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Utility Dive’s Feb.

2026-02-17 · 18:58 UTC ·Utility Dive: Storage ·4 min read

Brief

The Feb. 17, 2026 Utility Dive: Storage Weekly newsletter centers on how storage and distributed energy are moving from optional add-ons to core grid and load-growth infrastructure. The most relevant item for large-load development is Bank of America’s view that storage becomes effectively “non-optional” in 2026 for hyperscalers and data centers, which are prioritizing affordable, quickly available power by pairing firm on-site generation with batteries and then layering in solar for lower marginal energy costs. On the policy side, New Mexico is considering a VPP bill that would open participation to third-party aggregators and require investor-owned utilities to offset 15% of peak demand, while a Minnesota procurement debate could set precedent for competitive distributed capacity markets. The newsletter also flags execution risk in federal energy policy, citing a GAO critique that DOE lacks an oversight plan for $21.5 billion in IIJA clean-energy demonstration funding, and highlights Duke Energy’s unusually large $103 billion capital plan as evidence of the scale of regulated utility investment now underway.

Why it matters

Utility Dive’s Feb. 17, 2026 storage newsletter highlights policy, utility capex, and data-center power trends shaping U.S. grid infrastructure.

Key details

  • New Mexico lawmakers are considering a virtual power plant bill that would let third-party aggregators participate; if enacted, the state’s three investor-owned utilities would need to offset 15% of peak demand and offer customers five-year rate locks.
  • Bank of America Securities analyst Dimple Gosai said data centers’ top 2026 utility concern is affordability, with hyperscalers increasingly seeking fast-to-deploy on-site power that is “firm and smooth with storage,” then supplemented with solar as the lowest-cost marginal energy.
  • A GAO finding says the Department of Energy lacks a plan to oversee billions in energy funds, despite the IIJA providing about $21.5 billion in no-year appropriations for clean energy demonstration projects that require ongoing application review and monitoring.
  • Duke says it has the largest spending plan of any regulated U.S. utility at $103 billion, and CEO Harry Sideris said the company is already deploying more than $1 billion of capital per month while its North Carolina utility has a rate case pending.
  • An opinion piece argues Minnesota’s distributed capacity procurement decision could influence grid design beyond the state if the Public Utilities Commission adopts an open, competitive participation framework.
Cleaned source text

title: Feb. 17 - NM lawmakers eye VPPs | Storage becomes ‘non-optional’ in ‘26: BofA

author: Utility Dive: Storage

content_type: newsletter

publication: divenewsletter.com

published: 2026-02-17T13:58:06-05:00

source_url: gmail://19c6cf7a188921f3

word_count: 821

Storage weekly

Feb. ​ 17,​ 2026 | This week’s storage news and insights for utility leaders

UPDATED

New Mexico VPP bill would allow third-party aggregators to participate

If the bill becomes law, the state’s three investor-owned utilities would need to offset 15% of peak demand and allow customers to lock in rates for five years.

Data centers pursue on-site power as affordability tops utility concerns: BofA

Hyperscalers are looking to secure power fast, “firm and smooth with storage, then layer in solar as the lowest-cost marginal energy,” wrote Bank of America Securities analyst Dimple Gosai.

Opinion

Minnesota’s distributed capacity procurement decision could shape the grid far beyond its borders

The Minnesota Public Utilities Commission should approve a framework that supports open, competitive participation, writes Coalition for Community Solar Access CEO Jeff Cramer.

Build a future-ready grid with smart communication strategies

DOE ‘does not have a plan’ for oversight of billions in energy funds: GAO

Since the IIJA appropriated about $21.5 billion of “no-year appropriations” for clean energy demonstration projects, DOE will “have an ongoing need to solicit and review applications for additional projects,” the U.S. Government Accountability Office said.

At $103B, Duke claims largest spending plan of any regulated US utility

The company is already deploying more than $1 billion in capital every month, CEO Harry Sideris said. Its North Carolina utility has a rate case pending.

What We’re Reading

Energy Storage News

Base Power partners with El Paso Electric, Sonnen launches ‘battery-only’ Texas VPP programme

Canary Media

NineDot Energy raises big money for small batteries in New York City

Portland Press Herald

Massive battery storage facility opens in Gorham, furthering Mills’ energy agenda

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