10-KPeriod: FY2007

CONSOLIDATED EDISON INC Annual Report, Year Ended Dec 31, 2007

Filed February 22, 2008For Securities:ED

Summary

Consolidated Edison, Inc. (Con Edison) and its subsidiary, Consolidated Edison Company of New York, Inc. (Con Edison of New York), filed their combined 2007 10-K on February 22, 2008. The report details the financial performance and operational highlights of the utility holding company and its primary regulated utility subsidiary, which serves the New York City metropolitan area. Con Edison's business is primarily driven by its regulated utility operations, Con Edison of New York and Orange and Rockland Utilities (O&R), which provide electric, gas, and steam services. The company also maintains competitive energy businesses, though utility operations are the core earnings generators. The filing highlights steady operational performance, with a focus on capital investments for infrastructure reliability and growth. Investors can anticipate continued regulatory oversight impacting rates and earnings, as well as a strategic focus on managing operational costs and environmental compliance.

Key Highlights

  • 1The filing is a combined report for Consolidated Edison, Inc. (Con Edison) and its subsidiary, Consolidated Edison Company of New York, Inc. (Con Edison of New York).
  • 2Con Edison's primary business segments are its regulated utilities (Con Edison of New York and O&R) and its competitive energy businesses.
  • 3Con Edison of New York's electric, gas, and steam operations represent the largest portion of the company's overall business.
  • 4The company emphasizes significant ongoing utility construction expenditures, estimated to exceed $8 billion over the next three years, aimed at enhancing reliability and meeting demand growth.
  • 5Management discusses the impact of regulatory rate plans, noting that utilities generally recover prudently incurred fuel, purchased power, and gas costs from customers.
  • 6Environmental matters, including Superfund sites and asbestos, are highlighted as significant liabilities and operational considerations.
  • 7Con Edison's competitive energy businesses are actively managed, with agreements in place for the sale of significant power generating projects, impacting future segment contributions.

Frequently Asked Questions

Con Edison's primary business is the generation, transmission, and distribution of electricity, gas, and steam. Its main operations are conducted through its regulated utility subsidiaries, Con Edison of New York and Orange and Rockland Utilities (O&R), serving customers in New York, New Jersey, and Pennsylvania. The company also has competitive energy businesses.

The Utilities (Con Edison of New York and O&R) generally recover their prudently incurred fuel, purchased power, and gas costs from customers through rate plans approved by state regulators. They also utilize derivative instruments and firm contracts to hedge against price volatility in energy markets.

Key financial risks include regulatory actions that could impact rates and earnings, energy market price volatility, substantial ongoing utility construction programs requiring significant capital, credit risk associated with financial and energy transactions, and potential liabilities arising from environmental matters and legal proceedings.

Con Edison anticipates substantial ongoing capital investment, estimated to exceed $8 billion over the next three years, primarily for its regulated utility operations. These expenditures are focused on maintaining and improving the reliability of its electric, gas, and steam delivery systems and meeting projected demand growth.