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119-hr-604119th CongressWALLET

REDUCE Act

Sponsored By: Representative Casten, Sean [D-IL-6]

Introduced

Summary

Allow aggregators of retail customers to bid into organized wholesale electric markets. This bill would force Transmission Organizations to accept bids from aggregators that combine customer demand flexibility and would preempt State rules that block who may bid. FERC would have 12 months to write a final rule to carry out the change.

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  • Aggregators and customers: Aggregators that submit bids aggregating demand flexibility for customers of utilities that delivered more than 4 million megawatt-hours in the prior fiscal year could enter organized wholesale markets, creating new market access for those customers.
  • State regulators: State laws or commission orders that prohibit who may bid would be overridden when they stop aggregator participation, though market rules that themselves bar aggregator bidding remain controlling.
  • Market operators and FERC: Transmission Organizations must accept eligible aggregator bids when market rules allow it, and the Federal Energy Regulatory Commission would issue implementing rules within 12 months.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 1 benefits, 0 costs, 0 mixed.

Open power markets to aggregators

If enacted, transmission organizations would have to let aggregators of retail customers bid in wholesale power markets. It would apply only when aggregators combine demand from customers of utilities that distributed more than 4 million megawatt-hours in the prior fiscal year. This would apply even if state law or a state commission now blocks who can bid, but it would not override market rules that ban aggregator bidding. FERC would have to issue a final rule within 12 months to put this into effect. If passed, this could bring more demand flexibility and may lower wholesale prices in some regions.

Sponsors & CoSponsors

Sponsor

Casten, Sean [D-IL-6]

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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