California
California budget cuts could decimate key virtual power plant programs
This has made the DSGS program a key target for VPP developers in California, with $295 million budgeted for participants in 2022 and 2023. About 1,300 participants in DSGS-funded programs were able to reduce peak load by about 315 megawatts and provide more than 3,100 megawatt-hours of emergency response during hot summer weather in the summer of 2022, according to the companies that signed on to the protest letter to state lawmakers. Those companies have planned to “provide much more emergency capacity in the summer of 2024.”
“This newly expanded and re-designed program was finally launching for a full summer in 2024,” Perez of Advanced Energy United told Canary Media in an email. But the proposed budget cuts would eliminate $186.5 million in DSGS funding through this year and next, leaving only $75 million deferred to 2025 and 2026, according to industry groups tracking the latest budget figures. That would “severely impact” participating companies’ efforts, since they “need to have predictability to invest in market development, customer onboarding, and program setup,” the letter stated.
“If the proposed reductions go through, I don’t know how that will affect new and current participants,” said Cisco DeVries, executive vice president of Renew Home, the company formed by the merger of Google Nest’s smart thermostat energy-shifting service Nest Renew and California-based residential demand response aggregator Ohmconnect. Renew Home works with hundreds of thousands of households in California and participated in the DSGS program in 2022 and 2023.
The potential for VPPs in California is particularly strong, given the state’s preponderance of homes equipped with rooftop solar, backup batteries, smart thermostats, and electric vehicle chargers. In an April report, consultancy Brattle Group projected that VPPs could enable $550 million per year in consumer savings in California and provide in excess of 15 percent of the state’s peak grid demand by 2035.
Jigar Shah, head of the U.S. Department of Energy’s Loan Programs Office, which has issued billions of dollars in loan guarantees to support VPP deployments, highlighted that report in an April social media post, citing it as evidence that VPPs are the “lowest cost way” for utilities and regulators “to handle load growth and lower rates for everyone.”
But with the future of the DSGS program now very much in doubt, it’s unclear how California utility regulators and policymakers will enable that potential, DeVries said. “A big part of how we were going to figure out the next phase of demand response and virtual power plants in the state of California was the CEC programs, both DSGS and others,” he said. “So now we’re back to the drawing board. We don’t have the answers to what’s going to happen next.”
That’s a problem for a state that’s simultaneously trying to control electric utility rates that are among the highest and the fastest-rising in the country, keep the lights on during stressful grid events, and “retire a bunch of dirty old fossil fuel plants,” he said.
The missing money for alternatives to fossil fuels
To date, the lion’s share of California’s emergency-grid-support funds has gone toward extending the lifespan of its fossil fuel plants. The state has already spent about $426 million from those emergency programs to build or procure “emergency and temporary” power generators that burn fossil gas or diesel fuel, according to a May report from the state Department of Water Resources, which administers that program.
Another $1.3 billion in funding has been promised to companies that own and operate aging fossil-gas-fired “peaker” power plants in Southern California that were slated to be closed in 2020 under environmental regulations. Those plants are a particularly egregious target for state funding, environmental advocates said, given that they burden surrounding communities with harmful air pollution, and have been unprofitable to operate absent state subsidies.
What’s more, these power plants take days to ramp up in advance of predicted grid emergencies and are much more expensive than the capacity that can be enlisted through the DSGS program, which consists of customers that can almost instantaneously reduce power use or commit battery power to helping the grid, Perez said.
The proposed cuts to DSGS and DEBA aren’t the only state funds for cleaner alternatives that might fail to materialize. Part of the emergency plan laid out in 2022 called for directing $900 million to incentives to fund battery installations in lower-income and disadvantaged communities. But only $280 million of that has been set aside in the state budget.
“To maintain commitments to fossil fuel resources and cut back on deployment of new resources — clean resources that could be used for emergencies — is short-term thinking and just seems kind of backwards,” said Ed Smeloff, managing director of the regulatory team at nonprofit group Vote Solar. “It’s important to have strategic reserves for the future, because we are going to have extreme weather events. That’s a fact of life. But those reserves should be compatible with the state’s clean energy policies.”
It’s possible that state leaders aim to instead rely on the larger amount of utility-scale batteries to solve California’s grid problems, Smeloff said. In April, Newsom announced that California has deployed 10 gigawatts of installed battery capacity, a 13-fold increase from five years ago, and enough to meet about 20 percent of the peak electricity demand for the grid managed by the California Independent System Operator (CAISO).
But it’s not clear that California can continue that breakneck pace of utility-scale battery expansion in the face of its crowded transmission-grid interconnection queues, Smeloff said. Nor is relying on large-scale batteries alone the most cost-effective path for the state. A 2020 report from Lawrence Berkeley National Laboratory found that smarter utilization of demand-side resources could replace the need for billions of dollars’ worth of batteries and other utility-scale resources.
At the same time, California residents are being encouraged by state clean energy and climate policies to buy electric appliances, heat pumps, and EVs as rising electric rates make them more costly to operate, he said. Finding some way for those customers to earn money for programming those devices to relieve grid peaks is a vital counterbalance to the higher electric bills they’ll face as they electrify.
It’s also likely that state leaders believe that the grid emergencies of 2020 and 2022 aren’t as dire today, Smeloff said. An assessment from CAISO last month indicates that the state has a surplus of resources to meet expected peak grid demands this summer, he noted — a stronger position, at least on paper, than the state has had in years.
But as McMahon of the California Energy Storage Association noted, “We had a mild summer last year. But what happens the year after that if we haven’t planned for it?”
LOS ANGELES (AP) — In the wide-open race for California governor, billionaire Tom Steyer is on a spending binge.
The hedge fund manager-turned-liberal activist is using his personal fortune to saturate TV screens and mobile phones with advertising, while his competitors accuse him of trying to use his vast wealth to buy the state’s most powerful job.
Steyer’s ads — in which he promises to bring down household costs or rails against federal immigration raids — appear inescapable at times in heavily Democratic Los Angeles, the state’s largest media market. Data compiled by advertising tracker AdImpact show Steyer has spent or booked over $115 million in ads for broadcast TV, cable and radio — nearly 30 times the amount of his nearest Democratic rival.
If he makes it through the June 2 primary election, Steyer could easily eclipse the 2010 record set by Republican Meg Whitman, who spent $178.5 million in a losing bid for governor, much of it her own money. At the time, it was the costliest campaign for statewide office in the nation’s history.
Even when ad buys from all his major competitors are combined, along with ad purchases by independent committees supporting candidates, Steyer is outspending the field by tens of millions of dollars.
“Billionaire money is flooding our state in an attempt to buy this election,” former U.S. Rep. Katie Porter, one of Steyer’s chief rivals, warned her supporters this month.
Mail-in ballots are set to go out to voters next month. Steyer is among a crowd of candidates hoping to seize a spotlight after former Democratic U.S. Rep. Eric Swalwell’s dramatic departure from the race following sexual assault allegations that he denies.
But while Steyer has ticked up in polling amid his spending splurge, he has not broken away from the field, leaving some wondering if he’s getting value for his dollars.
“If your first round of ads doesn’t move you dramatically (in the polls), the third, fourth, fifth, six, seventh and eighth rounds won’t either,” said veteran Democratic strategist Bill Carrick, who for years advised the late Democratic U.S. Sen. Dianne Feinstein. “There is something inherently holding Steyer back.”
In recent prior campaigns for governor, at this stage a leading candidate was taking control of the race. This year, voters appear to be shrugging at a contest that lacks a star candidate among seven leading Democrats and two Republicans.
“Somehow the campaign is frozen,” Carrick added.
History shows that money doesn’t always translate into votes.
Billionaire developer Rick Caruso spent over $100 million in 2022 in his bid to become Los Angeles mayor, much of it his own money, but he was handily defeated by Mayor Karen Bass, who spent a fraction of Caruso’s total. Billionaire former New York City Mayor Michael Bloomberg spent more than $1 billion of his own money on his 2020 presidential bid before dropping out. And Steyer’s money was unable to lift him into contention in the 2020 presidential contest, when he dropped out early in the year after a poor finish in the South Carolina primary.
Steyer has never held elected office.
In a 2019 interview with The Associated Press, Steyer was asked what he would say to people who think he’s trying to buy the presidency.
“I don’t think that’s possible,” Steyer said at the time, before adding, “I’m never going to apologize for succeeding in business. That’s America, right?”
His campaign did not respond directly when asked about similar criticism facing his run for governor.
“Tom now stands as the only Democrat with the grassroots energy, institutional backing and resources to advance to the general election,” spokesperson Kevin Liao said in a statement.
The governor’s race was recently reordered by two developments: Swalwell, a leading Democrat, abruptly withdrew from the race then resigned from Congress, following sexual assault allegations. Meanwhile, President Donald Trump endorsed conservative commentator Steve Hilton.
Still, there is no clear leader.
Polling in late March and early April by the nonpartisan Public Policy Institute of California found a cluster of candidates in close competition: Democrats Steyer and Porter, Republicans Hilton and Chad Bianco, and Swalwell. Other candidates were trailing. The polling was conducted before Swalwell withdrew.
Democrats have feared the party’s large number of candidates could lead to them getting shut out of the general election in November. That’s because California has a primary system in which only the top two vote-getters advance to the general election, regardless of party.
Leading Democrats are all claiming to have picked up support since Swalwell’s exit. Steyer nabbed one plum endorsement, when the influential California Teachers Association, which previously backed Swalwell, recommended him.
In his ads, Steyer promises to “abolish” U.S. Immigration and Customs Enforcement, which has been staging raids across California. In another, he laments the state’s punishing cost of housing, “Everybody needs an affordable place to live,” he says.
Rapper was stabbed 16 times by fellow inmate in May 2025 while 10-year sentence in Megan Thee Stallion shooting case
Tory Lanez has filed a $100 million lawsuit against the California Department of Corrections stemming from a May 2025 incident where the rapper was stabbed in prison.
Lanez — born Daystar Peterson and currently serving a 10-year sentence after being found guilty in the Megan Thee Stallion shooting case — also sued the warden and guards at the California Correctional Institute in Tehachapi, where the rapper was stabbed 16 times in an “unprovoked life-threatening attack” by another inmate, the lawsuit states.
Peterson was hospitalized following the May 2025 incident, suffering a collapsed lung among stab wounds to his back, torso, and head.
According to the Associated Press, the lawsuit criticized the Department of Corrections for housing Peterson with fellow inmate and alleged attacker Santino Casio, who was serving a life sentence for second-degree murder. “The choice to house Casio with Peterson was known or should have been a known danger,” the lawsuit said, adding that Tory Lanez’ “high-profile celebrity status” made him a target.
The lawsuit also said that prison guards were slow to respond to the shanking, and didn’t employ flash grenades or other measures to halt Casio’s attack.; Casio was not charged for stabbing Peterson, the Associated Press notes.
Lanez, who following his hospitalization was transferred to San Luis Obispo County’s California Men’s Colony, also alleges in the lawsuit that he never received his possessions from the California Correctional Institute in Tehachapi, including songbooks filled with lyrics to his unreleased music.
Lanez is serving a 10-year prison sentence for shooting Megan Thee Stallion in the foot during a confrontation in the summer of 2020. He was eventually convicted on several firearms charges, including assault with a firearm, in December 2022. In November 2025, his appeal was denied by a three-judge panel, and the 10-year sentence was upheld.
From one crackdown on hospice fraud to another.
A few weeks ago, the FBI arrested multiple people in Southern California that were accused of defrauding the government for millions of dollars.
In a more recent announcement last Thursday, California’s State Attorney General Rob Bonta held a press conference to announce a fraud bust of their own.
“Operation Skip Trace uncovered and ended a hospice fraud scheme that defrauded Medi-Cal of $267 million,” Bonta said. “So just to be clear, a quarter billion dollars over funds that are paid for by California taxpayers, funds that are meant to provide care to Californians in need. It is unacceptable. It is illegal and we will not stand for it.”
The operation saw a total of 21 suspects charged as a result and dismantled a major hospice fraud scheme, with two handguns and over $750 thousand in cash seized as well.
According to the state’s attorney general, this is just one of the many cases over the years the state has cracked down on.
“This is just the latest example of the California DOJ’s longstanding ongoing and successful efforts to combat hospice and medical fraud,” Bonta said. “We have been doing this work for years. We’ve been doing it successfully before certain people in this country decided to think about it for the first time. We will continue to do this work. Heads down, sleeves rolled up, important investigative work, prosecutorial work.”
He added to that by taking a shot at the Trump Administration’s latest fraud operations.
“While healthcare fraud might be President Trump’s shiny new political talking point, the California DOJ has been going after healthcare fraud since 1979,” Bonta said. “For decades, Trump is late to the party. Protecting taxpayer dollars and protecting programs sick and vulnerable Californians rely on have been our priority for nearly five decades.”
Governor Gavin Newsom also spoke out about this latest crackdown while taking a shot of his own at President Trump.
In a post to “X” the Governor’s Press Office wrote in part quote…
“California has been cracking down on hospice fraud long before Trump gutted oversight and pardoned the architect of the biggest health care fraud scheme in U.S. history.”
State Republicans have responded to this latest announcement from Attorney General Bonta, calling for a special session to demand accountability from the Governor on widespread fraud.
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