KINGSTON – Opponents of the planned takeover of Central Hudson parent company CH Energy Group by Fortis, Inc., a Canadian holding company, laid out their case before the court of public opinion even as attorneys in the case filed their final legal arguments. Citizens for Local Power, a group organized to forestall the merger that has brought the issue to town boards throughout the region, including the Rondout Valley, held a press conference in Kingston which included Skype interviews with Fortis customers in Belize and British Columbia, none of whom had a kind word for the company. Speakers also included the attorney who is mounting the challenge, and a CH Energy Group shareholder who has submitted a resolution against the deal.

Jen Metzger, the former Rosendale supervisor candidate speaking for Citizens for Local Power, explained why concern about the merger manifested so late in the process, causing the Public Service Commission to extend deadlines for public comment.

"It was only in January that details became available, and when we looked into it we saw huge deficiencies in this deal."

Among those shortfalls, the group counted insufficient guarantees against rate increases and for the preservation of local jobs, as well as concerns over the implication that the North American Free Trade Agreement could be used to short-circuit the PSC's authority once the deal was sealed.

Fortis and Central Hudson spokespeople have said on numerous occasions that they would not seek to challenge any PSC ruling through NAFTA arbitration, but have never specifically said that they can't do so.

Environmental concerns have been raised over the Chalillo Dam, which Fortis built in Belize. Cathy Gonzalez from the Belize Institute for Environmental Law and Policy spoke via Skype about how Fortis handled those concerns.

"We were told that all dams have cracks," she said was the response when they raised questions about the dam's integrity. Papers submitted regarding its construction misled officials about the location of fault lines and the type of rock upon which the dam would be built, she said.

Further, it was alleged that the company signed a "secret agreement" to guarantee itself rate increases and no taxes for many years, even while lobbying against cheap and available power from Mexico. The Challilo Dam's construction required the flooding of some ten square kilometers of rainforest.

From British Columbia came reports that Fortis misled residents there about the viewshed impact of a transmission line it sought to build. When the 45-mile line replaced existing equipment, the utility poles were more than twice the height of what was expected by the residents of Heritage Hills, ruining a lovely view and reducing property values as a result. Resident Harry Levant called it a "gross misrepresentation."

Questions were also raised about the steps taken to ensure Central Hudson's independent management, such as the "golden share." That's a share of stock with enough voting power to, for example, prevent a vote in support of filing bankruptcy. Typically, such a share is held by a government entity that has the public's interest in mind, although it isn't clear who the holder would be in this case.

Opponents claim that Fortis is generally opposed to such strategies, and again, that the existence of NAFTA may thwart the intended protections.

New Paltz resident Karl Budmen filed a resolution with the Securities and Exchange Commission asking that the merger not be approved, saying, "It's not a merger, it's a buyout." In his explanation, Budmen pointed out that when such agreements are presented to the shareholders, it is done by a board of directors vested in the idea, who always recommend a yes vote. What wasn't clear to them at the time of the vote, Budmen explained, is that "this agreement forces shareholders to sell."

The group won a round when a panel of judges recommended recently that the Public Service Commission put this merger on ice, but ultimately the agency will make that call when it rules.

That decision could come as soon as June 13.