In a recent government meeting, officials discussed the financial implications of Central Hudson's ongoing billing issues and the utility's rate case, which seeks to determine reasonable costs for providing safe and reliable service. The utility has requested $140 million for electric services and $41 million for natural gas, with expectations to reduce these figures over a ten-month review process.

Key discussions highlighted the significant financial impact of billing system failures, which have cost Central Hudson approximately $62 million over the past four years. This figure includes expenses related to monthly meter readings, negative revenue adjustments, and back billing credits. The utility's earnings have been adversely affected, with returns on equity dropping to about 7.8%, below the industry standard of 9%. For the period from July 2021 to June 2023, electric service returns were reported at less than 7%, while gas service returns were slightly higher at around 7.3%.

Officials also addressed accountability measures for Central Hudson, noting that the Department of Public Service has initiated enforcement proceedings to hold the company responsible for alleged imprudent actions related to its billing system. This includes a civil enforcement proceeding that aims to deter future regulatory shortfalls and ensure compliance with public service laws. The settlement from this proceeding includes substantial financial commitments from Central Hudson, which will be borne by the company's shareholders.

Additionally, customers experiencing issues with the utility have the option to file complaints through the department's consumer complaint process, allowing for individual cases to be reviewed and potentially remedied.

The meeting underscored the delicate balance between setting utility rates and ensuring the long-term safety and reliability of services, emphasizing that underfunding could lead to greater costs and risks in the future.