This week’s heatwave across the East Coast is pushing electricity demand to dangerous highs — driving up power prices and forcing grid operators to issue emergency alerts. On top of that, a spike in your electricity bill, driven by this series of winter storms earlier in the year, may already be hitting home — just as forecasted for 2026. That’s little comfort for those of us who will have to crank up the air conditioning to get through the summer.
As bills around the Commonwealth go up, electric utilities will spend more than ever on energy and infrastructure. Utilities’ traditional response to rising demand is to build more power plants and expand the grid with more poles, wires, and substations. Extreme heat is now one of the biggest threats to grid reliability. And as heatwaves become more frequent, Pennsylvania needs tools that can respond instantly—not infrastructure projects that take a decade.
Fortunately, there is a tool that Pennsylvania has yet to deploy at scale that can offer relief to energy consumers, one that will require legislative action to fully unlock. If state legislators pass policy to enable virtual power plants (VPPs) this year, Pennsylvanians will be able to harness the thousands of energy resources already in their homes and businesses to help control their bills.
As electricity demand rises and grid stress become more frequent and severe, VPPs can respond quickly and cost-effectively by coordinating thousands of already-existing smaller, distributed energy resources (DERs), such as rooftop solar, battery storage, smart thermostats, and other flexible devices such as heat pumps and electric vehicle (EV) chargers, to operate together like a single power plant when the grid needs support most.
By saving or sharing power from these resources at key times—and getting compensated to do so— Pennsylvanians can save money and reduce the need for utilities to buy electricity when it is most expensive, like they do today. These actions can also reduce the need for investing in costly new power plants, which only get used for a handful of hours each year.
A useful way to understand VPPs is to think of an orchestra. Each instrument matters individually, but real power emerges when they play in sync. An orchestra relies on a conductor to keep everyone aligned, setting the tempo and signaling exactly when to play louder or softer.
In a VPP, DERs are the instruments, and the conductor is a third-party aggregator using software and real-time signals to coordinate them. Ahead of a peak demand event, the aggregator cues participating devices to respond together. At the critical moment, batteries increase their output, while flexible devices like smart thermostats and EV chargers briefly reduce or shift electricity use to relieve grid strain.
When a period of peak demand occurs, like a heatwave, when our air conditioners and fans are running overtime, these resources can be called upon on almost instantly. Individually, the changes are barely noticeable to customers. Collectively, they can provide the same grid support as a conventional power plant, at lower cost and with greater speed.
By harnessing community power in this way, Pennsylvania can meet rising demand more efficiently and strengthen grid reliability without relying solely on costly, slow-to-build infrastructure. As extreme heat and other severe weather events put increasing strain on the electric system, smarter coordination between distributed energy resources will be essential to keeping the lights on and preventing outages when demand is at its highest. And just as musicians who choose to join an orchestra are compensated for their performance, customers who opt into a VPP program would be paid for the value they provide to the grid—helping stabilize the system for everyone, especially during emergency conditions.
As states around the country realize the benefits of this type of program, numbers on its impact have rolled in. Analysis by RMI finds that VPPs could reduce annual U.S. power-sector expenditures by roughly $17 billion by 2030. These savings ultimately flow through to customers in the form of lower bills and improved reliability — demonstrating that VPPs are a proven strategy for controlling costs.
Representative Nate Davidson recently introduced legislation to require utilities to establish VPP programs that harness community energy resources. Now, lawmakers must act to advance this bill to the Governor’s desk. Passing this legislation would send a clear signal that Pennsylvania is serious about affordability, reliability, and modernizing its electric system. Other states are already moving ahead: similar legislation was enacted last year in Virginia on a bipartisan basis.
With smart policies, VPPs can play a key role in making energy more affordable and reliable for all Pennsylvanians. As electricity bills rise, Pennsylvania is ready for a new approach to utility spending, and there is no better time to act.
