Fortis buys U.S. utility company

Published on June 19, 2012; Published on June 19, 2012

Topics :: CH Energy Group , Central Hudson Gas Electric , United States

Newfoundland-based utility company Fortis has been approved to buy United States utility company CH Energy Group.

Approximately 92 per cent of CH Energy shareholders approved the purchase, according to a company news release.

The purchase is subject to regulatory approvals, and is expected to close in the first quarter of 2013.

"Shareholder approval is a critical milestone toward completing the transaction," said CH Energy chairman, president and CEO Steven Lant. "The merger will deliver significant value to CH Energy Group shareholders."

The transaction will provide U.S. $65 per share to common shareholders of CH Energy Group, parent company of Central Hudson Gas & Electric Corporation upon closing, according to the company.

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Cold Future

- June 19, 2012 at 14:03:52

Fortis is a private company that must make money to satisfy its shareholders. They cannot set rates or force take or pay contracts on captive NL consumers of electricity to subsidize the rates available from mainland Canada. Fortis unlike Nalcor promoting Muskrat would have to show that a project is enconomically viable and within the best financial inretests of its shareholders.

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Brad

- June 19, 2012 at 13:10:33

I do. Probably because the province owns the hydroelectric resources and would want its own company to develop and sell the power rather than a private company in Fortis..especailly when they are already paying taxes.

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Political watcher

- June 19, 2012 at 12:21:02

Fortis, buying up power companies all over North and Central America; building Hydro Electric dams and not a word on or iota of interest in Muskrat Falls. Does anyone else wonder why?

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- David
  
  - June 19, 2012 at 13:36:10
  
  One reason is because Fortis has a somewhat qualified and competent Board of Directors, unlike NALCOR. But I 'offend' Ms. Dunderdale --- none of them ever ran a beer distribution company. That aside, the generic reason that Fortis or any other company tends to avoid being a business partner with any government is that they make terrible, irrational partners. Newfoundland takes that to a whole 'nuther level of batship crazy.

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