Photo via Flickr/Con Edison
Con Edison doesn’t just keep New York City plugged in; a new study indicates it generates a significant positive economic impact in the form of jobs, contracts, and tax revenues for the city.
The study conducted by HR&A Advisors, along with Con Edison, sought to quantify the utility giant’s spending and other economic contributions in New York City and Westchester County – including a big property tax bill.
Con Edison provides power to 9 million people and 350,000 businesses across the city and Westchester. Along the way, the study found, it helped provide a $23 billion jolt of economic power in 2024, including $15.3 billion in direct impact, according to the study.
“Con Edison doesn’t just power the New York skyline,” said Jen Hensley, the company’s Senior Vice President of Corporate Affairs. “We help the city thrive.”
The report was released as Con Edison seeks approval from the state Public Service Commission for a rate hike that could see the average electric bill increase by 11.4% and a gas bill rise by 13.3%.
The way Con Edison sees it, the contributions it makes to the local economy help offset any increases customers might feel.
The study found that Con Edison in 2024 spent $2 billion on contracts with New York State and New York City businesses, roughly evenly distributed between elsewhere in the state and the city.
Approximately 25% of that amount ($494 million) was allocated to small and diverse businesses, representing a nearly 30% increase since 2021.
Con Edison supports 37,700 jobs statewide, including 14,000 directly employed by the utility; more than 80% of employees live in New York, according to the study. Nearly 40% of Con Ed employees, the study found, come from CUNY or SUNY schools, and more than 75% are graduates of New York-based schools.
The HR&A Advisors study concluded that Con Edison also keeps the economic wheel turning through agreements in public contracts, infrastructure investment and taxes paid.
“Con Edison contributes to New York’s economy in ways that positively impact the millions of New Yorkers they serve,” said Kate Wittels, partner HR&A Advisors, which conducted the study. “Beyond simply providing electricity, Con Edison creates jobs, generates tax revenue, and much more.”
Con Edison, in 2024, contributed $4.7 billion in taxes and fees to New York State, including New York City and Westchester, a 7% increase from 2023. This total includes $3.3 billion in New York City alone, according to the study. Customers pay 25 to 30% of their bill as property taxes for utility infrastructure taxed at a higher rate than other properties.
Con Edison of New York in 2024 paid $464 million more in property taxes to New York City than in 2021, enough to cover energy bill discounts for more than 224,000 households through the company’s Energy Affordability Program.
The utility taxes pay not just for power plants but also for electrical infrastructure, such as pipes and wires.
Con Edison customers, the study found, are “the largest property taxpayer in New York City.”
Property taxes on Con Edison’s infrastructure have risen more than 22% since 2021 and are “becoming a significant driver of increased energy costs for customers,” according to the study.
Con Ed in 2024 provided more than $79 million to help low- and moderate-income customers reduce their energy use and improve energy efficiency, twice the amount in the prior year.
And the company provided $311 million to reduce the bills of 450,000 low-income customers, up 17% from 2023, in its Energy Affordability Program
Con Ed in 2024 also invested $710 million in clean energy and electric infrastructure improvements, benefiting disadvantaged communities, a 8% increase since 2023, according to the study.
“We’ve done a lot of work to build resiliency and redundancy into the system,” said Communications Director Jamie McShane. “We’re constantly investing, using technology to monitor the system and replace components that need to be replaced.”