New York A 9039: Establishes the "accountability of costs for data centers act"

Bill Text

STATE OF NEW YORK
        ________________________________________________________________________
                                         9039--B
                                                                Cal. No. 223
                               2025-2026 Regular Sessions
                   IN ASSEMBLY
                                    September 5, 2025
                                       ___________
        Introduced  by M. of A. BARRETT, CLARK, BURDICK, CONRAD, KELLES, MAGNAR-
          ELLI, KAY, LUPARDO,  TAPIA,  McDONALD,  WEPRIN,  SHRESTHA,  LEVENBERG,
          REYES,  SANTABARBARA,  DILAN,  ROSENTHAL,  DAVILA,  FORREST,  WOERNER,
          ROZIC, SHIMSKY, STECK, McMAHON, BUTTENSCHON, LAVINE, GRIFFIN,  COLTON,
          COOK,  SCHIAVONI, LUNSFORD, P. CARROLL, KASSAY, SIMONE, SIMON, SLATER,
          HOOKS, GALLAGHER -- read once and referred to the Committee on  Energy
          --  committee  discharged,  bill amended, ordered reprinted as amended
          and recommitted to said committee -- recommitted to the  Committee  on
          Energy  in  accordance  with  Assembly Rule 3, sec. 2 -- reported from
          committee, advanced to a third reading, amended and ordered reprinted,
          retaining its place on the order of third reading
        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:
     1    Section 1. This act shall be known and may be cited as  the  "account-
     2  ability of costs for data centers act" or the "AC/DC act".
     3    § 2. Subdivision 5 of section 65 of the public service law, as amended
     4  by chapter 134 of the laws of 1921, is amended to read as follows:
     5    5.  Nothing in this chapter shall be taken to prohibit a gas corpo-(a)
     6  ration  or  []   corporation from establishing classi-electricalelectric
     7  fications of service based upon the quantity used, the time  when  used,
     8  the  purpose  for  which  used,  the  duration  of use or upon any other
     9  reasonable consideration, and providing schedules of just and reasonable
    10  graduated rates applicable thereto. No  such  classification,  schedule,
    11  rate  or  charge  shall  be  lawful  unless  it  shall be filed with and
    12  approved by the commission,  and  every  such  classification,  rate  or
    13  charge  shall  be  subject to change, alteration and modification by the
    14  commission.
    15    (b) (i) The commission shall require each  electric  corporation,  gas
    16  corporation, and municipality to establish, and file with the commission
         EXPLANATION--Matter in  (underscored) is new; matter in bracketsitalics
                              [] is old law to be omitted. 
                                                                   LBD13019-05-6

        A. 9039--B                          2
     1  for  approval  or modification, an independent classification of service
     2  for large energy use facilities that is separate and distinct from other
     3  classifications of service. The commission shall also require each elec-
     4  tric  corporation, gas corporation, and municipality to file updates, if
     5  applicable, to existing classifications  of  service  to  exclude  large
     6  energy  use  facilities  and  to update any other filings, documents, or
     7  components thereof necessary to effectuate the reclassification of large
     8  energy use facilities. Each such service classification for large energy
     9  use facilities shall at a minimum, in a manner that is just and  reason-
    10  able,  establish  a  rate,  charge, or schedule of rates, and additional
    11  terms of service, to:
    12    (A) assign the costs incurred by the electric corporation, gas  corpo-
    13  ration, or municipality to serve large energy use facilities, including,
    14  but  not  limited to, the costs of any infrastructure upgrades, improve-
    15  ments, or additions and operational costs, necessary to  facilitate  and
    16  maintain service to such facilities, entirely among such classification;
    17    (B)  assign  all  costs  related to the recovery of any rate of return
    18  attributable to large energy use facilities entirely among such  classi-
    19  fication; and
    20    (C)  mitigate  risks and impacts to other service classifications from
    21  large energy use facilities, including increases  to  surcharges,  basic
    22  service  or  other  fixed  charges not directly related to actual energy
    23  usage.
    24    (ii) The commission, in coordination  with  the  federally  designated
    25  bulk system operator, shall establish, implement, and annually update an
    26  adjustment  mechanism  to  ensure  that  all costs from any increases in
    27  commodity prices after the effective