Electric Rates for Summer 2025 and Beyond
With the peak of summer upon us, electricity prices are once again at the forefront of every property manager’s mind. Following a mild winter and a relatively stable spring, NYISO Zone J (New York City) has experienced moderate but consistent increases in wholesale electricity prices through July.
While average pricing has remained manageable — between $0.04 and $0.06 per kWh — short-term volatility continues to occur during heat waves when cooling demand surges. These daily spikes can push prices above $0.10 per kWh, particularly during late-afternoon peak hours when grid strain is highest.
In general, energy markets in 2025 have been characterized by stability rather than sharp movement. Natural gas production remains strong, storage inventories are well above average, and renewable energy integration continues to expand across the Northeast. These factors have collectively helped keep power generation costs in check, even amid occasional summer price surges.
Looking forward to late 2025 and early 2026, the overall trend points toward steady-to-slightly-higher electricity pricing. Key drivers include:
Gradual increases in capacity costs,
Continued investment in transmission and reliability projects, and
Ongoing decarbonization initiatives that affect market structures and generation portfolios.
Commercial and multifamily properties with energy supply contracts expiring this year should begin reviewing renewal options now. Entering the fall with a proactive procurement strategy can help lock in more favorable rates before winter demand and pricing return.
Aurora Energy Advisors continues to monitor electric market developments closely and can assist clients with contract renewals, market timing, and risk mitigation strategies to ensure budget certainty.
Market Analysis
Electricity
NYISO Zone J wholesale electricity prices averaged $0.05 to $0.06 per kWh in July, driven by multiple heat waves and elevated cooling loads. Daily peaks above $0.10 per kWh occurred during periods of extreme humidity.
Natural Gas
Natural gas futures held steady between $2.40 and $2.60 per MMBtu, supported by robust production and storage levels. Summer weather patterns have not significantly disrupted gas-fired generation or delivery infrastructure.
Crude Oil
Crude oil traded in the $78–$84 per barrel range throughout July. Seasonal travel demand and OPEC+ supply discipline continue to underpin moderate pricing strength heading into fall.
💡 Mitchell’s Tip: Start evaluating electricity contract renewals early — securing favorable rates before winter volatility returns can lead to meaningful savings.
