The cost of energy in the Mid-Hudson Valley just went up… again.
The New York State Public Service Commission (PSC) has approved a three-year rate plan for Central Hudson that will raise electric and gas delivery rates beginning September 1, 2025. Although the utility originally requested steeper increases, the final approved plan reduces those proposed hikes significantly, by more than $17.5 million for electricity and nearly $800,000 for gas in the first year. The decision follows months of negotiations and public input, aiming to balance affordability with the need for system improvements.
For Central Hudson electric customers, delivery rates will rise by 5.5% in the first year, 5.3% in the second, and again by 5.3% in the third. On average, this translates to monthly bill increases of about $6.04, $6.25, and $6.01, respectively. Gas customers will see even steeper hikes: 6.73% ($7.89), 9.03% ($11.27), and 8.97% ($12.21) across the same time span. By the third year, the combined impact on both gas and electric bills could total nearly $50 more per month for an average customer.
The rate plan also includes provisions aimed at customer support and system reliability. These include expanded enrollment in the Energy Affordability Program, consumer protections, economic development initiatives, and investments to strengthen infrastructure.
Officials emphasized that rejecting the plan could have resulted in even higher rate increases. The PSC said it considered roughly 200 public comments and conducted multiple hearings before approving the agreement. Central Hudson is a subsidiary of multi-billion-dollar Canadian corporation Fortis.
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