CBS6 Albany You Paid For It: Rising energy bills expose NY’s energy paradox

February 2nd, 2026

by Briana Supardi Fri, January 30, 2026

Watch on CBS Albany here.

LAKE GEORGE, N.Y. (WRGB) — If your energy bill prompted a double take, you’re not alone — many across the Capital Region have shared that they are seeing double- to triple-digit increases in their bills this month.

So what’s driving these dramatic spikes? Are the state’s clean energy goals contributing to the higher costs?

The answer isn’t black and white — ultimately, the state is in an energy paradox where customers are stuck paying for the future while still paying for the past.

In addition to a colder winter this season compared to years past, rising energy costs across New York are being driven by a complicated mix of volatile natural gas prices, growing demand from electrification, and the cost of upgrading aging infrastructure.

Despite New York’s aggressive push toward clean energy, about half of the state’s electricity is still generated using natural gas, according to the New York Independent System Operator (NYISO), the organization responsible for managing New York’s electric grid and its competitive wholesale electric marketplace.

This ultimately leaves the state caught in an energy paradox.

That reliance matters because natural gas prices can fluctuate sharply, particularly during the winter when heating demand spikes.

“When natural gas use goes up, like it does in the winter, the price of electricity will go up as well,” said Patrick Stella, spokesperson for National Grid, citing basic supply-and-demand dynamics.

Limited pipeline capacity into New York further constrains supply, driving prices higher when demand surges.

At the same time, New York is in the midst of a sweeping energy transition under the state’s Climate Leadership and Community Protection Act, or CLCPA. Homes are switching to electric, electric vehicles are becoming more common, and overall electricity demand is rising — even as supply remains heavily dependent on natural gas.

“There is no doubt that the CLCPA is already having a substantial impact on some customers across New York State,” said Justin Wilcox, Executive Director of Upstate United, a business and taxpayer advocacy coalition.

Wilcox also pointed to restrictions on new natural gas pipeline development as a factor driving up costs, arguing that limiting supply has contributed to higher prices during periods of peak demand.

According to NYISO, electrification is increasing electricity demand faster than the grid was originally designed to handle, requiring infrastructure upgrades to maintain reliability.

Stella said much of the equipment being replaced is decades old.

“There is a lot of work going on in the state to upgrade transmission lines and electric service,” Stella said. “A lot of this equipment is aged — 50 to 60 years old — and much of it needs to be replaced.”

Even when customers cut back on usage, delivery charges remain high because they are ultimately paying for the grid itself — the infrastructure upgrades, the poles, substations, and the crews who maintain them.

Those upgrades, along with storm hardening and reliability improvements driven by more extreme weather, are contributing to higher delivery costs that appear on customers’ bills.

Energy analysts say the factors impacting electricity prices include rising demand from electrification, aging infrastructure upgrades, and the need to ensure reliability.

At the same time, NYISO warns that continued reliance on natural gas exposes customers to ongoing price volatility — the same volatility driving higher bills today. Cleaner energy sources such as renewables do not fluctuate in price the way fuelbased generation does.

In the long run, NYISO says diversifying how New York generates electricity could help stabilize — and potentially lower — energy costs. But during the transition, customers are paying for both the existing system and the one being built.

So are New York’s clean energy goals driving up energy bills?

JOIN THE CONVERSATION (14)

Experts say yes — in the short term, they can. Electrification and infrastructure upgrades carry real costs. But remaining dependent on volatile natural gas also comes with a price — and that cost is being felt now.