Utility workers used heavy machinery to ground up the wrongly placed "H" and "C" in the "SHCOOL X-NG" sign on Tuesday.
The correction was made a day after the New York Post reported the spelling error.
The words were created with industrial "textured tape" that permanently sticks to the asphalt.
Con Ed told the Post that the blunder occurred when a contractor ripped up the street for utility work and replaced the existing markings.
It says the mistake outside the Lower East Side building that houses three schools had been there since July 2010.
(Copyright 2012 by The Associated Press. All Rights Reserved.)