x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2012
|
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
|
CH Energy Group, Inc.
|
Yes þ
|
|
No o
|
Central Hudson Gas & Electric Corporation
|
Yes þ
|
|
No o
|
CH Energy Group, Inc.
|
Yes þ
|
|
No o
|
Central Hudson Gas & Electric Corporation
|
Yes þ
|
|
No o
|
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
|
CH Energy Group, Inc.
|
Yes o
|
|
No þ
|
Central Hudson Gas & Electric Corporation
|
Yes o
|
|
No þ
|
CH Energy Group, Inc.
|
PAGE
|
|
|
|
|
|
Three and Six Months Ended June 30, 2012 and 2011
|
1
|
|
|
|
|
|
|
|
Three and Six Months Ended June 30, 2012 and 2011
|
2
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2012 and 2011
|
3
|
|
|
|
|
|
|
|
June 30, 2012, December 31, 2011 and June 30, 2011
|
5
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2012 and 2011
|
7
|
Central Hudson Gas & Electric Corporation
|
|
|
|
|
|
|
Three and Six Months Ended June 30, 2012 and 2011
|
8
|
|
|
|
|
|
|
|
Three and Six Months Ended June 30, 2012 and 2011
|
8
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2012 and 2011
|
9
|
|
|
|
|
|
|
|
June 30, 2012, December 31, 2011 and June 30, 2011
|
10
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2012 and 2011
|
12
|
|
TABLE OF CONTENTS
|
|
|
|
PAGE
|
|
|
|
58
|
||
|
|
|
89
|
||
|
|
|
89
|
90
|
||
|
|
|
90
|
||
|
|
|
91
|
||
|
|
|
91
|
||
|
|
|
91
|
||
|
|
|
92
|
||
|
|
|
93
|
(In Thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
||||||||||||||
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
Operating Revenues
|
||||||||||||||||
Electric
|
$
|
115,429
|
$
|
114,235
|
$
|
244,701
|
$
|
268,805
|
||||||||
Natural gas
|
26,120
|
33,997
|
81,970
|
109,479
|
||||||||||||
Competitive business subsidiaries:
|
||||||||||||||||
Petroleum products
|
51,139
|
54,029
|
135,771
|
146,661
|
||||||||||||
Other
|
4,882
|
4,806
|
9,200
|
9,094
|
||||||||||||
Total Operating Revenues
|
197,570
|
207,067
|
471,642
|
534,039
|
||||||||||||
Operating Expenses
|
||||||||||||||||
Operation:
|
||||||||||||||||
Purchased electricity and fuel used in electric generation
|
37,364
|
37,795
|
82,423
|
108,063
|
||||||||||||
Purchased natural gas
|
7,490
|
15,290
|
32,104
|
57,088
|
||||||||||||
Purchased petroleum
|
45,424
|
48,228
|
115,729
|
123,994
|
||||||||||||
Other expenses of operation - regulated activities
|
58,836
|
56,747
|
118,722
|
125,980
|
||||||||||||
Other expenses of operation - competitive business subsidiaries
|
11,366
|
11,336
|
23,788
|
23,855
|
||||||||||||
Merger related costs
|
3,243
|
-
|
8,462
|
-
|
||||||||||||
Depreciation and amortization
|
10,543
|
10,101
|
21,167
|
20,186
|
||||||||||||
Taxes, other than income tax
|
11,954
|
11,626
|
25,596
|
24,927
|
||||||||||||
Total Operating Expenses
|
186,220
|
191,123
|
427,991
|
484,093
|
||||||||||||
Operating Income
|
11,350
|
15,944
|
43,651
|
49,946
|
||||||||||||
Other Income and Deductions
|
||||||||||||||||
Income from unconsolidated affiliates
|
50
|
155
|
102
|
619
|
||||||||||||
Interest on regulatory assets and other interest income
|
1,482
|
1,431
|
3,642
|
3,297
|
||||||||||||
Regulatory adjustments for interest costs
|
331
|
330
|
650
|
713
|
||||||||||||
Business development costs
|
(5
|
)
|
(263
|
)
|
(63
|
)
|
(498
|
)
|
||||||||
Other - net
|
(106
|
)
|
(321
|
)
|
(484
|
)
|
(890
|
)
|
||||||||
Total Other Income
|
1,752
|
1,332
|
3,847
|
3,241
|
||||||||||||
Interest Charges
|
||||||||||||||||
Interest on long-term debt
|
6,219
|
6,730
|
12,437
|
13,470
|
||||||||||||
Interest on regulatory liabilities and other interest
|
1,703
|
1,534
|
3,287
|
3,015
|
||||||||||||
Total Interest Charges
|
7,922
|
8,264
|
15,724
|
16,485
|
||||||||||||
|
||||||||||||||||
Income before income taxes, non-controlling interest and preferred dividends of subsidiary
|
5,180
|
9,012
|
31,774
|
36,702
|
||||||||||||
Income Taxes
|
3,026
|
2,905
|
14,797
|
13,520
|
||||||||||||
Net Income from Continuing Operations
|
2,154
|
6,107
|
16,977
|
23,182
|
||||||||||||
|
||||||||||||||||
Discontinued Operations
|
||||||||||||||||
Income from discontinued operations before tax
|
-
|
220
|
-
|
821
|
||||||||||||
Loss from sale of discontinued operations
|
-
|
(92
|
)
|
-
|
(543
|
)
|
||||||||||
Income tax expense from discontinued operations
|
-
|
38
|
-
|
73
|
||||||||||||
Net Income from Discontinued Operations
|
-
|
90
|
-
|
205
|
||||||||||||
|
||||||||||||||||
Net Income
|
2,154
|
6,197
|
16,977
|
23,387
|
||||||||||||
|
||||||||||||||||
Net Income attributable to non-controlling interest:
|
||||||||||||||||
Dividends declared on Preferred Stock of subsidiary
|
176
|
242
|
418
|
485
|
||||||||||||
Preferred Stock Redemption Premium
|
342
|
-
|
342
|
-
|
||||||||||||
Net Income Attributable to CH Energy Group
|
1,636
|
5,955
|
16,217
|
22,902
|
||||||||||||
|
||||||||||||||||
Dividends declared on Common Stock
|
8,293
|
8,331
|
16,572
|
16,758
|
||||||||||||
Change in Retained Earnings
|
$
|
(6,657
|
)
|
$
|
(2,376
|
)
|
$
|
(355
|
)
|
$
|
6,144
|
CH ENERGY GROUP CONSOLIDATED STATEMENT OF INCOME (CONT'D) (UNAUDITED)
|
|||||||||||||
(In Thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
||||||||||||||
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
Common Stock:
|
||||||||||||||||
Average shares outstanding - Basic
|
14,906
|
15,476
|
14,894
|
15,560
|
||||||||||||
Average shares outstanding - Diluted
|
15,128
|
15,674
|
15,116
|
15,758
|
||||||||||||
|
||||||||||||||||
Income from continuing operations attributable to CH Energy Group common shareholders:
|
||||||||||||||||
Earnings per share - Basic
|
$
|
0.11
|
$
|
0.38
|
$
|
1.09
|
$
|
1.46
|
||||||||
Earnings per share - Diluted
|
$
|
0.10
|
$
|
0.37
|
$
|
1.07
|
$
|
1.44
|
||||||||
|
||||||||||||||||
Income from discontinued operations attributable to CH Energy Group common shareholders:
|
||||||||||||||||
Earnings per share - Basic
|
$
|
-
|
$
|
0.01
|
$
|
-
|
$
|
0.01
|
||||||||
Earnings per share - Diluted
|
$
|
-
|
$
|
0.01
|
$
|
-
|
$
|
0.02
|
||||||||
|
||||||||||||||||
Amounts attributable to CH Energy Group common shareholders:
|
||||||||||||||||
Earnings per share - Basic
|
$
|
0.11
|
$
|
0.38
|
$
|
1.09
|
$
|
1.47
|
||||||||
Earnings per share - Diluted
|
$
|
0.10
|
$
|
0.38
|
$
|
1.07
|
$
|
1.46
|
||||||||
Dividends Declared per Share
|
$
|
0.555
|
$
|
0.540
|
$
|
1.11
|
$
|
1.08
|
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
||||||||||||||
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
Net Income
|
$
|
2,154
|
$
|
6,197
|
$
|
16,977
|
$
|
23,387
|
||||||||
|
||||||||||||||||
Other Comprehensive Loss:
|
||||||||||||||||
Net unrealized losses on investments held by equity method investees - net of tax of $0 and $39 in 2012 and $0 and $27 in 2011, respectively
|
-
|
-
|
(58
|
)
|
(41
|
)
|
||||||||||
|
||||||||||||||||
Other comprehensive loss
|
-
|
-
|
(58
|
)
|
(41
|
)
|
||||||||||
|
||||||||||||||||
Comprehensive Income
|
2,154
|
6,197
|
16,919
|
23,346
|
||||||||||||
|
||||||||||||||||
Comprehensive income attributable to non-controlling interest
|
518
|
242
|
760
|
485
|
||||||||||||
|
||||||||||||||||
Comprehensive income attributable to CH Energy Group
|
$
|
1,636
|
$
|
5,955
|
$
|
16,159
|
$
|
22,861
|
|
Six Months Ended
June 30,
|
|||||||
|
2012
|
2011
|
||||||
Operating Activities:
|
||||||||
Net income
|
$
|
16,977
|
$
|
23,387
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation
|
18,887
|
19,271
|
||||||
Amortization
|
2,280
|
2,098
|
||||||
Deferred income taxes - net
|
16,282
|
12,575
|
||||||
Bad debt expense
|
3,802
|
4,093
|
||||||
Undistributed equity in earnings of unconsolidated affiliates
|
(102
|
)
|
(619
|
)
|
||||
Pension expense
|
12,987
|
14,866
|
||||||
Other post-employment benefits ("OPEB") expense
|
3,584
|
3,586
|
||||||
Regulatory liability - rate moderation
|
(1,107
|
)
|
(6,166
|
)
|
||||
Revenue decoupling mechanism recorded
|
(2,829
|
)
|
5,030
|
|||||
Regulatory asset amortization
|
2,865
|
2,882
|
||||||
Gain on sale of assets
|
(71
|
)
|
543
|
|||||
Changes in operating assets and liabilities - net of business acquisitions:
|
||||||||
Accounts receivable, unbilled revenues and other receivables
|
12,884
|
6,433
|
||||||
Fuel, materials and supplies
|
6,316
|
4,246
|
||||||
Special deposits and prepayments
|
3,306
|
5,334
|
||||||
Income and other taxes
|
310
|
(1,921
|
)
|
|||||
Accounts payable
|
2,056
|
(13,982
|
)
|
|||||
Accrued interest
|
(503
|
)
|
982
|
|||||
Customer advances
|
8
|
(6,219
|
)
|
|||||
Pension plan contribution
|
(28,329
|
)
|
(32,328
|
)
|
||||
OPEB contribution
|
(3,269
|
)
|
(1,184
|
)
|
||||
Revenue decoupling mechanism (refunded) collected
|
(945
|
)
|
2,541
|
|||||
Regulatory asset - storm deferral
|
(942
|
)
|
-
|
|||||
Regulatory asset - manufactured gas plant ("MGP") site remediation
|
1,705
|
2,937
|
||||||
Regulatory asset - Temporary State Assessment
|
483
|
2,452
|
||||||
Merger related transaction costs paid
|
(4,589
|
)
|
-
|
|||||
Deferred natural gas and electric costs
|
255
|
23,797
|
||||||
Other - net
|
8,912
|
893
|
||||||
Net cash provided by operating activities
|
71,213
|
75,527
|
||||||
Investing Activities:
|
||||||||
Proceeds from sale of assets
|
103
|
6,834
|
||||||
Additions to utility and other property and plant
|
(54,012
|
)
|
(39,509
|
)
|
||||
Acquisitions made by competitive business subsidiaries
|
-
|
(1,961
|
)
|
|||||
Other - net
|
(3,014
|
)
|
(1,765
|
)
|
||||
Net cash used in investing activities
|
(56,923
|
)
|
(36,401
|
)
|
||||
Financing Activities:
|
||||||||
Redemption of long-term debt
|
(36,495
|
)
|
(463
|
)
|
||||
Proceeds from issuance of long-term debt
|
48,000
|
-
|
||||||
Borrowings of short-term debt - net
|
3,500
|
12,000
|
||||||
Dividends paid on Common Stock
|
(16,548
|
)
|
(16,958
|
)
|
||||
Redemption of preferred Stock
|
(12,180
|
)
|
-
|
|||||
Dividends paid on Preferred Stock of subsidiary
|
(661
|
)
|
(485
|
)
|
||||
Shares repurchased
|
(2,993
|
)
|
(18,612
|
)
|
||||
Other - net
|
(602
|
)
|
(233
|
)
|
||||
Net cash used in financing activities
|
(17,979
|
)
|
(24,751
|
)
|
||||
Cash Included in Net Current Assets Held for Sale
|
-
|
(1,602
|
)
|
|||||
Net Change in Cash and Cash Equivalents
|
(3,689
|
)
|
12,773
|
|||||
Cash and Cash Equivalents at Beginning of Period
|
15,281
|
29,420
|
||||||
Cash and Cash Equivalents at End of Period
|
$
|
11,592
|
$
|
42,193
|
CH ENERGY GROUP CONSOLIDATED STATEMENT OF CASH FLOWS (CONT'D)
|
||||||
(In Thousands)
|
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
|||||||
|
2012
|
2011
|
||||||
Supplemental Disclosure of Cash Flow Information:
|
||||||||
Interest paid
|
$
|
13,168
|
$
|
13,086
|
||||
Federal and state income taxes paid
|
$
|
118
|
$
|
332
|
||||
Additions to plant included in liabilities
|
$
|
4,854
|
$
|
3,186
|
||||
Merger related transaction costs in liabilities
|
$
|
3,873
|
$
|
-
|
|
June 30,
|
December 31,
|
June 30,
|
|||||||||
|
2012
|
2011
|
2011
|
|||||||||
ASSETS
|
||||||||||||
Utility Plant
|
||||||||||||
Electric
|
$
|
1,036,287
|
$
|
1,008,394
|
$
|
981,711
|
||||||
Natural gas
|
306,888
|
305,664
|
298,998
|
|||||||||
Common
|
153,542
|
147,286
|
141,480
|
|||||||||
Gross Utility Plant
|
1,496,717
|
1,461,344
|
1,422,189
|
|||||||||
|
||||||||||||
Less: Accumulated depreciation
|
395,425
|
388,784
|
380,191
|
|||||||||
Net
|
1,101,292
|
1,072,560
|
1,041,998
|
|||||||||
|
||||||||||||
Construction work in progress
|
63,841
|
58,847
|
54,693
|
|||||||||
Net Utility Plant
|
1,165,133
|
1,131,407
|
1,096,691
|
|||||||||
|
||||||||||||
Non-Utility Property & Plant
|
||||||||||||
Griffith non-utility property & plant
|
32,285
|
31,669
|
30,363
|
|||||||||
Other non-utility property & plant
|
524
|
524
|
10,532
|
|||||||||
Gross Non-Utility Property & Plant
|
32,809
|
32,193
|
40,895
|
|||||||||
|
||||||||||||
Less: Accumulated depreciation - Griffith
|
22,548
|
22,006
|
21,222
|
|||||||||
Less: Accumulated depreciation - other
|
-
|
-
|
1,446
|
|||||||||
Net Non-Utility Property & Plant
|
10,261
|
10,187
|
18,227
|
|||||||||
|
||||||||||||
Current Assets
|
||||||||||||
Cash and cash equivalents
|
11,592
|
15,281
|
42,193
|
|||||||||
Accounts receivable from customers - net of allowance for doubtful accounts of $7.1 million, $7.0 million and $6.8 million, respectively
|
77,852
|
90,937
|
90,991
|
|||||||||
Accrued unbilled utility revenues
|
10,524
|
15,299
|
10,130
|
|||||||||
Other receivables
|
7,802
|
9,512
|
6,982
|
|||||||||
Fuel, materials and supplies
|
18,798
|
25,114
|
20,462
|
|||||||||
Regulatory assets
|
43,787
|
49,526
|
35,265
|
|||||||||
Income tax receivable
|
-
|
432
|
2,745
|
|||||||||
Fair value of derivative instruments
|
896
|
349
|
62
|
|||||||||
Special deposits and prepayments
|
18,063
|
21,795
|
17,293
|
|||||||||
Assets held for sale
|
-
|
-
|
47,512
|
|||||||||
Accumulated deferred income tax
|
21,840
|
5,895
|
17,781
|
|||||||||
Total Current Assets
|
211,154
|
234,140
|
291,416
|
|||||||||
|
||||||||||||
Deferred Charges and Other Assets
|
||||||||||||
Regulatory assets - pension plan
|
145,854
|
159,020
|
127,401
|
|||||||||
Regulatory assets - other
|
111,306
|
114,980
|
89,443
|
|||||||||
Fair value of derivative instruments
|
-
|
931
|
-
|
|||||||||
Goodwill
|
37,752
|
37,512
|
36,455
|
|||||||||
Other intangible assets - net
|
11,940
|
13,173
|
13,094
|
|||||||||
Unamortized debt expense
|
4,951
|
4,535
|
4,735
|
|||||||||
Investments in unconsolidated affiliates
|
2,590
|
2,777
|
6,684
|
|||||||||
Other investments
|
17,327
|
14,461
|
14,802
|
|||||||||
Other
|
5,148
|
6,989
|
5,364
|
|||||||||
Total Deferred Charges and Other Assets
|
336,868
|
354,378
|
297,978
|
|||||||||
Total Assets
|
$
|
1,723,416
|
$
|
1,730,112
|
$
|
1,704,312
|
CH ENERGY GROUP CONSOLIDATED BALANCE SHEET (CONT'D) (UNAUDITED)
|
|||||||||
(In Thousands, except share amounts)
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
December 31,
|
June 30,
|
|||||||||
|
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) 14,941,076 shares, 14,894,964 shares and 15,428,451 shares outstanding, respectively
|
$
|
1,686
|
$
|
1,686
|
$
|
1,686
|
||||||
Paid-in capital
|
348,899
|
351,053
|
350,405
|
|||||||||
Retained earnings
|
242,036
|
242,391
|
236,486
|
|||||||||
Treasury stock - 1,921,011 shares, 1,967,123 shares and 1,433,636 shares, respectively
|
(90,739
|
)
|
(92,908
|
)
|
(63,781
|
)
|
||||||
Accumulated other comprehensive income
|
296
|
354
|
418
|
|||||||||
Capital stock expense
|
(166
|
)
|
(328
|
)
|
(328
|
)
|
||||||
Total Equity
|
502,012
|
502,248
|
524,886
|
|||||||||
Preferred Stock of subsidiary
|
9,027
|
21,027
|
21,027
|
|||||||||
Long-term debt
|
493,473
|
446,003
|
466,466
|
|||||||||
Total Capitalization
|
1,004,512
|
969,278
|
1,012,379
|
|||||||||
Current Liabilities
|
||||||||||||
Current maturities of long-term debt
|
1,041
|
37,006
|
36,973
|
|||||||||
Notes payable
|
10,000
|
6,500
|
12,000
|
|||||||||
Accounts payable
|
37,071
|
43,904
|
41,450
|
|||||||||
Accrued interest
|
5,830
|
6,333
|
7,380
|
|||||||||
Dividends payable
|
8,293
|
8,511
|
8,574
|
|||||||||
Accrued vacation and payroll
|
7,169
|
6,702
|
6,660
|
|||||||||
Customer advances
|
22,535
|
22,527
|
13,090
|
|||||||||
Customer deposits
|
7,281
|
6,647
|
6,926
|
|||||||||
Regulatory liabilities
|
8,182
|
11,161
|
13,456
|
|||||||||
Fair value of derivative instruments
|
11,342
|
19,791
|
11,096
|
|||||||||
Accrued environmental remediation costs
|
8,525
|
6,652
|
3,687
|
|||||||||
Accrued income and other taxes
|
590
|
-
|
-
|
|||||||||
Deferred revenues
|
3,839
|
4,801
|
3,625
|
|||||||||
Liabilities held for sale
|
-
|
-
|
474
|
|||||||||
Other
|
16,134
|
17,905
|
13,339
|
|||||||||
Total Current Liabilities
|
147,832
|
198,440
|
178,730
|
|||||||||
Deferred Credits and Other Liabilities
|
||||||||||||
Regulatory liabilities - OPEB
|
10,571
|
6,988
|
10,494
|
|||||||||
Regulatory liabilities - other
|
107,168
|
108,887
|
110,267
|
|||||||||
Operating reserves
|
3,581
|
3,383
|
2,689
|
|||||||||
Fair value of derivative instruments
|
973
|
-
|
5,259
|
|||||||||
Accrued environmental remediation costs
|
8,452
|
11,036
|
12,045
|
|||||||||
Accrued OPEB costs
|
51,425
|
53,055
|
45,698
|
|||||||||
Accrued pension costs
|
97,883
|
121,911
|
74,438
|
|||||||||
Tax reserve
|
3,178
|
3,172
|
10,934
|
|||||||||
Other
|
17,611
|
18,802
|
16,851
|
|||||||||
Total Deferred Credits and Other Liabilities
|
300,842
|
327,234
|
288,675
|
|||||||||
Accumulated Deferred Income Tax
|
270,230
|
235,160
|
224,528
|
|||||||||
Commitments and Contingencies
|
||||||||||||
Total Capitalization and Liabilities
|
$
|
1,723,416
|
$
|
1,730,112
|
$
|
1,704,312
|
|
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
|
23,387
|
|
23,387
|
|||||||||||||||||||||||||||||||||||||
Dividends declared on Preferred Stock of subsidiary
|
(485
|
)
|
(485
|
)
|
||||||||||||||||||||||||||||||||||||
Change in fair value:
|
||||||||||||||||||||||||||||||||||||||||
Investments
|
(41
|
)
|
(41
|
)
|
||||||||||||||||||||||||||||||||||||
Reclassification to liabilities held for sale
|
|
(172
|
)
|
(172
|
)
|
|||||||||||||||||||||||||||||||||||
Dividends declared on common stock
|
(16,758
|
)
|
(16,758
|
)
|
||||||||||||||||||||||||||||||||||||
Treasury shares activity - net
|
(370,811
|
)
|
(18,894
|
)
|
45
|
(18,849
|
)
|
|||||||||||||||||||||||||||||||||
Balance at June 30, 2011
|
16,862,087
|
$
|
1,686
|
(1,433,636
|
)
|
$
|
(63,781
|
)
|
$
|
350,405
|
$
|
(328
|
)
|
$
|
236,486
|
$
|
418
|
$
|
-
|
$
|
524,886
|
|||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
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
|
16,977
|
16,977
|
||||||||||||||||||||||||||||||||||||||
Preferred Stock Redemption
|
162
|
(342
|
)
|
(180
|
)
|
|||||||||||||||||||||||||||||||||||
Dividends declared on Preferred Stock of subsidiary
|
(418
|
)
|
(418
|
)
|
||||||||||||||||||||||||||||||||||||
Change in fair value:
|
||||||||||||||||||||||||||||||||||||||||
Investments
|
(58
|
)
|
(58
|
)
|
||||||||||||||||||||||||||||||||||||
Dividends declared on common stock
|
(16,572
|
)
|
(16,572
|
)
|
||||||||||||||||||||||||||||||||||||
Treasury shares activity - net
|
46,112
|
2,169
|
(2,154
|
)
|
15
|
|||||||||||||||||||||||||||||||||||
Balance at June 30, 2012
|
16,862,087
|
$
|
1,686
|
(1,921,011
|
)
|
$
|
(90,739
|
)
|
$
|
348,899
|
$
|
(166
|
)
|
$
|
242,036
|
$
|
296
|
$
|
-
|
$
|
502,012
|
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
||||||||||||||
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
Operating Revenues
|
||||||||||||||||
Electric
|
$
|
115,429
|
$
|
114,235
|
$
|
244,701
|
$
|
268,805
|
||||||||
Natural gas
|
26,120
|
33,997
|
81,970
|
109,479
|
||||||||||||
Total Operating Revenues
|
141,549
|
148,232
|
326,671
|
378,284
|
||||||||||||
|
||||||||||||||||
Operating Expenses
|
||||||||||||||||
Operation:
|
||||||||||||||||
Purchased electricity and fuel used in electric generation
|
37,364
|
37,795
|
82,423
|
108,063
|
||||||||||||
Purchased natural gas
|
7,490
|
15,290
|
32,104
|
57,088
|
||||||||||||
Other expenses of operation
|
58,836
|
56,747
|
118,722
|
125,980
|
||||||||||||
Depreciation and amortization
|
9,402
|
8,960
|
18,870
|
17,881
|
||||||||||||
Taxes, other than income tax
|
11,842
|
11,403
|
25,333
|
24,659
|
||||||||||||
Total Operating Expenses
|
124,934
|
130,195
|
277,452
|
333,671
|
||||||||||||
|
||||||||||||||||
Operating Income
|
16,615
|
18,037
|
49,219
|
44,613
|
||||||||||||
|
||||||||||||||||
Other Income and Deductions
|
||||||||||||||||
Interest on regulatory assets and other interest income
|
1,470
|
1,421
|
3,616
|
3,287
|
||||||||||||
Regulatory adjustments for interest costs
|
331
|
330
|
650
|
713
|
||||||||||||
Other - net
|
(56
|
)
|
(250
|
)
|
(384
|
)
|
(813
|
)
|
||||||||
Total Other Income
|
1,745
|
1,501
|
3,882
|
3,187
|
||||||||||||
|
||||||||||||||||
Interest Charges
|
||||||||||||||||
Interest on long-term debt
|
5,730
|
5,892
|
11,458
|
11,797
|
||||||||||||
Interest on regulatory liabilities and other interest
|
1,705
|
1,520
|
3,232
|
2,988
|
||||||||||||
Total Interest Charges
|
7,435
|
7,412
|
14,690
|
14,785
|
||||||||||||
|
||||||||||||||||
Income Before Income Taxes
|
10,925
|
12,126
|
38,411
|
33,015
|
||||||||||||
|
||||||||||||||||
Income Taxes
|
4,254
|
4,755
|
15,007
|
13,004
|
||||||||||||
|
||||||||||||||||
Net Income
|
6,671
|
7,371
|
23,404
|
20,011
|
||||||||||||
|
||||||||||||||||
Preferred Stock Redemption Premium
|
342
|
-
|
342
|
-
|
||||||||||||
Dividends Declared on Cumulative Preferred Stock
|
176
|
242
|
418
|
485
|
||||||||||||
|
||||||||||||||||
Income Available for Common Stock
|
$
|
6,153
|
$
|
7,129
|
$
|
22,644
|
$
|
19,526
|
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
||||||||||
|
2012
|
2011
|
2012
|
2011
|
||||||||
Net Income
|
$
|
6,671
|
$
|
7,371
|
$
|
23,404
|
$
|
20,011
|
||||
Other Comprehensive Income
|
-
|
-
|
-
|
-
|
||||||||
Comprehensive Income
|
$
|
6,671
|
$
|
7,371
|
$
|
23,404
|
$
|
20,011
|
|
Six Months Ended
June 30,
|
|||||||
|
2012
|
2011
|
||||||
Operating Activities:
|
||||||||
Net income
|
$
|
23,404
|
$
|
20,011
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation
|
17,848
|
16,977
|
||||||
Amortization
|
1,022
|
904
|
||||||
Deferred income taxes - net
|
16,574
|
12,472
|
||||||
Bad debt expense
|
3,332
|
3,346
|
||||||
Pension expense
|
12,987
|
14,866
|
||||||
OPEB expense
|
3,584
|
3,586
|
||||||
Regulatory liability - rate moderation
|
(1,107
|
)
|
(6,166
|
)
|
||||
Revenue decoupling mechanism recorded
|
(2,829
|
)
|
5,030
|
|||||
Regulatory asset amortization
|
2,865
|
2,882
|
||||||
Changes in operating assets and liabilities - net:
|
||||||||
Accounts receivable, unbilled revenues and other receivables
|
7,320
|
10,366
|
||||||
Fuel, materials and supplies
|
4,586
|
1,894
|
||||||
Special deposits and prepayments
|
4,357
|
4,090
|
||||||
Income and other taxes
|
(486
|
)
|
(1,179
|
)
|
||||
Accounts payable
|
(2,114
|
)
|
(5,808
|
)
|
||||
Accrued interest
|
(503
|
)
|
980
|
|||||
Customer advances
|
(357
|
)
|
(6,064
|
)
|
||||
Pension plan contribution
|
(28,329
|
)
|
(32,328
|
)
|
||||
OPEB contribution
|
(3,269
|
)
|
(1,184
|
)
|
||||
Revenue decoupling mechanism collected
|
(945
|
)
|
2,541
|
|||||
Regulatory asset - storm deferral
|
(942
|
)
|
-
|
|||||
Regulatory asset - MGP site remediation
|
1,705
|
2,937
|
||||||
Regulatory asset - Temporary State Assessment
|
483
|
2,452
|
||||||
Deferred natural gas and electric costs
|
255
|
23,797
|
||||||
Other - net
|
5,714
|
5,679
|
||||||
Net cash provided by operating activities
|
65,155
|
82,081
|
||||||
|
||||||||
Investing Activities:
|
||||||||
Additions to utility plant
|
(52,876
|
)
|
(35,734
|
)
|
||||
Other - net
|
(3,173
|
)
|
(2,255
|
)
|
||||
Net cash used in investing activities
|
(56,049
|
)
|
(37,989
|
)
|
||||
|
||||||||
Financing Activities:
|
||||||||
Redemption of long-term debt
|
(36,000
|
)
|
-
|
|||||
Proceeds from issuance of long-term debt
|
48,000
|
-
|
||||||
Borrowings of short-term debt - net
|
5,500
|
-
|
||||||
Redemption of preferred stock
|
(12,180
|
)
|
-
|
|||||
Dividends paid to parent - CH Energy Group
|
(13,000
|
)
|
(22,000
|
)
|
||||
Dividends paid on cumulative Preferred Stock
|
(661
|
)
|
(485
|
)
|
||||
Other - net
|
(620
|
)
|
(233
|
)
|
||||
Net cash used in financing activities
|
(8,961
|
)
|
(22,718
|
)
|
||||
|
||||||||
Net Change in Cash and Cash Equivalents
|
145
|
21,374
|
||||||
Cash and Cash Equivalents - Beginning of Period
|
2,521
|
9,622
|
||||||
Cash and Cash Equivalents - End of Period
|
$
|
2,666
|
$
|
30,996
|
||||
|
||||||||
Supplemental Disclosure of Cash Flow Information:
|
||||||||
Interest paid
|
$
|
12,107
|
$
|
11,376
|
||||
Federal and state income taxes paid
|
$
|
-
|
$
|
-
|
||||
Additions to plant included in liabilities
|
$
|
4,854
|
$
|
2,956
|
|
June 30,
|
December 31,
|
June 30,
|
|||||||||
|
2012
|
2011
|
2011
|
|||||||||
ASSETS
|
||||||||||||
Utility Plant
|
||||||||||||
Electric
|
$
|
1,036,287
|
$
|
1,008,394
|
$
|
981,711
|
||||||
Natural gas
|
306,888
|
305,664
|
298,998
|
|||||||||
Common
|
153,542
|
147,286
|
141,480
|
|||||||||
Gross Utility Plant
|
1,496,717
|
1,461,344
|
1,422,189
|
|||||||||
|
||||||||||||
Less: Accumulated depreciation
|
395,425
|
388,784
|
380,191
|
|||||||||
Net
|
1,101,292
|
1,072,560
|
1,041,998
|
|||||||||
|
||||||||||||
Construction work in progress
|
63,841
|
58,847
|
54,693
|
|||||||||
Net Utility Plant
|
1,165,133
|
1,131,407
|
1,096,691
|
|||||||||
|
||||||||||||
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
|
2,666
|
2,521
|
30,996
|
|||||||||
Accounts receivable from customers - net of allowance for doubtful accounts of $5.4 million, $5.2 million and $5.2 million, respectively
|
53,796
|
61,610
|
61,434
|
|||||||||
Accrued unbilled utility revenues
|
10,524
|
15,299
|
10,130
|
|||||||||
Other receivables
|
4,354
|
5,301
|
4,317
|
|||||||||
Fuel, materials and supplies - at average cost
|
16,451
|
21,037
|
18,133
|
|||||||||
Regulatory assets
|
43,787
|
49,526
|
35,265
|
|||||||||
Fair value of derivative instruments
|
896
|
320
|
62
|
|||||||||
Special deposits and prepayments
|
13,750
|
18,258
|
13,146
|
|||||||||
Accumulated deferred income tax
|
15,503
|
-
|
11,575
|
|||||||||
Total Current Assets
|
161,727
|
173,872
|
185,058
|
|||||||||
|
||||||||||||
Deferred Charges and Other Assets
|
||||||||||||
Regulatory assets - pension plan
|
145,854
|
159,020
|
127,401
|
|||||||||
Regulatory assets - other
|
111,306
|
114,980
|
89,443
|
|||||||||
Fair value of derivative instruments
|
-
|
931
|
-
|
|||||||||
Unamortized debt expense
|
4,951
|
4,535
|
4,735
|
|||||||||
Other investments
|
16,870
|
14,047
|
14,372
|
|||||||||
Other
|
1,798
|
3,065
|
1,720
|
|||||||||
Total Deferred Charges and Other Assets
|
280,779
|
296,578
|
237,671
|
|||||||||
|
||||||||||||
Total Assets
|
$
|
1,608,163
|
$
|
1,602,381
|
$
|
1,520,066
|
CENTRAL HUDSON BALANCE SHEET (CONT'D) (UNAUDITED)
|
|||||||||
(In Thousands, except share amounts)
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
December 31,
|
June 30,
|
|||||||||
|
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
|
175,609
|
165,965
|
162,424
|
|||||||||
Capital stock expense
|
(4,799
|
)
|
(4,961
|
)
|
(4,961
|
)
|
||||||
Total Equity
|
455,101
|
445,295
|
441,754
|
|||||||||
|
||||||||||||
Cumulative Preferred Stock not subject to mandatory redemption
|
9,027
|
21,027
|
21,027
|
|||||||||
|
||||||||||||
Long-term debt
|
465,950
|
417,950
|
417,902
|
|||||||||
Total Capitalization
|
930,078
|
884,272
|
880,683
|
|||||||||
|
||||||||||||
Current Liabilities
|
||||||||||||
Current maturities of long-term debt
|
-
|
36,000
|
36,000
|
|||||||||
Notes payable
|
7,000
|
1,500
|
-
|
|||||||||
Accounts payable
|
29,317
|
35,731
|
36,276
|
|||||||||
Accrued interest
|
5,680
|
6,183
|
6,948
|
|||||||||
Dividends payable - Preferred Stock
|
-
|
242
|
242
|
|||||||||
Accrued vacation and payroll
|
5,801
|
5,556
|
5,318
|
|||||||||
Customer advances
|
14,247
|
14,604
|
7,689
|
|||||||||
Customer deposits
|
7,220
|
6,582
|
6,859
|
|||||||||
Regulatory liabilities
|
8,182
|
11,161
|
13,456
|
|||||||||
Fair value of derivative instruments
|
11,342
|
19,791
|
11,096
|
|||||||||
Accrued environmental remediation costs
|
8,081
|
6,117
|
2,387
|
|||||||||
Accrued income and other taxes
|
1,500
|
1,274
|
912
|
|||||||||
Accumulated deferred income tax
|
-
|
156
|
-
|
|||||||||
Other
|
12,353
|
14,855
|
10,139
|
|||||||||
Total Current Liabilities
|
110,723
|
159,752
|
137,322
|
|||||||||
|
||||||||||||
Deferred Credits and Other Liabilities
|
||||||||||||
Regulatory liabilities - OPEB
|
10,571
|
6,988
|
10,494
|
|||||||||
Regulatory liabilities - other
|
107,168
|
108,887
|
110,267
|
|||||||||
Operating reserves
|
2,518
|
2,120
|
1,841
|
|||||||||
Fair value of derivative instruments
|
973
|
-
|
5,259
|
|||||||||
Accrued environmental remediation costs
|
7,320
|
9,726
|
10,784
|
|||||||||
Accrued OPEB costs
|
51,425
|
53,055
|
45,698
|
|||||||||
Accrued pension costs
|
97,883
|
121,911
|
74,438
|
|||||||||
Tax reserve
|
3,178
|
3,172
|
10,934
|
|||||||||
Other
|
16,668
|
17,955
|
15,900
|
|||||||||
Total Deferred Credits and Other Liabilities
|
297,704
|
323,814
|
285,615
|
|||||||||
|
||||||||||||
Accumulated Deferred Income Tax
|
269,658
|
234,543
|
216,446
|
|||||||||
|
||||||||||||
Commitments and Contingencies
|
||||||||||||
|
||||||||||||
Total Capitalization and Liabilities
|
$
|
1,608,163
|
$
|
1,602,381
|
$
|
1,520,066
|
|
Central Hudson 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)
|
Total Equity
|
|||||||||||||||||||||||||||
Balance at December 31, 2010
|
16,862,087
|
$
|
84,311
|
-
|
$
|
-
|
$
|
199,980
|
$
|
(4,961
|
)
|
$
|
164,898
|
$
|
-
|
$
|
444,228
|
|||||||||||||||||||
Net income
|
20,011
|
20,011
|
||||||||||||||||||||||||||||||||||
Dividends declared:
|
||||||||||||||||||||||||||||||||||||
On cumulative Preferred Stock
|
(485
|
)
|
(485
|
)
|
||||||||||||||||||||||||||||||||
On Common Stock to parent -
CH Energy Group
|
(22,000
|
)
|
(22,000
|
)
|
||||||||||||||||||||||||||||||||
Balance at June 30, 2011
|
16,862,087
|
$
|
84,311
|
-
|
$
|
-
|
$
|
199,980
|
$
|
(4,961
|
)
|
$
|
162,424
|
$
|
-
|
$
|
441,754
|
|||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
Balance at December 31, 2011
|
16,862,087
|
$
|
84,311
|
-
|
$
|
-
|
$
|
199,980
|
$
|
(4,961
|
)
|
$
|
165,965
|
$
|
-
|
$
|
445,295
|
|||||||||||||||||||
Net income
|
23,404
|
23,404
|
||||||||||||||||||||||||||||||||||
Preferred Stock Redemption
|
162
|
(342
|
)
|
(180
|
)
|
|||||||||||||||||||||||||||||||
Dividends declared:
|
||||||||||||||||||||||||||||||||||||
On cumulative Preferred Stock
|
(418
|
)
|
(418
|
)
|
||||||||||||||||||||||||||||||||
On Common Stock to parent -
CH Energy Group
|
(13,000
|
)
|
(13,000
|
)
|
||||||||||||||||||||||||||||||||
Balance at June 30, 2012
|
16,862,087
|
$
|
84,311
|
-
|
$
|
-
|
$
|
199,980
|
$
|
(4,799
|
)
|
$
|
175,609
|
$
|
-
|
$
|
455,101
|
Fuel, Materials & Supplies
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following is a summary of CH Energy Group's and Central Hudson's inventories (In Thousands):
|
|
CH Energy Group
|
Central Hudson
|
|||||||||||||||||
June 30,
|
December 31,
|
June 30,
|
June 30,
|
December 31,
|
June 30,
|
||||||||||||||
2012
|
2011
|
2011
|
2012
|
2011
|
2011
|
||||||||||||||
Natural gas
|
$
|
7,220
|
$
|
11,711
|
$
|
8,436
|
$
|
7,220
|
$
|
11,711
|
$
|
8,436
|
|||||||
Petroleum products and propane
|
1,267
|
3,422
|
1,495
|
-
|
494
|
519
|
|||||||||||||
Fuel used in electric generation
|
284
|
285
|
263
|
284
|
285
|
263
|
|||||||||||||
Materials and supplies
|
10,027
|
9,696
|
10,268
|
8,947
|
8,547
|
8,915
|
|||||||||||||
Total
|
$
|
18,798
|
$
|
25,114
|
$
|
20,462
|
$
|
16,451
|
$
|
21,037
|
$
|
18,133
|
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||
|
June 30,
|
June 30,
|
||||||||||||||
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
Shares
|
221,617
|
198,077
|
221,617
|
197,589
|
|
June 30, 2012
|
||||||
Transaction Description
|
Maximum Potential
Payments
|
Outstanding
Liabilities(1)
|
|||||
Heating oil, propane, other petroleum products, weather and commodity hedges (In Thousands)
|
$
|
26,250
|
$
|
4,189
|
(1)
|
Balance included in CH Energy Group's Consolidated Balance Sheet.
|
Summary of Regulatory Assets and Liabilities
|
|
|
|
|
|||||||||||
|
|
June 30,
|
December 31,
|
June 30,
|
|||||||||
|
2012
|
2011
|
2011
|
|||||||||
Regulatory Assets (Debits):
|
||||||||||||
Current:
|
||||||||||||
Deferred purchased electric and natural gas costs
|
$
|
10,520
|
$
|
10,775
|
$
|
6,522
|
||||||
Deferred unrealized losses on derivatives
|
11,342
|
19,791
|
11,034
|
|||||||||
PSC General and Temporary State Assessment and carrying charges
|
7,237
|
8,123
|
7,710
|
|||||||||
RDM and carrying charges
|
4,611
|
791
|
-
|
|||||||||
Residual natural gas deferred balances
|
4,554
|
4,554
|
4,554
|
|||||||||
Deferred debt expense on re-acquired debt
|
628
|
625
|
632
|
|||||||||
Deferred and accrued costs - MGP site remediation and carrying charges
|
4,605
|
4,577
|
4,523
|
|||||||||
Other
|
290
|
290
|
290
|
|||||||||
|
43,787
|
49,526
|
35,265
|
|||||||||
Long-term:
|
||||||||||||
Deferred pension costs
|
145,854
|
159,020
|
127,401
|
|||||||||
Deferred unrealized losses on derivatives
|
973
|
-
|
5,259
|
|||||||||
Carrying charges - pension reserve
|
7,272
|
4,986
|
3,006
|
|||||||||
Deferred and accrued costs - MGP site remediation and carrying charges
|
12,137
|
14,260
|
13,016
|
|||||||||
Deferred debt expense on re-acquired debt
|
5,015
|
5,332
|
5,167
|
|||||||||
Deferred Medicare Subsidy taxes
|
7,591
|
7,307
|
7,031
|
|||||||||
Residual natural gas deferred balances and carrying charges
|
7,082
|
9,829
|
11,384
|
|||||||||
Income taxes recoverable through future rates
|
42,304
|
42,997
|
34,745
|
|||||||||
Energy efficiency incentives
|
2,719
|
2,719
|
-
|
|||||||||
Deferred storm costs and carrying charges
|
13,296
|
15,416
|
-
|
|||||||||
Other
|
12,917
|
12,134
|
9,835
|
|||||||||
|
257,160
|
274,000
|
216,844
|
|||||||||
Total Regulatory Assets
|
$
|
300,947
|
$
|
323,526
|
$
|
252,109
|
||||||
|
||||||||||||
Regulatory Liabilities (Credits):
|
||||||||||||
Current:
|
||||||||||||
Excess electric depreciation reserve
|
$
|
-
|
$
|
1,107
|
$
|
3,229
|
||||||
RDM and carrying charges
|
-
|
-
|
3,746
|
|||||||||
Deferred unrealized gains on derivatives
|
896
|
-
|
-
|
|||||||||
Income taxes refundable through future rates
|
5,178
|
5,062
|
4,533
|
|||||||||
Deferred unbilled gas revenues
|
2,108
|
4,992
|
1,948
|
|||||||||
|
8,182
|
11,161
|
13,456
|
|||||||||
Long-term:
|
||||||||||||
Customer benefit fund
|
2,512
|
2,623
|
3,397
|
|||||||||
Deferred cost of removal
|
53,307
|
52,565
|
52,991
|
|||||||||
Rate Base impact of tax repair project and carrying charges
|
8,173
|
9,413
|
9,862
|
|||||||||
Excess electric depreciation reserve and carrying charges
|
1,887
|
2,678
|
3,072
|
|||||||||
Deferred unrealized gains on derivatives
|
-
|
931
|
-
|
|||||||||
Income taxes refundable through future rates
|
25,951
|
29,648
|
23,826
|
|||||||||
Deferred OPEB costs
|
10,571
|
6,988
|
10,494
|
|||||||||
Carrying charges - OPEB reserve
|
7,586
|
5,405
|
3,401
|
|||||||||
Other
|
7,752
|
5,624
|
13,718
|
|||||||||
|
117,739
|
115,875
|
120,761
|
|||||||||
Total Regulatory Liabilities
|
$
|
125,921
|
$
|
127,036
|
$
|
134,217
|
||||||
|
||||||||||||
Net Regulatory Assets
|
$
|
175,026
|
$
|
196,490
|
$
|
117,892
|
Description
|
|
2010 Rate Order
|
Electric delivery revenue increases
|
|
$11.8 million(1) 7/1/10
$9.3 million(1) 7/1/11
$9.1 million 7/1/12
|
Natural gas delivery revenue increases
|
|
$5.7 million 7/1/10
$2.4 million 7/1/11
$1.6 million 7/1/12
|
ROE
|
|
10.0%
|
Earnings sharing
|
|
Yes(2)
|
Capital structure - common equity
|
|
48%
|
Targets with true-up provisions - % of revenue requirement to defer for shortfalls
|
|
|
Net plant balances
|
|
100%
|
Transmission and distribution ROW maintenance
|
|
100%
|
RDMs - electric and natural gas(3)
|
|
Yes
|
New deferral accounting for full recovery
|
|
|
Fixed debt costs
|
|
Yes(4)
|
Transmission sag mitigation
|
|
Yes
|
New York State Temporary Assessment
|
|
Yes
|
Material regulatory actions(5)
|
|
Yes(5)
|
Property taxes - Deferral for 90% of excess/deficiency relative to revenue requirement
|
|
Yes(6)
|
(1)
|
Moderated by $12 million and $4 million bill credits, respectively.
|
(2)
|
ROE > 10.5%, 50% to customers, > 11.0%, 80% to customers, > 11.5%, 90% to customers.
|
(3)
|
Electric is based on revenue dollars; gas is based on usage per customer.
|
(4)
|
Deferral authorization in RY2 and RY3 only.
|
(5)
|
Legislative, governmental or regulatory actions with individual impacts greater than or equal to 2% of net income of the applicable department.
|
(6)
|
The Company's pre-tax gain or loss limited to $0.7 million per rate year.
|
NOTE 3 - New Accounting Guidance
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Newly adopted and soon to be adopted accounting guidance is summarized below, including explanations for any new guidance issued in 2012 (except that which is not currently applicable) which is expected to have a material impact on CH Energy Group and its subsidiaries.
|
Impact
|
|
Category
|
|
Accounting
Reference
|
|
Title
|
|
Issued Date
|
|
Effective Date
|
1
|
|
Comprehensive Income (Topic 220)
|
|
ASU No. 2011-05
|
|
Presentation of Comprehensive Income
|
|
Jun-11
|
|
Jan-12
|
1
|
|
Comprehensive Income (Topic 220)
|
|
ASU No. 2011-12
|
|
Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income
|
|
Dec-11
|
|
Jan-12
|
1
|
|
Fair Value Measurements (Topic 820)
|
|
ASU No. 2011-04
|
|
Amendments to Achieve Common Fair Value Measurements and Disclosure Requirements in US GAAP and IFRS
|
|
May-11
|
|
Jan-12
|
2
|
|
Balance Sheet (Topic 210)
|
|
ASU No. 2011-11
|
|
Disclosures about Offsetting Assets and Liabilities
|
|
Dec-11
|
|
Jan-13
|
Impact Key:
|
|
|
|
|
|
|
|
|
|
(1)
|
No current impact on the financial condition, results of operations and cash flows of CH Energy Group and its subsidiaries when adopted on the effective date noted. Additional disclosures have been added or presentation of information modified where required.
|
||||||||
(2)
|
No anticipated impact on the financial condition, results of operations and cash flows of CH Energy Group and its subsidiaries upon future adoption.
|
Other than the uncertain tax position related to the Company's accounting method change, there are no other uncertain tax positions. The following is a summary of activity related to uncertain tax positions (In Thousands):
|
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
||||||||||
|
2012
|
2011
|
2012
|
2011
|
||||||||
Balance at the beginning of the period
|
$
|
3,174
|
$
|
11,952
|
$
|
3,172
|
$
|
11,486
|
||||
Adjustment related to tax accounting method change
|
4
|
(1,018
|
)
|
6
|
(552
|
)
|
||||||
Balance at the end of the period
|
$
|
3,178
|
$
|
10,934
|
$
|
3,178
|
$
|
10,934
|
Jurisdiction
|
|
Tax Years Open for Audit
|
Federal(1)
|
|
2007 - 2011
|
New York State
|
|
2007 - 2011
|
Reconciliation - CH Energy Group
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following is a reconciliation between the amount of federal income tax computed on income before taxes at the statutory rate and the amount reported in CH Energy Group's Consolidated Statement of Income (In Thousands):
|
|
|
Three Months Ended
June 30,
|
|
|
Six Months Ended
June 30,
|
|
||||||||||
|
|
2012
|
|
|
2011
|
|
|
2012
|
|
|
2011
|
|
||||
Net income attributable to CH Energy Group
|
|
$
|
1,636
|
|
|
$
|
5,955
|
|
|
$
|
16,217
|
|
|
$
|
22,902
|
|
Preferred Stock dividends of Central Hudson
|
|
|
176
|
|
|
|
242
|
|
|
|
418
|
|
|
|
485
|
|
Preferred Stock Redemption Premium
|
|
|
342
|
|
|
|
-
|
|
|
|
342
|
|
|
|
-
|
|
Federal income tax
|
|
|
-
|
|
|
|
(325)
|
|
|
|
-
|
|
|
|
678
|
|
State income tax
|
|
|
(157)
|
|
|
|
(77)
|
|
|
|
250
|
|
|
|
271
|
|
Deferred federal income tax
|
|
|
2,866
|
|
|
|
3,519
|
|
|
|
13,319
|
|
|
|
12,072
|
|
Deferred state income tax
|
|
|
317
|
|
|
|
(174)
|
|
|
|
1,228
|
|
|
|
572
|
|
Income before taxes
|
|
$
|
5,180
|
|
|
$
|
9,140
|
|
|
$
|
31,774
|
|
|
$
|
36,980
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Computed federal tax at 35% statutory rate
|
|
$
|
1,813
|
|
|
$
|
3,199
|
|
|
$
|
11,121
|
|
|
$
|
12,943
|
|
State income tax net of federal tax benefit
|
|
|
307
|
|
|
|
(24)
|
|
|
|
1,666
|
|
|
|
964
|
|
Depreciation flow-through
|
|
|
782
|
|
|
|
777
|
|
|
|
1,579
|
|
|
|
1,565
|
|
Cost of Removal
|
|
|
(600)
|
|
|
|
(458)
|
|
|
|
(1,196)
|
|
|
|
(915)
|
|
Merger Transaction Costs
|
|
|
1,283
|
|
|
|
-
|
|
|
|
2,988
|
|
|
|
-
|
|
Production tax credits
|
|
|
-
|
|
|
|
(63)
|
|
|
|
-
|
|
|
|
(98)
|
|
Other
|
|
|
(559)
|
|
|
|
(488)
|
|
|
|
(1,361)
|
|
|
|
(866)
|
|
Total income tax
|
|
$
|
3,026
|
|
|
$
|
2,943
|
|
|
$
|
14,797
|
|
|
$
|
13,593
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate - federal
|
|
|
55.3
|
%
|
|
|
34.9
|
%
|
|
|
41.9
|
%
|
|
|
34.5
|
%
|
Effective tax rate - state
|
|
|
3.1
|
%
|
|
|
(2.7)
|
%
|
|
|
4.7
|
%
|
|
|
2.2
|
%
|
Effective tax rate - combined
|
|
|
58.4
|
%
|
|
|
32.2
|
%
|
|
|
46.6
|
%
|
|
|
36.7
|
%
|
Reconciliation - Central Hudson
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following is a reconciliation between the amount of federal income tax computed on income before taxes at the statutory rate and the amount reported in Central Hudson's Statement of Income (In Thousands):
|
|
|
Three Months Ended
June 30,
|
|
|
Six Months Ended
June 30,
|
|||||||||||
|
|
2012
|
|
|
2011
|
|
|
2012
|
|
|
2011
|
|
||||
Net income
|
|
$
|
6,671
|
|
|
$
|
7,371
|
|
|
$
|
23,404
|
|
|
$
|
20,011
|
|
Federal income tax
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
State income tax
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
Deferred federal income tax
|
|
|
3,674
|
|
|
|
4,209
|
|
|
|
12,994
|
|
|
|
11,496
|
|
Deferred state income tax
|
|
|
580
|
|
|
|
546
|
|
|
|
2,013
|
|
|
|
1,508
|
|
Income before taxes
|
|
$
|
10,925
|
|
|
$
|
12,126
|
|
|
$
|
38,411
|
|
|
$
|
33,015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Computed federal tax at 35% statutory rate
|
|
$
|
3,824
|
|
|
$
|
4,244
|
|
|
$
|
13,444
|
|
|
$
|
11,555
|
|
State income tax net of federal tax benefit
|
|
|
580
|
|
|
|
495
|
|
|
|
2,013
|
|
|
|
1,398
|
|
Depreciation flow-through
|
|
|
782
|
|
|
|
777
|
|
|
|
1,579
|
|
|
|
1,565
|
|
Cost of Removal
|
|
|
(600)
|
|
|
|
(458)
|
|
|
|
(1,196)
|
|
|
|
(915)
|
|
Other
|
|
|
(332)
|
|
|
|
(303)
|
|
|
|
(833)
|
|
|
|
(599)
|
|
Total income tax
|
|
$
|
4,254
|
|
|
$
|
4,755
|
|
|
$
|
15,007
|
|
|
$
|
13,004
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate - federal
|
|
|
33.6
|
%
|
|
|
34.7
|
%
|
|
|
33.8
|
%
|
|
|
34.8
|
%
|
Effective tax rate - state
|
|
|
5.3
|
%
|
|
|
4.5
|
%
|
|
|
5.2
|
%
|
|
|
4.6
|
%
|
Effective tax rate - combined
|
|
|
38.9
|
%
|
|
|
39.2
|
%
|
|
|
39.0
|
%
|
|
|
39.4
|
%
|
|
|
# of
|
|
|
|
|
Total
|
|
|
|
|
Total
|
||
|
|
Acquired
|
|
Purchase
|
|
Intangible
|
|
|
|
|
Tangible
|
|||
Quarter Ended
|
|
Companies
|
|
Price
|
|
Assets(1)
|
|
Goodwill
|
|
Assets
|
||||
March 31, 2012
|
|
1
|
|
$
|
275
|
|
$
|
265
|
|
$
|
240
|
|
$
|
10
|
June 30, 2012
|
|
-
|
|
1
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Total
|
|
1
|
|
$
|
275
|
|
$
|
265
|
|
$
|
240
|
|
$
|
10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Including goodwill.
|
-
|
On May 1, 2011, CHEC completed the sale of Lyonsdale, which owns a wood-burning electric generating facility in Lyons Falls, New York.
|
-
|
On August 11, 2011, CHEC completed the sale of Shirley Wind, which owns a wind project in Glenmore, Wisconsin.
|
-
|
On September 16, 2011, CHEC completed the sale of CH-Auburn, which owns an electric generating plant that utilizes methane gas generated by the City of Auburn, New York landfill.
|
-
|
On December 29, 2011, CHEC completed the sale of a molecular gate owned by CH-Greentree, which was used to remove nitrogen from landfill gas and was being leased to Greentree Landfill Gas Company, LLC.
|
|
CH-Auburn
|
Shirley Wind
|
Lyonsdale
|
CH-Greentree
|
||||||||||||
Assets:
|
||||||||||||||||
Current Assets
|
$
|
174
|
$
|
623
|
$
|
2,099
|
$
|
-
|
||||||||
Other Assets
|
-
|
461
|
-
|
-
|
||||||||||||
Property, Plant and Equipment:
|
||||||||||||||||
Property, plant and equipment
|
4,667
|
32,564
|
10,670
|
5,500
|
||||||||||||
Less: Accumulated depreciation
|
626
|
657
|
4,191
|
1,205
|
||||||||||||
Total property, plant and equipment, net
|
4,041
|
31,907
|
6,479
|
4,295
|
||||||||||||
Assets sold
|
$
|
4,215
|
$
|
32,991
|
$
|
8,578
|
$
|
4,295
|
||||||||
|
||||||||||||||||
Liabilities:
|
||||||||||||||||
Current Liabilities
|
$
|
85
|
$
|
6
|
$
|
322
|
$
|
-
|
||||||||
Other Liabilities
|
1,736
|
-
|
-
|
-
|
||||||||||||
Liabilities sold
|
$
|
1,821
|
$
|
6
|
$
|
322
|
$
|
-
|
||||||||
|
||||||||||||||||
Net Assets Sold
|
$
|
2,394
|
$
|
32,985
|
$
|
8,256
|
$
|
4,295
|
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
||||||||||||||
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
Revenues from discontinued operations
|
$
|
-
|
$
|
2,097
|
$
|
-
|
$
|
5,542
|
||||||||
Income from discontinued operations before tax
|
-
|
220
|
-
|
821
|
||||||||||||
Loss from sale of discontinued operations
|
-
|
(92
|
)
|
-
|
(543
|
)
|
||||||||||
Income tax expense from discontinued operations
|
-
|
38
|
-
|
73
|
Investments
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
The value of CHEC's investments as of June 30, 2012 is as follows (In Thousands):
|
CHEC Investment
|
Description
|
Intercompany Debt
|
Equity Investment
|
Total
|
||||||||||
Griffith Energy Services
|
100% controlling interest in a fuel distribution business
|
$
|
28,100
|
$
|
36,695
|
$
|
64,795
|
|||||||
Cornhusker Holdings
|
12% equity interest plus subordinated debt investment in an operating corn-ethanol plant
|
-
|
-
|
-
|
||||||||||
CH-Community Wind
|
50% equity interest in a joint venture that owns 18% interest in two operating wind projects
|
-
|
-
|
-
|
||||||||||
Other
|
Partnerships and an energy sector venture capital fund
|
-
|
2,589
|
2,589
|
||||||||||
|
|
$
|
28,100
|
$
|
39,284
|
$
|
67,384
|
The components of amortizable intangible assets of CH Energy Group are summarized as follows (In Thousands):
|
|
June 30, 2012
|
December 31, 2011
|
June 30, 2011
|
||||||||||||||||
|
Gross Carrying Amount
|
Accumulated Amortization
|
Gross Carrying Amount
|
Accumulated Amortization
|
Gross Carrying Amount
|
Accumulated Amortization
|
|||||||||||||
Customer relationships
|
$
|
36,526
|
$
|
24,797
|
$
|
36,517
|
$
|
23,571
|
$ |
35,341
|
$
|
22,389
|
|||||||
Covenants not to compete
|
377
|
166
|
361
|
134
|
256
|
114
|
|||||||||||||
Total Amortizable Intangibles
|
$
|
36,903
|
$
|
24,963
|
$
|
36,878
|
$
|
23,705
|
$
|
35,597
|
$
|
22,503
|
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||
|
2012
|
2011
|
2012
|
2011
|
|||||||||
Intangibles Amortization Expense (In Thousands)
|
$
|
624
|
$
|
597
|
$
|
1,258
|
$
|
1,194
|
|
2013
|
2014
|
2015
|
2016
|
2017
|
|||||||||||||||
Estimated Amortization Expense
|
$
|
2,494
|
$
|
2,485
|
$
|
2,230
|
$
|
866
|
$
|
563
|
|
June 30, 2012
|
December 31, 2011
|
June 30, 2011
|
|||||||||
CH Energy Group Holding Company Short-term borrowings
|
$
|
6,000
|
$
|
5,000
|
$
|
12,000
|
||||||
Central Hudson Short-term borrowings
|
7,000
|
1,500
|
-
|
|||||||||
Intercompany borrowing
|
(3,000
|
)
|
-
|
-
|
||||||||
Total CH Energy Group
|
$
|
10,000
|
$
|
6,500
|
$
|
12,000
|
|
Pension Benefits
|
OPEB(1)
|
||||||||||||||
|
Three Months Ended
June 30,
|
Three Months Ended
June 30,
|
||||||||||||||
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
Service cost
|
$
|
2,741
|
$
|
2,449
|
$
|
644
|
$
|
673
|
||||||||
Interest cost
|
6,178
|
6,537
|
1,662
|
1,732
|
||||||||||||
Expected return on plan assets
|
(6,768
|
)
|
(6,860
|
)
|
(1,734
|
)
|
(1,711
|
)
|
||||||||
Amortization of:
|
||||||||||||||||
Prior service cost (credit)
|
500
|
536
|
(1,466
|
)
|
(1,466
|
)
|
||||||||||
Transitional obligation
|
-
|
-
|
641
|
642
|
||||||||||||
Recognized actuarial loss
|
5,788
|
6,523
|
2,326
|
2,688
|
||||||||||||
Net Periodic Benefit Cost
|
$
|
8,439
|
$
|
9,185
|
$
|
2,073
|
$
|
2,558
|
|
Pension Benefits
|
OPEB(1)
|
||||||||||||||
|
Six Months Ended
June 30,
|
Six Months Ended
June 30,
|
||||||||||||||
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
Service cost
|
$
|
5,482
|
$
|
4,897
|
$
|
1,288
|
$
|
1,346
|
||||||||
Interest cost
|
12,355
|
13,074
|
3,324
|
3,464
|
||||||||||||
Expected return on plan assets
|
(13,536
|
)
|
(13,720
|
)
|
(3,468
|
)
|
(3,422
|
)
|
||||||||
Amortization of:
|
||||||||||||||||
Prior service cost (credit)
|
1,001
|
1,072
|
(2,932
|
)
|
(2,932
|
)
|
||||||||||
Transitional obligation
|
-
|
-
|
1,282
|
1,283
|
||||||||||||
Recognized actuarial loss
|
11,576
|
13,046
|
4,652
|
5,376
|
||||||||||||
Net Periodic Benefit Cost
|
$
|
16,878
|
$
|
18,369
|
$
|
4,146
|
$
|
5,115
|
(1) | The OPEB amounts for all periods presented reflect the effect of the Medicare Prescription Drug Improvement and Modernization Act of 2003. |
|
June 30,
|
December 31,
|
June 30,
|
|||||||||
|
2012
|
2011
|
2011
|
|||||||||
Accrued pension costs
|
$
|
98,534
|
$
|
122,562
|
$
|
75,148
|
|
June 30,
|
December 31,
|
June 30,
|
|||||||||
|
2012
|
2011
|
2011
|
|||||||||
Prefunded pension costs prior to funding status adjustment
|
$
|
41,721
|
$
|
30,270
|
$
|
48,267
|
||||||
Additional liability required
|
(140,255
|
)
|
(152,832
|
)
|
(123,415
|
)
|
||||||
Total accrued pension costs
|
$
|
(98,534
|
)
|
$
|
(122,562
|
)
|
$
|
(75,148
|
)
|
|||
Total offset to additional liability - Regulatory assets - Pension Plan
|
$
|
140,255
|
$
|
152,832
|
$
|
123,415
|
Contributions for the six months ended June 30, 2012 and 2011 were as follows (In Thousands):
|
|
Retirement Income Plan
|
OPEB
|
||||||||||||||
|
Six Months Ended
|
Six Months Ended
|
||||||||||||||
|
June 30,
|
June 30,
|
||||||||||||||
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
Contributions
|
$
|
28,000
|
$
|
32,028
|
$
|
3,269
|
$
|
1,184
|
Asset Class
|
June 30, 2012
|
Minimum
|
Target Average
|
Maximum
|
December 31, 2011
|
|||||||||||||||
Equity Securities
|
48.4
|
%
|
45
|
%
|
50
|
%
|
55
|
%
|
35.8
|
%
|
||||||||||
Debt Securities
|
49.7
|
%
|
45
|
%
|
50
|
%
|
55
|
%
|
54.4
|
%
|
||||||||||
Other(1)
|
1.9
|
%
|
-
|
%
|
-
|
%
|
-
|
%
|
9.8
|
%
|
(1)
|
Consists of temporary cash investments, as well as receivables for investments sold and interest, and payables for investments purchased, which have not settled as of that date.
|
Performance Shares
|
|||||||
|
|
|
|
|
|
|
|
A summary of the status of outstanding performance shares granted to executives under the 2006 and 2011 Plans are as follows:
|
|
|
|
|
|
|
Performance Shares
|
|
|
|
Grant Date
|
|
Performance
|
|
Outstanding at
|
|
Grant Date
|
|
Fair Value
|
|
Shares Granted
|
|
June 30, 2012
|
|
February 8, 2010
|
|
$
|
38.62
|
|
48,740
|
|
43,220
|
February 7, 2011
|
|
$
|
49.77
|
|
40,320
|
|
40,320
|
February 6, 2012
|
|
$
|
56.15
|
|
39,440
|
|
39,440
|
Restricted Shares and Restricted Stock Units
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table summarizes information concerning restricted shares and stock units outstanding as of June 30, 2012:
|
Grant Date
|
|
Type of Award
|
|
Shares or
Stock Units Granted
|
|
Grant Date
Fair Value
|
|
Vesting Terms
|
|
Unvested Shares Outstanding at June 30, 2012
|
|
|
October 1, 2009
|
|
Shares
|
|
14,375
|
|
$
|
43.86
|
|
Ratably over 5 years
|
|
8,625
|
|
November 20, 2009
|
|
Stock Units
|
|
13,900
|
|
$
|
41.43
|
|
1/3 each year in Years 5, 6 and 7
|
|
13,900
|
|
February 8, 2010
|
|
Shares
|
|
3,060
|
|
$
|
38.62
|
|
End of 3 years
|
|
2,655
|
(1)
|
February 10, 2010
|
|
Shares
|
|
5,200
|
|
$
|
38.89
|
|
End of 3 years
|
|
5,200
|
|
November 15, 2010
|
|
Shares
|
|
3,000
|
|
$
|
46.53
|
|
Ratably over 3 years
|
|
2,000
|
|
February 7, 2011
|
|
Shares
|
|
1,500
|
|
$
|
49.77
|
|
1/3 each year in Years 3, 4 and 5
|
|
1,500
|
|
February 7, 2011
|
|
Shares
|
|
2,230
|
|
$
|
49.77
|
|
End of 3 years
|
|
2,230
|
|
February 6, 2012
|
|
Shares
|
|
2,170
|
|
$
|
56.15
|
|
End of 3 years
|
|
2,170
|
|
(1)
|
The vesting of 405 shares was accelerated as approved by the Board of Directors.
|
Compensation Expense
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table summarizes expense for equity-based compensation by award type for the three and six months ended June 30, 2012 and 2011 (In Thousands):
|
|
CH Energy Group
|
Central Hudson
|
||||||||||||||
|
Three Months Ended
June 30,
|
Three Months Ended
June 30,
|
||||||||||||||
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
Performance shares
|
$
|
812
|
$
|
864
|
$
|
686
|
$
|
727
|
||||||||
Restricted shares and stock units
|
$
|
114
|
$
|
116
|
$
|
65
|
$
|
67
|
||||||||
Recognized tax benefit of restricted shares and stock units
|
$
|
46
|
$
|
46
|
$
|
26
|
$
|
27
|
|
CH Energy Group
|
Central Hudson
|
||||||||||||||
|
Six Months Ended
June 30,
|
Six Months Ended
June 30,
|
||||||||||||||
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
Performance shares
|
$
|
2,351
|
$
|
1,553
|
$
|
1,211
|
$
|
1,298
|
||||||||
Restricted shares and stock units
|
$
|
227
|
$
|
228
|
$
|
130
|
$
|
133
|
||||||||
Recognized tax benefit of restricted shares and stock units
|
$
|
92
|
$
|
93
|
$
|
52
|
$
|
53
|
·
|
Air
|
·
|
Former Manufactured Gas Plant Facilities
|
·
|
Investigation - Begins with preliminary investigations and is completed upon filing and approval by DEC of a Remedial Investigation ("RI") Report.
|
·
|
Remedial Alternative Analysis - Engineering analysis of alternatives for remediation based on the RI is compiled into a Remedial Alternative Analysis ("RAA") Report.
|
·
|
Remedial Design - Upon approval of the RAA and final decision of remediation approach based on alternatives presented, a Remedial Design ("RD") is developed and filed with the DEC for approval.
|
·
|
Remediation - Completion of the work plan as defined in the approved RD. Upon completion, final reports are filed with the DEC for approval and may include a Construction Completion Report ("CCR"), Final Engineering Report ("FER"), or other reports required by the DEC based on the work performed.
|
·
|
Post-Remediation Monitoring - Entails the operation, maintenance, and monitoring ("OM&M") as directed by the DEC based on the approved final report of remediation. The activities are typically defined in a Site Management Plan ("SMP"), which is approved by the DEC. The extent of activities during this phase may increase or decrease based on the results of ongoing monitoring being performed and future potential usage of the property.
|
Ø
|
Site #1 - Beacon (NY) - Post-Remediation Monitoring Complete
|
-
|
SMP submitted to DEC and release letter for the site expected.
|
-
|
No further costs expected and no amounts accrued as of June 30, 2012 related to this site.
|
-
|
If the building at this site were to be removed, further investigation and testing would be required related to the soil under the building, which may require additional remediation. Management cannot currently estimate the costs that may be incurred related to this.
|
Ø
|
Site #2 - Newburgh (NY) - Post-Remediation In Progress
|
-
|
DEC to provide comments on CCR.
|
-
|
As of June 30, 2012, amounts accrued represent an estimate of costs for OM&M and execution of the draft SMP.
|
-
|
Central Hudson has retired and is removing propane air facilities located on Area A. Once removed, additional investigation and testing will be required, which may require additional remediation. Management cannot currently estimate the costs that may be incurred related to this additional investigation and testing.
|
Ø
|
Site #3 - Laurel Street (Poughkeepsie, NY) - Post-Remediation In Progress
|
-
|
CCR approved by the DEC in 2010.
|
-
|
As of June 30, 2012, amounts accrued represent an estimate of costs for OM&M.
|
Ø
|
Site #4 - Catskill (NY) - Remedial Design in Progress
|
-
|
RAA Report approved by the DEC in July 2011 and the 100% Remedial Design (RD) is in progress with an anticipated submittal to the DEC in July 2012.
|
-
|
Once the 100% RD is approved by DEC, remediation is anticipated to commence during late summer of 2012.
|
-
|
As of June 30, 2012, amounts accrued represent an estimate of costs to complete the RD, remediation, and OM&M.
|
Ø
|
Site #5 - North Water Street (Poughkeepsie, NY) - Remedial Alternatives Analysis in progress
|
-
|
Remedial Action Objectives and Proposed Remedial Alternatives document approved by the DEC in May 2012.
|
-
|
Further investigation and analysis being performed in connection with the development of the RAA.
|
-
|
Upon approval of the RAA, the RD will be completed, followed by remediation.
|
-
|
As of March 29, 2012, DEC approved an Interim Remedial Measure ("IRM") associated with the southern portion of this site. This IRM is being performed in conjunction with a public benefit project to construct a pedestrian pathway and elevator as proposed by the Walkway Over The Hudson, a not for profit organization based in Poughkeepsie, NY. The IRM activities are anticipated to commence in late summer of 2012 and are expected to be completed by fall of 2012.
|
-
|
As of June 30, 2012, amounts accrued represent an estimate for completion of the RAA and RD as well as the estimated cost of the IRM. Management cannot estimate the cost for the remaining physical remediation or any post-remediation until the RAA is complete.
|
Ø
|
Site #6 - Kingston (NY) - Remedial Investigation in Progress
|
-
|
RI report submitted to the DEC in May 2012.
|
-
|
Upon DEC approval of the RI report, RAA and RD will be developed, followed by remediation.
|
-
|
As of June 30, 2012, amounts accrued represent an estimate of costs to complete the RAA and the RD. Management cannot estimate the cost for physical remediation or any post-remediation until the RAA is complete.
|
Ø
|
Site #7 - Bayeaux Street (Poughkeepsie, NY) - No action required
|
-
|
No further investigation or remedial action is currently required. However, per the DEC this site still remains on the list for potential future investigation.
|
Site #
|
Liability Recorded as of 12/31/11
|
Amounts Spent in 2012(1)
|
Liability Adjustment
|
Liability Recorded as of 6/30/12
|
Current Portion of Liability at 6/30/12
|
Long-Term Portion of Liability at 6/30/12
|
|||||||||||||||||||
1, 2, 3, 4
|
$
|
14,590
|
$
|
245
|
$
|
(765
|
)
|
$
|
13,580
|
$
|
7,093
|
$
|
6,487
|
||||||||||||
5, 6 |
1,253
|
249
|
817
|
1,821
|
988
|
833
|
|||||||||||||||||||
$
|
15,843
|
$
|
494
|
$
|
52
|
$
|
15,401
|
$
|
8,081
|
$
|
7,320
|
(1)
|
Amounts spent in 2012 as shown above do not include legal fees of approximately $10 thousand.
|
-
|
Current Rate Order includes cash recovery from customers of $13.6 million spread equally over the three year settlement period ending June 30, 2013.
|
-
|
As part of the 2010 Rate Order, Central Hudson maintained previously granted deferral authority and subsequent recovery for amounts spent over the rate allowance.
|
-
|
Total MGP Site Investigation and Remediation costs recovered through rates and other regulatory mechanisms from July 1, 2007 through June 30, 2012 was approximately $22.2 million, with $1.1 million and $2.3 million recovered in the three and six months ended June 30, 2012, respectively.
|
-
|
The total spent in the three and six months ended June 30, 2012 related to site investigation and remediation was approximately $0.3 million and $0.6 million, respectively.
|
-
|
The regulatory asset balance as of June 30, 2012 was $16.7 million, which represents the difference between amounts spent or currently accrued as a liability and the amounts recovered through rate allowance, as well as carrying charges accrued.
|
-
|
Upon completion of investigation at sites #5 and #6, when remediation and post-remediation costs will be able to be reasonably estimated and therefore will be recorded as a liability, this regulatory asset balance will likely increase significantly. Management projects that the investigation at these sites will likely be completed within the next two years.
|
·
|
Little Britain Road property owned by Central Hudson
|
·
|
Eltings Corners
|
CH Energy Group Segment Disclosure
|
|
|
|
|
|
|
|
||||||||||||
(In Thousands)
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2012
|
|||||||||||||||||||||||
|
Segments
|
Other
|
||||||||||||||||||||||
|
Central Hudson
|
Businesses
|
||||||||||||||||||||||
|
|
Natural
|
|
and
|
|
|
||||||||||||||||||
|
Electric
|
Gas
|
Griffith
|
Investments
|
Eliminations
|
Total
|
||||||||||||||||||
Revenues from external customers
|
$
|
115,429
|
$
|
26,120
|
$
|
56,021
|
$
|
-
|
$
|
-
|
$
|
197,570
|
||||||||||||
Intersegment revenues
|
2
|
20
|
-
|
-
|
(22
|
)
|
-
|
|||||||||||||||||
Total revenues
|
115,431
|
26,140
|
56,021
|
-
|
(22
|
)
|
197,570
|
|||||||||||||||||
Operating income (loss)
|
12,371
|
4,244
|
(1,971
|
)
|
(3,294
|
)
|
-
|
11,350
|
||||||||||||||||
Interest and investment income
|
1,248
|
222
|
-
|
576
|
(564)
|
(1)
|
1,482
|
|||||||||||||||||
Interest charges
|
5,867
|
1,568
|
527
|
524
|
(564)
|
(1)
|
7,922
|
|||||||||||||||||
Income (loss) before income taxes
|
7,944
|
2,981
|
(2,499
|
)
|
(3,246
|
)
|
-
|
5,180
|
||||||||||||||||
Net Income (Loss) Attributable to CH Energy Group
|
4,835
|
1,318
|
(1,474
|
)
|
(3,043
|
)
|
-
|
1,636
|
||||||||||||||||
Segment assets at June 30
|
1,242,780
|
365,383
|
101,596
|
14,856
|
(1,199
|
)
|
1,723,416
|
(1)
|
This represents the elimination of inter-company interest income (expense) generated from lending activities between CH Energy Group (the holding company), and its subsidiaries (Central Hudson and Griffith).
|
CH Energy Group Segment Disclosure
|
|
|
|
|
|
|
|
|
|
|
(In Thousands)
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2011
|
|||||||||||||||||||||||
|
Segments
|
Other
|
||||||||||||||||||||||
|
Central Hudson
|
Businesses
|
||||||||||||||||||||||
|
Natural
|
and
|
||||||||||||||||||||||
|
Electric
|
Gas
|
Griffith
|
Investments
|
Eliminations
|
Total
|
||||||||||||||||||
Revenues from external customers
|
$
|
114,235
|
$
|
33,997
|
$
|
58,835
|
$
|
-
|
$
|
-
|
$
|
207,067
|
||||||||||||
Intersegment revenues
|
5
|
39
|
-
|
-
|
(44
|
)
|
-
|
|||||||||||||||||
Total revenues
|
114,240
|
34,036
|
58,835
|
-
|
(44
|
)
|
207,067
|
|||||||||||||||||
Operating income (loss)
|
14,213
|
3,824
|
(2,015
|
)
|
(78
|
)
|
-
|
15,944
|
||||||||||||||||
Interest and investment income
|
1,208
|
213
|
-
|
747
|
(737)
|
(1)
|
1,431
|
|||||||||||||||||
Interest charges
|
5,892
|
1,520
|
737
|
852
|
(737)
|
(1)
|
8,264
|
|||||||||||||||||
Income (Loss) before income taxes
|
9,452
|
2,674
|
(2,754
|
)
|
(360
|
)
|
-
|
9,012
|
||||||||||||||||
Net Income (Loss) Attributable to CH Energy Group
|
5,682
|
1,447
|
(1,674
|
)(3)
|
500
|
(2)
|
-
|
5,955
|
||||||||||||||||
Segment assets at June 30
|
1,168,839
|
351,227
|
103,893
|
84,867
|
(4,514
|
)
|
1,704,312
|
(1)
|
This represents the elimination of inter-company interest income (expense) generated from lending activities between CH Energy Group (the holding company), and its subsidiaries (CHEC and Griffith).
|
(2)
|
Includes income from discontinued operations of $139.
|
(3)
|
Includes loss from discontinued operations of $49.
|
CH Energy Group Segment Disclosure
|
||||||||||||||||||||||||||||||||||||
(In Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2012
|
|||||||||||||||||||||||
|
Segments
|
Other
|
||||||||||||||||||||||
|
Central Hudson
|
Businesses
|
||||||||||||||||||||||
|
Natural
|
and
|
||||||||||||||||||||||
Electric
|
Gas
|
Griffith
|
Investments
|
Eliminations
|
Total
|
|||||||||||||||||||
Revenues from external customers
|
$
|
244,701
|
$
|
81,970
|
$
|
144,971
|
$
|
-
|
$
|
-
|
$
|
471,642
|
||||||||||||
Intersegment revenues
|
5
|
110
|
-
|
-
|
(115
|
)
|
-
|
|||||||||||||||||
Total revenues
|
244,706
|
82,080
|
144,971
|
-
|
(115
|
)
|
471,642
|
|||||||||||||||||
Operating income
|
32,496
|
16,723
|
2,976
|
(8,544
|
)
|
-
|
43,651
|
|||||||||||||||||
Interest and investment income
|
3,058
|
558
|
-
|
1,274
|
(1,248)
|
(1)
|
3,642
|
|||||||||||||||||
Interest charges
|
11,583
|
3,107
|
1,223
|
1,059
|
(1,248)
|
(1)
|
15,724
|
|||||||||||||||||
Income (Loss) before income taxes
|
24,168
|
14,243
|
1,769
|
(8,406
|
)
|
-
|
31,774
|
|||||||||||||||||
Net Income (Loss) Attributable to CH Energy Group
|
15,113
|
7,531
|
1,044
|
(7,471
|
)
|
-
|
16,217
|
|||||||||||||||||
Segment assets at June 30
|
1,242,780
|
365,383
|
101,596
|
14,856
|
(1,199
|
)
|
1,723,416
|
(1)
|
This represents the elimination of inter-company interest income (expense) generated from lending activities between CH Energy Group (the holding company), and its subsidiaries (Central Hudson and Griffith).
|
CH Energy Group Segment Disclosure
|
||||||||||||||||||
(In Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2011
|
|||||||||||||||||||||||
|
Segments
|
Other
|
||||||||||||||||||||||
|
Central Hudson
|
Businesses
|
||||||||||||||||||||||
|
Natural
|
and
|
||||||||||||||||||||||
Electric
|
Gas
|
Griffith
|
Investments
|
Eliminations
|
Total
|
|||||||||||||||||||
Revenues from external customers
|
$
|
268,805
|
$
|
109,479
|
$
|
155,755
|
$
|
-
|
$
|
-
|
$
|
534,039
|
||||||||||||
Intersegment revenues
|
10
|
205
|
-
|
-
|
(215
|
)
|
-
|
|||||||||||||||||
Total revenues
|
268,815
|
109,684
|
155,755
|
-
|
(215
|
)
|
534,039
|
|||||||||||||||||
Operating income
|
28,888
|
15,725
|
5,483
|
(150
|
)
|
-
|
49,946
|
|||||||||||||||||
Interest and investment income
|
2,621
|
666
|
-
|
1,501
|
(1,491)
|
(1)
|
3,297
|
|||||||||||||||||
Interest charges
|
11,749
|
3,036
|
1,490
|
1,701
|
(1,491)
|
(1)
|
16,485
|
|||||||||||||||||
Income (Loss) before income taxes
|
19,539
|
13,476
|
4,061
|
(374
|
)
|
-
|
36,702
|
|||||||||||||||||
Net Income Attributable to CH Energy Group
|
11,715
|
7,811
|
2,718
|
(3)
|
658
|
(2)
|
-
|
22,902
|
||||||||||||||||
Segment assets at June 30
|
1,168,839
|
351,227
|
103,893
|
84,867
|
(4,514)
|
|
1,704,312
|
(1)
|
This represents the elimination of inter-company interest income (expense) generated from temporary lending activities between CH Energy Group (the holding company), and its subsidiaries (CHEC and Griffith).
|
(2)
|
Includes loss from discontinued operations of $117.
|
(3)
|
Includes income from discontinued operations of $322.
|
Central Hudson
|
% of Requirement Hedged (1)
|
|||
Electric Derivative Contracts:
|
||||
July 2012 - December 2012
|
43.6
|
%
|
||
2013
|
6.9
|
%
|
||
2014
|
6.9
|
%
|
||
Natural Gas Derivative Contracts:
|
||||
November 2012 - March 2013
|
17.1
|
%
|
Contingent Contracts
|
|
|
|
|
|
|
|
|
(Dollars In Thousands)
|
|
|
|
|
|
|
|
|
|
As of June 30, 2012
|
|||||||||||
Triggering Event
|
# of Contracts in a Liability Position Containing the Triggering Feature
|
Gross Fair Value of Contract
|
Cost to Settle if Contingent Feature is Triggered
(net of collateral)
|
|||||||||
Central Hudson:
|
||||||||||||
Credit Rating Downgrade (to below BBB-)
|
2
|
$
|
351
|
$
|
351
|
|||||||
Adequate Assurance(1)
|
-
|
-
|
-
|
|||||||||
Total Central Hudson
|
2
|
$
|
351
|
$
|
351
|
|||||||
|
||||||||||||
Griffith:
|
||||||||||||
Change in Ownership (CHEG ownership of CHEC falls below 51%)
|
-
|
$
|
-
|
$
|
-
|
|||||||
Adequate Assurance(1)
|
-
|
-
|
-
|
|||||||||
Total Griffith
|
-
|
$
|
-
|
$
|
-
|
|||||||
|
||||||||||||
Total CH Energy Group
|
2
|
$
|
351
|
$
|
351
|
(1)
|
If the counterparty has reasonable grounds to believe Central Hudson's or Griffith's creditworthiness or performance has become unsatisfactory, it can request collateral in an amount determined by the counterparty, not to exceed the amount required to settle the contract.
|
Derivative contracts are measured at fair value on a recurring basis. As of June 30, 2012, December 31, 2011 and June 30, 2011, CH Energy Group's and Central Hudson's derivative assets and liabilities by category and hierarchy level are as follows (In Thousands):
|
Asset or Liability Category
|
Fair Value
|
Quoted Prices in Active Markets for Identical Assets
(Level 1)
|
Significant Other Observable Inputs
(Level 2)
|
Significant Unobservable Inputs
(Level 3)
|
||||||||||||
As of June 30, 2012
|
||||||||||||||||
Assets:
|
||||||||||||||||
Derivative Contracts:
|
||||||||||||||||
Central Hudson - electric
|
$
|
727
|
$
|
-
|
$
|
-
|
$
|
727
|
||||||||
Central Hudson - natural gas
|
169
|
169
|
-
|
-
|
||||||||||||
Total CH Energy Group and Central Hudson Assets
|
$
|
896
|
$
|
169
|
$
|
-
|
$
|
727
|
||||||||
|
||||||||||||||||
|
||||||||||||||||
Liabilities:
|
||||||||||||||||
Derivative Contracts:
|
||||||||||||||||
Central Hudson - electric
|
$
|
(12,312
|
)
|
$
|
-
|
$
|
-
|
$
|
(12,312
|
)
|
||||||
Central Hudson - natural gas
|
(3
|
)
|
(3
|
)
|
-
|
-
|
||||||||||
Total CH Energy Group and Central Hudson Liabilities
|
$
|
(12,315
|
)
|
$
|
(3
|
)
|
$
|
-
|
$
|
(12,312
|
)
|
|||||
|
||||||||||||||||
As of December 31, 2011
|
||||||||||||||||
Assets:
|
||||||||||||||||
Derivative Contracts:
|
||||||||||||||||
Central Hudson - electric
|
$
|
931
|
$
|
-
|
$
|
-
|
$
|
931
|
||||||||
Central Hudson - total return swap
|
320
|
-
|
320
|
-
|
||||||||||||
Total Central Hudson Assets
|
$
|
1,251
|
$
|
-
|
$
|
320
|
$
|
931
|
||||||||
|
||||||||||||||||
Griffith - heating oil
|
$
|
29
|
$
|
29
|
$
|
-
|
$
|
-
|
||||||||
Total CH Energy Group Assets
|
$
|
1,280
|
$
|
29
|
$
|
320
|
$
|
931
|
||||||||
|
||||||||||||||||
Liabilities:
|
||||||||||||||||
Derivative Contracts:
|
||||||||||||||||
Central Hudson - electric
|
$
|
(17,761
|
)
|
$
|
-
|
$
|
-
|
$
|
(17,761
|
)
|
||||||
Central Hudson - natural gas
|
(2,030
|
)
|
(2,030
|
)
|
-
|
-
|
||||||||||
Total CH Energy Group and Central Hudson Liabilities
|
$
|
(19,791
|
)
|
$
|
(2,030
|
)
|
$
|
-
|
$
|
(17,761
|
)
|
|||||
|
||||||||||||||||
As of June 30, 2011
|
||||||||||||||||
Assets:
|
||||||||||||||||
Derivative Contracts:
|
||||||||||||||||
Central Hudson - electric
|
$
|
47
|
$
|
-
|
$
|
-
|
$
|
47
|
||||||||
Central Hudson - natural gas
|
$
|
15
|
$
|
-
|
$
|
15
|
$
|
-
|
||||||||
Total CH Energy Group and Central Hudson Assets
|
$
|
62
|
$
|
-
|
$
|
15
|
$
|
47
|
||||||||
|
||||||||||||||||
|
||||||||||||||||
Liabilities:
|
||||||||||||||||
Derivative Contracts:
|
||||||||||||||||
Central Hudson - electric
|
$
|
(16,202
|
)
|
$
|
-
|
$
|
-
|
$
|
(16,202
|
)
|
||||||
Central Hudson - natural gas
|
(153
|
)
|
-
|
(153
|
)
|
-
|
||||||||||
Total CH Energy Group and Central Hudson Liabilities
|
$
|
(16,355
|
)
|
$
|
-
|
$
|
(153
|
)
|
$
|
(16,202
|
)
|
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||
|
June 30,
|
June 30,
|
||||||||||||||
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
Balance at Beginning of Period
|
$
|
(23,792
|
)
|
$
|
(19,716
|
)
|
$
|
(16,830
|
)
|
$
|
(23,872
|
)
|
||||
Unrealized gains
|
12,207
|
3,561
|
5,245
|
7,717
|
||||||||||||
Realized losses
|
(7,350
|
)
|
(3,499
|
)
|
(15,004
|
)
|
(5,170
|
)
|
||||||||
Purchases
|
-
|
-
|
-
|
-
|
||||||||||||
Issuances
|
-
|
-
|
-
|
-
|
||||||||||||
Sales and settlements
|
7,350
|
3,499
|
15,004
|
5,170
|
||||||||||||
Transfers in and/or out of Level 3
|
-
|
-
|
-
|
-
|
||||||||||||
Balance at End of Period
|
$
|
(11,585
|
)
|
$
|
(16,155
|
)
|
$
|
(11,585
|
)
|
$
|
(16,155
|
)
|
||||
|
||||||||||||||||
The amount of total gains or losses for the period included in earnings attributable to the change in unrealized gains or losses relating to derivatives still held at end of period
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
|
Amount of Gain (Loss) Recognized as Increase/(Decrease) in the Income Statement
|
|
|||||||||||||||
|
Three Months Ended
|
Six Months Ended
|
|
||||||||||||||
|
June 30,
|
June 30,
|
|
||||||||||||||
|
2012
|
2011
|
2012
|
2011
|
Location of Gain (Loss)
|
||||||||||||
Central Hudson:
|
|
||||||||||||||||
Electricity swap contracts
|
$
|
(7,350
|
)
|
$
|
(3,499
|
)
|
$
|
(15,004
|
)
|
$
|
(5,170
|
)
|
Regulatory asset(1)
|
||||
Natural gas swap contracts
|
-
|
-
|
(2,406
|
)
|
(1,385
|
)
|
Regulatory asset(1)
|
||||||||||
Total return swap contracts
|
(50
|
)
|
187
|
566
|
187
|
Other - net
|
|||||||||||
Total Central Hudson
|
$
|
(7,400
|
)
|
$
|
(3,312
|
)
|
$
|
(16,844
|
)
|
$
|
(6,368
|
)
|
|
||||
Griffith:
|
|
||||||||||||||||
Heating oil call option contracts
|
$
|
3
|
$
|
(1
|
)
|
$
|
(26
|
)
|
$
|
(82
|
)
|
Purchased petroleum
|
|||||
Total Griffith
|
$
|
3
|
$
|
(1
|
)
|
$
|
(26
|
)
|
$
|
(82
|
)
|
|
|||||
Total CH Energy Group
|
$
|
(7,397
|
)
|
$
|
(3,313
|
)
|
$
|
(16,870
|
)
|
$
|
(6,450
|
)
|
|
(1)
|
Realized gains and losses on Central Hudson's derivative instruments are conveyed to or recovered from customers through PSC authorized deferral accounting mechanisms, with an offset in revenue and on the balance sheet, and no impact on results of operations.
|
Asset Category
|
Fair Value
|
Quoted Prices in Active Markets for Identical Assets
(Level 1) |
Significant Other Observable Inputs
(Level 2) |
Significant Unobservable Inputs
(Level 3) |
||||||||||||
As of June 30, 2012:
|
||||||||||||||||
Other investments
|
$
|
3,537
|
$
|
3,537
|
$
|
-
|
$
|
-
|
||||||||
As of December 31, 2011:
|
||||||||||||||||
Other investments
|
$
|
2,605
|
$
|
2,605
|
$
|
-
|
$
|
-
|
||||||||
As of June 30, 2011:
|
||||||||||||||||
Other investments
|
$
|
4,054
|
$
|
4,054
|
$
|
-
|
$
|
-
|
Long-term Debt Maturities and Fair Value - CH Energy Group
|
||||||||||||||
(Dollars in Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed Rate
|
Variable Rate
|
Total Debt Outstanding
|
|||||||||||||||||||||
Expected Maturity Date
|
Amount
|
Estimated Effective Interest Rate
|
Amount
|
Estimated Effective Interest Rate
|
Amount
|
Estimated Effective Interest Rate
|
||||||||||||||||||
As of June 30, 2012:
|
||||||||||||||||||||||||
2012
|
$
|
511
|
6.78
|
%
|
$
|
-
|
-
|
%
|
||||||||||||||||
2013
|
31,076
|
6.93
|
%
|
-
|
-
|
%
|
||||||||||||||||||
2014
|
21,650
|
5.53
|
%
|
-
|
-
|
%
|
||||||||||||||||||
2015
|
1,230
|
6.86
|
%
|
-
|
-
|
%
|
||||||||||||||||||
2016
|
9,315
|
3.36
|
%
|
-
|
-
|
%
|
||||||||||||||||||
Thereafter
|
397,032
|
5.29
|
%
|
33,700
|
0.25
|
%
|
||||||||||||||||||
Total
|
$
|
460,814
|
5.38
|
%
|
$
|
33,700
|
0.25
|
%
|
$
|
494,514
|
5.07
|
%
|
||||||||||||
|
||||||||||||||||||||||||
Fair Value
|
$
|
536,893
|
$
|
33,700
|
$
|
570,593
|
||||||||||||||||||
|
||||||||||||||||||||||||
As of December 31, 2011:
|
||||||||||||||||||||||||
2012
|
$
|
37,006
|
6.71
|
%
|
$
|
-
|
-
|
%
|
||||||||||||||||
2013
|
31,076
|
6.92
|
%
|
-
|
-
|
%
|
||||||||||||||||||
2014
|
21,650
|
5.45
|
%
|
-
|
-
|
%
|
||||||||||||||||||
2015
|
1,230
|
6.86
|
%
|
-
|
-
|
%
|
||||||||||||||||||
2016
|
9,315
|
3.39
|
%
|
-
|
-
|
%
|
||||||||||||||||||
Thereafter
|
349,032
|
5.23
|
%
|
33,700
|
0.37
|
%
|
||||||||||||||||||
Total
|
$
|
449,309
|
5.55
|
%
|
$
|
33,700
|
0.37
|
%
|
$
|
483,009
|
5.22
|
%
|
||||||||||||
|
||||||||||||||||||||||||
Fair Value
|
$
|
504,135
|
$
|
33,700
|
$
|
537,835
|
||||||||||||||||||
|
||||||||||||||||||||||||
As of June 30, 2011:
|
||||||||||||||||||||||||
2011
|
$
|
478
|
6.86
|
%
|
$
|
-
|
-
|
%
|
||||||||||||||||
2012
|
37,007
|
6.71
|
%
|
-
|
-
|
%
|
||||||||||||||||||
2013
|
31,076
|
6.92
|
%
|
-
|
-
|
%
|
||||||||||||||||||
2014
|
41,650
|
6.02
|
%
|
-
|
-
|
%
|
||||||||||||||||||
2015
|
1,230
|
6.86
|
%
|
-
|
-
|
%
|
||||||||||||||||||
Thereafter
|
358,298
|
5.54
|
%
|
33,700
|
0.44
|
%
|
||||||||||||||||||
Total
|
$
|
469,739
|
5.77
|
%
|
$
|
33,700
|
0.44
|
%
|
$
|
503,439
|
5.42
|
%
|
||||||||||||
|
||||||||||||||||||||||||
Fair Value
|
$
|
492,987
|
$
|
33,700
|
$
|
526,687
|
Long-term Debt Maturities and Fair Value - Central Hudson
|
||||||||||||||
(Dollars in Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed Rate
|
Variable Rate
|
Total Debt Outstanding
|
|||||||||||||||||||||
Expected Maturity Date
|
Amount
|
Estimated Effective Interest Rate
|
Amount
|
Estimated Effective Interest Rate
|
Amount
|
Estimated Effective Interest Rate
|
||||||||||||||||||
As of June 30, 2012:
|
||||||||||||||||||||||||
2012
|
$
|
-
|
-
|
%
|
$
|
-
|
-
|
%
|
||||||||||||||||
2013
|
30,000
|
6.93
|
%
|
-
|
-
|
%
|
||||||||||||||||||
2014
|
14,000
|
4.81
|
%
|
-
|
-
|
%
|
||||||||||||||||||
2015
|
-
|
-
|
%
|
-
|
-
|
%
|
||||||||||||||||||
2016
|
8,000
|
2.78
|
%
|
-
|
-
|
%
|
||||||||||||||||||
Thereafter
|
380,250
|
5.22
|
%
|
33,700
|
0.25
|
%
|
||||||||||||||||||
Total
|
$
|
432,250
|
5.28
|
%
|
$
|
33,700
|
0.25
|
%
|
$
|
465,950
|
4.96
|
%
|
||||||||||||
|
||||||||||||||||||||||||
Fair Value
|
$
|
498,739
|
$
|
33,700
|
$
|
532,439
|
||||||||||||||||||
|
||||||||||||||||||||||||
As of December 31, 2011:
|
||||||||||||||||||||||||
2012
|
$
|
36,000
|
6.71
|
%
|
$
|
-
|
-
|
%
|
||||||||||||||||
2013
|
30,000
|
6.93
|
%
|
-
|
-
|
%
|
||||||||||||||||||
2014
|
14,000
|
4.81
|
%
|
-
|
-
|
%
|
||||||||||||||||||
2015
|
-
|
-
|
%
|
-
|
-
|
%
|
||||||||||||||||||
2016
|
8,000
|
2.83
|
%
|
-
|
-
|
%
|
||||||||||||||||||
Thereafter
|
332,250
|
5.14
|
%
|
33,700
|
0.37
|
%
|
||||||||||||||||||
Total
|
$
|
420,250
|
5.46
|
%
|
$
|
33,700
|
0.37
|
%
|
$
|
453,950
|
5.12
|
%
|
||||||||||||
|
||||||||||||||||||||||||
Fair Value
|
$
|
468,042
|
$
|
33,700
|
$
|
501,742
|
||||||||||||||||||
|
||||||||||||||||||||||||
As of June 30, 2011:
|
||||||||||||||||||||||||
2011
|
$
|
-
|
-
|
%
|
$
|
-
|
-
|
%
|
||||||||||||||||
2012
|
36,000
|
6.71
|
%
|
-
|
-
|
%
|
||||||||||||||||||
2013
|
30,000
|
6.93
|
%
|
-
|
-
|
%
|
||||||||||||||||||
2014
|
14,000
|
4.81
|
%
|
-
|
-
|
%
|
||||||||||||||||||
2015
|
-
|
-
|
%
|
-
|
-
|
%
|
||||||||||||||||||
Thereafter
|
340,202
|
5.47
|
%
|
33,700
|
0.44
|
%
|
||||||||||||||||||
Total
|
$
|
420,202
|
5.66
|
%
|
$
|
33,700
|
0.44
|
%
|
$
|
453,902
|
5.27
|
%
|
||||||||||||
|
||||||||||||||||||||||||
Fair Value
|
$
|
436,484
|
$
|
33,700
|
$
|
470,184
|
|
Business Segments:
|
|||
|
|
(1)
|
Central Hudson's regulated electric utility business;
|
|
|
|
(2)
|
Central Hudson's regulated natural gas utility business;
|
|
|
|
(3)
|
Griffith's fuel distribution business;
|
|
|
|
|||
|
Other Businesses and Investments:
|
|||
|
|
(4)
|
CHEC's renewable energy investments and the holding company's activities, which consist primarily of financing its subsidiaries.
|
|
-
|
Limit commodity exposure
|
-
|
Manage regulatory affairs effectively
|
-
|
Maintain a financial profile that supports a credit rating in the "A" category
|
CH Energy Group Consolidated
|
|
|
|
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per Share (Basic)
|
|
|
|
|
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
||||||||||||||||||||||
|
2012
|
2011
|
Change
|
2012
|
2011
|
Change
|
||||||||||||||||||
Central Hudson - Electric
|
$
|
0.32
|
$
|
0.36
|
$
|
(0.04
|
)
|
$
|
1.01
|
$
|
0.75
|
$
|
0.26
|
|||||||||||
Central Hudson - Natural Gas
|
0.09
|
0.10
|
(0.01
|
)
|
0.51
|
0.50
|
0.01
|
|||||||||||||||||
Griffith
|
(0.10
|
)
|
(0.11
|
)
|
0.01
|
0.07
|
0.17
|
(0.10
|
)
|
|||||||||||||||
Other Businesses and Investments
|
(0.20
|
)
|
0.03
|
(0.23
|
)
|
(0.50
|
)
|
0.05
|
(0.55
|
)
|
||||||||||||||
Total CH Energy Group Consolidated Earnings, as reported
|
$
|
0.11
|
$
|
0.38
|
$
|
(0.27
|
)
|
$
|
1.09
|
$
|
1.47
|
$
|
(0.38
|
)
|
||||||||||
|
||||||||||||||||||||||||
Significant Events:
|
||||||||||||||||||||||||
Central Hudson
|
$
|
(0.08
|
)
|
$
|
-
|
$
|
(0.08
|
)
|
$
|
(0.12
|
)
|
$
|
(0.13
|
)
|
$
|
0.01
|
||||||||
Griffith
|
(0.03
|
)
|
-
|
(0.03
|
)
|
(0.10
|
)
|
0.03
|
(0.13
|
)
|
||||||||||||||
Other Businesses and Investments
|
(0.22
|
)
|
(0.02
|
)
|
(0.20
|
)
|
(0.54
|
)
|
(0.04
|
)
|
(0.50
|
)
|
||||||||||||
Total Significant Events
|
$
|
(0.33
|
)
|
$
|
(0.02
|
)
|
$
|
(0.31
|
)
|
$
|
(0.76
|
)
|
$
|
(0.14
|
)
|
$
|
(0.62
|
)
|
||||||
|
||||||||||||||||||||||||
CH Energy Group Consolidated Adjusted Earnings Per Share (non-GAAP):
|
||||||||||||||||||||||||
Central Hudson
|
$
|
0.49
|
$
|
0.46
|
$
|
0.03
|
$
|
1.64
|
$
|
1.38
|
$
|
0.26
|
||||||||||||
Griffith
|
(0.07
|
)
|
(0.11
|
)
|
0.04
|
0.17
|
0.14
|
0.03
|
||||||||||||||||
Other Businesses and Investments
|
0.02
|
0.05
|
(0.03
|
)
|
0.04
|
0.09
|
(0.05
|
)
|
||||||||||||||||
Total CH Energy Group Consolidated Adjusted Earnings Per Share (non-GAAP)
|
$
|
0.44
|
$
|
0.40
|
$
|
0.04
|
$
|
1.85
|
$
|
1.61
|
$
|
0.24
|
Central Hudson
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per Share (Basic)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
||||||||||||||||||||||
|
2012
|
2011
|
Change
|
2012
|
2011
|
Change
|
||||||||||||||||||
Central Hudson - Electric
|
$
|
0.32
|
$
|
0.36
|
$
|
(0.04
|
)
|
$
|
1.01
|
$
|
0.75
|
$
|
0.26
|
|||||||||||
Central Hudson - Natural Gas
|
0.09
|
0.10
|
(0.01
|
)
|
0.51
|
0.50
|
0.01
|
|||||||||||||||||
Total Central Hudson Earnings
|
$
|
0.41
|
$
|
0.46
|
$
|
(0.05
|
)
|
$
|
1.52
|
$
|
1.25
|
$
|
0.27
|
|||||||||||
|
||||||||||||||||||||||||
Significant Events:
|
||||||||||||||||||||||||
Storm deferral adjustment
|
$
|
(0.08
|
)
|
$
|
-
|
$
|
(0.08
|
)
|
$
|
(0.12
|
)
|
$
|
(0.03
|
)
|
$
|
(0.09
|
)
|
|||||||
Higher weather related restoration costs(1)
|
-
|
-
|
-
|
-
|
(0.10
|
)
|
0.10
|
|||||||||||||||||
Central Hudson Adjusted Earnings Per Share
|
$
|
0.49
|
$
|
0.46
|
$
|
0.03
|
$
|
1.64
|
$
|
1.38
|
$
|
0.26
|
||||||||||||
|
||||||||||||||||||||||||
|
Change
|
Change
|
||||||||||||||||||||||
Delivery revenue
|
$
|
0.12
|
$ |
0.21
|
||||||||||||||||||||
Higher property and other taxes
|
(0.02
|
)
|
(0.04
|
)
|
||||||||||||||||||||
Higher depreciation
|
(0.03
|
)
|
(0.06
|
)
|
||||||||||||||||||||
Higher maintenance costs for capital projects
|
(0.05
|
)
|
(0.06
|
)
|
||||||||||||||||||||
Lower trimming costs
|
0.04
|
0.13
|
||||||||||||||||||||||
Share accretion
|
0.02
|
0.07
|
||||||||||||||||||||||
Other
|
(0.05
|
)
|
0.01
|
|||||||||||||||||||||
|
$
|
0.03
|
$
|
0.26
|
(1)
|
Amount represents incremental costs incurred for weather related service restoration, including costs for outside contractor assistance in restoration efforts and higher than average internal expenses (such as overtime and materials), which did not meet the PSC criteria for deferral and therefore have not been deferred for future recovery from customers.
|
Griffith
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per Share (Basic)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
||||||||||||||||||||||
|
2012
|
2011
|
Change
|
2012
|
2011
|
Change
|
||||||||||||||||||
Griffith - Fuel Distribution Earnings
|
$
|
(0.10
|
)
|
$
|
(0.11
|
)
|
$
|
0.01
|
$
|
0.07
|
$
|
0.17
|
$
|
(0.10
|
)
|
|||||||||
|
||||||||||||||||||||||||
Significant Events:
|
||||||||||||||||||||||||
Weather impact on sales
|
$
|
(0.03
|
)
|
$
|
-
|
$
|
(0.03
|
)
|
$
|
(0.10
|
)
|
$
|
0.01
|
$
|
(0.11
|
)
|
||||||||
Discontinued operations
|
-
|
-
|
-
|
-
|
0.02
|
(0.02
|
)
|
|||||||||||||||||
Griffith Adjusted Earnings Per Share
|
$
|
(0.07
|
)
|
$
|
(0.11
|
)
|
$
|
0.04
|
$
|
0.17
|
$
|
0.14
|
$
|
0.03
|
||||||||||
|
||||||||||||||||||||||||
|
Change
|
Change
|
||||||||||||||||||||||
Weather-normalized sales (including conservation)
|
$
|
0.01
|
$ |
(0.04
|
)
|
|||||||||||||||||||
Gross margin on petroleum sales
|
0.01
|
0.03
|
||||||||||||||||||||||
Operating expenses
|
0.01
|
0.02
|
||||||||||||||||||||||
Other
|
0.01
|
0.02
|
||||||||||||||||||||||
|
$
|
0.04
|
$
|
0.03
|
Other Businesses and Investments
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per Share (Basic)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
||||||||||||||||||||||
|
2012
|
2011
|
Change
|
2012
|
2011
|
Change
|
||||||||||||||||||
Other Businesses & Investments Earnings
|
$
|
(0.20
|
)
|
$
|
0.03
|
$
|
(0.23
|
)
|
$
|
(0.50
|
)
|
$
|
0.05
|
$
|
(0.55
|
)
|
||||||||
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||
Significant Events:
|
||||||||||||||||||||||||
Renewable Investments:
|
||||||||||||||||||||||||
Operations
|
$
|
-
|
$
|
(0.02
|
)
|
$
|
0.02
|
$
|
-
|
$
|
(0.04
|
)
|
$
|
0.04
|
||||||||||
Merger related costs
|
(0.22
|
)
|
-
|
(0.22
|
)
|
(0.54
|
)
|
-
|
(0.54
|
)
|
||||||||||||||
Other Businesses and Investments Adjusted Earnings Per Share
|
$
|
0.02
|
$
|
0.05
|
$
|
(0.03
|
)
|
$
|
0.04
|
$
|
0.09
|
$
|
(0.05
|
)
|
||||||||||
|
||||||||||||||||||||||||
|
Change
|
Change
|
||||||||||||||||||||||
Lower net interest income
|
$
|
(0.02
|
)
|
$
|
(0.03
|
)
|
||||||||||||||||||
Other
|
(0.01
|
)
|
(0.02
|
)
|
||||||||||||||||||||
|
$
|
(0.03
|
)
|
$
|
(0.05
|
)
|
RESULTS OF OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A breakdown by business unit of CH Energy Group's operating revenues (net of divestitures) and net income for the three and six months ended June 30, 2012 and 2011 are illustrated below (Dollars in Thousands):
|
|
|
Three Months Ended
June 30, 2012
|
Three Months Ended
June 30, 2011
|
||||||||||||||||||||||||||||||
Business Unit
|
Operating
Revenues
|
Net Income (Loss) Attributable to CH Energy Group
|
Operating
Revenues
|
Net Income (Loss) Attributable to CH Energy Group
|
||||||||||||||||||||||||||||
Electric(1)
|
$
|
115,429
|
59
|
%
|
$
|
4,835
|
295
|
%
|
$
|
114,235
|
55
|
%
|
$
|
5,682
|
95
|
%
|
||||||||||||||||
Gas(1)
|
26,120
|
13
|
1,318
|
81
|
33,997
|
17
|
1,447
|
24
|
||||||||||||||||||||||||
Total Central Hudson
|
141,549
|
72
|
6,153
|
376
|
148,232
|
72
|
7,129
|
119
|
||||||||||||||||||||||||
Griffith(1)(2)
|
56,021
|
28
|
(1,474
|
)
|
(90
|
)
|
58,835
|
28
|
(1,674
|
)
|
(28
|
)
|
||||||||||||||||||||
Other Businesses and Investments(3)
|
-
|
-
|
(3,043
|
)
|
(186
|
)
|
-
|
-
|
500
|
9
|
||||||||||||||||||||||
Total CH Energy Group
|
$
|
197,570
|
100
|
%
|
$
|
1,636
|
100
|
%
|
$
|
207,067
|
100
|
%
|
$
|
5,955
|
100
|
%
|
(1)
|
A portion of the revenues above represent amounts collected from customers for the recovery of purchased electric and natural gas costs at Central Hudson and the cost of purchased petroleum products at Griffith and therefore have no material impact on net income. A breakout of these components is as follows:
|
|
|
Electric 2nd Quarter 2012: 19% cost recovery revenues + 40% other revenues = 59%
|
|
|
Electric 2nd Quarter 2011: 18% cost recovery revenues + 37% other revenues = 55%
|
|
|
Natural gas 2nd Quarter 2012: 4% cost recovery revenues + 9% other revenues = 13%
|
|
|
Natural gas 2nd Quarter 2011: 8% cost recovery revenues + 9% other revenues = 17%
|
|
|
Griffith 2nd Quarter 2012: 23% commodity costs + 5% other revenues = 28%
|
|
|
Griffith 2nd Quarter 2011: 23% commodity costs + 5% other revenues = 28%
|
|
(2)
|
Net loss for Griffith for the three months ended June 30, 2011 includes a loss from discontinued operations of $49.
|
|
(3)
|
Net income for Other Businesses and Investments for the three months ended June 30, 2011 includes income from discontinued operations of $139.
|
|
|
Six Months Ended
June 30, 2012
|
Six Months Ended
June 30, 2011
|
||||||||||||||||||||||||||||||
Business Unit
|
Operating
Revenues
|
Net Income (Loss) Attributable to CH Energy Group
|
Operating
Revenues
|
Net Income Attributable to CH Energy Group
|
||||||||||||||||||||||||||||
Electric(1)
|
$
|
244,701
|
52
|
%
|
$
|
15,113
|
93
|
%
|
$
|
268,805
|
50
|
%
|
$
|
11,715
|
51
|
%
|
||||||||||||||||
Gas(1)
|
81,970
|
17
|
7,531
|
47
|
109,479
|
21
|
7,811
|
34
|
||||||||||||||||||||||||
Total Central Hudson
|
326,671
|
69
|
22,644
|
140
|
378,284
|
71
|
19,526
|
85
|
||||||||||||||||||||||||
Griffith(1)(2)
|
144,971
|
31
|
1,044
|
6
|
155,755
|
29
|
2,718
|
12
|
||||||||||||||||||||||||
Other Businesses and Investments(3)
|
-
|
-
|
(7,471
|
)
|
(46
|
)
|
-
|
-
|
658
|
3
|
||||||||||||||||||||||
Total CH Energy Group
|
$
|
471,642
|
100
|
%
|
$
|
16,217
|
100
|
%
|
$
|
534,039
|
100
|
%
|
$
|
22,902
|
100
|
%
|
(1)
|
A portion of the revenues above represent amounts collected from customers for the recovery of purchased electric and natural gas costs at Central Hudson and the cost of purchased petroleum products at Griffith and therefore have no material impact on net income. A breakout of these components is as follows:
|
|
|
Electric YTD 2012: 18% cost recovery revenues + 34% other revenues = 52%
|
|
|
Electric YTD 2011: 20% cost recovery revenues + 30% other revenues = 50%
|
|
|
Natural gas YTD 2012: 7% cost recovery revenues + 10% other revenues = 17%
|
|
|
Natural gas YTD 2011: 11% cost recovery revenues + 10% other revenues = 21%
|
|
|
Griffith YTD 2012: 25% commodity costs + 6% other revenues = 31%
|
|
|
Griffith YTD 2011: 23% commodity costs + 6% other revenues = 29%
|
|
(2)
|
Net income for Griffith for the six months ended June 30, 2011 includes net income from discontinued operations of $322.
|
|
(3)
|
Net loss for Other Businesses and Investments for the six months ended June 30, 2011 includes net loss from discontinued operations of $117.
|
|
Income Statement Variances
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars In Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
Increase/(Decrease) in
|
||||||||||||||
|
2012
|
2011
|
Amount
|
Percent
|
||||||||||||
Operating Revenues
|
$
|
141,549
|
$
|
148,232
|
$
|
(6,683
|
)
|
(4.5
|
)%
|
|||||||
|
||||||||||||||||
Operating Expenses:
|
||||||||||||||||
Purchased electricity, fuel and natural gas
|
44,854
|
53,085
|
(8,231
|
)
|
(15.5
|
)
|
||||||||||
Depreciation and amortization
|
9,402
|
8,960
|
442
|
4.9
|
||||||||||||
Other operating expenses
|
70,678
|
68,150
|
2,528
|
3.7
|
||||||||||||
Total Operating Expenses
|
124,934
|
130,195
|
(5,261
|
)
|
(4.0
|
)
|
||||||||||
Operating Income
|
16,615
|
18,037
|
(1,422
|
)
|
(7.9
|
)
|
||||||||||
Other Income, net
|
1,745
|
1,501
|
244
|
16.3
|
||||||||||||
Interest Charges
|
7,435
|
7,412
|
23
|
0.3
|
||||||||||||
Income before income taxes
|
10,925
|
12,126
|
(1,201
|
)
|
(9.9
|
)
|
||||||||||
Income Taxes
|
4,254
|
4,755
|
(501
|
)
|
(10.5
|
)
|
||||||||||
Net income
|
$
|
6,671
|
$
|
7,371
|
$
|
(700
|
)
|
(9.5
|
)%
|
|
Six Months Ended
June 30,
|
Increase/(Decrease) in
|
||||||||||||||
|
2012
|
2011
|
Amount
|
Percent
|
||||||||||||
Operating Revenues
|
$
|
326,671
|
$
|
378,284
|
$
|
(51,613
|
)
|
(13.6
|
)%
|
|||||||
|
||||||||||||||||
Operating Expenses:
|
||||||||||||||||
Purchased electricity, fuel and natural gas
|
114,527
|
165,151
|
(50,624
|
)
|
(30.7
|
)
|
||||||||||
Depreciation and amortization
|
18,870
|
17,881
|
989
|
5.5
|
||||||||||||
Other operating expenses
|
144,055
|
150,639
|
(6,584
|
)
|
(4.4
|
)
|
||||||||||
Total Operating Expenses
|
277,452
|
333,671
|
(56,219
|
)
|
(16.8
|
)
|
||||||||||
Operating Income
|
49,219
|
44,613
|
4,606
|
10.3
|
||||||||||||
Other Income, net
|
3,882
|
3,187
|
695
|
21.8
|
||||||||||||
Interest Charges
|
14,690
|
14,785
|
(95
|
)
|
(0.6
|
)
|
||||||||||
Income before income taxes
|
38,411
|
33,015
|
5,396
|
16.3
|
||||||||||||
Income Taxes
|
15,007
|
13,004
|
2,003
|
15.4
|
||||||||||||
Net income
|
$
|
23,404
|
$
|
20,011
|
$
|
3,393
|
17.0
|
%
|
Electric Deliveries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In Gigawatt-Hours)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Actual Deliveries
|
Weather Normalized Deliveries(1)
|
||||||||||||||||||||||||||||||
|
Three Months Ended
|
Three Months Ended
|
||||||||||||||||||||||||||||||
|
June 30,
|
Variation in
|
June 30,
|
Variation in
|
||||||||||||||||||||||||||||
|
2012
|
2011
|
Amount
|
Percent
|
2012
|
2011
|
Amount
|
Percent
|
||||||||||||||||||||||||
Residential
|
435
|
460
|
(25
|
)
|
(5
|
)%
|
449
|
455
|
(6
|
)
|
(1
|
)%
|
||||||||||||||||||||
Commercial
|
459
|
467
|
(8
|
)
|
(2
|
)
|
458
|
462
|
(4
|
)
|
(1
|
)
|
||||||||||||||||||||
Industrial and other
|
276
|
279
|
(3
|
)
|
(1
|
)
|
275
|
279
|
(4
|
)
|
(1
|
)
|
||||||||||||||||||||
Total Deliveries
|
1,170
|
1,206
|
(36
|
)
|
(3
|
)%
|
1,182
|
1,196
|
(14
|
)
|
(1
|
)%
|
|
Actual Deliveries
|
Weather Normalized Deliveries(1)
|
||||||||||||||||||||||||||||||
|
Six Months Ended
|
Six Months Ended
|
||||||||||||||||||||||||||||||
|
June 30,
|
Variation in
|
June 30,
|
Variation in
|
||||||||||||||||||||||||||||
|
2012
|
2011
|
Amount
|
Percent
|
2012
|
2011
|
Amount
|
Percent
|
||||||||||||||||||||||||
Residential
|
983
|
1,082
|
(99
|
)
|
(9
|
)%
|
1,035
|
1,065
|
(30
|
)
|
(3
|
)%
|
||||||||||||||||||||
Commercial
|
933
|
974
|
(41
|
)
|
(4
|
)
|
936
|
967
|
(31
|
)
|
(3
|
)
|
||||||||||||||||||||
Industrial and other
|
532
|
539
|
(7
|
)
|
(1
|
)
|
531
|
539
|
(8
|
)
|
(1
|
)
|
||||||||||||||||||||
Total Deliveries
|
2,448
|
2,595
|
(147
|
)
|
(6
|
)%
|
2,502
|
2,571
|
(69
|
)
|
(3
|
)%
|
(1)
|
Central Hudson uses an internal analysis based on historical weather data to remove the estimated impacts of weather on delivery volumes.
|
Natural Gas Deliveries
|
|
|
|
|
|
|
|
|
|
|
||||||
(In Million Cubic Feet)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Actual Deliveries
|
Weather Normalized Deliveries(1)
|
||||||||||||||||||||||||||||||
|
Three Months Ended
|
Three Months Ended
|
||||||||||||||||||||||||||||||
|
June 30,
|
Variation in
|
June 30,
|
Variation in
|
||||||||||||||||||||||||||||
|
2012
|
2011
|
Amount
|
Percent
|
2012
|
2011
|
Amount
|
Percent
|
||||||||||||||||||||||||
Residential
|
1,005
|
1,265
|
(260
|
)
|
(21
|
)%
|
1,361
|
1,355
|
6
|
-
|
%
|
|||||||||||||||||||||
Commercial
|
991
|
1,182
|
(191
|
)
|
(16
|
)
|
1,258
|
1,273
|
(15
|
)
|
(1
|
)
|
||||||||||||||||||||
Industrial and other
|
54
|
79
|
(25
|
)
|
(32
|
)
|
72
|
85
|
(13
|
)
|
(15
|
)
|
||||||||||||||||||||
Total Deliveries
|
2,050
|
2,526
|
(476
|
)
|
(19
|
)%
|
2,691
|
2,713
|
(22
|
)
|
(1
|
)%
|
|
Actual Deliveries
|
Weather Normalized Deliveries(1)
|
||||||||||||||||||||||||||||||
|
Six Months Ended
|
Six Months Ended
|
||||||||||||||||||||||||||||||
|
June 30,
|
Variation in
|
June 30,
|
Variation in
|
||||||||||||||||||||||||||||
|
2012
|
2011
|
Amount
|
Percent
|
2012
|
2011
|
Amount
|
Percent
|
||||||||||||||||||||||||
Residential
|
3,099
|
4,045
|
(946
|
)
|
(23
|
)%
|
3,908
|
3,975
|
(67
|
)
|
(2
|
)%
|
||||||||||||||||||||
Commercial
|
3,249
|
4,087
|
(838
|
)
|
(21
|
)
|
3,938
|
4,050
|
(112
|
)
|
(3
|
)
|
||||||||||||||||||||
Industrial and other
|
201
|
293
|
(92
|
)
|
(31
|
)
|
250
|
289
|
(39
|
)
|
(13
|
)
|
||||||||||||||||||||
Total Deliveries
|
6,549
|
8,425
|
(1,876
|
)
|
(22
|
)%
|
8,096
|
8,314
|
(218
|
)
|
(3
|
)%
|
(1)
|
Central Hudson uses an internal analysis based on historical weather data to remove the estimated impacts of weather on delivery volumes.
|
Change in Central Hudson Revenues - Electric
|
|
|
|
|
|
|
|
|
|
|
|||||||||
(In Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||||||||||
|
June 30,
|
Increase /
|
June 30,
|
Increase /
|
||||||||||||||||||||
|
2012
|
2011
|
(Decrease)
|
2012
|
2011
|
(Decrease)
|
||||||||||||||||||
Revenues with Matching Expense Offsets:(1)
|
||||||||||||||||||||||||
Energy cost adjustment
|
$
|
36,299
|
$
|
36,668
|
$
|
(369
|
)
|
$
|
80,219
|
$
|
105,939
|
$
|
(25,720
|
)
|
||||||||||
Sales to others for resale
|
1,065
|
1,127
|
(62
|
)
|
2,204
|
2,124
|
80
|
|||||||||||||||||
Other revenues with matching offsets
|
19,399
|
19,936
|
(537
|
)
|
40,298
|
42,484
|
(2,186
|
)
|
||||||||||||||||
Subtotal
|
56,763
|
57,731
|
(968
|
)
|
122,721
|
150,547
|
(27,826
|
)
|
||||||||||||||||
|
||||||||||||||||||||||||
Revenues Impacting Earnings:
|
||||||||||||||||||||||||
Customer sales
|
53,892
|
52,689
|
1,203
|
112,023
|
113,387
|
(1,364
|
)
|
|||||||||||||||||
RDM and other regulatory mechanisms
|
2,846
|
1,711
|
1,135
|
5,748
|
122
|
5,626
|
||||||||||||||||||
Pole attachments and other rents
|
1,184
|
973
|
211
|
2,294
|
1,905
|
389
|
||||||||||||||||||
Finance charges
|
724
|
837
|
(113
|
)
|
1,472
|
1,714
|
(242
|
)
|
||||||||||||||||
Other revenues
|
20
|
294
|
(274
|
)
|
443
|
1,130
|
(687
|
)
|
||||||||||||||||
Subtotal
|
58,666
|
56,504
|
2,162
|
121,980
|
118,258
|
3,722
|
||||||||||||||||||
|
||||||||||||||||||||||||
Total Electric Revenues
|
$
|
115,429
|
$
|
114,235
|
$
|
1,194
|
$
|
244,701
|
$
|
268,805
|
$
|
(24,104
|
)
|
|||||||||||
|
(1)
|
Revenues with matching offsets do not affect earnings since they offset related costs, the most significant being energy cost adjustment revenues, which provide for the recovery of purchased electricity costs. Other related costs include authorized business expenses recovered through rates and the cost of special programs authorized by the PSC and funded with certain available credits. Changes in revenues from electric sales to other entities for resale also do not affect earnings since any related profits or losses are returned or charged, respectively, to customers.
|
Change in Central Hudson Revenues - Natural Gas
|
|
|
|
|
|
|
|||||||||||||
(In Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||||||||||
|
June 30,
|
Increase /
|
June 30,
|
Increase /
|
||||||||||||||||||||
|
2012
|
2011
|
(Decrease)
|
2012
|
2011
|
(Decrease)
|
||||||||||||||||||
Revenues with Matching Expense Offsets:(1)
|
||||||||||||||||||||||||
Energy cost adjustment
|
$
|
5,357
|
$
|
13,229
|
$
|
(7,872
|
)
|
$
|
21,956
|
$
|
45,468
|
$
|
(23,512
|
)
|
||||||||||
Sales to others for resale
|
2,203
|
2,119
|
84
|
10,423
|
11,816
|
(1,393
|
)
|
|||||||||||||||||
Other revenues with matching offsets
|
4,325
|
5,008
|
(683
|
)
|
11,847
|
14,809
|
(2,962
|
)
|
||||||||||||||||
Subtotal
|
11,885
|
20,356
|
(8,471
|
)
|
44,226
|
72,093
|
(27,867
|
)
|
||||||||||||||||
|
||||||||||||||||||||||||
Revenues Impacting Earnings:
|
||||||||||||||||||||||||
Customer sales
|
11,510
|
12,572
|
(1,062
|
)
|
31,821
|
37,379
|
(5,558
|
)
|
||||||||||||||||
RDM and other regulatory mechanisms
|
1,733
|
190
|
1,543
|
3,678
|
(2,107
|
)
|
5,785
|
|||||||||||||||||
Interruptible profits
|
623
|
630
|
(7
|
)
|
1,286
|
1,294
|
(8
|
)
|
||||||||||||||||
Finance charges
|
241
|
362
|
(121
|
)
|
508
|
695
|
(187
|
)
|
||||||||||||||||
Other revenues
|
128
|
(113
|
)
|
241
|
451
|
125
|
326
|
|||||||||||||||||
Subtotal
|
14,235
|
13,641
|
594
|
37,744
|
37,386
|
358
|
||||||||||||||||||
|
||||||||||||||||||||||||
Total Natural Gas Revenues
|
$
|
26,120
|
$
|
33,997
|
$
|
(7,877
|
)
|
$
|
81,970
|
$
|
109,479
|
$
|
(27,509
|
)
|
(1)
|
Revenues with matching offsets do not affect earnings since they offset related costs, the most significant being energy cost adjustment revenues, which provide for the recovery of purchased natural gas costs. Other related costs include authorized business expenses recovered through rates and the cost of special programs authorized by the PSC and funded with certain available credits. For natural gas sales to other entities for resale, 85% of such profits are returned to customers.
|
Change in Central Hudson Operating Expenses
|
|
|
|
|
|
|
|
|
|
|
||||||||
(In Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||||||||||
|
June 30,
|
Increase /
|
June 30,
|
Increase /
|
||||||||||||||||||||
|
2012
|
2011
|
(Decrease)
|
2012
|
2011
|
(Decrease)
|
||||||||||||||||||
Expenses Currently Matched to Revenues:(1)
|
||||||||||||||||||||||||
Purchased electricity
|
$
|
37,364
|
$
|
37,795
|
$
|
(431
|
)
|
$
|
82,423
|
$
|
108,063
|
$
|
(25,640
|
)
|
||||||||||
Purchased natural gas
|
7,560
|
15,348
|
(7,788
|
)
|
32,379
|
57,284
|
(24,905
|
)
|
||||||||||||||||
Temporary State Assessment
|
4,482
|
4,725
|
(243
|
)
|
10,242
|
11,270
|
(1,028
|
)
|
||||||||||||||||
Pension
|
5,588
|
6,377
|
(789
|
)
|
12,655
|
14,496
|
(1,841
|
)
|
||||||||||||||||
OPEB
|
1,545
|
1,528
|
17
|
3,498
|
3,478
|
20
|
||||||||||||||||||
NYS energy programs
|
5,952
|
6,363
|
(411
|
)
|
12,463
|
14,960
|
(2,497
|
)
|
||||||||||||||||
MGP site remediations
|
1,076
|
1,057
|
19
|
2,308
|
2,273
|
35
|
||||||||||||||||||
Other matched expenses
|
5,081
|
4,894
|
187
|
10,979
|
10,816
|
163
|
||||||||||||||||||
Subtotal
|
68,648
|
78,087
|
(9,439
|
)
|
166,947
|
222,640
|
(55,693
|
)
|
||||||||||||||||
|
||||||||||||||||||||||||
Other Expense Variations:
|
||||||||||||||||||||||||
Tree trimming
|
3,682
|
4,679
|
(997
|
)
|
7,203
|
10,500
|
(3,297
|
)
|
||||||||||||||||
Other distribution maintenance
|
3,127
|
1,869
|
1,258
|
4,987
|
3,459
|
1,528
|
||||||||||||||||||
Property and school taxes(2)
|
8,807
|
8,086
|
721
|
18,937
|
17,457
|
1,480
|
||||||||||||||||||
Weather related service restoration
|
2,638
|
1,205
|
1,433
|
4,077
|
6,175
|
(2,098
|
)
|
|||||||||||||||||
Depreciation
|
9,402
|
8,960
|
442
|
18,870
|
17,881
|
989
|
||||||||||||||||||
Uncollectible expense
|
1,206
|
1,270
|
(64
|
)
|
3,331
|
3,346
|
(15
|
)
|
||||||||||||||||
Purchased natural gas incentive arrangements
|
(70
|
)
|
(58
|
)
|
(12
|
)
|
(275
|
)
|
(196
|
)
|
(79
|
)
|
||||||||||||
Other expenses
|
27,494
|
26,097
|
1,397
|
53,375
|
52,409
|
966
|
||||||||||||||||||
Subtotal
|
56,286
|
52,108
|
4,178
|
110,505
|
111,031
|
(526
|
)
|
|||||||||||||||||
Total Operating Expenses
|
$
|
124,934
|
$
|
130,195
|
$
|
(5,261
|
)
|
$
|
277,452
|
$
|
333,671
|
$
|
(56,219
|
)
|
(1)
|
Includes expenses that, in accordance with the 2010 Rate Order, are adjusted in the current period to equal the revenues earned for the applicable expenses.
|
(2)
|
In accordance with the 2010 Rate Order, Central Hudson is authorized to defer 90% of any difference between actual property tax expense and the amounts provided in rates for each Rate Year.
|
Income Statement Variances
|
|
|
|
|||||||||
(Dollars In Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
Increase/(Decrease) in
|
||||||||||||||
|
2012
|
2011
|
Amount
|
Percent
|
||||||||||||
Operating Revenues
|
$
|
197,570
|
$
|
207,067
|
$
|
(9,497
|
)
|
(4.6
|
)%
|
|||||||
Operating Expenses:
|
||||||||||||||||
Purchased electricity, fuel, natural gas and petroleum
|
90,278
|
101,313
|
(11,035
|
)
|
(10.9
|
)
|
||||||||||
Depreciation and amortization
|
10,543
|
10,101
|
442
|
4.4
|
||||||||||||
Merger related costs
|
3,243
|
-
|
3,243
|
100.0
|
||||||||||||
Other operating expenses
|
82,156
|
79,709
|
2,447
|
3.1
|
||||||||||||
Total Operating Expenses
|
186,220
|
191,123
|
(4,903
|
)
|
(2.6
|
)
|
||||||||||
Operating Income
|
11,350
|
15,944
|
(4,594
|
)
|
(28.8
|
)
|
||||||||||
Other Income (Deductions), net
|
1,752
|
1,332
|
420
|
31.5
|
||||||||||||
Interest Charges
|
7,922
|
8,264
|
(342
|
)
|
(4.1
|
)
|
||||||||||
Income before income taxes, non-controlling interest and preferred dividends of subsidiary
|
5,180
|
9,012
|
(3,832
|
)
|
(42.5
|
)
|
||||||||||
Income Taxes
|
3,026
|
2,905
|
121
|
4.2
|
||||||||||||
Net income from continuing operations
|
2,154
|
6,107
|
(3,953
|
)
|
(64.7
|
)
|
||||||||||
Net income from discontinued operations, net of tax
|
-
|
90
|
(90
|
)
|
(100.0
|
)
|
||||||||||
Dividends declared on Preferred Stock of subsidiary
|
176
|
242
|
(66
|
)
|
(27.3
|
)
|
||||||||||
Preferred Stock Redemption Premium
|
342
|
-
|
342
|
100.0
|
||||||||||||
Net income attributable to CH Energy Group
|
$
|
1,636
|
$
|
5,955
|
$
|
(4,319
|
)
|
(72.5
|
)%
|
|
Six Months Ended June 30,
|
Increase/(Decrease) in
|
||||||||||||||
|
2012
|
2011
|
Amount
|
Percent
|
||||||||||||
Operating Revenues
|
$
|
471,642
|
$
|
534,039
|
$
|
(62,397
|
)
|
(11.7
|
)%
|
|||||||
Operating Expenses:
|
||||||||||||||||
Purchased electricity, fuel, natural gas and petroleum
|
230,256
|
289,145
|
(58,889
|
)
|
(20.4
|
)
|
||||||||||
Depreciation and amortization
|
21,167
|
20,186
|
981
|
4.9
|
||||||||||||
Merger related costs
|
8,462
|
-
|
8,462
|
100.0
|
||||||||||||
Other operating expenses
|
168,106
|
174,762
|
(6,656
|
)
|
(3.8
|
)
|
||||||||||
Total Operating Expenses
|
427,991
|
484,093
|
(56,102
|
)
|
(11.6
|
)
|
||||||||||
Operating Income
|
43,651
|
49,946
|
(6,295
|
)
|
(12.6
|
)
|
||||||||||
Other Income (Deductions), net
|
3,847
|
3,241
|
606
|
18.7
|
||||||||||||
Interest Charges
|
15,724
|
16,485
|
(761
|
)
|
(4.6
|
)
|
||||||||||
Income before income taxes, non-controlling interest and preferred dividends of subsidiary
|
31,774
|
36,702
|
(4,928
|
)
|
(13.4
|
)
|
||||||||||
Income Taxes
|
14,797
|
13,520
|
1,277
|
9.4
|
||||||||||||
Net income from continuing operations
|
16,977
|
23,182
|
(6,205
|
)
|
(26.8
|
)
|
||||||||||
Net income from discontinued operations, net of tax
|
-
|
205
|
(205
|
)
|
(100.0
|
)
|
||||||||||
Dividends declared on Preferred Stock of subsidiary
|
418
|
485
|
(67
|
)
|
(13.8
|
)
|
||||||||||
Preferred Stock Redemption Premium
|
342
|
-
|
342
|
100.0
|
||||||||||||
Net income attributable to CH Energy Group
|
$
|
16,217
|
$
|
22,902
|
$
|
(6,685
|
)
|
(29.2
|
)%
|
Actual & Weather Normalized Deliveries
|
|
|
|
|
|
|
|
|
|||||||||||
(In Thousands of Gallons)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Actual Deliveries
|
Weather Normalized Deliveries(1)
|
||||||||||||||||||||||||||||||
|
Three Months Ended
June 30,
|
Increase /
(Decrease) in
|
Three Months Ended
June 30,
|
Increase /
(Decrease) in
|
||||||||||||||||||||||||||||
|
2012
|
2011
|
Amount
|
Percent
|
2012
|
2011
|
Amount
|
Percent
|
||||||||||||||||||||||||
Heating Oil:
|
||||||||||||||||||||||||||||||||
Base company volume(2)
|
3,006
|
3,240
|
(234
|
)
|
(7
|
)%
|
3,987
|
3,332
|
655
|
20
|
% | |||||||||||||||||||||
Acquisitions volume
|
60
|
10
|
50
|
500
|
80
|
21
|
59
|
281
|
||||||||||||||||||||||||
Total Heating Oil
|
3,066
|
3,250
|
(184
|
)
|
(6
|
)
|
4,067
|
3,353
|
714
|
21
|
||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Motor Fuels:
|
||||||||||||||||||||||||||||||||
Base company volume(2)
|
10,980
|
11,113
|
(133
|
)
|
(1
|
)
|
10,980
|
11,113
|
(133
|
)
|
(1
|
)
|
||||||||||||||||||||
Acquisitions volume
|
830
|
901
|
(71
|
)
|
(8
|
)
|
830
|
901
|
(71
|
)
|
(8
|
)
|
||||||||||||||||||||
Total Motor Fuels
|
11,810
|
12,014
|
(204
|
)
|
(2
|
)
|
11,810
|
12,014
|
(204
|
)
|
(2
|
)
|
||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Propane and Other:
|
||||||||||||||||||||||||||||||||
Base company volume(2)
|
93
|
120
|
(27
|
)
|
(23
|
)
|
118
|
123
|
(5
|
)
|
(4
|
)
|
||||||||||||||||||||
Total Propane and Other
|
93
|
120
|
(27
|
)
|
(23
|
)
|
118
|
123
|
(5
|
)
|
(4
|
)
|
||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Total:
|
||||||||||||||||||||||||||||||||
Base company volume(2)
|
14,079
|
14,473
|
(394
|
)
|
(3
|
)
|
15,085
|
14,568
|
517
|
4
|
||||||||||||||||||||||
Acquisitions volume
|
890
|
911
|
(21
|
)
|
(2
|
)
|
910
|
922
|
(12
|
)
|
(1
|
)
|
||||||||||||||||||||
Total
|
14,969
|
15,384
|
(415
|
)
|
(3
|
)%
|
15,995
|
15,490
|
505
|
3
|
% |
(1)
|
Griffith uses an internal analysis based on historical weather data to remove the estimated impacts of weather on delivery volumes.
|
|
(2)
|
For the purpose of this chart, "Base company" excludes any impact from acquisitions made by Griffith in 2012 and 2011.
|
|
Actual & Weather Normalized Deliveries
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
(In Thousands of Gallons)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Actual Deliveries
|
Weather Normalized Deliveries(1)
|
||||||||||||||||||||||||||||||
|
Six Months Ended
June 30,
|
Increase /
(Decrease) in
|
Six Months Ended
June 30,
|
Increase /
(Decrease) in
|
||||||||||||||||||||||||||||
|
2012
|
2011
|
Amount
|
Percent
|
2012
|
2011
|
Amount
|
Percent
|
||||||||||||||||||||||||
Heating Oil:
|
||||||||||||||||||||||||||||||||
Base company volume(2)
|
14,011
|
19,111
|
(5,100
|
)
|
(27
|
)%
|
18,311
|
19,116
|
(805
|
)
|
(4
|
)%
|
||||||||||||||||||||
Acquisitions volume
|
433
|
148
|
285
|
193
|
567
|
149
|
418
|
281
|
||||||||||||||||||||||||
Total Heating Oil
|
14,444
|
19,259
|
(4,815
|
)
|
(25
|
)
|
18,878
|
19,265
|
(387
|
)
|
(2
|
)
|
||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Motor Fuels:
|
||||||||||||||||||||||||||||||||
Base company volume(2)
|
20,821
|
21,168
|
(347
|
)
|
(2
|
)
|
20,821
|
21,167
|
(346
|
)
|
(2
|
)
|
||||||||||||||||||||
Acquisitions volume
|
1,425
|
1,368
|
57
|
4
|
1,425
|
1,368
|
57
|
4
|
||||||||||||||||||||||||
Total Motor Fuels
|
22,246
|
22,536
|
(290
|
)
|
(1
|
)
|
22,246
|
22,535
|
(289
|
)
|
(1
|
)
|
||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Propane and Other:
|
||||||||||||||||||||||||||||||||
Base company volume(2)
|
429
|
634
|
(205
|
)
|
(32
|
)
|
545
|
634
|
(89
|
)
|
(14
|
)
|
||||||||||||||||||||
Total Propane and Other
|
429
|
634
|
(205
|
)
|
(32
|
)
|
545
|
634
|
(89
|
)
|
(14
|
)
|
||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Total:
|
||||||||||||||||||||||||||||||||
Base company volume(2)
|
35,261
|
40,913
|
(5,652
|
)
|
(14
|
)
|
39,677
|
40,917
|
(1,240
|
)
|
(3
|
)
|
||||||||||||||||||||
Acquisitions volume
|
1,858
|
1,516
|
342
|
23
|
1,992
|
1,517
|
475
|
31
|
||||||||||||||||||||||||
Total
|
37,119
|
42,429
|
(5,310
|
)
|
(13
|
)%
|
41,669
|
42,434
|
(765
|
)
|
(2
|
)%
|
(1)
|
Griffith uses an internal analysis based on historical weather data to remove the estimated impacts of weather on delivery volumes.
|
|
(2)
|
For the purpose of this chart, "Base company" excludes any impact from acquisitions made by Griffith in 2012 and 2011.
|
|
Actual and Weather Normalized Delivery Volumes as % of Total Volumes
|
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
||||||||||||||||||||||||||||||
|
2012
|
2011
|
2012
|
2011
|
||||||||||||||||||||||||||||
|
Actual
|
Weather
Normalized
|
Actual
|
Weather
Normalized
|
Actual
|
Weather
Normalized
|
Actual
|
Weather
Normalized
|
||||||||||||||||||||||||
Heating Oil:
|
||||||||||||||||||||||||||||||||
Base company
|
20
|
%
|
25
|
%
|
21
|
%
|
22
|
%
|
38
|
%
|
44
|
%
|
45
|
%
|
45
|
%
|
||||||||||||||||
Acquisitions
|
-
|
%
|
1
|
%
|
-
|
%
|
-
|
%
|
1
|
%
|
2
|
%
|
-
|
%
|
-
|
%
|
||||||||||||||||
Motor Fuels:
|
||||||||||||||||||||||||||||||||
Base company
|
73
|
%
|
68
|
%
|
72
|
%
|
71
|
%
|
56
|
%
|
50
|
%
|
50
|
%
|
50
|
%
|
||||||||||||||||
Acquisitions
|
6
|
%
|
5
|
%
|
6
|
%
|
6
|
%
|
4
|
%
|
3
|
%
|
3
|
%
|
3
|
%
|
||||||||||||||||
Propane and Other:
|
||||||||||||||||||||||||||||||||
Base company
|
1
|
%
|
1
|
%
|
1
|
%
|
1
|
%
|
1
|
%
|
1
|
%
|
2
|
%
|
2
|
%
|
||||||||||||||||
Total
|
100
|
%
|
100
|
%
|
100
|
%
|
100
|
%
|
100
|
%
|
100
|
%
|
100
|
%
|
100
|
%
|
Gross Profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A breakdown of Griffith's gross profit by product and service line for the three and six months ended June 30, 2012 and 2011 are illustrated below (Dollars in Thousands):
|
|
Three Months Ended June 30,
|
|||||||||||||||
Product and Service Line
|
2012
|
2011
|
||||||||||||||
Heating oil - Base company
|
$
|
2,254
|
25
|
%
|
$
|
2,305
|
25
|
%
|
||||||||
Heating oil - Acquisitions
|
36
|
-
|
%
|
5
|
-
|
%
|
||||||||||
Motor fuels - Base company
|
2,745
|
30
|
%
|
2,811
|
31
|
%
|
||||||||||
Motor fuels - Acquisitions
|
255
|
3
|
%
|
235
|
3
|
%
|
||||||||||
Propane and Other - Base company
|
135
|
2
|
%
|
159
|
2
|
%
|
||||||||||
Service and installations - Base company
|
3,236
|
36
|
%
|
3,251
|
36
|
%
|
||||||||||
Service and installations - Acquisitions
|
121
|
1
|
%
|
-
|
-
|
%
|
||||||||||
Other - Base company
|
290
|
3
|
%
|
288
|
3
|
%
|
||||||||||
Other - Acquisitions
|
-
|
-
|
%
|
(2
|
)
|
-
|
%
|
|||||||||
Total
|
$
|
9,072
|
100
|
%
|
$
|
9,052
|
100
|
%
|
|
Six Months Ended June 30,
|
|||||||||||||||
Product and Service Line
|
2012
|
2011
|
||||||||||||||
Heating oil - Base Company
|
$
|
13,099
|
50
|
%
|
$
|
15,660
|
54
|
%
|
||||||||
Heating oil - Acquisitions
|
316
|
1
|
%
|
73
|
-
|
%
|
||||||||||
Motor fuels - Base Company
|
5,003
|
19
|
%
|
5,110
|
18
|
%
|
||||||||||
Motor fuels - Acquisitions
|
436
|
2
|
%
|
369
|
1
|
%
|
||||||||||
Propane and Other - Base Company
|
626
|
2
|
%
|
875
|
3
|
%
|
||||||||||
Service and installations - Base Company
|
6,185
|
23
|
%
|
6,202
|
22
|
%
|
||||||||||
Service and installations - Acquisitions
|
198
|
1
|
%
|
1
|
-
|
%
|
||||||||||
Other - Base Company
|
562
|
2
|
%
|
580
|
2
|
%
|
||||||||||
Total
|
$
|
26,425
|
100
|
%
|
$
|
28,870
|
100
|
%
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in Griffith Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
(In Thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
Six Months Ended
|
||||||||||||||||||||||
|
June 30,
|
Increase /
|
June 30,
|
Increase /
|
||||||||||||||||||||
|
2012
|
2011
|
(Decrease)
|
2012
|
2011
|
(Decrease)
|
||||||||||||||||||
Revenues:
|
||||||||||||||||||||||||
Heating oil(1)
|
$
|
11,584
|
$
|
12,359
|
$
|
(775
|
)
|
$
|
56,181
|
$
|
69,626
|
$
|
(13,445
|
)
|
||||||||||
Heating oil - Acquisitions
|
221
|
38
|
183
|
1,693
|
498
|
1,195
|
||||||||||||||||||
Motor Fuels(1)
|
36,002
|
37,885
|
(1,883
|
)
|
69,829
|
68,956
|
873
|
|||||||||||||||||
Motor Fuels - Acquisitions
|
2,737
|
3,053
|
(316
|
)
|
4,811
|
4,563
|
248
|
|||||||||||||||||
Other(1)
|
595
|
694
|
(99
|
)
|
3,257
|
3,018
|
239
|
|||||||||||||||||
Service Revenues(1)
|
4,686
|
4,806
|
(120
|
)
|
8,884
|
9,093
|
(209
|
)
|
||||||||||||||||
Service Revenues - Acquisitions
|
196
|
-
|
196
|
316
|
1
|
315
|
||||||||||||||||||
Total
|
$
|
56,021
|
$
|
58,835
|
$
|
(2,814
|
)
|
$
|
144,971
|
$
|
155,755
|
$
|
(10,784
|
)
|
(1)
|
These line items exclude the impact of acquisitions made by Griffith in 2012 and 2011 for the analysis which compares the three and six months ended June 30, 2012 to 2011.
|
|
Note: The above chart reflects revenues net of weather hedging contracts.
|
Cash Flow Summary - CH Energy Group and Central Hudson
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in CH Energy Group's and Central Hudson's cash and cash equivalents resulting from operating, investing, and financing activities are summarized in the following chart (In Thousands):
|
|
CH Energy Group
|
Central Hudson
|
||||||||||||||
|
Six Months Ended
June 30,
|
Six Months Ended
June 30,
|
||||||||||||||
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
Net Cash Provided By/(Used In):
|
||||||||||||||||
Operating Activities
|
$
|
71,213
|
$
|
75,527
|
$
|
65,155
|
$
|
82,081
|
||||||||
Investing Activities
|
(56,923
|
)
|
(36,401
|
)
|
(56,049
|
)
|
(37,989
|
)
|
||||||||
Financing Activities
|
(17,979
|
)
|
(24,751
|
)
|
(8,961
|
)
|
(22,718
|
)
|
||||||||
Cash Included in Current Assets Held for Sale
|
-
|
(1,602
|
)
|
-
|
-
|
|||||||||||
Net change for the period
|
(3,689
|
) |
12,773
|
145
|
21,374
|
|||||||||||
Balance at beginning of period
|
15,281
|
29,420
|
2,521
|
9,622
|
||||||||||||
Balance at end of period
|
$
|
11,592
|
$
|
42,193
|
$
|
2,666
|
$
|
30,996
|
·
|
On June 29, 2012, the ALJ issued a Ruling on Schedule and Procedure establishing the following schedule:
|
-
|
Staff and Intervenor Initial Filings: August 31, 2012
|
-
|
Reply Filings, all parties: September 21, 2012
|
-
|
Statements of Material Issues of Fact Requiring Hearing: October 5, 2012
|
·
|
On July 9, 2012 PSC Trial Staff filed a Motion for Reconsideration of Ruling on Schedule and Procedure.
|
·
|
On July 10, 2012 Multiple Intervenors submitted a letter supporting Staff.
|
·
|
On July 18, 2012 Public Utility Law Project submitted a letter supporting Staff.
|
·
|
On July 24, 2012 Petitioners filed an Opposition to Staff Motion for Reconsideration.
|
·
|
On July 31, 2012, the ALJ issued a Ruling on Motion for Consideration adopting a revised schedule for the proceeding as follows:
|
-
|
Staff and Intervenor Initial Filings: October 12, 2012
|
-
|
Reply Filings, all parties: November 2, 2012
|
-
|
Statements of Material Issues of Fact Requiring Hearing: November 16, 2012
|
·
|
Advanced Metering Infrastructure
|
·
|
The American Recovery and Reinvestment Act of 2009
|
·
|
Management Audit
|
·
|
SIR Proceeding
|
·
|
Energy Efficiency Portfolio Standard and State Energy Planning
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table provides a summary of shares repurchased by CH Energy Group for the quarter ended June 30, 2012:
|
|
|
|
|
Total Number of Shares Purchased
|
|
Average Price Paid per Share
|
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
|
|
Maximum Number of Shares that May Yet be Purchased Under the Plans or Programs(1)
|
|
April 1-30, 2012
|
|
-
|
|
$
|
-
|
|
-
|
|
1,051,324
|
||
May 1-31, 2012
|
|
-
|
|
$
|
-
|
|
-
|
|
1,051,324
|
||
June 1-30, 2012
|
|
-
|
|
$
|
-
|
|
-
|
|
1,051,324
|
||
Total
|
|
|
-
|
|
$
|
-
|
1
|
-
|
|
|
(1)
|
On July 31, 2007, the Board of Directors authorized the repurchase of up to 2,000,000 shares or approximately 13% of CH Energy Group's outstanding common stock on that date, from time to time, over the five year period ending July 31, 2012.
|
|
|
CH ENERGY GROUP, INC.
|
|
|
(Registrant)
|
|
|
|
|
|
|
|
|
|
|
By:
|
/s/ Kimberly J. Wright
|
|
|
Kimberly J. Wright
|
|
|
Vice President - Accounting and Controller
|
|
|
|
|
|
|
|
|
CENTRAL HUDSON GAS & ELECTRIC CORPORATION
|
|
|
(Co-Registrant)
|
|
|
|
|
|
|
|
|
|
|
By:
|
/s/ Kimberly J. Wright
|
|
|
Kimberly J. Wright
|
|
|
Controller
|
Exhibit No.
(Regulation
S-K Item 601
Designation)
|
|
Exhibit Description
|
|
|
|
|
Rule 13a-14(a)/15d-14(a) Certification by Mr. Lant.
|
|
|
|
|
|
Rule 13a-14(a)/15d-14(a) Certification by Mr. Capone.
|
|
|
|
|
|
Rule 13a-14(a)/15d-14(a) Certification by Mr. Lant.
|
|
|
|
|
|
Rule 13a-14(a)/15d-14(a) Certification by Mr. Capone.
|
|
|
|
|
|
Section 1350 Certification by Mr. Lant.
|
|
|
|
|
|
Section 1350 Certification by Mr. Capone.
|
|
|
|
|
|
Section 1350 Certification by Mr. Lant.
|
|
|
|
|
|
Section 1350 Certification by Mr. Capone.
|
|
|
|
|
101.INS
|
|
XBRL Instance Document.
|
|
|
|
101.SCH
|
|
XBRL Taxonomy Extension Schema.
|
|
|
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase.
|
|
|
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase.
|
|
|
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase.
|
|
|
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase.
|