Exclusive | NYC landlord switching to dirtier heating oil because of soaring Con Ed gas bill: ‘I’m tapped out’

A Landlord’s Struggle with Skyrocketing Gas Bills: A Desperate Switch to Heating Oil

In Queens, New York, a residential-building owner, John Norton, has reached a breaking point with the exorbitant gas heating bills from Con Edison (Con Ed). Frustrated by the increasing costs, Norton has decided to switch to a dirtier but more affordable alternative: home heating oil. This drastic measure underscores the broader challenges many New Yorkers face due to rising energy costs and stringent "green" mandates that are pushing natural gas out of reach for many. Norton, who is also a licensed plumber, shared his recent Con Ed bill with The Post, revealing that the cost of gas delivery was a staggering three times the cost of the gas supply itself. His total bill for one of his buildings from October 23 to November 25 was $601.23, with $451.78 allocated to delivery and $149.45 for the gas. A $200 late fee pushed the total to $801.23. "That’s ridiculous," Norton exclaimed, emphasizing his financial strain and the impossibility of keeping up with such costs.

The Burden of Delivery Charges and Rising Rates

The issue of spiraling gas bills is not unique to Norton. Con Ed recently proposed double-digit rate hikes, seeking approval from the New York State Public Service Commission to increase average electric bills by 11.4% and gas bills by 13.3%. If approved, these increases could leave customers paying nearly $1,848 more annually compared to what they paid in 2020. Norton, who is already struggling to pay his current bills, sees no other option but to abandon natural gas. He is investing in a $7,000 high-efficiency oil-fired hot-water boiler for one of his buildings, a move he believes will save him hundreds of dollars monthly. By switching to oil, he avoids the hefty gas delivery charges, which he described as unsustainable. "Now I get rid of the gas delivery charge. What choice do I have?" Norton asked, highlighting the desperation felt by many consumers.

A Shift in Strategy: Oil as a Cost-Effective Alternative

Norton has secured an oil delivery supplier and expects his monthly heating bills to drop significantly. He estimates that filling his 40-gallon boiler at $3 per gallon will cost around $120 a month, a far cry from the $601 he paid for gas. While this switch may seem counterintuitive in an era of environmental consciousness, Norton argues that financial necessity is forcing his hand. "How can anyone keep up with that heating bill?" he lamented, drawing attention to the harsh realities of rising energy costs. His decision reflects a broader trend of consumers and businesses seeking alternatives to expensive utility services, even if it means resorting to less environmentally friendly options.

Political Criticism and Finger-Pointing Over High Delivery Charges

The outrage over Con Ed’s delivery charges has also drawn the attention of local politicians. Bronx Congressman Ritchie Torres criticized the utility giant, accusing it of systematically overcharging working-class and middle-class New Yorkers. Torres pointed out that Con Ed customers pay up to 200% more in gas delivery charges compared to those served by National Grid, another gas utility in the city. He blamed Governor Kathy Hochul and the Public Service Commission for enabling what he described as "price-gouging" by Con Ed. "Instead of protecting the people of New York from price-gouging, Governor Kathy Hochul and the Public Service Commission have enabled ConEd to prey upon the working class and middle class in an age of inflation," Torres said.

Con Edison’s Defense: Delivery Charges and Green Mandates

In response to the criticism, Con Edison defended its delivery charges, explaining that they are set by the New York State Public Service Commission and cover the costs of operating a complex energy system. The utility giant emphasized that these charges fund safety projects, infrastructure upgrades, and technologies like leak detection and gas detectors. Additionally, Con Edison noted that taxes and fees imposed by state and local governments make up a significant portion of the delivery charge—about 25 to 30% of a gas heating customer’s bill. In Norton’s case, taxes and fees accounted for approximately $158 of his $601.23 bill. Con Edison also highlighted its commitment to maintaining safety standards and affordability while complying with the state’s green agenda under the Climate Leadership and Community Protection Act.

Green Initiatives and the Future of Energy in New York

Despite his frustration with utility bills, Norton is not entirely opposed to environmental initiatives. In fact, he is building a new solar-powered home along the Rockaway Peninsula, equipped with battery storage to store excess electricity. Norton’s decision to invest in solar energy aligns with New York’s ambitious climate goals, which include reducing greenhouse gas emissions by 40% by 2030 and achieving 100% zero-carbon-emission electricity by 2040. However, Norton’s immediate switch to heating oil highlights the tension between these long-term environmental aspirations and the short-term financial realities faced by many residents. "I’ll be so green out that you’ll regret it," Norton quipped, expressing his desire to go "off the grid" and escape the burden of rising utility costs. His story serves as a microcosm of the challenges New Yorkers face in balancing environmental responsibility with economic survival.