Utility bills are hitting Lower Hudson Valley residents hard. Why are they so high?

Winter energy expenses are hitting many Lower Hudson Valley residents hard, if utility bills Westchester residents brought to one recent rally are any indication.

Representatives of utilities Consolidated Edison (Con Edison) and New York State Electric & Gas (NYSEG) gave reasons to the Journal News/lohud.com for higher costs, tips to reduce bills, what to do if you can’t pay, various payment-help alternatives, and answers to other questions.

High utility expenses have hit customers as they're also grappling with soaring costs for items such as eggs, driven up by bird flu. Some are looking at bills that are well over $1,000 a month, even if they live in a very small apartment or home, keep lights off and thermostats hovering in the low 60-degree range most of the time.

"Our thermostat is set to 60 degrees," said one customer of Central Hudson in Delaware County. "I don’t know how we will be able to afford this if it continues."

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How does a utility bill work? What to know about supply and delivery costs

In New York, a utility bill's two key components are delivery cost — using rates regulated by the state Department of Public Service — and supply cost, which a utility company and the state do not control. It's also subject to natural gas and electricity market shifts, buffeted by things that can include economic factors and supply-chain issues.

Utility companies seek state Department of Public Service approval to raise delivery cost rates. Con Edison, for instance, has a proposal for 2026 that it estimated would increase electric bills by an average of 11.4% and gas bills by an average of 13.3%. Some lawmakers and residents — some bringing with them utility bills of more than $1,000 — rallied at Westchester County Center Feb. 14 to urge the Public Service Commission to oppose the increase.

Con Edison has said the proposed rates would pay for infrastructure to "help the company maintain its nation-leading reliable electric service and continue fortifying its energy systems, as extreme weather events become more frequent and severe.” Planned is a three-year, $21 billion investment to build things such as transmission, substation and distribution facilities to better serve customers, the utility said.

Why are energy bills so high in the Hudson Valley?

Utilities insist the increased rates can be largely attributed to a colder winter in the Hudson Valley this year. Meanwhile, dozens of customers said in submissions to The Journal News/lohud.com that delivery charges appear to be the increased portion of their utility bills, as compared to previous months or years.

Looking at a monthly bill, whether on the supply-cost portion or delivery-cost portion, greater energy usage increases both.

Readers who wrote into The Journal News/lohud.com said their utility bills have increased by hundreds of dollars in recent months.

One reader in Westchester County said their average bill has been $550 over the past 12 months — this month, their utility bill was $1,230. Another, living in Dutchess County, said their energy usage is less than this time last year, and yet they've seen huge increases in utility charges over the last two months.

"We are retired and freezing in our home," the reader said.

Supply-cost prices have soared this winter — a charge that energy companies don’t control and don’t make money from, but pass on to customers, according to Shelby Cohen, NYSEG spokesperson. When demand — usage — increases, supply prices go up.

“Demand is up so high because this winter has been 16% colder than last year,” Cohen said.

A NYSEG news release attributed higher bills to drastic supply cost increases combined with households using more energy to heat homes to the same temperature during prolonged winter weather.

The state Department of Public Service said that, on average, supply costs make up about 35 to 45% of a customer's bill, depending on the utility company.

But the percentages of a bill made up by delivery and supply vary widely based on a number of factors, including the customer's rate plan, and whether they are an electric or gas customer, or both, Cohen, of NYSEG, said.

Allan Drury, a Con Edison spokesperson, said the main factor for higher bills is rising usage.

“We had a particularly cold spell in January and then another one this month,” he said.

Usage rose in January from December, Drury said.

Large bill increases have occurred in previous winters, too. The Journal News/lohud.com reported — in February 2022 — on soaring bills at the time, including a Putnam County homeowner whose bill hit close to $1,000, driven by the supply cost of electricity.

What are some tips to reduce the bill?

The Department of Public Service and the utility companies provide tips for customers, among them:

• Lower the thermostat — each degree over 68 degrees can increase a customer's energy use by 3%.
• Consider a cold wash: Switch the washing machine's setting to cold, which the utility said can cut energy use in half for washing one load.
• Keep ducts and vents clean: A heating system will run more efficiently.
• Make your refrigerator run more efficiently: Clean coils yearly and set a 38-degree temperature to conserve energy.
• Open shades on sunny days and close them at night.
• Insulate attics, foundations, heating ducts, and hot-water pipes.
• Put caulk around windows and doors.
• Install a programmable thermostat.

Have smart meters contributed to higher bills?

There have been news reports in which people questioned if installing smart meters increased monthly energy bills.

The answer to that question is no, according to the utilities' spokespeople.

Smart meters do not lead to high bills, Cohen said, but simply provide an actual monthly bill.

The meters have proven to be very accurate, Drury said, and they provide detailed information to customers about daily power usage.

Can a utility company turn off your electricity?

The Department of Public Services said that from Nov. 1 to April 15, a utility company "has to make special efforts to determine if disconnection of your heat-related service will cause a problem to your health and safety."

The utility company will attempt to contact a customer or another adult at the home by phone or in person at least three days before a scheduled service shutoff, and again on the day of shutoff, to determine whether shutting off heat-related service "could cause serious harm to the health or safety of any resident in your home."

If the utility finds harm might result, it must notify the local Department of Social Services, which does an investigation. The utility cannot shut off service for another 15 business days. 

Turning off a customer’s service is a last resort after many attempts to connect with a customer have failed, according to NYSEG. The goal is to help customers pay their bills.

It’s a step that Con Edison does not want to take, which is why the utility works with customers on their bills, Drury said. The utility will not disconnect residential customers at times of extreme cold or heat.