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A proposed government takeover of Central Hudson Gas & Electric could lead to a significant increase in utility rates, according to a coalition of labor and business groups. The Protect Our Power Coalition, which opposes the takeover, commissioned a study from Concentric Energy Advisors estimating that the initial cost of the takeover could reach $7 billion, with additional costs for converting gas to electric infrastructure ranging from $2.6 to $5.2 billion. This could result in customer delivery bills rising by as much as 36% across the Hudson Valley.
The coalition argues that these costs would burden residents and businesses for decades, potentially impacting jobs, economic growth, and property tax revenue. Steve Carroll, President of IBEW Local 320, expressed concerns about the impact on skilled workers and service reliability. Frank Castella, President of the Dutchess County Chamber of Commerce, warned that the financial uncertainty could threaten local businesses and economic stability.
Despite these concerns, a separate feasibility study by NewGen Strategies suggested that a public takeover could initially result in modest savings, with potential for greater savings over time. However, the feasibility of the takeover remains uncertain, as Central Hudson and its owner, Fortis Inc., have shown no interest in selling. The Hudson Valley Power Authority Act, which would authorize the state to use eminent domain for the takeover, faces significant legislative hurdles.
Assemblymember Sarahana Shrestha, a supporter of the takeover, criticized private utilities for using "study-like claims" to oppose public buyouts without providing transparent data. She cited Massena, New York, as an example where public power led to lower rates.
The debate over the proposed takeover highlights the tension between public and private control of utilities, with both sides presenting conflicting financial projections and concerns about the future of energy costs and service reliability in the region.