Con Edison is seeking state regulatory approval for infrastructure investments the utility says would help it maintain reliable electric service and continue fortifying its energy systems, as “extreme weather events become more frequent and severe.”
The investment plan, still subject to approval by the New York State Public Service Commission, includes clean energy investments, updates to customer affordability programs, and IT infrastructure and tools.
Con Edison intends to construct new electric infrastructure to serve forecasted load growth from building and transportation electrification and new development throughout its service territory. Con Edison says its customers continue to choose heat pumps and electric vehicles consistent with New York State’s climate laws and the proposed investments are intended to help ensure the grid is ready to meet the associated demand.
The proposed electric and gas rate plans would support investments including more than $21 billion over three years for infrastructure including transmission, substation, and distribution facilities to better serve customers, including those in disadvantaged communities, and help ensure compliance with New York State’s Climate Leadership and Community Protection Act.
customer cost certainty
The filing requests new rates for one year starting on January 1, 2026. Con Edison said it is open to a multi-year settlement, which could provide more cost certainty for its customers. Con Edison estimates that its investments would require approximately $1.6 billion more in electric revenue and about $440 million more in gas revenue, resulting in an average electric bill increase of 11.4% and an average gas bill increase of 13.3%.
Additionally, the plan estimates that increasing property taxes on energy infrastructure paid by customers account for nearly 27% of the proposed electric revenue increase and about 14.5% of the proposed gas revenue increase. Con Edison estimates it will collect more than $3.2 billion in property taxes from its customers in 2026 and said it “welcomes the opportunity” to work with policymakers on solutions that could direct that tax revenue back to low-income customers to provide bill relief or support clean energy programs.
Clean energy, reliability, and resilience
Con Edison said it is still working to build a resilient grid capable of delivering 100% clean energy. Specific components of its investment include:
- A substation complex in eastern Queens to support the growing demand for power from the redevelopment of JFK Airport, MTA bus depots, and customer electrification in the Jamaica network will also help to lower emissions.
- A clean energy hub in Brooklyn that will “unlock” renewable energy while supporting reliability in local neighborhoods.
- A Distributed System Technology Platform to integrate renewable energy sources and maintain grid stability during extreme weather. Supporting demand response programs helps Con Edison manage energy consumption.
- An electrification pilot for private, affordable multi-unit buildings to help address the affordability impact of heating electrification through bill credits to tenants not covered by rent control and residents in low-income co-ops. This pilot will provide insight and understanding into how to help mitigate the cost of the clean energy transition for these tenants.
- Expansion of service installation programs for new businesses, including electric vehicle infrastructure and building heating electrification, to accommodate the expected increase in activity due to the transition to electric vehicles and clean heat and new development.
- Expansion of the electric delivery system in areas where medium- and heavy-duty fleets are located to facilitate the conversion to electricity for transportation and to maintain system reliability and resilience while enhancing public and employee safety investments.
Cost Efficiencies & Productivity
Con Edison is also implementing ongoing efforts to drive cost efficiencies by leveraging business processes, workforce, and its technology:
- Con Edison will continue its competitive bid processes for major contracts.
- To drive efficiency of its operation and reduce energy waste, Con Edison will continue to deploy algorithms and sensors on underground equipment to help detect problems early and manage issues before they become costly.
- Con Edison will also continue to implement energy efficiency programs to help low- and moderate-income customers reduce their energy consumption and costs.
- Con Edison will continue investments in its digital channels, including websites, virtual assistant, and mobile applications to support customers’ ability to receive service promptly and effectively.
Preventing Outages
Con Edison’s research with Columbia University and the New York State Energy Research and Development Authority found that extreme weather events will continue to increase in frequency and severity. The plan includes investments meant to enhance reliability and resiliency to address more frequent and severe storms, hotter temperatures, and longer heat waves.
These investments build on the company’s experience in hardening its energy systems against severe heat, wind, flooding, snowstorms, and rainstorms since Superstorm Sandy. The resiliency measures already implemented have prevented more than 1.2 million customer outages, the utility said, and Con Edison is seeking additional funding to help ensure it can keep pace with changing climate impacts.
Specifically, Con Edison proposes:
- Replacing overhead wire circuits with “more resilient” aerial cable and installing switches to diversify supply sources and maintain adequate power.
- Hardening overhead wire circuits, particularly those serving customers that provide critical services. These include hospitals, warming and cooling shelters, pumping stations, and first responder and emergency operations centers.
- Placing some overhead circuits underground to protect them from tree damage and avoid outages during overhead storms.
- Replacing sections of underground cable that the company’s analysis indicates are vulnerable to increasing temperatures caused by climate change.
Expanding Customer Outreach and Support
Additionally, Con Edison is proposing continued investments in customer service enhancements, and in the IT systems necessary to make it easier to do business with Con Edison while keeping critical information and systems safe from increasing cyber threats. This includes:
- Increasing customer service staff to shorten wait times and handle increased call volume.
- Expanding outreach and tools that provide language translation services to meet the needs of the region’s diverse population.
- New information technology infrastructure to expand bill payment options and cyber protections.
- Protections for its customers through enhancements in cyber and physical security capabilities to meet evolving regulatory standards and increased threats to IT systems.
What’s next?
The filing starts an 11-month Commission process that will include public hearings and opportunities for local governments, consumer groups, environmental advocates, and others to provide written testimony.
The rates the Commission sets will cover only Con Edison’s delivery of energy, not the energy itself.