8-KOther Events

CONSOLIDATED EDISON INC 8-K Report (Oct 16, 2003)

Filed October 16, 2003For Securities:ED

Summary

Consolidated Edison, Inc. (Con Edison) and its subsidiaries reported third-quarter 2003 financial results on October 16, 2003. For the three months ended September 30, 2003, Con Edison's net revenues increased slightly to $1.337 billion from $1.317 billion in the prior year period. However, operating income and net income for common stock saw decreases, falling to $353 million and $257 million, respectively, from $386 million and $284 million in the third quarter of 2002. The decline in profitability was attributed to several factors, including a less favorable weather pattern (fewer hot days in Q3 2003 compared to an exceptionally warm Q3 2002), increased depreciation and property tax expenses, and the impact of the August 2003 power outage. Additionally, Con Edison and its New York subsidiary experienced a reduction in net credits for pension and post-retirement benefits, while Con Edison's consolidated results were further impacted by weaker margins in wholesale electricity markets affecting sales from its unregulated generation assets.

Key Highlights

  • 1Consolidated Edison, Inc. (Con Edison) reported third-quarter 2003 net revenues of $1.337 billion, a slight increase from $1.317 billion in Q3 2002.
  • 2Despite higher net revenues, operating income for Con Edison decreased to $353 million in Q3 2003 from $386 million in Q3 2002.
  • 3Net income for common stock attributable to Con Edison also declined to $257 million in Q3 2003 from $284 million in the prior year period.
  • 4Key factors negatively impacting Q3 2003 results include less favorable weather conditions compared to Q3 2002, increased depreciation and property tax expenses, and the August 2003 power outage.
  • 5Con Edison and Consolidated Edison Company of New York saw reduced net credits for pension and other post-retirement benefits.
  • 6Con Edison's consolidated results were further pressured by weak margins in the wholesale electric markets affecting its unregulated generation assets.

Frequently Asked Questions

The decrease in net income was primarily due to a combination of factors: less favorable weather (fewer hot days compared to an unusually warm summer in 2002), higher depreciation and property tax expenses, the August 2003 power outage, reduced pension and post-retirement benefit credits for the New York utilities, and weak margins in wholesale electricity markets affecting Con Edison's unregulated generation assets.

While Consolidated Edison, Inc. as a whole saw a decrease in operating and net income, the net revenues for its subsidiary Orange and Rockland Utilities, Inc. (O&R) increased to $103 million in Q3 2003 from $95 million in Q3 2002. However, O&R's operating income and net income also decreased in the period.

The press release containing the financial results, furnished as an exhibit to this report, is considered 'furnished' and not 'filed.' This means it is not subject to the liabilities of Section 18 of the Securities Exchange Act of 1934 and will not be automatically incorporated by reference into other SEC filings.