Regulatory rate and approval risk
Utility earnings depend on allowed rates, capital recovery and approval of securities and transactions by the NYSPSC.
- Scope
- CECONY and O&R regulated operations
- Materiality
- high
Consolidated Edison, Inc
Consolidated Edison, Inc. is a New York-based utility holding company whose core businesses are the regulated electric, gas and steam delivery operations of Consolidated Edison Company of New York (CECONY) and the regulated electric and gas utility operations of Orange and Rockland Utilities (O&R). It also owns Con Edison Transmission, which develops and invests in electric transmission projects and holds interests in electric and gas assets through joint ventures. The company’s business is centered on serving dense urban and suburban load pockets in New York City, Westchester County, southeastern New York and northern New Jersey. Its earnings profile is shaped by regulated rate plans, infrastructure investment, weather, customer demand and ongoing state utility oversight. Con Edison positions itself as a provider of reliable, resilient, safe and cleaner energy infrastructure for its service territories.
31,1 %
12,0 %
+10,9 %
1.02
1.02
| % | |
|---|---|
| Regulated Electric Delivery | 55% Electric transmission and distribution service to residential, commercial and industrial customers in New York and New Jersey service territories. |
| Regulated Gas Delivery | 25% Local gas distribution service, including delivery and related utility operations under state-regulated rate plans. |
| Steam Delivery | 8% CECONY’s Manhattan steam network that produces and delivers steam for building heating and cooling. |
| Transmission and Joint Ventures | 12% Electric transmission development and ownership interests in electric and gas assets through joint ventures. |
Con Edison serves a broad base of end users rather than a small number of contract customers, with revenues largely...
- CECONY electric customersprimary
Millions of residential, commercial and institutional customers in New York City and Westchester who buy regulated electric delivery and reliability.
- CECONY gas customersprimary
Customers in Manhattan, the Bronx, Queens and Westchester who buy gas delivery for heating, cooking and other end uses.
- O&R electric and gas customerssecondary
Households and businesses in southeastern New York and northern New Jersey served by O&R and RECO.
- Steam customerssecondary
Manhattan buildings and institutions that use district steam for heating and cooling.
- Transmission and infrastructure counterpartiesemerging
Project partners and asset counterparties involved in electric transmission development and joint-venture holdings.
Con Edison’s business is overwhelmingly concentrated in the northeastern United States, especially New York City and...
- •New York City is the core operating area and the largest source of utility demand
- •Westchester County is a major electric and gas service territory for CECONY
- •Manhattan is unique because Con Edison operates the largest U.S. steam system there
- •Southeastern New York and northern New Jersey are served by O&R and RECO
- •The business is concentrated in regulated urban load centers with high infrastructure intensity
- •Local climate and resilience requirements materially affect capital investment needs
Con Edison’s strategy is to grow earnings through regulated utility rate base expansion and selective electric...
01
Grow regulated utility rate basemedium-term
Regulated investment is the main driver of long-term earnings and cash flow stability.
02
Improve system resilience and reliabilitymedium-term
Dense urban networks face high outage and storm-risk costs, and service quality is central to regulatory outcomes.
03
Advance clean-energy and compliance investmentsmedium-term
State and city climate mandates require infrastructure adaptation and can shape future allowed investment.
04
Optimize the transmission and joint-venture portfolioshort-term
Selective asset review can free capital and reduce exposure to underperforming or non-core investments.
Con Edison’s biggest risks come from regulation, because utility rates, allowed returns, capital recovery and security...
Climate change and extreme weather
Storms, flooding and long-term climate shifts can damage infrastructure and require costly resilience spending.
- Scope
- New York City, Westchester County and coastal/urban utility assets
- Materiality
- high
Supply-chain disruption and inflation
Utility construction and maintenance depend on long-lead equipment and labor that have faced shortages and higher prices.
- Scope
- Transmission and distribution capex programs
- Materiality
- high
Policy-driven demand erosion
Distributed generation, energy efficiency and electrification can reduce gas and steam usage and alter load growth.
- Scope
- Gas and steam businesses
- Materiality
- medium
Environmental remediation and legacy liability
The company remains responsible for hazardous substances used or produced in historical operations.
- Scope
- Owned or previously owned utility properties and facilities
- Materiality
- medium
Regulated revenue recognition and decoupling
Affects comparability of period-to-period utility revenue and operating income
Weather normalization
Impacts quarterly revenue and margin seasonality
Pensions and other postretirement benefits
Can move operating expense and equity
Contingencies and environmental liabilities
Can affect reserves, expense recognition and cash needs
Asset retirement obligations
Affects liabilities, depreciation and future cash outflows
: 11/08/2026