FORM 10-Q/A

                                 AMENDMENT NO. 1

                                  UNITED STATES

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D. C. 20549
(Mark One)

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

For  the  quarterly  period  ended.................September  30,  2001
                                       OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934

For the transition period from............to....................
Commission file number....................................0-30512

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

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

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

Registrant's telephone number, including area code (845) 452-2000
                                                   --------------

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

      Indicate the number of shares outstanding of each of the issuer's classes
of common stock as of the latest practicable date.

      Common stock, par value $.10 per share; and the number of shares
outstanding of Registrant's common stock, as of September 30, 2001, was
16,362,087.

<PAGE>


                              CH ENERGY GROUP, INC.

               FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 30, 2001

                                      INDEX


      PART I - FINANCIAL INFORMATION                              PAGE

Item 1 -  Consolidated Financial Statements                         1

          Consolidated Statement of Income -
           Three Months Ended September 30, 2001 and 2000           1

          Consolidated Statement of Income -
           Nine Months Ended September 30, 2001 and 2000            2

          Consolidated Statement of Comprehensive Income
           Nine Months Ended September 30, 2001 and 2000            3

          Consolidated Statement of Comprehensive Income
           Nine Months Ended September 30, 2001 and 2000            4

          Consolidated Balance Sheet - September 30, 2001
           and December 31, 2000                                    5

          Consolidated Statement of Cash Flows -
           Nine Months Ended September 30, 2001 and 2000            7

          Notes to Consolidated Financial Statements                8

Item 2 -  Management's Discussion and Analysis of
           Financial Condition and Results of
           Operations                                              18

Item 3 -  Quantitative and Qualitative Disclosure
           about Market Risk                                       26

      PART II - OTHER INFORMATION

Item 1 -  Legal Proceedings                                        26

Item 6 -  Exhibits and Reports on Form 8-K                         27

Signatures                                                         27
Exhibit Index


<PAGE>



                         PART I - FINANCIAL INFORMATION

                   Item I - Consolidated Financial Statements


                              CH ENERGY GROUP, INC.
                        CONSOLIDATED STATEMENT OF INCOME
                                   (UNAUDITED)
<TABLE>
<CAPTION>

                                                               For the 3 Months Ended September 30,
                                                                      2001                2000
                                                                    --------            --------
                                                                         (Thousands of Dollars)
 <S>                                                                <C>                 <C>
 Operating Revenues
   Electric..................................................       $119,039            $140,626
   Gas.......................................................         11,272              13,740
   Unregulated Affiliate.....................................         35,520              13,531
                                                                    --------            --------
       Total Operating Revenues..............................        165,831             167,897
                                                                    --------            --------

 Operating Expenses
   Operation:
     Fuel used in electric generation and
        purchased electricity...................................      76,202              63,431
     Purchased natural gas.....................................        6,139               9,121
     Purchased petroleum.......................................       12,823                (301)
     Other expenses of operation - regulated activities........       23,502              31,875
     Other expenses of operation - unreg. affiliate activities.       11,660               6,971
   Depreciation and amortization...............................        8,661              12,612
   Taxes, other than income tax................................       10,442              14,849
   Federal/State income tax....................................        5,565               8,604
                                                                    --------            --------
                                                                     154,994             147,162
                                                                    --------            --------

 Operating Income..............................................       10,837              20,735
                                                                    --------            --------

 Other Income and (Deductions)
   Allowance for equity funds used during construction.........          104                  -
   Federal/State income tax....................................          372                (149)
   Interest Income.............................................        3,479                 112
   Other - net.................................................          859               2,898
                                                                    --------            --------
                                                                       4,814               2,861
                                                                    --------            --------

 Income before Interest Charges................................       15,651              23,596
                                                                    --------            --------
 Interest Charges
   Interest on mortgage bonds..................................          669               2,570
   Interest on other long-term debt............................        2,162               3,591
   Other interest..............................................        2,556               2,334
   Allowance for borrowed funds used during construction.......          (82)               (202)
                                                                    --------            --------
                                                                       5,305               8,293

 Preferred Stock Dividends of Central Hudson...................          807                 807
                                                                    --------            --------

 Net Income....................................................        9,539              14,496
 Dividends Declared on Common Stock............................        8,835               8,963
                                                                    --------            --------

 Balance Retained in the Business..............................         $704              $5,533
                                                                    ========            ========

 Common Stock:
     Average Shares Outstanding (000s).........................       16,362              16,696

     Earnings Per Share (Basic and Diluted)....................        $0.58               $0.87

     Dividends Declared........................................       $0.540              $0.540

</TABLE>
                 See Notes to Consolidated Financial Statements.

                                        1


<PAGE>


                         PART I - FINANCIAL INFORMATION


                   Item I - Consolidated Financial Statements


                              CH ENERGY GROUP, INC.
                        CONSOLIDATED STATEMENT OF INCOME
                                   (UNAUDITED)
<TABLE>
<CAPTION>

                                                                                 For the 9 Months Ended September 30,
                                                                                    2001                         2000
                                                                                ------------                 ------------
                                                                                        (Thousands of Dollars)
<S>                                                                               <C>                          <C>
 Operating Revenues
   Electric...........................................................           $338,590                     $382,949
   Gas................................................................             90,203                       76,534
   Unregulated Affiliate..............................................            145,964                       47,288
                                                                                 --------                     --------
       Total Operating Revenues.......................................            574,757                      506,771
                                                                                 --------                     --------
 Operating Expenses
   Operation:
     Fuel used in electric generation and
        purchased electricity.........................................            198,340                      169,990
     Purchased natural gas............................................             58,929                       46,151
     Purchased petroleum..............................................             69,684                        5,907
     Other expenses of operation - regulated activities...............             84,636                      101,744
     Other expenses of operation - unreg. affiliate activities........             39,356                       18,484
   Depreciation and amortization......................................             27,568                       37,609
   Taxes, other than income tax.......................................             37,774                       46,003
   Federal/State income tax...........................................             17,959                       22,106
                                                                                 --------                     --------
                                                                                  534,246                      447,994
                                                                                 --------                     --------

 Operating Income.....................................................             40,511                       58,777
                                                                                 --------                     --------
 Other Income and (Deductions)
   Allowance for equity funds used during construction................                281                            -
   Federal/State income tax...........................................             (1,685)                        (323)
   Interest Income....................................................             13,040                          457
   Other - net........................................................              5,455                        8,159
                                                                                 --------                     --------
                                                                                   17,091                        8,293
                                                                                 --------                     --------

 Income before Interest Charges.......................................             57,602                       67,070
                                                                                 --------                     --------

 Interest Charges
   Interest on mortgage bonds.........................................              4,541                        8,772
   Interest on other long-term debt...................................              8,648                        9,268
   Other interest.....................................................             11,139                        6,698
   Allowance for borrowed funds used during construction..............               (222)                        (527)
                                                                                 --------                     --------
                                                                                   24,106                       24,211

 Preferred Stock Dividends of Central Hudson..........................              2,422                        2,422
                                                                                 --------                     --------

 Net Income...........................................................             31,074                       40,437
 Dividends Declared on Common Stock...................................             26,507                       27,109
                                                                                 --------                     --------

 Balance Retained in the Business.....................................             $4,567                      $13,328
                                                                                 ========                     ========
 Common Stock:
     Average Shares Outstanding (000s)................................             16,362                       16,793

     Earnings Per Share (Basic and Diluted)...........................              $1.90                        $2.41

     Dividends Declared...............................................              $1.62                        $1.62

</TABLE>

                 See Notes to Consolidated Financial Statements.

                                        2


<PAGE>


                              CH ENERGY GROUP, INC.
                 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
                                   (UNAUDITED)


<TABLE>
<CAPTION>

                                                                                               For the 3 Months
                                                                                             Ended September 30,
                                                                                             2001            2000
                                                                                          -----------     -----------
                                                                                            (Thousands of Dollars)


<S>                                                                                           <C>            <C>
Net Income................................................................                    $9,539         $14,496

Other comprehensive income, net of tax:
   FAS 133 transition adjustment - balance at July 1, 2001 of cumulative
    effect of unrealized gains (losses) at implementation date of
    January 1, 2001.......................................................                       795               -
       Less:  reclassification adjustment for gains (losses)
              realized in net income......................................                       398               -
       Plus:  change in fair value for transition adjustment amounts......                       795               -
                                                                                          -----------     -----------
              Balance of FAS 133 transition adjustment at Sept. 30, 2001                       1,192               -
   FAS 133 - Other deferred unrealized gains (losses).....................                         -               -
                                                                                          -----------     -----------

Other comprehensive income (loss).........................................                     1,192               -
                                                                                          -----------     -----------

Total Comprehensive Income................................................                   $10,731         $14,496
                                                                                          ===========     ===========
</TABLE>

                                       3
<PAGE>


                              CH ENERGY GROUP, INC.
                 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
                                   (UNAUDITED)


<TABLE>
<CAPTION>

                                                                                                     For the 9 Months
                                                                                                   Ended September 30,
                                                                                                   2001            2000
                                                                                                -----------     -----------
                                                                                                  (Thousands of Dollars)

<S>                                                                                                <C>             <C>
Net Income................................................................                         $31,074         $40,437

Other comprehensive income, net of tax:
   FAS 133 transition adjustment - cumulative effect of
    unrealized gains (losses) at implementation date of
    January 1, 2001.......................................................                          (1,896)              -
       Less:  reclassification adjustment for gains (losses)
                 realized in net income...................................                            (394)              -
       Plus:  change in fair value for transition adjustment amounts......                           2,694               -
                                                                                                -----------     -----------
              Balance of FAS 133 transition adjustment at Sept. 30, 2001                             1,192               -
   FAS 133 - Other deferred unrealized gains (losses).....................                               -               -
                                                                                                -----------     -----------
Other comprehensive income (loss).........................................                           1,192               -
                                                                                                -----------     -----------
Comprehensive Income......................................................                         $32,266         $40,437
                                                                                                ===========     ===========

</TABLE>

                                       4



<PAGE>


                              CH ENERGY GROUP, INC.
                           CONSOLIDATED BALANCE SHEET


<TABLE>
<CAPTION>
                                                                      September 30,           December 31,
                                                                           2001                   2000
                                         ASSETS                        (Unaudited)             (Audited)
                                                                      ---------------        -------------
                                                                             (Thousands of Dollars)

<S>                                                                        <C>                 <C>
Utility Plant
       Electric..............................................              $574,092            $1,277,617
       Gas...................................................               178,582               172,242
       Common................................................               104,192                99,353
       Nuclear fuel..........................................                46,701                46,688
                                                                           --------            ----------
                                                                            903,567             1,595,900

       Less:  Accumulated depreciation.......................               375,869               668,168
              Nuclear fuel amortization......................                42,782                40,762
                                                                           --------            ----------
                                                                            484,916               886,970

       Construction work in progress.........................                47,914                43,882
                                                                           --------            ----------
               Net Utility Plant.............................               532,830               930,852
                                                                           --------            ----------
Other Property and Plant.....................................                45,018                42,979
                                                                           --------            ----------
Prefunded Pension Costs and Other Investments
        Prefunded Pension Costs..............................                75,194                63,390
        Other Investments....................................                20,444                23,201
                                                                           --------            ----------
Total Prefunded Pension Costs and Other Investments..........                95,638                86,591
                                                                           --------            ----------
Intangible Assets............................................                66,346                68,458
                                                                           --------            ----------
Current Assets
       Cash and cash equivalents.............................               305,426                28,318
       Accounts receivable from customers-net of
             allowance for doubtful accounts.................                64,393               109,403
       Accrued unbilled utility revenues.....................                 9,893                19,751
       Other receivables.....................................                 4,253                 5,352
       Fuel, materials and supplies, at average cost.........                18,056                30,629
       Special deposits and prepayments......................                22,688                21,608
                                                                           --------            ----------
                Total Current Assets.........................               424,709               215,061
                                                                           --------            ----------
Deferred Charges and Other Assets
       Regulatory assets ....................................                35,201               155,230
       Unamortized debt expense..............................                 3,593                 4,869
       Fair value of derivative instruments..................                57,096                     -
       Other Assets..........................................                22,227                26,933
                                                                           --------            ----------
                Total Deferred Charges and Other Assets......               118,117               187,032
                                                                           --------            ----------

Accumulated Deferred Income Tax (Net)........................                16,788                     -
                                                                           --------            ----------

                          Total Assets.......................            $1,299,446            $1,530,973
                                                                         ==========            ==========
</TABLE>


                 See Notes to Consolidated Financial Statements.

                                        5

<PAGE>


                              CH ENERGY GROUP, INC.
                           CONSOLIDATED BALANCE SHEET

<TABLE>
<CAPTION>
                                                                       September 30,         December 31,
                                                                           2001                  2000
                           CAPITALIZATION AND LIABILITIES               (Unaudited)            (Audited)
                                                                     ------------------     ----------------
                                                                             (Thousands of Dollars)
<S>                                                                  <C>                  <C>
Capitalization
        Common Stock Equity:
             Common stock, 30,000,000 shares authorized;
               shares issued ($.10 par value):
                 9/30/2001  = 16,862,087
                 12/31/2000 = 16,862,087.......................       $    1,686           $    1,686
        Paid-in capital........................................          351,230              351,230
        Retained earnings......................................          152,391              147,824
        Reacquired capital stock (500,000 shares)..............          (18,766)             (18,766)
        Other Comprehensive Income -
            Unrealized Derivative Gains (Losses)...............            1,192                    -
        Capital stock expense..................................           (1,176)              (1,232)
                                                                       ---------            ---------

                Total Common Stock Equity......................          486,557              480,742
                                                                       ---------            ---------
        Cumulative Preferred Stock
             Not subject to mandatory redemption...............           21,030               21,030
             Subject to mandatory redemption...................           35,000               35,000
                                                                       ---------            ---------
                Total Cumulative Preferred Stock...............           56,030               56,030
                                                                       ---------            ---------

        Long-term Debt.........................................          236,123              320,369
                                                                       ---------            ---------
                Total Capitalization...........................          778,710              857,141
                                                                       ---------            ---------
Current Liabilities
        Current maturities of long-term debt...................                -               62,610
        Notes payable..........................................            8,250              165,000
        Accounts payable.......................................           47,813               63,845
        Accrued interest.......................................            3,142                7,256
        Dividends payable......................................            9,643                9,643
        Accrued vacation.......................................            3,900                4,472
        Customer deposits......................................            4,912                4,637
        Accrued taxes payable..................................          110,808                3,087
        Other..................................................            4,865                8,005
                                                                       ---------            ---------
                Total Current Liabilities......................          193,333              328,555
                                                                       ---------            ---------

Deferred Credits and Other Liabilities
        Regulatory liabilities.................................          271,192              118,574
        Operating reserves.....................................            5,744                4,755
        Other..................................................           50,467               27,120
                                                                       ---------            ---------
                Total Deferred Credits and Other Liabilities...          327,403              150,449
                                                                       ---------            ---------

Accumulated Deferred Income Tax ...............................                -              194,828
                                                                       ---------            ---------


                     Total Capitalization and Liabilities......       $1,299,446           $1,530,973
                                                                       ---------            ---------
</TABLE>


                 See Notes to Consolidated Financial Statements.

                                        6

<PAGE>


                              CH ENERGY GROUP, INC.
                      CONSOLIDATED STATEMENT OF CASH FLOWS
                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                                                              For the 9 Months Ended
                                                                                                  September 30,
                                                                                               2001            2000
                                                                                            ------------    -----------
                                                                                              (Thousands of Dollars)
<S>                                                                                             <C>            <C>
Operating Activities:

    Net Income.................................................................                 $31,074        $40,437

       Adjustments to reconcile net income to net cash provided by operating
          activities:
             Depreciation, amortization & nuclear fuel amortization............                  30,534         40,390
             Deferred income taxes, net........................................                   2,821          4,457
             Nine Mile 2 Plant deferred finance charges, net...................                   1,311         (3,572)
             Provision for uncollectibles......................................                   1,875          1,725
             Net accrued/deferred pension costs................................                 (11,498)       (10,302)
             Net deferred gas costs/gas refunds................................                     237         (1,434)
             Other, net........................................................                  11,879         (5,598)

          Changes in operating assets and liabilities, net:
             Accounts receivable and unbilled revenues.........................                  54,092          5,432
             Fuel, materials and supplies......................................                  (1,748)         1,367
             Special deposits and prepayments..................................                  (1,080)        (7,041)
             Accounts payable..................................................                 (16,032)        (4,231)
             Accrued taxes and interest........................................                  76,141          4,606
             Deferred taxes related to sale of plants and NMP2 write-off.......                (233,876)             -
             Other, net........................................................                  (3,437)        (1,361)
                                                                                            ------------    -----------

       Net Cash (Used in) Provided by Operating Activities....................                  (57,707)        64,875
                                                                                            ------------    -----------

Investing Activities:

       Proceeds from sale of fossil generation plants.........................                  713,202              -
       Additions to plant.....................................................                  (40,905)       (41,198)
       Investment activity of unregulated affiliate...........................                   (6,343)        (8,925)
       Payments to Nine Mile 2 Plant decommissioning trust fund...............                     (651)          (651)
       Other, net.............................................................                    3,414           (551)
                                                                                            ------------    -----------

       Net Cash Provided by (Used in) Investing Activities....................                  668,717        (51,325)
                                                                                            ------------    -----------

Financing Activities:

       Proceeds from issuance of long-term debt...............................                        -         47,500
       Repayments of short-term debt..........................................                 (156,750)         5,000
       Retirement and redemption of long-term debt............................                 (147,380)       (35,100)
       Dividends paid on common stock.........................................                  (26,431)       (27,251)
       Reacquired capital stock...............................................                        -         (8,470)
       Issuance and redemption costs of long-term debt........................                   (3,341)          (313)
                                                                                            ------------    -----------

       Net Cash Used in Financing Activities..................................                 (333,902)       (18,634)
                                                                                            ------------    -----------

Net Change in Cash and Cash Equivalents.....................................                    277,108         (5,084)

Cash and Cash Equivalents - Beginning of Year...............................                     28,318         20,385
                                                                                            ------------    -----------

Cash and Cash Equivalents - End of Period...................................                   $305,426        $15,301
                                                                                            ============    ===========


Supplemental Disclosure of Cash Flow Information

       Interest paid..........................................................                  $18,963        $16,907

       Federal & State income tax paid........................................                 $141,405        $18,800

</TABLE>


                 See Notes to Consolidated Financial Statements

                                        7

<PAGE>


      ITEM 1 OF THE 10-Q IS BEING SUBMITTED DUE TO A TYPOGRAPHICAL ERROR IN NOTE
2 IN THE SUBCAPTION "OTHER MATTERS RELATED TO THE RATE ORDER AND THE NINE MILE 2
ORDER" THAT OCCURRED IN THE ELECTRONIC FILING OF NOVEMBER 9, 2001.

                              CH ENERGY GROUP, INC.
                   Notes to Consolidated Financial Statements

NOTE 1 - GENERAL

      The accompanying Consolidated Financial Statements of CH Energy Group,
Inc. (herein the Corporation) are unaudited but, in the opinion of Management,
reflect adjustments (which include normal recurring adjustments) necessary for a
fair statement of the results of operations 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
Corporation's Annual Report, on Form 10-K, for the year ended December 31, 2000
(Corporation's 10-K Report).

      Due to the seasonal nature of the Corporation's operations, financial
results for interim periods are not necessarily indicative of trends for a
twelve-month period.

NOTE 2 - REGULATORY MATTERS

      Reference is made to Note 2 - "Regulatory Matters" to the Consolidated
Financial Statements of the Corporation's 10-K Report under the caption "Impact
of Settlement Agreement on Accounting Policies," (hereinafter the Settlement
Agreement).

      At December 31, 2000, the net regulatory assets associated with Central
Hudson's fossil-fueled generating assets, including asbestos litigation costs
and Clean Air Act credits, of Central Hudson Gas & Electric Corporation (Central
Hudson), a wholly-owned affiliate of the Corporation, totaled $1.9 million. On
January 30, 2001, Central Hudson sold its interests in the Danskammer and
Roseton Generating Plants. The proceeds in excess of the net book value were
offset against the related fossil-fueled net regulatory assets. The balance in
these accounts at September 30, 2001 is zero. (See Note 2 - "Regulatory Matters"
to the Consolidated Financial Statements of the Corporation's 10-K Report under
the caption "Sale of Generating Plants").

                                       8

<PAGE>


Competitive Opportunities Proceeding Settlement Agreement

      As reported under the caption "Competitive Opportunities Proceeding
Settlement Agreement" in Note 2 to the Consolidated Financial Statements
included in the Corporation's 10-K Report, Central Hudson received approval from
its shareholders and regulators to form a holding company. The holding company
restructuring occurred on December 15, 1999. The competitive business
subsidiaries of the Corporation are described in Item 1 of the Corporation's
10-K Report under the caption "Affiliates of the Corporation."

PSC Proceedings

      NINE MILE 2 PLANT: Reference is made to Note 3 - Nine Mile 2 Plant under
the caption "General" to the Consolidated Financial Statements included in the
Corporation's 10-K Report for a discussion of the proposed sale of the interests
of certain cotenant owners, including Central Hudson, in the Nine Mile Point
Unit No. 2 Nuclear Plant (Nine Mile 2 Plant).

      On October 24, 2001, the Public Service Commission of the State of New
York (PSC) authorized the sale of these interests, which authorization is set
forth in an Order of the PSC issued and effective October 26, 2001 (Nine Mile 2
Order). The sale of Central Hudson's interest in the Nine Mile 2 Plant took
place on November 7, 2001, as described in Item 2 below under the caption "Other
Matters - Nine Mile 2 Plant Sale."

      RATE CASE PROCEEDING: Reference is made to Note 2 of the Corporation's
10-K Report under the caption "Regulatory Matters" under the caption "Rate
Proceedings - Electric and Gas" and to Note 2 to the Notes to Consolidated
Financial Statements, under the caption "Rate Proceedings - Electric and Gas"
contained in the Corporation's Quarterly Report, on Form 10-Q, for the quarterly
period ended June 30, 2001, for information with respect to Central Hudson's
major rate and restructuring proposal filed with the PSC.

      Effective October 25, 2001, the PSC issued its Order Establishing Rates in
that Proceeding (Rate Order), the significant terms and conditions of which are:

     Term: Three years,  beginning July 1, 2001, with a Central Hudson option to
extend the Rate Order for two (2) years.

     Rates:  Electric delivery rates will be reduced by 1.2% and then frozen for
the remainder of the term of the Rate Order.  Natural gas delivery rates will be
frozen for the term of the Rate Order.

                                       9
<PAGE>

      Purchased Electricity and Natural Gas: Central Hudson will continue to
purchase electric energy and natural gas for its full service customers and will
recover 100% of these costs from customers through energy adjustment mechanisms.

     Rate Structure:  Customer charges will be increased and volumetric delivery
charges will be reduced.

      Customer bills will be formatted to show the market price of electricity
in order to encourage competition and enhance customer migration to third party
energy suppliers.

      Customers will receive refunds of $25 million annually for each of the
first three (3) years the Rate Order is effective.

      Return on Equity: Central Hudson will be allowed a base return on equity
(ROE) of 10.3% on the equity portion of its rate base (approximately $250
million). The common equity ratio will be capped at 47% in the first year of the
settlement period and decline 1% per year in each of the next two (2) years.
Earnings above the 10.3% base ROE will be retained by Central Hudson up to
11.3%, with a 50-50 sharing between customers and Central Hudson between 11.3%
and 14%. Earnings above 14.0% will be reserved for customer benefits.

      Customer Benefits: Excess proceeds from power plant sales and deferred
regulatory accounts approximating $164 million (net of tax) are available for
customer benefit. The Rate Order provides for the following customer benefit
uses, unused amounts to remain available for future disposition:

      1)    Customer refunds              $45 million (after tax)
      2)    Rate Base reduction                 $42 million (after tax)
      3)    Reliability Program                 $13 million (after tax)
      4)    Offset of manufactured gas
            plant site remediation costs  $12.6 million (after tax)

      The Rate Order also establishes customer service "incentives," enhanced
low income and customer education programs.

      OTHER MATTERS RELATED TO THE RATE ORDER AND THE NINE MILE 2 ORDER: Also
included in these Orders were approval for Central Hudson to recognize $19.8
million of tax benefits related to its 2001 power plant sales, offset by $11.4
million of after tax contributions by Central Hudson to the customer benefit
fund, or a net benefit to shareholders of $8.4 million. Central Hudson will
additionally recognize net income for shareholders under a

                                       10
<PAGE>


prior regulatory  settlement,  as follows: $3.2 million in 2001, $2.9 million in
2002,  $5.9  million in 2003 and $5.9  million in 2004.  These tax  benefits and
prior  settlement-related  amounts are excluded from the ROE sharing calculation
described above.

NOTE 3 - SEGMENTS AND RELATED INFORMATION

      Reference is made to Note 11 - "Segments and Related Information" to the
Consolidated Financial Statements included in the Corporation's 10-K Report.

      The Corporation's primary reportable operating segments are the regulated
electric and gas operations of Central Hudson and the unregulated competitive
business subsidiaries of Central Hudson Energy Services, Inc. (CH Services). The
segments currently operate in the Northeast and Mid-Atlantic regions of the
United States.

      Certain additional information regarding these segments is set forth in
the following table. General corporate expenses, property common to both
segments and depreciation of the common property have been allocated to the
segments in accordance with the practice established for regulatory purposes.














                                       11
<PAGE>


CH Energy Group, Inc. Segment Disclosure - FAS 131
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------
                                         Quarter Ended September 30, 2001             Nine Months Ended September 30, 2001
---------------------------------------------------------------------------------------------------------------------------
                                        Regulated          Unreg.      Total          Regulated          Unreg.       Total
---------------------------------------------------------------------------------------------------------------------------
                                   Electric      Gas                            Electric      Gas
---------------------------------------------------------------------------------------------------------------------------
<S>                                <C>        <C>         <C>        <C>        <C>          <C>        <C>        <C>
Revenue from external customers    $119,020   $11,182     $35,520    $165,722   $338,534     $89,868    $145,964   $574,366
---------------------------------------------------------------------------------------------------------------------------
Intersegment revenues                    19        90        -            109         56         335       -            391
---------------------------------------------------------------------------------------------------------------------------
              Total Revenues       $119,039   $11,272     $35,520    $165,831   $338,590     $90,203    $145,964   $574,757
---------------------------------------------------------------------------------------------------------------------------
Earnings Per Share                 $   0.56   $  0.01     $  0.01    $   0.58   $   0.85     $  0.57    $   0.48   $   1.90
---------------------------------------------------------------------------------------------------------------------------

<CAPTION>
---------------------------------------------------------------------------------------------------------------------------
                                         Quarter Ended September 30, 2000             Nine Months Ended September 30, 2000
---------------------------------------------------------------------------------------------------------------------------
                                        Regulated           Unreg.      Total         Regulated          Unreg.      Total
---------------------------------------------------------------------------------------------------------------------------
                                   Electric      Gas                            Electric      Gas
---------------------------------------------------------------------------------------------------------------------------
<S>                                <C>        <C>         <C>          <C>      <C>          <C>        <C>        <C>
Revenues from external customers   $140,612   $13,294     $13,531      $167,437 $382,884     $75,160    $47,288    $505,332
---------------------------------------------------------------------------------------------------------------------------
Intersegment revenues                    14       446        -              460       65       1,374       -          1,439
---------------------------------------------------------------------------------------------------------------------------
              Total Revenues       $140,626   $13,740     $13,531      $167,897 $382,949     $76,534    $47,288    $506,771
---------------------------------------------------------------------------------------------------------------------------
Earnings Per Share                 $   0.85   $ (0.07)    $  0.09      $   0.87 $   1.99     $  0.38    $  0.04    $   2.41
---------------------------------------------------------------------------------------------------------------------------

</TABLE>
                                       12



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NOTE 4 - NEW ACCOUNTING STANDARDS

Derivative Instruments and Hedging Activities - SFAS 133

      Reference is made to Item 7A - "Quantitative and Qualitative Disclosure
About Market Risk" of the Corporation's 10-K Report and also, Note 1 - "Summary
of Significant Accounting Policies" to the Consolidated Financial Statements
under the caption "New Accounting Standards, Other FASB Projects and NRC Policy
Statement." These sections of the Corporation's 10-K provide background
information regarding its risk management policy and practices for minimizing
price risk associated with commodity purchases and the development of SFAS 133,
"Accounting for Derivative Instruments and Hedging Activities." SFAS 133
requires that all derivative instruments, with certain limited exceptions,
including instruments that meet the "normal purchases and sales" exception, as
defined, be recognized at fair value on the Corporation's balance sheet,
effective January 1, 2001, with offsetting gains or losses recognized in
earnings. The standard also permits the deferral of these gains or losses if
stringent hedge accounting provisions are met.

      The Corporation implemented SFAS 133 on January 1, 2001 and recognized a
net of tax transition adjustment of $(1.9) million to Other Comprehensive Income
(OCI) for the initial adoption of SFAS 133. This amount represents the
cumulative effect of a change in accounting principle for unrealized losses
related to derivatives redesignated as cash flow hedges. Actual gains and losses
related to these derivatives will be realized during the period January 2001
through December 2001.

      Central Hudson uses derivative instruments to hedge the exposure to the
variability in cash flows associated with forecasted sales of natural gas and
forecasted sales and purchases of electricity. These derivatives are not
formally designated as hedges under the provisions of SFAS 133 because the
related gains and losses are included as part of Central Hudson's commodity cost
and/or price reconciled in its natural gas and electric energy service charge
clauses. The earnings offset to these derivatives are, therefore, deferred for
pass-back to or recovery from customers under these regulatory adjustment
mechanisms. The total fair value of Central Hudson derivatives at September 30,
2001 is $55.1 million due largely to the conversion, effective July 1, 2001, of
a multi-year transition purchase power agreement (TPA) (see Item 2 of the
Corporation's 10-K Report under the caption "Load and Capacity") from a physical
to a financial arrangement. Under the terms of the modified agreement, Central
Hudson will purchase electric energy volumes covered by the TPA at market and
financially net settle with the TPA counter-party for differences between market
prices

                                       13
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and the fixed prices stipulated in the TPA. The total net gain (realized and
unrealized) year-to-date associated with settled and open derivatives is $71.0
million, comprised largely of unrealized gains associated with the TPA
derivative, through October 2004.

      CH Services uses derivative instruments to hedge variability in cash flows
associated with forecasted sales and purchases of electricity and also, the fair
value of certain firm commitments relating to heating oil purchases. These
hedges have been highly effective and no gains or losses from ineffectiveness
were recorded during the three months ended September 30, 2001 or year-to-date.
The assessment of hedge effectiveness for fair value hedges excludes the change
in the fair value of the premium paid for these derivative instruments. These
premiums, which are not material, are expensed based on the change in their fair
value. The earnings offset to the change in fair value of the cash flow hedges
is deferred to OCI and is reclassified to earnings when earnings are affected by
the hedged transactions (forecasted purchase or sale). As amounts are
reclassified from OCI, the impact on earnings is offset by the recognition of
the hedged transactions. Gains and losses restored to earnings are recorded as
part of the cost or price of the related commodity. The net of tax balance in
OCI of $1,192,000 at September 30, 2001 is expected to be restored to earnings
by the end of 2001. Year-to-date, CH Services has recognized a total net gain
(realized and unrealized) of $3.5 million related to derivatives. The total fair
value of CH Service's derivatives at September 30, 2001 is $2.0 million.

Plant Decommissioning

      Reference is made to the caption "New Accounting Standards, Other FASB
Projects and NRC Policy Statement" of Note 1 - "Summary of Significant
Accounting Policies," to the Consolidated Financial Statements of the
Corporation's 10-K Report. On July 5, 2001, the Financial Accounting Standards
Board (FASB) issued Statement No. 143, Accounting for Asset Retirement
Obligations. Initially started in 1994 as a project to account for the costs of
nuclear decommissioning, the FASB expanded the scope to include similar closure
or removal-type costs in other industries that are incurred at any time during
the life of an asset. That standard requires entities to record the fair value
of a liability for an asset retirement obligation in the period in which it is
incurred. When the liability is initially recorded, the entity capitalizes a
cost by increasing the carrying amount of the related long-lived asset. Over
time, the liability is accreted to its present value each period, and the
capitalized cost is depreciated over the useful life of the

                                       14
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related asset. Upon settlement of the liability, an entity either settles the
obligation for its recorded amount or incurs a gain or loss upon settlement. The
standard is effective for fiscal years beginning after June 15, 2002, with
earlier application encouraged. The Corporation is reviewing this new accounting
standard, and cannot make any prediction at this time as to its ultimate
effect(s) on the financial condition, results of operations and cash flows of
the Corporation and/or its affiliates at this time.

Property, Plant and Equipment

      In April, FASB agreed to issue an Exposure Draft that would amend certain
APB Opinions and FASB Statements to incorporate changes that would result from
issuance of a proposed AICPA Statement of Position (SOP), Accounting for Certain
Costs and Activities Related to Property, Plant, and Equipment. The FASB also
agreed that the Exposure Draft would propose to amend APB Opinion No. 28,
Interim Financial Reporting, so the provisions of the proposed SOP that would
require certain costs to be charged to expense as incurred would apply also to
interim periods. In June, FASB approved for issuance FASB Exposure Draft
Accounting in Interim and Annual Financial Statements for Certain Costs and
Activities Related to Property, Plant, and Equipment, which was issued
contemporaneously in July 2001 with the issuance of the proposed SOP by the
Accounting Standards Executive Committee (AcSEC).

      AcSEC drafted the proposed SOP to address diversity in accounting for
expenditures related to property, plant and equipment (PP&E), including
improvements, replacements, betterments, additions, repairs and maintenance. The
proposed SOP addresses accounting and disclosure issues related to determining
which PP&E costs should be capitalized versus those that should be charged to
expense as incurred. The proposed SOP also addresses capitalization of indirect
and overhead costs and component accounting for PP&E.

      If adopted as a final Statement, the FASB proposal would be effective for
annual and interim financial statements for fiscal years beginning after June
15, 2002, with earlier adoption encouraged. The comment period has been extended
to November 15, 2001.

      The Corporation can make no prediction at this time as to the ultimate
form of the proposed accounting standard, assuming it is adopted, nor can it
make any prediction as to its ultimate effect(s) on the financial condition,
results of operations and cash flows of the Corporation and/or its affiliates.

                                       15
<PAGE>


Business Combinations and Intangible Assets - Accounting for Goodwill

      On July 20, 2001, FASB issued two statements related to its Business
Combinations issues - Statement No. 141, Business Combinations (SFAS 141), and
Statement No. 142, Goodwill and Other Intangible Assets (SFAS 142).

      Statement 141 requires that all business combinations be accounted for
under a single method - the purchase method. Use of the pooling-of-interests
method is no longer permitted. Statement 141 requires that the purchase method
be used for business combinations initiated after June 30, 2001. This statement
will be applied as required.

      Statement 142 requires that goodwill no longer be amortized to earnings,
but instead be periodically reviewed for impairment. The amortization of
goodwill ceases upon adoption of Statement 142, which for the Corporation, will
be January 1, 2002. The Corporation presently amortizes goodwill related to
acquisitions made by CH Services. It is expected that the change in accounting
will favorably impact the Corporation's results of operations when implemented;
however, until this new accounting standard has been thoroughly reviewed by the
Corporation, it cannot make any prediction as to its ultimate effect(s) on the
financial condition, results of operations and cash flows of the Corporation
and/or its affiliates.

Long-Lived Assets

      In August 2001, the FASB issued Statement No. 144, Accounting for the
Impairment of Disposal of Long-Lived Assets (SFAS 144).

      Statement 144 requires that long-lived assets be measured at the lower of
carrying amount or fair value less cost to sell, whether reported in continuing
operations or in discontinued operations. Impairment occurs when the carrying
amount of a long-lived asset exceeds its fair value. An impairment loss will be
recognized and will represent the amount by which the carrying amount of the
long-lived asset exceeds its fair value. The standard is effective for fiscal
years beginning after December 15, 2001, to be applied prospectively.

      It is expected that the change in accounting will have no impact on the
Corporation's results of operations when implemented; however, until this new
accounting standard has been thoroughly reviewed by the Corporation, it cannot
make any prediction as to its ultimate effect(s) on the financial

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<PAGE>


condition,  results of operations and cash flows of the  Corporation  and/or its
affiliates.

NOTE 5 - STOCK-BASED COMPENSATION INCENTIVE PLANS

      Reference is made to Note 9 - "Stock-Based Compensation Incentive Plans"
to the Consolidated Financial Statements of the Corporation's 10-K Report. The
Corporation has a Long-Term Performance-Based Incentive Plan (Plan) for
executive officers and other key employees of the Corporation and its
affiliates, effective January 1, 2000. The aggregate number of shares of Common
Stock of the Corporation available for the grant of awards is 500,000.

      At the Corporation's annual meeting held April 24, 2001, the shareholders
approved an amendment to the Plan to revise the definition of Plan Participants
to include, effective January 1, 2001, Non-Employee Directors. The amendment
provides that Non-qualified Stock Options (Options) for a term of ten (10) years
be granted automatically to Non-Employee Directors of the Corporation. Each
Non-Employee Director was initially granted 3,000 Options, effective January 1,
2001; and 1,000 Options will be granted to each Director each January 1
thereafter. The amendment also stipulates that the exercise price is the Fair
Market Value of the Corporation's underlying Common Stock on the date of the
grant, that the Options are immediately exercisable, and that no other Awards
under the Plan will be granted to Non-Employee Directors.

      Also, an additional 35,900 Options were granted to executive officers and
other key employees of the Corporation and its affiliates by the Compensation
and Succession Committee of the Corporation's Board of Directors, effective as
of January 1, 2001. The Options are exercisable over a period of ten years, with
40% vesting after two years and 20% each year thereafter for the following three
years. The exercise price of all the Options granted, effective January 1, 2001,
is $44.06 per share and is based on the average market price (as traded on the
New York Stock Exchange on January 2, 2001). The Committee also granted a total
of 7,230 Performance Shares to these officers/key employees, effective as of
January 1, 2001, on the basis of achieving superior total shareholder return
over a three-year period ending December 31, 2003, as measured against an
industry index.

      SFAS No. 123 requires a company to disclose pro forma net income and
earnings per share as if the resulting stock-based compensation amounts were
recorded in the Consolidated Statement of Earnings. The effect of these Plan
Awards on net income, as well as basic diluted earnings per share of the
Corporation, was

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not material for the quarter and the nine months ended September 30, 2001.

      A summary of the status of Options awarded to executive officers and other
key employees and Non-Employee Directors of the Corporation and its affiliates
under the Plan as of September 30, 2001 is as follows:

                                          Weighted
                                           Average
                                          Exercise          Remaining
                              Shares        Price        Contractual Life
                              -------------------------------------------
Outstanding at 1/1/01         30,300      $31.94            8 1/4 years
            Granted           59,900       44.06            9 1/4 years
            Exercised             --          --
            Forfeited             --          --
Outstanding at 9/30/01        90,200      $39.98

NOTE 6 - COMMITMENTS AND CONTINGENCIES

      The Corporation faces a number of contingencies which arise during the
normal course of business and which have been discussed in Note 10 -
"Commitments and Contingencies," to the Consolidated Financial Statements
included in the Corporation's 10-K Report. Except for that which is disclosed in
Part II of this Quarterly Report, on Form 10-Q, for the quarterly period ended
September 30, 2001, and all documents previously filed with the Securities and
Exchange Commission (SEC) in 2001, there have been no material changes in the
subject matters discussed in Note 10.

                                   SIGNATURES
                                   ----------

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

                                            CH ENERGY GROUP, INC.
                                                (Registrant)


                                    By:      /s/ Donna S. Doyle
                                        ----------------------------
                                                Donna S. Doyle
                                          Vice President - Accounting
                                                and Controller


Dated: November 15, 2001

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