Cahill Calls on the Public Service Commission to Extend Public Comment Period in Central Hudson/Fortis Merger

March 19, 2013

(Albany, NY) Assemblymember Kevin Cahill (D – Ulster, Dutchess) issued a letter asking the Public Service for an additional period of at least 90 days be provided for public comment on the acquisition of CH Energy Group, Inc. by Fortis, Inc. and related transactions. His request included scheduling additional public hearings with the principals involved present for direct questioning from members of the public and interested parties.

“Since the original announcement of the proposed acquisition of Central Hudson by Fortis, the news in the service area has been largely controlled through the public relations apparatus of the company,” Cahill said. “That changed a great deal when the recent round of public hearings was scheduled for Kingston and Poughkeepsie.”

The public hearings held on February 21, 2013 laid out specifics of the plan including a proposal to freeze rates, the creation of a community benefit fund, a two year labor freeze, and the writing off of purported storm related recovery costs. In his testimony at the City of Kingston hearing, Cahill urged the Public Service Commission to demand inclusion of stronger ratepayer protections if the transaction is allowed to move forward. He mentioned previous cases where the Consumer Protection Board, the Citizens’ Utility Board and the Public Utility Law Project fought for and won significant concessions for residential and low-income ratepayers.

“Unfortunately those important groups have been dissolved and de-funded, leaving the average citizen without a voice during this process,” Cahill said. Also noted was the fact that Utility Intervention Unit of the New York Department of State issued a statement in support of the merger. “I believe this to be the direct reflection of the lack of staffing that in that office within the Department of State,” Cahill said.

Furthermore, in his latest letter to the PSC he reminded them that Fortis is a Canadian company, and the impact of the North American Free Trade Agreement on this transaction, particularly regarding labor relations, needs to be carefully considered at the highest levels before proceeding down an irreversible course.

“It is apparent that the public is not entirely on board with the proposal as is,” Cahill said. “Residents, county legislators and town board members have voiced their concerns regarding this issue and with good reason. None of the aspects of the agreement can be established as true nor said to be clearly in the public benefit. Therefore, the PSC is legally required to act in the interest of the public to either decide against the plan or at a minimum give everyone more time to make their cases.”

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