State Cuts Central Hudson Rate Requests

The New York State Public Service Commission last week adopted a joint proposal establishing three-year electric and gas rate plans for Central Hudson Gas & Electric Corporation, significantly reducing the company’s request for total electric delivery revenues by more than $17.5 million (a 37 percent decrease from the initial request) and total gas delivery revenues by nearly $800,000 (a 5 percent decrease from the initial request) in the first year.

The adopted joint proposal will result in an electric rate increase on a total bill basis for the average residential customer of 3.47 percent in the first year, 3.47 percent in the second year, and 3.23 percent in the third year.

For an average residential gas customer, the increase will be 5.3 percent in the first year, 7.19 percent in the second year, and 7.27 percent in the third year.

The adopted joint proposal includes provisions to increase customer participation in the Energy Affordability Program, support for economic development, enhanced consumer protections, and provisions to strengthen safety and reliability of the electric and gas systems.

The joint proposal provides a moderated electric revenue requirement increase of $29.7 million, a 5.5 percent delivery and 2.9 percent total revenue increase in the first year; $31.6 million, a 5.3 percent delivery and 2.9 percent total revenue increase in year two; and $34.5 million, a 5.3 percent delivery and a 3 percent total revenue increase in year three.

The joint proposal would result in moderated gas delivery revenue requirement increases of $14.5 million, an 8.8 percent delivery and a 5.4 percent total revenue increase in the first year; $15.9 million, an 8.7 percent delivery and 5.6 percent total revenue increase in the second year; and $17.5 million, a 9 percent delivery and a 5.8 percent total revenue increase in the third year.

The new rate year started July 1 and the joint proposal covers a three-year term through June 30, 2028.

“The adopted joint proposal meets the legal requirements that the company continue to provide safe and adequate service at just and reasonable rates,” said PSC Chairperson Rory Christian. “The three-year rate plan is in the public interest. The forward-looking plan we have adopted benefits customers and includes provisions that further important state and commission objectives, while keeping customer affordability first and foremost in mind.”

Central Hudson, which provides service to 315,000 electric customers and 90,000 gas customers in the mid-Hudson Valley, originally sought a base delivery revenue increase for the 12 months ending June 30, 2026, of $47.2 million (8.8 percent delivery or 4.6 percent total revenue) and $15.3 million (9.4 percent delivery or 5.8 percent total revenue) for electric and gas, respectively.

Gov. Kathy Hochul has denounced the rate increase.

“While I appreciate that the New York Public Service Commission worked to significantly lower the outrageously high initial rate proposals, it’s still not enough,” she said. “I have been crystal clear that utilities must make ratepayer affordability the priority. Since taking office, my administration has prioritized energy affordability, particularly for our most vulnerable, and we need the utilities to take it seriously as well. That means at a time when worried New Yorkers are being forced to tighten their budgets, all utilities must follow suit.”