Won’t paying to acquire Central Hudson increase the rates?

No. According to a precursory analysis from Tom Konrad, Ph.D., CFA, a net savings of $45 million is expected for an acquisition cost of $1.26 billion. When the Hudson Valley Power Authority finances debt to acquire Central Hudson, we estimate to see the following:

• Increase in interest payments for issued debt: $52 million
• Savings in taxes and shareholder dividends: $99 million
• Net Savings: $45 million

This includes the following liabilities:

• Refinance current public debt of $494 million at 5.26%
• Assume other liabilities, such as short term debt and accounts payable, at $652 million
  

A more in-depth study is currently being conducted, after which we will have more detailed information.