Why Does Con Ed Want to Raise Rates?

Con Ed asked the NY PSC for a rate request back in 2022. Now the PSC is studying the utility from the top down. Learn how customers could be affected by their decision.

Con Ed Asks to Raise Rates

Con Ed rates are high enough say its worried customers. Find out why the NY PSC is studying the utility and what it means for future bills.
Con Ed customers have had enough of high rates. Find out why the NY PSC is still studying the utility’s rate hike request and what it means for your future electricity bills.

Electric costs in NYC are already high. But the utility serving the city and Westchester County hopes to charge even more. Con Ed, the utility serving NYC and Westchester, first filed a request to increase distribution charges in January 2022. The NY PSC has so far delayed approving the hike for more than 18 months. While, the utility is still holding out for approval to bump up your electric costs, most residents stand strong against those higher electricity rates. So, why does Con Ed want to raise your rates?

The Reason to Raise Rates

In a statement to the Queens Chronicle, Con Ed says the rate increases fund necessary changes and improvements. The utility plans to use the money to improve infrastructure like burying electric lines and replacing utility poles. Additionally, Con Ed must also make changes to meet the state’s energy goals. These updates include power storage facilities like the 7.5 MW battery energy storage station on Staten Island.

Yet, while the electric grid may need these important upgrades, the higher rates are not welcome in NYC.

PSC Delays Request to Raise Rates

The NY Public Service Commission at first reviewed a request to increase distribution charges by 17.6% in January 2022. Over the next year, the PSC negotiated the utility down to an increase of 11.4% spread over three years. The first of these rate increases was meant to come into play this month, but the PSC delayed action further. According to a PSC spokesman, they launched a full review of Con Ed, from customer service to finances. So, any decision on the rate filing is on hold pending the review.

The steep hike in rates could cost the average New Yorker hundreds of dollars each year depending on services and energy used. This is more than many can bear. Therefore, politicians like Zohran Mamdani have been vocal about stopping the hike. The PSC encourages residents and representatives to voice their opinions directly during the review process.

With Higher Con Ed Rates Looming, Shop to Save

Although Con Ed has been put off their mission to drive up rates for now, it’s likely that an increase will eventually come to pass. But you can put yourself in the best position to withstand any changes. There may only be one utility in the area, but there are several electric providers and plans to choose from. We can help you make sense of it all.

Be sure to check out https://www.nyenergyratings.com/blog for news and information that affects your New York electricity bills.