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New York, NY - 59% Higher Electricity Bills for New Yorkers Than Other City |
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Metropolitan area consumers paid 59.1% more for electricity and 34.2% more for natural gas than the U.S. city average last month, according to the U.S. Bureau of Labor Statistics.
For example, New Yorkers paid 21 cents a kilowatt hour in June for electricity, while the average of 87 urban areas around the country was 13 cents, bureau data show.
For natural gas, measured in therms, New Yorkers paid $1.42 per therm, while the average was $1.06.
Energy experts and utility company officials said the disparity is the norm, actually narrowing a bit from last year.
The relatively higher cost of fuel used by power generating plants, transmission and labor costs, and taxes are the reason for the disparities, they said.
"Power plants in most of the country use coal as fuel, while in New York State, we use more expensive natural gas and oil and only about 13% of generation comes from coal," said Ken Klapp, spokesman for the New York Independent System Operator, which manages the state power grid.
Sal Graven, spokesman for the New York State Energy Research and Development Authority, said power delivery costs are higher here because "we're remotely located from natural gas wells being drilled and you've got to deliver that gas to power plants and also to homes."
Other areas of the nation, like the Pacific Northwest and upstate New York, have access to cheap hydroelectric power, "while we don't," said Ed Dumas, spokesman for the Long Island Power Authority.
Chris Olert, spokesman for Con Edison, noted that despite the disparity, the June bills for typical New York City and Westchester residents were 6.2% lower than those of June '08.
"It was $92.57 last year and $86.85 this June," he said. "The big difference for us in this area is higher fuel costs for generation and taxes."
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Read Comments (7) — Post Yours »
1
Jul 23, 2009 at 07:37 PM Anonymous Says:
Why is anyone surprised. As the article notes, ConEd has among the highest purchased power costs of any utility (remember that the State forced it to sell its generating plants 10 years ago). Also, the costs of its primarily underground distribution system is double the cost of a conventional above ground network and NY taxes are twice the industry average.
2
Jul 23, 2009 at 07:12 PM Anonymous Says:
The reason this years June bill was lower was because the temperatures were significantly cooler! Con Ed is a major ripoff. Where else is the service so bad and the cost so high!
3
Jul 23, 2009 at 07:10 PM Anonymous Says:
Where is Felder?
4
Jul 23, 2009 at 08:03 PM Anonymous Says:
As part of the latest round of tax increases, the City and State raised the property and lots of others.. on the utilities. And, natch, everytime NYC grabs another hundred million from Con Ed, they pass it along to the consumers.
But it lets the gov't pretend that they haven't raised taxes on voters...
5
Jul 23, 2009 at 09:53 PM Fed Up Says:
I spoke to a Coned worker who told me he would not give up his job for anything else, cause the pay & benifits are great
AGAIN its the unions & government taxes which are the cause of all of the problems we are having
6
Jul 23, 2009 at 09:47 PM Anonymous Says:
Also, if you didn't know. As of Aug 1st, you will be taxed on the electric and gas bills in NYC. 4+ %. Thanks Mayor.
7
Jul 24, 2009 at 01:07 PM Raphael Kaufman Says:
“ The reason this years June bill was lower was because the temperatures were significantly cooler! Con Ed is a major ripoff. Where else is the service so bad and the cost so high! ”
I have worked in the power industry for almost forty years and everytime I hear a complaint like this one it still makes me mad. There are valid reasons for the increased cost of energy in New York City some of which are explained in the article. For people like you who think it's a "ripoff", try generating your own electricity.