What Con Ed Does With Our Money
Fracked Gas Infra-structure
$200 million in new gas infrastructure, including $65M to upgrade its liquified natural gas plant in Astoria and to expand two gas transmission mains in Astoria and Lower Manhattan
Astoria also has a high energy cost burden and long-standing, disproportionate pollution burden
(846M to shareholders in 2018)
Over the past two decades (‘98-‘18), Con Ed raised its total annual dividend amount at an average growth rate of 3.2% per year, which translates to a total payout increase of 79% over the past 20 yrs. (For context, a “high yield” stock is considered to be one with more than a 2% dividend.)
Con Ed’s stock is considered a “dividend aristocrat,” and they have given shareholders 45 years of consecutive dividend increases.
Dirty Energy Lobbying
$1.4M in dues for trade associations like the Edison Electric Institute and American Gas Association that spread pro-gas propaganda, lobby to cripple renewable energy, deregulate our energy market, and consolidate power for utilities.
Con Ed has also spent $2.1M lobbying in New York in the past 7 years.
$1.8 million for a strike contingency to union bust its workers when Local 1-2’s contract is up next year
In 2012, Con Ed locked out 8,500 workers to avoid a strike after contract negotiations broke down. This lockout left the city’s grid vulnerable and in a state of disrepair when Superstorm Sandy hit the city just a few months later in October, thereby exacerbating the effects of this historic natural disaster.
$9.5 million ($4,142/hour) salary of CEO John McAvoy
Con Ed uses a contractor, Mercer, to consult on compensation for officers. (Shouldn’t the PSC determine officer compensation?)
Managers are paid in bonuses which are tied to stock price, which further incentivizes them to prioritize shareholder value over everything else
The retainers of $115,000 for each member of Con Ed’s board of directors
Board members get an additional $150,000 in “deferred stock units” annually, which is not paid for by ratepayers yet, but Con Ed might try to change that in the future.
Con Ed’s Board of Directors includes John Killian (a former Verizon CFO), William J. Mulrow (a Blackstone advisor), and Ellen Futter (President of the American Museum of Natural History, which is notorious for having the Kochs and Mercers on its board.)
Excessive Executive Compensation
Cleaning Up Their Own Mess
$60 million in environmental cleanup costs for toxic remediation sites for which Con Ed is responsible
Con Ed should be made to pay for polluting our environment--they shouldn’t be able to pass remediation costs onto ratepayers.
Sites with cleanup costs greater than $50K include:
Maspeth Substation Site (PCB oil in groundwater table, formerly owned site)
Gowanus Canal (EPA National Priority List site, $2,440,000 anticipated cleanup cost)
Newtown Creek (11th Street Conduit Facility)
Third Avenue Yard
Astoria site (will cost $20M)
$243 million for MTA repairs (Con Ed's electrical failures caused thousands of subway delays in the summer of 2017)