Fortis Inc. has filed a settlement agreement with the New York State Department of Public Service regarding its acquisition of CH Energy Group Inc. The agreement requires nearly $50 million to fund customer and community benefits, a one-year electric and natural gas customer delivery rate freeze, and other customer protections, including the continuation of CH Energy subsidiary Central Hudson Gas & Electric Corp. as a stand-alone utility company. The staff of the New York Department of Public Service, a group known as Multiple Intervenors and the Utility Intervention Unit of the New York State Department of State were signatory parties to the settlement agreement and recommended approval by the commission.

The agreement is expected to moderate future customer rate increases by providing $35 million to cover expenses that normally would be recovered in customer rates, such as significant restoration expenses related to Hurricane Sandy, the October 2011 snowstorm, Tropical Storm Irene, and other similar expenses.