Con Ed Hopes To Raise $1.2 Billion From Proposed Rate Increases

WESTCHESTER COUNTY, NY — Con Edison is seeking new electric and gas rates in 2023 to fund clean energy investments and to make infrastructure upgrades, the utility has announced.

The proposal to the New York State Public Service Commission would raise the average customer's overall electric bill by 11.2 percent and gas bills would increase 18.2 percent. The proposal seeks an additional $1.2 billion in revenue to upgrade and operate the company's electric delivery system and $500 million for the gas system.

The company blamed the need for a substantial rate increase in part on steep property tax bills in New York City. Officials said the tax bill will be $2.5 billion for 2023. Property taxes account for approximately $180 million of the proposed increase in electric revenue and $75 million of the proposed increase in gas revenue, according to the filing with the utility commission.

The company said a portion of the increased revenue will also be reinvested in the gas and electric infrastructure.

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"Con Edison is in a unique position to lead the transition to a clean energy future with better public health, a vibrant economy and more equality of opportunity for all," Con Edison President Matthew Ketschke said in a statement announcing the proposed rate increase. "That's why we want to dramatically increase our energy efficiency incentives, make electric vehicle charging more convenient, and encourage heat pumps as an alternative to gas heating."

The utility company said the new revenue would be used to "continue unprecedented investments in energy efficiency, renewables, electric vehicles and clean heat." The proposal also seeks funding for investments in battery storage and new transmission lines to maximize the environmental benefits of the move to renewable energy.

Con Edison said it plans to explore future uses and fuels, including hydrogen, for its natural gas delivery system. The company is also proposing investments to fund the replacement of gas main with durable, high-density plastic piping, which Con Ed officials said will reduce leaks and methane emissions and enhances safety.

The filing also cites the increased frequency of intense and destructive storms and heat waves. The six worst storms in the company's long history, as measured by the number of customer outages, have all occurred since 2010, Con Ed officials noted.

The investments would include placing certain vulnerable overhead electric cables and other equipment underground to prevent outages during severe storms.

"The improvements we have made to our systems reduce the number of customers who lose power during severe weather and enable us to more quickly restore service to those who do experience outages," Ketschke said. "We want to continue with those investments because reliable, resilient energy service is uniquely important in our densely populated region that is home to the world's financial capital, leading medical, educational and cultural institutions, and entertainment venues."

Con Edison estimates that its clean energy investments will save approximately 2.4 million metric tons of carbon dioxide over the next three years, equivalent to taking more than 500,000 cars off the road for a year.

The company said it will also continue to invest in cybersecurity to stay ahead of current and evolving threats.

While the filing proposes one-year rate plans for electric and gas, Con Edison intends to discuss multi-year plans with PSC staff and other parties. A multi-year plan would result in lower annual increases and provide more cost certainty for the company's 3.5 million electric and 1.1 million gas customers.

"The initiatives and programs in the company's proposal focus on keeping the system safe, not expanding it," Con Edison said of the proposed rate increases. "Over the next three years, approximately 85 percent of the gas system investment will be devoted to making the system safer. Because of the company's commitment to clean energy and moving away from fossil fuels, the proposed gas rate plan is not a 'business-as-usual' filing."