The governor said the utility should not be able to raise costs on New Yorkers while continue paying large salaries.
NEW YORK (WABC) — Gov. Kathy Hochul spoke out Tuesday morning about the proposed Con Edison rate hikes for New York City and Westchester residents.
Hochul is asking the New York State Public Service Commission to reject the proposal and said she will launch an investigation into compensation packages at the utility
“Here I have a letter that I’m sending to the DPS chair, and CEO, Rory Christian, that I’m going to sign right now that expresses my strong objection to what they’re proposing to do to New Yorkers at this time when they just don’t have the money to pay these bills,” Hochul said.
Last week, Con Ed announced it was asking state regulators for permission to hike electric bills by an average of 11.4% and gas bills by 13.3% starting on Jan. 1, 2026.
Hohcul said that the increase proposal will hit seniors especially hard. There are 500,000 Con Ed customers already behind 60 days or more on their electric bills, according to AARP.
The high cost of utility bills has even led one landlord in New York City to go back to home heating oil to lower his and his tenant’s bills.
Plumber John Norton installed mega efficient, wall-hung boilers in three apartment buildings his family owns in Queens. For several years, it was terrific for his wallet and the environment. Gas usage dropped in half and tenants got all the hot water they needed. But he says the switch to gas, and the move to go green has now proved crippling.
One of his buildings consumed only $149 worth of gas but Con Ed charged him more than $450 to deliver the gas. That’s three times as much for the service, multiplied by Norton’s three buildings. On top of that, he is being slapped with another $600 fine every month he’s late.
For Norton, who cannot afford his Con Ed bills, he is going to remove the perfectly good gas boilers and go back to oil. He has found an energy efficient model that will allow him to escape Con Ed’s steep service fees.
While the company says they hear those concerns from customers, it said it also has a responsibility to deliver reliable power.
They previously said the rate hikes would help fund investments in clean energy and infrastructure upgrades needed as severe weather becomes more frequent and severe.
However, the governor said the utility should not be able to raise costs on New Yorkers while continuing to pay large salaries, and she opened an audit of Con Ed management compensation.
The CEO and CFO have base salaries of over $1.3 million and $810,000 a year, respectively, according to SEC records.
To further defend the state’s clean energy mandates, the governor says property tax increases for Con Ed in the city is the real driver behind potential rate hikes.
She says if these are newer property taxes because of the investments companies are making to implement clean energy legislation, that is worth having a conversation between state budget office and the city.
The proposed hikes still need to go through a lengthy process, including public comment.
A spokesperson for Con Ed released the following statement:
“Affordability in our state and country touches every aspect of New Yorkers’ daily life-from energy to housing to groceries. Con Edison is acutely aware of this, which is why we work with customers to make utility bills more affordable. Our energy efficiency programs help our customers use less energy and save money, we’ve invested 300 million dollars in energy assistance programs for low- and moderate-income customers in 2024 and continue work to enroll all eligible customers, and advocate for policy changes to make utility bills more affordable. We also have a responsibility to continue to safely and efficiently deliver the nation’s most reliable power while complying with state laws and regulations. That means fortifying the grid in the face of increasingly severe extreme weather, bringing renewable energy sources online to help meet the state’s clean power goals, and supporting the workforce we need to conduct ongoing maintenance and swiftly respond to customer service calls. Con Edison, as we always have, stands ready to work with stakeholders and the public to balance all of these priorities and continue to deliver safe and reliable power while using our customers’ dollars as efficiently as possible.”
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The governor said the utility should not be able to raise costs on New Yorkers while continue paying large salaries.
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