[{"_1":2,"_100":-5,"_101":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76,88],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6585660,"mediaKeyId","5603476-12802cc270757b24802b001464e7b0de","parentId",5603476,"title","Lawmakers press for funding of demand flexibility, DSGS and energy efficiency to reduce peak costs","audioSeconds",3921,"startMs",278025,"endMs",4199445,"viewUrl","/Search/View?dp=1&key=5603476-12802cc270757b24802b001464e7b0de&start=278&end=4199","thumbnailUrl","https://assets.pipeline.soar.com/5603476-12802cc270757b24802b001464e7b0de/thumbnail_278025.jpg","articleUrl","/articles/6585660/California/Lawmakers-press-for-funding-of-demand-flexibility-DSGS-and-energy-efficiency-to-reduce-peak-costs","mediaUrl","https://secure.pipeline.soar.com/6585660-3d753f4b729a56d1a286a410becd8e81/orig.mp4?Expires=1771160340&Signature=Sl5eX3WwlXvQ6Hes5ry~A7~dHgqvGQauUG2kKHOKZDjXwtOt50ZS-45xWCnwKaDgfU0uFtGuqC~EG7lW2hwL-uBqcw0F4GL9wjQfYC9pGBF6XuKl1b~98Upx6Oin2W3TTqceKgZ2y1AtHsu5URSRNdgjoDq8UtRDJFIheFvaBja-L9XNoeWltjX3nR0xcKlyfeDwSgoVvm1G0im0Qy3hbHXyn--eT0LHvgKQZiLUVlzKLRfieTvYVMV4wUSf7po-6rybqiJ6--kQtFgTIU3-suJ-btVBBJMZi7TaFdgQ79Yq4BvxTOcAys3FERPlVY8TyhIWBkuzOam3D~KfVvdFwg__&Key-Pair-Id=KUT5TJCACFTXG","author","California State Senate","date","2025-08-19T00:00:00Z","article","Lawmakers at a Senate oversight hearing pushed state agencies and the administration to prioritize funding for demand‑side programs — including the Department of Water Resources’ Direct Supply Grid Support (DSGS) program, virtual power plants and energy efficiency — as cost‑effective ways to cut peak demand and reduce ratepayer bills.

“The electron that isn't used…is the cheapest form of energy,” Vince Huert Maggio of MCE told the committee during public comment, summarizing an argument repeated in testimony that demand‑side measures both improve reliability and lower costs.

Why it matters: Agencies and stakeholders argued that demand‑side and behind‑the‑meter resources can substitute for costly supply‑side procurement when properly deployed and funded. The CEC and CPUC described a three‑part role for demand flexibility: (1) “demand modifiers” using rate design and efficiency to permanently reshape load (CEC described roughly 3,000 MW of potential load shift from that category), (2) qualifying demand‑side resources in resource adequacy so they can be contracted as supply, and (3) operational programs for emergency response.

Key hearing details:

• DSGS and VPPs: Vice Chair Sibagunda and CPUC staff described the DSGS program’s progress; CEC noted more than 1 gigawatt of subscription and that a recent activation produced about 650 MW of actual response. Committee members were told the current budget did not include continued DSGS funding, and several senators and commenters urged the administration and Legislature to identify $50–$100 million in near‑term funding to scale the program and related virtual power plant efforts.

• Demand aggregation and RA value: Agencies described a “slice‑of‑day” approach in the resource adequacy program to ensure capacity is available in each hour; they also noted opportunities to qualify behind‑the‑meter batteries and aggregated demand as resource adequacy capacity, though those resources currently represent smaller volumes (hundreds of MW) compared with the 3,000‑MW demand‑modifier estimate.

• Energy efficiency economics: Multiple witnesses cited CPUC and program reporting showing energy efficiency remains highly cost effective (cited benefit roughly $8 returned per $1 invested). Commenters and agency staff said continuing EE investments reduces long‑run procurement needs and can avoid upstream system costs.

• Funding tradeoffs and duplication concerns: CPUC President Alice Reynolds cautioned the committee about potential overlap and “double dipping” — where customers or program participants might be compensated from multiple sources for the same capacity — and emphasized the need to design programs to avoid shifting costs to ratepayers without new benefits.

Public commenters and several senators urged the legislature to restore or expand DSGS funding as a near‑term, cost‑effective complement to procurement and transmission investments. Advocates recommended appropriating at least tens of millions of dollars this budget cycle to maintain DSGS and related DEVA (distributed energy backup assets) pilots while agencies refine participation and measurement rules.

The committee asked agencies for written analyses showing incremental costs and benefits of DSGS expansions and the degree to which additional funding would reduce the need for other supply‑side spending.","mediaType","Video","parentTitle","Joint Hearing Select Committee on Native American Affairs and Joint Legislative Audit Committee","oneSentenceSummary","Committee members and public commenters urged the Legislature and administration to fund demand‑side programs, including the DSGS program and expanded efficiency measures, arguing those measures can reduce peak demand and lower customer bills at lower cost than new supply.","taxTitle","California State Senate, Senate, Legislative, California","taxId",77650,"location","California","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6585665,"PG&E tells Senate Diablo Canyon meets federal safety reviews; lawmakers press for firm loan repayment, coastal permits and local tax fixes",1466,8025250,9491575,"/Search/View?dp=1&key=5603476-12802cc270757b24802b001464e7b0de&start=8025&end=9491","https://assets.pipeline.soar.com/5603476-12802cc270757b24802b001464e7b0de/thumbnail_8025250.jpg","/articles/6585665/California/PGE-tells-Senate-Diablo-Canyon-meets-federal-safety-reviews-lawmakers-press-for-firm-loan-repayment-coastal-permits-and-local-tax-fixes","https://secure.pipeline.soar.com/6585665-f57c905f5a84e7f8a5cacb2034326db3/orig.mp4?Expires=1771160340&Signature=Nfl0AKqPnBRKl6w-YUx56lt467VhWbjRlvWZ-kogmZnlBy037kLYOvVd1nM4vHJSt2V-KrwxDzWRvaijWqokZOIZNpJFPwUfPxQAIVzJaQibsTgPUi0vaBFs226KsIwMiZ5hUluhrWDeP59bpr07~r219CnY0O9i9Wp8i7Ba7VzglbbZgoqP9T5e1pfMQd2AxRgcE19dhOkISoiKXk3Hhe7eCJFwEsNzLLWVFoo32BpCeCPyHFk3wNDURvHOEeIzigCxTqeuDM1COvdGh50pAC~5uMJoxgVD1ApOLbR00udC19YoTLr9eIx5VD~WAw~mZoJ0gDQ2ZaC72RVHE4Jgbw__&Key-Pair-Id=KUT5TJCACFTXG","Pacific Gas & Electric Company told a State Senate oversight hearing that Diablo Canyon Power Plant meets the Nuclear Regulatory Commission’s safety and environmental requirements for continued operation, while senators pressed PG&E and state officials for clearer guarantees about loan repayment, coastal approvals, seismic testing and local tax impacts.

“Unit 1 and Unit 2’s average capacity factor…was 94% last year. That's rain or shine — available night and day, 24 hours a day,” Maureen Zawalek, PG&E vice president for nuclear business and technical services, told the committee. Zawalek said PG&E filed a federal license renewal application for up to 20 additional years in November 2023 and that the NRC issued an environmental impact statement in June 2025 that supports continued operations.

Why this matters: SB 846 authorized a five‑year extension of Diablo Canyon operations while imposing reporting, seismic and other implementation conditions and created a state loan (administered by the Department of Water Resources) that PG&E will repay — in part — using federal civil nuclear credits. Committee members said the state must be confident the loan will be repaid and that local governments should not be left with revenue shortfalls.

Key points from PG&E and senators:

• Loan and federal credits: PG&E and DWR said DOE civil nuclear credits were pursued and a credit‑payment agreement was signed in January 2024; DWR and PG&E said credits will be placed in escrow and used to repay the DWR loan. DWR staff told the committee the first DOE credit could be awarded at the end of the year once the extended‑operations period begins. Senator John Laird pressed for a binding path to make sure any remaining shortfall in loan repayment would not fall to taxpayers; PG&E and DWR did not provide a legislative guarantee that an identified remaining gap would be covered by non‑taxpayer sources.

• Seismic and materials work: PG&E said the Nuclear Regulatory Commission documented safety findings in June 2025 and that a reactor vessel surveillance capsule pulled this spring will provide an additional confirmation. Senator Laird noted capsule test results would not be available until April 2026; PG&E said the NRC’s June 2025 safety evaluation already concluded the plant is acceptable to operate through extended license terms, and that the capsule will provide further confirmation.

• Spent fuel and storage: PG&E told the committee the site has adequate on‑site storage capacity to hold spent fuel for 60 years (a mix of pool and dry storage arrangements consistent with federal safety assessments).

• Coastal permits and local tax impacts: PG&E has an ongoing application process with the California Coastal Commission and the regional water board for Clean Water Act (401) certification; the company said it is working with commissions and expects decisions early next year. Senators indicated the Coastal Commission completeness clock tied to SB 846 had not started in the sense of a final, “deemed complete” filing, and asked PG&E to expedite the outstanding items. The committee also discussed the unitary property tax revenue that helped local governments after shutdown was anticipated; PG&E said it and the state previously provided $185 million to San Luis Obispo County as planning and mitigation funding and that future changes to unitary tax treatment would require legislative action.

• Economic and GHG impacts: PG&E cited an analysis that keeping Diablo online through the current extension reduces statewide energy costs and yields an estimated $3.2 billion in customer benefits through 2030, and annualized environmental benefits equivalent to avoiding greenhouse gas emissions from about 1.6 million cars across the extension period.

Senators said the hearing left several items requiring follow‑up — most prominently a concrete, legislative or contractual assurance on how any remaining loan shortfall would be covered so taxpayers and local governments would not face a liability. The panel also requested further, written updates on Coastal Commission application status, the capsule test schedule and any outstanding deficiencies identified by independent safety reviewers.","PG&E said Diablo Canyon meets federal NRC safety evaluations and submitted a 20‑year federal license renewal; senators pressed for guarantees that the state loan will be repaid without taxpayer exposure, asked about coastal and seismic reviews and local unitary tax consequences.",{"_33":89,"_35":36,"_37":38,"_39":90,"_41":91,"_43":92,"_45":93,"_47":94,"_49":95,"_51":96,"_53":97,"_55":56,"_57":58,"_59":98,"_61":62,"_63":64,"_65":99,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6585670,"Agencies say California is 'cautiously optimistic' on summer reliability but warn wildfire and heat risks remain",3642,18435,3660435,"/Search/View?dp=1&key=5603476-12802cc270757b24802b001464e7b0de&start=18&end=3660","https://assets.pipeline.soar.com/5603476-12802cc270757b24802b001464e7b0de/thumbnail_18435.jpg","/articles/6585670/California/Agencies-say-California-is-cautiously-optimistic-on-summer-reliability-but-warn-wildfire-and-heat-risks-remain","https://secure.pipeline.soar.com/6585670-a87a41a57b2723b1ec9efb96dc091d4f/orig.mp4?Expires=1771160340&Signature=R4u9pmecaSs6RPRuQVbP-btwEeIYtzM4Nt7kcCOniLN3767C~e11Vf6JJ9bti75yu4MYjnL6dyMIg2EypMER-kdPrOdC7sk646VRa1HkQNGiKZoUwu2hgGgMDDT1g6s8pRHs3LXJmzAzmQKrLpnB17MWDkafaFcHlZoA3pYocg-3kAUsJzLl8FN7wseVOU-QW-wfT5p01jrqu51zgJuyckx6rsXV-49TA1i-2UkIt9oL1aIy-buSIAOF0bQKoU8MIlcHAPzKGWsgLmDpzJMpOLOaOoThkgf4mIstBjs9SgSO0p~xH45RcG4X-X8MllrERYfWyvB3baqMc-rRL1sZ1A__&Key-Pair-Id=KUT5TJCACFTXG","State energy regulators and the state’s grid operator told a California State Senate committee that the state enters the high‑demand months from a stronger position than after the rotating outages of 2020, but that risks from extended heat waves and wildfires could still stress the system.

“Agencies have adopted the word ‘cautiously optimistic,’” CEC Vice Chair Sibagunda told the committee during an Aug. oversight hearing called to review work on electricity reliability and provisions of SB 846 concerning Diablo Canyon. The California Independent System Operator’s president, Elliot Mainzer, said “so far this year, no flex alerts and no energy emergency alerts.”

The update matters because California’s net‑peak demand — the hours after solar generation falls but air‑conditioning load remains high — remains the primary reliability challenge, and agencies say a mix of new resources plus demand‑side programs are the tools most likely to avoid outages.

CAISO, the California Public Utilities Commission, the California Energy Commission and the Department of Water Resources reported several concrete changes since 2020: state utilities and other load serving entities have contracted nearly 18.8 gigawatts of new clean capacity under CPUC procurement orders; California has added thousands of megawatts of battery storage (CEC and agency presentations cited roughly 12,000 MW added since 2018 and CAISO gave a figure of about 13,500 MW of storage in its footprint); and last year procurement and interconnection activity produced a record build (nearly 7,000 MW of clean resources cited for one recent year). Agencies said the increase in storage has helped cover evening net‑peak hours when solar output declines.

Officials also identified remaining contingencies. The state retains a portfolio of near‑term emergency resources — roughly 4,000 MW in agency presentations — that can be dispatched in strain conditions, the largest component of which are once‑through‑cooling units managed by DWR (about 3,000 MW). DWR Deputy Director Delphine Ho told senators the DWR strategic reserve is primarily the once‑through‑cooling resources and short‑start assets under contract through 2026.

Agencies described three complementary paths for addressing reliability and affordability going forward: grow (more clean resources), share (regional market participation such as EDAM) and shift (demand flexibility and time‑of‑use pricing). Vice Chair Sibagunda described demand flexibility as one of three “buckets” of opportunity and said a 7,000 MW statewide goal for load‑shifting includes roughly 3,000 MW obtainable through rate design and other behind‑the‑meter measures.

The committee also heard updates on operational changes to speed interconnection and transmission permitting. CAISO described major reforms to the interconnection queue that removed speculative projects and prioritized study‑ready projects; CAISO said about 73% of a large cluster of requests were removed from study after implementing new readiness criteria. CPUC said it has adopted a new process to accelerate permitting for transmission upgrade projects (general order referenced as GO 131e) and to better coordinate environmental reviews.

Committee members pressed agencies on remaining weak points: exposure to a prolonged, West‑wide heat wave coincident with a catastrophic transmission event or large fire, localized transmission constraints that can force exports or curtailment, and uncertainty driven by federal trade and tax policy affecting supply chains for long‑lead resources.

Agencies urged continued emphasis on planning and project execution, noting the need to track contracted projects through interconnection and energization. “We have to continue doing the coordinated planning, and continue onboarding and energizing not only the transmission facilities, but also the other innovative grid‑enhancing technologies,” CAISO’s Mainzer told the committee.

Looking ahead, regulators said they expect to continue monitoring summer conditions, tracking progress on procurement and interconnection, and pressing for budgeted or statutory support for demand‑side programs. Several senators asked for clearer probability modeling of blackout risk in the near and midterm; agencies said work on refined probabilistic planning is under way and that the results will be useful for forthcoming policy choices.

The committee held the hearing to receive the reliability status update and to review SB 846 implementation. Senators said they will continue oversight as projects move from contract to construction and operation.","At an oversight hearing, CPUC, CEC, CAISO and DWR told the State Senate they are better prepared than in 2020 but flagged remaining risks from extreme heat, wildfire and transmission constraints; storage and new procurement have improved supply, while demand flexibility remains a key near‑term tool.","actionData","errors"]

Article not found

Lawmakers press for funding of demand flexibility, DSGS and energy efficiency to reduce peak costs

PG&E tells Senate Diablo Canyon meets federal safety reviews; lawmakers press for firm loan repayment, coastal permits and local tax fixes

Agencies say California is 'cautiously optimistic' on summer reliability but warn wildfire and heat risks remain