Feds approve Constellation sale

By Baltimore Business Journal


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Federal regulators said MidAmerican Energy Holdings Inc.Â’s deal to buy BaltimoreÂ’s Constellation Energy Group Inc. does not violate antitrust laws, clearing the $4.7 billion sale of one potential hurdle.

The Federal Trade Commission approved the deal in a list of transactions it periodically reviews.

“We are pleased by the decision and will continue to work closely with MidAmerican to obtain regulatory and shareholder approval of the transaction,” Mayo A. Shattuck III, CEO of Constellation Energy, said in a statement.

Constellation, parent of Baltimore Gas and Electric Co. and one of the regionÂ’s largest employers, announced its proposed sale to Iowa-based MidAmerican, a subsidiary of billionaire Warren BuffettÂ’s Berkshire Hathaway Inc., on September 18. BGE is regulated by the Maryland Public Service Commission, which on Monday began its formal review of the deal.

State and federal regulators and Constellation shareholders would need to approve the deal.

“The underlying question in this proceeding is whether the public interest is served,” said Douglas Nazarian, the PSC’s chairman. “We will find a way to make this as public and open as we can.”

The PSC review of the proposed merger could take six months, Nazarian said. He told the parties itÂ’s a schedule state regulators plan to follow.

“Discovery starts today, like now,” he said. “If there are any bumps in the road, we will work fast to have them resolved.”

The PSC could file the schedule for the reviews later this week, said LaWanda Edwards, spokeswoman for the PSC. The review would include testimony from Constellation, BGE and MidAmerican officials as well as public hearings on the proposed merger.

Constellation, which moved toward bankruptcy before striking a deal with MidAmerican, said October 31 that it will look for about $750 million more in cash to continue to stabilize its finances.

As part of its deal with Constellation, MidAmerican pumped about $1 billion in liquidity into the company in September.

“Constellation Energy continues to pursue a clear strategy to improve its liquidity position in the face of very challenging conditions in the financial and energy markets,” Greg Abel, CEO of MidAmerican, said in a statement released October 31. “We are working diligently to complete the merger, which will restore financial stability to Constellation Energy and Baltimore Gas and Electric.”

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Power Outages to Mitigate Wildfire Risks

Colorado Wildfire Power Shutoffs reduce ignition risk through PSPS, grid safety protocols, data-driven forecasts, and emergency coordination, protecting communities, natural resources, and infrastructure during extreme fire weather fueled by drought and climate change.

 

Key Points

Planned PSPS outages cut power in high-risk areas to prevent ignitions, protect residents, and boost wildfire resilience.

✅ PSPS triggered by forecasts, fuel moisture, and fire danger indices.

✅ Utilities coordinate alerts, timelines, and critical facility support.

✅ Paired with forest management, education, and rapid response.

 

Colorado, known for its stunning landscapes and outdoor recreation, has implemented proactive measures to reduce the risk of wildfires by strategically shutting off power in high-risk areas, similar to PG&E wildfire shutoffs implemented in California during extreme conditions. This approach, while disruptive, aims to safeguard communities, protect natural resources, and mitigate the devastating impacts of wildfires that have become increasingly prevalent in the region.

The decision to initiate power outages as a preventative measure against wildfires underscores Colorado's commitment to proactive fire management and public safety, aligning with utility disaster planning practices that strengthen grid readiness. With climate change contributing to hotter and drier conditions, the state faces heightened wildfire risks, necessitating innovative strategies to minimize ignition sources and limit fire spread.

Utility companies, in collaboration with state and local authorities, identify areas at high risk of wildfire based on factors such as weather forecasts, fuel moisture levels, and historical fire data. When conditions reach critical thresholds, planned power outages, also known as Public Safety Power Shutoffs (PSPS), are implemented to reduce the likelihood of electrical equipment sparking wildfires during periods of extreme fire danger, particularly during windstorm-driven outages that elevate ignition risks.

While power outages are a necessary precautionary measure, they can pose challenges for residents, businesses, and essential services that rely on uninterrupted electricity, as seen when a North Seattle outage affected thousands last year. To mitigate disruptions, utility companies communicate outage schedules in advance, provide updates during outages, and coordinate with emergency services to ensure the safety and well-being of affected communities.

The implementation of PSPS is part of a broader strategy to enhance wildfire resilience in Colorado. In addition to reducing ignition risks from power lines, the state invests in forest management practices, wildfire prevention education, and emergency response capabilities, including continuity planning seen in the U.S. grid COVID-19 response, to prepare for and respond to wildfires effectively.

Furthermore, Colorado's approach to wildfire prevention highlights the importance of community preparedness and collaboration, and utilities across the region adopt measures like FortisAlberta precautions to sustain critical services during emergencies. Residents are encouraged to create defensible space around their properties, develop emergency evacuation plans, and stay informed about wildfire risks and response protocols. Community engagement plays a crucial role in building resilience and fostering a collective effort to protect lives, property, and natural habitats from wildfires.

The effectiveness of Colorado's proactive measures in mitigating wildfire risks relies on a balanced approach that considers both short-term safety measures and long-term fire prevention strategies. By integrating technology, data-driven decision-making, and community partnerships, the state aims to reduce the frequency and severity of wildfires while enhancing overall resilience to wildfire impacts.

Looking ahead, Colorado continues to refine its wildfire management practices in response to evolving environmental conditions and community needs, drawing on examples of localized readiness such as PG&E winter storm preparation to inform response planning. This includes ongoing investments in fire detection and monitoring systems, research into fire behavior and prevention strategies, and collaboration with neighboring states and federal agencies to coordinate wildfire response efforts.

In conclusion, Colorado's decision to implement power outages as a preventative measure against wildfires demonstrates proactive leadership in wildfire risk reduction and public safety. By prioritizing early intervention and community engagement, the state strives to safeguard vulnerable areas, minimize the impact of wildfires, and foster resilience in the face of increasing wildfire threats. As Colorado continues to innovate and adapt its wildfire management strategies, its efforts serve as a model for other regions grappling with the challenges posed by climate change and wildfire risks.

 

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Sask. sets new record for power demand

SaskPower Summer Power Demand Record hits 3,520 MW as heat waves drive electricity consumption; grid capacity, renewables expansion, and energy efficiency tips highlight efforts to curb greenhouse gas emissions while meeting Saskatchewan's growing load.

 

Key Points

The latest summer peak load in Saskatchewan: 3,520 MW, driven by heat, with plans to expand capacity and lower emissions.

✅ New peak surpasses last August by 50 MW to 3,520 MW.

✅ Capacity target: 7,000 MW by 2030 with more renewables.

✅ Tips: AC settings, close blinds, delay heat-producing chores.

 

As the mercury continues to climb in Saskatchewan, where Alberta's summer electricity record offers a regional comparison, SaskPower says the province has set a new summer power demand record.

The Crown says the new record is 3,520 megawatts. It’s an increase of 50 megawatts over the previous record, or enough electricity for 50,000 homes.

“We’ve seen both summer and winter records set every year for a good while now. And if last summer is any indication, we could very well see another record before temperatures cool off heading into the fall,” said SaskPower Vice President of Transmission and Industrial Services Kory Hayko in a written release. “It’s not impossible we’ll break this record again in the coming days. It’s SaskPower’s responsibility to ensure that Saskatchewan people and businesses have the power they need to thrive. That’s what drives our investment of $1 billion every year, as outlined in our annual report, to modernize and grow the province’s electrical system.”

The previous summer consumption record of 3,740 megawatts was set last August, and similar extremes in the Yukon electricity demand highlight broader demand pressures this year. The winter demand record remains higher at 3,792 megawatts, set on Dec. 29, 2017.

SaskPower says it plans to expand its generation capacity from 4,500 megawatts now to 7,000 megawatts in 2030, with a focus on decreasing greenhouse gas emissions and doubling renewable electricity by 2030 as part of its strategy.

To reduce power bills, the Crown suggests turning down or programming air conditioning when residents aren’t home, inspecting the air conditioner to make sure it is operating efficiently, keeping blinds closed to keep out direct sunlight, delaying chores that produce heat and making sure electronics are turned off when people leave the room.

The new record beats the previous summer peak of 3,470 MW, set last August after also being broken twice in July. The winter demand record is still higher at 3,792 MW, which was set on December 29, 2017. To meet growing power demand, and amid projections that Manitoba's electrical demand could double in the next 20 years, SaskPower is expanding its generation capacity from approximately 4,500 MW now to 7,000 MW by 2030 while also reducing greenhouse gas emissions by 40 per cent from 2005 levels. To accomplish this, we will be significantly increasing the amount of renewables on our system.

Cooling and heating represents approximately a quarter of residential power bills. To reduce consumption and power bills during heat waves, SaskPower’s customers can:

Turn down or program the air conditioning when no one is home (for every degree that air conditioning is lowered for an eight-hour period, customers can save up to two per cent on their power costs);

Consider having their air conditioning unit inspected to make sure it is operating efficiently;

Keep the heat out by closing blinds and drapes, especially those with direct sunlight;

Delay chores that produce heat and moisture, like dishwashing and laundering, until the cooler parts of the day or evening; and

As with any time of the year, make sure lights, televisions and other electronics are turned off when no one's in the room. For example, a modern gaming console can use as much power as a refrigerator.

 

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EDF and France reach deal on electricity prices-source

EDF Nuclear Power Price Deal sets a 70 euros/MWh reference price, adds consumer protection if wholesale electricity prices exceed 110 euros/MWh, and outlines taxation mechanisms to shield bills while funding nuclear investment.

 

Key Points

A government-EDF deal setting 70 euros/MWh with safeguards above 110 euros/MWh to protect consumers.

✅ Reference price fixed at 70 euros/MWh, near EDF costs.

✅ Consumer shield above 110 euros/MWh; up to 90% extra-revenue tax.

✅ Review clauses maintain 70 euros/MWh through market swings.

 

State-controlled power group EDF and the French government have reached a tentative deal on future nuclear power prices, echoing a new electricity pricing scheme France has floated, a source close to the government said on Monday, ending months of tense negotiations.

The two sides agreed on 70 euros per megawatt hour (MWH) as a reference level for power prices, aligning with EU plans for more fixed-price contracts for consumers, the source said, cautioning that details of the deal are still being finalised.

The negotiations aimed to find a compromise between EDF, which is eager to maximise revenues to fund investments, and the government, keen to keep electricity bills for French households and businesses as low as possible, amid ongoing EU electricity reform debates across the bloc.

EDF declined to comment.

The preliminary deal sets out mechanisms that would protect consumers if power market prices rise above 110 euros/MWH, similar to potential emergency electricity measures being weighed in Europe, the source said, adding that the deal also includes clauses that would provide a price guarantee for EDF.

The 70 euros/MWH agreed reference price level is close to EDF's nuclear production costs, as Europe moves to revamp its electricity market more broadly. The nuclear power produced by the company provides 70% of France's electricity.

The agreement would allow the government to tax EDF's extra revenues at 90% if prices surpass 110 euros/MWH, in order to offset the impact on consumers. It would also enable a review of conditions in case of market fluctuations to safeguard the 70 euro level for EDF, reflecting how rolling back electricity prices is tougher than it appears, the source said.

French wholesale electricity prices are still above 100 euros/MWH, after climbing to 1,200 euros during last year's energy crisis, even as diesel prices have returned to pre-conflict levels.

A final agreement should be officially announced on Tuesday after a meeting between Finance Minister Bruno Le Maire, Energy Transition Minister Agnes Pannier-Runacher and EDF chief Luc Remont.

That meeting will work out the final details on price thresholds and tax rates between the reference level and the upper limit, the source said.

Negotiations between the two sides were so fraught that at one stage they raised questions about the future of EDF chief Luc Remont, who was appointed by President Emmanuel Macron a year ago to turn around EDF.

The group ended 2022 with a 18 billion-euro loss and almost 65 billion euros of net debt, hurt by a record number of reactor outages that coincided with soaring energy prices in the wake of Russia's invasion of Ukraine.

With its output at a 30-year low, EDF was forced to buy electricity on the market to supply customers. The government, meanwhile, imposed a cap on electricity prices, leaving EDF selling power at a discount.

 

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Renewable electricity powered California just shy of 100% for the first time in history

California Renewable Energy Record highlights near-100% clean power as CAISO reports solar, wind, and storage meeting demand, with Interstate 10 arrays and distributed rooftop photovoltaics boosting the grid during Stagecoach, signaling progress toward 100%.

 

Key Points

CA Renewable Energy Record marks CAISO's peak when renewables nearly met total load, led by utility solar and storage.

✅ CAISO hit 99.87% renewables serving load at 2:50 p.m.

✅ Two-thirds of power came from utility-scale solar along I-10.

✅ Tariff inquiry delays solar-storage projects statewide.

 

Renewable electricity met just shy of 100% of California's demand for the first time on Saturday, officials said, much of it from large amounts of solar power, part of a California solar boom, produced along Interstate 10, an hour east of the Coachella Valley.

While partygoers celebrated in the blazing sunshine at the Stagecoach music festival,  "at 2:50 (p.m.), we reached 99.87 % of load served by all renewables, which broke the previous record," said Anna Gonzales, spokeswoman for California Independent System Operator, a nonprofit that oversees the state's bulk electric power system and transmission lines. Solar power provided two-thirds of the amount needed.

Environmentalists who've pushed for years for all of California's power to come from renewables and meet clean energy targets were jubilant as they watched the tracker edge to 100% and slightly beyond. 

"California busts past 100% on this historic day for clean energy!" Dan Jacobson, senior adviser to Environment California, tweeted.

"Once it hit 100%, we were very excited," said Laura Deehan, executive director for Environment California. She said the organization and others have worked for 20 years to push the Golden State to complete renewable power via a series of ever tougher mandates, even as solar and wind curtailments increase across the grid. "California solar plants play a really big role."

But Gonzales said CAISO double-checked the data Monday and had to adjust it slightly because of reserves and other resource needs, an example of rising curtailments in the state. 

Environment California pushed for 1 million solar rooftops statewide, which has been achieved, adding what some say is a more environmentally friendly form of solar power, though wildfire smoke can undermine gains, than the solar farms, which eat up large swaths of the Mojave desert and fragile landscapes.

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'Need to act with that same boldness':A record 10% of the world's power was generated by wind, solar methods in 2021

Deehan said in a statement that more needs to be done, especially at the federal level. "Despite incredible progress illustrated by the milestone this weekend, and the fact that U.S. renewable electricity surpassed coal in 2022, a baffling regulatory misstep by the Biden administration has advocates concerned about backsliding on California’s clean energy targets." 

Deehan said a Department of Commerce inquiry into tariffs on imported solar panels is delaying thousands of megawatts of solar-storage projects in California, even as U.S. renewable energy hit a record 28% in April across the grid.

Still, Deehan said, “California has shown that, for one brief and shining moment, we could do it! It's time to move to 100% clean energy, 100% of the time.”

 

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Elizabeth May wants a fully renewable electricity grid by 2030. Is that possible?

Green Party Mission Possible 2030 outlines a rapid transition to renewable energy, electric vehicles, carbon pricing, and grid modernization, phasing out oil and gas while creating green jobs, public transit upgrades, and building retrofits.

 

Key Points

A Canadian climate roadmap to decarbonize by 2030 via renewables, EVs, carbon pricing, and grid upgrades.

✅ Ban on new gas cars by 2030; accelerate EV adoption and charging.

✅ 100 percent renewable-powered grid with interprovincial links.

✅ Just transition: retraining, green jobs, and building retrofits.

 

Green Party Leader Elizabeth May has a vision for Canada in 2030. In 11 years, all new cars will be electric. A national ban will prohibit anyone from buying a gas-powered vehicle. No matter where you live, charging stations will make driving long distances easy and affordable. Alberta’s oil industry will be on the way out, replaced by jobs in sectors such as urban farming, renewable energy and retrofitting buildings for energy efficiency. The electric grid will be powered by 100 per cent renewable energy as Canada’s race to net-zero accelerates.

It’s all part of the Greens’ “Mission Possible” – a detailed plan released Monday with a level of ambition made clear by its very name. May insists it’s the only way to confront the climate crisis head-on before it’s too late.

“We have to set our targets on what needs to be done. You can’t negotiate with physics,” May told CTV’s Power Play on Monday.

But is that 2030 vision realistic?

CTVNews.ca spoke with experts in economics, political policy, renewable energy and climate science to explore how feasible May’s plan is, how much it would cost and what transitioning to an environmentally-centred economy would look like for everyday Canadians.

 

MOVING TO A GREEN ECONOMY

Recent polling from Nanos Research shows that the environment and climate change is the top issue among voters this election.

If the Greens win a majority on Oct. 21 – an outcome that May herself acknowledged isn’t likely – it would signal a major restructuring of the Canadian economy.

According to the party’s platform, jobs in the fuels sectors, such as oil and gas production in Alberta, would eventually disappear. The Greens say those job losses would be replaced by opportunities in a variety of fields including renewable energy, farming, public transportation, manufacturing, construction and information technology.

The party would also introduce a guaranteed livable income and greater support for technical and educational training to help workers transition to new jobs.

But Jean-Thomas Bernard, an economist who specializes in energy markets, said plenty of people in today’s energy sector, such as oil and gas workers, wouldn’t have the skills to make that transition.

“Quite a few of these jobs have low technical requirements. Driving a truck is driving a truck. So quite few of these people will not have the capacity to be recycled into well-paid jobs in the renewable sector,” he said.

“Maybe this would be for the young generation, but not people who are 40, 45, 50.”

Ryan Katz-Rosene is an associate professor at the University of Ottawa who researches environmental policy. He says May’s overall pitch is technically possible but would require a huge amount of enthusiasm on behalf of the public. 

“The plan in itself is not physically impossible. It is theoretically achievable. But it would require a major, major change in the urgency and the level of action, the level of investment, the level of popular urgency, the level of political commitment,” he said.

“But it’s not completely fantastical in it being theoretically impossible.”

 

PHASING OUT BITUMEN PRODUCTION

Katz-Rosene said that, under the Greens’ plan, Canadians would need to pay for a bold carbon pricing plan that helps shift the country away from fossil fuels and has significant implications for electricity grids, he said. It would also mean dramatically upscaling the capacity of Canada’s existing electrical grid to account for millions of new electric cars, reflecting the need for more electricity to hit net-zero as demand grows.

 “Given Canada’s slow attempt to climate action and pretty lacklustre results in these years, to be frank, this plan is very, very difficult to achieve. We’re talking 11 years from now. But things change, people change, and sometimes that change can occur very quickly. Just look at the type of climate mobilization we’re seen among young people in the last year, or the last five years.”

Bernard, the economist, is less optimistic. He cited international agreements such as the Kyoto Protocol from 1997 and the more recent Paris Climate Agreement and said that little has come of those plans.

A climate solution with teeth, he suggests, would need to be global – something that no federal government can completely control.

“I find a lot this talk to be overly optimistic. I don’t know why we keep having this talk that is overly optimistic,” he said, adding that he believes humankind is already beyond the point of being able to stop irreversible climate change. 

“I think we are moving toward a mess, but the effort to control that is still not there.”

As for transitioning away from Canada’s oil industry, Bernard said May’s plan simply wouldn’t work.

“Trying to block some oil production here and there means more oil will be produced elsewhere,” he said. “Canada could become a clean country, but worldwide it would not be much.”

Mike Hudema, a climate organizer with Greenpeace Canada, thinks the Green Party’s promises for 2030 are big – and that’s kind of the point.

“They are definitely ambitious, but ambition is exactly what these times call for.  Unfortunately our government has delayed acting on this problem for so long that we have a very short timeline which we have to turn the ship,” he said.

“So this is the type of ambition that the science is calling for. So yes, I believe that if we here in Canada were to put our minds to addressing this problem, then we have the ability to reach it in that 2030 timeframe.”

In a statement to CTVNews.ca, a Green Party spokesperson said the 2030 timeline is intended to meet the 45 per cent reduction in emissions by 2030 as laid out by the Intergovernmental Panel on Climate Change.

“If we miss the 2030 target, we risk triggering runaway global warming,” the spokesperson said.

 

GREENING THE GRID BY 2030

Greening Canada’s existing electric grid – a goal May has pegged to 2030 – is quite feasible, Katz-Rosene said, and cleaning up Canada’s electricity is critical to meeting climate pledges. Already, 82 per cent of the country’s electric grid is run off of renewable resources, which makes Canada a world leader in the field, he said.

Hudema agrees.

“It is feasible. Canada does have a grid already that has a lot of renewables in it. So yes we can definitely make it over the hump and complete the transition. But we do need investments in our electric grid infrastructure to ensure a certain capability. That comes with tremendous job growth. That’s the exciting part that people keep missing,” Hudema said.

But Bernard said switching the grid to 100 per cent renewables would be quite difficult. He suggested that the Greens’ 2030 vision would require Ontario and Quebec’s hydro production to help power the Prairies.

“To think we could boost (hydro production) much more in order to meet Saskatchewan and Alberta’s needs? Oh boy. To do this before 2030? I think that’s not reasonable, not feasible.”

In a statement to CTV News, the Greens said their strategy includes building new connections between eastern Manitoba and western Ontario to transmit clean energy. They would also upgrade existing connections between New Brunswick and Nova Scotia and between B.C. and Alberta to boost reliability.

A number of “micro-grids” in local communities capable of storing clean energy would help reduce the dependency on nationwide distribution systems, the party said.

Even so, the Greens acknowledged that, by 2030, some towns and cities will still be using some fossil fuels, and that even by 2050 – the goal for achieving overall carbon neutrality – some “legacy users” of fossil fuels will remain.

However, according to party projections, the emissions of these “legacy users” would be at most 8 per cent of today’s levels and those emissions would be “more than completely offset” by re-forestation and new technologies, such as CO2 capture and storage.

 

ELECTRIC VEHICLE REVOLUTION

The Green Party’s platform promises to revolutionize the Canadian auto sector. By 2030, all new cars made in Canada would be electric and federal EV sales regulations would prohibit the sale of cars powered by gasoline.

Danny Harvey, a geography professor with the University of Toronto who specializes in renewable energy, said he thinks May’s plan for making a 100 per cent renewable-powered electric grid is feasible.

On cars, however, he thinks the emphasis on electric vehicles is “misplaced.”

“At this point in time we should be requiring automobiles to transition, by 2030, to making cars that can go three times further on a litre of gasoline than at present. This would require selling only advanced hybrid-electric vehicles (HEVs), which would run entirely on gasoline (like current HEVs),” he said.

“After that, and when the grid is fully ready, we could make the transition to fully electric or plugin hybrid electric vehicles, possibly using H2 for long-distance driving.”

At the moment, zero-emissions vehicles account for just over 2 per cent of annual vehicle sales in Canada. Katz-Rosene said that “isn’t a whole lot,” but the industry is on an exponential growth curve that doesn’t show any signs of slowing.

The trouble with May’s 2030 goal on electric vehicles, he said, has to do with Canadians’ taste in vehicles. In short: Canadians like trucks.

“The biggest obstacle I see is that I don’t even think it’s possible to get a light-duty truck, a Ford F150, in an electric model in Canada. And that’s the most popular type of vehicle,” he said.

However, if a zero emissions truck were on the market – something that automakers are already working on – then that could potentially shake things up, especially if the government introduces incentives for electric vehicles and higher taxes on gasoline, he said.

 

WHAT ABOUT THE COST?

CTVNews.ca reached out to the Green Party to ask how it would pay to revamp the electrical grid. The party did not give a precise figure but said that the plan “has been estimated to cost somewhat less” than the Trans Mountain Pipeline expansion.

The Greens have vowed to scrap the expansion and put that money toward the project.

Upgrading the electric grid to 100 per cent sustainable energy would also be a cost-effective, long-term solution, the Greens believe, though critics say Ottawa is making electricity more expensive for Albertans amid the transition.

“Current projects for renewable energy in Canada and worldwide are consistently at lower capital and operating costs than any type of fossil, hydro or nuclear energy project,” the party spokesperson said.

The party’s platform includes other potential sources of money, including closing tax loopholes for the wealthy, cracking down on offshore tax dodging and a new corporate tax on e-commerce companies, such as Facebook, Amazon and Netflix. The Greens have also vowed to eliminate all fossil fuel subsidies.

As for the economic realities, Katz-Rosene acknowledged that May’s plan may appeal to “radical” voters who view economic growth as anathema to addressing climate change.

But while May’s plan would be disruptive, it isn’t anti-capitalist, he said.

“It’s restrained capitalism. But it by no means an anti-capitalist platform, and none of the parties have an anti-capitalist platform by any stretch of the imagination,” Katz-Rosene said.

From an economist’s perspective, Bernard said the plan is still “very costly” and that taxes can only go so far.

“In the end, no corporation operates at a loss. At some stage, these taxes have to go to the users,” he said.

But conversations around money must also consider the cost of inaction on climate change, Hudema said.

“Costing (Elizabeth May) is always a concern and how we’re going to afford these things is something we definitely need to keep top of mind. But within that conversation we need to look at what is the cost of not doing what is in line with what the science is saying. I would say that cost is much more substantial.”

“The forecast, if we don’t act – it’s astronomical.”

 

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Newsom Vetoes Bill to Codify Load Flexibility

California Governor Gavin Newsom vetoed a bill aimed at expanding load flexibility in state grid planning, citing conflicts with California’s resource adequacy framework and concerns over grid reliability and energy planning uncertainty.

 

Why has Newsom vetoed the Bill to Codify Load Flexibility?

Governor Gavin Newsom’s veto blocks legislation that would have required the California Energy Commission to incorporate load flexibility into the state’s energy planning and policy framework, a move that has stirred debate across the clean energy sector.

✅ Argues the bill conflicts with California’s existing Resource Adequacy system

✅ Draws backlash from clean energy and grid modernization advocates

✅ Exposes ongoing tension over how to manage renewable integration and demand response

 

California Governor Gavin Newsom has vetoed Assembly Bill 44, which would have required the California Energy Commission to evaluate and incorporate load management mechanisms into the state’s energy planning process. The move drew criticism from clean energy advocates who say it undermines efforts to strengthen grid reliability and reduce costs.

The bill directed the commission to adopt “upfront technical requirements and load modification protocols” that would allow load-serving entities to adjust their electrical demand forecasts. Proponents viewed this as a way to modernize California’s grid management, and to explore a revamp of electricity rates to help clean the grid, making it more responsive to demand fluctuations and renewable energy variability.

In his veto statement, Newsom said the bill was incompatible with existing energy planning frameworks, even as a looming electricity shortage remains a concern. “While I support expanding electric load flexibility, this bill does not align with the California Public Utility Commission’s Resource Adequacy framework,” he said. “As a result, the requirements of this bill would not improve electric grid reliability planning and could create uncertainty around energy resource planning and procurement processes.”

Newsom’s decision comes shortly after he signed a broad package of energy legislation that set the stage for a regional Western electricity market and extended the state’s cap-and-trade program. However, that legislative package did not include continued funding for several key grid reliability programs — including what advocates have called the world’s largest virtual power plant, a distributed network of connected devices that can balance electricity demand in real time.

Clean energy supporters saw AB 44 as a crucial step toward integrating these distributed energy resources into long-term grid planning. “With Assembly Bill 44 being vetoed, the state has missed a huge opportunity to advance common-sense policy that would have lowered costs, strengthened the grid, and unlocked the full potential of advanced energy,” said Edson Perez, California lead at Advanced Energy United.

Perez added that the setback increases pressure on lawmakers to take stronger action in the next legislative session. “The pressure is on next session to ensure that California is using all tools in its policy toolbox to build critically needed infrastructure, strengthen the grid, and bring costs down,” he said.

California’s growing use of demand response programs and virtual power plants has been central to its strategy for managing grid stress during heat waves and wildfire seasons. These systems allow utilities and customers to temporarily reduce or shift energy use, helping to prevent blackouts and reduce the need for fossil-fuel peaker plants during peak demand.

A recent report by the Brattle Group found that California’s taxpayer-funded virtual power plant could save ratepayers $206 million between 2025 and 2028 while reducing reliance on gas generation. The study, commissioned by Sunrun and Tesla Energy, highlighted the potential for flexible load management to improve both grid reliability and reduce costs, even as regulators weigh whether the state needs more power plants to ensure reliability.

Despite these findings, Newsom’s veto signals continued tension between state policymakers and clean energy advocates over how best to modernize California’s power grid. While the governor has prioritized large-scale renewable development and regional market integration, critics argue that California’s climate policy choices risk exacerbating reliability challenges and that failing to codify load flexibility could slow progress toward a more adaptive, resilient, and affordable clean energy future.

 

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