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Assemblymember Sarahana Shrestha is urging the New York Public Service Commission to consider a government takeover of Central Hudson Gas and Electric Corporation. She proposes the creation of the Hudson Valley Power Authority, a publicly owned entity to replace Central Hudson. The utility company has requested permission to increase electric delivery rates by 5.3% and gas rates by 5.9%.
Shrestha, who represents the 103rd Assembly District, argues that public ownership would provide more reliable and affordable energy services. According to New York Focus, Central Hudson, owned by a Canadian holding company, has faced billing issues since 2021, leading to customer dissatisfaction and state regulators appointing an independent monitor. The company is also pursuing significant rate hikes, with judges recommending increases of 17% on electric bills and 22% on gas.
The proposed Hudson Valley Power Authority would aim to cap bills at six percent of customers' incomes and promote a transition to green energy. The plan includes labor protections and democratic governance, modeled after successful public utility transformations in other regions. However, the proposal faces resistance from Central Hudson and some labor unions, like the International Brotherhood of Electrical Workers, who are concerned about the impact on workers.
Shrestha's initiative is part of a broader movement to reform energy systems across New York, as similar efforts have encountered challenges in other areas. The proposal is still in its early stages, and the Public Service Commission has yet to respond to Shrestha's request for an analysis.