NewGen Strategies & Solutions recently released a feasibility study of the Hudson Valley Power Authority Act.
The legislation was introduced in the New York state legislature by Assemblymember Sarahana Shrestha and Senator Michelle Hinchey to create a new state corporation, the Hudson Valley Power Authority, to acquire Central Hudson Gas and Electric, one of the six investor-owned energy delivery utilities in the state, and run it as a not-for-profit utility.
The top-level findings of the study are:
• NewGen estimates the purchase price to be $3.5 billion for the purpose of this study
• The Hudson Valley Power Authority will save $15.2 million in Year 1, $116.8 million in Year 20, and $210.5 million annually by Year 30. These are savings that can be passed along to ratepayers, and the estimates take into account start-up costs such as regulatory, legal, and consultant fees.
• These savings represent a 1.9% difference in effective delivery rates in Year 1, and a 12.7% difference in rates by Year 30.
• Cumulatively, these estimated savings add up to $2.9 billion in the first 30 years.
• HVPA would save money by not paying profits to shareholders, issuing cheaper debt, and being exempt from state and federal taxes.
NewGen Strategies and Solutions has done similar studies for the City of Chicago, the City of Boulder, and the City of San Diego, among others.
APPA offers a variety of resources on municipalization on its website.
