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A 11419

Relates to establishing guidelines for the connection of utility service for high-usage customers

2025 Regular Session Introduced by Ken Blankenbush and 6 co-sponsors

Establishes a framework to connect high-usage electric service with defined processes, cost allocation to the customer, and environmental/water-use requirements.

REFERRED TO ENERGY
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Bill Summary · A 11419

Overview

A 11419 is a New York bill enacted in the 2025-2026 session proposed by the Rules committee (at the request of Assembly Member Gray) and referred to the Energy Committee. The measure creates a framework for connecting electric service to high-usage customers, including the processes for large-scale service requests, contracts with electric utilities or large-scale generation providers, and the role of private or connected generation systems. It also touches on related environmental zoning, water use, and wastewater planning requirements for facilities serving such customers.

Main purpose and intent

  • Establish formal guidelines for connecting electric service to high-usage customers, defined as entities within an electric utility’s service territory that (a) file a large-scale service request or (b) enter a private generation contract with a generation provider.
  • Create a structured process for evaluating, contracting, financing, and approving high-usage service arrangements, with explicit duties for utilities, generation providers, and regulators.
  • Clarify compliance, cost allocation, and risk management so incremental high-usage costs are borne by the high-usage customer rather than recovering them through general retail rates.
  • Add related zoning and environmental considerations for facilities serving high-usage loads.

Key provisions and changes

  • Definition section (66-x):
    • High-usage customer: requests electric service via a large-scale service request or enters a private generation contract.
    • Large-scale service request: new service reaching 100 MW+ within five years, or additional service increasing total demand by 100 MW+ within five years.
    • Closed private generation system: self-contained generation serving high-usage customers, not interconnected with the utility transmission system.
    • Connected generation system: generation connected to the utility transmission system, serving high-usage customers.
    • Large-scale generation provider: non-utility entity owning/operating generation resources for high-usage contracts.
    • Private generation contract: service via a closed private system between a provider and the high-usage customer.
    • Evaluation: utility assessment of system impact, necessary upgrades, capacity and timeline estimates.
  • Application and procedures:
    • High-usage customers (except private generation) must file a large-scale service request with the local electric utility.
    • Large-scale service requests require detailed information (customer ID, location, proposed demand, start date, load profile, financial capability, resale prohibition).
    • Utilities must keep information current and notify of changes.
    • Utilities must acknowledge requests, identify missing information within 15 business days, and complete evaluation within six months; provide regular updates.
    • Within 15 days after evaluation, utilities must issue a written service proposal detailing feasibility, estimated incremental costs, required upgrades, timelines, and contract terms.
    • Utilities may charge fees for evaluations and related assessments; work on evaluation begins only after payment and information provision.
  • High-usage contract requirements:
    • Service must be under a high-usage contract with a utility or a large-scale generation provider (or combination).
    • Customer must contract for all projected requirements and maintain sufficient resources to meet actual load.
    • Contracts must specify interconnection points, capacity, term, backup provisions, curtailment rules, assigned generation resources, and long-term O&M cost allocations.
    • Utilities may not be required to provide backup power unless explicitly provided in the contract.
    • No obligation to commence design/construction until a construction contract and commission approval are obtained.
    • Commission approval required for high-usage contracts; review limited to contract compliance, cost allocation to the customer, and protection of existing ratepayers.
    • Commission must issue a ruling within 60 days of filing.
  • Private generation contracts:
    • High-usage customers may negotiate directly with a large-scale generation provider for a closed system without submitting a large-scale service request to a utility.
  • Commission review:
    • Applications for high-usage contracts must include the contract and evidence of compliance.
    • The commission’s review focuses on compliance and cost allocation to the high-usage customer, not broader contract terms.
    • Rules may be adopted to expedite reviews.
  • Service provider obligations and transmission:
    • Utilities maintain the right to serve a high-usage customer but are not obliged to serve if requirements aren’t met or terms can’t be agreed to, or if the customer is under a private generation contract.
    • Transmission service costs and related studies are allocated to the high-usage customer or large-scale provider, subject to federal law and FERC regulations; ancillary services and backup costs may be involved.
    • The commission can create rules for implementing transmission cost allocations consistent with federal requirements.
  • Closed vs connected generation systems:
    • Closed private generation systems are exempt from public utility regulation; separation from utility facilities is required unless authorized.
    • Connected generation systems may be regulated and must meet interconnection and operation requirements; exemptions from regulation as a public utility apply if compliant.
    • Provisions address sale of surplus power to the market, with disclosures in contracts.
  • Customer costs and accounting:
    • High-usage customers pay all just and reasonable incremental costs (generation resources, system upgrades, transmission facilities, service, and other infra).
    • Utilities must maintain separate accounting for all large-scale project investments and costs to ensure proper allocation.
  • Rate and rate-case implications:
    • Revenues and incremental costs related to high-usage service are excluded from rate determinations.
    • Utilities must provide data on dispatch, timing, and cost allocation to ensure costs are excluded from retail ratepayer charges.
  • Zoning and environmental:
    • Adds a new environmental conservation zoning provision restricting siting within a one-mile radius of residential property for high-usage facilities and large-scale generation facilities, with municipal siting authority and a 90-day decision window (extension possible once for up to 30 days). Local boards can hire independent consultants, and approvals/deemed approvals are time-bound.
  • Water use and cooling requirements (new ENV Law subdivision 10):
    • For high-usage contracts with water use above 1 million gallons per week or power usage above 5 MW/year, facilities must implement water-efficient cooling plans (liquid cooling or recycled water).
    • The plan must be submitted to the Department for approval within 90 days; failure to decide within 90 days means plan is deemed approved.
    • Where wastewater is generated, design and operate wastewater treatment systems, with the plan included in the high-usage contract.

Who is affected

  • High-usage customers (both new service entrants and existing customers pursuing high-usage contracts).
  • Electric utilities (and their ratepayers), which must process large-scale service requests, evaluate projects, and negotiate contracts.
  • Large-scale generation providers and private generation firms that participate in private or connected generation arrangements.
  • Municipalities and local zoning authorities, which gain a role in siting approvals and environmental review for high-usage facilities.
  • The Department/Environmental Conservation and potentially the Federal Energy Regulatory Commission framework, due to transmission and water-use requirements.

Procedural and timeline aspects

  • Evaluation timelines: up to six months to evaluate a large-scale service request, with ongoing updates to customers.
  • Post-evaluation: a written service proposal due within 15 days after evaluation completion.
  • Contract approval timeline: the PSC (commission) must issue a decision within 60 days of filing for a high-usage contract.
  • Zoning approval: municipalities have 90 days to approve or deny (deemed approved if no action; extensions allowed).
  • Effective date: the act would take effect 90 days after becoming law.

Notable implications

  • The bill creates a framework to isolate high-usage project costs from general retail ratepayers, directing incremental costs to the high-usage customer.
  • It introduces advanced requirements for private generation and connected generation systems, including regulatory exemptions for certain closed systems.
  • It adds environmental and water-use compliance standards for facilities serving high-usage loads, with specific cooling and wastewater planning obligations.
  • It imposes a structured, time-bound process for evaluating and approving large-scale service requests and high-usage contracts, with explicit rights and limitations for utilities and customers.

Compiled from official sources — confirm details with the bill’s official record.

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