XNYS:CHG Quarterly Report 10-Q Filing - 3/31/2012

Effective Date 3/31/2012



 
UNITED STATES
 
SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

FORM 10-Q

(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, 2012

OR

o
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
 
Registrant, State of Incorporation
Address and Telephone Number
 
IRS Employer
Identification No.
 
             
     
     
 
0-30512
 
CH Energy Group, Inc.
(Incorporated in New York)
284 South Avenue
Poughkeepsie, New York 12601-4839
(845) 452-2000
 
14-1804460
 
             
     
     
 
1-3268
 
Central Hudson Gas & Electric Corporation
(Incorporated in New York)
284 South Avenue
Poughkeepsie, New York 12601-4839
(845) 452-2000
 
14-0555980
 
 


 
 
 

 
 
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 registrants were required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

CH Energy Group, Inc.
Yes  þ
 
No  o
Central Hudson Gas & Electric Corporation
Yes  þ
 
No  o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

CH Energy Group, Inc.
Yes  þ
 
No  o
Central Hudson Gas & Electric Corporation
Yes  þ
 
No  o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.  (Check one):

CH Energy Group, Inc.
 
Central Hudson Gas & Electric Corporation
Large Accelerated Filer þ
 
Large Accelerated Filer o
Accelerated Filer o
 
Accelerated Filer o
Non-Accelerated Filer o
 
Non-Accelerated Filer þ
Smaller Reporting Company o
 
Smaller Reporting Company o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act):

CH Energy Group, Inc.
Yes  o
 
No  þ
Central Hudson Gas & Electric Corporation
Yes  o
 
No  þ

As of the close of business on April 30, 2012 (i) CH Energy Group, Inc. had outstanding 14,916,204 shares of Common Stock ($0.10 per share par value) and (ii) all of the outstanding 16,862,087 shares of Common Stock ($5 per share par value) of Central Hudson Gas & Electric Corporation were held by CH Energy Group, Inc.

CENTRAL HUDSON GAS & ELECTRIC CORPORATION MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTIONS (H)(1)(a) AND (b) OF FORM 10-Q AND IS THEREFORE FILING THIS FORM WITH THE REDUCED DISCLOSURE FORMAT PURSUANT TO GENERAL INSTRUCTIONS (H)(2)(a), (b) AND (c).
 
 
 

 
 
FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 2012



 
CH Energy Group, Inc.
PAGE
   
 
Three Months Ended March 31, 2012 and 2011
1
     
   
 
Three Months Ended March 31, 2012 and 2011
2
     
   
 
Three Months Ended March 31, 2012 and 2011
3
     
   
 
March 31, 2012, December 31, 2011 and March 31, 2011
4
     
   
 
Three Months Ended March 31, 2012 and 2011
6

Central Hudson Gas & Electric Corporation
 
   
 
Three Months Ended March 31, 2012 and 2011
7
     
   
 
Three Months Ended March 31, 2012 and 2011
7
     
   
 
Three Months Ended March 31, 2012 and 2011
8
     
   
 
March 31, 2012, December 31, 2011 and March 31, 2012
9
     
   
 
Three Months Ended March 31, 2012 and 2011
11

 
 
 

 
 
TABLE OF CONTENTS
 
   
PAGE
     
Management’s Discussion and Analysis of Financial Condition and Results of Operations
53
     
Quantitative and Qualitative Disclosure About Market Risk
81
     
Controls and Procedures
81


Legal Proceedings
82
     
Risk Factors
82
     
ITEM 2 Unregistered Sales of Equity Securities and Use of Proceeds 84
     
ITEM 4 Mine Safety Disclosures 84
     
Exhibits
84
     
85
   
86
_______________________________________________
 
FILING FORMAT

This Quarterly Report on Form 10-Q is a combined quarterly report being filed by two different registrants:  CH Energy Group, Inc. (“CH Energy Group”) and Central Hudson Gas & Electric Corporation (“Central Hudson”), a wholly owned subsidiary of CH Energy Group.  Except where the content clearly indicates otherwise, any reference in this report to CH Energy Group includes all subsidiaries of CH Energy Group, including Central Hudson.  Central Hudson makes no representation as to the information contained in this report in relation to CH Energy Group and its subsidiaries other than Central Hudson.
 
 
 
(In Thousands, except per share amounts)
 
 
 
Three Months Ended
March 31,
 
 
 
2012
   
2011
 
Operating Revenues
 
 
   
 
 
Electric
  $ 129,272     $ 154,570  
Natural gas
    55,850       75,482  
Competitive business subsidiaries:
               
Petroleum products
    84,632       92,632  
Other
    4,318       4,288  
   Total Operating Revenues
    274,072       326,972  
Operating Expenses
               
Operation:
               
Purchased electricity and fuel used in electric generation
    45,059       70,268  
Purchased natural gas
    24,614       41,798  
Purchased petroleum
    70,305       75,766  
Other expenses of operation - regulated activities
    59,886       69,233  
Other expenses of operation - competitive business subsidiaries
    12,422       12,519  
Merger related costs
    5,219       -  
Depreciation and amortization
    10,624       10,085  
Taxes, other than income tax
    13,642       13,301  
   Total Operating Expenses
    241,771       292,970  
Operating Income
    32,301       34,002  
Other Income and Deductions
               
Income from unconsolidated affiliates
    52       464  
Interest on regulatory assets and other interest income
    2,160       1,866  
Regulatory adjustments for interest costs
    319       383  
Business development costs
    (58 )     (235 )
Other - net
    (378 )     (569 )
   Total Other Income (Deductions)
    2,095       1,909  
Interest Charges
               
Interest on long-term debt
    6,218       6,740  
Interest on regulatory liabilities and other interest
    1,584       1,482  
   Total Interest Charges
    7,802       8,222  
 
               
Income before income taxes, non-controlling interest and preferred dividends of subsidiary
    26,594       27,689  
Income Taxes
    11,771       10,615  
Net Income from Continuing Operations
    14,823       17,074  
 
               
Discontinued Operations
               
Income from discontinued operations before tax
    -       150  
Income tax expense from discontinued operations
    -       35  
Net Income from Discontinued Operations
    -       115  
 
               
Net Income
    14,823       17,189  
 
               
Net Income attributable to non-controlling interest:
               
Dividends declared on Preferred Stock of subsidiary
    242       242  
Net Income Attributable to CH Energy Group
    14,581       16,947  
 
               
Dividends declared on Common Stock
    8,279       8,427  
Change in Retained Earnings
  $ 6,302     $ 8,520  
 
The Notes to Financial Statements are an integral part hereof.
 
 
CH ENERGY GROUP CONSOLIDATED STATEMENT OF INCOME (CONT'D) (UNAUDITED)
(In Thousands, except per share amounts)
 
 
 
Three Months Ended
March 31,
 
 
 
2012
   
2011
 
Common Stock:
 
 
   
 
 
Average shares outstanding - Basic
    14,882       15,645  
Average shares outstanding - Diluted
    15,143       15,838  
 
               
Income from continuing operations attributable to CH Energy Group common shareholders:
               
Earnings per share - Basic
  $ 0.98     $ 1.07  
Earnings per share - Diluted
  $ 0.96     $ 1.06  
 
               
Income from discontinued operations attributable to CH Energy Group common shareholders:
               
Earnings per share - Basic
  $ -     $ 0.01  
Earnings per share - Diluted
  $ -     $ 0.01  
 
               
Amounts attributable to CH Energy Group common shareholders:
               
Earnings per share - Basic
  $ 0.98     $ 1.08  
Earnings per share - Diluted
  $ 0.96     $ 1.07  
Dividends Declared per Share
  $ 0.555     $ 0.540  
 
 
(In Thousands)
 
 
 
Three Months Ended
March 31,
 
 
 
2012
   
2011
 
Net Income
  $ 14,823     $ 17,189  
 
               
Other Comprehensive Loss:
               
Net unrealized loss on investments held by equity method investees - net of tax benefit of $38 and $27
    (58 )     (41 )
 
               
Other comprehensive loss
    (58 )     (41 )
 
               
Comprehensive Income
    14,765       17,148  
 
               
Comprehensive income attributable to non-controlling interest
    242       242  
 
               
Comprehensive income attributable to CH Energy Group
  $ 14,523     $ 16,906  
 
 
The Notes to Financial Statements are an integral part hereof.
 
 
(In Thousands)
 
 
 
Three Months Ended
March 31,
 
 
 
2012
   
2011
 
Operating Activities:
 
 
   
 
 
Net income
  $ 14,823     $ 17,189  
Adjustments to reconcile net income to net cash provided by operating activities:
               
Depreciation
    9,499       9,885  
Amortization
    1,125       1,037  
Deferred income taxes - net
    11,598       9,177  
Bad debt expense
    2,500       2,458  
Undistributed equity in earnings of unconsolidated affiliates
    (52 )     (464 )
Pension expense
    7,233       8,289  
Other post-employment benefits ("OPEB") expense
    1,996       1,999  
Regulatory liability - rate moderation
    (1,033 )     (3,451 )
Revenue decoupling mechanism recorded
    (950 )     5,280  
Regulatory asset amortization
    1,722       1,743  
Gain on sale of assets
    (79 )     -  
Changes in operating assets and liabilities - net of business acquisitions:
               
Accounts receivable, unbilled revenues and other receivables
    (7,932 )     (27,400 )
Fuel, materials and supplies
    5,425       6,781  
Special deposits and prepayments
    (4,407 )     (1,894 )
Income and other taxes
    17       (2,242 )
Accounts payable
    (2,144 )     (9,611 )
Accrued interest
    997       1,234  
Customer advances
    (5,212 )     (9,264 )
Pension plan contribution
    (28,165 )     (8,157 )
Revenue decoupling mechanism collected
    (1,310 )     1,742  
Regulatory asset - storm deferral
    (3,042 )     -  
Regulatory asset - manufactured gas plant ("MGP") site remediation
    951       559  
Regulatory asset - Temporary State Assessment
    (3,332 )     (2,272 )
Deferred natural gas and electric costs
    7,883       25,334  
Other - net
    4,500       1,821  
Net cash provided by operating activities
    12,611       29,773  
Investing Activities:
               
Proceeds from sale of assets
    96       41  
Additions to utility and other property and plant
    (25,887 )     (19,228 )
Acquisitions made by competitive business subsidiaries
    -       (1,961 )
Other - net
    (637 )     (477 )
Net cash used in investing activities
    (26,428 )     (21,625 )
Financing Activities:
               
Redemption of long-term debt
    (36,000 )     -  
Proceeds from issuance of long-term debt
    48,000       -  
Borrowings of short-term debt - net
    64,500       16,500  
Dividends paid on Common Stock
    (8,269 )     (8,523 )
Dividends paid on Preferred Stock of subsidiary
    (242 )     (242 )
Shares repurchased
    (2,993 )     (8,533 )
Other - net
    (593 )     (228 )
Net cash provided by (used in) financing activities
    64,403       (1,026 )
Cash Included in Net Current Assets Held for Sale
    -       (603 )
Net Change in Cash and Cash Equivalents
    50,586       6,519  
Cash and Cash Equivalents at Beginning of Period
    15,281       29,420  
Cash and Cash Equivalents at End of Period
  $ 65,867     $ 35,939  
 
               
Supplemental Disclosure of Cash Flow Information:
               
Interest paid
  $ 5,351     $ 5,932  
Federal and state income taxes paid
  $ 16     $ 162  
Additions to plant included in liabilities
  $ 4,126     $ 2,981  
 
The Notes to Financial Statements are an integral part hereof.
 
 
(In Thousands)
 
 
 
March 31,
   
December 31,
   
March 31,
 
 
 
2012
   
2011
   
2011
 
ASSETS
 
 
   
 
   
 
 
Utility Plant
 
 
   
 
   
 
 
Electric
  $ 1,017,986     $ 1,008,394     $ 972,543  
Natural gas
    301,609       305,664       295,914  
Common
    151,086       147,286       143,398  
Gross Utility Plant
    1,470,681       1,461,344       1,411,855  
 
                       
Less: Accumulated depreciation
    390,307       388,784       378,038  
Net
    1,080,374       1,072,560       1,033,817  
 
                       
Construction work in progress
    66,518       58,847       50,588  
Net Utility Plant
    1,146,892       1,131,407       1,084,405  
 
                       
Non-Utility Property & Plant
                       
Griffith non-utility property & plant
    31,456       31,669       30,032  
Other non-utility property & plant
    524       524       55,927  
Gross Non-Utility Property & Plant
    31,980       32,193       85,959  
 
                       
Less:  Accumulated depreciation - Griffith
    22,220       22,006       20,679  
Less:  Accumulated depreciation - other
    -       -       1,755  
Net Non-Utility Property & Plant
    9,760       10,187       63,525  
 
                       
Current Assets
                       
Cash and cash equivalents
    65,867       15,281       35,939  
Accounts receivable from customers - net of allowance for doubtful accounts of $7.0 million, $7.0 million and $6.8 million respectively
    96,574       90,937       126,427  
Accrued unbilled utility revenues
    14,283       15,299       14,778  
Other receivables
    9,096       9,512       6,775  
Fuel, materials and supplies
    19,689       25,114       17,925  
Regulatory assets
    49,683       49,526       36,809  
Income tax receivable
    -       432       2,504  
Fair value of derivative instruments
    9       349       108  
Special deposits and prepayments
    25,777       21,795       24,565  
Assets held for sale
    -       -       8,653  
Accumulated deferred income tax
    8,456       5,895       17,492  
Total Current Assets
    289,434       234,140       291,975  
 
                       
Deferred Charges and Other Assets
                       
Regulatory assets - pension plan
    151,737       159,020       134,199  
Regulatory assets - other
    119,559       114,980       86,069  
Fair value of derivative instruments
    -       931       -  
Goodwill
    37,752       37,512       36,455  
Other intangible assets - net
    12,564       13,173       13,691  
Unamortized debt expense
    5,035       4,535       4,831  
Investments in unconsolidated affiliates
    2,559       2,777       7,077  
Other investments
    15,212       14,461       13,506  
Other
    5,884       6,989       5,444  
Total Deferred Charges and Other Assets
    350,302       354,378       301,272  
Total Assets
  $ 1,796,388     $ 1,730,112     $ 1,741,177  
 
The Notes to Financial Statements are an integral part hereof.
 
 
CH ENERGY GROUP CONSOLIDATED BALANCE SHEET (CONT'D) (UNAUDITED)
(In Thousands, except share amounts)
 
 
 
March 31,
   
December 31,
   
March 31,
 
 
 
2012
   
2011
   
2011
 
CAPITALIZATION AND LIABILITIES
 
 
   
 
   
 
 
Capitalization
 
 
   
 
   
 
 
  CH Energy Group Common Shareholders' Equity
 
 
   
 
   
 
 
Common Stock (30,000,000 shares authorized: $0.10 par value; 16,862,087 shares issued) 14,914,853 shares, 14,894,964 shares and 15,620,765 shares outstanding, respectively
  $ 1,686     $ 1,686     $ 1,686  
Paid-in capital
    348,306       351,053       350,290  
Retained earnings
    248,693       242,391       238,862  
Treasury stock - 1,947,234 shares, 1,967,123 shares and 1,241,322 shares, respectively
    (91,978 )     (92,908 )     (53,702 )
Accumulated other comprehensive income
    296       354       418  
Capital stock expense
    (328 )     (328 )     (328 )
Total CH Energy Group Common Shareholders' Equity
    506,675       502,248       537,226  
Non-controlling interest in subsidiary
    -       -       172  
Total Equity
    506,675       502,248       537,398  
Preferred Stock of subsidiary
    21,027       21,027       21,027  
Long-term debt
    494,002       446,003       466,960  
Total Capitalization
    1,021,704       969,278       1,025,385  
Current Liabilities
                       
Current maturities of long-term debt
    1,006       37,006       36,941  
Notes payable
    71,000       6,500       16,500  
Accounts payable
    36,183       43,904       44,960  
Accrued interest
    7,330       6,333       7,632  
Dividends payable
    8,521       8,511       8,678  
Accrued vacation and payroll
    7,291       6,702       6,868  
Customer advances
    17,315       22,527       10,045  
Customer deposits
    7,235       6,647       7,590  
Regulatory liabilities
    8,959       11,161       17,379  
Fair value of derivative instruments
    22,118       19,791       9,626  
Accrued environmental remediation costs
    7,064       6,652       2,162  
Accrued income and other taxes
    817       -       -  
Deferred revenues
    3,853       4,801       3,857  
Liabilities held for sale
    -       -       321  
Other
    16,200       17,905       13,527  
Total Current Liabilities
    214,892       198,440       186,086  
Deferred Credits and Other Liabilities
                       
Regulatory liabilities - OPEB
    8,974       6,988       8,930  
Regulatory liabilities - other
    112,122       108,887       113,621  
Operating reserves
    3,181       3,383       2,898  
Fair value of derivative instruments
    1,688       -       10,090  
Accrued environmental remediation costs
    10,559       11,036       3,201  
Accrued OPEB costs
    53,757       53,055       46,227  
Accrued pension costs
    95,896       121,911       96,524  
Tax reserve
    3,174       3,172       11,952  
Other
    20,520       18,802       17,966  
Total Deferred Credits and Other Liabilities
    309,871       327,234       311,409  
Accumulated Deferred Income Tax
    249,921       235,160       218,297  
Commitments and Contingencies
                       
Total Capitalization and Liabilities
  $ 1,796,388     $ 1,730,112     $ 1,741,177  
 
The Notes to Financial Statements are an integral part hereof.
 
 
(In Thousands, except share amounts)
 
 
 
CH Energy Group Common Shareholders
   
 
   
 
 
 
 
Common Stock
   
Treasury Stock
   
 
   
 
   
 
   
 
   
 
   
 
 
 
 
Shares Issued
   
Amount
   
Shares Repurchased
   
Amount
   
Paid-In Capital
   
Capital Stock Expense
   
Retained Earnings
   
Accumulated Other Comprehensive Income / (Loss)
   
Non-controlling Interest
   
Total Equity
 
Balance at December 31, 2010
    16,862,087     $ 1,686       (1,062,825 )   $ (44,887 )   $ 350,360     $ (328 )   $ 230,342     $ 459     $ 172     $ 537,804  
Comprehensive income:
                                                                               
Net income
                                                    17,189               -       17,189  
Dividends declared on Preferred Stock of subsidiary
                                                    (242 )                     (242 )
Change in fair value:
                                                                               
Investments
                                                            (41 )             (41 )
Dividends declared on common stock
                                                    (8,427 )                     (8,427 )
Treasury shares activity - net
                    (178,497 )     (8,815 )     (70 )                                     (8,885 )
Balance at March 31, 2011
    16,862,087     $ 1,686       (1,241,322 )   $ (53,702 )   $ 350,290     $ (328 )   $ 238,862     $ 418     $ 172     $ 537,398  
 
                                                                               
Balance at December 31, 2011
    16,862,087     $ 1,686       (1,967,123 )   $ (92,908 )   $ 351,053     $ (328 )   $ 242,391     $ 354     $ -     $ 502,248  
Comprehensive income:
                                                                               
Net income
                                                    14,823                       14,823  
Dividends declared on Preferred Stock of subsidiary
                                                    (242 )                     (242 )
Change in fair value:
                                                                               
Investments
                                                            (58 )             (58 )
Dividends declared on common stock
                                                    (8,279 )                     (8,279 )
Treasury shares activity - net
                    19,889       930       (2,747 )                                     (1,817 )
Balance at March 31, 2012
    16,862,087     $ 1,686       (1,947,234 )   $ (91,978 )   $ 348,306     $ (328 )   $ 248,693     $ 296     $ -     $ 506,675  
 
The Notes to Financial Statements are an integral part hereof.
 
 
(In Thousands)
 
 
 
Three Months Ended
March 31,
 
 
 
2012
   
2011
 
Operating Revenues
 
 
   
 
 
Electric
  $ 129,272     $ 154,570  
Natural gas
    55,850       75,482  
Total Operating Revenues
    185,122       230,052  
 
               
Operating Expenses
               
Operation:
               
Purchased electricity and fuel used in electric generation
    45,059       70,268  
Purchased natural gas
    24,614       41,798  
Other expenses of operation
    59,886       69,254  
Depreciation and amortization
    9,468       8,921  
Taxes, other than income tax
    13,491       13,235  
Total Operating Expenses
    152,518       203,476  
 
               
Operating Income
    32,604       26,576  
 
               
Other Income and Deductions
               
Interest on regulatory assets and other interest income
    2,146       1,866  
Regulatory adjustments for interest costs
    319       383  
Other - net
    (328 )     (563 )
Total Other Income
    2,137       1,686  
 
               
Interest Charges
               
Interest on long-term debt
    5,728       5,904  
Interest on regulatory liabilities and other interest
    1,527       1,470  
Total Interest Charges
    7,255       7,374  
 
               
Income Before Income Taxes
    27,486       20,888  
 
               
Income Taxes
    10,753       8,249  
 
               
Net Income
    16,733       12,639  
 
               
Dividends Declared on Cumulative Preferred Stock
    242       242  
 
               
Income Available for Common Stock
  $ 16,491     $ 12,397  
 
(In Thousands)
 
 
 
Three Months Ended
March 31,
 
 
 
2012
   
2011
 
Net Income
  $ 16,733     $ 12,639  
Other Comprehensive Income
    -       -  
Comprehensive Income
  $ 16,733     $ 12,639  
 
The Notes to Financial Statements are an integral part hereof.
 
 
(In Thousands)
 
 
 
Three Months Ended
March 31,
 
 
 
2012
   
2011
 
Operating Activities:
 
 
   
 
 
Net income
  $ 16,733     $ 12,639  
Adjustments to reconcile net income to net cash provided by operating activities:
               
Depreciation
    8,977       8,481  
Amortization
    491       440  
Deferred income taxes - net
    12,071       7,951  
Bad debt expense
    2,125       2,076  
Pension expense
    7,233       8,289  
OPEB expense
    1,996       1,999  
Regulatory liability - rate moderation
    (1,033 )     (3,451 )
Revenue decoupling mechanism recorded
    (950 )     5,280  
Regulatory asset amortization
    1,722       1,743  
Changes in operating assets and liabilities - net:
               
Accounts receivable, unbilled revenues and other receivables
    (7,437 )     (12,231 )
Fuel, materials and supplies
    4,648       5,117  
Special deposits and prepayments
    (3,203 )     (3,055 )
Income and other taxes
    (942 )     (1,954 )
Accounts payable
    (2,855 )     (4,425 )
Accrued interest
    504       399  
Customer advances
    (3,374 )     (7,726 )
Pension plan contribution
    (28,165 )     (8,157 )
Revenue decoupling mechanism collected
    (1,310 )     1,742  
Regulatory asset - storm deferral
    (3,042 )     -  
Regulatory asset - MGP site remediation
    951       559  
Regulatory asset - Temporary State Assessment
    (3,332 )     (2,272 )
Deferred natural gas and electric costs
    7,883       25,334  
Other - net
    1,478       4,174  
Net cash provided by operating activities
    11,169       42,952  
 
               
Investing Activities:
               
Additions to utility plant
    (25,783 )     (16,117 )
Other - net
    (777 )     (453 )
Net cash used in investing activities
    (26,560 )     (16,570 )
 
               
Financing Activities:
               
Redemption of long-term debt
    (36,000 )     -  
Proceeds from issuance of long-term debt
    48,000       -  
Borrowings of short-term debt - net
    57,500       -  
Dividends paid to parent - CH Energy Group
    -       (11,000 )
Dividends paid on cumulative Preferred Stock
    (242 )     (242 )
Other - net
    (602 )     (228 )
Net cash provided by (used in) financing activities
    68,656       (11,470 )
 
               
Net Change in Cash and Cash Equivalents
    53,265       14,912  
Cash and Cash Equivalents - Beginning of Period
    2,521       9,622  
Cash and Cash Equivalents - End of Period
  $ 55,786     $ 24,534  
 
               
Supplemental Disclosure of Cash Flow Information:
               
Interest paid
  $ 5,312     $ 5,912  
Federal and state income taxes paid   $ -     $ -  
Additions to plant included in liabilities
  $ 4,126     $ 2,165  
 
The Notes to Financial Statements are an integral part hereof.
 
 
(In Thousands)
 
 
 
March 31,
   
December 31,
   
March 31,
 
 
 
2012
   
2011
   
2011
 
ASSETS
 
 
   
 
   
 
 
Utility Plant
 
 
   
 
   
 
 
Electric
  $ 1,017,986     $ 1,008,394     $ 972,543  
Natural gas
    301,609       305,664       295,914  
Common
    151,086       147,286       143,398  
Gross Utility Plant
    1,470,681       1,461,344       1,411,855  
 
                       
Less: Accumulated depreciation
    390,307       388,784       378,038  
Net
    1,080,374       1,072,560       1,033,817  
 
                       
Construction work in progress
    66,518       58,847       50,588  
Net Utility Plant
    1,146,892       1,131,407       1,084,405  
 
                       
Non-Utility Property and Plant
    524       524       681  
Less: Accumulated depreciation
    -       -       35  
       Net Non-Utility Property and Plant
    524       524       646  
 
                       
Current Assets
                       
Cash and cash equivalents
    55,786       2,521       24,534  
Accounts receivable from customers - net of allowance for doubtful accounts of $5.4 million, $5.2 million and $5.3 million, respectively
    65,922       61,610       86,292  
Accrued unbilled utility revenues
    14,283       15,299       14,778  
Other receivables
    6,086       5,301       2,832  
Fuel, materials and supplies - at average cost
    16,389       21,037       14,910  
Regulatory assets
    49,683       49,526       36,809  
Fair value of derivative instruments
    -       320       68  
Special deposits and prepayments
    21,311       18,258       20,268  
Accumulated deferred income tax
    2,019       -       11,133  
Total Current Assets
    231,479       173,872       211,624  
 
                       
Deferred Charges and Other Assets
                       
Regulatory assets - pension plan
    151,737       159,020       134,199  
Regulatory assets - other
    119,559       114,980       86,069  
Fair value of derivative instruments
    -       931       -  
Unamortized debt expense
    5,035       4,535       4,831  
Other investments
    14,745       14,047       13,110  
Other
    2,218       3,065       2,449  
Total Deferred Charges and Other Assets
    293,294       296,578       240,658  
 
                       
Total Assets
  $ 1,672,189     $ 1,602,381     $ 1,537,333  
 
The Notes to Financial Statements are an integral part hereof.
 
 
CENTRAL HUDSON BALANCE SHEET (CONT'D) (UNAUDITED)
(In Thousands, except share amounts)
 
 
 
March 31,
   
December 31,
   
March 31,
 
 
 
2012
   
2011
   
2011
 
CAPITALIZATION AND LIABILITIES
 
 
   
 
   
 
 
Capitalization
 
 
   
 
   
 
 
Common Stock (30,000,000 shares authorized: $5 par value; 16,862,087 shares issued and outstanding)
  $ 84,311     $ 84,311     $ 84,311  
Paid-in capital
    199,980       199,980       199,980  
Retained earnings
    182,456       165,965       166,295  
Capital stock expense
    (4,961 )     (4,961 )     (4,961 )
Total Equity
    461,786       445,295       445,625  
 
                       
Cumulative Preferred Stock not subject to mandatory redemption
    21,027       21,027       21,027  
 
                       
Long-term debt
    465,950       417,950       417,901  
Total Capitalization
    948,763       884,272       884,553  
 
                       
Current Liabilities
                       
Current maturities of long-term debt
    -       36,000       36,000  
Notes payable
    59,000       1,500       -  
Accounts payable
    27,299       35,731       36,833  
Accrued interest
    6,686       6,183       6,366  
Dividends payable - Preferred Stock
    242       242       242  
Accrued vacation and payroll
    5,671       5,556       5,351  
Customer advances
    11,231       14,604       6,028  
Customer deposits
    7,170       6,582       7,514  
Regulatory liabilities
    8,959       11,161       17,379  
Fair value of derivative instruments
    22,118       19,791       9,626  
Accrued environmental remediation costs
    6,562       6,117       1,042  
Accrued income and other taxes
    1,564       1,274       699  
Accumulated deferred income tax
    -       156       -  
Other
    10,764       14,855       8,543  
Total Current Liabilities
    167,266       159,752       135,623  
 
                       
Deferred Credits and Other Liabilities
                       
Regulatory liabilities - OPEB
    8,974       6,988       8,930  
Regulatory liabilities - other
    112,122       108,887       113,621  
Operating reserves
    2,148       2,120       2,102  
Fair value of derivative instruments
    1,688       -       10,090  
Accrued environmental remediation costs
    9,407       9,726       1,693  
Accrued OPEB costs
    53,757       53,055       46,227  
Accrued pension costs
    95,896       121,911       96,524  
Tax reserve
    3,174       3,172       11,952  
Other
    19,564       17,955       17,080  
Total Deferred Credits and Other Liabilities
    306,730       323,814       308,219  
 
                       
Accumulated Deferred Income Tax
    249,430       234,543       208,938  
 
                       
Commitments and Contingencies
                       
 
                       
Total Capitalization and Liabilities
  $ 1,672,189     $ 1,602,381     $ 1,537,333  
 
The Notes to Financial Statements are an integral part hereof.
 
 
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