Rochester, New York – According to the state’s top research organization, heating and electric customers in Upstate and Western New York can expect a considerable increase in their energy costs. The non-profit New York Independent System Operator listed several causes for this.
According to the New York ISO, the same factors that have increased the cost of other necessities are likely to have an effect on electricity and natural gas bills this winter as demand increases. International disputes have a cascading effect when supply and demand are not balanced.
According to New York ISO research, the national and international markets for fossil fuels are undergoing rapid and unpredictable changes that could result in Western and Upstate New Yorkers paying up to 39% more for their energy.
“That translates to about $50 per month compared to last year,” Senator Kirsten Gillibrand said while promoting a bill to lower energy costs for low-income households.
Demand for natural gas, which has increased again after the COVID-19 outbreak, is one reason driving up energy prices. At a time when, according to New York ISO, investors were holding back on boosting facility construction and extending energy supplies.
“A lot of the shipping lanes have been clogged and a lot of deliveries haven’t been made when items arrive at ports,” Sen. Gillibrand added. “That will also impact a lot of oil shipments, natural gas shipments, and natural gas pipelines.”
Sen. Gillibrand also attributes the rise in oil prices to the conflict in Ukraine. Since the Trump Administration made it simpler to export natural gas to foreign markets, U.S. prices have been more closely correlated with those of international markets. putting more pressure on natural gas prices so that they eventually affect the electric generators they power.
“Some oil-producing countries have used this opportunity to price gouge,” Sen. Gillibrand continued. “And in other instances, the supply chain is an issue.”
Experts like Jason Squillante from John Betlem Heating and Cooling advise property owners to prepare their houses by tightening their installation and using less energy because there is no fixed period of time during which consumers may anticipate higher energy costs.
The wholesale electricity markets in the state and New York’s target to switch from fossil fuels to renewable energy by 2040 are two other elements the New York Independent System Operator determined to be contributing to increased pricing.