On Monday, officials in Canandaigua were the latest to hear about a growing crisis: Insufficient electrical capacity, which is delaying housing developments, threatening business expansion, and placing long-term economic development goals at risk. That was the sobering message delivered by Ontario County Economic Developer Ryan Davis and County Supervisors David Baker and Nancy Yacci.
Davis, who previously briefed the Ontario County Board of Supervisors on the issue in July, presented the same data to Canandaigua officials. He warned that the region’s electric grid is already over capacity in key areas and that the cost of upgrades is placing immense financial strain on developers.
“The information hasn’t changed,” Davis said. “My understanding of the information has gotten better.”
Countywide housing stalled by electric limitations
Davis reported that Ontario County must build 2,500 housing units by 2030 to meet existing demand identified in its housing needs assessment. But despite widespread municipal support for pro-housing initiatives, electrical service constraints are now the main obstacle.
In one example, Davis said developers behind the proposed 650-unit Uptown Landing project in the Town of Canandaigua were recently told by utilities NYSEG and RG&E that it would cost $20–25 million to supply power to the site. A cost estimate issued in December 2024, initially pegged at $14.3 million, excluded 18 line items, many of which Davis said are likely to result in additional charges.
“This cost estimate is basically distribution lines,” Davis said. “It’s not a realistic number.”
The cost covers only that specific site, and Davis emphasized that power capacity would not extend to nearby properties. “If you were to build something across the street, down the road, a block or two away, the capacity would not be there,” he said.
In response, the county and local developers are applying for funding through the state’s $100 million Pro-Housing Infrastructure Support Program. But Davis cautioned that grant requests far exceed the available funds. “Ultimately, the state and/or the utilities will be choosing a winner and a loser,” he said.
Canandaigua among the most affected
The city is not exempt from these constraints. Davis pointed to a proposed 80-unit development at 10 Chapin Street in Canandaigua as another project stalled due to the area’s “zero” available electric capacity.
During the meeting, officials also referenced other projects in jeopardy, including apartment units behind Lowe’s and proposals considered for the city’s Downtown Revitalization Initiative (DRI), which may add 75 units, rooftop mechanicals, and elevators—all of which require electricity.
“We are picking winners and losers,” said Councilmember Erich Dittmar, who expressed concern that Canandaigua projects may be sidelined due to systemic delays and limited infrastructure.
Davis warned that the city’s transformer and substation capacity is nearing its limits. “There are very few instances in Ontario County, but especially in Western Ontario County, where at least two of those three [system components] are a negative,” he said, referring to substations, transformers, and distribution lines.
Economic impact extends beyond housing
While the housing shortage is urgent, Davis emphasized that the problem also affects job growth and business recruitment. He cited the example of a SpaceX-owned facility on Route 332 that currently operates with limited staff but plans to ramp up to a 24/7 operation with more than 100 employees. Davis said that expansion would place additional stress on an already overburdened grid.
“This is a jobs issue,” he said. “The houses are where jobs go at night.”
Davis noted that commercial properties such as the former Crosman Arms facility in East Bloomfield may be inaccurately categorized as having lower demand, further skewing utility data. “If they’re using that demand at close to zero, East Bloomfield has a bigger capacity issue than what the utilities understand,” he said.
Call for systemic changes and faster data
Council members and supervisors agreed that utilities and state agencies must act. Davis said that developers often wait months for basic information about capacity and cost, which disrupts project timelines and adds financial risk.
In one case, a developer proposing 34 townhomes in Phelps was required to submit increasingly detailed engineering documents simply to receive a response from the utility.
“We can’t wait nine months for answers,” Davis said. “The municipalities need this information so they know where to point water and sewer pipes.”
Councilmember Gwen VanAllen asked what the city could do to support reform efforts. Davis responded that coordinated resolutions from local governments would help raise pressure on the Public Service Commission and state officials.
“The squeaky wheel needs to get greased,” Supervisor Baker added, urging collaboration among cities, towns, and counties to push for faster investment and policy change.
VanAllen and Dittmar expressed support for drafting city resolutions aligned with those proposed by the Canandaigua Local Development Corporation (CLDC) and other towns.
No quick fixes on the horizon
Even if funding is secured, Davis said the timeline for infrastructure improvements remains long. The Uptown Landing cost estimate includes a 34-month completion window, not including delays caused by permitting or seasonal construction constraints.
A CFA (Consolidated Funding Application) request submitted by the town seeks the maximum $10 million grant but requires a developer match to reach the estimated $25 million total cost. Other municipalities in Ontario County have submitted applications totaling over $30 million.
Supervisor Yacci, speaking after the presentation, said public education and regional coordination will be essential to navigating the issue.
“The only way forward right now is to be the squeaky wheel,” Davis reiterated.
A developer in the room confirmed that no official service letters have been issued for a nearby apartment project. Council members expressed concern that these projects could advance through local approvals without final utility sign-off.
County meeting scheduled with developers
To address the data gap, Davis said the county, in coordination with State Senator Pam Helming and the chamber of commerce, will host a meeting with residential developers on August 13. The goal is to aggregate development timelines and load requirements to provide the utilities with comprehensive planning data.
Council members and county supervisors also agreed to explore additional resolutions calling for:
- Faster turnaround of electric capacity and cost estimates from utilities
- Infrastructure investment through state programs or utility reform
- Policy changes at the state level to address systemic causes of capacity constraints
Supervisor Baker acknowledged the complexity but called for persistence. “We are going to need help,” he said. “Let’s not close those avenues.”
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