New York A 10049: Establishes a grid modernization surcharge

Bill Text

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A10049 Summary:

BILL NOA10049 

&nbsp

SAME ASSAME AS S08546

&nbsp

SPONSORKay

&nbsp

COSPNSRShimsky, Novakhov, Kelles, Simon, Schiavoni, Gallagher

&nbsp

MLTSPNSR

&nbsp

Add §66-x, Pub Serv L; add §1005-e, Pub Auth L; add §85, St Fin L

&nbsp

Requires the public service commission establish a grid modernization surcharge imposed on utilities for the energy use of data centers and high-intensity data centers which meet a specified threshold of electricity or information-technology load; establishes the grid modernization fund to finance investments in system reliability, capacity expansion, and integration of clean energy resources.

Go to top A10049 Actions:

BILL NOA10049 

&nbsp

01/30/2026referred to energy

Go to topA10049 Committee&nbspVotes:

Go to topA10049 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topA10049 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 10049

 IN ASSEMBLY

 January 30, 2026
 ___________

 Introduced by M. of A. KAY -- read once and referred to the Committee on
 Energy

 AN ACT to amend the public service law and the public authorities law,
 in relation to establishing a grid modernization surcharge; and to
 amend the state finance law, in relation to establishing the grid
 modernization fund

 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. Grid modernization surcharge. 1. For the purposes of this
 4 section, the following terms shall have the following meanings:
 5 (a) "Data center" means any facility with an information-technology
 6 (IT) load exceeding ten megawatts (MW) of electrical demand, used prima-
 7 rily for the storage, management, processing, or transmission of digital
 8 information; and
 9 (b) "High-intensity data center" means a data center with an annual
 10 power-usage effectiveness (PUE) greater than 1.3 or an annual electric-
 11 ity consumption exceeding 50 gigawatt-hours.
 12 2. (a) The commission shall by regulation establish a grid moderniza-
 13 tion surcharge to be collected by each electric corporation from every
 14 covered data center account as a separate line item on the customer
 15 bill. The commission shall set the surcharge as a rate per kilowatt-hour
 16 or per megawatt-hour billed to such accounts and may differentiate by
 17 voltage level or service class.
 18 (b) A covered data center that demonstrates, through independent
 19 verification acceptable to the commission, that at least ninety percent
 20 of its annual electricity consumption is met by renewable resources
 21 under contracts that meet commission-established additionality and
 22 deliverability criteria may receive a partial or full reduction of the
 23 surcharge.
 24 (c) The commission shall require each electric corporation to file
 25 tariff riders implementing this section and shall establish verifica-
 26 tion, auditing, and penalty provisions for non-compliance.

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD13962-03-5

 A. 10049 2

 1 3. No utility shall impose or pass the surcharge established pursuant
 2 to subdivision two of this section to any customer. Amounts collected
 3 pursuant to this section shall be billed only to covered data center
 4 accounts and shall not be recovered from any other customer classes.
 5 4. (a) Every utility shall prepare an annual report on collections,
 6 expenditures, and measurable system improvements, outage frequency,
 7 congestion frequency, or renewable capacity interconnection rates and
 8 submit such report to the commission.
 9 (b) The commission shall submit an annual public report to the gover-
 10 nor, the temporary president of the senate, and the speaker of the
 11 assembly summarizing total collections, disbursements from the grid
 12 modernization fund, project status, and quantified outcomes including
 13 reliability indices, congestion relief, added hosting capacity, and
 14 interconnection processing times.
 15 5. Any funds collected pursuant to this section shall be deposited
 16 into the grid modernization fund established pursuant to s