For years, electric grid reliability has been a concern, due to extreme weather events and aging infrastructure. Now, with the growth of cloud computing, video conferencing, artificial intelligence, and advanced manufacturing increasing energy demand at an unprecedented rate, our grid is under an even greater strain. Consequently, families and businesses could be left vulnerable to frequent power outages and skyrocketing utility bills, disrupting the lives of millions across the Commonwealth. Fortunately, innovative solutions are emerging nationwide to improve grid reliability and address future load growth, with one of the most promising being Virtual Power Plants (VPPs).
 
A VPP is a collection distributed energy sources (DERs) – such as rooftop solar, battery storage, and smart appliances – located in homes, businesses, and commercial buildings. When aggregated and remotely managed, the VPP can be used to conserve energy or generate electricity to relieve grid stress during peak demand, such as a hot summer day when everyone is running their AC. Traditionally, quick-response “peaker plants” have been used to supply electricity during these times; however, this electricity is extremely expensive, and the high costs are passed onto customers. VPPs provide a more affordable and sustainable alternative, helping to save money, avoid blackouts, and improve energy resilience for the future.
 
Nearby states like New York, Maryland and Massachusetts have already enacted policies to support VPPs, and we believe it is time we do the same. As such, we will soon be introducing legislation to direct electric utility companies to establish VPP programs. These programs will allow customers to enroll devices, such as batteries, smart thermostats, and EV chargers, into the VPP and be compensated for reducing energy use or supplying electricity back to the utility when the grid is stressed. Participation will always be voluntary, and customers will have the option to opt-out at any time.
 
If we do not act, Pennsylvania’s electric grid will face serious challenges ahead, leaving ratepayers to pick up the costs. By modernizing our grid with VPPs, we can create win-win scenarios for utility customers, improve sustainability, reduce electricity demand, and secure our energy future. Please join us in co-sponsoring this important legislation.