May 5, 2007 4:28 pm US/Eastern
Con Ed Seeks 11.6 Percent Rate Increase
NEW YORK (CBS/AP) ―
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Power company Consolidated Edison Inc. said Friday it is asking New York state regulators for a rate increase that would mean a 11.6 percent average hike in customers' electricity bills effective next April.
AP
Power company Consolidated Edison Inc. said Friday it is asking New York state regulators for a rate increase that would mean a 11.6 percent average hike in customers' electricity bills effective next April.
The proposal, if approved by New York regulators, would bring in an added $1.2 billion in revenue, the company said.
Con Edison, which serves 3 million customers in New York City and its suburbs, said it expects the New York Public Service Commission to review the rate increase for up to a year. Con Ed also is asking regulators for an additional $335 million in revenue for 2009 and $390 million in revenue for 2010.
The increase applies to charges for the transmission and delivery of power to homes, a company spokesman said. Customers under New York's electricity deregulation plan have the ability to choose alternative power suppliers but distribution charges are state-regulated.
Under the company's proposal, residential customers would see an increase in their bills of 17 percent, or $12 per month for a household with a $70 monthly power bill. Business customers would be hit with a monthly increase of $235, or 10.7 percent, for a business with a $2,200 monthly power bill.
Con Edison also said it was proposing measures to improve energy efficiency to curb rising power demand, as power demand is expected to exceed supply in New York City by 1,000 megawatts in less than 10 years.
Last summer, about 174,000 people in Queens lost service for up to a week. Residents sweltered without air conditioners on some of the hottest days of the year, and estimates of business losses ran into the tens of millions of dollars as stores were forced to throw out perishable goods. The Public Service Commission issued a blistering report saying the utility needed to make "substantial" improvements.
Mayor Michael Bloomberg said in a statement Friday that the decision on the rate increase should be made "on the merits, not on politics."
Power rates have been soaring around the country, prompting a political backlash against electricity deregulation from consumers and lawmakers over the past year, notably in Illinois and Maryland.
An Associated Press analysis of federal data found last month that consumers in the 17 deregulated areas paid an average of 30 percent more for power in 2006 than their counterparts in regulated states, up from a 24 percent gap in 1990.
Shares of Consolidated Edison fell 22 cents to $51.36 in midday trading Friday.
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.
(© 2007 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)
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