10-QPeriod: Q2 FY2024

CONSOLIDATED EDISON INC Quarterly Report for Q2 Ended Jun 30, 2024

Filed August 1, 2024For Securities:ED

Summary

Consolidated Edison, Inc. (Con Edison) reported its financial results for the second quarter ended June 30, 2024. The company's performance was primarily driven by its regulated utility businesses, Consolidated Edison Company of New York (CECONY) and Orange and Rockland Utilities (O&R). While overall operating revenues saw an increase, net income for common stock saw a decrease compared to the prior year, largely influenced by the prior year's substantial gain from the sale of Clean Energy Businesses and other adjustments. The company continues to invest in its infrastructure and navigate the evolving energy landscape, including investments in clean energy initiatives and transmission projects. Challenges include managing aged accounts receivable balances, which have impacted liquidity, and adapting to new regulatory requirements. Despite these factors, Con Edison remains focused on providing reliable energy and continued dividend growth.

Financial Highlights

41 data points
Beta

Revenue

$3.30B

Net Income

$202.00M

6.1% Net Margin

EPS (Diluted)

$0.58

Total Assets

$67.92B

Cash & Equivalents

$1.50B

Free Cash Flow

$1.34B

Financial Statements
Beta
Revenue$3.30B
Operating Expenses$2.90B
Operating Income$320.00M
Interest Expense$288.00M
Net Income$202.00M
EPS (Basic)$0.58
EPS (Diluted)$0.58
Shares Outstanding (Basic)345.90M
Shares Outstanding (Diluted)347.10M

Key Highlights

  • 1Total operating revenues for Con Edison increased to $3,220 million for the three months ended June 30, 2024, up from $2,944 million in the prior year period.
  • 2Net income for common stock for the three months ended June 30, 2024, decreased to $202 million, or $0.58 per share, compared to $226 million, or $0.65 per share, in the same period last year. This decrease is significantly influenced by the prior year's gain on the sale of Clean Energy Businesses.
  • 3CECONY's electric operating income increased by $40 million year-over-year for the three months ended June 30, 2024, driven by higher revenues from the electric rate plan and increased purchased power expenses.
  • 4Aged accounts receivable balances remain a concern, impacting the companies' liquidity, despite resumed collection activities.
  • 5Con Edison Transmission is actively involved in developing clean energy transmission projects, including offshore wind energy delivery to New York and New Jersey.
  • 6The company is adapting to new regulatory requirements, such as the NYSPSC's amendments to customer billing and information provisions.
  • 7In June 2024, CECONY reached a four-year collective bargaining agreement with its largest union, subject to employee ratification.

Frequently Asked Questions

The decrease in net income for common stock is largely due to the absence of a significant gain from the sale of Clean Energy Businesses recorded in the prior year's six-month period. The current period reflects normal operations without this one-time gain.

While aged accounts receivable continue to impact liquidity, Con Edison has resumed collection activities, including write-offs. The company's rate plans include mechanisms to reconcile late payment charges and write-offs to amounts reflected in rates, which are recovered or refunded via surcharges or sur-credits, subject to annual caps.

Con Edison Transmission is investing in electric transmission projects like the Propel NY Energy project to deliver offshore wind energy. The company is also participating in solicitations for additional electric projects to support clean energy transitions. Furthermore, CECONY and O&R are involved in utility-scale thermal energy network pilot projects.

The IRA introduced a new 15 percent Corporate Alternative Minimum Tax (CAMT). Con Edison and CECONY were not subject to the CAMT in 2023 but will be subject to it starting in 2024. The companies are continuing to assess the full impact of the IRA and will update their estimates based on future guidance.