Judges Back Central Hudson Hikes Highlands Current Audio Stories

Utility criticized for seeking higher delivery rates
Two administrative judges have recommended higher electricity and gas delivery rates for Central Hudson but rejected the increases the utility sought and demands by elected officials, advocates and customers to deny any hike.
The decision, released May 1, follows nearly a year of testimony that began last summer when Central Hudson said that it would seek state approval to raise revenue for electricity delivery by $139.5 million and for gas by $41.5 million during 2024-2025.
Under that plan, the utility's customers, including 6,800 households and businesses in Beacon and 5,200 in Cold Spring, Nelsonville, Philipstown and Kent, would have seen their monthly bills rise by an average of $30 for each service.
The increases will be lower under the judges' recommendation, which, if approved by the state Public Service Commission, grants Central Hudson revenue increases of $75 million for electricity and $29.6 million for gas, according to an analysis of the decision by the Public Utility Law Project.
That's less than the $128.7 million in new electricity revenue and $47.2 million in gas increases requested by Central Hudson in a revised proposal but more than the $65.5 million increase for electricity and $25.1 million for gas sought by the state Department of Public Service (DPS).
Even the judge's lower amounts are "way too high," said Jonathan Jacobson, a Democrat whose state Assembly district includes Beacon. "The original request was merely a bargaining chip and was never a serious proposal, so this recommendation is not a win for consumers."
How the increases affect monthly bills will not be known until May 21, the deadline for Central Hudson and DPS to submit those figures.
Central Hudson's basic delivery charge for electricity is 10.5 cents per kilowatt-hour; for gas, it's $24.50 for the first 200 cubic feet, $1.36 per hundred cubic feet (Ccf) for the next 4,800 and 95 cents per Ccf for additional amounts.
But the decision noted that the "general sentiment" expressed at public hearings "was that Central Hudson is not providing basic service and should not be rewarded for its poor performance." The utility is being investigated over billing problems that began in 2021.
Rep. Pat Ryan, whose congressional district includes Beacon, described the recommendation as "outrageous."
"I'm again calling on the PSC to reject this exorbitant rate increase and hold public hearings," said Ryan. "We need real accountability and relief, not another corporate handout."
Central Hudson has said that the additional revenue is essential to replace aging transmission and gas lines, connect solar and wind projects to its system and add personnel and equipment to restore power after outages caused by extreme storms, which have become more frequent.
The company also said it planned to expand financial-assistance programs for low-income customers and increase its workforce by 20 percent.
Joe Jenkins, a Central Hudson representative, said on Tuesday (May 7) that the company is "reviewing the decision in its entirety and will provide additional information by the end of the month."
Overshadowing the process is continued anger over widespread problems that began when the company switched in 2021 to an $88 million customer-service system. Programming errors caused delays in issuing statements that lasted more than three months for some customers and overcharges that affected more than 8,000.
Central Hudson agreed to pay for an independent monitor to verify the utility's progress in correcting the sources of its billing mistakes.
The company also agreed to end its practice of estimating every other monthly bill and transition to reading meters monthly. The change launched with customers in Orange and Ulster counties and is scheduled to take effect in Beacon and Philipstown this spring.
Central Hudson, which during the pandemic shutdown paused efforts to collect past-due bills, announced April 19 it will