Central Hudson Gas & Electric reports that energy analysts see continued volatility in energy prices against the background of dramatic rises and falls in recent months. The utility said that the price it pays on the energy market for electricity and gas likely will remain elevated this year due to the recovering economy, energy supply constraints, strong energy demands and global events such as the war in Ukraine.
Central Hudson, based in Poughkeepsie, says that the residential price for electricity has fallen 46% from February to March. The company says that it charges consumers only what it pays to buy the electricity. While the price had been 21.6 cents per kilowatt hour (kWh) in February, as of March 11 it was down to 11.6 cents per kWh. A kilowatt hour of electricity is one thousand watts used for one hour.
Natural gas prices went in the opposite direction from February to March. While gas had been 73.9 cents per hundred cubic feet (ccf) in February, as of March 1 it had risen to 91.6 cents per ccf, a 24% increase.
“Higher energy costs harm our customers and the communities we serve,” according to Charles A. Freni, president and CEO of Central Hudson. “The energy resources produced in the United States now supply both domestic and international needs. We must ensure that state and federal policies allow for the expansion of critical energy infrastructure of all types to ensure robust and diverse energy supplies at stable prices, particularly as we transition to lower carbon resources.”
Central Hudson points out that electricity and natural gas are provided by independent generators and suppliers and that other utility bill components, including taxes and delivery charges, are regulated and stable. It also notes that the weather helps determine the demand and usage for electricity and natural gas. Central Hudson says it hedges to help stabilize natural gas and electric supply costs against fluctuating market prices. Hedging includes contracting for a portion of energy at fixed prices and purchasing gas at pre-season prices and placing it into storage.
