8-KOther Events

CONSOLIDATED EDISON INC 8-K Report (Oct 18, 2001)

Filed October 18, 2001For Securities:ED

Summary

Consolidated Edison, Inc. (Con Edison) and its subsidiary Consolidated Edison Company of New York, Inc. (Con Edison of New York) filed a Form 8-K on October 18, 2001, reporting third-quarter earnings and significant events related to the September 11th attack. The filing provides unaudited net income figures for both the three and twelve months ended September 30, 2001, compared to the prior year. It also details the substantial estimated costs Con Edison of New York expects to incur due to the World Trade Center attack and the company's efforts to recover these costs. Investors should note the impact of certain charges and rate reductions on reported net income for the periods. Most critically, the report highlights the significant financial impact of the September 11th terrorist attacks on Con Edison of New York, including emergency response, restoration, and replacement costs for damaged infrastructure. The company is actively seeking insurance and federal reimbursement for these expenditures, which are largely expected to be capital in nature.

Key Highlights

  • 1Con Edison reported unaudited net income of $277 million for the three months ended September 30, 2001, compared to $280 million for the same period in 2000.
  • 2For the twelve months ended September 30, 2001, Con Edison reported net income of $603 million, down from $658 million in the prior year.
  • 3Con Edison of New York estimates incurring approximately $400 million in costs related to the September 11, 2001, World Trade Center attack.
  • 4Of the estimated $400 million in attack-related costs, approximately $65 million is expected to be covered by insurance.
  • 5Con Edison of New York is seeking Federal reimbursement for costs incurred due to the World Trade Center attack.
  • 6At September 30, 2001, $50 million in attack-related costs had been incurred by Con Edison of New York, with $12 million capitalized and $38 million deferred as a regulatory asset.
  • 7Annual net after-tax revenues of approximately $15 million were generated from buildings destroyed or severely damaged by the World Trade Center attack.

Frequently Asked Questions

Consolidated Edison, Inc. reported unaudited net income of $277 million for the three months ended September 30, 2001, compared to $280 million for the same period in 2000. Consolidated Edison Company of New York, Inc. reported $269 million for the three months ended September 30, 2001, compared to $266 million in 2000.

Con Edison of New York estimates it will incur approximately $400 million in costs for emergency response, temporary restoration, and permanent replacement of facilities damaged by the September 11, 2001, attack. Most of these costs are expected to be capital expenditures.

The company estimates that approximately $65 million of the $400 million in attack-related costs will be covered by its insurers. Con Edison of New York is also seeking Federal reimbursement for these costs.

Net income for the periods reported (three and twelve months ended September 30, 2000 and three and twelve months ended September 30, 2001) included after-tax charges for replacement power costs related to a nuclear unit outage. Additionally, net income for the three and twelve months ended September 30, 2001, reflect electric rate reductions implemented in October 2000 and April 2001.