New York Public Service Commission forecasts lower energy prices this summer

The New York Public Service Commission (PSC) anticipates that energy prices in the state will remain near historically low levels over the summer in response to the state’s Reforming the Energy Vision (REV) strategy, programs aiming to reduce energy demand and utilities using policies that prevent price volatility.

The New York PSC anticipates that energy prices will be 9-12 percent lower than the five year average and 5-14 percent less than last summer’s prices, potentially resulting in lower energy bills for customers. The price forecast is based on projections from the New York Mercantile Exchange.

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

The REV strategy aims to promote investments in solar, wind and other clean energy technologies by requiring that 50 percent of the state’s electricity be generated by renewable sources by 2030. The strategy has already propelled more than 1,000 percent growth in the state’s solar market, the PSC said.

The REV strategy and additional initiatives are expected to reduce customer demand, or peak load, in 2025 to levels that would be about 3,000 megawatts (MW) less than peak load in 2015. The decrease would provide enough energy to supply approximately 2.5 million average homes in the state.

New York PSC noted that peak load has historically totaled about 33,300 MW in the summer and 25,000 MW in the winter. Peak load this summer is expected to reach 32,904 MW.