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For Immediate Release: 5/15/2025 Rory M. Christian, Chair Contact:
James Denn | James.Denn@dps.ny.gov | (518) 474-7080 25061/25-E-0239 May 15, 2025
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Adequate Summer Supply of Electricity Expected |
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Energy Efficiency Initiatives Key to Manage Peak Demand for Electricity Commission Continues Review of New Extreme Heat Protections
ALBANY — The New York State Public Service Commission (Commission) today announced that New York’s electric grid and its electric utilities are prepared for increased summer demand for electricity. New York is expected to have a ready supply of electricity during the summer peak due in large part to significant energy efficiency investments that have been made.
“New York is expected to have an ample supply of energy this year, and that is good news for residential and business customers,” said Commission Chair Rory M. Christian. “Meanwhile, we will continue making investments in energy efficiency and the clean-energy grid that will help us all combat climate change, meet demand on the system, and further stabilize energy prices long term.”
In the summer of 2013, New York State set a record peak demand of 33,955 megawatts (MW). Peak demand this summer is forecast to be 31,471 MW, higher than last year’s actual peak of 28,990 MW.
The installed generating capacity for 2025 totals 37,682 MW, combining the installed generation capacity with other resources provides New York with a total of 40,938 MW worth of capacity resources for 2025, well above the expected need.
The peak forecasts for the coming years see a steady increase overall due to electrification and future large loads. However, by 2035, the combined effect of the energy efficiency and distributed generation are projected to help lower the peak demand by 5,600 MW. A 2,000 MW decrease in peak demand is the equivalent of the electricity generated by several large power plants, enough to supply approximately 1.75 million average-size homes. Reducing the amount of electricity that’s consumed daily and during the hottest days of summer provides significant benefits to consumers and the environment.
To further help curb peak energy system demands, each of the utilities have load relief programs in which customers are compensated for providing load reductions when called upon. Currently there are more than 1,575 MWs in these programs for 2025 to further facilitate peak demand reductions during the summer’s hottest days. The Commission and other State agencies have very active programs designed to reduce the impact of high utility bills on low-income customers.
Additionally, the price for electricity paid by full-service residential customers on average is expected to be higher than a year ago, depending on the customer’s location, demand and actual market prices. The Commission also discussed the extreme heat event protections the utilities have adopted over recent years.
The statewide average supply costs for full service residential customers this summer (June to September) is expected to be approximately $231, up nearly 6.5 percent from $217 a year ago. This increase in the 2025 supply bill estimates as compared to 2024 reflects the expected changes in market prices as well as the impact from the utilities’ hedging programs. Supply prices rise and fall all the time based on changing market conditions, and they are expected to be higher this year due to expected increased gas market prices compared to last year. Electricity follows gas because it is the primary fuel used to generate electricity.
Electricity prices will be comparable to what they were in 2022, even excluding inflationary increases over the past three years. The cost of electricity is determined largely by unregulated supply and demand in the energy and capacity markets. Depending on where a customer is located in the state, what utility they are served by, their actual use, and actual market prices, the commodity portion of their summer bill will vary, and could be higher or lower than last summer.
Earlier this year, the Commission instituted a proceeding to examine procedures and programs regarding customer protections during extreme heat events at all major New York electric utilities and major private water utilities. The purpose of the proceeding is to establish a comprehensive statewide policy regarding extreme heat customer protections for electric and larger water utilities. The ongoing proceeding will assess the adequacy of the existing protections for major electric and water utility customers during extreme heat events in view of policy objectives and to standardize them to reflect best practices.
Today’s report may be obtained by going to the Commission Documents section of the Commission’s Web site at www.dps.ny.gov and entering Case Number 25-E-0239 in the input box labeled "Search for Case/Matter Number". Many libraries offer free Internet access. Commission documents may also be obtained from the Commission’s Files Office, 14th floor, Three Empire State Plaza, Albany, NY 12223 (518-474-2500). If you have difficulty understanding English, please call us at 1-800-342-3377 for free language assistance services regarding this press release.
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