State to probe executive pay at 13 utilities
Gov. Kathy Hochul announced on Feb. 13 that New York State will review the salaries and compensation of non-union management employees at 13 utilities, including Central Hudson, which serves the Highlands, “to protect New Yorkers from unfair rate hikes.”
Under a rate increase proposed in August, customers in Beacon, Philipstown and other parts of the Hudson Valley would see delivery costs for electricity and gas each rise by $9 a month beginning July 1. The request is being reviewed by the state Public Service Commission (PSC), which regulates utilities.
The request includes $1.3 million in “incentive pay” for executives and $4 million for lower-level managers, according to PSC staff at the Department of Public Service. An earlier audit of Central Hudson concluded in 2023 that the company “set reliability and service-quality metrics at a bare minimum” for employees to qualify for bonuses, according to Hochul.
Central Hudson proposed the rate hike two weeks after the PSC approved, for the year ending June 30, 2025, increases that raised the average monthly residential bill by $12.65 for electricity and $12.25 for gas. That was lower than Central Hudson’s initial request, which would have raised average monthly costs by $30.
If the PSC approves the latest request as proposed, it will boost Central Hudson’s revenues by $62 million annually, which the company said it would spend to replace aging power lines and upgrade other infrastructure. The utility also said it would increase capacity by 449 megawatts to accommodate solar systems, electric-vehicle chargers and heat pumps, and hire 24 employees to protect against cyberattacks.
Joe Jenkins, a Central Hudson representative, said the company “agrees with the governor that New Yorkers deserve fair and transparent rates” and will cooperate with the audit.
Wages and benefits for the company’s 600 non-union employees “make up only 5 percent of the typical customer bill,” he said. “We strive to work with our regulators to hold us accountable, and our lawmakers to enact common-sense policy that doesn’t needlessly raise energy costs.”
Central Hudson keeps fleecing ratepayers and lining the pockets of its executives and shareholders. I support the bill introduced by Assembly Member Sarahana Shrestha and Sen. Michelle Hinchey that would create a Hudson Valley Power Authority. We deserve a nonprofit utility controlled by the people.
Read this: How an obscure advisory board lets utilities steal $50b/year from ratepayers (Pluralistic)
I’m encouraged to read that Gov. Kathy Hochul will review the salaries of the management at Central Hudson. How I wish she would audit the dreadful, erroneous and time-consuming errors of its billing department. Each time I think I’ve worked out the amount I owe, Central Hudson comes up with a new number. First it blamed the alleged lack of meter reading, although I often met my reader and knew his name. After a year, Central Hudson sent me 16 “corrected” monthly bills. When does it stop?
I’m going to urge state Sen. Rob Rolison and Assembly Member Dana Levenberg to advance the Hudson Valley Power Authority Act to replace Central Hudson with a public benefit state corporation designed to act like a community institution.
No readings for months, and sometimes nearly a year, then Central Hudson charges whatever it wants per kilowatt hour after it does read the meter. I’m sure it didn’t charge the lowest price it paid the provider over that time. I haven’t heard anyone talk about this. How is Central Hudson up for a rate increase? It has shown incredible incompetence. [via Facebook]
People are talking about it. I’ve been battling Central Hudson since the pandemic: one month my bill is $250 and another month it’s $600, without any change [in usage] on my part. Its call center has zero ability, right or wrong. [via Facebook]