The state Public Service Commission approved new utility rates in January that will raise bills for Con Edison customers across New York over the next three years, with electric rates increasing by about 9% and gas rates by roughly 6%, according to The City.
For the average New York City resident, the electric rate increase will amount to about $4 more per month. Gas customers are expected to see higher monthly bills ranging from approximately $5 to $19, depending on usage. The new rates take effect immediately, the news site reported.
These rates, which are typically reviewed and set on a three-year cycle, will affect Con Ed’s approximately 3.7 million electric customers and 1.1 million gas customers in New York City and Westchester County.
“What the order represents today is a reaction to the world in which we live in, one that is characterized by increasing costs that are far beyond the cost of energy alone, food, housing and inflation are increasing at a rate far faster than wages,” said PSC Chair Rory Christian, noting the outcome was the result of “managing these pressures.”
PSC Chair Rory Christian said the decision reflects the broader economic realities facing households and utilities alike, including rising costs tied to inflation, housing and food, which are increasing at a faster pace than wages. He described the approved order as an effort to manage those pressures while balancing reliability, affordability and long-term infrastructure needs, The City said.
Con Ed initially proposed the rate increases last year, prompting criticism from Gov. Kathy Hochul and several other elected officials. The final increase approved by the commission is substantially smaller than what the utility first requested. Con Ed had sought increases of more than 11% for electric customers and over 13% for gas customers.
According to regulators, rising property taxes were a key driver behind higher electric bills, along with ongoing investments in the infrastructure that delivers electricity throughout the region. The new rates will also help fund programs related to energy efficiency, customer affordability, information technology upgrades, the adoption of electric heat pumps and the repair and replacement of leaking gas pipelines.
The rate increase does not include the cost of the electricity or gas itself, which Con Ed passes through to customers at cost. The company is permitted to earn a return only on its investments in the distribution system. Under the approved plan, Con Ed is expected to earn an estimated return of about 9.4% on those investments, the news site said.
Con Ed is responsible for maintaining the wires, pipelines and substations that carry power from generators to homes and businesses. Regulators pointed to the need to modernize New York’s aging grid, both to withstand the growing impacts of climate change and to meet increasing demand for electricity as more buildings and vehicles transition away from fossil fuels.
Con Ed will also be required to take additional steps aimed at improving customer service and transparency. Utility bills will now itemize the portion of charges attributable to property taxes.
The company will conduct outreach to landlord groups to address nonpayment issues that can result in entire apartment buildings losing service, while also providing information and resources directly to tenants in those situations. Con Ed will also expand language access by offering materials in the city’s 12 most commonly spoken languages other than English.
New York City government supported the rate increase and has previously praised the expanded language access provisions included in the agreement, according to The City.
