Central Hudson CEO steps down

Posted 2/15/23

Charles Freni, the embattled Chief Executive Officer of Central Hudson has heeded the calls for him to step down in the wake of a wide range of consumer complaints stemming from unresolved billing …

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Central Hudson CEO steps down

Posted

Charles Freni, the embattled Chief Executive Officer of Central Hudson has heeded the calls for him to step down in the wake of a wide range of consumer complaints stemming from unresolved billing issues.

On Monday, the Central Hudson Board of Directors announced that Freni was stepping down and moved to appoint Christopher M. Capone as the company’s new President and Chief Executive Officer.

“The Central Hudson Board of Directors believes the time is right for a change of leadership,” said Margarita Dilley, chair of the Central Hudson Gas & Electric Board of Directors. “Chris has a demonstrated history of successfully navigating challenges and leading teams to positive outcomes. We are confident in his ability to move the organization forward and to communicate those results to all stakeholders clearly and consistently.”

Capone’s appointment as President and CEO is effective immediately.

“A key priority will be addressing the frustrations some customers have felt resulting from the implementation of the new customer billing system. We have hired a significant number of additional personnel including contact center employees and other professionals to work on these issues around the clock,” said Capone. “More must be done, and my commitment to you is I will be transparent about the progress we are making. There are more than 1,100 dedicated and talented professionals at our company who work tirelessly to deliver safe and reliable energy to their neighbors in communities throughout the mid-Hudson Valley. As the new CEO, I will work to support them so they in turn can support our customers.”

Freni will remain with Central Hudson to assist with the transition before retiring.

“Charlie has dedicated his professional life to Central Hudson, serving in a wide array of areas over 40 years,” said Dilley. “The Board appreciates Charlie’s leadership and service to the company, to the employees and to the community. We wish him well.”

The change was welcomed by a number of the region’s elected officials.

“The resignation of Fortis/Central Hudson CEO Charles Freni is a welcome first step in changing the management culture that is responsible for the company’s customer billing fiasco, but much more action is needed to unwind the damage done by the utility to Ulster County residents and small businesses,” said Ulster County Executive Jen Metzger in a prepared statement. “Fortis/Central Hudson must take full responsibility for its failures, fix all customer billing errors, end the practice of estimated billing, and return every penny spent on the new customer billing system to ratepayers. I continue to urge the Public Service Commission to move forward with a prudence review and civil penalty assessment to prevent anything like this from happening again.”

Congressman Pat Ryan (D-18) called for Freni’s resignation last week, in a speech on the floor of the House of Representatives’ chamber in Washington.

“I am encouraged that Central Hudson took this first step toward rebuilding public trust – now they must take urgent action to fix their broken systems and repay customers who were wronged,” said Ryan. “I have already been in touch with Mr. Capone and made it clear that I will continue to fight on behalf of Hudson Valley families and businesses until customer complaints have been fully resolved and those who have been harmed are made whole.”

Ryan urged the Public Service Commission to proceed rapidly with a prudence review and civil penalty assessment in light of the complaints.

“I’m pleased to see swift action from Central Hudson following our calls for a leadership change,” said State Senator Michelle Hinchey. “Ratepayers deserve better from their public utilities, and hopefully, this change marks the beginning of the company’s work to repair the financial and emotional harms they’ve caused people across the Hudson Valley. I’ll always do my part to protect ratepayers and ensure we are bringing transparency and accountability to the utility industry.”

Capone started work at Central Hudson in 2003. Previous responsibilities have included executive oversight of accounting, treasury, risk management, internal auditing, enterprise support services and energy resources. Capone holds a bachelor’s degree with honors from Marist College and earned a master’s degree in Business Administration from Columbia University.