54 Promissory Note of Central Hudson Gas & Electric Corporation, dated June 22, 2007, payable to the order of Citizens Bank, N.A. (Incorporated herein by reference to CH Energy Groups Annual Report on Form 10-K for the year ended December 31, 2007; Exhibit (10)(i)54)

Exhibit 10(i)54

PROMISSORY NOTE

FOR VALUE RECEIVED, the undersigned, Central Hudson Gas & Electric Corporation, a New York corporation (the “Company”), promises to pay to the order of Citizens Bank, N.A. (the “Bank”), on demand, at the principal office of the Bank located 833 Broadway Albany, NY, the principal sum equal to the lesser of (a) 40,000,000.00 or (b) the aggregate unpaid principal amount of all advances (the “Loans”) made to the Company by the Bank hereunder, as reflected on the schedule (the “Schedule”) to this promissory note (this “Note”) or otherwise in accordance with the Bank’s usual practices on the Bank’s loan account records, payable to the Bank on the respective maturity date of each such Loan specified on the Schedule, in lawful money of the United State of America and in immediately available funds, and to pay interest (computed on the bases of a year of 360 days for the actual days elapsed) on the unpaid principal amount of such loans until due, in like funds, at the rate per annum for each such Loan specified on the Schedule. The principal amount of any Loan not paid when due hereunder shall thereafter bear interest at a rate per annum equal to two percent in excess of the rate announced by the Bank from time to time as its “prime” rate. Interest not paid when due shall thereafter bear like interest as the principal to the extent permitted by applicable law.

          Any of the persons authorized to borrow on behalf of the Company (an “Authorized Person”), the names of which shall be communicated by the Company to the Bank in writing, may request a Loan hereunder by telephone which shall be confirmed by the Company in writing the same day via facsimile or electronic mail. In the absence of the Bank’s negligence or willful misconduct, the Company agrees that, in implementing this arrangement, the Bank is authorized to honor requests for Loans which it believes, in good faith, to emanate from Authorized Person acting pursuant to this Note. The Bank shall credit all Loan proceeds to such Company bank account as the Company identifies in writing to the Bank, which account shall be maintained with the Bank.

          The Company hereby irrevocably authorizes the Bank to endorse on the Schedule, or otherwise in accordance with Bank’s usual practices, the amount and maturity date of each Loan made by the Bank to the Company hereunder, the interest rate therefore, the