Please ensure Javascript is enabled for purposes of website accessibility Pennsylvania House passes Davidson’s Virtual Power Plant legislation

Pennsylvania House passes Davidson’s Virtual Power Plant legislation

H.B. 2264 lowers energy costs while strengthening grid

Pennsylvania House Democratic Caucus    June 16, 2026 | 2:33 PM

HARRISBURG, June 16 – Today, the Pennsylvania House of Representatives voted to pass House Bill 2264, a key piece of energy legislation authored by state Rep. Nate Davidson, D-Cumberland/Dauphin. The bill establishes a framework for a Virtual Power Plant program in Pennsylvania, delivering a forward-thinking, common-sense solution to lower utility bills and bolster grid reliability.

A virtual power plant connects everyday household technologies, such as smart thermostats, solar batteries and electric vehicles, into a coordinated network. During peak energy demand, like the hottest days of summer, these distributed resources can dynamically scale back demand or feed power back into the grid. This reduces the need to operate expensive, high-emission peaker plants, keeping energy prices affordable for all Pennsylvanians.

"This bill is about practical solutions, affordability and modernizing our infrastructure without placing a burden on ratepayers," said Davidson. "Pennsylvanians are looking for relief when paying their energy bills. By using technologies many families already have in their homes, we can reduce the strain on our electric grid, prevent costly system upgrades and put money directly back into the pockets of consumers who choose to participate."

Under HB 2264, Pennsylvania’s major electric distribution utilities will submit formal VPP proposals to the Pennsylvania Public Utility Commission by July 1, 2027. Consumers who opt into the voluntary program will receive direct compensation for the energy services their connected devices provide. Crucially, the legislation mandates enhanced incentives for low-income households and historically disadvantaged communities, ensuring the financial benefits of the modern energy economy are accessible to everyone.

By creating a decentralized backup system, the legislation also mitigates the risk of localized power outages and stabilizes regional energy markets, all while using existing infrastructure.


"This bill is a common-sense, voluntary and market-driven way to reduce the financial burden for families and businesses," Davidson said. "It is a clear win for our grid infrastructure and all ratepayers."

“Thirty-seven states and the District of Columbia already have at least one virtual power plant program for customers to take advantage of. Customers who have opted in have saved hundreds of dollars on their energy bills. Those are the kinds of savings that would mean the world to hard-working families and seniors on fixed incomes who are struggling to pay their energy bills,” said House Energy Committee Chairwoman Elizabeth Fiedler.

House Bill 2264 now heads to the state Senate for consideration.