Energy prices touch almost every part of our lives – from heating bills to what local shops spend keeping their lights on. As 2025 begins, everyone wants to know: will energy costs keep climbing, or can we expect some relief?
City Power and Gas breaks down what’s affecting electricity and natural gas prices across New York and Pennsylvania, what experts think will happen this year, and how you can make smarter choices to manage your bills.
The Current State of Energy Prices
Americans have watched energy costs swing wildly over the past few years. The pandemic messed up supply chains, global conflicts erupted, and extreme weather hit hard – energy markets have been all over the place.
By late 2023, commercial electricity hit around 12.96 cents per kilowatt-hour across the U.S. – a clear jump from earlier years. New York and Pennsylvania residents felt this hard, especially when heating or cooling needs peaked.
Here’s what that looks like:
In New York, packed cities and older grid systems have pushed electricity prices above what most of the country pays.
In Pennsylvania, plenty of natural gas has helped keep costs steadier, but the fees for getting power to your home still add up on monthly bills.
City Power and Gas tracks these patterns closely to help you stay informed and pick the best rate plans.
Why Energy Prices Change – The Key Drivers
Energy pricing doesn’t just happen randomly. It’s shaped by global and local factors working together. Here are the big ones affecting what we’ll see in 2025:
a. Global Politics
Energy is traded worldwide, and what happens overseas often hits us at home. The war in Ukraine disrupted oil and natural gas supplies in Europe, which pushed up fuel prices globally. Even though production has shifted to other places, the market uncertainty keeps affecting American prices – especially for power plants that run on fuel.
b. Supply Chain Pressure
From gas pipelines to renewable equipment, the energy supply chain is still strained. Materials like copper, lithium, and steel – all needed for modern grid systems – cost more now, which adds pressure on utilities and providers.
c. Growing Demand at Home
Power use is going up across the U.S. New industries like AI data centers and electric vehicle charging eat up massive amounts of energy. At the same time, homes are using more electricity through smart devices and heat pumps.
d. Moving to Clean Energy
The shift toward renewable power is good for the planet, but in the short term, it costs money. Updating the grid, building new renewable facilities, and retiring old fossil-fuel plants require big investments. Those costs often show up in what you pay – at least until the technology gets cheaper.
What’s Happening in New York and Pennsylvania
Both states have strong positions on clean energy and cutting carbon, but their markets work differently.
New York
New York’s Climate Leadership and Community Protection Act (CLCPA) set big goals for renewable adoption and carbon cuts. The state wants to generate 70% of its electricity from renewable sources by 2030.
These goals are building a cleaner energy future, but they also bring higher short-term costs as utilities upgrade systems and add renewables. But competitive suppliers like City Power and Gas – Electric and Gas Company in New York, give residents other pricing options that can help offset these rising utility rates.
Pennsylvania
Pennsylvania produces a lot of natural gas, which has helped it keep prices more stable over the years. But even here, energy costs have crept up because of infrastructure investments and national market trends.
For Pennsylvania households, City Power and Gas – Electric and Gas Company in Pennsylavania, offers fixed-rate energy plans that protect you from sudden market swings – giving you peace of mind when things feel uncertain.
Will Energy Prices Go Up or Down in 2025?
Most experts think energy prices will rise moderately in 2025, though not nearly as steep as what we saw in 2022 or 2023.
Key Predictions:
- U.S. average electricity rates could climb by 3% to 5%, driven by infrastructure upgrades and adding renewables to the grid.
- Natural gas prices will likely stay relatively stable, assuming no major political disruptions.
- Regional differences will stick around: urban areas like New York City may see slightly higher rates because of grid congestion, while parts of Pennsylvania could enjoy more stability thanks to local gas supplies.
In short, prices aren’t expected to drop dramatically – but the wild spikes from the past few years should start to level out.
The Role of Renewable Energy in Price Stability
The clean energy shift is changing how power gets produced and priced. As wind, solar, and hydro become more common, long-term stability should improve.
But renewable power depends on weather patterns, battery storage, and grid upgrades. Until these systems work reliably everywhere, temporary ups and downs will continue.
That’s where suppliers like City Power and Gas make a difference – offering flexible plans that help you stay protected from unpredictable wholesale price swings.
How Energy Prices Affect Homes and Businesses
Energy prices create ripple effects throughout the economy:
Households: Rising costs mean higher utility bills, especially during summer and winter peaks.
Small Businesses: Energy is often one of their top three expenses. Even small rate changes can hurt profits.
Communities: When costs rise, people have less money to spend – affecting everything from grocery prices to transportation.
At City Power and Gas, we know how important predictable pricing is for families and businesses. That’s why we keep developing competitive fixed-rate plans and renewable energy options that fit real budgets.
Policy and Rules: The Balancing Act
Energy policy directly impacts pricing. Governments in both New York and Pennsylvania are working to balance affordability, reliability, and caring for the environment.
In New York, policymakers focus on carbon-free generation and grid upgrades, supported by incentives for clean energy investment. In Pennsylvania, regulators make sure natural gas markets stay fair and transparent while encouraging renewable integration.
For residents, knowing these policies helps you make informed decisions – and that’s where City Power and Gas helps bridge the gap between complex energy markets and everyday customers.
Money and Environmental Impacts
Money Outlook
Rising energy costs can slow down spending, especially for low and middle-income households. But affordable suppliers like City Power and Gas give you options to manage those pressures through predictable rates and clear billing.
Environmental View
High fossil fuel prices can actually push faster adoption of renewable energy. As solar and wind technologies get cheaper, they’ll increasingly replace older, more expensive generation methods – helping stabilize prices over time while protecting the environment.
What You Can Do to Manage Energy Costs
While market forces are beyond your control, there are practical steps you can take to reduce your energy burden:
Compare Plans Often – Many residents don’t know they can choose their energy supplier. City Power and Gas offers competitive plans that often beat standard utility rates.
Choose Fixed-Rate Options – Locking in your rate shields you from market ups and downs.
Use Energy Wisely – Small changes like using LED bulbs, smart thermostats, and better insulation can make a real difference.
Go Green When Possible – Renewable plans from City Power and Gas let you support cleaner energy without paying extra.
The right combination of smart habits and the right supplier plan can seriously lower your overall energy costs.
Looking Ahead: What to Expect Beyond 2025
Long-term forecasts suggest that by 2026-2030, energy prices will likely stabilize further as renewable capacity expands and grid efficiency improves.
But temporary spikes may still happen during:
- Harsh winters or heat waves
- Supply chain shortages
- Global political conflicts
The best protection is preparation – and City Power and Gas stays dedicated to helping both New York and Pennsylvania customers stay informed and in control of their energy future.
The City Power and Gas Advantage
Choosing City Power and Gas isn’t just about price – it’s about partnership. We think energy should be simple, transparent, and affordable.
Here’s what sets us apart:
Competitive Pricing: We work hard to offer rates that help customers save.
Flexible Plans: Choose fixed, variable, or renewable options to fit your lifestyle.
Local Focus: Serving both New York and Pennsylvania, we know local markets and seasonal challenges.
Caring for the Planet: Our green energy options let customers make a positive impact without extra hassle.
In an uncertain energy market, City Power and Gas stands as a steady ally, helping you power your home or business with confidence.
FAQs
1. Will energy prices go up or down in 2025?
Energy experts expect moderate increases in 2025 energy prices, mainly because of infrastructure upgrades and clean energy investments. While prices won’t surge as sharply as in 2022, New York and Pennsylvania may still see small hikes of around 3-5%. Partnering with City Power and Gas helps customers lock in stable, affordable rates and avoid sudden spikes.
2. Why are electricity prices higher in New York compared to other states?
New York has a dense urban grid, higher operating costs, and strong renewable energy goals under the Climate Leadership and Community Protection Act (CLCPA). These factors can raise electricity prices in the short term. City Power and Gas helps residents counterbalance those costs through competitive plans designed for New York households.
3. How can I lower my energy bill in Pennsylvania?
Pennsylvania customers can reduce energy costs by choosing fixed-rate plans from City Power and Gas, improving home insulation, and switching to LED lighting and smart thermostats. Using energy during off-peak hours and trying renewable energy plans can also lead to long-term savings.
4. Is renewable energy more expensive than regular electricity?
Not anymore. Thanks to falling solar and wind costs, renewable energy now competes with regular power sources on price. Through City Power and Gas, New York and Pennsylvania customers can choose green energy plans that support caring for the planet without paying more.
5. How does City Power and Gas help protect customers from market ups and downs?
City Power and Gas offers fixed-rate energy plans that lock in prices for the contract term, shielding customers from market swings caused by fuel shortages or global events. This gives you predictable monthly bills and peace of mind, especially when energy prices jump around nationwide.
Final Thoughts
Energy prices in 2025 will likely stay on the higher side but with fewer sharp jumps than in recent years. The mix of cleaner technology, economic growth, and policy changes will define how prices move – especially in energy-active states like New York and Pennsylvania.
By choosing a trusted supplier like City Power and Gas, you can stay protected from market ups and downs and enjoy transparent, affordable, and reliable service. Whether prices rise or fall, your best defense is an energy partner who knows both the market and your needs.