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New Yorkers pay the third-highest residential electricity prices in the country \u2014 trailing only Hawaii and California, a shocking new report reveals.<\/p>\n
Frustration over New York\u2019s sky-high high energy costs has emerged as a top campaign issue <\/a>in the governor\u2019s race pitting Republican Bruce Blakeman against Democratic incumbent Kathy Hochul.<\/p>\n New York electricity rates are the third-highest in the US at 29.93 cents per kilowatt-hour, 62% above the national average, per a new report. Bloomberg via Getty Images<\/p>\n \u201cThird highest in the nation is not where New York should want to be on electricity prices,\u201d said Zilvinas Silenas, president of the Empire Center for Public Policy.<\/p>\n \u201cIf this is affordability, New Yorkers cannot afford it.\u201d<\/p>\n New York\u2019s residential electricity prices were a whopping 29.93 cents per kilowatt-hour in May, based on the latest federal data, the analysis by the Albany-based think tank found.<\/p>\n Hawaii came in at 52 cents per kilowatt-hour, and California at 33.25 cents per kilowatt-hour, the common billing unit for electrical energy supplied by a utility.<\/p>\n New York\u2019s prices were 62% higher than the national average, nearly double Florida\u2019s and more than 80% higher than Texas\u2019.<\/p>\n Electricity prices in the Empire State also rose 12% from a year earlier \u2014 twice the rate of increase for the US average.<\/p>\n And New York has jumped in the rankings \u2014 from 8th highest among states last October and November, to 6th highest in December to 4th in April and 3rd in May, according to the Empire Center.<\/p>\n The Empire Center for Public Policy released data that shows electricity prices in the Big Apple rose 12% compared to its numbers in 2025. Empire Center<\/p>\n Meanwhile, New York\u2019s average residential natural gas prices were 15% above the national average, and ranked 19th highest in the US, the analysis found.<\/p>\n \u201cNew York\u2019s energy policy is contributing to the higher costs we have warned about for years,\u201d said Silenas, adding increased electricity demand is also a factor.<\/p>\n Gavin Donohue, president of the Independent Power Producers of New York State said \u201cthe biggest culprit of high electricity rates in New York is high taxation.\u201d<\/p>\n Transmission and distribution costs, taxes and fees and green energy mandates combined account for 70% of utility bills, he said.<\/p>\n At the same time, New York is not producing enough new energy capacity while closing older oil, gas and nuclear power plants, Silenas said.<\/p>\n The Indian Point nuclear power plant <\/a>in Westchester County had provided 25% of New York City\u2019s energy before it closed in 2021.<\/p>\n One energy expert said New York\u2019s high-tax burden significantly contributes to the higher costs.<\/p>\n \u201cThe New York City property tax is <\/a>the big distortion on the Con Ed bill,\u201d said John Howard, a former member of the state Public Service Commission that regulates utilities.<\/p>\n Utility companies are also charged a gross receipts tax, a franchise tax and sales tax on commodities, and a \u201csystems benefit charge\u201d to promote solar and other clean energy investments, Howard noted.<\/p>\n Con Ed and National Grid are allowed to pass those costs on to customers.<\/p>\n Energy costs have emerged as a hot campaign issue in the governor\u2019s race, with Blakeman blaming Hochul\u2019s administration for approving 48 utility rate electric and gas hikes during her tenure, via the Public Service Commission. She appoints most of the PSC members who regulate the utility industry.<\/p>\n \u201cKathy Hochul\u2019s utility bills are killing us,\u201d Blakeman said.<\/p>\n \u201cWhen I am governor, I will cut utility bills in half, repeal Hochul\u2019s costly surcharges, and return $2.4 billion in unspent energy tax funds directly to ratepayers,\u201d he vowed.<\/p>\n According to yearly average billing data from Con Edison and NYSEG, Hochul has presided over larger rate increases <\/a>compared with her predecessor, former Gov. Andrew Cuomo.<\/p>\n Between Hochul\u2019s first full year in office in 2022 and 2025, the average NYSEG delivery charge \u2013 the part of utility rates subject to the state\u2019s approval \u2013 for upstate ratepayers spiked an eye-watering 75%.<\/p>\n The emerging electricity costs have become a focal point in the 2026 governor\u2019s race between Republican Bruce Blakeman and Democratic incumbent Gov. Kathy Hochul. Christopher Sadowski for NY Post<\/p>\n ConEd\u2019s average rates for the same period increased 25%.<\/p>\n Based on the same data, delivery rates only increased 25% for NYSEG and 9% for ConEd between 2016 and 2021, the bulk of Cuomo\u2019s term.<\/p>\n Hochul, seeking re-election to a second term in November, pivoted earlier this year, forcing the legislature to delay implementation of mandates in the state\u2019s green energy law \u2014 the Climate Leadership and Community Protection Act of 2019 \u2014 over concerns of rising costs<\/a>.<\/p>\n The state will also be sending \u201cutility rebate\u201d checks out this fall, a clear signal that Hochul and her fellow Dems in the state Legislature are worried about backlash at the ballot box over massively increasing energy costs.<\/p>\n The state budget approved in May tapped $1 billion from the treasury to redistribute as $100 to $200 rebate checks ostensibly meant to help defray burdensome state utility costs.<\/p>\n The checks, however, will be based on residents\u2019 2024 income, regardless of whether someone actually paid utility bills.<\/p>\n