Central Hudson Gas & Electric reaches agreement on three-year rate plan

Central Hudson Gas & Electric filed a proposal on Aug. 24 with the New York State Public Service Commission that outlines future energy infrastructure investments as well as its three-year rate plan.

Central Hudson Gas & Electric President and CEO Charles Freni said the proposal seeks to bolster modernization of the electric, natural gas and information technology systems, while reinforcing the provision of safe and reliable energy services. It also seeks to enhance the customer experience and mitigate cyber security risks.

“The Joint Proposal was developed after months of extensive discussions with the Department of Public Service Staff, consumer advocates, environmental organizations, local community groups and other stakeholders for the benefit of customers,” Freni said on Aug. 25.

The groups that agreed to the proposal include the Public Utility Law Project of New York, Inc.; the Utility Intervention Unit of the Department of  State, Division of Consumer Protection; Alliance for a Green Economy; Dutchess County;  New York Power Authority; New York Geothermal Energy Organization; Family Energy, Inc; Marathon Power LLC; and M&R Energy Resources Corporation.

The proposed three-year rate plan calls for a decrease in electric rates in the first year during the COVID-19 economic recovery and slight increases thereafter. Specifically, the total average residential electric bills using 640 kilowatt-hours (kWh) per month would decrease by 0.25 percent in the first year; increase by 1.3 percent, or $1.72 per month, during the second year; and 1.4 percent, or approximately $1.82, in the third year.

Further, the total average residential natural gas bill using 870 cubic feet (ccf) per year would increase by 1.2 percent, or about $1.64 per month, during the first year; 1.6 percent, or about $2.17 per month, in the second year; and 1.1 percent, or about $1.50, during the third year.

“Recognizing the financial challenges faced by many of our residential and business customers, the proposed three-year plan seeks to provide immediate relief and modest increases once economic recovery is more fully underway,” Freni said.

The proposal also includes investments to reinforce electric and gas system reliability and resiliency through storm hardening, expanded vegetation management/tree trimming and deployment of new technologies. In addition, it calls for an expansion of energy efficiency programs like rebates and incentives on the purchase of ground and air-sourced electric heat pumps, electric vehicle charging initiatives and system investments aimed at reducing emissions.

“This plan, which has the support of the Staff of the Department of Public Service and many of the parties to these proceedings, would allow Central Hudson to safely and reliably serve our customers by modernizing the energy systems, improving energy efficiency and expanding customer assistance programs,” Freni added.

Regulators are expected to rule on the joint proposal in the fall.