The bill passed by a vote of 107 to 95-- Republicans voting no.
"This bill is about practical solutions, affordability and modernizing our infrastructure without placing a burden on ratepayers," said Rep. Nathan 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."
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.
Under House Bill 2264, Pennsylvania’s major electric distribution utilities will submit formal virtual power plant proposals to the 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, according to Rep. Davidson.
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," Rep. 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 (D-Philadelphia).
The bill now goes to the Senate for action.
Click Here for Rep. Davidson’s announcement.
16 House Energy Bills Now In Senate
The House has now passed 16 bills to promote the development of more electric generation, improve grid reliability and address energy affordability issues that are all now in the Senate--
-- Authorize PUC To Regulate Data Centers: House Bill 1834 (Matzie-D-Beaver) authorized the Public Utility Commission to regulate A.I. data centers and other large loads by a vote of 104 to 95-- Republicans opposed. (Passed House in March, now in Senate.) [Read more here]
-- Community Solar Energy: House Bill 504 (Schweyer-D-Lehigh) authorizing Community Energy Programs to expand solar energy access across Pennsylvania (part of Governor’s Lightning Energy Plan) by a vote of 114 to 89- Republicans opposing. (Passed the House in May 2025, now in the Senate). [Read more here.]
-- Encouraging Warehouse Solar: House Bill 1260 (Rusnock-D-Berks) encourages the development of solar energy generation facilities at warehouses and distribution centers by a vote of 101 to 98-- Republicans opposed. (Passed House in March, now in Senate.) [Read more here.]
-- Geothermal Energy: House Bill 2076 (Venkat-D-Allegheny, Williams-R-Chester) to establish a framework for development of clean, safe geothermal energy to meet exploding base load energy demands by a vote of 118 to 83-- 16 Republicans supporting. (Passed House in May, now in Senate.) [Read more here]
-- Virtual Power Plants: House Bill 2264 (Davidson-D-Cumberland) to establish a framework for a virtual power plant to use existing energy resources more effectively, increase grid reliability and address rising energy bills by a vote of 107 to 95-- Republicans voting no. (House passed in June, now in the Senate.)
-- Advanced Transmission Line Technology: House Bill 2223 (Fiedler-D-Philadelphia) requiring the consideration of advanced transmission line technology in transmission projects by a unanimous vote. (Passed House in May, now in Senate.) [Read more here]
-- Electric Grid Capacity Maps: House Bill 2429 (Cerrato-D-Montgomery) requires electric utilities to make available maps showing the hosting capacity of transmission lines to allow for faster connection of generation by a vote of 110 to 92-- Republicans opposing. (Passed House in June, now in the Senate.
-- Retooling PA Energy Financing Authority: House Bill 2347 (Fiedler-D-Philadelphia) making changes to the authority of the PA Energy Financing Authority to take advantage of available federal funding by a vote of 106 to 95-- 4 Republicans supporting. (Passed House in May, now in Senate.) [Read more here]
-- Updating Act 129 Energy Efficiency Plans: House Bill 505 (Donahue-D-Lackawanna) updating Act 129 utility energy efficiency programs and adding natural gas utilities (part of Governor’s Lightning Energy Plan) by a vote of 102 to 101-- Republicans opposing. (Passed House in December 2025, now in the Senate).
-- Tax Credit Changes To Develop Clean Energy Generation: House Bill 500 (Inglis-D- Allegheny) -- the Pennsylvania Economic Development for a Growing Economy (EDGE) Tax Credit to develop new clean, reliable and affordable electric generation facilities (part of Governor’s Lightning Energy Plan) by a vote of 108 to 95-- Republicans opposing. (House passed in May 2025, now in the Senate.)
-- Advanced Clean Manufacturing Tax Credit: House Bill 1556 (Fiedler-D-Philadelphia) authorizing a clean manufacturing tax credit by a vote of 104 to 93- Republicans opposed. (Passed House in February, now in Senate.) [Read more here]
-- Model Data Center Zoning Ordinance: House Bill 2151 (Donahue-D-Lackawanna) directing DCED to develop a model zoning ordinance for voluntary use by local governments to regulate and mitigate the community impacts of A.I. data center developments by a vote of 124 to 77-- Some Democrats oppose, mostly Republicans. (House passed in April, now in the Senate.) [Read more here.]
-- Reporting Data Center Energy, Water Use: House Bill 2150 (Donahue-D-Lackawanna) by a vote of 133 to 68 requiring data centers in Pennsylvania to send information about their energy and water use to DEP and requires DEP to aggregate the information and create an annual report on data center impacts by a vote of 133 to 68-- Republicans voting no. (House passed in April, now in the Senate.) [Read more here.]
-- Reporting Data Center Water Use: House Bill 2246 (Webster-D-Montgomery) requiring data centers to report on and regulate water use, water quality and other information on water discharges to DEP by a vote of 116 to 84-- Republicans opposing. (Passed House in April, now in Senate.) [Read more here]
-- Reducing Fees On Modular Nuclear Reactors: House Bill 2017 (Giral-D-Philadelphia) reducing fees on modular and micro nuclear reactors passed by unanimous vote. (House passed in February, now in Senate.)
-- Nuclear Power Plant Fees: House Bill 2450 (Mehaffie-R-Dauphin) increases fees on nuclear power plants to support oversight by DEP by a vote of 199 to 3- Republicans voted no. (Passed the House in June, now in the Senate.)
Resource Link:
-- PA House Committee Hears How Virtual Power Plants, Advanced Transmission Line Technologies Allow Us To Quickly Get More Out Of Our Energy Infrastructure In Less Time, Without Huge Investments Or Delays [PaEN]
Related Articles This Week:
-- PA House Passes Legislation Authorizing Virtual Power Plants To Use Existing Energy Resources More Effectively, Address Grid Reliability, Rising Energy Bills; 16 House Energy Bills Now In Senate [PaEN]
-- First United Presbyterian Church Of Crafton Heights In Pittsburgh Cut Energy Bills By More Than 2/3, Now Invests More In People, The Community [PaEN]
-- PennDOT Now Accepting Applications For National Electric Vehicle Infrastructure Grants In Western And Southeast PA; June 25 Webinar For Western Applicants [PaEN]
-- Allegheny County To Host June 24 Virtual Meeting Inviting Public Input On The County's First-Ever Climate Action Plan [PaEN]
[Posted: June 16, 2026] PA Environment Digest
