<PAGE>                      FORM 10-Q
                         UNITED STATES
                SECURITIES AND EXCHANGE COMMISSION
                     Washington, D. C. 20549
                                                  
(Mark One)

[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE      
     SECURITIES EXCHANGE ACT OF 1934 

For the quarterly period ended.................September 30, 1998
                                OR
[ ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE     
     SECURITIES EXCHANGE ACT OF 1934

For the transition period from............to...................
Commission file number.................................333-52797

             CH ENERGY GROUP, INC.        
        (Exact name of registrant as specified in its charter)

           NEW YORK                              14-1804460  
(State or other jurisdiction of              (I.R.S. Employer
incorporation or organization)              Identification No.)

284 SOUTH AVENUE, POUGHKEEPSIE  NEW YORK        12601-4879   
(Address of principal executive offices)        (Zip Code)

Registrant's telephone number, including area code (914) 452-2000

     Indicate by check mark whether the Registrant (1) has filed
all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the Registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes   X   No      

     Indicate the number of shares outstanding of each of the
issuer's classes of common stock as of the latest practicable
date.  Common stock, par value $.10 per share; 100 shares
outstanding as of September 30, 1998.
     The Company meets the conditions set forth in General
Instructions H(1)(a) and (b) to Form 10-Q and is therefore filing
this form with the reduced disclosure format.
                      CH ENERGY GROUP, INC.

        FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 30, 1998

                              INDEX




       PART I - FINANCIAL INFORMATION                          PAGE 

Item 1 - Financial Statements                             

         Statement of Income -                             
          Three Months Ended September 30, 1998             1

         Statement of Income -
          Nine Months Ended September 30, 1998              1
                                                            
         Balance Sheet - September 30, 1998                 2

         Statement of Cash Flows -
          Nine Months Ended September 30, 1998              3

         Notes to Financial Statements                      4


        PART II - OTHER INFORMATION

Item 6 - Exhibits and Reports on Form 8-K                   6

Signatures                                                  7
<PAGE>
                  PART I - FINANCIAL INFORMATION

ITEM 1 - FINANCIAL STATEMENTS

                      CH ENERGY GROUP, INC.
                       STATEMENT OF INCOME
                           (UNAUDITED)
                                          For the Period Ended 
                                           September 30, 1998

                                          3 Months     9 Months



Operating Revenues....................  $     -       $   -


Expenses
 Start-up Costs........................       -         67,370
 Federal income tax (Credit)...........       -        (23,580)


Net Loss...............................       -        (43,790)

Dividends Declared on 
 Common Stock..........................       -           -    

Balance Retained in the Business....... $     -       $(43,790)











                See Notes to Financial Statements.

                      CH ENERGY GROUP, INC.
                          BALANCE SHEET

                                             September 30,
                                                  1998
                                              (Unaudited)

          ASSETS
Current Assets
 Cash and cash equivalents..................        -
  Prepayments...............................        300
   Total Current Assets.....................        300


Total Assets................................ $      300


          CAPITALIZATION and LIABILITIES

Capitalization
 Common Stock Equity
  Common stock, 30,000,000 shares
  authorized; shares issued
  ($.10 par value):
  1998 - 100................................ $       10
 Paid-in capital............................        -
 Retained earnings..........................    (43,790)
   Total Common Stock Equity
       and Capitalization...................    (43,780)

Current Liabilities
 Due to parent..............................     44,080
   Total Current Liabilities................     44,080

Total Capitalization and
 Liabilities................................ $      300



                See Notes to Financial Statements.

                      CH ENERGY GROUP, INC.
                     STATEMENT OF CASH FLOWS
                           (UNAUDITED)
                                               For the
                                            9 Months Ended
                                             September 30,  
                                                1998      
          
Operating Activities
  Net (Loss)................................ $  (43,790)
  Changes in current assets and
   liabilities, net:
    Prepayments.............................       (300)
    Due to parent...........................     44,080
  Net cash used by operating
   activities...............................        (10)
Investing Activities........................        -   
Financing Activities
    Common stock issued.....................         10       
   Net cash provided by financing 
    activities...............................        10

Net Change in Cash and Cash 
 Equivalents.................................       -  
Cash and Cash Equivalents - 
 Beginning of Year...........................       -  
Cash and Cash Equivalents - 
 End of Period............................... $     -  
Supplemental Disclosure of
 Cash Flow Information
   Interest paid............................. $     -   
   Federal income tax paid...................       -  

                  See Notes to Financial Statements.
                                
                                
                                
                                
                                
                                
                                
                                
                                
                     CH ENERGY GROUP, INC.
                 Notes to Financial Statements
                                
NOTE 1 - GENERAL 

       The accompanying financial statements of CH Energy Group, Inc.
(herein "the Company") are unaudited.  Preparation of the
financial statements in accordance with generally accepted
accounting principles requires the use of estimates and
assumptions by management that effect the reported amounts of
assets and liabilities and disclosures of contingent assets and
liabilities at the date of the financial statements and reported
amount of revenues and expenses during the reporting period. 
Actual results may differ from those estimates.


NOTE 2 - FORMATION OF THE COMPANY  

       Effective April 24, 1998, CH Energy Group, Inc. was formed as a
wholly-owned subsidiary of Central Hudson Gas & Electric
Corporation, ("Central Hudson"), a New York State gas and
electric corporation (Commission file number 1-3268), which upon
a one-for-one share exchange will become the holding company
owner of Central Hudson.  The registration statement
("Registration Statement") relating to the securities to be
issued to effect the share exchange was effective on July 28,
1998.  Initially, the holding company ("CH Energy Group, Inc.")
will own as first tier subsidiaries Central Hudson and its
existing subsidiaries, with the exception of one subsidiary
(Phoenix Development Company, Inc.) which holds real property for
future use by Central Hudson. Phoenix Development Company, Inc.
will remain a wholly owned subsidiary of Central Hudson.  CH
Energy Group, Inc., following the share exchange, may also
establish other subsidiaries over time.

       A special meeting of Central Hudson shareholders was held on
September 25, 1998, at which meeting Central Hudson shareholders
approved the share exchange which would result in the formation
of a holding company structure.  While no specific date has been
set, it is expected that the share exchange will occur during the
first half of 1999.  This will allow the Company to coordinate
closely with such restructuring the transfer of up to $100
million in equity from Central Hudson to CH Energy Group, Inc.
and/or one of its prospective first tier subsidiaries.
       The Company is a start-up company and as such, has only incurred
expenses.  Costs incurred to date primarily relate to the
Registration Statement.
 
NOTE 3 - FORWARD-LOOKING STATEMENTS

       This quarterly report on Form 10-Q may contain statements which,
to the extent they are not recitations of historical fact,
constitute "forward-looking statements" within the meaning of the
Securities Litigation Reform Act of 1995 (Reform Act).  These
statements will contain words such as "believes", "expects",
"intends", "plans", and other similar words.  All such forward-looking
statements are intended to be subject to the safe harbor
protection provided by the Reform Act.  A number of important
factors affecting the Company's business and financial results
could cause actual results to differ materially from those stated
in the forward-looking statements.  Those factors include
weather, energy supply and demand, developments in the
legislative, regulatory and competitive environment, electric and
gas industry restructuring and cost recovery and certain
environmental matters.

       Given these uncertainties, undue reliance should not be placed
on these forward-looking statements.
<PAGE>
                  PART II - OTHER INFORMATION


Item 6.     Exhibits and Reports on Form 8-K

     (a)  The following exhibits are furnished in accordance
with the provisions of Item 601 of Regulation S-K:

  Exhibit No.
Regulation S-K
   Item 601
 Designation                 Exhibit Description

  (3)(i)                     Restated Certificates of
                             Incorporation.

  (ii)                       By-Laws of the Company as
                             amended September 23, 1998.
 

  (27)                       Financial Data Schedule, pursuant
                             to Item 601 of Regulation S-K.

     (b)    Reports on Form 8-K. During the period covered by
this Report on Form 10-Q, the Company filed the following Current
Reports on Form 8-K:

            None.
<PAGE>
                            SIGNATURES

    Pursuant to the requirements of the Securities Exchange Act
of 1934, the Company has duly caused this report to be signed on
its behalf by the undersigned hereunder duly authorized.

                             CH ENERGY GROUP, INC.
                                (Registrant)


                    By:     (SGD.) DONNA S. DOYLE               
                                  Donna S. Doyle
                                   Controller 
                          Authorized Officer and Chief
                               Accounting Officer
        
Dated: November 12, 1998























</PAGE>
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FORM 10-Q
                         UNITED STATES
                SECURITIES AND EXCHANGE COMMISSION
                     Washington, D. C. 20549
                                                  
(Mark One)

[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE      
     SECURITIES EXCHANGE ACT OF 1934 

For the quarterly period ended.................September 30, 1998
                                OR
[ ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE     
     SECURITIES EXCHANGE ACT OF 1934

For the transition period from............to...................
Commission file number.................................333-52797

             CH ENERGY GROUP, INC.        
        (Exact name of registrant as specified in its charter)

           NEW YORK                              14-1804460  
(State or other jurisdiction of              (I.R.S. Employer
incorporation or organization)              Identification No.)

284 SOUTH AVENUE, POUGHKEEPSIE  NEW YORK        12601-4879   
(Address of principal executive offices)        (Zip Code)

Registrant's telephone number, including area code (914) 452-2000

     Indicate by check mark whether the Registrant (1) has filed
all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the Registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes   X   No      

     Indicate the number of shares outstanding of each of the
issuer's classes of common stock as of the latest practicable
date.  Common stock, par value $.10 per share; 100 shares
outstanding as of September 30, 1998.
     The Company meets the conditions set forth in General
Instructions H(1)(a) and (b) to Form 10-Q and is therefore filing
this form with the reduced disclosure format.
                      CH ENERGY GROUP, INC.

        FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 30, 1998

                              INDEX

       PART I - FINANCIAL INFORMATION                          PAGE 

Item 1 - Financial Statements                             

         Statement of Income -                             
          Three Months Ended September 30, 1998             1

         Statement of Income -
          Nine Months Ended September 30, 1998              1
                                                            
         Balance Sheet - September 30, 1998                 2

         Statement of Cash Flows -
          Nine Months Ended September 30, 1998              3

         Notes to Financial Statements                      4

        PART II - OTHER INFORMATION

Item 6 - Exhibits and Reports on Form 8-K                   6

Signatures                                                  7
PART I - FINANCIAL INFORMATION

ITEM 1 - FINANCIAL STATEMENTS

                      CH ENERGY GROUP, INC.
                       STATEMENT OF INCOME
                           (UNAUDITED)
                                          For the Period Ended 
                                           September 30, 1998

                                          3 Months     9 Months

Operating Revenues....................  $     -       $   -

Expenses
 Start-up Costs........................       -         67,370
 Federal income tax (Credit)...........       -        (23,580)

Net Loss...............................       -        (43,790)

Dividends Declared on 
 Common Stock..........................       -           -    

Balance Retained in the Business....... $     -       $(43,790)

                See Notes to Financial Statements.

                      CH ENERGY GROUP, INC.
                          BALANCE SHEET

                                             September 30,
                                                  1998
                                              (Unaudited)

          ASSETS
Current Assets
 Cash and cash equivalents..................        -
  Prepayments...............................        300
   Total Current Assets.....................        300

Total Assets................................ $      300

          CAPITALIZATION and LIABILITIES

Capitalization
 Common Stock Equity
  Common stock, 30,000,000 shares
  authorized; shares issued
  ($.10 par value):
  1998 - 100................................ $       10
 Paid-in capital............................        -
 Retained earnings..........................    (43,790)
   Total Common Stock Equity
       and Capitalization...................    (43,780)

Current Liabilities
 Due to parent..............................     44,080
   Total Current Liabilities................     44,080

Total Capitalization and
 Liabilities................................ $      300

                See Notes to Financial Statements.

                      CH ENERGY GROUP, INC.
                     STATEMENT OF CASH FLOWS
                           (UNAUDITED)
                                               For the
                                            9 Months Ended
                                             September 30,  
                                                1998      
          
Operating Activities
  Net (Loss)................................ $  (43,790)
  Changes in current assets and
   liabilities, net:
    Prepayments.............................       (300)
    Due to parent...........................     44,080
  Net cash used by operating
   activities...............................        (10)
Investing Activities........................        -   
Financing Activities
    Common stock issued.....................         10       
   Net cash provided by financing 
    activities...............................        10

Net Change in Cash and Cash 
 Equivalents.................................       -  
Cash and Cash Equivalents - 
 Beginning of Year...........................       -  
Cash and Cash Equivalents - 
 End of Period............................... $     -  
Supplemental Disclosure of
 Cash Flow Information
   Interest paid............................. $     -   
   Federal income tax paid...................       -  

                  See Notes to Financial Statements.
                                
                                
                                
                                
                                
                                
                                
                                
                                
                     CH ENERGY GROUP, INC.
                 Notes to Financial Statements
                                
NOTE 1 - GENERAL 

       The accompanying financial statements of CH Energy Group, Inc.
(herein "the Company") are unaudited.  Preparation of the
financial statements in accordance with generally accepted
accounting principles requires the use of estimates and
assumptions by management that effect the reported amounts of
assets and liabilities and disclosures of contingent assets and
liabilities at the date of the financial statements and reported
amount of revenues and expenses during the reporting period. 
Actual results may differ from those estimates.

NOTE 2 - FORMATION OF THE COMPANY  

       Effective April 24, 1998, CH Energy Group, Inc. was formed as a
wholly-owned subsidiary of Central Hudson Gas & Electric
Corporation, ("Central Hudson"), a New York State gas and
electric corporation (Commission file number 1-3268), which upon
a one-for-one share exchange will become the holding company
owner of Central Hudson.  The registration statement
("Registration Statement") relating to the securities to be
issued to effect the share exchange was effective on July 28,
1998.  Initially, the holding company ("CH Energy Group, Inc.")
will own as first tier subsidiaries Central Hudson and its
existing subsidiaries, with the exception of one subsidiary
(Phoenix Development Company, Inc.) which holds real property for
future use by Central Hudson. Phoenix Development Company, Inc.
will remain a wholly owned subsidiary of Central Hudson.  CH
Energy Group, Inc., following the share exchange, may also
establish other subsidiaries over time.

       A special meeting of Central Hudson shareholders was held on
September 25, 1998, at which meeting Central Hudson shareholders
approved the share exchange which would result in the formation
of a holding company structure.  While no specific date has been
set, it is expected that the share exchange will occur during the
first half of 1999.  This will allow the Company to coordinate
closely with such restructuring the transfer of up to $100
million in equity from Central Hudson to CH Energy Group, Inc.
and/or one of its prospective first tier subsidiaries.
       The Company is a start-up company and as such, has only incurred
expenses.  Costs incurred to date primarily relate to the
Registration Statement.
 
NOTE 3 - FORWARD-LOOKING STATEMENTS

       This quarterly report on Form 10-Q may contain statements which,
to the extent they are not recitations of historical fact,
constitute "forward-looking statements" within the meaning of the
Securities Litigation Reform Act of 1995 (Reform Act).  These
statements will contain words such as "believes", "expects",
"intends", "plans", and other similar words.  All such forward-looking
statements are intended to be subject to the safe harbor
protection provided by the Reform Act.  A number of important
factors affecting the Company's business and financial results
could cause actual results to differ materially from those stated
in the forward-looking statements.  Those factors include
weather, energy supply and demand, developments in the
legislative, regulatory and competitive environment, electric and
gas industry restructuring and cost recovery and certain
environmental matters.

       Given these uncertainties, undue reliance should not be placed
on these forward-looking statements.
PART II - OTHER INFORMATION

Item 6.     Exhibits and Reports on Form 8-K

     (a)  The following exhibits are furnished in accordance
with the provisions of Item 601 of Regulation S-K:

  Exhibit No.
Regulation S-K
   Item 601
 Designation                 Exhibit Description

  (3)(i)                     Restated Certificates of
                             Incorporation.

  (ii)                       By-Laws of the Company as
                             amended September 23, 1998.
 

  (27)                       Financial Data Schedule, pursuant
                             to Item 601 of Regulation S-K.

     (b)    Reports on Form 8-K. During the period covered by
this Report on Form 10-Q, the Company filed the following Current
Reports on Form 8-K:

            None.
SIGNATURES

    Pursuant to the requirements of the Securities Exchange Act
of 1934, the Company has duly caused this report to be signed on
its behalf by the undersigned hereunder duly authorized.

                             CH ENERGY GROUP, INC.
                                (Registrant)

                    By:     (SGD.) DONNA S. DOYLE               
                                  Donna S. Doyle
                                   Controller 
                          Authorized Officer and Chief
                               Accounting Officer
        
Dated: November 12, 1998