Attached and below is proposed guest editorial that I am submitting on behalf of State Senator George Maziarz who Chairs

the State Senate Committee on Energy and Telecommunications. The Senator has been reading about some of the controversy about the merger, and in his role as Chair of the Committee that oversees the utility companies in the Senate, he felt compelled to weigh in. In looking at the press coverage, and letters the editor that have been available locally, it appears that most sentiment is running in opposition. The Senator view could offer some balance. Senator Maziarz represents the 62nd Senate District that encompasses all of Niagara and Orleans Counties and part of Monroe County. Matt Nelligan, Director of Operations and Public Policy Senator George Maziarz

Central Hudson-Fortis Merger is good for economy, good for jobs and good for customers Charting a course for New York States energy industry that is both reliable and affordable is a demanding challenge, one that requires vision, courage and common sense. As the chairman of the New York State Senates Energy and Telecommunications Committee, I daily consider public policy decisions that must balance affordability with the support necessary to properly incentivize such important goals as renewable energy, economic development and infrastructure investments. In my role, I have had a chance to read the documents associated with the proposed merger of Fortis and Central Hudson Gas and Electric. My analysis has lead me to the conclusion that the Department of Public Service has, over the last year fully vetted this process and that the merger should go forward. Let me be clear, that I do not come to this decision lightly. In fact, I have had areas of disagreement with Central Hudson in the past. One clear example happened last year, when I strongly disagreed with the utilitys efforts to limit customers access to net metering. I filed comments with the Public Service Commission in opposition and currently carry a bill to raise these caps in statute.

When it comes to the facts behind this merger however, the benefits clearly outweigh any risks and I have concluded that the joint proposal is good for ratepayers and that many if not all of the objections that have been raised are either based on a faulty premise or motivated by political concerns. Simply put, without this agreement (which will retain Central Hudson as a local utility with protections for its customers and employees), local homeowners and businesses will not receive an estimated $50 million in benefits. In fact, without this agreement, customers will face nearly $40 million in expenses that Fortis is offering to pay for -- costs associated with operating expenses such as post-storm service restoration, including that for Superstorm Sandy. Facts are facts and the benefits of this transaction are many: a rate freeze between June 2013 and June 2014; additional performance requirements for both electric and gas systems; support for lowincome customer programs; opportunities to increase retail access participation; funds to spur economic development within the region; a commitment to continue Central Hudsons strong support of civic activities; an increased number of local residents on the Board of Directors; the willingness of the Fortis organization to invest capital to improve the electric and natural gas systems; strong support for Governor Cuomos Energy Highway infrastructure priorities; the elimination of costs associated with being a publicly held company; and many more. Fortis is not the first foreign corporation to purchase a New York State utility; in fact National Grid and Iberdrola now operate utilities in the state and those acquisitions proceeded largely without incident. A comparison of the community benefits offered in those transactions and this one, show that they are at least equivalent and in some cases better. One charge that I have heard leveled against this merger needs to be addressed head on-namely that there is not enough support for renewable energy programs associated with this acquisition. Ive always considered past performance to be the best predictor of future behavior. Currently, 1,400 solar installations are operating or pending in Central Hudsons service territory; the Mid-Hudson Valley leads New York in

the total number of solar installations, with Ulster, Dutchess and Orange counties having the third, fourth and fifth highest concentrations, respectively. No wonder the Solar Electric Power Association has named Central Hudson among the top utilities nationally since 2007 for its support of renewable energy. And Fortis has pledged to continue this support for renewable energy projects. Please allow me to correct several errors of fact that have been circulated: To raise the issue of the North American Free Trade Agreement is inappropriate, as Central Hudson would continue to be regulated by the New York State Public Service Commission; in fact (not fantasy), NAFTA does not undermine the Commissions authority whatsoever. To suggest that jobs are at risk is nonsense. Fortis has committed to retaining all employees. Fortis, like Central Hudson, benefits from the talents of the International Brotherhood of Electrical Workers. All provisions of Central Hudsons existing labor agreements will be honored, and all future agreements will be negotiated by the local management team that has negotiated them for decades. To state that customers will bear the cost of this transaction is wrong; shareholders of CH Energy Group and Fortis will pay all transaction costs associated with the merger Please take time to review the Joint Proposal agreed upon by the Staff of the Department of Public Service, the companies involved and other parties to the case following a year of exhaustive review and analysis; you can find it on the PSC and Central Hudson websites. Informed, sensible people should support this transaction, which is clearly in the best interests of Central Hudson customers.