Trifecta of NYC utility hikes could bring double-digit increases: What to know

Utility rates have been on the rise for city residents and are set to go up even more this summer. Ratepayer advocates say New Yorkers will pay roughly $53 a month more than last year because of three main hikes:

• A 9% rate hike from New York City’s Water Board set for July
• A proposed 11% increase over three years for natural gas customers in Queens, Brooklyn and Staten Island that could hit this summer
• A 12% rate hike from Con Ed for electricity and 19% increase for natural gas over three years, which is already underway as part of a state-approved plan

“We do see this growing financial pressure that people of all income brackets are struggling with,” said Laurie Wheelock, executive director of Public Utility Law Project. “It can be very confusing, and at the end of the day the most important thing is being prepared for when these increases are coming.”

Here’s a breakdown on why each bill is going up and what you might be able to do about it.

Adams’ “backdoor” water tax

The cost of water is scheduled to go up July 1 due in part to Mayor Eric Adams' decision to again charge New Yorkers rent for the system’s water and sewer pipes.

The rental charge dates back to 1985, when the city needed to repay infrastructure debt. The city built and owns the water infrastructure but “rents” it to the New York City Water Board, a practice former Mayor Bill de Blasio ended in his first term. Any money not used for water infrastructure goes right into the general fund.

According to budget documents, Adams plans to reintroduce the rental fee, which will amount to $1.4 billion over the next four years in order to plug budget holes.

“This is a ripoff, a backdoor tax of epic proportions,” said Councilmember James Gennaro from eastern Queens, who chairs the environment committee. “This is the most regressive taxation that one can imagine because we're taxing the residents of New York City based on how much water they use.”

The Water Board approved begrudgingly approved last week while saying doing so could harm the city’s ability to respond to climate change.

Only property owners pay directly for water, but landlords tend to build the extra cost into the rent they charge. Although other utility bills have a regulator to push back on rate hikes, Adams has sole authority over the rental charges to the water board.

City Hall did not respond to questions about how long this rental charge would last but said city services could be cut without the increase.

Mayoral spokesperson Liz Garcia said that “New York City continues to keep water rates low, with New Yorkers paying less than the average American living in a large metro area.”

More for gas

National Grid, which supplies natural gas to Brooklyn, Queens and Staten Island residents, is in the process of asking the state’s Public Service Commission for a rate increase that will raise the average natural gas bill by roughly $30 per month. The new charge could take effect as soon as July, according to opponents of the increase.

National Grid reached an agreement with the Public Service Commission in April, likely making the increase a matter of when, not if. The average monthly bill will increase by $64 per month by the end of 2026, according to the company.

National Grid is an investor-owned utility that paid investors $922 million in dividends last year, according to its most recent annual report.

Company spokesperson Alexander Star, said the utility needs to raise rates because of “federal and state safety mandates, as well as increased property taxes and the costs to deliver expanded energy efficiency.”

Opponents of National Grid’s rate increase called this “disinformation.”

“They’re saying, ‘Oh, this is about safety and reliability’ when it's really not,” said Kim Fraczek, director of the environmental group Sane Energy Project. “It's about them making deep investments in fossil fuels so their stock prices go up.”

National Grid initially asked for a much larger rate increase, but scaled it back amid opposition, as is typical in a rate case. According to the city’s utility advocacy office, the compromise comes with programs for low income New Yorkers and non-English speakers.

“We were able to secure greater protections to prevent people from getting cut off of gas service in the winter during cold snaps,” said Katie Schmid, deputy executive director of the Mayor’s Office of Climate and Environmental Justice.

Paying more for power

Last summer, regulators approved a hike for Con Ed, which provides electricity in all five boroughs and natural gas in Manhattan and the Bronx. The final third increase will take effect next January at a rate of 4% for electric and 6% for gas.

“We expect that once they get close to the third year is usually when they will file the next rate case,” said Wheelock, the public utility lawyer. “So it's really almost an annual increase that the public should expect.”

Con Ed is also an investor-owned utility and paid investors $1.1 billion in dividends in 2023, according to its last annual report. The company said it needs the extra revenue to pay for upgrades, including measures to meet New York state’s ’s climate laws.

During this most recent rate increase negotiations with regulators and advocates, Con Ed agreed to not shut off anyone’s electricity during extreme heat emergencies, when the temperature is above 90 degrees.

What can New Yorkers do about an increase

Each utility's webpage and billing statements contain links to state and local financial assistance programs. Here are Con Ed’s and National Grid’s.

The New York State Energy Research and Development Authority’s website lists additional programs.

The Public Utility Law Project also offers a hotline (1-800-342-3355) for guidance on which programs New Yorkers might be best suited.

“Those are really for low-income households,” Wheelock said. “But the state has started to have conversations over the last couple of years about moderate-income support.”