REDUCE Act
Sponsored By: Senator Richard Durbin
In Committee
Summary
Allow aggregators of retail customers to bid in organized wholesale electricity markets. This bill would require regional transmission organizations to permit bids that aggregate customer demand flexibility for utilities that distributed more than 4,000,000 megawatt-hours in the prior fiscal year, with the Federal Energy Regulatory Commission (FERC) directed to issue implementing rules within one year and subject to state-law prohibitions and applicable market rules.
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- Households and businesses: Aggregators could pool customers' ability to reduce or shift electricity use so those customers can participate indirectly in wholesale markets through aggregated bids.
- Large utilities: The change applies only to utilities that distributed more than 4,000,000 MWh last year, so eligibility is limited to larger distribution utilities.
- State regulators and market operators: State laws or state utility commissions can bar participation where they prohibit it, and FERC must write a rule within one year to operationalize the policy.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 1 benefits, 0 costs, 0 mixed.
Allow aggregators to bid in power markets
If enacted, Transmission Organizations would have to allow aggregators of retail customers to submit bids that pool customers' demand flexibility. This would apply to customers of utilities that delivered more than 4,000,000 megawatt-hours in the previous fiscal year. The change must fit existing market rules and would not override a valid state law or state commission prohibition. The Federal Energy Regulatory Commission would have to issue a rule to implement this within one year of enactment.
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Sponsors & CoSponsors
Sponsor
Richard Durbin
IL • D
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
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