"States Look To Virtual Power Plants To Fight Rising Electric Bills"

"A dozen state legislatures are pushing measures to launch or expand programs that rely on customers’ thermostats, batteries, and EVs to relieve the grid."

"As of last year, 34 states have programs that call on utilities to use smart thermostats and water heaters, batteries and EV chargers, and energy management systems at businesses and factories to combat rising electricity rates.

A dozen states are considering legislation this year that could launch or expand VPPs, including Michigan, Minnesota, New Jersey, and Pennsylvania. Similar bills passed in Illinois and Virginia in 2025 and in Maryland and Colorado in 2024.

The thesis behind these policy pushes is straightforward. Utilities can’t build new power plants or expand and upgrade their grids quickly enough to meet fast-growing electricity demand. Building out that infrastructure is one of the biggest drivers of rising utility rates, though not the only one.

Paying customers to lower their power use or share electrons they’re generating or storing could be a faster and cheaper solution. That approach could reduce the need to build and run expensive peaker power plants — or help avoid or defer costly grid upgrades to serve those peaks — and curb rate increases for all customers, not just those being reimbursed to supply it."