UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

FORM 10-Q

(Mark One)

x
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the quarterly period ended June 30, 2012

OR

o
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
 
Registrant, State of Incorporation
 Address and Telephone Number
 
IRS Employer
 Identification No.
 
 
 
 
 
 
 
 
 
0-30512
 
CH Energy Group, Inc.
(Incorporated in New York)
284 South Avenue
Poughkeepsie, New York 12601-4839
 (845) 452-2000
 
14-1804460
 
 
 
 
 
 
 
 
 
1-3268
 
Central Hudson Gas & Electric Corporation
(Incorporated in New York)
284 South Avenue
Poughkeepsie, New York 12601-4839
 (845) 452-2000
 
14-0555980
 
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 registrants were required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

CH Energy Group, Inc.
Yes  þ
 
No  o
Central Hudson Gas & Electric Corporation
Yes  þ
 
No  o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

CH Energy Group, Inc.
Yes  þ
 
No  o
Central Hudson Gas & Electric Corporation
Yes  þ
 
No  o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.  (Check one):

CH Energy Group, Inc.
 
Central Hudson Gas & Electric Corporation
Large Accelerated Filer þ
 
Large Accelerated Filer o
Accelerated Filer o
 
Accelerated Filer o
Non-Accelerated Filer o
 
Non-Accelerated Filer þ
Smaller Reporting Company o
 
Smaller Reporting Company o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act):

CH Energy Group, Inc.
Yes  o
 
No  þ
Central Hudson Gas & Electric Corporation
Yes  o
 
No  þ

As of the close of business on July 31, 2012 (i) CH Energy Group, Inc. had outstanding 14,942,473 shares of Common Stock ($0.10 per share par value) and (ii) all of the outstanding 16,087,062 shares of Common Stock ($5 per share par value) of Central Hudson Gas & Electric Corporation were held by CH Energy Group, Inc.

CENTRAL HUDSON GAS & ELECTRIC CORPORATION MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTIONS (H)(1)(a) AND (b) OF FORM 10-Q AND IS THEREFORE FILING THIS FORM WITH THE REDUCED DISCLOSURE FORMAT PURSUANT TO GENERAL INSTRUCTIONS (H)(2)(a), (b) AND (c).
 
 
 
FORM 10-Q FOR THE QUARTER ENDED JUNE 30, 2012

TABLE OF CONTENTS

PART I - FINANCIAL INFORMATION

ITEM 1 - Financial Statements (Unaudited)

CH Energy Group, Inc.
PAGE
 
 
 
   Three and Six Months Ended June 30, 2012 and 2011
1
 
 
 
 
 
 
   Three and Six Months Ended June 30, 2012 and 2011
2
 
 
 
 
 
 
   Six Months Ended June 30, 2012 and 2011
3
 
 
 
 
 
 
   June 30, 2012, December 31, 2011 and June 30, 2011
5
 
 
 
 
 
 
   Six Months Ended June 30, 2012 and 2011
7

Central Hudson Gas & Electric Corporation
 
 
 
 
   Three and Six Months Ended June 30, 2012 and 2011
8
 
 
 
 
 
 
   Three and Six Months Ended June 30, 2012 and 2011
8
 
 
 
 
 
 
   Six Months Ended June 30, 2012 and 2011
9
 
 
 
 
 
 
   June 30, 2012, December 31, 2011 and June 30, 2011
10
 
 
 
 
 
 
   Six Months Ended June 30, 2012 and 2011
12

13
 

 
 
 
 
 
TABLE OF CONTENTS
 
 
 
PAGE
 
 
 
58
 
 
 
89
 
 
 
89

PART II - OTHER INFORMATION

90
 
 
 
90
 
 
 
91
 
 
 
91
 
 
 
91
 
 
 
92
 
 
93
_______________________________________________

FILING FORMAT

This Quarterly Report on Form 10-Q is a combined quarterly report being filed by two different registrants:  CH Energy Group, Inc. ("CH Energy Group") and Central Hudson Gas & Electric Corporation ("Central Hudson"), a wholly owned subsidiary of CH Energy Group.  Except where the content clearly indicates otherwise, any reference in this report to CH Energy Group includes all subsidiaries of CH Energy Group, including Central Hudson.  Central Hudson makes no representation as to the information contained in this report in relation to CH Energy Group and its subsidiaries other than Central Hudson.
 
 
PART I - FINANCIAL INFORMATION

ITEM 1 - Financial Statements (Unaudited)

CH ENERGY GROUP CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
(In Thousands, except per share amounts)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
  
Three Months Ended
June 30,
    
Six Months Ended
June 30,
  
 
  
2012
   
2011
   
2012
   
2011
 
Operating Revenues
  
   
   
   
 
Electric
  
$
115,429
    
$
114,235
    
$
244,701
    
$
268,805
  
Natural gas
    
26,120
      
33,997
      
81,970
      
109,479
  
Competitive business subsidiaries:
                                
Petroleum products
    
51,139
      
54,029
      
135,771
      
146,661
  
Other
    
4,882
      
4,806
      
9,200
      
9,094
  
   Total Operating Revenues
    
197,570
      
207,067
      
471,642
      
534,039
  
Operating Expenses
                                
Operation:
                                
Purchased electricity and fuel used in electric generation
    
37,364
      
37,795
      
82,423
      
108,063
  
Purchased natural gas
    
7,490
      
15,290
      
32,104
      
57,088
  
Purchased petroleum
    
45,424
      
48,228
      
115,729
      
123,994
  
Other expenses of operation - regulated activities
    
58,836
      
56,747
      
118,722
      
125,980
  
Other expenses of operation - competitive business subsidiaries
    
11,366
      
11,336
      
23,788
      
23,855
  
Merger related costs
    
3,243
      
-
      
8,462
      
-
  
Depreciation and amortization
    
10,543
      
10,101
      
21,167
      
20,186
  
Taxes, other than income tax
    
11,954
      
11,626
      
25,596
      
24,927
  
   Total Operating Expenses
    
186,220
      
191,123
      
427,991
      
484,093
  
Operating Income
    
11,350
      
15,944
      
43,651
      
49,946
  
Other Income and Deductions
                                
Income from unconsolidated affiliates
    
50
      
155
      
102
      
619
  
Interest on regulatory assets and other interest income
    
1,482
      
1,431
      
3,642
      
3,297
  
Regulatory adjustments for interest costs
    
331
      
330
      
650
      
713
  
Business development costs
    
(5
)
    
(263
)
    
(63
)
    
(498
)
Other - net
    
(106
)
    
(321
)
    
(484
)
    
(890
)
   Total Other Income
    
1,752
      
1,332
      
3,847
      
3,241
  
Interest Charges
                                
Interest on long-term debt
    
6,219
      
6,730
      
12,437
      
13,470
  
Interest on regulatory liabilities and other interest
    
1,703
      
1,534
      
3,287
      
3,015
  
   Total Interest Charges
    
7,922
      
8,264
      
15,724
      
16,485
  
 
                                
Income before income taxes, non-controlling interest and preferred dividends of subsidiary
    
5,180
      
9,012
      
31,774
      
36,702
  
Income Taxes
    
3,026
      
2,905
      
14,797
      
13,520
  
Net Income from Continuing Operations
    
2,154
      
6,107
      
16,977
      
23,182
  
 
                                
Discontinued Operations
                                
Income from discontinued operations before tax
    
-
      
220
      
-
      
821
  
Loss from sale of discontinued operations
    
-
      
(92
)
    
-
      
(543
)
Income tax expense from discontinued operations
    
-
      
38
      
-
      
73
  
Net Income from Discontinued Operations
    
-
      
90
      
-
      
205
  
 
                                
Net Income
    
2,154
      
6,197
      
16,977
      
23,387
  
 
                                
Net Income attributable to non-controlling interest:
                                
Dividends declared on Preferred Stock of subsidiary
    
176
      
242
      
418
      
485
  
Preferred Stock Redemption Premium
    
342
      
-
      
342
      
-
  
Net Income Attributable to CH Energy Group
    
1,636
      
5,955
      
16,217
      
22,902
  
 
                                
Dividends declared on Common Stock
    
8,293
      
8,331
      
16,572
      
16,758
  
Change in Retained Earnings
  
$
(6,657
)
  
$
(2,376
)
  
$
(355
)
  
$
6,144
  
 
The Notes to Financial Statements are an integral part hereof.
 
- 1 -
 
CH ENERGY GROUP CONSOLIDATED STATEMENT OF INCOME (CONT'D) (UNAUDITED)
(In Thousands, except per share amounts)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
Three Months Ended
June 30,
    
Six Months Ended
June 30,
  
 
  
2012
   
2011
   
2012
   
2011
 
Common Stock:
  
   
   
   
 
Average shares outstanding - Basic
    
14,906
      
15,476
      
14,894
      
15,560
  
Average shares outstanding - Diluted
    
15,128
      
15,674
      
15,116
      
15,758
  
 
                                
Income from continuing operations attributable to CH Energy Group common shareholders:
                                
Earnings per share - Basic
  
$
0.11
    
$
0.38
    
$
1.09
    
$
1.46
  
Earnings per share - Diluted
  
$
0.10
    
$
0.37
    
$
1.07
    
$
1.44
  
 
                                
Income from discontinued operations attributable to CH Energy Group common shareholders:
                                
Earnings per share - Basic
  
$
-
    
$
0.01
    
$
-
    
$
0.01
  
Earnings per share - Diluted
  
$
-
    
$
0.01
    
$
-
    
$
0.02
  
 
                                
Amounts attributable to CH Energy Group common shareholders:
                                
Earnings per share - Basic
  
$
0.11
    
$
0.38
    
$
1.09
    
$
1.47
  
Earnings per share - Diluted
  
$
0.10
    
$
0.38
    
$
1.07
    
$
1.46
  
Dividends Declared per Share
  
$
0.555
    
$
0.540
    
$
1.11
    
$
1.08
  
 
 
CH ENERGY GROUP CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)
(In Thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
Three Months Ended
June 30,
    
Six Months Ended
June 30,
  
 
  
2012
   
2011
   
2012
   
2011
 
Net Income
  
$
2,154
    
$
6,197
    
$
16,977
    
$
23,387
  
 
                                
Other Comprehensive Loss:
                                
Net unrealized losses on investments held by equity method investees - net of tax of $0 and $39 in 2012 and $0 and $27 in 2011, respectively
    
-
      
-
      
(58
)
    
(41
)
 
                                
Other comprehensive loss
    
-
      
-
      
(58
)
    
(41
)
 
                                
Comprehensive Income
    
2,154
      
6,197
      
16,919
      
23,346
  
 
                                
Comprehensive income attributable to non-controlling interest
    
518
      
242
      
760
      
485
  
 
                                
Comprehensive income attributable to CH Energy Group
  
$
1,636
    
$
5,955
    
$
16,159
    
$
22,861
  
 
The Notes to Financial Statements are an integral part hereof.
 
 
CH ENERGY GROUP CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
(In Thousands)
 
 
 
 
 
 
 
  
  
Six Months Ended
June 30,
  
 
  
2012
   
2011
 
Operating Activities:
  
   
 
Net income
  
$
16,977
    
$
23,387
  
Adjustments to reconcile net income to net cash provided by operating activities:
                
Depreciation
    
18,887
      
19,271
  
Amortization
    
2,280
      
2,098
  
Deferred income taxes - net
    
16,282
      
12,575
  
Bad debt expense
    
3,802
      
4,093
  
Undistributed equity in earnings of unconsolidated affiliates
    
(102
)
    
(619
)
Pension expense
    
12,987
      
14,866
  
Other post-employment benefits ("OPEB") expense
    
3,584
      
3,586
  
Regulatory liability - rate moderation
    
(1,107
)
    
(6,166
)
Revenue decoupling mechanism recorded
    
(2,829
)
    
5,030
  
Regulatory asset amortization
    
2,865
      
2,882
  
Gain on sale of assets
    
(71
)
    
543
  
Changes in operating assets and liabilities - net of business acquisitions:
                
Accounts receivable, unbilled revenues and other receivables
    
12,884
      
6,433
  
Fuel, materials and supplies
    
6,316
      
4,246
  
Special deposits and prepayments
    
3,306
      
5,334
  
Income and other taxes
    
310
      
(1,921
)
Accounts payable
    
2,056
      
(13,982
)
Accrued interest
    
(503
)
    
982
  
Customer advances
    
8
      
(6,219
)
Pension plan contribution
    
(28,329
)
    
(32,328
)
OPEB contribution
    
(3,269
)
    
(1,184
)
Revenue decoupling mechanism (refunded) collected
    
(945
)
    
2,541
  
Regulatory asset - storm deferral
    
(942
)
    
-
  
Regulatory asset - manufactured gas plant ("MGP") site remediation
    
1,705
      
2,937
  
Regulatory asset - Temporary State Assessment
    
483
      
2,452
  
Merger related transaction costs paid
    
(4,589
)
    
-
  
Deferred natural gas and electric costs
    
255
      
23,797
  
Other - net
    
8,912
      
893
  
Net cash provided by operating activities
    
71,213
      
75,527
  
Investing Activities:
                
Proceeds from sale of assets
    
103
      
6,834
  
Additions to utility and other property and plant
    
(54,012
)
    
(39,509
)
Acquisitions made by competitive business subsidiaries
    
-
      
(1,961
)
Other - net
    
(3,014
)
    
(1,765
)
Net cash used in investing activities
    
(56,923
)
    
(36,401
)
Financing Activities:
                
Redemption of long-term debt
    
(36,495
)
    
(463
)
Proceeds from issuance of long-term debt
    
48,000
      
-
  
Borrowings of short-term debt - net
    
3,500
      
12,000
  
Dividends paid on Common Stock
    
(16,548
)
    
(16,958
)
Redemption of preferred Stock
    
(12,180
)
    
-
  
Dividends paid on Preferred Stock of subsidiary
    
(661
)
    
(485
)
Shares repurchased
    
(2,993
)
    
(18,612
)
Other - net
    
(602
)
    
(233
)
Net cash used in financing activities
    
(17,979
)
    
(24,751
)
Cash Included in Net Current Assets Held for Sale
    
-
      
(1,602
)
Net Change in Cash and Cash Equivalents
    
(3,689
)
    
12,773
  
Cash and Cash Equivalents at Beginning of Period
    
15,281
      
29,420
  
Cash and Cash Equivalents at End of Period
  
$
11,592
    
$
42,193
  
 
The Notes to Financial Statements are an integral part hereof.
 
- 3 -
 
CH ENERGY GROUP CONSOLIDATED STATEMENT OF CASH FLOWS  (CONT'D)
(In Thousands)
 
 
 
 
 
 
 
  
  
Six Months Ended
June 30,
  
 
  
2012
   
2011
 
Supplemental Disclosure of Cash Flow Information:
  
   
 
Interest paid
  
$
13,168
    
$
13,086
  
Federal and state income taxes paid
  
$
118
    
$
332
  
Additions to plant included in liabilities
  
$
4,854
    
$
3,186
  
Merger related transaction costs in liabilities
  
$
3,873
    
$
-
  
 
The Notes to Financial Statements are an integral part hereof.
 
 
 
CH ENERGY GROUP CONSOLIDATED BALANCE SHEET (UNAUDITED)
(In Thousands)
 
 
 
 
 
 
 
 
 
 
 
  
June 30,
    
December 31,
    
June 30,
  
 
  
2012
   
2011
   
2011
 
ASSETS
  
   
   
 
Utility Plant
  
   
   
 
Electric
  
$
1,036,287
    
$
1,008,394
    
$
981,711
  
Natural gas
    
306,888
      
305,664
      
298,998
  
Common
    
153,542
      
147,286
      
141,480
  
Gross Utility Plant
    
1,496,717
      
1,461,344
      
1,422,189
  
 
                        
Less: Accumulated depreciation
    
395,425
      
388,784
      
380,191
  
  Net
    
1,101,292
      
1,072,560
      
1,041,998
  
 
                        
Construction work in progress
    
63,841
      
58,847
      
54,693
  
Net Utility Plant
    
1,165,133
      
1,131,407
      
1,096,691
  
 
                        
Non-Utility Property & Plant
                        
Griffith non-utility property & plant
    
32,285
      
31,669
      
30,363
  
Other non-utility property & plant
    
524
      
524
      
10,532
  
Gross Non-Utility Property & Plant
    
32,809
      
32,193
      
40,895
  
 
                        
Less:  Accumulated depreciation - Griffith
    
22,548
      
22,006
      
21,222
  
Less:  Accumulated depreciation - other
    
-
      
-
      
1,446
  
Net Non-Utility Property & Plant
    
10,261
      
10,187
      
18,227
  
 
                        
Current Assets
                        
Cash and cash equivalents
    
11,592
      
15,281
      
42,193
  
Accounts receivable from customers - net of allowance for doubtful accounts of $7.1 million, $7.0 million and $6.8 million, respectively
    
77,852
      
90,937
      
90,991
  
Accrued unbilled utility revenues
    
10,524
      
15,299
      
10,130
  
Other receivables
    
7,802
      
9,512
      
6,982
  
Fuel, materials and supplies
    
18,798
      
25,114
      
20,462
  
Regulatory assets
    
43,787
      
49,526
      
35,265
  
Income tax receivable
    
-
      
432
      
2,745
  
Fair value of derivative instruments
    
896
      
349
      
62
  
Special deposits and prepayments
    
18,063
      
21,795
      
17,293
  
Assets held for sale
    
-
      
-
      
47,512
  
Accumulated deferred income tax
    
21,840
      
5,895
      
17,781
  
Total Current Assets
    
211,154
      
234,140
      
291,416
  
 
                        
Deferred Charges and Other Assets
                        
Regulatory assets - pension plan
    
145,854
      
159,020
      
127,401
  
Regulatory assets - other
    
111,306
      
114,980
      
89,443
  
Fair value of derivative instruments
    
-
      
931
      
-
  
Goodwill
    
37,752
      
37,512
      
36,455
  
Other intangible assets - net
    
11,940
      
13,173
      
13,094
  
Unamortized debt expense
    
4,951
      
4,535
      
4,735
  
Investments in unconsolidated affiliates
    
2,590
      
2,777
      
6,684
  
Other investments
    
17,327
      
14,461
      
14,802
  
Other
    
5,148
      
6,989
      
5,364
  
Total Deferred Charges and Other Assets
    
336,868
      
354,378
      
297,978
  
Total Assets
  
$
1,723,416
    
$
1,730,112
    
$
1,704,312
  
 
The Notes to Financial Statements are an integral part hereof.
 
 
CH ENERGY GROUP CONSOLIDATED BALANCE SHEET (CONT'D) (UNAUDITED)
(In Thousands, except share amounts)
 
 
 
 
 
 
 
 
 
 
 
  
June 30,
    
December 31,
    
June 30,
  
 
  
2012
   
2011
   
2011
 
CAPITALIZATION AND LIABILITIES
  
   
   
 
Capitalization
  
   
   
 
  CH Energy Group Common Shareholders' Equity
  
   
   
 
Common Stock (30,000,000 shares authorized: $0.10 par value; 16,862,087 shares issued) 14,941,076 shares, 14,894,964 shares and 15,428,451 shares outstanding, respectively
  
$
1,686
    
$
1,686
    
$
1,686
  
Paid-in capital
    
348,899
      
351,053
      
350,405
  
Retained earnings
    
242,036
      
242,391
      
236,486
  
Treasury stock - 1,921,011 shares, 1,967,123 shares and 1,433,636 shares, respectively
    
(90,739
)
    
(92,908
)
    
(63,781
)
Accumulated other comprehensive income
    
296
      
354
      
418
  
Capital stock expense
    
(166
)
    
(328
)
    
(328
)
Total Equity
    
502,012
      
502,248
      
524,886
  
Preferred Stock of subsidiary
    
9,027
      
21,027
      
21,027
  
Long-term debt
    
493,473
      
446,003
      
466,466
  
Total Capitalization
    
1,004,512
      
969,278
      
1,012,379
  
Current Liabilities
                        
Current maturities of long-term debt
    
1,041
      
37,006
      
36,973
  
Notes payable
    
10,000
      
6,500
      
12,000
  
Accounts payable
    
37,071
      
43,904
      
41,450
  
Accrued interest
    
5,830
      
6,333
      
7,380
  
Dividends payable
    
8,293
      
8,511
      
8,574
  
Accrued vacation and payroll
    
7,169
      
6,702
      
6,660
  
Customer advances
    
22,535
      
22,527
      
13,090
  
Customer deposits
    
7,281
      
6,647
      
6,926
  
Regulatory liabilities
    
8,182
      
11,161
      
13,456
  
Fair value of derivative instruments
    
11,342
      
19,791
      
11,096
  
Accrued environmental remediation costs
    
8,525
      
6,652
      
3,687
  
Accrued income and other taxes
    
590
      
-
      
-
  
Deferred revenues
    
3,839
      
4,801
      
3,625
  
Liabilities held for sale
    
-
      
-
      
474
  
Other
    
16,134
      
17,905
      
13,339
  
Total Current Liabilities
    
147,832
      
198,440
      
178,730
  
Deferred Credits and Other Liabilities
                        
Regulatory liabilities - OPEB
    
10,571
      
6,988
      
10,494
  
Regulatory liabilities - other
    
107,168
      
108,887
      
110,267
  
Operating reserves
    
3,581
      
3,383
      
2,689
  
Fair value of derivative instruments
    
973
      
-
      
5,259
  
Accrued environmental remediation costs
    
8,452
      
11,036
      
12,045
  
Accrued OPEB costs
    
51,425
      
53,055
      
45,698
  
Accrued pension costs
    
97,883
      
121,911
      
74,438
  
Tax reserve
    
3,178
      
3,172
      
10,934
  
Other
    
17,611
      
18,802
      
16,851
  
Total Deferred Credits and Other Liabilities
    
300,842
      
327,234
      
288,675
  
Accumulated Deferred Income Tax
    
270,230
      
235,160
      
224,528
  
Commitments and Contingencies
                        
Total Capitalization and Liabilities
  
$
1,723,416
    
$
1,730,112
    
$
1,704,312
  
 
The Notes to Financial Statements are an integral part hereof.
 
 
 
CH ENERGY GROUP CONSOLIDATED STATEMENT OF EQUITY (UNAUDITED)
(In Thousands, except share amounts)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
  
CH Energy Group Common Shareholders
    
   
 
   
  
Common Stock
    
Treasury Stock
    
   
   
   
   
   
 
   
  
Shares Issued
    
Amount
    
Shares Repurchased
    
Amount
    
Paid-In Capital
    
Capital Stock Expense
    
Retained Earnings
    
Accumulated Other Comprehensive Income / (Loss)
    
Non-controlling Interest
    
Total Equity
  
Balance at December 31, 2010
    
16,862,087
    
$
1,686
      
(1,062,825
)
  
$
(44,887
)
  
$
350,360
    
$
(328
)
  
$
230,342
    
$
459
    
$
172
    
$
537,804
  
Comprehensive income:
                                                                                
Net income
                                                    
23,387
              
 
      
23,387
  
Dividends declared on Preferred Stock of subsidiary
                                                    
(485
)
                    
(485
)
Change in fair value:
                                                                                
Investments
                                                            
(41
)
            
(41
)
Reclassification to liabilities held for sale
                                                            
 
      
(172
)
    
(172
)
Dividends declared on common stock
                                                    
(16,758
)
                    
(16,758
)
Treasury shares activity - net
                    
(370,811
)
    
(18,894
)
    
45
                                      
(18,849
)
Balance at June 30, 2011
    
16,862,087
    
$
1,686
      
(1,433,636
)
  
$
(63,781
)
  
$
350,405
    
$
(328
)
  
$
236,486
    
$
418
    
$
-
    
$
524,886
  
 
                                                                                
Balance at December 31, 2011
    
16,862,087
    
$
1,686
      
(1,967,123
)
  
$
(92,908
)
  
$
351,053
    
$
(328
)
  
$
242,391
    
$
354
    
$
-
    
$
502,248
  
Comprehensive income:
                                                                                
Net income
                                                    
16,977
                      
16,977
  
Preferred Stock Redemption
                                            
162
      
(342
)
                    
(180
)
Dividends declared on Preferred Stock of subsidiary
                                                    
(418
)
                    
(418
)
Change in fair value:
                                                                                
Investments
                                                            
(58
)
            
(58
)
Dividends declared on common stock
                                                    
(16,572
)
                    
(16,572
)
Treasury shares activity - net
                    
46,112
      
2,169
      
(2,154
)
                                    
15
  
Balance at June 30, 2012
    
16,862,087
    
$
1,686
      
(1,921,011
)
  
$
(90,739
)
  
$
348,899
    
$
(166
)
  
$
242,036
    
$
296
    
$
-
    
$
502,012
  
 
The Notes to Financial Statements are an integral part hereof.
 
 
 
CENTRAL HUDSON STATEMENT OF INCOME (UNAUDITED)
(In Thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
   
  
Three Months Ended
June 30,
    
Six Months Ended
June 30,
  
 
  
2012
   
2011
   
2012
   
2011
 
Operating Revenues
  
   
   
   
 
Electric
  
$
115,429
    
$
114,235
    
$
244,701
    
$
268,805
  
Natural gas
    
26,120
      
33,997
      
81,970
      
109,479
  
Total Operating Revenues
    
141,549
      
148,232
      
326,671
      
378,284
  
 
                                
Operating Expenses
                                
Operation:
                                
Purchased electricity and fuel used in electric generation
    
37,364
      
37,795
      
82,423
      
108,063
  
Purchased natural gas
    
7,490
      
15,290
      
32,104
      
57,088
  
Other expenses of operation
    
58,836
      
56,747
      
118,722
      
125,980
  
Depreciation and amortization
    
9,402
      
8,960
      
18,870
      
17,881
  
Taxes, other than income tax
    
11,842
      
11,403
      
25,333
      
24,659
  
Total Operating Expenses
    
124,934
      
130,195
      
277,452
      
333,671
  
 
                                
Operating Income
    
16,615
      
18,037
      
49,219
      
44,613
  
 
                                
Other Income and Deductions
                                
Interest on regulatory assets and other interest income
    
1,470
      
1,421
      
3,616
      
3,287
  
Regulatory adjustments for interest costs
    
331
      
330
      
650
      
713
  
Other - net
    
(56
)
    
(250
)
    
(384
)
    
(813
)
Total Other Income
    
1,745
      
1,501
      
3,882
      
3,187
  
 
                                
Interest Charges
                                
Interest on long-term debt
    
5,730
      
5,892
      
11,458
      
11,797
  
Interest on regulatory liabilities and other interest
    
1,705
      
1,520
      
3,232
      
2,988
  
Total Interest Charges
    
7,435
      
7,412
      
14,690
      
14,785
  
 
                                
Income Before Income Taxes
    
10,925
      
12,126
      
38,411
      
33,015
  
 
                                
Income Taxes
    
4,254
      
4,755
      
15,007
      
13,004
  
 
                                
Net Income
    
6,671
      
7,371
      
23,404
      
20,011
  
 
                                
Preferred Stock Redemption Premium
    
342
      
-
      
342
      
-
  
Dividends Declared on Cumulative Preferred Stock
    
176
      
242
      
418
      
485
  
 
                                
Income Available for Common Stock
  
$
6,153
    
$
7,129
    
$
22,644
    
$
19,526
  
 
 
CENTRAL HUDSON STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)
(In Thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
June 30,
  
Six Months Ended
June 30,
  
 
2012
 
2011
 
2012
 
2011
 
Net Income
$
6,671
  
$
7,371
  
$
23,404
  
$
20,011
  
Other Comprehensive Income
  
-
    
-
    
-
    
-
  
Comprehensive Income
$
6,671
  
$
7,371
  
$
23,404
  
$
20,011
  
 
The Notes to Financial Statements are an integral part hereof.
 
 
 
CENTRAL HUDSON STATEMENT OF CASH FLOWS (UNAUDITED)
(In Thousands)
 
 
 
 
 
 
 
 
  
Six Months Ended
June 30,
  
 
  
2012
   
2011
 
Operating Activities:
  
   
 
Net income
  
$
23,404
    
$
20,011
  
Adjustments to reconcile net income to net cash provided by operating activities:
                
Depreciation
    
17,848
      
16,977
  
Amortization
    
1,022
      
904
  
Deferred income taxes - net
    
16,574
      
12,472
  
Bad debt expense
    
3,332
      
3,346
  
Pension expense
    
12,987
      
14,866
  
OPEB expense
    
3,584
      
3,586
  
Regulatory liability - rate moderation
    
(1,107
)
    
(6,166
)
Revenue decoupling mechanism recorded
    
(2,829
)
    
5,030
  
Regulatory asset amortization
    
2,865
      
2,882
  
Changes in operating assets and liabilities - net:
                
Accounts receivable, unbilled revenues and other receivables
    
7,320
      
10,366
  
Fuel, materials and supplies
    
4,586
      
1,894
  
Special deposits and prepayments
    
4,357
      
4,090
  
Income and other taxes
    
(486
)
    
(1,179
)
Accounts payable
    
(2,114
)
    
(5,808
)
Accrued interest
    
(503
)
    
980
  
Customer advances
    
(357
)
    
(6,064
)
Pension plan contribution
    
(28,329
)
    
(32,328
)
OPEB contribution
    
(3,269
)
    
(1,184
)
Revenue decoupling mechanism collected
    
(945
)
    
2,541
  
Regulatory asset - storm deferral
    
(942
)
    
-
  
Regulatory asset - MGP site remediation
    
1,705
      
2,937
  
Regulatory asset - Temporary State Assessment
    
483
      
2,452
  
Deferred natural gas and electric costs
    
255
      
23,797
  
Other - net
    
5,714
      
5,679
  
Net cash provided by operating activities
    
65,155
      
82,081
  
 
                
Investing Activities:
                
Additions to utility plant
    
(52,876
)
    
(35,734
)
Other - net
    
(3,173
)
    
(2,255
)
Net cash used in investing activities
    
(56,049
)
    
(37,989
)
 
                
Financing Activities:
                
Redemption of long-term debt
    
(36,000
)
    
-
  
Proceeds from issuance of long-term debt
    
48,000
      
-
  
Borrowings of short-term debt - net
    
5,500
      
-
  
Redemption of preferred stock
    
(12,180
)
    
-
  
Dividends paid to parent - CH Energy Group
    
(13,000
)
    
(22,000
)
Dividends paid on cumulative Preferred Stock
    
(661
)
    
(485
)
Other - net
    
(620
)
    
(233
)
Net cash used in financing activities
    
(8,961
)
    
(22,718
)
 
                
Net Change in Cash and Cash Equivalents
    
145
      
21,374
  
Cash and Cash Equivalents - Beginning of Period
    
2,521
      
9,622
  
Cash and Cash Equivalents - End of Period
  
$
2,666
    
$
30,996
  
 
                
Supplemental Disclosure of Cash Flow Information:
                
Interest paid
  
$
12,107
    
$
11,376
  
Federal and state income taxes paid
  
$
-
    
$
-
  
Additions to plant included in liabilities
  
$
4,854
    
$
2,956
  
 
The Notes to Financial Statements are an integral part hereof.
 
 
CENTRAL HUDSON BALANCE SHEET (UNAUDITED)
(In Thousands)
 
 
 
 
 
 
 
 
 
 
 
  
June 30,
    
December 31,
    
June 30,
  
 
  
2012
   
2011
   
2011
 
ASSETS
  
   
   
 
Utility Plant
  
   
   
 
Electric
  
$
1,036,287
    
$
1,008,394
    
$
981,711
  
Natural gas
    
306,888
      
305,664
      
298,998
  
Common
    
153,542
      
147,286
      
141,480
  
Gross Utility Plant
    
1,496,717
      
1,461,344
      
1,422,189
  
 
                        
Less: Accumulated depreciation
    
395,425
      
388,784
      
380,191
  
  Net
    
1,101,292
      
1,072,560
      
1,041,998
  
 
                        
Construction work in progress
    
63,841
      
58,847
      
54,693
  
Net Utility Plant
    
1,165,133
      
1,131,407
      
1,096,691
  
 
                        
Non-Utility Property and Plant
    
524
      
524
      
681
  
Less: Accumulated depreciation
    
-
      
-
      
35
  
       Net Non-Utility Property and Plant
    
524
      
524
      
646
  
 
                        
Current Assets
                        
Cash and cash equivalents
    
2,666
      
2,521
      
30,996
  
Accounts receivable from customers - net of allowance for doubtful accounts of $5.4 million, $5.2 million and $5.2 million, respectively
    
53,796
      
61,610
      
61,434
  
Accrued unbilled utility revenues
    
10,524
      
15,299
      
10,130
  
Other receivables
    
4,354
      
5,301
      
4,317
  
Fuel, materials and supplies - at average cost
    
16,451
      
21,037
      
18,133
  
Regulatory assets
    
43,787
      
49,526
      
35,265
  
Fair value of derivative instruments
    
896
      
320
      
62
  
Special deposits and prepayments
    
13,750
      
18,258
      
13,146
  
Accumulated deferred income tax
    
15,503
      
-
      
11,575
  
Total Current Assets
    
161,727
      
173,872
      
185,058
  
 
                        
Deferred Charges and Other Assets
                        
Regulatory assets - pension plan
    
145,854
      
159,020
      
127,401
  
Regulatory assets - other
    
111,306
      
114,980
      
89,443
  
Fair value of derivative instruments
    
-
      
931
      
-
  
Unamortized debt expense
    
4,951
      
4,535
      
4,735
  
Other investments
    
16,870
      
14,047
      
14,372
  
Other
    
1,798
      
3,065
      
1,720
  
Total Deferred Charges and Other Assets
    
280,779
      
296,578
      
237,671
  
 
                        
Total Assets
  
$
1,608,163
    
$
1,602,381
    
$
1,520,066
  
 
The Notes to Financial Statements are an integral part hereof.
 
 
CENTRAL HUDSON BALANCE SHEET (CONT'D) (UNAUDITED)
(In Thousands, except share amounts)
 
 
 
 
 
 
 
 
 
 
 
  
June 30,
    
December 31,
    
June 30,
  
 
  
2012
   
2011
   
2011
 
CAPITALIZATION AND LIABILITIES
  
   
   
 
Capitalization
  
   
   
 
Common Stock (30,000,000 shares authorized: $5 par value; 16,862,087 shares issued and outstanding)
  
$
84,311
    
$
84,311
    
$
84,311
  
Paid-in capital
    
199,980
      
199,980
      
199,980
  
Retained earnings
    
175,609
      
165,965
      
162,424
  
Capital stock expense
    
(4,799
)
    
(4,961
)
    
(4,961
)
Total Equity
    
455,101
      
445,295
      
441,754
  
 
                        
Cumulative Preferred Stock not subject to mandatory redemption
    
9,027
      
21,027
      
21,027
  
 
                        
Long-term debt
    
465,950
      
417,950
      
417,902
  
Total Capitalization
    
930,078
      
884,272
      
880,683
  
 
                        
Current Liabilities
                        
Current maturities of long-term debt
    
-
      
36,000
      
36,000
  
Notes payable
    
7,000
      
1,500
      
-
  
Accounts payable
    
29,317
      
35,731
      
36,276
  
Accrued interest
    
5,680
      
6,183
      
6,948
  
Dividends payable - Preferred Stock
    
-
      
242
      
242
  
Accrued vacation and payroll
    
5,801
      
5,556
      
5,318
  
Customer advances
    
14,247
      
14,604
      
7,689
  
Customer deposits
    
7,220
      
6,582
      
6,859
  
Regulatory liabilities
    
8,182
      
11,161
      
13,456
  
Fair value of derivative instruments
    
11,342
      
19,791
      
11,096
  
Accrued environmental remediation costs
    
8,081
      
6,117
      
2,387
  
Accrued income and other taxes
    
1,500
      
1,274
      
912
  
Accumulated deferred income tax
    
-
      
156
      
-
  
Other
    
12,353
      
14,855
      
10,139
  
Total Current Liabilities
    
110,723
      
159,752
      
137,322
  
 
                        
Deferred Credits and Other Liabilities
                        
Regulatory liabilities - OPEB
    
10,571
      
6,988
      
10,494
  
Regulatory liabilities - other
    
107,168
      
108,887
      
110,267
  
Operating reserves
    
2,518
      
2,120
      
1,841
  
Fair value of derivative instruments
    
973
      
-
      
5,259
  
Accrued environmental remediation costs
    
7,320
      
9,726
      
10,784
  
Accrued OPEB costs
    
51,425
      
53,055
      
45,698
  
Accrued pension costs
    
97,883
      
121,911
      
74,438
  
Tax reserve
    
3,178
      
3,172
      
10,934
  
Other
    
16,668
      
17,955
      
15,900
  
Total Deferred Credits and Other Liabilities
    
297,704
      
323,814
      
285,615
  
 
                        
Accumulated Deferred Income Tax
    
269,658
      
234,543
      
216,446
  
 
                        
Commitments and Contingencies
                        
 
                        
Total Capitalization and Liabilities
  
$
1,608,163
    
$
1,602,381
    
$
1,520,066
  
 
The Notes to Financial Statements are an integral part hereof.
 
 
CENTRAL HUDSON STATEMENT OF EQUITY (UNAUDITED)
 
 
 
 
 
 
(In Thousands, except share amounts)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
Central Hudson Common Shareholders
    
 
  
  
Common Stock
    
Treasury Stock
    
   
   
   
   
 
  
  
Shares Issued
    
Amount
    
Shares Repurchased
    
Amount
    
Paid-In Capital
    
Capital Stock Expense
    
Retained Earnings
    
Accumulated Other Comprehensive Income / (Loss)
    
Total Equity
  
Balance at December 31, 2010
    
16,862,087
    
$
84,311
      
-
    
$
-
    
$
199,980
    
$
(4,961
)
  
$
164,898
    
$
-
    
$
444,228
  
Net income
                                                    
20,011
              
20,011
  
Dividends declared:
                                                                        
On cumulative Preferred Stock
                                                    
(485
)
            
(485
)
On Common Stock to parent -
   CH Energy Group
                                                    
(22,000
)
            
(22,000
)
Balance at June 30, 2011
    
16,862,087
    
$
84,311
      
-
    
$
-
    
$
199,980
    
$
(4,961
)
  
$
162,424
    
$
-
    
$
441,754
  
 
                                                                        
Balance at December 31, 2011
    
16,862,087
    
$
84,311
      
-
    
$
-
    
$
199,980
    
$
(4,961
)
  
$
165,965
    
$
-
    
$
445,295
  
Net income
                                                    
23,404
              
23,404
  
Preferred Stock Redemption
                                            
162
      
(342
)
            
(180
)
Dividends declared:
                                                                        
On cumulative Preferred Stock
                                                    
(418
)
            
(418
)
On Common Stock to parent -
   CH Energy Group
                                                    
(13,000
)
            
(13,000
)
Balance at June 30, 2012
    
16,862,087
    
$
84,311
      
-
    
$
-
    
$
199,980
    
$
(4,799
)
  
$
175,609
    
$
-
    
$
455,101
  
 
The Notes to Financial Statements are an integral part hereof.
 
 
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

NOTE 1 - Summary of Significant Accounting Policies

Basis of Presentation

This Quarterly Report on Form 10-Q is a combined report of CH Energy Group, Inc. ("CH Energy Group") and its regulated electric and natural gas subsidiary, Central Hudson Gas & Electric Corporation ("Central Hudson").  The Notes to the Consolidated Financial Statements apply to both CH Energy Group and Central Hudson.  CH Energy Group's Consolidated Financial Statements include the accounts of CH Energy Group and its wholly owned subsidiaries, which include Central Hudson and CH Energy Group's non-utility subsidiary, Central Hudson Enterprises Corporation ("CHEC").  Operating results of CHEC include its wholly owned subsidiary, Griffith Energy Services, Inc. ("Griffith").  Discontinued operations on CH Energy Group's Consolidated Statements of Income include the operating results of CHEC's subsidiaries which were sold in 2011, including Lyonsdale Biomass, LLC ("Lyonsdale"), Shirley Wind, LLC ("Shirley Wind"), CH-Auburn, LLC ("CH-Auburn") and CH-Greentree, LLC ("CH-Greentree").  Intercompany balances and transactions have been eliminated in consolidation.  See Note 5 - "Acquisitions, Divestitures and Investments" for further information.

The Financial Statements were prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP"), which for regulated public utilities, includes specific accounting guidance for regulated operations.  For additional information regarding regulatory accounting, see Note 2 - "Regulatory Matters."

Pending Acquisition by Fortis Inc.

On February 21, 2012, CH Energy Group announced that it had entered into an agreement and plan of merger under which it agreed, subject to shareholder approval and the approval of applicable regulatory authorities, to be acquired by Fortis Inc. ("Fortis") for $65 per share of common stock in cash.  On June 19, 2012, shareholders of CH Energy Group approved the proposed acquisition of the Company by Fortis.  On July 3, 2012, The Federal Energy Regulatory Commission approved the acquisition of CH Energy Group by Fortis.  On July 17, 2012 the Committee on Foreign Investment in the United States approved the acquisition of CH Energy Group by Fortis.  The transaction remains subject to review by the U.S. Department of Justice, the Federal Trade Commission and the New York State Public Service Commission.

Unaudited Financial Statements

The accompanying Consolidated Financial Statements of CH Energy Group and Financial Statements of Central Hudson are unaudited but, in the opinion of management, reflect adjustments (which include normal recurring adjustments) necessary for a fair statement of the results for the interim periods presented.  These unaudited quarterly Financial Statements do not contain all footnote disclosures concerning accounting policies and other matters which would be included in annual Financial Statements and, accordingly, should be read in conjunction with the audited Financial Statements (including the Notes thereto) included in the combined CH Energy Group/Central Hudson Annual Report on Form 10-K for the year ended December 31, 2011 (the "Corporations' 10-K Annual Report").
 

CH Energy Group's and Central Hudson's balance sheets as of June 30, 2011 are not required to be included in this Quarterly Report on Form 10-Q; however, these balance sheets are included for supplemental analysis purposes.

Reclassification

Certain amounts in the 2011 Financial Statements have been reclassified to conform to the 2012 presentation.  For more information regarding reclassification of discontinued operations, see Note 5 - "Acquisition, Divestitures and Investments."

Revenue Recognition

CH Energy Group's deferred revenue balances as of June 30, 2012, December 31, 2011 and June 30, 2011 were $3.8 million, $4.8 million and $3.6 million, respectively.  The deferred revenue balance will be recognized in CH Energy Group's operating revenues over the 12-month term of the respective customer contract.

As required by the PSC, Central Hudson records gross receipts tax revenues and expenses on a gross income statement presentation basis (i.e., included in both revenue and expenses).  Sales and use taxes for both Central Hudson and Griffith are accounted for on a net basis (excluded from revenue).

Fuel, Materials & Supplies
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The following is a summary of CH Energy Group's and Central Hudson's inventories (In Thousands):
 
 
 
 
CH Energy Group
  
Central Hudson
  
June 30,
  
December 31,
  
June 30,
  
June 30,
  
December 31,
  
June 30,
  
2012
 
2011
 
2011
 
2012
 
2011
 
2011
 
Natural gas
$
7,220
  
$
11,711
  
$
8,436
  
$
7,220
  
$
11,711
  
$
8,436
  
Petroleum products and propane
  
1,267
    
3,422
    
1,495
    
-
    
494
    
519
  
Fuel used in electric generation
  
284
    
285
    
263
    
284
    
285
    
263
  
Materials and supplies
  
10,027
    
9,696
    
10,268
    
8,947
    
8,547
    
8,915
  
Total
$
18,798
  
$
25,114
  
$
20,462
  
$
16,451
  
$
21,037
  
$
18,133
  
 
- 14 -
 
Depreciation and Amortization

Current accounting guidance related to asset retirements precludes the recognition of expected future retirement obligations as a component of depreciation expense or accumulated depreciation.  Central Hudson, however, is required to use depreciation methods and rates approved by the PSC under regulatory accounting.  These depreciation rates include a charge for the cost of future removal and retirement of fixed assets.  In accordance with current accounting guidance for regulated operations, Central Hudson continues to accrue for the future cost of removal for its rate-regulated natural gas and electric utility assets.  In accordance with current accounting guidance related to asset retirements, Central Hudson has classified $53.3 million, $52.6 million, and $53.0 million of cost of removal as regulatory liabilities as of June 30, 2012, December 31, 2011, and June 30, 2011, respectively.  This liability represents the portion of the cost of removal charge in excess of the amount reported as an Asset Retirement Obligation under GAAP.

See Note 6 - "Goodwill and Other Intangible Assets" for further discussion of amortization of intangibles (other than goodwill).

Earnings Per Share

In the calculation of earnings per share (basic and diluted) of CH Energy Group's Common Stock, earnings for CH Energy Group are reduced by the Preferred Stock dividends of Central Hudson.

The average dilutive effect of CH Energy Group's stock options, performance shares and restricted shares are as follows:

 
  
Three Months Ended
    
Six Months Ended
  
 
  
June 30,
    
June 30,
  
 
  
2012
    
2011
    
2012
    
2011
  
Shares
    
221,617
      
198,077
      
221,617
      
197,589
  
 
Certain stock options can be excluded from the calculation of diluted earnings per share because the exercise prices of those options were greater than the average market price per share of Common Stock.  There were no options excluded during the three and six months ended June 30, 2012 or 2011.
 
- 15 -
 
Parental Guarantees

CH Energy Group and CHEC have issued guarantees to counterparties to assure the payment, when due, of certain obligations incurred by CH Energy Group subsidiaries, in physical and financial transactions.

 
June 30, 2012
  
Transaction Description
Maximum Potential
Payments
  
Outstanding
Liabilities(1)
  
Heating oil, propane, other petroleum products, weather and commodity hedges (In Thousands)
$
26,250
  
$
4,189
  
 
(1)
Balance included in CH Energy Group's Consolidated Balance Sheet.
 
Management is not aware of any existing condition that would require payment under the guarantees.
 
Common Stock Dividends

On May 31, 2012, the Board of Directors of CH Energy Group declared a quarterly dividend of 55.5 cents per share payable August 2, 2012, to shareholders of record as of July 10, 2012.

CH Energy Group's ability to pay dividends is affected by the ability of its subsidiaries to pay dividends.  The Federal Power Act limits the payment of dividends by Central Hudson to its retained earnings.  More restrictive is the PSC's limit on the dividends Central Hudson may pay to CH Energy Group which is 100% of the average annual income available for common stock, calculated on a two-year rolling average basis.  Based on this calculation, Central Hudson was restricted to a maximum payment of $44.6 million in dividends to CH Energy Group for the year ended December 31, 2011.  Central Hudson's dividend would be reduced to 75% of its average annual income in the event of a downgrade of its senior debt rating below "BBB+" by more than one rating agency if the stated reason for the downgrade is related to any of CH Energy Group's or Central Hudson's affiliates.  Further restrictions are imposed for any downgrades below this level.  For the three and six months ended June 30, 2012, Central Hudson declared and paid dividends of $13.0 million to parent CH Energy Group.  CH Energy Group's other subsidiaries do not have express restrictions on their ability to pay dividends.
 
 
NOTE 2 - Regulatory Matters

Summary of Regulatory Assets and Liabilities
 
 
 
 
 
The following table sets forth Central Hudson's regulatory assets and liabilities (In Thousands):
 
 
  
June 30,
    
December 31,
    
June 30,
  
 
  
2012
   
2011
   
2011
 
Regulatory Assets (Debits):
  
   
   
 
Current:
  
   
   
 
Deferred purchased electric and natural gas costs
  
$
10,520
    
$
10,775
    
$
6,522