10-KPeriod: FY2023

CONSOLIDATED EDISON INC Annual Report, Year Ended Dec 31, 2023

Filed February 15, 2024For Securities:ED

Summary

Consolidated Edison, Inc. (Con Edison) reported its fiscal year 2023 results, highlighting stable performance from its core regulated utility businesses (CECONY and O&R) despite the sale of its Clean Energy Businesses earlier in the year. CECONY, the primary subsidiary, continued to demonstrate resilience with increased operating revenues in its electric segment, driven by rate increases, while managing higher operating and maintenance expenses. The gas segment saw a decrease in operating revenues, partly due to lower gas purchased for resale. O&R's electric and gas operations also experienced revenue shifts, with electric revenues down slightly and gas revenues seeing a decrease due to lower purchased gas costs. The company's capital investments remain focused on infrastructure upgrades and reliability, with significant expenditures planned for CECONY's electric and gas operations to support New York's clean energy goals and address reliability needs. Con Edison Transmission continues its strategic investments in electric transmission projects, contributing to the broader clean energy transition. The company maintained its financial stability and access to capital markets, with credit ratings remaining solid.

Financial Statements
Beta
Revenue$14.48B
Operating Expenses$12.33B
Operating Income$3.20B
Interest Expense$1.02B
Net Income$2.52B
EPS (Basic)$7.25
EPS (Diluted)$7.21
Shares Outstanding (Basic)347.70M
Shares Outstanding (Diluted)349.30M

Key Highlights

  • 1Consolidated Edison, Inc. (Con Edison) reported its fiscal year 2023 results, with a net income for common stock of $2,519 million, a significant increase from $1,660 million in 2022, largely driven by the gain on the sale of Clean Energy Businesses.
  • 2CECONY, the largest subsidiary, saw increased electric operating income, primarily due to electric base rate increases and lower operation and maintenance expenses, partially offset by higher purchased power and depreciation expenses.
  • 3O&R's electric operations experienced a decrease in operating income due to lower revenues and higher operations and maintenance expenses, while gas operations saw a slight decrease in income.
  • 4The company's capital investments are substantial, with CECONY's electric operations alone requiring $2,909 million in 2023, and O&R's electric and gas operations totaling $296 million, reflecting ongoing infrastructure development and modernization.
  • 5Con Edison Transmission reported positive income, driven by higher investment income, particularly from its stake in the Mountain Valley Pipeline and New York Transco projects.
  • 6The sale of the Clean Energy Businesses on March 1, 2023, significantly impacted the consolidated results, contributing a pre-tax gain of $865 million to Con Edison's overall financial performance for the year.
  • 7The company continues to emphasize investments in clean energy and grid modernization, with significant capital expenditures allocated to address reliability needs and support New York State's climate goals, such as the Brooklyn Clean Energy Hub and the Reliable Clean City - Idlewild Project.

Frequently Asked Questions

In fiscal year 2023, Con Edison reported a net income for common stock of $2,519 million, an increase from $1,660 million in 2022. This increase was significantly influenced by a pre-tax gain of $865 million from the sale of its Clean Energy Businesses. The core utility operations of CECONY and O&R demonstrated stable performance, with CECONY's electric segment showing improved income due to rate increases and cost management.

The sale of the Clean Energy Businesses on March 1, 2023, had a substantial positive impact on Con Edison's 2023 financial results, contributing a pre-tax gain of $865 million (net of tax: $767 million). While this sale reduced the company's overall operating revenues and income from those businesses, the significant gain significantly boosted the consolidated net income for the year.

Con Edison's capital investment strategy remains focused on maintaining and enhancing the reliability, resilience, and safety of its utility infrastructure. Key priorities include significant investments in CECONY's electric and gas operations to modernize the grid, support the transition to clean energy, and meet regulatory requirements and climate goals. This includes projects like the Brooklyn Clean Energy Hub and the Reliable Clean City - Idlewild Project, aimed at addressing future reliability needs and enabling the integration of renewable energy resources.

Con Edison is actively aligning its strategy with New York State's Climate Leadership and Community Protection Act (CLCPA) and New York City's climate goals. Investments are being made in grid modernization, energy efficiency programs, electric vehicle infrastructure, and supporting the integration of renewable energy sources like offshore wind. The company is also focusing on reimagining its gas system for a cleaner energy future, as outlined in its gas system long-term plan.