Wholesale Electric Rates in NY Hit 12-Year Low

1

Some good news: The state announced today wholesale electricity rates hit its lowest point since the industry was deregulated 12 years ago.

It’s due in part to the surplus of natural gas — which is noteworthy because New York is in a pitched battle over whether to allow for hydraulic fracturing for natural gas.

From the AP:

RENSSELAER, N.Y. (AP) — New York’s electrical grid operator says the average price of wholesale electricity hit a 12-year low last year, thanks to a glut of cheap natural gas and market competition that drives greater efficiency.

The New York Independent System Operator, or NYISO, said Wednesday that the average annual wholesale price of electric energy in the state was $45.23 per megawatt hour. The previous record low was $48.63 in 2009.

The average annual wholesale price in New England was $36.09 per megawatt hour last year, a 10-year low.

The lower wholesale prices don’t necessarily mean quick drops in monthly bills for consumers because utility regulators set retail rates in advance. Consumer electric bills also include the cost of distributing the power across the grid, which may offset fuel cost savings.

Share.

About Author

1 Comment

  1. So why dont our electric rates just fall low and lower at our home bills.. Due to some law that allows higher rates to stay higher to maximize Big Business profits at the expense of working stiffs who dread seeing the next bill esp in all electric areas.
    Sure NYS PSC and all you other over hacked and over paid bureaucratic slobs !