SACRAMENTO, CA — Today the Legislature voted to advance SB 541, legislation to capture cost-saving demand flexibility across California’s electric system. New and existing analysis — including a 2024 Brattle Group finding — estimates the state could avoid $550 million in electricity generation costs every year by deploying 7,500 MW of targeted load-shifting capacity through programs that use batteries, smart EV charging, thermostats, and other distributed energy resources. Another 2025 analysis by GridLab estimates that similar customer flexibility efforts could save customers an additional $13.7 billion between now and 2030 by reducing investments in the infrastructure that delivers electricity to customers.
“SB 541 is common sense: instead of building billions of dollars of new infrastructure to serve a few peak hours each year, let’s use the resources we already have more intelligently,” said Senator Josh Becker (D-Menlo Park), author of SB 541 and Chair of the Senate Energy, Utilities & Communications Committee. “This bill will lower costs for families and businesses, cut emissions, and make our grid more resilient — all by unlocking demand flexibility where it can do the most good.”
SB 541 directs state agencies to set clear, transparent targets for load-shifting and to monitor each electricity supplier’s progress at expanding programs that reduce peak demand. Key provisions include:
- Assigning load-shifting targets across electricity suppliers to capture 7,500 MW of demand flexibility by 2030;
- Requiring annual public reporting on progress so Californians can see who is delivering on commitments;
A growing body of independent research shows that shifting load away from a handful of extreme peak hours — using virtual power plants, smart charging, and other demand-side tools — can avoid or delay expensive grid builds and reduce the frequency with which high-cost fossil peaker plants set market prices.
“Making our grid smarter is one of the fastest ways to lower bills and improve reliability,” Becker added. “SB 541 is a practical, proven approach that turns everyday devices into savings for all ratepayers.”
SB 541 broad support from consumer advocates, clean-energy groups, labor partners, and industry stakeholders that recognize demand flexibility as a cornerstone of an affordable clean grid.
SB 541 now heads to the Governor for his signature.