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Communities for Local Power (CLP) has formally petitioned the PSC to deny Central Hudson the rate increase that is scheduled for July 1 until the multiple problems the utility faces are cleared up and it has completed any mandatory actions in response.
CLP participates in Central Hudson rate cases in order to keep our communities’ rates down and try to make sure Central Hudson meets New York State’s climate goals. In the most recent rate case, which ended in November, 2021, we and our allies helped win a rare electricity rate decrease of .2% for 2021-22, while gas rates went up 1.9%. But rate cases over three years, and on July 1, 2022, Central Hudson is scheduled to get a rate increase of 1.3% for electricity delivery, plus another rate increase of 1.6% for gas delivery. In November 2021, when the rate case ended, Central Hudson estimated that for a typical customer the 2022 increases would mean increases of $1.72 per month for electric and $2.17 per month for gas.
These estimates have proved wildly inaccurate, in light of the current enormous bill surge and the billing nightmares many Central Hudson customers have experienced. Bills have skyrocketed. Central Hudson’s dependence on natural gas-generated electricity, which makes up 44% of its supply, is a part of the problem, but utilities are expected to hedge their purchases to protect against sudden cost increases like the ones we are seeing. Central Hudson’s new billing system sent wildly fluctuating, incomprehensible bills to thousands of customers – the PSC site that was set up to receive customers’ complaints already holds 3466 of them.
Environmental disclosure, January 1 – December 31, 2020, is the most recent report available on the company’s website.
These multiple failures have led to three investigations and a proposed law aimed at Central Hudson and other New York utilities:
The Senate Committee on Investigations & Government Operations is investigating utility companies' surge pricing and billing practices and power producers, including Central Hudson. Senator James Skoufis (D - Hudson Valley), who chairs the Committee and launched the investigation, represents customers in Central Hudson territory.
The Public Service Commission (PSC) is conducting its own audit of Central Hudson, focusing on information systems planning and implementation – one cause of the billing mess – and other problems (case 21-M-041).
The PSC is conducting a second investigation into Central Hudson’s response to ice storm Norman, which left most of Ulster County without power for up to four days in February (case 22-00497).
Senator Michelle Hinchey (D, WF - Saugerties) has introduced a bill (S7579, A8806), to investigate the estimated billing practices of Central Hudson and other New York utilities.
Given its egregious failures on so many fronts, does Central Hudson deserve a rate increase? We say no way.