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SB 487

Electric cooperatives; authorized to establish and implement a virtual power plant program.

2026 Regular Session Introduced by Jeremy McPike

Virginia bill authorizes electric cooperatives to create virtual power plant programs aggregating distributed renewable energy resources to modernize grid operations and integrate renewables.

Approved by Governor-Chapter 893 (effective 7/1/2026)
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Bill Summary · SB 487

Legislative bill overview

SB 487 authorizes electric cooperatives in Virginia to establish and operate virtual power plant (VPP) programs, which aggregate distributed energy resources like solar panels, batteries, and smart appliances to function as a coordinated power system. The bill grants cooperatives regulatory authority to manage these distributed resources and potentially participate in energy markets.

Why is this important

Virtual power plants can enhance grid reliability, reduce peak demand strain, and integrate renewable energy more efficiently into the electrical system. This legislative authorization allows rural and cooperative-served areas to modernize their energy infrastructure and potentially reduce costs through demand management and local renewable integration.

Potential points of contention

  • Regulatory clarity: Questions remain about how state oversight applies to VPP operations and whether current regulatory frameworks adequately protect consumer data and grid security in distributed systems
  • Consumer protections: Concerns about what happens to customer data collected through smart devices, participation requirements, and whether opt-in participation is truly voluntary or operationally necessary
  • Cost allocation: Debate over whether VPP infrastructure and technology costs are fairly distributed among members or disproportionately burden certain customer classes

Compiled from official sources — confirm details with the bill’s official record.

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