Con Edison Penalized $4.3 Million for Mistakes Regarding Renewable Energy Credits

ALBANY - The New York State Public Service Commission (Commission) today adopted the terms and conditions of a settlement agreement between Consolidated Edison Company of New

York, Inc. (Con Edison) and the Department of Public Service, collectively requiring Con Edison to return $4.3 million to impacted customers and New York State for the utility's failure to properly account for certain charges related to renewable energy certificates, or RECs.

"The Public Service Commission is laser-focused on protecting consumers across New York State from excess charges," said Public Service Commission Chair Rory M. Christian. "It's particularly important during the current economic challenges faced by New Yorkers to ensure that consumers are not being overcharged for electricity and that rates remain affordable."

Con Edison will return more than $4.1 million of the settlement to impacted customers. Further, the settlement includes a $200,000 payment by company shareholders to the New York State government.

In 2024, the Department became aware of issues with Con Edison's registration of certain Value of Distributed Energy Resources (VDER) REC credits. VDER is a mechanism to compensate energy producers for energy created by distributed energy resources, like solar.

Following an investigation, it was determined that the company did not timely register certain VDER RECs for calendar years 2017-2023, which resulted in Con Edison making unnecessary Alternative Compliance Payments (ACPs) to the New York State Energy Research and Development Authority (NYSERDA) each year following the appropriate registration period for the relevant VDER RECs. The investigation also determined that Con Edison incorrectly registered certain projects for VDER RECs for calendar years 2018-2023, which reduced the value of Con Edison's ACPs to NYSERDA each year following such project registration.

The Commission's adoption of the settlement agreement concludes the investigation and related enforcement proceeding. As a result of this agreement, approximately 3.3 million Con Edison customers will receive a credit starting no later than 2026.

Today's decision may be obtained by going to the Commission Documents section of the Commission's Web site at www.dps.ny.gov and entering Case Number 25-E-0638 in the input box labeled "Search for Case/Matter Number". Many libraries offer free Internet access. Commission documents may also be obtained from the Commission's Files Office, 14th floor, Three Empire State Plaza, Albany, NY 12223 (518-474-2500). If you have difficulty understanding English, please call us at 1-800-342-3377 for free language assistance services regarding this press release.

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