Central Hudson Gas & Electric proposes new rate plan
In order to meet the needs of its customers while upgrading equipment and infrastructure, Central Hudson Gas & Electric said it needs to increase rates 16 percent for residential electric and 19 percent for natural gas.
In its proposed new rate plan to the New York Public Service Commission, Central Hudson said the rate increases were necessary and would amount to an additional $1 per day for a typical electric customer and $1 per day for the typical natural gas customer. The new rates are necessary, the company said, so it can upgrade outdated equipment and infrastructure that is past its useful life while ensuring it can maintain safe and reliable utility operations.
“We believe that this proposed rate plan is essential to address our infrastructure needs, recover from the impacts of COVID-19, and ensure that we can respond effectively to extreme weather events – which are occurring more frequently,” said Joe Hally, vice president of regulatory affairs for Central Hudson. “By making these necessary investments, we will not only maintain the safety and reliability of our utility operations but also comply with New York State’s nation-leading clean energy laws, protect the environment, and improve customer service through the adoption of new technologies.”
Approximately 20 percent of the company’s existing infrastructure is beyond its expected useful life, the company said. Three quarters of the company’s infrastructure investments under the proposed plan would target replacement efforts, it said. Investments would also modernize equipment to support energy adoption and electric vehicles while facilitating greater interconnection of clean, renewable resources.
“As climate change continues to manifest in the form of severe storms and extreme weather events, Central Hudson recognizes the importance of being well prepared and responsive. The proposed rate plan will enable us to invest in advanced technologies and equipment necessary to enhance our storm preparation and response capabilities,” Hally said.
Other elements of the plan include upgrading customer service technologies, transitioning from bimonthly meter readings to monthly meter readings, expanding assistance programs, and complying with clean energy mandates.
If approved by the PSC, the rates will go into effect on or about July 1, 2024.
