Josh Riley

U.S. Rep. Josh Riley is suing New York's Public Service Commission, claiming the state regulators failed to consider the $100 million in profits Central Hudson Gas and Electric’s owners took in when they approved three years of rate hikes last year.

The lawsuit filed in state Supreme Court in Columbia County says ratepayers deserve refunds for monthly rate hikes of $18 more for electricity and $31 more for gas approved by the Public Service Commission, or PSC, in August.

It urges the court to scrutinize a state regulatory system tilted in favor of Central Hudson’s Canada-based owner, Fortis.

“Unlike the utility monopolies, everyday Upstate New Yorkers don’t have armies of lawyers and lobbyists to push their agenda, and they don’t have the slush funds to dole out corporate PAC checks to the politicians who write the rules,” the lawsuit writes, referring to political action committee funding.

It’s believed to be the first time a federal lawmaker has intervened in a utility rate case in his official capacity, a Riley spokesperson said. The PSC declined to comment on the merits of the litigation.

"The rate case that is the focus of Representative Riley’s legal action is a formal, public process to determine the delivery charge amounts for electricity and natural gas utility service, and more than 40 parties participated in that public proceeding," the PSC said in a statement. "The final rates approved by the Commission were much less than what Central Hudson initially proposed."

Riley, a Democrat, is facing reelection in November for a 19th District seat he claimed in 2024 by defeating Republican Marc Molinaro. His Hudson Valley district includes about 100,000 of Central Hudson’s 400,000 gas and electric customers.

The lawsuit taps into widespread ratepayer frustration with Central Hudson and other state utilities, which have sought rate hikes to cover upgrades to aging wires and poles to guard against climate-related storms occurring with greater frequency.

What Central Hudson says about congressman's lawsuit

Central Hudson spokesman Joe Jenkins said the utility has invested over $720 million in its Hudson Valley infrastructure between 2017 and 2024, noting the company did not contribute to Fortis’ shareholder dividends.

“We share the congressman’s commitment to addressing energy affordability,” Jenkins said March 19.

“That is why members of Central Hudson’s leadership met with him and other representatives today in Washington, D.C., to discuss long‑term strategies aimed at making customer bills more stable and less volatile," Jenkins added, noting currently, "more than 58 cents of every dollar customers pay goes toward state taxes and policies, as well as to third‑party suppliers that provide electricity and natural gas.”

The lawsuit asks the court to vacate the PSC order approving the rate increases, asserting that regulators failed to conduct the proper legal analysis. And it demands refunds equal to the difference between the rates paid and what ratepayers would have paid if the order was not approved.

NY utility ratepayer frustration climbing

The level of discontent has deepened over the last year. Over 400,000 households in New York had their gas or electric service terminated for failing to pay their bills last year, surpassing totals from the Great Recession. Some 1.3 million New Yorkers were behind at least two months on their bills at the end of the year with debt totaling $1.845 billion.

“Everywhere I go, I hear from folks being crushed by rising utility bills,” Riley said in a statement.

“While Upstate New Yorkers are struggling to keep the lights on, corporate monopolies are raking in record profits,” Riley added. “Enough is enough.”

A 2025 analysis by several clean energy groups found that five of the state’s major gas and electric utilities increased their profits by 63% over the past decade, taking in a combined $3.17 billion in profits in 2024. Central Hudson’s profit soared from $45.6 million in 2015 to $90.5 million in 2024, the report noted.

Gov. Kathy Hochul was among those who criticized the PSC decision to approve Central Hudson rate hikes in August. “This is no time for bonuses and big raises for executives, especially if they are going to be looking to raise rates on their customers,” she said.

Riley, a Harvard Law School grad and onetime federal appeals court clerk, is representing himself in the litigation.

This story has been updated with additional information

Thomas C. Zambito covers energy, transportation and economic growth for the USA TODAY Network’s New York State team. He’s won dozens of state and national writing awards from the Associated Press, Investigative Reporters and Editors, the Deadline Club and others during a decades-long career that’s included stops at the New York Daily News, The Star-Ledger of Newark and The Record of Hackensack. He can be reached at [email protected]