Con Edison Gas Delivery Surcharge Increase

On September 1, 2026, Con Edison sharply raised one component of the delivery rate on gas accounts billed under its residential firm heating rate class, known as SC 3. Here is what it is and what it means for your building.

What is it?

Con Edison is allowed to collect a set amount of money each year for delivering gas. If it collects less than that amount, it makes up the difference by adding a charge to customer bills. This charge is called the Revenue Decoupling Mechanism, or RDM.

From January through July 2026, Con Edison collected about $175 million less than planned, mostly from SC 3 accounts. It is now recovering that money through a higher RDM charge.

What changed?

For SC 3 accounts serving buildings with more than four apartments, the RDM charge rose from 8 cents to about 31 cents per therm. For most accounts, this equates to roughly a 10% increase in your total gas bill.

What does this mean for you?

An SC 3 account that uses 100,000 therms a year could pay about $23,000 more per year. Most of that cost will appear on winter bills, when usage is highest. The charge applies regardless of whether Con Edison or a third party is your supplier.

The new rate is expected to stay in place through August 2027. However, it could change again prior to that once Con Edison finalizes its numbers for 2026.

If you have already prepared a budget for the coming year, we recommend revising it to account for this 23 cent increase.

If you have any questions, please feel free to contact your Aurora representative.