Saturday, March 19, 2011

Electric rates in NY skyrocketing... with an exception

The New York State Public Service Commission, which regulates utilities, recently published information about the average monthly rates for each of the electric providers in the state from 2001-2010 (available here). I decided to do a little analysis. I compared the average monthly residential rates of the providers in 2005 and 2010. Every single provider saw at least a double digit percent increase in that five year period... except for one.

Central Hudson: 31.8% increase from 2005 to 2010
ConEd NYC: 14.9% increase
ConEd Westchester: 18.6% increase
National Grid: 21.5% increase
Orange and Rockland Electric: 26.7% increase
Rochester Gas and Electric: 17.2% increase

This begs an important question. The industry tells us that rates are so high in New York because of the state's supposedly unfriendly regulatory environment. So how is it that NYSEG was able to offer its customers a significant decrease in rates in the last several years while every other electric provider was imposing significant increases?

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