The heat is on!
Gov. Kathy Hochul has ordered a sweeping audit of executive pay at New York’s utility companies after Con Edison proposed double-digit rate increases — even though a similar 2023 probe rubber-stamped the bigwigs’ multimillion-dollar compensation packages.
The Hochul-controlled Public Service Commission announced the action Thursday, amid outrage over Con Edison’s request to jack up electric bills by 11.4% and send gas bills soaring 13.3% for its 3.6 million customers.
Tapped-out New Yorkers would pay $1,848 more per year compared to five years ago if the proposal is okayed by the PSC — which is packed with her appointees.
Hochul, who opposes the rate increases, said, “This audit will ensure that utility compensation structures are working for New Yorkers … We will hold utilities accountable and ensure their focus is where it should be: delivering reliable, affordable, and high-quality service.
“At a time when families are facing rising costs, we are taking decisive action to ensure every dollar that customers pay is justified and that utility companies are prioritizing the needs of the people they serve.”
ConEd executives are living well, according to reports filed with the Securities and Exchange Commission and the PSC.
Chairman and CEO Timothy Cawley has a total compensation package of $9.59 million.
That figure includes a $1.3 million salary, $2.14 million in incentives/bonus pay, and more than $6 million in stock options plus deferred compensation.
Customers pay about $1.3 million of his compensation, according to Con Ed’s filing.
Recently retired Robert Hoglund, who was the utility behemoth’s chief financial officer, received a package of $3.64 million that includes salaries, bonuses, stock options and deferred compensation.
Customers covered about $1 million of his salary, records show.
ConEd president Matthew Ketschkes gets $3.1 million, a package that includes $1.7 million in stock options, $1.34 million in salaries, incentive/bonus pay, and deferred compensation.
Ratepayers cover about $707,000 of his salary, the report said.
PSC chair Rory Christian said, “This audit is about accountability. Management compensation is a reflection of a company’s values, and we expect utility values to mirror our own and be focused on providing quality, affordable service to ratepayers.”
However, PSC conducted an independent audit in 2023 of ConEd that gave mostly positive reviews and did not question the compensation of brass.
“The auditor found that Con Edison’s management variable pay incentive program and O&R’s annual team incentive plan use quantifiable goals to promote the corporate mission, safety and
reliability, environmental goals, and Commission objectives,” the PSC release outlining the findings said.
It praised Con Edison for moving to comply with the state’s green mandates — the compliance costs of which the utility now cites in part for the proposed rate hike.
“Con Edison’s long-range plans describe a significant business transformation to become a clean energy company adopting New York State’s CLCPA (Climate Leadership and Community Protection Act) goals,” the PSC’s audit said.
