The California Legislature passed SB 913, which would create new pathways for networks of residential batteries and other customer-owned energy resources to receive compensation for supplying capacity needed to maintain grid reliability.
The bill would require the California Public Utilities Commission (CPUC) to enhance existing pathways for aggregated distributed energy resources to qualify as capacity under California’s Resource Adequacy program. The CPUC would coordinate with the California Energy Commission (CEC) and the California Independent System Operator (CAISO) and complete the work by June 30, 2028.
The bill would permit utilities, electric service providers, and community choice aggregators to use aggregated customer resources to satisfy resource-adequacy obligations and other CPUC procurement requirements.
The CPUC would also have to develop rules allowing qualifying capacity to reflect energy exported beyond a customer’s utility meter, not merely reductions in the customer’s own electricity consumption.
California’s Resource Adequacy program determines which resources utilities and community choice aggregators can count on to keep the grid reliable. Allowing aggregated distributed resources to compete for capacity payments could turn thousands of customer batteries and other devices into formal grid resources and reduce reliance on new gas plants or other capacity procured primarily for peak demand.
The legislation could move virtual power plants from largely incentive-based demand-response programs toward a more permanent role in California’s reliability market.
The Senate voted 40–0 on August 27 to approve Assembly amendments. The Assembly passed the bill on August 25, 2026. The bill now goes to Governor Gavin Newsom for consideration.