New York City households and businesses are poised to see lower utility bills as the plunge in oil prices reduces fuel costs for some generators.
Wholesale power for delivery to the city in January, when heating demand is highest, has tumbled 23 percent over the past six weeks. Crude has dropped by half since June amid a global supply glut, pulling down the cost of fuel oil used in some power plants. At the same time, record production and mild weather sent natural gas futures to a two-year low Monday.
“It’s great for the consumer,” said Kate Trischitta, director of trading at Consolidated Edison Inc.’s wholesale power unit. “It means lower electricity prices across the board.”