Con Edison is proposing another significant rate hike, which could increase the typical gas and energy bills by $154 per month compared to just five years ago, the NY Post reports. This would lead to an additional $1,848 annually for customers compared to what they paid in 2020. The company is seeking approval from the Public Service Commission to raise rates by double digits, which would result in an 11.4% increase for electric bills and a 13.3% jump for gas bills.
This sharp rise in costs has prompted some experts to call on Governor Hochul and state legislators to reassess green energy initiatives, particularly with President Trump pledging to focus on fossil fuels and reduce the push for wind and solar power advocated by the Biden Administration.
“We have to take a breath,” John Howard, a former PSC commissioner, told The NY Post.
“We’re not telling Mr. and Mrs. New York how much this transition to clean energy will cost them.”
Howard criticized both state and city lawmakers for allowing Con Edison to pass property taxes onto customers.
“We have made Con Edison the tax raiser for New York. It’s allowed under state law. It’s usury,” he said.
In 2020, the average monthly bill for a residential customer in New York using Con Edison was $346, which included $176.36 for gas (based on 100 therms) and $170 for electricity (based on 600 kWh). By 2025, the proposed increases would push the average bill to $500, with $289 for gas and $211 for electricity, assuming the same usage.
The company argues that New York City residents tend to use less energy than the statewide average, with the typical household consuming only 280 kWh of electricity monthly. Even so, the proposed changes would raise the average city’s electric bill from $103.24 to $117.37 a month. Those who use gas for heating, averaging 100 therms per month, would see their bills rise by $46.42, bringing the new total to $289.41, which is an increase of 15.7%. Larger utility customers in multi-dwelling units using gas for heating—averaging 2,549 therms per month—could see their bills soar by $529.61 to $5,490.60, marking a 10.7% rise. For those using gas solely for cooking, the bill would climb by $6.59, reaching $48.45, reflecting a 15.7% increase.
These proposed hikes are leaving customers feeling overwhelmed, with many already struggling financially.
“I have a lot of bills to pay — rent, credit cards, grocery. Eggs are $10 a dozen and now you want to add this to it?,” said Kamal Khondkar, 43, who owns a one-bedroom apartment with his wife in the Parkchester section of The Bronx.
“More money going to ConEd means less for everything else. How will we survive? They can do it and get away with it because they know you can’t do without [electricity], you can’t get around it.”
Con Edison attributes the rate hikes to mandates requiring upgrades to the electrical grid, in compliance with the state’s ambitious climate goals under the Climate Leadership and Community Protection Act. This law mandates that New York reduce greenhouse gas emissions by 40% by 2030 and reach 100% zero-carbon electricity by 2040. Additionally, customers are forced to pay city-imposed property taxes on utilities, which are passed along in their gas and electric bills under a law backed by both city and state lawmakers.
“The plan estimates that increasing property taxes on energy infrastructure paid by customers account for nearly 27 percent of the proposed electric revenue increase and about 14.5 percent of the proposed gas revenue increase,” Con Edison stated in its rate hike proposal.
A spokesperson for Governor Hochul emphasized that the governor is focused on thoroughly reviewing the proposed hikes.
“The governor strongly opposes any effort to increase the cost of living for New Yorkers and is directing the Department of Public Service to thoroughly scrutinize the request by Con Edison to raise utility bills,” the spokesperson said.
The Public Utility Law Project, a ratepayer advocacy organization, announced it would push the Public Service Commission (PSC) to reduce the requested rate hikes after reviewing the filing.
“Con Ed customers are already struggling to pay their bills,” said Laurie Wheelock, PULP’s executive director.
The company’s December collections report revealed that 496,007 residential customers were behind on their bills for more than 60 days, accumulating $948 million in overdue payments. Additionally, over 190,000 termination notices were sent, and more than 6,000 accounts were disconnected.
Con Edison does offer an energy affordability program that provides discounts on bills for low-income households, as well as other assistance. The proposed rate hikes, set to take effect next year, are still subject to approval by the PSC, which may reduce the extent of the increase as it has done in previous rate cases.
“In New York utility rate cases are scrutinized as part of the statutorily required 11-month review process to ensure customers and customers’ interests are fully protected,” said PSC spokesman James Denn.
He explained that utility rate cases are not taken lightly and are carefully examined by officials and consumer advocacy groups to identify areas where costs can be reduced.
“Nothing about a utility’s rate case is taken for granted or assumed. For the major electric and gas utilities, the approved rates after this process are nearly always lower than what is requested, due entirely to this time-tested stakeholder review process,” the PSC spokesman said.
The PSC has previously reduced Con Edison’s proposed rate increases significantly—by 60% in 2023 and 75% in 2020. However, in the past, they still approved rate increases, including a 12% increase over three years for electricity rates and an 18.9% increase for gas. Con Edison justifies the proposed hikes as necessary for infrastructure upgrades, including providing additional power for Kennedy Airport’s redevelopment, MTA bus depots, residential and vehicle electrification in the Jamaica network, and the development of a clean energy hub in Brooklyn, as well as replacing outdated pipes.
{Matzav.com}