1. About PSEG Long Island
  2. Rates and Tariffs

Standby Rates

When a customer operates on-site generation to serve their own electric load, PSEG Long Island is required to “standby” and provide 24/7 back-up power to serve that load in the event the customer’s generation fails or is taken down for maintenance. That often involves installing and maintaining energy infrastructure solely to meet that customer’s needs. Standby Rates, in place throughout New York State, better align a utility’s cost for this service with revenue recovered and prevent shifting those costs to other customers.

Effective January 1, 2026, Standby Rates are mandatory for certain commercial and industrial customers whose electricity requirements are partly self-supplied through onsite generation.* They are optional for all other customers.

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Download a Standby Rate Application. For more information about Standby Rates, contact PSEG-LI-PAMInterconnect@psegliny.com.

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In addition to power supply charges and other surcharges, they consist of the following charges:

  • Monthly Customer Service Charge
    A fixed amount that does not vary based on usage 
  • Delivery Service Contract Demand Charge
    Per kW of Contract Demand. This is a reservation charge for the use of the Company’s local distribution system initially set at the maximum anticipated demand of the customer
  • As-Used Daily Delivery Service Demand Charge (Peak)
    Per kW of daily peak demand during peak hours (3 PM to 7 PM, weekdays, excluding federal holidays) 
  • As-Used Daily Delivery Service Demand Charge (Off-Peak)
    Per kW of daily peak demand during off-peak hours (all hours outside peak hours, including weekends and federal holidays)

Will there by a Phase-In Period for mandatory customers?
Existing mandatory standby customers on or before December 31, 2025, are eligible for a phase-in of the rate over six years.  Exemptions based on size and renewable technology apply, per LIPA Tariff Leaf No. 264D.

Downloads
For customers with on-site generation, download the Rate Booklet.

 

* There are numerous technology (i.e., solar, wind) and size-based (i.e., less than 5kVA, less than 15% of maximum potential demand) exemptions to Standby Rates, consistent with Public Service Law §66-j and Public Service Commission orders (Cases 15-E-0751, 19-E-0079).