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California budget cuts could decimate key virtual power plant programs

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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.

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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.

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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.

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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?”



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California may take weeks to finalize primary results. ‘This is normal’

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California may take weeks to finalize primary results. ‘This is normal’


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Although results from California’s primary election began rolling in on Tuesday, June 2, it could take days or even weeks before the final counts are certified. 

“This is normal … We have a process that by law ensures both voting rights and the integrity of elections, so I would call on all Californians to be patient,” Secretary of State Shirley N. Weber said in a June 2 news release.

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The Golden State’s lengthy vote-counting process has “become a national narrative about California elections,” according to Thad Kousser, a professor of political science at the University of California, San Diego.

“In California, it takes a long time to certify votes, to verify the signatures, to then count the ballots; all of that process takes a while,” Kousser said in an interview last week. “It may take a while for us to learn who the top candidates who emerge are.”

Here are some factors behind California’s lengthy vote-counting process. 

Mail-in ballots come with added verification step 

With each mail-in ballot cast, elections officials must compare the signature on a returned vote-by-mail envelope to the voter’s signature on their voter registration card. Various factors go into determining whether the signatures match, including the slant of the signature, whether it is printed or written in cursive, and the size, proportions, or scale. 

Vote-by-mail ballots were Californians’ preferred voting method in both the 2024 primary and general elections, with drop-off locations — such as ballot drop boxes and voting centers — the most popular way to return mail-in ballots. 

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During California’s 2024 primary, more than 7.7 million votes were cast statewide, and 90 percent of those were mail-in ballots. This means election officials had to verify the signatures on more than 6.8 million ballots before they could be counted. For the November 2024 general election, 80% of cast ballots, or about 13 million, were vote-by-mail. 

Reviewing conditional voter and provisional ballots 

California also allows for same-day voter registration, also known as conditional voter registration. Voters who need to register, or re-register, within 14 days of an election can do so at their county elections office, polling place, or vote center. These ballots will be processed and counted after the county elections office has completed the voter registration process. 

In addition to conditional voter ballots, there are provisional ballots that must be verified before they are counted. Voters cast provisional ballots for a wide array of reasons, including if their name does not appear at a polling place or if they’ve made a mistake on their ballot. After a voter casts a provisional ballot, it will not be counted until election officials have confirmed that the voter is registered to vote in that county and has not already voted in that election. 

Vote-by-mail ballots can be sent on Election Day 

Though state officials recommend voters mail their ballots sooner rather than later, state law allows vote-by-mail ballots postmarked by Election Day to be counted if they arrive within a specified window afterward, thereby extending the tallying process. 

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For the primary, ballots needed to be postmarked on or before June 2 and received by county elections office no later than June 10.  

California is, well, big 

California is the most populous state in the nation. And, as of May 18, a record total of 23,155,447 Californians were registered to vote. 

While not all registered voters are expected to have voted, county election officials estimate that more than 5 million ballots were cast statewide. 

When to expect final results 

Under state law, county elections officials are required to report the results for most ballots by June 15, or 13 days after the election, according to Weber. However, some ballots can take counties up to 30 days to count every ballot and then conduct a post-election audit. 

State law requires county elections officials to report final official results to state officials July 3. State officials then have until July 10 to certify the results of the election.

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California’s race for governor and other key primaries remain unsettled as vote count continues

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California’s race for governor and other key primaries remain unsettled as vote count continues


California’s crowded, protracted gubernatorial primary is going to take a little more time to settle.

The race remained too early to call Wednesday morning with 50% of the expected vote counted, according to NBC News’ Decision Desk. Three main candidates — former Fox News host Steve Hilton, a Republican, and two Democrats, former Health and Human Services Secretary Xavier Becerra and billionaire activist Tom Steyer — are competing for two spots in the general election, with the candidate in fourth place, Republican Riverside County Sheriff Chad Bianco, running well behind.

Hilton had 27% support in the all-party primary with about half of votes still left to count, while Becerra had 26% and Steyer had 20%. Bianco was the only other candidate in double digits, at 11%.

In California, all candidates run on the same primary ballot in the primary and the top two vote-getters, regardless of party, move on to the general election.

It’s difficult to say when it will be clear which two candidates advance to the November general election, however, due to the state’s protracted vote counting.

And with millions of ballots left to count, other key races in California remain uncalled as well, including the second runoff spot to face Los Angeles Mayor Karen Bass one on one in November, several House races that could help determine the majority next year, and more.

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In the governor’s race, all three candidates rallied supporters around the state as the evening drew on.

“We’re not there yet, but it’s looking good,” Hilton told allies. “It looks very much as if Californians really will have the chance to vote for change in November and take our state in a new direction, a fresh start for our state, which is long overdue.”

But while Hilton was narrowly in first place when he spoke, Democratic candidates were capturing the majority of the votes.

Becerra looked back at his own “underdog story,” from his immigrant relatives to his bid for governor, which took some time to catch fire.

“Almost immediately, he’s counted out, an afterthought, overlooked by many, outspent by a ton, even called along the way to drop out and save us the trouble,” Becerra recounted to his supporters. “Well, guess what? The underdog stayed in the fight. Like my parents, I never gave up.”

Steyer struck a hopeful note in his election night speech despite a deficit in the vote count.

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“It might take some time to figure out where this is going, we’re going to wait till every ballot is counted, we’re going to give democracy a time to work, and we know we finished really strong,” Steyer said.

Major battleground districts

GOP Rep. David Valadao’s district has been one of Democrats’ top targets for years, but two Democrats are locked in a close race for the second spot in the November general election against the incumbent.

School board member Randy Villegas, who won support from national progressives, has a slight lead over state legislator Jasmeet Bains, 30% to 26%, with less than half of the expected vote tallied in the 22nd District. Valadao is comfortably in first place.

And in Northern California’s 6th District, Rep. Kevin Kiley — who was elected as a Republican and switched to become an independent this election cycle, as he runs in another newly redrawn district — is bunched up in a tight race that includes Democrat Richard Pan, a former state legislator, and Republican Michael Stansfield. Currently, Stansfield is running ahead of Pan; they spent much of Tuesday night and Wednesday morning trading the lead, which could have significant general election implications.

Meanwhile, outside California, Democrats think they might be able to challenge for one of Montana’s red-tinted congressional districts this fall, after Rep. Ryan Zinke decided to retire. But less than 2 percentage points separate Democrats Sam Forstag and Ryan Busse with more than 85% of the expected vote tallied in their primary in Montana’s 1st District.

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Read more about Tuesday’s House primaries here.

A safe seat battle to watch

Plenty of other House districts in California — and a few elsewhere — still have unsettled primaries, but one attracted particular attention due to how nasty the campaign got.

In Southern California, where two Republican incumbents are facing off in one district due to redistricting, Rep. Ken Calvert has advanced to the general election, but Rep. Young Kim is still battling for the second spot. She leads Democrat Esther Kim-Varet in the race for second, 22% to 16%, with about half of the vote in.

Who will face Bass in Los Angeles?

While Bass is projected to advance to a November runoff in Los Angeles, it’s not yet clear whether she’ll face Republican Spencer Pratt or Democrat Nithya Raman.

Bass has about 37% of the vote to 29% for Pratt and 21% for Raman so far, with approximately half of the expected vote tallied.

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Speaking to supporters on election night, Raman, a member of the Los Angeles City Council, said that “tonight may not give us a final answer on this race.”

“Many thousands of votes will be counted in the days ahead, and we may not get an answer we like, but regardless of what happens next, nobody, nobody can take away what all of us have built together,” she continued.

Pratt, meanwhile, was looking ahead to a potential matchup with Bass when he spoke to reporters.

“Now I have five months to get deep into every community that hasn’t heard my message to make them safe,” said Pratt, a former reality TV star. “So I’m actually very excited, because I felt very rushed. It’s a big city, and I was not able to talk to as many people as I look forward to talking to.”

Bass also projected optimism, telling her backers, “We got a lot more to go, but so far it’s looking good.”

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Midterm primaries 2026 live: results and reaction after six states including California and Iowa cast ballots

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Midterm primaries 2026 live: results and reaction after six states including California and Iowa cast ballots


Lucy Campbell

Millions of voters across the country are heading to the polls today in crucial primaries in a slew of key gubernatorial, Senate and House races.

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Here’s a quick rundown of what we’re watching:

California
Voters are casting ballots on who should lead the nation’s most populous state (and the world’s fourth largest economy), where there is no clear leader among candidates vying to advance in the race to succeed term-limited Democratic governor Gavin Newsom. The race for Los Angeles mayor is also on the ballot, along with a series of high-stakes US House contests in the state’s newly redrawn congressional districts – which are set to play an outsized and potentially decisive role in the battle for power in Washington in November’s midterm elections. My colleague Lauren Gambino has more:

Iowa
Per my colleague Chris Stein, with Trump’s approval ratings deep underwater, gas prices high and historical political trends favoring the party out of power, Democrats this year are considering a comeback in Iowa, putting the state at the center of their campaigns to win back control of both the US House and the Senate. That effort for a “once-in-a-generation” breakthrough in the GOP-dominated state is being led by pro-hunting Democrat Rob Sand, who is running for governor. Chris wrote about him below. Democrats also believe they have a shot at winning three of the state’s US House seats and a competitive chance at securing a US Senate seat, where the GOP frontrunner recently called Trump’s war on Iran a “political liability”.

New Jersey
One of this year’s most closely watched House midterms will take place in the battleground district currently represented by now-infamous Republican Tom Kean Jr, who has drawn public scrutiny and concern after missing more than 100 House votes due to an undisclosed illness. Voters are deciding which Democrat will run against him in November – and the seat is a must-win for the party. The frontrunner, veteran army trauma surgeon and political newcomer Adam Hamawy, has secured endorsements from the likes of Bernie Sanders, Alexandria Ocasio-Cortez and Ilhan Omar. My colleague Joseph Gedeon has more:

New Mexico
Contests in the state include primaries for congressional seats, a US Senate seat and a long list of statewide offices, but the governor’s race is the main event. Deb Haaland, who was Joe Biden’s interior secretary, is running for the Democratic nomination, which could put her on a historic path for Native American leaders.

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Montana
In Montana, a five-way Democratic fight is under way for the retiring Republican senator’s seat. Independent Seth Bodnar, former president of the University of Montana, is outraising them all at the moment but they’re refusing to step aside, Politico reports this morning.

South Dakota
The race is on for state governor, Sioux Falls mayor, a US Senate and House seat, a Republican primary for local lawmakers. The incumbent GOP governor Larry Rhoden faces three primary challengers in his first run for a full term. He stepped up into the role from the lieutenant governorship when the former governor, the since-ousted Kristi Noem, left to lead the Department of Homeland Security.

The Associated Press contributed reporting

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Key events

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Joseph Gedeon

On the day Donald Trump endorsed him as a tireless advocate for New Jersey’s seventh district, the representative Tom Kean Jr was, as he has been since early March, nowhere to be found.

Kean, a New Jersey Republican, was last seen when he cast a House floor vote on 5 March, and he is running unopposed in Tuesday’s Republican primary. The Democratic race in his district, meanwhile, has attracted multiple candidates and ample fundraising.

In late April, his office said he was dealing with a “personal medical issue” and would be back “very soon”. He told the New Jersey Globe last month he expected to return within “the next couple of weeks”. In the meantime, Kean’s social media accounts have continued posting regularly, with staff attending ribbon-cuttings and graduation ceremonies on his behalf.

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