2022
Annual Report
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Con Edison Annual Report 2022
New York’s Clean Energy Vision
2025
NYS: 6 GW of private solar
NYC: 500 MW of energy storage
2030
NYS: 40% reduction in greenhouse gas emissions
(from 1990 levels)
NYS: 70% of electricity from renewable generation
NYS: 3 GW of energy storage
NYS: 10 GW of private solar
203 5
NYS: 9 GW offshore wind
NYC: City-owned vehicles to be electric models
(passenger and light, medium
and non-emergency vehicles)
NYS: All new passenger vehicles and trucks sold in
New York will be zero-emissions models
2040
2050
NYS: 100% zero-emissions electricity
NYS: 85% reduction in greenhouse gas emissions
(from 1990 levels)
How to Reach Us
How to Reach Us
Consolidated Edison, Inc.
Consolidated Edison, Inc.
4 Irving Place
4 Irving Place
New York, NY 10003
New York, NY 10003
1-212-460-4600
1-212-460-4600
conEdison.com
conEdison.com
REGULATED BUSINESSES
Consolidated Edison Company of New York, Inc.
Consolidated Edison Company of New York, Inc.
4 Irving Place
New York, NY 10003
4 Irving Place
1-212-460-4600
New York, NY 10003
conEd.com
1-212-460-4600
conEd.com
Orange and Rockland Utilities, Inc.
Orange and Rockland Utilities, Inc.
One Blue Hill Plaza
One Blue Hill Plaza
Pearl River, NY 10965
Pearl River, NY 10965
1-845-352-6000
1-845-352-6000
oru.com
oru.com
Con Edison Transmission, Inc.
Con Edison Transmission, Inc.
4 Irving Place
4 Irving Place
New York, NY 10003
New York, NY 10003
1-888-800-8712
1-888-800-8712
conEdTransmission.com
conEdTransmission.com
This annual report was printed by a printer with Forest
This annual report was printed by a printer with Forest
Stewardship Council® (FSC®) Chain of Custody certification.
The
Stewardship Council® (FSC®) Chain of Custody certification.
(FSC-CO13980) The cover and editorial sections are printed
cover and editorial sections are printed on recycled paper that
on recycled paper that contains 100% post-consumer waste,
contains 100% post-consumer waste, and the financial
and the financial section is printed on recycled paper that
section is printed on recycled paper that contains 10%
contains 10% post-consumer waste. All of these papers are
post-consumer waste. All of these papers are FSC-certified.
FSC-certified. The nonrecycled portions of these papers are
The nonrecycled portions of these papers are made from fiber
made from fiber sourced from well managed forests and other
sourced from well managed forests and other controlled wood
controlled wood sources.
sources.
Savings derived from using these papers, rather than 100%
Savings derived from using these papers, rather than 100%
virgin fiber, include:
virgin fiber, include:
106 trees preserved for the future
106 trees preserved for the future
48,047 gallons of wastewater not discharged
48,047 gallons of wastewater not discharged
3,089 pounds of solid waste not generated
3,089 pounds of solid waste not generated
8.2 pounds of hazardous air pollutants
8.2 pounds of hazardous air pollutants
not emitted
not emitted
8,419 pounds of greenhouse gases
8,419 pounds of greenhouse gases
prevented, equivalent to taking 1 car off
prevented, equivalent to taking 1 car off
the road for 1 year
the road for 1 year
Environmental impact estimates above were made
Environmental impact estimates above were made
using the Environmental Paper Network Paper Calculator.
using the Environmental Paper Network Paper Calculator.
For more information visit PaperCalculator.org.
For more information visit PaperCalculator.org.
Consolidated Edison, Inc. is one of the nation’s largest investor-owned energy-delivery companies, with approximately $16 billion in annual
Consolidated Edison, Inc. is one of the nation’s largest investor-owned energy-delivery companies, with approximately $16 billion in annual
revenues and $69 billion in assets as of December 31, 2022. The company provides a wide range of energy-related products and services to its
revenues and $69 billion in assets. The company provides a wide range of energy-related products and services to its customers through the
customers through the following subsidiaries: Consolidated Edison Company of New York, Inc. (CECONY), a regulated utility providing electric
following subsidiaries: Consolidated Edison Company of New York, Inc. (CECONY), a regulated utility providing electric service in New York City and
service in New York City and New York’s Westchester County, gas service in Manhattan, the Bronx, parts of Queens and parts of Westchester,
New York’s Westchester County, gas service in Manhattan, the Bronx, parts of Queens and parts of Westchester, and steam service in Manhattan;
and steam service in Manhattan; Orange and Rockland Utilities, Inc. (O&R), a regulated utility serving customers in a 1,300-square-mile-area in
Orange and Rockland Utilities, Inc. (O&R), a regulated utility serving customers in a 1,300-square-mile-area in southeastern New York State and
southeastern New York State and northern New Jersey; and Con Edison Transmission, Inc., which falls primarily under the oversight of the
northern New Jersey; and Con Edison Transmission, Inc., which falls primarily under the oversight of the Federal Energy Regulatory Commission
Federal Energy Regulatory Commission and through its subsidiaries invests in electric transmission projects supporting its parent company’s
and through its subsidiaries invests in electric transmission projects supporting its parent company’s effort to transition to clean, renewable energy.
effort to transition to clean, renewable energy. Con Edison Transmission manages, through joint ventures, both electric and gas assets while
Con Edison Transmission manages, through joint ventures, both electric and gas assets while seeking to develop electric transmission projects that
seeking to develop electric transmission projects that will bring clean, renewable electricity to customers, focusing on New York, New England,
will bring clean, renewable electricity to customers, focusing on New York, New England, the Mid-Atlantic states and the Midwest.
the Mid-Atlantic states and the Midwest.
Con Edison Annual Report 2022
Con Edison Annual Report 2022
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Timothy P. Cawley
Chairman, President, and
Chief Executive Officer
Dear Fellow Shareholders,
Clean energy for everyone, now and for generations to come. Our company made
strong progress on realizing that vision in 2022.
With New York’s ambitious climate goals in mind, Con Edison has built on our
foundational work of safety, operational excellence, and providing the best possible
experience for customers as we shift toward a greener future. Collectively, these
efforts yielded excellent results in 2022, positioning us for more growth in 2023 and
the years ahead.
For our customers, we continue to safely deliver world-class reliability. Our company,
now celebrating 200 years in business, powers the lives and livelihoods of 10 million
people. We keep New York City and the surrounding areas’ leading cultural,
financial, and transportation hubs running. In 2022, we made it easier for our
customers to use energy more efficiently, drive electric vehicles, and switch to
electric heating.
For our employees, we continue to prioritize safety while investing in the growth and
development of our teams. We are supporting and expanding our diversity, equity,
and inclusion efforts to build a workforce that reflects our region. Our impressive
people constantly innovate to improve everything we do.
And for you, our shareholders, we continue to provide value through steady and
adept management. Proceeds from the sale of our Clean Energy Businesses
strengthen our balance sheet and allow us to focus more sharply on delivering
service and value through our core utility businesses going forward. Our 49-year
record of dividend increases is a testament to our success. You’re seeing an
8-cent increase over 2022, to $3.24 per share.
I remain tremendously proud of our work to lead the clean energy transition, and
am confident we will continue creating a safer, cleaner, more resilient future for the
communities we serve.
8-cent dividend
increase over 2022 to
$3.24 per share
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Con Edison Annual Report 2022
200
0
National
139
Con Edison of
New York
New York
without
Con Edison of
New York
Investing in Clean Energy and Reliability
2023 - 2025 Forecasted Capital Investment: $14.6 billion
Green
Projects
$3.5
Billion
$11.1
Billion
Safety &
Reliability
The Most Reliable Service in the U.S.
1200
1000
800
600
400
200
0
Customer Interruption Rate 2021
Customers Interrupted per 1,000 Customers Served
1080
961
139
National
New York
without
Con Edison of
New York
Con Edison of
New York
Sources: PA Consulting, the New York State Public Service Commission’s Annual Electric
Reliability Report
2023 - 2025 Forecasted Capital Investment: $14.6 billion
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Green
$3.5
$11.1
Safety &
CREATE THE CLEAN ENERGY FUTURE
Our Clean Energy Commitment is our way forward. To meet the ambitious and
necessary climate goals in New York State and New York City, urgency must
underpin everything we do. Our work is expansive, from energy efficiency
programs to the electrification of buildings and homes to electric vehicle
charging infrastructure. We are working to ensure green energy can meet the
needs of our diverse service territory in the timeframe required to impact the
effects of climate change.
Build the Grid of the Future.
By 2030, we’ll invest more than $3 billion in infrastructure to make our systems
more resilient against extreme weather and to build transmission to move
renewable resources from where they are generated to where they are needed.
Invest $3 billion by
2030 in our systems
Con Edison’s grid of the future will need to accommodate additional electric
demand to support more electric vehicles on the road year-round, and peak
energy use in the winter once electric heating is more common. We’re investing
nearly $800 million in transmission infrastructure to deliver renewable energy
from solar plants and wind farms to our customers. Another $1 billion project
will establish an interconnection point so clean offshore wind power reaches the
heart of the city. In Orange County, we’ve already brought online a new, modern
$38 million electric substation to improve reliability and better integrate clean,
renewable energy.
Ensuring clean energy can be dispatched when needed will be critical to the
reliability of our grid going forward, and battery storage will become an essential
component of our systems. Con Edison is planning to deliver 1,000 MW of
energy storage by 2030. Our expertise in delivering renewable energy reliably
and efficiently positions us to own and operate large-scale renewable generation,
which will help bring more renewables to market more efficiently for customers.
That’s why we’re making the case to the state to allow us to do so.
Simultaneously, Con Edison Transmission is growing our electric transmission
business. We are in the final phase of a transmission project that will bring an
additional 2,100 MW of energy from upstate New York to downstate, including
more renewable generation. We also have a proposal to bring offshore wind
power from the south shore of Long Island to New York City and more northern
areas of the state. Con Edison Transmission continues to seek transmission
opportunities that bring renewables from production areas to customers across
the country.
To maintain our standout reliability, we’ll continue to prioritize the resiliency of our
systems. In the face of ever-more extreme weather, we reassess our processes
Deliver 1,000 MW of
energy storage by 2030
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Con Edison Annual Report 2022
and reinforce our infrastructure. We have invested in a fleet of more than 100
bucket trucks and staged them to respond to widespread storm damage
whenever they’re needed. Crews from across the country can use those trucks
upon flying into the region instead of driving their own vehicles here. The fleet will
speed up outage-response time for customers and give us greater control over
resources at a time when extreme weather is causing more widespread damage.
Security is essential to our infrastructure as well as our customers. So, we
continue to invest in cyber and physical security measures. We’ve leveraged
technology to tighten access to our critical facilities and collaborated
with government, law enforcement, and energy sector partners to fortify the
power grid.
Empower All Customers to Meet Climate Goals.
Energy efficiency is at the heart of the clean energy future. Since 2009, our
rebates and incentives have helped more than 5 million customers upgrade their
lighting, heating, and cooling systems. The impact is equivalent to taking more
than 3 million gasoline vehicles off the road.
Commercial and multi-family buildings are two of the largest and toughest-to-
tackle sources of carbon emissions, but by addressing them, we have potential
to make significant progress on our climate goals. To reach the state’s 2030
carbon-reduction target, Con Edison will need to invest billions in the
electrification of buildings. We’re working closely with partners in government at
the city and state level, and with building owners and managers directly to make
this happen on schedule.
On the transportation side, we want to make sure every driver in our region has
access to electric vehicle charging stations. Building out charging infrastructure
is the key to EV adoption, especially in urban areas. We’ll increase the number
of charging plugs in our region by tenfold over the next three years. And, we’re
looking to expand our incentives to encourage more overnight charging when
energy use is low, easing strain on the grid.
Increase the number
of charging plugs
by tenfold in the next
3 years
Reimagine the Gas System.
1.2 million customers use our gas system for heating, hot water, and cooking.
They count on us for safe, reliable, and efficient energy, and we must create a
cleaner path forward for them.
Our gas transition strategy starts with working with customers to reduce their
gas consumption through energy efficiency, and moving them to electric
appliances wherever possible. As new all-electric buildings come online, we’ll
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Con Edison Annual Report 2022 have the grid to support their needs. We’ll work to electrify older building stock,
including schools and public housing, with new technology like window-unit
heat pumps. We’re exploring the use of low-carbon fuels, specifically for hard-
to-electrify customers and large commercial customers where electrification is
not practical. All of these efforts support our goals of achieving net-zero
greenhouse gas emissions by 2050.
Lead by Reducing Our Carbon Footprint.
For the last two decades, we’ve steadfastly focused on greening our business.
We’ve succeeded in reducing our carbon footprint, namely our directly-
produced emissions, by more than 50% since 2005.
We’re also working to eliminate methane emissions from our gas system, and
to decarbonize our steam system, with a goal of net-zero emissions by 2040.
Ultimately, we aim to power all our company facilities with 100% clean energy
within the next decade.
We’re making our commitment visible on the streets by purchasing only electric
light-duty vehicles. We continue to look at alternative technologies to reduce
fossil fuels for our truck fleet. Today, we’re operating one of the nation’s
first all-electric bucket trucks. Another is expected to be delivered this year.
PARTNER WITH OUR STAKEHOLDERS
Collaborations and partnerships with our stakeholders are the keys to uncovering
different perspectives, limitless potential, and critical support.
Power all our company
facilities with
100% clean energy
in the next decade
Diversity and Sustainability of Our Supply Chain.
Last year alone, we spent more than $420 million with minority- and women-
owned businesses. We were proud to be named the 2022 Local Corporation of
the Year by the New York & New Jersey Minority Supplier Development Council.
We’re a partner in the Clean Energy Academy, which prepares participants to
enter the green-collar workforce as energy efficiency professionals. It’s part of
an ecosystem of programs we’ve developed called Green Energy Opportunities
to support our commitment to supplier diversity and growing participation in
our energy efficiency programs.
Spent $420 million
with minority- and
women-owned
businesses in 2022
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Con Edison Annual Report 2022
Environmental Justice.
To deliver a more just energy future, we’re focused on disadvantaged
communities who have been overburdened by pollution. We advocate for and
support community solar power programs. We’ve formed an Environmental
Justice Working Group to bring an equity lens to all we do. This group
complements our advocacy work at the state and federal levels, as well as our
operational efforts, to ensure the costs and benefits of new investments are
borne equitably.
Charitable Giving.
To enhance the quality of life in our communities, we gave $12.6 million to
more than 600 nonprofits in our service territory last year. Our support for
environmental groups grew for the fifth year. Some of our beneficiaries include
the NYC Wildflower Project, The Friends of the High Line, and the City
Growers’ Bee Corps youth program, which concentrate on biodiversity
and fortifying ecosystems that protect life. Additionally, we connect our people
with opportunities to give back through volunteering and by matching
employee donations.
Our Dedicated and Diverse Workforce.
Our nearly 14,000 employees are at the heart of everything we do. Their
unparalleled expertise drives our exceptional performance and successes. We’re
laser-focused on cultivating a more equitable, inclusive, and diverse culture, and
increasing the representation of people of color and women from entry-level
positions through corporate leadership. Con Edison has been recognized as
a Forbes Best Company for Diversity and was named a Top 100 corporation by
the Human Rights Campaign for adopting equitable workplace policies,
practices, and benefits for LGTBQ+ employees.
Financial Highlights 2022
Gave $12.6 million to
600 nonprofits in 2022
$15,670
Operating
Revenue
(in millions)
$3.16
Dividends
Per Share
$95.31
Stock Price
Per Share
(Year End)
16%
Total
Shareholder
Return
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Con Edison Annual Report 2022 STRONG FINANCIAL OUTLOOK
Our fiscal discipline will continue to serve us well as we transition to the clean
energy future and ensure our customers reap the long-term benefits of a cleaner,
more equitable future. We are ready to deliver those needed investments and
provide returns to you, our investors.
Our new rate cases for electric, gas, and steam services set up the structure for
programs and finances over the next several years, positioning our company to
remain competitive and keep our service reliable and efficient.
Still, the clean energy future will put pressure on customer bills. While these
increases are burdensome, our efforts to create efficiencies and our thoughtful,
consistent, clear communications, demonstrate our concern for customers.
We’re committed to keeping our customers informed about ways to manage bills,
reduce energy use, and take advantage of bill relief and other incentive programs
offered by the state. We will also pursue funding for some of the transition costs
through federal and state tax incentives or grant programs in order to reduce costs
for customers. Affordability remains an important part of our mission.
Strong corporate governance practices and our board with diverse skills, ethnicity,
and gender makeup, will keep us sustainable and enable us to deliver great things.
Ever optimistic, I believe that the very best is yet to come. I’m confident
Con Edison has the talent, technology, and tenacity to deliver a more equitable,
clean energy future that’s worthy of our customers and the great region we
serve, now and for generations to come.
Thank you for your support.
Timothy P. Cawley
Chairman, President, and Chief Executive Officer
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Con Edison Annual Report 2022
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
___________________________________________________
FORM 10-K
___________________________________________________
☒ Annual Report Pursuant To Section 13 or 15(d) of the Securities Exchange Act of 1934
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2022
OR
☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the transition period from to
___________________________________________________
Commission File Number 1-14514
Consolidated Edison, Inc.
Exact name of registrant as specified in its charter
and principal office address and telephone number
New York
State of Incorporation
13-3965100
I.R.S. Employer
ID. Number
4 Irving Place,
New York, New York 10003
(212) 460-4600
___________________________________________________
Commission File Number 1-1217
Consolidated Edison Company of New York, Inc.
Exact name of registrant as specified in its charter
and principal office address and telephone number
New York
State of Incorporation
13-5009340
I.R.S. Employer
ID. Number
4 Irving Place,
New York, New York 10003
(212) 460-4600
___________________________________________________
CON EDISON ANNUAL REPORT 2022
1
Securities Registered Pursuant to Section 12(b) of the Act:
Title of each class
Consolidated Edison, Inc.,
Common Shares ($.10 par value)
Trading Symbol
ED
Name of each exchange
on which registered
New York Stock Exchange
Securities Registered Pursuant to Section 12(g) of the Act: None
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities
Act.
Consolidated Edison, Inc. (Con Edison)
Consolidated Edison Company of New York, Inc. (CECONY)
Yes x
Yes x
No ¨
No ¨
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the
Act.
Con Edison
CECONY
Yes ¨
Yes ¨
No x
No x
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of
the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant
was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Con Edison
CECONY
Yes x
Yes x
No ¨
No ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be
submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for
such shorter period that the registrant was required to submit such files).
Con Edison
CECONY
Yes x
Yes x
No ¨
No ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated
filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”,
“accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Con Edison
Large accelerated filer
Non-accelerated filer
CECONY
Large accelerated filer
Non-accelerated filer
x
¨
¨
x
Accelerated filer
Smaller reporting company
Emerging growth company
Accelerated filer
Smaller reporting company
Emerging growth company
¨
☐
☐
¨
☐
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended
transition period for complying with any new or revised financial accounting standards provided pursuant to Section
13(a) of the Exchange Act. ¨
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment
of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act
(15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.
Con Edison
CECONY
Yes x
Yes x
No ☐
No ☐
2
CON EDISON ANNUAL REPORT 2022
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial
statements of the registrant included in the filing reflect the correction of an error to previously issued financial
statements.
Con Edison
CECONY
☐
Not Applicable
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of
incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery
period pursuant to §240.10D-1(b).
Con Edison
CECONY
☐
Not Applicable
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).
Con Edison
CECONY
Yes ☐
Yes ☐
No x
No x
The aggregate market value of the common equity of Con Edison held by non-affiliates of Con Edison, as of
June 30, 2022, was approximately $33.7 billion.
As of January 31, 2023, Con Edison had outstanding 355,045,021 Common Shares ($.10 par value).
All of the outstanding common equity of CECONY is held by Con Edison.
Documents Incorporated By Reference
Portions of Con Edison’s definitive proxy statement for its Annual Meeting of Stockholders to be held on May 15,
2023, to be filed with the Commission pursuant to Regulation 14A, not later than 120 days after December 31,
2022, is incorporated in Part III of this report.
Filing Format
This Annual Report on Form 10-K is a combined report being filed separately by two different registrants:
Consolidated Edison, Inc. (Con Edison) and Consolidated Edison Company of New York, Inc. (CECONY). CECONY
is a wholly-owned subsidiary of Con Edison and, as such, the information in this report about CECONY also applies
to Con Edison. CECONY meets the conditions set forth in General Instruction (I)(1)(a) and (b) of Form 10-K and is
therefore filing this Form 10-K with the reduced disclosure format.
As used in this report, the term the “Companies” refers to Con Edison and CECONY. However, CECONY makes no
representation as to the information contained in this report relating to Con Edison or the subsidiaries of Con Edison
other than itself.
CON EDISON ANNUAL REPORT 2022
3
Glossary of Terms
The following is a glossary of abbreviations or acronyms that are used in the Companies’ SEC reports:
Con Edison Companies
Con Edison
CECONY
Clean Energy Businesses
Consolidated Edison, Inc.
Consolidated Edison Company of New York, Inc.
Con Edison Clean Energy Businesses, Inc., together with its subsidiaries, including
Consolidated Edison Development, Inc., Consolidated Edison Energy, Inc. and Consolidated
Edison Solutions, Inc.
Con Edison Transmission
Con Edison Transmission, Inc., together with its subsidiaries
O&R
RECO
The Companies
The Utilities
Orange and Rockland Utilities, Inc.
Rockland Electric Company
Con Edison and CECONY
CECONY and O&R
Regulatory Agencies, Government Agencies and Other Organizations
EPA
FASB
FERC
IRS
NJBPU
NJDEP
NYISO
NYPA
NYSDEC
NYSDPS
NYSERDA
NYSPSC
NYSRC
PJM
SEC
Accounting
AFUDC
ASU
GAAP
HLBV
NOL
OCI
VIE
U.S. Environmental Protection Agency
Financial Accounting Standards Board
Federal Energy Regulatory Commission
Internal Revenue Service
New Jersey Board of Public Utilities
New Jersey Department of Environmental Protection
New York Independent System Operator
New York Power Authority
New York State Department of Environmental Conservation
New York State Department of Public Service
New York State Energy Research and Development Authority
New York State Public Service Commission
New York State Reliability Council, LLC
PJM Interconnection LLC
U.S. Securities and Exchange Commission
Allowance for funds used during construction
Accounting Standards Update
Generally Accepted Accounting Principles in the United States of America
Hypothetical Liquidation at Book Value
Net Operating Loss
Other Comprehensive Income
Variable Interest Entity
4
CON EDISON ANNUAL REPORT 2022
Environmental
CO2
GHG
MGP Sites
PCBs
PRP
RGGI
Superfund
Units of Measure
AC
Bcf
Dt
kV
kWh
MDt
Mlb
MMlb
MVA
MW
MWh
Other
AMI
CARES Act
CLCPA
COSO
COVID-19
DER
Fitch
LTIP
Moody’s
S&P
TCJA
VaR
Carbon dioxide
Greenhouse gases
Manufactured gas plant sites
Polychlorinated biphenyls
Potentially responsible party
Regional Greenhouse Gas Initiative
Federal Comprehensive Environmental Response, Compensation and Liability Act of 1980 and
similar state statutes
Alternating current
Billion cubic feet
Dekatherms
Kilovolt
Kilowatt-hour
Thousand dekatherms
Thousands of pounds
Million pounds
Megavolt ampere
Megawatt or thousand kilowatts
Megawatt hour
Advanced Metering Infrastructure
Coronavirus Aid, Relief, and Economic Security Act, as enacted on March 27, 2020
Climate Leadership and Community Protection Act
Committee of Sponsoring Organizations of the Treadway Commission
Coronavirus Disease 2019
Distributed energy resources
Fitch Ratings
Long Term Incentive Plan
Moody’s Investors Service
S&P Global Ratings
The federal Tax Cuts and Jobs Act of 2017, as enacted on December 22, 2017
Value-at-Risk
CON EDISON ANNUAL REPORT 2022
5
TABLE OF CONTENTS
Introduction
Available Information
Forward-Looking Statements
Non-GAAP Financial Measures
Part I
Item 1:
Business
Item 1A: Risk Factors
Item 1B: Unresolved Staff Comments
Item 2:
Properties
Item 3:
Legal Proceedings
Item 4:
Mine Safety Disclosures
Information about our Executive Officers
Part II
Item 5:
Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
Item 6:
[Reserved]
Item 7:
Management’s Discussion and Analysis of Financial Condition and Results of Operations
Item 7A: Quantitative and Qualitative Disclosures about Market Risk
Item 8:
Financial Statements and Supplementary Data
Item 9:
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
Item 9A: Controls and Procedures
Item 9B: Other Information
Item 9C: Disclosure Regarding Foreign Jurisdictions that Prevent Inspections
Part III
Item 10: Directors, Executive Officers and Corporate Governance
Item 11:
Executive Compensation
Item 12:
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
Item 13: Certain Relationships and Related Transactions, and Director Independence
Item 14:
Principal Accounting Fees and Services
Part IV
Item 15:
Exhibits and Financial Statement Schedules
Item 16:
Form 10-K Summary
Signatures
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200
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6
CON EDISON ANNUAL REPORT 2022
Introduction
This introduction contains certain information about Con Edison and its subsidiaries, including CECONY. This
introduction is not a summary and should be read together with, and is qualified in its entirety by reference to, the
more detailed information appearing elsewhere or incorporated by reference in this report.
Con Edison’s mission is to provide energy services to our customers safely, reliably, efficiently and in keeping with
our vision for a clean energy future; to provide a workplace that embraces diversity and inclusion and allows
employees to realize their full potential; to provide a fair return to our investors; and to improve the quality of life in
the communities we serve. The company has ongoing programs designed to support each component of its
mission, including initiatives focused on safety, operational excellence and the customer experience.
Con Edison is a holding company that owns:
•
Consolidated Edison Company of New York, Inc. (CECONY), which provides electric service and gas service in
New York City and Westchester County and steam service in parts of Manhattan;
•
• Orange & Rockland Utilities, Inc., which along with its NJ electric utility subsidiary, Rockland Electric Company
(together referred to herein as O&R), provides electric service in southeastern NY and northern NJ and gas
service in southeastern NY (O&R, together with CECONY referred to as the Utilities);
Con Edison Clean Energy Businesses, Inc., which through its subsidiaries, develops, owns and operates
renewable energy infrastructure projects and provides energy-related products and services to wholesale and
retail customers (Con Edison Clean Energy Businesses, Inc., together with its subsidiaries referred to as the
Clean Energy Businesses); see "Assets and Liabilities Held For Sale" in Note A and Note X to the financial
statements in Item 8 for information about the anticipated sale of the Clean Energy Businesses; and
Con Edison Transmission, Inc., which through its subsidiaries, invests in electric transmission projects
supporting Con Edison’s effort to transition to clean, renewable energy and through joint ventures manages
both electric and gas assets while seeking to develop electric transmission projects (Con Edison Transmission,
Inc., together with its subsidiaries referred to as Con Edison Transmission).
•
Con Edison anticipates that the Utilities, which are subject to extensive regulation, will continue to provide
substantially all of its earnings over the next few years. The Utilities have approved rate plans that are generally
designed to cover each company’s cost of service, including capital and other costs of each company’s energy
delivery systems. The Utilities recover from their full-service customers (who purchase energy from them), generally
on a current basis, the cost the Utilities pay for energy and charge all of their customers the cost of delivery service.
See "Utility Regulation" in Item 1, "Risk Factors" in Item 1A, "Financial and Commodity Market Risks - Commodity
Price Risk" in Item 7 and "Rate Plans" in Note B to the financial statements in Item 8.
Significant Developments and Outlook
•
Con Edison reported 2022 net income of $1,660 million or $4.68 a share compared with $1,346 million or $3.86
a share in 2021. Adjusted earnings were $1,620 million or $4.57 a share in 2022 compared with $1,528 million
or $4.39 a share in 2021. See “Results of Operations” in Item 7 and “Non-GAAP Financial Measures,” below.
•
•
•
In 2022, the Utilities invested $4,001 million to upgrade and reinforce their energy delivery systems, the Clean
Energy Businesses invested $399 million in renewable electric projects and Con Edison Transmission invested
$65 million primarily in electric transmission. For 2023, 2024 and 2025 the Utilities expect to invest $4,675
million, $4,840 million and $4,957 million, respectively, for their energy delivery systems and Con Edison
Transmission expects to invest $58 million, $6 million and $6 million, respectively, primarily in electric
transmission. See "Capital Requirements and Resources - Capital Requirements" in Item 1.
During the first nine months of 2022, Con Edison considered strategic alternatives with respect to the Clean
Energy Businesses. In October 2022, following the conclusion of such review and to allow for continued focus
on the Utilities and their clean energy transition, Con Edison entered into a purchase and sale agreement
pursuant to which Con Edison agreed to sell the Clean Energy Businesses to RWE Renewables America, LLC,
a subsidiary of RWE Aktiengesellschaft. The transaction is expected to close on or about the end of the first
quarter of 2023, subject to satisfaction of certain conditions. The Clean Energy Businesses were classified as
held for sale as of December 31, 2022. See “Assets and Liabilities Held for Sale” in Note A and Note X to the
financial statements in Item 8.
Con Edison plans to meet its capital requirements for 2023 through 2025 through internally-generated funds,
the anticipated net proceeds from the sale of the Clean Energy Businesses and the issuance of long-term debt
CON EDISON ANNUAL REPORT 2022
7
•
•
•
•
•
•
•
and common equity. See “Capital Requirements and Resources - Capital Requirements” in Item 1. Subject to,
and following the closing of the sale of the Clean Energy Businesses, Con Edison intends to repay $1,250
million of parent company debt in 2023, invest in the Utilities and repurchase up to $1,000 million of its common
shares. In anticipation of the proceeds from the pending transaction, Con Edison intends to forego common
equity issuances in 2023 and 2024 and plans on issuing up to $900 million of common equity in 2025. The
company's plans also include the issuance of up to $1,400 million of long-term debt at the Utilities in 2023 and
approximately $2,600 million in aggregate of long-term debt, including for maturing securities, at the Utilities,
during 2024 and 2025.
CECONY forecasts average annual increase in peak demand in its service area at design conditions over the
next five years for electricity and gas to be approximately 0.6 percent and 1.0 percent, respectively and an
average annual decrease in steam peak demand in its service area at design weather conditions over the next
five years to be approximately 0.1 percent. O&R forecasts an average annual increase in electric peak demand
in its service area at design conditions over the next five years to be approximately 0.4 percent and average
annual decrease in gas peak demand in its service area over the next five years at design conditions to be
approximately 0.1 percent. See “The Utilities” in Item 1.
For the year ended December 31, 2022, CECONY and O&R issued total credits of approximately $360 million
and $6 million, respectively, towards reducing customers’ accounts receivable balances pursuant to COVID-19
arrears assistance programs. See "COVID-19 Regulatory Matters" in Note B to the financial statements in Item
8.
Pursuant to their current electric and gas rate plans, CECONY and O&R recorded $53 million ($39 million
after-tax) and $3 million ($2 million after-tax) of revenues for the year ended December 31, 2022, respectively,
of earnings adjustment mechanisms and positive incentives, primarily reflecting the achievement of certain
energy efficiency measures, as compared with $92 million ($68 million after-tax) and $2 million ($2 million
after- tax) for CECONY and O&R, respectively, for the year ended December 31, 2021 and $50 million ($37
million after-tax) and $3 million ($2 million after-tax) for CECONY and O&R, respectively, for the year ended
December 31, 2020. See "Rate Plans" in Note B to the financial statements in Item 8.
The New York State Public Service Commission (NYSPSC) continued its focused operations audit of the
Utilities related to income tax accounting. The audit is investigating the Utilities’ inadvertent understatement of a
portion, the amount of which may be material, of their calculation of total federal income tax expense for
ratemaking purposes. The understatement was related to the calculation of plant retirement-related cost of
removal. See "Other Regulatory Matters" in Note B to the financial statements in Item 8.
In November 2022, as updated in February 2023, CECONY filed a request with the NYSPSC for a steam rate
increase of $141 million, effective November 2023. See "Rate Plans" in Note B to the financial statements in
Item 8.
In February 2023, CECONY, the New York State Department of Public Service (NYSDPS) and other parties
entered into a Joint Proposal for CECONY electric and gas rate plans for the three-year period from January
2023 through December 2025. The Joint Proposal is subject to NYSPSC approval. See “Rate Plans” in Note B
to the financial statements in Item 8.
In January 2023, the NYSPSC issued an order implementing a Phase 2 COVID-19 arrears assistance program
that provides credits towards reducing the arrears balances of residential and small commercial electric and gas
customers of CECONY and O&R. At the time the order was issued, CECONY’s and O&R’s eligible arrears
balances were estimated to be approximately $389 million and $3 million, respectively. The order authorizes a
surcharge mechanism for recovery of the eligible credit amounts over a ten-year period commencing after
credits are issued for CECONY and over a one-year period commencing after credits are issued for O&R.
Pursuant to the order, CECONY and O&R agreed not to seek recovery of incremental financing costs incurred
associated with arrears from March 2020 through December 2022 estimated to be $46 million, most of which is
attributable to CECONY. To facilitate implementation, CECONY and O&R agreed to suspend residential
terminations for non-payment through March 1, 2023 or 30 days after credits have been applied, whichever is
later. See "COVID-19 Regulatory Matters" in Note B to the financial statements in Item 8.
8
CON EDISON ANNUAL REPORT 2022
Available Information
Con Edison and CECONY file annual, quarterly and current reports and other information, and Con Edison files
proxy statements, with the Securities and Exchange Commission (SEC). The SEC maintains an Internet site at
www.sec.gov that contains reports, proxy statements, and other information regarding issuers (including Con Edison
and CECONY) that file electronically with the SEC.
This information the Companies file with the SEC is also available free of charge on or through the investor
information section of their websites as soon as reasonably practicable after the reports are electronically filed with,
or furnished to, the SEC. Con Edison’s internet website is at: www.conedison.com; and CECONY’s is at:
www.coned.com.
The "About Us - Corporate Governance" section of Con Edison’s website includes the company’s Standards of
Business Conduct (its code of ethics) and amendments or waivers of the standards for executive officers or
directors, corporate governance guidelines and the charters of the following committees of the company’s Board of
Directors: Audit Committee, Corporate Governance and Nominating Committee, Management Development and
Compensation Committee, and Safety, Environment, Operations, and Sustainability Committee. This information is
available in print to any shareholder who requests it. Requests should be directed to: Corporate Secretary,
Consolidated Edison, Inc., 4 Irving Place, New York, NY 10003.
The "About Us - Sustainability Report” section of Con Edison’s website includes “Leading the Clean Energy
Transition,” the company’s 2021 sustainability report.
Information on the Companies’ websites is not incorporated herein.
Forward-Looking Statements
This report contains forward-looking statements that are intended to qualify for the safe-harbor provisions of Section
27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Forward-looking statements are statements of future expectation and not facts. Words such as
"forecasts," "expects," "estimates," "anticipates," "intends," "believes," "plans," "will," "target," "guidance,"
"potential," "consider" and similar expressions identify forward-looking statements. The forward-looking statements
reflect information available and assumptions at the time the statements are made, and accordingly, speak only as
of that time. Actual results or developments might differ materially from those included in the forward-looking
statements because of various factors including, but not limited to, those discussed under “Risk Factors,” in Item
1A.
Non-GAAP Financial Measures
Adjusted earnings and adjusted earnings per share are financial measures that are not determined in accordance
with generally accepted accounting principles in the United States of America (GAAP). These non-GAAP financial
measures should not be considered as an alternative to net income for common stock or net income per share,
respectively, each of which is an indicator of financial performance determined in accordance with GAAP. Adjusted
earnings and adjusted earnings per share exclude from net income and net income per share, respectively, certain
other items that the company does not consider indicative of its ongoing financial performance. Management uses
these non-GAAP financial measures to facilitate the analysis of the company's financial performance as compared
to its internal budgets and previous financial results and to communicate to investors and others the company’s
expectations regarding its future earnings and dividends on its common stock. Management believes that these
non-GAAP financial measures are also useful and meaningful to investors to facilitate their analysis of the
company's financial performance. The following table is a reconciliation of Con Edison’s reported net income for
common stock to adjusted earnings and reported earnings per share to adjusted earnings per share.
CON EDISON ANNUAL REPORT 2022
9
(Millions of Dollars, except per share amounts)
Reported net income for common stock – GAAP basis
2020
2021
2022
$1,101
$1,346
$1,660
Impact of the anticipated sale of the Clean Energy Businesses (pre-tax) (a) (b)
Income taxes (c)
Impact of the anticipated sale of the Clean Energy Businesses (net of tax) (a) (b)
HLBV effects (pre-tax) (d)
Income taxes (e)
HLBV effects (net of tax) (d)
Net mark-to-market effects (pre-tax)
Income taxes (f)
Net mark-to-market effects (net of tax)
Loss from sale of a renewable electric project (pre-tax)
Income taxes (g)
Loss from sale of a renewable electric project (net of tax)
Remeasurement of deferred state taxes related to prior year dispositions (net of federal
taxes)
Remeasurement of deferred state taxes related to prior year dispositions (net of federal
taxes)
Impairment loss related to investment in Stagecoach Gas Services LLC (pre-tax) (h)
Income taxes (g)
Impairment loss related to investment in Stagecoach Gas Services LLC (net of tax) (h)
Impairment loss related to investment in Honeoye Storage Corporation (pre-tax) (i)
Income taxes
Impairment loss related to investment in Honeoye Storage Corporation (net of tax) (i)
Impairment loss related to investment in Mountain Valley Pipeline, LLC (pre-tax) (j)
Income taxes (g)
Impairment loss related to investment in Mountain Valley Pipeline, LLC (net of tax) (j)
Adjusted earnings (Non-GAAP)
Reported earnings per share – GAAP basis (basic)
Impact of the anticipated sale of the Clean Energy Businesses (pre-tax) (a) (b)
Income taxes (c)
Impact of the anticipated sale of the Clean Energy Businesses(net of tax) (a) (b)
HLBV effects (pre-tax) (d)
Income taxes (e)
HLBV effects (net of tax) (d)
Net mark-to-market effects (pre-tax)
Income taxes (f)
Net mark-to-market effects
Loss from sale of a renewable electric project (pre-tax)
Income taxes (g)
Loss from sale of a renewable electric project (net of tax)
Remeasurement of deferred state taxes related to prior year dispositions (net of federal
taxes)
Remeasurement of deferred state taxes related to prior year dispositions (net of federal
taxes)
Impairment loss related to investment in Stagecoach Gas Services LLC (pre-tax) (h)
Income taxes (g)
Impairment loss related to investment in Stagecoach Gas Services LLC (net of tax) (h)
Impairment loss related to investment in Honeoye Storage Corporation (pre-tax) (i)
Income taxes
Impairment loss related to investment in Honeoye Storage Corporation (net of tax) (i)
Impairment loss related to investment in Mountain Valley Pipeline, LLC (pre-tax) (j)
Income taxes (g)
Impairment loss related to investment in Mountain Valley Pipeline, LLC (net of tax) (j)
—
—
—
44
(12)
32
57
(14)
43
—
—
—
—
—
—
—
—
—
—
—
320
(97)
223
—
—
—
(142)
44
(98)
(53)
16
(37)
4
(1)
3
—
—
212
(65)
147
5
—
5
231
(69)
162
(13)
127
114
(61)
19
(42)
(181)
56
(125)
—
—
—
13
13
—
—
—
—
—
—
—
—
—
$1,399
$1,528
$1,620
$3.29
$3.86
$4.68
—
—
—
— (0.03)
—
—
0.35
0.32
0.14
(0.41)
(0.17)
(0.04)
0.12
0.10
0.18
(0.29)
(0.15)
(0.05)
0.05
0.05
(0.12)
(0.51)
0.16
0.13
(0.10)
(0.35)
—
—
—
—
—
—
0.01
—
0.01
—
—
0.61
— (0.19)
—
—
—
—
0.95
0.42
0.02
—
0.02
0.66
(0.29)
(0.19)
0.66
0.47
—
—
—
0.04
0.04
—
—
—
—
—
—
—
—
—
Adjusted earnings per share (Non-GAAP)
$4.18
$4.39
$4.57
10
CON EDISON ANNUAL REPORT 2022
a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
The Clean Energy Businesses were classified as held for sale as of December 31, 2022. See “Assets and Liabilities Held for Sale” in Note
A and Note X to the financial statements in Item 8.
The impact of the anticipated sale of the Clean Energy Businesses is comprised of: transaction costs ($0.14 a share and $0.10 a share net
of tax or $48 million and $35 million net of tax) and the effects of ceasing to record depreciation and amortization expenses on the Clean
Energy Businesses’ assets ($(0.17) a share and $(0.12) a share net of tax or $(61) million and $(42) million net of tax) for the year ended
December 31, 2022.
Amounts shown include the impact of the remeasurement of deferred state taxes and the valuation allowance for deferred tax assets
($0.34 a share net of federal taxes or $121 million net of federal taxes). The amount of income taxes for transaction costs and the effects of
ceasing to record depreciation and amortization expenses was calculated using a combined federal and state income tax rate of 27% and
31% for the year ended December 31, 2022, respectively.
Income attributable to the non-controlling interest of a tax-equity investor in renewable electric projects accounted for under the hypothetical
liquidation at book value (HLBV) method of accounting. See Note S to the financial statements in Item 8.
The amount of income taxes was calculated using a combined federal and state income tax rate of 31%, 31% and 27%, for the year ended
December 31, 2022, 2021 and 2020, respectively. Adjusted earnings and adjusted earnings per share for 2022 and 2021 exclude the tax
impact on the parent company of HLBV accounting ($(4) million and $(0.02) and $(9) million and $(0.02)) for the year ended December 31,
2022 and 2021, respectively) of the Clean Energy Businesses. Adjusted earnings and adjusted earnings per share for 2020 do not exclude
the tax impact on the parent company of HLBV accounting ($(3) million and $(0.01) for the year ended December 31, 2020) of the Clean
Energy Businesses.
The amount of income taxes was calculated using a combined federal and state income tax rate of 31%, 32% and 25% for the year ended
December 31, 2022, 2021 and 2020, respectively. Adjusted earnings and adjusted earnings per share for 2022 and 2021 exclude the tax
impact on the parent company of the mark-to-market effects ($(10) million and $(0.03) and $(3) million and $(0.01) for the year ended
December 31, 2022 and 2021) of the Clean Energy Businesses. Adjusted earnings and adjusted earnings per share for 2020 do not
exclude the tax impact on the parent company of the mark-to-market effects (($4) million and ($0.01) for the year ended December 31,
2020) of the Clean Energy Businesses.
The amount of income taxes was calculated using a combined federal and state income tax rate between 26-30% for the year ended
December 31, 2021 and a combined federal and state income tax rate of 30% for the year ended December 31, 2020.
Loss recognized with respect to the partial impairment of CET’s investment in Stagecoach Gas Services LLC. See "Investments - Partial
Impairment of Investment in Stagecoach Gas Services" in Note A and Note W.
Loss recognized with respect to the goodwill impairment of CET’s investment in Honeoye Storage Corporation. See Note K.
Losses recognized with respect to the partial impairments of CET's investment in Mountain Valley Pipeline, LLC. See "Investments - 2020
and 2021 Partial Impairments of Investment in Mountain Valley Pipeline, LLC (MVP)" in Note A to the financial statements in Item 8.
CON EDISON ANNUAL REPORT 2022
11
Item 1: Business
Contents of Item 1
Overview
CECONY
Electric
Gas
Steam
Electric
Gas
O&R
Clean Energy Businesses
Con Edison Transmission
Utility Regulation
State Utility Regulation
Regulators
New York Utility Industry
Rate Plans
Liability for Service Interruptions
Generic Proceedings
Federal Utility Regulation
New York Independent System Operator (NYISO)
Competition
The Utilities
CECONY
Electric Operations
Electric Facilities
Electric Sales and Deliveries
Electric Peak Demand
Electric Supply
Gas Operations
Gas Facilities
Gas Sales and Deliveries
Gas Peak Demand
Gas Supply
Steam Operations
Steam Facilities
Steam Sales and Deliveries
Steam Peak Demand and Capacity
Steam Supply
O&R
Electric Operations
Electric Facilities
Electric Sales and Deliveries
Electric Peak Demand
Electric Supply
Gas Operations
Gas Facilities
Gas Sales and Deliveries
Gas Peak Demand
Gas Supply
12
CON EDISON ANNUAL REPORT 2022
Page
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14
14
14
15
15
15
15
15
15
15
15
16
16
17
17
17
17
18
19
19
19
19
20
20
21
21
21
22
22
23
23
23
23
24
24
24
24
24
24
25
25
25
25
26
26
27
Contents of Item 1
Clean Energy Businesses
Renewable Electric Generation
Energy-Related Products and Services
Con Edison Transmission
Capital Requirements and Resources
Environmental Matters
Clean Energy Future
Climate Change
Environmental Sustainability
CECONY
O&R
Other Federal, State and Local Environmental Provisions
State Anti-Takeover Law
Human Capital
Page
28
29
30
30
31
35
35
37
39
39
42
42
43
43
Incorporation By Reference
Information in any item of this report as to which reference is made in this Item 1 is hereby incorporated by
reference in this Item 1. The use of terms such as “see” or “refer to” shall be deemed to incorporate into Item 1 at
the place such term is used the information to which such reference is made.
CON EDISON ANNUAL REPORT 2022
13
PART I
Item 1: Business
Overview
Consolidated Edison, Inc. (Con Edison), incorporated in New York State in 1997, is a holding company that owns all
of the outstanding common stock of Consolidated Edison Company of New York, Inc. (CECONY), Orange and
Rockland Utilities, Inc. (O&R), Con Edison Clean Energy Businesses, Inc. and Con Edison Transmission, Inc. As
used in this report, the term the “Companies” refers to Con Edison and CECONY.
Con Edison
CECONY
O&R
• RECO
Clean Energy
Businesses
(Classified as held for sale
as of December 31, 2022)
Con Edison
Transmission
Con Edison’s principal business operations are those of CECONY, O&R, the Clean Energy Businesses and Con
Edison Transmission. CECONY’s principal business operations are its regulated electric, gas and steam delivery
businesses. O&R’s principal business operations are its regulated electric and gas delivery businesses. The Clean
Energy Businesses develop, own and operate renewable energy infrastructure projects and provide energy-related
products and services to wholesale and retail customers. In October 2022, Con Edison entered into a purchase and
sale agreement pursuant to which Con Edison agreed to sell the Clean Energy Businesses to RWE Renewables
America, LLC, a subsidiary of RWE Aktiengesellschaft. The transaction is expected to close on or about the end of
the first quarter of 2023, subject to satisfaction of certain conditions. The Clean Energy Businesses were classified
as held for sale as of December 31, 2022. See “Assets and Liabilities Held for Sale” in Note A and Note X to the
financial statements in Item 8. Con Edison Transmission invests in electric transmission projects and manages both
electric and gas assets while seeking to develop electric transmission projects.
Con Edison seeks to provide shareholder value through continued dividend growth, supported by earnings growth in
regulated utilities and contracted electric transmission assets. The company invests to provide reliable, resilient,
safe and clean energy critical for its NY customers. Con Edison is a responsible neighbor, helping the communities
it serves become more sustainable.
CECONY
Electric
CECONY provides electric service to approximately 3.6 million customers in all of New York City (except a part of
Queens) and most of Westchester County, an approximately 660 square mile service area with a population of more
than nine million.
Gas
CECONY delivers gas to approximately 1.1 million customers in Manhattan, the Bronx, parts of Queens and most of
Westchester County.
Steam
CECONY operates the largest steam distribution system in the United States by producing and delivering
approximately 17,427 MMlb of steam annually to approximately 1,530 customers in parts of Manhattan.
14
CON EDISON ANNUAL REPORT 2022
O&R
Electric
O&R and its utility subsidiary, Rockland Electric Company (RECO) (together referred to herein as O&R) provide
electric service to approximately 0.3 million customers in southeastern NY and northern NJ, an approximately 1,300
square mile service area.
Gas
O&R delivers gas to over 0.1 million customers in southeastern NY.
Clean Energy Businesses
Con Edison Clean Energy Businesses, Inc., together with its subsidiaries, are referred to in this report as the Clean
Energy Businesses. The Clean Energy Businesses develop, own and operate renewable energy infrastructure
projects and provide energy-related products and services to wholesale and retail customers. The Clean Energy
Businesses have approximately 3,300 megawatts (AC) of renewable energy projects in the U.S.
During the first nine months of 2022, Con Edison considered strategic alternatives with respect to the Clean Energy
Businesses. In October 2022, following the conclusion of such review and to allow for continued focus on the
Utilities and their clean energy transition, Con Edison entered into a purchase and sale agreement pursuant to
which Con Edison agreed to sell the Clean Energy Businesses to RWE Renewables America, LLC, a subsidiary of
RWE Aktiengesellschaft. The transaction is expected to close on or about the end of the first quarter of 2023,
subject to satisfaction of certain conditions. The Clean Energy Businesses were classified as held for sale as of
December 31, 2022. See “Assets and Liabilities Held for Sale” in Note A and Note X to the financial statements in
Item 8.
Con Edison Transmission
Con Edison Transmission, Inc. invests in electric transmission projects and manages both electric and gas assets.
CET owns a 45.7 percent interest in New York Transco LLC, which owns and has been selected to build additional
electric transmission assets in NY. CET and CECONY own 71.2 percent and 28.8 percent interests, respectively, in
Honeoye Storage Corporation (Honeoye), which operates a gas storage facility in upstate NY. In addition, CET
owns a 9.6 percent interest (that is expected to be reduced to 8.0 percent based on the current project cost estimate
and CET's’ previous capping of its cash contributions to the joint venture) in Mountain Valley Pipeline LLC (MVP), a
joint venture developing a proposed 300-mile gas transmission project in WV and VA.
Utility Regulation
State Utility Regulation
Regulators
The Utilities are subject to regulation by the NYSPSC, that under the New York Public Service Law, is authorized to
set the terms of service and the rates the Utilities charge for providing service in NY. See “Rate Plans,” below and in
Note B to the financial statements in Item 8. The NYSPSC also approves the issuance of the Utilities’ securities and
transactions between the Utilities and Con Edison and its other subsidiaries. See “Capital Resources,” below and
Note U to the financial statements in Item 8. The NYSPSC exercises jurisdiction over the siting of electric
transmission lines in NY State (see “Con Edison Transmission,” below) and approves mergers or other business
combinations involving NY utilities.
In addition, under the New York Public Service Law, the NYSPSC has the authority to (i) impose penalties on NY
utilities, which could be material, for violating state utility laws and regulations and its orders; (ii) review, at least
every five years, an electric and gas utility’s capability to provide safe, adequate and reliable service, order the utility
to comply with additional and more stringent terms of service than existed prior to the review, assess the continued
operation of the utility as the provider of electric service in its service territory and propose, and act upon, such
measures as are necessary to ensure safe and adequate service; and (iii) based on findings of repeated violations
of the New York Public Service Law or rules or regulations adopted thereto that demonstrate a failure of a
combination gas and electric utility to continue to provide safe and adequate service, revoke or modify an operating
certificate issued to the utility by the NYSPSC (following consideration of certain factors, including public interest
and standards deemed necessary by the NYSPSC to ensure continuity of service, and due process). See "Risk
Factors" in Item 1A and “Other Regulatory Matters” and "COVID-19 Regulatory Matters" in Note B to the financial
statements in Item 8. O&R’s NJ subsidiary, RECO, is subject to regulation by the New Jersey Board of Public
Utilities (NJBPU). The NYSPSC, together with the NJBPU, are referred to herein as state utility regulators.
CON EDISON ANNUAL REPORT 2022
15
New York Utility Industry
Restructuring in the 1990s
In the 1990s, the NYSPSC restructured the electric utility industry in the state. In accordance with NYSPSC orders,
the Utilities sold all of their electric generating facilities other than those that also produce steam for CECONY’s
steam business (see "Electric Operations – Electric Facilities," below) and provided all of their customers the choice
to buy electricity or gas from the Utilities or other suppliers (see "Electric Operations – Electric Sales and Deliveries"
and "Gas Operations – Gas Sales and Deliveries," below). In 2022, 57 percent of the electricity and 33 percent of
the gas CECONY delivered to its customers, and 49 percent of the electricity and 24 percent of the gas O&R
delivered to its customers, was purchased by the customers from other suppliers. In addition, the Utilities no longer
control and operate their bulk power electric transmission facilities. See “New York Independent System Operator
(NYISO),” below.
Following industry restructuring, there were several utility mergers as a result of which substantially all of the electric
and gas delivery service in NY State is now provided by one of five investor-owned utility companies – Con Edison,
National Grid plc, Avangrid, Inc. (an affiliate of Iberdrola, S.A.), National Fuel Gas Company or CH Energy Group,
Inc. (a subsidiary of Fortis Inc.) – or one of two state authorities – New York Power Authority (NYPA) or Long Island
Power Authority.
Rate Plans
Investor-owned utilities in the United States provide delivery service to customers according to the terms of tariffs
approved by the appropriate state utility regulator. The tariffs include schedules of rates for service that limit the
rates charged by the utilities to amounts that the utilities recover from their customers for costs approved by the
regulator, including capital costs, of providing service to customers as defined by the tariff. The tariffs implement rate
plans adopted by state utility regulators in rate orders issued at the conclusion of rate proceedings. The utilities’
earnings depend on the limits on rates authorized in, and the other provisions of, their rate plans and their ability to
operate their businesses in a manner consistent with such rate plans.
The utilities’ rate plans cover specified periods, but rates determined pursuant to a plan generally continue in effect
until a new rate plan is approved by the state utility regulator. In NY, either the utility or the NYSPSC can commence
a proceeding for a new rate plan, and a new rate plan filed by the utility will generally take effect automatically in
approximately 11 months unless prior to such time the NYSPSC approves a rate plan. The NYSPSC may request
that the utility agree to suspend its request for new rates beyond the 11 month period, but if the utility agrees then
the NYSPSC typically allows the utility to recover its new rates as if they went into effect at the 11-month date.
In each rate proceeding, rates are determined by the state utility regulator following the submission by the utility of
testimony and supporting information, which are subject to review by the staff of the regulator. Other parties with an
interest in the proceeding can also review the utility’s proposal and become involved in the rate proceeding. In NY
State, the review process is overseen by an administrative law judge who is employed by the NYSPSC. After an
administrative law judge issues a recommended decision that generally considers the interests of the utility, the
regulatory staff, other parties and legal requisites, the regulator will issue a rate order. The utility and the regulator’s
staff and interested parties may enter jointly into a proposed settlement agreement prior to the completion of this
administrative process, in which case the agreement could be approved by the regulator with or without
modification.
For each rate plan, the revenues needed to provide the utility a return on invested capital is determined by
multiplying the utilities’ rate base by the pre-tax weighted average cost of capital determined in the rate plan. In
general, rate base, as reflected in a utility's rate plans, is the sum of the utility’s net plant, working capital and certain
regulatory assets less deferred taxes and certain regulatory liabilities. The NYSPSC uses a forecast of the average
rate base for the year that new rates would be in effect (rate year). The NJBPU uses the rate base balances that
exist at the end of the historical 12-month period on which base rates are set. The capital structure used in the
weighted average cost of capital is determined using actual and forecast data for the same time periods as rate
base. The costs of long-term debt, customer deposits and the allowed return on common equity represent a
combination of actual and forecast financing information. The allowed return on common equity is determined by
each state’s respective utility regulator. The NYSPSC’s current methodology for determining the allowed return on
common equity assigns a one-third weight to an estimate determined from a capital asset pricing model applied to a
peer group of utility companies and a two-thirds weight to an estimate determined from a dividend discount model
using stock prices and dividend forecasts for a peer group of utility companies. Both methodologies employ market
measurements of equity capital to estimate returns rather than the accounting measurements to which such
estimates are applied in setting rates.
16
CON EDISON ANNUAL REPORT 2022
Pursuant to the Utilities’ rate plans, there generally can be no change to the rates charged to customers during the
respective terms of the rate plans other than specified adjustments provided for in the rate plans.
For information about the Utilities’ rate plans, see Note B to the financial statements in Item 8.
Liability for Service Interruptions
The tariff provisions under which CECONY provides electric, gas and steam service, and O&R provides electric and
gas service, limit each company’s liability to pay for damages resulting from service interruptions to circumstances
resulting from its gross negligence or willful misconduct. Under RECO's tariff provisions for electric service, the
company is not liable for interruptions that are due to causes beyond its control.
CECONY’s and O&R’s tariffs for electric and gas service also provide for compensation to residential and small
business customers that experience widespread prolonged outages lasting more than seventy-two consecutive
hours, subject to certain exceptions, including: for residential customers, a bill credit of $25 for each twenty-four
hour period of service outage beyond the first seventy-two consecutive hour outage; for residential and small
business customers, reimbursement for food spoilage of up to $540; and reimbursement of affected residential
customers for prescription medicine spoilage losses without limitation. Any such costs incurred by utilities are not
recoverable from customers. Utilities may petition the NYSPSC to request a waiver of the requirement that it
compensate customers after widespread prolonged outages. CECONY’s electric tariff requires it to also
compensate customers for certain other service outages resulting from malfunctions in the company’s lines and
cable of 33 kV or less or associated equipment, including, for residential customers, up to $540 for food spoilage
and actual losses for prescription medicine losses, and for all other customers, up to $10,700 for losses of
perishable merchandise.
The NYSPSC has approved a scorecard for use as a guide to assess electric utility performance in restoring electric
service during outages that result from a major storm. The scorecard could also be applied by the NYSPSC for
other outages or actions. The scorecard includes performance metrics in categories for preparation, operations
response, and communications.
Each NY electric utility is required to submit to the NYSPSC annually an emergency response plan for the
reasonably prompt restoration of service in the case of widespread outages in the utility’s service territory due to
storms or other events beyond the control of the utility. If, after evidentiary hearings or other investigatory
proceedings, the NYSPSC finds that the utility failed to reasonably implement its plan during an event, the NYSPSC
may impose penalties or deny recovery of any part of the service restoration costs caused by such failure. The
NYSPSC approved CECONY’s emergency response plan in July 2022 and O&R’s emergency response plan in May
2022. In December 2022, CECONY and O&R each submitted updated emergency response plans for 2023.
Generic Proceedings
The NYSPSC from time to time conducts “generic” proceedings to consider issues relating to all electric and gas
utilities operating in NY State. Proceedings include clean energy and related implementation proceedings, such as
the Climate Leadership and Community Protection Act proceeding, and proceedings relating to energy affordability,
data access, retail access, gas planning, energy efficiency and renewable energy programs, and negative revenue
adjustments for billing delays related to community solar generation projects. The Utilities typically are active
participants in such proceedings.
Federal Utility Regulation
The Federal Energy Regulatory Commission (FERC), among other things, regulates the transmission and
wholesale sales of electricity in interstate commerce and the transmission and sale of natural gas for resale in
interstate commerce. In addition, the FERC has the authority to impose penalties, which could be substantial,
including penalties for the violation of reliability and cyber security rules. Certain activities of the Utilities, the Clean
Energy Businesses (which were classified as held for sale as of December 31, 2022) and Con Edison Transmission
are subject to the jurisdiction of the FERC. The Utilities are subject to regulation by the FERC with respect to electric
transmission rates and to regulation by the NYSPSC with respect to electric and gas retail commodity sales and
local delivery service. As a matter of practice, the NYSPSC has approved delivery service rates for the Utilities that
include both transmission and distribution costs. Wholesale energy and capacity products sold by the Clean Energy
Businesses to the regional electric markets are subject to FERC jurisdiction as defined by the independent system
operator tariffs. The electric and gas transmission projects in which CET invests are also subject to regulation by the
FERC. See “Con Edison Transmission,” below.
CON EDISON ANNUAL REPORT 2022
17
New York Independent System Operator (NYISO)
The NYISO is a not-for-profit organization that controls and directs the operation of most of the electric transmission
facilities in NY State, including those of the Utilities, as an integrated system. It also administers wholesale markets
for electricity in NY State and facilitates the construction of new transmission it considers necessary to meet
identified reliability, economic or public policy needs. The New York State Reliability Council (NYSRC) promulgates
reliability standards subject to FERC oversight, and the NYISO has agreed to comply with those standards.
Pursuant to a requirement that is set annually by the NYSRC, the NYISO requires that entities supplying electricity
to customers in NY State have generating capacity (owned, procured through the NYISO capacity markets or
contracted for) in an amount equal to the peak demand of their customers plus the applicable reserve margin. In
addition, the NYISO has determined that entities that serve customers in New York City must procure sufficient
capacity from resources that are electrically located in New York City to cover a substantial percentage of the peak
demands of their New York City customers. The NYISO also requires entities that serve customers in the Lower
Hudson Valley and New York City customers that are served through the Lower Hudson Valley to procure sufficient
capacity from resources electrically located in the Lower Hudson Valley. These requirements apply both to regulated
utilities such as CECONY and O&R for the customers they supply under regulated tariffs and to other load serving
entities that supply customers on market terms. RECO, O&R’s NJ subsidiary, provides electric service in a portion of
its service territory that has a different independent system operator – PJM Interconnection LLC (PJM). See
“CECONY – Electric Operations – Electric Supply” and “O&R – Electric Operations – Electric Supply,” below.
Cyber Regulation
The Companies are subject to cyber regulation by federal agencies, including FERC, the Transportation Security
Agency and the Cybersecurity and Infrastructure Security Agency. The Utilities are subject to cyber regulation by the
NYSPSC, that under the New York Public Service Law, is authorized to evaluate annually the utility’s customer
privacy protections, including, but not limited to, customer electric and gas consumption data, and protection of
critical energy infrastructure. O&R’s subsidiary, RECO, is subject to cyber regulation by the NJBPU. See “The
Companies Are Extensively Regulated And Are Subject To Penalties” and "A Cyber Attack Could Adversely Affect
the Companies" in Item 1A.
Competition
The subset of distributed energy resources (DER) that produce electricity is collectively called distributed generation
(DG). DG includes solar energy production facilities, fuel cells, and micro-turbines, and provides an alternative
source of electricity for the Utilities’ electric delivery customers. Energy storage, though not a form of DG, is also a
source of electricity for the Utilities’ electric delivery customers. Typically, customers with DG remain connected to
the utility’s delivery system and do not pay a different rate. Gas delivery customers have electricity, oil and propane
as alternatives, and steam customers have electricity, oil and natural gas as alternative sources for heating and
cooling their buildings. Micro-grids and community-based micro-grids enable DG to serve multiple locations and
multiple customers. Demand reduction and energy efficiency investments provide ways for energy consumers within
the Utilities’ service areas to lower their energy usage. The Companies expect DERs and electric alternatives to gas
and steam, to increase, and for gas and steam usage to decrease, as the Climate Leadership and Community
Protection Act enacted by New York State and the Climate Mobilization Act enacted by New York City continue to be
implemented. In December 2021, New York City enacted a law that will phase-out the use of natural gas in certain
new construction buildings, including major renovations, in New York City. See “Environmental Matters – Clean
Energy Future,” below. CECONY’s smart solutions for gas customers include energy efficiency and heating
electrification programs. See “CECONY- Gas Operations - Gas Peak Demand,” below. The following table shows
the aggregate capacities of the DG projects connected to the Utilities’ distribution systems at the end of the
last five years:
18
CON EDISON ANNUAL REPORT 2022
Technology
CECONY
O&R
Total MW, except project number
2018
2019
2020
2021
2022
2018
2019
2020
2021
2022
Internal-combustion engines
Photovoltaic solar
Battery energy storage
Gas turbines
Micro turbines
Fuel cells
Steam turbines
Landfill
110
226
114
276
129
323
155
398
157
487
—
48
17
13
6
—
8
48
18
20
6
—
13
53
21
30
6
—
18
61
23
30
6
—
25
61
24
45
6
—
2
96
—
20
1
—
—
2
3
3
3
3
121
154
183
213
1
20
1
—
—
2
6
20
1
—
—
2
11
20
1
—
—
2
25
20
1
—
—
2
Total distribution-level DG
420
490
575
691
805
121
148
186
220
264
Number of DG projects
23,942 30,539 36,194 43,702 53,498
7,566
8,687
9,643
10,913
12,448
The Clean Energy Businesses participate in competitive renewable energy infrastructure projects and provide
energy-related products and services that are subject to different risks than those found in the businesses of the
Utilities. The Clean Energy Businesses were classified as held for sale as of December 31, 2022. See “Assets and
Liabilities Held for Sale” in Note A and Note X to the financial statements in Item 8. Con Edison Transmission
invests in electric transmission projects and manages both electric and gas assets, the current and prospective
customers of which may have competitive alternatives. See "Con Edison Transmission," below.
The Utilities do not consider it reasonably likely that another company would be authorized to provide utility delivery
service of electricity, gas or steam where the company already provides service. Any such other company would
need to obtain NYSPSC consent, satisfy applicable local requirements, install facilities to provide the service, meet
applicable services standards and charge customers comparable taxes and other fees and costs imposed on the
service. A new delivery company would also be subject to extensive ongoing regulation by the NYSPSC. See “Utility
Regulation – State Utility Regulation – Regulators,” above, "The Companies Are Extensively Regulated And Are
Subject To Substantial Penalties" in Item 1A and “Other Regulatory Matters” in Note B to the financial statements in
Item 8.
The Utilities
CECONY
CECONY, incorporated in New York State in 1884, is a subsidiary of Con Edison and has no significant subsidiaries
of its own. Its principal business segments are its regulated electric, gas and steam businesses.
For a discussion of the company’s operating revenues and operating income for each segment, see “Results of
Operations” in Item 7. For additional information about the segments, see Note P to the financial statements in
Item 8.
Electric Operations
Electric Facilities
CECONY’s capitalized costs for utility plant, net of accumulated depreciation, for distribution facilities were $22,130
million and $21,240 million at December 31, 2022 and 2021, respectively. For its transmission facilities, the costs for
utility plant, net of accumulated depreciation, were $3,916 million and $3,658 million at December 31, 2022 and
2021, respectively, and for its portion of the steam-electric generation facilities, the costs for utility plant, net of
accumulated depreciation, were $534 million and $559 million, at December 31, 2022 and 2021, respectively. See
"CECONY – Steam Operations – Steam Facilities," below.
Distribution Facilities
CECONY owns 63 area distribution substations and various distribution facilities located throughout New York City
and Westchester County. At December 31, 2022, the company’s distribution system had a transformer capacity of
33,703 MVA, with 37,489 miles of overhead distribution lines and 98,434 miles of underground distribution lines.
The underground distribution lines represent the single longest underground electric delivery system in the
United States.
CON EDISON ANNUAL REPORT 2022
19
Transmission Facilities
CECONY’s transmission facilities are located in New York City and Westchester, Orange, Rockland, Putnam and
Dutchess counties in New York State. At December 31, 2022, the company owned or jointly owned 569 miles of
overhead circuits operating at 138, 230, 345 and 500 kV and 755 miles of underground circuits operating at 69, 138
and 345 kV. The company’s 40 transmission substations and 63 area stations are supplied by circuits operated at
69 kV and above. CECONY’s transmission facilities interconnect with those of National Grid, Central Hudson Gas &
Electric Corporation, O&R, New York State Electric & Gas, Connecticut Light & Power Company, Long Island Power
Authority, NYPA and Public Service Electric and Gas Company.
Generating Facilities
CECONY’s electric generating facilities consist of plants located in Manhattan whose primary purpose is to produce
steam for the company's steam business. The facilities have a combined electric nameplate capacity of
approximately 780 MW. The company expects to have sufficient amounts of gas and fuel oil available in 2023 for
use in these facilities.
Electric Sales and Deliveries
CECONY delivers electricity to its full-service customers who purchase electricity from the company. Under the
company's retail choice program, CECONY also delivers electricity to its customers who choose to purchase
electricity from other load serving entities. In addition, the company delivers electricity to state and municipal
customers of NYPA.
The company charges all customers in its service area for the delivery of electricity. The company generally
recovers, on a current basis, the cost of the electricity that it buys and then sells to its full-service customers.
It does not make any margin or profit on the electricity it sells. CECONY’s electric revenues are subject to a
revenue decoupling mechanism. As a result, its electric delivery revenues are generally not affected by changes in
delivery volumes from levels assumed when rates were approved. CECONY’s electric sales and deliveries for the
last five years were:
Electric Energy Delivered (millions of kWh)
CECONY full service customers
Delivery service for retail choice customers
Delivery service to NYPA customers and others
Total Deliveries in Franchise Area
Electric Energy Delivered ($ in millions)
CECONY full service customers
Delivery service for retail choice customers
Delivery service to NYPA customers and others
Other operating revenues
Total Deliveries in Franchise Area
Average Revenue per kWh Sold (Cents)
Residential
Commercial and industrial
Year Ended December 31,
2018
2019
2020
2021
2022
20,452
26,266
10,119
56,837
$4,706
2,624
652
(11)
20,579
24,754
9,821
55,154
$4,535
2,470
644
413
20,544
22,000
9,027
51,571
$4,804
2,391
638
270
20,710
21,549
9,069
51,328
$5,299
2,613
683
211
22,547
21,116
9,357
53,020
$6,192
2,526
715
318
$7,971
$8,062
$8,103
$8,806
$9,751
26.4
19.3
25.3
18.6
26.1
20.2
27.3
23.5
28.8
26.0
For further discussion of the company’s electric operating revenues and its electric results, see “Results of
Operations” in Item 7. For additional segment information, see Note P to the financial statements in Item 8.
Electric Peak Demand
The electric peak demand in CECONY’s service area occurs during the summer air conditioning season.
CECONY’s 2022 service area actual hourly peak demand was 12,424 MW, which occurred on August 9, 2022.
“Design Weather Conditions” for the electric system is a standard to which the actual hourly peak demand is
adjusted for evaluation and planning purposes. Since NYISO-invoked demand reduction programs can only be
called upon under specific circumstances, Design Weather Conditions do not include these programs’ potential
impact. However, the CECONY forecasted hourly peak demand at design conditions does include the impact of
certain demand reduction programs. The company estimates that, under Design Weather Conditions, the 2023
service area hourly peak demand will be 12,990 MW. As of January 2023, the company forecasts an average
annual increase in hourly electric peak demand in its service area at Design Weather Conditions over the next five
20
CON EDISON ANNUAL REPORT 2022
years to be approximately 0.6 percent per year, including the effect of certain electric energy efficiency programs
and the anticipated phase-out of natural gas in certain new construction buildings, including major renovations, in
New York City. See “Environmental Matters – Clean Energy Future,” below. The five-year forecast in peak demand
is used by the company for electric supply planning purposes.
Electric Supply
Most of the electricity sold by CECONY to its full-service customers in 2022 was purchased under firm power
contracts or through the wholesale electricity market administered by the NYISO. The company expects that these
resources will again be adequate to meet the requirements of its customers in 2023. The company plans to meet its
continuing obligation to supply electricity to its full-service customers through a combination of electricity purchased
under contracts, purchased through the NYISO’s wholesale electricity market, or generated from its electricity
generating facilities. For information about the company’s contracts for electric generating capacity, see Notes I and
Q to the financial statements in Item 8. To reduce the volatility of its full-service customers’ electric energy costs, the
company has contracts to purchase electric energy and enters into derivative transactions to hedge the costs of a
portion of its expected purchases under these contracts and through the NYISO’s wholesale electricity market.
CECONY owns generating stations in New York City associated primarily with its steam system. The generating
stations have a combined electric nameplate capacity of approximately 780 MW. For information about electric
generating capacity owned by the company, see “Electric Operations – Electric Facilities – Generating Facilities,”
above.
In general, the Utilities recover their costs of purchasing power for full-service customers, including the cost of
hedging purchase prices, pursuant to rate provisions approved by the state public utility regulatory authority having
jurisdiction. See “Financial and Commodity Market Risks – Commodity Price Risk” in Item 7 and “Recoverable
Energy Costs” in Note A to the financial statements in Item 8.
CECONY monitors the adequacy of the electric capacity resources and related developments in its service area,
and works with other parties on long-term resource adequacy within the framework of the NYISO reliability planning
process. The NYISO process includes obligations on transmission owners (such as CECONY) to construct facilities
that may be needed for system reliability if the market does not solve a reliability need identified by the NYISO. See
“New York Independent System Operator,” above. In a July 1998 order, the NYSPSC indicated that it “agree(s)
generally that CECONY need not plan on constructing new generation as the competitive market develops,” but
considers “overly broad” and did not adopt CECONY’s request for a declaration that, solely with respect to providing
generating capacity, it will no longer be required to engage in long-range planning to meet potential demand and, in
particular, that it will no longer have the obligation to construct new generating facilities, regardless of the market
price of capacity.
In 2019, the New York State Department of Environmental Conservation issued regulations that may require the
retirement or seasonal unavailability of fossil-fueled electric generating units owned by CECONY and others in New
York City. Compliance with the rule would impact approximately 1,400 MW of generating units in CECONY's service
territory, of which 54 MW are owned by CECONY. Two CECONY units, Hudson Avenue GT 3 and GT 5 (33 MW
nameplate) were retired in November 2022. In January 2021, CECONY updated its Local Transmission Plan (LTP)
to address identified reliability needs on its local system resulting from the regulation through the construction of
three transmission projects, the Reliable Clean City (RCC) projects. In April 2021, the NYSPSC approved
CECONY’s December 2020 petition to recover $780 million of costs to construct the RCC projects to solve the local
reliability needs. NYISO’s 2022 Reliability Needs Assessment concluded that, while reliability margins are sufficient
statewide through year 2032, the margins within New York City are very narrow in 2025. NYISO continues to
monitor system reliability margins and CECONY would propose solutions in a future LTP if needs arise in its service
territory.
Gas Operations
Gas Facilities
CECONY’s capitalized costs for utility plant, net of accumulated depreciation, for gas facilities, which are primarily
distribution facilities, were $10,567 million and $9,748 million at December 31, 2022 and 2021, respectively.
Natural gas is delivered by pipeline to CECONY at various points in or near its service territory and is distributed to
customers by the company through an estimated 4,359 miles of mains and 377,741 service lines. The company
owns a natural gas liquefaction facility and storage tank at its Astoria property in Queens, NY. The plant can store
1,062 MDt of which a maximum of about 240 MDt can be withdrawn per day. The company has approximately 1,226
MDt of additional natural gas storage capacity available to it at a field in upstate NY, owned and operated by
Honeoye Storage Corporation, a corporation 71.2 percent owned by CET and 28.8 percent owned by CECONY.
CON EDISON ANNUAL REPORT 2022
21
Gas Sales and Deliveries
CECONY delivers gas to its full-service customers who purchase gas from the company. The company generally
recovers the cost of the gas that it buys and then sells to its full-service customers. It does not make any margin or
profit on the gas it sells. Under the company's retail choice program, CECONY also delivers gas to its customers
who choose to purchase gas from other suppliers. CECONY’s gas delivery revenues are subject to a weather
normalization clause and a revenue decoupling mechanism. As a result, its gas delivery revenues are generally not
affected by changes in delivery volumes from levels assumed when rates were approved. CECONY’s gas sales and
deliveries for the last five years were:
Gas Delivered (MDt)
Firm sales
Full service
Delivery service for firm retail choice customers
Total Firm Sales
Interruptible sales (a)
Total Gas Delivered to CECONY Customers
Transportation of customer-owned gas
NYPA
Other (mainly generating plants and interruptible transportation)
Off-system sales
Total Sales
Gas Delivered ($ in millions)
Firm sales
Full service
Delivery service for firm retail choice customers
Total Firm Sales
Interruptible sales
Total Gas Delivered to CECONY Customers
Transportation of customer-owned gas
NYPA
Other (mainly generating plants and interruptible transportation)
Other operating revenues (mainly regulatory amortizations)
Total Sales
Average Revenue per Dt Sold
Residential
General
Year Ended December 31,
2018
2019
2020
2021
2022
92,305
82,472
87,637
81,710
174,777
169,347
7,351
9,903
182,128
179,250
78,515
76,614
155,129
8,482
163,611
81,637
76,765
85,246
75,172
158,402
160,418
5,927
6,098
164,329
166,516
34,079
39,643
41,577
43,094
45,085
93,346
195
72,712
12
70,537
12
67,871
12
72,448
12
309,748
291,617
275,737
275,306
284,061
$1,356
$1,327
$1,229
$1,473
$1,850
595
1,951
40
1,991
2
57
28
593
1,920
42
1,962
2
54
114
649
1,878
27
1,905
2
55
74
704
2,177
29
2,206
2
59
111
798
2,648
51
2,699
2
64
159
$2,078
$2,132
$2,036
$2,378
$2,924
$16.71
$11.31
$17.33
$11.55
$18.59
$10.77
$20.71
$13.67
$24.67
$17.17
(a)
Includes 3,326, 5,484, 3,510, 1,920 and 2,015 MDt for 2018, 2019, 2020, 2021 and 2022, respectively, which are also reflected in delivery
service for firm retail choice customers and other.
For further discussion of the company’s gas operating revenues and its gas results, see “Results of Operations” in
Item 7. For additional segment information, see Note P to the financial statements in Item 8.
Gas Peak Demand
The gas actual peak day demand for firm gas customers in CECONY’s service area occurs during the winter
heating season and during the winter of 2022/2023 (through January 31, 2023) occurred on December 24, 2022
when the firm gas customers' demand reached approximately 1,261 MDt. “Design Weather Conditions” for the gas
system is a standard to which the actual peak demand is adjusted for evaluation and planning purposes. The
company estimates that, under Design Weather Conditions, the 2023/2024 service area peak day demand for firm
gas customers will be 1,684 MDt. The forecasted peak day demand for firm gas customers at design conditions
does not include gas used by interruptible gas customers including electric and steam generating stations. As of
January 2023, the company forecasts an average annual increase of the gas peak day demand for firm gas
customers over the next five years at design conditions to be approximately 1.0 percent in its service area, including
the effect of certain gas energy efficiency programs and the anticipated phase-out of natural gas in certain new
construction buildings, including major renovations, in New York City. See “Environmental Matters – Clean Energy
Future,” below. The five-year forecast in peak demand is used by the company for gas supply planning purposes.
22
CON EDISON ANNUAL REPORT 2022
In March 2019, due to gas supply constraints, CECONY established a temporary moratorium on new applications
for firm gas service in most of Westchester County. In July 2020, CECONY filed a gas planning analysis with the
NYSPSC that stated the moratorium could be lifted when increased pipeline capacity is achieved upon completion
of Tennessee Gas Pipeline’s East 300 Upgrade Project (the East 300 Upgrade Project) or peak demand is reduced
through efficiency and other demand side reductions to a level that would enable CECONY to lift the moratorium.
The East 300 Upgrade Project would involve modifying two existing compressor stations in Pennsylvania and NJ
and construction of one new compressor station in NJ. In April 2022, FERC issued a certificate of public
convenience and necessity that authorizes Tennessee Gas Pipeline to construct and operate the East 300 Upgrade
Project. In October 2022 and February 2023, FERC approved Tennessee Gas Pipeline's requests to begin
construction activities for: (1) the existing compressor station in Pennsylvania and the new compressor station in
NJ and (2) the existing compressor station in NJ, respectively. Tennessee Gas Pipeline’s East 300 Upgrade Project
is expected to be completed by November 2023.
CECONY’s gas planning analysis also stated that the company is monitoring a gas supply constraint for the New
York City portion of its service territory. In May 2022, the NYSPSC issued orders on gas planning and moratorium
management. The orders set forth a schedule for filing future gas planning analyses and the process for initiating,
operating and lifting a natural gas moratorium.
Gas Supply
CECONY and O&R have combined their gas requirements, and contracts to meet those requirements, into a single
portfolio. The combined portfolio is administered by, and related management services are provided by, CECONY
(for itself and as agent for O&R) and costs are allocated between the Utilities in accordance with provisions
approved by the NYSPSC. See Note U to the financial statements in Item 8.
Charges from suppliers for the firm purchase of gas, which are based on formulas or indexes or are subject to
negotiation, are generally designed to approximate market prices. The Utilities have contracts with interstate
pipeline companies for the purchase of firm transportation from upstream points where gas has been purchased to
the Utilities’ distribution systems, and for upstream storage services. Charges under these transportation and
storage contracts are approved by the FERC. The Utilities are required to pay certain fixed charges under the
supply, transportation and storage contracts whether or not the contracted capacity is actually used. These fixed
charges amounted to approximately $385.7 million in 2022, including $340.2 million for CECONY. See “Contractual
Obligations,” below. At December 31, 2022, the contracts were for various terms extending to 2025 for supply and
2043 for transportation and storage. In addition, the Utilities purchase gas on the spot market and contract for
interruptible gas transportation. See “Recoverable Energy Costs” in Note A, Note Q and Note U to the financial
statements in Item 8.
Steam Operations
Steam Facilities
CECONY’s capitalized costs for utility plant, net of accumulated depreciation, for steam facilities, including steam's
portion of the steam-electric generation facilities, were $1,962 million and $1,924 million at December 31, 2022 and
2021, respectively. See "CECONY – Electric Operations – Electric Facilities," above.
CECONY generates steam at one steam-electric generating station and four steam-only generating stations and
distributes steam to its customers through approximately 106 miles of transmission, distribution and service piping.
CON EDISON ANNUAL REPORT 2022
23
Steam Sales and Deliveries
CECONY’s steam sales and deliveries for the last five years were:
Steam Sold (MMlb)
General
Apartment house
Annual power
Total Steam Delivered to CECONY Customers
Steam Sold ($ in millions)
General
Apartment house
Annual power
Other operating revenues
Total Steam Delivered to CECONY Customers
Average Revenue per Mlb Sold
Year Ended December 31,
2018
2019
2020
2021
2022
593
6,358
14,811
21,762
$30
174
441
(14)
$631
$29.64
536
5,919
13,340
19,795
$27
160
395
45
445
5,131
10,977
16,553
$23
136
321
28
504
5,013
11,367
16,884
$25
137
340
30
513
5,122
11,792
17,427
$27
155
391
20
$627
$29.40
$508
$29.00
$532
$29.73
$593
$32.88
For further discussion of the company’s steam operating revenues and its steam results, see “Results of
Operations” in Item 7. For additional segment information, see Note P to the financial statements in Item 8.
Steam Peak Demand and Capacity
The steam actual hourly peak demand in CECONY’s service area occurs during the winter heating season and
during the winter of 2022/2023 (through January 31, 2023) occurred on December 24, 2022 when the actual hourly
demand reached approximately 6.7 MMlb per hour. “Design Weather Conditions” for the steam system is a standard
to which the actual hourly peak demand is adjusted for evaluation and planning purposes. The company’s estimate
for the winter of 2023/2024 hourly peak demand of its steam customers is about 7.9 MMlb per hour under Design
Weather Conditions. The company forecasts an average annual decrease in steam hourly peak demand in its
service area at Design Weather Conditions over the next five years to be approximately 0.1 percent.
On December 31, 2022, the steam system was capable of delivering approximately 11.4 MMlb of steam per hour,
and CECONY estimates that the system will have the same capability in the 2023/2024 winter.
Steam Supply
31 percent of the steam produced by CECONY in 2022 was supplied by the company’s steam-only generating
assets; 49 percent was produced by the company’s steam-electric generating assets, where steam and electricity
are primarily cogenerated; and 20 percent was purchased under an agreement with Brooklyn Navy Yard
Cogeneration Partners L.P.
O&R
Electric Operations
Electric Facilities
O&R’s capitalized costs for utility plant, net of accumulated depreciation, for distribution facilities were $1,215 million
and $1,178 million at December 31, 2022 and 2021, respectively. For its transmission facilities, the costs for utility
plant, net of accumulated depreciation, were $307 million and $297 million at December 31, 2022 and 2021,
respectively.
O&R and RECO own, in whole or in part, transmission and distribution facilities which include 543 circuit miles of
transmission lines, 15 transmission substations, 63 distribution substations, 87,951 in-service line transformers,
3,869 pole miles of overhead distribution lines and 2,320 miles of underground distribution lines. O&R’s
transmission system is part of the NYISO system except that portions of RECO’s system are located within the
transmission area controlled by PJM.
Electric Sales and Deliveries
O&R delivers electricity to its full-service customers who purchase electricity from the company. Under the
company's retail choice program, O&R also delivers electricity to its customers who purchase electricity from load
serving entities.
The company charges all customers in its service area for the delivery of electricity. O&R generally recovers, on a
current basis, the cost of the electricity that it buys and then sells to its full-service customers. It does not make any
margin or profit on the electricity it sells. O&R’s NY electric revenues (which accounted for 78 percent of O&R’s
24
CON EDISON ANNUAL REPORT 2022
electric revenues in 2022) are subject to a revenue decoupling mechanism. As a result, O&R’s NY electric delivery
revenues are generally not affected by changes in delivery volumes from levels assumed when rates were
approved. Effective July 2021, the majority of O&R’s electric distribution revenues in NJ are subject to a
conservation incentive program, as a result of which distribution revenues are generally not affected by changes in
delivery volumes from levels assumed when rates were approved. O&R’s electric sales and deliveries for the last
five years were:
Electric Energy Delivered (millions of kWh)
Total deliveries to O&R full service customers
Delivery service for retail choice customers
Total Deliveries in Franchise Area
Electric Energy Delivered ($ in millions)
Total deliveries to O&R full service customers
Delivery service for retail choice customers
Other operating revenues
Total Deliveries in Franchise Area
Average Revenue Per kWh Sold (Cents)
Residential
Commercial and Industrial
Year Ended December 31,
2018
2019
2020
2021
2022
2,643
2,974
5,617
$453
201
(12)
$642
19.1
14.4
2,617
2,885
5,502
$429
191
14
$634
18.2
13.9
2,712
2,622
5,334
$442
186
1
$629
17.8
14.2
2,702
2,839
5,541
$453
223
5
$681
19.0
13.0
2,973
2,580
5,553
$576
198
(1)
$773
21.5
15.6
For further discussion of the company’s electric operating revenues and its electric results, see “Results of
Operations” in Item 7. For additional segment information, see Note P to the financial statements in Item 8.
Electric Peak Demand
The electric peak demand in O&R’s service area occurs during the summer air conditioning season. The weather
during the summer of 2022 was cooler than design conditions. O&R’s 2022 service area actual hourly peak demand
was 1,457 MW, which occurred on August 9, 2022. “Design Weather Conditions” for the electric system is a
standard to which the actual hourly peak demand is adjusted for evaluation and planning purposes. Since NYISO-
invoked demand reduction programs can only be called upon under specific circumstances, Design Weather
Conditions do not include these programs’ potential impact. However, the O&R forecasted hourly peak demand at
design conditions does include the impact of certain demand reduction programs. The company estimates that,
under Design Weather Conditions, the 2023 service area peak demand will be 1,545 MW. The company forecasts
an average annual increase in hourly electric peak demand in its service area at design conditions over the next five
years to be approximately 0.4 percent, including the effect of certain electric energy efficiency programs and
distributed generation additions. The five-year forecast in peak demand is used by the company for electric supply
planning purposes.
Electric Supply
The electricity O&R sold to its full-service customers in 2022 was purchased under firm power contracts or through
the wholesale electricity market. The company expects that these resources will again be adequate to meet the
requirements of its customers in 2023. O&R does not own any electric generating capacity. The company plans to
meet its continuing obligation to supply electricity to its customers through a combination of electricity purchased
under contracts or purchased through the wholesale electricity market. To reduce the volatility of its customers’
electric energy costs, the company has contracts to purchase electric energy and enters into derivative transactions
to hedge the costs of a portion of its expected purchases. For information about the company’s contracts, see Note
Q to the financial statements in Item 8.
In general, the Utilities recover their costs of purchasing power for full service customers, including the cost of
hedging purchase prices, pursuant to rate provisions approved by the state public utility regulatory authority having
jurisdiction. See “Financial and Commodity Market Risks – Commodity Price Risk,” in Item 7 and “Recoverable
Energy Costs” in Note A to the financial statements in Item 8. From time to time, certain parties have petitioned the
NYSPSC to review these provisions, the elimination of which could have a material adverse effect on the
Companies’ financial position, results of operations or liquidity.
Gas Operations
Gas Facilities
O&R’s capitalized costs for utility plant, net of accumulated depreciation for gas facilities, which are primarily
distribution facilities, were $759 million and $725 million at December 31, 2022 and 2021, respectively. Natural gas
CON EDISON ANNUAL REPORT 2022
25
is delivered by pipeline to O&R at various points in or near its service territory and is distributed to customers by the
company through an estimated 1,887 miles of mains and 106,855 service lines.
Gas Sales and Deliveries
O&R delivers gas to its full-service customers who purchase gas from the company. O&R generally recovers the
cost of the gas that it buys and then sells to its full-service customers. It does not make any margin or profit on the
gas it sells. Under the company's retail choice program, O&R also delivers gas to its customers who choose to
purchase gas from other suppliers. O&R’s gas delivery revenues are subject to a weather normalization clause and
to a revenue decoupling mechanism. As a result, its gas delivery revenues are generally not affected by changes in
delivery volumes from levels assumed when rates were approved. O&R’s gas sales and deliveries for the last five
years were:
Gas Delivered (MDt)
Firm sales
Full service
Delivery service for firm retail choice customers
Total Firm Sales
Interruptible sales
Total Gas Delivered to O&R Customers
Transportation of customer-owned gas
Sales for resale
Sales to electric generating stations
Off-system sales
Total Sales
Gas Delivered ($ in millions)
Firm sales
Full service
Delivery service for firm retail choice customers
Total Firm Sales
Interruptible Sales
Total Gas Delivered to O&R Customers
Transportation of customer-owned gas
Sales to electric generating stations
Other operating revenues
Total Sales
Average Revenue Per Dt Sold
Residential
General
Year Ended December 31,
2018
2019
2020
2021
2022
12,050
9,950
22,000
3,746
25,746
959
1
15
12,537
9,459
21,996
3,668
25,664
914
4
1
11,877
8,271
20,148
3,633
23,781
658
59
19
13,998
7,584
21,582
3,821
25,403
468
26
81
15,353
6,396
21,749
3,911
25,660
673
10
73
26,721
26,583
24,517
25,978
26,416
Year Ended December 31,
2018
2019
2020
2021
2022
$166
78
244
6
250
—
(1)
$249
$161
63
224
6
230
—
29
$259
$141
62
203
6
209
—
24
$233
$190
55
245
6
251
—
9
$260
$245
45
290
6
296
—
16
$312
$14.22
$11.80
$13.32
$10.68
$12.40
$9.51
$14.09
$11.24
$16.49
$13.62
For further discussion of the company’s gas operating revenues and its gas results, see “Results of Operations” in
Item 7. For additional segment information, see Note P to the financial statements in Item 8.
Gas Peak Demand
The gas actual peak day demand for firm sales customers in O&R’s service area occurs during the winter heating
season and during the winter of 2022/2023 (through January 31, 2023) occurred on December 24, 2022 when the
firm sales customers' demand reached approximately 185 MDt. “Design Weather Conditions” for the gas system is
a standard to which the actual peak demand is adjusted for evaluation and planning purposes. The company
estimates that, under Design Weather Conditions, the 2023/2024 service area peak day demand for firm sales
customers will be 241 MDt. The forecasted peak day demand at design conditions does not include gas used by
interruptible gas customers including electric generating stations. The company forecasts an average annual
decrease of the gas peak day demand for firm sales customers over the next five years at design conditions to be
approximately 0.1 percent in its service area, including the effect of certain gas energy efficiency programs.
The five-year forecast in peak demand is used by the company for gas supply planning purposes.
26
CON EDISON ANNUAL REPORT 2022
Gas Supply
O&R and CECONY have combined their gas requirements and purchase contracts to meet those requirements into
a single portfolio. See “CECONY – Gas Operations – Gas Supply” above.
CON EDISON ANNUAL REPORT 2022
27
Clean Energy Businesses
The following table provides information about the Clean Energy Businesses' renewable electric projects that are in
operation and/or in construction at December 31, 2022. Unless otherwise noted, the projects listed in the table
below or the Clean Energy Businesses' equity interest in these projects have been pledged as security for project
debt financing. In October 2022, Con Edison entered into a purchase and sale agreement pursuant to which Con
Edison agreed to sell the Clean Energy Businesses to RWE Renewables America, LLC, a subsidiary of RWE
Aktiengesellschaft. The Clean Energy Businesses were classified as held for sale as of December 31, 2022. See
“Assets and Liabilities Held for Sale” in Note A and Note X to the financial statements in Item 8.
Generating
Capacity
(MW AC)
Power
Purchase
Agreement
(PPA) Term
(In Years) (a)
Actual
In-Service/
Acquisition
Date
State
PPA Counterparty
Project Name
Utility Scale
Solar
PJM assets (c)
New England assets (c)
California Solar
Mesquite Solar 1
Copper Mountain Solar 2
Copper Mountain Solar 3
California Solar 2
Texas Solar 4
Texas Solar 5
Texas Solar 7
California Solar 3
Upton Solar
California Solar 4
Copper Mountain Solar 1
Copper Mountain Solar 4 (d)
Mesquite Solar 2 (d)
Mesquite Solar 3 (d)
Great Valley Solar (d)
Water Strider Solar (d)
Battle Mountain Solar/Battery Energy
Storage System (d)
Copper Mountain Solar 5 (d)
Other (c)
Total Solar
Wind
Broken Bow II
Wind Holdings
Adams Rose Wind
Other (c)
Total Wind
Total MW (AC) in Operation
Total MW (AC) in Construction (c)
Total MW (AC) Utility Scale
Behind the Meter
Total MW (AC) in Operation (c)
Total MW (AC) in Construction (c)
Total MW Behind the Meter
73
24
110
165
150
255
80
40
100
112
110
158
240
58
94
100
150
200
80
101
250
26
2,676
75
180
23
51
329
3,005
293
3,298
69
—
69
(b)
2011/2013
Various
25
20
25
20
20
25
25
25
20
25
20
12
20
18
23
17
20
25
25
2011/2017
2012/2013
2013
2013/2015
2014/2015
2014/2016
2014
2015
2016
2016/2017
2017
2017/2018
2018
2018
2018
2018
2018
2021
2021
2021
NJ/PA
MA/RI
CA
AZ
NV
NV
CA
TX
TX
TX
CA
TX
CA
NV
NV
AZ
AZ
Various
Various
PG&E
PG&E
PG&E
SCPPA
SCE/PG&E
City of San Antonio
City of San Antonio
City of San Antonio
SCE/PG&E
City of Austin
SCE
PG&E
SCE
SCE
WAPA (U.S. Navy)
CA MCE/SMUD/PG&E/SCE
VA
NV
NV
VEPCO
SPP
NPC
Various
Various
Various
Various
25
Various
7
Various
2014
Various
2016
Various
NE
SD/MT
MN
Various
NPPD
NWE/Basin Electric
Dairyland
Various
(a) Represents PPA contractual term or remaining term from the date of acquisition.
(b) Solar renewable energy credit hedges are in place, in lieu of PPAs, through 2025.
(c) Projects have generally not been pledged as security for project debt financing.
(d) Projects are financed with tax equity. See Note S to the financial statements in Item 8.
28
CON EDISON ANNUAL REPORT 2022
Renewable Electric Generation
The Clean Energy Businesses develop, own and operate renewable energy infrastructure projects. In December
2018, the Clean Energy Businesses acquired Sempra Solar Holdings, LLC to expand the company's renewable
energy asset portfolio. The Clean Energy Businesses focus their efforts on utility scale renewable electric projects.
The output of most of the projects is sold under long-term power purchase agreements (PPA) with utilities and
municipalities. The following table shows the generating capacity (MW AC) of the Clean Energy Businesses' utility
scale renewable electric projects in operation at the end of the last five years:
Generating Capacity (MW AC)
Renewable electric projects
2018
2,588
2019
2,628
2020
2,809
2021
3,061
2022
3,074
Renewable electric volumes produced by utility scale assets at the end of the last five years were:
Description
Renewable electric projects
Solar
Wind
Total
Millions of kWh Produced
For the Years Ended December 31,
2018
2,680
1,074
3,754
2019
5,506
1,333
6,839
2020
5,699
1,425
7,124
2021
6,219
1,300
7,519
2022
6,926
1,280
8,206
Energy-Related Products and Services
The Clean Energy Businesses provide services to manage the dispatch, fuel requirements and risk management
activities for 12,433 MW of generating plants and merchant transmission in the northeastern United States owned
by unrelated parties, manage energy supply assets leased from others and provide wholesale hedging and risk
management services to renewable electric projects owned by their subsidiaries.
The Clean Energy Businesses also provide energy-efficiency services to government and commercial customers.
The services include the design and installation of lighting retrofits, high-efficiency heating, ventilating and air
conditioning equipment and other energy saving technologies.
For information about the Clean Energy Businesses' results, see "Results of Operations" in Item 7 and Note P to the
financial statements in Item 8.
CON EDISON ANNUAL REPORT 2022
29
Con Edison Transmission
CET owns a 45.7 percent interest in New York Transco LLC (NY Transco). Affiliates of certain other New York
transmission owners own the remaining interests.
NY Transco's Transmission Owner Transmission Solutions (TOTS) projects were approved by the NYSPSC in
October 2013. In April 2015, the FERC issued an order granting certain transmission incentives for the NY Transco
TOTS projects. In March 2016, the FERC approved a November 2015 settlement agreement that provides, in
relation to the TOTS projects described above, a 10 percent return on common equity (which is comprised of 9.5
percent base return on equity plus an additional 50 basis points) and a maximum actual common equity ratio of 53
percent. The revenues for these TOTS projects costs are collected by the NYISO and allocated across NYISO
transmission customers in NY State, with 63 percent allocated to load serving entities in the CECONY and O&R
service areas.
In December 2015, the NYSPSC issued an order in its competitive proceeding to select AC transmission projects
that would relieve transmission congestion between upstate and downstate. The NYSPSC determined that there
was a public policy need for new transmission to address congestion and directed the NYISO, under its FERC-
approved public policy planning process, to request developers to submit transmission project proposals for two
segments of the transmission system. In April 2019, the NYISO selected a project that was jointly proposed by
National Grid and NY Transco for one of the segments ($600 million estimated cost, excluding certain
interconnection costs) that would increase transmission capacity by 1,850 MW between upstate and downstate
when combined with another developer’s project selected by the NYISO for the other segment. The NYISO and
National Grid/NY Transco entered into an agreement for the development and operation of the project, referred to
as the New York Energy Solution (NYES) project, whereby NYES would be solely owned by NY Transco.
Construction is underway and the project is scheduled for entry into service by December 2023. In November 2017,
FERC approved a settlement agreement with respect to the National Grid/NY Transco project that provides for a
10.65 percent return on common equity (which is comprised of a 9.65 percent base ROE, with 100 basis points
added for congestion reduction and a cost containment mechanism applicable to certain capital costs) and a
maximum actual common equity ratio of 53 percent. The interconnection costs of the awarded project segment
include network upgrades identified by the NYISO and NYSPSC that earn the same base ROE, with a 50-basis
point adder. Revenues for the NYES project are collected by the NYISO including 100 percent of construction work-
in-progress, and are allocated across NYISO transmission customers in NY State with 84 percent allocated to load
serving entities in the CECONY and O&R service areas.
CET, through its subsidiaries, owns a 71.2 percent interest in Honeoye Storage Corporation (Honeoye), a company
that operates a gas storage facility in upstate NY and in which CECONY owns the remaining interest. A goodwill
impairment loss of $7 million was recorded related to CET’ and CECONY’s investment in Honeoye Storage
Corporation for the year ended December 31, 2021, of which $5 million was attributed to CET. See Note K to the
financial statements in Item 8.
In addition, CET owns a 9.6 percent interest (that is expected to be reduced to 8.0 percent based on the current
project cost estimate and CET’ previous capping of its cash contributions to the joint venture) in Mountain Valley
Pipeline, LLC (MVP). MVP is a joint venture with four other partners to construct and operate a proposed 300-mile
gas transmission project in WV and VA. CET recorded pre-tax impairment losses on its interest in MVP of $231
million ($162 million after-tax) and $320 million ($223 million after-tax) for the years ended December 31, 2021 and
December 31, 2020, respectively. In May 2022, the operator of the Mountain Valley Pipeline indicated it plans to
pursue new permits and is targeting a full in-service date during the second half of 2023 at a total project cost of
approximately $6,600 million, excluding allowance for funds used during construction. In June 2022, the Mountain
Valley Pipeline joint venture filed a request with the FERC for, and in August 2022, the FERC granted, a four-year
extension of time to complete the project by October 2026. At December 31, 2022, CET’s carrying value of its
investment in MVP was $111 million and CET’s cash contributions to the joint venture amounted to $530 million.
See "Investments - 2020 and 2021 Partial Impairments of Investment in Mountain Valley Pipeline, LLC (MVP)" in
Note A to the financial statements in Item 8.
During 2021, CET sold its 50 percent interest in Stagecoach Gas Services LLC (Stagecoach), a gas pipeline and
storage business located in northern PA and southern NY for $629 million. CET recorded pre-tax impairment losses
of $212 million ($147 million after-tax). See "Investments - Partial Impairment of Investment in Stagecoach Gas
Services" in Note A and Note W to the financial statements in Item 8.
For information about Con Edison Transmission's results, see "Results of Operations" in Item 7 and Note P to the
financial statements in Item 8.
30
CON EDISON ANNUAL REPORT 2022
Capital Requirements and Resources
Capital Requirements
The following table contains the Companies’ capital requirements for the years 2020 through 2022 and their current
estimate of amounts for 2023 through 2025:
(Millions of Dollars)
CECONY (a)(b)
Electric
Gas
Steam
Sub-total
O&R
Electric
Gas
Sub-total
Con Edison Transmission
Clean Energy Businesses (c)
Total capital investments
Retirement of long-term securities
Con Edison – parent company
CECONY
O&R
Clean Energy Businesses (c)
Total retirement of long-term securities
Total capital requirements
2020
Actual
2021
2022
2023
2024
2025
Estimate
$2,080
$2,189
$2,522
$3,168
1,044
122
3,246
159
61
220
3
616
1,126
103
3,418
147
70
217
31
298
1,128
108
3,758
167
76
243
65
399
1,128
103
4,399
200
76
276
58
76
$3,267
1,155
119
4,541
$3,347
1,120
135
4,602
218
81
299
6
—
275
80
355
6
—
4,085
3,964
4,465
4,809
4,846
4,963
3
350
—
165
518
$4,603
1,178
640
—
141
1,959
$5,923
293
—
—
147
440
650
—
—
25
675
—
250
—
—
250
—
—
—
—
—
$4,905
$5,484
$5,096
$4,963
(a) CECONY’s capital investments for environmental protection facilities and related studies were $491 million, $731 million and $733 million in
2020, 2021 and 2022, respectively, and are estimated to be $568 million in 2023.
(b) Amounts shown do not include amounts for the energy efficiency, demand reduction and combined heat and power programs.
(c) Estimates shown for 2023 include estimates through the anticipated closing date of the sale of the Clean Energy Businesses, which were
classified as held for sale as of December 31, 2022. See “Assets and Liabilities Held For Sale" in Note A and Note X to the financial
statements in Item 8.
CON EDISON ANNUAL REPORT 2022
31
Contractual Obligations
The following table summarizes the Companies’ material obligations at December 31, 2022 to make payments
pursuant to contracts. Long-term debt, operating and capital lease obligations and other noncurrent liabilities are
included on their balance sheets. Electricity and gas purchase agreements (for which undiscounted future annual
payments are shown) are described in the notes to the financial statements. The Clean Energy Businesses were
classified as held for sale as of December 31, 2022. Accordingly, the long-term debt and operating lease obligations
of the Clean Energy Businesses are shown within "Liabilities Held for Sale" on Con Edison's consolidated balance
sheet as of December 31, 2022.
(Millions of Dollars)
Long-term debt (Statement of Capitalization)
CECONY
O&R
Clean Energy Businesses (a)
Parent
Interest on long-term debt (b)
Total long-term debt, including interest
Finance lease obligations (Note J)
CECONY
O&R
Total capital lease obligations
Operating leases (Note J)
CECONY
O&R
Clean Energy Businesses (c)
Total operating leases
Purchase obligations
Electricity power purchase agreements – Utilities (Note I)
CECONY
Energy
Capacity (d)
Total CECONY
O&R
Energy and Capacity (d)
Total electricity and power purchase agreements – Utilities
Total
$19,275
1,075
2,666
650
19,706
43,372
1
1
2
739
2
582
1,323
2,072
766
2,838
79
2,917
Natural gas supply, transportation, and storage contracts – Utilities (Note I) (e)
CECONY
Natural gas supply
Transportation and storage
Total CECONY
O&R
Natural gas supply
Transportation and storage
Total O&R
Total natural gas supply, transportation and storage contracts
Other purchase obligations
CECONY (f)
O&R (f)
Clean Energy Businesses (g)
Total other purchase obligations
Total
611
4,806
5,417
77
694
771
6,188
3,887
190
52
4,129
$57,931
Payments Due by Period
1 year
or less
Years
2 & 3
Years
4 & 5
After 5
years
—
—
353
650
1,015
2,018
—
—
—
64
—
19
83
139
121
260
49
309
603
412
1,015
76
59
135
1,150
1,164
110
52
1,326
$4,886
$250
—
463
—
1,932
2,645
1
—
1
128
2
37
167
264
153
417
30
447
8
912
920
1
130
131
1,051
599
27
—
626
$4,937
$600
$18,425
80
281
—
1,883
2,844
—
—
—
128
—
34
162
272
102
374
—
374
—
720
720
—
103
103
823
1,753
10
—
1,763
$5,966
995
1,569
—
14,876
35,865
—
1
1
419
—
492
911
1,397
390
1,787
—
1,787
—
2,762
2,762
—
402
402
3,164
371
43
—
414
$42,142
(a) Amounts reclassified as Liabilities Held For Sale on Con Edison's balance sheet. See "Assets and Liabilities Held for Sale" in Note A and
(b)
Note X to the financial statements in Item 8
Includes interest on variable rate debt calculated at rates in effect at December 31, 2022. Amounts include $120 million, $160 million,
$128 million, and $379 million of interest due under 1 year, 2 -3 years, 4-5 years, and over 5 years, respectively, reclassified as Liabilities
Held For Sale on Con Edison's balance sheet. See "Assets and Liabilities Held for Sale" in Note A and Note X to the financial statements in
Item 8.
32
CON EDISON ANNUAL REPORT 2022
(c) Amounts reclassified as Liabilities Held For Sale on the balance sheet. See "Assets and Liabilities Held for Sale" in Note A and Note X to
(d)
(e)
the financial statements in Item 8.
Included in these amounts is the cost of minimum quantities of natural gas supply, transportation and storage that the Utilities are obligated
to purchase at both fixed and variable prices.
Included in these amounts is the cost of minimum quantities of energy that the Utilities are obligated to purchase at both fixed and variable
prices.
(f) Amounts shown for other purchase obligations, which reflect capital and operations and maintenance costs incurred by the Utilities in
running their day-to-day operations, were derived from the Utilities’ purchasing system as the difference between the amounts authorized
and the amounts paid (or vouchered to be paid) for each obligation. For many of these obligations, the Utilities are committed to purchase
less than the amount authorized. Payments for the “Other Purchase Obligations” are generally assumed to be made ratably over the term
of the obligations. Long-term Purchase Obligations, which comprises $3,333 million of "Other Purchase Obligations," were derived from the
Utilities' purchasing system by using a method that identifies the remaining purchase obligations. The Utilities believe that unreasonable
effort and expense would be involved to enable them to report their “Other Purchase Obligations” in a different manner.
(g) The Clean Energy Businesses were classified as held for sale as of December 31, 2022. See "Assets and Liabilities Held for Sale," in Note
A and Note X to the financial statements in Item 8. Amounts represent commitments by the Clean Energy Businesses to purchase
minimum quantities of electric energy and capacity, renewable energy certificates, natural gas, natural gas pipeline capacity, energy
efficiency services and construction services. The Clean Energy Businesses have also entered into power purchase agreements for the
sale of power from their renewable electric projects, provisions of which provide for penalties to be paid by the Clean Energy Businesses in
the event certain minimum production quantities are not met. The future minimum production quantities and the amount of the penalties, if
any, are not estimable and are not included in the amounts shown on the table.
The Companies’ commitments to make payments in addition to these contractual commitments include their other
liabilities reflected on their balance sheets, any funding obligations for their pension and other postretirement benefit
plans, financial hedging activities, their collective bargaining agreements and Con Edison’s and the Clean Energy
Business' guarantees of certain obligations. See Notes E, F, Q and “Guarantees” in Note H to the financial
statements in Item 8.
Capital Resources
Con Edison is a holding company that operates only through its subsidiaries and has no material assets other than
its interests in its subsidiaries. Con Edison finances its capital requirements primarily through internally-generated
funds, the sale of its common shares or external borrowings. Con Edison’s ability to make payments on external
borrowings and dividends on its common shares depends on receipt of dividends from its subsidiaries, proceeds
from the sale of additional common shares or its interests in its subsidiaries or additional external borrowings. See
"Con Edison's Ability To Pay Dividends Or Interest Depends On Dividends From Its Subsidiaries" in Item 1A and
Note U to the financial statements in Item 8.
For information about restrictions on the payment of dividends by the Utilities and significant debt covenants, see
Note C to the financial statements in Item 8.
For information on the Companies’ commercial paper program and revolving credit agreements with banks, see
Note D to the financial statements in Item 8.
The Companies require access to the capital markets to fund capital requirements that are substantially in excess of
available internally-generated funds. See “Capital Requirements,” above and "The Companies Require Access To
Capital Markets to Satisfy Funding Requirements” in Item 1A. Each of the Companies believes that it will continue
to be able to access capital, although capital market conditions may affect the timing and cost of the Companies’
financing activities. The Companies monitor the availability and costs of various forms of capital, and will seek to
issue Con Edison common shares and other securities when it is necessary or advantageous to do so. See
“Coronavirus Disease 2019 (COVID-19) Impacts – Liquidity and Financing” in Item 7. For information about the
Companies’ long-term debt and short-term borrowing, see Notes C and D to the financial statements in Item 8.
The Utilities finance their operations, capital requirements and payment of dividends to Con Edison from internally-
generated funds, contributions of equity capital from Con Edison, if any, and external borrowings. See "Liquidity and
Capital Resources" in Item 7.
Con Edison plans to meet its capital requirements for 2023 through 2025 through internally-generated funds, the
anticipated net proceeds from the sale of the Clean Energy Businesses and the issuance of long-term debt and
common equity. See “Capital Requirements and Resources - Capital Requirements," in Item 1. See "Assets Held for
Sale" in Note A and Note X to the financial statements in Item 8 and "Anticipated Sale of the Clean Energy
Business," above. Subject to, and following the closing of the sale of the Clean Energy Businesses, Con Edison
intends to repay $1,250 million of parent company debt in 2023, invest in the Utilities and repurchase up to $1,000
million of its common shares. In anticipation of the proceeds from the pending transaction, Con Edison intends to
forego common equity issuances in 2023 and 2024 and plans on issuing up to $900 million of common equity in
2025. The company's plans also include the issuance of up to $1,400 million of long-term debt at the Utilities in
2023 and approximately $2,600 million in aggregate, including for maturing securities, at the Utilities during 2024
and 2025.
CON EDISON ANNUAL REPORT 2022
33
In 2021, the NYSPSC authorized CECONY, through 2025, to issue up to $4,025 million of debt securities ($1,450
million of which the company had issued as of December 31, 2022). In 2022, the NYSPSC authorized O&R, through
2025, to issue up to $285 million of debt securities ($100 million of which the company had issued as of
December 31, 2022). The NYSPSC also authorized CECONY and O&R for such periods to issue debt securities to
refund existing debt securities of up to $2,500 million and $125 million, respectively. As of December 31, 2022, the
Utilities had not refunded any securities pursuant to these authorizations.
The Clean Energy Businesses, which were classified as held for sale as of December 31, 2022, have financed their
operations and capital requirements primarily with capital contributions and borrowings from Con Edison, internally-
generated funds and external borrowings. See Con Edison's Consolidated Statement of Capitalization in Item 8 and
Note Q to the financial statements in Item 8.
Con Edison Transmission has financed its operations and capital requirements primarily with capital contributions
and borrowings from Con Edison and internally-generated funds. See "Liquidity and Capital Resources" in Item 7.
For each of the Companies, the common equity ratio for the last five years was:
Con Edison
CECONY
Common Equity Ratio
(Percent of total capitalization)
2018
49.0
48.6
2019
49.6
49.2
2020
48.3
47.9
2021
47.4
47.0
2022
50.9
46.9
The credit ratings assigned by Moody’s, S&P and Fitch to the senior unsecured debt and commercial paper of Con
Edison, CECONY and O&R are as follows:
Con Edison
Senior Unsecured Debt
Commercial Paper
CECONY
Senior Unsecured Debt
Commercial Paper
O&R
Senior Unsecured Debt
Commercial Paper
Moody's
Baa2
P-2
Baa1
P-2
Baa2
P-2
S&P
BBB+
A-2
A-
A-2
A-
A-2
Fitch
BBB+
F2
A-
F2
A-
F2
Credit ratings assigned by rating organizations are expressions of opinion and are not recommendations to buy, sell
or hold securities. A credit rating is subject to revision or withdrawal at any time by the assigning rating organization.
Each rating should be evaluated independently of any other rating. See “The Companies Require Access To Capital
Markets To Satisfy Funding Requirements” and “Changes To Tax Laws Could Adversely Affect the Companies” in
Item 1A.
In 2017, the United Kingdom’s Financial Conduct Authority announced that it intends to stop persuading or
compelling banks to submit London Interbank Offered Rates (LIBOR). LIBOR’s administrator ceased publishing
one-week and two-month U.S. Dollar LIBOR immediately after the LIBOR publication on December 31, 2021, and is
scheduled to cease publication of the remaining U.S. Dollar LIBOR tenors immediately after the publication on June
30, 2023.The Companies have been and are continuing to monitor LIBOR-related market, regulatory and
accounting developments. The Companies’ material contracts that reference LIBOR and currently extend beyond
2022 include their $2,200 million credit agreement (see Note D to the financial statements in Item 8). Pursuant to
the credit agreement, the Companies may borrow at interest rates determined with reference to a prime rate, the
federal funds rate or LIBOR. The credit agreement may be amended by the Companies and the administrative
agent to provide for a LIBOR successor rate unless a majority of the lenders do not accept the amendment. In
addition, the Clean Energy Businesses have $1,093 million of variable rate project debt that reference LIBOR and
currently extends beyond 2022 and that allows for an alternate reference rate and associated interest rate swaps
with a notional amount of $982 million (see Note Q to the financial statements in Item 8). Con Edison expects that
the Clean Energy Businesses will be able to agree with project lenders and swap counterparties on the use of an
34
CON EDISON ANNUAL REPORT 2022
alternate reference rate as needed. The Companies do not expect that a discontinuation of LIBOR would have a
material impact on their financial position, results of operations or liquidity.
Environmental Matters
Clean Energy Future
Clean Energy Goals
In 2019, New York State enacted the Climate Leadership and Community Protection Act (CLCPA) that established a
goal of 70 percent of the electricity procured by load serving entities regulated by the NYSPSC to be produced by
renewable energy systems by 2030 and requires the statewide electrical demand system to have zero emissions by
2040. The law also codified state targets for energy efficiency (end-use energy savings of 185 trillion British thermal
units below 2025 energy-use forecast), offshore wind (9,000 megawatts (MW) by 2035), solar (6,000 MW by 2025)
and energy storage (3,000 MW by 2030). In addition, the law established a climate action council. In December
2022, the council approved a final scoping plan containing recommendations for meeting the CLCPA's statewide
greenhouse gas (GHG) emission reduction requirements including measures to reduce emissions by displacing
fossil-fuel fired electricity with renewable electricity, transitioning heating and transportation energy uses to lower
GHG impact fuels (including substantial electrification of those uses), implementing energy efficiency measures and
providing 35 percent - 40 percent of the benefits of CLCPA-related investments to disadvantaged communities. As
required by the law, the New York State Department of Environmental Conservation (NYSDEC) published the 1990
inventory of GHG emissions and adopted regulations establishing statewide GHG emissions limits that are 60
percent of 1990 emissions levels by 2030 and 15 percent of 1990 emissions by 2050. The Utilities are unable to
predict the impact on them of the implementation of this law.
In October 2020, the NYSPSC, in response to the CLCPA, modified its clean energy standard to establish a new
renewable energy credits (RECs) program to support increased renewable energy availability in New York City for
which the costs would be borne by load serving entities across New York State on a volumetric basis. CECONY and
O&R have been required to obtain RECs and zero-emissions credits (ZECs) for their full service customers since
2017. Load serving entities may satisfy their REC obligation by either purchasing RECs acquired through central
procurement by the New York State Energy Research and Development Authority (NYSERDA), by self-supply
through direct purchase of tradable RECs, or by making alternative compliance payments. Load serving entities
purchase ZECs which are only available from NYSERDA at prices determined by the NYSPSC. In April 2022, the
NYSPSC issued an order approving contracts between NYSERDA and two project sponsors selected by NYSERDA
to provide RECs directly to New York City: Clean Path New York and H.Q. Energy Services (U.S.) Inc. The H.Q.
Energy Services project and the Clean Path New York project anticipate in-service dates of 2026 and 2027,
respectively. Both projects have submitted requests to the NYISO to interconnect to CECONY’s high-voltage
transmission system.
Prior to enactment of the CLCPA and its expansion of offshore wind goals, in July 2018, the NYSPSC established a
goal of 2,400 MW of new offshore wind facilities by 2030. As a result of this goal, load serving entities, such as
CECONY and O&R, will be required to purchase offshore wind renewable energy credits (ORECs) from NYSERDA
beginning in 2025 when projects are expected to begin operation. In October 2019, NYSERDA entered into a 25-
year power purchase agreement (PPA) with Equinor Wind US LLC for its 816 MW Empire Wind Project, and a 25-
year PPA with Sunrise Wind LLC for its 880 MW Sunrise Wind Project. In January 2022, NYSERDA expanded its
contract with Empire Wind Project to 1,260 MW and awarded another contract to Equinor Wind US LLC for its 1,230
MW Beacon Wind Project.
In May 2020, the NYSPSC initiated a proceeding implementing the Accelerated Renewable Energy Growth and
Community Benefit Act to align New York State’s electric system with CLCPA goals. In November 2020, NY’s
investor-owned utilities (including the Utilities) and LIPA filed a comprehensive report in this proceeding, identifying
proactive local transmission and distribution investments in their systems to facilitate achieving the goals of the
CLCPA and setting out policy recommendations for how they will identify, prioritize and allocate costs of these and
future such projects going forward. CECONY and O&R identified approximately $4,500 million and $400 million,
respectively, in local transmission investment. In January 2022, the NYSPSC issued an order based on
recommendations from a 2021 power grid study that authorized CECONY to file a comprehensive petition
addressing a proposed clean energy hub in Brooklyn, NY (Brooklyn Clean Energy Hub) that could accommodate
interconnection to offshore wind generation. In April 2022, CECONY filed the petition, seeking cost recovery
approval for the proposed Brooklyn Clean Energy Hub that would connect up to 6,000 MW of offshore wind energy
into the New York City grid at an estimated cost of $1,000 million and an estimated in-service date of 2027. In
December 2022, CECONY supplemented its petition to propose an alternate version that focuses on a 2028
reliability need and has an estimated cost of $810 million. It omits certain elements related to offshore wind
interconnection but provides the flexibility for offshore wind resources to interconnect to the Brooklyn Clean Energy
CON EDISON ANNUAL REPORT 2022
35
Hub during construction and after it commences operation. CECONY requested that the NYSPSC approve either
the original or alternate version of the project at its March 2023 session.
Federal and local municipal laws and agencies also regulate emissions levels and impact the CLCPA’s
decarbonization pathways. In June 2022, the U.S. Supreme Court issued a decision that restricts the authority of
the United States Environmental Protection Agency (EPA) to establish GHG emission reduction measures under the
federal Clean Air Act for technologies that reduce GHG emissions from fossil fuel combustion at the source. Con
Edison, as part of a coalition of public and private utilities, was a party in the case and had argued that the U.S.
Supreme Court should not adopt this restrictive statutory reading of the Clean Air Act. The U.S. Supreme Court's
decision could have potential cost implications for CECONY because it could limit its flexibility to use measures
such as trading emissions allowances from higher emitting sources to lower emitting sources and averaging
emissions across different sources, to cost-effectively meet federal GHG emissions limits for its limited portfolio of
steam and electric generating assets. The decision could also indirectly impact CECONY's and O&R's initiatives to
develop renewable energy sources. The Companies are unable to predict the impact on them as a result of the
decision or any regulations that may be promulgated by the EPA in light of this U.S. Supreme Court decision.
In 2014, New York City announced a goal to reduce GHG emissions 80 percent below 2005 levels by 2050. In May
2019, New York City enacted a package of legislation known as the Climate Mobilization Act, that includes
provisions intended to reduce GHG emissions from large buildings by 40 percent from 2005 levels by 2030. Building
owners may achieve compliance through operational changes, building retrofits, the purchase of GHG offsets, the
purchase of renewable energy credits and the use of clean distributed energy resources. CECONY is unable to
predict the impact on it of the implementation of this law.
In December 2021, New York City enacted Local Law 154. The law prohibits submitting permits for the construction
or major renovation of buildings that use oil, natural gas and some low carbon fuels beginning in 2024 for affected
buildings with less than seven stories and beginning in 2027 for all other affected buildings. The law includes
exceptions for buildings that use electric or steam generation, commercial kitchens, manufacturing, laundromats,
and hospitals. The Department of Buildings may also create additional exceptions.
Energy Efficiency, Electric Vehicles, Energy Storage and Thermal Energy Networks
In January 2020, and updated in August 2022 for CECONY, the NYSPSC issued an order directing energy
efficiency targets and budgets for NY utilities. The order approved $2,000 million statewide for electric and gas
energy efficiency programs and heat pump budgets, and associated targets, for the years 2020 through 2025 to
meet the NYSPSC’s goal of reducing electric use by 3 percent annually and gas use by 1.3 percent annually by
2025. The order and subsequent update authorized budgets for the years 2020 through 2025 for: electric energy
efficiency programs of $688 million and $71 million for CECONY and O&R, respectively; gas energy efficiency
programs of $338 million and $17 million for CECONY and O&R, respectively; and heat pump programs of
$746 million and $15 million for CECONY and O&R, respectively. CECONY’s current electric and gas rate plans
allow it to recover the costs of energy efficiency expenditures, including a full rate of return, in rates from customers.
See Note B to the financial statements in Item 8.
In May 2018, the NYSPSC initiated a proceeding on the role of electric utilities in providing needed infrastructure
and rate options to advance adoption of electric vehicles. In July 2020, the NYSPSC established a light-duty electric
vehicle make-ready program that includes budgets of $290 million and $24 million for CECONY and O&R,
respectively, through 2025 for electric vehicle infrastructure and related program costs. CECONY’s current electric
rate plan also includes funding to offer up to $22 million in incentives for off-peak charging and electric vehicle
infrastructure. The NYSPSC authorized both CECONY and O&R to recover these costs, including a full rate of
return, in rates from customers.
In July 2022, the NYSPSC issued an order directing New York utilities, including CECONY and O&R, to implement
managed electric vehicle charging programs and prescribing program and funding requirements. The order provides
CECONY and O&R with up to a total of $31 million and $5.8 million, respectively, through 2025, for program
implementation and administration costs. The NYSPSC authorized both CECONY and O&R to recover these costs
via surcharge or other mechanisms. The order also provides CECONY and O&R with authorization to offer
incentives to encourage electric vehicle charging to occur overnight and during off-peak times totaling approximately
$71.8 million and $8.2 million, respectively, through 2025, that would be recovered through the respective
company’s revenue reconciliation mechanisms.
In October 2022, the NJBPU approved RECO’s electric vehicle make-ready program that includes a budget of $7.6
million through 2026 for electric vehicle infrastructure and related program costs. The NJBPU authorized RECO to
recover these costs, including a full rate of return, in rates from customers.
36
CON EDISON ANNUAL REPORT 2022
In December 2018, the NYSPSC issued an order establishing an energy storage goal of up to 3,000 MW of energy
storage by 2030 with an interim objective of 1,500 MW by 2025. The order also required CECONY to file an
implementation plan for a competitive procurement process to deploy 300 MW of energy storage while O&R and the
other NY electric utilities must plan to deploy 10 MW each. CECONY and O&R filed their implementation plans in
February 2019. In December 2020, CECONY entered into a contract with a storage developer for energy storage
services to provide power capacity of up to 100 MW. The Utilities expect to recover the cost of energy storage
services, including a full rate of return, in rates from customers. In December 2022, NYSDPS and NYSERDA issued
an updated storage roadmap that proposes to increase the storage goal from 3,000 MW to 6,000 MW by 2030. The
proposal includes the recommendation that New York State’s utilities study the potential of energy storage to
provide non-market transmission and distribution services and identify services that are cost-effective compared to
traditional alternatives.
In September 2022, the NYSPSC initiated a proceeding to implement the Utility Thermal Energy and Jobs Act that
requires NY State’s utilities to propose at least one thermal energy network pilot for NYSPSC review and approval.
CECONY and O&R have submitted preliminary proposals for further development in consultation with NYSDPS.
Distribution System and Distributed Resources
The NYSPSC is directing development by NY electric utilities of a distributed system platform to manage and
coordinate DER in their service areas under NYSPSC regulation and to provide customers, together with third
parties, with data and tools to better manage their energy use. Regarding the latter, CECONY and O&R are working
with other NY electric utilities and NYSERDA to respond to the NYSPSC’s order to implement a data access
framework and integrated energy data resources to share energy-related information. The Utilities are also working
with the other utilities to enhance the NYSPSC’s Utility Energy Registry hosted by NYSERDA that provides public
access to aggregated community energy usage data from the utilities. The NYSPSC has required the Utilities to file
distributed system implementation plans and ordered the Utilities to develop demonstration projects to inform
distributed system platform business models. As of December 31, 2022, CECONY and O&R had one shared active
demonstration project, and individually, CECONY had four and O&R had three active demonstration projects.
The NYSPSC approved CECONY’s advanced metering infrastructure (AMI) installation plan for its electric and gas
delivery businesses, subject to a cap on capital expenditures of $1,285 million. CECONY expects to complete its
AMI installation plan in 2023. The NYSPSC also authorized O&R to expend $98.5 million to install AMI for its NY
customers, which work was complete as of December 31, 2020.
The NYSPSC began to change compensation for DERs and phase out net energy metering (NEM) in 2015. In NY,
NEM compensates kilowatt-hours exported to the electric distribution system at the full-service rate for production,
delivery, taxes and fees. NYSPSC’s policy is to phase in changes to limit annual bill increases to two percent,
reducing the impact of this policy on non-participating residential customers that would have occurred under NEM,
but the NYSPSC have permitted exceptions to this policy.
Climate Change
As indicated by the Intergovernmental Panel on Climate Change, emissions of greenhouse gases (GHG), including
carbon dioxide, are very likely changing the world’s climate.
Climate change could affect customer demand for the Companies’ energy services. It might also cause physical
damage to the Companies’ facilities and disruption of their operations due to more frequent and more extreme
weather. In August 2020, Tropical Storm Isaias caused significant damage to the Utilities’ electric distribution
systems and interrupted service to approximately 530,000 of the Utilities’ customers and caused the second-largest
power outage in the Utilities’ history (Superstorm Sandy interrupted service to 1.4 million of the Utilities’ customers’
in October 2012) and resulted in the Utilities incurring substantial response and restoration costs. After Superstorm
Sandy, CECONY invested $1,000 million in its infrastructure to improve its resilience against storms. In December
2019, CECONY completed a study of climate change vulnerability. The study evaluated present-day infrastructure,
design specifications and procedures under a range of potential climate futures. The study identified sea level rise,
coastal storm surge, inland flooding from intense rainfall, hurricane-strength winds and extreme heat to be
CECONY’s most significant climate-driven risks to its electric, gas and steam systems. The study estimated that
CECONY might need to invest between $1,800 million and $5,200 million by 2050 on targeted programs to adapt to
potential impacts from climate change. During 2020, CECONY further evaluated its future climate change
adaptation strategies and developed a climate change implementation plan that it filed with the NYSPSC in
December 2020. The climate change implementation plan explains how CECONY will incorporate climate change
projections for heat, precipitation, and sea level rise from the 2019 Climate Change Vulnerability Study into its
CON EDISON ANNUAL REPORT 2022
37
operations to mitigate climate change risks to its assets and operations and establishes an ongoing process to
reflect the latest science in the company’s planning. With respect to governance, CECONY adopted a climate
change planning and design guideline, created an executive committee to oversee implementation of the plan, and
established a climate risk and resilience team to execute the day-to-day activities required by the plan.
Effective March 2022, the NY State legislature amended the NY Public Service Law to require all NY electric
utilities, including CECONY and O&R, to conduct a climate change vulnerability study by September 2023 and
develop and file for approval by the NYSPSC a climate vulnerability and resiliency plan by November 2023 that
includes 10- and 20-year outlooks for resiliency. The law authorizes utilities to recover costs through a climate
resiliency cost recovery surcharge for costs incurred outside of rate proceedings and include any unrecovered costs
in base rates when base rates are reset. The NY utilities are required to file an updated climate vulnerability and
resiliency plan with the NYSPSC for approval at least every five years. In June 2022, the NYSPSC initiated a
proceeding to implement the requirements of the legislation.
Based on the most recent data (2020) published by the U.S. Environmental Protection Agency (EPA), Con Edison
estimates that its direct GHG emissions constitute less than 0.1 percent of the nation’s GHG emissions. According
to the CLCPA final scoping plan, the Buildings and Transportation sectors are the two largest sources of GHG
emissions in NY State. Con Edison’s estimated Scope 1 emissions of GHG during the past five years were:
(Metric tons, in millions (a))
CO2 equivalent emissions
2018
3.1
2019
2.9
2020
2.7
2021
2.8
2022
2.9
(a) Estimated emissions for 2022 are based on preliminary data and are subject to third-party verification. Scope 1 emissions are GHG emitted
into the atmosphere by assets owned by Con Edison. Con Edison’s Scope 1 emissions primarily include emissions from CECONY’s
operation of steam, electric, and co-generation plants. Con Edison’s Scope 1 emissions also include fugitive emissions that occur when
pressurized equipment and infrastructure containing a GHG has a controlled or uncontrolled emission and emissions from Con Edison’s
vehicle fleet.
Con Edison’s more than 50 percent decrease in direct GHG emissions (carbon dioxide, methane and sulfur
hexafluoride) from the 2005 baseline (6.0 million metric tons) reflects the emission reductions resulting from
equipment and repair projects, reduced steam demand, the increased use of natural gas in lieu of fuel oil at
CECONY’s steam production facilities as well as projects to reduce sulfur hexafluoride emissions and to replace
leak-prone gas distribution pipes.
CECONY has participated for several years in voluntary initiatives with the EPA to reduce its methane and sulfur
hexafluoride emissions. The Utilities reduce methane emissions from the operation of their gas distribution systems
through pipe maintenance and replacement programs and by introducing new technologies to reduce fugitive
emissions from leaks or when work is performed on operating assets. The Utilities reduce emissions of sulfur
hexafluoride, which is used for arc suppression in substation circuit breakers and switches, by using improved
technologies to locate and repair leaks and by replacing older equipment. The Utilities also actively promote energy
efficiency and the use of renewable generation to help their customers reduce their GHG emissions.
Emissions in NY State are also avoided by renewable electric production facilities replacing fossil-fueled electric
production facilities and the continued operation of upstate nuclear power plants. See – “Clean Energy Future,”
above. NYSERDA has been responsible for implementing the renewable portfolio standard (RPS) and Clean
Energy Standard (CES) established by the NYSPSC. NYSERDA has entered into agreements with developers of
large renewable electric production facilities and the owners of upstate nuclear power plants and pays them
premiums based on the facilities’ electric output. These facilities sell their energy output in the wholesale energy and
capacity markets administered by the NYISO. As a result of the Utilities’ participation in the NYISO wholesale
markets, a portion of the Utilities’ NYISO energy purchases are sourced from renewable electric production facilities.
NYSERDA also has provided rebates to customers who installed eligible renewable electric production
technologies. The electricity produced by such customer-sited renewables generation offsets the energy that the
Utilities would otherwise have procured, thereby reducing the amount of electricity produced by non-renewable
production facilities.
In 2022, NYSERDA and the NYSDEC published the 2022 Statewide GHG Emissions Report, which provided a
summary of statewide GHG emissions from 1990 to 2020, including an analysis of trends, the relative contribution
of each type of GHG and the relative contribution of each type of source. In 2020, total statewide gross GHG
emissions were 15 percent lower than in 1990 and 8 percent lower than in 2019, although the decline from 2019 to
2020 likely reflects the economic impacts of the COVID-19 pandemic and is not considered representative of
current conditions. Annual GHG emission levels are expected to increase from 2020 levels in future reports for 2021
and 2022, reflecting economic recovery following the COVID-19 global pandemic.
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CON EDISON ANNUAL REPORT 2022
In January 2016, the NYSPSC approved a 10-year $5,300 million clean energy fund to be managed by NYSERDA
under the NYSPSC's supervision. The clean energy fund has four portfolios: market development; innovation and
research; NY Green Bank and NY Sun. The Utilities collect all clean energy fund surcharges through the system
benefit charge (including previously authorized RPS, EEPS, Technology and Market Development collections and
incremental clean energy fund collections to be collected from electric customers only). The Utilities billed
customers clean energy fund surcharges of $216 million, $224 million and $212 million in 2022, 2021, and 2020,
respectively. For information about NYSPSC proceedings considering renewable generation see “Clean Energy
Future," above.
CECONY is subject to carbon dioxide emissions regulations established by NY State under the Regional
Greenhouse Gas Initiative (RGGI) due to its ownership of electric generation assets. The initiative, a cooperative
effort by Northeastern and Mid-Atlantic states, established a decreasing cap on carbon dioxide emissions resulting
from the generation of electricity. Under RGGI, affected electric generators are required to obtain emission
allowances to cover their carbon dioxide emissions, available primarily through auctions administered by
participating states or a secondary market. Due to changes in the New York State CO2 Budget Trading Program, for
the fifth RGGI control period (2021 - 2023) two additional CECONY generation units were added to the RGGI
program. However, since the affected units are used only for peaking generation and when needed to restore power
to the electric grid, the incremental allowances that will need to be purchased are not expected to materially impact
the company’s RGGI obligations. CECONY will purchase RGGI allowances for the fifth control period based on
anticipated emissions, which are expected to be similar to past compliance periods.
The cost to the Companies to comply with legislation, regulations or initiatives limiting GHG emissions could be
substantial.
Environmental Sustainability
Con Edison’s sustainability strategy, as it relates to the environment, provides that the company seeks, among other
things, to reduce direct and indirect GHG emissions; enhance the efficiency of its water use; reduce its impact to
natural ecosystems; focus on reducing, reusing and recycling to lower materials consumption and disposal; and
design its work in consideration of climate forecasts.
Con Edison has adopted a Clean Energy Commitment whereby it commits to leading and delivering the transition to
the clean energy future. Con Edison's Clean Energy Commitment is supported by five pillars:
•
•
•
•
•
Build the grid of the future
Empower Con Edison's customers to meet their climate goals
Reimagine the gas system
Lead by reducing Con Edison's carbon footprint
Partner with stakeholders
CECONY
Superfund
The Federal Comprehensive Environmental Response, Compensation and Liability Act of 1980 and similar state
statutes (Superfund) impose joint and several liability, regardless of fault, upon generators of hazardous substances
for investigation costs, remediation costs and environmental damages. The sites as to which CECONY has been
asserted to have liability under Superfund include its and its predecessor companies’ former manufactured gas
sites, its multi-purpose Astoria site, the Gowanus Canal site, the Newtown Creek site and other Superfund sites
discussed below. There may be additional sites as to which assertions will be made that the company has liability.
For a further discussion of claims and possible claims against the company under Superfund, estimated liability
accrued for Superfund claims and recovery from customers of site investigation and remediation costs, see Note G
to the financial statements in Item 8.
Manufactured Gas Sites
CECONY and its predecessors formerly owned and operated manufactured gas plants at 51 sites (MGP Sites) in
New York City and Westchester County. Many of these sites have been subdivided and are now owned by parties
other than CECONY and have been redeveloped for other uses, including schools, residential and commercial
developments and hospitals. The NYSDEC is requiring CECONY to investigate, and if necessary, develop and
implement remediation programs for the sites, including any neighboring areas to which contamination may have
migrated.
CECONY has started remedial investigations at all 51 MGP Sites. After investigations, no MGP impacts have been
detected at all or portions of 15 sites, and the NYSDEC has issued No Further Action (NFA) letters for these sites.
CON EDISON ANNUAL REPORT 2022
39
Coal tar or other MGP-related contaminants have been detected at the remaining 36 sites. Remedial actions have
been completed at all or portions of 14 sites and the NYSDEC has issued NFA letters for these sites. In addition,
remedial actions have been completed by property owners at all or portions of four sites under the NY State
Brownfield Cleanup Program and Certificates of Completion have been issued by the NYSDEC for these sites.
Remedial design, planning or action is ongoing for the remaining sites or portions of sites; however, the information
as to the extent of contamination and scope of the remediation likely to be required for many of these sites is
incomplete. The company estimates that its undiscounted potential liability for the completion of the site
investigation and cleanup of the known contamination on MGP sites (other than the Astoria site, which is discussed
below) could range from $710 million to $2,500 million.
Astoria Site
CECONY is permitted by the NYSDEC to operate a hazardous waste storage facility on property owned by it in the
Astoria section of Queens, NY. Portions of the property were formerly the location of a manufactured gas plant and
also have been used or are being used for, among other things, electric generation operations, electric substation
operations, the storage of fuel oil, the manufacture and storage of liquefied natural gas and the maintenance and
storage of electric equipment. As a condition of its NYSDEC permit, the company is required to investigate the
property and, where environmental contamination is found and action is necessary, to remediate the contamination.
The company’s investigations are ongoing. The company has submitted reports to the NYSDEC and the New York
State Department of Health and in the future will be submitting additional reports identifying the known areas of
contamination. The company estimates that its undiscounted potential liability for the completion of the site
investigation and cleanup of the known contamination on the property could range from $191 million to $639 million.
Gowanus Canal
In August 2009, CECONY received a notice of potential liability and request for information from the EPA about the
operations of the company and its predecessors at sites adjacent to or near the 1.8 mile Gowanus Canal in
Brooklyn, NY. In March 2010, the EPA added the Gowanus Canal to its National Priorities List of Superfund sites.
The canal’s adjacent waterfront is primarily commercial and industrial, currently consisting of concrete plants,
warehouses and parking lots. The canal is near several residential neighborhoods. In September 2013, the EPA
issued its record of decision for the site. The EPA concluded that there was significant contamination at the site,
including polycyclic aromatic hydrocarbons, polychlorinated biphenyls (PCBs), pesticides, metals and volatile
organic compounds. The EPA selected a remedy for the site that includes dredging and disposal of some
contaminated sediments and stabilization and capping of contamination that will not be removed. The EPA
estimated the cost of the selected remedy to be $506 million (and has indicated the actual cost could be significantly
higher). The EPA has identified 39 potentially responsible parties (PRPs) with respect to the site, including CECONY
(which the EPA indicated has facilities that may be a source of PCBs at the site). The EPA ordered the PRPs,
including CECONY, to coordinate and cooperate with each other to perform and/or fund the remedial design for the
selected remedy, which current estimates indicate could cost approximately $113 million. CECONY is funding its
allocated share of the remedial design costs along with the other PRPs. In April 2019, the EPA issued an order that
requires the PRPs, including CECONY, to: (1) design and perform bulkhead structural support work, including
associated access dredging, along certain portions of the upper reaches of the canal, and (2) complete the design
work for bulkhead structural support along certain portions of the middle part of the canal. The PRPs and CECONY
are coordinating the implementation of this order. In January 2020, the EPA issued an order that requires six PRPs,
including CECONY, to initiate the remedial action work in the upper reaches of the canal following the completion of
the bulkhead upgrades. The EPA estimated that this work would cost approximately $125 million, although actual
costs may be significantly higher, and require about 30 months to complete. In November 2020, the PRPs began
implementation of the work required under this order. Cleanup in other areas of the canal is not addressed by this
order. In addition, other Federal agencies and the NYSDEC have previously notified the PRPs of their intent to
perform a natural resource damage assessment for the site. CECONY is unable to estimate its exposure to liability
for the Gowanus Canal site.
Newtown Creek
In June 2017, CECONY received a notice of potential liability from the EPA with respect to the Newtown Creek site
that was listed in 2010 on the EPA’s National Priorities List of Superfund sites. The EPA has identified 20 potentially
responsible parties (PRPs) with respect to the site, including CECONY, and has indicated that it will notify the
company as additional PRPs are identified and notified by the EPA. Newtown Creek and its tributaries (collectively,
Newtown Creek) form a 3.8 mile border between Brooklyn and Queens, NY. Currently, the predominant land use
around Newtown Creek includes industrial, petroleum, recycling, manufacturing and distribution facilities and
warehouses. Other uses include trucking, concrete manufacture, transportation infrastructure and a wastewater
treatment plant. Newtown Creek is near several residential neighborhoods. Six PRPs, not including CECONY,
pursuant to an administrative settlement agreement and order on consent the EPA issued to them in 2011, have
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CON EDISON ANNUAL REPORT 2022
been performing a remedial investigation of the site. The EPA indicated that sampling events have shown the
sediments in Newtown Creek to be contaminated with a wide variety of hazardous substances including PCBs,
metals, pesticides, polycyclic aromatic hydrocarbons and volatile organic compounds. The EPA also indicated that it
has reason to believe that hazardous substances have come to be released from CECONY facilities into Newtown
Creek. The current schedule anticipates completion of a feasibility study for the site during 2023 or 2024 and
issuance of the EPA's record of decision selecting a remedy for the site thereafter. CECONY is unable to estimate
its exposure to liability for the Newtown Creek site.
Other Superfund Sites
CECONY is a PRP at additional Superfund sites involving other PRPs and participates in PRP groups at those
sites. The company generally is not managing the site investigation and remediation at these multiparty sites. Work
at these sites is in various stages, and investigation, remediation and monitoring activities at some of these sites
can be expected to continue over extended periods of time. The company believes that it is unlikely that monetary
sanctions, such as penalties, will be imposed by any governmental authority with respect to these sites.
The following table lists each of the additional Superfund sites for which the company anticipates it may have
liability. The table also shows for each such site its location, the year in which the company was designated or
alleged to be a PRP or to otherwise have responsibilities for the site (shown in the table under “Start”), the name of
the court or agency in which proceedings for the site are pending and CECONY’s estimated percentage of the total
liability for each site. The company currently estimates that its potential liability for investigation, remediation,
monitoring and environmental damages in aggregate for the sites below is less than $2 million. Superfund liability is
joint and several. The company’s estimate of its liability for each site was determined pursuant to consent decrees,
settlement agreements or otherwise and in light of the financial condition of other PRPs. The company’s actual
liability could differ substantially from amounts estimated.
Site
Cortese Landfill
Curcio Scrap Metal
Metal Bank of America
Global Landfill
Borne Chemical
Pure Earth
Location
Narrowsburg, NY
Saddle Brook, NJ
Philadelphia, PA
Old Bridge, NJ
Elizabeth, NJ
Vineland, NJ
Start
1987
1987
1987
1988
1997
2018
Court or
Agency
EPA
EPA
EPA
EPA
NJDEP
EPA
% of Total
Liability
6.0%
100.0%
1.0%
0.4%
0.7%
to be determined
Other Environmental Matters
In July 2021, a CECONY feeder failure led to the discharge of thousands of gallons of dielectric fluid from a street
manhole in New Rochelle, NY. Dielectric fluid reached nearby streets, properties and the New Rochelle Harbor.
CECONY, the U.S. Coast Guard, the NYSDEC and other agencies responded to the incident. CECONY stopped the
feeder leak on the same day that the discharge occurred and has completed the spill recovery and associated
cleanup operations. In coordination with federal and state regulators, CECONY has evaluated certain shoreline
areas for the potential presence of residual dielectric fluid and the extent to which additional cleaning in such areas
may be necessary. In addition, the company has received third-party damage claims. The costs associated with this
matter are not expected to have a material adverse effect on the company’s financial condition, results of operations
or liquidity. In connection with the incident, the company may incur monetary sanctions of more than $0.3 million for
violations of certain provisions regulating the discharge of materials into, and for the protection of, the environment.
In 2016, CECONY and another utility responded to a reported dielectric fluid leak at a NJ marina on the Hudson
River associated with one or two underwater transmission lines, the NJ portion of which is owned and operated by
the other utility and the NY portion of which is owned and operated by CECONY. In 2017, after the marina owner
had cleared substantial debris from its collapsed pier and rip rap material that it had previously placed over and in
the vicinity of the underwater transmission lines in an attempt to shore up its failing pier, a dielectric fluid leak was
found and repaired on one of the underwater transmission lines. In August 2018, the EPA declared the leak
response complete. CECONY, the other utility and the marina owner are involved in litigation in federal court
regarding response and repair costs, related damages, and the future of the lines. In August 2020, CECONY and
the other utility entered into a settlement with the United States federal government, under which the utilities settled
the federal government’s claims for outstanding response costs, without admitting fault and while preserving the
utilities’ rights to pursue recovery from the marina owner. CECONY expects that, consistent with the cost allocation
provisions of its prior arrangements with the other utility for the transmission lines, the response and repair costs
incurred by CECONY, the other utility and government agencies, net of any recovery from the marina owner, will be
CON EDISON ANNUAL REPORT 2022
41
shared by CECONY and the other utility and that CECONY's share is not reasonably likely to have a material
adverse effect on its financial position, results of operations or liquidity
O&R
Superfund
The sites at which O&R has been asserted to have liability under Superfund include its manufactured gas sites and
the Superfund sites discussed below. There may be additional sites as to which assertions will be made that O&R
has liability. For a further discussion of claims and possible claims against O&R under Superfund, see Note G to the
financial statements in Item 8.
Manufactured Gas Sites
O&R and its predecessors formerly owned and operated manufactured gas plants at seven sites (O&R MGP Sites)
in Orange County and Rockland County, NY. Three of these sites are now owned by parties other than O&R, and
have been redeveloped by them for residential, commercial or industrial uses. The NYSDEC is requiring O&R to
develop and implement remediation programs for the O&R MGP Sites including any neighboring areas to which
contamination may have migrated.
O&R has completed remedial investigations and has received the NYSDEC’s decision regarding the remedial work
to be performed at all seven of its MGP sites. Of the seven sites, O&R has completed remediation at four sites.
Remedial construction was conducted on a portion of one of the remaining sites in 2019 and remedial design is
ongoing for the other remaining sites. The company estimates that its undiscounted potential liability for the
completion of the site investigation and cleanup of the known contamination on MGP sites could range from $94
million to $149 million.
Superfund Sites
O&R is a PRP at Superfund sites involving other PRPs and participates in PRP groups at those sites. The company
is not managing the site investigation and remediation at these multiparty Superfund sites. Work at these sites is in
various stages, and investigation, remediation and monitoring activities at some of these sites is expected to
continue over extended periods of time. The company believes that it is unlikely that monetary sanctions, such as
penalties, will be imposed by any governmental authority with respect to these sites.
The following table lists each of the Superfund sites for which the company anticipates it may have liability. The
table also shows for each such site its location, the year in which the company was designated or alleged to be a
PRP or to otherwise have responsibilities for the site (shown in the table under “Start”), the name of the court or
agency in which proceedings for the site are pending and O&R’s estimated percentage of the total liability for each
site. The company currently estimates that its potential liability for investigation, remediation, monitoring and
environmental damages in aggregate for the sites below is less than $1 million. Superfund liability is joint and
several. The company’s estimate of its liability for each site was determined pursuant to consent decrees,
settlement agreements or otherwise and in light of the financial condition of other PRPs. The company’s actual
liability could differ substantially from amounts estimated.
Site
Metal Bank of America
Borne Chemical
Ellis Road
Location
Philadelphia, PA
Elizabeth, NJ
Jacksonville, FL
Start
1993
1997
2011
Court or
Agency
EPA
NJDEP
EPA
% of Total
Liability
4.6%
2.3%
0.2%
Other Federal, State and Local Environmental Provisions
Toxic Substances Control Act
Virtually all electric utilities, including CECONY and O&R, own equipment that may contain PCBs. PCBs are
regulated under the Federal Toxic Substances Control Act of 1976. The Utilities have procedures in place to
manage and dispose of oil and equipment containing PCBs properly when they are removed from service.
Water Quality
Under NYSDEC regulations, the operation of CECONY’s generating facilities requires permits for water discharges
and water withdrawals. Conditions to the renewal of such permits may include limitations on the operations of the
permitted facility or requirements to install certain equipment, the cost of which could be substantial. For information
about the company’s generating facilities, see “CECONY – Electric Operations – Electric Facilities” and “Steam
Operations – Steam Facilities” above in this Item 1.
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CON EDISON ANNUAL REPORT 2022
Certain governmental authorities are investigating contamination in the Hudson River and the New York Harbor.
These waters run through portions of CECONY’s service area. Governmental authorities could require entities that
released hazardous substances that contaminated these waters to bear the cost of investigation and remediation,
which could be substantial.
Air Quality
Under new source review regulations, an owner of a large generating facility, including CECONY’s steam and
steam-electric generating facilities, is required to obtain a permit before making certain modifications to the facility,
other than routine maintenance, repair, or replacement, that cause the increase of emissions of pollutants from the
facility above specified thresholds. To obtain a permit, the facility owner could be required to install additional
pollution controls or otherwise limit emissions from the facility. The company reviews on an on-going basis its
planned modifications to its facilities to determine the potential applicability of new source review and similar
regulations.
The EPA's Transport Rule (also referred to as the Cross-State Air Pollution Rule), which was implemented in
January 2015, established a new cap-and-trade program requiring further reductions in air emissions than the
Clean Air Intrastate Rule (CAIR) that it replaced. Under the Transport Rule, utilities are to be allocated emissions
allowances and may sell the allowances or buy additional allowances. CECONY requested and received NYSPSC
approval to change the provisions under which the company recovers its purchased power costs to provide for costs
incurred to purchase emissions allowances and revenues received from the sale of allowances. In 2021, the EPA
finalized changes to the Transport Rule in response to a court decision. The revised Transport Rule reduced the
number of allowances allocated to CECONY and required the company to purchase allowances to offset the
decreased allocation. CECONY has complied with the Transport Rule in 2022 and expects to comply with the rule in
2023.
The NYSDEC issued regulations in 2019 that limit nitrous oxides (NOx) emissions during the ozone season from
May through September and affect older peaking units that are generally located downstate and needed during
periods of high electric demand or for local reliability purposes. See “CECONY – Electric Operations – Electric
Supply,” above.
Environmental Matters
For information concerning climate change, environmental sustainability, potential liabilities arising from laws and
regulations protecting the environment and other environmental matters, see “Environmental Matters” in Item 1, "Air
Quality," above and Note G to the financial statements in Item 8.
State Anti-Takeover Law
New York State law provides that a “domestic corporation,” such as Con Edison, may not consummate a merger,
consolidation or similar transaction with the beneficial owner of a 20 percent or greater voting stock interest in the
corporation, or with an affiliate of the owner, for five years after the acquisition of the voting stock interest, unless the
transaction or the acquisition of the voting stock interest was approved by the corporation’s board of directors prior
to the acquisition of the voting stock interest. After the expiration of the five-year period, the transaction may be
consummated only pursuant to a stringent “fair price” formula or with the approval of a majority of the disinterested
stockholders.
Human Capital
Con Edison is committed to attracting, developing, and retaining a talented, diverse workforce. It values and
supports a wide range of employee needs and interests. The company’s skilled and experienced workforce enables
the company to maintain best-in-class reliability and progress towards achieving a clean energy future. Human
capital measures focus on employee safety, hiring the right talent, employee development and retention and
diversity and inclusion.
On December 31, 2022, Con Edison and its subsidiaries had 14,319 employees, based entirely in the United States
including 12,717 at CECONY; 1,131 at O&R, 462 at the Clean Energy Businesses and 9 at Con Edison
Transmission. Of the total CECONY and O&R employees, 7,399 and 587 employees, respectively, were
represented by a collective bargaining unit. The collective bargaining agreement covering most of the CECONY
employees expires in June 2024. Agreements covering other CECONY employees and O&R employees expire in
June 2025 and May 2023, respectively.
Con Edison measures the voluntary attrition rate of its employees in assessing the company’s overall human
capital. The company's turnover rate in 2022 was approximately 8.2 percent, 35 percent of which is attributed to
retirements. The average length of service is 14.2 years. Con Edison strives to have a diverse and inclusive
workforce. A comprehensive diversity and inclusion strategy underlies the corporate culture; informing how its
CON EDISON ANNUAL REPORT 2022
43
employees engage with one another, and setting the foundation for a respectful and inclusive environment. On
December 31, 2022, women represented 22.6 percent of the total workforce and people of color represented 51.7
percent of the workforce, with ethnicity breaking down as follows: 48.3 percent White, 22.0 percent Black, 19.0
percent Hispanic, 9.3 percent Asian and 1.4 percent other.
In managing the business, the company emphasizes a strong safety culture. Continuous focus on safety while
performing work is paramount, and leaders and managers are committed to implementing programs and practices
that promote the right knowledge, skills, and attitudes to undertake the responsibilities of safety, including required
training for both field and office employees. To that end, the company has a dedicated facility, the Learning Center,
that offers classes to employees covering technical courses, skills enhancement, safety and leadership
development. During 2022, employees spent over 600,000 hours in instructor-led, leadership and skill-based
training. Further, the company maintains a career development and succession planning program that is committed
to helping employees grow their careers, talents, skills and abilities. In addition to their daily job functions,
employees of the Utilities are assigned to and trained for a position for emergency response that is mobilized in the
event of a weather event or emergency.
Although working remotely for certain positions has been made possible by digital software and smart device
capabilities that enable employees to collaborate with each other and remain productive, the entire CECONY and
O&R workforce is available in the event of an emergency that requires on-site presence. Con Edison and its
subsidiaries managed their operations and resources while avoiding lay-offs and furloughs and continue to recruit,
interview, and hire internal and external applicants to fill open positions.
Available Information
For the sources of information about the Companies, see “Available Information” in the “Introduction” appearing
before this Item 1.
Item 1A: Risk Factors
Information in any item of this report as to which reference is made in this Item 1A is incorporated by reference
herein. The use of such terms as “see” or “refer to” shall be deemed to incorporate at the place such term is used
the information to which such reference is made.
The Companies’ businesses are influenced by many factors that are difficult to predict, and that involve
uncertainties that may materially affect actual operating results, cash flows and financial condition.
The Companies have established an enterprise risk management program to identify, assess, manage and monitor
its major business risks based on established criteria for the severity of an event, the likelihood of its occurrence,
and the programs in place to control the event or reduce its impact. The Companies’ major risks include:
Regulatory/Compliance Risks:
The Companies Are Extensively Regulated And Are Subject To Substantial Penalties. The Companies’
operations require numerous permits, approvals and certificates from various federal, state and local governmental
agencies. State utility regulators may seek to impose substantial penalties on the Utilities for violations of state utility
laws, regulations or orders. The Utilities are also subject to recurring, independent, third-party audits with respect to
these regulations and standards. In addition, the Utilities' rate plans usually include negative revenue adjustments
for failing to meet certain operating and customer satisfaction standards. FERC has the authority to impose
penalties on the Utilities, the Clean Energy Businesses and the projects that Con Edison Transmission invests in,
which could be substantial, for violations of the Federal Power Act, the Natural Gas Act or related rules, including
reliability and cyber security rules. Environmental agencies may seek penalties for failure to comply with laws,
regulations or permits. The Companies may also be subject to penalties from other regulatory agencies. The
Companies may be subject to new laws, regulations or other requirements or the revision or reinterpretation of such
requirements, which could adversely affect them. See “Utility Regulation", "Competition" and “Environmental
Matters – Climate Change" and "Environmental Matters - Other Federal, State and Local Environmental Provisions”
in Item 1, “Critical Accounting Estimates” in Item 7 and “COVID-19 Regulatory Matters” and “Other Regulatory
Matters” in Note B to the financial statements in Item 8.
The Utilities’ Rate Plans May Not Provide A Reasonable Return. The Utilities have rate plans approved by
state utility regulators that limit the rates they can charge their customers. The rates are generally designed for, but
do not guarantee, the recovery of the Utilities’ cost of providing service (including a return on equity). See “Utility
Regulation – State Utility Regulation – Rate Plans” in Item 1 and “Rate Plans” in Note B to the financial statements
in Item 8. Rates usually may not be changed during the specified terms of the rate plans other than to recover
energy costs and limited other exceptions. The Utilities’ actual costs may exceed levels provided for such costs in
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CON EDISON ANNUAL REPORT 2022
the rate plans (see “COVID-19 Regulatory Matters” in Note B to the financial statements in Item 8). State utility
regulators can initiate proceedings to prohibit the Utilities from recovering from their customers the cost of service
(including energy costs and storm restoration costs) that the regulators determine to have been imprudently
incurred (see "Other Regulatory Matters" in Note B to the financial statements in Item 8). The Utilities have from
time to time entered into settlement agreements to resolve various prudence proceedings.
The Companies May Be Adversely Affected By Changes To The Utilities’ Rate Plans. The Utilities’ rate plans
typically require action by regulators at their expiration dates, which may include approval of new plans with different
provisions. The need to recover from customers increasing commodity or other costs, taxes or state-mandated
assessments or surcharges could adversely affect the Utilities’ opportunity to obtain new rate plans that provide a
reasonable rate of return and continue important provisions of current rate plans. The Utilities’ current NY electric
and gas rate plans include revenue decoupling mechanisms and their NY electric, gas and steam rate plans include
provisions for the recovery of energy costs and reconciliation of the actual amount of pension and other
postretirement, environmental and certain other costs to amounts reflected in rates. See “Rate Plans” in Note B to
the financial statements in Item 8.
Operations Risks:
The Failure Of, Or Damage To, The Companies’ Facilities Could Adversely Affect The Companies. The
Utilities provide electricity, gas and steam service using energy facilities, many of which are located either in, or
close to, densely populated public places. See the description of the Utilities’ facilities in Item 1. A failure of, or
damage to, these facilities, or an error in the operation or maintenance of these facilities, could result in bodily injury
or death, property damage, the release of hazardous substances or extended service interruptions. Impacts of
climate change, such as sea level rise, coastal storm surge, inland flooding from intense rainfall, hurricane-strength
winds and extreme heat could damage facilities and the Utilities may experience more severe consequences from
attempting to operate during and after such events. The Utilities’ response to such events may be perceived to be
below customer expectations. The Utilities' successful implementation of their maintenance programs reduces, but
does not fully protect against, damage to their facilities for which they will be held responsible and which may hinder
their restoration efforts. The Utilities could be required to pay substantial amounts that may not be covered by the
Utilities’ insurance policies to repair or replace their facilities, compensate others for injury or death or other damage
and settle any proceedings initiated by state utility regulators or other regulatory agencies. The occurrence of such
events could also adversely affect the cost and availability of insurance. See “Other Regulatory Matters” in Note B
and “Manhattan Explosion and Fire” in Note H to the financial statements in Item 8. Changes to laws, regulations or
judicial doctrines could further expand the Utilities’ liability for service interruptions. See “Utility Regulation – State
Utility Regulation” and "Environmental Matters – Climate Change" in Item 1.
A Cyber Attack Could Adversely Affect The Companies. The Companies and other operators of critical energy
infrastructure and energy market participants face a heightened risk of cyber attack and the Companies’ businesses
require the continued operation of information systems and network infrastructure. See Item 1 for a description of
the businesses of the Utilities, the Clean Energy Businesses and Con Edison Transmission. Cyber attacks may
include hacking, viruses, malware, denial of service attacks, ransomware, exploited vulnerabilities or other security
breaches, including loss of data and communications. Cyber threats in general, and in particular to critical
infrastructure, are increasing in sophistication, magnitude and frequency. Interconnectivity with customers,
independent system operators, energy traders and other energy market participants, suppliers, contractors and
others also exposes the Companies’ information systems and network infrastructure to an increased risk of cyber
incidents, including attacks. Such interconnectivity increases the risk that a cyber incident or attack on the
Companies could affect others and that a cyber incident or attack on others could affect the Companies. In the
event of a cyber incident or attack that the Companies were unable to defend against or mitigate, the Companies
could have their operations and the operations of their customers and others disrupted. The Companies could also
have their financial and other information systems and network infrastructure impaired, property damaged, and
customer and employee information stolen; experience substantial loss of revenues, response costs and other
financial loss; and be subject to increased regulation, litigation, penalties and damage to their reputation. The
Companies have experienced cyber incidents and attacks, although none of the incidents or attacks had a material
impact.
The Failure Of Processes and Systems And The Performance And Failure to Retain and Attract Employees
And Contractors Could Adversely Affect The Companies. The Companies have developed business
processes and use information and communication systems and enterprise platforms for operations, customer
service, legal compliance, personnel, accounting, planning and other matters. The Utilities are replacing their
existing customer billing and information systems. Failures in successfully implementing the new customer billing
and information system could adversely affect the Utilities’ billing and revenue collection processes and cash flow
and could result in higher costs. The Companies have completed a multi-year, phased transition of certain
information technology services, including application maintenance and support and infrastructure and operations
services, to a contractor. The failure of the Companies’ or its contractors' business processes or information and
CON EDISON ANNUAL REPORT 2022
45
communication systems or the failure by the Companies’ employees or contractors to follow procedures, their
unsafe actions, errors or intentional misconduct, cyber incidents or attacks, or work stoppages could adversely
affect the Companies’ operations and liquidity and result in substantial liability, higher costs and increased
regulatory requirements. The violation of laws or regulations by employees or contractors for personal gain may
result from contract and procurement fraud, extortion, bribe acceptance, fraudulent related-party transactions and
serious breaches of corporate policy or standards of business conduct. Competition for employee and contractor
talent may result in operating challenges and increased costs to attract and retain talent. If the Companies are
unable to successfully attract and retain an appropriately qualified workforce, their results of operations, financial
position and cash flows could be negatively affected. See “Human Capital” in Item 1.
Environmental Risks:
The Companies Are Exposed To Risks From The Environmental Consequences Of Their Operations.
The Companies are exposed to risks relating to climate change and related matters. In 2019, CECONY completed
a climate change vulnerability study and during 2020, CECONY further evaluated its future climate change
adaptation strategies and developed a climate change implementation plan. NY State enacted the Climate
Leadership and Community Protection Act and New York City enacted the Climate Mobilization Act. See
“Environmental Matters – Clean Energy Future” in Item 1. CECONY may also be impacted by regulations requiring
reductions in air emissions. See “Environmental Matters – Other Federal, State and Local Environmental Provisions
– Air Quality” in Item 1. In addition, the Utilities are responsible for hazardous substances, such as oil, asbestos,
PCBs and coal tar, that have been used or produced in the course of the Utilities’ operations and are present on
properties or in facilities and equipment currently or previously owned by them. See “Environmental Matters” in Item
1 and Note G to the financial statements in Item 8. The Companies could be adversely affected if a causal
relationship between electric and magnetic fields and adverse health effects were to be established.
Financial and Market Risks:
Con Edison’s Ability To Pay Dividends Or Interest Depends On Dividends From Its Subsidiaries. Con
Edison’s ability to pay dividends on its common shares or interest on its external borrowings depends primarily on
the dividends and other distributions it receives from its subsidiaries. The dividends that the Utilities may pay to Con
Edison are limited by the NYSPSC to not more than 100 percent of their respective income available for dividends
calculated on a two-year rolling average basis, with certain exceptions. See “Dividends” in Note C and Note U to the
financial statements in Item 8.
Changes To Tax Laws Could Adversely Affect the Companies. Changes to tax laws, regulations or
interpretations thereof could have a material adverse impact on the Companies. Depending on the extent of these
changes, the changes could also adversely impact the Companies’ credit ratings and liquidity. See “Capital
Requirements and Resources – Capital Resources” in Item 1, “Liquidity and Capital Resources – Cash Flows from
Operating Activities” in Item 7, "Rate Plans" and "Other Regulatory Matters" in Note B and Note L to the financial
statements in Item 8.
The Companies Require Access To Capital Markets To Satisfy Funding Requirements. The Utilities estimate
that their construction expenditures will exceed $14,600 million over the next three years. The Utilities use
internally-generated funds, equity contributions from Con Edison, if any, and external borrowings to fund the
construction expenditures. Con Edison expects to finance its capital requirements primarily through internally
generated funds, proceeds from the anticipated sale of the Clean Energy Businesses, the sale of its common
shares or external borrowings. Changes in financial market conditions or in the Companies’ credit ratings could
adversely affect their ability to raise new capital and the cost thereof. See “Capital Requirements and Resources” in
Item 1.
A Disruption In The Wholesale Energy Markets, Increased Commodity Costs Or Failure By An Energy
Supplier or Customer Could Adversely Affect The Companies. Almost all the electricity and gas the Utilities
sell to their full-service customers is purchased through the wholesale energy markets or pursuant to contracts with
energy suppliers. See the description of the Utilities’ energy supply in Item 1. A disruption in the wholesale energy
markets or a failure on the part of the Utilities’ energy suppliers or operators of energy delivery systems that connect
to the Utilities’ energy facilities could adversely affect their ability to meet their customers’ energy needs and
adversely affect the Companies. The Utilities' ability to gain access to additional energy supplies, if needed,
depends on effective markets and siting approvals for developer projects, which the Utilities do not control. See
“CECONY - Gas Peak Demand” in Item 1. Increases in electric and gas commodity prices may contribute to a
slower recovery of cash from outstanding customer accounts receivable balances and increases to the allowance
for uncollectible accounts, and may result in increases to write-offs of customer accounts receivable balances. See
“Financial and Commodity Market Risks – Commodity Price Risk” in Item 7. The Clean Energy Businesses sell the
output of their renewable electric projects under long-term power purchase agreements with utilities and
municipalities, and a failure of the production projects could adversely affect Con Edison.
46
CON EDISON ANNUAL REPORT 2022
The Companies May Have Substantial Unfunded Pension And Other Postretirement Benefit Liabilities.
The Utilities may have substantial unfunded pension and other postretirement benefit liabilities. Significant declines
in the market values of the investments held to fund pension and other postretirement benefits could trigger
substantial funding requirements under governmental regulations. See “Critical Accounting Estimates – Accounting
for Pensions and Other Postretirement Benefits” and “Financial and Commodity Market Risks” in Item 7 and Notes
E and F to the financial statements in Item 8.
Other Risks:
The Companies Face Risks Related To Health Epidemics And Other Outbreaks, Including The COVID-19
Pandemic. Pandemic illness could potentially disrupt the Utilities' employees and contractors from providing
essential utility services and the Companies' liquidity, financial condition and results of operations. The COVID-19
pandemic has impacted, and continues to impact, countries, communities, supply chains and markets. As a result of
the COVID-19 pandemic, there has been an economic slowdown in the Companies’ service territories and changes
in governmental and regulatory policy. The decline in business activity in the Companies’ service territories has
resulted in a slower recovery of cash from outstanding customer accounts receivable balances, material increases
in customer accounts receivable balances, increases to the allowance for uncollectible accounts, and may result in
increases to write-offs of customer accounts. Although the Utilities’ NY electric and gas businesses have largely
effective revenue decoupling mechanisms in place, higher unpaid accounts have impacted and could continue to
impact the Companies’ liquidity. See “Coronavirus Disease 2019 (COVID-19) Impacts” in Item 7 and “COVID-19
Regulatory Matters” in Note B.
The Companies’ Strategies May Not Be Effective To Address Changes In The External Business
Environment. The failure to identify, plan and execute strategies to address changes in the external business
environment could have a material adverse impact on the Companies. Con Edison seeks to provide shareholder
value through continued dividend growth, supported by earnings growth in regulated utilities and contracted electric
and gas assets. Changes to the competitive landscape, public policy, laws or regulations (or interpretations thereof),
customer behavior or technology could significantly impact the value of the Utilities’ energy delivery facilities and
Con Edison Transmission's investment in electric and gas transmission projects. Such changes could also affect the
Companies’ opportunities to make additional investments in such assets and the potential return on the
investments. The Utilities' gas delivery customers and CECONY's steam delivery customers have alternatives, such
as electricity and oil. Distributed energy resources, and demand reduction and energy efficiency investments,
provide ways for the energy consumers within the Utilities’ service areas to manage their energy usage. The
Companies expect distributed energy resources and electric alternatives to gas and steam to increase, and for gas
and steam usage to decrease, as the CLCPA and the Climate Mobilization Act continue to be implemented.
CECONY established a gas moratorium in March 2019 on new gas service in most of Westchester County.
CECONY filed a gas planning analysis with the NYSPSC in July 2020 stating the moratorium could be lifted when
increased pipeline capacity is achieved or peak demand is reduced to a level that would enable the company to lift
the moratorium and that it is monitoring gas supply constraint in the New York City portion of its service territory. See
"Clean Energy Businesses," "Con Edison Transmission," "Environmental Matters - Clean Energy Future" and
"Environmental Matters - Climate Change," “Competition” and "CECONY - Gas Peak Demand" in Item 1.
The Companies Face Risks Related To Supply Chain Disruptions And Inflation. The Companies have been
impacted, and expect to continue to be impacted by, global and U.S. supply chain disruptions and shortages of
materials, equipment, labor and other resources that are critical to the Companies’ business operations, primarily
the Utilities’ electric and central operations. Such disruptions and shortages have resulted in increased prices and
lead times for critical orders of materials and equipment needed by the Companies in their operations, such as
certain raw materials, microprocessors, semiconductors, microchips, vehicles and transformers. Long lead times for
replacement parts could restrict the availability and delay the construction, maintenance or repair of items that are
needed to support the Utilities' normal operations and may result in prolonged customer outages, which could in
turn lead to unrecovered costs for such service interruptions. Demand for electric equipment is increasing due to
utilities’ efforts to meet clean energy goals and in order to prepare for more frequent extreme weather events at a
time when manufacturing capacity and supply are decreasing. Prices of materials, equipment, transportation and
other resources have increased as a result of these supply chain disruptions and shortages and may continue to
increase as a result of inflation. Increases in inflation raise the Companies’ costs for operating and capital costs and
employee and retiree benefit costs in excess of the costs reflected in the Utilities’ rate plans and could also increase
the amount of capital that needs to be raised by the Companies and the costs of such capital.
The Companies Also Face Other Risks That Are Beyond Their Control. The Companies’ results of operations
can be affected by circumstances or events that are beyond their control. Weather and energy efficiency efforts
directly influence the demand for electricity, gas and steam service, and can affect the price of energy commodities.
CON EDISON ANNUAL REPORT 2022
47
Terrorist or other physical attacks or acts of war could damage the Companies' facilities. Economic conditions can
affect customers’ demand and ability to pay for service, which could adversely affect the Companies.
Item 1B: Unresolved Staff Comments
Con Edison
Con Edison has no unresolved comments from the SEC staff.
CECONY
CECONY has no unresolved comments from the SEC staff.
Item 2: Properties
Con Edison
Con Edison has no significant properties other than those of the Utilities and the Clean Energy Businesses.
For information about the capitalized cost of the Companies’ utility plant, net of accumulated depreciation, see
“Plant and Depreciation” in Note A to the financial statements in Item 8 (which information is incorporated herein by
reference).
CECONY
For a discussion of CECONY’s electric, gas and steam facilities, see “CECONY – Electric Operations – Electric
Facilities,” “CECONY – Gas Operations – Gas Facilities” and “CECONY – Steam Operations – Steam Facilities” in
Item 1 (which information is incorporated herein by reference).
O&R
For a discussion of O&R’s electric and gas facilities, see “O&R – Electric Operations – Electric Facilities” and “O&R
– Gas Operations – Gas Facilities” in Item 1 (which information is incorporated herein by reference).
Clean Energy Businesses
For a discussion of the Clean Energy Businesses’ facilities, see “Clean Energy Businesses” in Item 1 (which
information is incorporated herein by reference).
Con Edison Transmission
Con Edison Transmission has no properties. Con Edison Transmission has ownership interests in electric and gas
transmission companies. For information about these companies, see "Con Edison Transmission" in Item 1 (which
information is incorporated herein by reference).
Item 3: Legal Proceedings
For information about certain legal proceedings affecting the Companies, see “Other Regulatory Matters” in Note B
and “Superfund Sites” and “Asbestos Proceedings” in Note G and "Manhattan Explosion and Fire" in Note H to the
financial statements in Item 8 and “Environmental Matters – CECONY” and “Environmental Matters – O&R” in
Item 1 of this report, which information is incorporated herein by reference.
Item 4: Mine Safety Disclosures
Not applicable.
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CON EDISON ANNUAL REPORT 2022
Information about our Executive Officers
The following table sets forth certain information about the executive officers of Con Edison as of February 16,
2023. The term of office of each officer, is until the next election of directors (trustees) of their company and until his
or her successor is chosen and qualifies. Officers are subject to removal at any time by the board of directors
(trustees) of their company.
Name
Timothy P. Cawley
Age
58
Offices and Positions During Past Five Years
1/22 to present - Chairman of the Board, President and Chief Executive Officer and Director of Con
Edison, Chairman of the Board, Chief Executive Officer and Trustee of CECONY
Robert Hoglund
Matthew Ketschke
Robert Sanchez
Mark Noyes
Stuart Nachmias
Deneen L. Donnley
61
51
57
57
57
57
12/20 to 12/21 – President and Chief Executive Officer and Director of Con Edison and Chief Executive
Officer and Trustee of CECONY
1/18 to 12/20 – President of CECONY
9/05 to present – Senior Vice President and Chief Financial Officer of Con Edison and CECONY
1/21 to present – President of CECONY
11/17 to 12/20 – Senior Vice President – Customer Energy Solutions
12/17 to present – President and Chief Executive Officer of O&R
12/16 to present – President and Chief Executive Officer of Con Edison Clean Energy Businesses, Inc.
1/20 to present – President and Chief Executive Officer of Con Edison Transmission, Inc.
05/08 to 12/19 – Vice President of Energy Policy and Regulatory Affairs of CECONY
1/20 to present – Senior Vice President and General Counsel of Con Edison and CECONY
10/19 to 12/19 – Senior Vice President of Con Edison and CECONY
9/15 to 10/19 – Executive Vice President, Chief Legal Officer and Corporate Secretary – USAA
Jennifer Hensley
44
9/22 to present – Senior Vice President – Corporate Affairs of CECONY
7/22 to 9/22 – Senior Vice President of CECONY
1/21 to 7/22 - Vice President, Head of Government Relations - LYFT
9/19 to 1/21 - Senior Director, Public Policy - LYFT
11/17 to 9/19 - President, Link - INTERSECTION Co.
Mary E. Kelly
Nancy Shannon
54
55
11/17 to present – Senior Vice President – Corporate Shared Services of CECONY
6/22 to present – Senior Vice President – Utility Shared Services of CECONY
6/18 to 5/22 – Vice President – Human Resources
11/16 to 5/18 – Director of the HR Employee Wellness Center
Joseph Miller
60
1/21 to present – Vice President and Controller of Con Edison and CECONY
1/21 to present – Chief Financial Officer and Controller of O&R
8/06 to 12/20 – Assistant Controller of Corporate Accounting of CECONY
Yukari Saegusa
55
9/16 to present – Treasurer of Con Edison and CECONY
8/16 to present – Vice President of Con Edison and CECONY
8/13 to present – Treasurer of O&R
Gurudatta Nadkarni
57
1/08 to present – Vice President of Strategic Planning of CECONY
CON EDISON ANNUAL REPORT 2022
49
Part II
Item 5: Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of
Equity Securities
Con Edison
Con Edison’s Common Shares ($.10 par value), the only class of common equity of Con Edison, are traded on the
New York Stock Exchange under the trading symbol "ED." As of January 31, 2023, there were 37,423 holders of
record of Con Edison’s Common Shares. Con Edison paid quarterly dividends of 77.5 cents per Common Share in
2021 and quarterly dividends of 79 cents per Common Share in 2022. On January 19, 2023, Con Edison declared a
quarterly dividend of 81 cents per Common Share that is payable on March 15, 2023. Con Edison expects to pay
dividends to its shareholders primarily from dividends and other distributions it receives from its subsidiaries. The
payment of future dividends is subject to approval and declaration by Con Edison’s Board of Directors and will
depend on a variety of factors including business, financial and regulatory considerations. For additional information
about the payment of dividends by the Utilities to Con Edison, and restrictions thereon, see “Dividends” in Note C to
the financial statements in Item 8 (which information is incorporated herein by reference).
During 2022, the market price of Con Edison’s Common Shares increased by 11.7 percent (from $85.32 at year-end
2021 to $95.31 at year-end 2022). By comparison, the S&P 500 Index decreased 19.4 percent and the S&P 500
Utilities Index decreased 1.4 percent. The total return to Con Edison’s common shareholders during 2022, including
both price appreciation and investment of dividends, was 15.7 percent. By comparison, the total returns for the S&P
500 Index and the S&P 500 Utilities Index were (18.1) percent and 1.6 percent, respectively. For the five-year period
2018 through 2022 inclusive, Con Edison’s shareholders’ total return was 35.1 percent, compared with total returns
for the S&P 500 Index and the S&P 500 Utilities Index of 56.9 percent and 58.0 percent, respectively.
Company / Index
Consolidated Edison, Inc.
S&P 500 Index
S&P Utilities
Years Ended December 31,
2017
100.00
100.00
100.00
2018
93.38
95.62
104.11
2019
114.43
125.72
131.54
2020
94.98
148.85
132.18
2021
116.79
191.58
155.53
2022
135.08
156.88
157.97
Based on $100 invested at December 31, 2017, reinvestment of all dividends in equivalent shares of stock and market price changes on all such
shares.
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CON EDISON ANNUAL REPORT 2022
CECONY
The outstanding shares of CECONY’s Common Stock ($2.50 par value) are the only class of common equity of
CECONY. They are held by Con Edison and are not traded.
The dividends declared by CECONY in 2021 and 2022 are shown in its Consolidated Statement of Shareholder’s
Equity included in Item 8 (which information is incorporated herein by reference). For additional information about
the payment of dividends by CECONY, and restrictions thereon, see “Dividends” in Note C to the financial
statements in Item 8 (which information is incorporated herein by reference).
Item 6: [Reserved]
CON EDISON ANNUAL REPORT 2022
51
Item 7: Management’s Discussion and Analysis of Financial Condition and Results of Operations
This combined management’s discussion and analysis of financial condition and results of operations relates to the
consolidated financial statements included in this report of two separate registrants: Con Edison and CECONY, and
should be read in conjunction with the financial statements and the notes thereto. As used in this report, the term
the “Companies” refers to Con Edison and CECONY. CECONY is a subsidiary of Con Edison and, as such,
information in this management’s discussion and analysis about CECONY applies to Con Edison.
Information in any item of this report referred to in this discussion and analysis is incorporated by reference herein.
The use of terms such as “see” or “refer to” shall be deemed to incorporate by reference into this discussion and
analysis the information to which reference is made.
Corporate Overview
Con Edison’s principal business operations are those of the Utilities, the Clean Energy Businesses and Con Edison
Transmission. CECONY is a regulated utility that provides electric service in New York City and New York's
Westchester County, gas service in Manhattan, the Bronx, parts of Queens and parts of Westchester, and steam
service in Manhattan. O&R is a regulated utility serving customers in a 1,300-square-mile-area in southeastern NY
State and northern NJ. Con Edison Clean Energy Businesses, through its subsidiaries, develops, owns and
operates renewable energy infrastructure projects and provides energy-related products and services to wholesale
and retail customers. In October 2022, Con Edison entered into a purchase and sale agreement pursuant to which
Con Edison agreed to sell the Clean Energy Businesses to RWE Renewables Americas, LLC, a subsidiary of RWE
Aktiengesellschaft. The Clean Energy Businesses were classified as held for sale as of December 31, 2022. See
“Assets and Liabilities Held for Sale” in Note A and Note X to the financial statements in Item 8. Con Edison
Transmission, through its subsidiaries, invests in electric transmission projects supporting Con Edison's effort to
transition to clean, renewable energy and manages, through joint ventures, both electric and gas assets while
seeking to develop electric transmission projects that will bring clean, renewable electricity to customers, focusing
on NY, New England, the Mid-Atlantic states and the Midwest.
In addition to the risks and uncertainties described in Item 1A and the Companies’ material contingencies described
in Notes B, G and H to the financial statements in Item 8, the Companies’ management considers the following
events, trends, and uncertainties to be important to understanding the Companies’ current and future financial
condition.
Anticipated Sale of the Clean Energy Businesses
During the first nine months of 2022, Con Edison considered strategic alternatives with respect to the Clean Energy
Businesses. On October 1, 2022, following the conclusion of such review and to allow for continued focus on the
Utilities and their clean energy transition, Con Edison entered into a purchase and sale agreement pursuant to
which Con Edison agreed to sell the Clean Energy Businesses to RWE Renewables Americas, LLC, a subsidiary of
RWE Aktiengesellschaft (RWE) for a total of $6,800 million, subject to closing adjustments. The purchase price will
be adjusted (i) upward for certain cash and cash equivalents, (ii) downward for certain indebtedness and debt-like
items, (iii) downward for certain transaction expenses, (iv) upward or downward to the extent that the net working
capital varies from a set target, (v) upward or downward to the extent that capital expenditures incurred prior to the
closing of the transaction vary from a set budget, and (vi) downward by the value allocated to certain assets and
projects that are not able to be conveyed to RWE upon closing of the transaction. The purchase and sale
agreement includes certain customary representations, warranties and covenants. The transaction is subject to
customary closing conditions, including, among other things; expiration of the waiting period under the Hart-Scott-
Rodino Antitrust Improvements Act of 1976, as amended, which occurred on November 28, 2022; approval from the
FERC under Section 203 of the Federal Power Act, which was obtained on January 20, 2023 and approval by the
Committee on Foreign Investment in the United States, which was obtained on February 6, 2023. The transaction is
expected to close on or about the end of the first quarter of 2023.
Subject to, and following the closing of the sale of the Clean Energy Businesses, Con Edison intends to use the net
proceeds from the sale to repay $1,250 million of parent company debt in 2023, invest in the Utilities and
repurchase up to $1,000 million of its common shares.
See “Assets and Liabilities Held for Sale” in Note A and Note X to the financial statements in Item 8 and "Liquidity
and Financing," below.
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CON EDISON ANNUAL REPORT 2022
Clean Energy Goals
The success of the Companies’ efforts to meet federal, state and city clean energy policy goals and the impact of
such goals on CECONY’s electric, gas and steam businesses and O&R’s electric and gas businesses may impact
the Companies’ future financial condition. The Utilities expect electric demand to increase and gas and steam usage
to decrease in their service territories as federal, state and local laws and policies are enacted and implemented
that continue to promote renewable electric energy. In particular, the long-term future of the Utilities’ gas businesses
depends upon the role that natural gas or other gaseous fuels will play in facilitating New York State’s and New York
City’s climate goals. In addition, the impact and costs of climate change on the Utilities’ systems and the success of
the Utilities’ efforts to increase system reliability and manage service interruptions resulting from severe weather
may impact the Companies’ future financial condition, results of operations and liquidity.
CECONY Steam Rate Plan
In November 2022, as updated in February 2023, CECONY filed a request with the NYSPSC for a steam rate
increase of $141 million, effective November 2023. The filing reflects a return on common equity of 10.0 percent and
a common equity ratio of 50 percent and requests a new mechanism for decoupling revenues from steam
consumption. CECONY’s future earnings will depend on the rates authorized in, and the other provisions of, its
November 2023 steam rate plan and CECONY’s ability to operate its businesses in a manner consistent with such
rate plan. Therefore, the outcome of CECONY’s rate request, which requires approval by the NYSPSC, will impact
the Companies’ future financial condition, results of operations and liquidity. See “Utility Regulation – State Utility
Regulation – Rate Plans” in Item 1 and “Rate Plans” in Note B to the financial statements in Item 8.
Con Edison Transmission
Con Edison Transmission has taken steps to realign its portfolio to focus on electric transmission by completing the
sale of its 50 percent interest in Stagecoach in 2021. During 2020 and 2021, Con Edison Transmission recorded
impairments on its investment in Mountain Valley Pipeline, LLC and during 2021, Con Edison Transmission
recorded impairments on its previously held interest in Stagecoach and its interest in Honeoye Storage Corporation
(Honeoye). Any future impairments of Con Edison Transmission’s investments may impact Con Edison’s future
financial condition and results of operations. Con Edison Transmission is pursuing opportunities and participating in
competitive solicitations to develop electric transmission projects that will deliver renewable energy to high voltage
electric grids in NY, through its NY Transco partnership, and in other states. The success of Con Edison
Transmission’s efforts in these competitive solicitations and to grow its electric transmission portfolio may impact
Con Edison’s future capital requirements. See "Con Edison Transmission" in Item 1 and “Investments” in Note A,
Note K and Note W to the financial statements in Item 8.
Coronavirus Disease 2019 (COVID-19) Impacts
The Coronavirus Disease 2019 (COVID-19) pandemic has impacted, and continues to impact, countries,
communities, supply chains and markets. The COVID-19 pandemic resulted in changes in governmental and
regulatory policy and contributed to an economic slowdown in the Companies’ service territories. The decline in
business activity in the Companies’ service territories resulted in a slower recovery of cash from outstanding
customer accounts receivable balances, material increases in customer accounts receivable balances, increases to
the allowance for uncollectible accounts, and may result in increases to write-offs and recoveries of customer
accounts. The extent to which COVID-19 will continue to impact the Companies, in particular, the Companies’ ability
to recover cash for outstanding customer accounts receivable balances and the amount of write-offs of customer
accounts, may impact Con Edison’s future financial condition, results of operations and liquidity. See “Coronavirus
Disease 2019 (COVID-19) Impacts” in Item 7 and “COVID-19 Regulatory Matters” in Note B.
The Companies continue to monitor the impact of the COVID-19 global pandemic on their employees, customers
and other stakeholders. The Companies support employee health and facility hygiene through regular cleaning and
disinfecting of their facilities and leveraging technology through hybrid (combination of in-person and remote)
meetings. Employees who test positive for COVID-19 are directed to isolate at home and are evaluated for close,
prolonged contact with other employees. Following the Centers for Disease Control and Prevention guidelines, sick
employees return to work when they can safely do so. The Utilities continue to provide critical electric, gas and
steam service to customers during the emergence from the pandemic.
Below is additional information related to the effects of the COVID-19 pandemic and the Companies’ actions. Also,
see “COVID-19 Regulatory Matters” in Note B to the financial statements in Item 8.
Certain financial data of Con Edison’s businesses are presented below:
CON EDISON ANNUAL REPORT 2022
53
(Millions of Dollars,
except percentages)
CECONY
O&R
Total Utilities
Clean Energy Businesses (a)
Con Edison Transmission (b)
Other (c)
Total Con Edison
For the Year Ended December 31, 2022
At December 31, 2022
Operating
Revenues
Net Income for
Common Stock
Assets
$13,268
1,085
14,353
1,319
4
(6)
85%
7%
92%
8%
—%
—%
$15,670
100%
$1,390
88
1,478
382
(1)
(199)
$1,660
84%
5%
89%
23 %
— %
(12) %
100%
$57,445
3,511
60,956
7,224
314
571
83%
5%
88%
10%
1%
1%
$69,065
100%
(a) Net income for common stock from the Clean Energy Businesses for the year ended December 31, 2022 reflects $46 million (after-tax) of
the effects of HLBV accounting for tax equity investments in certain renewable electric projects and $135 million of net after-tax mark-to-
market effects. The Clean Energy Businesses were classified as held for sale as of December 31, 2022. Depreciation and amortization
expenses on their assets of $(46) million (after-tax) were not recorded for the three months ended December 31, 2022. The impact of the
anticipated sale of the Clean Energy Businesses on the remeasurement of deferred state taxes and valuation allowance for deferred tax
assets (net of federal taxes) was $(2) million for the year ended December 31, 2022. See "Assets and Liabilities Held for Sale" in Note A,
Note S and Note X to the financial statements in Item 8.
(b) Net loss for common stock from Con Edison Transmission for the year ended December 31, 2022 includes $(4) million (net of federal
taxes) relating to the remeasurement of deferred state taxes related to prior year dispositions. See "Critical Accounting Estimates -
Investments" in Item 7, "Investments - 2020 and 2021 Partial Impairments of Investment in Mountain Valley Pipeline, LLC (MVP)" in Note A
to the financial statements in Item 8.
(c) Other includes parent company and consolidation adjustments. Net income for common stock for the year ended December 31, 2022
includes $(4) million (after-tax) of income tax impact on the effects of HLBV accounting for tax equity investments in certain renewable
projects and $(10) million of income tax impact on the net after-tax mark-to-market effects. Net income for common stock for the year
ended December 31, 2022 includes $(9) million (net of federal taxes) relating to the remeasurement of deferred state taxes related to prior
year dispositions for Con Edison Transmission. Net income for common stock for the year ended December 31, 2022 also includes $(35)
million of transaction costs related to the anticipated sale of the Clean Energy Businesses (net of tax). The impact of the anticipated sale of
the Clean Energy Businesses on the remeasurement of deferred state taxes and valuation allowance for deferred tax assets (net of federal
taxes) was $(119) million for the year ended December 31, 2022. Depreciation and amortization expenses on the assets of the Clean
Energy Businesses $(4) million (after-tax) were not recorded for the three months ended December 31, 2022. See "Assets and Liabilities
Held for Sale" in Note A, Note S and Note X to the financial statements in Item 8.
Inflation Reduction Act
On August 16, 2022, the Inflation Reduction Act of 2022 (the Act) was signed into law and included a new 15
percent Corporate Alternative Minimum Tax (CAMT). Under the Act, a corporation will be subject to the CAMT if its
average annual Adjusted Financial Statement Income (AFSI) for the three taxable year period ending prior to the
taxable year exceeds $1,000 million, and will apply to tax years beginning after December 31, 2022. Based on
management’s preliminary calculations, Con Edison and CECONY do not expect to be subject to the CAMT in 2023
but are expected to be subject to the CAMT in subsequent years. However, the provisions of the CAMT are not
expected to have a material impact on the Companies’ financial position, results of operations or liquidity.
Impact of CARES Act and 2021 Appropriations Act on Accounting for Income Taxes
In response to the economic impacts of the COVID-19 pandemic, the Coronavirus Aid, Relief, and Economic
Security (CARES) Act became law on March 27, 2020. The CARES Act had several key business tax relief
measures that presented cash benefits and/or refunds for Con Edison and its subsidiaries, including permitting a
five-year carryback of a NOL for tax years 2018, 2019 and 2020, temporary removal of the 80 percent limitation of
NOL carryforwards against taxable income for tax years before 2021, temporary relaxation of the limitations on
interest deductions, employee retention tax credit and deferral of payments of employer payroll taxes.
Con Edison carried back a NOL of $29 million from tax year 2018 to tax year 2013. This allowed Con Edison, mostly
at the Clean Energy Businesses, to receive a $2.5 million net tax refund and to recognize a discrete income tax
benefit of $4 million in 2020, due to the higher federal statutory tax rate in 2013. See "Income Tax" in Note L. Con
Edison and its subsidiaries did not have a federal NOL in tax years 2019 or 2020.
Con Edison and its subsidiaries benefited by the increase in the percentage for calculating the limitation on the
interest expense deduction from 30 percent of Adjusted Taxable Income (ATI) to 50 percent of ATI in 2019 and
2020, which allowed the Companies to deduct 100 percent of their interest expense. For 2021, the limitation on
interest expense for computing ATI reverted back to 30 percent.
The Companies qualify for an employee retention tax credit created under the CARES Act for "eligible employers"
related to governmental authorities imposing restrictions that partially suspended their operations for a portion of
their workforce due to the COVID-19 pandemic and the Companies continued to pay them. For the year ended
54
CON EDISON ANNUAL REPORT 2022
December 31, 2020, Con Edison and CECONY recognized a tax benefit to Taxes, other than income taxes of $10
million and $7 million, respectively.
The CARES Act also allowed employers to defer payments of the employer share of Social Security payroll taxes
that would have otherwise been owed from March 27, 2020 through December 31, 2020. The Companies deferred
the payment of employer payroll taxes for the period April 1, 2020 through December 31, 2020 of approximately $71
million ($63 million of which is for CECONY). The Companies repaid half of this liability during 2021 and the other
half during 2022.
Under the CARES Act, the Companies qualified for an employee retention tax credit for “eligible employers” related
to governmental authorities imposing restrictions that partially suspended their operation for a portion of their
workforce due to the COVID-19 pandemic. In December 2020, the Consolidated Appropriations Act, 2021 (the 2021
Appropriations Act) was signed into law. The 2021 Appropriations Act, among other things, extended the expiring
employee retention tax credit to include qualified wages paid in the first two quarters of 2021, increased the qualified
wages paid to an employee from 50 percent up to $10,000 annually in 2020 to 70 percent up to $10,000 per quarter
in 2021 and increased the maximum employee retention tax credit amount an employer could take per employee
from $5,000 in 2020 to $14,000 in the first two quarters of 2021. In March 2021, the American Rescue Plan Act was
signed into law that expanded the 2021 Appropriations Act to extend the period for eligible employers to receive the
employer retention credit from June 30, 2021 to December 31, 2021. In November 2021, the Infrastructure and
Investment and Jobs Act was signed into law and accelerated the end of the employee retention tax credit
retroactive to October 1, 2021, rather than December 31, 2021. This effectively reduced the maximum credit
available from $28,000 to $21,000 per employee.
For the year ended December 31, 2021, Con Edison and CECONY recognized a tax benefit to Taxes, other than
income taxes of $9 million and $4 million, respectively.
Accounting Considerations
Due to the COVID-19 pandemic and subsequent New York State on PAUSE and related executive orders (that have
since been lifted), a decline in business, bankruptcies, layoffs and furloughs, among other factors, both commercial
and residential customers have had and may continue to have increased difficulty paying their utility bills. In June
2020, the state of NY enacted a law prohibiting NY utilities, including CECONY and O&R, from disconnecting
residential customers, and starting in May 2021 small business customers, during the COVID-19 state of
emergency, which ended in June 2021. In addition, such prohibitions were in effect until December 21, 2021 for
residential and small business customers who experienced a change in financial circumstances due to the
COVID-19 pandemic.
CECONY and O&R have existing allowances for uncollectible accounts established against their customer accounts
receivable balances that are reevaluated each quarter and updated accordingly. Changes to the Utilities’ reserve
balances that result in write-offs of customer accounts receivable balances are not reflected in rates during the term
of the current rate plans.
For the year ended December 31, 2022, CECONY and O&R issued total credits of $359.9 million and $6.1 million,
respectively, towards reducing customers’ accounts receivable balances pursuant to COVID-19 arrears assistance
programs. See "COVID-19 Regulatory Matters" in Note B to the financial statements in Item 8.
In January 2023, the NYSPSC issued an order implementing a Phase 2 COVID-19 arrears assistance program that
provides credits towards reducing the arrears balances of residential and small commercial electric and gas
customers of CECONY and O&R. At the time the order was issued, CECONY’s and O&R’s eligible arrears balances
were estimated to be $388.7 million and $2.9 million, respectively. The order authorizes a surcharge mechanism for
recovery of the eligible credit amounts over a ten-year period commencing after credits are issued for CECONY and
over a one-year period commencing after credits are issued for O&R. See "COVID-19 Regulatory Matters" in Note
B and Note N to the financial statements in Item 8.
CECONY’s and O&R’s "accounts receivable – customers" balance (net of allowance for uncollectible accounts)
increased from $1,841 million and $91 million at December 31, 2021 to $2,099 million and $93 million at December
31, 2022, respectively. CECONY’s customer accounts receivable balances that are over 60 days in arrears
increased from $1,272 million at December 31, 2021 to $1,308 million at December 31, 2022. CECONY’s
allowances for uncollectible customer accounts reserve increased from $304 million at December 31, 2021 to
$314 million at December 31, 2022. O&R’s customer accounts receivable balances that are over 60 days in arrears
decreased from $29 million at December 31, 2021 to $22 million at December 31, 2022. O&R’s allowances for
uncollectible customer accounts reserve decreased from $12.3 million at December 31, 2021 to $8 million at
December 31, 2022.
CON EDISON ANNUAL REPORT 2022
55
During 2022, the potential economic impact of the COVID-19 pandemic and the COVID-19 arrears assistance
programs, were considered in forward-looking projections related to write-off and recovery rates, resulting in
changes to the customer allowance for uncollectible accounts as detailed herein. The Companies test goodwill for
impairment at least annually or whenever there is a triggering event, and test long-lived and intangible assets for
recoverability when events or changes in circumstances indicate that the carrying value of long-lived or intangible
assets may not be recoverable. The Companies identified no triggering events or changes in circumstances related
to the COVID-19 pandemic that would indicate that the carrying value of goodwill, long-lived or intangible assets
may not be recoverable at December 31, 2021 and 2022. See Note K to the financial statements in Item 8.
NY Legislation
In April 2021, NY passed a law that increases the corporate franchise tax rate on business income from 6.5 percent
to 7.25 percent, retroactive to January 1, 2021, for taxpayers with taxable income greater than $5 million. The law
also reinstates the business capital tax at 0.1875 percent, not to exceed a maximum tax liability of $5 million per
taxpayer. NY requires a corporate franchise taxpayer to calculate and pay the highest amount of tax under the three
alternative methods: a tax on business income; a tax on business capital; or a fixed dollar minimum. The provisions
to increase the corporate franchise tax rate and reinstate a capital tax are scheduled to expire after 2023 and are
not expected to have a material impact on the Companies’ financial position, results of operations or liquidity.
In addition, the new law created a program that allows eligible residential renters in NY who require assistance with
rent and utility bills to have up to twelve months of electric and gas utility bill arrears forgiven, provided that such
arrears were accrued on or after March 13, 2020. The program will be administered by the State Office of
Temporary and Disability Assistance (OTDA) in coordination with the NYSDPS and the NYSPSC (the OTDA
Program). Under the OTDA Program, CECONY and O&R would qualify for a refundable tax credit for NY gross-
receipts tax equal to the amount of arrears waived by the Utilities in the year that the arrears are waived and
certified by the NYSPSC. See "COVID-19 Regulatory Matters” in Note B to the financial statements in Item 8.
Liquidity and Financing
The Companies continue to monitor the impacts of the COVID-19 pandemic on the financial markets closely,
including borrowing rates and daily cash collections. The Companies have been able to access the capital markets
as needed since the start of the COVID-19 pandemic in March 2020. Inflationary pressure and higher interest rates
could increase the amount of capital needed by the Utilities and the costs of such capital. See Notes C and D to the
financial statements in Item 8.
The decline in business activity in the Utilities’ service territory due to the COVID-19 pandemic and subsequent New
York State on PAUSE and related executive orders (that have since been lifted) resulted in a slower recovery in
cash of outstanding customer accounts receivable balances in 2020 and 2021. During 2022, increases in electric
and gas commodity prices have contributed and may further contribute to a slower recovery of cash from
outstanding customer accounts receivable balances. The Utilities use derivative instruments to hedge price
fluctuations for the purchase of electricity and gas. Volatility in electric and gas commodity prices that lead to the
posting of cash collateral with counterparties could negatively impact the Utilities’ liquidity. See "COVID-19
Regulatory Matters" in Note B to the financial statements in Item 8 and “Financial and Commodity Market Risks –
Commodity Price Risk,” below.
The Utilities’ rate plans have revenue decoupling mechanisms in their NY electric and gas businesses that largely
reconcile actual energy delivery revenues to the authorized delivery revenues approved by the NYSPSC per month
and reconcile the deferred balances semi-annually under CECONY's electric rate plan (January through June and
July through December, respectively) and annually under CECONY's gas rate plan and O&R NY's electric and gas
rate plans (January through December). Differences are accrued with interest each month for CECONY's and O&R
NY’s electric customers and after the annual deferral period ends for CECONY's and O&R NY’s gas customers for
refund to, or recovery from customers, as applicable. Generally, the refund to or recovery from customers begins
August and February of each year over an ensuing six-month period for CECONY's electric customers and
February of each year over an ensuing twelve-month period for CECONY's gas and O&R NY's electric and gas
customers. Although these revenue decoupling mechanisms are in place, lower billed sales revenues and higher
unpaid accounts have reduced and are expected to continue to reduce liquidity at the Utilities.
In March 2020, the Utilities began suspending service disconnections, certain collection notices, final bill collection
agency activity, new late payment charges and certain other fees for all customers. In November 2021, the
NYSPSC issued an order establishing a surcharge recovery mechanism for CECONY to collect, commencing
December 1, 2021 through December 31, 2022, $43 million and $7 million for electric and gas, respectively, of late
payment charges and fees that were not billed for the year ended December 31, 2020. The company recorded such
amounts as revenue for the year ended December 31, 2021, as permitted under the accounting rules for regulated
utilities, and also accrued such amounts as a current asset at December 31, 2021. Pursuant to the November 2021
56
CON EDISON ANNUAL REPORT 2022
order, the company also established a recovery mechanism for CECONY to collect, commencing January 2023
through December 2023, $19 million and $4 million for electric and gas, respectively, of late payment charges and
fees that were not billed for the year ended December 31, 2021 and the company recorded such amounts as
revenue for the year ended December 31, 2021, as permitted under the accounting rules for regulated utilities, and
also accrued such amounts as a current asset at December 31, 2021. In addition, pursuant to the November 2021
order, CECONY established a reserve of $7 million toward addressing customer arrearages for the year ended
December 31, 2021 that, pursuant to a June 2022 NYSPSC order discussed below, was used to fund a portion of
the COVID-19 arrears assistance program for low-income customers. The order also established a surcharge
recovery or sur-credit mechanism for any late payment charges and fee deferrals, subject to offsetting related
savings resulting from the COVID-19 pandemic, for 2022 starting in January 2024 over a twelve-month period.
CECONY resumed late payment charges for commercial and residential customers who have not experienced a
change in financial circumstances due to the COVID-19 pandemic on September 3, 2021 and October 1, 2021,
respectively. Pursuant to the October 2021 joint proposal for new electric and gas rates for O&R that was approved
by the NYSPSC in April 2022, O&R recorded late payment charges and fees that were not billed for the years
ended December 31, 2020 and December 31, 2021 of $1.7 million and $2.4 million, respectively, as revenue for the
year ended December 31, 2021, as permitted under the accounting rules for regulated utilities, and also accrued
such amounts as a current asset at December 31, 2021. See “Rate Plans,” above. O&R resumed late payment
charges for commercial and residential customers who have not experienced a change in financial circumstances
due to the COVID-19 pandemic on October 1, 2021.
Con Edison and the Utilities have a $2,250 million credit agreement (Credit Agreement) in place under which banks
are committed to provide loans on a revolving credit basis until December 2023 ($2,200 million of commitments
from December 2022), subject to certain conditions. In March 2022, CECONY entered into a 364-Day Revolving
Credit Agreement (CECONY Credit Agreement) under which banks are committed to provide loans up to $750
million on a revolving credit basis until March 30, 2023, subject to certain conditions. In April 2022, FERC issued an
order that increases CECONY's authorization to issue short-term debt from $2,250 million to $3,000 million effective
May 2022. Con Edison and the Utilities have not entered into any loans under the Credit Agreement and CECONY
has not entered into any loans under the CECONY Credit Agreement. See Note D to the financial statements in
Item 8.
New York State and the NYSPSC implemented COVID-19 arrears assistance programs that provide credits and
establishes surcharge recovery mechanisms towards reducing the arrears balances of low-income electric and gas
customers of CECONY and O&R. See "COVID-19 Regulatory Matters" in Note B and Note L to the financial
statements in Item 8 and “Coronavirus Disease 2019 (COVID-19) Impacts – Accounting Considerations,” above.
In October 2022, Con Edison entered into an agreement to sell the Clean Energy Businesses for $6,800 million,
subject to closing adjustments, including working capital adjustments and downward adjustments for indebtedness,
transaction expenses and the value of certain assets and projects that are not able to be conveyed to the buyer
upon closing of the transaction. Subject to, and following the closing of the sale of the Clean Energy Businesses,
Con Edison intends to use the net proceeds from the sale to repay $1,250 million of parent company debt in 2023,
invest in the Utilities and repurchase up $1,000 million of its common shares. The transaction is expected to close
on or about the end of the first quarter of 2023, subject to satisfaction of certain conditions. See "Assets and
Liabilities Held for Sale" in Note A and Note X to the financial statements in Item 8 and "Anticipated Sale of the
Clean Energy Business," above.
CON EDISON ANNUAL REPORT 2022
57
Results of Operations
Net income for common stock and earnings per share for the years ended December 31, 2022, 2021 and 2020
were as follows:
(Millions of Dollars,
except per share amounts)
CECONY
O&R
Clean Energy Businesses (a) (e)
Con Edison Transmission (b)
Other (c)
Con Edison (d)
Net Income for
Common Stock
Earnings per Share
2022
$1,390
88
382
(1)
(199)
$1,660
2021
$1,344
75
266
(316)
(23)
2020
$1,185
71
24
(175)
(4)
$1,346
$1,101
2022
$3.92
0.25
1.08
—
(0.57)
$4.68
2021
$3.86
0.22
0.76
(0.91)
(0.07)
$3.86
2020
$3.54
0.21
0.07
(0.52)
(0.01)
$3.29
(a) Net income for common stock and earnings per share from the Clean Energy Businesses for the year ended December 31, 2022, 2021 and
2020 reflects $46 million or $0.14 a share (after-tax), $107 million or $0.31 a share (after-tax) and $(32) million or $(0.10) a share (after-tax)
of the effects of HLBV accounting for tax equity investments in certain renewable electric projects. Net income for common stock and
earnings per share from the Clean Energy Businesses also includes $135 million or $0.38 a share, $40 million or $0.11 a share and $(43)
million or $(0.13) a share of net after-tax mark-to-market effects in 2022, 2021 and 2020, respectively. The Clean Energy Businesses were
classified as held for sale as of December 31, 2022. Depreciation and amortization expenses on their assets of $(46) million or $(0.13) a
share (after-tax) were not recorded for the three months ended December 31, 2022. The impact of the anticipated sale of the Clean Energy
Businesses on the remeasurement of deferred state taxes and valuation allowance for deferred tax assets (net of federal taxes) was $(2)
million or $(0.01) a share for the three months ended December 31, 2022. See "Assets and Liabilities Held for Sale" in Note A, Note S and
Note X to the financial statements in Item 8. Net income for common stock and earnings per share from the Clean Energy Businesses for
the year ended December 31, 2021 includes $(3) million (after-tax) or $(0.01) a share (after-tax) for the loss from the sale of a renewable
electric project. See Note S to the financial statements in Item 8.
(b) Net loss for common stock and earnings per share from Con Edison Transmission for the year ended December 31, 2022 includes $(4)
million or $(0.01) a share (net of federal taxes) relating to the remeasurement of deferred state taxes related to prior year dispositions. Net
loss for common stock and earnings per share from Con Edison Transmission for the year ended December 31, 2021 includes $(153)
million or $(0.44) a share of net after-tax impairment loss related to its investment in Stagecoach, $(168) million or $(0.48) a share of net
after-tax impairment loss related to its investment in Mountain Valley Pipeline, LLC and $(5) million or $(0.02) a share of loss related to a
goodwill impairment loss related to its investment in Honeoye. Net income for common stock and earnings per share from Con Edison
Transmission for the year ended December 31, 2020 includes $(232) million or $(0.69) a share of net after-tax impairment loss related to its
investment in Mountain Valley Pipeline, LLC. See "Critical Accounting Estimates - Investments" in Item 7 and “Investments - Partial
Impairment of Investment in Mountain Valley Pipeline, LLC (MVP)” in Note A to the financial statements in Item 8.
(c) Other includes parent company and consolidation adjustments. Net income for common stock and earnings per share for the year ended
December 31, 2022 includes $(4) million (after-tax) or $(0.02) a share (after-tax) of income tax impact on the effects of HLBV accounting for
tax equity investments in certain renewable electric projects and $(11) million or $(0.03) a share of income tax impact on the net after-tax
mark-to-market effects. Net income for common stock and earnings per share for the year ended December 31, 2022 includes $(9) million
or $(0.03) a share (net of federal taxes) relating to the remeasurement of deferred state taxes related to prior year dispositions for Con
Edison Transmission. Net income for common stock for the year ended December 31, 2022 also includes $(35) million and $(0.10) a share
of transaction costs related to the anticipated sale of the Clean Energy Businesses (net of tax) related to the anticipated sale of the Clean
Energy Businesses. Impact of the anticipated sale of the Clean Energy Businesses on the remeasurement of deferred state taxes and
valuation allowance for deferred tax assets (net of federal taxes) is $(119 million) or $(0.33) per share. Depreciation and amortization
expenses on the assets of the Clean Energy Businesses $(4) million or $(0.01) a share (after-tax) were not recorded for the three months
ended December 31, 2022. See "Assets and Liabilities Held for Sale" in Note A, Note S and Note X to the financial statements in Item 8.
Net income for common stock and earnings per share for the year ended December 31, 2021 includes $(9) million (after-tax) or $(0.02) a
share (after-tax) of income tax impact on the effects of HLBV accounting for tax equity investments in certain renewable electric projects and
$(3) million or $(0.01) a share of income tax impact on the net after-tax mark-to-market effects. Net income for common stock and earnings
per share for the year ended December 31, 2021 includes $6 million or $0.02 a share of income tax impact for the impairment loss related to
Con Edison Transmission’s investment in Stagecoach. Net income for common stock and earnings per share for the year ended December
31, 2021 includes $6 million or $0.01 a share of income tax impact for the impairment loss related to Con Edison Transmission’s investment
in Mountain Valley Pipeline, LLC. See “Investments - Partial Impairment of Investment in Stagecoach Gas Services LLC (Stagecoach)” and
"Investments - 2020 and 2021 Partial Impairments of Investment in Mountain Valley Pipeline, LLC (MVP)" in Note A to the financial
statements in Item 8.
Net income for common stock and earnings per share for the year ended December 31, 2020 includes $3 million or $0.01 a share (after-
tax), respectively, of income tax impact on the effects of HLBV accounting for tax equity investments in certain renewable electric projects.
Net income for common stock and earnings per share from the Clean Energy Businesses for the year ended December 31, 2020 includes
$4 million or $0.01 a share of income tax impact on the net after-tax mark-to-market effects. Net income for common stock and earnings per
share for the year ended December 31, 2020 includes $9 million or $0.03 a share of income tax impact for the impairment loss related to
Con Edison Transmission’s investment in Mountain Valley Pipeline, LLC. See “Investments - 2020 and 2021 Partial Impairments of
Investment in Mountain Valley Pipeline, LLC (MVP)” in Note A to the financial statements in Item 8.
(d) Earnings per share on a diluted basis were $4.66 a share, $3.85 a share and $3.28 a share in 2022, 2021 and 2020, respectively. See
"Earnings Per Common Share" in Note A to the financial statements in Item 8.
(e) The Clean Energy Businesses were classified as held for sale as of December 31, 2022. See “Assets and Liabilities Held for Sale” in Note A
and Note X to the financial statements in Item 8.
The following tables present the estimated effect of major factors on earnings per share and net income for common
stock for the years ended December 31, 2022 as compared with 2021, and 2021 as compared with 2020.
58
CON EDISON ANNUAL REPORT 2022
Variation for the Year Ended December 31, 2022 vs. 2021
Net Income for
Common Stock
(Millions of
Dollars)
Earnings per
Share
CECONY (a)
Higher electric rate base
Higher gas rate base
Lower costs related to winter storms and heat events
Higher income from allowance for funds used during construction
Lower health care and other employee benefits costs
Weather impact on steam revenues
Resumption of the billing of late payment charges and other fees to allowed rate plan levels
Lower incentives earned under the electric and gas earnings adjustment mechanisms (EAMs)
and positive incentives
Higher stock-based compensation costs
Regulatory commission expense
Higher payroll taxes
Dilutive effect of stock issuances
Other
Total CECONY
O&R (a)
Electric base rate increase
Gas base rate increase
Higher stock-based compensation costs
Other
Total O&R
Clean Energy Businesses (b)
Higher wholesale revenue
Net mark-to-market effects
Impact of the anticipated sale of the Clean Energy Businesses
Loss from sale of a renewable electric project in 2021
Higher gas purchased for resale
HLBV effects
Higher operation and maintenance expense from engineering, procurement and construction
of renewable electric projects
Higher cost from purchased power
Lower tax credits
Higher interest expense
Dilutive effect of stock issuances
Other
Total Clean Energy Businesses
Con Edison Transmission
Impairment loss related to investment in Mountain Valley Pipeline, LLC
Impairment loss related to investment in Stagecoach in 2021
Impairment loss related to investment in Honeoye in 2021
Lower interest expense
Lower investment income
Remeasurement of deferred state taxes related to prior year dispositions
Other
Total Con Edison Transmission
Other, including parent company expenses
HLBV effects
Impact of the anticipated sale of the Clean Energy Businesses
Remeasurement of deferred state tax related to prior year dispositions
Impact of net mark-to-market effects
Impairment related to investment in Stagecoach in 2021
$48
39
26
16
13
6
(34)
(28)
(18)
(11)
(4)
—
(7)
46
16
8
(2)
(9)
13
207
95
44
3
(135)
(61)
(21)
(5)
(4)
(3)
—
(4)
116
168
153
5
3
(14)
(4)
4
315
5
(158)
(9)
(7)
(6)
$0.14
0.11
0.08
0.04
0.03
0.02
(0.10)
(0.08)
(0.05)
(0.03)
(0.01)
(0.07)
(0.02)
0.06
0.04
0.02
(0.01)
(0.02)
0.03
0.59
0.27
0.12
0.01
(0.39)
(0.17)
(0.06)
(0.01)
(0.01)
(0.01)
(0.02)
—
0.32
0.48
0.44
0.02
0.01
(0.04)
(0.01)
0.01
0.91
—
(0.44)
(0.03)
(0.02)
(0.02)
CON EDISON ANNUAL REPORT 2022
59
Impairment related to investment in Mountain Valley Pipeline, LLC
Dilutive effect of stock issuances
Other
Total Other, including parent company expenses
Total Reported (GAAP basis)
(6)
—
5
(176)
314
(0.01)
0.01
0.01
(0.50)
0.82
a. Under the revenue decoupling mechanisms in the Utilities’ NY electric and gas rate plans and the weather-normalization
clause applicable to their gas businesses, revenues are generally not affected by changes in delivery volumes from levels
assumed when rates were approved. In general, the Utilities recover on a current basis the fuel, gas purchased for resale
and purchased power costs they incur in supplying energy to their full-service customers. Accordingly, such costs do not
generally affect Con Edison’s results of operations.
b.
The Clean Energy Businesses were classified as held for sale as of December 31, 2022.
60
CON EDISON ANNUAL REPORT 2022
Variation for the Year Ended December 31, 2021 vs. 2020
CECONY (a)
Recognition of late payment charges for the year ended 2020 that are being recovered
through a surcharge mechanism established by the New York Public Service Commission in
its November 2021 order
Recognition of late payment charges for the year ended 2021 that are being recovered through a
surcharge mechanism established by the New York Public Service Commission in its November
2021 order, and resuming the billing of late payment charges and no access fees
Higher electric rate base
Higher gas rate base
Higher incentives earned under the electric and gas earnings adjustment mechanisms (EAMs)
and positive incentives
Weather impact on steam revenues
Higher costs related to heat, storm and emergency response
Higher healthcare costs
Higher stock-based compensation costs
Dilutive effect of stock issuances
Other
Total CECONY
O&R (a)
Electric base rate increase
Higher storm-related costs
Total O&R
Clean Energy Businesses
Higher revenues
HLBV effects
Net mark-to-market effects
Higher operations and maintenance expenses
Loss from sale of a renewable electric project
Dilutive effect of stock issuances
Other
Total Clean Energy Businesses
Con Edison Transmission
Impairment loss related to investment in Mountain Valley Pipeline, LLC
Impairment losses related to investment in Stagecoach
Foregoing Allowance for Funds Used During Construction income starting in January 2021
until significant construction resumes on the Mountain Valley Pipeline
Impairment loss related to investment in Honeoye
Other
Total Con Edison Transmission
Other, including parent company expenses
Impairment tax benefits related to investment in Mountain Valley Pipeline, LLC
Tax impact of HLBV effects
Tax impact of net mark-to-market effects
Lower consolidated state income tax benefit
Impairment tax benefits related to investment in Stagecoach
Other
Total Other, including parent company expenses
Total Reported (GAAP basis)
Net Income
for Common
Stock
(Millions of
Dollars)
Earnings per
Share
$32
$0.09
41
64
38
30
16
(37)
(16)
(11)
—
2
159
9
(5)
4
209
139
83
(180)
(3)
—
(6)
242
64
(153)
(44)
(5)
(3)
(141)
(3)
(9)
(3)
(9)
6
(1)
(19)
$245
0.13
0.19
0.11
0.09
0.05
(0.11)
(0.05)
(0.03)
(0.15)
—
0.32
0.03
(0.02)
0.01
0.62
0.41
0.24
(0.54)
(0.01)
(0.03)
—
0.69
0.21
(0.44)
(0.13)
(0.02)
(0.01)
(0.39)
(0.02)
(0.02)
(0.01)
(0.03)
0.02
—
(0.06)
$0.57
a. Under the revenue decoupling mechanisms in the Utilities’ NY electric and gas rate plans and the weather-normalization clause applicable
to their gas businesses, revenues are generally not affected by changes in delivery volumes from levels assumed when rates were
approved. In general, the Utilities recover on a current basis the fuel, gas purchased for resale and purchased power costs they incur in
supplying energy to their full-service customers. Accordingly, such costs do not generally affect Con Edison’s results of operations.
CON EDISON ANNUAL REPORT 2022
61
The Companies’ other operations and maintenance expenses for the years ended December 31, 2022, 2021 and
2020 were as follows:
(Millions of Dollars)
CECONY
Operations
Pensions and other postretirement benefits
Health care and other benefits
Regulatory fees and assessments (a)
Other
Total CECONY
O&R
Clean Energy Businesses (c)
Con Edison Transmission
Other (b)
2022
2021
2020
$1,717
$1,691
415
155
354
401
(42)
173
332
298
3,042
2,452
351
504
13
(5)
313
475
19
(5)
$1,606
(103)
151
330
285
2,269
310
228
11
(4)
Total other operations and maintenance expenses
$3,905
$3,254
$2,814
Includes Demand Side Management, System Benefit Charges and Public Service Law 18A assessments which are collected in revenues.
Includes parent company and consolidation adjustments.
(a)
(b)
(c) The Clean Energy Businesses were classified as held for sale as of December 31, 2022. See “Assets and Liabilities Held for Sale” in Note
A and Note X to the financial statements in Item 8.
Con Edison’s principal business segments are CECONY’s regulated utility activities, O&R’s regulated utility
activities, the Clean Energy Businesses and Con Edison Transmission. The Clean Energy Businesses were
classified as held for sale as of December 31, 2022. See “Assets and Liabilities Held for Sale” in Note A and Note X
to the financial statements in Item 8. CECONY’s principal business segments are its regulated electric, gas and
steam utility activities. A discussion of the results of operations by principal business segment for the years ended
December 31, 2022, 2021 and 2020 follows. For additional business segment financial information, see Note P to
the financial statements in Item 8.
62
CON EDISON ANNUAL REPORT 2022
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i
CON EDISON ANNUAL REPORT 2022
63
Year Ended December 31, 2022 Compared with Year Ended December 31, 2021
CECONY
(Millions of Dollars)
Operating revenues
Purchased power
Fuel
Gas purchased for resale
Other operations and maintenance
Depreciation and amortization
Taxes, other than income taxes
Operating income
For the Year Ended
December 31, 2022
For the Year Ended
December 31, 2021
Electric
Gas
Steam
2022
Total Electric
Gas
Steam
2021
Total
2022-2021
Variation
$9,751
$2,924
$593
$13,268
$8,806
$2,378
$532
$11,716
$1,552
2,137
246
—
2,373
1,315
2,184
—
—
869
472
367
556
64
110
—
197
96
147
2,201
1,588
356
869
3,042
1,778
2,887
156
—
1,919
1,286
2,055
—
—
541
368
326
497
$1,496
$660
$(21)
$2,135
$1,802
$646
45
73
—
165
93
144
$12
1,633
229
541
2,452
1,705
2,696
568
127
328
590
73
191
$2,460
$(325)
Electric
CECONY’s results of electric operations for the year ended December 31, 2022 compared with the year ended
December 31, 2021 were as follows:
(Millions of Dollars)
Operating revenues
Purchased power
Fuel
Other operations and maintenance
Depreciation and amortization
Taxes, other than income taxes
Electric operating income
For the Years Ended December 31,
2022
$9,751
2,137
246
2,373
1,315
2,184
2021
$8,806
1,588
156
1,919
1,286
2,055
Variation
$945
549
90
454
29
129
$1,496
$1,802
$(306)
CECONY’s electric sales and deliveries in 2022 compared with 2021 were:
Description
Residential/Religious (b)
Commercial/Industrial
Retail choice customers
NYPA, Municipal Agency and
other sales
Other operating revenues (c)
Total
Millions of kWh Delivered
Revenues in Millions (a)
For the Years Ended
For the Years Ended
December
31, 2022
December
31, 2021 Variation
Percent
Variation
December
31, 2022
December
31, 2021 Variation
11,875
10,522
21,116
9,507
—
53,020
11,344
9,250
21,549
9,185
—
531
1,272
(433)
322
—
4.7%
13.8
(2.0)
3.5
—
$3,416
2,740
2,526
751
318
$3,100
2,174
2,613
708
211
51,328
1,692
3.3 % (d)
$9,751
$8,806
$316
566
(87)
43
107
$945
Percent
Variation
10.2%
26.0
(3.3)
6.1
50.7
10.7%
(a) Revenues from electric sales are subject to a revenue decoupling mechanism, as a result of which, delivery revenues are generally not
(b)
affected by changes in delivery volumes from levels assumed when rates were approved.
“Residential/Religious” generally includes single-family dwellings, individual apartments in multi-family dwellings, religious organizations
and certain other not-for-profit organizations.
(c) Other electric operating revenues generally reflect changes in the revenue decoupling mechanism current asset or regulatory liability and
changes in regulatory assets and liabilities in accordance with other provisions of the company’s rate plan.
(d) After adjusting for variations, primarily weather and billing days, electric delivery volumes in the company’s service area increased 3.3
percent in 2022 compared with 2021. See “Coronavirus Disease 2019 (COVID-19) Impacts,” above.
Operating revenues increased $945 million in 2022 compared with 2021 primarily due to higher purchased power
expenses ($549 million), higher revenues from the electric rate plan ($279 million) and higher fuel expenses ($90
million).
Purchased power expenses increased $549 million in 2022 compared with 2021 due to higher unit costs ($400
million) and purchased volume ($149 million).
64
CON EDISON ANNUAL REPORT 2022
Fuel expenses increased $90 million in 2022 compared with 2021 due to higher unit costs ($106 million), offset in
part by lower purchased volumes from the company’s electric generating facilities ($16 million).
Other operations and maintenance expenses increased $454 million in 2022 compared with 2021 primarily due to
higher costs for pension and other postretirement benefits ($355 million), higher stock-based compensation ($19
million), higher total surcharges for assessments and fees that are collected in revenues from customers ($19
million), higher municipal infrastructure support costs ($13 million), higher uncollectible expense ($8 million) and
higher costs for injuries and damages ($6 million).
Depreciation and amortization increased $29 million in 2022 compared with 2021 primarily due to higher electric
utility plant balances.
Taxes, other than income taxes increased $129 million in 2022 compared with 2021 primarily due to higher property
taxes ($75 million), higher deferral of over-collected property taxes ($27 million) and higher state and local taxes
($24 million).
Gas
CECONY’s results of gas operations for the year ended December 31, 2022 compared with the year ended
December 31, 2021 were as follows:
(Millions of Dollars)
Operating revenues
Gas purchased for resale
Other operations and maintenance
Depreciation and amortization
Taxes, other than income taxes
Gas operating income
For the Years Ended December 31,
2022
$2,924
869
472
367
556
$660
2021
$2,378
541
368
326
497
$646
Variation
$546
328
104
41
59
$14
CECONY’s gas sales and deliveries, excluding off-system sales, in 2022 compared with 2021 were:
Thousands of Dt Delivered
Revenues in Millions (a)
For the Years Ended
For the Years Ended
December
31, 2022
December
31, 2021 Variation
Percent
Variation
December
31, 2022
December
31, 2021 Variation
Percent
Variation
50,690
890
1.8 %
$1,272
$1,050
$222
21.1 %
51,580
33,666
75,172
30,947
2,719
8.8
76,765
(1,593)
(2.1)
578
798
423
704
155
94
160,418
158,402
2,016
1.3
(b)
$2,648
$2,177
$471
6,098
45,085
53,262
19,186
—
5,927
43,094
47,620
171
2.9 %
1,991
5,642
4.6
11.8
20,251
(1,065)
(5.3)
—
—
—
51
2
30
34
159
29
2
25
34
111
22
—
5
—
48
36.6
13.4
21.6
75.9 %
—
20.0
—
43.2
Description
Residential
General
Firm retail choice customers
Total firm sales and firm
retail choice
Interruptible sales (c)
NYPA
Generation plants
Other
Other operating revenues (d)
Total
284,049
275,294
8,755
3.2 %
$2,924
$2,378
$546
23.0 %
(a) Revenues from gas sales are subject to a weather normalization clause and a revenue decoupling mechanism, as a result of which,
delivery revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved.
(b) After adjusting for variations, primarily billing days, firm gas sales and firm retail choice volumes in the company’s service area increased
(c)
0.4 percent in 2022 compared with 2021. See “Coronavirus Disease 2019 (COVID-19) Impacts,” above.
Includes 2,015 thousands and 1,921 thousands of Dt for 2022 and 2021, respectively, which are also reflected in firm retail choice
customers and other.
(d) Other gas operating revenues generally reflect changes in the revenue decoupling mechanism and weather normalization clause current
asset or regulatory liability and changes in regulatory assets and liabilities in accordance with other provisions of the company’s rate plans.
See Note B to the financial statements in Item 8.
Operating revenues increased $546 million in 2022 compared with 2021 primarily due to higher gas purchased for
resale expense ($328 million) and higher gas revenues under the company's gas rate plan ($207 million).
CON EDISON ANNUAL REPORT 2022
65
Gas purchased for resale increased $328 million in 2022 compared with 2021 due to higher unit costs ($273 million)
and higher purchased volumes ($55 million).
Other operations and maintenance expenses increased $104 million in 2022 compared with 2021 primarily due to
higher costs for pension and other postretirement benefits ($73 million), higher municipal infrastructure support ($6
million), higher stock-based compensation ($4 million), higher uncollectible expense ($2 million), higher total
surcharges for assessments and fees that are collected in revenues from customers ($2 million) and higher costs
for injuries and damages ($1 million).
Depreciation and amortization increased $41 million in 2022 compared with 2021 primarily due to higher gas utility
plant balances.
Taxes, other than income taxes increased $59 million in 2022 compared with 2021 primarily due to higher deferral
of over-collected property taxes ($23 million), higher property taxes ($23 million) and higher state and local taxes
($13 million).
Steam
CECONY’s results of steam operations for the year ended December 31, 2022 compared with the year ended
December 31, 2021 were as follows:
(Millions of Dollars)
Operating revenues
Purchased power
Fuel
Other operations and maintenance
Depreciation and amortization
Taxes, other than income taxes
Steam operating income
CECONY’s steam sales and deliveries in 2022 compared with 2021 were:
For the Years Ended December 31,
2022
$593
64
110
197
96
147
$(21)
2021
$532
45
73
165
93
144
$12
Variation
$61
19
37
32
3
3
$(33)
Description
General
Apartment house
Annual power
Other operating revenues (a)
—
—
Total
17,427
16,884
Millions of Pounds Delivered
Revenues in Millions
For the Years Ended
For the Years Ended
December
31, 2022
December
31, 2021 Variation
Percent
Variation
December
31, 2022
December
31, 2021 Variation
Percent
Variation
513
5,122
504
5,013
11,792
11,367
9
109
425
—
543
1.8 %
2.2
3.7
—
$27
155
391
20
$25
137
340
30
3.2 % (b)
$593
$532
$2
18
51
(10)
$61
8.0 %
13.1
15.0
(33.3)
11.5 %
(a) Other steam operating revenues generally reflect changes in regulatory assets and liabilities in accordance with the company’s rate plan.
See Note B to the financial statements in Item 8.
(b) After adjusting for variations, primarily weather and billing days, steam sales and deliveries in the company’s service area increased 1.1
percent in 2022 compared with 2021. See “Coronavirus Disease 2019 (COVID-19) Impacts,” above.
Operating revenues increased $61 million in 2022 compared with 2021 primarily due to higher fuel expenses ($37
million), higher purchased power expenses ($19 million) and the impact of colder winter weather ($8 million).
Purchased power expenses increased $19 million in 2022 compared with 2021 due to higher unit costs ($23 million)
offset in part by lower purchased volumes ($4 million).
Fuel expenses increased $37 million in 2022 compared with 2021 due to higher unit costs ($28 million) and higher
purchased volumes from the company’s steam generating facilities ($9 million).
Other operations and maintenance expenses increased $32 million in 2022 compared with 2021 primarily due to
higher costs for pension and other postretirement benefits ($30 million) and higher stock-based compensation
($2 million).
Depreciation and amortization increased $3 million in 2022 compared with 2021 primarily due to higher steam utility
plant balances.
66
CON EDISON ANNUAL REPORT 2022
Taxes, other than income taxes increased $3 million in 2022 compared with 2021 primarily due to higher property
taxes ($5 million) and higher state and local taxes ($2 million), offset in part by higher deferral of under-collected
property taxes ($5 million).
Taxes, Other Than Income Taxes
At $2,887 million, taxes other than income taxes remain one of CECONY’s largest operating expenses. The
principal components of, and variations in, taxes other than income taxes were:
(Millions of Dollars)
Property taxes
State and local taxes related to revenue receipts
Payroll taxes
Other taxes
Total
For the Years Ended December 31,
2022
$2,318
411
70
88
2021
$2,215
373
65
43
$2,887 (a)
$2,696 (a)
Variation
$103
38
5
45
$191
(a)
Including sales tax on customers’ bills, total taxes other than income taxes in 2022 and 2021 were $3,548 million and $3,296 million,
respectively.
Other Income (Deductions)
Other deductions increased $440 million in 2022 compared with 2021 primarily due to higher costs associated with
components of pension and other postretirement benefits other than service cost ($458 million), offset in part by
lower expenses resulting from investment performance in a deferred income plan ($19 million).
Net Interest Expense
Net interest expense increased $60 million in 2022 compared with 2021 primarily due to higher interest on long-term
debt ($49 million) and higher interest on short-term debt ($29 million), offset in part by an increase in the allowance
for borrowed funds used during construction ($22 million).
Income Tax Expense
Income taxes increased $9 million in 2022 compared with 2021 primarily due to higher income before income tax
expense ($11 million) and higher state income taxes ($3 million), offset in part by higher research and development
credits from prior years ($5 million).
O&R
(Millions of Dollars)
Operating revenues
Purchased power
Gas purchased for resale
Other operations and maintenance
Depreciation and amortization
Taxes, other than income taxes
Operating income
For the Year Ended
December 31, 2022
For the Year Ended
December 31, 2021
Electric
$773
276
—
275
71
57
$94
Gas
$312
—
135
76
27
32
2022
Total
Electric
$1,085
$681
276
135
351
98
89
206
—
249
69
57
Gas
$260
—
88
64
26
32
2021
Total
2022-2021
Variation
$941
$144
206
88
313
95
89
70
47
38
3
—
$42
$136
$100
$50
$150
$(14)
CON EDISON ANNUAL REPORT 2022
67
Electric
O&R’s results of electric operations for the year ended December 31, 2022 compared with the year ended
December 31, 2021 were as follows:
For the Years Ended December 31,
(Millions of Dollars)
Operating revenues
Purchased power
Other operations and maintenance
Depreciation and amortization
Taxes, other than income taxes
Electric operating income
2022
$773
276
275
71
57
$94
2021
$681
206
249
69
57
$100
O&R’s electric sales and deliveries in 2022 compared with 2021 were:
Millions of kWh Delivered
Revenues in Millions (a)
For the Years Ended
For the Years Ended
Description
Residential/Religious (b)
Commercial/Industrial
Retail choice customers
Public authorities
Other operating revenues (c)
Total
December
31, 2022
December
31, 2021 Variation
1,916
944
2,580
113
—
1,742
850
2,839
110
—
5,553
5,541
174
94
(259)
3
—
12
Percent
Variation
10.0%
11.1
(9.1)
2.7
—
December
31, 2022
December
31, 2021 Variation
$413
$331
147
198
16
(1)
111
223
11
5
$82
36
(25)
5
(6)
$92
0.2 % (d)
$773
$681
Variation
$92
70
26
2
—
$(6)
Percent
Variation
24.8%
32.4
(11.2)
45.5
Large
13.5 %
(a) O&R’s NY electric delivery revenues are subject to a revenue decoupling mechanism, as a result of which delivery revenues are generally
not affected by changes in delivery volumes from levels assumed when rates were approved. Effective July 2021, the majority of O&R’s
electric distribution revenues in NJ are subject to a conservation incentive program, as a result of which distribution revenues are generally
not affected by changes in delivery volumes from levels assumed when rates were approved. O&R’s electric transmission revenues in NJ
are not subject to a conservation incentive program, and as a result, changes in such volumes do impact revenues.
“Residential/Religious” generally includes single-family dwellings, individual apartments in multi-family dwellings, religious organizations
and certain other not-for-profit organizations.
(b)
(c) Other electric operating revenues generally reflect changes in the revenue decoupling mechanism current asset or regulatory liability in
accordance with the company’s NY electric rate plan and changes in regulatory assets and liabilities in accordance with the company’s
electric rate plans. See Note B to the financial statements in Item 8.
(d) After adjusting for weather and other variations, electric delivery volumes in company’s service area increased 1.5 percent in 2022
compared with 2021. See “Coronavirus Disease 2019 (COVID-19) Impacts,” above.
Operating revenues increased $92 million in 2022 compared with 2021 primarily due to higher purchased power
expenses ($70 million) and higher revenues from the NY electric rate plan ($18 million).
Purchased power expenses increased $70 million in 2022 compared with 2021 due to higher unit costs ($59 million)
and purchased volumes ($11 million).
Other operations and maintenance expenses increased $26 million in 2022 compared with 2021 primarily due to
higher pension costs ($13 million), increased regulatory amortizations ($11 million) and higher stock-based
compensation ($2 million).
Depreciation and amortization increased $2 million in 2022 compared with 2021 primarily due to higher electric
utility plant balances.
Gas
O&R’s results of gas operations for the year ended December 31, 2022 compared with the year ended
December 31, 2021 were as follows:
68
CON EDISON ANNUAL REPORT 2022
(Millions of Dollars)
Operating revenues
Gas purchased for resale
Other operations and maintenance
Depreciation and amortization
Taxes, other than income taxes
Gas operating income
For the Years Ended December 31,
2022
$312
135
76
27
32
$42
2021
$260
88
64
26
32
$50
Variation
$52
47
12
1
—
$(8)
O&R’s gas sales and deliveries, excluding off-system sales, in 2022 compared with 2021 were:
Thousands of Dt Delivered
Revenues in Millions (a)
Description
Residential
General
Firm retail choice
customers
Total firm sales and
firm retail choice
Interruptible sales
Generation plants
Other
Other gas revenues
Total
For the Years Ended
December
31, 2022
December
31, 2021
12,588
2,766
11,500
2,498
Variation
1,088
268
Percent
Variation
9.5 %
10.7
6,396
7,584
(1,188)
(15.7)
21,750
3,911
21,582
3,820
10
673
—
26
468
—
26,344
25,896
168
91
(16)
205
—
448
0.8
(b)
2.4 %
(61.5)
43.8
—
For the Years Ended
December
31, 2022
December
31, 2021
Variation
$207
$162
38
45
290
6
—
1
15
28
55
245
6
—
1
8
$45
10
(10)
45
—
—
—
7
1.7 %
$312
$260
$52
Percent
Variation
27.8 %
35.7
(18.2)
18.4
—
—
—
87.5
20.0 %
(a) Revenues from NY gas sales are subject to a weather normalization clause and a revenue decoupling mechanism, as a result of which,
delivery revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved.
(b) After adjusting for weather and other variations, firm sales and firm retail choice volumes in the company’s service area increased 1.2
percent in 2022 compared with 2021. See “Coronavirus Disease 2019 (COVID-19) Impacts,” above.
Operating revenues increased $52 million in 2022 compared with 2021 primarily due to higher gas purchased for
resale ($47 million) and higher revenues from the NY gas rate plan ($13 million).
Gas purchased for resale increased $47 million in 2022 compared with 2021 due to higher unit costs ($35 million)
and purchased volumes ($12 million).
Other operations and maintenance expenses increased $12 million in 2022 compared with 2021 primarily due to
higher pension costs ($10 million) and higher stock-based compensation ($1 million).
Depreciation and amortization increased $1 million in 2022 compared with 2021 primarily due to higher gas utility
plant balances.
Taxes, Other Than Income Taxes
Taxes, other than income taxes, remained consistent in 2022 compared with 2021. The principal components of
taxes, other than income taxes, were:
(Millions of Dollars)
Property taxes
State and local taxes related to revenue receipts
Payroll taxes
Total
For the Years Ended December 31,
2022
$69
12
8
2021
$71
11
7
$89 (a)
$89 (a)
Variation
$(2)
1
1
$—
(a)
Including sales tax on customers’ bills, total taxes other than income taxes in 2022 and 2021 were $131 million and $129 million,
respectively.
Income Tax Expense
Income taxes increased $4 million in 2022 compared with 2021 primarily due to higher income before income tax
expense ($4 million) and higher state income taxes ($2 million), offset in part by an increase in the amortization of
excess deferred federal income taxes ($2 million).
CON EDISON ANNUAL REPORT 2022
69
Clean Energy Businesses
The Clean Energy Businesses were classified as held for sale as of December 31, 2022. See “Assets and Liabilities
Held for Sale” in Note A and Note X to the financial statements in Item 8. The Clean Energy Businesses’ results of
operations for the year ended December 31, 2022 compared with the year ended December 31, 2021 were as
follows:
(Millions of Dollars)
Operating revenues
Purchased power
Gas purchased for resale
Other operations and maintenance
Depreciation and amortization
Taxes, other than income taxes
Operating income
For the Years Ended December 31,
2022
$1,319
7
241
504
178
21
$368
2021
$1,022
—
62
475
231
18
$236
Variation
$297
7
179
29
(53)
3
$132
Operating revenues increased $297 million in 2022 compared with 2021 primarily due to higher wholesale revenues
($195 million), higher revenue from renewable electric projects ($92 million) and higher net mark-to-market values
($21 million), offset in part by lower energy services revenues ($11 million).
Gas purchased for resale increased $179 million in 2022 compared with 2021 primarily due to higher purchased
volumes.
Depreciation and amortization decreased $53 million in 2022 compared with 2021 primarily due to the company
ceasing to record depreciation and amortization in 2022 as the Clean Energy Businesses were classified as held for
sale as of December 31, 2022. See “Assets and Liabilities Held for Sale” in Note A and Note X to the financial
statements in Item 8.
Other operations and maintenance expenses increased $29 million in 2022 compared with 2021 primarily due to
higher costs from engineering, procurement and construction of renewable electric projects for customers.
Other Income (Deductions)
Other income (deductions) decreased $13 million in 2022 compared with 2021 primarily due to lower income in the
2022 period from an equity method investment in renewable electric projects accounted for under the HLBV method
of accounting.
Net Interest Expense
Net interest expense decreased $103 million in 2022 compared with 2021 primarily due to higher unrealized gains
on interest rate swaps in the 2022 period.
Income Tax Expense
Income taxes increased $40 million in 2022 compared with 2021 primarily due to higher income before income tax
expense ($50 million), higher state income taxes ($6 million), lower research and development credits ($3 million)
and an increase in the reserve for uncertain tax positions ($5 million), offset in part by a lower loss attributable to
non-controlling interest ($20 million) and higher renewable energy credits ($4 million).
Income (Loss) Attributable to Non-Controlling Interest
Income attributable to non-controlling interest decreased $92 million in 2022 compared with 2021 primarily due to
lower income in the 2021 period attributable to a tax equity investor in renewable electric projects accounted for
under the HLBV method of accounting. See Note S to the financial statements in Item 8.
Con Edison Transmission
Other operations and maintenance decreased $6 million in 2022 compared with 2021 primarily due to a goodwill
impairment loss on its investment in Honeoye in 2021. See Note K to the financial statements in Item 8.
Other Income (Deductions)
Other deductions decreased $426 million in 2022 compared with 2021 primarily due to losses in 2021 from CET’s
pre-tax impairment loss of ($212 million) on its investment in Stagecoach, pre-tax impairment loss of ($231 million)
70
CON EDISON ANNUAL REPORT 2022
on its investment in MVP in 2021, lower investment income in 2022 due to the sale of Stagecoach during 2021 ($19
million), offset in part by higher investment income from NY Transco ($4 million). See "Critical Accounting Estimates
- Investments" in Item 7 and "Investments" in Note A and Note W to the financial statement in Item 8.
Net Interest Expense
Net interest expense decreased $4 million in 2022 compared with 2021 primarily due to the repayment of an
intercompany loan from the parent company from a portion of the proceeds from the sale of Stagecoach in 2021.
Income Tax Expense
Income taxes increased $119 million in 2022 compared with 2021 primarily due to higher income before income tax
expense ($91 million), higher state income taxes ($27 million) and a remeasurement of deferred state income tax
assets and liabilities ($3 million), offset in part by lower amortization of excess deferred federal income taxes ($2
million).
Other
Taxes, Other Than Income Taxes
Taxes, other than income taxes increased $1 million in 2022 compared with 2021 primarily due to the settlement in
2022 of the NYC capital tax audit for the years 2015 through 2018 ($1 million).
Other Income (Deductions)
Other income (deductions) decreased $50 million in 2022 compared with 2021 primarily due to the transaction costs
at the parent company incurred from the sale of the Clean Energy Businesses ($49 million). See “Assets and
Liabilities Held for Sale” in Note A and Note X to the financial statements in Item 8.
Income Tax Expense
Income taxes increased $136 million in 2022 compared with 2021 primarily due to higher consolidated state income
taxes ($17 million), an increase in the valuation allowance on state and local net operating loss carryovers ($8
million) and a remeasurement of consolidated deferred state income tax assets and liabilities ($120 million), offset in
part by lower income before income tax expense ($8 million).
During the fourth quarter of 2022, Con Edison entered into a purchase and sale agreement pursuant to which
Con Edison agreed to sell the Clean Energy Businesses. See Note X to the financial statements in Item 8.
Con Edison analyzed the potential impact of the anticipated sale on its state apportionment factors and remeasured
its consolidated state tax liability. Based on estimates, Con Edison recorded an increase to its net deferred income
tax liabilities of $111 million, an increase in the valuation allowance on the deferred tax asset related to state net
operating loss carryforwards of $8 million and a corresponding deferred income tax expense of $119 million (net of
federal income taxes) in the fourth quarter of 2022. Con Edison also recorded a $9 million expense from a
remeasurement of state deferred liability due to other dispositions.
CON EDISON ANNUAL REPORT 2022
71
Year Ended December 31, 2021 Compared with Year Ended December 31, 2020
CECONY
(Millions of Dollars)
Operating revenues
Purchased power
Fuel
Gas purchased for resale
Other operations and maintenance
Depreciation and amortization
Taxes, other than income taxes
Operating income
For the Year Ended
December 31, 2021
For the Year Ended
December 31, 2020
Electric
Gas
Steam
2021
Total Electric
Gas
Steam
2020
Total
2021-2020
Variation
$8,806
$2,378
$532
$11,716
$8,103
$2,036
$508
$10,647
$1,069
1,588
156
—
1,919
1,286
2,055
—
—
541
368
326
497
$1,802
$646
45
73
—
165
93
144
$12
1,633
1,405
229
541
2,452
1,705
2,696
75
—
1,753
1,214
1,925
—
—
426
355
294
387
$2,460
$1,731
$574
27
81
—
161
90
144
$5
1,432
156
426
2,269
1,598
2,456
201
73
115
183
107
240
$2,310
$150
Electric
CECONY’s results of electric operations for the year ended December 31, 2021 compared with the year ended
December 31, 2020 were as follows:
(Millions of Dollars)
Operating revenues
Purchased power
Fuel
Other operations and maintenance
Depreciation and amortization
Taxes, other than income taxes
Electric operating income
For the Years Ended December 31,
2021
$8,806
1,588
156
1,919
1,286
2,055
2020
$8,103
1,405
75
1,753
1,214
1,925
$1,802
$1,731
Variation
$703
183
81
166
72
130
$71
CECONY’s electric sales and deliveries in 2021 compared with 2020 were:
Millions of kWh Delivered
Revenues in Millions (a)
For the Years Ended
For the Years Ended
Description
Residential/Religious (b)
Commercial/Industrial
Retail choice customers
NYPA, Municipal Agency and
other sales
Other operating revenues (c)
Total
December
31, 2021
December
31, 2020 Variation
Percent
Variation
December
31, 2021
December
31, 2020 Variation
Percent
Variation
$11,344
$11,107
9,250
21,549
9,185
—
9,280
22,000
9,184
—
237
(30)
(451)
1
—
2.1%
(0.3)
(2.1)
—
—
$3,100
2,174
2,613
708
211
$2,901
1,876
2,391
665
270
$51,328
$51,571
(243)
(0.5) % (d)
$8,806
$8,103
$199
298
222
43
(59)
$703
6.9%
15.9
9.3
6.5
(21.9)
8.7%
(a) Revenues from electric sales are subject to a revenue decoupling mechanism, as a result of which, delivery revenues are generally not
(b)
affected by changes in delivery volumes from levels assumed when rates were approved.
“Residential/Religious” generally includes single-family dwellings, individual apartments in multi-family dwellings, religious organizations
and certain other not-for-profit organizations.
(c) Other electric operating revenues generally reflect changes in the revenue decoupling mechanism current asset or regulatory liability and
changes in regulatory assets and liabilities in accordance with other provisions of the company’s rate plan.
(d) After adjusting for variations, primarily weather and billing days, electric delivery volumes in the company’s service area decreased 0.2
percent in 2021 compared with 2020. See “Coronavirus Disease 2019 (COVID-19) Impacts,” above.
Operating revenues increased $703 million in 2021 compared with 2020 primarily due to higher revenues from the
electric rate plan ($243 million), higher purchased power expenses ($183 million), higher fuel expenses ($81
million), higher late payment charges ($90 million), including charges that are being recovered pursuant to a
surcharge mechanism established as a result of the order issued by the NYSPSC in November 2021 and resuming
billing of late payment charges, and higher incentives earned under the earnings adjustment mechanisms and
positive incentives ($30 million). See "COVID-19 Regulatory Matters" in Note B to the financial statements in Item
8.
72
CON EDISON ANNUAL REPORT 2022
Purchased power expenses increased $183 million in 2021 compared with 2020 due to higher unit costs ($112
million) and purchased volumes ($72 million).
Fuel expenses increased $81 million in 2021 compared with 2020 due to higher unit costs ($79 million) and higher
purchased volumes from the company’s electric generating facilities ($3 million).
Other operations and maintenance expenses increased $166 million in 2021 compared with 2020 primarily due to
higher costs for pension and other postretirement benefits ($47 million), higher costs related to heat, storm and
emergency response ($50 million), higher stock-based compensation ($24 million), higher healthcare costs ($16
million) and higher municipal infrastructure support costs ($12 million).
Depreciation and amortization increased $72 million in 2021 compared with 2020 primarily due to higher electric
utility plant balances.
Taxes, other than income taxes increased $130 million in 2021 compared with 2020 primarily due to lower deferral
of under-collected property taxes ($53 million), higher property taxes ($52 million) and higher state and local taxes
($23 million).
CECONY’s results of gas operations for the year ended December 31, 2021 compared with the year ended
December 31, 2020 were as follows:
(Millions of Dollars)
Operating revenues
Gas purchased for resale
Other operations and maintenance
Depreciation and amortization
Taxes, other than income taxes
Gas operating income
For the Years Ended December 31,
2021
$2,378
541
368
326
497
$646
2020
$2,036
426
355
294
387
$574
Variation
$342
115
13
32
110
$72
CECONY’s gas sales and deliveries, excluding off-system sales, in 2021 compared with 2020 were:
Description
Residential
General
Firm retail choice customers
Total firm sales and firm
retail choice
Interruptible sales (c)
NYPA
Generation plants
Other
Other operating revenues (d)
Total
Thousands of Dt Delivered
Revenues in Millions (a)
For the Years Ended
For the Years Ended
December
31, 2021
December
31, 2020 Variation
Percent
Variation
December
31, 2021
December
31, 2020 Variation
Percent
Variation
50,690
30,947
76,765
48,999
29,516
76,614
1,691
1,431
151
3.5 %
4.8
0.2
$1,050
423
704
$911
318
649
158,402
155,129
3,273
2.1
(b)
2,177
1,878
5,927
43,094
47,620
20,251
—
8,482
(2,555)
(30.1) %
41,577
1,517
49,723
(2,103)
20,814
—
(563)
—
3.6
(4.2)
(2.7)
—
29
2
25
34
111
27
2
22
33
74
$139
15.3 %
105
55
299
2
—
3
1
37
33.0
8.5
15.9
7.4 %
—
13.6
3.0
50.0
275,294
275,725
(431)
(0.2) %
$2,378
$2,036
$342
16.8 %
(a) Revenues from gas sales are subject to a weather normalization clause and a revenue decoupling mechanism, as a result of which,
delivery revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved.
(b) After adjusting for variations, primarily billing days, firm gas sales and firm retail choice volumes in the company’s service area decreased
(c)
0.4 percent in 2021 compared with 2020. See “Coronavirus Disease 2019 (COVID-19) Impacts,” above.
Includes 1,921 thousands and 3,510 thousands of Dt for 2021 and 2020, respectively, which are also reflected in firm retail choice
customers and other.
(d) Other gas operating revenues generally reflect changes in the revenue decoupling mechanism and weather normalization clause current
asset or regulatory liability and changes in regulatory assets and liabilities in accordance with other provisions of the company’s rate plans.
See Note B to the financial statements in Item 8.
Operating revenues increased $342 million in 2021 compared with 2020 primarily due to higher gas revenues
under the company's gas rate plan ($200 million), higher gas purchased for resale expense ($115 million), higher
CON EDISON ANNUAL REPORT 2022
73
late payment charges ($16 million), including charges that are being recovered pursuant to a surcharge mechanism
established as a result of the order issued by the NYSPSC in November 2021 and resuming billing of late payment
charges, and higher incentives earned under gas adjustment mechanisms (EAMs) ($11 million). See "COVID-19
Regulatory Matters" in Note B to the financial statements in Item 8.
Gas purchased for resale increased $115 million in 2021 compared with 2020 due to higher unit costs ($106 million)
and higher purchased volumes ($8 million).
Other operations and maintenance expenses increased $13 million in 2021 compared with 2020 primarily due to
higher costs for pension and other postretirement benefits ($10 million), higher total surcharges for assessments
and fees that are collected in revenues from customers ($7 million) and higher stock-based compensation ($5
million), offset in part by lower municipal infrastructure support costs ($9 million).
Depreciation and amortization increased $32 million in 2021 compared with 2020 primarily due to higher gas utility
plant balances.
Taxes, other than income taxes increased $110 million in 2021 compared with 2020 primarily due to lower deferral
of under-collected property taxes ($68 million), higher property taxes ($30 million) and higher state and local taxes
($12 million).
Steam
CECONY’s results of steam operations for the year ended December 31, 2021 compared with the year ended
December 31, 2020 were as follows:
(Millions of Dollars)
Operating revenues
Purchased power
Fuel
Other operations and maintenance
Depreciation and amortization
Taxes, other than income taxes
Steam operating income
For the Years Ended December 31,
2021
$532
45
73
165
93
144
$12
2020
$508
27
81
161
90
144
$5
Variation
$24
18
(8)
4
3
—
$7
CECONY’s steam sales and deliveries in 2021 compared with 2020 were:
Millions of Pounds Delivered
Revenues in Millions
For the Years Ended
For the Years Ended
Description
General
Apartment house
Annual power
December
31, 2021
December
31, 2020 Variation
504
5,013
445
5,131
11,367
10,977
Percent
Variation
13.3 %
(2.3)
3.6
—
December
31, 2021
December
31, 2020 Variation
Percent
Variation
$25
137
340
30
$23
136
321
28
$2
1
19
2
8.7 %
0.7
5.9
7.1
2.0 % (b)
$532
$508
$24
4.7 %
59
(118)
390
—
331
Other operating revenues (a)
—
—
Total
16,884
16,553
(a) Other steam operating revenues generally reflect changes in regulatory assets and liabilities in accordance with the company’s rate plan.
See Note B to the financial statements in Item 8.
(b) After adjusting for variations, primarily weather and billing days, steam sales and deliveries in the company’s service area decreased 3.4
percent in 2021 compared with 2020. See “Coronavirus Disease 2019 (COVID-19) Impacts,” above.
Operating revenues increased $24 million in 2021 compared with 2020 primarily due to the impact of colder winter
weather ($21 million) and higher purchased power expenses ($18 million), offset in part by lower fuel expenses ($8
million) and tax law surcharge ($3 million).
Purchased power expenses increased $18 million in 2021 compared with 2020 due to higher unit costs ($13 million)
and purchased volumes ($5 million).
Fuel expenses decreased $8 million in 2021 compared with 2020 due to lower unit costs ($11 million), offset in part
by higher purchased volumes from the company’s steam generating facilities ($3 million).
74
CON EDISON ANNUAL REPORT 2022
Other operations and maintenance expenses increased $4 million in 2021 compared with 2020 primarily due to
higher costs for pension and other postretirement benefits ($4 million) and higher stock-based compensation ($2
million), offset in part by lower municipal infrastructure support costs ($1 million).
Depreciation and amortization increased $3 million in 2021 compared with 2020 primarily due to higher steam utility
plant balances.
Taxes, Other Than Income Taxes
At $2,696 million, taxes other than income taxes remain one of CECONY’s largest operating expenses. The
principal components of, and variations in, taxes other than income taxes were:
(Millions of Dollars)
Property taxes
State and local taxes related to revenue receipts
Payroll taxes
Other taxes
Total
For the Years Ended December 31,
2021
$2,215
373
65
43
2020
$2,129
338
64
(75)
$2,696 (a)
$2,456 (a)
Variation
$86
35
1
118
$240
(a)
Including sales tax on customers’ bills, total taxes other than income taxes in 2021 and 2020 were $3,296 million and $2,989 million,
respectively.
Other Income (Deductions)
Other deductions decreased $63 million in 2021 compared with 2020 primarily due to lower costs associated with
components of pension and other postretirement benefits other than service cost ($61 million).
Net Interest Expense
Net interest expense increased $23 million in 2021 compared with 2020 primarily due to higher interest on long-term
debt ($42 million), offset in part by lower interest accrued on the system benefit charge liability ($7 million), lower
interest expense for short-term debt ($4 million), lower interest on deposits ($3 million) and lower interest accrued
on deferred storm costs ($2 million).
Income Tax Expense
Income taxes increased $31 million in 2021 compared with 2020 primarily due to higher income before income tax
expense ($40 million) and higher state income taxes ($9 million), offset in part by a higher favorable tax adjustment
in 2021 for the prior year tax return primarily due to an increase in the general business tax credit ($6 million),
higher tax benefits in 2021 from research credits ($5 million) and the absence of the amortization of deficit deferred
state income taxes in 2020 ($6 million).
CON EDISON ANNUAL REPORT 2022
75
O&R
(Millions of Dollars)
Operating revenues
Purchased power
Gas purchased for resale
Other operations and maintenance
Depreciation and amortization
Taxes, other than income taxes
Operating income
For the Year Ended
December 31, 2021
For the Year Ended
December 31, 2020
Electric
$681
Gas
$260
206
—
249
69
57
—
88
64
26
32
2021
Total
$941
206
88
313
95
89
$100
$50
$150
Electric
$629
Gas
$233
2020
Total
2021-2020
Variation
169
—
242
65
54
$99
$862
169
61
310
90
85
—
61
68
25
31
$48
$147
$79
37
27
3
5
4
$3
Electric
O&R’s results of electric operations for the year ended December 31, 2021 compared with the year ended
December 31, 2020 were as follows:
(Millions of Dollars)
Operating revenues
Purchased power
Other operations and maintenance
Depreciation and amortization
Taxes, other than income taxes
Electric operating income
For the Years Ended December 31,
2021
$681
206
249
69
57
$100
2020
$629
169
242
65
54
$99
Variation
$52
37
7
4
3
$1
O&R’s electric sales and deliveries in 2021 compared with 2020 were:
Millions of kWh Delivered
Revenues in Millions (a)
For the Years Ended
For the Years Ended
Description
Residential/Religious (b)
Commercial/Industrial
Retail choice customers
Public authorities
Other operating revenues (c)
Total
December
31, 2021
December
31, 2020 Variation
1,742
850
2,839
110
—
1,786
820
2,621
107
—
5,541
5,334
(44)
30
218
3
—
207
Percent
Variation
(2.5%)
3.7
8.3
2.8
—
December
31, 2021
December
31, 2020 Variation
$331
111
223
11
5
$318
117
186
7
1
$13
(6)
37
4
4
3.9 % (d)
$681
$629
$52
Percent
Variation
4.1%
(5.1)
19.9
57.1
Large
8.3 %
(a) O&R’s NY electric delivery revenues are subject to a revenue decoupling mechanism, as a result of which delivery revenues are generally
not affected by changes in delivery volumes from levels assumed when rates were approved. Effective July 2021, the majority of O&R’s
electric distribution revenues in NJ are subject to a conservation incentive program, as a result of which distribution revenues are generally
not affected by changes in delivery volumes from levels assumed when rates were approved. O&R’s electric transmission revenues in NJ
are not subject to a conservation incentive program, and as a result, changes in such volumes do impact revenues.
“Residential/Religious” generally includes single-family dwellings, individual apartments in multi-family dwellings, religious organizations
and certain other not-for-profit organizations.
(b)
(c) Other electric operating revenues generally reflect changes in the revenue decoupling mechanism current asset or regulatory liability in
accordance with the company’s NY electric rate plan and changes in regulatory assets and liabilities in accordance with the company’s
electric rate plans. See Note B to the financial statements in Item 8.
(d) After adjusting for weather and other variations, electric delivery volumes in company’s service area increased 1.1 percent in 2021
compared with 2020. See “Coronavirus Disease 2019 (COVID-19) Impacts,” above.
Operating revenues increased $52 million in 2021 compared with 2020 primarily due to higher purchased power
expenses ($37 million) and higher revenues from the NY electric rate plan ($13 million).
Purchased power expenses increased $37 million in 2021 compared with 2020 due to higher unit costs ($35 million)
and purchased volumes ($2 million).
Other operations and maintenance expenses increased $7 million in 2021 compared with 2020 primarily due to
higher storm-related costs.
76
CON EDISON ANNUAL REPORT 2022
Depreciation and amortization increased $4 million in 2021 compared with 2020 primarily due to higher electric
utility plant balances.
Taxes, other than income taxes increased $3 million in 2021 compared with 2020 primarily due to higher property
taxes ($2 million).
Gas
O&R’s results of gas operations for the year ended December 31, 2021 compared with the year ended December
31, 2020 were as follows:
(Millions of Dollars)
Operating revenues
Gas purchased for resale
Other operations and maintenance
Depreciation and amortization
Taxes, other than income taxes
Gas operating income
For the Years Ended December 31,
2021
$260
88
64
26
32
$50
2020
$233
61
68
25
31
$48
Variation
$27
27
(4)
1
1
$2
O&R’s gas sales and deliveries, excluding off-system sales, in 2021 compared with 2020 were:
Description
Residential
General
Firm retail choice
customers
Total firm sales and
firm retail choice
Interruptible sales
Generation plants
Other
Other gas revenues
Total
Thousands of Dt Delivered
Revenues in Millions (a)
For the Years Ended
December
31, 2021
December
31, 2020
11,500
2,498
9,736
2,142
Variation
1,764
356
Percent
Variation
18.1 %
16.6
7,584
8,271
(687)
(8.3)
21,582
3,820
20,149
3,632
26
468
—
59
658
—
1,433
7.1
(b)
188
(33)
(190)
—
5.2 %
(55.9)
(28.9)
—
25,896
24,498
1,398
5.7 %
For the Years Ended
December
31, 2021
December
31, 2020
Variation
$162
28
55
245
6
—
1
8
$260
121
20
62
203
6
—
1
23
233
$41
8
(7)
42
—
—
—
(15)
$27
Percent
Variation
33.9 %
40.0
(11.3)
20.7
— %
—
—
(65.2)
11.6 %
(a) Revenues from NY gas sales are subject to a weather normalization clause and a revenue decoupling mechanism, as a result of which,
delivery revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved.
(b) After adjusting for weather and other variations, firm sales and firm retail choice volumes in the company’s service area increased 0.2
percent in 2021 compared with 2020. See “Coronavirus Disease 2019 (COVID-19) Impacts,” above.
Operating revenues increased $27 million in 2021 compared with 2020 primarily due to higher gas purchased for
resale expense.
Gas purchased for resale increased $27 million in 2021 compared with 2020 due to higher unit costs ($15 million)
and purchased volumes ($12 million).
Other operations and maintenance expenses decreased $4 million in 2021 compared with 2020 primarily due to
lower pension costs ($2 million) and lower spending on gas programs ($2 million).
Depreciation and amortization increased $1 million in 2021 compared with 2020 primarily due to higher gas utility
plant balances.
Taxes, other than income taxes increased $1 million in 2021 compared with 2020 primarily due to higher
property taxes.
CON EDISON ANNUAL REPORT 2022
77
Taxes, Other Than Income Taxes
Taxes, other than income taxes, increased $4 million in 2021 compared with 2020. The principal components of
taxes, other than income taxes, were:
(Millions of Dollars)
Property taxes
State and local taxes related to revenue receipts
Payroll taxes
Total
For the Years Ended December 31,
2021
$71
11
7
2020
$69
10
6
$89 (a)
$85 (a)
Variation
$2
1
1
$4
(a)
Including sales tax on customers’ bills, total taxes other than income taxes in 2021 and 2020 were $129 million and $121 million,
respectively.
Income Tax Expense
Income taxes remained unchanged in 2021 compared with 2020 primarily due to higher income before income tax
expense ($1 million) entirely offset by lower state income taxes, primarily due to a decrease in the amortization of
New York’s metropolitan transportation business tax surcharge in 2021 ($1 million).
Clean Energy Businesses
The Clean Energy Businesses were classified as held for sale as of December 31, 2022. See “Assets and Liabilities
Held for Sale” in Note A and Note X to the financial statements in Item 8. The Clean Energy Businesses’ results of
operations for the year ended December 31, 2021 compared with the year ended December 31, 2020 were as
follows:
(Millions of Dollars)
Operating revenues
Gas purchased for resale
Other operations and maintenance
Depreciation and amortization
Taxes, other than income taxes
Operating income
For the Years Ended December 31,
2021
$1,022
62
475
231
18
$236
2020
$736
41
228
231
21
$215
Variation
$286
21
247
—
(3)
$21
Operating revenues increased $286 million in 2021 compared with 2020 primarily due to higher revenue from
renewable electric projects ($211 million), higher wholesale revenues ($35 million) and higher energy services
revenues ($47 million), offset in part by lower net mark-to-market values ($7 million).
Gas purchased for resale increased $21 million in 2021 compared with 2020 primarily due to higher purchased
volumes.
Other operations and maintenance expenses increased $247 million in 2021 compared with 2020 primarily due to
higher costs from engineering, procurement and construction of renewable electric projects for customers.
Other Income (Deductions)
Other income (deductions) decreased $14 million in 2021 compared with 2020 primarily due to lower income in the
2021 period from an equity method investment in renewable electric projects accounted for under the HLBV method
of accounting.
Net Interest Expense
Net interest expense decreased $128 million in 2021 compared with 2020 primarily due to lower unrealized losses
on interest rate swaps in the 2021 period.
78
CON EDISON ANNUAL REPORT 2022
Income Tax Expense
Income taxes increased $88 million in 2021 compared with 2020 primarily due to higher income before income tax
expense ($30 million), lower income attributable to non-controlling interest ($47 million), higher state income taxes
($7 million) and the absence of a tax benefit due to the change in the federal corporate income tax rate recognized
for a loss carryback from the 2018 tax year to the 2013 tax year as allowed under the CARES Act signed into law
during the first quarter of 2020 ($4 million). See Note L to the financial statements in Item 8.
Income (Loss) Attributable to Non-Controlling Interest
Income attributable to non-controlling interest decreased $195 million in 2021 compared with 2020 primarily due to
lower income in the 2021 period attributable to a tax equity investor in renewable electric projects accounted for
under the HLBV method of accounting. See Note S to the financial statements in Item 8.
Con Edison Transmission
Other operations and maintenance increased $8 million in 2021 compared with 2020 primarily due to a goodwill
impairment loss on its investment in Honeoye in 2021. See Note K to the financial statements in Item 8.
Other Income (Deductions)
Other deductions decreased $192 million in 2021 compared with 2020 primarily due to lower losses in 2021 from
CET’s pre-tax impairment loss of $212 million on its investment in Stagecoach, pre-tax impairment loss of $231
million on its investment in MVP in 2021, lower investment income in 2021 due to the sale of Stagecoach during
2021 ($19 million) and foregoing AFUDC income from MVP starting January 2021 until significant construction
resumes ($60 million), compared to the pre-tax impairment loss of $320 million on its investment in MVP in 2020.
See "Critical Accounting Estimates - Investments" in Item 7 and "Investments" in Note A and Note W to the financial
statement in Item 8.
Net Interest Expense
Net interest expense decreased $9 million in 2021 compared with 2020 primarily due to the repayment of an
intercompany loan from the parent company from a portion of the proceeds from the sale of Stagecoach.
Income Tax Expense
Income taxes decreased $48 million in 2021 compared with 2020 primarily due to lower income before income tax
expense ($40 million), lower state income taxes ($12 million), offset in part by higher amortization of excess
deferred federal income taxes in 2021 ($2 million).
Other
Taxes, Other Than Income Taxes
Taxes, other than income taxes decreased $6 million in 2021 compared with 2020 primarily due to adjustments
made to the New York City capital tax for prior periods in the 2020 period.
Other Income (Deductions)
Other income (deductions) increased $4 million in 2021 compared with 2020 primarily due to the elimination of
CECONY's goodwill impairment related to Con Edison Transmission's investment in Honeoye.
Income Tax Expense
Income taxes increased $29 million in 2021 compared with 2020 primarily due to higher income before income tax
expense ($2 million), lower consolidated state income tax benefits in 2021 ($16 million) and the absence of a
change to the New York City valuation allowance in 2021 ($10 million).
During the fourth quarter of 2020, Con Edison reversed a portion of its valuation allowance that was recorded
against the deferred tax asset established for the New York City NOL. Management has reassessed its ability to
realize a portion of the deferred tax benefits generated primarily by its renewable energy projects due to the future
reversal of temporary differences associated with the accelerated tax depreciation and by implementing its strategy
to secure tax equity financing from third parties for which certain tax deductions and amortization will be specifically
allocated to members outside of the consolidated group.
CON EDISON ANNUAL REPORT 2022
79
Liquidity and Capital Resources
The Companies’ liquidity reflects cash flows from operating, investing and financing activities, as shown on their
respective consolidated statements of cash flows and as discussed below.
The principal factors affecting Con Edison’s liquidity are its investments in the Utilities, the Clean Energy Businesses
and Con Edison Transmission, the dividends it pays to its shareholders and the dividends it receives from its
subsidiaries and cash flows from financing activities discussed below.
The principal factors affecting CECONY’s liquidity are its cash flows from operating activities, cash used in investing
activities (including construction expenditures), the dividends it pays to Con Edison and cash flows from financing
activities discussed below.
The Companies generally maintain minimal cash balances and use short-term borrowings to meet their working
capital needs and other cash requirements. The Companies repay their short-term borrowings using funds from
long-term financings and operating activities. The Utilities’ cost of capital, including working capital, is reflected in
the rates they charge to their customers.
Each of the Companies believes that it will be able to meet its reasonably likely short-term and long-term cash
requirements. See “The Companies Require Access To Capital Markets To Satisfy Funding Requirements,”
"Changes To Tax Laws Could Adversely Affect the Companies," “The Companies Face Risks Related to Health
Epidemics And Other Outbreaks, Including The COVID-19 Pandemic,” and “The Companies Also Face Other Risks
That Are Beyond Their Control” in Item 1A, and “Capital Requirements and Resources” in Item 1.
80
CON EDISON ANNUAL REPORT 2022
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CON EDISON ANNUAL REPORT 2022
81
Cash Flows from Operating Activities
The Utilities’ cash flows from operating activities primarily reflect their energy sales and deliveries and cost of
operations. The volume of energy sales and deliveries is primarily affected by factors external to the Utilities, such
as customer demand, weather, market prices for energy and economic conditions. Measures that promote
distributed energy resources, such as distributed generation, demand reduction and energy efficiency, also affect
the volume of energy sales and deliveries. See "Competition" and "Environmental Matters – Clean Energy Future –
Reforming the Energy Vision" and “Environmental Matters – Climate Change” in Item 1.
During 2020 and 2021, the decline in business activity in the Utilities’ service territory due to the COVID-19
pandemic and the Utilities' suspension of service disconnections, bill collection activities and certain charges and
fees resulted in a slower recovery of cash from outstanding customer accounts receivable balances, material
increases in customer accounts receivable balances, increases to the allowance for uncollectible accounts, and
may result in increases to write-offs of customer accounts, as compared to prior to the COVID-19 pandemic. Under
the revenue decoupling mechanisms in the Utilities’ NY electric and gas rate plans, changes in delivery volumes
from levels assumed when rates were approved may affect the timing of cash flows, but largely not net income. The
prices at which the Utilities provide energy to their customers are determined in accordance with their rate plans.
However, increases in electric and gas commodity prices, coupled with the decline in business activity due to the
COVID-19 pandemic, may further contribute to a slower recovery of cash from outstanding customer accounts
receivable balances, increases to the allowance for uncollectible accounts, and increases to write-offs of customer
accounts receivable balances. In general, changes in the Utilities’ cost of purchased power, fuel and gas may affect
the timing of cash flows, but not net income, because the costs are recovered in accordance with rate plans. See
“Recoverable Energy Costs” in Note A to the financial statements in Item 8.
The Utilities’ NY rate plans allow them to defer costs resulting from a change in legislation, regulation and related
actions that have taken effect during the term of the rate plans once the costs exceed a specified threshold.
Increases to the allowance for uncollectible accounts related to the COVID-19 pandemic have been deferred
pursuant to the legislative, regulatory and related actions provisions of their rate plans. In November 2021, the
NYSPSC issued an order establishing a surcharge recovery mechanism commencing December 1, 2021 through
December 31, 2022 for CECONY to collect late payment charges and fees that were not billed for the year ended
December 31, 2020 due to the COVID-19 pandemic. The order also established a surcharge recovery or sur-credit
mechanism for any fee deferrals for 2021 and 2022. In April 2022, the NYSPSC approved the October 2021 joint
proposal for new electric and gas rates for O&R for the three-year period from January 2022 through December
2024 (the Joint Proposal) that includes certain COVID-19 provisions, such as: recovery of 2020 late payment
charges over three years; reconciliation of late payment charges to amounts reflected in rates for years 2021
through 2024; and reconciliation of write-offs of customer accounts receivable balances to amounts reflected in
rates from January 1, 2020 through December 31, 2024. In June 2022 and January 2023, the NYSPSC issued
orders implementing COVID-19 arrears assistance programs that provides credits towards the arrears balances of
electric and gas customers of CECONY and O&R. See “The Companies Face Risks Related To Health Epidemics
And Other Outbreaks, Including The COVID-19 Pandemic,” in Item 1A, “Rate Plans,” "COVID-19 Regulatory
Matters" and “Other Regulatory Matters” in Note B to the financial statements in Item 8 and "Coronavirus Disease
2019 (COVID-19) Impacts - Liquidity and Financing," above.
Pursuant to their rate plans, the Utilities have recovered from customers a portion of the tax liability they will pay in
the future as a result of temporary differences between the book and tax basis of assets and liabilities. These
temporary differences affect the timing of cash flows, but not net income, as the Companies are required to record
deferred tax assets and liabilities at the current corporate tax rate for the temporary differences. For the Utilities,
credits to their customers of the net benefits of the TCJA, including the reduction of the corporate tax rate to 21
percent, decrease cash flows from operating activities. Pursuant to their rate plans, the Utilities also recover from
customers the amount of property taxes they will pay. The payment of property taxes by the Utilities affects the
timing of cash flows and increases the amount of short-term borrowings issued by the Utilities when property taxes
are due and as property taxes increase, but generally does not impact net income. See “Changes To Tax Laws
Could Adversely Affect the Companies,” in Item 1A, “Federal Income Tax” in Note A, “Rate Plans” in Note B,
"COVID-19 Regulatory Matters" in Note B, “Other Regulatory Matters” in Note B and Note L to the financial
statements in Item 8 and "Coronavirus Disease 2019 (COVID-19) Impacts - Liquidity and Financing," above.
The Clean Energy Businesses were classified as held for sale as of December 31, 2022. See “Assets and Liabilities
Held for Sale” in Note A and Note X to the financial statements in Item 8.
Net income is the result of cash and non-cash (or accrual) transactions. Only cash transactions affect the
Companies’ cash flows from operating activities. Principal non-cash charges or credits include depreciation,
deferred income tax expense, amortizations of certain regulatory assets and liabilities and accrued unbilled
revenue. Non-cash charges or credits may also be accrued under the revenue decoupling and cost reconciliation
mechanisms in the Utilities’ NY electric and gas rate plans. See “Rate Plans – CECONY– Electric and Gas" and
82
CON EDISON ANNUAL REPORT 2022
"Rate Plans – O&R New York – Electric and Gas” in Note B to the financial statements in Item 8. For Con Edison,
2021 net income also included non-cash losses recognized with respect to impairments of Con Edison
Transmission’s investments in MVP, Stagecoach and Honeoye. For Con Edison, 2020 net income included a non-
cash loss recognized with respect to a partial impairment of Con Edison Transmission’s investment in MVP. See
“Investments” in Note A and Note K to the financial statements in Item 8.
Net cash flows from operating activities in 2022 for Con Edison and CECONY were $1,202 million and $1,077
million higher, respectively, than in 2021. The changes in net cash flows for Con Edison and CECONY primarily
reflect an increase in accounts payable ($514 million and $257 million, respectively), lower pension and retiree
benefit contributions ($433 million and $407 million, respectively) and lower prepayments, other receivables and
other current assets ($265 million and $410 million, respectively).
Net cash flows from operating activities in 2021 for Con Edison and CECONY were $535 million and $493 million
higher, respectively, than in 2020. The changes in net cash flows for Con Edison and CECONY primarily reflect a
lower increase of accounts receivable balances from customers, net of allowance for uncollectible accounts ($223
million and $196 million, respectively) (see “COVID-19 Regulatory Matters” in Note B to the financial statements in
Item 8 and “Coronavirus Disease 2019 (COVID-19) Impacts - Accounting Considerations” and “Liquidity and
Financing,” above), higher recoveries of depreciation expense ($112 million and $107 million, respectively), lower
system benefit charge ($85 million and $80 million, respectively), lower superfund and environmental remediation
costs ($12 million and $12 million, respectively) and lower pension and retiree benefit contributions ($6 million and
$5 million, respectively). For Con Edison, changes in net cash flows reflects lower other receivables and other
current assets ($31 million), lower taxes receivable ($19 million), lower revenue decoupling receivable ($8 million),
offset in part by a change in pension and retiree benefit obligations, net ($19 million) and for CECONY, a change in
pension and retiree benefit obligations, net ($30 million).
The change in net cash flows also reflects the timing of payments for and recovery of energy costs. This timing is
reflected within changes to accounts receivable – customers, recoverable and refundable energy costs within other
regulatory assets and liabilities and accounts payable balances.
Cash Flows Used in Investing Activities
Net cash flows used in investing activities for Con Edison and CECONY were $1,081 million and $197 million
higher, respectively, in 2022 than in 2021. The change for Con Edison primarily reflects a decrease due to receiving
proceeds from the completion of the sale of Stagecoach in 2021 ($629 million), higher utility construction
expenditures ($194 million) and a decrease due to receiving proceeds from the divestiture of renewable electric
projects at the Clean Energy Businesses in 2021 ($183 million). The change for CECONY primarily reflects an
increase in utility construction expenditures ($183 million). Pursuant to their rate plans, the Utilities recover the cost
of utility construction expenditures from customers, including an approved rate of return (before and after being
placed in service and or AFUDC before being placed in service). Increases in the amount of utility construction
expenditures may temporarily increase the amount of short-term debt issued by the Utilities prior to the long-term
financing of such amounts.
Net cash flows used in investing activities for Con Edison and CECONY were $740 million lower and $313 million
higher, respectively, in 2021 than in 2020. The change for Con Edison primarily reflects proceeds from the
completion of the sale of Stagecoach ($629 million), a decrease in non-utility construction expenditures at the Clean
Energy Businesses ($261 million) and proceeds from the divestiture of renewable electric projects at the Clean
Energy Businesses ($183 million), offset in part by an increase in utility construction expenditures at CECONY
($301 million) and O&R ($3 million). Pursuant to their rate plans, the Utilities recover the cost of utility construction
expenditures from customers, including an approved rate of return (before and after being placed in service and or
AFUDC before being placed in service). Increases in the amount of utility construction expenditures may temporarily
increase the amount of short-term debt issued by the Utilities prior to the long-term financing of such amounts.
Cash Flows From Financing Activities
Net cash flows from financing activities in 2022 for Con Edison and CECONY were $553 million and $597 million
lower, respectively, than in 2021. Net cash flows from financing activities in 2021 for Con Edison and CECONY were
$1,784 million higher and $461 million lower, respectively, than in 2020.
Net cash flows from financing activities during the years ended December 31, 2022, 2021 and 2020 reflect the
following Con Edison transactions:
CON EDISON ANNUAL REPORT 2022
83
2022
•
2020
•
•
•
•
•
Entered into and borrowed $400 million under a 364-Day Senior Unsecured Term Loan Credit Agreement, the
proceeds from which were used for general corporate purposes. See Note D to the financial statements in Item
8;
Redeemed at maturity $293 million of 8.71 percent senior unsecured notes.
2021
•
Issued 10,100,000 shares of its common stock resulting in net proceeds of approximately $775 million, after
issuance expenses. The net proceeds from the sale of the common shares were invested by Con Edison in
CECONY, for funding of its construction expenditures and for its other general corporate purposes;
• Redeemed at maturity $500 million of 2.00 percent 5-year debentures with proceeds from a $500 million
borrowing under an April 2021 Credit Agreement, which Con Edison prepaid in full in July 2021; and
• Optionally prepaid the remaining $675 million outstanding under a February 2019 term loan prior to its maturity
in June 2021.
Issued 1,050,000 shares of its common shares for $88 million upon physical settlement of the remaining shares
subject to its May 2019 forward sale agreement. Con Edison used the proceeds to invest in CECONY for
funding of its capital requirements and other general corporate purposes;
Borrowed $820 million pursuant to a credit agreement that was converted to a term loan (the “July 2020 Term
Loan”). Con Edison used the proceeds from the borrowing for general corporate purposes, including repayment
of short-term debt bearing interest at variable rates. The July 2020 Term Loan was prepaid in full in December
2020;
Issued 7,200,000 common shares resulting in net proceeds of $553 million, after issuance expenses. The net
proceeds from the sale of the common shares, together with the net proceeds from the sale of $650 million
aggregate principal amount of 0.65 percent debentures due 2023, were used to prepay in full the July 2020
Term Loan. The remaining net proceeds from the sale of the common shares were invested by Con Edison in its
subsidiaries, principally CECONY and O&R, and for other general corporate purposes; and
Issued $650 million aggregate principal amount of 0.65 percent debentures, due 2023, with an option to redeem
at par, in whole or in part, on or after December 1, 2021. The proceeds from the $650 million refinancing,
together with a portion of the proceeds from the sale of common shares, were used to prepay in full the July
2020 Term Loan.
Con Edison’s cash flows from financing activities in 2022, 2021 and 2020 also reflect the proceeds, and reduction in
cash used for reinvested dividends, resulting from the issuance of common shares under the company’s dividend
reinvestment, stock purchase and long-term incentive plans of $88 million, $109 million and $106 million,
respectively.
Net cash flows from financing activities during the years ended December 31, 2022, 2021 and 2020 reflect the
following CECONY transactions:
2022
•
Issued $700 million aggregate principal amount of 6.15 percent debentures, due 2052, the net proceeds from
the sale of which were used to repay short-term borrowings and for other general corporate purposes.
2021
•
•
•
Issued $600 million aggregate principal amount of 3.20 percent debentures, due 2051, the net proceeds from
the sale of which were used to repay short-term borrowings and for other general corporate purposes;
Issued $900 million aggregate principal amount of 2.40 percent debentures, due 2031, the aggregate
net proceeds from the sales of which were used to redeem at maturity its $640 million floating rate 3-year
debentures and for other general corporate purposes, including repayment of short-term debt; and
Issued $750 million aggregate principal amount of 3.60 percent debentures, due 2061, the net proceeds from
the sale of which will be used to pay or reimburse the payment of, in whole or in part, existing and new
qualifying eligible green expenditures, such as energy efficiency and clean transportation expenditures, that
include those funded on or after January 1, 2021 until the maturity date of the debentures. Pending the
allocation of the net proceeds to finance or refinance eligible green expenditures, CECONY used the net
proceeds for repayment of short-term debt and temporarily placed the remaining net proceeds in short-term
interest-bearing instruments.
84
CON EDISON ANNUAL REPORT 2022
2020
•
•
•
Issued $600 million aggregate principal amount of 3.00 percent debentures, due 2060, the net proceeds from
the sale of which were used to repay short-term borrowings and for other general corporate purposes;
Redeemed at maturity $350 million of 4.45 percent 10-year debentures; and
Issued $600 million aggregate principal amount of 3.35 percent debentures, due 2030 and $1,000 million
aggregate principal amount of 3.95 percent debentures, due 2050, the net proceeds from the sale of which will
be used to pay or reimburse the payment of, in whole or in part, existing and new qualifying eligible green
expenditures, such as energy efficiency and clean transportation expenditures, that include those funded on or
after January 1, 2018 until the maturity date of each series of the debentures. Pending the allocation of the net
proceeds to finance or refinance eligible green expenditures, CECONY used a portion of the net proceeds for
repayment of short-term debt and temporarily placed the remaining net proceeds in short-term interest-bearing
instruments.
Net cash flows from financing activities during the years ended December 31, 2022, 2021 and 2020 also reflect the
following O&R transactions:
2022
•
Issued $100 million aggregate principal amount of 5.70 percent debentures, due 2032, the net proceeds from
the sale of which were used to repay short-term borrowings and for other general corporate purposes.
2021
•
Issued $45 million aggregate principal amount of 2.31 percent debentures, due 2031 and $30 million aggregate
principal amount of 3.17 percent debentures, due 2051, the net proceeds from the sales of which were used to
repay short-term borrowings and for other general corporate purposes.
2020
•
Issued $35 million aggregate principal amount of 2.02 percent debentures, due 2030, and $40 million aggregate
principal amount of 3.24 percent debentures, due 2050, the net proceeds from the sales of which were used to
repay short-term borrowings and for other general corporate purposes.
Net cash flows from financing activities during the years ended December 31, 2022, 2021 and 2020 also reflect the
following Clean Energy Businesses transactions:
2022
•
Entered into and borrowed $150 million under a 364-Day Senior Unsecured Term Loan Credit Agreement
guaranteed by Con Edison, the proceeds from which were used for general corporate purposes;
2021
•
Borrowed $250 million at a variable rate, due 2028, secured by equity interests in four of the company’s solar
electric production projects, the interest rate for which was swapped to a fixed rate of 3.39 percent;
Entered into an agreement with a tax equity investor for the financing of a portfolio of three of the Clean Energy
Businesses’ solar electric production projects (CED Nevada Virginia). Under the financing, the tax equity
investor acquired a noncontrolling interest in the portfolio and will receive a percentage of earnings, tax
attributes and cash flows. As of December 31, 2021, the tax equity investor fully funded its $263 million
financing obligation. The Clean Energy Businesses will continue to consolidate this entity and will report the
noncontrolling tax equity investor’s interest in the tax equity arrangement. See Note Q to the financial
statements in Item 8;
Prepaid in full $249 million of borrowings outstanding under, and terminated, a $613 million variable-rate
construction loan facility that was secured by and used to fund construction costs for CED Nevada Virginia; and
Issued $229 million aggregate principal amount of 3.77 percent senior notes, due 2046, secured by equity
interests in CED Nevada Virginia.
•
•
•
2020
•
Borrowed $165 million under a $613 million variable-rate construction loan facility that was terminated in 2021
that was secured by and used to fund construction costs for CED Nevada Virginia.
CON EDISON ANNUAL REPORT 2022
85
Cash flows from financing activities of the Companies also reflect commercial paper issuance. The commercial
paper amounts outstanding at December 31, 2022, 2021 and 2020 and the average daily balances for 2022, 2021
and 2020 for Con Edison and CECONY were as follows:
(Millions of Dollars, except
Weighted Average Yield)
Con Edison
CECONY
Weighted average yield
2022
2021
2020
Outstanding at
December 31
Daily
average
Outstanding at
December 31
Daily
average
Outstanding at
December 31
$2,640
$2,300
4.8%
$1,485
$1,306
2.3%
$1,488
$1,361
0.3%
$1,189
$1,082
0.2%
$1,705
$1,660
0.3%
Daily
average
$980
$678
1.0%
Common stock issuances and external borrowings are sources of liquidity that could be affected by changes in
credit ratings, financial performance and capital market conditions. For information about the Companies’ credit
ratings and certain financial ratios, see “Capital Requirements and Resources” in Item 1.
Capital Requirements and Resources
For information about capital requirements, contractual obligations and capital resources, see “Capital
Requirements and Resources” in Item 1.
Assets, Liabilities and Equity
The Companies’ assets, liabilities and equity at December 31, 2022 and 2021 are summarized as follows:
CECONY
O&R
Clean Energy
Businesses (c)
Con Edison
Transmission
Other (a)
Con Edison (b)
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
(Millions of Dollars)
ASSETS
Current assets
Investments
Net plant
Other noncurrent assets
7,648
5,731
421
377
$5,247
$4,703
$332
$290
$879
$542
539
608
20
26
—
—
44,011
41,613
2,738
2,599
4,718
1,627
4,367
1,645
$4
286
17
7
$2
223
17
7
$6,510
$14
$12,972
$5,551
(4)
(4,718)
(1,217)
(4)
—
841
853
46,766
48,596
356
8,486
8,116
Total Assets
$57,445
$52,655 $3,511 $3,292 $7,224 $6,554
$314
$249
$571
$366
$69,065
$63,116
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Noncurrent liabilities
Long-term debt
Equity
$6,036
15,451
19,080
16,878
$4,321
$409
$372 $1,596 $1,011
$163
$100
$3,132 $(377)
$11,336
13,640
1,103
1,064
18,382
1,068
16,312
931
968
888
338
2,292
2,998
121
2,607
2,815
(86)
—
237
(90)
(113)
— (2,293)
239
(155)
14
647
82
16,693
20,147
20,889
$5,427
14,749
22,604
20,336
Total Liabilities and Equity
$57,445
$52,655 $3,511 $3,292 $7,224 $6,554
$314
$249
$571
$366
$69,065
$63,116
(a) Includes parent company and consolidation adjustments.
(b) Represents the consolidated results of operations of Con Edison and its businesses.
(c) The Clean Energy Businesses were classified as held for sale as of December 31, 2022.
CECONY
Current assets at December 31, 2022 were $544 million higher than at December 31, 2021. The change in current
assets primarily reflects increases in accounts receivables, net of allowance for uncollectible accounts ($258 million)
(see “COVID-19 Regulatory Matters” in Note B to the financial statements in Item 8 and “Coronavirus Disease 2019
(COVID-19) Impacts - Accounting Considerations” and “Liquidity and Financing,” above), an increase in cash and
temporary cash investments ($136 million), higher fuel oil, gas in storage, materials and supplies, at average cost
($71 million), an increase in other receivables, net of allowance for uncollectible accounts ($26 million) and an
increase to accrued unbilled revenue ($24 million).
Investments at December 31, 2022 were $69 million lower than at December 31, 2021. The change in investments
primarily reflects decreases in supplemental retirement income plan assets ($60 million) and deferred income plan
assets ($9 million). See "Investments" in Note A and Note E to the financial statements in Item 8.
Net plant at December 31, 2022 was $2,398 million higher than at December 31, 2021. The change in net plant
primarily reflects an increase in electric ($1,790 million), gas ($1,017 million), steam ($107 million) and general ($25
86
CON EDISON ANNUAL REPORT 2022
million) plant balances and an increase in construction work in progress ($283 million), offset in part by an increase
in accumulated depreciation ($824 million).
Other noncurrent assets at December 31, 2022 were $1,917 million higher than at December 31, 2021. The change
in other noncurrent assets primarily reflects an increase in pension and retiree benefits ($1,507 million) and an
increase in the regulatory asset for system peak reduction and energy efficiency programs ($496 million), partially
offset in part by property tax reconciliation ($81 million) and deferred derivative losses ($19 million). The change in
the regulatory asset also reflects the period's amortization of accounting costs. See Notes B, E, and F to the
financial statements in Item 8.
Current liabilities at December 31, 2022 were $1,715 million higher than at December 31, 2021. The change in
current liabilities primarily reflects increases in notes payable ($939 million), accounts payable ($478 million),
deferred derivative gains ($155 million) and accrued taxes to affiliated companies ($79 million).
Noncurrent liabilities at December 31, 2022 were $1,811 million higher than at December 31, 2021. The change in
noncurrent liabilities primarily reflects an increase in regulatory liabilities for unrecognized other postretirement costs
($1,536 million), allowance for cost of removal less salvage ($104 million) and pension and other postretirement
benefit deferrals ($43 million), offset in part by a decrease in the liability for pension and retiree benefits ($143
million) as a result of the final actuarial valuation of the pension and other retiree benefit plans, as measured at
December 31, 2022, in accordance with the accounting rules for retirement benefits. See Notes E and F to the
financial statements in Item 8.
Long-term debt at December 31, 2022 was $698 million higher than at December 31, 2021. The change in long-
term debt primarily reflects the November 2022 issuance of $700 million of debentures. See "Liquidity and Capital
Resources - Cash Flows From Financing Activities" above and Note C to the financial statements in Item 8.
Equity at December 31, 2022 was $566 million higher than at December 31, 2021. The change in equity primarily
reflects net income for the year ($1,390 million) and capital contributions from parent ($150 million) in 2022, offset in
part by common stock dividends to parent ($978 million) in 2022.
O&R
Current assets at December 31, 2022 were $42 million higher than at December 31, 2021. The change in current
assets primarily reflects increases in accrued unbilled revenue ($20 million), gas in storage, at average cost ($12
million) and temporary cash investments ($6 million) and accounts receivables, net of allowance for uncollectible
accounts ($2 million) (see “COVID-19 Regulatory Matters” in Note B to the financial statements in Item 8 and
“Coronavirus Disease 2019 (COVID-19) Impacts - Accounting Considerations” and “Liquidity and Financing,”
above).
Net plant at December 31, 2022 was $139 million higher than at December 31, 2021. The change in net plant
primarily reflects an increase in electric ($91 million), gas ($59 million), and general ($10 million) plant balances and
an increase in construction work in progress ($48 million), offset in part by an increase in accumulated depreciation
($69 million).
Other noncurrent assets at December 31, 2022 were $44 million higher than at December 31, 2021. The change in
other noncurrent assets primarily reflects an increase in pension and retiree benefits ($56 million) and an increase
in other deferred charges and noncurrent assets ($6 million), offset in part by a decrease in regulatory assets ($18
million).
Current liabilities at December 31, 2022 were $37 million higher than at December 31, 2020. The change in current
liabilities primarily reflects an increase in accounts payables ($43 million), regulatory liabilities ($15 million) and
accounts payables to affiliates ($11 million), offset in part by a decrease in notes payable ($18 million) and system
benefit charge ($12 million).
CON EDISON ANNUAL REPORT 2022
87
Noncurrent liabilities at December 31, 2022 were $39 million higher than at December 31, 2021. The change in
noncurrent liabilities primarily reflects an increase in the regulatory liabilities for unrecognized pension and other
postretirement costs ($13 million), allowance for cost of removal less salvage ($12 million) and long-term deferred
derivative gains ($9 million).
Long-term debt at December 31, 2022 was $100 million higher than at December 31, 2021. The change in long-
term debt reflects the November 2022 issuance of $100 million of debentures. See "Liquidity and Capital Resources
- Cash Flows From Financing Activities" above.
Equity at December 31, 2022 was $43 million higher than at December 31, 2021. The change in equity primarily
reflects net income for the year ($88 million) and an increase in other comprehensive income ($12 million), offset in
part by common stock dividends to parent ($57 million) in 2022.
Clean Energy Businesses
Current assets at December 31, 2022 were $337 million higher than at December 31, 2021. The change in current
assets primarily reflects increases in other receivables ($125 million), restricted cash ($69 million), accrued unbilled
revenue ($48 million), other currents assets ($42 million) and prepayments ($11 million).
Net plant at December 31, 2022 was $351 million higher than at December 31, 2021. The change in net plant
primarily reflects the divestiture of renewable electric projects in 2021.
Other noncurrent assets at December 31, 2022 were $18 million lower than at December 31, 2021. The change in
other noncurrent assets primarily reflects decreases in intangible assets ($71 million) and other long noncurrent
assets ($27 million), offset in part by an increase in the long-term fair value of derivative assets ($78 million).
Current liabilities at December 31, 2022 were $585 million higher than at December 31, 2021. The change in
current liabilities primarily reflects increases in accounts payable ($223 million), current long term debt ($206 million)
and term loan ($150 million), offset in part by a decrease in the fair value of derivative liabilities ($36 million).
Noncurrent liabilities at December 31, 2022 were $217 million higher than at December 31, 2021. The change in
noncurrent liabilities primarily reflects an increase in deferred taxes ($250 million), offset in part by a decrease in the
fair value of derivative liabilities ($30 million).
Long-term debt at December 31, 2022 was $315 million lower than at December 31, 2021. The change in long-term
debt primarily reflects the timing of principal loan repayments.
Equity at December 31, 2022 was $183 million higher than at December 31, 2021. The change in equity primarily
reflects an increase in net income for common stock ($382 million) offset in part by a decrease in noncontrolling tax
equity interest ($97 million) and common stock dividends to parent ($98 million) in 2022.
Con Edison Transmission
Investments at December 31, 2022 were $63 million higher than at December 31, 2021. The increase in
investments primarily reflects the additional investment in NY Transco ($64 million).
Current liabilities at December 31, 2022 were $63 million higher than at December 31, 2021. The change in current
liabilities primarily reflects an increase in short-term borrowings under an intercompany capital funding facility.
Noncurrent liabilities at December 31, 2022 were $4 million higher than at December 31, 2021. The change in
noncurrent liabilities reflects primarily the remeasurement of deferred state income taxes related to prior year
dispositions ($4 million). See "Investments - 2020 and 2021 Partial Impairments of Investment in Mountain Valley
Pipeline, LLC (MVP)” in Note A to the financial statements in Item 8.
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CON EDISON ANNUAL REPORT 2022
Regulatory Matters
For information about the Utilities’ rate plans and other regulatory matters affecting the Companies, see “Utility
Regulation” in Item 1 and Note B to the financial statements in Item 8.
Risk Factors
The Companies’ businesses are influenced by many factors that are difficult to predict, and that involve
uncertainties that may materially affect actual operating results, cash flows and financial condition. See “Risk
Factors” in Item 1A.
Critical Accounting Estimates
The Companies’ financial statements reflect the application of certain critical accounting estimates, which conform
to accounting principles generally accepted in the United States of America. The Companies’ critical accounting
estimates include assumptions applied to accounting for: pensions and other postretirement benefits, contingencies,
derivative instruments, investments, allowance for uncollectible accounts receivable, asset retirement obligations,
and for Con Edison, the use of the hypothetical liquidation at book value method. Also, see “Summary of Significant
Accounting Policies and Other Matters” in Note A to the financial statements in Item 8.
Accounting for Pensions and Other Postretirement Benefits
The Utilities provide pensions and other postretirement benefits to substantially all of their employees and retirees.
The Clean Energy Businesses and Con Edison Transmission also provide such benefits to transferred employees
who previously worked for the Utilities. The Companies account for these benefits in accordance with the
accounting rules for retirement benefits. In addition, the Utilities apply the accounting rules for regulated operations
to account for the regulatory treatment of these obligations (which, as described in Note B to the financial
statements in Item 8, reconciles the amounts reflected in rates for the costs of the benefit to the costs actually
incurred). In applying these accounting policies, the Companies have made critical estimates related to actuarial
assumptions, including assumptions of expected returns on plan assets, discount rates, health care cost trends and
future compensation. See Notes A, E and F to the financial statements in Item 8 for information about the
Companies’ pension and other postretirement benefits, the actuarial assumptions, actual performance, amortization
of investment and other actuarial gains and losses and calculated plan costs for 2022, 2021 and 2020.
The discount rate for determining the present value of future period benefit payments is determined using a
model to match the durations of Aa rated (by either Moody’s or S&P) corporate bonds with the projected stream of
benefit payments.
In determining the health care cost trend rate, the Companies review actual recent cost trends and projected
future trends.
The cost of pension and other postretirement benefits in future periods will depend on actual returns on plan assets,
assumptions for future periods, contributions and benefit experience. Con Edison’s and CECONY’s current
estimates for 2023 are decreases, compared with 2022, in their pension and other postretirement benefits costs of
$543 million and $515 million, respectively, largely driven by increases in the discount rates used to determine plan
liabilities. See Notes E and F to the financial statements in Item 8.
The following table illustrates the effect on 2023 pension and other postretirement costs of changing the critical
actuarial assumptions, while holding all other actuarial assumptions constant:
CON EDISON ANNUAL REPORT 2022
89
Actuarial Assumption
Increase in accounting cost:
Discount rate
Con Edison
CECONY
Expected return on plan assets
Con Edison
CECONY
Health care trend rate
Con Edison
CECONY
Increase in projected benefit obligation:
Discount rate
Con Edison
CECONY
Health care trend rate
Con Edison
CECONY
Change in
Assumption
Other
Postretirement
Benefits
Pension
(Millions of Dollars)
(0.25) %
(0.25) %
(0.25) %
(0.25) %
1.00%
1.00%
(0.25) %
(0.25) %
1.00%
1.00%
$36
$34
$41
$39
$—
$—
$375
$356
$—
$—
$2
$1
$3
$2
$20
$18
$25
$21
$117
$103
Total
$38
$35
$44
$41
$20
$18
$400
$377
$117
$103
A 5 percentage point variation in the actual annual return in 2023, as compared with the expected annual asset
return of 6.75 percent, would change pension and other postretirement benefit costs for Con Edison and CECONY
by approximately $26 million and $25 million, respectively, in 2024.
Pension benefits are provided through a pension plan maintained by Con Edison to which CECONY, O&R, the
Clean Energy Businesses and Con Edison Transmission make contributions for their participating employees.
Pension accounting by the Utilities includes an allocation of plan assets.
The Companies’ policy is to fund their pension and other postretirement benefit accounting costs to the extent tax
deductible, and for the Utilities, to the extent these costs are recovered under their rate plans. The Companies were
not required to make cash contributions to the pension plan in 2022 under funding regulations and tax laws.
However, CECONY and O&R made discretionary contributions to the pension plan in 2022 of $17 million and $13
million, respectively. In 2023, CECONY and O&R expect to make contributions to the pension plan of $8 million and
$2 million, respectively. See “Expected Contributions” in Notes E and F to the financial statements in Item 8.
Accounting for Contingencies
The accounting rules for contingencies apply to an existing condition, situation or set of circumstances involving
uncertainty as to possible loss that will ultimately be resolved when one or more future events occur or fail to occur.
Known material contingencies, which are described in the notes to the financial statements, include certain
regulatory matters (Note B), the Utilities’ responsibility for hazardous substances, such as asbestos, PCBs and coal
tar that have been used or generated in the course of operations (Note G) and other contingencies (Note H). Inputs
to the estimation of the liability for such environmental remediation include the possible selected remedy for each
site where investigation is ongoing, the inflation rate related to the cost of inputs to the remediation process, and for
those sites where there are other potentially responsible parties, the allocation of costs to the Companies. Inputs to
the estimation of the liability for certain regulatory matters include facts specific to each item and the status and
progress of discussions with the applicable state regulator. Inputs to the estimation of the liability for other
contingencies may include liabilities incurred for similar circumstances and the outcome of legal proceedings. In
accordance with the accounting rules, the Companies have accrued estimates of losses relating to the
contingencies as to which loss is probable and can be reasonably estimated, and no liability has been accrued for
contingencies as to which loss is not probable or cannot be reasonably estimated.
The Utilities recover costs for asbestos lawsuits, workers’ compensation and environmental remediation pursuant to
their current rate plans. Generally, changes during the terms of the rate plans to the amounts accrued for these
contingencies would not impact earnings.
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CON EDISON ANNUAL REPORT 2022
Accounting for Derivative Instruments
The Companies apply the accounting rules for derivatives and hedging to their derivative financial instruments. The
Companies use derivative financial instruments to hedge market price fluctuations in related underlying transactions
for the physical purchase and sale of electricity and gas. The Utilities are permitted by their respective regulators to
reflect in rates all reasonably incurred gains and losses on these instruments. The Clean Energy Businesses have
also hedged interest rate risk on certain debt securities. See “Financial and Commodity Market Risks,” below and
Note P to the financial statements in Item 8.
Where the Companies are required to make mark-to-market estimates pursuant to the accounting rules, the
estimates of gains and losses at a particular period end do not reflect the end results of particular transactions and
will most likely not reflect the actual gain or loss at the conclusion of a transaction. Substantially all of the estimated
gains or losses are based on prices supplied by external sources such as the fair value of exchange-traded futures
and options and the fair value of positions for which price quotations are available through or derived from brokers
or other market sources. See Note Q to the financial statements in Item 8.
Investments
The accounting rules require Con Edison to periodically evaluate its equity method investments, to determine
whether they are impaired. The standard for determining whether an impairment exists and must be recorded is
whether an other-than-temporary decline in carrying value has occurred. The evaluation and measurement of
impairments involve uncertainties. The estimates that Con Edison makes with respect to its equity method
investments are based on assumptions that management believes are reasonable, and variations in these
estimates or the underlying assumptions could have a material impact on whether a triggering event is determined
to exist or the amount of any such impairment. Additionally, if the projects in which Con Edison holds these
investments recognize an impairment, Con Edison may record its proportionate share of that impairment loss and
would evaluate its investment for an other-than-temporary decline in value.
Con Edison evaluated its equity method investments and concluded that as of December 31, 2020 and 2021 that
the fair value of its investment in Mountain Valley Pipeline, LLC (MVP) declined below its carrying value and the
decline is other-than-temporary. Accordingly, Con Edison recorded pre-tax impairment losses of $320 million ($223
million after tax) and $231 million ($162 million after tax) for the years ended December 31, 2020 and 2021,
respectively, that reduced the carrying value of its investment in MVP from $662 million to $342 million with an
associated deferred tax asset of $53 million for the year ended December 31, 2020 and from $342 million to $111
million with an additional $77 million associated deferred tax asset for the year ended December 31, 2021, totaling a
deferred tax asset of $130 million at period end. See “Investments - 2020 and 2021 Partial Impairments of
Investment in Mountain Valley Pipeline, LLC (MVP)” in Note A to the financial statements in Item 8.
There is risk that the fair value of Con Edison’s investment in MVP may be further or fully impaired in the future.
There are ongoing legal and regulatory matters that must be resolved favorably before the project can be
completed. Assumptions and estimates used to test Con Edison’s investment in MVP for impairment, including the
likelihood of project completion, may change if adverse or delayed resolutions to the Project’s pending legal and
regulatory challenges were to occur, which could have a material adverse effect on the fair value of Con Edison’s
investment in MVP.
In May 2021, a subsidiary of Con Edison Gas Pipeline and Storage, LLC (CET) entered into a purchase and sale
agreement pursuant to which the subsidiary and its joint venture partner agreed to sell their combined interests in
Stagecoach Gas Services LLC (Stagecoach) for a total of $1,225 million, of which $629 million was attributed to
CET for its 50 percent interest, subject to closing adjustments. The purchase and sale agreement contemplated a
two-stage closing, the first of which was completed in July 2021 and the second of which was completed in
November 2021.
As a result of information made available to Stagecoach as part of the sale process, Stagecoach performed
impairment tests that resulted in Stagecoach recording impairment charges of $414 million for the year ended
December 31, 2021. Accordingly, Con Edison recorded pre-tax impairment losses on its 50 percent interest in
Stagecoach of $212 million ($147 million after-tax), including working capital and transaction cost adjustments,
within "Investment income/(loss)" on Con Edison's consolidated income statement for the year ended December 31,
2021.
Stagecoach’s impairment charges and information obtained from the sales process constituted triggering events for
Con Edison's investment in Stagecoach as of March 31, 2021 and June 30, 2021. Con Edison evaluated the
carrying value of its investment in Stagecoach for other-than-temporary declines in value using income and market-
based approaches. Con Edison determined that the carrying value of its investment in Stagecoach of $667 million
CON EDISON ANNUAL REPORT 2022
91
and $630 million as of March 31, 2021 and June 30, 2021, respectively, was not impaired. The carrying value of
$630 million at June 30, 2021 reflected the final sales price received in July 2021 and the remaining amount
received in November 2021, including closing adjustments.
At December 31, 2022 and 2021, Con Edison’s consolidated balance sheet included investments of $841 million
and $853 million, respectively. See “Investments” in Note A and Note W to the financial statements in Item 8.
Allowance for Uncollectible Accounts
The Companies develop expected loss estimates using past events data and consider current conditions and future
reasonable and supportable forecasts. For the Utilities’ customer accounts receivable allowance for uncollectible
accounts, past events considered include write-offs relative to customer accounts receivable; current conditions
include macro-and micro-economic conditions related to trends in the local economy, bankruptcy rates and aged
customer accounts receivable balances, among other factors; and forecasts about the future include assumptions
related to the level of write-offs and recoveries. From January 1, 2020 to December 31, 2022, the historical write-off
rate was determined based on an historical weather event with a significant impact to the Companies’ service
territory. During that period, Con Edison's and CECONY's allowances for uncollectible accounts increased from $70
million and $65 million, respectively to $322 million and $314 million, respectively. See "COVID-19 Regulatory
Matters" in Note B and “Allowance for Uncollectible Accounts" in Note N to the financial statements in Item 8.
Asset Retirement Obligations (AROs)
AROs are computed as the present value of the estimated costs for an asset's future retirement and are recorded in
the period in which the liability is incurred. The estimated costs are capitalized as part of the related long-lived asset
and depreciated over the asset's useful life. CECONY and O&R, as rate-regulated entities, recognize Regulatory
Assets or Liabilities as a result of timing differences between the recording of costs and costs recovered through the
ratemaking process. Because quoted market prices are not available for AROs, the Companies estimate the fair
value of AROs by calculating discounted cash flows that are dependent upon various assumptions including
estimated retirement dates, discount rates, inflation rates, the timing and amount of future cash outlays, and
currently available technologies.
The Companies recorded asset retirement obligations associated with the removal of asbestos and asbestos-
containing material in their buildings (other than the structures enclosing generating stations and substations),
electric equipment and steam and gas distribution systems. The Companies also recorded asset retirement
obligations relating to gas and oil pipelines abandoned in place and municipal infrastructure support. See Note T to
the financial statements in Item 8.
A 1% increase in the assumed inflation rate used to value the ARO liability as of December 31, 2022 would increase
the liability by $29 million for Con Edison and CECONY.
Hypothetical Liquidation at Book Value (HLBV)
For certain investments of the Clean Energy Businesses, Con Edison has determined that the use of HLBV
accounting is reasonable and appropriate to attribute income and loss to the tax equity investors. Using the HLBV
method, the company's earnings from the projects are adjusted to reflect the income or loss allocable to the tax
equity investors calculated based on how the project would allocate and distribute its cash if it were to sell all of its
assets for their carrying amounts and liquidate at a particular point in time. Under the HLBV method, the company
calculates the liquidation value allocable to the tax equity investors at the beginning and end of each period based
on contractual liquidation waterfall calculations and adjusts its income for the period to reflect the change in the
liquidation value allocable to the tax equity investors based on the terms of the partnerships' operating agreements.
The Clean Energy Businesses were classified as held for sale as of December 31, 2022. See "Assets and Liabilities
Held for Sale" in Note A, Notes S and X to the financial statements in Item 8.
Financial and Commodity Market Risks
The Companies are subject to various risks and uncertainties associated with financial and commodity markets.
The most significant market risks include interest rate risk, commodity price risk and investment risk.
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CON EDISON ANNUAL REPORT 2022
Interest Rate Risk
The Companies' interest rate risk primarily relates to new debt financing needed to fund capital requirements,
including the construction expenditures of the Utilities and maturing debt securities, and variable-rate debt.
Con Edison and its subsidiaries manage interest rate risk through the issuance of mostly fixed-rate debt with varying
maturities and through opportunistic refinancing of debt. The Clean Energy Businesses use interest rate swaps to
exchange variable-rate project financed debt for a fixed interest rate. See Note Q to the financial statements in Item
8. Con Edison and CECONY estimate that at December 31, 2022, a 10 percent increase in interest rates applicable
to its variable rate debt would result in an increase in annual interest expense of $17 million and $13 million,
respectively. The increase in annual interest expense pertaining to Con Edison includes $1 million attributable to the
Clean Energy Businesses. Debt of the Clean Energy Businesses was classified as held for sale on Con Edison's
Consolidated Balance Sheet as of December 31, 2022. See "Assets and Liabilities Held for Sale" in Note A and Note
X to the financial statements in Item 8. Under CECONY’s current electric, gas and steam rate plans, variations in
actual variable rate tax-exempt debt interest expense, including costs associated with the refinancing of the variable
rate tax-exempt debt, are reconciled to levels reflected in rates.
Inflationary pressure has prompted the Federal Reserve to increase interest rates. Higher interest rates have
resulted in, and are expected to continue to result in, increased interest expense on commercial paper and variable-
rate debt. Higher interest rates are also expected to increase interest expense on future long-term debt issuances.
Commodity Price Risk
Con Edison’s commodity price risk primarily relates to the purchase and sale of electricity, gas and related derivative
instruments. The Utilities and the Clean Energy Businesses apply risk management strategies to mitigate their
related exposures. See Note P to the financial statements in Item 8.
Con Edison estimates that, as of December 31, 2022, a 10 percent decline in market prices would result in a decline
in fair value of $214 million for the derivative instruments used by the Utilities to hedge purchases of electricity and
gas, of which $199 million is for CECONY and $15 million is for O&R. Con Edison expects that any such change in
fair value would be largely offset by directionally opposite changes in the cost of the electricity and gas purchased.
The Utilities do not make any margin or profit on the electricity or gas they sell. In accordance with provisions
approved by state regulators, the Utilities generally recover from full-service customers the costs they incur for
energy purchased for those customers, including gains and losses on certain derivative instruments used to hedge
energy purchased and related costs. See “Recoverable Energy Costs” in Note A to the financial statements in Item
8. However, increases in electric and gas commodity prices may contribute to a slower recovery of cash from
outstanding customer accounts receivable balances and increases to the allowance for uncollectible accounts, and
may result in increases to write-offs of customer accounts receivable balances.
In February 2022, the NYSPSC, in response to higher customer bills, requested that CECONY enhance its efforts to
mitigate customer bill volatility due to commodity price increases by reassessing its power supply billing practices
and improve communications to customers regarding forecasted significant bill increases resulting from commodity
price increases. In August 2022, the NYSPSC approved CECONY's March 2022 request to amend its electric tariff,
effective June 1, 2022, to change how CECONY recovers the cost of electricity supplied to its full-service electric
customers to reduce the likelihood of customer bill volatility by more closely aligning supply prices with CECONY's
electric supply hedging positions. CECONY has also committed to provide notice to customers in cases where
supply price increases could result in significantly higher bills.
In September 2022, in anticipation of commodity price volatility and potential oil supply disruption during the
upcoming winter heating season, the NYSPSC requested, and CECONY and O&R have since taken, the following
measures: advise their dual-fuel customers and power operators to fill their alternate fuel tanks; inspect by
November 1, 2022 the alternate fuel tanks of interruptible gas customers where human needs are served to ensure
they have adequate alternate supply; review their emergency plans to address alternate fuel supply disruptions of
interruptible gas customers during peak gas demand; and promote bill payment assistance and energy use
reduction programs.
The Clean Energy Businesses use a value-at-risk (VaR) model to assess the market price risk of their portfolio of
electricity and gas commodity fixed-price purchase and sales commitments, physical forward contracts, generating
assets and commodity derivative instruments. The Clean Energy Businesses were classified as held for sale as of
December 31, 2022. See "Assets and Liabilities Held for Sale" in Note A and Note X to the financial statements in
Item 8. VaR represents the potential change in fair value of the portfolio due to changes in market prices for a
CON EDISON ANNUAL REPORT 2022
93
specified time period and confidence level. These businesses estimate VaR across their portfolio using a delta-
normal variance/covariance model with a 95 percent confidence level, compare the measured VaR results against
performance due to actual prices and stress test the portfolio each quarter using an assumed 30 percent price
change from forecast. Since the VaR calculation involves complex methodologies and estimates and assumptions
that are based on past experience, it is not necessarily indicative of future results. VaR for the portfolio, assuming a
one-day holding period, for the years ended December 31, 2022 and 2021, respectively, was as follows:
95% Confidence Level, One-Day Holding Period
Average for the period
High
Low
2022
2021
(Millions of Dollars)
$1
2
—
$1
3
—
Investment Risk
The Companies’ investment risk relates to the investment of plan assets for their pension and other postretirement
benefit plans. Con Edison's investment risk also relates to the investments of Con Edison Transmission that are
accounted for under the equity method. See “Critical Accounting Estimates – Accounting for Pensions and Other
Postretirement Benefits,” above and “Investments” in Note A and Notes E and F to the financial statements in
Item 8.
The Companies’ current investment policy for pension plan assets includes investment targets of 28 to 38 percent
equity securities, 42 to 60 percent debt securities, 12 to 22 percent alternatives. At December 31, 2022, the pension
plan investments consisted of 32 percent equity securities, 48 percent debt securities and 20 percent alternatives.
For the Utilities’ pension and other postretirement benefit plans, regulatory accounting treatment is generally applied
in accordance with the accounting rules for regulated operations. In accordance with the Statement of Policy issued
by the NYSPSC and its current electric, gas and steam rate plans, CECONY defers for payment to or recovery from
customers the difference between the pension and other postretirement benefit expenses and the amounts for such
expenses reflected in rates. O&R also defers such difference pursuant to its NY rate plans.
Environmental Matters
For information concerning climate change, environmental sustainability, potential liabilities arising from laws and
regulations protecting the environment and other environmental matters, see “Environmental Matters” in Item 1 and
Note G to the financial statements in Item 8.
Material Contingencies
For information concerning potential liabilities arising from the Companies’ material contingencies, see “Critical
Accounting Estimates – Accounting for Contingencies,” above, and Notes B, G and H to the financial statements in
Item 8.
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CON EDISON ANNUAL REPORT 2022
Item 7A: Quantitative and Qualitative Disclosures about Market Risk
Con Edison
For information about Con Edison’s primary market risks associated with activities in derivative financial
instruments, other financial instruments and derivative commodity instruments, see “Financial and Commodity
Market Risks,” in Item 7 (which information is incorporated herein by reference). See also “The Companies Require
Access To Capital Markets To Satisfy Funding Requirements,” in Item 1A.
CECONY
For information about CECONY’s primary market risks associated with activities in derivative financial instruments,
other financial instruments and derivative commodity instruments, see “Financial and Commodity Market Risks” in
Item 7 (which information is incorporated herein by reference). See also “The Companies Require Access To Capital
Markets To Satisfy Funding Requirements,” in Item 1A.
CON EDISON ANNUAL REPORT 2022
95
Item 8: Financial Statements and Supplementary Data
Financial Statements
Supplementary Financial Information
Con Edison
Report of Management on Internal Control Over Financial Reporting
Report of Independent Registered Public Accounting Firm (PCAOB ID 238)
Consolidated Income Statement for the years ended December 31, 2022, 2021, and 2020
Consolidated Statement of Comprehensive Income for the years ended December 31, 2022, 2021 and 2020
Consolidated Statement of Cash Flows for the years ended December 31, 2022, 2021 and 2020
Consolidated Balance Sheet at December 31, 2022 and 2021
Consolidated Statement of Equity for the years ended December 31, 2022, 2021 and 2020
Consolidated Statement of Capitalization at December 31, 2022 and 2021
CECONY
Report of Management on Internal Control Over Financial Reporting
Report of Independent Registered Public Accounting Firm (PCAOB ID 238)
Consolidated Income Statement for the years ended December 31, 2022, 2021 and 2020
Consolidated Statement of Comprehensive Income for the years ended December 31, 2022, 2021 and 2020
Consolidated Statement of Cash Flows for the years ended December 31, 2022, 2021 and 2020
Consolidated Balance Sheet at December 31, 2022 and 2021
Consolidated Statement of Shareholder’s Equity for the years ended December 31, 2022, 2021 and 2020
Consolidated Statement of Capitalization at December 31, 2022 and 2021
Notes to the Financial Statements
Financial Statement Schedules
Con Edison
Schedule I - Condensed Financial Information of Consolidated Edison, Inc. at December 31, 2022 and 2021 and for the
years ended December 31, 2022, 2021 and 2020
Schedule II - Valuation and Qualifying Accounts for the years ended December 31, 2022, 2021 and 2020
CECONY
Schedule II - Valuation and Qualifying Accounts for the years ended December 31, 2022, 2021 and 2020
Page
98
99
101
102
103
104
106
107
110
111
113
114
115
116
118
119
121
196
199
199
All other schedules are omitted because they are not applicable or the required information is shown in financial
statements or notes thereto.
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CON EDISON ANNUAL REPORT 2022
Supplementary Financial Information
Selected Quarterly Financial Data for the years ended December 31, 2022 and 2021 (Unaudited)
Con Edison
Operating revenues
Operating income
Net income for common stock
Basic earnings per share
Diluted earnings per share
.
Con Edison
Operating revenues
Operating income
Net income for common stock
Basic earnings per share
Diluted earnings per share
2022
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
(Millions of Dollars, except per share amounts)
$4,060
799
554
$1.70
$1.70
$3,415
387
254
$0.72
$0.72
$4,165
889
619
$1.73
$1.72
$4,031
550
190
$0.53
$0.52
2021
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
(Millions of Dollars, except per share amounts)
$3,677
860
419
$1.23
$1.22
$2,971
418
165
$0.48
$0.48
$3,613
850
538
$1.52
$1.52
$3,415
697
224
$0.63
$0.63
In the opinion of Con Edison, these quarterly amounts include all adjustments, consisting only of normal recurring
accruals, necessary for a fair presentation. The sum of the quarterly financial information may vary from the annual
data due to rounding.
CECONY
Operating revenues
Operating income
Net income
CECONY
Operating revenues
Operating income
Net income
2022
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
(Millions of Dollars)
$3,517
$2,906
$3,549
$3,296
711
475
280
170
738
493
406
252
2021
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
(Millions of Dollars)
$3,205
$2,486
$3,092
$2,932
786
465
321
128
728
418
624
333
In the opinion of CECONY, these quarterly amounts include all adjustments, consisting only of normal recurring
accruals, necessary for a fair presentation. The sum of the quarterly financial information may vary from the annual
data due to rounding.
CON EDISON ANNUAL REPORT 2022
97
Report of Management on Internal Control Over Financial Reporting
Management of Consolidated Edison, Inc. and its subsidiaries (the Company) is responsible for establishing and
maintaining adequate internal control over financial reporting. Internal control over financial reporting is a process
designed to provide reasonable, but not absolute, assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with accounting principles generally
accepted in the United States of America.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.
Also, projections of the effectiveness of controls to future periods are subject to the risk that controls may become
inadequate because of changes in conditions, or that the degree of compliance with policies or procedures may
deteriorate.
Management of the Company assessed the effectiveness of internal control over financial reporting as of
December 31, 2022, using the criteria established by the Committee of Sponsoring Organizations of the Treadway
Commission (COSO) in Internal Control — Integrated Framework (2013). Based on that assessment, management
has concluded that the Company had effective internal control over financial reporting as of December 31, 2022.
The effectiveness of the Company’s internal control over financial reporting as of December 31, 2022, has been
audited by PricewaterhouseCoopers LLP, the Company’s independent registered public accounting firm, as stated
in their report which appears on the following page of this Annual Report on Form 10-K.
/s/ Timothy P. Cawley
Timothy P. Cawley
Chairman, President and Chief Executive Officer
/s/ Robert Hoglund
Robert Hoglund
Senior Vice President and Chief Financial Officer
February 16, 2023
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CON EDISON ANNUAL REPORT 2022
Report of Independent Registered Public Accounting Firm
To the Board of Directors and Shareholders of Consolidated Edison, Inc.:
Opinions on the Financial Statements and Internal Control over Financial Reporting
We have audited the consolidated financial statements, including the related notes and financial statement
schedules, of Consolidated Edison, Inc. and its subsidiaries (the “Company”), as listed in the index appearing under
Item 8 (collectively referred to as the “consolidated financial statements”). We also have audited the Company's
internal control over financial reporting as of December 31, 2022, based on criteria established in Internal Control -
Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission
(COSO).
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the
financial position of the Company as of December 31, 2022 and 2021, and the results of its operations and its cash
flows for each of the three years in the period ended December 31, 2022 in conformity with accounting principles
generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material
respects, effective internal control over financial reporting as of December 31, 2022, based on criteria established in
Internal Control - Integrated Framework (2013) issued by the COSO.
Basis for Opinions
The Company's management is responsible for these consolidated financial statements, for maintaining effective
internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial
reporting, included in the accompanying Report of Management on Internal Control Over Financial Reporting. Our
responsibility is to express opinions on the Company’s consolidated financial statements and on the Company's
internal control over financial reporting based on our audits. We are a public accounting firm registered with the
Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with
respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations
of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan
and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free
of material misstatement, whether due to error or fraud, and whether effective internal control over financial
reporting was maintained in all material respects.
Our audits of the consolidated financial statements included performing procedures to assess the risks of material
misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures
that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts
and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting
principles used and significant estimates made by management, as well as evaluating the overall presentation of
the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an
understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and
testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our
audits also included performing such other procedures as we considered necessary in the circumstances. We
believe that our audits provide a reasonable basis for our opinions.
Definition and Limitations of Internal Control over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of financial statements for external purposes in
accordance with generally accepted accounting principles. A company’s internal control over financial reporting
includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail,
accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable
assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance
with generally accepted accounting principles, and that receipts and expenditures of the company are being made
only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable
assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s
assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.
Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may
become inadequate because of changes in conditions, or that the degree of compliance with the policies or
procedures may deteriorate.
CON EDISON ANNUAL REPORT 2022
99
Critical Audit Matters
The critical audit matter communicated below is a matter arising from the current period audit of the consolidated
financial statements that was communicated or required to be communicated to the audit committee and that (i)
relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our
especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter
in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by
communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the
accounts or disclosures to which it relates.
Accounting for the Effects of Regulatory Matters
As described in Notes A and B to the consolidated financial statements, the Company applies the accounting rules
for regulated operations, which specifies the economic effects that result from the causal relationship of costs and
revenues in the rate-regulated environment and how these effects are to be accounted for by a regulated enterprise.
As of December 31, 2022, there were $4,279 million of deferred costs included in regulatory assets and $6,401
million of regulatory liabilities awaiting potential refund or future rate reductions. Under regulatory accounting rules,
if it is probable that incurred costs will be recovered in the future, those costs would be recorded as deferred
charges or “regulatory assets.” Similarly, if revenues are recorded for costs expected to be incurred in the future,
these revenues would be recorded as deferred credits or “regulatory liabilities.” The Company’s regulatory assets
and liabilities will be recovered from customers, or applied for customer benefit, in accordance with rate provisions
approved by the applicable state regulators.
The principal considerations for our determination that performing procedures relating to the accounting for the
effects of regulatory matters is a critical audit matter are the significant judgment by management in determining the
recoverability of certain regulatory assets and the significant auditor judgment and subjectivity in performing
procedures and evaluating audit evidence relating to the recognition of regulatory assets and regulatory liabilities,
including evaluating management’s judgments relating to the recoverability of certain regulatory assets.
Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our
overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of
controls relating to management’s assessment of regulatory proceedings and the implementation of new regulatory
orders or changes to existing regulatory balances. These procedures also included, among others, evaluating the
reasonableness of management’s assessment of impacts arising from correspondence with regulators and changes
in laws and regulations; evaluating management’s judgments related to the recoverability of regulatory assets and
the establishment of regulatory liabilities; and recalculating regulatory assets and liabilities based on provisions and
formulas outlined in rate orders and other correspondence with regulators.
/s/ PricewaterhouseCoopers LLP
New York, New York
February 16, 2023
We have served as the Company’s or its predecessors' auditor since 1938.
100
CON EDISON ANNUAL REPORT 2022
Consolidated Edison, Inc.
Consolidated Income Statement
(Millions of Dollars/Except Share Data)
OPERATING REVENUES
Electric
Gas
Steam
Non-utility
TOTAL OPERATING REVENUES
OPERATING EXPENSES
Purchased power
Fuel
Gas purchased for resale
Other operations and maintenance
Depreciation and amortization
Taxes, other than income taxes
TOTAL OPERATING EXPENSES
OPERATING INCOME
OTHER INCOME (DEDUCTIONS)
Investment income (loss)
Other income
Allowance for equity funds used during construction
Other deductions
TOTAL OTHER INCOME (DEDUCTIONS)
INCOME BEFORE INTEREST AND INCOME TAX EXPENSE
INTEREST EXPENSE
Interest on long-term debt
Other interest
Allowance for borrowed funds used during construction
NET INTEREST EXPENSE
INCOME BEFORE INCOME TAX EXPENSE
INCOME TAX EXPENSE
NET INCOME
(Loss) Income attributable to non-controlling interest
NET INCOME FOR COMMON STOCK
Net income per common share — basic
Net income per common share — diluted
AVERAGE NUMBER OF SHARES OUTSTANDING — BASIC (IN MILLIONS)
AVERAGE NUMBER OF SHARES OUTSTANDING — DILUTED (IN MILLIONS)
For the Years Ended December 31,
2022
2021
2020
$10,522
3,237
593
1,318
15,670
2,479
356
1,245
3,905
2,056
3,005
13,046
2,624
20
402
19
(115)
326
2,950
987
(99)
(36)
852
2,098
498
$1,600
$(60)
$1,660
$4.68
$4.66
354.5
355.8
$9,485
2,638
532
1,021
13,676
1,835
229
690
3,254
2,032
2,810
10,850
2,826
(420)
22
21
(161)
(538)
2,288
930
(14)
(11)
905
1,383
190
$1,193
$(153)
$1,346
$3.86
$3.85
348.4
349.4
$8,730
2,269
508
739
12,246
1,600
156
527
2,814
1,920
2,575
9,592
2,654
(214)
23
17
(227)
(401)
2,253
915
118
(14)
1,019
1,234
90
$1,144
$43
$1,101
$3.29
$3.28
334.8
335.7
The accompanying notes are an integral part of these financial statements.
CON EDISON ANNUAL REPORT 2022
101
Consolidated Edison, Inc.
Consolidated Statement of Comprehensive Income
(Millions of Dollars)
NET INCOME
LOSS (INCOME) ATTRIBUTABLE TO NON-CONTROLLING INTEREST
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAXES
Pension and other postretirement benefit plan liability adjustments, net of taxes
Other income, net of taxes
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAXES
COMPREHENSIVE INCOME
For the Years Ended December 31,
2022
$1,600
60
16
1
17
2021
$1,193
153
30
—
30
2020
$1,144
(43)
(6)
—
(6)
$1,677
$1,376
$1,095
The accompanying notes are an integral part of these financial statements.
102
CON EDISON ANNUAL REPORT 2022
Consolidated Edison, Inc.
Consolidated Statement of Cash Flows
(Millions of Dollars)
OPERATING ACTIVITIES
Net Income
PRINCIPAL NON-CASH CHARGES/(CREDITS) TO INCOME
Depreciation and amortization
Impairment of assets
Deferred income taxes
Net derivative (gains)/losses
Other non-cash items, net
CHANGES IN ASSETS AND LIABILITIES
Accounts receivable - customers
Unbilled revenue and net unbilled revenue deferrals
Allowance for uncollectible accounts – customers
Materials and supplies, including fuel oil and gas in storage
Prepayments, other receivables and other current assets
Accounts payable
Pensions and retiree benefits obligations, net
Pensions and retiree benefits contributions
Accrued taxes
Distributions from equity investments
System benefit charge
Deferred charges, noncurrent assets, leases, net and other regulatory assets
Deferred credits, noncurrent liabilities and other regulatory liabilities
Other current liabilities
NET CASH FLOWS FROM OPERATING ACTIVITIES
INVESTING ACTIVITIES
Utility construction expenditures
Cost of removal less salvage
Non-utility construction expenditures
Investments in electric and gas transmission projects
Investments in/acquisitions of renewable electric projects
Proceeds from sale of assets
Divestiture of renewable electric projects
Other investing activities
NET CASH FLOWS USED IN INVESTING ACTIVITIES
FINANCING ACTIVITIES
Net (payment)/issuance of short-term debt
Issuance of long-term debt
Retirement of long-term debt
Debt issuance costs
Common stock dividends
Issuance of common shares - public offering
Issuance of common shares for stock plans
Distribution to noncontrolling interest
Sale of equity interest
NET CASH FLOWS FROM FINANCING ACTIVITIES
CASH, TEMPORARY CASH INVESTMENTS AND RESTRICTED CASH:
NET CHANGE FOR THE PERIOD
BALANCE AT BEGINNING OF PERIOD
BALANCE AT END OF PERIOD
LESS: CHANGE IN CASH BALANCES HELD FOR SALE
BALANCE AT END OF PERIOD EXCLUDING HELD FOR SALE
SUPPLEMENTAL DISCLOSURE OF CASH INFORMATION
Cash paid/(received) during the period for:
Interest
Income taxes
SUPPLEMENTAL DISCLOSURE OF NON-CASH INFORMATION
Construction expenditures in accounts payable
Issuance of common shares for dividend reinvestment
Software licenses acquired but unpaid as of end of period
Equipment acquired but unpaid as of end of period
For the Years Ended December 31
2020
2021
2022
$1,600
$1,193
$1,144
2,056
—
435
(181)
163
(285)
(96)
5
(111)
31
558
176
(39)
7
20
(41)
(870)
423
84
3,935
(3,824)
(337)
(344)
(64)
—
—
—
4
(4,565)
1,702
800
(406)
(13)
(1,089)
—
57
(37)
—
1,014
384
1,146
$1,530
2,032
443
133
(53)
111
(411)
(53)
169
(82)
(234)
44
266
(472)
(46)
18
(34)
(496)
248
(43)
2,733
(3,630)
(323)
(323)
(30)
—
629
183
10
(3,484)
(382)
2,804
(1,960)
(40)
(1,030)
775
60
(23)
257
461
(290)
1,436
$1,146
248
—
$1,282
$1,146
$900
$47
$681
$31
$2
$17
$924
$9
$457
$49
$23
$22
1,920
320
85
57
(8)
(543)
(1)
78
(4)
(179)
170
285
(478)
74
39
(119)
(686)
(58)
102
2,198
(3,326)
(310)
(583)
(3)
(24)
—
—
22
(4,224)
178
2,925
(518)
(47)
(975)
640
58
(16)
—
2,245
219
1,217
$1,436
—
$1,436
$920
$38
$478
$48
$51
$28
The accompanying notes are an integral part of these financial statements.
CON EDISON ANNUAL REPORT 2022
103
Consolidated Edison, Inc.
Consolidated Balance Sheet
(Millions of Dollars)
ASSETS
CURRENT ASSETS
Cash and temporary cash investments
Accounts receivable — customers, net allowance for uncollectible accounts of $322 and $317 in 2022
and 2021, respectively
Other receivables, net allowance for uncollectible accounts of $10 and $22 in 2022 and 2021,
respectively
Taxes receivable
Accrued unbilled revenue
Fuel oil, gas in storage, materials and supplies, at average cost
Prepayments
Regulatory assets
Restricted cash
Revenue decoupling mechanism receivable
Fair value of derivative assets
Assets held for sale
Other current assets
TOTAL CURRENT ASSETS
INVESTMENTS
UTILITY PLANT, AT ORIGINAL COST
Electric
Gas
Steam
General
TOTAL
Less: Accumulated depreciation
Net
Construction work in progress
NET UTILITY PLANT
NON-UTILITY PLANT
Non-utility property, net accumulated depreciation of $23 and $626 in 2022 and 2021, respectively
Construction work in progress
NET PLANT
OTHER NONCURRENT ASSETS
Goodwill
Intangible assets, net accumulated amortization of $297 in 2021
Operating lease right-of-use-asset
Regulatory assets
Pension and Retiree Benefits
Fair value of derivative assets
Other deferred charges and noncurrent assets
TOTAL OTHER NONCURRENT ASSETS
TOTAL ASSETS
The accompanying notes are an integral part of these financial statements.
104
CON EDISON ANNUAL REPORT 2022
December 31,
2022
December 31,
2021
$1,282
2,192
164
10
702
492
264
305
—
164
59
7,162
176
12,972
841
36,819
13,378
2,935
4,205
57,337
13,069
44,268
2,484
46,752
13
1
46,766
408
—
568
3,974
3,269
85
182
$992
1,943
298
13
662
437
295
206
154
190
128
—
233
5,551
853
34,938
12,303
2,828
4,170
54,239
12,177
42,062
2,152
44,214
4,194
188
48,596
439
1,293
809
3,639
1,654
77
205
8,486
$69,065
8,116
$63,116
Consolidated Edison, Inc.
Consolidated Balance Sheet
(Millions of Dollars)
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Long-term debt due within one year
Term Loan
Notes payable
Accounts payable
Customer deposits
Accrued taxes
Accrued interest
Accrued wages
Fair value of derivative liabilities
Regulatory liabilities
System benefit charge
Operating lease liabilities
Liabilities held for sale
Other current liabilities
TOTAL CURRENT LIABILITIES
NONCURRENT LIABILITIES
Provision for injuries and damages
Pensions and retiree benefits
Superfund and other environmental costs
Asset retirement obligations
Fair value of derivative liabilities
Deferred income taxes and unamortized investment tax credits
Operating lease liabilities
Regulatory liabilities
Other deferred credits and noncurrent liabilities
TOTAL NONCURRENT LIABILITIES
LONG-TERM DEBT
COMMITMENTS, CONTINGENCIES, AND GUARANTEES (Note B, Note G, and Note H)
EQUITY
Common shareholders’ equity
Noncontrolling interest
TOTAL EQUITY (See Statement of Equity)
TOTAL LIABILITIES AND EQUITY
The accompanying notes are an integral part of these financial statements.
December 31,
2022
December 31,
2021
$649
400
2,640
1,955
358
102
153
116
42
374
390
103
3,610
444
11,336
181
577
997
500
13
7,641
476
6,027
281
16,693
20,147
$440
—
1,488
1,497
300
104
151
113
152
185
423
113
—
461
5,427
183
737
940
577
84
6,873
717
4,381
257
14,749
22,604
20,687
202
20,889
$69,065
20,037
299
20,336
$63,116
CON EDISON ANNUAL REPORT 2022
105
Consolidated Edison, Inc.
Consolidated Statement of Equity
(In Millions, except for
dividends per share)
BALANCE AS OF
DECEMBER 31, 2019
Net income
Common stock dividends
($3.06 per share)
Issuance of common
shares - public offering
Issuance of common
shares for stock plans
Other comprehensive
income
Distributions to
noncontrolling interests
BALANCE AS OF
DECEMBER 31, 2020
Net income (loss)
Common stock dividends
($3.10 per share)
Issuance of common
shares - public offering
Issuance of common
shares for stock plans
Other comprehensive
income
Distributions to
noncontrolling interests
Net proceeds from sale
of equity interest
BALANCE AS OF
DECEMBER 31, 2021
Net income (loss)
Common stock dividends
($3.16 per share)
Issuance of common
shares - public offering
Issuance of common
shares for stock plans
Other comprehensive
income
Distributions to
noncontrolling interests
BALANCE AS OF
DECEMBER 31, 2022
Common Stock
Shares Amount
Additional
Paid-In
Capital
Retained
Earnings
Treasury Stock
Shares Amount
Capital
Stock
Expense
Accumulated
Other
Comprehensive
Income/(Loss)
Noncontrolling
Interest
Total
333
$35
$8,054
$11,100
23 $(1,038)
$(110)
$(19)
$191 $18,213
1,101
(1,023)
9
1
641
113
(2)
43
1,144
(1,023)
640
113
(6)
(16)
(6)
(16)
342
$36
$8,808
$11,178
23 $(1,038)
$(112)
$(25)
$218 $19,065
1,346
(1,079)
1
10
2
775
127
(10)
30
(153)
1,193
(1,079)
766
127
30
(23)
(23)
257
257
354
$37
$9,710
$11,445
23 $(1,038)
$(122)
$5
$299 $20,336
1,660
(1,120)
1
93
(60)
1,600
(1,120)
—
93
17
(37)
(37)
17
355
$37
$9,803
$11,985
23 $(1,038)
$(122)
$22
$202 $20,889
The accompanying notes are an integral part of these financial statements.
106
CON EDISON ANNUAL REPORT 2022
Consolidated Edison, Inc.
Consolidated Statement of Capitalization
(In Millions)
TOTAL EQUITY BEFORE ACCUMULATED OTHER
COMPREHENSIVE INCOME (LOSS)
Pension plan liability adjustments, net of taxes
Unrealized gains/(losses) on derivatives qualified as cash flow
hedges, less reclassification adjustment for gains/(losses)
included in net income and reclassification adjustment for
unrealized losses included in regulatory assets, net of taxes
TOTAL ACCUMULATED OTHER COMPREHENSIVE INCOME
(LOSS), NET OF TAXES
Equity
Noncontrolling interest
TOTAL EQUITY (See Statement of Equity)
Shares outstanding
December 31,
2022
355
2021
354
At December 31,
2022
2021
$20,665
$20,032
23
(1)
22
7
(2)
5
20,687
202
$20,889
20,037
299
$20,336
The accompanying notes are an integral part of these financial statements.
CON EDISON ANNUAL REPORT 2022
107
Consolidated Edison, Inc.
Consolidated Statement of Capitalization
LONG-TERM DEBT (Millions of Dollars)
Maturity
DEBENTURES:
2023
Interest Rate
0.65
2024
2026
2027
2027
2028
2028
2029
2030
2030
2031
2031
2032
2033
2033
2034
2035
2035
2036
2036
2036
2037
2038
2039
2039
2039
2040
2040
2042
2043
2044
2045
2045
2045
2046
2046
2047
2048
2048
2048
2049
2049
2050
2050
2051
2051
2052
2054
2056
2057
2058
3.30
2.90
6.50
3.125
3.80
4.00
2.94
3.35
2.02
2.40
2.31
5.70
5.875
5.10
5.70
5.30
5.25
5.85
6.20
5.70
6.30
6.75
6.00
5.50
3.46
5.70
5.50
4.20
3.95
4.45
4.50
4.95
4.69
3.85
3.88
3.875
4.65
4.35
4.35
4.125
3.73
3.95
3.24
3.17
3.20
6.15
4.63
4.30
4.00
4.50
108
CON EDISON ANNUAL REPORT 2022
Series
2020A
2014B
2016B
1997F
2017B
2018A
2018D
2019B
2020A
2020A
2021A
2021A
2022A
2003A
2003C
2004B
2005A
2005B
2006A
2006B
2006E
2007A
2008B
2009B
2009C
2019C
2010B
2010B
2012A
2013A
2014A
2015A
2015A
2015B
2016A
2016A
2017A
2018E
2018A
2018B
2019A
2019A
2020B
2020B
2021B
2021C
2022A
2014C
2016C
2017C
2018B
At December 31,
2022
$650
2021
$650
250
250
80
350
300
500
44
600
35
900
45
100
175
200
200
350
125
400
400
250
525
600
60
600
38
350
115
400
700
850
650
120
100
550
75
500
600
125
25
700
43
250
250
80
350
300
500
44
600
35
900
45
—
175
200
200
350
125
400
400
250
525
600
60
600
38
350
115
400
700
850
650
120
100
550
75
500
600
125
25
700
43
1,000
1,000
40
30
600
700
750
500
350
700
40
30
600
—
750
500
350
700
2059
2060
2061
TOTAL DEBENTURES
3.70
3.00
3.60
2019B
2020C
2021B
Consolidated Edison, Inc.
Consolidated Statement of Capitalization
LONG-TERM DEBT (Millions of Dollars)
Maturity
TAX-EXEMPT DEBT - Notes issued to New York State Energy
Research and Development Authority for Facilities Revenue Bonds:
Interest Rate
(a)
(a)
(a)
(b)
(b)
(b)
(b)
(b)
(c)
(c)
2036
2039
3.61
3.68
2039
3.63
TOTAL TAX-EXEMPT DEBT
PROJECT DEBT:
2023
2025
2026
2028
2028
2028
2031
2031-2038
2036
2036
2037
2038
2039
2040
2041
2042
2046
6.91
6.91
5.92
4.41
6.48
6.42
2.24 - 3.03
5.25 - 4.95
3.94
4.07
4.78
3.82
4.82
4.53
4.21
4.45
3.77
Other project debt
TOTAL PROJECT DEBT
Other long-term debt
Unamortized debt expense
Unamortized debt discount
TOTAL
Less: Long-term debt due within one year
TOTAL LONG-TERM DEBT
Less: Held for sale project debt, net
TOTAL LONG-TERM DEBT EXCLUDING
HELD FOR SALE
TOTAL CAPITALIZATION
600
600
750
20,550
600
600
750
19,750
Series
2010A
2004C
2005A
Copper Mountain Solar 2
Copper Mountain Solar 3
CED Southwest
Wind Holdings
Copper Mountain Solar 1
CED California Texas
Mesquite Solar 1
Texas Solar 4
California Solar 2
California Solar 3
California Solar
California Solar 4
Broken Bow II
Texas Solar 5
Texas Solar 7
Upton County Solar
CED Nevada Virginia
At December 31,
2022
2021
225
99
126
450
179
229
408
87
41
236
149
49
86
77
168
265
64
132
180
81
228
6
2,665
(1)
(172)
(51)
23,441
1,002
22,439
2,292
20,147
$40,834
225
99
126
450
192
247
418
95
49
248
165
52
88
79
171
271
65
135
184
83
228
7
2,777
293
(177)
(49)
23,044
440
22,604
—
22,604
$42,641
(a) Rates reset weekly; December 31, 2022 rates shown.
(b) December 31, 2022 effective rates shown, reflecting variable interest rates on the debt that are reset quarterly or semi-annually. Refer to Note Q for the effect of applicable interest rate
swaps.
(c) Range of rates shown reflect multiple tranches associated with the debt.
The accompanying notes are an integral part of these financial statements.
CON EDISON ANNUAL REPORT 2022
109
Report of Management on Internal Control Over Financial Reporting
Management of Consolidated Edison Company of New York, Inc. and its subsidiaries (the Company) is responsible
for establishing and maintaining adequate internal control over financial reporting. Internal control over financial
reporting is a process designed to provide reasonable, but not absolute, assurance regarding the reliability of
financial reporting and the preparation of financial statements for external purposes in accordance with accounting
principles generally accepted in the United States of America.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.
Also, projections of the effectiveness of controls to future periods are subject to the risk that controls may become
inadequate because of changes in conditions, or that the degree of compliance with policies or procedures may
deteriorate.
Management of the Company assessed the effectiveness of internal control over financial reporting as of
December 31, 2022, using the criteria established by the Committee of Sponsoring Organizations of the Treadway
Commission (COSO) in Internal Control – Integrated Framework (2013). Based on that assessment, management
has concluded that the Company had effective internal control over financial reporting as of December 31, 2022.
The effectiveness of the Company’s internal control over financial reporting as of December 31, 2022, has been
audited by PricewaterhouseCoopers LLP, the Company’s independent registered public accounting firm, as stated
in their report which appears on the following page of this Annual Report on Form 10-K.
/s/ Timothy P. Cawley
Timothy P. Cawley
Chairman and Chief Executive Officer
/s/ Robert Hoglund
Robert Hoglund
Senior Vice President and Chief Financial Officer
February 16, 2023
110
CON EDISON ANNUAL REPORT 2022
Report of Independent Registered Public Accounting Firm
To the Board of Trustees and Shareholder of Consolidated Edison Company of New York, Inc.:
Opinions on the Financial Statements and Internal Control over Financial Reporting
We have audited the consolidated financial statements, including the related notes and financial statement
schedule, of Consolidated Edison Company of New York, Inc. and its subsidiaries (the “Company”) as listed in the
index appearing under Item 8 (collectively referred to as the “consolidated financial statements”). We also have
audited the Company's internal control over financial reporting as of December 31, 2022, based on criteria
established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations
of the Treadway Commission (COSO).
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the
financial position of the Company as of December 31, 2022 and 2021, and the results of its operations and its cash
flows for each of the three years in the period ended December 31, 2022 in conformity with accounting principles
generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material
respects, effective internal control over financial reporting as of December 31, 2022, based on criteria established in
Internal Control - Integrated Framework (2013) issued by the COSO.
Basis for Opinions
The Company's management is responsible for these consolidated financial statements, for maintaining effective
internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial
reporting, included in the accompanying Report of Management on Internal Control Over Financial Reporting. Our
responsibility is to express opinions on the Company’s consolidated financial statements and on the Company's
internal control over financial reporting based on our audits. We are a public accounting firm registered with the
Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with
respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations
of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan
and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free
of material misstatement, whether due to error or fraud, and whether effective internal control over financial
reporting was maintained in all material respects.
Our audits of the consolidated financial statements included performing procedures to assess the risks of material
misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures
that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts
and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting
principles used and significant estimates made by management, as well as evaluating the overall presentation of
the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an
understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and
testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our
audits also included performing such other procedures as we considered necessary in the circumstances. We
believe that our audits provide a reasonable basis for our opinions.
Definition and Limitations of Internal Control over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance
regarding the reliability of financial reporting and the preparation of financial statements for external purposes in
accordance with generally accepted accounting principles. A company’s internal control over financial reporting
includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail,
accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable
assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance
with generally accepted accounting principles, and that receipts and expenditures of the company are being made
only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable
assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s
assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.
Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may
become inadequate because of changes in conditions, or that the degree of compliance with the policies or
procedures may deteriorate.
CON EDISON ANNUAL REPORT 2022
111
Critical Audit Matters
The critical audit matter communicated below is a matter arising from the current period audit of the consolidated
financial statements that was communicated or required to be communicated to the audit committee and that (i)
relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our
especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter
in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by
communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the
accounts or disclosures to which it relates.
Accounting for the Effects of Regulatory Matters
As described in Notes A and B to the consolidated financial statements, the Company applies the accounting rules
for regulated operations, which specifies the economic effects that result from the causal relationship of costs and
revenues in the rate-regulated environment and how these effects are to be accounted for by a regulated enterprise.
As of December 31, 2022, there were $3,955 million of deferred costs included in regulatory assets and $5,789
million of regulatory liabilities awaiting potential refund or future rate reductions. Under regulatory accounting rules,
if it is probable that incurred costs will be recovered in the future, those costs would be recorded as deferred
charges or “regulatory assets.” Similarly, if revenues are recorded for costs expected to be incurred in the future,
these revenues would be recorded as deferred credits or “regulatory liabilities.” The Company’s regulatory assets
and liabilities will be recovered from customers, or applied for customer benefit, in accordance with rate provisions
approved by the applicable state regulators
The principal considerations for our determination that performing procedures relating to the accounting for the
effects of regulatory matters is a critical audit matter are the significant judgment by management in determining the
recoverability of certain regulatory assets and the significant auditor judgment and subjectivity in performing
procedures and evaluating audit evidence relating to the recognition of regulatory assets and regulatory liabilities,
including evaluating management’s judgments relating to the recoverability of certain regulatory assets.
Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our
overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of
controls relating to management’s assessment of regulatory proceedings and the implementation of new regulatory
orders or changes to existing regulatory balances. These procedures also included, among others, evaluating the
reasonableness of management’s assessment of impacts arising from correspondence with regulators and changes
in laws and regulations; evaluating management’s judgments related to the recoverability of regulatory assets and
the establishment of regulatory liabilities; and recalculating regulatory assets and liabilities based on provisions and
formulas outlined in rate orders and other correspondence with regulators.
/s/ PricewaterhouseCoopers LLP
New York, New York
February 16, 2023
We have served as the Company’s auditor since 1938.
112
CON EDISON ANNUAL REPORT 2022
Consolidated Edison Company of New York, Inc.
Consolidated Income Statement
(Millions of Dollars)
OPERATING REVENUES
Electric
Gas
Steam
TOTAL OPERATING REVENUES
OPERATING EXPENSES
Purchased power
Fuel
Gas purchased for resale
Other operations and maintenance
Depreciation and amortization
Taxes, other than income taxes
TOTAL OPERATING EXPENSES
OPERATING INCOME
OTHER INCOME (DEDUCTIONS)
Investment and other income
Allowance for equity funds used during construction
Other deductions
TOTAL OTHER INCOME (DEDUCTIONS)
INCOME BEFORE INTEREST AND INCOME TAX EXPENSE
INTEREST EXPENSE
Interest on long-term debt
Other interest
Allowance for borrowed funds used during construction
NET INTEREST EXPENSE
INCOME BEFORE INCOME TAX EXPENSE
INCOME TAX EXPENSE
NET INCOME
For the Years Ended December 31,
2022
2021
2020
$9,751
2,924
593
13,268
2,201
356
869
3,042
1,778
2,887
11,133
2,135
376
18
(62)
332
2,467
808
47
(33)
822
1,645
255
$1,390
$8,806
2,378
532
11,716
1,633
229
541
2,452
1,705
2,696
9,256
2,460
16
19
(143)
(108)
2,352
759
13
(10)
762
1,590
246
$1,344
$8,103
2,036
508
10,647
1,432
156
426
2,269
1,598
2,456
8,337
2,310
19
14
(204)
(171)
2,139
718
33
(12)
739
1,400
215
$1,185
The accompanying notes are an integral part of these financial statements.
CON EDISON ANNUAL REPORT 2022
113
Consolidated Edison Company of New York, Inc.
Consolidated Statement of Comprehensive Income
(Millions of Dollars)
NET INCOME
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAXES
Pension and other postretirement benefit plan liability adjustments, net of taxes
Other income, net of taxes
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAXES
COMPREHENSIVE INCOME
For the Years Ended December 31,
2022
$1,390
2021
$1,344
2020
$1,185
3
1
4
7
—
7
(1)
—
(1)
$1,394
$1,351
$1,184
The accompanying notes are an integral part of these financial statements.
114
CON EDISON ANNUAL REPORT 2022
Consolidated Edison Company of New York, Inc.
Consolidated Statement of Cash Flows
(Millions of Dollars)
OPERATING ACTIVITIES
Net income
PRINCIPAL NON-CASH CHARGES/(CREDITS) TO INCOME
Depreciation and amortization
Deferred income taxes
Other non-cash items, net
CHANGES IN ASSETS AND LIABILITIES
Accounts receivable - customers
Allowance for uncollectible accounts - customers
Prepayments, other receivables and other current assets
Accounts receivables from affiliated companies
Accounts payable
Accounts payable to affiliated companies
Pensions and retiree benefits obligations, net
Pensions and retiree benefits contributions
Accrued taxes
Accrued taxes to affiliated companies
System benefit charge
Deferred charges, noncurrent assets, leases, net and other regulatory assets
Deferred credits, noncurrent liabilities and other regulatory liabilities
Other current liabilities
NET CASH FLOWS FROM OPERATING ACTIVITIES
INVESTING ACTIVITIES
Utility construction expenditures
Cost of removal less salvage
NET CASH FLOWS USED IN INVESTING ACTIVITIES
FINANCING ACTIVITIES
Net (payment)/issuance of short-term debt
Issuance of long-term debt
Retirement of long-term debt
Debt issuance costs
Capital contribution by parent
Dividend to parent
NET CASH FLOWS FROM FINANCING ACTIVITIES
CASH, TEMPORARY CASH INVESTMENTS AND RESTRICTED CASH:
NET CHANGE FOR THE PERIOD
BALANCE AT BEGINNING OF PERIOD
BALANCE AT END OF PERIOD
SUPPLEMENTAL DISCLOSURE OF CASH INFORMATION
Cash paid during the period for:
Interest
Income taxes
SUPPLEMENTAL DISCLOSURE OF NON-CASH INFORMATION
Construction expenditures in accounts payable
Software licenses acquired but unpaid as of end of period
Equipment acquired but unpaid as of end of period
The accompanying notes are an integral part of these financial statements.
For the Years Ended December 31,
2022
2021
2020
$1,390
$1,344
$1,185
1,778
85
175
(268)
10
56
(8)
322
(1)
182
(26)
15
79
(33)
(852)
312
47
3,263
(3,596)
(330)
(3,926)
939
700
—
(12)
150
(978)
799
136
920
$1,056
$755
$87
$561
$2
$17
1,705
124
(2)
(412)
166
(354)
96
65
(4)
283
(433)
(54)
9
(32)
(484)
192
(23)
2,186
(3,413)
(316)
(3,729)
(299)
2,250
(640)
(27)
1,100
(988)
1,396
(147)
1,067
$920
$739
$5
$406
$22
$22
1,598
168
(62)
(516)
74
(98)
(61)
145
9
253
(438)
61
1
(112)
(633)
15
104
1,693
(3,112)
(304)
(3,416)
523
2,200
(350)
(34)
500
(982)
1,857
134
933
$1,067
$693
$102
$417
$48
$28
CON EDISON ANNUAL REPORT 2022
115
Consolidated Edison Company of New York, Inc.
Consolidated Balance Sheet
(Millions of Dollars)
ASSETS
CURRENT ASSETS
Cash and temporary cash investments
Accounts receivable – customers, net allowance for uncollectible accounts of $314 and $304 in 2022
and 2021, respectively
Other receivables, net allowance for uncollectible accounts of $7 and $19 in 2022 and 2021,
respectively
Taxes receivable
Accrued unbilled revenue
Accounts receivable from affiliated companies
Fuel oil, gas in storage, materials and supplies, at average cost
Prepayments
Regulatory assets
Revenue decoupling mechanism receivable
Fair value of derivative assets
Other current assets
TOTAL CURRENT ASSETS
INVESTMENTS
UTILITY PLANT AT ORIGINAL COST
Electric
Gas
Steam
General
TOTAL
Less: Accumulated depreciation
Net
Construction work in progress
NET UTILITY PLANT
NON-UTILITY PROPERTY
Non-utility property, net accumulated depreciation of $25 in 2022 and 2021
NET PLANT
OTHER NONCURRENT ASSETS
Regulatory assets
Operating lease right-of-use asset
Pension and Retiree Benefits
Fair value of derivative assets
Other deferred charges and noncurrent assets
TOTAL OTHER NONCURRENT ASSETS
TOTAL ASSETS
The accompanying notes are an integral part of these financial statements.
December 31,
2022
December 31,
2021
$1,056
2,099
147
5
573
46
440
223
286
164
51
157
5,247
539
34,636
12,338
2,935
3,879
53,788
12,047
41,741
2,268
44,009
2
44,011
3,669
567
3,184
80
148
7,648
$57,445
$920
1,841
121
5
549
38
369
212
188
191
71
198
4,703
608
32,846
11,321
2,828
3,854
50,849
11,223
39,626
1,985
41,611
2
41,613
3,316
545
1,677
56
137
5,731
$52,655
116
CON EDISON ANNUAL REPORT 2022
Consolidated Edison Company of New York, Inc.
Consolidated Balance Sheet
(Millions of Dollars)
LIABILITIES AND SHAREHOLDER’S EQUITY
CURRENT LIABILITIES
Notes payable
Accounts payable
Accounts payable to affiliated companies
Customer deposits
Accrued taxes
Accrued taxes to affiliated companies
Accrued interest
Accrued wages
Fair value of derivative liabilities
Regulatory liabilities
System benefit charge
Operating lease liabilities
Other current liabilities
TOTAL CURRENT LIABILITIES
NONCURRENT LIABILITIES
Provision for injuries and damages
Pensions and retiree benefits
Superfund and other environmental costs
Asset retirement obligations
Fair value of derivative liabilities
Deferred income taxes and unamortized investment tax credits
Operating lease liabilities
Regulatory liabilities
Other deferred credits and noncurrent liabilities
TOTAL NONCURRENT LIABILITIES
LONG-TERM DEBT
December 31,
2022
December 31,
2021
$2,300
1,763
$1,361
1,285
17
341
93
89
134
105
35
308
351
103
397
18
285
78
10
127
103
88
134
372
90
370
6,036
4,321
177
526
903
499
9
7,144
475
5,481
237
15,451
19,080
178
669
850
504
40
6,796
462
3,921
220
13,640
18,382
COMMITMENTS AND CONTINGENCIES (Note B and Note G)
COMMON SHAREHOLDER’S EQUITY (See Statement of Shareholder’s Equity)
TOTAL LIABILITIES AND SHAREHOLDER’S EQUITY
16,878
$57,445
16,312
$52,655
The accompanying notes are an integral part of these financial statements.
CON EDISON ANNUAL REPORT 2022
117
Consolidated Edison Company of New York, Inc.
Consolidated Statement of Shareholder’s Equity
(In Millions)
Common Stock
Shares Amount
Additional
Paid-In
Capital
Retained
Earnings
Repurchased
Con Edison
Stock
Capital
Stock
Expense
Accumulated
Other
Comprehensive
Income/(Loss)
Total
BALANCE AS OF DECEMBER 31, 2019
235
$589
$5,669
$8,919
$(962)
$(62)
$(6) $14,147
Net income
Common stock dividend to parent
Capital contribution by parent
Other comprehensive income
1,185
(982)
500
1,185
(982)
500
(1)
(1)
BALANCE AS OF DECEMBER 31, 2020
235
$589
$6,169
$9,122
$(962)
$(62)
$(7) $14,849
Net income
Common stock dividend to parent
Capital contribution by parent
Other comprehensive income
1,344
(988)
1,100
1,344
(988)
1,100
7
7
BALANCE AS OF DECEMBER 31, 2021
235
$589
$7,269
$9,478
$(962)
$(62)
$— $16,312
Net income
Common stock dividend to parent
Capital contribution by parent
Other comprehensive income
1,390
(978)
150
1,390
(978)
150
4
4
BALANCE AS OF DECEMBER 31, 2022
235
$589
$7,419
$9,890
$(962)
$(62)
$4 $16,878
The accompanying notes are an integral part of these financial statements.
118
CON EDISON ANNUAL REPORT 2022
Consolidated Edison Company of New York, Inc.
Consolidated Statement of Capitalization
(In Millions)
TOTAL SHAREHOLDER’S EQUITY BEFORE ACCUMULATED
OTHER COMPREHENSIVE INCOME (LOSS)
Pension plan liability adjustments, net of taxes
Unrealized gains/(losses) on derivatives qualified as cash flow
hedges, less reclassification adjustment for gains/(losses)
included in net income and reclassification adjustment for
unrealized losses included in regulatory assets, net of taxes
TOTAL ACCUMULATED OTHER COMPREHENSIVE INCOME
(LOSS), NET OF TAXES
TOTAL SHAREHOLDER’S EQUITY (See Statement of
Shareholder’s Equity)
Shares outstanding
December 31,
2022
235
2021
235
At December 31,
2022
2021
$16,874
$16,312
5
(1)
4
1
(1)
—
$16,878
$16,312
The accompanying notes are an integral part of these financial statements.
CON EDISON ANNUAL REPORT 2022
119
Consolidated Edison Company of New York, Inc.
Consolidated Statement of Capitalization
LONG-TERM DEBT (Millions of Dollars)
Maturity
DEBENTURES:
Interest Rate
2024
2026
2027
2028
2028
2030
2031
2033
2033
2034
2035
2035
2036
2036
2036
2037
2038
2039
2040
2042
2043
2044
2045
2046
2047
2048
2049
2050
2051
2052
2054
2056
2057
2058
2059
2060
3.30
2.90
3.125
3.80
4.00
3.35
2.40
5.875
5.10
5.70
5.30
5.25
5.85
6.20
5.70
6.30
6.75
5.50
5.70
4.20
3.95
4.45
4.50
3.85
3.875
4.65
4.125
3.95
3.20
6.15
4.625
4.30
4.00
4.50
3.70
3.00
2061
3.60
TOTAL DEBENTURES
TAX-EXEMPT DEBT – Notes issued to New York State Energy
Research and Development Authority for Facilities Revenue Bonds:
2036
(a)
3.61
2039
2039
3.68
3.63
(a)
(a)
TOTAL TAX-EXEMPT DEBT
Unamortized debt expense
Unamortized debt discount
TOTAL LONG-TERM DEBT
TOTAL CAPITALIZATION
(a) Rates reset weekly; December 31, 2022 rates shown.
Series
2014B
2016B
2017B
2018A
2018D
2020A
2021A
2003A
2003C
2004B
2005A
2005B
2006A
2006B
2006E
2007A
2008B
2009C
2010B
2012A
2013A
2014A
2015A
2016A
2017A
2018E
2019A
2020B
2021C
2022A
2014C
2016C
2017C
2018B
2019B
2020C
2021B
2010A
2004C
2005A
At December 31,
2022
$250
250
350
300
500
600
900
175
200
200
350
125
400
400
250
525
600
600
350
400
700
850
650
550
500
600
700
2021
$250
250
350
300
500
600
900
175
200
200
350
125
400
400
250
525
600
600
350
400
700
850
650
550
500
600
700
1,000
1,000
600
700
750
500
350
700
600
600
600
—
750
500
350
700
600
600
750
18,825
750
18,125
225
99
126
450
(145)
(50)
225
99
126
450
(145)
(48)
19,080
$35,958
18,382
$34,694
The accompanying notes are an integral part of these financial statements.
120
CON EDISON ANNUAL REPORT 2022
Notes to the Financial Statements
General
These combined notes accompany and form an integral part of the separate consolidated financial statements of
each of the two separate registrants: Consolidated Edison, Inc. and its subsidiaries (Con Edison) and Consolidated
Edison Company of New York, Inc. and its subsidiaries (CECONY). CECONY is a subsidiary of Con Edison and as
such its financial condition and results of operations and cash flows, which are presented separately in the
CECONY consolidated financial statements, are also consolidated, along with those of Orange and Rockland
Utilities, Inc. (O&R), Con Edison Clean Energy Businesses, Inc. (together with its subsidiaries, the Clean Energy
Businesses) and Con Edison Transmission, Inc. (together with its subsidiaries, Con Edison Transmission) in Con
Edison’s consolidated financial statements. The term “Utilities” is used in these notes to refer to CECONY and O&R.
As used in these notes, the term “Companies” refers to Con Edison and CECONY and, except as otherwise noted,
the information in these combined notes relates to each of the Companies. However, CECONY makes no
representation as to information relating to Con Edison or the subsidiaries of Con Edison other than itself.
Con Edison has two regulated utility subsidiaries: CECONY and O&R. CECONY provides electric service and gas
service in New York City and Westchester County. The company also provides steam service in parts of Manhattan.
O&R, along with its regulated utility subsidiary, provides electric service in southeastern New York, "NY" and
northern New Jersey, "NJ" and gas service in southeastern NY. The Clean Energy Businesses, through its
subsidiaries, develops, owns and operates renewable and sustainable energy infrastructure projects and provides
energy-related products and services to wholesale and retail customers. In October 2022, Con Edison entered into
a purchase and sale agreement pursuant to which Con Edison agreed to sell the Clean Energy Businesses to RWE
Renewables America, LLC, a subsidiary of RWE Aktiengesellschaft. The Clean Energy Businesses were classified
as held for sale as of December 31, 2022. See “Assets and Liabilities Held for Sale” in Note A and Note X. Con
Edison Transmission invests in and seeks to develop electric transmission projects through its subsidiary,
Consolidated Edison Transmission, LLC (CET), and manages, through joint ventures, investments in gas pipeline
and storage facilities through its subsidiary Con Edison Gas Pipeline and Storage, LLC (CET). See "Investments" in
Note A and Note W.
CON EDISON ANNUAL REPORT 2022
121
Note A – Summary of Significant Accounting Policies and Other Matters
Principles of Consolidation
The Companies’ consolidated financial statements include the accounts of their respective majority-owned
subsidiaries, and variable interest entities (see Note S), as required. All intercompany balances and intercompany
transactions have been eliminated.
Accounting Policies
The accounting policies of Con Edison and its subsidiaries conform to generally accepted accounting principles in
the United States of America (GAAP). For the Utilities, these accounting principles include the accounting rules for
regulated operations and the accounting requirements of the Federal Energy Regulatory Commission (FERC) and
the state regulators having jurisdiction.
The accounting rules for regulated operations specify the economic effects that result from the causal relationship of
costs and revenues in the rate-regulated environment and how these effects are to be accounted for by a regulated
enterprise. Revenues intended to cover some costs may be recorded either before or after the costs are incurred. If
regulation provides assurance that incurred costs will be recovered in the future, these costs would be recorded as
deferred charges or “regulatory assets” under the accounting rules for regulated operations. If revenues are
recorded for costs that are expected to be incurred in the future, these revenues would be recorded as deferred
credits or “regulatory liabilities” under the accounting rules for regulated operations.
The Utilities’ principal regulatory assets and liabilities are detailed in Note B. In general, the Utilities are receiving or
being credited with a return on their regulatory assets for which a cash outflow has been made, and are paying or
being charged with a return on their regulatory liabilities for which a cash inflow has been received. The Utilities’
regulatory assets and liabilities at December 31, 2022 are recoverable from customers, or to be applied for
customer benefit, in accordance with rate provisions that have been approved by state regulators.
Other significant accounting policies of the Companies are referenced below in this Note A and in the notes that
follow.
Revenues
CECONY’s electric and gas rate plans and O&R’s NY electric and gas rate plans each contain a revenue
decoupling mechanism, that covers all residential and most commercial customers, under which the company’s
actual energy delivery revenues are compared with the authorized delivery revenues and the difference accrued,
with interest, for refund to, or recovery from, customers, as applicable. See “Rate Plans” in Note B.
The NYSPSC requires utilities to record gross receipts tax revenues and expenses on a gross income statement
presentation basis (i.e., included in both revenue and expense). The recovery of these taxes is generally provided
for in the revenue requirement within each of the respective NYSPSC-approved rate plans. Total excise taxes
(inclusive of gross receipts taxes) recorded in operating revenues were as follows:
(Millions of Dollars)
Con Edison
CECONY
For the Years Ended December 31,
2022
$400
387
2021
$358
346
2020
$323
312
For information about the Companies' revenue recognition policies, see Note M.
Plant and Depreciation
Utility Plant
Utility plant is stated at original cost. The cost of repairs and maintenance is charged to expense and the cost of
betterments is capitalized. The capitalized cost of additions to utility plant includes indirect costs such as
engineering, supervision, payroll taxes, pensions, other benefits and an allowance for funds used during
construction (AFUDC). The original cost of property is charged to expense over the estimated useful lives of the
assets. Upon retirement, the original cost of property is charged to accumulated depreciation. See- Note T.
Rates used for AFUDC include the cost of borrowed funds and a reasonable rate of return on the Utilities’ own funds
when so used, determined in accordance with regulations of the FERC or the state public utility regulatory authority
122
CON EDISON ANNUAL REPORT 2022
having jurisdiction. The rate is compounded semiannually, and the amounts applicable to borrowed funds are
treated as a reduction of interest charges, while the amounts applicable to the Utilities’ own funds are credited to
other income (deductions). The AFUDC rates for CECONY were 5.2 percent, 4.5 percent and 5.2 percent for 2022,
2021 and 2020, respectively. The AFUDC rates for O&R were 5.0 percent, 4.8 percent and 5.3 percent for 2022,
2021 and 2020, respectively.
The Utilities generally compute annual charges for depreciation using the straight-line method for financial
statement purposes, with rates based on average service lives and net salvage factors. The average depreciation
rates for CECONY were 3.5 percent for 2022 and 3.5 percent for 2021 and 3.5 percent for 2020. The average
depreciation rates for O&R were 3.0 percent for 2022, 3.1 percent for 2021 and 3.2 percent for 2020.
The estimated lives for utility plant for CECONY range from 5 to 80 years for electric, 5 to 90 years for gas, 5 to 80
years for steam and 5 to 55 years for general plant. For O&R, the estimated lives for utility plant range from 5 to 75
years for electric and gas and 5 to 50 years for general plant.
At December 31, 2022 and 2021, the capitalized cost of the Companies’ utility plant, net of accumulated
depreciation, was as follows:
(Millions of Dollars)
Electric
Generation
Transmission
Distribution
General
Gas (a)
Steam
General
Held for future use
Construction work in progress
Net Utility Plant
(a) Primarily distribution.
Con Edison
CECONY
2022
2021
2022
2021
$534
4,223
23,345
113
11,326
1,962
2,648
117
2,484
$559
3,955
22,418
87
10,473
1,924
2,566
80
2,152
$534
3,916
22,130
113
10,567
1,962
2,410
109
2,268
$559
3,658
21,240
87
9,748
1,924
2,338
72
1,985
$46,752
$44,214
$44,009
$41,611
General utility plant of Con Edison and CECONY included $72 million and $69 million, respectively, at
December 31, 2022, and $79 million and $74 million, respectively, at December 31, 2021, related to a May 2018
acquisition of software licenses. The estimated aggregate annual amortization expense related to the software
licenses for Con Edison and CECONY is $7 million. The accumulated amortization for Con Edison and CECONY
was $31 million and $29 million, respectively, at December 31, 2022 and $24 million at December 31, 2021.
Under the Utilities’ rate plans, the aggregate annual depreciation allowance for the period ended December 31,
2022 was $1,907 million, including $1,808 million under CECONY’s electric, gas and steam rate plans that have
been approved by the NYSPSC.
Non–Utility Plant
Non-utility plant is stated at original cost. For Con Edison, non-utility plant consists primarily of the Clean Energy
Businesses’ renewable electric projects. Property, plant and equipment are stated at cost, less accumulated
depreciation and include capitalized interest during construction. Depreciation is computed under the straight-line
method over the useful lives of the assets. Solar power generating assets and wind power generating assets have
useful lives of 35 years and 30, respectively. The Clean Energy Businesses were classified as held for sale as of
December 31, 2022, and depreciation on their assets was not recorded for the three months ended December 31,
2022. See "Assets and Liabilities Held for Sale" below, and Note X.
For the Utilities, non-utility plant consists of land and conduit for telecommunication use. Depreciation on non-utility
plant, other than land, is computed using the straight-line method for financial statement purposes over their
estimated useful lives, which is 10 years.
CON EDISON ANNUAL REPORT 2022
123
Other Deferred Charges and Noncurrent Assets and Prepayments
Other deferred charges and noncurrent assets and prepayments, net of accumulated depreciation, included the
following related to implementation costs incurred in cloud computing arrangements:
(Millions of Dollars)
Prepayments (a)(b)
Other Deferred Charges and Noncurrent Assets (a)(b)
Con Edison
CECONY
2022
$24
105
2021
$16
81
2022
$23
103
2021
$15
78
(a) Depreciation on these assets is computed using the straight-line method for financial statement purposes over their estimated useful lives.
(b) Depreciation expense related to these assets incurred during the year ended December 31, 2022 for Con Edison and CECONY was $15
million and $14 million, respectively, and for the year ended December 31, 2021 for Con Edison and CECONY was $12 million and $11 million ,
respectively. Accumulated depreciation related to these assets for Con Edison and CECONY was $37 million and $33 million, respectively at
December 31, 2022 and was $22 million and $19 million, respectively at December 31, 2021.
Long–Lived and Intangible Assets
The Companies test long-lived and intangible assets for recoverability when events or changes in circumstances
indicate that the carrying value of long-lived or intangible assets may not be recoverable. The carrying amount of a
long-lived asset or intangible asset with a definite life is deemed not recoverable if it exceeds the sum of the
undiscounted cash flows expected to result from the use and eventual disposition of the assets. In the event a test
indicates that such cash flows cannot be expected to be sufficient to fully recover the assets, the assets are
considered impaired and written down to their estimated fair value.
Con Edison's intangible assets with definite lives consist primarily of power purchase agreements, which were
identified as part of purchase price allocations associated with acquisitions made by the Clean Energy Businesses
in 2016 and 2018. At December 31, 2022 and 2021, intangible assets arising from power purchase agreements
were $1,219 million and $1,290 million, net of accumulated amortization of $359 million and $288 million,
respectively, and were being amortized over the life of each agreement. The Clean Energy Businesses were
classified as held for sale as of December 31, 2022, and amortization on their assets was not recorded for the three
months ended December 31, 2022. See "Assets and Liabilities Held for Sale" below, and Note X. Excluding power
purchase agreements, Con Edison’s other intangible assets were $2 million, net of accumulated amortization of $9
million at December 31, 2022 and 2021. CECONY’s other intangible assets were immaterial at December 31, 2022
and 2021. Con Edison recorded amortization expense related to its intangible assets of $71 million in 2022, $95
million in 2021, and $102 million in 2020. Con Edison expects amortization expense to be immaterial over each of
the next five years. No impairment charges were recorded on Con Edison's long-lived assets or intangible assets
with definite lives in 2022 or 2021.
Recoverable Energy Costs
The Utilities generally recover all of their prudently incurred fuel, purchased power and gas costs, including hedging
gains and losses, in accordance with rate provisions approved by the applicable state public utility regulators. If the
actual energy supply costs for a given month are more or less than the amounts billed to customers for that month,
the difference in most cases is recoverable from or refundable to customers. Differences between actual and billed
electric and steam supply costs are generally deferred for charge or refund to customers during the next billing cycle
(normally within one or two months). For the Utilities’ gas costs, differences between actual and billed gas costs
during the 12-month period ending each August are charged or refunded to customers during a subsequent 12-
month period.
New York Independent System Operator (NYISO)
The Utilities purchase electricity through the wholesale electricity market administered by the NYISO. The difference
between purchased power and related costs initially billed to the Utilities by the NYISO and the actual cost of power
subsequently calculated by the NYISO is refunded by the NYISO to the Utilities, or paid to the NYISO by the
Utilities. The reconciliation payments or receipts are recoverable from or refundable to the Utilities’ customers.
Certain other payments to or receipts from the NYISO are also subject to reconciliation, with shortfalls or amounts in
excess of specified rate allowances recoverable from or refundable to customers. These include proceeds from the
sale through the NYISO of transmission rights on CECONY’s transmission system (transmission congestion
contracts or TCCs).
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CON EDISON ANNUAL REPORT 2022
Temporary Cash Investments
Temporary cash investments are short-term, highly-liquid investments that generally have maturities of three months
or less at the date of purchase. They are stated at cost, which approximates market. The Companies consider
temporary cash investments to be cash equivalents.
Investments
Accounting for Investments
Con Edison’s investments consist primarily of the investments of Con Edison Transmission that are accounted for
under the equity method and the fair value of the Utilities’ supplemental retirement income plan and deferred income
plan assets.
The accounting rules require Con Edison to evaluate its investments periodically to determine whether they are
impaired. The standard for determining whether an impairment exists and must be recorded is whether an other-
than-temporary decline in carrying value has occurred. Changes in economic conditions, forecasted cash flows and
the regulatory environment, among other factors, could require equity method investments to recognize a decrease
in carrying value for an other-than-temporary decline. When management believes such a decline may have
occurred, the fair value of the investment is estimated using market inputs, when observable, or a market valuation
model such as a discounted cash flow analysis. The fair value is compared to the carrying value of the investment in
order to determine the amount of impairment to record, if any.
The evaluation and measurement of impairments involve uncertainties. The judgments that Con Edison makes to
estimate the fair value of its equity method investments are based on assumptions that management believes are
reasonable, and variations in these estimates or the underlying assumptions, or the receipt of additional market
information, could have a material impact on whether a triggering event is determined to exist or the amount of any
such impairment. Additionally, if the projects in which Con Edison holds these investments recognize an impairment,
Con Edison may record a share of that impairment loss and would evaluate its investment for an other-than-
temporary decline in carrying value as described above.
2021 Partial Impairment of Investment in Stagecoach Gas Services LLC (Stagecoach)
In May 2021, a subsidiary of Con Edison Gas Pipeline and Storage, LLC (CET) entered into a purchase and
sale agreement pursuant to which the subsidiary and its joint venture partner agreed to sell their combined interests
in Stagecoach Gas Services LLC (Stagecoach) for a total of $1,225 million, of which $629 million was attributed to
CET for its 50 percent interest. The purchase and sale agreement contemplated a two-stage closing, the first of
which was completed in July 2021 and the second of which was completed in November 2021.
As a result of information made available to Stagecoach as part of the sale process, Stagecoach performed
impairment tests that resulted in Stagecoach recording impairment charges of $414 million for the year ended
December 31, 2021. Accordingly, Con Edison recorded pre-tax impairment losses on its 50 percent interest in
Stagecoach of $212 million ($147 million after-tax), including working capital and transaction cost adjustments,
within "Investment income/(loss)" on Con Edison's consolidated income statement for the year ended
December 31, 2021.
Stagecoach’s impairment charges and information obtained from the sales process constituted triggering events for
Con Edison's investment in Stagecoach as of March 31, 2021 and June 30, 2021. Con Edison evaluated the
carrying value of its investment in Stagecoach for other-than-temporary declines in value using income and market-
based approaches. Con Edison determined that the carrying value of its investment in Stagecoach of $667 million
and $630 million as of March 31, 2021 and June 30, 2021, respectively, was not impaired. The carrying value of
$630 million at June 30, 2021 reflected the final sales price received in July and the remaining amount received in
November 2021, including closing adjustments. CET had no remaining investment in Stagecoach as of
December 31, 2021 and 2022.
CON EDISON ANNUAL REPORT 2022
125
2020 and 2021 Partial Impairments of Investment in Mountain Valley Pipeline, LLC (MVP)
In January 2016, Con Edison Gas Pipeline and Storage, LLC (CET), an indirect subsidiary of Con Edison, acquired
a 12.5 percent equity interest in MVP, a company developing a proposed 300-mile gas transmission project (the
Project) in WV and VA. During 2019, Con Edison exercised its right to limit, and did limit, its cash contributions to
the joint venture to approximately $530 million, which reduced CET's interest in MVP to 11.3 percent and 10.2
percent as of December 31, 2020 and 2021, respectively. As of December 31, 2022 CET's interest in MVP is
9.6 percent and is expected to be reduced to 8.0 percent based on the Project's current cost estimate and CET's
previous capping of its cash contributions. As of December 31, 2021 and 2022, the Project was approximately
94 percent complete.
During 2020, progress was made on the construction of the Project, and the U.S. Supreme Court issued favorable
decisions in cases unrelated to MVP regarding the permitting process for pipeline construction and water crossings.
In November 2020, the U.S. Court of Appeals for the Fourth Circuit issued a stay on the Nationwide Permit 12,
effectively blocking the Project’s ability to pursue water crossings under that permit. As a result, in November 2020
the Project applied to the FERC for a certificate amendment to bore under water bodies in a portion of the Project in
WV, allowing this portion of the pipe to be completed and placed in-service while a plan for the remaining water
crossings was pursued. If approved, this certificate amendment would have led to additional Project costs and
would have extended the anticipated in-service date. In January 2021, the FERC did not approve the requested
certificate amendment. Later in January 2021, the Project indicated its plans to apply for U.S. Army Corps of
Engineers individual permits for certain water crossings and a new certificate amendment application to the FERC
to bore under other water crossings that, in total, would cover the entire Project length.
The uncertainty related to obtaining necessary water crossing permits, the resulting Project costs and the likelihood
of the Project not reaching eventual completion increased as a result of actions taken by the U.S. Court of Appeals
for the Fourth Circuit. This action and associated delays constituted a triggering event (the "2020 triggering event")
that required Con Edison to test its investment in MVP for an other-than-temporary impairment as of December 31,
2020.
In December 2021, the VA Department of Environmental Quality and the WV Department of Environmental
Protection both issued water quality certification permits which are required in order for the U.S. Army Corps of
Engineers to proceed with the permitting process for construction of certain Project water crossings. In January
2022, the U.S. Court of Appeals for the Fourth Circuit rejected permits for crossings through the Jefferson National
Forest issued by the U.S. Forest Service and Bureau of Land Management. In February 2022, the U.S. Court of
Appeals for the Fourth Circuit vacated a biological opinion from the U.S. Fish and Wildlife Service, applicable to all
remaining construction. The biological opinion had been issued and was the subject of litigation prior to December
31, 2021. Con Edison believed that the February 2022 action by the U.S. Court of Appeals for the Fourth Circuit,
along with the potential outcome of other matters pending before that Court, may lead to further delays and
increased Project costs, which constituted a triggering event (the “2021 triggering event”) that required Con Edison
to test its investment in MVP for an other-than-temporary impairment as of December 31, 2021.
In response to the 2020 triggering event and 2021 triggering event, Con Edison assessed the value of its equity
investment in the Project to determine whether the fair value of its investment in MVP had declined below its
carrying value on an other-than-temporary basis as of December 31, 2020 and 2021, respectively. The estimated
fair value of the investment was determined using a discounted cash flow analysis, which is a level 3 fair value
measurement. The analysis discounted probability-weighted future cash flows, including revenues based on long-
term firm transportation contracts, that are secured for the first 20 years following completion of the Project. See
Note U. Con Edison has also assumed cash flows extending beyond this period. All cash flows were discounted at a
pre-tax discount rate of 8.3 percent and then weighted based on Con Edison’s estimate of the likelihood that the
Project will be completed. For the 2020 triggering event, Con Edison estimated that the likelihood of Project
completion was in the upper end of a reasonably possible range. For the 2021 triggering event, Con Edison
anticipated that the Project faces legal and regulatory challenges that make construction completion increasingly
remote. The Project faces additional delays and increased costs that could further reduce CET's interest in MVP to
below 8 percent based on CET's previous capping of its cash contributions. The likelihood that the Project will be
completed and, for 2020, the discount rate, are the most significant and sensitive assumptions; changes in these
assumptions may materially change the results of the impairment calculation.
Based on the discounted cash flow analyses, Con Edison concluded as of December 31, 2020 and 2021 that the
fair value of its investment in MVP declined below its carrying value and the declines were other-than-temporary.
Accordingly, Con Edison recorded a pre-tax impairment loss of $320 million ($223 million, after tax) for the year
ended December 31, 2020 that reduced the carrying value of its investment in MVP from $662 million to
$342 million, with an associated deferred tax asset of $53 million. Additionally, Con Edison recorded a pre-tax
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CON EDISON ANNUAL REPORT 2022
impairment loss of $231 million ($162 million, after tax) for the year ended December 31, 2021 that reduced the
carrying value of its investment in MVP from $342 million to $111 million, with an additional $77 million associated
deferred tax asset, totaling a deferred tax asset of $130 million at December 31, 2021 and 2022. The impairments
were recorded within “Investment income (loss)” on Con Edison’s Consolidated Income Statement. In addition,
Con Edison did not record non-cash equity in earnings from allowance for funds used during construction from MVP
beginning in January 2021 and will continue to refrain from recording such amounts until such time as substantial
construction activities resume, which would be indicative of probable Project completion. There were no
impairments or substantial changes in the carrying value of Con Edison's investment in MVP for the
year ended December 31, 2022.
There is risk that the fair value of Con Edison’s investment in MVP may be further or fully impaired in the future.
There are ongoing legal and regulatory matters that must be resolved favorably before the Project can be
completed. Assumptions and estimates used to test Con Edison’s investment in MVP for impairment may change if
adverse or delayed resolutions to the Project’s pending legal and regulatory challenges were to occur, which could
have a material adverse effect on the fair value of Con Edison’s investment in MVP.
Summary of Investment Balances
The following investment assets are included in the Companies' consolidated balance sheets at December 31, 2022
and 2021:
(Millions of Dollars)
CET investment in Mountain Valley Pipeline, LLC (a)
Supplemental retirement income plan assets (b)
Deferred income plan assets
CET investment in New York Transco, LLC (c)
Other
Total investments
Con Edison
CECONY
2022
$111
459
93
176
2
$841
2021
$111
525
102
112
3
$853
2022
$—
439
93
—
7
2021
$—
499
102
—
7
$539
$608
(a) At December 31, 2022 and 2021, CET's cash investment in MVP was $530 million. In May 2021, the operator of the Mountain Valley
Pipeline indicated that, subject to receipt of certain authorizations and resolution of certain challenges, it is targeting an in-service date for
the project of the second half of 2023 at an overall project cost of approximately $6,600 million excluding allowance for funds used during
construction. See "2020 and 2021 Partial Impairments of Investment in Mountain Valley Pipeline, LLC (MVP)" above.
(b) See Note E.
(c) CET owns a 45.7 percent interest in New York Transco, LLC.
Pension and Other Postretirement Benefits
The accounting rules for retirement benefits require an employer to recognize an asset or liability for the overfunded
or underfunded status of its pension and other postretirement benefit plans. For a pension plan, the asset or liability
is the difference between the fair value of the plan’s assets and the projected benefit obligation. For any other
postretirement benefit plan, the asset or liability is the difference between the fair value of the plan’s assets and the
accumulated postretirement benefit obligation. The accounting rules generally require employers to recognize all
unrecognized prior service costs and credits and unrecognized actuarial gains and losses in accumulated other
comprehensive income/(loss) (OCI), net of tax. Such amounts will be adjusted as they are subsequently recognized
as components of total periodic benefit cost or income pursuant to the current recognition and amortization
provisions.
For the Utilities’ pension and other postretirement benefit plans, regulatory accounting treatment is generally applied
in accordance with the accounting rules for regulated operations. Unrecognized prior service costs or credits and
unrecognized actuarial gains and losses are recorded to regulatory assets or liabilities, rather than OCI. See Notes
E and F.
The total periodic benefit costs are recognized in accordance with the accounting rules for retirement benefits.
Investment gains and losses are recognized in expense over a 15-year period and other actuarial gains and losses
are recognized in expense over a 10-year period, subject to the deferral provisions in the rate plans.
In accordance with the Statement of Policy issued by the NYSPSC and its current electric, gas and steam rate
plans, CECONY defers for payment to or recovery from customers the difference between such expenses and the
CON EDISON ANNUAL REPORT 2022
127
amounts for such expenses reflected in rates. O&R also defers such difference pursuant to its NY rate plans.
See Note B.
The Companies calculate the expected return on pension and other postretirement benefit plan assets by
multiplying the expected rate of return on plan assets by the market-related value (MRV) of plan assets at the
beginning of the year, taking into consideration anticipated contributions and benefit payments that are to be made
during the year. The accounting rules allow the MRV of plan assets to be either fair value or a calculated value that
recognizes changes in fair value in a systematic and rational manner over not more than five years. The Companies
use a calculated value when determining the MRV of the plan assets that adjusts for 20 percent of the difference
between fair value and expected MRV of plan assets. This calculated value has the effect of stabilizing variability in
assets to which the Companies apply the expected return.
Federal Income Tax
In accordance with accounting rules for income taxes, the Companies have recorded an accumulated deferred
federal income tax liability at current tax rates for temporary differences between the book and tax basis of assets
and liabilities. In accordance with rate plans, the Utilities have recovered amounts from customers for a portion of
the tax liability they will pay in the future as a result of the reversal or “turn-around” of these temporary differences.
As to the remaining deferred tax liability, the Utilities had established regulatory assets for the net revenue
requirements to be recovered from customers for the related future tax expense pursuant to the NYSPSC's 1993
Policy Statement approving accounting procedures consistent with accounting rules for income taxes and providing
assurances that these future increases in taxes will be recoverable in rates.
Accumulated deferred investment tax credits are amortized ratably over the lives of the related properties and
applied as a reduction to future federal income tax expense.
Con Edison and its subsidiaries file a consolidated federal income tax return. The consolidated income tax liability is
allocated to each member of the consolidated group using the separate return method. Each member pays or
receives an amount based on its own taxable income or loss in accordance with a consolidated tax allocation
agreement. Tax loss and tax credit carryforwards are allocated among members in accordance with consolidated
tax return regulations.
State Income Tax
Con Edison and its subsidiaries file a combined New York State Corporation Business Franchise Tax Return. Similar
to a federal consolidated income tax return, the income of all entities in the combined group is subject to New York
State taxation, after adjustments for differences between federal and New York law and apportionment of income
among the states in which the company does business. Each member’s share of the New York State tax is based
on its own New York State taxable income or loss.
Research and Development Costs
Research and development costs are charged to operating expenses as incurred. Research and development costs
were as follows:
(Millions of Dollars)
Con Edison
CECONY
For the Years Ended December 31,
2022
$27
25
2021
$25
24
2020
$24
23
Reclassification
Certain prior period amounts have been reclassified within the Companies' Consolidated Statements of Cash Flows
and Consolidated Balance Sheets to conform with current period presentation.
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CON EDISON ANNUAL REPORT 2022
Earnings Per Common Share
Con Edison presents basic and diluted earnings per share (EPS) on the face of its consolidated income statement.
Basic EPS is calculated by dividing earnings available to common shareholders (“Net income for common stock” on
Con Edison’s consolidated income statement) by the weighted average number of Con Edison common shares
outstanding during the period. In the calculation of diluted EPS, weighted average shares outstanding are increased
for additional shares that would be outstanding if potentially dilutive securities were converted to common stock.
Potentially dilutive securities for Con Edison consist of restricted stock units and deferred stock units for which the
average market price of the common shares for the period was greater than the exercise price (see Note O) and its
common shares that are subject to forward sale agreements (see Note C). Before the issuance of common shares
upon settlement of the forward sale agreements, the shares will be reflected in the company’s diluted earnings per
share calculations using the treasury stock method. Under this method, the number of common shares used in
calculating diluted earnings per share is deemed to be increased by the excess, if any, of the number of shares that
would be issued upon physical settlement of the forward sale agreements over the number of shares that could be
purchased by the company in the market (based on the average market price during the period) using the proceeds
due upon physical settlement (based on the adjusted forward sale price at the end of the reporting period).
Basic and diluted EPS for Con Edison are calculated as follows:
(Millions of Dollars, except per share amounts/Shares in Millions)
Net income for common stock
Weighted average common shares outstanding – basic
Add: Incremental shares attributable to effect of potentially dilutive securities
Adjusted weighted average common shares outstanding – diluted
Net Income per common share – basic
Net Income per common share – diluted
For the Years Ended December 31,
2022
$1,660
354.5
1.3
355.8
$4.68
$4.66
2021
$1,346
348.4
1.0
349.4
$3.86
$3.85
2020
$1,101
334.8
0.9
335.7
$3.29
$3.28
The computation of diluted EPS for the years ended December 31, 2021 and 2020 excludes immaterial amounts of
performance share awards that were not included because of their anti-dilutive effect.
Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and contingent assets and liabilities at the
date of the financial statements and the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
CON EDISON ANNUAL REPORT 2022
129
Changes in Accumulated Other Comprehensive Income/(Loss) by Component
Changes to accumulated other comprehensive income/(loss) (OCI) for Con Edison and CECONY are as follows:
(Millions of Dollars)
Con Edison
CECONY
Accumulated OCI, net of taxes, at December 31, 2019 (a)
OCI before reclassifications, net of tax of $4 and $1 for Con Edison and CECONY, respectively
Amounts reclassified from accumulated OCI related to pension plan liabilities, net of tax of $(2) for
Con Edison (a)(b)
Total OCI, net of taxes, at December 31, 2020
Accumulated OCI, net of taxes, at December 31, 2020 (a)
OCI before reclassifications, net of tax of $(8) and $(2) for Con Edison and CECONY, respectively
Amounts reclassified from accumulated OCI related to pension plan liabilities, net of tax of $(3) and
$(1) for Con Edison and CECONY, respectively (a)(b)
Total OCI, net of taxes, at December 31, 2021
Accumulated OCI, net of taxes, at December 31, 2021 (a)
OCI before reclassifications, net of tax of $(5) and $(1) for Con Edison and CECONY, respectively
Amounts reclassified from accumulated OCI related to pension plan liabilities, net of tax of $(1) and
for Con Edison (a)(b)
Total OCI, net of taxes, at December 31, 2022
Accumulated OCI, net of taxes, at December 31, 2022 (a)
$(19)
(11)
5
(6)
$(25)
22
8
30
$5
13
4
17
$22
$(6)
(3)
2
(1)
$(7)
5
2
7
$—
3
1
4
$4
(a) Tax reclassified from accumulated OCI is reported in the income tax expense line item of the consolidated income statement.
(b) For the portion of unrecognized pension and other postretirement benefit costs relating to the Utilities, costs are recorded into, and
amortized out of, regulatory assets and liabilities instead of OCI. The net actuarial losses and prior service costs recognized during the
period are included in the computation of total periodic pension and other postretirement benefit cost. See Notes E and F.
Reconciliation of Cash, Temporary Cash Investments and Restricted Cash
Cash, temporary cash investments and restricted cash are presented on a combined basis in the Companies’
consolidated statements of cash flows. At December 31, 2022 and 2021, cash, temporary cash investments and
restricted cash for Con Edison and CECONY were as follows:
(Millions of Dollars)
Cash and temporary cash investments
Restricted cash (a)
Total cash, temporary cash investments and restricted cash
At December 31,
Con Edison
CECONY
2022
$1,282
223
$1,505
2021
$992
154
$1,146
2022
$1,056
—
$1,056
2021
$920
—
$920
(a) Restricted cash included cash of the Clean Energy Businesses' renewable electric project subsidiaries ($223 million and $154 million at
December 31, 2022 and 2021, respectively) that, under the related project debt agreements, is restricted to being used for normal operating
expenditures, debt service, and required reserves until the various maturity dates of the project debt. The Clean Energy Businesses were
classified as held for sale as of December 31, 2022. See "Assets and Liabilities Held for Sale," below, and Note X. Accordingly, the
restricted cash of the Clean Energy Businesses is shown in "Assets Held for Sale" on Con Edison's consolidated balance sheet for 2022.
Use of Hypothetical Liquidation at Book Value
For certain investments of the Clean Energy Businesses, Con Edison has determined that the use of HLBV
accounting is reasonable and appropriate to attribute income and loss to the tax equity investors. Using the HLBV
method, the company's earnings from the projects are adjusted to reflect the income or loss allocable to the tax
equity investors calculated based on how the project would allocate and distribute its cash if it were to sell all of its
assets for their carrying amounts and liquidate at a particular point in time. Under the HLBV method, the company
calculates the liquidation value allocable to the tax equity investors at the beginning and end of each period based
on the contractual liquidation waterfall and adjusts its income for the period to reflect the change in the liquidation
value allocable to the tax equity investors based on the terms of the partnerships' operating agreements. See Note
S. The Clean Energy Businesses were classified as held for sale as of December 31, 2022. See "Assets and
Liabilities Held for Sale," below, and Note X.
Assets and Liabilities Held for Sale
Generally, a long-lived asset or business to be sold is classified as held for sale in the period in which management,
with approval from the Board of Directors, commits to a plan to sell, and a sale is expected to be completed within
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CON EDISON ANNUAL REPORT 2022
one year. During the first nine months of 2022, Con Edison considered strategic alternatives with respect to the
Clean Energy Businesses. As described further in Note X, on October 1, 2022, Con Edison's management received
authority to commit to a plan to sell the Clean Energy Businesses and entered into a purchase and sale agreement.
As of October 1, 2022 the Clean Energy Businesses met the held-for-sale criteria, and their assets and liabilities are
included in "assets held for sale" and "liabilities held for sale" in the current assets and current liabilities sections of
the Con Edison consolidated balance sheet, respectively. Con Edison recorded the Clean Energy Businesses'
assets and liabilities, once held for sale, at the lower of their carrying value or their estimated fair value less cost to
sell, and also stopped recording depreciation and amortization on assets held for sale. The "Noncontrolling interest"
on Con Edison's consolidated balance sheet reflects the noncontrolling interest in projects of the Clean Energy
Businesses, which projects were held for sale as of December 31, 2022. See Note S.
Fair value is the amount at which an asset, liability or business could be bought or sold in a current transaction
between willing parties and may be estimated using a number of techniques, or may be observable using quoted
market prices. Con Edison used a market approach consisting of the contractual sales price adjusted for estimated
working capital and other contractual purchase price adjustments to determine the fair value of the Clean Energy
Businesses as of December 31, 2022, and subtracted estimated costs to sell from that calculated fair value. The
resulting net fair value of the Clean Energy Businesses' assets exceeded the carrying value of the Clean Energy
Businesses' assets, and accordingly no impairments were recorded.
The sale of the Clean Energy Businesses does not represent a strategic shift that has or will have a major effect on
Con Edison, and as such, does not qualify for treatment as a discontinued operation.
For further information, see Note X.
CON EDISON ANNUAL REPORT 2022
131
Note B – Regulatory Matters
Rate Plans
The Utilities provide service to NY customers according to the terms of tariffs approved by the NYSPSC. Tariffs for
service to customers of Rockland Electric Company (RECO), O&R’s NJ regulated utility subsidiary, are approved by
the New Jersey Board of Public Utilities (NJBPU). The tariffs include schedules of rates for service that limit the
rates charged by the Utilities to amounts that the Utilities recover from their customers costs approved by the
regulator, including capital costs, of providing service to customers as defined by the tariff. The tariffs implement rate
plans adopted by state utility regulators in rate orders issued at the conclusion of rate proceedings. Pursuant to the
Utilities’ rate plans, there generally can be no change to the charges to customers during the respective terms of the
rate plans other than specified adjustments provided for in the rate plans. The Utilities’ rate plans each cover
specified periods, but rates determined pursuant to a plan generally continue in effect until a new rate plan is
approved by the state utility regulator.
Common provisions of the Utilities’ NY rate plans include:
Recoverable energy costs that allow the Utilities to recover on a current basis the costs for the energy they supply
with no mark-up to their full-service customers.
Regulatory reconciliations that reconcile pension and other postretirement benefit costs, environmental remediation
costs, property taxes, variable-rate tax-exempt debt and certain other costs to amounts reflected in delivery rates for
such costs. In addition, changes in the Utilities' costs not reflected in rates, in excess of certain amounts, resulting
from changes in tax or changes in legislation, regulation or related actions, are deferred as a regulatory asset or
regulatory liability to be reflected in the Utilities' next rate plan or in a manner to be determined by the NYSPSC.
Also, the Utilities generally retain the right to petition for recovery or accounting deferral of extraordinary and
material cost increases and provision is sometimes made for the utility to retain a share of cost reductions, for
example, property tax refunds.
Revenue decoupling mechanisms that reconcile actual energy delivery revenues to the authorized delivery
revenues approved by the NYSPSC. The difference is accrued with interest for refund to, or recovery from
customers, as applicable.
Earnings sharing that require the Utilities to defer for customer benefit a portion of earnings over specified rates of
return on common equity. There is no symmetric mechanism for earnings below specified rates of return on
common equity.
Negative revenue adjustments for failure to meet certain performance standards relating to service, reliability, safety
and other matters.
Other revenue adjustments represent positive revenue adjustments, positive incentives, and earnings adjustments
mechanisms for achievement of performance standards related to achievement of clean energy goals, safety and
other matters.
Net utility plant reconciliations that require deferral as a regulatory liability of the revenue requirement impact of the
amount, if any, by which actual average net utility plant balances are less than amounts reflected in rates. There is
generally no symmetric mechanism if actual average net utility plant balances are more than amounts reflected in
rates.
Rate base, as reflected in the rate plans, is, in general, the sum of the Utilities’ net plant, working capital and certain
regulatory assets less deferred taxes and certain regulatory liabilities. For each rate plan, the NYSPSC uses a
forecast of the average rate base for each year that new rates would be in effect (“rate year”).
Weighted average cost of capital is determined based on the authorized common equity ratio, return on common
equity, cost of long-term debt and cost of customer deposits reflected in each rate plan. For each rate plan, the
revenues designed to provide the utility a return on invested capital for each rate year are determined by multiplying
each utility rate base by its pre–tax weighted average cost of capital. The Utilities’ actual return on common equity
will reflect their actual operations for each rate year, and may be more or less than the authorized return on equity
reflected in their rate plans (and if more, may be subject to earnings sharing).
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CON EDISON ANNUAL REPORT 2022
Current Rate Cases
On February 16, 2023, CECONY, the New York State Department of Public Service (NYSDPS) and other parties
entered into a Joint Proposal for CECONY electric and gas rate plans for the three-year period January 2023
through December 2025. The Joint Proposal is subject to NYSPSC approval. The Joint Proposal is summarized in
the tables below.
In November 2022, CECONY filed a request with the NYSPSC for an increase in the rates it charges for steam
service rendered in New York, effective November 2023, of $137 million. The filing reflects a return on common
equity of 10 percent and a common equity ratio of 50 percent. CECONY is requesting a new mechanism for
decoupling revenues from steam consumption and the continuation of provisions with respect to recovery from
customers of the cost of fuel and purchased steam and the reconciliation of actual expenses allocable to the steam
business to the amounts for such expenses reflected in steam rates for pension and other postretirement benefits,
environmental remediation expenses and uncollectible costs. In addition, the company is requesting full
reconciliation for property taxes, municipal infrastructure support costs and long-term debt costs. The filing requests
symmetrical reconciliation for labor and non-labor inflation rate to the extent that the actual inflation rate deviates
from what is assumed in the revenue requirement by 50 basis points up or down. The filing includes supplemental
information regarding steam rate plans for November 2024 through October 2025 and November 2025 through
October 2026, which the company is not requesting but would consider through settlement discussions. For
purposes of illustration, rate increases of $54 million and $49 million effective November 2024 and 2025,
respectively, were calculated based upon an assumed return on common equity of 10 percent and a common equity
ratio of 50 percent.
In February 2023, CECONY updated its November 2022 request to the NYSPSC for a steam rate increase effective
November 2023. The company increased its requested November 2023 rate increase by $4 million to $141 million,
increased its illustrated November 2024 rate increase by $1 million to $55 million and increased its illustrated
November 2025 rate increase by $4 million to $53 million.
CON EDISON ANNUAL REPORT 2022
133
The following tables contain a summary of the Utilities’ rate plans:
CECONY – Electric
Effective period
Base rate changes
Amortizations to income of net
regulatory (assets) and liabilities
January 2020 – December 2022 (a)
January 2023 – December 2025 (l)
Yr. 1 – $113 million (b)
Yr. 2 – $370 million (b)
Yr. 3 – $326 million (b)
Yr. 1 – $267 million (c)
Yr. 2 – $269 million (c)
Yr. 3 – $272 million (c)
Yr. 1 – $442 million (d)
Yr. 2 – $518 million (d)
Yr. 3 – $382 million (d)
Yr. 1 – $104 million (k)
Yr. 2 – $49 million (k)
Yr. 3 – $-205 million (k)
Other revenue sources
Retention of $75 million of annual
transmission congestion revenues.
Retention of $75 million of annual transmission
congestion revenues.
Potential earnings adjustment mechanism
incentives for energy efficiency and other
potential incentives of up to:
Yr. 1 - $69 million
Yr. 2 - $74 million
Yr. 3 - $79 million
In 2020, 2021 and 2022, the company
recorded $34 million, $64 million and
$33 million primarily related to earnings
adjustment mechanism incentives for energy
efficiency, respectively.
In 2022, the company recorded a positive
incentive of $4 million.
Continuation of reconciliation of actual to
authorized electric delivery revenues.
In 2020, 2021 and 2022, the company
deferred for recovery from customers $242
million, $226 million and $90 million of
revenues, respectively.
Potential earnings adjustment mechanism
incentives for energy efficiency and other
potential incentives of up to:
Yr. 1 - $70 million
Yr. 2 - $75 million
Yr. 3 - $79 million
Continuation of reconciliation of actual to
authorized electric delivery revenues.
Continuation of current rate recovery of
purchased power and fuel costs.
Continuation of current rate recovery of
purchased power and fuel costs.
Potential charges if certain performance
targets relating to service, reliability, safety
and other matters are not met:
Yr. 1 - $450 million
Yr. 2 - $461 million
Yr. 3 - $476 million
In 2020, the company recorded negative
revenue adjustments of $5 million. In 2021,
the company did not record any negative
revenue adjustments. In 2022, the company
recorded negative revenue adjustments of
$3 million.
Continuation of reconciliation of expenses for
pension and other postretirement benefits,
variable-rate debt, major storms, property
taxes (e), municipal infrastructure support
costs (f), the impact of new laws and
environmental site investigation and
remediation to amounts reflected in rates (g).
In 2020 and 2021, the company deferred
$288 million and $191 million of net regulatory
assets, respectively. In 2022, the company
deferred $138 million of net regulatory
liabilities.
Target levels reflected in rates:
Electric average net plant target excluding
advanced metering infrastructure (AMI):
Yr. 1 - $24,491 million
Yr. 2 - $25,092 million
Yr. 3 - $25,708 million
AMI (h):
Yr. 1 - $572 million
Yr. 2 - $740 million
Yr. 3 - $806 million
In 2020, the company deferred $4.1 million as
a regulatory asset. In 2021 and 2022, the
company deferred $3.2 million and
$1.8 million, as a regulatory liability,
respectively.
Yr. 1 - $21,660 million
Yr. 2 - $22,783 million
Yr. 3 - $23,926 million
Potential charges if certain performance targets
relating to service, reliability, safety and other
matters are not met:
Yr. 1 - $516 million
Yr. 2 - $557 million
Yr. 3 - $597 million
Reconciliation of late payment charges (j) and
expenses for uncollectibles, pension and other
postretirement benefits, variable-rate debt, major
storms, property taxes (e), municipal
infrastructure support costs (f), the impact of new
laws and environmental site investigation and
remediation to amounts reflected in rates (g).
Target levels reflected in rates:
Electric average net plant target excluding
advanced metering infrastructure (AMI) and
Customer Service System (CSS) for Yr. 1:
Yr. 1 - $27,847 million
Yr. 2 - $29,884 million
Yr. 3 - $31,026 million
AMI (h):
Yr. 1 - $744 million
CSS:
Yr. 1 - $11 million
Yr. 1 - $26,095 million
Yr. 2 - $27,925 million
Yr. 3 - $29,362 million
Revenue decoupling mechanisms
Recoverable energy costs
Negative revenue adjustments
Regulatory reconciliations
Net utility plant reconciliations
Average rate base
134
CON EDISON ANNUAL REPORT 2022
Weighted average cost of capital (after-
tax)
Yr. 1 to Yr. 3 – 6.61 percent
Authorized return on common equity
8.8 percent
Actual return on common equity (i) (j)
Yr. 1 – 8.5 percent
Yr. 2 – 8.03 percent
Yr. 3 – 8.41 percent
Yr. 1 - 6.75 percent
Yr. 2 - 6.79 percent
Yr. 3 - 6.85 percent
9.25 percent
Earnings sharing
Most earnings above an annual earnings
threshold of 9.3 percent are to be applied to
reduce regulatory assets for environmental
remediation and other costs accumulated in
the rate year.
Most earnings above an annual earnings
threshold of 9.75 percent are to be applied to
reduce regulatory assets for environmental
remediation and other costs accumulated in the
rate year.
In 2020, 2021 and 2022, the company had no
earnings sharing above the threshold. A
reserve of $4.3 million was recorded in 2021
related to a potential adjustment to the excess
earnings sharing amount for 2016.
Cost of long-term debt
Yr. 1 to Yr. 3 – 4.63 percent
Yr. 1 – 4.46 percent
Yr. 2 – 4.54 percent
Yr. 3 – 4.64 percent
Common equity ratio
48 percent
48 percent
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
(j)
(k)
(l)
In January 2020, the NYSPSC approved the October 2019 Joint Proposal for CECONY's electric rate plan for January 2020 through
December 2022. If at the end of any semi-annual period ending June 30 and December 31, Con Edison’s investments in its non-utility
businesses exceed 15 percent of its total consolidated revenues, assets or cash flow, or if the ratio of holding company debt to total
consolidated debt rises above 20 percent, CECONY is required to notify the NYSPSC and submit a ring-fencing plan or a demonstration
why additional ring-fencing measures (see Note U) are not necessary.
Base rates reflect recovery by the company of certain costs of its energy efficiency, demonstration projects, non-wire alternative projects
(including the Brooklyn Queens demand management program), and off-peak electric vehicle charging programs (Yr. 1 - $206 million; Yr. 2
- $245 million; and Yr. 3 - $251 million) over a 10-year period, including the overall pre-tax rate of return on such costs.
Amounts reflect amortization of the 2018 tax savings under the federal Tax Cuts and Jobs Act of 2017 (TCJA) allocable to CECONY’s
electric customers ($377 million) over a three-year period ($126 million annually), the protected portion of the regulatory liability for excess
deferred income taxes allocable to CECONY’s electric customers ($1,663 million) over the remaining lives of the related assets
($49 million in Yr. 1, $50 million in Yr. 2, and $53 million in Yr. 3) and the unprotected portion of the net regulatory liability ($784 million)
over five years ($157 million annually). Amounts also reflect amortization of the regulatory asset for deferred MTA power reliability costs
($238 million) over a five-year period ($48 million annually).
The electric base rate increases shown above will be implemented with increases of $457 million in Yr. 1; $457 million in Yr. 2; and
$457 million in Yr. 3 in order to levelize the customer bill impact. New rates will be effective as of January 1, 2023. CECONY will begin
billing customers at the new levelized rate once the Joint Proposal is approved by the NYSPSC. Any shortfall in revenues due to the
timing of billing to customers will be collected through a surcharge billed through 2024, including a carrying charge on the outstanding
balance. Base rates reflect recovery by the company of certain costs of its energy efficiency, demonstration projects, non-wire alternative
projects (including the Brooklyn Queens demand management program), and off-peak electric vehicle charging programs (Yr. 1 -
$244 million; Yr. 2 - $237 million; and Yr. 3 - $281 million) over periods varying between seven and fifteen years, including the overall pre-
tax rate of return on such costs.
Deferrals for property taxes are limited to 90 percent of the difference from amounts reflected in rates, subject to an annual maximum for
the remaining difference of not more than a maximum number of basis points impact on return on common equity: reflected in the January
2020 - December 2022 rate plan Yr 1 - 10.0 basis points; Yr 2 - 7.5 basis points; and Yr 3 - 5.0 basis points; reflected in the January 2023
- December 2025 Yr 1 - 10.0 basis points; Yr 2 - 5.0 basis points; and Yr 3 - 5.0 basis points,
In general, if actual expenses for municipal infrastructure support (other than company labor) are below the amounts reflected in rates the
company will defer the difference for credit to customers, and if the actual expenses are above the amount reflected in rates the company
will defer for recovery from customers 80 percent of the difference subject to a maximum deferral, subject to certain conditions, of 15
percent of the amount reflected in the rate plans.
In addition, the NYSPSC staff continues its focused operations audit to investigate CECONY's income tax accounting. Any NYSPSC
ordered adjustment to CECONY’s income tax accounting is expected to be refunded to or collected from customers, as determined by the
NYSPSC. See "Other Regulatory Matters," below.
Reconciliation of net utility plant for AMI will be done on a combined basis for electric and gas.
Calculated in accordance with the earnings calculation method prescribed in the rate order.
In November 2021, the NYSPSC issued an order that allowed CECONY to recover $43 million of late payment charges and fees that were
not billed for the year ended December 31, 2020. The recalculated return on equity for 2020 which reflects the recovery of these fees is
8.81 percent.
Amounts reflect amortization of the 2018 tax savings under the federal Tax Cuts and Jobs Act of 2017 (TCJA) allocable to CECONY’s
electric customers ($256 million) over a two-year period ($128 million in Yr. 1 and Yr. 2), the protected portion of the regulatory liability for
excess deferred income taxes allocable to CECONY’s electric customers ($1,512 million) over the remaining lives of the related assets
($34 million in Yr. 1, $63 million in Yr. 2, and $34 million in Yr. 3) and the unprotected portion of the net regulatory liability ($306 million)
over two years ($153 million annually). Amounts also reflect amortization of the regulatory asset for deferred MTA power reliability costs
($93 million) over a three-year period ($31 million annually).
The February 2023 Joint Proposal is subject to NYSPSC approval.
CECONY forecasts the need to construct a new project in Jamaica, Queens consisting of two substations and
associated feeders at an estimated cost of $1,100 million (the Eastern Queens Reliability Project). Pursuant to the
Joint Proposal, CECONY may petition the NYSPSC for approval to build and receive cost recovery for the Eastern
Queens Reliability Project no sooner than 30 days after the NYSPSC adopts the Joint Proposal.
CON EDISON ANNUAL REPORT 2022
135
CECONY – Gas
Effective period
Base rate changes
Amortizations to income of net
regulatory (assets) and liabilities
Other revenue sources
January 2020 – December 2022 (a)
January 2023 – December 2025 (l)
Yr. 1 – $84 million (b)
Yr. 2 – $122 million (b)
Yr. 3 – $167 million (b)
Yr. 1 – $45 million (c)
Yr. 2 – $43 million (c)
Yr. 3 – $10 million (c)
Yr. 1 – $217 million (d)
Yr. 2 – $173 million (d)
Yr. 3 – $122 million (d)
Yr. 1 – $31 million (k)
Yr. 2 – $24 million (k)
Yr. 3 – $(11) million (k)
Retention of annual revenues from non-firm
customers of up to $65 million and 15 percent of
any such revenues above $65 million.
Retention of annual revenues from non-firm
customers of up to $65 million and 15 percent of
any such revenues above $65 million.
Potential incentives if performance targets related
to gas leak backlog, leak prone pipe and service
terminations are met:
Yr. 1 – $20 million
Yr. 2 – $22 million
Yr. 3 – $25 million
In 2020, 2021 and 2022, the company recorded
$3 million, $26 million and $8 million of earnings
adjustment mechanism incentives for energy
efficiency, respectively.
In 2020, 2021 and 2022, the company recorded
positive incentives of $13 million, $7 million, and
$9 million respectively. In 2021, the company
reversed $6 million of positive incentives
recorded in 2020 pursuant to an order issued by
the NYSPSC in December 2021.
Continuation of reconciliation of actual to
authorized gas delivery revenues, modified to be
calculated based upon revenue per customer
class instead of revenue per customer.
In 2020, 2021 and 2022, the company deferred
for recovery from customers $27 million,
$100 million and $141 million of revenues,
respectively.
Continuation of current rate recovery of
purchased gas costs.
Potential charges if performance targets relating
to service, safety and other matters are not met:
Yr. 1 – $81 million
Yr. 2 – $88 million
Yr. 3 – $96 million
In 2020 and 2021, the company did not record
any negative revenue adjustments. In 2022, the
company recorded negative revenue adjustments
of $8 million
Continuation of reconciliation of expenses for
pension and other postretirement benefits,
variable-rate tax-exempt debt, major storms,
property taxes (e), municipal infrastructure
support costs (f), the impact of new laws and
environmental site investigation and remediation
to amounts reflected in rates (g).
In 2020 and 2021, the company deferred
$91 million and $14 million of net regulatory
assets, respectively. In 2022, the company
deferred $70 million of net regulatory liabilities.
Target levels reflected in rates:
Gas average net plant target excluding AMI:
Yr. 1 – $8,108 million
Yr. 2 – $8,808 million
Yr. 3 – $9,510 million
AMI (h):
Yr. 1 – $142 million
Yr. 2 – $183 million
Yr. 3 – $211 million
In 2020 and 2021, the company deferred
$24.7 million and $26 million, as a regulatory
liability, respectively. In 2022, the company
deferred $10.8 million as a regulatory asset.
Potential earnings adjusted mechanism
incentives for energy efficiency and other
potential incentives of up to:
Yr. 1 - $18 million
Yr. 2 - $20 million
Yr. 3 - $21 million
Continuation of reconciliation of actual to
authorized gas delivery revenues, modified to be
calculated based upon revenue per customer
class instead of revenue per customer.
Continuation of current rate recovery of
purchased gas costs.
Potential charges if performance targets relating
to service, safety and other matters are not met:
Yr. 1 - $107 million
Yr. 2 - $119 million
Yr. 3 - $130 million
Reconciliation of late payment charges (j) and
expenses for uncollectibles, pension and other
postretirement benefits, variable-rate debt, major
storms, property taxes (e), municipal
infrastructure support costs (f), the impact of new
laws and environmental site investigation and
remediation to amounts reflected in rates (g).
Target levels reflected in rates:
Gas average net plant target excluding AMI and
CSS for Yr. 1:
Yr. 1 - $10,466 million
Yr. 2 - $11,442 million
Yr. 3 - $12,142 million
AMI (h):
Yr. 1 - $234 million
CSS:
Yr. 1 - $2 million
Revenue decoupling mechanisms
Recoverable energy costs
Negative revenue adjustments
Regulatory reconciliations
Net utility plant reconciliations
Average rate base
Yr. 1 – $7,171 million
Yr. 2 – $7,911 million
Yr. 3 – $8,622 million
Yr. 1 - $9,647 million
Yr. 2 - $10,428 million
Yr. 3 - $11,063 million
136
CON EDISON ANNUAL REPORT 2022
Weighted average cost of capital
(after-tax)
Yr. 1 – Yr. 3 - 6.61 percent
Authorized return on common equity
Actual return on common equity (i) (j)
8.8 percent
Yr. 1 – 8.4 percent
Yr. 2 – 8.48 percent
Yr. 3 – 8.93 percent
Yr. 1 – 6.75 percent
Yr. 2 – 6.79 percent
Yr. 3 – 6.85 percent
9.25 percent
Earnings sharing
Most earnings above an annual earnings
threshold of 9.3 percent are to be applied to
reduce regulatory assets for environmental
remediation and other costs accumulated in the
rate year.
Most earnings above an annual earnings
threshold of 9.75 percent are to be applied to
reduce regulatory assets for environmental
remediation and other costs accumulated in the
rate year.
Cost of long-term debt
Yr. 1 – Yr. 3 - 4.63 percent
In 2020, 2021 and 2022, the company had no
earnings above the threshold.
Common equity ratio
48 percent
Yr. 1 – 4.46 percent
Yr. 2 – 4.54 percent
Yr. 3 – 4.64 percent
48 percent
(a)
(b)
(c)
(d)
In January 2020, the NYSPSC approved the October 2019 Joint Proposal for CECONY's gas rate plan for January 2020 through
December 2022. If at the end of any semi-annual period ending June 30 and December 31, Con Edison’s investments in its non-utility
businesses exceed 15 percent of its total consolidated revenues, assets or cash flow, or if the ratio of holding company debt to total
consolidated debt rises above 20 percent, CECONY is required to notify the NYSPSC and submit a ring-fencing plan or a demonstration
why additional ring-fencing measures (see Note U) are not necessary.
The gas base rate increases shown above will be implemented with increases of $47 million in Yr. 1; $176 million in Yr. 2; and
$170 million in Yr. 3 in order to levelize customer bill impacts. Base rates reflect recovery by the company of certain costs of its energy
efficiency program (Yr. 1 - $30 million; Yr. 2 - $37 million; and Yr. 3 - $40 million) over a ten-year period, including the overall pre-tax rate
of return on such costs.
Amounts reflect amortization of the remaining 2018 TCJA tax savings allocable to CECONY’s gas customers ($63 million) over a two year
period ($32 million annually), the protected portion of the regulatory liability for excess deferred income taxes allocable to CECONY’s gas
customers ($725 million) over the remaining lives of the related assets ($14 million in Yr. 1, $14 million in Yr. 2, and $12 million in Yr. 3)
and the unprotected portion of the net regulatory liability ($107 million) over five years ($21 million annually)
The gas base rate increases shown above will be implemented with increases of $187 million in Yr. 1; $187 million in Yr. 2; and
$187 million in Yr. 3 in order to levelize the customer bill impact. New rates will be effective as of January 1, 2023. CECONY will begin
billing customers at the new levelized rate once the Joint Proposal is approved by the NYSPSC. Any shortfall in revenues due to the
timing of billing to customers will be collected through a surcharge billed through 2025, including a carrying charge on the outstanding
balance. Base rates reflect recovery by the company of certain costs of its energy efficiency programs (Yr. 1 - $45 million; Yr. 2 -
$78 million; and Yr. 3 - $62 million) over a fifteen-year period, including the overall pre-tax rate of return on such costs.
(e)-(i) See footnotes (e) - (i) to the table under “CECONY Electric,” above.
(j)
In November 2021, the NYSPSC issued an order that allowed CECONY to recover $7 million of late payment charges and fees that were
not billed for the year ended December 31, 2020. The recalculated return on equity for 2020 which reflects the recovery of these fees is
8.56 percent.
Amounts reflect amortization of the 2018 tax savings under the federal Tax Cuts and Jobs Act of 2017 (TCJA) allocable to CECONY’s gas
customers ($32 million) over a two-year period ($16 million in Yr. 1 and Yr. 2), the protected portion of the regulatory liability for excess
deferred income taxes allocable to CECONY’s gas customers ($679 million) over the remaining lives of the related assets ($9 million in
Yr. 1, $10 million in Yr. 2, and $10 million in Yr. 3) and the unprotected portion of the net regulatory liability ($42 million) over two years
($21 million annually).
The February 2023 Joint Proposal is subject to NYSPSC approval.
(k)
(l)
CON EDISON ANNUAL REPORT 2022
137
CECONY – Steam
Effective period
Base rate changes
Amortizations to income of net
regulatory (assets) and liabilities
Recoverable energy costs
Negative revenue adjustments
Cost reconciliations (c)(d)
Net utility plant reconciliations
January 2014 – December 2016 (a)
Yr. 1 – $(22.4) million (b)
Yr. 2 – $19.8 million (b)
Yr. 3 – $20.3 million (b)
Yr. 4 – None
Yr. 5 – None
Yr. 6 – None
Yr. 7 – None
Yr. 8 – None
$37 million over three years
Current rate recovery of purchased power and
fuel costs.
Potential charges (up to $1 million annually) if
certain steam performance targets are not met. In
years 2014 through 2022, the company did not
record any negative revenue adjustments.
In 2014, 2015, 2016, 2017, 2018, 2019, 2020,
2021 and 2022, the company deferred $42
million of net regulatory liabilities, $17 million of
net regulatory assets, $8 million and $14 million
of net regulatory liabilities, $1 million of net
regulatory assets, $8 million of net regulatory
liabilities, $35 million of net regulatory assets,
$32 million of net regulatory assets and
$11 million of net regulatory assets, respectively.
Target levels reflected in rates were:
Production:
Yr. 1 – $1,752 million
Yr. 2 – $1,732 million
Yr. 3 – $1,720 million
Distribution:
Yr. 1 – $6 million
Yr. 2 – $11 million
Yr. 3 – $25 million
The company reduced its regulatory liability by
$0 million in 2014 and immaterial amounts in
2015 and 2016 and no deferrals were recorded in
2017, 2018, 2019. In 2020 and 2021, the
company deferred $2 million and $1 million, as a
regulatory liability, respectively. In 2022, the
company deferred $0.1 million as a regulatory
asset.
Average rate base
Weighted average cost of capital
(after-tax)
Authorized return on common equity
Actual return on common equity (e)
Yr. 1 – $1,511 million
Yr. 2 – $1,547 million
Yr. 3 – $1,604 million
Yr. 1 – 7.10 percent
Yr. 2 – 7.13 percent
Yr. 3 – 7.21 percent
9.3 percent
Yr. 1 – 9.82 percent
Yr. 2 – 10.88 percent
Yr. 3 – 10.54 percent
Yr. 4 – 9.51 percent
Yr. 5 – 11.73 percent
Yr. 6 – 10.45 percent
Yr. 7 – 7.91 percent
Yr. 8 – 5.99 percent
Yr. 9 - 5.72 percent
138
CON EDISON ANNUAL REPORT 2022
Earnings sharing
Weather normalized earnings above an annual
earnings threshold of 9.9 percent are to be
applied to reduce regulatory assets for
environmental remediation and other costs.
In 2014, the company had no earnings above the
threshold. Actual earnings were $11.5 million and
$7.8 million above the threshold in 2015 and
2016, respectively. In 2017, actual earnings were
$8.5 million above the threshold, offset in part by
a positive adjustment related to 2016 of $4
million. In 2018, actual earnings were $16.5
million above the threshold, and an additional
$1.1 million related to 2017 was recorded. In
2019 actual earnings were $5 million above the
threshold, offset in part by an adjustment related
to 2018 of $2.3 million. In 2020, 2021 and 2022,
the company had no earnings sharing above the
threshold. Reserve adjustments of $0.4 million
and $0.2 million were recorded in 2021 related to
potential adjustment to the excess earnings
sharing amounts for 2016 and 2018, respectively.
Cost of long-term debt
Yr. 1 – 5.17 percent
Yr. 2 – 5.23 percent
Yr. 3 – 5.39 percent
Common equity ratio
48 percent
(a)
(b)
(c)
(d)
(e)
Rates determined pursuant to this rate plan continue in effect until a new rate plan is approved by the NYSPSC.
The impact of these base rate changes was deferred which resulted in an $8 million regulatory liability at December 31, 2016.
Deferrals for property taxes are limited to 90 percent of the difference from amounts reflected in rates, subject to an annual maximum
for the remaining difference of not more than a 10 basis point impact on return on common equity.
In addition, the NYSPSC staff has commenced a focused operations audit to investigate CECONY’s income tax accounting. Any
NYSPSC ordered adjustment to CECONY’s income tax accounting is expected to be refunded to or collected from customers, as
determined by the NYSPSC. CECONY’s historical inadvertent understatement of its calculation of total federal income tax expense for
ratemaking purposes has not been addressed in the current steam rate plan. See "Other Regulatory Matters," below.
Calculated in accordance with the earnings calculation method prescribed in the rate order.
CON EDISON ANNUAL REPORT 2022
139
O&R New York – Electric
Effective period (a)
Base rate changes
Amortizations to income of net
regulatory (assets) and liabilities
Other revenue sources
January 2019 – December 2021
January 2022 – December 2024
Yr. 1 – $13.4 million (b)
Yr. 2 – $8.0 million (b)
Yr. 3 – $5.8 million (b)
Yr. 1 – $4.9 million (i)
Yr. 2 – $16.2 million (i)
Yr. 3 – $23.1 million (i)
Yr. 1 – $(1.5) million (c)
Yr. 2 – $(1.5) million (c)
Yr. 3 – $(1.5) million (c)
Potential earnings adjustment mechanism
incentives for peak reduction, energy efficiency,
Distributed Energy Resources utilization and
other potential incentives of up to:
Yr. 1 - $3.6 million
Yr. 2 - $4.0 million
Yr. 3 - $4.2 million
Potential incentive if performance target related
to customer service is met: $0.5 million annually.
Yr. 1 – $11.8 million (j)
Yr. 2 – $13.5 million (j)
Yr. 3 – $15.2 million (j)
Potential earnings adjustment mechanism
incentives for energy efficiency and other potential
incentives of up to:
Yr. 1 – $3.3 million
Yr. 2 – $2.3 million
Yr. 3 – $4.0 million
In 2022, the company recorded $2.7 million, of
earnings adjustment mechanism incentives for
energy efficiency,
In 2019, 2020 and 2021, the company recorded
$2.6 million, $1.9 million and $1.8 million of
earnings adjustment mechanism incentives for
energy efficiency, respectively. In 2019 and 2020,
the company recorded $0.2 million and $0.5
million of incentives for customer service,
respectively. In 2021, the company did not record
incentives for customer service. In 2021, the
company reversed the $0.5 million of incentives
recorded in 2020 pursuant to the October 2021
Joint Proposal.
Revenue decoupling mechanisms
Continuation of reconciliation of actual to
authorized electric delivery revenues.
Continuation of reconciliation of actual to
authorized electric delivery revenues.
Recoverable energy costs
Negative revenue adjustments
Regulatory reconciliations
Net utility plant reconciliations
Average rate base
In 2019 and 2020, the company deferred $0.1
million and $6 million regulatory assets,
respectively. In 2021, $10 million was deferred as
regulatory liabilities.
Continuation of current rate recovery of
purchased power costs.
In 2022, the company deferred $6.9 million
regulatory liabilities.
Continuation of current rate recovery of
purchased power and fuel costs.
Potential charges if certain performance targets
relating to service, reliability and other matters
are not met:
Yr. 1 - $4.4 million
Yr. 2 - $4.4 million
Yr. 3 - $4.5 million
Potential charges if certain performance targets
relating to service, reliability, safety and other
matters are not met:
Yr. 1 – $4.3 million
Yr. 2 – $4.4 million
Yr. 3 – $5.1 million
In 2019,2020 and 2021, the company did not
record any negative revenue adjustments.
Reconciliation of expenses for pension and other
postretirement benefits, environmental
remediation costs, property taxes (d), energy
efficiency program (e), major storms, the impact
of new laws and certain other costs to amounts
reflected in rates (f).
In 2019, 2020 and 2021, the company deferred
$4.3 million, $30.3 million and $24 million as net
regulatory assets, respectively.
Target levels reflected in rates were:
Electric average net plant target excluding
advanced metering infrastructure (AMI):
Yr. 1 - $1,008 million
Yr. 2 - $1,032 million
Yr. 3 - $1,083 million
AMI (g):
Yr. 1 - $48 million
Yr. 2 - $58 million
Yr. 3 - $61 million
The company increased regulatory asset by an
immaterial amount in 2019, $0.4 million as a
regulatory liability in 2020 and an immaterial
amount as a regulatory liability in 2021.
Yr. 1 – $878 million
Yr. 2 – $906 million
Yr. 3 – $948 million
In 2022, the company did not record any negative
revenue adjustments.
Reconciliation of late payment charges (l) and
reconciliation of expenses for pension and other
postretirement benefits, environmental
remediation costs, property taxes (d), energy
efficiency program (k), major storms, uncollectible
expenses and certain other costs to amounts
reflected in rates.
In 2022, the company deferred $9.4 million as net
regulatory liabilities.
Target levels reflected in rates: Electric average
net plant target
Yr. 1 – $1,175 million
Yr. 2 – $1,198 million
Yr. 3 – $1,304 million
The company increased regulatory asset by an
immaterial amount in 2022.
Yr. 1 – $1,021 million
Yr. 2 – $1,044 million
Yr. 3 – $1,144 million
Yr. 1 – 6.77 percent
Yr. 2 – 6.73 percent
Yr. 3 – 6.72 percent
Weighted average cost of capital
(after-tax)
Yr. 1 – 6.97 percent
Yr. 2 – 6.96 percent
Yr. 3 – 6.96 percent
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CON EDISON ANNUAL REPORT 2022
Authorized return on common equity
9.0 percent
Actual return on common equity (h)
Earnings sharing
Yr. 1 – 9.6 percent
Yr. 2 – 8.76 percent
Yr. 3 – 9.16 percent
Most earnings above an annual earnings
threshold of 9.6 percent are to be applied to
reduce regulatory assets for environmental
remediation and other costs accumulated in the
rate year.
9.2 percent
Yr. 1 – 8.96 percent
Most earnings above an annual earnings
threshold of 9.7 percent are to be applied to
reduce regulatory assets for environmental
remediation and other costs accumulated in the
rate year.
In 2019, 2020 and 2021, earnings did not exceed
the earnings threshold.
In 2022, earnings did not exceed the earnings
threshold.
Cost of long-term debt
Yr. 1 – 5.17 percent
Yr. 2 – 5.14 percent
Yr. 3 – 5.14 percent
Common equity ratio
48 percent
Yr. 1 – 4.58 percent
Yr. 2 – 4.51 percent
Yr. 3 – 4.49 percent
48 percent
(a)
If at the end of any year, Con Edison’s investments in its non-utility businesses exceed 15 percent of Con Edison’s total consolidated
revenues, assets or cash flow, or if the ratio of holding company debt to total consolidated debt rises above 20 percent, O&R is required to
notify the NYSPSC and submit a ring-fencing plan or a demonstration why additional ring-fencing measures (see Note U) are not necessary.
(b) The electric base rate increases were implemented with increases of: Yr. 1 - $8.6 million; Yr. 2 - $12.1 million; and Yr. 3 - $12.2 million.
(c) Reflects amortization of, among other things, the company’s net benefits under the TCJA prior to January 1, 2019, amortization of net
regulatory liability for future income taxes and reduction of previously incurred regulatory assets for environmental remediation costs. Also,
for electric, reflects amortization over a six year period of previously incurred incremental major storm costs. See "Other Regulatory
Matters," below.
(d) Deferrals for property taxes are limited to 90 percent of the difference from amounts reflected in rates, subject to an annual maximum for the
remaining difference of not more than a maximum number of basis points impact on return on common equity: Yr. 1 - 10.0 basis points; Yr. 2
- 7.5 basis points; and Yr. 3 - 5.0 basis points.
(e) Energy efficiency costs are expensed as incurred. Such costs are subject to a downward-only reconciliation over the terms of the electric
(f)
and gas rate plans. The company will defer for the benefit of customers any cumulative shortfall over the terms of the electric and gas rate
plans between actual expenditures and the levels provided in rates.
In addition, the NYSPSC staff has commenced a focused operations audit to investigate O&R’s income tax accounting. Any NYSPSC
ordered adjustment to O&R’s income tax accounting is expected to be refunded to or collected from customers, as determined by the
NYSPSC. See "Other Regulatory Matters," below.
(g) Net plant reconciliation for AMI expenditures will be implemented for a single category of AMI capital expenditures that includes amounts
allocated to both electric and gas customers.
(h) Calculated in accordance with the earnings calculation method prescribed in the rate order.
(i)
The Joint Proposal recommends that these base rate changes may be implemented with increases of: Yr. 1 - $11.7 million; Yr. 2 -
$11.7 million; and Yr. 3 - $11.7 million.
(j) Reflects amortization of, among other things, previously incurred incremental deferred storm costs over a five-year period. See "Other
Regulatory Matters," below
(l)
(k) Energy efficiency costs are expensed as incurred. Such costs are subject to a cumulative reconciliation that is evenly distributed over the
term of the rate plan subject to the caps set forth in the January 2020 NYSPSC New Efficiency New York (“NENY”) order. If the NYSPSC
modifies O&R's NENY budgets during the rate term, such modifications will be reflected at the time of the cumulative reconciliations.
The rate plan includes certain COVID-19 provisions, such as: recovery of 2020 late payment charges over three years ($2.2 million);
reconciliation of late payment charges to amounts reflected in rates for years 2021 through 2024, with full recovery/refund via surcharge/sur-
credit once the annual variance equals or exceeds 5 basis points of return on equity; and reconciliation of write-offs of customer accounts
receivable balances to amounts reflected in rates from January 1, 2020 through December 31, 2024, with full recovery/refund via surcharge/
sur-credit once the annual variance equals or exceeds 5 basis points of return on equity.
CON EDISON ANNUAL REPORT 2022
141
O&R New York – Gas
Effective period (a)
Base rate changes
Amortization to income of net regulatory
(assets) and liabilities
Other revenue sources
January 2019 – December 2021
January 2022 – December 2024
Yr. 1 – $(7.5) million (b)
Yr. 2 – $3.6 million (b)
Yr. 3 – $0.7 million (b)
Yr. 1 – $1.8 million (c)
Yr. 2 – $1.8 million (c)
Yr. 3 – $1.8 million (c)
Yr. 1 – $0.7 million (i)
Yr. 2 – $7.4 million (i)
Yr. 3 – $9.9 million (i)
Yr. 1 – $0.8 million
Yr. 2 – $0.7 million
Yr. 3 – $0.3 million
Continuation of retention of annual revenues from
non-firm customers of up to $4.0 million, with
variances to be shared 80 percent by customers
and 20 percent by company.
Potential earnings adjustment mechanism
incentives of up to $0.3 million annually.
Potential incentives if performance targets related
to gas leak backlog, leak prone pipe, emergency
response, damage prevention and customer
service are met: Yr. 1 - $1.2 million; Yr. 2 - $1.3
million; and Yr. 3 - $1.3 million.
In 2019, 2020 and 2021, the company recorded
$0.5 million of earnings adjustment mechanism
incentives for energy efficiency. In 2019, 2020 and
2021, the company recorded $0.7 million, $0.3
million and $0.2 million of positive incentives,
respectively. In 2021, the company reversed $0.3
million of positive incentives recorded in 2020
pursuant to the October 2021 Joint Proposal.
Potential earnings adjustment mechanism
incentives for energy efficiency and other
potential incentives of up to:
Yr. 1 - $0.2 million
Yr. 2 - $0.2 million
Yr. 3 - $0.4 million
Potential positive rate adjustment for gas
safety and performance of up to:
Yr. 1 – $1.2 million
Yr. 2 – $1.3 million
Yr. 3 – $1.4 million
In 2022, the company recorded $0.2 million of
earnings adjustment mechanism incentives
for energy efficiency. In 2022, the company
recorded $0.2 million of positive incentives,
Revenue decoupling mechanisms
Continuation of reconciliation of actual to
authorized gas delivery revenues.
Continuation of reconciliation of actual to
authorized gas delivery revenues.
Recoverable energy costs
Negative revenue adjustments
Regulatory reconciliations
Net utility plant reconciliations
Average rate base
In 2019 and 2020, the company deferred $0.8
million and $0.5 million as regulatory assets,
respectively. In 2021, $4 million was deferred as a
regulatory liability.
Continuation of current rate recovery of purchased
gas costs.
Potential charges if performance targets relating
to service, safety and other matters are not met:
Yr. 1 - $5.5 million; Yr. 2 - $5.7 million; and Yr. 3 -
$6.0 million.
In 2019, the company recorded a $0.2 million. In
2020 and 2021, the company recorded an
immaterial amount of negative revenue
adjustments.
Reconciliation of expenses for pension and other
postretirement benefits, environmental
remediation costs, property taxes (d), energy
efficiency program (e), the impact of new laws and
certain other costs to amounts reflected in rates
(f).
In 2019 and 2020, the company deferred $6
million as net regulatory liabilities, $1.8 million as
net regulatory assets, respectively. In 2021
$8 million were deferred as regulatory assets.
Target levels reflected in rates were:
Gas average net plant target excluding AMI:
Yr. 1 - $593 million
Yr. 2 - $611 million
Yr. 3 - $632 million
AMI (g):
Yr. 1 - $20 million
Yr. 2 - $24 million
Yr. 3 - $25 million
In 2019, 2020 and 2021, the company deferred
immaterial amounts as regulatory assets.
Yr. 1 – $454 million
Yr. 2 – $476 million
Yr. 3 – $498 million
Weighted average cost of capital (after-
tax)
Yr. 1 – 6.97 percent
Yr. 2 – 6.96 percent
Yr. 3 – 6.96 percent
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CON EDISON ANNUAL REPORT 2022
In 2022, the company deferred $2.0 million as
regulatory asset
Continuation of current rate recovery of
purchased gas costs.
Potential charges if performance targets
relating to service, safety and other matters
are not met:
Yr. 1 – $6.3 million
Yr. 2 – $6.7 million
Yr. 3 – $7.3 million
In 2022, the company recorded $0.1 million of
negative revenue adjustments.
Reconciliation of late payment charges (l) and
reconciliation of expenses for pension and
other postretirement benefits, environmental
remediation costs, property taxes (j), energy
efficiency program (k), major storms,
uncollectible expenses and certain other
costs to amounts reflected in rates.
In 2022, the company deferred $3.4 million as
net regulatory liabilities.
Target levels reflected in rates: Gas average
net plant target
Yr. 1 – $720 million
Yr. 2 – $761 million
Yr. 3 – $803 million
In 2022, the company deferred immaterial
amounts as regulatory assets.
Yr. 1 – $566 million
Yr. 2 – $607 million
Yr. 3 – $694 million
Yr. 1 – 6.77 percent
Yr. 2 – 6.73 percent
Yr. 3 – 6.72 percent
Authorized return on common equity
Actual return on common equity (h)
9.0 percent
Yr. 1 – 8.90 percent
Yr. 2 – 9.58 percent
Yr. 3 – 10.11 percent
9.2 percent
Yr. 1 - 10.01 percent
Earnings sharing
Most earnings above an annual earnings
threshold of 9.6 percent are to be applied to
reduce regulatory assets for environmental
remediation and other costs accumulated in the
rate year. In 2019 and 2020, earnings did not
exceed the earnings threshold. In 2021, actual
earnings were $1.7 million above the threshold.
Most earnings above an annual earnings
threshold of 9.7 percent are to be applied to
reduce regulatory assets for environmental
remediation and other costs accumulated in
the rate year. In 2022, actual earnings were
$1.1 million above the threshold.
Cost of long-term debt
Common equity ratio
Yr. 1 – 5.17 percent
Yr. 2 – 5.14 percent
Yr. 3 – 5.14 percent
48 percent
Yr. 1 – 4.58 percent
Yr. 2 – 4.51 percent
Yr. 3 – 4.49 percent
48 percent
(a)
(j)
(k)
(l)
If at the end of any year, Con Edison’s investments in its non-utility businesses exceed 15 percent of Con Edison’s total consolidated
revenues, assets or cash flow, or if the ratio of holding company debt to total consolidated debt rises above 20 percent, O&R is required
to notify the NYSPSC and submit a ring-fencing plan or a demonstration why additional ring-fencing measures (see Note U) are not
necessary.
The gas base rate changes were implemented with changes of: Yr. 1 - $(5.9) million; Yr. 2 - $1.0 million; and Yr. 3 - $1.0 million.
(b)
(c)-(h) See footnotes (c) - (h) to the table under “O&R New York - Electric,” above.
(i)
The Joint Proposal recommends that these base rate changes may be implemented with increases of: Yr. 1 – $4.4 million; Yr. 2 -
$4.4 million; and Yr. 3 - $4.4 million.
Deferrals for property taxes are limited to 90 percent of the difference from amounts reflected in rates, subject to an annual maximum for
the remaining difference of not more than a maximum number of basis points impact on return on common equity: Yr. 1 - 10.0 basis
points; Yr. 2 - 7.5 basis points; and Yr. 3 - 5.0 basis points.
See footnote (k) to the table under "O&R New York - Electric," above.
The rate plan includes certain COVID-19 provisions, such as: recovery of 2020 late payment charges over three years ($0.6 million);
reconciliation of late payment charges to amounts reflected in rates for years 2021 through 2024, with full recovery/refund via surcharge/
sur-credit once the annual variance equals or exceeds 5 basis points of return on equity; and reconciliation of write-offs of customer
accounts receivable balances to amounts reflected in rates from January 1, 2020 through December 31, 2024, with full recovery/refund
via surcharge/sur-credit once the annual variance equals or exceeds 5 basis points of return on equity.
CON EDISON ANNUAL REPORT 2022
143
$0.2 million over three years
and $9.2 million of deferred
storm costs over a three-year
period (excluding $2.4 million
of costs for Tropical Storm
Henri which will be deferred
over a three year period in
base rates) and continuation of
$10 million over 3 years
Recovery of RECO’s
COVID-19 related
expenditures will be addressed
Current rate recovery of
purchased power costs.
Reconciliation of uncollectible
accounts, Demand Side
Management and Clean
Energy Program.
$262.8 million
7.08 percent
9.6 percent
Yr. 1 - 9.6 percent
4.74 percent
48.51 percent
Rockland Electric Company (RECO)
In December 2021, the NJBPU approved an electric rate increase, effective January 1, 2022, of $9.65 million for
RECO. The following table contains a summary of the terms of the distribution rate plans.
RECO
Effective period
Base rate changes
Amortization to income of net
regulatory (assets) and liabilities
COVID-19 costs
March 2017 – January 2020
February 2020 – December 2021
January 2022
$1.7 million
$12 million
$9.65 million
$0.2 million over three years
and continuation of $(25.6)
million of deferred storm
costs over four years which
expired on July 31, 2018 (a)
$4.8 million over four years.
Recoverable energy costs
Current rate recovery of
purchased power costs.
Current rate recovery of
purchased power costs.
Cost reconciliations
None
None
Average rate base
Weighted average cost of capital
(after-tax)
$178.7 million
7.47 percent
Authorized return on common equity 9.6 percent
Actual return on common equity
Yr. 1 – 7.5 percent
Yr. 2 – 5.7 percent
Cost of long-term debt
Common equity ratio
5.37 percent
49.7 percent
$229.9 million
7.11 percent
9.5 percent
Yr. 1 – 5.4 percent
Yr. 2 – 2.3 percent
4.88 percent
48.32 percent
(a)
against storms, the costs of which RECO, beginning in 2017, is collecting through a customer surcharge.
In January 2016, the NJBPU approved RECO’s plan to spend $15.7 million in capital over three years to harden its electric system
Effective July 2021, the NJBPU authorized a conservation incentive program for RECO, that covers all residential
and most commercial customers, under which RECO’s actual electric distribution revenues are compared with the
authorized distribution revenues and the difference accrued, with interest, for refund to, or recovery from,
customers, as applicable. The conservation incentive program is not permitted if RECO’s actual return on equity
exceeds the approved base rate filing return on equity by 50 basis points or more.
In January 2022, RECO filed a request with FERC for an increase to its annual transmission revenue requirement
from $16.9 million to $20.4 million. The revenue requirement reflects a return on common equity of 11.04 percent
and a common equity ratio of 47 percent.
In December 2022, the NJBPU authorized a $47.8 million Infrastructure Investment Program (IIP) over a five-year
period (2023 – 2027). RECO’s IIP provides accelerated infrastructure investments to enhance safety, reliability, and
resiliency.
COVID - 19 Regulatory Matters
Governors, public utility commissions and other regulatory agencies in the states in which the Utilities operate have
issued orders related to the COVID-19 pandemic that impact the Utilities as described below.
NY Regulation
In March 2020, a former New York State governor declared a State Disaster Emergency for the State of NY due to
the COVID-19 pandemic and signed the "New York State on PAUSE" executive order that temporarily closed all
non-essential businesses statewide. The former governor then lifted these closures over time and ended the
emergency declaration in June 2021. As a result of the emergency declaration, and due to economic conditions, the
NYSPSC and the Utilities have worked to mitigate the potential impact of the COVID-19 pandemic on the Utilities,
their customers and other stakeholders.
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CON EDISON ANNUAL REPORT 2022
In March 2020, the Utilities began suspending service disconnections, certain collection notices, final bill collection
agency activity, new late payment charges and certain other fees for all customers. The Utilities also began
providing payment extensions for all customers that were scheduled to be disconnected prior to the start of the
COVID-19 pandemic. In June 2020, the state of NY enacted a law prohibiting NY utilities, including CECONY and
O&R, from disconnecting residential customers, and starting in May 2021 small business customers, during the
COVID-19 state of emergency, which ended in June 2021. In addition, such prohibitions were in effect until
December 21, 2021 for residential and small business customers who experienced a change in financial
circumstances due to the COVID-19 pandemic.
In November 2021, the NYSPSC issued an order establishing a surcharge recovery mechanism for CECONY to
collect, commencing December 1, 2021 through December 31, 2022, $43 million and $7 million for electric and gas,
respectively, of late payment charges and fees that were not billed for the year ended December 31, 2020. The
company recorded such amounts as revenue for the year ended December 31, 2021, as permitted under the
accounting rules for regulated utilities, and also accrued such amounts as a current asset at December 31, 2021.
Pursuant to the November 2021 order, the company also established a recovery mechanism for CECONY to collect,
commencing January 2023 through December 2023, $19 million and $4 million for electric and gas, respectively, of
late payment charges and fees that were not billed for the year ended December 31, 2021 and the company
recorded such amounts as revenue for the year ended December 31, 2021, as permitted under the accounting rules
for regulated utilities, and also accrued such amounts as a current asset at December 31, 2021. In addition,
pursuant to the November 2021 order, CECONY established a reserve of $7 million toward addressing customer
arrearages for the year ended December 31, 2021 that, pursuant to a June 2022 NYSPSC order discussed below,
was used to fund a portion of the COVID-19 arrears assistance program for low-income customers. The order also
established a surcharge recovery or surcredit mechanism for any late payment charges and fee deferrals, subject to
offsetting related savings resulting from the COVID-19 pandemic, for 2022 starting in January 2024 over a twelve-
month period. CECONY resumed late payment charges for commercial and residential customers who have not
experienced a change in financial circumstances due to the COVID-19 pandemic on September 3, 2021 and
October 1, 2021, respectively. Pursuant to the October 2021 joint proposal for new electric and gas rates for O&R
that was approved by the NYSPSC in April 2022, O&R recorded late payment charges and fees that were not billed
for the years ended December 31, 2020 and December 31, 2021 of $1.7 million and $2.4 million, respectively, as
revenue for the year ended December 31, 2021, as permitted under the accounting rules for regulated utilities, and
also accrued such amounts as a current asset at December 31, 2021. See “Rate Plans,” above. O&R resumed late
payment charges for commercial and residential customers who have not experienced a change in financial
circumstances due to the COVID-19 pandemic on October 1, 2021.
The Utilities’ NY rate plans allow them to defer costs resulting from a change in legislation, regulation and related
actions that have taken effect during the term of the rate plans once the costs exceed a specified threshold. The
total reserve increases to the allowance for uncollectible accounts from January 1, 2020 through December 31,
2022 reflecting the impact of the COVID-19 pandemic for CECONY electric and gas operations and O&R electric
and gas operations were $249 million and $3 million, respectively, and were deferred pursuant to the legislative,
regulatory and related actions provisions of the rate plans as a result of the New York State on PAUSE and related
executive orders, that have since been lifted, as described above. The Utilities’ NY rate plans also provide for an
allowance for write-offs of customer accounts receivable balances. The above amounts deferred pursuant to the
legislative, regulatory and related actions provisions were reduced by the amount that the actual write-offs of
customer accounts receivable balances were below the allowance reflected in rates which differences were
$3 million and immaterial for CECONY and O&R, respectively, from March 1, 2020 through December 31, 2022.
In June 2020, the NYSPSC directed CECONY to implement a summer cooling credit program to help mitigate the
cost of staying home and operating air conditioning for health-vulnerable low-income customers due to the limited
availability of public cooling facilities as a result of the COVID-19 social distancing measures. The $63.4 million cost
of the program is being recovered over a five-year period that began January 2021.
In April 2021, NY passed a law that created a program that allows eligible residential renters in NY who require
assistance with rent and utility bills to have up to twelve months of electric and gas utility bill arrears forgiven,
provided that such arrears were accrued on or after March 13, 2020. The program is administered by the State
Office of Temporary and Disability Assistance (OTDA) in coordination with the NYSDPS (the OTDA Program). Under
the OTDA Program, CECONY and O&R qualify for a refundable tax credit for NY gross-receipts tax equal to the
amount of arrears waived by the Utilities in the year that the arrears are waived and certified by the NYSPSC. OTDA
may also use the program funds to provide additional Home Energy Assistance Program payments to the Utilities
on behalf of low-income customers.
CON EDISON ANNUAL REPORT 2022
145
In April 2022, NY approved the 2022-2023 state budget, which included $250 million for addressing statewide
residential utility customers' arrears balances accrued from March 7, 2020 through March 1, 2022. In June 2022, the
NYSPSC issued an order implementing a Phase 1 COVID-19 arrears assistance program that provides credits
towards reducing the arrears balances of low-income electric and gas customers of CECONY and O&R. At the time
the order was issued, the Utilities’ eligible arrears balances were estimated to be $340 million, comprised of: (1)
$164.5 million and $1.6 million of the funding allocated pursuant to the NY budget to CECONY and O&R,
respectively, and (2) a surcharge mechanism for recovery of the remaining eligible credit amounts over a four- year
period commencing after credits are issued for CECONY and over a one year period commencing after credits are
issued for O&R. Pursuant to the order, CECONY and O&R agreed not to seek recovery of incremental financing
costs incurred associated with low-income customers' arrears from March 2020 through March 2022 of $11 million,
most of which is attributable to CECONY, in addition to the $7 million reserve established by CECONY for the year
ended December 31, 2021, as described above. The amounts available to credit the arrears balances of low-
income CECONY and O&R customers pursuant to the June 2022 order may be reduced by amounts credited
pursuant to the OTDA Program.
For the year ended December 31, 2022, CECONY and O&R issued total credits of $359.9 million and $6.1 million,
respectively, towards reducing customers’ accounts receivable balances. For the year ended December 31, 2022,
the total credits for CECONY were comprised of: $164.5 million pursuant to the NY funding; $108.4 million that will
be recovered via a surcharge mechanism that began September 1, 2022, as described above; the $7 million
reserve for CECONY described above; and $80.0 million, in qualified tax credits and payments pursuant to the
OTDA Program described above. For the year ended December 31, 2022, the total credits for O&R were comprised
of: $1.6 million pursuant to the NY funding; $3.2 million that will be recovered via a surcharge mechanism that
began September 1, 2022, as described above; and $1.3 million, in qualified tax credits and payments pursuant to
the OTDA Program described above.
In January 2023, the NYSPSC issued an order implementing a Phase 2 COVID-19 arrears assistance program that
provides credits towards reducing the arrears balances of residential and small commercial electric and gas
customers of CECONY and O&R. At the time the order was issued, CECONY’s and O&R’s eligible arrears balances
were estimated to be $388.7 million and $2.9 million, respectively. The order authorizes a surcharge mechanism for
recovery of the eligible credit amounts over a ten-year period commencing after credits are issued for CECONY and
over a one-year period commencing after credits are issued for O&R. Pursuant to the order, CECONY and O&R
agreed not to seek recovery of incremental financing costs incurred associated with arrears from March 2020
through December 2022 estimated to be $46 million, most of which is attributable to CECONY. To facilitate
implementation, CECONY and O&R agreed to suspend residential terminations for non-payment through March 1,
2023 or 30 days after credits have been applied, whichever is later.
The Utilities’ rate plans have revenue decoupling mechanisms in their NY electric and gas businesses that largely
reconcile actual energy delivery revenues to the authorized delivery revenues approved by the NYSPSC per month
and reconcile the deferred balances semi-annually under CECONY's electric rate plan (January through June and
July through December, respectively) and annually under CECONY's gas rate plan and O&R's NY electric and gas
rate plans (January through December). Differences are accrued with interest each month for CECONY's and
O&R's NY electric customers and after the annual deferral period ends for CECONY's and O&R's NY gas
customers for refund to, or recovery from customers, as applicable. Generally, the refund to or recovery from
customers begins August and February of each year over an ensuing six-month period for CECONY's electric
customers and February of each year over an ensuing twelve-month period for CECONY's gas and O&R's NY
electric and gas customers.
NJ Regulation
In March 2020, NJ Governor Murphy declared a Public Health Emergency and State of Emergency for the State of
NJ. In June 2021, the Governor ended the emergency declaration. As a result of the emergency declaration, and
due to economic conditions, the NJBPU and RECO have worked to mitigate the potential impact of the COVID-19
pandemic on RECO, its customers and other stakeholders. In March 2020, RECO began suspending late payment
charges, terminations for non-payment, and no access fees during the COVID-19 pandemic. The suspension of
these fees continued through July 31, 2021 and were not material.
In July 2020, the NJBPU authorized RECO and other NJ utilities to create a COVID-19-related regulatory asset by
deferring prudently incurred incremental costs related to the COVID-19 pandemic beginning on March 9, 2020, and
has extended such deferrals through March 15, 2023. RECO is required to file its verified COVID-19 cost recovery
petition by no later than May 15, 2023. RECO deferred net incremental COVID-19 related costs of $0.5 million
through December 31, 2022.
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CON EDISON ANNUAL REPORT 2022
Gas Safety
In April 2020, the NYSPSC issued an order that extended the deadlines to complete certain gas inspections by all
NY gas utilities, including CECONY and O&R, from April 1, 2020 to August 1, 2020. The deadlines were
subsequently extended to September 2, 2020 and June 1, 2022. CECONY and O&R have taken all reasonable
measures to complete such inspections. As of June 1, 2022, O&R completed all of its required inspections and
CECONY substantially completed its required inspections. CECONY is unable to estimate the amount or range of
its possible loss, if any, related to this matter. At December 31, 2022, CECONY had not accrued a liability related to
this matter.
Other Regulatory Matters
In August 2018, the NYSPSC ordered CECONY to begin on January 1, 2019 to credit the company's electric and
gas customers, and to begin on October 1, 2018 to credit its steam customers, with the net benefits of the federal
Tax Cuts and Jobs Act of 2017 (TCJA) as measured based on amounts reflected in its rate plans prior to the
enactment of the TCJA in December 2017. The net benefits include the revenue requirement impact of the reduction
in the corporate federal income tax rate to 21 percent, the elimination for utilities of bonus depreciation and the
amortization of excess deferred federal income taxes.
CECONY, under its electric rate plan that was approved in January 2020, is amortizing its TCJA net benefits prior to
January 1, 2019 allocable to its electric customers ($377 million) over a three-year period, the IRS “protected”
portion of its net regulatory liability for future income taxes related to certain accelerated tax depreciation benefits
allocable to its electric customers ($1,663 million) over the remaining lives of the related assets and the remainder,
or “unprotected” portion of the net regulatory liability allocable to its electric customers ($784 million) over a five-year
period. CECONY, under its gas rate plan that was approved in January 2020, amortized TCJA net benefits prior to
January 1, 2019 allocable to its gas customers ($63 million) over a two-year period. The protected portion of its net
regulatory liability for future income taxes allocable to its gas customers ($725 million) is being amortized over the
remaining lives of the related assets and the unprotected portion of the net regulatory liability allocable to its gas
customers ($107 million) over a five-year period.
CECONY’s net regulatory liability for future income taxes, including both the protected and unprotected portions,
allocable to the company’s steam customers ($185 million) is being amortized over the remaining lives of the related
assets (with the amortization period for the unprotected portion subject to review in its next steam rate proceeding).
O&R, under its current electric and gas rate plans, has reflected its TCJA net benefits in its electric and gas rates
beginning as of January 1, 2019. Under the rate plans, O&R amortized its net benefits prior to January 1, 2019
($22 million) over a three-year period. The protected portion of its net regulatory liability for future income taxes
($123 million) is being amortized over the remaining lives of the related assets. See "Rate Plans" above. Pursuant
to the October 2021 Joint Proposal, O&R will amortize the remaining unprotected portion of its net regulatory liability
for future income taxes ($34 million) over a six-year period that began January 1, 2022.
In January 2018, the NYSPSC issued an order initiating a focused operations audit of the Utilities’ financial
accounting for income taxes. The audit is investigating the Utilities’ inadvertent understatement of a portion, the
amount of which may be material, of their calculation of total federal income tax expense for ratemaking purposes.
The understatement was related to the calculation of plant retirement-related cost of removal. As a result of such
understatement, the Utilities accumulated significant income tax regulatory assets that were not reflected in O&R’s
rate plans prior to 2014, CECONY’s electric and gas rate plans prior to 2015 and 2016, respectively, and is currently
not reflected in CECONY’s steam rate plan but a prospective correction was proposed in CECONY's November
2022 steam rate filing. This understatement of historical income tax expense materially reduced the amount of
revenue collected from the Utilities' customers in the past. As part of the audit, the Utilities plan to pursue a private
letter ruling from the Internal Revenue Service (IRS) that is expected to confirm, among other things, that in order to
comply with IRS normalization rules, such understatement may not be corrected through a write-down of a portion
of the regulatory asset and must be corrected through an increase in future years’ revenue requirements. The
regulatory asset ($1,150 million and $22 million for CECONY and O&R, respectively, as of December 31, 2022 and
$1,176 million and $26 million for CECONY and O&R, respectively, as of December 31, 2021 and which is not
earning a return) is netted against the future income tax regulatory liability on the Companies’ consolidated balance
sheet. The Utilities are unable to estimate the amount or range of their possible loss, if any, related to this matter. At
December 31, 2022, the Utilities had not accrued a liability related to this matter.
In July 2021, the NYSPSC approved a settlement agreement among CECONY, O&R and the NYSDPS that fully
resolves all issues and allegations that have been raised or could have been raised by the NYSPSC against
CECONY and O&R with respect to: (1) the July 2018 rupture of a CECONY steam main located on Fifth Avenue
and 21st Street in Manhattan (the “2018 Steam Incident”); (2) the July 2019 electric service interruptions to
CON EDISON ANNUAL REPORT 2022
147
approximately 72,000 CECONY customers on the west side of Manhattan and to approximately 30,000 CECONY
customers primarily in the Flatbush area of Brooklyn (the “2019 Manhattan and Brooklyn Outages”); (3) the August
2020 electric service interruptions to approximately 330,000 CECONY customers and approximately 200,000 O&R
customers following Tropical Storm Isaias (the “Tropical Storm Isaias Outages”) and (4) the August 2020 electric
service interruptions to approximately 190,000 customers resulting from faults at CECONY’s Rainey substation
following Tropical Storm Isaias (the “Rainey Outages”). Pursuant to the settlement agreement, CECONY and O&R
agreed to a total settlement amount of $75.1 million and $7.0 million, respectively. CECONY and O&R agreed to
forgo recovery from customers of $25 million and $2.5 million, respectively, associated with the return on existing
storm hardening assets beginning with the next rate plan for each utility (over a period of 35 years). CECONY and
O&R also agreed to incur ongoing operations and maintenance costs of up to $15.8 million and $2.9 million,
respectively, for, among other things, costs to maintain a certain level of contractor and vehicle storm emergency
support and storm preparation audits. For CECONY, the settlement agreement included previously incurred or
accrued costs of $34.3 million, including negative revenue adjustments of $5 million for the Rainey Outages and
$15 million for the 2019 Manhattan and Brooklyn Outages and $14.3 million in costs to reimburse customers for
food and medicine spoilage and other previously incurred expenses related to Tropical Storm Isaias and the 2018
Steam Incident. For O&R, the settlement agreement included previously incurred costs of $1.6 million to reimburse
customers for food and medicine spoilage and other expenses related to the Tropical Storm Isaias Outages.
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CON EDISON ANNUAL REPORT 2022
Regulatory Assets and Liabilities
Regulatory assets and liabilities at December 31, 2022 and 2021 were comprised of the following items:
Con Edison
CECONY
(Millions of Dollars)
Regulatory assets
Environmental remediation costs
System peak reduction and energy efficiency programs (h)
Revenue taxes
Pension and other postretirement benefits deferrals
COVID - 19 pandemic deferrals (f)
Deferred storm costs (c)
Property tax reconciliation (g)
COVID - 19 arrears relief deferrals programs
Gas service line deferred costs
MTA power reliability deferral (b)
Unrecognized pension and other postretirement costs (a)
Brooklyn Queens demand management program
Deferred derivative losses - long term
Electric vehicle make ready (j)
Municipal infrastructure support costs
Meadowlands heater odorization project
Non-wire alternative projects
Legacy meters
Preferred stock redemption
Unamortized loss on reacquired debt
Recoverable Demonstration project costs
Gate station upgrade project
Other
Regulatory assets – noncurrent
Deferred derivative losses
Recoverable energy costs
Regulatory assets – current
Total Regulatory Assets
Regulatory liabilities
Future income tax*
Unrecognized pension and other postretirement costs
Allowance for cost of removal less salvage (i)
Net unbilled revenue deferrals
Deferred derivative gains - long term
Pension and other postretirement benefit deferrals
2022 late payment charge deferral
System benefit charge carrying charge
Net proceeds from sale of property
Sales and use tax refunds
Property tax refunds
BQDM and Demonstration project reconciliations
Earnings sharing - electric, gas and steam
COVID - 19 pandemic uncollectible reconciliation deferral
Workers’ compensation
Settlement of prudence proceeding (d)
Energy efficiency portfolio standard unencumbered funds
Settlement of gas proceedings (e)
Other
Regulatory liabilities – noncurrent
Deferred derivative gains - short term
Refundable energy costs
Revenue decoupling mechanism
Regulatory liabilities—current
Total Regulatory Liabilities
2022
$991
783
436
279
292
270
121
104
99
92
78
33
31
33
29
27
22
20
19
11
17
14
173
3,974
184
121
305
2021
$938
285
395
496
282
276
202
—
100
140
128
36
51
8
44
29
23
2
20
16
16
14
138
3,639
141
65
206
2022
$906
780
417
240
288
173
121
101
99
92
78
33
26
30
29
27
22
—
19
10
16
14
148
3,669
178
108
286
2021
$860
284
378
435
277
158
202
—
100
140
110
36
45
7
44
29
23
—
20
14
15
14
125
3,316
133
55
188
$4,279
$3,845
$3,955
$3,504
$1,753
1,638
1,315
204
145
144
127
73
69
37
35
23
13
12
11
10
5
—
413
6,027
311
34
29
374
$1,984
32
1,199
209
61
102
—
70
103
17
35
25
13
—
8
6
15
12
490
4,381
142
32
11
185
$1,616
1,536
1,137
204
130
98
123
69
69
36
35
21
10
12
11
10
7
—
357
5,481
287
—
21
308
$1,840
—
1,033
209
55
55
—
63
103
16
35
22
10
—
8
6
19
12
435
3,921
132
2
—
134
$6,401
$4,566
$5,789
$4,055
* See "Federal Income Tax" in Note A, "Other Regulatory Matters," above, and Note L.
CON EDISON ANNUAL REPORT 2022
149
(a) Unrecognized pension and other postretirement costs represent the net regulatory asset associated with the
accounting rules for retirement benefits. See "Pension and Other Postretirement Benefits" in Note A.
(b) MTA power reliability deferral represents CECONY’s costs in excess of those reflected in its prior electric rate
plan to take certain actions relating to the electrical equipment that serves the Metropolitan Transportation Authority
(MTA) subway system. The company is recovering this regulatory asset pursuant to its current electric rate plan.
See footnote (d) to the CECONY - Electric table under “Rate Plans,” above.
(c) Deferred storm costs represent response and restoration costs, other than capital investments, in connection
with Tropical Storm Isaias and other major storms that were deferred by the Utilities.
(d) Settlement of prudence proceeding represents the remaining amount to be credited to customers pursuant to a
Joint Proposal, approved by the NYSPSC in April 2016, with respect to the prudence of certain CECONY
expenditures and related matters.
(e) Settlement of gas proceedings represents the amount to be credited to customers pursuant to a settlement
agreement approved by the NYSPSC in February 2017 related to CECONY’s practices of qualifying persons to
perform plastic fusions on gas facilities and alleged violations of gas safety violations identified by the NYSPSC staff
in its investigation of a March 2014 Manhattan explosion and fire (see Note H).
(f) COVID - 19 Deferrals represents both the amount to be collected from customers related to the Emergency
Summer Cooling Credits program for CECONY and amounts related to the increase in the allowance for
uncollectible accounts resulting from the COVID-19 pandemic and New York on PAUSE and related executive
orders, for electric and gas operations for CECONY and electric operations for O&R.
(g) Property tax reconciliation represents the amount deferred between actual property taxes incurred and the level
included in rates subject to the provisions of the respective rate plans.
(h) System Peak Reduction and Energy Efficiency Programs represent programs designed to increase energy
efficiency achievements through a combination of responding to locational needs, bundling offerings, leveraging
market-based approaches through market solicitations, time-variant pricing and other market transformation efforts.
(i) Allowance for cost of removal less salvage represents cash previously collected from customers to fund future
anticipated removal expenditures.
(j) Supports the development of electric infrastructure and equipment necessary to accommodate an anticipated
increase in the deployment of electric vehicles within New York State.
The NYSPSC has authorized CECONY to accrue unbilled electric, gas and steam revenues. CECONY has deferred
the net margin on the unbilled revenues for the future benefit of customers by recording a regulatory liability of $204
million and $209 million at December 31, 2022 and 2021, respectively, for the difference between the unbilled
revenues and energy cost liabilities.
In general, the Utilities receive or are being credited with a return at the Other Customer-Provided Capital rate for
regulatory assets that have not been included in rate base, and receive or are being credited with a return at the
pre-tax weighted average cost of capital once the asset is included in rate base. Similarly, the Utilities pay to or
credit customers with a return at the Other Customer-Provided Capital rate for regulatory liabilities that have not
been included in rate base, and pay to or credit customers with a return at the pre-tax weighted average cost of
capital once the liability is included in rate base. The Other Customer-Provided Capital rate for the years ended
December 31, 2022 and 2021 was 1.75 percent and 1.80 percent, respectively.
In general, the Utilities are receiving or being credited with a return on their regulatory assets for which a cash
outflow has been made ($2,304 million and $1,962 million for Con Edison, and $2,097 million and $1,751 million for
CECONY at December 31, 2022 and 2021, respectively). Regulatory assets of RECO for which a cash outflow has
been made ($21 million and $25 million at December 31, 2022 and 2021, respectively) are not receiving or being
credited with a return. RECO recovers regulatory assets over a period of up to four years or until they are
addressed in its next base rate case in accordance with the rate provisions approved by the NJBPU. Regulatory
liabilities are treated in a consistent manner.
Regulatory assets that represent future financial obligations and were deferred in accordance with the Utilities’ rate
plans or orders issued by state regulators do not earn a return until such time as a cash outlay has been made.
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CON EDISON ANNUAL REPORT 2022
Regulatory liabilities are treated in a consistent manner. At December 31, 2022 and 2021, regulatory assets for Con
Edison and CECONY that did not earn a return consisted of the following items:
Regulatory Assets Not Earning a Return*
(Millions of Dollars)
Unrecognized pension and other postretirement costs
Environmental remediation costs
Revenue taxes
Deferred derivative losses - long term
COVID-19 deferral for uncollectible accounts receivable
Other
Deferred derivative losses - current
Total
Con Edison
CECONY
2022
$78
987
414
31
253
28
184
$1,975
2021
$128
928
375
51
236
24
141
$1,883
2022
$78
903
397
26
249
27
178
$1,858
2021
$110
850
359
45
231
24
134
$1,753
*This table presents regulatory assets not earning a return for which no cash outlay has been made.
The recovery periods for regulatory assets for which a cash outflow has not been made and that do not earn a
return have not yet been determined, except as noted below, and are expected to be determined pursuant to the
Utilities’ future rate plans to be filed or orders issued by the state regulators in connection therewith.
The Utilities recover unrecognized pension and other postretirement costs over 10 years, and the portion of
investment gains or losses recognized in expense over 15 years, pursuant to NYSPSC policy.
The deferral for revenue taxes represents the New York State metropolitan transportation business tax surcharge on
the cumulative temporary differences between the book and tax basis of assets and liabilities of the Utilities, as well
as the difference between taxes collected and paid by the Utilities to fund mass transportation. The Utilities recover
the majority of the revenue taxes over the remaining book lives of the electric and gas plant assets, as well as the
steam plant assets for CECONY.
The Utilities recover deferred derivative losses – current within one year, and noncurrent generally within
three years.
CON EDISON ANNUAL REPORT 2022
151
Note C – Capitalization
Common Stock
Con Edison is authorized to issue 500,000,000 shares of its common stock and CECONY is authorized to issue
340,000,000 of its common stock. At December 31, 2022 and 2021, 354,962,058 and 353,983,712 shares,
respectively, of Con Edison common stock were outstanding. At December 31, 2022 and 2021, 235,488,094 million
shares of CECONY common stock were outstanding, all of which were owned by Con Edison. At December 31,
2022 and 2021, Con Edison had 23,210,700 treasury shares, including 21,976,200 shares of Con Edison stock that
CECONY purchased prior to 2001 in connection with Con Edison’s stock repurchase plan. CECONY presents in the
financial statements the cost of the Con Edison stock it owns as a reduction of common shareholder’s equity.
Capitalization of Con Edison
Con Edison's capitalization shown on its Consolidated Statement of Capitalization includes its outstanding common
stock and long-term debt and the outstanding long-term debt of the Utilities and the Clean Energy Businesses.
Dividends
In accordance with NYSPSC requirements, the dividends that the Utilities generally pay are limited to not more than
100 percent of their respective income available for dividends calculated on a two–year rolling average basis. See
Note U. Excluded from the calculation of “income available for dividends” are non-cash charges to income resulting
from accounting changes or charges to income resulting from significant unanticipated events. The restriction also
does not apply to dividends paid in order to transfer to Con Edison proceeds from major transactions, such as asset
sales, or to dividends reducing each utility subsidiary’s equity ratio to a level appropriate to its business risk.
Long-term Debt
Long-term debt maturing in the period 2023-2027 is as follows:
(Millions of Dollars)
Con Edison (a)
CECONY
2023
2024
2025
2026
2027
$650
250
—
250
430
$—
250
—
250
350
(a)
Amounts shown exclude the debt of the Clean Energy Businesses, which were classified as held for sale as of December 31, 2022 and are
shown under "Project Debt Held for Sale" on Con Edison's Consolidated Statement of Capitalization. See "Assets and Liabilities Held for
Sale" in Note A and Note X for additional information.
CECONY has issued $450 million of tax–exempt debt through the New York State Energy Research and
Development Authority (NYSERDA) that currently bears interest at a rate determined weekly and is subject to
tender by bondholders for purchase by the company.
The carrying amounts and fair values of long-term debt at December 31, 2022 and 2021 are:
(Millions of Dollars)
Long-Term Debt (including current portion) (a)
Con Edison
CECONY
2022
2021
Carrying
Amount
Fair
Value
$20,796 (b)
$18,234 (b)
19,080
16,699
Carrying
Amount
$23,044
18,382
Fair
Value
$26,287
21,382
(a) Amounts shown are net of unamortized debt expense and unamortized debt discount of $202 million and $195 million for Con Edison and
CECONY, respectively, as of December 31, 2022 and $226 million and $193 million for Con Edison and CECONY, respectively, as of
December 31, 2021.
(b) Amounts shown exclude the debt of the Clean Energy Businesses, which were classified as held for sale as of December 31, 2022. See
"Assets and Liabilities Held for Sale" in Note A, and Note X for additional information. The carrying value and fair value of the Clean
Energy Businesses’ long-term debt, including the current portion, as of December 31, 2022 was $2,645 million and $2,489 million,
respectively.
The fair values of the Companies' long-term debt have been estimated primarily using available market information
and at December 31, 2022 are classified as Level 2 liabilities (see Note R).
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CON EDISON ANNUAL REPORT 2022
Significant Debt Covenants
The significant debt covenants under the financing arrangements for the Companies' debentures include obligations
to pay principal and interest when due and covenants not to consolidate with or merge into any other entity unless
certain conditions are met. The Companies' debentures have no cross default provisions. The tax–exempt financing
arrangements of CECONY are subject to covenants for the debentures discussed above and the covenants
discussed below. The Companies were in compliance with their significant debt covenants at December 31, 2022.
The tax-exempt financing arrangements involved the issuance of uncollateralized promissory notes of CECONY to
NYSERDA in exchange for the net proceeds of a like amount of tax–exempt bonds with substantially the same
terms sold to the public by NYSERDA. The tax-exempt financing arrangements include covenants with respect to
the tax–exempt status of the financing, including covenants with respect to the use of the facilities financed. The
arrangements include provisions for the maintenance of liquidity and credit facilities, the failure to comply with which
would, except as otherwise provided, constitute an event of default for the debt to which such provisions applied.
The failure to comply with debt covenants would, except as otherwise provided, constitute an event of default for the
debt to which such provisions applied. If an event of default were to occur, the principal and accrued interest on the
debt to which such event of default applied and, in the case of the Con Edison notes, a make-whole premium might
and, in the case of certain events of default would, become due and payable immediately.
The liquidity and credit facilities currently in effect for the tax–exempt financing include covenants that the ratio of
debt to total capital of CECONY will not at any time exceed 0.65 to 1 and that, subject to certain exceptions,
CECONY will not mortgage, lien, pledge or otherwise encumber its assets. Certain of the facilities also include as
events of default, defaults in payments of other debt obligations in excess of specified levels ($150 million or
$100 million, depending on the facility).
Note D – Short-Term Borrowing
In December 2016, Con Edison and the Utilities entered into a credit agreement (Credit Agreement), under which
banks are committed to provide loans and letters of credit on a revolving credit basis. The Credit Agreement, as
amended in 2019, expires in December 2023. There was a maximum of $2,250 million of credit available through
December 2022 and $2,200 million of credit available from then through December 2023. The full amount is
available to CECONY and $1,000 million (subject to increase up to $1,500 million) is available to Con Edison,
including up to $1,200 million of letters of credit. The Credit Agreement supports the Companies’ commercial paper
programs. The Companies have not borrowed under the Credit Agreement. In March 2022, CECONY entered into a
364-Day Revolving Credit Agreement (the CECONY Credit Agreement) under which banks are committed to
provide loans up to $750 million on a revolving credit basis. The CECONY Credit Agreement expires on March 30,
2023 and supports CECONY’s commercial paper program. CECONY has not borrowed under the CECONY Credit
Agreement. At December 31, 2022, Con Edison had $2,640 million of commercial paper outstanding, of which
$2,300 million was outstanding under CECONY’s program. The weighted average interest rate at December 31,
2022 was 4.8 percent for both Con Edison and CECONY. At December 31, 2021, Con Edison had $1,488 million of
commercial paper outstanding of which $1,361 million was outstanding under CECONY’s program. The weighted
average interest rate at December 31, 2021 was 0.3 percent for both Con Edison and CECONY.
At December 31, 2022 and 2021, no loans were outstanding under the Credit Agreement or the CECONY Credit
Agreement. An immaterial amount of letters of credit were outstanding under the Credit Agreement as of
December 31, 2022 and 2021.
The banks’ commitments under the Credit Agreement and the CECONY Credit Agreement are subject to certain
conditions, including that there be no event of default. The commitments are not subject to maintenance of credit
rating levels or the absence of a material adverse change. Upon a change of control of, or upon an event of default
by one of the Companies under the Credit Agreement or by CECONY under the CECONY Credit Agreement, the
banks may terminate their commitments with respect to that company, declare any amounts owed by that company
under the Credit Agreement or the CECONY Credit Agreement, respectively, immediately due and payable and for
the Credit Agreement, require that company to provide cash collateral relating to the letters of credit issued for it
under the Credit Agreement. Events of default for a company include that company exceeding at any time of a ratio
of consolidated debt to consolidated total capital of 0.65 to 1 (at December 31, 2022 this ratio was 0.54 to 1 for
Con Edison and 0.56 to 1 for CECONY); that company having liens on its assets in an aggregate amount exceeding
five percent of its consolidated total capital, subject to certain exceptions; that company or any of its material
subsidiaries failing to make one or more payments in respect of material financial obligations (in excess of an
aggregate $150 million of debt or derivative obligations other than non-recourse debt) of that company; the
CON EDISON ANNUAL REPORT 2022
153
occurrence of an event or condition which results in the acceleration of the maturity of any material debt (in excess
of an aggregate $150 million of debt other than non-recourse debt) of that company or enables the holders of such
debt to accelerate the maturity thereof; and other customary events of default. Interest and fees charged for the
revolving credit facilities and any loans made or letters of credit issued under the Credit Agreement reflect the
Companies’ respective credit ratings. The Companies were in compliance with their significant debt covenants at
December 31, 2022.
In June 2022 and January 2023, Con Edison borrowed $400 million and $200 million, respectively, at a variable rate
under a 364-Day Senior Unsecured Term Loan Credit Agreement entered into by the company in June 2022, as
amended in November 2022 (the June 2022 Term Loan Credit Agreement). The interest rate at December 31, 2022
was 4.94 percent. Upon a change of control of, or upon an event of default by Con Edison, the bank may declare
the loans, accrued interest and any other amounts due by Con Edison immediately due and payable. Events of
default include Con Edison exceeding at any time a ratio of consolidated debt to consolidated total capital of 0.65 to
1; Con Edison or its subsidiaries having liens on its or their assets in an aggregate amount exceeding 5.0 percent of
Con Edison’s consolidated total capital, subject to certain exceptions; Con Edison or its material subsidiaries failing
to make one or more payments in respect of material financial obligations (in excess of an aggregate $150 million of
debt or derivative obligations other than non-recourse debt); the occurrence of an event or condition which results in
the acceleration of the maturity of any material debt (in excess of an aggregate $150 million of debt other than non-
recourse debt) or enables the holders of such debt to accelerate the maturity thereof; and other customary events of
default. Subject to certain exceptions, the term loans issued under the June 2022 Term Loan Credit Agreement are
subject to mandatory termination and prepayment with the net cash proceeds of certain equity issuances or asset
sales by Con Edison. The term loans mature in June 2023.
In August 2022, the Clean Energy Businesses entered into and borrowed $150 million at a variable rate under a
364-Day Senior Unsecured Term Loan Credit Agreement, which is guaranteed by Con Edison (see Note H) and
includes customary terms and conditions. The interest rate at December 31, 2022 was 5.06 percent. Upon a change
of control of the Clean Energy Businesses, the bank may declare the loan, accrued interest and any other amounts
due by the Clean Energy Businesses immediately due and payable if the bank does not consent to a guarantee
from the successor company, which consent may not be unreasonably withheld. Upon an event of default of the
Clean Energy Businesses, the bank may declare the loan, accrued interest and any other amounts due by the
Clean Energy Businesses immediately due and payable. This loan is classified within liabilities held for sale on
Con Edison's balance sheet as of December 31, 2022. See "Assets and Liabilities Held for Sale" in Note A and Note
X for additional information.
See Note U for information about short-term borrowing between related parties.
Note E – Pension Benefits
Con Edison maintains a tax-qualified, non-contributory pension plan that covers substantially all employees of
CECONY, O&R and Con Edison Transmission and certain employees of the Clean Energy Businesses. The plan is
designed to comply with the Internal Revenue Code and the Employee Retirement Income Security Act of 1974.
Con Edison also maintains additional non–qualified supplemental pension plans.
Total Periodic Benefit Cost
The components of the Companies’ total periodic benefit costs for 2022, 2021 and 2020 were as follows:
(Millions of Dollars)
Service cost – including administrative expenses
Interest cost on projected benefit obligation
Expected return on plan assets
Recognition of net actuarial loss
Recognition of prior service credit
TOTAL PERIODIC BENEFIT COST
Cost capitalized
Reconciliation to rate level
Total expense recognized
154
CON EDISON ANNUAL REPORT 2022
2022
$287
505
Con Edison
2021
$343
471
2020
$293
549
2022
$270
475
CECONY
2021
$321
443
(1,168)
(1,096)
(1,034)
(1,109)
(1,040)
377
(16)
$(15)
(137)
259
$107
787
(17)
$488
(154)
(226)
$108
699
(16)
$491
(130)
(250)
$111
358
(21)
$(27)
(129)
245
$89
746
(19)
$451
(146)
(216)
$89
2020
$274
515
(980)
661
(19)
$451
(123)
(239)
$89
Accounting rules require that components of net periodic benefit cost other than service cost be presented outside
of operating income on consolidated income statements, and that only the service cost component is eligible for
capitalization. Accordingly, the service cost components are included in the line "Other operations and maintenance"
and the non-service cost components are included in the line “Other deductions” in the Companies' consolidated
income statements. The rules also require disclosure of the weighted-average interest crediting rate used for cash
balance plans for all periods presented, and a narrative description of significant changes in the benefit obligation
which are included below and, as applicable, in Note F.
Funded Status
The funded status at December 31, 2022, 2021 and 2020 was as follows:
(Millions of Dollars)
2022
2021
2020
2022
2021
2020
Con Edison
CECONY
CHANGE IN PROJECTED BENEFIT OBLIGATION
Projected benefit obligation at beginning of year
$17,357
$18,965
$16,792
$16,341
$17,821
$15,750
Service cost – excluding administrative expenses
Interest cost on projected benefit obligation
Net actuarial loss/(gain)
Benefits paid
283
505
(5,102)
(930)
337
471
(1,547)
(869)
288
549
2,281
(945)
266
475
(4,845)
(842)
317
443
(1,441)
(799)
269
515
2,154
(867)
PROJECTED BENEFIT OBLIGATION AT END OF YEAR
$12,113
$17,357
$18,965
$11,395
$16,341
$17,821
CHANGE IN PLAN ASSETS
Fair value of plan assets at beginning of year
Actual return on plan assets
Employer contributions
Benefits paid
Administrative expenses
FAIR VALUE OF PLAN ASSETS AT END OF YEAR
FUNDED STATUS
Unrecognized net loss/(gain)
Unrecognized prior service costs/(credits)
$18,504
(2,583)
30
(930)
(42)
$14,979
$2,866
$(1,485)
(124)
$17,022
$15,608
1,935
469
(869)
(53)
$18,504
$1,147
$205
(140)
1,927
475
(945)
(43)
$17,022
$(1,943)
$3,330
(156)
$17,566
(2,453)
17
(842)
(40)
$14,248
$2,853
$(1,397)
(143)
$16,147
$14,790
1,838
432
(799)
(52)
$17,566
$1,225
$207
(163)
1,830
435
(867)
(41)
$16,147
$(1,674)
$3,145
(183)
Accumulated benefit obligation
$11,167
$15,469
$16,768
$10,478
$14,504
$15,676
The increase in the pension funded status at December 31, 2022 for Con Edison and CECONY of $1,719 million
and $1,628 million, respectively, compared with December 31, 2021, was primarily due to a decrease in the plan's
projected benefit obligation as a result of an increase in the discount rate. The increase in the pension funded status
liability at December 31, 2021 for Con Edison and CECONY of $3,090 million and $2,899 million, respectively,
compared with December 31, 2020, was primarily due to a decrease in the plan's projected benefit obligation as a
result of an increase in the discount rate and actuarial gains on plan assets exceeding the expected rate of return.
See below for further information on the change in the discount rate and determination of the discount rate
assumption. For Con Edison, the 2022 increase in pension funded status asset corresponds with a decrease to
regulatory assets of $1,655 million for unrecognized net losses and unrecognized prior service costs associated
with the Utilities consistent with the accounting rules for regulated operations, a credit to OCI of $15 million (net of
taxes) for the unrecognized net losses, and an immaterial change to OCI (net of taxes) for the unrecognized prior
service costs associated with certain employees of the Clean Energy Businesses, Con Edison Transmission, and
RECO who previously worked for the Utilities. For 2022, included within the funded status are noncurrent liabilities
of $311 million and $287 million for Con Edison and CECONY, respectively. For 2021, included within the funded
status are noncurrent liabilities of $459 million and $381 million for Con Edison and CECONY, respectively.
For CECONY, the increase in pension funded status asset at December 31, 2022 corresponds with a decrease to
regulatory assets of $1,579 million for unrecognized net losses and unrecognized prior service costs consistent with
the accounting rules for regulated operations, and also a credit to OCI of $3 million (net of taxes) for unrecognized
net losses, and an immaterial change to OCI (net of taxes) for the unrecognized prior service costs associated with
certain employees of the Clean Energy Businesses and Con Edison Transmission who previously worked for
CECONY.
At December 31, 2022 and 2021, Con Edison’s investments included $459 million and $525 million, respectively,
held in external trust accounts for benefit payments pursuant to the supplemental retirement plans. Included in
CON EDISON ANNUAL REPORT 2022
155
these amounts for CECONY were $439 million and $499 million, respectively. See Note R. The accumulated benefit
obligations for the supplemental retirement plans for Con Edison and CECONY were $306 million and $280 million
as of December 31, 2022, respectively, and $386 million and $352 million as of December 31, 2021, respectively.
Assumptions
The actuarial assumptions were as follows:
Weighted-average assumptions used to determine benefit obligations at December 31:
Discount rate
Interest crediting rate for cash balance plan
Rate of compensation increase
CECONY
O&R
Weighted-average assumptions used to determine net periodic benefit cost for the years
ended December 31:
Discount rate
Interest crediting rate for cash balance plan
Expected return on plan assets
Rate of compensation increase
CECONY
O&R
2022
2021
2020
5.45 %
4.00 %
3.80 %
3.20 %
3.00 %
3.50 %
7.00 %
3.80 %
3.20 %
3.00 %
3.50 %
3.80 %
3.20 %
2.55 %
3.00 %
7.00 %
3.80 %
3.20 %
2.55 %
3.00 %
3.80 %
3.20 %
3.35 %
3.30 %
7.00 %
3.80 %
3.20 %
The expected return assumption reflects anticipated returns on the plan’s current and future assets. The
Companies’ expected return was based on an evaluation of the current environment, market and economic outlook,
relationships between the economy and asset class performance patterns, and recent and long-term trends in asset
class performance. The projections were based on the plan’s target asset allocation.
Discount Rate Assumption
To determine the assumed discount rate, the Companies use a model that produces a yield curve based on
discounting plan specific cash flows with corresponding spot rates on a yield curve. Term structures of interest rates
are based on AA rated corporate bonds. Bonds with questionable pricing information and bonds that are not
representative of the overall market are excluded from consideration. For example, the bonds used in the model
cannot be callable (with the exception of "make whole" callable bonds). The spot rates defined by the yield curve
and the plan’s projected benefit payments are used to develop a weighted average discount rate.
Expected Benefit Payments
Based on current assumptions, the Companies expect to make the following benefit payments over the next ten
years:
(Millions of Dollars)
Con Edison
CECONY
2023
$748
692
2024
$759
703
2025
$809
754
2026
$780
725
2027
$792
738
2028-2032
$4,095
3,824
Expected Contributions
Based on estimates as of December 31, 2022, the Companies expect to make contributions to the pension plans
during 2023 of $10 million (of which $8 million is to be made by CECONY). The Companies’ policy is to fund the
total periodic benefit cost, if any, of the qualified plan to the extent tax deductible and to also contribute to the
non-qualified supplemental plans.
156
CON EDISON ANNUAL REPORT 2022
Plan Assets
The asset allocations for the pension plan at the end of 2022, 2021 and 2020, and the target allocation for 2023 are
as follows:
Asset Category
Equity Securities
Debt Securities
Real Estate and Other Alternatives
Total
Target
Allocation Range
2023
28% - 38%
42% - 60%
12% - 22%
Plan Assets at December 31,
2022
33 %
50 %
17 %
100 %
2021
50 %
38 %
12 %
100 %
2020
51 %
38 %
11 %
100 %
Con Edison has established a pension trust for the investment of assets to be used for the exclusive purpose of
providing retirement benefits to participants and beneficiaries and payment of plan expenses.
Pursuant to resolutions adopted by Con Edison’s Board of Directors, the Named Fiduciary Committee (the
Committee) has general oversight responsibility for Con Edison’s pension and other employee benefit plans. The
pension plan’s named fiduciaries have been granted the authority to control and manage the operation and
administration of the plans, including overall responsibility for the investment of assets in the trust and the power to
appoint and terminate investment managers.
The investment objectives of the Con Edison pension plan are to maintain a level and form of assets adequate to
meet benefit obligations to participants, to achieve the expected long-term total return on the trust assets within a
prudent level of risk and maintain a level of volatility that is not expected to have a material impact on the company’s
expected contribution and expense or the company’s ability to meet plan obligations. The assets of the plan have no
significant concentration of risk in one country (other than the United States), industry or entity.
The strategic asset allocation is intended to meet the objectives of the pension plan by diversifying its funds across
asset classes, investment styles and fund managers. An asset/liability study typically is conducted every few years
to determine whether the current strategic asset allocation continues to represent the appropriate balance of
expected risk and reward for the plan to meet expected liabilities. Each study considers the investment risk of the
asset allocation and determines the optimal asset allocation for the plan. The target asset allocation for 2023
reflects the results of such a study conducted in 2022.
Individual fund managers operate under written guidelines provided by Con Edison, which cover such areas as
investment objectives, performance measurement, permissible investments, investment restrictions, trading and
execution, and communication and reporting requirements. Con Edison management regularly monitors, and the
named fiduciaries review asset class performance, total fund performance, and compliance with asset allocation
guidelines. Management changes fund managers and rebalances the portfolio as appropriate.
Assets measured at fair value on a recurring basis are summarized below as defined by the accounting rules for fair
value measurements (see Note R).
CON EDISON ANNUAL REPORT 2022
157
The fair values of the pension plan assets at December 31, 2022 by asset category are as follows:
Level 1
Level 2
Total
(Millions of Dollars)
Investments within the fair value hierarchy
U.S. Equity (a)
International Equity (b)
U.S. Government Issued Debt (c)
Corporate Bonds Debt (d)
Structured Assets Debt (e)
Other Fixed Income Debt (f)
Cash and Cash Equivalents (g)
Futures (h)
Total investments within the fair value hierarchy
Investments measured at NAV per share (n)
Private Equity (i)
Real Estate (j)
Hedge Funds (k)
Total investments valued using NAV per share
Funds for retiree health benefits (l)
Funds for retiree health benefits measured at NAV per share (l)(n)
Total funds for retiree health benefits
$2,150
1,534
—
—
—
—
71
(1)
$3,754
$3
—
823
4,961
183
1,088
274
—
$7,332
(48)
(91)
$2,153
1,534
823
4,961
183
1,088
345
(1)
$11,086
1,018
2,366
657
$4,041
(139)
(51)
$(190)
$14,937
42
$14,979
Investments (excluding funds for retiree health benefits)
$3,706
$7,241
Pending activities (m)
Total fair value of plan net assets
(a) U.S. Equity includes both actively- and passively-managed assets with investments in domestic equity index funds and actively-managed
small-capitalization equities.
International Equity includes international equity index funds and actively-managed international equities.
(b)
(c) U.S. Government Issued Debt includes agency and treasury securities.
(d) Corporate Bonds Debt consists of debt issued by various corporations.
(e) Structured Assets Debt includes commercial-mortgage-backed securities and collateralized mortgage obligations.
(f) Other Fixed Income Debt includes municipal bonds, sovereign debt and regional governments.
(g) Cash and Cash Equivalents include short term investments, money markets, foreign currency and cash collateral.
(h) Futures consist of exchange-traded financial contracts encompassing U.S. Equity, International Equity and U.S. Government indices.
(i)
Private Equity consists of global private market investments. Private equity's investment objective is to generate returns on capital from a
diversified portfolio of primary fund investments, secondaries and co-investments. The plan's unfunded commitments to private equity were
approximately $260 million at December 31, 2022. However, the managers also expect to make significant cash flow distributions in 2023
and 2024. While the investments in this asset class cannot be redeemed, the plan would be able to receive distributions from selling its
limited partnership interests in the secondary market, which would be expected to take three to six months.
(j) Real Estate investments include open-end real estate funds that invest in a portfolio of real properties that are broadly diversified by
geography and property type. The real estate asset class is expected to produce returns from income and capital appreciation. Real estate
also provides a hedge against inflation. The funds allow for quarterly redemptions, however the amount and timing of distributions are
subject to market conditions and are currently uncertain.
(k) Hedge Funds are structured as a custom fund of one and that strategy can invest in external hedge fund managers that can pursue a wide
(l)
array of strategies including event driven, fundamental long/short, relative value, directional trading, and direct sourcing. This asset class
seeks to generate positive absolute returns with lower volatility than other asset classes. It invests in various hedge fund managers who can
invest in all financial instruments. If desired, substantially all of the investment could be liquidated within 18 months.
The Companies set aside funds for retiree health benefits through a separate account within the pension trust, as permitted under
Section 401(h) of the Internal Revenue Code of 1986, as amended. In accordance with the Code, the plan’s investments in the 401(h)
account may not be used for, or diverted to, any purpose other than providing health benefits for retirees. The net assets held in the 401(h)
account are calculated based on a pro-rata percentage allocation of the net assets in the pension plan. The related obligations for health
benefits are not included in the pension plan’s obligations and are included in the Companies’ other postretirement benefit obligation. See
Note F.
(m) Pending activities include security purchases and sales that have not settled, interest and dividends that have not been received and
(n)
reflects adjustments for available estimates at year end.
In accordance with ASU 2015-07, Fair Value Measurements (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net
Asset Value per Share (or its equivalent), certain investments that are measured at fair value using the net asset value per share (or its
equivalent) practical expedient have not been classified in the fair value hierarchy.
158
CON EDISON ANNUAL REPORT 2022
The fair values of the pension plan assets at December 31, 2021 by asset category are as follows:
(Millions of Dollars)
Investments within the fair value hierarchy
U.S. Equity (a)
International Equity (b)
U.S. Government Issued Debt (c)
Corporate Bonds Debt (d)
Structured Assets Debt (e)
Other Fixed Income Debt (f)
Cash and Cash Equivalents (g)
Futures (h)
Total investments within the fair value hierarchy
Investments measured at NAV per share (n)
Private Equity (i)
Real Estate (j)
Hedge Funds (k)
Level 1
Level 2
Total
$4,381
3,536
—
—
—
—
80
2
$—
—
1,500
3,936
262
1,186
425
—
$4,381
3,536
1,500
3,936
262
1,186
505
2
$7,999
$7,309
$15,308
913
2,306
315
$3,534
(210)
(48)
$(258)
$18,584
(80)
$18,504
Total investments valued using NAV per share
Funds for retiree health benefits (l)
Funds for retiree health benefits measured at NAV per share (l)(n)
Total funds for retiree health benefits
(110)
(100)
Investments (excluding funds for retiree health benefits)
$7,889
$7,209
Pending activities (m)
Total fair value of plan net assets
(a) - (n) Reference is made to footnotes (a) through (n) in the above table of pension plan assets at December 31, 2022 by asset category.
The Companies also offer a defined contribution savings plan that covers substantially all employees and made
contributions to the plan as follows:
(Millions of Dollars)
Con Edison
CECONY
For the Years Ended December 31,
2022
$57
48
2021
$55
46
2020
$52
43
Note F – Other Postretirement Benefits
The Utilities and Con Edison Transmission currently have contributory comprehensive hospital, medical and
prescription drug programs for eligible retirees, their dependents and surviving spouses.
CECONY also has a contributory life insurance program for bargaining unit employees and provides basic life
insurance benefits up to a specified maximum at no cost to certain retired management employees. O&R has a
non-contributory life insurance program for retirees. Certain employees of the Clean Energy Businesses and
Con Edison Transmission are eligible to receive benefits under these programs.
Total Periodic Benefit Cost
The components of the Companies’ total periodic postretirement benefit costs for 2022, 2021 and 2020 were as
follows:
CON EDISON ANNUAL REPORT 2022
159
(Millions of Dollars)
Service cost
Interest cost on accumulated other postretirement benefit
obligation
Expected return on plan assets
Recognition of net actuarial loss/(gain)
Recognition of prior service credit
TOTAL PERIODIC POSTRETIREMENT BENEFIT
COST/(CREDIT)
Cost capitalized
Reconciliation to rate level
Total credit recognized
Con Edison
2021
$22
33
(68)
31
(3)
$15
(9)
(7)
($1)
2020
$21
37
(66)
37
(3)
$26
(9)
(17)
$—
2022
$18
35
(72)
(14)
(1)
$(34)
(8)
29
$(13)
2022
$15
30
(58)
(9)
—
$(22)
(7)
24
$(5)
CECONY
2021
$16
28
(56)
27
(1)
$14
(7)
(12)
$(5)
2020
$16
31
(54)
36
(2)
$27
(7)
(25)
$(5)
For information about the presentation of the components of net periodic benefit cost and disclosure requirements,
see Note E.
Funded Status
The funded status of the programs at December 31, 2022, 2021 and 2020 were as follows:
(Millions of Dollars)
CHANGE IN BENEFIT OBLIGATION
Con Edison
CECONY
2022
2021
2020
2022
2021
2020
Benefit obligation at beginning of year
$1,398
$1,425
$1,357
$1,189
$1,209
$1,154
Service cost
Interest cost on accumulated postretirement benefit
obligation
Net actuarial loss/(gain)
Benefits paid and administrative expenses, net of
subsidies
Participant contributions
18
35
(311)
(130)
48
22
33
(13)
(117)
48
21
37
74
(117)
53
BENEFIT OBLIGATION AT END OF YEAR
$1,058
$1,398
$1,425
CHANGE IN PLAN ASSETS
Fair value of plan assets at beginning of year
Actual return on plan assets
Employer contributions
Employer group waiver plan subsidies
Participant contributions
Benefits paid
FAIR VALUE OF PLAN ASSETS AT END OF YEAR
FUNDED STATUS
Unrecognized net loss/(gain)
Unrecognized prior service costs
$1,150
(225)
13
55
48
(181)
$860
$(198)
$37
(12)
$1,115
92
6
21
48
(132)
$1,150
$(248)
$41
(13)
$1,026
142
7
20
53
(133)
$1,115
$(310)
$115
(16)
15
30
(239)
(121)
47
$921
$955
(187)
10
50
47
(167)
$708
$(213)
$78
—
16
28
(3)
(107)
46
$1,189
$940
67
3
19
46
(120)
$955
$(234)
$67
—
16
31
63
(107)
52
$1,209
$872
117
4
19
51
(123)
$940
$(269)
$114
(1)
The decrease in the other postretirement benefits funded status liability at December 31, 2022 for Con Edison and
CECONY of $50 million and $21 million, respectively, compared with December 31, 2021, was primarily due to a
decrease in the plans' projected benefit obligation as a result of an increase in the discount rate, which more than
offset the decrease in the fair value of plan assets as a result of the actual return on plan assets. See below for
further information on the change in the discount rate and see Note E for determination of the discount rate
assumption. The decrease in the other postretirement benefits funded status liability at December 31, 2021 for
Con Edison and CECONY of $62 million and $35 million, respectively, compared with December 31, 2020, was
primarily due to an increase in the fair value of plan assets as a result of the actual return on plan assets, along
with a decrease in the plans' projected benefit obligation as a result of an increase in the discount rate. For 2022,
included within the funded status are noncurrent assets of $72 million and $27 million for Con Edison
and CECONY,
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CON EDISON ANNUAL REPORT 2022
respectively. For 2021, included within the funded status are noncurrent assets of $79 million and $55 million for
Con Edison and CECONY, respectively.
For Con Edison, the decrease in funded status liability at December 31, 2022 corresponds with a net decrease to
regulatory assets of $2 million for unrecognized net losses and unrecognized prior service costs associated with the
Utilities consistent with the accounting rules for regulated operations, a credit to OCI of $2 million (net of taxes) for
the unrecognized net losses and an immaterial change to OCI for the unrecognized prior service costs associated
with the Clean Energy Businesses, Con Edison Transmission, and RECO.
For CECONY, the decrease in funded status liability at December 31, 2022 corresponds with an increase to
regulatory assets of $11 million for unrecognized net losses and the unrecognized prior service costs associated
with the company consistent with the accounting rules for regulated operations, a credit to OCI of $1 million (net of
taxes) for the unrecognized net losses and an immaterial change to OCI for the unrecognized prior service costs
associated with eligible employees of the Clean Energy Businesses and Con Edison Transmission who previously
worked for CECONY.
Assumptions
The actuarial assumptions were as follows:
Weighted-average assumptions used to determine benefit obligations at December 31:
Discount Rate
CECONY
O&R
Weighted-average assumptions used to determine net periodic benefit cost for the years
ended December 31:
Discount Rate
CECONY
O&R
Expected Return on Plan Assets
2022
2021
2020
5.35 %
5.45 %
2.75 %
3.00 %
2.25 %
2.55 %
2.75 %
3.00 %
6.80 %
2.25 %
2.55 %
6.80 %
3.10 %
3.35 %
6.80 %
Refer to Note E for descriptions of the basis for determining the expected return on assets, investment policies and
strategies and the assumed discount rate.
The health care cost trend rates for covered medical and prescription medication expenses used to determine the
accumulated other postretirement benefit obligations (APBO) at December 31, 2022 were assumed to increase
each year, with the initial rate gradually decreasing to the ultimate rate as follows:
Pre-65 Medical
Post-65 Medical
Prescription Medications
Initial Cost Trend
Rate
Ultimate Cost
Trend Rate
Year That Ultimate
Rate is Reached
7.00%
4.50%
7.50%
4.50%
4.50%
4.50%
2036
—
2035
Expected Benefit Payments
Based on current assumptions, the Companies expect to make the following benefit payments over the next ten
years, net of receipt of governmental subsidies and participant contributions:
(Millions of Dollars)
Con Edison
CECONY
2023
$79
71
2024
$80
71
2025
$85
76
2026
$86
77
2027
2028-2032
$87
78
$430
384
CON EDISON ANNUAL REPORT 2022
161
Expected Contributions
Based on estimates as of December 31, 2022, Con Edison expects to make a contribution of $1 million (all of which
is expected to be made by CECONY) to the other postretirement benefit plans in 2023. The Companies’ policy is to
fund the total periodic benefit cost of the plans to the extent tax deductible.
Plan Assets
The asset allocations for CECONY’s other postretirement benefit plans at the end of 2022, 2021 and 2020, and the
target allocation for 2023 are as follows:
Asset Category
Equity Securities
Debt Securities
Total
Target Allocation Range
Plan Assets at December 31,
2023
42%-80%
20%-58%
100%
2022
49 %
51 %
100 %
2021
55 %
45 %
100 %
2020
54 %
46 %
100 %
Con Edison has established postretirement health and life insurance benefit plan trusts for the investment of assets
to be used for the exclusive purpose of providing other postretirement benefits to participants and beneficiaries.
Refer to Note E for a discussion of Con Edison’s investment policy for its benefit plans.
The fair values of the plans' assets at December 31, 2022 by asset category as defined by the accounting rules for
fair value measurements (see Note R) are as follows:
(Millions of Dollars)
Equity (a)
Other Fixed Income Debt (b)
Cash and Cash Equivalents (c)
Total investments
Funds for retiree health benefits (d)
Investments (including funds for retiree health benefits)
Funds for retiree health benefits measured at net asset value (d)(e)
Pending activities (f)
Total fair value of plan net assets
Level 1
Level 2
$—
10
—
$10
48
$58
$339
275
25
$639
91
$730
Total
$339
285
25
$649
139
$788
51
21
$860
(a) Equity includes a passively managed commingled index fund benchmarked to the MSCI All Country World Index.
(b) Other Fixed Income Debt includes a passively managed commingled index fund benchmarked to the Bloomberg Barclays U.S. Long Credit
Index and an active separately managed fund indexed to the Bloomberg Barclays U.S. Long Credit Index.
(c) Cash and Cash Equivalents include short-term investments and money markets.
(d) The Companies set aside funds for retiree health benefits through a separate account within the pension trust, as permitted under
Section 401(h) of the Internal Revenue Code of 1986, as amended. In accordance with the Code, the plan’s investments in the 401(h)
account may not be used for, or diverted to, any purpose other than providing health benefits for retirees. The net assets held in the 401(h)
account are calculated based on a pro-rata percentage allocation of the net assets in the pension plan. The related obligations for health
benefits are not included in the pension plan’s obligations and are included in the Companies’ other postretirement benefit obligation. See
Note E.
In accordance with ASU 2015-07, Fair Value Measurements (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net
Asset Value per Share (or its equivalent), certain investments that are measured at fair value using the net asset value per share (or its
equivalent) practical expedient have not been classified in the fair value hierarchy.
(e)
(f) Pending activities include security purchases and sales that have not settled, interest and dividends that have not been received, and
reflects adjustments for available estimates at year-end.
162
CON EDISON ANNUAL REPORT 2022
The fair values of the plans' assets at December 31, 2021 by asset category (see Note R) are as follows:
(Millions of Dollars)
Equity (a)
Other Fixed Income Debt (b)
Cash and Cash Equivalents (c)
Total investments
Funds for retiree health benefits (d)
Investments (including funds for retiree health benefits)
Funds for retiree health benefits measured at net asset value (d)(e)
Pending activities (f)
Total fair value of plan net assets
Level 1
Level 2
$—
—
—
$—
110
$110
$474
379
22
$875
100
$975
Total
$474
379
22
$875
210
$1,085
48
17
$1,150
(a) - (f) Reference is made to footnotes (a) through (f) in the above table of other postretirement benefit plan assets at December 31, 2022 by
asset category.
Note G – Environmental Matters
Superfund Sites
Hazardous substances, such as asbestos, polychlorinated biphenyls (PCBs) and coal tar, have been used or
generated in the course of operations of the Utilities and their predecessors and are present at sites and in facilities
and equipment they currently or previously owned, including sites at which gas was manufactured or stored.
The Federal Comprehensive Environmental Response, Compensation and Liability Act of 1980 and similar state
statutes (Superfund) impose joint and several liability, regardless of fault, upon generators of hazardous substances
for investigation and remediation costs (which include costs of demolition, removal, disposal, storage, replacement,
containment and monitoring) and natural resource damages. Liability under these laws can be material and may be
imposed for contamination from past acts, even though such past acts may have been lawful at the time they
occurred. The sites at which the Utilities have been asserted to have liability under these laws, including their
manufactured gas plant sites and any neighboring areas to which contamination may have migrated, are referred to
herein as “Superfund Sites.”
For Superfund Sites where there are other potentially responsible parties and the Utilities are not managing the site
investigation and remediation, the accrued liability represents an estimate of the amount the Utilities will need to pay
to investigate and, where determinable, discharge their related obligations. For Superfund Sites (including the
manufactured gas plant sites) for which one of the Utilities is managing the investigation and remediation, the
accrued liability represents an estimate of the company’s share of the undiscounted cost to investigate the sites
and, for sites that have been investigated in whole or in part, the cost to remediate the sites, if remediation is
necessary and if a reasonable estimate of such cost can be made. Remediation costs are estimated in light of the
information available, applicable remediation standards and experience with similar sites.
The accrued liabilities and regulatory assets related to Superfund Sites at December 31, 2022 and 2021 were as
follows:
(Millions of Dollars)
Accrued Liabilities:
Manufactured gas plant sites
Other Superfund Sites
Total
Regulatory assets
Con Edison
CECONY
2022
$876
121
$997
$991
2021
$845
95
$940
$938
2022
$782
121
$903
$906
2021
$755
95
$850
$860
Most of the accrued Superfund Site liability relates to sites that have been investigated, in whole or in part.
However, for some of the sites, the extent and associated cost of the required remediation has not yet been
determined. As investigations progress and information pertaining to the required remediation becomes available,
the Utilities expect that additional liability may be accrued, the amount of which is not presently determinable but
CON EDISON ANNUAL REPORT 2022
163
may be material. The Utilities are permitted to recover or defer as regulatory assets (for subsequent recovery
through rates) prudently incurred site investigation and remediation costs.
Environmental remediation costs incurred related to Superfund Sites at December 31, 2022 and 2021 were as
follows:
(Millions of Dollars)
Remediation costs incurred
Con Edison
CECONY
2022
$21
2021
$25
2022
$20
2021
$24
Insurance and other third party recoveries received by Con Edison or CECONY were immaterial in 2022 and 2021.
Con Edison and CECONY estimate that in 2023 they will incur costs for remediation of approximately $63 million
and $61 million, respectively. The Companies are unable to estimate the time period over which the remaining
accrued liability will be incurred because, among other things, the required remediation has not been determined for
some of the sites.
In 2022, Con Edison and CECONY estimated that for their manufactured gas plant sites (including CECONY’s
Astoria site), the aggregate undiscounted potential liability for the investigation and remediation of coal tar and/or
other environmental contaminants could range up to $3,140 million and $2,990 million, respectively. These
estimates were based on the assumption that there is contamination at all sites, including those that have not yet
been fully investigated and additional assumptions about the extent of the contamination and the type and extent of
the remediation that may be required. Actual experience may be materially different.
Asbestos Proceedings
Suits have been brought in NY State and federal courts against the Utilities and many other defendants, wherein a
large number of plaintiffs sought large amounts of compensatory and punitive damages for deaths and injuries
allegedly caused by exposure to asbestos at various premises of the Utilities. The suits that have been resolved,
which are many, have been resolved without any payment by the Utilities, or for amounts that were not, in the
aggregate, material to them. The amounts specified in all the remaining thousands of suits total billions of dollars;
however, the Utilities believe that these amounts are greatly exaggerated, based on the disposition of previous
claims. At December 31, 2022, Con Edison and CECONY have accrued their estimated aggregate undiscounted
potential liabilities for these suits and additional suits that may be brought over the next 15 years as shown in the
following table. These estimates were based upon a combination of modeling, historical data analysis and risk factor
assessment. Courts have begun, and unless otherwise determined on appeal may continue, to apply different
standards for determining liability in asbestos suits than the standard that applied historically. As a result, the
Companies currently believe that there is a reasonable possibility of an exposure to loss in excess of the liability
accrued for the suits. The Companies are unable to estimate the amount or range of such loss. In addition, certain
current and former employees have claimed or are claiming workers’ compensation benefits based on alleged
disability from exposure to asbestos. CECONY is permitted to defer as regulatory assets (for subsequent recovery
through rates) costs incurred for its asbestos lawsuits and workers’ compensation claims.
The accrued liability for asbestos suits and workers’ compensation proceedings (including those related to asbestos
exposure) and the amounts deferred as regulatory assets or liabilities for the Companies at December 31, 2022 and
2021 were as follows:
(Millions of Dollars)
Accrued liability – asbestos suits
Regulatory assets – asbestos suits
Accrued liability – workers’ compensation
Regulatory liabilities – workers’ compensation
Con Edison
CECONY
2022
2021
2022
2021
$8
8
61
11
$8
8
65
8
$7
7
59
11
$7
7
62
8
164
CON EDISON ANNUAL REPORT 2022
Note H – Material Contingencies
Manhattan Explosion and Fire
On March 12, 2014, two multi-use five-story tall buildings located on Park Avenue between 116th and 117th Streets
in Manhattan were destroyed by an explosion and fire. CECONY had delivered gas to the buildings through service
lines from a distribution main located below ground on Park Avenue. Eight people died and more than 50 people
were injured. Additional buildings were also damaged. The National Transportation Safety Board (NTSB)
investigated. The parties to the investigation included the company, the City of New York, the Pipeline and
Hazardous Materials Safety Administration and the NYSPSC. In June 2015, the NTSB issued a final report
concerning the incident, its probable cause and safety recommendations. The NTSB determined that the probable
cause of the incident was (1) the failure of a defective fusion joint at a service tee (which joined a plastic service line
to a plastic distribution main) installed by the company that allowed gas to leak from the distribution main and
migrate into a building where it ignited and (2) a breach in a city sewer line that allowed groundwater and soil to flow
into the sewer, resulting in a loss of support for the distribution main, which caused it to sag and overstressed the
defective fusion joint. The NTSB also made safety recommendations, including recommendations to the company
that addressed its procedures for the preparation and examination of plastic fusions, training of its staff on
conditions for notifications to the city’s Fire Department and extension of its gas main isolation valve installation
program. In February 2017, the NYSPSC approved a settlement agreement with the company related to the
NYSPSC's investigations of the incident and the practices of qualifying persons to perform plastic fusions. Pursuant
to the agreement, the company is providing $27 million of future benefits to customers (for which it has accrued a
regulatory liability) and will not recover from customers $126 million of costs for gas emergency response activities
that it had previously incurred and expensed. Approximately eighty suits are pending against the company seeking
generally unspecified damages and, in some cases, punitive damages, for wrongful death, personal injury, property
damage and business interruption. The company notified its insurers of the incident and believes that the policies in
force at the time of the incident will cover the company’s costs, in excess of a required retention (the amount of
which is not material), to satisfy any liability it may have for damages in connection with the incident. During 2020,
the company accrued its estimated liability for the suits of $40 million and an insurance receivable in the same
amount, which estimated liability did not change as of December 31, 2022.
Other Contingencies
For additional contingencies, see “COVID-19 Regulatory Matters" and "Other Regulatory Matters” in Note B, Note G
and "Uncertain Tax Positions" in Note L.
Guarantees
Con Edison and its subsidiaries have entered into various agreements providing financial or performance assurance
primarily to third parties on behalf of their subsidiaries. Maximum amounts guaranteed by Con Edison and its
subsidiaries under these agreements totaled $2,412 million and $2,157 million at December 31, 2022 and 2021,
respectively.
A summary, by type and term, of Con Edison’s total guarantees under these other agreements at December 31,
2022 is as follows:
Guarantee Type
0 – 3 years
4 – 10 years
> 10 years
Con Edison Transmission
Energy transactions (a)
Renewable electric projects (a)
Other (a)
Total
$407
489
354
222
$1,472
(Millions of Dollars)
$—
22
69
—
$91
$—
294
555
—
$849
Total
$407
805
978
222
$2,412
(a) These represent guarantees of subsidiaries of the Clean Energy Businesses. The Clean Energy Businesses were classified as held for sale
as of December 31, 2022. See "Assets and Liabilities Held for Sale" in Note A, and Note X.
Con Edison Transmission – Con Edison has guaranteed payment by CET of the contributions CET agreed to
make to New York Transco LLC (NY Transco). CET owns a 45.7 percent interest in NY Transco. In April 2019, the
New York Independent System Operator (NYISO) selected a transmission project that was jointly proposed by
National Grid and NY Transco. The siting, construction and operation of the project will require approvals and
permits from appropriate governmental agencies and authorities, including the NYSPSC. The NYISO indicated it will
work with the developers to enter into agreements for the development and operation of the projects, including a
CON EDISON ANNUAL REPORT 2022
165
schedule for entry into service by December 2023. Guarantee amount shown includes the maximum possible
required amount of CET’s contributions for this project as calculated based on the assumptions that the project is
completed at 175 percent of its estimated costs and NY Transco does not use any debt financing for the project.
Energy Transactions — Con Edison and the Clean Energy Businesses guarantee payments on behalf of their
subsidiaries in order to facilitate physical and financial transactions in electricity, gas, pipeline capacity,
transportation, oil, renewable energy credits and energy services. To the extent that liabilities exist under the
contracts subject to these guarantees, such liabilities are included in Con Edison’s consolidated balance sheet.
Renewable Electric Projects – Con Edison and the Clean Energy Businesses guarantee payments on behalf of
their wholly-owned subsidiaries associated with their investment in, or development for others of, solar and wind
energy facilities.
Other – Other guarantees include a $70 million guarantee provided by Con Edison to Travelers Insurance Company
for indemnity agreements for surety bonds in connection with the operation of solar energy facilities and energy
service projects of the Clean Energy Businesses. Other guarantees also include a guarantee provided by Con
Edison in connection with the Clean Energy Businesses’ obligations under a $150 million, 364-Day Senior
Unsecured Term Loan Credit Agreement. See Note D.
Note I – Electricity and Gas Purchase Agreements
The Utilities have electricity purchase agreements with non-utility generators and others for generating capacity and
gas purchase agreements for natural gas supply, transportation and storage. The Utilities recover their purchased
power and gas costs in accordance with provisions approved by the applicable state public utility regulators. See
“Recoverable Energy Costs” in Note A. The Utilities also conducted auctions and have entered into various other
electricity and gas purchase agreements. Assuming performance by the parties to the electricity purchase
agreements, the Utilities are obligated over the terms of the agreements to make capacity and other fixed
payments.
The future capacity and other fixed payments under the electricity and gas purchase agreements are estimated to
be as follows:
(Millions of Dollars)
Con Edison
Electricity power purchase agreements
Natural gas
Gas transportation and storage
CECONY
Electricity power purchase agreements
Natural gas
Gas transportation and storage
2023
2024
2025
2026
2027
$121
679
471
121
603
412
$90
9
558
90
8
488
$64
—
484
64
—
424
$58
—
454
58
—
397
$44
—
369
44
—
323
All Years
Thereafter
$390
—
3,164
390
—
2,762
For energy delivered and gas purchased under most of the electricity and gas purchase agreements, the Utilities
are obligated to pay variable prices. The company’s payments under the significant terms of the agreements for
capacity, energy, gas transportation and storage, and other fixed payments in 2022, 2021 and 2020 were as follows:
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CON EDISON ANNUAL REPORT 2022
(Millions of Dollars)
Con Edison
Astoria Generating Company (a)
Brooklyn Navy Yard (b)
Gas Transportation and Storage (c)
Total
CECONY
Astoria Generating Company (a)
Brooklyn Navy Yard (b)
Gas Transportation and Storage (c)
Total
(a) Capacity purchase agreements with terms ending in 2022 through 2025.
(b) Contract for plant output, which started in 1996 and ends in 2036.
(c) Contracts for various counterparties and terms extending through 2043.
For the Years Ended December 31,
2022
$45
165
386
$596
$45
165
340
$550
2021
$20
139
393
552
$20
139
347
$506
2020
$26
113
347
$486
$26
113
307
$446
Note J – Leases
The Companies lease land, office buildings, equipment and access rights to support electric transmission facilities.
The Companies recognize lease right-of-use assets and lease liabilities on their consolidated balance sheets for
virtually all of their leases (other than leases that meet the definition of a short-term lease, the expense for which
was immaterial). A lease right-of-use asset represents a right to use an identifiable underlying asset and obtain
substantially all of the economic benefits from the use of that asset for the lease term. A lease liability represents an
obligation to make lease payments arising from the lease. Leases are classified as either operating leases or
finance leases. Operating leases of the Utilities, and in 2021 of the Clean Energy Businesses, are included in
operating lease right-of-use asset and operating lease liabilities on the Companies’ consolidated balance sheets.
Operating leases of the Clean Energy businesses are included in assets held for sale and liabilities held for sale on
Con Edison's consolidated balance sheet as of December 31,2022. See "Assets and Liabilities Held for Sale" in
Note A and Note X. Finance leases are included in other noncurrent assets, other current liabilities and other
noncurrent liabilities. The Utilities, as regulated entities, are permitted to continue to recognize expense for
operating leases using the timing that conforms to the regulatory rate treatment as rental payments are recovered
from our customers and to account the same way for finance leases.
For new operating leases, the Companies recognize operating lease right-of-use assets and operating lease
liabilities based on the present value of the future minimum lease payments over the lease term at commencement
date. As most of the Companies’ leases do not provide an implicit rate, the Companies used their collateralized
incremental borrowing rate based on the information available at the commencement date to determine the present
value of future payments. Most of the Companies’ leases have remaining lease terms of one year to 20 years and
may include options to renew or extend the leases for up to five years at the fair rental value. The Companies' lease
terms include options to renew, extend or terminate the lease when it is reasonably certain that the Companies will
exercise that option. There were no leases with material variable lease payments or residual value guarantees. The
Companies account for lease and non-lease components as a single lease component.
Operating lease cost and cash paid for amounts included in the measurement of lease liabilities for the twelve
months ended December 31, 2022 and 2021 were as follows:
(Millions of Dollars)
Operating lease cost
Operating lease cash flows
Con Edison
CECONY
2022
$88
$83
2021
$86
$80
2022
$67
$64
2021
$66
$63
As of December 31, 2022 and 2021, assets recorded as finance leases for Con Edison and CECONY were
$2 million and $1 million, respectively. The accumulated amortization associated with finance leases for Con Edison
and CECONY were $5 million and $2 million, respectively, at December 31, 2022 and $4 million and $2 million,
respectively, at December 31, 2021.
CON EDISON ANNUAL REPORT 2022
167
For the twelve months ended December 31, 2022 and 2021, finance lease costs and cash flows for Con Edison and
CECONY were immaterial.
Right-of-use assets obtained in exchange for lease obligations for Con Edison and CECONY were $79 million and
$68 million, respectively, for the twelve months ended December 31, 2022, of which $10 million for Con Edison
related to the Clean Energy Businesses which were classified as held for sale, see "Assets and Liabilities Held for
Sale" in Note A and Note X, and were $58 million and $12 million, respectively, for the twelve months ended
December 31, 2021.
Other information related to leases for Con Edison and CECONY at December 31, 2022 and 2021 was as follows:
Weighted Average Remaining Lease Term:
Operating leases, (a)
Finance leases
Weighted Average Discount Rate:
Operating leases, (a)
Finance leases
Con Edison
CECONY
2022
2021
2022
2021
12.3 years
7.2 years
18.5 years
7.1 years
12.4 years
2.3 years
12.1 years
3.1 years
3.7%
1.9%
4.3%
1.8%
3.7%
1.0%
3.5%
1.1%
(a) Amounts for Con Edison in 2022 exclude operating leases of the Clean Energy Businesses, which were classified as held for sale as of
December 31, 2022, see "Assets and Liabilities Held for Sale" in Note A and Note X. Including the operating leases of the Clean Energy
Businesses would result in a weighted average remaining lease term of 18.3 years and a weighted average discount rate of 4.4% as of
December 31, 2022.
Future minimum lease payments under non-cancellable leases at December 31, 2022 were as follows:
(Millions of Dollars)
Year Ending December 31, (b)
2023
2024
2025
2026
2027
All years thereafter
Total future minimum lease payments
Less: imputed interest
Total
Reported as of December 31, 2022
Operating lease liabilities (current) (a)
Operating lease liabilities held for sale (current)
Operating lease liabilities (noncurrent) (a)
Operating lease liabilities held for sale (noncurrent)
Other current liabilities
Other noncurrent liabilities
Total
Con Edison
CECONY
Operating
Leases
Finance
Leases
Operating
Leases
Finance
Leases
$64
$—
$64
$—
65
65
64
64
419
$741
(162)
$579
1
—
—
—
1
$2
—
$2
$103
$—
33
476
249
—
—
$861
—
—
—
—
2
$2
64
64
64
64
419
$739
(161)
$578
$103
—
475
—
—
—
$578
1
—
—
—
—
$1
—
$1
$—
—
—
—
—
1
$1
(a) Amounts exclude operating lease liabilities of the Clean Energy Businesses ($281 million), which are classified as current liabilities held for
sale on Con Edison's consolidated balance sheet as of December 31, 2022. See "Assets and Liabilities Held for Sale" in Note A and Note
X.
168
CON EDISON ANNUAL REPORT 2022
(b) Amounts exclude operating lease future minimum lease payments of the Clean Energy Businesses, of $19 million, $18 million, $19 million,
$17 million, $17 million, and $492 million for the 12 months ended December 31, 2023, 2024, 2025, 2026, 2027, and all years thereafter,
respectively, and imputed interest of $301 million.
At December 31, 2022, the Companies had an additional operating lease agreement that had not yet commenced,
for a solar electric facility under construction by the Clean Energy Businesses, the amount of which was not
material. The Clean Energy Businesses were classified as held for sale as of December 31, 2022. See "Assets and
Liabilities Held for Sale" in Note A and Note X.
The Companies are lessors under certain leases whereby the Companies own real estate and distribution poles and
lease portions of them to others. Revenue under such leases was immaterial for Con Edison and CECONY for the
twelve months ended December 31, 2022 and 2021.
Note K – Goodwill
The Companies test goodwill for impairment at least annually or whenever there is a triggering event. There is an
option to first make a qualitative assessment of whether it is more likely than not that the fair value of a reporting
unit is less than its carrying amount before applying a quantitative goodwill impairment test. The quantitative
goodwill impairment test compares the estimated fair value of a reporting unit with its carrying value, including
goodwill. If the estimated fair value of a reporting unit exceeds its carrying value, goodwill of the reporting unit is
considered not impaired. If the carrying value exceeds the estimated fair value of the reporting unit, an impairment
loss shall be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that
reporting unit.
Con Edison has recorded goodwill related to the O&R merger, the acquisition of a portion of Honeoye, and the
acquisitions of a residential solar company and a battery storage company by the Clean Energy Businesses. In
2022 and 2021, Con Edison completed impairment tests for its goodwill of $406 million related to the O&R merger
and determined that it was not impaired. For the impairment test, $245 million and $161 million of goodwill were
allocated to CECONY and O&R, respectively. In 2022 and 2021, the Companies performed the qualitative
assessment for goodwill related to the O&R merger. In 2022 and 2021, Con Edison completed impairment tests for
goodwill of $1 million and $8 million, respectively, related to Honeoye, $14 million related to the residential solar
company acquired by the Clean Energy Businesses and $18 million related to the battery storage company
acquired by the Clean Energy Businesses. The amounts related to the Clean Energy Businesses were classified as
held for sale on Con Edison's consolidated balance sheet as of December 31, 2022. In 2021, Con Edison
determined, based on a discounted cash flow analysis, that $7 million of goodwill was impaired related to Honeoye,
$5 million of which was attributed to CET and $2 million of which was attributed to CECONY.
Estimates of future cash flows, projected growth rates, and discount rates inherent in the cash flow estimates for
Con Edison subsidiaries other than the Utilities may vary significantly from actual results, which could result in a
future impairment of goodwill. The Companies identified no triggering events or changes in circumstances related to
the COVID-19 pandemic that would indicate that the carrying value of goodwill may not be recoverable at
December 31, 2022 and 2021.
CON EDISON ANNUAL REPORT 2022
169
Note L – Income Tax
The components of income tax are as follows:
(Millions of Dollars)
2022
2021
2020
2022
2021
2020
Con Edison
CECONY
State
Current
Deferred
Federal
Current
Deferred
Amortization of investment tax credits
Total income tax expense
$5
324
58
117
(6)
$498
$14
79
43
61
(7)
$190
$7
50
(2)
42
(7)
$90
$0
110
170
(23)
(2)
$255
$1
106
121
21
(3)
$246
$6
97
41
73
(2)
$215
Reconciliation of the difference between income tax expense and the amount computed by applying the prevailing
statutory income tax rate to income before income taxes is as follows:
(% of Pre-tax income)
STATUTORY TAX RATE
Federal
Changes in computed taxes resulting from:
State income taxes, net of federal income tax benefit
Taxes attributable to noncontrolling interests
Cost of removal
Other plant-related items
Amortization of excess deferred federal income taxes
Renewable energy credits
Research and development credits
Remeasurement of accumulated deferred state
income taxes, net of federal income tax benefit
Other
Effective tax rate
Con Edison
CECONY
2022
2021
2020
2022
2021
2020
21%
21%
21%
21%
21%
21%
6
1
1
—
(9)
(2)
—
6
—
4
3
2
(1)
(12)
(2)
(1)
—
—
4
(1)
2
(1)
(14)
(3)
—
—
(1)
5
—
1
(1)
(10)
—
—
—
—
5
—
1
(1)
(11)
—
—
—
—
5
—
1
(1)
(12)
—
—
—
1
24%
14%
7%
16%
15%
15%
Con Edison’s effective tax rate increased 10% in 2022 primarily due to higher income before income tax expense
and the remeasurement of deferred state income tax assets and liabilities as a result of the anticipated sale of the
Clean Energy Businesses (see Note X). Con Edison estimated the impact of the anticipated sale on its state
apportionment factors and recorded an increase to its net accumulated deferred state income tax liabilities of
$111 million and an increase to its valuation allowance on state and local net operating loss (NOL) carryforwards of
$10 million, and recorded a corresponding deferred income tax expense of $121 million (net of federal income
taxes) in the fourth quarter of 2022. During 2022, Con Edison wrote off $11 million of deferred tax assets (net of
federal income taxes) and related valuation allowance on other state NOLs, with no impact on deferred income tax
expense, and recognized a deferred income tax benefit of $3 million (net of federal income taxes) from net
operating losses that were utilized during the year.
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CON EDISON ANNUAL REPORT 2022
The tax effects of temporary differences, which gave rise to deferred tax assets and liabilities, are as follows:
(Millions of Dollars)
Deferred tax liabilities:
Property basis differences
Regulatory Assets:
Deferred storm costs
Environmental remediation costs
Other regulatory assets
Unrecognized pension and other postretirement costs
Pensions and retiree benefits – asset
Operating lease right-of-use asset
Equity investments
Other
Total deferred tax liabilities
Deferred tax assets:
Regulatory liabilities:
Unrecognized pension and other postretirement costs
Future income tax
Other regulatory liabilities
Tax credits carryforward
Loss carryforwards
Valuation allowance
Superfund and other environmental costs
Operating lease liabilities
Pensions and retiree benefits – liability
Asset retirement obligations
Equity investments
Other
Total deferred tax assets
Net deferred tax liabilities
Unamortized investment tax credits
Net deferred tax liabilities and unamortized investment tax credits
Con Edison
CECONY
2022
2021
2022
2021
$8,770
$8,298
$7,475
$7,213
27
278
754
22
917
230
26
—
33
264
640
36
478
204
—
30
—
254
720
22
894
163
—
—
—
241
609
31
471
155
—
—
$11,024
$9,983
$9,528
$8,720
447
489
860
767
117
(18)
280
233
162
153
—
14
3,504
$7,520
121
$7,641
—
554
727
946
144
(22)
264
195
218
177
34
—
3,237
$6,746
127
$6,873
431
454
739
—
24
—
254
162
148
140
—
45
2,397
$7,131
13
$7,144
—
517
620
—
38
—
238
155
188
141
—
42
1,939
$6,781
15
$6,796
At December 31, 2022, Con Edison has $767 million in general business tax credit carryovers (primarily renewable
energy tax credits). If unused, these general business tax credit carryovers will begin to expire in 2034. A deferred
tax asset for these tax attribute carryforwards was recorded, and no valuation allowance was provided, as it is more
likely than not that the deferred tax asset will be realized.
At December 31, 2022, Con Edison has a New York State NOL of $892 million, primarily as a result of accelerated
tax depreciation. A deferred tax asset of $84 million has been recognized for these New York State NOL
carryforwards that will begin to expire, if unused, in 2038, and no valuation allowance is needed as it is more likely
than not that the deferred tax asset will be realized. In addition, Con Edison has a deferred tax asset on its New
York City NOL carryforward of $17 million that will begin to expire, if unused, in 2035, and a related valuation
allowance of $14 million as it is not more likely than not that the deferred tax assets will be realized. Con Edison
also has a deferred tax asset of $46 million on other state net operating loss carryforwards that will begin to expire if
unused in 2038, and have a related valuation allowance of $10 million, as it is not more likely than not that the
deferred tax assets will be realized.
In April 2021, NY State passed a law that temporarily increased the corporate franchise tax rate on business income
from 6.50 percent to 7.25 percent for a 3 year period, retroactive to January 1, 2021, for taxpayers with taxable
income greater than $5 million. The law also temporarily reinstated the business capital tax, not to exceed an
annual maximum tax liability of $5 million per taxpayer, with the corporation paying the higher of its franchise or
income tax liability during the same period. The provisions to increase the corporate franchise tax rate and reinstate
CON EDISON ANNUAL REPORT 2022
171
a business capital tax are scheduled to expire after 2023 and are not expected to have a material impact on the
Company’s financial position, results of operations or liquidity. On November 19, 2021, the Acting Commissioner
determined that the Metropolitan Transportation Authority (MTA) surcharge rate will remain the same at 30% for tax
years beginning on or after January 1, 2022, and before January 1, 2023. As a result of the Clean Energy
Businesses anticipated sale, Con Edison expects to have NY State taxable income in excess of the $5 million after
utilizing its entire NY State NOL, and the group will be subject to the higher 7.25 percent (9.4 percent with MTA
surcharge rate) rate on its taxable income, which was included in Con Edison's remeasurement of its deferred state
income tax assets and liabilities at the end of 2022.
Uncertain Tax Positions
Under the accounting rules for income taxes, the Companies are not permitted to recognize the tax benefit
attributable to a tax position unless such position is more likely than not to be sustained upon examination by taxing
authorities, including resolution of any related appeals and litigation processes, based solely on the technical merits
of the position.
A reconciliation of the beginning and ending amounts of unrecognized tax benefits for Con Edison and CECONY
follows:
(Millions of Dollars)
Balance at January 1,
Additions based on tax positions related to the current year
Additions based on tax positions of prior years
Reductions for tax positions of prior years
Settlements
Balance at December 31,
Con Edison
CECONY
2022
$17
3
6
(1)
(2)
$23
2021
$14
3
2
(2)
—
$17
2020
$13
—
1
—
—
$14
2022
2021
2020
$5
2
1
—
—
$8
$3
2
1
(1)
—
$5
$2
—
1
—
—
$3
At December 31, 2022, the estimated liability for uncertain tax positions for Con Edison was $23 million ($8 million
for CECONY). Con Edison reasonably expects to resolve within the next twelve months approximately $20 million of
various federal uncertainties due to the expected completion of ongoing tax examinations, of which the entire
amount, if recognized, would reduce Con Edison's effective tax rate. The amount related to CECONY is $6 million,
which, if recognized, would reduce CECONY’s effective tax rate. The total amount of unrecognized tax benefits, if
recognized, that would reduce Con Edison’s effective tax rate is $23 million with $8 million attributable to CECONY.
The Companies recognize interest on liabilities for uncertain tax positions in interest expense and would recognize
penalties, if any, in operating expenses in the Companies’ consolidated income statements. In 2022, 2021 and
2020, the Companies recognized an immaterial amount of interest expense and no penalties for uncertain tax
positions in their consolidated income statements. At December 31, 2022 and 2021, the Companies recognized an
immaterial amount of accrued interest on their consolidated balance sheets.
During 2022, Con Edison settled its Massachusetts corporation excise tax audit for tax years 2013 through 2018,
and made a payment of $2 million during the year and released $1 million of uncertain tax positions as a result of
the settlement.
Con Edison's federal tax returns for tax years 2021 and 2020 remain under examination. State and local income tax
returns remain open for examination in NY for tax years 2010 through 2021, in NJ for tax years 2018 through 2021
and in New York City for tax years 2018 through 2021.
172
CON EDISON ANNUAL REPORT 2022
Note M – Revenue Recognition
The following table presents, for the years ended December 31, 2022, 2021 and 2020, revenue from contracts with
customers as defined in Accounting Standards Codification (ASC) Topic 606, "Revenue from Contracts with
Customers," as well as additional revenue from sources other than contracts with customers, disaggregated by
major source.
2022
2021
2020
(Millions of Dollars)
CECONY
Electric
Gas
Steam
Revenues
from
contracts
with
customers
Other
revenues
(a)
Total
operating
revenues
Revenues
from
contracts
with
customers
Other
revenues
(a)
Total
operating
revenues
Revenues
from
contracts
with
customers
Other
revenu
es (a)
Total
operating
revenues
$9,917
2,875
584
$(166)
49
9
$9,751
2,924
593
$8,736
2,324
519
$70
54
13
$8,806
2,378
532
$8,026
1,998
494
$77
38
14
$8,103
2,036
508
Total CECONY
$13,376
$(108)
$13,268
$11,579
$137
$11,716
$10,518
$129
$10,647
O&R
Electric
Gas
Total O&R
Clean Energy Businesses (c)
Renewables
Energy services
Develop/Transfer Projects
Other
771
306
$1,077
637
317
44
—
Total Clean Energy Businesses
$998
Con Edison Transmission
Other (b)
Total Con Edison
4
—
2
6
$8
—
—
—
321
$321
—
(6)
773
312
$1,085
637
317
44
321
691
265
$956
638
234
45
—
$1,319
$917
4
(6)
4
—
(10)
(5)
$(15)
—
—
—
105
$105
—
(7)
681
260
$941
638
234
45
105
619
224
$843
608
52
1
—
$1,022
$661
4
(7)
4
—
10
9
$19
—
—
—
75
$75
—
(3)
629
233
$862
608
52
1
75
$736
4
(3)
$15,455
$215
$15,670
$13,456
$220
$13,676
$12,026
$220
$12,246
(a) For the Utilities, this includes primarily revenue or negative revenue adjustments from alternative revenue programs, such as the revenue
decoupling mechanisms under their NY electric and gas rate plans (see "Rate Plans" in Note B) and for 2021 recognition of late payment
charges and fees that were not billed (LPCs) for the years ended December 31, 2020 and 2021 and for which recovery was granted by the
NYSPSC. See "COVID-19 Regulatory Matters" in Note B and "Utilities' Assessment of Late Payment Charges" below. The amount of
revenue recognized under such alternative revenue programs for 2021 includes $48 million, $34 million and $74 million for CECONY's
revenue decoupling mechanisms, net EAMs, and LPCs, respectively, and $(18) million, $2 million and $4 million for O&R's revenue
decoupling mechanisms, net EAMs, and LPCs, respectively. For the Clean Energy Businesses, this includes revenue from wholesale
services.
(b) Parent company and consolidation adjustments.
(c) The Clean Energy Businesses were classified as held for sale as of December 31, 2022. See "Assets and Liabilities Held for Sale" in Note A
and Note X.
Revenues are recorded as energy is delivered, generated or services are provided and billed to customers, except
for services under percentage-of-completion contracts. Amounts billed are recorded in accounts receivable -
customers, with payment generally due the following month. Con Edison’s and the Utilities’ accounts receivable -
customers balance also reflects the Utilities’ purchase of receivables from energy service companies to support
retail choice programs. Accrued revenues not yet billed to customers are recorded as accrued unbilled revenues.
The Utilities have the obligation to deliver electricity, gas and steam energy to their customers. As the energy is
immediately available for use upon delivery to the customer, the energy and its delivery are identifiable as a single
performance obligation. The Utilities recognize revenues as this performance obligation is satisfied over time as the
Utilities deliver, and the customers simultaneously receive and consume, the energy. The amount of revenues
recognized reflects the consideration the Utilities expect to receive in exchange for delivering the energy. Under
their tariffs, the transaction price for full-service customers includes the Utilities’ energy cost and for all customers
includes delivery charges determined based on customer class and in accordance with established tariffs and
guidelines of the NYSPSC or the NJBPU, as applicable. Accordingly, there is no unsatisfied performance obligation
associated with these customers. The transaction price is applied to the Utilities’ revenue generating activities
through the customer billing process. Because energy is delivered over time, the Utilities use output methods that
recognize revenue based on direct measurement of the value transferred, such as units delivered, which provides
an accurate measure of value for the energy delivered. The Utilities accrue revenues at the end of each month for
estimated energy delivered but not yet billed to customers. The Utilities defer over a 12-month period net
CON EDISON ANNUAL REPORT 2022
173
interruptible gas revenues, other than those authorized by the NYSPSC to be retained by the Utilities, for refund to
firm gas sales and transportation customers.
The Clean Energy Businesses recognize revenue for the sale of energy from renewable electric projects as energy
is generated and billed to counterparties; accrue revenues at the end of each month for energy generated but not
yet billed to counterparties; and recognize revenue as energy is delivered and services are provided for managing
energy supply assets leased from others and managing the dispatch, fuel requirements and risk management
activities for generating plants and merchant transmission in the northeastern United States. The Clean Energy
Businesses also recognize revenue for providing energy-efficiency services to government and commercial
customers, and recognize revenue for engineering, procurement and construction services, under the percentage-
of-completion method of revenue recognition. The Clean Energy Businesses were classified as held for sale as of
December 31, 2022. See "Assets and Liabilities Held for Sale" in Note A and Note X.
Clean Energy Businesses' Use of the Percentage-of-Completion Method
Sales and profits on each percentage-of-completion contract are recorded each month based on the ratio of actual
cumulative costs incurred to the total estimated costs at completion of the contract, multiplied by the total estimated
contract revenue, less cumulative revenues recognized in prior periods (the ‘‘cost-to-cost’’ method). The impact of
revisions of contract estimates, which may result from contract modifications, performance or other reasons, are
recognized on a cumulative catch-up basis in the period in which the revisions are made. The Clean Energy
Businesses were classified as held for sale as of December 31, 2022. See "Assets and Liabilities Held for Sale" in
Note A and Note X.
(Millions of Dollars)
Beginning balance as of January 1,
Additions (c)
Subtractions (c)
Ending balance as of December 31,
2022
2021
2020
Unbilled
contract
revenue
(a)
Unearned
revenue
(b)
Unbilled
contract
revenue
(a)
Unearned
revenue
(b)
Unbilled
contract
revenue
(a)
Unearned
revenue
(b)
$35
324
279
$80
$7
—
4 (d)
$3
$11
242
218
$35
$41
—
34 (d)
$7
$29
88
106
$11
$17
31
7
$41
(d)
(a) Unbilled contract revenue represents accumulated incurred costs and earned profits on contracts (revenue arrangements), which have been
recorded as revenue, but have not yet been billed to customers, and which represent contract assets as defined in Topic 606. Substantially
all accrued unbilled contract revenue is expected to be collected within one year. Unbilled contract revenue arises from the cost-to-cost
method of revenue recognition. Unbilled contract revenue from fixed-price type contracts is converted to billed receivables when amounts
are invoiced to customers according to contractual billing terms, which generally occur when deliveries or other performance milestones are
completed.
(b) Unearned revenue represents a liability for billings to customers in excess of earned revenue, which are contract liabilities as defined in
Topic 606.
(c) Additions for unbilled contract revenue and subtractions for unearned revenue represent additional revenue earned. Additions for unearned
revenue and subtractions for unbilled contract revenue represent billings. Activity also includes appropriate balance sheet classification for
the period.
(d) Of the subtractions from unearned revenue, $4 million, $34 million and $7 million were included in the balances as of January 1, 2022,
2021, and 2020, respectively.
As of December 31, 2022, the aggregate amount of the remaining fixed performance obligations of the Clean
Energy Businesses under contracts with customers for energy services is $89 million, of which $51 million will be
recognized within the next two years, and the remaining $38 million will be recognized pursuant to long-term service
and maintenance agreements. The Clean Energy Businesses were classified as held for sale as of December 31,
2022. See "Assets and Liabilities Held for Sale" in Note A and Note X.
Utilities' Assessment of Late Payment Charges
In March 2020, the Utilities began suspending new late payment charges and certain other fees for all customers.
The Utilities also began providing payment extensions for all customers that were scheduled to be disconnected
prior to the start of the COVID-19 pandemic. In November 2021, the NYSPSC issued an order establishing a
surcharge recovery mechanism for CECONY to collect, commencing December 1, 2021 through December 31,
2022, $43 million and $7 million for electric and gas, respectively, of late payment charges and fees that were not
billed for the year ended December 31, 2020. In April 2022, the NYSPSC approved the October 2021 O&R NY joint
proposal for new electric and gas rate plans for the three-year period from January 2022 through December 2024
that includes certain COVID-19 provisions, such as: recovery of 2020 late payment charges over three years;
174
CON EDISON ANNUAL REPORT 2022
reconciliation of late payment charges to amounts reflected in rates for years 2021 through 2024; and reconciliation
of write-offs of customer accounts receivable balances to amounts reflected in rates from January 1, 2020 through
December 31, 2024. CECONY resumed late payment charges for commercial and residential customers who have
not experienced a change in financial circumstances due to the COVID-19 pandemic in September 2021 and
October 2021, respectively. O&R resumed late payment charges for commercial and residential customers who
have not experienced a change in financial circumstances due to the COVID-19 pandemic in October 2021. See
"COVID-19 Regulatory Matters" in Note B.
Note N – Current Expected Credit Losses
Allowance for Uncollectible Accounts
The Utilities’ “Account receivable – customers” balance consists of utility bills due (bills are generally due the month
following billing) from customers who have energy delivered, generated, or services provided by the Utilities. The
balance also reflects the Utilities’ purchase of receivables from energy service companies to support the retail
choice programs.
“Other receivables” balance generally reflects costs billed by the Utilities for goods and services provided to external
parties, such as accommodation work for private parties and certain governmental entities, real estate rental and
pole attachments.
The Clean Energy Businesses’ customer accounts receivable balance generally reflects the management of energy
supply assets, energy-efficiency services to government and commercial customers, and the engineering,
procurement, and construction services of renewable energy projects. The Clean Energy Businesses calculate an
allowance for uncollectible accounts related to their energy services customers based on an aging and customer-
specific analysis. The amount of such reserves was not material at December 31, 2022 and December 31, 2021.
The Clean Energy Businesses were classified as held for sale as of December 31, 2022. See "Assets and Liabilities
Held for Sale" in Note A and Note X.
The Companies develop expected loss estimates using past events data and consider current conditions and future
reasonable and supportable forecasts. Changes to the Utilities’ reserve balances that result in write-offs of customer
accounts receivable balances above existing rate allowances are not reflected in rates during the term of the current
rate plans. For the Utilities’ customer accounts receivable allowance for uncollectible accounts, past events
considered include write-offs relative to customer accounts receivable; current conditions include macro-and micro-
economic conditions related to trends in the local economy, bankruptcy rates and aged customer accounts
receivable balances, among other factors; and forecasts about the future include assumptions related to the level of
write-offs and recoveries. Generally, the Utilities write off customer accounts receivable as uncollectible 90 days
after the account is turned off for non-payment, or the account is closed during the collection process. See
"COVID-19 Regulatory Matters" in Note B.
Other receivables allowance for uncollectible accounts is calculated based on a historical average of collections
relative to total other receivables, including current receivables. Current macro- and micro-economic conditions are
also considered when calculating the current reserve. Probable outcomes of pending litigation, whether favorable or
unfavorable to the Companies, are also included in the consideration.
Starting in 2020, the potential economic impact of the COVID-19 pandemic was also considered in forward-looking
projections related to write-off and recovery rates and resulted in increases to the allowance for uncollectible
accounts. The increases to the allowance for customer uncollectible accounts for Con Edison and CECONY were
$5 million and $10 million, respectively, for the year ended December 31, 2022. The increases to the allowance for
uncollectible accounts for Con Edison and CECONY were $169 million and $166 million for the year ended
December 31, 2021.
Customer accounts receivable and the associated allowance for uncollectible accounts are included in the line
“Accounts receivable – customers” on the Companies’ consolidated balance sheets. Other receivables and the
associated allowance for uncollectible accounts are included in “Other receivables” on the consolidated balance
sheets.
The table below presents a rollforward by major portfolio segment type for the years ended December 31, 2022
and 2021:
CON EDISON ANNUAL REPORT 2022
175
For the Year Ended December 31,
Con Edison
CECONY
Accounts receivable
- customers
Other receivables
Accounts receivable
- customers
Other receivables
2022
2021
2022
2021
2022
2021
2022
2021
$317
17
(103)
91
$322
$148
14
(91)
246
$317
$22
—
(6)
(6)
$10
$7
1
(2)
16
$22
$304
16
(94)
88
$314
$138
12
(86)
240
$304
$19
—
(4)
(8)
$7
$4
1
(1)
15
$19
(Millions of Dollars)
Allowance for credit losses
Beginning Balance at January 1,
Recoveries
Write-offs
Reserve adjustments
Ending Balance December 31,
176
CON EDISON ANNUAL REPORT 2022
Note O – Stock-Based Compensation
The Companies may compensate employees and directors with, among other things, stock options, stock units,
restricted stock units and contributions to the stock purchase plan. The Long Term Incentive Plan, which was
approved by Con Edison’s shareholders in 2003 (2003 LTIP), and the Long Term Incentive Plan, which was
approved by Con Edison’s shareholders in 2013 (2013 LTIP), are collectively referred to herein as the LTIP. The
LTIP provides for, among other things, awards to employees of restricted stock units and stock options and, to
Con Edison’s non-employee directors, stock units. Existing awards under the 2003 LTIP continue in effect, however
no new awards may be issued under the 2003 LTIP. The 2013 LTIP provides for awards for up to five million shares
of common stock.
During the years ended December 31, 2022, 2021, and 2020, equity awards were granted under the 2013 LTIP.
Shares of Con Edison common stock used to satisfy the Companies’ obligations with respect to stock-based
compensation may be new shares (authorized, but unissued) or treasury shares (existing treasury shares or shares
purchased in the open market). The shares used during the year ended December 31, 2022 were new shares. The
Companies intend to use new shares to fulfill their stock-based compensation obligations for 2023.
The Companies recognized stock-based compensation expense using a fair value measurement method. The
following table summarizes stock-based compensation expense recognized by the Companies in the years ended
December 31, 2022, 2021 and 2020:
(Millions of Dollars)
Performance-based restricted stock
Time-based restricted stock
Non-employee director deferred stock compensation
Stock purchase plan
Total
Income tax benefit
Con Edison
CECONY
2022
$52
2
3
7
$64
$18
2021
$23
2
3
7
$35
$10
2020
$7
1
2
7
$17
$5
2022
$43
2
3
6
$54
$15
2021
$19
2
3
7
$31
$9
2020
$6
1
2
7
$16
$4
Restricted Stock and Stock Units
Restricted stock and stock unit awards under the LTIP have been made as follows: (i) awards that provide for
adjustment of the number of units (performance-restricted stock units or Performance RSUs) to certain officers and
employees; (ii) time-based awards to certain officers and employees; and (iii) awards to non-employee directors.
Restricted stock and stock units awarded represent the right to receive, upon vesting, shares of Con Edison
common stock, or, except for units awarded under the directors’ plan, the cash value of shares or a combination
thereof.
The number of units in each annual Performance RSU award is subject to adjustment as follows: (i) 50 percent of
the units awarded will be multiplied by a factor that may range from 0 to 200 percent, based on Con Edison’s total
shareholder return relative to a specified peer group during a specified performance period (the TSR portion); and
(ii) 50 percent of the units awarded will be multiplied by factors that may range from 0 to 200 percent, based on
determinations made in connection with the Companies’ annual incentive plans or, with respect to certain executive
officers, actual performance as compared to certain performance measures during a specified performance period
(the non-TSR portion). Performance RSU awards generally vest upon completion of the performance period.
Performance against the established targets is recomputed each reporting period as of the earlier of the reporting
date and the vesting date. The TSR portion applies a Monte Carlo simulation model, and the non-TSR portion is the
product of the market price at the end of the period and the average non-TSR determination over the vesting period.
Performance RSUs are “liability awards” because each Performance RSU represents the right to receive, upon
vesting, one share of Con Edison common stock, the cash value of a share or a combination thereof. As such,
changes in the fair value of the Performance RSUs are reflected in net income. The assumptions used to calculate
the fair value of the awards were as follows:
CON EDISON ANNUAL REPORT 2022
177
Risk-free interest rate (a)
Expected term (b)
Expected share price volatility (c)
2022
2021
2020
4.41% - 4.73%
0.39% - 0.73%
0.10% -0.13%
3 years
3 years
3 years
19.65% - 21.77% 17.25% - 31.42% 30.16% - 40.95%
(a) The risk-free rate is based on the U.S. Treasury zero-coupon yield curve.
(b) The expected term of the Performance RSUs equals the vesting period. The Companies do not expect significant forfeitures to occur.
(c) Based on historical experience. The Companies would reevaluate this assumption if market conditions or business developments would
reasonably indicate that future volatility might differ materially from historical experience.
A summary of changes in the status of the Performance RSUs’ TSR and non-TSR portions during the year ended
December 31, 2022 is as follows:
Non-vested at December 31, 2021
Granted
Vested
Forfeited
Non-vested at December 31, 2022
Units
984,728
231,600
(320,821)
(30,416)
865,091
Con Edison
Weighted Average Grant Date
Fair Value (a)
TSR
Portion (b)
Non-TSR
Portion (c)
$72.67
89.90
64.59
80.08
$80.02
$79.14
83.76
80.17
77.73
$80.04
Units
744,278
172,003
(240,022)
(28,433)
647,826
CECONY
Weighted Average Grant Date
Fair Value (a)
TSR
Portion (b)
Non-TSR
Portion (c)
$72.71
90.25
65.04
80.04
$79.89
$79.20
84.32
80.45
77.68
$80.16
(a) The TSR and non-TSR Portions each account for 50 percent of the awards’ value.
(b) Fair value is determined using the Monte Carlo simulation described above. Weighted average grant date fair value does not reflect any
accrual or payment of dividends prior to vesting.
(c) Fair value is determined using the market price of one share of Con Edison common stock on the grant date. The market price has not been
discounted to reflect that dividends do not accrue and are not payable on Performance RSUs until vesting.
The total expense to be recognized by Con Edison in future periods for unvested Performance RSUs outstanding at
December 31, 2022 is $37 million, including $30 million for CECONY, and is expected to be recognized over a
weighted average period of one year for both Con Edison and CECONY. Con Edison and CECONY paid cash of
$10 million and $9 million in 2022, $8 million and $7 million in 2021, and $21 million and $18 million in 2020,
respectively, to settle vested Performance RSUs.
In accordance with the accounting rules for stock compensation, for time-based awards, the Companies are
accruing a liability and recognizing compensation expense based on the market value of a common share
throughout the vesting period. The vesting period for awards is three years and is based on the officer or
employee’s continuous service to Con Edison. Prior to vesting, the awards are subject to forfeiture in whole or in
part under certain circumstances. The awards are “liability awards” because each restricted stock unit represents
the right to receive, upon vesting, one share of Con Edison common stock, the cash value of a share or a
combination thereof. As such, prior to vesting, changes in the fair value of the units are reflected in net income.
A summary of changes in the status of time-based awards during the year ended December 31, 2022 is as follows:
Non-vested at December 31, 2021
Granted
Vested
Forfeited
Non-vested at December 31, 2022
Con Edison
CECONY
Units
61,620
149,650
(22,450)
(8,232)
180,588
Weighted Average
Grant Date
Fair Value
$79.68
86.59
84.81
81.51
$84.69
Units
57,870
118,458
(21,200)
(7,713)
147,415
Weighted Average
Grant Date
Fair Value
$79.70
87.46
84.81
81.54
$85.10
The total expense to be recognized by Con Edison in future periods for unvested time-based awards outstanding at
December 31, 2022 is $9 million, including $8 million for CECONY, and is expected to be recognized over a
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CON EDISON ANNUAL REPORT 2022
weighted average period of one year. Con Edison and CECONY paid cash of $2 million in 2022, and $1 million in
2021 and 2020, to settle vested time-based awards.
Under the LTIP, each non-employee director receives stock units, which are deferred until the director’s separation
from service or another date specified by the director. Each director may also elect to defer all or a portion of their
cash compensation into additional stock units, which are deferred until the director’s termination of service or
another date specified by the director. Non-employee directors’ stock units issued under the LTIP are considered
“equity awards,” because they may only be settled in shares. Directors immediately vest in units issued to them.
The fair value of the units is determined using the closing price of Con Edison’s common stock on the business day
immediately preceding the date of issue. In the year ended December 31, 2022, approximately 31,000 units were
issued at a weighted average grant date price of $93.60.
Stock Purchase Plan
The Stock Purchase Plan, which was approved by shareholders in 2004 and 2014, provides for the Companies to
contribute up to $1 for each $9 invested by their directors, officers or employees to purchase Con Edison common
stock under the plan. Eligible participants may invest up to $25,000 during any calendar year (subject to an
additional limitation for officers and employees of not more than 20 percent of their pay). Dividends paid on shares
held under the plan are reinvested in additional shares unless otherwise directed by the participant.
Participants in the plan immediately vest in shares purchased by them under the plan. Prior to September 1, 2020,
the fair value of the shares of Con Edison common stock purchased under the plan was calculated using the
average of the high and low composite sale prices at which shares were traded at the New York Stock Exchange on
the trading day immediately preceding such purchase dates. During 2020, the plan was amended and as a result of
the amendment, the fair value of the shares of Con Edison common stock purchased after September 1, 2020
under the plan was calculated using the closing price at which shares were traded on the New York Stock Exchange
on the last business day of the month for all shares purchased during the month. During 2022, 2021 and 2020,
744,932, 957,866 and 836,984 shares were purchased under the Stock Purchase Plan at a weighted average price
of $91.59, $73.38 and $79.82 per share, respectively.
CON EDISON ANNUAL REPORT 2022
179
Note P – Financial Information by Business Segment
The business segments of each of the Companies, which are its operating segments, were determined based on
management’s reporting and decision-making requirements in accordance with the accounting rules for segment
reporting.
Con Edison’s principal business segments are CECONY’s regulated utility activities, O&R’s regulated utility activities,
the Clean Energy Businesses and Con Edison Transmission. CECONY’s principal business segments are its
regulated electric, gas and steam utility activities.
All revenues of these business segments are from customers located in the United States of America. Also, all assets
of the business segments are located in the United States of America. The accounting policies of the segments are
the same as those described in Note A.
Common services shared by the business segments are assigned directly or allocated based on various cost factors,
depending on the nature of the service provided.
The financial data for the business segments are as follows:
As of and for the Year
Ended December 31, 2022
(Millions of Dollars)
Operating
revenues
Inter-
segment
revenues
Depreciation
and
amortization
Operating
income
Other
Income
(deductions)
Interest
charges
Income
taxes on
operating
income
(a)
Total
assets
Capital
expendit
ures
CECONY
Electric
Gas
Steam
Consolidation adjustments
Total CECONY
O&R
Electric
Gas
Other
Total O&R
Clean Energy Businesses
Con Edison Transmission
Other (c)
$9,751
2,924
593
—
$13,268
$773
312
—
$1,085
$1,319
4
(6)
Total Con Edison
$15,670
$19
8
76
(103)
$—
$—
—
—
$—
$—
—
—
$—
$1,315
$1,496
$259
367
96
—
660
(21)
—
52
21
—
$582
198
42
—
$138 $39,153
141
(18)
—
15,361
2,931
—
$2,522
1,128
108
—
$1,778
$2,135
$332
$822
$261 $57,445
$3,758
$71
27
—
$98
$178
1
1
$94
42
—
$136
$368
(10)
(5)
$2,056
$2,624
$17
6
—
$23
$3
19
(51)
$326
$29
17
—
$46
$(35)
5
14
$17
$2,247
8
—
$25
$84
1
51
1,264
—
$3,511
$7,224 (b)
314
571
$167
76
—
$243
$399
65
—
$852
$422 $69,065
$4,465
As of and for the Year
Ended December 31, 2021
(Millions of Dollars)
Operating
revenues
Inter-
segment
revenues
Depreciation
and
amortization
Operating
income
Other
Income
(deductions)
Interest
charges
Income
taxes on
operating
income
(a)
Total
assets
Capital
expendit
ures
CECONY
Electric
Gas
Steam
Consolidation adjustments
Total CECONY
O&R
Electric
Gas
Other
Total O&R
Clean Energy Businesses
Con Edison Transmission
Other (c)
$8,806
2,378
532
—
$11,716
$681
260
—
$941
$1,022
4
(7)
Total Con Edison
$13,676
$18
8
74
(100)
$—
$—
—
—
$—
$—
—
—
$—
180
CON EDISON ANNUAL REPORT 2022
$1,286
$1,802
326
93
—
646
12
—
$(84)
(16)
(8)
—
$542
179
41
—
$151 $36,260
110
13,748
(9)
—
2,647
—
$2,189
1,126
103
—
$1,705
$2,460
$(108)
$762
$252 $52,655
$3,418
$69
26
—
$95
$231
1
—
$100
50
—
$150
$236
(16)
(4)
$(8)
(4)
—
$(12)
$(10)
(407)
(1)
$27
15
—
$42
$68
9
24
$13
$2,123
8
—
$21
$44
3
20
1,169
—
$3,292
$6,554 (b)
249
366
$147
70
—
$217
$298
31
—
$2,032
$2,826
$(538)
$905
$340 $63,116
$3,964
As of and for the Year
Ended December 31, 2020
(Millions of Dollars)
Operating
revenues
Inter-
segment
revenues
Depreciation
and
amortization
Operating
income
Other
Income
(deductions)
Interest
charges
Income
taxes on
operating
income
(a)
Total
assets
Capital
expendit
ures
CECONY
Electric
Gas
Steam
Consolidation adjustments
Total CECONY
O&R
Electric
Gas
Other
Total O&R
Clean Energy Businesses
Con Edison Transmission
Other (c)
$8,103
2,036
508
—
$10,647
$629
233
—
$862
$736
4
(3)
Total Con Edison
$12,246
$18
7
74
(99)
$—
$—
—
—
$—
$—
—
—
$—
$1,214
$1,731
$(134)
294
90
—
574
5
—
(25)
(12)
—
$535
164
40
—
$130 $35,673
102
(14)
—
12,678
2,616
—
$2,080
1,044
122
—
$1,598
$2,310
$(171)
$739
$218 $50,967
$3,246
$65
25
—
$90
$231
1
—
$99
48
—
$147
$215
(8) $
(10)
$(10)
(4)
—
$(14)
$4
(215)
(5)
$26
15
—
$41
$196
18
25
$13
$2,097
8
—
1,150
—
$21
$3,247
$(43)
$6,848 (b)
—
(3)
1,348
485
$159
61
—
$220
$616
3
—
$1,920
$2,654
$(401)
$1,019
$193 $62,895
$4,085
(a) For Con Edison, the income tax expense/(benefit) on non-operating income was $76 million, $(150) million and $(103) million in 2022, 2021
and 2020, respectively. For CECONY, the income tax expense/(benefit) on non-operating income was $(6) million, $(6) million and $(3)
million in 2022, 2021 and 2020, respectively.
(b) The Clean Energy Businesses were classified as held for sale as of December 31, 2022. See "Assets and Liabilities Held for Sale" in Note A
and Note X.
(c) Parent company and consolidation adjustments. Other does not represent a business segment.
CON EDISON ANNUAL REPORT 2022
181
Note Q – Derivative Instruments and Hedging Activities
Con Edison’s subsidiaries hedge market price fluctuations associated with physical purchases and sales of
electricity, natural gas, steam and, to a lesser extent, refined fuels by using derivative instruments including futures,
forwards, basis swaps, options, transmission congestion contracts and financial transmission rights contracts.
These are economic hedges, for which the Utilities and the Clean Energy Business do not elect hedge accounting.
The Companies use economic hedges to manage commodity price risk in accordance with provisions set by state
regulators. The volume of hedging activity at the Utilities is dependent upon the forecasted volume of physical
commodity supply to meet customer needs, and program costs or benefits are recovered from or credited to full-
service customers, respectively. See "Recoverable Energy Costs" in Note A. The Clean Energy Businesses use
interest rate swaps to manage the risks associated with interest rates related to outstanding and expected future
debt issuances and borrowings. Derivatives are recognized on the consolidated balance sheet at fair value (see
Note R), unless an exception is available under the accounting rules for derivatives and hedging. Qualifying
derivative contracts that have been designated as normal purchases or normal sales contracts are not reported at
fair value under the accounting rules. The Clean Energy Businesses were classified as held for sale as of
December 31, 2022. See "Assets and Liabilities Held for Sale" in Note A and Note X.
The fair values of the Companies’ derivatives, including the offsetting of assets and liabilities, on the consolidated
balance sheet at December 31, 2022 and 2021 were:
(Millions of Dollars)
2022
2021
Gross
Amounts of
Recognized
Assets/
(Liabilities)
Gross
Amounts
Offset
Net Amounts
of Assets/
(Liabilities)
(a)
Gross
Amounts of
Recognized
Assets/
(Liabilities)
Gross
Amounts
Offset
Net Amounts
of Assets/
(Liabilities)
(a)
Balance Sheet Location
Con Edison
Fair value of derivative assets
Current
Noncurrent
Total fair value of derivative assets held
and used
Current - assets held for sale (e)
Noncurrent - assets held for sale (e)
$378
193
$(332)
(108)
$46 (b)
85
$285
$(158)
90
(13)
$571
$(440)
$131
$375
$(171)
93
83
(8)
11
85 (c)
94 (c)
—
—
—
—
$127 (b)(d)
77
$204
—
—
$204
Total fair value of derivative assets
$747
$(437)
$310
$375
$(171)
Fair value of derivative liabilities
Current
Noncurrent
Total fair value of derivative liabilities held
and used
Current - liabilities held for sale (e)
Noncurrent - liabilities held for sale (e)
$(198)
(49)
$166
36
$(247)
$202
(31)
(3)
6
(8)
Total fair value of derivative liabilities
$(281)
$200
Net fair value derivative assets/(liabilities)
$466
$(237)
CECONY
Fair value of derivative assets
Current
Noncurrent
Total fair value of derivative assets
Fair value of derivative liabilities
Current
Noncurrent
Total fair value of derivative liabilities
Net fair value derivative assets/(liabilities)
$350
176
$526
$(189)
(43)
$(232)
$294
$(312)
(96)
$(408)
$160
34
$194
($214)
$(32) (b)
(13)
$(45)
(25)
(11)
$(81)
$229
$38 (b)
80
$118
$(29)
(9)
$(38)
$80
$(289)
(94)
$137
10
$(152)
(84) (d)
$(383)
$147
$(236)
—
—
$(383)
$(8)
$135
71
$206
$(131)
(50)
$(181)
$25
—
—
$147
$(24)
$(64)
(15)
$(79)
$43
10
$53
$(26)
—
—
$(236)
$(32)
$71 (b)
56
$127
$(88)
(40)
$(128)
$(1)
(a) Derivative instruments and collateral were offset on the consolidated balance sheet as applicable under the accounting rules. The
Companies enter into master agreements for their commodity derivatives. These agreements typically provide offset in the event of contract
termination. In such case, generally the non-defaulting party’s payable will be offset by the defaulting party’s payable. The non-defaulting
party will customarily notify the defaulting party within a specific time period and come to an agreement on the early termination amount.
182
CON EDISON ANNUAL REPORT 2022
(b) At December 31, 2022, margin deposits for Con Edison and CECONY of $13 million were classified as derivative assets, and ($(10) million
and $(6) million, respectively) were classified as derivative liabilities on the consolidated balance sheet, but not included in the table. At
December 31, 2021, margin deposits for Con Edison and CECONY ($1 million and an immaterial amount, respectively) were classified as
derivative assets on the consolidated balance sheet, but not included in the table. Margin is collateral, typically cash, that the holder of a
derivative instrument is required to deposit in order to transact on an exchange and to cover its potential losses with its broker or the
exchange.
Includes amounts for interest rate swaps of $31 million in current assets and $75 million in noncurrent assets. At December 31, 2022, the
Clean Energy Businesses had interest rate swaps with notional amounts of $982 million. The expiration dates of the swaps range from
2025-2041.
Includes amounts for interest rate swaps of $4 million in noncurrent assets, $(20) million in current liabilities and $(38) million in noncurrent
liabilities. At December 31, 2021, the Clean Energy Businesses had interest rate swaps with notional amounts of $1,031 million. The
expiration dates of the swaps ranged from 2025-2041.
(d)
(c)
(e) Amounts represent derivative assets and liabilities included in current assets and current liabilities held for sale, respectively, on Con
Edison's consolidated balance sheet as of December 31, 2022. See "Assets and Liabilities Held for Sale" in Note A and Note X.
The Utilities generally recover their prudently incurred fuel, purchased power and gas costs, including hedging gains
and losses, in accordance with rate provisions approved by the applicable state utility regulators. See "Recoverable
Energy Costs" in Note A. In accordance with the accounting rules for regulated operations, the Utilities record a
regulatory asset or regulatory liability to defer recognition of unrealized gains and losses on their electric and gas
derivatives. As gains and losses are realized in future periods, they will be recognized as purchased power, gas and
fuel costs in the Companies’ consolidated income statements.
The Clean Energy Businesses record realized and unrealized gains and losses on their derivative contracts in gas
purchased for resale and non-utility revenue in the reporting period in which they occur. The Clean Energy
Businesses record changes in the fair value of their interest rate swaps in other interest expense at the end of each
reporting period. Management believes that these derivative instruments represent economic hedges that mitigate
exposure to fluctuations in commodity prices and interest rates. The Clean Energy Businesses were classified as
held for sale as of December 31, 2022. See "Assets and Liabilities Held for Sale" in Note A and Note X.
The following table presents the realized and unrealized gains or losses on derivatives that have been deferred or
recognized in earnings for the years ended December 31, 2022 and 2021:
Con Edison
CECONY
(Millions of Dollars)
Balance Sheet Location
2022
2021
Pre-tax gains/(losses) deferred in accordance with accounting rules for regulated operations:
Current
Noncurrent
Deferred derivative gains
Deferred derivative gains
Total deferred gains/(losses)
Current
Current
Deferred derivative losses
Recoverable energy costs
Noncurrent
Deferred derivative losses
Total deferred gains/(losses)
Net deferred gains/(losses)
Pre-tax gain/(loss) recognized in income
Income Statement Location
Gas purchased for resale
Non-utility revenue
Other operations and maintenance
expense
Other interest expense
Total pre-tax gain/(loss) recognized in income
$168
83
$251
$(43)
408
19
$384
$635
$5
—
4
159 (a)
$168
$134
57
$191
$49
3
70
$122
$313
$18
3
5
52
$78
2022
$155
75
$230
$(44)
372
19
$347
$577
$—
—
4
—
$4
2021
$124
51
$175
$43
—
66
$109
$284
$—
—
5
—
$5
(a) Comprised of amounts related to interest rate swaps of the Clean Energy Businesses. The Clean Energy Businesses were held for sale
as of December 31, 2022. See "Assets and Liabilities Held for Sale" in Note A and Note X.
The following table presents the hedged volume of Con Edison’s and CECONY’s commodity derivative transactions
at December 31, 2022:
CON EDISON ANNUAL REPORT 2022
183
Con Edison
CECONY
Electric Energy
(MWh) (a)(b)
33,546,670
31,567,400
Capacity (MW) (a)
46,116
30,675
Natural Gas
(Dt) (a)(b)
290,398,144
272,790,000
Refined Fuels
(gallons)
168,000
168,000
(a) Volumes are reported net of long and short positions, except natural gas collars where the volumes of long positions are reported.
(b) Excludes electric congestion and gas basis swap contracts which are associated with electric and gas contracts and hedged volumes.
(c)
Included are electric energy, capacity, and natural gas ((240) MWh, 8,616 MW, and 3,518,144 Dt, respectively) volumes of the Clean
Energy Businesses.
The Companies are exposed to credit risk related to transactions entered into primarily for the various energy
supply and hedging activities by the Utilities and the Clean Energy Businesses. Credit risk relates to the loss that
may result from a counterparty’s nonperformance. The Companies use credit policies to manage this risk, including
an established credit approval process, monitoring of counterparty limits, netting provisions within agreements,
collateral or prepayment arrangements, credit insurance and credit default swaps. The Companies measure credit
risk exposure as the replacement cost for open energy commodity and derivative positions plus amounts owed from
counterparties for settled transactions. The replacement cost of open positions represents unrealized gains, net of
any unrealized losses where the Companies have a legally enforceable right to offset.
At December 31, 2022, Con Edison and CECONY had $703 million and $357 million of credit exposure in
connection with open energy supply net receivables and hedging activities, net of collateral, respectively. Con
Edison’s net credit exposure consisted of $174 million with independent system operators and $41 million with non-
investment grade/non-rated counterparties (which amounts related entirely to the Clean Energy Businesses), and
$353 million with investment-grade counterparties and $133 million with commodity exchange brokers of which
$50 million and $50 million, respectively, related to the Clean Energy Businesses. The Clean Energy Businesses
were classified as held for sale as of December 31, 2022; see "Assets and Liabilities Held for Sale" in Note A and
Note X. CECONY’s net credit exposure consisted of $83 million with commodity exchange brokers and $274 million
with investment-grade counterparties.
The collateral requirements associated with, and settlement of, derivative transactions are included in net cash
flows from operating activities in the Companies’ consolidated statement of cash flows. Most derivative instrument
contracts contain provisions that may require a party to provide collateral on its derivative instruments that are in a
net liability position. The amount of collateral to be provided will depend on the fair value of the derivative
instruments and the party’s credit ratings.
The following table presents the aggregate fair value of the Companies’ derivative instruments with credit-risk-
related contingent features that are in a net liability position, the collateral posted for such positions and the
additional collateral that would have been required to be posted had the lowest applicable credit rating been
reduced one level and to below investment grade at December 31, 2022:
(Millions of Dollars)
Aggregate fair value – net liabilities
Collateral posted
Additional collateral (b) (downgrade one level from current ratings)
Additional collateral (b)(c) (downgrade to below investment grade from current ratings)
Con Edison (a)
CECONY (a)
$157
70
65
138
$86
70
15
67
(a) Non-derivative transactions for the purchase and sale of electricity and gas and qualifying derivative instruments, which have been
designated as normal purchases or normal sales, are excluded from the table. These transactions primarily include purchases of electricity
from independent system operators. In the event the Utilities and the Clean Energy Businesses were no longer extended unsecured credit
for such purchases, the Companies would be required to post additional collateral of $9 million at December 31, 2022. For certain other
such non-derivative transactions, the Companies could be required to post collateral under certain circumstances, including in the event
counterparties had reasonable grounds for insecurity.
(b) The Companies measure the collateral requirements by taking into consideration the fair value amounts of derivative instruments that
contain credit-risk-related contingent features that are in a net liability position plus amounts owed to counterparties for settled transactions
and amounts required by counterparties for minimum financial security. The fair value amounts represent unrealized losses, net of any
unrealized gains where the Companies have a legally enforceable right to offset.
(c) Derivative instruments that are net assets have been excluded from the table. At December 31, 2022, if Con Edison had been downgraded
to below investment grade, it would have been required to post additional collateral for such derivative instruments of $115 million.
184
CON EDISON ANNUAL REPORT 2022
Note R – Fair Value Measurements
The accounting rules for fair value measurements and disclosures define fair value as the price that would be
received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the
measurement date in a principal or most advantageous market. Fair value is a market-based measurement that is
determined based on inputs, which refer broadly to assumptions that market participants use in pricing assets or
liabilities. These inputs can be readily observable, market corroborated, or generally unobservable firm inputs. The
Companies often make certain assumptions that market participants would use in pricing the asset or liability,
including assumptions about risk, and the risks inherent in the inputs to valuation techniques. The Companies use
valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs.
The accounting rules for fair value measurements and disclosures established a fair value hierarchy, which
prioritizes the inputs to valuation techniques used to measure fair value in three broad levels. The rules require that
assets and liabilities be classified in their entirety based on the level of input that is significant to the fair value
measurement. Assessing the significance of a particular input may require judgment considering factors specific to
the asset or liability, and may affect the valuation of the asset or liability and their placement within the fair value
hierarchy. The Companies classify fair value balances based on the fair value hierarchy defined by the accounting
rules for fair value measurements and disclosures as follows:
•
•
•
Level 1 – Consists of assets or liabilities whose value is based on unadjusted quoted prices in active markets
at the measurement date. An active market is one in which transactions for assets or liabilities occur with
sufficient frequency and volume to provide pricing information on an ongoing basis. This category includes
contracts traded on active exchange markets valued using unadjusted prices quoted directly from the
exchange.
Level 2 – Consists of assets or liabilities valued using industry standard models and based on prices, other
than quoted prices within Level 1, that are either directly or indirectly observable as of the measurement
date. The industry standard models consider observable assumptions including time value, volatility factors
and current market and contractual prices for the underlying commodities, in addition to other economic
measures. This category includes contracts traded on active exchanges or in over-the-counter markets
priced with industry standard models.
Level 3 – Consists of assets or liabilities whose fair value is estimated based on internally developed models
or methodologies using inputs that are generally less readily observable and supported by little, if any,
market activity at the measurement date. Unobservable inputs are developed based on the best available
information and subject to cost benefit constraints. This category includes contracts priced using models that
are internally developed and contracts placed in illiquid markets. It also includes contracts that expire after
the period of time for which quoted prices are available and internal models are used to determine a
significant portion of the value.
For information on the measurement of Con Edison's investment in MVP, which was measured at fair value on a
non-recurring basis, see Note A. Assets and liabilities measured at fair value on a recurring basis for the years
ended December 31, 2022 and 2021 are summarized below.
CON EDISON ANNUAL REPORT 2022
185
(Millions of Dollars)
Level 1 Level 2 Level 3
Adjustment (e) Total Level 1 Level 2 Level 3
Adjustment (e) Total
2022
Netting
2021
Netting
Con Edison
Derivative assets:
Commodity (a)(b)(c)
Commodity held for sale (g)
Interest rate swaps (a)(b)(c)(f)
(g)
Other (a)(b)(d)
Total assets
Derivative liabilities:
$84
$476
6
34
—
437
106
116
$2
31
—
—
$(420)
$142
2
73
—
—
106
553
$95
—
—
492
$527
$732
$33
$(418)
$874
$587
$260
—
4
135
$399
$17
—
—
—
$17
$(171)
$201
—
—
—
—
4
627
$(171)
$832
Commodity (a)(b)(c)
$18
$204
Commodity held for sale (g)
Interest rate swaps (a)(b)(c)(f)
(g)
Total liabilities
CECONY
Derivative assets:
Commodity (a)(b)(c)
Other (a)(b)(d)
Total assets
Derivative liabilities:
8
—
$26
24
—
$228
$83
422
$505
$434
110
$544
Commodity (a)(b)(c)
$18
$198
$16
2
—
$18
$2
—
$2
$8
$(184)
2
—
$(182)
$54
36
—
$90
$33
$266
$28
$(148)
$179
—
$33
57
$323
—
$28
—
57
$(148)
$236
$(388)
$131
—
532
$67
474
$(388)
$663
$541
$138
127
$265
$(180)
$44
$1
$172
$1
—
$1
$8
$(79)
$127
—
601
$(79)
$728
$(53)
$128
(a) The Companies’ policy is to review the fair value hierarchy and recognize transfers into and transfers out of the levels at the end of each
reporting period. Con Edison and CECONY had an immaterial amount of derivative liabilities and $10 million and $9 million of commodity
derivative assets, respectively, transferred from level 3 to level 2 during the year ended December 31, 2022 because of availability of
observable market data due to the decrease in the terms of certain contracts from beyond three years as of September 30, 2022 to less
than three years as of December 31, 2022. Con Edison and CECONY had $1 million of commodity derivative assets and $4 million and
$3 million of commodity derivative liabilities, respectively, transferred from level 3 to level 2 during the year ended December 31, 2021
because of availability of observable market data due to the decrease in the terms of certain contracts from beyond three years as of
September 30, 2021 to less than three years as of December 31, 2021.
(b) Level 2 assets and liabilities include investments held in the deferred compensation plan and/or non-qualified retirement plans, exchange-
traded contracts where there is insufficient market liquidity to warrant inclusion in Level 1, and certain over-the-counter derivative
instruments for electricity, refined products and natural gas. Derivative instruments classified as Level 2 are valued using industry standard
models that incorporate corroborated observable inputs, such as pricing services or prices from similar instruments that trade in liquid
markets, time value and volatility factors.
(c) The accounting rules for fair value measurements and disclosures require consideration of the impact of nonperformance risk (including
credit risk) from a market participant perspective in the measurement of the fair value of assets and liabilities. At December 31, 2022 and
2021, the Companies determined that nonperformance risk would have no material impact on their financial position or results of
operations.
(d) Other assets are comprised of assets such as life insurance contracts within the deferred compensation plan and non-qualified retirement
plans.
(e) Amounts represent the impact of legally-enforceable master netting agreements that allow the Companies to net gain and loss positions
and cash collateral held or placed with the same counterparties.
(f) See Note Q.
(g) Amounts for 2022 represent the Clean Energy Businesses' derivative assets and liabilities included in current assets and current liabilities
held for sale, respectively on Con Edison's consolidated balance sheet as of December 31, 2022. See "Assets and Liabilities Held for Sale"
in Note A and Note X.
The employees in the Companies’ risk management group develop and maintain the Companies’ valuation policies
and procedures for, and verify pricing and fair value valuation of, commodity derivatives and interest rate swaps.
Under the Companies’ policies and procedures, multiple independent sources of information are obtained for
forward price curves used to value commodity derivatives and interest rate swaps. Fair value and changes in fair
value of commodity derivatives and interest rate swaps are reported monthly to the Companies’ risk committees,
comprised of officers and employees of the Companies that oversee energy hedging at the Utilities and the Clean
Energy Businesses. The risk management group reports to the Companies’ Vice President and Treasurer.
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CON EDISON ANNUAL REPORT 2022
Fair Value of Level 3
at December 31, 2022
(Millions of Dollars)
Valuation Techniques
Unobservable Inputs
Range
Con Edison — Commodity
Electricity - Held and Used
Transmission Congestion Contracts/
Financial Transmission Rights - Held
and Used
Total Con Edison - Commodity -
Held and Used
$(15) Discounted Cash Flow Forward capacity prices (a)
$1.42-$16.08 per kW-month
1 Discounted Cash Flow
Inter-zonal forward price curves adjusted
for historical zonal losses (b)
$0.91-$3.03 per MWh
$(14)
Electricity - Held for Sale
$14 Discounted Cash Flow Forward energy prices (a)
$22.00-$187.50 per MWh
Transmission Congestion Contracts/
Financial Transmission Rights - Held
for Sale
Natural Gas - Held for Sale
Total Con Edison - Commodity -
Held for Sale (c)
Total Con Edison — Commodity
CECONY — Commodity
Electricity
10 Discounted Cash Flow Forward capacity prices (a)
$0.96-$5.75 per kW-month
4 Discounted Cash Flow
Inter-zonal forward price curves adjusted
for historical zonal losses (b)
$(12.44)-$195.57 per MWh
1 Discounted Cash Flow Forward natural gas prices (a)
$3.75-$14.51 per Dt
$29
$15
$(7) Discounted Cash Flow Forward capacity prices (a)
$1.42-$16.08 per kW-month
Transmission Congestion Contracts
1 Discounted Cash Flow
Inter-zonal forward price curves adjusted
for historical zonal losses (b)
$0.91-$3.03 per MWh
Total CECONY — Commodity
$(6)
(a) Generally, increases/(decreases) in this input in isolation would result in a higher/(lower) fair value measurement.
(b) Generally, increases/(decreases) in this input in isolation would result in a lower/(higher) fair value measurement.
(c)
Amount represents the Fair Value of Level 3 assets of the Clean Energy Businesses, which were held for sale as of December 31, 2022. See "Assets and
Liabilities Held for Sale" in Note A and Note X.
The table listed below provides a reconciliation of the beginning and ending net balances for assets and liabilities
measured at fair value for the years ended December 31, 2022 and 2021 and classified as Level 3 in the fair value
hierarchy:
(Millions of Dollars)
Beginning balance as of January 1,
Included in earnings
Included in regulatory assets and liabilities
Purchases
Settlements
Changes in level 3 assets and liabilities held for sale (a)
Transfer out of level 3
Ending balance as of December 31,
Con Edison
CECONY
2022
$(11)
(11)
11
—
11
25
(10)
$15
2021
$(19)
(9)
3
6
5
—
3
$(11)
2022
$(7)
(5)
10
—
5
—
(9)
$(6)
2021
$(10)
(3)
1
—
3
—
2
$(7)
(a) Amounts for 2022 represent the net change in the value of level 3 assets and liabilities of the Clean Energy Businesses. The Clean Energy
Businesses were classified as held for sale as of December 31, 2022. See "Assets and Liabilities Held for Sale" in Note A and Note X.
For the Utilities, realized gains and losses on Level 3 commodity derivative assets and liabilities are reported as part
of purchased power, gas and fuel costs. The Utilities generally recover these costs in accordance with rate
provisions approved by the applicable state public utilities regulators. See Note A. Unrealized gains and losses for
commodity derivatives are generally deferred on the consolidated balance sheet in accordance with the accounting
rules for regulated operations.
For the Clean Energy Businesses, realized and unrealized gains and losses on Level 3 commodity derivative assets
and liabilities are reported in non-utility revenues ($26 million gain and $2 million loss) on the consolidated income
statement for the years ended December 31, 2022 and 2021, respectively. The Clean Energy Businesses were
classified as held for sale as of December 31, 2022. See "Assets and Liabilities Held for Sale" in Note A and Note X.
CON EDISON ANNUAL REPORT 2022
187
Note S – Variable Interest Entities
The accounting rules for consolidation address the consolidation of a variable interest entity (VIE) by a business
enterprise that is the primary beneficiary. A VIE is an entity that does not have a sufficient equity investment at risk
to permit it to finance its activities without additional subordinated financial support, or whose equity investors lack
the characteristics of a controlling financial interest. The primary beneficiary is the business enterprise that has the
power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and either
absorbs a significant amount of the VIE’s losses or has the right to receive benefits that could be significant to
the VIE.
The Companies enter into arrangements including leases, partnerships and electricity purchase agreements,
with various entities. As a result of these arrangements, the Companies retain or may retain a variable interest in
these entities.
CECONY
CECONY has an ongoing long-term electricity purchase agreement with Brooklyn Navy Yard Cogeneration
Partners, LP, a potential VIE. In 2022, a request was made of this counterparty for information necessary to
determine whether the entity was a VIE and whether CECONY is the primary beneficiary; however, the information
was not made available. See Note I for information on these electricity purchase agreements; the payments for this
contract constitute CECONY's maximum exposure to loss with respect to the potential VIE.
Clean Energy Businesses
The Clean Energy Businesses were classified as held for sale as of December 31, 2022. See "Assets and Liabilities
Held for Sale" in Note A and Note X.
In June 2021, a subsidiary of the Clean Energy Businesses sold substantially all of its membership interest in a
renewable electric project, and retained an equity interest of $11 million in the project, which is accounted for as an
equity method investment. See Note W. The earnings of the project are determined using the hypothetical
liquidation at book value (HLBV) method of accounting which resulted in a loss of $11 million pre-tax ($8 million
after-tax) for the year ended December 31, 2021. Con Edison is not the primary beneficiary since the power to
direct the activities that most significantly impact the economics of the renewable electric project is not held by the
Clean Energy Businesses.
HLBV Accounting
Con Edison has determined that the use of HLBV accounting is reasonable and appropriate to attribute income and
loss to the tax equity investors. See "Use of Hypothetical Liquidation at Book Value" in Note A.
CED Nevada Virginia
In February 2021, a subsidiary of the Clean Energy Businesses entered into an agreement relating to certain
projects (CED Nevada Virginia) with a noncontrolling tax equity investor to which a percentage of earnings, tax
attributes and cash flows will be allocated. CED Nevada Virginia is a consolidated entity in which Con Edison has
less than a 100 percent membership interest. Con Edison is the primary beneficiary since the power to direct the
activities that most significantly impact the economics of CED Nevada Virginia is held by the Clean Energy
Businesses. The HLBV method of accounting resulted in income/(loss) for the years ended December 31, 2022 and
2021, as follows:
(Millions of Dollars)
Tax equity investor
After tax
Con Edison
After tax
2022
$(49)
(37)
41
31
2021
$(158)
(119)
155
117
Tax Equity Projects
In 2018, the Clean Energy Businesses completed its acquisition of Sempra Solar Holdings, LLC. Included in the
acquisition were certain operating projects (Tax Equity Projects) with a noncontrolling tax equity investor to which a
188
CON EDISON ANNUAL REPORT 2022
percentage of earnings, tax attributes and cash flows are allocated. The Tax Equity Projects are consolidated
entities in which Con Edison has less than a 100 percent membership interest. Con Edison is the primary
beneficiary since the power to direct the activities that most significantly impact the economics of the Tax Equity
Projects is held by the Clean Energy Businesses. Electricity generated by the Tax Equity Projects is sold to utilities
and municipalities pursuant to long-term power purchase agreements. The HLBV method of accounting resulted in
income/(loss) for the years ended December 31, 2022 and 2021, as follows:
(Millions of Dollars)
Tax equity investor
After tax
Con Edison
After tax
2022
$(11)
(8)
51
38
2021
$6
4
30
24
At December 31, 2022 and 2021, Con Edison’s consolidated balance sheet included the following amounts
associated with its VIEs:
(Millions of Dollars)
Assets held for sale (a)
Non-utility property, less accumulated
depreciation (f)(g)
Other assets
Total assets (a)
Liabilities held for sale (b)
Other liabilities
Total liabilities (b)
Tax Equity Projects
Great Valley Solar
(c)(d)
Copper Mountain -
Mesquite Solar
(c)(e)
CED Nevada
Virginia (c)(h)
CED Nevada
Virginia (c)(h)
2022
$305
—
—
$305
20
—
$20
2021
$—
275
37
$312
—
14
$14
2022
$580
—
—
$580
81
—
$81
2021
$—
431
167
$598
—
74
$74
2022
$686
—
—
$686
331
—
$331
2021
$—
643
55
$698
—
315
$315
(a) The assets of the Tax Equity Projects and CED Nevada Virginia represent assets of a consolidated VIE that can be used only to settle
obligations of the consolidated VIE. Amounts shown for 2022 are included in current assets held for sale on Con Edison's consolidated
balance sheet as of December 31, 2022. See "Assets and Liabilities Held for Sale" in Note A and Note X.
(b) The liabilities of the Tax Equity Projects and CED Nevada Virginia represent liabilities of a consolidated VIE for which creditors do not have
recourse to the general credit of the primary beneficiary. Amounts shown for 2022 are included in current liabilities held for sale on Con
Edison's consolidated balance sheet as of December 31, 2022. See "Assets and Liabilities Held for Sale" in Note A and Note X.
(c) Con Edison did not provide any financial or other support during the year that was not previously contractually required.
(d) Great Valley Solar consists of the Great Valley Solar 1, Great Valley Solar 2, Great Valley Solar 3 and Great Valley Solar 4 projects, for
which the noncontrolling interest of the tax equity investor was $67 million and $84 million at December 31, 2022 and 2021, respectively.
(e) Copper Mountain - Mesquite Solar consists of the Copper Mountain Solar 4, Mesquite Solar 2 and Mesquite Solar 3 projects for which the
noncontrolling interest of the tax equity investor was $94 million and $118 million at December 31, 2022 and 2021, respectively.
(f) Non-utility property is reduced by accumulated depreciation of $35 million for Great Valley Solar, $59 million for Copper Mountain -
Mesquite Solar and $29 million for CED Nevada Virginia at December 31, 2022.
(g) Non-utility property is reduced by accumulated depreciation of $26 million for Great Valley Solar, $44 million for Copper Mountain -
Mesquite Solar and $10 million for CED Nevada Virginia at December 31, 2021.
(h) CED Nevada Virginia consists of the Copper Mountain Solar 5, Battle Mountain Solar and Water Strider Solar projects for which the
noncontrolling interest of the tax equity investor was $39 million and $95 million at December 31, 2022 and 2021, respectively.
The following table summarizes the VIEs into which the Clean Energy Businesses have entered as of December 31,
2022. The Clean Energy Businesses were classified as held for sale as of December 31, 2022. See "Assets and
Liabilities Held for Sale" in Note A and Note X.
CON EDISON ANNUAL REPORT 2022
189
Project Name
Great Valley Solar (c)
Copper Mountain - Mesquite Solar (c)
CED Nevada Virginia (c)
Generating Capacity (a)
(MW AC)
200
344
431
Power
Purchase
Agreement
Term in Years
Year of
Investment
15-20
20-25
20-25
2018
2018
2021
Location
CA
NV and AZ
NV and VA
Maximum
Exposure to Loss
(Millions of Dollars) (b)
$218
404
316
(a) Represents ownership interest in the project.
(b) Maximum exposure is equal to the net assets of the project on the consolidated balance sheet less any applicable noncontrolling interest.
Con Edison did not provide any financial or other support during the year that was not previously contractually required.
(c) For the projects comprising Great Valley Solar, Copper Mountain Mesquite Solar and CED Nevada Virginia, refer to (d), (e) and (h) in the
table above.
Note T – Asset Retirement Obligations
The Companies recognize a liability at fair value for legal obligations associated with the retirement of long-lived
assets in the period in which they are incurred, or when sufficient information becomes available to reasonably
estimate the fair value of such legal obligations. When the liability is initially recorded, asset retirement costs are
capitalized by increasing the carrying amount of the related asset. The liability is accreted to its present value each
period and the capitalized cost is depreciated over the useful life of the related asset. The fair value of the asset
retirement obligation liability is measured using expected future cash flows discounted at credit-adjusted risk-free
rates, historical information, and where available, quoted prices from outside contractors. The Companies evaluate
these assumptions underlying the asset retirement obligation liability on an annual basis or as frequently as needed.
The Companies recorded asset retirement obligations associated with the removal of asbestos and asbestos-
containing material in their buildings (other than the structures enclosing generating stations and substations),
electric equipment and steam and gas distribution systems. The Companies also recorded asset retirement
obligations relating to gas and oil pipelines abandoned in place and municipal infrastructure support.
The Companies did not record an asset retirement obligation for the removal of asbestos associated with the
structures enclosing generating stations and substations. For these building structures, the Companies were unable
to reasonably estimate their asset retirement obligations because the Companies were unable to estimate the
undiscounted retirement costs or the retirement dates and settlement dates. The amount of the undiscounted
retirement costs could vary considerably depending on the disposition method for the building structures, and the
method has not been determined. The Companies anticipate continuing to use these building structures in their
businesses for an indefinite period, and so the retirement dates and settlement dates are not determinable.
Con Edison recorded asset retirement obligations for the removal of the Clean Energy Businesses’ solar and wind
equipment related to projects located on property that is not owned by them and the term of the arrangement is
finite including any renewal options. Con Edison did not record asset retirement obligations for the Clean Energy
Businesses’ projects that are located on property that is owned by them because they expect that the equipment will
continue to generate electricity at these facilities long past the manufacturer’s warranty at minimal operating
expense. Therefore, Con Edison was unable to reasonably estimate the retirement date of this equipment. The
Clean Energy Businesses were classified as held for sale as of December 31, 2022. See "Assets and Liabilities
Held for Sale" in Note A and Note X.
The Utilities include in depreciation rates the estimated removal costs, less salvage, for utility plant assets. The
amounts related to removal costs that are associated with asset retirement obligations are classified as an asset
retirement liability. Pursuant to accounting rules for regulated operations, future removal costs that do not represent
legal asset retirement obligations are recorded as regulatory liabilities. Accretion and depreciation expenses related
to removal costs that represent legal asset retirement obligations are applied against the Companies’ regulatory
liabilities. Asset retirement costs that are recoverable from customers are recorded as regulatory liabilities to reflect
the timing difference between costs recovered through the rate-making process and recognition of costs.
The following table represents the balance of asset retirement obligations as of December 31, 2022 and 2021, and
changes to the obligation for the years then ended:
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CON EDISON ANNUAL REPORT 2022
(Millions of Dollars)
Beginning Balance as of January 1,
ARO held for sale (a)
Changes in estimated cash flows
Accretion expense
Liabilities settled
Ending Balance as of December 31, (b)
Con Edison
CECONY
2022
$577
(77)
44
18
(62)
$500
2021
$577
—
58
18
(75)
$577
2022
$504
—
43
14
(62)
$499
2021
$508
—
55
15
(74)
$504
(a) The asset retirement obligations of the Clean Energy Businesses are reflected in current liabilities held for sale on Con Edison's
consolidated balance sheet as of December 31, 2022. See "Assets and Liabilities Held for Sale" in Note A and Note X.
(b) At December 31, 2022, Con Edison and CECONY recorded reductions of $78 million and $77 million, respectively, to the regulatory liability
associated with cost of removal to reflect depreciation and interest expense. At December 31, 2021, Con Edison and CECONY recorded
reductions of $87 million and $85 million, respectively, to the regulatory liability associated with cost of removal to reflect depreciation and
interest expense.
Note U – Related Party Transactions
The NYSPSC generally requires that the Utilities and Con Edison’s other subsidiaries be operated as separate
entities. The Utilities and the other subsidiaries are required to have separate operating employees and operating
officers of the Utilities may not be operating officers of the other subsidiaries. The Utilities may provide
administrative and other services to, and receive such services from, Con Edison and its other subsidiaries only
pursuant to cost allocation procedures approved by the NYSPSC. Transfers of assets between the Utilities and
Con Edison or its other subsidiaries may be made only as approved by the NYSPSC. The debt of the Utilities is to
be raised directly by the Utilities and not derived from Con Edison. Without the prior permission of the NYSPSC,
the Utilities may not make loans to, guarantee the obligations of, or pledge assets as security for the indebtedness
of Con Edison or its other subsidiaries. The NYSPSC limits the dividends that the Utilities may pay Con Edison.
See “Dividends” in Note C. As a result, substantially all of the net assets of CECONY and O&R ($16,878 million and
$931 million, respectively), at December 31, 2022, are considered restricted net assets. The NYSPSC may impose
additional measures to separate, or “ring fence,” the Utilities from Con Edison and its other subsidiaries. See “Rate
Plans” in Note B.
The costs of administrative and other services provided by CECONY to, and received by it from, Con Edison and its
other subsidiaries for the years ended December 31, 2022, 2021 and 2020 were as follows:
(Millions of Dollars)
Cost of services provided
Cost of services received
2022
$135
75
CECONY
2021
$137
68
2020
$128
66
In addition, CECONY and O&R have joint gas supply arrangements in connection with which CECONY sold to O&R
$144 million, $90 million and $59 million of natural gas for the years ended December 31, 2022, 2021 and 2020,
respectively. These amounts are net of the effect of related hedging transactions.
At December 31, 2022 and 2021, CECONY's net payable to Con Edison for income taxes was $89 million and $10
million, respectively.
The Utilities perform work and incur expenses on behalf of NY Transco, a company in which CET has a 45.7
percent equity interest. The Utilities bill NY Transco for such work and expenses in accordance with established
policies. For the years ended December 31, 2022 and 2021, the amounts billed by the Utilities to NY Transco were
$8.0 million and $5.9 million, respectively. In May 2016, CECONY transferred certain electric transmission projects
to NY Transco.
CECONY has storage and wheeling service contracts with Stagecoach Gas Services LLC (Stagecoach), a joint
venture formerly owned by a subsidiary of CET and a subsidiary of Crestwood Equity Partners LP (Crestwood). In
addition, CECONY is the replacement shipper on one of Crestwood’s firm transportation agreements with
Tennessee Gas Pipeline Company LLC. CECONY incurred costs for storage and wheeling services from
CON EDISON ANNUAL REPORT 2022
191
Stagecoach of $31 million and $34 million for the years ended December 31, 2021 and 2020, respectively. During
2021, a subsidiary of CET completed the sale of its 50 percent interest in Stagecoach. See Note W.
CECONY has a 20-year transportation contract with Mountain Valley Pipeline, LLC (MVP) for 250,000 dekatherms
per day of capacity. CET owns a 9.6 percent equity interest in MVP (that is expected to be reduced to 8.0 percent).
See "Investments - 2020 and 2021 Partial Impairments of Investment in Mountain Valley Pipeline, LLC (MVP) " in
Note A. In October 2017, the Environmental Defense Fund and the Natural Resource Defense Council requested
the NYSPSC to prohibit CECONY from recovering costs under its MVP contract unless CECONY can demonstrate
that the contract is in the public interest. CECONY advised the NYSPSC that it would respond to the request if the
NYSPSC opened a proceeding to consider this request. For the years ended December 31, 2022 and 2021,
CECONY incurred no costs under the contract.
FERC has authorized CECONY to lend funds to O&R for a period of not more than 12 months, in an amount not to
exceed $250 million, at prevailing market rates. At December 31, 2022 and 2021 there were no outstanding loans to
O&R.
The Clean Energy Businesses had financial electric capacity contracts with CECONY and O&R during 2022 and
2021. For the years ended December 31, 2022 and 2021, the Clean Energy Businesses realized a $5 million gain
and $4 million loss, respectively, under these contracts. The Clean Energy Businesses were classified as held for
sale as of December 31, 2022. See "Assets and Liabilities Held for Sale" in Note A and Note X.
Note V – New Financial Accounting Standards
In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of
Reference Rate Reform on Financial Reporting (ASU 2020-04). In 2017, the United Kingdom’s Financial Conduct
Authority announced that it intends to stop persuading or compelling banks to submit the London Interbank Offered
Rate (LIBOR), a benchmark interest rate referenced in a variety of agreements, after 2021. The United Kingdom's
Financial Conduct Authority ceased publication of U.S. Dollar LIBOR after December 31, 2021 for one-week and
two-month U.S. Dollar LIBOR tenors, and expects to cease publishing after June 30, 2023 for all other U.S. Dollar
LIBOR tenors. ASU 2020-04 provides entities with optional expedients and exceptions for applying generally
accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain
criteria, that reference LIBOR or another reference rate expected to be discontinued. In January 2021, the FASB
issued amendments to the guidance through ASU 2021-01 to include all contract modifications and hedging
relationships affected by reference rate reform, including those that do not directly reference LIBOR or another
reference rate expected to be discontinued, and clarify which optional expedients may be applied to them. As the
Companies continue to modify contracts that contain references to LIBOR that allow for the use of an alternative
rate, they have applied the practical expedient to not assess each change for a contract modification. The guidance
can be applied prospectively. The optional relief is temporary and generally cannot be applied to contract
modifications and hedging relationships entered into or evaluated after December 31, 2024, which date reflects the
updates in ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848. The
Companies do not expect the guidance to have a material impact on their financial position, results of operations or
liquidity.
In December 2021, the FASB issued amendments to the guidance on accounting for government assistance
through ASU 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government
Assistance. The amendments require that business entities that apply a grant or contribution model by analogy to
other accounting guidance disclose 1) the types of assistance, 2) an entity’s accounting for the assistance, and 3)
the effect of the assistance on an entity’s financial statements. For public entities, the amendments are effective for
reporting periods beginning after December 15, 2021. Early adoption is permitted. The Companies have concluded
the new guidance does not have a material impact on the Companies’ financial position, results of operations and
liquidity.
Note W – Dispositions
Crane and Coram
In April 2021, a subsidiary of the Clean Energy Businesses entered into an agreement to sell substantially all of its
membership interests in a renewable electric project that it developed and also all of its membership interests in a
renewable electric project that it acquired in 2016. The sales were completed in June 2021. The combined carrying
value of both projects was approximately $192 million in June 2021. The net pre-tax gain on the sales was
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CON EDISON ANNUAL REPORT 2022
$3 million ($2 million after-tax) and was included within "Other operations and maintenance" on Con Edison's
consolidated income statement for the year ended December 31, 2021. The retained portion of the membership
interest in the renewable electric project, of $11 million, was calculated based on a discounted cash flow of future
projected earnings, and the retained portion is accounted for as an equity method investment. The portion of the
gain attributable to the retained portion of the membership interest was not material for the year ended December
31, 2021. See Note S. The Clean Energy Businesses were held for sale as of December 31, 2022. See "Assets and
Liabilities Held for Sale" in Note A and Note X.
Stagecoach Gas Services
In 2021, a subsidiary of Con Edison Gas Pipeline and Storage, LLC (CET) and its joint venture partner agreed to
sell their combined interests in Stagecoach Gas Services LLC (Stagecoach) for a total of $1,225 million, of which
$629 million, including closing adjustments, was attributed to CET for its 50 percent interest. The purchase and sale
agreement provided for a two-stage closing, the first of which was completed in July 2021 and the second of which
was completed in November 2021. See "Investments - Partial Impairment of Investment in Stagecoach Gas
Services LLC (Stagecoach)" in Note A.
CON EDISON ANNUAL REPORT 2022
193
Note X - Held-for-Sale Treatment of the Clean Energy Businesses
During the first nine months of 2022, Con Edison considered strategic alternatives with respect to the Clean Energy
Businesses. On October 1, 2022, following the conclusion of such review and to allow for continued focus on the
Utilities and their clean energy transition, Con Edison entered into a purchase and sale agreement pursuant to
which Con Edison agreed to sell the Clean Energy Businesses to RWE Renewables Americas, LLC, a subsidiary of
RWE Aktiengesellschaft (RWE) for a total of $6,800 million, subject to closing adjustments. The purchase price will
be adjusted (i) upward for certain cash and cash equivalents, (ii) downward for certain indebtedness and debt-like
items, (iii) downward for certain transaction expenses, (iv) upward or downward to the extent that the net working
capital varies from a set target, (v) upward or downward to the extent that capital expenditures incurred prior to the
closing of the transaction vary from a set budget, and (vi) downward by the value allocated to certain assets and
projects that are not able to be conveyed to RWE upon closing of the transaction. The purchase and sale
agreement includes certain customary representations, warranties and covenants. The transaction is subject to
customary closing conditions, including, among other things: expiration of the waiting period under the Hart-Scott-
Rodino Antitrust Improvements Act of 1976, as amended, which occurred on November 28,2022; approval from the
FERC under Section 203 of the Federal Power Act, which was obtained on January 20, 2023, and approval by the
Committee on Foreign Investment in the United States, which was obtained on February 6, 2023. The transaction is
expected to close on or about the end of the first quarter of 2023.
Con Edison will retain the Clean Energy Businesses' tax equity interest in the Crane Solar project and its anticipated
tax equity interest in two solar projects located in VA. These tax equity partnerships produce renewable energy tax
credits that can be used to reduce Con Edison’s federal income tax in the year in which the projects are placed in
service. These tax credits would be subject to recapture, in whole or in part, if the assets were sold within a five-
year period beginning on the date on which the assets are placed in service. Con Edison will continue to employ
HLBV accounting for its interests in these tax equity partnerships.
Con Edison will retain any post-sale deferred income taxes (federal and state income taxes, including tax
attributes), any valuation allowances associated with the deferred tax assets, all current federal taxes and New York
state taxes and the estimated liability for uncertain tax positions. The deferred investment tax credits and
accumulated amortized investment tax credits of the Clean Energy Businesses will be recognized in full upon the
completion of the sale of the Clean Energy Businesses. In addition, certain projects where required transaction
consents have not been obtained as of the closing of the transaction (see above) will be transferred to a Con Edison
subsidiary and will be sold to RWE if and when consents to the sale have been obtained.
Concurrent with entering into the purchase and sale agreement, Con Edison incurred costs in the normal course of
the sale process. A majority of the expected transaction costs of approximately $70 million ($49 million after-tax)
were recorded in 2022. Also, as described in Note A, depreciation and amortization expense of approximately
$61 million ($42 million after-tax) were not recorded on the assets of the Clean Energy Businesses in the fourth
quarter of 2022 and will continue to not be recorded through the closing of the transaction. Further, since the Clean
Energy Businesses were classified as held for sale as of December 31, 2022 and the transaction is expected to
close on or about the end of the first quarter of 2023, Con Edison analyzed the potential impact of the anticipated
sale on its state apportionment factors. Based on current estimates, Con Edison recorded an increase to its net
deferred income tax liabilities and valuation allowance of $111 million and $10 million, respectively, and
corresponding deferred income tax expense of approximately $121 million (net of federal income taxes) in the fourth
quarter of 2022.
The following table shows the pre-tax operating income for the Clean Energy Businesses for the years ended
December 31, 2022, 2021 and 2020.
(Millions of Dollars)
Pre-tax operating income
Pre-tax operating income, excluding non-controlling
interest
2022
$466
406
2021
$310
158
2020
$68
23
Clean Energy Businesses
The Clean Energy Business represent a reportable segment. See Note P. At December 31, 2022, the carrying
amounts of the major classes of assets and liabilities of the Clean Energy Businesses that are expected to be sold
are presented on a held-for-sale basis, and accordingly exclude certain intercompany and net deferred tax liability
balances, as follows:
194
CON EDISON ANNUAL REPORT 2022
(Millions of Dollars)
ASSETS
CURRENT ASSETS
Cash and temporary cash investments
Accounts receivable and other receivables - net allowance for uncollectible accounts
Accrued unbilled revenue
Fuel oil, gas in storage, materials and supplies, at average cost
Restricted cash
Fair value of derivatives assets
Prepayments
Other current assets
TOTAL CURRENT ASSETS
NON-UTILITY PLANT
Non-utility property, net accumulated depreciation
Construction work in progress
NET PLANT
OTHER NONCURRENT ASSETS
Goodwill
Intangible assets, less accumulated amortization
Operating lease right-of-use asset
Fair value of derivatives assets
Other deferred charges and noncurrent assets
TOTAL OTHER NONCURRENT ASSETS
TOTAL ASSETS
December 31,
2022
$25
319
51
56
223
84
35
24
817
4,197
522
4,719
31
1,222
266
93
14
1,626
$7,162
(a) Not included in the fair value of derivative assets above is $2 million related to an intercompany amount with CECONY, which amount is
eliminated in consolidation. See Note U as that amount is governed by derivative agreements, it will remain an asset of the Clean Energy
Businesses following the expected close of the sale transaction.
(Millions of Dollars)
LIABILITIES
CURRENT LIABILITIES
Long-term debt due within one year
Term loan
Accounts payable
Operating lease liabilities
Accrued Interest
Other current liabilities
TOTAL CURRENT LIABILITIES
NONCURRENT LIABILITIES
Asset retirement obligations
Operating lease liabilities
Other deferred credits and noncurrent liabilities
TOTAL NONCURRENT LIABILITIES
LONG-TERM DEBT
TOTAL LIABILITIES
December 31,
2022
$353
150
326
33
40
71
973
77
248
20
345
2,292
$3,610
CON EDISON ANNUAL REPORT 2022
195
Condensed Financial Information of Consolidated Edison, Inc. (a) (b)
Condensed Statement of Income and Comprehensive Income
(Parent Company Only)
(Millions of Dollars, except per share amounts)
Equity in earnings of subsidiaries
Other operating and maintenance expenses
Taxes other than income taxes
Other income (deductions)
Interest expense
Income tax expense (benefit)
Net Income
Comprehensive Income
Net Income Per Share – Basic
Net Income Per Share – Diluted
Dividends Declared Per Share
Average Number Of Shares Outstanding—Basic (In Millions)
Average Number Of Shares Outstanding—Diluted (In Millions)
Schedule I
For the Years Ended December 31,
2022
$1,860
(1)
(7)
(31)
(32)
(129)
$1,660
$1,677
$4.68
$4.66
$3.16
354.5
355.8
2021
$1,369
(1)
(6)
14
(37)
7
$1,346
$1,376
$3.86
$3.85
$3.10
348.4
349.4
2020
$1,105
(1)
(12)
33
(60)
36
$1,101
$1,095
$3.29
$3.28
$3.06
334.8
335.7
(a) These financial statements, in which Con Edison’s subsidiaries have been included using the equity method, should be read together with
its consolidated financial statements and the notes thereto appearing above.
(b) Certain prior period amounts have been reclassified to conform with current period presentation.
196
CON EDISON ANNUAL REPORT 2022
Condensed Financial Information of Consolidated Edison, Inc. (a) (c)
Condensed Statement of Cash Flows
(Parent Company Only)
(Millions of Dollars)
Net Income
Equity in earnings of subsidiaries
Deferred income taxes
Dividends received from:
CECONY
O&R
Clean Energy Businesses
Con Edison Transmission
Change in Assets and Liabilities:
Accounts receivable from affiliated companies
Accrued taxes to affiliated companies
Accounts payable to affiliated companies
Other – net (b)
Net Cash Flows from Operating Activities(b)
Investing Activities
Contributions to subsidiaries
Debt receivable from affiliated companies
Net Cash Flows Used in Investing Activities
Financing Activities
Net proceeds of short-term debt
Issuance of long-term debt
Retirement of long-term debt(b)
Debt issuance costs
Issuance of common shares for stock plans, net of repurchases
Issuance of common shares - public offering
Common stock dividends
Net Cash Flows Used in Financing Activities(b)
Net Change for the Period
Balance at Beginning of Period
Balance at End of Period
For the Years Ended December 31,
2022
$1,660
(1,860)
163
978
57
98
1
(138)
(1)
1
56
1,015
(150)
—
(150)
632
—
(293)
—
57
—
(1,089)
(693)
172
19
$191
2021
$1,346
(1,369)
119
988
52
64
152
57
(1)
1
50
1,459
(1,135)
875
(260)
50
—
(1,178)
(1)
60
775
(1,030)
(1,324)
(125)
144
$19
2020
$1,101
(1,105)
32
982
49
21
11
(386)
(78)
—
(89)
538
(626)
400
(226)
(537)
650
(3)
(3)
58
640
(975)
(170)
142
2
$144
(a) These financial statements, in which Con Edison’s subsidiaries have been included using the equity method, should be read together with
its consolidated financial statements and the notes thereto appearing above.
(b) During 2021, Con Edison identified that the reclassification of debt from long-term to current for the year ended December 31, 2020 had
been erroneously presented within the operating cash flow section as a cash inflow and in the financing section as a cash outflow in the
Condensed Statement of Cash Flows (Parent Company Only). The amounts for the year ended December 31, 2020 have been revised to
correct the error in the classification of $1,175 million from Other - net within Net Cash Flows from Operating Activities to Retirement of long-
term debt within Net Cash Flows Used in Financing Activities. Con Edison has evaluated the effect of these misstatements, both
qualitatively and quantitatively, and concluded that they are not material to the financial statements issued for the year ended December 31,
2020. These amounts were correctly presented on the Consolidated Statement of Cash Flows for the year ended December 31, 2020.
(c) Certain prior period amounts have been reclassified to conform with current period presentation.
CON EDISON ANNUAL REPORT 2022
197
Condensed Financial Information of Consolidated Edison, Inc. (a) (b)
Condensed Balance Sheet
(Parent Company Only)
(Millions of Dollars)
Assets
Current Assets
Cash and temporary cash investments
Other receivables, net allowance for uncollectible accounts
Tax receivable
Accounts receivable from affiliated companies
Prepayments
Other current assets
Total Current Assets
Investments in subsidiaries and others
Goodwill
Pension and retiree benefits - asset
Other deferred charges and noncurrent assets
Total Assets
Liabilities and Shareholders’ Equity
Current Liabilities
Long-term debt due within one year
Term loan
Notes payable
Accounts payable
Accounts payable to affiliated companies
Accrued taxes
Accrued taxes to affiliated companies
Accrued interest
Other current liabilities
Total Current Liabilities
Deferred income taxes and unamortized investment tax credits
Long-term debt
Total Liabilities
Shareholders’ Equity
Common stock, including additional paid-in capital
Retained earnings
Total Shareholders’ Equity
Total Liabilities and Shareholders’ Equity
December 31,
2022
2021
$191
4
5
1,337
9
32
1,578
20,839
406
5
2
$19
—
3
1,199
28
14
1,263
19,951
406
—
8
$22,830
$21,628
$649
400
282
39
11
7
506
7
7
1,908
235
—
2,143
9,840
10,847
20,687
$22,830
$293
—
50
1
10
2
507
2
7
872
72
647
1,591
9,748
10,289
20,037
$21,628
(a) These financial statements, in which Con Edison’s subsidiaries have been included using the equity method, should be read together with
its consolidated financial statements and the notes thereto appearing above.
(b) Certain prior period amounts have been reclassified to conform with current period presentation.
198
CON EDISON ANNUAL REPORT 2022
Valuation and Qualifying Accounts
For the Years Ended December 31, 2022, 2021 and 2020
Schedule II
Company
(Millions of Dollars)
Con Edison
COLUMN A
Description
Allowance for uncollectible
accounts (a):
CECONY
Allowance for uncollectible
accounts (a):
COLUMN C
Additions
COLUMN B
Balance at
Beginning
of Period
(1)
Charged To
Costs And
Expenses
(2)
Charged
To Other
Accounts
COLUMN D
Deductions
(b)
COLUMN E
Balance
At End of
Period
2022
2021
2020
2022
2021
2020
$339
$154
$74
$323
$143
$68
$78
$83
$72
$74
$78
$65
$80
$—
$—
$80
$—
$—
$(165)
$102
$8
$(156)
$102
$10
$332
$339
$154
$321
$323
$143
(a) This is a valuation account deducted in the balance sheet from the assets (Accounts receivable - customers and Other receivables) to
which they apply.
(b) Accounts written off less cash collections, miscellaneous adjustments and amounts reinstated as receivables previously written off.
CON EDISON ANNUAL REPORT 2022
199
Item 9: Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
Con Edison
None.
CECONY
None.
Item 9A: Controls and Procedures
The Companies maintain disclosure controls and procedures designed to provide reasonable assurance that the
information required to be disclosed in the reports that they submit to the Securities and Exchange Commission
(SEC) is recorded, processed, summarized and reported within the time periods specified in the rules and forms of
the SEC. Disclosure controls and procedures include, without limitation, controls and procedures designed to
ensure that information required to be disclosed by an issuer in the reports that it files or submits under the
Securities Exchange Act of 1934, as amended, is accumulated and communicated to the issuer’s management,
including its principal executive and principal financial officers, or persons performing similar functions, as
appropriate to allow timely decisions regarding required disclosure. For each of the Companies, its management,
with the participation of its principal executive officer and principal financial officer, has evaluated its disclosure
controls and procedures as of the end of the period covered by this report and, based on such evaluation, has
concluded that the controls and procedures are effective to provide such reasonable assurance. Reasonable
assurance is not absolute assurance, however, and there can be no assurance that any design of controls or
procedures would be effective under all potential future conditions, regardless of how remote.
For the Companies’ Reports of Management On Internal Control Over Financial Reporting and the related opinions
of PricewaterhouseCoopers LLP (presented in the Reports of Independent Registered Public Accounting Firm), see
Item 8 of this report (which information is incorporated herein by reference).
There was no change in the Companies’ internal control over financial reporting that occurred during the
Companies’ most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the
Companies’ internal control over financial reporting.
Item 9B: Other Information
Con Edison
None.
CECONY
None.
Item 9C: Disclosure Regarding Foreign Jurisdictions that Prevent Inspections
Not Applicable.
200
CON EDISON ANNUAL REPORT 2022
Part III
Item 10: Directors, Executive Officers and Corporate Governance
Item 11: Executive Compensation
Item 12: Security Ownership of Certain Beneficial Owners and Management and Related Stockholder
Matters
Item 13: Certain Relationships and Related Transactions, and Director Independence
Item 14: Principal Accounting Fees and Services
Con Edison
Information required by Part III as to Con Edison, other than the information required in Item 12 of this report by
Item 201(d) of Regulation S-K, is incorporated by reference from Con Edison’s definitive proxy statement for its
Annual Meeting of Stockholders to be held on May 15, 2023. The proxy statement is to be filed pursuant to
Regulation 14A not later than 120 days after December 31, 2022, the close of the fiscal year covered by this report.
The information required pursuant to Item 201(d) of Regulation S-K as at December 31, 2022 is as follows:
Equity Compensation Plan Information
Plan category
Equity compensation plans approved
by security holders
2003 LTIP (a)
2013 LTIP (b)
Stock Purchase Plan (c)
Total equity compensation plans
approved by security holders
Total equity compensation plans not
approved by security holders
Total
Number of securities to
be issued upon
exercise of
outstanding options,
warrants and rights
(1)
Weighted-average
exercise price of
outstanding options,
warrants and rights
(2)
Number of securities
remaining available for
future issuance under
equity compensation
plans (excluding
securities reflected in
column (1))
(3)
93,180
1,416,416
—
1,509,596
500
1,510,096
(d)
—
—
—
—
—
—
—
2,959,880
3,272,880
6,232,760
—
6,232,760
(a) The number of shares of Con Edison common stock that may be issued pursuant to outstanding awards under the Long Term Incentive
Plan approved by the company’s shareholders in 2003 (the “2003 LTIP”) include 93,180 shares for stock unit awards made prior to 2013
that have vested and for which the receipt of shares was deferred. Amounts do not include shares that may be issued pursuant to any
dividend reinvestment in the future on the deferred stock units. There is no dividend reinvestment on the other outstanding awards.
Outstanding awards had no exercise price. No new awards may be made under the 2003 LTIP.
(b) The number of shares of Con Edison common stock that may be issued pursuant to outstanding awards under the Long Term Incentive
Plan approved by the company’s shareholders in 2013 (the “2013 LTIP”) include: (A) outstanding awards made in 2014 and subsequent
years (912,098 shares for performance restricted stock units and 180,588 shares for time-based restricted stock units); (B) 323,730 shares
covered by outstanding directors’ deferred stock unit awards (which vested upon grant). Amounts do not include shares that may be issued
pursuant to any dividend reinvestment in the future on the deferred stock units. There is no dividend reinvestment on the other outstanding
awards. The outstanding awards had no exercise price. No new awards may be made under the 2013 LTIP after May 20, 2023.
(c) Shares of Con Edison common stock may be issued under the Stock Purchase Plan until May 19, 2024 (which is 10 years after the date of
the annual meeting at which Con Edison’s shareholders approved the plan).
(d) This amount represents shares to be issued to an officer who had elected to defer receipt of these shares until separation from service or
later. These shares are issuable pursuant to awards of restricted stock units made in 2000, which vested in 2004.
For additional information about Con Edison’s stock-based compensation, see Note O to the financial statements in
Item 8 of this report (which information is incorporated herein by reference).
In accordance with General Instruction G(3) to Form 10-K, other information regarding Con Edison’s Executive
Officers may be found in Part I of this report under the caption “Information about our Executive Officers.”
CECONY
Information required by Items 10, 11, 12 and 13 of Part III as to CECONY is omitted pursuant to Instruction (I)(2) to
Form 10-K (Omission of Information by Certain Wholly-Owned Subsidiaries).
CON EDISON ANNUAL REPORT 2022
201
Fees paid or payable by CECONY to its principal accountant, PricewaterhouseCoopers LLP, for services related to
2022 and 2021 are as follows:
Audit fees
Audit-related fees (a)
Total fees
2022
2021
$3,690,800
$3,648,191
753,795
488,806
$4,444,595
$4,136,997
(a) Relates to assurance and related service fees that are reasonably related to the performance of the annual audit or quarterly reviews of the
company's financial statements that are not specifically deemed “Audit Services.” The major items included in audit-related fees in 2021
and 2022 are fees related to reviews of system implementations and associated internal controls.
Con Edison’s Audit Committee or, as delegated by the Audit Committee, the Chair of the Committee, approves in
advance each auditing service and non-audit service permitted by applicable laws and regulations, including tax
services, to be provided to CECONY by its independent accountants.
202
CON EDISON ANNUAL REPORT 2022
Part IV
Item 15: Exhibits and Financial Statement Schedules
(a) Documents filed as part of this report:
1. List of Financial Statements – See financial statements listed in Item 8.
2. List of Financial Statement Schedules – See schedules listed in Item 8.
3. List of Exhibits
Exhibits listed below which have been filed previously with the Securities and Exchange Commission pursuant to
the Securities Act of 1933 and the Securities Exchange Act of 1934, and which were designated as noted below, are
hereby incorporated by reference and made a part of this report with the same effect as if filed with the report.
Exhibits listed below that were not previously filed are filed herewith.
CON EDISON ANNUAL REPORT 2022
203
Con Edison
3.1.1 Restated Certificate of Incorporation of Consolidated Edison, Inc. (Designated in Con Edison’s Annual Report on Form 10-K for the
year ended December 31, 2017 (File No. 1-14514) as Exhibit 3.1.1)
3.1.2 By-laws of Con Edison, effective as of February 18, 2021. (Designated in Con Edison’s Current Report on Form 8-K, dated
February 18, 2021 (File No. 1-14514) as Exhibit 3)
4.1.1 Description of Con Edison's Common Shares ($.10 par value). (Designated in Con Edison’s Annual Report on Form 10-K for the
year ended December 31, 2019 (File No. 1-14514) as Exhibit 4.1.1)
4.1.2.1
Indenture, dated as of April 1, 2002, between Con Edison and JP Morgan Chase Bank (formerly known as The Chase Manhattan
Bank), as Trustee. (Designated in Con Edison's Registration Statement on Form S-3 of Con Edison (No. 333-102005) as Exhibit
4.1)
4.1.2.2 First Supplemental Indenture, dated as of August 1, 2009, between Con Edison and The Bank of New York Mellon (formerly known
as The Bank of New York (successor as trustee to JPMorgan Chase Bank, N.A. (formerly known as JPMorgan Chase Bank))), as
Trustee. (Designated in Con Edison’s Registration Statement (No. 333-161018) as Exhibit 4.2)
4.1.2.3 Form of Con Edison's 0.65% Debentures, Series 2020 A. (Designated in Con Edison’s Current Report on Form 8-K, dated
November 30, 2020 (File No. 1-14514) as Exhibit 4)
4.1.3 Note Assumption and Exchange Agreement, dated as of June 20, 2008, between Con Edison and the institutional investors listed
in Schedule I thereto. (Designated in Con Edison’s Current Report on Form 8-K, dated June 20, 2008 (File No. 1-14514) as Exhibit
4)
10.1.1.1 Credit Agreement, dated as of December 7, 2016, among CECONY, Con Edison, O&R, the lenders party thereto and Bank of
America, N.A., as Administrative Agent. (Designated in Con Edison’s Current Report on Form 8-K dated December 7, 2016 (File
No. 1-14514) as Exhibit 10)
10.1.1.2 Extension Agreement, dated as of January 8, 2018, among CECONY, Con Edison, O&R, the lenders party thereto and Bank of
America, N.A., as Administrative Agent. (Designated in Con Edison's Current Report on Form 8-K dated January 8, 2018 (File No.
1-14514) as Exhibit 10)
10.1.1.3 Extension Agreement and First Amendment to Credit Agreement, effective April 1, 2019, among CECONY, Con Edison, O&R, the
lenders party thereto and Bank of America, N.A., as Administrative Agent. (Designated in Con Edison’s Current Report on Form 8-K
dated April 1, 2019 (File No. 1-14514) as Exhibit 10)
10.1.2
364-Day Senior Unsecured Term Loan Credit Agreement, dated as of June 30, 2022, among Con Edison, the lender party thereto,
Barclays Bank PLC as Sole Lead Arranger and Sole Bookrunner and Barclays Bank PLC, as Administrative Agent (Designated in
Con Edison’s Current Report on Form 8-K, dated June 30, 2022 (File No. 1-14514) as Exhibit 10)
10.1.2.1 Amendment No. 1, dated as of November 29, 2022, by and between Con Edison and Barclays Bank PLC, as Administrative Agent
and Lender. (Designated in Con Edison’s Current Report on Form 8-K, dated November 29, 2022) (File No.1-14514) as Exhibit 2)
10.1.3 Severance Program for Officers of Consolidated Edison, Inc. and its Subsidiaries, as amended and restated effective as of
December 1, 2021. (Designated in Con Edison's Annual Report on Form 10-K for the year ended December 31, 2021 (File No.
1-14514) as Exhibit 10.1.2)
10.1.4 The Consolidated Edison, Inc. Stock Purchase Plan, as amended and restated as of May 19, 2014. (Designated in Con Edison’s
Current Report on Form 8-K dated May 19, 2014 (File No. 1-14514) as Exhibit 10)
10.1.4.1 Amendment One to The Consolidated Edison, Inc. Stock Purchase Plan. (Designated in Con Edison's Current Report on Form 10-
K for the year ended December 31, 2016 (File No. 1-14514) as Exhibit 10.1.3.2)
10.1.4.2 Amendment Two to The Consolidated Edison, Inc. Stock Purchase Plan. (Designated in Con Edison's Quarterly Report on Form
10-Q for the quarterly period ended September 30, 2020 (File No. 1-14514) as Exhibit 10)
10.1.4.3 Amendment Three to The Consolidated Edison, Inc. Stock Purchase Plan. (Designated in Con Edison's Annual Report on Form 10-
K for the year ended December 31, 2020 (File No. 1-14514) as Exhibit 10.1.3.4)
10.1.5.1 The Consolidated Edison Retirement Plan. (Designated in Con Edison’s Quarterly Report on Form 10-Q for the quarterly period
ended March 31, 2017 (File No. 1-14514) as Exhibit 10.1.1)
10.1.5.2 Amendment to the Consolidated Edison Retirement Plan. (Designated in Con Edison’s Quarterly Report on Form 10-Q for the
quarterly period ended September 30, 2017 (File No. 1-14514) as Exhibit 10.1.1)
10.1.5.3 Amendment to the Consolidated Edison Retirement Plan. (Designated in Con Edison’s Quarterly Report on Form 10-Q for the
quarterly period ended September 30, 2017 (File No. 1-14514) as Exhibit 10.1.2)
10.1.5.4 Amendment, dated December 18, 2017, to the Consolidated Edison Retirement Plan. (Designated in Con Edison’s Annual Report
on Form 10-K for the year ended December 31, 2017 (File No. 1-14514) as Exhibit 10.1.4.2)
10.1.5.5 Amendment to the Consolidated Edison Retirement Plan, effective January 1, 2019. (Designated in Con Edison’s Annual Report on
Form 10-K for the year ended December 31, 2019 (File No. 1-14514) as Exhibit 10.1.4.5)
10.1.5.6 Amendment to the Consolidated Edison Retirement Plan, effective August 1, 2019. (Designated in Con Edison’s Annual Report on
Form 10-K for the year ended December 31, 2019 (File No. 1-14514) as Exhibit 10.1.4.6)
10.1.5.7 Amendment to the Consolidated Edison Retirement Plan, effective August 1, 2019. (Designated in Con Edison’s Annual Report on
Form 10-K for the year ended December 31, 2019 (File No. 1-14514) as Exhibit 10.1.4.7)
10.1.5.8 Amendment to the Consolidated Edison Retirement Plan, effective March 27, 2020. (Designated in Con Edison’s Quarterly Report
on Form 10-Q for the quarterly period ended June 30, 2020 (File No. 1-14514) as Exhibit 10.2)
10.1.5.9 Amendment to the Consolidated Edison Retirement Plan, effective January 31, 2020. (Designated in Con Edison's Annual Report
on Form 10-K for the year ended December 31, 2020 (File No. 1-14514) as Exhibit 10.1.4.9)
10.1.5.10 Amendment to the Consolidated Edison Retirement Plan, effective January 1, 2022. (Designated in Con Edison's Annual Report on
Form 10-K for the year ended December 31, 2022 (File No. 1-14514) as Exhibit 10.1.4.10)
204
CON EDISON ANNUAL REPORT 2022
10.1.5.11 Amendment to the Consolidated Edison Retirement Plan, effective October 1, 2022
10.1.6.1 The Consolidated Edison Thrift Savings Plan. (Designated in Con Edison’s Quarterly Report on Form 10-Q for the quarterly period
ended March 31, 2017 (File No. 1-14514) as Exhibit 10.1.2)
10.1.6.2 Amendment, dated December 18, 2017, to the Consolidated Edison Thrift Savings Plan. (Designated in Con Edison's Annual
Report on 10-K for the year ended December 31, 2017 (File No. 1-14514) as Exhibit 10.1.5.3
10.1.6.3 Amendment to the Consolidated Edison Thrift Savings Plan, effective January 1, 2019. (Designated in Con Edison's Annual Report
on 10-K for the year ended December 31, 2019 (File No. 1-14514) as Exhibit 10.1.5.3)
10.1.6.4 Amendment to the Consolidated Edison Thrift Savings Plan, effective August 1, 2019. (Designated in Con Edison's Annual Report
on 10-K for the year ended December 31, 2019 (File No. 1-14514) as Exhibit 10.1.5.4)
10.1.6.5 Amendment to the Consolidated Edison Thrift Savings Plan, effective August 1, 2019. (Designated in Con Edison's Annual Report
on 10-K for the year ended December 31, 2019 (File No. 1-14514) as Exhibit 10.1.5.5)
10.1.6.6 Amendment to the Consolidated Edison Thrift Savings Plan, effective January 1, 2020. (Designated in Con Edison's Annual Report
on Form 10-K for the year ended December 31, 2020 (File No. 1-14514) as Exhibit 10.1.5.6)
10.1.6.7 Amendment to the Consolidated Edison Thrift Savings Plan, effective January 1, 2022. (Designated in Con Edison's Annual Report
on Form 10-K for the year ended December 31, 2022 (File No. 1-14514) as Exhibit 10.1.5.7)
10.1.7 Consolidated Edison, Inc. Supplemental Defined Contribution Pension Plan. (Designated in Con Edison’s Quarterly Report on
Form 10-Q for the quarterly period ended September 30, 2019 (File No. 1-14514) as Exhibit 10.1)
10.1.8.1 Consolidated Edison, Inc. Long Term Incentive Plan (2003), as amended and restated effective as of December 26, 2012.
(Designated in Con Edison’s Annual Report on Form 10-K for the year ended December 31, 2012 (File No. 1-14514) as Exhibit
10.1.8.1)
10.1.8.2 Amendment Number 1, effective July 1, 2010, to the Consolidated Edison, Inc. Long Term Incentive Plan, as amended and
restated effective as of January 1, 2008. (Designated in Con Edison’s Quarterly Report on Form 10-Q for the quarterly period
ended June 30, 2010 as Exhibit 10.1)
10.1.8.3 Amendment Number 2, effective January 1, 2011, to the Consolidated Edison, Inc. Long Term Incentive Plan, as amended and
restated effective as of January 1, 2008. (Designated in Con Edison’s Annual Report on Form 10-K for the year ended December
31, 2010 (File No. 1-14514) as Exhibit 10.1.7.5)
10.1.8.4 Amendment Number One, dated February 17, 2022, to the Consolidated Edison, Inc. Executive Incentive Plan as amended and
restated effective January 1, 2020. (Designated in Con Edison’s Quarterly Report on Form 10-Q for the quarterly period ended
March 31, 2022 (File No. 1-14514) as Exhibit 10.1)
10.1.9.1 Consolidated Edison, Inc. Long Term Incentive Plan. (Designated in Con Edison’s Current Report on Form 8-K, dated May 20,
2013 (File No. 1-14514) as Exhibit 10)
10.1.9.2 Amendment No. 1 to the Consolidated Edison, Inc. Long Term Incentive Plan. (Designated in Con Edison’s Annual Report on
Form 10-K for the year ended December 31, 2016 (File No. 1-14514) as Exhibit 10.1.7.4)
10.1.9.3 Amendment No. 2 to the Consolidated Edison, Inc. Long Term Incentive Plan. (Designated in Con Edison’s Annual Report on
Form 10-K for the year ended December 31, 2016 (File No. 1-14514) as Exhibit 10.1.7.5)
10.1.9.4 Form of Performance Unit Award for Officers under the Consolidated Edison, Inc. Long Term Incentive Plan.(Designated in Con
Edison's Annual Report on Form 10-K for the year ended December 31, 2021 (File No. 1-14514) as Exhibit 10.1.8.4)
10.1.9.5 Form of Time-Based Unit Award under the Consolidated Edison, Inc. Long Term Incentive Plan. (Designated in Con Edison's
Annual Report on Form 10-K for the year ended December 31, 2021 (File No. 1-14514) as Exhibit 10.1.8.5)
10.1.10 The Consolidated Edison, Inc. Executive Incentive Plan, as amended and restated effective January 1, 2020. (Designated in Con
Edison's Annual Report on Form 10-K for the year ended December 31, 2021 (File No. 1-14514) as Exhibit 10.1.9)
10.1.11 Description of Directors’ Compensation, effective as of December 31,2022.
10.1.12
Letter, dated February 23, 2004, to Robert Hoglund. (Designated in Con Edison’s Current Report on Form 8-K, dated July 21,
2005, (File No. 1-14514) as Exhibit 10.5)
10.1.13 Employment offer letter between Con Edison and Timothy P. Cawley, dated November 19, 2020. (Designated in Con Edison’s
Current Report on Form 8-K, dated November 19, 2020 (File No. 1-14514) as Exhibit 10)
10.1.14 Purchase and Sale Agreement, dated as of September 20, 2018, by and between Sempra Solar Portfolio Holdings, LLC and CED
Southwest Holdings, Inc. (Designated in Con Edison’s Current Report on Form 8-K, dated September 20, 2018) (File No.1-14514)
as Exhibit 2)
10.1.15 Purchase and Sale Agreement, dated as of October 1, 2022, between Con Edison, as Seller, and RWE Renewables Americas,
LLC, as Buyer (Designated in Con Edison’s Current Report on Form 8-K, dated October 1, 2022 (File No. 1-14514) as Exhibit 10)
21.1 Subsidiaries of Con Edison (Designated in Con Edison's Annual Report on Form 10-K for the year ended December 31, 2019 (File
No. 1-14514) as Exhibit 21.1)
23.1 Consent of PricewaterhouseCoopers LLP
31.1.1 Rule 13a-14(a)/15d-14(a) Certifications – Chief Executive Officer
31.1.2 Rule 13a-14(a)/15d-14(a) Certifications – Chief Financial Officer
32.1.1 Section 1350 Certifications – Chief Executive Officer
CON EDISON ANNUAL REPORT 2022
205
32.1.2 Section 1350 Certifications – Chief Financial Officer
101.INS XBRL Instance Document
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Pursuant to Item 601(b)(4)(iii)(A) of Regulation S-K, instruments defining the rights of holders of long-term debt of
Con Edison’s subsidiaries other than CECONY, the total amount of which does not exceed ten percent of the total
assets of Con Edison and its subsidiaries on a consolidated basis, are not filed as exhibits to Con Edison’s Form
10-K or Form 10-Q. Con Edison agrees to furnish to the SEC upon request a copy of any such instrument.
CECONY
3.2.1.1
Restated Certificate of Incorporation of CECONY filed with the Department of State of the State of New York on December 31, 1984.
(Designated in CECONY’s Annual Report on Form 10-K for the year ended December 31, 2017 (File No. 1-1217) as Exhibit 3.2.1.1)
3.2.1.2 The certificates of amendment of Restated Certificate of Incorporation of CECONY filed with the Department of State of the State of
New York on the following dates: May 16, 1988; June 2, 1989; April 28, 1992; August 21, 1992 and February 18, 1998. (Designated
in CECONY’s Annual Report on Form 10-K for the year ended December 31, 2017 (File No. 1-1217) as Exhibit 3.2.1.2)
3.2.2 By-laws of CECONY, effective May 17, 2021. (Designated in CECONY’s Quarterly Report on Form 10-Q for the quarterly period
ended June 30, 2021 (File No. 1-14514) as Exhibit 3.2)
4.2.1 Participation Agreement, dated as of November 1, 2010, between NYSERDA and CECONY. (Designated in CECONY’s Annual
Report on Form 10-K for the year ended December 31, 2010 (File No. 1-1217) as Exhibit 4.2.2)
4.2.2 Participation Agreement, dated as of November 1, 2004, between NYSERDA and CECONY. (Designated in CECONY’s Current
Report on Form 8-K, dated November 9, 2004 (File No. 1-1217) as Exhibit 4.1)
4.2.3 Participation Agreement, dated as of May 1, 2005, between NYSERDA and CECONY. (Designated in CECONY’s Current Report on
Form 8-K, dated May 25, 2005 (File No. 1-1217) as Exhibit 4.1)
4.2.4.1 Trust Indenture, dated as of November 1, 2010 between NYSERDA and The Bank of New York Mellon, as trustee. (Designated in
CECONY’s Annual Report on Form 10-K for the year ended December 31, 2010 (File No. 1-1217) as Exhibit 4.2.9)
4.2.4.2 First Supplemental Indenture dated November 2, 2012 to the Trust Indenture dated as of November 1, 2010. (Designated in
CECONY’s Annual Report on Form 10-K for the year ended December 31, 2012 (File No. 1-1217) as Exhibit 4.2.9.2)
4.2.5 Indenture of Trust, dated as of November 1, 2004, between NYSERDA and The Bank of New York. (Designated in CECONY’s
Current Report on Form 8-K, dated November 9, 2004 (File No. 1-1217) as Exhibit 4.2)
4.2.6.1 Indenture of Trust, dated as of May 1, 2005, between NYSERDA and The Bank of New York. (Designated in CECONY’s Current
Report on Form 8-K, dated May 25, 2005 (File No. 1-1217) as Exhibit 4.2)
4.2.6.2 Supplemental Indenture of Trust, dated as of June 30, 2010, to Indenture of Trust, dated May 1, 2005 between NYSERDA and The
Bank of New York Mellon (formerly known as The Bank of New York), as trustee. (Designated in CECONY’s Annual Report on Form
10-K for the year ended December 31, 2010 (File No. 1-1217) as Exhibit 4.2.14.2)
4.2.7.1 Indenture, dated as of December 1, 1990, between CECONY and The Chase Manhattan Bank (National Association), as Trustee
(the “Debenture Indenture”). (Designated in CECONY’s Annual Report on Form 10-K for the year ended December 31, 2017 (File
No. 1-1217) as Exhibit 4.2.15.1)
4.2.7.2 First Supplemental Indenture (to the Debenture Indenture), dated as of March 6, 1996, between CECONY and The Chase
Manhattan Bank (National Association), as Trustee. (Designated in CECONY’s Annual Report on Form 10-K for the year ended
December 31, 2017 (File No. 1-1217) as Exhibit 4.2.15.2)
4.2.7.3 Second Supplemental Indenture (to the Debenture Indenture), dated as of June 23, 2005, between CECONY and JPMorgan Chase
Bank, N.A. (successor to The Chase Manhattan Bank (National Association)), as Trustee. (Designated in CECONY’s Current Report
on Form 8-K, dated November 16, 2005 (File No. 1-1217) as Exhibit 4.1)
206
CON EDISON ANNUAL REPORT 2022
4.2.8
The following forms of CECONY’s Debentures, which are designated as follows:
Securities Exchange Act
File No. 1-1217
Debenture Series
5.875% Series 2003 A
5.10% Series 2003 C
5.70% Series 2004 B
5.30% Series 2005 A
5.25% Series 2005 B
5.85% Series 2006 A
6.20% Series 2006 B
5.70% Series 2006 E
6.30% Series 2007 A
6.75% Series 2008 B
5.50% Series 2009 C
4.45% Series 2010 A
5.70% Series 2010 B
4.20% Series 2012 A
3.95% Series 2013 A
4.45% Series 2014 A
3.30% Series 2014 B
4.625% Series 2014 C
4.50% Series 2015 A
3.85% Series 2016 A
2.90% Series 2016 B
4.30% Series 2016 C
3.875% Series 2017 A
3.125% Series 2017 B
4.00% Series 2017 C
3.80% Series 2018 A
4.50% Series 2018 B
Floating Rate Series 2018 C
4.00% Series 2018 D
4.65% Series 2018 E
4.125% Series 2019 A
3.70% Series 2019 B
3.35% Series 2020 A
3.95% Series 2020 B
3.00% Series 2020 C
2.40% Series 2021 A
2.40% Series 2021 A
3.60% Series 2021 B
3.20% Series 2021 C
6.15% Series 2022 A
Form
8-K
8-K
8-K
8-K
8-K
8-K
8-K
8-K
8-K
8-K
8-K
8-K
8-K
8-K
8-K
8-K
8-K
8-K
8-K
8-K
8-K
8-K
8-K
8-K
8-K
8-K
8-K
8-K
8-K
8-K
8-K
8-K
8-K
8-K
8-K
8-K
8-K
8-K
8-K
8-K
Date
4/7/2003
6/10/2003
2/11/2004
3/7/2005
6/20/2005
3/9/2006
6/15/2006
12/1/2006
8/28/2007
4/4/2008
12/4/2009
6/2/2010
6/2/2010
3/8/2012
2/25/2013
3/3/2014
11/19/2014
11/19/2014
11/12/2015
6/14/2016
11/10/2016
11/10/2016
6/5/2017
11/13/2017
11/13/2017
5/7/2018
5/7/2018
6/21/2018
11/27/2018
11/27/2018
5/6/2019
11/5/2019
3/26/2020
3/26/2020
11/9/2020
6/3/2021
11/29/2021
6/3/2021
11/29/2021
11/9/2022
Exhibit
4
4.2
4.2
4
4
4
4
4.2
4
4.2
4
4.1
4.2
4
4
4
4.1
4.2
4
4
4.1
4.2
4
4.1
4.2
4.1
4.2
4.0
4.1
4.2
4
4
4.1
4.2
4
4.1
4.1
4.2
4.2
4
CON EDISON ANNUAL REPORT 2022
207
10.2.1
364-Day Revolving Credit Agreement, dated as of March 31, 2022, among CECONY, the lenders party thereto and Bank of
America, N.A., as Administrative Agent (Designated in CECONY’s Current Report on Form 8-K, dated March 31, 2022 (File No.
1-1217) as Exhibit 10).
10.2.2 Settlement Agreement, dated October 2, 2000, by and among CECONY, the Staff of the New York State Public Service
Commission and certain other parties. (Designated in CECONY’s Current Report on Form 8-K, dated September 22, 2000 (File
No. 1-1217) as Exhibit 10)
10.2.3 The Consolidated Edison Company of New York, Inc. Executive Incentive Plan, as amended and restated as of January 1, 2008.
(Designated in CECONY’s Annual Report on Form 10-K for the year ended December 31, 2008 (File No. 1-1217) as Exhibit
10.2.5)
10.2.4.1 Consolidated Edison Company of New York, Inc. Supplemental Retirement Income Plan, as amended and restated as of January
1, 2009. (Designated in CECONY’s Annual Report on Form 10-K for the year ended December 31, 2009 (File No. 1-1217) as
Exhibit 10.2.6)
10.2.4.2 Amendment, dated December 24, 2015, to the Consolidated Edison Company of New York, Inc. Supplemental Retirement Income
Plan (Designated in CECONY’s Annual Report on Form 10-K for the year ended December 31, 2015 (File No. 1-1217) as Exhibit
10.2.6.2)
10.2.4.3 Amendment One to the Consolidated Edison Company of New York, Inc. Supplemental Retirement Income Plan. (Designated in
CECONY’s Annual Report on Form 10-K for the year ended December 31, 2016 (File No. 1-1217) as Exhibit 10.2.6.3)
10.2.4.4 Amendment to the Consolidated Edison Company of New York, Inc. Supplemental Retirement Income Plan. (Designated in
CECONY's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2017 (File No. 1-1217) as Exhibit 10.2.1.1)
10.2.4.5 Amendment to the Consolidated Edison Company of New York, Inc. Supplemental Retirement Income Plan. (Designated in
CECONY's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2017 (File No. 1-1217) as Exhibit 10.2.1.2)
10.2.4.6 Amendment to the Consolidated Edison Company of New York, Inc. Supplemental Retirement Income Plan. (Designated in
CECONY’s Annual Report on Form 10-K for the year ended December 31, 2019 (File No. 1-1217) as Exhibit 10.2.3.6)
10.2.4.7 Amendment to the Consolidated Edison Company of New York, Inc. Supplemental Retirement Income Plan. (Designated in
CECONY’s Annual Report on Form 10-K for the year ended December 31, 2021 (File No. 1-1217) as Exhibit 10.2.3.7)
10.2.5.1 Deferred Compensation Plan for the Benefit of Trustees of CECONY, as amended effective January 1, 2008. (Designated in
CECONY’s Annual Report on Form 10-K for the year ended December 31, 2008 (File No. 1-1217) as Exhibit 10.2.7)
10.2.5.2 Amendment #1, dated December 26, 2012, to the Deferred Compensation Plan for the Benefit of Trustees of CECONY.
(Designated in CECONY’s Annual Report on Form 10-K for the year ended December 31, 2012 (File No. 1-1217) as Exhibit
10.2.7.2)
10.2.6 CECONY Supplemental Medical Benefits. (Designated in CECONY's Quarterly Report on Form 10-Q for the quarterly period
ended September 30, 2017 (File No. 1-1217) as Exhibit 10.2.1)
10.2.7 The Severance Pay Plan for Management Employees of Consolidated Edison Company of New York, Inc. and its Participating
Employers, as amended and restated effective as of December 1, 2021. (Designated in CECONY’s Annual Report on Form 10-K
for the year ended December 31, 2021 (File No. 1-1217) as Exhibit 10.2.6)
10.2.8 The Consolidated Edison Company of New York, Inc. Deferred Income Plan, as amended and restated as of January 1, 2019.
(Designated in CECONY’s Annual Report on Form 10-K for the year ended December 31, 2019 (File No. 1-1217) as Exhibit
10.2.7)
10.2.9 The Consolidated Edison Company of New York, Inc. 2005 Executive Incentive Plan, as amended and restated effective as of
January 1, 2018. (Designated in CECONY’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2018 (File
No. 1-1217) as Exhibit 10.2)
10.2.10.1 Trust Agreement, dated as of March 31, 1999, between CECONY and Mellon Bank, N.A., as Trustee. (Designated in CECONY’s
Annual Report on Form 10-K, for the year ended December 31, 2005 (File No. 1-1217) as Exhibit 10.2.13.1)
10.2.10.2 Amendment Number 1 to the CECONY Rabbi Trust, executed October 24, 2003, between CECONY and Mellon Bank, N.A., as
Trustee. (Designated in CECONY’s Annual Report on Form 10-K, for the year ended December 31, 2005 (File No. 1-1217) as
Exhibit 10.2.13.2)
23.2 Consent of PricewaterhouseCoopers LLP
31.2.1 Rule 13a-14(a)/15d-14(a) Certifications – Chief Executive Officer
31.2.2 Rule 13a-14(a)/15d-14(a) Certifications – Chief Financial Officer
32.2.1
Section 1350 Certifications – Chief Executive Officer
32.2.2
Section 1350 Certifications – Chief Financial Officer
101.INS
XBRL Instance Document
101.SCH
XBRL Taxonomy Extension Schema
101.CAL
XBRL Taxonomy Extension Calculation Linkbase
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XBRL Taxonomy Extension Definition Linkbase
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XBRL Taxonomy Extension Label Linkbase
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208
CON EDISON ANNUAL REPORT 2022
Item 16: Form 10-K Summary
None.
Supplemental Information to be Furnished With Reports Filed Pursuant to Section 15(d) of the Securities
Exchange Act of 1934 by Registrants Which Have Not Registered Securities Pursuant to Section 12 of the
Securities Exchange Act of 1934.
No annual report to security holders covering CECONY’s last fiscal year has been sent to its security holders. No
proxy statement, form of proxy or other proxy soliciting material has been sent to CECONY’s security holders during
such period.
CON EDISON ANNUAL REPORT 2022
209
Signatures
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, each Registrant has
duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, on February 16,
2023.
Consolidated Edison, Inc.
Consolidated Edison Company of New York, Inc.
By
/s/ Robert Hoglund
Robert Hoglund
Senior Vice President and
Chief Financial Officer
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the
following persons on behalf of the Registrant, and in the capacities indicated, on February 16, 2023.
Signature
/s/ Timothy P. Cawley
Timothy P. Cawley
/s/ Robert Hoglund
Robert Hoglund
/s/ Joseph Miller
Joseph Miller
/s/ Ellen V. Futter
Ellen V. Futter
/s/ John F. Killian
John F. Killian
/s/ Karol V. Mason
Karol V. Mason
/s/ John McAvoy
John McAvoy
/s/ Dwight A. McBride
Dwight A. McBride
/s/ William J. Mulrow
William J. Mulrow
/s/ Armando J. Olivera
Armando J. Olivera
/s/ Michael W. Ranger
Michael W. Ranger
/s/ Linda S. Sanford
Linda S. Sanford
/s/ Deirdre Stanley
Deirdre Stanley
/s/ L. Frederick Sutherland
L. Frederick Sutherland
Registrant
Con Edison
CECONY
Con Edison
CECONY
Con Edison
CECONY
Con Edison
CECONY
Con Edison
CECONY
Con Edison
CECONY
Con Edison
CECONY
Con Edison
CECONY
Con Edison
CECONY
Con Edison
CECONY
Con Edison
CECONY
Con Edison
CECONY
Con Edison
CECONY
Con Edison
CECONY
210
CON EDISON ANNUAL REPORT 2022
Title
Chairman of the Board, President, Chief Executive Officer
and Director (Principal Executive Officer)
Chairman of the Board, Chief Executive Officer and
Trustee (Principal Executive Officer)
Senior Vice President and Chief Financial Officer
(Principal Financial Officer)
Senior Vice President and Chief Financial Officer
(Principal Financial Officer)
Vice President, Controller and Chief Accounting Officer
(Principal Accounting Officer)
Vice President, Controller and Chief Accounting Officer
(Principal Accounting Officer)
Director
Trustee
Director
Trustee
Director
Trustee
Director
Trustee
Director
Trustee
Director
Trustee
Director
Trustee
Director
Trustee
Director
Trustee
Director
Trustee
Director
Trustee
Investor
Information
Management
CONSOLIDATED EDISON, INC.
Timothy P. Cawley, Chairman, President and Chief Executive Officer
Deneen L. Donnley, Senior Vice President and General Counsel
Robert Hoglund, Senior Vice President and Chief Financial Officer
Sylvia V. Dooley, Vice President and Corporate Secretary
Joseph Miller, Vice President and Controller
Yukari Saegusa, Vice President and Treasurer
CONSOLIDATED EDISON COMPANY OF NEW YORK, INC.
Timothy P. Cawley, Chairman and Chief Executive Officer
Matthew Ketschke, President
Deneen L. Donnley, Senior Vice President and General Counsel
Robert Hoglund, Senior Vice President and Chief Financial Officer
Sylvia V. Dooley, Vice President and Corporate Secretary
Senior Vice Presidents
Katherine L. Boden, Gas Operations
Jennifer Hensley, Corporate Affairs
Mary E. Kelly, Corporate Shared Services
Vicki H. Kuo, Customer Energy Solutions
Patrick G. McHugh, Electric Operations
Michele L. O’Connell, Customer Operations
Steven J. Parisi, Central Operations
Nancy M. Shannon, Utility Shared Services
Vice Presidents
Walter Alvarado, System and Transmission Operations
Lance P. Becca, Staten Island and Electric Services
Robert B. Brantley, Central Engineering
James R. Brennan, Brooklyn and Queens Electric Operations
Edmund P. Burke, Bronx and Westchester Electric Operations
Manoj S. Chouthai, IT Engineering and Operations
Gregory Elcock, Energy Efficiency and
Distributed Resource Planning
Hugh Grant, Substation Operations
Jeannine Haggerty, IT Solutions Delivery
Amr A. Hassan, Gas Engineering
Christina C. Ho, Steam Operations
LaAsia S. Hundley, Facilities and Field Services
Nicholas Inga, Gas Operations
Joan S. Jacobs, Learning and Inclusion
Jeffrey R. Kalata, Tax
Ivan Kimball, Energy Management
Kyle Kimball, Government Relations and Community Affairs
Venetia Lannon, Environment, Health and Safety
Nicole Leon, Human Resources
Scott A. Levinson, Legal Services
CON EDISON ANNUAL REPORT 2022
211
Joseph Miller, Controller
Richard B. Miller, Energy and Environmental Law
Edlyn Misquita, General Auditor
Lisa Primeggia, Manhattan Electric Operations
Christopher Raup, Energy Policy and Regulatory Affairs
Yukari Saegusa, Treasurer
Scott Sanders, Financial Planning and Analysis
Constantine Sanoulis, Construction
Lynton Scotland, Supply Chain and
Chief Procurement Officer
Matthew J. Sniffen, Emergency Preparedness
Kimberly R. Strong, Business Ethics and Compliance
and Chief Ethics and Compliance Officer
Raghusimha Sudhakara, Distributed Resource Integration
Shakira Wilson, Engineering and Planning
ORANGE AND ROCKLAND UTILITIES, INC.
Timothy P. Cawley, Chairman
Robert Sanchez, President and Chief Executive Officer
Joseph Miller, Chief Financial Officer and Controller
Yukari Saegusa, Treasurer
William J. Kelleher, Corporate Secretary
Vice Presidents
Orville O. Cocking, Operations
Janette Espino, Customer Service
CON EDISON TRANSMISSION, INC.
Robert Hoglund, Chairman
Stuart Nachmias, President and Chief Executive Officer
Sebrina M. Greene, Corporate Secretary
Vice President
Timothy J. Frost, Electric Transmission
Board of Directors
CONSOLIDATED EDISON, INC.
Timothy P. Cawley
Chairman, President and Chief Executive Officer
Consolidated Edison, Inc., New York, NY
Ellen V. Futter
President
American Museum of Natural History, New York, NY
John F. Killian
Former Executive Vice President and Chief Financial Officer
Verizon Communications Inc., New York, NY
Karol V. Mason
President
John Jay College of Criminal Justice, New York, NY
John McAvoy
Former Non-Executive Chairman
Consolidated Edison, Inc., New York, NY
Dwight A. McBride
President
The New School, New York, NY
William J. Mulrow
Senior Advisory Director
The Blackstone Group, New York, NY
Armando J. Olivera
Former President and Chief Executive Officer
Florida Power & Light Company, Juno Beach, FL
Michael W. Ranger
Senior Managing Director, Diamond Castle Holdings LLC;
and former President and Chief Executive Officer,
Covanta Holding Corporation
Linda S. Sanford
Former Senior Vice President Enterprise Transformation
International Business Machines Corporation (IBM), Armonk, NY
Deirdre Stanley
Executive Vice President and General Counsel
The Estée Lauder Companies, Inc., New York, NY
L. Frederick Sutherland
Former Executive Vice President and Chief Financial Officer
Aramark Corporation, Philadelphia, PA
212
CON EDISON ANNUAL REPORT 2022
Investor
Information
ANNUAL STOCKHOLDERS’ MEETING
DUPLICATE MAILINGS AND DUPLICATE ACCOUNTS
We plan to hold the Annual Meeting by means of remote
communications only. The 2023 Annual Meeting of
Stockholders will be held remotely 10 a.m. on Monday,
May 15, 2023. Shareholders may attend virtually by visiting
www.virtualshareholdermeeting.com/ED2023 and following
the instructions in the proxy materials. Proxies will be
requested from stockholders when the notice of meeting and
proxy statement are provided on or about April 3, 2023.
STOCK LISTING
The Common Stock is listed on the New York Stock
Exchange. The Common Stock ticker symbol is “ED.”
The press listing is “ConEdison” or “ConEd.”
TRANSFER AGENT AND REGISTRAR
Regular mail delivery:
Computershare Investor Services
PO Box 43006
Providence, RI 02940-3006
Overnight delivery:
Computershare Investor Services
Shareholder Communications Department
150 Royall St
Suite 101
Canton, MA 02021
United States of America
Toll-free telephone: 1-800-522-5522
TTY/Hearing Impaired: 1-800-952-9245
E-mail inquiries: web.queries@computershare.com
computershare.com/investor
https://www-us.computershare.com/Investor/Contact/
Index#SCUSEDIS
DIVIDEND REINVESTMENT
Stockholders of record with 50 or more shares of the
Company’s Common Stock are eligible to participate in the
Company’s Automatic Dividend Reinvestment and Cash
Payment Plan. For more information and a copy of the
plan prospectus, please call Computershare, Shareholder
Services, at 1-800-522-5522.
If you are a record holder, the Transfer Agent and Registrar
(see above) may deliver only one copy of the Company’s proxy
statement and Annual Report to multiple stockholders who
share an address unless the Transfer Agent and Registrar has
received contrary instructions from one or more of the
stockholders. To eliminate duplicate mailings, please contact
the Transfer Agent and Registrar, enclosing labels from the
mailings or label information where possible. Beneficial owners
who share an address and who are receiving multiple copies of
proxy materials and annual reports and wish to receive a single
copy of such materials in the future will need to contact their
broker, bank, or other nominee. Separate dividend checks and
form of proxies will continue to be sent for each account
on our records.
ADDITIONAL INFORMATION
The company reports details concerning its operations and
other matters annually to the Securities and Exchange
Commission on Form 10-K, which is available on the company
website at conEd.com or available without charge to the
company security holders on written request to:
Sylvia V. Dooley
Vice President and Corporate Secretary
Consolidated Edison, Inc.
4 Irving Place, Room 16-205
New York, NY 10003
CorporateSecretary@conEd.com
INVESTOR RELATIONS
Inquiries from security analysts, investment managers,
and other members of the financial community should be
addressed to:
Jan C. Childress
Director of Investor Relations
Consolidated Edison, Inc.
4 Irving Place, 2nd Floor West
New York, NY 10003
1-212-460-6611
childressj@conEd.com
For additional financial, operational, and customer service
information, visit conEdison.com.
CON EDISON ANNUAL REPORT 2022
213
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New York’s Clean Energy Vision
2025
NYS: 6 GW of private solar
NYC: 500 MW of energy storage
2030
NYS: 40% reduction in greenhouse gas emissions
(from 1990 levels)
NYS: 70% of electricity from renewable generation
NYS: 3 GW of energy storage
NYS: 10 GW of private solar
203 5
NYS: 9 GW offshore wind
NYC: City-owned vehicles to be electric models
(passenger and light, medium
and non-emergency vehicles)
NYS: All new passenger vehicles and trucks sold in
New York will be zero-emissions models
2040
2050
NYS: 100% zero-emissions electricity
NYS: 85% reduction in greenhouse gas emissions
(from 1990 levels)
How to Reach Us
How to Reach Us
Consolidated Edison, Inc.
Consolidated Edison, Inc.
4 Irving Place
4 Irving Place
New York, NY 10003
New York, NY 10003
1-212-460-4600
1-212-460-4600
conEdison.com
conEdison.com
REGULATED BUSINESSES
Consolidated Edison Company of New York, Inc.
Consolidated Edison Company of New York, Inc.
4 Irving Place
New York, NY 10003
4 Irving Place
1-212-460-4600
New York, NY 10003
conEd.com
1-212-460-4600
conEd.com
Orange and Rockland Utilities, Inc.
Orange and Rockland Utilities, Inc.
One Blue Hill Plaza
One Blue Hill Plaza
Pearl River, NY 10965
Pearl River, NY 10965
1-845-352-6000
1-845-352-6000
oru.com
oru.com
Con Edison Transmission, Inc.
Con Edison Transmission, Inc.
4 Irving Place
4 Irving Place
New York, NY 10003
New York, NY 10003
1-888-800-8712
1-888-800-8712
conEdTransmission.com
conEdTransmission.com
This annual report was printed by a printer with Forest
This annual report was printed by a printer with Forest
Stewardship Council® (FSC®) Chain of Custody certification.
The
Stewardship Council® (FSC®) Chain of Custody certification.
(FSC-CO13980) The cover and editorial sections are printed
cover and editorial sections are printed on recycled paper that
on recycled paper that contains 100% post-consumer waste,
contains 100% post-consumer waste, and the financial
and the financial section is printed on recycled paper that
section is printed on recycled paper that contains 10%
contains 10% post-consumer waste. All of these papers are
post-consumer waste. All of these papers are FSC-certified.
FSC-certified. The nonrecycled portions of these papers are
The nonrecycled portions of these papers are made from fiber
made from fiber sourced from well managed forests and other
sourced from well managed forests and other controlled wood
controlled wood sources.
sources.
Savings derived from using these papers, rather than 100%
Savings derived from using these papers, rather than 100%
virgin fiber, include:
virgin fiber, include:
106 trees preserved for the future
106 trees preserved for the future
48,047 gallons of wastewater not discharged
48,047 gallons of wastewater not discharged
3,089 pounds of solid waste not generated
3,089 pounds of solid waste not generated
8.2 pounds of hazardous air pollutants
8.2 pounds of hazardous air pollutants
not emitted
not emitted
8,419 pounds of greenhouse gases
8,419 pounds of greenhouse gases
prevented, equivalent to taking 1 car off
prevented, equivalent to taking 1 car off
the road for 1 year
the road for 1 year
Environmental impact estimates above were made
Environmental impact estimates above were made
using the Environmental Paper Network Paper Calculator.
using the Environmental Paper Network Paper Calculator.
For more information visit PaperCalculator.org.
For more information visit PaperCalculator.org.
Consolidated Edison, Inc. is one of the nation’s largest investor-owned energy-delivery companies, with approximately $16 billion in annual
Consolidated Edison, Inc. is one of the nation’s largest investor-owned energy-delivery companies, with approximately $16 billion in annual
revenues and $69 billion in assets as of December 31, 2022. The company provides a wide range of energy-related products and services to its
revenues and $69 billion in assets. The company provides a wide range of energy-related products and services to its customers through the
customers through the following subsidiaries: Consolidated Edison Company of New York, Inc. (CECONY), a regulated utility providing electric
following subsidiaries: Consolidated Edison Company of New York, Inc. (CECONY), a regulated utility providing electric service in New York City and
service in New York City and New York’s Westchester County, gas service in Manhattan, the Bronx, parts of Queens and parts of Westchester,
New York’s Westchester County, gas service in Manhattan, the Bronx, parts of Queens and parts of Westchester, and steam service in Manhattan;
and steam service in Manhattan; Orange and Rockland Utilities, Inc. (O&R), a regulated utility serving customers in a 1,300-square-mile-area in
Orange and Rockland Utilities, Inc. (O&R), a regulated utility serving customers in a 1,300-square-mile-area in southeastern New York State and
southeastern New York State and northern New Jersey; and Con Edison Transmission, Inc., which falls primarily under the oversight of the
northern New Jersey; and Con Edison Transmission, Inc., which falls primarily under the oversight of the Federal Energy Regulatory Commission
Federal Energy Regulatory Commission and through its subsidiaries invests in electric transmission projects supporting its parent company’s
and through its subsidiaries invests in electric transmission projects supporting its parent company’s effort to transition to clean, renewable energy.
effort to transition to clean, renewable energy. Con Edison Transmission manages, through joint ventures, both electric and gas assets while
Con Edison Transmission manages, through joint ventures, both electric and gas assets while seeking to develop electric transmission projects that
seeking to develop electric transmission projects that will bring clean, renewable electricity to customers, focusing on New York, New England,
will bring clean, renewable electricity to customers, focusing on New York, New England, the Mid-Atlantic states and the Midwest.
the Mid-Atlantic states and the Midwest.
Con Edison Annual Report 2022
Con Edison Annual Report 2022
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