Consolidated Edison Files Three-Year Steam Rate Plan with New York Regulators
Consolidated Edison (ED) has filed a proposed three-year steam rate plan for the period November 2026 through October 2029, seeking approval from the New York State Public Service Commission. The proposal outlines base-rate changes of $13 million, $42 million, and $39 million over the next three years, with adjusted increases via a bill-shaping mechanism to yield an approximate annual customer-bill effect of 3.5%. A surcharge may be applied if there is revenue shortfalls due to delayed billing after November's effective date. The plan offers Consolidated Edison a structured investment and recovery framework but limits return upside, with an authorized return on common equity set at 9.5%—a threshold that could trigger earnings sharing above 10%. The proposal includes $396 million in steam capital spending over three years and projects rate base growth from $2.118 billion to $2.311 billion by the third year, offering a larger earning base for the company. However, risks include potential revenue adjustments of up to $4.7 million annually if service targets are not met and limited upside in returns due to tight margins between authorized return and sharing thresholds. New York regulators may still modify the proposal before final approval.
Tickers: $ED
Topics: return on equity steam rate proposal utility regulation