Short-term energy bill increases unlikely for NY customers

New York energy officials have released a report about the impact of a 10% tariff on Canadian energy products. They believe that energy customers in New York will not see significant bill increases in the short term. This analysis comes in response to concerns about how the tariff, which took effect on March 4, will affect utility costs. The report warns that if Canada retaliates by cutting off energy supplies, the situation could worsen. State officials highlight the uncertainty surrounding the tariff's effects. They point out that while New Yorkers seem insulated from immediate cost increases, the long-term outlook is unpredictable. For customers who rely heavily on Canadian natural gas, the risks are greater. For example, Liberty/St. Lawrence Gas serves about 16,000 customers who depend on Canadian supply. The report estimates a slight annual increase of around $25 for natural gas costs for typical customers. If Canadian supplies are disrupted, these customers may face significant challenges. In Plattsburgh, New York State Electric & Gas serves 5,400 customers with natural gas from Canada. They predict bills could rise by $1.27 a month due to the tariff. However, if Canada halts deliveries, NYSEG has no alternative supply. If the tariff affects electricity, it could add between $42 million and $105 million to annual costs statewide. However, this is not expected to lead to significant bill increases. The report notes the potential for tariffs on non-energy products, like aluminum and steel, to raise construction costs for power facilities in the future. Energy officials are also concerned about the possibility of a trade war. Ontario Premier Doug Ford recently threatened to stop electricity exports to New York in response to U.S. tariffs, although he later retracted that statement. The report warns that losing Canadian energy during peak summer months could pose reliability issues for New York's power system. The state will continue to monitor the situation as further developments unfold.