10-QPeriod: Q1 FY2004

CONSOLIDATED EDISON INC Quarterly Report for Q1 Ended Mar 31, 2004

Filed May 7, 2004For Securities:ED

Summary

Consolidated Edison, Inc. (Con Edison) reported its first quarter 2004 results, showing a slight increase in net income for common stock to $155 million from $154 million in the prior year's quarter. Diluted earnings per share were $0.68, down from $0.72 in Q1 2003, primarily due to a higher average number of shares outstanding. Total operating revenues increased to $2.685 billion, driven by higher energy sales and delivery volumes across its utility segments, particularly Con Edison of New York and Orange and Rockland Utilities (O&R). The company highlighted significant capital investments planned for the coming years to meet growing customer demand and maintain reliability. Management expressed confidence in the regulated utility businesses' ability to drive earnings, while acknowledging ongoing legal proceedings and regulatory matters that could impact future financial performance.

Key Highlights

  • 1Net income for common stock increased slightly to $155 million in Q1 2004 from $154 million in Q1 2003.
  • 2Diluted EPS decreased to $0.68 from $0.72, mainly due to an increase in the average number of outstanding shares.
  • 3Total operating revenues rose to $2.685 billion, indicating growth in energy sales and deliveries.
  • 4Con Edison of New York filed a request to increase electric service charges by $550 million, effective April 2005, signaling potential future revenue growth.
  • 5Significant capital investments are planned, with Con Edison of New York estimating expenditures of $1.15 billion in 2004 and $1.411 billion in 2005 to meet rising demand and reliability needs.
  • 6The company is actively managing financial and commodity market risks through hedging strategies for energy prices and interest rates.
  • 7Several legal proceedings and regulatory matters are ongoing, including the Northeast Utilities litigation and inquiries related to an East 11th Street accident, which could materially impact financial results.

Frequently Asked Questions

For the first quarter of 2004, Con Edison reported a slight increase in net income for common stock to $155 million, up from $154 million in the same period of 2003. Diluted earnings per share were $0.68, a decrease from $0.72 in the prior year's quarter, primarily due to an increase in the average number of outstanding shares. Total operating revenues increased to $2.685 billion.

Revenue growth is driven by increased energy sales and delivery volumes across its utility segments, Con Edison of New York and Orange and Rockland Utilities (O&R). Factors such as weather, economic conditions, and growing customer demand contribute to this trend. The company also noted a rate increase request filed by Con Edison of New York for electric service.

Con Edison plans significant capital investments over the next few years to meet increasing customer demand and ensure reliability. Con Edison of New York, in particular, estimates utility construction expenditures of $1.15 billion for 2004 and $1.411 billion for 2005. The company is exploring financing options, including potential issuance of Con Edison common stock, and has registered significant amounts of debt and equity securities for sale.

Yes, Con Edison is involved in several significant legal and regulatory matters. These include the ongoing Northeast Utilities litigation, which could have a material adverse effect on financial position and results of operations. Additionally, an incident involving stray voltage in New York City has led to PSC proceedings. The company also faces potential liabilities related to environmental matters such as Superfund sites and asbestos claims.