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Senate panel hears debate over SB 540 to set guardrails for joining a Western regional energy market
Summary
Senate committee reviewed SB 540, which would let California join a Western regional energy market only after strict protections are added to preserve state authority, prevent cost shifts to California ratepayers and allow penalty‑free withdrawal.
Senators and witnesses spent an extended portion of the Judiciary Committee hearing debating SB 540 on whether California should create statutory guardrails before deciding to join a broader regional power market. The bill would allow California Independent System Operator (CAISO) participation in a regional organization — only after specified protections are included in governing documents and FERC‑approved tariffs, and no earlier than 2028. Supporters argued the move would increase reliability, bring down costs and reduce emissions; opponents cautioned it could surrender state authority and expose California to federal intervention.
Senator Becker, the bill's joint author, told the committee SB 540 builds on the existing Western Energy Imbalance Market (WEM) and would permit participation in a regional market “if and only if it meets extensive guardrails.” Becker said the WEM has produced roughly $6.6 billion in savings over the last decade with about $2.2 billion directly benefitting…
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