You may want to prepare for higher bills next year, as Con Edison is seeking with state regulators the ability to raise residents’ electricity prices by up to 11.two%. Likewise, it seeks to increase the price of gas 18.2%.
This price increase is expected to effective as of 2023.
Con Edison said these price increases are necessary to fund clean energy investments and to upgrade its infrastructure , the latter so that customers can receive the service when there are adverse weather conditions.
The new rates were submitted to the New York State Public Service Commission, as reported in the New York Post.
Con Edison, also known as ConEd – which supplies electricity, natural gas and steam to 3.5 million customers in New York City and Westchester County – intends to use $1,200 million dollars of the additional income they will have with the increase to improve their electrical supply system; and $500 million will be used further to improve its gas distribution.
ConEd will also use money from the price increase to invest in renewable energy, such as electric vehicles, to reduce the company’s carbon footprint by 2.4 million metric tons over the next three years.
It also plans to replace main gas pipes with ones made of high-density plastic, in addition to burying electrical cables to prevent power outages during storms.
It should be noted that the cost of electricity increased from an average of ¢8.1 cents per kilowatt hour in 1985 to ¢012.5 cents that was in 2020, an increase of 66.7%, which is much lower than the inflation rate of 140.5% during the same period.
Natural gas prices skyrocketed last year and reached ni sails not seen in almost a decade. In October, the cost of natural gas, which is most commonly used to heat homes, reached $6.47 dollars per million thermal units British, the highest seen since February 2014.
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