NYC Electricity Delivery Carries 36% to 43% Tax
Businesses paying Con Ed bills will see municipal property taxes itemized under a new transparency rule.
Updated on Nov. 2, 2026 in Utilities
Live Poll
Should New York City stop collecting taxes through residents' electric bills?
A Manhattan Institute report found New York City relies on its electric grid for tax revenue more heavily than any other major U.S. city, with taxes adding an effective 36% to 43% to electricity delivery costs. The city's largest utility tax is a property tax on Con Ed's wires and equipment that Con Ed passes to customers without itemizing it on bills.
Why it matters
For New York City businesses, electricity delivery costs now carry a hidden layer of municipal tax that rose from $1 billion to $2.1 billion for Con Ed alone between 2015 and 2025. The tax persists largely because it is concealed from the public, which is why a recently agreed bill transparency provision matters for operators tracking their energy overhead.
The Manhattan Institute analysis puts New York City's effective tax on electricity delivery at 36% to 43%, with the city collecting about 8 cents per kilowatt-hour through Con Ed compared with about 1 cent in Chicago and Washington, DC. Con Ed's city property tax bill on its electric facilities doubled from $1 billion in 2015 to $2.1 billion in 2025, and the report does not address how the tax would change under a sales-tax alternative.
The players
Manhattan Institute
A New York-based think tank whose research on urban fiscal policy and infrastructure costs shapes debate over city taxation.
Consolidated Edison (Con Ed)
The regulated electric utility serving New York City and Westchester County, whose delivery charges and property tax pass-through drive costs for commercial and residential customers.
New York State Public Service Commission
The state regulator that oversees utility rates and service in New York and approved the bill transparency provision with Con Ed.
The details
New York City charges a property tax on the wires and equipment Con Ed uses to deliver power, and Con Ed passes that cost through to customers rather than listing it separately on electric bills. The report estimates New York taxes add almost $47 a month, or $561 a year, to a typical single-family household and more than $22 a month to a typical apartment. For a typical NYC apartment with a $118 monthly bill, that means over $22 is attributable to city taxes.
Timeline
2015: Con Ed's city property tax bill on its electric facilities was $1 billion.
2025: The bill had grown to $2.1 billion.
2025: The state Public Service Commission and Con Ed agreed to a bill transparency provision requiring itemized municipal property taxes on customer bills.
Market Landscape
New York City's electricity tax burden is a local outlier, with the 8-cent-per-kilowatt-hour collection through Con Ed far above the roughly 1 cent collected in Chicago and Washington, DC. The bill transparency provision agreed between Con Ed and the state Public Service Commission sets a disclosure precedent for how municipal utility taxes reach customers.
Operators in New York City should check whether their Con Ed bills reflect the municipal property tax once the bill transparency provision takes effect, and factor that tax into energy budgets. Businesses weighing occupancy or equipment decisions should treat electricity delivery as carrying a 36% to 43% tax load when comparing costs against other cities.
The takeaway
Electricity delivery in New York City carries a substantially higher tax load than in comparable cities, and that load has been largely invisible on customer bills. Operators should review their utility statements for the itemized municipal tax line once the transparency provision is in effect and budget against the full delivery cost.
Further reading
For context on how these costs reach local ratepayers, see Utilities coverage across the New York City market.
Live Poll
Should New York City stop collecting taxes through residents' electric bills?
