Virginia General Assembly passes bill permitting electric cooperatives to establish virtual power plant programs

A bill recently passed in Virginia, introduced by Del. David A. Reid, authorizes electric cooperatives to create and manage regulated virtual power plant programs, including specific provisions for customer incentives and program assessment, as noted by the Virginia State House.

The legislation received approval from both the House and Senate and was formally enrolled on March 6, 2026. The House approved the bill by a 99-0 vote, while the Senate supported it with a 39-1 vote.

Designated as HB562 and introduced on Jan. 14, 2026, during the 2026 regular session, the bill was summarized by the legislature as: “Electric cooperatives; authorized to establish and implement a virtual power plant program.”

The following analysis is based on the full bill text as interpreted to clarify its details.

The legislation enables electric cooperatives, beginning Jan. 1, 2027, to initiate and operate regulated virtual power plant programs without initial approval from the State Corporation Commission, though rates will be reviewed afterward. The measure sets definitions, allows aggregation of customer-sited clean distributed energy resources, and requires a filing regarding rates. Cooperatives are directed to pursue federal grants, consider incentives for home battery storage, and use competitive processes for selecting storage providers. It also mandates evaluation of program design, customer incentives, opt-out provisions, performance-based compensation for grid services, and provides higher incentives to customers in historically underserved communities.

In the House, the bill saw support from 64 Democrats and 35 Republicans.

Senate approval included votes from 21 Democrats and 18 Republicans; one Republican voted against the bill.

Del. David A. Reid (Democrat-28th District) served as the sole sponsor of the bill.

Reid is a 1984 graduate of Northeastern Oklahoma State University, where he earned a bachelor’s degree.

The Democrat, first elected to the Virginia State House in 2024, succeeded Tara Durant in representing the 28th District.

The legislative process in Virginia starts with the introduction of a bill in either chamber. From there, it is assigned to relevant committees for examination and potential revisions. Following committee approval, the measure goes to the floor for debate and voting in both the House and Senate. Passage by both chambers sends the bill to the governor, who may sign, veto, or allow it to take effect without a signature. The Virginia General Assembly meets each year beginning the second Monday in January; hundreds of bills are introduced per session, but only some become law.

Details in this report were sourced from the Virginia State House. Access original data here.