8-KRegulation FDOther EventsExhibits & Filings

CONSOLIDATED EDISON INC 8-K Report, Regulation FD Disclosure (Dec 2, 2004)

Filed December 2, 2004For Securities:ED

Summary

Consolidated Edison, Inc. (ED) and its subsidiary, Consolidated Edison Company of New York, Inc. (Con Edison of New York), have filed an 8-K report detailing a Joint Proposal with the New York State Public Service Commission (PSC) and other parties concerning electric delivery service rates. This proposal covers a three-year period from April 1, 2005, to March 31, 2008, and includes specific rate increases that are lower than initially projected due to the amortization of certain regulatory assets and liabilities. Key aspects of the Joint Proposal involve rate increases of $104.6 million effective April 1, 2005, and $220.4 million effective April 1, 2007. The company will also retain a portion of transmission rights auction proceeds. The agreement incorporates performance-based mechanisms for earnings sharing, deferral of certain costs (like pension, environmental, and property taxes), and potential adjustments based on operational and customer service standards. A $100 million pre-tax accounting charge is also recognized in 2004 related to prior period pension credits.

Key Highlights

  • 1Con Edison of New York has entered into a Joint Proposal with the NY PSC and other parties regarding electric delivery service rates.
  • 2The proposal covers the three-year period from April 1, 2005, through March 31, 2008.
  • 3Rate increases are planned at $104.6 million (effective April 1, 2005) and $220.4 million (effective April 1, 2007).
  • 4The company will retain the first $60 million of proceeds from transmission rights auctions annually for three years.
  • 5A significant portion of earnings above certain return thresholds will be shared with customers through deferrals.
  • 6The proposal includes mechanisms for deferring costs related to pension, environmental remediation, property taxes, and interference costs.
  • 7A $100 million pre-tax accounting charge will be recognized in 2004 to address prior period pension credit issues.

Frequently Asked Questions

The 8-K filing announces a Joint Proposal reached between Consolidated Edison Company of New York, Inc. and the New York State Public Service Commission (PSC) and other parties regarding electric delivery service rates for a three-year period.

The Joint Proposal outlines rate increases totaling $104.6 million effective April 1, 2005, and $220.4 million effective April 1, 2007. These increases are lower than they otherwise would have been due to the amortization of certain regulatory assets and liabilities, which will also result in increased recorded electric revenues for the company.

Yes, the Joint Proposal includes provisions for potential positive earnings adjustments if the company meets certain standards for retail access and demand-side management programs. Conversely, there are potential negative earnings adjustments if specific standards for service interruptions, major outages, repair times, and customer service are not met.

The $100 million pre-tax accounting charge recognized in 2004 is related to resolving issues raised in the rate proceeding, primarily concerning the accounting treatment of prior period pension credits.