New York Commercial Electricity Rates for Cannabis Facilities: EIA Averages, Utility Classes, NYISO Zones
New York's average commercial electricity price was 23.56 cents per kWh in June 2026, 66 percent above the U.S. average of 14.19, while its industrial average was 10.17 cents. That spread is the widest of any deregulated cannabis state and it comes from geography and delivery class more than from fuel: Con Edison's Zone J load dominates the commercial average, while an upstate demand-metered facility on National Grid buys energy and capacity in zones priced far lower. Reading a New York rate means reading the utility, the service classification, the NYISO zone, and the month, not just one number.
New York figures last verified 2026-09-11. Full citations in the Sources section.
New York vs. the U.S., June 2026
| Sector | New York | U.S. average | New York premium |
|---|---|---|---|
| Commercial | 23.56 cents/kWh | 14.19 cents/kWh | +9.37 cents (+66 percent) |
| Industrial | 10.17 cents/kWh | not in state file |
Source: EIA Electric Power Monthly, Table 5.6.A [eia-epm-5-6-a].
Two things stand out. The commercial premium over the national average is the largest of any state where cannabis businesses can shop for supply. And the 13.39-cent gap between the state's own commercial and industrial averages is wider than the gap between New York commercial and the U.S. commercial figure. That second gap is the one a cannabis operator can act on, because it is driven by service classification, voltage, load factor, and location rather than by the price of gas.
| State | Avg. commercial price | Cannabis market | Energy choice |
|---|---|---|---|
| California | 27.33 cents/kWh | Adult-use + medical | Commercial-only choice |
| Massachusetts | 24.52 cents/kWh | Adult-use + medical | Full commercial choice |
| New York | 23.56 cents/kWh | Adult-use + medical | Full commercial choice |
| Washington, D.C. | 23.38 cents/kWh | Medical only | Full commercial choice |
| Rhode Island | 22.70 cents/kWh | Adult-use + medical | Full commercial choice |
| Maine | 22.24 cents/kWh | Adult-use + medical | Full commercial choice |
| New Hampshire | 21.22 cents/kWh | Medical only | Full commercial choice |
| Connecticut | 19.62 cents/kWh | Adult-use + medical | Full commercial choice |
| New Jersey | 18.47 cents/kWh | Adult-use + medical | Full commercial choice |
| Maryland | 16.84 cents/kWh | Adult-use + medical | Full commercial choice |
| Michigan | 16.63 cents/kWh | Adult-use + medical | Capped commercial choice |
| Illinois | 14.53 cents/kWh | Adult-use + medical | Full commercial choice |
| Delaware | 14.40 cents/kWh | Adult-use + medical | Full commercial choice |
| Ohio | 13.77 cents/kWh | Adult-use + medical | Full commercial choice |
| Pennsylvania | 13.33 cents/kWh | Medical only | Full commercial choice |
| Nevada | 9.83 cents/kWh | Adult-use + medical | Commercial-only choice |
| Texas | 8.66 cents/kWh | Low-THC medical only | Full commercial choice |
How the major utilities structure delivery and demand charges
| Utility | Territory | NYISO zones | Small class | Demand-metered classes | Demand-charge structure |
|---|---|---|---|---|---|
| Con Edison | NYC (except most of the Rockaways), most of Westchester | J, I | SC 2 General Small, up to 10 kW | SC 9 General Large, 10 kW and above, rate periods by voltage and time-of-day options | Customer charge plus per-kWh delivery plus per-kW demand; default-supply customers also pay a per-kW Demand Supply component [coned-rates] [coned-rates-faq] |
| National Grid (Niagara Mohawk) | Buffalo, Syracuse, Albany, Utica, Mohawk Valley, North Country | A through F | SC-2 Non-Demand, under 100 kW and under 2,000 kWh a month; $25.00 customer charge and 11.345 cents/kWh delivery on the current page | SC-2 Demand once use exceeds 2,000 kWh for four consecutive months ($65.00 customer charge, $18.93/kW); SC-3 Large General when demand exceeds 100 kW in each of the previous 12 months; SC-3A time-of-use above 2,000 kW | SC-3 minimum covers the first 40 kW and per-kW charges above 40 kW run $4.36 to $15.62 by service voltage; SC-3A demand $4.89 to $15.58/kW with hourly supply posted daily by 4 p.m. [ngrid-upstate-service-rates] |
| NYSEG (Avangrid) | Southern Tier, Finger Lakes, Central NY, parts of the Hudson Valley | C, E, G | SC-2 small general, with a demand-billed variant | SC-3 general service (demand-metered), SC-7 large general service with sub-classes by voltage | Keyed to billing demand; accounts crossing the SC-7 threshold in repeated periods are reclassified. Current kW thresholds and $/kW not confirmed for this page [ny-dps-esco-info] |
| RG&E (Avangrid) | Rochester, Genesee Valley | B | SC-2 small general | SC-3 general service, SC-8 large general service | Keyed to billing demand; joint rate plan with NYSEG; confirm current figures in the RG&E rate summary |
| Central Hudson (Fortis) | Poughkeepsie, Kingston, Newburgh; Dutchess, Ulster, Orange | G | SC 2 without measured demand | SC 2 secondary measured demand, SC 2 measured demand over 50 kW, SC 2 primary measured demand; SC 3 Large Power Primary; SC 13 transmission-level at 69 kV and above | Per-kW delivery demand on all measured-demand sub-rates, SC 3, and SC 13; hourly-pricing special provisions for the largest accounts [cenhud-rate-codes] |
| Orange & Rockland | Rockland, parts of Orange and Sullivan | G | SC 2 general service, with a demand-billed variant | SC 9 general large | Per-kW demand on demand-metered accounts; pull current tariff leaves for figures |
Dollar figures in this table are the ones printed on National Grid's service-rates page as opened September 11, 2026 [ngrid-upstate-service-rates]. No Con Edison, NYSEG, RG&E, Central Hudson, or O&R $/kW figures are quoted here because the current tariff leaves were not opened for this page; the utility pages for Con Edison, National Grid, NYSEG, and Central Hudson explain where to find them.
The pattern that matters for a grow: the per-kW charge at National Grid drops from $18.93 on SC-2 Demand to a range of $4.36 to $15.62 on SC-3 depending on voltage [ngrid-upstate-service-rates]. Class placement and service voltage are worth more than any supplier discount, which is why demand charges explained is the first page to read before a supply contract.
The default supply benchmark
New York does not publish a single price to compare. Each utility's default supply is priced off NYISO day-ahead market results and changes monthly.
| Utility | Name of default supply | How it is set |
|---|---|---|
| Con Edison, Orange & Rockland | Market Supply Charge (MSC) | Calculated from NYISO day-ahead prices adjusted for load shape and losses; for demand-billed plans, split into Energy Supply per kWh and Demand Supply per kW, the latter recovering capacity cost. Default customers also pay a Merchant Function Charge and a Clean Energy Standard supply surcharge [coned-rates-faq] |
| National Grid | Monthly electric supply charge | Posted on the monthly Electric Rate Statement; SC-3A customers pay an Hourly Electric Supply Charge posted daily. Merchant Function Charge applies only to customers taking utility supply [ngrid-upstate-service-rates] |
| NYSEG, RG&E, Central Hudson | Monthly utility supply price | Market-based, changes monthly; Central Hudson bills full-service (FS) and retail-access (RA) customers under separate rate codes for each classification [cenhud-rate-codes] |
The consequence: a fixed ESCO price is judged against a moving average. Build a trailing twelve-month supply cost from your bills before comparing offers. The switching guide walks through the mechanics.
NYISO and capacity
New York is a single-state ISO. NYISO runs zonal locational-based marginal pricing for energy, an installed capacity (ICAP) market in which load-serving entities must procure capacity, and transmission congestion contracts for hedging [nyiso-markets]. Capacity requirements are locational: New York City (Zone J), Long Island (Zone K), and the G-J lower Hudson Valley locality carry their own, higher, capacity prices [nyiso-markets].
| Zone group | Where | Capacity cost relative to upstate |
|---|---|---|
| A through F | National Grid upstate, NYSEG, RG&E territories | Lowest |
| G (inside G-J locality) | Central Hudson, Orange & Rockland, part of NYSEG | Elevated |
| H, I | Northern Westchester, Con Edison Westchester | Elevated |
| J | New York City (Con Edison) | Highest on the mainland |
| K | Long Island (PSEG Long Island; no retail access) | High; not shoppable [ny-dps-esco-info] |
This is why an ESCO quote must state whether capacity is fixed or passed through. For a Zone J account the capacity component can move more than the energy component from one year to the next.
Seasonality
New York's climate normals are 6,001 heating degree days and 618 cooling degree days a year [noaa-cag-new-york]. Energy prices in NYISO's day-ahead and real-time markets rise in summer with air-conditioning load and can spike in winter when gas is constrained, and the locational capacity requirement is set and priced by NYISO on its own schedule [nyiso-markets]. On the delivery side, Con Edison's SC 9 carries rate periods and time-of-day options that price summer differently [coned-rates]. A cultivation facility with a flat, year-round load smooths out its own energy cost but still pays the seasonal demand charges; a dispensary with a July afternoon peak pays them at the worst time.
Downstate versus upstate EIA spread
New York commercial customers averaged 23.56 cents per kWh and industrial 10.17 cents in June 2026 [eia-epm-5-6-a]. The industrial average reflects large upstate load; Con Edison SC 9 accounts in Zone J behave differently [coned-rates]. Compare account-level bills, not state averages alone [eia-epm-5-6-a].
2019 Reset Order and mass-market boundary
The PSC December 2019 order in Case 15-M-0127 restricts ESCO products for mass-market residential and small non-residential accounts [ny-psc-reset-order-2019]. Demand-metered cannabis facilities are generally outside mass-market and may sign ordinary fixed, index, or block-and-index contracts [ny-dps-esco-info]. Confirm service classification before assuming unrestricted products [ny-psc-reset-order-2019].
How to read a New York rate
- Find the service classification on the delivery section. It tells you whether demand charges apply and which threshold you are near.
- Separate the supply line. Under utility supply this is the Market Supply Charge or monthly supply price plus the Merchant Function Charge and surcharges [coned-rates-faq]; under an ESCO it is the ESCO's charge, usually on the same consolidated bill.
- Find the billed kW and multiply by the class's per-kW charge to see what demand is costing you. On National Grid SC-2 Demand at $18.93 per kW, a 60 kW peak is about $1,136 a month before any energy [ngrid-upstate-service-rates].
- Divide the total bill by kWh to get your all-in cents per kWh, then compare it to the 23.56-cent state average [eia-epm-5-6-a]. Above it, look at demand and class placement first. Below it, the supply contract is the remaining lever.
- Note the NYISO zone. If you are in J, I, or G, ask what share of the supply line is capacity.
The understanding your commercial utility bill page shows a worked bill line by line, and the state rate comparison tool puts New York next to the other cannabis states.
Frequently asked questions
Is 23.56 cents per kWh what a New York cannabis facility actually pays?
It is the EIA's June 2026 average across all commercial customers in the state, supply and delivery combined. It is weighted toward Con Edison territory. A demand-metered upstate facility typically pays well under it and a small New York City account can pay over it. Use your own bill's supply and delivery lines, not the average, when comparing ESCO offers.
Why is the industrial average so much lower than commercial?
Industrial customers take service at higher voltage, in larger demand classes, and with flatter load factors, so the delivery cost per kWh is far lower and the supply cost is spread over more hours. The June 2026 industrial average of 10.17 cents versus 23.56 commercial shows what class placement and load shape are worth in New York.
What is the default supply price called in New York?
At Con Edison and Orange & Rockland it is the Market Supply Charge. At National Grid, NYSEG, RG&E, and Central Hudson it is the monthly utility supply price. All of them are calculated from NYISO day-ahead market results and change every month, so there is no single posted price-to-compare the way some states publish one.
How do demand charges work across the New York utilities?
Every utility bills a per-kW delivery demand charge on its demand-metered classes. Con Edison SC 9 starts at 10 kW. National Grid's SC-2 Demand charges $18.93 per kW on the current service-rates page and SC-3 uses a minimum for the first 40 kW plus per-kW charges by voltage. Central Hudson's SC 2 measured-demand sub-rates and SC 3 also bill per kW. NYSEG and RG&E figures should be pulled from their current rate summaries before quoting.
Does the season change my New York rate?
Yes, on both sides of the bill. NYISO energy prices and capacity costs peak in summer, and Con Edison's SC 9 has rate periods and time-of-day options that price summer differently. Winter can bring gas-driven price spikes in the energy market as well. A fixed ESCO price removes the monthly variation; it does not remove seasonal demand charges.
Related reading
- New York Cannabis Energy: ESCO Choice, Rates, Utilities, and OCM Efficiency Rules
How New York cannabis licensees buy power: ESCO choice under the PSC, Con Edison vs upstate rates, NYISO capacity zones, and OCM's cultivation energy rules.
- How to Switch Electricity Suppliers in New York: ESCO Enrollment for Cannabis Facilities
ESCO switching for NY cannabis: PSC eligibility, Market Supply Charge benchmark, 2019 Reset Order, enrollment timing, and contract-end rules.
- Con Edison for Cannabis Facilities: SC 2, SC 9, the Market Supply Charge, and ESCO Billing
Con Edison cannabis billing: SC 2 vs SC 9 at 10 kW, demand and Demand Supply charges, Market Supply Charge, and how ESCO supply changes the bill.
- National Grid Upstate New York for Cannabis Facilities: SC-2, SC-3, SC-3A, and ESCO Supply
National Grid upstate NY cannabis billing: 2,000 kWh and 100 kW class triggers, SC-2 Demand, SC-3 tiers, and ESCO supply.
- NYSEG for Cannabis Facilities: SC-2, SC-3, SC-7, and ESCO Supply in Zones C, E, and G
NYSEG cannabis billing in the Southern Tier and Finger Lakes: SC-2, SC-3, SC-7 classes, demand thresholds, ESCO retail access, and NYISO zone context.
- Central Hudson for Cannabis Facilities: SC 2 Sub-Rates, SC 3, SC 13, and the G-J Capacity Locality
Hudson Valley cannabis billing on Central Hudson: SC 2 sub-rates, SC 3 primary, SC 13 transmission, hourly pricing, and ESCO rate codes.
- Demand Charges Explained for Cannabis Cultivators
What a demand charge is, how utilities measure peak kW in 15- or 30-minute windows, why grow rooms get hit hard, how ratchets work, and a worked example.
- Understanding Your Commercial Utility Bill (Line-Item Breakdown)
Supply vs delivery, customer charge, distribution demand, transmission, capacity, riders, power factor, and taxes, with an annotated sample bill for a grow.
- State Commercial Rate Comparison
Compare average commercial electricity prices across cannabis states, with cannabis market status and supplier choice rules pulled from verified state data.
Jason Taken founded Jaken Energy, the commercial energy procurement practice behind this site. He works with licensed cannabis operators in deregulated electricity markets to lower supply rates, manage demand charges, and evaluate efficiency upgrades.
Sources
Inline citations in this article, such as [eia-epm-5-6-a], refer to the entries below. Links open the primary source in a new tab.
- [eia-epm-5-6-a]Electric Power Monthly, Table 5.6.A: Average Price of Electricity to Ultimate Customers by End-Use Sector, by State, June 2026 and June 2025 — U.S. Energy Information Administration. Accessed 2026-09-11.
- [coned-rates]Electric Rates and Tariffs: Schedule for Electricity Service P.S.C. No. 10 — Con Edison. Accessed 2026-09-11.
- [coned-rates-faq]Rates and Tariffs FAQs (Market Supply Charge, Merchant Function Charge, supply choice) — Con Edison. Accessed 2026-09-11.
- [ngrid-upstate-service-rates]Upstate New York Business Service Rates (SC-2, SC-3, SC-3A) — National Grid (Niagara Mohawk Power Corporation). Accessed 2026-09-11.
- [cenhud-rate-codes]Electric Rates and Service Classifications (ESCO portal rate code list) — Central Hudson Gas & Electric. Accessed 2026-09-11.
- [ny-dps-esco-info]Energy Services Company (ESCO) Competitive Market Information — New York State Department of Public Service. Accessed 2026-09-11.
- [nyiso-markets]NYISO Markets (energy, installed capacity and ancillary services) — New York Independent System Operator. Accessed 2026-09-11.
- [noaa-cag-new-york]Climate at a Glance: New York statewide heating and cooling degree days, 1991-2020 base period averages — NOAA National Centers for Environmental Information. Accessed 2026-09-11.