ConEd Eyes Rate Raise As NYC Faces Coronavirus, Hurricane Season

NEW YORK CITY — ConEd wants to increase its prices as New Yorkers grapple with the new coronavirus crisis, the relaunch of a complete economic shutdown and a potentially brutal hurricane season ahead.

City Council members balked at the proposed rate hike during a consumer affairs committee hearing exploring how prepared New York City will be for extreme heat and blackouts this summer.

Not only must New York engineer the complete restart of its economy and protect residents from the dangerous virus that's already claimed an estimated 21,314 lives, the city must also prepare for a storm season that could see double the usual number of major hurricanes.

"To have an electrical rate increase ConEd is proposing is kinda a kick in the head to New Yorkers," said Council Member Robert Holden during City Council hearing Tuesday. "I don't think now's the time."

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Representatives from ConEd, New York City's power supplier, argued rate increases were necessary to make needed to pay taxes and make needed improvements in the wake of a heat season unlike any other it has seen before.

Social distancing measures will drastically change how ConEd responds to blackouts, officials argued, because responders will not be able to work as closely or meet in tight groups to plan a response, testified Kyle Kimball, ConEd vice president of government relations.

"Our ability to respond to events both in the street and as a corporation are going to be tested by social distancing and COVID-19 measures to keep our workers safe," said Kimball. "That's just something we've never had to deal with."

There are also concerns that power usage will increase in residential areas because New Yorkers will not be going into the office, out to movie theaters, or traveling for vacations, even though the overall power usage is projected to drop about 10 percent.

And New York City's Emergency Management office hopes to install 74,000 air conditioners in low income housing, building that typically don't have the most stable wiring to begin with, by July, said Commissioner Deanne Criswell.

"It's going to be more difficult for us," said ConEd engineering and planning vice president Patrick McHugh. "We're going to have to be engaged every week."

Yet the ConEd reps did their best to assure lawmakers the utility had shored up its infrastructure in Flatbush — where 14,000 lost power for days last summer — and increased power capacity in 29 NYCHA houses to allow for increased air conditioner use.

ConEd has since invested $1.3 billion in its power system to upgrade the Flatbush grid, replace cables and switches and install a new control system, McHugh testified.

Projections for this summer show the city will use a peak 12,000 megawatts — roughly the same amount that shut down Flatbush, said McHugh.

Eight emergency generators have been added to ConEd's stock of 12, the representatives said.

When quizzed about the rate increase, which would add at least $3 to the average $84 monthly bill, ConEd reps were quick to note they'd waived late fees, suspended power shut-offs and set up payment plans for newly unemployed New Yorkers unable to pay their bills.

But City Council Member Justin Brannan took umbrage over rate increases, noting his district in Bay Ridge loses power every summer, and what he characterized as their laissez-faire attitude.

"We're having more stress on the grid because more people are staying home because of COVID," Brannan said.

"I don't feel that you're worried. It definitely seems like we're more worried than you are."

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