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, coalition officials stated. An analysis demonstrates customers’ delivery bills could rise by as much as 36% as a result of a government takeover of the company. However, Central Hudson has stated several times that the utility is not for sale.

“Our members are the backbone of Central Hudson’s operations, and they take pride in keeping the lights on and the heat running for families across the Hudson Valley,” said Steve Carroll, president of IBEW L.U. 320. “A government takeover creates uncertainty for these skilled workers and risks disrupting the reliability customers depend on. On top of that, saddling residents with billions in new costs is not the answer.”

“This is an enormous price tag that will ultimately fall on the shoulders of hardworking families,” said Todd Diorio, business manager and special international representative with the Eastern NY Laborer’s District Council. “Our members are already struggling with inflation and rising costs. Adding billions more in municipalization expenses is simply unacceptable.”

“Based off Concentric’s study, Central Hudson looked at the potential impact on customers’ delivery bills,” said Joe Hally, vice president of Regulatory Affairs for Central Hudson “The increase in delivery bills can be as high as 36%, which reduces the affordability of our region and would have catastrophic implications for our customers. Additionally, this increase in bills adds no demonstrated improvements in reliability, resiliency, or customer service.”

If the proposed government-run power authority moves forward, Hudson Valley residents and businesses could face billions in added costs on top of their current utility bills. These expenses would likely be financed through long-term debt, meaning customers could be paying for this takeover for decades. Higher rates would impact household budgets, small businesses, and local economic growth—at a time when affordability is already a major concern.

The study also notes that the estimated range does not include several additional costs yet to be considered, such as labor and other contracts, unrecovered regulatory assets, debt refinancing, and ongoing municipalization expenses. Given the protracted nature of condemnation proceedings, the start date for municipalization could be well beyond 2028, further increasing costs, according to the coalition.

By John Jordan