Mar 5, 2007 6:54 pm US/Eastern
Con Ed Announces Rate Increase
by Ti-Hua Chang
NEW YORK (CBS) ―
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Con Edison announced today that electricity rates will be on the rise in April, with even more increases planned for next year.
CBS
Con Edison announced today that electricity rates will be on the rise in April, with even more increases planned for next year.
The $11 billion utility is receiving heat from its customers for the move, and will likely receive even more when it asks for another increase -- potentially an even larger one -- in May for next year.
"Big shots relax while I work 12 to 14 hours a day to pay their bills. It's ridiculous," said Con Ed customer Nick Valerianos.
Mayor Michael Bloomberg argues otherwise, however. "Con Ed is a for-profit company and needs the money to invest. There's no point in crticizing unless you want to get your name in the paper," he said Monday.
According to the company, the increase will start April 1 as residential bill will go up 3.3 percent to a monthly average of $61.77. Small business bills will go up 2.8 percent to an average of just over $120. Then in April 2008, there could be a substantial increase if approved by the New York Public Service Commission.
Con Ed officials issued a statement to CBS 2, saying the rate increases are needed to make repairs and to "address future needs." The spokesman also added that the company "plans to spend $1.5 billion per year ... over the next five years for electric delivery."
Because the PSC publicly criticized Con Ed's performance in Queens during last summer's blackout, it appears now that there should be a battle over the new rate increases for next year.
You can comment on the Con Ed rate increases for next year by
clicking here. This year's rate increase was approved two years ago.
(© MMVII, CBS Broadcasting Inc. All Rights Reserved.)
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