Gov. Kathy Hochul on Tuesday pushed back against proposed rate hikes from Con Edison, directing the state’s Department of Public Service to reject the company’s request for approval.

The proposed increase from the utility giant would see electricity rates rise by 11.4% and natural gas rates by 13.3% in 2026.

At a news conference, Hochul called the proposal “shocking.”

“This is a real hit on families when they didn’t budget for this,” the governor said. “They weren’t plan for this, and these bills going up, upwards of $500 a year — I’m trying to put $500 back in their pockets because of the inflation rebate, and it’s going to go right out the door to pay this bill? Come on, how are they supposed to get ahead? This is intolerable to me.”

ConEd has said the hikes are needed to meet changing consumer demands, like building electrification for charging e-vehicles and better protecting against extreme weather.

The company also said that the biggest driver of rising rates is New York City property taxes, which can account for as much as 30% of a customer’s bill.

ConEd raised electric rates 9% in 2023, 4% in 2024 and 1.4% this past January. If the 11.4% increase on electric rates is approved, it would amount to a more than 26% jump over four years.

The governor on Tuesday also directed the Department of Public Service to conduct a statewide audit of utility company salaries and compensation.

“The audit will focus on compensation for non-union utility management employees statewide and the results will inform future rate cases to protect New Yorkers from unfair rate hikes,” Hochul said in a release. “Numerous recent management and operations audits of large, investor-owned electric and gas utilities have highlighted meaningful concerns with how utilities administer their programs.”

“For example, in a recent audit of Central Hudson, the auditor concluded their bonus structure rewarded financial performance, but only set reliability and service quality metrics at the bare minimum,” the release added.

Hochul’s actions come amid growing concerns over affordability in New York, with energy costs continuing to rise.

The governor is not alone in calling the proposed rate hikes unacceptable. On Monday, Bronx Rep. Ritchie Torres decried Con Ed’s proposal as “tone deaf and out of touch.”

“Con Edison is getting away with murder,” Torres said at a press conference.

In a statement provided to NY1 Tuesday, a Con Ed spokesperson said, in part: “Affordability in our state and country touches every aspect of New Yorkers’ daily life — from energy to housing to groceries. Con Edison is acutely aware of this, which is why we work with customers to make utility bills more affordable.”

“Our energy efficiency programs help our customers use less energy and save money, we’ve invested 300 million dollars in energy assistance programs for low- and moderate-income customers in 2024 and continue work to enroll all eligible customers, and advocate for policy changes to make utility bills more affordable,” the spokesperson added. “We also have a responsibility to continue to safely and efficiently deliver the nation’s most reliable power while complying with state laws and regulations.”