SB 540 fact sheet

SB 540 would make electricity more affordable, reliable and clean in California. 

Update: ACP-California joined sponsors in changing our position on SB 540 to “oppose unless amended” due to harmful amendments that were made in the Senate. The bill should be restored to its original version to harness the benefits outlined below.

The legislation would clear the way for California utilities to participate in expanded regional markets with the potential to save ratepayers $1 billion per year. With access to a bigger market, California could sell more of its abundant daytime solar, helping keep utility bills down, while expanding its access to competitively priced clean resources such as New Mexico wind.

The California Independent System Operator would operate the expanded markets with oversight from an independent body with representation from around the West. California would retain its authority over its own clean energy goals. SB 540 is backed by an expansive coalition of supporters in California including labor, business, climate advocates, clean energy advocates, public utilities, community choice aggregators and consumer advocates.

Utilities and power suppliers around the West have pledged to join the California-based markets if they’re independently governed, unlocking projected savings of as much as $1 billion per year. 

If California doesn’t act now, many of those organizations will instead join a competing market based in Arkansas. Californians would lose out on the benefits and the state’s grid could become isolated, making energy prices and supplies more volatile.