The new rate request by Central Hudson isn’t as high as its last one. Last year, the utility proposed hiking delivery rates for electric and gas by 16 and 19 percent, respectively — an increase that would have amounted to an extra $30 a month for the average electric or gas customer — but the state Public Service Commission slashed that when it wrapped a year-long, litigated rate case a few weeks ago. Instead, the PSC approved a rate hike of 5.5 percent for electric delivery, and 7.3 percent for gas. Customers will start paying those rates this month, through June 2025.
Now, Central Hudson wants to hike prices again, for when that plan expires. This time, it wants to raise electric and gas delivery rates by 4.6 percent and 5.8 percent, respectively.
Democratic Congressman Pat Ryan says the back-to-back requests add insult to injury.
“The fact that this is able to happen year after year, we have to take a look at this whole process," says Ryan. "Folks across the Hudson Valley have so much financial pressure…to jack up prices even more, it’s totally unacceptable. So we’re gonna keep pushing them on that, and then we need the state — the PSC needs to relook at how they’re doing this, because it’s just not working.”
Central Hudson is still working to regain trust with customers and lawmakers following its botched transition to a new billing system in 2021, which resulted in the inaccurate billing of hundreds of customers. The utility recently agreed to absorb the costs of the fiasco in a nearly $65 million settlement with the PSC. The PSC says the utility’s billing system is now stable — but some lawmakers, like Ryan, say they’re still receiving complaints from constituents.
Central Hudson says it needs the increased funds to maintain its “core operations” beyond June 2025. Spokesman Joseph Jenkins says the utility wants to replace aging infrastructure, hire more cybersecurity specialists, and increase its capacity to connect with local solar farms, EV charging stations, and electric heat pumps. Under New York’s Climate Leadership and Community Protection Act, or CLCPA, the state is trying to transition 70 percent of electricity production to renewable sources by 2030, and achieve net-zero emissions by 2040.
“There’s a lot more work that needs to be done in order for us to meet the targets set forth by CLCPA," he adds. "So this additional capacity from a clean energy, renewable energy standpoint, would help.”
Jenkins says submitting back-to-back rate hike requests was necessary, as its current rate plan only runs through June 2025, and the PSC’s rate review process takes 11 months. It is possible for utilities to reach a multi-year rate agreement with the PSC once a rate case is opened.
“We know that higher utility bills are something no customer wants to see. But we also understand that we play a fundamental role in the lives of our customers, and the communities that we serve," says Jenkins. "Our commitment is to maintain a really sharp focus on our core operations for safe and reliable service.”
In a statement, Democratic State Senator Michelle Hinchey called Central Hudson’s rate hike proposal a “slap in the face” to Hudson Valley families. She alleges that, after being denied its full rate request this year, “this is Central Hudson’s way of trying to fool customers and the PSC into getting what they originally wanted — and slowly over time, maybe even more.” Democratic Assemblymember Sarahana Shrestha, who with Hinchey has sponsored a bill that would allow the state to take over Central Hudson, says her office will join the rate case as an intervening party.
Speaking with WAMC, Republican State Senator Rob Rolison says public input on the case should be expanded – but he also thinks New York might have to reexamine the timing of its climate goals. A recent audit of the PSC by Democratic State Comptroller Tom DiNapoli found the regulator isn’t doing enough to help New York and its utilities meet the CLCPA.
“Whether or not we can do it I think is up in the air. And Central Hudson and other utilities get caught in this, and they’re saying, ‘Well, we need to raise rates because of this, because of [CLCPA],'" says Rolison. "I think the conversation really needs to be had.’”
If Central Hudson’s new rate request is approved as filed, the average electric and gas customer will see their delivery bill increase by 30 cents a day, starting July 2025. Jenkins says none of the revenue from this proposal or its latest hike will go toward the utility’s settlement with the PSC.
