Strengthening California while creating a more sustainable future

OPINION – As the former President of the California Public Utilities Commission, a former member of the cabinets of Governors Newsom and Brown and a lifelong advocate for advancing clean energy goals, I understand the paramount importance of maintaining a reliable and affordable electric grid for the citizens of California.

The state is facing a real affordability crisis, exacerbated by severe weather and climate events that make it harder than ever to keep the lights on. All the while, rising costs for essential materials, supply chain disruptions and federal permitting hurdles continue to create obstacles for clean energy development.

These challenges have also brought immense opportunity. Over the past 20 years, advancements in technology have made energy systems more efficient, while the cost of clean energy has steadily declined. Moreover, we are not alone in the effort to lower costs, strengthen reliability, and manage growing energy demand—across the West, there is a shared commitment to expand clean energy resources and drive sustainable progress.

California Senate Bill 540 (SB 540) presents a tool for California to make progress toward our goals that will reduce costs, strengthen reliability, and more effectively develop new clean energy resources. It will enable California utilities to participate in energy markets governed by a regional organization and foster broader cooperation, while preserving California’s authority over key aspects of its electricity system and climate goals.

For over ten years California has been working with other states to implement market mechanisms to buy and sell electricity more easily across the region. Over 80% of western consumers are now seeing substantial economic, reliability, and emission reduction benefits from this collaboration and diversity of energy supply resources.

So far, these market mechanisms have been limited to excess energy being produced at any given time. The California Independent System Operator (CAISO), which operates this market, is in the process of implementing another mechanism that will enable participants to plan ahead and to make better use of resources to meet the consumer demand at the lowest possible cost. Importantly, the scale of the benefits will increase as the number of participants grows.

But California’s ability to preserve its current benefits while unlocking further cost reductions, reliability protections, and emissions reductions hinges on decisive action. Just as proactive measures were essential during my tenure at the CPUC, bold leadership is crucial to safeguard affordability and the public interest now. SB 540 offers a practical and immediate solution that directly benefits consumers, strengthens infrastructure and upholds California’s sovereignty and clean energy goals.

Our electric grid is the backbone of modern life—from powering homes and businesses to driving technological innovation. SB 540 ensures that this backbone remains strong, dependable, and cost-effective for California consumers.

A diverse coalition of supporters including labor organizations, former regulators, environmental advocates, grassroots organizations, large energy users, and utilities applauds Senators Becker and Stern for championing this thoughtful and no-regrets legislation. I wholeheartedly join them in endorsing SB 540, which strengthens grid reliability, reduces costs, and sets California on a path toward a brighter, more sustainable future.

Marybel Batjer served as President of the California Public Utilities Commission from 2019-2021.