10-KPeriod: FY2020

CONSOLIDATED EDISON INC Annual Report, Year Ended Dec 31, 2020

Filed February 18, 2021For Securities:ED

Summary

Consolidated Edison, Inc. (Con Edison) reported its 2020 fiscal year results, highlighting stable performance from its core regulated utility businesses, Con Edison Company of New York (CECONY) and Orange and Rockland Utilities (O&R). Despite the economic impacts of COVID-19, which led to increased bad debt provisions and reduced business activity, the company's revenue decoupling mechanisms in New York largely insulated its regulated delivery revenues from volume fluctuations. Con Edison's Clean Energy Businesses continued to expand its renewable energy portfolio, contributing positively to overall results, although Con Edison Transmission faced challenges with its investment in the Mountain Valley Pipeline, leading to a significant impairment charge. The company maintained its commitment to shareholder returns through consistent dividend payments and emphasized ongoing investments in infrastructure for reliability and resilience.

Financial Highlights

49 data points
Beta

Revenue

$12.25B

Net Income

$1.10B

9.0% Net Margin

EPS (Diluted)

$3.28

Total Assets

$62.90B

Cash & Equivalents

$1.27B

Free Cash Flow

-$1.89B

Financial Statements
Beta
Revenue$12.25B
R&D Expenses$24.00M
Operating Expenses$9.59B
Operating Income$2.65B
Interest Expense$1.02B
Net Income$1.10B
EPS (Basic)$3.29
EPS (Diluted)$3.28
Shares Outstanding (Basic)334.80M
Shares Outstanding (Diluted)335.70M

Key Highlights

  • 1Consolidated Edison's regulated utility segments (CECONY and O&R) demonstrated resilience in 2020, largely supported by revenue decoupling mechanisms in New York, which helped mitigate impacts from COVID-19 related volume declines.
  • 2The company recorded a significant pre-tax impairment loss of $320 million on its investment in the Mountain Valley Pipeline LLC, reflecting challenges in that project's development.
  • 3Con Edison's Clean Energy Businesses continued to grow its renewable generation portfolio, adding to its diverse asset base.
  • 4The company highlighted increased provisions for uncollectible accounts due to the economic impact of COVID-19, impacting liquidity but largely managed through regulatory deferrals.
  • 5Capital expenditures remained robust, focused on maintaining and upgrading utility infrastructure, with significant planned investments in electric transmission and renewable energy projects.
  • 6Con Edison's financial condition remained stable, supported by its diversified business segments and access to capital markets, despite the challenging economic environment.
  • 7The company's stock experienced a decline in market price during 2020, underperforming both the S&P 500 and the S&P 500 Utilities Index.

Frequently Asked Questions

The COVID-19 pandemic led to increased provisions for uncollectible accounts due to economic hardship faced by customers. While business activity declined, Con Edison's New York regulated utility operations benefited from revenue decoupling mechanisms, which helped stabilize delivery revenues by reconciling actual revenues to authorized levels. The company also temporarily suspended service disconnections and late payment charges, impacting liquidity.

Con Edison recorded a pre-tax impairment loss of $320 million on its investment in the Mountain Valley Pipeline LLC. This reflects significant challenges in the project's development, including permitting issues and increased costs, which have cast doubt on its timely completion and future profitability, impacting the carrying value of Con Edison's investment.

Con Edison is actively involved in the clean energy transition, with its Clean Energy Businesses developing and operating renewable energy infrastructure projects. The company also invests in electric transmission facilities and is subject to New York's Climate Leadership and Community Protection Act goals, which drive investments in renewable energy, energy efficiency, and electrification.

The company plans substantial capital expenditures over the next few years, primarily focused on maintaining and enhancing the reliability and resilience of its utility infrastructure, including investments in electric and gas delivery systems, and expanding its clean energy portfolio.