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Quarterly Report Pursuant To Section 13 or 15(d) of the Securities Exchange Act of 1934
FOR THE QUARTERLY PERIOD ENDED
June 30, 2024
OR
☐
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the transition period from
to
Commission
File Number
Exact name of registrant as specified in its charter
and principal executive office address and telephone number
State of
Incorporation
I.R.S. Employer
ID. Number
1-14514
Consolidated Edison, Inc.
New York
13-3965100
4 Irving Place,
New York,
New York
10003
(212)
460-4600
1-01217
Consolidated Edison Company of New York, Inc.
New York
13-5009340
4 Irving Place,
New York,
New York
10003
(212)
460-4600
Securities Registered Pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol
Name of each exchange on which registered
Consolidated Edison, Inc.
ED
New York Stock Exchange
Common Shares ($.10 par value)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Consolidated Edison, Inc. (Con Edison)
Yes
☒
No
☐
Consolidated Edison Company of New York, Inc. (CECONY)
Yes
☒
No
☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Con Edison
Yes
☒
No
☐
CECONY
Yes
☒
No
☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Con Edison
Large accelerated filer
☒
Accelerated filer
☐
Non-accelerated filer
☐
Smaller reporting company
☐
Emerging growth company
☐
CECONY
Large accelerated filer
☐
Accelerated filer
☐
Non-accelerated filer
☒
Smaller reporting company
☐
Emerging growth company
☐
1
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Con Edison
Yes
☐
No
☒
CECONY
Yes
☐
No
☒
As of July 31, 2024, Con Edison had outstanding
346,147,200
Common Shares ($.10 par value). All of the outstanding common equity of CECONY is held by Con Edison.
Filing Format
This Quarterly Report on Form 10-Q is a combined report being filed separately by two different registrants: Consolidated Edison, Inc. (Con Edison) and Consolidated Edison Company of New York, Inc. (CECONY). CECONY is a wholly-owned subsidiary of Con Edison and, as such, the information in this report about CECONY also applies to Con Edison. As used in this report, the term the “Companies” refers to Con Edison and CECONY. However, CECONY makes no representation as to the information contained in this report relating to Con Edison or the subsidiaries of Con Edison other than itself.
2
Glossary of Terms
The following is a glossary of abbreviations or acronyms that are used in the Companies’ SEC reports:
Con Edison Companies
Con Edison
Consolidated Edison, Inc.
CECONY
Consolidated Edison Company of New York, Inc.
Clean Energy Businesses
Con Edison Clean Energy Businesses, Inc., a former subsidiary of Con Edison
Con Edison Transmission
Con Edison Transmission, Inc., together with its subsidiaries
O&R
Orange and Rockland Utilities, Inc.
RECO
Rockland Electric Company
The Companies
Con Edison and CECONY
The Utilities
CECONY and O&R
Regulatory Agencies, Government Agencies and Other Organizations
FASB
Financial Accounting Standards Board
FERC
Federal Energy Regulatory Commission
IRS
Internal Revenue Service
NJBPU
New Jersey Board of Public Utilities
NYISO
New York Independent System Operator
NYPA
New York Power Authority
NYSDEC
New York State Department of Environmental Conservation
NYSDPS
New York State Department of Public Service
NYSPSC
New York State Public Service Commission
OTDA
Office of Temporary and Disability Assistance
SEC
U.S. Securities and Exchange Commission
Accounting
AFUDC
Allowance for Funds Used During Construction
ASC
Accounting Standards Codification Topic
ASU
Accounting Standards Update
GAAP
Generally Accepted Accounting Principles in the United States of America
HLBV
Hypothetical Liquidation at Book Value
NOL
Net Operating Loss
OCI
Other Comprehensive Income
VIE
Variable Interest Entity
3
Environmental
GHG
Greenhouse gases
Superfund
Federal Comprehensive Environmental Response, Compensation and Liability Act of 1980 and similar state statutes
Units of Measure
Dt
Dekatherm
kWh
Kilowatt-hour
MMlb
Million pounds
MW
Megawatt or thousand kilowatts
MWh
Megawatt hour
Other
COVID-19
Coronavirus Di
sease 2019 and any mutations or variants thereof
Second Quarter Financial Statements
Consolidated financial statements included in the Companies' Quarterly Report on Form 10-Q for the quarterly period ended June 30 of the current year
IRA
The federal Inflation Reduction Act, as enacted on August 16, 2022
TCJA
The federal Tax Cuts and Jobs Act of 2017, as enacted on December 22, 2017
This report contains forward-looking statements that are intended to qualify for the safe-harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are statements of future expectations and not facts. Words such as “forecasts,” “expects,” “estimates,” “anticipates,” “intends,” “believes,” “plans,” “will,” “target,” “guidance,” “potential,” "goal," “consider” and similar expressions identify forward-looking statements. The forward-looking statements reflect information available and assumptions at the time the statements are made, and accordingly speak only as of that time. Actual results or developments might differ materially from those included in the forward-looking statements because of various factors such as those identified in reports the Companies have filed with the Securities and Exchange Commission, including, but not limited to:
•
the Companies are extensively regulated and are subject to substantial penalties;
•
the Utilities’ rate plans may not provide a reasonable return;
•
the Companies may be adversely affected by changes to the Utilities’ rate plans;
•
the failure of, or damage to, the Companies’ facilities could adversely affect the Companies;
•
a cyber attack could adversely affect the Companies;
•
the failure of processes and systems, the failure to retain and attract employees and contractors, and their negative performance could adversely affect the Companies;
•
the Companies are exposed to risks from the environmental consequences of their operations, including increased costs related to climate change;
•
Con Edison’s ability to pay dividends or interest depends on dividends from its subsidiaries;
•
changes to tax laws could adversely affect the Companies;
•
the Companies require access to capital markets to satisfy funding requirements;
•
a disruption in the wholesale energy markets, increased commodity costs or failure by an energy supplier or customer could adversely affect the Companies;
•
the Companies face risks related to health epidemics and other outbreaks;
•
the Companies’ strategies may not be effective to address changes in the external business environment;
•
the Companies face risks related to supply chain disruptions and inflation; and
•
the Companies also face other risks that are beyond their control.
This list of factors is not all-inclusive because it is not possible to predict all factors. The Companies assume no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
6
Consolidated
Edison, Inc.
CONSOLIDATED INCOME STATEMENT (UNAUDITED)
For the Three Months Ended June 30,
For the Six Months Ended June 30,
(Millions of Dollars/Except Share Data)
2024
2023
2024
2023
OPERATING REVENUES
Electric
$
2,550
$
2,303
$
5,180
$
4,840
Gas
582
571
1,939
2,001
Steam
88
69
374
375
Non-utility
—
1
2
131
TOTAL OPERATING REVENUES
3,220
2,944
7,495
7,347
OPERATING EXPENSES
Purchased power
556
495
1,199
1,198
Fuel
15
18
103
207
Gas purchased for resale
68
99
335
567
Other operations and maintenance
967
849
1,856
1,744
Depreciation and amortization
512
496
1,051
994
Taxes, other than income taxes
782
716
1,590
1,482
TOTAL OPERATING EXPENSES
2,900
2,673
6,134
6,192
Gain (Loss) on sale of the Clean Energy Businesses
—
13
(
30
)
867
OPERATING INCOME
320
284
1,331
2,022
OTHER INCOME (DEDUCTIONS)
Investment income
11
8
30
16
Other income
155
210
319
414
Allowance for equity funds used during construction
10
6
20
13
Other deductions
(
16
)
(
17
)
(
27
)
(
39
)
TOTAL OTHER INCOME
160
207
342
404
INCOME BEFORE INTEREST AND INCOME TAX EXPENSE
480
491
1,673
2,426
INTEREST EXPENSE (INCOME)
Interest on long-term debt
267
234
522
485
Other interest expense
36
14
83
39
Allowance for borrowed funds used during construction
(
15
)
(
12
)
(
28
)
(
25
)
NET INTEREST EXPENSE
288
236
577
499
INCOME BEFORE INCOME TAX EXPENSE
192
255
1,096
1,927
INCOME TAX EXPENSE (BENEFIT)
(
10
)
29
174
272
NET INCOME
202
226
922
1,655
Loss attributable to non-controlling interest
—
—
—
(
3
)
NET INCOME FOR COMMON STOCK
$
202
$
226
$
922
$
1,658
Net income per common share—basic
$
0.58
$
0.65
$
2.67
$
4.74
Net income per common share—diluted
$
0.58
$
0.65
$
2.66
$
4.72
AVERAGE NUMBER OF SHARES OUTSTANDING—BASIC (IN MILLIONS)
345.9
345.9
345.7
349.8
AVERAGE NUMBER OF SHARES OUTSTANDING—DILUTED (IN MILLIONS)
347.1
347.4
346.9
351.3
The accompanying notes are an integral part of these financial statements.
7
Consolidated Edison, Inc.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)
Three Months Ended June 30,
Six Months Ended June 30,
(Millions of Dollars)
2024
2023
2024
2023
NET INCOME
$
202
$
226
$
922
$
1,655
LOSS ATTRIBUTABLE TO NON-CONTROLLING INTEREST
—
—
—
3
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAXES
Pension and other postretirement benefit plan liability adjustments, net of taxes
—
(
1
)
(
4
)
3
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAXES
—
(
1
)
(
4
)
3
COMPREHENSIVE INCOME
$
202
$
225
$
918
$
1,661
The accompanying notes are an integral part of these financial statements.
8
Consolidated Edison, Inc.
CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
For the Six Months Ended June 30,
(Millions of Dollars)
2024
2023
OPERATING ACTIVITIES
Net income
$
922
$
1,655
PRINCIPAL NON-CASH CHARGES (CREDITS) TO INCOME
Depreciation and amortization
1,051
994
Deferred income taxes
161
(
149
)
Rate case amortization and accruals
115
44
Net derivative losses
—
12
Pre-tax loss (gain) on sale of the Clean Energy Businesses
30
(
867
)
Other non-cash items, net
(
24
)
(
90
)
CHANGES IN ASSETS AND LIABILITIES
Accounts receivable – customers
(
61
)
544
Allowance for uncollectible accounts – customers
74
(
47
)
Materials and supplies, including fuel oil and gas in storage
18
74
Revenue decoupling mechanism receivable
(
46
)
(
106
)
Other receivables and other current assets
167
68
Unbilled revenue and net unbilled revenue deferrals
14
63
Prepayments
32
(
56
)
Accounts payable
(
166
)
(
565
)
Pensions and retiree benefits obligations, net
(
123
)
(
88
)
Pensions and retiree benefits contributions
(
9
)
(
10
)
Accrued taxes
(
14
)
152
Accrued interest
19
(
17
)
Superfund and environmental remediation costs
(
15
)
(
7
)
Distributions from equity investments
2
15
Deferred charges, noncurrent assets, leases, net and other regulatory assets
(
285
)
(
346
)
Deferred credits, noncurrent liabilities and other regulatory liabilities
191
(
162
)
Other current liabilities
(
141
)
53
NET CASH FLOWS FROM OPERATING ACTIVITIES
1,912
1,164
INVESTING ACTIVITIES
Utility construction expenditures
(
2,396
)
(
2,097
)
Cost of removal less salvage
(
214
)
(
196
)
Non-utility construction expenditures
—
(
140
)
Proceeds from sale of the Clean Energy Businesses, net of cash and cash equivalents sold
—
3,927
Other investing activities
(
12
)
(
42
)
NET CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES
(
2,622
)
1,452
FINANCING ACTIVITIES
Net issuance (payment) of short-term debt
164
(
1,087
)
Issuance of long-term debt
1,400
500
Retirement of long-term debt
—
(
60
)
Debt issuance costs
(
23
)
(
4
)
Common stock dividends
(
549
)
(
562
)
Issuance of common shares for stock plans
30
27
Repurchase of common shares
—
(
1,000
)
Distribution to noncontrolling interest
—
(
4
)
NET CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES
1,022
(
2,190
)
CASH, TEMPORARY CASH INVESTMENTS, AND RESTRICTED CASH:
NET CHANGE FOR THE PERIOD
312
426
BALANCE AT BEGINNING OF PERIOD
1,195
1,530
BALANCE AT END OF PERIOD
$
1,507
$
1,956
LESS: CHANGE IN CASH BALANCES HELD FOR SALE
7
1
BALANCE AT END OF PERIOD EXCLUDING HELD FOR SALE
$
1,500
$
1,955
SUPPLEMENTAL DISCLOSURE OF CASH INFORMATION
Cash paid during the period for:
Interest, net of capitalized interest
$
520
$
500
9
Income taxes
$
4
$
221
SUPPLEMENTAL DISCLOSURE OF NON-CASH INFORMATION
Construction expenditures in accounts payable
$
482
$
420
Issuance of common shares for dividend reinvestment
$
25
$
7
Equipment acquired but unpaid as of end of period
$
11
$
17
The accompanying notes are an integral part of these financial statements.
10
Consolidated Edison, Inc.
CONSOLIDATED BALANCE SHEET (UNAUDITED)
(Millions of Dollars)
June 30,
2024
December 31,
2023
ASSETS
CURRENT ASSETS
Cash and temporary cash investments
$
1,500
$
1,189
Accounts receivable – customers, net allowance for uncollectible accounts of $
434
and $
360
in 2024 and 2023, respectively
2,424
2,418
Other receivables, net allowance for uncollectible accounts of $
25
and $
13
in 2024 and 2023, respectively
237
444
Accrued unbilled revenue
683
722
Fuel oil, gas in storage, materials and supplies, at average cost
451
469
Prepayments
438
470
Regulatory assets
167
281
Revenue decoupling mechanism receivable
248
203
Fair value of derivative assets
38
52
Assets held for sale
165
163
Other current assets
136
126
TOTAL CURRENT ASSETS
6,487
6,537
INVESTMENTS
1,081
999
UTILITY PLANT, AT ORIGINAL COST
Electric
40,356
39,071
Gas
14,728
14,318
Steam
3,146
3,085
General
4,693
4,835
TOTAL
62,923
61,309
Less: Accumulated depreciation
15,023
14,157
Net
47,900
47,152
Construction work in progress
2,712
2,442
NET UTILITY PLANT
50,612
49,594
NON-UTILITY PLANT
Non-utility property, net accumulated depreciation of $
24
in 2024 and 2023
12
13
Construction work in progress
1
1
NET PLANT
50,625
49,608
OTHER NONCURRENT ASSETS
Goodwill
408
408
Regulatory assets
5,096
4,607
Pension and retiree benefits
3,353
3,275
Operating lease right-of-use asset
510
533
Fair value of derivative assets
21
48
Other deferred charges and noncurrent assets
339
316
TOTAL OTHER NONCURRENT ASSETS
9,727
9,187
TOTAL ASSETS
$
67,920
$
66,331
The accompanying notes are an integral part of these financial statements.
11
Consolidated Edison, Inc.
CONSOLIDATED BALANCE SHEET (UNAUDITED)
(Millions of Dollars)
June 30,
2024
December 31,
2023
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Long-term debt due within one year
$
250
$
250
Notes payable
2,452
2,288
Accounts payable
1,496
1,775
Customer deposits
422
396
Accrued taxes
62
73
Accrued interest
190
170
Accrued wages
128
125
Fair value of derivative liabilities
83
193
Regulatory liabilities
125
145
System benefit charge
450
444
Operating lease liabilities
117
116
Liabilities held for sale
78
76
Other current liabilities
363
411
TOTAL CURRENT LIABILITIES
6,216
6,462
NONCURRENT LIABILITIES
Provision for injuries and damages
185
188
Pensions and retiree benefits
635
592
Superfund and other environmental costs
1,113
1,118
Asset retirement obligations
532
522
Fair value of derivative liabilities
74
121
Deferred income taxes and unamortized investment tax credits
8,389
8,069
Operating lease liabilities
430
429
Regulatory liabilities
5,067
5,328
Other deferred credits and noncurrent liabilities
408
417
TOTAL NONCURRENT LIABILITIES
16,833
16,784
LONG-TERM DEBT
23,311
21,927
COMMITMENTS, CONTINGENCIES, AND GUARANTEES (Note B, Note G, and Note H)
COMMON SHAREHOLDERS' EQUITY (See Statement of Common Shareholders' Equity)
21,560
21,158
TOTAL LIABILITIES AND EQUITY
$
67,920
$
66,331
The accompanying notes are an integral part of these financial statements.
12
Consolidated Edison, Inc.
CONSOLIDATED STATEMENT OF EQUITY (UNAUDITED)
(In Millions, except for dividends per share)
Common Stock
Additional
Paid-In
Capital
Retained
Earnings
Treasury Stock
Capital
Stock
Expense
Accumulated
Other
Comprehensive
Income (Loss)
Non-
controlling
Interest
Total
Shares
Amount
Shares
Amount
BALANCE AS OF DECEMBER 31, 2022
355
$
37
$
9,803
$
11,985
23
$(
1,038
)
$(
122
)
$
22
$
202
$
20,889
Net income (loss)
1,433
(
3
)
1,430
Common stock dividends ($
0.81
per share)
(
288
)
(
288
)
Issuance of common shares for stock plans
15
15
Common stock repurchases
(
9
)
(
200
)
9
(
808
)
(
1,008
)
Other comprehensive income
4
4
Distributions to noncontrolling interests
(
4
)
(
4
)
Disposal of the Clean Energy Businesses
(
195
)
(
195
)
BALANCE AS OF MARCH 31, 2023
346
$
37
$
9,618
$
13,130
32
$(
1,846
)
$(
122
)
$
26
$
—
$
20,843
Net income
226
226
Common stock dividends ($
0.81
per share)
(
281
)
(
281
)
Issuance of common shares for stock plans
20
20
Common stock repurchases
(
2
)
169
2
(
171
)
(
2
)
Other comprehensive loss
(
1
)
(
1
)
BALANCE AS OF JUNE 30, 2023
344
$
37
$
9,807
$
13,075
34
$(
2,017
)
$(
122
)
$
25
$
—
$
20,805
BALANCE AS OF DECEMBER 31, 2023
345
$
37
$
9,861
$
13,377
34
$(
2,017
)
$(
122
)
$
22
$
—
$
21,158
Net income
720
720
Common stock dividends ($
0.83
per share)
(
287
)
(
287
)
Issuance of common shares for stock plans
1
1
27
28
Other comprehensive loss
(
4
)
(
4
)
BALANCE AS OF MARCH 31, 2024
346
$
38
$
9,888
$
13,810
34
$(
2,017
)
$(
122
)
$
18
$
—
$
21,615
Net income
202
202
Common stock dividends ($
0.83
per share)
(
287
)
(
287
)
Issuance of common shares for stock plans
30
30
BALANCE AS OF JUNE 30, 2024
346
$
38
$
9,918
$
13,725
34
$(
2,017
)
$(
122
)
$
18
$
—
$
21,560
The accompanying notes are an integral part of these financial statements.
13
Consolidated Edison Company of New York, Inc.
CONSOLIDATED INCOME STATEMENT (UNAUDITED)
For the Three Months Ended June 30,
For the Six Months Ended June 30,
(Millions of Dollars)
2024
2023
2024
2023
OPERATING REVENUES
Electric
$
2,370
$
2,144
$
4,812
$
4,500
Gas
538
531
1,781
1,822
Steam
88
69
374
375
TOTAL OPERATING REVENUES
2,996
2,744
6,967
6,697
OPERATING EXPENSES
Purchased power
498
452
1,076
1,083
Fuel
15
18
103
207
Gas purchased for resale
57
91
292
456
Other operations and maintenance
871
757
1,659
1,507
Depreciation and amortization
482
470
993
943
Taxes, other than income taxes
759
694
1,540
1,430
TOTAL OPERATING EXPENSES
2,682
2,482
5,663
5,626
OPERATING INCOME
314
262
1,304
1,071
OTHER INCOME (DEDUCTIONS)
Investment and other income
147
190
303
376
Allowance for equity funds used during construction
9
5
18
11
Other deductions
(
14
)
(
11
)
(
23
)
(
20
)
TOTAL OTHER INCOME
142
184
298
367
INCOME BEFORE INTEREST AND INCOME TAX EXPENSE
456
446
1,602
1,438
INTEREST EXPENSE (INCOME)
Interest on long-term debt
253
220
495
436
Other interest expense
29
14
71
43
Allowance for borrowed funds used during construction
(
13
)
(
11
)
(
26
)
(
23
)
NET INTEREST EXPENSE
269
223
540
456
INCOME BEFORE INCOME TAX EXPENSE
187
223
1,062
982
INCOME TAX EXPENSE
1
34
182
189
NET INCOME
$
186
$
189
$
880
$
793
The accompanying notes are an integral part of these financial statements.
14
Consolidated Edison Company of New York, Inc.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)
For the Three Months Ended June 30,
For the Six Months Ended June 30,
(Millions of Dollars)
2024
2023
2024
2023
NET INCOME
$
186
$
189
$
880
$
793
OTHER COMPREHENSIVE LOSS, NET OF TAXES
Pension and other postretirement benefit plan liability adjustments, net of taxes
—
—
—
(
1
)
TOTAL OTHER COMPREHENSIVE LOSS, NET OF TAXES
—
—
—
(
1
)
COMPREHENSIVE INCOME
$
186
$
189
$
880
$
792
The accompanying notes are an integral part of these financial statements.
15
Consolidated Edison Company of New York, Inc.
CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
For the Six Months Ended June 30,
(Millions of Dollars)
2024
2023
OPERATING ACTIVITIES
Net income
$
880
$
793
PRINCIPAL NON-CASH CHARGES (CREDITS) TO INCOME
Depreciation and amortization
993
943
Deferred income taxes
104
241
Rate case amortization and accruals
104
35
Other non-cash items, net
6
(
85
)
CHANGES IN ASSETS AND LIABILITIES
Accounts receivable – customers
(
59
)
538
Allowance for uncollectible accounts – customers
66
(
48
)
Materials and supplies, including fuel oil and gas in storage
20
49
Revenue decoupling mechanism receivable
(
58
)
(
102
)
Other receivables and other current assets
107
(
191
)
Unbilled revenue and net unbilled revenue deferrals
24
76
Accounts receivable from (to) affiliated companies
59
(
60
)
Prepayments
13
(
56
)
Accounts payable
(
158
)
(
393
)
Accounts payable from affiliated companies
2
7
Pensions and retiree benefits obligations, net
(
131
)
(
89
)
Pensions and retiree benefits contributions
(
9
)
(
9
)
Superfund and environmental remediation costs
(
16
)
(
7
)
Accrued taxes
(
7
)
(
51
)
Accrued taxes to affiliated companies
—
(
89
)
Accrued interest
19
15
Deferred charges, noncurrent assets, leases, net and other regulatory assets
(
214
)
(
341
)
Deferred credits, noncurrent liabilities and other regulatory liabilities
184
(
114
)
Other current liabilities
(
138
)
78
NET CASH FLOWS FROM OPERATING ACTIVITIES
1,791
1,140
INVESTING ACTIVITIES
Utility construction expenditures
(
2,242
)
(
1,969
)
Cost of removal less salvage
(
211
)
(
193
)
NET CASH FLOWS USED IN INVESTING ACTIVITIES
(
2,453
)
(
2,162
)
FINANCING ACTIVITIES
Net issuance (payment) of short-term debt
64
(
354
)
Issuance of long-term debt
1,400
500
Debt issuance costs
(
23
)
(
5
)
Capital contribution by Con Edison
80
1,701
Dividend to Con Edison
(
536
)
(
528
)
NET CASH FLOWS FROM FINANCING ACTIVITIES
985
1,314
CASH AND TEMPORARY CASH INVESTMENTS
NET CHANGE FOR THE PERIOD
323
292
BALANCE AT BEGINNING OF PERIOD
1,138
1,056
BALANCE AT END OF PERIOD
$
1,461
$
1,348
SUPPLEMENTAL DISCLOSURE OF CASH INFORMATION
Cash paid during the period for:
Interest, net of capitalized interest
$
484
$
423
Income taxes
$
28
$
86
SUPPLEMENTAL DISCLOSURE OF NON-CASH INFORMATION
Construction expenditures in accounts payable
$
459
$
406
Equipment acquired but unpaid as of end of period
$
11
$
17
The accompanying notes are an integral part of these financial statements.
16
Consolidated Edison Company of New York, Inc.
CONSOLIDATED BALANCE SHEET (UNAUDITED)
(Millions of Dollars)
June 30,
2024
December 31,
2023
ASSETS
CURRENT ASSETS
Cash and temporary cash investments
$
1,461
$
1,138
Accounts receivable – customers, net allowance for uncollectible accounts of $
419
and $
353
in 2024 and 2023, respectively
2,323
2,330
Other receivables, net allowance for uncollectible accounts of $
21
and $
9
in 2024 and 2023, respectively
218
332
Accrued unbilled revenue
617
678
Accounts receivable from affiliated companies
87
146
Fuel oil, gas in storage, materials and supplies, at average cost
402
422
Prepayments
316
329
Regulatory assets
145
254
Revenue decoupling mechanism receivable
248
190
Fair value of derivative assets
33
49
Other current assets
124
113
TOTAL CURRENT ASSETS
5,974
5,981
INVESTMENTS
653
608
UTILITY PLANT, AT ORIGINAL COST
Electric
38,043
36,808
Gas
13,598
13,226
Steam
3,146
3,085
General
4,366
4,530
TOTAL
59,153
57,649
Less: Accumulated depreciation
13,993
13,171
Net
45,160
44,478
Construction work in progress
2,410
2,168
NET UTILITY PLANT
47,570
46,646
NON-UTILITY PROPERTY
Non-utility property, net accumulated depreciation of $
25
in 2024 and 2023
2
2
NET PLANT
47,572
46,648
OTHER NONCURRENT ASSETS
Regulatory assets
4,777
4,314
Operating lease right-of-use asset
509
532
Pension and retiree benefits
3,285
3,184
Fair value of derivative assets
19
49
Other deferred charges and noncurrent assets
286
284
TOTAL OTHER NONCURRENT ASSETS
8,876
8,363
TOTAL ASSETS
$
63,075
$
61,600
The accompanying notes are an integral part of these financial statements.
17
Consolidated Edison Company of New York, Inc.
CONSOLIDATED BALANCE SHEET (UNAUDITED)
(Millions of Dollars)
June 30,
2024
December 31,
2023
LIABILITIES AND SHAREHOLDER’S EQUITY
CURRENT LIABILITIES
Long-term debt due within one year
$
250
$
250
Notes payable
1,967
1,903
Accounts payable
1,371
1,629
Accounts payable to affiliated companies
18
16
Customer deposits
405
378
Accrued taxes
48
55
Accrued taxes to affiliated companies
1
1
Accrued interest
178
159
Accrued wages
116
114
Fair value of derivative liabilities
71
179
Regulatory liabilities
76
107
System benefit charge
409
406
Operating lease liabilities
116
116
Other current liabilities
322
381
TOTAL CURRENT LIABILITIES
5,348
5,694
NONCURRENT LIABILITIES
Provision for injuries and damages
179
185
Pensions and retiree benefits
584
542
Superfund and other environmental costs
1,020
1,026
Asset retirement obligations
530
520
Fair value of derivative liabilities
65
108
Deferred income taxes and unamortized investment tax credits
8,237
7,984
Operating lease liabilities
431
429
Regulatory liabilities
4,591
4,818
Other deferred credits and noncurrent liabilities
326
338
TOTAL NONCURRENT LIABILITIES
15,963
15,950
LONG-TERM DEBT
22,194
20,810
COMMITMENTS AND CONTINGENCIES (Note B and Note G)
SHAREHOLDER’S EQUITY (See Statement of Shareholder’s Equity)
19,570
19,146
TOTAL LIABILITIES AND SHAREHOLDER’S EQUITY
$
63,075
$
61,600
The accompanying notes are an integral part of these financial statements.
18
Consolidated Edison Company of New York, Inc.
CONSOLIDATED STATEMENT OF SHAREHOLDER’S EQUITY (UNAUDITED)
Common Stock
Additional
Paid-In
Capital
Retained
Earnings
Repurchased
Con Edison
Stock
Capital
Stock
Expense
Accumulated
Other
Comprehensive
Income (Loss)
Total
(In Millions)/Except Share Data)
Shares
Amount
BALANCE AS OF DECEMBER 31, 2022
235
$
589
$
7,419
$
9,890
$(
962
)
$(
62
)
$
4
$
16,878
Net income
604
604
Common stock dividend to Con Edison
(
264
)
(
264
)
Capital contribution by Con Edison
1,675
1,675
Other comprehensive loss
(
1
)
(
1
)
BALANCE AS OF MARCH 31, 2023
235
$
589
$
9,094
$
10,230
$(
962
)
$(
62
)
$
3
$
18,892
Net income
189
189
Common stock dividend to Con Edison
(
264
)
(
264
)
Capital contribution by Con Edison
26
26
BALANCE AS OF JUNE 30, 2023
235
$
589
$
9,120
$
10,155
$(
962
)
$(
62
)
$
3
$
18,843
BALANCE AS OF DECEMBER 31, 2023
235
$
589
$
9,139
$
10,440
$(
962
)
$(
62
)
$
2
$
19,146
Net income
694
694
Common stock dividend to Con Edison
(
268
)
(
268
)
Capital contribution by Con Edison
25
25
BALANCE AS OF MARCH 31, 2024
235
$
589
$
9,164
$
10,866
$(
962
)
$(
62
)
$
2
$
19,597
Net income
186
186
Common stock dividend to Con Edison
(
268
)
(
268
)
Capital contribution by Con Edison
55
55
BALANCE AS OF JUNE 30, 2024
235
$
589
$
9,219
$
10,784
$(
962
)
$(
62
)
$
2
$
19,570
The accompanying notes are an integral part of these financial statements.
19
NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)
General
These combined notes accompany and form an integral part of the separate interim consolidated financial statements of each of the
two
separate registrants: Consolidated Edison, Inc. and its subsidiaries (Con Edison) and Consolidated Edison Company of New York, Inc. and its subsidiaries (CECONY). CECONY is a subsidiary of Con Edison and as such its financial condition and results of operations and cash flows, that are presented separately in the CECONY consolidated financial statements, are also consolidated, along with those of Orange and Rockland Utilities, Inc. (O&R), Con Edison Transmission, Inc. (together with its subsidiaries, Con Edison Transmission) and its former subsidiary, Con Edison Clean Energy Businesses, Inc. (together with its subsidiaries, the Clean Energy Businesses), in Con Edison’s consolidated financial statements. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note Q and Note R. The term “Utilities” is used in these notes to refer to CECONY and O&R.
As used in these notes, the term “Companies” refers to Con Edison and CECONY and, except as otherwise noted, the information in these combined notes relates to each of the Companies. However, CECONY makes no representation as to information contained in these combined notes relating to Con Edison or the subsidiaries of Con Edison other than itself.
The separate interim consolidated financial statements of each of the Companies are unaudited but, in the opinion of their respective managements, reflect all adjustments (which include only normally recurring adjustments) necessary for a fair statement of the results for the interim periods presented. The Companies’ separate interim consolidated financial statements should be read together with their separate audited financial statements (including the combined notes thereto) included in Item 8 of their combined Annual Report on Form 10-K for the year ended December 31, 2023, and their separate unaudited financial statements (including the combined notes thereto) included in Part 1, Item 1 of their combined Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2024.
Con Edison has
two
regulated utility subsidiaries: CECONY and O&R. CECONY provides electric service and gas service in New York City and Westchester County. The company also provides steam service in parts of Manhattan. O&R, along with its regulated utility subsidiary, provides electric service in southeastern New York and northern New Jersey, and gas service in southeastern New York. Con Edison Transmission invests in and seeks to develop electric transmission projects through its subsidiary, Consolidated Edison Transmission, LLC, and manages, through joint ventures, investments in gas pipeline and storage facilities through its subsidiary, Con Edison Gas Pipeline and Storage, LLC. See “Investments” in Note A.
Note A –
Summary of Significant Accounting Policies and Other Matters
Accounting Policies
The accounting policies of Con Edison and its subsidiaries conform to generally accepted accounting principles in the United States of America (GAAP). For the Utilities, these accounting principles include the accounting rules for regulated operations and the accounting requirements of the Federal Energy Regulatory Commission (FERC) and the state regulators having jurisdiction.
Investments
Con Edison's investments consist primarily of the investments of Con Edison Transmission that are accounted for under the equity method and the fair value of the Utilities' supplemental retirement income plan and deferred income plan assets.
Investment in Mountain Valley Pipeline, LLC (MVP)
In June 2024, the Mountain Valley Pipeline, a
303
-mile gas transmission pipeline in West Virginia and Virginia, entered service. The project operator is continuing restoration of the right of way and estimates a total project cost of approximately $
7,900
million (excluding allowance for funds used during construction (AFUDC)). Con Edison Transmission's interest in MVP, the company that developed the project, is expected to be approximately
6.7
percent. At June 30, 2024, the carrying value of Con Edison Transmission's investment in MVP was $
156
million. and its cash contributions to the joint venture amounted to $
530
million. Con Edison records its pro rata share of earnings from its equity investment in MVP, adjusted for accretion of basis difference and income taxes, on its consolidated income statement.
Reclassification
Certain prior period amounts have been reclassified to conform with the current period presentation.
20
Earnings Per Share
Con Edison presents basic and diluted earnings per share (EPS) on the face of its consolidated income statement. Basic EPS is calculated by dividing earnings available to common shareholders (“Net income for common stock” on Con Edison’s consolidated income statement) by the weighted average number of Con Edison common shares outstanding during the period. In the calculation of diluted EPS, weighted average shares outstanding are increased for additional shares that would be outstanding if potentially dilutive securities were converted to common stock.
Potentially dilutive securities for Con Edison consist of restricted stock units and deferred stock units for which the average market price of the common shares for the period was greater than the estimated vesting price.
For the three and six months ended June 30, 2024 and 2023, basic and diluted EPS for Con Edison are calculated as follows:
For the Three Months Ended June 30,
For the Six Months Ended June 30,
(Millions of Dollars, except per share amounts/Shares in Millions)
2024
2023
2024
2023
Net income for common stock
$
202
$
226
$
922
$
1,658
Weighted average common shares outstanding – basic
345.9
345.9
345.7
349.8
Add: Incremental shares attributable to effect of potentially dilutive securities
1.2
1.5
1.2
1.5
Adjusted weighted average common shares outstanding – diluted
347.1
347.4
346.9
351.3
Net Income per common share – basic
$
0.58
$
0.65
$
2.67
$
4.74
Net Income per common share – diluted
$
0.58
$
0.65
$
2.66
$
4.72
The computation of diluted EPS for the three and six months ended June 30, 2024 excluded an
immaterial
amount of performance share awards because of their anti-dilutive effect.
Reconciliation of Cash, Temporary Cash Investments and Restricted Cash
Cash, temporary cash investments and restricted cash are presented on a combined basis in the Companies’ consolidated statements of cash flows.
At June 30, 2024 and 2023, cash, temporary cash investments and restricted cash for Con Edison were as follows; CECONY did not have material restricted cash balances as of June 30, 2024 and 2023:
At June 30,
Con Edison
(Millions of Dollars)
2024
2023
Cash and temporary cash investments
$
1,500
$
1,955
Restricted cash (a)
7
1
Total cash, temporary cash investments and restricted cash
$
1,507
$
1,956
(a)
On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note Q. Con Edison retained one deferred project, Broken Bow II, a
75
MW nameplate capacity wind power project located in Nebraska. Con Edison's restricted cash for the 2023 and 2024 periods primarily include restricted cash of Broken Bow II that continued to be classified as held for sale as of June 30, 2024. See Note R.
Variable Interest Entities
The accounting rules for consolidation address the consolidation of a variable interest entity (VIE) by a business enterprise that is the primary beneficiary. A VIE is an entity that does not have a sufficient equity investment at risk to permit it to finance its activities without additional subordinated financial support, or whose equity investors lack the characteristics of a controlling financial interest. The primary beneficiary is the business enterprise that has the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and either absorbs a significant amount of the VIE’s losses or has the right to receive benefits that could be significant to the VIE.
The Companies enter into arrangements including leases, partnerships and electricity purchase agreements, with various entities. As a result of these arrangements, the Companies retain or may retain a variable interest in these entities.
21
CECONY has an ongoing long-term electricity purchase agreement with Brooklyn Navy Yard Cogeneration Partners, LP, a potential VIE. In 2023, a request was made of this counterparty for information necessary to determine whether the entity was a VIE and whether CECONY is the primary beneficiary; however, the information was not made available. The payments for this contract constitute CECONY’s maximum exposure to loss with respect to the potential VIE.
Assets Held for Sale
Generally, a long-lived asset or business to be sold is classified as held for sale in the period in which management, with approval from the Board of Directors, commits to a plan to sell, and a sale is expected to be completed within one year. During the first nine months of 2022, Con Edison considered strategic alternatives with respect to the Clean Energy Businesses.
As described further in Note R, on October 1, 2022, Con Edison's management received authority to commit to a plan to sell the Clean Energy Businesses and entered into a purchase and sale agreement. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses with the exception of
two
tax equity interests in
three
projects and
one
deferred project, Broken Bow II. Broken Bow II continued to be classified as held for sale as of June 30, 2024. See Note R.
Note B –
Regulatory Matters
Rate Plans
O&R New York – Electric
In April 2024, O&R filed an update to its January 2024 request to the NYSPSC for an electric rate increase effective January 1, 2025. The company decreased its requested January 2024 rate increase by $
7.5
million to $
10.7
million.
For purposes of illustration, the filing calculated rate increases of $
34.8
million and $
55
million effective January 2026 and 2027, respectively, based upon the proposed return on common equity of
10.25
percent and a common equity ratio of
50
percent. In May 2024, the New York State Department of Public Service (NYSDPS) submitted testimony in the NYSPSC proceeding in which O&R requested an electric rate increase, effective January 1, 2025. The NYSDPS testimony supports an electric rate decrease of $
27.6
million, reflecting, among other things, a
9.50
percent return on common equity and a common equity ratio of
48
percent.
O&R New York –Gas
In April 2024, O&R filed an update to its January 2024 request to the NYSPSC for a gas rate increase effective January 1, 2025.
The company increased its requested January 2024 rate increase by $
3.1
million to $
17.5
million.
For purposes of illustration, the filing calculated rate increases of $
22.8
million and $
19.2
million effective January 2026 and 2027, respectively, based upon the proposed return on common equity of
10.25
percent and a common equity ratio of
50
percent. In May 2024, the NYSDPS submitted testimony in the NYSPSC proceeding in which O&R requested a gas rate increase, effective January 1, 2025. The NYSDPS testimony supports a gas rate decrease of $
2.9
million, reflecting, among other things, a
9.50
percent return on common equity and a common equity ratio of
48
percent.
Bill Relief Program
In March 2024, CECONY and O&R received $
91
million and $
9
million, respectively, pursuant to a New York State bill relief program funded by the state that provided a one-time bill credit for electric and gas customers. The program was established to partially offset the costs all customers pay to fund utility energy affordability programs.
Other Regulatory Matters
In January 2023, CECONY initiated a review of welds on certain gas and steam mains following the company’s discovery of a leak from a gas main weld in Queens, New York. During the course of its review thus far, CECONY discovered a limited number of other non-conforming gas and steam main welds. New York regulations require utilities to perform and record weld films for certain gas and steam main welds. Upon reviewing these films, CECONY determined that in some instances third-party contractors engaged in misconduct by substituting duplicate weld films for different welds, while another third-party contractor had created poor quality weld films. CECONY voluntarily disclosed its initial review and findings to the NYSDPS which, in turn, initiated its own investigation. CECONY also reported the contractors’ misconduct to law enforcement. Given the nature of the non-conforming welds identified, CECONY does not anticipate significant impact to the operation of its gas and steam mains. CECONY continues to investigate this matter, is remediating and monitoring the known non-conforming welds and is cooperating with the NYSDPS on its investigation of this matter. CECONY is unable to estimate the amount or range of its possible loss, if any, related to this matter. At June 30, 2024, CECONY had not accrued a liability related to this matter.
22
In May 2024, the NYSPSC issued an order denying an April 2023 petition by CECONY that requested permission to capitalize costs to implement its new customer billing and information system to the extent those costs exceeded the $
421
million cap established in CECONY’s 2020 – 2022 electric and gas rate plans. CECONY’s final costs for the new system were $
510
million ($
89
million above the $
421
million cap in the rate plans). CECONY believes that the incremental costs were both prudent and necessary for the successful deployment of the system for the benefit of its customers. In May 2024, CECONY expensed incremental costs of $
51
million for the new system that were previously capitalized, in addition to a $
38
million reserve established at December 31, 2023. In June 2024, CECONY filed a petition for rehearing with the NYSPSC. CECONY is unable to predict the NYSPSC's response to its rehearing petition.
In January 2018, the NYSPSC issued an order initiating a focused operations audit of the Utilities’ financial accounting for income taxes. The audit is investigating the Utilities’ inadvertent understatement of a portion, the amount of which may be material, of their calculation of total federal income tax expense for ratemaking purposes related to the calculation of plant retirement-related cost of removal. As a result of such understatement, the Utilities accumulated significant income tax regulatory assets ($
1,082
million and $
16
million for CECONY and O&R, respectively, as of June 30, 2024 and $
1,113
million and $
18
million for CECONY and O&R, respectively, as of December 31, 2023, which are not earning a return. While the Utilities have properly calculated and paid their federal income taxes and there is no uncertain tax position related to this matter, this understatement of historical income tax expense materially reduced the amount of revenue collected from the Utilities' customers in the past relative to what it should have been. The Utilities’ rate plans have reflected the correct amount of federal income taxes recoverable from customers, including a proportionate recovery of the regulatory asset, beginning with O&R’s rate plans effective November 2015, CECONY’s electric and gas rate plans effective January 2017, and CECONY’s steam plan effective November 2023. As part of the audit, the Utilities plan to pursue a private letter ruling from the Internal Revenue Service (IRS) confirming that the Utilities’ inadvertent understatement of prior years’ income tax expense constitutes a normalization violation that can be cured through an increase in future years’ revenue requirements until such time as the regulatory asset is fully recovered in rates, and not through a write-down of all or a portion of the Utilities’ regulatory asset. Under Accounting Standards Codification Topic (ASC) 740, the Utilities recorded an unfunded deferred federal income tax liability (with a gross-up amount) and a corresponding regulatory asset. The income tax regulatory assets are netted against the related regulatory liability for future income tax and are shown in the line “Future income tax” in the following table of Regulatory Assets and Liabilities and on the Companies’ consolidated balance sheets in the line “Regulatory liabilities.” Management’s assessment is that the income tax regulatory assets as of June 30, 2024 are probable of collection through future rates. The IRS provides safe harbor relief for inadvertent normalization violations through the jurisdictional rate setting process of including in rates adequate revenue to fully recover the deferred tax balance. However, the Utilities would record a liability or impair a portion of the regulatory assets associated with this understatement if the NYSPSC were to issue an order that required the Utilities to write off all or a portion of their existing regulatory asset. The Utilities are unable to estimate the amount or range of their possible loss, if any, related to this matter. At June 30, 2024, the Utilities had not accrued a liability related to this matter.
23
Regulatory Assets and Liabilities
Regulatory assets and liabilities at June 30, 2024 and December 31, 2023 were comprised of the following items:
Con Edison
CECONY
(Millions of Dollars)
2024
2023
2024
2023
Regulatory assets
System peak reduction and energy efficiency programs
$
1,129
$
1,095
$
1,102
$
1,075
Environmental remediation costs
1,100
1,105
1,017
1,022
COVID - 19 pandemic deferrals
853
789
839
782
Revenue taxes
505
476
484
455
Legacy meters (a)
428
17
413
—
Deferred storm costs
175
206
82
115
Property tax reconciliation
126
169
126
169
Deferred derivative losses - long term
115
163
104
148
Electric vehicle make ready
100
73
91
68
MTA power reliability deferral
46
61
46
61
Gas service line deferred costs
29
43
29
43
Pension and other postretirement benefits deferrals
9
48
8
39
Unrecognized pension and other postretirement costs (b)
7
—
7
—
Other
474
362
429
337
Regulatory assets – noncurrent
5,096
4,607
4,777
4,314
Deferred derivative losses - short term
147
269
137
253
Recoverable energy costs
20
12
8
1
Regulatory assets – current
167
281
145
254
Total Regulatory Assets
$
5,263
$
4,888
$
4,922
$
4,568
Regulatory liabilities
Allowance for cost of removal less salvage
$
1,468
$
1,456
$
1,271
$
1,266
Future income tax*
1,397
1,535
1,279
1,404
Unrecognized pension and other postretirement costs (b)
793
943
746
867
Pension and other postretirement benefit deferrals
324
284
270
233
Net unbilled revenue deferrals
268
278
268
278
Late payment charge deferral
208
167
202
161
System benefit charge carrying charge
103
92
99
88
Net proceeds from sale of property
36
48
35
47
Deferred derivative gains - long term
26
49
24
49
Settlement of prudence proceeding
11
11
11
11
Other
433
465
386
414
Regulatory liabilities – noncurrent
5,067
5,328
4,591
4,818
Deferred derivative gains - short term
60
74
55
71
Refundable energy costs
52
71
21
36
Revenue decoupling mechanism
13
—
—
—
Regulatory liabilities – current
125
145
76
107
Total Regulatory Liabilities
$
5,192
$
5,473
$
4,667
$
4,925
* See "Other Regulatory Matters," above.
(a) Pursuant to their rate plans, CECONY and O&R are recovering the costs of legacy meters over a
15-year
period beginning January 1, 2024 and a
12-year
period beginning January 1, 2022, respectively.
(b) Unrecognized pension and other postretirement costs represent the deferrals associated with the accounting rules for retirement benefits.
In general, the Utilities receive or are being credited with a return at the Other Customer-Provided Capital rate for regulatory assets that have not been included in rate base, and receive or are being credited with a return at the pre-tax weighted average cost of capital once the asset is included in rate base. Similarly, the Utilities pay to or credit customers with a return at the Other Customer-Provided Capital rate for regulatory liabilities that have not been included in rate base, and pay to or credit customers with a return at the pre-tax weighted average cost of capital once the liability is included in rate base. The Other Customer-Provided Capital rate for the six months ended June 30, 2024 and December 31, 2023 was
5.95
percent and
5.20
percent, respectively.
24
In general, the Utilities are receiving or being credited with a return on their regulatory assets for which a cash outflow has been made ($
2,950
million and $
2,541
million for Con Edison, and $
2,758
million and $
2,359
million for CECONY at June 30, 2024 and December 31, 2023, respectively). Regulatory assets of RECO for which a cash outflow has been made ($
24
million and $
24
million at June 30, 2024 and December 31, 2023, respectively) are not receiving or being credited with a return. RECO recovers regulatory assets over a period of up to
four years
or until they are addressed in its next base rate case in accordance with the rate provisions approved by the NJBPU. Regulatory liabilities are treated in a consistent manner.
Regulatory assets that represent future financial obligations and were deferred in accordance with the Utilities’ rate plans or orders issued by state regulators do not earn a return until such time as a cash outlay has been made. Regulatory liabilities are treated in a consistent manner.
At June 30, 2024 and
December 31, 2023, regulatory assets for Con Edison and CECONY that did not earn a return consisted of the following items:
Regulatory Assets Not Earning a Return*
Con Edison
CECONY
(Millions of Dollars)
2024
2023
2024
2023
Environmental remediation costs
$
1,100
$
1,105
$
1,017
$
1,022
Revenue taxes
514
490
493
470
COVID-19 deferral for uncollectible accounts receivable
365
291
354
288
Deferred derivative losses - current
147
269
136
253
Deferred derivative losses - long term
115
163
104
148
Unrecognized pension and other postretirement costs
7
—
7
—
Other
65
29
53
28
Total
$
2,313
$
2,347
$
2,164
$
2,209
*This table presents regulatory assets not earning a return for which no cash outlay has been made.
The recovery periods for regulatory assets for which a cash outflow has not been made and that do not earn a return have not yet been determined, except as noted below, and are expected to be determined pursuant to the Utilities’ future rate plans to be filed or orders issued by the state regulators in connection therewith.
The Utilities recover unrecognized pension and other postretirement costs over 10 years, and the portion of investment gains or losses recognized in expense over 15 years, pursuant to NYSPSC policy.
The deferral for revenue taxes represents the New York State metropolitan transportation business tax surcharge on the cumulative temporary differences between the book and tax basis of assets and liabilities of the Utilities, as well as the difference between taxes collected and paid by the Utilities to fund mass transportation. The Utilities recover the majority of the revenue taxes over the remaining book lives of the electric and gas plant assets, as well as the steam plant assets for CECONY.
The Utilities recover deferred derivative losses – current within
one year
, and noncurrent generally within
three years
.
Note C –
Capitalization
In May 2024, CECONY issued $
400
million aggregate principal amount of
5.375
percent debentures, due 2034 and $
1,000
million aggregate principal amount of
5.7
percent debentures, due 2054.
The carrying amounts and fair values of long-term debt at June 30, 2024 and December 31, 2023 were:
25
(Millions of Dollars)
2024
2023
Long-Term Debt (including current portion) (a)
Carrying
Amount
Fair
Value
Carrying
Amount
Fair
Value
Con Edison (b)
$
23,561
$
20,951
$
22,177
$
20,525
CECONY
$
22,444
$
19,985
$
21,060
$
19,517
(a)
Amounts shown are net of unamortized debt expense and unamortized debt discount of $
239
million and $
231
million for Con Edison and CECONY, respectively, as of June 30, 2024 and $
222
million and $
215
million for Con Edison and CECONY, respectively, as of December 31, 2023.
(b)
Amounts shown exclude the debt of Broken Bow II, a deferred project that was classified as held for sale as of December 31, 2023. The carrying value and fair value of Broken Bow II's long-term debt, including the current portion, as of June 30, 2024 was $
61
million and $
55
million, respectively. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note Q and Note R.
The fair values of the Companies' long-term debt have been estimated primarily using available market information and at June 30, 2024 are classified as Level 2 liabilities. See Note O.
Note D –
Short-Term Borrowing
In March 2024, CECONY entered into a
364-Day
Revolving Credit Agreement (the CECONY Credit Agreement) that replaced a March 2023 CECONY
364-Day
Credit Agreement under which banks are committed to provide loans up to $
500
million on a revolving credit basis. The CECONY Credit Agreement expires in March 2025 and supports CECONY’s commercial paper program. Loans issued under the CECONY Credit Agreement may also be used for other general corporate purposes. Any borrowings under the CECONY Credit Agreement would generally be at variable interest rates.
The banks’ commitments under the CECONY Credit Agreement are subject to certain conditions, including that there be no event of default under the CECONY Credit Agreement. The commitments are not subject to maintenance of credit rating levels or the absence of a material adverse change. Upon a change of control of, or upon an event of default by CECONY under the CECONY Credit Agreement, the banks may terminate their commitments, declare any amounts owed by CECONY immediately due and payable. Events of default include, among others, CECONY exceeding at any time of a ratio of consolidated debt to consolidated total capital of 0.
65
to 1; CECONY having liens on its assets in an aggregate amount exceeding
10
percent of its consolidated net tangible assets, subject to certain exceptions; CECONY or any of its material subsidiaries failing to make one or more payments in respect of material financial obligations (in excess of an aggregate $
150
million of debt or derivative obligations other than non-recourse debt); the
occurrence of an event or condition which results in the acceleration of the maturity of any material debt (in excess of an aggregate $
150
million of debt other than non-recourse debt) or enables the holders of such debt to accelerate the maturity thereof; and other customary events of default. Interest and fees charged reflect CECONY's credit rating.
At June 30, 2024, Con Edison had $
2,452
million of commercial paper outstanding of which $
1,967
million was outstanding under CECONY’s program. The weighted average interest rate at June 30, 2024 was
5.5
percent for both Con Edison and CECONY. At December 31, 2023, Con Edison had $
2,288
million of commercial paper outstanding of which $
1,903
million was outstanding under CECONY’s program. The weighted average interest rate at December 31, 2023 was
5.6
percent for both Con Edison and CECONY.
At June 30, 2024 and December 31, 2023,
no
loans or letters of credit were outstanding under the Companies’ $
2,500
million 2023 Credit Agreement (Credit Agreement) and
no
loans were outstanding under the CECONY Credit Agreement. The Companies were in compliance with their significant debt covenants at June 30, 2024. In March 2024, the termination date of the Credit Agreement was extended from March 2028 to March 2029. In March 2024, the Companies also entered into a First Amendment to the Credit Agreement that, among other things, amended the mechanics relating to determining the interest rate to be paid with respect to a “term SOFR loan.”
26
Note E –
Pension Benefits
Total Periodic Benefit Credit
The components of the Companies’ total periodic benefit credit for the three and six months ended June 30, 2024 and 2023 were as follows:
For the Three Months Ended June 30,
Con Edison
CECONY
(Millions of Dollars)
2024
2023
2024
2023
Service cost – including administrative expenses
$
46
$
41
$
43
$
38
Interest cost on projected benefit obligation
162
162
152
153
Expected return on plan assets
(
282
)
(
279
)
(
268
)
(
265
)
Recognition of net actuarial loss (gain)
1
(
58
)
1
(
55
)
Recognition of prior service credit
(
4
)
(
4
)
(
5
)
(
5
)
TOTAL PERIODIC BENEFIT CREDIT
$(
77
)
$(
138
)
$(
77
)
$(
134
)
Cost capitalized
(
23
)
(
21
)
(
22
)
(
20
)
Reconciliation to rate level
8
74
5
68
Total credit recognized
$(
92
)
$(
85
)
$(
94
)
$(
86
)
For the Six Months Ended June 30,
Con Edison
CECONY
(Millions of Dollars)
2024
2023
2024
2023
Service cost – including administrative expenses
$
89
$
80
$
84
$
75
Interest cost on projected benefit obligation
321
324
302
305
Expected return on plan assets
(
564
)
(
557
)
(
538
)
(
530
)
Recognition of net actuarial gain
(
3
)
(
115
)
(
4
)
(
109
)
Recognition of prior service credit
(
9
)
(
9
)
(
10
)
(
10
)
TOTAL PERIODIC BENEFIT CREDIT
$(
166
)
$(
277
)
$(
166
)
$(
269
)
Cost capitalized
(
46
)
(
42
)
(
43
)
(
39
)
Reconciliation to rate level
27
147
21
135
Total credit recognized
$(
185
)
$(
172
)
$(
188
)
$(
173
)
Components of net periodic benefit credit other than service cost are presented outside of operating income on the Companies' consolidated income statements, and only the service cost component is eligible for capitalization. Accordingly, the service cost component is included in the line "Other operations and maintenance" and the non-service cost components are included in the lines "Other income" and "Other deductions" in the Companies' consolidated income statements.
Expected Contributions
Based on estimates as of June 30, 2024, the Companies expect to make contributions to the pension plans during 2024 of $
25
million (of which $
22
million is to be made by CECONY). The Companies’ policy is to fund the total periodic benefit cost of the qualified plan to the extent tax deductible and to also contribute to the non-qualified supplemental pension plans. No funding is anticipated for the qualified plan during 2024, and during the first six months of 2024, the Companies contributed $
10
million to the non-qualified supplemental pension plans, $
9
million of which was contributed by CECONY. CECONY also contributed $
12
million to the external trust for its non-qualified supplemental pension plan.
27
Note F –
Other Postretirement Benefits
Total Periodic Benefit Credit
The components of the Companies’ total periodic postretirement benefit credit for the three and six months ended June 30, 2024 and 2023 were as follows:
For the Three Months Ended June 30,
Con Edison
CECONY
(Millions of Dollars)
2024
2023
2024
2023
Service cost - including administrative expenses
$
3
$
4
$
3
$
3
Interest cost on projected other postretirement benefit obligation
12
14
10
12
Expected return on plan assets
(
17
)
(
18
)
(
14
)
(
14
)
Recognition of net actuarial gain
(
5
)
(
4
)
(
4
)
(
2
)
TOTAL PERIODIC OTHER POSTRETIREMENT CREDIT
$(
7
)
$(
4
)
$(
5
)
$(
1
)
Cost capitalized
(
2
)
(
2
)
(
1
)
(
1
)
Reconciliation to rate level
4
1
3
—
Total credit recognized
$(
5
)
$(
5
)
$(
3
)
$(
2
)
For the Six Months Ended June 30,
Con Edison
CECONY
(Millions of Dollars)
2024
2023
2024
2023
Service cost - including administrative expenses
$
6
$
7
$
5
$
6
Interest cost on projected other postretirement benefit obligation
24
28
20
25
Expected return on plan assets
(
34
)
(
35
)
(
27
)
(
28
)
Recognition of net actuarial gain
(
10
)
(
8
)
(
7
)
(
4
)
Recognition of prior service credit
(
1
)
(
1
)
—
—
TOTAL PERIODIC OTHER POSTRETIREMENT CREDIT
$(
15
)
$(
9
)
$(
9
)
$(
1
)
Cost capitalized
(
3
)
(
3
)
(
2
)
(
2
)
Reconciliation to rate level
8
2
6
(
2
)
Total credit recognized
$(
10
)
$(
10
)
$(
5
)
$(
5
)
For information about the presentation of the components of other postretirement benefit credit, see Note E.
Expected Contributions
Based on estimates as of June 30, 2024, the Companies expect to make a contribution
of $
7
million
(all of which is expected to be made by CECONY) to the other postretirement benefit plans in 2024. The Companies’ policy is to fund the total periodic benefit cost of the plans to the extent tax deductible.
Note G –
Environmental Matters
Superfund Sites
Hazardous substances, such as asbestos, polychlorinated biphenyls (PCBs) and coal tar, have been used or generated in the course of operations of the Utilities and their predecessors and are present at sites and in facilities and equipment they currently or previously owned, including sites at which gas was manufactured or stored.
The Federal Comprehensive Environmental Response, Compensation and Liability Act of 1980 and similar state statutes (Superfund) impose joint and several liability, regardless of fault, upon generators of hazardous substances for investigation and remediation costs (which include costs of demolition, removal, disposal, storage, replacement, containment and monitoring) and natural resource damages. Liability under these laws can be material and may be imposed for contamination from past acts, even though such past acts may have been lawful at the time they occurred. The sites at which the Utilities have been asserted to have liability under these laws, including their manufactured gas plant sites and any neighboring areas to which contamination may have migrated, are referred to herein as “Superfund Sites.”
For Superfund Sites where there are other potentially responsible parties and the Utilities are not managing the site investigation and remediation, the accrued liability represents an estimate of the amount the Utilities will need to pay
28
to investigate and, where determinable, discharge their related obligations. For Superfund Sites (including the manufactured gas plant sites) for which one of the Utilities is managing the investigation and remediation, the accrued liability represents an estimate of the company's share of the undiscounted cost to investigate the sites and, for sites that have been investigated in whole or in part, the cost to remediate the sites, if remediation is necessary and if a reasonable estimate of such cost can be made. Remediation costs are estimated in light of the information available, applicable remediation standards and experience with similar sites.
The accrued liabilities and regulatory assets related to Superfund Sites at June 30, 2024 and December 31, 2023 were as follows:
Con Edison
CECONY
(Millions of Dollars)
2024
2023
2024
2023
Accrued Liabilities:
Manufactured gas plant sites
$
1,005
$
1,016
$
913
$
924
Other Superfund Sites
108
102
107
102
Total
$
1,113
$
1,118
$
1,020
$
1,026
Regulatory assets
$
1,100
$
1,105
$
1,017
$
1,022
Most of the accrued Superfund Site liability relates to sites that have been investigated, in whole or in part. However, for some of the sites, the extent and associated cost of the required remediation has not yet been determined. As investigations progress and information pertaining to the required remediation becomes available, the Utilities expect that additional liability may be accrued, the amount of which is not presently determinable but may be material. The Utilities defer prudently incurred investigation and remediation costs as regulatory assets (for subsequent recovery through rates).
Environmental investigation and remediation costs incurred related to Superfund Sites for the three and six months ended June 30, 2024 and 2023 were as follows:
For the Three Months Ended June 30,
Con Edison
CECONY
(Millions of Dollars)
2024
2023
2024
2023
Remediation costs incurred
$
9
$
3
$
9
$
3
For the Six Months Ended June 30,
Con Edison
CECONY
(Millions of Dollars)
2024
2023
2024
2023
Remediation costs incurred
$
15
$
7
$
15
$
6
Insurance and other third-party recoveries received by Con Edison or CECONY were immaterial for the three and six months ended June 30, 2024 and 2023.
Con Edison and CECONY estimated that for their manufactured gas plant sites (including CECONY’s Astoria site), the aggregate undiscounted potential liability for the investigation and remediation of coal tar and/or other environmental contaminants could range up to $
3,440
million and $
3,295
million, respectively. These estimates were based on the assumption that there is contamination at all sites, including those that have not yet been fully investigated and additional assumptions about the extent of the contamination and the type and extent of the remediation that may be required. Actual experience may be materially different.
29
Asbestos Proceedings
Suits have been brought in New York State and federal courts against the Utilities and many other defendants, wherein a large number of plaintiffs sought large amounts of compensatory and punitive damages for deaths and injuries allegedly caused by exposure to asbestos at various premises of the Utilities. The suits that have been resolved, that are many, have been resolved without any payment by the Utilities, or for amounts that were not, in the aggregate, material to them. The amounts specified in all the remaining thousands of suits total billions of dollars; however, the Utilities believe that these amounts are greatly exaggerated, based on the disposition of previous claims. At June 30, 2024, Con Edison and CECONY have accrued their estimated aggregate undiscounted potential liabilities for these suits and additional suits that may be brought through 2035 as shown in the following table. These estimates were based upon a combination of modeling, historical data analysis and risk factor assessment. Courts have applied, and may continue to apply, different standards for determining liability in asbestos suits than the standard that applied historically. As a result, the Companies currently believe that there is a reasonable possibility of an exposure to loss in excess of the liability accrued for the suits. The Companies are unable to estimate the amount or range of such loss. In addition, certain current and former employees have claimed or are claiming workers’ compensation benefits based on alleged disability from exposure to asbestos. CECONY is permitted to defer as regulatory assets (for subsequent recovery through rates) costs incurred for its asbestos lawsuits and workers’ compensation claims.
The accrued liability for asbestos suits and workers’ compensation proceedings (including those related to asbestos exposure) and the amounts deferred as regulatory assets or liabilities for the Companies at June 30, 2024 and December 31, 2023 were as follows:
Con Edison
CECONY
(Millions of Dollars)
2024
2023
2024
2023
Accrued liability – asbestos suits
$
8
$
8
$
7
$
7
Regulatory assets – asbestos suits
$
8
$
8
$
7
$
7
Accrued liability – workers’ compensation
$
56
$
56
$
54
$
54
Regulatory liabilities – workers’ compensation
$
17
$
17
$
17
$
17
30
Note H –
Material Contingencies
Manhattan Explosion and Fire
On March 12, 2014,
two
multi-use five-story tall buildings located on Park Avenue between 116
th
and 117
th
Streets in Manhattan were destroyed by an explosion and fire. CECONY had delivered gas to the buildings through service lines from a distribution main located below ground on Park Avenue.
Eight
people died and more than
50
people were injured. Additional buildings were also damaged. The National Transportation Safety Board (NTSB) investigated. The parties to the investigation included CECONY, the City of New York, the Pipeline and Hazardous Materials Safety Administration and the NYSPSC. In June 2015, the NTSB issued a final report concerning the incident, its probable cause and safety recommendations. The NTSB determined that the probable cause of the incident was (1) the failure of a defective fusion joint at a service tee (which joined a plastic service line to a plastic distribution main) installed by CECONY that allowed gas to leak from the distribution main and migrate into a building where it ignited and (2) a breach in a city sewer line that allowed groundwater and soil to flow into the sewer, resulting in a loss of support for the distribution main, that caused it to sag and overstressed the defective fusion joint. The NTSB also made safety recommendations, including recommendations to CECONY that addressed its procedures for the preparation and examination of plastic fusions, training of its staff on conditions for notifications to the city’s Fire Department and extension of its gas main isolation valve installation program. In February 2017, the NYSPSC approved a settlement agreement with CECONY related to the NYSPSC's investigations of the incident and the practices of qualifying persons to perform plastic fusions. Pursuant to the agreement, CECONY provided $
27
million of future benefits to customers (for which it accrued a regulatory liability) and did not recover from customers $
126
million of costs for gas emergency response activities that it had previously incurred and expensed. Lawsuits are pending against CECONY seeking generally unspecified damages and, in some cases, punitive damages, for wrongful death, personal injury, property damage and business interruption. CECONY notified its insurers of the incident and believes that the policies in force at the time of the incident will cover CECONY’s costs, in excess of a required retention (the amount of which is not material), to satisfy any liability it may have for damages in connection with the incident. During 2020, CECONY accrued its estimated liability for the suits of $
40
million and an insurance receivable in the same amount, and such estimated liability and receivable did not change as of June 30, 2024.
Other Contingencies
For additional contingencies, see "Other Regulatory Matters" in Note B, Note G and “Uncertain Tax Positions” in Note J.
Guarantees
Con Edison and its subsidiaries have entered into various agreements providing financial or performance assurance primarily to third parties on behalf of their subsidiaries. In addition, Con Edison provided guarantees to third parties on behalf of the Clean Energy Businesses, all of which were transferred to the buyer of the Clean Energy Businesses, RWE Aktiengesellschaft (RWE). Maximum amounts guaranteed by Con Edison and its subsidiaries under these agreements totaled $
175
million at December 31, 2023, and there were
no
guarantees related to the Clean Energy Businesses at June 30, 2024.
31
A summary, by type and term, of Con Edison's total guarantees under these agreements at June 30, 2024 is as follows:
Guarantee Type
0 – 3 years
> 10 years
Total
(Millions of Dollars)
Con Edison Transmission
$
63
$
—
$
63
Broken Bow II
—
9
9
Total
$
63
$
9
$
72
Con Edison Transmission —
Con Edison has guaranteed payment by Con Edison Transmission of the contributions Con Edison Transmission agreed to make to New York Transco LLC (New York Transco). Con Edison Transmission owns a
45.7
percent interest in New York Transco’s New York Energy Solution project, the majority of which has been completed. Guarantee amount shown includes the maximum possible required amount of Con Edison Transmission's contributions for the remainder of this project as calculated based on the assumptions that the project is completed at
175
percent of its estimated remaining costs and New York Transco does not use any debt financing for the project.
Broken Bow II —
Con Edison has guaranteed obligations on behalf of Broken Bow II associated with its investment in a wind energy facility. Broken Bow II is held for sale as of June 30, 2024. See Note R.
Note I –
Leases
Operating lease cost and cash paid for amounts included in the measurement of lease liabilities for the three and six months ended June 30, 2024 and 2023 were as follows:
For the Three Months Ended June 30,
Con Edison
CECONY
(Millions of Dollars)
2024
2023
2024
2023
Operating lease cost
$
17
$
17
$
16
$
16
Operating lease cash flows
$
4
$
4
$
4
$
4
For the Six Months Ended June 30,
Con Edison
CECONY
(Millions of Dollars)
2024
2023(a)
2024
2023
Operating lease cost
$
34
$
37
$
33
$
33
Operating lease cash flows
$
9
$
11
$
7
$
8
(a) Amounts for Con Edison include amounts for the Clean Energy Businesses through February 2023. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note Q and Note R.
At June 30, 2024, CECONY had
two
operating lease agreements for battery storage facilities that had not yet commenced. One of the leases is expected to commence within
three years
, with a lease term of approximately
15
years and the other lease is expected to commence within
two years
, with a lease term of approximately
15
years. For the three and six months ended June 30, 2024 and 2023, there were no material right-of-use assets obtained in exchange for operating lease obligations for Con Edison and CECONY, nor any material lease terminations.
Note J –
Income Tax
Con Edison’s income tax expense (benefit) was ($
10
million) and $
29
million, respectively, for the three months ended June 30, 2024 and June 30, 2023. The decrease in income tax expense is primarily due to lower income before income tax expense, lower state income taxes from a reduction in the Company’s New York State apportionment factor from its investment in Mountain Valley Pipeline going into service, higher flow-through tax benefits in 2024 for plant-related items, the absence in 2024 of a remeasurement of state deferred income tax assets and liabilities as a result of New York State legislation enacted in 2023 and higher amortization of excess deferred federal income taxes.
CECONY’s income tax expense was $
1
million and $
34
million, respectively, for the three months ended June 30, 2024 and June 30, 2023. The decrease in income tax expense is primarily due to lower income before income tax expense, the absence in 2024 of a remeasurement of state deferred income tax assets and liabilities as a result of
32
New York State legislation enacted in 2023, higher flow-through tax benefits in 2024 for plant-related items and higher amortization of excess deferred federal income taxes.
Reconciliation of the difference between income tax expense and the amount computed by applying the prevailing statutory income tax rate to income before income taxes for the
three
months ended June 30, 2024 and 2023 is as follows:
For the Three Months Ended June 30,
Con Edison
CECONY
(% of Pre-tax income)
2024
2023
2024
2023
STATUTORY TAX RATE
Federal
21
%
21
%
21
%
21
%
Changes in computed taxes resulting from:
State income tax, net of federal income taxes
1
2
4
5
Amortization of excess deferred federal income taxes
(
27
)
(
17
)
(
27
)
(
18
)
Cost of removal
4
4
4
4
Other plant-related items
(
4
)
(
1
)
(
2
)
(
1
)
Renewable energy credits
—
(
1
)
—
—
Injuries and damages reserve
—
1
—
1
Remeasurement of deferred NYS income taxes, net of federal income taxes
—
4
—
4
Research and development credits
—
(
1
)
(
1
)
(
1
)
Other
—
—
1
—
Effective tax rate
(
5
%)
12
%
—
15
%
Con Edison’s income tax expense was $
174
million and $
272
million, respectively, for the six months ended June 30, 2024 and June 30, 2023. The decrease in income tax expense is primarily due to lower income before income tax expense, primarily due to the prior year gain on the sale of all of the stock of the Clean Energy Businesses, the absence in 2024 of a remeasurement of state deferred income tax assets and liabilities as a result of New York State legislation enacted in 2023 and higher amortization of excess deferred federal income taxes, offset in part by the absence of a tax benefit from the recognition of deferred unamortized investment tax credits and lower state taxes due to change in state apportionments, both related to the sale of all of the stock of the Clean Energy Businesses in 2023.
CECONY’s income tax expense was $
182
million and $
189
million, respectively, for the six months ended June 30, 2024 and June 30, 2023. The decrease in income tax expense is primarily due to the absence in 2024 of a remeasurement of state deferred income tax assets and liabilities as a result of New York State legislation enacted in 2023, higher amortization of excess deferred federal income taxes and a decrease in the reserve for injuries and damages, offset in part by higher income before income tax expense and lower flow through tax benefits in 2024 for plant-related items.
Reconciliation of the difference between income tax expense and the amount computed by applying the prevailing statutory income tax rate to income before income taxes for the six months ended June 30, 2024 and 2023 is as follows:
33
For the Six Months Ended June 30,
Con Edison
CECONY
(% of Pre-tax income)
2024
2023
2024
2023
STATUTORY TAX RATE
Federal
21
%
21
%
21
%
21
%
Changes in computed taxes resulting from:
State income tax, net of federal income taxes
5
4
5
5
Cost of removal
—
1
2
2
Other plant-related items
(
1
)
—
(
1
)
(
1
)
Amortization of excess deferred federal income taxes
(
9
)
(
5
)
(
9
)
(
8
)
Remeasurement of deferred NYS income taxes, net of federal income taxes
—
1
—
1
Research and development credits
—
—
(
1
)
(
1
)
Deferred unamortized ITC recognized on sale of subsidiary
—
(
6
)
—
—
Gain on sale of subsidiary
—
(
2
)
—
—
Effective tax rate
16
%
14
%
17
%
19
%
Corporate Alternative Minimum Tax
On August 16, 2022, the Inflation Reduction Act (IRA) was signed into law and implemented a new corporate alternative minimum tax (CAMT) that imposes a 15 percent tax on modified GAAP net income. Pursuant to the IRA, corporations are entitled to a tax credit (minimum tax credit) to the extent the CAMT liability exceeds the regular tax liability. This amount can be carried forward indefinitely and used in future years when regular tax exceeds the CAMT.
Beginning in 2024, based on the existing statue, the Companies are subject to and report the CAMT in their Consolidated Income Statements, Consolidated Statements of Cash Flows and the Consolidated Balance Sheets. The deferred tax asset related to the minimum tax credit carryforward will be realized to the extent the Companies’ consolidated deferred tax liabilities exceed the minimum tax credit carryforward. The Companies’ deferred tax liabilities are expected to exceed the minimum tax credit carryforward for the foreseeable future and thus no valuation allowance is required. The Companies are continuing to assess the impacts of the IRA on their financial statements and will update estimates based on future guidance to be issued by the Department of the Treasury.
Uncertain Tax Positions
At June 30, 2024, the estimated liability for uncertain tax positions for Con Edison was $
12
million ($
8
million for CECONY). For the six months ended June 30, 2024, Con Edison recognized $
1
million ($
1
million for CECONY) of income tax expense related to current year positions. Con Edison reasonably expects to resolve within the next twelve months approximately $
3
million (the entire amount attributable to CECONY) of various federal uncertainties due to the expected completion of ongoing tax examinations, of which the entire amount, if recognized, would reduce their effective tax rate. The total amount of unrecognized tax benefits, if recognized, that would reduce Con Edison’s effective tax rate is $
12
million ($
11
million, net of federal income taxes) with $
8
million attributable to CECONY.
The Companies recognize interest on liabilities for uncertain tax positions in interest expense and would recognize penalties, if any, in operating expenses in the Companies’ consolidated income statements. For the six months ended June 30, 2024 and 2023, the Companies recognized an immaterial amount of interest expense and no penalties for uncertain tax positions in their consolidated income statements. At June 30, 2024 and December 31, 2023, the Companies recognized an immaterial amount of accrued interest on their consolidated balance sheets.
In February 2024, New York State completed its examination of the Companies' New York State income and franchise tax returns for tax years 2015 through 2021 with no changes. The Companies' return for tax year 2022 remains open under the statute of limitations.
Note K –
Revenue Recognition
The following table presents, for the three and six months ended June 30, 2024 and 2023, revenue from contracts with customers as defined in ASC 606, "Revenue from Contracts with Customers," as well as additional revenue from sources other than contracts with customers, disaggregated by major source.
34
For the Three Months Ended June 30, 2024
For the Three Months Ended June 30, 2023
(Millions of Dollars)
Revenues from contracts with customers
Other revenues (a)
Total operating revenues
Revenues from contracts with customers
Other revenues (a)
Total operating revenues
CECONY
Electric
$
2,381
($
11
)
$
2,370
$
1,991
$
153
$
2,144
Gas
587
(
49
)
538
521
10
531
Steam
90
(
2
)
88
65
4
69
Total CECONY
$
3,058
$(
62
)
$
2,996
$
2,577
$
167
$
2,744
O&R
Electric
189
(
9
)
180
$
154
$
5
$
159
Gas
52
(
8
)
44
41
—
41
Total O&R
$
241
$(
17
)
$
224
$
195
$
5
$
200
Con Edison Transmission
1
—
1
1
—
1
Other (b)
—
(
1
)
(
1
)
—
(
1
)
(
1
)
Total Con Edison
$
3,300
$(
80
)
$
3,220
$
2,773
$
171
$
2,944
(a) For the Utilities, this includes primarily revenue or negative revenue adjustments from alternative revenue programs, such as the revenue decoupling mechanisms under their New York
electric and gas rate plans.
(b)
Other includes the parent company, Con Edison's tax equity investments, the deferred project held for sale and consolidation adjustments. See Note R.
For the Six Months Ended June 30, 2024
For the Six Months Ended June 30, 2023
(Millions of Dollars)
Revenues from contracts with customers
Other revenues (a)
Total operating revenues
Revenues from contracts with customers
Other revenues (a)
Total operating revenues
CECONY
Electric
$
4,807
$
5
$
4,812
$
4,254
$
246
$
4,500
Gas
1,812
(
31
)
1,781
1,779
43
1,822
Steam
384
(
10
)
374
368
7
375
Total CECONY
$
7,003
$(
36
)
$
6,967
$
6,401
$
296
$
6,697
O&R
Electric
379
(
9
)
370
332
9
341
Gas
167
(
10
)
157
179
1
180
Total O&R
$
546
$(
19
)
$
527
$
511
$
10
$
521
Clean Energy Businesses (c)
Renewables
—
—
—
68
—
68
Energy services
—
—
—
7
—
7
Develop/Transfer Projects
—
—
—
7
—
7
Other
—
—
—
—
47
47
Total Clean Energy Businesses
$
—
$
—
$
—
$
82
$
47
$
129
Con Edison Transmission
2
—
2
2
—
2
Other (b)
—
(
1
)
(
1
)
—
(
2
)
(
2
)
Total Con Edison
$
7,551
$(
56
)
$
7,495
$
6,996
$
351
$
7,347
(a) For the Utilities, this includes primarily revenue or negative revenue adjustments from alternative revenue programs, such as the revenue decoupling mechanisms under their New York
electric and gas rate plans. For the Clean Energy Businesses, this included revenue from wholesale services. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note Q and Note R.
(b)
Other includes the parent company, Con Edison's tax equity investments, the deferred project held for sale and consolidation adjustments. See Note R.
(c)
On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note Q and Note R.
Use of the Percentage-of-Completion Method
Sales and profits on each percentage-of-completion contract at the Clean Energy Businesses were recorded each month based on the ratio of actual cumulative costs incurred to the total estimated costs at completion of the contract, multiplied by the total estimated contract revenue, less cumulative revenues recognized in prior periods (the ‘‘cost-to-cost’’ method). The impact of revisions of contract estimates, which may have resulted from contract modifications, performance or other reasons, were recognized on a cumulative catch-up basis in the period in which the revisions were mad
e
.
On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note Q.
35
2024
2023
(Millions of Dollars)
Unbilled contract revenue (a)
Unearned revenue (b)
Unbilled contract revenue (a)
Unearned revenue (b)
Beginning balance as of January 1,
$
4
$
—
$
80
$
3
Additions (c)
—
—
2
—
Subtractions (c)
—
—
67
3
(d)
Ending balance as of June 30,
$
4
$
—
$
15
(e)
$
—
(a)
Unbilled contract revenue represents accumulated incurred costs and earned profits on contracts (revenue arrangements), which have been recorded as revenue, but have not yet been billed to customers, and which represent contract assets as defined in Topic 606. Substantially all accrued unbilled contract revenue is expected to be collected within one year. Unbilled contract revenue arises from the cost-to-cost method of revenue recognition. Unbilled contract revenue from fixed-price type contracts is converted to billed receivables when amounts are invoiced to customers according to contractual billing terms, which generally occur when deliveries or other performance milestones are completed.
(b)
Unearned revenue represents a liability for billings to customers in excess of earned revenue, which are contract liabilities as defined in Topic 606.
(c)
Additions for unbilled contract revenue and subtractions for unearned revenue represent additional revenue earned. Additions for unearned revenue and subtractions for unbilled contract revenue represent billings. Activity also includes appropriate balance sheet classification for the period. Of the subtractions in 2023, $
21
million and $
1
million relate to the sale of all of the stock of the Clean Energy Businesses for unbilled contract revenue and unearned revenue, respectively. See (e) below.
(d)
Of the subtractions from unearned revenue, $
3
million was included in the balances as of January 1, 2023.
(e)
Following the sale of all of the stock of the Clean Energy Businesses, Con Edison received substantially all contract revenue, net of certain costs incurred, for a battery storage project located in Imperial County, California. See Note Q.
Note L –
Current Expected Credit Losses
Allowance for Uncollectible Accounts
The Utilities’ “Account receivable – customers” balance consists of utility bills due (bills are generally due the month following billing) from customers who have energy delivered, generated, or services provided by the Utilities. The balance also reflects the Utilities’ purchase of receivables from energy service companies to support the retail choice programs.
“Other receivables” balance generally reflects costs billed by the Utilities for goods and services provided to external parties, such as accommodation work for private parties and certain governmental entities, real estate rental and pole attachments.
The Companies develop expected loss estimates using past events data and consider current conditions and future reasonable and supportable forecasts. Changes to the Utilities’ reserve balances that result in write-offs of customer accounts receivable balances above existing rate allowances are not reflected in rates during the term of the current rate plans. For the Utilities’ customer accounts receivable allowance for uncollectible accounts, past events considered include write-offs relative to customer accounts receivable; current conditions include macro-and micro-economic conditions related to trends in the local economy, bankruptcy rates and aged customer accounts receivable balances, among other factors; and forecasts about the future include assumptions related to the level of write-offs and recoveries. Generally, the Utilities write off customer accounts receivable as uncollectible 90 days after the account is disconnected for non-payment, or the account is closed during the collection process.
Other receivables allowance for uncollectible accounts is calculated based on a historical average of collections relative to total other receivables, including current receivables. Current macro- and micro-economic conditions are also considered when calculating the current reserve. Probable outcomes of pending litigation, whether favorable or unfavorable to the Companies, are also included in the consideration.
Starting in 2020, the potential economic impact of the COVID-19 pandemic was also considered in forward-looking projections rela
ted to write-off and recovery rates and resulted in increases to the allowance for uncollectible accounts. The increases to the allowance for customer uncollectible accounts for Con Edison and CECONY were $
40
million and $
36
million, respectively, for the three months ended June 30, 2024 and $
74
million and $
66
million, respectively, for the six month
s ended June 30, 2024. The increases (decreases) to the allowance for customer uncollectible accounts for Con Edison and CECONY were
$
31
million
and
$
30
million
, respectively, for the three months ended
June 30, 2023
and were
$(
47
) million
and
$(
48
) million
, respectively, for the six months ended
June 30, 2023
primarily due to credits issued pursuant to New York State COVID-19 arrears assistance programs.
36
Customer accounts receivable and the associated allowance for uncollectible accounts are included in the line “Accounts receivable – customers” on the Companies’ consolidated balance sheets. Other receivables and the associated allowance for uncollectible accounts are included in “Other receivables” on the consolidated balance sheets.
The table below presents a rollforward by major portfolio segment type for the three and six months ended June 30, 2024 and 2023:
For the Three Months Ended June 30,
Con Edison
CECONY
Accounts receivable - customers
Other receivables
Accounts receivable - customers
Other receivables
(Millions of Dollars)
2024
2023
2024
2023
2024
2023
2024
2023
Allowance for credit losses
Beginning Balance at April 1,
$
394
$
244
$
17
$
10
$
383
$
236
$
12
$
8
Recoveries
3
4
—
—
3
3
—
—
Write-offs
(
29
)
(
44
)
—
—
(
28
)
(
41
)
—
—
Reserve adjustments
66
71
8
18
61
68
9
16
Ending Balance June 30,
$
434
$
275
$
25
$
28
$
419
$
266
$
21
$
24
For the Six Months Ended June 30, 2024
Con Edison
CECONY
Accounts receivable - customers
Other receivables
Accounts receivable - customers
Other receivables
(Millions of Dollars)
2024
2023
2024
2023
2024
2023
2024
2023
Allowance for credit losses
Beginning Balance at January 1,
$
360
$
322
$
13
$
10
$
353
$
314
$
9
$
7
Recoveries
17
8
—
—
14
7
—
—
Write-offs
(
95
)
(
91
)
—
(
1
)
(
90
)
(
89
)
—
—
Reserve adjustments
152
36
12
19
142
34
12
17
Ending Balance June 30,
$
434
$
275
$
25
$
28
$
419
$
266
$
21
$
24
Note M –
Financial Information by Business Segment
Con Edison’s principal business segments are CECONY’s regulated utility activities, O&R’s regulated utility activities and Con Edison Transmission. CECONY’s principal business segments are its regulated electric, gas and steam utility activities.
The financial data for the business segments for the three and six months ended June 30, 2024 and 2023 were as follows:
For the Three Months Ended June 30,
Operating
revenues
Inter-segment
revenues
Depreciation and
amortization
Operating
income (loss)
(Millions of Dollars)
2024
2023
2024
2023
2024
2023
2024
2023
CECONY
Electric
$
2,370
$
2,144
$
5
$
5
$
345
$
339
$
272
$
232
Gas
538
531
3
2
112
106
85
83
Steam
88
69
18
18
25
25
(
43
)
(
53
)
Consolidation adjustments
—
—
(
26
)
(
25
)
—
—
—
—
Total CECONY
$
2,996
$
2,744
$—
$—
$
482
$
470
$
314
$
262
O&R
Electric
180
159
—
—
20
18
12
13
Gas
44
41
—
—
9
8
(
3
)
(
2
)
Total O&R
$
224
$
200
$—
$—
$
29
$
26
$
9
$
11
Con Edison Transmission
1
1
—
—
—
—
(
2
)
(
2
)
Other (a)
(
1
)
(
1
)
—
—
1
—
(
1
)
13
Total Con Edison
$
3,220
$
2,944
$—
$—
$
512
$
496
$
320
$
284
(a) Other includes the parent company, Con Edison’s tax equity investments, the deferred project held for sale and consolidation adjustments.
37
For the Six Months Ended June 30,
Operating
revenues
Inter-segment
revenues
Depreciation and
amortization
Operating
income/(loss)
(Millions of Dollars)
2024
2023
2024
2023
2024
2023
2024
2023
CECONY
Electric
$
4,812
$
4,500
$
10
$
9
$
715
$
683
$
512
$
424
Gas
1,781
1,822
5
4
226
211
701
642
Steam
374
375
37
37
52
49
91
5
Consolidation adjustments
—
—
(
52
)
(
50
)
—
—
—
—
Total CECONY
$
6,967
$
6,697
$—
$—
$
993
$
943
$
1,304
$
1,071
O&R
Electric
370
341
—
—
40
36
25
14
Gas
157
180
—
—
18
15
39
38
Total O&R
$
527
$
521
$—
$—
$
58
$
51
$
64
$
52
Clean Energy Businesses (a)
—
129
—
—
—
—
—
37
Con Edison Transmission
2
2
—
—
1
—
(
5
)
(
4
)
Other (b)
(
1
)
(
2
)
—
—
(
1
)
—
(
32
)
866
Total Con Edison
$
7,495
$
7,347
$—
$—
$
1,051
$
994
$
1,331
$
2,022
(a)
On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. As a result of this sale, the Clean Energy Businesses are no longer a principal segment. See Note Q and Note R.
(b) Other includes the parent company, Con Edison’s tax equity investments, the deferred project held for sale and consolidation adjustments.
Note N –
Derivative Instruments and Hedging Activities
Con Edison’s subsidiaries hedge market price fluctuations associated with physical purchases and sales of electricity, natural gas, steam and, to a lesser extent, refined fuels by using derivative instruments including futures, forwards, basis swaps, options, transmission congestion contracts and financial transmission rights contracts. These are economic hedges, for which the Utilities do not elect hedge accounting. The Companies use economic hedges to manage commodity price risk in accordance with provisions set by state regulators. The volume of hedging activity at the Utilities depends upon the forecasted volume of physical commodity supply to meet customer needs, and program costs or benefits are recovered from or credited to full-service customers, respectively. Derivatives are recognized on the consolidated balance sheet at fair value (see Note O), unless an exception is available under the accounting rules for derivatives and hedging. Qualifying derivative contracts that have been designated as normal purchases or normal sales contracts are not reported at fair value under the accounting rules
.
38
The fair values of the Companies’ derivatives including the offsetting of assets and liabilities on the consolidated balance sheet at June 30, 2024 and December 31, 2023 were:
(Millions of Dollars)
2024
2023
Balance Sheet Location
Gross Amounts of
Recognized
Assets (Liabilities)
Gross
Amounts
Offset
Net Amounts
of Assets
(Liabilities) (a)
Gross Amounts of
Recognized
Assets (Liabilities)
Gross
Amounts
Offset
Net Amounts
of Assets
(Liabilities) (a)
Con Edison
Fair value of derivative assets
Current
$
84
$(
49
)
$
35
(b)
$
83
$(
38
)
$
45
(b)
Noncurrent
51
(
30
)
21
77
(
29
)
48
Total fair value of derivative assets
$
135
$(
79
)
$
56
$
160
$(
67
)
$
93
Fair value of derivative liabilities
Current
$(
131
)
$
55
$(
76
)
(b)
$(
230
)
$
52
$(
178
)
(b)
Noncurrent
(
107
)
33
(
74
)
(
154
)
33
(
121
)
Total fair value of derivative liabilities
$(
238
)
$
88
$(
150
)
$(
384
)
$
85
$(
299
)
Net fair value derivative assets (liabilities)
$(
103
)
$
9
$(
94
)
$(
224
)
$
18
$(
206
)
CECONY
Fair value of derivative assets
Current
$
78
$(
48
)
$
30
(b)
$
78
$(
35
)
$
43
(b)
Noncurrent
47
(
28
)
19
76
(
27
)
49
Total fair value of derivative assets
$
125
$(
76
)
$
49
$
154
$(
62
)
$
92
Fair value of derivative liabilities
Current
$(
122
)
$
53
$(
69
)
(b)
$(
217
)
$
48
$(
169
)
(b)
Noncurrent
(
97
)
32
(
65
)
(
139
)
31
(
108
)
Total fair value of derivative liabilities
$(
219
)
$
85
$(
134
)
$(
356
)
$
79
$(
277
)
Net fair value derivative assets (liabilities)
$(
94
)
$
9
$(
85
)
$(
202
)
$
17
$(
185
)
(a)
Derivative instruments and collateral were offset on the consolidated balance sheet as applicable under the accounting rules. The Companies enter into master agreements for their commodity derivatives. These agreements typically provide offset in the event of contract termination. In such case, generally the non-defaulting party’s payable will be offset by the defaulting party’s payable. The non-defaulting party will customarily notify the defaulting party within a specific time period and come to an agreement on the early termination amount.
(b)
At June 30, 2024, margin deposits for Con Edison ($
3
million and $(
7
) million) were classified as derivative assets and derivative liabilities, respectively, and for CECONY ($
3
million and $(
2
) million) were classified as derivative assets and derivative liabilities, respectively, on the consolidated balance sheet, but not included in the table. At December 31, 2023 margin deposits for Con Edison ($
7
million and $(
15
) million) were classified as derivative assets and derivative liabilities, respectively, and for CECONY ($
6
million and $(
10
) million) were classified as derivative assets and derivative liabilities, respectively, on the consolidated balance sheet, but not included in the table. Margin is collateral, typically cash, that the holder of a derivative instrument is required to deposit in order to transact on an exchange and to cover its potential losses with its broker or the exchange.
The Utilities generally recover their prudently incurred fuel, purchased power and gas costs, including hedging gains and losses, in accordance with rate provisions approved by the applicable state utility regulators. In accordance with the accounting rules for regulated operations, the Utilities record a regulatory asset or regulatory liability to defer recognition of unrealized gains and losses on their electric and gas derivatives. As gains and losses are realized in future periods, they will be recognized as purchased power, gas and fuel costs in the Companies’ consolidated income statements.
39
The following table presents the realized and unrealized gains or losses on derivatives that have been deferred or recognized in earnings for the three and six months ended June 30, 2024 and 2023:
For the Three Months Ended June 30,
Con Edison
CECONY
(Millions of Dollars)
Financial Statement Location
2024
2023
2024
2023
Pre-tax gains (losses) deferred in accordance with accounting rules for regulated operations:
Current
Regulatory liabilities
$(
57
)
$(
61
)
$(
55
)
$(
57
)
Noncurrent
Regulatory liabilities
(
21
)
9
(
23
)
8
Total deferred gains (losses)
$(
78
)
$(
52
)
$(
78
)
$(
49
)
Current
Regulatory assets
$
55
$
40
$
54
$
37
Current
Recoverable energy costs
(
74
)
(
84
)
(
68
)
(
81
)
Noncurrent
Regulatory assets
18
99
17
96
Total deferred gains (losses)
$(
1
)
$
55
$
3
$
52
Net deferred gains (losses) (a)
$(
79
)
$
3
$(
75
)
$
3
For the Six Months Ended June 30,
Con Edison
CECONY
(Millions of Dollars)
Financial Statement Location
2024
2023
2024
2023
Pre-tax gains (losses) deferred in accordance with accounting rules for regulated operations:
Current
Regulatory liabilities
$(
14
)
$(
210
)
$(
15
)
$(
194
)
Noncurrent
Regulatory liabilities
(
23
)
(
117
)
(
25
)
(
104
)
Total deferred gains (losses)
$(
37
)
$(
327
)
$(
40
)
$(
298
)
Current
Regulatory assets
$
122
$
25
$
117
$
25
Current
Recoverable energy costs
(
188
)
(
376
)
(
172
)
(
355
)
Noncurrent
Regulatory assets
48
(
34
)
43
(
34
)
Total deferred gains (losses)
$(
18
)
$(
385
)
$(
12
)
$(
364
)
Net deferred gains (losses) (a)
$(
55
)
$(
712
)
$(
52
)
$(
662
)
Pre-tax gains (losses) recognized in income
Gas purchased for resale (b)
$
—
$
4
$
—
$
—
Non-utility revenue (b)
—
17
—
—
Other operations and maintenance expense
1
—
1
—
Other interest expense (b)
—
5
—
—
Total pre-tax gains (losses) recognized in income
$
1
$
26
$
1
$
—
(a)
Unrealized net deferred losses on electric and gas derivatives for the Utilities decreased as a result of higher electric and gas commodity prices during the six months ended June 30, 2024. Upon settlement, short-term deferred derivative losses generally increase the recoverable costs of electric and gas purchases.
(b)
Comprised of realized and unrealized gains and losses on the derivative contracts of the Clean Energy Businesses. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note Q.
The following table presents the hedged volume of Con Edison’s and CECONY’s commodity derivative transactions at June 30, 2024:
Electric Energy
(MWh) (a)(b)
Capacity (MW-mos) (a)
Natural Gas
(Dt) (a)(b)
Refined Fuels
(gallons)
Con Edison
36,200,145
37,500
315,730,000
3,276,000
CECONY
32,810,675
29,400
295,700,000
3,276,000
(a)
Volumes are reported net of long and short positions, except natural gas collars where the volumes of long positions are reported.
(b)
Excludes electric congestion and gas basis swap contracts which are associated with electric and gas contracts and hedged volumes.
The Companies are exposed to credit risk related to transactions entered into primarily for the various energy supply and hedging activities by the Utilities. Credit risk relates to the loss that may result from a counterparty’s nonperformance. The Companies use credit policies to manage this risk, including an established credit approval process, monitoring of counterparty limits, netting provisions within agreements, collateral or prepayment arrangements, credit insurance and credit default swaps. The Companies measure credit risk exposure as the replacement cost for open energy commodity and derivative positions plus amounts owed from counterparties for
40
settled transactions. The replacement cost of open positions represents unrealized gains, net of any unrealized losses where the Companies have a legally enforceable right to offset.
At June 30, 2024, Con Edison and CECONY had
$
16
million and $
13
million, respectively, of credit exposure in connection with open energy supply net receivables and hedging activities, net of collateral. Con Edison’s net credit exposure consisted of $
13
million with investment-grade counterparties and $
3
million with commodity exchange brokers. CECONY’s net credit exposure consisted of $
10
million with investment-grade counterparties and $
3
million with commodity exchange brokers. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note Q and Note R.
The collateral requirements associated with, and settlement of, derivative transactions are included in net cash flows from operating activities in the Companies’ consolidated statements of cash flows. Most derivative instrument contracts contain provisions that may require a party to provide collateral on its derivative instruments that are in a net liability position. The amount of collateral to be provided will depend on the fair value of the derivative instruments and the party’s credit ratings.
The following table presents the aggregate fair value of the Companies’ derivative instruments with credit-risk-related contingent features that are in a net liability position, the collateral posted for such positions and the additional collateral that would have been required to be posted had the lowest applicable credit rating been reduced one level and to below investment grade at June 30, 2024:
(Millions of Dollars)
Con Edison (a)
CECONY (a)
Aggregate fair value – net liabilities
$
128
$
116
Collateral posted
145
145
Additional collateral (b) (downgrade one level from current ratings)
8
—
Additional collateral (b)(c) (downgrade to below investment grade from current ratings)
105
88
(a)
Non-derivative transactions for the purchase and sale of electricity and gas and qualifying derivative instruments, that have been designated as normal purchases or normal sales, are excluded from the table. These transactions primarily include purchases of electricity from independent system operators. In the event the Utilities are no longer extended unsecured credit for such purchases, the Companies would be required to post $
2
million of additional collateral at June 30, 2024. For certain other such non-derivative transactions, the Companies could be required to post collateral under certain circumstances, including in the event counterparties had reasonable grounds for insecurity.
(b)
The Companies measure the collateral requirements by taking into consideration the fair value amounts of derivative instruments that contain credit-risk-related contingent features that are in a net liability position plus amounts owed to counterparties for settled transactions and amounts required by counterparties for minimum financial security. The fair value amounts represent unrealized losses, net of any unrealized gains where the Companies have a legally enforceable right to offset.
(c)
Derivative instruments that are net assets have been excluded from the table. At June 30, 2024, if Con Edison had been downgraded to below investment grade, it would have been required to post additional collateral for such derivative instruments of $
16
million.
Note O –
Fair Value Measurements
The accounting rules for fair value measurements and disclosures define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in a principal or most advantageous market. Fair value is a market-based measurement that is determined based on inputs, that refer broadly to assumptions that market participants use in pricing assets or liabilities. These inputs can be readily observable, market corroborated, or generally unobservable firm inputs. The Companies often make certain assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, and the risks inherent in the inputs to valuation techniques. The Companies use valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs.
The accounting rules for fair value measurements and disclosures established a fair value hierarchy, that prioritizes the inputs to valuation techniques used to measure fair value in three broad levels. The rules require that assets and liabilities be classified in their entirety based on the level of input that is significant to the fair value measurement. Assessing the significance of a particular input may require judgment considering factors specific to the asset or liability and may affect the valuation of the asset or liability and their placement within the fair value hierarchy. The Companies classify fair value balances based on the fair value hierarchy defined by the accounting rules for fair value measurements and disclosures as follows:
•
Level 1 – Consists of assets or liabilities whose value is based on unadjusted quoted prices in active markets at the measurement date. An active market is one in which transactions for assets or liabilities occur with sufficient frequency and volume to provide pricing information on an ongoing basis. This category includes contracts traded on active exchange markets valued using unadjusted prices quoted directly from the exchange.
41
•
Level 2 – Consists of assets or liabilities valued using industry standard models and based on prices, other than quoted prices within Level 1, that are either directly or indirectly observable as of the measurement date. The industry standard models consider observable assumptions including time value, volatility factors and current market and contractual prices for the underlying commodities, in addition to other economic measures. This category includes contracts traded on active exchanges or in over-the-counter markets priced with industry standard models.
•
Level 3 – Consists of assets or liabilities whose fair value is estimated based on internally developed models or methodologies using inputs that are generally less readily observable and supported by little, if any, market activity at the measurement date. Unobservable inputs are developed based on the best available information and subject to cost benefit constraints. This category includes contracts priced using models that are internally developed and contracts placed in illiquid markets. It also includes contracts that expire after the period of time for which quoted prices are available and internal models are used to determine a significant portion of the value.
For information on the measurement of Con Edison's investment in MVP that was measured at fair value on a non-recurring basis, see Note A.
Assets and liabilities measured at fair value on a recurring basis as of June 30, 2024 and December 31, 2023 are summarized below.
2024
2023
(Millions of Dollars)
Level 1
Level 2
Level 3
Netting
Adjustment (d)
Total
Level 1
Level 2
Level 3
Netting
Adjustment (d)
Total
Con Edison
Derivative assets:
Commodity (a)(b)(c)
$
4
$
100
$
2
$(
47
)
$
59
$
6
$
146
$
2
$(
54
)
$
100
Mutual Funds (a)(b)
540
—
—
—
540
505
—
—
—
505
Cash Value of Life Insurance Policies (a)(b)
—
128
—
—
128
—
118
—
—
118
Total assets
$
544
$
228
$
2
$(
47
)
$
727
$
511
$
264
$
2
$(
54
)
$
723
Derivative liabilities:
Commodity (a)(b)(c)
$
12
$
187
$
13
$(
55
)
157
$
22
$
347
$
10
$(
65
)
$
314
CECONY
Derivative assets:
Commodity (a)(b)(c)
$
4
$
95
$
1
$(
47
)
$
53
$
6
$
143
$
1
$(
52
)
$
98
Mutual Funds (a)(b)
523
—
—
—
523
488
—
—
—
488
Cash Value of Life Insurance Policies (a)(b)
—
122
—
—
122
—
113
—
—
113
Total assets
$
527
$
217
$
1
$(
47
)
$
698
$
494
$
256
$
1
$(
52
)
$
699
Derivative liabilities:
Commodity (a)(b)(c)
$
10
$
177
$
7
$(
57
)
137
$
20
$
326
$
6
$(
65
)
$
287
(a)
The Companies’
policy
is to review the fair value hierarchy and recognize transfers into and transfers out of the levels at the end of each reporting period
. Con Edison and CECON
Y had an
immaterial
amount of commodity derivative assets and liabilities transferred from level 3 to level 2 during the six months ended June 30, 2024 because of availability of observable market data due to the decrease in the terms of certain contracts from beyond three years as of December 31, 2023 to less than three years as of June 30, 2024. Con Edison and CECONY had an
immaterial
amount of derivative assets and $
9
million and $
6
million of commodity derivative liabilities, respectively, transferred from level 3 to level 2 during the year ended December 31, 2023 because of availability of observable market data due to the decrease in the terms of certain contracts from beyond three years as of September 30, 2023 to less than three years as of December 31, 2023.
(b)
Level 2 assets and liabilities include investments held in the deferred compensation plan and/or non-qualified retirement plans, exchange-traded contracts where there is insufficient market liquidity to warrant inclusion in Level 1, and certain over-the-counter derivative instruments for electricity, refined products and natural gas. Derivative instruments classified as Level 2 are valued using industry standard models that incorporate corroborated observable inputs, such as pricing services or prices from similar instruments that trade in liquid markets, time value and volatility factors.
(c)
The accounting rules for fair value measurements and disclosures require consideration of the impact of nonperformance risk (including credit risk) from a market participant perspective in the measurement of the fair value of assets and liabilities. At June 30, 2024 and December 31, 2023, the Companies determined that nonperformance risk would have no material impact on their financial position or results of operations.
(d)
Amounts represent the impact of legally-enforceable master netting agreements that allow the Companies to net gain and loss positions and cash collateral held or placed with the same counterparties.
The employees in the Companies’ risk management group develop and maintain the Companies’ valuation policies and procedures for, and verify pricing and fair value valuation of, commodity derivatives. Under the Companies’ policies and procedures, multiple independent sources of information are obtained for forward price curves used to
42
value commodity derivatives. Fair value and changes in fair value of commodity derivatives are reported monthly to the Companies’ risk committees, comprised of officers and employees of the Companies that oversee energy hedging at the Utilities. The risk management group reports to the Companies’ Vice President and Treasurer.
Fair Value of Level 3 at June 30, 2024
Valuation
Techniques
Unobservable Inputs
Range
(Millions of Dollars)
Con Edison – Commodity
Electricity
$(
1
)
Discounted Cash Flow
Forward energy prices (a)
$
37.50
-$
129.65
per MWh
Electricity
(
11
)
Discounted Cash Flow
Forward capacity prices (a)
$
1.92
-$
7.53
per kW-month
Transmission Congestion Contracts
1
Discounted Cash Flow
Inter-zonal forward price curves adjusted for historical zonal losses (b)
$
0.35
-$
2.67
per MWh
Total Con Edison—Commodity
$(
11
)
CECONY – Commodity
Electricity
$(
2
)
Discounted Cash Flow
Forward energy prices (a)
$
37.50
-$
129.65
per MWh
Electricity
(
5
)
Discounted Cash Flow
Forward capacity prices (a)
$
1.92
-$
7.53
per kW-month
Transmission Congestion Contracts
1
Discounted Cash Flow
Inter-zonal forward price curves adjusted for historical zonal losses (b)
$
0.35
-$
2.67
per MWh
Total CECONY—Commodity
$(
6
)
(a)
Generally, increases (decreases) in this input in isolation would result in a higher (lower) fair value measurement.
(b)
Generally, increases (decreases) in this input in isolation would result in a lower (higher) fair value measurement.
The table listed below provides a reconciliation of the beginning and ending net balances for assets and liabilities measured at fair value as of June 30, 2024 and 2023 and classified as Level 3 in the fair value hierarchy:
For the Three Months Ended June 30,
Con Edison
CECONY
(Millions of Dollars)
2024
2023
2024
2023
Beginning balance as of April 1,
$
—
$(
11
)
$
—
$(
5
)
Included in earnings
(
2
)
(
2
)
(
1
)
(
1
)
Included in regulatory assets and liabilities
(
12
)
6
(
6
)
2
Settlements
3
(
1
)
1
(
1
)
Transfer out of level 3
—
1
—
1
Ending balance as of June 30,
$(
11
)
$(
7
)
$(
6
)
$(
4
)
For the Six Months Ended June 30,
Con Edison
CECONY
(Millions of Dollars)
2024
2023
2024
2023
Beginning balance as of January 1,
$(
8
)
$
15
$(
5
)
$(
6
)
Included in earnings
(
5
)
(
4
)
(
2
)
(
2
)
Included in regulatory assets and liabilities
(
3
)
15
(
1
)
9
Settlements
5
2
2
1
Decrease due to the sale of the Clean Energy Businesses (a)
—
(
29
)
—
—
Transfer out of level 3
—
(
6
)
—
(
6
)
Ending balance as of June 30,
$(
11
)
$(
7
)
$(
6
)
$(
4
)
(a) On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note Q and Note R.
For the Utilities, realized gains and losses on Level 3 commodity derivative assets and liabilities are reported as part of purchased power, gas and fuel costs. The Utilities generally recover these costs in accordance with rate provisions approved by the applicable state public utilities regulators. See Note A. Unrealized gains and losses for commodity derivatives are generally deferred on the consolidated balance sheet in accordance with the accounting rules for regulated operations.
43
For the Clean Energy Businesses, realized and unrealized gains and losses on Level 3 commodity derivative assets and liabilities were repor
ted in non-utility revenues ($
17
million loss) on the consolidated income statement for the six months ended June 30, 2023. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses and amounts for 2023 are shown through the date of sale. See Note Q and Note R.
Note P –
Related Party Transactions
The NYSPSC generally requires that the Utilities and Con Edison’s other subsidiaries be operated as separate entities. The Utilities and the other subsidiaries are required to have separate operating employees and operating officers of the Utilities may not be operating officers of the other subsidiaries. The Utilities may provide administrative and other services to, and receive such services from, Con Edison and its other subsidiaries only pursuant to cost allocation procedures approved by the NYSPSC. Transfers of assets between the Utilities and Con Edison or its other subsidiaries may be made only as approved by the NYSPSC. The debt of the Utilities is to be raised directly by the Utilities and not derived from Con Edison. Without the prior permission of the NYSPSC, the Utilities may not make loans to, guarantee the obligations of, or pledge assets as security for the indebtedness of Con Edison or its other subsidiaries. The NYSPSC limits the dividends that the Utilities may pay Con Edison. As a result, substantially all of the net assets of CECONY and O&R ($
19,570
million and $
1,084
million, respectively), at June 30, 2024, are considered restricted net assets. The NYSPSC may impose additional measures to separate, or “ring fence,” the Utilities from Con Edison and its other subsidiaries.
The costs of administrative and other services provided by CECONY to, and received by it from, Con Edison and its other subsidiaries for the three and six months ended June 30, 2024 and 2023 were as follows:
For the Three Months Ended June 30,
CECONY (a)
(Millions of Dollars)
2024
2023
Cost of services provided
$
35
$
33
Cost of services received
$
21
$
21
For the Six Months Ended June 30,
CECONY (a)
(Millions of Dollars)
2024
2023
Cost of services provided
$
68
$
67
Cost of services received
$
41
$
40
(a) On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note Q and Note R.
In addition, CECONY and O&R have joint gas supply arrangements in connection with which CECONY sold to O&R, $
14
million and $
13
million of natural gas for the three months ended June 30, 2024 and 2023, respectively, and $
38
million and $
46
million for the six months ended June 30, 2024 and 2023, respectively. These amounts are net of the effect of related hedging transactions.
At June 30, 2024 and December 31, 2023, CECONY's net receivable from Con Edison for income taxes were $
57
million and $
110
million, respectively.
The Utilities perform work and incur expenses on behalf of New York Transco, a company in which Con Edison Transmission has a
45.7
percent interest in New York Transco's New York Energy Solution project and a
41.7
percent interest in New York Transco's share of the Propel NY Energy project that is jointly owned with the New York Power Authority. The Utilities bill New York Transco for such work and expenses in accordance with established policies. For the three months ended June 30, 2024 and 2023, the amounts billed (refunded) by the Utilities to New York Transco were $(
2
) million and $
2
million, respectively, and for the six months ended June 30, 2024 and 2023, the amounts were $(
1
) million and $
6
million, respectively.
CECONY has a
20
-year transportation contract with Mountain Valley Pipeline, LLC (MVP) for
200,000
Dts per day of capacity. Con Edison Transmission's interest in MVP is expected to be approximate
ly
6.7
perc
ent. See "Investment in Mountain Valley Pipeline, LLC (MVP)" in Note A. In October 2017, the Environmental Defense Fund and the Natural Resource Defense Council requested the NYSPSC to prohibit CECONY from recovering costs under its contract with MVP unless CECONY can demonstrate that the contract is in the public interest. CECONY advised the NYSPSC that it would respond to the request if the NYSPSC opened a proceeding to consider this request.
44
FERC has authorized CECONY to lend funds to O&R for a period of not more than
12
months, in an amount not to exceed $
250
million, at prevailing market rates. At June 30, 2024 and December 31, 2023 there were
no
outstanding loans to O&R.
The Consolidated Edison Foundation, Inc. (the Foundation), established in December 2023, is a non-consolidated not-for-profit corporation funded by Con Edison that plans to make contributions to selected charitable organizations. In April 2024, Con Edison made a $
12
million contribution to the Foundation that Con Edison accrued as an expense in “Other Income and Deductions” within its consolidated income statement for the year ended December 31, 2023.
Note Q –
Dispositions
During the first nine months of 2022, Con Edison considered strategic alternatives with respect to the Clean Energy Businesses. On October 1, 2022, following the conclusion of such review and to allow for continued focus on the Utilities and their clean energy transition, Con Edison entered into a purchase and sale agreement pursuant to which Con Edison agreed to sell all of the stock of the Clean Energy Businesses to RWE Renewables Americas, LLC, a subsidiary of RWE for a total of $
6,800
million, subject to closing adjustments. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses to RWE for $
3,993
million. The preliminary purchase price at closing was adjusted (i) upward for certain cash and cash equivalents, (ii) downward for certain indebtedness and debt-like items, (iii) downward for certain transaction expenses, (iv) downward to the extent that the net working capital varied from a set target, (v) upward to the extent that capital investments incurred prior to the closing of the transaction varied from a set budget, and (vi) downward
by the value allocated to Broken Bow II, a project that was not able to be conveyed to RWE upon closing of the transaction. The process to finalize the purchase price was completed during the second quarter of 2024. The final purchase price was subject to customary adjustments for timing differences and a final valuation report, among other factors. The transaction was completed at arm’s length and RWE was not, and will not be, considered a related party to Con
Edison.
Con Edison's preliminary gain on the sale of all of the stock of the Clean Energy Businesses was $
867
million ($
804
million, after tax) for the six months ended June 30, 2023, including $
13
million for the three months ended June 30, 2023. Con Edison's preliminary gain on the sale of all of the stock of the Clean Energy Businesses was $
865
million ($
767
million, after tax) for the year ended December 31, 2023. Cumulatively through June 30, 2024 the gain on the sale of all of the stock of the Clean Energy Businesses was $
835
million ($
745
million, after tax), reflecting a downward adjustment of $
30
million ($
22
million after-tax) for the six months then ended, resulting from certain customary closing adjustments. The portion of the gain attributable to the non-controlling interest retained in certain tax-equity projects was not material. The sale included all assets, operations and projects of the Clean Energy Businesses with the exception of tax equity interests in
three
projects, described below, and
one
deferred project, Broken Bow II, a
75
MW nameplate capacity wind power project located in Nebraska. See Note R. Transfer of the project depends on one outstanding counterparty consent, and if and when such consent is obtained within
two years
of the sale of all of the stock of the Clean Energy Businesses, i.e., by February 28, 2025, the project will transfer and the corresponding value, subject to adjustment, will be paid to Con Edison. RWE Renewables Americas, LLC operates the facility on behalf of Con Edison pursuant to certain service agreements, for which the fees are not material.
Con Edison retained the Clean Energy Businesses' tax equity investment interest in the Crane solar project and another tax equity investment interest in
two
solar projects located in Virginia. These tax equity partnerships produced renewable energy tax credits that can be used to reduce Con Edison’s federal income tax. These tax credits are subject to recapture, in whole or in part, if the assets are sold within a
five-year
period beginning on the date on which the assets are placed in service. Con Edison will continue to employ HLBV accounting for its interest
s in these tax equity partnerships. The combined carrying value of the retained tax equity interests is approximately
$
6
million a
t June 30, 2024.
Con Edison also retained any post-sale deferred income taxes (federal and state income taxes, including tax attributes), any valuation allowances associated with the deferred tax assets, all current federal taxes and New York State taxes and the estimated liability for uncertain tax positions. The unamortized deferred investment tax credits of the Clean Energy Businesses were recognized in full upon the completion of the sale of all of the stock of the Clean Energy Businesses.
Concurrent with entering into the purchase and sale agreement,
Con Edison incurred costs in the normal course of the sale process. Transaction costs of $
1
million ($
1
million after-tax) and $
12
million ($
8
million after-tax), were recorded in the three and six months ended June 30, 2023, respectively, and were
immaterial
for the three and six
45
months ended June 30, 2024. Also, depreciation and amortization expense of approximately $
41
million ($
28
million after-tax) were not recorded on the assets of the Clean Energy Businesses in 2023 through the closing of the transaction.
Following the sale of all of the stock of the Clean Energy Businesses and pursuant to a reimbursement and indemnity agreement with RWE, Con Edison remains responsible for certain potential costs related to a battery storage project located in Imperial County, California. Con Edison's exposure under the agreement could range up to approximately $
172
million. As of June 30, 2024, no material amounts were recorded as liabilities on Con Edison's consolidated balance sheet related to this agreement.
The following table shows the pre-tax operating income for the Clean Energy Businesses. The 2023 period shown is through the date of the sale of the Clean Energy Businesses; there is no applicable data for the three and six months ended
June 30, 2024
.
On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note Q. The sale included all assets, operations and projects of the Clean Energy Businesses with the exception of tax equity interests in
three
projects and
one
deferred project, Broken Bow II, a
75
MW nameplate capacity wind power project located in Nebraska. Transfer of the project from Con Edison to RWE depends on one outstanding counterparty consent, and if and when such consent is obtained within
two years
of the sale of all of the stock of the Clean Energy Businesses, i.e., by February 28, 2025, the project will transfer. RWE Renewables Americas, LLC operates the facility on behalf of Con Edison pursuant to certain service agreements for which the fees are not material.
At
June 30, 2024
, the carrying amounts of the major classes of assets and liabilities of Broken Bow II that are expected to be sold are presented on a held-for-sale basis, and accordingly exclude net deferred tax liability balances, as follows:
(Millions of Dollars)
June 30,
2024
ASSETS
CURRENT ASSETS
Cash and temporary cash investments
$
1
Accrued unbilled revenue
1
Restricted cash
6
Other current assets
2
TOTAL CURRENT ASSETS
10
NON-UTILITY PLANT
Non-utility property, net accumulated depreciation
76
NET PLANT
76
OTHER NONCURRENT ASSETS
Intangible assets less accumulated amortization
72
Operating lease right-of-use asset
7
TOTAL OTHER NONCURRENT ASSETS
79
TOTAL ASSETS
$
165
46
(Millions of Dollars)
June 30,
2024
LIABILITIES
CURRENT LIABILITIES
Long-term debt due within one year
$
2
Operating lease liabilities
2
Other current liabilities
7
TOTAL CURRENT LIABILITIES
11
NONCURRENT LIABILITIES
Asset retirement obligations
3
Operating lease liabilities
5
TOTAL NONCURRENT LIABILITIES
8
LONG-TERM DEBT
59
TOTAL LIABILITIES
$
78
47
Item 2: Management’s Discussion and Analysis of Financial Condition and Results of Operations
This combined management’s discussion and analysis of financial condition and results of operations (MD&A) relates to the consolidated financial statements (the Second Quarter Financial Statements) included in this report of two separate registrants: Consolidated Edison, Inc. (Con Edison) and Consolidated Edison Company of New York, Inc. (CECONY). As used in this report, the term the “Companies” refers to Con Edison and CECONY. CECONY is a subsidiary of Con Edison and, as such, information in this MD&A about CECONY applies to Con Edison.
This MD&A should be read in conjunction with the Second Quarter Financial Statements and the notes thereto and the MD&A in Item 7 of the Companies’ combined Annual Report on Form 10-K for the year ended December 31, 2023 (File Nos.1-14514 and 1-01217, the Form 10-K) and the MD&A in Part 1, Item 2 of the Companies' combined Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2024 (File Nos. 1-14514 and 1-01217).
Information in any item of this report referred to in this discussion and analysis is incorporated by reference herein. The use of terms such as “see” or “refer to” shall be deemed to incorporate by reference into this discussion and analysis the information to which reference is made.
Con Edison, incorporated in New York State in 1997, is a holding company that owns all of the outstanding common stock of CECONY, Orange and Rockland Utilities, Inc. (O&R) and Con Edison Transmission, Inc. As used in this report, the term the “Utilities” refers to CECONY and O&R.
Con Edison
CECONY
O&R
Con Edison Transmission
•
RECO
Con Edison’s principal business operations are those of the Utilities and Con Edison Transmission. CECONY’s principal business operations are its regulated electric, gas and steam delivery businesses. O&R’s principal business operations are its regulated electric and gas delivery businesses. Con Edison Transmission, through its subsidiaries, invests in electric transmission projects supporting Con Edison's effort to transition to clean, renewable energy and manages, through joint ventures, both electric and gas assets while seeking to develop electric transmission projects that will bring clean, renewable electricity to customers focusing on New York and the Northeast. See "Investments" in Note A to the Second Quarter Financial Statements. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note Q and Note R to the Second Quarter Financial Statements.
Con Edison seeks to provide shareholder value through continued dividend growth, supported by earnings growth in regulated utilities and contracted electric and gas assets. Con Edison invests to provide reliable, resilient, safe and clean energy critical for its New York and New Jersey customers. Con Edison is a responsible neighbor, helping the communities it serves become more sustainable.
In addition to the Companies’ material contingencies described in Notes B, G and H to the Second Quarter Financial Statements, the Companies’ management considers the following events, trends, and uncertainties to be important to understanding the Companies’ current and future financial condition.
Clean Energy Goals
The success of the Companies’ efforts to meet federal, state and city clean energy policy goals and the impact of energy consumers' efforts to meet such goals on CECONY’s electric, gas and steam businesses and O&R’s electric
48
and gas businesses may impact the Companies’ future financial condition. The Utilities expect electric usage to increase and gas and
steam usage to decrease in their servi
ce territories as federal, state and local laws and policies are enacted and implemented that aim to reduce the carbon intensity of the energy that is consumed in their respective jurisdictions. The Utilities’ and their regulators’ efforts to maintain electric reliability in their service territories as electric usage increases may also impact the Companies’ future financial condition. The long-term future of the Utilities’ gas businesses depends upon the role that natural gas or other gaseous fuels will play in facilitating New York State’s and New York City’s climate goals. In addition, the impact and costs of climate change on the Utilities’ systems and the success of the Utilities’ efforts to maintain system reliability and manage service interruptions resulting from severe weather may impact the Companies’ future financial condition, results of operations and liquidity.
Aged Accounts Receivable Balances
At June 30, 2024, CECONY’s and O&R’s customer accounts receivables balances of $2,742 million and $117 million, respectively, included aged accounts receivables (balances outstanding in excess of 60 days) of $1,553 million and $37 million, respectively. In comparison, CECONY’s and O&R’s customer accounts receivable balances at February 28, 2020 were $1,322 million and $89 million, respectively, including aged accounts receivables (balances outstanding in excess of 60 days) of $408 million and $15 million, respectively. Prior
to the start of the COVID-19 pandemic, the Utilities’ practice was to write off customer accounts receivables as uncollectible 90 days after the account is disconnected for non-payment or the account is closed during the collection process. In general, the Utilities suspended service disconnections during the COVID-19 pandemic. CECONY’s rate plans include reconciliation of late payment charges (from January 1, 2023 through December 31, 2025 for electric and gas and from January 1, 2020 through October 31, 2026 for steam) and write-offs of customer accounts receivable balances (from January 1, 2020 through December 31, 2025 for electric and gas and from January 1, 2020 through October 31, 2026 for steam) to amounts reflected in rates, with recovery/refund from or to customers via surcharge/sur-credit. CECONY's surcharge recoveries for late payment charges and write-offs of accounts receivable balances will, collectively, be subject to separate annual caps for electric and gas that produce no more than a half percent (0.5 percent) total customer bill impact per commodity (estimated for electric to be $57.3 million, $60.3 million, $62.6 million for 2023, 2024 and 2025, respectively, and for gas to be $14.8 million, $15.9 million and $16.8 million for 2023, 2024 and 2025, respectively). CECONY's surcharge recoveries for late payment charges and write-offs of accounts receivables for steam will each be subject to an annual cap that produces no more than half percent (0.5 percent) total customer bill impact (estimated to be $2.5 million, $3.0 million and $3.5 million for 2024, 2025 and 2026, respectively). Amounts in excess of the surcharge caps will be deferred as a regulatory asset for recovery in CECONY’s next base rate cases. O&R’s 2022 - 2024 rate plans include reconciliation of late payment charges to amounts reflected in rates for years 2022 through 2024, with full recovery/refund via surcharge/sur-credit once the annual variance equals or exceeds 5 basis points of return on equity and reconciliation of write-offs of customer accounts receivable balances to amounts reflected in rates from January 1, 2020 through December 31, 2024, with full recovery/refund via surcharge/sur-credit once the annual variance equals or exceeds 5 basis points of return on equity. Although these regulatory mechanisms are in place, a continued slower recovery in cash of outstanding customer accounts receivable balances has impacted the Companies’ liquidity and may continue to impact liquidity.
The Utilities have resumed collection activities, including write-offs of uncollectible customer accounts receivable balances. Se
e “Liquidity and Capital Resources” and “Capital Requirements and Resources,” below.
In May 2024, the NYSPSC issued an order implementing amendments to certain provisions of the New York State Public Service Law that require utilities, including CECONY and O&R, to bill most residential and small non-residential customers within three months instead of six months of the end of their service period, to provide 13 months of usage information on all electric, gas and steam bills and to make available two years of historical billing information upon customer request. The NYSPSC also ordered the NYSDPS to further consider regulations that would expand the new billing requirements to large non-residential customers and to prohibit utilities, including CECONY and O&R, from recovering revenue lost due to untimely billing.
Con Edison Transmission
Con Edison Transmission, through its New York Transco partnership and jointly with the New York Power Authority, is developing the Propel NY Energy transmission project that will deliver offshore wind energy from Long Island to New York City, Westchester County and the rest of New York State's high voltage power grid. Con Edison Transmission is also participating in competitive solicitations to develop additional electric projects, including a proposal submitted in April 2024 with another entity to build transmission infrastructure that will carry offshore wind power to New Jersey's electric grid and multiple proposals submitted in June 2024 through its New York Transco partnership to integrate offshore wind into New York City's energy grid. The success of Con Edison Transmission’s efforts in these competitive solicitations and to grow its electric transmission portfolio may impact Con Edison’s future capital requirements.
49
CECONY
Electric
CECONY provides electric service to approximately 3.7 million customers in all of New York City (except a part of Queens) and most of Westchester County, an approximately 660 square mile service area with a population of more than nine million.
Gas
CECONY delivers gas to approximately 1.1 million customers in Manhattan, the Bronx, parts of Queens and most of Westchester County.
In June 2024, CECONY decreased its five-year forecast of average annual growth of the firm peak gas demand in its service area at design conditions from approximately 0.8 percent (for 2024 to 2028) to approximately 0.1 percent (for 2025 to 2029). The decrease is reflective of and aligned with state and local clean energy future policies driving the phase-out of the use of natural gas.
Steam
CECONY operates the largest steam distribution system in the United States by producing and delivering approximately 15,444 MMlb of steam annually to approximately 1,520 customers in parts of Manhattan.
In June 2024, CECONY increased its five-year forecast of the average annual peak steam demand in its service area at design conditions from a 0.5 percent decrease (for 2024 to 2028) to a 0.4 percent decrease (for 2025 to 2029). The increase is reflective of and aligned with local policies driving the phase-out of the use of natural gas along with an anticipated increase in oil-to-steam customer conversions.
Collective Bargaining Agreement
In June 2024, CECONY reached a four-year collective bargaining agreement with its largest union covering approximately 7,300 employees (which is subject to ratification by the employees).
O&R
Electric
O&R and its utility subsidiary, Rockland Electric Company (RECO) (together referred to herein as O&R) provide electric service to approximately 0.3 million customers in southeastern New York and northern New Jersey an approximately 1,300 square mile service area.
Gas
O&R delivers gas to over 0.1 million customers in southeastern New York.
In June 2024, O&R increased its five-year forecast of the average annual firm peak gas demand in its service area at design conditions from a 0.2 percent decrease (for 2024 to 2028) to a 0.1 percent decrease (for 2025 to 2029). This change is reflective of and aligned with state clean energy future policies driving the phase-out of the use of natural gas.
Certain financial data of Con Edison’s businesses are presented below:
50
For the Three Months Ended
June 30, 2024
For the Six Months Ended
June 30, 2024
At June 30, 2024
(Millions of Dollars, except percentages)
Operating
Revenues
Net Income for
Common Stock
Operating
Revenues
Net Income for
Common Stock
Assets
CECONY
$2,996
93
%
$186
92
%
$6,967
93
%
$880
95
%
$63,075
92
%
O&R
224
7
3
1
527
7
40
4
3,810
6
Total Utilities
$3,220
100
%
$189
93
%
$7,494
100
%
$920
99
%
$66,885
98
%
Con Edison Transmission
1
—
13
7
2
—
24
3
441
1
Other (a)
(1)
—
—
—
(1)
—
(22)
(2)
594
1
Total Con Edison
$3,220
100
%
$202
100
%
$7,495
100
%
$922
100
%
$67,920
100
%
(a)
Other includes the parent company, Con Edison’s tax equity investments, the deferred project held for sale and consolidation adjustments. Net income for common stock for the
six
months ended June 30, 2024 includes $(22) million (after-tax) for an adjustment related to the sale of the Clean Energy Businesses. See Note Q and Note R to the Second Quarter Financial Statements.
Inflation Reduction Act
On August 16, 2022, the Inflation Reduction Act of 2022 (the IRA) was signed into law and included a new 15 percent Corporate Alternative Minimum Tax (CAMT). Under the IRA, a corporation is subject to the CAMT if its average annual adjusted financial statement Income for the three taxable year period ending prior to the taxable year exceeds $1,000 million, and applies to tax years beginning after December 31, 2022. Con Edison and CECONY were not subject to the CAMT in 2023 and are subject to the CAMT beginning in 2024. The Companies are continuing to assess the impacts of the IRA on their financial statements and will update estimates based on future guidance to be issued by the Department of the Treasury.
New York Legislation
In April 2021, New York passed a law that increased the corporate franchise tax rate on business income from 6.5 percent to 7.25 percent, retroactive to January 1, 2021, for taxpayers with taxable income greater than $5 million. The law also reinstated the business capital tax at 0.1875 percent, not to exceed a maximum tax liability of $5 million per taxpayer. New York requires a corporate franchise taxpayer to calculate and pay the highest amount of tax under the three alternative methods: a tax on business income; a tax on business capital; or a fixed dollar minimum. The provisions to increase the corporate franchise tax rate and reinstate a capital tax were scheduled to expire after 2023. In May 2023, New York passed a law that extended the increase in the corporate franchise tax rate from 6.5 percent to 7.25 percent for an additional three years, through tax year 2026 and extended the business capital tax through tax year 2026. New York also passed a law establishing a permanent rate of 30 percent for the metropolitan transportation business tax surcharge. As a result of the sale of all of the stock of the Clean Energy Businesses in 2023, Con Edison’s New York State taxable income was higher than $5 million and it was subject to the higher 7.25 percent rate (9.425 percent with the surcharge rate) on its taxable income for tax year 2023, but is not expected to be subject to the higher rate in tax year 2024.
Results of Operations
Net income for common stock and earnings per share for the three and six months ended June 30, 2024 and 2023 were as follows:
For the Three Months Ended June 30,
For the Six Months Ended June 30,
2024
2023
2024
2023
2024
2023
2024
2023
(Millions of Dollars, except per share amounts)
Net Income for Common Stock
Earnings
per Share
Net Income for Common Stock
Earnings
per Share
CECONY
$186
$189
$0.54
$0.55
$880
$793
$2.55
$2.27
O&R
3
8
0.01
0.02
40
39
0.12
0.11
Clean Energy Businesses (a) (d)
—
—
—
—
—
22
—
0.06
Con Edison Transmission
13
4
0.04
0.01
24
6
0.07
0.02
Other (b)
—
25
(0.01)
0.07
(22)
798
(0.07)
2.28
Con Edison (c)
$202
$226
$0.58
$0.65
$922
$1,658
$2.67
$4.74
(a)
Net income for common stock and earnings per share from the Clean Energy Businesses for the
three and six
months ended
June 30, 2023
included $(9) million or $(0.03) a share net after-tax mark-to-market effects. Net income for common stock and earnings per share from the Clean Energy Businesses for the
three and six
months ended
June 30, 2023
also included $2 million or $0.01 a share (after-tax) net of the effects of HLBV accounting for tax equity investments in certain renewable electric projects. Depreciation and amortization expenses on their assets of $31 million or $0.09 a share (after-tax) were not recorded for the
three and six
months ended
June 30, 2023
.
51
(b) Other includes the parent company, Con Edison’s tax equity investments, the deferred project held for sale and consolidation adjustments. Net income for common stock and earnings per share for the six months ended June 30, 2024 includes $(22) million (after-tax) or $(0.06) a share (after-tax) for an adjustment related to the sale of all of the stock of the Clean Energy Businesses. See Note Q and Note R to the Second Quarter Financial Statements.
Net income for common stock and earnings per share for the six months ended June 30, 2023 included an immaterial amount or $0.00 a share net of income tax impact on the net after-tax mark-to-market effects. Net income for common stock and earnings per share for the three and six months ended June 30, 2023 also included $(3) million or $(0.01) a share net of income tax impact on the effects of HLBV accounting for tax equity investments in certain renewable electric projects. Net income for common stock for the three and six months ended June 30, 2023 also included $(1) million or $0.00 a share and $(8) million and $(0.02) a share of transaction costs and other accruals, respectively, related to the sale of all of the stock of the Clean Energy Businesses (net of tax). Impact of the sale of the Clean Energy Businesses on the changes in state unitary tax apportionments (net of federal taxes) is $6 million or $0.02 per share and $(10) million or $(0.03) per share for the three and six months ended June 30, 2023, respectively. Depreciation and amortization expenses on the assets of the Clean Energy Businesses of $(3) million or $(0.01) a share (after-tax) were not recorded for the six months ended June 30, 2023. Net income for common stock and earnings per share for the six months ended June 30, 2023 included $13 million or $0.03 a share and $804 million (after-tax) or $2.30 a share (after-tax) for the gain on the sale of all of the stock of the Clean Energy Businesses
. See Note Q and Note R to the
Second
Quarter Financial Statements.
(c) Earnings per share on a diluted basis were
$0.58
a share and $0.65 a share for the three months ended June 30, 2024 and 2023, respectively and $2.66
a share and $
4.72 a share for the six months ended June 30, 2024 and 2023, respectively.
(d) On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note Q and Note R to the Second Quarter Financial Statements.
The following tables present the estimated effect of major factors on earnings per share and net income for common stock for the three and six months ended June 30, 2024 as compared with the 2023 period.
52
Variation for the Three Months Ended June 30, 2024 vs. 2023
Net Income for Common Stock (Net of Tax) (Millions of Dollars)
Earnings per Share
CECONY (a)
Higher electric rate base
$17
$0.05
New steam rate plan effective November 2023
12
0.03
Higher gas rate base
4
0.01
Change in incentives earned under the electric and gas earnings adjustment mechanisms
3
0.01
Impact of the NYSPSC order denying an April 2023 petition by CECONY that requested permission to capitalize costs to implement its new customer billing and information system
(37)
(0.11)
Higher health care costs
(7)
(0.02)
Other
5
0.02
Total CECONY
(3)
(0.01)
O&R (a)
Gas base rate increase
1
—
Higher storm-related costs
(4)
(0.01)
Other
(2)
—
Total O&R
(5)
(0.01)
Con Edison Transmission
Higher investment income and an income tax adjustment due to allowance for funds used during construction (AFUDC) from Mountain Valley Pipeline, LLC
7
0.02
Other
2
0.01
Total Con Edison Transmission
9
0.03
Other, including parent company expenses
HLBV effects
1
—
Gain and other impacts related to the sale of the Clean Energy Businesses
(18)
(0.05)
Lower interest income
(6)
(0.02)
Other
(2)
(0.01)
Total Other, including parent company expenses
(25)
(0.08)
Total Reported (GAAP basis)
$(24)
$(0.07)
a.
Under the revenue decoupling mechanisms in the Utilities’ New York electric and gas rate plans and the weather-normalization clause applicable to their gas businesses, revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved. Effective November 1, 2023, revenues from CECONY’s steam sales are also subject to a weather normalization clause, as a result of which, delivery revenues reflect normal weather conditions during the heating season. In general, the Utilities recover on a current basis the fuel, gas purchased for resale and purchased power costs they incur in supplying energy to their full-service customers. Accordingly, such costs do not generally affect Con Edison’s results of operations.
53
Variation for the Six Months Ended June 30, 2024 vs. 2023
Net Income for Common Stock (Net of Tax) (Millions of Dollars)
Earnings per Share
CECONY (a)
New steam rate plan effective November 2023
$59
$0.16
Higher electric rate base
32
0.09
Higher gas rate base
29
0.08
Change in incentives earned under the electric and gas earnings adjustment mechanisms
4
0.01
Impact of the NYSPSC order denying an April 2023 petition by CECONY that requested permission to capitalize costs to implement its new customer billing and information system
(37)
(0.11)
Accretive effect of share repurchase
—
0.04
Other
0
0.01
Total CECONY
87
0.28
O&R (a)
Electric base rate increase
7
0.02
Gas base rate increase
2
0.01
Other
(8)
(0.02)
Total O&R
1
0.01
Clean Energy Businesses (b)
Total Clean Energy Businesses
(22)
(0.06)
Con Edison Transmission
Higher investment income and an income tax adjustment due to AFUDC from Mountain Valley Pipeline, LLC
15
0.04
Other
3
0.01
Total Con Edison Transmission
18
0.05
Other, including parent company expenses
HLBV effects
3
0.01
Gain and other impacts related to the sale of the Clean Energy Businesses
(805)
(2.31)
Lower interest income
(14)
(0.04)
Other
(4)
(0.01)
Total Other, including parent company expenses
(820)
(2.35)
Total Reported (GAAP basis)
$(736)
$(2.07)
a.
Under the revenue decoupling mechanisms in the Utilities’ New York electric and gas rate plans and the weather-normalization clause applicable to their gas businesses, revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved. In general, the Utilities recover on a current basis the fuel, gas purchased for resale and purchased power costs they incur in supplying energy to their full-service customers. Accordingly, such costs do not generally affect Con Edison’s results of operations.
b. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses.
54
The Companies’ other operations and maintenance expenses for the three and six months ended June 30, 2024 and 2023 were as follows:
For the Three Months Ended June 30,
For the Six Months Ended June 30,
(Millions of Dollars)
2024
2023
2024
2023
CECONY
Operations
$497
$447
$985
$870
Pensions and other postretirement benefits
31
87
70
173
Health care and other benefits
47
35
88
72
Regulatory fees and assessments (a)
107
83
214
172
Other (b)
189
105
302
220
Total CECONY
$871
$757
$1,659
$1,507
O&R
94
90
191
187
Clean Energy Businesses (c)
—
—
—
47
Con Edison Transmission
3
3
6
6
Other (d)
(1)
(1)
—
(3)
Total other operations and maintenance expenses
$967
$849
$1,856
$1,744
(a)
Includes Demand Side Management, System Benefit Charges and Public Service Law 18A assessments that are collected in revenues.
(b)
Other includes the impact of the NYSPSC order denying an April 2023 petition by CECONY that requested permission to capitalize costs to implement its new customer billing and information system in 2024 ($51 million).
(c)
On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note Q and Note R to the Second Quarter Financial Statements.
(d)
Other includes the parent company, Con Edison’s tax equity investments, the deferred project held for sale and consolidation adjustments. See Note R
to the Second Quarter Financial Statements.
A discussion of the results of operations by principal business segment for the three and six months ended June 30, 2024 and 2023 follows. For additional business segment financial information, see Note M to the Second Quarter Financial Statements.
55
The Companies’ results of operations for the three months ended June 30, 2024 and 2023 were as follows:
CECONY
O&R
Con Edison
Transmission
Other (a)
Con Edison (b)
(Millions of Dollars)
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
Operating revenues
$2,996
$2,744
$224
$200
$1
$1
$(1)
$(1)
$3,220
$2,944
Purchased power
498
452
58
43
—
—
—
—
556
495
Fuel
15
18
—
—
—
—
—
—
15
18
Gas purchased for resale
57
91
11
8
—
—
—
—
68
99
Other operations and maintenance
871
757
94
90
3
3
(1)
(1)
967
849
Depreciation and amortization
482
470
29
26
—
—
1
—
512
496
Taxes, other than income taxes
759
694
23
22
—
—
—
—
782
716
Gain (loss) on sale of the Clean Energy Businesses
—
—
—
—
—
—
—
13
—
13
Operating income (loss)
314
262
9
11
(2)
(2)
(1)
13
320
284
Other income (deductions)
142
184
8
12
11
8
(1)
3
160
207
Net interest expense
269
223
14
13
—
—
5
—
288
236
Income (loss) before income tax expense
187
223
3
10
9
6
(7)
16
192
255
Income tax expense
1
34
—
2
(4)
2
(7)
(9)
(10)
29
Net income (loss)
$186
$189
$3
$8
$13
$4
$—
$25
$202
$226
Net income (loss) for common stock
$186
$189
$3
$8
$13
$4
$—
$25
$202
$226
(a)
Other includes the parent company, Con Edison’s tax equity investments, the deferred project held for sale and consolidation adjustments. See Note R
to the Second Quarter Financial Statements
.
(b)
Represents the consolidated results of operations of Con Edison and its businesses.
56
CECONY
For the Three Months Ended
June 30, 2024
For the Three Months Ended
June 30, 2023
(Millions of Dollars)
Electric
Gas
Steam
2024 Total
Electric
Gas
Steam
2023 Total
2024-2023 Variation
Operating revenues
$2,370
$538
$88
$2,996
$2,144
$531
$69
$2,744
$252
Purchased power
492
—
6
498
445
—
7
452
46
Fuel
11
—
4
15
18
—
—
18
(3)
Gas purchased for resale
—
57
—
57
—
91
—
91
(34)
Other operations and maintenance
671
147
53
871
569
132
56
757
114
Depreciation and amortization
345
112
25
482
339
106
25
470
12
Taxes, other than income taxes
579
137
43
759
541
119
34
694
65
Operating income
$272
$85
$(43)
$314
$232
$83
$(53)
$262
$52
Electric
CECONY’s results of electric operations for the three months ended June 30, 2024 compared with the 2023 period were as follows:
For the Three Months Ended
(Millions of Dollars)
June 30, 2024
June 30, 2023
Variation
Operating revenues
$2,370
$2,144
$226
Purchased power
492
445
47
Fuel
11
18
(7)
Other operations and maintenance
671
569
102
Depreciation and amortization
345
339
6
Taxes, other than income taxes
579
541
38
Electric operating income
$272
$232
$40
CECONY’s electric sales and deliveries for the three months ended June 30, 2024 compared with the 2023 period were:
Millions of kWh Delivered
Revenues in Millions (a)
For the Three Months Ended
For the Three Months Ended
Description
June 30, 2024
June 30, 2023
Variation
Percent
Variation
June 30, 2024
June 30, 2023
Variation
Percent
Variation
Residential/Religious (b)
2,520
2,280
240
10.5
%
$901
$669
$232
34.7
%
Commercial/Industrial
2,208
2,340
(132)
(5.6)
622
568
54
9.5
Retail choice customers
4,851
4,644
207
4.5
587
501
86
17.2
NYPA, Municipal Agency and other sales
2,261
2,126
135
6.3
206
166
40
24.1
Other operating revenues (c)
—
—
—
—
54
240
(186)
(77.5)
Total
11,840
11,390
450
4.0
%
(d)
$2,370
$2,144
$226
10.5
%
(a)
Revenues from electric sales are subject to a revenue decoupling mechanism, as a result of which delivery revenues generally are not affected by changes in delivery volumes from levels assumed when rates were approved.
(b)
“Residential/Religious” generally includes single-family dwellings, individual apartments in multi-family dwellings, religious organizations and certain other not-for-profit organizations.
(c)
Other electric operating revenues generally reflect changes in the revenue decoupling mechanism current asset or regulatory liability and changes in regulatory assets and liabilities in accordance with other provisions of CECONY's rate plan.
(d)
After adjusting for variations, primarily weather and billing days, electric delivery volumes in CECONY’s service area decreased 1.0 percent in the three months ended June 30, 2024 compared with the 2023 period.
Operating revenues
increased $226 million in the three months ended June 30, 2024 compared with the 2023 period primarily due to an increase in revenues from the electric rate plan ($132 million), an increase in purchased power expenses ($47 million) and a change in incentives earned under the earnings adjustment mechanisms ($10 million).
57
Purchased power
expenses increased $47 million in the three months ended June 30, 2024 compared with the 2023 period due to higher purchased volumes ($72 million), offset in part by lower unit costs ($25 million).
Fuel
expenses decreased $7 million in the three months ended June 30, 2024 compared with the 2023 period due to lower unit costs ($4 million) and lower purchased volumes from the company's electric generating facilities ($3 million).
Other operations and maintenance
expenses increased $102 million in the three months ended June 30, 2024 compared with the 2023 period primarily due to the impact of the NYSPSC order denying an April 2023 petition by CECONY that requested permission to capitalize costs to implement its new customer billing and information system in 2024 ($37 million), increases in total surcharges for assessments and fees that are collected in revenues from customers ($21 million), higher electric operations maintenance activities ($11 million) and higher health care costs ($7 million).
Depreciation and amortization
expenses increased $6 million in the three months ended June 30, 2024 compared with the 2023 period primarily due to higher electric utility plant balances.
Taxes, other than income taxes
increased $38 million in the three months ended June 30, 2024 compared with the 2023 period due to higher property taxes ($31 million) and higher state and local revenue taxes ($13 million), offset in part by lower deferral of over-collected property taxes ($6 million).
Gas
CECONY’s results of gas operations for the three months ended June 30, 2024 compared with the 2023 period were as follows:
For the Three Months Ended
(Millions of Dollars)
June 30, 2024
June 30, 2023
Variation
Operating revenues
$538
$531
$7
Gas purchased for resale
57
91
(34)
Other operations and maintenance
147
132
15
Depreciation and amortization
112
106
6
Taxes, other than income taxes
137
119
18
Gas operating income
$85
$83
$2
CECONY’s gas sales and deliveries, excluding off-system sales, for the three months ended June 30, 2024 compared with the 2023 period were:
Thousands of Dt Delivered
Revenues in Millions (a)
For the Three Months Ended
For the Three Months Ended
Description
June 30, 2024
June 30, 2023
Variation
Percent
Variation
June 30, 2024
June 30, 2023
Variation
Percent
Variation
Residential
9,394
8,508
886
10.4
%
$243
$235
$8
3.4
%
General
7,137
6,136
1,001
16.3
142
98
44
44.9
Firm transportation
15,886
14,198
1,688
11.9
198
155
43
27.7
Total firm sales and transportation
32,417
28,842
3,575
12.4
%
(b)
$583
$488
$95
19.5
%
Interruptible sales (c)
802
1,581
(779)
(49.3)
7
8
(1)
(12.5)
NYPA
15,413
14,119
1,294
9.2
1
1
—
—
Generation plants
13,965
11,453
2,512
21.9
5
6
(1)
(16.7)
Other
4,615
4,571
44
1.0
10
9
1
11.1
Other operating revenues (d)
—
—
—
—
(68)
19
(87)
Large
Total
67,212
60,566
6,646
11.0
%
$538
$531
$7
1.3
%
(a)
Revenues from gas sales are subject to a weather normalization clause and a revenue decoupling mechanism as a result of which delivery revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved.
(b)
After adjusting for variations, primarily billing days, firm gas sales and transportation volumes in CECONY’s service area increased 12.1 percent in the three months ended June 30, 2024 compared with the 2023 period.
(c)
Includes 94 thousand and 91 thousand of Dt for the 2024 and 2023 periods, respectively, that are also reflected in firm transportation and other.
(d)
Other gas operating revenues generally reflect changes in the revenue decoupling mechanism and weather normalization clause current asset or regulatory liability and changes in regulatory assets and liabilities in accordance with other provisions of CECONY’s rate plan.
58
Operating revenues
increased $7 million in the three months ended June 30, 2024 compared with the 2023 period primarily due to an increase in gas revenues under the company's gas rate plan ($52 million), offset in part by lower gas purchased for resale ($34 million), a change in incentives earned under the earnings adjustment mechanisms ($5 million) and higher interest accrual on net plant reconciliation ($3 million).
Gas purchased for resale
decreased $34 million in the three months ended June 30, 2024 compared with the 2023 period due to lower unit costs ($45 million), offset in part by higher purchased volumes ($11 million).
Other operations and maintenance
expenses increased $15 million in the three months ended June 30, 2024 compared with the 2023 period primarily due to the impact of the NYSPSC order denying an April 2023 petition by CECONY that requested permission to capitalize costs to implement its new customer billing and information system in 2024 ($8 million) and higher gas operations costs ($7 million).
Depreciation and amortization
expenses increased $6 million in the three months ended June 30, 2024 compared with the 2023 period primarily due to higher gas utility plant balances.
Taxes, other than income taxes
increased $18 million in the three months ended June 30, 2024 compared with the 2023 period primarily due to higher property taxes ($14 million), higher deferral of under-collected property taxes ($2 million) and higher state and local revenue taxes ($2 million).
Steam
CECONY’s results of steam operations for the three months ended June 30, 2024 compared with the 2023 period were as follows:
For the Three Months Ended
(Millions of Dollars)
June 30, 2024
June 30, 2023
Variation
Operating revenues
$88
$69
$19
Purchased power
6
7
(1)
Fuel
4
—
4
Other operations and maintenance
53
56
(3)
Depreciation and amortization
25
25
—
Taxes, other than income taxes
43
34
9
Steam operating income
$(43)
$(53)
$10
CECONY’s steam sales and deliveries for the three months ended June 30, 2024 compared with the 2023 period were:
Millions of Pounds Delivered
Revenues in Millions
For the Three Months Ended
For the Three Months Ended
Description
June 30, 2024
June 30, 2023
Variation
Percent
Variation
June 30, 2024
June 30, 2023
Variation
Percent
Variation
General
64
47
17
36.2
%
$5
$3
$2
66.7
%
Apartment house
915
828
87
10.5
28
22
6
27.3
Annual power
1,851
1,769
82
4.6
61
50
11
22.0
Other operating revenues (a)
—
—
—
—
(6)
(6)
—
—
Total
2,830
2,644
186
7.0
%
(b)
$88
$69
$19
27.5
%
(a)
Other steam operating revenues generally reflect changes in regulatory assets and liabilities in accordance with CECONY’s rate plan.
(b)
After adjusting for variations, primarily weather prior to November 1, 2023, and billing days, steam sales and deliveries in the company's service area decreased 4.7 percent in the three months ended June 30, 2024 compared with the 2023 period.
Operating revenues
increased $19 million in the three months ended June 30, 2024 compared with the 2023 period primarily due to the benefit from the new steam rate plan ($16 million) and higher fuel expense ($4 million), offset in part by lower purchased power ($1 million).
Fuel expenses
increased $4 million in the three months ended June 30, 2024 compared with the 2023 period due to higher unit costs ($4 million).
59
Other operations and maintenance
expenses decreased $3 million in the three months ended June 30, 2024 compared with the 2023 period primarily due to lower costs for pension and other postretirement benefits, reflecting reconciliation to the rate plan level ($15 million), offset in part by the impact of the NYSPSC order denying an April 2023 petition by CECONY that requested permission to capitalize costs to implement its new customer billing and information system in 2024 ($6 million), an increase in municipal infrastructure support ($3 million), higher steam operations maintenance activities ($1 million) and an increase in health care costs ($1 million).
Taxes, other than income taxes
increased $9 million in the three months ended June 30, 2024 compared with the 2023 period primarily due to a higher deferral of under-collected property taxes ($7 million).
Taxes, Other Than Income Taxes
At
$759 million
, taxes other than income taxes remain one of CECONY’s largest operating expenses for
the three months ended June 30, 2024
. The principal components of, and variations in, taxes other than income taxes were:
For the Three Months Ended
June 30,
(Millions of Dollars)
2024
2023
Variation
Property taxes
$650
$604
$46
State and local taxes related to revenue receipts
94
78
16
Payroll taxes
19
19
—
Other taxes
(4)
(7)
3
Total
$759
(a)
$694
(a)
$65
(a)
Including sales tax on customers’ bills, total taxes other than income taxes in 2024 and 2023 w
ere $928 million and $854 million,
respectively.
Other Income (Deductions)
Other income decreased $42 million in the three months ended June 30, 2024 compared with the 2023 period primarily due to lower credits associated with components of pension and other postretirement benefits other than service cost ($48 million), offset in part by an increase in AFUDC ($3 million) and an increase in the revenue decoupling mechanism interest accrual ($3 million).
Net Interest Expense
Net interest expense increased $46 million in the three months ended June 30, 2024 compared with the 2023 period primarily due to higher interest on long-term debt ($33 million) and short-term debt ($7 million) and an increase in the carrying charges and interest on regulatory liability balances ($4 million).
Income Tax Expense
Income taxes decreased $33 million in the three months ended June 30, 2024 compared with the 2023 period primarily due to the absence in 2024 of a remeasurement of state deferred income tax assets and liabilities as a result of the New York State legislation enacted in 2023 ($10 million), higher amortization of excess deferred federal income taxes ($9 million), lower income before income tax expense ($8 million) and lower state income taxes ($5 million).
O&R
For the Three Months Ended
June 30, 2024
For the Three Months Ended
June 30, 2023
(Millions of Dollars)
Electric
Gas
2024 Total
Electric
Gas
2023 Total
2024-2023 Variation
Operating revenues
$180
$44
$224
$159
$41
$200
$24
Purchased power
58
—
58
43
—
43
15
Gas purchased for resale
—
11
11
—
8
8
3
Other operations and maintenance
75
19
94
71
19
90
4
Depreciation and amortization
20
9
29
18
8
26
3
Taxes, other than income taxes
15
8
23
14
8
22
1
Operating income (loss)
$12
$(3)
$9
$13
$(2)
$11
$(2)
Electric
60
O&R’s results of electric operations for the three months ended June 30, 2024 compared with the 2023 period were as follows:
For the Three Months Ended
(Millions of Dollars)
June 30, 2024
June 30, 2023
Variation
Operating revenues
$180
$159
$21
Purchased power
58
43
15
Other operations and maintenance
75
71
4
Depreciation and amortization
20
18
2
Taxes, other than income taxes
15
14
1
Electric operating income
$12
$13
$(1)
O&R’s electric sales and deliveries for the three months ended June 30, 2024 compared with the 2023 period were:
Millions of kWh Delivered
Revenues in Millions (a)
For the Three Months Ended
For the Three Months Ended
Description
June 30, 2024
June 30, 2023
Variation
Percent
Variation
June 30, 2024
June 30, 2023
Variation
Percent
Variation
Residential/Religious (b)
477
416
61
14.7
%
$96
$82
$14
17.1
%
Commercial/Industrial
223
231
(8)
(3.5)
34
30
4
13.3
Retail choice customers
635
563
72
12.8
47
40
7
17.5
Public authorities
28
26
2
7.7
2
3
(1)
(33.3)
Other operating revenues (c)
—
—
—
—
1
4
(3)
(75.0)
Total
1,363
1,236
127
10.3
%
(d)
$180
$159
$21
13.2
%
(a)
O&R’s New York electric delivery revenues are subject to a revenue decoupling mechanism, as a result of which delivery revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved. The majority of O&R’s electric distribution revenues in New Jersey are subject to a conservation incentive program, as a result of which distribution revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved. O&R’s electric transmission revenues in New Jersey are not subject to a conservation incentive program, and as a result, changes in such volumes do impact revenues.
(b)
“Residential/Religious” generally includes single-family dwellings, individual apartments in multi-family dwellings, religious organizations and certain other not-for-profit organizations.
(c)
Other electric operating revenues generally reflect changes in regulatory assets and liabilities in accordance with O&R’s electric rate plan.
(d)
After adjusting for weather and other variations, electric delivery volumes in O&R’s service area decreased 6.2 percent in the three months ended June 30, 2024 compared with the 2023 period.
Operating revenues
increased $21 million in the three months ended June 30, 2024 compared with the 2023 period primarily due to higher purchased power expenses ($15 million).
Purchased power expense
increased $15 million in the three months ended June 30, 2024 compared with the 2023 period primarily due to higher purchased volumes ($9 million) and higher unit costs ($6 million).
Other operations and maintenance
expenses increased $4 million in the three months ended June 30, 2024 compared with the 2023 period primarily due to higher non-deferred storm costs.
Gas
O&R’s results of gas operations for the three months ended June 30, 2024 compared with the 2023 period were as follows:
For the Three Months Ended
(Millions of Dollars)
June 30, 2024
June 30, 2023
Variation
Operating revenues
$44
$41
$3
Gas purchased for resale
11
8
3
Other operations and maintenance
19
19
—
Depreciation and amortization
9
8
1
Taxes, other than income taxes
8
8
—
Gas operating income
$(3)
$(2)
($1)
61
O&R’s gas sales and deliveries, excluding off-system sales, for the three months ended June 30, 2024 compared with the 2023 period were:
Thousands of Dt Delivered
Revenues in Millions (a)
For the Three Months Ended
For the Three Months Ended
Description
June 30, 2024
June 30, 2023
Variation
Percent
Variation
June 30, 2024
June 30, 2023
Variation
Percent
Variation
Residential
1,783
1,524
259
17.0
%
$32
$24
$8
33.3
%
General
468
314
154
49.0
5
3
2
66.7
Firm transportation
957
1,028
(71)
(6.9)
7
8
(1)
(12.5)
Total firm sales and transportation
3,208
2,866
342
11.9
%
(b)
$44
$35
$9
25.7
%
Interruptible sales
556
803
(247)
(30.8)
2
1
1
Large
Generation plants
—
—
—
—
—
—
—
—
Other
12
11
1
9.1
—
1
(1)
Large
Other gas revenues
—
—
—
—
(2)
4
(6)
Large
Total
3,776
3,680
96
2.6
%
$44
$41
$3
7.3
%
(a)
Revenues from New York gas sales are subject to a weather normalization clause and a revenue decoupling mechanism as a result of which delivery revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved.
(b)
After adjusting for weather and other variations, firm sales and transportation volumes in O&R's service area decreased 0.2 percent in the three months ended June 30, 2024 compared with the 2023 period.
Operating revenues
increased $3 million in the three months ended June 30, 2024 compared with the 2023 period primarily due to higher gas purchased for resale ($3 million).
Gas purchased for resale
increased $3 million in the three months ended June 30, 2024 compared with the 2023 period due to higher unit costs ($3 million).
Taxes, Other Than Income Taxes
Taxes, other than income taxes, remained consistent in 2024 compared with 2023 for the three months ended June 30, 2024. The principal components of taxes, other than income taxes, were:
For the Three Months Ended
June 30,
(Millions of Dollars)
2024
2023
Variation
Property taxes
$18
$18
$—
State and local taxes related to revenue receipts
3
2
1
Payroll taxes
2
2
—
Total
$23
(a)
$22
(a)
$1
(a)
Including sales tax on customers’ bills, total taxes other than income taxes in 2024 and 2023 were $29 million and $28 million, respectively.
Other Income (Deductions)
Other income decreased $4 million in the three months ended June 30, 2024 compared with the 2023 period primarily due to lower credits associated with components of pension and other postretirement benefits other than service cost ($5 million).
Con Edison Transmission
Other Income (Deductions)
Other income increased $3 million in the three months ended June 30, 2024 compared with the 2023 period primarily due to higher investment income from MVP ($3 million).
Income Tax Expense
Income taxes decreased $6 million in the three months ended June 30, 2024 compared with the 2023 period primarily due to flow through tax benefits in 2024 for plant related items ($5 million) and lower state income taxes ($2 million), offset in part by higher income before income tax expense ($1 million).
62
The Companies’ results of operations for the six months ended June 30, 2024 and 2023 were as follows:
CECONY
O&R
Clean Energy Businesses (a)
Con Edison
Transmission
Other (a)
Con Edison (b)
(Millions of Dollars)
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
Operating revenues
$6,967
$6,697
$527
$521
$—
$129
$2
$2
$(1)
$(2)
$7,495
$7,347
Purchased power
1,076
1,083
123
114
—
—
—
—
—
1
1,199
1,198
Fuel
103
207
—
—
—
—
—
—
—
—
103
207
Gas purchased for resale
292
456
43
71
—
41
—
—
—
(1)
335
567
Other operations and maintenance
1,659
1,507
191
187
—
47
6
6
—
(3)
1,856
1,744
Depreciation and amortization
993
943
58
51
—
—
1
—
(1)
—
1,051
994
Taxes, other than income taxes
1,540
1,430
48
46
—
4
—
—
2
2
1,590
1,482
Gain (Loss) on sale of the Clean Energy Businesses
—
—
—
—
—
—
—
—
(30)
867
(30)
867
Operating income
1,304
1,071
64
52
—
37
(5)
(4)
(32)
866
1,331
2,022
Other income (deductions)
298
367
16
24
—
1
30
15
(2)
(3)
342
404
Net interest expense
540
456
27
25
—
16
—
2
10
—
577
499
Income before income tax expense
1,062
982
53
51
—
22
25
9
(44)
863
1,096
1,927
Income tax expense
182
189
13
12
—
3
1
3
(22)
65
174
272
Net income
$880
$793
$40
$39
$—
$19
$24
$6
($22)
$798
$922
$1,655
Loss attributable to non-controlling interest
—
—
—
—
—
(3)
—
—
—
—
—
(3)
Net income for common stock
$880
$793
$40
$39
$—
$22
$24
$6
($22)
$798
$922
$1,658
(a)
On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note Q and Note R to the Second Quarter Financial Statements.
(b)
Other includes the parent company, Con Edison’s tax equity investments, the deferred project held for sale and consolidation adjustments. See Note R
to the Second Quarter Financial Statements
.
(c)
Represents the consolidated results of operations of Con Edison and its businesses.
63
CECONY
For the Six Months Ended
June 30, 2024
For the Six Months Ended
June 30, 2023
(Millions of Dollars)
Electric
Gas
Steam
2024 Total
Electric
Gas
Steam
2023 Total
2024-2023 Variation
Operating revenues
$4,812
$1,781
$374
$6,967
$4,500
$1,822
$375
$6,697
$270
Purchased power
1,060
—
16
1,076
1,058
—
25
1,083
(7)
Fuel
69
—
34
103
97
—
110
207
(104)
Gas purchased for resale
—
292
—
292
—
456
—
456
(164)
Other operations and maintenance
1,284
274
101
1,659
1,138
257
112
1,507
152
Depreciation and amortization
715
226
52
993
683
211
49
943
50
Taxes, other than income taxes
1,172
288
80
1,540
1,100
256
74
1,430
110
Operating income
$512
$701
$91
$1,304
$424
$642
$5
$1,071
$233
Electric
CECONY’s results of electric operations for the six months ended June 30, 2024 compared with the 2023 period were as follows:
For the Six Months Ended
(Millions of Dollars)
June 30, 2024
June 30, 2023
Variation
Operating revenues
$4,812
$4,500
$312
Purchased power
1,060
1,058
2
Fuel
69
97
(28)
Other operations and maintenance
1,284
1,138
146
Depreciation and amortization
715
683
32
Taxes, other than income taxes
1,172
1,100
72
Electric operating income
$512
$424
$88
CECONY’s electric sales and deliveries for the six months ended June 30, 2024 compared with the 2023 period were:
Millions of kWh Delivered
Revenues in Millions (a)
For the Six Months Ended
For the Six Months Ended
Description
June 30, 2024
June 30, 2023
Variation
Percent
Variation
June 30, 2024
June 30, 2023
Variation
Percent
Variation
Residential/Religious (b)
5,111
4,894
217
4.4
%
$1,866
$1,381
$485
35.1
%
Commercial/Industrial
4,880
5,127
(247)
(4.8)
1,360
1,244
116
9.3
Retail choice customers
9,620
9,449
171
1.8
1,129
964
165
17.1
NYPA, Municipal Agency and other sales
4,562
4,456
106
2.4
383
325
58
17.8
Other operating revenues (c)
—
—
—
—
74
586
(512)
(87.4)
Total
24,173
23,926
247
1.0
%
(d)
$4,812
$4,500
$312
6.9
%
(a)
Revenues from electric sales are subject to a revenue decoupling mechanism, as a result of which delivery revenues generally are not affected by changes in delivery volumes from levels assumed when rates were approved.
(b)
“Residential/Religious” generally includes single-family dwellings, individual apartments in multi-family dwellings, religious organizations and certain other not-for-profit organizations.
(c)
Other electric operating revenues generally reflect changes in the revenue decoupling mechanism current asset or regulatory liability and changes in regulatory assets and liabilities in accordance with other provisions of CECONY’s rate plan.
(d)
After adjusting for variations, primarily weather and billing days, electric delivery volumes in CECONY’s service area decreased 1.3 percent in the six months ended June 30, 2024 compared with the 2023 period.
Operating revenues
increased $312 million in the six months ended June 30, 2024 compared with the 2023 period primarily due to an increase in revenues from the electric rate plan ($274 million), a change in incentives earned under the earnings adjustment mechanisms ($10 million) and higher purchased power expenses ($2 million).
64
Fuel
expenses decreased $28 million in the six months ended June 30, 2024 compared with the 2023 period due to lower unit costs ($20 million) and lower purchased volumes from CECONY's electric generating facilities ($8 million).
Other operations and maintenance
expenses increased $146 million in the six months ended June 30, 2024 compared with the 2023 period primarily due to the impact of the NYSPSC order denying an April 2023 petition by CECONY that requested permission to capitalize costs to implement its new customer billing and information system in 2024 ($37 million), higher total surcharges for assessments and fees that are collected in revenues from customers ($35 million), higher electric operations maintenance activities ($21 million), an increase in municipal infrastructure support ($10 million), higher health care costs ($4 million), an increase in the costs for injuries and damages ($4 million) and higher uncollectible expenses ($3 million).
Depreciation and amortization
expenses increased $32 million in the six months ended June 30, 2024 compared with the 2023 period primarily due to higher electric utility plant balances.
Taxes, other than in
come
taxes
increased $72 million in the six months ended June 30, 2024 compared with the 2023 period primarily due to higher property taxes ($62 million) and higher state and local revenue taxes ($21 million) offset in part by a lower deferral of over-collected property taxes ($11 million).
Gas
CECONY’s results of gas operations for the six months ended June 30, 2024 compared with the 2023 period were as follows:
For the Six Months Ended
(Millions of Dollars)
June 30, 2024
June 30, 2023
Variation
Operating revenues
$1,781
$1,822
$(41)
Gas purchased for resale
292
456
(164)
Other operations and maintenance
274
257
17
Depreciation and amortization
226
211
15
Taxes, other than income taxes
288
256
32
Gas operating income
$701
$642
$59
CECONY’s gas sales and deliveries, excluding off-system sales, for the six months ended June 30, 2024 compared with the 2023 period were:
Thousands of Dt Delivered
Revenues in Millions (a)
For the Six Months Ended
For the Six Months Ended
Description
June 30, 2024
June 30, 2023
Variation
Percent
Variation
June 30, 2024
June 30, 2023
Variation
Percent
Variation
Residential
30,470
31,016
(546)
(1.8)
%
$745
$793
$(48)
(6.1)
%
General
19,233
18,662
571
3.1
416
353
63
17.8
Firm transportation
45,384
45,855
(471)
(1.0)
603
558
45
8.1
Total firm sales and transportation
95,087
95,533
(446)
(0.5)
(b)
1,764
1,704
60
3.5
Interruptible sales (c)
1,987
3,443
(1,456)
(42.3)
19
29
(10)
(34.5)
NYPA
28,403
24,092
4,311
17.9
1
1
—
—
Generation plants
26,914
23,234
3,680
15.8
10
14
(4)
(28.6)
Other
10,906
10,744
162
1.5
25
21
4
19.0
Other operating revenues (d)
—
—
—
—
(38)
53
(91)
Large
Total
163,297
157,046
6,251
4.0
%
$1,781
$1,822
$(41)
(2.3)
%
(a)
Revenues from gas sales are subject to a weather normalization clause and a revenue decoupling mechanism as a result of which delivery revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved.
(b)
After adjusting for variations, primarily billing days, firm gas sales and transportation volumes in CECONY’s service area decreased 2.0% percent in the six months ended June 30, 2024 compared with the 2023 period.
(c)
Includes 129 thousand and 745 thousand of Dt for the 2024 and 2023 periods, respectively, that are also reflected in firm transportation and other.
(d)
Other gas operating revenues generally reflect changes in the revenue decoupling mechanism and weather normalization clause current asset or regulatory liability and changes in regulatory assets and liabilities in accordance with other provisions of CECONY’s rate plan.
65
Operating revenues
decreased $41 million in the six months ended June 30, 2024 compared with the 2023 period primarily due to a decrease in gas purchased for resale ($164 million), higher interest accrual on net plant reconciliation ($8 million) and a change in incentives earned under the earnings adjustment mechanisms ($5 million), offset in part by an increase in revenues from the gas rate plan ($140 million).
Gas purchased for resale
decreased $164 million in the six months ended June 30, 2024 compared with the 2023 period due to lower unit costs ($197 million), offset in part by higher purchased volumes ($33 million).
Other operations and maintenance
expenses increased $17 million in the six months ended June 30, 2024 compared with the 2023 period primarily due to higher gas operations cost ($13 million) and the impact of the NYSPSC order denying an April 2023 petition by CECONY that requested permission to capitalize costs to implement its new customer billing and information system in 2024 ($8 million), offset in part by an increase in the total sur-credits for assessments and fees that are collected in revenues from customers ($2 million).
Depreciation and amortization
expenses increased $15 million in the six months ended June 30, 2024 compared with the 2023 period primarily due to higher gas utility plant balances.
Taxes, other than income taxes
increased $32 million in the six months ended June 30, 2024 compared with the 2023 period primarily due to a higher property taxes ($27 million) and higher deferral of under-collected property taxes ($8 million), offset in part by lower state and local taxes ($4 million).
Steam
CECONY’s results of steam operations for the six months ended June 30, 2024 compared with the 2023 period were as follows:
For the Six Months Ended
(Millions of Dollars)
June 30, 2024
June 30, 2023
Variation
Operating revenues
$374
$375
$(1)
Purchased power
16
25
(9)
Fuel
34
110
(76)
Other operations and maintenance
101
112
(11)
Depreciation and amortization
52
49
3
Taxes, other than income taxes
80
74
6
Steam operating income
$91
$5
$86
CECONY’s steam sales and deliveries for the six months ended June 30, 2024 compared with the 2023 period were:
Millions of Pounds Delivered
Revenues in Millions
For the Six Months Ended
For the Six Months Ended
Description
June 30, 2024
June 30, 2023
Variation
Percent
Variation
June 30, 2024
June 30, 2023
Variation
Percent
Variation
General
315
308
7
2.3
%
$22
$17
$5
29.4
%
Apartment house
3,021
2,840
181
6.4
105
102
3
2.9
Annual power
6,143
6,127
16
0.3
263
248
15
6.0
Other operating revenues (a)
—
—
—
—
(16)
8
(24)
Large
Total
9,479
9,275
204
2.2
%
(b)
$374
$375
$(1)
(0.3)
%
(a)
Other steam operating revenues generally reflect changes in regulatory assets and liabilities in accordance with CECONY’s rate plan.
(b)
After adjusting for variations, primarily weather and billing days, steam sales and deliveries decreased 3.2 percent in the six months ended June 30, 2024 compared with the 2023 period.
Operating revenues
decreased $1 million in the six months ended June 30, 2024 compared with the 2023 period primarily due to lower fuel expenses ($76 million) and lower purchased power expenses ($9 million), offset in part by the benefit from the new steam rate plan ($80 million).
Purchased power
expenses decreased $9 million in the six months ended June 30, 2024 compared with the 2023 period due to lower unit costs ($9 million).
66
Fuel
expenses decreased $76 million in the six months ended June 30, 2024 compared with the 2023 period due to lower unit costs ($79 million), offset in part by higher purchased volumes from CECONY’s steam generating facilities ($3 million).
Other operations and maintenance
expenses decreased $11 million in the six months ended June 30, 2024 compared with the 2023 period primarily due to lower costs for pension and other postretirement benefits, reflecting reconciliation to the rate plan level ($30 million), offset in part by the impact of the NYSPSC order denying an April 2023 petition by CECONY that requested permission to capitalize costs to implement its new customer billing and information system in 2024 ($6 million), higher steam operations maintenance activities ($6 million) and an increase in municipal infrastructure support ($4 million).
Depreciation and amortization
expenses increased $3 million in the six months ended June 30, 2024 compared with the 2023 period primarily due to higher gas utility plant balances.
Taxes, other than income taxes
increased $6 million in the six months ended June 30, 2024 compared with the 2023 period primarily due to higher property taxes ($4 million), higher state and local taxes ($1 million) and a higher deferral of under-collected property taxes ($1 million).
Taxes, Other Than Income Taxes
At $1,540 million, taxes other than income taxes remain one of CECONY’s largest operating expenses for
the six months ended June 30, 2024
. The principal components of, and variations in, taxes other than income taxes were:
For the Six Months Ended
June 30,
(Millions of Dollars)
2024
2023
Variation
Property taxes
$1,299
$1,206
$93
State and local taxes related to revenue receipts
214
197
17
Payroll taxes
51
47
4
Other taxes
(24)
(20)
(4)
Total
$1,540
(a)
$1,430
(a)
$110
(a)
Including sales tax on customers’ bills, total taxes other than income taxes in 2024 and 2023
were $1,906 million and $1,756 million, respectively.
Other Income (Deductions)
Other income decreased $69 million in the six months ended June 30, 2024 compared with the 2023 period primarily due to lower costs associated with components of pension and other postretirement benefits other than service cost ($88 million), offset in part by an increase in AFUDC ($7 million) and an increase in the revenue decoupling mechanism interest accrual ($7 million).
Net Interest Expense
Net interest expense increased $84 million in the six months ended June 30, 2024 compared with the 2023 period primarily due to higher interest expense for long-term debt ($59 million) and short-term debt ($18 million).
Income Tax Expense
Income taxes decreased $7 million in the six months ended June 30, 2024 compared with the 2023 period primarily due to higher amortization of excess deferred federal income taxes ($16 million), the absence in 2024 of a remeasurement of state deferred income tax assets and liabilities as a result of the enacted New York State legislation in 2023 ($10 million) and a decrease in the reserve for injuries and damages ($3 million), offset in part by higher income before income tax expense ($17 million) and lower flow through tax benefits in 2024 for plant-related items ($3 million).
67
O&R
For the Six Months Ended
June 30, 2024
For the Six Months Ended
June 30, 2023
(Millions of Dollars)
Electric
Gas
2024 Total
Electric
Gas
2023 Total
2024-2023 Variation
Operating revenues
$370
$157
$527
$341
$180
$521
$6
Purchased power
123
—
123
114
—
114
9
Gas purchased for resale
—
43
43
—
71
71
(28)
Other operations and maintenance
151
40
191
147
40
187
4
Depreciation and amortization
40
18
58
36
15
51
7
Taxes, other than income taxes
31
17
48
30
16
46
2
Operating income
$25
$39
$64
$14
$38
$52
$12
Electric
O&R’s results of electric operations for the six months ended June 30, 2024 compared with the 2023 period were as follows:
For the Six Months Ended
(Millions of Dollars)
June 30, 2024
June 30, 2023
Variation
Operating revenues
$370
$341
$29
Purchased power
123
114
9
Other operations and maintenance
151
147
4
Depreciation and amortization
40
36
4
Taxes, other than income taxes
31
30
1
Electric operating income
$25
$14
$11
O&R’s electric sales and deliveries for the six months ended June 30, 2024 compared with the 2023 period were:
Millions of kWh Delivered
Revenues in Millions (a)
For the Six Months Ended
For the Six Months Ended
Description
June 30, 2024
June 30, 2023
Variation
Percent
Variation
June 30, 2024
June 30, 2023
Variation
Percent
Variation
Residential/Religious (b)
977
883
94
10.6
%
$203
$189
$14
7.4
%
Commercial/Industrial
461
493
(32)
(6.5)
74
71
3
4.2
Retail choice customers
1,217
1,058
159
15.0
89
70
19
27.1
Public authorities
55
53
2
3.8
5
6
(1)
(16.7)
Other operating revenues (c)
—
—
—
—
(1)
5
(6)
Large
Total
2,710
2,487
223
9.0
%
(d)
$370
$341
$29
8.5
%
(a)
O&R’s New York electric delivery revenues are subject to a revenue decoupling mechanism, as a result of which delivery revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved. The majority of O&R’s electric distribution revenues in New Jersey are subject to a conservation incentive program, as a result of which distribution revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved. O&R’s electric transmission revenues in New Jersey are not subject to a conservation incentive program, and as a result, changes in such volumes do impact revenues.
(b)
“Residential/Religious” generally includes single-family dwellings, individual apartments in multi-family dwellings, religious organizations and certain other not-for-profit organizations.
(c)
Other electric operating revenues generally reflect changes in regulatory assets and liabilities in accordance with O&R’s electric rate plan.
(d)
After adjusting for weather and other variations, electric delivery volumes in O&R’s service area decreased 1.6 percent in the six months ended June 30, 2024 compared with the 2023 period.
Operating revenues
increased $29 million in the six months ended June 30, 2024 compared with the 2023 period primarily due to higher revenues from the New York electric rate plan ($10 million) and higher purchased power expenses ($9 million).
Purchased power
expenses increased $9 million in the six months ended June 30, 2024 compared with the 2023 period due to higher purchased volumes ($11 million), offset in part by lower unit costs ($2 million).
Other operations and maintenance
expenses increased $4 million in the six months ended June 30, 2024 compared with the 2023 period primarily due to higher uncollectible expenses ($2 million) and customer assistance costs ($1 million).
68
Depreciation and Amortization
expenses increased $4 million in the six months ended June 30, 2024 compared with the 2023 period due to higher electric utility plant balances.
Gas
O&R’s results of gas operations for the six months ended June 30, 2024 compared with the 2023 period were as follows:
For the Six Months Ended
(Millions of Dollars)
June 30, 2024
June 30, 2023
Variation
Operating revenues
$157
$180
$(23)
Gas purchased for resale
43
71
(28)
Other operations and maintenance
40
40
—
Depreciation and amortization
18
15
3
Taxes, other than income taxes
17
16
1
Gas operating income
$39
$38
$1
O&R’s gas sales and deliveries, excluding off-system sales, for the six months ended June 30, 2024 compared with the 2023 period were:
Thousands of Dt Delivered
Revenues in Millions (a)
For the Six Months Ended
For the Six Months Ended
Description
June 30, 2024
June 30, 2023
Variation
Percent
Variation
June 30, 2024
June 30, 2023
Variation
Percent
Variation
Residential
7,758
6,732
1,026
15.2
%
$117
$124
$(7)
(5.6)
%
General
1,193
1,408
(215)
(15.3)
14
21
(7)
(33.3)
Firm transportation
3,327
3,208
119
3.7
24
25
(1)
(4.0)
Total firm sales and transportation
12,278
11,348
930
8.2
(b)
$155
$170
$(15)
(8.8)
Interruptible sales
1,303
1,760
(457)
(26.0)
4
3
1
33.3
Generation plants
2
1
1
Large
—
—
—
—
Other
43
305
(262)
(85.9)
—
1
(1)
Large
Other gas revenues
—
—
—
—
(2)
6
(8)
Large
Total
13,626
13,414
212
1.6
%
$157
$180
$(23)
(12.8)
%
(a)
Revenues from New York gas sales are subject to a weather normalization clause and a revenue decoupling mechanism as a result of which delivery revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved.
(b)
After adjusting for weather and other variations, total firm sales and transportation volumes in O&R's service area decreased 2.3 percent in the six months ended June 30, 2024 compared with the 2023 period.
Operating revenues
decreased $23 million in the six months ended June 30, 2024 compared with the 2023 period primarily due to a decrease in gas purchased for resale ($28 million), offset in part by higher revenues from the New York gas rate plan ($3 million).
Gas purchased for resale
decreased $28 million in the six months ended June 30, 2024 compared with the 2023 period due to lower unit costs ($32 million), offset in part by higher purchased volumes ($4 million).
Depreciation and Amortization
expenses increased $3 million in the six months ended June 30, 2024 compared with the 2023 period due to higher gas utility plant balances.
Taxes, Other Than Income Taxes
Taxes, other than income taxes, increased by $2 million in 2024 compared with 2023 for the six months ended June 30, 2024. The principal components of taxes, other than income taxes, were:
69
For the Six Months Ended
June 30,
(Millions of Dollars)
2024
2023
Variation
Property taxes
$36
$35
$1
State and local taxes related to revenue receipts
6
6
—
Payroll taxes
6
5
1
Total
$48
(a)
$46
(a)
$2
(a)
Including sales tax on customers’ bills, total taxes other than income taxes in 2024 and 2023 were $62 million and $61 million, respectively.
Other Income (Deductions)
Other income decreased $8 million in the six months ended June 30, 2024 compared with the 2023 period primarily due to lower credits associated with components of pension and other postretirement benefits other than service cost ($9 million).
Con Edison Transmission
Other Income (Deductions)
Other income (deductions) increased $15 million in the six months ended June 30, 2024 compared with the 2023 period primarily due to higher investment income from MVP ($13 million).
Other
Income Tax Expense
Income taxes decreased $87 million in the six months ended June 30, 2024 compared with the 2023 period primarily due to lower income before income tax expense ($228 million), mostly due to the prior year gain on the sale of all of the stock of the Clean Energy Businesses and offsetting non-recurring tax benefits ($141 million) recognized in 2023.
Clean Energy Businesses
On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note Q and Note R to the Second Quarter Financial Statements. The Clean Energy Businesses’ results of operations for the six months ended June 30, 2024 compared with the 2023 period were as follows:
For the Six Months Ended
(Millions of Dollars)
June 30, 2024
June 30, 2023
Variation
Operating revenues
$—
$129
$(129)
Gas purchased for resale
—
41
(41)
Other operations and maintenance
—
47
(47)
Taxes, other than income taxes
—
4
(4)
Operating income
$—
$37
$(37)
Net Interest Expense
Net interest expense decreased $16 million in the six months ended June 30, 2024 compared with the 2023 period primarily due to lower unrealized gains on interest rate swaps in the 2023 period. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses and the impact on the 2023 period is shown through the date of sale. See Note Q and Note R to the Second Quarter Financial Statements.
Income Tax Expense
Income taxes decreased $3 million in the six months ended June 30, 2024 compared with the 2023 period primarily due to lower income before income tax expense ($5 million), a decrease in the valuation allowance on deferred state net operating losses ($2 million) and lower state income tax expense ($1 million), offset in part by higher renewable energy credits due to the sale of all of the stock of the Clean Energy Businesses on March 1, 2023 ($5 million).
Income (Loss) Attributable to Non-Controlling Interest
Loss attributable to non-controlling interest decreased $3 million in the six months ended June 30, 2024 compared with the 2023 period primarily due to t
he sale of all of the stock of the Clean Energy Businesses.
70
Liquidity and Capital Resources
The Companies monitor the financial markets closely, including borrowing rates and daily cash collections. Increases in aged accounts receivable balances, inflationary pressure and higher interest rates have increased the amount of capital needed by the Utilities and the costs of such capital. See "Interest Rate Risk," below, "Aged Accounts Receivable Balances," above and "Capital Requirements and Resources," below.
Con Edison and the Utilities have a $2,500 million revolving credit agreement (the Credit Agreement) in place under which banks are committed to provide loans on a revolving credit basis until March 2029, unless extended for an additional one-year term, subject to certain conditions. CECONY has a $500 million 364-day revolving credit agreement (the CECONY Credit Agreement) in place under which banks are committed to provide loans on a revolving credit basis until March 2025, subject to certain conditions. Con Edison and the Utilities have not entered into any loans under the Credit Agreement and CECONY has not entered into any loans under the CECONY Credit Agreement. See Note D to the Second Quarter Financial Statements.
The Companies’ liquidity reflects cash flows from operating, investing and financing activities, as shown on their respective consolidated statements of cash flows and as discussed below.
71
The Companies’ cash, temporary cash investments and restricted cash resulting from operating, investing and financing activities for the six months ended June 30, 2024 and 2023 are summarized as follows:
For the Six Months Ended June 30,
CECONY
O&R
Clean Energy Businesses (d)
Con Edison
Transmission
Other (a)(b)
Con Edison (b)
(Millions of Dollars)
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
Operating activities
$1,791
$1,140
$71
$108
$—
$—
$—
$(150)
$50
$66
$1,912
$1,164
Investing activities
(2,453)
(2,162)
(157)
(131)
—
(248)
(13)
(42)
1
4,035
(2,622)
1,452
Financing activities
985
1,314
86
6
—
—
(1)
206
(48)
(3,716)
1,022
(2,190)
Net change for the period
323
292
—
(17)
—
(248)
(14)
14
3
385
312
426
Balance at beginning of period
1,138
1,056
23
35
—
248
25
—
9
191
1,195
1,530
Balance at end of period (c)
$1,461
$1,348
$23
$18
$—
$—
$11
$14
$12
$576
$1,507
$1,956
Less: Cash balances held for sale (d)
—
—
—
—
—
—
—
—
7
1
7
1
Balance at end of period excluding held for sale
$1,461
$1,348
$23
$18
$—
$—
$11
$14
$5
$575
$1,500
$1,955
(a) Other includes the parent company, Con Edison’s tax equity investments, the deferred project held for sale and consolidation adjustments. See Note R
to the Second Quarter Financial Statements.
(b) Represents the consolidated results of operations of Con Edison and its businesses.
(c) See "Reconciliation of Cash, Temporary Cash Investments and Restricted Cash" in Note A to the Second Quarter Financial Statements.
(d) On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note Q and Note R to the Second Quarter Financial Statements.
72
Cash Flows from Operating Activities
The Utilities’ cash flows from operating activities primarily reflect their energy sales and deliveries and cost of operations. The volume of energy sales and deliveries is primarily affected by factors external to the Utilities, such as customer demand, weather, market prices for energy and economic conditions. Measures that promote distributed energy resources, such as distributed generation, demand reduction and energy efficiency, also affect the volume of energy sales and deliveries.
Pursuant to their rate plans, the Utilities have recovered from customers a portion of the tax liability they will pay in the future as a result of temporary differences between the book and tax basis of assets and liabilities. These temporary differences affect the timing of cash flows, but not net income, as the Companies are required to record deferred tax assets and liabilities at the current corporate tax rate for the temporary differences. For the Utilities, credits to their customers of the net benefits of the TCJA, including the reduction of the corporate tax rate to 21 percent, decrease cash flows from operating activities. Pursuant to their rate plans, the Utilities also recover from customers the amount of property taxes they will pay. The payment of property taxes by the Utilities affects the timing of cash flows and increases the amount of short-term borrowings issued by the Utilities when property taxes are due and as property taxes increase, but generally does not impact net income. See Note J to the
Second
Quarter Financial Statements.
In general, the Utilities suspended service disconnections during the COVID-19 pandemic. The Utilities’ rate plans include reconciliation of late payment charges and write-offs of customer accounts receivable balances to amounts reflected in rates, with recovery/refund from or to customers via surcharge/sur-credit. Although these regulatory mechanisms are in place, a continued slower recovery in cash of outstanding customer accounts receivable balances has impacted the Companies’ liquidity and may continue to impact liquidity. See “Aged Accounts Receivable Balances,” above.
Net income is the result of cash and non-cash (or accrual) transactions. Only cash transactions affect the Companies’ cash flows from operating activities. Principal non-cash charges or credits include depreciation, deferred income tax expense, amortizations of certain regulatory assets and liabilities and accrued unbilled revenue. Non-cash charges or credits may also be accrued under the revenue decoupling and cost reconciliation mechanisms in the Utilities’ New York electric and gas rate plans.
Net cash flows from operating activities for the six months ended June 30, 2024 for Con Edison were $748 million higher than in the 2023 period. The change in net cash flows for Con Edison primarily reflects:
•
higher net deferred credits, noncurrent liabilities, leases and other regulatory liabilities balances of $414 million;
•
an increase in accounts payable of $399 million;
•
a decrease in prepayments of $88 million; and
•
a decrease in the revenue decoupling mechanism receivable of $60 million.
Offset in part by
•
a decrease in accrued taxes of ($166 million); and
•
an increase in materials and supplies, including fuel oil and gas in storage of ($56 million).
Net cash flows from operating activities for the six months ended June 30, 2024 for CECONY were $651 million higher than in the 2023 period. The change in net cash flows for CECONY primarily reflects:
•
lower net deferred charges, noncurrent assets, leases and other regulatory assets balances of $425 million;
•
an increase in accounts payable of $235 million; and
•
a decrease in the revenue decoupling mechanism receivable of $44 million.
Offset in part by
•
a change in pensions and retiree benefits obligations of ($42 million).
73
Cash Flows From (Used in) Investing Activities
The following table summarizes key components of Con Edison’s investing cash flows.
For the Six Months Ended June 30,
(Millions of Dollars)
2024
2023
Variance
INVESTING ACTIVITIES
Utility construction expenditures
$(2,396)
$(2,097)
$(299)
Cost of removal less salvage
(214)
(196)
(18)
Non-utility construction expenditures
—
(140)
140
Proceeds from sale of the Clean Energy Businesses, net of cash and cash equivalents sold
—
3,927
(3,927)
Other investing activities
(12)
(42)
30
NET CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES
$(2,622)
$1,452
$(4,074)
Net cash flows from investing activities for Con Edison were $4,074 million lower for the six months ended June 30, 2024 compared with the 2023 period. The change for Con Edison primarily reflects:
•
the proceeds from the sale of all of the stock of the Clean Energy Businesses, net of cash and cash equivalents sold in the prior year of $3,927 million;
•
an increase in utility construction expenditures of $299 million; and
•
higher cost of removal less salvage of $18 million.
Offset in part by
•
a decrease in non-utility construction expenditures of ($140 million).
The following table summarizes key components of CECONY’s investing cash flows.
For the Six Months Ended June 30,
(Millions of Dollars)
2024
2023
Variance
INVESTING ACTIVITIES
Utility construction expenditures
$(2,242)
$(1,969)
$(273)
Cost of removal less salvage
(211)
(193)
(18)
NET CASH FLOWS USED IN INVESTING ACTIVITIES
$(2,453)
$(2,162)
$(291)
Net cash flows used in investing activities for CECONY were $291 million higher for the six months ended June 30, 2024 compared with the 2023 period. The change for CECONY primarily reflects:
•
an increase in utility construction expenditures of $273 million; and
•
higher cost of removal less salvage of $18 million.
Pursuant to their rate plans, the Utilities recover the cost of utility construction expenditures from customers, including an approved rate of return (before and after being placed in service and AFUDC before being placed in service). Increases in the amount of utility construction expenditures may temporarily increase the amount of short-term debt issued by the Utilities prior to the long-term financing of such amounts.
Cash Flows From (Used In) Financing Activities
The following table summarizes key components of Con Edison’s financing cash flows.
For the Six Months Ended June 30,
(Millions of Dollars)
2024
2023
Variance
FINANCING ACTIVITIES
Net issuance (payment) of short-term debt
$164
$(1,087)
$1,251
Issuance of long-term debt
1,400
500
900
Retirement of long-term debt
—
(60)
60
Debt issuance costs
(23)
(4)
(19)
Common stock dividends
(549)
(562)
13
Issuance of common shares for stock plans
30
27
3
Repurchase of common shares
—
(1,000)
1,000
Distribution to noncontrolling interest
—
(4)
4
NET CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES
$1,022
$(2,190)
$3,212
74
Net cash flows from financing activities for Con Edison were $3,212 million higher for the six months ended June 30, 2024 compared with the 2023 period and reflect the following transactions:
•
an increase in the net issuance of short-term debt of $1,251 million;
•
the repurchase of common shares of $1,000 million in the 2023 period;
•
an increase in proceeds in long-term debt of $900 million. In May, CECONY issued $1,400 million in aggregate of debentures, the net proceeds from which were used to repay short-term borrowings and for other general corporate purposes. See Note C to the Second Quarter Financial Statements; and
•
a decrease in common stock dividends of $13 million.
The following table summarizes key components of CECONY’s financing cash flows.
For the Six Months Ended June 30,
(Millions of Dollars)
2024
2023
Variance
FINANCING ACTIVITIES
Net issuance (payment) of short-term debt
$64
$(354)
$418
Issuance of long-term debt
1,400
500
900
Debt issuance costs
(23)
(5)
(18)
Capital contribution by Con Edison
80
1,701
(1,621)
Dividend to Con Edison
(536)
(528)
(8)
NET CASH FLOWS FROM FINANCING ACTIVITIES
$985
$1,314
$(329)
Net cash flows from financing activities for CECONY were $329 million lower for the six months ended June 30, 2024 compared with the 2023 period and reflects the following transactions:
•
a decrease in contributed equity from Con Edison of $1,621 million.
Offset in part by
•
an increase in proceeds in long-term debt of ($900 million) as described above; and
•
an increase in the net issuance of short-term debt of ($418 million).
Cash flows from financing activities of the Companies also reflect commercial paper issuances and repayments. The commercial paper amounts outstanding at June 30, 2024 and 2023 and the average daily balances for the six months ended June 30, 2024 and 2023 for Con Edison and CECONY were as follows:
2024
2023
(Millions of Dollars, except Weighted Average Yield)
Outstanding at June 30,
Daily
average
Outstanding at June 30,
Daily
average
Con Edison
$2,452
$1,840
$1,953
$1,172
CECONY
$1,967
$1,406
$1,946
$1,128
Weighted average yield
5.5
%
5.5
%
5.4
%
4.9
%
Capital Resources
Capital Resources
For each of the Companies, the common equity ratio at June 30, 2024 and December 31, 2023 was:
Common Equity Ratio
(Percent of total capitalization)
June 30, 2024
December 31, 2023
Con Edison
48.0
49.1
CECONY
46.9
47.9
75
Assets, Liabilities and Equity
The Companies' assets, liabilities, and equity at June 30, 2024 and December 31, 2023 are summarized as follows.
CECONY
O&R
Con Edison
Transmission
Other (a)
Con Edison (b)
(Millions of Dollars)
2024
2023
2024
2023
2024
2023
2024
2023
2024
2023
ASSETS
Current assets
$5,974
$5,981
$325
$302
$13
$25
$175
$229
$6,487
$6,537
Investments
653
608
23
22
405
365
—
4
1,081
999
Net plant
47,572
46,648
3,037
2,943
16
17
—
—
50,625
49,608
Other noncurrent assets
8,876
8,363
425
408
7
7
419
409
9,727
9,187
Total Assets
$63,075
$61,600
$3,810
$3,675
$441
$414
$594
$642
$67,920
$66,331
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
$5,348
$5,694
$463
$349
$7
$5
$398
$414
$6,216
$6,462
Noncurrent liabilities
15,963
15,950
1,145
1,146
(74)
(76)
(201)
(236)
16,833
16,784
Long-term debt
22,194
20,810
1,118
1,118
—
—
(1)
(1)
23,311
21,927
Equity
19,570
19,146
1,084
1,062
508
485
398
465
21,560
21,158
Total Liabilities and Equity
$63,075
$61,600
$3,810
$3,675
$441
$414
$594
$642
$67,920
$66,331
(a) Other includes the parent company, Con Edison’s tax equity investments, the deferred project held for sale and consolidation adjustments. See Note R
to the Second Quarter Financial Statements.
(b) Represents the consolidated results of operations of Con Edison and its businesses.
CECONY
Net plant at June 30, 2024 was $924 million higher than at December 31, 2023. The change in net plant primarily reflects an increase in electric ($1,235 million), gas ($372 million) and steam ($61 million) plant balances and an increase in construction work in progress ($242 million), offset in part by an increase in accumulated depreciation ($822 million) and a decrease in the general ($164 million) plant balance.
Other noncurrent assets at June 30, 2024 were $513 million higher than at December 31, 2023. The change in other noncurrent assets primarily reflects an increase in the regulatory assets for legacy meters ($413 million), COVID-19 pandemic deferrals ($57 million), revenue taxes ($29 million) and system peak reduction and energy efficiency programs ($27 million). The change in regulatory assets also reflects the period's amortization of accounting costs. See Note B to the Second Quarter Financial Statements.
Current liabilities at June 30, 2024 were $346 million lower than at December 31, 2023. The change in current liabilities primarily reflects a decrease in accounts payable ($258 million) and a decrease in the fair value of derivative liabilities ($108 million), offset in part by an increase in notes payable ($64 million).
Equity at June 30, 2024 was $424 million higher than at December 31, 2023. The change in equity primarily reflects net income for the six months ended June 30, 2024 ($880 million) and capital contributions from Con Edison ($80 million) in 2024, offset in part by common stock dividends to Con Edison ($536 million) in 2024.
O&R
Current assets at June 30, 2024 were $23 million higher than at December 31, 2023. The change in current assets primarily reflects an increase in accrued unbilled revenue ($22 million) and an increase in accounts receivable, net of allowance for uncollectible accounts ($14 million) (see "Aged Accounts Receivable Balances,” above), offset in part by a decrease in the revenue decoupling mechanism receivable ($13 million).
Net plant at June 30, 2024 was $94 million higher than at December 31, 2023. The change in net plant primarily reflects an increase in electric ($50 million), gas ($40 million) and general ($22 million) plant balances and an increase in construction work in progress ($27 million), offset in part by an increase in accumulated depreciation ($45 million).
Noncurrent assets at June 30, 2024 were $17 million higher than at December 31, 2023. The change in noncurrent assets primarily reflects an increases in regulatory assets ($25 million) and the fair value of derivative assets ($2 million), offset partially by a decrease in pension and retiree benefits ($14 million).
76
Current liabilities at June 30, 2024 were $114 million higher than at December 31, 2023. The change in current liabilities primarily reflects an increase in notes payable ($100 million) and an increase in the regulatory liabilities ($11 million).
Equity at June 30, 2024 was $22 million higher than at December 31, 2023. The change in equity primarily reflects net income for the six months ended June 30, 2024 ($40 million) and capital contributions from Con Edison ($20 million) in 2024, offset in part by common stock dividends to Con Edison ($34 million) in 2024 and a decrease in other comprehensive income ($4 million).
Con Edison Transmission
Current assets at June 30, 2024 were $12 million lower than at December 31, 2023. The change in current assets primarily reflects an investment in New York Transco ($13 million).
Investments at June 30, 2024 were $40 million higher than at December 31, 2023. The increase in investments reflects additional investment and investment income in New York Transco ($27 million) and investment income from MVP ($13 million).
Equity at June 30, 2024 was $23 million higher than at December 31, 2023. The change in equity primarily reflects Con Edison Transmission's earnings ($24 million), offset by dividends to Con Edison ($2 million).
Environmental Matters
Clean Energy Future
New York State’s Climate Leadership and Community Protection Act
In March 2024, O&R filed a petition with FERC to add a formula rate to the NYISO tariff to enable O&R to recover the costs of, and a return on investment for, two types of projects: (1) local transmission upgrades determined by the NYSPSC to be necessary or appropriate to meet the CLCPA goals of New York State and eligible for recovery under the FERC-approved cost sharing recovery agreement that socializes the costs statewide and (2) any regulated transmission projects (or portions thereof) eligible for recovery under the NYISO’s public policy transmission planning process. For NYSPSC-approved local transmission upgrades, O&R proposed the return on equity to be the lower of the NYSPSC-determined rates or 11.20 percent. For NYISO projects, O&R proposed a base return on equity of 10.7 percent, plus the 50 basis-point adder for participation in a Regional Transmission Organization, for a total return on equity of 11.20 percent. In May 2024, the FERC issued an order approving O&R’s formula rate filing but set the base return on equity for hearing and settlement and directed the parties to file initial briefs as to whether O&R is eligible for the 50-basis-point return on equity adder. In June 2024, O&R filed its initial brief with the FERC.
In May 2024, CECONY filed its inaugural annual Investing in Disadvantaged Communities Report, as required by the NYSPSC. The report summarizes the impacts of CECONY's investments in disadvantaged communities (DACs) within the company’s service territory, based on 2023 data. The report includes, among other things, building electrification and energy efficiency initiatives, as well as data related to the company’s long-running electric and gas operations. DAC locations were identified by New York State in connection with the implementation process for the CLCPA.
Offshore Wind
In February 2024, NYSERDA announced that it selected two offshore wind projects for contract negotiations representing 1,734 MW of energy by 2026. One of the conditional awards, Empire Wind 1, is expected to connect 810 MW of offshore wind electricity to the New York City electrical grid at CECONY’s Gowanus substation. In March 2024, FERC approved the interconnection agreement among Empire Offshore Wind, LLC, the NYISO, and CECONY. In May 2024, the NYSPSC approved a certificate of public convenience and necessity to allow
construction of Empire Wind 1 to begin.
Energy Storage
In June 2024, the NYSPSC issued an order approving a roadmap that established an energy storage goal of up to 6,000 MW by 2030. The original proposal issued by the NYSDPS and NYSERDA included the recommendation that New York State’s utilities study the potential of energy storage to provide non-market transmission and distribution services and identify services that are cost-effective compared to traditional alternatives.
77
Thermal Energy Networks
In April 2024, the NYSDPS approved CECONY’s and O&R’s December 2023 Stage 1 filings (Project Scope, Feasibility, and Stakeholder Engagement) for utility-scale thermal energy network pilot projects. The NYSDPS also confirmed CECONY and O&R are authorized to incur costs of $17.1 million and $4.6 million, respectively, through the completion of Stage 2 (Pilot Project Engineering Design and Customer Protection Plan). These projected costs are within the budgets proposed by CECONY and O&R of $255 million and $46 million, respectively. The remaining proposed budget amounts are subject to approval by the NYSPSC. In May 2024, CECONY filed a petition with the NYSDPS seeking $6 million to complete Stage 2 of its utility thermal energy network pilot projects, in addition to the $17.1 million described above.
Superfund
Gowanus Canal
Certain federal agencies and the NYSDEC have previously notified potentially responsible parties (PRPs), including CECONY, of their intent to perform a natural resource damage assessment for the Gowanus Canal Superfund Site. In March 2024, CECONY received a notice that the U.S. Fish and Wildlife Service, the NYSDEC, and the National Oceanic and Atmospheric Administration (collectively, the “Trustees”) published a Draft Natural Resource Assessment Plan, indicating that the Trustees are conducting a natural resource damage assessment to determine, among other things, the appropriate amount and type of projects needed to restore, replace, or acquire the equivalent of injured natural resources at the Gowanus Canal Superfund Site. In June 2024, the EPA issued an order amending its January 2020 order and that requires six PRPs, including CECONY, to initiate remedial action work in the middle segment of the Gowanus Canal Superfund Site. The EPA estimated the cost of this work would be $369 million (although actual costs may be significantly higher) and has indicated the work would take several years to complete. CECONY is unable to estimate its exposure to liability for the Gowanus Canal Superfund Site.
Other Environmental Matters
In April 2024, a CECONY feeder in the Bronx leaked resulting in a release of approximately one thousand gallons of dielectric fluid (a non-toxic synthetic compound similar to mineral oil), a portion of which migrated to a nearby sewer system and a sheen was seen in the Bronx River. CECONY stopped the feeder leak and began the cleanup on the same day the discharge occurred. CECONY, with assistance from the NYSDEC, also placed booms in the Bronx River at various locations to collect any fluid that made it to the river through the sewer system. CECONY is addressing the remaining sheen on the river, and also voluntarily cleaned up a significant amount of debris and trash in the area of the oil sheen. In April 2024, CECONY also discovered the presence of oil in the Hudson River within the permanent containment boom surrounding Pier 98 that likely originated from an internal leak of approximately 4,400 gallons of oil at CECONY’s steam generating plant on 59th Street in Manhattan. CECONY immediately installed an additional containment boom and an absorbent boom in the Hudson River and has estimated that 72 gallons of oil was released to the river. The U.S. Coast Guard, the New York City Department of Environmental Protection, and the NYSDEC were notified and oversaw the clean-up operations. The costs associated with these matters are not expected to have a material adverse effect on CECONY’s financial condition, results of operations or liquidity. In connection with the incidents, CECONY may incur monetary sanctions from government agencies of more than $0.3 million for violations of certain provisions regulating the discharge of materials into, and for the protection of, the environment.
For additional information about the Companies’ environmental matters, see Note G to the Second Quarter Financial Statements.
Con Edison Transmission
Con Edison Transmission owns a 45.7 percent interest in New York Transco that is comprised of: a 45.7 percent interest in New York Transco's Transmission Owner Transmission Solutions (TOTS) projects; a 45.7 percent interest in New York Transco’s New York Energy Solution (NYES) project; and a 41.7 percent interest in New York Transco’s share of the Propel NY Energy project. Con Edison Transmission also owns a 71.2 percent interest in Honeoye Storage Corporation (
Honeoye) and its interest in Mountain Valley Pipeline, LLC (MVP) is expected to be approximately 6.7 percent.
In June 2024, construction of the Dover Station, an additional network upgrade to support the NYES project, resumed following the reissuance of its permits. Construction is anticipated to be completed by June 2025.
Financial and Commodity Market Risks
78
The Companies are subject to various risks and uncertainties associated with financial and commodity markets. The most significant market risks include interest rate risk, commodity price risk and investment risk.
Interest Rate Risk
The Companies' interest rate risk primarily relates to new debt financing needed to fund capital requirements, including the construction expenditures of the Utilities and maturing debt securities, and variable-rate debt. Con Edison and its subsidiaries manage interest rate risk through the issuance of mostly fixed-rate debt with varying maturities and through opportunistic refinancing of debt. Con Edison and CECONY estimate that at June 30, 2024,
a 10 percent increase in interest rates applicable to its variable rate debt would result in an increase in annual interest expense
of $15 million and $13 million, respectively.
Un
der CECONY’s current electric, gas and steam rate plans, variations in actual variable rate tax-exempt debt interest expense, including costs associated with the refinancing of the variable rate tax-exempt debt, are reconciled to levels reflected in rates.
Higher interest rates have resulted in increased interest expense on commercial paper, variable-rate debt and long-term debt issuances.
Commodity Price Risk
Con Edison’s commodity price risk primarily relates to the purchase and sale of electricity, gas and related derivative instruments. The Utilities apply risk management strategies to mitigate their related exposures. See Note N to the Second Quarter Financial Statements.
Con Edison estimates that, as of June 30, 2024, a 10 percent decline in market prices would result in a decline in fair value of $155 million for the derivative instruments used by the Utilities to hedge purchases of electricity and gas, of which $142 million is for CECONY and $13 million is for O&R. As of June 30, 2023, Con Edison estimated that a 10 percent decline in market prices would result in a decline in fair value of $172 million for the derivative instruments used by the Utilities to hedge purchases of electricity and gas, of which $162 million is for CECONY and $10 million is for O&R. Con Edison expects that any such change in fair value would be largely offset by directionally opposite changes in the cost of the electricity and gas purchased.
The Utilities do not make any margin or profit on the electricity or gas they sell. In accordance with provisions approved by state regulators, the Utilities generally recover from full-service customers the costs they incur for energy purchased for those customers, including gains and losses on certain derivative instruments used to hedge energy purchased and related costs. However, increases in electric and gas commodity prices may contribute to a slower recovery of cash from outstanding customer accounts receivable balances.
Investment Risk
The Companies’ investment risk relates to the investment of plan assets for their pension and other postretirement benefit plans. Con Edison's investment risk also relates to the investments of Con Edison Transmission that are accounted for under the equity method. See "Investments" in Note A to the Second Quarter Financial Statements.
The Companies’ current investment policy for pension plan assets includes investment targets of 26 to 30 percent equity securities, 42 to 60 percent debt securities and 14 to 30 percent alternatives. At June 30, 2024, the pension plan investments consisted of 27 percent equity securities, 50 percent debt securities and 23 percent alternatives.
For the Utilities’ pension and other postretirement benefit plans, regulatory accounting treatment is generally applied in accordance with the accounting rules for regulated operations. In accordance with the Statement of Policy issued by the NYSPSC and its current electric, gas and steam rate plans, CECONY defers for payment to or recovery from customers the difference between the pension and other postretirement benefit expenses and the amounts for such expenses reflected in rates. O&R also defers such difference pursuant to its New York rate plans.
Material Contingencies
For information concerning potential liabilities arising from the Companies’ material contingencies, see "Other Regulatory Matters" in Note B and Notes G and H to the Second Quarter Financial Statements.
Item 3: Quantitative and Qualitative Disclosures About Market Risk
79
For information about the Companies’ primary market risks associated with activities in derivative financial instruments, other financial instruments and derivative commodity instruments, see “Financial and Commodity Market Risks,” in Part I, Item 2 of this report, that is incorporated herein by reference.
Item 4: Controls and Procedures
The Companies maintain disclosure controls and procedures designed to provide reasonable assurance that the information required to be disclosed in the reports that they submit to the Securities and Exchange Commission (SEC) is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Securities Exchange Act of 1934, as amended, is accumulated and communicated to the issuer’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. For each of the Companies, its management, with the participation of its principal executive officer and principal financial officer, has evaluated its disclosure controls and procedures as of the end of the period covered by this report and, based on such evaluation, has concluded that the controls and procedures are effective to provide such reasonable assurance. Reasonable assurance is not absolute assurance, however, and there can be no assurance that any design of controls or procedures would be effective under all potential future conditions, regardless of how remote.
There was no change in the Companies’ internal control over financial reporting that occurred during the Companies’ most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Companies’ internal control over financial reporting.
80
Part II Other Information
Item 1: Legal Proceedings
For information about certain legal proceedings affecting the Companies, see "Other Regulatory Matters" in Note B and Notes G and H to the financial statements in Part I, Item 1 of this report and "Environmental Matters - Superfund" and "Environmental Matters - Other Environmental Matters" in Part I, Item 2 of this report, that is incorporated herein by reference.
Item 1A: Risk Factors
There were no material changes in the Companies’ risk factors compared to those disclosed in Item 1A of the Form 10-K.
Item 5: Other Information
During the three months ended June 30, 2024, no director or officer (as defined in Rule 16a-1(f) of the Securities Exchange Act of 1934, as amended)
adopted
,
terminated
or modified any Rule 10b5-1 or non-Rule 10b5-1 trading arrangement (as defined in Item 408(a) of Regulation S-K).
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Pursuant to Item 601(b)(4)(iii)(A) of Regulation S-K, instruments defining the rights of holders of long-term debt of Con Edison’s subsidiaries other than CECONY, the total amount of which does not exceed ten percent of the total assets of Con Edison and its subsidiaries on a consolidated basis, are not filed as exhibits to Con Edison’s Form 10-K or Form 10-Q. Con Edison agrees to furnish to the SEC upon request a copy of any such instrument.
81
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, each Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Consolidated Edison, Inc.
Consolidated Edison Company of New York, Inc.
Date: August 1, 2024
By
/s/ Kirkland B. Andrews
Kirkland B. Andrews
Senior Vice President, Chief
Financial Officer and Duly
Authorized Officer
Directors of CONSOLIDATED EDISON INC - as per the latest proxy Beta
DIRECTORS
AGE
BIO
OTHER DIRECTOR MEMBERSHIPS
Tyler Jacks
63
Dr. Jacks currently serves as President of Break Through Cancer, an organization focusing on collaborative approaches to cancer research, has worked for over 30 years as a professor in the Department of Biology at Massachusetts Institute of Technology, and previously served as Founding Director of the Koch Institute, a cancer research center. As a result of his many years of experience in the field of cancer research, including board-level and industry-specific service on public company boards, Dr. Jacks brings to the Board significant scientific, technological and industry expertise. Dr. Jacks also brings valuable board-level experience from his many years serving on public company boards and scientific advisory boards of biotechnology companies, pharmaceutical companies and academic institutions.
AMGEN INC
Scott M Sperling
66
Mr. Sperling currently serves as Co-Chief Executive Officer of Thomas H. Lee Partners, LP (“THL”), a private equity firm. During his 20-year career leading THL, he has gained broad experience with the various industries represented in the THL portfolio, including healthcare and technology. As a result of this experience, Mr. Sperling brings to the Board valuable experience driving strategic direction and growth of organizations, and also corporate finance and acquisition experience. Mr. Sperling also brings valuable board-level experience from his years of serving on public company boards.
Nelson J Chai
58
Mr. Chai previously served as Chief Financial Officer of Uber Technologies Inc., a ridesharing technology platform, as President and CEO of The Warranty Group, a provider of specialty insurance products, and as President of CIT Group, a financial institution. As a result of Mr. Chai’s broad background and experience of holding executive management positions in a variety of industries and organizations, he brings to the Board valuable strategic leadership, financial acumen and expertise, and accounting experience.
Martin Harris
67
Dr. Harris currently serves as Chief Business Officer of Dell Medical School of the University of Texas, Austin. He has had a long-standing career as a physician and previously served as Chief Information Officer of Cleveland Clinic Hospital, and Chief Strategy Officer of the Cleveland Clinic Foundation. His background and experience as a strategic leader in healthcare organizations position Dr. Harris to provide valuable insight and perspective on healthcare. As a result of Dr. Harris’s experience, he brings to the Board valuable strategic leadership and industry knowledge. Dr. Harris also brings valuable board-level experience from his many years serving on public company boards.
Lars R
Dear Shareholder, Thank you for the confidence you have placed in Thermo Fisher Scientific. With your support, we continue to build a brighter future for our company and for our world. All of it begins with fulfilling our Mission to enable our customers to make the world healthier, cleaner and safer. Whether we are helping our customers diagnose disease, develop new treatments, protect our planet or keep people safe, we know our work is improving lives globally. This inspires our more than 120,000 colleagues to bring their best each day, and that fuels our success. Looking back on 2023, we effectively navigated a challenging macroeconomic environment, became an even stronger partner for our customers and made a positive impact on society. Starting with our financial results, our team’s outstanding execution and focus on our customers enabled us to deliver differentiated performance. This included revenue of $42.86 billion, GAAP diluted earnings per share (EPS) of $15.45 and adjusted EPS* of $21.55, along with free cash flow* of $7.01 billion. In addition, we returned significant capital to our shareholders through $3.5 billion of stock buybacks and dividends. At the same time, we continued to advance our proven growth strategy, which consists of three pillars: • Delivering high-impact innovation • Deepening our trusted partner status with our customers • Building on our unparalleled commercial engine In 2023, we invested $1.3 billion in R&D to deliver new technologies across our businesses that are helping our customers address some of the world’s greatest challenges. In addition, we made significant advancements in partnerships and collaborations with our customers, while also enhancing our offering with exciting complementary strategic acquisitions to further strengthen our trusted partner status. During the year we also made additional global investments in our capacity and unparalleled commercial capabilities. All of this is advancing our industry leadership and propelling our continued success. This success would not be possible without our commitment to living our 4i Values of Integrity, Intensity, Innovation and Involvement. As a Mission-driven company, we understand that our obligation goes beyond enabling our customers’ success and extends to making the world a better place by supporting our communities and being a good steward of our planet. In 2023, we made significant progress on our sustainability initiatives, advanced STEM education and global health equity, and collectively volunteered more than 100,000 hours to make a difference in our communities. We look forward to sharing more details in our annual Corporate Social Responsibility Report, which we’ll publish later this year. As I reflect on 2023, I am very proud of what we achieved – and all of it was made possible by our incredible colleagues. That’s why we continue to strengthen our vibrant and inclusive culture, and we continue to make the right long-term investments in our people to enable us to attract and retain the best talent in the industry. On behalf of our global team, thank you again for your support of Thermo Fisher Scientific. We look forward to your attendance at our 2024 Annual Meeting of Shareholders on May 22, 2024, at 9:00 a.m. (ET). Sincerely, Marc N. Casper / Chairman, President and Chief Executive Officer / April 9, 2024
Jim P Manzi
Mr. Manzi retired from the Board effective May 24, 2023.
Jennifer M Johnson
66
Ms. Johnson is the CEO of Franklin Resources, Inc., which is a global investment management holding company whose operations are conducted through its subsidiaries. Ms. Johnson is in compliance with our policy although she serves on other public company boards in her capacity as their CEO. In addition to the holding company, she serves on the boards of certain of its funds, which are registered as investment companies and are managed or advised by subsidiaries of Franklin Resources, Inc. Since Ms. Johnson’s responsibilities as a board member of these companies are integrally related to and subsumed within her role as CEO of Franklin Resources, Inc., the Board believes that this board service does not meaningfully increase her time commitments or fiduciary duties, as would be the case with service on unaffiliated public company boards. The Board appreciates shareholders’ focus on director commitments and believes that Ms. Johnson has demonstrated, and will continue to demonstrate, the ability to dedicate sufficient time to carry out her Board duties effectively.
James C Mullen
65
Mr. Mullen previously served as Executive Chair of the Board of Directors of Editas Medicine, a clinical-stage biotechnology company, as Chief Executive Officer of Patheon N.V., a contract development and manufacturing organization which was acquired by the Company in 2017, and as Chief Executive Officer of Biogen Inc. Due to his 35-plus years of senior leadership experience in the pharmaceutical and biotechnology industries, he brings to the Board valuable industry knowledge and industry-specific strategic leadership skills. Mr. Mullen also brings valuable board-level experience from his many years serving on public company boards in the pharmaceutical industry.
Dion J Weisler
Mr. Weisler previously served as Chief Executive Officer of HP Inc., an information technology company. Prior to that he served in various roles with increasing levels of responsibility at HP, Lenovo Group Inc., and at Telstra Corp. Lt., a telecommunications company. As a result of his experience, Mr. Weisler brings to the Board valuable strategic and senior management leadership skills, financial expertise, international experience, technological expertise and M&A experience. Mr. Weisler also brings valuable board-level experience from his service on public company boards.
Debora L Spar
60
Dr. Spar currently serves as a professor of Business Administration at Harvard Business School and Senior Associate Dean for Business in Global Society, and previously served as President and CEO of the Lincoln Center for the Performing Arts and as President of Barnard College. As a result of her varied experience, Dr. Spar brings to the Board valuable executive management and strategic leadership skills, financial expertise, and a unique perspective on technology’s role in shaping society and the global economy. Dr. Spar also brings valuable experience serving on public company boards.
Chandy
62
Ms. Chandy previously served as President of the Industrial Division of Pall Corporation, a leading supplier of filtration, separation and purification technologies and as Chief Marketing Officer at the Dow Chemical Company and at Rohm and Haas Corporation. Prior to that she served in various roles with increasing levels of responsibility at Thermo Fisher Scientific, Boston Scientific, and Millipore Corporation. As a proven executive with experience in global life sciences and multi-industrial companies, she brings to the Board experience in executive management, marketing, strategy, innovation, and M&A, and has experience in relevant market segments, technologies, geographies, and business functions. Ms. Chandy also brings valuable board-level experience from her many years serving on public company boards.
Alexandra Keith
56
Ms. Keith currently serves as Chief Executive Officer of P&G Beauty at Procter & Gamble, a global consumer products company. During her 30-plus year career at P&G, Ms. Keith served in roles in manufacturing, logistics, innovation planning, and marketing, then continued into various management and senior leadership roles. Ms. Keith also serves as Executive Sponsor for Corporate Sustainability at P&G, where she works alongside P&G’s Chief Sustainability Officer to guide the company’s sustainability progress. As an experienced executive, Ms. Keith brings to the Board strategic leadership skills, financial expertise, international business experience and M&A experience.
Insider Ownership of CONSOLIDATED EDISON INC
company Beta
Owner
Position
Direct Shares
Indirect Shares
CASPER MARC N
Chairman & CEO
131,175
5,000
CASPER MARC N
Director
101,192
5,000
Williamson Stephen
Sr. VP and CFO
27,393
18,700
Williamson Stephen
Director
19,399
12,674
Lagarde Michel
Director
18,134
0
Pettiti Gianluca
Executive Vice President
17,556
0
Britt Lisa P.
Director
17,323
0
Pettiti Gianluca
Director
16,663
0
MANZI JIM P
Director
14,807
0
Chai Nelson
Director
13,909
0
Boxer Michael A
SVP and General Counsel
12,901
0
Boxer Michael A
Director
12,546
0
WEISLER DION J
Director
4,516
0
Holmes Joseph R.
Director
1,786
0
Holmes Joseph R.
VP & Chief Accounting Officer
1,575
0
Spar Debora L
Director
1,207
0
AI Insights
Summary Financials of CONSOLIDATED EDISON INC
Beta
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