Con Edison Rate Hikes Okayed for Next Three Years.
Dubbed by the PSC as a means to cover “increased property taxes, new infrastructure investments, higher depreciation expenses and increased operating expenses.” Monthly electric bills are expected to increase 2.3% this year and then 2.4% during each of the two next years. For apartment dwellers, that’s an increase from $78.52 to $84.20. Homeowners can expect average increases from $109.64 to $118.30.
Increases will also effect gas rates.
Con Edison is raising its transmission and distribution rates to cover improvements to bring them in line with the states’s Reforming the Energy Vision (REV) program.
Power Consumers Burdened with Taxes and Fees
In the wake of PSC approved price hikes for Con Edison, the Independent Power Producers of New York, Inc. (IPPNY) accuses the states utilities and the PSC of piling taxes and fees onto monthly customer bills. According to the Albany-based trade association, IPPNY found that in spite of prices declining in the state, 70 percent of electric bills are composed of “excess taxes and fees.” In a brochure released on January 25, IPPNY makes the case that 2016 bills from both National Grid and Con Edison broke down to 29% for electricity supply, over 50% for transmission and distribution, 10% for New York State Taxes and Fees. In the case of National Grid, 11% of the bill went to their Electric Supply Reconciliation Mechanism or hedging charge. National Grid’s charge is explained as a way to help customers in winter months “…avoid paying a high bill during an unusually cold month.” However, customers are surcharged in the months afterwards. IPPNY says this charge rose from 2% of the monthly bill in 2012 to 11% in 2016 because National Grid has been overpaying for electricity supply and is recovering the cost from its customers.
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