<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.................June 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; 17,445,287 shares
outstanding as of June 30, 1997.
<PAGE>
                   CENTRAL HUDSON GAS & ELECTRIC CORPORATION

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

                                     INDEX





       PART I - FINANCIAL INFORMATION                                 PAGE

Item 1 - Consolidated Financial Statements 

         Consolidated Statement of Income -
          Three Months Ended June 30, 1997 and 1996                    1-2

         Consolidated Statement of Income -
          Six Months Ended June 30, 1997 and 1996                      3-4

         Consolidated Balance Sheet - June 30, 1997 
          and December 31, 1996                                        5-6

         Consolidated Statement of Cash Flows - 
          Six Months Ended June 30, 1997 and 1996                      7-8

         Notes to Consolidated Financial Statements                    9-10

Item 2 - Management's Discussion and Analysis of
          Financial Condition and Results of 
          Operations                                                  11-18


        PART II - OTHER INFORMATION

Item 1 - Legal Proceedings                                            19

Item 5 - Other Information                                            19-20

Item 6 - Exhibits and Reports on Form 8-K                             21

Signatures                                                            22










<PAGE>
<TABLE>                 PART I - FINANCIAL INFORMATION

ITEM 1 - CONSOLIDATED FINANCIAL STATEMENTS
<CAPTION>
                   CENTRAL HUDSON GAS & ELECTRIC CORPORATION
                       CONSOLIDATED STATEMENT OF INCOME
                                  (UNAUDITED)
                                                 For the 3 Months Ended 
                                                        June 30,
                                                    1997            1996  
<S>                                               (Thousands of Dollars)
Operating Revenues                              <C>              <C>
 Electric..............................         $   90,853       $  93,875
 Gas...................................             24,216          20,651
  Total - own territory................            115,069         114,526
 Electric sales to other utilities.....              3,503           1,942
 Gas sales to other utilities..........                 32             526
          Total Operating Revenues.....            118,604         116,994
Operating Expenses
 Operation:
  Fuel used in electric generation.....             13,274          10,220
  Purchased electricity................             12,509          15,052
  Purchased natural gas................             13,028           9,046
  Other expenses of operation..........             25,378          24,988
 Maintenance...........................              7,080           7,945
 Depreciation and amortization.........             10,904          10,710
 Taxes, other than income tax..........             15,740          16,042
 Federal income tax....................              5,849           6,625
          Total Operating Expenses.....            103,762         100,628

Operating Income.......................             14,842          16,366

Other Income
 Allowance for equity funds 
  used during construction.............                 82             153
 Federal income tax....................                169             667
 Other - net...........................              2,014             499
          Total Other Income...........              2,265           1,319

Income Before Interest Charges.........             17,107          17,685











                                     - 1 -
<PAGE>
                   CENTRAL HUDSON GAS & ELECTRIC CORPORATION
                       CONSOLIDATED STATEMENT OF INCOME
                                  (UNAUDITED)
<CAPTION>
                                                For the 3 Months Ended 
                                                        June 30,
                                                   1997            1996  
                                                 (Thousands of Dollars)
<S>                                             <C>              <C>
Interest Charges
 Interest on mortgage bonds............              3,559           3,778
 Interest on other long-term debt......              2,299           2,161
 Interest on short-term debt...........                  1             131  
 Other interest........................                609             500
 Allowance for borrowed funds 
  used during construction.............                (51)           (123)
 Amortization of expense on debt.......                226             235
          Total Interest Charges.......              6,643           6,682
    
Net Income............................             10,464           11,003

Dividends Declared on Cumulative
 Preferred Stock......................                808              808
Income Available for Common Stock.....              9,656           10,195
Dividends Declared on 
 Common Stock.........................              9,331            9,304  

Balance Retained in the Business......          $     325        $     891


Common Stock:
 Average Shares Outstanding (000s)....             17,475           17,555

 Earnings Per Share...................              $ .55            $ .58

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













                See Notes to Consolidated Financial Statements.

                                     - 2 -
<PAGE>
                   CENTRAL HUDSON GAS & ELECTRIC CORPORATION
                       CONSOLIDATED STATEMENT OF INCOME
                                  (UNAUDITED)
<CAPTION>
                                                 For the 6 Months Ended 
                                                        June 30,
                                                    1997            1996  
<S>                                               (Thousands of Dollars)
Operating Revenues                              <C>              <C>
 Electric..............................         $  195,772       $ 203,182
 Gas...................................             66,745          58,706
  Total - own territory................            262,517         261,888
 Electric sales to other utilities.....              7,864           6,559
 Gas sales to other utilities..........                 98           2,394
          Total Operating Revenues.....            270,479         270,841
Operating Expenses
 Operation:
  Fuel used in electric generation.....             28,206          32,861
  Purchased electricity................             27,467          24,765
  Purchased natural gas................             38,395          30,375
  Other expenses of operation..........             49,633          50,110
 Maintenance...........................             12,876          15,083
 Depreciation and amortization.........             21,808          21,417
 Taxes, other than income tax..........             33,439          33,822
 Federal income tax....................             18,012          18,950
          Total Operating Expenses.....            229,836         227,383

Operating Income.......................             40,643          43,458

Other Income
 Allowance for equity funds 
  used during construction.............                183             307
 Federal income tax....................                360             943 
 Other - net...........................              3,880           2,121
          Total Other Income...........              4,423           3,371

Income Before Interest Charges.........             45,066          46,829

Interest Charges
 Interest on mortgage bonds............              7,118           7,993
 Interest on other long-term debt......              4,381           4,244
 Interest on short-term debt...........                 94             142 
 Other interest........................              1,184           1,007
 Allowance for borrowed funds 
  used during construction.............               (113)           (247)
 Amortization of expense on debt.......                453             487
          Total Interest Charges.......             13,117          13,626




                                     - 3 -
<PAGE>
                   CENTRAL HUDSON GAS & ELECTRIC CORPORATION
                       CONSOLIDATED STATEMENT OF INCOME
                                  (UNAUDITED)

                                                For the 6 Months Ended 
                                                        June 30,
<CAPTION>                                          1997            1996  
                                                 (Thousands of Dollars)
<S>                                             <C>              <C>    
Net Income............................             31,949          33,203

Premium on Preferred Stock Redemption.               -                378
Dividends Declared on Cumulative
 Preferred Stock......................              1,615           1,615
Income Available for Common Stock.....             30,334          31,210
Dividends Declared on 
 Common Stock.........................             18,606          18,519

Balance Retained in the Business......          $  11,728        $ 12,691


Common Stock:
 Average Shares Outstanding (000s)....             17,504          17,543

 Earnings Per Share...................              $1.73           $1.78

 Dividends Declared...................             $1.065          $1.055






















                See Notes to Consolidated Financial Statements.

                                     - 4 -
<PAGE>
                   CENTRAL HUDSON GAS & ELECTRIC CORPORATION
                          CONSOLIDATED BALANCE SHEET
<CAPTION>
                                                June 30,       December 31,
                                                 1997*            1996     
<S>                                             (Thousands of Dollars)
          ASSETS
Utility Plant                             <C>               <C>
 Electric.......................              $1,185,555       $1,171,798
 Gas............................                 146,742          145,375
 Common.........................                  90,729           87,591
 Nuclear fuel...................                  36,943           36,913
                                               1,459,969        1,441,677
 Less: Accumulated depreciation.                 541,723          520,999
       Nuclear fuel amortization                  31,467           29,748
                                                 886,779          890,930
 Construction work in progress..                  45,712           48,699
   Net Utility Plant............                 932,491          939,629

Investments and Other Assets
 Prefunded pension costs........                  17,104           10,672
 Other..........................                  13,919           12,419
   Total Investments and Other
    Assets......................                  31,023           23,091

Current Assets
 Cash and cash equivalents......                  14,654            4,235
 Accounts receivable from 
  customers-net of allowance for
  doubtful accounts.............                  52,892           48,080
 Accrued unbilled utility 
  revenues......................                   8,997           16,042
 Other receivables..............                   2,650            2,896
 Fuel, materials and supplies, 
  at average cost...............                  23,478           28,095
 Special deposits and 
  prepayments...................                  12,382           13,440
   Total Current Assets.........                 115,053          112,788

Deferred Charges
 Regulatory Assets..............                 138,635          151,426
 Unamortized debt expense.......                   5,197            5,393
 Other..........................                  21,683           16,779
   Total Deferred Charges.......                 165,515          173,598

Total Assets....................              $1,244,082       $1,249,106

                See Notes to Consolidated Financial Statements.

* Unaudited

                                     - 5 -
<PAGE>
                   CENTRAL HUDSON GAS & ELECTRIC CORPORATION
                          CONSOLIDATED BALANCE SHEET
<CAPTION>                                     June 30,       December 31,
                                               1997*            1996    
<S>                                         (Thousands of Dollars)
                   LIABILITIES         <C>                  <C>
Capitalization 
 Common Stock Equity
  Common stock, 30,000,000 
  authorized; shares issued
  ($5 par value):
  1997 - 17,554,987 
  1996 - 17,554,987............            $   87,775         $   87,775
 Paid-in capital...............               284,465            284,465
 Retained earnings.............               117,549            105,821
 Reacquired capital stock......                (3,535)              -
 Capital stock expense.........                (6,315)            (6,352)
   Total Common Stock Equity...               479,939            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................               361,988            362,040
    Total Capitalization.......               897,957            889,779
Current Liabilities
 Current maturities 
  of long-term debt............                 1,501              1,362
 Notes payable.................                  -                15,600 
 Accounts payable..............                22,736             26,137
 Accrued taxes and interest....                14,172              5,347
 Dividends payable.............                10,138             10,112
 Accrued vacation..............                 4,339              4,251
 Customer deposits.............                 3,763              4,019
 Other.........................                 5,081              6,676
   Total Current Liabilities...                61,730             73,504
Deferred Credits and Other
 Liabilities
 Regulatory Liabilities........                74,761             74,587
 Operating reserves............                 5,967              4,755
 Other.........................                 9,333              9,155
   Total Deferred Credits and
    Other Liabilities..........                90,061             88,497
Accumulated Deferred Income Tax               194,334            197,326
Total Capitalization and
 Liabilities...................            $1,244,082         $1,249,106

                See Notes to Consolidated Financial Statements.
* Unaudited
                                     - 6 -
<PAGE>
                   CENTRAL HUDSON GAS & ELECTRIC CORPORATION
                     CONSOLIDATED STATEMENT OF CASH FLOWS
                                  (UNAUDITED)
<CAPTION>
                                                   For the 6 Months Ended
                                                          June 30, 
                                                    1997            1996  
<S>                                               (Thousands of Dollars)
Operating Activities                              <C>             <C>
  Net Income..........................            $ 31,949        $ 33,203
  Adjustments to reconcile net income
   to net cash provided by operating
   activities:
    Depreciation, amortization and 
     nuclear fuel amortization........              24,133          23,970
    Deferred income taxes, net........               1,404           5,547
    Allowance for equity funds used 
     during construction..............                (183)           (307)
    Nine Mile 2 Plant deferred 
     finance charges, net.............              (2,428)         (2,428)
    Provision for uncollectibles......               1,650           1,877
    Accrued pension costs.............              (4,459)         (3,601)
    Deferred gas costs................               7,146           1,582
    Deferred gas refunds..............               2,103          (1,788)
    Other - net.......................              (3,539)          1,304

  Changes in current assets and
   liabilities, net:
    Accounts receivable and unbilled
     utility revenues.................                 829             660
    Fuel, materials and supplies......               4,617             122
    Special deposits and prepayments..               1,058             (30)
    Accounts payable..................              (3,401)         (5,825)
    Accrued taxes and interest........               8,825           3,783
    Other current liabilities.........              (1,763)         (1,520)
  Net cash provided by operating
   activities.........................              67,941          56,549

Investing Activities
  Additions to plant..................             (17,684)        (21,321)
  Allowance for equity funds used
   during construction................                 183             307
  Net additions to plant..............             (17,501)        (21,014)
  Nine Mile 2 Plant decommissioning 
   trust fund.........................              (1,478)           (591)
  Other - net.........................                 712              67
  Net cash used in investing
   activities.........................             (18,267)        (21,538)



                                     - 7 -
<PAGE>
                   CENTRAL HUDSON GAS & ELECTRIC CORPORATION
                     CONSOLIDATED STATEMENT OF CASH FLOWS
                                  (UNAUDITED)
<CAPTION>
                                                   For the 6 Months Ended
                                                           June 30,
                                                     1997            1996 
                                                   (Thousands of Dollars)
<S>
Financing Activities                              <C>             <C>
   Proceeds from issuance of:
     Long-term debt...................                 932           1,240
     Common stock.....................                -              1,818
   Repayments of short-term debt......             (15,600)           - 
   Borrowings of short-term debt......                -             16,500
   Retirement and redemption of 
    long-term debt....................                (859)        (30,289)
   Retirement and redemption of
    cumulative preferred stock........                -            (13,000)
   Dividends paid on cumulative  
    preferred and common stock........             (20,193)        (20,266)
   Issuance and redemption costs......                -                488
   Redemption premium on cumulative
    preferred stock...................                -               (130)
   Reacquired capital stock...........              (3,535)           -   
   Net cash used in financing 
    activities........................             (39,255)        (43,639)

Net Change in Cash and Cash 
 Equivalents..........................              10,419          (8,628)
Cash and Cash Equivalents - 
 Beginning Year.......................               4,235          15,478

Cash and Cash Equivalents - 
 End of Period........................            $ 14,654        $  6,850


Supplemental Disclosure of
 Cash Flow Information
   Interest paid (net of amounts 
    capitalized)......................            $ 12,029         $13,219
   Federal income tax paid............              11,111           7,875







                See Notes to Consolidated Financial Statements.
</TABLE>
                                     - 8 -
<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 disclosure
 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.

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 


                                     - 9 -
<PAGE>
 130 will have a significant impact on the reporting requirements
 of the Company.

In June 1997, the FASB issued Statement of Financial Accounting 
 Standards 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 as what is disclosed in Part II of this
 Quarterly Report, on Form 10-Q, for the quarterly period ended
 June 30, 1997, the Quarterly Report, on Form 10-Q, for the
 quarterly period ended March 31, 1997 and in any Current Report,
 on Form 8-K, filed in 1997, there have been no material changes
 in the subject matters discussed in said Note 8.
























                                    - 10 -
<PAGE>
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS

CAPITAL RESOURCES AND LIQUIDITY

For the six months ended June 30, 1997, cash expenditures,
 related to the construction program of the Company, amounted to
 $17.4 million.  The amount shown on the Consolidated Statement
 of Cash Flows for "Net additions to plant" of $17.5 million
 includes the debt portion of $113,000 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 six months of 1997 
 contributed to the increase in the book value of common stock
 from $26.87 at December 31, 1996 to $27.51 at June 30, 1997 and
 the increase in the common equity ratio from 52% at December 31,
 1996 to 53.4% at June 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 June 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 $10.9 million at the end of June 1997.

For the six months ended June 30, 1997, the Company repurchased
 109,700 shares of its common stock for $3.5 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 secured debt rating from
 "A-" to "A" and its senior unsecured debt and preferred stock
 ratings from "BBB+" to "A-".








                                    - 11 -
<PAGE>
EARNINGS PER SHARE

Earnings per share of common stock were $.55 for the second
 quarter of 1997, as compared to $.58 for the second quarter of
 1996, a decrease of 5%. Earnings per share of common stock were
 $1.73 for the six months ended June 30, 1997, as compared to
 $1.78 for the six months ended June 30, 1996, a decrease of 3%.

The decrease in earnings per share for the quarter ended June 30,
 1997, as compared to the same period in 1996, resulted primarily
 from decreased electric and gas net operating revenues
 (including fuel costs and purchased electricity) attributable
 largely to a decrease in usage by residential and commercial
 customers.  The decrease in electric net operating revenue was
 also affected by decreased usage by electric industrial
 customers.  A 7% decrease in heating degree days contributed to
 the reduction in net operating revenues.  This unfavorable
 variation was substantially offset by decreased interest expense
 and the one-time charges (in 1996) associated with the optional
 redemption in May 1996 of $30 million of the Company's 8 3/4%
 Series First Mortgage Bonds at a redemption price of 102.07% of
 the principal amount.  Earnings per share were also impacted by
 the net effect of various other items, including increased
 depreciation costs and AFDC on capital expenditures, which were
 partially offset by an increase in other taxes.

The decrease in per share earnings for the six months ended
 June 30, 1997 as compared to the same period in 1996 resulted
 primarily from decreased electric and gas net operating revenues
 attributable largely to decreased sales occurring because of
 colder winter and early spring weather experienced in the first
 and second quarters of 1996, when compared to the same periods
 in 1997.  The unfavorable variance in this six-month period 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.















                                    - 12 -
<PAGE>
RESULTS OF OPERATIONS

The following tables report the variation in the results of
 operations for the three months and the six months ended
 June 30, 1997 compared to the same period for 1996:

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

Operating Revenues                       $118,604     $116,994    $  1,610 
Operating Expenses                        103,762      100,628       3,134
Operating Income                           14,842       16,366      (1,524)
Other Income                                2,265        1,319         946 
Income before Interest Charges             17,107       17,685        (578)
Interest Charges                            6,643        6,682         (39)
                                                                  
Net Income                                 10,464       11,003        (539)
Dividends Declared on Cumulative
 Preferred Stock                              808          808        -    
Income Available for Common Stock        $  9,656     $ 10,195    $   (539)



                                            6 MONTHS ENDED JUNE 30,   
                                                                INCREASE
                                           1997         1996   (DECREASE)
                                              (Thousands of Dollars)

Operating Revenues                       $270,479     $270,841    $   (362)
Operating Expenses                        229,836      227,383       2,453
Operating Income                           40,643       43,458      (2,815)
Other Income                                4,423        3,371       1,052
Income before Interest Charges             45,066       46,829      (1,763)
Interest Charges                           13,117       13,626        (509)
                                                                  
Net Income                                 31,949       33,203      (1,254)
Premium on Preferred Stock 
 Redemption                                  -             378        (378)
Dividends Declared on Cumulative
 Preferred Stock                            1,615        1,615        -   
Income Available for Common Stock        $ 30,334     $ 31,210    $   (876)








                                    - 13 -
<PAGE>
OPERATING REVENUES

Operating revenues increased $1.6 million (1%) for the second
quarter of 1997 as compared to the second quarter of 1996 and
decreased $362,000 (.1%) for the six months ended June 30, 1997. 
Details of these revenue changes by electric and gas departments
are as follows:

                           INCREASE (DECREASE) FROM PRIOR PERIOD   
                            SECOND QUARTER               SIX MONTHS    
                           Electric    Gas           Electric        Gas  
                                       (Thousands of Dollars)
Customer Sales            $ (2,320)   $ 2,051 *      $ (6,374)    $  (676)*
Sales to Other                
 Utilities                   1,561       (494)          1,305      (2,296)
Fuel and Gas Cost         
 Adjustment                   (740)     1,797          (1,454)      9,409 
Deferred Revenues               61       (341)            457      (1,144)
Miscellaneous                  (23)        58 **          (40)        451 **
                          $ (1,461)   $ 3,071        $ (6,106)    $ 5,744 

 *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. 
 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 3%, while firm sales of natural gas
 decreased 5%, for the second quarter of 1997 as compared to the
 second quarter of 1996.  For the six months ended June 30, 1997,
 electric sales decreased 3% and firm gas sales decreased 9%
 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.  Also indicated
 are changes related to transportation of customer owned gas:







                                    - 14 -
<PAGE>
                          INCREASE (DECREASE) FROM PRIOR PERIOD 
                           SECOND QUARTER               SIX MONTHS   
                          Electric      Gas           Electric    Gas 
    Residential             (3)%        (7)%            (5)%      (9)%
    Commercial              (1)         (1)             (2)       (9)   
    Industrial              (4)         17              (3)        7   
    Interruptible           N/A        189              N/A      149   
    Transportation of 
     Customer-owned 
     Gas                    N/A         73              N/A      101
 
Billing heating degree days were 7% lower for the quarter ended
 June 30, 1997 and 13% lower for the six months ended
 June 30, 1997 when compared to the same periods in 1996.

Sales of electricity to residential customers in the second 
 quarter of 1997 decreased 3% from the comparable prior year
 period due to the net effect of a 4% decrease in usage per
 customer and a 1% increase in the number of customers. 
 Commercial sales in the second quarter of 1997 decreased 1% as
 compared to last year 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 4%
 in the second quarter of 1997.

For the six months ended June 30, 1997, sales of electricity to 
 residential customers decreased 5% due to the net effect of a
 6% decrease in usage per customer and a 1% increase in the
 number of customers.  Sales to commercial customers decreased
 2% due to the net effect of a 4% decrease in usage per customer
 and a 2% increase in the number of customers.  Electric sales
 to industrial customers decreased 3% for such six-month period.

Sales of gas to residential customers for the second quarter of 
 1997 decreased 7% due to the net effect of an 8% decrease in
 usage per customer and a 1% increase in the number of
 customers.  Sales of gas to commercial customers for the second
 quarter of 1997 decreased 1% due to the net effect of a 4%
 decrease in usage per customer and a 3% increase in the number
 of customers.   Firm gas sales to industrial customers
 increased 17% for the second quarter of 1997 when compared to
 the same period in 1996, due primarily to an increase in usage
 by a large industrial customer.

For the six months ended June 30, 1997, residential gas sales 
 decreased 9% due to the net effect of an 11% decrease in usage
 per customer and a 2% increase in the number of customers. 
 Commercial gas sales decreased 9% due to the net effect of an
 11% decrease in usage per customer and a 2% increase in the
 number of customers.  Firm gas sales to industrial customers
 for the six months ended June 30, 1997 increased 7% due largely
 to an increase in usage by a large industrial customer.
                                    - 15 -<PAGE>
Interruptible gas sales increased 189% in the second quarter of 
 1997 and 149% for the six months ended June 30, 1997 due
 primarily to the 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 73% for the second quarter 
 and increased 101% for the six months ended June 30, 1997 due
 primarily to increased gas transportation service provided to a
 large industrial customer.

OPERATING EXPENSES

The following table reports the variation in the operating 
 expenses for the three months and six months ended June 30,
 1997 compared to the same periods for the prior year:

                                 INCREASE (DECREASE) FROM PRIOR PERIOD
                                  SECOND QUARTER            SIX MONTHS   
                                 Amount      Percent     Amount     Percent
                                        (Dollars in Thousands)  
Operating Expenses
 Fuel and Purchased
  Electricity                    $   511        2 %      $ (1,953)    (3) %
 Purchased Natural Gas             3,982       44           8,020     26 
 Other Expenses of
  Operation                          390        2            (477)    (1)
 Maintenance                        (865)     (11)         (2,207)   (15)
 Depreciation and
  Amortization                       194        2             391       2 
 Taxes, Other than 
  Federal Income Tax                (302)      (2)           (383)    (1)
 Federal Income Tax                 (776)     (12)           (938)    (5)
      Total                      $ 3,134        3 %      $  2,453       1 %

Purchased natural gas costs increased $4.0 million (44%) for the
 second quarter of 1997 and $8.0 million (26%) for the six
 months ended June 30, 1997 resulting primarily from higher
 interruptible gas sales for usage as boiler fuel.

Maintenance expenses decreased $2.2 million (15%) for the six 
 months ended June 30, 1997 due largely to decreased storm-
 related expense in 1997, exclusive of storm related costs
 discussed under the caption "Storm Costs" below.







                                    - 16 -
<PAGE>
OTHER INCOME

Other income increased $946,000 (72%) for the second quarter of 
 1997 and $1.1 million (31%) for the six months ended June 30,
 1997.  These increases were due largely to $1.1 million of one-
 time charges associated with the optional redemption of $30
 million 8 3/4% Series of First Mortgage Bonds in May 1996.

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 June 27, 1997, the Board of Directors of the Company
 declared a quarterly dividend of $.535 per share, payable
 August 1, 1997 to shareholders of record as of July 10, 1997,
 representing an increase of $.005, or 1%, over the $.53 per
 share level established one year ago.  The Company presently
 intends to increase future dividends by a modest amount if and
 to the extent supported by sustained earnings growth; however,
 any determination of future dividend declarations, and the
 amounts and dates of such dividends, will depend on the
 circumstances known at the time of consideration of such
 declaration.

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 $8.6 million and are reflected in "Deferred
 Charges-Regulatory Assets" in the Consolidated Balance Sheet. 
 The Company believes these costs are recoverable in rates and
 has requested the PSC to authorize deferral of these costs.

YEAR 2000

As the year 2000 approaches, the Company recognizes the need to 
 ensure its operations will not be adversely impacted by Year
 2000 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 and is not anticipated to have a material impact on the
 Company.

                                    - 17 -
<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.










































                                    - 18 -
<PAGE>
                          PART II - OTHER INFORMATION

Item 1. Legal Proceedings

Asbestos Litigation.  For a discussion of lawsuits against 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 June 15, 1997, the Company has been a
 defendant in approximately 1,135 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


1.  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.

On July 1, 1997, the PSC Administrative Law Judge issued a 
 Recommended Decision recommending that said Settlement
 Agreement not be approved in its present form.  The
 Administrative Law Judge based the recommendation in part on
 what he believed to be deficiencies in the provisions of the 
                                    - 19 -
<PAGE>
Settlement Agreement addressing stranded cost recovery and
proposed reductions in electric rates.  The Company filed a brief
outlining its exceptions to such Recommended Decision on July 22,
1997.  The Company cannot predict at this time what action the
PSC will take with respect to the Settlement Agreement and the
Administrative Law Judge's recommendation, nor can it predict the
date on which the PSC will render its ultimate decision.

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 facing
 restructuring and transition to competition.  Published reports
 also indicate that the FASB Emerging Issues Task Force is
 considering how SFAS 71 should be applied in light of recent
 changes within the regulated utility industry.  If the
 application of SFAS 71 were 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.

By Order, issued and effective June 23, 1997, the PSC ordered 
 Company, Niagara Mohawk Power Corporation, New York State
 Electric and Gas Corporation and Rochester Gas and Electric
 Corporation to unbundle their retail electric services in order
 to effect a retail access pilot program for eligible commercial
 farms and food processors ("Program").  The Program will be
 available for two years, commencing on November 1, 1997 in the
 case of the Company.  The Company believes there are few
 customers in its service territory eligible for the Program. 
 The Company is unable to determine the interrelationship of
 such Order with said Settlement Agreement.  On July 23, 1997,
 the Company filed a motion seeking rehearing of the June 23,
 1997 PSC Order.  The Company cannot predict at this time the
 ultimate outcome of this motion.

2. AIR EMISSIONS. Reference is made to the caption "Environmental
 Quality - Air" in Item 1 of Part I of the Company's 10-K Report
 for a discussion of regulations governing air emissions at the
 Company's generating plants.







                                    - 20 -
<PAGE>
Published reports have indicated that the federal Environmental 
 Protection Agency adopted on July 16, 1997 new air quality
 regulations that may have significant effects on the operation
 of fossil fossil fuel-burning generating facilities, by
 tightening restrictions on the emission of fine particles.  The
 Company is unable to predict at this time what impact, if any,
 such regulations (if adopted) will have on the operation of its
 coal-burning generating facilities.

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 a Current Report on Form
 8-K, dated April 1, 1997, relating to a certain Settlement
 Agreement entered into among the Company, the staff of the
 Public Service Commission of the State of New York ("PSC") and
 the New York State Department of Economic Development in
 connection with the ongoing Competitive Opportunities
 Proceeding( described under the caption "Competition - New York
 - Electric - Competitive Opportunities Proceeding" in
 "Management's Discussion and Analysis of Financial Condition
 and Results of Operations," which was incorporated by reference
 as Exhibit 13 to the 10-K Report) and filed with the PSC on
 March 20, 1997.  A copy of such Settlement Agreement was
 attached thereto as Exhibit (10).





                                    - 21 -
<PAGE>


                                  SIGNATURES

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

                         CENTRAL HUDSON GAS & ELECTRIC CORPORATION
                                      (Registrant)


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

Dated: July 31, 1997































                                    - 22 -
</PAGE>