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Big jump expected in New York utility rates
If they weren't high enough already, more hikes could be on the way for electricity costs in New York State, with officials saying customers can expect to pay as much as 12 percent more on utility bills this summer.
NEW YORK - New York is staring down the barrel of yet another hot and humid summer, which means another year of running air conditioners to stay comfortable. But with the cost of energy continuing to rise, many New Yorkers may be in for a shock when their bills come due.
Con Edison, which provides energy for roughly 10 million people living in New York City and Westchester County has estimated that power bills this summer will be a whopping 11-12% higher than in 2021. In Westchester County, summer bills for residential customers are projected to be about 15% higher.
Con Edison confirmed to FOX 5 NY that that lines up with their own predictions as well, but some experts say a 12% increase might be being too conservative.
"I actually believe that prices are likely to go up more than what the state predicts," said Nicholas Economides, a professor of economics at New York University.
Economides told FOX 5 NY that he thinks prices could jump 20% because ⅔ of the state gets its electricity from natural gas, and natural gas is now 2 ½ times higher compared to a year ago.
Hofstra economics professor Martin Melkonian says it all boils down to what is known as supply-side inflation.
"It's not that we're demanding too much," Melkonian said. "It's that we're unable to supply sufficiently the cost of materials. Everything is going up, most importantly, for electricity."
Last year, a New York City residential customer who was using 350 kwh per month from June to September had an average monthly bill of $104.05, according to ConEd. Meanwhile, a residential customer in Westchester County using 500 kwh per month during the same period had an average monthly bill of $133.02.
The U.S. Energy Information Administration (EIA) estimated that on average there will be an increase of 3.9% in the price of electricity for U.S. households this summer. For the entire summer, the agency projects that the average household is expected to spend 0.9% more for electricity compared to summer 2021, according to the EIA.