New Yorkers will soon face higher electricity and gas bills after state regulators approved new rate increases, adding to household expenses that have steadily climbed in recent years.
Although the adjustments appear modest on a yearly basis, they could accumulate over time for customers already managing rising living costs.
The New York Public Service Commission, which regulates utilities statewide and evaluates requests for rate changes, approved the rate increases for Con Edison customers on Jan. 22.
Electricity rates will rise by 3.5% in 2026, followed by increases of 3.2% in 2027 and 3.1% in 2028. For New York City residents, this translates to an average monthly increase of about $6.88 this year.
Gas bills will increase by 4.4% in 2026, with additional hikes of 5.7% in 2027 and 5.6% in 2028. The changes will add roughly $10.67 per month to bills this year.
The rate adjustments take effect retroactively from Jan. 1. Con Edison had initially proposed significantly steeper hikes last year, with increases of about 13% for gas and 19% for electricity, before regulators negotiated lower rates.
The proposal drew opposition from public officials and advocacy groups. More than 70 city and state leaders urged regulators to reject the plan earlier in the process.
Affordability concerns have intensified as energy costs rise. AARP previously reported that roughly 1 million Con Edison customers received shutoff notices last year due to unpaid bills, highlighting financial strain among residents.
Despite expanded state relief efforts, enrollment has remained low. Only 775 of nearly 600,000 potentially eligible Con Edison customers signed up for the state’s broadened Energy Affordability Program after it launched, according to Gothamist. The program offers monthly discounts that can exceed $135 for qualifying households in NYC.
Advocates say slow enrollment may reflect limited awareness and a demanding application process. Critics argue the approved hikes add to affordability challenges for residents already coping with inflation and elevated living costs.
Con Edison, however, said the increases will help finance infrastructure upgrades designed to strengthen the power grid. Company officials cited reliability improvements, extreme weather preparation, inflation and higher operating expenses as key factors behind the request.
