Central Hudson rate hike goes before NY Public Service Commission: What's proposed
An evidentiary hearing before New York's Public Service Commission begins Wednesday to weigh a proposed rate hike by Central Hudson Gas & Electric Corp.
The utility provider has sought an increase of customers' utility rates by 16% for electric and 19% for gas.
The double-digit rate increase was originally announced in July 2023 — the decision would not be put into effect until July 2024 — and would impact nearly 400,000 Hudson Valley residents.
“Hudson Valley families are feeling the pressure of making ends meet," U.S. Rep. Pat Ryan said in a statement Tuesday. "Central Hudson has absolutely no business raising rates, especially after years of systemic failures."
Why Central Hudson is proposing a rate hike
In July 2023, Central Hudson leadership said the new revenue the company would receive, if the rate increase is approved, would go toward utility infrastructure along with hiring of 200 more employees, bringing the total workforce to 1,300.
Joseph Hally, the company’s vice president for regulatory affairs, said at the time the increases are necessary to cover the cost of electrification as the state pivots to a greener grid while replacing poles, power lines and transformers at a time when damaging weather events occur with greater regularity.
Other utility providers across New York have pursued rate increases over the past year.
In June 2023, upstate utility provider New York State Electric and Gas announced it was seeking rate hikes of 22.1% for electric use and 6.1% for gas as part of a settlement with state regulators. Rochester Gas and Electric sought 16% increases for electric use and 10.9% for gas. Con Ed’s rate plan, with total increases of 12% for electric and nearly 19% for gas over three years, was approved by the Public Service Commission in July 2023.
More: Central Hudson is latest utility seeking double-digit rate hikes. What to know
Public officials point to past billing problems
In a news release, Ryan said he backed the Public Service Commission's decision to litigate the Central Hudson rate case and their demand to delay the increase in rates. He has also supported the Public Utility Law Project of New York's motion to deny Central Hudson's request for higher utility rates.
Government leaders in the Hudson Valley, including Ulster County Executive Jen Metzger, had also called for the Public Service Commission to pursue litigation in a letter in October 2023 to deny the rate hike, and pointed to "the egregious issues with billing and customer service that have plagued our communities for more than two years."
A 2022 Public Service Commission investigation revealed more than 8,000 Central Hudson customer accounts were overcharged, with about 1,000 customers double-billed during a new billing system rollout.
More: Report blasts Central Hudson for bungled rollout of $88M billing system
Ryan said he has worked to connect Central Hudson and customers in NY-18, including Orange County and the majority of Dutchess and Ulster counties, to customer representatives to resolve the 2021 billing issues, establish accountability and rebuild trust. An independent monitor was also appointed in July 2023.
The hearing on Wednesday may stretch into multiple business days.
New York State Team reporter Thomas C. Zambito contributed to this report.
Nickie Hayes: 845-863-3518: NHayes@poughkee.gannett.com
This article originally appeared on Poughkeepsie Journal: Central Hudson rate hike hearing: What to know
