Senate Bill S8540

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8540
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                             October 22, 2025
                                ___________
 
 Introduced  by Sen. GONZALEZ -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the public service law,  in  relation  to  enacting  the
   "accountability of costs for data centers act"
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. This act shall be known and may be cited as  the  "account-
 ability of costs for data centers act" or the "AC/DC act".
   § 2. Subdivision 5 of section 65 of the public service law, as amended
 by chapter 134 of the laws of 1921, is amended to read as follows:
   5. (A) Nothing in this chapter shall be taken to prohibit a gas corpo-
 ration  or  [electrical]  ELECTRIC corporation from establishing classi-
 fications of service based upon the quantity used, the time  when  used,
 the  purpose  for  which  used,  the  duration  of use or upon any other
 reasonable consideration, and providing schedules of just and reasonable
 graduated rates applicable thereto. No  such  classification,  schedule,
 rate  or  charge  shall  be  lawful  unless  it  shall be filed with and
 approved by the commission,  and  every  such  classification,  rate  or
 charge  shall  be  subject to change, alteration and modification by the
 commission.
   (B) (I) THE COMMISSION SHALL REQUIRE EACH  ELECTRIC  CORPORATION,  GAS
 CORPORATION, AND MUNICIPALITY TO ESTABLISH, AND FILE WITH THE COMMISSION
 FOR  APPROVAL  OR MODIFICATION, AN INDEPENDENT CLASSIFICATION OF SERVICE
 FOR LARGE ENERGY USE FACILITIES THAT IS SEPARATE AND DISTINCT FROM OTHER
 CLASSIFICATIONS OF SERVICE. THE COMMISSION SHALL ALSO REQUIRE EACH ELEC-
 TRIC CORPORATION, GAS CORPORATION, AND MUNICIPALITY TO FILE UPDATES,  IF
 APPLICABLE,  TO  EXISTING  CLASSIFICATIONS  OF  SERVICE TO EXCLUDE LARGE
 ENERGY USE FACILITIES AND TO UPDATE ANY  OTHER  FILINGS,  DOCUMENTS,  OR
 COMPONENTS THEREOF NECESSARY TO EFFECTUATE THE RECLASSIFICATION OF LARGE
 ENERGY USE FACILITIES. EACH SUCH SERVICE CLASSIFICATION FOR LARGE ENERGY
 USE  FACILITIES SHALL AT A MINIMUM, IN A MANNER THAT IS JUST AND REASON-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD13019-04-5
              

 S. 8540                             2
 
 ABLE, ESTABLISH A RATE, CHARGE, OR SCHEDULE  OF  RATES,  AND  ADDITIONAL
 TERMS OF SERVICE, TO:
   (A)  ASSIGN THE COSTS INCURRED BY THE ELECTRIC CORPORATION, GAS CORPO-
 RATION, OR MUNICIPALITY TO SERVE LARGE ENERGY USE FACILITIES, INCLUDING,
 BUT NOT LIMITED TO, THE COSTS OF ANY INFRASTRUCTURE  UPGRADES,  IMPROVE-
 MENTS,  OR  ADDITIONS AND OPERATIONAL COSTS, NECESSARY TO FACILITATE AND
 MAINTAIN SERVICE TO SUCH FACILITIES, ENTIRELY AMONG SUCH CLASSIFICATION;
   (B) ASSIGN ALL COSTS RELATED TO THE RECOVERY OF  ANY  RATE  OF  RETURN
 ATTRIBUTABLE  TO LARGE ENERGY USE FACILITIES ENTIRELY AMONG SUCH CLASSI-
 FICATION; AND
   (C) MITIGATE RISKS AND IMPACTS TO OTHER SERVICE  CLASSIFICATIONS  FROM
 LARGE  ENERGY  USE  FACILITIES, INCLUDING INCREASES TO SURCHARGES, BASIC
 SERVICE OR OTHER FIXED CHARGES NOT DIRECTLY  RELATED  TO  ACTUAL  ENERGY
 USAGE.
   (II)  THE  COMMISSION,  IN  COORDINATION WITH THE FEDERALLY DESIGNATED
 BULK SYSTEM OPERATOR, SHALL ESTABLISH, IMPLEMENT, AND ANNUALLY UPDATE AN
 ADJUSTMENT MECHANISM TO ENSURE THAT ALL  COSTS  FROM  ANY  INCREASES  IN
 COMMODITY  PRICES AFTER THE EFFECTIVE DATE OF THE CHAPTER OF THE LAWS OF
 TWO THOUSAND TWENTY-FIVE THAT AMENDED THIS SUBDIVISION,  INCLUDING,  BUT
 NOT  LIMITED TO, TRANSMISSION SERVICE FEES, ATTRIBUTABLE TO LARGE ENERGY
 USE FACILITIES ARE BORNE BY SUCH FACILITIES.
   (III) THE DEPARTMENT MAY PROMULGATE  REGULATIONS  REGARDING  FINANCIAL
 SURETY  REQUIREMENTS,  BETWEEN AN ELECTRIC CORPORATION, GAS CORPORATION,
 OR MUNICIPALITY AND A LARGE ENERGY USE FACILITY, FOR  THE  PROVISION  OF
 SERVICE  TO  LARGE  ENERGY  USE FACILITIES WHICH MAY INCLUDE ONE, OR ANY
 COMBINATION, OF THE FOLLOWING: INSURANCE, GUARANTEE, SURETY BOND, LETTER
 OF CREDIT, OR QUALIFICATION AS A SELF-INSURER. IN PROMULGATING  REQUIRE-
 MENTS  UNDER THIS SECTION, THE COMMISSION SHALL BE AUTHORIZED TO SPECIFY
 POLICY OR OTHER CONTRACTUAL TERMS, CONDITIONS,  OR  DEFENSES  WHICH  ARE
 NECESSARY OR ARE UNACCEPTABLE IN ESTABLISHING SUCH EVIDENCE OF FINANCIAL
 SURETY.
   (IV)  FOR  THE  PURPOSES OF THIS PARAGRAPH, THE TERM "LARGE ENERGY USE
 FACILITIES" SHALL MEAN ALL  FACILITIES,  OR  COMBINATION  OF  FACILITIES
 UNDER COMMON OWNERSHIP AT THE SAME SITE, THAT:
   (A)  RECEIVE SERVICE FROM AN ELECTRIC CORPORATION, GAS CORPORATION, OR
 MUNICIPALITY, HAVE APPLIED OR REQUESTED TO RECEIVE SUCH SERVICE, OR HAVE
 OTHERWISE CAUSED AN ELECTRIC CORPORATION, GAS  CORPORATION,  OR  MUNICI-
 PALITY TO INCUR AN EXPENSE IN RELATION TO THE PROVISION OF SERVICE; AND
   (B) HAVE A PEAK DEMAND OF TWENTY MEGAWATTS OR MORE THAT IS USED FOR:
   (I) COMPUTING INFRASTRUCTURE, NOT INCLUDING MANUFACTURING;
   (II) DATA PROCESSING SERVICES;
   (III) WEB HOSTING SERVICES, NOT INCLUDING SOFTWARE PUBLISHING;
   (IV) STREAMING SUPPORT SERVICES, NOT INCLUDING STREAMING DISTRIBUTION;
 AND
   (V) OTHER RELATED SERVICES AND FUNCTIONS AS DEFINED BY THE COMMISSION.
   § 3.  The public service commission shall:
   1.  not  approve  any  change  of rates or related updates to a tariff
 requested by an electric corporation, gas corporation,  or  municipality
 after  the  effective  date  of this act unless such proposal includes a
 service classification for large energy use facilities and an adjustment
 mechanism in compliance with this act; and
   2. ensure that all new or modified service classifications and adjust-
 ment mechanisms required by this act are fully implemented  by  electric
 corporations, gas corporations, and municipalities no later than June 1,
 2030.
 S. 8540                             3
 
   §  4.  This act shall take effect immediately; provided, however, that
 any new  or  revised  service  classification  or  adjustment  mechanism
 authorized  by  this  act  shall not go into effect on or before June 1,
 2027.