Environment
California energy laws expand home power and scrutinize utility returns
New laws direct regulators to create a pathway for virtual power plants and consider lower utility profits on lower-risk infrastructure investments.
California has enacted two energy laws intended to make greater use of customer-owned equipment and put more scrutiny on utility investment returns, the Los Angeles Times reported October 2. Gov. Gavin Newsom signed Senate Bills 905 and 913 on September 30, according to the governor's legislative update.
What it means locally
SB 913 directs the California Public Utilities Commission to establish a pathway by June 30, 2027, for home batteries, rooftop solar, electric-vehicle chargers and smart thermostats to be aggregated as virtual power plants that can supply electricity during peak demand. SB 905 requires the commission to consider lower allowed returns on lower-risk utility investments, including some underground power-line projects, and calls for more transparency about unused grid capacity. Southern California Edison and Pacific Gas & Electric opposed SB 905, warning that lower returns could discourage needed investment; both utilities were neutral on SB 913. The laws establish regulatory work and do not guarantee an immediate reduction in customer bills. The accompanying photograph shows rooftop solar panels on a Los Angeles home in January 2021 and is archival; it does not depict a virtual power plant, home battery or the bill signing.
Full report and further details: Read original report →