Mr. Barry Perry reports

FORTIS INC. RESPONDS TO RECOMMENDED DECISION IN RESPECT OF CH ENERGY GROUP, INC. ACQUISITION

Fortis Inc. has responded to the recommended decision issued on May 3, 2013, by administrative law judges in connection with the corporation's joint proposal to the New York State Public Service Commission for approval of the corporation's previously announced agreement to acquire CH Energy Group Inc. The recommended decision is available on the commission's website.

The recommended decision asserts that without modification of the terms of the settlement agreement filed on Jan. 28, 2013, the benefits of the acquisition are outweighed by perceived detriments remaining after mitigation. The recommended decision is an advisory opinion that will be considered by the commission in determining whether to approve the acquisition. Submissions responding to the recommended decision are due by May 17, 2013, with responses to such submissions due by May 24, 2013.

Fortis intends to engage in further discussions to obtain the commission's approval of the acquisition, although there can be no assurance that such approval will be granted. Fortis expects the commission to issue its decision in June, 2013.

The definitive merger agreement for the acquisition was announced in February, 2012. CH Energy Group shareholders approved the acquisition in June, 2012, and several other required regulatory approvals by U.S. federal agencies were subsequently received.

We seek Safe Harbor.