Edgar Filing: CH ENERGY GROUP INC

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__________________________September 30, 2008

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.	14-1804460
	(Incorporated in New York)
	284 South Avenue
	Poughkeepsie, New York 12601-4879
	(845) 452-2000

1-3268	Central Hudson Gas & Electric Corporation	14-0555980
	(Incorporated in New York)
	284 South Avenue
	Poughkeepsie, New York 12601-4879
	(845) 452-2000

Indicate by check mark whether the Registrants (1) have 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) have been subject to such filing requirements for the past 90 days.

Yes x No o

Indicate by check mark whether CH Energy Group, Inc. 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):

Large Accelerated Filer x Accelerated Filer o

Non-Accelerated Filer o Smaller Reporting Company o

Indicate by check mark whether Central Hudson Gas & Electric Corporation 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):

Large Accelerated Filer o Accelerated Filer o

Non-Accelerated Filer x Smaller Reporting Company o

Indicate by check mark whether CH Energy Group, Inc. is a shell company (as defined in Rule 12b-2 of the Exchange Act):

Yes o No x

Indicate by check mark whether Central Hudson Gas & Electric Corporation is a shell company (as defined in Rule 12b-2 of the Exchange Act):

Yes o No x

As of the close of business on November 3, 2008, (i) CH Energy Group, Inc. had outstanding 15,783,083 shares of Common Stock ($0.10 per share par value) and (ii) all of the outstanding 16,862,087 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 SEPTEMBER 30, 2008

TABLE OF CONTENTS


		PAGE

PART I – FINANCIAL INFORMATION

Item 1 – Consolidated Financial Statements (Unaudited)

CH ENERGY GROUP, INC.
Consolidated Statement of Income – Three Months Ended September 30, 2008 and 2007		1

Consolidated Statement of Income – Nine Months Ended September 30, 2008 and 2007		2

Consolidated Statement of Comprehensive Income – Three Months Ended September 30, 2008 and 2007		3

Consolidated Statement of Comprehensive Income – Nine Months Ended September 30, 2008 and 2007		3

Consolidated Statement of Cash Flows – Nine Months Ended September 30, 2008 and 2007		4

Consolidated Balance Sheet – September 30, 2008, December 31, 2007 and September 30, 2007		5

CENTRAL HUDSON GAS & ELECTRIC CORPORATION

Consolidated Statement of Income – Three Months Ended September 30, 2008 and 2007		7

Consolidated Statement of Income – Nine Months Ended September 30, 2008 and 2007		8

Consolidated Statement of Comprehensive Income – Three Months Ended September 30, 2008 and 2007		9

Consolidated Statement of Comprehensive Income – Nine Months Ended September 30, 2008 and 2007		9

Consolidated Statement of Cash Flows – Nine Months Ended September 30, 2008 and 2007		10

Consolidated Balance Sheet – September 30, 2008, December 31, 2007 and September 30, 2007		11

Notes to Consolidated Financial Statements		13

ITEM 2	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	49

ITEM 3	QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK	91

ITEM 4	CONTROLS AND PROCEDURES	91

	PART II – OTHER INFORMATION

ITEM 1	LEGAL PROCEEDINGS	92

ITEM 1A	RISK FACTORS	92

ITEM 6	EXHIBITS	93

SIGNATURES		94

EXHIBIT INDEX		95

CERTIFICATIONS		98

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 1 – FINANCIAL INFORMATION

Item 1 – Consolidated Financial Statements

CH ENERGY GROUP CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
(In Thousands, except per share amounts)


	For the 3 Months Ended September 30,
	2008			2007

Operating Revenues
Electric	$	179,001		$	167,949
Natural gas		21,773			21,622
Competitive business subsidiaries:
Petroleum Products		88,618			60,431
Other		11,395			10,114

Total Operating Revenues		300,787			260,116

Operating Expenses
Operation:
Purchased electricity and fuel used in electric generation		116,900			107,706
Purchased natural gas		13,405			13,579
Purchased petroleum		82,002			54,247
Other expenses of operation - regulated activities		39,247			38,589
Other expenses of operation - competitive business subsidiaries		20,508			17,409
Depreciation and amortization		9,713			8,956
Taxes, other than income tax		9,634			8,990

Total Operating Expenses		291,409			249,476

Operating Income		9,378			10,640

Other Income and Deductions
Income from unconsolidated affiliates		123			171
Interest on regulatory assets and investment income		1,339			1,685
Other - net		(41	)		—

Total Other Income		1,421			1,856

Interest Charges
Interest on long-term debt		4,926			4,616
Interest on regulatory liabilities and other interest		1,485			1,340

Total Interest Charges		6,411			5,956


Income before income taxes, preferred dividends of subsidiary and minority interest		4,388			6,540
Income Taxes		1,193			1,885
Minority Interest		68			84

Income before preferred dividends of subsidiary		3,127			4,571
Cumulative preferred stock dividends of subsidiary		242			242

Net Income		2,885			4,329
Dividends Declared on Common Stock		8,523			—

Change in Retained Earnings	$	(5,638	)	$	4,329

Common Stock:
Average shares outstanding
Basic		15,771			15,762
Diluted		15,819			15,785
Earnings per share
Basic	$	0.18		$	0.27
Diluted	$	0.18		$	0.27
Dividends Declared Per Share	$	0.54		$	—

The Notes to Consolidated Financial Statements are an integral part hereof.

- 1 -

CH ENERGY GROUP CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
(In Thousands, except per share amounts)


	For the 9 Months Ended September 30,
	2008			2007

Operating Revenues
Electric	$	468,659		$	470,069
Natural gas		142,267			126,055
Petroleum Products		379,653			250,627
Other		33,653			27,727

Total Operating Revenues		1,024,232			874,478

Operating Expenses
Operation:
Purchased electricity and fuel used in electric generation		291,675			298,974
Purchased natural gas		98,008			84,841
Purchased petroleum		334,982			209,625
Other expenses of operation - regulated activities		123,414			115,747
Other expenses of operation - competitive business subsidiaries		65,716			53,958
Depreciation and amortization		28,722			27,086
Taxes, other than income tax		28,425			26,137

Total Operating Expenses		970,942			816,368

Operating Income		53,290			58,110

Other Income and Deductions
Income from unconsolidated affiliates		459			1,715
Interest on regulatory assets and investment income		4,404			6,079
Other - net		(159	)		(1,018	)

Total Other Income		4,704			6,776

Interest Charges
Interest on long-term debt		15,064			13,603
Interest on regulatory liabilities and other interest		4,116			3,212

Total Interest Charges		19,180			16,815


Income before income taxes, preferred dividends of subsidiary and minority interest		38,814			48,071
Income Taxes		14,102			16,141
Minority Interest		129			(13	)

Income before preferred dividends of subsidiary		24,583			31,943
Cumulative preferred stock dividends of subsidiary		727			727

Net Income		23,856			31,216
Dividends Declared on Common Stock		25,564			17,023

Change in Retained Earnings	$	(1,708	)	$	14,193

Common Stock:
Average shares outstanding
Basic		15,767			15,762
Diluted		15,815			15,786
Earnings per share
Basic	$	1.51		$	1.98
Diluted	$	1.51		$	1.97
Dividends Declared Per Share	$	1.62		$	1.08

The Notes to Consolidated Financial Statements are an integral part hereof.

- 2 -

CH ENERGY GROUP CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(UNAUDITED)
(In Thousands)


	For the 3 Months Ended September 30,
	2008			2007


Net Income	$	2,885		$	4,329

Other Comprehensive Income:

Fair value of cash flow hedges - FAS 133:

Unrealized (losses) gains - net of tax of $125 and ($59)		(188	)		89

Reclassification for gains realized in net income - net of tax of $0 and $2		—			(3	)

Net unrealized (losses) gains on investments held by equity method investees - net of tax of $61 and ($4)		(91	)		6


Other comprehensive (loss) income		(279	)		92


Comprehensive Income	$	2,606		$	4,421


	For the 9 Months Ended September 30,
	2008			2007


Net Income	$	23,856		$	31,216

Other Comprehensive Income:

Fair value of cash flow hedges - FAS 133:

Unrealized gains (losses) - net of tax of ($867) and $123		1,300			(185	)

Reclassification for (gains) losses realized in net income - net of tax of $1,343 and ($425)		(2,014	)		638

Net unrealized (losses) gains on investments held by equity method investees - net of tax of $214 and ($401)		(321	)		601


Other comprehensive (loss) income		(1,035	)		1,054


Comprehensive Income	$	22,821		$	32,270

The Notes to Consolidated Financial Statements are an integral part hereof.

- 3 -

CH ENERGY GROUP CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
(In Thousands)


	For the 9 Months Ended September 30,
	2008			2007

Operating Activities:
Net Income	$	23,856		$	31,216
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		28,722			27,086
Deferred income taxes - net		6,674			5,369
Provision for uncollectibles		7,736			3,989
Undistributed equity in earnings of unconsolidated affiliates		844			(225	)
Pension expense		9,493			9,760
OPEB expense		7,551			7,761
Regulatory liability - rate moderation		(5,901	)		(15,426	)
Regulatory asset amortization		3,322			—
Minority interest		129			(13	)
Gain on sale of property and plant		(98	)		(627	)
Changes in operating assets and liabilities - net of business acquisitions:
Accounts receivable, unbilled revenues and other receivables		15,682			(20,167	)
Fuel and materials and supplies		(14,066	)		(8,809	)
Special deposits and prepayments		4,231			(4,767	)
Prepaid income taxes		—			6,801
Accounts payable		11,352			(1,749	)
Accrued taxes and interest		(2,264	)		(2,213	)
Customer advances		2,577			(2,947	)
Pension plan contribution		(12,895	)		(6,214	)
OPEB contribution		(4,200	)		(4,747	)
Regulatory asset - MGP site remediations		(1,051	)		(4,805	)
Deferred natural gas and electric costs		(4,832	)		(598	)
Customer benefit fund		(369	)		(614	)
Other - net		1,464			12,695

Net cash provided by operating activities		77,957			30,756

Investing Activities:
Purchase of short-term investments		—			(54,451	)
Proceeds from sale of short-term investments		3,545			76,812
Issuance of notes receivable		—			(3,993	)
Proceeds from sale of property and plant		181			4,574
Additions to utility and other property and plant		(62,573	)		(61,599	)
Acquisitions made by competitive business subsidiaries		(9,262	)		(17,705	)
Other - net		958			(779	)

Net cash used in investing activities		(67,151	)		(57,141	)

Financing Activities:
Redemption of long-term debt		—			(33,000	)
Proceeds from issuance of long-term debt		—			66,000
Borrowings of short-term debt - net		9,000			23,000
Dividends paid on common stock		(25,559	)		(25,535	)
Other		5,765			(598	)

Net cash (used in) provided by financing activities		(10,794	)		29,867

Net Change in Cash and Cash Equivalents		12			3,482
Cash and Cash Equivalents at Beginning of Period		11,313			24,121

Cash and Cash Equivalents at End of Period	$	11,325		$	27,603

Supplemental Disclosure of Cash Flow Information:
Interest paid	$	18,475		$	17,442
Federal and state income tax paid	$	9,986		$	12,496
Additions to plant included in liabilities	$	16,349		$	2,599

The Notes to Consolidated Financial Statements are an integral part hereof.

- 4 -

CH ENERGY GROUP CONSOLIDATED BALANCE SHEET (UNAUDITED)
(In Thousands)


ASSETS	September 30, 2008		December 31, 2007		September 30, 2007


Utility Plant
Electric	$	842,006	$	807,412	$	798,503
Natural gas		259,377		248,894		244,166
Common		118,148		113,494		115,343

		1,219,531		1,169,800		1,158,012

Less: Accumulated depreciation		368,065		354,353		353,867

		851,466		815,447		804,145

Construction work in progress		80,302		75,866		60,868

Net Utility Plant		931,768		891,313		865,013


Other Property and Plant - net		32,607		31,236		30,131

Current Assets
Cash and cash equivalents		11,325		11,313		27,603
Short-term investments - available-for-sale securities		—		3,545		20,250
Accounts receivable from customers - net of allowance for doubtful accounts of $6.5 million, $4.8 million, and $4.5 million, respectively		119,338		139,107		101,907
Accrued unbilled utility revenues		8,087		12,022		7,826
Other receivables		6,854		6,568		4,785
Fuel and materials and supplies		47,794		33,321		38,170
Regulatory assets		52,179		35,012		38,332
Prepaid income tax		—		—		4,443
Fair value of derivative instruments		28		1,218		143
Special deposits and prepayments		23,904		28,108		28,389
Accumulated deferred income tax		7,077		7,378		6,011

Total Current Assets		276,586		277,592		277,859


Deferred Charges and Other Assets
Regulatory assets - pension plan		40,641		51,393		88,147
Regulatory assets - OPEB		—		15,967		30,394
Regulatory assets		117,075		86,821		84,520
Goodwill		67,564		63,433		58,450
Other intangible assets - net		37,037		35,720		34,508
Unamortized debt expense		4,067		4,345		4,370
Investments in unconsolidated affiliates		9,882		12,226		12,676
Other investments		9,464		8,613		8,390
Other		16,146		16,089		16,218

Total Deferred Charges and Other Assets		301,876		294,607		337,673


Total Assets	$	1,542,837	$	1,494,748	$	1,510,676

The Notes to Consolidated Financial Statements are an integral part hereof.

- 5 -

CH ENERGY GROUP CONSOLIDATED BALANCE SHEET (CONT’D) (UNAUDITED)
(In Thousands)


CAPITALIZATION AND LIABILITIES	September 30, 2008			December 31, 2007			September 30, 2007

Capitalization
Common Stock, 30,000,000 shares authorized: $0.10 par value - 15,783,083 shares outstanding at September 30, 2008; 15,762,000 shares outstanding at December 31, and September 30, 2007; 16,862,087 shares issued	$	1,686		$	1,686		$	1,686
Paid-in capital		350,828			351,230			351,230
Retained earnings		213,931			215,639			221,248
Treasury stock (1,079,004 shares September 30, 2008; 1,100,087 shares December 31, and September 30, 2007)		(45,386	)		(46,252	)		(46,252	)
Accumulated other comprehensive income		138			1,173			525
Capital stock expense		(328	)		(328	)		(328	)

Total Common Shareholders’ Equity		520,869			523,148			528,109

Cumulative Preferred Stock
Not subject to mandatory redemption		21,027			21,027			21,027
Long-term debt		383,893			403,892			403,891

Total Capitalization		925,789			948,067			953,027

Current Liabilities
Current maturities of long-term debt		20,000			—			—
Notes payable		51,500			42,500			36,000
Accounts payable		54,596			44,880			38,480
Accrued interest		4,288			6,127			3,432
Dividends payable		8,765			8,760			242
Accrued vacation and payroll		6,485			7,640			6,586
Customer advances		25,622			23,045			22,785
Customer deposits		8,413			8,126			8,065
Regulatory liabilities		3,922			9,392			12,226
Fair value of derivative instruments		14,080			1,235			7,284
Accrued environmental remediation costs		7,876			2,703			2,562
Accrued income taxes		409			834			—
Deferred revenues		7,424			7,437			5,724
Other		31,651			16,820			15,689

Total Current Liabilities		245,031			179,499			159,075

Deferred Credits and Other Liabilities
Regulatory liabilities		128,814			111,663			105,382
Regulatory liabilities - OPEB		10,519			—			—
Operating reserves		4,802			5,212			5,219
Accrued environmental remediation costs		21,860			15,027			15,542
Accrued OPEB costs		30,019			55,560			70,217
Accrued pension costs		474			11,202			43,823
Other		13,795			19,805			13,171

Total Deferred Credits and Other Liabilities		210,283			218,469			253,354

Minority Interest		1,474			1,345			1,454

Accumulated Deferred Income Tax		160,260			147,368			143,766

Commitments and Contingencies
Total Capitalization and Liabilities	$	1,542,837		$	1,494,748		$	1,510,676

The Notes to Consolidated Financial Statements are an integral part hereof.

- 6 -

CENTRAL HUDSON CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
(In Thousands)


	For the 3 Months Ended September 30,
	2008		2007

Operating Revenues
Electric	$	179,001	$	167,949
Natural gas		21,773		21,622

Total Operating Revenues		200,774		189,571


Operating Expenses
Operation:
Purchased electricity and fuel used in electric generation		115,413		106,255
Purchased natural gas		13,405		13,579
Other expenses of operation		39,247		38,589
Depreciation and amortization		7,566		7,083
Taxes, other than income tax		9,452		8,864

Total Operating Expenses		185,083		174,370


Operating Income		15,691		15,201


Other Income and Deductions
Interest on regulatory assets and other interest income		962		1,002
Other - net		120		18

Total Other Income		1,082		1,020


Interest Charges
Interest on other long-term debt		4,926		4,616
Interest on regulatory liabilities and other interest		1,374		1,339

Total Interest Charges		6,300		5,955


Income Before Income Taxes		10,473		10,266

Income Taxes		4,346		4,161


Net Income		6,127		6,105

Dividends Declared on Cumulative Preferred Stock		242		242


Income Available for Common Stock	$	5,885	$	5,863

The Notes to Consolidated Financial Statements are an integral part hereof.

- 7 -

CENTRAL HUDSON CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)
(In Thousands)


	For the 9 Months Ended September 30,
	2008		2007

Operating Revenues
Electric	$	468,659	$	470,069
Natural gas		142,267		126,055

Total Operating Revenues		610,926		596,124


Operating Expenses
Operation:
Purchased electricity and fuel used in electric generation		287,156		295,268
Purchased natural gas		98,008		84,841
Other expenses of operation		123,414		115,747
Depreciation and amortization		22,380		21,513
Taxes, other than income tax		27,886		25,720

Total Operating Expenses		558,844		543,089


Operating Income		52,082		53,035


Other Income and Deductions
Interest on regulatory assets and other interest income		3,290		4,090
Other - net		558		(541	)

Total Other Income		3,848		3,549


Interest Charges
Interest on other long-term debt		15,064		13,603
Interest on regulatory liabilities and other interest		3,589		3,211

Total Interest Charges		18,653		16,814


Income Before Income Taxes		37,277		39,770

Income Taxes		15,212		15,032


Net Income		22,065		24,738

Dividends Declared on Cumulative Preferred Stock		727		727


Income Available for Common Stock	$	21,338	$	24,011

The Notes to Consolidated Financial Statements are an integral part hereof.

- 8 -

CENTRAL HUDSON CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)
(In Thousands)


	For the 3 Months Ended September 30,
	2008		2007


Net Income	$	6,127	$	6,105
Other Comprehensive Income		—		—


Comprehensive Income	$	6,127	$	6,105


	For the 9 Months Ended September 30,
	2008		2007


Net Income	$	22,065	$	24,738
Other Comprehensive Income		—		—


Comprehensive Income	$	22,065	$	24,738

The Notes to Consolidated Financial Statements are an integral part hereof.

- 9 -

CENTRAL HUDSON CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
(In Thousands)


	For the 9 Months Ended September 30,
	2008			2007

Operating Activities:
Net Income	$	22,065		$	24,738
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		22,380			21,513
Deferred income taxes - net		4,090			4,401
Provision for uncollectibles		5,326			3,316
Pension expense		9,493			9,760
OPEB expense		7,551			7,761
Regulatory liability - rate moderation		(5,901	)		(15,426	)
Regulatory asset amortization		3,322			—
Gain on sale of property and plant		—			(468	)
Changes in operating assets and liabilities - net:
Accounts receivable, unbilled revenues and other receivables		7,751			(21,817	)
Fuel and materials and supplies		(15,729	)		(8,369	)
Special deposits and prepayments		5,093			(1,356	)
Prepaid income taxes		—			6,969
Accounts payable		15,857			(2,871	)
Accrued taxes and interest		899			(2,213	)
Customer advances		(5,194	)		(7,223	)
Pension plan contribution		(12,895	)		(6,214	)
OPEB contribution		(4,200	)		(4,747	)
Regulatory asset - MGP site remediations		(1,051	)		(4,805	)
Deferred natural gas and electric costs		(4,832	)		(598	)
Customer benefit fund		(369	)		(614	)
Other - net		3,360			12,381

Net cash provided by operating activities		57,016			14,118

Investing Activities:
Proceeds from sale of property and plant		—			862
Additions to utility plant		(58,268	)		(59,827	)
Other - net		(1,180	)		(541	)

Net cash used in investing activities		(59,448	)		(59,506	)

Financing Activities:
Redemption of long-term debt		—			(33,000	)
Proceeds from issuance of long-term debt		—			66,000
(Repayments) borrowings of short-term debt - net		(6,000	)		23,000
Dividends paid on cumulative preferred stock		(727	)		(727	)
Dividends paid to parent - CH Energy Group		—			(8,500	)
Other		5,765			(598	)

Net cash (used in) provided by financing activities		(962	)		46,175

Net Change in Cash and Cash Equivalents		(3,394	)		787
Cash and Cash Equivalents - Beginning of Period		3,592			1,710

Cash and Cash Equivalents - End of Period	$	198		$	2,497

Supplemental Disclosure of Cash Flow Information:
Interest paid	$	17,950		$	17,442
Federal and state income tax paid	$	8,642		$	12,322
Plant additions in liabilities	$	16,349		$	2,599

The Notes to Consolidated Financial Statements are an integral part hereof.

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CENTRAL HUDSON CONSOLIDATED BALANCE SHEET (UNAUDITED)
(In Thousands)


ASSETS	September 30, 2008		December 31, 2007		September 30, 2007


Utility Plant
Electric	$	842,006	$	807,412	$	798,503
Natural gas		259,377		248,894		244,166
Common		118,148		113,494		115,343

		1,219,531		1,169,800		1,158,012

Less: Accumulated depreciation		368,065		354,353		353,867

		851,466		815,447		804,145

Construction work in progress		80,302		75,866		60,868

Net Utility Plant		931,768		891,313		865,013


Other Property and Plant - net		413		415		416


Current Assets
Cash and cash equivalents		198		3,592		2,497
Accounts receivable from customers - net of allowance for doubtful accounts of $3.6 million, $2.8 million, and $2.7 million, respectively		72,206		81,264		70,438
Accrued unbilled utility revenues		8,087		12,022		7,826
Other receivables		2,774		2,858		1,654
Fuel and materials and supplies - at average cost		39,999		24,270		31,173
Regulatory assets		52,179		35,012		38,332
Prepaid income tax		—		—		3,508
Special deposits and prepayments		19,415		24,481		22,365
Accumulated deferred income tax		5,754		6,676		5,064

Total Current Assets		200,612		190,175		182,857


Deferred Charges and Other Assets
Regulatory assets - pension plan		40,641		51,393		88,147
Regulatory assets - OPEB		—		15,967		30,394
Regulatory assets		117,075		86,821		84,520
Unamortized debt expense		4,067		4,345		4,370
Other investments		9,325		8,570		8,357
Other		3,338		3,695		4,108

Total Deferred Charges and Other Assets		174,446		170,791		219,896


Total Assets	$	1,307,239	$	1,252,694	$	1,268,182

The Notes to Consolidated Financial Statements are an integral part hereof.

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CENTRAL HUDSON CONSOLIDATED BALANCE SHEET (CONT’D) (UNAUDITED)
(In Thousands)


CAPITALIZATION AND LIABILITIES	September 30, 2008			December 31, 2007			September 30, 2007

Capitalization
Common Stock, 30,000,000 shares authorized; 16,862,087 shares issued and outstanding, $5 par value	$	84,311		$	84,311		$	84,311
Paid-in capital		174,980			174,980			174,980
Retained earnings		114,014			92,676			84,221
Capital stock expense		(4,961	)		(4,961	)		(4,961	)

Total Common Shareholders’ Equity		368,344			347,006			338,551

Cumulative Preferred Stock
Not subject to mandatory redemption		21,027			21,027			21,027

Long-term debt		383,893			403,892			403,891

Total Capitalization		773,264			771,925			763,469

Current Liabilities
Current maturities of long-term debt		20,000			—			—
Notes payable		36,500			42,500			36,000
Accounts payable		43,992			29,771			27,936
Accrued interest		4,275			6,127			3,432
Dividends payable - preferred stock		242			242			242
Accrued vacation and payroll		4,537			5,235			5,005
Customer advances		5,648			10,842			8,684
Customer deposits		8,285			7,990			7,943
Regulatory liabilities		3,922			9,392			12,226
Fair value of derivative instruments		14,080			1,235			7,284
Accrued income taxes		6,040			3,289			—
Accrued environmental remediation costs		7,680			2,450			2,304
Other		25,666			10,695			10,276

Total Current Liabilities		180,867			129,768			121,332

Deferred Credits and Other Liabilities
Regulatory liabilities		128,814			111,663			105,382
Regulatory liabilities - OPEB		10,519			—			—
Operating reserves		3,776			4,243			4,171
Accrued environmental remediation costs		20,640			13,679			14,161
Accrued OPEB costs		30,019			55,560			70,217
Accrued pension costs		474			11,202			43,823
Other		13,225			19,390			12,502

Total Deferred Credits and Other Liabilities		207,467			215,737			250,256

Accumulated Deferred Income Tax		145,641			135,264			133,125

Commitments and Contingencies

Total Capitalization and Liabilities	$	1,307,239		$	1,252,694		$	1,268,182

The Notes to Consolidated Financial Statements are an integral part hereof.

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NOTES TO CONSOLIDATED 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’s wholly owned subsidiary Griffith Energy Services, Inc. (“Griffith”) and CHEC’s Lyonsdale Biomass, LLC (“Lyonsdale”) subsidiary are consolidated in the financial statements of CH Energy Group. The minority interest shown on CH Energy Group’s Consolidated Financial Statements represents the minority owner’s proportionate share of the income and equity of Lyonsdale. Intercompany balances and transactions have been eliminated in consolidation.

The Consolidated Financial Statements were prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”), which for regulated public utilities, includes the Financial Accounting Standards Board’s (“FASB”) Statement of Financial Accounting Standards (“SFAS”) No. 71, Accounting for the Effects of Certain Types of Regulation (“SFAS 71”).

Unaudited Consolidated Financial Statements

The accompanying Consolidated Financial Statements of CH Energy Group and 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 condensed, unaudited, quarterly Consolidated Financial Statements do not contain the detail or footnote disclosures concerning accounting policies and other matters which would be included in annual Consolidated Financial Statements and, accordingly, should be read in conjunction with the audited Consolidated 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, 2007 (the “Corporations’ 10-K Annual Report”).

CH Energy Group’s and Central Hudson’s balance sheets as of September 30, 2007, are not required to be included in this Quarterly Report on Form 10-Q; however, these balance sheets are included for supplemental analysis purposes.

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Reclassification

Certain amounts in the 2007 Consolidated Financial Statements have been reclassified to conform to the 2008 presentation.

Cash and Cash Equivalents

For purposes of the Consolidated Statement of Cash Flows and the Consolidated Balance Sheet, CH Energy Group and Central Hudson consider temporary cash investments with a maturity (when purchased) of three months or less, to be cash equivalents. The Company reclassifies cash overdrafts to other current liabilities. Cash overdrafts included in other current liabilities were $5.8 million as of September 30, 2008. There were no cash overdrafts as of December 31, 2007 and September 30, 2007.

Revenue Recognition

Reference is made to the caption “Revenue Recognition” of Note 1 – “Summary of Significant Accounting Policies” to the Consolidated Financial Statements of the Corporations’ 10-K Annual Report. CH Energy Group’s deferred revenue balances as of September 30, 2008, December 31, 2007 and September 30, 2007 were $7.4 million, $7.4 million, and $5.7 million, respectively. The deferred revenue balance will be recognized in competitive business subsidiaries operating revenues over the 12-month term of the respective customer contract.

As required by the New York State Public Service Commission (“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).

Depreciation and Amortization

Reference is made to the caption “Depreciation and Amortization” of Note 1 – “Summary of Significant Accounting Policies” to the Consolidated Financial Statements of the Corporations’ 10-K Annual Report. For financial statement purposes, Central Hudson’s depreciation provisions are computed on the straight-line method using rates based on studies of the estimated useful lives and estimated net salvage value of properties. The anticipated costs of removing assets upon retirement are provided for over the life of those assets as a component of depreciation expense. This depreciation method is consistent with industry practice and the applicable depreciation rates have been approved by the PSC.

SFAS No. 143, titled Accounting for Asset Retirement Obligations (“SFAS 143”), precludes the recognition of expected future retirement obligations as a component of depreciation expense or accumulated depreciation. Central Hudson, however, is

- 14 -

required to use depreciation methods and rates approved by the PSC under regulatory accounting. In accordance with SFAS 71, Central Hudson continues to accrue for the future cost of removal for its rate-regulated natural gas and electric utility assets. In accordance with SFAS 143, Central Hudson has classified $49.5 million, $47.8 million, and $47.2 million of net cost of removal as regulatory liabilities as of September 30, 2008, December 31, 2007, and September 30, 2007, respectively. For further information, see Note 1 – “Summary of Significant Accounting Policies” under the caption “Depreciation and Amortization” to the Consolidated Financial Statements of the Corporations’ 10-K Annual Report.

For financial statement purposes, both Griffith and Lyonsdale have depreciation provisions that are computed on the straight-line method using depreciation rates based on the estimated useful lives of depreciable property and equipment. Expenditures for major renewals and betterments, which extend the useful lives of property and equipment, are capitalized. Expenditures for maintenance and repairs are charged to expense when incurred. Retirements, sales, and disposals of assets are recorded by removing the cost and accumulated depreciation from the asset and accumulated depreciation accounts with any resulting gain or loss reflected in earnings.

CH Energy Group’s depreciation expense, which includes Central Hudson, Griffith, and Lyonsdale, was $25.6 million and $24.6 million for the nine months ended September 30, 2008, and September 30, 2007, respectively.

Accumulated depreciation for Griffith was $22.7 million, $20.5 million, and $19.7 million as of September 30, 2008, December 31, 2007, and September 30, 2007, respectively.

Accumulated depreciation for Lyonsdale was $2.0 million, $1.3 million, and $1.1 million as of September 30, 2008, December 31, 2007, and September 30, 2007, respectively.

Amortization of intangibles (other than goodwill) is computed on the straight-line method over an asset’s expected useful life. See Note 6 – “Goodwill and Other Intangible Assets” for further discussion.

Earnings Per Share

Reference is made to the caption “Earnings Per Share” of Note 1 – “Summary of Significant Accounting Policies” to the Consolidated Financial Statements of the Corporations’ 10-K Annual Report.

In the calculation of earnings per share (basic and diluted) of CH Energy Group’s common stock (“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 was 47,827 shares and 23,097 shares for the quarters ended September 30, 2008 and 2007, respectively.

- 15 -

The average dilutive effect of CH Energy Group’s stock options, performance shares and restricted shares was 47,814 shares and 23,473 shares for the nine months ended September 30, 2008 and 2007, respectively. Certain stock options are 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 for some of the periods presented. Excluded from the calculation were options for 39,980 shares for the three and nine months ended September 30, 2008, and 18,420 shares for the three and nine months ended September 30, 2007. For additional information regarding stock options and performance shares, see Note 11 – “Equity-Based Compensation.”

Equity-Based Compensation

CH Energy Group has an equity-based employee compensation plan that is described in Note 11 – “Equity-Based Compensation.”

Parental Guarantees

Reference is made to the captions “Parental Guarantees” of Note 1 – “Summary of Significant Accounting Policies” to the Consolidated Financial Statements of the Corporations’ 10-K Annual Report. CH Energy Group and CHEC have issued guarantees in conjunction with certain commodity and derivative contracts that provide financial or performance assurance to third parties on behalf of a subsidiary. The guarantees are entered into primarily to support or enhance the creditworthiness otherwise attributed to a subsidiary on a stand-alone basis, thereby facilitating the extension of sufficient credit to accomplish the relevant subsidiary’s intended commercial purposes.

The guarantees described above have been issued to counter-parties to assure the payment, when due, of certain obligations incurred by CH Energy Group subsidiaries in physical and financial transactions related to heating oil, propane, other petroleum products, and weather and commodity hedges. At September 30, 2008, the aggregate amount of subsidiary obligations covered by these guarantees was $21.4 million. Where liabilities exist under the commodity-related contracts subject to these guarantees, these liabilities are included in CH Energy Group’s Consolidated Balance Sheet.

Other Guarantees

Central Hudson has a reimbursement obligation with respect to a $6.8 million standby letter of credit issued by a financial institution to support a real estate transaction that is expected to close in mid-2009. No premium has been received or is receivable by Central Hudson in connection with this letter of credit. This uncollateralized letter of credit was issued February 29, 2008 and expires September 30, 2009. The maximum potential amount of future payments Central Hudson could be required to make under this reimbursement obligation is $6.8 million. As of September

- 16 -

30, 2008, no events or circumstances had arisen that would require Central Hudson to perform under this reimbursement obligation, and the carrying amount of the liability was zero.

Product Warranties

Griffith offers a multi-year warranty on heating system installations and has recorded liabilities for the estimated costs of fulfilling its obligations under these warranties. CH Energy Group’s approximate aggregate potential liability for product warranties at September 30, 2008, December 31, 2007 and September 30, 2007 was not material. CH Energy Group’s liabilities for these product warranties were determined by accruing the present value of future warranty expense based on the number and type of contracts outstanding and historical costs for these contracts.

FASB Interpretation Number (FIN) 46R – Consolidation of Variable Interest Entities

Reference is made to the caption “FIN 46 – Consolidation of Variable Interest Entities” of Note 1 – “Summary of Significant Accounting Policies” to the Consolidated Financial Statements of the Corporations’ 10-K Annual Report.

CH Energy Group and its subsidiaries do not have any interests in special purpose entities and do not have material affiliations with any variable interest entities that require consolidation under the provisions of FIN 46R.

Fair Value Measurements

CH Energy Group adopted SFAS No. 157, Fair Value Measurements (“SFAS 157”) on January 1, 2008. The guidance in SFAS 157 establishes a framework for measuring fair value in GAAP, improves consistency and comparability in reporting fair value, and expands disclosures regarding fair value measurements.

SFAS 157 establishes a fair value hierarchy to prioritize the inputs used in valuation techniques based on observable and unobservable data, but not the valuation techniques themselves. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing an asset or a liability. Classification of inputs is determined based on the lowest level input that is significant to the overall valuation. The fair value hierarchy prioritizes the inputs to valuation techniques into the three categories described below.


§	Level 1 Inputs: Quoted prices (unadjusted) in active markets for identical assets or liabilities.

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§	Level 2 Inputs: Directly or indirectly observable (market-based) information. This includes quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.

§	Level 3 Inputs: Unobservable inputs for the asset or liability for which there is either no market data, or for which asset and liability values are not correlated with market value.

On September 30, 2008, CH Energy Group reported one major category of assets at fair value: derivative contracts. Derivative contracts are measured on a recurring basis. The fair value of CH Energy Group’s reportable assets and liabilities at September 30, 2008 by category and hierarchy level follows.

Fair Value Measure at
September 30, 2008
Using


Asset or Liability Category	Fair Value as of September 30, 2008			Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)


Liabilities

Derivative Contracts

Central Hudson - Electric	$	(3,807	)	$	—		$	—	$	(3,807	)
Central Hudson - Natural Gas		(10,273	)		(10,273	)		—		—

TOTAL LIABILITIES	$	(14,080	)	$	(10,273	)	$	—	$	(3,807	)

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The table listed below provides a reconciliation of the beginning and ending net balances for assets and liabilities measured at fair value and classified as Level 3 in the fair value hierarchy for the three and nine months ended September 30, 2008:


	Three Months Ended September 30, 2008			Nine Months Ended September 30, 2008

	(in Thousands)


Balance at Beginning of Period	$	8,362		$	77

Unrealized gains and (losses)		(12,130	)		(2,697	)
Realized gains and (losses)		(39	)		(1,187	)
Purchases, issuances, sales and settlements		—			—
Transfers in and/or out of Level 3		—			—


Balance at End of Period	$	(3,807	)	$	(3,807	)


The amount of total gains or losses for the period included in earnings attributable to the change in unrealized gains or losses relating to derivatives still held at September 30, 2008	$	—		$	—

Derivative Contracts – CH Energy Group’s derivative contracts are typically either exchange-traded or over-the counter (“OTC”) instruments. Exchange-traded and OTC derivatives are valued based on listed market prices. On September 30, 2008, Central Hudson’s derivative contracts were comprised of wholesale contracts for differences (“Swap Contracts”) for electricity and natural gas. Electric Swap Contracts are valued using the New York Independent System Operator (“NYISO”) Swap Futures Closing Price as posted on NYMEX Clearport and have been classified as Level 3 assets in the fair value hierarchy since Clearport uses unobservable inputs in its determination of the futures closing price. Management believes these prices approximate fair value for these instruments. Natural gas Swap Contracts are valued using the NYMEX Natural Gas Futures Closing Price plus the NYMEX Clearport Natural Gas Basis Swap Futures Closing Price or counterparty valuations, and have been classified within Level 1 of the fair value hierarchy. For natural gas Swap Contracts valued using the NYMEX Natural Gas Futures Closing Price plus the NYMEX Clearport Natural Gas Basis Swap Futures Closing Price, the latter component is immaterial. As of September 30, 2008, all of Central Hudson’s open electric and natural gas Swap Contracts were in a liability position and therefore the only credit risk considered in the

- 19 -

fair value assessment is that associated with Central Hudson. Based on Central Hudson’s current senior unsecured debt ratings by Moody’s, S&P and Fitch, management has concluded that the credit risk associated with Central Hudson’s nonperformance related to these instruments is not significant and therefore no adjustment was made to the fair value. Unrealized gains and losses on Central Hudson’s derivative contracts have no impact on earnings. Realized gains and losses on Central Hudson’s derivative instruments are conveyed to or recovered from customers through PSC-authorized deferral accounting mechanisms, with no impact on cash flows, results of operations, or liquidity. Realized gains and losses on Central Hudson’s Level 3 energy derivative assets are reported as part of purchased electricity and fuel used in electric generation in Central Hudson’s Consolidated Statement of Income as the corresponding amounts are either recovered from or returned to customers through electric cost adjustment clauses in revenues. Central Hudson’s derivative contracts also include weather hedging instruments and interest rate call options, the fair values of which are immaterial.

The fair value of Griffith’s derivative positions on September 30, 2008 was immaterial.

For additional information about CH Energy Group’s derivative contracts, see Note 14 – “Accounting for Derivative Instruments and Hedging Activities.”

Income Tax

Reference is made to Note 4 – “Income Tax” to the Consolidated Financial Statements of the Corporations’ 10-K Annual Report.

Common Stock Dividends

CH Energy Group’s ability to pay dividends may be 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. 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 CH Energy Group or any of Central Hudson’s affiliates. Further restrictions are imposed for any downgrades below this level. Central Hudson is currently rated “A” or the equivalent. As of September 30, 2008, the amount of Central Hudson’s retained earnings that were free of restrictions was $30.2 million. CH Energy Group’s other subsidiaries do not have restrictions on their ability to pay dividends.

On September 30, 2008, the Board of Directors of CH Energy Group declared a quarterly dividend of $0.54 per share, payable November 3, 2008, to shareholders of record as of October 10, 2008.

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On October 2, 2007, the Board of Directors of CH Energy Group declared a quarterly dividend of $0.54 per share, payable November 1, 2007, to shareholders of record as of October 12, 2007. Although this dividend was declared at the beginning of the fourth quarter, it represented the third quarter 2007 dividend declaration.

NOTE 2 – REGULATORY MATTERS

Reference is made to the captions “2001 Rate Order” and “2006 Rate Order” of Note 2 – “Regulatory Matters” to the Consolidated Financial Statements of the Corporations’ 10-K Annual Report.

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Summary of Regulatory Assets and Liabilities

The following table sets forth Central Hudson’s regulatory assets and liabilities:


	September 30, 2008		December 31, 2007		September 30, 2007

	(In Thousands)
Regulatory Assets (Debits):

Current:
Deferred purchased electric and natural gas costs	$	34,309	$	29,477	$	26,765
FAS 133 - deferred unrealized losses		14,080		1,235		7,284
Residual natural gas deferred balances		3,790		4,300		4,283

		52,179		35,012		38,332

Long-term:
Deferred pension costs		40,641		51,393		88,147
Carrying charges - pension reserve		9,621		6,477		5,275
Deferred costs - manufactured gas sites		30,704		17,386		17,459
Deferred OPEB costs		—		15,967		30,394
Deferred debt expense on re-acquired debt		5,589		6,032		6,180
Residual natural gas deferred balances		21,909		25,298		26,181
Income taxes recoverable through future rates		38,312		22,399		20,557
Other		10,940		9,229		8,868

		157,716		154,181		203,061


Total Regulatory Assets	$	209,895	$	189,193	$	241,393

Regulatory Liabilities (Credits):

Current:
Rate moderation - excess electric depreciation reserve	$	—	$	5,930	$	8,748
Income taxes refundable through future rates		3,922		3,462		3,478

		3,922		9,392		12,226

Long-term:
Customer benefit fund		4,496		4,865		5,145
Deferred cost of removal		49,513		47,819		47,167
Excess electric depreciation reserve		32,399		32,371		32,552
Income taxes refundable through future rates		17,732		9,488		9,452
Deferred OPEB costs		10,519		—		—
Other		24,674		17,120		11,066

		139,333		111,663		105,382


Total Regulatory Liabilities	$	143,255	$	121,055	$	117,608


Net Regulatory Assets	$	66,640	$	68,138	$	123,785

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NOTE 3 - NEW ACCOUNTING STANDARDS AND OTHER FASB PROJECTS

Reference is made to the captions “Standards Under Assessment” and “Standards Implemented” of Note 3 – “New Accounting Standards and Other FASB Projects” to the Financial Statements of the Corporations’ 10-K Annual Report.

New accounting standards are summarized below, and explanations of the underlying information for all standards (except those not currently applicable to CH Energy Group and its subsidiaries) follow the chart.

Impact*

Status

Category

Reference

Title

Issued
Date

Effective
Date

Under Assessment

Credit Derivatives

FSP No. FAS 133-1and FIN 45-4

Disclosures About Credit Derivatives and Certain Guarantees: An Amendment of FASB Statement No. 133 and FASB Interpretation No. 45; and Clarification of the Effective Date of FASB Statement No. 161

Sep-08

Jan-09

Under Assessment

GAAP Hierarchy

SFAS 162

The Hierarchy of Generally Accepted Accounting Principles

May-08

TBD

Under Assessment

Share-Based Payments

FSP EITF 03-6-1

Determining Whether Instruments Granted in Share-Based Payment Transactions are Participating Securities

May-08

Jan-09

Under Assessment

Derivative Instruments

SFAS 161

Disclosures About Derivative Instruments and Hedging Activities

Mar-08

Jan-09

Under Assessment

Business Combinations

SFAS 141R

Business Combinations - Revised

Dec-07

Jan-09

Under Assessment

Noncontrolling Interests

SFAS 160

Noncontrolling Interest in Consolidated Financial Statements

Dec-07

Jan-09

Under Assessment

Intangible Assets

FSP 142-3

Determining the Useful Life of Intangible Assets

Nov-07

Jan-09

Implemented

Fair Value

SFAS 157

Fair Value Measurement

Sep-06

Jan-08

Implemented

Fair Value

FSP 157-1

Application of SFAS No. 133 and Other Accounting Pronouncements that Address Fair Value Measurements for Purposes of Lease Classification or Measurement Under SFAS No. 13

Feb-08

Jan-08

Implemented

Fair Value

FSP 157-2

Effective Date of SFAS No. 157

Feb-08

Jan-08

Implemented

Fair Value

FSP 157-3

Effective upon issuance

Oct-08

Implemented

Pension, Postretirement

SFAS 158

Employers’ Accounting for Defined Benefit Pension and Other Postretirement Plans - Measurement Date Change

Sep-06

Jan-08

Implemented

Fair Value

SFAS 159

Establishing the Fair Value Option for Financial Assets and Liabilities

Feb-07

Jan-08

Implemented

Derivative Instruments

FIN 39-1

Amendment of FIN No. 39, Offsetting of Amounts Related to Certain Contracts

Apr-07

Jan-08

Not Currently Applicable

Financial Guarantee Insurance Contracts

SFAS 163

Accounting for Financial Guarantee Insurance Contracts - an Interpretation of FASB Statement No. 60

May-08

Jan-09

Not Currently Applicable

Convertible Debt

FSP APB 14-1

Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion

May-08

Jan-09

Not Currently Applicable

Financial Assets

FSP 140-3

Accounting for Transfers of Financial Assets and Repurchase Financing Transactions

Feb-08

Jan-09

Not Currently Applicable

Collaborative Arrangements

EITF 07-1

Accounting for Collaborative Arrangements

Nov-07

Jan-09