A FERC report in May signaled a likely NYISO price spike this summer, in the range of 89% higher than last year. See NY City Wholesale Electricity Prices May Rise 89% Due to Market Design and Higher Natural Gas Prices.
FERC Staff made a new report in June indicating that NYISO forward prices for July -August are now 123% higher than last year.
Because Con Edison buys a lot of power at NYISO spot market rates, or at rates indexed to spot market prices, it is likely that customers will see much higher prices this summer. In June, prices jumped by more e than 3 cents/kWh above a projected price for residential customers filed in April. See Con Edison Electricity Rates for Energy Spike 21% in June.
Customer impacts will vary, based on the amount of market risk the PSC allows utilities to pass through to customers.
The increase is due to rising natural gas prices that affect NYISO clearing prices. Although New York State has diverse sources of lower cost non-gas generation (nuclear, hydro, coal, wind, for example) all sellers receive the same price under the NYISO pricing system.