California Enacts New Energy Grid Utility Laws
Governor Gavin Newsom signed two bills on September 30, 2026, aimed at modernizing California's energy grid management.
Updated on Oct. 28, 2026 in Utilities
Live Poll
Do you believe expanding distributed energy resources will help lower your monthly energy costs?
Governor Gavin Newsom signed Senate Bill 905 and Senate Bill 913 into law on September 30, 2026. These measures target the state energy affordability crisis by expanding the wholesale market participation of distributed energy resources.
Why it matters
The legislation addresses growing public and policymaker concern regarding energy affordability in California. By enabling more efficient grid utilization and aggregation, the state aims to better integrate distributed resources into its power market.
The new laws target a 2 GW potential boost in wholesale market participation from distributed energy resources. The California Public Utilities Commission faces a June 2028 deadline to finalize resource adequacy frameworks for these aggregations.
The players
Gavin Newsom
He is the current Governor of California who signed the energy legislation.
California Public Utilities Commission
This is the state agency responsible for regulating utilities and implementing the new performance-based metrics and frameworks.
The details
SB 913 permits customers to enroll multiple distributed energy resources behind a single meter using device-level telemetry. Meanwhile, SB 905 mandates that utilities report grid utilization data and requires the development of performance-based metrics to oversee capital investments.
Timeline
September 30, 2026: Governor Gavin Newsom signed Senate Bill 905 and Senate Bill 913.
June 2028: Deadline for the CPUC to establish DER aggregation resource adequacy.
Market Landscape
These laws refine the existing regulatory environment created by the California net billing tariff. By preventing duplicate compensation, the state is seeking to streamline how distributed assets interact with the broader utility market.
Customers may eventually see changes to how their home energy systems are compensated through utility billing structures. The shift aims to lower costs by improving overall grid efficiency and allowing for better resource management.
The takeaway
California residents should monitor future CPUC updates as these regulations move toward implementation. Enhanced grid management could provide more flexible options for homeowners managing personal energy production.
What happens next
The CPUC is expected to develop performance-based metrics for major utilities and establish frameworks for distributed energy resource aggregations by June 2028.
Further reading
Learn more about local grid developments in the California Utilities section.
Source note: This article includes information reported by Utility Dive.
Live Poll
Do you believe expanding distributed energy resources will help lower your monthly energy costs?
