S T A T E O F N E W Y O R K
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11419
I N A S S E M B L Y
May 15, 2026
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Introduced by COMMITTEE ON RULES -- (at request of M. of A. Gray) --
read once and referred to the Committee on Energy
AN ACT to amend the public service law and the environmental conserva-
tion law, in relation to establishing guidelines for the connection of
utility service for high-usage customers
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The public service law is amended by adding a new section
66-x to read as follows:
§ 66-X. HIGH-USAGE CUSTOMERS. 1. DEFINITIONS. FOR THE PURPOSES OF THIS
SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
(A) "HIGH-USAGE CUSTOMER" SHALL MEAN A CURRENT OR POTENTIAL CUSTOMER
IN THE SERVICE TERRITORY OF AN ELECTRIC UTILITY THAT: (I) REQUESTS ELEC-
TRIC SERVICE UNDER A LARGE-SCALE SERVICE REQUEST; OR (II) ENTERS INTO A
PRIVATE GENERATION CONTRACT WITH A GENERATION PROVIDER.
(B) "LARGE-SCALE SERVICE REQUEST" SHALL MEAN A REQUEST SUBMITTED TO AN
ELECTRIC UTILITY FOR: (I) A NEW ELECTRIC SERVICE THAT IS EXPECTED TO
REACH A CUMULATIVE DEMAND OF ONE HUNDRED MEGAWATTS OR GREATER WITHIN
FIVE YEARS OF THE REQUESTED INITIAL START DATE; OR (II) ADDITIONAL ELEC-
TRIC SERVICE THAT IS EXPECTED TO INCREASE A CUSTOMER'S TOTAL SERVICE
LEVEL BY ONE HUNDRED MEGAWATTS OR GREATER WITHIN FIVE YEARS OF THE
REQUESTED START DATE FOR THE ADDITIONAL SERVICE.
(C) "CLOSED PRIVATE GENERATION SYSTEM" SHALL MEAN ELECTRIC GENERATING
FACILITIES AND ASSOCIATED TRANSMISSION INFRASTRUCTURE THAT: (I) ARE NOT
CONNECTED TO AND OPERATE INDEPENDENTLY FROM THE TRANSMISSION SYSTEM OF
AN ELECTRIC UTILITY, COOPERATIVE UTILITY, MUNICIPAL UTILITY, OR OTHER
UTILITY; (II) SERVE ONE OR MORE CUSTOMERS WITH A MINIMUM CUMULATIVE
ELECTRICAL DEMAND OF ONE HUNDRED MEGAWATTS; AND (III) SERVE ONE OR MORE
HIGH-USAGE CUSTOMERS THROUGH DIRECT CONNECTION.
(D) "CONNECTED GENERATION SYSTEM" SHALL MEAN ELECTRIC GENERATING
FACILITIES AND ASSOCIATED TRANSMISSION INFRASTRUCTURE THAT: (I) ARE
CONNECTED TO AND OPERATE IN CONJUNCTION WITH THE TRANSMISSION SYSTEM OF
AN ELECTRIC UTILITY; (II) SERVE ONE OR MORE HIGH-USAGE CUSTOMERS THROUGH
CONNECTION TO THE TRANSMISSION SYSTEM OF AN ELECTRIC UTILITY; AND (III)
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD15727-01-6
A. 11419 2
EXCEPT AS PROVIDED IN A HIGH-USAGE SERVICE CONTRACT, OPERATE INDEPENDENT
OF THE GENERATION RESOURCES OF ANY ELECTRIC UTILITY, COOPERATIVE UTILI-
TY, MUNICIPAL UTILITY, OR OTHER UTILITY.
(E) "HIGH-USAGE SERVICE CONTRACT" SHALL MEAN A CONTRACT FOR THE
PROVISION OF ELECTRIC SERVICE FOR A HIGH-USAGE SERVICE REQUEST BETWEEN:
(I) AN ELECTRIC UTILITY OR A LARGE-SCALE GENERATION PROVIDER; AND (II) A
HIGH-USAGE CUSTOMER.
(F) "LARGE-SCALE GENERATION PROVIDER" SHALL MEAN AN ENTITY THAT: (I)
IS NOT AN ELECTRIC UTILITY; AND (II) OWNS, OPERATES, OR CONTRACTS FOR
THE OUTPUT OF ONE OR MORE GENERATION RESOURCES INTENDED TO BE USED TO
SUPPLY CERTAIN RETAIL ELECTRIC SERVICES TO A HIGH-USAGE CUSTOMER PURSU-
ANT TO A HIGH-USAGE CONTRACT OR A PRIVATE GENERATION CONTRACT.
(G) "PRIVATE GENERATION CONTRACT" SHALL MEAN A CONTRACT FOR THE
PROVISION OF ELECTRIC SERVICE THROUGH A CLOSED PRIVATE GENERATION SYSTEM
BETWEEN: (I) A LARGE-SCALE GENERATION PROVIDER; AND (II) A HIGH-USAGE
CUSTOMER REQUESTING NEW ELECTRIC SERVICE THAT IS EXPECTED TO REACH A
CUMULATIVE DEMAND OF ONE HUNDRED MEGAWATTS OR GREATER WITHIN FIVE YEARS
OF THE REQUESTED INITIAL START DATE.
(H) "EVALUATION" SHALL MEAN AN ASSESSMENT THAT: (I) EVALUATES THE
IMPACT OF A LARGE-SCALE SERVICE REQUEST ON AN ELECTRIC UTILITY'S
SYSTEMS; (II) IDENTIFIES ANY NECESSARY: (A) SYSTEM MODIFICATIONS OR
UPGRADES TO SUCH ELECTRIC UTILITY'S SYSTEM TO PROVIDE SERVICE AS
REQUESTED IN A LARGE-SCALE SERVICE REQUEST; (B) GENERATION CAPACITY; OR
(C) TRANSMISSION SERVICE REQUESTS; (III) PROVIDES COST ESTIMATES FOR ANY
REQUIRED IMPROVEMENTS; AND (IV) ESTABLISHES AN ESTIMATED TIMELINE FOR
IMPLEMENTING ANY NECESSARY SYSTEM CHANGES.
2. APPLICATION. EXCEPT FOR HIGH-USAGE CUSTOMERS SEEKING SERVICE UNDER
A PRIVATE GENERATION CONTRACT, A HIGH-USAGE CUSTOMER SEEKING SERVICE
UNDER THIS SECTION SHALL SUBMIT A LARGE-SCALE SERVICE REQUEST TO THE
ELECTRIC UTILITY SERVING THE PROPOSED LOCATION.
3. LARGE-SCALE SERVICE REQUEST REQUIREMENTS. (A) A LARGE-SCALE SERVICE
REQUEST SHALL INCLUDE: (I) THE CUSTOMER'S IDENTIFYING INFORMATION; (II)
THE PROPOSED LOCATION FOR ELECTRIC SERVICE; (III) THE REQUESTED AMOUNT
OF ELECTRIC DEMAND IN MEGAWATTS; (IV) A PROPOSED SERVICE COMMENCEMENT
DATE; (V) LOAD PROFILE INFORMATION, INCLUDING: (A) ANTICIPATED ANNUAL
ENERGY USAGE; (B) EXPECTED HOURS OF OPERATION; (C) SEASONAL VARIATIONS;
(D) PEAK DEMAND REQUIREMENTS; AND (E) ANY SPECIAL SERVICE REQUIREMENTS;
(VI) INFORMATION SUFFICIENT TO DEMONSTRATE THE FINANCIAL CAPABILITY TO
COMPLETE THE HIGH-USAGE CUSTOMER'S PROJECT THAT IS THE SUBJECT OF THE
LARGE-SCALE SERVICE REQUEST; AND (VII) CONFIRMATION THAT THE CUSTOMER
WILL NOT USE THE ELECTRIC SERVICE FOR RESALE.
(B) AFTER SUBMITTING A LARGE-SCALE SERVICE REQUEST AND BEFORE ENTERING
INTO A HIGH-USAGE CONTRACT, A CUSTOMER SHALL: (I) ENSURE THAT ALL INFOR-
MATION SUBMITTED UNDER THIS SECTION REMAINS CURRENT; AND (II) PROMPTLY
NOTIFY THE ELECTRIC UTILITY OF ANY MATERIAL CHANGES TO INFORMATION
SUBMITTED UNDER THIS SECTION.
4. SERVICE REQUEST PROCEDURES; NOTICE. (A) AN ELECTRIC UTILITY THAT
RECEIVES A LARGE-SCALE SERVICE REQUEST SHALL: (I) ACKNOWLEDGE RECEIPT OF
SUCH REQUEST; (II) NOTIFY THE CUSTOMER OF ANY MISSING INFORMATION WITHIN
FIFTEEN BUSINESS DAYS AFTER BEGINNING TO PROCESS SUCH REQUEST; AND (III)
COMPLETE AN EVALUATION OF SUCH REQUEST AS SOON AS REASONABLY PRACTICABLE
AFTER BEGINNING THE STUDY, BUT NO MORE THAN SIX MONTHS AFTER BEGINNING
THE EVALUATION.
(B) DURING THE EVALUATION PROCESS, THE ELECTRIC UTILITY SHALL: (I)
PROVIDE THE CUSTOMER WITH REGULAR UPDATES; AND (II) NOTIFY THE CUSTOMER
WHEN THE EVALUATION IS COMPLETED.
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(C) WITHIN FIFTEEN BUSINESS DAYS AFTER COMPLETING AN EVALUATION, THE
ELECTRIC UTILITY SHALL PROVIDE THE CUSTOMER A WRITTEN SERVICE PROPOSAL
THAT INCLUDES: (I) WHETHER SUCH ELECTRIC UTILITY CAN PROVIDE THE
REQUESTED SERVICE WITHIN THE TIME FRAME REQUIRED BY SUCH CUSTOMER; (II)
THE ESTIMATED HIGH-USAGE INCREMENTAL COSTS THAT WILL BE ALLOCATED TO
SUCH CUSTOMER, BASED ON THE INFORMATION PROVIDED BY SUCH CUSTOMER; (III)
ANY REQUIRED: (A) SYSTEM UPGRADES; (B) IMPROVEMENTS; OR (C) TRANSMISSION
SERVICE REQUESTS; (IV) THE ESTIMATED TIMELINE FOR COMMENCING THE
REQUESTED ELECTRIC SERVICE; AND (V) THE PROPOSED TERMS AND CONDITIONS OF
SERVICE, INCLUDING PROVISIONS FOR ADDRESSING LONG-TERM OPERATION AND
MAINTENANCE COSTS FOR HIGH-USAGE FACILITIES.
(D) AN ELECTRIC UTILITY (I) MAY CHARGE REASONABLE FEES FOR COSTS
INCURRED IN (A) EVALUATING A LARGE-SCALE SERVICE REQUEST; AND (B) NECES-
SARY SUBSEQUENT OR RELATED ASSESSMENTS; AND (II) IS NOT REQUIRED TO
BEGIN WORK ON AN EVALUATION UNTIL THE CUSTOMER (A) PAYS APPLICABLE FEES;
AND (B) PROVIDES THE INFORMATION REQUIRED TO THE ELECTRIC UTILITY TO
CONDUCT AN EVALUATION.
5. HIGH-USAGE CONTRACT REQUIREMENTS. (A) ELECTRIC SERVICE FOR A LARGE-
SCALE SERVICE REQUEST SHALL BE PROVIDED ONLY UNDER ONE OR MORE HIGH-US-
AGE CONTRACTS WITH (I) AN ELECTRIC UTILITY; (II) A LARGE-SCALE GENER-
ATION PROVIDER; OR (III) ANY COMBINATION OF SUBPARAGRAPHS (I) AND (II)
OF THIS PARAGRAPH.
(B) A HIGH-USAGE CUSTOMER SHALL: (I) CONTRACT FOR ALL OF SUCH CUSTOM-
ER'S PROJECTED ELECTRICAL REQUIREMENTS UNDER THE LARGE-SCALE SERVICE
REQUEST; AND (II) MAINTAIN CONTRACTS WITH RESOURCES OR LOAD SHEDDING
CAPABILITIES SUFFICIENT TO MEET SUCH CUSTOMER'S ACTUAL ELECTRICAL
REQUIREMENTS AT ALL TIMES.
(C) A HIGH-USAGE CONTRACT WITH AN ELECTRIC UTILITY SHALL: (I) ENSURE
THAT ALL HIGH-USAGE INCREMENTAL COSTS ARE ALLOCATED TO AND PAID BY THE
HIGH-USAGE CUSTOMER; (II) COMPLY WITH ALL SYSTEM REQUIREMENTS; (III)
REQUIRE THE HIGH-USAGE CUSTOMER TO MAINTAIN FINANCIAL SECURITY SUFFI-
CIENT TO COVER SUCH HIGH-USAGE CUSTOMER'S OBLIGATIONS; (IV) SPECIFY: (A)
POINTS OF INTERCONNECTION; (B) POWER DELIVERY POINTS; (C) THE AMOUNT OF
ELECTRICAL CAPACITY CONTRACTED FOR; (D) THE TERM OF SERVICE; AND (E) ANY
ARRANGEMENTS FOR BACKUP POWER SUPPLY; (V) PROVIDE CURTAILMENT PROVISIONS
IF THE HIGH-USAGE CUSTOMER'S DEMAND EXCEEDS THE AMOUNT OF CONTRACTUALLY
SUPPORTED DEMAND; (VI) IDENTIFY THE INCREMENTAL GENERATION RESOURCES
THAT THE ELECTRIC UTILITY WILL USE TO SERVE THE HIGH-USAGE CUSTOMER; AND
(VII) INCLUDE PROVISIONS ADDRESSING THE ALLOCATION AND PAYMENT OF LONG-
TERM OPERATION AND MAINTENANCE COSTS FOR HIGH-USAGE FACILITIES.
(D) A HIGH-USAGE CONTRACT WITH A LARGE-SCALE GENERATION PROVIDER THAT
PROVIDES SERVICE THROUGH A CONNECTED ELECTRICAL SYSTEM SHALL: (I) ENSURE
THAT ALL HIGH-USAGE INCREMENTAL COSTS ARE ALLOCATED TO AND PAID BY THE
HIGH-USAGE CUSTOMER; (II) COMPLY WITH ALL SYSTEM REQUIREMENTS; (III)
SPECIFY: (A) POINTS OF INTERCONNECTION; (B) POWER DELIVERY POINTS; (C)
THE AMOUNT OF ELECTRICAL CAPACITY CONTRACTED FOR; (D) THE TERM OF
SERVICE; AND (E) ANY ARRANGEMENTS FOR BACKUP POWER SUPPLY; AND (IV)
PROVIDE CURTAILMENT PROVISIONS IF THE HIGH-USAGE CUSTOMER'S DEMAND
EXCEEDS THE REAL-TIME DISPATCH OF THE LARGE-SCALE GENERATION PROVIDER'S
RESOURCES UNDER THE HIGH-USAGE CONTRACT, NET OF TRANSMISSION LOSSES.
(E) AN ELECTRIC UTILITY (I) HAS NO DUTY TO SERVE A HIGH-USAGE CUSTOMER
EXCEPT AS EXPLICITLY PROVIDED IN A HIGH-USAGE CONTRACT; AND (II) IS NOT
REQUIRED TO PROVIDE BACKUP POWER TO A HIGH-USAGE CUSTOMER EXCEPT AS
EXPLICITLY PROVIDED IN A HIGH-USAGE CONTRACT.
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(F) AN ELECTRIC UTILITY MAY NOT BE REQUIRED TO COMMENCE DESIGN AND
CONSTRUCTION OF HIGH-USAGE FACILITIES UNTIL AFTER (I) EXECUTING A HIGH-
USAGE CONSTRUCTION CONTRACT; AND (II) OBTAINING COMMISSION APPROVAL.
(G) AN ELECTRIC UTILITY OR LARGE-SCALE GENERATION PROVIDER SHALL (I)
OBTAIN COMMISSION APPROVAL BEFORE PROVIDING ELECTRIC SERVICE UNDER A
HIGH-USAGE CONTRACT; AND (II) NEGOTIATE THE TERMS OF A HIGH-USAGE
CONTRACT WITH A HIGH-USAGE CUSTOMER ON A CASE-BY-CASE BASIS.
(H) WITHIN FIFTEEN BUSINESS DAYS AFTER EXECUTING A HIGH-USAGE
CONTRACT, A PERSON EXECUTING SUCH CONTRACT SHALL SUBMIT AN APPLICATION
FOR APPROVAL TO THE COMMISSION FOR REVIEW.
6. PRIVATE GENERATION CONTRACTS. A CUSTOMER SEEKING TO RECEIVE ELEC-
TRIC SERVICE THROUGH A CLOSED PRIVATE GENERATION SYSTEM (A) MAY NEGOTI-
ATE DIRECTLY WITH A LARGE-SCALE GENERATION PROVIDER; AND (B) IS NOT
REQUIRED TO SUBMIT A LARGE-SCALE SERVICE REQUEST TO AN ELECTRIC UTILITY.
7. COMMISSION REVIEW; APPROVAL OF CONTRACTS. (A) AN ELECTRIC UTILITY
OR A LARGE-SCALE GENERATION PROVIDER SHALL FILE AN APPLICATION WITH THE
COMMISSION FOR APPROVAL OF A HIGH-USAGE CONTRACT THAT INCLUDES (I) A
COPY OF THE HIGH-USAGE CONTRACT FOR WHICH THE APPLICANT SEEKS REVIEW AND
APPROVAL; AND (II) EVIDENCE SUFFICIENT TO DEMONSTRATE COMPLIANCE WITH
SUBPARAGRAPH (II) OF PARAGRAPH (B) OF THIS SUBDIVISION.
(B) THE COMMISSION SHALL APPROVE A HIGH-USAGE CONTRACT SUBMITTED UNDER
PARAGRAPH (A) OF THIS SUBDIVISION IF THE COMMISSION FINDS BY A PREPON-
DERANCE OF THE EVIDENCE THAT (I) THE CONTRACT COMPLIES WITH THE REQUIRE-
MENTS OF THIS SECTION; (II) THE HIGH-USAGE CUSTOMER BEARS ALL JUST AND
REASONABLE INCREMENTAL COSTS ATTRIBUTABLE TO RECEIVING THE REQUESTED
ELECTRIC SERVICE; AND (III) EXISTING RATEPAYERS DO NOT BEAR COSTS JUSTLY
AND REASONABLY ATTRIBUTABLE TO PROVIDING ELECTRIC SERVICE FOR THE HIGH-
USAGE CUSTOMER.
(C) COMMISSION REVIEW OF A HIGH-USAGE CONTRACT (I) IS LIMITED TO THE
REQUIREMENTS DESCRIBED IN PARAGRAPH (B) OF THIS SUBDIVISION; AND (II)
DOES NOT INCLUDE REVIEW OF OTHER CONTRACT TERMS.
(D) THE COMMISSION SHALL MAKE A DETERMINATION ON THE SUBMITTED APPLI-
CATION WITHIN SIXTY DAYS FROM WHEN SUCH APPLICATION WAS FILED.
(E) THE COMMISSION MAY ESTABLISH RULES AND REGULATIONS TO EXPEDITE THE
REVIEW OF APPLICATIONS FOR APPROVAL OF A HIGH-USAGE CONTRACT UNDER THIS
SECTION.
8. SERVICE PROVIDER OBLIGATIONS. (A) SUBJECT TO PARAGRAPH (B) OF THIS
SUBDIVISION, AN ELECTRIC UTILITY HAS THE SOLE RIGHT TO PROVIDE ELECTRIC
SERVICE TO A HIGH-USAGE CUSTOMER IN SUCH ELECTRIC UTILITY'S SERVICE
TERRITORY.
(B) (I) AN ELECTRIC UTILITY IS NOT REQUIRED TO PROVIDE ELECTRIC
SERVICE:
(A) IN RESPONSE TO A LARGE-SCALE SERVICE REQUEST IF (1) THE HIGH-USAGE
CUSTOMER HAS NOT COMPLIED WITH THE REQUIREMENTS OF THIS SECTION; (2) THE
ELECTRIC UTILITY CANNOT PROVIDE THE REQUESTED SERVICE WITHIN THE TIME-
FRAME REQUIRED BY THE LARGE-SCALE SERVICE REQUEST; (3) THE HIGH-USAGE
CUSTOMER AND THE ELECTRIC UTILITY CANNOT AGREE UPON TERMS FOR A HIGH-US-
AGE CONTRACT; OR (4) THE HIGH-USAGE CUSTOMER FAILS OR REFUSES TO COMPLY
WITH THE REQUIREMENTS OF A HIGH-USAGE CONTRACT; OR
(B) TO A HIGH-USAGE CUSTOMER THAT RECEIVES SERVICE PURSUANT TO A
PRIVATE GENERATION CONTRACT.
(II) AN ELECTRIC UTILITY THAT DOES NOT AGREE TO TERMS WITH A HIGH-US-
AGE CUSTOMER FOR A HIGH-USAGE CONTRACT:
(A) HAS NO RIGHT OR DUTY TO SERVE THE HIGH-USAGE CUSTOMER;
(B) IS NOT REQUIRED TO PROVIDE ANCILLARY OR BACKUP SERVICES TO THE
HIGH-USAGE CUSTOMER; AND
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(C) IS NOT REQUIRED TO PROVIDE ANY SERVICES TO A LARGE-SCALE GENER-
ATION PROVIDER.
9. TRANSMISSION REQUIREMENTS. (A) IF THE PROVISION OF SERVICE TO A
HIGH-USAGE CUSTOMER REQUIRES TRANSMISSION SERVICE (I) THE ELECTRIC UTIL-
ITY OR THE LARGE-SCALE GENERATION PROVIDER SHALL SUBMIT A TRANSMISSION
SERVICE REQUEST TO THE TRANSMISSION PROVIDER; (II) TO THE FULLEST EXTENT
ALLOWABLE UNDER APPLICABLE FEDERAL LAW AND REGULATIONS, THE LARGE-SCALE
GENERATION PROVIDER OR HIGH-USAGE CUSTOMER SHALL: (A) PAY FOR (1) ANY
INTERCONNECTION OR TRANSMISSION-RELATED STUDIES; (2) ANY IDENTIFIED
INTERCONNECTION UPGRADES, TRANSMISSION UPGRADES, NETWORK UPGRADES,
DISTRIBUTION SYSTEM UPGRADES, OR SYSTEM UPGRADES; AND (3) THE TRANS-
MISSION SERVICE RATES IN THE TRANSMISSION PROVIDER'S OPEN ACCESS TRANS-
MISSION TARIFF; AND (B) PAY AND PROVIDE FOR (1) ANCILLARY SERVICES; (2)
BALANCING SERVICES; AND (3) BACKUP SERVICES.
(B) NOTHING IN THIS SUBDIVISION SHALL BE CONSTRUED TO (I) CONFLICT
WITH OR SUPERSEDE ANY APPLICABLE FEDERAL LAW, REGULATION OR ORDER
REGARDING TRANSMISSION COST ALLOCATION; OR (II) REQUIRE COST ALLOCATION
METHODS INCONSISTENT WITH FEDERAL ENERGY REGULATORY COMMISSION REQUIRE-
MENTS OR ORDERS.
(C) THE COMMISSION SHALL REVIEW TRANSMISSION COST ALLOCATION CONSIST-
ENT WITH FEDERAL REQUIREMENTS AND MAY ESTABLISH RULES FOR IMPLEMENTATION
OF THIS SUBDIVISION.
10. CLOSED PRIVATE GENERATION SYSTEMS. (A) A HIGH-USAGE CUSTOMER MAY
ENTER INTO A PRIVATE GENERATION CONTRACT FOR ALL NEEDED ELECTRIC
SERVICES FROM A LARGE-SCALE GENERATION PROVIDER THROUGH A CLOSED PRIVATE
GENERATION SYSTEM UNDER TERMS AND CONDITIONS ACCEPTABLE TO SUCH HIGH-US-
AGE CUSTOMER AND SUCH LARGE-SCALE GENERATION PROVIDER.
(B) A CLOSED PRIVATE GENERATION SYSTEM AND A LARGE-SCALE GENERATION
PROVIDER THAT PROVIDES SERVICE ON OR THROUGH A CLOSED PRIVATE GENERATION
SYSTEM IN ACCORDANCE WITH THIS SECTION (I) ARE EXEMPT FROM COMMISSION
OVERSIGHT OR REGULATION AS A PUBLIC UTILITY UNDER THIS CHAPTER; (II)
SHALL ENSURE ALL GENERATION, TRANSMISSION, AND RELATED FACILITIES REMAIN
WHOLLY SEPARATE FROM FACILITIES OWNED OR OPERATED BY ANY ELECTRIC UTILI-
TY, COOPERATIVE UTILITY, MUNICIPAL UTILITY, OR OTHER UTILITY EXCEPT TO
THE EXTENT AUTHORIZED BY THIS SECTION; AND (III) MAY CONNECT TO OR
RECEIVE SERVICES FROM AN ELECTRIC UTILITY ONLY PURSUANT TO A CONTRACT
APPROVED BY THE COMMISSION AND CONSISTENT WITH SUBDIVISION ELEVEN OF
THIS SECTION.
(C) THE COMMISSION MAY ESTABLISH RULES REQUIRING APPROPRIATE NOTICES
AND WARNINGS REGARDING SEPARATION FROM THE UTILITY SYSTEM.
11. CONNECTED GENERATION SYSTEMS. (A) A HIGH-USAGE CUSTOMER MAY OBTAIN
ALL NEEDED ELECTRIC SERVICES FROM A LARGE-SCALE GENERATION PROVIDER
THROUGH A CONNECTED GENERATION SYSTEM CONSISTENT WITH THIS SECTION.
(B) A LARGE-SCALE GENERATION PROVIDER MAY PROVIDE SERVICE ON OR
THROUGH A CONNECTED GENERATION SYSTEM IF SUCH PROVIDER (I) MAINTAINS
SUFFICIENT GENERATION CAPACITY TO SERVE ALL CONTRACTED LOAD; (II)
PROVIDES THE COMMISSION WITH (A) SYSTEM DESIGN AND OPERATIONAL INFORMA-
TION; (B) EMERGENCY RESPONSE PROCEDURES; AND (C) NOTIFICATION OF ANY
CHANGES IN SYSTEM CONFIGURATION OR OPERATION; AND (III) MAINTAINS
COMMERCIAL LIABILITY INSURANCE.
(C) A LARGE-SCALE GENERATION PROVIDER THAT PROVIDES SERVICE ON OR
THROUGH A CONNECTED GENERATION SYSTEM CONSISTENT WITH THE REQUIREMENTS
OF THIS SECTION IS EXEMPT FROM COMMISSION REGULATION AS A PUBLIC UTILITY
UNDER THIS CHAPTER.
(D) A CLOSED PRIVATE GENERATION SYSTEM OR A LARGE-SCALE GENERATION
PROVIDER THAT PROVIDES SERVICE THROUGH A CLOSED PRIVATE GENERATION
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SYSTEM MAY CONNECT TO THE INTERSTATE TRANSMISSION SYSTEM OF A TRANS-
MISSION PROVIDER ONLY IF (I) THE CLOSED PRIVATE GENERATION SYSTEM IS
INTERCONNECTED TO THE INTERSTATE TRANSMISSION SYSTEM PURSUANT TO THE
TRANSMISSION PROVIDER'S FEDERAL ENERGY REGULATORY COMMISSION APPROVED
OPEN ACCESS TRANSMISSION TARIFF; AND (II) THE COMMISSION DETERMINES THAT
THE CLOSED PRIVATE GENERATION SYSTEM OR LARGE-SCALE GENERATION PROVIDER
HAS SATISFIED THE REQUIREMENTS OF THIS SECTION FOR THE PROVISION OF
SERVICE ON OR THROUGH A CONNECTED GENERATION SYSTEM.
(E) A CLOSED PRIVATE GENERATION SYSTEM OR A LARGE-SCALE GENERATION
PROVIDER THAT PROVIDES SERVICE THROUGH A CLOSED PRIVATE GENERATION
SYSTEM MAY RECEIVE SERVICES FROM AN ELECTRIC UTILITY ONLY IF (I) THE
REQUIREMENTS OF THIS SECTION ARE MET; AND (II) THE SYSTEM OR PROVIDER
HAS AN AGREEMENT WITH THE ELECTRIC UTILITY AS APPROVED BY THE COMMIS-
SION.
(F) IN THE EVENT THAT A LARGE-SCALE GENERATION PROVIDER THAT PROVIDES
SERVICE THROUGH A CONNECTED GENERATION SYSTEM PRODUCES MORE POWER THAN
IS NEEDED BY THE HIGH-USAGE CUSTOMER, SUCH HIGH-USAGE CUSTOMER MAY SELL
SUCH POWER, AT FAIR MARKET VALUE, TO THE COMPETITIVE MARKET PROVIDED
THAT:
(I) THE AMOUNT OF POWER NEEDED FOR THE OPERATIONAL CAPACITY OF THE
HIGH-USAGE CUSTOMER AND THE AMOUNT OF POWER THE LARGE-SCALE GENERATION
PROVIDER SHALL PRODUCE EACH DAY IS CLEARLY STATED IN A HIGH-USAGE
CONTRACT; AND
(II) THE MEGAWATTS OF POWER IS NOT EXPLICITLY NEEDED FOR THE OPERA-
TIONAL CAPACITY OF THE HIGH-USAGE CUSTOMER, AS PROVIDED IN THE HIGH-US-
AGE CONTRACT.
(G) AN ELECTRIC UTILITY (I) IS NOT REQUIRED TO PURCHASE OR ACCEPT ANY
POWER FROM A CONNECTED GENERATION SYSTEM; AND (II) SHALL ACCEPT POWER
FROM A CONNECTED GENERATION SYSTEM ONLY AS EXPLICITLY PROVIDED IN AN
AGREEMENT THAT HAS BEEN APPROVED BY THE COMMISSION.
12. CUSTOMER REQUIREMENTS. (A) A HIGH-USAGE CUSTOMER SHALL PAY ALL
JUST AND REASONABLE HIGH-USAGE INCREMENTAL COSTS NECESSARY TO RECEIVE
ELECTRIC SERVICE, INCLUDING THE COSTS OF (I) GENERATION RESOURCES; (II)
DISTRIBUTION SYSTEM UPGRADES; (III) TO THE EXTENT PERMITTED BY FEDERAL
LAW, AND, AS APPLICABLE, APPROVED BY THE FEDERAL ENERGY REGULATORY
COMMISSION (A) TRANSMISSION SYSTEM IMPROVEMENTS, INCLUDING NETWORK
UPGRADES; AND (B) INTERCONNECTION FACILITIES; (IV) TRANSMISSION SERVICE;
AND (V) OTHER NECESSARY INFRASTRUCTURE.
(B) AN ELECTRIC UTILITY SHALL (I) MAINTAIN SEPARATE ACCOUNTING RECORDS
FOR ALL INVESTMENTS, REVENUES, AND EXPENSES ASSOCIATED WITH LARGE-SCALE
SERVICE REQUESTS USING GENERALLY ACCEPTED ACCOUNTING PRINCIPLES; AND
(II) TAKE REASONABLE MEASURES TO ENSURE COSTS ARE PROPERLY ALLOCATED
BETWEEN HIGH-USAGE SERVICE AND OTHER OPERATIONS.
13. RATE CASES. (A) ALL REVENUES AND HIGH-USAGE INCREMENTAL COSTS
ASSOCIATED WITH A LARGE-SCALE SERVICE REQUEST SHALL BE EXCLUDED FROM ANY
RATE DETERMINATIONS BY THE COMMISSION.
(B) IN CONNECTION WITH ANY RATE CASE OR OTHER APPROPRIATE PROCEEDING
BEFORE THE COMMISSION, AN ELECTRIC UTILITY SHALL PROVIDE (I) OPERATIONAL
DATA IDENTIFYING WHEN AND TO WHAT EXTENT THE INCREMENTAL GENERATION
RESOURCES IDENTIFIED IN A HIGH-USAGE CONTRACT PURSUANT TO SUBPARAGRAPH
(VI) OF PARAGRAPH (C) OF SUBDIVISION FIVE OF THIS SECTION WERE
DISPATCHED TO SERVE HIGH-USAGE CUSTOMERS; (II) AN IDENTIFICATION OF THE
TIMING, MAGNITUDE, AND DURATION OF (A) THE ELECTRIC UTILITY'S DISPATCH
OF THE RESOURCES DESCRIBED IN THIS SECTION; (B) ANY PERIODS IN WHICH
HIGH-USAGE CUSTOMERS' LOADS EXCEEDED THE DISPATCH OF RESOURCES DESCRIBED
IN THIS SECTION; AND (C) ANY PERIODS IN WHICH THE DISPATCH OF RESOURCES
A. 11419 7
DESCRIBED IN THIS SECTION EXCEEDED THE HIGH-USAGE CUSTOMERS' LOADS;
(III) THE METHOD BY WHICH COSTS FOR THE PROVISION OF ELECTRIC SERVICE
FROM AN ELECTRIC UTILITY TO A HIGH-USAGE CUSTOMER WILL BE EXCLUDED FROM
RATES PAID BY RETAIL CUSTOMERS; AND (IV) ANY OTHER INFORMATION THE
COMMISSION REQUIRES TO ENSURE THAT THE COSTS ASSOCIATED WITH SERVICE TO
A HIGH-USAGE CUSTOMER ARE EXCLUDED FROM THE RATES PAID FOR BY RETAIL
CUSTOMERS.
(C) AN ELECTRIC UTILITY MAY NOT BE REQUIRED TO PUBLICLY DISCLOSE
SPECIFIC REVENUE INFORMATION FROM INDIVIDUAL HIGH-USAGE CUSTOMERS IN ANY
PROCEEDING DESCRIBED IN THIS SECTION.
14. ZONING REGULATIONS FOR THE CONSTRUCTION OF LARGE-SCALE GENERATION
PROVIDERS AND HIGH-USAGE CUSTOMERS. FOR THE PURPOSES OF SITING AND
CONSTRUCTING HIGH-USAGE CUSTOMER FACILITIES AND LARGE-SCALE GENERATION
PROVIDER FACILITIES, A HIGH-USAGE CUSTOMER MAY NOT SITE NOR BUILD ON
LAND THAT FALLS WITHIN A ONE MILE RADIUS OF A RESIDENTIAL PROPERTY.
§ 2. Subdivision 5 of section 8-0105 of the environmental conservation
law is amended by adding a new paragraph (iv) to read as follows:
(IV) THE SUBMISSION, REVIEW, AND APPROVAL OF A SERVICE REQUEST BY A
HIGH-USAGE CUSTOMER, AS DEFINED IN SECTION SIXTY-SIX-X OF THE PUBLIC
SERVICE LAW, OR THE CONSTRUCTION AND OPERATION OF A LARGE-SCALE GENER-
ATION FACILITY CONSTRUCTED PURSUANT TO A NEGOTIATED CONTRACT BETWEEN A
HIGH-USAGE CUSTOMER AND A LARGE-SCALE GENERATION PROVIDER, AS SUCH TERMS
ARE DEFINED IN SECTION SIXTY-SIX-X OF THE PUBLIC SERVICE LAW, WHERE SUCH
FACILITY IS DEDICATED PRIMARILY TO SERVING SUCH HIGH-USAGE CUSTOMER'S
LOAD REQUIREMENTS. ALL CONSTRUCTION PERMITS FOR SUCH FACILITY SHALL BE
ISSUED SOLELY BY THE GOVERNING BODY OF THE MUNICIPALITY IN WHICH SUCH
FACILITY IS LOCATED, IN ACCORDANCE WITH APPLICABLE LOCAL ZONING AND
BUILDING CODES. NO STATE OR LOCAL AGENCY SHALL REQUIRE COMPLIANCE WITH
THIS ARTICLE AS A CONDITION OF APPROVING A HIGH-USAGE CUSTOMER SERVICE
REQUEST OR ISSUING CONSTRUCTION PERMITS FOR A LARGE-SCALE GENERATION
FACILITY AS DESCRIBED IN THIS PARAGRAPH. THE GOVERNING BODY OF THE MUNI-
CIPALITY MAY, AT ITS DISCRETION, RETAIN INDEPENDENT CONSULTANTS TO
ASSIST IN REVIEWING ANY PROPOSED FACILITY FOR ENVIRONMENTAL IMPACT AND
FEASIBILITY, THE REASONABLE COSTS OF WHICH MAY BE CHARGED TO THE HIGH-
USAGE CUSTOMER OR LARGE-SCALE GENERATION PROVIDER SUBMITTING SUCH
PROPOSAL. THE GOVERNING MUNICIPALITY SHALL APPROVE OR DENY AN APPLICA-
TION SUBMITTED PURSUANT TO THIS PARAGRAPH WITHIN NINETY DAYS OF RECEIPT
OF A COMPLETED APPLICATION. FAILURE TO ACT WITHIN SUCH PERIOD SHALL BE
DEEMED AN APPROVAL. THE MUNICIPALITY MAY REQUEST FROM THE HIGH-USAGE
CUSTOMER ONE EXTENSION OF NO MORE THAN THIRTY DAYS UPON WRITTEN NOTICE,
PROVIDED SUCH NOTICE IS GIVEN BEFORE THE EXPIRATION OF THE INITIAL NINE-
TY-DAY PERIOD.
§ 3. Section 15-1501 of the environmental conservation law is amended
by adding a new subdivision 10 to read as follows:
10. FOR ANY HIGH-USAGE CUSTOMER THAT ENTERS INTO A HIGH-USAGE CONTRACT
PURSUANT TO SECTION SIXTY-SIX-X OF THE PUBLIC SERVICE LAW THAT HAS A
WATER USE IN EXCESS OF ONE MILLION GALLONS OF WATER PER WEEK, OR A UTIL-
ITY CUSTOMER THAT HAS A USAGE OF POWER IN EXCESS OF FIVE MEGAWATTS OF
POWER PER YEAR AND A WATER USE IN EXCESS OF ONE MILLION GALLONS OF WATER
PER WEEK, SUCH CUSTOMER SHALL:
(A) ESTABLISH A PLAN THAT EITHER UTILIZES (1) LIQUID-BASED COOLING
TECHNOLOGY, INCLUDING BUT NOT LIMITED TO DIRECT-TO-CHIP COOLING, IMMER-
SION COOLING AND CLOSED-LOOP COOLING; OR (2) RECYCLED WATER SOURCES.
SUCH PLAN SHALL ENSURE THAT WHEN ANY WATER IS USED FROM A FRESH WATER
SOURCE, THAT SUCH WATER IS RECYCLED TO SUCH SOURCE. SUCH PLAN SHALL
SUBSEQUENTLY BE SUBMITTED TO THE DEPARTMENT, WHICH SHALL THEN HAVE NINE-
A. 11419 8
TY DAYS TO MAKE A DETERMINATION TO APPROVE OR DISPROVE SUCH PLAN. IF THE
DEPARTMENT FAILS TO MAKE A DETERMINATION WITHIN NINETY DAYS, SUCH PLAN
WILL BE DEEMED APPROVED; AND
(B) WHEN APPLICABLE, WHERE WASTEWATER IS GENERATED BY SUCH COOLING
SYSTEMS, DESIGN AND OPERATE WASTEWATER TREATMENT SYSTEMS. THE PROPOSAL
FOR SUCH SYSTEM SHALL BE INCLUDED IN THE HIGH-USAGE CONTRACT PURSUANT TO
SECTION SIXTY-SIX-X OF THE PUBLIC SERVICE LAW.
§ 4. This act shall take effect on the ninetieth day after it shall
have become a law.