01—Abstract
Summary
Summary of the 10-K filed February 22, 2010. Cited figures are marked; the original filing is the authoritative source.
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 milliona, 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.
02—Key points
Key Highlights
- Net 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.
- CECONY'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.
- CECONY invested $2.1 billion in upgrading and reinforcing its energy delivery systems in 2009, with O&R investing $132 million.
- Con Edison's total operating revenues decreased to $13.032 billion in 2009 from $13.583 billion in 2008.
- The company's regulated utility operations, particularly CECONY, continued to be the primary contributor to earnings.
- Con Edison's common stock total return for 2009 was 24.02%, slightly underperforming the S&P 500 but outperforming the S&P Utilities Index.
- The company maintained a focus on environmental sustainability, reporting a 36% decrease in greenhouse gas emissions over the past five years.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2009filed February 22, 2010Financial Statements
| 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 |
05—Questions
Frequently Asked Questions
What was Con Edison's financial performance in 2009?
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.
How did regulatory changes impact Con Edison's results?
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.
What were the key investments made by Con Edison in 2009?
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.
How did Con Edison's competitive energy businesses perform?
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.
06—Continue