AGREE, EDF, and Rewiring America Secure Progress Towards Heat Pump-Friendly Electric Rates in Con Edison Rate Case

(NEW YORK, NY - November 6, 2025) Alliance for a Green Economy (AGREE), Environmental Defense Fund (EDF), and Rewiring America (RA) have come to an agreement with the utility Consolidated Edison (ConEd) and other rate case parties to help families save money when they switch to clean, efficient heat pumps. The agreement has the potential to save ConEd customers who adopt heat pumps as much as $131 million over the next 3 years.

"This agreement will make major progress for New Yorkers seeking modern energy efficient heating" said Jessica Azulay, Executive Director of Alliance for a Green Economy. "It reforms energy pricing that penalized customers who were taking climate action. It will now be easier for families to get off fossil fuels by switching to heat pumps and to save money while doing so."

ConEd offers an energy pricing plan that can save most heat pump users money, but customers must opt in and few know it exists. Of more than 43,000 ConEd customers with heat pumps, fewer than one percent are enrolled in the rate designed to lower their bills. According to testimony filed by EDF and AGREE, this lack of access is already costing customers at least $19 million per year.

If unaddressed, that figure could climb to $131 million between 2026 and 2028. The agreement addresses this inequity by creating a process for ConEd to adopt simpler, more affordable rates and committing ConEd to provide modernized customer education tools - so every household can understand, access, and benefit from clean, efficient heating and fair, customized energy pricing.

"This agreement marks a turning point to ensure Con Edison customers can learn about and benefit from affordable rates for clean heat solutions," said Erin Murphy, Environmental Defense Fund's Director & Sr. Attorney, Clean Air & Energy Markets. "New Yorkers will have expanded access to rates built for the grid of the future - ones that reward efficient electrification while ensuring clear and consistent electric bills."

While more progress is needed to ensure an equitable, affordable, and clean energy future, there are key wins for customers and the environment in this agreement:

• Fairer, Simpler Rates: For years, default electric rates - designed for fossil-fueled homes - have penalized customers who adopt clean heat pumps. Under the agreement, ConEd must study and appropriately reform its time-of-use and demand-based rates to ensure electrified homes no longer overpay.
• Personalized Tools for Bill Savings: The proposal requires ConEd to give customers powerful new tools: personalized rate calculators that use real hourly data to find the lowest-cost rate for each home; online platforms that show potential savings from technologies like heat pumps and EVs before purchase; and annual reports that proactively alert customers to better rate options and projected savings.
• Expanded Access & Price Guarantees: The agreement extends a one-year price guarantee for customers on the Time-of-Use Rate (SC 1 Rate III) and removes outdated caps on participation. Customers can now explore new rate options without risk of higher bills, expanding access to savings for all.

"Con Edison's leadership puts New York alongside utilities nationwide that are making heat pump-friendly rates the norm," said Alex Lopez, Senior Manager, Regulatory Policy at Rewiring America. "By combining rate reform with proactive, personalized education, this plan shows how utilities can help customers unlock the full value of electrification."

ConEd initially sought to raise residential electric bills next year by 11.4%. In addition to reforming rates for heat pump customers, the agreement cuts the electric bill increase for the average customer to 2.8% next year and limits future rate hikes to that same percentage for 2027 and 2028. The agreement also requires the company to improve language access and enhance its bill assistance programs, including improving outreach to eligible customers.

The Joint Proposal is supported by AGREE, EDF, ConEd, Department of Public Service Staff, the City of New York, the New York Power Authority, Amtrak, and other parties. It now moves to the New York Public Service Commission for review and approval. EDF, AGREE, and Rewiring America will continue to monitor ConEd's implementation to ensure these reforms deliver real savings and equitable benefits for customers across New York City and Westchester County.