8-KEarnings & ResultsOther EventsExhibits & Filings

CONSOLIDATED EDISON INC 8-K Report, Financial Results (Oct 22, 2004)

Filed October 22, 2004For Securities:ED

Summary

Consolidated Edison, Inc. (Con Edison) filed an 8-K report on October 22, 2004, detailing its financial results for the third quarter ended September 30, 2004. The report indicates a decrease in net revenues, operating income, and net income for Consolidated Edison Company of New York, Inc. (Con Edison of New York) compared to the same period in the previous year. Key factors contributing to this decline include a $24 million charge recognized for customer benefits under new gas and steam rate plans, a lower-than-normal number of hot days impacting energy demand, reduced pension and post-retirement benefit credits, and higher depreciation and property taxes. These were partially offset by increased other income and lower taxes and interest expenses. The company also updated its electric rate petition, reducing the requested increase.

Key Highlights

  • 1Con Edison reported third-quarter 2004 results showing a decline in net revenues, operating income, and net income for its New York utility subsidiary compared to Q3 2003.
  • 2A significant $24 million charge (after-tax effect of $15 million) was recognized for customer benefits related to new gas and steam rate plans approved in September 2004.
  • 3The quarter experienced a lower-than-normal number of hot days, negatively impacting seasonal energy sales.
  • 4Reduced net credits for pensions and other post-retirement benefits, alongside higher depreciation and property taxes, also contributed to the weaker results.
  • 5Offsetting factors included increased other income and decreased taxes and interest expenses on long-term debt.
  • 6Con Edison of New York has reduced its pending electric rate increase request from $550 million to $472 million, citing lower projected property tax/insurance costs and increased anticipated customer credits from transmission auctions.
  • 7The press release containing the detailed financial results for the period ending September 30, 2004, is furnished as an exhibit to the 8-K.

Frequently Asked Questions

The decline was primarily due to a $24 million charge for customer benefits under new rate plans, fewer hot days leading to lower energy demand, reduced pension credits, and higher depreciation and property taxes. These were partially offset by increases in other income and decreases in taxes and interest expenses.

Yes, Con Edison of New York has updated its pending electric rate petition, reducing the requested increase from $550 million to $472 million. This adjustment reflects lower projected property tax and insurance costs, as well as increased anticipated customer credits from transmission auctions.

The press release dated October 21, 2004, which includes summary consolidated balance sheets and income statements for the periods ended September 30, 2004 and 2003, is furnished as an exhibit to this Form 8-K. For further details on rate plans and requests, investors should refer to Note C in the company's Quarterly Report on Form 10-Q for the period ended June 30, 2004.