Consolidated Edison (ED) Filed a Three-Year Steam Rate Plan. Is Limited Return Upside Enough?

Consolidated Edison filed a proposed three-year steam-rate plan, effective November 2026 through October 2029, covering base-rate changes of $13 million, $42 million, and $39 million. A bill-shaping mechanism would implement corresponding increases of $26.6 million, $27.5 million, and $28.5 million, amounting to a 3.5% total customer-bill effect per year.

The plan requires approval from the New York State Public Service Commission. Consolidated Edison aims to invest $396 million in steam capital spending over three years, with an average rate base increasing from $2.118 billion to $2.311 billion, representing a 9.1% cumulative growth. The authorized return on common equity is 9.5%, with a 48% common-equity ratio, leaving limited upside potential from outperforming the settlement assumptions.

However, the proposed plan provides predictability and a clearer path for rate-base growth and cost recovery through 2029.