The cost of gas and electricity can fluctuate according to demand and supply. This is the reason it’s essential to understand how your con ed energy costs function so that you can choose the best rate plan for your family and you.
Con Ed’s Electricity Rates
Con Ed’s electricity rates are controlled by the New York Public Service Commission (PSC). These are referred to as “Delivery Charges” and they are based on the cost to transmit electricity through towers, wires, and other infrastructure that connect your home to the local electrical grid con ed makes a profit by charging these fees to cover operating costs and maintenance.
The delivery charges are part of what the PSC calls “Price to Compare” default service rates, which also include generation supply costs and transmission costs. These charges are passed to you as a cost, without any markup.
This default rate is what the New York PSC deems the actual cost of generating and delivering electricity to your home from power stations in the grid that the utility purchases directly from generator companies. It includes the generation costs, transmission charges and other minor surcharges such as NYISO day-ahead market prices, ancillary service charges and Transco facilities charges.
Additionally, you will have to pay for fuel. This is the price Con Edison pays for gas turbines. Since Con Edison has to pay for fuel to power its turbines the gas bill could be higher than the electric one.
What is the most affordable rate?
Switching to another energy provider will help you save money. It’s also a good idea to figure out how much energy your home or business uses and what type of contract you will be signing to help you make an informed choice.
In most cases, you’ll get the lowest price when you purchase electricity from a retailer that has contracts with Con Ed. These contracts are typically with an energy service provider in your area known as “ESCO.” The ESCO is responsible to deliver the energy to your home or business and must be licensed by NY PSC.
They provide competitive fixed rate plans that are available on different terms, and they don’t have the same complex supply costs that local utilities like Con Ed puts into their PTC default rates.
Solar panels can also be an option to cut down on your energy bills. It’s a green energy source that’s been proven to be cost-effective and can also help reduce the carbon footprint of your home.
It is essential to know the factors that cause the high electric and gas bills if you want to save money. You’ll want to shop around, and take steps to cut down on your consumption, like cutting down on the use of air conditioning in the summer or switching off the lights when you’re not in the room.
