FOR IMMEDIATE RELEASE: Wednesday, June 4, 2025
CONTACT: Tom Steel, Tom.Steel@asm.ca.gov, (530) 713-7783
Assemblymember Harabedian Passes AB 740 to the Senate to Advance Virtual Power Plants and Lower Energy Costs
(SACRAMENTO, CA) - Yesterday, Assemblymember John Harabedian (D-Pasadena) passed AB 740 to lower energy costs and promote grid reliability by using Virtual Power Plants. A Virtual Power Plant (VPP) connects everyday clean energy technologies-like rooftop solar, EV chargers, and smart appliances to operate as one coordinated energy source. By harnessing the power already available in our homes and businesses, VPPs help balance the grid, cut emissions, and build a more decentralized energy system.
“As energy prices continue to strain California families, Virtual Power Plants present a smart, homegrown solution,” said Assemblymember John Harabedian (D-Pasadena). “That’s why today’s passage of AB 740 is such an important step— it moves California closer to unlocking its full potential to lower costs, improve grid reliability, and accelerate our clean energy future. I'm proud to partner with Advanced Energy United, Environmental California, and the Climate Center to help make energy cleaner and more affordable for all Californians.”
“Creating a statewide plan for virtual power plants will help turn everyday home appliances into energy assets that will lower bills and make our grid stronger and more reliable during grid emergencies,” said Edson Perez, California lead at Advanced Energy United, one of the bill sponsors.
“Virtual power plants (VPPs) can make electricity cleaner, cheaper, and more reliable for millions of Californians," said Kurt Johnson, Community Energy Resilience Director for policy nonprofit The Climate Center. "The Climate Center is proud to work alongside Assemblymember Harabedian to advance the use of VPPs and secure clean, affordable energy for all.”
"Virtual power plants are a win-win for California – they help cut pollution, strengthen our electric grid and empower communities to create a clean energy future,” said Laura Deehan, Environment California’s state director. “With AB 740, we’re unlocking the potential of thousands of homes and businesses to share clean, reliable power when and where it’s needed most."
In short, this bill will do the following:
- Require the California Energy Commission (CEC) to do modeling of VPPs on electricity costs and rate reduction in the biennial Integrated Energy Policy Reports (IEPR).
- Mandate the CEC submit a VPP implementation plan to the Legislature with goals and milestones as part of the IEPR.
- Require investor-owned utilities (IOUs) to report annually on their progress toward meeting the state’s load shift goal.
This bill is sponsored by Advanced Energy United, Environment California and the Climate Center, and will be heard in Senate policy committees in the summer.
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Assemblymember John Harabedian represents the 41st District composed of the cities of La Cañada Flintridge, Pasadena, Altadena, Sierra Madre, Monrovia, Bradbury, San Dimas, La Verne, Claremont, Upland, Rancho Cucamonga, Oak Hills, Piñon Hills and Phelan.
