October 25, 2005

CH Energy Group Reports 8-Cent Increase in Third-Quarter Earnings

(Poughkeepsie, NY) Earnings per share for the third quarter of 2005 for CH Energy Group, Inc. (NYSE:CHG) were 36 cents per share, versus the 28 cents per share posted during the same quarter of 2004, a nearly 30-percent increase.

The gain resulted from several items, including increased electric delivery revenues resulting from hot summer weather and growth in the number of customers served; higher returns on temporary investments; lower effective tax rates; and improved operating margins within the Company's fuel distribution business subsidiaries, primarily in delivered motor fuels. Quarterly earnings increased despite certain regulatory items such as the expiration of the utility's multi-year auction incentive related to the sale of its former fossil fuel generating units and the recording of an assessment for non-attainment of certain electric reliability standards.

Year-to-date, the Company reports earnings of $2.07, a reduction of 2 cents as compared to the first three quarters of 2004.

"The hot summer clearly played a part in driving this quarter's results,” explained Steven V. Lant, Chairman of the Board, President and Chief Executive Officer. "Cooling degree-days, a measure of the need for air conditioning, were 57 percent higher than last year and 55 percent higher than normal. Our customers set five new peak usage records during a summer that is estimated to have been the hottest in 30 years.

"However, some of the other positive factors may prove more sustainable, and we’re working to bring those about. We’re also working hard to communicate with our customers regarding higher energy supply costs to help them manage higher bills.”

Regulated Electric and Gas Business

Central Hudson Gas & Electric Corporation's contribution to third-quarter earnings was 42 cents per share, a decrease of 4 cents from the 46 cents posted during the same period of 2004. However, last year’s quarter included 9 cents per share of non-recurring regulatory items.

Lant said that the utility's July 29, 2005, filing of a proposal to increase electric and natural gas delivery rates is proceeding according to its 11-month procedural schedule. Delivery rates last rose for electric customers in 1993 and for natural gas customers in 1991.

Unregulated Fuel Distribution Businesses

The fuel oil distribution businesses of Central Hudson Enterprises Corporation (CHEC) improved by 3 cents for the quarter. The improvement in earnings resulted largely from an increase in margins, primarily in delivered motor fuels, and an increase in service profitability. Rising operating and interest expenses reduced earnings within the business unit, partially offsetting the improvements.

Unregulated – Other Businesses

Holding Company CH Energy Group, Inc. and CHEC partnership investments contributed 9 cents per share to earnings during the third quarter, which was 9 cents greater than the same period of 2004. Lower income taxes and increased earnings on temporary investments were among the factors that contributed favorably 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, $2.15 - $2.25; fuel oil distribution businesses, 10-15 cents; and unregulated, other businesses (including Holding Company CH Energy Group, Inc.), 30-35 cents.

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 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.

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Conference Call: Mr. Lant will conduct a conference call with analysts and investors to review financial results at 4:00 p.m. (ET) today, Oct. 25, 2005. Dial-in: 1-800-230-1096; Conference Name: “CH Energy Group.” A digitized replay of the call will be available from 7:45 (ET) on Oct. 25, 2005, until 11:59 p.m. (ET) on Nov. 1, 2005, by dialing 1-800-475-6701 and entering access code # 798908. In addition, the call will be web cast live and available for approximately 30 days via the Company's Web site at www.CHEnergyGroup.com, where consolidated financial statements may also be found.

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.