Newsom's Veto of AB 44 Sparks Debate on California's Energy Policies
California has seen a surge in demand response and virtual power plant initiatives, driven by the growth of distributed energy resources. However, a recent veto by Governor Gavin Newsom has sparked debate about the state's energy policies.
A study by the Brattle Group estimated that California's virtual power plant could save ratepayers a substantial $206 million between 2025 and 2028. This highlights the potential of demand response programs to reduce costs and improve grid reliability.
Assembly Bill 44, aimed at advancing these programs, directed the state energy commission to adopt technical requirements for modifying electrical demand forecasts. However, Governor Newsom vetoed the bill, stating it did not align with the California Public Utility Commission's Resource Adequacy framework. Advocates criticized this decision, arguing it missed an opportunity to promote demand response policies.
Newsom recently signed a package of energy legislation, but it did not include funding for grid reliability programs, such as a virtual power plant. The National Renewable Energy Laboratory (NREL) had previously reported on the cost savings of a tax-funded virtual power plant in California.
The veto of AB 44 and the exclusion of funding for grid reliability programs in the recent energy legislation package have raised questions about California's commitment to demand response and virtual power plant initiatives. Despite this, the potential cost savings and benefits to ratepayers, as highlighted by the Brattle Group's report, underscore the importance of these programs in the state's energy landscape.
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