[USA] Newsom vetoes bill to improve load flexibility in California grid planning

As of October 1, 2025, California Governor Newsom vetoed a bill that would have required the state energy commission to evaluate new and existing load management mechanisms and authorize it to include those findings in its biennial integrated energy policy report. [1] AB44 directed the commission to adopt a set of technical requirements and load modification protocols upfront to provide the load-serving entity with an option to reduce or modify its electrical demand forecast. In a brief statement, the governor said that the bill does not align with the California Public Utility Commission’s Resource Adequacy framework, so the requirements would not improve grid reliability planning and create uncertainty around energy resource planning and procurement processes. Many of the provisions were welcomed by clean energy advocates and utilities, though some lamented the loss of funding for the state’s grid reliability programs, including one program dubbed the largest virtual power plant in the world.

[1] https://www.gov.ca.gov/wp-content/uploads/2025/10/AB-44-Veto.pdf