S08540 Summary:
| BILL NO | S08540A |
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| SAME AS | SAME AS A09039-B |
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| SPONSOR | GONZALEZ |
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| COSPNSR | BROUK, FAHY, GOUNARDES, KRUEGER, SCARCELLA-SPANTON, STAVISKY |
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| MLTSPNSR | |
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| Amd §65, Pub Serv L | |
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| Establishes the "accountability of costs for data centers act"; requires each electric corporation, gas corporation and municipality to establish an independent classification of service for large energy use facilities that is separate and distinct from other classifications of service; authorizes the department of public service to develop financial surety requirements. | |
S08540 Text:
Go to topSTATE OF NEW YORK ________________________________________________________________________ 8540--A 2025-2026 Regular Sessions IN SENATE October 22, 2025 ___________ Introduced by Sens. GONZALEZ, BROUK, FAHY, GOUNARDES, KRUEGER, STAVISKY -- read twice and ordered printed, and when printed to be committed to the Committee on Rules -- recommitted to the Committee on Energy and Telecommunications in accordance with Senate Rule 6, sec. 8 -- commit- tee discharged, bill amended, ordered reprinted as amended and recom- mitted to said committee 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. (a) Nothing in this chapter shall be taken to prohibit a gas corpo- 6 ration or [electrical] electric corporation from establishing classi- 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 17 for approval or modification, an independent classification of service 18 for large energy use facilities that is separate and distinct from other 19 classifications of service. The commission shall also require each elec- 20 tric corporation, gas corporation, and municipality to file updates, if 21 applicable, to existing classifications of service to exclude large EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD13019-06-6S. 8540--A 2 1 energy use facilities and to update any other filings, documents, or 2 components thereof necessary to effectuate the reclassification of large 3 energy use facilities. Each such service classification for large energy 4 use facilities shall at a minimum, in a manner that is just and reason- 5 able, establish a rate, charge, or schedule of rates, and additional 6 terms of service, to: 7 (A) assign the costs incurred by the electric corporation, gas corpo- 8 ration, or municipality to serve large energy use facilities, including, 9 but not limited to, the costs of any infrastructure upgrades, improve- 10 ments, or additions and operational costs, necessary to facilitate and 11 maintain service to such facilities, entirely among such classification; 12 (B) assign all costs related to the recovery of any rate of return 13 attributable to large energy use facilities entirely among such classi- 14 fication; and 15 (C) mitigate risks and impacts to other service classifications from 16 large energy use facilities, including increases to surcharges, basic 17 service or other fixed charges not directly related to actual energy 18 usage. 19 (ii) The commission, in coordination with the federally designated 20 bulk system operator, shall establish, implement, and annually update an 21 adjustment mechanism to ensure that all costs from any increases in 22 commodity prices after the effective date of the chapter of the laws of 23 two thousand twenty-six that amended this subdivision, including, but 24 not limited to, transmission service fees, attributable to large energy 25 use facilities are borne by such facilities. 26 (iii) The department may promulgate regulations regarding financial 27 surety requirements, between an electric corporation, gas corporation, 28 or municipality and a large energy use facility, for the provision of 29 service to large energy use facilities which may include one, or any 30 combination, of the following: insurance, guarantee, surety bond, letter 31 of credit, or qualification as a self-insurer. In promulgating require- 32 ments under this section, the commission shall be authorized to specify 33 policy or other contractual terms, conditions, or defenses which are 34 necessary or are unacceptable in establishing such evidence of financial 35 surety. 36 (iv) For the purposes of this paragraph, the term "large energy use 37 facilities" shall mean all facilities, or combination of facilities 38 under common ownership at the same site, that: 39 (A) receive service from an electric corporation, gas corporation, or 40 municipality, have applied or requested to receive such service, or have 41 otherwise caused an electric corporation, gas corporation, or munici- 42 pality to incur an expense in relation to the provision of service; and 43 (B) have a peak demand of twenty megawatts or more that is used for: 44 (I) computing infrastructure, not including manufacturing; 45 (II) data processing services; 46 (III) web hosting services, not including software publishing; 47 (IV) streaming support services, not including streaming distribution; 48 and 49 (V) other related services and functions as defined by the commission. 50 § 3. The public service commission shall: 51 1. not approve any change of rates or related updates to a tariff 52 requested by an electric corporation, gas corporation, or municipality 53 after the effective date of this act unless such proposal includes a 54 service classification for large energy use facilities and an adjustment 55 mechanism in compliance with this act; andS. 8540--A 3 1 2. ensure that all new or modified service classifications and adjust- 2 ment mechanisms required by this act are fully implemented by electric 3 corporations, gas corporations, and municipalities no later than June 1, 4 2030. 5 § 4. This act shall take effect immediately; provided, however, that 6 any new or revised service classification or adjustment mechanism 7 authorized by this act shall not go into effect on or before June 1, 8 2027.