A bill working its way through the New York State Legislature would dissolve Central Hudson Gas & Electric and replace it with a publicly controlled utility serving the Hudson Valley.

The Hudson Valley Power Authority Act, introduced by state Sen. Michelle Hinchey and co-sponsored by 20 members of the Assembly and Senate, would create the Hudson Valley Power Authority to acquire Central Hudson’s assets and operate as a public authority. The bill was first introduced in 2024 and reintroduced in 2025. It remains in committee in both chambers.

Supporters argue the change would reduce energy costs by eliminating the need to generate profit for shareholders. A feasibility study by NewGen Strategies, commissioned by backers of the bill, projected consumer rates could drop by 4.6% within five years of the acquisition.

Opponents contest that projection. A study by Concentric Energy Advisors, commissioned by the Protect Our Power coalition, which opposes the bill, found rates could instead rise by 36% — a figure that includes the cost of converting half of Central Hudson’s natural gas customers to electricity. Central Hudson is already working to reduce natural gas usage among its customers.

The cost of acquiring Central Hudson’s assets has been projected at between $3.5 billion and $7.5 billion. The utility reported total revenue of approximately $1.15 billion and profit after expenses of roughly $135 million as of 2025. The acquisition would be financed through bonds repaid by ratepayer revenue.

“The purchase of Central Hudson’s assets would cost billions of dollars — a cost that would be borne by taxpayers and/or ratepayers,” said Joe Jenkins, Central Hudson’s director of media relations.

Klaus Yoder, a steering committee member of the Hudson Valley for Public Power Coalition, a group advocating for the bill’s passage, said the goal is straightforward.

“Between housing and energy, the cost of living here has become unbearable for whole swaths of local residents,” Yoder said. “Our main objective is to make living in the Hudson Valley affordable.”

As a public authority, the HVPA would be tax-exempt, raising concerns about lost municipal revenue. Central Hudson currently pays more than $62 million annually in local taxes. Jenkins said it was not clear where that revenue would come from if the authority were created.

The bill addresses those concerns by requiring the authority to enter into payment-in-lieu-of-taxes agreements with municipalities and school districts, guaranteeing equivalent payments to what a taxable utility would owe.

Labor opposition has also emerged. The Utility Labor Council argues the legislation would cost Central Hudson workers their jobs and provides insufficient worker representation in the new authority’s governance structure.

Yoder disputed that characterization, saying the transition “would involve keeping the current employees in place” and would “amplify the voice and say that workers have over the direction of the company.”

Under the bill, any Central Hudson workers hired by the authority following the acquisition would retain their existing contracts and benefits. The authority would also be prohibited from hiring third-party contractors for utility work without union consent, and construction projects would be subject to Article 8 of New York Labor Law.

The business manager of the union representing the authority’s workers would be guaranteed a seat on the board of trustees. All other board seats would be filled by appointees of elected officials.

New York public authorities are quasi-private entities created by legislation and governed by boards chosen by elected officials. They can operate with fewer oversight requirements than state agencies in areas such as employment, contracting and financial reporting, and may issue bonds without public approval. More than 95% of outstanding state-backed debt has been issued by public authorities.

The Hudson Valley for Public Power Coalition will hold a town hall on the bill Thursday, June 25, in Beacon. The event is scheduled to begin at 6 p.m. at St. Andrew & St. Luke’s Episcopal Sanctuary, 850 Wolcott Ave. Yoder said the group is planning a similar event in Orange County in September.