Investing In Our Future
Reliable Energy, Protected Privacy:
Central Hudson's Smarter Rate Plan
In a major step toward strengthening the Hudson Valley’s energy future, the New York State Public Service Commission has approved a new multi-year rate plan for Central Hudson Gas & Electric Corp. This forward-looking plan empowers Central Hudson to make essential upgrades that will enhance the reliability of the region’s energy infrastructure and reinforce cybersecurity protections against evolving threats. Designed with customer impact in mind, the three-year plan prioritizes efficiency; keeping bill increases modest for most customers while delivering immediate savings for low-income households.
The plan, which goes into effect on Sept. 1, 2025, focuses on infrastructure investments that help fulfill our obligation to provide safe and reliable service to the communities we serve and comply with New York’s climate laws.
FAQs
The rates will go into effect on Sept. 1, 2025 – the first day of the month following the approval by the state Public Service Commission on Aug. 14, 2025.
In rate year 1 an average residential electric customer will see a Total Bill Monthly Increase of $5.43 or 3.12% (or monthly increase of 5.09% of the delivery-only charges). Customers who receive HEAP or other assistance will see a Total Bill Monthly Decrease of ($3.85) or –4.20% (or monthly decrease of -11.26% of the delivery-only charges).
In rate year 1 an average residential gas customer will see a Total Bill Annual Increase of $92.75 or 5.19% (or annual increase of 6.60% of the delivery-only charges). Customers who receive HEAP or other assistance will see a Total Bill Annual Increase of ($15.08) or 1.08% (or annual increase of 1.46% of the delivery-only charges).
This plan includes Energy Affordability Program funding for bill reductions for participants. The Rate Plan also also includes several outreach efforts designed to boost enrollment in the Energy Affordability Program.
The new rates will take effect for three years. After the third year, those rates will stay in place until the Commission makes any changes.
In rate year 1 an average residential electric customer will see a Monthly Delivery Increase of $5.43 or 5.09%. In rate year 1, our most vulnerable customers who receive the base level Home Energy Assistance Program ("HEAP") or other qualifying benefits will see a Monthly Delivery Decrease of ($3.85) or -11.26%.
In rate year 1, an average residential gas customer will see an Annual Delivery Increase of $92.75 or 6.60%. In rate year 1, our most vulnerable customers who receive the base level Home Energy Assistance Program ("HEAP") or other qualifying benefits will see an Annual Delivery Increase of $15.08 or 1.08%.
We know that a higher utility bill is something no customer wants to see, and every dollar we spend is carefully evaluated to ensure we deliver maximum value and benefits at the lowest possible cost.
We have adjusted our rates to keep our services safe, reliable and secure for you. Here’s why:
Upgrading Infrastructure: We’re replacing old equipment and making investments to ensure our electric and gas systems remain safe and efficient for you.
Cybersecurity Protection: As digital threats evolve, we’re strengthening our cybersecurity to safeguard critical systems and your information.
Also, since the COVID-19 pandemic, Central Hudson has been proactively engaging with customers who have unpaid bills to get them back on track, offering payment plans and other assistance to avoid formal collections processes. Despite these efforts, approximately one out of every four customers have not paid for service used. When customers who can pay don’t pay, it impacts all customers through increased rates.
No. The increases associated with this rate plan are unrelated to previous billing issues. Previous billing issues were investigated and closed by an Independent Monitor Report ordered by the Public Service Commission.
Previous billing issues were investigated and closed by an Independent Monitor Report ordered by the Public Service Commission. As part of that investigation, Central Hudson paid and otherwise will not recover from customers a total amount of $62.59 million. The Final Report issued by the Independent Monitor, PA Consulting, found that the billing system is stable and that critical issues have been resolved.
The Commission is responsible for approving rates that allow utilities to provide safe, efficient and reliable service. This rate plan ensures that Central Hudson can continue to operate effectively, upgrade essential infrastructure, and strengthen both physical and digital systems to maintain quality service for you.
These additional funds will be used for:
- Upgrading our aging energy infrastructure to improve reliability
- Strengthening cybersecurity protections
- Supporting clean energy programs, such as heat pumps and energy-saving tools
- Lowering bills for qualifying low-income households
No. Please see the previous questions regarding Central Hudson being held accountable for past billing errors.
There are many safeguards in Public Service Law which restrict and govern the billing practices of utilities.
Central Hudson follows billing rules set by Public Service Law and overseen by the Public Service Commission. We work hard to ensure accurate billing, and if an error occurs, we make sure you aren’t financially impacted. Any billing issues are corrected as quickly as possible.
You can purchase electricity and natural gas from independent providers instead of Central Hudson. Energy service companies (also known as "ESCOs") offer supply at market-based prices, giving you the freedom to choose the option that works best for you. Central Hudson will continue to deliver energy to your home or business and be there during storms and other outages to restore your service. To compare supplier rates, visit the New York Power to Choose website or check out the Energy Choice section on our website.
Community Choice Aggregation (CCA) allows participating municipalities to procure energy supply service on behalf of eligible energy customers in their communities. Through this model, independent, third-party companies provide energy supply to every eligible home and business within a municipality or group of municipalities under one agreement. Central Hudson remains responsible for energy delivery and billing. Residents can opt out of the CCA and receive their energy supply from Central Hudson or another supplier of their choice.
In August 2024, Central Hudson shared details about its proposed rate plan in a public statement. To keep you informed, we’ve made the proposal available on our website, published notices in newspapers, and included details in bill inserts explaining the changes and process. If you’d like to review the full rate plan, including testimony and exhibits from Central Hudson and other parties involved, you can find them online at the Department of Public Service website: www.dps.ny.gov.
The full Joint Proposal can be found on the New York State Department of Public Service Document Matter Management website. The Joint Proposal is available in the documents filed on the pages for the ongoing Central Hudson Rate Cases, 24-E-0461 and 24-G-0462. The page can be found at the following address: https://documents.dps.ny.gov/public/MatterManagement/CaseMaster.aspx?MatterCaseNo=24-e-0461&CaseSearch=Search. A summary of the Joint Proposal is also available on that page.
Central Hudson’s Contact Center is available by email, web chat, and phone. All information about contacting us can be found on our Contact Us page.
Specific complaints regarding unsatisfactory resolution of issues can be filed with the New York State Department of Public Service at: https://dps.ny.gov/file-complaint.
INFRASTRUCTURE UPGRADES
Central Hudson plans to continue investing in new technologies that improve the durability and reliability of the grid.
- Replacing aging electric and natural gas infrastructure in order to continue to provide a safe, efficient and more reliable gas and electric delivery system. Approximately 20% of existing electric infrastructure is at the end of its useful life, and the majority of infrastructure investments under the proposed rate plan target aging infrastructure.
- Incorporating technologies and upgrades that allow for greater interconnection of locally produced renewable resources and support the growing use of electric vehicles and heat pumps.
COMPLIANCE WITH CLEAN ENERGY INITIATIVES
To align with New York’s Climate Leadership and Community Protection Act’s targets and regulations, Central Hudson must invest in technologies that play a vital role in reducing fossil fuel dependence and advancing the clean energy transition for the benefit of our customers and the environment.
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SYSTEM UPGRADESThe new rate plan includes required investments to update electric and natural gas lines and implement the advanced technologies required to meet increased electrification goals that reduce emissions. Critical investments in grid modernization allow for greater interconnection of distributed energy sources such as solar, battery storage and wind. These investments will allow Central Hudson to adapt to the changing energy landscape and provide better services to our customers. |
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EFFICIENCY INCENTIVE PROGRAMSEnergy efficiency programs are among the most cost-effective ways to reduce emissions and lower energy use. Central Hudson’s proposal continues its full suite of incentives and services that help all customers reduce their environmental footprint and save money. Our programs support CLCPA objectives and promote electric vehicles, efficient heating and cooling, building weatherization and renewable energy. Our programs have saved participating customers more than $107 million in energy bills and reduced energy use by the equivalent of powering 64,000 homes. |
ENHANCED CYBER SECURITY PREPAREDNESS
Central Hudson also proposed to substantially bolster cybersecurity programs though the expansion of its cyber team to monitor and protect critical systems used to operate the local energy grid. These positions are necessary to keep pace with the continuously evolving nature of the cybersecurity threat landscape. Organizational restructuring and additional staffing allow Central Hudson to strengthen critical cybersecurity capabilities, evolve with the online landscape, and provide a dedicated focus on cyber security.