EXHIBIT 99(1)
February 26, 1998
Xxx. Xxxx X. Xxxxx
Secretary
Public Service Commission
of the State of New York
Three Empire State Plaza
Albany, NY 12223
Dear Secretary Xxxxx:
Re: Commission Case No. 96-E-0909
In the Commission's Order Adopting Terms of Settlement
Subject to Modifications and Conditions (Issued and Effective
February 19, 1998), the Commission stated that the Amended and
Restated Settlement Agreement ("revised Agreement") dated January
2, 1998, "...generally offer[s] a sound regulatory framework for
Central Xxxxxx, its competitors, and its customers in the
transition to fully competitive generation and energy service
markets...." The Commission also stated in such Order that it
was "requiring modifications and adding conditions" to the
revised Agreement, which modifications and conditions were
enumerated as items (1) through (10) in such Order. In addition,
the Commission further stated that it adopted "...the terms of
the revised Agreement...subject to the modifications and
conditions [it] enunciated" and incorporated "...the revised
Agreement's terms ...by reference into" the Order.
Furthermore, Ordering Paragraph "3." of the Order (Mimeo, p.
7) provides that Central Xxxxxx:
"...must submit a written statement of
unconditional acceptance of the modifications
and conditions contained in this order,
signed and acknowledged by a duly authorized
officer by February 26, 1998. This
statement, along with substitute language
responding to Appendix C, should be filed
with the Secretary of the Commission and
served on all parties in this proceeding."
In response to these provisions, the signatories to the
revised Settlement submit herewith a document entitled
"Modifications to Amended and Restated Settlement Agreement."
This document reflects the unconditional agreement of the revised
Agreement's signatories to I) the "modifications and conditions"
set forth in the Commission's Order, ii) the provisions of
Appendix B of that Order and iii) to language implementing the
provisions of Appendix C of the Order.
In addition, the Commission's condition (10) states that the
revised Agreement was being adopted "on the condition [that]
Central Xxxxxx agrees to accept the Commission Order, issued June
23, 1997, concerning the farmer and food processor pilot program
(Case 96-E-00948 [sic])." In response to this provision, please
be advised that Central Xxxxxx agrees to accept the Commission
Order of June 23, 1997 in Case No. 96-E-0948 insofar as that
Order is applicable to Central Xxxxxx. In this connection, it is
noted that the revised Agreement contains a Retail Access Program
that will supersede (see, revised Agreement, Part V. C. at p. 33)
the farmer and food processor pilot program of Case 96-E-0948.
In adopting and approving the revised Agreement (with
modifications), the Commission reserved its options in the event
of subsequent judicial action altering a portion of the
agreements. Central Xxxxxx trusts that the Commission accords
the same option to other signatories to the agreements.
Attaining the revised Agreement (and the Modifications
Agreement) was possible because the participants committed
significant resources to discussing, defining and memorializing
mutual objectives and because these agreements contain mutual
concessions and commitments. We are encouraged by the
cooperation shown in developing these agreements that all
participants will continue to implement these agreements in the
same spirit.
Central Xxxxxx'x success as a low cost provider of regulated
utility services has established core values that will guide us
in the transition to competition and continue to be lodestars to
its transition to the new, holding company authorized in the
revised Agreement. In addition to providing the springboard for
continued growth in shareholder value by restructuring Central
Xxxxxx, the adoption of the revised Agreement by the Commission
and of the "Modifications Agreement" by the signatories
establishes a broad and far-reaching program for implementing the
Commission's competitive vision and benefitting consumers in the
Mid-Xxxxxx Valley. Central Xxxxxx looks forward to implementing
the new initiatives with a focus on customer values in a
government-private partnership oriented around market-developed
solutions and innovations.
Very truly yours,
(SGD.) XXXXXX X. XXXXXXX
ARUpright/mag
cc.: All Active Parties In Case No. 96-E-0909
