An agreement has been reached to allow Con Edison a 2.8% hike in electric rates and a 2% hike in gas rates from Jan. 1, 2026 through the end of 2028 according to the Westchester Municipal Consortium (WMC). The WMC consists of 40 local municipalities that banded together and become a party to the electric and gas rate case being decided by the New York State Public Service Commission (PSC). According to WMC, the three-year settlement agreement, known as a Joint Proposal, has been formally reached between Con Edison, the PSC staff, WMC, and other parties.
The WMC says it will not oppose the Joint Proposal, which requires formal approval by the PSC. The PSC will continue to receive comments on the rate case until Nov. 21.
Wording in the Joint Proposal says, “The Westchester Municipal Consortium will also not oppose this negotiated Proposal, which substantially reduces the Company’s initial rate proposals and includes provisions sought by the Westchester Municipal Consortium.”
Con Edison originally asked for an electric rate increase of 13.4% and will be granted 2.8% on the total customer bill under the settlement. On the gas side, the original proposal of a 19% increase has been reduced to 2% on the total customer bill. The agreement spans January 1, 2026, through December 31, 2028. Con Ed will be allowed to raise its rates in each of the second and third years by an additional 2.8% for electric and 2.0% for gas.
The WMC negotiated a provision in the agreement that requires Con Edison leadership, including senior engineering and operations staff, to meet each year with Westchester municipalities to review capital project plans and compare investment levels in Westchester versus New York City. The meetings will also address storm preparedness, double-pole removal, street lighting, and the impact of the amounts of electricity used by data centers on the local grid.
Con Edison agreed to conduct an informational analysis comparing the relative costs of its underground network wiring system, which predominates in New York City and its overhead wiring in Westchester County and on Staten Island. This study will help determine whether Westchester is paying for costs of the underground system in New York City or vice versa. Any cross-subsidization costs between regions would be disclosed prior to Con Ed’s next rate filing.
“While the reductions do not go as far as we had proposed, they are a substantial move in the name of affordability, and the requirements for more disclosure and transparency on capital projects and the costs of overhead vs. underground systems are major gains for our county,” said Joel Dichter, counsel for the WMC. “This outcome reflects how much can be accomplished when Westchester’s municipalities stand together for a common goal.”
The WMC is planning to prepare and submit formal comments on the Joint Proposal to the PSC. The PSC will conduct a hearing to evaluate the settlement’s terms before issuing a final decision on Con Ed’s rates.
Hastings-on-Hudson Mayor Nicola Armacost, who is president of the Westchester Municipal Officials Association said, “There is no doubt that Westchester’s municipalities banding together had a substantial impact on the results. This collaboration ensured our communities were heard at the state level and will continue to give us a voice in how utility investments are made in Westchester.”
Greenburgh Town Supervisor Paul Feiner said, “I am pleased that Greenburgh participated in the consortium. Working together with other local governments in Westchester our coalition was successful in getting results for our residents. Local governments in Westchester should continue to look for additional ways we can work together.”
