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For Immediate Release: 11/18/21 Rory M. Christian, Chair Contact:
James Denn | James.Denn@dps.ny.gov | (518) 474-7080
21117/20-E-0428; 20-G-0429; 20-M-0134
November 18, 2021
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PSC Slashes Central Hudson Rate Hike Request |
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Electricity Rates Decrease in First Year for Residential and Commercial Customers, Minimal Increases in Second & Third Years
CLCPA Requirements Made Core Component of Decision to Promote Energy Efficiency, Demand Response, Geothermal Deployment
Utility Agrees to Reduce Both Electric and Natural Gas Usage
Decision Backed by Governmental, Environmental, Commercial and Customer Groups
ALBANY — The New York State Public Service Commission (Commission) today approved a three-year rate plan for Central Hudson Gas & Electric Corp. (Central Hudson) customers that is dramatically lower than what the company initially requested. The Commission adopted a joint proposal signed by the company, Department staff, and environmental and business groups, that, among other things contains provisions to promote energy efficiency, demand response, geothermal deployment, and electrification options to meet customers’ energy needs while working to lower natural gas demand and further minimize the need for additional gas infrastructure.
“The joint proposal provides sufficient funding for the companies to maintain safe and reliable service, while moderating rate impacts during the term of the rate plan and mitigating the impacts to ratepayers suffering the financial consequences of the pandemic,” said Commission Chair Rory M. Christian. “The joint proposal is also consistent with our nation-leading clean energy initiatives, as well as our social and economic policies. This agreement is in the public interest and it comports with New York’s clean-energy goals.”
The three-year rate plan for Central Hudson’s electric and gas businesses that began on July 1, 2021 and will continue until June 30, 2024. With the Commission’s decision, electric delivery revenues will decrease $1.1 million in the first year and increase of $8 million and $8.7 million in the second and third years, respectively. The gas delivery revenue increases will be $3.9 million in the first year, $3.9 million in the second year, and $4 million in the third year.
For the typical residential electric service customer, these revenue changes would yield a $0.33 decrease in the average monthly bill during the first year, a $1.72 increase in the second year, and a $1.82 increase in the third year. The average monthly bill of the typical gas service customer would increase by $1.64 in the first year, $2.17 in the second year, and $1.50 in the third year.
The order adopts terms of a joint proposal executed by Central Hudson; trial staff of the New York State Department of Public Service; Multiple Intervenors; the Public Utility Law Project of New York, Inc.; the New York Geothermal Energy Organization; the Utility Intervention Unit of the New York State Department of State; Alliance for a Green Economy; Dutchess County; the New York Power Authority; and several private energy companies.
Central Hudson initially proposed delivery rates that were designed to produce an annual electric delivery revenue increase of approximately $32.8 million and an annual gas delivery revenue increase of $14.4 million, resulting in base delivery revenue increases of 8.4 percent and 12.1 percent, respectively, or total bill increases for an average residential customer of 6.2 percent and 8 percent, respectively.
Central Hudson distributes electricity to more than 300,000 customers and natural gas to about 84,000 customers in the Mid-Hudson River Valley Region of New York. The company’s most recent rate plan was adopted in a rate order issued in June 2018, when the Commission approved a three-year electric and gas rate plan.
Other components of the decision include the following:
The Commission’s decision reflects compromises made by diverse and ordinarily adversarial parties with strong incentives to craft resolutions that addressed their various interests. The new rate plan reflects an appropriate balancing of ratepayer and shareholder interests, while making meaningful progress toward the achievements of State climate goals and low-income affordability.
Today’s decision may be obtained by going to the Commission Documents section of the Commission’s Web site at www.dps.ny.gov and entering Case Numbers 20-E-0428; 20-G-0429 or 20-M-0134 in the input box labeled "Search for Case/Matter Number". Many libraries offer free Internet access. Commission documents may also be obtained from the Commission’s Files Office, 14th floor, Three Empire State Plaza, Albany, NY 12223 (518-474-2500). If you have difficulty understanding English, please call us at 1-800-342-3377 for free language assistance services regarding this press release.
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