NY PSC Slashes Central Hudson's Requested Rate Hike

The New York State Public Service Commission issued a decision that establishes new rates for Central Hudson Gas & Electric are substantially lower than those sought by the company. They will go into effect Aug. 1 and run through June 30, 2025.

Central Hudson delivers natural gas and electricity in a service territory that extends from the suburbs of metropolitan New York City north to the Capital Region. Central Hudson is a regulated transmission and distribution utility serving approximately 309,000 electric customers and 84,000 natural gas customers in a service territory of New York State’s Mid-Hudson River Valley.

According to the PSC, Central Hudson’s initial filing sought a $139.5 million electric revenue increase and a $41.5 million gas revenue increase. Instead of granting the full amount, the Commission approved an electric delivery revenue increase of $58 million (5.5 percent increase in total revenues) and a gas delivery revenue increase of $21.2 million (7.3 percent increase in total revenues). The total increase approved for electric and gas companies was $79.3 million, well under the $181 million originally sought.

If the company’s original proposal was granted, Cen Hud’s total revenues would have increased by 13.3 percent for electric and 14.2 percent for gas.

The significant reduction in the rate increase requested by the company was made possible by the transparent and thorough review of all cost drivers by staff and other parties, PSC officials said. In developing this decision, the Commission reviewed a detailed record that included the testimony of parties, the judges’ recommended decision, and well over 400 public comments received, both directly and at the eight public statement hearings that were held.

Notably, the Commission’s decision does not set aside any ratepayer money for executive variable compensation because Central Hudson’s senior management has not set an expectation of continuous improvement in the utility’s performance over the period in question, PSC officials said.

Another highlight of today’s decision is that Central Hudson’s shareholders will pay all costs to implement monthly meter readings.

“This new, one year plan will allow Central Hudson to make critical investments in the energy system so we can continue to safely serve our customers while also supporting New York State climate laws and reliability mandates,” said Joe Hally, Vice President of Regulatory affairs. “We appreciate the work and dedication of all parties who helped the Commissioners arrive at this decision.”

The order concludes an extensive 12-month vetting process that included eight virtual and in-person public statement hearings and testimony made before administrative law judges provided by Central Hudson subject matter experts, members of Department of Public Service staff and registered parties. Based upon the hearings and testimony, the administrative law judges issued a recommended decision to the Public Service Commissioners, who issued their final ruling July 18.

“The forward-looking plan we have adopted benefits customers and includes provisions that further important State and Commission objectives,” said Commission Chair Rory M. Christian. “With today’s decision, Central Hudson is required to pursue important energy-efficiency initiatives among other progressive policies, to advance the goals of New York State’s nation-leading climate change targets, while mitigating bill impacts for low-income customers, as part of New York’s energy affordability policy.”

The decision disappointed Rep. Pat Ryan.

“From day one, I’ve been fighting to lower costs and hold Central Hudson accountable. With Hudson Valley families feeling the economic pressure, allowing any rate increase is completely unacceptable,” Ryan said in a statement. “We’re all still reeling from years of systemic failure by Central Hudson – while their profits continue to grow at our expense. We can’t back down.”

After Ryan’s calls for an investigation into Central Hudson’s billing practices, he received more than 11,000 formal complaints. A New York State Department of Public Service report revealed that the company’s billing system was riddled with programming errors. This led to nearly 5,000 customers not receiving their bills, 8,000 customers being overcharged, and more than 30,000 customers whose autopay was billed incorrectly, costing them over $16 million.

The decision may be obtained by going to the Commission Documents section of the Commission’s Web site at www.dps.ny.gov and entering Case Numbers 23-E-0418 or 23-G-0419 in the input box labeled "Search for Case/Matter Number". Many libraries offer free Internet access. Commission documents may also be obtained from the Commission’s Files Office, 14th floor, Three Empire State Plaza, Albany, NY 12223 (518-474-2500).