In a decisive move, Governor Kathy Hochul has inked a new law to reshape how utility companies handle billing, a direct response to the prolonged billing turmoil faced by Central Hudson Gas & Electric in the Hudson Valley.
Why the Change?
Prompted by the Central Hudson billing debacle, the law carries significant implications. It mandates that utility companies bill residential and commercial customers within three months of service usage, disallowing any payment requests beyond this period. Additionally, bills must comprehensively detail the prior 13 months of usage charges.
Legislative Architects
Crafted by State Senator Michelle Hinchey and Assemblyman Jonathan Jacobson, the legislation directly reacted to the widespread issues encountered by thousands of customers following Central Hudson's introduction of an error-ridden billing system in September 2021.
Central Hudson's Late Billing Woes
The law focuses on Central Hudson's alarming practice of tardy bill dispatch. Customers faced the staggering scenario of receiving multiple months' worth of bills on a single day, with payment expectations by the end of that billing cycle.
Audit Findings
A state-ordered audit of Central Hudson concluded in April and revealed a troubling pattern. When customers received invoices for multiple service periods simultaneously, they were frequently charged at the prevailing electric rate rather than the rate applicable when the electricity was consumed. This became particularly problematic in early 2022 when electricity prices experienced significant fluctuations due to external factors, including Russia's invasion of Ukraine.
Financial Impact and Back-Billing
Assemblyman Jacobson highlighted the new three-month billing window as a financial incentive for utilities to issue timely bills. The law addresses what Sen. Hinchey deemed "predatory" back-billing practices. These practices, where customers are simultaneously presented with several months' worth of bills, create financial chaos for families and small businesses. This unpredictability makes budgeting nearly impossible.
Overcharging Woes
Beyond late billing, many Central Hudson customers found themselves overcharged. Automatic electronic payments led to large sums being withdrawn at once. Notably, Newburgh's mayor experienced a staggering $708,000 withdrawal from his account in a single day due to an overcharge on a residential service account. While over $707,000 was credited back the following day, the lack of an explanation perplexed customers.
Transparency Measures
The law's insistence on detailing 13 months of prior usage charges directly responds to these overcharging incidents. This transparency allows customers to scrutinize their bills and identify instances of overcharging, providing them with a tool to hold utility companies accountable.
The Importance of Legal Assistance
As affected customers navigate these billing challenges, seeking legal help becomes crucial. Legal professionals can guide understanding of the new law, ensure compliance, and pursue resolutions for discrepancies in past billing practices. If you've been impacted by utility billing issues, consulting with a legal expert is the next step toward securing your financial rights.
For legal assistance and guidance on utility billing matters, contact [local legal services](#). Your financial rights matter!
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