CH Energy Group Subsidiary To Build And Operate Renewable Energy Plant In Upstate New York

Poughkeepsie, NY - A special purpose subsidiary of CH Energy Group, Inc., CH-Auburn Energy, LLC, has entered into a 15-year contract to supply the City of Auburn, located in Cayuga County, New York, with a portion of its electricity needs by constructing and operating a 3-megawatt electric generating plant in Auburn that will use renewable energy from the municipal landfill and wastewater treatment plant. CH-Auburn will invest up to $9.75M in the project, which will include an anaerobic digester to convert wastewater sludge into usable gas for electric generation and the sale of resulting low-cost electricity to the city.

The electric generating plant will provide enough renewable energy to serve 2,500 homes. The contract will provide the city with energy savings and economic development benefits through lower electric rates. At the end of the 15-year contract, the city will have the opportunity to acquire the plant.

"Officials with the City of Auburn have demonstrated they are forward thinking when it comes to meeting their energy needs, and we're excited about partnering with them. This investment expands upon our growing renewable energy portfolio, which already includes ethanol, wind energy and a biomass plant," said Steven V. Lant, Chairman of the Board, President and Chief Executive Officer of CH Energy Group, Inc. "We're also delighted to work with ECO Technology Solutions, LLC, which has consulted with CH-Auburn and the city to create this unique opportunity."

The plant is slated for construction next spring, and is anticipated to become operational in late 2008. It will be located adjacent to the municipal wastewater treatment plant and landfill, near a technology and business park. Auburn is located about 30 miles west of Syracuse, New York.

SOURCE: CH Energy Group, Inc.