The REDUCE Act requires electricity grid operators (called Transmission Organizations) to allow aggregators to combine the flexible energy-use capabilities of thousands of individual customers and bid that combined flexibility into wholesale electricity markets, similar to how power plants bid energy. This applies to customers of large utilities that distributed more than 4 million megawatt-hours annually, effectively opening up demand flexibility from millions of Americans as a resource that can help balance the grid and support clean energy. The bill overrides state laws or regulations that currently prohibit such customer aggregation bidding, creating a uniform federal standard. The Federal Energy Regulatory Commission must issue implementing rules within one year of the law's enactment. By allowing consumers' ability to reduce or shift electricity use to be treated like a power supply resource in wholesale markets, the bill aims to make clean energy more economical while giving customers new ways to participate in and benefit from the electricity system.
Take Action
Your position
Add a comment
to comment on this bill.
Annotate the text
Highlight any passage on the Summary or Full Text tab to attach a note. Annotations appear on the Annotations tab.