How Much Do NY State Taxes and Policies Contrubute To High Electric and Gas Prices From Central Hudson?
/
In the discussion of the pursuit of New York State taking over Central Hudson, an ALBB reader asked: “What about the 22 cents of every dollar that we pay in New York State Taxes and Policies on our Central Hudson bills?”
During the winter, Central Hudson published a video and article explaining the compartmentalization of their dollar division, while people received very high gas and electric bills. In the article, Central Hudson wrote:
Several members of the New York State Senate held a news conference on Feb. 4, 2026 to discuss rising energy costs throughout the state. Increasing energy costs are a real concern for residents and businesses across New York State and the entire country. Central Hudson agrees that timely action is needed to help ease that burden.
It is also important to understand that nearly 60 percent of every dollar customers pay Central Hudson for service is driven by costs outside of our control. These charges go toward state-mandated fees and surcharges, taxes, and payments to third-party companies that generate electricity and supply natural gas.
To produce meaningful and lasting relief for New Yorkers, policymakers should take a careful, honest look at the policies in place that have directly contributed to these rising costs. Central Hudson stands ready and willing to work with lawmakers on practical solutions that deliver real help now – rather than additional legislation that may generate headlines but ultimately results in limited impacts for customers.
Central Hudson is a Fortis company, as illustrated in their logo. Central Hudson started as a private company in 1900 with the aim of consolidating energy and gas supply from multiple suppliers in the region.
In 2013, Fortis Inc. and CH Energy Group, the former parent company of Central Hudson Gas & Electric Corp., announced completion of the transaction to acquire CH Energy Group by Fortis Inc.. See documentation here.
While seemingly unrelated, there have been great efforts to consolidate purchasing power between municipalities in the Hudson Valley in order to gain a discount on electric rates. The first of such consolidation was the Community Choice Aggregation (CCA) agreement, which locked in a low flat rate for electricity to customer’s bills in Beacon and other communities. Beacon customers were automatically opted in to the low flat rate agreement. See Beacon’s code law on that here (it has now ended).
Central Hudson added to the confusion with their own poorly branded letter about the agreement, which ALBB reported on here: “Explaining That Confusing Central Hudson Letter About Changing Energy Supplier - Deep Dive Into Community Choice Aggregation (CCA)”
Followed by a failed rollout of their new billing system and meter reading. “‘Flawed and Disturbing’ Is What Dutchess County Executive Marcus Molinaro Calls Central Hudson's Rollout Of New Billing System”
That discount was met with skepticism from some Beacon customers who opted out. Later, after the start of the bombing of Ukraine by Russia, rates unbuckled and the supplier of the discount program broke their contract with the municipalities and left the agreement. A lawsuit by the municipalities followed, resulting in a settlement check award of $50 per customer, which ALBB reported on here: “Open The Mail: There May Be A $50 Settlement Check In It From Columbia Utilities Power”
During COVID, BLMHudson Valley called attention to a new surcharge that Central Hudson added onto bills after New York State mandated that Central Hudson financially assist customers who could not pay their bills during the shutdown. While it was a NY mandate, Central Hudson passed the charge, or a portion of the charge, onto every other customer: “Central Hudson Adds Surcharge Onto Customer Bills To Partly Cover Arrears Reduction Program”
