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TOP STORY: SHAREHOLDERS SUPPORT MERGER
eBills Billing by email can earn you $2,012. Enroll today »	Volunteerism Central Hudson honors five. Who they are »	Financing Pay for upgrades on your utility bill. New program »	Cooling 500+ old AC units recycled at events. Rebates available »	NYS Grid Utilities assess system in STARS. Recommendations »
ALSO: President's Q&A | Summer Safety | Reliability Measure | 10 Great Online Resources

Central Hudson poised to merge with Fortis

Central Hudson's parent company and Fortis Inc., the largest investor-owned distribution utility in Canada, have announced an agreement to merge. The proposal was overwhelmingly approved by shareholders in June with approximately 92 percent of CH Energy Group, Inc. shares cast in favor of the union.

As part of the proposal, the companies have jointly offered the potential for at least $20 million in overall benefits for the customers and communities Central Hudson serves. Some of the proposed benefits customers could expect to see from the deal include:

• A Central Hudson rate freeze until July 2014.
• A $5 million community benefit fund, pledged by Fortis devoted to broad community interests, such as economic development, energy efficiency and low-income programs.
• $5 million from Fortis to absorb costs that would normally be recovered in rates from Central Hudson customers.
• An estimated $10 million in reduced operating costs over five years that Central Hudson now incurs.

Central Hudson will remain a standalone utility that joins the Fortis federation of utility companies. Its headquarters will remain in Poughkeepsie, and its substantial civic presence will continue throughout the Hudson Valley.

"We believe this transaction is good for our shareholders, customers and employees alike," said Steven V. Lant, Chairman of the Board and Chief Executive Officer of CH Energy Group, parent company of Central Hudson.

“Central Hudson represents for us a strong first step in the regulated U.S. electric utility marketplace," said H. Stanley Marshall, Fortis President and CEO. "We look forward to welcoming Central Hudson employees to Fortis and to serving its communities with the same level of dedication that we provide to the 2 million gas and electricity customers already served by our existing Canadian utilities.”

All collective bargaining agreements will be honored and there are no plans to reduce the size of the workforce. Customers will not pay for any costs associated with the transaction.

Both companies have longstanding reputations as excellent corporate citizens and Fortis has committed to maintain Central Hudson’s support of local community organizations.

Click here for more news about this transaction

Q: How will the proposed merger with Fortis impact Central Hudson customers?

A: Central Hudson customers can expect to see significant benefits from the proposed union with Fortis Inc.

The proposal calls for a Central Hudson rate freeze until July 2014 and offers $20 million in additional customer and community benefits.

We believe that through joining Fortis, Central Hudson will also reap sustained, long-term benefits such as having greater access to capital, lower operating costs and a position to improve as a company through shared knowledge with Fortis' other utility companies.

Start to receive your Central Hudson billing notifications electronically with eBills during the summer of 2012 and you could win $2,012. Enroll by Sept. 14 and you will be entered into a random drawing for $2,012 in cash.

With eBills you will receive email reminders each time your bill is ready including the amount due, date due and an optional link to log in to review and pay online.

Other reasons to join the tens of thousands of Central Hudson customers who receive their bills electronically:

• It's green: Paper billing in the United States alone requires an estimated 16.5 million trees per year. Online billing eliminates the need for those resources
• It's convenient: Receive, view and pay your bill online. No more searching for stamps. Fewer trips to the post office. We'll send you an e-mail when your bill is ready.
• It's flexible: If you find eBills doesn't suit your lifestyle, you can go back to getting a paper bill from Central Hudson at any time.

» Enroll for your chance at $2,012   |   Complete contest rules

Central Hudson honors five volunteers

Winners of Central Hudson's 23rd Annual Community Service Awards are, from left: Darlene Clay, Customer Choice Coordinator; Robert Miller, Gas Mechanic; Teresa Leske, Customer Account Services Supervisor ; Steve Burger, Manager of New Business Development & New York State Governmental Affairs; and Tim Hayes, Manager of Transmission & Distribution Operations and Emergency Response.

Building beds, fighting fires and teaching children – just some of the things Central Hudson employees were recognized for at the company's 23rd Annual Community Service Awards Dinner.

“It’s no secret that this is one of my favorite events, because it captures the essence of what Central Hudson is known for – citizenship,” said Chairman, President and CEO Steven V. Lant, during the ceremony.

This year's five honorees, who join 110 previous Community Service Award winners since 1988, are:

• Steve Burger – Transformation Life Center
  Steve was recognized for his work with Transformation Life Center’s Build a Bed Campaign. TLC teaches life-changing skills to men with substance abuse issues through a six-month residency program. A total of $20,000 was raised under Steve’s leadership, which resulted in a safe and secure environment for 40 residents.
• Darlene Clay – Hudson Valley Knights
  Darlene is the president of the Hudson Valley Knights Basketball Club and also coaches two seventh-grade teams. As president, she handles the administration of the organization, which includes 130 girls and 10 coaches. As coach, Clay is responsible for teaching young ladies the fundamentals of being successful on and off of the court.
• Tim Hayes – Mid-Hudson Civic Center
  Tim has been a member of the Board of Directors of the Mid-Hudson Civic Center since 2007 and is the Chair of its Building Committee. With the 15,475-square-foot space of the Civic Center’s Mair Hall comes significant maintenance issues. Tim has overseen projects with building contractors to ensure the Civic Center gets the promised value for the repairs that are made. He has applied his knowledge and expertise of energy and lighting to his volunteer work.
• Teresa Leske – Silver Starlites Baton Twirling Team
  Teresa has served as the Silver Starlites’ president for the last three years. Since taking the helm, she has turned the team into a nonprofit organization and enrollment has increased 100 percent. Under Teresa’s watch the Silver Starlites began hosting a New York State Baton Twirling Championship each year. This event has grossed over $10,000 for the group which funds participation in other events and scholarships for team members.
• Robert Miller – Kiskatom Fire Department
  Robert began his volunteerism with the Kiskatom Fire Department in the town of Catskill in 1986. Currently serving as chief of the department, Robert is responsible for organizing and coordinating all of the fire calls. He spends time training recruits, mentoring, coordinating fire drills, attending commission meetings and organizing fire training.

You can now make qualified energy efficiency improvements with a low-interest loan that you can repay through your Central Hudson bill.

To qualify for this new program being offered by the New York State Energy Research & Development Authority (NYSERDA), residents must first have a home energy audit performed by an accredited contractor, certified by the Building Performance Institute (BPI) and approved by NYSERDA. The contractor will provide an audit report that outlines energy efficiency recommendations, including estimated costs and payback times.

If the energy audit indicates measures that would also qualify under Central Hudson’s energy efficiency programs, customers may also receive rebates associated with those improvements. Visit SavingsCentral.com to learn about Central Hudson’s incentives, which include rebates of up to $600 on high efficiency heat pump and air conditioning systems, $600 on home sealing and up to $700 on replacement natural gas heating systems.

Both homeowners and owners of buildings with one to four residential rental units may participate, and applicants must meet NYSERDA credit standards. A homeowner is eligible to finance up to $25,000 if the payback period for the energy efficiency investment is 15 years or less, and up to $13,000 if the payback period is longer.

» NYSERDA's On-Bill Financing Web Page

Central Hudson held two Air Conditioner Turn-In Events in May at which 523 old, inefficient air conditioners were collected from local residents.

Customers who turned in their old air conditioners during the events in Kingston and Poughkeepsie received a rebate good for $50-100 on the purchase of a new, Energy Star-rated model, which use as little as half the energy of the older units.

If you missed these events, you can still get a $50-100 rebate by turning in your old air conditioner in at one of three participating Sears stores (in Newburgh, Poughkeepsie and Kingston) to be recycled. You can purchase your new air conditioner anywhere you like, not just at a Sears store.

From the two turn-in events alone, more than 20,000 pounds of metal, plastic and other materials will be properly recycled while environmentally harmful oils and refrigerants contained within the old air conditioners will be safely disposed of, and nearly 10 tons of greenhouse gas emissions will be avoided.

Obtain more information about all of Central Hudson's energy efficiency rebate programs at www.SavingsCentral.com.

COOL SAVINGS

Air-source
heat pumps
Up to $600
Like central air conditioners, central air-source heat pumps provide cooling in the warmer months. They have the added benefit of efficient heating during the fall and spring. Ductless heat pumps also qualify. You must use a Savings Central Trade Ally for installation for this rebate.

Central air conditioning
Up to $600
This rebate is for residential electric customers who upgrade with energy efficient central air conditioners. Rebate levels are contingent upon the unit's level of efficiency. Consult the rebate form for specific levels. For this rebate you must use a SavingsCentral Trade Ally for installation.

STARS report reveals NYS grid analysis

Phase II of the New York State Transmission Assessment and Reliability Study (STARS) was released this spring. The report outlines electric transmission projects that can bolster the power grid, provide economic benefits, support development of renewable resources and ensure a robust power system for all New Yorkers.

“The aim of the joint study is to help meet future electricity needs, ensure the long term reliability of the power system, reduce congestion in the electric transmission system and support the state’s public policy goals, including the growth of renewable energy sources,” said James P. Laurito, STARS Chair and President of Central Hudson.

The state’s interconnected bulk power system is owned by six separate transmission owners, all participants in the STARS initiative:

• Central Hudson Gas & Electric Corporation
• Consolidated Edison Company of NY, Inc. / Orange & Rockland Utilities Inc.
• Long Island Power Authority
• National Grid
• New York Power Authority
• New York State Electric & Gas Corporation / Rochester Gas and Electric Corporation

“The projects identified in the STARS report will provide real benefits to New York electricity consumers, including improved reliability; reduced congestion to allow for greater electricity transfer capability across the state; increased deliverability of wind generation from upstate; environmental benefits; and increased economic development in the form of thousands of jobs created, property tax revenue, and increased regional gross domestic product,” Laurito said.

Click to see the report, its specific findings and recommendations

	Outdoor Electric Work Plug outdoor appliances into outlets with a “ground fault interrupter,” or GFI outlet. Never use electric power tools in the rain or when the ground is wet, and keep radios and televisions away from swimming pools, spas, running hoses and other sources of water. Use a qualified tree trimmer to do any pruning or perform other work in areas where limbs or vegetation are growing in and around overhead lines and other electrical facilities, and make sure Central Hudson is contacted before any cutting, trimming or pruning is undertaken.
	Swim Safely. Avoid Shock. Central Hudson technicians respond to calls every summer involving customers experiencing electric shock in or near their swimming pools. Swimming pool motors and filters must be properly grounded. Having them installed only by a licensed, professional electrician ― and checked regularly ― will help ensure your safety. Remember, never build a swimming pool, shed or any other structure beneath a power line or anywhere on a utility right-of-way, including the line that leads to your home or building. Be extra careful if there are overhead electric lines above or near your pool and you use long-handled tools to work on it.
	Dig Safely Before you dig or drill into your property you must call the Dig Safely hotline at 811 so Central Hudson, municipalities and other utilities can mark out their underground facilities. Failure to make this call at least two, but no more than ten, full working days ahead of time can lead to severe or even fatal injury to yourself and others. Failure to schedule a mark out can also result in civil penalties and you may be held liable for damages to underground facilities and other property. For more information, and for a free Excavator Manual, contact Dig Safely: New York, or log onto www.digsafelynewyork.com.

» Safety Section of CentralHudson.com

Did you ever come home to find your digital clock's display blinking at you? Usually that blinking merely indicates that a momentary interruption, designed to prevent a longer, more serious power outage, has occurred.

For public safety and the protection of our electric system, Central Hudson installs devices which can briefly interrupt the flow of electricity through our power lines. This is sometimes necessary, for example, when a falling tree limb contacts a power line. Special sensors will detect it and shut off the power for a brief instant to let the object clear safely.

Most people wouldn't notice such a short interruption, but many of today's electronic appliances are very sensitive to these minor fluctuations in power supply and they react to the slightest disturbance. That's why your digital clocks may flash.

To avoid disruptions to digital appliances - particularly more critical equipment, such as computers - many people have provisions for a battery back-up. An inexpensive Uninterruptible Power Supply (UPS) may be purchased at electronics stores.

So, the next time you see your clock 'winking' at you, don't be alarmed. It just means that Central Hudson's system is working for your safety and protection, around the clock.

» More on how Central Hudson works to minimize outages

10 useful online energy resources

SavingsCentral.com Visit Savings Central for information about Central Hudson's array of rebate offerings available to help pay for energy-efficiency upgrades for your home.

EEI's 'More Than 100 Ways to Improve Your Electric Bill' This booklet from the Edison Electric Institute covers every aspect of your home and the energy you use and it offers practical ideas that can greatly increase your energy efficiency and decrease you energy bills.

ESFI The Electric Safety Foundation International is a nonprofit organization "dedicated exclusively to promoting electrical safety in the home, school, and workplace."

Energy.gov News and information straight from the U.S. Department of Energy regarding government involvement in topics such as energy research, innovation and security.

EEI's 'Key Facts About the Electric Power Industry' This colorful booklet from the Edison Electric Institute provides an informative and easy-to-understand guide to the electric power industry. It includes explanations on how the system works and key issues shaping its future.

Kids Corner The Kids Corner section of Central Hudson's website has fun games and activities to teach kids all about the science and safe use of energy. A great resource to enhance summer learning.

Green Car Reports A leading source for consumers to obtain news and analysis on plug-in electric vehicles, hybrids and other information related to the most efficient transportation options on the market.

Utility Service Interruptions: What You Should Do This brochure from the New York State Public Service Commission provides important tips to help you be prepared in the event of a power outage.

EPRI The Electric Power Research Institute is an independent, nonprofit organization that conducts R&D relating to the generation, delivery and use of electricity. This site offers a high-tech look at major issues involving the energy the world depends upon.

EnergyStar.gov The Energy Star website has a vast amount of information to help individuals go green including efficiency tips, federal financial incentives and much more.

Produced by the Corporate Communications Division
Central Hudson Gas & Electric Corp.
284 South Avenue
Poughkeepsie, NY, 12601
www.CentralHudson.com

Send questions and comments about PowerTalk to ptesoro@cenhud.com or chayes@cenhud.com.