Overtaxing utilities passes costs to us

Manhattan: Debate over New York City’s exceptionally high electric bills largely overlooks a major contributor to Con Edison’s bills: New York’s unusual property-tax treatment of utility infrastructure. Under a law dating back to 1899, property taxes for utility companies cover not only the physical infrastructure, but the “special franchise” tax component for the right-of-way allowing utilities to operate under public streets.

Because Con Edison operates an enormous and capital-intensive underground electric, gas and steam network, this framework produces exceptionally large property tax bills. No other jurisdiction in the country assesses utility property taxes this way. Additionally, NYC classifies most utility property under the Class 3 tax category, placing it in the highest possible property tax bracket with an effective rate of 5%, much higher than rates for residential and most business properties. Con Edison passes these property taxes directly to customers as “delivery charges.”

In 2026, its approved electric property tax expense is about $2.39 billion, including about $2.22 billion attributable to NYC. City property taxes alone account for about 21% of an average customer’s electric bill. NYC recently also dramatically increased the assessed value of Con Ed property, resulting in more than a 45% increase in its NYC property tax bill between 2019 and 2024. The state and city governments need to urgently reconsider the current system of grotesque overtaxation of utility properties that hurts all New Yorkers.

Snohomish, Wash.: Glad to see Gov. Hochul taking part of a positive piece of the very negative legislation, the........

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