Energy service providers in New York – known as ESCOs – give you the power to choose your own electricity or natural gas supplier instead of defaulting to your utility. Companies like City Power and Gas compete on price, plan flexibility, and green energy options, helping both residential and commercial customers cut costs and take control of their energy bills.
TL;DR
- New York has a deregulated energy market – you can choose your own electricity and gas supplier
- ESCOs like City Power and Gas compete for your business, often offering better rates than your default utility
- With electricity rates averaging 27.07¢/kWh – 50% above the national average – New Yorkers have strong reason to shop around
- Fixed-rate plans protect you from monthly price swings; green plans let you support renewable energy
- Your utility (Con Edison, National Grid, etc.) still delivers your energy no matter which ESCO you pick
- The NY Power to Choose tool helps you compare energy rates by ZIP code for free
- The Climate Leadership and Community Protection Act (CLCPA) is pushing New York toward 100% clean electricity by 2040
What Are Energy Service Providers and Why Do They Matter in New York?
Let’s be straightforward about something: most New Yorkers are paying more than they need to for electricity and gas. Not because good options don’t exist – but because most people don’t know they can shop around.
In 1998, energy deregulation in New York transformed the state’s energy market by introducing competition between energy suppliers and allowing residents and businesses the power to choose. This meant utility companies no longer monopolized the areas they served – instead, competition between energy service companies (ESCOs) was permitted.
Energy service companies (ESCOs) supply electricity and natural gas to homes and businesses throughout New York. They buy energy from wholesale markets and sell it directly to you – often at rates that are more competitive than what your default utility charges.
City Power and Gas is an ESCO certified by the Public Service Commission. It provides natural gas and electricity for New York City and Long Island and is always working to save customers time and money – having quickly become one of New York’s fastest growing Energy Service Companies.
That’s a big deal. In a city where energy bills climb every winter and every summer, having a reliable, competitive energy provider in your corner matters.
The Real Cost Problem: Why Electricity Rates in New York Are So High
Here’s something that might sting a little. Electricity rates in New York average 27.07¢/kWh – that’s 50% above the national average. New York’s high electricity costs are driven by constrained natural gas pipelines, aging urban infrastructure especially in New York City, high property and labor costs, aggressive clean energy mandates, and transmission congestion between upstate generation and massive downstate demand.
The thing is, you can’t control those structural costs. But you can control the supply portion of your bill. The supply portion of your bill is shoppable – and given New York’s high rates, even modest percentage savings translate to meaningful dollar amounts.
This is exactly why working with a trusted energy provider like City Power and Gas makes sense. Their in-house pricing analysts review market fluctuations daily and adjust pricing accordingly, working hard to ensure their rates stay among the most competitive in the industry.
How Energy Deregulation in New York Actually Works
You might think switching energy providers sounds complicated. Honestly, it’s simpler than most people expect.
When deregulation began in New York, utilities that wanted to participate in consumer choice had to sell off their natural gas and electricity generation businesses. These utilities became energy delivery-only businesses. Meanwhile, ESCOs took over the job of shopping for energy supplies on the wholesale market to sell to consumers.
Here’s the key part: since ESCOs compete with each other for customers, they offer supply at competitive rates. However, the NY Public Service Commission requires local utilities to provide energy supply at a default rate to customers who don’t shop for a retail supplier.
So if you’ve never switched, you’re likely on that default rate – and it changes monthly. This often makes things hard for customers who want to stick to a budget. Retail suppliers, meanwhile, are able to provide customers with fixed-rate plans for anywhere from as little as 3 months to 3 years. Fixed-rate plans stay the same month-to-month and can shield you from seasonal price spikes.
The switch completes within 1 to 2 billing cycles with zero service interruption. Your utility continues to deliver power – only the supply charge on your bill changes.
Understanding the Difference: Utilities vs Energy Suppliers
A lot of people confuse utility companies with energy suppliers. They’re not the same thing, and understanding the difference helps you make smarter decisions.
Utility companies – like Con Edison and National Grid – own the infrastructure. Con Edison will still deliver your natural gas or electricity. They are responsible for maintaining their pipelines and poles and wires that bring energy to your home or business – no matter who you buy it from.
Energy suppliers (ESCOs) like City Power and Gas handle the supply side. ESCOs are competitive businesses that purchase energy on the wholesale market and resell it. Because these providers are forced to offer competitive pricing, you can benefit by switching to a lower rate than what the utility offers.
So here’s the bottom line: no matter what ESCO you choose, your utility will still read your meter, answer service calls, send your bill, and provide emergency assistance. They deliver your energy – but where that energy comes from is up to you.
This is one thing people often get wrong. Switching to an energy supplier like City Power and Gas does not mean giving up reliable delivery or emergency support. Your lights stay on. Your pipes stay warm. You just pay less for the supply portion.
Types of Energy Plans You Can Choose From
Today you can pick from different ESCOs offering fixed-rate, variable-rate, or green energy plans. Here’s what each one means for you:
Fixed-Rate Plans You lock in a set rate per kilowatt-hour (kWh) for a defined period – usually 3 to 36 months. This is the go-to choice if you want predictability. Your bill might be a little higher some months compared to the variable rate, but you’ll never get hit with a nasty spike in January.
Variable-Rate Plans Your rate changes month to month based on wholesale market prices. This can work in your favor during mild weather months, but it can hurt during extreme heat or cold snaps when demand shoots up.
Green Energy / Renewable Energy Plans Many New York ESCOs offer renewable energy options. However, not all green plans work the same way. Some plans may rely on 100% green energy, while others only obtain a portion of their energy from green sources. Some offers include wind, solar, hydroelectric, biomass, and other environmentally friendly power sources.
City Power and Gas provides access to both residential and commercial customers across New York City and Long Island, with competitive pricing across plan types. Services include licensed installers, boilers, burners and maintenance, all architectural filings required by the City of New York, and 24-hour service during winter months, including gas conversions.
Green Energy New York: What Your ESCO Options Look Like
There’s growing demand for green energy in New York – and honestly, that makes sense. People want to do right by the environment without paying a premium. The good news is that renewable energy costs have dropped dramatically in recent years.
Many New York ESCOs offer renewable energy options. However, not all green plans function the same way. Some plans may rely on 100% green energy, while others only obtain a portion of their energy from green sources.
When an ESCO offers green energy, they may get power directly from solar and wind farms. Alternatively, they may purchase renewable energy credits (RECs) to offset the energy that you use. So before signing up for a “green plan,” it’s worth asking exactly what percentage is renewable and how those credits work.
New York’s Climate Leadership and Community Protection Act (CLCPA) is pushing the state toward 100% zero-emission electricity by 2040. The CLCPA is reshaping the energy landscape while maintaining full retail choice across all six major utility territories. That means you’ll have more green energy options from ESCOs over time, not fewer.
City Power and Gas stays ahead of this trend by regularly reviewing pricing structures for both conventional and green energy in the New York City and Long Island markets.
Community Choice Aggregation: Another Option Worth Knowing
Beyond individual ESCO plans, some New York communities have set up Community Choice Aggregation (CCA) programs. Through these programs, a municipality negotiates energy rates on behalf of all residents in the area, pooling purchasing power to get better deals.
This is a solid option for residents in participating areas who don’t want to shop individually. That said, CCA rates are not always the best available – and you can often find more competitive natural gas rates or electricity rates by working directly with a trusted electric and gas company like City Power and Gas.
How to Actually Compare Energy Rates in New York
Comparing energy rates in New York is easier than most people think. Here’s a practical approach:
Step 1: Find your current rate Check your most recent utility bill. Look for the “supply charge” – this is the portion that’s actually shoppable. The delivery charge stays with your utility regardless.
Step 2: Use NY Power to Choose The New York Public Service Commission runs an online service called New York Power to Choose, which allows energy customers to view current and historic electric rates in their area. Enter your ZIP code and filter by plan type.
Step 3: Check the ESCO’s complaint record The PSC publishes the ESCO Residential Complaint Rate Scorecard, which reflects complaint rates for ESCOs that serve at least 1,000 customers in New York State. This is a useful gut-check before signing up.
Step 4: Read the contract carefully The PSC mandates clear disclosure of all rates, fees, and contract terms before enrollment. Look at cancellation fees, contract length, and whether rates change after an introductory period.
Step 5: Contact City Power and Gas City Power and Gas serves New York City and Long Island, is certified by the Public Service Commission, and has a team ready to walk you through your options. Their staff takes pride in fast and accurate assessment of any situation and provides quick resolution with minimal downtime.
The Regulatory Framework Behind New York’s Energy Market
New York’s energy market doesn’t just run on competition – it runs on rules designed to protect you.
The New York Public Service Commission (PSC) oversees the deregulated marketplace, approves licenses for ESCOs, and regulates utility prices. It also runs the New York Power to Choose program, which informs residents about their energy choices.
The New York Public Service Commission requires all ESCOs to guarantee that their rates will not exceed the utility’s default supply rate for low-income customers on utility assistance programs. This is an important consumer protection worth knowing about.
Recent years have also brought major legislative changes. The RAPID Act (Renewable Action through Project Interconnection and Deployment) was designed to streamline the permitting process for renewable energy projects and speed up the state’s shift toward clean energy. In early 2026, the NY PSC also adopted new regulations under Article VIII of the Public Service Law, consolidating permitting processes for large renewable projects and electric transmission infrastructure.
These aren’t just political headlines – they translate to more renewable energy supply entering the grid, which gives ESCOs like City Power and Gas more clean energy options to offer their customers.
NYSERDA Incentives and Energy Efficiency Programs
Switching to a competitive energy provider is one part of the equation. The other part is using less energy in the first place – and New York has solid programs to help with that.
The New York State Energy Research and Development Authority (NYSERDA) offers several programs worth knowing:
- EmPower+: No-cost energy efficiency improvements for income-eligible New Yorkers, including insulation and efficient heating systems
- Weatherization Assistance Program (WAP): Helps low-income households reduce heating and cooling costs through home improvements
- Financial incentives: Low-interest financing and tax credits for energy-efficient upgrades
These programs work hand-in-hand with competitive energy plans. Lower your usage, then lock in a better supply rate through City Power and Gas – and your monthly bills could drop significantly.
What Makes a Good Energy Provider? Customer Satisfaction Matters
Price is important. But it’s not the whole story.
Research into customer satisfaction with energy providers shows three things matter most to New Yorkers:
- Responsiveness – How fast does your provider respond when something goes wrong?
- Reliability – Does your service stay consistent month to month?
- Value – Are you getting fair pricing for the quality of service you receive?
Some energy service companies have misled customers by falsely representing themselves as Con Edison employees or by falsely telling customers they need to switch within 30 days. Be aware: a legitimate provider will never send a salesperson to your door threatening deadlines. Switching to an alternative energy supplier is entirely your choice.
City Power and Gas operates with full PSC certification, transparent pricing, and a team focused on serving both residential and commercial customers across New York City and Long Island. They are always working to find ways to save customers time and money.
Future Trends: Where New York’s Energy Market Is Heading in 2026 and Beyond
A few trends are shaping what energy will look like for New Yorkers in the coming years:
Rising electricity demand: Data centers, EV charging, and electrification of buildings are driving demand higher. This puts more pressure on supply – and makes locking in a fixed-rate plan smarter than ever.
Renewable energy growth: Solar and wind costs have fallen sharply. More renewable supply means ESCOs have more options to offer green energy at competitive prices.
Grid modernization: New York is actively modernizing its grid infrastructure under the CLCPA framework. This should improve reliability over time, but in the near term, consumers who’ve locked in stable rates will be insulated from transition-period volatility.
Stronger consumer protections: The PSC continues tightening rules around ESCO marketing practices and rate disclosure – which is good news for anyone shopping for an electric company in New York or gas supplier in New York.
Why City Power and Gas Stands Out as an Electric and Gas Company in New York
There are many energy providers in New York. So why choose City Power and Gas?
City Power and Gas is an ESCO certified by the Public Service Commission, providing natural gas and electricity for New York City and Long Island. City Power and Gas has quickly become one of New York’s fastest growing Energy Service Companies.
What sets them apart comes down to a few things:
- Daily pricing reviews to keep rates competitive
- Full service offerings including gas conversions and boiler maintenance
- PSC certification and regulatory compliance
- 24-hour winter service coverage
- Knowledgeable staff ready to help with both residential and commercial accounts
Whether you’re looking for an electric company near you, a natural gas company in New York, or a combined electric and gas company in New York, that handles both, City Power and Gas is worth a serious look.
FAQs
Q1: What are energy service providers in New York?
Energy service providers in New York, known as ESCOs (Energy Service Companies), are licensed companies that purchase electricity and natural gas from wholesale markets and sell it directly to residential and commercial customers. They compete to sell you electricity and natural gas, must be registered with the New York State Public Service Commission, and act solely as the energy supplier – your utility remains the energy delivery company.
Q2: How does energy deregulation in New York work?
In 1998, energy deregulation in New York transformed the market by introducing competition between energy suppliers and allowing residents and businesses the power to choose. Utility companies no longer monopolized their service areas – competition between ESCOs was permitted. Deregulation can lead to cost savings and improved service for customers.
Q3: What is the difference between a utility company and an energy supplier in New York?
Your utility company – like Con Edison or National Grid – is responsible for delivering electricity and maintaining infrastructure. Even if you switch suppliers, your local utility still delivers the electricity, owns the power lines, handles maintenance, and responds to outages. Your monthly bill still comes from your utility and includes a delivery charge, even if your supply comes from another company.
Q4: How do I compare energy rates in New York?
The New York Public Service Commission runs an online service called New York Power to Choose, which allows energy customers to view current and historic electric rates in their area. You can also contact ESCOs like City Power and Gas directly for current rates in your ZIP code. Always compare the supply charge – not the total bill – when shopping.
Q5: What are natural gas rates in New York?
Natural gas rates in New York vary by provider, season, and plan type. The NY PSC requires local utilities to provide energy supply at a default rate to customers in their service territory who don’t shop for a retail supplier. That default rate changes monthly. ESCOs like City Power and Gas can offer fixed natural gas rates that protect you from those swings. Contact City Power and Gas for current natural gas rates in your area.
Q6: Is green energy available from New York energy providers?
Yes. Some energy service companies may offer a lower price for energy, or they may offer green energy from renewable sources like wind, solar, and hydroelectric power. Some plans may rely on 100% green energy, while others only obtain a portion from renewable sources. Always ask your provider about the exact percentage and verify how RECs are handled.
Q7: Will my electricity be interrupted if I switch to a new energy provider?
No. Your energy service will not be interrupted by switching to an ESCO. Con Edison will continue delivering natural gas through their pipelines and electricity over their wires to your home. If you switch, the only difference you notice will be a change in the rate you pay.
Q8: What should I look for in an energy plan in New York?
Two things to keep in mind when choosing an ESCO are pricing and added value services. Pricing can be at a variable or fixed rate depending on the supplier and contract. Added value services can include maintenance services or supply energy from green sources like hydro, solar, or wind. Also check cancellation fees, contract length, and rate renewal terms.
Q9: What is City Power and Gas and what areas does it serve?
City Power and Gas is an ESCO certified by the Public Service Commission that provides natural gas and electricity for New York City and Long Island. They serve both residential and commercial customers and offer services including gas conversions, boiler installation and maintenance, and 24-hour winter service.
Q10: What is the Climate Leadership and Community Protection Act (CLCPA) and how does it affect energy plans in New York?
The CLCPA, passed in July 2019, is New York’s major clean energy law. It sets a target of 100% zero-emission electricity by 2040 and requires at least 35% of clean energy investments to benefit disadvantaged communities. The CLCPA is reshaping the energy landscape while maintaining full retail choice across all six major utility territories. For consumers, this means more green energy plan options from ESCOs will become available over time as the state builds out renewable infrastructure.
Key Takeaways
- Energy deregulation in New York means you can choose your own electricity or natural gas supplier – you are not locked into your utility’s default rate
- City Power and Gas is a PSC-certified ESCO serving New York City and Long Island with competitive electricity and natural gas rates
- Electricity rates in New York average 27.07¢/kWh – 50% above the national average – making it one of the most expensive states in the nation
- Fixed-rate energy plans protect against monthly price volatility; variable plans carry more risk but can offer savings in mild weather
- Your utility company (Con Edison, National Grid, etc.) still delivers your energy regardless of which ESCO you choose – the switch is seamless
- Green energy options are available through New York ESCOs, including 100% renewable plans and renewable energy credit (REC) programs
- The NY Power to Choose tool at the Public Service Commission website lets you compare ESCO offers by ZIP code for free
- NYSERDA programs like EmPower+ provide no-cost energy efficiency upgrades for income-eligible New Yorkers
- The CLCPA targets 100% zero-emission electricity in New York by 2040, reshaping what energy plans will look like over the next decade
- Always review contract terms: cancellation fees, rate changes after the intro period, and plan length are the key things to check before signing
Ready to stop paying default utility rates? Visit citypowerandgas.com to compare energy plans and find out how much you could save on electricity and natural gas in New York City and Long Island.