The insider angle
The supply line is the only one you can change
Every ConEd bill splits into two halves: supply (the energy itself) and delivery (the wires and mains that bring it). ESCOs sell only the supply half. Switching changes nothing else: same meter, same wires, same customer-service line, same Basic Service Charge, same surcharges, same tax.
In practice this means about 40 to 55 % of a typical residential ConEd bill is the shoppable supply line; the rest is fixed. Even a great ESCO deal can only move that portion. Look at it this way before signing anything: a 15 % discount on supply is roughly a 6 to 8 % cut on the total bill.
For wider context on why ConEd bills are high in the first place (NYISO Zone J + downstate gas pipeline constraints + urban delivery), see the ConEd hub.
Anatomy of a Con Edison bill
Page 1 is the summary. Pages 2 and 3 detail electric and gas. Steam customers get an additional page. Every line below appears on a real ConEd statement.
| Line item | Half | Shoppable? | What it pays for |
|---|---|---|---|
| Market price (kWh) | Supply | Yes | Wholesale electricity price ConEd pays on your behalf if you take default supply. |
| Merchant Function Charge | Supply | Yes | ConEd\'s cost to procure power on your behalf. Disappears if you switch to an ESCO. |
| Basic Service Charge | Delivery | No | Fixed monthly fee covering meter and billing. |
| Delivery charge (kWh) | Delivery | No | Per-kWh fee for moving electricity through ConEd wires. |
| SBC (System Benefits) | Delivery | No | State surcharge for energy-efficiency and low-income programs. |
| RPS (Renewable Portfolio Standard) | Delivery | No | State surcharge that funds renewable-energy goals. |
| Temporary NY State Surcharge | Delivery | No | Conservation incentive surcharge. |
| GRT & tax surcharges | Both | No | Gross-receipts tax passed through from ConEd to the customer. |
| Sales tax | Total | No | ~4.5 % NY state and local sales tax on the total. |
Gas and electric have the same structure
If you have both, your bill repeats the structure twice. The only differences are the unit and some small delivery-side mechanics.
Electricity
Unit: kWh. Wholesale price set in NYISO\'s Zone J market and passed through monthly. Default supply has no ConEd markup.
All-in residential rates typically land around 33 to 34 cents per kWh once supply, delivery, customer charge and surcharges are added.
Gas
Unit: therm. ConEd meters in ccf (100 cubic feet) and converts to therms using ~1.018 factor. Wholesale gas price drives the supply line; downstate pipeline constraints push winter prices up.
Delivery has a small first-few-therms structure: the basic service charge covers ~2.9 therms of usage; volumetric delivery starts after that.
Two levers that actually lower the bill
- 1.Cut usage. Most line items scale with kWh or therms. LED lighting, smart thermostats, weather-stripping, plugging energy vampires, lower heating set-points. See our energy-saving tips.
- 2.Shop the supply line. Compare ConEd default supply against fixed ESCO offers in our NY ESCO directory. The PSC has repeatedly found that the average mass-market ESCO customer pays more than the utility default. Re-check at renewal.
For income-qualified households: the EAP automatic discount and HEAP grants move more money than any rate-shop. Apply through NY OTDA at otda.ny.gov/programs/heap.
Frequently asked questions
Because New York opened to retail energy choice in 1998. Delivery is the wires-and-pipes half; ConEd always provides it and you cannot shop it. Supply is the energy itself; ConEd provides it by default or you can buy it from an ESCO. The supply line is the only part you can change.
It is the small overhead ConEd charges for procuring electricity on the wholesale market on your behalf (staff, computers, scheduling). It applies only if ConEd is your default supplier. Switch to an ESCO and ConEd no longer collects this charge from you; the ESCO bills its own equivalent instead.
A fixed monthly delivery fee that applies regardless of how much energy you use. It covers meter maintenance, billing, and a slice of the distribution network. You cannot avoid it; it appears even if your usage is zero. The amount is set in each ConEd rate case and approved by the NY PSC.
State surcharges added to every NY utility bill. SBC (System Benefits Charge) funds energy-efficiency programs, R&D, and low-income assistance. RPS (Renewable Portfolio Standard) funds the state's renewable-energy goals. GRT (Gross Receipts Tax) is a state tax on the utility that gets passed through to you. None are profit lines for ConEd.
Because the wires (delivery) are a regulated monopoly. ConEd owns them, the NY PSC approves the rates, and there is no competition possible. Supply is on a competitive market: ConEd buys it through monthly auctions and passes the cost through at zero markup, or you buy from an ESCO. Switching changes only the supply line; everything else on the bill stays identical.
NY State and local sales tax applies to most of the total. For ConEd residential customers, the effective sales-tax rate on energy delivery is about 4.5 %. The bill shows it as a line at the bottom of each section (electric, gas, steam).
Related Con Edison guides
More U.S. states with energy choice
Same playbook, different utility. Pick another deregulated state to compare utilities, suppliers and switching rules.
