The New York State Public Service Commission (PSC) on Jan. 22 approved electric and gas rate increases for Con Edison covering the next three years. The rate hikes that were approved are about 90% less than what the utility had asked for.
Con Edison is New York’s largest electric and gas utility, with more than 3.6 million electric customers and 1.1 million natural gas customers in New York City and Westchester County.
Approved was the so-called Joint Proposal that had been negotiated by the Westchester Municipal Consortium and other entities.
The adopted Joint Proposal will result in electric revenue increases of $234 million in the first year, $409.7 million in the second year, and $421.1 million in the third year. This amounts to rate hikes of 2.8% percent per year, or 4.4% increase in delivery revenues. The gas increases will be $27.5 million in the first year, $68.8 million in the second year, and $70.3 million in the third year, with total revenue increases of 2.0% and delivery revenue increases of 2.8% per year. The rate hikes will guarantee that Con Edison receives a return on equity of 9.4%.
“The adopted joint proposal meets the legal requirement that the company continue to provide safe and adequate service at just and reasonable rates,” said Public Service Commission Chair Rory M. Christian. “The three-year rate plan is in the public interest. It is a forward-looking plan that benefits customers and includes provisions that further important state and commission objectives, while keeping customer affordability first and foremost in mind.”
The PSC says that the approved rate hikes for the next three years are approximately the rate of inflation.
Con Edison had been seeking to increase its electric delivery revenues by approximately $1.6 billion (an 11.3% increase in total revenues or 17.9% increase in base delivery revenues), and its natural gas delivery revenues by approximately $349 million (a 10.5% increase in total revenues or 14.9% increase in base delivery revenues).
State Senators Shelley Mayer, Robert Jackson, and Nathalia Fernandez, Assembly Members Chris Burdick, Dana Levenberg, and MaryJane Shimsky signed onto a joint statement reacting to the PSC decision.
“In approving this rate hike, the Public Service Commission failed to uphold its duty to protect ratepayers and act in the public interest,” they said. “The consequences of this decision are devastatingly real – not just ‘emotional’ or ‘political,’ as a commissioner suggested during their commentary. People will be forced to choose between heat and healthcare. Seniors will skip medications. Families will cut back on necessities just to pay the bills.
“We are deeply disappointed by this decision. It reflects a profound failure of responsibility. We will continue to fight alongside our colleagues in the Legislature, and the Governor, using every legislative tool available to protect New Yorkers and to hold both utilities and regulators accountable. The public deserves better, and we will not stop demanding it.”
