10-KPeriod: FY2011

CONSOLIDATED EDISON INC Annual Report, Year Ended Dec 31, 2011

Filed February 21, 2012For Securities:ED

Summary

Consolidated Edison, Inc. (Con Edison) and its subsidiary, Consolidated Edison Company of New York, Inc. (CECONY), reported operating revenues of $12.94 billion for the fiscal year ended December 31, 2011, a slight decrease from $13.33 billion in 2010. Net income for Con Edison rose to $1.05 billion, or $3.57 per diluted share, compared to $992 million, or $3.47 per diluted share, in the prior year. The company's regulated utility businesses, CECONY and Orange and Rockland Utilities, Inc. (O&R), continued to be the primary drivers of earnings, benefiting from approved rate plans designed to recover costs and provide a return on invested capital. Con Edison's capital expenditures were significant in 2011, totaling $1.89 billion for regulated utility construction and $114 million for competitive energy businesses, reflecting ongoing investments in infrastructure upgrades and modernization. The company's financial health remains stable, with a common equity ratio of 52.5% for Con Edison and 52.0% for CECONY at year-end 2011, alongside a reported ratio of earnings to fixed charges well above regulatory requirements. The company also highlighted its commitment to environmental sustainability and managing the risks associated with its operations and the energy markets.

Financial Highlights

48 data points
Beta

Revenue

$12.89B

Net Income

$1.05B

8.2% Net Margin

EPS (Diluted)

$3.57

Total Assets

$39.21B

Cash & Equivalents

$648.00M

Free Cash Flow

$3.06B

Financial Statements
Beta
Revenue$12.89B
R&D Expenses$23.00M
Operating Expenses$10.65B
Operating Income$2.24B
Interest Expense$582.00M
Net Income$1.05B
EPS (Basic)$3.59
EPS (Diluted)$3.57
Shares Outstanding (Basic)292.60M
Shares Outstanding (Diluted)294.40M

Key Highlights

  • 1Con Edison reported a net income of $1.05 billion for fiscal year 2011, an increase from $992 million in 2010, with diluted earnings per share of $3.57.
  • 2Operating revenues decreased slightly to $12.94 billion in 2011 from $13.33 billion in 2010.
  • 3CECONY, the primary utility subsidiary, saw its electric operating income increase by $146 million due to higher net revenues driven by rate increases, despite a slight decrease in electric delivery volumes.
  • 4Significant capital expenditures were made in 2011, with $1.78 billion invested by CECONY and $111 million by O&R in their energy delivery systems.
  • 5The company maintained a strong capital structure, with a common equity ratio of 52.5% for Con Edison and 52.0% for CECONY.
  • 6Con Edison's total shareholder return for 2011 was 30.82%, outperforming the S&P 500 and S&P Utilities Index.
  • 7Environmental matters, including greenhouse gas emissions reductions and liabilities related to manufactured gas sites and Superfund sites, are noted as ongoing areas of management attention and potential risk.

Frequently Asked Questions

In 2011, Con Edison reported a net income of $1.05 billion, or $3.57 per diluted share, an increase from $992 million, or $3.47 per diluted share, in 2010. Operating revenues were $12.94 billion, a slight decrease from $13.33 billion in 2010.

CECONY's electric operations saw a significant increase in operating income due to rate increases, while its gas and steam segments experienced slight declines in operating income despite some revenue growth. O&R's electric and gas operations also showed mixed performance, with electric operating income increasing slightly and gas operating income decreasing marginally.

Con Edison continued to invest heavily in its infrastructure. CECONY invested $1.78 billion in its energy delivery systems, while O&R invested $111 million. Competitive energy businesses accounted for $114 million in capital expenditures.

The company anticipates substantial capital investments over the next few years to maintain and upgrade its energy delivery systems. Con Edison expects to finance these requirements primarily through internally generated funds and the sale of its securities, and does not anticipate needing to issue additional common equity in 2012. The company also acknowledged the impact of financial market conditions and the need to access capital markets.