03/04/2026
I’ve been seeing a lot of posts about smart meters and higher electric bills, so I figured I’d break down a few things that might help people understand what’s going on.
First, the smart meter itself does not increase the cost of electricity. It simply records usage digitally and sends the reading automatically instead of someone physically reading the meter. Yes i kept my old meter i think a slower meter can definently help (personal opinion) but it could be the opposite as well with the extra fee associated with keeping it.
However, there are several reasons people may see higher bills around the same time these meters are installed.
1. Time of Use Billing (Day vs Night Rates)
Some customers are placed on or offered time of use plans where electricity costs different amounts depending on when it is used.
For example, electricity during peak hours in the afternoon and evening can be significantly more expensive than overnight hours.
If you run large loads during peak times such as air conditioning, electric dryers, pool pumps, freezers, EV chargers, or space heaters, your bill can increase.
A good place to check is page 3 of your bill. If you see lines for On Peak kWh and Off Peak kWh, you're likely on that type of rate plan.
2. Smart meters are extremely accurate
Older analog meters sometimes slowed down over the years. Smart meters measure usage very precisely, so in some cases homeowners are simply seeing their actual consumption for the first time.
3. Budget billing adjustments
Balanced or budget billing plans adjust every few months based on actual usage and current electricity prices. If prices rise or usage increases, the monthly payment will change even if your habits didn't.
4. Supply costs have increased statewide
Your electric bill has two major parts.
Supply – the electricity itself
Delivery – maintaining power lines and infrastructure
Many recent increases across New York have come from supply price increases, which utilities pass through from the energy market.
Three things most people don’t realize about electricity demand right now
1. Energy demand is exploding from data centers and AI
The amount of electricity needed for large data centers has skyrocketed in the last few years. Artificial intelligence systems require massive computing power and those servers run 24 hours a day.
A single large data center can use as much electricity as tens of thousands of homes.
2. Electrification is increasing demand
More homes are switching to electric vehicles, electric heat pumps, induction cooking, and electric water heaters.
All of this increases demand on the grid, especially during peak hours.
3. Natural gas still drives electricity prices
Even though renewable energy is growing, a large portion of electricity is still generated using natural gas.
When natural gas prices rise, the cost of producing electricity rises as well.
What homeowners can do..
Look at the kWh usage on your bill, not just the dollar amount.
Compare your current usage to the same month last year.
Check whether you're on standard billing or time of use billing.
If you are on a time of use plan, running things like laundry, dishwashers, or EV charging overnight can sometimes reduce costs.
I'm not affiliated with National Grid. Just sharing some information because there’s been a lot of confusion about this lately.
And remember…
If electricity were free, we'd all be outstanding citizens. ⚡
