NEW YORK (BLOOMBERG) — Consolidated Edison Inc. can raise revenues by just 2.8% per year for three years, under an agreement adopted by New York regulators Thursday.
The deal between Con Ed, consumer advocates and other parties will raise the utility’s revenues by $234 million in the first year and more than $400 million in each of the next two years — while capping increases in customer bills at the rate of inflation, according to a statement by the Department of Public Service
Affordability was a key consideration for regulators, as power prices surge to record highs across the country. The Trump administration recently pushed for an emergency wholesale electricity auction to limit data center impact on customer bills.
While the rate increase is 85% lower than Con Ed had initially sought, it reflects a return on equity of 9.4%.
Con Ed’s rate case stretched over much of the previous year, with the company initially proposing to increase electric bills by 11.4%. New Yorkers crowded public meetings to oppose a big rate hike and Governor Kathy Hochul even called on regulators to reject the company’s proposal.
Con Ed shares fell as much as 2.5% Thursday in New York.
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