In January, Con Edison filed applications with the New York Public Service Commission (PSC) to increase electricity and natural gas rates approximately 30% over the next three years. Con Ed’s rates are already among the highest in the country, and New York customers are feeling the pain — requests for help paying utility bills is up nearly 14 times over the past five years.

In principle, Con Ed’s rates are supposed to reflect their actual cost of service, including a reasonable profit. What most customers don’t realize is that Con Ed’s rates include two “costs” that have nothing to do with providing service.

New York City’s utility-specific property taxes and Con Ed’s unreasonable profits together will add approximately 25% to the average customer bill under Con Ed’s proposed rates. New Yorkers are getting ripped off — and there’s something state and city officials can do about it.

Many states and cities impose utility-specific property taxes or similar fees, but New York City’s are the highest in the country. As Con Ed executives have testified, while utility properties are 3% of total city property value, they account for 7% of property taxes. In other words, the New York City Council requires Con Ed — or, more accurately, its customers — to pay more than double the property tax rate paid by other NYC property owners.