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NYS Department of Public Service -
Utility Economic Development Programs

Purpose

The Department of Public Service oversees utility rate payer funded Economic Development Programs in the following utility service territories:  Central Hudson Gas and Electric Corporation, National Grid, National Fuel Gas Distribution Company, New York State Electric and Gas Corporation, and Rochester Gas and Electric Corporation.  These programs provide utility incentives and/or rate reductions to help attract new business’ to New York, retain certain commercial and industrial customers or help this customer group expand their businesses. 

Central Hudson Gas and Electric Corporation
Central Hudson has several Economic Development Programs to help Commercial (non-retail) and Industrial customers relocate or expand in the Hudson Valley including:

  • Job creation utility credit based on the number of new jobs created
  • Energy rebate on targeted substations and gas mains extensions, which are significantly under utilized
  • Revitalization rate discounts, which can provide up to a 10% rate discount on qualified vacant buildings of 25,000 square feet or more
  • Provision for up to 50% of the cost of a NYSERDA audit and up to 50% of the cost of recommended audit improvements
  • Eligibility:  Non-residential customers of Central Hudson.
  • Contact: Anthony Campagiorni, Assistant Vice President - Governmental Affairs & Economic Development, NYS Department of Public Service, (845) 486-5201

National Grid
The National Grid Economic Development focuses on site development, urban revitalization, strategic marketing, and facilitating customer growth through infrastructure assistance, energy efficiency and productivity improvement. The Plan also reflects an increasing emphasis on sustainable development, the efficient use (and re-use) of existing energy infrastructure, and the strategic deployment of renewable generation technologies.

  • The Business Attraction program offers discounts to prospective customers who are evaluating locations both inside and outside National Grid's service territory. It is also open to new businesses considering a start-up of operations in the National Grid service territory. There are two levels of attraction discounts, the deeper of which is available to more energy intensive manufacturers.
  • Business Expansion program is available to current National Grid customers (25 kW or larger) who are evaluating an expansion of their existing usage—either through physical expansion (i.e., increase in kW) or increased utilization (i.e., higher kWh usage). The customer's existing usage is "baselined," and discounts are applied above those historical levels of usage. Certain growth thresholds must be hit in order to qualify for discounts.
  • The Revitalization program is designed to retain large manufacturing facilities in danger of closure due to financial distress. In order to qualify for discounts, customers must provide detailed financial information that demonstrates financial distress, identify and implement non-energy cost savings, and develop a comprehensive revitalization plan that will return the company to profitability within the five-year discount period.
  • The Relocation program offers larger industrial customers discounts to prevent the relocation of manufacturing facilities to areas outside the National Grid service territory. In order to qualify, customers must demonstrate that they have an economically viable relocation alternative. And in recognition of the fact that electricity cost by itself is seldom the only factor driving a relocation challenge, the SC-12 discount must be part of a comprehensive competitiveness plan that includes public involvement in the form of state and/or local incentives or concessions.
  • The Capital Investment Incentive program provides grants to fund electric and natural gas improvements on National Grid owned or required natural gas and electric infrastructure for certain businesses projects that involve major capital investment in plant and equipment. Specifically this program supports business attraction or expansion projects located in the service territory of National Grid. The projects must demonstrate that they have not been able to secure sufficient funding through federal, state or local economic development programs.
  • The Industrial Building Assistance program provides grants of up to $250,000 to building owners undertaking efforts to retrofit the interior electric and gas infrastructure required to convert these buildings to multi-tenant industrial use. The grants will be made through local industrial development agencies or other quasi public development corporations.
  • The Brownfield Redevelopment program provides grants to fund utility related infrastructure improvements and other costs that are necessary to progress the redevelopment of a brownfield site or vacant building.
  • Eligibility: Non-residential customers in National Grid’s upstate territory.
  • Apply here.
  • Contact:  Brian Anderson, National Grid, (315) 428-5140

National Fuel Gas Distribution Company (NFG) Area Development Program
Grant program designed to help address the poor economic conditions upstate.  ADP provides NFG with tools to help make its service territory a more attractive place for business, thereby protecting and expanding employment opportunities and new investments.

New York State Electric and Gas Corporation
Rate discounts and funding assistance.

  • Incremental Load Incentive (ILI) program provides a reduction from the standard tariff rate, on a per kilowatt-hour basis, for non-retail businesses locating or expanding in NYSEG's service area.
  • Empire Zone Incentive (also known as the “Economic Development Zone Incentive” or EDZI) provides a reduction from the standard tariff rate, on a per kilowatt-hour basis, for businesses locating or expanding in a designated Empire Zone.
  • Competitive Pricing: Electricity and Natural Gas- Under special tariffs, NYSEG can provide negotiated prices to new customers or for qualified expansions by existing customers. Eligibility is contingent upon the applicant  having: A competitive alternative to NYSEG services; A minimum connected load; and, consideration of appropriate energy efficiency measures
  • Brownfield/Building Redevelopment program provides funding assistance, on a per project basis, to encourage the redevelopment of a "brownfield" site or vacant building within NYSEG's electric service area.
  • Utility Infrastructure Investment program supplements funding from other sources, on a per project basis, of new electric delivery related facilities involving existing or prospective manufacturing or large non-retail commercial customers with electric demand of 100 kilowatts or more, if a minimum of $1 million is invested in a new or expanded facility.
  • Capital Investment Incentive program provides financial assistance, on a per project basis, for electric delivery related infrastructure to encourage additional capital investment to an eligible facility.  In addition to manufacturing and non-retail customers, other eligible businesses include colleges, universities, medical hospitals and laboratories.
  • Agriculture Capital Investment program provides funding assistance, on a per project basis, for electric delivery related infrastructure for smaller farms having incremental electric demand of at least 25 kilowatts after new capital investment of at least $50,000.
  • Business Energy Efficiency Assistance is a program which NYSEG partners with the New York State Energy Research and Development   Authority (NYSERDA) on several programs to encourage energy efficiency.
  • Economic Development Outreach program allows NYSEG to supplement other economic development funding, on a per-initiative basis, for strategic outreach projects that will primarily focus on attracting new business investment into the NYSEG service area.
  • Gas Infrastructure Investment program provides funding assistance for new gas delivery related facilities to manufacturing or non-retail commercial customers making a minimum capital investment of at least $250,000 and increasing gas usage by at least 50 Therms per hour.
  • Power Quality/Reliability program allows NYSEG, in consultation with the customer and/or its representatives, to pay up to 50% of equipment costs required for power reliability or quality improvements to be installed behind the meter.
  • Eligibility: Participants vary by program but can include: gas and electric manufacturing and non-retail customers, farms. colleges, universities, medical hospitals and laboratories in NYSEG’s service territory of upstate New York.
  • Contact: Dawn Cote, New York State Electric and Gas Corporation, (800) 456-5153

Rochester Gas and Electric Corporation (RG&E) Economic Development Programs and Incentives
Rate discounts and funding assistance for gas and electric customers in the RG&E Service territory including:

  • Capital Investment Incentive Program program provides grants to fund improvements for electric-related infrastructure for certain business projects that involve major capital investment. This funding may be on equipment either owned by RG&E or the customer (as directed by RG&E). This program supports both business attraction and expansion projects that involve an existing or prospective customer with a monthly incremental electric demand after capital investment of at least 100 kilowatts (kw). To be eligible, total project cost must also involve capital investment of at least $1 million.
  • Utility Infrastructure Investment Program provides funding for new electric-related infrastructure to assist in the development of certain sites or buildings. These sites represent the service area's best potential for development opportunities. Primary focus is on sites which are: state-designated as Shovel Ready, located in an Empire Zone, part of the City of Rochester Renewal Community, or included in RG&E's own Prime Sites Program. Other sites are considered based on economic impact to the community. This program supports both business attraction and expansion projects that involve an existing or prospective customer with a monthly incremental electric demand after capital investment of at least 100 kilowatts (kw). To be eligible, total project cost must also involve capital investment of at least $1 million.
  • Brownfield/Building Redevelopment Program provides on a per project basis, grants to fund electric-related infrastructure improvements and other costs necessary for the redevelopment of brownfields or vacant buildings. The program targets Empire Zones or qualified areas in the City of Rochester designated as a Renewal Community. Funds may only be utilized for up to 10% of the redevelopment costs and cannot exceed the estimated cost of the electric delivery-related infrastructure improvements.
  • Business Energy Efficiency Assistance Program is a joint venture with RG&E and the New York State Energy Research & Development Authority (NYSERDA) on several programs to encourage energy efficiency. Under these NYSERDA programs, the applicant will be required to make their own financial contribution of at least 33 1/3% to the total investment made. Through NYSERDA's Energy Audit Program, RG&E will provide up to 50% matching funds, with a $10,000 maximum contribution against the total investment made as a result of an energy audit.
  • Through either NYSERDA's Flexible Technical Assistance Program (Flex Tech) or New Construction Program, RG&E will pay up to 33 1/3% of the cost of a feasibility study or analysis, not to exceed $20,000 per study/analysis. If the applicant decides to make investments as a result of a study or analysis, RG&E will provide up to $50,000 toward total investment made.
  • Empire Zone Incentive Program - Businesses that are Empire Zone certified by New York State are eligible for a discounted electricity and natural gas delivery rate on new load for up to 10 years, providing that the customer's certificate remains valid. A new Empire Zone customer is eligible for the reduced delivery rate on 100% of their demand and energy consumption. An existing RG&E customer located in or moving into a Zone is eligible for the discounted rate on qualified load. Qualified load is electric demand (kw) or natural gas usage (therms) that exceed a predetermined baseline (historical) usage by 25%. For more information on the NYS Empire Zone program, visit their Web site.
  • Incremental Load Rate Incentive - Businesses that add a minimum of 25 kilowatts (kw) of electric load may be eligible for a discounted electricity delivery rate for a four-year term. The rate is limited to businesses in the following industries: Agriculture, Forestry, Fishing, Mining, Manufacturing, Wholesale trade-durable goods, Wholesale trade non-durable goods, Finance, Insurance, and Real Estate or Business Services.
  • Under special tariffs, RG&E can provide negotiated prices to new customers or for qualified expansions by existing customers. Eligibility is contingent upon the applicant having a competitive alternative to RG&E and minimum connected load.
  • Eligibility: Participants vary by program but can include: gas and electric non-residential customers in RG&E’s service territory of upstate New York.
  • Contact: Dawn Cote, Rochester Gas & Electric Corporation, (800) 456-5153

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