Commission Advances New Proactive Grid Planning Proceeding to Prepare New York’s Electric Grid for Building and Vehicle Electrification

ALBANY - The New York State Public Service Commission (Commission) today approved the long-term proactive planning framework submitted by the state's major electric utilities that will enable the utilities to identify the grid needs driven by electrification for which proactive investment would improve cost-effectiveness, minimize ratepayer impacts, and support policy outcomes. The Commission determined that a proactive planning process is necessary to ensure the grid is ready for the future needs of the state's utility customers, and the infrastructure is developed in the most cost effective and timely manner.

Taken together, the utilities - Central Hudson Gas & Electric Corporation, Consolidated Edison Company of New York, Inc., Niagara Mohawk Power Corporation d/b/a National Grid, New York State Electric & Gas Corporation, Rochester Gas and Electric Corporation, and Orange and Rockland Utilities, Inc. - have more than 7.3 million electric customers.

"The Commission now has the framework needed to ensure that our utilities are ready to support New Yorkers who are increasingly choosing electric vehicles and heating for their homes, business and transportation needs," said Commission Chair Rory M. Christian. "The overall purpose of this effort is to identify timely electric grid upgrades to support electrification across a number of sectors of the economy."

In making its decision, which comes days ahead of Climate Week, which is being held from September 21-28, the Commission will enable utility planning work to commence. In terms of next steps, the utilities will file detailed plans providing an outline of the data needs and assumptions required to develop granular load forecasts. This will be followed by a study to identify the grid needs driven by electrification, economic development and distributed energy resources for which proactive investment would improve cost-effectiveness, minimize ratepayer impacts, and support policy outcomes. The proposed grid upgrades will consider the use of grid-enhancing technologies to minimize project costs and will be submitted for review and consideration by the Commission.

In typical infrastructure planning studies, each individual utility identifies potential needs as they arise in their territory, either from new service requests or load letters - requests for new or increased electrical service - from new or existing customers or through their planning processes based on forecasted load. The new planning framework directed by the Commission is designed to proactively identify grid infrastructure needs to ensure the utilities expand the system in the most cost effective and timely manner. The new planning framework will also ensure that the utilities leverage shared, best-in-class information and techniques to ensure that each utility is coordinating across geographies and service territories.

An important part of the new equation is accounting for the increased load related to the electrification of vehicles and buildings, which will be significant and is expected to be a major driver of the load forecasts used to identify transmission and distribution upgrades in the newly established Coordinated Grid Planning Process (CGPP). The more granular and local load forecasting process developed in the proactive planning framework will complement and integrate with the CGPP, resulting in a more efficient integrated resource plan for the state's transmission and distribution systems. Ultimately merging granular electric vehicle planning with the CGPP will enable the Commission to evaluate the totality of upgrades necessary to meet the clean energy and greenhouse gas emission targets.

The largest and most complex utility upgrades take over seven years to complete, while the speed at which fleet owners can order electric cars and trucks that drive such upgrades can happen in a matter of months. The development of an innovative electrification planning process will not only lower utility bills but also enable the significant levels of electrification anticipated through consumer choice and in pursuit of the Climate Act goals.

Today's decision may be obtained by going to the Commission Documents section of the Commission's website at www.dps.ny.gov and entering Case Number 24-E-0364 in the input box labeled "Search for Case/Matter Number". Many libraries offer free Internet access. Commission documents may also be obtained from the Commission's Files Office, 14th floor, Three Empire State Plaza, Albany, NY 12223 (518-474-2500). If you have difficulty understanding English, please call us at 1-800-342-3377 for free language assistance services regarding this press release.

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