A feasibility study conducted by NewGen Strategies & Solutions finds that the Hudson Valley Power Authority Act (A2127 | S2026), a state legislation that would replace Central Hudson Gas and Electric and run it as a not for profit state corporation, is legally sound and will save money from the acquisition alone. Specifically, it estimates:

The purchase price to be $3.5 billion, which is the assumed price for the purpose of this study. The acquisition will save $15.2 million in Year 1, $116.8 million per year by Year 20, and $210.5 million per year by Year 30. These are savings that can be passed along to ratepayers, and the estimates take into account start-up costs such as regulatory, legal, and consultant fees.

Overall, these savings represent a 1.9% difference in effective delivery rates in Year 1, and a 12.7% difference in rates by Year 30. Cumulatively, the savings add up to $2.9 billion in the first 30 years. These savings come from not having to pay profits to shareholders, issuing cheaper debt, and being exempt from state and federal taxes.

NewGen is a management and economic consulting firm specializing in serving the utility industry and market. We provide financial, valuation, strategy, expert witness, stakeholder, and sustainability consulting services to energy, water, wastewater, and solid waste clients across the country. Our expertise includes municipalization feasibility studies, litigation support in state and federal regulatory proceedings, valuation of utility property, business and financial planning, and strategic planning and wholesale and retail rate development for electric, water, wastewater, solid waste, and natural gas utilities.

NewGen has provided feasibility study reports to a wide range of clients, including for the City of San Diego, California; the City of Clearwater, Florida; the City of Chicago, Illinois; and others. Based on this experience, the NewGen team is well qualified to conduct feasibility studies and prepare feasibility study reports.