Con Ed took over some work on the MTA’s facilities in an unusual arrangement. | AP Photo/Frank Franklin II Con Ed electric customers will pay for MTA work

ALBANY — Con Edison’s electric ratepayers are set to pay millions for work the company did on New York City's subway system under a proposal endorsed by the utility and regulators.

The rate hike plan filed Friday and supported by Department of Public Service staff includes “MTA work” as one major capital cost for which ratepayers are on the hook. Every New York City electric customer will help pay for about $240 million in upgrades to the Metropolitan Transportation Authority’s system pushed for by Gov. Andrew Cuomo — if the Public Service Commission approves the rate plan.


Con Ed took over some work on the MTA’s facilities in an unusual arrangement after Cuomo blamed the utility for thousands of delays, a figure that was likely inflated, amid public outrage over subway problems in the summer of 2017.

“Con Ed was a convenient political scapegoat for Governor Cuomo to blame for the meltdown in subway service,” said Reinvent Albany’s John Kaehny in a statement to POLITICO. “The governor did a lot of chest thumping about Con Ed having to pay huge amounts for emergency electrical upgrades, but it was obvious Con Ed would eventually pass those costs onto its customers. That day has come, and Con Ed customers will soon be paying a backdoor MTA tax.”

The Public Service Commission, the utility regulator Cuomo effectively controls, first ordered Con Ed to perform work on its own equipment serving the MTA in August, 2017. It made clear the utility wouldn’t be expected to do work on the MTA-owned portion of the system.

But then, in an October order, the PSC directed the utility to take over contracts and costs dealing with the MTA electric system and pay for upgrades and repairs. The commission punted on the cost issue, but it was clear Con Ed would seek to recover its costs from ratepayers.

“To protect the health, safety and welfare of the public in New York City and the surrounding suburbs, Con Edison was directed to address service outages, derailments and disruptions on the MTA subway system,” said Public Service Commission spokesperson Jim Denn.

“The Department’s investigation found that power quality weaknesses of the Con Edison and MTA systems are inextricably intertwined and that any solution would need to focus jointly on both systems. That conclusion was confirmed by an independent engineering expert that worked cooperatively with the MTA, Con Edison and DPS on the power quality issues involving both systems, and costs related to the repair are being considered.”

The PSC has refused to release the report in response to a public records request, citing “trade secrets.” The rate proposal will be subject to public comment and may be modified by the PSC.

The utility did take responsibility for two major subway delays due to power outages in April and May 2017.