Ceasefires in Gaza, affordable housing, whether at least one renter should serve on the planning board, there’s hardly a hot button issue that the all-Democrat Kingston Common Council doesn’t struggle over finding consensus. But the decision to take their electric and gas utility public isn’t one of them.
On Tuesday, February 4, the full council called unanimously upon the New York State Legislature and the governor to sign legislation to acquire the privately owned gas and electric provider, Central Hudson, and turn it into a publicly-owned energy utility.
Crafted by state senator Michelle Hinchey and assemblymember Sarahana Shrestha, the bill would create the Hudson Valley Power Authority. The theory is that by excising the profit motive from the utility’s day-to-day operations, residents will reap the benefits of lower costs and a more responsive utility. The jobs won’t be going anywhere, just the ownership.
Central Hudson residents in Ulster County pay electricity rates 90 percent higher per kilowatt hour than the national average — 31.23 cents per kilowatt hour. Customers have long complained of uneven service and inaccurate billing practices by the utility.
The Town of Massena, which has taken its utility public, pays 7.27 cents per kilowatt hour. Massena residents see an average bill $94.55 per month, compared to the average bill in Ulster County of $224.95 per month.
Fortis Inc., a utility holding company based in Labrador, bought Central Hudson in 2012. Owning regulated utilities in Canada, the U.S. and the Caribbean, Fortis owns estimated assets at $70 billion, while projecting dividend growth over the next five years for its shareholders at four to six percent. Fortis reported $12 billion in revenue in 2023.
Customer angst came to a head in late 2021 following the botched implementation of a new customer information and billing system.
A bombshell report released a little over a year later detailed gross mismanagement. Longtime president Charles Freni was replaced soon after by Christopher M. Capone. A year after that, Stephanie Raymond, the current president, was brought in.
Central Hudson has continued regularly to advocate for rate increases.
If the members of the public speaking before the council last night were any indicator, animus remains high. Before the vote, majority leader Rennie Scott-Childress castigated the utility as “robber barons.” He also alleged they had “demonstrated a wanton disregard for the welfare of Hudson Valley residents.”
The language of the Hinchey-Shrestha bill the council members voted to support provides for the election of nine trustees appointed from within the community, one of whom will be the business manager of the International Brotherhood of Electrical Workers. It specifies that all jobs operating the distribution system will be union jobs, eligible first to those prospective employees who have lost their jobs or are losing their jobs in the non-renewable energy sector. And it states plainly that authority will not be operated to make a profit. Revenues which accrue will end up invested in the public good.
Low rates, reliable service, correct and easy to understand bills, clean energy, community benefits, strong labor protections, and environmental justice — the council appears to believe breaking the monopoly Central Hudson holds is a panacea.
Todd Diorio, president of the Hudson Valley Building & Construction Trades Council, sees Kingston’s option as something entirely different.
“Honestly, I think it’s a stupid piece of legislation that is going absolutely nowhere,” Diorio said. “And I think it’s just a political ploy by two friends of ours — senator Hinchey and the assemblywoman up there [Sarahana Shrestha], they’re both labor supporters, but you know and I know there’s a lot of people bitching about Central Hudson billings and everything else. But if you have, you know, 2000 constituents screaming about Central Hudson, you know they gotta do something.”
Diorio released a separate statement, noting that “a government-administered electric and gas utility means fewer jobs for local workers and a less reliable system for everyone.”
Reached for comment, Ward 6 alder Bob Dennison, a retired chief engineer for the state Department of Transportation, weighed in on fears raised by some union members directly.
“The proposed bill gives organized labor more power than they have today,” he said. “They get a seat on the board…they retain their ability to negotiate and strike. I don’t see what they lose. There should be more resources available to them without the burden of profit and the advantage of less costly borrowing ability. Maybe there is something I don’t see but I like the idea of a [publicly owned] utility. ”
Alder Michael Tierney offered another reason for supporting the Hinchey-Shrestha bill. “If we own our own power,” he said, “we are more resilient from the rise of fascism in Washington.”
Joe Jenkins, a spokesman for Central Hudson, put the loss of tax revenues which would be brought about by taking the utility public at nearly $60 million annually.
“Tax revenue that funds our schools and town budgets,” said Jenkins, “A significant financial burden on taxpayers, a government takeover would require a costly, taxpayer-funded acquisition of Central Hudson, meaning residents would ultimately foot the bill. Unfortunately, some elected officials are ignoring these voices and downplaying the real costs and risks.”
Jenkins said that the Ulster County Regional Chamber of Commerce had expressed its official opposition to this legislation. Chamber of Commerce president Ward Todd did not immediately respond to a request for comment.
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