(Poughkeepsie, New York)  Changes in regulatory provisions under a new utility rate agreement and a number of significant, favorable one-time and unusual items caused earnings for CH Energy Group, Inc. (NYSE: CHG) to increase to 70 cents per share in the third quarter of 2006, as compared to 36 cents per share during the same quarter of 2005.

"We're pleased that the much-needed rate increase we implemented this quarter has allowed us to better cover our expenses and permit our earnings to recover to more reasonable levels," said Steven V. Lant, Chairman of the Board, President and Chief Executive Officer.  "However, this quarter also benefited by a total of 28 cents per share from a number of significant, favorable one-time and unusual items being recognized in the third quarter, including tax adjustments, modifications to reserves and the sale of property  – while last year's third quarter was depressed by earnings deferrals under our prior rate agreement. This further amplified the year-to-year change."

Year-to-date earnings stand at $2.12, as compared to $2.07 for the nine months that ended on September 30, 2005.

Regulated Electric and Gas Business:
Central Hudson earned 67 cents per share in the third quarter of 2006, compared to 42 cents during the same period of 2005, up 25 cents quarter-over-quarter. Certain items totaling 20 cents favorably influenced the results, including adjustments to regulatory mechanisms resulting from the PSC agreement (which took effect July 1, 2006) and the sale of unused property. Comparatively cooler summer weather decreased earnings by approximately 8 cents per share during the quarter.

Unregulated Fuel Distribution Businesses:
Results within the unregulated fuel distribution businesses were stable, a loss of 15 cents during the quarter – which was the same amount posted during the third quarter of 2005 and which is typical during the non-heating season. Gross profit on petroleum products was level as compared to the same quarter of 2005. Increased service profitability and a reduction of reserves held for possible environmental issues offset increased operating expenses that resulted largely from acquisitions.  Lant reported that the acquisitions are expected to increase revenues during the upcoming heating season.

Unregulated – Other Businesses:
The Company's investment in the Lyonsdale Biomass plant on April 12, 2006, had a net positive impact of 2 cents per share in the third quarter. In total, other income for the holding company and interests held by Central Hudson Enterprises Corporation (CHEC) increased by nearly 7 cents per share as compared to the third quarter of 2005. The elimination of contingent liabilities, increased income from investments in the Cornhusker Lexington ethanol plant and a reduction in business development expenses contributed to that increase, though results were partially dampened by the recording of unfavorable income tax adjustments by the holding company.

 About CH Energy Group, Inc.
With more than 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 367,000 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, 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 seven 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.

#    #    #

Conference Call: Mr. Lant will conduct a conference call with investors to review financial results at 2:00 p.m. (ET) today, October 30, 2006.  Dial-in: 1-800-553-0327; Conference Name:  “CH Energy Group.”  A digitized replay of the call will be available from 7:15 p.m. (ET) on October 30, 2006, until 11:59 p.m. (ET) on November 6, 2006, by dialing 1‑800‑475‑6701 and entering access code #844974. 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, where consolidated financial statements are also available.

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.