Pennsylvania HB 2380: An Act amending Title 66 (Public Utilities) of the Pennsylvania Consolidated Statutes, in restructuring of electric utility industry, providing for energy storage procurement.

Bill Text

PRIOR PRINTER'S NO. 3424 PRINTER'S NO. 3630
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 2380
Session of
2026
INTRODUCED BY RIVERA, FIEDLER, WEBSTER, OTTEN, WAXMAN, SANCHEZ,
HILL-EVANS, CEPEDA-FREYTIZ, HOHENSTEIN, PROBST, PIELLI,
VENKAT, McNEILL, VITALI, NEILSON, INGLIS, BOROWSKI, BOYD,
MAYES, CURRY, CIRESI, STEELE, RABB, MALAGARI, MAZZOCCO,
KRAJEWSKI, FRANKEL, FRIEL, SALISBURY, FREEMAN, O'MARA,
SHUSTERMAN, BRENNAN AND KHAN, MAY 21, 2026
AS REPORTED FROM COMMITTEE ON ENERGY, HOUSE OF REPRESENTATIVES,
AS AMENDED, JUNE 17, 2026
AN ACT
Amending Title 66 (Public Utilities) of the Pennsylvania
Consolidated Statutes, in restructuring of electric utility
industry, providing for energy storage procurement.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 66 of the Pennsylvania Consolidated
Statutes is amended by adding a section to read:
§ 2807.1. Energy storage procurement.
(a) Energy storage program.--The commission shall require
each electric distribution company to establish an energy
storage program that is designed to achieve at least 3,000 3,500
total megawatts of capacity in the aggregate from front-of-the-
meter energy storage systems by July 1, 2033 31, 2035 . The total
megawatts of capacity shall consist of at least 2,000 megawatts
of short-duration storage and , 1,000 megawatts of long-duration
storage . AND 500 MEGAWATTS OF MULTIDAY STORAGE. <--
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(B) PERMITTED USES.--AN ELECTRIC DISTRIBUTION COMPANY SHALL
UTILIZE THE DISTRIBUTION-CONNECTED AND TRANSMISSION-CONNECTED
ENERGY STORAGE SYSTEMS PROCURED UNDER THIS SECTION TO PERFORM
GRID SERVICES DURING PEAK OR OFF-PEAK DEMAND PERIODS, INCLUDING
THE FOLLOWING:
(1) PEAK DEMAND REDUCTION AND PEAK LOAD MANAGEMENT.
(2) FREQUENCY REGULATION, VOLTAGE SUPPORT AND OTHER
ANCILLARY SERVICES.
(3) AVOIDING OR DEFERRING TRADITIONAL CAPITAL
INVESTMENTS ON THE DISTRIBUTION SYSTEM OR TRANSMISSION
SYSTEM.
(4) BACKUP GENERATION SERVICES DURING OUTAGES OR OTHER
ELECTRIC SERVICE DISRUPTIONS.
(5) EXCEPT FOR DISTRIBUTION-CONNECTED STORAGE,
PARTICIPATION IN THE WHOLESALE ENERGY, CAPACITY OR ANCILLARY
MARKETS OF THE REGIONAL TRANSMISSION ORGANIZATION IN WHICH
THE ELECTRIC DISTRIBUTION COMPANY PARTICIPATES.
(6) ANY OTHER GRID SERVICES APPROVED BY THE COMMISSION
TO BENEFIT RATEPAYERS AND IMPROVE THE RELIABILITY OF THE
DISTRIBUTION OR TRANSMISSION SYSTEM.
(C) SYSTEM RELIABILITY ASSESSMENT.--
(1) WITHIN 180 DAYS OF THE EFFECTIVE DATE OF THIS
SECTION, EACH ELECTRIC DISTRIBUTION COMPANY SHALL CONDUCT AND
SUBMIT AN ASSESSMENT TO THE COMMISSION ON THE RELIABILITY OF
THE DISTRIBUTION AND TRANSMISSION SYSTEM WITHIN THE ELECTRIC
DISTRIBUTION COMPANY'S SERVICE TERRITORY.
(2) THE COMMISSION'S CALCULATIONS AND ASSIGNMENT OF
CAPACITY TARGETS UNDER SUBSECTION (D) SHALL BE BASED ON THE
COMMISSION'S REVIEW AND FINDINGS FROM THE ASSESSMENT
COMPLETED UNDER THIS SUBSECTION, INCLUDING THE ASSIGNMENT OF
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SPECIFIC TARGETS FOR DISTRIBUTION-CONNECTED AND TRANSMISSION-
CONNECTED ENERGY STORAGE SYSTEMS BASED ON THE IDENTIFIED
RELIABILITY NEEDS DESCRIBED IN THE ASSESSMENT.
(3) THE ASSESSMENT SHALL IDENTIFY, AT MINIMUM, THE
FOLLOWING:
(I) SPECIFIC AREAS OF THE DISTRIBUTION SYSTEM AND
TRANSMISSION SYSTEM WITH SYSTEM CONSTRAINTS AND
CONGESTION POINTS.
(II) THE RELIABILITY NEEDS OF THE TRANSMISSION AND
DISTRIBUTION SYSTEM THAT MAY BE ADDRESSED BY THE
PROCUREMENT OF ENERGY STORAGE SYSTEMS, INCLUDING SHORT-
DURATION, LONG-DURATION AND MULTIDAY STORAGE.
(III) AN ANALYSIS OF THE MEGAWATTS OR MEGAWATT-HOURS
OF CAPACITY FROM ENERGY STORAGE SYSTEMS NEEDED TO SERVE
AS A COST-EFFECTIVE ALTERNATIVE TO TRADITIONAL CAPITAL
INVESTMENTS ON THE DISTRIBUTION AND TRANSMISSION SYSTEM.
(IV) AN ANALYSIS TO DETERMINE THE TECHNICAL
FEASIBILITY OF THE PROCUREMENT OF DISTRIBUTION-CONNECTED
AND TRANSMISSION-CONNECTED ENERGY STORAGE SYSTEMS TO
PROVIDE GRID SERVICES OR ADDRESS THE RELIABILITY NEEDS OF
THE TRANSMISSION AND DISTRIBUTION SYSTEM.
(V) AN ANALYSIS OF THE MOST PRACTICAL AND COST-
EFFECTIVE APPLICATIONS OF SHORT-DURATION, LONG-DURATION
AND MULTIDAY DURATION STORAGE ON THE DISTRIBUTION AND
TRANSMISSION SYSTEM TO IMPROVE SYSTEM PERFORMANCE AND
DELIVER COST SAVINGS TO RATEPAYERS.
(VI) ANY OTHER INFORMATION OR SUPPORTING DATA
REQUIRED BY THE COMMISSION TO PROPERLY CALCULATE THE
APPORTIONED SHARE OF ENERGY STORAGE CAPACITY FOR EACH
ELECTRIC DISTRIBUTION COMPANY.
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(b) (D) Allocation of capacity targets.--Within 60 days of
the effective date of this subsection, FOLLOWING THE SUBMISSION
OF AN ASSESSMENT UNDER SUBSECTION (C), the commission shall
calculate and assign each electric distribution company's
apportioned share of the 3,000 3,500 total megawatts of capacity
for short-duration storage and , long-duration storage AND
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