News Analysis: Central Hudson rates projected to increase

Central Hudson has filed with the New York State Public Service Commission for a three-year rate increase to deliver electricity and in May 2025 the PSC Staff and Central Hudson reached an agreement which has been passed along to the commissioners for their approval as the final step in the “rate case.”

The complex pages-long proposal does not involve the actual cost of producing electricity, but the expense of the infrastructure to deliver it including maintaining the electricity grid, reading electric meters, billing customers, etc.

The projected increases over the next three years will increase the Basic Service Charge, a flat amount regardless of the amount of electricity used, by 21% from $21.50 currently to $26 in year three.

The Delivery Service Charge, which is the largest part of the delivery portion of the bill, is scheduled to increase 17% over the three-year period. On what Central Hudson deems average usage of 630 kilowatt-hours per month this would add approximately $8.00 to the average bill in year one — that’s before the cost of energy and other miscellaneous charges.

In a typical month these delivery charges make up over 50% of the total bill with the remainder calculated based on the market rate of the actual energy that Central Hudson or other companies may provide.

Central Hudson’s “Net Metering” plan for homes with solar panels still charges the Basic service charge and a Customer Benefit charge even if no electricity is consumed with no credit for extra energy pumped back into the grid.

Current basic service charges for Central Hudson customers compared to NYSEG, which supplies electricity to customers in the lower Hudson Valley including Amenia, are now 13% higher and delivery charges are 31% greater than NYSEG’s before the rate increase.

No one knows when or how the seven commissioners who are appointed by the governor will rule but public comment remains open until the end of the July. Anyone can post their views publicly and read other comments on the website maintained by the PSC: documents.dps.ny.gov/public/MatterManagement/CaseMaster.aspx?MatterCaseNo=24-E-0461.

Or you could write to your county legislator, State Senator Michelle Hinchey, Congressman Pat Ryan or Sue Serino, Dutchess County Executive. In a May press release Serino called the proposed rate increases, “Unfair, unbalanced, and out of step with reality.” Congressman Pat Ryan has called the increases “adding insult to injury.”

Opposition briefs filed with the PSC focus on affordability with nearly 16% of Central Hudson’s 315,000 residential customers already behind on utility payments — significantly higher than Con Edison or NYSEG customers according to Sarahana Shrestha, who represents Kingston in the New York State Assembly. Annual 4% salary increases for nonunion and management executives are also facing criticism.

The return on equity that Central Hudson anticipates to be 9% in order to preserve its bond rating has also been raised as a concern in public comments.