Please ensure Javascript is enabled for purposes of website accessibility Rivera bill to lower electricity costs, increase reliability through grid-scale battery storage passes House

Rivera bill to lower electricity costs, increase reliability through grid-scale battery storage passes House

HARRISBURG, Oct. 5 – Legislation aimed at reducing electricity costs and increasing reliability for Pennsylvania households and small businesses by requiring electric utilities to set targets for and procure grid-stabilizing battery storage passed the House today, the bill’s prime sponsor, state Rep. Nikki Rivera, D-Lancaster, announced.

“Pennsylvania’s aging electricity grid is strained by increasingly violent weather and surging energy demand from cloud computing, artificial intelligence and other emerging technologies,” Rivera said. “My legislation offers a practical, proven solution that will help keep our lights on and our electric bills affordable.”

House Bill 2380 would require Pennsylvania’s largest electric utilities to install 3,500 megawatts of battery storage by 2035. The Pennsylvania Public Utility Commission would assign each utility’s share of 3,500 megawatts based on the service load and annual peak demand of each electric company with more than 600,000 customers. The bill also includes competitive procurement requirements and regulatory oversight to help ensure projects deliver value for ratepayers.

Electricity costs are often driven by peak-hour demand, when electric utilities must rely on expensive “peaker” power plants that quickly ramp up to prevent grid failures. Battery storage systems store electricity when demand and prices are low and discharge it when demand is highest. They would lower costs by reducing congestion on the grid, limiting the need for expensive infrastructure upgrades, and cutting reliance on costly peak power purchases.

Rivera noted that the commonwealth’s energy usage grew nearly 3% in 2024. She expressed concern that projected industrial demand growth over the next five years – particularly from data centers – would strain Pennsylvania’s energy grid.

Rivera pointed to the role that battery storage played in preventing blackouts during extreme summer heat in California in 2021 and Texas in 2023. She said that investment in battery storage is critical because the PUC has warned that the commonwealth’s grid could soon face widespread outages or even blackouts.

“Battery storage can help ensure that our grid remains reliable and resilient as demand grows and extreme weather puts greater pressure on the grid,” Rivera said. “Many of our residents in Central Pennsylvania, myself included, went without power for days this summer after the July 4 storm. A prolonged power outage during a blizzard would be devastating for Pennsylvania families and communities.”

Rivera pointed out that 13 states, including Maryland, New Jersey and New York, have adopted battery storage targets to lower costs, balance supply and demand and improve grid flexibility.

“It’s time for Pennsylvania to join its neighbors and modernize its power grid,” Rivera said. “We don’t have the time to waste.”

House Bill 2380 now moves to the Senate for consideration.