December 18, 2009

For Release:     Immediately

            Investors: Stacey A. Renner, (845) 486-5730
                           News Media:

CH Energy Group Clarifies Gain on Recent Sale of Assets

(Poughkeepsie, NY) CH Energy Group, Inc. (NYSE: CHG) announced on Dec. 11, 2009, that its subsidiary, Griffith Energy Services, Inc., had completed the sale of select operating divisions serving markets in Rhode Island, Connecticut and Pennsylvania as part of a strategic streamlining that is expected to reduce cash flow volatility and allow the fuel oil delivery firm to focus on its Mid-Atlantic operations.

        At that time, it was also reported that the sale would result in a gain of approximately $6.5 million, or approximately 40 cents per share, after taxes. For clarification, the reported gain is the amount that is expected to be recognized by Griffith Energy Services from the sale. As a result of taxes applicable to CH Energy Group at its holding company level, the gain that CH Energy Group will recognize from the sale, on a consolidated basis, after taxes, is expected to total approximately $5.5 million, or approximately 35 cents per share.

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About CH Energy Group, Inc.: 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 300,000 electric and about 74,000 natural gas 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 north from the suburbs of metropolitan New York City to the Capital District at Albany.  Central Hudson Enterprises Corporation, a non-regulated subsidiary, is the umbrella for a family of energy-related companies and investments focused primarily on fuel distribution and renewable energy.  Griffith Energy Service’s fuel distribution business supplies energy products and services to approximately 56,000 customers in five states and Washington, D.C. CHEC also has interests in a Lexington, Neb., ethanol plant and several renewable energy projects in the Northeast.