CONGRESSMAN PAT RYAN STANDS WITH CENTRAL HUDSON CUSTOMERS AND LOCAL ELECTED OFFICIALS AGAINST CENTRAL HUDSON RATE INCREASE, HIGHLIGHTS ONGOING BILLING ISSUES
Congressman Pat Ryan Stands With Central Hudson Customers and Local Elected Officials Against Central Hudson Rate Increase, Highlights Ongoing Billing Issues
Rate case litigation began Wednesday; group calls for accountability, not more profit for billion dollar corporations
POUGHKEEPSIE, NY – Today, Congressman Pat Ryan joined local elected officials as well as Central Hudson customers, including Timely Signs owner Joe Beichert and Ole Savannah owner Dave Amato, to highlight ongoing Central Hudson billing issues and stand together against Central Hudson’s proposed rate increase. In July, Central Hudson filed to increase electric rates by 16% and natural gas rates by 19%, even though their parent company, Fortis, made well over $1 billion in profit last year. Litigation began Wednesday, January 24th, and will continue next week – further details can be found here. A full video of today’s press conference is available here.
“Central Hudson’s proposed double-digit rate increase is blatant corporate greed,” said Congressman Pat Ryan. “Raising prices this much, with Hudson Valley families already feeling the economic pressure, would be unacceptable even if everything at Central Hudson was running perfectly. But everything isn’t running perfectly or even close to it. Customers across the region, many of whom joined us today, are still reeling from years of systemic failure. We’re standing up for the single-mother in Poughkeepsie trying to put food on the table for her kids, the senior on fixed-income in Kingston who simply can’t afford another inflated bill, the small business owner in Newburgh struggling to keep his store open, and everyone in between. On behalf of our entire Hudson Valley community, we’re calling on the PSC to reject Central Hudson’s rate increase.”
“While many of the stories shared about the problems that Central Hudson’s billing system has created are from residential customers and are heartbreaking, there has also been a tremendous adverse impact on nonprofit customers,” said Liselle LaFrance, President of Historic Huguenot Street and a Central Hudson customer. “Historic Huguenot Street met with representatives from Central Hudson at one of Congressman Ryan's workshops. They assured us the problem would be quickly remedied. Instead, it took many months and follow-up calls to get a resolution on that one issue due to the slow response from Central Hudson. However, additional billing issues have persisted. Non-profits already face enough financial straits, we don't need Central Hudson's issues becoming our challenges, too.”
“Central Hudson has created its own problems and should be responsible for paying for them,” said Joe Beichert, Vice President of Timely Signs in Kingston and a Central Hudson customer. “Now, Central Hudson wants to increase charges, but hasn't fixed the billing issues. We applaud Congressman Ryan and State Senator Michelle Hinchey for their efforts to connect the community directly with Central Hudson to solve the issues. This is not a political issue, but rather holding big businesses accountable for poor business practices. We don't want a commercial or plea for forgiveness - we want action and accountability!”
“I have friends who make a living doing honest work every day for Central Hudson - this isn’t about them. This is about my friends that own businesses or are elderly and on a fixed income in this community who can’t make ends meet because of Central Hudson executives’ irresponsible and unacceptable business practices,” said Dave Amato, owner of Ole Savannah Table and Bar and a Central Hudson customer. “My business saw a 300% increase in our bill because of the company’s estimated meter reading problems. For months I was on their case, and when they finally got around to fixing it, they didn’t give us cash, but instead a Central Hudson credit on a piece of paper. Now, I'm lucky that my business was able to weather that, but I know many people who aren’t as fortunate, and need the money they’re owed to support their families. The people in Central Hudson’s corner offices absolutely shouldn’t expect a rate increase while its customers are still suffering real financial harm.”
“After I contacted Congressman Ryan’s office about Central Hudson overestimating my bill, Central Hudson reached out, but didn’t fix its problem,” said Howard Shapiro, a Clinton Corners Central Hudson customer. “Central Hudson’s game playing with overestimated bills has been rampant over the past several years – it’s unacceptable and out of control. Thank you to Congressman Ryan for continuing to hold Central Hudson accountable for these unfair billing practices that are hurting Hudson Valley families.”
“Thanks to Congressman Ryan's efforts, I was able to meet with a Central Hudson account representative in June of 2023,” said Dory Marcinelli, a Poughkeepsie Central Hudson customer. “However, after a lengthy discussion, our issue with Central Hudson is still unresolved and we are still owed a $900 credit. I've had to contact the account representative again for new billing issues. I hope that Congressman Ryan continues to work on behalf of his constituents. Above all, Central Hudson should not receive their requested rate increase.”
“I met with a representative of Central Hudson at a consultation arranged by Congressman Pat Ryan, yet Central Hudson still has not resolved my billing issues,” said Jane Freiman Schanberg, a New Paltz Central Hudson customer and attendee of Congressman Ryan’s Central Hudson workshop. “Something is clearly wrong. Now, Central Hudson has asked for a rate increase. They are a for-profit utility and their billing practices are faulty as thousands of customers have learned. Why should customers who are already overpaying be forced to pay more for corporate incompetence? I call on Congressman Ryan to keep pressure on Central Hudson to fix their billing procedures and stop gouging customers who have no alternative to their monopoly.”
“For three years, my office has worked collaboratively with our partners in government to hold Central Hudson accountable for the financial harm they've caused Hudson Valley families. It’s unconscionable that, in the face of these ongoing billing failures, Central Hudson's response is to ask for a rate hike,” said State Senator Michelle Hinchey. “We strongly urge the PSC to deny this request, and we won’t stop fighting until Hudson Valley residents get the service and transparency they deserve from their utility provider."
“For more than two years, customers of Central Hudson have been plagued with non-billing, late billing, inaccurate bills and excessive use of estimated billing. This was outlined in a damning report from the Public Service Commission in December 2022. Despite the report and the stipulation by Central Hudson to comply with the law, my office is still getting weekly complaints from customers,” said Assemblymember Jonathan Jacobson. “We have handled over 400 complaints. Utilities have a simple responsibility to bill in a timely and transparent manner. This is why I passed a law in Albany to require utilities to bill within three months when a bill is due or lose the ability to backbill for that period. Also, the new law requires the utilities to provide 13 months of usage data at that address including prior customers. Central Hudson should not be rewarded with a rate increase. Customers have learned not to trust the numbers from Central Hudson, and neither should the Public Service Commission with respect to the requested rate hike.”
“While it’s imperative for the city to continue to partner with Central Hudson Gas & Electric Corporation on important infrastructure projects, I am deeply concerned about the proposed double-digit rate increase,” said Poughkeepsie Mayor Yvonne Flowers. “This comes at a time when so many families are struggling to keep up with their bills and following the utility’s billing issues that have caused great angst and confusion among residents. I am grateful the Public Service Commission is taking a comprehensive look at this proposal. Energy is not a luxury; it’s a basic necessity. The goal must be to reduce any proposed rate hike from the outset and spread any additional costs over a longer period of time. There is a fair way forward, and the public should insist that Central Hudson and the PSC ultimately work toward that goal.”
“I totally agree with Congressman Ryan, Central Hudson should be ashamed of themselves, for wanting to increase utility rates on residents,” said Randy Johnson Dutchess County Legislator, District 10. “Some folks have not recovered financially from Central Hudson’s mishap of overcharging residents on their utility bills. No increase is needed currently!
Since Congressman Ryan’s calls for an investigation into Central Hudson’s disastrous billing practices, he has received more than 11,000 formal complaints. A New York State Department of Public Service report revealed that Central Hudson’s billing system was riddled with hundreds of programming errors. This led to nearly 5,000 customers not receiving their bills, 8,000 customers being overcharged, and more than 30,000 customers whose autopay was billed incorrectly, costing them over $16 million.
Central Hudson replaced its CEO following Representative Ryan’s calls for his resignation on the floor of the U.S. House of Representatives. Ryan has held a series of workshops connecting Central Hudson customers in NY-18 with company representatives to resolve billing issues, to establish accountability, and to rebuild trust.
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