COMPANIES

PSC investigates Central Hudson's bill collection practices

John Ferro
Poughkeepsie Journal

The state Public Service Commission has launched an investigation into how Central Hudson Gas & Electric Corp's collects some of its bills.

The PSC's move comes in response to a complaint filed by Nobody Leaves Mid-Hudson, a housing rights organization based in Poughkeepsie.

The complaint alleges Central Hudson transferred debts unlawfully, failed to negotiate deferred payment agreements in good faith, did not follow proper procedures when shutting off power and engaged in racial discrimination.

Nobody Leaves Mid-Hudson says its allegations are based on interviews with 2,000 community residents. The practices, the group says, are in violation of state rules, set forth in the Home Energy Fair Practices Act, that govern the provision of power services to residential customers.

"The claims made by Nobody Leaves Mid-Hudson are without merit," Central Hudson spokesman John Maserjian said. "Furthermore, their complaint does not cite any instances where these alleged claims have taken place."

The PSC announced its investigation in a one-page letter to Central Hudson dated Dec. 29, eight days after the group filed its complaint. The letter advises that the utility and its corporate parents are "on notice" to preserve all relevant documents and electronically stored information. It also details the kinds of records that must be saved.

PSC spokesman James Denn said the letter is a standard course of action "given the nature and the seriousness" of the concerns that have been raised.

"No conclusions," Denn said, "assumptions or decisions have been made regarding either the validity of the allegations or any course of action that might follow."

He declined to give a timeline for the investigation, or detail potential penalties.

"We are excited the PSC has announced an investigation," said Jonathan Bix, executive director of Nobody Leaves Mid-Hudson, "but we are not going to take for granted that a real, thorough investigation — with fitting repercussions — will take place, until we see it."

The complaint summarizes issues raised by its members and describes three examples. It alleges that in one case, power was shut off to a member who was using lifesaving equipment in her home, requiring a trip to a hospital.

The woman is not named in the complaint, but Bix said she is Angela Newman. Newman, a City of Poughkeepsie resident, has spoken against Central Hudson's rate increases at public hearings and other events.

VIDEO: Utility ratepayers sound off at hearing

"Central Hudson will not suspend services for customers who depend on electrically operated medical life-support equipment," Maserjian said. "Their condition must be permanent and certified by a physician."

The complaint also claims black and Hispanic customers disproportionately "face the brunt" of unfair practices.

Maserjian said Central Hudson follows all of the required fair practices and treats all customers fairly, equally and in accordance with the laws.

"We recognize that some families in our region continue to struggle with basic necessities," he said, "and federal and state-funded programs are designed to help these families in need."

He said the utility provides assistance for income-eligible customers, ranging from bill discounts for customers receiving benefits from federally funded programs, to it's Good Neighbor Fund, "a last-resort grant" for customers who have exhausted other forms of aid.

The fund is supported by Central Hudson customers, employees and shareholders and administered by the Salvation Army.

John Ferro: 845-437-4816, jferro@poughkeepsiejournal.com, Twitter: @PoJoEnviro