New Yorkers Will Likely Owe Con Edison Back Pay In 2026—Here’s Why

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If you were hoping for a reprieve from rising utility costs in the New Year, we have some good news and some bad news. The good news? Your Con Ed bill won’t spike on January 1st. The bad news? You’ll likely have to pay the difference later.

While the state and Con Ed reached a deal in November, the Public Service Commission still hasn’t officially signed off on it. This means the 2026 rate hikes won’t be cleared in time for New Year’s Day–but don’t get too comfortable, because they’re still coming.

Here’s everything you need to know about the delay and how it will hit your wallet come springtime.

The “Retroactive” Catch

Because the Public Service Commission (PSC) hasn’t formally signed off on the new rates worked out last November, your bills for January and February will stay at 2025 levels.

However, once the hikes are officially approved–likely a few months into the year–they will be applied retroactively to January 1. This means Con Edison will be looking for the money they missed out on, and customers will be on the hook for the back pay of those first few months.

How Much Will Rates Actually Go Up?

While the original proposal from Con Ed was much higher (they initially asked for a 19% jump in electric!), the negotiated rates are significantly lower. If approved, here is what the average New Yorker can expect:

• Electricity: an increase of about $4 more per month (a 3.5% rise for 2026)
• Gas: an increase of about $10.67 more per month (a 4.4% rise for 2026)

These rates are part of a three-year plan that will see smaller, incremental increases through 2028. If the proposal is ultimately approved by the commission, electricity delivery charges and gas rates would rise as follows:

• Electricity: 3.5% in 2026 | 3.2% in 2027 | 3.1% in 2028
• Gas: 4.4% in 2026 | 5.7% in 2027 | 5.6% in 2028

The Pushback in Albany

Not everyone is happy about the “pay us later” model. State Senator Shelley Mayer is currently sponsoring a bill aimed at limiting how much utility companies can collect retroactively. The goal is to incentivize companies to move the process along faster rather than letting the debt pile up for the consumer.

Even Mayor-elect Zohran Mamdani and President Donald Trump found rare common ground on the issue during their November meeting, both agreeing that Con Edison’s rates are “out of control.”

What If You Need Help Paying?

If these increases–and the looming back pay–are stressing your budget, there are resources available:

• HEAP (Home Energy Assistance Program): applications are currently open. This program can provide up to $996 to help with heating and cooling costs
• Emergency HEAP: starting January 2, emergency payments will be available for those facing utility shutoffs or broken equipment

For now, keep an eye on your mail. The PSC has allowed Con Ed to continue billing at current rates through at least the end of February, but the moment when you ask for more money is definitely on the horizon.