Engage Your Utility

As you plan for decarbonization, it’s best to engage your utility to discuss existing service and potential future upgrades, receive technical guidance, and access financial incentives. While this process can seem like a challenge, coordinating with your utility should not be a barrier to decarbonization. This resource offers guidance for initiating work with your utility and how to prepare for those conversations.

6 Steps to Upgrade Your Facilities

1. Identify Your Provider and Contacts 

Identify and connect with your electric utility provider through the Joint Utilities of New York or connect with your facilities or accounting team for guidance.

Once identified, work directly with your institution’s utility account manager to understand what incentives and technical support can be offered.

2. Discuss Your Project

Discuss your project with your utility provider to determine any necessary upgrades and identify which incentive programs your project may be eligible for. In most cases the utility provider will be able to provide advice and guidance on next steps for implementation, alternative projects if necessary, and information on available incentives.

Depending on the project scale, involvement with the electric utility will vary. For some projects, particularly those involving only building-level strategies, advance notice may be all that is required. Additionally, implementing certain strategies may only involve a reduction in electrical loads. For larger or more complicated projects that require service upgrades, such as those involving entire campuses, the implementation process may be delayed until the utility can evaluate load impact on the local grid infrastructure.

During your initial discussion, you can also request information on available incentives that are applicable to your proposed project. Your utility contact should be able to provide you with required documentation and assist with compiling the necessary information.

3. Determine Electrical Service Impacts (If Electrifying Fossil-Fuel Based Systems)

At this point, depending on the nature of your project, you may be engaging with an outside engineering or construction firm. For projects involving a transition from fossil-fuel-fired to electric-powered equipment, a certified electrical engineer should determine if any electrical service upgrades are required to implement the project. If so, coordinate with the utility further to confirm if the local electrical grid has the capacity to handle the increased demand.

Your utility provider must review electrification projects that require a change in electrical service capacity in detail before progressing into the final design or installation phase. Certain projects may trigger the need for an interconnection study based on estimated electrical demand increases or power quality. Your design engineer or contractor should know what documentation the utility will require and can coordinate with them.

If a single project increases a building or campus's power demand by 10 MW or more, it triggers a System Impact Study by the New York Independent System Operator (NYISO). As part of this process, NYISO evaluates the broader grid impacts, validating the local utility’s assessment. The campus electrical engineer can coordinate with NYISO to provide the necessary load data, with the utility engaged throughout.

4. Coordinate Incentive Applications

When working with an engineering or construction firm, be sure to communicate any incentives that you plan to apply to the project. This in turn will help these experts meet incentive program requirements when selecting equipment. Most programs require application before equipment is purchased. Depending on the requirements of the incentive funding, your utility provider may request the use of a utility-certified contractor for installations. Some providers may also require an onsite preliminary inspection.

5. Receive Approval and Continue Design

After submitting the preliminary design (commonly through project pre-approval) and addressing comments or changes made by your utility provider, your project should receive a notice to proceed. Typically, the utility will put a 90-day time constraint upon receipt of the notice to proceed and the submission of the project completion paperwork. This step, in tandem with the previous steps, can be an iterative process as elements of the conceptual design are bound to change.

6. Acquire Incentives

Submit the final incentive application(s) to your utility provider as soon as the design process is complete. Typically, incentive applications require supplemental documentation such as equipment cutsheets, sizing calculations, cost estimates, and design drawings. Once the project is fully installed, provide relevant invoices or receipts to the utility company so they can release their incentive payment to the institution.