Columbia Utilities will pay $1.5 million to Hudson Valley taxpayers

ALBANY — Columbia Utilities Power LLC, an energy services company in the mid-Hudson Valley, will pay a $1.5 million settlement for failing to deliver the low-cost renewable energy it had promised its customers.

Approximately 25,000 affected taxpayers in the cities of Beacon and Poughkeepsie; the cities of Clinton, Marbletown, Philipstown, New Paltz, Red Hook and Saugerties; and the villages of Cold Spring and New Paltz will participate in the financial settlement, the state Public Service Commission said in a statement. Each client will receive $40 to $50 after legal fees.

The discount was approved by state Supreme Court Justice David M. Gandin on Dec. 4 in Ulster County.

In 2021, Columbia Utilities Power entered into three-year contracts to provide renewable electricity to 10 Hudson Valley municipalities under a community choice aggregation plan called Hudson Valley Community Power. A CCA plan allows local governments to purchase electricity for their residents and businesses from an alternative supplier.

Under the contract, Columbia was required to offer a fixed price from July 1, 2021, to June 30, 2024 — a rate that was 35 percent cheaper than the standard rate at the time for local utility Central Hudson. CCA was managed by Joule Assets, a Westchester-based company that brokers renewable energy for customers across the country.

But a year after the contract was signed, Joule and the 10 municipalities joined together to sue Columbia for breach of contract, saying the company “wrongfully abdicated” its obligations when it tried to terminate contracts early and transfer customers back to Central Hudson.

“This violates Defendants’ agreements and governing regulations, creating immediate, irreparable and long-lasting harm to customers and municipalities (some of which are also customers).” process is read.

The state Public Service Commission also stepped in to seek compensation for affected taxpayers.

In July 2022, the New York Independent System Operator — the nonprofit organization charged with operating and managing New York’s electric grid — terminated Columbia’s rights to participate in the state’s market following Columbia’s failure to post approximately $3.5 million in collateral to comply with NYISO creditworthiness. requirements. Columbia customers returned to Central Hudson at a higher rate, according to the PSC release.

Columbia, which is based in Brooklyn, remains in business in New York state after the deal. The company has denied that it has violated any law or its contractual obligations or that it has committed any of the wrongful acts alleged in the lawsuit.

“When a company (energy service company) breaks its promises, the Commission will take swift action to protect customers,” PSC Chairman Rory M. Christian said in the statement.

Customers who have participated in CCA can learn more about settlement and select payment options at the address cupccaprogramsettlement.com.