New Yorkers Face Rising Electric Bills During ‘Especially Brutal’ Summer: What To Know

Summer’s high temperatures often bring electric bills to match — and this year New Yorkers are feeling the burn.

The air conditioners keeping you cool guzzle electricity, which tends to cost more as demand spikes. Heat waves like the one New York City experienced in early July drive that demand and make your ACs work harder. The more energy you use, the more you pay.

“When you really feel like the AC is doubling your electricity bill, that’s what’s happening,” said Andrew Wang, CEO of the New York-based company Every Electric, which runs a program providing customers with batteries to reduce strain on the grid. More than 75% of city households’ electricity use during the heat wave around July 4th came from air conditioning, Every Electric found in a recent analysis.

That means utility Con Edison’s 3.6 million customers in the five boroughs and Westchester County might have gotten hit with hefty electric bills, or could be bracing for some. Another heat wave is expected this week.

The state Department of Public Service has warned customers across New York they may face bigger energy bills this summer, but a high bill can still cause sticker shock.

“This summer has been especially brutal for all New Yorkers. People oftentimes don’t see the cost of a heat wave until a few weeks later when their bill comes, which is part of why the bill itself can feel like a surprise,” said Ian Donaldson, communications and policy manager at the Public Utility Law Project of New York, a nonprofit advocacy group.

The size of your electric bill depends on several factors, including what kind of AC you have, how big your apartment is and even what direction it faces. Overall demand on the grid also plays a role in consumers’ monthly energy costs.

Here’s our guide for understanding what you’re paying for and how to mitigate your costs.

Reading Your Con Edison Bill — And Saving on Costs

Your electric bill is divided into two parts: supply and delivery.

Supply means the actual electricity you’re using, which you pay for per kilowatt-hour. Con Ed does not generate the electricity, and charges customers for the cost of electricity without a markup. 

Fossil fuels generate most of the city’s electricity. The majority of the supply comes from natural gas, a global commodity whose price fluctuates based on dynamic market forces. As local generators fire to meet our air conditioning needs on a sweltering summer day, the cost of electricity generally rises.

Customers can choose to source their energy from third-party providers, known as energy service companies, or ESCOs. More than 300,000 of Con Ed’s residential customers go this route, but the utility still delivers the electricity, no matter where it comes from. Con Ed is a monopoly in the city and oversees the system that distributes electricity.

“You can see savings by shopping around and getting a different rate for your electricity,” said Heather Nolen, director of technical services at the Association for Energy Affordability, a Bronx-based nonprofit. “It’s worth people looking to see what they can get for rates or deals. … It helps lower a portion of your bill.”

If you opt for third-party energy, be sure you understand the terms of the agreement with the ESCO, including whether the rates are set or fluctuate. Clean Energy Hubs, which local organizations run across New York in partnership with the state’s Energy Research and Development Authority, can help you make sense of those terms and provide guidance. (AEA helps run the hub for The Bronx and Brooklyn.)

Con Ed charges the delivery portion of your bill to maintain the wires, substations and other equipment that transports electricity to customers. Under state law, the investor-owned company can make a profit on its investments in the system. The state Public Service Commission must approve the rates Con Ed wants to charge customers.

To save on your energy bill, you can enroll in a community solar program, which allows renters and homeowners to take advantage of solar power even if their buildings lack panels. Customers who subscribe to solar projects receive credits on their bills.

You can also participate in a “smart usage” rewards program authorized by Con Ed that offers incentives to reduce your energy use at times of high demand. These programs can take the form of apps alerting you when to conserve energy, or a battery from Every Electric.

What You Can Do To Conserve Energy and Stay Comfortable

First, take a look at your air conditioning unit.

Many New Yorkers have window units, while others have mini-splits. The AC’s age, size and installation matter for your wallet.

“All of those factors will go into why one has lower bills than the other,” Nolen of AEA said.

The way a window AC or mini-split is installed also has an impact on your electric usage and bill. Mini-splits are usually installed by professionals, but residents often install window units.

“The best thing with dealing with high bills in the summertime is looking at your air conditioner unit and making sure it’s installed properly,” Nolen said. “How tightly is your window able to close down on top of your AC? Can you see daylight around your air conditioner unit, and can you fill that in? You’ve got the little accordion pieces on the side. How well air-sealed is that?”

You can add foam weather stripping around your window AC to improve your home’s ability to retain cool air.

If you’re in the market for a new AC, it’s crucial to consider energy efficiency. Newer models tend to be more efficient than “the old window-shakers,” as Wang from Every Electric put it.

Nolen recommended Energy Star-rated appliances, which have high efficiency standards, and she said to ensure the British Thermal Unit size of the AC makes sense for the room’s size. BTUs indicate the machine’s cooling capacity. Too few for a big room means the unit won’t cool the room down well enough.

Nolen also advised cleaning your AC’s filter at least once a month. 

There are two main public programs that provide ACs for free to eligible New Yorkers, but both are already closed to new applicants this summer due to funding running out: the federally funded Home Energy Assistance Program, which closed June 5, and the Essential Plan Cooling Program, which closed July 6.

PULP, the advocacy group, recommended supplementing AC use with a fan. If you’ve got a ceiling fan, it should spin counterclockwise during the warmer months so it pushes cooler air down.

Make Some Changes Around Your Home

If you have large windows, invest in blackout curtains and make sure they stay drawn during the sunniest parts of the day.

That’s what Tyler Crull, who moved to Astoria from South Carolina in the spring, said he did after hearing horror stories about sky-high summer electric bills.

The two-bedroom corner apartment he shares with his fiancée has wall-to-wall windows and is on the sixth floor. Their bedroom can become sauna-like by midday, he said.

“The sun rises and blasts it with sun, and then it sets and blasts it with sun from the other corner,” said Crull, 36. But the curtains made a huge difference for comfort and for insulation.

“Even if I leave the AC off in the room, it’s like 74 degrees, tops. Throughout the day, it’s nothing,” he said. 

His most recent Con Ed bill — which covers his stove, in-unit laundry and other appliances — was about $250, down from about $310 the previous month.

Nolen said the Clean Energy Hubs can provide LED lightbulbs and smart power strips, as well as give personalized tips for reducing your electricity bill. 

Unplugging appliances like toasters and computers when they’re not in use can prevent them from pulling energy, too.

The New York Energy Advisor tool helps connect households with programs that provide financial assistance, energy efficiency upgrades and other benefits.

Financial Help With Electric Bills

If you meet the criteria — having a low enough income or being enrolled in certain government assistance programs — you can get monthly discounts on your electric bills through the utility-run Energy Affordability Program and Enhanced Energy Affordability Program.

If you fall behind on bills, reach out to Con Ed to hear about payment plan options, which let you pay the balance over time.

Remember: State regulations bar Con Ed from terminating service for nonpayment in times of extreme heat.

Lastly, New Yorkers can expect up to $200 checks this year to help offset energy bills through a $1 billion program approved by Gov. Kathy Hochul and state lawmakers.

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