REDUCE Act

This bill opens wholesale power markets to groups that bundle the flexible electricity use of many homes and businesses. These “aggregators” could offer demand flexibility (like shifting when devices run) as a product in those markets. It tells grid operators to accept these bids even if a state law or regulator had blocked them before. It applies to customers of larger utilities that sold more than 4 million megawatt-hours last year, and it gives the federal energy regulator 12 months to set the final rules after the law takes effect.

In plain terms, this aims to help keep the grid stable and lower costs by letting groups of customers get paid for using power at better times. It also supports adding more clean energy by making demand more flexible when the sun and wind vary.

• Who is affected: grid operators, aggregators, and customers served by large electric utilities.
• What changes: grid operators must allow bids from aggregators for demand flexibility, despite any state-level ban, following applicable market rules.
• When: federal rules must be issued within 12 months after the law is enacted.