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New details have emerged about Central Hudson Gas & Electric Corporation's proposed rate hike plan, which could lead to significant changes in customer billing. According to a report by the Daily Freeman, the plan includes $2.8 million in incentive bonuses for company executives over the next three years. If approved, the plan would increase gas bills by 3.7% and electric bills by 7.3% over the same period.
The state Public Service Commission (PSC) is set to vote on the proposal tomorrow (August 14) in Albany. The meeting will be livestreamed for public viewing. The proposal, which has been agreed upon by Central Hudson and the Public Service Department staff, also includes a 4% annual pay raise for management, amounting to nearly $27 million over three years.
The proposed rate hikes would result in the average electric customer, using 630 kilowatt hours, seeing a 3.12% increase, or an additional $5.43 per month, in the first year. For natural gas customers using 6,400 cubic feet monthly, bills would rise by 5.19%, or $7.73 more per month. By the third year, electric bills would increase by 3.7% and gas bills by 7.37%.
Central Hudson states that these changes are necessary to support infrastructure investments and comply with New York's climate laws. The plan includes bolstering cybersecurity measures and aligning with the Climate Leadership and Community Protection Act. Real Hamilton-Romeo, Central Hudson's director of corporate communications, emphasized that executive bonuses are standard in the industry and tied to measurable outcomes like safety and customer satisfaction.
The PSC's decision will determine whether Central Hudson can proceed with the proposed rate hikes and executive bonuses, impacting customers across the region.