Con Ed rate hike OK’d for 3 years
ALBANY — Con Edison customers are in for a bit of a shock.
The state Public Service Commission on Thursday approved a $1.2 billion, three-year rate hike for Con Ed’s gas and electric customers despite the utility’s recent less-than-stellar service record.
The panel touted the outcome as a win, claiming the final increases were a fraction of what the company had initially proposed.
“The progressive plan we have adopted — endorsed with stakeholder support by environmental groups, large business customers, and municipalities in the region — benefits customers and includes provisions that further important state and Commission objectives,” said PSC chairman John Rhodes.
Yet the hike drew condemnation from all corners as AARP and even the NYC Democratic Socialists of America denounced the decision.
“Today, Con Ed’s millionaire executives got the green light for three more years of business-as-usual energy politics, promising New Yorkers a future with higher costs, more fossil fuel infrastructure, and more draconian shutoffs,” the socialist group said.
AARP aimed its ire directly at Gov. Cuomo.
“New York State has an energy affordability problem, and today it got worse with the actions of the PSC,” AARP New York State Director Beth Finkel said. “AARP was hoping Governor Cuomo would weigh in as he has in the past when Con Ed ratepayers and other New Yorkers have faced a massive hit like this to their wallets, but he said nothing — very disappointing.”
The commission approved a first-year electric rate increase of $113.3 million, or 3.1%, and a first-year gas rate increase of $47.2 million, or 6.7%. In 2021 and 2022, the company will see 3.8% and 3.3% electric rate hikes, respectively.
Gas rates in the second year will increase 7.3% and 6.5% in 2022.
That means a residential electric customer using 600 kWh per month will see an average total monthly bill increase of $5.46, or 4.2%, this year. Next year, the same bill will go up another 4.7% and an additional 4% starting January 2022.
A residential gas heating customer using an average of 100 therms per month will see an average monthly bill increase of $11.37 this year, or 7.5%, a $14.44 increase in the second year, or 8.8%, and a $12.86 increase in the third year, or 7.2%.
The increases will be a bit higher for Westchester residents and commercial businesses, who use more power.
Problems plagued the utility last year as a blackout struck a large swath of Midtown Manhattan that prompted Cuomo to threaten its license, and the company intentionally shut off power to some Brooklyn neighborhoods during a heat wave.
Con Ed, which sells electricity in the five boroughs and in Westchester County as well as natural gas in Manhattan, the Bronx, parts of Queens and most of Westchester, placed the blame for the hike on city property taxes and praised the new plan.