New York Assembly Bill A10049

New York 2025-2026 Regular Session

• Introduced: 1/30/26
• Refer: 1/30/26

Caption

Establishes a grid modernization surcharge

Summary

This bill establishes a new “grid modernization surcharge” on covered data centers in New York. It defines covered data centers as large facilities with more than 10 MW of IT load, and defines “high-intensity” data centers by power-use efficiency or annual electricity consumption thresholds. The Public Service Commission (PSC) would be directed to create the surcharge by regulation, collect it as a separate line item on utility bills, and allow rate differentiation based on voltage level or service class. The bill also creates a mechanism for reductions in the surcharge for data centers that can verify that at least 90% of their annual electricity use is met by renewable resources meeting PSC standards for additionality and deliverability. Utilities would be required to file tariff riders, and the PSC would establish verification, auditing, and penalty rules. The bill bars utilities from passing the surcharge on to other customer classes, and requires annual reporting on collections, spending, and system improvements.

Impact

The bill would amend the Public Service Law, Public Authorities Law, and State Finance Law to create a dedicated funding stream for grid upgrades tied to large data center electricity use. It establishes the Grid Modernization Fund in joint custody of the state comptroller and PSC, and directs surcharge revenues to be used only for system reliability, capacity expansion, and integration of clean energy resources. The bill also applies a parallel surcharge to authority-served customers and requires coordination between the authority and PSC. If enacted, it would affect utilities, data center operators, and state energy regulators by imposing new billing, compliance, reporting, and fund administration requirements.

Sentiment

Based on the bill text and available context, the measure appears to be framed as a targeted infrastructure and clean-energy financing proposal rather than a broad utility rate increase. There is no recorded committee transcript or vote history in the provided materials, so no formal support or opposition can be measured from debate or roll call. The bill’s structure suggests an intent to place costs on large electricity users while protecting other customers from cost shifting, which may appeal to policymakers concerned about grid strain and data center growth.

Contention

The main likely point of contention is the surcharge itself, especially for large data center operators that would bear the cost directly. Potential disputes may also arise over how the PSC defines covered facilities, sets the rate, verifies renewable compliance, and determines whether a surcharge reduction is warranted. Another possible issue is whether the bill could affect data center siting, expansion, or competitiveness in New York, although the bill attempts to mitigate broader ratepayer impacts by prohibiting pass-through to other customer classes.