ALBANY – The State Public Service Commission Thursday approved a settlement valued at $62.59 million with Central Hudson Gas and Electric Corporation and up to an additional $2 million in stipulated payments if the company fails to deliver monthly meter readings on schedule.
The agreement requires shareholders to pay the full cost of remedial actions taken to fix the billing system, as well as costs associated with a move to regular monthly meter readings. The company shareholders must also foot the bill to implement recommendations made by an independent monitor.
“Customers rightly expect to receive timely and accurate bills for their utility services,” said Commission Chairman Rory Christian. “Our investigation and prudence review and audit found that Central Hudson wasn’t meeting this basic expectation. As a result of our investigation, the company has made and will continue to take corrective actions to resolve billing problems that have caused many customers great stress and confusion.”
Ever since the company switched to a new billing system in recent years, customers across the utility’s territory began receiving outrageously high bills. The investigation determined employees failed to receive proper training on the new system, one that had untold glitches.
Here is what some public officials had to say about the settlement:
- State Assemblyman Jonathan Jacobson (D, Newburgh)” “I wish to commend the Public Service Commission (PSC) for holding Central Hudson accountable for its billing practices including late billing, abuse of estimated billing and widely inaccurate billing. Central Hudson will now be required to begin monthly meter readings beginning in October of this year and will have a penalty of $500,000 per month for failing to do so. Your utility bill should be timely and not be a mystery. This settlement, and the recent legislation which I passed this session, will achieve this basic standard of service which all Central Hudson customers should expect and deserve.
- State Senator Michelle Hinchey (D, Saugerties): “This settlement finally forces Central Hudson to change its practices while also protecting ratepayers by ensuring that shareholders will be the ones paying this cost. While this ruling forces a systemic change within Central Hudson, it does not change the fact that individual customers have been harmed, with many continuing to face billing problems still today. The process for individuals to seek justice directly with the PSC still stands, and those affected should file independent cases with the Department of Public Service.”
- Ulster County Executive Jen Metzger: “I want to thank the Chair Christian and the Commission for today’s decision, which rightly penalizes Fortis/Central Hudson shareholders, including the company’s top management, for the harm inflicted on thousands of residents and small businesses by mismanaging billing and cutting costs for the sake of profit. It was important for the Commission to complete the investigation and prudence review before issuing any Order on the rate case to ensure justice for ratepayers, hold the Fortis/Central Hudson accountable, and prevent utility behavior like this in the future.”
- Congressman Pat Ryan (NY-18): “As your County Executive and your Congressman, but most importantly, as your neighbor and fellow ratepayer, we’ve fought this battle against Central Hudson together for years. I always said we’d never back down until every ratepayer was made whole – today, we finally held them accountable,” said Congressman Pat Ryan. “This settlement, paid for solely by shareholders, and including direct relief for ratepayers, is a direct result of collective and relentless advocacy, particularly the tireless efforts of everyone at PULP. These multi-billion dollar monopolies have more than enough power and profits – today, we returned that power to Hudson Valley families. But the fight isn’t over yet. I promise I’ll continue to hold their feet to the fire in the upcoming rate case.”
