FORM 10-Q/A

                                 AMENDMENT NO. 1

                                  UNITED STATES

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D. C. 20549

(Mark One)

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

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

For the transition period from............to....................
Commission file number....................................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 (845) 452-2000
                                                   --------------

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

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

      Common stock, par value $5.00 per share; and the number of shares
outstanding of Registrant's Common Stock, as of September 30, 2001, was
16,862,087. All shares are owned by CH Energy Group, Inc.

<PAGE>


                    CENTRAL HUDSON GAS & ELECTRIC CORPORATION

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

                                      INDEX



      PART I - FINANCIAL INFORMATION                              PAGE

Item 1 -  Consolidated Financial Statements                         1

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

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

          Consolidated Balance Sheet - September 30, 2001
           and December 31, 2000                                    3

          Consolidated Statement of Cash Flows -
           Nine Months Ended September 30, 2001 and 2000            5

          Notes to Consolidated Financial Statements                6

Item 2 -  Management's Discussion and Analysis of
           Financial Condition and Results of Operations           14

Item 3 -  Quantitative and Qualitative Disclosure
           about Market Risk                                       19

      PART II - OTHER INFORMATION

Item 1 -  Legal Proceedings                                        19

Item 6 -  Exhibits and Reports on Form 8-K                         20

Signatures                                                         20

Exhibit Index

<PAGE>




                         PART I - FINANCIAL INFORMATION

Item I - Consolidated Financial Statements

                    CENTRAL HUDSON GAS & ELECTRIC CORPORATION
                        CONSOLIDATED STATEMENT OF INCOME
                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                                            For the 3 Months
                                                                           Ended September 30,
                                                                          2001           2000
                                                                        --------       --------
                                                                         (Thousands of Dollars)
<S>                                                                     <C>           <C>
Operating Revenues
  Electric....................................................          $118,388      $126,982
  Gas.........................................................            11,121        11,971
                                                                        ---------     ---------
    Total - own territory.....................................           129,509       138,953
  Electric Sales to other utilities...........................               651        13,644
  Gas Sales to other utilities................................               151         1,769
                                                                        ---------     ---------
                                                                         130,311       154,366
                                                                        ---------     ---------
Operating Expenses
  Operation:
    Fuel used in electric generation..........................             1,108        24,331
    Purchased electricity.....................................            65,438        36,623
    Purchased natural gas.....................................             5,345         8,221
    Other expenses of operation...............................            23,502        31,876
  Depreciation and amortization...............................             6,325        11,991
  Taxes, other than income tax................................            10,358        14,505
  Federal/State income tax....................................             5,894         7,875
                                                                        ---------     ---------

                                                                         117,970       135,422
                                                                        ---------     ---------

Operating Income..............................................            12,341        18,944
                                                                        ---------     ---------

Other Income and (Deductions)
  Allowance for equity funds used during construction.........               104            (4)
  Federal/State income tax....................................               427           (69)
  Other - net.................................................             2,429         2,548
                                                                        ---------     ---------

                                                                           2,960         2,475
                                                                        ---------     ---------

Income before Interest Charges................................            15,301        21,419
                                                                        ---------     ---------

Interest Charges
  Interest on mortgage bonds..................................               670         2,570
  Interest on other long-term debt............................             2,162         3,591
  Other interest..............................................             2,499         1,665
  Allowance for borrowed funds used during construction.......               (82)         (202)
                                                                        ---------     ---------
                                                                           5,249         7,624
                                                                        ---------     ---------

Net Income....................................................            10,052        13,795

Dividends Declared on Cumulative Preferred Stock..............               807           807
                                                                        ---------     ---------

Income Available for Common Stock.............................            $9,245       $12,988
                                                                        =========     =========
</TABLE>



                 See Notes to Consolidated Financial Statements.

                                        1
<PAGE>



                    CENTRAL HUDSON GAS & ELECTRIC CORPORATION
                        CONSOLIDATED STATEMENT OF INCOME
                                   (UNAUDITED)
<TABLE>
<CAPTION>

                                                                         For the 9 Months
                                                                        Ended September 30,
                                                                        2001          2000
                                                                     ---------     ---------
                                                                      (Thousands of Dollars)
<S>                                                                  <C>           <C>
Operating Revenues
  Electric....................................................       $330,283      $341,727
  Gas.........................................................         90,000        72,683
                                                                     ---------     ---------
    Total - own territory.....................................        420,283       414,410
  Electric Sales to other utilities...........................          8,307        41,222
  Gas Sales to other utilities................................            203         3,850
                                                                     ---------     ---------
                                                                      428,793       459,482
                                                                     ---------     ---------
Operating Expenses
  Operation:
    Fuel used in electric generation..........................         14,765        64,339
    Purchased electricity.....................................        163,332        90,078
    Purchased natural gas.....................................         52,047        42,171
    Other expenses of operation...............................         84,700       101,743
  Depreciation and amortization...............................         20,771        35,989
  Taxes, other than income tax................................         37,569        45,424
  Federal/State income tax....................................         15,151        21,870
                                                                     ---------     ---------

                                                                      388,335       401,614
                                                                     ---------     ---------

Operating Income..............................................         40,458        57,868
                                                                     ---------     ---------

Other Income and (Deductions)
  Allowance for equity funds used during construction.........            281             -
  Federal/State income tax....................................         (1,387)         (216)
  Other - net.................................................          9,326         7,560
                                                                     ---------     ---------

                                                                        8,220         7,344
                                                                     ---------     ---------

Income before Interest Charges................................         48,678        65,212
                                                                     ---------     ---------

Interest Charges
  Interest on mortgage bonds..................................          4,541         8,772
  Interest on other long-term debt............................          8,648         9,267
  Other interest..............................................         10,118         5,447
  Allowance for borrowed funds used during construction.......           (222)         (527)
                                                                     ---------     ---------

                                                                       23,085        22,959
                                                                     ---------     ---------

Net Income....................................................         25,593        42,253

Dividends Declared on Cumulative Preferred Stock..............          2,422         2,422
                                                                     ---------     ---------

Income Available for Common Stock.............................        $23,171       $39,831
                                                                     =========     =========
</TABLE>



                 See Notes to Consolidated Financial Statements.

                                        2


<PAGE>


                    CENTRAL HUDSON GAS & ELECTRIC CORPORATION
                           CONSOLIDATED BALANCE SHEET

<TABLE>
<CAPTION>

                                                                  September 30,   December 31,
                                                                     2001            2000
                                      ASSETS                       (Unaudited)     (Audited)
                                                                   ----------     ------------
                                                                     (Thousands of Dollars)
<S>                                                                 <C>           <C>
Utility Plant
       Electric...............................................      $574,092      $1,277,617
       Gas....................................................       178,582         172,242
       Common.................................................       104,192          99,353
       Nuclear fuel...........................................        46,701          46,688
                                                                   ----------     -----------
                                                                     903,567       1,595,900

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

       Construction work in progress..........................        47,914          43,882
                                                                   ----------     -----------

               Net Utility Plant..............................       532,830         930,852
                                                                   ----------     -----------

Other Property and Plant......................................           971             973
                                                                   ----------     -----------

Prefunded Pension Costs and Other Investments
        Prefunded Pension Costs...............................        75,194          63,390
        Other Investments.....................................        16,199          18,199
                                                                   ----------     -----------

Total Prefunded Pension Costs and Other Investments...........        91,393          81,589
                                                                   ----------     -----------

Current Assets
       Cash and cash equivalents..............................        82,035          17,279
       Accounts receivable from customers-net of
             allowance for doubtful accounts..................        45,120          70,072
       Accrued unbilled utility revenues......................         9,893          19,751
       Other receivables......................................         4,441           4,377
       Fuel, materials and supplies, at average cost..........        14,156          27,460
       Special deposits and prepayments.......................        18,850          14,379
                                                                   ----------     -----------

                Total Current Assets..........................       174,495         153,318
                                                                   ----------     -----------

Deferred Charges and Other Assets
       Regulatory assets .....................................        35,201         155,230
       Unamortized debt expense...............................         3,593           4,869
       Fair value of derivative instruments...................        55,076               -
       Other Assets...........................................         5,012           5,467
                                                                   ----------     -----------

                Total Deferred Charges and Other Assets.......        98,882         165,566
                                                                   ----------     -----------

Accumulated Deferred Income Tax (Net).........................        17,503               -
                                                                   ----------     -----------

                          Total Assets........................      $916,074      $1,332,298
                                                                   ==========     ===========
</TABLE>



                 See Notes to Consolidated Financial Statements.

                                        3


<PAGE>


                    CENTRAL HUDSON GAS & ELECTRIC CORPORATION
                           CONSOLIDATED BALANCE SHEET
<TABLE>
<CAPTION>


                                                                      September 30,   December 31,
                                                                          2001           2000
                       CAPITALIZATION AND LIABILITIES                  (Unaudited)     (Audited)
                                                                      -------------  -------------
                                                                         (Thousands of Dollars)
<S>                                                                      <C>          <C>
Capitalization
        Common Stock Equity:
             Common stock, 30,000,000 shares authorized;
              shares issued ($5 par value):
                 2001 - 16,862,087
                 2000 - 16,862,087................................      $ 84,311      $   84,311
        Paid-in capital...........................................       174,980         273,238
        Retained earnings.........................................           999         114,546
        Capital stock expense.....................................        (5,809)         (5,865)
                                                                        ---------     -----------

                Total Common Stock Equity.........................       254,481         466,230
                                                                        ---------     -----------

        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............................................       235,873         320,370
                                                                        ---------     -----------

                Total Capitalization..............................       546,384         842,630
                                                                        ---------     -----------

Current Liabilities
        Current maturities of long-term debt......................             -          62,610
        Notes payable.............................................         8,000          25,000
        Accounts payable..........................................        24,642          36,719
        Accrued interest..........................................         3,142           6,315
        Dividends payable.........................................           807             807
        Accrued vacation..........................................         3,900           4,472
        Customer deposits.........................................         4,912           4,637
        Other.....................................................        (3,116)         12,695
                                                                        ---------     -----------

                Total Current Liabilities.........................        42,287         153,255
                                                                        ---------     -----------

Deferred Credits and Other Liabilities
        Regulatory liabilities....................................       271,192         118,574
        Operating reserves........................................         5,744           4,755
        Other.....................................................        50,467          18,636
                                                                        ---------     -----------

                Total Deferred Credits and Other Liabilities......       327,403         141,965
                                                                        ---------     -----------

Accumulated Deferred Income Tax (Net).............................             -         194,448
                                                                        ---------     -----------


                Total Capitalization and Liabilities..............      $916,074      $1,332,298
                                                                        =========     ===========

</TABLE>


                 See Notes to Consolidated Financial Statements.

                                        4

<PAGE>


                    CENTRAL HUDSON GAS & ELECTRIC CORPORATION
                      CONSOLIDATED STATEMENT OF CASH FLOWS
                                   (UNAUDITED)
<TABLE>
<CAPTION>

                                                                                  For the 9 Months Ended
                                                                                       September 30,
                                                                                    2001            2000
                                                                                 ------------     --------
                                                                                   (Thousands of Dollars)
<S>                                                                                 <C>           <C>
Operating Activities:
    Net Income............................................................          $ 25,593      $ 42,253

       Adjustments to reconcile net income to net cash provided by
         operating activities:
           Depreciation, amortization & nuclear fuel amortization..........           23,737        38,770
           Deferred income taxes, net......................................            2,485         4,457
           Nine Mile 2 Plant deferred finance charges, net.................            1,311        (3,572)
           Provision for uncollectibles....................................            1,875         1,725
           Net accrued/deferred pension costs..............................          (11,498)      (10,302)
           Net deferred gas costs/gas refunds..............................              237        (1,434)
           Other, net......................................................           16,567        (2,289)

         Changes in operating assets and liabilities, net:
           Accounts receivable and unbilled revenues.......................           32,873         1,695
           Fuel, materials and supplies....................................           (1,017)        1,787
           Special deposits and prepayments................................           (4,471)       (8,882)
           Accounts payable................................................          (12,080)        3,780
           Accrued taxes and interest......................................          (43,613)        5,750
           Deferred taxes related to sale of plants and NMP2 write-off.....         (233,876)            -
           Other, net......................................................           (3,135)       (1,861)
                                                                                 ------------    ----------

       Net Cash (Used In) Provided by Operating Activities.................         (205,012)       71,877
                                                                                 ------------    ----------

Investing Activities:

       Proceeds from sale of fossil generation plants......................          713,202             -
       Additions to plant..................................................          (40,829)      (41,198)
       Net return of equity from affiliate.................................                -        23,500
       Payments to Nine Mile 2 Plant decommissioning trust fund............             (651)         (651)
       Other, net..........................................................            3,339          (551)
                                                                                 ------------    ----------

       Net Cash Provided by (Used in) Investing Activities.................          675,061       (18,900)
                                                                                 ------------    ----------

Financing Activities:

       Proceeds from issuance of long-term debt............................                -        47,500
       Repayments of short-term debt.......................................          (17,000)      (45,000)
       Retirement and redemption of long-term debt.........................         (147,630)      (35,100)
       Dividends paid on cumulative preferred and common stock.............          (25,322)      (27,822)
       Special dividend to parent..........................................         (212,000)            -
       Issuance and redemption costs of long-term debt.....................           (3,341)         (313)
                                                                                 ------------    ----------

       Net Cash Used in Financing Activities...............................         (405,293)      (60,735)
                                                                                 ------------    ----------

Net Change in Cash and Cash Equivalents....................................           64,756        (7,758)

Cash and Cash Equivalents - Beginning of Year..............................           17,279        11,756
                                                                                 ------------    ----------

Cash and Cash Equivalents - End of Period..................................         $ 82,035      $  3,998
                                                                                 ============    ==========

Supplemental Disclosure of Cash Flow Information

       Interest paid.......................................................          $16,712       $15,656

       Federal & State income tax paid.....................................         $266,876       $17,800

</TABLE>

                 See Notes to Consolidated Financial Statements

                                        5

<PAGE>


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


                         CENTRAL HUDSON GAS & ELECTRIC CORPORATION
                         Notes to Consolidated Financial Statements

NOTE 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 of operations for the interim
periods presented. These condensed unaudited quarterly consolidated financial
statements do not contain the detail or footnote disclosures concerning
accounting policies and other matters which would be included in annual
consolidated financial statements and, accordingly, should be read in
conjunction with the audited Consolidated Financial Statements (including the
Notes thereto) included in the Company's Annual Report, on Form 10-K, for the
year ended December 31, 2000 (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.

NOTE 2 - REGULATORY MATTERS

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

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


                                       6
<PAGE>


Competitive Opportunities Proceeding Settlement Agreement

      As reported under the caption "Competitive Opportunities Proceeding
Settlement Agreement" in Note 2 to the Consolidated Financial Statements
included in the Company's 10-K Report, the Company had received approval from
its shareholders and regulators to form a holding company. The holding company
restructuring took place on December 15, 1999, at which time the Company became
the wholly-owned subsidiary of CH Energy Group, Inc. (Energy Group). The
competitive business subsidiaries of Energy Group are described in Item 1 of the
Company's 10-K Report under the caption "Other Affiliates of Central Hudson."

PSC Proceedings

      NINE MILE 2 PLANT: Reference is made to Note 3 - Nine Mile 2 Plant under
the caption "General" to the Consolidated Financial Statements included in the
Company's 10-K Report for a discussion of the proposed sale of the interests of
certain cotenant owners, including the Company, in the Nine Mile 2 Plant.

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

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

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

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

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

                                       7
<PAGE>

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

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

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

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

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

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

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

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

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

                                       8
<PAGE>


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

NOTE 3 - SEGMENTS AND RELATED INFORMATION

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

      The Company's reportable operating segments are its electric and gas
operations. All of the segments operate in New York State.

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

      A material change occurred with the Company's total assets at March 31,
2001 as compared to total assets at December 31, 2000. The net reduction of
$207.4 million related primarily to a decrease in net utility plant for the
electric segment, including the Company's investment in the Nine Mile 2 Plant,
due to the sale of the Company's interests in the Danskammer and Roseton
Generating Plants as follows:

                   Electric     Gas       Subsidiary        Total

3/31/01           $  914,799  $210,015        $89         $1,124,903

12/31/00           1,135,484   196,725         89          1,332,298
                  ----------  --------        ---         ----------
                  $ (220,685)   13,290        $ -         $ (207,395)
                  ==========  ========        ===         ==========

      The gas segment increased by $13.3 million because the gas regulator
station at these Plants remained the Company's property and was reclassified
from electric to gas.


                                       9
<PAGE>


Central Hudson Gas & Electric Segment Disclosure - FAS 131
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------
                                Quarter Ended September 30, 2001         Nine Months Ended September 30, 2001
-------------------------------------------------------------------------------------------------------------------
                               Electric       Gas          Total         Electric          Gas          Total
-------------------------------------------------------------------------------------------------------------------
<S>                            <C>          <C>          <C>             <C>              <C>           <C>
Revenues from external
customers                      $119,020     $11,182      $130,202        $338,534         $89,868       $428,402
-------------------------------------------------------------------------------------------------------------------
Intersegment revenues                19          90           109              56             335            391
-------------------------------------------------------------------------------------------------------------------
Total Revenues                 $119,039     $11,272      $130,311        $338,590         $90,203       $428,793
-------------------------------------------------------------------------------------------------------------------
Income Available for Common
Stock                          $  9,067     $   178      $  9,245        $  9,346         $13,825       $ 23,171
-------------------------------------------------------------------------------------------------------------------

<CAPTION>

-------------------------------------------------------------------------------------------------------------------
                                Quarter Ended September 30, 2000         Nine Months Ended September 30, 2000
-------------------------------------------------------------------------------------------------------------------
                               Electric       Gas          Total         Electric          Gas          Total
-------------------------------------------------------------------------------------------------------------------
<S>                            <C>          <C>          <C>             <C>              <C>           <C>
Revenues from external
customers                      $140,612     $13,294      $153,906        $382,884         $75,160       $458,044
-------------------------------------------------------------------------------------------------------------------
Intersegment revenues                14         446           460              65           1,374          1,439
-------------------------------------------------------------------------------------------------------------------
Total Revenues                 $140,626     $13,740      $154,366        $382,949         $76,534       $459,483
-------------------------------------------------------------------------------------------------------------------
Income Available for Common    $ 14,284     $(1,296)     $ 12,988        $ 33,498         $ 6,333       $ 39,831
Stock
-------------------------------------------------------------------------------------------------------------------

</TABLE>







                                       10
<PAGE>

NOTE 4 - NEW ACCOUNTING STANDARDS

Derivative Instruments and Hedging Activities - SFAS 133

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

      The Company uses derivative instruments to hedge the exposure to the
variability in cash flows associated with forecasted sales of gas and forecasted
sales and purchases of electricity. These derivatives are not formally
designated as hedges under the provisions of SFAS 133 because the related gains
and losses are included as part of the Company's commodity cost and/or price
reconciled in its natural gas and electric service charge clauses. The earnings
offset to these derivatives are, therefore, deferred for pass-back to or
recovery from customers under these adjustment mechanisms. The total fair value
of the Company derivatives at September 30, 2001 is $55.1 million due largely to
the conversion, effective July 1, 2001, of a multi-year transition purchase
power agreement (TPA) (see Item 2 of the Company's 10-K Report under the caption
"Load and Capacity") from a physical to a financial agreement. Under the terms
of the modified agreement, the Company will purchase electric energy volumes
covered by the TPA at market and financially net settle with the TPA
counter-party for differences between market prices and the fixed prices
stipulated in the TPA. The total net gain (realized and unrealized) year-to-date
associated with settled and open derivatives is $71.0 million, comprised largely
of unrealized gains associated with the TPA derivative, through October 2004.


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<PAGE>


Plant Decommissioning

      Reference is made to the caption "New Accounting Standards, Other FASB
Projects and NRC Policy Statement" of Note 1 - "Summary of Significant
Accounting Policies," to the Consolidated Financial Statements of the Company's
10-K Report. On July 5, 2001, the Financial Accounting Standards Board (FASB)
issued Statement No. 143, Accounting for Asset Retirement Obligations. Initially
started in 1994 as a project to account for the costs of nuclear
decommissioning, the FASB expanded the scope to include similar closure or
removal-type costs in other industries that are incurred at any time during the
life of an asset. That standard requires entities to record the fair value of a
liability for an asset retirement obligation in the period in which it is
incurred. When the liability is initially recorded, the entity capitalizes a
cost by increasing the carrying amount of the related long-lived asset. Over
time, the liability is accreted to its present value each period, and the
capitalized cost is depreciated over the useful life of the related asset. Upon
settlement of the liability, an entity either settles the obligation for its
recorded amount or incurs a gain or loss upon settlement. The standard is
effective for fiscal years beginning after June 15, 2002, with earlier
application encouraged. The Company is reviewing this new accounting standard
and cannot make any prediction at this time as to its ultimate effect(s) on its
financial condition, results of operations and cash flows.

Property, Plant and Equipment

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

      AcSEC drafted the proposed SOP to address diversity in accounting for
expenditures related to property, plant and equipment (PP&E), including
improvements, replacements, betterments, additions, repairs and maintenance. The
proposed

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<PAGE>

SOP addresses accounting and disclosure issues related to determining which PP&E
costs should be capitalized versus those that should be charged to expense as
incurred. The proposed SOP also addresses capitalization of indirect and
overhead costs and component accounting for PP&E.

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

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

Long-Lived Assets

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

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

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

NOTE 5 - 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 9 - "Commitments and
Contingencies," to the Consolidated Financial Statements included in the
Company's 10-K Report. Except for that which is disclosed in Part II of this
Quarterly Report, on Form 10-Q, for the quarterly period ended September 30,
2001, and all documents previously filed with the

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<PAGE>


Securities and Exchange Commission in 2001, there have been no material changes
in the subject matters discussed in Note 9.

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


Dated: November 16, 2001

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