The 50 States of Grid Modernization: Utilities Pursue Tools for Demand Management and Grid Flexibility in Q1 2025
Raleigh, NC – (April 24, 2025) The NC Clean Energy Technology Center (NCCETC) released its Q1 2025 edition of The 50 States of Grid Modernization. The quarterly series provides insights on state regulatory and legislative discussions and actions on grid modernization, utility business model and rate reforms, energy storage, microgrids, and demand response.
The report finds that 47 states, as well as the District of Columbia and Puerto Rico, took actions related to grid modernization during Q1 2025 (see figure below), with the greatest number of actions relating to energy storage deployment (52), interconnection rules (32), smart grid deployment (31), utility business model reforms overall (27), time-varying rates (25), and performance-based regulation (20). Note that beginning this quarter, action counts include only regulatory activities and legislation that has passed at least one chamber, with all introduced bills available in an appendix to the report.
A total of 362 grid modernization actions were taken during Q1 2025, in addition to 364 introduced bills that have not yet passed a legislative chamber. Connecticut, Michigan, Minnesota, Texas, and Virginia saw the most action during the quarter, followed by California, New Mexico, and Wisconsin.
Q1 2025 Legislative and Regulatory Action on Grid Modernization
The report discusses three trends in grid modernization actions taken in Q1 2025: (1) regulatory commissions approving critical peak pricing rates for residential customers, (2) utilities pursuing virtual power plant programs, and (3) lawmakers encouraging utilities to deploy grid-enhancing technologies.
“This quarter, we have seen efforts for enhancements in both the distribution and transmission portions of the electric grid,” noted Vincent Potter, Project Manager at NCCETC, “Lawmakers and regulators are working to advance VPP [virtual power plant] programs – recently proposed VPP programs would compensate aggregators for services at the transmission and distribution levels. These programs can allow distribution-level resources, such as residential solar and storage, to provide upstream benefits to the grid.”
The report notes the top five policy developments of Q1 2025 were:
- FERC approving the Southwest Power Pool’s Markets+ tariff;
- Colorado and Georgia utilities proposing new virtual power plant programs;
- Missouri legislators passing a bill mandating standard residential rate options;
- New York regulators releasing the state’s first Grid of the Future Plan; and
- The Governor’s Energy Office of Maine releasing its final report on the feasibility of a distribution system operator.
“As time-of-use rates continue to be implemented nationwide, critical peak pricing, a form of time-varying rate, has been gaining in popularity,” observed Emily Apadula, Policy Analyst at NCCETC. “This quarter, regulators in multiple states approved critical peak pricing programs, allowing utilities to notify and charge customers for energy usage during periods of unusually high demand. The adoption of these programs continues a trend for utilities encouraging customers to shift electricity consumption to periods of lower demand.”
View the 50 States of Grid Modernization Q1 2025 Quarterly Report Executive Summary
View and Purchase the 50 States of Grid Modernization Q1 2025 Quarterly Report
ABOUT THE NC CLEAN ENERGY TECHNOLOGY CENTER
The NC Clean Energy Technology Center, as part of the College of Engineering at North Carolina State University, advances a sustainable energy economy by educating, demonstrating and providing support for clean energy technologies, practices and policies. It serves as a resource for innovative, sustainable energy technologies through technology demonstration, technical assistance, outreach and training. For more information about the Center, visit: http://www.nccleantech.
Media Contact: Shannon Helm, NCCETC, shannon_helm@ncsu.edu