(Poughkeepsie, NY) Annual earnings for CH Energy Group, Inc. (NYSE:CHG) were $2.81 per share in 2005, versus the $2.69 per share posted during 2004, a rise of 12 cents, or 4.5 percent. Higher electric and natural gas delivery revenues, improved fuel distribution profitability, increased investment earnings and lower income taxes all contributed to higher earnings, more than offsetting the expiration of substantial regulatory incentives and increases in both operating expenses and depreciation.

"Last year was certainly a very dynamic one, with many factors in play that had the potential to seriously impact our earnings: Extreme weather, energy supply price escalation, higher interest rates, the conclusion of incentives associated with the sale of our former generating assets and rising expenses were among the many challenges that our organization successfully managed to achieve these strong year-end results," reported Steven V. Lant, Chairman of the Board, President and C.E.O.

Regulated Electric and Gas Business
Central Hudson Gas & Electric Corporation's contribution to annual earnings was $2.20, a 19-cent decline from that of the year 2004. However, last year’s results included 38 cents worth of regulatory incentives associated with the 2001 sale of the utility's major generating plants as part of New York State's deregulation of the electric industry and 8 cents of revenue restoration related to a previous rate filing. Deliveries to electric and natural gas customers increased 4 percent and 2 percent, respectively, between 2004 and 2005; both segments saw an increase in the number of customers and electricity sales additionally benefited from hot summer weather. The overall impact of weather upon earnings in 2005 was 6 cents, as compared to 2004.

Fuel Distribution Businesses
The fuel distribution businesses of Central Hudson Enterprises Corporation (CHEC) improved their annual earnings contribution by 5 cents for the year, to 23 cents, as compared to 2004 results. The improvement can be attributed to an increase in margins and service profitability, as well as the addition of earnings from the operations of acquisitions made during the course of the year.

Other Businesses
Holding Company CH Energy Group, Inc. and CHEC partnership investments contributed 38 cents, an increase of 26 cents from 2004 levels. Lower income taxes, increased returns on short-term investments and improved earnings from CHEC's other holdings contributed to the strong performance.

4th Quarter 2005 Results
Consolidated basic earnings per share for the quarter ended December 31, 2005, were 74 cents, compared to the 60 cents posted during the final quarter of the previous year. The 23-percent increase is largely attributable to a significant improvement in earnings (9 cents) at the Company's fuel distribution subsidiaries (resulting from improved service profitability, 2005 acquisitions and increased gross margin per gallon); and 5 cents resulting from partnership investments and increased interest on short-term investments held by the holding Company, as compared to the fourth quarter of 2004. Utility operations were flat for the quarter, as increased net revenues and reduced operating expenses offset the expiration of a regulatory incentive associated with the sale of Central Hudson's generating assets.

2006 Earnings Projections
Due to the importance of Central Hudson's pending request to increase delivery rates for electricity and natural gas, it is not possible for CH Energy Group to provide earnings guidance for 2006. The proceeding is currently in settlement negotiations, with a final decision expected from the New York State Public Service Commission around mid-year.

About CH Energy Group

With nearly 440,000 customers, CH Energy Group, Inc. is a family of companies seizing new opportunities in the energy marketplace through two primary subsidiaries: Central Hudson Gas & Electric Corporation is a regulated transmission and distribution utility serving approximately 358,000 customers in eight counties of New York State's Mid-Hudson River Valley, and delivering natural gas and electricity in a 2,600-square-mile service territory that extends from the suburbs of metropolitan New York City north to the Capital District at Albany. Central Hudson Enterprises Corporation includes business units delivering energy and related services to more than 80,000 customers in eight states and the District of Columbia. Its regional footprint stretches from Connecticut to the Washington, D.C. area, as well as interests in a Lexington, Neb., ethanol plant and two wind power projects in the Mid-Atlantic region.