California's soaring electricity bills have made affordability a driving force in energy policy.

Gov. Gavin Newsom's latest move is a package of electricity-affordability bills built around home batteries and other smart devices that could help lower and reduce the need for gas-fired backup plants.

Here's what to know

One part of the package Newsom signed would give virtual power plants a larger role in California, according to Canary Media. These systems coordinate customer-owned devices such as rooftop solar-charged batteries, EV chargers, and smart thermostats to reduce grid stress during costly peak periods.

The key measures are Senate Bill 905 and Senate Bill 913, both authored by state Sen. Josh Becker (D). Becker said the aim is to make use of the "millions of batteries, electric vehicles, smart thermostats, and other technologies" that Californians already own.

Home electricity rates at California's three major investor-owned utilities have climbed to roughly double the U.S. average.

Battery storage is one of the best ways to protect your home during outages, cut energy costs, and, in some cases, go off-grid. EnergySage can help you explore home battery storage options and get competitive installation estimates, and It has teamed up with the electrification brand Qmerit to guarantee you the best price on home battery storage solutions.

Pila is another option, offering plug-and-play battery backup units priced at a fraction of what a whole-home system would cost. These smaller setups won't power every appliance in a house, but they can still provide real protection when the grid goes down.

More background

California has not always embraced virtual power plants. Newsom vetoed three VPP bills last year, and his administration pushed to cut funding for a major state VPP program, Canary Media reported.

To consumer advocates, the change appears tied to mounting frustration over utility prices. Mark Toney, executive director of The Utility Reform Network, said, "I'd say we saw today a lot of evidence that Gov. Newsom has really prioritized affordability and accountability to an increased extent."

Kat Lockwood, CEO of The Climate Center, echoed that view. "Governor Newsom is delivering on his promise to bring down electricity costs and clean up climate pollution," she said.

SB 913 tells the California Public Utilities Commission and the California Independent System Operator to better recognize and pay for the grid value of customer-owned devices, especially during hot evening periods when demand jumps, and utilities might otherwise turn to aging gas "peaker" plants.

What's being done?

SB 905 isn't focused only on virtual power plants. The bill also calls for utilities to more accurately measure how much of the existing grid they use, which could weaken arguments for costly overbuilding and instead push regulators toward cheaper options like batteries and demand shifting.

The package also includes other measures. Assembly Bill 2493 directs the CPUC to monitor transmission buildouts and step in if projects fall behind schedule, while Senate Bill 1098 limits utilities' use of balancing and memorandum accounts, which Toney said had become overused and harder for regulators to track.

Batteries are increasingly valuable for more than backup power and could eventually earn buyers money through grid programs if utilities and regulators follow through.

How much customers save, though, may come down to implementation. As Brad Heavner, executive director of the California Solar and Storage Association, cautioned, "Implementation of the bill at the CPUC under the next governor will determine whether customers see lower bills."

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