What California’s grid utilization move says about energy affordability

California recently passed a law (SB905) pushing utilities to make better use of the power grid they already have before building new poles, wires, and plants — new infrastructure that often shows up as higher charges on monthly electric bills. The law asks the state's utility regulator to develop ways to measure how well utilities are using their grids, though it sets no firm deadline and doesn't require enforcement. Virginia passed a similar but stricter law earlier this year.

A second California law, SB913, could matter more directly for anyone with home batteries or solar. It opens a path for battery storage systems and "virtual power plants" — networks of home batteries and other small energy devices working together — to get paid through the state's power-reliability market, the same one that currently relies heavily on gas-fired plants. That could make these smaller, distributed systems more competitive and more common across the grid.

California's law also directs regulators to look at reducing utilities' guaranteed profit margins on certain projects, like burying power lines, and to consider cheaper financing options, such as state-backed bonds, instead of relying solely on shareholder funding. Utilities like PG&E say the move could create uncertainty around financing investments the grid needs. Advocates counter that using the existing grid more efficiently, rather than building new infrastructure right away, is one of the clearest ways to hold down electricity costs for households. For homeowners, the immediate impact is on the horizon rather than today: it may be a few years before these changes show up as any real difference on your bill.