<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.................March 31, 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; 17,484,187 shares
outstanding as of April 30, 1997.
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CENTRAL HUDSON GAS & ELECTRIC CORPORATION
FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 1997
INDEX
PART I - FINANCIAL INFORMATION PAGE
Item 1 - Consolidated Financial Statements
Consolidated Statement of Income -
Three Months Ended March 31, 1997 and 1996 1
Consolidated Balance Sheet - March 31, 1997
and December 31, 1996 3
Consolidated Statement of Cash Flows -
Three Months Ended March 31, 1997 and 1996 5
Notes to Consolidated Financial Statements 7
Item 2 - Management's Discussion and Analysis of
Financial Condition and Results of
Operations 8
PART II - OTHER INFORMATION
Item 1 - Legal Proceedings 14
Item 4 - Submission of Matters to a Vote of
Security Holders 14
Item 6 - Exhibits and Reports on Form 8-K 15
Signatures 17
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1 - CONSOLIDATED FINANCIAL STATEMENTS
CENTRAL HUDSON GAS & ELECTRIC CORPORATION
CONSOLIDATED STATEMENT OF INCOME
For the 3 Months Ended
March 31,
1997 1996
(Thousands of Dollars)
Operating Revenues
Electric.............................. $ 104,919 $ 109,306
Gas................................... 42,529 38,055
Total - own territory................ 147,448 147,361
Electric sales to other utilities..... 4,361 4,617
Gas sales to other utilities.......... 66 1,868
Total Operating Revenues..... 151,875 153,846
Operating Expenses
Operation:
Fuel used in electric generation..... 14,932 22,641
Purchased electricity................ 14,958 9,712
Purchased natural gas................ 25,367 21,329
Other expenses of operation.......... 24,254 25,123
Maintenance........................... 5,795 7,137
Depreciation and amortization......... 10,905 10,707
Taxes, other than income tax.......... 17,699 17,780
Federal income tax.................... 12,163 12,325
Total Operating Expenses..... 126,073 126,754
Operating Income....................... 25,802 27,092
Other Income and Deductions
Allowance for equity funds
used during construction............. 100 153
Federal income tax.................... 190 276
Other - net........................... 1,866 1,623
Total Other Income
and Deductions.............. 2,156 2,052
Income Before Interest Charges......... 27,958 29,144
Interest Charges
Interest on mortgage bonds............ 3,559 4,216
Interest on other long-term debt...... 2,082 2,082
Interest on short-term debt........... 93 11
Other interest........................ 576 507
Allowance for borrowed funds
used during construction............. (63) (124)
Amortization of expense on debt....... 226 252
Total Interest Charges....... 6,473 6,944
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CENTRAL HUDSON GAS & ELECTRIC CORPORATION
CONSOLIDATED STATEMENT OF INCOME
For the 3 Months Ended
March 31,
1997 1996
(Thousands of Dollars)
Net Income............................ 21,485 22,200
Premium on Preferred Stock Redemption. - 378
Dividends Declared on Cumulative
Preferred Stock...................... 808 808
Income Available for Common Stock..... 20,677 21,014
Dividends Declared on
Common Stock......................... 9,274 9,215
Balance Retained in the Business...... $ 11,403 $ 11,799
Common Stock:
Average Shares Outstanding (000s).... 17,534 17,532
Earnings Per Share................... $1.18 $1.20
Dividends Declared................... $ .53 $.525
See Notes to Consolidated Financial Statements.
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CENTRAL HUDSON GAS & ELECTRIC CORPORATION
CONSOLIDATED BALANCE SHEET
March 31, December 31,
1997 1996
(Thousands of Dollars)
ASSETS
Utility Plant
Electric....................... $1,175,568 $1,171,798
Gas............................ 145,591 145,375
Common......................... 89,859 87,591
Nuclear fuel................... 36,937 36,913
1,447,955 1,441,677
Less: Accumulated depreciation. 530,620 520,999
Nuclear fuel amortization 30,671 29,748
886,664 890,930
Construction work in progress.. 49,438 48,699
Net Utility Plant............ 936,102 939,629
Investments and Other Assets
Prefunded pension costs........ 13,888 10,672
Other.......................... 12,745 12,419
Total Investments and Other
Assets...................... 26,633 23,091
Current Assets
Cash and cash equivalents...... 6,940 4,235
Accounts receivable from
customers-net of allowance for
doubtful accounts............. 59,297 48,080
Accrued unbilled utility
revenues...................... 16,129 16,042
Other receivables.............. 1,824 2,896
Fuel, materials and supplies,
at average cost............... 24,364 28,095
Special deposits and
prepayments................... 19,153 13,440
Total Current Assets......... 127,707 112,788
Deferred Charges
Regulatory Assets.............. 140,633 151,426
Unamortized debt expense....... 5,295 5,393
Other.......................... 16,727 16,779
Total Deferred Charges....... 162,655 173,598
Total Assets.................... $1,253,097 $1,249,106
See Notes to Consolidated Financial Statements.
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CENTRAL HUDSON GAS & ELECTRIC CORPORATION
CONSOLIDATED BALANCE SHEET
March 31, December 31,
1997 1996
(Thousands of Dollars)
LIABILITIES
Capitalization
Common Stock Equity
Common stock, 30,000,000
authorized; shares out-
standing ($5 par value):
1997 - 17,506,987
1996 - 17,554,987............ $ 87,775 $ 87,775
Paid-in capital............... 284,465 284,465
Retained earnings............. 117,223 105,821
Reacquired capital stock...... (1,548) -
Capital stock expense......... (6,333) (6,352)
Total Common Stock Equity... 481,582 471,709
Cumulative Preferred Stock
Not subject to mandatory
redemption.................. 21,030 21,030
Subject to mandatory
redemption.................. 35,000 35,000
Total Cumulative Preferred
Stock..................... 56,030 56,030
Long-term Debt................ 362,671 362,040
Total Capitalization....... 900,283 889,779
Current Liabilities
Current maturities
of long-term debt............ 1,670 1,362
Notes payable................. 1,700 15,600
Accounts payable.............. 16,809 26,137
Accrued taxes and interest.... 23,555 5,347
Dividends payable............. 10,082 10,112
Accrued vacation.............. 4,339 4,251
Customer deposits............. 3,994 4,019
Other......................... 4,860 6,676
Total Current Liabilities... 67,009 73,504
Deferred Credits and Other
Liabilities
Regulatory Liabilities........ 76,279 74,587
Operating reserves............ 5,767 4,755
Other......................... 9,347 9,155
Total Deferred Credits and
Other Liabilities.......... 91,393 88,497
Accumulated Deferred Income Tax 194,412 197,326
Total Capitalization and
Liabilities................... $1,253,097 $1,249,106
See Notes to Consolidated Financial Statements.
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<PAGE>
CENTRAL HUDSON GAS & ELECTRIC CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOWS
For the 3 Months Ended
March 31,
1997 1996
(Thousands of Dollars)
Operating Activities
Net Income.......................... $ 21,485 $ 22,200
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, amortization and
nuclear fuel amortization........ 12,120 11,995
Deferred income taxes, net........ (364) 2,022
Allowance for equity funds used
during construction.............. (101) (153)
Nine Mile 2 Plant deferred
finance charges, net............. (1,214) (1,214)
Provision for uncollectibles...... 825 1,052
Accrued pension costs............. (2,336) (1,897)
Deferred gas costs................ 6,151 3,020
Deferred gas refunds.............. (141) (1,608)
Other - net....................... 5,469 1,036
Changes in current assets and
liabilities, net:
Accounts receivable and unbilled
utility revenues................. (11,057) (10,177)
Fuel, materials and supplies...... 3,731 544
Special deposits and prepayments.. (5,713) (7,178)
Accounts payable.................. (9,328) (1,729)
Accrued taxes and interest........ 18,208 15,840
Other current liabilities......... (1,753) (1,311)
Net cash provided by operating
activities......................... 35,982 32,442
Investing Activities
Additions to plant.................. (8,352) (9,726)
Allowance for equity funds used
during construction................ 101 153
Net additions to plant.............. (8,251) (9,573)
Nine Mile 2 Plant decommissioning
trust fund......................... (170) (205)
Other - net......................... (229) 34
Net cash used in investing
activities......................... (8,650) (9,744)
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<PAGE>
CENTRAL HUDSON GAS & ELECTRIC CORPORATION
CONSOLIDATED STATEMENT OF CASH FLOWS
For the 3 Months Ended
March 31,
1997 1996
(Thousands of Dollars)
Financing Activities
Proceeds from issuance of:
Long-term debt................... 1,650 529
Common stock..................... - 1,739
Repayments of short-term debt...... (13,900) -
Retirement and redemption of
long-term debt.................... (718) (234)
Retirement and redemption of
cumulative preferred stock........ - (13,000)
Dividends paid on cumulative
preferred and common stock........ (10,111) (10,244)
Issuance and redemption costs...... - (16)
Redemption premium on cumulative
preferred stock................... - (130)
Reacquired capital stock........... (1,548) -
Net cash used in financing
activities........................ (24,627) (21,356)
Net Change in Cash and Cash
Equivalents.......................... 2,705 1,342
Cash and Cash Equivalents -
Beginning Year....................... 4,235 15,478
Cash and Cash Equivalents -
End of Period........................ $ 6,940 $ 16,820
Supplemental Disclosure of
Cash Flow Information
Interest paid (net of amounts
capitalized)...................... $ 1,282 $ 1,193
Federal income tax paid............ - 200
See Notes to Consolidated Financial Statements.
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<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 Registrant or 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 Standard
In February 1997, the Financial Accounting Standards Board (FASB)
issued Statement of Financial Accounting Standards No. 128,
"Earnings per Share" (SFAS 128). SFAS 128 establishes 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 standard, 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.
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
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.
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<PAGE>
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
CAPITAL RESOURCES AND LIQUIDITY
For the three months ended March 31, 1997, cash expenditures,
related to the construction program of the Company, amounted to
$8.2 million. The amount shown on the Consolidated Statement of
Cash Flows for "Net additions to plant" of $8.3 million includes
the debt portion of $63,000 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 three 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 March 31, 1997 and
the increase in the common equity ratio from 52% at December 31,
1996 to 53.3% at March 31, 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 entered into short-term
credit facilities agreements with several commercial banks. At
March 31, 1997, the Company had $1.7 million of short-term debt
outstanding. Authorization from the Public Service Commission
of the State of New York (PSC), however, limits the short-term
borrowing amount the Company may have outstanding, at any time,
to $52 million in the aggregate.
For the three months ended March 31, 1997, the Company
repurchased 48,000 shares of its common stock for $1.5 million
under its stock repurchase program (see Note 5 to the
Consolidated Financial Statements included in the Company's 10-K
Report).
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<PAGE>
EARNINGS PER SHARE
Earnings per share of common stock were $1.18 for the first
quarter of 1997, as compared to $1.20 for the first quarter of
1996, a decrease of 2%.
The decrease in earnings per share for the quarter ended
March 31, 1997, as compared to the same period in 1996, resulted
primarily from decreased electric and gas net operating revenues
(including fuel and purchased electric) attributable largely to
decreased sales due to warmer winter weather experienced in the
first quarter of 1997 when compared to the same period in 1996.
Earnings per share in the first quarter of 1997, when compared
to the comparable period in 1996, were also unfavorably affected
by increased depreciation costs, increased taxes other than
income tax and decreased AFDC on capital expenditures. This
unfavorable variance was partially offset by decreased interest
expense and the one-time redemption premium resulting,
respectively, from the optional redemption in 1996 of mortgage
bonds and preferred stock. Also offsetting this unfavorable
variance were decreased operation and maintenance costs in 1997
resulting primarily from decreased storm restoration costs and a
net decrease in employee labor and benefit costs for the first
quarter of 1997, which was partially offset by increased
electric distribution cost.
RESULTS OF OPERATIONS
The following table reports the variation in the results of
operations for the three months ended March 31, 1997 compared to
the same period for 1996:
3 MONTHS ENDED MARCH 31,
INCREASE
1997 1996 (DECREASE)
(Thousands of Dollars)
Operating Revenues $151,875 $153,846 $ (1,971)
Operating Expenses 126,073 126,754 (681)
Operating Income 25,802 27,092 (1,290)
Other Income & Deductions 2,156 2,052 104
Income before Interest Charges 27,958 29,144 (1,186)
Interest Charges 6,473 6,944 (471)
Net Income 21,485 22,200 (715)
Premium on Preferred Stock
Redemption - 378 (378)
Dividends Declared on Cumulative
Preferred Stock 808 808 -
Income Available for Common Stock $ 20,677 $ 21,014 $ (337)
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<PAGE>
OPERATING REVENUES
Operating revenues decreased $2 million or (1%) for the first
quarter of 1997 as compared to the first quarter of 1996.
Details of these revenue changes by electric and gas departments
are as follows:
INCREASE (DECREASE) FROM PRIOR PERIOD
FIRST QUARTER
ELECTRIC GAS
(Thousands of Dollars)
Customer Sales $(4,054) $(2,727)*
Sales to Other
Utilities (256) (1,802)
Fuel and Gas Cost
Adjustment (714) 7,612
Deferred Revenues 397 (803)
Miscellaneous (17) 393 **
$(4,644) $ 2,673
*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 4%, while firm sales of natural gas
decreased 11%, for the first quarter of 1997 as compared to the
first quarter of 1996. Changes in sales from last year by major
customer classifications including interruptible gas sales, are
set forth below.
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<PAGE>
Also indicated are the changes related to transportation of
customer owned gas:
INCREASE (DECREASE) FROM PRIOR PERIOD
FIRST QUARTER
ELECTRIC GAS
Residential (5)% (10)%
Commercial (4) (13)
Industrial - 1
Interruptible N/A 69
Transportation of
Customer-owned Gas N/A 123
Billing degree days were 16% lower for the quarter ended
March 31, 1997 than for the same period last year.
Sales of electricity to residential customers in the first
quarter of 1997 decreased 5% from the comparable prior year
period resulting from the net effect of an 6% decrease in usage
per customer and a 1% increase in the number of customers.
Commercial sales in the first quarter of 1997 decreased 4% as
compared to last year resulting from the net effect of a 5%
decrease in usage per customer and a 1% increase in the number
of customers. The reduced usage per customer for residential
and commercial customers was due primarily to lower billing
degree days in the first quarter of 1997 compared to 1996.
Sales of gas to residential customers for the first quarter of
1997 decreased 10% due to the net effect of a 12% decrease in
usage per customer and a 2% increase in the number of
customers. Commercial sales for the first quarter of 1997
decreased 13% due to the net effect of a 14% decrease in usage
per customer and a 1% increase in the number of customers. As
with electric sales, the reduced usage per gas customer for
residential and commercial customers was due primarily to lower
billing degree days in the first quarter of 1997 compared to
the same period for 1996.
Interruptible gas sales increased 69% in the first quarter of
1997 due primarily to an increase in natural gas sold for use
as a boiler fuel at the Roseton Steam Electric Generating
Plant. Due to sharing arrangements that are in place for
interruptible gas sales, variations from year to year have a
minimal impact on earnings.
Transportation gas volumes increased 123% for the first quarter
of 1997 attributable primarily to increased gas transportation
service provided to a large industrial customer.
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<PAGE>
OPERATING EXPENSES
The following table reports the variation in the operating
expenses for the three months ended March 31, 1997 compared to
the same period for the prior year:
INCREASE (DECREASE) FROM PRIOR PERIOD
FIRST QUARTER
AMOUNT PERCENT
(Dollars in Thousands)
Fuel and Purchased
Electricity $ (2,463) (8)%
Purchased Natural Gas 4,038 19
Other Expenses of Operation (869) (4)
Maintenance (1,342) (19)
Depreciation and Amortiza-
tion 198 2
Taxes, Other than
Federal Income Tax (81) (1)
Federal Income Tax (162) (1)
Total $ (681) (1)%
The cost of fuel and purchased electricity decreased $2.5 million
or (8%) for the first quarter of 1997 due primarily to the
combined effect of a decrease in the electric generation volume
and a decrease in the cost of fuel for electric generation.
The decrease was partially offset by an increase in purchased
electric.
Purchased natural gas costs increased $4 million or 19% for the
first quarter of 1997 primarily reflecting an increase in the
restoration of deferred gas costs related to the Company's gas
cost adjustment as noted above under the caption "Operating
Revenues."
Maintenance expenses decreased $1.3 million or (19%) for the
first quarter of 1997 due largely to decreased storm costs in
1997.
COMMON STOCK DIVIDENDS
Reference is made to the subcaption "Common Stock Dividends and
Price Ranges" on Page 29 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 March 21, 1997, the Board of Directors of the Company
declared a quarterly dividend of $.53 per share, payable May 1,
1997 to shareholders of record as of April 10, 1997.
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<PAGE>
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 estimated to
be between $9 million and $10 million and will be reflected in
the second quarter financial statements. The Company believes
these costs are recoverable in rates and will request of the
PSC deferral of these costs to be considered in the next
request for electric rate increases (however, see the
discussion in the Company's report, on Form 8-K, dated April 1,
1997 with respect to a proposed freeze in the Company's
electric rates).
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<PAGE>
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
Asbestos Litigation. For a discussion of suits against
Registrant involving asbestos, see the caption "Legal Proceedings
- - Asbestos Litigation" in Item 3, Part I of Registrant's Annual
Report on Form 10-K for the fiscal year ended December 31, 1996
("10-K Report").
Since 1987, Registrant 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 April 15, 1997, Registrant has been a
defendant in approximately 1,085 such individual lawsuits. Many
of these lawsuits have been disposed of without any payment by
Registrant, or for immaterial amounts. While the amounts
demanded in all the remaining lawsuits total several billions of
dollars, it is Registrant'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 Registrant's financial position.
However, if Registrant 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 Registrant if Registrant could not recover all or a
substantial portion thereof in rates. Registrant's insurance
does not extend to punitive damages.
Item 4. Submission of Matters to a Vote of Security Holders
Annual Meeting of Shareholders. Registrant's Annual Meeting
of Shareholders was held on April 1, 1997. The following matters
were voted upon at such meeting:
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<PAGE>
(a) Election of Directors. All of the nominees proposed as
directors by the Board of Directors were elected, and no other
nominees were proposed. The number of shares voted for each such
director, and the number of shares withheld for each such
director, out of a total number of shares voted of 14,940,959,
are as follows:
Name of Director Shares For Shares Withheld
L. Wallace Cross 14,792,256 148,703
Jack Effron 14,795,212 145,747
Frances D. Fergusson 14,787,928 153,031
Heinz K. Fridrich 14,789,710 151,249
Edward F.X. Gallagher 14,797,300 143,659
Paul J. Ganci 14,796,020 144,939
Charles LaForge 14,794,930 146,029
John E. Mack III 14,793,510 147,449
Edward P. Swyer 14,795,445 145,514
(b) Independent Accountants. The appointment by the Board
of Directors of Price Waterhouse LLP as Registrant's Independent
Accountants for the year 1997 was ratified by a vote of the
shareholders as follows:
Shares For Shares Against Shares Abstaining Broker Non-Votes
14,764,209 55,391 121,359 N/A
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 Ration of
Earnings to Combined Fixed
Charges and Preferred Stock
Dividends.
(27) -- Financial Data Schedule,
pursuant to Item 601(c) of
Regulation S-K.
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<PAGE>
(b) Reports on Form 8-K. During the period covered by this
Report on Form 10-Q, Registrant filed a Current Report on Form 8-
K, dated April 1, 1997, relating to a certain Settlement
Agreement entered into among Registrant, 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).
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<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the Registrant has duly caused this report to be signed
on its behalf by the undersigned hereunder duly authorized.
CENTRAL HUDSON GAS & ELECTRIC CORPORATION
(Registrant)
By: DONNA S. DOYLE
Donna S. Doyle
Controller
Authorized Officer and Chief
Accounting Officer
Dated: May 7, 1997
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</PAGE>
<TABLE> <S> <C>
<ARTICLE> OPUR1
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED BALANCE SHEET, CONSOLIDATED STATEMENT OF INCOME AND CONSOLIDATED
STATEMENT OF CASH FLOWS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1997
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> $936,102
<OTHER-PROPERTY-AND-INVEST> $26,633
<TOTAL-CURRENT-ASSETS> $127,707
<TOTAL-DEFERRED-CHARGES> $162,655
<OTHER-ASSETS> $0
<TOTAL-ASSETS> $1,253,097
<COMMON> $87,775
<CAPITAL-SURPLUS-PAID-IN> $276,584
<RETAINED-EARNINGS> $117,223
<TOTAL-COMMON-STOCKHOLDERS-EQ> $481,582
$35,000
$21,030
<LONG-TERM-DEBT-NET> $362,671
<SHORT-TERM-NOTES> $0
<LONG-TERM-NOTES-PAYABLE> $0
<COMMERCIAL-PAPER-OBLIGATIONS> $0
<LONG-TERM-DEBT-CURRENT-PORT> $1,670
$0
<CAPITAL-LEASE-OBLIGATIONS> $0
<LEASES-CURRENT> $0
<OTHER-ITEMS-CAPITAL-AND-LIAB> $351,144
<TOT-CAPITALIZATION-AND-LIAB> $1,253,097
<GROSS-OPERATING-REVENUE> $151,875
<INCOME-TAX-EXPENSE> $12,163
<OTHER-OPERATING-EXPENSES> $113,910
<TOTAL-OPERATING-EXPENSES> $126,073
<OPERATING-INCOME-LOSS> $25,802
<OTHER-INCOME-NET> $2,156
<INCOME-BEFORE-INTEREST-EXPEN> $27,958
<TOTAL-INTEREST-EXPENSE> $6,473
<NET-INCOME> $21,485
$808
<EARNINGS-AVAILABLE-FOR-COMM> $20,677
<COMMON-STOCK-DIVIDENDS> $9,274
<TOTAL-INTEREST-ON-BONDS> $0
<CASH-FLOW-OPERATIONS> $35,982
<EPS-PRIMARY> $1.18
<EPS-DILUTED> $0
</TABLE>
<TABLE> EXHIBIT 12
CENTRAL HUDSON GAS & ELECTRIC CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS
<CAPTION>
1997
3 Months 12 Months
Ended Ended Year Ended December 31,
March 31 March 31 1996 1995 1994 1993 1992
<S> <C> <C> <C> <C> <C> <C> <C>
Earnings:
A. Net Income $21,485 $ 55,367 $ 56,082 $ 52,722 $ 50,929 $ 50,390 $ 47,688
B. Federal Income Tax 11,973 30,992 31,068 28,687 26,806 27,158 24,363
C. Earnings before Income Taxes 33,458 86,359 87,150 81,409 77,735 77,548 72,051
D. Total Fixed Charges 1 6,675 26,751 27,231 30,433 32,679 33,820 34,888
E. Total Earnings $40,133 $113,110 $114,381 $111,842 $110,414 $111,368 $106,939
Preferred Dividend Requirements:
F. Allowance for Preferred Stock
Dividends Under IRC Sec 247 $ 808 $ 3,230 $ 3,231 $ 4,903 $ 5,127 $ 5,562 $ 5,544
G. Less Allowable Dividend Deduction 32 127 127 528 528 528 544
H. Net Subject to Gross-up 776 3,103 3,104 4,375 4,599 5,034 5,000
I. Ratio of Earnings before Income
Taxes to Net Income (C/A) 1.557 1.560 1.554 1.544 1.526 1.539 1.511
J. Pref. Dividend (Pre-tax) (HxI) 1,208 4,840 4,824 6,755 7,018 7,747 7,555
K. Plus Allowable Dividend Deduction 32 127 127 528 528 528 544
L. Preferred Dividend Factor 1,240 4,967 4,951 7,283 7,546 8,275 8,099
M. Fixed Charges (D) 6,675 26,751 27,231 30,433 32,679 33,820 34,888
N. Total Fixed Charges
and Preferred Dividends $ 7,915 $ 31,718 $ 32,182 $ 37,716 $ 40,225 $ 42,095 $ 42,987
O. Ratio of Earnings to Fixed
Charges (E/D) 6.01 4.23 4.20 3.68 3.38 3.29 3.07
P. Ratio of Earnings to Fixed Charges
and Preferred Dividends (E/N) 5.07 3.57 3.55 2.97 2.74 2.65 2.49
<FN>
1 Includes a portion of rent expense deemed to be representive of the interest factor.
</FN>
</TABLE>
