New York ranks third in the nation for residential electricity prices, with costs reaching 29.93 cents per kilowatt-hour in May, according to a recent report by the Empire Center for Public Policy. This rate is 62% above the national average, significantly higher than many other states, including Florida and Texas.
Hawaii leads with prices at 52 cents per kilowatt-hour, and California follows at 33.25 cents per kilowatt-hour. New York's electricity prices have seen a notable increase, rising 12% from the previous year, which is double the national average rate of increase. The state has climbed in rankings from eighth highest in October and November to third highest by May.
Beyond electricity, New York's average residential natural gas prices are also above the national average, ranking 19th highest in the U.S. Experts point to several factors contributing to these high energy costs. Zilvinas Silenas, president of the Empire Center, stated that New York's energy policy is a significant driver, exacerbated by increased electricity demand. Gavin Donohue, president of the Independent Power Producers of New York State, identified high taxation as the primary culprit, with transmission, distribution costs, taxes, fees, and green energy mandates accounting for 70% of utility bills.
Compounding the issue, New York is not generating enough new energy capacity while simultaneously closing older power plants, such as the Indian Point nuclear facility, which previously supplied 25% of New York City's energy. John Howard, a former member of the state Public Service Commission, noted that high taxes, including gross receipts tax, franchise tax, sales tax, and a "systems benefit charge" for clean energy investments, contribute substantially to utility bills, with companies like Con Edison and National Grid able to pass these costs directly to consumers.
The elevated energy costs have become a central theme in the gubernatorial race between Republican Bruce Blakeman and incumbent Democrat Kathy Hochul. Blakeman has criticized Hochul's administration for approving numerous utility rate increases during her tenure. He has vowed to cut utility bills in half and repeal surcharges if elected.
Data from Con Edison and NYSEG indicates that average delivery charges for upstate ratepayers under Hochul have increased by 75% between 2022 and 2025, a rate higher than the increases seen during former Gov. Andrew Cuomo's term. ConEd's average rates saw a 25% increase in the same period.
In response to rising energy costs and potential voter backlash, Hochul's administration has taken steps to mitigate the financial burden on residents. The state budget includes $1 billion for utility rebate checks of $100 to $200, distributed based on 2024 income. Additionally, Hochul issued an executive order imposing a one-year freeze on the opening of new AI-driven data centers due to concerns about straining the power grid.
The Hochul campaign defended the governor's record, stating she is actively working to lower costs and support families, while characterizing Blakeman's proposals as detrimental to consumers. Blakeman, however, dismissed the rebate checks as a political maneuver to secure votes.