8-KOther Events

CONSOLIDATED EDISON INC 8-K Report, Corporate Update (Nov 14, 2012)

Filed November 14, 2012For Securities:ED

Summary

Consolidated Edison, Inc. (ED) filed an 8-K on November 14, 2012, detailing significant events following Hurricane Sandy. The report highlights the restoration of electric service to all customers whose equipment could accept it by its utility subsidiaries, Consolidated Edison Company of New York, Inc. (CECONY) and Orange and Rockland Utilities, Inc. (O&R). The company provided preliminary cost estimates for Hurricane Sandy and a subsequent Nor'easter, with CECONY estimating $350 million to $450 million and O&R estimating $75 million to $100 million. These figures are preliminary and do not encompass all ongoing inspection and repair costs. Furthermore, CECONY has deferred its planned electric, gas, and steam rate filings with the New York State Public Service Commission (NYSPSC) to a later date. This decision impacts the timing of potential rate adjustments, as current rate plans will remain in effect until new ones are approved. The Governor of New York has also established a commission to review utility responses to recent severe weather events, which could influence future regulatory frameworks.

Key Highlights

  • 1Electric service has been restored to all customers of CECONY and O&R who could accept service following Hurricane Sandy.
  • 2Preliminary cost estimates for Hurricane Sandy and a subsequent Nor'easter are substantial: $350M-$450M for CECONY and $75M-$100M for O&R.
  • 3These cost estimates are preliminary and do not include all expenses related to ongoing system inspection and repair.
  • 4CECONY has deferred its planned electric, gas, and steam rate filings, meaning current rates will continue until new plans are approved.
  • 5The deferral of rate filings impacts the potential timing of future rate changes for customers.
  • 6A New York State commission has been formed to review utility performance during recent emergency weather events, potentially leading to regulatory changes.

Frequently Asked Questions

Consolidated Edison Company of New York (CECONY) preliminarily estimates response and restoration costs for Hurricane Sandy and a subsequent Nor'easter to be between $350 million and $450 million. Orange and Rockland Utilities (O&R) estimates its costs to be between $75 million and $100 million. These are preliminary estimates and do not include all ongoing repair and inspection costs.

No, not immediately. CECONY has decided to defer its planned electric, gas, and steam rate filings. This means that the current rate plans will remain in effect until new rate plans are approved by the New York State Public Service Commission (NYSPSC), which could take approximately 11 months from filing.

The commission established by the Governor of New York will review how utilities managed and responded to recent emergency weather events, including Hurricane Sandy. Its recommendations could lead to changes in the oversight, management, and legal framework governing power delivery services in New York, potentially impacting Consolidated Edison's operations and regulatory environment in the future.

Yes, Consolidated Edison's utility subsidiaries, CECONY and O&R, have restored electric service to all customers whose equipment was capable of accepting service following Hurricane Sandy.