The most recent electric utility trade report shows Central Hudson Gas & Electric Corporation’s electric bills were lowest in New York state for commercial and industrial customers, and second-lowest for residential customers. The report, issued in October by the Edison Electric Institute (EEI), a nationwide utility trade organization, covers utility electricity prices as of July 2009.
“Central Hudson strives to operate as a low-cost utility, and we continually seek opportunities to reduce expenses while maintaining service levels,” said Carl E. Meyer, President and Chief Operating Office. “We also carefully monitor the energy markets in purchasing electricity and natural gas on behalf of our customers, with the goal of reducing price supply cost volatility.” Purchased electricity and natural gas is sold at cost, without markup, and typically represents about half of a residential customer’s bill.
The EEI report shows Central Hudson’s commercial customers, which include small- and mid-sized businesses, schools, churches and municipal facilities, paid electricity prices that were two-thirds that of the state average, and more than 50 percent less than the New York City metropolitan region. Industrial customers paid less than half the state average and 3.5 times less than the metropolitan region. Residential customers also paid lower electricity prices that were 15 percent below the state average and two-thirds that of the metropolitan area.
With the restructuring of the electric utility a decade ago, Central Hudson became solely a delivery company that purchases energy on behalf of customers who choose not to buy from a competitive supplier. At current commodity prices, electric supply typically represents about 50 percent of a residential customer’s bill, but that percentage can vary based upon the amount of energy supplied and its cost.
“We will continue to search for ways to further contain costs for electric service,” said Meyer. “However, our customers should also be aware that taxes and mandated programs add significantly to their utility bills.”
He pointed out that in 2008, about 25 percent of delivery charges were composed of taxes and surcharges. Recent increases to the MTA tax and the Section 18a charges, used to fund state operating expenses, will add further to customers’ bills.
For example, of the typical monthly residential bill of 500 kilowatt-hours in July, 2009 that totaled $76, approximately $35 was devoted to supply costs, and more than $10 to taxes and surcharges. Approximately $31, or 40 percent, was retained by Central Hudson to operate and maintain the region’s electric infrastructure system and to provide a fair return to shareholders on the investment capital they provided.
“Our customers have told us that they need reliable service at a reasonable price, and these are our priorities,” said Meyer. “Our goal is to better serve our customers cost effectively.”
