Government Takeover of Central Hudson Could Spike Customer Bills up to 36%
Study estimates takeover costs at approximately $12.2 billion, including gas-to-electric conversion
For Immediate Release: December 10, 2025
Poughkeepsie, NY —The Protect Our Power Coalition, a group of more than 30 labor and business organizations united to oppose legislation creating a government-run power authority to take over Central Hudson Gas & Electric, today announced the results of a study commissioned from Concentric Energy Advisors. The study 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.
These 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% as a result of a government takeover of the company. However, Central Hudson has stated several times that the utility is 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.”
“This is an enormous price tag that will ultimately fall on the shoulders of hardworking families,” said Todd Diorio, Business Manager/Special International Representative, Eastern NY Laborer’s District Council. “Our members are already struggling with inflation and rising costs. Adding billions more in municipalization expenses is simply unacceptable.”
“Businesses in Dutchess County and across the Hudson Valley cannot afford this kind of financial uncertainty,” said Frank Castella, President of the Dutchess County Chamber of Commerce. “This proposal threatens jobs, economic growth, $60+ million in property tax revenue, and the affordability of living and doing business here. The numbers speak for themselves—this is 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%, 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 Orange County Chamber of Commerce. “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.”
What This Means for Local Residents
If the proposed government-run power authority moves forward, Hudson Valley residents and businesses could face billions in added costs on top of their current utility bills. These expenses would likely be financed through long-term debt, meaning customers could be paying for this takeover for decades. Higher rates would impact household budgets, small businesses, and local economic growth—at a time when affordability is already a major concern.
The 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.
About Protect Our Power Coalition
Protect Our Power is a coalition of labor and business organizations committed to ensuring reliable, affordable energy for New Yorkers and opposing costly government takeovers of private utilities.
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Contact: Katy Zielinski | katy@moxiestrategies.com | 203-819-2595