A group of New York state legislators is calling for a major overhaul of the state’s Public Service Commission (PSC) in the wake of the PSC’s approval of rate increases for Orange & Rockland Utilities, which is owned by Con Edison. Rate cases asking for increases in electric and gas rates for Con Edison customers in the New York Metro area are pending.
The PSC allowed no increase in Orange & Rockland’s electric revenues for the first year instead of the $18.1 million increase requested. For gas, it allowed $10.5 million increases in the first, second and third years. For electric, the PSC approved a $17.7 million increase in each of the second and third rate years.
In the wake of the Orange & Rockland approval, State Sen. James Skoufis, Democrat of Orange County and Sen. Shelley Mayer, Democrat of Westchester, joined colleagues in calling for an immediate overhaul of the embattled commission. Senators Simcha Felder, Nathalia Fernandez, Andrew Gounardes, Brad Hoylman-Sigal, John Liu, Rachel May, Christopher Ryan, Lea Webb, Pete Harckham, and Jeremy Cooney were among the others joining with Skoufis and Mayer in their criticism of the PSC.
“The Public Service Commission is failing to meet its responsibility to set delivery rates for gas, electric, and other regulated utilities that are ‘fair, just, and reasonable.’ If the PSC cannot fulfill its primary responsibility, it must be held accountable and work towards a solution that prioritizes New Yorkers’ rights to stable utility rates that are as low as possible,” Mayer said.
Skoufis said, “The Commission continues to exercise little more than a wrist-slap for greedy utility companies: at the same time that O&R is crying poverty to the PSC, they’re reporting corporate returns of 7 to 10%. I’m sick and tired of watching my constituents be taken for a ride by these fat cats, and the legislature must act now to protect consumers.”
Sen. Pete Harckham added, “Skyrocketing utility bills are placing an unbearable strain on community members who can no longer afford these unreasonable rate hikes. It’s time to reexamine and modernize the rate-setting process. Our top priority must be providing affordable service to ratepayers. These bills are a step forward in improving the rate-setting process with greater transparency and keeping utility costs down for community members so they don’t have to choose between meeting basic needs and paying their utility bills.”
Westchester’s delegation in the State Assembly has sent a letter to Rory Christian who chairs the State Department of Public Service and the Public Service Commission urging rejection of Con Edison’s current proposal to increase electric rates by 11.4% and natural gas rates by 13.3% in 2026.
“This year’s proposed increase is unconscionable in light of Con Edison’s substantial earnings evidenced by an 11.8% increase in third quarter per share earnings and Con Edison’s CEO’s compensation package exceeding $16 million,” the Westchester delegation said. “It is both unfair and unsustainable for those who have no other choice but to pay for Con Edison’s service. Rather than attempting to squeeze everyday New Yorkers yet again, Con Edison must either economize or self-fund a greater portion of the costs for its planned maintenance and improvement projects.”
