ConEd Hikes Rates, But Consumers Could Still See Lower Bills

ConEd has just what you need in the middle of recession: a rate hike! Monthly bills are set to rise between $6-$8 as the energy monster tries to recoup a half a billion dollars to cover the cost of higher property taxes and the usual infrastructure maintenance that utilities never budget for in advance. The perennial optimists at the New York Post still somehow think you’ll still end up with a lower bill…

In the end, customers likely will save this year thanks to a drop in the prices Con Ed pays electric-generating companies.

A New York City apartment dweller who uses 250 kilowatts of electricity will pay Con Ed about $70 this July, down $4 from last year.

Based on the same set of assumptions, an apartment dweller who uses 500 kilowatt hours of electricity will pay $127 this July, about $9 less than last year.

The New York Times disagrees, along with the Chairman of the Public Service Commission, which approved the rate hike:

“We are always concerned about the impacts on ratepayers of any rate increase, but today’s decision is particularly difficult,” said Garry A. Brown, the commission’s chairman. “In this economy, the idea of raising rates is very distasteful. Unemployment has risen and consumers are having difficulty paying their bills. Nevertheless, there are certain increases in Con Edison’s costs that have to be recognized.”

ConEd also expressed dissatisfaction with the ruling, saying that the $523 million rate hike is far less than the $819 million they requested.

Regulators Grant Con Edison a $523.4 Million Increase in Delivery Rates [The New York Times]
WATT A SWITCH: LOWER CON ED BILLS EXPECTED [NY Post]