Facing sustained and widespread criticism for its billing practices, Central Hudson Gas & Electric is shaking up its leadership.
In a statement Monday, the company announced Christopher Capone is replacing Charles Freni as president and CEO immediately. The move was made by the Board of Directors.
“The Central Hudson Board of Directors believes the time is right for a change of leadership,” said Margarita Dilley, chair of the Board. “Chris has a demonstrated history of successfully navigating challenges and leading teams to positive outcomes. We are confident in his ability to move the organization forward and to communicate those results to all stakeholders clearly and consistently.”
Freni will remain with Central Hudson to assist in the transition before retiring after about 40 years with the company.
Among the elected officials demanding change, New York Congressman Pat Ryan used a recent House floor speech to call for Freni’s resignation. Late last year, the state Public Service Commission concluded the utility’s billing practices could not handle complex situations, resulting in overbilling and other errors for thousands of customers.
“I am encouraged that Central Hudson took this first step toward rebuilding public trust – now they must take urgent action to fix their broken systems and repay customers who were wronged,” Ryan said in a statement Monday. “I have already been in touch with Mr. Capone and made it clear that I will continue to fight on behalf of Hudson Valley families and businesses until customer complaints have been fully resolved and those who have been harmed are made whole. A transparent process that prioritizes customer input is the only way Central Hudson can resolve these issues once and for all. Open forums must be held to assist customers directly, all ratepayers who were illegally back billed must be reimbursed, and all investigations must be fully cooperated with. In the meantime, I urge the Public Service Commission to proceed rapidly with a prudence review and civil penalty assessment."
The utility had spent nearly $90 million overhauling its customer information system and said customers would be made whole in the end. Capone, who has been with Central Hudson since 2003, says a key priority will be addressing the frustrations resulting from the implementation of the new customer billing system.
"We have hired a significant number of additional personnel including contact center employees and other professionals to work on these issues around the clock,” said Capone in a prepared statement. “More must be done and my commitment to you is I will be transparent about the progress we are making. There are more than 1,100 dedicated and talented professionals at our company who work tirelessly to deliver safe and reliable energy to their neighbors in communities throughout the mid-Hudson Valley. As the new CEO, I will work to support them so they in turn can support our customers.”
Ulster County Executive Jen Metzger, a Democrat, says it’s a welcome first step as the company addresses its failures.
