State Lawmakers Announce Their Involvement in Con Edison Rate Cases
Assemblymembers Burdick and Levenberg have become formal participants, as have staff from the office of Assemblymember Shimsky; Assemblymember Shimsky to conduct legal-historical research into root causes of utility’s high costs
Westchester County, NY – Two New York State Assemblymembers, Chris Burdick (D-93rd District) and Dana Levenberg (D-95th District), have formally become parties (also known as intervenors) in the Con Edison electric and gas rate cases currently being reviewed by the New York State Public Service Commission (PSC). Key staff members of a third Assemblymember, MaryJane Shimsky (D-92nd District), have also become intervenors in the case. To make sure that no stone is left unturned in reforming utilities and the rate process, Assemblymember Shimsky is using her academic background – a law degree and a PhD in history – to examine the origins and evolution of utility regulation in New York. All three offices are looking forward to participating in the process to help them better represent constituents struggling with high utility bills.
A utility rate case is a formal process through which regulated utilities like Con Edison request permission from the PSC to raise customer rates. These cases determine how much a utility can charge customers for service and how much revenue it will be allowed to collect for a specified period. Utilities are entitled to charge “just and reasonable” rates, but they are required to demonstrate why rate increases are justified.
As intervenors in these cases, participating legislators and staff will be able to access detailed filings, cross-examine the proposals, submit evidence, and participate in confidential settlement negotiations should the case follow that path. All three legislators have already submitted public comments opposing the rate increases, as have other state legislators representing the area. Westchester County and a coalition of town and village governments in Westchester have also become parties in these cases. The state lawmakers are hopeful that deeper engagement with the cases will help them gain more insight into what can be done in the future to make rates more affordable for residents.
“To best serve the community in fighting against Con Edison's unconscionable rate hike request, I am diving into the Public Service Commission's process by becoming an intervenor in this case. The process is complex and detailed, and by serving in this capacity, I will be able to get under the hood to identify opportunities and strategies,” said Burdick. “I am delighted to be joining my colleagues in collaborating on this task. I encourage Con Edison customers in my district to contact my office with their views, which will enable me to better represent my district in this process.”
“My constituents are already struggling with their Con Edison bills. The idea that Con Ed wants to raise rates further is mind-boggling to me and everyone I speak with,” said Levenberg. “I am looking forward to taking a closer look at this situation through participation in these rate cases, and my colleagues and I will continue doing everything in our power to push back against excessive increases.”
"It is critical for our constituents and our communities that we fight these exorbitant rate increases," said Shimsky. "My staff members, Pascale Jean-Gilles and David Gilbert, will be valuable participants in what I hope will be the most thorough investigation of a utility application in living memory. I will monitor the process and offer input where appropriate.”
"Bringing sanity to Westchester's electric bills will take more than a positive result on one set of rate cases, however – legislative action will undoubtedly be required,” continued Shimsky. “There are already some excellent bills that have been introduced. It is my belief that comprehensive reform will happen only if we understand how and why our regulatory system came to be what it is today; and more importantly, how and where the balance between ensuring stability for the utilities and providing reliable service at reasonable rates for the consumers came undone. I look forward to working with Assemblymembers Burdick and Levenberg, and all of my legislative colleagues, to right the balance for Con Ed's customers."
In addition to their participation in the Con Ed rate cases, the three lawmakers are also supporting multiple pieces of legislation aimed at driving down utility costs for consumers. Chief among these is the NY HEAT Act (A.4870), which would require the PSC to implement their longstanding goal of ensuring that residential gas and electric bills cost no more than 6% of a household’s monthly income. It would also end the obligation to serve gas specifically while maintaining the obligation to serve energy, enabling old, expensive gas infrastructure to be replaced with greener, less expensive options where feasible. Gas delivery charges are typically the largest portion of a Con Edison bill. The current gas case is requesting permission to pass the cost of repairing gas infrastructure – approximately $2.8 billion over three years – to ratepayers. Under New York HEAT, utilities could pay for less costly neighborhood electrification projects instead.
Other utility cost-cutting legislation the three lawmakers support includes A.1028, which would help constrain costs by requiring public utilities to adopt a common equity ratio and rate of return on equity, reducing utilities’ ability to raise rates in order to pay for higher shareholder returns. A.4249 would prohibit public utilities from using ratepayer funds to pay for lobbying and political donations. Assemblymember Burdick is the lead sponsor of A.5402, which would prevent utilities from passing excessive executive salaries and rate case expenses in excess of $100,000 on to ratepayers.
Public comment on these rate cases is being collected through November 21. An in-person public hearing is being scheduled for Westchester County residents, with further details to be announced. Residents can also share their opinions by calling the PSC’s opinion line at 1-800-335-2120. Comments can be submitted online at the Department of Public Service’s website; visit https://dps.ny.gov/how-post-comments-and-receive-updates-psc-cases for more information about how to submit comments online. Comments can also be submitted via postal mail. Send letters to: Hon. Michelle L. Phillips, Secretary, Public Service Commission, Three Empire State Plaza, Albany, NY 12223-1350. Letter writers should include the case number 25-E-0072 for the electric case and 25-G-0073 for the gas case.