Central Hudson: Association with Fortis Will Benefit Customers

  Central Hudson: Association with Fortis Will Benefit Customers

Business Wire

POUGHKEEPSIE, N.Y. -- May 04, 2013

CH Energy Group (NYSE:CHG) responded today to the Recommended Decision by
administrative law judges issued on May 3, 2013 on the Joint Proposal to the
New York State Public Service Commission for approval of the acquisition of CH
Energy Group and utility subsidiary Central Hudson Gas & Electric Corporation
by Fortis Inc. The Recommended Decision is available on the Public Service
Commission’s website at www.dps.ny.gov.

The Recommended Decision is an advisory opinion that will be considered by the
Commission in determining whether to approve the acquisition. The Recommended
Decision maintains that without modification of the terms of the Joint
Proposal filed on January 25, 2013, the benefits of the acquisition are
outweighed by perceived detriments remaining after mitigation. Submissions
responding to the Recommended Decision are due by May17,2013 with responses
to submissions due by May 24, 2013.

“We intend to participate together with Fortis in further proceedings and
discussions with the Public Service Commission and other parties to gain
approval of the merger agreement,” said Steven V. Lant, Chairman, President
and CEO of CH Energy Group, parent corporation of utility Central Hudson Gas &
Electric Corp. He noted that while there can be no assurance that such
approval will be granted, Central Hudson believes that the concerns expressed
in the Recommended Decision can be successfully resolved, and that the
transaction is expected to close during the second quarter of 2013.

About CH Energy Group, Inc.: CH Energy Group, Inc. is predominantly a
regulated transmission and distribution utility, headquartered in
Poughkeepsie, NY. Central Hudson Gas & Electric Corporation serves
approximately 300,000 electric and about 75,000 natural gas customers in eight
counties of New York State’s Mid-Hudson River Valley, delivering natural gas
and electricity in a 2,600-square-mile service territory that extends north
from the suburbs of metropolitan New York City 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 energy products and services to approximately 56,000
customers in the Mid Atlantic Region, as well as several renewable energy
investments.

Forward-Looking Statements –

Statements included in this Quarterly Report on Form 10-Q and any documents
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 on the timing and
terms thereof; the impact of delay or failure to complete the proposed Fortis
transaction on CH Energy Group stock price; 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.

Additional Information about the Fortis Transaction and Where to Find It

In connection with the proposed acquisition of CH Energy Group by Fortis, CH
Energy Group filed a definitive proxy statement with the SEC on May 9, 2012,
and has filed other relevant materials with the SEC as well. Investors and
security holders of CH Energy Group are urged to read the proxy statement and
other relevant materials filed with the SEC because they contain important
information about the proposed acquisition and related matters. Investors and
stock shareholders may obtain a free copy of the proxy statement when it
becomes available, and other documents filed by CH Energy Group, at the SEC’s
Web site, www.sec.gov. These documents can also be obtained by investors and
stockholders free of charge from CH Energy Group at CH Energy Group’s website
at www.chenergygroup.com, or by contacting CH Energy Group’s Shareholder
Relations Department at (845) 486-5204.

Contact:

CH Energy Group, Inc.
Investors: Stacey R. Renner, 845-486-5730
Media: Denise D. VanBuren, 845-471-8323
 
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