CH Energy Group Posts Third Quarter Earnings

(Poughkeepsie, NY) CH Energy Group (NYSE:CHG) earnings during the third quarter of 2007 totaled 27 cents per share versus the 70 cents per share earning during the third quarter of 2006. Company officials reiterated their belief that the energy holding company will attain its year-end projected consolidated earnings of between $2.55 and $2.80 per share. Year-to-date earnings per share stand at $1.98, in comparison to $2.12 for the first three quarters of 2006.

Changes in regulatory provisions and a number of significant, favorable, one-time and unusual items had contributed 31 cents per share to the third-quarter results of the prior year, when earnings per share totaled 70 cents. The 2007 third-quarter results were more typical of prior third-quarter results.

 "These results were consistent with our business plan, which recognized both the unique circumstances that had shaped third-quarter results last year and the seasonality of our business units," explained Steven V. Lant, Chairman of the Board, President and C.E.O. "What's most important is that we remain on target to reach our 2007 earnings projections."

The following summarizes quarterly results by business unit:

Central Hudson Gas & Electric Corporation

            The utility earned 37 cents during the third quarter, as compared to the 67 cents it posted during the same period of the prior year. “Of the 30-cent variation, 21 cents are attributable to those unusual items that occurred in the third quarter of last year; the remaining 9 cents were primarily due to increased expenses – largely the additional expenses that we incurred as we accelerated our tree-trimming program in order to improve the reliability of service for our electric customers,” Lant said. He projects that Central Hudson will contribute between $1.90 and $2.00 to annual earnings per share. Earnings per share year to date total $1.52.

Griffith Energy Services, Inc.

            The fuel distribution subsidiary posted a loss of 21 cents per share, as compared to the 15-cent loss it incurred during the same quarter of 2006. “The seasonal nature of Griffith's operations typically produces a loss during the third quarter, but this year we made several significant acquisitions that also impacted the results,” Lant noted. "While creating a drag on the third quarter, these new companies are expected to be accretive to earnings beginning in the fourth quarter of 2007 and on an annualized basis."

            Lant noted Griffith invested $16 million in eight acquisitions during the first three quarters of 2007, acquiring 15,300 additional customers and moving into a new geographic market. The fuel distribution subsidiary now serves nearly 102,000 customers, an 18-percent increase over the same period of last year.

            Griffith's year-to-date earnings per share were 11 cents, as compared to the break-even level posted during the same three quarters of 2006. Two of the 11 cents resulted from acquisitions completed during 2007, with the remainder due largely to improved margins on petroleum sales and services, as well as 6 cents due to colder weather. CH Energy Group projects annual earnings per share from the subsidiary to total between 25 and 30 cents.

Other Businesses & Investments

            Quarterly earnings per share for other businesses and investments, including the Company’s renewable energy portfolio, totaled 11 cents during the quarter, down from 18 cents during the third quarter of last year.  The absence of a significant and unusual item in this year's third quarter was the primary reason for the quarter-over-quarter difference. Earnings per share for the first three quarters of 2007 from these investments totaled 35 cents, 4 cents lower than the same period of 2006. Lant reiterated that annual earnings per share for its other businesses are projected to total between 40 and 50 cents for 2007, and that he projects consolidated earnings per share for all business units will total between $2.55 and $2.80.

About CH Energy Group, Inc.

With nearly 475,000 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 371,000 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 102,000 customers in nine 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.

Conference Call:  Mr. Lant will conduct a conference call with investors to review financial results at 2:00 p.m. (ET) today, October 29, 2007.  Dial-in: 1-800-230-1085; Conference Name “CH Energy Group.”  Supplemental materials are available here to assist participants in following the Conference Call presentation.  A digitized replay of the call will be available from 7:15 p.m. (ET) on October 29, 2007, until 11:59 p.m. (ET) on November 5, 2007, by dialing 1-800-475-6701 and entering access code # 890732. In addition, the call will be Web cast 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.