Utilities would seek approval to coordinate customers’ energy devices

Each electric utility would file a program proposal for commission review. The proposals would cover programs that coordinate customers’ energy devices to provide grid services. The commission would hold a proceeding with stakeholder input and approve or modify each proposal. The commission would approve or modify each proposal within 100 days.

Approved programs would enroll energy devices and provide payments for enrollment and grid services. Enrollment would include batteries, electric vehicles, and combinations of energy technologies. Programs would include one-time payments for devices that reduce peak demand or provide grid services. Customers could enroll directly with a utility or through an aggregator. Battery performance would be measured at the device, without extra meters. Participants would face no penalties for poor performance, though the commission could allow removal from a program. Programs could offer higher upfront payments to low- and moderate-income customers. Participants could lock in payment rates for five years, with re-enrollment options. Participants could lock in payment rates for five years, with re-enrollment options.

The commission would set performance targets and incentives, and utilities would report on their programs. These targets and reports would cover electric utilities’ distributed power plant programs. The commission would set annual system peak-reduction targets over five years, with financial rewards and possible penalties for utilities. The commission would also set targets for other grid services. Utilities would file annual reports by January 31. The bill text sets January 1, 2027, as its effective date.

Utilities could seek approval to recover prudent program costs. This would cover costs electric utilities incur to run distributed power plant programs. Recoverable costs could include program implementation, participant payments, and related expenses. The commission would approve the recovery method, which could include reasonable interest on working capital.