POUGHKEEPSIE – A group of labor and business organizations have joined forces to oppose legislation sponsored by Senator Michelle Hinchey (D-Saugerties) and Assemblywoman Sarahana Shrestha (D, Esopus) that would allow a state takeover of Central Hudson under the Hudson Valley Power Authority (HVPA). The (POP) cited a study commissioned by Concentric Energy Advisors, which estimates that the initial cost of a takeover would be approximately $7 billion as of June 2028, with additional gas-to-electric conversion costs of at least $2.6 to $5.2 billion.
. “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 be every year.”
The POP members are in total disagreement with Shresta’s assessment, saying the takeover costs would be borne by residents and businesses across the region, likely lasting for decades, and would come on top of regular utility bills. An analysis demonstrates customers’ delivery bills could rise by as much as 36 percent as a result of a government takeover of the company. and Central Hudson has repeatedly stated they are 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 Local 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.”
Labor leader Todd Diorio, the Business Manager/Special International Representative of Eastern New York Laborers’ Council, echoed Carroll’s sentiment, saying, “This is an enormous price tag that will ultimately fall on the shoulders of hardworking families,” adding, “Our members are already struggling with inflation and rising costs. Adding billions more in municipalization expenses is simply unacceptable.”
Representing the businesses that are members of the , including Central Hudson, Chamber President Frank Castella said, “Businesses in Dutchess County and across the Hudson Valley cannot afford this kind of financial uncertainty,” while calling the proposal a “a bad deal for everyone.”
“Based off Concentric’s study, Central Hudson looked at the potential impact on customers’ delivery bills,” said Joe Hally, Vice President of Regulatory Affairs. “The increase in delivery bills can be as high as 36 percent, 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.”
“We cannot risk the reliability of our electric grid, nor walk away from the consistent, community-based service we receive from Central Hudson employees, who are out every day ensuring our energy system remains safe and operational,” said Heather Bell, President & CEO of the . “New York State has a critical role to play in regulation and oversight—but operating an electric and natural gas utility is not where the state’s focus should be. Transferring control from an experienced private provider to a government-run model introduces significant uncertainty, and we simply cannot afford to jeopardize service reliability or economic stability in our region.”
The Concentric Energy’s 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.
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