Con Ed Wants to Raise Your Bill — Again
Prepare for more sticker shock: Con Ed wants to raise your energy bills again. An average electric customer could see their bill increase by over 11%, while gas customers could see jumps of more than 13%, starting as soon as Jan. 1, 2026.
Con Ed, with its 3.4 million electric and 1.1 million gas customers in New York City and Westchester, announced the proposed rate hikes earlier this month. Gov. Kathy Hochul, who has been sensitive to any measures that could raise household costs, on Tuesday sent a letter asking the Department of Public Service, which regulates utility companies, to reject Con Ed’s rate increases and to audit the company’s management compensation.
Recurring Rise
If you’re having déjà vu, it’s because the state approved a rate increase of about 12% over three years for Con Ed electric customers in 2023. Before that, in 2020, Con Ed implemented a state-approved electric rate increase of about 13% that also took place over three years.
PSC Chair Rory Christian acknowledged during a state budget hearing in January that the PSC must "do more" to keep rates affordable. "Throughout every rate case, we review every filing to ensure that what we do ultimately approve is absolutely necessary for the safety and reliability and the continuity of the systems," Christian said.
Turning up HEAT
The rate hikes come as nearly half a million of Con Ed’s 3.1 million residential customers had unpaid bills at least 60 days past due, amounting to $948 million, according to the most recent data the company submitted to the state.
Though Con Ed said it provided over $300 million in bill discounts through its Energy Affordability Program last year, Alicia Corp, direct services supervisor at the Public Utility Law Project, said she worried the rate hikes would further squeeze customers already behind on their bills. "For many households, particularly those on fixed incomes and low incomes, another rate hike would only deepen their financial distress and force difficult decisions between keeping the lights on, heating their homes, and affording other basic necessities," she said.
Turning up the Heat
As the legislative session kicks off in Albany, some state lawmakers have introduced bills that would tackle the rising costs of energy. Sen. Kevin Parker (D-Brooklyn), chair of the Senate energy committee, introduced a package of eight bills meant to strengthen utility customer protections and support transparency around energy charges.
There’s also a huge push by environmental advocates around another bill, known as the HEAT Act, which would direct the PSC to come up with a plan to regulate the gas system in line with the state climate law and would cap utility bills at 6% of household income. The idea behind the HEAT Act is to change the status quo, in which ratepayers subsidize new gas hook-ups to customers and continue to pay for investments in an aging gas system.
Conclusion
Con Ed’s proposed rate hikes have sparked concerns about the affordability of energy for New Yorkers. While the company claims the increases are necessary to cover rising property taxes and other expenses, critics argue that the hikes will disproportionately affect low-income households and those already struggling to pay their bills.
Frequently Asked Questions
Q: Why is Con Ed proposing rate hikes?
A: Con Ed claims the rate hikes are necessary to cover rising property taxes and other expenses, such as energy efficiency incentives, information technology, and staffing and equipment necessary to deliver electricity.
Q: How much will my bill increase?
A: An average electric customer could see their bill increase by over 11%, while gas customers could see jumps of more than 13%.
Q: What is the HEAT Act?
A: The HEAT Act is a bill that would direct the PSC to come up with a plan to regulate the gas system in line with the state climate law and would cap utility bills at 6% of household income.
Q: How will the HEAT Act benefit consumers?
A: The HEAT Act could save New York City utility customers an average of $142 per month, according to the NY Renews coalition.
