NYISO Releases New White Paper Detailing Drivers of Rising Electricity Prices

RENSSELAER, NY (01/29/2026) (readMedia)-- The New York Independent System Operator (NYISO) today released a new white paper detailing the factors contributing to rising wholesale electricity prices in New York.

The white paper, Impact of National & Global Conditions on Electricity Prices in New York, discusses that higher natural gas prices, growing demand from large loads, aging power generation resources, cold weather, and supply chain challenges are placing upward pressure on electricity costs.

Wholesale electricity prices closely tracked surging natural gas costs in 2025, with average annual prices nearly doubling from 2024. More specifically, the average 2025 gas price at Transco Zone 6 –- which serves as a key delivery point for natural gas in the Northeast –- was roughly 120% higher than in 2024 –- trading at an average price of $4.64 per Million British Thermal Units (MMBtu) in 2025 compared to $2.10 per MMBtu in 2024. The result was significantly higher wholesale prices for electricity –- with an average price of $74.40 per megawatt hour (MWh) throughout 2025, compared to $41.81 per MWh for 2024.

"The grid is experiencing an unprecedented transition and, along with it, unexpected challenges. A variety of complex and evolving factors are impacting prices that consumers are seeing on their bills," said Shaun Johnson, Vice President of Market Structures for the New York Independent System Operator. "We know how important it is to provide consumers with information about the factors behind rising energy costs."

The white paper highlights a tightening supply margin, as older generation units retire faster than new resources are being built and persistent supply chain challenges slow project development. Since 2019, 4,315 megawatts (MW) of capacity left the system while only 2,274 MW have been added.

Demand-side trends also play a key factor in wholesale pricing. NYISO forecasts 1,900 MW of demand growth from the electrification of buildings and transportation within the next ten years. Additionally, more than 2,500 MW of new demand from large loads such as data centers and semiconductor manufacturers is expected by 2035.

View the complete white paper to learn more about the factors driving electricity prices.

About the New York ISO

The New York Independent System Operator (NYISO) is a not-for-profit corporation responsible for operating the bulk electricity grid, administering the competitive wholesale electricity markets, conducting comprehensive long-term planning, and advancing the technological infrastructure of the electric system serving the Empire State.