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Consolidated Edison 8-K Report, Financial Results (Aug 1, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed August 1, 2024
Period End
August 1, 2024
Security
ED
In the record · 2016–202610-K1110-Q338-K143

ED filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 143 current reports (8-K) between 2016 and 2026.

  1. Leadership change8-K · Jan ’18Jan ’18
  2. Material agreement8-K · Apr ’20Apr ’20
  3. Material agreement8-K · Jun ’22Jun ’22
  4. Leadership change8-K · Jul ’26Jul ’26

01—Abstract

Summary

Summary of the 8-K filed August 1, 2024. Cited figures are marked; the original filing is the authoritative source.

Consolidated Edison reported second-quarter 2024 GAAP net income for common stock of $202 milliona, or $0.58 per share, down from $226 million, or $0.65 per share, in the prior-year quarter.

Adjusted (non-GAAP) EPS was $0.59b versus $0.61 a year earlier. The quarterly decline is driven mainly by a $37 million (about $0.11 per share) charge from the NYSPSC's May 2024 order denying CECONY's request to capitalize costs above the $421 million cap for its new customer billing system, partly offset by higher electric and gas rate base and a new steam rate plan. For the first half of 2024, GAAP EPS was $2.67 versus $4.74, but that comparison is distorted by the 2023 gain on the sale of the Clean Energy Businesses; adjusted EPS rose to $2.73 from $2.45.

Management reaffirmed 2024 adjusted EPS guidance of $5.20 to $5.40c and the 2024 to 2028 plan, which includes $28 billion of capital investment and a targeted 6.4% annual rate base growth. Investors should note the billing-system disallowance, which CECONY has petitioned to have reconsidered, as well as pending O&R rate case decisions for January 2025 that could move rate base and earnings. The company also declared an 83-cent quarterly dividend and continues to highlight its 50 consecutive years of dividend increases.

The filing is a Form 8-K furnishing the earnings press release and presentation under Item 2.02 and does not itself disclose new material transactions. Results are consistent with a regulated utility earning near its authorized returns, with growth tied to New York's electrification and clean energy transition.

02—Key points

Key Highlights

  1. Q2 2024 GAAP EPS of $0.58 (vs. $0.65 in Q2 2023); adjusted EPS of $0.59 (vs. $0.61), with adjustments for HLBV tax equity accounting.
  2. NYSPSC denied CECONY's request to capitalize billing-system costs above the $421 million cap; CECONY expensed $51 million in May 2024 and reserved $38 million at year-end 2023, costing about $0.11 per share in Q2 2024.
  3. 2024 adjusted EPS guidance of $5.20 to $5.40 reaffirmed.
  4. H1 2024 adjusted EPS of $2.73 vs. $2.45 a year earlier, up on higher steam, electric and gas rate base, partly offset by the billing-system disallowance.
  5. Capital plan of $28 billion for 2024 to 2028 with targeted 6.4% annual rate base growth; financing plan calls for no common equity issuance in 2024 beyond plan-related issuance.
  6. Quarterly dividend of 83 cents declared July 18, 2024; 50 consecutive years of dividend increases.
  7. Pending O&R electric and gas rate cases for January 2025 with NYSDPS proposing rate decreases, and NYISO offshore wind transmission solicitation (26 of 28 proposals include CECONY's Brooklyn Clean Energy Hub).

03—Questions

Frequently Asked Questions

  1. Did Con Edison meet expectations in the second quarter of 2024?

    Adjusted EPS of $0.59 was slightly below the $0.61 reported in Q2 2023. The decline came mainly from the billing-system capitalization denial, partly offset by higher rate base and a new steam rate plan. Management reaffirmed full-year guidance, which implies the company expects to recover this ground over the remaining quarters.

  2. Why did GAAP earnings fall so sharply year-to-date?

    The 2023 six-month GAAP results included a large gain on the March 2023 sale of the Clean Energy Businesses ($2.32 per share net of tax). That gain did not recur in 2024, so reported H1 EPS fell to $2.67 from $4.74. Excluding the gain and related items, adjusted EPS rose to $2.73 from $2.45.

  3. What is the impact of the NYSPSC billing-system ruling?

    CECONY's final cost for the new system was $510 million, $89 million above the $421 million cap. The commission denied recovery of costs above the cap, and CECONY expensed $51 million in May 2024 in addition to a $38 million reserve from year-end 2023. CECONY has filed for rehearing and cannot predict the outcome, so the charge may not be final.

  4. What growth does management expect going forward?

    Management plans $28 billion of capital investment from 2024 to 2028 and targets 6.4% annual average rate base growth through 2028. It expects electric volumes to grow as New York City and State phase out fossil fuels in new buildings and as customers shift to electric heating and vehicles, though CECONY lowered its forecast for firm gas demand growth.

  5. Is the dividend secure?

    Con Edison declared an 83-cent quarterly dividend and has increased its dividend for 50 consecutive years, with a targeted payout of 55% to 65% of adjusted earnings. The 2024 payout is supported by adjusted EPS of $0.59 for the quarter and $2.73 year-to-date.

04—Continue

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