Storage Design and Modeling: Updated Discussion and Issue Paper on Uplift and Default Energy Bid posted, comments due 01/08/26

The California ISO is pleased to announce that the updated discussion and issue paper on Uplift and Default Energy Bid (DEB) has been posted. This updated discussion and issue paper seeks to capture the problem statements, guiding principles, stakeholder perspectives and policy recommendations shared during the working group process regarding the Uplift and DEB topic group. The updated discussion and issue paper builds on the materials developed for the Storage Bid Cost Recovery and Default Energy Bid Enhancements initiative in 2024 and the working group meetings held from December 2024 to December 2025 within the Storage Design and Modeling initiative. The paper: 

• Includes a detailed discussion of the relationship between storage uplift and other market design elements to provide an overview of the drivers behind current bid cost recovery payments.
• Identifies problem statements and underscores guiding principles regarding storage uplift redesign and enhancements relative to the energy storage default energy bid.
• Provides an overview of policy recommendations to date, including conceptual frameworks advanced by stakeholders, and includes an initial risk and feasibility assessment of the recommendations.

The paper is available in the Storage Design and Modeling initiative webpage. 

Please submit written comments on the updated discussion and issue paper by end of day Jan 8, 2026 , through the ISO’s commenting tool using the link on the initiative webpage.