Findings show 70 percent of electric bills are excess taxes and fees
Albany, NY – The Independent Power Producers of New York (IPPNY) today released an informational brochure highlighting the various charges that go into New Yorkers’ electric bills. Looking at typical residential bills for National Grid and Con Edison customers in both 2012 and 2016, the key findings were:
- Despite New York’s power producers selling electricity to utility companies at a record low, consumers are not seeing a pronounced decrease in their bills.
- For customers of both National Grid and Con Edison, about 70 percent of residential electric bills are state taxes, public policy fees, and transmission and distribution charges.
- Power production made up 36% of the typical National Grid bill in 2012, but dipped to 29% in 2016.
- Rate mechanisms worked into bills can have customers pay additional amounts to utilities if the utilities’ projected financial forecasts were not accurate.
IPPNY President & CEO Gavin Donohue said, “As a trade association we’re always asked: If electricity is so cheap, why are electric bills not going down? We did this analysis to find that answer and attempt to educate the public and policy makers. It is surprising to see that 70 percent of what you pay in your bill is not even for electricity.”
The full brochure can be viewed digitally here: http://bit.ly/IPPNYelectricbill
The Independent Power Producers of New York, Inc. (IPPNY) is an Albany-based trade association representing the competitive power supply industry in New York State. IPPNY Members generate over 75 percent of New York’s electricity using a wide variety of generating technologies and fuels including hydro, nuclear, wind, coal, oil, natural gas and biomass. They have invested over $10 billion in their facilities and employ over 10,000 people. Annually, they pay over $600 million in taxes and invest more than $55 million in their communities.