8-KOther Events

CONSOLIDATED EDISON INC 8-K Report, Corporate Update (Sep 27, 2010)

Filed September 27, 2010For Securities:ED

Summary

Consolidated Edison, Inc. (ED) and its subsidiary, Consolidated Edison Company of New York, Inc. (CECONY), have filed an 8-K to disclose an ongoing internal investigation. This investigation stems from the August 5, 2010 arrest of a retired employee for their alleged involvement in a bribery scheme. The employee reportedly received payments from a bidder who was subsequently awarded a contract to supply materials to CECONY. The company is cooperating with governmental authorities regarding this matter. While the investigation is in its early stages, ED and CECONY acknowledge that the full impact on internal controls, business operations, and financial position cannot yet be determined. Investors are directed to prior filings for information on related employee arrests and regulatory proceedings from January 2009.

Key Highlights

  • 1Internal investigation initiated by CECONY following the August 5, 2010 arrest of a retired employee.
  • 2The investigation concerns an alleged bribery scheme where the retired employee received payments from a supplier.
  • 3CECONY is cooperating with government authorities on their ongoing investigation.
  • 4The company is unable to predict the impact on its operations, financial position, or internal controls at this early stage.
  • 5This event is related to prior investigations and regulatory proceedings involving other employees and contractor payments disclosed in previous filings.

Frequently Asked Questions

The 8-K filing is to report the commencement of an internal investigation by Consolidated Edison Company of New York (CECONY) into an alleged bribery scheme involving a retired employee who received payments from a supplier.

At this time, the company states that it is too early in the investigation to determine the full impact on its internal controls, business, results of operations, or financial position.

Yes, CECONY has provided information to governmental authorities who are conducting their own investigation into the conspiracy to defraud the company.

Yes, the filing refers to previous arrests of other employees in January 2009 and an ongoing proceeding with the New York State Public Service Commission related to contractor payments.