It’s a significant shift in direction.
Governor Hochul is proposing that AI and other energy-hungry data centers pay more for electricity to mitigate rising costs for regular consumers. She mentioned this is essential to avoid shocking price hikes for families and small businesses.
“Massive data centers are driving up electricity demand faster than our grid can cope, putting a strain on families and small enterprises that simply can’t absorb these increased costs,” Hochul remarked in her statement to the Post.
“New York must continue to attract new technology, but we have to grow wisely, focusing on affordability, and ensure that the businesses benefiting from our growth contribute fairly,” she added.
During her recent State of the State address, Hochul mentioned her intention to request the state’s Public Service Commission to start a “New York State Energy Development” program.
This initiative would facilitate connections for large energy users to the grid but comes with strict conditions to safeguard other consumers.
The governor emphasized that these industries would either face higher energy prices or be required to provide their own energy.
Details about the pricing structure itself will be established by the PSC.
Hochul’s stance comes at a time when she is facing scrutiny over New York’s rising utility bills and overall high cost of living, even as she has rolled back certain obligations under the green energy law established in 2019.
This landmark legislation aimed to cut greenhouse gas emissions by 85% by 2050, largely by moving away from vehicles and sources that burn fossil fuels while requiring carbon-free energy by 2040.
However, her administration’s actions, including suspending a “cap-and-invest” program intended to mitigate energy costs, have drawn criticism from environmental advocates.
Recently, Hochul approved a controversial natural gas pipeline backed by Trump and postponed a ban on gas stoves in new construction.
In addressing the state’s recent energy issues, she argued that New York must adjust its strategies for achieving carbon neutrality, especially considering looming energy shortages.
“We cannot afford to risk blackouts or gas shortages,” she stated.
The PSC is currently urging Con Edison to devise a strategy to ensure power reliability in the city amid urgent warnings about potential outages due to escalating electricity demands and decreasing fossil fuel availability.
