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.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A9039A
SPONSOR: Barrett PURPOSE OF THE BILL:
This bill would enact the Accountability of Costs for Data Centers Act
(AC/DC Act) to ensure that large energy use facilities pay their fair
share for their own energy needs and that these costs are not borne by
all ratepayers.
SUMMARY OF SPECIFIC PROVISIONS:
§ 1: Names the act the "Accountability of Costs for Data Centers Act" or
the "AC/DC Act".
§ 2: Subdivision 5 of section 65 of the Public Service Law is amended to
require each electric corporation, gas corporation and municipality to
establish an independent classification of service for large energy use
facilities.
§ 3: States that the Public Service Commission shall not approve any
change of rates or related updates to a tariff 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 that the Public Service Commission shall ensure all
new or modified service classifications and adjustment mechanisms are
implemented no later than June 1, 2030.
§ 4: Effective date.
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION:
Technical and clarifying amendments.
JUSTIFICATION:
According to the New York Independent System Operator's (NYISO's) 2025
Power Trends report, data centers - fueled by the rise of Artificial
Intelligence (AI), machine learning, and cryptocurrency mining activ-
ities - are becoming major electricity consumers. By 2030 demand to the
electric grid could increase by an additional 1,600 megawatts (MW) to
nearly 4,000 MW due primarily to a combination of new large loads and
building electrification. This additional demand will create greater
need to invest in our energy grid, an investment that is borne by all
ratepayers.
This bill holds large energy use facilities - defined as a facility that
uses 20MW or more and primarily provides computing infrastructure not
including manufacturing, data processing services, web hosting service,
and related services, including streaming support services, other than
software publishing and streaming distribution services - accountable
for paying their fair share for their own energy needs. By creating a
new customer class, we can protect families and small businesses from
paying for the energy needs of new large energy users.
LEGISLATIVE HISTORY: New bill
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None.
EFFECTIVE DATE:
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.
STATE OF NEW YORK
________________________________________________________________________
9039--A
2025-2026 Regular Sessions
IN ASSEMBLY
September 5, 2025
___________
Introduced by M. of A. BARRETT, CLARK, BURDICK, CONRAD, KELLES -- read
once and referred to the Committee on Energy -- committee discharged,
bill amended, ordered reprinted as amended and recommitted 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
22 energy use facilities and to update any other filings, documents, or
23 components thereof necessary to effectuate the reclassification of large
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD13019-03-5
A. 9039--A 2
1 energy use facilities. Each such service classification for large energy
2 use facilities shall at a minimum, in a manner that is just and reason-
3 able, establish a rate, charge, or schedule of rates, and additional
4 terms of service, to:
5 (A) assign the costs incurred by the electric corporation, gas corpo-
6 ration, or municipality to serve large energy use facilities, including,
7 but not limited to, the costs of any infrastructure upgrades, improve-
8 ments, or additions and operational costs, necessary to facilitate and
9 maintain service to such facilities, entirely among such classification;
10 (B) assign all costs related to the recovery of any rate of return
11 attributable to large energy use facilities entirely among such classi-
12 fication; and
13 (C) mitigate risks and impacts to other service classifications from
14 large energy use facilities, including increases to surcharges, basic
15 service or other fixed charges not directly related to actual energy
16 usage.
17 (ii) The commission, in coordination with the federally designated
18 bulk system operator, shall establish, implement, and annually update an
19 adjustment mechanism to ensure that all costs from any increases in
20 commodity prices after the effective date of the chapter of the laws of
21 two thousand twenty-five that amended this subdivision, including, but
22 not limited to, transmission service fees, attributable to large energy
23 use facilities are borne by such facilities.
24 (iii) The department may promulgate regulations regarding financial
25 surety requirements, between an electric corporation, gas corporation,
26 or municipality and a large energy use facility, for the provision of
27 service to large energy use facilities which may include one, or any
28 combination, of the following: insurance, guarantee, surety bond, letter
29 of credit, or qualification as a self-insurer. In promulgating require-
30 ments under this section, the commission shall be authorized to specify
31 policy or other contractual terms, conditions, or defenses which are
32 necessary or are unacceptable in establishing such evidence of financial
33 surety.
34 (iv) For the purposes of this paragraph, the term "large energy use
35 facilities" shall mean all facilities, or combination of facilities
36 under common ownership at the same site, that:
37 (A) receive service from an electric corporation, gas corporation, or
38 municipality, have applied or requested to receive such service, or have
39 otherwise caused an electric corporation, gas corporation, or munici-
40 pality to incur an expense in relation to the provision of service; and
41 (B) have a peak demand of twenty megawatts or more that is used for:
42 (I) computing infrastructure, not including manufacturing;
43 (II) data processing services;
44 (III) web hosting services, not including software publishing;
45 (IV) streaming support services, not including streaming distribution;
46 and
47 (V) other related services and functions as defined by the commission.
48 § 3. The public service commission shall:
49 1. not approve any change of rates or related updates to a tariff
50 requested by an electric corporation, gas corporation, or municipality
51 after the effective date of this act unless such proposal includes a
52 service classification for large energy use facilities and an adjustment
53 mechanism in compliance with this act; and
54 2. ensure that all new or modified service classifications and adjust-
55 ment mechanisms required by this act are fully implemented by electric
A. 9039--A 3
1 corporations, gas corporations, and municipalities no later than June 1,
2 2030.
3 § 4. This act shall take effect immediately; provided, however, that
4 any new or revised service classification or adjustment mechanism
5 authorized by this act shall not go into effect on or before June 1,
6 2027.
