01—Abstract
Summary
Summary of the 10-K filed February 15, 2024. Cited figures are marked; the original filing is the authoritative source.
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.
02—Key points
Key Highlights
- Consolidated 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.
- CECONY, 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.
- O&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.
- The 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.
- Con Edison Transmission reported positive income, driven by higher investment income, particularly from its stake in the Mountain Valley Pipeline and New York Transco projects.
- The 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.
- The 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.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2023filed February 15, 2024Financial Statements
FY2023 against FY2022
| Line item | FY2023FY2022 | Change |
|---|---|---|
| Revenue | $14.48B$15.46B | −6.3% |
| Operating Expenses | $12.33B$13.05B | −5.5% |
| Operating Income | $3.20B$2.62B | +21.8% |
| Interest Expense | $1.02B$987.00M | +3.6% |
| Net Income | $2.52B$1.66M | +151466.3% |
| EPS (Basic) | $7.25$4.68 | +54.9% |
| EPS (Diluted) | $7.21$4.66 | +54.7% |
| Shares Outstanding (Basic) | 347.70M354.50M | −1.9% |
| Shares Outstanding (Diluted) | 349.30M355.80M | −1.8% |
05—Questions
Frequently Asked Questions
What was the financial performance of Con Edison in fiscal year 2023?
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.
How did the sale of the Clean Energy Businesses affect Con Edison's financial results?
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.
What are Con Edison's key capital investment priorities for the future?
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.
How is Con Edison addressing the transition to clean energy and regulatory mandates?
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.
06—Continue