PSC approves $62.59M settlement with Central Hudson

The New York State Public Service Commission (PSC) has approved a $62.59 million settlement with Central Hudson Gas & Electric over its failed customer information and billing system that was used to collect money from Hudson Valley customers. In addition, the settlement would add up to $2 million more to the amount Central Hudson has to pay if the company fails to deliver monthly meter readings on schedule.

The agreement requires shareholders to pay the full cost of remedial actions taken to fix the billing system, as well as costs associated with a move to regular monthly meter readings and to implement recommendations made by an independent monitor.  The settlement agreement resolves the PSC’s ongoing investigation into past billing system failures by the company.

“As a result of our investigation, the company has made and will continue to take corrective actions to resolve billing problems that have caused many customers great stress and confusion,” said PSC Chair Rory M. Christian.

The agreement requires Central Hudson shareholders to pay the more than $35.3 million spent over the last two and a half years by the company to remedy problems with the company’s customer information and billing system, rather than allowing Central Hudson to pass those costs on to customers. In addition, shareholders will pay $4 million to directly benefit customers, with the details to be determined by the PSC.

Central Hudson serves approximately 309,000 electric customers and 84,000 natural gas customers in the Mid-Hudson River Valley.

Ulster County Executive Jen Metzger said the settlement correctly holds Central Hudson shareholders and top management responsible for “the harm inflicted on thousands of residents and small businesses by mismanaging billing and cutting costs for the sake of profit.”

Central Hudson issued a statement that said, in part:

“Central Hudson has worked tirelessly to strengthen transparency and to rectify the billing issues our customers experienced due to the implementation of a new billing system. We’ve hired over 100 new professionals to better assist customers, hosted dozens of community meetings to address concerns directly, ensured affected customers were fully compensated, and rolled out monthly meter readings to largely eliminate bill estimates. As the billing system’s performance has improved and as we have grown our team of customer service professionals, customer service metrics have improved considerably.

“The independent monitor provided a series of recommendations, which we committed to implementing, to ensure Central Hudson’s readiness for future system integrations and any unforeseen challenges.

“Central Hudson appreciates the ongoing commitment of all our employees, both union and non-union. We will deliver the level of performance and service our customers expect and deserve.”