Acquisition by Fortis, Inc., Through Subsidiaries, of CHEG And, Indirectly, CHG&E
NY-ADR
5/23/12 N.Y. St. Reg. PSC-21-12-00009-P
NEW YORK STATE REGISTER
VOLUME XXXIV, ISSUE 21
May 23, 2012
RULE MAKING ACTIVITIES
PUBLIC SERVICE COMMISSION
PROPOSED RULE MAKING
NO HEARING(S) SCHEDULED
I.D No. PSC-21-12-00009-P
Acquisition by Fortis, Inc., Through Subsidiaries, of CHEG And, Indirectly, CHG&E
PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following proposed rule:
Proposed Action:
The Commission is considering a joint petition for Fortis, Inc., of Newfoundland and Labrador, Canada, to acquire CH Energy Group, Inc. (CHEG) and its subsidiary, Central Hudson Gas & Electric Corporation (CHG&E).
Statutory authority:
Public Service Law, sections 4, 5 and 70
Subject:
Acquisition by Fortis, Inc., through subsidiaries, of CHEG and, indirectly, CHG&E.
Purpose:
Transfer of 100% of outstanding stock of CHEG and, thus, indirectly, ownership of CHG&E to Fortis, Inc.
Substance of proposed rule:
On April 20, 2012, Fortis Inc., a holding company based in St. Johns, Newfoundland and Labrador, Canada, its subsidiary FortisUS, Inc. a Delaware corporation, Cascade Acquisition Sub Inc. (Cascade), a New York corporation and wholly owned subsidiary of FortisUS Inc. (FortisUS), CH Energy Group, Inc., (CHEG), a New York corporation headquartered in Poughkeepsie, New York, and Central Hudson Gas & Electric Corporation (CHG&E), a New York gas and electric corporation and wholly-owned subsidiary of CHEG, filed a petition for approval, pursuant to Public Service Law § 70, of the sale of 100% of the outstanding stock of CHEG to FortisUS and an immediate merger, upon completion of the transaction, of CHEG and Cascade, with CHEG as the surviving corporation. By virtue of the proposed transaction, CHG&E would become, indirectly, a wholly-owned subsidiary of FortisUS and, effectively, of Fortis Inc.
CHG&E, also headquartered in Poughkeepsie, New York, serves about 300,000 electric and 75,000 natural gas customers in New York’s mid-Hudson River area. CHG&E accounts for approximately 93% of the total assets of CHEG. CHEG also owns and operates Griffith Energy Services, Inc., an unregulated subsidiary comprising primarily a fuel delivery business serving about 56,000 customers in the Mid-Atlantic Region. CHEG also owns Central Hudson Enterprises Corporation.
The Public Service Commission may approve or reject the petition, in whole or in part, or modify the proposed terms and conditions of the proposed transaction.
Text of proposed rule and any required statements and analyses may be obtained by filing a Document Request Form (F-96) located on our website http://www.dps.state.ny.us/f96dir.htm. For questions, contact:
Leann Ayer, Public Service Commission, 3 Empire State Plaza, Albany, New York 12223-1350, (518) 486-2655, email: [email protected]
Data, views or arguments may be submitted to:
Jaclyn A. Brilling, Secretary, Public Service Commission, 3 Empire State Plaza, Albany, New York 12223-1350, (518) 474-6530, email: [email protected]
Public comment will be received until:
45 days after publication of this notice.
Regulatory Impact Statement, Regulatory Flexibility Analysis, Rural Area Flexibility Analysis and Job Impact Statement
Statements and analyses are not submitted with this notice because the proposed rule is within the definition contained in section 102(2)(a)(ii) of the State Administrative Procedure Act.
(12-M-0192SP1)
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