8-KOther Events

CONSOLIDATED EDISON INC 8-K Report, Corporate Update (Oct 22, 2009)

Filed October 22, 2009For Securities:ED

Summary

Consolidated Edison, Inc. (Con Edison) filed an 8-K on October 22, 2009, to report on a favorable court decision regarding a 1997 lease-in/lease-out (LILO) tax transaction. The United States Court of Federal Claims ruled in favor of Con Edison, affirming the company's position on tax deductions related to this international energy business transaction. This decision is significant as it pertains to a specific LILO structure involving an electric generating facility in the Netherlands.

Key Highlights

  • 1Con Edison received a favorable ruling from the U.S. Court of Federal Claims concerning a 1997 LILO tax transaction.
  • 2The ruling supports Con Edison's claim for tax deductions related to the electric generating facility lease in the Netherlands.
  • 3The company has not recognized any charges to earnings or reserves related to the disallowance of tax deductions for this specific LILO transaction.
  • 4Another LILO transaction from 1999 involving gas distribution facilities in the Netherlands was not part of this litigation.
  • 5Con Edison maintains its belief that its LILO transactions have been reported correctly.
  • 6Further details on LILO transactions are available in Con Edison's June 30, 2009 10-Q filing.

Frequently Asked Questions

The main event is a favorable court decision from the United States Court of Federal Claims in favor of Consolidated Edison, Inc. regarding tax deductions for a 1997 lease-in/lease-out (LILO) transaction involving a Netherlands-based electric generating facility.

No, Con Edison states that it has not recognized any charge to earnings or recorded any reserve with respect to the disallowance of tax deductions, or related interest, in connection with this specific LILO transaction. This implies the ruling did not negatively impact their reported financials.

No, the ruling specifically addresses a 1997 LILO transaction involving an electric generating facility. A separate LILO transaction from 1999, concerning gas distribution facilities in the Netherlands, was not part of this litigation.

Additional information regarding Con Edison's LILO transactions and related proceedings can be found in 'Lease In/ Lease Out Transactions' in Note H to the financial statements in Part I, Item 1 of the company's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2009.