Poughkeepsie, NY - Today, a broad coalition of local economic development groups, chambers of commerce, and labor unions announced the launch of the Protect Our Power Coalition, an alliance dedicated to protecting ratepayers, jobs, and communities from the harmful consequences of a government takeover of Central Hudson.
Legislation recently introduced in Albany would authorize the creation of a Hudson Valley Power Authority (HVPA) to take over Central Hudson as a government-run utility. Advocates for the bill claim this would make energy more affordable.
However, there is no clear evidence that demonstrates government-run utilities are cheaper or more efficient than private utilities, and the costs of purchasing Central Hudson’s infrastructure through eminent domain would likely fall on customers and increase rates.
Even beyond the billions needed just to purchase Central Hudson, a government-run utility would bring additional risks that could leave customers paying even more in the long run.
The Hidden Costs of a Government-Run Utility
“The Hudson Valley Power Authority’s proposed takeover poses a significant threat to these workers and their families. It is not an appropriate solution to the complex issues facing our region. A government takeover gambles with reliability, resiliency and safety. When storms strike, trained and experienced crews are crucial for prompt and effective response. A new bureaucracy, lacking in experience, would hinder this crucial function. The disregard for safety, and the potential impact on workers’ livelihoods and our communities is deeply concerning,” said Steve Carroll, President & Business Manager for the International Brotherhood of Electrical Workers, Local 320, which represents employees at Central Hudson.
“There is no evidence that a government takeover of Central Hudson will lower energy costs. History shows the opposite: political control of public authorities results in poorer service and unchecked bureaucracy. If this takeover happens, millions of dollars in property taxes that Central Hudson pays every year will be put in jeopardy. That money supports our schools, fire districts, and municipalities. Without it, taxpayers will be left holding the bag, or our communities will face painful cuts,” said Heather Bell, President & CEO of the Orange County Chamber of Commerce.
“A government takeover of Central Hudson through the creation of a Hudson Valley Power Authority fails to address the real issues: the high cost of power production and the urgent need to expand generation capacity in NY State, along with the ever-increasing programs and mandates from Albany that force utilities like Central Hudson to become collectors of revenue for a variety of state programs. This legislation misplaces the blame and risks destabilizing a system that is already working well on the distribution side, while doing nothing to solve the root problems,” said Frank M. Castella, Jr. President & CEO, Dutchess County Regional Chamber of Commerce.
“Our members are already battling higher costs. Replacing a proven utility with an untested authority is a risky experiment that could raise rates, threaten good-paying union jobs, and destabilize local budgets that rely on Central Hudson’s tax contributions. The Hudson Valley can’t afford uncertainty. We need pragmatic solutions that protect customers, workers, and reliability," said Ward D. Todd, President, Ulster County Regional Chamber of Commerce.
“While this legislation may be well-intentioned, it falls short of establishing a long-term plan to ensure regular maintenance and the necessary capital improvements to keep our energy system reliable. It lacks the details needed to reassure Hudson Valley residents and businesses that safe, dependable energy will continue. Pixie dust and good intentions belong in fairy tales—not in energy policy. Our members don’t just work here; they live here and raise their families here. They expect safe, reliable energy and a partner committed to making the investments required to maintain and strengthen our infrastructure,” said Daniel Ortega, Community Affairs, Engineers Labor-Employer Cooperative ELEC 825.
“Politicians have no business running our power grid. When politics gets in the way of critical infrastructure, it’s working people and everyday families who pay the price. A state takeover of Central Hudson would kill good union jobs, stall investment, and put reliability and public safety at risk. The politicians pushing this takeover promised lower bills, but they couldn’t deliver—and they stripped that false claim out of their own bill. What they’re not telling you: this scheme would rip more than $60 million a year out of our schools, our towns, and our emergency services. Our communities can’t afford it,” said Todd Diorio, President, Hudson Valley Building and Construction Trades Council, Chairman of New York State Laborers’ PAC and Special International Rep.
“For more than a century, Central Hudson has proudly powered the homes and businesses of the Hudson Valley. Our mission has always been to deliver safe, reliable, and affordable energy — guided by engineering expertise, operational excellence, and a deep commitment to the communities we serve. While we respect the role of government in shaping energy policy, we believe that the delivery of energy should remain rooted in technical rigor, safety, and service; not driven by political agendas or short-term promises. A government-led takeover introduces unnecessary risk and uncertainty at a time when our communities need stability and sustained investment in modern infrastructure,” said Stephanie Raymond, President and CEO of Central Hudson.
“Any promised benefits of a government-run takeover of our utilities will be few and likely never be achieved. A government-owned utility is not incentivized to make proper infrastructure investments. We need to look no further than the institutions that run our subways, trains and state roadways, like the Metropolitan Transportation Authority and NYS Department of Transportation, for evidence that another government organization operating our electric grid will result in devastating consequences for everyone,” said John Cooney, Jr., Executive Director of the Construction Industry Council of Westchester & Hudson Valley.
“The HVPA is a costly gamble that jeopardizes jobs, schools, and reliable service in the Hudson Valley—we cannot afford to lose what Central Hudson has built over the past 125 years. Ulster Strong stands with our partners in labor, business, and community leadership in opposing the HVPA. This proposal is unrealistic, unaffordable, and threatens the very foundation of what makes the Hudson Valley thrive—good jobs, dependable service, and strong local communities. For 125 years, Central Hudson has powered our region, investing in our workforce, supporting our schools and first responders, and serving as a committed neighbor. We cannot risk replacing that legacy with an experiment that puts our economy, safety, and future at risk,” said Meagan Bianco, Ulster Strong, Community Engagement Director.
“Manufacturers across the Hudson Valley depend on a reliable, affordable grid to keep people working and products moving out the door. A forced government takeover would jeopardize reliability, saddle families and employers with billions in new debt, and rip tens of millions in local tax revenue out of our communities and the schools that develop our future workforce. Let’s strengthen the system we have—not gamble with jobs, paychecks, and reliable energy service," said Harold King, President, Council of Industry.
“The IBEW Local 363 stands firmly against the recent proposal for a government takeover of Central Hudson. While we respect the intent, a publicly run utility would lack the necessary experienced workforce and ultimately become a costly burden to consumers. Central Hudson’s employees have a proven track record of reliable service. Replacing that expertise with a public system that lacks the same qualified workforce would not only risk service quality but also drive up costs in the long run. Customers will end up paying more as the state struggles to fill the gap in skills and experience. Instead, we strongly advocate for strengthening our existing delivery system and experienced workforce,” said Sam Fratto, Business Manager, IBEW Local 363.
About the Protect Our Power Coalition
The Protect Our Power Coalition is a partnership of local economic development groups, chambers of commerce, labor unions, and community advocates working to keep energy in the Hudson Valley affordable, reliable, and accountable. Coalition members include Orange County Chamber of Commerce, International Brotherhood of Electrical Workers, Dutchess County Chamber of Commerce, New York State Business Council, Construction Contractors Association, Construction Industry Council of Westchester & Hudson Valley, Edison Electric Institute (EEI), Ulster County Chamber of Commerce, Utility Workers Union of America, The Council of Industry, Hudson Valley Building & Construction Trades Council, and Ulster Strong.