• New York’s largest utility provider, Con Edison, has proposed an 11.4% increase in electricity rates and a 13.3% increase in gas rates to support renewable energy investments. Many state residents oppose these hikes, with over 800 public comments submitted, citing concerns over already high power costs.
• Government data shows nearly 1.4 million New York residents were already behind on their energy bills in December 2024, collectively owing nearly $2 billion.
• After a regulatory review process typically lasting at least 11 months, a bipartisan board appointed by the governor will make a decision. If approved, the new rates would take effect in 2026.

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New Yorkers may experience an increase in their energy bills to support renewable power development. Utility company Con Edison, which serves more than nine million people in the state, submitted a rate hike request to the New York Department of Public Service in January.

How will the increases impact New Yorkers?

In a statement, Con Edison said the increase would “support clean energy investments needed to build and maintain the grid of the future.” Under the proposal, customers receiving power from the company would see an 11.4% increase in electricity rates and a 13.3% increase in gas rates.

Several New Yorkers have already voiced their opposition to the potential increases. The Public Service Department received more than 800 public comments on the matter, most of which expressed disapproval.

“Our ConEd bill has already spiked to over $500 for a one-bedroom apartment. Please do something about this and vote no more increases,” one resident wrote.

These rate hike talks come as many people in the state already face financial strain from utility bills. Government data from December 2024 shows that nearly 1.4 million residents were behind on their payments, with total overdue balances to energy companies nearing $2 billion.

Why is New York considering this?

The proposed rate adjustments align with New York’s transition to renewable energy under the state’s 2019 climate law. The law aims to phase out fossil fuels and increase electrification in buildings and transportation.

A 2022 state report estimated the transition could cost nearly $300 billion. However, projected health and economic benefits from reduced greenhouse gas emissions are valued at approximately $400 billion.

What happens next?

Con Edison’s proposal will undergo a regulatory review process, including public hearings and input from consumer advocacy groups, typically taking at least 11 months. A bipartisan board appointed by the governor will ultimately determine whether to approve the rate hikes or not.

Historically, final approved increases tend to be lower than initially requested, according to a Public Service Department spokesperson. In 2023, Con Edison’s requested rate hike was reduced by 60% during the review process. If the current proposal is approved, the new rates will take effect in 2026.