Con Ed’s 2012 Electricity Prices Were Some of the Nation’s Highest

By Bill Sanderson

Nobvember 11, 2013

Consolidated Edison’s residential electricity prices in 2012 were again the highest charged by any major U.S. electric utility, according to new federal government data.

The company’s 2.1 million residential customers in New York City and Westchester paid an average 25.65 cents per kilowatt-hour in 2012—that is 115.9% over the national average price of 11.88 cents per kilowatt-hour, according to data published Friday by the U.S. Energy Information Administration.

Con Ed’s prices didn’t, however, rise as much as national average prices in 2012. Con Ed’s electric rates increased 0.23% from 2011. Nationally, residential electricity prices rose an average 1.7%.

Con Edison’s residential prices, as measured by the EIA, have long been among the nation’s highest.

Outside of Alaska, Hawaii and several small islands off the New England coast, only two utilities charged more than Con Ed last year: The Bayfield Electric Cooperative in Michigan, which has 67 customers, charged an average 28.32 cents per kilowatt-hour, and the Bear Valley Electric Service in California, with 21,905 customers, charged 27.80 cents per kilowatt-hour, the EIA data shows.

Officials at Con Ed note that up to 25% of customer bills are taxes and fees imposed by various levels of government.

“We run one of the most complex and reliable electrical delivery systems in the world. We invest in that system on a continuing basis to maintain the reliable service our customers need. At the same time, we aggressively manage our costs to protect our customers—a challenge, since New York is an expensive place to do business,” the company said in an email.

Con Ed is asking New York regulators to grant a rate increase of about 4%, which would take effect in January. Gov. Andrew Cuomo and the staff of the state Public Service Commission are pushing to lower the company’s prices.

The state Public Service Commission is expected to issue a decision on the case in December. It is possible a decision could come sooner, in the form of a settlement between Con Ed and the state.

Long Island Power Authority customers also pay some of the country’s highest rates, the EIA data shows. Last year, LIPA’s 1 million residential customers paid an average 19.03 cents per kilowatt-hour of electricity, 60.2% more than the national average. A LIPA spokesman didn’t return a call and an email seeking comment.