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ED · Consolidated Edison

50 filings

10-Q

ED 10-Q Quarterly Reports

Consolidated Edison - 50 quarterly reports

Filing record · 2016–202610-K1110-Q338-K143

ED filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 143 current reports (8-K) between 2016 and 2026.

  1. FY2018 annual report10-K · Feb ’19Feb ’19
  2. Material agreement8-K · Jun ’21Jun ’21
  3. Material agreement8-K · Nov ’25Nov ’25
  1. 2026-Q3

    Consolidated Edison Quarterly Report for Q3 Ended Sep 30, 2026

    Consolidated Edison, Inc. (ED) reported solid financial results for the nine months ended September 30, 2026. Total operating revenues increased to $14.078 billion, a 9% rise compared to the same period in 2025, driven primarily by electric and gas revenue growth. Net income rose to $1.998 billion, a 15.7% increase year-over-year, resulting in diluted earnings per share of $5.42, up from $4.83 in the prior year. This performance was bolstered by a significant gain on the sale of equity interest in Mountain Valley Pipeline, LLC, contributing $189 million before taxes. Operating expenses also saw an increase, largely due to higher purchased power and fuel costs. The company continues to invest heavily in utility capital expenditures, totaling $4.051 billion for the nine months ended September 30, 2026, a notable increase from the previous year, reflecting ongoing infrastructure improvements and grid modernization efforts. Despite increased operating expenses and capital investments, Con Edison maintained a strong common equity ratio of 49.5% as of September 30, 2026, indicating a robust capital structure.

    Nov 5, 2026
  2. 2026-Q2

    Consolidated Edison Quarterly Report for Q2 Ended Jun 30, 2026

    Consolidated Edison's second-quarter 2026 results show a solid quarter and a strong first half, helped by a one-time gain. For the three months ended June 30, 2026, net income for common stock rose to $308 million ($0.83 per diluted share) from $246 million ($0.68) a year earlier. For the six months, net income was $1,232 million ($3.36 diluted EPS) versus $1,038 million ($2.92), with the first half including a $189 million pre-tax ($134 million after-tax, or $0.37 per share) gain on the sale of its ~6.6% stake in Mountain Valley Pipeline. Excluding that gain, underlying growth is driven mainly by higher electric and gas rate base at CECONY, though operating income growth was partly offset by higher property taxes and lower pension-related credits in other income. Balance sheet and financing activity were significant. Total assets grew to $76.5 billion, and shareholders' equity rose to $25.7 billion, aided by roughly $1.7 billion of common equity raised through public offerings and forward sales under a new $2.0 billion at-the-market program. The common equity ratio improved to 48.9% at Con Edison. Long-term debt increased to $26.8 billion after CECONY issued $1.3 billion of debentures, and commercial paper and term loan balances were paid down. Operating cash flow fell to $1,971 million from $2,816 million, mainly due to swings in payables, receivables and taxes receivable, while capital expenditures remained high at $2.5 billion for the first half. Investors should weigh continued regulatory and affordability pressures. Aged customer receivables at CECONY remain elevated at $1.385 billion over 60 days. New York enacted Chapter 58, which introduces budget-constrained rate plans and affordability-linked ROE adjustments for filings after January 1, 2027. CECONY also has a pending steam rate case seeking a $66 million increase, and a $1.0 billion income tax regulatory asset remains subject to a potential NYSPSC audit outcome. Management reports no material changes to risk factors.

    Aug 6, 2026
  3. 2026-Q1

    Consolidated Edison Quarterly Report for Q1 Ended Mar 31, 2026

    Consolidated Edison (ED) reported first-quarter 2026 net income of $924 million, or $2.54 per diluted share, up from $791 million, or $2.25, in the prior-year quarter. The improvement was driven largely by a one-time $189 million pre-tax gain ($134 million after tax, or $0.37 per share) from the sale of its approximately 6.6% stake in Mountain Valley Pipeline. Excluding that gain, earnings were essentially flat to modestly lower: CECONY's net income fell to $733 million from $745 million, reflecting higher operations and maintenance expense and interest costs and the dilutive effect of share issuances. Operating revenues rose 6.2% to $5.095 billion, led by steam and electric revenue growth, while operating income increased 4.6% to $1.177 billion. Balance sheet and cash flow picture is more mixed. Operating cash flow fell sharply to $174 million from $837 million, mainly because of a $350 million drop in net regulatory liability/deferred credit activity tied to higher recoverable energy costs and a $691 million increase in prepayments. Con Edison funded its capital program (utility capex of $1.17 billion) with a $776 million common equity offering settled from a forward sale, MVP sale proceeds of $358 million, and reduced short-term debt, including repayment of a $500 million term loan. Cash fell to $147 million, and notes payable declined to $869 million. Common equity ratio improved to 50.0% from 48.6%, reflecting the equity issuance. Key watch items for investors include aged customer receivables (CECONY balances over 60 days of $1.35 billion), the pending steam rate case requesting a $66 million increase effective November 2026, a $209 million-scale regulatory asset from the historical income tax normalization audit that remains unreserved, and a potential FERC-ordered PJM cost-allocation refund that is not yet estimable. The company also reports a new NYSPSC cybersecurity regulation effective June 2026 and no material changes to risk factors.

    May 7, 2026
  4. 2025-Q3

    Consolidated Edison Quarterly Report for Q3 Ended Sep 30, 2025

    Consolidated Edison's third-quarter 2025 10-Q shows steady regulated-utility earnings growth, driven mainly by CECONY. Con Edison reported Q3 2025 net income for common stock of $688 million ($1.90 diluted EPS), up from $588 million ($1.69) a year earlier, and nine-month net income of $1,726 million ($4.83 diluted EPS) versus $1,510 million ($4.35). Operating revenues rose 11% for the quarter to $4,530 million, and CECONY accounted for about 93% of earnings. The primary drivers were higher electric rate base, lower commercial paper interest expense, and the favorable NYSPSC order on the customer billing system, partly offset by dilution from the equity issuance. The balance sheet strengthened materially. Shareholders' equity rose to $24,168 million from $21,962 million at year-end 2024, aided by a March 2025 common stock offering that raised about $1.3 billion, and the common equity ratio improved to 49.2% from 47.1%. Short-term borrowing fell sharply, with commercial paper dropping to $552 million from $2,170 million, and operating cash flow rose to $3,320 million from $2,304 million. Capital expenditures remain heavy at about $3.5 billion for the nine months, funded largely by utility rate recovery. The most important forward-looking item is the November 5, 2025 joint proposal for CECONY's electric and gas rate plans covering 2026 through 2028. It would provide base rate increases, a 9.40% authorized ROE, a 48% common equity ratio, and roughly $4.5 billion per year of electric capital spending, subject to NYSPSC approval. Risks flagged include aged customer receivables of $1.5 billion over 60 days, an open NYSPSC investigation into gas main weld practices with no accrual, a continuing income tax regulatory asset audit of about $1.0 billion, and asbestos and manufactured-gas-plant environmental liabilities.

    Nov 6, 2025
  5. 2025-Q2

    Consolidated Edison Quarterly Report for Q2 Ended Jun 30, 2025

    Consolidated Edison's second-quarter 2025 10-Q shows a solid earnings quarter driven by utility rate base growth and a one-time comparison benefit. Q2 2025 net income for common stock rose to $246 million ($0.68 per diluted share) from $202 million ($0.58) a year earlier, and first-half net income reached $1,038 million ($2.92 diluted EPS) versus $922 million ($2.66). Operating revenues increased 12% for the quarter to $3,595 million, while operating income rose to $355 million from $320 million. Much of the earnings improvement at CECONY came from the absence of the May 2024 NYSPSC order that had forced a $51 million expense write-off for the customer billing system, along with higher electric rate base and rising pension-related other income. Taxes other than income taxes, which are largely property taxes, climbed sharply to $894 million in the quarter, a key cost pressure to watch. Balance-sheet and cash-flow developments are notable. Operating cash flow nearly rose by half to $2,816 million for the first six months, helped by a $144 million tax refund and a lower receivables build, though the company continues to carry elevated aged customer receivables ($1.53 billion at CECONY over 60 days). Con Edison raised equity in March 2025, issuing roughly $1.3 billion in common stock including a forward-sale settlement, which lifted shareholders' equity to $23.8 billion and the common equity ratio to 49.1% from 47.1%. Short-term debt was reduced by $950 million, and capital expenditures remain heavy at about $2.4 billion for the half-year, keeping pressure on financing needs. The pivotal near-term catalyst is CECONY's pending rate case, which requests electric and gas increases of $1,608 million and $349 million effective January 1, 2026, at a 10% return on equity; the NYSPSC staff testimony, however, supports only $319 million for electric and a $45 million gas decrease at a 9.30% ROE. The gap between the request and staff recommendation will heavily influence future earnings growth. Management also flagged risks including tariff-related cost increases, offshore wind project disruptions, an open NYSPSC audit regarding income tax regulatory assets, and an unquantified environmental and asbestos exposure, while the company stated there were no material changes to risk factors.

    Aug 7, 2025
  6. 2025-Q1

    Consolidated Edison Quarterly Report for Q1 Ended Mar 31, 2025

    Consolidated Edison, Inc. (Con Edison) reported first-quarter 2025 net income for common stock of $791 million, or $2.25 per diluted share, up from $720 million, or $2.08 per diluted share, in the prior-year quarter. Growth was driven mainly by CECONY, whose net income rose to $745 million from $694 million, reflecting steam and electric rate base increases and lower operations and maintenance expense, partly offset by higher stock-based compensation. Operating revenues rose 12% to $4.80 billion, though the Clean Energy Businesses sale loss of $30 million in the prior year and higher taxes other than income taxes (up $139 million, mainly property taxes) weighed on the comparison. Per-share earnings also benefited from a $22 million after-tax swing related to the Clean Energy Businesses sale adjustment. The balance sheet and cash flow picture is more mixed. Operating cash flow was $837 million, up from $573 million, but capital expenditures of $1.16 billion were largely funded by a $1.31 billion public common stock offering and $1.82 billion of net short-term debt repayment, leaving cash at $360 million versus $1.33 billion at year-end 2024. Customer accounts receivable grew to $2.75 billion, with CECONY's aged receivables over 60 days at $1.51 billion, a continuing liquidity concern management acknowledges. The common equity ratio improved to 49.1% from 47.1%, and shareholder equity rose to $23.8 billion. Regulatory and policy developments are central to the outlook. CECONY filed updated requests for electric and gas rate increases of $1.608 billion and $349 million effective January 2026, with a 10% return on equity and 48% equity ratio, and the NYSPSC decision will drive future earnings. Management also flagged risks from federal tariffs on Canadian electricity imports, April 2025 federal executive actions affecting state climate policies, and a stop-work order that suspended marine activities for the 810 MW Empire Wind 1 project. Unresolved items include the NYSPSC audit regarding income tax regulatory assets of $1.06 billion, the gas and steam weld investigation, and asbestos litigation.

    May 1, 2025
  7. 2024-Q3

    Consolidated Edison Quarterly Report for Q3 Ended Sep 30, 2024

    Consolidated Edison's Q3 2024 10-Q shows a quarter of steady regulated growth, with GAAP net income for common stock of $588 million ($1.69 diluted EPS) versus $526 million ($1.52) a year earlier. The increase was driven mainly by CECONY's higher electric rate base and steam rate plan, partly offset by higher interest expense and lower pension credits in other income. Year-to-date results are down sharply, with nine-month net income of $1,510 million ($4.35 diluted EPS) versus $2,185 million ($6.24) in 2023. That comparison is distorted by the prior year's roughly $866 million pre-tax gain on the March 2023 sale of the Clean Energy Businesses, so investors should look at utility earnings growth rather than the headline decline. Balance sheet and cash flow trends warrant attention. Operating cash flow rose to $2,304 million for the nine months, up from $1,181 million, but utility construction spending of $3,533 million exceeded that by a wide margin, and cash fell to $93 million at quarter-end. Long-term debt grew to $23,688 million (carrying amount), and the company issued $1,525 million of new long-term debt while using short-term commercial paper ($2,059 million outstanding). Customer accounts receivable are rising, with CECONY aged balances over 60 days at $1,654 million, which management says continues to pressure liquidity and may require more capital. Regulatory and legal items are material to the outlook. The NYSPSC denied CECONY's request to capitalize $89 million of excess billing-system costs, which led to a $51 million expense in the quarter and a $37 million after-tax earnings hit for the nine months. Regulatory assets tied to a federal income tax normalization issue total about $1,066 million at CECONY and are not earning a return, with the NYSPSC audit still open. Superfund and environmental exposure remains large, with about $1,101 million accrued and a Gowanus Canal remediation estimated at $369 million, and an asbestos-related reasonable possibility of loss above accrual is disclosed but not quantified.

    Nov 7, 2024
  8. 2024-Q2

    Consolidated Edison Quarterly Report for Q2 Ended Jun 30, 2024

    Consolidated Edison's second-quarter 2024 10-Q shows a quarter of lower earnings but solid underlying utility growth. Net income for common stock fell to $202 million ($0.58 diluted EPS) from $226 million ($0.65) in Q2 2023, and year-to-date net income fell to $922 million ($2.66 diluted EPS) from $1,658 million ($4.72). The comparison is distorted by the March 2023 sale of the Clean Energy Businesses, which produced an $804 million after-tax gain in the prior-year period. Excluding that gain and related items, the story is more positive: CECONY's year-to-date net income rose to $880 million from $793 million, driven by the new steam rate plan, higher electric and gas rate base, and Con Edison Transmission's earnings from its Mountain Valley Pipeline (MVP) investment, which entered service in June 2024. The quarter was pressured by a $37 million after-tax charge at CECONY tied to a NYSPSC order denying recovery of costs above the $421 million cap for its new customer billing system, and by a $51 million expense recognized in May 2024 for those costs. Other operations and maintenance expense rose 14% in the quarter, and Taxes other than income taxes rose 9%, mainly from higher property taxes. Operating cash flow improved to $1.91 billion for the first half, up from $1.16 billion, largely due to working capital changes. Capital spending remains heavy, with utility construction expenditures of $2.40 billion in the first half, funded by $1.4 billion of CECONY debentures issued in May and a rise in commercial paper to $2.45 billion. Investors should watch several open items: the NYSPSC rehearing petition on the billing system costs, a potential write-down risk on $1.1 billion of income tax regulatory assets tied to the audit of normalization practices, aged customer receivables that are slowing cash collections, the pending O&R electric and gas rate cases effective January 2025, and the $369 million EPA-estimated remedial cost for the Gowanus Canal Superfund site, for which CECONY cannot estimate its exposure. Equity-funded share repurchases were absent in 2024 after a $1 billion repurchase in the first half of 2023.

    Aug 1, 2024
  9. 2024-Q1

    Consolidated Edison Quarterly Report for Q1 Ended Mar 31, 2024

    Consolidated Edison's first quarter 2024 results were sharply lower year over year, but the decline is almost entirely explained by the prior-year gain on the March 2023 sale of the Clean Energy Businesses. Net income for common stock fell to $720 million ($2.08 per diluted share) from $1,433 million ($4.05) in Q1 2023, which included an $855 million pre-tax gain. Excluding the sale-related items, the regulated business performed well: CECONY net income rose to $694 million from $604 million, driven mainly by the new steam rate plan, higher gas and electric rate base, and a share repurchase benefit. Operating revenues were roughly flat at $4.28 billion, and CECONY's electric and steam operating income improved notably. Cash flow and liquidity merit attention. Operating cash flow improved to $573 million from $92 million, but investing outflows of $1.34 billion (mainly utility construction at $1.24 billion) and dividends of $274 million drove cash down to $169 million. Management continues to cite slower recovery of aged customer receivables, which rose to $1.36 billion at CECONY, as a drag on liquidity. Commercial paper of $2.3 billion is outstanding at a weighted average rate of 5.5 percent, reflecting higher-rate borrowing costs. Long-term debt remained stable at about $21.9 billion, and the common equity ratio improved to 49.6 percent. Looking ahead, the filing points to continued utility capital investment, pending O&R rate filings for 2025 to 2027, a clean energy transition that includes offshore wind interconnection and thermal energy network pilots, and an expected completion of the Mountain Valley Pipeline in May 2024. Investors should watch the NYSPSC's response to CECONY's customer billing system cost recovery petition ($88 million above the rate plan limit), the outcome of the income tax regulatory asset audit, and environmental and Superfund exposures that management says it cannot fully estimate.

    May 2, 2024
  10. 2023-Q3

    Consolidated Edison Quarterly Report for Q3 Ended Sep 30, 2023

    Consolidated Edison's third-quarter 2023 10-Q shows a company in transition. The sale of the Clean Energy Businesses to RWE closed on March 1, 2023 for $3,993 million, producing a pre-tax gain of $866 million ($784 million after tax) that dominates year-to-date results. Nine-month GAAP net income for common stock rose to $2,185 million ($6.27 basic EPS) from $1,470 million ($4.15) a year earlier, but excluding the gain, the utilities drove the underlying story: CECONY's nine-month net income rose to $1,308 million from $1,138 million on electric and gas rate plan increases. Third-quarter EPS fell to $1.53 basic from $1.73 as the prior-year quarter included Clean Energy earnings that no longer exist. Cash generation weakened. Operating cash flow fell to $1,181 million from $2,618 million, driven by a $634 million drop in accounts payable, lower regulatory liability balances, and higher prepayments of $841 million. Aged customer receivables remain elevated (CECONY's customer receivables over 60 days were $1,041 million versus $408 million before the pandemic), and management says slower cash recovery has affected liquidity. Capital spending remains heavy at $3,097 million in utility construction for the nine months, and the company repurchased $1,000 million of its own shares through accelerated share repurchase agreements. Short-term notes payable were reduced to $1,880 million from $2,640 million, and Con Edison raised its planned long-term utility debt issuance ceiling to $2,100 million from $1,400 million. Ongoing regulatory and contingent items deserve investor attention. CECONY's 2023-2025 electric and gas rate plans (9.25% ROE, 48% equity ratio) were approved in July 2023, and a steam joint proposal was filed in September. The Mountain Valley Pipeline is now targeting a first-quarter 2024 in-service date at a project cost of about $7.2 billion, but the carrying value of Con Edison's stake is $111 million against $530 million of cash contributed, leaving impairment risk. The NYSDPS tax-accounting audit could produce material regulatory outcomes, and asbestos and manufactured-gas-plant environmental liabilities remain large (accrued Superfund liabilities of $996 million).

    Nov 2, 2023
  11. 2023-Q2

    Consolidated Edison Quarterly Report for Q2 Ended Jun 30, 2023

    Consolidated Edison's Q2 2023 10-Q shows a quarter dominated by the completed sale of its Clean Energy Businesses to RWE on March 1, 2023 for $3,993 million. The sale produced a pre-tax gain of $867 million for the six months ($804 million after tax), which lifted six-month reported net income for common stock to $1,658 million, or $4.72 diluted EPS, versus $857 million and $2.41 a year earlier. Excluding the gain and related one-time items, the picture is much more modest: the Utilities (CECONY and O&R) delivered most of the earnings, and Q2 2023 net income for common stock fell to $226 million ($0.65 per diluted share) from $255 million ($0.72) a year earlier, as the loss of Clean Energy Businesses earnings (down $90 million) was only partly offset by utility rate increases and other items. The balance sheet and capital allocation changed meaningfully. Con Edison repurchased $1,000 million of common stock through accelerated share repurchase agreements, completed in Q2 2023, and repaid parent-company debt, while total assets fell to $63.8 billion from $69.1 billion at year-end 2022 as held-for-sale assets were removed. Cash and temporary investments rose to $1,955 million, and commercial paper outstanding at Con Edison fell to $1,953 million from $2,640 million. Operating cash flow declined to $1,164 million from $1,957 million, largely because of lower regulatory liability inflows and reduced accounts payable, partly offset by slower growth in customer receivables. Investors should note that management plans to forgo common equity issuance in 2023 and 2024, and that capital requirements for 2024 and 2025 were raised modestly to $5.12 billion and $4.99 billion, driven by Propel NY Energy transmission investments. Regulatory developments were constructive, with the NYSPSC approving CECONY's 2023-2025 electric and gas rate plans, which provide a 9.25 percent return on equity and a 48 percent equity ratio, with rate increases phased in over three years. Key risks flagged include the Mountain Valley Pipeline (carrying value of $111 million against $530 million of cash contributions, with ongoing legal challenges and potential further impairment), a pending steam rate request of $141 million, large COVID-19 arrears-related regulatory assets, aged customer receivables, and significant asbestos and manufactured gas plant environmental liabilities.

    Aug 3, 2023
  12. 2023-Q1

    Consolidated Edison Quarterly Report for Q1 Ended Mar 31, 2023

    Consolidated Edison's first-quarter 2023 results were dominated by the one-time gain on the March 1, 2023 sale of its Clean Energy Businesses to RWE, which lifted reported GAAP net income for common stock to $1,433 million ($4.06 basic EPS) from $602 million ($1.70) a year earlier. Excluding the $791 million after-tax gain, earnings were still higher year over year, driven primarily by CECONY, whose net income rose to $604 million from $475 million on gas and electric base rate increases, lower pension-related costs and higher other income. Operating revenues rose 8.4% to $4,403 million, while operating income excluding the gain was roughly $884 million versus $799 million, reflecting higher purchased power and fuel costs that the utilities generally recover from customers. Balance sheet and cash flow changes are large and largely transaction-driven. Total assets fell to $62,804 million from $69,065 million as held-for-sale assets were removed, and cash from the $3,927 million sale proceeds was used to retire $2,629 million of short-term debt, repurchase $1,000 million of common stock through accelerated share repurchase agreements, and fund a $1,675 million capital contribution from Con Edison to CECONY. Operating cash flow was weak at $92 million versus $473 million, mainly due to lower regulatory liability inflows, lower accounts payable and higher prepayments, which investors should monitor. The company also secured a new $2,500 million credit facility, issued $500 million of 5.20% CECONY debentures due 2033, and submitted a joint proposal for three-year electric and gas rate plans through 2025 that, if approved, would add meaningful revenue growth. Key forward-looking items include NYSPSC approval of the CECONY electric and gas Joint Proposal, a pending steam rate case with a requested $141 million increase effective November 2023, the final settlement of the ASR contracts by the third quarter of 2023, the Mountain Valley Pipeline project's risk of further impairment, and possible true-up adjustments to the preliminary sale gain. Note that the filing reports only quarterly results and that the first-quarter 2023 gain should not be extrapolated into run-rate earnings.

    May 4, 2023
  13. 2022-Q3

    Consolidated Edison Quarterly Report for Q3 Ended Sep 30, 2022

    Consolidated Edison's Q3 2022 10-Q shows a quarter of solid utility earnings growth, overshadowed by a major strategic move. Net income for common stock rose to $613 million ($1.72 diluted EPS) from $538 million ($1.52) a year earlier, and nine-month results reached $1,470 million ($4.13 diluted EPS) versus $1,122 million ($3.23). Operating revenues increased 15% for the quarter to $4,165 million, driven largely by higher purchased power and gas costs passed through to customers, while CECONY's regulated electric and gas businesses drove most of the earnings gain. The nine-month comparison is also flattered by a 2021 $211 million pre-tax impairment on the Stagecoach investment, which does not recur in 2022. The headline item is the October 1, 2022 agreement to sell the Clean Energy Businesses to RWE Renewables Americas for $6,800 million, subject to closing adjustments, with closing expected in the first half of 2023. Con Edison plans to use proceeds to repay $1,050 million of parent-company debt, invest in the utilities, and potentially launch a share repurchase program, and it intends to forgo common equity issuances in 2022 and 2023. The Clean Energy Businesses were classified as held for sale as of October 1, 2022, and the company expects a $100 million to $140 million deferred tax charge in Q4 2022 along with $35 million to $45 million of after-tax transaction costs. Investors should also weigh the regulatory and balance-sheet picture. CECONY's pending January 2023 rate requests (electric $1,038 million and gas $402 million, as revised) are well above the staff-supported levels ($278 million and $164 million), so the final NYSPSC outcome will matter materially for future earnings. Short-term debt rose sharply, with commercial paper at $1,941 million at a 3.4% weighted average rate, and operating cash flow improved to $2,618 million from $1,712 million. Ongoing risks include the Mountain Valley Pipeline investment, which faces further delays and possible impairment, and the large asbestos and manufactured gas plant environmental liabilities.

    Nov 3, 2022
  14. 2022-Q2

    Consolidated Edison Quarterly Report for Q2 Ended Jun 30, 2022

    Consolidated Edison's Q2 2022 10-Q shows a quarter with stronger reported earnings, driven largely by non-recurring-type swings in the Clean Energy Businesses and the absence of the 2021 Stagecoach impairment. Consolidated net income for common stock was $255 million ($0.72 per diluted share) for the three months ended June 30, 2022, versus $165 million ($0.48) a year earlier. For the six months, net income for common stock rose to $857 million ($2.41 diluted) from $584 million ($1.70). Revenue grew about 15% in the quarter to $3,415 million, led by higher electric and gas prices passed through to customers. The 2021 comparison was depressed by a $211 million pre-tax Stagecoach impairment at Con Edison Transmission, so much of the year-over-year improvement is a base effect rather than operating growth. Operating income actually fell 7% in the quarter to $387 million, and CECONY's electric operating income declined, which investors should weigh against the headline EPS gain. Balance sheet and liquidity indicators point to heavier short-term borrowing. Notes payable at Con Edison rose to $2,244 million from $1,488 million at year-end 2021, and the company took a $400 million 364-day term loan in June 2022. Operating cash flow improved to $1,957 million for the first half from $1,393 million, mainly from higher regulatory liabilities and accounts payable. Capital spending remained large, with utility construction expenditures of $1,828 million in the first half. Common equity ratio at Con Edison increased to 48.0% from 47.4%, and the company continued to pay its quarterly dividend of $0.79 per share. The filing also flags several forward-looking items of significance. CECONY's pending January 2023 electric and gas rate requests total $1,440 million, but the NYSDPS testimony supports only $442 million, a large gap that will shape future earnings. Con Edison is considering strategic alternatives for the Clean Energy Businesses, which could change the company's portfolio. The Mountain Valley Pipeline investment has been further impaired in prior periods and faces ongoing permitting risk, with CET Gas's carrying value at $111 million. Rising commodity prices are also slowing customer receivable collections and increasing reserves for uncollectible accounts.

    Aug 4, 2022
  15. 2022-Q1

    Consolidated Edison Quarterly Report for Q1 Ended Mar 31, 2022

    Consolidated Edison's first-quarter 2022 results show a clear earnings improvement: net income for common stock rose to $602 million, or $1.70 per diluted share, versus $419 million, or $1.22, in Q1 2021. The increase is largely explained by the absence of the 2021 $172 million pre-tax (about $120 million after-tax) Stagecoach impairment at Con Edison Transmission, plus higher HLBV tax-equity effects and stronger wholesale results at the Clean Energy Businesses (CEB). CECONY, the core regulated utility, earned $475 million, roughly flat year over year, and its per-share contribution slipped slightly due to share dilution from stock issuances. Operating income fell 7% to $799 million, pressured by higher other operations and maintenance expense (pension reconciliation, assessments) and taxes other than income, so the earnings gain came from non-operating items rather than core operations. Balance-sheet and cash-flow items warrant attention. Operating cash flow rose to $473 million from $289 million, helped by regulatory liability deferrals, but cash fell sharply to $197 million at quarter-end as CECONY paid New York City semi-annual property taxes in January. Customer receivables climbed to $2,176 million, and receivables over 60 days in arrears at CECONY reached $1,348 million, reflecting the lingering COVID-19 collection slowdown. Commercial paper stood at $1,313 million, and CECONY obtained a new $750 million 364-day credit facility. The common equity ratio improved to 47.7 percent. Rate matters are central to the outlook: CECONY trimmed its January 2023 electric and gas requests to $1,038 million and $402 million, respectively, and the NYSPSC approved the O&R rate plan in April. Risk remains concentrated in Con Edison Transmission's Mountain Valley Pipeline investment, which carries a $111 million carrying value after cumulative impairments; the company disclosed that the project's full in-service date now targets the second half of 2023 at a cost of about $6.6 billion, with further impairment possible. Contingencies include the manufactured gas plant Superfund liabilities (up to $2.98 billion) and asbestos suits where the Companies believe reasonable possibility of loss exceeds accruals. Management also disclosed that it is considering strategic alternatives for the Clean Energy Businesses, a potential source of future portfolio change.

    May 5, 2022
  16. 2021-Q3

    Consolidated Edison Quarterly Report for Q3 Ended Sep 30, 2021

    Consolidated Edison's Q3 2021 10-Q shows steady core utility earnings offset by a large non-cash charge at its Clean Energy and Con Edison Transmission businesses. Consolidated net income for common stock rose to $538 million ($1.52 per diluted share) in the third quarter, up from $493 million ($1.47) a year earlier, while nine-month results were $1,122 million ($3.23 diluted) versus $1,058 million ($3.16). Operating revenues increased 8% for the quarter to $3,613 million, driven by higher electric and gas revenues at CECONY and strong growth at the Clean Energy Businesses. Operating income was roughly flat at $850 million, as higher other operations and maintenance expense at the Clean Energy Businesses offset utility gains. The nine-month picture is more mixed. Con Edison Transmission recorded a $211 million pre-tax ($147 million after-tax) impairment on its 50% interest in Stagecoach Gas Services, which drove a net loss of $142 million at that segment. The impairment was partly offset by the July 2021 first-stage sale of Stagecoach for $614 million attributed to CET Gas, which also reduced investments by about $802 million and funded debt repayment. Non-controlling interest swings are significant: the tax equity investors in the Clean Energy Businesses' projects absorbed a loss of $115 million year-to-date, lifting reported earnings attributable to Con Edison. Investors should note the reduced cash balance ($66 million at September 30), the $2.7 billion year-to-date utility construction spend, and the continuing COVID-19 effects on customer receivables and uncollectible reserves, which rose sharply. Regulatory developments are also relevant. CECONY and O&R reached a July 2021 settlement with the NYSPSC resolving multiple outage and storm-related investigations, with CECONY paying $75.1 million and O&R $7.0 million. In October 2021, O&R filed a Joint Proposal for new three-year electric and gas rate plans covering 2022 through 2024, subject to Commission approval. The company also maintains a capital plan of roughly $6.1 billion for 2021, with planned long-term debt and common equity issuances to fund it.

    Nov 4, 2021
  17. 2021-Q2

    Consolidated Edison Quarterly Report for Q2 Ended Jun 30, 2021

    Consolidated Edison's second-quarter 2021 10-Q shows a mixed picture. Second-quarter net income for common stock fell to $165 million ($0.48 per diluted share) from $190 million ($0.57) a year earlier, driven primarily by a $39 million pre-tax impairment on the Stagecoach pipeline joint venture and a $53 million non-controlling interest loss from a tax equity arrangement. For the six months, net income for common stock rose modestly to $584 million ($1.70 per share) from $565 million ($1.69), as Clean Energy Businesses earnings improved sharply, offsetting a $211 million pre-tax Stagecoach impairment recorded in the first half. CECONY, the core regulated utility, earned $593 million for the six months, up from $558 million, with the Utilities' operations generally stable and rate plan revenues increasing. The balance sheet reflects significant capital activity. Long-term debt rose to $21.7 billion, while Con Edison issued about $775 million of common equity in June and used the proceeds to fund CECONY's capital program. Capital requirements for 2021 through 2023 were increased, reflecting approval of about $780 million for the Reliable Clean City transmission projects. Operating cash flow improved to $1,393 million from $1,180 million, though cash fell during the period as investing outflows of $2.0 billion were largely funded by debt and equity. Pandemic-related effects persist, including elevated uncollectible account reserves ($275 million at Con Edison) and uncollected late payment charges, but these are largely deferred under New York rate plans. The most notable regulatory development is the July 2021 NYSPSC settlement resolving investigations into the 2018 steam incident, the 2019 Manhattan and Brooklyn outages, and the August 2020 Tropical Storm Isaias outages. CECONY and O&R agreed to total payments of $75.1 million and $7.0 million, respectively, which had previously been accrued in large part. Investors should also note the pending completion of the Stagecoach sale (first closing in July 2021 at $1,195 million total) and the planned renewable project financings.

    Aug 5, 2021
  18. 2021-Q1

    Consolidated Edison Quarterly Report for Q1 Ended Mar 31, 2021

    Consolidated Edison's first-quarter 2021 results (three months ended March 31, 2021) show GAAP net income for common stock of $419 million, or $1.22 diluted EPS, up from $375 million, or $1.12, a year earlier. The improvement came mainly from CECONY, whose net income rose to $465 million from $406 million on higher electric and gas rate-plan revenues, and from the Clean Energy Businesses, which swung to $49 million from a $82 million loss driven by mark-to-market swings. Those gains were largely offset by a $172 million pre-tax ($120 million after-tax) goodwill impairment on Con Edison Transmission's 50% Stagecoach Gas Services investment, which pushed Con Edison Transmission to a $122 million net loss. Management states the remaining Stagecoach carrying value of $667 million was not impaired, but further write-downs are possible as the company evaluates strategic alternatives for the stake. Balance-sheet and cash-flow metrics warrant attention. Cash and temporary investments fell to $157 million (including restricted cash) from $1,436 million at year-end, as the company repaid $675 million of a term loan and paid large prepayments, including New York City property taxes. Operating cash flow fell to $289 million from $412 million, mainly due to higher customer receivables tied to COVID-19 collection delays. Capital spending remains heavy, with the company raising its 2021 capital requirement estimate to $6,015 million, and it plans $1.9 to $2.6 billion of 2021 long-term debt issuance and up to $800 million of common equity. Common equity ratio held steady at 48.3%. Management also disclosed a new $500 million 364-day term loan commitment to refinance the 2.00% debentures maturing May 2021. Regulatory and legal items to monitor include the NYSPSC show-cause orders over the July 2019 Manhattan and Brooklyn outages (penalties up to $24.8 million) and Tropical Storm Isaias (penalties up to $102.3 million for CECONY and $19 million for O&R), with hearings scheduled for September 2021. The NYSPSC also approved a $780 million recovery petition for the Reliable Clean City transmission projects. New York raised its corporate franchise tax rate to 7.25% for taxpayers with income above $5 million, retroactive to January 1, 2021, though the company does not expect a material impact.

    May 6, 2021
  19. 2020-Q3

    Consolidated Edison Quarterly Report for Q3 Ended Sep 30, 2020

    Consolidated Edison's Q3 2020 10-Q shows a company whose core utility earnings were steady but whose cash position and balance sheet absorbed significant pressure. Consolidated net income for common stock was $493 million ($1.47 per diluted share) for the quarter versus $473 million ($1.42) a year earlier, and nine-month earnings were $1,058 million ($3.16 diluted) versus $1,048 million ($3.19), a near-flat result. Operating revenues fell 1% for the nine months to $9,286 million, while operating expenses fell 5%, mainly from lower pension costs and lower pass-through regulatory assessments. Utility-level results were the main driver: CECONY net income fell 1.5% for the nine months, offset by stronger Clean Energy Businesses results, which swung to $8 million from a $19 million loss, helped by lower mark-to-market losses and tax equity effects. Cash generation weakened materially. Operating cash flow dropped to $1,368 million from $1,960 million, driven by higher customer receivables tied to COVID-19 payment relief, larger pension contributions, and lower TCJA net benefit pass-backs. Capital spending remained heavy, with investing outflows of $2,984 million, so the company relied on $1,675 million of new long-term debt and $820 million of term-loan borrowings to fund its gap and its $731 million dividend. Cash fell to $314 million (including restricted cash) from $1,217 million at the start of the year. Common equity ratio was 49.3%, and the company's credit ratings remained investment grade (Baa2/BBB+/BBB+ at the holding company). Investors should weigh the stable earnings trajectory against rising leverage, the one-year $820 million term loan maturing March 2021, the COVID-19 risk factor added to the 10-Q, and pending regulatory exposures including the Tropical Storm Isaias investigation and a potential $860 million NYC peaker-retirement transmission reliability program. The filing also notes a $40 million accrual related to the 2014 Park Avenue explosion and an uncertain asbestos exposure.

    Nov 5, 2020
  20. 2020-Q2

    Consolidated Edison Quarterly Report for Q2 Ended Jun 30, 2020

    Consolidated Edison's Q2 2020 10-Q shows a company that remained profitable and kept its dividend growth intact despite the COVID-19 pandemic. For the six months ended June 30, 2020, total operating revenues fell 4.9% to $5.95 billion (from $6.26 billion), and net income for common stock declined 2% to $565 million, or $1.69 diluted EPS, versus $1.77 a year earlier. The second quarter was steadier: EPS rose to $0.57 from $0.46, driven by lower O&M expense (down $101 million, largely lower pension and regulatory assessment costs that are reconciled through rates) and a lower income tax burden, partly offset by higher depreciation and property taxes. Much of the year-to-date earnings pressure came from Clean Energy Businesses, which posted a six-month net loss of $49 million on mark-to-market losses (about $65 million after tax) and higher interest expense on swaps, while CECONY's utility earnings were essentially flat. The balance sheet and liquidity picture is the main area of attention. Total assets reached $59.1 billion, and long-term debt rose meaningfully, with CECONY issuing $1.6 billion of debentures in March. Short-term commercial paper outstanding at Con Edison was $1.8 billion at a 0.2% weighted rate, and in July the company drew an additional $820 million under a supplemental credit agreement that matures March 2021. Operating cash flow fell 23% to $1.18 billion, mainly due to higher customer receivables, COVID-related deferrals, and lower TCJA benefit flow-backs. Capital spending remains heavy, with utility construction expenditures of $1.5 billion in the first half. The common equity ratio slipped to 49.1% from 49.6%. Management highlighted several near-term risks: COVID-related revenue shortfalls and higher uncollectible accounts (allowance up to $87 million), New York's moratorium on residential disconnections through at least 2021, pending regulatory recovery of pandemic costs, Tropical Storm Isaias (August 2020) damage with costs not yet estimated, asbestos and manufactured gas plant liabilities that could be material, and the Mountain Valley Pipeline project, where costs may rise about 5% and in-service may slip to early 2021. The Clean Energy Businesses also benefited from PG&E's emergence from bankruptcy, which allowed restricted distributions to resume in July 2020.

    Aug 6, 2020
  21. 2020-Q1

    Consolidated Edison Quarterly Report for Q1 Ended Mar 31, 2020

    Consolidated Edison (Con Edison) reported first-quarter 2020 results with GAAP net income for common stock of $375 million, or $1.13 basic EPS and $1.12 diluted, down from $424 million ($1.31) in Q1 2019. The decline was driven mainly by Clean Energy Businesses, which posted a net loss of $82 million (versus a $35 million loss a year earlier), including $63 million of after-tax mark-to-market losses and higher net interest expense from unrealized losses on interest rate swaps. CECONY, the regulated utility, was roughly flat at $406 million, down modestly from $412 million, as new electric and gas rate plans from January 2020 offset higher depreciation, property taxes and steam weather impacts. Total operating revenues fell 8% to $3.23 billion, largely due to lower gas purchased-for-resale costs that pass through to customers. Balance sheet and liquidity changed meaningfully. Long-term debt rose to $19.4 billion from $18.5 billion, with total debt including current portions and notes payable climbing considerably after CECONY issued $1.6 billion of green debentures in March 2020. Cash rose to $1.4 billion, and Con Edison entered into a $750 million supplemental credit agreement in April 2020 as a precaution against COVID-19 market disruption. Management said it continued to issue commercial paper throughout the pandemic and has not drawn on the new facility. The common equity ratio declined to 48.7% from 49.6%, and Moody's lowered Con Edison's senior unsecured rating to Baa2 and CECONY's to Baa1. The COVID-19 pandemic is the dominant new risk. The utilities suspended service disconnections and late payment fees, which reduces near-term revenues, and the company added $5 million to uncollectible-account reserves. Separately, the PG&E bankruptcy remains a material overhang: about $1.04 billion of intangible assets tied to PG&E power purchase agreements and $802 million of related non-utility plant are carried on the balance sheet, and an adverse outcome could trigger material impairments. Management stated no impairment is currently required.

    May 7, 2020
  22. 2019-Q3

    Consolidated Edison Quarterly Report for Q3 Ended Sep 30, 2019

    Consolidated Edison's third-quarter 2019 10-Q shows a quarter with higher earnings and a nine-month picture that is flat to slightly down on a GAAP basis. Net income for common stock was $473 million, or $1.42 per diluted share, versus $435 million, or $1.39, a year earlier. For the nine months, net income for common stock was $1,048 million, or $3.19 per diluted share, versus $1,051 million, or $3.37. The nine-month decline reflects higher depreciation, property taxes, interest expense and O&M, partly offset by rate-plan gains at CECONY and a $0.14 per share earlier-year tax charge that did not recur. Operating revenues rose 1% for the quarter to $3,365 million and 2.5% for the nine months to $9,623 million, and operating income rose 5% and 5% respectively. The Clean Energy Businesses drove much of the growth in the quarter and the nine months through the December 2018 Sempra Solar acquisition, but that segment also carried a large increase in net interest and depreciation and posted a nine-month loss of $19 million. A new 'income attributable to non-controlling interest' line ($30 million in the quarter, $79 million for nine months) reflects a tax equity investor's share of Clean Energy earnings and will reduce net income for common stock going forward. The balance sheet shows total assets of $55.9 billion, a common equity ratio of 50.8%, and a sizable use of short-term debt repaid with new long-term issuances and a June 2019 equity forward and issuance. The most significant risk flagged for investors is the PG&E bankruptcy. About 680 MW of Con Edison Development projects sell power to PG&E under contracts that PG&E may assume or reject, and $1,012 million of related non-recourse project debt has been reclassified to current liabilities. Impairment could be material if the contracts are rejected. Regulatory items also matter: the October 2019 Joint Proposal for CECONY's 2020-2022 electric and gas rate plans is subject to NYSPSC approval, and several open investigations (the July 2019 Manhattan outage, storm response, and gas operator qualification) carry uncertain penalty exposure.

    Nov 4, 2019
  23. 2019-Q2

    Consolidated Edison Quarterly Report for Q2 Ended Jun 30, 2019

    Consolidated Edison's Q2 2019 10-Q shows a quarter with mixed results. Net income for common stock fell to $152 million ($0.46 per diluted share) from $188 million ($0.60) a year earlier, and first-half net income for common stock was $576 million ($1.77 per share) versus $616 million ($1.98). The decline is driven mainly by the Clean Energy Businesses, which swung to a $6 million loss for the quarter, reflecting higher depreciation and interest from the December 2018 Sempra Solar acquisition, a $16 million after-tax mark-to-market loss, and a $21 million after-tax income attribution to a tax equity investor. The regulated utility CECONY was stable, with net income of $152 million versus $149 million, supported by January 2019 rate plan increases that offset higher property taxes and depreciation. Balance sheet and cash flow activity was significant. Operating cash flow rose to $1,538 million from $1,040 million, largely because of the timing of pension contributions. Con Edison raised about $1.2 billion in equity through an $425 million March settlement and a $400 million June forward sale settlement, and it has 1.05 million shares remaining under a forward sale agreement. Total debt increased, with $1,972 million of long-term debt due within one year, including $1,032 million of non-recourse PG&E-related project debt reclassified after PG&E's January 2019 Chapter 11 filing. That PG&E exposure is the key risk: the Clean Energy Businesses hold 680 MW of PPAs with PG&E, and an impairment could be material if those contracts are rejected. The filing also flags pending regulatory actions. CECONY has requested electric and gas rate increases effective January 2020, with updated filings seeking 9.75% ROE and a 50% equity ratio. Contingencies include the Manhattan steam main rupture, the July 2019 west-side Manhattan outage (a $5 million revenue adjustment is expected in Q3), and the unresolved Manhattan gas explosion litigation, for which no liability has been accrued.

    Aug 1, 2019
  24. 2019-Q1

    Consolidated Edison Quarterly Report for Q1 Ended Mar 31, 2019

    Consolidated Edison's first quarter 2019 results show modest top-line growth with revenue of $3,514 million, up from $3,364 million, and net income for common stock of $424 million, or $1.31 per diluted share, versus $428 million and $1.37 a year earlier. Earnings were roughly flat as higher rate-plan revenues at CECONY and a higher depreciation and interest burden from the December 2018 Sempra Solar acquisition offset gains elsewhere. Clean Energy Businesses swung to a $35 million loss, driven by lower engineering, procurement and construction revenue and higher depreciation and interest. Net income attributable to a noncontrolling tax equity investor of $21 million was also a new drag on common earnings. The balance sheet and cash flow picture is more mixed. Operating cash flow improved sharply to $464 million from $143 million, largely due to timing of pension contributions and lower storm costs, but investing outflows of $888 million and dividends of $226 million kept the company reliant on capital markets. Con Edison issued $425 million of common stock in March to settle forward sale agreements and took on an $825 million term loan, while short-term debt was reduced by $1,131 million. The common equity ratio rose to 50.8 percent from 49.0 percent, which supports credit quality. Key risks for investors include the PG&E Chapter 11 bankruptcy, which affects roughly 680 MW of Con Edison Development projects, $1,041 million of related project debt now classified as current, and potential impairment of $1,108 million of PG&E power purchase agreement intangibles if contracts are rejected. Regulatory exposures include the pending CECONY electric and gas rate requests, the MTA subway outage cost recovery of $239 million deferred as a regulatory asset, and manufactured gas plant liabilities that could reach $2.8 billion. The company reported no material changes to risk factors and continues to project dividend growth supported by regulated utility earnings.

    May 2, 2019
  25. 2018-Q3

    Consolidated Edison Quarterly Report for Q3 Ended Sep 30, 2018

    Consolidated Edison's Q3 2018 10-Q shows a quarter with lower earnings driven by a one-time tax charge and higher costs, while the nine-month picture is modestly up. Third-quarter net income was $435 million ($1.39 diluted EPS) versus $457 million ($1.48) a year earlier, a decline of about 5%. The drop was driven primarily by a $42 million income tax expense from re-measuring deferred tax assets tied to the 2017 federal NOL carryover, $10 million in after-tax transaction costs for the pending Sempra Solar Holdings acquisition, and higher property taxes and depreciation at CECONY, partly offset by rate plan increases. For the nine months, net income rose 3% to $1,051 million ($3.37 diluted EPS vs. $3.31), supported by higher electric and gas base revenues under the rate plan, offset by the TCJA-related deferral of customer benefits. The most significant strategic item is the agreement by a Con Edison Development subsidiary to acquire Sempra Solar Holdings for $1,540 million, which adds 981 MW (AC) of operating renewable projects. The purchase is subject to regulatory approvals (FERC, DOE, HSR), and Con Edison has guaranteed the obligation. Financing plans were raised to include up to $1,165 million of common equity (including $715 million for the acquisition) and up to $825 million of project-level debt. Investors should watch execution and dilution from the equity issuance. Balance sheet and credit trends warrant attention. Long-term debt rose to $16.6 billion from $16.0 billion, and short-term notes payable increased to $1.35 billion. Operating cash flow fell 28% to $1.6 billion, mainly due to MTA power reliability costs, storm restoration, and Puerto Rico restoration costs, partly offset by TCJA net benefits. Moody's downgraded Con Edison's senior unsecured debt to Baa1 in October 2018, and the common equity ratio slipped to 50.7%. Significant contingencies remain, including the Manhattan gas explosion litigation, the Manhattan steam main rupture, March 2018 storm penalty exposure, and manufactured gas plant environmental liabilities that could reach $2.7 billion.

    Nov 1, 2018
  26. 2018-Q2

    Consolidated Edison Quarterly Report for Q2 Ended Jun 30, 2018

    Consolidated Edison's second-quarter 2018 10-Q shows steady but mixed results. For the six months ended June 30, 2018, net income rose 9.4% to $616 million ($1.98 diluted EPS vs. $1.84), and total operating revenues increased 3.4% to $6,060 million. However, operating income fell 7.5% to $1,180 million, largely because the Utilities deferred estimated Tax Cuts and Jobs Act (TCJA) net benefits as a regulatory liability ($217 million for Con Edison in the first half), which reduced revenue. The net income gain was driven mainly by a sharply lower income tax expense ($156 million vs. $330 million), reflecting the 21% federal corporate tax rate. Note that lower taxes partly offset the revenue reduction, so the earnings quality reflects a one-time tax benefit rather than operating growth. Cash flow from operations dropped 34% to $1,040 million, primarily due to storm restoration costs, MTA power reliability payments, Puerto Rico restoration costs, higher pension contributions, and lower income tax refunds. Investing outflows of $1,866 million were driven by utility construction spending of $1,602 million, while financing inflows of $903 million reflected net new long-term debt of roughly $1.0 billion and short-term borrowings. Total debt (including current portion and notes payable) rose meaningfully, and the common equity ratio declined slightly to 50.7% from 51.1%. Key risk items include the NYSPSC investigation of March 2018 storms and the July 2018 Manhattan steam main rupture (liabilities not estimable), the MTA subway power outage cost recovery (total costs $180 million, with $84 million more expected in 2018), ongoing asbestos and manufactured gas plant environmental liabilities, and pending rate proceedings at O&R. The company also continues to invest in clean energy and transmission projects, including the Mountain Valley Pipeline, whose cost estimate rose to $3.5-3.7 billion.

    Aug 2, 2018
  27. 2018-Q1

    Consolidated Edison Quarterly Report for Q1 Ended Mar 31, 2018

    Consolidated Edison's first-quarter 2018 results show net income of $428 million, or $1.38 basic EPS, up from $388 million ($1.27) a year earlier, a 10.3% increase. Growth was driven mainly by higher electric and gas base rates from the rate plans effective January 1, 2018, growth in gas customers, and a higher contribution from the Clean Energy Businesses' renewable projects and engineering, procurement and construction (EPC) work. Partly offsetting these gains were higher storm-related costs from the March 2018 Winter Storms Riley and Quinn, higher property taxes and depreciation, and a lower contribution from O&R. The lower federal corporate tax rate under the TCJA cut income tax expense by roughly half, to $117 million from $227 million, although the Utilities deferred most of the resulting benefit as a regulatory liability for customers rather than keeping it as earnings. Revenue rose 4.2% to $3,364 million, led by the Clean Energy Businesses (up $97 million to $233 million), while CECONY's electric revenue fell because of the TCJA deferral and lower purchased power costs. Operating income declined 7.0% to $755 million. Cash flow from operations fell sharply to $143 million from $448 million, reflecting MTA power reliability payments, Puerto Rico restoration costs, storm restoration spending, and higher pension contributions. Capital spending continued at a high level, and the funding gap was covered by a large increase in short-term borrowing: commercial paper rose to $1,389 million from $577 million at year-end. The common equity ratio improved to 51.5%. Investors should weigh several open items. The NYSPSC and NJBPU are investigating the March storm response and may impose penalties, and the Companies cannot estimate the potential loss. The 2014 Manhattan gas explosion litigation (about 80 suits) remains unresolved with no accrual. Asbestos exposure may exceed accrued amounts, and the Superfund manufactured gas plant liability could be material. Management also expects to finish its TCJA provisional-amount assessment by the fourth quarter of 2018, and the NYSPSC may require customer bill credits beginning October 1, 2018.

    May 3, 2018
  28. 2017-Q3

    Consolidated Edison Quarterly Report for Q3 Ended Sep 30, 2017

    Consolidated Edison's Q3 2017 10-Q shows a mixed quarter. Consolidated revenues fell 6.0% to $3,211 million and net income declined 8.0% to $457 million ($1.48 diluted EPS vs. $1.62), driven mainly by the September 2016 sale of the Clean Energy Businesses' retail electric supply business, which removed about $256 million of quarterly retail electric revenue and a $104 million one-time gain from the prior-year comparison. Excluding that comparison effect, the regulated utilities performed steadily: CECONY net income rose 3.4% to $401 million, supported by its new electric rate plan, higher gas base revenues, and customer growth, partly offset by higher depreciation, property taxes and income taxes. Clean Energy Businesses net income fell to $26 million from $78 million. Nine-month results were more resilient: net income was $1,020 million versus $1,039 million, and diluted EPS was $3.31 versus $3.46. Operating cash flow of $2,227 million was $109 million lower, mainly on higher cash taxes, while utility construction spending of $2,148 million continued at a high level. The company issued $343 million of common equity in August and $997 million of long-term debt through the period, while 2017 dividends declared rose to $2.07 per share from $2.01. The common equity ratio improved to 50.8% from 49.3%, and CECONY's Newtown Creek Superfund exposure and the MTA subway outage investigation remain open, with the company unable to estimate potential costs for either. For investors, the key takeaways are the stable, rate-base-driven utility earnings, the rising dividend and strengthening equity ratio, and the regulatory and environmental contingencies that could affect future cash flows. The quarter's headline decline is largely a function of the prior-year divestiture and the lower-margin renewable and energy services business rather than deterioration in the core utilities.

    Nov 2, 2017
  29. 2017-Q2

    Consolidated Edison Quarterly Report for Q2 Ended Jun 30, 2017

    Consolidated Edison's Q2 2017 10-Q shows a quarter that was weaker on the bottom line, driven mainly by the sale of its retail electric supply business and the absence of prior-year mark-to-market gains at Clean Energy Businesses. Con Edison net income fell 24.6% to $175 million ($0.57 diluted EPS) from $232 million ($0.77) in Q2 2016, while total operating revenues declined 5.8% to $2,633 million. For the six months, net income rose 3.9% to $563 million ($1.84 diluted EPS vs. $1.82), supported by utility earnings growth and Con Edison Transmission income, though the Clean Energy Businesses' earnings declined. The regulated utilities remain the core of the story. CECONY's net income was $143 million in Q2 (down from $161 million) and $482 million for the first half (up from $472 million), with rate plan changes, lower pension costs and higher property taxes shaping results. Capital spending stayed heavy, with utility construction expenditures of $1,425 million in the first half, and the balance sheet reflects total assets of $49.1 billion and a common equity ratio of 49.6%, up from 49.3% at year-end 2016. Management also disclosed a New York PSC order tied to an April 2017 MTA subway power outage that may lead to a prudence review, with no estimate of possible costs. For investors, the key takeaways are steady utility-driven earnings growth on a year-to-date basis, a softer quarter due to the 2016 divestiture and lower Clean Energy mark-to-market gains, a solid financing position with debt issuances and a prepaid term loan, and a set of open liabilities, including Manhattan steam main and gas explosion suits, asbestos exposure, and Superfund remediation estimates of up to $2.8 billion for Con Edison's manufactured gas plant sites.

    Aug 3, 2017
  30. 2017-Q1

    Consolidated Edison Quarterly Report for Q1 Ended Mar 31, 2017

    Consolidated Edison's first quarter 2017 results show net income of $388 million, or $1.27 per diluted share, up from $310 million, or $1.05, in the prior year period, a 25% increase. Operating revenues rose 2.3% to $3.228 billion. The bulk of the improvement came from CECONY's regulated utility business, where net income rose $29 million on higher electric, gas and steam rate-plan revenues, and from the Clean Energy Businesses, which swung to $7 million of net income from a $30 million loss a year earlier. The prior-year Clean Energy results were depressed by mark-to-market losses and by the retail electric supply business that Con Edison sold in September 2016. Investors should note that the quarter's comparison is partly flattered by these non-recurring swings, and that the effective tax rate rose to 37% from 35%. Cash generation was softer. Operating cash flow fell to $448 million from $524 million, mainly because the company received smaller income tax refunds this year, and the company is still spending heavily on infrastructure: utility construction expenditures were $714 million. Cash on hand dropped to $67 million from $776 million at year-end as the company repaid debt and funded capital work. The balance sheet was managed proactively. In March 2017 Con Edison issued $400 million of 2.00% debentures due 2020 and prepaid a $400 million variable-rate term loan that was due in 2018, and a Con Edison Development subsidiary issued $97 million of 4.45% senior notes secured by the Upton County Solar project. The common equity ratio improved slightly to 49.4%. Several legal and regulatory exposures remain significant. Manufactured gas plant remediation accruals total $746 million, and the company estimates potential liabilities of up to $2.8 billion for Con Edison. The Park Avenue gas explosion litigation (about eighty suits pending) has no accrual, and management says it cannot estimate the possible loss. Asbestos exposure may exceed accrued amounts. On the regulatory front, the New York Public Service Commission's March 2017 order begins to phase out net energy metering, which could affect distributed solar economics over time. Overall, the quarter was solid, with growth driven by regulated rate plans, but cash flow timing and open contingencies warrant continued monitoring.

    May 4, 2017
  31. 2016-Q3

    Consolidated Edison Quarterly Report for Q3 Ended Sep 30, 2016

    Consolidated Edison's third-quarter 2016 10-Q shows a quarter with higher earnings, driven largely by a $104 million pre-tax gain on the September 2016 sale of Con Edison Solutions' retail electric supply business to an Exelon subsidiary. Consolidated net income rose 16.1% to $497 million ($1.62 diluted EPS) from $428 million ($1.45) a year earlier. Excluding the gain and other one-time items, the picture is more mixed: CECONY's net income actually rose only modestly in the quarter, while nine-month consolidated net income was essentially flat at $1,039 million versus $1,017 million, and CECONY's nine-month earnings fell 8.1% on lower steam revenues, weather, and higher depreciation and property taxes. The balance sheet and cash flows reflect a heavy growth and financing cycle. Total assets grew to $47.3 billion, long-term debt rose to $13.7 billion, and investments jumped to $1.9 billion as Con Edison Transmission bought a 50% stake in Stagecoach Gas Services ($945 million) and invested in NY Transco and Mountain Valley Pipeline. Operating cash flow was $2.3 billion, but investing outflows of $3.7 billion exceeded it, so the company relied on a $702 million common equity offering in May 2016, $1.8 billion of new long-term debt, and a temporary reduction in commercial paper. Capital expenditure estimates for 2016 were raised to $6.1 billion. Regulatory developments are a key watch item. In September 2016, CECONY and the NYSPSC staff reached Joint Proposals for three-year electric and gas rate plans covering 2017 through 2019, with a 9.00% authorized return on equity and a 48% common equity ratio, pending NYSPSC approval. The filing also notes a 2016 Manhattan explosion and fire with several suits pending and no accrued liability, and a continuing reasonable possibility of asbestos-related losses above accrued amounts that the company cannot estimate.

    Nov 3, 2016
  32. 2016-Q2

    Consolidated Edison Quarterly Report for Q2 Ended Jun 30, 2016

    Consolidated Edison's second-quarter 2016 10-Q shows a mixed picture: consolidated net income rose to $232 million ($0.78 basic EPS) for the quarter, up from $219 million, while six-month net income fell 8% to $542 million ($1.83 basic EPS, versus $2.01). The quarterly improvement was driven mainly by the competitive energy businesses, whose net income rose to $72 million from $17 million, largely on $58 million of after-tax mark-to-market gains. CECONY, the core regulated utility, saw net income fall 24% to $161 million in the quarter and 16% to $472 million for the six months, reflecting higher depreciation, property taxes, and a weather-driven decline in steam revenues. Reported quarterly results therefore flatter the underlying utility earnings trend, and investors should weigh the mark-to-market contribution as non-recurring. The company significantly expanded its growth investments during the period. Con Edison Transmission acquired a 50% interest in Stagecoach Gas Services for $945 million, bought a 12.5% stake in the Mountain Valley Pipeline, and transferred transmission projects to NY Transco. Total assets rose to $47.3 billion from $45.6 billion at year-end 2015, and long-term debt climbed to $13.7 billion. Cash flow from operations improved to $1.63 billion, but investing outflows of $2.99 billion were largely financed by a $702 million common equity offering, $500 million of new debentures, and a $400 million bank credit facility. Capital requirements for 2016 were raised to $6.1 billion from $4.9 billion. Regulatory developments are a key focus. CECONY's pending electric rate request was updated to a $498 million increase for January 2017 with a 9.75% requested return on equity, while NYSPSC staff recommended only $45 million. Staff recommended a $25 million gas decrease against a requested $125 million increase. The company also agreed to sell its retail electric supply business to an Exelon subsidiary for roughly $200 million, expected to close by year-end. Pension and other contingent liabilities, including asbestos claims and the 2014 Manhattan explosion litigation, remain notable but largely unquantified risks.

    Aug 4, 2016
  33. 2016-Q1

    Consolidated Edison Quarterly Report for Q1 Ended Mar 31, 2016

    Consolidated Edison's first-quarter 2016 10-Q shows a year-over-year decline in profitability, driven mainly by an unusually warm winter that cut steam revenues and by mark-to-market losses at the competitive energy businesses. Consolidated net income fell to $310 million ($1.05 per diluted share) from $370 million ($1.26) a year earlier, a 16.2% decline. Operating revenues dropped 12.7% to $3,156 million, while operating income fell 11.6% to $642 million. CECONY, the core regulated utility, earned $310 million versus $348 million, and the competitive energy businesses swung to a $30 million loss, including $38 million of after-tax mark-to-market losses. The balance sheet and cash flow picture reflects a heavy investment program. Net cash used in investing activities rose to $1,118 million from $667 million, driven by renewable project acquisitions (Texas Solar 7, roughly $227 million) and non-utility construction. Operating cash flow was steady at $524 million, and cash on hand fell to $61 million from $944 million at year-end as the company paid down commercial paper. Long-term debt rose to $12.2 billion after a $218 million project-level bond issuance. Management raised 2016 capital requirements to $5,867 million from $4,892 million, reflecting the April 2016 agreement to buy a 50% stake in the Stagecoach gas pipeline and storage joint venture for $975 million. That deal is supported by a guarantee of up to $946 million, and the company plans roughly $500 million of new common equity and $500 million of new debt to fund it. For investors, the key trade-offs are weaker near-term earnings and a rising capital and debt load against a growth path built on regulated rate increases and contracted renewable and pipeline assets. The CECONY rate requests (about $480 million for electric and $159 million for gas effective January 2017) and the planned Stagecoach and Mountain Valley Pipeline investments are the main drivers to watch. The filing also notes uncertainty from the Manhattan explosion litigation and asbestos claims, though the company has not accrued a liability for the explosion.

    May 6, 2016
  34. 2015-Q3

    Consolidated Edison Quarterly Report for Q3 Ended Sep 30, 2015

    Consolidated Edison's third-quarter 2015 10-Q shows a steady quarter at the parent level, with net income for common stock of $428 million ($1.46 basic EPS) versus $436 million ($1.49) a year earlier, a decline of about 2%. Nine-month results were modestly higher, with net income of $1,017 million ($3.47 basic EPS) versus $1,010 million ($3.45). Revenue for the nine months fell 2.4% to $9.85 billion, driven by lower purchased power and gas costs passed through to customers, while operating income rose 3.5% to $2.03 billion. CECONY, the core regulated utility, earned $375 million in the quarter (down 6%) and $935 million year-to-date (up 3%), and it accounts for roughly 88% of consolidated assets. Under the rate plans, the company is effectively flat in 2016 on base rates, though it keeps earnings sharing and cost reconciliations in place. Balance sheet and cash flow trends are the main investor watch items. Operating cash flow improved to $2.2 billion (up $448 million), largely because income tax payments were lower after a $224 million bonus-depreciation refund. Capital spending is rising sharply, with utility construction of $1.84 billion and non-utility construction of $366 million year-to-date. Con Edison raised its 2015 competitive-business capex estimate to $835 million and its 2016 estimate to $985 million, reflecting renewable project acquisitions. Long-term debt is about $12.3 billion, with commercial paper at $1.16 billion, and the common equity ratio improved to 53.1% from 52.0%. Dividends declared rose to $0.65 per quarter, up from $0.63. Key risk items include the NYSPSC settlement of the long-running construction-overcharge proceeding, which requires a $116 million customer credit plus a $55 million return-related recovery waiver, and $100 million held as a regulatory liability. Other exposures include a pending Joint Proposal for O&R's rate plan, an Astoria/Manhattan steam and gas incident with no accrual recorded for the 2014 Park Avenue explosion, manufactured gas plant remediation liabilities (accrued $746 million, with a potential range up to $2.7 billion), and the planned sale of the retail electric supply business, which is classified as held for sale. Management reports no material changes to risk factors, and the company continues to describe itself as an industry leader in contracted solar generation.

    Nov 5, 2015
  35. 2015-Q2

    Consolidated Edison Quarterly Report for Q2 Ended Jun 30, 2015

    Consolidated Edison (Con Edison) reported a solid second quarter of 2015, with net income for common stock of $219 million, or $0.74 diluted EPS, up from $212 million and $0.72 a year earlier. For the first six months, net income rose to $589 million ($2.01 diluted EPS) from $574 million ($1.95). Operating revenues fell 4.2% in the quarter to $2,788 million, mainly because lower purchased power and gas costs passed through to customers, while operating income rose 3.7% to $472 million. The quarter's results were driven by CECONY's rate plans and higher delivery volumes from oil-to-gas conversions, offset partly by a $45 million pre-tax gain on the 2014 sale of solar projects that did not recur, a $11 million after-tax charge-off of O&R regulatory assets, and weaker competitive energy businesses earnings. Cash flow from operations improved to $1,486 million for the six months, up $229 million, largely because lower income taxes were paid. Capital spending is rising: investing cash outflows were $1,725 million, and Con Edison raised its 2015 competitive-energy capex estimate to $835 million from $375 million and its 2016 estimate to $985 million from $366 million, reflecting renewable project acquisitions. Total debt grew, with commercial paper up to $1,245 million and long-term debt to roughly $12.4 billion including current portion, and the company is retaining its dividend growth profile (quarterly dividend $0.65 vs. $0.63). Key developments include a June 2015 Joint Proposal for O&R's new electric and gas rate plans (subject to NYSPSC approval), a flat CECONY electric rate plan for 2016 with additional regulatory liability amortization, a planned sale of the retail electric supply business classified as held for sale, and continued exposure to the open CECONY steam/gas prudence proceeding (a $103 million regulatory liability and a potential refund of up to $208 million estimated by the NYSPSC consultant) and the Manhattan explosion litigation, for which no liability has been accrued.

    Aug 6, 2015
  36. 2015-Q1

    Consolidated Edison Quarterly Report for Q1 Ended Mar 31, 2015

    Consolidated Edison Inc. (ED) reported its first quarter 2015 results, showing a slight increase in net income to $370 million from $361 million in the prior year period. Diluted earnings per share remained stable at $1.26. The company's regulated utility operations, primarily CECONY, continue to be the main drivers of revenue and profit, with improvements noted in gas delivery service due to oil-to-gas conversions and lower operating expenses. While overall revenues saw a decrease driven by lower gas and electric prices, the company managed its expenses effectively. Key areas of focus include ongoing investments in utility infrastructure, particularly for grid modernization and reliability, as outlined in their capital expenditure plans. The company is also navigating regulatory developments, including the "Reforming the Energy Vision" initiative in New York. Investors should note the slight increase in net interest expense and the company's continued reliance on capital markets for funding, as highlighted in the liquidity section.

    May 7, 2015
  37. 2014-Q3

    Consolidated Edison Quarterly Report for Q3 Ended Sep 30, 2014

    Consolidated Edison's Q3 2014 10-Q shows a quarter of modest earnings decline but a strong nine-month result. Con Edison reported net income for common stock of $436 million ($1.48 diluted EPS) for the third quarter of 2014, down from $464 million ($1.58) a year earlier, a decrease of about 6%. For the nine months, net income rose to $1,010 million ($3.44 diluted EPS) from $828 million ($2.81), an increase of about 22%, helped by a $45 million pre-tax gain on the sale of solar energy projects, the absence of the 2013 LILO charge, and a 2013 tax benefit that did not recur. The third-quarter decline was driven mainly by the competitive energy businesses, which fell to $20 million from $40 million, reflecting the non-recurrence of a 2013 LILO benefit, and by higher operations and maintenance costs at CECONY tied to emergency response and healthcare. CECONY, the principal regulated utility, earned $399 million in the quarter, nearly flat year over year, and $905 million for the nine months, up from $831 million. Rate plan increases contributed meaningfully to the nine-month growth, offset partly by higher O&M and depreciation. Operating revenues for the company were $3.39 billion in the quarter (down about 3%) and $10.09 billion for the nine months (up about 6%), with gas revenues rising sharply on higher purchased gas costs and firm volume growth from oil-to-gas conversions. Balance sheet items to note include $1.4 billion of commercial paper outstanding, a common equity ratio of 53.7% at Con Edison, and cash used in operations and investing funded partly through $850 million of 30-year debentures issued by CECONY in March 2014. The company also flagged significant ongoing risk items: the New York PSC investigation into past construction overcharges (with $1.6 billion collected subject to refund and a possible additional refund of $25 million to $208 million), an eight-fatality Park Avenue gas explosion in March 2014 for which no liability has been accrued, and the pending NYPSC Reforming the Energy Vision proceeding, which could reshape utility business models.

    Nov 6, 2014
  38. 2014-Q2

    Consolidated Edison Quarterly Report for Q2 Ended Jun 30, 2014

    Consolidated Edison's second-quarter 2014 combined 10-Q shows steady core utility earnings, with net income for common stock rising to $212 million ($0.72 diluted EPS) for the quarter and $574 million ($1.95 diluted) for the six months, versus $172 million and $364 million in the prior-year periods. The six-month improvement is driven largely by rate plan increases at CECONY ($93 million favorable), a $45 million pre-tax gain on the sale of solar energy projects, and the non-recurrence of the 2013 LILO transaction charge that depressed prior-year competitive energy results. CECONY, the core regulated utility, contributed $506 million of the six-month net income, about 88% of the Con Edison total, underscoring how dependent the company remains on its New York regulated operations. Balance sheet and financing activity were routine. Total assets were $40.3 billion, long-term debt rose to $11.1 billion after CECONY issued $850 million of 30-year debentures, and the common equity ratio was 52.9%. Operating cash flow increased to $1.26 billion, though part of that increase reflects the non-recurrence of 2013 tax deposits and the company paid $518 million in income taxes in the first half. Dividends declared were $0.63 per quarter. Management also disclosed several watch items: the Manhattan steam-related and gas explosion investigations (March 2014 Park Avenue explosion killed eight people, with no accrual recorded), the NYSPSC overcharge proceeding with a potential refund range of $25 million up to roughly $208 million, and EPA's proposed Clean Power Plan, whose costs could be substantial. Overall, the filing portrays a stable, rate-base-driven utility with improving earnings, modest near-term risk from regulatory and legal contingencies, and capital spending of about $1.1 billion in the first half supporting continued rate base growth.

    Aug 7, 2014
  39. 2014-Q1

    Consolidated Edison Quarterly Report for Q1 Ended Mar 31, 2014

    Consolidated Edison, Inc. (Con Edison) reported a significant increase in net income for the first quarter of 2014 compared to the same period in 2013, driven by improvements across its utility segments and a favorable impact from the competitive energy businesses. For the three months ended March 31, 2014, Con Edison's net income for common stock reached $361 million, or $1.23 per diluted share, a substantial rise from $192 million, or $0.65 per diluted share, in the prior year's quarter. This growth was primarily fueled by higher operating revenues, particularly in the electric and gas segments, along with improved management of operating expenses. The company's core utility operations, CECONY and O&R, demonstrated strong performance. CECONY's electric operations saw a notable revenue increase driven by higher purchased power and fuel costs, while its gas operations benefited from increased sales and transportation volumes. O&R also experienced revenue growth in both its electric and gas segments. The competitive energy businesses also contributed positively, reversing a significant loss in the prior year to a profit in the current quarter, partly due to favorable mark-to-market adjustments and the resolution of LILO transactions. Overall, Con Edison's financial results indicate a strengthening operational performance and a positive outlook for the period.

    May 8, 2014
  40. 2013-Q3

    Consolidated Edison Quarterly Report for Q3 Ended Sep 30, 2013

    Consolidated Edison's Q3 2013 10-Q (filed November 4, 2013) shows a solid utility core offset by a one-time-driven swing in consolidated earnings. Con Edison's net income for common stock was $464 million ($1.58 diluted EPS) for the quarter, up 5.5% from $440 million ($1.49) a year earlier, helped by a $26 million after-tax gain from terminating a LILO lease transaction. For the nine months, net income fell to $828 million ($2.81 diluted EPS) from $931 million ($3.16), a decline of about 11%. That drop is driven mainly by a $95 million after-tax charge from the LILO transactions and by weaker competitive energy results, which swung to a $55 million loss for the nine months from $65 million of earnings in 2012. CECONY, the regulated New York utility, was steadier, earning $831 million for the nine months, up slightly from $824 million, and it accounts for most of the company's earnings base. Balance sheet and cash flow reflect heavy capital spending and pension funding. Utility construction expenditures rose to $1.70 billion in the nine months, and operating cash flow fell to $1.24 billion from $1.64 billion, mainly because of a $447 million tax deposit tied to the LILO matter (partially returned) and $867 million of pension contributions. Con Edison relied on short-term borrowing, with commercial paper rising to $1.22 billion, and issued $919 million of long-term debt. The common equity ratio held near 54%. Total assets were $41.96 billion. The most important pending item for investors is CECONY's electric, gas and steam rate case, which requested increases of $375 million (electric) and $25 million (gas) effective January 1, 2014. Staff proposed decreases, and a settlement judge has been appointed. The outcome will set the earnings trajectory for the utilities. Other risks include a NYSPSC review of past construction expenditures with a consultant estimate of $208 million in overcharges, the Superstorm Sandy cost recovery, and the Gowanus Canal Superfund remedy estimated at $506 million.

    Nov 4, 2013
  41. 2013-Q2

    Consolidated Edison Quarterly Report for Q2 Ended Jun 30, 2013

    Consolidated Edison's second quarter 2013 Form 10-Q (filed August 1, 2013, combined with CECONY) shows a mixed picture. Consolidated net income for common stock fell 19.6% to $172 million, or $0.59 per diluted share, versus $214 million ($0.73) a year earlier. For the six months, net income fell 25.9% to $364 million ($1.24 per diluted share) from $491 million ($1.67). The decline is driven largely by a $121 million after-tax charge tied to the leveraged lease in/lease out (LILO) transactions, and by $(95) million of six-month losses at the competitive energy businesses, which were hurt by lower volumes and mark-to-market effects. The regulated utility CECONY earned $153 million in the quarter, down 6.1%, reflecting rate plan changes, higher depreciation and property taxes, and higher operations costs. The LILO matter is the central event of the period. In January 2013 the Federal Circuit reversed a 2009 trial court ruling and disallowed tax losses on the 1997 LILO transaction. Con Edison recorded a $150 million after-tax charge in Q1, then in June 2013 entered a closing agreement with the IRS and terminated the 1999 LILO, producing a $29 million after-tax gain and $108 million of cash proceeds. The company deposited $447 million with tax agencies in January, of which $95 million was returned in June. Cash flow from operations fell to $973 million for the six months from $1,247 million, partly because of that deposit. Balance sheet and capital activity remained heavy. Total assets rose to $41.9 billion, and notes payable more than doubled to $1.4 billion. CECONY's commercial paper is partly pre-funding a July property tax payment. Long-term debt increased, with $700 million of new CECONY debentures issued and $919 million of Con Edison debt issued in total. Management is seeking a rate increase effective January 1, 2014, requesting electric and gas increases of $375 million and $25 million. The NYSPSC staff has recommended decreases, and the Companies face an open NYSPSC inquiry into construction expenditures that includes a $208 million overcharge estimate from a consultant. Superstorm Sandy response costs of $457 million at CECONY and $93 million at O&R are largely deferred as regulatory assets, but the NYSPSC and New York Attorney General are investigating the utilities' storm performance.

    Aug 1, 2013
  42. 2013-Q1

    Consolidated Edison Quarterly Report for Q1 Ended Mar 31, 2013

    Consolidated Edison, Inc. (Con Edison) and its subsidiary, Consolidated Edison Company of New York, Inc. (CECONY), reported lower net income for the first quarter of 2013 compared to the same period in 2012. This decline was primarily driven by a significant after-tax charge of $150 million related to Lease In/Lease Out (LILO) transactions impacting Con Edison's competitive energy businesses, as well as higher operating and maintenance expenses. Despite the decrease in net income, the core utility operations of CECONY and O&R demonstrated resilience. CECONY saw an increase in operating income driven by higher net revenues from its electric, gas, and steam segments, partly offset by increased operating expenses. The company also experienced growth in its gas delivery volumes, benefiting from weather normalization mechanisms. Investors should note the substantial regulatory assets and liabilities, particularly those related to pensions and environmental remediation, which are characteristic of regulated utility operations.

    May 2, 2013
  43. 2012-Q3

    Consolidated Edison Quarterly Report for Q3 Ended Sep 30, 2012

    Consolidated Edison's Q3 2012 10-Q (filed November 2012) shows a steady quarter driven by its regulated utilities. Con Edison reported net income for common stock of $440 million, or $1.49 per diluted share, for the three months ended September 30, 2012, up from $383 million ($1.30) a year earlier. For the nine months, net income for common stock was $931 million ($3.16 diluted), up from $860 million ($2.92). Growth came mainly from CECONY's electric rate plan, which added roughly $270 million in electric revenues over the nine months, partly offset by higher pension expense and operations and maintenance costs. Operating revenues fell because of lower purchased power and gas costs, which are passed through to customers and do not generally affect earnings. The competitive energy businesses also improved, with net income of $65 million for the nine months, helped by mark-to-market gains. Cash flow and balance sheet items require attention. Operating cash flow fell to $1,638 million from $2,161 million, mainly because of pension contributions of $787 million, up from $544 million, and higher estimated income tax payments. Investing outflows rose to $1,867 million, reflecting utility construction and the acquisition of solar projects in Alpaugh, California, for about $286 million in cash. Con Edison's common equity ratio increased to 54.6% from 52.5%. Commercial paper of $340 million was outstanding at a weighted average rate of 0.3%. The filing also notes that Hurricane Sandy, which struck in late October 2012 after the period ended, caused substantial damage to CECONY's electric distribution and steam systems. The restoration costs are not yet estimable, although most operating expenses are expected to be deferred for recovery. The main open risks are the NYSPSC proceeding on past construction expenditures, where the consultant's potential overcharge estimate is expected to be materially above the $21 million provisional figure, and the IRS dispute over LILO tax deductions, where the company has recorded no reserve against disallowances and faces potential interest of up to $122 million net of tax. The company also expects to file new CECONY electric, gas, and steam rate plans in November 2012, with new rates expected in October 2013.

    Nov 6, 2012
  44. 2012-Q2

    Consolidated Edison Quarterly Report for Q2 Ended Jun 30, 2012

    Consolidated Edison, Inc. (Con Edison) and its subsidiary CECONY reported a solid second quarter of 2012, with Con Edison's net income for common stock rising to $214 million, or $0.73 per diluted share, versus $165 million, or $0.56, in the prior-year quarter. For the six months ended June 30, 2012, net income for common stock was $491 million ($1.67 diluted) compared with $477 million ($1.62) in 2011. The improvement was driven mainly by new rate plans at CECONY, including the electric rate plan, which added $85 million to electric revenues in the quarter, and by a $36 million after-tax mark-to-market gain at the competitive energy businesses. These gains were partly offset by higher operations and maintenance expense, largely from pension costs, and by the milder winter, which reduced steam revenues. Cash and balance-sheet positions strengthened during the period. Cash rose to $1.381 billion from $648 million at year-end 2011, largely because CECONY issued $400 million of 4.20% 30-year debentures in March and CECONY issued $800 million of commercial paper, which is recorded as notes payable, in June ahead of a July property tax payment of $603 million and a $300 million debenture maturity. CECONY also redeemed $239 million of preferred stock in May. Common equity ratio improved to 54.1% from 52.5%. Net cash from operations fell to $1.247 billion from $1.589 billion, reflecting higher estimated income tax payments and higher collateral posted to counterparties. Investors should note several items: a 26-day work stoppage at CECONY ended in July 2012 with a four-year labor agreement pending ratification; O&R's New York electric rate plan was approved in June 2012; CECONY plans to file new electric, gas and steam rate plans in November 2012; and Con Edison raised its 2012 competitive-business capital expenditure estimate from $119 million to about $450 million following the July purchase of a solar developer. Ongoing contingencies include manufactured gas plant liabilities of $469 million at Con Edison, a NYSPSC expenditure prudence proceeding with $959 million collected subject to potential refund, and IRS challenges to LILO lease deductions, where a reversal could cause a material charge to earnings.

    Aug 2, 2012
  45. 2012-Q1

    Consolidated Edison Quarterly Report for Q1 Ended Mar 31, 2012

    Consolidated Edison, Inc. (Con Edison) and its subsidiary, Consolidated Edison Company of New York, Inc. (CECONY), reported a decrease in net income for the first quarter of 2012 compared to the same period in 2011. This decline was primarily driven by lower revenues from the competitive energy businesses, particularly Con Edison Solutions, which experienced mark-to-market losses and reduced sales volumes. The regulated utility segments, CECONY and Orange and Rockland Utilities (O&R), showed mixed results with CECONY's electric operations seeing an increase in operating income due to rate adjustments, while its gas and steam operations experienced lower revenues. O&R's electric segment also saw a slight decrease in operating income. Despite the overall decrease in net income, the company maintained a strong liquidity position, with Con Edison's cash and temporary cash investments increasing significantly by the end of the quarter. Investing activities saw increased utility construction expenditures, while financing activities were influenced by CECONY's issuance of new long-term debt. The company's financial health remains underpinned by its regulated utility operations and the ongoing implementation of rate plans designed to recover operating costs and ensure a reasonable return.

    May 3, 2012
  46. 2011-Q3

    Consolidated Edison Quarterly Report for Q3 Ended Sep 30, 2011

    Consolidated Edison, Inc. (Con Edison) and its utility subsidiary Consolidated Edison Company of New York (CECONY) reported third-quarter 2011 results in this combined Form 10-Q. Con Edison's net income for common stock rose to $383 million, or $1.30 per diluted share, for the three months ended September 30, 2011, up from $350 million, or $1.23 per diluted share, a year earlier. For the nine months, net income for common stock was $860 million, or $2.92 per diluted share, versus $759 million, or $2.68, in 2010. Growth was driven mainly by new electric rate plan revenues at CECONY, which more than offset higher pension, health insurance, property tax, and depreciation costs. Competitive energy businesses also improved, benefiting from favorable mark-to-market effects, though their earnings excluding mark-to-market were weaker. Cash generation strengthened materially. Operating cash flow for the nine months was $2,161 million, about $1,187 million higher than in 2010, reflecting lower income tax payments, tax refunds, and reduced collateral postings to counterparties. Investing outflows were largely steady at $1,611 million, and the Utilities indicated they do not expect to issue long-term debt in the remainder of 2011. Shareholders' equity rose to $11,667 million, and the common equity ratio increased to 52.0 percent from 50.4 percent. The company also entered into a new $2.25 billion revolving Credit Agreement in October 2011, extending to 2016 and replacing the prior facility. Key risks flagged include the substantial unfunded pension and other postretirement liabilities, the potential for a large LILO tax-deduction repayment with interest of up to $86 million net of tax, open Superfund and manufactured gas plant liabilities (estimated potential liability up to $1.9 billion for CECONY), ongoing NYPSC scrutiny of CECONY expenditures tied to a vendor kickback investigation, and a newly added cyber attack risk factor. Pending rate requests from O&R for 2012 and multi-year rate plan proposals are also significant items to monitor.

    Nov 3, 2011
  47. 2011-Q2

    Consolidated Edison Quarterly Report for Q2 Ended Jun 30, 2011

    Consolidated Edison's Q2 2011 combined 10-Q shows net income for common stock of $165 million ($0.56 diluted EPS) for the quarter, down about 10% from $183 million ($0.64) a year earlier, while six-month earnings rose 17% to $477 million ($1.62 diluted). The decline in the quarter was driven almost entirely by the competitive energy businesses, where net mark-to-market effects reduced earnings by roughly $40 million after tax versus the prior year, while the regulated utility CECONY grew earnings 16% to $157 million on higher rate-plan revenues. Management attributes the CECONY improvement to the electric and gas rate plans, partly offset by higher pension expense, property taxes and depreciation. Balance-sheet and cash-flow items were solid. Operating cash flow for the first six months roughly doubled to $1.589 billion, helped by a $149 million World Trade Center cost recovery and a federal tax refund, which together offset higher pension contributions. Capital spending of about $958 million in utility construction continued at a steady pace. The common equity ratio rose to 50.8% and total assets were $36.0 billion. Regulatory matters remain a watch item: the NYSPSC prudence proceeding has $681 million collected subject to potential refund, and the IRS continues to challenge Con Edison's LILO lease tax deductions, with $229 million of cumulative tax savings at risk plus up to $82 million of interest. For investors, the key takeaways are that core utility earnings are growing under the rate plans, that the 2011 quarterly EPS decline reflects volatile non-utility hedging results rather than the regulated franchise, and that the open NYSPSC refund proceeding, the kickback investigations and the LILO litigation are the main contingencies to monitor. The company also declared a quarterly dividend of $0.60 per share, up from $0.595.

    Aug 5, 2011
  48. 2011-Q1

    Consolidated Edison Quarterly Report for Q1 Ended Mar 31, 2011

    Consolidated Edison, Inc. (Con Edison) and its regulated utility subsidiary Consolidated Edison Company of New York (CECONY) reported first-quarter 2011 results showing strong earnings growth. Net income for common stock rose 37.6% to $311 million, or $1.07 basic and $1.06 diluted per share, versus $226 million, or $0.80, in the prior-year period. The improvement was driven mainly by the competitive energy businesses, which swung to $27 million of net income from a $28 million loss, largely due to a $22 million after-tax mark-to-market gain. CECONY contributed $268 million of net income, up 10.3%, reflecting rate plan revenue increases partly offset by higher depreciation and property taxes. Total operating revenues declined 3.3% to $3.35 billion, primarily because of lower purchased power pass-throughs and weaker competitive energy revenues, so the gain came from margin and operating-cost improvements rather than top-line growth. Balance sheet and liquidity points are mixed but manageable. Cash rose to $516 million, and operating cash flow improved sharply to $362 million from $1 million, helped by a tax refund at the parent. Total assets were $36.2 billion, and long-term debt was essentially flat at $10.7 billion. The company issued $464 million of commercial paper at a 0.3% weighted average yield, and the common equity ratio edged up to 50.8%. Pension liabilities fell to $2.66 billion after the final 2010 actuarial valuation, and the company made a $533 million discretionary pension contribution plan for 2011, of which $491 million was made in the first quarter. Investors should monitor several legal and regulatory risks. The NYSPSC continues to examine CECONY expenditures tied to employee kickback arrests, and $605 million has been collected subject to potential refund. The IRS has disallowed roughly $416 million in deductions on LILO transactions, and the company is pursuing appeals without a reserve. Environmental Superfund accruals total $511 million, and the manufactured gas plant liability could reach $1.9 billion. The Manhattan steam main rupture litigation is also pending, with the company stating that insurance should cover most costs.

    May 5, 2011
  49. 2010-Q3

    Consolidated Edison Quarterly Report for Q3 Ended Sep 30, 2010

    Consolidated Edison's Q3 2010 combined 10-Q shows a solid nine-month period: consolidated operating revenues rose 4.4% to $10.19 billion and net income for common stock increased 14.0% to $759 million ($2.69 basic EPS vs. $2.43). Growth was driven mainly by CECONY's electric rate plan, which took effect in April 2010 with a 10.15% allowed return on common equity, and the associated net revenue gains. Earnings were partly offset by higher operations and maintenance costs (demand-side management, a New York State assessment surcharge, and pension expense), higher property taxes, and depreciation tied to a growing utility plant base. The third quarter alone was weaker for the competitive energy businesses, which swung to a loss of $(3) million for the quarter because of $(22) million of after-tax mark-to-market losses. Cash flow and balance sheet items warrant attention. Operating cash flow fell to $971 million from $1,469 million, mainly because of a semi-annual New York City property tax payment timing shift and roughly $280 million of higher estimated income tax payments after the expiration of bonus depreciation. Management expects about $500 million of tax benefits over the coming months from accelerated repair deductions and the Small Business Jobs Act of 2010, and says the utilities do not expect to need additional long-term debt in 2010. Total assets grew to $35.5 billion, long-term debt rose to $10.7 billion, and commercial paper of $846 million was outstanding at a 0.4% weighted average rate. Con Edison issued 6.3 million shares in October 2010 for net proceeds of $305 million, which were invested in CECONY. The filing also flags ongoing risks. CECONY faces a NYSPSC proceeding over vendor-kickback investigations, with $464 million collected subject to potential refund and a $21 million provisional consultant assessment that the company disputes. The company is also a defendant in roughly 100 suits from the 2007 Manhattan steam main rupture, and its manufactured gas plant liabilities could reach $1.1 billion. The IRS has disallowed deductions on the LILO leases, and an adverse ruling could trigger interest of up to $73 million net of tax and possibly a material earnings charge. Fitch also lowered O&R's senior unsecured rating from A to A- in October 2010.

    Nov 1, 2010
  50. 2010-Q2

    Consolidated Edison Quarterly Report for Q2 Ended Jun 30, 2010

    Consolidated Edison, Inc. (Con Edison) reported increased net income for the second quarter and first half of 2010 compared to the same periods in 2009. This improvement was driven by favorable regulatory rate plans, particularly for CECONY's electric business, and positive performance from competitive energy businesses, which included significant mark-to-market gains. Total operating revenues saw a modest increase, reflecting growth in electric and gas services, partially offset by declines in steam and non-utility segments. While operating expenses also rose due to higher pension and post-retirement benefit costs, demand-side management programs, and property taxes, the positive impact of rate adjustments and improved results in the competitive segment led to higher overall profitability. The company maintained a stable common equity ratio and demonstrated a solid earnings-to-fixed-charges ratio, indicating a generally healthy financial position. However, investors should note the ongoing regulatory processes, environmental remediation costs, and potential liabilities from legal proceedings, which remain important considerations.

    Aug 6, 2010