New York ranks third in U.S. residential electricity costs, fueling governor's race debate

According to a recent Empire Center study, New York's average residential electricity cost reached 29.93 cents per kilowatt-hour in May, placing the state third nationwide behind Hawaii and California and 62% higher than the U.S. average. The figure reflects a 12% rise from the prior year, double the growth rate of the national average, and follows a steady climb in state rankings over the past months. Policy analysts attribute the surge to a mix of high taxation, transmission and distribution expenses, and green-energy mandates, while the closure of the Indian Point nuclear plant has reduced local supply.

The soaring bills have become a hot-button issue in the 2026 governor's race, with Republican Bruce Blakeman blaming Governor Kathy Hochul for approving dozens of rate hikes and promising to cut bills in half, whereas Hochul's campaign highlights rebate checks and a temporary ban on new AI-driven data centers. Utility firms Con Edison and National Grid are allowed to pass numerous taxes and fees onto consumers, further inflating household costs.