BILL NUMBER: S8540
SPONSOR: GONZALEZ
 
TITLE OF BILL:
An act to amend the public service law, in relation to enacting the
"accountability of costs for data centers act"
 
PURPOSE OR GENERAL IDEA OF 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 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.
 
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.
 
PRIOR 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.

Statutes affected:
S8540: 65 public service law, 65(5) public service law