Con Ed bills are soaring as regulators approve a rate hike, sparking controversy and concern among New Yorkers. The Public Service Commission's unanimous decision on Thursday, despite strong public opposition, has led to a 3.5% increase in electricity bills this year, rising to 3.2% in 2027 and 3.1% in 2028. For New York City residents, this translates to a monthly increase of approximately $6.88 this year. Gas bills will also see a significant jump, with a 4.4% increase this year, followed by 5.7% and 5.6% hikes in 2027 and 2028, respectively, resulting in an average monthly increase of $10.67 this year.
The rate increases will be effective retroactively from January 1, 2026. However, advocates and elected officials argue that these increases are still too high for New Yorkers. Over 70 city and state officials signed a letter urging the Public Service Commission to reject the proposal earlier this month, highlighting the affordability crisis in New York. AARP reports that approximately 1 million Con Ed ratepayers received notices last year threatening to cut off their power due to non-payment, indicating the financial strain many are already facing.
Bill Ferris, New York legislative representative for AARP, strongly opposes the rate hike, stating, "That is way too high. We just think it's not the time to [raise rates]." He emphasizes the need for Con Ed to reconsider its rates, as many customers in the service territory cannot afford their bills. Con Ed, however, defends the revised increases, claiming they are in line with inflation.
The utility company's original proposal, filed over a year ago, was significantly more steep, with a one-time increase of 13% for gas customers and 19% for electricity consumers. This proposal received an unprecedented 20,000 public comments, overwhelmingly in opposition. The new proposal, approved by environmental groups, New York City's government, and 40 Westchester municipalities, represents months of negotiations, aiming to invest in reliability, safety, and the clean energy transition while controlling costs.
The Public Service Commission estimates that the new rate hike will boost Con Ed's annual electricity revenues by $1.6 billion and an additional $440 million for natural gas. Con Ed's total operating revenue for the first nine months of 2025 was nearly $13 billion, a 12% increase from the same period in 2024. The company is expected to release its full 2025 results next month. Despite the increases, Con Ed has cut power to nearly 200,000 households last year, and customers owe around $1 billion in unpaid energy bills, according to Ferris.
The controversy surrounding the rate hike has sparked debates about the balance between utility companies' financial needs and the financial well-being of New York residents. As the discussion continues, many question whether the increases are necessary and whether there are alternative solutions to address the financial strain on New Yorkers.
