10-KPeriod: FY2019

CONSOLIDATED EDISON INC Annual Report, Year Ended Dec 31, 2019

Filed February 20, 2020For Securities:ED

Summary

Consolidated Edison, Inc. (Con Edison) reported its 2019 annual results, highlighting continued investment in its regulated utility businesses (CECONY and O&R) alongside growth in its clean energy and transmission segments. The company's core operations, primarily CECONY, serve a substantial customer base in New York City and Westchester County with electric, gas, and steam services. O&R provides similar services to customers in southeastern New York and northern New Jersey. The Clean Energy Businesses focus on renewable electric generation and energy infrastructure projects, while Con Edison Transmission invests in electric and gas transmission facilities. Con Edison's financial performance in 2019 reflected the stability of its regulated utility operations, supported by rate plan adjustments and mechanisms like revenue decoupling. While overall net income saw a slight decrease compared to 2018, driven by factors like the Clean Energy Businesses' performance and higher operating expenses, the company maintained its commitment to shareholder value through dividend payments. Significant capital expenditures were directed towards infrastructure reliability, modernization, and clean energy initiatives, funded through a combination of internally generated funds and external borrowings. The company continues to navigate evolving regulatory landscapes, including initiatives like Reforming the Energy Vision (REV), and faces ongoing environmental considerations, particularly related to climate change adaptation and remediation efforts.

Financial Statements
Beta
Revenue$12.57B
R&D Expenses$24.00M
Operating Expenses$9.90B
Operating Income$2.68B
Interest Expense$888.00M
Net Income$1.34B
EPS (Basic)$4.09
EPS (Diluted)$4.08
Shares Outstanding (Basic)328.50M
Shares Outstanding (Diluted)329.50M

Key Highlights

  • 1Con Edison's primary businesses remain its regulated utilities, CECONY and O&R, serving millions of customers across New York and New Jersey with essential energy delivery services.
  • 2The company is actively investing in its infrastructure to ensure reliability and resilience, with capital expenditures focused on modernizing electric, gas, and steam delivery systems.
  • 3The Clean Energy Businesses expanded their renewable generation portfolio through acquisitions, contributing to Con Edison's strategy of supporting clean energy transitions.
  • 4Con Edison Transmission continues to invest in critical infrastructure projects, enhancing the electric and gas transmission networks.
  • 5Regulatory frameworks, such as the REV initiative in New York, are shaping the energy landscape, with Con Edison actively participating in related proceedings and adapting its business models.
  • 6The company reaffirmed its commitment to shareholder returns through consistent dividend payments, supported by the stable earnings of its regulated utility segments.
  • 7Environmental sustainability and climate change adaptation are key strategic considerations, with ongoing efforts to reduce emissions and manage climate-related risks.

Frequently Asked Questions

Con Edison's primary business segments include its regulated utilities, Consolidated Edison Company of New York (CECONY) and Orange and Rockland Utilities (O&R), which provide electric, gas, and steam services. Additionally, the company operates Con Edison Clean Energy Businesses, focusing on renewable energy projects, and Con Edison Transmission, which invests in electric and gas transmission infrastructure.

In 2019, Con Edison's net income for common stock was $1.343 billion, a slight decrease from $1.382 billion in 2018. This performance was influenced by the regulated utility operations, the Clean Energy Businesses' results, and increased operating expenses, including pension and other postretirement benefits, and property taxes. Despite the slight decline, the company demonstrated stable earnings from its core utility operations.

Con Edison's capital expenditures are primarily focused on maintaining and improving the reliability and resilience of its electric, gas, and steam delivery systems. This includes investments in infrastructure modernization, clean energy technologies, and programs to enhance customer control over energy usage, as well as accelerating the replacement of aging gas infrastructure.

Con Edison is actively addressing climate change by investing in climate vulnerability studies and developing adaptation strategies, aiming to mitigate risks from sea-level rise, storm surge, and extreme weather. The company is also working to reduce its greenhouse gas emissions and is committed to supporting New York State's clean energy goals, including those related to renewable energy and emissions reductions.