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Electricity Rates for NY Businesses Will be Higher This Year, Says PSC

May 22, 2013

New York’s Public Service Commission (PSC) received an update from the Department of Public Service regarding summer preparedness in terms of electricity reliability and price volatility for residential, commercial, and industrial customers that receive electric supply from public utilities in New York.

Based on projections from the New York Mercantile Exchange (NYMEX) data, electricity rates are expected to be somewhat higher this summer due to the increased costs of purchasing electricity in the region.

Residential customers are not likely to be as affected as businesses, but industrial and commercial businesses can expect to see costs more in line with those in 2010 and 2011. Rates for businesses will of course vary by weather conditions, economic conditions, and fluctuations in expected demand across the board this summer.

Businesses that have not switched to a retail electricity provider should do so now in order to avoid higher rates. To switch to a retail electricity provider for electric supply, businesses must reach out to these providers and negotiate rates. Several online comparison websites provide this service for free (fill out the Business Electricity form on our partner’s website and we’ll start negotiating lower electric rates for you).

Adequate Reliability Predicted for Summer Electric Service

There is little concern that NY’s utilities will experience a shortage in electric supply. According to the New York Independent System Operator (NYISO), there are adequate generation and demand-side resources to provide necessary supplies of energy and reserves to meet demand.

Especially with the utility giant, Consolidated Edison, the PSC has taken extensive measures over the past few years to ensure that adequate reliability in electric supply service is being met. These initiatives include aiding the utilities in providing demand response programs for large energy users, approving financial incentives for large energy users to reduce load during peak times, and requiring utilities to analyze load studies to determine when and where potential issues may occur in the coming months.

In sum, businesses should take into account their electricity bills from the summers of 2010 and 2011 when adjusting their financial planning for the summer. Businesses that switch to a retail electricity provider are likely to avoid these increases in costs.