The New York State Public Service Commission has approved a joint proposal to set new three-year electric and gas rate plans for Central Hudson Gas & Electric Corporation. The agreement, which takes effect from July 1, 2025, was signed by Central Hudson, Department of Public Service staff, Multiple Intervenors, and Walmart. While other groups such as the Public Utilities Law Project and the Utility Intervention Unit did not sign the proposal, they have not opposed it.
Under the adopted plan, Central Hudson’s original request for increased delivery revenues will be reduced significantly. The Commission cut the company’s requested total electric delivery revenue increase by over $17.5 million—a 37 percent reduction—and gas delivery revenue by nearly $800,000 or 5 percent in the first year.
The plan outlines moderated increases for both electric and gas services over three years. In the first year, electric delivery revenues will rise by $29.7 million (a 5.5 percent delivery and 2.9 percent total revenue increase). The second year will see a $31.6 million increase (5.3 percent delivery and 2.9 percent total), followed by a $34.5 million increase in the third year (5.3 percent delivery and 3 percent total). For gas service, there will be an $14.5 million increase in year one (8.8 percent delivery and 5.4 percent total), rising to $15.9 million in year two (8.7 percent delivery and 5.6 percent total), and $17.5 million in year three (9 percent delivery and 5.8 percent total).
Commission Chair Rory M. Christian said: “The adopted joint proposal meets the legal requirements that the company continue to provide safe and adequate service at just and reasonable rates,” adding: “The three-year rate plan is in the public interest. The forward-looking plan we have adopted benefits customers and includes provisions that further important state and Commission objectives, while keeping customer affordability first and foremost in mind.”
Governor Kathy Hochul had previously stated that Central Hudson’s initial rate proposal was too high; she directed Department of Public Service staff to focus on affordability during their review of the case.
Department staff also reviewed about 200 public comments as part of their process; public statement hearings were held alongside evidentiary hearings and technical conferences.
Central Hudson serves approximately 315,000 electric customers and 90,000 gas customers in New York’s Mid-Hudson Valley region.
For residential customers, these changes mean an average annual electric bill increase of about 3.47 percent for each of the first two years covered under this agreement, dropping slightly to a 3.23 percent rise in year three; residential gas bills are expected to go up by about 5.3 percent in year one, then by roughly seven percent annually thereafter through June 2028.
Provisions within the joint proposal include expanded outreach efforts to enroll more eligible households into New York’s Energy Affordability Program—which offers significant bill discounts—as well as enhanced consumer protections aimed at supporting low-income customers.
Full details on today’s decision can be found on the Commission’s website at www.dps.ny.gov using Case Numbers 24-E-0461 or 24-G-0462. Physical copies are available from the Commission’s Files Office at Three Empire State Plaza in Albany.
