Demand charges and EV charging rate relief in Con Edison and PSEG Long Island territory (2026)

How a commercial bill charges an EV charger

A commercial electric bill has two main parts. Energy is billed per kilowatt-hour (kWh) delivered. Demand is billed per kilowatt (kW), based on the highest demand recorded in a short measurement interval during the month; confirm the interval for your service classification with the utility.

A single DC fast charging session at 150 kW can set the demand charge for the entire month, even if the charger is used only a few times. For this reason, a new public charger with few sessions can produce an electric bill larger than the revenue it collects.

Load factor determines the real cost per kWh

Load factor is the average power drawn divided by the peak power drawn. A 150 kW charger that delivers 360 kWh per day averages 15 kW, a load factor of 10%. Early-stage public chargers often operate at 5 to 10%.

At a low load factor, the demand charge is spread over few kWh, which raises the effective cost of each kWh sold. As utilization grows, the same demand charge is divided across more energy. The programs below are designed to carry sites through that early period.

Con Edison EV Phase-In Rate (Rider AD)

The EV Phase-In Rate is available to customers eligible for SC9 Rate I or II, or PASNY Rate I or II, whose charging makes up at least half of connected load (a Charging Ratio of 50% or more) or whose EV charging is separately metered. It cannot be combined with Rider J or Excelsior Jobs Program discounts.

Con Edison assigns a tier based on the site's load factor over the previous year; a site with less than six months of data starts in Tier 1. Lower tiers pay little or no delivery demand charge and a higher per-kWh delivery charge. Tiers are reviewed twice a year, and a site leaves the rate after its load factor stays at 25% or higher for four evaluation periods. The customer charge is $71 per month on Rate 1 and $500 on Rate 2.

These figures are examples for planning. Rates change, and supply charges and surcharges are billed in addition.

Con Edison demand charge rebate and SmartCharge Commercial

In January 2023 the Public Service Commission approved alternatives to standard demand charges for charging stations (Case 22-E-0236), including a 50% demand charge credit for public DC fast chargers in Con Edison and Orange and Rockland territory and a commercial managed charging program.

That program, SmartCharge Commercial, pays $0.03 per kWh for charging between midnight and 8 a.m., and $10 per kW from June to September or $2 per kW from October to May for reducing load during network peak periods. Whether the demand charge credit and SmartCharge Commercial can be combined with each other and with the EV Phase-In Rate should be confirmed with Con Edison before enrolling.

PSEG Long Island DCFC Incentive and EV Phase-In Rate

PSEG Long Island's DCFC Incentive Program rebates up to 50% of demand charges for Rate 281 customers with public DC fast chargers of at least 50 kW with CCS or CHAdeMO connectors. NACS connectors are allowed when at least one CCS or CHAdeMO connector is also provided. The program runs through December 2026, and PSEG Long Island calculates the rebate and issues a check once the requirements are met.

PSEG Long Island's own EV Phase-In Rate is available now to Rate 285 customers, and Rate 281 customers become eligible in January 2027, when the DCFC Incentive ends for them. PSEG Long Island runs its own Make-Ready program, separate from the Public Service Commission program. On April 21, 2026, it stopped pre-approving DC fast charging projects for 2026 because applications exceeded the budget; applications are still accepted but are not funded at present, and incentive amounts may be revised. Confirm the current status of Level 2 incentives directly with PSEG Long Island.

The Make-Ready Program in 2026

The Joint Utilities Make-Ready Program covers Con Edison, National Grid, NYSEG, RG&E, Central Hudson and Orange and Rockland. It pays for utility-side and customer-side infrastructure such as conductors, trenching, panels, energy storage, load management and conduit for future ports. Chargers, power modules, mounting and network fees are not eligible. Incentive levels range up to 100% for public, non-proprietary DC fast charging in disadvantaged communities, up to 90% for public sites with standardized plugs, and up to 50% for non-public sites such as workplaces.

Under a Public Service Commission order of March 23, 2026 (Case 18-E-0138), the program stopped accepting Level 2 applications on April 22, 2026 and paused DC fast charging applications on the same date. DC fast charging may reopen once each utility's data-reporting compliance plan is approved. The Participant Guide was updated on July 13, 2026.

• Participants, Approved Contractors and network service providers (NSPs) must meet a 90% data-reporting threshold, and projects must use an NSP from the new Eligible NSP List.
• DC fast charging sites need at least two plugs, ports of at least 50 kW delivered simultaneously, ISO 15118 hardware and software conformance, OCPP 2.0.1 or later and a model on the verified product list.
• Sites must operate for five years, with DC plugs operational 95% of the year and stations 99%.
• The final incentive payment is withheld until one month of utilization and uptime data has been reported for each charger.

The practical lesson is that data reporting is now a condition of funding. When the program reopens, the choice of network and contractor will affect eligibility as much as the hardware does.

Other programs, and the end of the 30C credit

NYSERDA Charge Ready NY 2.0 supports Level 2 charging only: $3,000 per port at workplaces, multifamily buildings and hotels, an additional $1,000 per port in a disadvantaged community, and $1,000 per port for assigned or fleet-reserved spaces. NYSERDA raised the budget to $28 million in February 2026, and funds are awarded first come, first served; confirm the deadline and remaining funds with NYSERDA. Equipment and networks must be on NYSERDA's eligible lists, and retail and restaurant parking is not among the eligible property types.

For highway corridor DC fast charging, NYSERDA administers federal NEVI funds. The April 2026 round, PON 6150, requires at least 150 kW, four ports charging simultaneously, a location within one travel mile of an exit and 24-hour access, and Buy America rules apply to the equipment.

The federal 30C Alternative Fuel Vehicle Refueling Property Credit does not apply to charging equipment placed in service after June 30, 2026. We are contractors, not tax advisors. For questions about property placed in service earlier, or about other tax treatment of a charging project, consult a CPA, such as Copper River Tax (copperrivertax.com).

Designing the site to limit the demand peak

• Power sharing across dispensers, so several cars divide one power limit.
• A site kW cap set in the charger or the back-end, using OCPP smart charging profiles.
• Battery buffering, which can count as make-ready infrastructure; note the 2026 tariff on imported lithium-ion batteries.
• Overnight scheduling for fleet vehicles, which also earns the SmartCharge Commercial off-peak payment.
• A separate service or meter for the chargers, which keeps building demand separate and supports Phase-In Rate eligibility.

With 12 months of electric bills and a parking layout, we can estimate demand charges for options such as two Level 2 ports, two 60 kW DC ports and four DC ports, and identify which programs are open for the site at that time. We prepare the utility application and coordinate the work, which is performed by our licensed partner electricians; enrollment decisions rest with the utility and NYSERDA. Program information in this guide was last checked on October 25, 2026.