The rates on the supply side of your bill are not set by Central Hudson. By default, the rates are set by a wholesale market and Central Hudson simply procures the energy on your behalf. If you subscribed to get energy from a third party—such as from the town’s CCA program or from an ESCO—then those rates are set by them. Central Hudson’s rates are only for the delivery of the energy. These rates are made up of the following costs that are passed onto the ratepayers: (1) the cost of operation, which includes everything from worker wages, interest rates, taxes, new capital projects, and more (2) the profit margin that it’s authorized to collect. Even when you use very little energy, there is a fixed cost attached to your delivery side of the bill to make up for these costs.

In short, the delivery costs are high because that’s where Central Hudson makes profits.

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