8-KRegulation FDOther EventsExhibits & Filings

CONSOLIDATED EDISON INC 8-K Report, Regulation FD Disclosure (May 9, 2008)

Filed May 9, 2008For Securities:ED

Summary

Consolidated Edison, Inc. (ED) has filed a significant electric rate plan proposal with the New York State Public Service Commission (PSC) on May 9, 2008. The core proposal seeks level annual electric rate increases totaling $556.7 million over three years, starting April 2009, reflecting a 10.0 percent return on common equity and a 48.0 percent common equity ratio. This filing aims to mitigate customer impact through proposed energy efficiency programs and a shift in revenue accrual timing. An alternative proposal is also presented, requesting a larger $654 million increase in April 2009, driven by higher property taxes, operating costs, infrastructure investments, and an increased return on equity. The company also seeks mechanisms to reconcile certain expenses like pensions and property taxes, deferring certain cost increases as a regulatory asset if the return on equity falls below authorized levels. The filing emphasizes the continuation of the revenue decoupling mechanism and provisions for recovering purchased power and fuel costs.

Key Highlights

  • 1Con Edison of New York filed a three-year electric rate plan proposal with the PSC on May 9, 2008.
  • 2The primary proposal requests level annual rate increases of $556.7 million for April 2009, 2010, and 2011.
  • 3The proposed rate plan assumes a 10.0% return on common equity and a 48.0% common equity ratio.
  • 4An alternative proposal seeks a $654 million increase in April 2009 to cover property taxes, operating costs, infrastructure, and a higher return on equity.
  • 5The company is proposing energy efficiency programs and a change in revenue accrual to mitigate customer impact.
  • 6Requests include reconciliation and deferral of certain expenses (pensions, property taxes, etc.) as a regulatory asset if returns are below authorized levels.
  • 7The filing confirms the continuation of the revenue decoupling mechanism and purchased power/fuel cost recovery provisions.

Frequently Asked Questions

The primary purpose of this 8-K filing is to announce that Consolidated Edison Company of New York, Inc. has submitted a proposal for an electric rate plan to the New York State Public Service Commission (PSC).

The company proposes level annual rate increases of $556.7 million for each of the three years starting April 2009, 2010, and 2011. An alternative proposal suggests a one-time increase of $654 million in April 2009.

The proposed increases are intended to cover various costs including property taxes, operating expenses, infrastructure investments, and to achieve a target return on common equity. The alternative proposal specifically breaks down the $654 million increase into $200 million for property taxes, $165 million for operating costs and programs, $230 million for infrastructure investments, and $115 million for an increased return on equity.

The revenue decoupling mechanism, which the company intends to continue, eliminates the direct link between the volume of electricity delivered and the company's profits. This means that fluctuations in customer usage won't directly impact the company's profitability, providing more stable earnings.