N.Y. Comp. Codes R. & Regs. tit. 9 § 1802.3
Whenever the governing body first determines that use of urban renewal project land for public utility use is not inconsistent with the previously approved urban renewal plan for the duly designated project area, the municipality or agency may grant, sell, convey or lease, without public hearing or public letting, franchises, easements or rights of way in any lands acquired by the municipality or agency, to a public utility subject to the jurisdiction of the Public Service Commission, for construction and maintenance of public utility distribution systems, and the conduct and operation of such distribution systems for such length of time as may be deemed advisable and upon such terms, conditions, restrictions and considerations as in the judgment of the governing body shall seem proper, provided, that any such grant, sale, conveyance or lease for such purpose shall not be made absolute but shall as a condition thereof provide that such use shall be subject to the public convenience and necessity.
N.Y. Comp. Codes R. & Regs. Tit. 9 § 1802.3