Dear Editor,
I recently attended Assemblywoman Shresta’s public forum on Central Hudson’s rate case. Her efforts are misguided and one-sided in flatly opposing any increase. No one likes a price increase, but people DO want their power to stay on reliably which requires annual system maintenance, upgrades to increase capacity, and the replacement of aging infrastructure. People want an increase in renewable power which also requires upgrades and modifications to the electric grid. People want their meters read every month which requires Central Hudson to hire additional people to make that transition. These activities require dollars, i.e., capital expenditures, that must be funded through rates. The cost of gasoline and diesel fuel are up, the cost of the materials required to operate the grid are up, and the cost of borrowing is up. Without the ability to recoup these necessary costs, Central Hudson’s financial viability and the reliability of the gas and electric systems may be negatively affected. This could then lead to even higher borrowing costs should the company’s financial rating be downgraded. The desire to assist low income and elderly customers with their utility bills is admirable, however, such efforts should be transparently funded through taxes applied by state and local governments, and delivered through the social services network rather than misguided efforts aimed at utility companies. Such taxes would be more visible to all taxpayers rather than being hidden in surcharges placed on utility bills. Central Hudson’s rate increase should be approved for the benefit of all of its customers.
John Collins
Tivoli, NY
