news release
ALBANY, NY — New York State Assembly Member Scott Gray (R-Watertown) announced today the introduction of Assembly Bill A.11419, the “High-Energy User Act,” legislation designed to constructively position New York for large-scale industrial and technological investment while establishing clear guardrails that protect existing utility customers, the electric grid and the state’s natural resources. The legislation does not encourage or discourage the facilities; it is simply a framework for accommodating them if local governments desire to host them.
The bill recognizes that large, new electric load customers, including advanced manufacturing facilities, semiconductor plants and data centers, can bring substantial benefits to New York communities when the right framework is in place.
“New York should be open for business, and the North Country has long understood that major employers can transform a community,” said Assembly Member Gray. “The High-Energy User Act is built to attract that investment on terms that work for everyone. These customers can be partners in strengthening our grid, expanding generation, supporting our schools and local governments through the property tax base and putting people to work. This bill makes it clear that everyday ratepayers should not be the ones writing the check for that growth.”
Recognizing the Value High-Energy Users Can Bring to New York
A.11419 establishes a framework that allows the state to evaluate and local governments to welcome high-energy users based on the contributions they bring to the communities and the grid they will operate within, including:
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Ability to Fund Broader Transmission Upgrades: High-energy users have the scale and the capital to contribute to critical transmission infrastructure improvements that benefit the entire region, not just their own facility.
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Capacity to Bring New Generation Online: Large customers can finance and bring forward new dispatchable baseload generation resources that add capacity to the grid for their own operations and for the general public, easing pressure on supply and helping stabilize rates.
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Local Property Tax Contributions: Major facilities expand the local property tax base, supporting school districts, municipalities and county services in the host community.
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Workforce Investment: The framework accounts for the direct and indirect employment a high-energy user brings to the region, including construction, operations and supply chain jobs that strengthen the local economy.
Key Provisions of A.11419: Ratepayer and Environmental Protections
The legislation segments “high-usage customers” as entities whose electrical demand is expected to increase by 100 megawatts or greater within five years, and applies the following requirements.
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Financial Protections for Everyday Ratepayers: Any high-usage contract must ensure that all incremental costs, including grid modifications, transmission upgrades and generation capacity, are fully allocated to and paid by the high-usage customer.
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Mandatory Comprehensive Impact Evaluations: Electric utilities will be required to conduct formal system evaluations for large-scale requests to determine grid impacts, seasonal variations and necessary infrastructure shifts before a contract can proceed.
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No Duty to Serve Without a Clear Contract: Utilities have no statutory duty to serve or provide backup power to a high-usage customer except as strictly detailed in a Public Service Commission-approved, case-by-case contract. High-usage customers must maintain adequate financial security to cover their infrastructure footprint fully.
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Encouraging Independent Generation: The bill outlines statutory parameters for “closed private generation systems” that operate independent of public utility generation resources, alleviating stress on the public grid.
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Environmental and Water Safeguards: A.11419 amends both the Public Service Law and the Environmental Conservation Law to address the high water usage often associated with cooling large-scale power or computing infrastructure, requiring thorough regulatory review and environmental protection guidelines.
“If our communities want investment, our grid needs reinforcement and our environment deserves protection, then those three things do not have to be in conflict,” Gray said. “A.11419 sets a standard that invites major employers to the table and makes them a partner in strengthening the system rather than a burden on the families and small businesses who are already paying their bills every month.”
Assembly Bill A.11419 has been formally introduced and referred to the Assembly Committee on Energy.
Assemblyman Scott Gray represents the 116th District, Jefferson and St. Lawrence Counties. He serves as the Ranking Member on the Assembly Standing Committee on Energy.
