Central Hudson files another utility rate increase at 5.3%

AMENIA — After receiving a one-year rate increase for delivering electricity of an estimated 7.85% starting on July 1, Central Hudson applied immediately for a rate increase next year of an additional 5.3%.

On an average electrical bill this would mean, according to their calculations, $9.19 more every month starting in July of 2025. In their August letter requesting the increase, Central Hudson stated, “Maintaining the electric and gas delivery systems through significant capital investment continues to be the primary reason why we must file rate cases.”

Central Hudson bases its estimated dollar increase to monthly consumer cost of $9.19 based on a residential average usage of 630 kilowatt hours per month after an increase this year of $12.65. Other organizations peg average household usage at a much higher amount of 825 to 1025 hours a month which translates to an even larger monthly cost burden.

The one way for a Central Hudson customer to figure out the primary impact of the rate increase granted this year on their own energy bill is to compare July 2024 Delivery Charges and kWh hours to August 2024 charges when the new rate goes into effect. The fixed charge for delivery has gone up $2 from $19.50 to $21.50, an increase of 10.2%. The kWh Delivery charge which accounts for 75% of Central Hudson Delivery charges will rise 21.2% from 10.545 cents to 12.777 cents per kWh. The Supply charges on the bill, 40% of the total, are the market cost of the actual energy and do not figure directly into Central Hudson’s rate case.

Michelle Hinchey, New York State Senator for the 41st District which includes much of northern Dutchess County, Columbia County and the Catskill region, immediately indicated her opposition to the rate hike.

“This is a slap in the face to Hudson Valley families. On the very day our bills went up, Central Hudson is already requesting another rate hike. After being denied their full rate request, this is Central Hudson’s way of trying to fool customers and the PSC into getting what they originally wanted — and slowly over time, maybe even more. Central Hudson consistently fails to be a good community partner and show even a modicum of basic decency or sound business ethics. We will fight this every step of the way.”

When customers see the tangible impact on their own electricity bills, they may want to write to the Public Service Commission and state elected officials. As with any “rate case” there will be public hearings, reports, testimony etc. before the Public Service Commission announces the approved rates in the summer next year. On Aug. 7, the company had already filed 45 documents with the Public Service Commission of New York which considers, and usually reduces, the amount utilities will be charging their customers. As U.S. Congressman Pat Ryan said on WAMC, “the PSC needs to relook at how they’re doing this, because it’s just not working.”