POUGHKEEPSIE – The supply price for natural gas effective May 1 will fall to 64-cents per 100 cubic feet (ccf), down from 97-cents per ccf in April. That represents a 34 percent decrease in the supply price and is largely attributable to efforts made by Central Hudson to mitigate bill impacts that result from energy market price volatility.
Supply prices stated on bills and overall bill impacts will vary for individual customers depending on their billing cycle and energy usage.
As the result of ongoing discussions with state regulators over the persistent upward market pressures on energy supply prices, Central Hudson is further deferring gas supply costs from this past winter in an effort to help reduce bill impacts to customers.
Costs from natural gas spot purchases earlier this year were already being deferred over several months to help reduce winter bill impacts. These spot purchases were necessary during the periods of extreme cold this winter to meet the heating needs of residents and businesses.
With this change, the remaining costs of these spot purchases will now be deferred and spread throughout the 2023 calendar year to provide immediate relief during this period of high energy costs and allow additional time for local economic recovery. Spreading the costs over a longer time period will further reduce bill impacts, utility officials said.
Central Hudson is exploring the viability of a similar approach for electricity costs if another significant spike in supply prices occurs in the future.
Regional and global factors continue to place significant upward pressure on natural gas prices, however. The base price for natural gas supply in May actually increased by 12 percent over April’s base price, but deferral of the costs associated with the previous spot purchases will effectively reduce the natural gas supply price for the coming month by 34 percent.
Energy supply prices, which are accounted for in the supply portion of customers’ bills, are market-based. Central Hudson does not mark-up nor profit on the energy that is purchased on behalf of customers. Electricity and natural gas are provided by independent generators and suppliers in the competitive energy marketplace.
The prices for other utility bill components, including taxes and delivery charges, are regulated by the State of New York and are stable. Utility bills reflect both the price of energy and usage.
Visit www.cenhud.com/en/account-resources/rates/winter-energy-bills/ to find the latest information on energy supply prices, including a video from President and CEO Charles Freni.