Utility considers reducing estimated billing
Central Hudson Gas & Electric Corp. said Tuesday the company is examining the possibility of reducing the amount of times estimated billing is done.
In a statement, the utility said it is currently studying ways to cut back on estimated bills.
“We have heard our customers’ concerns on this issue and are in the preliminary stages of evaluating pathways to potentially reduce the frequency of estimates on customer bills,” the company said in response to an inquiry from the Freeman “We understand that more recently, billing estimates have become a source of stress and confusion for our customers — especially during this time of heightened energy market volatility.”
In 2016, Central Hudson said it was required to move to monthly billing. Prior to that, meters were read and bills were sent every other month.
“To avoid the cost impact to customers that would have resulted from reading meters every month, Central Hudson and regulators agreed to estimate bills every other month,” the statement said. “These estimates are based on seasonal trends and previous consumption at that location. Actual meter reads are made the following month and the data pulled from the meter is used to reconcile, or true up, customer accounts from the estimated month.”
There are other reasons why estimated billing is done, Central Hudson said.
“There are also instances where customers receive an estimate on their bill due to other factors, like an inability to access the meter by the meter reader,” the utility said.
The company said estimates are generated using several factors, including time of year and previous consumption. Customer use can change from year to year, however, the utility added.
“A number of factors like the installation of energy-efficient appliances can reduce usage while adding a member to the household can increase it,” the utility said. Other variables like weather patterns that bring abnormally warm or cold temperatures that exceed historic norms can have a significant effect on usage, it said.
Still, the company said, the utility’s costs for monthly bills will increase.
“There are significant costs associated with transitioning away from bimonthly estimates — either via technology or additional manpower — and we want to ensure we’re meeting our customers’ needs in a financially responsible way. We are in the early stages of this process, so we don’t yet have a time frame for when any changes would take place.”
Meanwhile, state Sen. Michelle Hinchey, D-Saugerties, a Central Hudson critic, said a bill she sponsored would require the utility to stop the estimated billing practice unless meters can’t be read.
“My bill to ban estimated billing passed the Senate unanimously last year but did not make it through the Assembly, and it is among my top priorities to get it passed through the full legislature this session to protect peoples’ wallets and bring transparency to the utility industry as a whole in New York,” Hinchey said in a statement. “What we know, based on the lived experiences of thousands of constituents here in the Hudson Valley, is that utility companies are using proprietary estimation formulas that are clearly not based on previous usage, making it impossible for everyday New Yorkers to afford their bills.”
In December, Hinchey said she had introduced a bill that would curb the frequency by which utility companies across the state could send out estimated bills to their electric customers. According to Hinchey’s office, that bill has now been revised to include an outright ban on the practice unless a meter can’t be reached.
“At a time when prices are skyrocketing, people need to be able to budget, not have their savings unexpectedly drained by overinflated utility bills,” Hinchey said.
In the meantime, if customers want to avoid bimonthly estimates, they have the option of submitting their own meter readings, although the readings must be submitted no more than two days prior to their scheduled reading. The date can be found in the bill summary section of their most recent bill. Visit cenhud.com for more information on submitting readings.