Bill > HB617

This bill requires Appalachian Power, a Phase I Utility, to petition the State Corporation Commission by December 1, 2026, to start a pilot program for virtual power plants (VPPs). A VPP is a group of distributed energy resources, which are devices like battery storage or smart thermostats that can manage electricity use, coordinated to provide grid services. These services help stabilize the electric grid, especially during peak demand times, through actions like "peak-shaving," which reduces electricity usage when demand is highest. The pilot program will assess how VPPs can meet grid capacity needs and provide these services, and it must include aggregations of distributed energy resources totaling up to 150 megawatts, located across different regions of Virginia. The bill also mandates that the utility evaluate various aspects of the program, such as customer incentives, operational parameters for grid services, and the development of a tariff that allows customers to enroll their eligible technologies, including those in historically economically disadvantaged communities, either directly or through an aggregator. By November 15, 2027, the utility must petition for a program tariff, and the initial phase of the pilot program will conclude by July 1, 2029, after which the Commission will review its effectiveness and consider establishing a permanent VPP program.

Business and Industry

https://lis.virginia.gov/bill-details/20261/HB617