Con Edison Has Filed to Increase Electric Rates $430.7 Million to Retail Customers and $54.7 Million to New York Power Authority Delivery Service Customers

On January 31, 2019, Con Edison (or the “Company”) filed with the New York State Public Service Commission (“PSC”) a proposal to increase its electric delivery service rates by $485.4 million commencing January 1, 2020. If approved by the PSC, the $485.4 million increase would be approximately 4.9 percent inclusive of projected supply costs, or 8.6 percent on a delivery rate basis, allocated as follows: the rates charged to retail customers purchasing service from Con Edison under the Schedule for Electricity Service, P.S.C. No. 10 – Electricity, would be increased by $430.7 million (a 4.9 percent increase on a total bill basis, or a 8.6 percent delivery rate increase); and the rates charged to the New York Power Authority (“NYPA” or “PASNY”) for delivery service to PASNY customers under the Schedule for PASNY Delivery Service, P.S.C. No. 12 – Electricity, would be increased by $54.7 million (a 4.3 percent increase on a total bill basis, or an 8.4 percent delivery rate increase). The Company has also filed for a gas rate increase, which is described in a separate newspaper notice today. In addition to electric delivery charges and other applicable surcharges, these bills include projected electric supply charges and the average revenue taxes in effect for the various municipalities. Sales taxes and the effect of changes outside the base rate level approved by the Commission, such as the tax sur-credit, Efficiency Transition Implementation Plan (“ETIP”) cost recovery transferred from the Systems Benefit Charge (“SBC”) to base delivery rates, and Revenue Decoupling Mechanism Adjustment revenues, are not included in this table. The summer billing period is the four-month period from June 1 to September 30. The winter billing period is the balance of the year. If a customer receives a bill that includes periods before and on and after the date of the rate change, rates will be prorated depending on the number of days of service before and on and after that date. Listed below are the ranges of percentage changes in customers’ annual bills, which depend upon the amount of electricity used, for other customer classes: The Company proposes to increase customer charges for SCs 1, 2 and 6, including Voluntary Time-of-Day (“VTOD”) rates, so that customer charges are more closely aligned with customer costs. Therefore, the customer charges applicable to voluntary TOD rates for SC 1 (Rates II and III) and SC 2 (Rate II) have been set equal to the proposed customer charges of Rate I for SCs 1 and 2, respectively, plus an incremental cost associated with a time-of-day meter. The Company is also proposing to limit the maximum term of the Business Incentive Rate (“BIR”) program, for new customers taking service under the BIR, to a maximum of 10 years. The BIR rate reductions will be applied in full for the first five years, with a phase out over the remaining five years. All existing BIR customers would be grandfathered under their existing contracts. In addition, the Company is proposing to provide separate electric facilities to a building for the purpose of providing publicly accessible EV fast charging at no cost to customers that meet the requirements of the Electric Vehicle Quick Charging Program under the BIR. Furthermore, the Company is proposing to remove obsolete items in the Monthly Adjustment Clause (“MAC”) while adding or revising components to: recover charges or credits related to FERC approved or ordered NYISO or PJM rebills or recalculations of charges paid by NYISO or PJM customers; recover costs related to commission-based pay for certain energy efficiency and demand management employees; recover carrying charges associated with interference costs causing an exceedance of the net electric plant target; recover the revenue requirement associated with upgrades to the Company’s transmission, substation and/or distribution systems necessary to maintain reliability due to a generator retirement; extended the Earnings Adjustment Mechanism and include any other incentives and revenue adjustments associated with Company incentive mechanisms. Other changes include proposals to: create a bill credit associated with the transfer of ETIP costs from the SBC to base delivery rates for Recharge New York customers to permit them to continue to receive an exemption from cost recovery associated with energy efficiency programs equivalent to the benefit of their exemption from the SBC; increase the compensation limits for residential and commercial customers for food spoilage with and without proof of loss; continue the residential low-income discount program, including waiver of any reconnection charges for eligible customers; update the re-inspection charge and charges for hi-pot, Megger, and dielectric fluid tests; update percentages used in the definition of costs associated with special services; add language indicating that all costs associated with the procurement of energy and capacity hedges and supplies for customers will be recovered in the Market Supply Charge Adjustment Factor; modify language to accommodate the deployment of Advanced Metering Infrastructure; tariff changes for its customers with Distributed Generators; eliminate Rider I – Experimental Rate Program for Multiple Dwellings and Rider O – Curtailable Electric Service; add a new provision specifying requirements for high tension customers in the event of a primary feeder failure; and add clarifying language regarding temporary services. Con Edison’s proposals are subject to PSC review and may be approved or modified after hearings open to the public. The Company’s tariff filing can be viewed on the PSC’s website, www.dps.ny.gov, by searching under Case 19-E-0065 or on the Company’s website, https://conedison.com/RatePlan. If you do not have access to the Internet, you can view complete copies of Con Edison’s tariff amendments at the PSC’s office at 90 Church Street, New York, New York 10007 and at offices where applications for Con Edison service may be made.