Con Edison has agreed to sharply scale back proposed rate hikes for electric and gas customers in New York City and Westchester County.
Under a new three-year agreement, a previously proposed 11.4% electric rate increase set to take effect starting Jan. 1, 2026 has been reduced to 2.8%, while a proposed 13.3% gas hike has been lowered to 2%, the utility confirmed Thursday.
In a statement, the company said the revised proposal “balances the immediate affordability challenge with the investments necessary to maintain system reliability and resilience in the short term.”
What You Need To Know
Con Edison has agreed to reduce proposed rate hikes for New York City and Westchester customers
Electric rate increases drop from a proposed 13.4% to 2.8%, and gas hikes fall from 19% to 2% under a new three-year plan
The revised agreement runs from Jan. 1, 2026, through Dec. 31, 2028, and still needs approval from the state Public Service Commission
“The Joint Proposal is the result of an 11-month, highly inclusive process led by the [New York] Public Service Commission, engaging the broadest range of stakeholders to date,” it said. “Con Edison is acutely aware of the issue of affordability, which is why last year we provided more than $300 million of discounts to income eligible customers in our energy assistance programs.”
The new proposal still required approval from the Public Service Commission.
Even with the reductions, Westchester County Executive Ken Jenkins and the Westchester County Board of Legislators said they “strongly reject” the proposal, arguing the hikes would burden residents already struggling with high costs.
“Families are already being stretched to the breaking point,” the county leaders said in a joint statement. “Utility bills are skyrocketing while wages remain flat. A rate hike of this magnitude will force too many to choose between paying their utility bills and affording necessities like food, medicine, or childcare.”
The Westchester lawmakers said they are asking the Public Service Commission to “reconsider this proposal, and work with local leaders to find solutions that do not further burden Westchester ratepayers.”
The reduced proposal follows months of pushback from state and local leaders.
Earlier this year, Gov. Kathy Hochul called Con Edison’s initial request for double-digit increases “shocking,” and directed the Department of Public Service to reject it.
“This is a real hit on families when they didn’t budget for this,” Hochul said in February. “They weren’t planning for this, and these bills going up, upwards of $500 a year — I’m trying to put $500 back in their pockets because of the inflation rebate, and it’s going to go right out the door to pay this bill?”
The utility has said rising costs are driven in part by property taxes and investments to strengthen the grid against extreme weather and meet the state’s clean energy goals.