Gov. Kathy Hochul on Feb. 11 called on the New York State Public Service Commission (PSC) to reject the Con Edison rate hike requests that ask for an increase of 11.4% in electricity rates and 13.3% for gas. She said that the PSC needs to pay close attention to the rate case filed on Jan. 31 by Con Ed.
Rory Christian who heads the PSC and also the Department of Public Service (DPS) was told in a letter from Hochul to “act in the best interest of New Yorkers.” Hochul directed that the DPS conduct an audit of utility management compensation in New York. According to Hochul’s office, the audit would focus on compensation for non-union utility management employees statewide and the results would be used when reviewing future rate cases and evaluating the claimed financial condition of utilities.
“The cost of living is too damn high and New Yorkers need more money in their pockets,” Hochul said. “Of course we need safe, reliable energy sources to power our homes and businesses. But utility companies shouldn’t be jacking up costs unnecessarily – especially if they’re paying their own staff too much.”
Con Ed filed the 2025 rate cases seeking electric rate increases that would total more than $1.6 billion for the 12-months ending Dec. 31, 2026. That increase would apply to rates in the portion of the bill covering the delivery charges for electricity. The rate for the electricity itself can vary up or down from month to month.
Con Ed said that new investments in electric system infrastructure, property taxes, depreciation, and employee pensions are among the prime drivers of the need for higher rates. Con Ed also is looking for an increase to its return on equity to 10.1%, which would give it an additional $190 million.
Con Ed’s gas rate case is seeking an increase of approximately $440 million in what customers would pay to have their gas delivered. Gas rates, like those for the electricity itself, can vary from month to month. The company also is asking for a return on equity of 10.1% for the gas side of the business that it says will bring in an extra $66 million for the year.
Con Ed’s annual report with its financials for 2024 is not due out until Feb. 20. For 2023, Con Ed reported net income of $1.6 billion on operating revenues of $13.5 billion.
When the new rate cases were filed, Matthew Ketschke, president of Con Ed, said, “Our top priority is to deliver safe, reliable, and affordable energy to our customers. Our proposed investment plan will support critical work and investments in reliability, resiliency and clean energy infrastructure to meet the high expectations of our customers, who depend on us to deliver the most reliable electric service in the nation.”
