The state senator that the increase is a compromise between energy companies that harms the interests of users
Port Chester
Senator Shelley Mayer, who represents District 37 in the New York State Senate, testified for herself Thursday before the Public Utilities Commission at a Public Statement Hearing on the Consolidated Edison rate case hearing. The following is her statement that summarizes her testimony.
“I speak here today in total opposition to this proposed rate increase for Consolidated Edison taxpayers. Unfortunately, this ‘Joint Proposal’, agreed to between Con Ed and the PSC, includes three-year electric and gas rates that represent another set of multi-billion dollar rate increases by Con Ed, plans that will increase bills of customers at $3.9 billion. for three years. Ironically, this proposal is presented as a compromise between Con Ed and the PSC, but it is not a compromise in the best interest of the millions of Con Ed taxpayers who will once again have to bear increased costs. What happened here has happened before: Con Ed asks for excessive rate increases that he knows he won’t get to justify the large rate increases he ends up getting. In practical terms, over three years, the average residential electric customer will see an increase of $18 per month over current rates, which is an increase of 27%, while the average residential heating gas customer will see an increase of more than of $40 per month over current rates, which represents an increase of 28%.”
“This rate increase comes on the heels of Consolidated Edison’s most recent rate increase, which I strongly opposed, but which went into effect only a year ago. To my constituents, these increases are unacceptable, unaffordable, and leave them incredibly frustrated that their own efforts to reduce home energy use have only a limited effect on lowering their bills. As one of my constituents said: “I have lowered the temperature in my house to between 60 and 65 degrees depending on the time of day. I believe by state law, renters are entitled to 68 degrees during the day. I’m not even going to do that. Because the delivery charge is continually increasing, even taxpayer efforts to reduce their energy use have limited effect on their energy bills.
“As I noted in my earlier opposition to Consolidated Edison’s proposed rate increase, I am particularly opposed to its increase in profits through a ‘return on equity’ enhancement. In his initial proposal, Con Ed asked for a 10% return on capital investment, which was more than any New York utility has received in 30 years, and significantly higher than the already too high 8, 8% return on equity they received in the 2019 case. This Joint Proposal gives them a 9.25% “return on equity” at the expense of taxpayers who already pay some of the highest rates in the nation. This is simply unacceptable.
Senator Mayer urged the Public Utilities Commission to review the Joint Proposal, reject any rate increases, and proactively fulfill its legal mandate to protect New Yorkers and ensure affordable, safe, and reliable access to electric and gas service.
Posted on March 30, 2023
