8-KOther Events

CONSOLIDATED EDISON INC 8-K Report (Apr 30, 2004)

Filed April 30, 2004For Securities:ED

Summary

Consolidated Edison, Inc. (ED) announced through its subsidiary, Consolidated Edison Company of New York, Inc. (Con Edison of New York), a significant filing with the New York State Public Service Commission (PSC). The company is requesting an increase in electric service charges amounting to $550 million, representing a 6.7% rise, with the proposed implementation effective April 2005. This filing is part of a broader strategy that includes a multi-year rate plan extending through March 2008, designed to adjust charges annually based on various cost factors like plant additions, property taxes, and pension/health expenses, while continuing current recovery mechanisms for fuel and purchased power costs. Furthermore, Con Edison is evaluating its financing plans, which could involve the issuance of common stock. This review is influenced by the ongoing rate proceedings for electric, gas, and steam services, as well as substantial projected capital expenditures exceeding $1 billion annually. The company has pre-registered significant amounts of securities, including common stock, debt, and preferred stock, under shelf registration statements to facilitate future fundraising efforts. Investors should monitor the outcome of the PSC rate case and the potential for equity dilution from stock issuance.

Key Highlights

  • 1Con Edison's subsidiary filed a request with the NY PSC to increase electric service charges by $550 million (6.7%), effective April 2005.
  • 2The filing proposes a multi-year rate plan through March 2008 with annual adjustments for plant additions, taxes, and other expenses.
  • 3The company will continue to recover fuel and purchased power costs on a current basis from customers.
  • 4Con Edison is reviewing its financing plans, which may include issuing common stock.
  • 5The financing review is influenced by current rate proceedings and significant capital expenditure plans.
  • 6Con Edison has registered $925 million of securities (debt, preferred, common stock) and Con Edison of NY has registered $825 million of debt securities for potential future sale.

Frequently Asked Questions

The primary purpose of this filing is to inform investors that Consolidated Edison Company of New York, Inc. has filed a request with the New York State Public Service Commission to increase electric service charges by $550 million, effective April 2005. It also discusses potential financing activities, including a possible stock issuance.

The proposed electric rate increase is requested to be effective starting April 2005. The filing also outlines a multi-year rate plan that would allow for adjustments in April 2006 and April 2007.

Con Edison's financing plans, which may include issuing common stock, are being influenced by the ongoing electric, gas, and steam rate proceedings, as well as projected capital expenditures exceeding $1 billion annually for its subsidiary.

No, the filing states that Con Edison and its subsidiary are 'continuing a review' of their financing plans, and an issuance of common stock 'may' occur. The review involves considering various factors and may be completed in the near term.