First and foremost, Central Hudson’s current rate order with the New York State Public Service Commission will expire on June 30, 2010. Electric and gas rate case proceedings are conducted over an 11-month process, and a new rate plan is proposed in order to be ready before the expiration of the current plan next year.
We are seeking a modest increase in our delivery rates due to increased expenses for items such as trimming trees, providing fleet fuel and paying taxes, as well as continuing infrastructure investments to improve the reliability of our service and meet the needs of the Hudson Valley. Costs for many of the goods and services used to maintain and operate the natural gas and electric system have also increased.
We understand how rising costs affect our customers, too, and seized every available opportunity to reduce our costs. For example, we worked closely with our employees to reduce labor and benefit expenses with an expected savings of $75 million over five years. We also serve more customers with fewer employers than we did in 2006. Central Hudson's electric and natural gas rates are near the state average. Natural gas prices, even with the new rate proposal, also compares favorably with other heating fuels.
(click here for a larger version of the image)
More than 60 cents of every dollar Central Hudson receives is used to pay for the electricity and natural gas used by customers. Taxes add another 10 cents. The remainder is used for supplies (including gasoline and diesel fuel for vehicles), tree trimming and vegetation management, labor, depreciation and reinvestment in the electric and gas system, and a small amount (less than one percent) as a contribution towards shareholder dividends.
Remember, too, that for years Central Hudson customers have paid competitive rates. Our goal is to continue to provide customers with safe, dependable electric service at the lowest possible price. 
|
