Central Hudson Gas & Electric Corp., staff of the New York State Department of Public Service (Public Service Commission) and other parties to the utility’s rate case proceeding have agreed on a three-year plan that would hike rates for gas and electricity but by less than the utility had originally proposed.
Central Hudson serves approximately 315,000 electric customers and 90,000 natural gas customers in a service area stretching from south of Newburgh to the Albany area.
The company says that the rate hikes would allow it to continue making infrastructure investments to help improve reliability, and protect the grid and customers against cyber-attacks.
Central Hudson says the plan, which still must be approved by the Public Service Commission (PSC) would result in an increase of 3.12% in the first-year bills of what it describes as a “typical electric customer” who uses 630 kilowatt hours of electricity per month. A kilowatt hour is one thousand watts of electricity used for one hour. A gas customer who uses an average of 6,400 cubic feet of gas per month would see a total bill increase of 5.19% for the first rate year.
Central Hudson had originally asked for rate hikes that would have produced increases of approximately 4.6% for electricity and 5.8% for natural gas.
The new plan would produce savings for qualifying low-income customers of the utility. Customers who receive the base level Home Energy Assistance Program or other qualifying benefits would see their typical monthly electric bill decrease by approximately 4.2%, or $3.85 per month.
The PSC is expected to rule on the new proposal this fall and may approve, modify, or reject any or all proposed terms.
“We understand the financial challenges that rising bills place on our customers, and we are committed to easing this burden by implementing a rate plan that balances essential system investments with the need to keep costs as low as possible,” said Steph Raymond, Central Hudson’s president and CEO. “Our top priority is to enhance the reliability and efficiency of our services, ensuring that our communities receive the maximum value and support they deserve.”
