Rochester Gas & Electric cannot determine the future impact of the Genesee County data center on ratepayers, the utility company said in a letter to Monroe County legislators.
RG&E clarified in the letter, in a response from a letter sent by four Democratic Monroe County legislators, that none of the upgrades planned for the data center would affect the resources or workforce for planned improvements to the grid in Monroe County, including upgrades in Henrietta and Penfield. They are separate and independent projects, said Patricia Nilsen, RG&E CEO, in a letter.
RG&E told Monroe County lawmakers that infrastructure costs tied to the Western New York Science, Technology and Advanced Manufacturing Park would not be borne by ratepayers, but that it cannot determine what effect large electricity users could have on future supply costs. The project’s electrical demand could reach 500 megawatts, making it one of the largest power users in the region. Critics argue that adding a round-the-clock load of that size could have consequences for the broader electric system and eventually influence electricity prices.
The costs of the upgrades at STAMP will be funded by the Genesee County Economic Development Center, including FAST NY funds to complete the substation the data center would use.
As companies locate at STAMP, they would be required to pay their share of the cost of the substation based on their usage, according to Mark Masse, president and CEO of GCEDC.
GCEDC is also entering into a maintenance agreement which covers the capacitor bank installed as part of the substation upgrade. The cost of constructing, operating and maintaining the equipment associated with the upgrades will not be borne by RG&E ratepayers, Nilsen said.
“Supply prices are established through competitive wholesale markets administered by the NYISO and RG&E does not control, set, or profit from the supply portion of customers’ bills,” Nilsen said in the letter.
“One of the state’s major utilities confirms the data center could impact our electric bills. That’s a big deal and a big red flag,” said Monroe County Legislator Rachel Barnhart, in a statement.
In its 2026 Power Trends report, the state grid operator said the number of large load proposals, like data centers, are rising at a time when reliability margins have tightened. Facilities running around the clock will affect local peaks and traditional load patterns. This includes a projected shift to electric use peaking in the winter instead of the summer in conjunction with continued electrification.
Demand is a significant factor in rising utility bills in New York, which the NYISO identified as a long-term pressure last October. While it identified increased electrification as one reason, it also mentioned the rapid expansion of semiconductor manufacturing and new data centers as the cause of a surge in electricity demand in the future, specifically identifying the Stream U.S. Data Center project at STAMP.
“Surging demand, from electrification and data center growth drives up prices and prompts calls for accelerated investment in new resources,” the NYISO blog post said.
This article originally appeared on Rochester Democrat and Chronicle: RG&E can’t determine impact of data center on ratepayers
Reporting by Steve Howe, Rochester Democrat and Chronicle / Rochester Democrat and Chronicle
USA TODAY Network via Reuters Connect
By Steve Howe, Rochester Democrat and Chronicle | USA TODAY Network
