Charlottesville, Virginia (Platts)--25Jan2013/304 pm EST/2004 GMT
Consolidated Edison Friday asked New York regulators to approve a $400 million electric and gas rate hike for 2014 to help pay for $1 billion in infrastructure upgrades needed to harden the system against future storms. The utility hopes to avoid future outages in the greater New York City area like those caused in October by Hurricane Sandy, which left 1 million people without power, some for weeks. The $1 billion plan submitted to the Public Service Commission includes undergrounding targeted distribution lines, putting flood-proof equipment in low-lying areas and building higher flood walls. The utility said it hopes to recover some of the $1 billion through federal funds and also plans to talk with state regulators about extending rate increases beyond 2014. The plan would raise electric rates by $375 million, or 3.3%, and gas rates by $25 million or 1.4%. An average residential electric bill would rise from $81.64 to $84.55/month and gas bill from $187.68 to $190.35/month. The utility had planned to file for a rate increase in November, but postponed it as it worked on Sandy cleanup Craig Ivey, Con Edison president, said in a statement that while the economy is improving, the utility is "still working diligently to hold down costs for our customers. At the same time, the increased frequency and damage of storms assaulting our area presents a major challenge. We must invest in our systems in new ways to maintain the safe, reliable service our customers deserve." The rate plan will undergo an 11-month review by the PSC, and if approved begin January 1, 2014.--Lisa Wood, newsdesk@platts.com --Edited by Jeff Barber, jeff_barber@platts.com