Publications
Large Load Policy & Technical Analysis
The overarching issue this report addresses is “… how other states handle situations where utilities are left with stranded costs after building out energy infrastructure for large customers, special services, or projects that ultimately do not materialize.” In approaching this issue, this report focuses primarily on the following three areas of inquiry(1) cost-recovery tools regulators use for stranded assets, (2) allocation of costs tied to large commercial and industrial customers or special-service infrastructure that doesn’t materialize, and (3) treatment of canceled or abandoned projects when investments prove uneconomic or imprudent.
Synapse Large Load Policy Guide for NM PRC
Large load customers, particularly data centers and cryptocurrency mining facilities, have the potential
to provide economic and utility system benefits, including increased sales that may help spread fixed
costs over a larger customer base. At the same time, these customers often require substantial
investments in electric system infrastructure to serve their large and concentrated loads.
If customer protections and cost allocation methods are not appropriately designed, existing customers
may bear costs associated with serving large load customers or face increased risk if anticipated loads
fail to materialize. Utilities and regulatory commissions are therefore adopting a range of mechanisms to
recover the incremental costs associated with serving large loads, minimize the risk of stranded
investments, and protect existing customers. This memo discusses best practices for achieving these
objectives through tariff provisions, service agreement terms, and cost allocation practices.