A 9107: Directs the public service commission to provide a class of service for facilities that use large amounts of energy; requires an electric company that is providing electricity service to a retail electricity consumer that is a large energy use facility to enter into a contract with the retail electricity consumer that covers the provision of the electricity service; repeals certain provisions upon the expiration thereof.

  
  STATE OF NEW YORK ________________________________________________________________________ 9107 2025-2026 Regular Sessions  IN ASSEMBLY September 26, 2025 ___________ Introduced by M. of A. P. CARROLL -- read once and referred to the Committee on Energy AN ACT to amend the public service law, in relation to directing the public service commission to provide a class of service for facilities that use large amounts of energy; and providing for the repeal of certain provisions upon expiration thereof The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The public service law is amended by adding a new section 2 66-x to read as follows: 3 § 66-x. Data center cost of service. 1. Definitions. For the purposes 4 of this section: 5 (a) "Costs of serving" includes, as applicable, the costs incurred by 6 an electric company in providing transmission, distribution, energy, 7 capacity or ancillary electricity services, and any related costs or 8 associated risks with serving a class of retail electricity consumers or 9 a retail electricity consumer. 10 (b) "Facility" means all buildings, equipment, structures and other 11 stationary items that are located on a single site or on contiguous or 12 adjacent sites and that are owned or operated by the same person or by 13 any person who controls, is controlled by or is under common control 14 with such person. 15 (c) "Large energy use facility" means a facility that uses or is able 16 to use twenty megawatts or more and is primarily engaged in providing a 17 service described under code 518210 of the 2022 North American Industry 18 Classification System. 19 2. The commission shall provide for a classification of service for 20 retail electricity consumers that are large energy use facilities. The 21 classification of service must be separate and distinct from classifica- 22 tions of service for other commercial or industrial retail electricity EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD13803-01-5 
 A. 9107 2 1 consumers and have its own tariff schedule. Any tariff schedule adopted 2 by the commission for the class must: 3 (a)(i) Allocate the costs of serving the class of retail electricity 4 consumers that are large energy use facilities to the class in a manner 5 that is equal or proportional to the costs of serving the class; or 6 (ii) directly assign the costs of serving a retail electricity consum- 7 er that is a large energy use facility to the retail electricity consum- 8 er; 9 (b) Meet the same conditions the commission requires for a contract 10 under subdivision four of this section; and 11 (c) Mitigate the risk of: 12 (i) other classes of retail electricity consumers paying unwarranted 13 costs; and 14 (ii) shifting the costs, in an unwarranted manner, of serving a retail 15 electricity consumer that is a large energy use facility to other class- 16 es of retail electricity consumers, including costs of an electric 17 company to meet load requirements resulting from the provision of elec- 18 tricity service to a retail electricity consumer that is a large energy 19 use facility. 20 3. In deciding whether to approve a proposed tariff schedule of an 21 electric company for a classification of service described under subdi- 22 vision two of this section, the commission shall consider whether the 23 rates: 24 (a) Result in, or have the potential to result in, increased costs or 25 unwarranted risk to other retail electricity consumers; 26 (b) Provide for equitable contributions to grid efficiency, reliabil- 27 ity and resiliency benefits; 28 (c) Impede the electric company's ability to meet the clean energy 29 targets or reduce the emissions of greenhouse gases consistent with 30 state policy; 31 (d) Allow for procurement of or contracts for generation resources 32 that support the electric company's ability to meet the clean energy 33 targets or reduce the emissions of greenhouse gases consistent with 34 state policy; and 35 (e) Meet any other conditions the commission may require in the public 36 interest. 37 4. (a) The commission shall require an electric company that is 38 providing electricity service to a retail electricity consumer that is a 39 large energy use facility to enter into a contract with the retail elec- 40 tricity consumer that covers the provision of the electricity service, 41 including, as applicable, transmission, distribution, energy, capacity 42 or ancillary electricity services. 43 (b) Any contract for the provision of electricity service entered into 44 between an electric company and a retail electricity consumer that is a 45 large energy use facility: 46 (i) must: 47 (A) be consistent with the criteria listed under subdivision three of 48 this section; 49 (B) specify the duration of the contract and be for a duration for ten 50 years or longer; 51 (C) specify the date or estimated date that the electric company will 52 begin to provide electricity service to the retail electricity consumer; 53 (D) obligate the retail electricity consumer to pay a minimum amount 54 or percentage, as determined by the commission, based on the retail 55 electricity consumer's projected electricity usage for the electricity 
 A. 9107 3 1 services the electric company is contracted to provide for the duration 2 of the contract; and 3 (E) meet any other conditions the commission may require in the public 4 interest; and 5 (ii) may include a charge for excess demand for the electricity 6 services the electric company is contracted to provide that is in addi- 7 tion to the tariff schedule. 8 (c) If an electric company fails to begin to provide electricity 9 service on or by the date or estimated date specified in a contract 10 entered into under this section due to causes within the electric compa- 11 ny's reasonable control, the electric company shall provide the retail 12 electricity consumer notice of the delay as soon as reasonably practica- 13 ble. A contract entered into under this section may include terms and 14 conditions that address the possibility of a delay due to causes within 15 the reasonable control of the parties to the contract. 16 (d) A contract, as described under paragraph one of this subdivision, 17 may not prevent the commission from carrying out the commission's duties 18 under this section or any other provision of this chapter. 19 (e) Nothing in this section is intended to limit or restrict the abil- 20 ity of a retail electricity consumer that is a large energy use facility 21 from using direct access or a green power rate, a voluntary renewable 22 energy tariff or a special contract, as approved by the commission, 23 except the contract must meet the requirements and be consistent with 24 the provisions of this section. 25 5. The provisions of subdivision four of this section apply to retail 26 electricity consumers that are large energy use facilities that: 27 (a) Enter into a contract for electricity service with an electric 28 company on or after the effective date of this section; or 29 (b) Enter into a contract for electricity service with an electric 30 company before the effective date of this section, if the provision of 31 electricity service requires the electric company to make significant 32 investments or incur costs after the effective date of this section that 33 could result in increased costs or risks to other retail electricity 34 consumers of the electric company. 35 § 2. No later than September first of each even-numbered year, the 36 public service commission shall submit a report to the legislature and 37 the governor, reviewing trends in load requirements and other impli- 38 cations from retail electricity consumers that are large energy use 39 facilities, as defined in section 66-x of the public service law, and 40 other retail electricity consumers that use large amounts of electric- 41 ity. In providing the report, the commission must protect proprietary 42 information as provided for under rules or orders of the commission. 43 Such report shall include recommendations for legislation, as deemed 44 necessary by the public service commission. In providing the report, the 45 public service commission must protect proprietary information as 46 provided for under rules or orders of the commission. 47 § 3. This act shall take effect one year after it shall have become a 48 law; provided that section two of this act shall expire and be deemed 49 repealed January 1, 2035. Effective immediately, the addition, amendment 50 and/or repeal of any rule or regulation necessary for the implementation 51 of this act on its effective date are authorized to be made and 52 completed on or before such effective date.