daily · Electrification

Newsom signs two California bills to expand virtual power plants

Canary Media reports California Gov. Gavin Newsom signed Senate Bills 905 and 913 on Wednesday, directing regulators to better measure and reward customer-owned batteries, EVs and thermostats that reduce grid stress, and to track how efficiently utilities use their grids.

By Greener Numbers Editorial Team · Published October 3, 2026 · Updated 10/3/2026

Canary Media reported on October 1, 2026 that California Gov. Gavin Newsom signed a slate of energy-affordability bills on Wednesday, including two that expand the use of virtual power plants, which are aggregations of rooftop solar-charged batteries, EV chargers, smart thermostats and other controllable devices. Both bills were authored by state Sen. Josh Becker.

SB 913 instructs the California Public Utilities Commission and the California Independent System Operator to better measure and reward the grid value of customer-owned devices that cut demand during peak moments, with the aim of reducing reliance on gas-fired peaker plants that run only a few hours a year. SB 905 instructs the CPUC to require utilities to measure and report how efficiently they use their existing grids. Canary Media describes that as a first step toward finding where virtual power plants could avoid grid overbuilding at lower cost. SB 905 also includes other utility cost-containment measures.

The report notes Newsom vetoed three virtual power plant bills last year, and that his administration has demanded funding cuts to the state's premier virtual power plant program, which may be unable to operate next year without a funding agreement. He also vetoed a bill on community solar-battery systems this session. Brad Heavner of the California Solar and Storage Association said implementation at the CPUC under the next governor will determine whether customers see lower bills.

This brief relies on one trade-press report; it does not cite the bill text.

Official source: Canary Media ↗