NY PSC approves limited rate hike for Central Hudson. What does this mean for customers?

James Skoufis

Originally published in WAMC on .
The New York State Public Service Commission voted to approve a limited rate hike for Central Hudson Gas & Electric on Thursday.

The New York State Public Service Commission has approved a controversial rate hike for Central Hudson Gas & Electric — but not before dramatically cutting it first.

The utility initially proposed a rate plan that would increase its revenue by $181 million, hiking delivery rates for electric and gas by 16 and 19 percent, respectively. Instead, the PSC has approved a roughly $79 million rate plan, with a 5.5 percent hike for electric delivery, and a 7.3 percent hike for gas delivery.

In sharing his thoughts on the case, Commissioner Rory Christian addressed a group protesting Central Hudson from the back of the room.

“I’m certain some of you view the rate case as a reward, giving credit for good behavior. That is not the purpose of a rate case," said Christian. "The purpose of a rate case is to ensure the reliability of the system.”

Central Hudson is still trying to rebuild trust with customers and lawmakers after its transition to a new billing system in 2021 led to the inaccurate billing of hundreds of customers. In June, the utility agreed to absorb the costs of the fiasco in a $65 million settlement with the PSC. Earlier this year, State Senator Michelle Hinchey and Assemblymember Sarahana Shrestha, both Democrats, went as far as to introduce a bill that would allow the state to launch a public takeover of Central Hudson. It didn’t pass.

In public hearings on the rate case, Democratic State Senator James Skoufis called Central Hudson’s request an “insult,” and accused the utility of employing a common negotiation tactic: requesting exorbitantly high rates before settling for the number it really wants. He urged the PSC to reject Central Hudson’s request outright.

"No elected official, no one in the public [is going to say], 'Oh, thank you Public Service Commission, for only limiting [the rate increase] to 'X,'" he warned. "They deserve not one red cent of a rate hike.”

So, what does this mean for customers? Starting in August and running through June 2025, Central Hudson says the typical electric customer will see a total bill increase of $12.65 a month. The typical gas customer, meanwhile, will see an increase of $12.25 a month.

Central Hudson has said it needs more revenue to improve its infrastructure, comply with New York’s climate laws, upgrade customer service, and improve its storm response. Spokesman Joe Jenkins says the limited rate hike will still allow the utility to hire and replace infrastructure to meet its legal obligations, but it will need to cut some of its loftier goals.

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