10-KPeriod: FY2009

CONSOLIDATED EDISON INC Annual Report, Year Ended Dec 31, 2009

Filed February 22, 2010For Securities:ED

Summary

Consolidated Edison, Inc. (Con Edison) and its subsidiary, Consolidated Edison Company of New York, Inc. (CECONY), reported their fiscal year results ending December 31, 2009. The company primarily generates revenue from regulated utility businesses (electricity, gas, and steam delivery) in New York City and surrounding areas, as well as competitive energy businesses. For the year, Con Edison reported net income of $868 million, a decrease from $1,196 million in 2008, largely due to the absence of a significant gain on the sale of electricity generating plants in the prior year and other operational impacts. The company's regulated utility operations remain the core of its earnings. CECONY's electric, gas, and steam rate plans, along with O&R's electric and gas rate plans, are designed to recover costs and provide a regulated return on investment. Con Edison also highlighted its ongoing capital investments in infrastructure upgrades, the impact of regulatory decisions on its rate plans, and its exposure to financial and commodity market risks. Despite a challenging economic environment, the company maintained its commitment to reliable energy services and environmental sustainability.

Financial Highlights

46 data points
Beta

Revenue

$13.03B

Net Income

$868.00M

6.7% Net Margin

EPS (Diluted)

$3.14

Total Assets

$33.87B

Cash & Equivalents

$260.00M

Free Cash Flow

$2.46B

Financial Statements
Beta
Revenue$13.03B
R&D Expenses$27.00M
Operating Expenses$11.13B
Operating Income$1.90B
Interest Expense$590.00M
Net Income$868.00M
EPS (Basic)$3.16
EPS (Diluted)$3.14
Shares Outstanding (Basic)275.20M
Shares Outstanding (Diluted)276.30M

Key Highlights

  • 1Net income for Con Edison decreased to $868 million in 2009 from $1,196 million in 2008, largely due to the absence of a significant gain from the sale of electricity generating plants in the prior year.
  • 2CECONY's electric, gas, and steam rate plans, along with O&R's electric and gas rate plans, were updated or filed for new plans, impacting revenue recovery and return on equity.
  • 3CECONY invested $2.1 billion in upgrading and reinforcing its energy delivery systems in 2009, with O&R investing $132 million.
  • 4Con Edison's total operating revenues decreased to $13.032 billion in 2009 from $13.583 billion in 2008.
  • 5The company's regulated utility operations, particularly CECONY, continued to be the primary contributor to earnings.
  • 6Con Edison's common stock total return for 2009 was 24.02%, slightly underperforming the S&P 500 but outperforming the S&P Utilities Index.
  • 7The company maintained a focus on environmental sustainability, reporting a 36% decrease in greenhouse gas emissions over the past five years.

Frequently Asked Questions

In 2009, Con Edison reported a net income of $868 million, or $3.16 per diluted share, a decrease from $1,196 million, or $4.37 per diluted share, in 2008. The decrease was largely attributed to the absence of a significant gain from the sale of electricity generating plants in the prior year, partially offset by operational performance and favorable regulatory outcomes.

Con Edison's regulated utility operations are significantly influenced by rate plans approved by regulatory agencies. In 2009, CECONY received electric rate increases and entered into a Joint Proposal for future electric rate increases. O&R also saw gas rate plan updates. These regulatory adjustments are designed to recover costs and provide a return on investment, impacting the company's revenue and earnings.

Con Edison continued to invest significantly in its infrastructure. CECONY invested $2.1 billion in upgrading and reinforcing its energy delivery systems, while O&R invested $132 million. These investments are crucial for maintaining reliability and meeting future energy demands.

The competitive energy businesses saw a decrease in earnings from continuing operations in 2009 compared to 2008. This was primarily due to a significant gain on the sale of electricity generating plants in 2008, partially offset by improved mark-to-market gains and higher retail electricity margins in 2009.