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New York's ESCOs charged highest electric prices in nation

Staff writer ▼ | December 28, 2015
With federal data showing New York's energy service companies (ESCOs) charged the highest residential electric prices in the nation last year – and 14% more than New York's utility companies - AARP called on state regulators to hold a hearing into unfair pricing.
New York electricity
Empire State   Average residential electric bills were 60% above the national average
U.S. Energy Information Administration (EIA) data shows 2014 was no fluke; New York consumers paid at least 6.7% more to buy their electricity from ESCOs every year going back to 2008, and 5% more in 2007, the data shows.

On average, New Yorkers who used 300 kilowatt hours of electricity per month – typical for a New York City apartment-dweller – paid over $100 more last year if they bought from an ESCO instead of from their local utility company.

"ESCOs promise consumers a discount on their power but too often charge more than the local utility company," said Beth Finkel, State Director of AARP for New York State.

"They have the dubious distinction of charging the highest residential electric prices in the nation. AARP is calling on state regulators to investigate this outrage thoroughly."

New Yorkers' average residential electric bills (including both utility companies and ESCOs) were the highest in the continental United States last year and 60% above the national average - 20.07 cents per kilowatt hour vs. 12.52 cents.

The average residential electric price of 22.28 cents per kwh for New York's "restructured retail service providers" (ESCOs) was 51% higher than the 14.72 cent average in the 20 states with ESCOs, and 14% above the 19.52 cents per kwh average New York consumers paid to "full service providers" (utility companies), according to the EIA data.