Con Edison Files Joint Proposal for 3-Year Steam Rate Plan with 9.5% Authorized ROE
ED is trading near its 52-week low of $94.96 (13% above the low).
Summary
Con Edison's CECONY filed a joint proposal for a three-year steam rate plan with a 9.5% authorized ROE and base rate increases totaling $94M over the period, subject to NYSPSC approval.
Key Events · Product Development and Regulatory · ED
-
Steam Rate Plan Joint Proposal Filed
CECONY, NYSDPS, and other parties entered a joint proposal for a three-year steam rate plan effective November 1, 2026 through October 31, 2029, subject to NYSPSC approval.
-
Base Rate Increases Total $94M
Base rate increases of $13M (Yr1), $42M (Yr2), and $39M (Yr3) are shaped to a consistent 3.5% total bill impact each year, with corresponding shaped base rate increases of $26.6M, $27.5M, and $28.5M.
-
Authorized ROE Set at 9.5%
The plan authorizes a 9.5% return on common equity with a 48% common equity ratio and weighted average cost of capital ranging from 7.07% to 7.19% across the three years.
-
Capital Expenditures of $396M
Planned capital expenditures total $143M (Yr1), $127M (Yr2), and $126M (Yr3), supporting continued investment in the steam system.
Analysis · ED · Energy & Transportation
A joint proposal for a three-year steam rate plan covering November 2026 through October 2029 has been entered into by Con Edison's CECONY subsidiary, the NYSDPS, and other parties. The plan authorizes a 9.5% return on common equity, a 48% common equity ratio, and base rate increases of $13M, $42M, and $39M across the three years — shaped to a consistent 3.5% total bill impact annually. This is a material regulatory milestone for the steam business: it locks in revenue recovery and capital expenditure recovery for three years, subject to NYSPSC approval. The earnings sharing mechanism (excess above 10% ROE applied to reduce regulatory assets) and negative revenue adjustments for missed performance targets add downside protection for customers but cap upside for shareholders. For a utility with a $39.5B market cap, the steam segment is a smaller piece of the overall business, but the plan's approval would remove regulatory uncertainty and support the company's capital investment program.
How filings like this one have moved
In the 30 days to Sep 9, 2026, 30% of the 1972 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.02%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, ED was trading at $107.18 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $39.5B. The 52-week trading range was $94.96 to $116.23. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.