Compare Electricity Rates in New York
New York was one of the first states to deregulate its energy markets, which means you can choose your electricity and gas providers. Energy prices can vary widely depending on your location in NY state and your provider. However, the Energy Information Administration (EIA) reports the following average energy prices for the Empire State:
| Energy Service | NY Average Residential Rates | NY Average Commercial Rates |
| Electricity | 22.52 cents/kWh | 16.66 cents/kWh |
| Natural Gas | $14.69 per thousand cubic feet | $9.81 per thousand cubic feet |
*Latest data available from the US EIA as of March 2024.
For comparison, here are the US average energy prices:
| Energy Service | US Average Residential Rates | US Average Commercial Rates |
| Electricity | 15.73 cents/kWh | 12.39 cents/kWh |
| Natural Gas | $12.94 per thousand cubic feet | $9.83 per thousand cubic feet |
*Latest data available from the US EIA as of March 2024.
NYC Electricity Sources
New York generates 47% of its electricity with natural gas power plants. Many of these power plants have dual-fuel capacity to improve their reliability. If natural gas is scarce during the winter months, they can switch over to petroleum products.
Hydroelectricity and nuclear energy are also among the top NYC electricity sources, each representing around 21% of production. Together, these two energy sources and natural gas account for around 90% of local generation. The remaining 10% of production comes mostly from solar, wind and biomass power plants. Coal-fired generation has been completely eliminated within New York – the last power station closed in 2020.
- The commercial sector accounts for around 50% of electricity usage in New York, while the residential sector represents over 33%.
- The industrial sector represents around 10% of electricity usage while the rest goes to the transportation sector.
New York is one of the most energy efficient states, with the 2nd lowest energy consumption per capita after Rhode Island. New York also has the most efficient transportation sector among all states, which can be attributed to the widespread use of mass transportation.
Energy Deregulation in New York
New York was one of the first states to deregulate its energy sector: electricity was deregulated in 1997, while natural gas was deregulated in 1999. This was the culmination of a process that had started three decades earlier. The US northeast and parts of Canada suffered a massive blackout on November 9, 1965, which was blamed on the poor reliability of the power grid.Ā
Electric companies in the region had to improve their grid infrastructure, but this led to a drastic increase in energy rates. By the 1990s, New York had some of the highest electric prices in the US. There was major public pressure to deregulate the power sector, breaking down traditional energy monopolies. The NY Public Service Commission passed the āCompetitive Opportunities Caseā in 1996, which led to deregulation within the next few years.
- Traditional utility companies continue to exist in deregulated energy markets, but in most cases their role is reduced to distribution services.
- Utility companies deliver electricity and gas from your provider of choice, while charging you a fee for using their power grids and gas piping networks.
- Electric utility companies in New York State can also operate as energy suppliers when customers donāt choose a provider directly. However, they donāt have a monopoly over the energy supply like a traditional utility.
You can choose your electricity and gas providers, but your distribution utility is determined by your geographic location. Having a separate distribution system for each provider would be unfeasible, while making energy services much more expensive. For example, in a region with 20 electricity providers, you would need 20 parallel power grids. However, this is not necessary because there is a single grid company that charges a distribution fee.
Energy choice is available for homes and businesses alike in New York State, covering both electricity and natural gas. There are no more than 200 competitive energy providers in New York. In this article we focus on commercial electricity plans for businesses.
Electric Utility Companies in New York
New York has seven electric utility companies that cover most of the state territory:
- National Grid
- Rochester Gas & Electric (RG&E)
- New York State Electric and Gas (NYSEG)
- Central Hudson Gas & Electric
- Orange & Rockland Utilities
- Long Island Power Authority (LIPA) – power grid managed by PSEG
- Consolidated Edison (ConEd)
Here is a map showing the service territory of each utility company:
https://data.ny.gov/Energy-Environment/NYS-Electric-Utility-Service-Territories-Map/q5m9-rahr
You can also find several municipal utilities with smaller territories in New York State. These companies still operate as traditional regulated utilities with no provider choice.
The New York state government has an online portal called Power to Choose, where you can compare the energy providers available in your area. The electric utility companies listed above also have a directory of the providers available in their service area:
*NOTE: Electric choice is very limited in the Long Island Power Authority area, with only two providers to choose from. You can find more options in the other six service territories.
Types of Electricity Plans in New York
Electricity plans for businesses can be classified into several types, depending on their terms and conditions:
- Fixed-rate plans: You get a fixed electric tariff for the entire contract length, which is typically from 6 to 60 months. You are protected from price hikes but there is a financial penalty for early termination, which can be very high.
- Variable-rate plans: Your electric tariff can be increased or decreased every month, at the discretion of your provider and depending on energy market conditions. Although you are exposed to price spikes, you are free to switch your energy plan at any time.
- Green energy plans: Some energy providers have plans where 100% of the electricity comes from renewable sources. These energy plans are common in New York, since the state generates 30% of its electricity from renewables.
You should always read the fine print before choosing an electricity plan for your business, even if the provider advertises a low kWh price. Many plans have hidden fees and complex tariff calculations that are not evident – your company can end up paying a very high monthly bill.
Another general recommendation is never accepting offers from electricity providers who donāt appear on the official NYS Power to Choose website. If you are offered electricity plans from a company who is not approved as an energy provider in New York, they are probably scams.
What Happens if I Donāt Choose an Electricity Plan in New York?
New York businesses are not forced to choose an electricity plan, but doing so is strongly advised. If you donāt choose an energy provider, you are assigned to a default tariff from your utility company, which is called the āPrice to Compareā or PTC. The default tariff is higher than many options found in the market – you miss out on potential savings by not choosing a plan.
Here you can check the āPrice to Compareā from the seven electric utilities in New York State:
In general, your business can save on electricity bills if you find a provider with prices below the standard tariff charged by the local utility. For example, if the local utility charges 22 cents/kWh and you find a plan that charges 18 cents/kWh, you are saving 4 cents/kWh. If your company uses 10,000 kWh per month, you would be saving $400/month and $4,800/year.Ā
When comparing commercial electric rates in New York, make sure you look for tariffs below the default price charged by the local utility company.
Commercial Energy Incentives in New York
New York is actively working to make the local electricity sector greener, with two ambitious goals established in the NY Clean Energy Standard (CES):
- Reaching 70% renewable generation by 2030
- Having a zero-emissions power grid by 2040
As you might expect, NY has multiple incentive programs for energy efficiency measures and renewable energy systems, covering both homes and businesses. You can check the full list at the Database of State Incentives for Renewables and Efficiency (DSIRE), but here are some of the largest programs for commercial energy users:
| Energy Incentive Program | Description |
| Value of Distributed Energy Resources (VDER) | The VDER is the NY state net metering program. Electricity consumers with solar panels and other renewable energy systems can export their surplus production to the grid, in exchange for power bill credits. |
| NYSERDA NY-Sun Megawatt Block Program | NYSERDA offers cash rebates for solar power systems, which are determined by their location and installed capacity. The program funds available for Long Island have been fully claimed as of 2024, but incentives are still available in the rest of the state (NYC and Upstate NY). |
| Solar Sales Tax Exemption | Solar energy systems are exempt from the state sales tax, and the benefit applies for both homes and businesses. |
| PSEG Long Island Commercial Energy Efficiency Rebate Program | PSEG-LI offers a wide range of rebates for businesses who invest in energy efficiency upgrades. The list of eligible measures includes lighting, HVAC and refrigeration upgrades. |
| National Grid Energy Saving Programs | National Grid also offers rebates for their business customers, covering measures like efficient lighting and HVAC upgrades. |
| Con Edison Commercial and Industrial Energy Efficiency Program | Con Edison has one of the largest energy efficiency programs in the state, covering a wide range of energy efficiency measures and custom energy-saving projects in buildings. |
| Commercial PACE Financing | Property Assessed Clean Energy (PACE) is a financing option where the loan is paid over time along with property taxes. PACE loans often have low interest rates and long repayment periods. |
New York businesses can minimize their electricity costs by choosing an energy plan with low rates, while taking advantage of the multiple energy incentives found in the state. New York ranks among the states with the most incentives for energy efficiency and renewable energy.Ā
The table above only shows some of the largest energy incentive programs in NY, but you can check the full list at the DSIRE website:
Quick Facts About Energy Choice in New York
- NY First to Deregulate: New York was one of the first states in the US to deregulate their electricity and gas.
- Member of the Regional Greenhouse Gas Initiative:Ā As a member of the RGGI, New York and the other members are doing what they can to help reduce greenhouse gas emissionsĀ in their area of responsibility.
- Renewable energy: The state requires all utility providers to produce a portion of the energy they sell from renewable sources.
- Not required to mix fuel with renewable sources. Other states require their gasoline supply to be combined with a renewable fuel. New York does not impose this rule, and car owners are free to use whatever gasoline they want.
- Energy Efficiency standards. Newly built buildings and residential homes must meet the stateās energy efficiency standards to ensure that the new establishments will use power effectively and not waste a drop of it.
- Some of the highest energy rates in the country. The State of New York has one of the highest energy prices in the country. The state rates on energy are 58 percent higher compared to the countryās average.
Map of US Energy Deregulation
New York is one of 26 US StatesĀ that have some form of energy deregulation whether it be electricity, natural gas or both. Use our interactive map to get more information on deregulated energy states in America.