Jenkins, a Democrat, announced Tuesday that the PSC has agreed to host in-person public hearings in Westchester County and New York City’s five boroughs, although dates and times haven’t been announced yet. The PSC is already hosting virtual public statement hearings this week as it mulls whether to increase Con Ed’s average electric and gas bills by roughly 11 and 13 percent, respectively. If approved, the rate increase would start next year.
Jenkins says he sent a letter to the PSC and offered to host a public hearing at the Westchester County Center in White Plains. Speaking at Monday’s virtual hearing, he says Westchester residents can’t afford to see their bills go any higher.
“They are drowning," says Jenkins. "My message is simple: Con Ed cannot continue to pass their costs onto the backs of the ratepayers. And certainly not without transparency, without accountability, and without real justification. The Public Service Commission needs to pull the plug on Con Edison’s plan.”
The proposed rate increase has both customers and lawmakers up in arms, and Con Ed’s not the only utility seeking a rate hike right now. The PSC is also weighing cases from National Grid’s Mohawk Power Corp, Orange & Rockland Utilities, and Central Hudson Gas & Electric.
Con Ed, which serves New York City and Westchester County, says it needs to increase its delivery rates in order update and maintain its infrastructure. Utility spokesman Jamie McShane says Con Ed wants to better fortify its infrastructure against extreme weather events and flooding in areas like Mamaroneck, and it’s also needs to make changes in order to adapt to New York’s clean energy goals.
“We are powering our region to keep our region thriving," says McShane. "That means we need to fortify the grid in the face of increasingly severe weather — the increasing storms that we know we're all having to deal with — and bringing renewable energy sources online to help meet the state’s power goals, which is moving more and more towards electrification: electric vehicles, heat pumps. It’s all moving that way, and we need to fortify the grid to meet that demand.”
McShane says Con Ed is “acutely aware” of the rising cost of living right now. He says Con Ed invested more than $300 million in energy assistance programs for low-income ratepayers last year. He says it has also spent millions trying to enroll customers with larger homes, like those in Westchester County, in its energy efficiency programs.
Multiple lawmakers have called on the PSC to reject Con Ed’s request outright, including Governor Kathy Hochul.
New York State Senator Shelley Mayer, a Democrat from the 37th District, wants the entire PSC rate case process to change. She says utilities have learned they can come to the table with exorbitant requests and “settle” for the price they really want. Mayer has a bill that would require the PSC to start the conversation.
“My bill says the Public Service Commission should determine the appropriate rate of equity, or rate of return, which is presumptive," she explains. "In other words, unless you can prove that it’s wrong, that should be the rate.”
Mayer has also introduced legislation that would prevent utilities from using rate hikes to recover certain operating expenses, including any senior executive salaries that exceed the governor’s salary of $250,000.
McShane says it’s not just extreme weather and the push for clean energy that’s stressing Con Ed — he says they’re facing inflation, just like everyone else. The utility also says nearly 27 percent of its proposed electricity rate increase and 14 percent of the gas increase is caused by an expected increase in property taxes on its infrastructure.
McShane says Con Ed is looking forward to the hearings, and the rest of the rate case.
"We’re committed to working with the public," he says. "We want to hear from stakeholders and we want to work with the public to balance all the priorities, and continue to deliver safe and reliable power, while using our customers’ dollars as efficiently as possible.”
The PSC’s rate case process takes 11 months. Any rate hike wouldn’t be implemented until January.
