The California Public Utilities Commission (CPUC) has directed Pacific Gas and Electric, Southern California Edison, and San Diego Gas & Electric to propose a coordinated framework for managing distributed energy resources (DERs), including customer-sited batteries, electric vehicles, and other technologies that can shift when and how electricity is used.
The framework would let California utilities, acting as distribution system operators, use visibility, forecasting, and scheduling tools to identify local grid needs and signal eligible resources to provide verifiable services.
The utilities must develop the proposal with stakeholders through a working group. It has to cover open and interoperable communications, data sharing, cybersecurity, customer protections, and clear participation pathways, and it must address how customers, energy service providers, community choice aggregators, and other providers can take part without unnecessary barriers or duplicative compensation.
The decision also requires utilities to strengthen distribution planning by evaluating how flexible demand can ease grid constraints. Beginning with the 2028-2029 planning cycle, they must add load flexibility scenarios to their annual distribution planning, alongside the existing low-, base-, and high-demand scenarios.
“There’s more work ahead as we build a future grid that works for everyone, and I will be particularly interested in proposals regarding affordability and competitive neutrality when it comes time to review utility applications,” said CPUC President John Reynolds, in a statement.
The CPUC says the changes could help the state reduce or defer costly infrastructure upgrades and may produce ratepayer savings.
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