NY Lawmaker Proposes Public Ownership of Central Hudson to Lower Costs
New York residents currently face the fifth-highest residential electricity prices in the nation, a financial burden compounded by proposed state legislation that could establish a brand-new pathway for public utility ownership across municipalities, the Rochester Beacon reported.
State lawmakers and local activists gathered in Rochester last week to discuss acquiring investor-owned utilities through public bond issuances. The organizing event, spearheaded by Metro Justice and Rochester’s chapter of the Democratic Socialists of America, highlighted growing frustration over rising utility rates and energy burdens in urban centers.
Assemblywoman Sarahana Shrestha, a Democrat representing the 103rd District, has sponsored a bill designed to let the state purchase Central Hudson Gas and Electric Corp. The current parent company for the utility is based outside the United States. Under the proposal, the state would issue bonds to buy out the investor-owned utility, with the debt repaid directly by bill-paying customers. Shrestha maintains that eliminating corporate profit motives will ultimately lower utility costs for residents.
Opponents of investor-owned utilities argue that shareholder-driven companies lack public accountability. Proponents of public ownership point out that nearly a third of the country’s 3,200 utility companies are publicly owned and maintain bills that run 13% to 63% cheaper than investor-owned providers. While Shrestha’s bill currently sits in committee and applies strictly to Central Hudson, advocates intend for the measure to serve as a statewide model.
For Rochester, a successful public acquisition could eventually mean bringing Rochester Gas and Electric under county government control. Such a transition would require an exhaustive feasibility study followed by a public referendum.
Local sentiment regarding utility oversight has evolved significantly since 2024. During that year, the Monroe County Legislature voted 16 against to 13 in favor of defeating a proposed $1 million bill to fund a public utility feasibility study for areas served by RG&E. Steve Brewer, then-leader of the Republican caucus in the Legislature, described the public utility proposal as a fantasy.
Affordability concerns have pushed the topic back into active public debate as residents face mounting energy costs. Data from a 2020 study by the American Council for an Energy-Efficient Economy indicates that 29% of households in Rochester are energy-burdened, spending more than 6% of their income on utility bills. This rate places Rochester as the fourth most energy-burdened city in the United States, with high costs falling heavily on low-income and Black and brown communities.
Rate hikes continue to pressure household budgets across the region. In May, the state Department of Public Service commission granted RG&E a temporary rate hike of 2.9% for residential electric bills and 1.2% for residential gas bills. Regulatory officials stated the temporary increase allows the utility to continue investing in grid safety while protecting customers from compounding rate increases. Permanent rate structures remain under consideration.
At the same time, broader state policies contribute to rising electricity bills independently of utility operations. According to the second source, mechanisms driven by the Regional Greenhouse Gas Initiative intentionally increase the cost of fossil-fueled electricity to encourage lower-emission generation. New York recently finalized regulations aligning with RGGI’s third program review, aiming to raise $500 million through carbon allowance auctions while market-clearing prices amplify the overall cost passed on to consumers.
Central Hudson has voiced strong opposition to the legislative push for public acquisition. Meanwhile, supporters like New York City Council member Chi Ossé argue that Shrestha’s bill could serve as a model for municipalities statewide to take control of their utilities.