CH Energy Group Reports First Quarter Earnings

(Poughkeepsie, NY)  The impact of warmer winter weather and the expense of restoring electric service in the wake of storms were the primary factors that combined to reduce first-quarter earnings for CH Energy Group, Inc. (NYSE:CHG) by 13 cents per share as compared to those of the first quarter of 2005. The Company posted quarterly results of $1.16 versus $1.29 one year ago.

            "We estimate that residential heating degree days (a measurement of heating requirements) were 9 percent lower than those of a year ago, and about 10 percent below normal; that fact alone was enough to reduce earnings corporate-wide by about 16 cents per share," explained Chairman of the Board, President and C.E.O. Steven V. Lant. "In addition, we incurred about $1.7 million in increased expenses to restore electric service after windstorms within Central Hudson's service territory, which further reduced our quarterly earnings by about 7 cents. Clearly, unusually warm yet stormy winter weather took its toll this quarter. However, weather variations average out over time and our fundamentals remain solid."

            Those impacts were partially offset by the benefits of several regulatory mechanisms.

Regulated Electric and Gas Business

            Central Hudson Gas & Electric Corporation earnings were down 12 cents as compared to those of the first quarter of 2005. Electric net operating revenues decreased by 6 cents between the first quarter of 2005 and the first quarter of 2006, as deliveries declined by 5 percent. Natural gas net operating revenues also decreased by 6 cents quarter to quarter, representing a decline in deliveries of 14 percent. Central Hudson's earnings for the quarter were buoyed, however, by several regulatory mechanisms, including funds made available toward achieving allowed operating income levels.

Fuel Distribution Business

            Earnings were 2 cents lower in the fuel distribution business during 2006's first quarter versus those of a year ago, with weather estimated to have reduced earnings by 5 cents. Total petroleum sales fell by more than 7 percent, as compared to the first three months of 2005 and sales to residential customers declined by 13 percent.  Importantly, improved service profitability and margins, as well as the contributions of acquisitions made in the fourth quarter of 2005, helped to offset the decline in the gross profit from reduced sales associated with warmer winter weather.

Other Business

            Increased income associated with short-term investments held by the holding company added 1 cent to quarterly earnings, as compared to the first quarter of 2005.

About CH Energy Group, Inc.

With nearly 450,000 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 363,500 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, a non-regulated subsidiary, is the umbrella for a family of energy-related companies and investments focused primarily on fuel oil distribution and renewable energy. CHEC's fuel distribution business supplies energy products and services to more than 85,000 customers in eight states, stretching from Connecticut 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.

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Conference Call: Mr. Lant will conduct a conference call with analysts and investors to review financial results at 2:00 p.m. (ET) today, April 21, 2006.  Dial-in: 1-877-209-0397; Conference Name:  “CH Energy Group.”  A digitized replay of the call will be available from 6:15 p.m. (ET) on April 21, 2006, until 11:59 p.m. (ET) on April 27, 2006, by dialing 1‑800‑475‑6701 and entering access code #825802. A web cast of the call will be available for replay for approximately 30 days; consolidated financial statements are available here.

Forward-Looking Statements

     Statements included in this news release, including documents incorporated by reference that 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.