Hundreds of thousands of households in New York are cutting their other expenses to make up for the higher energy costs. This is causing the utilities industry to invest more in solar energy. ConEd the largest utility in the city, has pledged to switching to 100 percent 100 clean electricity by 2040. However it is still anticipated that the price will rise.
According to ConEd’s website it is planning to invest in clean heating, electric vehicles, and building electrification. It plans to construct three new transmission projects to achieve state climate goals. As of 2021, ConEd is generating an annual net profit of $1.3 billion. ConEd will have to pay $2.5 billion in property tax by 2023. In addition, ConEd must invest in natural gas infrastructure in order to ensure that energy costs are kept low.
Con Edison rate increases have been opposed by a variety of state legislators. Many state officials claim that New Yorkers aren’t given their say in regards to possible rate hikes. In a letter to the New York Public Service Commission over 50 lawmakers wrote that “Con Ed uses its financial leverage to force rate increases that aren’t reasonable, necessary or in the public interest.” They also want the commission to reject the rate increases.
Some New Yorkers have seen their Con Ed bills triple or double in the last month. One reporter saw a rise of $200 to $915 a month. Con Ed spokesperson says that even customers who consume less energy will be charged more expensive bills. ConEd will be demanding that customers spend more money to upgrade their systems as well as to pay more expensive gas distribution in the coming months.
ConEd plans to replace gas mains with high-density plastic pipe to reduce costs for energy. ConEd plans to invest in clean heat technologies and solar energy systems that can be utilized in buildings. Since many years, it has been working on sustainability initiatives. ConEd has built numerous solar and wind projects in the United States. However, ConEd has yet to be granted the BBB accreditation.
Despite its progress toward shifting to clean energy, ConEd cannot manage the financial practices of private power generators. In fact, the majority of the company’s power plants rely on natural gas. Natural gas costs will increase by $75 million, mainly due to higher property taxes. ConEd has also been making progress in electrifying buildings, but will need three more transmission projects to meet the state’s climate targets.
ConEd offers payment plans that assist customers with their high energy bills. Payment arrangements are based on a household’s income and balance. People who qualify for the supplemental security income or public assistance will not need to make a deposit. Customers in financial trouble will need to make a deposit.
ConEd plans to upgrade the electrical systems in buildings, including installing smart meters and undergrounding overhead electric cables. It also has plans to invest more in solar and wind projects, including a community solar project.