Con Edison Gas Cost Factor Adjustment
The start of the year brings changes to Con Edison’s Gas Cost Factor (GCF) and other rate components, as the utility updates its pricing structure per its annual rate plan approved by the New York Public Service Commission (PSC). These adjustments directly affect the amount customers pay for the gas they consume.
The GCF represents the cost of the natural gas commodity itself, which Con Edison purchases in the market to supply its customers. While delivery and customer charges remain fixed per PSC guidelines, the GCF is a pass-through cost that fluctuates monthly based on Con Edison’s purchase costs, weather, and supply-demand dynamics.
For January 2025, the utility announced a GCF increase, driven primarily by colder-than-expected December temperatures and higher-than-average natural gas demand across the Northeast. This increase is reflected in January billing cycles.
Because the GCF is recalculated monthly, additional changes may occur throughout the winter. These periodic adjustments ensure that customers pay market-reflective prices rather than rates locked in under outdated assumptions. However, they can also create short-term volatility in heating costs.
Property owners and managers with large natural gas loads may consider working with an Energy Service Company (ESCO) to stabilize pricing through a fixed-rate or indexed third-party supply contract.
Aurora Energy Advisors can assist you in evaluating your gas rate structure, identifying opportunities for stabilization, and comparing your property’s consumption and costs against market benchmarks.
Market Analysis
Natural Gas
NYMEX natural gas opened the year near $2.40 per MMBtu following a relatively mild December. Strong domestic production and robust storage levels have kept prices from escalating despite periodic cold snaps.
Electricity
Electricity pricing in NYISO Zone J remained steady through December, averaging around $0.04 per kWh, though isolated peaks above $0.06 occurred during colder periods. Market volatility remains muted overall.
Crude Oil
Crude oil began 2025 trading in the low-to-mid $70s per barrel, supported by OPEC+ production management and cautious optimism around global demand growth.
💡 Mitchell’s Tip: Evaluate your January gas bills closely — rate adjustments may create short-term cost fluctuations that can be mitigated through proactive supply planning.
