Press Release

PUC Approves Modified Plan for PPL’s Second Distributed Energy Resource Management Program

Published on 11/20/2025

Filed under: Electric

Action is another step in the Commission’s ongoing efforts to improve interconnection with renewables and prepare the grid for future demand

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today approved a modified Second Distributed Energy Resource (DER) Management Plan for PPL Electric Utilities Corporation (PPL), with targeted changes designed to strengthen consumer protections, enhance transparency, and support continued grid modernization across the Company’s service territory.

“As Pennsylvania’s grid continues to evolve, today’s action reflects the Commission’s commitment to staying ahead of a rapidly changing landscape,” said PUC Chairman Steve DeFrank. “The continued growth of distributed energy resources requires thoughtful planning, investment, and coordination. This decision is one more step in the Commission’s broader work to modernize how Pennsylvania connects and manages distributed energy—strengthening local reliability, improving hosting capacity, and supporting the growing number of customers seeking to interconnect clean energy technologies.”

The Commission voted 4-1 on a joint motion by Chairman Steve DeFrank and Commissioner Ralph V. Yanora directing PPL to implement several key modifications, including a requirement to issue a Request for Proposals (RFP) to ensure that third-party aggregators have an opportunity to participate competitively in future stages of DER deployment.

“For PPL customers, this decision supports a more reliable grid and the potential for real cost savings over time,” said Commissioner Ralph V. Yanora. “Smarter monitoring and management reduce wear on the system and help avoid unnecessary expenses, which can ease cost pressures for customers. By strengthening transparency and ensuring fair participation, we’re helping deliver a program that works for everyone.”

Summary of Commission Action

Today’s action allows PPL to move forward with a permanent DER Management Program following the conclusion of its pilot, which began in 2021. Under the modified approval:

• PPL may continue and expand the installation of DER management devices.
  
  
• The Company may actively monitor and manage smart inverter settings for inverter-based DERs under defined conditions.
  
  
• The annual cap of 3,000 DER management devices from the pilot phase is removed.
  
  
• A competitive RFP for third-party aggregators is required to help ensure fair market access.
  
  
• PPL must file a DER Orchestration Plan, including an evaluation of flexible interconnection approaches, within 12 months.
  
  

Continuing Commission Efforts on Grid Modernization and Interconnection

Chairman DeFrank emphasized that today’s decision is not a standalone action but part of the Commission’s broader energy strategy.

“Across multiple proceedings this year, the Commission has been working to address the interrelated challenges of interconnection delays, grid congestion, resource adequacy, and the impacts of new load and generation,” Chairman DeFrank said. “We continue to take concrete steps—like today’s decision—to modernize Pennsylvania’s grid in a way that protects consumers, encourages innovation, and maintains reliability at every level of the system.”

Today’s decision builds on a series of related PUC efforts aimed at addressing interconnection backlogs, supporting more efficient DER growth, and strengthening Pennsylvania’s long-term energy outlook. In recent months, the Commission has advanced multiple complementary initiatives, including:

• Broader reviews of interconnection procedures and transparency, including evaluation of flexible interconnection models.
  
  
• Active engagement in regional PJM discussions related to resource adequacy, transmission needs, and evolving load growth.
  
  
• Targeted actions to ensure timely evaluation of new generation and distributed energy requests, addressing both developer concerns and consumer protection issues.
  
  
• Continued monitoring of grid reliability challenges as storms, new loads, and distributed generation reshape distribution system operations.

The Commission noted that these efforts work in tandem, and today’s action represents another step forward in its broader grid modernization agenda.

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 X, 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.: P-2024-3049223

Contact:

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