LANSING, Mich. (March 19, 2026) — Today, the Senate Committee on Energy and Environment passed Senate Bills 731–732. Championed by Sens. Sue Shink (D-Northfield Twp.) and Jeff Irwin (D-Ann Arbor), this legislation would use virtual power plants to improve energy efficiency and grid reliability, reducing utility costs for Michigan consumers.
“Advancing this package brings us one step closer to delivering sustainable, reliable, and more affordable energy options to hardworking Michigan families,” said Sen. Shink. “As we see the Trump administration throw away millions of dollars on outdated energy infrastructure, I am even more determined to prioritize energy production here in Michigan that is both healthier and cheaper.”
This legislation would direct the Michigan Public Service Commission to establish regulations requiring utilities to include virtual power plants in their plans for distribution and transmission. The virtual power plant aggregators and the owners of individual behind-the-meter resources would be compensated for grid services that increase grid resilience and reliability or provide net savings to ratepayers.
“Virtual Power Plants lower electricity rates by harnessing the most affordable energy of all— by meeting our needs through better use of the resources we already have, such as batteries or smart thermostats,” said Sen. Irwin. “I’m glad to see this legislation moving forward so that we can all benefit from less waste and smarter use of technology.”
Virtual power plants aggregate existing distributed energy resources, including not just distributed generation but also storage and demand response to meet fluctuations in electrical demand. They deploy resources and downregulate demand as needed, avoiding the need for costly “peaker plants” to meet demand spikes. When more electricity is needed, virtual power plants coordinate diverse resources in decentralized locations by bringing distributed generation online, pulling stored energy from batteries or vehicles and stepping down high-demand uses. Virtual power plants also enable cleaner sources of electrical generation by evening out fluctuations in supply from solar or wind.
This legislation now heads to the full Senate floor for consideration.