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HB 617

Electric utilities; virtual power plant pilot program, Phase I Utilities.

2026 Regular Session Introduced by Joe McNamara

Virginia HB 617 establishes an electric utility virtual power plant pilot program to aggregate distributed renewable and battery resources for improved grid flexibility and demand management.

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Bill Summary · HB 617

Legislative bill overview

HB 617 establishes a Phase I pilot program for virtual power plants (VPPs) in Virginia, allowing electric utilities to aggregate distributed energy resources like rooftop solar, batteries, and smart devices to operate as coordinated power sources. The bill creates a framework for utilities to test VPP technology while maintaining grid reliability and managing customer participation requirements.

Why is this important

Virtual power plants could modernize Virginia's electrical grid by increasing flexibility and reducing strain during peak demand periods, potentially lowering costs and improving resilience. As more renewable energy sources connect to the grid, VPPs offer utilities a way to balance supply and demand without building new power plants, but the pilot phase is critical to understanding practical implementation challenges and consumer impacts.

Potential points of contention

  • Customer participation and data privacy: Questions about whether participation is voluntary or mandatory, and how customer energy data from distributed devices will be collected, stored, and protected.
  • Cost allocation: Unclear how pilot program costs will be distributed between utilities, participating customers, and non-participating ratepayers, and whether customers receive fair compensation for grid services.
  • Grid control and reliability: Concerns about whether aggregating thousands of small devices could create new vulnerabilities, and how utilities will maintain reliability if distributed resources disconnect unexpectedly.

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

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