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California Opens Door to Western Power Grid

September 26, 2025
California passed legislation (AB 825) that sets the stage for a Western electricity market projected to save the region $1.2 billion each year through smarter renewable energy sharing across states.
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The new law allows the California Independent System Operator (CAISO) to collaborate with other Western states and utilities to establish a shared day-ahead energy trading system which could more efficiently distribute solar power from California and wind power from the Rocky Mountains and Pacific Northwest across the region. While the market won’t come online immediately, advocates view the legislation as a starting point for renewable energy growth, lower costs for utilities and consumers alike, and improved reliability.

Opposition groups worry it could expose California to fossil fuel from neighboring states and interference under the Trump administration’s energy policy agenda, while supporters contend that joining with other states could actually strengthen the region’s position against federal overreach.

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