Bill > HB2264

This bill mandates that by July 1, 2027, Pennsylvania's electric distribution companies must develop and propose a virtual power plant program to the Public Utility Commission (PUC). A virtual power plant (VPP) is essentially a network of distributed energy resources, like smart thermostats or battery storage systems, that are coordinated to provide services to the electric grid. The PUC will review these proposals, holding public hearings and allowing input from consumer advocates and other stakeholders, and must approve or reject them within 180 days, with provisions for revised proposals if initially disapproved. The programs must aim to reduce peak electricity demand and offer grid services, allowing customers to enroll through aggregators or directly with the electric distribution company. These programs will compensate participants for services such as demand response, voltage support, and load shifting, with specific operational parameters for dispatching resources, and will include enhanced upfront payments for low-income customers and those in historically disadvantaged communities, potentially using federal funding. The bill also outlines requirements for aggregators, measurement and verification of performance, and prohibits penalties for nonperformance, while ensuring participants can maintain their performance-based rates for at least five years and continue to receive other incentives. Electric distribution companies can recover reasonable costs associated with these programs, and the PUC will establish targets and incentives for electricity consumption reduction and peak demand reduction, with financial penalties for failing to meet these targets. The bill applies to electric distribution companies with 100,000 or more customers and includes definitions for key terms like "aggregator," "distributed energy resource," and "grid service."

Agriculture and Natural Resources

https://www.palegis.us/legislation/bills/2025/hb2264