An Act to amend the Code of Virginia by adding a section numbered 56-585.1:17, relating to electric utilities; virtual power plant pilot program; Phase I Utilities.
HB1467 creates a new section of the Virginia Code directing each Phase I electric utility to seek approval from the State Corporation Commission for a virtual power plant pilot program. The pilot is intended to test ways to optimize electricity demand and use aggregated distributed energy resources, such as battery storage, smart thermostats, and managed electric vehicle charging, to provide grid services like peak shaving, voltage support, and emergency response. The bill defines key terms including aggregator, distributed energy resource, eligible technology, grid event, and virtual power plant, and it requires the pilot to include resources across multiple geographic regions of the Commonwealth.
By July 1, 2027, each Phase I utility must petition for a pilot totaling up to 150 megawatts and demonstrate that it has considered federal funding opportunities. The utility must also propose at least 5 megawatts of programs that incentivize residential customers to buy battery storage devices. By June 15, 2028, the utility must seek approval for a tariff or tariff variations allowing residential, commercial, and industrial customers to enroll directly or through an aggregator. The bill also requires the utility to evaluate customer incentives, opt-out rules, disenrollment for nonperformance, stakeholder input, and compensation mechanisms for participating resources.
The bill adds § 56-585.1:17 to the Code of Virginia and imposes new planning and filing obligations on Phase I utilities before the State Corporation Commission. It does not itself authorize a statewide market program, but it requires utilities to develop and seek approval for a structured pilot and later tariff framework that could expand customer participation in distributed energy resource aggregation. The measure affects electric utilities, customers with eligible technologies, aggregators, and the Commission’s oversight of utility pilot programs and tariffs.
The available record shows no committee transcript or recorded votes, so there is no direct evidence of debate or opposition in the provided materials. Based on the bill text, the measure appears generally supportive of grid modernization, customer-side resources, and demand flexibility, with an emphasis on pilot testing and regulatory approval rather than immediate broad deployment. The inclusion of incentives for battery storage and provisions for historically economically disadvantaged communities suggests an effort to build support around reliability, innovation, and equity.
The main potential points of contention are likely to be the scope and cost of the pilot, the requirement that utilities evaluate federal funding, and the operational rules governing grid events, customer opt-outs, and disenrollment for nonperformance. Aggregators are given access to customer and grid data, which may raise concerns about data sharing, utility control, and market participation. Another possible issue is how compensation, incentives, and tariff design will be structured for different technologies and customer classes, especially if utilities, regulators, consumer advocates, or third-party providers disagree over program design or cost recovery.