Central Hudson Gas & Electric Corp. has proposed another rate increase set to take effect in June 2025, just weeks after the Public Service Commission (PSC) approved a reduced rate hike. The utility’s new filing seeks a 4.6 percent increase in electricity rates and a 5.8 percent increase in natural gas rates.
The PSC recently approved a 5.5 percent increase in electricity delivery rates and a 7.3 percent increase in gas delivery rates, significantly lower than the initially proposed hikes of 16 percent for electricity and 19 percent for gas. Central Hudson cited the need for infrastructure investments to ensure reliable service and compliance with New York’s climate laws as the rationale behind the new proposal.
“We know that a higher utility bill is something no customer wants to see,” said Steph Raymond, the newly appointed president of Central Hudson. “Although we received approval for a one-year rate plan this summer, we will need a new plan ready to take effect when the current plan expires in June 2025.”
The proposed increases aim to fund several initiatives, including preventing outages by replacing aging infrastructure, increasing system capacity to support solar generation and electric vehicle chargers, and bolstering cybersecurity measures. Central Hudson also plans to enhance customer assistance programs and continue funding energy efficiency initiatives.
However, the proposed rate hike has drawn sharp criticism from local officials. State Senator Rob Rolison (R-Poughkeepsie) sent a letter to state Public Service Commission (PSC) Commissioner Rory Christian demanding a free and open public comment.
“New Yorkers are squeezed enough already, and Central Hudson’s proposed rate hike will drive up energy prices at a time when our hardworking residents are still facing unsustainable levels of inflation and sky-high housing costs,” Rolison said. “The Public Service Commission should reject these higher utility bills on working and middle-class ratepayers, period.
“At the very least, Albany’s bureaucrats should heed my legislation (S.7824) and immediately open up a series of public comment opportunities across Central Hudson’s coverage area in 2024. Our office has fielded literally hundreds of casework concerns related to energy billing and affordability, including the current electricity and natural gas hikes Central Hudson won from the PSC. Central Hudson can reverse this damage while there is still time and cancel its proposed energy price hikes today.”
Assemblyman Jonathan Jacobson (D-Newburgh) echoed Rolison’s sentiments, labeling the request “outrageous” and suggesting it demonstrates the company’s disconnect from its customers.
“This new increase request shows once again that Central Hudson is out of touch with its customers,” Jacobson said. “This new request will spur additional utility reform legislation to be passed in Albany.”
If approved, the new rates would result in an approximate daily increase of 30 cents for residential electric bills and 29 cents for natural gas bills. The proposal will undergo an 11-month review process, including opportunities for public comment, before any changes are finalized.