10-KPeriod: FY2010

CONSOLIDATED EDISON INC Annual Report, Year Ended Dec 31, 2010

Filed February 22, 2011For Securities:ED

Summary

Consolidated Edison, Inc. (Con Edison) and its subsidiary, Consolidated Edison Company of New York, Inc. (CECONY), reported solid financial performance for the fiscal year ended December 31, 2010. Con Edison's primary earnings driver remains its regulated utility businesses, CECONY and Orange and Rockland Utilities (O&R), which are expected to continue generating the majority of the company's income. The company reported increased operating revenues for both Con Edison and CECONY, driven by rate plan adjustments and increased energy delivery volumes. Con Edison's net income for common stock rose to $992 million in 2010, an increase from $868 million in 2009, with diluted earnings per share of $3.47. The company highlighted significant investments in upgrading its energy delivery infrastructure, with CECONY investing $1.87 billion and O&R investing $135 million. Con Edison also maintained a stable common equity ratio, around 50%, and demonstrated a consistent ability to access capital markets to fund its operations and investments.

Financial Highlights

48 data points
Beta

Revenue

$13.32B

Net Income

$992.00M

7.4% Net Margin

EPS (Diluted)

$3.47

Total Assets

$36.35B

Cash & Equivalents

$338.00M

Free Cash Flow

$2.35B

Financial Statements
Beta
Revenue$13.32B
R&D Expenses$23.00M
Operating Expenses$11.21B
Operating Income$2.12B
Interest Expense$597.00M
Net Income$992.00M
EPS (Basic)$3.49
EPS (Diluted)$3.47
Shares Outstanding (Basic)284.30M
Shares Outstanding (Diluted)285.90M

Key Highlights

  • 1Con Edison's net income increased to $992 million in 2010, up from $868 million in 2009, with diluted EPS of $3.47.
  • 2CECONY made substantial capital investments, spending $1.87 billion on upgrading its energy delivery systems in 2010.
  • 3O&R also invested $135 million in its energy delivery systems.
  • 4The company's regulated utilities (CECONY and O&R) are expected to remain the primary contributors to earnings.
  • 5Con Edison's common equity ratio remained strong, hovering around 50% throughout the reporting period.
  • 6The company issued $305 million of common stock and $925 million of debentures by CECONY and $170 million by O&R, indicating continued access to capital markets.

Frequently Asked Questions

Con Edison is a holding company whose primary businesses are its regulated utility subsidiaries: Consolidated Edison Company of New York, Inc. (CECONY) and Orange and Rockland Utilities, Inc. (O&R). These utilities deliver electricity, natural gas, and steam services. CECONY serves New York City and Westchester County, while O&R serves parts of southeastern New York, northern New Jersey, and northeastern Pennsylvania. The company also has competitive energy businesses, but the regulated utilities are expected to provide substantially all of its earnings.

Con Edison reported an increase in net income for common stock to $992 million in 2010, up from $868 million in 2009. Diluted earnings per share also increased to $3.47 in 2010 from $3.14 in 2009. This growth was driven by higher operating revenues, primarily due to rate plan adjustments and increased energy delivery volumes, as well as the operating results of its competitive energy businesses.

Con Edison's major capital expenditures are focused on upgrading and reinforcing its energy delivery infrastructure to ensure safety and reliability. In 2010, CECONY invested $1.87 billion and O&R invested $135 million in their respective energy delivery systems. These investments are crucial for meeting growing energy demands and maintaining service quality.

Con Edison's utility subsidiaries, CECONY and O&R, are heavily regulated by state utility commissions, primarily the New York State Public Service Commission (NYSPSC) and the New Jersey Board of Public Utilities (NJBPU). These commissions approve rate plans, which dictate the prices the utilities can charge customers and allow them to recover their costs, including capital investments. Rate plans often include mechanisms like revenue decoupling, which can mitigate the impact of volume fluctuations on revenues, and provisions for cost reconciliations, allowing recovery of certain expenses.