KINGSTON – A feasibility study into if the Hudson Valley Power Authority Act could create a new not-for-profit entity to take over the operations of investor-owned Central Hudson says it is possible.
NewGen Strategies & Solutions released its finding on Wednesday saying it would cost the new state authority $3.5 billion to acquire the utility.
The measure is being sponsored by State Assemblywoman Sarahana Shrestha (D, Esopus) and Senator Michelle Hinchey (D, Saugerties).
Shrestha said such an acquisition there would be substantial savings to the operation and its ratepayers.
“If you would do that, even accounting for startup costs like no regulatory costs, legal costs, consulting fees, HVPA would save $15.2 million in the first year, and that is assuming all of the money Central Hudson already wants to spend to these recent rate cases, but then the savings would every year,” she said. “So, by year 20, we would see an annual savings of $116.8 million. By year 30, we would see $210.5 million, and cumulatively in the next 30 years, if we were to buy this today, we would see a savings of $2.9 billion.”
Meanwhile, Central Hudson dispute that saying a regulated independent utility model is the best decision for the Hudson Valley community. It said the model ensures access to private capital, regulatory oversight, and innovation and resilience.
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