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Central Hudson Gas and Electric Corporation may see a significant revenue boost if proposed rate hikes are approved. The company stands to gain approximately $96 million over three years, according to documents filed with the Public Service Commission. The proposal outlines increases in electricity and gas delivery rates, which would impact most customers. By the third year, the average electric bill would rise by 3.4 percent, while gas bills would increase by 3.7 percent.
The rate hike plan, announced on Tuesday (May 13), includes a three-year agreement with the state and other parties. If approved, a typical Central Hudson customer would pay an additional $5.43 per month for electricity delivery in the first year, with further increases in subsequent years. Gas delivery charges would also see a rise, starting at $7.73 per month in the first year. However, lower-income customers enrolled in an energy-assistance program would see a decrease in their bills.
Central Hudson plans to use the additional revenue for infrastructure improvements, energy-efficiency programs, and a 9.5 percent return on shareholder equity. The plan also includes provisions for customer outreach and workforce training in green-energy fields. The proposal still requires approval from the state Public Service Commission, which has scheduled an evidentiary hearing for June 16. Public comments can be submitted online to the PSC.
Despite the potential benefits, the proposal has faced criticism from state and federal officials, who argue that the rate hikes add to the financial burden on customers. Assembly Member Jonathan Jacobson has urged the PSC to reject the agreement, citing concerns over the return on equity benefiting shareholders more than customers. The proposal has sparked discussions about the need for a public utility to replace the Canadian-owned Fortis, Central Hudson's parent company.