Compare New York Electricity Rates

New Yorkers have the option to choose an alternate energy company to lower the supply rate on the electric bill and save money. New York is among a growing list of states that have taken steps to deregulate the electricity market allowing outside energy companies to provide supply services to residential and commercial residents. However, New York electricity rates remain some of the highest in the country.

New York Electricity Rates vs. National Average

The average price of electricity for residential customers in New York is 18.27 cents per kWh. This is 44% higher than what the average American pays! Commercial residents don’t fare much better. The average price of electricity for commercial customers is 14.09 cents per kWh and is 37% higher than the national average.

Customer	New York	U.S. Average	Time Period
Residential	18.78¢/kWh	13.34¢/kWh	February 2021
Commercial	15.16¢/kWh	11.93¢/kWh	February 2021
Industrial	6.02¢/kWh	8.15¢/kWh	February 2021

New York Energy Deregulation

The New York Public Service Commission (PSC) took steps in 1996 to deregulate the electricity market with the passage of the Competitive Opportunities Case. This act unbundled the responsibilities of the utility companies and opened the door to outside energy suppliers to give New York residents a choice for supply services.

Before energy deregulation, utility companies had a monopoly over the generation, transmission, and delivery of power in their respective service areas. If a customer was unhappy with the rate, there was little they could do to change. Thanks to energy choice, New York residents have more power to take control of their energy costs by shopping for an alternate energy company.

Basic Service Charge

The utility companies are required by the PSC to provide their customers that decide not to switch electric suppliers a basic service charge for supply services. The basic service charge changes throughout the year and is often called the price to compare. Customers can use the price to compare while comparing energy plans. If an energy company is offering a supply rate lower than the price to compare then the customer will be saving money by switching to the new energy supplier.

New York Utility Companies

New York has six main utility companies that operate throughout the state. The main responsibility of these utility companies is to manage and control the power lines that deliver electricity to homes and businesses in their respective service areas. As mentioned above, the PSC also requires the utilities to act as the supplier of last resort to those who have not switched energy companies. Below are the six main utility companies that operate throughout New York.

Con Edison

Con Edison’s service area covers the most popular areas of New York including Brooklyn, Manhattan, New York City, Staten Island, Westchester, and Westchester County. With the service area being one of the most densely populated areas, Con Edison provides energy services to more than 10 million customers.

Con Edison Customer Contact Number: 1-800-752-6633

New York State Electric and Gas (NYSEG)

NYSEG is a subsidiary of AVANGRID, which owns eight utilities in New York, Massachusetts, and Connecticut. The utility company provides services to over 900,000 electricity customers in upstate New York.

NYSEG Customer Contact Number: 1-800-572-1131

Orange and Rockland

Orange and Rockland’s service area covers both areas of New York and New Jersey. The utility company delivers natural gas and electricity to nearly 450,000 customers. This includes a service area of 1,300 square miles.

Orange and Rockland Customer Contact Number: 1-877-434-4100

National Grid (NIMO)

National Grid is known as one of the largest investor-owned utility companies in the United States. The utility company provides energy services to more than 20 million customers in New York, Rhode Island, and Massachusetts. The service area mainly covers the western and northern areas of New York.

National Grid Customer Contact Number: 1-800-642-4272

Central Hudson

Central Hudson operates in the southeast region of the state and is responsible for delivering energy services to over 300,000 New Yorkers. Residents living in the service area that experience a power outage or any issues with services can contact the utility company.

Central Hudson Customer Contact Number: 1-845-452-2700

Rochester Gas and Electric (RGE)

Rochester Gas and Electric (RGE) is one of eight utility companies owned by AVANGRID. RGE’s service area is located on the western side of the state and mostly includes urban New York. The utility company provides electric services to nearly 400,000 customers.

Rochester Gas and Electric (RGE) Customer Contact Number: 1-800-743-1701

New York Renewable Energy

New York is one of the states that have implemented Renewable Portfolio Standards (RPS). The RPS is a set of regulations that require a set percentage of energy sold inside the state to come from renewable energy sources. The set percentage will begin to increase in the coming years putting more pressure on energy suppliers to invest more in renewable energy sources and move away from conventional methods of power generation such as oil and coal. According to the U.S. Energy Information Administration, New York’s RPS was revised in 2019 requiring carbon-free electricity by the year 2040. New York electricity rates will indeed be impacted by these measures.

Thanks to the abundance of rivers in New York, the state consistently ranks as one of the top producers of hydroelectricity in the nation. The largest percentage of hydropower that is produced in the state comes from Robert Moses Niagara’s hydroelectric power plant right near Niagara Falls. This is currently the third-largest hydroelectric power plant in the nation by capacity. The second most produced renewable energy source comes from wind power. The amount of power generated by wind had nearly doubled in the past decade. In 2019, wind power represented 4% of all net power generation in the state.

Electricity Generation by Source

The top three sources of electricity generation come from natural gas, nuclear power, and hydroelectricity. These three resources combined provide more than nine-tenths of the state’s electricity net generation. The state counts Nuclear Power as an energy source that will be included in the goal of 100% carbon-free electricity by 2040.

Choosing an Energy Plan

With the introduction of energy choice in New York, it makes sense to shop around for an alternate energy company and protect yourself from rising energy costs. The electricity market can be volatile and staying on the utility’s basic service charge may not be the best option. However, with so many energy suppliers providing energy plans how do you know which one is right for you? The first step is deciding what you are looking for in the plan. Most people want to find the lowest rate possible but there is a growing demand for renewable energy products.

The two most popular energy rate products include fixed and variable rate plans. Deciding between the two products depends on the customer’s risk tolerance. Fixed rates will not change during the agreement. If energy prices rise then the customer will be protected. However, if energy prices drop then the customer may be stuck paying a higher rate. Variable-rate plans fluctuate monthly. If you believe energy prices may continue to drop in the future then this plan may be right for you. However, if prices rise then you may be stuck paying a much higher rate. Below are a few pros and cons of the most popular energy plans.

Electric Rate Products	Pros	Cons
Fixed Rate	Remains fixed through duration of term Protects against market volatility Available to both commercial and residential customers	Might pay higher rate if energy market drops Comes with cancellation fee
Variable Rate	Most plans have no cancellation fees Available to both commercial and residential customers	Can easily double or triple in price Supplier can increase rate at their sole discretion
Index Rate	Historically lower than fixed rate plans Can be switched to a fixed rate plan without penalty Tied directly to the wholesale price of electricity	Exposure to market risk Only offered to large industrial size users
Renewable Energy Rates	A clean alternative solution Reliable source of power Available to both commercial and residential customers	You may pay a high premium More expensive than coal

Frequently Asked Questions

When Will I be Switched?

When you sign up with a new energy plan then you will be switched over on the next available meter read. A billing cycle is typically every 30 days. This means if you sign up right after your meter read then you won’t be switched over until the following month.

Is There an Early Cancellation Fee?

Most energy plans will contain an early cancellation fee if the customer changes electric suppliers before the expiration of the energy contract. The early cancellation fee will be listed in the energy plan’s terms and conditions. These fees can cost up to $300 so make sure you’re at the end of the agreement before changing energy suppliers!

Can I be Double-Charged?

No, it will not be possible to receive two separate electric bills from different energy suppliers for the same billing period. The utility company is responsible for overseeing the switch and will not accept power from two energy suppliers for the same account at once.

What Happens at the End of my Term?

If the customer does not take action at the expiration of the agreement, then most energy suppliers will change the customer to a monthly variable rate. Once this happens do not be surprised to have the rate double or even triple in a single billing period. We recommend shopping around for a new energy plan a month before the plan expires.