Fortis Inc. Responds to Recommended Decision in Respect of CH Energy Group,
ST. JOHN'S, NEWFOUNDLAND -- (Marketwired) -- 05/04/13 -- Fortis Inc.
("Fortis" or the "Corporation") (TSX:FTS) responded today to the
recommended decision issued on May 3, 2013 by administrative law
judges in connection with the Corporation's joint proposal to the New
York State Public Service Commission (the "Commission") (the
"Recommended Decision") for approval of the Corporation's previously
announced agreement to acquire CH Energy Group, Inc. ("CH Energy
Group") (the "Acquisition"). The Recommended Decision is available on
the Commission's website at www.dps.ny.gov.
The Recommended Decision asserts that without modification of the
terms of the Settlement Agreement filed on January 28, 2013, the
benefits of the Acquisition are outweighed by perceived detriments
remaining after mitigation. The Recommended Decision is an advisory
opinion that will be considered by the Commission in determining
whether to approve the Acquisition. Submissions responding to the
Recommended Decision are due by May 17, 2013 with responses to such
submissions due by May 24, 2013.
Fortis intends to engage in further discussions to obtain the
Commission's approval of the Acquisition, although there can be no
assurance that such approval will be granted. Fortis expects the
Commission to issue its decision in June 2013.
The definitive merger agreement for the Acquisition was announced in
February 2012. CH Energy Group shareholders approved the Acquisition
in June 2012, and several other required regulatory approvals by U.S.
federal agencies were subsequently received.
Fortis is the largest investor-owned distribution utility in Canada,
serving more than 2 million gas and electricity customers. Its
regulated holdings include electric distribution utilities in five
Canadian provinces and two Caribbean countries and a natural gas
utility in British Columbia, Canada. The Corporation owns
non-regulated generation assets in Canada, Belize and Upstate New
York. It also owns hotels and commercial real estate in Canada.
Additional information can be accessed at www.fortisinc.com or under
Fortis' issuer profile at www.sedar.com.
Fortis includes forward-looking information in this press release
within the meaning of applicable securities laws in Canada
("forward-looking information"). The purpose of the forward-looking
information is to provide management's expectations regarding the
Acquisition and the expected timing and benefits thereof, the
Corporation's future growth, results of operations, performance,
business prospects and opportunities, and it may not be appropriate
for other purposes. All forward-looking information is given pursuant
to the safe harbour provisions of applicable Canadian securities
legislation. The words "anticipates", "believes", "budgets", "could",
"estimates", "expects", "forecasts", "intends", "may", "might",
"plans", "projects", "schedule", "should", "will", "would" and
similar expressions are often intended to identify forward-looking
information, although not all forward-looking information contains
these identifying words. The forward-looking information reflects
management's current beliefs and is based on assumptions developed
using information currently available to the Corporation's
management. Although Fortis believes that the forward-looking
statements are based on information and assumptions which are
current, reasonable and complete, these statements are necessarily
subject to a variety of risks and uncertainties. For additional
information on risk factors that have the potential to affect the
Corporation, reference should be made to the Corporation's continuous
disclosure materials filed from time to time with Canadian securities
regulatory authorities and to the heading "Business Risk Management"
in the Corporation's annual and quarterly Management Discussion and
Analysis and the "Risk Factors" section of the Annual Information
Form. Except as required by law, the Corporation undertakes no
obligation to revise or update any forward-looking information as a
result of new information, future events or otherwise after the date
Mr. Barry Perry
Vice President, Finance and Chief Financial Officer
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