In 1998, New York opened its electric industry to retail competition. Each of the State's seven major utilities submitted a restructuring plan to phase in retail competition through 2001 or sooner. State regulators believed that competition would help lower New York's retail electricity rates, which have been among the highest in the Nation.

• Through the early 1990s, New York's nominal electricity prices—prices unadjusted for the effects of inflation—increased, reaching a high of 11.13 cents per kilowatthour (kWh) in 1996. Prices decreased slightly in 1998 and 1999, brought on, in part, by immediate rate reductions or rate freezes called for in each of the utilities' restructuring plans (see graph).
  
  
• Because electricity rates were increasing more than inflation during the early 1990s, New York's real electricity prices—prices from which the effects of inflation are eliminated—increased through 1993, then decreased, reaching 10.4 cents per kWh in 1999 (see graph).
  
  
• In 1999, residential customers in New York paid an average of 13.32 cents per kWh, which was substantially above the national average of 8.16 cents per kWh for all residential customers. On the other hand, industrial customers paid an average of 4.77 cents per kWh, which is relatively close to the national average of 4.43 cents per kWh for industrial customers.
  
  
• Through 2001, electricity rates will likely decrease because of the rate reductions and rate freezes. Each utility has a different plan so the rate decrease will not be uniform across the State, but the State average price should decrease. After phase-in of full competition is completed, prices will generally be set competitively. State regulators anticipate that competition will keep future retail electricity prices low.
  

Related Websites

• Energy Information Administration, Monthly Energy Review (Table 7.5):
  http://www.eia.doe.gov/mer/elect.html
• Average Retail Prices of Electricity, 1960 - 2003 (Table 8.10)
• Energy Information Administration, State Electricity Profiles: http://www.eia.doe.gov/cneaf/electricity/st_profiles/new_york.pdf
• Energy Information Administration, Electric Power Monthly (Tables 44-55): http://www.eia.doe.gov/cneaf/electricity/epm/epm_sum.html
• Energy Information Administration, U.S. Average Monthly Bills by Sector, Census Division, and State (Table 1): http://www.eia.doe.gov/cneaf/electricity/esr/esr_tabs.html
• Energy Information Administration, Electricity Revenue, Sales and Price for Power Marketers (Tables C1-C4): http://www.eia.doe.gov/cneaf/electricity/esr/esr_tabs.html
• Energy Information Administration, Electricity Revenue, Sales, and Price by State and Utility: http://www.eia.doe.gov/cneaf/electricity/esr/esr_tabs.html