VirginiaHB5622026 Regular SessionHouseWALLET

Electric cooperatives; authorized to establish and implement a virtual power plant program.

Sponsored By: David A. Reid (Democratic)

Became Law

Summary

Electric utilities; virtual power plant program; electric cooperatives. Authorizes electric cooperatives to establish and implement a virtual power plant program. The bill defines a virtual power plant as an aggregation of distributed energy resources, enrolled either directly with an electric cooperative or indirectly through an aggregator, that are operated in coordination to provide one or more grid services. Under the bill, an electric cooperative may offer incentives to residential customers to purchase battery storage devices and is required to evaluate various methods to optimize demand. This bill is identical to SB 487.

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 1 benefits, 1 costs, 2 mixed.

VPP costs can raise your rates

Starting Jan 1, 2027, your cooperative can recover VPP costs through your electric rates. It may set a new VPP rate schedule and must file it with the state for information. This can make your electric bill higher when program costs are included.

Co-ops can run virtual power plants

Beginning Jan 1, 2027, your electric cooperative can create and run a virtual power plant after its board approves it. The co-op files program details with the state and the plan can be reviewed at its next rate case. The VPP groups customer devices like batteries, smart thermostats, and managed EV charging that do not emit carbon and are up to 5 megawatts. The co-op must hold stakeholder meetings, set event limits and opt-out rules, and use pay-for-performance. It must consider extra incentives for historically economically disadvantaged communities and can remove customers who do not perform. The co-op must also show it looked for federal funding.

Co-op incentives for home batteries

Starting Jan 1, 2027, your co-op may offer incentives to help you buy a home battery. If it offers incentives, it must run a competitive bid open to co-op and non-co-op providers. The law does not set the incentive amount or who qualifies.

Third-party aggregators and data sharing

From Jan 1, 2027, third-party aggregators can enroll customers and operate their devices in a co-op VPP. They are not treated as electric utilities just for doing that. Under an agreement, the co-op shares participating customer and grid data with the aggregator.

Sponsors & Cosponsors

Sponsor

  • David A. Reid

    Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 321 • No: 2

House vote 3/2/2026

Senate substitute agreed to by House

Yes: 98 • No: 1

Senate vote 2/26/2026

Senator McPike Substitute agreed to

Yes: 0 • No: 0

Senate vote 2/26/2026

Passed Senate with substitute

Yes: 39 • No: 1

Senate vote 2/25/2026

Constitutional reading dispensed Block Vote (on 2nd reading)

Yes: 40 • No: 0

Senate vote 2/25/2026

Passed by for the day Block Vote (Voice Vote)

Yes: 0 • No: 0

Senate vote 2/23/2026

Reported from Commerce and Labor

Yes: 14 • No: 0

House vote 2/2/2026

Read third time and passed House Block Vote

Yes: 99 • No: 0

House vote 1/27/2026

Reported from Labor and Commerce

Yes: 22 • No: 0

House vote 1/22/2026

Subcommittee recommends reporting

Yes: 9 • No: 0

Actions Timeline

  1. Acts of Assembly Chapter text (CHAP0044)

    3/31/2026Governor
  2. Approved by Governor-Chapter 44 (effective 7/1/2026)

    3/31/2026Governor
  3. Fiscal Impact Statement from State Corporation Commission (HB562)

    3/12/2026House
  4. Governor's Action Deadline 11:59 p.m., April 13, 2026

    3/10/2026Governor
  5. Enrolled Bill communicated to Governor on March 10, 2026

    3/10/2026House
  6. Bill text as passed House and Senate (HB562ER)

    3/6/2026House
  7. Enrolled

    3/6/2026House
  8. Signed by President

    3/6/2026Senate
  9. Signed by Speaker

    3/6/2026House
  10. Senate substitute agreed to by House (98-Y 1-N 0-A)

    3/2/2026House
  11. Passed Senate with substitute (39-Y 1-N 0-A)

    2/26/2026Senate
  12. Senator McPike Substitute agreed to

    2/26/2026Senate
  13. Floor Offered

    2/26/2026Senate
  14. Floor substitute printed 26108702D-S1 (McPike)

    2/26/2026Senate
  15. Engrossed by Senate - floor substitute

    2/26/2026Senate
  16. Reading of substitute waived

    2/26/2026Senate
  17. Read third time

    2/26/2026Senate
  18. Passed by for the day Block Vote (Voice Vote)

    2/25/2026Senate
  19. Constitutional reading dispensed Block Vote (on 2nd reading) (40-Y 0-N 0-A)

    2/25/2026Senate
  20. Rules suspended

    2/25/2026Senate
  21. Reported from Commerce and Labor (14-Y 0-N)

    2/23/2026Senate
  22. Referred to Committee on Commerce and Labor

    2/3/2026Senate
  23. Constitutional reading dispensed (on 1st reading)

    2/3/2026Senate
  24. Read third time and passed House Block Vote (99-Y 0-N 0-A)

    2/2/2026House
  25. Read second time and engrossed

    1/30/2026House

Bill Text

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