Central Hudson recently submitted a one-year rate plan requesting a 16 and 19 percent hike for electric and gas delivery, respectively, beginning in July 2024. If approved, the utility says that would mean an extra dollar per day for the average electric ratepayer, and an extra dollar per day for the average gas ratepayer.
Ron Giordano was one of many customers who called in with questions and comments on Tuesday.
“I just have some concerns. I notice that Central Hudson’s saying they need this one-year-only raise. Does that mean that, after one year, the rate’s going to go back down?" he asked. "Because if that does happen, that’ll be historic, as far as I can tell. Since their rates never go down.”
"Hi there, Mr. Giordano. This hearing is primarily to hear comments from you," said Ashley Moreno, an administrative law judge with the Department of Public Service. "But once a rate is set, that would be the rate until it was changed."
“I just feel that the rate increase is not really something we should be giving Central Hudson, based on their performance," Giordano sighed. "If anything, we should freeze their rates. I don’t think we should be rewarding Central Hudson.”
In its plan, the utility cites customer arrears and infrastructure improvements for the rate increase. Central Hudson says roughly 75 percent of the infrastructure investments proposed in its outlook would go toward replacing old equipment, as 20 percent of its electric infrastructure is currently operating beyond its “expected useful life.” Additionally, the utility says it needs to make changes to comply with New York’s Climate Leadership and Community Protection Act, and it also wants to allocate more resources for storm preparation and an expected shift from bimonthly to monthly meter readings.
However, the proposal comes after years of complaints stemming from Central Hudson’s billing practices. Last year, the Commission found that the utility’s new billing system could not handle complex situations, forcing thousands of customers to grapple with overbilling and other errors.
CEO Christopher Capone detailed the company’s efforts to resolve the breakdown in an interview with WAMC earlier this year.
“We are going to be hiring upwards of 100 people, including 36 people, specifically, in our contact center," Capone explained. "We’ve spent over $30 million of non-ratepayer funds to address these issues. And we’ll continue to invest funds as needed to resolve these issues, and we’ll continue to do the work that’s necessary to bring again the service quality back to what customers expect from us and what we expect from ourselves, and to resolve the remaining issues.”
The utility has since agreed to pay for an independent monitor to review whether efforts to fix the billing system have been effective.
The proposed rate increase has drawn renewed criticism from local lawmakers and officials, from Assemblymembers Didi Barrett and Sarahana Shrestha to Ulster County Executive Jen Metzger, all Democrats.
Last month, Democratic State Senator James Skoufis of the 42nd District asked the Commission to reject the rate hike, saying he is still receiving complaints about billing errors from constituents. Democratic Congressman Pat Ryan of the 18th District shared that sentiment in an interview with WAMC.
“They have no business raising rates any amount, and definitely not 16, 19 percent, which is what they’ve proposed," said Ryan. "So, we’ve pushed back hard on that, and said that just can’t even be on the table until we sort out what’s very much still being investigated and fixed.”
The Commission has said that utilities often propose a much higher rate hike than they get — but Ryan urges ratepayers to make themselves heard.
Starting Tuesday (September 19), Assemblymember Shrestha will hold a series of seven town halls across the mid-Hudson Valley to discuss the issue of "energy democracy." Meetings are scheduled at the following locations:
- 9/19 (Tuesday) at 6:30 p.m. — Rhinebeck Town Hall
- 9/23 (Saturday) at 2 p.m. — Kingston Library
- 9/26 (Tuesday) at 6:30 p.m. — SUNY New Paltz
- 10/3 (Tuesday) at 6:30 p.m. — Saugerties Senior Center
- 10/5 (Thursday) at 6:30 p.m. — Woodstock Community Center
- 10/19 (Thursday) at 6:30 p.m. — Olive Free Library
- 10/21 (Saturday) at 2 p.m. — Esopus Town Hall
Also on Tuesday (September 19), at the Newburgh Free Library, Democratic State Assemblyman Jonathan Jacobson is hosting a billing assistance meeting where customers can work one-one-one with a Central Hudson representative to resolve their billing issues. That runs from 3:30 to 5:30 p.m.
The Commission has two more virtual and telephone hearings scheduled for 1 p.m. and 5 p.m. on Wednesday (September 20). Those who wish to make a statement are asked to register in advance.
To join the Wednesday, 1 p.m. meeting:
- Online: https://signin.webex.com/join
- Meeting Number: 2338 342 7497
- Password: Sept20-1pm
- By Phone: (518) 549-0500
- Access Code: 2338 342 7497
- Password: 73782001
To join the Wednesday, 5 p.m. meeting:
- Online: https://signin.webex.com/join
- Meeting Number: 2334 829 1678
- Password: Sept20-5pm
- By Phone: (518) 549-0500
- Access Code: 2334 829 1678
- Password: 73782005
After calls from local officials, the Commission says it will also hold in-person public hearings at a later date, but no details have been announced yet.
