(Poughkeepsie, NY) Earnings per share for the second quarter of 2005 for CH Energy Group, Inc. (NYSE:CHG) were 38 cents per share, versus the 35 cents per share earned during the second quarter of 2004, an 8-percent increase. The primary drivers of the increase were a one-time, 9-cent tax benefit; higher returns on temporary investments; a reduction in expenses; and a modest improvement in operating performance from the Company's oil distribution subsidiaries. The quarter's earnings were negatively impacted by the expiration of regulatory items that had previously contributed 12 cents. Year-to-date, the Company reports earnings of $1.67, a decrease of 14 cents as compared to the first half of 2004.

"We're pleased with our second-quarter results, especially since our year-to-date earnings reflect the expiration of several significant regulatory items, including the incentive associated with the sale of our generating plants that had increased earnings during prior periods but expired in December 2004," said Steven V. Lant, Chairman of the Board, President and Chief Executive Officer.

"In fact, our quarterly results were actually somewhat dampened by the impact of a hedging contract designed to lessen the effect that variable weather can have upon our revenues. Though it had a 5-cent negative impact in the second quarter of this year, we expect that higher revenues related to warm June weather will offset this impact in the third quarter."

Lant said that the Company believes it will still achieve its full-year earnings projections. Results in both Central Hudson and parent CH Energy Group are projected to be strong enough to maintain consolidated earnings within the target range, even though the Company is adjusting its guidance for the fuel-oil segment to 10-15 cents per share from 20-25 cents per share.

Regulated Electric and Gas Business

Central Hudson Gas & Electric Corporation's contribution to second quarter earnings was 34 cents per share, a decrease of 9 cents from the 43 cents posted during the same period of 2004. The decline resulted from the expiration of a 9-cent incentive associated with the sale of the utility's generating plants and 3 cents of previously deferred revenues. Electric and natural gas revenues increased by $13.3 million (10.7 percent) between the second quarters of 2004 and 2005, due largely to an increase in the amount Central Hudson collected to recover the cost of energy purchased on behalf of its customers.

Lant indicated that the utility is considering the possibility of filing in the weeks ahead with the New York State Public Service Commission for an increase in its delivery rates. "It has been 13 years since our rates were last increased. During that period, the Consumer Price Index has risen nearly 40 percent and the costs we pay for virtually everything have increased dramatically.

"In addition, several significant changes have impacted our regulated business, including increased customer demand for system reliability, pension plan obligations, employee benefit costs, property taxes, and mandated safety and environmental programs. For these and many other reasons, Central Hudson is considering the possibility of requesting a rate increase."

Unregulated Fuel Distribution Businesses

The fuel oil distribution businesses of Central Hudson Enterprises Corporation (CHEC) had a loss – which is typical for the second quarter – of 10 cents per share for the period, 1 cent better than the 11-cents-per-share loss posted in the second quarter of 2004. The improvement in earnings resulted largely from an increase in service profitability and a reduction in operating expenses.

Unregulated – Other Businesses

Holding Company CH Energy Group, Inc. and CHEC partnership investments contributed 14 cents per share to earnings during the second quarter, which was 11 cents above the same period of 2004. A 9-cent favorable New York State income tax benefit and increased earnings on temporary investments were partially offset by a decrease in earnings from CHEC partnership investments during the quarter.

2005 Earnings Projections

Lant reiterated the Company's earlier projection that 2005 consolidated annual earnings would total between $2.55 and $2.75 per share, composed of the following segments: Central Hudson, unchanged at $2.15 - $2.25; fuel oil distribution businesses, 10-15 cents, reduced from 20-25 cents due to lower residential sales volumes during the heating season attributable to customer conservation and attrition, as well as lower commercial sales volumes due to fuel switching in reaction to higher prices in the oil industry; and unregulated, other businesses (including Holding Company CH Energy Group, Inc.), 30-35 cents, increased from 20-25 cents due to a 9-cent New York State income tax benefit for which notice was received in June 2005.

About CH Energy Group

With more than 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 nearly 85,000 customers in eight states and the District of Columbia. Its regional footprint stretches from Connecticut to the Washington, D.C. area, as well as an interest in a Lexington, Neb., ethanol plant.

Conference Call: Mr. Lant will conduct a conference call with analysts and investors to review financial results at 4:00 p.m. (ET) today, July 20, 2005. Dial-in: 1-800-553-5260; Conference Name: "CH Energy Group." A digitized replay of the call will be available from 9:15 p.m. (ET) on July 20, 2005, until 11:59 p.m. (ET) on July 27, 2005, by dialing 1-800-475-6701 and entering access code # 788004. In addition, Consolidated Financial Statements are available here.

Forward-Looking Statements
Statements included in this news release, including its Appendix and the documents incorporated by reference which are not historical in nature, are intended to be, and are hereby identified as, "forward-looking statements" for purposes of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements may be identified by words including "anticipates," "believes," "projects," "intends," “estimates," "expects," "plans," "assumes," "seeks," and similar expressions. Forward-looking statements including, without limitation, those relating to CH Energy Group, Inc. and its subsidiaries' future business prospects, revenues, proceeds, working capital, liquidity, income and margins, are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements, due to several important factors including those identified from time to time in the forward-looking statements. Those factors include, but are not limited to: weather; energy supply and demand; fuel prices; interest rates; potential future acquisitions; developments in the legislative, regulatory and competitive environment; market risks; electric and gas industry restructuring and cost recovery; the ability to obtain adequate and timely rate relief; changes in fuel supply or costs; the success of strategies to satisfy electricity requirements now that Central Hudson's major electric generation assets have been sold; future market prices for energy, capacity, and ancillary services; the outcome of pending litigation and certain environmental matters, particularly the status of inactive hazardous waste disposal sites and waste site remediation requirements; and certain presently unknown or unforeseen factors, including, but not limited to, acts of terrorism. CH Energy Group, Inc. and its subsidiaries undertake no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Given these uncertainties, undue reliance should not be placed on the forward-looking statements.