Push for public takeover of Central Hudson coming to Catskill

CATSKILL―Hudson Valley for Public Power, a coalition of organizations coming together to pass state legislation that would replace Central Hudson with a publicly owned and not-for-profit corporation, is holding a town hall meeting at the Catskill Community Theatre later this month.

Introduced in 2024 by Senator Michelle Hinchey (D-Saugerties) and Assemblymember Sarahana Shrestha (D- Esopus), the bill creates the Hudson Valley Power Authority (HVPA) that is authorized to acquire Central Hudson from the Canadian holding company Fortis, Inc. and run it as a state-owned public benefit corporation.

Both state lawmakers will be at the Catskill meeting on June 11 at 6 p.m.

According to Shrestha, both her office and Hinchey’s “have spent way too much time helping our constituents with billing issues,” referring to the Central Hudson’s implementation of a new billing system in 2021 that led to the overcharging of more than 8,000 customers and led to a State investigation and ultimate settlement.

“Problems with Central Hudson are still one of the top concerns we hear from constituents on a daily basis, and the company keeps pursuing rate hikes while our seniors, families and small businesses struggle with rising costs,” said Hinchey.

“The HVPA is a model that would put ratepayers first. It would deliver more affordable and reliable energy, accurate and transparent billing, and a stronger commitment to clean energy that can help stabilize and reduce costs over the long term,” Hinchey added.

**Last year, Hudson Valley for Public Power released a feasibility study showing that the HVPA would save over $15 million in year one, as reported in the New York Times, and would cumulatively save ratepayers nearly $3 billion by year thirty.

“Currently, over two million New Yorkers are considered utility burdened, paying over six percent of their household income on utilities. In the Hudson Valley, the proportion is much higher, with roughly one in four residents considered energy burdened,” Hudson Valley for Public Power said in a statement.

The New York State Public Service Commission’s latest approved rate hike for Central Hudson took effect in September 2025 and allows for $2.8 million in executive bonuses, the coalition noted.

“Utilities like Central Hudson are corporate monopolies that are allowed to pass 100% of their costs and profit obligations to customers,” said Shrestha.

“And the more they invest in expensive capital projects, the more profits they can make for their shareholders. This means that instead of investing in cost savings and what the public needs, they over-invest in capital to maximize profits,” Shrestha continued.

“The most obvious solution here is to remove the shareholders from the picture altogether,” she added.

Preliminary estimates put the cost of the takeover anywhere from $561 million to $1.19 billion, according to a report from the Center for Public Enterprise. The HVPA can either purchase the securities or assets of the utility or it can exercise eminent domain.

Under the HVPA, household utility bills would be capped at six percent of household income. HVPA will also have internal mandates to achieve the goals of the Climate Leadership and Community Protection Act, including procuring 70% renewable electricity by 2030 and 100% renewable electricity by 2040, provided the supply is available.

HVPA governance would be by a board of trustees that is overseen by a seven-member observatory. Board members would include appointees by the governor, Senate, and Assembly, as well as the business manager of the International Brotherhood of Electrical Workers (IBEW) Local and two members of an observatory. That observatory would include an elected county representative from each Ulster, Dutchess, and Greene counties, along with one from the outlying counties, Albany, Columbia, Orange, Putnam, and Sullivan, in addition to two labor members from the IBEW Local and two representatives from one or more academic institutions.

Still, Central Hudson has maintained that it is not for sale and another coalition of more than 30 labor unions and business organizations, known as Protect Our Power, has launched a campaign against the HVPA.

The Protect Our Power Coalition, who commissioned a study from Concentric Energy Advisors and released the results last December, claims the initial cost of a takeover would be approximately $7 billion as of June 2028, with additional gas-to-electric conversion costs of at least $2.6 to $5.2 billion.

“These costs would be borne by residents and businesses across the region, likely lasting for decades, and would come on top of regular utility bills. An analysis demonstrates customers’ delivery bills could rise by as much as 36% as a result of a government takeover of the company,” the group said in a statement.

Central Hudson serves approximately 300,000 electric customers and 80,000 natural gas customers across the Hudson Valley.

“The Hudson Valley Power Authority Act is driven by local residents across our communities who need lower utility bills, reliable service and transparency from a system that has prioritized shareholder profits over ratepayers for far too long,” said Hinchey.

“This is the kind of system ratepayers deserve,” she said.

Members of the public can register to attend the Catskill town hall meeting at actionnetwork.org/events/catskill-town-hall.