Assemblymember Jonathan Jacobson (D-104) and Senator Michelle Hinchey (D-41) passed two major utility reform bills to bring more transparency in rate hike requests and restrict estimated billing.

The first bill (A2736/S8213) requires that any capital expenses included in a utility’s request for a rate increase are fully and publicly explained. This would include the purpose and cost of the capital project, as well as any benefits to ratepayers. Because utilities receive a greater rate of return on capital expenditures, it is critical that these costs be disclosed to regulators in a transparent and complete manner.

The second bill (A5969/S2182) requires utilities to bill customers based on actual monthly meter readings, rather than estimates, unless prevented by unavoidable circumstances like extreme weather. It also directs the Public Service Commission (PSC) to develop a standard estimation formula for all New York utility providers.

“Central Hudson rates are high enough. Since utilities receive a greater return on capital expenses than on other expenses, transparency is essential for the PSC to make a proper determination on a rate increase request. The public and the PSC deserve to know,” said Jacobson. “Customers deserve timely and accurate billing. Our previous legislation, which is now law, eliminated late billing. Now, we want to eliminate estimated billing.”

“Our legislation addresses two of the biggest questions we hear from Hudson Valley residents: Why did my bill go up, and does it actually reflect what I owe?” said Hinchey. “Utilities are a public service, and the costs they pass on to ratepayers must be transparent, reasonable, and connected to serving their customers. These bills bring commonsense oversight into capital expenditures proposed by utilities and their billing practices, and we hope the Governor will sign both into law to help us protect ratepayers.”

Both bills are another step in Jacobson and Hinchey’s fight against Central Hudson’s never-ending rate increase requests and controversial billing practices. The disastrous rollout of a new billing and customer service system in 2021 led to a cascade of customer issues, including wildly inaccurate and missing bills.

These problems didn’t stop Central Hudson from making repeated requests for rate increases, including a 25% increase request in 2024. The PSC instead approved a 5% increase that went into effect in July 2024. Soon after this was approved, Central Hudson proposed another increase. In August, the PSC approved an increase of more than 10% for electricity and more than 20% for gas over a three-year period.

The bills are awaiting the Governor’s signature to become law.