8-KOther Events

CONSOLIDATED EDISON INC 8-K Report (Jul 18, 2003)

Filed July 18, 2003For Securities:ED

Summary

Consolidated Edison, Inc. (Con Edison) filed this Form 8-K on July 18, 2003, reporting its unaudited second-quarter financial results for 2003. The report highlights a decrease in net income for common stock to $66 million ($0.29 per share) from $98 million ($0.46 per share) in the same period of 2002. This decline is primarily attributed to lower electric deliveries resulting from unseasonably cool weather and a reduction in net credits for pension and other post-retirement benefits. Despite these headwinds, the company reaffirmed its full-year 2003 earnings projection, indicating confidence in its operational performance and demand for its services. Additionally, the filing details a significant regulatory decision impacting its subsidiary, Orange and Rockland Utilities, Inc. (O&R). The New Jersey Board of Public Utilities ordered a $7.2 million decrease in electric base rates for O&R's New Jersey utility, Rockland Electric Company (RECO), effective August 2003. However, RECO was authorized to recover approximately $83.4 million of previously deferred purchased power costs, partially offsetting the rate decrease. Investors should note the impact of weather, pension costs, and regulatory outcomes on near-term profitability, while also recognizing the company's reaffirmation of its annual earnings guidance.

Key Highlights

  • 1Consolidated Edison, Inc. reported a net income for common stock of $66 million ($0.29 per share) for Q2 2003, a decrease from $98 million ($0.46 per share) in Q2 2002.
  • 2The decline in quarterly earnings was attributed to lower electric deliveries due to cooler weather and reduced pension/post-retirement benefit credits.
  • 3Despite the quarterly dip, Con Edison reaffirmed its full-year 2003 earnings projection of $2.82 to $2.97 per share.
  • 4Orange and Rockland Utilities' (O&R) New Jersey subsidiary, Rockland Electric Company (RECO), will see a $7.2 million decrease in electric base rates effective August 2003 following a NJBPU ruling.
  • 5RECO was authorized to recover approximately $83.4 million of previously deferred purchased power costs and associated interest, with a disallowance of $18.6 million for which the company had fully reserved.
  • 6The company issued approximately 9.57 million shares of common stock in a public offering during Q2 2003, raising $378 million in net proceeds.
  • 7Consolidated Edison Company of New York, Inc. saw slight increases in adjusted deliveries for electricity (0.3%), gas (0.5%), and steam (1.3%) in Q2 2003 compared to Q2 2002.

Frequently Asked Questions

The decrease in net income for common stock to $66 million in Q2 2003 from $98 million in Q2 2002 was primarily due to lower electric deliveries resulting from unseasonably cool weather during the quarter and a reduction in net credits for pension and other post-retirement benefits.

The New Jersey Board of Public Utilities ordered a $7.2 million decrease in electric base rates for O&R's subsidiary, Rockland Electric Company (RECO), effective August 2003. However, RECO was allowed to recover approximately $83.4 million of deferred purchased power costs and associated interest, while $18.6 million of such costs were disallowed, for which the company had fully reserved.

No, Con Edison reaffirmed its previous forecast for full-year 2003 earnings to be in the range of $2.82 to $2.97 per share. This indicates management's confidence in its outlook despite the weather-related impact on the second quarter.

Yes, during the second quarter of 2003, Consolidated Edison, Inc. completed a public offering of common stock, issuing approximately 9.57 million shares and raising net proceeds of $378 million.