Maryland

Pepco Seeks Approval for Virtual Power Plant Program in Maryland

Pepco has submitted a proposal under Maryland’s 2024 Distributed Renewable Integration and Vehicle Electrification, or DRIVE, Act that would use customer-owned devices such as home battery storage systems, electric vehicles, smart thermostats and other flexible energy resources to help support the electric grid during periods of high demand.

Under the proposal, residential and commercial customers who enroll in the program could earn incentives in exchange for allowing Pepco to temporarily adjust how those devices use electricity. Pepco said the goal is to reduce strain on the grid, improve reliability and help control long-term energy costs for customers.

The proposal would also move Pepco’s existing load management programs, which are currently filed under EmPOWER Maryland, into the DRIVE Act framework in an effort to create a more streamlined customer experience and clearer oversight. Pepco said the plan could direct up to 185 megawatts of flexible load resources, which it says is enough to power about 110,000 to 120,000 homes, to help reduce peak demand and in some cases export power from customer batteries and EVs back to the distribution grid. If approved, the program would launch as a two-year pilot, with results helping shape future permanent programs. A hearing before the Maryland Public Service Commission is scheduled for April 7 and 8, 2026.