(Poughkeepsie, NY) Annual earnings for CH Energy Group, Inc. (NYSE:CHG) totaled $2.70 per share in 2007, versus the $2.73 per share posted during 2006. Results for the fourth quarter of 2007 were 73 cents per share, as compared to 62 cents per share achieved in the final quarter of 2006.

"Though we experienced a slight year-over-year reduction in earnings, we are encouraged that our core businesses performed solidly during 2007 and that we were able to mostly replace more than 50 cents of favorable one-time and unusual items that we had experienced during 2006," explained Steven V. Lant, Chairman of the Board, President and C.E.O.

"Our 2007 earnings per share reflect sound business fundamentals. Our utility sales rebounded somewhat from depressed levels in 2006 and higher rates also boosted revenues. When combined with improved margins within our fuel distribution business and earnings from a peak level of acquisitions, these positive factors largely replaced those unusual items that had benefited earnings in 2006."

CH Energy Group, which filed its 2007 Form 10-K with the U.S. Securities and Exchange Commission on February 13, 2008, released the follow earnings results by business segment:

Central Hudson Gas & Electric Corporation

Central Hudson's contribution to annual earnings was $2.06, which was 9 cents lower than that of 2006. "Though higher utility rates, more favorable weather, and growth in both sales and usage per customer all contributed to earnings in 2007, our results were down from the prior year because we benefitted from those positive regulatory mechanisms and unusual items during 2006 that simply did not reoccur in '07," Lant said. 

He noted in particular three factors that helped to bolster the utility's earnings in 2007 as compared to the prior year: expenses associated with restoring electric service were reduced due to lower storm restoration expenses (15 cents), higher rates (18 cents) and weather-normalized sales growth (18 cents), the last of which indicates that the conservation evidenced by lower usage per customers in 2006 in response to higher energy prices appears to have subsided.

"Yet, despite those positive developments, we are concerned that the sales forecast adopted in our 2006 rate agreement did not accurately reflect the level of customer response to commodity price increases and was therefore overstated – which has resulted in Central Hudson failing to earn the authorized return to shareholders," he said.

In rSeptember, the utility filed a request to implement an energy efficiency program and adopt a revenue decoupling mechanism that would break the link between customer usage and the utility's profit.  Lant said that the outcome of that filing is not yet known and preparations have begun to file a request for a rate increase with the New York State Public Service Commission later this year.

Griffith Energy Services

The Griffith fuel distribution businesses contributed 20 cents to earnings per share in 2007, up from 10 cents during 2006, due largely to higher margins and profitable acquisitions. "We are pleased with this business unit's solid and improved performance, and foresee opportunities to achieve still more given our successful execution in 2007 of our strategy to grow through both acquisitions and internal marketing, as well as to improve operational effectiveness," said Lant.

Other Businesses

Holding company CH Energy Group, Inc., CHEC partnerships and other investments posted 44 cents toward corporate earnings in 2007, down 4 cents from 2006 results. Lant noted the earnings from the Corporation's ethanol investment were lower due to lower margins but stressed that the ethanol plant investment, two wind energy installations and an upstate New York biomass plant continued to add positively to earnings as part of a diversified portfolio of investments within the energy industry.

2008 Earnings Projections

CH Energy Group projected its 2008 consolidated annual earnings will total between $2.40 – $2.70 per share. Earnings expectations for individual business units are projected as follows: $1.95 – $ 2.05 per share from regulated utility Central Hudson Gas & Electric Corporation; 20 – 30 cents per share from Griffith fuel distribution; and 25 – 35 cents per share from holding company CH Energy Group, Inc., partnerships and other investments.

"For the second year in a row, we experienced milder-than-normal weather during the winter season. As a result, we've reduced our guidance for 2008 by 10 cents per share," said Lant. "In addition, the continued shortfall in Central Hudson's sales compared to the projection in our rate plan is putting pressure on our 2008 earnings projections, depressing them by an additional estimated 20 to 25 cents per share – an impact that is also factored into our guidance."

About CH Energy Group, Inc.

With more than 482,000 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 372,000 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 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 110,000 customers in 10 states, stretching from Rhode Island to the Washington, D.C. area.  CHEC also has interests in a Lexington, Neb., ethanol plant, two wind power projects, and a biomass plant in upstate New York, and plans to build a landfill gas energy facility in Auburn, NY in 2008.

Conference Call:  Mr. Lant will conduct a conference call with investors to review financial results at 2:00 p.m. (ET) today, February 14, 2008.  Dial-in: 1-800-230-1093; Conference Name “CH Energy Group.”  Supplemental materials to assist participants in following the Conference Call presentation are available here.  A digitized replay of the call will be available from 4:30 p.m. (ET) on February 14, 2008, until 11:59 p.m. (ET) on February 21, 2008, by dialing 1-800-475-6701 and entering access code 908682. In addition, the call will be webcast live in listen-only mode and available for replay for approximately 30 days within the Investor Relations section of the Company’s Web site at www.CHEnergyGroup.com

Forward-Looking Statements –
Statements included in this News Release and any 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 Exchange Act.  Forward-looking statements may be identified by words including “anticipates,” “intends,” “estimates,” “believes,” “projects,” “expects,” “plans,” “assumes,” “seeks,” and similar expressions.  Forward-looking statements including, without limitation, those relating to CH Energy Group 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; fuel prices; corn and ethanol prices; plant capacity factors; energy supply and demand; interest rates; potential future acquisitions; developments in the legislative, regulatory, and competitive environment; market risks; electric and natural gas industry restructuring and cost recovery; the ability to obtain adequate and timely rate relief; changes in fuel supply or costs including future market prices for energy, capacity, and ancillary services; the success of strategies to satisfy electricity, natural gas, fuel oil, and propane requirements; 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 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.