8-KOther Events

CONSOLIDATED EDISON INC 8-K Report (Jan 22, 2004)

Filed January 22, 2004For Securities:ED

Summary

Consolidated Edison, Inc. (Con Edison) reported its unaudited financial results for the fiscal year ended December 31, 2003, on January 22, 2004. The filing highlights a decrease in net income for common stock for the parent company and its New York utility subsidiary compared to the prior year. Several factors contributed to this decline, including reduced pension credit benefits, increased depreciation and property tax expenses, and a settlement related to a previously sold nuclear unit. Offsetting these were higher net revenues and lower operating and maintenance costs. Furthermore, the results for Con Edison and its subsidiaries were impacted by disallowances of certain purchased power costs at Orange and Rockland Utilities, Inc.'s New Jersey subsidiary. For the consolidated entity, additional negative impacts came from impairment charges on unregulated telecommunications and generating assets, reduced merchant generation margins, and costs associated with new unregulated generating units. Investors should note that the provided financial data is unaudited and subject to regulatory approval for certain items.

Key Highlights

  • 1Consolidated Edison, Inc. reported unaudited 2003 financial results on January 22, 2004.
  • 2Net income for common stock decreased for Con Edison and Consolidated Edison Company of New York in 2003 compared to 2002.
  • 3Key negative factors impacting 2003 results included reduced pension benefits, higher depreciation and property taxes, and a settlement for a sold nuclear unit.
  • 4Disallowance of certain purchased power costs for Orange and Rockland Utilities' New Jersey subsidiary negatively affected results.
  • 5Impairment charges on unregulated assets and lower merchant generation margins also contributed to the financial decline.
  • 6Net revenues saw an increase for Con Edison and its subsidiaries in 2003 compared to 2002.
  • 7The financial data presented is unaudited and furnished as part of an exhibit to the 8-K filing.

Frequently Asked Questions

The decrease in net income was due to a combination of factors, including reduced net credits for pension and other post-retirement benefits, higher depreciation and property tax expenses, a settlement related to a nuclear generating unit sold in 2001, disallowances of certain purchased power costs for O&R's New Jersey subsidiary, impairment charges on unregulated assets, lower merchant generation margins, and additional costs for new unregulated generating units.

For Con Edison and Consolidated Edison Company of New York, Inc., net income for common stock decreased in 2003 compared to 2002. Orange and Rockland Utilities, Inc. maintained the same net income for common stock at $45 million in both 2003 and 2002.

No, the financial results presented in this filing for the year ended December 31, 2003, are unaudited. They were furnished as part of a press release which is an exhibit to the 8-K and is not considered 'filed' for certain purposes under SEC regulations.

A settlement related to the nuclear generating unit sold in 2001 negatively affected the 2003 results. The exact financial impact of this settlement is not detailed but is listed as one of the reasons for the decline in net income.