REDUCE Act

The REDUCE Act allows energy aggregators (groups that bundle demand from retail customers) to bid into wholesale electricity markets, overriding state laws that previously blocked this. It directly affects large utilities serving over 4 million megawatt-hours annually and transmission organizations managing power grids. The key mechanism requires transmission organizations to permit these aggregator bids, while the Federal Energy Regulatory Commission must issue implementing rules within one year of the bill's passage. This changes how demand flexibility can be utilized in energy markets without specifying environmental or economic outcomes.