Interconnection in the Northeast — particularly in New York and New England — has evolved well beyond a technical exercise. As discussed at Harris Beach Murtha’s Connecticut Power and Energy Society (CPES) Interconnection Breakfast hosted earlier this week in our Hartford office, developers, utilities and regulators clearly recognize the interconnection process presents real cost, timing and execution risk.
For developers and investors, the focus remains clear: managing costs, preserving project economics and maintaining schedule certainty. For utilities, the mandate is equally clear: ensure safe, reliable service while proactively managing an increasingly complex and dynamic grid. Interconnection sits at the intersection of these priorities — and success requires balancing both.
Against a backdrop of aggressive Distributed Energy Resource (DER) deployment and rapid grid modernization, interconnection queues are more congested, screening processes are more rigorous and cost exposure for upgrades is more significant. The takeaway from both recent regulatory developments and industry dialogue is straightforward: early, informed and continuous communication is critical to achieving workable outcomes for all stakeholders.
Key Risks Before You File
- Pre-Application Due Diligence
Failure to evaluate hosting capacity, circuit conditions and queue dynamics can result in costly delays or project withdrawal. Developers should leverage available data and engage utilities early to better understand constraints — and avoid misalignment on feasibility. - Misalignment with Utility Screening Criteria
Initial screens are increasingly rigorous, particularly for storage and hybrid resources. Projects that are not well-aligned with utility requirements at the outset face extended review timelines and increased upgrade risk. - Upgrade Cost Exposure and Allocation Disputes
System upgrade costs remain one of the most significant pressure points. As DER penetration increases, so does the likelihood of triggering upgrades — and disputes over responsibility. Transparent engagement on assumptions, scope and timing can help mitigate surprises. - Queue Dynamics and Project Viability
Queue position materially affects both timelines and economics. Withdrawals, restudies and process reforms introduce uncertainty that must be actively managed in coordination with utility counterparts. - Evolving Regulatory Requirements
Regulators such as the New York State Public Service Commission (NYS PSC) and Connecticut Public Utilities Regulatory Authority (PURA) continue to refine interconnection frameworks. These changes can shift timelines, obligations and dispute pathways midstream, reinforcing the need for an integrated regulatory and project strategy.
Interconnection Strategy Is Shared Strategy
Interconnection is no longer just an engineering or legal milestone — it is a shared strategic process. The most successful projects recognize:
- Developers must manage cost and timing discipline
- Utilities must plan proactively for system impacts and reliability
- Regulators expect both to engage constructively within evolving frameworks
The common ground — reinforced at the CPES roundtable — is that communication before and during the interconnection process is essential. Early coordination on system constraints, study assumptions and development timelines leads to better outcomes, fewer disputes and more predictable project delivery.
Stakeholders should:
- Engage early and often with utilities and regulators
- Integrate technical, regulatory and commercial considerations from project inception
- Maintain active dialogue throughout the study process to address issues in real time
- Anticipate and collaboratively plan for upgrade and cost allocation issues
- Align project strategy with broader grid management and modernization objectives
Where Harris Beach Murtha Can Help
We advise developers, investors and utilities on interconnection strategy across New York and New England, bringing experience from both inside utilities and in regulatory proceedings.
We help clients:
- Navigate interconnection processes and resolve disputes
- Balance project economics with utility operational requirements
- Engage effectively in regulatory proceedings shaping interconnection policy
- Manage upgrade cost risk and negotiate practical outcomes
- Align development strategy with evolving grid planning and regulatory expectations
If you’re advancing a project or reassessing your interconnection strategy, Harris Beach Murtha’s Energy Industry Team welcomes the opportunity to discuss how these trends — and the themes raised at our CPES Interconnection Breakfast — may affect your portfolio.
If you need assistance, please reach out to attorney Daniel R. Canavan at 203-772-7749 and dcanavan@harrisbeachmurtha.com, or the Harris Beach Murtha attorney with whom you most frequently work.
This alert is not a substitute for advice of counsel on specific legal issues.
Harris Beach Murtha’s lawyers and consultants practice from offices throughout Connecticut in Bantam, Hartford, New Haven and Stamford; New York State in Albany, Binghamton, Buffalo, Ithaca, New York City, Niagara Falls, Rochester, Saratoga Springs, Syracuse, Long Island and White Plains; as well as in Boston, Massachusetts, and Newark, New Jersey.