REDUCE Act

The REDUCE Act requires transmission organizations to allow aggregators - companies that combine electricity demand from multiple retail customers - to bid into power markets. This applies specifically to utilities distributing over 4 million megawatt-hours annually, overriding state laws that previously blocked such participation. The Federal Energy Regulatory Commission must issue implementing rules within one year of the law's passage. The bill directly affects large utilities and demand aggregation companies by enabling new market participation mechanisms.