01—Abstract
Summary
Summary of the 10-K filed February 18, 2016. Cited figures are marked; the original filing is the authoritative source.
Consolidated Edison, Inc. (Con Edison) presented a stable financial performance in its 2015 10-K filing, with its core utility operations in New York City and surrounding areas demonstrating resilience.
The company's primary business segments, Consolidated Edison Company of New York (CECONY) and Orange and Rockland Utilities (O&R), contributed significantly to overall revenues and net income, benefiting from approved rate plans that allow for the recovery of operating costs and capital investments. Con Edison also continued to expand its presence in competitive energy businesses and transmission projects, aiming to diversify its earnings and capitalize on growth opportunities in renewable energy infrastructure. Financially, Con Edison maintained a solid capital structure and adequate liquidity, supported by consistent cash flows from its regulated operations.
The company's forward-looking capital expenditure plans indicated a continued commitment to maintaining and upgrading its utility infrastructure, investing in new energy technologies, and pursuing strategic growth initiatives. Despite facing regulatory reviews and evolving energy policies such as the Reforming the Energy Vision (REV) proceeding, Con Edison demonstrated its ability to adapt and manage its business effectively, with a focus on providing reliable and sustainable energy services to its customers while delivering shareholder value through dividends and earnings growth.
02—Key points
Key Highlights
- Consolidated Edison, Inc. (Con Edison) operates primarily through its regulated utility subsidiaries, CECONY and O&R, serving millions of customers in New York, New Jersey, and Pennsylvania.
- The company's revenue streams are largely derived from regulated utility operations, with approved rate plans providing a degree of revenue stability and predictability.
- Con Edison is actively involved in the competitive energy sector, developing and operating renewable energy projects, and is also investing in electric and gas transmission infrastructure through Con Edison Transmission.
- The company's financial performance in 2015 showed stability, with net income and operating revenues demonstrating consistent performance, reflecting the regulated nature of its core business.
- Capital expenditures were significant, focused on infrastructure upgrades, reliability improvements, and investments in new energy technologies and renewable energy projects.
- Con Edison's commitment to shareholder returns is evident in its history of dividend payments, supported by earnings from its regulated utility and contracted assets.
- The company is navigating evolving regulatory landscapes, including the New York "Reforming the Energy Vision" (REV) initiative, which aims to modernize the energy system by integrating distributed energy resources and promoting customer choice.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2015filed February 18, 2016Financial Statements
FY2015 against FY2014
| Line item | FY2015FY2014 | Change |
|---|---|---|
| Revenue | $12.55B$12.92B | −2.8% |
| R&D Expenses | $23.00M$22.00M | +4.5% |
| Operating Expenses | $10.13B$10.76B | −5.8% |
| Operating Income | $2.43B$2.21B | +9.9% |
| Interest Expense | $632.00M$587.00M | +7.7% |
| Net Income | $1.19B$1.09B | +9.2% |
| EPS (Basic) | $4.07$3.73 | +9.1% |
| EPS (Diluted) | $4.05$3.71 | +9.2% |
| Shares Outstanding (Basic) | 293.00M292.90M | 0.0% |
| Shares Outstanding (Diluted) | 294.40M294.00M | +0.1% |
05—Questions
Frequently Asked Questions
What are Con Edison's main business segments?
Con Edison's primary business segments consist of its regulated utility operations through Consolidated Edison Company of New York (CECONY) and Orange and Rockland Utilities (O&R), which deliver electricity, gas, and steam. It also operates competitive energy businesses that sell electricity and provide energy-related services, and invests in transmission infrastructure through Con Edison Transmission.
How did Con Edison perform financially in 2015?
In 2015, Con Edison demonstrated stable financial performance, with its regulated utility operations providing a solid foundation for revenue and net income. The company's investments in competitive energy and transmission projects also contributed to its overall financial results.
What are Con Edison's key capital expenditure areas?
Con Edison's capital expenditures are focused on maintaining and enhancing the reliability and resilience of its utility infrastructure, investing in new energy technologies like distributed energy resources, and expanding its renewable energy and transmission projects.
What is the significance of the 'Reforming the Energy Vision' (REV) initiative for Con Edison?
The REV initiative, driven by the New York Public Service Commission, aims to modernize the state's energy system. For Con Edison, this means adapting its business model to accommodate distributed energy resources, promoting customer choice, and potentially playing a role in managing a distributed system platform, which involves new investment and operational considerations.
06—Continue