Owners & management · 10/23/2026
Reader letter blames NYC property taxes for high Con Ed electric bills
In a Daily News letter, a Manhattan reader argues that New York's property tax treatment of utility infrastructure drives up Con Edison bills. The writer says an 1899 law taxes utilities' right-of-way under streets, and that Con Ed passes these taxes to customers as delivery charges. The letter cites about $2.22 billion in 2026 electric property tax expense tied to NYC.
Reported by Daily NewsRead the original ↗
What happened
On October 23, 2026, the Daily News ran a page of reader letters. One letter, from a Manhattan reader, argues that property taxes on utility infrastructure are a major and overlooked driver of New York City's high Con Edison electric bills. The other letters on the page covered unrelated topics, including a school tax credit and Halloween curfews in nearby towns.
The writer says that under a state law dating back to 1899, utility property taxes cover both the physical infrastructure and a "special franchise" component for the right to run lines under public streets. The writer also says the city puts most utility property in tax Class 3, with an effective rate of 5%, which is higher than rates for residential and most business properties. According to the letter, Con Edison passes these taxes to customers as "delivery charges."
The letter gives these figures: Con Edison's approved 2026 electric property tax expense is about $2.39 billion, with about $2.22 billion attributable to New York City. City property taxes alone account for about 21% of an average customer's electric bill. The city's higher assessments of Con Ed property led to a more than 45% increase in its city property tax bill between 2019 and 2024. The writer calls on the state and city to reconsider the system. These are the letter writer's claims. The Daily News published them as reader opinion, not as reporting.
Key facts
- Outlet
- Daily News reader letters page
- Date
- October 23, 2026
- Writer
- Unnamed reader from Manhattan
- Law cited
- Utility property tax law dating back to 1899, including a "special franchise" component
- Tax class
- Most utility property is in Class 3, with an effective rate of 5%, per the letter
- 2026 tax expense
- About $2.39 billion in approved electric property tax expense, about $2.22 billion attributable to NYC, per the letter
- Share of bill
- City property taxes are about 21% of an average customer's electric bill, per the letter
- Increase
- More than 45% rise in Con Ed's NYC property tax bill from 2019 to 2024, per the letter
What it means
Landlords
If the letter's figures are right, a meaningful share of the electric bills for common areas and owner-paid units goes to city property taxes passed through by Con Edison. Nothing in the letter points to a change yet, so budgets should assume current delivery charges continue.
Tenants and voucher holders
Tenants who pay their own electric bills carry these delivery charges directly. The letter is an opinion piece and does not report any relief or policy change.
The highlights
- Letter says city property taxes are about 21% of an average Con Ed electric bill.
- Most utility property is taxed as Class 3, at a 5% effective rate, the writer says.
- Writer cites a more than 45% rise in Con Ed's NYC property tax bill from 2019 to 2024.
Why it matters
Property taxes on Con Ed's network flow into delivery charges paid by building owners and tenants alike.
What to do: Check the delivery charges on your building's Con Ed bills.
Not known yet
- Whether the city or state plans to change how utility property is taxed
- Whether the letter's figures have been independently confirmed
- How much bills would change if the tax treatment changed
- Whether any elected official has taken up the writer's proposal
Background
New York City sorts property into four tax classes. Class 1 is mostly one- to three-family homes, Class 2 is other residential property, Class 3 is utility property, and Class 4 is commercial property. Each class has its own tax rate. The city Department of Finance sets assessed values. Utility rates, including the delivery charges on Con Edison bills, are reviewed and approved by the state Public Service Commission.
Summary written by Bulwark from Daily News’s reporting. The original story is at nydailynews.com. This is general information, not legal advice.
Related
Follow Bulwark on WhatsApp
Deadline countdowns, rule changes, voucher rents and breaking NYC housing news in your WhatsApp Updates. Free.
Send the message that opens, then save our number. WhatsApp only shows updates from saved contacts.
Brooklyn, NY
Want a manager who tracks this for you?
Rent, repairs, filings and deadlines handled, with one clear statement a month.
Photo: Andre Carrotflower, CC BY-SA 4.0