Central Hudson Proposes Plan to Enhance Reliability, Sustainability

Central Hudson Gas & Electric Corp. today filed a comprehensive energy plan with the state Public Service Commission proposing a rate plan that, if approved, would take effect next summer. The plan focuses on infrastructure investments that help fulfill the Utility's obligation to provide safe and reliable service to the communities it serves and comply with New York's climate laws.

"We know that a higher utility bill is something no customer wants to see," said Steph Raymond, newly named President of Central Hudson. "Although we received approval for a one-year rate plan this summer, we will need a new plan ready to take effect when the current plan expires in June 2025. This is necessary for us to continue investing in replacing aging infrastructure, maintaining safe and reliable service, and complying with state climate laws."

If approved, total revenue increases under the proposal are approximately 4.6 percent for electricity and 5.8 percent for natural gas. Central Hudson intends to partner with regulators and stakeholders to explore a potential multi-year plan that would further level out rate impacts.

Under New York's regulatory model, Central Hudson must file a new rate plan to replace its current plan once it expires next year so that critically required investments in the electric and natural gas systems may continue. The latest proposal would replace the current rate order and if approved would become effective on July 1, 2025. The filing launches an 11-month review by state regulators and participating parties and provides several opportunities for public comment.

"We know we play a fundamental role in the lives of our customers, and we take that very seriously. As a customer myself, affordability is at the forefront of my mind," Raymond added. "Our commitment is to maintain a laser focus on our core operations while making them more efficient. Every dollar we spend will be carefully evaluated to ensure it delivers maximum value and benefits to our customers at the lowest possible cost."

The new rate plan balances the critical need to provide safe and reliable electric and gas service while working to identify efficiencies to help keep costs lower for customers. The proposal will enable Central Hudson to:

• Proactively prevent outages and better protect our system from storms by replacing infrastructure that has reached the end of its useful life;
• Facilitate the interconnection of locally owned solar generation, electric vehicle chargers and electric heat pumps throughout the service area by increasing system capacity by 449 megawatts;
• Protect critical infrastructure from cybersecurity threats through strengthening of our cyber team.

Understanding the impacts rate increases can have on customers, we will extend our outreach with customers to access all available assistance programs, including:

• The Low-Income Bill Discount Program, Deferred Payment Agreements, Veterans' Grants, the Good Neighbor Fund and other programs;
• Continued funding of energy efficiency programs and incentives that reduce energy bills for households, including ground and air source heat pumps as well as weatherization products to help reduce overall energy use.

If approved as filed, the total residential electric bill will increase by approximately 30 cents per day, based on market supply prices as of May 2024. Total residential natural gas bills would increase by approximately 29 cents per day. A multi-year agreement with parties and regulators would phase-in rate increases and lessen annual bill impacts.

Central Hudson's proposal pertains to delivery rates only. The supply portion of a customer's bill will continue to be set by competitive energy markets and can fluctuate from month to month. Supply charges are a pass-through cost that Central Hudson does not mark up and does not profit from.

The proposed plan does not include costs related to past expenses associated with Central Hudson's new billing system, which was implemented in 2021. Central Hudson and state regulators announced a settlement on June 20, 2024, in which Central Hudson shareholders will pay for billing system fixes, monthly meter readings, costs associated with recommendations of an independent monitor assigned to review the billing system, and the creation of a customer benefit fund. A report issued by the independent monitor also indicated that critical billing issues have been resolved and that the billing system is stable.

Once available, Central Hudson's complete rate proposal filing can be found visiting www.CentralHudson.com/RatePlanProposal, or at the Department of Public Service website: www.dps.ny.gov.

About Central Hudson

Central Hudson Gas & Electric Corporation is an energy delivery company headquartered in Poughkeepsie, New York. The utility serves approximately 300,000 electric and 90,000 natural gas customers in eight counties of New York State's Mid Hudson River Valley, delivering natural gas and electricity in a 2,600-square-mile service territory that extends north from the suburbs of metropolitan New York City to the Capital District around Albany. Central Hudson contributes more than $1 billion to the local economy through job creation, tax revenue, and investments in infrastructure.

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