POUGHKEEPSIE – Shareholders of CH Energy Group Inc. voted overwhelmingly to sell the company to Fortis Inc., Canada’s largest investor-owned distribution utility.

Approximately 92 percent of the shares cast on Tuesday were voted in favor of the transaction during a special shareholders meeting in Poughkeepsie.

Regulatory approvals are required before the deal can be consummated, which is expected in the first quarter of 2013. The transaction must be reviewed by the Federal Energy Regulatory Commission, Securities and Exchange Commission, the US Department of Justice, the Federal Trade Commission and the New York State Public Service Commission.

The merger will allow utility subsidiary Central Hudson to operate as a standalone company, with little change in day-to-day operations. Fortis has committed to retain all employees, and to continue Central Hudson’s support of community organizations.

Fortis has committed to provide more than $20 million in customer benefits over five years once the deal is approved, including $2 million in avoided costs per year; establishment of a $5 million benefit fund to support customer and community outreach programs; an additional $5 million to absorb costs that would normally be recovered in rates from customers; and a one-year rate freeze through July 2014, according to CH Energy Chairman and President Steven Lant.