On June 20, 2024, the New York State Department of Public Service (“DPS”) reached a settlement agreement (the “Settlement Agreement”) with Central Hudson.
The Settlement Agreement resolves the alleged violations arising out of N.Y. Public Service Commission’s (“PSC’s”) Order to Commence Proceeding and Show Cause issued December 15, 2022 in Case 22-M-0645, which concerned the question of prudency in connection with the adoption of the SAP billing system upgrade (the “Prudency Case”). The Settlement Agreement provides for several monetary components, but does not directly resolve or compensate Central Hudson’s customers’ individual complaints.
The consumer class action lawsuit—which remains pending—seeks to compensate Class members for the injuries alleged in Plaintiffs’ Complaint, measured by, among other things, the direct economic damage inflicted on Class members by Central Hudson, and/or by the amount of fees and profits Central Hudson collected from consumers in excess of what it was authorized to collect. See Walker, et al. v. Central Hudson Gas & Electric Corp., Index No. 2023-50074 (Dutchess Co. Sup. Ct., Dec. 20. 2023). On December 20, 2023, the Court issued a Decision and Order, denying Defendants’ Motion to Dismiss and staying the case during the pendency of the Prudency Case. Id at NYSCEF No. 26. The Parties will be providing an update to the Court on or before August 16, 2024.
Please continue to visit our firm’s website to view periodic updates on the case.
To learn more about other ongoing consumer protection investigations, please visit this link.