Last week I mentioned that I would be in touch regarding my thoughts on electricity pricing going forward. 

This is my 25th year of gas and electricity sales, and electricity markets are as complicated and unpredictable as I have ever seen. The past two years have seen tremendous increases in market price per Kwh, to rates as high as 23 cents/Kwh. Double-digit, prices in the teens are common. Those of you with fixed or Indexed rate contracts have fared very well.

Federal and New York state mandates (and funding) for renewal energy, along with high inflation affecting everything we purchase, are factors in the higher cost of electricity. Reduction in traditional sources of electricity production (coal, natural gas, oil and nuclear) in favor of renewables is having an impact. And we continue to have an antiquated electricity delivery/transmission system in the state with the Capital Region being in the infamous Zone F – infamous for high rates.  It’s flat out expensive to bring in electricity. This will not change.

With predictions for 2024 electricity rates increasing by 10% to 15% above 2023 rates, I recommend signing a 24 or 36 month fixed rate agreement.  Fixed rates will be much higher than past fixed agreements however, you’ve got to protect yourself in this unprecedented energy market. No question there is much greater chance for upside pricing than downside.

Regards,

John Thomas
Upstate Utilities, Inc.
2592 Western Ave., Suite 201
Altamont, NY 12009
518-355-4761 Phone
518-391-2370 Fax
518-225-8098 Cell