Last week, California Chamber of Commerce-supported legislation that will enable the state to participate in an expanded regional electricity market was signed by Gov. Gavin Newsom.
Assembly Bill 825 (Petrie-Norris; D-Irvine; /Rivas; D-Salinas/ Becker; D-Menlo Park) was strongly supported by business, labor, and environmental groups. The coalition-backed proposal came together in the closing days of the legislative session.
Cost Cutter
AB 825 encompasses many of the components of Senate Bill 540 (Becker; D-Menlo Park/ Stern; D-Los Angeles), a bill CalChamber identified as a Cost Cutter making California more affordable.
California’s energy future depends on a grid that’s affordable, reliable, and clean. AB 825 is a key step toward achieving those goals, paving a practical path to participate in a broader regional power market while maintaining California’s control of its grid and consumer protections.
Improved Efficiency
A broader regional market improves dispatch efficiency, reduces curtailment of renewable generation, and expands access to low-cost resources for California customers.
Multiple studies show the state’s participation in a “large footprint” regional market can yield more than $1 billion in annual savings for households and businesses.
Those savings matter for family budgets, for small manufacturers navigating thin margins, and for the competitiveness of energy-intensive employers that anchor local economies.
Greater regional coordination also gives the California Independent System Operator (CAISO) access to a wider set of flexible resources across time zones and seasons, lowering the chance of shortfalls during net-peak periods and smoothing renewable variability across geography.
