EXHIBIT 99(1)
January 2, 1998
FOR RELEASE: Immediately
CONTACT: Xxxxxx XxxXxxxx, (000) 000-0000
Central Xxxxxx, Parties Reach Revised Settlement Agreement
After several months of renewed negotiations, a revised
Settlement Agreement has been reached between Central Xxxxxx, the
staff of the New York State Department of Public Service and
several parties involved in the Competitive Opportunities
Proceeding being conducted to open the state's electric industry
to competitive forces. The Agreement may be considered by the
PSC at its January 21 session, and if accepted, could become
effective in February 1998.
The three and a half-year accord includes a continuation of
Central Xxxxxx'x rate freeze, which has been in effect for all
customers since 1993; economic development enhancements to create
and maintain jobs in the Mid-Xxxxxx Valley; and a phased-in
program to provide all customers with the opportunity to choose
their energy supplier beginning in 1998. "For more than a year,
we've worked diligently to create a plan which responsibly and
effectively gives residents and businesses of the Mid-Xxxxxx
Valley the ability to select who supplies their electricity. At
the same time, this agreement also protects the best interests of
our customers, our shareholders, and our employees," said Xxxxxx
Xxxxxxx, Assistant Vice President of Cost & Rate and Financial
Planning. "Importantly, it also ensures that Central Xxxxxx will
retain its position as the lowest-cost electric utility in New
York following the four-year transition to a fully competitive
electric market."
According to Upright, among the most significant revised
developments in the Settlement is an agreement that Central
Xxxxxx will place up for auction the Danskammer Generating
Station and its share of the Roseton Electric Generating Station,
with the sale and transfer completed by June 30, 2001. Central
Xxxxxx has maintained the right to bid in the auction. As a
result of the auction process, Central Xxxxxx will have the
opportunity to recover prudently incurred investments made on
behalf of customers to meet their long-term energy needs. The
auction will also provide customer benefits if the auction
results in the sale of assets above their book value as
determined by regulation. An Auction Plan must be filed with the
PSC at least six months prior to the scheduled auction date.
Other key components include a provision to participate in a
statewide program to support public policy initiatives such as
Energy Efficiency and renewable sources for electricity
production; creation of a mechanism for implementing retail
transmission tariffs that have limited application during the
transition period; and a determination that customers
participating in the Company's "Customer Choice Plan for Farmers
and Food Processing Businesses" will do so under terms of the
Settlement Agreement once it becomes effective.
"The Settlement Agreement also lays the groundwork for a new
corporate structure at Central Xxxxxx. On or before June 30,
2001 Central Xxxxxx will establish a Holding Company which will
include a regulated distribution company that will maintain the
system of wires and pipelines which delivers electricity and
natural gas to customers," Upright said. "This company will
continue to reliably and safely deliver energy here in the Mid-Xxxxxx
Valley, and will also provide the services -- such as new
installations, meter reading, and restoration of service
following storms -- for which customers have turned to Central
Xxxxxx for a century," Upright said.
He added that the Holding Company will include unregulated
companies which will provide a variety of new services to
customers within and outside the Mid-Xxxxxx Valley region.
