Beginning August 1, approximately 315,000 electricity and 90,000 natural-gas Central Hudson customers will see their rates to keep the lights on and the cooking fires burning climb.
The Public Service Commission (PSC) agreed on Thursday, July 18 to an approximate 16.5 percent increase in the delivery costs of electricity and a 20 percent increase in the delivery costs of gas. The hikes are expected to increase the total revenues for the Canadian-owned utility by 5.5 percent for electricity and 7.3 percent for gas.
PSC spokesperson James Denn characterized the increases as substantially lower than what the utility had initially sought.
Central Hudson had asked for an approximately 16.4 percent increase in estimated total revenues generated by sales of electricity ($139.5 million more per day) and a 19 percent increase from sales of natural gas ($41.5 million per day).
State assemblyperson Sarahana Shrestha has a bone to pick with those numbers. Focusing on the percentage of increase to the estimated total revenues, Shrestha said, didn’t reflect the whole story.
“The PSC is not regulating supply rates for Central Hudson,” said Shrestha, “only delivery rates. But the gas or electricity bill also has supply cost, so the numbers we are given are estimated total bill increases. By using the delivery rate increases we see the percentage of increase actually requested.”
Central Hudson asked for a 31.9 percent increase in base delivery revenues generated from delivery of electricity and 29.2 percent generated from delivery of gas.
Quizzing shoppers outside the Hannaford grocery store in the Kingston Plaza about how the increases might affect the base-line economics of their households elicited responses of confusion and/or scorn.
“I don’t even understand what you’re saying,” said one man who identified himself as Toby T., after listening to a description of the difference between base delivery costs and estimated total revenues. “I’m going to have to pay more, that’s what you’re saying, right? That’s all I gotta know. I just paid $10 for a jar of mayonnaise.”
Central Hudson’s holding company Fortis, reported $12 billion in revenues in 2023, a milestone year for the company. According to utility president and CEO David Hutchens, “We celebrated 50 years of increases in annual dividends paid to our shareholders.”
Joe Hally, in charge of regulatory affairs for Central Hudson, asserted that the rate increases would allow Central Hudson to make critical investments in its energy system “so we can continue to safely serve our customers while also supporting New York State climate laws and reliability mandates.”
PSC commission chair Rory M. Christian referred to climate goals. “The forward-looking plan we have adopted benefits customers and includes provisions that further important state and commission objectives,” he said.
While acknowledging the PSC’s lowering of the rate increases, Ulster County executive Jen Metzger shared her concerns about the effects of the added costs to struggling county residents.
“I strongly encourage income-eligible residents to take advantage of the Nyserda EmPower program, which provides no-cost and low-cost building and appliance upgrades to homes for renters and homeowners,” she said.
According to spokesperson for Central Hudson, Joe Jenkins, the typical residential electric customer can anticipate an increase to their electricity bill of approximately $12.65 per month, with another $12.25 added to their gas bill.
“This is not the outcome we wanted, and it’s not what Hudson Valley residents deserve after years of suffering financial hardship and distress from Central Hudson’s corporate mismanagement,” said state senator Michelle Hinchey. “As our region grapples with utility providers more interested in prioritizing profits over the people they serve, it’s clear we have to continue fighting for legislation that holds these companies accountable to our communities.”
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