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The Federal Energy Regulatory Commission (FERC) granted abeyance on August 13 of its large load show cause order to both the New York Independent System Operator and its transmission owners. Responses are now due on November 16 and answers to responses are due on December 16.

New York Governor Kathy Hochul signed an executive order last month barring for one year the construction of data centers using 50MW or more.

The state legislature has passed a more punitive one-year moratorium bill. Under the state’s complex rules for bill adoption, it has yet to be presented to Hochul.

FERC has resource adequacy concerns in New York due to the rapid addition and proliferation of large loads.

New York had 51 proposals for large loads totaling 13.5 GW as of June. This month the ISO has 89 generation projects, representing over 11 GW, that have completed the interconnection study process but have yet to enter commercial operation.

The ISO told FERC that recent studies found a risk of generation shortfalls as old units retire, new generation is slow to come on line at scale and demand grows.

The ISO’s 2025-2044 comprehensive reliability plan said that the “grid is at an inflection point” due to the aging of the existing generation fleet, the rapid growth of large loads, and the increasing difficulty of developing new dispatchable resources.

In its response to FERC, the ISO has proposed to allow large loads that have adverse impacts on resource adequacy to partner with generation and to partner with new installed capacity supply in the same capacity region.

A 15-year term would be required for resources that partner or co-locate with large loads that want firm withdrawal service.

The ISO said it is investigating if it is feasible for large loads to be able to contract with new demand side resources or distributed energy resources in addition to generators to mitigate resource adequacy impacts.

Resource adequacy is not FERC’s only concern. As it has with other central grid operators, the commission suggested many tariff changes for large loads and called for multiple new types of transmission and interconnection service options in New York.

FERC suggested that the ISO’s load study process lacks the sophistication to accurately assess the reliability impacts of large loads, and that the application process for transmission service may need enhancement.

The commission advised that large loads provide much more data real-time data, and that they pay for phasor measurement units or similar equipment that enables monitoring of the impact of fast-ramping load.

Co-location is integral in the show cause order, and FERC said it can firm up non-firm large loads.

The order preliminarily found that the ISO’s netting of co-located generation with co-located load may not be just and reasonable.

The ISO intends to develop a co-located participation model that treats load and generation separately, and concluded it should sunset the existing behind-the-meter net generation resource program

The ISO is also implementing changes in ancillary service markets to better respond to actual grid conditions and in capacity markets to incentivize investment for resource adequacy.

Transmission owners in the state have also responded to FERC, explaining many aspects of a proposed filing under the Federal Power Act.

Cost recovery will be obtained from the eligible customer taking transmission service or from the large load customer.

New York transmission owners will provide for periodic filings with FERC describing whether they have included costs of network upgrades to one or more customers.

The transmission owners will also file any changes in rates deemed necessary to accommodate firm withdrawal service and non-firm withdrawal service.

The ISO is discussing with stakeholders a proposal to establish an accelerated interconnection study path to address any identified reliability need.

The impact of the lack of interconnect proposals was seen in a recent FERC decision that issued a $45,000 penalty to a cryptocurrency miner in upstate New York.

Bitcoin miner Digi Power purchased a 55 MW cogeneration facility and interconnected to the 115kV transmission system of National Grid without submitting an interconnection proposal to the ISO. This oversight is a violation of the ISO tariff.

Soon after interconnecting in early 2022, the facility experienced increased demand, which FERC said was not preceded by proper notice or analysis, as would have occurred during the required interconnection study process.

Digi Power’s load included on-site fluctuations and a peak load of approximately 30 MW. National Grid sent a letter to Digi Power warning the company to reduce its demand or face the possibility of National Grid tripping its load.

After National Grid sent a second warning letter, Digi Power dropped its load entirely, leading the ISO’s market monitor to refer the matter to FERC’s enforcement decision in 2024.

Data center activity in the state continues to attract attention.

Various estimates of the number of proposed data centers in the state range from 25 to 38, comprising 9,000 GW to 12,000 GW of demand. Tracking service Cleanview said 12 data centers currently operate in New York.

In her executive order, Hochul paused state environmental permits for up to one year to build a “nation-leading regulatory framework” that protects ratepayers, the environment, the grid and communities.

Hochul also directed the state department of public service to consider creating a grid acceleration fund to require data centers to invest in the grid.

A law passed by the state legislature in June places a one-year moratorium on the issuance of data center permits, and requires that 90% of data center power is provided by renewables by 2040.

It is not clear if Hochul will sign the bill, veto it or modify the bill through a chapter amendment, which is a separate bill that the legislature agrees to pass in exchange for the governor’s signature.

“This bill takes a responsible approach to hyperscale data center development, putting New Yorkers in the driver’s seat and studying the environmental and economic impacts of data centers,” state senator Kristen Gonzalez said.

The renewable power requirement would stifle both data centers and the development of nuclear power in the state, according to Keith Schue, co-executive director of the trade group Nuclear New York.

Hochul’s executive order omits a power sourcing requirement for data centers, he said.

A one-year pause gives New York regulators time to build standards, but it also gives neighboring ISOs and states a window to capture projects that would have located in New York, said Malaquias Encarnacion, managing director of Carina Energy, which develops battery storage for data centers.