Key Takeaways

  • The Illinois Commerce Commission (ICC) has approved a battery-based "Scheduled Distributed Virtual Power Plant" (SDVPP) proposal from Chicago-area utility Commonwealth Edison (ComEd), the company announced last week.
  • The program replaces ComEd's earlier, more limited VPP proposal, which was withdrawn in November. The withdrawal came after the passage of Illinois' landmark Clean and Reliable Grid Affordable Act (CRGA). CRGA aims to increase distributed battery storage capacity in northern Illinois (the westernmost part of the PJM Interconnection grid) to address growing grid congestion and rising capacity prices.
  • Andrew Plenge, ComEd's vice president of strategy and energy policy, said in a statement that the SDVPP program "is an important step in enhancing the potential of customer-side energy resources, helping to improve grid resilience during peak demand periods, while also helping customers receive additional value for their support as power supply costs rise."

In-Depth Analysis

Democratic Illinois Governor J.B. Pritzker signed the Clean and Reliable Grid Affordable Act in January. This came shortly after a U.S. congressional report found that Illinois retail electricity prices rose more than 15% in 2025. Illinois' grid is managed by both PJM and the Midcontinent Independent System Operator (MISO), both of which have seen significant increases in capacity prices.

CRGA requires Illinois utilities to deploy 3 gigawatts (GW) of storage capacity by 2030 and to develop virtual power plants that utilize distributed assets such as residential and small commercial batteries, electric vehicle chargers, and HVAC control systems. The law also includes other load management measures, including expanding energy efficiency programs and requiring utilities to offer residential time-of-use rate plans.

Will Kenworthy, Midwest regulatory director for Vote Solar, said in a statement that ComEd's SDVPP "is exactly what Illinois lawmakers envisioned when they passed the Clean and Reliable Grid Affordable Act last fall"—"a way for distributed energy resources to quickly deliver value to the entire grid." Kenworthy praised ComEd for quickly launching the program and called it "a model for how the clean energy transition can save money for customers."

ComEd said the SDVPP will release power from enrolled batteries during periods of high electricity demand, helping to shave load peaks and thereby relieve stress on the grid in the densely populated Chicago area.

PJM's instantaneous load reached 162.7 GW on July 2, less than 3 GW shy of its all-time peak demand record set in 2006. The grid operator, whose service territory extends from northern Illinois to New Jersey, said it likely would have broken the 2006 record had it not been for strong demand response participation.

ComEd said it currently has approximately 1.8 GW of distributed energy resources connected to its grid.

According to ComEd's filing with the ICC, SDVPP participants must commit to participating for five consecutive seasons, with each season running from June 1 through September 30. Participants will receive seasonal performance payments based on the amount of electricity they inject into ComEd's distribution grid during peak events.