The critics are charged up.
Gov. Kathy Hochul’s Democratic rival is blasting Con Edison’s “outrageous” proposed rate hikes as he urged the state’s utilities regulator to reject any increase above the rate of inflation.
“Governor Kathy Hochul’s Public Service Commission must reject any proposed rate hike that far exceeds the rate of inflation,” Bronx Rep. Ritchie Torres said in a letter to the commission.
“Ramming a double-digit rate increase down the throats of New Yorkers, who are reeling from years of inflation, would mean breaking the Governor’s promise of an `inflation refund’ and `no new taxes.’ “
The utility giant is asking the PSC to jack up average electric bills by 11.4% and send gas bills soaring 13.3% — a move that could mean a wallet-busting $1,848 more per year than customers paid in 2020.
“A rate hike is a tax on New Yorkers.”
Hochul’s spending plan includes $3 billion to fund ‘”inflation rebate” checks of $300 to single New Yorkers who make up to $150,000 per year and $500 for joint tax filers making up to $300,000 per year.
“At a time when New York is struggling to recover from the highest inflation in more than four decades, the attempted double-digit rate hike reveals a profound disregard for the plight of most working-class and middle-class New Yorkers,” said Torres, who is mulling a run for governor against Hochul in a party primary next year.
“The notion that New Yorkers should be expected to perpetually absorb the shock of relentlessly rising costs is tone-deaf and out of touch. Since 2022, under Governor Kathy Hochul, the average Con Ed customer has been paying $50 more per month for gas heating.”
Torres cited a March 2024 report by Switchbox, a climate think tank, claiming that one-quarter of New Yorkers cannot afford to pay their utility bills.
He also cited the case of Wardean Squire-Askew from the Bronx—who served in the US military for 23 years and in NYC Health + Hospitals for 43 years — and has allegedly been forced to tap into their emergency savings to pay the cost of utilities.
The city has two state-sanctioned gas monopolies — Con Ed and National Grid, and Torres said the regulated utilities should have comparable pricing.
But Con Ed, on average, charges 100% more for gas delivery than National Grid, Torres said.
“The difference between what Con Ed charges the ratepayers of the Bronx and what National Grid charges the ratepayers of Queens is as much as 200%,” added the congressman.
Torres did not respond to follow-up questions on what he thinks are the cost drivers of New York’s high energy costs, though the company itself has blamed costs partially on the state’s green mandates.
According to Con Edison’s filing with the PSC, the proposed rate increase is necessary to pay for “infrastructure investment” that includes the push for clean energy expansion — with only the cost of property taxes a bigger cost driver.
Torres, co-sponsor of Rep. Alexandria Ocasio-Cortez’s proposed Green New Deal for Public Housing Act, may not be calling out the state’s green push but some other local officials are.
Republican Councilwoman Vicki Paladino said liberal policies such as the closing of power plants and electrification projects have sent costs soaring as Democrats “brag” about the initiatives.
“As far as they’re concerned this is all just a fact of life now and we’re going to have to live with much more expensive energy,” Paladino said. “Their destructive green programs are untouchable.”
Meanwhile, Hochul’s camp said the governor is on the case of the latest proposed hikes.
“Governor Hochul appointed new leadership at the Department of Public Service,” a Hochul spokesman said. “The Public Service Commission has repeatedly worked to keep utility rates low and fought outrageous corporate proposals to hike costs on consumers.
“We encourage New Yorkers worried about this rate hike to express their frustration directly to the Commission during one of their many public hearings,” the governor’s rep added.
PSC Commissioner Rory Christian, in a response letter to Torres, said the regulatory agency is not a patsy and will closely review Con Ed’s rate hike requests. .
He acknowledged that utility rates are becoming “unaffordable for many New Yorkers” and that while the PSC has worked with Hochul and the legislature to address the crisis, “the issue demands our constant vigilance.”
A Con Ed spokesman, asked about Torres’ criticism, said, “Energy delivery rates vary from utility to utility for many reasons, including the level of service, customers’ needs, the characteristics of the area, property taxes and the timing of new rates.”
“Con Edison’s investment plan proposal begins an 11-month review process, overseen by our state regulator, to assess necessary upgrades for reliable service, extreme weather resilience, and the clean energy transition. Affordability is central to our plan, which also proposes expanded outreach and support for low- and moderate-income customers. Con Edison creates jobs, boosts local businesses, and drives economic growth across the city, region, and state.”
Additional reporting by Aneeta Bhole
