Central Hudson Gas and Electric, a prominent utility company serving nearly 400,000 customers in the Hudson Valley suburbs, has proposed significant rate hikes for both gas and electric use.

In a request submitted to the state Public Service Commission, Central Hudson is seeking approval for a 16% increase in electric rates and a 19% increase in gas rates. These proposed hikes come as part of the company's efforts to cope with the rising costs of electrification and the need for upgrading infrastructure in a changing climate marked by more frequent and intense weather events.

According to Joseph Hally, the vice president for regulatory affairs at Central Hudson, the rate increases are essential to support the transition to a greener energy grid while maintaining and improving the power distribution network. The company aims to replace aging poles, power lines, and transformers while hiring an additional 200 workers to enhance storm response capabilities and restore customer service more efficiently. The rate hikes, if approved, will go into effect in July 2024, and the increased revenue will be used to address infrastructure challenges and ensure timely billing, as the company recovers from a tumultuous billing system rollout in 2021. Other utility companies in the state, such as New York State Electric and Gas and Rochester Gas and Electric, have also requested double-digit rate hikes pending state approval, leading consumer groups to voice concerns over the financial burden faced by customers already struggling with bills.

Source: lohud.com