RENSSELAER, N.Y. (NEWS10) — The New York Independent System Operator (NYISO) is forecasting a sharp rise in wholesale electric costs this winter. The increase in cost is a result of several economic and geopolitical factors that are continually impacting the market cost of natural gas used in the production of electricity.
NYISO released an updated white paper in May, in an attempt to prepare its consumers for the upcoming winter. The updated white paper details what’s increased the cost behind commodity increases over the past year, and predicts further commodity cost increases this winter. Some of the factors leading to the increase in price include but aren’t limited to the current inflation rate, the war in Ukraine, and COVID-19.
According to the updated white paper, New York saw the average demand for electricity decline by nearly 4% in 2020, compared to 2019. With many people working from home, people have driven and flown less, and the demand for all forms of energy, specifically fossil fuels have dropped.