Expect a Cruel Summer for New York Electricity Prices

One official says the best way to reduce pain for ratepayers this summer would be to look to state and local legislatures to cut taxes on electric utilities.

AP/Seth Wenig, file
Governor Hochul February 17, 2022. AP/Seth Wenig, file

New Yorkers are going to need to prepare for a summer of higher electricity prices, and one official is even arguing that lawmakers should give households the same tax breaks they gave drivers.

A Con Ed representative, Phillip O’Brien, told the Sun that New York City and Westchester County residents should expect an 11 percent to 12 percent increase in the average energy bill versus last summer’s costs, though some believe that prices could increase more.

For an average New York apartment using 350 kilowatt hours a month, that would be an increase to $116 from about $104 in 2021.

“Your bill is one-third the cost of supply — which we are not allowed to increase even one cent. The other third is delivery, which is a set rate, and then the rest of it is taxes,” Mr. O’Brien told the Sun.

New York City and its suburbs have been particularly vulnerable to swings in the price of natural gas and thus electricity since the closure of the Indian Point nuclear power plant in Westchester.

“The supply prices are market-driven and the utilities under commission jurisdiction have little to no control on the cost of the electricity they supply to their customers,” a New York public service department engineer, Andrew Timbrook, said.

He added that last summer’s “actual market prices ended up 35 percent to 45 percent higher than what we expected” and that “going into 2022 energy prices are expected to be higher still than last year’s by between 37 and 42 percent.”

The public service commissioner, John Howard, argues that though the cost of natural gas is out of New York’s control, the state could take measures to reduce the burden.

“There is nothing particularly unique in the Northeast Natural gas spike, it’s happening all over the world,” he said. “Americans have to recalculate, say, ‘Oh my god the world energy markets are not controlled by us.’”

Mr. Howard argued that the best way to reduce pain for ratepayers this summer would be to look to state and local legislatures to cut taxes on electric utilities.

On Friday, the governor called a similar rate hike in Rochester “outrageous and unacceptable.”

“At a time when so many are struggling, the last thing they need is unjustified & unfair utility rate increases,” wrote Governor Hochul. “I will keep fighting to put money back in their pockets.”

“The real story that no one has written about is that 25 cents of every dollar in an electric bill goes to New York City,” Mr. Howard said. “It’s New York City’s biggest single taxpayer, over $2 billion — billion with a ‘b.’”

He argues that the recent suspension of New York State’s 16 cents per gallon gasoline tax could be a model for electricity taxes.

“Isn’t it somewhat ironic that the legislature and local government rushed to cut energy taxes on motor fuel and none of them rushed to cut taxes on electricity?” Mr. Howard asked.

An Empire Center analyst, James Hanley, said he thinks that despite measures taken to avoid another February-like price spike, a big increase remains a distinct possibility.

“A lot of it depends on how hot the summer gets,” he said. “The situation in Ukraine is not likely to change soon — it’s possible we’re going to have a more expensive winter next year as well, so we should all pray for mild weather.”

Mr. Hanley suggested that New Yorkers, both up and downstate, should plan for higher energy costs this summer.

“I think people should be forewarned and should think about how they should prepare for that,” Mr. Hanley said. “They may want to keep their houses a little warmer than they may like to ideally.”


The New York Sun

© 2025 The New York Sun Company, LLC. All rights reserved.

Use of this site constitutes acceptance of our Terms of Use and Privacy Policy. The material on this site is protected by copyright law and may not be reproduced, distributed, transmitted, cached or otherwise used.

The New York Sun

Sign in or  Create a free account

or
By continuing you agree to our Privacy Policy and Terms of Use