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.