Central Hudson Plans Gas, Electric Rate Increases

MID-HUDSON VALLEY, NY — As is happening with other utility providers in New York, Central Hudson is planning on temporarily increasing the cost of both electricity and natural gas to its customers.

In a statement posted on Facebook, the company said supply prices are market-based and not marked-up by Central Hudson.

"We charge customers only what we pay for energy supply and do not profit from market supply cost increases," the statement said. "Central Hudson's delivery rates are fixed, regulated and have not changed recently."

Anthony Campagiorni, senior vice president of customer services and gas operations, said, "Locally, this January featured sustained temperatures that were 11 percent colder than average and 16 percent colder than January 2021.

"This contributed to driving gas usage up more than 13 percent and electric usage up nearly 6 percent over January 2021," he said.

Campagiorni said the increased usage, combined with international and domestic factors, cause the market price of natural gas and electricity to rise in the region and around the world.

He said that natural gas has become a global commodity that not only heats homes but is also heavily relied upon to produce electricity on demand and whenever needed.

The company said there are a number of factors leading to the rise in supply rates, including:

Domestic natural gas pipeline capacity constraints
Increased demand due to cold weather
The retirement of Indian Point
Increased global demand for natural gas
Lower electric production by renewable generators in winter, shifting power production to generators using natural gas
Increased domestic demand for electricity and natural gas as the economy recovers from closures promoted by the COVID-19 pandemic

Central Hudson projects bill impacts for natural gas will be an average increase of about 19 percent and about 46 percent for electric bills. The company estimates about 29 percent for combination electric and natural gas bills.

The company said the increases temporary and may vary for individual customers depending on energy usage and their billing cycle.

Customers may see the effect of these increases spread out over their current bill and next month's bill.

Payment assistance options are available to qualifying customers like the Bill Discount program for income-qualified customers. The federally funded Home Energy Assistant Program (HEAP) grants are now available and the new Regular Arrears Supplement program that provides up to $10,000 in utility arrears assistance to eligible households who are unable to pay their unpaid electric and/or gas utility arrears.
Assemblyman Kevin Cahill, D-Ulster, Dutchess, the news of rising energy costs so soon after the historic ice storm's outage is a real blow to Central Hudson's customers.

"Assurances by the utility that the price spike is likely temporary is of little comfort to folks who are experiencing inflation at rates unprecedented in this century," he said.

Cahill said Central Hudson and its parent company Fortis need to do more to encourage and make available budget billing and be more accurate in their estimated and actual meter readings.

He also said the Public Service Commission has to more carefully scrutinize the company's tariff requests to lower the cost of essential services.

Cahill said customers can determine HEAP eligibility by going to the OTDA website here or calling the HEAP hotline at 1-800-342-3009. Ratepayers currently in arrears can contact the Public Utility Law Project at 877-669-2572 for assistance.