Central Hudson Wants To Raise Prices By Nearly 20%

Central Hudson wants to raise its gas and electric rates by double digits.

On Monday, Central Hudson Gas & Electric Corporation announced its proposal for a new rate plan to the New York Public Service Commission.

Central Hudson Wants To Raise Prices

The utility is requesting that the New York Public Service Commission approve a 19-percent increase for gas and a 16-percent hike for electric

"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 – which are occurring more frequently," Vice President of Regulatory Affairs for Central Hudson Joe Hally said. "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."

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Central Hudson believes the company must raise prices to "meet the evolving needs of its customers and comply with New York’s climate law, the Climate Leadership and Community Protection Act."

Officials say the increase is necessary to "upgrade outdated equipment and infrastructure that is past the end of its useful life and ensure continued safe and reliable utility operations and support an evolving workforce and new technology to meet the needs of the 21st-century grid."

Plan Calls for Significant Infrastructure Investment

Officials add they must upgrade aging infrastructure stating at least 20 percent of existing electric infrastructure is beyond its expected useful life.

The company is also blaming climate change and they need to incorporate greener technology.

“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 added.

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The rate plan proposal will undergo a lengthy review process. If approved, the rate hike will start in July 2024.