Daily Freeman: Political leaders call for Central Hudson ratepayer reimbursement

DAILY FREEMAN, PAUL KIRBY

Top political representatives in Ulster County are calling for reimbursements on utility bills in wake of an investigative report harshly critical of Central Hudson Gas & Electric Corp.’s billing practices.

Leaders such as U.S. Rep. Pat Ryan, D-Gardiner, and Assemblywoman-elect Sarahana Shrestha, D-Esopus, issued terse statements Friday in wake of the report released by the Office of Investigations and Enforcement, an arm of the Public Service Commission.

“Central Hudson massively screwed up, and they need to own it,” said Ryan, who represents the 19th Congressional District. “After nearly a year of denying and deflecting their gross incompetence, it’s time they make their customers whole.”

Ryan said he supports a “full prudence review, and am hopeful that this will include customer reimbursements for the thousands of Hudson Valley families who’ve had to pay for Central Hudson’s mistakes.”

Shrestha, who will represent the 103rd Assembly District starting in January, was of the same mind. Shrestha referred to the report’s finding that Central Hudson should end the practice of estimated billing.

“The recommendation to end estimated billing and get actual meter readings must be implemented, illegally back billed customers should have their money refunded, and both the ratepayers and the employees who experienced hardship due to Central Hudson’s negligence must be compensated,” Shrestha said. “An error of this magnitude is unacceptable.”

In the past, Shrestha has suggested that Central Hudson be taken over by the government.

“Privately-owned utility companies have a track record of investing in infrastructure that is not of great value to customers, and then passing that cost to us,” Shrestha said. “They have a ‘perverse incentive’ to make investments that allow them to increase rates.

“Worst of all, despite early warnings from rank and file employees, not only did the company’s leadership fail to immediately rollback the faulty billing system, they showed hardly any interest in containing the situation, providing transparency, and adding staff and training to make sure customers were getting help they needed.”

The Public Service Commission voted Thursday to order Central Hudson to answer allegations contained in the report compiled by its Office of Investigations and Enforcement within 30 days.

The commission released the scathing findings of a months-long investigation and instituted a “proceeding to determine whether the commission should pursue a civil penalty action against Central Hudson Gas & Electric Corporation for apparent failures related to the company’s new customer information and billing system,” a commission statement said.

“In addition, the commission will investigate the propriety of the costs incurred by Central Hudson related to implementation of that system,” the commission said.

Assemblyman Kevin Cahill, D-Kingston, who is the current representative of the 103rd District, said that the report used damaging language.

“The PSC investigation used words like ‘reckless,’ ‘negligence’ and ‘mismanagement’ and stated that Central Hudson implemented their new billing system, at great expense to ratepayers, knowing that it had significant and harmful defects,” Cahill said in a statement. “The report also mentions the over 8000 Central Hudson customers who find themselves in arrears after false, misleading and lapsed billing practices persisted.”

“This is no small thing,” Cahill added. “New York State does not regulate the cost of the gas and electric commodity. It does not control the stock price or in any significant way, the return on shareholder investment. New York does, however, regulate reliability.”

Cahill said there are more unresolved issues.

“It remains to be seen whether in addition to drained bank accounts, the threat of shut offs and other disruptions, the utility properly billed and credited customers at a time of wildly fluctuating commodity prices and unprecedented system failures,” he said.

“Central Hudson’s response — blaming the war in Ukraine, the closure of Indian Point and several other irrelevancies is so Trumpian, it’s comical,” Cahill added.