The Westchester Municipal Consortium (WMC) — an unprecedented coalition of 40 local municipalities that joined forces to become a party to Con Edison’s 2025 electric and gas rate case filings before the New York State Public Service Commission (PSC) announced that a three-year settlement agreement (known as a Joint Proposal) has been formally reached between Con Edison, the PSC staff, and other parties.
The terms of the filed agreement are now public and represent significant progress for Westchester residents and businesses in ensuring fairer and more transparent utility practices.
The Joint Proposal substantially reduces Con Edison’s original rate requests and includes several key provisions advanced by the Westchester Municipal Consortium. Because these provisions were successfully incorporated into the three-year settlement, the Consortium will not oppose the agreement.
The Joint Proposal itself states: “The Westchester Municipal Consortium will also not oppose this negotiated Proposal, which substantially reduces the Company’s initial rate proposals and includes provisions sought by the Westchester Municipal Consortium.”
Settlement Includes Major Reductions in Originally Proposed Rates
Con Edison’s original proposed electric rate increase of 13.4% has been reduced to 2.8% on the total customer bill under the settlement. On the gas side, the original propose 19% increase has been reduced to 2% on the total customer bill. The agreement spans January 1, 2026, through December 31, 2028, with similar annual increases of approximately 2.8% (electric) and 2.0% (gas) in the second and third years.
Key Westchester-Specific Provisions Secured
The Joint Proposal includes several items specifically negotiated by the Westchester Municipal Consortium to address longstanding disparities and improve communication and transparency:
• Annual Westchester Capital Investment Meetings
Con Edison leadership — including senior engineering and operations staff — will meet annually with Westchester municipalities to review capital project plans and compare investment levels in Westchester versus New York City. The meetings will also address storm preparedness, double-pole removal, streetlighting, and the impact of data centers on the local grid.
• Underground vs. Overhead Cost Analysis
Responding to WMC’s request, Con Edison agreed to conduct an informational analysis comparing the relative costs of its underground network system (predominant in New York City) and its overhead radial system (predominant in Westchester County and Staten Island). This study will help determine whether any cross-subsidization exists between regions and will be shared prior to the Company’s next rate filing.
“While the reductions do not go as far as we had proposed, they are a substantial move in the name of affordability, and the requirements for more disclosure and transparency on capital projects and the costs of overhead vs. underground systems are major gains for our County,” said Joel Dichter, Counsel for the Westchester Municipal Consortium. “This outcome reflects how much can be accomplished when Westchester’s municipalities stand together for a common goal.”
Next Steps and PSC Review
The Westchester Municipal Consortium will prepare and submit formal comments on the Joint Proposal to the Public Service Commission. The PSC will then conduct an evidentiary hearing to evaluate the settlement’s terms before issuing a final decision.
“There is no doubt that Westchester’s municipalities banding together had a substantial impact on the results,” said Hastings-on-Hudson Mayor Nicola Armacost who is also President of the Westchester Municipal Officials Association. “This collaboration ensured our communities were heard at the state level and will continue to give us a voice in how utility investments are made in Westchester.”
About the Westchester Municipal Consortium
The Westchester Municipal Consortium (WMC) is composed of 40 unified municipalities throughout Westchester County that are served by Con Edison and came together to work collaboratively to ensure fair utility practices, equitable infrastructure investments, and transparent communication between local governments, the utility, and state regulators.
“This outcome is a huge win for the residents of Rye Brook, and for the residents of Westchester County as a whole who are in the Con Ed territory” said Rye Brook Mayor Jason Klein. “We are grateful that so many municipalities joined this effort to show the true power of a unified voice in advocating to alleviate the overburdening costs of electricity and gas in our area. Rye Brook is proud to have taken a leadership role in this endeavor, and we look forward to future municipal collaborations for the benefits of all of our residents.”