On July 17, 2025, the Public Service Commission (PSC) rescinded the Public Policy Requirement identified in the 2022 PSC proceeding. This action terminated the New York Independent System Operator, Inc. (NYISO)’s New York City Public Policy Transmission Need (PPTN) process – a transmission initiative to integrate offshore wind generation to the state grid – citing uncertainty prompted by recent federal actions and the associated costs to ratepayers determined to be unjustifiable. The stated basis for the PSC’s withdrawal of the PPR was the Trump administration’s moratorium on offshore wind permitting, which, as of now, has imperiled the future of offshore wind development, at least in the near term. Given the current permitting challenges, the PSC concluded that it would be “irresponsible to commit the State’s ratepayers to assuming the costs of further funding the major offshore wind transmission infrastructure contemplated in the Public Policy Requirement (PPR) Order.”

In a 2023 order, the PSC identified the Climate Leadership and Community Protection (CLCPA)’s as a Public Policy Requirement under the NYISO’s tariff, driving the need for transmission facilities to deliver an additional 4,770 megawatts (MW) of offshore wind energy generation into the New York City load zone, known as Zone J. Among other things, the CLCPA provides the State must procure 9,000 MW of offshore wind by 2035. In response to the PSC 2023 order, the NYISO began solicitating and evaluating potential solutions. The NYISO had confirmed the viability and sufficiency of the submitted project proposals and, as recently as last month, NYISO offered initial evaluation results with respect to theNYC PPTN. Results included preliminary information concerning independent capital cost estimates, offshore wind injection, production cost savings, impact on transfer limit, and a risk assessment of potential construction delays. According to NYISO’s independent consultant, preliminary independent capital cost estimates ranged from $7.9B to $23.9B, with production cost savings between $40B to $70B over 20 years.

Although the Public Policy Requirement was withdrawn, the PSC stated that it remains committed to deploying offshore wind generation and related transmission infrastructure and has directed its staff to take various actions. Specifically, the PSC directed Department of Public Service staff to:  

• Work with the NYISO to gather lessons learned through the PPTN process to date to inform future planning work for offshore wind generation and transmission development.
• Construct a path forward for the responsible, cost-effective deployment of transmission and offshore wind generation, incorporating the lessons learned from the NYC PPTN process.
• Address these issues in the review of Clean Energy Standard (CES) solicitation practices directed by the Commission in the recent CES Biennial Review Order, and to explore approaches to planning offshore wind infrastructure that reduce project development risks, promote cost-effective solutions, and maximize reliability and affordability benefits to the State’s ratepayers.
• In coordination with the New York State Energy Research and Development Authority and the NYISO, identify what clean energy solutions may be available to incorporate into existing reliability planning processes, to be identified in the 2026 CES Biennial Review or at an earlier time if there are changes in federal policies.

This decision underscores the federal government’s pivot from renewable energy, especially offshore wind, and has implications for New York’s climate-related public policy initiatives and its efforts to meet its climate goals. Moreover, the indefinite “pause” on offshore wind projects may create a gap in the State’s ability to meet the renewable energy targets established by the CLCPA, depending on its length. As a result, the success of New York’s land-based renewable generation portfolio, its determination in the 2026 CES Biennial Review concerning continuing the CES ZEC program for existing nuclear assets, and the consideration of its recently announced plan to explore new nuclear generation, become more crucial in order for the State to remain on track to timely achieve the CLCPA mandates.