July 30, 2007

Electric Service Program Offering On- and Off-Peak Rates Expanded

 Central Hudson’s optional electric pricing program that allows participating customers who can shift the majority of their electricity use to off-peak hours to save money, has been expanded to include both delivery and supply charges. Previously, on- and off-peak rates were available for electric delivery charges only.

“The optional Time-of-Use Service is for residents who can shift a significant portion of their electricity use to nights and weekends,” said Charles A. Freni, Senior Vice-President of Customer Services. “The program benefits households with higher-than-average energy demands that can consistently use more than approximately 70 percent their total electric needs during off-peak hours.”

Under the Time-of-Use Service, participants are charged a lower rate for electricity used during off-peak hours, when overall demand for electricity is lower, and a higher rate for energy used during on-peak hours. A special meter is installed to measure the time of day electricity is used, and participants pay a slightly higher metering charge.

Statewide Time-of-Use pricing was originally started in the 1980s as a way to curb peak energy use during periods of highest demand. When Central Hudson sold its electric generating plants in 2001 as a result of statewide deregulation, the Time-of-Use on- and off-peak rates were limited only to the delivery portion of bills.

The table below shows the amount of electricity that must be used during off-peak hours under the Time-of-Use Service to break-even with charges under standard electric service, based on electricity prices in effect July 2007:

For example, a resident enrolled in the Time-of-Use Service using 1,000 kilowatt-hours of electricity per month and shifting 68 percent of his or her electricity use to off-peak hours would pay the same amount under the standard residential electric service. Using more electricity during off-peak hours will provide savings as compared to the standard rates, while using less than 68 percent will result in higher charges.

“It’s important to note that these figures are based on supply costs valid only for July 2007, and that changes in market prices for electricity may require higher or lower percentages to be used during off-peak hours in order to realize savings and avoid higher charges,” said Freni.

To illustrate potential savings, again based on prices for electricity in July 2007, a resident using 1,000 kilowatt-hours of electricity per month and shifting 75 percent of his or her usage to off-peak hours will save approximately 4 percent (or about $5) over standard residential rates. If only 60 percent of the usage is shifted to off-peak hours, total charges will be about 4 percent (or about $5) higher than standard residential rates. Potential future savings and costs may vary with changes in market and delivery prices for electricity. “Participants must be conscientious in using energy during off-peak hours, as too much used during on-peak hours, even for a few days a month, can negate any savings, and perhaps result in higher bills than the under standard rates,” said Freni.

Customers may choose one of the three time brackets as their on-peak hours: Monday through Friday, from 8 a.m. to 8 p.m., 9 a.m. to 9 p.m., or 10 a.m. to 10 p.m. Weekends, nights, and six holidays are included in off-peak hours. To enroll, print and mail an application form by logging onto www.CentralHudson.com; click onto “Payment Options” under the Residential section, and then click on “Time-of-Use.” Customers may also receive a form in the mail by calling (845) 452-2700 or 1-800-527-2714. Enrollment will take place at the beginning of a two-month billing cycle, and is subject to Time-of-Use meter availability. More information on the program and rates is available on Central Hudson’s Web site, www.CentralHudson.com.

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