As the chill of winter settles in Lake Placid, residents are bracing themselves for significantly higher energy bills next month. The village’s treasurer, Mindy Goddeau, has alerted the community about the “astronomical” costs stemming from cold weather, increased demand, and rising market prices. With electricity primarily sourced from the New York Power Authority, which harnesses hydropower from Buffalo, the village faces challenges when usage exceeds its set allotment. This leads to purchasing additional power from the market, further driving up costs.
Residents can expect to see a noticeable spike in their bills due to the Purchase Power Adjustment (PPA), which transfers incremental power costs and delivery charges to consumers. Factors contributing to this increase include soaring energy prices and delivery costs regulated by the New York Independent System Operator (NYISO). The growing demand for electricity, fueled by the rising popularity of electric vehicles and heat pumps, has outstripped supply as older power plants retire quicker than new projects can come online.
Understanding the Power Market
The NYISO oversees the electric grid for nearly 20 million New Yorkers and plays a crucial role in maintaining grid reliability. Formed in 1999, its roots trace back to the New York Power Pool, established after the Northeast Blackout of 1965. While NYISO does not generate electricity or own transmission lines, it operates a wholesale energy market and a capacity market known as the Installed Capacity (ICAP) market.
Capacity management is vital for ensuring compliance with grid reliability rules established by the New York State Reliability Council (NYSRC). Twice a year, NYISO hosts seasonal capacity auctions, where market participants secure resources to meet peak demand. In these auctions, supply resources are listed from lowest to highest cost, influenced by demand and market conditions. Monthly spot auctions also allow participants to address urgent needs or generator outages.
Current Trends and Future Implications
The situation in Lake Placid reflects broader trends in energy consumption and supply challenges across New York. The NYISO’s 2025 Power Trends report indicates a net loss of capacity in the system since 2019, raising concerns about long-term reliability. Power usage has surged dramatically, with figures showing an increase from 11.6 million kWh in December 2024 to 26.5 million kWh in February 2026.
Transportation costs for power have also escalated, with winter 2023-2024 rates ranging from 5 to 9 dollars per megawatt, climbing to around 12 or 13 dollars per megawatt in subsequent winters. Goddeau has urged residents with concerns about their energy bills to reach out to the village for available payment plans to help avoid disconnection during these challenging months.
As Lake Placid prepares for these elevated energy costs, understanding the dynamics of the power market and the roles of organizations like NYISO can help residents navigate this turbulent energy landscape. For more in-depth insights, check out the full article on the Adirondack Daily Enterprise [here](source 1) and learn about NYISO’s operations in the detailed guide available [here](source 2). It’s essential for residents to stay informed and proactive about their energy usage and bills during this challenging season.