Fortis Inc. and CH Energy Group Close Transaction
June 27 2013 - 3:20PM
Business Wire
Fortis Inc. (TSX:FTS) and CH Energy Group, Inc. (NYSE:CHG), the
parent company of Central Hudson Gas & Electric Corporation,
announced completion of the transaction to acquire CH Energy Group
by Fortis today. With the closing, CHG will be delisted on the New
York Stock Exchange, and shareholders will be notified by transfer
agency Computershare with instructions on how to redeem their
shares.
“This is a great day for our customers, employees and our local
communities, and we are excited to become a part of the Fortis
family,” said Steven V. Lant, President and Chief Executive Officer
of CH Energy Group. “Through our association with Fortis, we remain
dedicated to the region we continue to serve, but now as part of a
larger organization with additional resources to better serve our
customers.”
On February 21, 2012, Fortis and CH Energy Group announced a
merger agreement under which Fortis had agreed to acquire CH Energy
Group for $65.00 in cash per share. Shareholders approved the
agreement in June 2012, and subsequently all state and federal
approvals have been attained. The New York State Public Service
Commission issued its order approving the acquisition of utility
subsidiary Central Hudson on June 26, 2013.
Central Hudson, the main business of CH Energy Group, is a
regulated transmission and distribution utility serving
approximately 300,000 electric and 75,000 natural gas customers in
eight counties of New York State’s Mid-Hudson River Valley.
The Commission’s order adopts a Joint Proposal with
modifications and enhancements that provide Central Hudson
customers with nearly $50 million in financial benefits to moderate
future delivery rates, enhance economic development programs and
provide further assistance to low-income families in the service
area. Delivery rates will be frozen for an additional two years,
effectively holding rates constant for the three-year period from
July 2012 through June 2015. All employees of Central Hudson will
retain their jobs for at least four years and an additional 35
highly skilled union positions will be created. Central Hudson will
operate as a standalone company with a newly comprised Board of
Directors with significantly increased local representation, and
will maintain at minimum its current level of community support for
at least 10 years.
For more information on the closing, visit www.FortisInc.com and
www.CentralHudson.com.
About Fortis
Fortis is the largest investor-owned gas and electric
distribution utility in Canada. Its regulated utilities serve more
than 2.4 million customers across Canada and in New York State and
the Caribbean. Fortis owns non-regulated hydroelectric generation
assets in Canada, Belize and Upstate New York. The Corporation’s
non-utility investments are comprised of hotels and commercial real
estate in Canada and petroleum supply operations in the
Mid-Atlantic Region of the United States.
About CH Energy Group
CH Energy Group, a subsidiary of Fortis Inc., is an energy
delivery company headquartered in Poughkeepsie, New York. Its
regulated transmission and distribution subsidiary Central Hudson
serves approximately 300,000 electric and 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
around Albany. CH Energy Group also operates Central Hudson
Enterprises Corporation, 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.
Forward-Looking Statements –
Statements included in this new release 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 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: 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.
CH Energy Group, Inc.Investors:Stacey Renner, (845)
486-5730orNews Media:Denise D. VanBuren, (845) 471-8323
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