New York Governor Kathy Hochul directed the state government to reject the proposed electricity rate hike plan submitted by Con Edison, which would affect millions of electricity users in New York City and Westchester County.
Con Edison announced last week that it had applied to state regulatory agencies for approval to increase electricity rates by an average of 11.4% and natural gas rates by 13.3% starting from January 1, 2026. They also aimed to raise electricity rates by 20% and natural gas rates by 31% over the next three years to address infrastructure upgrades, investments in renewable energy, and rising operational costs. The plan is pending approval from the New York State Public Service Commission (PSC).
Governor Hochul believes that this plan would impose a heavy burden on consumers, especially low-income families and small businesses. She wrote a letter to PSC Chairman and CEO Rory Christian, instructing the commission to reject the proposal.
Hochul emphasized that the New York state government is committed to protecting residents from unreasonable rate increases and promoting more equitable and affordable energy policies. In a speech she delivered in Albany on February 11, she stated, “I strongly oppose the proposal by Con Edison at this time on behalf of New Yorkers who simply do not have the money to pay these bills.”
In addition to opposing the electricity rate hike, Hochul also directed the PSC to conduct the first-ever audit of the compensation of personnel in public utility companies across the state. She stated, “I want to ensure that they are being responsible with our ratepayers’ funds. We need to ensure the efficiency of these companies in management and operations to protect the interests of New Yorkers.”
Con Edison responded by stating that the company would continue to cooperate with the state government and regulatory agencies to seek viable solutions to ensure a stable electricity grid and meet the increasing energy demands.
Some consumers and advocacy organizations have expressed support for Hochul’s decision, believing that it will help residents of New York City and surrounding areas avoid further increases in energy costs.