10-QPeriod: Q1 FY2024

CONSOLIDATED EDISON INC Quarterly Report for Q1 Ended Mar 31, 2024

Filed May 2, 2024For Securities:ED

Summary

Consolidated Edison, Inc. (Con Edison) and its subsidiary Consolidated Edison Company of New York, Inc. (CECONY) reported solid financial results for the first quarter ended March 31, 2024. The company's core utility operations, CECONY and Orange and Rockland Utilities (O&R), demonstrated resilience, with CECONY’s electric segment seeing a notable increase in operating revenues driven by rate plan adjustments. Despite a decrease in gas and steam revenues primarily due to lower purchased gas costs and a new steam rate plan, overall profitability remained strong, supported by rate base growth and efficient operations. Con Edison Transmission is actively pursuing growth opportunities in electric transmission projects, particularly those supporting the transition to clean energy, such as the Propel NY Energy project. The company's financial position remains robust, supported by significant liquidity and access to credit facilities. While acknowledging inflationary pressures and higher interest rates impacting capital costs, Con Edison's regulatory mechanisms and forward-looking investments position it to navigate these challenges and continue pursuing its clean energy goals.

Financial Highlights

41 data points
Beta

Revenue

$4.28B

Net Income

$720.00M

16.8% Net Margin

EPS (Diluted)

$2.08

Total Assets

$66.68B

Cash & Equivalents

$169.00M

Free Cash Flow

$573.00M

Financial Statements
Beta
Revenue$4.28B
Operating Expenses$3.24B
Operating Income$1.01B
Interest Expense$289.00M
Net Income$720.00M
EPS (Basic)$2.08
EPS (Diluted)$2.08
Shares Outstanding (Basic)345.50M
Shares Outstanding (Diluted)346.80M

Key Highlights

  • 1CECONY's electric operating income increased by $46 million year-over-year, driven by higher revenues from its electric rate plan.
  • 2CECONY's gas operating income saw a significant increase of $56 million, despite a decrease in operating revenues, primarily due to lower gas purchased for resale costs.
  • 3Con Edison Transmission recognized an increase in other income, primarily due to its share of allowance for funds used during construction (AFUDC) from the Mountain Valley Pipeline (MVP) project.
  • 4The company has robust liquidity, with $104 million in cash and temporary cash investments for CECONY and $35 million for O&R at the end of the quarter.
  • 5Con Edison Transmission is advancing strategic electric transmission projects, including the Propel NY Energy project for offshore wind delivery and a joint solicitation for transmission infrastructure in New Jersey.
  • 6The company's common equity ratio remains stable, with Con Edison at 49.6% and CECONY at 48.5% as of March 31, 2024, indicating a strong capital structure.
  • 7The company is actively involved in clean energy initiatives, including the development of thermal energy network pilot projects and the recovery costs for transmission upgrades to meet New York State's climate goals.

Frequently Asked Questions

CECONY's electric operating revenues increased primarily due to an $85 million increase driven by higher revenues from the electric rate plan ($142 million), partially offset by lower purchased power and fuel expenses.

Con Edison manages interest rate risk by issuing mostly fixed-rate debt with varying maturities and opportunistic refinancing. The company estimates that a 10% increase in variable rate debt would increase annual interest expense by $14 million for Con Edison and $12 million for CECONY. Regulatory mechanisms in place help reconcile variations in variable rate tax-exempt debt interest expense.

Con Edison Transmission is progressing with several key projects. It is developing the Propel NY Energy transmission project to deliver offshore wind energy and is participating in solicitations for additional electric projects, including one for New Jersey's electric grid. The company also has investments in the Mountain Valley Pipeline (MVP) and New York Transco.

While the company has implemented regulatory mechanisms to reconcile late payment charges and write-offs of customer accounts receivable to amounts reflected in rates, a continued slower recovery in cash from these balances has impacted liquidity and may continue to do so. The utilities have resumed collection activities and write-offs.