Con Edison’s Clean Energy Investments Approved by State: Critical for New York’s Transition Away from Fossil Fuels
Public Service Commission Approval of Con Edison’s Joint Proposal Supports New York’s Ambitious Climate Law, Offers Affordability Programs to Help Customers & Improves Reliability
Joint Proposal Has Broad Support from New York City, MTA, NYPA & Community, Environmental and Business Advocates
Con Edison today received state approval for critical clean energy investments that will help New York transition away from fossil fuels while enabling the continuation of Con Edison’s safe and reliable service. The New York State Public Service Commission (PSC) ruling sets electric and gas rates through 2025 and advances an investment plan totaling $11.8 billion. That plan will help reach the state and city’s clean energy goals and funds initiatives that will reduce emissions, promote resiliency, and continue improving Con Edison’s nation-leading reliability, particularly in disadvantaged communities.
Today’s approval comes after extensive engagement and negotiation with the New York State Department of Public Service (NYSDPS) and stakeholders. It was supported fully or in part by New York City and several other parties including the MTA, New York Power Authority, Natural Resources Defense Council, and New York Energy Consumers Council, among others.
“In the past, New York has built energy infrastructure with a focus on serving immediate customer needs, rather than reimagining energy for the future. But given the impacts of climate change, we know that the clean energy transition is critical for New York,” said Tim Cawley, Chairman & CEO of Con Edison. “With today’s approval from the PSC, Con Edison can further support New York’s transition away from fossil fuels by investing in the electric grid to accommodate increased demand as New Yorkers electrify their vehicles and the heating in their homes and businesses. I look forward to working with Governor Kathy Hochul and PSC Chair Rory Christian to usher in a clean energy future equitably and efficiently so every New Yorker can share in the benefits of a more sustainable grid.”
“Our customers demand safe, reliable and increasingly renewable energy,” said Matt Ketschke, President of Con Edison of New York. “This rate plan allows us to continue delivering the world-class service New Yorkers deserve with programs including undergrounding overhead lines to make them more resilient. On our gas system, we’ll maintain safety and reliability through targeted gas main replacement and advanced leak detection while supporting customers’ transitions from fossil fuels. We continue to support and invest in programs and technology that improve efficiencies to keep costs affordable and support our most vulnerable customers.”
Investing in the Community
The investments approved today are consistent with New York State’s Climate Leadership and Community Protection Act as well as Con Edison’s Clean Energy Commitment. In that policy, the company pledges to build a grid that delivers 100 percent clean energy by 2040, and will also spur infrastructure development across New York City and Westchester, with projects that include:
- The Crown Heights Network Split, which will ensure reliable service and promote electrification in the Crown Heights neighborhood of Brooklyn;
- The Williamsburg Network Improvement project, which will enable the electrification of transportation and heating in the Williamsburg neighborhood of Brooklyn;
- An expansion of capacity of the Parkview Substation in Manhattan, which will facilitate the MTA’s 2nd Avenue subway expansion and promote electrification in Mott Haven;
- The new Gateway Park Area Substation in East New York, which will support electrification and the delivery of offshore wind energy to local disadvantaged communities;
- A new energy storage system in the Glendale area of Queens and one in the Travis area of Staten Island. The State’s energy goals include the deployment of batteries, which pair well with renewable energy;
- Con Edison will continue its storm hardening program in Westchester County, adding smart switches to overhead power lines, stronger wiring and poles, and;
- In addition, the company will install elevated equipment at substations in Westchester to protect from severe flooding.
Investing in a Clean & Reliable Future
The company’s clean energy investments and programs will prevent the emission of 2.8 million tons of carbon dioxide equivalents through 2025. Some of that will come from using energy efficiency programs to reduce customers’ use of gas. The investment plan also includes funding for a range of infrastructure projects across New York City and Westchester that will enable homes and businesses to switch to clean energy alternatives, including:
- $800 million for Reliable Clean City Projects that will help build new electrical transmission lines, deliver substantial renewable energy and facilitate the retirement of fossil-fuel powered plants;
- Over $800 million in storm hardening and resiliency projects;
- $900 million in energy efficiency and clean heat funding, and;
- More than $20 million in energy storage projects.
Investing to Protect Vulnerable New Yorkers
Con Edison is making significant investments across our service territory, including in disadvantaged communities, and supports our most vulnerable customers through programs focused on bill affordability including:
- Rate relief to low-income customers enrolled in the Energy Assistance Program by targeting an electric discount program cost of $166.3 million per year and $35.8 million per year for the gas program;
- Primary Feeder Reliability Program, which will enhance electric reliability and resilience in disadvantaged communities;
- Selective Undergrounding Pilot, which will enhance electric resilience, including in disadvantaged communities;
- Glendale Substation Storage Project, which will support the distribution system serving a disadvantaged community, and;
- Programs that will help the company provide more information quicker to customers via the company website, phone and texts. Customers will see more choice, control, and convenience as they manage their usage and communicate with the company.
The Commission approved a levelized electric rate increase of $457.5 million for each of the three rate years. On a total electric bill basis, the results yield 4.2 percent, 4 percent, and 3.8 percent increases in each of the rate years, respectively. In addition, the Commission approved a levelized gas rate increase of $187.2 million for each of the three rate years. On a total gas bill basis, the results yield 6.7 percent, 6.3 percent, and 5.9 percent increases in each of the rate years, respectively.
Con Edison is a subsidiary of Consolidated Edison, Inc. [NYSE: ED], one of the nation’s largest investor-owned energy companies, with approximately $16 billion in annual revenues and $63 billion in assets. The utility delivers electricity, natural gas and steam, and serves 3.6 million customers in New York City and Westchester County. For financial, operations and customer service information, visit conEd.com.