Virginia Electric Cooperatives Virtual Power Plant Authorization
Summary
Virginia General Assembly enacted HB562, authorizing electric cooperatives to establish and implement virtual power plant programs. The bill defines virtual power plants as aggregations of distributed energy resources operated in coordination to provide grid services. Electric cooperatives may now offer incentives to residential customers for battery storage devices and must evaluate demand optimization methods. The bill takes effect July 1, 2026.
What changed
HB562 enacts legislation in Virginia authorizing electric cooperatives to establish virtual power plant programs. The bill defines a virtual power plant as an aggregation of distributed energy resources enrolled directly with an electric cooperative or indirectly through an aggregator, operated in coordination to provide grid services. The legislation permits cooperatives to offer incentives to residential customers purchasing battery storage devices and requires evaluation of demand optimization methods. The companion bill SB487 contains identical provisions.
Electric cooperatives in Virginia must prepare to implement virtual power plant programs by the effective date of July 1, 2026. Cooperatives should begin evaluating distributed energy resource aggregation models, demand optimization strategies, and potential residential battery storage incentive programs. The State Corporation Commission issued a fiscal impact statement on the bill, indicating ongoing regulatory oversight of implementation. No specific penalties are enumerated in the bill.
What to do next
- Develop virtual power plant program framework and enrollment processes
- Evaluate distributed energy resource aggregation models and aggregator partnerships
- Design residential battery storage incentive programs and demand optimization strategies
Source document (simplified)
ChangeBridge / Virginia / HB562 Enacted HB562 House Bill Enacted 2026-03-31
Electric cooperatives; authorized to establish and implement a virtual power plant program.
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.
Bill Details
State Virginia
Session 2026 Regular Regular Session
Chamber House
Official Source lis.virginia.gov/bill-details/20261/HB562
LegiScan View on LegiScan
Sponsors
David Reid (Rep - D)
Action History
2026-03-31 Acts of Assembly Chapter text (CHAP0044) 2026-03-31 Approved by Governor-Chapter 44 (effective 7/1/2026) 2026-03-12 H Fiscal Impact Statement from State Corporation Commission (HB562) 2026-03-10 Governor's Action Deadline 11:59 p.m., April 13, 2026 2026-03-10 H Enrolled Bill communicated to Governor on March 10, 2026 2026-03-06 S Signed by President 2026-03-06 H Signed by Speaker 2026-03-06 H Bill text as passed House and Senate (HB562ER) 2026-03-06 H Enrolled 2026-03-02 H Senate substitute agreed to by House (98-Y 1-N 0-A) 2026-02-26 S Passed Senate with substitute (39-Y 1-N 0-A) 2026-02-26 S Engrossed by Senate - floor substitute 2026-02-26 S Senator McPike Substitute agreed to 2026-02-26 S Reading of substitute waived 2026-02-26 S Floor offered Senator McPike Substitute 2026-02-26 S Read third time 2026-02-26 S Floor substitute printed 26108702D-S1 (McPike) 2026-02-25 S Passed by for the day Block Vote (Voice Vote) 2026-02-25 S Constitutional reading dispensed Block Vote (on 2nd reading) (40-Y 0-N 0-A) 2026-02-25 S Rules suspended 2026-02-23 S Reported from Commerce and Labor (14-Y 0-N) 2026-02-03 S Referred to Committee on Commerce and Labor 2026-02-03 S Constitutional reading dispensed (on 1st reading) 2026-02-02 H Read third time and passed House (99-Y 0-N 0-A) 2026-01-30 H Read second time and engrossed 2026-01-29 H Read first time 2026-01-27 H Reported from Labor and Commerce (22-Y 0-N) 2026-01-22 H Subcommittee recommends reporting (9-Y 0-N) 2026-01-20 H Assigned HCL sub: Subcommittee #3 2026-01-19 H Fiscal Impact Statement from State Corporation Commission (HB562) 2026-01-13 H Referred to Committee on Labor and Commerce 2026-01-13 H Prefiled and ordered printed; Offered 01-14-2026 26105224D
Votes
2026-01-22 Subcommittee recommends reporting (9-Y 0-N) Yea: 9 Nay: 0 2026-01-27 Reported from Labor and Commerce (22-Y 0-N) Yea: 22 Nay: 0 2026-02-02 Read third time and passed House (99-Y 0-N 0-A) Yea: 99 Nay: 0 2026-02-23 Reported from Commerce and Labor (14-Y 0-N) Yea: 14 Nay: 0 2026-02-25 Constitutional reading dispensed Block Vote (on 2nd reading) (40-Y 0-N 0-A) Yea: 40 Nay: 0 2026-02-26 Passed Senate with substitute (39-Y 1-N 0-A) Yea: 39 Nay: 1 2026-03-02 Senate substitute agreed to by House (98-Y 1-N 0-A) Yea: 98 Nay: 1
Committee Referrals
2026-01-13 H Labor and Commerce 2026-01-20 H Labor and Commerce: Subcommittee #3 2026-02-03 S Commerce and Labor
Bill Text Versions
2026-01-13 Introduced 2026-02-26 Comm Sub 2026-03-06 Enrolled 2026-03-31 Chaptered Legislative data powered by LegiScan (CC BY 4.0)
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