Long Island Residential Electricity: Averages 18-24¢/kWh, among the highest nationally. NYISO Zone K pricing is structurally constrained by undersea cable limits. Commercial customers can bypass PSEG-LI's volatile Power Supply Charge (PSC) by securing fixed-rate supply from competitive ESCOs.
Nassau and Suffolk counties face the most hostile residential electricity tariffs in New York. If your business is riding the default Power Supply Charge, you are absorbing 100% of PSEG-LI's market volatility.
Unlike standard regulated utilities, PSEG-LI does not own its power plants (LIPA owns the grid, National Grid manages generation). They purchase power on the open wholesale market and pass the costs directly to you via the Power Supply Charge (PSC).
Because Zone K (Long Island) is structurally isolated, it relies heavily on expensive peaker plants and limited undersea cables (Y-49, Neptune, Cross Sound) from the mainland. When extreme weather hits or gas prices spike, the PSC absorbs the shock.
NYISO Locational Based Marginal Pricing
Long Island physically cannot import enough cheap upstate electricity due to severe transmission chokepoints. This creates a permanent pricing premium unique to Zone K and Zone J (NYC).
How a mid-sized injection molding facility bypassed the Power Supply Charge to lock in long-term budgetary certainty.
Operating 24/5 on a Rate 281 tariff, the facility was completely exposed to PSEG-LI's winter 2024 Power Supply Charge spikes. Their effective generation rate hit 14.2¢/kWh in February, driving their total electric bill over $42,000/month.
We executed a 36-month fixed-rate reverse auction targeting Zone K suppliers perfectly hedged against winter basis blowouts. The winning ESCO secured a fixed generation rate of 9.8¢/kWh.
We don't just shop rates; we optimize against the brutal mechanics of Long Island commercial billing.
The most common C&I tariff. Beware the "80% Ratchet Clause"—if your facility hits a massive peak in August, you may pay 80% of that peak demand charge every single month for the next year, even when idle.
Punishes consumption during summer on-peak hours (Mon-Fri, 2 PM - 7 PM). Sourcing retail supply for Rate 285 requires specialized ESCO contracts that respect your specific diurnal load curve.
Because Zone K capacity is so constrained, PSEG-LI pays massive premiums (Commercial System Relief Program) to facilities willing to curtail load during grid emergencies. We monetize this for you.
Find out exactly how much of your PSEG-LI bill is recoverable.
See how much you could save by switching electricity providers
Takes 2 minutes. No physical changes to your home.
Analysis of PSEG-LI's 2026 PSC spikes and Zone K block-and-index strategies.
NYISO PolicyUnderstanding Locational Minimum Installed Capacity Requirements.
Rate CaseImpacts on neighboring territories and state-wide infrastructure costs.