Friday, November 6, 2026
AI Infrastructure · News & Analysis
Home › Power & Energy › Report
Power & Energy · Report

New York regulators approve a $3.3 billion transmission line project led by New York Transco and New York Power Authority, targeting 2030 completion.

Northeast grid capacity upgrade supports future AI datacenter siting and power delivery for compute-intensive clusters across the region.
Trade pressSlicast · September 21, 2026 at 12:55 UTC · Global · Source: Utility Dive
importance 58

On Thursday, the New York Public Service Commission approved a 90-mile transmission line project aimed at boosting clean energy flows—including from offshore wind—between Long Island and the rest of the state. The $3.26 billion Propel NY Energy project is being developed by New York Transco and the New York Power Authority.

The project was selected by the New York ISO in 2023 as part of its public policy transmission planning process to bolster downstate reliability. It will include new underground transmission lines at both 138 kV and 345 kV levels, connecting to nine existing or new substations and running through Suffolk, Nassau, Queens, Bronx and Westchester counties.

Opponents argued the project was no longer necessary given the cancellation of several offshore wind projects. However, regulators rejected this reasoning. The New York PSC noted in its order that while "the pace of offshore wind energy generation development has slowed," the underlying need for the infrastructure remains. The state's renewable energy goals have not changed despite recent modifications to its Climate Leadership and Community Protection Act. New York currently has more than 1,800 MW of offshore wind either operating or under construction, and the state maintains a 9 GW offshore wind goal by 2035 and a target for the statewide electric demand system to be zero-emission by 2040.

"While it is true that the pace of offshore wind energy generation development has slowed ... contrary to the arguments made by some parties, the need for the project continues to exist," the PSC said. "Moreover, while some recent changes to the CLCPA have been made, the statutory targets ... were not modified, and the target that the statewide electric demand system be zero-emission by 2040 similarly remains in place."

The PSC's approval reflected a joint proposal backed by the New York Power Authority, New York Transco, the New York State Department of Public Service, other state agencies, the City of New York and the Long Island Commercial Fishing Association. PSC Chair Rory Christian stated that the commission's review demonstrated "that this critical infrastructure project meets our statutory siting standards and will help provide needed power downstate."

The PSC is continuing to review Propel NY's Environmental Management and Construction plans, which must receive approval before construction can begin. The commission will accept comments on these plans through October 1. Developers say some construction could begin later this year "at discrete areas along the route," with more comprehensive construction anticipated to start in mid-2027 pending all approvals and permits. The project is targeted for completion in 2030, with construction executed in limited segments and phases.

Sea Cliff Village Administrator Bruce Kennedy expressed continued concerns, telling the Long Island Herald that the village is "thoroughly reviewing the decision and weighing all available options for our next steps," adding that "Sea Cliff is not done protecting our residents, our community and our harbor."

Read the original
New York regulators approve a $3.3 billion… · Slicast