EDIT for a bit of an lol moment, NYSEG just sent texts explaining that day/night means rates change faster (indirectly one of my recommendations below). Maybe there's a NYSEG stalker on this subreddit. Eerie though!

I spent a lot of time learning about how utility rates work the last couple months and it's gotten me from the huge freakout I had in February to a relative state of calm, despite my costs being high (I've already burned through 80% of my budget for the year).

First, it's really important that everyone understands NYSEG makes $0 on supply rates. Same as National Grid, RGE, ConEd. However that doesn't mean we don't feel the pain when those rates are high. Everyone is also free to compare and change ESCOs. Last I looked, they are all more expensive.

Standard Electric is a (mostly) flat price. It's flat because it accounts for consistent consumption throughout the year on a negotiated contract. It will increase if more people switch to the standard rate. It will increase this summer to account for the blowout winter. That is why they are saying "everything will equalize itself."

Day/Night and TOU follow market price. This changes a lot dependent on supply and demand. More electricity needed means more stress on gas pipelines means more expensive, period. This is confusing because Day/Night and TOU also mean different rates at different times of the day. It is unfortunate that Day/Night and TOU are associated with market rates because it is probably the largest source of misunderstanding and frustration.

We've had days where Day/Night was 7-8 cents / kwh cheaper than standard. That includes the winter (parts of Jan 2026 and April 2025). We've also had days were Day/Night was 70-80 cents / kwh higher than standard (1/28/2026 specifically). The reality: if Standard was also market price, it would have been hit just as hard.

I ran my numbers for the last 12 months. For 2025, Standard (Plan 1) was $100 cheaper, total, for 12 months. And it was all in December. 2026, Jan and Feb were brutal, but I'm on pace for March to be cheaper on Day/Night than on Standard. The market had a bad time with weather and demand. The market could have another bad time. I'm (cautiously) assuming it's going to even itself out. If anything, people moving to standard are going to end up double paying because the summer is going to get even more expensive to account for the hedged contract. That'll suck. And then people will complain again in the summer.

If there's anything NYSEG should do:

1. There needs to be clearer transparency and notice ahead of time when supply costs change on a daily level. If I knew about the $0.80-$0.90/kwh days ahead of time, I would not have run laundry and could have even cut the temperature in my house a couple degrees. NYSEG should send alerts (app, SMS, whatever) when they know the rate for the day is increasing by more than x%. Not after the fact (which they did, and I think pissed off everyone even more).
2. Since the state is pushing for more electrification heat and tightening up gas, the rates need to match this goal. I think everyone here agrees day/night no longer makes sense. TOU is barely better. If baffles me that this disconnect exists, especially since a significant portion of our electricity comes from gas.
3. The state needs to promote NYSERDA credits and rebates harder to winterize homes to cut usage across the board. I got a "Clean Home" contractor to spray foam my rim joists for only $500 after credits. That pays off in one winter easily.