NY S08540

Requires electric corporations, gas corporations, and municipalities to create a separate service classification for "large energy use facilities" (data centers with peak demand of 20 megawatts or more used for computing, data processing, web hosting, or streaming support)

Mandates that all costs to serve these large facilities—including infrastructure upgrades, improvements, operational costs, and rate of return—be assigned entirely to the large energy use facility classification rather than spread to other customers

Establishes an adjustment mechanism to ensure commodity price increases and transmission service fees attributable to large energy use facilities are borne by those facilities, not other ratepayers

Authorizes the Department of Public Service to require financial surety from large energy use facilities, including insurance, bonds, letters of credit, or self-insurance qualifications

Prohibits rate changes after the effective date unless they include the required large facility service classification, with full implementation required by June 1, 2030, and no new classifications taking effect before June 1, 2027