Con Edison Has Filed to Increase Gas Rates

On January 31, 2019, Con Edison (or the “Company”) filed with the New York State Public Service Commission (“PSC”) a proposal to increase its gas delivery rates to firm customers by $210 million commencing January 1, 2020. If approved by the PSC, the $210 million increase would be approximately 9.1 percent inclusive of projected supply costs, or 14.5 percent on a delivery rate basis. The Company has also filed for an electric rate increase, which is described in a separate newspaper notice today.

The following tables show the effect of the proposed gas rates on selected monthly bills for most residential and commercial customers in the rate year commencing January 1, 2020.

revenue In taxes addition in effect to gas for delivery the various charges municipalities, and other applicable and assume surcharges, normal weather. the gas bills These shown bills exclude above include sales tax projected as well gas as the supply effect charges of changes and average outside the base rate level approved by the Commission, such as the tax sur-credit, Efficiency Transition Implementation Plan cost recovery transferred from the System Benefits Charge to base delivery rates, and Revenue Decoupling Adjustment revenues. 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.

For the majority of customers, the range of percentage bill increases is as follows: SC 1 Residential and Religious, from 10% to 12%; SC 2 Rate 1, from 4% to 14%; SC 2 Rate II, from 7% to 14%; and SC 3 Residential and Religious Heating, from 8% to 16%.

The Company proposes to continue its residential low income program under SC 1 and SC 3 and reconnection fee waiver for eligible customers. It proposes to increase the monthly minimum charge for its firm service classes, update Rider D - Excelsior Jobs Program percentage discount from SC 2 rates for customers commencing service on and after January 1, 2020, and update the factor used to estimate a customer’s winter peak day usage under Rider H. The Company will discontinue its New York City and Westchester Area Growth Programs and its conversion incentive program, and modify its provisions related to emergency electrical generators including adding an applicability requirement under Rider J requiring the customer to indicate if the gas service request is for an emergency generator. It is also proposing to change the revenue decoupling mechanism from a revenue per customer methodology to a revenue per class methodology. Four components under the MRA will be modified to (1) extend the Earnings Adjustment Mechanism to recover/credit any other incentives and revenue adjustments associated with Company incentive mechanisms, (2) recover/credit all payments and receipts from the New York Facilities Agreement through the MRA, (3) continue to recover payments made to interstate pipeline companies for upgrades to their facilities at Company gate stations and (4) continue the Safety and Reliability Surcharge to recover incremental costs related to main replacement and reducing leak backlogs. The Company is proposing to add two new components to the MRA to (1) recover carrying charges associated with interference costs causing an exceedance to the gas net plant target and (2) recover gas operations’ share of commission based variable pay for certain energy efficiency and demand management employees. The Company is also proposing to exclude from recovery, through the Energy Efficiency Tracker Surcharge Rate, costs associated with programs funded through base delivery rates, to modify the balancing provisions related to interruptible and off-peak firm customers to add a maximum delivery charge for over-delivery quantities, and to recover the cost for capacity, including fees, purchased through third party Asset Management Arrangements and all costs associated with using an online auction platform through gas costs. The Company also updated the percentages used in the definition of costs associated with Special Services and made housekeeping changes to eliminate obsolete provisions.

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-G-0066 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.