NYS: Central Hudson aware of problems with new billing system

NYS investigation says Central Hudson was aware of billing problems before new system was launched

For the past year, the heat has been on Central Hudson here in the Hudson Valley, primarily after they spent over $88 million to upgrade their billing system in the fall of 2021. But transitioning to the new system didn’t go as planned, and customers reliant on the gas and electric company were caught in the kerfuffle; sacked with confusing invoices, errant billing and an increase in their bills by as much as 60-percent between August and September of 2021.

What’s worse? Central Hudson was aware of the shortcomings of their new system.

A 62-page report released on Thursday (which can be downloaded as a PDF, here) by the New York State Department of Public Service Office of Investigations and Enforcement stated: In the lead-up to the transition, Central Hudson employees warned decision-makers of deficiencies in training, testing, and overall readiness. Central Hudson pushed employees to meet the transition deadline, and despite significant efforts of those employees, the Company was not ready for the transition. On September 1, 2021 (the go-live date), the system was not only incapable of handling complex billing scenarios, but it also contained hundreds of programming errors and defects that resulted in billing overcharges and delays for thousands of customers. The problems were directly attributable to Central Hudson’s negligence, lack of appropriate training, lack of proper system testing, misuse of resources, and an overall lack of readiness. Central Hudson’s lack of candor regarding the problems only exacerbated the impact of the Company’s failings, resulting in several months of undue hardship for its customers, its employees, and the public at large.

Central Hudson has 30 days to respond to the allegations contained in the report, at which the time the Public Service Commission will consider Central Hudson's defense of its actions and vote on whether to impose fines against the utility or proceed with a prudence review.

On Thursday, Charles A. Freni Jr., President & CEO of Central Hudson, responded, saying: “Technical challenges associated with the implementation of this system have caused undue stress and confusion to some of you. For that, I am deeply apologetic.”