Advocacy News – Feb. 19, 2026
What’s happening: The Michigan Chamber testified Thursday voicing concerns on Senate Bills 731 and 732 that would require the Michigan Public Service Commission (MPSC) to establish programs allowing third party “aggregators” to manage distributed energy resources (DERs) – such as rooftop solar, battery storage and other behind-the-meter technologies – and sell grid services for compensation.
- In plain English: These bills would allow outside companies to bundle customer-owned energy resources and operate them like a “virtual power plant” or VPPs.
Why it matters: As Michigan and other states see continued growth of distributed and renewable energy, maintaining grid reliability and protecting ratepayers becomes more complex.
- Virtual power plants are increasingly discussed – but remain loosely defined.
- Without clear guardrails, shifting grid management to third parties could introduce new risks for reliability and cost recovery.
- Energy customers ultimately bear the financial risk if programs are not structured carefully.
What’s next: The MPSC recently ordered a structured workgroup process with broad stakeholder input to study VPP models and evaluate potential benefits, risks and consumer protections before moving forward.
What we’re saying: Innovation that expands energy capacity and helps moderate rates is good for Michigan. But any move toward virtual power plant models must be:
- Transparent
- Deliberate
- Structured with strong consumer safeguards
- Grounded in reality and cost protections
Moving too quickly without defined protections could create unintended consequences for businesses and households alike.
For questions or more information, contact Mike Alaimo.