HB 2264 Pennsylvania House · 2025-2026 Regular Session

An Act amending Title 66 (Public Utilities) of the Pennsylvania Consolidated Statutes, in restructuring of electric utility industry, providing for virtual power plant program.

This bill requires Pennsylvania electric distribution companies to create and implement virtual power plant programs by July 1, 2027, which allow customers with eligible energy technologies like solar panels or batteries to participate in grid services. The Pennsylvania Public Utility Commission will review and approve these proposals within 180 days, requiring companies to set enrollment targets and include mechanisms for existing demand response programs. Participants can receive compensation for providing services such as peak load reduction, voltage support, and emergency grid services, with special provisions for low-income customers and disadvantaged communities to receive enhanced upfront payments. The program will establish operational rules for when and how often grid events can occur, including limits on event duration and advance notice requirements, while allowing customers to disenroll without penalties for nonperformance.

Issues: ✓ Energy ✓ Technology

Bill status passed 3 of 5 stages cleared

Introduction

Mar 2026

Committee Review

Jun 2026

House Passage

Jun 2026

Senate Passage

Governor

Introduced Mar 5, 2026 Last action Jun 24, 2026

Maddy AI version diff · 1 comparison

What changed between versions

Printer's No. PN2962 → Printer's No. PN3369 · 8 edits

MODERATE

The bill was amended to strengthen oversight and fairness in Pennsylvania's new virtual power plant program. Key changes include requiring electric companies to prove their proposals are cost-effective, adding rules to prevent double-dipping of payments for the same grid service, and expanding eligibility to include demand response resources at commercial and industrial sites. The amendments also mandate that the program does not interfere with wholesale energy markets and require enhanced upfront payments for low-income and historically disadvantaged communities.

Scope change

The bill now explicitly prohibits the program from interfering with wholesale energy markets and requires alignment with regional transmission organization rules. It also expands eligibility to include demand response resources at commercial and industrial sites.

REQUIREMENT

Added a requirement for the electric distribution company to demonstrate that the program proposal is cost-effective using a cost-benefit analysis.

Required the program to operate in a manner consistent with wholesale energy and capacity markets and the rules of the relevant regional transmission organization.

Mandated that the commission adopt rules to compensate energy exported from enrolled devices at a value commensurate with the benefits provided to the grid.

Required electric distribution companies to use advanced metering infrastructure to calculate customer peak load contributions and perform load settlements.

ELIGIBILITY

Explicitly allowed eligible demand response resources located at commercial and industrial sites to participate in the program.

ENFORCEMENT

Prohibited participants from receiving compensation for a grid service if that same service is already being compensated under a federal, regional, or utility demand response program, unless the services are distinct.

FISCAL

Added a requirement for enhanced upfront payments specifically for low-income customers and those in historically disadvantaged communities.

DEFINITION

Updated the definition of 'Grid service' to include services relating to the transmission or distribution system.

Floor votes · House Jun 16, 2026

How they voted

107–94

Passed

Total votes 201

Jun 16, 2026

D Democratic102

102 Yea

100% Yea

R Republican99

5 Yea 94 Nay

94% Nay

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Jun 24, 2026

Committee

Referred to Consumer Protection & Professional Licensure

upper

Jun 16, 2026

Lower · Passed

Third consideration and final passage

lower

Jun 16, 2026

Lower · Passed

Re-reported as committed

lower

Jun 15, 2026

Committee

Re-committed to Appropriations

lower

May 6, 2026

Lower · Passed

Reported as amended

lower

Mar 5, 2026

Committee

Referred to Energy

lower

1 primary · 22 co-sponsors