This bill establishes a Distributed Power Plant (DPP) program that requires electric utilities to coordinate aggregated distributed energy resources (DERs) to provide essential grid services, under the oversight of the Public Utilities Commission. Key provisions include a mandate for utilities to submit DPP program proposals for stakeholder input and approval within 100 days, as well as upfront incentive payments for DERs that aid in peak load reduction. The program will encompass various technologies, such as batteries and electric vehicles, and will define the roles of aggregators and direct participants while specifying performance payment structures. The bill also emphasizes equity by providing higher upfront payments for low- and moderate-income customers and allowing participants to secure performance payment rates for five years.

Additionally, the bill introduces new definitions and operational parameters for the DPP program, including performance targets and cost recovery mechanisms for utilities. It anticipates increased administrative responsibilities for the Department of Energy, which may require specialized consultants and potentially one full-time position, with costs estimated between $100,000 to $500,000. The Public Utilities Commission will need to conduct proceedings to review and approve DPP proposals, which may necessitate two additional full-time positions starting January 1, 2027, with projected costs of $127,000 in FY 2027 and increasing in subsequent years. Overall, the bill aims to enhance the regulatory framework for distributed energy resources while addressing the administrative and staffing needs of the involved agencies.