Con Edison proposes double-digit rate hikes to fund clean energy and infrastructure upgrades

Con Edison has filed plans with the state to raise gas and electricity rates in 2026, aiming to boost revenue for clean energy investments and infrastructure upgrades.

The proposal, submitted to the New York State Public Service Commission on Friday, calls for an average 11.4% increase in electric bills and a 13.3% increase in gas bills starting Jan. 1, 2026. The utility giant says it is raising rates to generate an additional $1.6 billion to enhance its electric delivery system and $400 million to upgrade its gas infrastructure.

The rate request begins an 11-month review process during which the Public Service Commission will hold hearings and allow elected officials, consumer groups, environmental advocates, and others to provide testimony.

Con Edison, which provides electricity to customers across the five boroughs and Westchester County, said it is upgrading its infrastructure to meet rising demand driven by building and transportation electrification, along with new development. The utility said more customers are switching to heat pumps and electric vehicles in alignment with New York State’s climate laws, and the proposed investments will ensure the grid is prepared for this transition.

The company, which provides gas service to customers in Manhattan, the Bronx, parts of Queens, and Westchester County, said its gas plan includes investments to maintain the safety and reliability of its system. The company seeks to continue replacing cast iron and unprotected steel mains with durable plastic piping.

“Con Edison is proud to serve more than 9 million people in New York City and Westchester County, supporting the vital economic, health, and transportation networks that keep our region thriving,” said Matthew Ketschke, president of Con Edison, in a statement. “Our proposed investment plan will support critical work and investments in reliability, resiliency and clean energy infrastructure to meet the high expectations of our customers.”

The plan also calls for greater outreach to low-income New Yorkers to help them enroll in customer affordability programs.

Con Edison acknowledged the economic difficulties many customers face and is seeking additional funding to expand enrollment in its Energy Affordability Program (EAP). In 2024, Con Edison provided more than $300 million in bill discounts to those enrolled in the EAP.

The company says that a significant portion of the proposed rate hike is tied to rising property taxes on energy infrastructure.

The plan estimates that nearly 27% of the proposed electric revenue increase and about 14.5% of the proposed gas revenue increase stem from higher property taxes.

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