Updated 04/22/2009 11:26 AM
Con Ed Customers Jolted By New Rate Hike
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Consolidated Edison electric rates are set to increase by 6.1 percent, after state regulators ruled yesterday that they had no choice but to approve a rate hike, despite the recession.
Typical customers will see their bills increase by about $6 a month.
The Public Service Commission says more than half of the $721 million increase will be used to pay for Con Ed's higher property taxes and assessments that go toward energy conservation initiatives.
The commission also ordered Con Ed to take cost-cutting measures, including the preparation of an austerity budget. Con Ed said it was disappointed by the decision and will look for savings wherever it makes sense.
Customers say they have little choice but to pay the higher fees.
"We need the utilities and we need food and we need transportation," said New Yorker. "Everything is going up, and it's just a very bad hardship on us."
"We have no real choice in it, so it's just kind of one of those blows you have to take, because I mean, like you said, we need electricity," said another.
The PSC approved a nearly five percent Con Ed rate hike in March of last year.