Bill > SB541

This bill requires the California Energy Commission to enhance its approach to load shifting, which is the practice of reducing electricity demand during peak hours to improve grid efficiency. Specifically, the bill mandates that by January 1, 2027, the Energy Commission must analyze the cost-effectiveness of various load flexibility programs and identify the amount of load shifting each intervention can achieve. The commission must estimate each retail supplier's load-shifting potential, considering factors like service territory limitations and program cost-effectiveness. Starting in 2028, the commission will be required to biennially publish the amount of load shifting achieved by each retail supplier. The bill recognizes that the electrical grid has significant unused capacity during non-peak hours and that load shifting could save California consumers up to $550 million annually by 2035 by reducing the need for additional generation infrastructure. Load shifting strategies may include adjusting smart thermostats, electric vehicle charging times, and using energy storage, but explicitly exclude fossil fuel-powered backup generators. The legislation aims to encourage more efficient electricity use, support grid reliability, and potentially accelerate support for new customers without requiring massive infrastructure investments, while ensuring that any load flexibility programs benefit both participating and non-participating utility customers.

Budget and Finance, Transportation and Infrastructure

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260SB541