Consolidated Edison, Inc. (NYSE:ED) filed an 8-K on September 4, 2026, disclosing that its subsidiary Consolidated Edison Company of New York, Inc. (CECONY) entered into a joint proposal with the New York State Department of Public Service and other parties for a three-year steam rate plan covering November 1, 2026 through October 31, 2029, subject to approval by the New York State Public Service Commission.

Key Highlights

  • Base rate increases: The proposal calls for base rate changes of $13 million in Year 1, $42 million in Year 2, and $39 million in Year 3, implemented on a shaped bill impact basis resulting in a consistent total bill impact of 3.5% each year.
  • Average rate base: Average rate base is set at $2,118 million in Year 1, $2,234 million in Year 2, and $2,311 million in Year 3, according to the filing.
  • Authorized return on common equity: The joint proposal sets an authorized return on common equity of 9.5 percent, with a common equity ratio of 48 percent.
  • Capital expenditures: Planned capital expenditures total $143 million in Year 1, $127 million in Year 2, and $126 million in Year 3.
  • Negative revenue adjustments: Potential charges if certain performance targets are not met range from $4.3 million in Year 1 to $4.5 million in Year 2 and $4.7 million in Year 3.
  • Weighted average cost of capital: After-tax weighted average cost of capital is 7.07 percent in Year 1, 7.14 percent in Year 2, and 7.19 percent in Year 3.

CECONY Steam Rate Joint Proposal: Key Terms and Financial Details

According to the filing, CECONY, the New York State Department of Public Service, and other parties entered into the Joint Proposal on September 4, 2026. The proposal covers steam service rates for the three-year period beginning November 1, 2026. The filing notes that new rates will be effective as of November 1, 2026, and that CECONY will begin billing customers at the new shaped rate once the Joint Proposal is approved by the NYSPSC. Any shortfall in revenues due to the timing of billing to customers will be collected through a surcharge, the filing states.

The filing discloses that the cost of long-term debt is projected at 4.86 percent in Year 1, 5.00 percent in Year 2, and 5.10 percent in Year 3. Net utility plant reconciliation figures are set at $2,147 million, $2,165 million, and $2,145 million for Years 1 through 3, respectively. Regulatory reconciliations under the proposal cover pension and other postretirement benefits, variable-rate debt, property taxes, municipal infrastructure support costs, and environmental site investigation and remediation expenses, according to the filing.

The filing also discloses that $0.5 million in annual steam revenue requirement ($1.5 million over three years) will be recovered through a rate adjustment mechanism, subject to refund to customers relating to the NYSDPS' review of CECONY's steam main welds. Additionally, the filing notes that the NYSDPS continues a focused operations audit to investigate CECONY's income tax accounting, and that any adjustment ordered by the NYSPSC is expected to be refunded to or collected from customers as determined by the NYSPSC. The filing states that the information in the report includes forward-looking statements that "speak only as of that time" and that "actual results or developments might differ materially."

What Was Disclosed

Consolidated Edison, Inc. and CECONY filed an 8-K disclosing a joint proposal for a three-year steam rate plan from November 2026 through October 2029, covering base rate changes, capital expenditures, rate base, cost of capital, and performance targets, all subject to NYSPSC approval.