The AREGCB Act directs the Commission to take specific actions to ensure that New York’s electric grid will support the State’s Climate Leadership and Climate Protection Act (CLCPA) mandates. The AREGCB Act and the May Order distinguish between distribution, local transmission and “bulk” transmission assets. The Transmission Report only addresses distribution and local transmission issues. Distribution facilities are regulated by the Commission according to the New York Public Service Law. Local transmission is subject to both state and federal regulation, but rates and cost recovery are regulated by the Commission pursuant to Public Service Law. The Transmission Report discusses proposals and recommendations concerning CLCPA Investment Criteria and Project Prioritization processes; Local Transmission Benefit Cost Analysis; project Cost Allocation and Recovery; Stakeholder Engagement, and the interplay with Public Service Law, Article VII siting process.

The Transmission Report acknowledges that the integration of clean generation in New York State will require a “restructuring and repurposing” of New York’s electric local transmission and distribution (sometimes referred to as LT&D) infrastructure. The Transmission Report proposes a distribution and local transmission capital plan for each utility and a corresponding planning process to guide future investments. The Transmission Report defines “local transmission” as transmission line(s) and substation(s) that generally serve local load, and transmission lines which transfer power to other service territories and operate at less than 200 kV, and focuses on adapting existing distribution and local transmission planning processes and identifying and accelerating select projects in order to facilitate achievement of CLCPA objectives.

The Transmission Report recognizes that the achievement of clean energy mandates will require modification of electric utilities’’ planning objectives, and therefore changes to the system planning and project prioritization processes, decision-making tools, and stakeholder involvement. The Transmission Report also notes that the CLCPA and the AREGCB Act may also require changes to existing practices concerning cost allocation and cost recovery, as certain benefits of the necessary or appropriate utility transmission and distribution investments will accrue not only to customers within, but also outside, the investing utility’s service areas. The Transmission Report proposes that for projects that support the CLCPA, project beneficiaries should include all customers across the state.

The full text of the Transmission Report and the full record of the proceeding may be reviewed online at the Department of Public Service web page: www.dps.ny.gov. The Commission may adopt, reject, or modify, in whole or in part, the actions proposed and may resolve related matters.

Statements and analyses are not submitted with this notice because the proposed rule is within the definition contained in section 102(2)(a)(ii) of the State Administrative Procedure Act.

(20-E-0197SP3)