<PAGE>
                            FORM 10-Q

                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, 1997
                                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...................................1-3268

             CENTRAL HUDSON GAS & ELECTRIC CORPORATION        
        (Exact name of registrant as specified in its charter)

           NEW YORK                              14-0555980  
(State or other jurisdiction of              (I.R.S. Employer
incorporation or organization)              Identification No.)

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

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

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

Indicate the number of shares outstanding of each of the issuer's
classes of common stock as of the latest practicable date. 
Common stock, par value $5.00 per share; 17,369,787 shares
outstanding as of September 30, 1997.<PAGE>
            CENTRAL HUDSON GAS & ELECTRIC CORPORATION

        FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 30, 1997

                              INDEX





       PART I - FINANCIAL INFORMATION                     PAGE

Item 1 - Consolidated Financial Statements                  

         Consolidated Statement of Income -               1-2
          Three Months Ended September 30, 1997 and 1996         
         Consolidated Statement of Income -               3-4
          Nine Months Ended September 30, 1997 and 1996

         Consolidated Balance Sheet - September 30, 1997  5-7
          and December 31, 1996                            

         Consolidated Statement of Cash Flows -           8-10
          Nine Months Ended September 30, 1997 and 1996    

         Notes to Consolidated Financial Statements       11-12

Item 2 - Management's Discussion and Analysis of          13-21
          Financial Condition and Results of 
          Operations                                      


        PART II - OTHER INFORMATION

Item 1 - Legal Proceedings                                22

Item 5 - Other Information                                22-24

Item 6 - Exhibits and Reports on Form 8-K                 25

Signatures                                                26
<PAGE>


                  PART I - FINANCIAL INFORMATION
ITEM 1 - CONSOLIDATED FINANCIAL STATEMENTS
            CENTRAL HUDSON GAS & ELECTRIC CORPORATION
                 CONSOLIDATED STATEMENT OF INCOME
                           (UNAUDITED)
                                        For the 3 Months Ended 
                                              September 30,
                                            1997         1996  
                                          (Thousands of Dollars)
Operating Revenues
 Electric.............................. $  105,575    $ 104,187
 Gas...................................     13,520       10,106
  Total - own territory................    119,095      114,293
 Electric sales to other utilities.....      4,402        3,310
 Gas sales to other utilities..........         10           81
          Total Operating Revenues.....    123,507      117,684
Operating Expenses
 Operation:
  Fuel used in electric generation.....     19,569       13,423
  Purchased electricity................     12,514       15,306
  Purchased natural gas................      8,012        5,128
  Other expenses of operation..........     23,997       24,893
 Maintenance...........................      6,821        6,173 
 Depreciation and amortization.........     10,904       10,709 
 Taxes, other than income tax..........     16,328       16,185 
 Federal income tax....................      7,451        7,867
          Total Operating Expenses.....    105,596       99,684

Operating Income.......................     17,911       18,000

Other Income
 Allowance for equity funds 
  used during construction.............        114          186
 Federal income tax....................        199           51
 Other - net...........................      1,706        2,023
          Total Other Income ..........      2,019        2,260 

Income Before Interest Charges.........     19,930       20,260 


                                1
<PAGE>
            CENTRAL HUDSON GAS & ELECTRIC CORPORATION
                 CONSOLIDATED STATEMENT OF INCOME
                           (UNAUDITED)
                                        For the 3 Months Ended 
                                              September 30,
                                           1997         1996  
                                        (Thousands, Except for
                                           Per Share Amounts)
    
Interest Charges
 Interest on mortgage bonds............       3,559       3,559
 Interest on other long-term debt......       2,203       2,097
 Interest on short-term debt...........        -             47
 Other interest........................         644         816
 Allowance for borrowed funds 
  used during construction.............         (71)       (150)
 Amortization of expense on debt.......         227         226

          Total Interest Charges.......       6,562       6,595

Net Income.............................      13,368      13,665
 
Dividends Declared on Cumulative
 Preferred Stock.......................         808         808
Income Available for Common Stock......      12,560      12,857
Dividends Declared on 
 Common Stock..........................       9,289       9,304

Balance Retained in the Business.......  $    3,271   $   3,553



Common Stock:
 Average Shares Outstanding (000s).....      17,408      17,555

 Earnings Per Share....................       $ .72       $ .73

 Dividends Declared....................       $.535       $ .53



         See Notes to Consolidated Financial Statements.
                                2
<PAGE>

            CENTRAL HUDSON GAS & ELECTRIC CORPORATION
                 CONSOLIDATED STATEMENT OF INCOME
                           (UNAUDITED)
                                         For the 9 Months Ended 
                                              September 30,
                                           1997          1996  
                                          (Thousands of Dollars)
Operating Revenues
 Electric.............................. $301,347      $307,369
 Gas...................................   80,265        68,812
  Total - own territory................  381,612       376,181
 Electric sales to other utilities.....   12,267         9,870
 Gas sales to other utilities..........      108         2,475
          Total Operating Revenues.....  393,987       388,526
Operating Expenses
 Operation:
  Fuel used in electric generation....    47,776        46,284
  Purchased electricity...............    39,981        40,071
  Purchased natural gas...............    46,407        35,503
  Other expenses of operation.........    73,630        75,004
 Maintenance..........................    19,698        21,256
 Depreciation and amortization........    32,712        32,126
 Taxes, other than income tax.........    49,767        50,007
 Federal income tax...................    25,462        26,817
          Total Operating Expenses....   335,433       327,068
Operating Income......................    58,554        61,458
Other Income
 Allowance for equity funds 
  used during construction.............      297           493
 Federal income tax....................      558           995
 Other - net...........................    5,586         4,144
          Total Other Income...........    6,441         5,632

Income Before Interest Charges.........   64,995        67,090

Interest Charges
 Interest on mortgage bonds............   10,678        11,553
 Interest on other long-term debt......    6,584         6,341
 Interest on short-term debt...........       94           189
 Other interest........................    1,829         1,823

                                3
<PAGE>
            CENTRAL HUDSON GAS & ELECTRIC CORPORATION
                 CONSOLIDATED STATEMENT OF INCOME
                           (UNAUDITED)
                                        For the 9 Months Ended 
                                             September 30,
                                           1997         1996  
                                         (Thousands, Except for 
                                            Per Share Amounts)
 
 Allowance for borrowed funds 
  used during construction.............       (185)       (397)
 Amortization of expense on debt.......        679         713
          Total Interest Charges.......     19,679      20,222
Net Income............................      45,316      46,868

Premium on Preferred Stock Redemption.         -           378
Dividends Declared on Cumulative
 Preferred Stock......................       2,422       2,422
Income Available for Common Stock.....      42,894      44,068
Dividends Declared on 
 Common Stock.........................      27,895      27,824

Balance Retained in the Business......   $  14,999    $ 16,244

Common Stock:
 Average Shares Outstanding (000s)....      17,472      17,547

 Earnings Per Share...................       $2.46       $2.51

 Dividends Declared...................       $1.60       $1.59









         See Notes to Consolidated Financial Statements.

                                4
<PAGE>
            CENTRAL HUDSON GAS & ELECTRIC CORPORATION
                    CONSOLIDATED BALANCE SHEET
                                   September 30,  December 31,
                                       1997          1996
                                   (Unaudited)     (Audited) 
                                      (Thousands of Dollars)
          ASSETS
Utility Plant
 Electric.......................    $1,188,164    $1,171,798
 Gas............................       146,971       145,375
 Common.........................        91,043        87,591
 Nuclear fuel...................        36,951        36,913
                                     1,463,129     1,441,677
 Less: Accumulated depreciation.       550,047       520,999
       Nuclear fuel amortization        32,262        29,748
                                       880,820       890,930
 Construction work in progress..        49,693        48,699
   Net Utility Plant............       930,513       939,629
Investments and Other Assets
 Prefunded Pension Costs........        20,320        10,672
 Other..........................        11,660        12,419
   Total Investments and 
    Other Assets................        31,980        23,091
Current Assets
 Cash and cash equivalents......        19,768         4,235
 Accounts receivable from 
  customers-net of allowance for
  doubtful accounts.............        41,633        48,080
 Accrued unbilled utility 
  revenues......................         9,172        16,042
 Other receivables..............         2,542         2,896
 Fuel, materials and supplies, 
  at average cost...............        25,928        28,095
 Special deposits and 
  prepayments...................        16,360        13,440
   Total Current Assets.........       115,403       112,788
Deferred Charges
 Regulatory assets..............       138,566       151,426
 Unamortized debt expense.......         5,099         5,393
 Other..........................        26,409        16,779
   Total Deferred Charges.......       170,074       173,598
Total Assets....................    $1,247,970    $1,249,106
         See Notes to Consolidated Financial Statements.
                                5<PAGE>
            CENTRAL HUDSON GAS & ELECTRIC CORPORATION
                    CONSOLIDATED BALANCE SHEET
                                   September 30,   December 31,
                                        1997          1996    
                                    (Unaudited)     (Audited) 
                                     (Thousands of Dollars)
                   LIABILITIES
Capitalization 
 Common Stock Equity
  Common stock, 30,000,000 shares
  authorized; shares issued
  ($5 par value):
  1997 - 17,369,787............
  1996 - 17,554,987............     $   87,775      $   87,775
 Paid-in capital...............        284,465         284,465
 Retained earnings.............        120,820         105,821
 Reacquired capital stock......         (6,066)           -
 Capital stock expense.........         (6,296)         (6,352)
   Total Common Stock Equity...        480,698         471,709

 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................        362,651         362,040
    Total Capitalization.......        899,379         889,779
Current Liabilities
 Current maturities 
  of long-term debt............          1,501           1,362
 Notes payable.................            -            15,600 
 Accounts payable..............         16,031          26,137
 Accrued taxes and interest....         19,990           5,347
 Dividends payable.............         10,096          10,112
 Accrued vacation..............          4,339           4,251
 Customer deposits.............          3,820           4,019
 Other.........................          5,661           6,676
   Total Current Liabilities...         61,438          73,504

                                6
<PAGE>
            CENTRAL HUDSON GAS & ELECTRIC CORPORATION
                    CONSOLIDATED BALANCE SHEET
                                   September 30,   December 31,
                                        1997          1996    
                                    (Unaudited)     (Audited) 
                                     (Thousands of Dollars)
                   LIABILITIES

Deferred Credits and Other
 Liabilities
 Regulatory liabilities........         76,089          74,587
 Operating reserves............          6,366           4,755
 Other.........................          8,978           9,155
   Total Deferred Credits and
    Other Liabilities..........         91,433          88,497

Accumulated Deferred Income Tax        195,720         197,326

Total Capitalization and
 Liabilities...................     $1,247,970      $1,249,106




















         See Notes to Consolidated Financial Statements.

                                7
<PAGE>
            CENTRAL HUDSON GAS & ELECTRIC CORPORATION
               CONSOLIDATED STATEMENT OF CASH FLOWS
                           (UNAUDITED)
                                          For the 9 Months Ended
                                               September 30,
                                           1997          1996  
                                         (Thousands of Dollars)
Operating Activities
  Net Income..........................   $ 45,316      $ 46,868

  Adjustments to reconcile net income
   to net cash provided by operating 
   activities:

    Depreciation, amortization and 
      nuclear fuel amortization.......     36,101        35,893
    Deferred income taxes, net........      4,637        11,041
    Allowance for equity funds used 
      during construction.............       (297)         (493)
    Nine Mile 2 Plant deferred 
      finance charges, net............     (3,642)       (3,642)
    Provision for uncollectibles......      2,475         2,872
    Accrued pension costs.............     (6,420)       (5,385)
    Deferred gas costs................      4,081        (2,442)
    Deferred gas refunds..............      2,183        (1,828)
    Other - net.......................     (2,601)        1,735

  Changes in current assets and
   liabilities, net:

    Accounts receivable and unbilled
     utility revenues.................     11,196         6,918 
    Fuel, materials and supplies......      2,167          (852)
    Special deposits and prepayments..     (2,920)       (6,396)
    Accounts payable..................    (10,106)          786 
    Accrued taxes and interest........     14,643         7,029
    Other current liabilities.........     (1,126)         (737)

  Net cash provided by operating
   activities.........................     95,687        91,367


                                8
<PAGE>
            CENTRAL HUDSON GAS & ELECTRIC CORPORATION
               CONSOLIDATED STATEMENT OF CASH FLOWS
                           (UNAUDITED)
                                          For the 9 Months Ended
                                                September 30,
                                            1997         1996 
                                          (Thousands of Dollars)

Investing Activities
  Additions to plant..................    (28,035)      (36,944)
  Allowance for equity funds used
   during construction................        297           493
  Net additions to plant..............    (27,738)      (36,451)
  Nine Mile 2 Plant decommissioning 
   trust fund.........................     (2,232)         (843) 
  Other - net.........................      1,082           (31)
  Net cash used in investing
   activities.........................    (28,888)      (37,325)

Financing Activities
   Proceeds from issuance of:
     Long-term debt...................       1,169        1,765
     Common stock.....................         -          1,818
   Repayments of short-term debt......     (15,600)         -
   Borrowings of short-term debt......         -          6,100
   Retirement and redemption of 
    long-term debt....................        (438)     (30,634)
   Retirement and redemption of
    cumulative preferred stock........         -        (13,000)
   Dividends paid on cumulative  
    preferred and common stock........     (30,331)     (30,378)
   Issuance and redemption costs......         -            359 
   Reacquired capital stock...........      (6,066)         -  
   Net cash used in financing 
    activities........................     (51,266)     (63,970)







                                9
<PAGE>
            CENTRAL HUDSON GAS & ELECTRIC CORPORATION
               CONSOLIDATED STATEMENT OF CASH FLOWS
                           (UNAUDITED)
                                          For the 9 Months Ended
                                                September 30,
                                            1997        1996 
                                         (Thousands of Dollars)  
Net Change in Cash and Cash 
 Equivalents..........................      15,533       (9,928)
                                         
Cash and Cash Equivalents - 
 Beginning Year.......................       4,235       15,478
                                         
Cash and Cash Equivalents - 
 End of Period........................   $  19,768     $  5,550

Supplemental Disclosure of
 Cash Flow Information
   Interest paid (net of amounts 
    capitalized)......................   $  13,365     $ 14,352
   Federal income tax paid............      14,111       11,875

















       See Notes to Consolidated Financial Statements.

                                10
<PAGE>
            CENTRAL HUDSON GAS & ELECTRIC CORPORATION
            Notes to Consolidated Financial Statements

1.   General 

The accompanying consolidated financial statements of Central
Hudson Gas & Electric Corporation (herein the Company) 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 Company's Annual Report, on Form 10-K, for the
year ended December 31, 1996 (Company's 10-K Report.)  

Due to the seasonal nature of the Company's operations, financial
results for interim periods are not necessarily indicative of
trends for a twelve-month period.  Certain 1996 amounts have been
reclassified to conform to the 1997 presentation.

2.   New Accounting Standards
       
In February 1997, the Financial Accounting Standards Board (FASB)
issued Statement of Financial Accounting Standards No. 128,
"Earnings per Share" (SFAS 128).  This Statement supersedes APB
Opinion No. 15, "Earnings per Share."  SFAS 128 simplifies the
standards for computing and presenting earnings per share (EPS)
and applies to companies with publicly held common stock, 
including utilities.  SFAS 128 replaces the presentation of
primary EPS with a presentation of basic EPS.  It also requires  
dual presentation of basic and diluted EPS on the face of the    
income statements for all entities with complex capital
structures.  In compliance with the requirements of this
Statement, the Company will adopt SFAS 128 in the fourth quarter 
of 1997.  The Company does not expect that the adoption of SFAS  
128 will have a significant impact on the reporting of EPS for   
the Company.

                                11
<PAGE>
In June 1997, the FASB issued Statement of Financial Accounting
Standards No. 130, "Reporting Comprehensive Income" (SFAS 130).  
This Statement establishes standards for the reporting and   
display of comprehensive income and its components in a full set 
of financial statements.  Comprehensive income includes charges 
or credits to equity that are not the result of transactions     
with owners.  In compliance with the requirements of this     
Statement, the Company will adopt SFAS 130 in the first quarter  
of 1998.  The Company does not expect that the adoption of SFAS  
130 will have a significant impact on the reporting requirements 
of the Company.

In June 1997, the FASB issued Statement of Financial
AccountingStandards No. 131 "Disclosures about Segments of an
Enterprise    and Related Information" (SFAS 131).  This
Statement establishes  standards for reporting information about
operating segments in   annual and interim financial statements. 
It also establishes     standards for related disclosures about
products and services,    geographic areas and major customers. 
In compliance with the     requirements of this Statement, the
Company expects to adopt      SFAS 131 in 1998.  The Company does
not expect that the adoption  of SFAS 131 will have a significant
impact on the reporting      requirements of the Company.

3.   Commitments and Contingencies

The Company faces a number of contingencies which arise during
the normal course of business and which have been discussed in
Note 8 (entitled "Commitments and Contingencies") to the
Consolidated Financial Statements included in the Company's 10-K
Report.  Except what is disclosed in Part II of this Quarterly
Report, on Form 10-Q, for the quarterly period ended September
30, 1997, and all documents previously filed with the  
Securities and Exchange Commission in 1997, there have been no   
material changes in the subject matters discussed in said 
Note 8.




                                12
<PAGE>
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS

CAPITAL RESOURCES AND LIQUIDITY

For the nine months ended September 30, 1997, cash
expendituresrelated to the construction program of the Company
amounted to $27.5 million.  The amount shown on the Consolidated
Statement of Cash Flows for "Net additions to plant" of $27.7
million includes the debt portion of $185,000 of the Allowance
for Funds Used During Construction ("AFDC", as such term is
described in Note 1, entitled "Summary of Significant Accounting
Policies," to the Consolidated Financial Statements included in
the Company's 10-K Report).  The cash requirements for such
expenditures were funded from internal sources.

The growth of retained earnings in the first nine months of 1997
contributed to the increase in the book value of common stock
from $26.87 at December 31, 1996 to $27.67 at September 30, 1997
and the increase in the common equity ratio from 52% at
 December 31, 1996 to 53.4% at September 30, 1997.

The Company has $52 million of committed short-term credit
facilities available.  In order to diversify its sources of
short-term financing, the Company has also entered into short-term credit
facilities agreements with several commercial banks. 
At September 30, 1997, the Company had no short-term debt
outstanding.  Authorization from the Public Service Commission of
the State of New York (PSC) limits the short-term borrowing
amount the Company may have outstanding, at any time, to $52
million in the aggregate.  Investments in short-term securities
were $27.1 million at the end of September 1997.

For the nine months ended September 30, 1997, the Company
repurchased 185,200 shares of its common stock for $6.1 million
under its stock repurchase program (See Note 5 to the
Consolidated Financial Statements included in the Company's 10-K
Report).
Based on a "strengthened financial profile, which is expected to
continue to improve," Standard & Poor's Corporation (S&P), on
July 16, 1997, upgraded the Company's senior secured debt rating
from "A-" to "A" and its senior unsecured debt and preferred
stock ratings from "BBB+" to "A-".
                                13


EARNINGS PER SHARE

Earnings per share of common stock were $.72 for the third
quarter of 1997, as compared to $.73 for the third quarter of
1996, a decrease of 1%. Earnings per share of common stock were
$2.46 for the nine months ended September 30, 1997, as compared
to $2.51 for the nine months ended September 30, 1996, a decrease
of 2%.

The decrease in earnings per share for the quarter ended
September 30, 1997, as compared to the same period in 1996,  
resulted primarily from decreased earnings related to fuel cost
incentives and energy efficiency regulatory programs.  Also
contributing to the lower earnings is an increase in operating
and maintenance expense primarily due to increased tree trimming
costs.

This decrease was largely offset by increased electric and gas
net operating revenues.  The increase in electric net operating
revenues was due to increased sales to residential and commercial
customers which was partially offset by reduced industrial usage. 
The increase in gas net operating revenues reflects the net
effect of increased usage by gas industrial customers and
decreased usage by gas residential customers.

Earnings per share for the nine months ended September 30, 1997
decreased compared to the same period in 1996.  The decrease
resulted primarily from a decline in electric and gas net
operating revenues.  This was largely attributable to decreased
sales due to colder winter, early spring and warmer summer
weather experienced in the first nine months of 1996 when
compared to the same period in 1997.  This unfavorable variance
was partially offset by decreased interest charges and the one-time charges
associated with the May 1996 optional redemption of
$30 million of the Company's 8 3/4% Series First Mortgage Bonds.







                                14
<PAGE>
RESULTS OF OPERATIONS

The following table reports the variation in the results of
operations for the three months and nine months ended September
30, 1997 compared to the same periods for 1996:

                                   3 MONTHS ENDED SEPTEMBER 30,  
                                                       INCREASE
                                    1997       1996   (DECREASE)
                                       (Thousands of Dollars)

Operating Revenues                $123,507   $117,684  $  5,823
Operating Expenses                 105,596     99,684     5,912
Operating Income                    17,911     18,000       (89)
Other Income                         2,019      2,260      (241)
Income before Interest Charges      19,930     20,260      (330)
Interest Charges                     6,562      6,595       (33)
                                                       
Net Income                          13,368     13,665      (297)
Dividends Declared on Cumulative
 Preferred Stock                       808        808       -   
Income Available for Common Stock $ 12,560   $ 12,857  $   (297)

                                   9 MONTHS ENDED SEPTEMBER 30,  
                                                       INCREASE
                                    1997       1996   (DECREASE)
                                       (Thousands of Dollars)

Operating Revenues                $393,987   $388,526  $  5,461
Operating Expenses                 335,433    327,068     8,365
Operating Income                    58,554     61,458    (2,904)
Other Income                         6,441      5,632       809
Income before Interest Charges      64,995     67,090    (2,095)
Interest Charges                    19,679     20,222      (543)
                                                       
Net Income                          45,316     46,868    (1,552)
Premium on Preferred Stock 
 Redemption                            -          378      (378)
Dividends Declared on Cumulative
 Preferred Stock                     2,422      2,422       -  
Income Available for Common Stock $ 42,894   $ 44,068  $ (1,174)

                                15
<PAGE>
OPERATING REVENUES

Operating revenues increased $5.8 million (5%) for the third
quarter of 1997 as compared to the third quarter of 1996 and
increased $5.5 million (1%) for the nine months ended September
30, 1997.  Details of these revenue changes by electric and gas
departments are as follows:

                      INCREASE (DECREASE) FROM PRIOR PERIOD   
                        THIRD QUARTER          NINE MONTHS    
                      Electric    Gas       Electric      Gas  
                                (Thousands of Dollars)
Customer Sales       $  (707)  $ 3,460 *    $ (7,081)  $ 2,784 *
Sales to Other           
 Utilities             1,092       (71)        2,397    (2,368)
Fuel and Gas Cost    
 Adjustment            1,683       (63)          229     9,346
Deferred Revenues        256      (134)          713    (1,278)
Miscellaneous            156       151 **        117       602 **
                     $ 2,480   $ 3,343      $ (3,625)  $ 9,086
 *Both firm and interruptible revenues.
**Includes revenues from transportation of customer-owned gas.

Revenues collected from or credited to customers under the
electric fuel and gas cost adjustment clauses do not affect
earnings since they are offset in fuel costs, with the exception
of revenues collected pursuant to incentive mechanisms.

SALES

The Company's sales vary seasonally in response to weather
conditions.  Generally electric revenues peak in the summer and
gas revenues peak in the winter.

Total kilowatt-hour sales of electricity within the Company's
service territory decreased 2%, while firm sales of natural gas
increased 5% in the third quarter of 1997 as compared to the
third quarter of 1996.  For the nine months ended September 30,
1997, electric sales decreased 3% and firm gas sales decreased 8%
compared to the same period last year.  Changes in sales from
last year by major customer classifications, including
interruptible gas sales, are set forth below.
                                16



Also indicated are the changes related to transportation of
       customer owned gas: 
                      INCREASE (DECREASE) FROM PRIOR PERIOD 
                        THIRD QUARTER          NINE MONTHS  
                      Electric    Gas        Electric  Gas 
    Residential          1 %      (6)%        (3)%     (9)%
    Commercial           1         1          (1)      (8)
    Industrial         (10)       40          (5)      13
    Interruptible       N/A      240          N/A     183
    Transportation of 
     Customer-owned 
     Gas                N/A       39          N/A      78
 
Billing heating degree days were 12% lower for the nine months
ended September 30, 1997 when compared to the same period in
1996.

Sales of electricity to residential customers in the third
quarter of 1997 increased 1% from the comparable prior year
period due to a 1% increase in the number of customers. 
Commercial sales in the third quarter of 1997 increased 1% as
compared to last year due to the net effect of a 2% increase in
the number of customers and a 1% decrease in usage per customer. 
Electric sales to industrial customers decreased 10% in the third
quarter of 1997 due primarily to a decrease in usage by a large
industrial customer.

For the nine months ended September 30, 1997, sales of
electricity to residential customers decreased 3% due to the net
effect of a 4% decrease in usage per customer and a 1% increase
in the number of customers.  Sales to commercial customers
decreased 1% due to the net effect of a 3% decrease in usage per
customer and a 2% increase in the number of customers.  Electric
sales to industrial customers decreased 5% for such nine-month
period due primarily to a decrease in usage by a large industrial
customer.

Sales of gas to residential customers for the third quarter of
1997 decreased 6% due to a 6% decrease in usage per customer.  
Sales of gas to commercial customers for the third quarter of
1997 increased 1% due to the net effect of a 2% increase in the
number of customers and a 1% decrease in usage per customer.  
                                17
<PAGE>
 Firm gas sales to industrial customers increased 40% for the
 third quarter of 1997 when compared to the same period in 1996. 
 
For the nine months ended September 30, 1997, residential gas
sales decreased 9% due to the combined effect of a 10% decrease
in usage per customer and a 1% increase in the number of
customers.  Commercial gas sales decreased 8% due to the net
effect of a 10% decrease in usage per customer and a 2% increase
in the number of customers.  Firm gas sales to industrial
customers for the nine months ended September 30, 1997 increased
13% due largely to an increase in usage by two large industrial
customers.

Interruptible gas sales increased 240% in the third quarter of
1997 and 183% for the nine months ended September 30, 1997 due
primarily to an increase in natural gas sold to the other
cotenant owners of the 1,200 MW Roseton Steam Electric Generating
Plant for use as boiler fuel at that plant.

Transportation gas volumes increased 39% for the third quarter of
1997 and 78% for the nine months ended September 30, 1997 due
primarily to increased gas transportation service provided to a
large industrial customer.



















                                18
<PAGE>
OPERATING EXPENSES

The following table reports the variation in the operating
expenses for the three months and nine months ended September 30,
1997 compared to the same periods for the prior year:
                           INCREASE (DECREASE) FROM PRIOR PERIOD
                             THIRD QUARTER       NINE MONTHS   
                           Amount    Percent   Amount   Percent
                                  (Dollars in Thousands)

Operating Expenses
 Fuel and Purchased
  Electricity              $ 3,354     12 %    $  1,402      2 %
 Purchased Natural Gas       2,884     56        10,904     31
 Other Expenses of
  Operation                   (896)    (4)       (1,374)    (2)
 Maintenance                   648     11        (1,558)    (7)
 Depreciation and Amortiza-
  tion                         195      2           586      2
 Taxes, Other than 
  Income Tax                   143      1          (240)    (1)

 Federal Income Tax           (416)    (5)       (1,355)    (5)
      Total                $ 5,912      6 %    $  8,365      3 %

The cost of fuel and purchased electricity increased $3.4 million
(12%) for the third quarter ended September 30, 1997 resulting
from the combined effect of a 3% increase in total system output
and an increase in the average cost of fuel used in electric
generation.

Purchased natural gas costs increased $2.9 million (56%) for the
third quarter of 1997 and $10.9 million (31%) for the nine 
months ended September 30, 1997 resulting primarily from higher
interruptible gas sales for usage as boiler fuel.






                                19
<PAGE>
COMMON STOCK DIVIDENDS

Reference is made to the subcaption "Common Stock Dividends and
Price Ranges" on Page 28 of Exhibit 13 to the 10-K Report, and
which is incorporated by reference in Part II, Item 5 of said
Report, for a discussion of the Company's dividend policies.  On
September 26, 1997, the Board of Directors of the Company
declared a quarterly dividend of $.535 per share, payable
November 1, 1997 to shareholders of record as of October 10,
1997.

STORM COSTS

On April 1, 1997, a snow and wind storm disrupted service to
approximately 100,000 customers in the Company's service
territory.  The restoration costs of the storm are approximately
$8.4 million and are reflected in "Deferred Charges-Regulatory
Assets" in the Consolidated Balance Sheet.  While the Company
believes these costs are recoverable in rates and has requested
the PSC to authorize deferral of these costs, the Company cannot
predict the outcome of its request before the PSC.

YEAR 2000

As the year 2000 approaches, the Company recognizes the need to
ensure its operations will not be adversely impacted by Year 2000
computer software failures.  The Company is addressing this issue
to ensure the availability and integrity of its financial systems
and the reliability of its operational systems.  The Company has
established processes for evaluating and managing the risks and
costs associated with this problem.  The Company has and will
continue to make certain investments in its software systems and
applications to ensure the Company is Year 2000 compliant.  The
financial impact to the Company has not been determined and is
not anticipated to have a material impact on the Company.





                                20


<PAGE>
Federal Income Tax Refund

In the second quarter of 1997 the Company received a $1.9 million
net refund as a result of audits by the Internal Revenue Service
of the Company's federal income tax returns for the years 1987 -
1991.  The Company is in the process of complying with the PSC
notification requirements for tax refunds before recognizing any
portion of the refund which may ultimately be available to
shareholders.

































                                21
<PAGE>
                   PART II - OTHER INFORMATION

Item 1. Legal Proceedings

Asbestos Litigation.  For a discussion of lawsuits against
Registrant (hereinafter called "the Company") involving asbestos,
see the caption "Legal Proceedings - Asbestos Litigation" in Item
3, Part I of the Company's Annual Report on Form 10-K for the
fiscal year ended December 31, 1996 ("10-K Report").

Since 1987, the Company has been involved as a defendant in the
"mass tort" asbestos litigation in the United States District
Courts for the Southern and Eastern Districts of New York and the
New York State Supreme Court, County of New York.  This
litigation involves thousands of plaintiffs who seek large
amounts of compensatory and punitive damages from numerous
defendants for deaths and injuries allegedly caused by exposure
to asbestos.  As of September 30, 1997, the Company has been a
defendant in approximately 1,190 such individual lawsuits.   Many
of these lawsuits have been disposed of without any payment by
the Company, or for immaterial amounts.  While the amounts
demanded in all the remaining lawsuits total several billions of
dollars, it is the Company's opinion, based on its experience in
such litigation and on information and relevant circumstances
known to it at this time, that these lawsuits will not have a
material adverse effect on the Company's financial position.
However, if the Company were ultimately held liable under these
lawsuits and insurance coverage were not available, the cost
thereof could have a material adverse effect (a reasonable
estimate of which cannot be made at this time) on the financial
condition of the Company if the Company could not recover all or
a substantial portion thereof in rates.  the Company's insurance
does not extend to punitive damages. 

Item 5.  Other Information

COMPETITION. Reference is made to the caption "Generally" in Item
1 of Part I of the Company's 10-K Report and the Company's
Current Report on Form 8-K dated April 1, 1997, for a discussion
of the settlement negotiations and Settlement Agreement
undertaken as part of the Public Service Commission of the State
of New York's ("PSC") Competitive Opportunities Proceeding.
                                22

At its September 17, 1997 session, the PSC discussed the status
of the current negotiations regarding the Settlement Agreement,
and indicated that further negotiation was needed on certain open
issues related to the auctioning of the Company's fossil-fuel
generating assets, the provision of certain types of meters, and
environmental program funding.  Negotiations are continuing with
respect to the final form of the Settlement Agreement, and the
Company cannot predict at this time what action the PSC will
ultimately take with respect to the Settlement Agreement, nor can
it predict the date on which the PSC will render its ultimate
decision.

Reference is also made to the caption "Recent Developments - New
York - Electric - Competitive Opportunities Proceeding" in
Management's Discussion and Analysis of Financial Condition and
Results of Operation incorporated by reference into the 10-K
Report, regarding the appeal to the Third Department of the
Appellate Division of the Supreme Court of New York State filed
by the members of the Energy Association of the State of New York
against the PSC regarding the PSC's Competitive Opportunities
Proceeding.  The PSC has agreed to extend the deadline for
perfecting such appeal for a period of six months from September
24, 1997.

Although the Company cannot predict the outcome of the
Competitive Opportunities Proceeding, it believes it continues to
meet the criteria for the application of Statement of Financial
Accounting Standards No. 71, "Accounting for the Effects of
Certain Types of Regulation," (SFAS 71).  Published reports have
indicated that the Securities and Exchange Commission has
questioned the continued applicability of SFAS 71 to certain
electric utilities other than the Company that face restructuring
and transition to competition.  The FASB Emerging Issues Task
Force (EITF) considered how SFAS 71 should be applied in light of
recent changes within the regulated utility industry.  The EITF
reached a consensus during a July 24, 1997 meeting.  The
consensus was as follows:

1.  An entity should discontinue application of SFAS 71 to the
electric generation portion of its business when a deregulation
transition plan is in place and its terms are known.

                                23
<PAGE>
2.  The decision to continue to carry some or all of the
"regulatory" assets and liabilities of the separable portion of
the business to which Statement of Financial Accounting Standards
No. 101, "Accounting for the Discontinuation of Application of
SFAS 71," is being applied (electric generation) should be
determined on the basis of where the regulated cash flows to
realize and settle them, respectively, will be derived.

3.  In applying the conclusion above, the entity should consider
the source of the regulated cash flows for the "regulatory"
assets and liabilities, and the costs or obligations that are
covered by that cash flow regardless of whether they are
"incurred" as of the date that application of SFAS 71 ceases.

4.  Deregulated and regulated portions of the business should be
shown separately in the financial statements.

The Company would expect to discontinue the application of SFAS
71 when the PSC approves the final form of the Settlement
Agreement.  When the application of SFAS 71 is discontinued, the
Company may have to record as expense or revenue certain
previously deferred items (regulatory assets and regulatory
liabilities), as well as write down plant assets, the effect of
which the Company cannot predict at this time.

Reference is also made to the caption "Other Information -
Competition" in Item 5 of Part II of the Company's Quarterly
Report on Form 10-Q for the quarter ended June 30, 1997, and to
the discussion of the Company's motion seeking rehearing of a PSC
Order dated June 23, 1997 regarding a retail access pilot program
for eligible commercial farms and food processors.  At its
session held on September 17, 1997, the PSC orally rejected such
motion.









                                24
<PAGE>
Item 6.  Exhibits and Reports on Form 8-K

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

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

            (12) --            Statement Showing Computation
                               of the Ratio of Earnings to 
                               Fixed Charges and the Ratio of
                               Earnings to Combined Fixed
                               Charges and Preferred Stock
                               Dividends.

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


(b)  Reports on Form 8-K.  During the period covered by this
Report on Form 10-Q, the Company filed no Current Reports on Form
8-K.

















                                25
<PAGE>
                            SIGNATURES

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

                    CENTRAL HUDSON GAS & ELECTRIC CORPORATION
                                (Registrant)


                    By:                                        
                                  Donna S. Doyle
                                   Controller 
                          Authorized Officer and Chief
                               Accounting Officer

Dated: October 30, 1997





















                                26

</PAGE>