Rep. Ritchie Torres, who represents a large swath of the Bronx, is accusing utility company Con Edison of price gouging. He says Bronx customers are paying far higher rates for their gas than residents of the other four boroughs, many of whom rely on National Grid, the other gas utility company serving New York City.
Torres’ office released a report titled “An Investigative Report on Con Edison’s Overcharging of New Yorkers,” which states that regardless of customer usage, Con Edison’s rates are more than twice as high as National Grid.
The two companies divide the boroughs: Con Edison serves Manhattan, the Bronx and parts of Queens, whereas National Grid serves Brooklyn, Staten Island and parts of Queens. But Bronx customers face $1.29 delivery cost per therm — higher than Manhattan ($1.01) and Queens (92 cents) and more than twice as much as National Grid customers in Brooklyn (54 cents) and Queens (45 cents), according to the findings.
Torres accuses ConEd of lining the pockets of its CEO Timothy Cawley. He cited Cawley’s total compensation for 2023 at $16.2 million — up from $9.6 million in 2022. By contrast, the CEO of National Grid earned half as much in 2023.
“The two utilities providing the same gas service to the same city should, in theory, have the same pricing,’ Torres said in a statement. “Yet in practice, the pricing differs, and the difference is not minor. It’s massive. It’s more than 100%.’”
In response to Bronx Times inquiry, Con Edison spokesperson Allan Drury said that energy delivery rates vary between providers for reasons including “level of service, customers’ needs, the characteristics of the area and when new rates take effect.”
Drury pointed to the company’s $1 billion annual investments in clean energy and system safety but did not explain how those investments may result in higher rates for customers. Drury also said that National Grid was just approved for a rate hike starting Sept. 1, lessening the gap between the companies’ rates.
‘No incentive to lower costs’
In his report, Torres pointed out a racial and economic disparity: majority-Black and brown families in the Bronx are paying much higher rates than majority-white, wealthier families on Staten Island.
The report argues that the current regulatory system enables inefficient and expensive service for customers. The New York Public Service Commission approves utility rate increases on a three-year cycle and guarantees a 9.25% profit margin, according to the report.
“If a utility like ConEd is guaranteed a set profit margin, the utility has no incentive to lower costs and spend less,” said the report.
Torres blasted the company accusing it of unfairly gaming the system in an Aug. 16 letter to the Public Service Commission.
“Expecting ConEd customers from the poorest county to pay arbitrarily higher delivery costs for the same service violates every notion of fairness and equity,” said Torres.
The Public Service Commission is reviewing the report by Torres’ office, said the agency in response to Bronx Times’ inquiry
The agency added that Con Edison serves a larger area within and outside the city than does National Grid, which is one of many reasons for the difference in cost structures. “State regulators pore over the utility’s books to identify ways to cut costs.”
But Torres’ report called on the agency to investigate the company’s “inexplicable disparities” in pricing.
“Con Ed customers in places like the Bronx are paying as much as 200% more to subsidize a $16 million salary for the CEO,” said Torres. “This is highway robbery.”
Reach Emily Swanson at eswanson@schnepsmedia.com or (646) 717-0015. For more coverage, follow us on Twitter, Facebook and Instagram @bronxtimes
