Central Hudson rate plan prompts protest

Residents voice strong displeasure at hearing

By Alberto Gilman
Posted 10/31/23

Nearly two hours of comments voiced sentiments of disapproval and frustration over the proposed rate increases by Central Hudson. The proposed rate increase announcement follows a controversial …

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Central Hudson rate plan prompts protest

Residents voice strong displeasure at hearing

Posted

Nearly two hours of comments voiced sentiments of disapproval and frustration over the proposed rate increases by Central Hudson. The proposed rate increase announcement follows a controversial period within the company that saw a faulty billing system released to the public, a New York State Department of Public Service investigation and the dismissal of the company’s president and chief executive officer.

Central Hudson has proposed a new rate plan to the Public Service Commission (PSC) to replace its current plan, which ends in June 2024. The new plan enables the company to provide continued safe and reliable utility operations, replace aging infrastructure, respond to extreme storms and weather events, facilitate New York State’s important environmental goals, and implement new technologies to improve customer service. The plan will be reviewed by state regulators and interested parties, and if approved would be implemented during the summer of 2024.

The proposed plan includes a total increase of approximately 16% on the average residential electric bill and approximately 19% on the average natural gas bill. If approved, this would amount to approximately $1 per day for the typical electric customer and $1 per day for the typical natural gas customer.

“Central Hudson believes in an open and transparent process for establishing new delivery rates; these in-person, public hearings are a key component to a year-long, comprehensive review of our rate proposal. Our customers’ concerns will be taken into account as we work with our regulators and interested stakeholders to arrive at a plan that balances affordability with meeting the evolving needs of customers and the clean energy objectives of New York State,” said Joe Jenkins, Director of Media Relations for Central Hudson. “Throughout the rate case process, Central Hudson will work with the Department of Public Service and interested stakeholders to explore options, such as a multi-year rate plan, that could result in lower annual bill increases.”

Community residents and several local and regional elected officials appeared on Tuesday, October 17 at SUNY Orange to voice their concerns and frustrations on the proposed energy rate increases. Residents came from the Town and City of Newburgh, the City of Beacon and Town of Saugerties.

“Our region faces an affordability crisis. Costs associated with housing, childcare, groceries, and energy have all increased. According to a recent Siena Research Institute poll, more than 80% of New York’s voters consider the rising cost of living to be a major problem,” said State Senator Rob Rolison (39th District). “My constituents shouldn’t have to choose between a doctor’s visit and feeding a family of four, between lighting and heating their home and filling up the gas tank to get to work. Yet that is precisely what a rate increase of this magnitude would mean for the average Newburgh, Poughkeepsie, and Hudson Valley resident.”

“Central Hudson is making a nice annual profit, and they own the gas lines - meaning that even when other gas providers are chosen, Central Hudson still gets a fee for its service. For the City of Newburgh, we have a large historic district, which means that it takes a large amount of work to insulate homes. This alone makes the cost [of] heating and cooling a house fluctuate,” said Councilman Anthony Grice.

“Central Hudson through its contractors do a horrible job on paving out streets after replacing gas lines, are slow to fix street lights, and has overcharged customers through estimated billing. They should be fixing their billing system and giving us all discounts, instead of trying to raise their rates.”

“The cost of the electric and gas has not gone up tremendously. What’s gone up is something that we have no choice here. And that is delivery,” said City of Newburgh resident and business owner Michele Basch. “Something must be done. Because our service when there is an emergency is slow.”

“As I have stated publicly before, I am staunchly opposed to the proposed rate increase of 16% for electricity and 19% for gas. Over the past two years, Central Hudson customers have suffered with non-billing, late billing, grossly inaccurate billing and terrible service. It is incredible that Central Hudson is seeking these increases,” said Assemblyman Jonathan Jacobson. “Customers have learned from experience not to trust their Central Hudson bills.”

Comments from the public are able to be submitted throughout the entirety of the case until a decision is made. The process will take about 11 months before a determination is made. State residents can call an Opinion Line at 1-800-335-2120 for Comments on Commission Cases/Initiatives/Proceedings or file a complaint at dps.ny.gov/file-complaint.