Transmission Projects Authorized to Support CLCPA

Projects Help Lay Foundation for Achieving Emission-Free Grid by 2040

ALBANY — The New York State Public Service Commission (Commission) today approved a request of National Grid (upstate) to pursue development of 26 transmission upgrades and modifications identified in the company’s 2030 regional plan in support of the Climate Leadership and Community Protection Act (CLCPA). The 26 projects are estimated to cost $691 million to develop and are expected to be in service by 2030 or earlier.

“New York is making significant upgrades and additions to the State’s existing transmission and distribution systems to integrate new large-scale renewable energy projects into the State’s energy supply, and we must ensure that these investments are smart and cost-effective,” said Commission Chair Rory M. Christian. “The projects we are approving today provide an important opportunity for National Grid to achieve significant CLCPA benefits for its upstate customers.”

In addition to providing reliability and other traditional infrastructure planning benefits to the company’s customers, the projects will address transmission bottlenecks that limit delivery of upstate renewable energy to the bulk system, provide storm resiliency benefits, support local economies, and increase employment opportunities.

The landmark Accelerated Renewable Energy Growth and Community Benefit Act, companion

legislation to the CLCPA, requires the Commission and the utilities, including the Long Island Power

Authority, to develop plans that provide for the timely development of local transmission and

distribution upgrades needed to meet the CLCPA targets.

The decision today requires National Grid to offset the revenue requirement associated with 19 of those projects, expected to be in service by March 31, 2025, through existing net regulatory liabilities. The Commission further authorized the company to defer up to $886,000 in operating expenses to progress the seven other projects for future recovery as part of the company’s next rate filing.

The 26 upstate transmission projects include substation equipment capacity upgrades, installation of larger transformers, rebuilds of existing transmission lines and installation of a dynamic line rating system to allow higher capacity operation during certain times. The 19 initial projects are relatively small and involve short lead-time work, including capacity upgrades to aged substation and circuit equipment such as the replacement of switches, bus-work and transformers. Seven other projects consist of more involved, longer lead-time work, such as the rebuild of aged 115 kV lines – notably 126 miles of parallel lines in the Mohawk Valley from Little Falls to Schenectady, the conversion of an aged 69 kV line to 115 kV, installation of a new 115 kV switching station, and the rebuild of an aged substation.

In making its recommendations to the Commission, Department of Public Service staff reviewed the company’s 2030 Regional Plan and determined the study assumptions and approach to be comprehensive and reasonable and in accordance with the Commission’s guidance. In addition to the CLCPA benefits, improving reliability and safety was a key component of staff’s recommendations to replace aging infrastructure in certain cases.

National Grid states that the 2030 Regional Plan also lays the foundation for achieving an emission-free grid by 2040 and reliably serving new electrification load to achieve the 85 percent economy-wide carbon emissions reductions by 2050. Several environmental and clean-energy organizations such as the Alliance for Clean Energy New York, Inc. and EDF Renewables New York supported the utility’s proposal.

New York State's Nation-Leading Climate Plan

New York State's nation-leading climate agenda is the most aggressive climate and clean energy initiative in the nation, calling for an orderly and just transition to clean energy that creates jobs and continues fostering a green economy as New York State recovers from the COVID-19 pandemic. Enshrined into law through the Climate Leadership and Community Protection Act, New York is on a path to achieve its mandated goal of a zero-emission electricity sector by 2040, including 70 percent renewable energy generation by 2030, and to reach economy wide carbon neutrality. It builds on New York's unprecedented investments to ramp-up clean energy including over $33 billion in 102 large-scale renewable and transmission projects across the state, $6.8 billion to reduce buildings emissions, $1.8 billion to scale up solar, more than $1 billion for clean transportation initiatives, and over $1.6 billion in NY Green Bank commitments. Combined, these investments are supporting nearly 158,000 jobs in New York's clean energy sector in 2020, a 2,100 percent growth in the distributed solar sector since 2011 and a commitment to develop 9,000 megawatts of offshore wind by 2035. Under the Climate Act, New York will build on this progress and reduce greenhouse gas emissions by 85 percent from 1990 levels by 2050, while ensuring that at least 35 percent with a goal of 40 percent of the benefits of clean energy investments are directed to disadvantaged communities, and advance progress towards the state's 2025 energy efficiency target of reducing on-site energy consumption by 185 trillion BTUs of end-use energy savings.

Today’s decision may be obtained by going to the Commission Documents section of the Commission’s Web site at www.dps.ny.gov and entering Case Number 20-E-0197 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.