New York City, New York Commercial Natural Gas

New York City Commercial Natural Gas: America's Largest Market

New York City—home to over 8 million residents and the nation's largest commercial real estate market—represents the biggest natural gas procurement opportunity in the United States. From Manhattan's gleaming towers to Brooklyn's industrial waterfront, from Bronx healthcare facilities to Queens manufacturing operations, NYC's commercial natural gas demand is massive and diverse.

New York's deregulated energy market means NYC businesses can choose their supplier and optimize costs through strategic procurement.

How Natural Gas Works in NYC

Utility Service Areas

NYC is served by two major utilities:

Con Edison:

• Manhattan (all)
• The Bronx (all)
• Northern Queens
• Westchester County (adjacent)

National Grid:

• Brooklyn (all)
• Most of Queens
• Staten Island (all)
• Long Island (adjacent)

New York Energy Choice (ESCO Program)

The New York Public Service Commission regulates supplier choice:

• Licensed Energy Service Companies (ESCOs) compete
• Consumer protection regulations
• Seamless switching process
• Utility continues reliable delivery

Service Structure

Component	Provider	Competitive?
Gas delivery	Con Ed / National Grid	No—regulated
Gas supply	Utility or ESCO	Yes
Meter reading	Utility	No
Billing	Utility or ESCO	Options available

Cost Reduction Strategies for NYC

1. Compare ESCO Suppliers

NYC's massive market attracts numerous suppliers:

Evaluation Factor	What to Consider
Per-therm rate	Base commodity cost
Fixed vs. variable	Rate structure
Contract length	12-36 months typical
Monthly fees	Additional charges
Exit provisions	Termination terms

Visit NYSERDA and Power to Choose NY for licensed ESCO listings.

2. Leverage Your Volume

NYC businesses can negotiate based on usage:

• Under 25,000 therms: Standard commercial rates
• 25,000-100,000 therms: Custom quotes available
• 100,000+ therms: Direct negotiations
• Multi-property: Portfolio pricing

Large commercial portfolios should request custom pricing.

3. Strategic Timing

Natural gas prices fluctuate. Monitor EIA data:

Lower pricing periods:

• Late spring through summer
• After mild winters
• High storage levels

Higher cost periods:

• Peak heating season (December-February)
• Extreme cold events
• Supply disruptions

NYC's winter heating makes timing critical.

4. Portfolio Aggregation

Multi-property operators benefit from aggregation:

• All Manhattan properties
• NYC-wide portfolios
• Tri-state regional
• National portfolios

Combined volume creates significant leverage.

Industries We Serve in NYC

Commercial Real Estate

NYC's massive real estate sector:

• Class A office towers
• Residential high-rises
• Mixed-use developments
• Multi-tenant management

Explore: Multi-Tenant Natural Gas Solutions

Hotels & Hospitality

World-class hospitality market:

• Luxury hotels
• Business hotels
• Conference centers
• Restaurant operations

See: Hotel Natural Gas Solutions

Restaurants

NYC's legendary dining scene:

• Fine dining establishments
• Multi-location restaurant groups
• Commercial kitchens
• Fast-casual operations

Related: Restaurant Natural Gas Solutions

Healthcare

Major healthcare systems:

• NYU Langone Health - Multi-campus system
• Mount Sinai Health System - Major network
• NewYork-Presbyterian - Largest system
• Memorial Sloan Kettering - Specialty
• Hospital networks and clinics

Explore: Healthcare Natural Gas Solutions

Higher Education

Universities and colleges:

• Columbia University
• New York University
• CUNY System
• Educational campuses

See: Educational Facility Natural Gas Solutions

Manufacturing

Brooklyn and Queens industrial:

• Manufacturing facilities
• Industrial operations
• Food processing
• Distribution centers

Related: Manufacturing Natural Gas Solutions

NYC Market Specifics

Manhattan

Highest commercial density:

• Class A office concentration
• Premium hotels
• Restaurant density
• High-rise residential
• Con Edison service

Brooklyn

Industrial and commercial growth:

• Waterfront development
• Tech sector growth
• Industrial conversion
• National Grid service

Queens

Diverse commercial base:

• Manufacturing heritage
• Industrial parks
• Warehouse operations
• Mixed utility service (Con Ed / National Grid)

The Bronx

Healthcare and industrial:

• Major healthcare facilities
• Industrial operations
• Logistics
• Con Edison service

Staten Island

Suburban commercial:

• Retail centers
• Healthcare facilities
• Industrial operations
• National Grid service

Compare New York Cities

Coordinate across New York locations:

• Buffalo - National Fuel Gas territory
• Rochester - RG&E territory
• Yonkers - Con Edison territory
• Syracuse - National Grid territory
• Albany - National Grid territory
• New York statewide

Understanding Your NYC Gas Bill

Bill Components (Con Edison Example)

Your utility bill includes:

1. Delivery Charges (Utility)

• Customer charge (fixed monthly)
• Distribution charge (per therm)
• Infrastructure charges
• System benefit charges
• Taxes and surcharges

2. Supply Charges

• Gas commodity cost (per therm)
• From utility or ESCO
• Shopping here creates savings

Rate Classes

Con Edison commercial service classifications:

Class	Description
SC 2	Firm gas service
SC 3	Large volume gas
SC 4	Interruptible service

National Grid has similar commercial classifications.

Contract Strategies for NYC

Fixed Rate Contracts

Essential for:

• Commercial real estate budgeting
• Healthcare operations
• Hotel operating budgets
• Winter price protection

Standard terms:

• 12, 24, or 36 months
• Locked per-therm rate
• Early termination fees

Variable/Index Rates

Consider when:

• Flexible budgets
• Market monitoring capability
• Shorter-term needs
• Summer operations

NYC considerations:

• Winter exposure significant
• Budget certainty often paramount
• Large buildings need predictability

NYC Recommendations

Given NYC's commercial profile:

• Fixed pricing provides valuable protection
• Portfolio pricing for multi-property operators
• At least partial fixed recommended
• Monitor market for opportunities

Learn more: Understanding Natural Gas Deregulation

Energy Efficiency in NYC

Con Edison Programs

Con Edison offers commercial efficiency programs:

• Equipment rebates
• Custom project incentives
• Energy assessments
• Demand response programs

Visit Con Edison Business for current programs.

National Grid Programs

National Grid commercial programs:

• Equipment rebates
• Custom incentives
• Energy assessments
• Technical support

Visit National Grid Business for programs.

NYC Local Laws

NYC building performance requirements:

• Local Law 97: Emissions limits
• Local Law 84: Benchmarking
• Building performance standards
• Energy efficiency compliance

Get Your Free NYC Analysis

Natural Gas Advisors helps New York City businesses optimize natural gas costs:

1. Bill Analysis: Review your current utility bills
2. ESCO Comparison: Compare licensed energy suppliers
3. Contract Review: Evaluate terms and opportunities
4. Negotiation Support: Secure competitive rates
5. Portfolio Management: Multi-property coordination

No cost to businesses—suppliers compensate us directly.

Whether you manage a Manhattan office tower, a Brooklyn restaurant group, a Bronx healthcare facility, or any NYC commercial property, New York's deregulated market offers real savings.

If you can make it here, you can make it anywhere. Let us help you make your energy costs work. Contact Natural Gas Advisors today for your complimentary NYC energy analysis.