The New York State Public Service Commission (PSC) approved a settlement with Con Edison that will require the New York City power provider to study the effects of climate change on its infrastructure and implement measures to plan for and mitigate those effects. However, although the settlement is specific to Con Edison, the PSC’s order states that "the obligation to address these considerations should be broadened to include all utilities," and all New York power utilities "should familiarize themselves with scientists' projections for local climate change impacts on each service territory."
"We expect the utilities to consult the most current data to evaluate the climate impacts anticipated in their regions over the next years and decades, and to integrate these considerations into their system planning and construction forecasts and budgets," said the PSC. Its decision was made in the context of a petition by Con Edison to change its customer rates. The settlement was "sought by environmental groups," according to a press release from the Environmental Defense Fund, which adds that the "historic decision will serve as a nationwide model."
The decision requires Con Edison to perform a climate vulnerability study as well as the continuation of the "Storm Hardening and Resiliency Collaborative," which was a forum for developing "innovative resiliency measures" and considering how to invest $1 billion in storm hardening funding.
Professor Michael Gerrard, director of the Columbia Center for Climate Change Law, said, "The Con Ed settlement serves as a model for how public utility commissions across the country should require the companies they regulate to ensure that essential services are still provided in the face of future climate change. We are extremely pleased with Con Ed’s receptivity to considering recent scientific projections rather than basing its investments on historical events." The Center has a blog post about the decision.