8-KOther Events

CONSOLIDATED EDISON INC 8-K Report (Dec 2, 2003)

Filed December 2, 2003For Securities:ED

Summary

Consolidated Edison, Inc. (ED) and its subsidiary, Consolidated Edison Company of New York, Inc. (Con Edison of New York), announced a settlement on December 2, 2003, with the New York State Public Service Commission (PSC) staff and other parties. This settlement resolves a PSC proceeding concerning past outages at a nuclear generating unit that Con Edison of New York sold in 2001. Importantly, the agreement does not determine the prudence or imprudence of the company's past operations of the unit and is subject to PSC approval. The financial implications of this settlement are significant for Con Edison of New York. The company will refund $45.5 million to its customers and allocate $2.5 million to energy efficiency programs for low-income customers. Furthermore, Con Edison of New York will forgo the recovery of $89.5 million in replacement power costs incurred in 2000. The net impact on Consolidated Edison, Inc.'s 2003 net income is an estimated reduction of $8 million, pre-tax.

Key Highlights

  • 1Con Edison reached a settlement with the NY PSC regarding past nuclear generating unit outages.
  • 2The settlement does not involve a determination of imprudence regarding the company's past operations.
  • 3Con Edison of New York will refund $45.5 million to its customers.
  • 4An additional $2.5 million will be allocated to energy efficiency programs for low-income customers.
  • 5The company will forego recovery of $89.5 million in replacement power costs incurred in 2000.
  • 6The settlement is expected to reduce Consolidated Edison, Inc.'s 2003 net income by $8 million (pre-tax).
  • 7The settlement is subject to final approval by the PSC.

Frequently Asked Questions

The main event is the settlement reached by Consolidated Edison Company of New York, Inc. with the New York State Public Service Commission (PSC) staff and other parties concerning past outages at a nuclear generating unit that the company sold in 2001.

Con Edison of New York will refund $45.5 million to customers, fund $2.5 million in energy efficiency programs for low-income customers, and forgo the recovery of $89.5 million in replacement power costs. The overall impact on Consolidated Edison, Inc.'s 2003 net income is an $8 million pre-tax reduction.

No, the settlement explicitly states that it does not include a determination of prudence or imprudence regarding the company's operation and maintenance of the nuclear unit. This means the company is settling without admitting to improper actions.

No, the settlement is subject to approval by the New York State Public Service Commission (PSC). The filing indicates it is an agreement between the company and the PSC staff and other parties, but final regulatory approval is still required.