Pathways implementation policy initiatives

The ISO is expecting to administer several policy initiatives to implement Pathways Step 2 in accordance with AB 825. This page will be updated as these initiatives are launched. 

Current initiatives

ROWE Start-up funding

The ISO opened a policy initiative proposing that the ISO co-sign a loan for the Regional Organization for Western Energy (ROWE), to be repaid in 2028 using revenues collected from the market. For more information, see the Financial Planning Initiatives (including Start-up Funding for the Regional Organization for Western Energy) initiative.

Status update

Following approval by the ISO Board and WEM Governing Body, the ISO filed necessary tariff amendments to implement this proposal with FERC on June 11, 2026 with a request that FERC accept these changes by August 10, 2026.

Jobs study

In March 2026, the ISO retained BEAR consulting to conduct the jobs study required by AB 825. For more information, see AB 825 jobs study.

Status update

The ISO hosted the kick-off workshop on June 9, 2026 with BEAR consulting to review the consultant’s inputs and assumptions for its study.

View Assembly Bill 825 - California job study meeting materials and comments.

Future initiatives

The ISO anticipates additional policy initiatives related to ROWE certification, potential tariff changes necessary to implement Pathways Step 2 governance, and the development of an ISO-ROWE agreement defining the roles and responsibilities of each organization.