PSC Seeking Public Comment on Joint Proposal

UPDATE: 6/28/13-  The Commission approved the sale of Central Hudson to Fortis. Click here for a copy of the press release.

The New York State Public Service Commission seeks public comments on the Joint Proposal regarding the acquisition of CH Energy Group Inc. by Fortis Inc. Opportunities to comment include public statement hearings, which will be held before an Administrative Law Judge.

It is not necessary to be present at the start of the hearing, to make an appointment in advance, or to present written material in order to speak at the hearing. Persons will be called to speak after completing a request card. Comments received via alternative measures, together with all statements transcribed at the public statement hearings, will become part of the record, will be posted for public viewing on the Commission’s website at www.dps.ny.gov, and will be reported to the Commission for its consideration. The hearings will remain open and will continue until everyone wishing to speak has been heard or other reasonable arrangements have been made.

Public Statement Hearings

Wednesday, April 17, 2013

7:00 p.m.

Common Council Chambers
62 Civic Center Plaza
3rd Floor
Poughkeepsie, New York

Thursday, April 18, 2013

7:00 p.m.

Council Chambers
Kingston City Hall
420 Broadway
2nd Floor
Kingston, New York

Background

On April 20, 2012, FortisUS Inc. (Fortis) formally asked the New York State Public Service Commission (Commission) to approve the acquisition of CH Energy Group, Inc (Central Hudson). The petition sought the Commission’s approval of the acquisition of all the outstanding stock of Central Hudson Electric and Gas and hence, indirectly, ownership of Central Hudson.

Summary of Joint Proposal

A Joint Proposal was filed in this case on January 28, 2013. The proposal, which may be accepted, rejected or modified by the Commission, in whole or in part, was signed by representatives of the Department of Public Service Staff; Central Hudson Gas & Electric Corporation (Central Hudson) and its parent company; Fortis, Inc. (Fortis) and its subsidiaries; the New York State Department of State Utility Intervention Unit; Multiple Intervenors; and the Counties of Dutchess, Orange and Ulster.

Under the terms of the Joint Proposal, the indirect acquisition of Central Hudson by Fortis through the merger of Central Hudson’s parent company, CH Energy Group Inc., with a subsidiary of Fortis would be approved subject to a number of conditions. Some of the principal conditions include:

• Financial measures intended to protect the financial integrity and credit standing of Central Hudson

• A freeze on Central Hudson electric and gas delivery rates through July 1, 2014

• A guarantee of $9.25 million in savings to ratepayers over five years

• Provision of $35 million to cover expenses that would normally be included in rates, such as storm restoration costs associated with Superstorm Sandy.

• Establishment of a $5 million Community Benefit Fund for economic development and low income customer assistance programs

• Continuation of customer service, reliability and safety mechanisms with increased negative revenue adjustments for failure to meet targets

• Adoption of provisions to ensure that funds provided in rates for planned maintenance and capital improvements are timely expended

• Establishment of a pilot program to test ideas for economically expanding gas service to new customers

• Assurance of local representation on the Central Hudson board of directors and a requirement that any proposed relocation of Central Hudson headquarters outside the service territory be approved by the Commission

How to Comment on the Case

The Commission seeks public comments concerning the Joint Proposal. Interested members of the public may comment as noted below. Your comments should refer to "Case 12-M-0192– Fortis/Central Hudson Merger."

• Via the Internet or In Writing: Those who cannot attend or prefer not to speak at a public statement hearing may comment electronically to Jeffrey C. Cohen, Acting Secretary, at [email protected] or by mail or delivery to Acting Secretary Cohen at Public Service Commission, Three Empire State Plaza, Albany, New York 12223-1350. Comments may also be entered directly into the case by locating the case via the home page of the Commission’s website, www.dps.ny.gov, and then clicking on the "Post Comments" button located at the top of the case page

•Toll-Free Opinion Line: Another way to submit comments is by calling the Commission’s toll-free Opinion Line at 1-800-335-2120. This line is set up to receive in-state calls 24-hours a day. Callers should press "1" to leave comments regarding "Electric and Gas Issues".

In order to ensure consideration prior to the Commission's vote, comments should be submitted by May 1, 2013. All such comments, together with all statements transcribed at the public statement hearings, will become part of the record, will be posted for public viewing on the Commission’s website at www.dps.ny.gov, and will be reported to the Commission for its consideration.

For more information, or a copy of the fact sheet for this case click here.