Policy:
Summary of August 2026 PSC Interconnection Cost Transparency Order
August 26, 2026
In August 2026, the New York State Public Service Commission issued an Order on Interconnection Costs and Study Timelines. This Order was in response to NYSEIA's Interconnection Cost Transparency and Cost Certainty petition that the association filed in February 2025, as well as two legislative directives (RAPID Act and ASAP Act) and two Staff Proposals for the Commission to improve DER interconnection.
In this Order, the Commission declined to adopt NYSEIA's proposal to create an outer limit for interconnection customers' liability for utility cost overruns.
The Commission did implement NYSEIA and Staff proposals to improve utility cost estimation accuracy and transparency by formalizing an annual process for utilities to update the DER Interconnection Cost Matrix with average costs for common distribution upgrades based on recent actual project experience, and to file the Cost Matrix annually by March 31st. This transparency measure was required by the ASAP Act, which the legislature and Governor enacted in the FY2027 budget in June 2026.
Finally, the Commission directed utilities to develop a proposal to generate higher-confidence cost-estimates for interconnection upgrades, and to file this proposal for consideration by January 15, 2027.
Click "READ MORE" to read a more detailed summary of the Commission Order.
