Press Release

PUC Begins Process to Explore Rulemaking Related to Use of Distributed Energy Resources and ‘Virtual Power Plants’

Published on 11/9/2023

Filed under: Electric

Process Will Explore How Coordination of Small Local Generation, Smart Devices and other Technology Could Increase Energy Efficiency and Potential Lower Costs

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today approved a joint motion by Chairman Stephen M. DeFrank and Vice Chair Kimberly Barrow to initiate an investigation and rulemaking related to Distributed Energy Resources (DERs) as a mechanism to help increase energy efficiency, enhance service and potentially lower costs.

The PUC investigation and rulemaking process will examine PUC regulations and potential regulatory changes related to DERs and examine the upcoming impact of federal rules allowing DER participation in the wholesale energy market, to ensure that Pennsylvania is not left behind.

As noted in today’s motion, Distributed Energy Resource Aggregations (DERAs) – also known as “Virtual Power Plants” – can deploy many different types of technologies to boost energy efficiency; using available energy when it is the cheapest, cleanest, and most plentiful.

For example, small rooftop solar systems could inject energy into the power grid, while managed charging by electric vehicles could absorb that electricity when it is plentiful – and at the same time smart thermostats or smart water heaters could shift customer demand to a different time of day, depending on the needs of the grid.

Today’s motion also noted that VPPs could save money for customers in the long-term, helping to maintain an adequate supply of power without requiring the construction and maintenance of new and expensive power transmission and distribution infrastructure.

Per today’s motion, the PUC’s Law Bureau and Bureau of Technical Utility Services will prepare an Advanced Notice of Proposed Rulemaking for action by the Commission on or before Feb. 28, 2024, detailing any changes or additions needed to PUC regulations or policy statements.

About the PUC

The Pennsylvania Public Utility Commission balances the needs of consumers and utilities; ensures safe and reliable utility service at reasonable rates; protects the public interest; educates consumers to make independent and informed utility choices; furthers economic development; and fosters new technologies and competitive markets in an environmentally sound manner.

Visit the PUC’s website at puc.pa.gov for recent news releases and video of select proceedings. You can also follow us on Twitter, Facebook, LinkedIn, Instagram and YouTube. Search for the “Pennsylvania Public Utility Commission” or “PA PUC” on your favorite social media channel for updates on utility issues and other helpful consumer information.

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Docket No.: L-3044115

Contact:

• Nils Hagen-Frederiksen
  Press Secretary
  717-418-2701
  nhagen-fre@pa.gov