The New York State Public Service Commission announced Wednesday that it expects the state’s utilities will have adequate supplies of natural gas and electricity on hand to meet the demands of residential and commercial customers. Meanwhile, electricity bills are expected to be down from last winter, while gas bills are expected to be slightly higher.

“We are closely monitoring the utilities serving New York State to make sure they have adequate sources and supplies of electricity and natural gas to meet expected customer demands this winter,” said Commission Chair Rory M. Christian. “Further, the utilities have hedged approximately 70 percent of their estimated statewide full service electric residential energy needs to mitigate any electric market price swings this winter.”

The gas utilities have adequate natural gas supply, delivery capacity, and storage inventory to satisfy current firm customer demands under severe winter design conditions for this winter. Gas utilities continue to file long-term gas system plans, as required by Commission orders. The Department of Public Service (Department) continues to review and analyze gas utilities’ long-term plans separate from the present annual winter preparedness review.

Current data indicate slightly lower forecasted commodity prices, coupled with a normal weather forecast and increased delivery rates for several gas utilities for this winter, customer bills are expected to be higher than last year, on average. Customers may see varying price levels based on their service territory and the actual weather. In addition to individual usage, staff expects the average full-service residential electric commodity bills will be similar to last winter. Discounts for low-income households under the Commission’s Energy Affordability Program will be increased to address the higher prices.

On average, the electric utilities have hedged approximately 70 percent of their estimated statewide full service electric residential energy needs to protect against unexpected electric market price swings that could occur this winter. Department outreach efforts will provide consumers with information on available resources, ways to mitigate energy costs, measures to reduce energy consumption, bill management options, and financial assistance programs. Staff is also working with the state’s energy utilities to ensure they maintain strong communication with customers about the companies’ winter preparedness efforts.

On a statewide average, a residential electric customer using 600 kWh per month is expected to pay about $58 per month for supply this winter, down 2 percent from the same period a year ago, but the actual amount varies by utility. Meanwhile, the average residential customer using 700 therms of natural gas can expect to pay an estimated $202 per month during the winter heating season (November through March), up 11 percent from the same period a year ago, but note that the actual amount will vary widely by region due to the weather and usage. A colder-than-normal winter will cause usage and bills to increase. Note that the state’s investor-owned utilities take steps to reduce the volatility of electric and gas supply prices to their full-service residential customers. Between financial hedges and gas held in storage, gas utilities have hedged approximately 52 percent of their estimated statewide customer needs. However, customers are not completely shielded from global market price volatility.