Its a rarely used ability, but spell casters have the ability to cast spells at a lower caster level provided that they still meet a spell's minimum requirements.
When is this choice made for prepared spell casters? Is it when they prepare the spell or as they are casting the spell?
You can cast a spell at a lower caster level than normal, but the caster level you choose must be high enough for you to cast the spell in question, and all level-dependent features must be based on the same caster level.