Pennsylvania HB 705: An Act amending Title 66 (Public Utilities) of the Pennsylvania Consolidated Statutes, in restructuring of electric utility industry, providing for development of grid infrastructure.

Bill Text

PRINTER'S NO. 724
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 705
Session of
2025
INTRODUCED BY WEBSTER, HOHENSTEIN, PIELLI, HILL-EVANS, SANCHEZ,
KHAN, CERRATO AND CIRESI, FEBRUARY 24, 2025
REFERRED TO COMMITTEE ON ENERGY, FEBRUARY 24, 2025
AN ACT
Amending Title 66 (Public Utilities) of the Pennsylvania
Consolidated Statutes, in restructuring of electric utility
industry, providing for development of grid infrastructure.
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:
§ 2816. Development of grid infrastructure.
(a) Coordination.--The commission shall ensure adequate
coordination among electric distribution companies to prepare
this Commonwealth for the grid capacity and resilience needed to
ensure the reliable and secure operation of the grid in response
to increased demand from quickly growing industries.
(b) Guidelines.--No later than 180 days after the effective
date of this section, the commission shall issue guidelines for
electric distribution companies to prepare infrastructure
development plans to promote grid security and improve the
resilience and reliability of the grid while addressing growing
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demand. The plan shall address all of the following:
(1) The establishment of a secure, resilient grid
network capable of withstanding cyber and physical threats,
as well as any capacity expansion or other modification
required to maintain reliability and meet demand from new and
growing sectors, including transportation electrification.
(2) The electrification of critical public
infrastructure, including public transit, emergency services
and governmental fleets, to enhance the resilience and
recovery capabilities of this Commonwealth, specific
inclusion of long-term projects and plans for increases in
demand from emerging industries, including increased electric
vehicles designed for light, medium and heavy duty, data
centers and other large load customers.
(3) Deployment of grid modernization technologies,
including energy storage systems, microgrids, electric
vehicle charging stations and advanced metering
infrastructure to improve grid security and resilience.
(4) Requirements to ensure that electric distribution
company development plans are implemented in a competitive
and nondiscriminatory manner with opportunities for third-
party security vendors and technology providers.
(5) Open standard communication protocols for grid
operations and system interoperability to enhance security
against cyber threats.
(6) Policies to ensure grid infrastructure is deployed
in underserved and high-risk areas vulnerable to grid
disruptions.
(c) Grid infrastructure development plans.--
(1) An electric distribution company shall, consistent
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with the guidelines issued under subsection (b), file an
application for approval of a grid infrastructure development
plan with the commission within one year of the effective
date of this section.
(2) The plan shall:
(i) Describe the electric distribution company's
proposal to ensure the resilience, security and
reliability of the grid while meeting Federal and State
energy security standards.
(ii) Include strategies to optimize grid
performance, including demand management, distributed
generation integration, deployment of infrastructure to
support transportation electrification and advanced
cybersecurity measures.
(iii) Include an evaluation of the impact that
implementation of the plan will have on the following:
(A) Increased grid security and reliability,
particularly in areas where critical infrastructure
is located.
(B) The expansion and strengthening of the
transmission and distribution network to withstand
physical and cyber threats.
(C) The expansion and strengthening of the
transmission and distribution network to meet
electricity demand from new and growing sources,
including an evaluation of public electric vehicle
charging infrastructure and vehicle adoption rates.
(D) Economic activity and economic development
within the public utility's service territory,
including capital investments, the direct or indirect
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creation of jobs and additions to the tax base of
this Commonwealth.
(E) The rates charged to the bundled retail
customers of the public utility.
(F) The financial risk to customers of the
public utility, including impacts on low-income
ratepayers.
(3) The electric distribution company shall develop the
plan in consultation with all of the following:
(i) The Department of Transportation.
(ii) The Department of Environmental Protection.
(iii) The Pennsylvania Emergency Management Agency.
(iv) Local and regional governments and
representatives of underserved communi