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Central Hudson’s proposed rate hikes face fierce pushback

by Staff
May 14, 2025
in News
1
Central Hudson wants a dollar a day more from its customers in the Hudson Valley 

Central Hudson's offices in Lake Katrine. (Photo by Dion Ogust)

A tentative deal between Central Hudson Gas & Electric Corp. and regulators would raise electric and gas delivery rates each year for three years, drawing sharp criticism from public officials and advocates who say the plan prioritizes corporate profits over struggling ratepayers.

If approved by the Public Service Commission (PSC), average electric bills would rise 3.12% ($5.43/month) in year one, 3.4% ($6.25) in year two, and 3.7% ($6.62) in year three. Gas bills would increase 5.19% ($7.73), 7.2% ($11.27), and 7.37% ($12.37) respectively.

These hikes nearly double Central Hudson’s original proposal and come on the heels of 2023 increases of 7.85% for electricity and 9.19% for gas.

Central Hudson says the plan balances infrastructure needs with customer protections, including continued bill discounts for low-income households, new incentives to boost affordability program enrollment, weather-based shutoff protections, and Spanish-language billing by 2025. Some HEAP recipients could even see a 4.2% decrease in monthly bills.

Still, backlash has been strong. U.S. Rep. Pat Ryan (D-Gardiner) called the plan “adding insult to injury” amid a cost-of-living crisis. Rep. Josh Riley (D-Ithaca) labeled it “fucking absurd.”

State lawmakers across party lines criticized the deal’s high return on equity. Assembly member Sarahana Shrestha — who advocates for Central Hudson to be taken over as a publicly owned utility — said the hikes benefits shareholders over customers. Shrestha and Sen. Michelle Hinchey pushed for income-based billing caps, while Sen. Peter Oberacker said the PSC is failing its watchdog role.

The Public Utility Law Project (PULP) remained neutral, acknowledging both gains for vulnerable households and ongoing affordability concerns.

The PSC is expected to rule on the proposal this fall.

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- Geddy Sveikauskas, Publisher

Staff

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