The settlement sits between the two published benchmarks. Con Edison had sought $66 million of first-year steam revenue recovery, while NYSDPS staff had recommended $18 million; the agreement’s shaped first-year increase is $26.6 million, making it a clear reduction from management’s ask but an improvement over the regulatory starting point.
| Measure | Yr. 1 | Yr. 2 | Yr. 3 |
|---|---|---|---|
| Shaped base-rate increase | $26.6M | $27.5M | $28.5M |
| Reported base-rate change | $13M | $42M | $39M |
| Capital expenditures | $143M | $127M | $126M |
| Average rate base | $2,118M | $2,234M | $2,311M |
| Weighted average cost of capital | 7.07% | 7.14% | 7.19% |
| Negative revenue adjustment exposure | $4.3M | $4.5M | $4.7M |
The economic outcome is steadier than the headline base-rate figures suggest. The filing says customer bills will rise by a consistent 3.5% each year through a shaped-rate structure, with new rates effective November 1, 2026. (Joint Proposal summary)
The settlement preserves a constructive rate-base framework but trims upside versus the original filing. CECONY receives a 9.5% authorized return on equity and average rate base rises from $2.118 billion in Year 1 to $2.311 billion in Year 3 (Joint Proposal summary), but capital spending is also below the company’s original proposal of $189 million, $200 million and $220 million per year.
The main read is mixed rather than a clean win. Compared with the company’s proposal, the agreement lowers near-term revenue recovery and investment allowances; compared with NYSDPS staff’s recommendation, it is materially better. It also includes customer-protection features, including potential negative revenue adjustments of $4.3 million to $4.7 million annually and earnings sharing above a 10% threshold (Joint Proposal summary).
Approval remains the immediate gating item. The parties have signed the three-year plan, but the filing explicitly says it is subject to approval by the New York State Public Service Commission. 〔0〕
Read the original 8-K on SEC EDGAR ↗