NYC’s utility bills are causing sticker shock: What to do if you can’t afford them

As Con Edison seeks approval from the state to raise its rates, many customers are still reeling from sky-high energy bills over the winter.

Some have taken to Reddit, TikTok or Facebook, expressing confusion and seeking advice. Gothamist reached out to Con Edison, state officials and affordability advocates to break down the sticker shock and what New Yorkers can do if they can’t afford to pay the bills.

Understanding your Con Ed bill

Con Ed bills are broken down into roughly three buckets: taxes and fees, the cost of power, and the cost of delivery.

Taxes and initiatives mandated by the state and city governments include sales tax, the Gross Receipts Tax (or GRT) and the System Benefit Charge. These are typically costs for state funds and initiatives that are passed onto utility customers, rather than directly levied onto residents.

The property taxes Con Ed has to pay to the city are included in the utility’s rates. In 2023, the utility and its customers paid $2.4 billion in property taxes to New York City, or 8% of the city’s tax revenue, according to an economic impact report it published last year.

Supply charges are for the cost of the commodity itself, which Con Ed buys from power generators on a state-run market. This is the actual electricity generated by power plants that are mostly fueled by oil and gas, since former Gov. Andrew Cuomo shut down the Indian Point nuclear plant in Westchester. That's also led to greater strains on supply throughout the region, which hasn't helped the cost of power for consumers.

The amount per kilowatt can be affected by a number of other factors such as the weather, geopolitical events and the economy.

Finally there are the delivery charges, which are subject to rates set by the New York Public Service Commission — and are where Con Ed makes its profit. Delivery charges go up slightly each January as part of a three-year cycle based on what the state approves.

Why your bills may have been higher this year

A bitterly cold winter in New York City means customers may have used more energy to keep their homes at comfortable temperatures. Look under “supply charges” at how many kilowatts you used this year compared to last.

According to the National Weather Service’s New York office, the average temperature in Central Park this last winter — December, January and February — was 34.8 degrees, making it the coldest winter since a decade ago, when the average was 31.4 degrees.

The previous two winters were several degrees warmer, with last year's averaging at 40.6 degrees, and the winter before at 41 degrees. The colder it is outside, the more energy it takes to keep apartments at higher temperatures.

“Even if you have your thermostat at 68 degrees, that heating equipment is working that much harder to keep it at that level when it has been as cold as it was for us in New York,” said Laurie Wheelock,  head of the Public Utility Law Project, a group that advocates and litigates on behalf of New York's low-income residential utility customers.

“That's the first thing we've been flagging for people, is that actual usage," she said.

The opposite is true in summer, when a warming planet makes New York City run hotter than ever and people flock to their ACs. The biggest single days of electricity usage, or peak load, in New York City hit around mid-July, according to Con Ed.

For anyone struggling to stay warm or cool, the state offers programs for heat assistance here and cooling assistance here.

Then there are those delivery rates, which went up slightly as they tend to every year. Con Ed is currently going through the 11-month approval process for raising those again for another three-year cycle. Customers can get involved in the process by submitting public comments using this form.

What you can do if you think there was an error

OK, so you understand your bill and why it may have been higher this year. If it still doesn’t make sense, Wheelock said, the first step is to call the utility company itself.

“If you're worried your bill is really high, if you have specific areas of the bill you want to ask questions about, call Con Edison and National Grid and talk to them about it,” she advised. Con Ed provides electric service to most of New York City, and gas services to Bronx, Manhattan, and parts of Queens. National Grid provides gas to Brooklyn, Staten Island and most of Queens.

Andrea Shapiro, director of programs and advocacy at the Met Council on Housing, also recommends asking the utility company to verify that the apartment being billed isn’t on a shared meter, but an individual one.

Anne Marie Corbalis, a spokesperson for Con Ed, said if an analysis of the customer’s account identifies abnormal billing that can’t be explained by temperature fluctuations, the company will assess their meters — usually remotely since most customers have “smart meters.” If that process flags an issue, someone from Con Ed would make a field visit. Corbalis said actual meter issues, however, are rare.

If the utilities aren’t helpful, Wheelock said, the next step is to file a complaint with the Department of Public Service.

“ That can actually trigger ultimately, an investigation into what might be going on,” Wheelock said.

Consumers with complaints can visit the state’s utility consumer complaint website or call 800-342-3355.

“Inaccurate utility billing can lead to significant customer overcharges, which the department works to get refunded back to affected customers,” Department of Public Service spokesperson James Denn said in a statement to Gothamist.

According to the Public Service Commission, its staff arm fielded more than 42,000 consumer complaint calls in 2021, and returned nearly $13 million in utility consumer refunds, an increase of 75% from 2023.

What to do if you can’t afford your bill

If everything on your bill is found to be correct and you still can’t afford it, there are a few options.

For customers who can’t afford to pay the lump-sum bill, Con Ed’s payment plans and assistance options can be found here, and can ensure that service isn’t cut-off for non-payment. The company also has an energy affordability program for lower-income customers.

The utility system can be complicated to navigate, which is why Shapiro recommends reaching out to your local elected officials for help.

“They often can get a faster call with utilities, or at least go over what's happening with you,” Shapiro said. “They have lots of great constituent services people, and we pay for them, so we might as well use them.”

New York City's online Green Book has contact information for all 51 members of the City Council and five borough presidents.