Why Are PSEG Long Island Electric Bills So High in 2026?
The high bills you see from PSEG Long Island are a result of a gradually increasing Power Supply Charge, which reflects the cost of purchasing wholesale electricity.
In October of 2026, the basic Power Supply Charge on Long Island was set at $13.92 cents per kilowatt-hour, although it was as high as 16.59 cents per kilowatt-hour in March of 2026.
At its peak in March, electricity on Long Island cost $165.93 per 1,000 kWh, before delivery charges, taxes, and other riders itemized on a PSEG LI bill. This figure doesn’t consider time-of-use rates, which can dramatically affect a household’s energy bill. Depending on the Rate Code applied, the Power Supply Charge can be over 200% of the Off-Peak baseline during Peak Hours, or as low as 60% during Super Off-Peak Hours.
What Affects the Power Supply Charge?
The Power Supply Charge is a wholesale Off-Peak baseline rate set by the Long Island Power Authority (LIPA).
PSEG LI adds the Power Supply Charge to your bill, with adjustments for time-of-use. It also adds delivery charges, which cover things like:
- Power Meter infrastructure.
- Infrastructure maintenance/upgrades.
- Line and grid maintenance.
- Customer service and billing costs.
Why Electricity Feels More Expensive in 2026
Electricity costs on Long Island feel higher in 2026 because there was an initial increase at the start of the year, followed by extreme volatility.
There was a significant 13.23% Power Supply Charge spike in February.
Most of Long Island’s electricity generation relies on Natural Gas. Fuel pricing can affect supply charges. Natural gas spiked in February of 2026, but increases are expected to be modest in late 2026 and early 2027. Any major rate hikes in the next few months are likely to come from high energy demand across Nassau and Suffolk County, rather than the cost of generation.
Home Solar Panels Can Protect Your Household from Power Supply Charge Volatility
Home solar on Long Island won’t take you completely off-grid, but it will reduce the impact of volatility on your PSEG LI bill.
- Solar panels produce electricity in the day, reducing the amount of electricity you take from the grid.
- Excess production generates credits on your account to help cover evenings and days with low solar generation.
- If you install solar panels with a battery backup system, you can store electricity to deploy during peak times, further reducing your PSEG LI bill.
Adding solar panels to your rooftop is the most effective way to reduce your utility spending on Long Island. The team at Power Solutions is ready to show you the difference with a free home energy savings evaluation.
With options to lease or install and own solar panels outright, switching to solar can be surprisingly affordable. Request your free estimate online, or reach out to Power Solutions at (631) 348-0001 today.
