New York’s “low” electricity prices study overlook key details

Posted: July 20, 2018

A recent study showed that New York State’s home electricity bills are among the lowest in the country. According to personal finance website WalletHub, New York ranked 41 out of 50 states for total energy costs and 49th in electricity consumption per customer.

While these numbers might look great to the non-New Yorker, those of us who live in the Empire State are struggling to pay these “low” rates!

What these studies don’t show is the enormous tax burden added to New Yorkers’ electricity bills. According to a study New York AREA conducted in 2015, New Yorkers pay an average of $1.6 billion annually in electricity taxes. That’s $75 every year for every man, woman and child in the state.

These electricity taxes are a cocktail of various fees and surcharges, including the Gross Receipts Tax (GRT), the “temporary” 18-a surcharge, and other off budget charges. All of these taxes account for about 25 percent of the average utility bill.

These “low cost” energy rates mean nothing to New Yorkers if their monthly electricity bill is strapped with unnecessary surcharges and fees. Our public officials should take action to remove unnecessary fees and lower other electricity taxes to ensure New Yorkers across the state have affordable power.

Check out the link below to learn more about New York’s electricity taxes:

The Hidden Taxes in New Yorkers’ Electricity Bills