New York PSC Opens Proceeding To Develop New Nuclear Plants, Ownership Remains "Open Issue"

The New York PSC initiated a process to evaluate new nuclear power plants under a "Nuclear Reliability Backbone", with ownership of any new nuclear generation remaining an "open issue"

The PSC said, "The question as to who should own new nuclear projects is an open issue that requires careful consideration. New York State has an established history of looking to the private sector to own and develop generation resources. At the same time, the magnitude of the Nuclear Reliability Backbone process is of a scale where the State has a compelling interest in ensuring that all efficiencies of financing, coordinated planning, and risk management are brought to bear."

"Through this proceeding, the Commission seeks to evaluate the costs and revenue opportunities of new nuclear plants, building on the work of the 0x40 Assessment and SEP [State Energy Plan], to determine potential funding needs and pathways. Should new State support be required, new funding sources or programs may be necessary as current clean energy program funding sources may not fit this purpose," the PSC said

Among other questions, the PSC sought comment on:

• What considerations are most relevant to the question of ownership model, in best deploying a Nuclear Reliability Backbone for the benefit of New Yorkers?

• What are the appropriate financial mechanisms of State support for new advanced nuclear development? What are the appropriate levels of such support? What forms of pre-FID (final investment decision) government support would be most valuable or appropriate?

• What considerations are most relevant to the question of contracting with large loads as off-takers, in achieving cost-effectiveness, timeliness, grid integration, and risk management?

The PSC noted that the New York State Energy Research and Development Authority (NYSERDA) and Department of Public Service staff are separately filing the New York State’s Advanced Nuclear Policy Options Paper (Options Paper), which was developed as part of the Master Plan for Responsible Advanced Nuclear Development in New York

Department of Public Service staff and the New York State Energy Research and Development Authority shall convene at least one public technical conference before October 31, 2026

Department of Public Service was directed to prepare a white paper addressing the issues and policy options for filing no later than November 13, 2026.

NY Governor Kathy Hochul previously directed the for the Department of Public Service to build a pathway to 4 gigawatts of new nuclear power on top of the at least 1 gigawatt in new nuclear that she called upon the New York Power Authority in 2025 to develop and construct