State residential rates reach nearly 30 cents per kilowatt-hour as Warwick-area households continue to contend with high energy costs
By Myrek Zastavnyi
New Yorkers are paying some of the highest residential electricity prices in the country, with the state’s average rate climbing to third highest in the nation this spring, according to newly released federal energy data.
In May, the average residential electricity price in New York reached 29.93 cents per kilowatt-hour, trailing only Hawaii and California, according to data from the U.S. Energy Information Administration analyzed by the Albany-based Empire Center for Public Policy. The EIA released its May figures on July 23.
The figure represents a roughly 12 percent increase from May 2025, about twice the rate of increase nationally, according to the Empire Center.
“Third highest in the nation is not where New York should want to be on electricity prices,” Empire Center President Zilvinas Silenas said in releasing the organization’s latest Energy Data Bulletin. “If this is affordability, New Yorkers cannot afford it.”
The Empire Center argues that state energy policies are contributing to rising costs. That assessment represents the organization’s policy position; electricity bills are influenced by a combination of factors, including wholesale energy prices, fuel costs, transmission and distribution expenses, infrastructure investments, weather, demand and state-regulated utility charges.
The federal data nevertheless demonstrate the size of the gap between New York and much of the country.
At 29.93 cents per kilowatt-hour, New York’s May residential price was approximately 62 percent above the national average. Neighboring New Jersey averaged 23.27 cents per kWh, while Pennsylvania averaged 21.55 cents.
New York residential electricity prices have also been moving away from the national average over the longer term. An earlier Empire Center analysis of EIA data found that the state’s average electricity price had increased approximately 70 percent since 2019, roughly twice the rate of increase nationally.
What It Means in Warwick
For Warwick-area residents, the statewide average should not be confused with the exact rate appearing on an individual electric bill.
Most of the Warwick area is served by Orange & Rockland Utilities, and a customer’s final bill includes separate electricity supply, delivery and tax charges. Supply prices fluctuate with wholesale energy markets, while delivery rates pay for the utility’s distribution system and are regulated by the New York State Public Service Commission.
For the 2026 summer season, O&R forecast that a typical residential customer using 550 kilowatt-hours per month would pay approximately $156.32, including electricity supply and delivery. That represents a projected increase of 0.8 percent from last summer, according to the utility.
Under O&R’s standard New York residential rate, customers also pay a monthly customer charge, while delivery charges vary depending on consumption and season. Electricity supply is an additional charge and changes with market conditions.
That distinction is important: the EIA’s 29.93-cent statewide figure is not simply a utility’s posted electricity rate. The federal agency calculates average residential prices by dividing utilities’ residential electricity revenues by the amount of electricity sold, making the figure a useful measure for comparing what consumers are actually paying across states.
Natural Gas Also Above National Average
Electricity isn’t the only household energy expense running above the national norm.
According to the Empire Center’s analysis, New York’s average residential natural gas price was approximately 15 percent higher than the national average, ranking the state 19th highest in the country.
The combination adds another affordability concern for households already facing higher costs for housing, food, insurance and other necessities.
Silenas contends New York’s energy strategy deserves some of the blame.
“New York’s energy policy is contributing to the higher costs we have warned about for years,” he said.
New York officials and clean-energy advocates have argued, however, that investments in renewable generation, transmission and grid modernization are necessary to improve reliability, reduce dependence on fossil fuels and meet the state’s long-term climate goals. Those investments can carry significant upfront costs, while supporters contend they can produce longer-term economic and environmental benefits.
Whatever the debate over the causes, the latest federal numbers leave little disagreement about the immediate result for consumers: electricity in New York is expensive, and in May, residents were paying more for it than households in 47 other states.
