Electricity costs for households and small businesses are increasingly driven by peak demand during a limited number of high-use hours each year. During these periods, utilities must rely on the most expensive power resources, driving up rates for all customers, even those who use little energy during peak times. In response to this issue, battery storage systems are now being widely recognized as a more cost-effective alternative to balance energy supply and demand, provide grid flexibility, and offset costs for utility customers.

To this end, we will soon introduce legislation requiring electric utilities to set targets and procure grid-stabilizing battery storage as part of their resource planning. This policy focuses on reducing peak demand and lowering system costs, while maintaining reliability and affordability for consumers.

Several other nearby states, like Maryland, New Jersey, and New York, have already begun adopting battery storage into their energy portfolio. Pennsylvania cannot afford to fall behind our neighboring states in these grid modernization efforts, especially as we face severe challenges ahead due to rising energy demand from cloud computing, artificial intelligence, and more. 

Battery storage offers an invaluable service by storing electricity when demand and prices are low and discharging it during peak periods, reducing the need for expensive, inefficient peaker power plants. Storage responds instantly to grid conditions, reduces the likelihood of power outages during extreme weather, and can defer costly transmission and distribution upgrades. By lowering overall system costs, battery storage helps stabilize rates and deliver meaningful savings for consumers and small businesses.

Please join us in co-sponsoring legislation that will make electricity more affordable for all Pennsylvanians.