Central Hudson Gas & Electric proposes new rate plan

Central Hudson Gas & Electric is working on establishing a new rate plan for next year, effective July 1, 2021.

A new plan is required to continue critical investments to modernize and enhance the region’s energy infrastructure while meeting New York State’s environmental goals. If approved as proposed, the new rate plan would increase average monthly residential electric bills by about $3.50 per month, or 2.8 percent. The increase for an average monthly residential natural gas heating customer’s bill would be about $3.30 per month, or 2.8 percent. In developing the rate plan proposal, Central Hudson reduced expenses and postponed $99 million in projects through 2022. The proposal is subject to approvals.

“These are challenging times for everyone, and we remain dedicated in serving our customers and local communities,” Charles Freni, president and CEO of Central Hudson, said. “The investments we propose to make will enable the transition to a cleaner, more-efficient, and more-responsive energy system. We are deeply committed to the communities we serve, and we have filed this plan to ensure that we can fulfill the energy demands of tomorrow while balancing the needs of today.”

The plan calls for an expansion in customer assistance programs and funding for expanded energy efficiency programs. Also, it includes investments to strengthen electric infrastructure against severe weather; new technologies to improve electric system efficiencies and to expand the interconnection of renewable resources to protect the environment; upgrades to enhance customer service; assistance programs for families in need; modernization of the natural gas distribution system; and improve aging infrastructure to ensure safe and reliable energy delivery systems.

“This new rate plan is necessary as we plan ahead for the future,” Freni said. “We know that many of our customers and the communities we serve are facing financial stress. Our goal with this rate plan is to balance the financial needs of our region as the pandemic evolves, and the economy begins to recover while modernizing the energy system to meet the present and future needs of our customers and communities.”

Since the start of the pandemic, the utility has made contributions totaling $100,000 to local community support agencies, including Ulster County Project Resiliency, Orange & Sullivan COVID-19 Response Fund, Dutchess Responds, Hudson Valley Food Bank, and the Hudson Valley Additive Manufacturing Center at SUNY New Paltz, for the production of face shields for medical personnel in our community.

Also, Central Hudson launched its Back to Business funding program, committing up to $1 million in economic development support to provide local small businesses with grants to help pay down new working capital loans taken with participating local banks.

“The COVID-19 pandemic and economic impacts requires households, businesses, and governments to make changes that allow for the continuation of essential services as the health and finances of our communities recover,” Freni said. “While we recognize that safe and reliable electric and natural gas service is critical during this time, equally important is supporting the communities we serve. We have implemented programs and funding that will help provide some measure of relief, particularly for the most vulnerable households and our region’s small businesses. Central Hudson will continue to contribute to our local economy in support of the communities we serve.”