NYISO: surge in large‑load requests could erode reliability; shortfalls identified for NYC and Long Island

ALBANY, N.Y. — The New York Independent System Operator (NYISO) told the Assembly Energy Committee on Oct. 27 that New York’s electric grid is at “an inflection point” and flagged near‑term reliability concerns in parts of the state.

NYISO’s senior vice president of system and resource planning, Zach Smith, told the committee the system faces three converging trends: aging fossil‑fuel generation that is being retired, increasing difficulty in permitting and building new resources, and a fast rise in large new electric loads tied to advanced computing and industrial growth. “These requests can very much outpace the rate at which we can get new generation and supply onto the system,” Smith said.

Smith said NYISO’s interconnection queue contains roughly 10,000 megawatts of large‑load proposals, but planners are treating about 3,000 megawatts of that volume as plausibly moving forward for resource planning. Separately, the operator identified near‑term reliability shortfalls in New York City beginning in 2026 and in Long Island beginning in 2027, driven largely by generator deactivations in those areas.

The operator said it will follow tariff‑required processes to study and solicit solutions; options may include new local generation, transmission additions and demand response. Smith emphasized the difference between studying generator interconnections (a detailed FERC‑regulated process) and load interconnections, where NYISO’s role is to assess reliability impacts and hand results to utilities and developers for solutions. He urged more flexible approaches to interconnection and operational tools to allow some resources to connect sooner while transmission upgrades proceed.

Smith also described tools that could help manage system voltage and transfers, including dynamic reactive power devices (synchronous condensers, STATCOMs) and grid‑enhancing technologies. He noted that other regions — notably ERCOT — have adopted more flexible “connect‑and‑manage” approaches that allow projects to connect earlier under operational constraints; NYISO and stakeholders are watching federal and regional developments.

The NYISO testimony underscores a technical planning point echoed through the hearing: even if many interconnection proposals are speculative, the pace and scale of requests can compress the timeline for adding dispatchable generation and transmission, increasing the risk of capacity shortfalls and upward pressure on wholesale prices if not managed.

No regulatory decision was made. NYISO said it will continue stakeholder work and, where required by its tariff, open processes to identify and procure reliability solutions.