CASE 96-E-0909

Some excerpts from this case:

In the Matter of Central Hudson Gas & Electric Corporation's Plans For Electric Rate/Restructuring Pursuant to Opinion No. 96-12. JOINT PETITION FOR AUTHORITY TO TRANSFER GENERATING FACILITIES.

"The new owner would be encouraged to continue all reasonable informal land use arrangements. As to property taxes, Central Hudson and the Town of Newburgh reached a three-year property tax settlement prior to the date of issuance of the FSGEIS." on Feb 23, 2000.

"Under the APSA, Dynegy assumes the obligations the Cotenants incurred in settling their property tax dispute with the Town of Newburgh. Through the settlement, taxes are gradually reduced at the facilities during a reasonable transition period, a benefit to Dynegy. This approach to property taxes is reasonable. Central Hudson will continue to own the real property underlying its Roseton switchyard, a separately-taxed parcel."

"prior to changing or terminating any land use, the new owner should notify all affected individuals or communities, either directly or by publication, and
provide an opportunity to discuss reasonable alternatives."

"As to potential impacts on the local tax base, the APSA provide that Dynegy will assume the current settlement agreement with the Town of Newburgh. As discussed in the
FSGEIS, the existence of this agreement obviates the need for specific mitigation measures. However, Dynegy is encouraged to utilize the Department's voluntary mediation program to resolve any disputes that may arise with the local community over a longer-term agreement."

APSA: Asset Purchase and Sale Agreement

FSGEIS: Final Supplemental Generic Environmental Impact
Statement.

New owner: Dynegy