10-QPeriod: Q3 FY2023

CONSOLIDATED EDISON INC Quarterly Report for Q3 Ended Sep 30, 2023

Filed November 2, 2023For Securities:ED

Summary

Consolidated Edison, Inc. (Con Edison) reported a net income for common stock of $526 million ($1.53 per share) for the third quarter of 2023, compared to $613 million ($1.73 per share) in the prior year period. This decrease was primarily driven by the impact of the sale of the Clean Energy Businesses, higher interest expenses, and increased operations and maintenance activities, partially offset by electric and gas base rate increases and higher investment income. For the nine-month period, net income for common stock was $2,185 million ($6.27 per share), a significant increase from $1,470 million ($4.15 per share) in the prior year, largely due to a substantial gain from the sale of the Clean Energy Businesses. The company continues to invest in its regulated utility businesses, CECONY and O&R, focusing on reliability and clean energy goals. Despite a slight decrease in quarterly net income, the overall financial performance for the nine months remains strong, bolstered by strategic asset sales and regulatory rate adjustments. Con Edison also highlighted ongoing efforts to manage aged accounts receivable and adapt to evolving clean energy policies and climate change impacts, emphasizing resilience and sustainability.

Financial Statements
Beta
Revenue$3.85B
Operating Expenses$3.15B
Operating Income$722.00M
Interest Expense$259.00M
Net Income$526.00M
EPS (Basic)$1.53
EPS (Diluted)$1.52
Shares Outstanding (Basic)345.00M
Shares Outstanding (Diluted)346.50M

Key Highlights

  • 1Third quarter 2023 net income for common stock was $526 million ($1.53 per share), a decrease from $613 million ($1.73 per share) in Q3 2022.
  • 2Nine-month 2023 net income for common stock surged to $2,185 million ($6.27 per share) from $1,470 million ($4.15 per share) in the same period last year, largely due to the gain on the sale of Clean Energy Businesses.
  • 3The sale of substantially all assets of the Clean Energy Businesses was completed on March 1, 2023.
  • 4CECONY's electric operations saw a revenue increase of $146 million in Q3 2023 compared to Q3 2022, driven by electric base rate increases.
  • 5Con Edison Transmission is advancing the Propel NY Energy transmission project, crucial for delivering offshore wind energy.
  • 6The company is actively managing aged accounts receivable, which, despite regulatory mechanisms, has impacted liquidity.
  • 7Con Edison is investing in infrastructure to meet clean energy goals and enhance system reliability, including upgrades for offshore wind integration and climate resilience.

Frequently Asked Questions

The decrease in third quarter net income for common stock was primarily due to the impact of the sale of the Clean Energy Businesses, higher interest expenses, and increased operations and maintenance activities. These factors were partially offset by electric and gas base rate increases and higher investment income.

The sale of substantially all of the assets of the Clean Energy Businesses, completed on March 1, 2023, significantly boosted the nine-month net income for common stock due to a substantial gain recognized. However, it also impacted the year-over-year comparisons for quarterly results by removing ongoing operational revenues and profits from that segment.

Con Edison continues to invest in its core regulated utility businesses, CECONY and O&R, with a focus on reliability, resilience, and supporting clean energy goals. This includes investments in electric transmission projects like Propel NY Energy for offshore wind integration and infrastructure upgrades to meet climate resilience targets and forecasted increases in electric demand.

Con Edison is actively managing aged accounts receivable. While regulatory mechanisms are in place to reconcile write-offs and late payment charges, a continued slower recovery in cash from outstanding balances has impacted liquidity. The company has resumed collection activities, including write-offs of uncollectible balances.