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New York PSC Directs ConEd To Identify Market-Based & Regulated Solutions To Forecasted NYC Capacity Shortfall

December 18, 2025

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Copyright 2025 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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Citing projected shortfalls in electric capacity in New York City, the New York PSC ordered ConEdison to file an NYC Reliability Contingency Plan and, in parallel with identifying potential solutions ConEd could undertake itself to solve, or contribute to solving, the anticipated reliability needs, to also undertake an RFI to identify potential market-based and regulated solutions that could assist in meeting the identified reliability needs.

Within 180 days, Con Edison shall file preliminary recommendations for the NYC Reliability Contingency Plan

"The Commission seeks a portfolio that considers all available clean and non-emitting options and technologies. In developing these options, Con Edison is directed specifically to consider the results of innovative pilots and demonstration projects (such as Reforming the Energy Vision demonstration projects) and the potential of building on these to develop impactful new approaches to providing resources that can effectively contribute toward solving the reliability need," the PSC said

"The Plan should also consider any regulatory measures that the Company believes may contribute to resolving the identified needs. These include, as potential examples, actions or opportunities that may exist to improve current regulatory processes, tariffs, changes to rate structures, and other measures that can be taken to accelerate the development of the identified solutions and to achieve even greater benefits, recognizing that timing is of the essence," the PSC said

The PSC said that the Commission, "seeks to ensure the development of a comprehensive portfolio of solutions that prioritizes and leverages all available clean and non-emitting options, including, but not limited to, demand side management (e.g., energy efficiency and demand response, among other potential options), energy storage, transmission and distribution, distributed renewable resources, and other non-emitting options. Con Edison’s proposed NYC Reliability Contingency Plan must 'turn over every stone' to define a portfolio that is consistent with the State’s clean energy and climate goals; thus, proposed solutions must be consistent with CLCPA requirements."

The PSC "encouraged" the Long Island Power Authority to conduct a similar contingency plan

The PSC said, "In essence, the studies indicate that the supply resources predicted to be available to system operators over the 10-year planning horizon will not be adequate to support reliable service to New York City customers. This is an outcome the Commission cannot allow. Faced with this possibility, it is the Commission’s responsibility to take proactive measures to ensure safe, adequate, and reliable electric service over the coming years."

Case 25-E-0764

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