10-QPeriod: Q1 FY2022

CONSOLIDATED EDISON INC Quarterly Report for Q1 Ended Mar 31, 2022

Filed May 5, 2022For Securities:ED

Summary

Consolidated Edison, Inc. (Con Edison) reported solid financial performance for the first quarter of 2022, with net income for common stock increasing to $602 million, or $1.70 per share, up from $419 million, or $1.23 per share, in the prior year. This growth was primarily driven by the regulated utility operations of Consolidated Edison Company of New York (CECONY) and Orange and Rockland Utilities (O&R), which benefited from rate increases and improved operational efficiencies. The company is actively managing its diverse portfolio, including its Clean Energy Businesses and Con Edison Transmission. While Con Edison is exploring strategic alternatives for its Clean Energy Businesses, these segments contributed positively to overall earnings. The company continues to invest in infrastructure to ensure reliable and resilient energy delivery to its customers and is navigating regulatory and environmental landscapes, including ongoing rate case filings and clean energy initiatives.

Financial Highlights

42 data points
Beta

Revenue

$3.95B

Net Income

$602.00M

15.2% Net Margin

EPS (Diluted)

$1.70

Total Assets

$63.74B

Cash & Equivalents

$108.00M

Free Cash Flow

$473.00M

Financial Statements
Beta
Revenue$3.95B
Operating Expenses$3.26B
Operating Income$799.00M
Interest Expense$241.00M
Net Income$602.00M
EPS (Basic)$1.70
EPS (Diluted)$1.70
Shares Outstanding (Basic)354.10M
Shares Outstanding (Diluted)355.10M

Key Highlights

  • 1Net income for common stock increased significantly to $602 million ($1.70 EPS) in Q1 2022, compared to $419 million ($1.23 EPS) in Q1 2021, driven by strong performance in regulated utility operations.
  • 2CECONY filed updated requests for electric and gas rate increases, aiming for $1,038 million and $402 million respectively, effective January 2023, which are crucial for future earnings.
  • 3The Clean Energy Businesses reported a substantial increase in net income to $107 million ($0.30 EPS) from $49 million ($0.14 EPS), bolstered by mark-to-market effects and HLBV accounting.
  • 4Con Edison Transmission reported no net income for Q1 2022, a significant improvement from a loss of ($122 million) in Q1 2021, primarily due to the absence of a large goodwill impairment loss related to its Stagecoach investment.
  • 5The company is focused on investing in infrastructure to enhance reliability and resilience, particularly for its New York City customers, and is exploring opportunities in offshore wind energy integration.
  • 6Con Edison is managing the ongoing impacts of COVID-19, including monitoring customer account receivables and implementing new state programs to address utility arrears.
  • 7The company maintained a stable common equity ratio, with Con Edison at 47.7% and CECONY at 47.5% as of March 31, 2022.

Frequently Asked Questions

CECONY filed updated requests with the NYSPSC for electric and gas rate increases of $1,038 million and $402 million, respectively, effective January 2023. The outcome of these rate plans, subject to NYSPSC approval, will significantly impact the Companies' future financial condition and results of operations.

The Clean Energy Businesses showed strong performance in Q1 2022 with net income of $107 million. Con Edison is currently considering strategic alternatives for these businesses, and the outcome of this evaluation could impact Con Edison's future financial condition.

The increase in net income was primarily driven by higher earnings from CECONY ($10 million increase reported, driven by rate base increases and resumption of late payment charges) and a significant improvement from Con Edison Transmission (which moved from a loss to breakeven due to no impairment charges this quarter). The Clean Energy Businesses also saw a substantial rise in net income ($58 million increase), largely due to HLBV effects and mark-to-market adjustments.

Con Edison is managing increased customer accounts receivable balances and the allowance for uncollectible accounts due to the economic impact of COVID-19. The company is leveraging state programs and regulatory mechanisms to address utility arrears and expects to recover amounts through authorized programs, though the exact allocation is not yet known.