Assemblywoman Didi Barrett, D-Hudson, is pictured at the start of the 2024 legislative session in Albany. Barrett is critical of Gov. Kathy Hochul’s decision to veto legislation creating a Grid Modernization Commission.

As concerns mount over the future reliability of the state’s power grid, Gov. Kathy Hochul has vetoed legislation creating a Grid Modernization Commission.

The veto was one of 114 issued recently by the governor, including 24 bills authorizing studies or commissions.

“I share a strong desire in addressing the problems and issues identified in this legislation, and I commend the Legislature for seeking to address such a broad array of problems,” Hochul wrote in her veto message. “However, enactment of this package of legislation would collectively cost the state approximately $24 million.”

The state Assembly unanimously passed legislation (A.6253) forming the commission in early June, with the state Senate also passing the bill unanimously before the end of its session.

Assemblywoman Didi Barrett, D-Hudson, said the primary goals of the commission will be to identify critical state transmission needs and conduct annual studies to support the buildout of high-voltage transmission facilities that meet those needs. The commission will conduct a study of research, development, and demonstration of electric grid modernization that addresses the principal challenges identified in the New York Independent System Operator’s 2021-2040 System & Resource Outlook and identify tools, resources, and deployment models that may improve the grid’s performance. The commission would also make recommendations on grants to carry out eligible projects related to the modernization of the electric grid in collaboration with the New York State Energy Research and Development Authority. Future draft energy plans would require the state Energy Planning Board to consult with the Grid Modernization Commission and its grid modernization report.

Barrett issued a statement Monday criticizing Hochul’s veto of the Grid Modernization Commission.

“And just last week, the NYISO released yet another report flagging reliability concerns due to our aging grid infrastructure and increased electrical demands,” Barrett said. “But the governor similarly vetoed our bill to task NYSERDA with creating a Grid Modernization Commission. As NYSERDA operates outside of the state budget cycle, neither of these necessary initiatives can be included in the NYS budget, despite what the governor suggests. As Chair of the Assembly’s Energy Committee, I have worked to introduce thoughtful and strategic legislation to help us reach our climate goals while ensuring both affordability and reliability. But if we are truly intent on decarbonizing our state while facing the many challenges ahead, we must all work together in a more open and transparent process. I hope the governor and NYSERDA will join us in the work ahead.”

The ISO report Barrett referenced is the 2024 Reliability Needs Assessment, which raised more concerns about the state’s electric grid. The assessment, issued every two years, evaluates the future reliability of the New York electric grid considering forecasts of power demand, planned upgrades to the transmission system, public policy and changes to the generation mix over a ten-year period. The report identifies a violation of reliability criteria in New York City in 2033 and highlights growing risks to electric system reliability statewide. According to the findings of the RNA, the identified New York City reliability need is 17 megawatts in the summer of 2033 and increases to 97 megawatts in the summer of 2034.

“Our latest report demonstrates the continued importance of the NYISO’s in-depth planning process and the need to closely monitor the rapidly changing electric grid,” said Zach Smith, Senior Vice President, System and Resource Planning. “In this RNA, we highlight several risk factors that could adversely affect system reliability in the months and years ahead.”

ISO officials say electrification of the transportation and building sectors and large, energy-intensive commercial projects that include data centers and chip fabrication are increasing demand at the same time 2023 legislation requires the New York Power Authority (NYPA) to deactivate its small natural gas plants located in New York City and Long Island known as peaker plants. Deactivating the peaker plants would result in a loss of 517 megawatts, though the 2023 state law does allow the New York Power Authority to confer with the state ISO to determine if the plants are necessary for electric system reliability.

Power shortfalls could be overcome if new electric generating capacity comes online as well as construction of new transmission facilities. Of particular importance, according to NYISO officials, is the on-time completion of the Champlain Hudson Power Express project that will import hydropower from Canada into New York City through an interconnection point at the Canada-New York border. Cables will be installed for 339 miles underground and underwater from Lake Champlain at the U.S-Canada border to a Converter Station in Astoria, Queens, where the power will be converted so it can be injected into New York City’s energy grid for local distribution.

The project is supposed to be completed by 2026, and ISO officials warn that a delay in the project could mean there isn’t enough electric capacity in New York City starting in 2026. If the project is delayed ISO officials say there will need to be either new generation brought online or a decrease in projected demand.

“First I think this bill is very important to ensure grid reliability and I appreciate the efforts of the sponsor,” said Assemblyman Andrew Goodell, R-Jamestown, speaking in support of the Grid Modernization Commission in June. “I also want to note that the sponsor did include on the commission members from the minority, which I think is also important, and I appreciate that gesture on behalf of the sponsor.”