Central Hudson is promoting what should be a drastic price decrease for many customers.

On Tuesday, Central Hudson announced the supply price for natural gas fell 64 cents per 100 cubic feet (ccf), down from 97 cents per ccf in April.

"This represents a 34 percent decrease in the supply price and is largely attributable to efforts made by Central Hudson to mitigate bill impacts that result from energy market price volatility. Supply prices stated on bills and overall bill impacts will vary for individual customers depending on their billing cycle and energy usage," Central Hudson said in a press release. "As the result of ongoing discussions with state regulators over the persistent upward market pressures on energy supply prices, Central Hudson is further deferring gas supply costs from this past winter in an effort to help reduce bill impacts to customers."

Costs from natural gas spot purchases earlier this year were already being deferred over several months to help reduce winter bill impacts, officials say. These spot purchases were necessary during the periods of extreme cold this winter to meet the heating needs of residents and businesses, according to Central Hudson.

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"With this change, the remaining costs of these spot purchases will now be deferred and spread throughout the 2023 calendar year to provide immediate relief during this period of high energy costs and allow additional time for local economic recovery. Spreading the costs over a longer time period will further reduce bill impacts. Central Hudson is exploring the viability of a similar approach for electricity costs if another significant spike in supply prices occurs in the future," Central Hudson stated.

However, regional and global factors continue to place significant upward pressure on natural gas prices, according to Central Hudson.

"The base price for natural gas supply in May increased by 12 percent over April’s base price, but deferral of the costs associated with the previous spot purchases will effectively reduce the natural gas supply price for the coming month by 34 percent," Central Hudson wrote in a press release.

credit: Central Hudson
credit: Central Hudson
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The prices for other utility bill components, including taxes and delivery charges, are regulated by the State of New York and are stable. Utility bills reflect both the price of energy and usage.

In Mid-April Central Hudson warned regional and global market forces continued to cause electricity and natural gas prices to increase in April.

Higher prices were attributed to a recovering economy, energy supply constraints, strong energy demands, and global events, according to Central Hudson.

Central Hudson provided the following photos on electric and natural gas supply prices to try and explain rising costs.

In February, Hudson Valley Post reported Central Hudson warned customers their bills are going to increase.

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Central Hudson warned bills for natural gas will increase by about 19 percent, electric bills will increase by 46 percent, and about 29 percent for combination electric and natural gas bills.

Central Hudson said the increase is due to increases in supply prices for both electricity and natural gas as the region navigates a colder than average winter and as global energy factors come into play, prompting an increase in the demand and price for energy.

Supply prices are market-based and not marked up by Central Hudson, officials say.

One Dutchess County resident sent us her bill where she owned over $17,000 for one month.

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Bhunter/tsm
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"These bill increases are temporary and may vary for individual customers depending on energy usage and their billing cycle," Central Hudson said in February.

However, Central Hudson later said, "higher costs will be sustained through much of 2022."

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