Historically Low Electricity Prices Forecasted for New York This Summer

The New York State Public Service Commission predicts that the cost for electricity supply this summer will remain near historically-low levels thanks to a decline in the amount of electricity consumed, according to a May 16 press release.

Energy price forecasts based on projections from the New York Mercantile Exchange are down between 1 to 3 percent across the state, which could translate to lower supply bills for consumers if the weather is comparable with last year.

According to the regulator, there is sufficient generation capacity to fulfill customer demand, which is expected to peak at 32,382 megawatts, down slightly from last year. Typically, the forecast for demand in the hot summer months has been in the range of 33,300 megawatts, while the winter peak is about 25,000 megawatts. The all-time peak record for New York was set in the summer of 2013 with an actual peak load of 33,955 megawatts.

The regulator attributes the lower power demand to the state’s Reforming the Energy Vision (REV) strategy, Governor Andrew Cuomo’s landmark plan to transform the utility regulatory structure by integrating greater levels of distributed resources and empowering customers with energy management options. Thanks to REV and other improvements the New York Independent System Operator Inc.’s current peak forecast for 2026 is about 2,000 megawatts less than 2016.

Meanwhile, the Electric Reliability Council of Texas released earlier this month its seasonal assessment report for the summer, which forecasts a peak demand of about 74,850 megawatts, 1,300 megawatts higher than the all-time record set last July and which could threaten system reliability.