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NY FAIR Act would cap Con Edison’s authorized profit rate to cut electric bills, as the company disconnected 88,000 households for nonpayment last year

A new state bill aims to cap Con Edison’s profit rate on infrastructure investments to lower electricity bills across New York, as the utility disconnected 88,000 households for nonpayment last year.

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A new state bill that would limit the profit rate utilities like Con Edison are authorized to earn on infrastructure investments could cut electricity bills across New York, according to an op-ed published Tuesday in the New York Daily News by Robbins, director of the Utility Customers Association.

The Fair Authorized Investment Returns (FAIR) Act, sponsored by Assemblymember Sarahana Shrestha and Sen. Shelley Mayer, would reduce the rate of return that the New York State Public Service Commission (PSC) allows for-profit utilities to collect from customers on capital investments. Under the current model, utilities earn a profit for every dollar they spend building out infrastructure, and that profit flows back to investors. The FAIR Act would lower that rate but keep it high enough to attract investment, Robbins argues.

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