A Note from NYISO President & CEO Rich Dewey on Power Trends 2026
The transformation now underway in New York’s electric system stands alongside two defining periods in our history: the original buildout of the grid during the turn of the last century, and the sweeping expansion that followed World War II. In each of those moments, the Empire State met a surge in economic growth and technological change with vision, investment, and a commitment to reliability.
Early planners recognized the importance of building a system that could support industry, communities, and long-term prosperity. New York benefited from a remarkable diversity of energy resources, including the development of the Niagara Power Project, which harnessed one of the state’s most abundant natural assets to deliver reliable, low-cost electricity at scale. Later, investments in safe, advanced nuclear generation helped provide power that supported decades of industrial growth, strengthened the state’s manufacturing base, and improved the quality of life for millions of New Yorkers.
Those decisions were not made in response to immediate needs alone. They reflected foresight about the demands of future generations. As a result, New York built one of the most robust and reliable electric systems in the nation, enabling sustained economic expansion and supporting the health, safety, and prosperity of its residents.
Today, we face another moment of comparable significance.
New York’s grid is once again being reshaped by the convergence of technological advancements, evolving public policy, and changing patterns of supply and demand. The transition to a cleaner energy system, combined with rapid electrification and new energy-intensive economic development, is creating both opportunity and risk at a scale not seen in decades.
The NYISO’s recent planning studies and operational experiences tell an emerging if not consistent story: reliability margins are tightening, and the system is becoming more sensitive to uncertainty.
Across the state, longstanding generation resources are retiring or aging, while new supply is not being added at the pace or with the characteristics necessary to fully replace them. As a result, the electric system is operating with narrower margins for error, increasing exposure to extreme weather, fuel constraints, and variability in both supply and demand.
At the same time, electricity demand is rising and becoming more difficult to forecast. Electrification of buildings and transportation, combined with rapid growth in large energy-intensive projects such as data centers and advanced semiconductor manufacturing, is placing additional pressure on the system. These trends are reshaping how and when electricity is needed, shifting risk toward winter months and increasing the need for resources that can respond flexibly and perform reliably under sustained stress.
A central challenge is the growing gap between the operational capabilities required to maintain reliability and those provided by the evolving resource mix. Conventional generating units, many of which are 50 to 70 years old, continue to supply critical reliability services, including dispatchable output, voltage support, and dependable multi-hour performance. Yet these units face increasing risks of outages, maintenance constraints, and retirement pressures.
These conditions underscore a fundamental need: New York requires additional new generation and infrastructure, especially resources that are flexible, dependable, and capable of operating through extended periods of high demand.
The good news is that New York has a strong foundation to meet such challenges. Competitive wholesale electricity markets remain one of the state’s most effective tools for maintaining reliability and attracting necessary investment while minimizing costs to consumers.
The competitive electric markets administered by the NYISO reward operational excellence, incentivize flexibility, and encourage innovation across all resource types. They guide investment toward the resources and locations on the electric system where they are needed most. All while allocating investment risk to private developers rather than consumers and shielding ratepayers from the cost of uneconomic or underperforming investments.
In this way, wholesale electricity markets serve multiple essential functions at once: they support reliability, reduce costs through competition, protect consumers from financial risk, and enable the system to adapt to changing conditions.
Yet the system must be supported by policies that recognize these present and emerging risks while taking necessary action toward solutions that align with operational needs.
Electricity is foundational to New York’s economy, public health, and quality of life. It powers homes and businesses, supports critical services, and enables continued economic growth. Ensuring that electricity remains reliable at reasonable cost is essential to every New Yorker.
As highlighted in our Power Trends 2026 report, challenges before us are real, but so too are the tools available to address them. By aligning market structures, policy objectives, and investment decisions, New York has the opportunity, once again, to evolve our electric system to support economic growth, protect public health and safety, and strengthen the Empire State for generations to come.
Rich Dewey
President and Chief Executive Officer
New York Independent System Operator
