Con Edison Rate Increases Approved in New York
People in New York are feeling the pinch again.
Utility regulators in the state have approved rate hikes for Con Edison, affecting both electric and gas services, amounting to a 10.4 percent increase over the next three years—just when residents are already stretched thin.
Starting January 1, the first increase for electricity will be 3.9%. For an average New York City resident using about 280 kWh per month, that translates to roughly an additional $4 on their monthly bill.
Next year, rates will go up by another $3.55 (3.3%), followed by an increase of about $3.58 (3.22%) in 2028, as laid out by the state Public Service Commission.
For typical residents in Westchester County, who use around 425 kWh monthly, the initial increase will be $5.27 or 3.6% this year, $4.94 or 3.3% next year, and an additional $4.95 or 3.2% in 2028. This adds up to a total increase of about 10.1% over three years.
On the gas front, those using about 100 therms monthly will see their bills go up by $5.73 or 2.4% this year, then just under $20 next year, before another rise of $15.08 or 5.6% in 2028. Cumulatively, this results in a 15.8% hike.
Rory Christian, the PSC Chairman, spoke about the need for increased revenue to maintain and boost production capabilities to ensure reliable service. He emphasized that the rationale behind the rate increases was grounded in legality rather than politics.
The commission considered their decision a win, given that the final rate increase was notably less than what Con Edison initially proposed.
Christian commented on the joint proposal as meeting the necessary legal standards that would allow Con Edison to provide safe and adequate service at reasonable rates.
He noted, “This three-year rate plan is in the public interest. It looks forward, aiming to benefit customers while keeping affordability a primary focus.”
Support for the unanimous decision came from other commissioners as well. Dennis Sheehan mentioned that it represents a significant reduction and is in line with inflation. James Alesi also weighed in, noting the necessity of these adjustments.
It’s interesting to think about how state and local taxes play into Con Edison’s costs—combining for roughly a third of their expenses. Regulators noted that these taxes are set by elected officials who could adapt the tax structure to ease some burdens on customers.
