ED · 10-Q · 2026Q3 · Full report
State Utility Regulation
CONSOLIDATED EDISON INC · 2026-11-05 · Importance 53 · Surprise 60 · In source text
New York enacted Chapter 58 of the Laws of 2026 in May 2026, with provisions applying to utility base-rate filings submitted after January 1, 2027. The law requires a budget-constrained rate-plan proposal limiting aggregate revenue increases to average CPI growth over the prior three years, provides for returning revenue above authorized ROE subject to a limited retention provision, and extends the NYSPSC’s rate-case suspension authority to 14 months. It also establishes affordability analyses and performance-based employee compensation targets, authorizes consideration of ROE adjustments based on affordability, limits recoverable rate-case expenses, and permits multi-year litigated rate plans. The Utilities are assessing the law’s impact and the timing of upcoming rate filings.
Key facts
- In October 2026, the NYSPSC authorized O&R’s Haverstraw West Loop project to advance to Stage 3, with authorized project costs capped at $50.1 million less any non-ratepayer funding sources received. source
- Chapter 58 applies to utility base-rate filings submitted after January 1, 2027, and requires a budget-constrained rate plan limiting aggregate revenue increases to average CPI growth over the prior three years. source
- Chapter 58 directs utilities to return revenues above authorized ROE, while allowing retention of up to 0.25% above authorized ROE if criteria are met. source
- Chapter 58 extends the NYSPSC’s authority to suspend a rate case to 14 months and authorizes approval of multi-year litigated rate plans. source
- In April 2026, the NYSPSC authorized CECONY to add a Bring Your Own Battery program for customer-sited storage under 50 kW, enabling participation in demand response and incentives for supporting the energy system during high-demand periods. source
- The NYSPSC authorized recovery through an electric customer surcharge mechanism of O&R’s prudently incurred Stage 3 costs for West Loop and Stage 1 and 2 costs for West Loop and another project that was not authorized to proceed. source
- The NYSPSC did not authorize CECONY’s UTEN pilot projects to proceed to Stage 3, but authorized CECONY to defer prudently incurred Stage 1 and Stage 2 development costs for future rate recovery. source
- CECONY will implement the BYOB program and file associated tariff changes in accordance with the NYSPSC’s order. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| cash | negative | probable | -0.0% | In October 2026, the NYSPSC authorized O&R’s Haverstraw West Loop project to advance to Stage 3, with authorized project costs capped at… |
| revenue | negative | contingent | — | Chapter 58 applies to utility base-rate filings submitted after January 1, 2027, and requires a budget-constrained rate plan limiting… |
| operating_income | negative | contingent | — | Chapter 58 directs utilities to return revenues above authorized ROE, while allowing retention of up to 0.25% above authorized ROE if… |
| operating_income | positive | contingent | — | Chapter 58 directs utilities to return revenues above authorized ROE, while allowing retention of up to 0.25% above authorized ROE if… |
| revenue | negative | contingent | — | Chapter 58 extends the NYSPSC’s authority to suspend a rate case to 14 months and authorizes approval of multi-year litigated rate plans. |
| revenue | positive | committed | — | The NYSPSC authorized recovery through an electric customer surcharge mechanism of O&R’s prudently incurred Stage 3 costs for West Loop… |
| assets | positive | committed | — | The NYSPSC did not authorize CECONY’s UTEN pilot projects to proceed to Stage 3, but authorized CECONY to defer prudently incurred Stage 1… |