Navigating Nuclear: Updates in New York

Building on our recent Navigating Nuclear client alert on New York and New Jersey,¹ we return to New York to highlight two recent developments. On 11 June 2026, the Public Service Commission (PSC) issued an Order Establishing a Nuclear Reliability Backbone Process.² Building on the Order, on 12 June 2026, the New York State Energy Research and Development Authority (NYSERDA) and New York State Department of Public Service (DPS) jointly issued an Advanced Nuclear Policy Options Paper.³

The Order provides an overview of New York’s plans to deploy advanced nuclear capacity, as part of New York’s “all-of-the-above approach” to meeting the state’s future energy needs, including the potential deployment of “one to two new gigawatt [GW]-sized nuclear plants” by 2040.⁴ The Order outlines two new processes, led by the DPS, to facilitate a pathway to add 4 GW of new “advanced nuclear”⁵ These two projects, when combined with New York’s existing nuclear capacity, would result in a total 8.4 GW Nuclear Reliability Backbone to provide a stable foundation of reliable, baseload power for New York’s future economic growth.  

The Options Paper builds on the Order and evaluates the policy mechanisms available to support new grid-scale advanced nuclear projects in New York. It identifies three key challenges confronting the deployment of advanced reactors: (1) pre-final investment decision funding, which can total “hundreds of millions of dollars for a gigawatt-scale project”;⁶ (2) private construction financing, which is a challenge due, at least in part, to cost overrun risk;⁷ and (3) operating revenue sufficiency for commercial viability, which, at the current levels, would likely require “a need for a level of public support.”⁸ While recommendations will be offered in a staff white paper expected to be issued in November 2026, the Options Paper favors pipeline deployment of multiple units of the same mature technology to capture learning-rate cost reductions, with built-in flexibility through opt-in/opt-out provisions.⁹

Interested stakeholders are requested to provide comments and responses to issues raised in the Options Paper and to the questions in the Order by 10 August 2026.¹⁰ A technical stakeholder conference will be convened before 31 October 2026, and a DPS Staff White Paper with recommendations to PSC is due by 13 November 2026. The full Advanced Nuclear Master Plan is expected to be issued by the end of 2026.¹¹

The firm’s Nuclear Energy practice group is monitoring this development and is ready to aid clients in developing comments and navigating the nuclear industry in the Empire State.