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