The REDUCE Act requires transmission organizations that operate wholesale electricity markets to allow aggregators—companies that bundle together multiple customers' electricity needs—to bid into those markets on behalf of retail customers. Currently, state laws sometimes prohibit such participation, but this bill would override those restrictions for large utilities that distributed more than 4 million megawatt-hours annually. The legislation aims to unlock demand flexibility by enabling smaller customers to collectively participate in power markets, potentially reducing costs and supporting clean energy integration. The Federal Energy Regulatory Commission has 12 months from the bill's enactment to create the regulatory rules needed to implement this requirement. No specific federal funding is allocated in the bill.
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