H.R. 8523 – REDUCE Act

AI-Generated Summary

Updated January 20, 2026 at 4:56 PM UTC

The REDUCE Act directs transmission operators to let demand‑side aggregators bid into wholesale power markets, overriding any state rules that block such participation. It targets aggregators representing customers of large utilities—those that supplied over 4 million MWh in the last year. The Federal Energy Regulatory Commission must create the necessary regulations within a year.

Key Provisions

Transmission organizations must permit aggregators of retail customers to submit demand‑flexibility bids into organized wholesale electric markets, even if state law or commissions would otherwise prohibit such bidding.
The rule applies to aggregators representing customers of utilities that delivered more than 4 million megawatt‑hours in the prior fiscal year.
FERC must issue a final rule implementing this requirement within 12 months of the bill’s enactment.

Legislative Activity

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2 earlier actions

HouseCommittee Latest Action

Referred to the Subcommittee on Innovation, Data, and Commerce.

Commerce, Manufacturing, and Trade Subcommittee

May 31, 2024

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HouseIntro Referral

Introduced in House

May 23, 2024

HouseIntro Referral

Referred to the House Committee on Energy and Commerce.

Energy and Commerce Committee

May 23, 2024

HouseCommittee

Referred to the Subcommittee on Innovation, Data, and Commerce.

Commerce, Manufacturing, and Trade Subcommittee

May 31, 2024

Bill Text

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Introduced in HouseIssued May 23, 2024

I

118th CONGRESS

2d Session

H. R. 8523

IN THE HOUSE OF REPRESENTATIVES

May 23, 2024

Mr. Casten (for himself, Mr. Levin, Ms. Bonamici, Mr. Krishnamoorthi, and Mr. Tonko) introduced the following bill; which was referred to the Committee on Energy and Commerce

A BILL

To require Transmission Organizations to allow bids from aggregators of certain retail customers, and for other purposes.

1.

Short title

This Act may be cited as the Responsive Energy Demand Unlocks Clean Energy Act or the REDUCE Act.

2.

Aggregator bidding into organized power markets

(a)

In general

Notwithstanding any prohibition established by State law or a State commission (as such term is defined in section 3(15) of the Federal Power Act (16 U.S.C. 796(15))) with respect to who may bid into an organized wholesale electric market, each Transmission Organization shall, consistent with any applicable market rules that do not establish such prohibition, allow aggregators of retail customers to submit bids that aggregate demand flexibility of the customers of utilities that distributed more than 4 million megawatt-hours in the previous fiscal year.

(b)

Rulemaking

Not later than 12 months after the date of enactment of this section, the Federal Energy Regulatory Commission shall promulgate a final rule pursuant to subsection (a).