KINGSTON/POUGHKEEPSIE – Nobody spoke in favor of the proposed merger between Central Hudson and Canadian utility conglomerate Fortis, during two hearings held by the Public Service Commission on Thursday in Kingston and Poughkeepsie.

Fortis US was created for the purpose of making Central Hudson a wholly owned subsidiary of Fortis. The company, which has energy holdings throughout Canada and the Caribbean, seeks a foothold in the American energy market.

Assemblyman Kevin Cahill (D-Kingston) offered strong comments against the acquisition, claiming the financial numbers involved don't make sense. Central Hudson is being courted for $1.5 billion in cash – one third of that is debt. 

Domestic industry experts confided to Cahill that, at the stated price, it would be impossible to provide the same level of service without increasing rates, he said. "Unforeseen circumstances," Cahill observed, are a frequent excuse employed by power companies to justify rate hikes.

Cahill also slammed the $50 million community benefit incentive package, calling it "a pittance." He noted that the promise of rate freeze through 2014 amounts to nil, since Central Hudson is already locked into current rates for that period.

International NAFTA treaties can make regulation difficult, Cahill added.

The foreign outsourcing factor struck a chord with many opponents, who argued that New York's utility grid should remain under local – or at least American – control.  

"This is a good company, let's keep it local," urged Poughkeepsie resident Constantine Kazolias. “If these guys at the top cannot live with all the dividends, there is something wrong with them because they are selling the people out that made this company great.".

Karl Bunman, who owns stock in parent company CH Energy Group, said he was offered $65 per share by Fortis. Bunman indicated the only benefit he sees to the proposed merger is multi-million dollar bonuses for utility executives. 

If the deal goes through, all shares of Central Hudson would be owned by Fortis. The Public Service Commission reserves the power to approve or deny the acquisition in whole or in part, adding any terms and conditions that it sees fit.