New York ranks third highest in residential electricity prices in US

By the Editorial Team · Friday, August 7, 2026

New York now has the third highest residential electricity prices in the U.S., with rates reaching 29.93 cents per kilowatt-hour in May, marking a 12% increase over the past year. This surge has become a focal point in the New York gubernatorial race, with candidates debating the impact of state energy policies and promising contrasting approaches to reduce utility costs.

New York ranks third highest among U.S. states in residential electricity prices, trailing only Hawaii and California, according to a recent analysis of federal data by the Albany-based Empire Center for Public Policy. In May, the average residential electricity rate in New York reached 29.93 cents per kilowatt-hour, significantly above the national average and marking a steep increase from the previous year.

Hawaii tops the list with rates around 52 cents per kilowatt-hour, followed by California at approximately 33.25 cents. New York's electricity costs are about 62% higher than the national average, nearly double those in Florida, and over 80% more than prices in Texas. The state has seen a steady climb in rankings over the past year, moving from eighth highest last fall to third highest in May. The Empire Center reported a 12% increase in New York’s residential electricity prices from May 2025 to May 2026, roughly twice the national rate of increase.

Natural gas prices for residential customers in New York also remain elevated, averaging 15% above the national level. Energy experts attribute the rise in electricity costs to a combination of policy decisions and external factors. Zilvinas Silenas, president of the Empire Center, pointed to New York’s energy policies as a key contributor, alongside growing electricity demand statewide. John Howard, a former member of the state Public Service Commission (PSC), cited New York City’s property taxes as a significant factor affecting utility bills, describing them as a “big distortion” on Consolidated Edison’s charges.

The surge in energy costs has become a prominent issue in the current New York gubernatorial race. Republican nominee Bruce Blakeman has sharply criticized Governor Kathy Hochul’s administration, accusing it of enabling 48 utility rate increases during her tenure through the PSC, whose members she appoints. Blakeman has pledged to cut utility bills by half, repeal what he calls excessive surcharges, and return $2.4 billion in unspent energy tax revenues directly to consumers if elected.

In response, the Hochul campaign defended the governor’s efforts, highlighting initiatives that include rebate checks designed to alleviate energy costs for residents and regulatory actions aimed at utility companies. A campaign spokesperson accused Blakeman and former President Donald Trump of adopting policies that would lead to higher bills and fewer consumer protections.

As energy prices continue to rise, the debate over policy and regulation is likely to remain a central theme in New York’s political discourse.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.