Could a utility owned by the public, rather than Central Hudson, deliver lower electricity costs?

Many people believe it would, and last year, two state legislators introduced a proposal to make it happen by creating the Hudson Valley Power Authority. The bill outlines the process by which the state would create a "democratically governed" nonprofit corporation that would provide "low rates, reliable service, correct and easy to understand bills, clean energy, community benefits and environmental justice." The goal would be to keep residential electric bills from exceeding 6 percent of household income.

It would not be the first public utility, even in New York. Along with the state-owned New York Power Authority and the Long Island Power Authority, there are at least 50 municipal utilities in New York, mostly in rural areas. For the rest of the state, the delivery of electricity is monopolized by six investor-owned utilities such as Central Hudson, which has been owned since 2013 by Fortis, a Canadian holding company. In return for their monopolies, these utilities are regulated by the Public Service Commission, which must approve rate hikes and capital projects.

Establishing the Hudson Valley Power Authority would not only lower rates but coordinate with the state's long-term climate goals while protecting Central Hudson's 1,130 employees, according to the two Democratic legislators who introduced the proposal, Sen. Michelle Hinchey (whose district includes parts of Dutchess and Putnam counties) and Assembly Member Sarahana Shrestha (whose district includes the northwest corner of Dutchess). "I don't think the role of government is to empower the private sector," Shrestha said. "This would put public goods back in the hands of the public."

How it could happen

Shrestha and Hinchey's legislation calls for the Hudson Valley Power Authority to purchase Central Hudson and take control of a system with 315,000 electric customers and 90,000 natural gas customers in parts of nine counties, including Dutchess and Putnam. If Central Hudson refused to sell, the legislation suggests authorities could use a legal process called eminent domain to compel a sale.

Tom Konrad, a chartered financial analyst who is the chair of the Marbletown Environmental Conservation Commission, is leading a plan in the Ulster County town - the Hudson Valley's first - to transition to 100 percent renewable energy. He estimates that it would cost between $2.2 billion and $3.6 billion to acquire Central Hudson, including its $1.4 billion in debt.

The Hudson Valley Power Authority (HVPA) would be overseen by a nine-member board appointed by the governor and the Legislature, which would also include the business manager of the International Brotherhood of Electrical Workers Local 320, the union representing about 700 Central Hudson employees.

In addition, an independent "observatory" modeled after the Paris Water Authority and composed of elected representatives and members of academic institutions would help the board with "community participation, transparency, research and accountability," Shrestha said.

The newly formed utility would retain Central Hudson employees represented by labor unions and assume those agreements, including retirement benefits. After buying Central Hudson, the HVPA would be obligated to bargain "in good faith" with union representatives.

The bill also aligns the HVPA with the goals of the state's Climate Leadership and Community Protection Act, directing the utility to procure 70 percent renewable electricity by 2030 and 100 percent renewable electricity by 2040, provided the supply is available.

At least 35 percent of the benefits of clean energy and efficiency programs, such as reduced pollution through the phasing out of fossil fuel-burning plants, would be allocated to disadvantaged communities within the service area.

Shrestha doesn't expect either Senate Majority Leader Andrea Stewart-Cousins or Assembly Speaker Carl Heastie ...