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A new report examines the potential effects of a proposed state takeover of Central Hudson Gas and Electric in the Hudson Valley. The plan involves creating the Hudson Valley Power Authority to assume control of Central Hudson's operations. According to Times Union, the report, conducted by New Gen Strategies and Solutions, suggests that ratepayers could see a reduction in their bills by 1.9% in the first year, with potential savings increasing to 13% over 30 years.
The proposed takeover aims to address issues like billing irregularities and frequent rate increase requests from Central Hudson. Assemblywoman Sarahana Shrestha and state Senator Michelle Hinchey, who sponsor the bill, believe the public authority would benefit from lower-interest loans and tax exemptions, ultimately reducing costs for consumers.
However, the takeover faces opposition from Central Hudson and its Canadian owner, Fortis Inc. Central Hudson argues that the takeover would lead to costly legal battles, potentially increasing customer bills by up to 36%, according to the Protect Our Power Coalition. The coalition's report also includes costs related to phasing out gas infrastructure, which are not part of the New Gen report.
The New York Times notes that the Hudson Valley Power Authority Act, which would enable the state to use eminent domain for the takeover, has been introduced in the State Legislature but has not yet passed. The takeover effort, led by a coalition of officials, activists, and community groups, seeks not only to lower bills but also to create a more responsive and climate-conscious energy system.