The cold, seasonal weather; higher market prices for energy; and changes in customer credits are contributing to higher energy bills this winter as compared to last year. Together, these factors result in natural gas bills that are, on average, about 6.5 percent higher in January and February than the same months last year, and electric bills that are about 13 percent higher.

The chill associated with winter weather is causing residents to use more energy now than at other times of the year. “Central Hudson’s natural gas customers typically use nearly 60 percent of their total annual natural gas usage during the three months from December through February, and heating bills now being received reflect this usage,” said Senior Vice President of Customer Services Charles A. Freni.

“The frigid temperatures in late January also prompted our customers to set two natural gas usage records,” said Freni. Despite these records, natural gas usage declined by nearly 6 percent in January and February compared to one year ago.

Commodity prices in the deregulated market for both electricity and natural gas are higher in 2005. The market price for natural gas rose about 7 percent over the same period last year, offset somewhat by the 6 percent decrease in usage; for electricity, the market price is about 10 percent higher, with usage about the same as last year.

Changes in customer credits are also having an affect on electric bills. To date, nearly $90 million in credits have been applied to customer bills since 2001. Customer refunds, that were drawn from the Customer Benefit Fund and that appear as a credit on electric bills, however, are nearing their conclusion and are significantly less than last year. “In addition, the Transitional Power Agreement, which contracted to purchase a portion of our customers’ electricity needs at below-market prices from the new owners of Central Hudson’s former fossil-fueled power plants, ended in October 2004. That has increased electric supply prices due to variations in the market,” said Freni.

To lessen the impact of weather and rising commodity costs, Central Hudson contracts a portion of its customers' energy supply at fixed prices, and also purchases energy on the spot market to take advantage of positive developments in market prices. “It's also important to note that our delivery rates, which are stable and have not changed since 1991 for natural gas and 1993 for electricity, do not vary with prices in the energy market,” said Freni.

To avoid the seasonal impacts of increased energy usage, customers may consider enrolling in Central Hudson's Budget Billing Plan, which divides annual energy usage into equal monthly amounts. A customer's annual costs are added up and divided by 12, resulting in the amount they are billed for 11 months. The twelfth month includes an adjustment (either plus or minus) to reflect the actual energy usage.

Customers may also pursue opportunities to obtain natural gas supply and electric contracts with independent marketing firms. A list of companies offering energy supply can be found on Central Hudson’s Web site at www.CHEnergyGroup.com, or by calling 1-877-444-CHGE (2443).

Finally, customers should always explore ways to conserve energy; helpful tips to do so may be found at www.CHEnergyGroup.com.