Con Edison has agreed to reduce their originally proposed double-digit rate hikes for both electric and gas services in New York City and Westchester County. The utility, which previously sought an 11.4% increase for electric and a 13.3% bump for gas, will instead raise rates by 2.8% and 2% respectively under a new three-year plan. The scaled-back proposal has been attributed to backlash from customers and lawmakers who have voiced concerns over the steep costs.
According to a report by CBS News, Con Edison announced the decision following an 11-month negotiation process. The company stated that they are working to balance "affordability" while needing to adequately invest in maintaining system "reliability and resilience." Despite changes, Westchester leaders still express disapproval of any hikes. In a statement cited by CBS News, County Executive Ken Jenkins and the Board of Legislators remarked, "Con Edison cannot be allowed to continue passing their costs on to customers without full transparency, real justification, and measurable accountability."
The revised rate hikes require approval from the state Public Service Commission before they can take effect. This comes after the utility faced intensifying pressure from state officials, including Gov. Kathy Hochul who had earlier described the initial rate hike proposition as "shocking." In a piece reported by NY1, Hochul directed the Department of Public Service to reject the sharp increases which could lead to substantial annual increases in utility bills for residents.
Amidst the uproar, Con Edison has emphasized their ongoing efforts to assist low-income customers, reporting in a statement that "last year we provided more than $300 million of discounts to income eligible customers in our energy assistance programs." However, local officials are urging to dramatically reduce such hikes even further, with legislators pointing out the strain on families. "Families are already being stretched to the breaking point," said Jenkins and the county legislators as reported by NY1. "A rate hike of this magnitude will force too many to choose between paying their utility bills and affording necessities like food, medicine, or childcare."
The utility company maintains that increased costs are partly due to the necessity of fortifying the grid against extreme weather events and investing in the infrastructure required to meet the state's clean energy objectives.
