The Public Service Commission unanimously approved a rate hike for Con Edison customers on Thursday despite strong public opposition and mounting concerns over New York’s affordability crisis.

Average bills for electricity customers will go up by 3.5% this year, 3.2% in 2027 and 3.1% in 2028. For New York City residents, this adds up to about a $6.88 monthly increase this year, according to the plan.

Gas bills will go up by 4.4% this year, 5.7% in 2027 and 5.6% in 2028. This year’s monthly bills will see an average increase of $10.67.

The rate increases will take effect retroactively from Jan. 1, 2026.

After more than a year of negotiations and pushback, the rate increases are still too high for New Yorkers, according to advocates and elected officials. More than 70 city and state officials signed a letter urging the Public Service Commission to reject the proposal earlier this month.

According to AARP, about 1 million Con Ed ratepayers received notices last year that their power would be cut off due to lack of payment, a sign that people are already struggling with the current rates.

“That is way too high,” said Bill Ferris, New York legislative representative for AARP. “We just think it's not the time to [raise rates]. They should go back and figure out how to make this rate lower because clearly the people in the Con Ed service territory can't afford their bills.”

Con Ed said the revised increases are in keeping with the rate of inflation.

The utility company’s original proposal, filed more than a year ago, was much steeper with a one-time increase. Gas customers' bills would have risen about 13%, or an average of $46.42 per month in 2026 while electricity consumers would have had to pay roughly 19% more or $26.60 per month on average.

The original proposal received a record number of more than 20,000 public comments, mostly in opposition. Last February, Gov. Kathy Hochul directed the Department of Public Service to reject Con Ed’s initial rate request.

“The Governor has been clear that as a state we need to do more to keep rates down, which is why in her State of the State address last week, she unveiled a plan to hold energy companies accountable and ensure a reliable grid,” wrote Ken Lovett, Hochul's spokesperson on energy and environmental issues.

The new proposal was approved by environmental groups, New York City's government, and 40 Westchester municipalities, according to the Public Service Commission. And the approved increase represents months of negotiations.

“The majority of parties in the rate case worked diligently to secure an 87% reduction to Con Ed’s requested rates in 2026 have either signed on to the joint proposal or do not oppose it,” wrote James Denn, director of public affairs at the Public Service Commission, via email. “This is because they reviewed evidence that supports a settlement that will invest in reliability, safety and the clean energy transition while keeping costs under control.”

The Public Services Commission estimated the new rate hike would increase Con Ed’s annual electricity revenues by $1.6 billion and an additional $440 million for natural gas. For the first nine months of 2025, the company reported nearly $13 billion in total operating revenue, almost 12% more for the same period in 2024. It is expected to release its full 2025 results next month, according to its financial statements.

Con Ed bills have risen by around $50 since 2022, according to an analysis by Alliance for a Green Economy. Ferris said Con Ed cut power to nearly 200,000 households last year. Customers owe around $1 billion in unpaid energy bills.

“They should go back and figure out how to make this rate lower. Because clearly the people in the Con Ed service territory can't afford their bills,” Ferris said.

This story has been updated to include additional reporting.