New York, New Jersey residents to see lower electricity rates

Electricity customers in New York City and New Jersey will likely see a reduction in electricity rates this summer, as the many retail electricity providers in the energy-deregulated states benefit from falling natural gas prices, The Wall Street Journal reports.

While the average New Yorker paid $103.96 per month from June to September in 2011, that bill is expected to fall to $102.36 per month this summer. In the Garden State, electricity rates are expected to fall even further. In some of the largest cities in New Jersey, rates could fall by 6.4 percent from a monthly average of $108.45 to $101.49.

"It's definitely good news for customers," said Karen Johnson, spokeswoman for Public Service Electric and Gas.

Swiftly-falling natural gas prices have contributed to lower energy costs in the U.S., after a warm winter and higher production sent prices plunging below $2 per 1,000 square feet for the first time in 10 years.

As the price of energy generation goes down, independent electricity providers will need to respond by lowering their rates as well. Such competition has been seen in states that have passed energy deregulation laws, which, in addition to New Jersey and New York, include Texas, Pennsylvania, Ohio and Illinois.