Who will pay to buy Central Hudson?

As a public benefit state corporation, the Hudson Valley Power Authority will issue authority bonds to finance the upfront costs of acquiring Central Hudson, including legal costs. After acquisition, it will be authorized to issue tax-exempt authority bonds to run the publicly-owned utility. Revenue from bills people will pay is used to pay back the debt. Central Hudson currently funds 52% of its finances by issuing debt but its cost of operation is higher because, unlike HVPA, it pays high interest rates and its bonds are not tax-exempt. That means the cost of operation for HVPA would be lower, with the savings passed to the ratepayers.

HVPA is not funded with taxpayer subsidies. Authority bonds are not like municipal bonds that need voter approval, and the state or the taxpayers are not liable for HVPA’s debt obligations.