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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 communities within the
electric distribution company's service territory.
(v) Experts in grid security and resilience.
(vi) Any other pertinent group or entity determined
by the electric distribution company or the commission.
(d) Approval criteria.--When considering an application for
approval under subsection (c), the commission shall consider all
of the following:
(1) Whether the investments, programs and expenditures
are reasonably expected to improve the public utility's
system efficiency, security and operational flexibility.
(2) Whether the investments, programs and expenditures
increase the resilience and security of critical
infrastructure.
(3) Whether the investments, programs and expenditures
position the electric distribution company to meet and enable
increasing electricity demand from transportation
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electrification and other growing sectors.
(4) Whether the costs of the investments, programs and
expenditures are reasonably mitigated through the utilization
of available Federal and State security incentives and
funding programs, including direct and indirect grants.
(5) Whether the investments, programs and expenditures
support private capital investments and skilled jobs in
related security services.
(6) Whether the investments, programs and expenditures
are transparent and incorporate public reporting
requirements.
(e) Plan approval or disapproval.--
(1) The commission shall, after reasonable notice and
hearing and within 180 days of submission of an application
under subsection (c), approve or disapprove the grid
infrastructure development plan.
(2) If the commission does not approve the plan, the
commission shall describe in detail the reasons for the
disapproval, and the electric distribution company may file,
within 60 days, a revised plan to address the deficiencies.
(3) The commission shall approve or disapprove the
revised plan within 60 days of receipt.
(f) Additional plans.--An electric distribution company
shall file an updated grid infrastructure development plan five
years after the initial approval of the plan.
(g) Recovery of costs.--A public utility that engages in
measures to enhance grid security infrastructure in accordance
with a plan approved under subsection (e) may recover the public
utility's reasonable costs through a commission-approved tariff
rider or base rate.
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(h) Definitions.--As used in this section, the following
words and phrases shall have the meanings given to them in this
subsection unless the context clearly indicates otherwise:
"Grid security." The protection of the electrical grid from
physical, cyber and operational threats to ensure continuous
reliable service.
"Transportation electrification." The use of electricity to
power vehicles.
"Underserved community." A community that meets any of the
following criteria:
(1) Qualified census tracts with high poverty rates or
public health concerns.
(2) Public school zones with a high percentage of
students eligible for free or reduced-price meals.
(3) Areas vulnerable to significant grid disruptions or
security threats.
Section 2. This act shall take effect in 90 days.
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