NEW YORK -- Con Edison announced a new rate plan this week that will raise electric bills by more than 9% for customers next month.
The utility received approval from New York for a plan that would help move the state away from its reliance on fossil fuels.
While that is good news, the bad news it would raise rates for customers three times over the next two years.
An average New York City apartment will see an increase of 4.3% in January 2024, and the bill will go up 1.7% starting January 2025.
Con Ed says the 9% price hike next month is retroactive. The hope was that a 4.2% increase would have gone into effect at the start of this year.
Meanwhile, gas heating customers could see a price jump as high as 8.5% next month and about 6.5% over the next two years.
"The system as it is now probably couldn't handle everyone switching to electrification, so we have to update the grid," Con Ed spokesman Philip O'Brien said.
While Con Ed will use the money to invest $11.9 billion into its green energy plan, some contend there has to be another way to achieve the goal.
Assemblymember Zohran Mamdani is one of several officials who called on the Public Service Commission to block the rate hikes.
"25 percent of all of our constituent cases are already about Con Ed, it's from tenants, it's from homeowners, small businesses, they don't know how they are going to pay their bill," Mamdani said.
The increase passed the commission by a Public Service Commission vote of 7 to 1, and comes after months of negotiations over the proposed hikes.
"In the past, New York has built energy infrastructure with a focus on serving immediate customer needs, rather than reimagining energy for the future. But given the impacts of climate change, we know that the clean energy transition is critical for New York," said Tim Cawley, Chairman & CEO of Con Edison. "With today's approval from the PSC, Con Edison can further support New York's transition away from fossil fuels by investing in the electric grid to accommodate increased demand as New Yorkers electrify their vehicles and the heating in their homes and businesses. I look forward to working with Governor Kathy Hochul and PSC Chair Rory Christian to usher in a clean energy future equitably and efficiently so every New Yorker can share in the benefits of a more sustainable grid."
Customers who need help with payment assistance can speak with a customer service specialist at 212-358-4565 or visit coned.com/billhelp.
Con Ed hopes to build a system that delivers clean energy by 2040.
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