The New York State Department of Public Service held two public hearings this month to consider allowing Con Edison to increase rates on gas and electric delivery.
The proposed increases would raise the cost of gas services by an average of 8.4 percent and would increase the cost of electricity services by about 5.7 percent.
Con Edison, an energy company, has requested a rate increase that would aim to bolster its annual delivery revenues on gas and electric by about $640 million from the approximately 3 million customers they serve across Westchester County and New York City. The state Public Service Commission would have to approve the power company’s request for the rate increase in order for it to go into effect on Jan. 1, 2017.
Bills issued by energy companies consist of charges for supply—the cost of electricity or gas—and charges for delivery— the cost to transport the supply through the company’s utility network. A company is not responsible for setting the supply rates, and must receive approval from the Department of Public Service, DPS, which ensures affordable, safe and reliable access to utilities, before altering delivery rates.
The DPS has 11 months to review a rate case from when a company submits a request before they must approve or deny it. During that time, the commission organizes a team to analyze the company’s reasons for the proposed rate increase and negotiate a counteroffer.
Con Edison representatives said the company plans to use the increased revenue for several capital projects that would benefit its customers and increase employee safety. Con Edison President Craig Ivey said in a released statement, “We plan to implement a five-year smart meter modernization program that will reduce operating costs while significantly improving customer
service and outage response.”
These smart meters would be part of what the company is calling Advanced Metering Infrastructure, which would allow Con Edison to operate certain procedures—including assessing outages and turning on power for new customers—remotely.
Last year, Con Edison applied to raise rates on electric delivery in 2016, but the DPS denied the request. Con Edison has not increased delivery rates since 2012.
Con Edison estimates that the average residential consumer in Westchester uses about 450 kWh of electricity per month, a usage that would see a rate increase of $6.25. Residential gas usage, averaging about 100 therms per month in the county, would increase by nearly $11 monthly.
The Public Service Commission and Con Edison arranged an initial meeting to begin settlement negotiations for the morning of June 23, after press time.
