It took almost a year of negotiations and $1.5 billion dollars, but Central Hudson Utility is ready for a company merger. Our Elaina Athans has the details and what it mean for the average customer.

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POUGHKEEPSIE, N.Y. -- "We’re continually working on becoming more efficient,” said Central Hudson Chairman and CEO Steven Lant.

Central Hudson Gas and Electric Company is heading toward a merger. It just announced plans to go into business with Fortis, which Canada's largest distribution utility. The deal is worth $1.5 billion and would be paid in cash.

"We’ve been looking for some time to buy a good, regulated utility in the United States and we feel we found a great opportunity here," said Fortis CFO Barry Perry.

The company, which has been around in 1920, employees more than 830 people.

"We have no plans to downsize, lay off anything of that nature," said Lant.

The belief is a merger like this will improve customer service. If you remember not so long ago after Tropical Storm Irene, ratepayers were without power for days, many becoming frustrated with the utility company.

"This transaction gives us more resources to make more investments, to make the system more reliable. So I think directionally, the benefit will be to better reliability in the future," said Lant.

The agreement requires approval by the State Public Service Commission. In order to get a sign off, the companies will have to prove there's benefit to customers. Both entities say part of that could mean lower rates. However, right now, Central Hudson has $500 million worth of debt and Fortis will absorb that outstanding bill.

"I don't believe the existence of the debt is really an particular issue in the minds of either company," said Ant.

It could a year before a merger actually happens, pending that state's review.