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New York State Public Service Commission Issues Regulatory Document on Energy Efficiency and Building Electrification Portfolios

Strategic Insights

— 2 min read

The New York State Public Service Commission has issued a regulatory document outlining the energy efficiency and building electrification portfolios for the state's major utilities, including Consolidated Edison Company of New York, Inc. (Con Edison) and Orange and Rockland Utilities, Inc. (O&R). The document provides details on the energy efficiency program costs, including labor, that will be included in base rates starting January 1, 2026. Con Edison is seeking approval for its electric and gas rate plan, which will recover energy efficiency costs through a revised System Benefits Charge surcharge.

Key Takeaways:

  • The New York State Public Service Commission has issued a regulatory document outlining the energy efficiency and building electrification portfolios for Con Edison and O&R.
  • The document provides details on the energy efficiency program costs, including labor, that will be included in base rates starting January 1, 2026.
  • Con Edison will recover energy efficiency costs through a revised System Benefits Charge surcharge starting January 1, 2026, and not in base rates.
  • O&R's base rates will reflect energy efficiency program costs under its currently approved electric and gas rate plan for the period encompassing January 1, 2025, to December 31, 2027.
  • The associated labor costs were included as operations and maintenance expenses and will be deferred until the next rate case or as otherwise required by the Commission.
  • The document includes workpapers for Con Edison and O&R that provide tables displaying the energy efficiency costs scheduled for collection in base rates from January 1, 2026 to December 31, 2027.
  • Con Edison's rate plan beginning in January 2026 is contingent on Commission approval.

Statistics:

  • Energy efficiency program costs, including labor, will be included in base rates starting January 1, 2026.
  • O&R's base rates will reflect energy efficiency program costs under its currently approved electric and gas rate plan for the period encompassing January 1, 2025, to December 31, 2027.
  • The associated labor costs will be included as operations and maintenance expenses and will be deferred until the next rate case or as otherwise required by the Commission.
  • Con Edison will recover energy efficiency costs through a revised System Benefits Charge surcharge starting January 1, 2026.

Sources:

  • New York State Public Service Commission document dated August 13, 2025: Re: Case 25-M-0248: In the Matter of the 2026-2030 Non-Low-to Moderate-Income Energy Efficiency and Building Electrification Portfolios Case 25-M-0249: In the Matter of the 2026-2030 Low-to Moderate-Income Energy Efficiency and Building Electrification Portfolio.

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