Consolidated Edison, Inc., widely recognized as Con Edison or ConEd, serves as the vital energy backbone for New York City and Westchester County. As one of the largest investor-owned energy companies in the United States, it operates a vast and intricate infrastructure that delivers electricity, natural gas, and steam to millions of residents and hundreds of thousands of businesses. With a heritage stretching back to 1823, the company is not merely a utility provider but a central figure in New York’s economic stability and its ambitious transition toward a sustainable energy future.

Providing essential services to a region that constitutes the largest economy in New York State, Con Edison manages a complex system designed to meet the high expectations of a 24/7 global hub. In recent years, the company has pivoted its strategy to align with the New York State Climate Leadership and Community Protection Act (CLCPA), focusing on grid modernization, renewable energy integration, and resilience against the increasing frequency of extreme weather events.

The Scope of Con Edison Operations

The scale of Con Edison's service territory is immense, covering all five boroughs of New York City—Manhattan, Brooklyn, Queens, the Bronx, and Staten Island—along with most of Westchester County. Through its primary subsidiary, the Consolidated Edison Company of New York (CECONY), the organization provides energy to approximately 9 million people.

Beyond the immediate New York City area, the company operates Orange and Rockland Utilities (O&R), which serves customers in southeastern New York and northern New Jersey. Additionally, Con Edison Transmission, Inc. focuses on investing in large-scale electric and natural gas transmission projects that bolster the regional energy supply chain.

Delivering Electricity to the World’s Most Dense Urban Environment

The electric delivery system managed by Con Edison is a marvel of urban engineering. It includes one of the largest and most complex underground electric systems in the world. Unlike many cities where power lines are primarily overhead, the high density of Manhattan and other New York boroughs necessitates that a significant portion of the grid be buried beneath the streets.

This underground network offers several advantages, most notably protection from wind and ice storms. However, it also presents unique challenges, such as the need for specialized cooling and the difficulty of accessing equipment for repairs under active city streets. To manage this, Con Edison employs advanced sensors and AI-driven algorithms to detect potential equipment failures before they result in outages.

The World’s Largest Commercial Steam System

One of the most distinctive aspects of Con Edison's service is its steam system. Operating the largest commercial steam network globally, the company provides thermal energy to approximately 1,500 large customers in Manhattan. This system is crucial for the heating, cooling, and sterilization needs of iconic New York landmarks, including the Empire State Building, the United Nations headquarters, and major hospital complexes.

Steam production is highly efficient, often utilizing cogeneration—a process that simultaneously produces electricity and thermal energy. This reduces the total carbon footprint of the buildings served compared to individual on-site boiler systems.

Natural Gas Distribution and Safety

Con Edison provides natural gas to approximately 1.1 million customers. In recent years, the focus for the gas division has shifted from expansion to safety and emission reduction. The company is actively replacing aging cast-iron and unprotected steel mains with durable plastic piping. This modernization effort is critical for preventing leaks and reducing methane emissions, which is a potent greenhouse gas.

What is the Con Edison 2025-2027 Investment Plan?

In early 2025, Con Edison submitted a comprehensive investment proposal to the New York State Public Service Commission (PSC). This plan outlines more than $21 billion in infrastructure investments over a three-year period. The primary goal is to maintain world-class reliability while facilitating the massive shift toward electrification in buildings and transportation.

The plan identifies several key projects designed to address growing demand and environmental goals:

  • Eastern Queens Substation Complex: This major project is designed to support the redevelopment of JFK International Airport and the electrification of MTA bus depots. As more heavy-duty vehicles transition to electric power, the local grid requires significantly higher capacity.
  • Brooklyn Clean Energy Hub: This facility is intended to unlock renewable energy sources, such as offshore wind, and integrate them into the local distribution network. It will serve as a critical gateway for bringing carbon-free power to some of New York's most densely populated neighborhoods.
  • Grid Resiliency and Weather Hardening: Building on lessons learned from Superstorm Sandy, the company continues to invest in flood-proofing substations, installing smart switches that can isolate outages, and reinforcing overhead lines in Westchester and the outer boroughs.

Why Are Utility Rates Increasing?

The proposed investments would require adjustments to customer rates. Con Edison has estimated that the new plans would result in an average electric bill increase of approximately 11.4 percent and a gas bill increase of 13.3 percent, starting in 2026. These figures are subject to intense regulatory review and public comment before a final decision is made by the PSC.

Several factors contribute to these rising costs. Beyond the direct costs of new infrastructure, property taxes on energy equipment account for a significant portion of the increase. In fact, Con Edison estimates that property taxes account for nearly 27 percent of the proposed electric revenue increase. The company has expressed a willingness to work with policymakers to find ways to direct more of this tax revenue back toward low-income customer relief.

Economic and Community Impact in New York

Con Edison is a primary driver of the New York economy. According to its 2024 Impact Study, the company’s operations generate approximately $23 billion in total economic output, representing about 1 percent of the entire state's Gross Domestic Product (GDP).

Job Creation and the Workforce

The company supports approximately 38,000 jobs across New York State. This includes its own workforce of 14,000 employees, many of whom are members of Local 1-2 of the Utility Workers Union of America or Local 3 of the International Brotherhood of Electrical Workers. Con Edison jobs are known for being stable, well-paying, and providing a path to the middle class without requiring a four-year college degree for many technical roles.

Furthermore, Con Edison’s commitment to local business is substantial. In 2024, the company spent $2 billion on contracts with businesses in New York State and New York City. A significant portion of this—$500 million—was directed toward small and diverse businesses, fostering economic equity across the five boroughs and Westchester.

Fiscal Contributions to the City and State

In 2024 alone, Con Edison contributed $4.7 billion in taxes and fees to New York State, with $3.3 billion staying within New York City. These funds are essential for the operation of the city, supporting the salaries of teachers, firefighters, and police officers. To put this in perspective, the company’s tax contribution is enough to fund the entire operations of several major city agencies or could theoretically fund thousands of electric school buses and massive solar energy projects.

Leading the Transition to Clean Energy

The "Clean Energy Commitment" is Con Edison’s roadmap to achieving 100 percent clean energy by 2040, in alignment with state goals. This transition involves more than just changing the source of electricity; it requires a fundamental redesign of how energy is consumed.

Electrification of Buildings and Transport

New York City’s Local Law 97 places strict limits on carbon emissions from large buildings. To help property owners comply, Con Edison is incentivizing the switch from oil and gas heating to electric heat pumps. The company also offers pilot programs for multi-unit affordable housing to ensure that the costs of this transition do not fall disproportionately on low-income tenants.

In the transportation sector, Con Edison is expanding the electric vehicle (EV) charging infrastructure. By providing the necessary grid connections for medium- and heavy-duty fleets, such as delivery trucks and city buses, the company is enabling the reduction of tailpipe emissions in neighborhoods that have historically suffered from poor air quality.

Integrating Renewables and Battery Storage

As more intermittent energy sources like wind and solar come online, the grid must become more flexible. Con Edison is investing in large-scale battery storage projects that can soak up excess renewable energy during periods of low demand and discharge it when the city needs it most, such as during a summer heatwave. The company’s Distributed System Technology platform is being built to manage these complex interactions in real-time.

Customer Support and Energy Affordability

Con Edison recognizes that energy costs can be a significant burden for many New Yorkers. The company manages one of the nation's most robust Energy Affordability Programs (EAP). In 2024, it provided over $300 million in bill discounts to approximately 450,000 low-income customers.

The company is currently seeking to expand outreach for these programs, ensuring that every eligible household is enrolled. Additionally, energy efficiency programs help customers reduce their total consumption, which is the most effective way to lower bills over the long term. These initiatives include incentives for LED lighting, high-efficiency appliances, and better insulation for both residential and commercial buildings.

Financial Performance and Investor Relations

For investors, Consolidated Edison (NYSE: ED) is often viewed as a "dividend aristocrat." The company has a long history of increasing its common stock dividend, with 2025 marking 51 consecutive years of increases. As of late 2025, the quarterly dividend stood at 85 cents per share.

In its 2025 third-quarter report, Con Edison announced a net income for common stock of $688 million, or $1.91 per share, reflecting a solid financial position. This financial health is critical because it allows the company to access the capital markets at favorable rates, which is necessary to fund the multi-billion dollar infrastructure projects required by New York’s energy laws.

How to Handle an Energy Emergency

While Con Edison strives for unmatched reliability, emergencies such as gas leaks or power outages can occur. Residents are advised to contact Con Edison directly through their official channels in such events.

  • Gas Leaks: If you smell gas, act immediately. Leave the area and call 911 or the Con Edison emergency line once you are in a safe location. Never use a phone, turn on a light switch, or start a vehicle near a suspected leak.
  • Power Outages: Outages can be reported online or through the Con Edison mobile app. These digital tools provide real-time updates on restoration times and allow the company to deploy repair crews more efficiently.

Summary of the Role of Con Edison in New York

Con Edison remains the indispensable engine of New York City and Westchester County. Through its massive investments in grid reliability and its aggressive pursuit of clean energy goals, the company is preparing the region for a future where electricity powers almost every aspect of urban life. While the transition brings financial challenges in the form of rate increases, the long-term benefits include a more resilient energy system, cleaner air, and a modernized economy that continues to attract global investment.

With a history of over 200 years, Con Edison has proven its ability to adapt to the changing needs of New Yorkers. From the early days of gas lighting to the current era of offshore wind and electric vehicles, the company continues to evolve, ensuring that the "city that never sleeps" always has the power it needs to thrive.

FAQ

What areas does Con Edison serve?

Con Edison provides electric and gas services to all five boroughs of New York City (Manhattan, Brooklyn, Queens, the Bronx, and Staten Island) and most of Westchester County. It also provides steam service to parts of Manhattan.

Why is my Con Edison bill going up?

Bills are influenced by several factors, including the cost of energy supply, investments in infrastructure reliability, and state-mandated clean energy projects. Recent proposals for 2026 involve increases to fund a $21 billion investment plan for grid modernization and climate resilience.

How can I lower my Con Edison bill?

Customers can lower their bills by participating in energy efficiency programs, such as installing heat pumps or high-efficiency appliances. Low-income customers may also be eligible for the Energy Affordability Program (EAP), which provides monthly bill discounts.

What should I do if I smell gas?

If you smell natural gas, leave the building immediately and take others with you. Once away from the area, call 911 or the Con Edison emergency number. Do not do anything that could create a spark, such as using a phone or light switch, until you are safe.

Is Con Edison a public or private company?

Con Edison is an investor-owned company that is publicly traded on the New York Stock Exchange under the ticker symbol ED. However, its rates and many of its operations are strictly regulated by the New York State Public Service Commission.

How is Con Edison supporting clean energy?

The company is investing in "Clean Energy Hubs" to integrate renewable sources like offshore wind, expanding EV charging infrastructure, and providing incentives for building electrification. It aims to deliver 100% clean electricity by 2040.