AB 1975 will pave the way for utility companies to utilize existing grid infrastructure to save ratepayers money and rely more on clean, local, distributed energy.
As energy demand continues to grow, we need creative solutions to meet this need. Traditionally, utilities have expanded the electric grid to meet demand, but this approach is expensive, time-consuming, and increases electricity bills. Instead of building new utility infrastructure, California should maximize the utilization of our existing grid infrastructure.
Grid flexibility, when coordinated properly, uses existing grid capacity more efficiently. Many distribution circuits operate significantly below capacity most of the time, and at full capacity for only a small number of hours per year.
We can get more out of the grid we have already paid for by harnessing batteries and smart devices during times of peak usage. The potential savings are massive: a recent report shows that ratepayers across the country could save up to $170 billion over ten years if utilities increase grid utilization by 10 percent.
AB 1975 directs the California Public Utilities Commission (CPUC) to develop a distribution grid utilization metric and implement programs, rate designs, or other incentives to achieve a distribution grid utilization standard. This would mean that ratepayers would see lower electricity bills by requiring utilities to make better use of the existing grid.
At a time when California is facing an energy affordability crisis, implementing this bill has the potential to significantly reduce electricity costs.
Full bill text and more information.
Committee Status: AB 1975 was held in the Assembly Appropriations Committee on May 14.
Bill author
