Con Edison's $1.6B Electric Delivery Proposal: What NYC Zone J Cultivators Face

What Con Edison proposed

Con Edison filed for approximately $1.6 billion in additional electric delivery revenue, described by the Department of Public Service as a 17.9% base delivery increase [ny-dps-coned-hearings]. The filing covers both electric and gas delivery infrastructure, grid modernization, and storm hardening investments [ny-dps-coned-case].

For a cannabis operator in New York City, this matters because delivery is the part of the bill you cannot shop. Whether you buy supply from Con Edison default service or a third-party ESCO, Con Edison still bills distribution, customer charges, and demand charges on its tariff.

The DPS scheduled more than a dozen public statement hearings across Con Edison's service territory in 2026 [ny-dps-coned-hearings]. Cultivators and dispensary operators who want to comment on bill impacts can participate through those hearings or written comments on the docket.

Delivery vs supply: what you control

Bill section	Who sets it	Can you shop it?
Delivery (distribution)	Con Edison tariff, PSC-approved	No
Demand charges	Con Edison tariff	No
Supply (energy)	ESCO or Con Edison default	Yes, in most C&I classes
NYISO capacity	Supply side / market	Indirectly via contract

A 17.9% delivery revenue increase does not translate to a flat 17.9% total bill increase. The percentage applies to the delivery revenue requirement, which is only part of your invoice. Demand-heavy cultivation facilities feel a larger share because demand charges live on the delivery side.

EIA reported New York's average commercial price at 19.82 cents per kWh in mid-2026, reflecting both supply and delivery in the statewide average [eia-epm-5-6-a]. Zone J accounts often pay more than the state average because of local delivery costs and NYISO capacity premiums.

Why Zone J cultivators feel delivery increases acutely

Zone J (New York City) carries the highest NYISO capacity prices in the state. That capacity cost hits the supply line. Delivery increases hit a separate stack of charges tied to Con Edison's infrastructure spending [ny-dps-coned-case].

An indoor cultivation facility with 400 kW peak demand might pay:

Charge type	Typical share of bill	Affected by delivery case?
Demand charge	30 to 50%	Yes
Delivery energy (kWh)	15 to 25%	Yes
Supply energy + capacity	25 to 40%	No (shoppable)
Customer charge, surcharges	5 to 10%	Partially

If delivery revenue rises 17.9%, demand and delivery energy lines move proportionally. A facility paying $8,000 per month in delivery might see $1,400 or more in increased delivery costs depending on how the PSC allocates the increase across rate classes.

Worked example: Queens cultivation facility

Assume a 20,000 sq ft indoor grow in Queens on Con Edison SC-9 at 350 kW peak and 420,000 kWh monthly use. Illustration only.

Line item	Assumption	Monthly cost
Demand charge	350 kW x ~$28/kW	$9,800
Delivery energy	420,000 kWh x ~$0.05/kWh	$21,000
Supply (ESCO or default)	420,000 kWh x ~$0.09/kWh	$37,800
Total		~$68,600

If delivery revenue components rise 17.9%, demand and delivery energy lines increase roughly $5,500 per month in this illustration. Supply is unchanged unless you renegotiate your ESCO contract.

What dispensaries face differently

Retail cannabis stores in NYC typically draw 50 to 150 kW peak depending on HVAC, security, and refrigeration. They land on smaller commercial schedules with lower demand rates per kW but less total demand exposure [ny-dps-coned-case].

A 3,000 sq ft dispensary at 80 kW peak feels delivery increases mainly on the kWh delivery line and fixed customer charge, not a large demand ratchet. Cultivation facilities with multi-room lighting schedules carry higher demand and see larger absolute dollar impacts from delivery rate cases.

Supply shopping still matters

Delivery increases you cannot avoid make supply savings more valuable, not less. If Con Edison delivery rises $5,000 per month, shaving 2 cents per kWh on supply for 420,000 kWh saves $8,400 per month. Fixed vs index supply contracts deserve review even during a delivery case.

See how to switch electricity suppliers in New York for ESCO enrollment. Con Edison territory rates are summarized at Con Edison commercial energy.

Tracking the proceeding

Monitor the Con Edison electric rate case docket on the DPS website for interim rate orders, revenue allocation across customer classes, and the final decision [ny-dps-coned-case]. Rate cases often produce settlement agreements that reduce the initial ask. The filed 17.9% figure is a starting point, not a guaranteed outcome.

New York's PowerScore energy reporting rules apply separately from rate case outcomes. Cultivators filing annual energy reports should track both regulatory tracks. See New York cultivation facility energy for load context.

Reducing exposure while the case proceeds

You cannot vote down a delivery increase by switching suppliers, but you can:

1. Shop supply to offset delivery growth on the supply lines you control.
2. Manage peak demand to reduce demand charge exposure on the delivery tariff.
3. Evaluate efficiency upgrades that lower both kWh and kW before new rates take effect.
4. Review rate class with Con Edison account management if your load profile changed since original service setup.

Demand response programs may offer revenue for curtailing during grid events. Enrollment rules and compensation vary by program year. Confirm current offerings with Con Edison or your curtailment service provider.

Zone J capacity costs stack on top of delivery

Con Edison delivery increases sit on top of NYISO capacity obligations that already run high in New York City. Zone J summer capacity has cleared at record levels for 2026, which flows through ESCO and utility supply charges separately from this delivery case [ny-dps-coned-case]. A cultivator modeling only the 17.9 percent delivery proposal understates total bill risk if capacity prices stay elevated.

Cross-check your supply contract for NYISO capability period resets on May 1 and November 1. Delivery and capacity move on different calendars.

SC-9 vs smaller commercial schedules

Large indoor cultivation facilities in NYC often land on SC-9 or similar demand-metered large commercial schedules [ny-dps-coned-case]. Dispensaries and small processing labs may sit on SC-2 or SC-8 with lower peak demand but higher energy rates per kWh. The Con Edison filing allocates revenue across classes. A percentage increase that averages 17.9 percent at the utility level may hit SC-9 demand charges harder than SC-2 energy lines [ny-dps-coned-hearings].

Pull your rate schedule code from the bill header. If you expanded canopy since original service setup, Con Edison account management may reclassify the meter. Reclassification changes which tariff lines absorb the proposed delivery increase [ny-dps-coned-case].

Schedule type	Typical peak	Delivery exposure
SC-2 / SC-8 retail	50 to 150 kW	Mostly kWh delivery
SC-9 cultivation	250 to 600 kW	Demand + kWh delivery
Primary voltage	500 kW+	Lower $/kW, higher fixed costs

Filing comments with interval data

The DPS scheduled public statement hearings across Con Edison territory in 2026 [ny-dps-coned-hearings]. Commercial customers may submit written comments on the docket even if they cannot attend a hearing. Cultivation facilities should attach interval load charts showing how lighting, dehumidification, and HVAC stack between 10 AM and 6 PM [ny-dps-coned-case].

Generic opposition carries less weight than a comment letter stating your peak kW, monthly delivery dollars, and employment count. Regulators use customer-class load shapes when deciding how to spread approved revenue across schedules [ny-dps-coned-hearings]. A 400 kW facility paying $9,800 per month in demand alone has a different profile than a 60 kW dispensary paying $1,400 in demand.

NYISO ICAP tags on the supply side

Zone J capacity costs flow through your ESCO or Con Edison default supply charge, not through the delivery rate case [ny-dps-coned-case]. The May and November NYISO capability periods reset ICAP obligations independently of Con Edison delivery proceedings. A cultivator modeling total bill risk for 2027 should stack the proposed 17.9 percent delivery increase on top of current Zone J capacity tags [eia-epm-5-6-a].

Shopping supply remains the lever you control during a delivery case. If delivery rises $5,000 per month, a two cent per kWh supply savings on 420,000 kWh offsets $8,400 monthly [ny-dps-coned-hearings]. See how to switch electricity suppliers in New York for ESCO enrollment timing.

OCM energy use plan and rate case timing

New York cannabis cultivators file energy use plans with the Office of Cannabis Management on a separate calendar from Con Edison rate proceedings [ny-dps-coned-case]. A delivery increase does not change OCM compliance thresholds, but it raises the cost of running inefficient equipment. Facilities planning LED retrofits or HVAC upgrades should coordinate efficiency spend with the rate case timeline so savings begin before new delivery rates take effect [ny-dps-coned-hearings].

PowerScore annual reporting tracks kWh per pound and water use [ny-dps-coned-case]. Lower peak demand from efficiency also improves delivery charge outcomes on SC-9 schedules where demand is the dominant line item [eia-epm-5-6-a].