For all Governor Hochul’s talk about “affordability”, it seems electricity prices have not received that memo. Recent data from the U.S. Energy Information Administration show New York households on average pay the sixth-highest price for electricity in the continental United States.  

For March 2025 the average price of electricity in New York was estimated at $0.25 per kWh for residential users and $0.095 per kWh for industrial users. These rates are significantly above the U.S. averages of $0.17 per kWh and $0.08 per kWh, respectively. Households in New York pay 48 percent more, and industry pays 15 percent more than the national average.  

Similarly, despite the big talk about green energy, most of New York’s electricity still comes from natural gas and nuclear power. In fact, according to the New York Independent System Operator (NYISO), which manages the state’s electrical grid, since 2019 the proportion of fossil fuels used in electricity production has increased, while nuclear energy has gone down.  

Instead of the green energy revolution, New York is slowly losing the capability to make energy.  In a brand new report, NYISO warns Since 2019 New York has retired more electricity generation capacity than it added. Federal data show similar trends: from 2019 to 2024, while New York’s electricity generation dropped, the U.S. added 4 percent, Texas ramped up production by 16 percent, and Florida by 8. 

Meanwhile, New York is relying on increasingly outdated infrastructure to produce electricity. A quarter of New York’s electricity generation capacity has been in operation for more than 50 years, and some – for more than 70 years. With the state officially committed to achieving a zero-emission electrical grid by 2040, no one is rushing to invest in modernizing fossil fuel power plants or building new ones.  

This reduction in energy production capacity alone should cause concern. But to add fuel to fire, between the laws passed and new ones being considered, Albany is pushing New Yorkers to be more dependent on electricity for everything – heating, cooking and transportation – all of which will require much more electricity. Approximately double what New York produces now, according to the NYISO. 

On top of that, Albany is trying to encourage the development of energy-intensive industries such as the Micron chip plant in the Syracuse area. There is also talk about attracting artificial intelligence centers to New York, which, again, requires a lot of electricity which New York likely cannot supply on its current trajectory.  

Here we have the makings of a self-inflicted one-two punch. On one hand, Albany is discouraging companies from making the investments necessary to produce abundant and affordable electricity. On the other hand, Albany is driving up demand by making plans for household heating to rely on electricity rather than on their current sources of fuel, such as natural gas. 

Albany politicians act as if New York was awash with cheap and abundant electricity. In reality it is full of empty political promises and virtue signaling, but these do not produce electricity. 

The situation is not sustainable. A breaking point is approaching – slowed down only by the fact that Albany keeps missing its climate deadlines and doing a poor job of attracting new businesses.  

If New York politicians are serious about reindustrializing New York, revitalizing Upstate, and outcompeting other states for energy intensive manufacturing – they need to remove all hurdles to cheap, plentiful energy. That will help with affordability, too.