In a letter to MyRye.com, Westchester County Legislator GOP candidate for the 7th District Kurt van Kuller discusses the Con Ed rate hike and points to New York States zero carbon goals as a primary cost driver. van Kuller, a Rye resident who lives in the Rye Town Park area, announced his candidacy in April.
Letter to MyRye.com:
I write today as a Con Edison customer and long-time resident of Rye. I also spent over 40 years in municipal finance and have examined many utilities. I have submitted comments previously to the Public Service Commission and have been following the public sessions held by the Westchester County Legislature on the proposed rate increases by Con Edison. Not surprisingly, these have engendered near universal condemnation of the proposed Con Edison rate hikes. No one wants to pay more on top of what are already some of the highest electric rates in the nation. Many are also using these forums to bash the utility for greed and inefficiency. We all have heard sordid tales of their poor service and inefficiency. However, what is sorely lacking in these public hearings are insights and expert testimony as to the underlying causes of these exorbitant rate requests.
This would appear to be a public relations nightmare for Con Edison. Curious, then, that Con Ed stock reached a new all-time high recently. Why? Because the market has seen all this before. In a 2022 rate case, Con Ed asked for 11.2% increase in electric and 18.2% for gas. The PSC essentially allowed that but spread it over the next three years. In the 2020 rate case, Con Ed requested 13% increase for electric and this was slashed by the PSC by about 75%. This time it asks for 11.4% and 13.3% for gas for one year. Con Ed appears to pad its requests in anticipation of their inevitable scaling back by the PSC.
The PSC is 100% responsible for Con Ed’s rates, as a regulated utility. Its ROE, dividends, and profits are approved by the PSC. The pay of the CEO, while exorbitant, costs $3 per ratepayer. No, the unfettered pursuit of corporate profits is not the main reason for the high rates we pay. One major and obvious cause for the very high bills we pay is NY State’s unique zero emission mandate. All six primary NY electric and gas utilities have rate requests now before the PSC. Con Ed’s requested increase is in the middle of the pack.
NY State’s highly aggressive zero emissions goals are driving as much as 45% of Con Edison’s latest rate request. NY’s Climate Leadership and Community Protection Act requires power generation to be 70% carbon free by 2030 and 100% by 2040. This is one of the most aggressive mandates in the world. California’s law requires 100% by 2045. Now utilities are scrambling, and we’re footing the bill.
NY is at 50% carbon free now statewide because of the head start we had from upstate hydro (only about 10% downstate). The closure of Indian Point nuclear plant in 2021 removed 2,000 megawatts of carbon-free electricity, which had powered 25% of NYC and Westchester. The prohibition on fracking deprives NY customers of cheap natural gas that would result in much lower rates for consumers. How can anyone expect these critical decisions to not to impact energy costs significantly?
This worst is yet to come. Additional sharp rate hikes tied to state mandates will be necessary after 2026 and beyond. – unless the PSC moderates the pace of change. Or we simply own up to the fact that much of this is policy driven and bite the bullet. Voters deserve transparency and an informed choice on this critical affordability issue.
-Kurt van Kuller, Candidate for Westchester County Legislator, District 7
