Congressman questions ReCharge NY benefits. Debate grows over data center energy costs in Rockland County
By Cesar A., Reporter
ROCKLAND COUNTY, N.Y. — U.S. Rep. Mike Lawler is calling on Gov. Kathy Hochul and the New York Power Authority to disclose how much three Orangeburg data centers are saving through a state economic-development program that provides qualifying businesses with lower-cost electricity.
In a letter to Hochul dated Sept. 18, Lawler asked the governor to release the value of the discounts provided through NYPA’s ReCharge NY program, as well as the electricity rates paid by the facilities. The letter also was copied to NYPA President and CEO Justin Driscoll.
Lawler’s demand follows reporting by The Journal News that three of four data centers clustered in the Orangeburg section of Orangetown receive discounted electricity through ReCharge NY. According to that report, NYPA declined to disclose the amount the companies save or the rates they pay, saying that information is proprietary and protected under contract.
Who would have thought that discounts needed to be hidden? With that logic, ShopRite would have been out of business 20 years ago.
ReCharge NY is a statewide economic-development program that makes lower-cost power available to qualifying businesses and nonprofit organizations. In return, participating companies make commitments involving such factors as retaining or creating jobs, expanding operations and making capital investments in New York. NYPA says 910 megawatts are designated for the program, with allocations awarded through a competitive process.
Lawler argued that the public should know the financial value of those benefits, particularly as residents face high electricity costs.
“Residents deserve to know whether their rates will go up,” Lawler wrote, urging the administration to reconsider the discounts or, at minimum, disclose the total annual cost of the discounts and the average subsidy provided to participating businesses.
Lawler also blamed Hochul administration policies for New York’s comparatively high electricity prices. Federal data confirms that electricity prices in New York are substantially above the national average, although the data itself does not establish the cause of that difference. In June 2026, the latest month currently available from the U.S. Energy Information Administration, the average residential electricity price in New York was 29.49 cents per kilowatt-hour, compared with 18.34 cents nationally — about 61% higher.
The dispute comes two months after Hochul announced a one-year moratorium affecting new hyperscale data centers while the state develops additional environmental and ratepayer protections. Her July 14 announcement temporarily paused certain state environmental permits for new large-scale projects and said the administration would pursue legislation to repeal sales-tax exemptions for massive data centers. Hochul said at the time that rapid data-center growth could put additional pressure on utility bills, natural resources and the electric grid.
Moratorium – 2026 Word of the Year
The moratorium, however, concerns new hyperscale projects and the state permitting process. Hochul’s announcement did not say that existing ReCharge NY power allocations would be canceled.
Lawler cited the two policies in his letter as evidence of what he described as an inconsistent approach by the state, arguing that New York should not criticize or restrict data-center development while simultaneously providing some existing facilities with discounted electricity.
NYPA describes ReCharge NY differently, characterizing the program as an economic-development tool intended to keep businesses and jobs in New York and encourage new investment. Its publicly available participant records include Orangeburg businesses receiving ReCharge allocations.
The Rockland County congressman also pointed to federal legislation passed by the House this week. On Sept. 16, the House approved the bipartisan Ratepayer Protection Act by a 417-3 vote. The measure would require state utility regulators to consider whether large electricity users, including data centers, should bear incremental infrastructure costs associated with serving them.
That provision is narrower than requiring every data center outright to pay all grid-upgrade costs. Consumer group Public Citizen has argued that the bill does not go far enough because it directs states to consider such cost protections rather than establishing a uniform federal requirement.
Lawler also referenced several bipartisan artificial-intelligence bills he has worked on this year. He introduced the Children Harmed by AI Technology, or CHAT Act, in January; joined Rep. Josh Gottheimer in introducing the AI Workforce Training Act in February; and recently introduced the Stop Rogue AI Act, which would direct the National Institute of Standards and Technology to develop standards and practices for identifying, monitoring and controlling AI agents.
The immediate issue for Rockland County, however, is how much state-supported electricity is being provided to the Orangeburg facilities and what financial benefit those arrangements provide.
Lawler is asking Hochul and NYPA to make those figures public, arguing that residents should be able to evaluate the costs and benefits of state support for energy-intensive data centers.
As of Friday afternoon, publicly available statements reviewed for this article did not show a new response from Hochul or NYPA specifically addressing Lawler’s Sept. 18 letter. NYPA’s previously reported position is that individual customer rates and savings are protected as proprietary contractual information.
The problem with that position, is that the public has no idea how sincerely to respond “thank you so much”.
Cesar A. is a reporter for Rockland News. He resides in Haverstraw, NY.