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New York Data Center To Seek PSC Declaratory Order On Sale Of Electricity Supply To Non-Affiliate Tenant Customers

November 19, 2019

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Copyright 2010-19 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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Greenidge Generation LLC stated an intent to, in the future, seek a declaratory order from the New York PSC concerning the sale of electricity supply to non-affiliate tenant customers of the data center

Greenidge is not seeking such a ruling currently.

Instead, it is seeking a declaratory order concerning the provision of power from its generation for its own (affiliate) use at a data center (rather than selling the output at wholesale on a merchant basis as done currently).

Greenidge operates a 106 MW generating facility (the "Facility") which currently sells its power in the wholesale market on a merchant basis

In its petition, Greenidge said, "Greenidge has now decided to use a portion of the electricity produced by the Facility in data center operations to be conducted at the site of the Facility, while continuing to sell the remainder of the output of the Facility on a merchant basis in markets administered by NYISO. In this Petition, Greenidge seeks a declaratory ruling concerning its proposal to lease the equipment used for data processing from and sell data processing services to its affiliate, Greenidge Coin LLC ('Coin') and to engage in data processing operations in its own name using power from the Facility. All of the electrical equipment to be used in providing such service will be located entirely on the Facility site, and no streets, ways or other public places will be crossed by any such equipment."

However, of most note is that, in its petition, Greenidge says, "In a future petition, Greenidge will address the extent to which any further approvals from the Commission may be required for it either to lease energized space at the site of the Facility to third parties who would install and operate their own data processing equipment in that leased space or to sell power from the Facility to third parties leasing space from Greenidge at the project site."

In the instant petition, Greenidge requested that the Commission issue a declaratory ruling confirming that Greenidge’s own use of electricity produced by the Greenidge Facility in on-site data processing facilities leased from Coin is not subject to regulation by the Commission under the Public Service Law; or (2) alternatively, that Greenidge may engage in such on-site data processing operations under its existing CPCN and subject to lightened and incidental regulation; and (3) that the portion of the output of the Greenidge Facility that will continue to be sold into the wholesale markets operated by NYISO will remain subject to lightened regulation.

Case 19-E-0718

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