State approves program for moderate incomes
A new program will expand energy assistance to moderate-income households facing difficulties paying electric and gas bills, and Central Hudson is requesting more time to begin enrolling customers.
Under an order approved by the state Public Service Commission on July 17, Central Hudson and other utility companies must expand their existing discount programs by Dec. 1 to households earning up to the state’s median annual income ($82,095), with the cost funded primarily by surcharges on ratepayers.
Utility customers already pay a surcharge to fund the state Energy Affordability Program, but eligibility is limited to low-income ratepayers. However, the number of people with unpaid energy bills has grown since the pandemic. Under the expanded criteria, the Public Service Commission estimates that 1.6 million new ratepayers will be eligible for assistance.
The benefits are also designed to help the state meet a goal of limiting utility bills to no more than 6 percent of household income. But eligible ratepayers in Beacon, Philipstown and other areas served by Central Hudson may have to wait a few months longer to enroll because the company is requesting more time to expand the program.
Joe Jenkins, a spokesperson for Central Hudson, said the company is “deeply committed to making energy more affordable” but must build a system to verify the eligibility of customers and to reconfigure its billing system.
As part of its July 17 order, the Public Service Commission is giving Central Hudson three months to file “a detailed explanation of the reasons and root causes” of its request for a delay and to provide an enrollment date “not to exceed 270 days” from the date of the directive.
As of June, about 52,000 of Central Hudson’s residential customers, or 19 percent, had unpaid charges that were at least two months old. The overdue charges total $137 million, a significant increase from the 8 percent of customers who owed $8.7 million as of December 2019, according to state data.
Ratepayers with higher incomes received a one-time lifeline in January 2023 when the state approved credits totaling $672 million for residents and businesses who fell behind during the pandemic. Central Hudson’s credits maxed out at $2,000 for qualifying residences and $1,250 for small businesses.
Most of those credits ($571 million) came from surcharges on electric and gas bills. The utilities agreed to forgo $101 million they borrowed to cover shortfalls when the state imposed a moratorium on shut-offs. Some consumer groups are pushing the Public Service Commission to consider alternatives to funding the assistance with surcharges, especially as energy charges continue to rise.
