Legislator Sues Over Central Hudson Rates

Accuses state regulator of neglecting customers
A member of the U.S. House who represents Central Hudson customers in Columbia, Greene and Ulster counties has asked a judge to overturn the utility's latest rate increase.
Rep. Josh Riley, a Democrat representing the 19th District, filed suit on March 13 against the seven-member Public Service Commission, which in August approved Central Hudson's request for increases to the average monthly bill for electricity delivery by $18.30 over three years and for gas by $31.37.
The new rates will produce $144 million in revenue that Central Hudson says it will spend on infrastructure, labor costs (including incentives), energy efficiency programs and a 9.5 percent return on equity for its shareholders. The utility has 315,000 electricity customers, including 6,900 in Beacon and 5,200 in Philipstown.
Rory Christian, who chairs the Public Service Commission, praised the Central Hudson plan because it "significantly" reduced the increase the utility had sought for the first year. Christian said it "satisfies a balance of the various interests involved, both protecting consumers and ensuring the long-term viability of the utility."
Riley is questioning whether the PSC adequately protected customers because its review did not analyze the financial interests held by Fortis, Central Hudson's Canadian parent, in the utility, whose operating revenues rose by $157 million last year to $1.16 billion. Central Hudson's net income also rose by $45 million, to $135 million.
In recent years, Fortis shareholders have received an average of $80 million from Central Hudson, according to Riley. In February, Fortis cited the utility's new rates as one factor in the growth of its net earnings to $151 million in 2025. Although Fortis owns Central Hudson, "sufficient ring-fencing provisions are in place" that "no further in-depth review" of its ownership was needed, according to the Public Service Commission.
Riley also accuses Central Hudson of "pleading poverty" to the PSC while saying in its report for the first quarter of 2025 that "cash from operations, funds obtained through its financing program and equity support from its parent will be sufficient for the foreseeable future" to meet its needs.
He is seeking a court order to reverse the new rates and refund customers the difference between the new charges and the rates in effect before the increase. "Upstate New Yorkers are being crushed under the weight of high utility bills," Riley said in a statement. "Meanwhile, the utility monopolies are making massive profits, which they are sending to their foreign parent corporations."
Kim Mashke, a representative for the Department of Public Service, the PSC's staff arm, said it does not comment on pending litigation. But she said the commission is "committed to protecting" utility customers and "carefully reviewed" Central Hudson's request.
"We welcome the scrutiny of our processes, as it can only help to protect ratepayers and further highlight and clarify the legal parameters within which we operate," said Mashke.
Joe Jenkins, a representative for Central Hudson, said Fortis has invested more than $720 million in infrastructure upgrades since buying Central Hudson in 2013, and that the utility did not contribute any money to shareholder dividends from 2017 to 2024.
Amid anger over rising utility costs, state legislators and consumer advocates say they want greater scrutiny of Central Hudson's payouts to executives and shareholders and of the Public Service Commission's approval process. The rates requested by utilities are usually reduced during PSC review.
Gov. Kathy Hochul announced in February 2025 that the PSC will review the salaries and compensation of non-union management employees at 13 utilities, including Central Hudson, "to protect New Yorkers from unfair rate hikes."
She also signed, in January, a bill introduced by Jonathan Jacobson, a Democrat whose Assembly district includes Beacon, that uti...