New York Commission Orders Central Hudson to Curb Gas Demand, Supporting Clean Energy Transition

The New York State Public Service Commission on July 17 directed Central Hudson Gas & Electric Corporation to implement new measures over the next three years to reduce natural gas usage in its service territory. The order, issued as part of the utility’s final long-term gas plan, requires the company to develop pilot demand response programs and identify at least two locations for non-pipe alternatives, in line with the state’s climate and reliability goals.

Under New York’s gas planning procedures, utilities must submit long-term plans every three years, including at least one scenario that avoids traditional gas infrastructure and quantifies emissions impacts. Central Hudson’s plan incorporated more than 300 public comments and multiple technical stakeholder sessions. The process aims to increase transparency, incorporate independent analysis, and align utility planning with the state’s climate targets.

Commission Chair Rory Christian said the directive ensures safe and reliable service while advancing efforts to combat climate change. To support the review, the commission engaged PA Consulting, whose findings, along with public input, informed staff recommendations adopted by the commission. These include expanding demand response programs for large customers, enhancing benefit-cost analysis, applying optimization models in future scenario planning, and clarifying the coordination of modeling tools.

Central Hudson, headquartered in Poughkeepsie, serves about 90,000 gas and 315,000 electric customers across eight counties of New York State’s Mid-Hudson River Valley. The company joins several others, including Consolidated Edison Company of New York, National Fuel Gas Distribution Corporation, and Orange and Rockland Utilities, whose long-term gas plans have already undergone commission review.

The move supports New York State’s broader climate agenda, which targets an emissions-free economy by 2050 and mandates that at least 35 percent of the benefits from the clean energy transition reach disadvantaged communities. The order reinforces the state’s focus on system reliability while accelerating the shift away from fossil fuel dependence.