Otis Singleton
New York has a deregulated energy market, which means that consumers have the power to choose their electricity provider and plan. This has resulted in over 200 independent energy service options, keeping energy rates competitive. The best time to shop for a plan is during spring and fall, as you can lock in lower prices before HVAC use spikes in the summer or winter. The cheapest times of day for electricity use in New York depend on your chosen plan and provider. For example, Con Edison offers a time-of-use rate plan, where electricity is cheaper between October and May, and during off-peak hours (midnight to 8 a.m.) in the summer months.
| Characteristics | Values |
|---|---|
| Average residential electricity rate | 22 ¢/kWh to 26.53 ¢/kWh |
| Average commercial electricity rate | 21.72 ¢/kWh |
| Fixed-rate plans | Set price for the duration of the contract (usually up to 3 years) |
| Variable-rate plans | Price fluctuates based on the energy market |
| Time-of-use rate plans | Lower rates during off-peak hours, higher rates during peak hours in summer |
| Renewable energy options | Solar panel systems, community solar farms |
| Deregulated energy market | Residents can choose their electricity provider |
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What You'll Learn
New York's deregulated energy market
New York has a deregulated energy market, which means that consumers can choose their electricity provider. This came about through the Public Utilities Regulatory Policies Act, which began in the 1970s and was furthered by the Energy Policy Act of 1992. The New York Public Service Commission (PSC) passed legislation to open the state's residential energy markets to competition in 1996, and the market was deregulated in 1998.
Prior to this, Consolidated Edison (also known as Con Edison, Con Ed, ConEd, or ConEdison) held a monopoly on the New York energy market, generating, supplying, and delivering electricity to all customers in its area. Now, residents can select the energy service company (ESCO) that best meets their needs. This high competition keeps energy rates lower and provides a plethora of options.
The rate you pay for energy in New York depends primarily on the supplier you choose. Nearly all energy providers offer fixed-rate plans with contracts lasting between six and 36 months, as well as variable-rate plans. Fixed-rate plans offer more stability, as the rate per kilowatt-hour (kWh) remains the same for the duration of the contract, although the bill can still go up and down depending on consumption. Variable-rate plans can save money when demand is low, but they can also lead to high energy bills if the local energy price increases.
The geography of New York state makes it ideal for producing renewable energy, and the state ranks fifth in the amount of energy generated from renewable sources, with a focus on hydroelectric power. Many New York ESCOs offer renewable energy options, with some plans relying on 100% green energy. The state requires all utility providers to produce a portion of the energy they sell from renewable sources, and New York has added over 1,700 MW of renewable energy generation in the first 15 years of competitive energy markets.
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Time-of-use rates
New York has a deregulated energy market, meaning that residents can choose their energy supplier. This has resulted in high competition between energy suppliers, which generally leads to lower prices for consumers.
Con Edison (Con Ed or ConEd) is one of the largest energy companies in the US and offers a range of plans and services, including time-of-use rates. Under the Con Edison residential time-of-use rate plan, you will pay less than the standard rate for electricity any time of day between October and May. During the summer months of June through September, you will need to shift your energy use to off-peak hours (midnight to 8 am) and avoid using large devices and appliances during peak times, as well as during the super-peak period (Monday through Friday from 2 to 6 pm).
Con Edison also offers small business and large commercial time-of-use rates. Under the small business time-of-use rate, you will pay less than the standard rate during off-peak hours (Monday through Friday, 10 pm to 8 am, and all day on weekends). During the summer months, you will need to shift your energy use to off-peak hours and avoid using large devices and appliances during peak times. The large commercial time-of-use rate has similar guidelines, with off-peak hours being slightly more expensive than those of the small business rate.
It is important to note that if you switch from a time-of-use rate to a standard rate, you will be unable to re-enroll in the time-of-use rate for 18 months. Additionally, these rates do not include various surcharges, so your final bill may differ from the rates presented.
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Super-peak pricing
In New York, electricity rates are subject to time-of-use pricing, which means that the cost of electricity varies depending on the time of day, day of the week, and season. This is done to encourage consumers to use more electricity during off-peak hours and reduce demand during peak hours.
The super-peak pricing structure is often part of a voluntary time-of-use rate program offered by utility companies, such as the SC-1 VTOU rate by National Grid. Under this program, customers are billed based on their kWh usage during the on-peak, off-peak, and super-peak periods. While super-peak pricing results in higher charges during the specified hours, customers can take advantage of lower rates during the off-peak periods.
It is important to note that super-peak pricing may not apply to all customers. For example, in New York, customers who purchase their electricity supply from energy service companies instead of the local utility company may be exempt from super-peak rates. Additionally, the specific time periods and rates for super-peak pricing can vary between utility companies and customer types, such as residential or commercial.
By understanding the super-peak pricing structure and adjusting their electricity usage accordingly, consumers in New York can optimize their energy costs and take advantage of lower rates during off-peak hours.
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Fixed-rate plans
If you're looking to save money on your electric bill in New York, one option to consider is enrolling in a fixed-rate plan. With this type of plan, you lock in a specific rate for your electricity supply, which means that your rate will stay the same throughout the entire contract term, typically lasting between 6 and 36 months. This can be particularly advantageous when compared to variable-rate plans, where rates fluctuate monthly based on market conditions.
One key benefit of fixed-rate plans is budget predictability. Once you lock in your rate, you know exactly how much you'll be paying for your electricity supply each month, making it easier to plan your expenses without worrying about unexpected surges in your bill. This stability can be especially beneficial for households with tight budgets or those who want to avoid the volatility associated with variable rates.
There are a variety of fixed-rate plans offered by different electricity suppliers in New York. When choosing a plan, it's important to pay attention to the contract length, early termination fees, and other terms and conditions. Some plans may offer longer contract terms, providing rate stability over an extended period, while others might have shorter terms that allow for more flexibility but may come with higher rates. It's essential to review the terms carefully to ensure you select a plan that aligns with your needs and preferences.
Additionally, it's worth noting that your fixed-rate plan only covers the supply portion of your electric bill. The delivery portion, which includes charges for transmitting electricity to your home, is still subject to variable rates set by the utility company. These delivery charges can vary based on your location within New York and the specific utility company servicing your area. Therefore, it's important to understand the breakdown of your electric bill and be aware of any potential changes in delivery rates that could impact your overall costs.
When considering a fixed-rate plan, it's crucial to compare offers from multiple electricity suppliers. You can do this by visiting energy comparison websites or by contacting the suppliers directly to request information about their available plans. By carefully reviewing the terms and rates offered by different suppliers, you can make an informed decision that best suits your needs and helps you lock in a competitive rate for the duration of your contract. Remember to pay attention to factors such as contract length, early termination fees, and the supplier's reputation to ensure you're making the right choice for your specific situation.
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Variable-rate plans
New York has two major utilities that supply electricity to the state: Con Edison, which serves New York City and Westchester County, and National Grid, which serves parts of
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Frequently asked questions
The average electricity rate in New York is 22.66 cents per kWh, which is 51% higher than the national average.
The cheapest electricity rate available in New York is 21 cents per kWh.
Electricity in New York is the cheapest during off-peak hours, which are typically between 10 pm and 8 am on weekdays and all day on weekends. During the summer months, from June to September, it's best to use electricity between midnight and 8 am to avoid peak charges.
You can find the cheapest electricity rates in New York by comparing prices from different energy providers and plans. New York has a deregulated energy market, which means you have the power to choose your electricity provider. You can use online tools like EnergyBot and ChooseEnergy to compare prices and find the best plan for your needs.
