REDUCE Act

HR 8523 (the REDUCE Act) requires electricity transmission organizations to allow aggregators of retail customers to submit bids based on their flexible electricity demand into power markets. This applies specifically to customers of utilities that distributed over 4 million megawatt-hours in the previous fiscal year. The law mandates that transmission organizations update their rules to permit this bidding within 12 months of enactment, following federal guidelines. The bill aims to expand how demand flexibility - like adjusting electricity use - can participate in grid management and pricing.