Democrat & Chronicle Opinion: New York’s energy policy undermines our economic development
January 16th, 2026
Justin Wilcox – Special to the USA TODAY Network
Jan. 16, 2026
Energy policy is poised to take center stage nationally in 2026. Here in New York, it already has — largely because of dramatic cost increases imposed on ratepayers and the negative impact on economic development driven by state policy choices and legislative mandates. Affordability can no longer be a buzzword deployed after the fact. The cost implications of energy policy must be part of the conversation before new mandates are enacted, not after they appear on monthly utility bills.
One way to blunt rising energy costs is economic growth. A growing economy spreads fixed costs, strengthens the tax base, supports investment in infrastructure and drives wage growth, giving New Yorkers higher incomes that can offset rising energy costs. But in New York, economic development itself is increasingly constrained by poor planning and policy choices around electric infrastructure and generation. Across the state, critical new projects are delayed or downsized because the electric system cannot support new demand. That failure is costing upstate potentially thousands of jobs and hundreds of millions of dollars in economic activity.
How is upstate impacted by New York’s affordability crisis?
In Monroe County, Ontario County and Broome County, proposed developments have stalled or required state intervention due to insufficient distribution capacity and the high cost of required upgrades.
In Henrietta, Monroe County, utility capacity at a key substation reached zero, putting more than 1,000 new housing units and hundreds of jobs at risk. While Monroe County did receive a $4.7 million state grant to upgrade the substation and promote development, other major residential and commercial projects across the state are unable to expand, are forced to relocate or are not happening at all because they cannot secure necessary power.Need a news break? Check out the all new PLAY hub with puzzles, games and more!
In Ontario County, grid limitations are delaying a 650-unit development in Canandaigua, which now faces $20–$25 million in upgrades to connect to the system. These limitations have impeded other projects, and additional parcels lack adequate capacity for future growth.
Broome County is receiving state funds to design and expand utilities at the proposed Broome Technology Park site, making it viable to host potential industrial and tech businesses.
These are not isolated cases. New site development, industrial park upgrades, affordable housing and basic commercial expansion are being hindered by the lack of available infrastructure. And while state grants for studies and infrastructure upgrades are necessary triage, they are no substitute for a comprehensive solution. For site selectors and investors, that sends a clear message: New York is a high-cost, high-risk place to build, and opportunities for wage growth are being constrained alongside development.
Infrastructure constraints are only part of the problem. Even if wires and substations are expanded tomorrow, New York’s generation outlook remains deeply concerning. According to the New York Independent System Operator, New York is losing dispatchable generating capacity faster than new resources are coming online. Existing power plants are retiring under regulatory and CLCPA mandates, while replacement generation — particularly firm, reliable capacity — has been slow to materialize.
New York’s economic development is at stake
This imbalance poses a serious challenge for economic development. Large-load users such as advanced manufacturing, semiconductor fabrication, food processing and data centers require reliable, high-quality and affordable on-demand power. New York cannot credibly attract employers when the grid is already strained to meet current needs, let alone accommodate significant new load growth.
At the same time, state policy is accelerating electrification across buildings, transportation, and industry. Demand is rising by design while reliable supply is shrinking. This contradiction weakens grid resilience, drives up costs and undermines New York’s competitiveness. Businesses are faced with higher costs, longer timelines and greater uncertainty — and are increasingly choosing to invest elsewhere.
Economic development depends on confidence — confidence that power will be available, reliable and affordable over the life of a project. Under current policies, New York continues to struggle. If state leaders are serious about promoting growth and affordability, energy policy must be built on realistic cost analysis, strategic infrastructure planning and a credible plan to maintain sufficient generation. Without that course correction, New York risks remaining both unaffordable and uncompetitive, losing jobs, investment and opportunity to other states.
Justin Wilcox is executive director of Upstate United, a nonpartisan business and taxpayer advocacy coalition focused on growing the upstate economy.