CH Energy Group, Inc. : CH Energy Group, Inc. : Fortis and Central Hudson File Settlement Agreement

CH Energy Group, Inc. : CH Energy Group, Inc. : Fortis and Central Hudson File
                             Settlement Agreement



                                                                  News Release
                                                              January 28, 2013
                                                   For Release: Immediately
    Contact: CH Energy Group:  Denise D. VanBuren, (845) 471-8323
                  Fortis:  Donna Hynes, (709) 737-2800

             Fortis and Central Hudson File Settlement Agreement
            Includes Substantive Customer Benefits and Protections

(ALBANY, NY) Nearly $50 million to fund customer and community benefits,  plus 
a one-year  electric  andnatural  gas  customer  delivery  rate  freeze,  and 
customer protections,  including  the continuation  of  Central Hudson  Gas  & 
Electric Corporation ("Central Hudson") asastand-alone utility company,  are 
cornerstones of  a  settlement  of  all  issues  among  the  signatories  (the 
"Settlement  Agreement")   filedwith   the  NewYorkState   Public   Service 
Commission (the "Commission") regarding the acquisition of Central Hudson, the
utility subsidiary of CHEnergyGroup, Inc. ("CHEnergyGroup") (NYSE:CHG), by
Fortis  Inc.   ("Fortis")  (TSX:FTS).   Other   signatory  parties   to   the 
SettlementAgreement arethe Staff of the New York State Department of  Public 
Service, Multiple  Intervenors and  theUtilityIntervention Unit  of the  New 
York State Department of  State. The Settlement  Agreement indicates that  the 
acquisition is  in the  public  interest pursuant  to  New York  State  Public 
Service Law, Section  70, and therefore  the aforementioned parties  recommend 
approval of  the Settlement  Agreement by  the Commission.  Support was  also 
received from several counties for the portions of the Settlement Agreement of
relevance to the respective counties' interests. Closing of the acquisition is
now expected  to take  place during  the second  quarter of  2013, subject  to 
receiving approval from the Commission.
"This Settlement Agreement provides multiple  and substantive benefits to  our 
customers and thecommunities we serve," said Steven V. Lant, Chairman of  the 
Board and  President  of CHEnergyGroup.  "The  proposed terms  also  retain 
substantial autonomy for Central Hudson,  allowing us to continue our  mission 
of serving  our  customers  well, while  providing  opportunities  to  improve 
service through  a  close  association  with  the  Fortis  family  of  utility 
companies. We  are pleased  and  excited to  have  reached this  step  toward 
finalizing the transaction with Fortis."
"Fortis worked closely with management of Central Hudson through this thorough
regulatory approval  process  and has  gained  increased knowledge  about  the 
utility's operating philosophy  and the regulatory  oversight requirements  in 
New York State,"  said Stan Marshall,  President andChiefExecutive  Officer, 
Fortis Inc.  "This Settlement  Agreement will  provide tangible  benefits  to 
Central Hudson's customers and will  strengthen the utility's ability to  meet 
the energy needs of its current and future customers."
The Settlement  Agreement  will moderate  future  customer rate  increases  by 
providing $35million to cover  expenses that normally  would be recovered  in 
customer  rates,  forexample  significant  restoration  expenses  related  to 
Superstorm Sandy, the  October 2011  snowstorm and Tropical  Storm Irene,  and 
other similar expenses. Also,  under the terms  of the Settlement  Agreement, 
Central Hudson customers will save a guaranteed $9.25 million over five  years 
resulting from the  elimination of costs  the utility now  incurs as a  public 
company.  Additionally,  the  Settlement  Agreement  requires  that  customer 
delivery rates be frozen until July 1, 2014 and requires the establishment  of 
a $5million Customer  Benefit Fund  for economic development  and low  income 
assistance programs for communities and residents of the Mid-Hudson Valley.
Becoming part of the  Fortis family of utilities,  which currently serve  more 
than two million customers, will  bring benefits to Central Hudson,  explained 
Lant. "Central  Hudson  will  be  in the  position  to  benefit  from  shared 
experiences and knowledge from  other Fortis utility companies,  as all of  us 
seek  to  continuously  improve  our  operations,"  he  said.  "In  addition, 
Fortishas greater  access  to  capital  that  will  enhance  CentralHudson's 
ability to make  significant investments  in the  electric and  gas system  to 
improve customer service and  system reliability, including those  recommended 
in the Governor's Energy Highway initiative."
Central  Hudson  will   continue  to  maintain   its  name  and   Poughkeepsie 
headquarters, as well as  all of its employees  and the utility's  substantial 
civic  and  community  presence  in  theMid  HudsonValley.  The  Settlement 
Agreement also  provides financial  protections for  CHEnergy Group,  Central 
Hudson and  its customers  as  part of  the  larger Fortis  organization,  and 
Central Hudson will  continue to  have annual  independent financial  audits. 
Within one year, the Board of Directors of Central Hudson will transition to a
majority of independent directors, increase members from the Hudson Valley and
New York State, and include representatives from Fortis.
"Fortis remains focused on closing the acquisition and providing the  benefits 
to CentralHudson customers as quickly as possible," concluded Marshall.
The definitive  merger agreement  was announced  between CH  Energy Group  and 
Fortis in February 2012. CH Energy Group shareholders approved the transaction
in June 2012, and several other required regulatory approvals by U.S.  federal 
agencies were  subsequently received.  For more  information and  to view  the 
Settlement Agreement, visit www.CentralHudson.com or www.FortisInc.com.
# # #

About CH Energy Group
CH Energy Group, Inc. is an energy delivery company headquartered in
Poughkeepsie, NY. Regulated transmission and distribution subsidiary Central
Hudson Gas & Electric Corporation serves approximately 300,000 electric and
about 75,000 natural gas customers in eight counties ofNew York State's
Mid-Hudson River Valley, delivering natural gas and electricity in a2,600
square-mile service territory that extends north from the suburbs of
metropolitan NewYorkCity to the Capital District at Albany. CH Energy Group
also operates Central Hudson Enterprises Corporation (CHEC), a non-regulated
subsidiary composed primarily of Griffith Energy Services, which supplies
petroleum products and related services to approximately 56,000 customers in
the Mid Atlantic Region.

About Fortis
Fortis Inc.  is the  largest investor-owned  distribution utility  in  Canada, 
serving more  than 2  million  gas and  electricity customers.  Its  regulated 
holdings include  electric  utilities  in  five  Canadian  provinces  and  two 
Caribbean countries and a  natural gas utility in  British Columbia. It  owns 
nonregulated hydroelectric generation  assets across  Canada and  in Belize  & 
Upstate New York. Italso owns hotels and commercial real estate in Canada.


                          FORWARD-LOOKING STATEMENTS



Statements included  in this  news release  and any  document incorporated  by 
reference which  are not  historical in  nature are  intended to  be, and  are 
hereby identified as,  "forward-looking statements" for  purposes of the  safe 
harbor provided by Section 21E of the Exchange Act. Forward-looking statements
may be identified  by words including  "anticipates," "intends,"  "estimates," 
"believes," "projects," "expects,"  "plans," "assumes,"  "seeks," and  similar 
expressions. Forward-looking statements including, without limitation,  those 
relating to CH Energy Group's and Central Hudson's future business  prospects, 
revenues, proceeds, working capital, investment valuations, liquidity, income,
and margins, as well as the acquisition by a subsidiary of Fortis Inc. and the
expected  timing  of  the  transaction,  are  subject  to  certain  risks  and 
uncertainties that could cause actual results to differ materially from  those 
indicated in the forward-looking statements, due to several important factors,
including  those  identified  from  time   to  time  in  the   forward-looking 
statements. Those factors  include, but  are not limited  to: the  possibility 
that various conditions precedent to  the consummation of the proposed  Fortis 
transaction will not be satisfied or waived, including regulatory approvals of
the proposed Fortis transaction and the  timing and terms thereof; the  impact 
of delay or failure to complete  the proposed Fortis transaction on CH  Energy 
Group's  stock  price;   the  costs  associated   with  the  proposed   Fortis 
transaction; deviations from normal seasonal weather and storm activity;  fuel 
prices; energy supply and demand; potential future acquisitions;  legislative, 
regulatory, and competitive developments;  interest rates; access to  capital; 
market risks;  electric  and  natural  gas  industry  restructuring  and  cost 
recovery; the ability to  obtain adequate and timely  rate relief; changes  in 
fuel supply or costs including future market prices for energy, capacity,  and 
ancillary services; the success of strategies to satisfy electricity,  natural 
gas, fuel oil, and propane requirements; the outcome of pending litigation and
certain environmental matters, particularly  the status of inactive  hazardous 
waste disposal  sites and  waste site  remediation requirements;  and  certain 
presently unknown or unforeseen factors,  including, but not limited to,  acts 
of terrorism. CH Energy Group and  Central Hudson undertake no obligation  to 
update publicly any  forward-looking statements,  whether as a  result of  new 
information, future events,  or otherwise. Given  these uncertainties,  undue 
reliance should not be placed on the forward-looking statements.



For additional information, contact:
CH Energy Group, Inc.                   Media:
Investors:                              Ms. Denise D. VanBuren
Mr. Stacey A. Renner                    Corporate Secretary & VP- Corporate
Treasurer                               Communications
Telephone: (845) 486-5730               Telephone: (845) 471-8323
srenner@cenhud.com                      dvanburen@cenhud.com
Fortis Inc.                             Media:
Investors                               Ms. Donna Hynes
Mr. Barry Perry                         Manager, Investor and Public Relations
Vice President Finance and Chief        Fortis Inc
Financial Officer                       Telephone: (709) 737-2800
Fortis Inc.
Telephone: (709) 737- 2822

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Source: CH Energy Group, Inc. via Thomson Reuters ONE
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