25,000 Hudson Valley Customers to Get Cash After Columbia Utilities’ Failure

Columbia Utilities to Pay $1.5 Million Settlement 
The New York State Public Service Commission (PSC) has announced that Columbia Utilities Power, LLC, an energy services company (ESCO) operating in the Mid-Hudson region, will pay $1.5 million to settle claims that it failed to provide low-cost renewable energy as promised. This settlement, approved by an Ulster County Supreme Court judge, will benefit the approximately 25,000 customers impacted by Columbia’s actions in the Hudson Valley.

Why the Settlement Was Reached
In 2021, Columbia entered into multiple electricity supply contracts with 10 municipalities in the Hudson Valley. These contracts were part of a Community Choice Aggregation (CCA) program, where Columbia was contracted to supply 100% renewable energy at a fixed price for three years. However, Columbia failed to meet its commitments, and customers were forced to return to their default utility provider, Central Hudson Gas & Electric, at a higher market rate.

The Financial Impact on Affected Customers
In light of Columbia’s failure to honor the contracts, the PSC took action to protect consumers. The $1.5 million settlement will be distributed to impacted customers, with payouts expected to range from $40 to $50 per customer after legal fees. This decision helps resolve regulatory enforcement actions related to Columbia’s participation in the CCA program.

The Background of the Case
Columbia’s contracts, which were intended to provide affordable, renewable energy, became problematic when the company failed to meet the creditworthiness requirements of the New York Independent System Operator (NYISO). In 2021, NYISO terminated Columbia’s rights to participate in its energy market, ultimately leading to customers losing access to the promised renewable energy rates.

Ensuring Consumer Protection
The PSC’s Chair, Rory M. Christian, emphasized the Commission’s commitment to holding ESCOs accountable and ensuring that energy programs serve consumers effectively. With this settlement, the PSC has reaffirmed its dedication to market transparency and integrity while safeguarding New York residents.