**Con Edison Faces Revenue Proposal Amid Rising Consumer Concerns**
**New York Utility Regulator Proposes Significant Revenue Cut for Con Edison**
The New York Public Service Commission has proposed a revenue increase for Consolidated Edison Inc. that is significantly lower than what the utility requested, reflecting growing sensitivity regarding consumer electricity bills. In a recent filing, regulatory staff recommended that Con Edison be allowed to collect an additional $319 million in revenue, which is approximately $1.3 billion less than the utility’s original request. Additionally, the proposed return on equity for Con Edison is set at 9.3%, a decrease from the 10.1% the company sought. Analysts had anticipated a slightly lower return of 9.2%.
This recommendation comes at a time when utilities are under increasing scrutiny from both customers and lawmakers due to escalating electricity costs. Power companies argue that the additional funding is essential for strengthening and expanding their infrastructure to accommodate the anticipated rise in electricity demand from data centers and other industrial sectors.
“There is no question that there is a lot of sensitivity in New York about increasing electricity rates,” stated Paul Patterson, a utility analyst at Glenrock Associates. He emphasized that this is merely a staff recommendation, noting that rate cases in New York often lead to settlements among the utility, regulatory staff, and other stakeholders.
Con Edison’s initial proposal indicated that residential bills could rise by as much as 13.7%. In response, Con Edison representative Carolyn Vadino expressed the company’s awareness of consumer price concerns and indicated that they plan to continue negotiating their rate request. The final determination regarding the utility’s rate of return, which will influence customer bill increases, will be made by the state’s Department of Public Service.
Regulated utilities like Con Edison periodically seek approval from regulators to collect funds necessary for enhancing their infrastructure, alongside a specific return on their investments.
**FAQ**
**What is the proposed revenue increase for Con Edison?**
The New York Public Service Commission has proposed a revenue increase of $319 million for Con Edison, which is significantly lower than the utility’s original request of $1.3 billion.
