HARRISBURG, PA — Pennsylvania lawmakers are considering new legislation aimed at modernizing the state’s electric grid with lower-cost technologies as energy demand rises and household utility bills increase.
What This Means for You
- Potential Relief for Energy Bills: Lawmakers are exploring technologies designed to reduce grid upgrade costs.
- New Programs Could Launch: Proposed legislation would promote advanced grid technology and virtual power plants.
- Reliability Improvements Targeted: The measures aim to prevent outages and handle growing electricity demand.
The House Energy Committee held a public hearing Monday to review two bills that would promote new approaches to managing electricity demand and improving grid performance.
The proposals focus on advanced transmission technologies and virtual power plants — systems designed to increase efficiency and reduce the need for costly new infrastructure.
Bills Aim to Modernize Electric Grid
House Bill 2223 would encourage utilities to adopt advanced transmission technologies, known as ATTs.
These technologies use hardware and software to improve how electricity flows through existing power lines, allowing more energy to be transmitted without building new infrastructure.
Examples include dynamic line ratings, which adjust how much electricity lines can carry based on real-time conditions, and power flow control devices that direct electricity more efficiently.
Supporters say ATTs can be deployed in months, compared with up to a decade for new transmission line projects.
Lawmakers Cite Rising Demand and Costs
Committee Chair Elizabeth Fiedler, D-Philadelphia, said increasing demand from data centers, electric vehicles, and advanced manufacturing is putting pressure on the grid.
The growth in electricity use has contributed to higher energy bills and an increase in service shutoffs, which rose by 38 percent in 2025.
“Our grid needs upgrades to meet rising demand, but building out new transmission infrastructure raises prices for consumers,” Fiedler said. “Working people, seniors, and small businesses can’t shoulder higher costs right now.”
Testimony Highlights Cost Savings
Industry experts told lawmakers that advanced transmission technologies can reduce costs and improve performance.
Jenny Netherton of the Pew Charitable Trusts cited a 2022 project by PPL that increased grid capacity by 16 percent and reduced congestion costs by $65 million.
She said similar approaches could help lower costs for consumers by delaying or avoiding expensive infrastructure upgrades.
Virtual Power Plant Program Proposed
A second measure, House Bill 2264, would require utilities to create virtual power plant programs.
Virtual power plants are networks of distributed energy resources — such as rooftop solar panels, battery storage systems, and smart appliances — that can be coordinated to reduce demand or supply electricity during peak usage periods.
Participants in these programs can receive compensation for reducing energy use or contributing power back to the grid.
State Rep. Nate Davidson, D-Dauphin, said the approach could help manage rising demand while protecting consumers.
“By modernizing how we manage energy, we can protect ratepayers, strengthen reliability, and ensure Pennsylvania’s grid is ready for the future,” Davidson said.
Next Steps for Legislation
Both bills must be considered for a vote by the House Energy Committee before advancing to the full Pennsylvania House of Representatives.
Lawmakers did not indicate when a committee vote might occur.
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