ALBANY – The State Public Service Commission has released a critical audit of Central Hudson Gas and Electric Corporation making recommendations related to strategic planning, billing and information systems, project management, and benchmarking.
The state agency said the investigation into the utility’s customer billing problems remains ongoing.
The study said that Central Hudson experienced several billing issues after replacing its 40-year-old customer information system with adjusted bills jumping 900 percent.
The auditor found the company’s implementation suffered due to the inexperience of the company’s information technology leadership team and its heavy reliance on software vendors for tasks typically managed internally.
The consultant noted the company’s practice of issuing bills monthly but reading meters every other month contributing to billing issues and a large increase in customer complaints.
The audit also found that as of June 2022, o0nly 53 percent of Central Hudson’s electric and gas meters featured automated meter reading technology.
The auditor recommended meters be read monthly to better align consumption with changing energy prices and reduce billing issues and customer complaints.
The report also said Central Hudson should assign a project management officer for all major IT programs and implement a standardized business process improvement capability program.
The auditor found that climate goals are not included in yearly business plans and performance management team goals. The auditor found that the company’s formal strategic plans did not identify business opportunities linked with climate change initiatives, nor were the potential benefits considered at the board level.
Senator Michelle Hinchey (D, Saugerties) said the audit reaffirms Central Hudson’s “sweeping mishandling of estimated billing and woefully inadequate customer service procedures.”
She said the PSC findings “make the need for my legislation to stop these negligent practices all the more urgent.”
