01—Abstract
Summary
Summary of the 8-K filed September 4, 2026. Cited figures are marked; the original filing is the authoritative source.
Consolidated Edison Company of New York, Inc. (CECONY), a subsidiary of Consolidated Edison, Inc. (ED), has entered into a joint proposal with the New York State Department of Public Service (NYSDPS) and other parties regarding a new steam rate plan.
This proposal covers the three-year period from November 1, 2026, to October 31, 2029, and is subject to approval by the New York State Public Service Commission (NYSPSC). The Joint Proposal outlines planned base rate increases totaling $13 milliona in Year 1, $42 million in Year 2, and $39 million in Year 3. While these are the base rate changes, the company expects a consistent total bill impact of 3.5% each year, amounting to approximately $26.6 million, $27.5 million, and $28.5 million, respectively, with new rates effective November 1, 2026.
The plan also includes provisions for capital expenditures, amortization of regulatory assets, and the continuation of key mechanisms like weather normalization and cost recovery for purchased power and fuel. Importantly, it introduces negative revenue adjustments for performance targets related to service, reliability, and safety, with potential charges escalating from $4.3 million to $4.7 millionb annually.
02—Key points
Key Highlights
- A joint proposal for CECONY's steam rate plan for November 2026 - October 2029 has been agreed upon by CECONY, NYSDPS, and other parties, pending NYSPSC approval.
- The plan includes phased base rate increases of $13 million (Yr. 1), $42 million (Yr. 2), and $39 million (Yr. 3).
- A consistent total customer bill impact of 3.5% per year is projected, translating to approximately $26.6M, $27.5M, and $28.5M in new rates annually.
- Key revenue mechanisms like weather normalization and recovery of purchased power/fuel costs will continue.
- Negative revenue adjustments, starting at $4.3 million in Yr. 1 and increasing to $4.7 million in Yr. 3, are introduced if performance targets for service, reliability, and safety are not met.
- The proposal details significant capital expenditure plans, ranging from $143 million in Yr. 1 to $126 million in Yr. 3.
- The authorized return on common equity is set at 9.5%, with earnings sharing for amounts above 10% applied to reduce regulatory assets.
03—Questions
Frequently Asked Questions
What is the main purpose of this 8-K filing?
This 8-K filing announces a significant development for Consolidated Edison Company of New York, Inc. (CECONY): the entry into a joint proposal with the New York State Department of Public Service (NYSDPS) and other parties for a new three-year steam rate plan. This plan is crucial as it will govern the rates customers pay for steam service and outlines the company's operational and financial framework for the period.
What is the expected impact of the new steam rate plan on customer bills?
While the proposal details base rate increases of $13 million, $42 million, and $39 million over the three years, it specifies a consistent total customer bill impact of 3.5% each year. This translates to approximately $26.6 million in Year 1, $27.5 million in Year 2, and $28.5 million in Year 3. New rates are set to become effective November 1, 2026, upon approval by the NYSPSC.
Are there any performance-based adjustments in the new rate plan?
Yes, the Joint Proposal includes negative revenue adjustments which can result in potential charges to CECONY if certain performance targets related to service, reliability, and safety are not met. These potential charges are structured to increase annually, from $4.3 million in Year 1 to $4.7 million in Year 3.
What is the company's planned capital expenditure under this new rate plan?
The Joint Proposal outlines significant capital expenditure commitments for CECONY's steam operations. These expenditures are projected at $143 million for Year 1, $127 million for Year 2, and $126 million for Year 3, indicating ongoing investment in infrastructure and service.
04—Continue