Testifiers emphasize the role of grid modernization in curbing rising energy costs
Pennsylvania House Democratic Caucus March 18, 2026 | 8:38 AM
HARRISBURG, March 17 – On Monday, PA House Energy Committee Chair Elizabeth Fiedler, D-Phila., convened a public hearing to discuss ways to modernize and upgrade Pennsylvania’s electric grid using lower-cost, high-efficiency solutions.
Members of the committee heard testimony from industry experts on H.B. 2223, which would encourage the adoption of advanced transmission technologies, and H.B. 2264, which would establish a virtual power plant program in Pennsylvania. ATTs and VPPs offer cost-effective opportunities to strengthen grid reliability, expand capacity, and ensure energy costs are kept as low as possible for consumers and small businesses
Pennsylvania’s energy demand is being driven higher by the rapid expansion of data centers that support artificial intelligence and cloud computing, the increasing electrification of vehicles and household appliances, and the power needs of advanced manufacturing. This demand shift has already led to record increases in energy bills for regular households, with shutoffs increasing by 38% in 2025. To keep pace, the Commonwealth’s electric grid requires significant and timely capacity upgrades.
“Our grid needs upgrades to meet rising demand, but building out new transmission infrastructure raises prices for consumers,” said Fiedler. “Working people, seniors, and small businesses can't shoulder higher costs right now. Implementing more efficient, grid-modernizing solutions, like ATTs and VPPs, ensures that consumers are not charged for expensive upgrades when less expensive options are available.”
House Bill 2223, sponsored by Fiedler, would encourage utility companies to implement ATTs on existing and new transmission lines. Similar legislation has been enacted in five states in the PJM region, namely Delaware, Illinois, Indiana, Ohio, and Virginia.
Advanced transmission technologies are hardware and software solutions that optimize the efficiency and reliability of existing and newly constructed electric grid infrastructure. These solutions include dynamic line ratings, high-performance conductors, power flow control devices, and topology optimization. Notably, ATTs can be implemented in a matter of months, whereas new transmission projects could take about a decade to complete.
In her testimony before the committee, Jenny Netherton, an energy modernization officer with Pew Charitable Trusts, emphasized the proven track record of ATTs for improving grid performance and curbing rising energy costs for consumers, reporting that PPL’s 2022 project “resulted in a $65 million reduction in congestion costs, a 16% increase in capacity, and $50 million in savings by deferring a transmission line rebuild.” Netherton urged a favorable vote on the bill.
Kelt Wilska, senior manager of state policy for advanced transmission technologies at Grid Strategies LLC, expressed support for the legislation and highlighted the Department of Energy’s recent announcement of grant funding for ATT projects, noting that “the time to move [on the bill] is now.”
The committee also heard testimony on H.B. 2264, sponsored by state Rep. Nate Davidson, D-Dauphin, which would require electric utility companies to create virtual power plant programs. By choosing to participate in VPP programs, consumers are compensated for reducing energy use or supplying electricity back to the grid when demand peaks.
“Pennsylvania's electric grid continues to strain the pocketbooks of our neighbors and families as energy demand rises. More than ever, we need smarter solutions to keep power reliable and affordable,” said Davidson. “By modernizing how we manage energy, we can protect ratepayers, strengthen reliability, and ensure Pennsylvania’s grid is ready for the future.”
Virtual power plants are remotely managed networks of distributed energy resources cued to conserve energy or discharge electricity to relieve grid strain during periods of peak demand. Examples of distributed energy resources eligible to participate in VPP programs include rooftop solar, battery storage, and smart appliances.
Over 60% of U.S. households have at least one smart appliance, and nearly 7 million U.S. households have installed solar arrays, yet less than 20% of all eligible devices are enrolled in a VPP program. Chris D’Agostino, the Pennsylvania Policy Principal at Advanced Energy United, noted that H.B. 2264 would “unlock the value of these existing resources—reducing costs for ratepayers while strengthening the reliability of the electric grid.”
ATTs and VPPs have already been implemented in dozens of other states and globally in over 65 countries. These bills must be considered for a vote by the House Energy Committee before they can move to the House floor.