SACRAMENTO, CA— California homes and businesses are one step closer to achieving lower energy bills as the State Assembly passed Assembly Bill (AB) 44 with bipartisan support. AB 44, authored by Assemblymember Nick Schultz, is designed to lower energy costs and improve grid reliability by streamlining processes for utilities to use demand-side technologies like virtual power plants (VPPs) to reduce electricity use during peak demand.

“With AB 44, we’re modernizing the way California manages its energy needs,” said Assemblymember Schultz. “This bill makes it easier for utilities to utilize technologies that reduce demand during peak hours—cutting costs for consumers and strengthening grid reliability during the most critical times.”

“AB 44 will make it easier for utilities and community choice aggregators to incorporate VPPs into their planning, leading to direct benefits for consumers,” said Edson Perez, California lead at Advanced Energy United. “Unlocking these resources will deliver real savings to Californians while keeping our grid resilient and prepared for rising demand.”

National business association Advanced Energy United urges the legislature to continue advancing this legislation and to also pass AB 740, a companion VPP billl, which is scheduled for a vote next week.