The utility that serves much of the Hudson Valley, Central Hudson Gas & Electric Corporation wants to raise residential electric rates by approximately 16% on average and natural gas rates by an average of 19%. It has filed a new rate plan with the New York Public Service Commission (PSC), which will have to decide whether to allow the requested increases. The current rate plan will end in June of next year.
Central Hudson reported net income for the three months ended March 31, 2023, of $23.5 million. For the year ended December 31, 2022, it reported revenues of $1.02 billion and net income of $79.1 million.
“We believe that this proposed rate plan is essential to address our infrastructure needs, recover from the impacts of Covid-19, and ensure that we can respond effectively to extreme weather events,” said Joe Hally, Central Hudson’s vice president of regulatory affairs. “By making these necessary investments, we will not only maintain the safety and reliability of our utility operations but also comply with New York state’s nation-leading clean energy laws, protect the environment, and improve customer service through the adoption of new technologies.”
Central Hudson said that approximately 20% of its existing electric infrastructure is beyond its expected useful life and needs to be replaced and additional money is needed in order to do that. The company also said that it needs to spend money for new technology to facilitate greater interconnection of clean, renewable resources and support the adoption of energy conservation and use of electric vehicles and heat pumps.
“As climate change continues to manifest in the form of severe storms and extreme weather events, Central Hudson recognizes the importance of being well prepared and responsive. The proposed rate plan will enable us to invest in advanced technologies and equipment necessary to enhance our storm preparation and response capabilities,” Hally said.
Central Hudson said that it has been working to help customers switch to heat pumps to reduce greenhouse gas emissions. It said that since 2009 is has been instrumental in bringing to its service area nearly 21,000 heat pumps for heating and cooling and nearly 3,000 heat pump water heaters. It said its various programs have reduced energy demands by the amount of electricity that can power 60,000 homes and avoided the release of about 1.2 billion pounds of greenhouse gases.
Central Hudson said that it is preparing to transition from bimonthly to monthly meter readings and plans to increase its workforce by 20%. The company said that it plans to increase its program of tree trimming to help protect power lines during storms. Central Hudson said it needs the rate increases to help offset the effects of inflation in addition to paying for planned improvements.
