Assembly Bill 825 passes the California legislature and now awaits the Governor’s signature
SACRAMENTO, CA—As the California legislative session comes to a close, lawmakers approved a bill designed to allow California to participate in an independently-governed Western electricity market. Assembly Bill (AB) 825, which is now an amended version of Senate Bill (SB) 540, has been sent to Governor Newsom for approval.
Participation in a broader electricity market, as envisioned by the West-Wide Governance Pathways Initiative and authorized by AB 825, could save California ratepayers over $1 billion annually, reduce reliance on expensive peaker plants, improve grid reliability, and expand renewable energy use, while still preserving the state's clean energy policies.
California's market participation will also have a significant impact on the rest of the West. This collaboration will allow states across the region to benefit from shared resources, reducing peak demand during times of grid stress and strengthening the Western grid.
"This is a pivotal moment for the West, demonstrating California's commitment to regional collaboration and ensuring all states' voices will be represented," said Leah Rubin Shen, Managing Director at Advanced Energy United. "The broad geographic footprint enabled by this legislation will provide the greatest economic benefits, improve affordability for consumers, and support a more resilient future for the whole region."
Advanced Energy thanks Governor Newsom, Speaker Rivas, Senate Pro Tem McGuire, and bill sponsors Senator Becker, Senator Stern, and Assemblywoman Petrie-Norris for their leadership in advancing a bill that takes a significant step toward a more flexible, reliable, and affordable energy future.