EXHIBIT 99 (i) 6



                                     Filed Session of February 29, 2000
                                                 Approved as Recommended
                                                    and so Ordered

                                                   By the Commission
                                                --------------------------
                                                       DEBRA RENNER
                                                    Acting Secretary

                                    Issued & Effective March 7, 2000

                              STATE OF NEW YORK
                         DEPARTMENT OF PUBLIC SERVICE


                                                February 18, 2000


TO:   THE COMMISSION

FROM: OFFICE OF ACCOUNTING & FINANCE

SUBJECT:    CASE   96-E-0909  -  Petition  of  Central  Hudson  Gas  &  Electric
            Corporation   for   Commission   approval  to  Amend  the  Rate  and
            Restructuring  Plan  Adopted  in Case  96-E-0909,  Order  issued and
            effective February 19, 1998.

RECOMMENDATION:  Staff recommends that the proposed amendment
                 and conforming revision be approved.

(S.A.P.A. 96-E-0909SA5)

Summary

            Central Hudson Gas & Electric Corporation (Central Hudson) has filed
a petition  requesting  Commission  approval of an  amendment  and a  conforming
revision to the Rate and Restructuring Plan (Restructuring Plan) adopted in case
96-E-09091.   Central  Hudson's  proposed  amendment  eliminates  an  unintended
disincentive  for the formation of its holding  company prior to the sale of its
fossil generation. The revisions provide clarification and enable Central Hudson
to proceed with its restructuring  plans while maintaining  authority granted by
the Commission to invest

--------
      1 Case 96-E-0909, In the Matter of Central Hudson Gas &
        Electric Corporation's Plans for Electric Rates and
        Restructuring Pursuant to Opinion No. 96-12.  Order Adopting
                                                      --------------
        Terms of Settlement Subject to Modifications and Conditions
        -----------------------------------------------------------
        (Issued and Effective February 19, 1998)

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CASE 96-E-0909

in non-regulated  subsidiaries independent of the holding company formation. The
revisions  are  consistent  with  the  intent  underlying  the  adoption  of the
Restructuring  Plan. Staff recommends that the proposed amendment and confirming
revision be approved.

Background

            By order issued and  effective  February 19,  1998,  the  Commission
adopted the  Restructuring  Plan. At issue is the effect of the holding  company
formation with respect to Section VI.B.6 of the Restructuring  Plan.  Provisions
of the section allow Central  Hudson to transfer up to $100 million of equity to
unregulated  subsidiaries  and to sell up to $100 million of securities  without
further Commission approval.

            CH Energy Group,  Inc.  became the holding company parent of Central
Hudson  gas  and  Electric   Corporation   December  15,  19991.   However,  the
Restructuring Plan contains an unintended  disincentive  regarding the formation
of the holding company prior to the closing of the sale of fossil generation. As
the Restructuring Plan now exists,  once the holding company is formed,  Section
VI.B.6  becomes  inoperable  bringing  into  question  the basis for  financings
related to future equity transfers and the need for any Commission  approval for
such financings.

Proposed Revisions

            To eliminate  the  disincentive,  Central  Hudson  proposes that the
first sentence of Section VI.B.6 of the Restructuring Plan be amended as:

            Central  Hudson is  permitted  to  transfer  equity  from  regulated
            operations to its unregulated operations, in the amount specified by
            this  Section,  until  the  earlier  of a) the time  Central  Hudson
            receives the proceeds from the sale of its fossil

--------
      1     Another major element of Central Hudson's Restructuring Plan,
            it's Fossil Generation Auction Plan, was approved by the
                 ------------------------------
            Commission on February 9, 2000 (C. 96-E-0909).

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CASE 96-E-0909

            generation  plants or, b) the end of the rate period covered by this
            agreement. This provision is independent of when the holding company
            is formed.  From the point the holding  company is formed  until the
            receipt of the proceeds from the plant sales,  the balance of equity
            available for transfer,  as described above,  must be reduced by the
            amount of dividends  Central Hudson Regco pays to its parent company
            that exceed the dividends paid by the parent to shareholders.

The  remainder of this sentence  that  provides  total new equity  investment in
unregulated subsidiaries, not to exceed $100 million, is retained.

            In  addition,  a  conforming  revision  would  be made  to the  last
sentence of the second paragraph of Section VI.B.6 so that it would read as:

            The limitations of this paragraph shall no longer be applicable upon
            the latter of the restructuring into the Holdco  organization or the
            closing on the sale of fossil  generation (or last such closing,  in
            the event there should be more than one closing).

Discussion

            As noted above,  Section  VI.B.6 of the  Restructuring  Plan becomes
inoperable  when the holding  company is formed,  and therefore  Central  Hudson
loses its  privilege to invest  future funds in its  non-regulated  subsidiaries
without  Commission  approval.  Central  Hudson has  invested  $51.5  million in
subsidiary companies since the Restructuring Plan was adopted by the Commission.
In order to avoid  imposing  a new  restriction  on  Central  Hudson  subsidiary
company  investment(s),  this  amendment  to the  Order  in  Case  96-E-0909  is
necessary and consistent with the intent and spirit of the  Restructuring  Plan.
Furthermore, the Commission specifically addressed Central Hudson's inter-

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CASE 96-E-0909

affiliate  investment  in  Opinion  No.  98-131  and  noted  that  the  level of
investment and the authority to invest in non-regulated  companies is consistent
with  treatments  provided  in other  restructuring  proceedings.  The  proposed
amendment is consistent with the Opinion's inter-affiliate investment position.

            The  Restructuring  Plan  anticipated  Central  Hudson  to form  the
holding company around the time the generation  assets were sold and transferred
to a new  owner,  which  was  expected  to occur mid  2001.  However,  under the
Restructuring  Plan,  Central  Hudson's  earlier than expected  holding  company
formation  would restrict the  availability  of funds  prematurely  without this
proposed amendment.

            These revisions  clarify that the provisions of Section VI.B.6 would
allow equity transfers and related financings independent of the holding company
formation.  The elimination of the disincentive allows Central Hudson to proceed
with its  restructuring  plan while  maintaining  its authority to invest in its
unregulated   subsidiaries  without  further  Commission   approval.   Financial
integrity safeguards and customer protections are not changed and remain intact.

--------
      1     Case 96-E-0909, Central Hudson Gas & Electric Corporation -
         Electric Rate/Restructuring, Opinion No. 98-13 (Issued and
         Effective June 30, 1998) mimeo p.33.

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CASE 96-E-0909

      It is recommended that the proposed  amendment and conforming  revision be
approved.

                                    Respectfully submitted,




                                    Robert M. Roby
                                    Public Utilities Auditor III



Approved by:


Joe Lochner
Public Utilities Auditor IV

Reviewed by:


Leonard Van Ryn
Office of General Council

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