Dive Brief:

• Consolidated Edison and officials in New York announced on Tuesday that the utility has agreed not to raise its gas and electric rates for two years as it looks to spend $650 million on storm preparation.
• Con Ed wanted a $450 million rate increase as it prepares for another storm the size of Hurricane Sandy, but that push was opposed by New York Gov. Andrew Cuomo, who argued that the state's residents already pay some of the highest rates in the country.
• New York's Public Service Commission will still have to approve the deal, which specifically protects New York City and Westchester customers from hikes.

Dive Insight:

The PSC is expected to sign off on this deal when it votes on Feb. 20. Ultimately, the costs for hardening the grid will have to be shouldered by Con Ed's shareholders as expenses eat into profits. It's not the plan Con Ed wanted, but it's what the utility will have to live with.