CONED <ED> AGREES TO CUT RATES, WRITE OFF DEBITS
Consolidated Edison Co of New York Inc
has agreed to reduce its rates 3.1 pct next month and write-off
50 mln dlrs of deferred debits, New York Governor Mario M.
Cuomo said.
    He told a press conference the 132.5 mln dlr reduction in
annual rates, along with the removal of 50 mln dlrs in fuel
charges from base rates are part of an agreement which will
reduce the utility's base electric rates by about 500 mln dlrs
per year over the next three years and bar any rate increases
until at least April 1990.
    Governor Cuomo said the agreement with Con Ed, which must
be approved by the State Public Service Commission, was
negotiated by the State Consumer Protection Board, Public
Servcice commission Trial Staff, the State Attorney General,
the City of New York and several other parties.
    He said the agreement "will produce the first base eldctric
rate decrease for Con Edison in more than 20 years.
    As a result of an earlier stipulation, we have already had
a four year freeze on Con Edison's base electric rates since
March 1983," he added.
    Con Edison said the agreement reflects reduced federal
taxes and lower interest rates.
    The utility said another factor includes improved economic
conditions in the New York City area, which led to increased
sales.
    It pointed out "declining fuel costs have resulted in an
average 10 pct decrease in our customers' bills since 1984."
 Reuter
