ALBANY — The New York State Public Service Commission (Commission) today announced that the cost for electricity is expected to remain near historically-low levels this summer. In addition, peak power demand forecasts continue to fall thanks in large part to Governor Andrew M. Cuomo’s Reforming the Energy Vision (REV) strategy. The decline in the amount of electricity consumed during the year helps lower costs for consumers and helps save the environment by reducing air pollution from power plants.

 

“The summer outlook in terms of adequate supply and lower electricity prices is very good news for residential and business customers,” said Commission Chair John B. Rhodes. “Governor Cuomo’s REV initiative to create a cleaner, more resilient, and affordable energy system continues to yield dividends including lower consumer costs.”

 

There are many factors that are helping to keep prices down, including Commission-ordered programs to lower demand, requiring utilities to use policies to mitigate volatility in prices, all of which are helping to ensure price stability for consumers.

 

This summer’s energy prices are expected to be between 9 and 12 percent lower than the five-year average. Additionally, this year’s price forecasts are down from last year’s between 5 percent and14 percent across the State, which means that consumers could potentially see lower bills this summer compared to last summer if the weather is comparable.

 

The energy price forecasts are based on current projections from the New York Mercantile Exchange, although actual prices can vary from these forecasts due to a number of unpredictable factors, such as weather and overall demand for electricity. Financial hedging by the state’s regulated utilities will also reduce any price increases this summer and this sound financial planning will also protect against unforeseen and unexpected spikes in supply costs.

 

There are sufficient generating capacity resources to supply expected customer demands and all of the State’s electric utilities are prepared to serve those expected customer demands. Typically, the forecast for this demand (known as the peak load) has been in the range of 33,300 megawatts (MW), compared to the winter peak of about 25,000 MW. Peak load this summer is expected to be 32,904 MW – down slightly from last year. Peak load continues to fall due to the energy reforms under REV.

In the summer of 2013, New York set an actual record peak load of 33,955 MW. Thanks to REV and other improvements, NYISO’s current forecast for 2025 is about 3,000 MW less than its 2015 forecast. A 3,000 MW decrease in peak demand is the equivalent of the electricity generated by several large power plants or enough to supply approximately 2.5 million average size homes.

 

Reforming the Energy Vision is Governor Andrew M. Cuomo's strategy to lead on climate change and grow New York's economy. REV is building a cleaner, more resilient and affordable energy system for all New Yorkers by stimulating investment in clean technologies like solar, wind, and energy efficiency and requiring 50 percent of the state's electricity needs from renewable energy by 2030. Already, REV has driven growth of more than 1,000 percent in the statewide solar market, improved energy affordability for 1.65 million low-income customers, and created thousands of jobs in manufacturing, engineering, and other clean tech sectors. REV is ensuring New York reduces statewide greenhouse gas emissions 40 percent by 2030 and achieves the internationally recognized target of reducing emissions 80 percent by 2050. To learn more about REV, including the Governor's $5 billion investment in clean energy technology and innovation, visit rev.ny.gov, follow us on Twitter, Facebook, and LinkedIn.