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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
___________________________________________________ 
FORM 10-K
___________________________________________________  
x☒    Annual Report Pursuant To Section 13 or 15(d) of the Securities Exchange Act of 1934
FOR THE FISCAL YEAR ENDED DECEMBER 31, 20172023
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 York13-3965100
State of Incorporation
I.R.S. Employer
ID. Number
4 Irving Place,
New York, New York 10003
(212)
4 Irving Place,
New York,New York10003
(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 York13-5009340
State of Incorporation
I.R.S. Employer
ID. Number
4 Irving Place,
New York, New York 10003
(212)
4 Irving Place,
New York,New York10003
(212)460-4600
 ___________________________________________________  




CON EDISON ANNUAL REPORT 20231


Securities Registered Pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol
Name of each exchange
on which registered
Consolidated Edison, Inc.,EDNew York Stock Exchange
Common Shares ($.10 par value)New York Stock Exchange

CON EDISON ANNUAL REPORT 20171


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)YesxxNo ¨No ¨
Consolidated Edison Company of New York, Inc. (CECONY)YesxxNo ¨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 EdisonYes ¨Nox
CECONYCon EdisonYes Yes ¨No¨xNo x
CECONYYes ¨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 EdisonYesxNo ¨
CECONYCon EdisonYesYes xNo x¨No ¨
CECONYYes xNo ¨
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted 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 and post such files).
Con EdisonYes xNoNo ¨¨
CECONYCECONYYes Yes xNox¨No ¨
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§ 229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. x

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
Con Edison
Large accelerated filerxAccelerated filer¨Non-accelerated filer¨
     Non-accelerated filer¨Smaller reporting company☐
¨

Emerging growth company
¨

☐
CECONY
Large accelerated filer¨¨Accelerated filer¨Non-accelerated filerx
Non-accelerated filerxSmaller 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 EdisonYes xNo ☐
CECONYYes xNo ☐


2
CON EDISON ANNUAL REPORT 2023


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☐
CECONYNot 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☐
CECONYNot Applicable
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).
Con EdisonYes ☐No x
Con EdisonCECONYYes Yes ☐No ¨xNo x
CECONYYes ¨No x

The aggregate market value of the common equity of Con Edison held by non-affiliates of Con Edison, as of June 30, 2017,2023, was approximately $24.7$31.2 billion.
As of January 31, 2018,2024, Con Edison had outstanding 310,397,070345,510,031 Common Shares ($.10 par value).
All of the outstanding common equity of CECONY is held by Con Edison.

2CON EDISON ANNUAL REPORT 2017




Documents Incorporated By Reference
Portions of Con Edison’s definitive proxy statement for its Annual Meeting of Stockholders to be held on May 21, 2018,20, 2024, to be filed with the Commission pursuant to Regulation 14A, not later than 120 days after December 31, 2017,2023, 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 201720233




Glossary of Terms
The following is a glossary of abbreviations or acronyms that are used in the Companies’ SEC reports:
Con Edison Companies
Con EdisonConsolidated Edison, Inc.
CECONYConsolidated Edison Company of New York, Inc.
Clean Energy BusinessesCon Edison Clean Energy Businesses, Inc., together with its subsidiariesa former subsidiary of Con Edison
Con Edison DevelopmentConsolidated Edison Development, Inc.
Con Edison EnergyConsolidated Edison Energy, Inc.
Con Edison SolutionsConsolidated Edison Solutions, Inc.
Con Edison TransmissionCon Edison Transmission, Inc., together with its subsidiaries
CET ElectricConsolidated Edison Transmission, LLC
CET GasCon Edison Gas Pipeline and Storage, LLC
O&ROrange and Rockland Utilities, Inc.
PikeRECOPike County Light & Power Company
RECORockland Electric Company
The CompaniesCon Edison and CECONY
The UtilitiesCECONY and O&R
Regulatory Agencies, Government Agencies and Other Organizations
EPAU.S. Environmental Protection Agency
FASBFinancial Accounting Standards Board
FERCFederal Energy Regulatory Commission
IASBInternational Accounting Standards Board
IRSInternal Revenue Service
NJBPUNew Jersey Board of Public Utilities
NJDEPNew Jersey Department of Environmental Protection
NYISONew York Independent System Operator
NYPANew York Power Authority
NYSDECNew York State Department of Environmental Conservation
NYSERDANYSDPSNew York State Department of Public Service
NYSERDANew York State Energy Research and Development Authority
NYSPSCNew York State Public Service Commission
NYSRCNew York State Reliability Council, LLC
PJMPJM Interconnection LLC
SECU.S. Securities and Exchange Commission
Accounting
AFUDCAllowance for funds used during construction
ASUAccounting Standards Update
GAAPGenerally Accepted Accounting Principles in the United States of America
LILOHLBVLease In/Lease OutHypothetical Liquidation at Book Value
OCINOLNet Operating Loss
OCIOther Comprehensive Income
VIEVariable Interest Entity


4
CON EDISON ANNUAL REPORT 20172023





Environmental
CO2Carbon dioxide
GHGGreenhouse gases
Environmental
CO2Carbon dioxide
GHGGreenhouse gases
MGP SitesManufactured gas plant sites
PCBsPolychlorinated biphenyls
PRPPotentially responsible party
RGGIRegional Greenhouse Gas Initiative
SuperfundFederal Comprehensive Environmental Response, Compensation and Liability Act of 1980 and similar state statutes
Units of Measure
ACAlternating current
ACBcfAlternating current
BcfBillion cubic feet
DtDekatherms
kVKilovolt
kWhKilowatt-hour
MDtThousand dekatherms
MMlbMlbMillionThousands of pounds
MVAMMlbMegavolt ampereMillion pounds
MWMVAMegavolt ampere
MWMegawatt or thousand kilowatts
MWhMegawatt hour
Other
AMIAdvanced Metering Infrastructure
Other
CLCPAClimate Leadership and Community Protection Act
AMICOSOAdvanced metering infrastructure
COSOCommittee of Sponsoring Organizations of the Treadway Commission
DERCOVID-19Coronavirus Disease 2019
DERDistributed energy resources
EGWPFitchEmployer Group Waiver PlanFitch Ratings
FitchLTIPFitch Ratings
LTIPLong Term Incentive Plan
Moody’sMoody’s Investors Service
REVReforming the Energy Vision
S&PS&P Global Ratings
TCJAThe federal Tax Cuts and Jobs Act of 2017, as enacted on December 22, 2017
VaRValue-at-Risk

CON EDISON ANNUAL REPORT 201720235




TABLE OF CONTENTS
PAGE
7
9
9
109
Item 1:
1314
Item 1A:
40
Item 1B:
4344
Item 2:1C:
4344
Item 2:
46
Item 3:
4446
Item 4:
4446
4547
Item 5:
4648
Item 6:
4749
Item 7:
4850
Item 7A:
8079
Item 8:
8180
Item 9:
164176
Item 9A:
164176
Item 9B:
164176
Item 9C:
176
Item 10:
165177
Item 11:
165177
Item 12:
165177
Item 13:
165177
Item 14:
165177
Item 15:
167179
Item 16:
172184
173186



6
CON EDISON ANNUAL REPORT 20172023





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 an environmentally sound manner;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 and cost optimization.experience.
Con Edison is a holding company that owns:

•Consolidated Edison Company of New York, Inc. (CECONY), which delivers electricity, naturalprovides electric service and gas and steam to customersservice in New York City and Westchester County;County and steam service in parts of Manhattan;
•Orange & Rockland Utilities, Inc. (O&R), which togetheralong with its New Jersey electric utility subsidiary, Rockland Electric Company delivers electricity and natural gas(together referred to customers primarily locatedherein as O&R), provides electric service in southeastern New York State and northern New Jersey and gas service in southeastern New York (O&R, together with CECONY referred to as the Utilities); and
Con Edison Clean Energy Businesses, Inc., which through its subsidiaries develops, owns and operates renewable and 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); 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 and "Rate Plans" in Note B to the financial statements in Item 8.
 
Selected Financial Data
Con Edison
  For the Year Ended December 31,
(Millions of Dollars, except per share amounts)2013 2014 2015 2016 2017 
Operating revenues$12,354 $12,919 $12,554 $12,075 $12,033 
Energy costs4,054 4,513 3,716 3,088 2,625 
Operating income2,244 2,209 2,427 2,575 2,610 
Net income1,062 1,092 1,193 1,245 1,525(g)
Total assets (e)(f)40,451 44,071(a)45,642(b)48,255(c)48,111(d)
Long-term debt (e)10,415 11,546 12,006 14,735 14,731 
Total equity12,245 12,585 13,061 14,306 15,425 
Net Income per common share – basic$3.62 $3.73 $4.07 $4.15 $4.97 
Net Income per common share – diluted$3.61 $3.71 $4.05 $4.12 $4.94 
Dividends declared per common share$2.46 $2.52 $2.60 $2.68 $2.76 
Book value per share$41.81 $42.97 $44.50 $46.91 $49.72 
Average common shares outstanding (millions)
293 293 293 300 307 
Stock price low$54.33 $52.23 $56.86 $63.47 $72.13 
Stock price high$63.66 $68.92 $72.25 $81.88 $89.70 
(a)Reflects a $2,116 million increase in regulatory assets for unrecognized pension and other postretirement costs and a $1,391 million increase in net plant. See Notes B, E and F to the financial statements in Item 8.
(b)Reflects a $2,382 million increase in net plant offset by a $970 million decrease in regulatory assets for unrecognized pension and other postretirement costs. See Notes B, E and F to the financial statements in Item 8.

CON EDISON ANNUAL REPORT 20177



(c)Reflects a $3,007 million increase in net plant offset by a $1,002 million decrease in regulatory assets for unrecognized pension and other postretirement costs. See Notes B, E and F to the financial statements in Item 8.
(d)Reflects a $2,384 million increase in net plant, offset by decreases in regulatory assets resulting from the enactment of the federal Tax Cuts and Jobs Act of 2017, as enacted on December 22, 2017 (TCJA) of $2,418 million (including the netting of $1,168 million against the regulatory liability for future income tax) and unrecognized pension and other postretirement costs of $348 million. See Notes B, E, F and L to the financial statements in Item 8.
(e)Reflects $74 million and $85 million in 2013 and 2014, respectively, related to the adoption of Accounting Standards Update (ASU) No. 2015-03, “Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs.”
(f)Reflects $122 million and $152 million in 2013 and 2014, respectively, related to the adoption of ASU No. 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes.”
(g)
Upon enactment of the TCJA, Con Edison re-measured its deferred tax assets and liabilities based upon the 21 percent corporate income tax rate under the TCJA. As a result, Con Edison decreased its net deferred tax liabilities by $5,312 million, recognized $259 million (or $0.85 per share) in net income, decreased its regulatory asset for future income tax by $1,250 million, decreased its regulatory asset for revenue taxes by $90 million, and accrued a regulatory liability for federal income tax rate change of $3,713 million. See “Other Regulatory Matters” in Note B and Note L to the financial statements in Item 8.

CECONY
  For the Year Ended December 31,
(Millions of Dollars)2013 2014 2015 2016 2017 
Operating revenues$10,430 $10,786 $10,328 $10,165 $10,468 
Energy costs2,873 2,985 2,304 2,059 2,141 
Operating income2,060 2,139 2,247 2,262 2,405 
Net income1,020 1,058 1,084 1,056 1,104 
Total assets (e)(f)36,095 39,443(a)40,230(b)40,856(c)40,451(d)
Long-term debt (e)9,303 10,788 10,787 12,073 12,065 
Shareholder’s equity10,847 11,188 11,415 11,829 12,439 
(a)
Reflects a $1,999 million increase in regulatory assets for unrecognized pension and other postretirement costs and a $1,440 million increase in net plant. See Notes B, E and F to the financial statements in Item 8.
(b)
Reflects a $1,725 million increase in net plant and a $912 million decrease in regulatory assets for unrecognized pension and other postretirement costs. See Notes B, E and F to the financial statements in Item 8.
(c)Reflects a $1,804 million increase in net plant and a $967 million decrease in regulatory assets for unrecognized pension and other postretirement costs. See Notes B, E and F to the financial statements in Item 8.
(d)Reflects a $2,090 million increase in net plant, offset by decreases in regulatory assets resulting from the enactment of the TCJA of $2,305 million (including the netting of $1,123 million against the regulatory liability for future income tax) and unrecognized pension and other postretirement costs of $354 million. See Notes B, E, F and L to the financial statements in Item 8.
(e)Reflects $63 million and $76 million in 2013 and 2014, respectively, related to the adoption of ASU No. 2015-03, “Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs.”
(f)Reflects $100 million and $118 million in 2013 and 2014, respectively, related to the adoption of ASU No. 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes.”

Significant 2017 Developments and Outlook
•Con Edison reported 20172023 net income of $1,525 $2,519 million or $4.97$7.25 a share compared with $1,245$1,660 million or $4.15$4.68 a share in 2016.2022. Adjusted earnings were $1,264$1,762 million or $5.07 a share in 2023 compared with $1,620 million or $4.12$4.57 a share in 2017 compared with $1,198 million or $3.99 a share in 2016.2022. See “Results of Operations” in Item 7 and “Non-GAAP Financial Measure”Measures,” below.
•In 2017,2023, the Utilities invested $3,093$4,379 million to upgrade and reinforce their energy delivery systems and Con Edison Transmission invested $66 million in electric transmission and gas pipeline and storage businesses and the Clean Energy Businesses invested $447$49 million primarily in renewable electric production projects. See "Capital Requirementstransmission. For 2024, 2025, 2026, 2027 and Resources" in Item 1 and Note U to the financial statements in Item 8.
In 2018,2028, the Utilities expect to invest $3,209$4,822 million, $5,212 million, $5,879 million, $5,874 million and $5,867 million, respectively, for their energy delivery systems and Con Edison Transmission expects to invest $360$27 million, $31 million, $108 million, $113 million and $119 million, respectively, primarily in gas pipeline businesseselectric transmission. See "Capital Requirements and the Clean Energy Businesses expect to invest $400 millionResources - Capital Requirements" in renewable electric production projects. Item 1.
•Con Edison plans to meet its 2018 capital requirements for 2024 through 2028 through internally-generated funds and the issuance of securities. The company's plans include the issuance of between $1,300 million and $1,800 million of long-term debt at the Utilities, and the issuance of additional debt secured by its renewable electric production projects. Thecommon equity. See “Capital Requirements and Resources - Capital Requirements” in Item 1. Con Edison's plans also include the issuance of up to $450$3,250 million of commonlong-term debt in 2024 and up to $1,000 million of long-term debt in 2025, including for maturing securities, at the Utilities and approximately $6,000 million in aggregate of long-term debt, including for maturing securities, at the Utilities during 2026 through 2028. Except for equity in addition to equityissued under its dividend reinvestment, employee stock purchase and long termlong-term incentive plans. The plans, doCon Edison does not plan to issue common equity in 2024 and plans to issue common equity of approximately $1,300 million in 2025 and up to $2,800 million in aggregate during 2026 through 2028. Con Edison’s estimates of its capital requirements and related financing plans reflect information available and assumptions at the provision totime the statements are made and include, among other things, the assumptions that Con Edison’s non-utility gas transmission investments remain unchanged through 2028 and the Utilities’ customers of any of the benefits of the federal Tax Cutsforecasted capital investments and Jobs Act of 2017, as enacted on December 22, 2017 (TCJA) thatfinancing plans through 2028 are approved by the New York State Public Service Commission (NYSPSC). Actual developments and the New Jersey Boardtiming and amount of Public Utilities (NJBPU)funding may require to be provided. See “Changes to Tax Laws Could Adversely Affect the Companies” in Item 1A, “Other Regulatorydiffer materially.


8CON EDISON ANNUAL REPORT 201720237





Matters” in Note B and Note L to the financial statements in Item 8. See “Capital Requirements and Resources” in Item 1.
•CECONY forecasts average annual growthincrease in peak demand in its service area at design conditions over the next five years for electric and gaselectricity to be approximately 0.10.7 percent and 1.2 percent, respectively, and an average annual decrease in gas and steam peak demand in its service area at design weather conditions over the next five years to be approximately 0.8 percent and 0.5 percent.percent, respectively. O&R forecasts an average annual growthincrease in electric peak demand in its service area at design conditions over the next five years to be flatapproximately 2.0 percent and average annual growthdecrease in gas peak demand in its service area over the next five years at design conditions to be approximately 0.30.2 percent. See “The Utilities” in Item 1.

•In 2017,March 2023, Con Edison completed the NYSPSC continued its Reformingsale of all of the stock of Con Edison Clean Energy Vision (REV) proceeding to improve system efficiencyBusinesses, Inc. (the “Clean Energy Businesses”). See Note W and reliability, encourage renewable energy and distributed energy resources and empower customer choice. The NYSPSC, among other things, issued an order that changes the way distributed energy resources are compensated and begins to phase out net energy metering. Also, CECONY submitted a petition to the NYSPSC for authority to develop smart solutions for gas customers by seeking to apply REV concepts and issued a request for proposals for non-pipeline solutions to a gas pipeline need the company identified. See “Utility Regulation – State Utility Regulation – Reforming the Energy Vision” in Item 1.
In 2017, the NYSPSC approved three-year CECONY electric and gas rate plans and a settlement agreement in its proceedings related to CECONY’s practices of qualifying persons to perform plastic fusions on gas facilities and alleged violations of gas safety regulations in connection with a March 2014 Manhattan explosion and fire. The NYSPSC also issued orders relating to an April 2017 subway power outage and the TCJA. See Notes B and HNote X to the financial statements in Item 8.
Upon enactment•In June 2023, the New York Independent System Operator selected the Propel NY Energy transmission project that was jointly proposed by New York Transco LLC (New York Transco) and the New York Power Authority. Con Edison Transmission owns a 41.7 percent interest in New York Transco’s share of the TCJA,Propel NY Energy project, a 90-mile electric transmission project with an in-service date of 2030. See "Con Edison Transmission," below.

•During the second quarter of 2023, construction of New York Transco’s New York Energy Solution (NYES) project to relieve transmission congestion between upstate and downstate was completed. Construction of the associated Dover Station, an additional network upgrade to support the NYES project, has not been completed. Con Edison re-measured its deferred tax assetsTransmission owns a 45.7 percent interest in NYES. See "Con Edison Transmission," below.

•In July 2023, the NYSPSC approved the February 2023 joint proposal among CECONY, the New York State Department of Public Service (NYSDPS) and liabilities based uponother parties for electric and gas rate plans for the 21 percent corporate income tax rate under the TCJA. As a result, Con Edison decreased its net deferred tax liabilities by $5,312 million, recognized $259 million (or $0.85 per share) in net income, decreased its regulatory asset for future income tax by $1,250 million, decreased its regulatory asset for revenue taxes by $90 million, and accrued a regulatory liability for federal income tax rate change of $3,713 million.three-year period January 1, 2023 through December 31, 2025. See "Other Regulatory Matters""Rate Plans” in Note B and Note L to the financial statements in Item 8.

•In November 2023, the NYSPSC approved the September 2023 joint proposal among CECONY, the NYSDPS and other parties for a steam rate plan for the three-year period November 1, 2023 through October 31, 2026 that includes, among other provisions, a weather normalization adjustment to reflect normal weather conditions during the heating season. See "Rate Plans” in Note B to the financial statements in Item 8.

•In November 2023, CECONY and O&R filed petitions with the NYSPSC for approval to make long-term investments of $903 million and $411 million, respectively, between 2025 and 2029 to protect their electric systems from climate change. See “Clean Energy Future,” below.

•In January 2018,2024, O&R filed a request with the NYSPSC for electric and gas rate increases of $20.3$18.1 million and $4.5$14.4 million, respectively, effective January 2019.2025. See “Rate Plans”"Rate Plans" in Note B to the financial statements in Item 8.

•In January 2024, the NYSPSC approved CECONY's August 2023 petition requesting authorization and cost recovery to construct two new substations in Jamaica, Queens (the Reliable Clean City - Idlewild Project) with an estimated cost of $1,200 million and an estimated in-service date of May 2028. See "Rate Plans" in Note B to the financial statements in Item 8.

•The 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.






8
CON EDISON ANNUAL REPORT 2023


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 public may read and copy any materials that the Companies file with the SEC at the SEC’s Public Reference Room at 100 F Street, N.E., Room 1580 Washington, D.C. 20549. The public may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. 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 Corporate GovernanceSafety, Environment, Operations, and NominatingSustainability 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 2022 sustainability report.
Information on the Companies’ websites is not incorporated herein.



CON EDISON ANNUAL REPORT 20179



Forward-Looking Statements
This report includescontains 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”"forecasts," "expects," "estimates," "anticipates," "intends," "believes," "plans," "will," "target," "guidance," "potential," "consider" and similar expressions identify forward-looking statements. Forward-lookingThe forward-looking statements are based onreflect 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 MeasureMeasures
Adjusted earnings is aand adjusted earnings per share are financial measuremeasures that isare not determined in accordance with generally accepted accounting principles in the United States of America (GAAP). ThisThese non-GAAP financial measuremeasures 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 excludesand adjusted earnings per share exclude from net income thefor common stock and net mark-to-market changes in the fair value of the derivative instruments the Clean Energy Businesses use to economically hedge market price fluctuations in related underlying physical transactions for the purchase or sale of electricity and gas. Adjusted earnings may also exclude from net income per share, respectively, certain other items that the company does not consider indicative of its ongoing financial performance. Management uses thisthese non-GAAP financial measuremeasures to facilitate the analysis of the company's financial performance as compared to its internal budgets and previous financial results. Management also uses this non-GAAP financial measureresults and to communicate to investors and others the company’s expectations regarding its future earnings and dividends on its common stock. Management believes that thisthese non-GAAP financial measuremeasures are also is 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.

(Millions of Dollars, except per share amounts)2013
2014
2015
2016
2017
Reported net income – GAAP basis$1,062$1,092$1,193$1,245$1,525
Gain on sale of the Clean Energy Businesses' retail electric supply business (a)—
—
—
(56)—
Goodwill impairment related to the Clean Energy Businesses' energy service business (b)—
—
—
12—
Impairment of assets held for sale (c)—
—
3—
—
Gain on sale of solar electric production projects (d)—
(26)—
—
(1)
Loss from LILO transactions (e)951—
—
—
Enactment of the TCJA (f)—
—
—
—
(259)
Net mark-to-market effects of the Clean Energy Businesses (g)(45)73—
(3)(1)
Adjusted earnings$1,112$1,140$1,196$1,198$1,264
Reported earnings per share – GAAP basis (basic)$3.62$3.73$4.07$4.15$4.97
Gain on sale of the Clean Energy Businesses' retail electric supply business—
—
—
(0.19)—
Goodwill impairment related to the Clean Energy Businesses' energy service business—
—
—
0.04—
Impairment of assets held for sale—
—
0.01—
—
Gain on sale of solar electric production projects—
(0.09)—
—
—
Loss from LILO transactions0.32—
—
—
—
Enactment of the TCJA—
—
—
—
(0.85)
Net mark-to-market effects of the Clean Energy Businesses(0.14)0.25—
(0.01)—
Adjusted earnings per share$3.80$3.89$4.08$3.99$4.12

(a)After taxes of $(48) million, which includes an adjustment for the apportionment of state income taxes. See Note U to the financial statements in Item 8.
(b)After taxes of $3 million. See Note K to the financial statements in Item 8.
(c)After taxes of $2 million, recorded related to Pike County Light & Power Company (Pike), which O&R sold in 2016. See Note U to the financial statements in Item 8.
(d)After taxes of $(19) million in 2014.
(e)In 2013, a court disallowed tax losses claimed by Con Edison relating to Con Edison Development’s Lease In/Lease Out (LILO) transactions and the company subsequently terminated the transactions, resulting in a charge to earnings of $95 million (after taxes of $63 million). In 2014, adjustments were made to taxes and accrued interest.
(f)Upon enactment of the TCJA, Con Edison re-measured its deferred tax assets and liabilities based upon the 21 percent corporate income tax rate under the TCJA. As a result, Con Edison decreased its net deferred tax liabilities by $5,312 million, recognized $259 million (or $0.85 per share) in net income, decreased its regulatory asset for future income tax by $1,250 million, decreased its regulatory asset for revenue taxes by $90 million, and accrued a regulatory liability for federal income tax rate change of $3,713 million. See “Other Regulatory Matters” in Note B and Note L to the financial statements in Item 8.
(g)After taxes of $(30) million, $55 million and $(2) million for the years ended December 31, 2013, 2014 and 2016, respectively.











CON EDISON ANNUAL REPORT 20239


(Millions of Dollars, except per share amounts)202120222023
Reported net income for common stock – GAAP basis$1,346$1,660$2,519
Gain and other impacts related to sale of the Clean Energy Businesses (pre-tax) (a) (b)—(13)(887)
Income taxes (c)—127113
Gain and other impacts related to sale of the Clean Energy Businesses (net of tax) (a) (b)—114(774)
HLBV effects (pre-tax) (d)(142)(61)11
Income taxes (e)4419(3)
HLBV effects (net of tax) (d)(98)(42)8
Net mark-to-market effects (pre-tax)(53)(181)13
Income taxes (f)1656(4)
Net mark-to-market effects (net of tax)(37)(125)9
Loss from sale of a renewable electric project (pre-tax)4——
Income taxes (g)(1)——
Loss from sale of a renewable electric project (net of tax)3——
Remeasurement of deferred state taxes related to dispositions prior to 2022 (net of federal taxes)—13—
Remeasurement of deferred state taxes related to dispositions prior to 2022 (net of federal taxes)—13—
Impairment loss related to investment in Stagecoach Gas Services LLC (pre-tax) (h)212——
Income taxes (g)(65)——
Impairment loss related to investment in Stagecoach Gas Services LLC (net of tax) (h)147——
Impairment loss related to investment in Honeoye Storage Corporation (pre-tax) (i)5——
Impairment loss related to investment in Honeoye Storage Corporation (net of tax) (i)5——
Impairment loss related to investment in Mountain Valley Pipeline, LLC (pre-tax) (j)231——
Income taxes (g)(69)——
Impairment loss related to investment in Mountain Valley Pipeline, LLC (net of tax) (j)162——
Adjusted earnings (Non-GAAP)$1,528$1,620$1,762
Reported earnings per share – GAAP basis (basic)$3.86$4.68$7.25
Gain and other impacts related to sale of the Clean Energy Businesses (pre-tax) (a) (b)—(0.03)(2.55)
Income taxes (c)—0.350.33
Gain and other impacts related to sale of the Clean Energy Businesses(net of tax) (a) (b)—0.32(2.22)
HLBV effects (pre-tax) (d)(0.41)(0.17)0.02
Income taxes (e)0.120.05 (0.01)
HLBV effects (net of tax) (d)(0.29)(0.12)0.01
Net mark-to-market effects (pre-tax)(0.15)(0.51)0.04
Income taxes (f)0.050.16 (0.01)
Net mark-to-market effects(0.10)(0.35)0.03
Loss from sale of a renewable electric project (pre-tax)0.01——
Loss from sale of a renewable electric project (net of tax)0.01——
Remeasurement of deferred state taxes related to dispositions prior to 2022 (net of federal taxes)—0.04—
Remeasurement of deferred state taxes related to dispositions prior to 2022 (net of federal taxes)—0.04—
Impairment loss related to investment in Stagecoach Gas Services LLC (pre-tax) (h)0.61——
Income taxes (g)(0.19)——
Impairment loss related to investment in Stagecoach Gas Services LLC (net of tax) (h)0.42——
Impairment loss related to investment in Honeoye Storage Corporation (pre-tax) (i)0.02——
Impairment loss related to investment in Honeoye Storage Corporation (net of tax) (i)0.02——
Impairment loss related to investment in Mountain Valley Pipeline, LLC (pre-tax) (j)0.66——
Income taxes (g)(0.19)——
Impairment loss related to investment in Mountain Valley Pipeline, LLC (net of tax) (j)0.47——
Adjusted earnings per share (Non-GAAP)$4.39$4.57$5.07



10
CON EDISON ANNUAL REPORT 20172023



a.On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note W and Note X to the financial statements in Item 8.
b.The gain and other impacts related to the sale of the Clean Energy Businesses for the year ended December 31, 2023 is comprised of the gain on the sale of the Clean Energy Businesses ($(2.49) a share and $(2.21) a share net of tax or $(865) million and $(767) million net of tax), transaction costs and other accruals ($0.05 a share and $0.04 a share net of tax or $19 million and $14 million net of tax) and the effects of ceasing to record depreciation and amortization expenses on the Clean Energy Businesses’ assets ($(0.11) a share and $(0.07) a share net of tax or $(41) million and $(28) million net of tax). The impacts related to the 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.
c.Amounts shown include the impact of the changes in state unitary tax apportionments ($0.02 a share net of federal taxes or $7 million net of federal taxes) for the year ended December 31, 2023. The amount of income taxes for transaction costs and other accruals and the effects of ceasing to record depreciation and amortization expenses were calculated using a combined federal and state income tax rate of 27 percent and 32 percent, respectively, for the year ended December 31, 2023. The amount of income taxes for the gain on the sale of the Clean Energy Businesses had an effective tax rate of 11 percent for the year ended December 31, 2023. 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) for the year ended December 31, 2022. 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 percent and 31 percent for the year ended December 31, 2022, respectively.
d.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.
e.The amount of income taxes was calculated using a combined federal and state income tax rate of 25 percent, 31 percent and 31 percent, for the year ended December 31, 2023, 2022 and 2021, respectively.
f.The amount of income taxes was calculated using a combined federal and state income tax rate of 32 percent, 31 percent and 32 percent for the year ended December 31, 2023, 2022 and 2021, respectively.
g.The amount of income taxes was calculated using a combined federal and state income tax rate between 26-30 percent for the year ended December 31, 2021.
h.Loss recognized with respect to the partial impairment of Con Edison Transmission’s investment in Stagecoach Gas Services LLC. See "Investments - 2021 Partial Impairment of Investment in Stagecoach Gas Services" in Note A and Note W.
i.Loss recognized with respect to the goodwill impairment of Con Edison Transmission’s investment in Honeoye Storage Corporation. See Note K.
j.Losses recognized with respect to the partial impairments of Con Edison Transmission's investment in Mountain Valley Pipeline, LLC. See "Investments in Mountain Valley Pipeline, LLC (MVP)" in Note A to the financial statements in Item 8.


CON EDISON ANNUAL REPORT 202311




Item 1:    Business


Contents of Item 1Page
1314
CECONY
1314
Electric
1314
Gas
1314
Steam
1314
O&R
1415
Electric
1415
Gas
1415
Clean Energy Businesses
14
Con Edison Transmission
1415
1415
State Utility Regulation
1415
Regulators
1415
New York Utility Industry
1516
Rate Plans
1716
Liability for Service Interruptions
1817
Generic Proceedings
1817
Federal Utility Regulation
1917
New York Independent System Operator (NYISO)
1918
1918
2019
CECONY
2019
Electric Operations
2019
Electric Facilities
2019
Electric Sales and Deliveries
20
Electric Peak Demand
2120
Electric Supply
2120
Gas OperationsElectric Reliability Needs
2321
Gas FacilitiesOperations
2322
Gas Facilities
22
Gas Sales and Deliveries
2322
Gas Peak Demand
2423
Gas Supply
2423
Steam Operations
2423
Steam Facilities
2423
Steam Sales and Deliveries
24
Steam Peak Demand and Capacity
2524
Steam Supply
2524
O&R
2524
Electric Operations
2524
Electric Facilities
2524
Electric Sales and Deliveries
2524
Electric Peak Demand
2625
Electric Supply
2625
Gas Operations
26
Gas Facilities
26
Gas Sales and Deliveries
2726
Gas Peak Demand
2726
Gas Supply
27
 




12
CON EDISON ANNUAL REPORT 2017112023




Contents of Item 1Page
28
Con Edison Development
28
Con Edison Energy
29
Con Edison Solutions
29
Con Edison Transmission
2927
CET Electric
29
30
Capital Requirements and Resources
3128
3431
Climate ChangeClean Energy Future
3431
Environmental SustainabilityClimate Change
3634
CECONYEnvironmental Sustainability
3635
O&RCECONY
3935
O&R
38
Other Federal, State and Local Environmental Provisions
39
40
40
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.

12CON EDISON ANNUAL REPORT 2017202313





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
CECONYO&RCon Edison Transmission
•RECO


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 and energy infrastructure projects and provide energy-related products and services to wholesale and retail customers. Con Edison Transmission invests in electric transmission facilitiesprojects and manages both electric and gas pipelineassets while seeking to develop electric transmission projects. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses and storage facilities.therefore 2023 reflects the financial results for the two months ended February 2023. See Note W and Note X to the financial statements in Item 8.

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 New York City’s growing economy. The company is an industry leading owner and operator of contracted, large-scale solar generation in the United States.customers. Con Edison is a responsible neighbor, helping the communities it serves become more sustainable.


CECONY
Electric
CECONY provides electric service to approximately 3.43.7 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 19,41015,444 MMlb of steam annually to approximately 1,6001,530 customers in parts of Manhattan.




14
CON EDISON ANNUAL REPORT 2017132023






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 New York and northern New Jersey, an approximately 1,300 square mile service area.


Gas
O&R delivers gas to over 0.10.2 million customers in southeastern New York.


Clean Energy Businesses
Con Edison Clean Energy Businesses, Inc. has three wholly-owned subsidiaries: Consolidated Edison Development, Inc. (Con Edison Development), Consolidated Edison Energy, Inc. (Con Edison Energy) and Consolidated Edison Solutions, Inc. (Con Edison Solutions). Con Edison Clean Energy Businesses, Inc., together with these subsidiaries, are referred to in this report as the Clean Energy Businesses. The Clean Energy Businesses develop, own and operate renewable and energy infrastructure projects and provide energy-related products and services to wholesale and retail customers.

Con Edison Transmission
Con Edison Transmission Inc. investsowns a 45.7 percent interest in New York Transco LLC (New York Transco), a New York limited liability company that was formed in November 2014 by affiliates of the four investor-owned electric utilities in New York, including Con Edison Transmission, to develop and gasown new electric transmission projects through its wholly-owned subsidiaries, Consolidated Edison Transmission, LLC (CET Electric) andfor the New York bulk electric system. Con Edison Gas Pipeline and Storage, LLC (CET Gas). CET Electric ownsTransmission’s ownership interest in New York Transco is comprised of: (1) a 45.7 percent interest in New York Transco LLC, which owns and is proposing to build additionalTransco's Transmission Owner Transmission Solutions, a group of three electric power bulk transmission assets in New York. CET Gas owns, through subsidiaries,projects, (2) a 5045.7 percent interest in Stagecoach Gas Services, LLC,New York Transco’s New York Energy Solution, an electric transmission project built to relieve transmission congestion between upstate and downstate New York, and a joint venture that41.7 percent interest in New York Transco’s share of Propel NY Energy, a proposed electric transmission project expected to deliver offshore wind electricity and increase high voltage transmission connections between Long Island and the rest of New York State.

Con Edison Transmission also owns operates and will further develop an existing gas pipeline and storage business located in northern Pennsylvania and southern New York. Also, CET Gas and CECONY owna 71.2 percent and 28.8 percent interests, respectively,interest in Honeoye Storage Corporation which operates(Honeoye), a gas storage facility in upstate New York.York, with the remaining 28.8 percent held by CECONY. In addition, CET GasCon Edison Transmission owns a 12.57.9 percent interest (that is expected to be reduced to approximately 7.0 percent based on Con Edison Transmission’s previous capping of its cash contributions to the joint venture) in Mountain Valley Pipeline LLC, a joint venture developing a proposed 300-mile gas transmission project in West Virginia and Virginia (Mountain Valley Pipeline). See “Con Edison Transmission,” below. Con Edison Transmission, Inc., together with CET Electric and CET Gas, are referred to in this report as Con Edison Transmission.Virginia.


Utility Regulation
State Utility Regulation
Regulators
The Utilities are subject to regulation by the NYSPSC, whichthat 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 New York. 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.securities and transactions between the Utilities and Con Edison and its other subsidiaries. See “Capital Resources,” below.below and Note U to the financial statements in Item 8. The NYSPSC exercises jurisdiction over the siting of the Utilities’ electric transmission lines in New York State (see “Con Edison Transmission,” below) and approves mergers or other business combinations involving New York utilities.
In addition, under the New York Public Service Law, the NYSPSC has the authority to (i) impose penalties on New York utilities, which could be substantial,material, for violating state utility laws and regulations and its orders. See “Other Regulatory Matters” in Note B to the financial statements in Item 8. O&R’s New Jersey subsidiary, RECO, is subject to similar regulation by the New Jersey Board of Public Utilities (NJBPU). The NYSPSC, together with the NJBPU, are referred to herein as state utility regulators.
In March 2013, following the issuance of recommendations by a commission established by the Governor of New York and submission by the Governor of a bill to the State legislature, the New York Public Service Law was amended to, among other things, authorize the NYSPSC to (i) levy expanded penalties against combination gas and electric utilities;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” in Note B to the financial statements in Item 8. O&R’s New Jersey 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.



14CON EDISON ANNUAL REPORT 2017202315





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 2017, 652023, 57 percent of the electricity and 3331 percent of the gas CECONY delivered to its customers, and 5847 percent of the electricity and 4022 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 New York State is now provided by one of fourfive 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.


Reforming the Energy Vision
In April 2014, the NYSPSC instituted its REV proceeding, the goals of which are to improve electric system efficiency and reliability, encourage renewable energy resources, support distributed energy resources (DER) and empower customer choice. In this proceeding, the NYSPSC is addressing the establishment of a distributed system platform to manage and coordinate DER, and provide customers with market data and tools to manage their energy use. The NYSPSC also is addressing how its regulatory practices should be modified to incent utility practices to promote REV objectives.
In February 2015, the NYSPSC issued an order in its REV proceeding in which, among other things, the NYSPSC:
ordered CECONY, O&R and the other electric utilities to file distributed system implementation plans (DSIPs) pursuant to which the utilities, under the NYSPSC’s authority and supervision, would serve as distributed system platforms to optimize the use of DER;
indicated that the utilities will be allowed to own DER only under limited circumstances, and that utility affiliate ownership of DER within the utility’s service territory will require market power protections;
ordered the utilities to file energy efficiency plans (see “Environmental Matters – Climate Change," below);
instituted a separate proceeding to consider large-scale renewable generation;
required the utilities to file demonstration projects for approval by NYSPSC staff; and
indicated that the design and implementation of the reformed energy system will occur over a period of years.

In June 2015, the New York State Energy Research and Development Authority (NYSERDA) submitted a report in the large-scale renewable generation proceeding. The report included program design principles and strategies. The NYSPSC requested comments on, among other things: customer funding mechanisms; utility-backed power purchase agreements; financing options; and utility-owned generation. In December 2015, the Governor of New York directed the NYSPSC to establish a clean energy standard to mandate achievement by 2030 of the State Energy Plan’s goals of 50 percent of the State’s electricity being provided from renewable resources and reducing carbon emissions by 40 percent (see “Environmental Matters - Climate Change,” below) and to support the continued operation of upstate nuclear plants. In August 2016, the NYSPSC issued an order adopting a clean energy standard that includes renewable energy credit (REC) and zero-emissions credit (ZEC) requirements. Beginning in 2017, load serving entities (LSEs), including CECONY and O&R for their full-service customers, are required to obtain RECs and ZECs in amounts determined by the NYSPSC. LSEs may satisfy their REC obligation by either purchasing RECs acquired through central procurement by NYSERDA, by self-supply through direct purchase of tradable RECs, or by making alternative compliance payments. LSEs will purchase ZECs from NYSERDA at prices determined by the NYSPSC. The order establishes an annual NYSPSC staff review and triennial NYSPSC review of the clean energy standard. Citing the risks that utility-backed power purchase agreements could impose on customers and utilities, the August 2016 order rejected requiring utilities to sign such agreements. The August 2016 order also did not authorize utility-owned renewable generation, stating a concern that allowing utilities to own renewable generation could result in reduced competition and higher costs. In January 2018, the Governor of New York unveiled a clean energy jobs and climate agenda that calls for procurement of at least 800 MWs of offshore wind power between two solicitations to be issued in 2018 and 2019, which are to be the first in a set schedule to meet a target of 2.4 gigawatts of offshore wind by 2030. The agenda also includes, among

CON EDISON ANNUAL REPORT 201715


other things, an initiative to deploy 1,500 MWs of energy storage by 2025. Also, in January 2018, NYSERDA issued a master plan for achievement of New York’s offshore wind energy objectives. NYSERDA indicated that it expects offshore wind funding for a first phase of procurements would be provided by a compliance obligation placed on LSEs through an administrative structure similar to the ZEC program. NYSERDA also filed with the NYSPSC an options paper in which it addressed potential procurement options, including utility-owned generation, utility-backed power purchase agreements and contracts with NYSERDA.

In July 2015, the NYSPSC staff issued a white paper on ratemaking and utility business models in the REV proceeding. The NYSPSC staff indicated that the proposals included in the white paper reflect the following foundational principles: align earning opportunities with customer value; maintain flexibility; provide accurate and appropriate value signals; maintain a sound electric industry; shift balance of regulatory incentives to market incentives; and achieve public policy objectives. In May 2016, the NYSPSC issued an order adopting a ratemaking and utility revenue framework. The order indicated that utilities will have four ways of achieving earnings: traditional cost-of-service earnings; earnings tied to achievement of alternatives that reduce utility capital spending and provide definitive consumer benefit; earnings from market-facing platform activities; and earnings from transitional outcome-based performance measures. The order also indicated, among other things, that existing measures for negative revenue adjustments for utility failure to meet basic service standards should generally be retained and net utility plant reconciliations should be modified to encourage cost-effective DER as an alternative to utility capital investment. The order directed each utility to file a system efficiency proposal; an interconnection survey process and proposed earnings adjustment mechanism; a progress report on aggregated data reporting automation; an aggregated data privacy policy statement; revisions to standby service tariffs and cost allocation matrix; one or more smart home rate demonstration proposals; and revisions to voluntary time of use rates and promotion and education tools.

In December 2015, the NYSPSC authorized a cost recovery surcharge mechanism for REV demonstration projects. Five CECONY and one O&R demonstration projects have been approved by the NYSPSC staff. The demonstration projects are expected to inform decisions with respect to developing distributed system platform functionalities, measuring customer response to programs and prices associated with REV markets.

In January 2016, the NYSPSC established a benefit cost analysis framework that will apply to, among other things, utility proposals to make investments that could instead be met through DER alternatives that meet all applicable reliability and safety requirements. The framework’s primary measure is a societal cost test which, in addition to addressing avoided utility costs, is to quantitatively address certain environmental externalities and, where appropriate, qualitatively address other externalities. The NYSPSC directed the utilities to develop and file benefit cost analysis handbooks to guide DER providers in structuring their projects and proposals.

In March 2016, the NYSPSC issued an order approving CECONY’s advanced metering infrastructure (AMI) plan for its electric and gas delivery businesses, subject to a cap on capital expenditures of $1,285 million. AMI components include smart meters, a communication network, information technology systems and business applications. The plan provides for full deployment of AMI to CECONY’s customers to be implemented over a six-year period. During 2016, CECONY, at the NYSPSC’s direction, submitted a customer engagement plan, an update to the company’s benefit cost analysis and metrics that the NYSPSC can use to monitor the success of the project. O&R’s electric and gas rate plans authorize aggregate capital expenditures of approximately $24 million to begin AMI implementation for the company’s customers. In February 2017, O&R submitted to the NYSPSC a request to expend an additional approximately $74 million to expand the scope of the company’s AMI implementation to all of its New York customers. In November 2017, the NYSPSC authorized O&R to implement its expanded AMI smart meter implementation plan.

In June 2016, CECONY and O&R each filed initial DSIPs and benefit-cost handbooks with the NYSPSC, pursuant to which the companies provided additional system and planning information for third-party developers to facilitate the integration of DER in the distributed system platform. In November 2016, CECONY and O&R, with the other state electric utilities, filed a joint supplemental DSIP with the NYSPSC, pursuant to which the companies expanded on the initial DSIPs to address the tools, processes and protocols to be developed jointly to operate the grid to manage DER and support a retail market. The Utilities plan to develop their distribution system platforms as proposed and in conformance with the guidance of the NYSPSC.

In October 2016, CECONY filed a petition with the NYSPSC for approval of a Shared Solar Pilot Program (SSPP) to install and own solar photovoltaic systems on company facilities. CECONY proposed using the community distributed generation model to allocate solar bill credits, net of project cost, to a subset of customers who participate in the company's electric low income program. In August 2017, the NYSPSC approved a $9 million

16CON EDISON ANNUAL REPORT 2017



budget for the SSPP. In November 2017, CECONY filed an implementation plan for the SSPP under which it expects operational solar in 2019, with bill credits for approximately 1,000 low income customers.

In March 2017, the NYSPSC issued an order that changes compensation for DER and begins to phase out net energy metering. In New York, net energy metering compensates kilowatt-hours exported to the electric distribution system at the full service rate (that is production plus delivery plus taxes and fees). To provide a gradual transition, the NYSPSC allowed all existing resources to keep their current rate treatment and will delay making significant changes to policies affecting new residential and small commercial rooftop solar until 2020. Larger installations, including new commercial and industrial projects and new community solar projects, will be paid for the value of their exports to the electricity distribution system. The new policy establishes a 2 percent limit on bill increases, reducing the shifting of avoided distribution costs to non-participating residential customers that would have occurred under net energy metering.

In September 2017, CECONY submitted a petition to the NYSPSC for authority to develop smart solutions for gas customers, seeking to apply REV concepts, such as expanding energy efficiency and demand response programs, and to develop a program to encourage ground and air source heating alternatives. The company also identified a gas pipeline need as a result of strong growth in gas consumption, driven by the City of New York’s clean heat program, and further stated that it would issue a request for proposals for non-pipeline solutions. The request for proposals was issued in December 2017. At its November 2017 session, the NYSPSC encouraged utilities to consider non-pipeline solutions for gas needs. 

The REV proceeding and the various related proceedings are continuing proceedings. The Companies are not able to predict the outcome of the proceedings or their impact.

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 New York, 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. TheIn New York 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

CON EDISON ANNUAL REPORT 201717


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.

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CON EDISON ANNUAL REPORT 2023


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 tariffand O&R’s tariffs for electric and gas service also providesprovide for reimbursementcompensation to electric customers for spoilage losses resulting from service interruptions in certain circumstances. In general, the company is obligated to reimburse affected residential and commercialsmall 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 approximately $500$540; and $10,000, respectively, and reimbursereimbursement of affected residential customers for prescription medicine spoilage losses without limitation on amount per claim. The company’s maximum aggregate liability forlimitation. Any such reimbursement for an incident is $15 million. The company iscosts incurred by utilities are not requiredrecoverable from customers. Utilities may petition the NYSPSC to provide reimbursementrequest a waiver of the requirement that it compensate customers after widespread prolonged outages. CECONY’s electric tariff requires it to electricalso compensate customers for certain other service outages attributableresulting from malfunctions in the company’s lines and cable of 33 kV or less or associated equipment, including, for residential customers, up to generation or transmission system facilities or events beyond its control, such as storms, provided the company makes reasonable efforts$580 for food spoilage and actual losses for prescription medicine losses, and for all other customers, up to restore service as soon as practicable.
New York electric utilities are required to provide credits to customers who are without electric service$11,460 for more than three days. The credit to a customer would equal the portionlosses of the monthly customer charge attributable to the period the customer was without service. If an extraordinary event occurs, the NYSPSC may direct New York gas utilities to implement the same policies.

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 event.storm. The scorecard which could also be applied by the NYSPSC for other outages or actions, was developed to work with the penalty and emergency response plan provisions of the New York Public Service Law.actions. The scorecard includes performance metrics in categories for preparation, operations response, and communications.
Each New York electric utility is required to submit to the NYSPSC annually aan 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 reasonably,during an event, the NYSPSC may impose penalties or deny recovery of any part of the service restoration costs caused by such failure. In March 2017,April 2023, the NYSPSC approved CECONY’s and O&R's emergency response plans submitted by. In December 2023, CECONY and O&R subject to certain modifications. In December 2017, CECONY and O&Reach submitted updated plans.emergency response plans for 2024.



Generic Proceedings
The NYSPSC from time to time conducts “generic” proceedings to consider issues relating to all electric and gas utilities operating in New York State. Pending proceedingsProceedings include the REV proceedingclean energy and related implementation proceedings, discussed above,such as the proceeding to study the potential effects of the federal Tax CutsClimate Leadership and JobsCommunity Protection Act of 2017, as enacted on December 22, 2017 (TCJA), discussed in "Other Regulatory Matters" in Note B to the financial statements in Item 8,proceeding, and proceedings relating to energy affordability, data access;access, retail access; utility staffing levels;access, gas planning, energy efficiency and renewable energy programs; low income customersprograms, and consumer protections.negative revenue adjustments for billing delays related to community solar generation projects. The Utilities typically are typically active participants in such proceedings.



18CON EDISON ANNUAL REPORT 2017



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 tocan impose substantial penalties, which could be substantial, including penalties for the violationviolations of reliability and cyber securitycybersecurity rules. Certain activities of the Utilities the Clean Energy Businesses 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 Electric and CET Gas investCon Edison Transmission invests are also subject to regulation by the FERC. See “Con Edison Transmission,” below.


CON EDISON ANNUAL REPORT 202317


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 New York State, including those of the Utilities, as an integrated system. It also administers wholesale markets for electricity in New York 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 New York 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. ItThe 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 companiesother load serving entities that supply customers on market terms. To address the possibility of a disruption due to the unavailability of gas, generating units located in New York City that are capable of using either gas or oil as fuel may be required to use oil as fuel for certain periods and new generating units located in New York City are required to have dual fuel capability. RECO, O&R’s New Jersey 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. In March 2023, the New York State legislature amended the New York State Public Service Law, directing the NYSPSC to develop rules to direct electric and gas utilities to, among other things, protect customer privacy, including customer consumption data, from unauthorized disclosure; (ii) develop and implement tools to monitor operational control networks to detect unauthorized network behavior; and (iii) mandate that utilities’ emergency response plans include cyberattack response plans. 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 and Item 1C: Cybersecurity.

Competition
DistributedThe subset of distributed energy resources (DER) that produce electricity is collectively called distributed generation such as(DG). DG includes solar energy production facilities, fuel cells, and micro-turbines, provideand provides an alternative sourcessource of energyelectricity 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 which typicallywith DG remain connected to the utility’s delivery system and do not pay a different rate. In addition, gasGas delivery customers have electricity, oil and propane as an alternative,alternatives, and
steam customers may have electricity, oil and natural gas as alternative sources offor heating and cooling for their buildings. Micro-grids and community-based micro-grids enable distributed generationDG to serve multiple locations and multiple customers. Other distributed energy resources, such as energy storage, demandDemand reduction and energy efficiency programs,investments provide alternativesways for energy consumers within the Utilities’ delivery customersservice areas to managelower 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. 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 distributed generationDG projects connected to the Utilities’ distribution systems at the end of the last fourfive years:

TechnologyCECONYO&R
Total MW, except project number2014
2015
2016
2017
2014
2015
2016
2017
Internal-combustion engines101
103
104
108
1
1
2
2
Photovoltaic solar58
95
135
178
28
46
63
75
Gas turbines40
40
40
48
20
20
20
20
Micro turbines9
10
10
14
1
1
1
1
Fuel cells8
8
9
12
—
—
—
—
Steam turbines3
3
4
6
—
—
—
—
Landfill—
—
—
—
2
2
2
2
Total distribution-level distributed generation219
259
302
366
52
70
88
100
Number of distributed generation projects4,200
7,451
12,928
18,090
1,877
3,718
5,409
6,537



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CON EDISON ANNUAL REPORT 2017192023




The Clean Energy Businesses participate in competitive renewable and energy infrastructure projects and energy products and services businesses that are subject to different risks than those found in the businesses of the Utilities. Con Edison Transmission invests in electric and gas transmission and gas storage projects, the current and prospective customers of which may have competitive alternatives.

TechnologyCECONYO&R
Total MW, except project number2019202020212022202320192020202120222023
Internal-combustion engines114 129 155 157 160 3 3 3 3 3 
Photovoltaic solar276 323 398 487 579 121 154 183 213 243 
Battery energy storage8 13 18 25 47 1 6 11 25 36 
Gas turbines48 53 61 61 61 20 20 20 20 20 
Micro turbines18 21 23 24 24 1 1 1 1 1 
Fuel cells20 30 30 45 46 — — — — — 
Steam turbines6 6 6 6 6 — — — — — 
Landfill— — — — — 2 2 2 2 2 
Total distribution-level DG490 575 691 805 923 148 186 220 264 305 
Number of DG projects30,539 36,194 43,702 53,498 65,758 8,687 9,643 10,913 12,448 14,201 
The Utilities do not consider it reasonably likely that another company would be authorized to provide utility delivery service of electricity, natural 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.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. 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
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 NP 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 $17,996$23,238 million and $17,234$22,130 million at December 31, 20172023 and 2016,2022, respectively. For its transmission facilities, the costs for utility plant, net of accumulated depreciation, were $2,990$4,333 million and $2,963$3,916 million at December 31, 20172023 and 2016,2022, respectively, and for its portion of the steam-electric generation facilities, the costs for utility plant, net of accumulated depreciation, were $544$580 million and $479$534 million, at December 31, 20172023 and 2016,2022, respectively. See "CECONY – Steam Operations – Steam Facilities," below.

Distribution Facilities
CECONY owns 6263 area distribution substations and various distribution facilities located throughout New York City and Westchester County. At December 31, 2017,2023, the company’s distribution system had a transformer capacity of 31,76732,636 MVA, with 37,02037,633 miles of overhead distribution lines and 97,56498,789 miles of underground distribution lines. The underground distribution lines represent the single longest underground electric delivery system in the United States.


Transmission Facilities
The company’sCECONY’s transmission facilities are located in New York City and Westchester, Orange, Rockland, Putnam and Dutchess counties in New York State. AtOn December 31, 2017, CECONY2023, the company owned or jointly owned 555490 miles of overhead circuits operating at 138, 230, 345 and 500 kV and 749760 miles of underground circuits operating at 69, 138 and 345 kV. The company’s 3940 transmission substations and 6263 area stations are supplied by circuits operated at 69 kV and above. For information about transmission projects to address, among other things, reliability concerns associated with the scheduled closure of the Indian Point Energy Center (which is owned by Entergy Corporation subsidiaries) see “CECONY – Electric Operations – Electric Supply” and “Con Edison Transmission,” below. 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,Eversource Energy, Long Island Power Authority, NYPA, New York Transco and Public Service Electric and Gas Company.


CON EDISON ANNUAL REPORT 202319


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.business and also co-produce electricity. The facilities have an electricala combined electric nameplate capacity of 732approximately 694 MW. The company expects to have sufficient amounts of gas and fuel oil available in 20182024 for use in these facilities.


Electric Sales and Deliveries
CECONY delivers electricity to its full-service customers who purchase electricity from the company. The companyUnder the company's retail choice program, CECONY also delivers electricity to its customers who choose to purchase electricity from other suppliers (retail choice program).load serving entities. In addition, the company delivers electricity to state and municipal customers of the NYPA.

20CON EDISON ANNUAL REPORT 2017



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 delivery 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:
  Year Ended December 31,
  20192020202120222023
Electric Energy Delivered (millions of kWh)
CECONY full service customers20,57920,54420,71022,54722,657
Delivery service for retail choice customers24,75422,00021,54921,11620,315
Delivery service to NYPA customers and others9,8219,0279,0699,3579,284
Total Deliveries in Franchise Area55,15451,57151,32853,02052,256
Electric Energy Delivered ($ in millions)
CECONY full service customers$4,535$4,804$5,299$6,192$6,305
Delivery service for retail choice customers2,4702,3912,6132,5262,394
Delivery service to NYPA customers and others644638683715758
Other operating revenues413270211318621
Total Deliveries in Franchise Area$8,062$8,103$8,806$9,751$10,078
Average Revenue per kWh Sold (Cents)
Residential$25.3$26.1$27.3$28.8$30.1
Commercial and industrial$18.6$20.2$23.5$26.0$25.4
   Year Ended December 31,
   2013 2014 2015 2016 2017
Electric Energy Delivered (millions of kWh)
          
CECONY full service customers 20,118 19,757 20,206 19,886 19,227
Delivery service for retail choice customers 26,574 26,221 26,662 26,813 26,136
Delivery service to NYPA customers and others 10,226 10,325 10,147 10,046 9,955
Total Deliveries in Franchise Area 56,918 56,303 57,015 56,745
55,318
Electric Energy Delivered ($ in millions)
          
CECONY full service customers $4,799 $5,023 $4,757 $4,404 $4,348
Delivery service for retail choice customers 2,683 2,646 2,714 2,768 2,712
Delivery service to NYPA customers and others 602 625 600 610 623
Other operating revenues 47 143 101 324 289
Total Deliveries in Franchise Area $8,131 $8,437 $8,172 $8,106
$7,972
Average Revenue per kWh Sold (Cents)
          
Residential 27.0 28.9 26.3 24.9 25.3
Commercial and Industrial 20.6 22.1 20.6 19.1 19.7


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 NP to the financial statements in Item 8.


Electric Peak Demand
The electric peak demand in CECONY’s service area typically occurs during the summer air conditioning season.The weather during the summer of 2017 was cooler than design conditions.season. CECONY’s 20172023 service area actual hourly peak demand (June-August) was 12,32111,565 MW, which occurred on July 20, 2017.27, 2023. “Design weather”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 conditionsDesign Weather Conditions do not include these programs’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,Design Weather Conditions, the 20182024 service area hourly peak demand will be 13,300 will be 12,800 MW. The As of January 2024, the company forecasts an average annual growthincrease in hourly electric peak demand in its service area at design conditionsDesign Weather Conditions over the next five years to be approximately 0.10.7 percent per year.year, including the effect of certain electric energy efficiency programs, the anticipated phase-out of natural gas in certain new construction buildings in CECONY's service territory, and the anticipated increase in electric vehicles in CECONY's service territory. The five-year forecast in peak demand is used by the company for electric supply and capital planning purposes.


Electric Supply
Most of the electricity sold by CECONY to its full-service customers in 20172023 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 2018.2024. The company plans to meet its continuing obligation to supply electricity

20
CON EDISON ANNUAL REPORT 2023


to its full-service customers through a combination of electricity purchased under contracts,contract, purchased through the NYISO’s wholesale electricity market, or generated from its electricity generating facilities. For information about the company’s contracts for approximately 803 MW of electric generating capacity, see Notes I and OQ 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. As of December 31, 2017, theThe generating stations hadhave a combined electric nameplate capacity of approximately 732 MW, based on 2017 summer test ratings.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 purchasedcosts of purchasing power costs,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

CON EDISON ANNUAL REPORT 201721


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.
Electric Reliability Needs
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. NYISO reliability planning process.

In addition,2019, the New York State Department of Environmental Conservation issued regulations (Peaker Rule) that may require the retirement or seasonal unavailability of fossil-fueled electric generating units owned by CECONY and others in New York City. The Peaker Rule limits nitrous oxides emissions during the ozone season from May through September and affects older peaking units that are generally located downstate and needed during periods of high electric demand or for local reliability purposes. Compliance with the Peaker Rule would impact approximately 1,700 MW (nameplate capacity) of generating units in CECONY's service territory (including 70 MW owned by CECONY), of which approximately 989 MW (including 70 MW owned by CECONY) have since been retired or limited operation. An additional 709 MW (in nameplate capacity) of peaker plants were expected to become unavailable beginning May 1, 2025. In July 2023, the NYISO has adopted reliability rules that include obligations on transmission owners (such as CECONY) to construct facilities that may be needed for system reliability if the market does not solve afound an electric reliability need identifiedbeginning in the summer of 2025 in CECONY’s New York City territory primarily driven by forecasted increases in peak demand and the unavailability of units impacted by the NYISO. See “New York Independent System Operator,” above.Peaker Rule. In November 2023, after soliciting and evaluating both regulated and market-based solutions, the NYISO determined that there were no viable and sufficient solutions submitted that meet the reliability need in 2025. As a July 1998 order,result, 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,NYISO stated that it will no longer havetemporarily retain 672 MW of the obligationremaining units impacted by the Peaker Rule until May 2027 to ensure the continued reliability of electric service in New York City.

In January 2021, CECONY updated its Local Transmission Plan to address identified reliability needs on its local system resulting from the Peaker Rule 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 new generating facilities, regardlessthe RCC projects. In May 2023, the first of the market pricethree RCC projects was completed and placed in service; the remaining two are expected to be completed in 2025.

In April 2023, the NYSPSC approved CECONY’s December 2022 petition seeking cost recovery approval for a proposed clean energy hub in Brooklyn, New York (Brooklyn Clean Energy Hub) at an estimated cost of capacity.$810 million and an estimated in-service date of December 2027, that is in addition to the capital expenditures approved in CECONY's 2023 electric rate plan. The Brooklyn Clean Energy Hub primarily addresses an identified reliability need in 2028 due to a forecasted increase in electric demand. The Brooklyn Clean Energy Hub also provides the flexibility for offshore wind resources to interconnect to it during construction and after it commences operation. Construction began in September 2023 and is expected to be completed by 2028.

In November 2012,January 2024, the NYSPSC directedapproved CECONY's August 2023 petition requesting authorization and cost recovery to construct two new substations in Jamaica, Queens (the Reliable Clean City - Idlewild Project) that is in addition to the capital expenditures approved in CECONY's 2023 electric rate plan. The project is expected to be completed by May 2028 to meet anticipated reliability needs and to support New York State’s goals set forth in the Climate Leadership and Community Protection Act (CLCPA). CECONY to work with NYPA to develop a contingencyestimates that construction will cost $1,200 million.

Capital expenditures approved in CECONY’s 2023 electric rate plan to address identified reliability concerns associated with the potential closure of the nuclear power plant at the Indian Point Energy Center (which is owned by Entergy Corporation subsidiaries). In October 2013, the NYSPSC approved three transmission projects and several energy efficiency, demand reduction and combined heat and power programs to address concerns associated with the potential closure. The transmission projects were placed into serviceneeds in May 2016. See “Con Edison Transmission,” below. In February 2014, CECONY submitted to the NYSPSC the implementation plan for the energy efficiency, demand reduction and combined heat and power programs. In January 2017, New York State officials announced that, under an agreement reached with Entergy, oneCity include CECONY’s projects to: transfer electric customers from its Brownsville substation to its Glendale substation (estimated completion in 2026 and estimated cost of the two nuclear reactors at Indian Point is scheduled to shut down by April 2020, while the other is scheduled to be closed$115 million); build a year later. On November 13, 2017, the NYISO indicated that Entergy completed its Generator Deactivation Notice for proposed retirements of the two nuclear reactors. On December 13, 2017, the NYISO completed its Deactivation Assessment of Indian Point pursuant to the requirements of its Open Access Transmission Tariff. It concluded that over its ten-year planning period, through 2027, there is no anticipated reliability need if the following three expected units finalize construction and enter service: Bayonne Energy Center II Uprate (Zone J, 120 MW); CPV Valley Energy Center (Zone G, 678 MW); and Cricket Valley Energy Center (Zone G, 1,020 MW).  With these results, the NYISO states that Indian Point has satisfied the applicable requirements with respect to the Generator Deactivation Processes and may retire the units on or after the requested deactivation dates.



transmission feeder between
22CON EDISON ANNUAL REPORT 2017202321





Vernon and Newtown (estimated completion in 2026 and estimated cost of $125.4 million); and build the Gateway Park area substation (estimated completion in 2028 and estimated cost of $1,100 million).



Gas Operations
Gas Facilities
CECONY’s capitalized costs for utility plant, net of accumulated depreciation, for gas facilities, which are primarily distribution facilities, were $6,403$11,226 million and $5,749$10,567 million at December 31, 20172023 and 2016,2022, respectively.


Natural gas is delivered by pipelineinterstate pipelines to CECONY at various points in or near its service territory and is distributed to customers by the company through an estimated 4,3954,363 miles of mains and 371,236380,870 service lines. The company owns a natural gas liquefaction facility and storage tank at its Astoria property in Queens, New York. The plant can store 1,062 MDt of which a maximum of about 240 MDt can be withdrawn per day. The company has aboutapproximately 1,226 MDt of additional natural gas storage capacity available to it at a field in upstate New York, owned and operated by Honeoye Storage Corporation, a corporationcorporation 71.2 percent owned by CET GasCon Edison Transmission and 28.8 percent owned by CECONY.


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:
Year Ended December 31,
20192020202120222023
Gas Delivered (MDt)
Firm sales
Full service87,63778,51581,63785,24677,525
Firm transportation81,71076,61476,76575,17272,740
Total Firm Sales169,347155,129158,402160,418150,265
Interruptible sales (a)9,9038,4825,9276,0987,892
Total Gas Delivered to CECONY Customers179,250163,611164,329166,516158,157
Transportation of customer-owned gas
NYPA39,64341,57743,09445,08553,541
Other (mainly generating plants and interruptible transportation)72,71270,53767,87172,44880,378
Off-system sales1212121212
Total Sales291,617275,737275,306284,061292,088
Gas Delivered ($ in millions)
Firm sales
Full service$1,327$1,229$1,473$1,850$1,791
Firm transportation593649704798853
Total Firm Sales1,9201,8782,1772,6482,644
Interruptible sales4227295149
Total Gas Delivered to CECONY Customers1,9621,9052,2062,6992,693
Transportation of customer-owned gas
NYPA22222
Other (mainly generating plants and interruptible transportation)5455596458
Other operating revenues (mainly regulatory amortizations)1147411115976
Total Sales$2,132$2,036$2,378$2,924$2,829
Average Revenue per Dt Sold
Residential$17.33$18.59$20.71$24.67$26.63
General$11.55$10.77$13.67$17.17$18.03
(a)Includes 5,484, 3,510, 1,920, 2,015 and 2,574 MDt for 2019, 2020, 2021, 2022 and 2023, respectively, which are also reflected in delivery service for firm retail choice customers and other.
 Year Ended December 31,
 20132014
20152016
2017
Gas Delivered (MDt)
     
Firm Sales     
Full service67,00775,63077,19775,89283,005
Firm transportation of customer-owned gas61,13968,73172,86468,44271,353
Total Firm Sales128,146144,361150,061144,334154,358
Interruptible Sales (a)10,90010,4986,3328,9577,553
Total Gas Delivered to CECONY Customers139,046154,859156,393153,291161,911
Transportation of customer-owned gas     
NYPA48,68247,54844,03843,10137,033
Other (mainly generating plants and interruptible transportation)87,379105,012104,857109,00083,117
Off-System Sales4,63815389—
55
Total Sales279,745307,434305,677305,392282,116
Gas Delivered ($ in millions)
     
Firm Sales     
Full service$1,059$1,141$956$933$1,136
Firm transportation of customer-owned gas414453458426524
Total Firm Sales1,4731,5941,4141,3591,660
Interruptible Sales6991463435
Total Gas Delivered to CECONY Customers1,5421,6851,4601,3931,695
Transportation of customer-owned gas   
NYPA22222
Other (mainly generating plants and interruptible transportation)7170545756
Off-System Sales18—
1—
—
Other operating revenues (mainly regulatory amortizations)(17)(36)1156148
Total Sales$1,616$1,721$1,528$1,508$1,901
Average Revenue per Dt Sold   
Residential$18.52$16.76$13.91$13.96$15.35
General$12.05$12.38$9.73$9.47$10.86
(a)

22
Includes 5,362, 6,057, 1,229, 4,708 and 3,816 MDt for 2013, 2014, 2015, 2016 and 2017, respectively, which are also reflected in firm transportation and other.CON EDISON ANNUAL REPORT 2023


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 NP to the financial statements in Item 8.



CON EDISON ANNUAL REPORT 201723


Gas Peak Demand
The gas actual peak day demand for firm salesgas customers in CECONY’s service area occurs during the winter heating season.The peak day demandseason and during the winter 2017/2018of 2023/2024 (through January 31, 2018)2024) occurred on January 6, 201820, 2024 when the firm gas customers' demand reached 1,410approximately 1,188 MDt. “Design weather”“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,Design Weather Conditions, the2018/2019 2024/2025 service area peak day demand for firm gas customers will be1,565 1,698 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. TheAs of January 2024, the company forecasts an average annual growthdecrease of the gas peak day demand for firm gas customers over the next five years at design conditions to beof approximately 1.20.8 percent in its service area. The company is seeking to expandarea, including the effect of certain gas energy efficiency and demand response programs, develop programs to encourage alternatives to gasthe electrification of space heating and has issued a requestthe anticipated phase-out of natural gas in certain new construction buildings in CECONY's service territory. The five-year forecast in peak demand is used by the company for proposals for non-pipeline solutions to an identified gas pipeline need. See “Utility Regulation – Reforming the Energy Vision," above.supply and capital planning purposes.



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 SU to the financial statements in Item 8.
Charges fromfrom 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 $306$371.7 million in 2017,2023, including $268$326.8 million for CECONY. See “Contractual Obligations,” below. At December 31, 2017,2023, the contracts were for various terms extending to 20202027 for supply and 20382044 for transportation and storage. During 2017,2023, CECONY entered into fourone new transportation and storage contracts.contract. In addition, the Utilities purchase gas on the spot market and contract for interruptible gas transportation. See “Contractual Obligations,” below and “Recoverable Energy Costs” in Note A, Note PQ and Note SU to the financial statements in Item 8.


In July 2020, CECONY filed a gas planning analysis with the NYSPSC that 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.

In December 2023, CECONY ended a temporary moratorium on new applications for firm gas service that had been implemented in March 2019 due to interstate pipeline gas transportation constraints that affected most of Westchester County. CECONY lifted the moratorium due to increased interstate pipeline capacity upon completion of Tennessee Gas Pipeline’s East 300 Upgrade Project.

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 $1,798$1,990 million and $1,882$1,962 million at December 31, 20172023 and 2016,2022, 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 104106 miles of transmission, distribution and service piping.

CON EDISON ANNUAL REPORT 202323



Steam Sales and Deliveries
CECONY’s steam sales and deliveries for the last five years were:
 Year Ended December 31,
 20132014201520162017
Steam Sold (MMlb)
     
General547594538465490
Apartment house6,1816,5746,2725,7925,754
Annual power15,19515,84815,10913,72213,166
Total Steam Delivered to CECONY Customers21,92323,01621,91919,97919,410
Steam Sold ($ in millions)
     
General$31$30$29$23$26
Apartment house187180176148158
Annual power491469453378392
Other operating revenues(26)(51)(29)219
Total Steam Delivered to CECONY Customers$683$628$629$551$595
Average Revenue per MMlb Sold$32.34$29.50$30.02$27.48$29.68

24CON EDISON ANNUAL REPORT 2017



Year Ended December 31,
20192020202120222023
Steam Sold (MMlb)
General536445504513428
Apartment house5,9195,1315,0135,1224,657
Annual power13,34010,97711,36711,79210,359
Total Steam Delivered to CECONY Customers19,79516,55316,88417,42715,444
Steam Sold ($ in millions)
General$27$23$25$2725
Apartment house160136137155150
Annual power395321340391363
Other operating revenues4528302031
Total Steam Delivered to CECONY Customers$627$508$532$593$569
Average Revenue per Mlb Sold$29.40$29.00$29.73$32.88$34.84
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 NP to the financial statements in Item 8.


Steam Peak Demand and Capacity
Demand forThe steam actual hourly peak demand in CECONY’s service area peaksoccurs during the winter heating season. The one-hour peak demandseason and during the winter of 2017/2018(through2023/2024 (through January 31, 2018)2024) occurred on January 5, 201817, 2024 when the actual hourly demand reached7.9 approximately 6.7 MMlb per hour. “Design weather”“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 of2018/2019 2024/2025 hourly peak demand of its steam customers is about 9.0about 7.7 MMlb per hour under design conditions.Design Weather Conditions. The company forecasts an average annual decrease in steam hourly peak demand in its service area at design conditionsDesign Weather Conditions over the next five years to be approximately 0.5 percent.The slight decrease reflects continued lower commercial building occupancy levels in the aftermath of the COVID-19 pandemic and customer migration to other heating sources. The five-year forecast in peak demand is used by the company for steam supply and capital planning purposes.
OnDecember 31, 2017,2023, the steam system was capable of delivering approximately 11.6 11.4 MMlbof steam per hour, and CECONY estimates that the system will have the same capability in the 2018/20192024/2025 winter.


Steam Supply
35 percent of the steam produced by CECONY in 20172023 was supplied by the company’s steam-only generating assets; 4843 percent was produced by the company’s steam-electric generating assets, where steam and electricity are primarily cogenerated; and 17 percent22 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 $963$1,253 million and $916$1,215 million at December 31, 20172023 and 2016,2022, respectively. For its transmission facilities, the costs for utility plant, net of accumulated depreciation, were $220$319 million and $221$307 million at December 31, 20172023 and 2016,2022, respectively.
O&R and RECO own, in whole or in part, transmission and distribution facilities which include 532545 circuit miles of transmission lines, 15 transmission substations, 6263 distribution substations, 85,83590,051 in-service line transformers, 3,7433,788 pole miles of overhead distribution lines and 2,1382,314 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. The companyUnder the company's retail choice program, O&R also delivers electricity to its customers who purchase electricity from other suppliers through the company’s retail choice program.load serving entities.

24
CON EDISON ANNUAL REPORT 2023


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 New York electric revenues (which accounted for 76 percent of O&R’s electric revenues in 2017)2023) are subject to a revenue decoupling mechanism. As a result, O&R’s New York 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 salesdistribution revenues in New Jersey 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 New Jersey are not subject to a decoupling mechanism.conservation incentive program, and as a result, changes in such volumes do impact revenues. O&R’s electric sales and deliveries for the last five years were:

CON EDISON ANNUAL REPORT 201725


Year Ended December 31,Year Ended December 31,
201920192020202120222023
Electric Energy Delivered (millions of kWh)
Total deliveries to O&R full service customers
Total deliveries to O&R full service customers
Total deliveries to O&R full service customers2,6172,7122,7022,9732,988
Delivery service for retail choice customersDelivery service for retail choice customers2,8852,6222,8392,5802,397
Total Deliveries in Franchise AreaTotal Deliveries in Franchise Area5,5025,3345,5415,5535,385
Electric Energy Delivered ($ in millions)
Total deliveries to O&R full service customers
Total deliveries to O&R full service customers
Total deliveries to O&R full service customers$429$442$453$576$578
Delivery service for retail choice customersDelivery service for retail choice customers191186223198172
Other operating revenuesOther operating revenues1415(1)9
Total Deliveries in Franchise AreaTotal Deliveries in Franchise Area$634$629$681$773$759
Average Revenue Per kWh Sold (Cents)
Residential
Residential
Residential$18.20$17.80$19.00$21.50$21.90
Commercial and IndustrialCommercial and Industrial$13.90$14.20$13.00$15.60$15.30
Year Ended December 31,
20132014201520162017
Electric Energy Delivered (millions of kWh)
 
Total deliveries to O&R full service customers2,5552,4292,4992,5552,435
Delivery service for retail choice customers3,1663,2403,2373,1802,976
Total Deliveries In Franchise Area5,7215,6695,7365,7355,411
Electric Energy Delivered ($ in millions)
 
Total deliveries to O&R full service customers$427$455$441$426$433
Delivery service for retail choice customers192207213201
Other operating revenues9189(2)8
Total Deliveries In Franchise Area$628$680$663$637$642
Average Revenue Per kWh Sold (Cents)
 
Residential18.120.319.218.419.8
Commercial and Industrial14.816.815.414.315.0
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 NP to the financial statements in Item 8.


Electric Peak Demand
The electric peak demand in O&R’s service area typically occurs during the summer air conditioning season.The weather during the summer of 2017 was cooler than design conditions. O&R’s 20172023 service area actual hourly peak demand (June-August) was 1,4101,342 MW, which occurred on June 13, 2017. “Design weather”on July 28, 2023. “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 the NYISO can invokeNYISO-invoked demand reduction programs can only be called upon under specific circumstances, design conditionsDesign Weather Conditions do not include these programs’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,Design Weather Conditions, the2018 2024 service area peak demand will be 1,620 1,530 MW. TheAs of January 2024, the company forecasts an average annual growthincrease in hourly electric peak demand in its service area at design conditions over the next five years to be flat every year.approximately 2.0 percent, including the effect of certain electric energy efficiency programs distributed generation additions, the anticipated phase-out of natural gas in certain new construction buildings in New York State, and the anticipated increase in electric vehicles in O&R's service territory. The five-year forecast in peak demand is used by the company for electric supply and capital planning purposes.


Electric Supply
The electricity O&R sold to its full-service customers in 20172023 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 2018.2024. 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 OQ to the financial statements in Item 8.
In general, the Utilities recover their purchasedcosts of purchasing power costs,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.


CON EDISON ANNUAL REPORT 202325


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 $573$792 million and $536$756 million at December 31, 20172023 and 2016,2022, respectively. Natural gas 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 1,8761,896 miles of mains and 105,265107,425 service lines.



26CON EDISON ANNUAL REPORT 2017



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. O&R’s New York gas revenues (which have accounted for substantially all of O&R’s gas revenues) are subjectclause 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:
Year Ended December 31,
20192020202120222023
Gas Delivered (MDt)
Firm sales
Full service12,53711,87713,99815,35314,357
Firm transportation9,4598,2717,5846,3965,055
Total Firm Sales21,99620,14821,58221,74919,412
Interruptible sales3,6683,6333,8213,9113,301
Total Gas Delivered to O&R Customers25,66423,78125,40325,66022,713
Transportation of customer-owned gas
Sales for resale914658468673334
Sales to electric generating stations45926104
Off-system sales119817320
Total Sales26,58324,51725,97826,41623,071
 Year Ended December 31,
 2013
2014201520162017
Gas Delivered (MDt)
     
Firm Sales     
Full service8,8089,5299,3489,72310,480
Firm transportation12,06212,59211,75210,3819,873
Total Firm Sales20,87022,12121,10020,10420,353
Interruptible Sales4,1184,2164,2053,8533,771
Total Gas Delivered to O&R Customers24,98826,33725,30523,95724,124
Transportation of customer-owned gas     
Sales for resale885945906867896
Sales to electric generating stations197025189
Off-System Sales—
362166
Total Sales25,89227,35526,29824,85825,035
Year Ended December 31,
2013
20142015
2016
2017
Year Ended December 31,Year Ended December 31,
201920192020202120222023
Gas Delivered ($ in millions)
   
Firm Sales   
Firm sales
Firm sales
Firm sales
Full service
Full service
Full service$115$121$91$99$139$161$141$190$245$230
Firm transportation7775687074Firm transportation6362554538
Total Firm Sales192196159169213Total Firm Sales224203245290268
Interruptible Sales3237Interruptible Sales6
Total Gas Delivered to O&R Customers195198162172220Total Gas Delivered to O&R Customers230209251296274
Transportation of customer-owned gas   
Sales to electric generating stations—
1—
—
—
Sales to electric generating stations
Sales to electric generating stations— — — — —
Other operating revenues1013201212Other operating revenues292491623
Total Sales$205$212$182$184$232Total Sales$259$233$260$312$297
Average Revenue Per Dt Sold   
Residential$13.31$13.01$10.11$10.71$13.86
Residential
Residential$13.32$12.40$14.09$16.49$16.90
General$11.53$11.30$8.24$8.17$11.08General$10.68$9.51$11.24$13.62$12.64
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 NP 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.The peak day demandseason and during the winter 2017/2018of 2023/2024 (through January 31, 2018)2024) occurred on January 6, 201820, 2024 when the firm sales customers' demand reached 211approximately 169 MDt. “Design weather”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,Design Weather Conditions, the 2018/20192024/2025 service area peak day demand for firm sales customers will be 223235 MDt. The forecastedforecasted peak day demand at design conditions does not include gas used by

26
CON EDISON ANNUAL REPORT 2023


interruptible gas customers including electric generating stations. TheAs of January 2024, the company forecasts an average annual growthdecrease of the gas peak day demand for firm gas customers over the next five years at design conditions to beof approximately 0.30.2 percent in its service area.area, including the effect of certain gas energy efficiency programs, the electrification of space heating and the anticipated phase-out of natural gas in certain new construction buildings in New York State. The five-year forecast in peak demand is used by the company for gas supply and capital planning purposes.


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 201727


Clean Energy Businesses
Con Edison Development
Con Edison Development develops, owns and operates renewable and energy infrastructure projects. The company focuses its efforts on renewable electric production projects, and at the end of 2016 was the fifth largest owner of operating photovoltaic solar capacity in North America. 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 Con Edison Development's renewable electric production projects in operation at the end of the last five years:
Generating Capacity (MW AC)20132014201520162017
Renewable electric production projects2924467481,0981,358
The following table provides information about the projects the company has in operation and/or in construction at December 31, 2017:
Project NameProduction
Technology		Generating
Capacity (a)
(MW AC)		Purchased Power Agreement (PPA)Term (In Years) (b)Actual/Expected
In-Service Date (c)		Location
(State)
Wholly owned projects




PilesgroveSolar18(d)2011New Jersey
Flemington SolarSolar8(d)2011New Jersey
Frenchtown I, II and IIISolar14(d)2011-13New Jersey
PA SolarSolar10
2012Pennsylvania
California Solar 2 (e)Solar80202014-16California
Oak Tree WindWind20202014South Dakota
Texas Solar 3Solar6252015Texas
Texas Solar 5 (e)Solar95252015Texas
Campbell County Wind
Wind95302015South Dakota
Texas Solar 7 (e)Solar106252016Texas
California Solar 3 (e)Solar110202016California
Adams Wind (e)Wind2372016Minnesota
Valley View (e)Wind10142016Minnesota
Coram (e)Wind102162016California
Upton County Solar (e)Solar158252017Texas
Panoche Valley (partial)Solar62202017California
Projects of less than 5 MWSolar / Wind30VariousVariousVarious
Jointly owned projects (e) (f)




California SolarSolar55252012-13California
Mesquite Solar 1Solar83202013Arizona
Copper Mountain Solar 2Solar75252013-15Nevada
Copper Mountain Solar 3Solar128202014-15Nevada
Broken Bow IIWind38252014Nebraska
Texas Solar 4Solar32252014Texas
Total MW (AC) in Operation
1,358


Panoche Valley (partial)Solar178202018California
Big TimberWind25252018Montana
Total MW (AC) in Construction
203


Total MW (AC), All Projects
1,561


(a)Represents Con Edison Development’s ownership interest in the project.
(b)Represents PPA contractual term or remaining term from Con Edison Development’s date of acquisition.
(c)Represents Actual/Expected In-Service Date or Con Edison Development's date of acquisition.
(d)Solar Renewable Energy Credit hedges are in place, in lieu of PPAs, through 2021.
(e)Project has been pledged as security for debt financing.
(f)All of the jointly-owned projects are 50 percent owned, except for Texas Solar 4 (which is 80 percent owned). See Note Q to the financial statements in Item 8.





28CON EDISON ANNUAL REPORT 2017



Con Edison Development's renewable electric production volumes generated for the twelve months ended December 31, 2017 compared with the 2016 period were:
  Millions of kWh Generated
  For the Years Ended December 31, 
Description20172016VariationPercent Variation
Renewable electric production projects    
Solar2,1581,56559337.9%
Wind98865133751.8%
Total3,1462,21693042.0%

In May 2017, Con Edison Development sold a development-stage solar electric production project for $11 million and agreed to perform engineering, procurement and construction for the project (see Note U to the financial statements in Item 8).

Con Edison Energy
Con Edison Energy provides services to manage the dispatch, fuel requirements and risk management activities for 7,040 MW of generating plants and merchant transmission in the northeastern United States owned by unrelated parties and manages energy supply assets leased from others. The company also provides wholesale hedging and risk management services to renewable electric production projects owned by Con Edison Development and Con Edison Solutions.

Con Edison Solutions
Con Edison Solutions provides 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. The company is compensated for its services based primarily on the increased energy efficiency of the installed equipment over a multi-year period. Con Edison Solutions has won competitive solicitations for energy savings contracts with the United States Department of Energy and the United States Department of Defense, and a shared energy savings contract with the United States Postal Service. The company also develops, owns and operates behind-the-meter renewable energy projects, predominately in Massachusetts and New York, with an aggregate capacity of 45 MW (AC).
In September 2016, Con Edison Solutions sold its retail electric supply business to a subsidiary of Exelon Corporation for cash consideration of $235 million. In addition, Con Edison received $23 million in cash as a working capital adjustment in February 2017. The retail electric supply business primarily sold electricity to industrial, commercial and governmental customers in the northeastern United States and Texas and also sold electricity to residential and small commercial customers (mass retail market) in the northeastern United States. See Note U to the financial statements in Item 8. Con Edison Solutions’ electricity sales for the last five years were:
 2013
2014
2015
2016
2017
Retail electric volumes sold (millions of kWh)
12,167
11,871
13,594
9,843
—

For information about the Clean Energy Businesses' results, see "Results of Operations" in Item 7 and Note N to the financial statements in Item 8.

Con Edison Transmission
CET Electric
CET ElectricCon Edison Transmission owns a 45.7 percent interest in New York Transco LLC (NY Transco). Affiliates of certain otherthat is comprised of: a 45.7 percent interest in New York Transco's Transmission Owner Transmission Solutions (TOTS) projects; a 45.7 percent interest in New York Transco’s New York Energy Solution (NYES) project; and a 41.7 percent interest in New York Transco’s share of the Propel NY Energy project. Con Edison Transmission also owns a 71.2 percent interest in Honeoye Storage Corporation (Honeoye) and a 7.9 percent interest in Mountain Valley Pipeline, LLC (MVP) that is expected to be reduced to approximately 7.0 percent as described below.

TOTS is a group of three electric power bulk transmission owners ownprojects constructed on the remaining interests.
NY Transco's existing projects include three (called the TOTS Projects)New York bulk transmission system to increase transfer capability between upstate and downstate New York that the NYSPSC approvedwent in October 2013service in its proceeding to address potential needs that could arise should the Indian Point Energy Center (which is owned by Entergy Corporation subsidiaries) no longer be able to operate. The TOTS Projects include the two projects that CECONY developed and transferred to the NY Transco (see Note U to the financial statements in Item 8) and one project that another regulated affiliate of NY Transco developed. See “CECONY – Electric Operations – Electric Supply,” above.

CON EDISON ANNUAL REPORT 201729


In April 2015, FERC issued an order granting certain transmission incentives for NY Transco projects.2016. In March 2016, the FERC approved a November 2015 settlement agreement that provides in relation to the TOTS projects, for a 10 percent return on common equity (and/or(which is comprised of 9.5 percent for capital costs in excess of $228 million incurred for initial commercial operation)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 ofare collected by the projects areNYISO and allocated across NYISO transmission customers in New York State, with 63 percent allocated to load serving entities in the CECONY and O&R service areas.
In December 2015,
The NYES project was selected by the NYSPSC issued an orderNYISO in its competitive proceedingApril 2019 to select transmission projects that would relieve transmission congestion between upstate and downstate. The NYSPSC determined that there is a public policy need for new transmission to address the congestion, such as a projectdownstate ($1,000600 million estimated cost) proposed on behalfcost, excluding certain interconnection costs). During the second quarter of NY Transco. This NY Transco2023, construction was completed for the NYES project would be developed, at least initially, by National Grid and NY Transco. The NYSPSC also directed certain developers, including NY Transco,the associated Rock Tavern to submit project(s) to the NYISO. The NYISO evaluated the submitted projects under its FERC-approved public policy planning processSugarloaf segment, and in October 2016, submitted its list of viable and sufficient projects (including the NY Transco project) to the NYSPSC for its determination as to whether the transmission need still exists. In January 2017, the NYSPSC found that the public policy need still exists, asking the NYISO to proceed with selection. The NYISO may select one or morea majority of the viableassets were placed in service. Construction of the associated Dover Station, an additional network upgrade to support the NYES project, has not been completed and sufficient projects for development.its permits are the subject of litigation in New York State. In November 2017, FERC approved an August 2017a settlement agreement that provides for a 10.65 percent return on common equity (subject to(which is comprised of a 9.65 percent base ROE, with 100 basis points added for congestion reduction and a cost containment mechanism)mechanism applicable to certain capital costs) and a maximum actual common equity ratio of 53 percent. Under the settlement agreement, theThe interconnection costs of the projectsawarded 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, including the Dover Station, are collected by the NYISO including 100 percent of construction work-in-progress, and are allocated across NYISO transmission customers in New York State with approximately 84 percent allocated to load serving entities in the CECONY and O&R service areas.

The cost of the project(s)Propel NY Energy project that was selected by the NYISO wouldin June 2023 is a proposed 90-mile electric transmission project with an anticipated in-service date of 2030. Propel NY Energy is expected to enable delivery of a minimum of 3,000 MW of offshore wind electricity, increase high voltage transmission connections between Long Island and the rest of New York State and provide New Yorkers with greater access to diverse energy resources. New York Transco’s share is quantified as $2,200 million, excluding its interconnection costs and the cost of projects expected to be recoverable throughbuilt by local transmission owners, including CECONY. The siting, construction and operation of the NYISO’s tariff.project will require approvals and permits from appropriate governmental agencies and authorities, including the NYSPSC. In October 2023, NYSERDA announced that it selected three new offshore wind projects for contract negotiations, one of which is expected to connect 1,314 MW of offshore wind electricity using the capability of the Propel NY Energy project. See "Environmental Matters - Clean Energy Future," below. In December 2023, FERC, subject to refund and the outcome of settlement procedures, conditionally accepted a 53 percent equity capital structure for the Propel NY Energy project with a base return on equity of 10.7 percent, plus a 125 basis-point return on equity adder (50 basis points for participation in the NYISO and 75 basis points for risk).


CET Gas
CET Gas, through its subsidiaries,Con Edison Transmission owns a 71.2 percent interest in Honeoye, a company that operates a gas storage facility in upstate New York and in which CECONY owns the remaining interest. A goodwill impairment loss of $7 million was recorded related to Con Edison Transmission's and CECONY’s investment in Honeoye for the year ended December 31, 2021, of which $5 million was attributed to Con Edison Transmission. See Note K to the financial statements in Item 8.

MVP is a joint venture among five partners, including Con Edison Transmission, to construct and operate the Mountain Valley Pipeline, a proposed 300-mile gas transmission project in West Virginia and Virginia. Con Edison
CON EDISON ANNUAL REPORT 202327


Transmission owns a 7.9 percent interest in MVP that is expected to be reduced to approximately 7.0 percent based on Con Edison Transmission's previous capping of its cash contributions to the joint venture. In June 2023, construction activities for the Mountain Valley Pipeline resumed after resolution of certain legal challenges. In January 2024, the operator of the Mountain Valley Pipeline indicated that it is targeting an in-service date for the project in the first quarter of 2024 at an overall project cost of approximately $7,200 millionexcluding allowance for funds used during construction. Con Edison Transmission 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. At December 31, 2023, Con Edison Transmission’s carrying value of its investment in MVP was $111 million and its cash contributions to the joint venture amounted to $530 million. See "Investment in Mountain Valley Pipeline, LLC (MVP)" in Note A to the financial statements in Item 8.

During 2021, Con Edison Transmission sold its 50 percent interest in Stagecoach Gas Services LLC (Stagecoach), a 71.2 percent interest in Honeoye Storage Corporation (Honeoye) and a 12.5 percent ownership interest in Mountain Valley Pipeline LLC (MVP). Stagecoach is a joint venture with a subsidiary of Crestwood Equity Partners LP (Crestwood) to own, operate and further develop a gas pipeline and storage business located in northern Pennsylvania and southern New York.York for $629 million. Con Edison Transmission recorded pre-tax impairment losses of $212 million ($147 million after-tax). See "Investments - 2021 Partial Impairment of Investment in Stagecoach provides services to its customers (including CECONY, seeGas Services" in Note S to the financial statements in Item 8) through its 181 miles of pipe and 41 Bcf of storage capacity. Honeoye, in which CECONY owns the remaining interest, operates a gas storage facility in upstate New York. MVP is a joint venture with four other partners developing a proposed 300-mile gas transmission project in West Virginia and Virginia. In October 2017, FERC issued a Certificate of Public Convenience and Necessity for the Mountain Valley Pipeline. Environmental groups have filed a rehearing request with FERC and petitioned the U.S. Court of Appeals for the District of Columbia for review of the FERC's order issuing the certificate. In February 2018, the court denied their requests to stay commencement of construction until after these matters relating to the FERC’s order had been decided. MVP has indicated that the project has an estimated total cost of $3,000 million to $3,500 million, and is targeted to be fully in-service during the fourth quarter of 2018. See Note SA and Note UW to the financial statements in Item 8.


For information about Con Edison Transmission's results, see "Results of Operations" in Item 7 and Note NP to the financial statements in Item 8.



Clean Energy Businesses

On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note W and Note X to the financial statements in Item 8.
















30CON EDISON ANNUAL REPORT 2017




Capital Requirements and Resources
Capital Requirements
The following table contains the Companies’ capital requirements for the years 20152021 through 20172023 and their current estimate of amounts for 20182024 through 2020:2028:
 ActualEstimate
(Millions of Dollars)20212022202320242025202620272028
CECONY (a)(b)
Electric$2,189$2,522$2,909$3,277$3,554$4,171$4,128$4,115
Gas1,1261,1281,0461,1521,1161,1261,1561,177
Steam103108128104107110138142
Sub-total3,4183,7584,0834,5334,7775,4075,4225,434
O&R (b)
Electric147167211209350380367353
Gas7076858085928580
Sub-total217243296289435472452433
Con Edison Transmission31 65 49 2731108113119
Clean Energy Businesses (c)29839981—————
Total capital investments3,9644,4654,5094,8495,2435,9875,9875,986
Retirement of long-term securities  
Con Edison – parent company1,178293650—————
CECONY640—— 250—250350800
O&R— — — ———80—
Clean Energy Businesses (c)14114760 —————
Total retirement of long-term securities1,959440710250—250430800
Total capital requirements$5,923$4,905$5,219$5,099$5,243$6,237$6,417$6,786
  ActualEstimate
(Millions of Dollars)2015
20162017
2018
2019
2020
CECONY (a)(b)      
Electric$1,658$1,819$1,905$1,933$1,868$1,894
Gas6718119099709701,015
Steam106126901059587
Sub-total2,4352,7562,9043,0082,9332,996
O&R      
Electric114114128139146137
Gas465261625653
Sub-total160166189201202190
Con Edison Transmission      
CET Electric—
51—
—
—
—
CET Gas—
1,0276636014—
Sub-total—
1,0786636014—
Clean Energy Businesses8231,235447400400400
Total capital expenditures3,4185,2353,6063,9693,5493,586
Retirement of long-term securities      
Con Edison – parent company2240223402
CECONY350650—
1,200475350
O&R1437945562—
Clean Energy Businesses4428413839
Total retirement of long-term securities4997354341,298578791
Total capital requirements$3,917$5,970$4,040$5,267$4,127$4,377
(a)(a)CECONY’s capital expenditures for environmental protection facilities and related studies were $224 million, $259 million and $381 million in 2015, 2016 and 2017, respectively, and are estimated to be $426 million in 2018.
(b)Amounts shown do not include amounts for the energy efficiency, demand reduction and combined heat and power programs.

The Utilities have an ongoing need to make substantial capital investments primarilyfor environmental protection facilities and related studies were $731 million, $733 million and $589 million in 2021, 2022 and 2023, respectively, and are estimated to maintainbe $600 million in 2024.
(b)Amounts and estimates shown do not include amounts for the reliability of theirsystem peak reduction, energy efficiency and electric gasvehicle make ready programs. See "Regulatory Assets and steam delivery systems. Their estimated construction expenditures also reflect programs that will give customers greater control over their energy usage and bills, help integrate customers' new clean energy technologies intoLiabilities" in Note B to the Utilities’ electric delivery systems and accelerate the replacement of leak-prone gas distribution mains and service lines.financial statements in Item 8.

Estimated capital expenditures for(c)On March 1, 2023, Con Edison Transmission primarily reflect planned investments incompleted the MVP gas transmission project. Estimated capital expenditures forsale of all of the stock of the Clean Energy Businesses primarily reflect planned investmentsBusinesses. See Note W and Note X to the financial statements in renewable electric production projects. Actual capital expenditures for Con Edison Transmission and the Clean Energy Businesses could increase or decrease significantly from the amounts estimated depending on opportunities.Item 8.


28
CON EDISON ANNUAL REPORT 2023


Contractual Obligations
The following table summarizes the Companies’ material obligations at December 31, 20172023 to make payments pursuant to contracts. Long-term debt, operating and capital lease obligations and other noncurrent liabilities are included on their balance sheets. Operating leasesElectricity and electricitygas purchase agreements (for which undiscounted future annual payments are shown) are described in the notes to the financial statements.

  Payments Due by Period
(Millions of Dollars)Total1 year
or less		Years
2 & 3
Years
4 & 5
After 5
years
Long-term debt (Statement of Capitalization) (a)
CECONY$21,275$250 $250$1,150$19,625
O&R1,125— — 80 1,045
Parent——— — — 
Interest on long-term debt (b)20,3191,0061,9971,95615,360
Total long-term debt, including interest (a)(b)42,7191,2562,2473,18636,030
Finance lease obligations (Note J)
CECONY11 — — — 
O&R1— — — 1 
Total capital lease obligations21 — — 1 
Operating leases (Note J)
CECONY68866132125365
O&R11 — — — 
Total operating leases (c)68967132125365
Purchase obligations
Electricity power purchase agreements – Utilities (Note I)
CECONY
Energy1,6061022422511,011
Capacity (d)72815114388346
Total CECONY2,3342533853391,357
O&R
Energy and Capacity (d)1427270— — 
Total electricity and power purchase agreements – Utilities2,4763254553391,357
Natural gas supply, transportation, and storage contracts – Utilities (Note I) (e)
CECONY
Natural gas supply282258186 — 
Transportation and storage4,2684508186132,387
Total CECONY4,5507088366192,387
O&R
Natural gas supply454131 — 
Transportation and storage6817112898384
Total O&R72611213199384
Total natural gas supply, transportation and storage contracts5,2768209677182,771
Other purchase obligations (f)
CECONY4,1561,3501,650743413
O&R16993201442
Total other purchase obligations4,3251,4431,670757455
Total$55,487$3,912 $5,471 $5,125 $40,979 

(a)Excludes amounts reclassified as Liabilities Held For Sale on Con Edison's balance sheet. Amounts excluded are $2 million, $5 million, $6 million, and $49 million of long-term debt amortization under 1 year, 2-3 years, 4-5 years, and over 5 years, respectively. See Note W and Note X to the financial statements in Item 8.
(b)Amounts exclude interest on fixed rate debt calculated at rates in effect at December 31, 2023. Amounts excluded are $3 million, $6 million, $5 million, and $14 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 Note W and Note X to the financial statements in Item 8.
(c)Amounts exclude operating lease future minimum lease payments reclassified as Liabilities Held For Sale on Con Edison's balance sheet, of $3 million in total for years ended December 31, 2024 through 2028, and $10 million for all years thereafter, and imputed interest of $6 million. See Note W and Note X to the financial statements in Item 8.
(d)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.
(e)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.
CON EDISON ANNUAL REPORT 201720233129


  Payments Due by Period
(Millions of Dollars)Total1 year
or less		Years
2 & 3
Years
4 & 5

After 5
years

Long-term debt (Statement of Capitalization) 

  
CECONY$13,386$1,200$825
$—
$11,361
O&R6665562—
549
Clean Energy Businesses915417782715
Parent1,2042405797—
Interest on long-term debt (a)13,3147341,2581,17910,143
Total long-term debt, including interest29,4852,0322,6272,05822,768
Capital lease obligations (Note J)     
CECONY11—
—
—
Total capital lease obligations11—
—
—
Operating leases (Notes J and Q)     
CECONY91855111107645
O&R5131—
Clean Energy Businesses13371213101
Total operating leases1,05663126121746
Purchase obligations     
Electricity purchase power agreements – Utilities (Note I)     
CECONY     
Energy2,136961972041,639
Capacity (b)1,338255309118656
Total CECONY3,4743515063222,295
O&R     
Energy and Capacity (b)12663621—
Total electricity and purchase power agreements – Utilities3,6004145683232,295
Natural gas supply, transportation, and storage contracts – Utilities (c)    
CECONY     
Natural gas supply22718641—
—
Transportation and storage3,1972605885451,804
Total CECONY3,4244466295451,804
O&R     
Natural gas supply35287—
—
Transportation and storage486408983274
Total O&R521689683274
Total natural gas supply, transportation and storage contracts3,9455147256282,078
Other purchase obligations     
CECONY (d)5,1921,4212,2871,46024
O&R (d)30088995063
Clean Energy Businesses (e)2432043333
Total other purchase obligations5,7351,7132,4191,51390
Total$43,822$4,737$6,465$4,643$27,977
(a)Includes interest on variable rate debt calculated at rates in effect at December 31, 2017.
(b)Included in these amounts is the cost of minimum quantities of energy that the company is obligated to purchase at both fixed and variable prices.
(c)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.
(d)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. The Utilities believe that unreasonable effort and expense would be involved to enable them to report their “Other Purchase Obligations” in a different manner.
(e)Amounts represent commitments to purchase minimum quantities of electric energy and capacity, renewable energy certificates, natural gas, natural gas pipeline capacity, energy efficiency services and construction services entered into by the Clean Energy Businesses.


32CON EDISON ANNUAL REPORT 2017





(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 $3,468 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.

The Companies’ commitments to make payments in addition to these contractual commitments include their other liabilities reflected inon 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 guaranteesguarantee of certain obligations of the Clean Energy Businesses and CET – Electric.obligations. See Notes E, F, OQ 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, and the sale of its securities.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, or proceeds from the sale of its securitiesadditional common shares or its interests in its subsidiaries.subsidiaries or additional external borrowings. See "Con Edison's Ability To Pay Dividends Or Interest Depends On Dividends From Its Subsidiaries" in Item 1A.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 toTo 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 stockshares and other securities when it is necessary or advantageous to do so. For information about the Companies’ long-term debt and short-term borrowing, see Notes C and D to the financial statements in Item 8.

Con Edison plans to meet its 2018 capital requirements through internally-generated funds and the issuance of securities. The company's plans include the issuance of between $1,300 million and $1,800 million of long-term debt at the Utilities, and the issuance of additional debt secured by its renewable electric production projects. The plans also include the issuance of up to $450 million of common equity in addition to equity under its dividend reinvestment, employee stock purchase and long term incentive plans. The plans do not reflect the provision to the Utilities’ customers of any TCJA benefits that the NYSPSC and the NJBPU may require to be provided. See “Changes to Tax Laws Could Adversely Affect the Companies” in Item 1A, “Other Regulatory Matters” in Note B and Note L 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 2024 through 2028 through internally-generated funds and the issuance of long-term debt and common equity. See “Capital Requirements and Resources - Capital Requirements" in Item 1. Con Edison's plans include the issuance of up to $3,250 million of long-term debt in 2024 and up to $1,000 million of long-term debt in 2025, including for maturing securities, at the Utilities and approximately $6,000 million in aggregate of long-term debt, including for maturing securities, at the Utilities during 2026 through 2028. Except for equity issued under its dividend reinvestment, employee stock purchase and long-term incentive plans, Con Edison does not plan to issue common equity in 2024 and plans to issue common equity of approximately $1,300 million in 2025 and up to $2,800 million in aggregate during 2026 through 2028. Con Edison’s estimates of its capital requirements and related financing plans reflect information available and assumptions at the time the statements are made and include, among other things, the assumptions that Con Edison’s non-utility gas transmission investments remain unchanged through 2028 and the Utilities’ forecasted capital investments and financing plans through 2028 are approved by the New York State Public Service Commission. Actual developments and the timing and amount of funding may differ materially.

In 2016,2021, the NYSPSC authorized CECONY, through 2019,2025, to issue up to $5,200$4,025 million of debt securities ($2,5003,450 million of which the company had issued as of December 31, 2017)2023). In 2017,2022, the NYSPSC authorized O&R, through 2021,2025, to issue up to $310$285 million of debt securities (none($150 million of which the company had issued as of December 31, 2017)2023). The NYSPSC also authorized CECONY and O&R for such periods to issue up to $2,500 million and $150 million, respectively, of debt securities to refund existing debt securities. Atsecurities of up to $2,500 million and $125 million, respectively. As of December 31, 2017,2023, the Utilities had not refunded any securities pursuant to this authorization.these authorizations.
The Clean Energy Businesses have financed their operations and capital requirements primarily with capital contributions and borrowings from Con Edison, internally-generated funds and external borrowings.
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 ratio of earnings to fixed charges (SEC basis) for the last five years was:
 Ratio of Earnings to Fixed Charges
 2013
 2014
2015
2016
2017
Con Edison3.0
(a)3.6
3.5
3.6
3.6
CECONY3.7
 3.8
3.6
3.6
3.7
(a)Reflects $95 million after-tax charge to earnings relating to Con Edison Development’s LILO transactions that were terminated in 2013.


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CON EDISON ANNUAL REPORT 2017332023





For each of the Companies, the common equity ratio for the last five years was:
Common Equity Ratio
(Percent of total capitalization)
20192020202120222023
Con Edison49.6 48.3 47.4 50.9 49.1 
CECONY49.2 47.9 47.0 46.9 47.9 
 
Common Equity Ratio
(Percent of total capitalization)
 20132014201520162017
Con Edison54.052.252.149.351.1
CECONY53.850.951.449.550.8
At December 31, 2017, theThe 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 wereare as follows:


Moody'sS&PFitch
Con Edison
Moody'sS&PFitch
Con Edison
Senior Unsecured DebtBaa1BBB+BBB+
Commercial PaperP-2A-2F2
CECONY
Senior Unsecured DebtA3BBB+A-BBB+A-
Commercial PaperP-2A-2F2
CECONYO&R
Senior Unsecured DebtA2Baa2A-A-
Commercial PaperP-1P-2A-2F2
O&R
Senior Unsecured DebtA3A-A-
Commercial PaperP-2A-2F2


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.

Environmental Matters
Clean Energy Future
New York State’s Climate Leadership and Community Protection Act
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 MW by 2035), solar (6,000 MW by 2025) and energy storage (3,000 MW by 2030). The CLCPA established a climate action council that made recommendations for meeting the statewide greenhouse gas (GHG) emission reduction requirements through displacing fossil-fuel fired electricity with renewable electricity, transitioning heating and transportation to lower GHG impact fuels (including substantial electrification), implementing energy efficiency measures and providing 35 percent to 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) 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.

CECONY has $636 million of tax-exempt debtand O&R have been required to obtain renewable energy credits (RECs) and zero-emissions credits (ZECs) for their full service customers since 2017. In October 2020, the NYSPSC, in response to the CLCPA, established a new 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. 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 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.) that anticipate in-service dates of 2026 and 2027, respectively.
CON EDISON ANNUAL REPORT 202331


Both projects have submitted requests to the NYISO to interconnect to CECONY’s high-voltage transmission system.

In June 2023, the NYISO selected the Propel NY Energy transmission project that was jointly proposed by New York Transco and the New York Power Authority (NYPA). Con Edison Transmission has a 41.7 percent interest rates arein New York Transco’s share of the Propel NY Energy project, a 90-mile electric transmission project with an in-service date of 2030. The project is expected to enable delivery of a minimum of 3,000 MW of offshore wind electricity, increase high voltage transmission connections between Long Island and the rest of New York State and provide New Yorkers with greater access to diverse energy resources. See "Con Edison Transmission," below.

Also in June 2023, CECONY filed a petition with FERC to add a formula rate to the NYISO tariff to enable CECONY to recover the costs of, and a return on investment for, two types of projects: (1) local transmission upgrades determined by the NYSPSC to be determined pursuantnecessary or appropriate to periodic auctions. Of this amount, $391 millionmeet the CLCPA goals of New York State and (2) any regulated transmission projects (or portions thereof) eligible for recovery under the NYISO’s public policy transmission planning process. For local transmission upgrades, CECONY proposed the return on equity to be the lower of the NYSPSC-determined rates or 10.87 percent. For NYISO projects, CECONY proposed a return on equity of 11.10 percent. CECONY anticipates that the formula rate, once in place, will be applied to recover the costs of the upgrades associated with the Propel NY Energy offshore wind project.

In November 2023, CECONY and O&R filed their combined gas system long-term plan. The Utilities’ plan has a 20-year horizon to achieve the greenhouse gas emissions reduction targets of the CLCPA and includes three pathways: (1) a reference pathway based on investments approved by the NYSPSC, (2) an alternate hybrid electric generation and low-carbon fuels pathway and (3) an alternate deep electrification pathway. The plan outlines objectives in clean energy, climate resilience, core service, and customer engagement and includes forecasts of annual customer bill charges. The plan concludes that gas sales and emissions in CECONY’s and O&R’s service territories are projected to fall in all three pathways.

Offshore Wind
In an effort to meet the CLCPA’s offshore wind goals, load serving entities, such as CECONY and O&R, will be required to purchase offshore wind renewable energy credits beginning in 2025 when projects are expected to begin operation.

In October 2023, NYSERDA announced that it selected three new offshore wind projects for contract negotiations, representing 4,032 MW of energy by 2030 One of the conditional awards, the Community Offshore Wind project, is insuredexpected to connect 1,314 MW of offshore wind electricity through CECONY’s Brooklyn Clean Energy Hub by Ambac Assurance Corporation2030 (see “Electric Reliability Needs,” above) and $245 millionanother conditional award, the Excelsior Wind project, is insured by Syncora Guarantee Inc. (formerly XL Capital Assurance Inc.). Credit rating agencies have withdrawnexpected to connect 1,314 MW of offshore wind electricity using the ratingscapability of these insurers. Subsequently, there have not been sufficient bids to determine the interest rates pursuant to auctions,Propel NY Energy project. See "Con Edison Transmission," above.

Energy Efficiency
In January 2020, and interest rates have been determined by reference to a variable rate index. updated in August 2022, the NYSPSC issued an order directing energy efficiency targets and budgets for New York utilities. The weighted average annual interest rate on this tax-exempt debt was 2.05 percent onDecember 31, 2017. The weighted average interest rate was 1.41 percent, 0.75 percentorder approved electric and 0.14 percentgas energy efficiency programs and heat pump budgets, and associated targets, for the years 2017, 20162020 through 2025 to meet the NYSPSC’s goal of reducing electric use by 3 percent annually and 2015,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. Under CECONY’s current electric gas and steamgas rate plans variationsallow it to recover the costs of energy efficiency expenditures, including a full rate of return, in auction rate debt interest expense are reconciledrates from customers. See Note B to the financial statements in Item 8.

In November 2023, and updated in January 2024, CECONY and O&R filed preliminary proposals for energy efficiency and heat pump programs for 2026-2030 with aggregate budgets of approximately $2,744 million and $129 million, respectively. The aggregate amounts are comprised of average annual budgets of up to: $373 million and $22 million for electric energy efficiency and heat pump programs for CECONY and O&R, respectively, $150 million and $4 million for gas energy efficiency programs for CECONY and O&R, respectively, and $26 million for steam energy efficiency programs for CECONY.




32
CON EDISON ANNUAL REPORT 2023


Electric Vehicles
In July 2020, the NYSPSC established light-duty electric vehicle make-ready and other infrastructure programs that included budgets of $290 million and $24 million for CECONY and O&R, respectively, through 2025. In November 2023, the light-duty infrastructure and other programs, including medium and heavy-duty make-ready pilot projects and a new micromobility infrastructure incentive program, were expanded to approximately $823 million for CECONY and $56 million for O&R, with the ability to extend beyond 2025. The NYSPSC authorized CECONY and O&R to recover these costs, including a full rate of return, through surcharge mechanisms and subsequently in rates from customers.

In July 2022, the NYSPSC issued an order that provides CECONY and O&R with up to a total of $31 million and $5.8 million, respectively, through 2025, for implementation of residential vehicle managed charging programs and administration costs. The NYSPSC authorized CECONY and O&R to recover these costs through surcharge 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.

In November 2023, the NYSPSC issued an order that provides CECONY and O&R with up to $432 million and $18 million, respectively, for the implementation of commercial managed charging programs and demand charge rebates, participant incentives and administration costs. The NYSPSC authorized CECONY and O&R to recover these costs, including a full rate of return, through surcharge mechanisms and subsequently in rates from customers.

Energy Storage
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 required CECONY and O&R to file implementation plans for a competitive procurement process to deploy 300 MW and 10 MW, respectively, of energy storage. CECONY and O&R filed their implementation plans in February 2019. CECONY is in contract negotiations with storage developers and O&R is evaluating bids from storage developers. The Utilities expect to recover the cost of energy storage services, including a full rate of return, in rates and surcharges 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.

Thermal Energy Networks
In September 2023, the NYSPSC issued an order providing guidance on the development and implementation of utility-scale thermal energy network pilot projects throughout New York State. The order introduced a framework for the NYSPSC to evaluate whether the proposed pilot projects are in the public interest. In December 2023, CECONY and O&R filed pilot project proposals with budgets of $255 million and $46 million, respectively. The proposed pilots are subject to approval by the NYSPSC.


Distribution System and Distributed Resources
The NYSPSC is directing development by New York electric utilities of a distributed system platform to manage and coordinate distributed energy resources 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. 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, 2023, 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 substantially completed its smart meter installations in 2023 and expects to complete its AMI installation plan in 2024. The NYSPSC also authorized O&R to expend $98.5 million to install AMI for its New York customers, which work was complete as of December 31, 2020.
CON EDISON ANNUAL REPORT 202333



The NYSPSC began to change compensation for DERs and place limits on net energy metering (NEM) in 2015. In New York, 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 on non-participating customers to two percent. In addition, NEM projects interconnected on or after January 1, 2022 are charged for their share of energy efficiency and other public policy benefit programs.

New York City’s Clean Energy Goals
In 2014, New York City announced a goal to reduce GHG emissions 80 percent below 2005 levels setby 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.

Federal Regulation
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 Section 111 of 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 rates.the case and had argued that the U.S. Supreme Court should not adopt this restrictive statutory reading of the Clean Air Act. Depending on how it is implemented in future final EPA regulations, which are currently undergoing federal rulemaking, 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. Certain CECONY electric generating units could be subject to the final rule, depending on its applicability criteria. The Companies are unable to predict the impact on them as a result of the decision or any final regulations that may be promulgated by the EPA.


Environmental Matters
Climate Change
As indicated by the Intergovernmental Panel on Climate Change, emissions of greenhouse gases (GHG), including carbon dioxide, from manmade sources 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-related events. In late October 2012,weather. Past major weather events such as Superstorm Sandy in 2012 and Tropical Storm Isaias in 2020 caused extensive damage tolarge power outages in the Utilities’ electric distribution system. Superstorm Sandy interrupted service to approximately 1.4 million of the Utilities’ customers – more than four times the number of customers impacted by the Utilities’ previous worst storm event (Hurricane Irene in 2011)territories and resulted in the Utilities incurring substantial response and restoration costs.

In September 2023, CECONY updated the climate change vulnerability study it issued in 2019 and O&R published its first climate change vulnerability study. The studies were developed pursuant to a New York State Public Service law that requires all New York electric utilities to release a climate change vulnerability study and file with the NYSPSC a subsequent climate change resilience plan at least every five years. The law authorizes utilities to recover costs incurred outside of the rate plans through a surcharge and to subsequently include approved costs into base rates during the next rate case proceeding. The Utilities’ studies identified rising temperatures, inland flooding, sea level rise, storm surge, high winds, ice accumulation and extreme and compound weather events to be the biggest risks to their systems. The resulting extreme weather events brought about by climate change are manifested in increased system load, asset degradation, equipment damage and worker safety and accessibility concerns.

In November 2023, CECONY and O&R filed climate change resilience plans with the NYSPSC that proposed to make investments of $903 million and $411 million, respectively, between 2025 and 2029 to enhance the resilience of their electric systems against extreme weather events brought about by climate change. The projected total cost of CECONY’s and O&R’s resilience investments from 2025 through 2044 are expected to be $5,600 million and $1,400 million, respectively. These investments are subject to approval by the NYSPSC.

GHG Emissions Reporting

34
CON EDISON ANNUAL REPORT 2023


Based on the most recent data (2016)(2021) 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. Con Edison’s estimated Scope 1 emissions of GHG during the past five years were:
(Metric tons, in millions (a))
20192020202120222023
CO2 equivalent emissions2.9 2.7 2.8 2.9 2.7 
(Metric tons, in millions (a))
2013
2014
2015
2016
2017
CO2 equivalent emissions3.4
3.2
3.2
3.1
3.0
(a)Estimated emissions for 2017 are based on preliminary data and are subject to third-party verification.

34CON EDISON ANNUAL REPORT 2017



(a)Estimated emissions for 2023 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 50more than 54 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 asand projects to reduce sulfur hexafluoride emissions and to replace leak-prone gas distribution pipes. 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. The electricity produced by renewable generation offsets the energy that the Utilities would otherwise have procured, thereby reducing the amount of electricity produced by non-renewable production facilities. The Utilities also actively promote energy efficiency and the use of renewable generation to help their customers reduce their GHG emissions.
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 by operating system components at lower pressure and by introducing newutilizing technologies to prioritize leak repairs and to reduce lossesfugitive 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.
NYSERDA and New York utilities had been responsible for implementing the Energy Efficiency Portfolio Standard (EEPS) established by the NYSPSC through energy efficiency programs designed and managed by NYSERDA and the utilities and authorized by the NYSPSC. CECONY billed customers EEPS surcharges of approximately $103 million in 2015 and 2014 to fund these programs. EEPS authorization endedIn December 2015. Beginning January 2016, New York utilities have implemented Energy Efficiency Transition Implementation Plans (ETIPs) and are responsible for designing and managing their energy efficiency programs consistent with NYSPSC-approved, utility-specific program budgets and metrics. Effective January 2016, the utilities are recovering the costs of their ETIP programs from their customers primarily through NYSPSC-approved energy efficiency tracker surcharge mechanisms. The Utilities billed customers $99 million and $107 million in 2017 and 2016, respectively, through the tracker surcharge mechanism. Pursuant to CECONY's current electric rate plan, the company will supplement its existing ETIP programs with new energy efficiency, electric vehicle and system peak reduction programs, the cost of which will be reflected in base rates. See Note B to the financial statements in Item 8. The annual budgets of the existing and new programs are approximately $150 million and $208 million in 2018 and 2019, respectively.
Through the Utilities' energy-efficiency programs, customers reduced their annual energy use by approximately 1,578,000 MWh of electricity and 2,141,000 Dt2023, NYSDEC issued a proposed regulation that would impose an emissions limit on owners of gas from the programs’ inceptioninsulated equipment containing sulfur hexafluoride, including equipment used in 2009 through 2017, resulting in their avoiding the release of approximately 1,162,000 short tons of GHG into the atmosphere in 2017. In addition, CECONY’s other demand-side management programs assisted customers in reducing their annual energy use by approximately 345,000 MWh of electricity from the programs’ inception in 2004 through 2017, resulting in their avoiding the release of approximately 195,000 short tons of GHG into the atmosphere in 2017.electric power transmission and distribution.
Emissions are also avoided by renewable electric production facilities replacing fossil-fueled electric production facilities. NYSERDA has been responsible for implementing the renewable portfolio standard (RPS) established by the NYSPSC. NYSERDA has entered into long-term agreements with developers of large renewable electric production facilities and pays them premiums based on the facilities’ electric output. These facilities sell their energy output in the wholesale energy market 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. The Utilities billed customers RPS surcharges of $19 million in 2016, (and approximately $697 million cumulatively from 2006) to fund these NYSERDA programs. In March 2016, NYSERDA reported that the statewide environmental benefits of having electricity generated by renewable production facilities from 2006 through 2015, as opposed to the State’s “system-mix,” amounts to approximately 6,700 tons of nitrogen oxides, 12,200 tons of sulfur dioxides and 6.4 million tons of carbon dioxide in reduced emissions over this time period.
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 have eliminated the separate RPS tariff and now collect all clean energy fund surcharges from their customers 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).charge. The Utilities billed customers clean energy fund surcharges of $298$224 million, $216 million and $277$224 million in 20172023, 2022, and 2016,2021, respectively. For information about NYSPSC proceedings considering renewable generation see “Utility Regulation – State Utility Regulation – New York Utility Industry – Reforming the Energy Vision," above.
In June 2015, the New York State Energy Planning Board released its 2015 State Energy Plan. Under New York State law, any energy-related action or decision of State agencies must be reasonably consistent with the plan. The

CON EDISON ANNUAL REPORT 201735


plan reflects clean energy initiatives, including the REV proceeding, NYSERDA’s clean energy fund and the following goals for New York State to meet by 2030: a 40 percent reduction in greenhouse gas emissions from 1990 levels; 50 percent of electric generation from renewable energy sources; and a 23 percent decrease in energy consumption in buildings from 2012 levels. For information about the NYSPSC's adoption of a clean energy standard to mandate achievement of the State Energy Plan's goals, see "Utility Regulation – State Utility Regulation – New York Utility Industry – Reforming the Energy Vision," above. Also, New York State and New York City have announced goals to reduce GHG emissions 80 percent below 1990 and 2005, respectively, levels by 2050.
In 2015, the United States Environmental Protection Agency (EPA) issued its Clean Power Plan to reduce carbon dioxide emissions from existing power plants 32 percent from 2005 levels by 2030. Under the Clean Power Plan, each state is required to submit for EPA approval a plan to reduce its emissions to specified rate-based or equivalent mass-based target levels (as determined in accordance with the Clean Power Plan) applicable to the state. For New York State, the emissions rate-based target level for 2030 is approximately 20 percent below its 2012 emissions rate. State plans may, among other things, include participation in regional cap-and-trade programs. In 2017, the EPA proposed to repeal its Clean Power Plan and issued an advanced notice of proposed rulemaking to solicit information as the EPA considers proposing a future rule.
CECONY is subject to carbon dioxide emissions regulations established by New York State under RGGI.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. CECONY has purchased sufficient allowances of 6.64 million short tons to meet its requirement for the most recent RGGI compliance period (2015-2017).emissions. CECONY will purchase RGGI allowances duringfor the next compliancesixth control period (2018-2020)(2024 – 2026) 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 the Companies’ GHG emissions could be substantial.


Environmental Sustainability
Con Edison’s sustainability strategy, as it relates to the environment, provides that the company seeks, to reduce its environmental footprint by making effective use of natural resources to address the challenges of climate change and its impact on the company’s business. As part of its strategy, the company seeks, among other things, to reduce direct and indirect GHG emissions; enhance the efficiency of its water use; minimizereduce its impact to natural ecosystems; focus on reducing, reusing and recycling to minimize consumption;lower materials consumption and disposal; and design its work in consideration of climate forecasts.projections.


Con Edison has adopted a Clean Energy Commitment whereby it commits to 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
CON EDISON ANNUAL REPORT 202335


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 New York State Department of Environmental Conservation (NYSDEC)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.

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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 six14 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 threefour sites under the NYSNew York 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 $453 $686 million to $2,110$2,548 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, New York. 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 reports 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 $163$301 million to $503$884 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, New York. In March 2010, the EPA added the Gowanus Canal to its National Priorities List of Superfund sites. The canal��scanal’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 or lower)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 has 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 $68$113 million. CECONY is participating with other PRPs in an allocation process to determine each PRP’sfunding its allocated share of the liability for these remedial design costs.costs along with the other PRPs. In June 2015,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

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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. 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 1421 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, New York. 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 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 EPA’s current schedule anticipates completion of a feasibility study for the site by late 2018during 2027 and issuance of itsthe EPA's record of decision selecting a remedy for the site by late 2020.thereafter. CECONY is unable to estimate its exposure to liability for the Newtown Creek site.


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Other Superfund Sites
In September 2007, the NYSDEC demanded that the company investigate and remediate PCB contamination that may have migrated from a former CECONY service center facility in Flushing New York, into the adjacent Flushing River. In April 2008, the company and the NYSDEC entered into a consent order under which the company agreed to implement a NYSDEC-approved investigation program for the Flushing River and, if deemed necessary by the NYSDEC to protect human health and the environment, to implement a NYSDEC-approved remediation program for any PCB contamination in the river attributable to the site. In March 2011, the company submitted to the NYSDEC a report indicating that PCBs had migrated from the site to sediment in a portion of the river. In August 2013, the NYSDEC selected a remedy that requires the company to submit a remedial design report, remove contaminated sediment, restore the river bed with clean material, prepare a site management plan and implement institutional controls. The final remedial design was submitted to and approved by the NYSDEC in 2017. CECONY has since procured a contractor, obtained all necessary permits and initiated the work in January 2018. The company estimates that its undiscounted potential liability for the completion of the cleanup in Flushing River could range from $4 million to $6 million.
In the fourth quarter of 2016, CECONY and another utility responded to a reported dielectric fluid leak at a New Jersey marina on the Hudson River associated with one or two underwater transmission lines, the New Jersey portion of which is owned and operated by the other utility and the New York portion of which is owned and operated by CECONY. During the third quarter of 2017, after the marina owner had cleared substantial debris from its collapsed pier, a dielectric fluid leak was found and repaired on one of the underwater transmission lines. In the fourth quarter of 2017, sediment regrading was completed in underwater areas of the marina that had been disturbed during the leak search and repair efforts. It also was discovered that the marina owner had previously placed substantial rip rap material over and in the vicinity of the feeders in an attempt to shore up its failing pier. The marina owner has now removed a portion of this material. In the first quarter of 2018, it is anticipated that CECONY and the other utility will continue their efforts to release residual dielectric fluid that may be trapped in the bottom of the marina.  Monitoring also will be conducted to evaluate whether any further action is necessary. CECONY expects that, consistent with the cost allocation provisions of their prior arrangements for the transmission lines, the costs to respond to the incident and repair the line, net of any recovery from the marina owner, will be shared by CECONY and the other utility. At December 31, 2017, the response and repair costs amounted to approximately $39 million, including those costs incurred by CECONY and those costs which the company has been notified have been incurred by the other utility and the U.S. Coast Guard.

In May 2017, a transformer failure at a CECONY substation discharged thousands of gallons of transformer oil into the soil. Some of the transformer oil, which contained small amounts of PCBs, leaked into the East River. The company, the U.S. Coast Guard, the NYSDEC and other agencies responded to the incident. The company has replaced the transformer, and is continuing to remediate and monitor the site, the costs of which are not expected to have a material adverse effect on its financial condition, results of operations or liquidity. In connection with the incident, the company may incur monetary sanctions of more than $0.1 million for violations of certain provisions regulating the discharge of materials into, and for the protection of, the environment.

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 damagesdamages in aggregate for the sites below, other than the sites where the percentage of total liability has not been determined, 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.

SiteLocationStart
Court or
Agency
% of Total
Liability
Cortese LandfillNarrowsburg, NY1987EPA6.0%
Curcio Scrap MetalSaddle Brook, NJ1987EPA100.0%
Metal Bank of AmericaPhiladelphia, PA1987EPA1.0%
Global LandfillOld Bridge, NJ1988EPA0.4%
Borne ChemicalElizabeth, NJ1997NJDEP0.7%
Pure EarthVineland, NJ2018EPAto be determined
Scientific Chemical ProcessingCarlstadt, NJ2023EPA to be determined

Other Environmental Matters
Following media reports, in July 2023, the Environmental Protection Agency, New York State Department of Environmental Conservation, New York State Department of Health and NYSDPS began investigating the potential public health risks associated with lead-jacketed cables in the fixed-line telecommunications industry. The use of
38CON EDISON ANNUAL REPORT 2017202337





lead-jacketed electric cables began in the 1880s to protect conducting wires from exposure to the elements. All of the Utilities’ transmission cables that are in service and lead-jacketed are covered with an outer plastic layer and comprise less than 2 percent of CECONY’s transmission system and less than 5 percent of O&R’s transmission system. CECONY installed lead-jacketed cables without an outer plastic layer in its distribution system until the 1980’s. CECONY’s distribution cables that are in service and lead-jacketed may or may not have an outer plastic layer and may be located within a conduit and manhole system, directly buried or strung in the air between poles and comprise less than 14 percent of its distribution system. O&R’s distribution cables are not lead-jacketed. CECONY’s transmission and distribution systems also contain lead-jacketed cables that were retired in place. CECONY continues to replace lead-jacketed distribution cables, as needed, and recover the costs for cable replacements, pursuant to its electric rate plan. The Companies are unable to predict the impact on them, if any, resulting from potential developments to legal or public policy doctrines regarding cable that contains lead.

SiteLocationStart
Court or
Agency
% of Total
Liability
Cortese LandfillNarrowsburg, NY1987EPA6.0%
Curcio Scrap MetalSaddle Brook, NJ1987EPA100.0%
Metal Bank of AmericaPhiladelphia, PA1987EPA1.0%
Global LandfillOld Bridge, NJ1988EPA0.4%
Borne ChemicalElizabeth, NJ1997NJDEP0.7%
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, New York. 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 the discharge occurred and has completed the spill recovery and associated cleanup operations. As a result of the discharge, CECONY received third-party damage claims. The costs associated with this matter are not expected to have a material adverse effect on CECONY’s financial condition, results of operations and liquidity. In connection with the incident, CECONY 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 New Jersey marina on the Hudson River associated with one or two underwater transmission lines, the New Jersey portion of which is owned and operated by the other utility and the New York 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. 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. In December 2023, CECONY, the other utility and the marina owner settled all of the claims in a litigation regarding response and repair costs and related damages.

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, New York. 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 at all seven of its MGP sites and has received the NYSDEC’s decision regarding the remedial work to be performed at sixall seven of theits MGP sites. Of the sixseven 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 two 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 $100from $92 million to $156$145 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.

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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.
SiteLocationStart
Court or
Agency
% of Total
Liability
Metal Bank of AmericaPhiladelphia, PA1993EPA4.6%
Borne ChemicalElizabeth, NJ1997NJDEP2.3%
Ellis RoadJacksonville, FL2011EPA0.2%


Other Federal, State and Local Environmental Provisions
Toxic Substances Control Act
Virtually all electric utilities, including CECONY and O&R, own equipment containingthat 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.

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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.
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 the Clean Air Act and New York State law, certain of CECONY’s facilities qualify as major facilities that are required to obtain Clean Air Act Title V operating permits. Consistent with the governing regulations, CECONY applies to renew these permits prior to their expiration and seeks to modify them when needed.
Under new source review regulations, an owner of a large generatingmajor 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 generating 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 tradecap-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. In 2023, the EPA finalized an updated version of the Transport Rule (known as the Good Neighbor Rule) that includes a more recent federal ozone standard than the Transport Rule initially implemented. Since its promulgation, the Good Neighbor Rule has been the subject of litigation in the federal Circuit Courts of Appeals which have stayed its effectiveness in several states (but not New York State). Elements of this litigation are before the U.S. Supreme Court and the Circuit Courts of Appeals. 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 20172023 and expects to comply with the rule in 2018. If changes2024.

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
CON EDISON ANNUAL REPORT 202339


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 Transport Rule that have been proposed are adopted, the number of allowances allocated to CECONY would decrease and the company would be required to purchase allowances to offset the decreased allocation.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.
EmployeesHuman Capital
AtCon 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, 2017,2023, Con Edison and its subsidiaries had no14,592 employees, other than those of CECONY,based entirely in the United States including 13,416 at CECONY; 1,167 at O&R the Clean Energy Businesses and 9 at Con Edison Transmission (which had 14,010, 1,216, 356 and 9 employees, respectively).Transmission. Of the total CECONY and O&R employees, 8,2677,661 and 627603 employees, respectively, were represented by a collective bargaining unit. The collective bargaining agreement covering most of thesethe CECONY employees expires in June 2020.2024. Agreements covering other CECONY employees and O&R employees expire in June 20212025 and May 2019,2026, 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 2023 was approximately 6.7 percent, 31 percent of which is attributed to retirements. The average length of service is 13.4 years. Con Edison strives to have a diverse and inclusive workforce. A comprehensive diversity and inclusion strategy underlies the corporate culture; informing how its employees engage with one another, and setting the foundation for a respectful and inclusive environment. On December 31, 2023, women represented 23.2 percent of the total workforce and people of color represented 53.6 percent of the workforce, with ethnicity breaking down as follows: 46.4 percent White, 23.3 percent Black, 19.3 percent Hispanic, 9.8 percent Asian and 1.2 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 2023, employees spent over 680,000 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.

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

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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 theits impact. The Companies’ major risks include:

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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.orders or limit the Utilities from recovering costs incurred above amounts set forth in their rate plans. See “Other Regulatory Matters” in Note B to the financial statements in Item 8. 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 penaltiesnegative revenue adjustments for failing to meet certain operating and customer satisfaction standards. See Note B to the financial statements in Item 8. FERC has the authority to impose penalties on the Utilities and the Clean Energy Businesses,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 securitycybersecurity 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. In April 2014, the NYSPSC instituted its REV proceeding to improve system efficiency and reliability, encourage renewable energy resources, support distributed energy resources and empower customer choice. See “Utility Regulation”Regulation", "Competition" and “Environmental Matters – Climate ChangeChange" and "Environmental Matters - Other Federal, State and Local Environmental Provisions” in Item 1, and “Application of Critical“Critical Accounting Policies”Estimates” in Item 7.7 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 the rate plans. 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).incurred. 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 New York electric and gas rate plans include revenue decoupling mechanisms, CECONY’s current steam rate plan includes a weather normalization adjustment and theirthe Utilities' New York 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. Accounting credits for pension and other postretirement benefit plans could lead to a reduction in cash received from the Utilities’ revenue requirement. See “Rate Plans” and "Other Regulatory Matters" in Note B to the financial statements in Item 8.
The Intentional Misconduct of Employees or Contractors Could Adversely Affect the Companies.    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. Such intentional misconduct by employees or contractors could result in substantial liability, higher costs and increased regulatory requirements. See “Employees” in Item 1.
CON EDISON ANNUAL REPORT 202341



Operations Risks:
The Failure of, orOf, Or Damage to, theTo, The Companies’ Facilities Could Adversely Affect theThe 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. A natural disasterImpacts of climate change, such as a majorsea level rise, coastal storm asurge, inland flooding from intense rainfall, hurricane-strength winds and extreme heat wave or hurricanecold could impact or damage facilities or result in large-scale outages 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"Matters – Climate Change" in Item 1.



CON EDISON ANNUAL REPORT 201741


A Cyber Attack Could Adversely Affect theThe Companies.    The Companies and other operators of critical energy infrastructure and energy market participants face a heightened risk of cyber attack. Cyber attacks may include hacking, viruses, malware, denial of service attacks, ransomware or other data security breaches. The U.S. Department of Energy's Quadrennial Energy Review, issued in January 2017, indicated that cyber threats toattack and the electricity system are increasing in sophistication, magnitude and frequency. 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 and the techniques used in cyberattacks change rapidly, including from emerging technologies, such as artificial intelligence. 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 attack andincidents, including attacks. Such interconnectivity increases the risk that a cyber incident or attack on the Companies could affect others.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. In October 2023, threat actors exploited a vulnerability in Citrix NetScaler that was remediated and reported to the relevant regulatory authorities by the Companies. Also during 2023, the Companies experienced increases in malicious attempts to disrupt traffic to their websites and in attacks against third-party vendors employed by the Companies. The Companies have experienced cyber incidents and attacks althoughin the past and expect to experience them in the future. Although none of the attacksthese incidents has had a material impact.impact on the Companies, the scope and impact of any future incident cannot be predicted. In the event of a cybersecurity incident or attack that the Companies were unable to defend against or mitigate, the Companies’ business strategy, results of operations or financial condition are reasonably likely to be materially affected.

The Failure of Processes and Systems, the Failure to Retain and Attract Employees and Contractors, and Their Negative Performance 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. In October 2023, CECONY and O&R replaced their separate existing customer billing and information systems with a single new customer billing and information system to further automate the processes by which the Utilities bill their customers and enhance payment, credit and collections activities. 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. Many services, including certain information technology services and certain work on the Utilities’ electric and gas systems and CECONY’s steam system, are provided to the Companies by third-party contractors. The failure of the Companies’ or its contractors' business processes or information and 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 could result in substantial liability, higher costs, increased regulatory requirements and substantial penalties. 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

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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 toTo Risks From The Environmental Consequences Of Their Operations.    The Companies are exposed to risks relating to climate change and related matters. See “Environmental Matters – Climate Change” in Item 1.In 2023, CECONY and O&R each completed a climate change vulnerability study that evaluated their respective future climate change adaptation strategies and each developed a climate change resilience plan to address projected physical climate risks and outline resilience investments. CECONY may also be impacted by environmental regulations requiringregarding emissions reductions in air emissions. See “Environmental Matters – Other Federal, Statesuch as New York’s Climate Leadership and Local Environmental Provisions – Air Quality” in Item 1.Community Protection Act and New York City’s Climate Mobilization Act. 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. The Companies may also be adversely affected by developments to legal or public policy doctrines regarding cable that contains lead. See “Environmental Matters” in Item 1 and Note G to the financial statements in Item 8.

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 $27,700 million over the next five years. The Utilities use internally-generated funds, equity contributions from Con Edison, if any, and external borrowings to fund construction expenditures. Con Edison expects to finance its capital requirements primarily through internally generated funds, 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. An extreme cold weather event in December 2022 (Winter Storm Elliott) negatively impacted energy infrastructure in the northeastern United States, including the interstate natural gas system. During Winter Storm Elliott, CECONY faced low pressures on the interstate natural gas pipelines that it relies upon to deliver gas to its customers. Although CECONY maintained system pressure, the low pressure could have resulted in unprecedented large-scale gas outages within CECONY’s territory. CECONY estimates that, in the worst case, restoring gas service could have taken months in the event of a complete loss of the system. In addition, seethe event of a large-scale outage, the Utilities could be required to pay substantial amounts to restore service, compensate others for injury or death or other damages and settle any proceedings initiated by regulatory agencies. In November 2023, FERC, NERC and other regional entities issued recommendations to prevent a recurrence of the effects of Winter Storm Elliott, including establishing and monitoring cold weather reliability standards for interstate natural gas pipelines. Although the Utilities’ rate plans provide for recovery of purchased power costs, increases in electric and gas commodity prices may contribute to a slower recovery of cash from outstanding customer accounts receivable balances. See “Financial and Commodity Market Risks”Risks – Commodity Price Risk” in Item 7.
The Companies Have Substantial Unfunded Pension And Other Postretirement Benefit Liabilities.    The Utilities have substantial unfunded pension and other postretirement benefit liabilities. The Utilities expect to make substantial contributions to their pension and other postretirement benefit plans. 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 “Application of Critical Accounting Policies – 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.
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 stock 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 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 $9,500 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. The Clean Energy Businesses and Con Edison Transmission are investing in renewable generation and energy infrastructure projects that require funds in excess of those produced in the businesses. Con Edison expects to finance its capital requirements primarily through internally generated funds and the sale of its securities. 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.


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Other Risks:
ChangesThe Companies Face Risks Related To Tax Laws Could Adversely AffectHealth Epidemics And Other Outbreaks.   Pandemic illness could disrupt the Companies.  Changes to tax laws, regulations or interpretations thereof could have a material adverse impact on the Companies. The reduction in the federal corporate income tax rate to 21 percent under the TCJA is expected to result in decreased cash flowsUtilities' employees and contractors from operating activities,providing essential utility services and require increased cash flows from financing activities, for the Utilities as and when rates the Utilities charge their customers are adjusted to reflect the reduction. Depending on the extent of these changes in cash flows, the changes could adversely impact the Companies’ credit ratings. See “Capital RequirementsCompanies' liquidity, financial condition and Resources – Capital Resources” in Item 1, “Liquidity and Capital Resources – Cash Flows from Operating Activities” in Item 7, "Other Regulatory Matters" in Note B and Note L to the financial statements in Item 8.results of operations.


Other Risks:
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 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 the Clean Energy Businesses’ renewable and energy infrastructure projects 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. See “Utility Regulation – State Utility Regulation – New York Utility Industry – Reforming the"Con Edison Transmission," "Environmental Matters - Clean Energy Vision,”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. Geopolitical conflicts have also caused supply chain distributions and shortages. 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 may raise the Companies’ 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 influencesinfluence the demand for electricity, gas and steam service, and can affect the price of energy commodities. Terrorist or other physical attacks or acts of war could damage Companythe 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 1C: Cybersecurity
Cybersecurity Risk Management
The Companies have identified cybersecurity as a key enterprise risk. As operators of critical energy infrastructure, the Companies require the continuous operation of information systems and network infrastructure. Cybersecurity threats are assessed, identified and managed as part of the Companies’ corporate-wide Enterprise Risk Management (ERM) program. The ERM program establishes processes to identify emerging issues; monitor, assess and mitigate known risks; align risk exposure to organizational priorities; and inform business decisions and resource allocation. In accordance with the Companies’ ERM program, management has established a multidisciplinary cybersecurity team including personnel from the technology, operations, legal, compliance, and risk management departments that identifies, assesses and remediates cybersecurity risks.


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The Companies employ several processes to manage their cybersecurity risks, including, but not limited to, the following:

•Incident Detection and Prevention: The Companies deploy safeguards designed to protect their operational and information systems, the personal information of their customers and employees and other critical information from cybersecurity threats. These safeguards include, among other things, intrusion prevention and detection systems, anti-malware functionality and ongoing vulnerability assessments.
•Review and Assessment: The Companies assess the severity, likelihood and controllability of cybersecurity threats and consider risk outlook, recent external and internal cybersecurity events and audit findings to assess their overall cybersecurity risk management process. The Companies then use the findings from these assessments to inform cybersecurity risk mitigation activities, including long-term strategic and short-term tactical efforts, and capital allocation decisions.
•Independent Advisors: The Companies engage consultants to assess, identify and manage material risks from cybersecurity threats on a regular basis. The consultants are engaged to, among other things, assess the process by which cybersecurity threats are identified; provide incident response and forensic services; review and analyze cybersecurity controls and infrastructure; and provide threat emulation services.
•Third-Party Risk Assessments: The Companies’ vendors and suppliers participate in a third-party risk assessment to periodically validate such party’s profile across multiple risk domains. A cybersecurity risk assessment is performed by the Companies’ Information Technology department to assess the controls of high-risk third parties that, among other things, possess the Companies’ sensitive information and the personal information of their customers and employees.
•Disclosure Controls and Procedures: Management has developed protocols and procedures to share information regarding cybersecurity incidents with the Chief Information Security Officer, Chief Privacy Officer, the Companies’ Disclosure Committee and the Law Department to enable assessments related to disclosure and reporting obligations in compliance with federal and state cybersecurity and data privacy regulations.
•Incident Response: The Companies have established and maintain incident response plans that set forth procedures for their response to cybersecurity incidents and data breaches and test and evaluate such plans on an ongoing basis.
•Training and Compliance: The Companies train employees regularly on potential cybersecurity threats; perform drills; monitor network and computing systems; collaborate with government and industry partners on threat mitigation; and also collaborate with local, state and federal agencies and utility industry colleagues to identify and employ tools that seek to protect the Companies’ operational and information systems and the personal information of their customers and employees from cybersecurity threats.

The Companies have experienced cybersecurity incidents and attacks in the past and expect to experience them in the future. None of the incidents or attacks that the Companies experienced have had a material impact on the Companies’ business strategy, results of operations or financial condition. Although the Companies have established processes to assess, identify and manage cybersecurity risks, such processes do not provide absolute assurance against a cybersecurity attack that could materially impact the Companies. In the event of a cybersecurity incident or attack that the Companies were unable to defend against or mitigate, the Companies’ business strategy, results of operations or financial condition are reasonably likely to be materially affected. Such an incident could disrupt the Companies’ or their customers’ operations, cause damage to the Companies’ properties, financial and other information systems and network infrastructure and could result in the theft of the Companies’, their employees’ or customers’ information. See “A Cyber Attack Could Adversely Affect the Companies” in Item 1A.

Role of Management in Cybersecurity Risk Management
The Companies have established a cybersecurity team that manages the Companies’ cybersecurity risk. The cybersecurity team is led by the Chief Information Security Officer, a utility industry professional with over 20 years of experience in information technology, reliability and cybersecurity. The Chief Information Security Officer also leads collaborative efforts between the government and utility sector partners. The cybersecurity team reports to a multidisciplinary team of executives and senior officers including personnel from the technology and operations departments who are responsible for the review and approval of changes in cybersecurity risk assessment and have oversight of risk mitigation and monitoring strategies. The executive and senior officer teams are led by the Vice President, IT Engineering and Operations, an executive with over 25 years of experience in the utility field across various roles in the Information Technology department and who is accountable for the Companies’ information technology assets and the Senior Vice President, Corporate Shared Services, a senior executive with over 30 years of experience in the utility field and who is responsible for shared services functions including the information technology department.

The cybersecurity team’s processes to protect the personal information of the Companies’ customers and employees are supported by a privacy compliance team. The privacy compliance team is led by the Chief Privacy Officer, a professional with over 18 years of experience in data privacy risk and compliance and who is a Certified Information Privacy Professional and a Certified Information Privacy Manager and is designated as a Fellow in
CON EDISON ANNUAL REPORT 202345


Privacy. The Chief Privacy Officer reports to the Vice President and Chief Ethics and Compliance Officer, an attorney and executive who has over 25 years of experience in the legal, ethics, and compliance fields and is responsible for the company’s ethics and compliance program and department, including data privacy compliance. The Chief Ethics and Compliance Officer reports to the Senior Vice President and General Counsel, the Companies’ lead attorney and a senior executive with over 20 years of risk management, corporate governance and team leadership experience.

Role of Board of Directors and Board of Trustees in Cybersecurity Risk Management
Con Edison’s Board of Directors and CECONY’s Board of Trustees (collectively, the Board) and their respective Audit Committees provideoversight of cybersecurity risks. There is a process in place for the Board and the Audit Committee to receive information and ongoing updates from the Senior Vice President, Corporate Shared Services, regarding significant and potentially significant cybersecurity incidents and a range of cybersecurity metrics. The Board receives an annual presentation and report on cybersecurity risks from the Chief Information Security Officer that addresses various topics, such as recent developments, vulnerability assessments and third-party and independent reviews. The Audit Committee also meets annually with the Chief Information Security Officer in executive session, without management present. At each regular Board meeting, the Board reviews a cybersecurity dashboard prepared by the Chief Information Security Officer that includes updates on a range of cybersecurity metrics and topics. The Audit Committee oversees the ERM program and reviews more in-depth cybersecurity matters and risks on a semi-annual basis.


Item 2:    Properties
Con Edison
Con Edison has no significant properties other than those of the Utilities, the Clean Energy Businesses and Con Edison Transmission.Utilities.
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).







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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"Manhattan Explosion and Fire”Fire" in Note H to the financial statements in Item 8 and “Environmental Matters – CECONY – Superfund”CECONY” and “Environmental Matters – O&R – Superfund”&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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Information about our Executive Officers of the Registrant
The following table sets forth certain information about the executive officers of Con Edison as of February 15, 2018.2024. 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.

NameAge
NameAgeOffices and Positions During Past Five Years
John McAvoyTimothy P. Cawley57595/14
1/22 to present – -Chairman of the Board, President and Chief Executive Officer and Director of Con Edison, and Chairman of the Board, Chief Executive Officer and Trustee of CECONY
12/1320 to 4/1412/21 – President and Chief Executive Officer and Director of Con Edison and Chief Executive Officer and Trustee of CECONY
1/1318 to 11/1312/20 – President and Chief Executive Officer of O&RCECONY
Robert Hoglund56629/05 to present – Senior Vice President and Chief Financial Officer of Con Edison and CECONY
Timothy P. CawleyMatthew Ketschke53521/1821 to present – President of CECONY
12/1311/17 to 12/17 – President and Chief Executive Officer of O&R
11/13 – Senior Vice President of CECONY
12/12 to 10/1320 – Senior Vice President – Central Operations of CECONYCustomer Energy Solutions
Robert Sanchez525812/17 to present – President and Chief Executive Officer of O&R
11/17 – Senior Vice President of CECONY
9/16 to 10/17 – Senior Vice President – Corporate Shared Services of CECONY
Stuart Nachmias599/14 to 8/16 – Vice President – Brooklyn & Queens Electric Operations of CECONY
5/11 to 8/14 – Vice President – System & Transmission Operations of CECONY
Mark Noyes5312/161/20 to present – President and Chief Executive Officer of Con Edison Clean Energy Businesses, Inc.Transmission
5/1605/08 to present – President and Chief Executive Officer of Con Edison Solutions
10/15 to present – President and Chief Executive Officer of Con Edison Development and Con Edison Energy
10/14 to 9/15 – Senior Vice President and Chief Operating Officer of Con Edison Development and Con Edison Energy
3/09 to 9/1412/19 – Vice President of Con Edison DevelopmentEnergy Policy and Regulatory Affairs of CECONY
Joseph P. OatesDeneen L. Donnley56599/16 to present – President and Chief Executive Officer of Con Edison Transmission, Inc.
1/16 to 8/16 – President of Con Edison Transmission, Inc.
9/15 to 8/16 – Senior Vice President – Corporate Shared Services of CECONY
9/12 to 8/15 – Senior Vice President – Business Shared Services of CECONY
Elizabeth D. Moore635/1320 to present – Senior Vice President and General Counsel of Con Edison and CECONY
5/0910/19 to 4/1312/19 – General CounselSenior Vice President of Con Edison and CECONY
Frances A. Resheske9/15 to 10/19 – Executive Vice President, Chief Legal Officer and Corporate Secretary – USAA
Jennifer Hensley57452/029/22 to present – Senior Vice President – Corporate Affairs (formerly known as Public 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. Kelly495511/17 to present – Senior Vice President – Corporate Shared Services of CECONY
1/16 to 10/17 – Vice President – Gas Engineering
Nancy Shannon561/14 to 12/15 – Vice President – Construction
5/09 to 12/14 – General Manager – Construction
Saumil P. Shukla589/156/22 to present – Senior Vice President – Utility Shared Services of CECONY
10/146/18 to 8/155/22 – Vice President – Supply Chain (Shared Services)Human Resources
9/07 to 9/14 – Vice President – Steam Operations of CECONY
Robert Muccilo
Joseph Miller617/091/21 to present – Vice President and Controller of Con Edison and CECONY
11/091/21 to present – Chief Financial Officer and Controller of O&R
Yukari Saegusa509/168/06 to present12/20 – TreasurerAssistant Controller of Con Edison andCorporate Accounting of CECONY
8/16 to present – Vice President of Con Edison and CECONY
8/13 to present – Treasurer of O&R
3/13 to 7/16 – Director of Corporate Finance of CECONY
12/08 to 3/13 – Managing Director, Debt Capital Markets at Barclays Capital
Gurudatta Nadkarni521/08 to present – Vice President of Strategic Planning of CECONY


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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,Edison, are traded on the New York Stock Exchange.Exchange under the trading symbol "ED." As of January 31, 2018,2024, there were 44,76535,988 holders of record of Con Edison’s Common Shares.
The market price range for Con Edison’s Common Shares during 2016 and 2017, as reported in the consolidated reporting system, and the dividends paid by Con Edison paid quarterly dividends of 79 cents per Common Share in 20162022 and 2017 were as follows:

20162017

HighLow
Dividends
Paid
HighLowDividends
Paid
1st Quarter$77.02$63.47$0.67$78.98$72.13$0.69
2nd Quarter$80.44$70.31$0.67$85.13$77.14$0.69
3rd Quarter$81.88$72.93$0.67$86.16$80.02$0.69
4th Quarter$76.03$68.76$0.67$89.70$80.26$0.69
quarterly dividends of 81 cents per Common Share in 2023. On January 18, 2018,2024, Con Edison declared a quarterly dividend of 71.583 cents per Common Share. The first quarter 2018 dividend will be paidShare that is payable on MarchMarch 15, 2018.
2024. 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 2017,2023, the market price of Con Edison’s Common Shares increaseddecreased by 15.35.72 percent (from $73.68$95.31 at year-end 20162022 to $84.95$90.97 at year-end 2017)2023). By comparison, the S&P 500 Index increased 19.423.91 percent and the S&P 500 Utilities Index increased 8.3decreased 11.06 percent. The total return to Con Edison’s common shareholders during 2017,2023, including both price appreciation and investment of dividends, was 19.3(1.12) percent. By comparison, the total returns for the S&P 500 Index and the S&P 500 Utilities Index were 21.826.26 percent and 12.1(7.08) percent, respectively. For the five-year period 20132019 through 20172023 inclusive, Con Edison’s shareholders’ total return was 86.343.08 percent, compared with total returns for the S&P 500 Index and the S&P 500 Utilities Index of 108.1107.04 percent and 81.141.05 percent, respectively.



Graph.jpg
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Years Ended December 31,
Years Ended December 31,Years Ended December 31,
Company / Index201220132014201520162017Company / Index201820192020202120222023
Consolidated Edison, Inc.100.00103.79129.53131.36156.23186.34Consolidated Edison, Inc.100.00122.54101.72125.07144.65143.03
S&P 500 Index100.00132.39150.51152.59170.84208.14S&P 500 Index100.00131.49155.68200.37164.08207.21
S&P Utilities100.00113.21146.02138.95161.57181.13S&P Utilities100.00126.35126.96149.39151.73140.99
Based on $100 invested at December 31, 2012,2018, 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 2023


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 20162022 and 20172023 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:    Selected Financial Data[Reserved]
For selected financial data of Con Edison and CECONY, see “Introduction” appearing before Item 1 (which selected financial data is incorporated herein by reference).



CON EDISON ANNUAL REPORT 201720234749






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.

See "Item 7: Management's Discussion and Analysis of Financial Condition and Results of Operations," in Con Edison's and CECONY's combined Annual Report on Form 10-K for the year ended December 31, 2022, filed with the SEC on February 16, 2023, for a discussion of variance drivers for the year ended December 31, 2022, as compared to December 31, 2021.

Corporate Overview
Con Edison’s principal business operations are those of the Utilities.Utilities 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 New York State and northern New Jersey. Con Edison Transmission, through its subsidiaries, invests in electric transmission projects supporting Con Edison's business operations also include thoseeffort 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 New York, New England, the Mid-Atlantic states and the Midwest. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy BusinessesBusinesses. See Note W and Con Edison Transmission. See “The Utilities,” “Clean Energy Businesses” and "Con Edison Transmission"Note X to the financial statements in Item 1,8.

In addition to the risks and segment financial informationuncertainties described in Note NItem 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 “Resultsuncertainties to be important to understanding the Companies’ current and future financial condition.

Clean Energy Goals
The success of Operations,the Companies’ efforts to meet federal, state and city clean energy policy goals and the impact of energy consumers' efforts to meet 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 usage 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 aim to reduce the carbon intensity of the energy that is consumed. The Utilities’ and their regulators’ efforts to maintain electric reliability in their service territories as electric usage increases may also impact the Companies’ future financial condition. 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 maintain system reliability and manage service interruptions resulting from severe weather may impact the Companies’ future financial condition, results of operations and liquidity.

Aged Accounts Receivable Balances
At December 31, 2023, CECONY’s and O&R’s customer accounts receivables balances of $2,683 million and $95 million, respectively, included aged accounts receivables (balances outstanding in excess of 60 days) of $1,225 million and $21 million, respectively. In comparison, CECONY’s and O&R’s customer accounts receivable balances at February 28, 2020 were $1,322 million and $89 million, respectively, including aged accounts receivables of $408 million and $15 million, respectively. Prior to the start of the COVID-19 pandemic, the Utilities’ practice was to write off customer accounts receivables as uncollectible 90 days after the account is disconnected for non-payment or the account is closed during the collection process. Due to the COVID-19 pandemic, New York State enacted laws prohibiting New York utilities, including CECONY and O&R, from disconnecting residential customers and small business customers. The Utilities largely suspended service disconnections, certain collection notices, final bill collection agency activity, new late payment charges and certain other fees from March 2020 through December 2021. CECONY’s electric and gas rate plans include reconciliation of late payment charges (from January 1, 2023 through December 31, 2025) and write-offs of customer accounts receivable balances (from January 1, 2020

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CON EDISON ANNUAL REPORT 2023


through December 31, 2025) to amounts reflected in rates, with recovery/refund from or to customers via surcharge/sur-credit. CECONY's surcharge recoveries for late payment charges and write-offs of accounts receivable balances will, collectively, be subject to separate annual caps for electric and gas that produce no more than a half percent (0.5 percent) total customer bill impact per commodity (estimated for electric to be $57.3 million, $60.3 million, $62.6 million for 2023, 2024 and 2025, respectively, and for gas to be $14.8 million, $15.9 million and $16.8 million for 2023, 2024 and 2025, respectively). Amounts in excess of the surcharge caps will be deferred as a regulatory asset for recovery in CECONY’s next base rate cases. O&R’s 2022 - 2024 rate plans include reconciliation of late payment charges to amounts reflected in rates for years 2022 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. Although these regulatory mechanisms are in place, a continued slower recovery in cash of outstanding customer accounts receivable balances has impacted the Companies’ liquidity and may continue to impact liquidity. See “Liquidity and Capital Resources” and “Capital Requirements and Resources,” below. below and "Regulatory Matters – Rate Plans" and “COVID-19 Regulatory Matters” in Note B to the financial statements in Item 8.

Con Edison Transmission
Con Edison Transmission, through its New York Transco partnership and jointly with the New York Power Authority, is developing the Propel NY Energy transmission project that will deliver offshore wind energy from Long Island to New York City, Westchester County and the rest of New York State's high voltage power grid. Con Edison Transmission expects to continue to participate in competitive solicitations to develop additional electric projects. 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.

Certain financial data of Con Edison’s businesses are presented below:
For the Year Ended December 31, 2023At December 31, 2023
(Millions of Dollars,
except percentages)		Operating
Revenues		Net Income for
Common Stock		Assets
CECONY$13,47692 %$1,60664 %$61,60092 %
O&R1,0567 %964 %3,6756 %
Total Utilities14,53299 %1,70268 %65,27598 %
Clean Energy Businesses (a) (c)1291 %221 %—— %
Con Edison Transmission4— %371 %4141 %
Other (b)(2)— %75830 %6421 %
Total Con Edison$14,663100 %$2,519100 %$66,331100 %
(a)Net income for common stock from the Clean Energy Businesses for the year ended December 31, 2023 includes $2 million (after-tax) of the effects of HLBV accounting for tax equity investments in certain renewable electric projects and $(9) million of net after-tax mark-to-market effects. Depreciation and amortization expenses on their assets of $31 million (after-tax) were not recorded for the year ended December 31, 2023. See Note W and Note X to the financial statements in Item 8.
(b)Other includes the parent company, Con Edison’s tax equity investments, the deferred project held for sale and consolidation adjustments. Net income for common stock for the year ended December 31, 2023 includes an immaterial amount of income tax impact on the net after-tax mark-to-market effects. Net income for common stock for the year ended December 31, 2023 also includes $(11) million net of tax on the effects of HLBV accounting for tax equity investments in certain renewable electric projects. Net income for common stock for the year ended December 31, 2023 also includes $(14) million net of tax of transaction costs and other accruals related to the sale of the Clean Energy Businesses. Impact of the sale of the Clean Energy Businesses on the changes in state unitary tax apportionments (net of federal taxes) for the year ended December 31, 2023 includes $(7) million. Depreciation and amortization expenses on the assets of the Clean Energy Businesses assets of $(3) million (after-tax) were not recorded for the year ended December 31, 2023. Net income for common stock for the year ended December 31, 2023 includes $767 million (after-tax) for the gain on the sale of the Clean Energy Businesses. See Note W and Note X to the financial statements in Item 8.
(c)On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note W 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 is 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 applies to tax years beginning after December 31, 2022. Con Edison and CECONY were not subject to the CAMT in 2023 but are expected to be subject to the CAMT in subsequent years.
CON EDISON ANNUAL REPORT 202351


However, the provisions of the CAMT are not expected to have a material impact on the Companies’ financial position, results of operations or liquidity.

New York Legislation
In April 2021, New York passed a law that increased 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 reinstated the business capital tax at 0.1875 percent, not to exceed a maximum tax liability of $5 million per taxpayer. New York 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 were scheduled to expire after 2023. In May 2023, New York passed a law that extended the increase in the corporate franchise tax rate from 6.5 percent to 7.25 percent for an additional three years, through tax year 2026 and extended the business capital tax through tax year 2026. New York also passed a law establishing a permanent rate of 30 percent for the metropolitan transportation business tax surcharge. As a result of the sale of the Clean Energy Businesses in 2023, Con Edison has New York State taxable income in excess of $5 million after using its entire New York state net operating loss carryforward, and therefore, the group is subject to the higher 7.25 percent rate (9.425 percent with the surcharge rate) on its taxable income for tax year 2023. As a result of this legislation, CECONY remeasured its deferred tax assets and liabilities that would reverse before 2027 and recorded state deferred income tax expense (net of federal tax benefit) and an increase in accumulated deferred tax liabilities of $10 million for the year ended December 31, 2023, all of which was recorded in the second quarter of 2023.
 For the Year Ended December 31, 2017At December 31, 2017
(Millions of Dollars,
except percentages)
Operating
Revenues
 
Net
Income
 Assets 
CECONY$10,46887%$1,10472%$40,45184%
O&R8747%644%2,7736%
Total Utilities11,34294%1,16876%43,22490%
Clean Energy Businesses (a)(b)6946%33222%2,7356%
Con Edison Transmission (b)3—%443%1,2222%
Other (b)(c)(6)—%(19)(1)%9302%
Total Con Edison$12,033100%$1,525100%$48,111100%
(a)

52
Net income from the Clean Energy Businesses for the year ended December 31, 2017 includes $1 million net after-tax gain related to the sale of a development stage solar electric production project (see Note U to the financial statements in Item 8). Also includes for the year ended December 31, 2017, $1 million of net after-tax mark-to-market gain.CON EDISON ANNUAL REPORT 2023
(b)Upon enactment of the TCJA, Con Edison re-measured its deferred tax assets and liabilities based upon the 21 percent corporate income tax rate under the federal Tax Cuts and Jobs Act of 2017, as enacted on December 22, 2017 (TCJA). As a result, Con Edison decreased its net deferred tax liabilities by $5,312 million, recognized $259 million in net income, decreased its regulatory asset for future income tax by $1,250 million, decreased its regulatory asset for revenue taxes by $90 million and accrued a regulatory liability for future income tax of $3,713 million. The amount recognized in net income for the Clean Energy Businesses, Con Edison Transmission and the parent company was $269 million, $11 million and  $(21) million, respectively. See “Other Regulatory Matters” in Note B and Note L to the financial statements in Item 8.
(c)Other includes parent company and consolidation adjustments.



Results of Operations
Net income for common stock and earnings per share for the years ended December 31, 2017, 20162023, 2022 and 20152021 were as follows:
(Millions of Dollars,
except per share amounts)
Net Income for
Common Stock
Earnings per Share
  202320222021202320222021
CECONY$1,606$1,390$1,344$4.62 $3.92 $3.86 
O&R9688750.28 0.25 0.22 
Clean Energy Businesses (a)223822660.07 1.08 0.76 
Con Edison Transmission (b)37(1)(316)0.11 — (0.91)
Other (c)758(199)(23)2.17 (0.57)(0.07)
Con Edison (d)$2,519$1,660$1,346$7.25 $4.68 $3.86 
(Millions of Dollars,
except per share amounts)		Net IncomeEarnings per Share
  2017201620152017
2016
2015
CECONY$1,104$1,056$1,084
$3.59

$3.52

$3.70
O&R (a)6459520.21
0.20
0.18
Clean Energy Businesses (b)(c)332118591.08
0.39
0.20
Con Edison Transmission (c)4420—0.15
0.07
—
Other (c)(d)(19)(8)(2)(0.06)(0.03)(0.01)
Con Edison (e)$1,525$1,245$1,193
$4.97

$4.15

$4.07
(a)Includes $3 million or $0.01 a share of net loss in 2015 related to the impairment of certain assets held for sale (see Note U to the financial statements in Item 8).
(b)Includes $1 million or $0.00 a share of net after-tax gain on the sale of a solar electric production project in 2017 (see Note U to the financial statements in Item 8). Also includes $56 million or $0.19 a share of net gain related to the sale of the retail electric supply business and $(12) million or $(0.04) a share of net loss related to the goodwill impairment charge on two energy services companies in 2016 (see Notes U and K to the financial statements in Item 8). Includes $1 million or $0.00 a share, $3 million or $0.02 a share and $(73) million or $(0.25) a share of net after-tax mark-to-market gains/(losses) in 2017, 2016 and 2015, respectively.
(c)Upon enactment of the TCJA, Con Edison re-measured its deferred tax assets and liabilities based upon the 21 percent corporate income tax rate under TCJA. As a result, Con Edison decreased its net deferred tax liabilities by $5,312 million, recognized $259 million in net income, decreased its regulatory asset for future income tax by $1,250 million, decreased its regulatory asset for revenue taxes by $90 million and accrued a regulatory liability for future income tax of $3,713 million. The amount recognized in net income for the Clean Energy

48CON EDISON ANNUAL REPORT 2017



(a)Net income for common stock and earnings per share from the Clean Energy Businesses for the year ended December 31, 2023, 2022 and 2021 reflects $2 million or $0.01 a share (after-tax), $46 million or $0.14 a share (after-tax) and $107 million or $0.31 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 $(9) million or $(0.03) a share, $135 million or $0.38 a share and $40 million or $0.11 a share of net after-tax mark-to-market effects in 2023, 2022 and 2021, respectively. Depreciation and amortization expenses on their assets of $31 million or $0.08 a share (after-tax) and $46 million or $0.13 a share (after tax) were not recorded for the years ended December 31, 2023 and 2022, respectively. On March 1, 2023, Con Edison Transmission andcompleted the parent company was $269 million, $11 million and  $(21) million, respectively.sale of all of the stock of the Clean Energy Businesses. See “Other Regulatory Matters” in Note BW and Note LX to the financial statements in Item 8.
(d)Other includes parent company and consolidation adjustments.
(e)Earnings per share on a diluted basis were $4.94 a share, $4.12 a share and $4.05 a share in 2017, 2016 and 2015, respectively.
The Companies’ results 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 operationsa renewable electric project. See Note S to the financial statements in Item 8.
(b)    Net loss for 2017, as compared with 2016,common stock and earnings per share from Con Edison Transmission for 2016, as compared with 2015, reflectthe 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. See “Investment in Mountain Valley Pipeline, LLC (MVP)” in Note A to the financial statements in Item 8.
(c)    Other includes the parent company, Con Edison’s tax equity investments, the deferred project held for sale and consolidation adjustments. See Note X to the financial statements in Item 8. Net income for common stock and earnings per share for the year ended December 31, 2023 includes $(11) million or $(0.03) a share (after-tax) of income tax impact on the effects of HLBV accounting for tax equity investments in certain renewable electric projects and an immaterial amount or $0.00 a share of income tax impact on the net after-tax mark-to-market effects. Net income for common stock for the year ended December 31, 2023 also includes $(14) million and $(0.04) a share of transaction costs and other accruals related to the sale of the Clean Energy Businesses (net of tax). Impact of the sale of the Clean Energy Businesses on the changes in state unitary tax apportionments (net of federal taxes) is $(7 million) or $(0.02) per share. Depreciation and amortization expenses on the Utilities' rate plans and regulatory charges andassets of the impactClean Energy Businesses $(3) million or $(0.01) a share (after-tax) were not recorded for the year ended December 31, 2023. Net income for common stock for the year ended December 31, 2023 includes $767 million or $2.21 per share (after-tax) for the gain on the sale of weather on steam revenues. The results of operations also reflect income from renewable investments at the Clean Energy Businesses. The resultsSee Note W 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, 2022 includes $(4) million (after-tax) or $(0.02) a share (after-tax) of operationsincome tax impact on the effects of HLBV accounting for 2017, as compared with 2016, reflect income fromtax equity investments atin 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,Transmission. Net income for common stock for the year ended December 31, 2022 also includes $(35) million and for 2016, as compared with 2015, reflect higher electric retail gross profit at$(0.10) a share of transaction costs and other accruals related to the sale of the Clean Energy Businesses. OperationsBusinesses (net of tax). Impact of the sale of the Clean Energy Businesses on the remeasurement of deferred state taxes and maintenancevaluation allowance for deferred tax assets (net of federal taxes) is $(119 million) or $(0.33) per share. Depreciation and amortization expenses for CECONY for 2017, as compared with 2016, primarily reflect lower costs for pensions and other postretirement benefits. For 2016, as compared with 2015, operations and maintenance expenses reflect lower costs for uncollectible expenses; andon the assets of the Clean Energy Businesses $(4) million or $(0.01) a share (after-tax) were not recorded for the Utilities reflect lower surchargesyear ended December 31, 2022. See Note W and Note X to the financial statements in Item 8.

Net income for assessmentscommon stock and fees that are collected in revenues from customers. In addition,earnings per share for the Utilities' rate plans provideyear ended December 31, 2021 includes $(9) million (after-tax) or $(0.02) a share (after-tax) of income tax impact on the effects of HLBV accounting for revenues to cover expected changestax equity investments in certain operating costs including depreciation, property taxesrenewable electric projects and other$(3) million or $(0.01) a share of income tax matters.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 - 2021 Partial Impairment of Investment in Stagecoach Gas Services LLC (Stagecoach)” and "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 $7.21 a share, $4.66 a share and $3.85 a share in 2023, 2022 and 2021, respectively. See "Earnings Per Common Share" in Note A 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 2017common stock for the years ended December 31, 2023 as compared with 2016,2022, and 20162022 as compared with 2015, resulting from these and other major factors:2021.





CON EDISON ANNUAL REPORT 202353



Variation for the Year Ended December 31, 2023 vs. 2022
Net Income for Common Stock (Millions of Dollars)Earnings per Share
CECONY (a)
Electric base rate increase$277$0.78
Gas base rate increase660.19
Lower operation and maintenance expense from stock-based compensation, injuries and damages offset, in part, by higher health care costs170.05
Higher interest income100.03
Higher income from allowance for equity funds used during construction30.01
Higher interest expense(91)(0.26)
Higher electric and gas operations maintenance activities(46)(0.13)
Weather impact on steam revenues offset, in part, by the benefit from the new steam rate plan effective November 2023(12)(0.03)
Change in incentives earned under the electric and gas earnings adjustment mechanisms (EAMs)(8)(0.02)
Accretive effect of share repurchase—0.09
Other—(0.01)
Total CECONY2160.70
O&R (a)
Electric base rate increase70.02
Gas base rate increase40.01
Other(3)—
Total O&R80.03
Clean Energy Businesses (b)
Total Clean Energy Businesses(360)(1.01)
Con Edison Transmission
Higher investment income, primarily due to the recognition of allowance of funds used during construction from Mountain Valley Pipeline, LLC for 2023310.09
Remeasurement of deferred state taxes related to dispositions prior to 202240.01
Other30.01
Total Con Edison Transmission380.11
Other, including parent company expenses
Gain and other impacts related to the sale of the Clean Energy Businesses9032.58
Higher interest income primarily related to proceeds from sale of the Clean Energy Businesses180.05
Lower interest expense170.05
Net mark-to-market effects100.03
Remeasurement of deferred state tax related to dispositions prior to 202290.03
Production tax credit from deferred project70.01
Lower New York state capital taxes50.01
Accrued commitment to Consolidated Edison Foundation, Inc.(9)(0.03)
HLBV effects(7)(0.01)
Accretive effect of share repurchase—0.03
Other4(0.01)
Total Other, including parent company expenses9572.74
Total Reported (GAAP basis)$859$2.57
a.Under the revenue decoupling mechanisms in the Utilities’ New York 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. Effective November 1, 2023, revenues from CECONY’s steam sales are also subject to a weather normalization clause, as a result of which, delivery revenues reflect normal weather conditions during the heating season. 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. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses and therefore 2023 reflects the financial results for the two months ended February 2023.



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CON EDISON ANNUAL REPORT 2023





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$48$0.14
Higher gas rate base390.11
Lower costs related to winter storms and heat events260.08
Higher income from allowance for funds used during construction160.04
Lower health care and other employee benefits costs130.03
Weather impact on steam revenues60.02
Resumption of the billing of late payment charges and other fees to allowed rate plan levels(34)(0.10)
Lower incentives earned under the electric and gas earnings adjustment mechanisms (EAMs) and positive incentives(28)(0.08)
Higher stock-based compensation costs(18)(0.05)
Regulatory commission expense(11)(0.03)
Higher payroll taxes(4)(0.01)
Dilutive effect of stock issuances—(0.07)
Other(7)(0.02)
Total CECONY460.06
O&R (a)
Electric base rate increase160.04
Gas base rate increase80.02
Higher stock-based compensation costs(2)(0.01)
Other(9)(0.02)
Total O&R130.03
Clean Energy Businesses (b)
Higher wholesale revenue2070.59
Net mark-to-market effects950.27
Impact of the sale of the Clean Energy Businesses440.12
Loss from sale of a renewable electric project in 202130.01
Higher gas purchased for resale(135)(0.39)
HLBV effects(61)(0.17)
Higher operation and maintenance expense from engineering, procurement and construction of renewable electric projects(21)(0.06)
Higher cost from purchased power(5)(0.01)
Lower tax credits(4)(0.01)
Higher interest expense(3)(0.01)
Dilutive effect of stock issuances—(0.02)
Other(4)—
Total Clean Energy Businesses1160.32
Con Edison Transmission
Impairment loss related to investment in Mountain Valley Pipeline, LLC1680.48
Impairment loss related to investment in Stagecoach in 20211530.44
Impairment loss related to investment in Honeoye in 202150.02
Lower interest expense30.01
Lower investment income(14)(0.04)
Remeasurement of deferred state tax related to dispositions prior to 2022(4)(0.01)
Other40.01
Total Con Edison Transmission3150.91
Other, including parent company expenses
HLBV effects5—
Impact of the sale of the Clean Energy Businesses(158)(0.44)
CON EDISON ANNUAL REPORT 201720234955


    

Variation for the Years Ended December 31, 2017 vs. 2016

Earnings
per Share		Net Income
(Millions of Dollars)
CECONY (a)   
     Changes in rate plans and regulatory charges$0.47$143Reflects higher electric net base revenues of $0.10 a share resulting from the increased base rates under the company's new electric rate plan, higher gas net base revenues of $0.21 a share, growth in the number of gas customers of $0.05 a share, incentives earned under the Earnings Adjustment Mechanisms of $0.03 a share and the Energy Efficiency Portfolio Standard of $0.04 a share, a property tax refund incentive of $0.01 a share, lower retention of TCC auction proceeds of $(0.03) a share, and an increase to the regulatory reserve related to certain gas proceedings in 2016 of $0.03 a share.
     Weather impact on steam revenues0.026
     Operations and maintenance expenses0.3090Reflects lower pension and other postretirement benefits costs of $0.29 a share.
     Depreciation, property taxes and other tax matters(0.57)(170)Reflects higher depreciation and amortization expense of $(0.18) a share, property taxes of $(0.27) a share, and income taxes of $(0.12) a share.
     Other(0.15)(21)Includes the dilutive effect of Con Edison's stock issuances.
Total CECONY0.0748
 O&R (a)


     Changes in rate plans and regulatory charges0.0618Reflects higher electric and gas net base revenues of $0.01 and $0.04 a share, respectively.
     Operations and maintenance expenses(0.03)(9)Reflects higher pension costs.
     Depreciation, property taxes and other tax matters(0.03)(6)
  Other0.012Includes the dilutive effect of Con Edison's stock issuances.
Total O&R0.015
Clean Energy Businesses


     Operating revenues less energy costs0.3399Reflects revenues from the engineering, procurement and construction of Upton 2 and higher revenues from renewable electric production projects, lower revenues and energy costs resulting from the retail electric supply business that was sold in September 2016. Includes $0.01 a share net after-tax mark-to market gains in 2016. Substantially all the mark-to-market effects in the 2016 periods were related to the retail electric business sold in September 2016.
     Operations and maintenance expenses(0.30)(89)Reflects Upton 2 engineering, procurement and construction costs and higher energy service costs.
Depreciation(0.06)(19) 
Net interest expense(0.02)(5) 
Gain on sale of the Clean Energy Businesses' retail electric supply business in 20160.1956 
Goodwill impairment related to the Clean Energy Businesses' energy service business in 2016(0.04)(12) 
Gain on sale of the Clean Energy Businesses' solar electric production project—
(1) 
Enactment of the TCJA0.88269 
     Other(0.29)(84)Includes the dilutive effect of Con Edison's stock issuances.
Total Clean Energy Businesses0.69214
Con Edison Transmission0.0824Includes the effect of the TCJA of $0.04 a share. Reflects income from equity investments and the dilutive effect of Con Edison's stock issuances.
Other, including parent company expenses(0.03)(11)Includes the effect of the TCJA of $(0.07) a share. Reflects higher state income tax benefits and the dilutive effect of Con Edison's stock issuances.
Total$0.82$280
    
a.
Under the revenue decoupling mechanisms in the Utilities’ New York 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.



50CON EDISON ANNUAL REPORT 2017





Remeasurement of deferred state tax related to dispositions prior to 2022(9)(0.03)
Impact of net mark-to-market effects(7)(0.02)
Impairment related to investment in Stagecoach in 2021(6)(0.02)
Impairment related to investment in Mountain Valley Pipeline, LLC(6)(0.01)
Dilutive effect of stock issuances—0.01
Other50.01
Total Other, including parent company expenses(176)(0.50)
Total Reported (GAAP basis)$314$0.82
a.Under the revenue decoupling mechanisms in the Utilities’ New York 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. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses.

    
 Variation for the Years Ended December 31, 2016 vs. 2015
 Earnings
per Share		Net Income
(Millions of Dollars)		 
CECONY (a)   
     Changes in rate plans and regulatory charges$0.34$96Reflects higher electric, gas, and steam net base revenues of $0.07 a share, $0.11 a share, and $0.04 a share, respectively, lower regulatory reserves related to electric and steam earnings sharing of $0.10 a share, and an increase to the regulatory reserve related to certain gas proceedings of $(0.03) a share.
     Weather impact on steam revenues(0.07)(21) 
     Operations and maintenance expenses0.1545Reflects lower regulatory assessments and fees that are collected in revenues from customers.
     Depreciation, property taxes and other tax matters(0.43)(126)Reflects higher depreciation and amortization expense of $(0.14) a share, property taxes of $(0.19) a share, and income taxes of $(0.10) a share.
     Other(0.17)(22)Includes the dilutive effect of Con Edison's stock issuances.
Total CECONY(0.18)(28) 
O&R (a)   
     Changes in rate plans and regulatory charges—
1 
     Operations and maintenance expenses0.0619Reflects lower pension costs of $0.04 a share and higher operating costs of $(0.02) a share. Includes the charge-off of certain regulatory assets of $(0.04) a share in 2015.
     Depreciation, property taxes and other tax matters(0.03)(10)Reflects primarily higher property taxes of $(0.03) a share.
     Other(0.01)(3)Includes the impairment of certain assets held for sale in 2015 of $0.01 a share and the dilutive effect of Con Edison's stock issuances.
Total O&R0.027 
Clean Energy Businesses   
     Operating revenues less energy costs0.1443Reflects higher revenues from renewable electric production projects and energy services. Includes $0.01 a share net after-tax mark-to market gains in 2016. Substantially, all the mark-to-market effects in the 2016 periods were related to the retail electric business sold in September 2016.
Gain on sale of the Clean Energy Businesses'
 retail electric supply business
0.1956 
     Operations and maintenance expenses(0.06)(18)Reflects primarily higher energy service costs.
Net interest expense(0.05)(14) 
     Other(0.03)(8)Includes the dilutive effect of Con Edison's stock issuances.
Total Clean Energy Businesses0.1959 
Con Edison Transmission0.0720Reflects income from equity investments and the dilutive effect of Con Edison's stock issuances.
Other, including parent company expenses(0.02)(6)
Reflects primarily certain income tax benefits in 2015.

Total$0.0852 
    
a.
Under the revenue decoupling mechanisms in the Utilities’ New York 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 201751


The Companies’ other operations and maintenance expenses for the years ended December 31, 2017, 20162023, 2022 and 20152021 were as follows:
(Millions of Dollars)202320222021
CECONY
Operations (a)$1,845$1,639$1,617
Pensions and other postretirement benefits338415(42)
Health care and other benefits172155173
Regulatory fees and assessments (b)380354332
Other (a)441479372
Total CECONY3,1763,0422,452
O&R375351313
Clean Energy Businesses (c)48504475
Con Edison Transmission111319
Other (d)(4)(5)(5)
Total other operations and maintenance expenses$3,606$3,905$3,254
(Millions of Dollars)201720162015
CECONY   
Operations$1,528$1,477$1,464
Pensions and other postretirement benefits202348364
Health care and other benefits170160159
Regulatory fees and assessments (a)476469550
Other294352344
Total CECONY2,6702,8062,881
O&R316301333
Clean Energy Businesses313164134
Con Edison Transmission103—
Other (b)(6)(5)(4)
Total other operations and maintenance expenses$3,303$3,269$3,344
(a)Certain prior period amounts have been reclassified within the Companies' other operations and maintenance expenses to conform with current period presentation.
(a)Includes Demand Side Management, System Benefit Charges and Public Service Law 18A assessments which are collected in revenues.
(b)Includes parent company and consolidation adjustments.
(b)Includes Demand Side Management, System Benefit Charges and Public Service Law 18A assessments that are collected in revenues.
(c)On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note W and Note X to the financial statements in Item 8.
(d)Other includes the parent company, Con Edison’s tax equity investments, the deferred project held for sale and consolidation adjustments. See 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. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note W 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, 2017, 20162023, 2022 and 20152021 follows. For additional business segment financial information, see Note NP to the financial statements in Item 8.



52

56
CON EDISON ANNUAL REPORT 20172023





Year Ended December 31, 2017 Compared with Year Ended December 31, 2016
The Companies’ results of operations in 2017 compared with 2016for the years ended December 31, 2023, 2022 and 2021 were:
CECONYO&R
Clean Energy
 Businesses
Con Edison
Transmission		Other (a)Con Edison (b) CECONYO&RClean Energy (e)
 Businesses		Con Edison
Transmission		Other (a)Con Edison (b)
(Millions of Dollars)
Increases
(Decreases)
Amount
Increases
(Decreases)
Percent
Increases
(Decreases)
Amount
Increases
(Decreases)
Percent
Increases
(Decreases)
Amount
Increases
(Decreases)
Percent
Increases
(Decreases)
Amount		Increases
(Decreases)
Percent
Increases
(Decreases)
Amount
Increases
(Decreases)
Percent
Increases
(Decreases)
Amount
Increases
(Decreases)
Percent
(Millions of Dollars)202320222021202320222021202320222021202320222021202320222021202320222021
Operating revenues$3033.0 %$536.5 %$(397)(36.4)%$3— %$(4)Large
$(42)(0.3)%Operating revenues$13,476$13,268$11,716$1,056$1,085$941$129$1,319$1,022$4$4$(2)$(6)$(7)$14,663$15,670$13,676
Purchased power(153)(9.8)(6)(3.0)(677)Large
—
—
(2)—
(838)(34.4)Purchased power2,2942,2011,633247276206—7————(5)(4)2,5412,4791,835
Fuel4425.6
—
—
—
—
—
—
—
—
4425.6
Fuel282356229————————282356229
Gas purchased for resale19159.9
2655.3
114Large
—
—
—
—
33169.4
Gas purchased for resale677869541111135884124162————(1)8291,245690
Other operations and maintenance(136)(4.8)155.0
14990.9
7Large
(1)(20.0)341.0
Other operations and maintenance (c)Other operations and maintenance (c)3,1763,0422,45237535131348504475111319(4)(5)3,6063,9053,254
Depreciation and amortization898.0
46.0
3276.2
1—
(1)Large
12510.3
Depreciation and amortization1,9241,7781,7051069895—17823111—1—2,0312,0562,032
Taxes, other than income taxes1256.5
33.8
(4)(20.0)—
—
—
—
1246.1
Taxes, other than income taxes2,9462,8872,6969189321181—2873,0433,0052,810
Gain on sale of retail electric supply business (2016) and solar electric production project (2017)—
—
—
—
(103)(99.0)—
—
—
—
(103)(99.0)
Operating income1436.3
118.5
(114)(62.3)(5)Large
—
—
351.4
Other income less deductions7—
—
—
1150.0
3786.0
(3)Large
5281.3
Net interest expense203.3
—
—
926.5
10Large
(6)(35.3)334.7
Gain on sale of the Clean Energy BusinessesGain on sale of the Clean Energy Businesses———————865—865—
Operating income (loss)Operating income (loss)2,1772,1352,46012613615037368236(9)(10)(16)865(5)(4)3,1962,6242,826
Other income (deductions) (d)Other income (deductions) (d)732332(108)4923(12)13(10)6219(407)(14)(51)(1)830326(538)
Net interest expense (income)Net interest expense (income)94582276251464216(35)68259914241,023852905
Income before income tax expense1307.8
1111.6
(112)(65.5)2264.7
318.8
542.8
Income before income tax expense1,9641,6451,5901241139622406158514(432)842(70)(29)3,0032,0981,383
Income tax expense8213.6
616.7
(326)Large
(2)(14.3)14Large
(226)(32.4)
Net income$484.5 %$58.5%$214Large
$24Large
$(11)Large
$28022.5%
Income tax expense (benefit)Income tax expense (benefit)35825524628252138444145(114)84129(7)487498190
Net income (loss)Net income (loss)$1,606$1,390$1,344$96$88$75$19$322$114$37$(1)$(318)$758$(199)$(22)$2,516$1,600$1,193
Income (loss) attributable to non-controlling interestIncome (loss) attributable to non-controlling interest———(3)(60)(152)——(2)——1(3)(60)(153)
Net income (loss) from common stockNet income (loss) from common stock$1,606$1,390$1,344$96$88$75$22$382$266$37$(1)$(316)$758$(199)$(23)$2,519$1,660$1,346
(a) IncludesOther includes the parent company, Con Edison’s tax equity investments, the deferred project held for sale and consolidation adjustments. See Note X to the financial statements in Item 8.
(b) Represents the consolidated results of operations of Con Edison and its businesses.

(c) For the year ended December 31, 2021, Con Edison Transmission recorded a $5 million loss related to a goodwill impairment on its investment in Honeoye. See Note K to the financial statements in Item 8.

(d) For the year ended December 31, 2021, Con Edison Transmission recorded pre-tax impairment losses of $212 million ($147 million, after-tax) on its investment in Stagecoach and during 2021 completed the sale of its interest in Stagecoach. For the year ended December 31, 2021, Con Edison Transmission recorded a pre-tax impairment loss of $231 million ($162 million, after-tax), to reduce the carrying value of its investment in MVP from $342 million to $111 million. See “Investment in Mountain Valley Pipeline, LLC (MVP)” in Note A to the financial statements in Item 8.
(e) On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note W and Note X to the financial statements in Item 8.
CON EDISON ANNUAL REPORT 201720235357




Year Ended December 31, 2023 Compared with Year Ended December 31, 2022


CECONY
For the Year Ended December 31, 2017  For the Year Ended December 31, 2016   For the Year Ended December 31, 2023  For the Year Ended December 31, 2022  
(Millions of Dollars)Electric
Gas
Steam
2017 TotalElectric
Gas
Steam
2016 Total2017-2016 Variation(Millions of Dollars)ElectricGasSteam2023 TotalElectricGasSteam2022 Total2023-2022 Variation
Operating revenues$7,972$1,901$595$10,468$8,106$1,508$551$10,165$303Operating revenues$10,078$2,829$569$13,476$9,751$2,924$593$13,268$208
Purchased power1,379—
361,4151,533—
351,568(153)Purchased power2,254—402,2942,137—642,20193
Fuel127—
89216104—
6817244Fuel157—125282246—110356(74)
Gas purchased for resale—
510—
510—
319—
319191Gas purchased for resale—677—677—869—869(192)
Other operations and maintenance2,0544361802,6702,2104081882,806(136)Other operations and maintenance2,4175272313,1752,3734721973,042133
Depreciation and amortization925185851,195865159821,10689Depreciation and amortization1,3954291001,9241,315367961,778146
Taxes, other than income taxes1,6252981342,0571,5472651201,932125Taxes, other than income taxes2,2875141462,9472,1845561472,88760
Operating income$1,862$472$71$2,405$1,847$357$58$2,262$143Operating income$1,568$682$(73)$2,177$1,496$660$(21)$2,135$42
Electric
CECONY’s results of electric operations for the year ended December 31, 20172023 compared with the year ended December 31, 2016 is2022 were as follows:
For the Years Ended December 31, For the Years Ended December 31,
(Millions of Dollars)20172016Variation(Millions of Dollars)20232022Variation
Operating revenues$7,972$8,106$(134)Operating revenues$10,078$9,751$327
Purchased power1,3791,533(154)Purchased power2,2542,137117
Fuel12710423Fuel157246(89)
Other operations and maintenance2,0542,210(156)Other operations and maintenance2,4172,37344
Depreciation and amortization92586560Depreciation and amortization1,3951,31580
Taxes, other than income taxes1,6251,54778Taxes, other than income taxes2,2872,184103
Electric operating income$1,862$1,847$15Electric operating income$1,568$1,496$72
CECONY’s electric sales and deliveries in 20172023 compared with 20162022 were:
  Millions of kWh DeliveredRevenues in Millions (a)
  For the Years Ended  For the Years Ended  
DescriptionDecember 31, 2023December 31, 2022Variation
Percent
Variation
December 31, 2023December 31, 2022Variation
Percent
Variation
Residential/Religious (b)11,57411,875(301)(2.5)%$3,483$3,416$672.0 %
Commercial/Industrial10,89510,5223733.5 2,7732,740331.2 
Retail choice customers20,31521,116(801)(3.8)2,3942,526(132)(5.2)
NYPA, Municipal Agency and other sales9,4729,507(35)(0.4)807751567.5 
Other operating revenues (c)——— —62131830395.3 
Total52,25653,020(764)(1.4)%(d)$10,078$9,751$3273.4 %
  Millions of kWh Delivered Revenues in Millions (a)
  For the Years Ended   For the Years Ended  
DescriptionDecember 31, 2017
December 31, 2016
Variation
Percent
Variation

 December 31, 2017December 31, 2016Variation
Percent
Variation

Residential/Religious (b)9,924
10,400
(476)(4.6)% $2,515$2,591$(76)(2.9)%
Commercial/Industrial9,246
9,429
(183)(1.9) 1,8231,803201.1
Retail choice customers26,136
26,813
(677)(2.5) 2,7122,768(56)(2.0)
NYPA, Municipal Agency and other sales10,012
10,103
(91)(0.9) 633620132.1
Other operating revenues (c)—
—
—
—
 289324(35)(10.8)
Total55,318
56,745
(1,427)(2.5)%(d)$7,972$8,106$(134)(1.7)%
(a)Revenues from electric sales 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.
(a)Revenues from electric sales are subject to a revenue decoupling mechanism, as a result of which, delivery revenues generally are not affected by changes in delivery volumes from levels assumed when rates were approved.
(b)“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 regulatory assets and liabilities in accordance with the revenue decoupling mechanism and other provisions of the company’s rate plans. See Note B to the financial statements in Item 8.
(d)After adjusting for variations, primarily weather and billing days, electric delivery volumes in CECONY’s service area decreased 1.1 percent in 2017 compared with 2016.
(b)“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 CECONY’s rate plan.
(d)After adjusting for variations, primarily weather and billing days, electric delivery volumes in CECONY’s service area increased 0.7 percent in 2023 compared with 2022.
Operating revenues decreased $134 increased $327 million in 20172023 compared with 20162022 primarily due primarily to loweran increase in revenues from the electric rate plan ($374 million) and higher purchased power expenses ($154117 million), offset in part by lower fuel expenses ($89 million) and lower unbilled revenue accrual ($80 million).

Purchased power expenses increased $117 million in 2023 compared with 2022 due to higher unit costs ($163 million), offset in part by lower purchased volume ($46 million).

58
CON EDISON ANNUAL REPORT 2023


Fuel expenses decreased $89 million in 2023 compared with 2022 due to lower unit costs ($94 million), offset in part by higher fuelpurchased volumes from the company’s electric generating facilities ($5 million).
Other operations and maintenance expenses ($23 million).
Purchased power expenses decreased $154increased $44 million in 20172023 compared with 2016 due to lower unit costs ($86 million) and purchased volumes ($68 million).

54CON EDISON ANNUAL REPORT 2017



Fuel expenses increased $23 million in 2017 compared with 20162022 primarily due to higher unit costs.total surcharges for assessments and fees that are collected in revenues from customers ($21 million), higher electric operations maintenance activities ($13 million) and higher health care costs ($2 million).
Other operations
Depreciation and maintenance expenses decreased $156amortization increased $80 million in 20172023 compared with 20162022 primarily due primarily to lower costs for pension and other postretirement benefits ($126 million) and other employee benefits related to a rabbi trust ($22 million).
Depreciation and amortization increased $60 million in 2017 compared with 2016 due primarily to higher electric utility plant balances.
Taxes, other than income taxes increased $78$103 million in 20172023 compared with 20162022 primarily due primarily to higher property taxes ($97138 million), a higher deferral to levelize the customer bill impact of the electric rate plan ($15 million) and the absence in 2017 of a favorable state audit settlement in 2016higher payroll taxes ($56 million), offset in part by a lower deferral of under-collectedover-collected property taxes due to new property tax rates for fiscal year 2017 – 2018 ($21 million) and lower state and local taxes ($455 million).
Gas
CECONY’s results of gas operations for the year ended December 31, 20172023 compared with the year ended December 31, 2016 is2022 were as follows:
For the Years Ended December 31, For the Years Ended December 31,
(Millions of Dollars)20172016Variation(Millions of Dollars)20232022Variation
Operating revenues$1,901$1,508$393Operating revenues$2,829$2,924$(95)
Gas purchased for resale510319191Gas purchased for resale677869(192)
Other operations and maintenance43640828Other operations and maintenance52747255
Depreciation and amortization18515926Depreciation and amortization42936762
Taxes, other than income taxes29826533Taxes, other than income taxes514556(42)
Gas operating income$472$357$115Gas operating income$682$660$22
CECONY’s gas sales and deliveries, excluding off-system sales, in 20172023 compared with 20162022 were:
  Thousands of Dt Delivered Revenues in Millions (a)
  For the Years Ended  For the Years Ended  
DescriptionDecember 31, 2023December 31, 2022Variation
Percent
Variation
December 31, 2023December 31, 2022Variation
Percent
Variation
Residential45,741 51,580 (5,839)(11.3)%$1,218$1,272$(54)(4.2)%
General31,784 33,666 (1,882)(5.6)573578(5)(0.9)
Firm transportation72,740 75,172 (2,432)(3.2)853798556.9 
Total firm sales and transportation150,265 160,418 (10,153)(6.3)(b)$2,644$2,648$(4)(0.2)
Interruptible sales (c)7,892 6,098 1,794 29.4 %4951(2)(3.9)%
NYPA53,541 45,085 8,456 18.8 22——
Generation plants61,453 53,262 8,191 15.4 2430(6)(20.0)
Other18,925 19,186 (261)(1.4)3434——
Other operating revenues (d)— — — —76159(83)(52.2)
Total292,076 284,049 8,027 2.8 %$2,829$2,924$(95)(3.2)%
  Thousands of Dt Delivered Revenues in Millions (a)
  For the Years Ended   For the Years Ended  
DescriptionDecember 31, 2017
December 31, 2016
Variation
Percent
Variation

 December 31, 2017December 31, 2016Variation
Percent
Variation

Residential52,244
47,794
4,450
9.3% $802$667$13520.2 %
General30,761
28,098
2,663
9.5
 3342666825.6
Firm transportation71,353
68,442
2,911
4.3
 5244269823.0
Total firm sales and transportation154,358
144,334
10,024
6.9
(b) 1,6601,35930122.1
Interruptible sales (c)7,553
8,957
(1,404)(15.7) 353412.9
NYPA37,033
43,101
(6,068)(14.1) 22—
—
Generation plants61,800
87,835
(26,035)(29.6) 2525—
—
Other21,317
21,165
152
0.7
 3132(1)(3.1)
Other operating revenues (d)—
—
—
—
 1485692Large
Total282,061
305,392
(23,331)(7.6)% $1,901$1,508$39326.1 %
(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 transportation volumes in the company’s service area increased 5.9 percent in 2017 compared with 2016, reflecting primarily increased volumes attributable to the growth in the number of gas customers.
(c)Includes 3,816 thousands and 4,708 thousands of Dt for 2017 and 2016, respectively, which are also reflected in firm transportation and other.
(d)Other gas operating revenues generally reflect changes in regulatory assets and liabilities in accordance with the company’s rate plans. See Note B to the financial statements in Item 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 transportation volumes in CECONY’s service area increased 0.9 percent in 2023 compared with 2022.
(c)Includes 2,574 thousands and 2,015 thousands of Dt for 2023 and 2022, respectively, that are also reflected in firm transportation 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 CECONY’s rate plans.

Operating revenues increased $393 decreased $95 million in 20172023 compared with 20162022 primarily due primarily to increasedlower gas purchased for resale expense ($191192 million), offset in part by an increase in gas revenues under the company's gas rate plan ($89 million) and higher revenues from the gas rate plan and growth in the number of customersunbilled revenue accrual ($18213 million).
Gas purchased for resale increased $191 decreased $192 million in 20172023 compared with 20162022 due to higherlower purchased volumes ($152 million) and unit costs ($17640 million) and purchased volumes ($15 million).

CON EDISON ANNUAL REPORT 201720235559




Other operations and maintenance expenses increased $28$55 million in 20172023 compared with 20162022 primarily due primarily to higher pension and other postretirement benefitsgas operations costs ($12 million), health and life insurance expenses ($750 million) and surcharges for assessments and fees that are collected in revenues from customershigher municipal infrastructure support ($52 million).
Depreciation and amortization increased $26$62 million in 20172023 compared with 20162022 primarily due primarily to higher gas utility plant balances.
Taxes, other than income taxes increased $33 decreased $42 million in 20172023 compared with 20162022 primarily due primarily to highera lower deferral of over-collected property taxes ($25 million), state and local taxes ($735 million) and payroll taxesa lower deferral to levelize the customer bill impact of the gas rate plan ($451 million), offset in part by deferral of under-collectedhigher property taxes due to new property tax rates for fiscal year 2017 – 2018 ($441 million).
Steam
CECONY’s results of steam operations for the year ended December 31, 20172023 compared with the year ended December 31, 2016 is2022 were as follows:
For the Years Ended December 31, For the Years Ended December 31,
(Millions of Dollars)20172016Variation(Millions of Dollars)20232022Variation
Operating revenues$595$551$44Operating revenues$569$593$(24)
Purchased power36351Purchased power4064(24)
Fuel896821Fuel12511015
Other operations and maintenance180188(8)Other operations and maintenance23119734
Depreciation and amortization85823Depreciation and amortization100964
Taxes, other than income taxes13412014Taxes, other than income taxes146147(1)
Steam operating income$71$58$13Steam operating income$(73)$(21)$(52)
CECONY’s steam sales and deliveries in 20172023 compared with 20162022 were:
  Millions of Pounds DeliveredRevenues in Millions (a)
  For the Years Ended  For the Years Ended  
DescriptionDecember 31, 2023December 31, 2022Variation
Percent
Variation
December 31, 2023December 31, 2022Variation
Percent
Variation
General428 513 (85)(16.6)%$25$27$(2)(7.4)%
Apartment house4,657 5,122 (465)(9.1)150155(5)(3.2)
Annual power10,359 11,792 (1,433)(12.2)363391(28)(7.2)
Other operating revenues (b)— — — —31201155.0 
Total15,444 17,427 (1,983)(11.4)%(c)$569$593$(24)(4.0)%
  Millions of Pounds Delivered Revenues in Millions
  For the Years Ended   For the Years Ended  
DescriptionDecember 31, 2017
December 31, 2016
Variation
Percent
Variation

 December 31, 2017December 31, 2016Variation
Percent
Variation

General490
465
25
5.4% $26$23$313.0%
Apartment house5,754
5,792
(38)(0.7) 158148106.8
Annual power13,166
13,722
(556)(4.1) 392378143.7
Other operating revenues (a)—
—
—
—
 19217Large
Total19,410
19,979
(569)(2.8)%(b) $595$551$448.0%
(a)Effective November 1, 2023, revenues from steam sales are subject to a weather normalization clause, as a result of which, delivery revenues reflect normal weather conditions during the heating season.
(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 decreased 3.8 percent in 2017 compared with 2016.
(b)Other steam operating revenues generally reflect changes in regulatory assets and liabilities in accordance with CECONY’s rate plan.
(c)After adjusting for variations, primarily weather prior to November 1, 2023, and billing days, steam sales and deliveries in the company’s service area decreased 0.1 percent in 2023 compared with 2022.
Operating revenues increased $44 decreased $24 million in 20172023 compared with 20162022 primarily due primarily to lower purchased power expenses ($24 million) and the impact of milder than normal weather ($27 million), offset in part by higher fuel expenses ($2115 million), benefit from the weather impact on revenuesnew steam rate plan ($1011 million) and tax law sur-credit ($4 million).
Purchasedpower expenses decreased $24 million in 2023 compared with 2022 due to lower unit costs ($26 million), a property tax refund incentiveoffset in 2017part by higher purchased volumes ($52 million) and lower regulatory reserve related to steam earnings sharing ($3 million).
PurchasedpowerFuel expenses increased $1$15 million in 20172023 compared with 20162022 due to higher unit costs ($438 million), offset in part by lower purchased volumes from the company’s steam generating facilities ($323 million).
FuelOther operations and maintenance expenses increased $21$34 million in 20172023 compared with 20162022 primarily due to higher unit costs.
Othercosts for pension and other postretirement benefits, reflecting reconciliation to the rate plan level ($16 million), higher steam operations and maintenance expenses decreased $8 million in 2017 compared with 2016 due primarily to lower equipment maintenance expensesactivities ($69 million) and loweran increase in municipal infrastructure support costs ($25 million).
Depreciation and amortization increased $3$4 million in 20172023 compared with 20162022 primarily due primarily to higher steam utility plant balances.
Taxes, other than income taxes increased $14 million in 2017 compared with 2016 due primarily to higher property taxes ($13 million) and state and local taxes ($1 million).

56

60
CON EDISON ANNUAL REPORT 20172023





Taxes, Other Than Income Taxes
At $2,057$2,946 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:
For the Years Ended December 31,
(Millions of Dollars)20232022Variation
Property taxes$2,503$2,318$185
State and local taxes related to revenue receipts409411(2)
Payroll taxes77707
Other taxes(43)88(131)
Total$2,946(a)$2,887(a)$59
 For the Years Ended December 31, 
(Millions of Dollars)2017 2016 Variation
Property taxes$1,692 $1,557 $135
State and local taxes related to revenue receipts319 315 4
Payroll taxes67 65 2
Other taxes(21) (5) (16)
Total$2,057(a)$1,932(a)$125
(a)Including sales tax on customers’ bills, total taxes other than income taxes in 2023 and 2022 were $3,652 million and $3,548 million, respectively.
(a)Including sales tax on customers’ bills, total taxes other than income taxes in 2017 and 2016 were $2,495 and $2,358 million, respectively.


Other Income (Deductions)
Other income (deductions) increased $7$400 million in 20172023 compared with 20162022 primarily due primarily to an increase in investmentlower costs associated with components of pension and other income.postretirement benefits other than service cost ($370 million) and higher interest accrual from hedging activities ($4 million).
Net Interest Expense
Net interest expense increased $20$123 million in 20172023 compared with 20162022 primarily due primarily to higher interest expense for long-term debt balances in 2017.($79 million) and short-term debt ($42 million).
Income Tax Expense
Income taxes increased $82$103 million in 20172023 compared with 20162022 primarily due primarily to higher income before income tax expense ($5283 million), a remeasurement of state deferred tax assets and liabilities as a result of the enacted New York State legislation ($10 million), a decrease in tax benefits for plant-related flow through itemsthe amortization of excess deferred federal income taxes due to the TCJA ($35 million), lower research and development tax credits ($87 million) and a higher reserve for injuries and damages ($53 million), offset in part by lower state income taxes ($7 million) and higher tax credits included in Con Edison's filing of its 2016 consolidated federal tax return in September 2017 ($6 million).



O&R
For the Year Ended December 31, 2017  For the Year Ended December 31, 2016   For the Year Ended December 31, 2023  For the Year Ended December 31, 2022  
(Millions of Dollars)Electric
Gas
2017 TotalElectric
Gas
2016 Total
2017-2016
Variation
(Millions of Dollars)ElectricGas2023 TotalElectricGas2022 Total2023-2022
Variation
Operating revenues$642$232$874$637$184$821$53Operating revenues$759$297$1,056$773$312$1,085$(29)
Purchased power191—
191197—
197(6)Purchased power247— 247247276— 276276(29)
Gas purchased for resale—
7373—
474726Gas purchased for resale— 111111— 135135(24)
Other operations and maintenance247693162445730115Other operations and maintenance292833752757635124
Depreciation and amortization5120714918674Depreciation and amortization76301067127988
Taxes, other than income taxes5329825227793Taxes, other than income taxes5932915732892
Operating income$100$41$141$95$35$130$11Operating income$85$41$126$94$42$136$(10)
Electric
O&R’s results of electric operations for the year ended December 31, 20172023 compared with the year ended December 31, 2016 is2022 were as follows:
  For the Years Ended December 31,
(Millions of Dollars)20172016Variation
Operating revenues$642$637$5
Purchased power191197(6)
Other operations and maintenance2472443
Depreciation and amortization51492
Taxes, other than income taxes53521
Electric operating income$100$95$5



  For the Years Ended December 31,
(Millions of Dollars)20232022Variation
Operating revenues$759$773$(14)
Purchased power247276(29)
Other operations and maintenance29227517
Depreciation and amortization76715
Taxes, other than income taxes59572
Electric operating income$85$94$(9)
CON EDISON ANNUAL REPORT 201720235761




O&R’s electric sales and deliveries in 20172023 compared with 20162022 were:
  Millions of kWh Delivered Revenues in Millions (a)
  For the Years Ended   For the Years Ended  
DescriptionDecember 31, 2023December 31, 2022Variation
Percent
Variation
 December 31, 2023December 31, 2022Variation
Percent
Variation
Residential/Religious (b)1,917 1,916 1 0.1 %$419$413$61.5 %
Commercial/Industrial958 944 14 1.5 147147——
Retail choice customers2,397 2,580 (183)(7.1)172198(26)(13.1)
Public authorities113 113 — —1216(4)(25.0)
Other operating revenues (c)— — — —9(1)10Large
Total5,385 5,553 (168)(3.0)%(d)$759$773$(14)(1.8)%
  Millions of kWh Delivered Revenues in Millions (a)
  For the Years Ended   For the Years Ended  
DescriptionDecember 31, 2017
December 31, 2016
Variation
Percent
Variation

 December 31, 2017December 31, 2016Variation
Percent
Variation

Residential/Religious (b)1,567
1,654
(87)(5.3)% $311$304$72.3 %
Commercial/Industrial763
801
(38)(4.7) 113114(1)(0.9)
Retail choice customers2,976
3,180
(204)(6.4) 201213(12)(5.6)
Public authorities105
100
5
5.0
 98112.5
Other operating revenues (c)—
—
—
—
 8(2)10Large
Total5,411
5,735
(324)(5.6)%(d)$642$637$50.8 %
(a)O&R’s New York 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. The majority of O&R’s electric distribution revenues in New Jersey 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 New Jersey are not subject to a conservation incentive program, and as a result, changes in such volumes do impact revenues.
(a)O&R’s New York 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. O&R’s electric sales in New Jersey are not subject to a decoupling mechanism, and as a result, changes in such volumes do impact revenues.
(b)“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 regulatory assets and liabilities in accordance with the company’s electric rate plan. See Note B to the financial statements in Item 8.
(d)After adjusting for weather and other variations, electric delivery volumes in O&R’s service area decreased 2.2 percent in 2017 compared with 2016.
(b)“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 regulatory assets and liabilities in accordance with O&R’s electric rate plan.
(d)After adjusting for weather and other variations, electric delivery volumes O&R’s service area decreased 0.1 percent in 2023 compared with 2022.
Operating revenues increased $5decreased $14 million in 20172023 compared with 20162022 primarily due primarily to lower purchased power expenses ($29 million), offset in part by higher revenues from the New York electric rate plan ($1410 million) and RECO transmission rate reliefa change in incentives earned under the earnings adjustment mechanisms (EAMs) ($4 million).

Purchasedpower expenses decreased $29 million in 2023 compared with 2022 due to lower unit costs ($20 million) and purchased volumes ($9 million).

Other operations and maintenance expenses increased $17 million in 2023 compared with 2022 primarily due to higher administrative and general expenses ($6 million), higher tree trimming expenses ($3 million), higher uncollectible expenses ($2 million), offset in part by lower purchased power expenses ($6 million) and the absence of revenues in 2017 from Pike County Light & Power Company (Pike), which was sold in 2016 ($4 million).
Purchased power expenses decreased $6 million in 2017 compared with 2016 due to lower purchased volumes ($5 million) and unithigher customer assistance costs ($1 million).
Other operations and maintenance expenses increased $3 million in 2017 compared with 2016 due primarily to operating costs related to weather events in 2017 ($2 million) and higher surcharges for assessments and fees that are collected in revenues from customerspension costs, reflecting reconciliation to the rate plan level ($12 million).

Depreciation and amortization increased $2$5 million in 20172023 compared with 20162022 primarily due primarily to higher electric utility plant balances.
Taxes, other than income taxes increased $1 million in 2017 compared with 2016 due primarily to higher property taxes ($2 million), offset in part by lower state and local taxes ($1 million).
Gas
O&R’s results of gas operations for the year ended December 31, 20172023 compared with the year ended December 31, 2016 is2022 were as follows:
  For the Years Ended December 31,
(Millions of Dollars)20172016Variation
Operating revenues$232$184$48
Gas purchased for resale734726
Other operations and maintenance695712
Depreciation and amortization20182
Taxes, other than income taxes29272
Gas operating income$41$35$6





58CON EDISON ANNUAL REPORT 2017



  For the Years Ended December 31,
(Millions of Dollars)20232022Variation
Operating revenues$297$312$(15)
Gas purchased for resale111135(24)
Other operations and maintenance83767
Depreciation and amortization30273
Taxes, other than income taxes3232—
Gas operating income$41$42$(1)
O&R’s gas sales and deliveries, excluding off-system sales, in 20172023 compared with 20162022 were:
  Thousands of Dt Delivered Revenues in Millions (a)
  For the Years Ended   For the Years Ended  
DescriptionDecember 31, 2017
December 31, 2016
Variation
Percent
Variation
 December 31, 2017
December 31, 2016
Variation
Percent
Variation

Residential8,296
7,872
424
5.4 % $115$84$3136.9 %
General2,184
1,851
333
18.0
 2415960.0
Firm transportation9,873
10,381
(508)(4.9) 747045.7
Total firm sales and transportation20,353
20,104
249
1.2
(b) 2131694426.0
Interruptible sales3,771
3,853
(82)(2.1) 734Large
Generation plants9
18
(9)(50.0) —
—
—
—
Other896
867
29
3.3
 1—
1—
Other gas revenues—
—
—
—
 1112(1)(8.3)
Total25,029
24,842
187
0.8 % $232$184$4826.1 %
(a)

62
Revenues from New York 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.CON EDISON ANNUAL REPORT 2023
(b)After adjusting for weather and other variations, total firm sales and transportation volumes decreased 0.8 percent in 2017 compared with 2016.


  Thousands of Dt Delivered Revenues in Millions (a)
  For the Years Ended  For the Years Ended  
DescriptionDecember 31, 2023December 31, 2022VariationPercent
Variation		December 31, 2023December 31, 2022Variation
Percent
Variation
Residential11,428 12,588 (1,160)(9.2)%$193$207$(14)(6.8)%
General2,929 2,766 163 5.9 3738(1)(2.6)
Firm transportation5,055 6,396 (1,341)(21.0)3845(7)(15.6)
Total firm sales and transportation19,412 21,750 (2,338)(10.7)(b) 268290(22)(7.6)
Interruptible sales3,301 3,911 (610)(15.6)%66——
Generation plants4 10 (6)(60.0)————
Other334 673 (339)(50.4)11 — —
Other gas revenues— — — —2215746.7 
Total23,051 26,344 (3,293)(12.5)%$297$312$(15)(4.8)%
(a)Revenues from New York gas sales 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.
(b)After adjusting for weather and other variations, firm sales and transportation volumes in O&R’s service area remained consistent in 2023 compared with 2022.
Operating revenues increased $48 decreased $15 million in 20172023 compared with 20162022 primarily due primarily to the increase inlower gas purchased for resale ($2624 million) and, offset in part by higher revenues from the New York gas rate plan ($185 million).
Gas purchased for resale increased $26 decreased $24 million in 20172023 compared with 20162022 due to lower purchased volumes ($15 million) and unit cost ($9 million).

Other operations and maintenance expenses increased $7 million in 2023 compared with 2022 primarily due to higher purchased volumesadministrative and general expenses ($132 million), higher pension costs, reflecting reconciliation to the rate plan level ($2 million) and unit costshigher uncollectible expenses ($131 million).
Other operations
Depreciation and maintenance expensesamortization increased $12$3 million in 20172023 compared with 20162022 primarily due primarily to higher pension costs.
Depreciation and amortization increased $2 million in 2017 compared with 2016 due primarily to higher gas utility plant balances.
Taxes, other than income taxes increased $2 million in 2017 compared with 2016 due primarily to higher property taxes ($1 million) and state and local taxes ($1 million).
Taxes, Other Than Income Taxes
Taxes, other than income taxes, increased $3 millionremained consistent in 20172023 compared with 2016.2022. The principal components of taxes, other than income taxes, were:
For the Years Ended December 31,
(Millions of Dollars)20232022Variation
Property taxes$71$69$2
State and local taxes related to revenue receipts1112(1)
Payroll taxes981 
Total$91(a) $89(a) $2 
 For the Years Ended December 31,
(Millions of Dollars)2017 2016 Variation
Property taxes$66 $63 $3
State and local taxes related to revenue receipts9 10 (1)
Payroll taxes7 6 1
Total$82(a) $79(a) $3
(a)Including sales tax on customers’ bills, total taxes other than income taxes in 2023 and 2022 were $122 million and $131 million, respectively.
(a)Including sales tax on customers’ bills, total taxes other than income taxes in 2017 and 2016 were $109 million and $105 million, respectively.


Income Tax Expense
Income taxes increased $6$3 million in 20172023 compared with 2016 2022 primarily due primarily to higher income before income tax expense ($42 million) and a nonrecurringdecrease in the amortization of excess deferred federal income taxes due to the TCJA ($1 million).

Con Edison Transmission
Other Income (Deductions)
Other income increased $43 million in 2023 compared with 2022 primarily due to higher investment income from equity earnings from Con Edison Transmission’s proportionate share of its investments in New York Transco ($10 million) and MVP ($33 million).

Net Interest Expense
Net interest expense decreased $3 million in 2023 compared with 2022 primarily due to lower average balance on an intercompany loan.

Income Tax Expense
CON EDISON ANNUAL REPORT 202363


Income taxes increased $9 million in 2023 compared with 2022 primarily due to higher income before income tax benefitexpense ($9 million).

Other
Taxes, Other Than Income Taxes
Taxes, other than income taxesdecreased $6 million in 20162023 compared with 2022 primarily due to a decrease in the New York State Capital Tax ($7 million).

Other Income (Deductions)
Other deductions decreased $37 million in 2023 compared with 2022 primarily due to lower transaction costs at the parent company incurred from the sale of the Clean Energy Businesses ($37 million). See Note W and Note X to the financial statements in Item 8.

Income Tax Expense
Income taxes decreased $45 million in 2023 compared with 2022 primarily due to the recognition of unamortized investment tax credits ($106 million), a corporate-owned life insurance policyremeasurement of state deferred tax assets and liabilities ($142 million), both related to the sale of the Clean Energy Businesses, a decrease in the valuation allowance on state and local income tax assets ($10 million) and an increase in amortization of investment tax credits ($3 million), offset in part by an increase inhigher income before income tax benefits for plant-related flow through itemsexpense due to the sale of the Clean Energy Businesses ($1214 million) and a higher unitary state tax adjustment, net of federal benefit ($5 million).


CON EDISON ANNUAL REPORT 201759



Clean Energy Businesses
On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note W and Note X to the financial statements in Item 8. The Clean Energy Businesses’ results of operations for the year ended December 31, 20172023 (reflecting the two months ended February 2023) compared with the year ended December 31, 2016 is2022 were as follows:
  For the Years Ended December 31,
(Millions of Dollars)20232022Variation
Operating revenues$129$1,319$(1,190)
Purchased power—7(7)
Gas purchased for resale41241(200)
Other operations and maintenance48504(456)
Depreciation and amortization—178(178)
Taxes, other than income taxes321(18)
Operating income$37$368$(331)
  For the Years Ended December 31,
(Millions of Dollars)20172016Variation
Operating revenues$694$1,091$(397)
Purchased power(3)674(677)
Gas purchased for resale226112114
Other operations and maintenance313164149
Depreciation and amortization744232
Taxes, other than income taxes1620(4)
Gain on sale of retail electric supply business (2016) and solar electric production project (2017) (a)

1104103
Operating income$69$183$(114)

(a)Net Interest Expense
Net interest expense increased $51 million in 2023 compared with 2022 primarily due to lower unrealized gains on interest rate swaps in the 2023 period. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses and the impact on the 2023 period is shown through the date of sale. See note UNote W and Note X to the financial statements in Item 8.

Income Tax Expense
Income taxes decreased $81 million in 2023 compared with 2022 primarily due to lower income before income tax expense ($92 million), lower loss attributable to non-controlling interest ($15 million) and a lower reserve for uncertain tax positions ($5 million), offset in part by lower renewable energy tax credits ($30 million). On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses and the impact for the year ended December 31, 2023 is shown through the date of the sale. See Note W and Note X to the financial statements in Item 8.


Operating revenuesLoss Attributable to Non-Controlling Interest
Loss attributable to non-controlling interest decreased $397$57 million to a loss of $3 million in 20172023 compared with 2016 due2022 primarily to lower electric retail revenues of $778 million from the sale of the retail electric supply business in September 2016. Renewable revenues increased $229 million due primarily to an increase in renewable electric production projects in operation and revenues from the engineering, procurement and construction of Upton 2 (see Note U to the financial statements in Item 8). Energy services revenues increased $19 million. Wholesale revenues increased $128 million due to higher sales volumes. Net mark-to-market values decreased $6 million, of which $11 million in losses are reflected in purchased power costs and $5 million in gains are reflected in revenues.
Purchased power expenses decreased $677 million in 2017 compared with 2016 due primarily to lower electric costs due to thethe sale of the retail electric supply business in September 2016 ($687 million), offset by changes in mark-to-market values ($11 million).
Gas purchased for resale increased $114 million in 2017 compared with 2016 due to higher purchased volumes.
Other operations and maintenance expenses increased $149 million in 2017 compared with 2016 due to Upton 2 engineering, procurement and construction costs (see Note U to the financial statements in Item 8) and an increase in energy services costs.
Depreciation and amortization increased $32 million in 2017 compared with 2016 due to an increase in solar electric production projects in operation during 2017.
Taxes, other than income taxes decreased $4 million in 2017 compared with 2016 due to lower gross receipts tax from the sale of the retail electric supply business in September 2016.
Gain on sale of retail electric supply business decreased $103 million in 2017 reflecting the sale of the retail electric supply business in 2016 (see Note U to the financial statements in Item 8).
Other Income (Deductions)
Other income (deductions) increased $11 million in 2017 compared with 2016 due primarily to the impairment of goodwill in 2016 ($15 million) (see Note K to the financial statements in Item 8), offset in part by income from renewable electric production investments ($3 million).
Net Interest Expense
Net interest expense increased $9 million in 2017 compared with 2016 due primarily to increased debt on renewable electric production projects.

60CON EDISON ANNUAL REPORT 2017



Income Tax Expense
Income taxes decreased $326 million in 2017 compared with 2016 due primarily to lower income before income tax expense ($45 million), the re-measurement of the Clean Energy Businesses' deferred tax assets and liabilities based upon the 21 percent corporate income tax rate under the TCJA ($269 million), a higher favorable 2016 state return-to-provision adjustment recorded in 2017 ($7 million), higher renewable energy tax credits ($1 million) and the increase to deferred state income taxes in 2016 as a result of the sale of the retail electric supply business that increased the Clean Energy Businesses’ state apportionment factor on its cumulative temporary differences ($4 million), offset in part by an increase in valuation allowances against state net operating loss carryforwards ($3 million)Businesses. See Note L to the financial statements in Item 8.
Con Edison Transmission
Other operations and maintenance increased $7 million in 2017 compared with 2016 due primarily to CET having no employees or other direct costs until January 1, 2017.

Net Interest Expense
Net interest expense increased $10 million in 2017 compared with 2016 due primarily to an increased allocation from the parent company of interest expense resulting from a parent company debt issuance in May 2016.

Other Income (Deductions)
Other income (deductions) increased $37 million in 2017 compared with 2016 due primarily to earnings from equity investments in Stagecoach Gas Services, LLC, substantially all of which were made in June 2016.
Income Tax Expense
Income taxes decreased $2 million in 2017 compared with 2016 due primarily to the re-measurement of Con Edison Transmission's deferred tax assets and liabilities based upon the 21 percent corporate income tax rate under the TCJA ($11 million), offset in part by higher income before income tax expense ($9 million). See Note L to the financial statements in Item 8.
Other
For Con Edison, “Other” includes the increase in income tax expense resulting from the re-measurement of Con Edison's deferred tax assets and liabilities based upon the 21 percent corporate income tax rate under the TCJA ($21 million). See Note L to the financial statements in Item 8. "Other" also includes intercompany eliminations relating to operating revenues and operating expenses.



CON EDISON ANNUAL REPORT 201761

64


Year Ended December 31, 2016 Compared with Year Ended December 31, 2015
The Companies’ results of operations in 2016 compared with 2015 were:
  CECONYO&R
Clean Energy
 Businesses
Con Edison
Transmission		Other (a)Con Edison (b)
(Millions of Dollars)
Increases
(Decreases)
Amount
Increases
(Decreases)
Percent
Increases
(Decreases)
Amount
Increases
(Decreases)
Percent
Increases
(Decreases)
Amount
Increases
(Decreases)
Percent
Increases
(Decreases)
Amount		Increases
(Decreases)
Percent
Increases
(Decreases)
Amount
Increases
(Decreases)
Percent
Increases
(Decreases)
Amount
Increases
(Decreases)
Percent
Operating revenues$(163)(1.6)%$(24)(2.8)%$(292)(21.1)%
$—
—%
$—
—
$(479)(3.8)%
Purchased power(151)(8.8)(13)(6.2)(370)(35.4)—
—
—
—
(534)(18.0)
Fuel(76)(30.6)—
—
—
—
—
—
—
—
(76)(30.6)
Gas purchased for resale(18)(5.3)(4)(7.8)65.7
—
—
(2)Large
(18)(3.6)
Other operations and maintenance(75)(2.6)(32)(9.6)3022.4
3—
(1)(25.0)%(75)(2.2)
Depreciation and amortization666.3
(1)(1.5)2090.9
—
—
1—
867.6
Taxes, other than income taxes764.1
1727.4
15.3
—
—
—
—
944.9
Gain on sale of retail electric supply business—
—
—
—
104—
—
—
—
—
104—
Operating income150.7
97.4
125Large
(3)—
2Large
1486.1
Other income less deductions5Large
5Large
(12)(35.3)43—
(1)Large
40Large
Net interest expense193.3
12.9
23Large
6—
(6)(26.1)436.6
Income before income tax expense10.1
1315.9
90Large
34—
730.4
1458.1
Income tax expense295.1
620.0
31Large
14—
1361.9
9315.4
Net income$(28)(2.6)%$713.5%$59Large
$20—%$(6)Large
$524.4%

(a) Includes parent company and consolidation adjustments.
(b) Represents the consolidated results of operations of Con Edison and its businesses.


62CON EDISON ANNUAL REPORT 20172023



CECONY
  For the Year Ended December 31, 2016  For the Year Ended December 31, 2015    
(Millions of Dollars)Electric
Gas
Steam
2016 TotalElectric
Gas
Steam
2015 Total
2016-2015
Variation
Operating revenues$8,106$1,508$551$10,165$8,172$1,527$629$10,328$(163)
Purchased power1,533—
351,5681,684—
351,719(151)
Fuel104—
68172118—
130248(76)
Gas purchased for resale—
319—
319—
337—
337(18)
Other operations and maintenance2,2104081882,8062,2594401822,881(75)
Depreciation and amortization865159821,106820142781,04066
Taxes, other than income taxes1,5472651201,9321,4932521111,85676
Operating income$1,847$357$58$2,262$1,798$356$93$2,247$15
Electric
CECONY’s results of electric operations for the year ended December 31, 2016 compared with the year ended December 31, 2015 is as follows:
  For the Years Ended December 31,  
(Millions of Dollars)20162015Variation
Operating revenues$8,106$8,172$(66)
Purchased power1,5331,684(151)
Fuel104118(14)
Other operations and maintenance2,2102,259(49)
Depreciation and amortization86582045
Taxes, other than income taxes1,5471,49354
Electric operating income$1,847$1,798$49
CECONY’s electric sales and deliveries in 2016 compared with 2015 were:
  Millions of kWh Delivered Revenues in Millions (a)
  For the Years Ended   For the Years Ended  
DescriptionDecember 31, 2016
December 31, 2015
Variation
Percent
Variation

 December 31, 2016December 31, 2015Variation
Percent
Variation

Residential/Religious (b)10,400
10,543
(143)(1.4)% $2,591$2,771$(180)(6.5)%
Commercial/Industrial9,429
9,602
(173)(1.8) 1,8031,974(171)(8.7)
Retail choice customers26,813
26,662
151
0.6
 2,7682,714542.0
NYPA, Municipal Agency and other sales10,103
10,208
(105)(1.0) 62061281.3
Other operating revenues (c)—
—
—
—
 324101223Large
Total56,745
57,015
(270)(0.5)%(d)$8,106$8,172$(66)(0.8)%
(a)Revenues from electric sales are subject to a revenue decoupling mechanism, as a result of which, delivery revenues generally are not affected by changes in delivery volumes from levels assumed when rates were approved.
(b)“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 regulatory assets and liabilities in accordance with the revenue decoupling mechanism and other provisions of the company’s rate plans. See Note B to the financial statements in Item 8.
(d)After adjusting for variations, principally weather and billing days, electric delivery volumes in CECONY’s service area were the same in 2016 compared with 2015.
Operating revenues decreased $66 million in 2016 compared with 2015 due primarily to lower purchased power expenses ($151 million) and lower fuel expenses ($14 million), offset in part by higher revenues from the electric rate plan ($122 million) and changes in regulatory charges ($20 million).
Purchased power expenses decreased $151 million in 2016 compared with 2015 due to lower unit costs ($111 million) and purchased volumes ($40 million).

CON EDISON ANNUAL REPORT 201763




Fuel expenses decreased $14 million in 2016 compared with 2015 due to lower unit costs ($19 million), offset by higher sendout volumes from the company’s electric generating facilities ($5 million).
Other operations and maintenance expenses decreased $49 million in 2016 compared with 2015 due primarily to a decrease in the surcharges for assessments and fees that are collected in revenues from customers ($52 million) and lower uncollectible expense ($12 million), offset in part by higher costs for municipal infrastructure support ($8 million).
Depreciation and amortization increased $45 million in 2016 compared with 2015 due primarily to higher electric utility plant balances.
Taxes, other than income taxes increased $54 million in 2016 compared with 2015 due primarily to higher property taxes ($66 million), offset in part by lower state and local revenue taxes ($4 million), a favorable state audit settlement ($3 million), lower sales and use tax reserve based on a favorable audit settlement ($3 million) and lower payroll taxes ($2 million).
Gas
CECONY’s results of gas operations for the year ended December 31, 2016 compared with the year ended December 31, 2015 is as follows:
  For the Years Ended December 31,  
(Millions of Dollars)20162015Variation
Operating revenues$1,508$1,527$(19)
Gas purchased for resale319337(18)
Other operations and maintenance408440(32)
Depreciation and amortization15914217
Taxes, other than income taxes26525213
Gas operating income$357$356$1
CECONY’s gas sales and deliveries, excluding off-system sales, in 2016 compared with 2015 were:
  Thousands of Dt Delivered Revenues in Millions (a)
  For the Years Ended   For the Years Ended  
DescriptionDecember 31, 2016
December 31, 2015
Variation
Percent
Variation

 December 31, 2016December 31, 2015Variation
Percent
Variation

Residential47,794
49,024
(1,230)(2.5)% $667$682$(15)(2.2)%
General28,098
28,173
(75)(0.3) 266274(8)(2.9)
Firm transportation68,442
72,864
(4,422)(6.1) 426458(32)(7.0)
Total firm sales and transportation144,334
150,061
(5,727)(3.8)(b) 1,3591,414(55)(3.9)
Interruptible sales (c)8,957
6,332
2,625
41.5
 3446(12)(26.1)
NYPA43,101
44,038
(937)(2.1) 22—
—
Generation plants87,835
83,634
4,201
5.0
 2526(1)(3.8)
Other21,165
21,223
(58)(0.3) 3228414.3
Other operating revenues (d)—
—
—
—
 561145Large
Total305,392
305,288
104
— % $1,508$1,527$(19)(1.2)%
(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, principally weather and billing days, firm gas sales and transportation volumes in the company’s service area increased 3.9 percent in 2016 compared with 2015, reflecting primarily increased volumes attributable to additional customers that have converted from oil-to-gas as heating fuel for their buildings.
(c)Includes 4,708 thousands and 1,229 thousands of Dt for 2016 and 2015, respectively, which are also reflected in firm transportation and other.
(d)Other gas operating revenues generally reflect changes in regulatory assets and liabilities in accordance with the company’s rate plans. See Note B to the financial statements in Item 8.

Operating revenues decreased $19 million in 2016 compared with 2015 due primarily to lower gas purchased for resale expense ($18 million).

64CON EDISON ANNUAL REPORT 2017



Gas purchased for resale decreased $18 million in 2016 compared with 2015 due to lower unit costs ($32 million), offset by higher sendout volumes ($14 million).
Other operations and maintenance expenses decreased $32 million in 2016 compared with 2015 due primarily to a decrease in the surcharges for assessments and fees that are collected in revenues from customers ($25 million), lower gas operating costs ($10 million) and lower uncollectible expense ($2 million), offset in part by higher costs for municipal infrastructure support ($5 million).
Depreciation and amortization increased $17 million in 2016 compared with 2015 due primarily to higher gas utility plant balances.
Taxes, other than income taxes increased $13 million in 2016 compared with 2015 due primarily to higher property taxes ($16 million), offset in part by lower state and local revenue taxes ($2 million).
Steam
CECONY’s results of steam operations for the year ended December 31, 2016 compared with the year ended December 31, 2015 is as follows:
  For the Years Ended December 31,  
(Millions of Dollars)20162015Variation
Operating revenues$551$629$(78)
Purchased power3535—
Fuel68130(62)
Other operations and maintenance1881826
Depreciation and amortization82784
Taxes, other than income taxes1201119
Steam operating income$58$93$(35)
CECONY’s steam sales and deliveries in 2016 compared with 2015 were:
  Millions of Pounds Delivered Revenues in Millions
  For the Years Ended   For the Years Ended  
DescriptionDecember 31, 2016
December 31, 2015
Variation
Percent
Variation

 December 31, 2016December 31, 2015Variation
Percent
Variation

General465
538
(73)(13.6)% $23$29$(6)(20.7)%
Apartment house5,792
6,272
(480)(7.7) 148176(28)(15.9)
Annual power13,722
15,109
(1,387)(9.2) 378453(75)(16.6)
Other operating revenues (a)—
—
—
—
 2(29)31Large
Total19,979
21,919
(1,940)(8.9)%(b) $551$629$(78)(12.4)%
(a)Other steam operating revenues generally reflect changes in regulatory assets and liabilities in accordance with the company’s rate plans. See Note B to the financial statements in Item 8.
(b)After adjusting for variations, principally weather and billing days, steam sales and deliveries decreased 1.2 percent in 2016 compared with 2015.
Operating revenues decreased $78 million in 2016 compared with 2015 due primarily to lower fuel expenses ($62 million) and the weather impact on revenues ($35 million), offset in part by higher revenues from the steam rate plan ($22 million).
Fuel expenses decreased $62 million in 2016 compared with 2015 due to lower unit costs ($57 million) and sendout volumes ($5 million).
Other operations and maintenance expenses increased $6 million in 2016 compared with 2015 due primarily to higher costs for municipal infrastructure support.
Depreciation and amortization increased $4 million in 2016 compared with 2015 due primarily to higher steam utility plant balances.
Taxes, other than income taxes increased $9 million in 2016 compared with 2015 due primarily to higher property taxes ($12 million), offset in part by lower state and local revenue taxes ($2 million).

CON EDISON ANNUAL REPORT 201765


Taxes, Other Than Income Taxes
At $1,932 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:
 For the Years Ended December 31, 
(Millions of Dollars)2016 2015 Variation
Property taxes$1,557 $1,463 $94
State and local taxes related to revenue receipts315 323 (8)
Payroll taxes65 67 (2)
Other taxes(5) 3 (8)
Total$1,932(a)$1,856(a)$76
(a)Including sales tax on customers’ bills, total taxes other than income taxes in 2016 and 2015 were $2,358 million and $2,302 million, respectively.

Other Income (Deductions)
Other income (deductions) increased $5 million in 2016 compared with 2015 due primarily to an increase in the allowance for equity funds used during construction ($4 million).
Net Interest Expense
Net interest expense increased $19 million in 2016 compared with 2015 due primarily to new debt issuances in 2016.
Income Tax Expense
Income taxes increased $29 million in 2016 compared with 2015 due primarily to plant-related flow through items ($57 million) and an increase in uncertain tax positions ($2 million), offset in part by lower state income taxes ($15 million) and higher research and development tax credits ($14 million).
O&R
  For the Year Ended December 31, 2016  For the Year Ended December 31, 2015    
(Millions of Dollars)Electric
Gas
2016 TotalElectric
Gas
2015 Total
2016-2015
Variation
Operating revenues$637$184$821$663$182$845$(24)
Purchased power197—
197210—
210(13)
Gas purchased for resale—
4747—
5151(4)
Other operations and maintenance2445730125677333(32)
Depreciation and amortization491867501868(1)
Taxes, other than income taxes52277944186217
Operating income$95$35$130$103$18$121$9
Electric
O&R’s results of electric operations for the year ended December 31, 2016 compared with the year ended December 31, 2015 is as follows:
  For the Years Ended December 31,  
(Millions of Dollars)20162015Variation
Operating revenues$637$663$(26)
Purchased power197210(13)
Other operations and maintenance244256(12)
Depreciation and amortization4950(1)
Taxes, other than income taxes52448
Electric operating income$95$103$(8)

66CON EDISON ANNUAL REPORT 2017



O&R’s electric sales and deliveries in 2016 compared with 2015 were:
  Millions of kWh Delivered Revenues in Millions (a)
  For the Years Ended   For the Years Ended  
DescriptionDecember 31, 2016
December 31, 2015
Variation
Percent
Variation

 December 31, 2016December 31, 2015Variation
Percent
Variation

Residential/Religious (b)1,654
1,597
57
3.6% $304$307$(3)(1.0)%
Commercial/Industrial801
802
(1)(0.1) 114124(10)(8.1)
Retail choice customers3,180
3,237
(57)(1.8) 213213—
—
Public authorities100
100
—
—
 810(2)(20.0)
Other operating revenues (c)—
—
—
—
 (2)9(11)Large
Total5,735
5,736
(1)—%(d)$637$663$(26)(3.9)%
(a)O&R’s New York 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. O&R’s electric sales in New Jersey are not subject to a decoupling mechanism, and as a result, changes in such volumes do impact revenues.
(b)“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 regulatory assets and liabilities in accordance with the company’s electric rate plan. See Note B to the financial statements in Item 8.
(d)After adjusting for weather and other variations, electric delivery volumes in O&R’s service area decreased 0.9 percent in 2016 compared with 2015.
Operating revenues decreased $26 million in 2016 compared with 2015 due primarily to lower purchased power expenses ($13 million) and lower revenues from the New York electric rate plan (which includes the reconciliation of certain expenses, see Note B to the financial statements in Item 8) ($7 million).
Purchased power expenses decreased $13 million in 2016 compared with 2015 due to a decrease in unit costs ($18 million), offset by an increase in purchased volumes ($5 million).
Other operations and maintenance expenses decreased $12 million in 2016 compared with 2015 due primarily to regulatory accounting effects of pension costs ($11 million) and the charge-off of certain regulatory assets in 2015 ($4 million), offset by higher operating costs ($3 million).
Depreciation and amortization decreased $1 million in 2016 compared with 2015 due primarily to lower average depreciation rates.
Taxes, other than income taxes increased $8 million in 2016 compared with 2015 due primarily to higher property taxes.
Gas
O&R’s results of gas operations for the year ended December 31, 2016 compared with the year ended December 31, 2015 is as follows:
  For the Years Ended December 31,  
(Millions of Dollars)20162015Variation
Operating revenues$184$182$2
Gas purchased for resale4751(4)
Other operations and maintenance5777(20)
Depreciation and amortization1818—
Taxes, other than income taxes27189
Gas operating income$35$18$17

CON EDISON ANNUAL REPORT 201767


O&R’s gas sales and deliveries, excluding off-system sales, in 2016 compared with 2015 were:
  Thousands of Dt Delivered Revenues in Millions (a)
  For the Years Ended   For the Years Ended  
DescriptionDecember 31, 2016
December 31, 2015
Variation
Percent
Variation
 December 31, 2016
December 31, 2015
Variation
Percent
Variation

Residential7,872
7,664
208
2.7 % $84$77$79.1 %
General1,851
1,684
167
9.9
 151417.1
Firm transportation10,381
11,752
(1,371)(11.7) 706822.9
Total firm sales and transportation20,104
21,100
(996)(4.7)(b) 169159106.3
Interruptible sales3,853
4,205
(352)(8.4) 33—
—
Generation plants18
25
(7)(28.0) —
—
—
—
Other867
906
(39)(4.3) —
—
—
—
Other gas revenues—
—
—
—
 1220(8)(40.0)
Total24,842
26,236
(1,394)(5.3)% $184$182$21.1 %
(a)Revenues from New York 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, total firm sales and transportation volumes increased 2.3 percent in 2016 compared with 2015.
Operating revenues increased $2 million in 2016 compared with 2015 due primarily to higher revenues from the New York gas rate plan ($9 million), offset in part by the decrease in gas purchased for resale ($4 million).
Gas purchased for resale decreased $4 million in 2016 compared with 2015 due to a decrease in purchased volumes ($5 million), offset by an increase in unit costs ($1 million).
Other operations and maintenance expenses decreased $20 million in 2016 compared with 2015 due primarily to the charge-off of certain regulatory assets in 2015 ($14 million) and regulatory accounting effects of pension costs ($10 million), offset by higher operating costs ($4 million).
Taxes, other than income taxes increased $9 million in 2016 compared with 2015 due primarily to higher property taxes.
Taxes, Other Than Income Taxes
Taxes, other than income taxes, increased $17 million in 2016 compared with 2015. The principal components of taxes, other than income taxes, were:
 For the Years Ended December 31, 
(Millions of Dollars)2016 2015 Variation
Property taxes$63 $46 $17
State and local taxes related to revenue receipts10 10 —
Payroll taxes6 6 —
Total$79(a) $62(a) $17
(a)Including sales tax on customers’ bills, total taxes other than income taxes in 2016 and 2015 were $105 million and $88 million, respectively.

Other Income (Deductions)
Other income (deductions) increased $5 million in 2016 compared with 2015 due primarily to the impairment of certain assets held for sale in 2015 (see Note U to the financial statements in Item 8).
Income Tax Expense
Income taxes increased $6 million in 2016 compared with 2015 due primarily to higher income before income tax expense ($5 million) and plant-related flow through items ($3 million), offset in part by lower taxable reimbursement in insurance claims ($1 million) and a higher tax benefit from a corporate-owned life insurance policy ($1 million).


68CON EDISON ANNUAL REPORT 2017



Clean Energy Businesses
The Clean Energy Businesses’ results of operations for the year ended December 31, 2016 compared with the year ended December 31, 2015 is as follows:
  For the Years Ended December 31,  
(Millions of Dollars)20162015
Variation
Operating revenues$1,091$1,383$(292)
Purchased power6741,044(370)
Gas purchased for resale1121066
Other operations and maintenance16413430
Depreciation and amortization422220
Taxes, other than income taxes20191
Gain on sale of retail electric supply business104—
104
Operating income$183$58$125
Operating revenues decreased $292 million in 2016 compared with 2015 due primarily to lower electric retail revenues. Electric retail revenues decreased $389 million in 2016 as compared with 2015 due to the sale of the retail electric supply business (see Note U to the financial statements in Item 8). Solar revenues increased $54 million in 2016 as compared with 2015 due primarily to an increase in solar electric production projects in operation. Energy services revenues increased $41 million due to an increase in active projects. Wholesale revenues increased $8 million in 2016 compared with 2015 due primarily to higher sales volumes. Net mark-to-market values increased $6 million in 2016 as compared with 2015, of which $12 million in gains are reflected in purchased power expenses and $6 million in losses are reflected in revenues.
Purchased power expenses decreased $370 million in 2016 compared with 2015 due to the sale of the retail electric supply business ($373 million) (see Note U to the financial statements in Item 8) and changes in mark-to-market gains ($12 million).
Gas purchased for resale increased $6 million in 2016 compared with 2015 due primarily to higher sales volumes.
Other operations and maintenance expenses increased $30 million in 2016 compared with 2015 due primarily to an increase in energy services costs ($28 million) and other general operating expenses ($2 million).
Depreciation and amortization increased $20 million in 2016 compared with 2015 due primarily to an increase in renewable electric production projects in operation during 2016.
Taxes, other than income taxes increased $1 million in 2016 compared with 2015 due primarily to higher property taxes ($5 million), offset by lower gross receipt taxes ($4 million).
Gain on sale of retail electric supply business was $104 million in 2016 reflecting the sale of the retail electric supply business (see Note U to the financial statements in Item 8).
Other Income (Deductions)
Other income (deductions) decreased $12 million in 2016 compared with 2015 due primarily to the impairment of goodwill ($15 million) (see Note K to the financial statements in Item 8), offset in part by income from solar electric production investments ($3 million).
Net Interest Expense
Net interest expense increased $23 million in 2016 compared with 2015 due primarily to new debt issuances for renewable electric production projects.
Income Tax Expense
Income taxes increased $31 million in 2016 compared with 2015 due primarily to higher income before income tax expense ($38 million), an increase to deferred state income taxes as a result of the sale of the retail electric supply business ($4 million) and an increase in valuation allowances against state net operating loss carryforwards ($3 million), offset in part by higher production tax credits ($10 million) and the reversal of uncertain tax positions ($4 million).

CON EDISON ANNUAL REPORT 201769


Con Edison Transmission
Other Income (Deductions)
Other income (deductions) increased $43 million in 2016 compared with 2015 due primarily to earnings from equity investments in 2016 (see Note U to the financial statements in Item 8).
Income Tax Expense
Income taxes increased $14 million in 2016 compared with 2015 due primarily to higher income before income tax expense.

Other
For Con Edison, “Other” also includes intercompany eliminations relating to operating revenues and operating expenses.

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 the Utilitiesits 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 toTo Capital Markets toTo Satisfy Funding Requirements,” "Changes To Tax Laws Could Adversely Affect the Companies"Companies," “The Companies Face Risks Related to Health Epidemics And Other Outbreaks,” and “The Companies Also Face Other Risks That Are Beyond Their Control” in Item 1A, and “Capital Requirements and Resources” in Item 1.
Changes in the



CON EDISON ANNUAL REPORT 202365



The Companies’ cash, and temporary cash investments and restricted cash resulting from operating, investing and financing activities for the years ended December 31, 2017, 20162023, 2022 and 20152021 are summarized as follows:
  CECONYO&RClean Energy
 Businesses (d)		Con Edison
Transmission		Other (a)Con Edison (b)
(Millions of Dollars)202320222021202320222021202320222021202320222021202320222021202320222021
Operating activities$2,285$3,263$2,186$216$216$127$—$506$175$(137)$66$44$(208)$(116)$201$2,156$3,935$2,733
Investing activities(4,439)(3,926)(3,729)(301)(235)(224)(248)(339)(139)(49)(65)6084,034——(1,003)(4,565)(3,484)
Financing activities2,2367991,396732589—(97)(45)211(1)(652)(4,008)288(327)(1,488)1,014461
Net change for the period82136(147)(12)6(8)(248)70(9)25——(182)172(126)(335)384(290)
Balance at beginning of period1,0569201,067352937248178187———191191451,5301,1461,436
Balance at end of period (c)$1,138$1,056$920$23$35$29$—$248$178$25$—$—$9$191$19$1,195$1,530$1,146
Less: Change in cash balances held for sale (d)— — ——— ——248 — — — — 5— — 5 248 — 
Balance at end of period excluding held for sale$1,138$1,056$920$23$35$29$—$—$178$25 $—$— $4$191$19$1,190$1,282$1,146
(a) Other includes the parent company, Con Edison’s tax equity investments, the deferred project held for sale and consolidation adjustments. See Note X to the financial statements in Item 8.
(b) Represents the consolidated results of operations of Con Edison and its businesses.
(c) See "Reconciliation of Cash, Temporary Cash Investments and Restricted Cash" in Note A to the financial statements in Item 8.
(d) On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See in Note W and Note X to the financial statements in Item 8.



(Millions of Dollars)2017
2016Variance
2017 vs.
2016		2015Variance
2016 vs.
2015
Operating activities$3,367$3,459$(92)$3,277$182
Investing activities(3,703)(4,976)1,273(3,657)(1,319)
Financing activities3571,345(988)629716
Net change for the period21(172)193249(421)
Balance at beginning of period776944(168)699245
Balance at end of period79777225948(176)
Less: Change in cash balances held for sale—
(4)44(8)
Balance at end of period excluding held for sale$797$776$21$944$(168)

70

66
CON EDISON ANNUAL REPORT 20172023





CECONY
(Millions of Dollars)20172016Variance
2017 vs.
2016		2015Variance
2016 vs.
2015
Operating activities$2,866$3,038$(172)$2,819$219
Investing activities(3,078)(2,739)(339)(2,638)(101)
Financing activities240(440)68017(457)
Net change for the period28(141)169198(339)
Balance at beginning of period702843(141)645198
Balance at end of period$730$702$28$843$(141)
Cash Flows from Operating Activities
The Utilities’ cash flows from operating activities primarily reflect primarily their energy sales and deliveries and cost of operations. The volume of energy sales and deliveries is primarily affected primarily by factors external to the Utilities, such as growth of 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 "Utility Regulation – State Utility Regulation – New York Utility Industry – Reforming the Energy Vision," "Competition" and "Environmental Matters – Clean Energy Future" and “Environmental Matters – Climate Change"Change” in Item 1. Under the revenue decoupling mechanisms in the Utilities’ New York electric and gas rate plans, changes in delivery volumes from levels assumed when rates were approved may affect the timing of cash flows, but generally not net income. The prices at which the Utilities provide energy to their customers are determined in accordance with their rate plans. 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.

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, under the TCJA is expected to result in decreaseddecrease cash flows from operating activities as and when the ratesactivities. Pursuant to their rate plans, the Utilities charge theiralso 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 adjusted to reflect the reduction.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, “Other Regulatory Matters” in Note B and Note L to the financial statements in Item 8 and "Aged Accounts Receivable Balances," above.

On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note W and Note X to the financial statements in Item 8.

Net income is the result of cash and non-cash (or accrual) transactions. Onlytransactions. Only cash transactions affect the Companies’ cash flows from operating activities. Principal non-cash charges or credits include depreciation, deferred income tax expense, and amortizations of certain regulatory assets and liabilities.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’ New York electric and gas rate plans.plans. See “Rate Plans – CECONY– Electric and Gas" and "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.

Certain prior period amounts have been reclassified within the Companies' cash flows from operating activities to conform with current period presentation.

Net cash flows from operating activities in 20172023 for Con Edison and CECONY were $92 million and $172$1,779 million lower respectively, than in 2016.2022. The changechanges in net cash flows for Con Edison and CECONY reflects primarily higher cash paid for income taxes, net of refunds received, in 2017 as compared with 2016 of $151 million and $270 million, respectively. The income tax refund received in 2016 reflected the extension of bonus depreciation in late 2015, resulting in reflect:
•a refund of the 2015 estimated federal tax payments. See Note L to the financial statements in Item 8. The change in net cash flows for Con Edison and CECONY also reflects higher construction expendituresdecrease in accounts payable of $44 million($843 million);
•lower pensions and $56 million, respectively.retiree benefits obligations, net ($377 million);
•higher deferred charges, noncurrent assets, leases, net and other regulatory assets ($346 million); and
•lower deferred credits, noncurrent liabilities and other regulatory liabilities ($249 million).

Net cash flows from operating activities in 20162022 for Con Edison and CECONY were $182 million and $219$1,202 million higher respectively, than in 2015.2021. The increasechanges in net cash flows for Con Edison primarily reflect:
•an increase in accounts payable ($514 million);
•lower pension and retiree benefit contributions ($433 million);
•lower other receivables and other current assets ($136 million);
•lower revenue decoupling mechanism receivable ($79); and
•lower prepayments ($50 million).

Net cash flows from operating activities in 2023 for CECONY reflectswere $978 million lower than in 2022. The changes in net cash flows for CECONY primarily reflect:
•a decrease in accounts payable ($459 million);
•higher deferred charges, noncurrent assets, leases, net and other regulatory assets ($306 million); and
•higher other receivables and other current assets ($247 million).

Net cash flows from operating activities in 2022 for CECONY were $1,077 million higher than in 2021. The changes in net cash flows for CECONY primarily reflect:
•an increase in accounts payable ($257 million);
•lower income taxes paid, net of refunds received in 2016 as compared with 2015pension and retiree benefit contributions ($144 million407 million);
•lower other receivables and $325 million, respectively), offset by higher interest paymentsother current assets ($67 million272 million);
•lower revenue decoupling mechanism receivable ($89); and $27 million, respectively) in 2016. The amount and timing of income tax payments and refunds received reflect, among other things, the extension of bonus depreciation tax provisions. See Note L to the financial statements in Item 8.
CON EDISON ANNUAL REPORT 202367


•lower prepayments ($42 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.

CON EDISON ANNUAL REPORT 201771


Cash Flows Used in Investing Activities
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 an allowance for funds used during construction (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 $1,273$3,562 million lower and $339 million higher, respectively, in 20172023 than in 2016.2022. The change for Con Edison reflects primarily lower new investments in electricreflects:
•the proceeds from the sale of the Clean Energy Businesses, net of cash and gas transmission projectscash equivalents sold ($1,0313,927 million) and renewable electric production projects ($357 million) and a decrease in;
•lower non-utility construction expenditures ($430203 million),; offset in part by, lower proceeds from the sale and transfer of assets ($340 million) and increased
•higher utility construction expenditures ($193529 million). The change for CECONY primarily reflects increased utility construction expenditures ($168 million) and the absence of proceeds from the transfer of assets to NY Transco in 2016 ($122 million).

Net cash flows used in investing activities for Con Edison and CECONY were $1,319 million and $101$1,081 million higher respectively, in 20162022 than in 2015.2021. The change for Con Edison reflects primarily increased investments in electric and gas transmission projects ($1,076 million), increased utility construction expenditures in 2016 ($273 million) and increased non-utility construction expenditures related to development of renewable electric production projects ($353 million), offset in part by reflects:
•the proceeds from the completion of the sale and transfer of assetsStagecoach in 2021 ($374629 million);
•higher utility construction expenditures ($194 million); and
•the proceeds from the divestiture of renewable electric projects at the Clean Energy Businesses in 2021 ($183 million).

Net cash flows used in investing activities for CECONY were $513 million higher in 2023 than in 2022. The change for CECONY reflects primarily increasedreflects:
•an increase in utility construction expenditures ($463 million); and
•an increase in 2016cost of removal less salvage ($26250 million), offset.

Net cash flows used in part by the proceeds from the transfer of assets to NY Transcoinvesting activities for CECONY were $197 million higher in 2022 than in 2021. The change for CECONY primarily reflects:
•an increase in utility construction expenditures ($122183 million).

Cash Flows From Financing Activities
Net cash flows from financing activities in 20172023 for Con Edison and CECONY were $988$2,502 million lower and $680$1,437 million higher, respectively, than in 2016.2022. Net cash flows from financing activities in 20162022 for Con Edison and CECONY were $716$553 million higher and $457$597 million lower, respectively, than in 2015.2021.

Net cash flows from financing activities during the years ended December 31, 20172023, 2022 and 20162021 reflect the following Con Edison transactions:
2017

68
CON EDISON ANNUAL REPORT 2023


2023
•In January, entered into and borrowed $200 million under a 364-Day Senior Unsecured Term Loan Credit Agreement, that was repaid in March 2023, the proceeds from which were used for general corporate purposes;
•In March, entered into accelerated share repurchase agreements with two dealers to repurchase $1,000 million in aggregate of Con Edison’s Common Shares. Con Edison made payments of $1,000 million in aggregate to the dealers and received deliveries of 10,543,263 Common Shares in aggregate; and
•In December, redeemed at maturity $650 million of 0.65 percent senior unsecured notes.

2022
•Entered into and borrowed $400 million under a 364-Day Senior Unsecured Term Loan Credit Agreement, that was repaid in March 2023, the proceeds from which were used for general corporate purposes; and
•Redeemed at maturity $293 million of 8.71 percent senior unsecured notes.

2021
•Issued 4.1 million10,100,000 shares of its common sharesstock resulting in net proceeds of $343approximately $775 million, after issuance expenses, thatexpenses. The net proceeds from the sale of the common shares were invested by Con Edison in its subsidiaries, principally CECONY, and the Clean Energy Businesses, for funding of theirits construction expenditures and for its other general corporate purposes; and
Issued $400•Redeemed at maturity $500 million aggregate principal amount of 2.00 percent 5-year debentures due 2020,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 June 2016 $400remaining $675 million variable rateoutstanding under a February 2019 term loan that wasprior to matureits maturity in 2018.June 2021.


2016
Issued approximately 10 million common shares resulting in net proceeds of $702 million, after issuance expenses, and $500 million aggregate principal amount of 2.00 percent debentures, due 2021, the net proceeds from the sale of which were used in connection with the acquisition by a CET Gas subsidiary of a 50 percent equity interest in Stagecoach, a gas pipeline and storage joint venture (see "Con Edison Transmission" in Item 1), and for general corporate purposes.

Con Edison had no issuances of long-term debt in 2015.

Con Edison’s cash flows from financing activities in 2017, 20162023, 2022 and 20152021 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 $97$87 million, $97$88 million and $29$109 million, respectively,respectively.

Con Edison’s cash flows from financing activities for the year ended December 31, 2023 also reflects retirement of short-term debt of $752 million compared with a net issuance of repurchases$1,702 million in 2015.

the 2022 period and retirement of short-term debt of $382 million in the 2021 period.
Net cash flows from financing activities during the years ended December 31, 2017, 20162023, 2022 and 20152021 reflect the following CECONY transactions:
20172023
Issued $350 million aggregate principal amount of 3.125 percent debentures, due 2027, $350 million aggregate principal amount of 4.00 percent debentures, due 2057, and•In February, issued $500 million aggregate principal amount of 3.8755.20 percent debentures, due 2047, the net proceeds from the sales of which were used to repay short-term borrowings and for other general corporate purposes.






72CON EDISON ANNUAL REPORT 2017



2016
Issued $250 million aggregate principal amount of 2.90 percent debentures, due 2026, $500 million aggregate principal amount of 4.30 percent debentures, due 2056, and $550 million aggregate principal amount of 3.85 percent debentures, due 2046, the net proceeds from the sales of which were used to repay short-term borrowings and for other general corporate purposes;
Redeemed at maturity $400 million of 5.50 percent 10-year debentures; and
Redeemed at maturity $250 million of 5.30 percent 10-year debentures.

2015
Issued $650 million aggregate principal amount of 4.50 percent debentures, due 2045,2033, the net proceeds from the sale of which were used to repay short-term borrowings and for other general corporate purposes; and
Redeemed at maturity $350 million of 5.375 percent 10-year debentures.
Con Edison's net cash flows from financing activities during the years ended December 31, 2016 and 2015 also reflect the following O&R transactions:
O&R had no issuances of long-term debt in 2017.

2016
Issued $75•In November, issued $600 million aggregate principal amount of 3.885.50 percent debentures, due 2046,2034 and $900 million aggregate principal amount of 5.90 percent debentures, due 2053, the net proceeds from the sale of which were used to repay short-term borrowings;borrowings and for other general corporate purposes.
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
Redeemed at•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 $75date 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.
CON EDISON ANNUAL REPORT 202369



CECONY’s cash flows from financing activities for the year ended December 31, 2023 also reflects retirement of short-term debt of $397 million compared with a net issuance of 5.45$939 million in the 2022 period and retirement of short-term debt of $299 million in the 2021 period.

CECONY’s cash flows from financing activities also reflects capital contributions from the parent of $1,720 million, $150 million and $1,100 million for the years ended December 31, 2023, 2022 and 2021, respectively.

Net cash flows from financing activities during the years ended December 31, 2023, 2022 and 2021 also reflect the following O&R transactions:

2023
•In December, issued $50 million aggregate principal amount of 6.59 percent 10-year debentures.debentures, due 2053, the net proceeds from the sale of which were used to repay short-term borrowings and for other general corporate purposes.


20152022
•Issued $100 million aggregate principal amount of 4.695.70 percent debentures, due 2045,2032, the net proceeds from the sale of which were used to repay short-term borrowings and $120for other general corporate purposes.

2021
•Issued $45 million aggregate principal amount of 4.952.31 percent debentures, due 2045,2031 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;purposes.
Redeemed at maturity $40 million
On March 1, 2023, Con Edison completed the sale of 5.30 percent 10-year debentures;
Redeemed at maturity $55 millionall of 2.50 percent 5-year debentures;the stock of the Clean Energy Businesses. See Note W and
Redeemed at maturity $44 million of variable rate tax-exempt 20-year debt.

Con Edison's net Note X to the financial statements in Item 8. Net cash flows from financing activities during the years ended December 31, 2017, 20162022 and 20152021 also reflect the following Clean Energy Businesses transactions:
2017
2022
•Entered into and borrowed $150 million under a 364-Day Senior Unsecured Term Loan Credit Agreement guaranteed by Con Edison, that was repaid in March 2023, 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;
•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 $97$229 million aggregate principal amount of 4.453.77 percent senior notes, due 2042,2046, secured by Con Edison Development’s Upton County Solar renewable electric production project.equity interests in CED Nevada Virginia.


2016
Borrowed $2 million pursuant to a loan agreement with a New Jersey utility. The borrowing matures in 2026, bears interest of 11.18 percent and may be repaid in cash or project Solar Renewable Energy Certificates;
Issued $95 million aggregate principal amount of 4.07 percent senior notes, due 2036, secured by the company's California Holdings 3 renewable electric production project; and
Issued $218 million aggregate principal amount of 4.21 percent senior notes, due 2041, secured by the company's Texas Solar 7 renewable electric production project.

2015
Issued $118 million aggregate principal amount of 3.94 percent senior notes, due in 2036, secured by the company's California Holdings 2 renewable electric production project; and
Issued $159 million aggregate principal amount of 4.53 percent senior notes due in 2040, secured by the company's Texas Solar 5 renewable electric production project.


Cash flows from financing activities of the Companies also reflect commercial paper issuance. The commercial paper amounts outstanding at December 31, 2017, 20162023, 2022 and 20152021 and the average daily balances for 2017, 20162023, 2022 and 20152021 for Con Edison and CECONY were as follows:

  202320222021
(Millions of Dollars, except
Weighted Average Yield)
Outstanding at
December 31
Daily
average
Outstanding at
December 31
Daily
average
Outstanding at
December 31
Daily
average
Con Edison$2,288$1,446$2,640$1,485$1,488$1,189
CECONY$1,903$1,377$2,300$1,306$1,361$1,082
Weighted average yield5.6 %5.3 %4.8 %2.3 %0.3 %0.2 %

70
CON EDISON ANNUAL REPORT 2017732023




  201720162015
(Millions of Dollars, except
Weighted Average Yield)
Outstanding at
December 31

Daily
average

Outstanding at
December 31
Daily
average

Outstanding at
December 31
Daily
average

Con Edison$577$566$1,054$744$1,529$823
CECONY$150$251$600$362$1,033$379
Weighted average yield1.8%1.2%1.0%0.6%0.7%0.4%
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.


Other Changes in Assets, Liabilities and LiabilitiesEquity
The following table shows changes in certainCompanies’ assets, liabilities and liabilitiesequity at December 31, 2017, compared with December 31, 2016.2023 and 2022 are summarized as follows:
  CECONYO&RClean Energy
 Businesses (c)		Con Edison
Transmission		Other (a)Con Edison (b)
(Millions of Dollars)202320222023202220232022202320222023202220232022
ASSETS
Current assets$5,981$5,247$302$332$—$879$25$4$229$6,510$6,537$12,972
Investments6085392220— — 3652864(4)999841
Net plant46,64844,0112,9432,738—4,7181717—(4,718)49,60846,766
Other noncurrent assets8,3637,648408421—1,62777409(1,217)9,1878,486
Total Assets$61,600$57,445$3,675$3,511$—$7,224$414$314$642$571$66,331$69,065
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities$5,694$6,036$349$409$—$1,596$5$163$414$3,132$6,462$11,336
Noncurrent liabilities15,95015,4511,1461,103—338(76)(86)(236)(113)16,78416,693
Long-term debt20,81019,0801,1181,068—2,292——(1)(2,293)21,92720,147
Equity19,14616,8781,062931—2,998485237465(155)21,15820,889
Total Liabilities and Equity$61,600$57,445$3,675$3,511$—$7,224$414$314$642$571$66,331$69,065
 Con EdisonCECONY
(Millions of Dollars)
2017 vs. 2016
Variance
2017 vs. 2016
Variance
Assets  
Non-utility property, less accumulated depreciation$294
$—
Non-utility plant - Construction work in progress(138)—
Other deferred charges and noncurrent assets1218
Regulatory asset - Unrecognized pension and other postretirement costs(348)(354)
Regulatory asset - Future income tax(2,439)(2,325)
Liabilities  
Deferred income taxes and unamortized investment tax credits$(4,710)$(4,144)
Pension and retiree benefits(404)(404)
Regulatory liabilities - Future income tax2,5452,390
System benefit charge10185
(a) Other includes the parent company, Con Edison’s tax equity investments, the deferred project held for sale and consolidation adjustments. See Note X to the financial statements in Item 8.

Non-Utility Property, Less Accumulated Depreciation
The increase in non-utility property, less accumulated depreciation, for Con Edison reflects(b) Represents the completionconsolidated results of constructionoperations of Con Edison Development's Upton County Solar renewable electric production project. See "Clean Energy Businesses –and its businesses.
(c) On March 1, 2023, Con Edison Development"completed the sale of all of the stock of the Clean Energy Businesses. See Note W and "Capital Requirements and Resources – Capital Requirements"Note X to the financial statements in Item 1.8.
Non-Utility Plant - Construction Work
CECONY
Current assets at December 31, 2023 were $734 million higher than at December 31, 2022. The change in Progresscurrent assets primarily reflects increases in accounts receivables, net of allowance for uncollectible accounts ($231 million) (see “COVID-19 Regulatory Matters” in Note B to the financial statements in Item 8 and “Aged Accounts Receivable Balances,” above), an increase to accrued unbilled revenue ($105 million), an increase in prepayments ($106 million), an increase in accounts receivable from affiliated companies ($100 million), an increase in cash and temporary cash investments ($82 million) and an increase in the revenue decoupling mechanism receivable ($26 million).

Investments at December 31, 2023 were $69 million higher than at December 31, 2022. The change in investments primarily reflects increases in supplemental retirement income plan assets ($63 million) and deferred income plan assets ($6 million). See "Investments" in Note A and Note E to the financial statements in Item 8.

Net plant at December 31, 2023 was $2,637 million higher than at December 31, 2022. The change in net plant primarily reflects an increase in electric ($2,172 million), gas ($888 million), steam ($150 million) and general ($651 million) plant balances, offset in part by an increase in accumulated depreciation ($1,124 million) and a decrease in construction work in progress for Con Edison reflects projects that have reached commercial operation.($100 million).


Other Deferred Charges and Noncurrent Assets
noncurrent assets at December 31, 2023 were $715 million higher than at December 31, 2022. The change in other noncurrent assets primarily reflects an increase in other deferred charges and noncurrentthe regulatory assets for Con Edison reflectsCOVID-19 pandemic deferrals ($393 million), system peak reduction and energy efficiency programs ($258 million) and deferred costs of $33 million related to aid providedderivative losses - long term ($122 million), offset in part by the Utilities in the restoration of power in Puerto Rico in the aftermath of September 2017 hurricanes.







74CON EDISON ANNUAL REPORT 2017



Regulatory Asset for Unrecognized Pension and Other Postretirement Costs and Liability for Pension and Retiree Benefits
Thea decrease in the regulatory assetassets for unrecognized pension and other postretirement costs and the liability for pension and retiree benefits reflects the final actuarial valuation of the pension and other retiree benefit plans as measured at December 31, 2017, in accordance with the accounting rules for retirement benefits.($78 million). The change in the regulatory asset also reflects the year'speriod's amortization of accounting costs. The change in the liability for pension and retiree benefits reflects in part contributions to the plans made by the Utilities in 2017. See Notes B, E, and F to the financial statements in Item 8.


Deferred Income Taxes
CON EDISON ANNUAL REPORT 202371


Current liabilities at December 31, 2023 were $342 million lower than at December 31, 2022. The change in current liabilities primarily reflects decreases in notes payable ($397 million), accounts payable ($134 million) and Unamortized Investment Tax Credits, Regulatory Assetaccrued taxes to affiliated companies ($88 million), offset in part by increases in long-term debt due within one year ($250 million) and Liability for Future Income Taxcustomer deposits ($37 million).

Noncurrent liabilities at December 31, 2023 were $499 million higher than at December 31, 2022. The decreasechange in noncurrent liabilities primarily reflects increases in deferred income taxes and unamortized investment tax credits ($840 million), the regulatory liabilities for pension and other postretirement benefit deferrals ($135 million), allowance for cost of removal less salvage ($129 million) and asset retirement obligations ($21 million), offset in part by a decrease in the regulatory assetliabilities for future income taxunrecognized other postretirement costs ($669 million). See Notes E and increase in regulatory liability for future income tax reflects the re-measurement of the Companies’ deferred tax assets and liabilities based upon the 21 percent corporate income tax rate under the TCJA. See “Federal Income Taxes” in Note A, “Other Regulatory Matters” in Note B and Note LF to the financial statements in Item 8.


System Benefit ChargeLong-term debt at December 31, 2023 was $1,730 million higher than at December 31, 2022. The change in long-term debt primarily reflects the 2023 issuances of $2,000 million of debentures, offset in part by the reclassification of $250 million of long-term debt to long-term debt due within one year. 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, 2023 was $2,268 million higher than at December 31, 2022. The change in equity primarily reflects net income for the year ($1,606 million) and capital contributions from parent ($1,720 million) in 2023, offset in part by common stock dividends to parent ($1,056 million) in 2023 and a decrease in other comprehensive income ($2 million).

O&R
Current assets at December 31, 2023 were $30 million lower than at December 31, 2022. The change in current assets primarily reflects decreases in accrued unbilled revenue ($29 million), cash and temporary cash investments ($13 million) and accounts receivables, net of allowance for uncollectible accounts ($5 million) (see “COVID-19 Regulatory Matters” in Note B to the financial statements in Item 8 and “Aged Accounts Receivable Balances,” above), offset in part by increases in revenue decoupling mechanism receivable ($13 million) and accounts receivable from affiliated companies ($6 million).

Net plant at December 31, 2023 was $205 million higher than at December 31, 2022. The change in net plant primarily reflects an increase in electric ($80 million), gas ($48 million), an increase in construction work in progress ($60 million) and a decrease in accumulated depreciation ($38 million), offset in part by a decrease in general ($21 million) plant balances.

Other noncurrent assets at December 31, 2023 were $13 million lower than at December 31, 2022. The change in
other noncurrent assets primarily reflects decreases in regulatory assets ($12 million) and the fair value of derivative assets ($6 million), offset in part by an increase in the pension and retiree benefits ($6 million).
Current liabilities at December 31, 2023 were $60 million lower than at December 31, 2020. The change in current liabilities primarily reflects decreases in regulatory liabilities ($28 million), notes payable ($13 million) and accounts payables to affiliates ($11 million).

Noncurrent liabilities at December 31, 2023 were $43 million higher than at December 31, 2022. The change in noncurrent liabilities primarily reflects an increase in deferred income taxes and unamortized investment tax credits ($47 million), offset in part by a decrease in superfund and other environmental costs ($3 million).

Long-term debt at December 31, 2023 was $50 million higher than at December 31, 2022. The change in long-term debt reflects the December 2023 issuance of $50 million of debentures. See "Liquidity and Capital Resources - Cash Flows From Financing Activities" above.

Equity at December 31, 2023 was $131 million higher than at December 31, 2022. The change in equity primarily reflects net income for the year ($96 million) and capital contributions from parent ($100 million), offset in part by common stock dividends to parent ($64 million) in 2023 and a decrease in other comprehensive income ($1 million).


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CON EDISON ANNUAL REPORT 2023


Con Edison Transmission
Current assets at December 31, 2023 were $21 million higher than at December 31, 2022. The increase in current assets primarily reflects an increase in cash and temporary investments ($25 million).

Investments at December 31, 2023 were $79 million higher than at December 31, 2022. The increase in investments reflects additional investment in New York Transco ($45 million) and non-cash equity in earnings from allowance for funds used during construction from MVP ($33 million).

Current liabilities at December 31, 2023 were $158 million lower than at December 31, 2022. The change in current liabilities primarily reflects repayment of an intercompany loan ($154 million).

Noncurrent liabilities at December 31, 2023 were $10 million higher than at December 31, 2022. The change in noncurrent liabilities primarily reflects an increase in the liability foraccumulated deferred income taxes on earnings from investments in New York Transco and MVP ($9 million).

Equity at December 31, 2023 was $248 million higher than at December 31, 2022. The change in equity primarily reflects an equity contribution from the system benefit charge reflects amounts collected byparent, the Utilities from their customers that will be requiredproceeds of which were primarily used to be paidrepay an intercompany loan.

Clean Energy Businesses
On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note W and Note X to NYSERDA. See “Environmental Matters – Climate Change”the financial statements in Item 1.8.
CON EDISON ANNUAL REPORT 202373
Off-Balance Sheet Arrangements

None of the Companies’ transactions, agreements or other contractual arrangements meet the SEC definition of off-balance sheet arrangements.

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.


Application of Critical Accounting PoliciesEstimates
The Companies’ financial statements reflect the application of theircertain critical accounting policies,estimates, which conform to accounting principles generally accepted in the United States of America. The Companies’ critical accounting policiesestimates include industry-specificassumptions applied to accounting applicable to regulated public utilities and accounting forfor: pensions and other postretirement benefits, contingencies, long-lived assets, goodwillderivative instruments, allowance for uncollectible accounts receivable, asset retirement obligations and derivative instruments.
income taxes. Also, see “Summary of Significant Accounting for Regulated Public Utilities
The Utilities are subject to the accounting rules for regulated operationsPolicies and the accounting requirements of the FERC and the state public utility regulatory commissions 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 listedOther Matters” in Note BA to the financial statements in Item 8. The Utilities are each receiving or being credited with a return on all regulatory assets for which a cash outflow has been made. The Utilities are each paying or being charged with a return on all regulatory liabilities for which a cash inflow has been received. The regulatory assets and liabilities will be recovered from customers, or applied for customer benefit, in accordance with rate provisions approved by the applicable public utility regulatory commission.

CON EDISON ANNUAL REPORT 201775


In the event that regulatory assets of the Utilities were no longer probable of recovery, as required by the accounting rules for regulated operations, these regulatory assets would be charged to earnings. At December 31, 2017, the regulatory assets for Con Edison and CECONY were $4,333 million and $3,925 million, respectively.
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 provideprovides such benefits to certain employees.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 2017, 20162023, 2022 and 2015.2021.


The discount rate for determining the present value of future period benefit payments is determined using a model to match the durations of highly-rated (Aa or higher byAa 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 20182024 are increases, compared with 2017,2023, in their pension and other postretirement benefits costs of $59$181 million and $51$168 million, respectively.respectively, largely driven by decreases 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 20182024 pension and other postretirement costs of changing the critical actuarial assumptions, while holding all other actuarial assumptions constant:
Actuarial Assumption
Change in
Assumption

Pension
Other
Postretirement
Benefits
Total
  (Millions of Dollars)
Increase in accounting cost:    
Discount rate    
Con Edison(0.25)%$57$3$60
CECONY(0.25)%$54$2$56
Expected return on plan assets    
Con Edison(0.25)%$33$2$35
CECONY(0.25)%$31$2$33
Health care trend rate    
Con Edison1.00%
$—
$3$3
CECONY1.00%
$—
$(3)$(3)
Increase in projected benefit obligation:    
Discount rate    
Con Edison(0.25)%$591$37$628
CECONY(0.25)%$557$28$585
Health care trend rate    
Con Edison1.00%
$—
$13$13
CECONY1.00%
$—
$(20)$(20)

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CON EDISON ANNUAL REPORT 2023


Actuarial AssumptionChange in
Assumption		PensionOther
Postretirement
Benefits		Total
  (Millions of Dollars)
Increase in accounting cost:
Discount rate
Con Edison(0.25)%$37$2$39
CECONY(0.25)%$36$2$38
Expected return on plan assets
Con Edison(0.25)%$42$3$45
CECONY(0.25)%$40$2$42
Future compensation increases
Con Edison0.50 %$29$— $29
CECONY0.50 %$28$— $28
Health care trend rate
Con Edison1.00 %$— $10$10
CECONY1.00 %$— $8$8
Increase in projected benefit obligation:
Discount rate
Con Edison(0.25)%$396$25$421
CECONY(0.25)%$377$21$398
Future compensation increases
Con Edison0.50 %$138$— $138
CECONY0.50 %$135$— $135
Health care trend rate
Con Edison1.00 %$— $62$62
CECONY1.00 %$— $49$49
A 5.05 percentage point variation in the actual annual return in 2018,2024, as compared with the expected annual asset return of 7.506.75 percent, would change pension and other postretirement benefit costs for Con Edison and CECONY by approximately $42$27 million and $39$25 million, respectively, in 2019.

76CON EDISON ANNUAL REPORT 2017



2025.
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 may 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 20172023 under funding regulations and tax laws. However, CECONY and O&R made discretionary contributions to the pension plan in 20172023 of $412$18 million and $38$3 million, respectively. In 2018,2024, CECONY and O&R expect to make contributions to the pension plan of $435$9 million and $37$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
CON EDISON ANNUAL REPORT 202375


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.
Accounting for Long-Lived and Intangible Assets
The accounting rules for certain long-lived assets and intangible assets with definite lives require testing for recoverability whenever events or changes in circumstances indicate their carrying amounts 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 asset. Under the accounting rules, an impairment loss is recognized if the carrying amount is not recoverable from such cash flows, and exceeds its fair value, which approximates market value. In 2015, Con Edison recorded a $5 million impairment charge on Pike assets held for sale. See Note U to the financial statements in Item 8. No impairment charges on long-lived assets were recognized in 2017 or 2016. No impairment charges on intangible assets with definite lives were recognized in 2017, 2016 or 2015. For information about the Companies' intangible assets, see Note K to the financial statements in Item 8.
Accounting for Goodwill
In accordance with the accounting rules for goodwill and intangible assets, Con Edison is required to test goodwill for impairment annually or whenever there is a triggering event. See “Goodwill” in Note A and Note K to the financial statements in Item 8. The company has an option to first make a qualitative assessment that evaluates relevant events and circumstances, such as industry and market conditions, regulatory environment and financial performance. If, after applying the optional qualitative assessment, it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the company then applies a two-step, quantitative goodwill impairment test.

The first step of 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, the second step is performed to measure the amount of impairment loss, if any. The second step requires a calculation of the implied fair value of goodwill.

Goodwill was $428 million at December 31, 2017, which consists of $406 million related to the 1999 O&R merger, $8 million related to a gas storage company owned by CET Gas and $14 million related to a residential solar company owned by the Clean Energy Businesses.


CON EDISON ANNUAL REPORT 201777


During 2017, Con Edison elected to perform the optional qualitative assessment for goodwill related to the O&R merger and the gas storage company and determined no quantitative analysis was required and no goodwill impairment was recorded.

The first step of the quantitative analysis was performed for the residential solar company owned by the Clean Energy Businesses. Based on the results, it was determined that the fair value of the reporting unit exceeded the carrying value, and as such, the second step was not required and no goodwill impairment was recorded. The most significant assumptions for the goodwill impairment test relate to the estimates of reporting unit fair values. The company estimated fair values using primarily discounted cash flows. 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.

During 2016, the impairment tests required a second-step assessment to be performed on goodwill of $15 million related to two energy service companies owned by the Clean Energy Businesses. Based on the results of step two of the impairment test, the Clean Energy Businesses recorded an impairment charge of $15 million ($12 million, net of tax). A second-step assessment of goodwill related to the O&R merger, residential solar company and gas storage company was not required.
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 OP 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.


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, 2023, 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 $360 million and $353 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 percent increase in the assumed inflation rate used to value the ARO liability as of December 31, 2023 would increase the liability by $40 million for Con Edison and CECONY.

Accounting for Income Taxes
The Companies record provisions for income taxes, deferred tax assets and liabilities, and a valuation allowance against net deferred tax assets, if any. The reporting of tax-related assets and liabilities requires the use of estimates and significant judgments by management. Deferred tax assets and liabilities are recorded to represent future effects on income taxes for temporary differences between the basis of assets for financial reporting and tax purposes. Although management believes that current estimates for deferred tax assets and liabilities are

76
CON EDISON ANNUAL REPORT 2023


reasonable, actual results could differ materially from these estimates for several reasons, including, but not limited to: a change in forecasted financial condition and/or results of operations; changes in income tax laws, enacted tax rates or amounts subject to income tax or state apportionments; the form, structure, and timing of asset or stock sales or dispositions; changes in the regulatory treatment of any tax reform benefits; and changes resulting from audits and examinations by taxing authorities. Valuation allowances against deferred tax assets are recorded when management concludes it is more likely than not such asset will not be realized in future periods. Accounting for income taxes also requires that only tax benefits for positions taken or expected to be taken on tax returns that meet the more-likely-than-not recognition threshold can be recognized or continue to be recognized. Management evaluates each position solely on the technical merits and facts and circumstances of the position, assuming that the position will be examined by a taxing authority that has full knowledge of all relevant information. Significant judgment is required to determine recognition thresholds and the related amount of tax benefits to be recognized. At each period end, and as new developments occur, management reevaluates its tax positions. Additional interpretations, regulations, amendments, or technical corrections related to the federal income tax code as a result of the Inflation Reduction Act, may impact the estimates for income taxes discussed above. See “Changes To Tax Laws Could Adversely Affect the Companies” in Item 1A, “Inflation Reduction Act” above, “Federal Income Tax” and “State Income Tax” in Note A and Note L 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 credit risk and investment risk.
Interest Rate Risk
The Companies' interest rate risk relates primarily to variable rate debt andrelates to new debt financing needed to fund capital requirements, including the construction expenditures of the Utilities and maturing debt securities.securities, and variable-rate debt. Con Edison and its businessessubsidiaries manage interest rate risk through the issuance of mostly fixed-rate debt with varying maturities and through opportunistic refinancing of debt. Con Edison and CECONY estimate that at December 31, 2017,2023, a 10 percent increase in interest rates applicable to its variable rate debt would result in an increase in annual interest expense of $3 million.$15 million and $12 million, respectively. At December 31, 2022, Con Edison and CECONY estimated that 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. 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, variable-rate debt and long-term debt issuances.
Commodity Price Risk
Con Edison’s commodity price risk primarily relates primarily 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 OP to the financial statements in Item 8.
Con Edison estimates that, as of December 31, 2017,2023, a 10 percent decline in market prices would result in a decline in fair value of $82$149 million for the derivative instruments used by the Utilities to hedge purchases of electricity and gas, of which $74$138 million is for CECONY and $8$11 million is for O&R. As of December 31, 2022, Con Edison estimated that 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 theirthose customers, including gains and losses on certain

78CON EDISON ANNUAL REPORT 2017



derivative instruments used to hedge energy purchased and related costs. See “Recoverable Energy Costs” in Note A to the financial statements in Item 8.
The Clean Energy Businesses use a value-at-risk (VaR) model to assess the market price risk of their portfolio of electricity However, increases in electric and gas commodity fixed-price purchase and sales commitments, physical forward contracts, generating assets and commodity derivative instruments. VaR represents the potential change in fair valueprices may contribute to a slower recovery of the portfolio due to changes in market prices for a 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 changecash 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, 2017 and 2016, respectively, was as follows:outstanding customer accounts receivable balances.
CON EDISON ANNUAL REPORT 202377
95% Confidence Level, One-Day Holding Period2017
2016
 (Millions of Dollars)
Average for the period
$—
$2
High1
4
Low—
1

Credit Risk
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. See the discussion of credit exposure in Note O to the financial statements in Item 8.
Investment Risk
The Companies’ investment risk relates to the investment of plan assets for their pension and other postretirement benefit plans andplans. Con Edison's investment risk also relates to the investments of the Clean Energy Businesses and Con Edison Transmission that are accounted for under the equity method. See “Application of Critical“Critical Accounting PoliciesEstimates – Accounting for Pensions and Other Postretirement Benefits,” above and “Investments” in Note A and Notes A, E and F to the financial statements in Item 8.

The Companies’ current investment policy for pension plan assets includes investment targets of 5326 to 6330 percent equities and 35equity securities, 42 to 4960 percent fixed income and other securities.debt securities, 14 to 30 percent alternatives. At December 31, 2017,2023, the pension plan investments consisted of 5826 percent equity securities, 50 percent debt securities and 4224 percent fixed income and other securities.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. Generally, O&R also defers such difference pursuant to its New York 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.
Impact of Inflation
The Companies are affected by the decline in the purchasing power of the dollar caused by inflation. Regulation permits the Utilities to recover through depreciation only the historical cost of their plant assets even though in an inflationary economy the cost to replace the assets upon their retirement will substantially exceed historical costs. The impact is, however, partially offset by the repayment of the Companies’ long-term debt in dollars of lesser value than the dollars originally borrowed.
Material Contingencies
For information concerning potential liabilities arising from the Companies’ material contingencies, see “Application of Critical“Critical Accounting PoliciesEstimates – Accounting for Contingencies,” above, and Notes B, G and H to the financial statements in Item 8.


78
CON EDISON ANNUAL REPORT 2017792023




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.
 

80CON EDISON ANNUAL REPORT 2017202379





Item 8:    Financial Statements and Supplementary Data
Financial StatementsPage
8381
8482
8684
8785
8886
8987
9189
9290
9593
9694
9896
9997
10098
10199
103101
104102
106104
Con Edison
160173
Schedule II – Valuation and Qualifying Accounts
163
CECONY
Schedule II – Valuation and Qualifying Accounts
163
All other schedules are omitted because they are not applicable or the required information is shown in financial statements or notes thereto.
 

CON EDISON ANNUAL REPORT 201781

80


Supplementary Financial Information
Selected Quarterly Financial Data for the years ended December 31, 2017 and 2016 (Unaudited)
 2017
Con Edison
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
 (Millions of Dollars, except per share amounts)
Operating revenues$3,228$2,633$3,211$2,961
Operating income771423873544
Net income388175457505
Basic earnings per share$1.27$0.57$1.48$1.63
Diluted earnings per share$1.27$0.57$1.48$1.62
 2016
Con EdisonFirst
Quarter		Second
Quarter		Third
Quarter		Fourth
Quarter
 (Millions of Dollars, except per share amounts)
Operating revenues$3,156$2,794$3,417$2,707
Operating income642515940478
Net income310232497207
Basic earnings per share$1.05$0.78$1.63$0.68
Diluted earnings per share$1.05$0.77$1.62$0.67
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.
 2017
CECONY
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
 (Millions of Dollars)
Operating revenues$2,856$2,293$2,799$2,520
Operating income705387800514
Net income339143401221
 2016
CECONYFirst
Quarter		Second
Quarter		Third
Quarter		Fourth
Quarter
 (Millions of Dollars)
Operating revenues$2,632$2,281$2,828$2,424
Operating income640392766463
Net income310161388197
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.

82CON EDISON ANNUAL REPORT 20172023







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, 2017,2023, 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, 2017.2023.
The effectiveness of the Company’s internal control over financial reporting as of December 31, 2017,2023, 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
/s/ John McAvoy
John McAvoy
Chairman, President and Chief Executive Officer
/s/ Robert Hoglund
Robert Hoglund
Senior Vice President and Chief Financial Officer
February 15, 20182024
 

CON EDISON ANNUAL REPORT 201720238381




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,schedule, of Consolidated Edison, Inc. and its subsidiaries (the Company)“Company”) as listed in the accompanying 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, 2017,2023, 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, 20172023 and 2016,2022, and the results of theirits operations and theirits cash flows for each of the three years in the period ended December 31, 20172023 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, 2017,2023, 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 overOver Financial Reporting. Our responsibility is to express opinions on the Company’s consolidated financial statements and on the Company’sCompany'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")(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.



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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.



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, 2023, there were $4,888 million of deferred costs included in regulatory assets and $5,473 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 15, 20182024

We have served as the Company’s or its predecessor’spredecessors' auditor since 1938.










CON EDISON ANNUAL REPORT 201720238583




Consolidated Edison, Inc.
Consolidated Income Statement
 
For the Years Ended December 31, For the Years Ended December 31,
(Millions of Dollars/Except Share Data)2017 2016 2015
(Millions of Dollars/Except Share Data)202320222021
OPERATING REVENUES  
Electric
Electric
Electric$8,612 $8,741 $8,832$10,835$10,522$9,485
Gas2,133 1,692 1,709Gas3,1273,2372,638
Steam595 551 629Steam569593532
Non-utility693 1,091 1,384Non-utility1321,3181,021
TOTAL OPERATING REVENUES12,033 12,075 12,554TOTAL OPERATING REVENUES14,66315,67013,676
OPERATING EXPENSES  
Purchased power1,601 2,439 2,973
Purchased power
Purchased power2,5412,4791,835
Fuel216 172 248Fuel282356229
Gas purchased for resale808 477 495Gas purchased for resale8291,245690
Other operations and maintenance3,303 3,269 3,344Other operations and maintenance3,6063,9053,254
Depreciation and amortization1,341 1,216 1,130Depreciation and amortization2,0312,0562,032
Taxes, other than income taxes2,155 2,031 1,937Taxes, other than income taxes3,0433,0052,810
TOTAL OPERATING EXPENSES9,424 9,604 10,127TOTAL OPERATING EXPENSES12,33213,04610,850
Gain on sale of retail electric supply business and solar electric production projects1 104 —
Gain on sale of the Clean Energy Businesses
Gain on sale of the Clean Energy Businesses
Gain on sale of the Clean Energy Businesses865—
OPERATING INCOME2,610 2,575 2,427OPERATING INCOME3,1962,6242,826
OTHER INCOME (DEDUCTIONS)  
Investment income79 47 —
Investment income (loss)
Investment income (loss)
Investment income (loss)6220(420)
Other income47 44 35Other income83440222
Allowance for equity funds used during construction11 10 5Allowance for equity funds used during construction261921
Other deductions(21) (37) (16)Other deductions(92)(115)(161)
TOTAL OTHER INCOME116 64 24
TOTAL OTHER INCOME (DEDUCTIONS)TOTAL OTHER INCOME (DEDUCTIONS)830326(538)
INCOME BEFORE INTEREST AND INCOME TAX EXPENSE2,726 2,639 2,451INCOME BEFORE INTEREST AND INCOME TAX EXPENSE4,0262,9502,288
INTEREST EXPENSE  
INTEREST EXPENSE (INCOME)
Interest on long-term debt726 678 632
Other interest11 24 24
Interest on long-term debt
Interest on long-term debt962987930
Other interest expense (income)Other interest expense (income)113(99)(14)
Allowance for borrowed funds used during construction(8) (6) (3)Allowance for borrowed funds used during construction(52)(36)(11)
NET INTEREST EXPENSE729 696 653NET INTEREST EXPENSE1,023852905
INCOME BEFORE INCOME TAX EXPENSE1,997 1,943 1,798INCOME BEFORE INCOME TAX EXPENSE3,0032,0981,383
INCOME TAX EXPENSE472 698 605INCOME TAX EXPENSE487498190
NET INCOME$1,525 $1,245 $1,193NET INCOME$2,516$1,600$1,193
Loss attributable to non-controlling interestLoss attributable to non-controlling interest$(3)$(60)$(153)
NET INCOME FOR COMMON STOCKNET INCOME FOR COMMON STOCK$2,519$1,660$1,346
Net income per common share — basic$4.97 $4.15 $4.07Net income per common share — basic$7.25$4.68$3.86
Net income per common share — diluted$4.94 $4.12 $4.05Net income per common share — diluted$7.21$4.66$3.85
DIVIDENDS DECLARED PER COMMON SHARE$2.76 $2.68 $2.60
AVERAGE NUMBER OF SHARES OUTSTANDING — BASIC (IN MILLIONS)307.1 300.4 293.0AVERAGE NUMBER OF SHARES OUTSTANDING — BASIC (IN MILLIONS)347.7354.5348.4
AVERAGE NUMBER OF SHARES OUTSTANDING — DILUTED (IN MILLIONS)308.8 301.9 294.4AVERAGE NUMBER OF SHARES OUTSTANDING — DILUTED (IN MILLIONS)349.3355.8349.4
The accompanying notes are an integral part of these financial statements.
 

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Consolidated Edison, Inc.
Consolidated Statement of Comprehensive Income
 
For the Years Ended December 31, For the Years Ended December 31,
(Millions of Dollars)2017 2016 2015(Millions of Dollars)202320222021
NET INCOME$1,525 $1,245 $1,193NET INCOME$2,516$1,600$1,193
LOSS ATTRIBUTABLE TO NON-CONTROLLING INTERESTLOSS ATTRIBUTABLE TO NON-CONTROLLING INTEREST360153
OTHER COMPREHENSIVE INCOME, NET OF TAXES 
Pension and other postretirement benefit plan liability adjustments, net of taxes1 7 11
Pension and other postretirement benefit plan liability adjustments, net of taxes
Pension and other postretirement benefit plan liability adjustments, net of taxes—1630
Other income, net of taxesOther income, net of taxes—1—
TOTAL OTHER COMPREHENSIVE INCOME, NET OF TAXES1 7 11TOTAL OTHER COMPREHENSIVE INCOME, NET OF TAXES—1730
COMPREHENSIVE INCOME$1,526 $1,252 $1,204COMPREHENSIVE INCOME$2,519$1,677$1,376
The accompanying notes are an integral part of these financial statements.

CON EDISON ANNUAL REPORT 201720238785




Consolidated Edison, Inc.
Consolidated Statement of Cash Flows
  For the Years Ended December 31,
(Millions of Dollars)202320222021
OPERATING ACTIVITIES
Net Income$2,516$1,600$1,193
PRINCIPAL NON-CASH CHARGES/(CREDITS) TO INCOME
Depreciation and amortization2,0312,0562,032
Impairment of assets——443
Deferred income taxes132435133
Rate case amortization and accruals9273(16)
Net derivative (gains)/losses12(181)(53)
Pre-tax gain on sale of the Clean Energy Businesses(865)——
Other non-cash items, net(90)90127
CHANGES IN ASSETS AND LIABILITIES
Accounts receivable - customers(275)(285)(411)
Unbilled revenue and net unbilled revenue deferrals(48)(96)(53)
Allowance for uncollectible accounts – customers385169
Materials and supplies, including fuel oil and gas in storage38(111)(82)
Revenue decoupling mechanism receivable(39)26(53)
Other receivables and other current assets141(21)(157)
Prepayments(200)26(24)
Accounts payable(285)55844
Pensions and retiree benefits obligations, net(201)176266
Pensions and retiree benefits contributions(33)(39)(472)
Accrued taxes(13)7(46)
Accrued interest(7)424
Superfund and environmental remediation costs(12)(22)(10)
Distributions from equity investments312018
Deferred charges, noncurrent assets, leases, net and other regulatory assets(1,216)(870)(496)
Deferred credits, noncurrent liabilities and other regulatory liabilities196445258
Other current liabilities2131(81)
NET CASH FLOWS FROM OPERATING ACTIVITIES2,1563,9352,733
INVESTING ACTIVITIES
Utility construction expenditures(4,353)(3,824)(3,630)
Cost of removal less salvage(387)(337)(323)
Non-utility construction expenditures(141)(344)(323)
Proceeds from sale of the Clean Energy Businesses, net of cash and cash equivalents sold3,927—629
Divestiture of renewable electric projects——183
Other investing activities(49)(60)(20)
NET CASH FLOWS USED IN INVESTING ACTIVITIES(1,003)(4,565)(3,484)
FINANCING ACTIVITIES
Net (payment)/issuance of short-term debt(752)1,702(382)
Issuance of long-term debt2,0508002,804
Retirement of long-term debt(710)(406)(1,960)
Debt issuance costs(32)(13)(40)
Common stock dividends(1,096)(1,089)(1,030)
Issuance of common shares - public offering——775
Issuance of common shares for stock plans565760
Repurchase of common shares(1,000)——
Distribution to noncontrolling interest(4)(37)(23)
Sale of equity interest——257
NET CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES(1,488)1,014461
CASH, TEMPORARY CASH INVESTMENTS AND RESTRICTED CASH:
NET CHANGE FOR THE PERIOD(335)384(290)
BALANCE AT BEGINNING OF PERIOD1,5301,1461,436
BALANCE AT END OF PERIOD$1,195$1,530$1,146
LESS: CHANGE IN CASH BALANCES HELD FOR SALE5 248 —
BALANCE AT END OF PERIOD EXCLUDING HELD FOR SALE$1,190$1,282$1,146
SUPPLEMENTAL DISCLOSURE OF CASH INFORMATION
Cash paid during the period for:
Interest$987$900$924
Income taxes$397$47$9
SUPPLEMENTAL DISCLOSURE OF NON-CASH INFORMATION
Construction expenditures in accounts payable$598$681$457
Issuance of common shares for dividend reinvestment$31$31$49
Software licenses acquired but unpaid as of end of period$—$2$23
Equipment acquired but unpaid as of end of period$11$17$22
  For the Years Ended December 31,
(Millions of Dollars)2017
20162015
OPERATING ACTIVITIES   
Net Income$1,525$1,245$1,193
PRINCIPAL NON-CASH CHARGES/(CREDITS) TO INCOME   
Depreciation and amortization1,3411,2161,130
Deferred income taxes485783653
Rate case amortization and accruals(124)(210)(52)
Common equity component of allowance for funds used during construction(11)(10)(5)
Net derivative (gains)/losses(4)(6)3
Pre-tax gain on sale of retail electric supply business and solar electric production projects(1)(104)—
Other non-cash items, net(49)14277
CHANGES IN ASSETS AND LIABILITIES   
Accounts receivable - customers(6)(69)96
Materials and supplies, including fuel oil and gas in storage51322
Other receivables and other current assets(44)54(27)
Taxes receivable158758
Prepayments(19)20(14)
Accounts payable9529(79)
Pensions and retiree benefits obligations, net414609756
Pensions and retiree benefits contributions(467)(515)(756)
Accrued taxes442(10)
Accrued interest(7)144
Superfund and environmental remediation costs, net(14)6922
Distributions from equity investments1086831
System benefit charge10124438
Deferred charges, noncurrent assets and other regulatory assets2,376(97)(111)
Deferred credits and other regulatory liabilities(2,524)(68)182
Other current and noncurrent liabilities128(57)66
NET CASH FLOWS FROM OPERATING ACTIVITIES3,3673,4593,277
INVESTING ACTIVITIES   
Utility construction expenditures(3,028)(2,835)(2,562)
Cost of removal less salvage(248)(206)(219)
Non-utility construction expenditures(415)(845)(492)
Investments in electric and gas transmission projects(45)(1,076)—
Investments in/acquisitions of renewable electric production projects(45)(402)(299)
Proceeds from sale of assets34252—
Restricted cash7(17)(13)
Proceeds from the transfer of assets to NY Transco—
122—
Other investing activities3731(72)
NET CASH FLOWS USED IN INVESTING ACTIVITIES(3,703)(4,976)(3,657)
FINANCING ACTIVITIES   
Net (payment)/issuance of short-term debt(477)(475)729
Issuance of long-term debt1,6972,5901,147
Retirement of long-term debt(434)(735)(500)
Debt issuance costs(19)(24)(15)
Common stock dividends(803)(763)(733)
Issuance of common shares - public offering343702—
Issuance of common shares for stock plans, net of repurchases51511
Distribution to noncontrolling interest(1)(1)—
NET CASH FLOWS FROM FINANCING ACTIVITIES3571,345629
CASH AND TEMPORARY CASH INVESTMENTS:   
NET CHANGE FOR THE PERIOD21(172)249
BALANCE AT BEGINNING OF PERIOD776944699
BALANCE AT END OF PERIOD797772948
LESS: CHANGE IN CASH BALANCES HELD FOR SALE—
(4)4
BALANCE AT END OF PERIOD EXCLUDING HELD FOR SALE$797$776$944
    
SUPPLEMENTAL DISCLOSURE OF CASH INFORMATION   
Cash paid/(received) during the period for:   
Interest$725$664$597
Income taxes$(29)$(180)$(36)
SUPPLEMENTAL DISCLOSURE OF NON-CASH INFORMATION   
Construction expenditures in accounts payable$432$388$279
Issuance of common shares for dividend reinvestment$46$46$28
Debt assumed with business acquisitions
$—
$195
$—



The accompanying notes are an integral part of these financial statements.

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Consolidated Edison, Inc.
Consolidated Balance Sheet
(Millions of Dollars)December 31, 2017 December 31, 2016
ASSETS   
CURRENT ASSETS   
Cash and temporary cash investments$797 $776
Accounts receivable — customers, less allowance for uncollectible accounts of $63 and $69 in 2017 and 2016, respectively1,103 1,106
Other receivables, less allowance for uncollectible accounts of $8 and $14 in 2017 and 2016, respectively160 195
Taxes receivable64 79
Accrued unbilled revenue598 447
Fuel oil, gas in storage, materials and supplies, at average cost334 339
Prepayments178 159
Regulatory assets67 100
Restricted cash47 54
Other current assets189 151
TOTAL CURRENT ASSETS3,537 3,406
INVESTMENTS2,001 1,921
UTILITY PLANT, AT ORIGINAL COST   
Electric28,994 27,747
Gas8,256 7,524
Steam2,473 2,421
General3,008 2,719
TOTAL42,731 40,411
Less: Accumulated depreciation9,063 8,541
Net33,668 31,870
Construction work in progress1,605 1,175
NET UTILITY PLANT35,273 33,045
NON-UTILITY PLANT   
Non-utility property, less accumulated depreciation of $201 and $140 in 2017 and 2016, respectively1,776 1,482
Construction work in progress551 689
NET PLANT37,600 35,216
OTHER NONCURRENT ASSETS   
Goodwill428 428
Intangible assets, less accumulated amortization of $15 and $6 in 2017 and 2016, respectively131 124
Regulatory assets4,266 7,024
Other deferred charges and noncurrent assets148 136
TOTAL OTHER NONCURRENT ASSETS4,973 7,712
TOTAL ASSETS$48,111 $48,255
(Millions of Dollars)December 31, 2023December 31, 2022
ASSETS
CURRENT ASSETS
Cash and temporary cash investments$1,189$1,282
Accounts receivable — customers, net allowance for uncollectible accounts of $360 and $322 in 2023 and 2022, respectively2,4182,192
Other receivables, net allowance for uncollectible accounts of $13 and $10 in 2023 and 2022, respectively444164
Taxes receivable110
Accrued unbilled revenue722702
Fuel oil, gas in storage, materials and supplies, at average cost469492
Prepayments470264
Regulatory assets281305
Restricted cash1—
Revenue decoupling mechanism receivable203164
Fair value of derivative assets5259
Assets held for sale1637,162
Other current assets124176
TOTAL CURRENT ASSETS6,53712,972
INVESTMENTS999841
UTILITY PLANT, AT ORIGINAL COST
Electric39,07136,819
Gas14,31813,378
Steam3,0852,935
General4,8354,205
TOTAL61,30957,337
Less: Accumulated depreciation14,15713,069
Net47,15244,268
Construction work in progress2,4422,484
NET UTILITY PLANT49,59446,752
NON-UTILITY PLANT
Non-utility property, net accumulated depreciation of $24 and $23 in 2023 and 2022, respectively1313
Construction work in progress11
NET PLANT49,60846,766
OTHER NONCURRENT ASSETS
Goodwill408408
Operating lease right-of-use-asset533568 
Regulatory assets4,6073,974
Pension and retiree benefits3,2753,269
Fair value of derivative assets4885
Other deferred charges and noncurrent assets316182
TOTAL OTHER NONCURRENT ASSETS9,1878,486
TOTAL ASSETS$66,331$69,065
The accompanying notes are an integral part of these financial statements.
 



CON EDISON ANNUAL REPORT 201720238987




Consolidated Edison, Inc.
Consolidated Balance Sheet
(Millions of Dollars)December 31, 2017 December 31, 2016(Millions of Dollars)December 31, 2023December 31, 2022
LIABILITIES AND SHAREHOLDERS’ EQUITY 
CURRENT LIABILITIES 
CURRENT LIABILITIES
CURRENT LIABILITIES
Long-term debt due within one year$1,298 $39
Long-term debt due within one year
Long-term debt due within one year$250$649
Term loanTerm loan—400
Notes payable577 1,054Notes payable2,2882,640
Accounts payable1,286 1,147Accounts payable1,7751,955
Customer deposits346 352Customer deposits396358
Accrued taxes108 64Accrued taxes73102
Accrued interest143 150Accrued interest170153
Accrued wages105 101Accrued wages125116
Fair value of derivative liabilities17 77Fair value of derivative liabilities19342
Regulatory liabilities101 128Regulatory liabilities145374
System benefit charge535 434
System benefit charge
System benefit charge444390
Operating lease liabilitiesOperating lease liabilities116103
Liabilities held for saleLiabilities held for sale763,610
Other current liabilities386 297Other current liabilities411444
TOTAL CURRENT LIABILITIES4,902 3,843TOTAL CURRENT LIABILITIES6,46211,336
NONCURRENT LIABILITIES 
Provision for injuries and damages
Provision for injuries and damages
Provision for injuries and damages153 160188181
Pensions and retiree benefits1,443 1,847Pensions and retiree benefits592577
Superfund and other environmental costs737 753Superfund and other environmental costs1,118997
Asset retirement obligations314 246Asset retirement obligations522500
Fair value of derivative liabilities38 40Fair value of derivative liabilities12113
Deferred income taxes and unamortized investment tax credits5,495 10,205Deferred income taxes and unamortized investment tax credits8,0697,641
Operating lease liabilitiesOperating lease liabilities429476
Regulatory liabilities4,577 1,905Regulatory liabilities5,3286,027
Other deferred credits and noncurrent liabilities296 215Other deferred credits and noncurrent liabilities417281
TOTAL NONCURRENT LIABILITIES13,053 15,371TOTAL NONCURRENT LIABILITIES16,78416,693
LONG-TERM DEBT14,731 14,735LONG-TERM DEBT21,92720,147
COMMITMENTS, CONTINGENCIES, AND GUARANTEES (Note B, Note G, and Note H)COMMITMENTS, CONTINGENCIES, AND GUARANTEES (Note B, Note G, and Note H)
EQUITY 
Common shareholders’ equity
Common shareholders’ equity
Common shareholders’ equity15,418 14,29821,15820,687
Noncontrolling interest7 8Noncontrolling interest—202
TOTAL EQUITY (See Statement of Equity)15,425 14,306TOTAL EQUITY (See Statement of Equity)21,15820,889
TOTAL LIABILITIES AND EQUITY$48,111 $48,255TOTAL LIABILITIES AND EQUITY$66,331$69,065
The accompanying notes are an integral part of these financial statements.
 





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Consolidated Edison, Inc.
Consolidated Statement of Equity
 
(In Millions)Common Stock
Additional
Paid-In
Capital
Retained
Earnings
Treasury Stock
Capital
Stock
Expense
Accumulated
Other
Comprehensive
Income/(Loss)
Noncontrolling
Interest
 
SharesAmountSharesAmountTotal
BALANCE AS OF DECEMBER 31, 2014293$32$4,991$8,69123
$(1,032)$(61)$(45)$9$12,585
Net income   1,193     1,193
Common stock dividends   (761)     (761)
Issuance of common shares for stock plans, net of repurchases—
 39 —
(6)   33
Other comprehensive income       11 11
Noncontrolling interest        
—
BALANCE AS OF DECEMBER 31, 2015293$32$5,030$9,12323
$(1,038)$(61)$(34)$9$13,061
Net income   1,245     1,245
Common stock dividends   (809)     (809)
Issuance of common shares - public offering101723   (22)  702
Issuance of common shares for stock plans2 101 

   101
Other comprehensive income       7 7
Noncontrolling interest        (1)(1)
BALANCE AS OF DECEMBER 31, 2016305$33$5,854$9,55923
$(1,038)$(83)$(27)$8$14,306
Net income


1,525




1,525
Common stock dividends


(849)




(849)
Issuance of common shares - public offering51344


(2)

343
Issuance of common shares for stock plans

100





100
Other comprehensive income






1
1
Noncontrolling interest







(1)(1)
BALANCE AS OF DECEMBER 31, 2017310$34$6,298$10,23523
$(1,038)$(85)$(26)$7$15,425
(In Millions, except for dividends per share)Common Stock
Additional
Paid-In
Capital
Retained
Earnings
Treasury Stock
Capital
Stock
Expense
Accumulated
Other
Comprehensive
Income/(Loss)
Non-controlling
Interest
SharesAmountSharesAmountTotal
BALANCE AS OF DECEMBER 31, 2020342$36$8,808$11,17823$(1,038)$(112)$(25)$218$19,065
Net income (loss)1,346(153)1,193
Common stock dividends ($3.10 per share)(1,079)(1,079)
Issuance of common shares - public offering101775(10)766
Issuance of common shares for stock plans2127127
Other comprehensive income3030
Distributions to noncontrolling interests(23)(23)
Net proceeds from sale of equity interest257257
BALANCE AS OF DECEMBER 31, 2021354$37$9,710$11,44523$(1,038)$(122)$5$299$20,336
Net income (loss)1,660(60)1,600
Common stock dividends ($3.16 per share)(1,120)(1,120)
Issuance of common shares for stock plans19393
Other comprehensive income1717
Distributions to noncontrolling interests(37)(37)
BALANCE AS OF DECEMBER 31, 2022355$37$9,803$11,98523$(1,038)$(122)$22$202$20,889
Net income (loss)2,519(3)2,516
Common stock dividends ($3.24 per share)(1,127)(1,127)
Issuance of common shares for stock plans18989
Common stock repurchases(11)(31)11(979)(1,010)
Distributions to noncontrolling interests(4)(4)
Disposal of Clean Energy Businesses(195)(195)
BALANCE AS OF DECEMBER 31, 2023345$37$9,861$13,37734$(2,017)$(122)$22$—$21,158
The accompanying notes are an integral part of these financial statements.
 





CON EDISON ANNUAL REPORT 201720239189




Consolidated Edison, Inc.
Consolidated Statement of Capitalization
 
Shares outstanding
December 31,
 At December 31,
(In Millions)2017
 2016
 2017 2016
TOTAL EQUITY BEFORE ACCUMULATED OTHER COMPREHENSIVE LOSS310
 305
 $15,444 $14,325
(In Millions)
(In Millions)
TOTAL EQUITY BEFORE ACCUMULATED OTHER COMPREHENSIVE INCOME
TOTAL EQUITY BEFORE ACCUMULATED OTHER COMPREHENSIVE INCOME
TOTAL EQUITY BEFORE ACCUMULATED OTHER COMPREHENSIVE INCOME
Pension plan liability adjustments, net of taxes
Pension plan liability adjustments, net of taxes
Pension plan liability adjustments, net of taxes    (23) (24)
Unrealized 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    (3) (3)
TOTAL ACCUMULATED OTHER COMPREHENSIVE LOSS, NET OF TAXES    (26) (27)
Unrealized 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
Unrealized 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, NET OF TAXES
TOTAL ACCUMULATED OTHER COMPREHENSIVE INCOME, NET OF TAXES
TOTAL ACCUMULATED OTHER COMPREHENSIVE INCOME, NET OF TAXES
Equity
Equity
Equity    15,418 14,298
Noncontrolling interest    7 8
Noncontrolling interest
Noncontrolling interest
TOTAL EQUITY (See Statement of Equity)    $15,425 $14,306
TOTAL EQUITY (See Statement of Equity)
TOTAL EQUITY (See Statement of Equity)
The accompanying notes are an integral part of these financial statements.
 

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Consolidated Edison, Inc.
Consolidated Statement of Capitalization

LONG-TERM DEBT (Millions of Dollars)
    At December 31,
MaturityInterest Rate Series 2017 2016
DEBENTURES:       
20185.85 2008A 600 600
20186.15 2008A 50 50
20187.125 2008C 600 600
20194.96 2009A 60 60
20196.65 2009B 475 475
20204.45 2010A 350 350
20202.00 2017A 400 —
20212.00 2016A 500 500
20243.30 2014B 250 250
20262.90 2016B 250 250
20276.50 1997F 80 80
20273.125 2017B 350 —
20335.875 2003A 175 175
20335.10 2003C 200 200
20345.70 2004B 200 200
20355.30 2005A 350 350
20355.25 2005B 125 125
20365.85 2006A 400 400
20366.20 2006B 400 400
20365.70 2006E 250 250
20376.30 2007A 525 525
20386.75 2008B 600 600
20396.00 2009B 60 60
20395.50 2009C 600 600
20405.70 2010B 350 350
20405.50 2010B 115 115
20424.20 2012A 400 400
20433.95 2013A 700 700
20444.45 2014A 850 850
20454.50 2015A 650 650
20454.95 2015A 120 120
20454.69 2015B 100 100
20463.85 2016A 550 550
20463.88 2016A 75 75
20473.875 2017A 500 —
20544.625 2014C 750 750
20564.30 2016C 500 500
20574.00 2017C 350 —
TOTAL DEBENTURES    13,860 12,260


LONG-TERM DEBT (Millions of Dollars)
  At December 31,
MaturityInterest RateSeries20232022
DEBENTURES:
20230.652020A$—$650
20243.302014B250250
20262.902016B250250
20276.501997F8080
20273.1252017B350350
20283.802018A300300
20284.002018D500500
20292.942019B4444
20303.352020A600600
20302.022020A3535
20312.402021A900900
20312.312021A4545
20325.702022A100100
20335.8752003A175175
20335.102003C200200
20335.202023A500—
20345.702004B200200
20345.502023B600—
20355.302005A350350
20355.252005B125125
20365.852006A400400
20366.202006B400400
20365.702006E250250
20376.302007A525525
20386.752008B600600
20396.002009B6060
20395.502009C600600
20393.462019C3838
20405.702010B350350
20405.502010B115115
20424.202012A400400
20433.952013A700700
20444.452014A850850
20454.502015A650650
20454.952015A120120
20454.692015B100100
20463.852016A550550
20463.882016A7575
20473.8752017A500500
20484.652018E600600
20484.352018A125125
20484.352018B2525
20494.1252019A700700
20493.732019A4343
20503.952020B1,0001,000
20503.242020B4040
20513.172021B3030
20513.202021C600600
20526.152022A700700
20535.902023C900—
20536.592023A50—
CON EDISON ANNUAL REPORT 201720239391




20544.6252014C750750
20564.302016C500500
20574.002017C350350
20584.502018B700700
20593.702019B600600
20603.002020C600600
20613.602021B750750
TOTAL DEBENTURES$21,950$20,550
Consolidated Edison, Inc.
Consolidated Statement of Capitalization
 
LONG-TERM DEBT (Millions of Dollars)
LONG-TERM DEBT (Millions of Dollars)
    At December 31,
LONG-TERM DEBT (Millions of Dollars)
  At December 31,
MaturityInterest Rate Series 2017
 2016
MaturityInterest RateSeries20232022
TAX-EXEMPT DEBT - Notes issued to New York State Energy Research and Development Authority for Facilities Revenue Bonds (a):    
20322.45% 2004B Series 1 $127 $127
20341.834 1999A 293 293
20351.68 2004B Series 2 20 20
TAX-EXEMPT DEBT - Notes issued to New York State Energy Research and Development Authority for Facilities Revenue Bonds:
20361.796 2001B 98 98
2036
20361.715 2010A 225 2253.92(a)2010A$225
20391.943 2004A 98 9820393.83(a)2004C99
20391.663 2004C 99 9920393.80(a)2005A126
20391.627 2005A 126 126
TOTAL TAX-EXEMPT DEBTTOTAL TAX-EXEMPT DEBT   1,086 1,086TOTAL TAX-EXEMPT DEBT 450
PROJECT DEBT:    
2024-2032Variable - 4.52% Coram 170 180
PROJECT DEBT (b):
2023
2023
20236.91(c)Copper Mountain Solar 2—179
2025
2025
20256.91(c)Copper Mountain Solar 3—229
202620265.92(c)CED Southwest—408
202820284.41Wind Holdings—87
202820286.48(c)Copper Mountain Solar 1—41
202820286.42(c)CED California Texas—236
203120312.24 - 3.03(d)Mesquite Solar 1—149
2031-20385.25 - 4.95 Texas Solar 4 61 642031-20385.25 - 4.95(d)Texas Solar 4—49
20363.94 California Solar 2 110 11420363.94California Solar 2—86
20364.07 California Solar 3 93 9520364.07California Solar 3—77
203720374.78California Solar—168
203820383.82California Solar 4—265
203920394.82Broken Bow II6264
20404.53 Texas Solar 5 155 15820404.53Texas Solar 5—132
20414.21 Texas Solar 7 214 21820414.21Texas Solar 7—180
20424.45 Upton County Solar 97 —
20424.45Upton County Solar—81
204620463.77CED Nevada Virginia—228
Other project debt 15 16
Other project debt
Other project debt—6
TOTAL PROJECT DEBTTOTAL PROJECT DEBT   915 845
Long-term debt - Variable rate term loan —
 400
TOTAL PROJECT DEBT
TOTAL PROJECT DEBT 622,665
Other long-term debt
Other long-term debt
Other long-term debtOther long-term debt 310 317—(1)
Unamortized debt expenseUnamortized debt expense (113) (107)Unamortized debt expense(162)(172)
Unamortized debt discountUnamortized debt discount   (29) (27)Unamortized debt discount (60)(51)
TOTAL 16,029 14,774TOTAL22,24023,441
Less: Long-term debt due within one yearLess: Long-term debt due within one year   1,298 39Less: Long-term debt due within one year 2511,002
TOTAL LONG-TERM DEBTTOTAL LONG-TERM DEBT   14,731 14,735TOTAL LONG-TERM DEBT 21,98922,439
Less: Held for sale project debt, net (b)Less: Held for sale project debt, net (b)622,292
TOTAL LONG-TERM DEBT EXCLUDING HELD FOR SALETOTAL LONG-TERM DEBT EXCLUDING HELD FOR SALE21,92720,147
TOTAL CAPITALIZATIONTOTAL CAPITALIZATION   $30,149 $29,033TOTAL CAPITALIZATION $43,085$40,834
(a) Rates are to be reset weekly or by auction held every 35 days;weekly; December 31, 20172023 rates shown.
(b) On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note W and X.
(c) March 1, 2023 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.
(d) Range of rates shown reflect multiple tranches associated with the debt.
The accompanying notes are an integral part of these financial statements.
 




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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, 2017,2023, 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, 2017.2023.
The effectiveness of the Company’s internal control over financial reporting as of December 31, 2017,2023, 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
/s/ John McAvoy
John McAvoy
Chairman and Chief Executive Officer
/s/ Robert Hoglund
Robert Hoglund
Senior Vice President and Chief Financial Officer
February 15, 20182024
 





CON EDISON ANNUAL REPORT 201720239593




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)“Company”) as listed in the accompanying 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, 2017,2023, 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, 20172023 and 2016,2022, and the results of theirits operations and theirits cash flows for each of the three years in the period ended December 31, 20172023 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, 2017,2023, 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 overOver 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")(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 consolidatedfinancial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of theconsolidated 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.


96CON EDISON ANNUAL REPORT 2017




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

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CON EDISON ANNUAL REPORT 2023


become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.



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, 2023, there were $4,568 million of deferred costs included in regulatory assets and $4,925 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 15, 20182024

We have served as the Company’s auditor since 1938.





CON EDISON ANNUAL REPORT 201720239795




Consolidated Edison Company of New York, Inc.
Consolidated Income Statement
 
For the Years Ended December 31, For the Years Ended December 31,
(Millions of Dollars)2017 2016
 2015(Millions of Dollars)202320222021
OPERATING REVENUES   
Electric$7,972 $8,106 $8,172
Electric
Electric$10,078$9,751$8,806
Gas1,901 1,508 1,527Gas2,8292,9242,378
Steam595 551 629Steam569593532
TOTAL OPERATING REVENUES10,468 10,165 10,328TOTAL OPERATING REVENUES13,47613,26811,716
OPERATING EXPENSES   
Purchased power
Purchased power
Purchased power1,415 1,568 1,7192,2942,2011,633
Fuel216 172 248Fuel282356229
Gas purchased for resale510 319 337Gas purchased for resale677869541
Other operations and maintenance2,670 2,806 2,881Other operations and maintenance3,1763,0422,452
Depreciation and amortization1,195 1,106 1,040Depreciation and amortization1,9241,7781,705
Taxes, other than income taxes2,057 1,932 1,856Taxes, other than income taxes2,9462,8872,696
TOTAL OPERATING EXPENSES8,063 7,903 8,081TOTAL OPERATING EXPENSES11,29911,1339,256
OPERATING INCOME2,405 2,262 2,247OPERATING INCOME2,1772,1352,460
OTHER INCOME (DEDUCTIONS)   
Investment and other income14 8 5
Investment and other income
Investment and other income75937616
Allowance for equity funds used during construction10 8 4Allowance for equity funds used during construction221819
Other deductions(17) (16) (14)Other deductions(49)(62)(143)
TOTAL OTHER INCOME (DEDUCTIONS)7 —
 (5)TOTAL OTHER INCOME (DEDUCTIONS)732332(108)
INCOME BEFORE INTEREST AND INCOME TAX EXPENSE2,412 2,262 2,242INCOME BEFORE INTEREST AND INCOME TAX EXPENSE2,9092,4672,352
INTEREST EXPENSE   
INTEREST EXPENSE (INCOME)
Interest on long-term debt615 588 567
Other interest14 19 19
Interest on long-term debt
Interest on long-term debt886808759
Other interest expenseOther interest expense1084713
Allowance for borrowed funds used during construction(6) (4) (2)Allowance for borrowed funds used during construction(49)(33)(10)
NET INTEREST EXPENSE623 603 584NET INTEREST EXPENSE945822762
INCOME BEFORE INCOME TAX EXPENSE1,789 1,659 1,658INCOME BEFORE INCOME TAX EXPENSE1,9641,6451,590
INCOME TAX EXPENSE685 603 574INCOME TAX EXPENSE358255246
NET INCOME$1,104 $1,056 $1,084NET INCOME$1,606$1,390$1,344
The accompanying notes are an integral part of these financial statements.
 





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Consolidated Edison Company of New York, Inc.
Consolidated Statement of Comprehensive Income
 
For the Years Ended December 31, For the Years Ended December 31,
(Millions of Dollars)2017 2016 2015(Millions of Dollars)202320222021
NET INCOME$1,104 $1,056 $1,084NET INCOME$1,606$1,390$1,344
OTHER COMPREHENSIVE INCOME, NET OF TAXES 
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAXES
Pension and other postretirement benefit plan liability adjustments, net of taxes1 2 2
TOTAL OTHER COMPREHENSIVE INCOME, NET OF TAXES1 2 2
Pension and other postretirement benefit plan liability adjustments, net of taxes
Pension and other postretirement benefit plan liability adjustments, net of taxes(2)37
Other income, net of taxesOther income, net of taxes—1—
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAXESTOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAXES(2)47
COMPREHENSIVE INCOME$1,105 $1,058 $1,086COMPREHENSIVE INCOME$1,604$1,394$1,351
The accompanying notes are an integral part of these financial statements.
 





CON EDISON ANNUAL REPORT 201720239997




Consolidated Edison Company of New York, Inc.
Consolidated Statement of Cash Flows
  For the Years Ended December��31,
(Millions of Dollars)2017
2016
2015
OPERATING ACTIVITIES   
Net income$1,104$1,056$1,084
PRINCIPAL NON-CASH CHARGES/(CREDITS) TO INCOME   
Depreciation and amortization1,1951,1061,040
Deferred income taxes575545449
Rate case amortization and accruals(142)(227)(74)
Common equity component of allowance for funds used during construction(10)(8)(4)
Other non-cash items, net(61)(31)(27)
CHANGES IN ASSETS AND LIABILITIES   
Accounts receivable - customers15(23)87
Materials and supplies, including fuel oil and gas in storage(17)1824
Other receivables and other current assets8(11)38
Accounts receivables from affiliated companies4581(58)
Prepayments(8)1313
Accounts payable12520(51)
Accounts payable to affiliated companies—
(2)(11)
Pensions and retiree benefits obligations, net370579714
Pensions and retiree benefits contributions(420)(476)(703)
Superfund and environmental remediation costs, net(12)7919
Accrued taxes5213
Accrued taxes to affiliated companies(47)117(8)
Accrued interest2(7)1
System benefit charge8522138
Deferred charges, noncurrent assets and other regulatory assets2,212(172)(150)
Deferred credits and other regulatory liabilities(2,242)179379
Other current and noncurrent liabilities37(20)16
NET CASH FLOWS FROM OPERATING ACTIVITIES2,8663,0382,819
INVESTING ACTIVITIES   
Utility construction expenditures(2,840)(2,672)(2,410)
Cost of removal less salvage(240)(203)(212)
Proceeds from the transfer of assets to NY Transco—
122
—
Restricted cash214(16)
NET CASH FLOWS USED IN INVESTING ACTIVITIES(3,078)(2,739)(2,638)
FINANCING ACTIVITIES   
Net (payment)/issuance of short-term debt(450)(433)583
Issuance of long-term debt1,2001,300650
Retirement of long-term debt—
(650)(350)
Debt issuance costs(15)(13)(7)
Capital contribution by parent30110013
Dividend to parent(796)(744)(872)
NET CASH FLOWS FROM/(USED IN) FINANCING ACTIVITIES240(440)17
CASH AND TEMPORARY CASH INVESTMENTS:   
NET CHANGE FOR THE PERIOD28(141)198
BALANCE AT BEGINNING OF PERIOD702843645
BALANCE AT END OF PERIOD$730$702$843
    
SUPPLEMENTAL DISCLOSURE OF CASH INFORMATION   
Cash paid/(received) during the period for:   
Interest$602$581$554
Income taxes$108$(162)$163
SUPPLEMENTAL DISCLOSURE OF NON-CASH INFORMATION   
Construction expenditures in accounts payable$351$295$210
  For the Years Ended December 31,
(Millions of Dollars)202320222021
OPERATING ACTIVITIES
Net income$1,606$1,390$1,344
PRINCIPAL NON-CASH CHARGES/(CREDITS) TO INCOME
Depreciation and amortization1,9241,7781,705
Deferred income taxes55685124
Rate case amortization and accruals7255(16)
Other non-cash items, net(40)14830
CHANGES IN ASSETS AND LIABILITIES
Accounts receivable - customers(270)(268)(412)
Allowance for uncollectible accounts - customers3910166
Materials and supplies, including fuel oil and gas in storage18(71)(78)
Revenue decoupling mechanism receivable(26)27(62)
Other receivables and other current assets(136)111(161)
Accounts receivables from/(to) affiliated companies(100)(8)96
Unbilled revenue and net unbilled revenue deferrals(47)(28)(16)
Prepayments(106)(11)(53)
Accounts payable(137)32265
Accounts payable to affiliated companies(1)(1)(4)
Pensions and retiree benefits obligations, net(204)182283
Pensions and retiree benefits contributions(33)(26)(433)
Superfund and environmental remediation costs(12)(20)(18)
Accrued taxes(35)15(54)
Accrued taxes from/(to) affiliated companies(88)799
Accrued interest2571
Deferred charges, noncurrent assets, leases, net and other regulatory assets(1,158)(852)(484)
Deferred credits, noncurrent liabilities and other regulatory liabilities199332210
Other current liabilities2397(56)
NET CASH FLOWS FROM OPERATING ACTIVITIES2,2853,2632,186
INVESTING ACTIVITIES
Utility construction expenditures(4,059)(3,596)(3,413)
Cost of removal less salvage(380)(330)(316)
NET CASH FLOWS USED IN INVESTING ACTIVITIES(4,439)(3,926)(3,729)
FINANCING ACTIVITIES
Net (payment)/issuance of short-term debt(397)939(299)
Issuance of long-term debt2,0007002,250
Retirement of long-term debt——(640)
Debt issuance costs(31)(12)(27)
Capital contribution by Con Edison1,7201501,100
Dividend to Con Edison(1,056)(978)(988)
NET CASH FLOWS FROM FINANCING ACTIVITIES2,2367991,396
CASH, TEMPORARY CASH INVESTMENTS, AND RESTRICTED CASH
NET CHANGE FOR THE PERIOD82136(147)
BALANCE AT BEGINNING OF PERIOD1,0569201,067
BALANCE AT END OF PERIOD$1,138$1,056$920
SUPPLEMENTAL DISCLOSURE OF CASH INFORMATION
Cash paid/(received) during the period for:
Interest$882$755$739
Income taxes$(27)$87$5
SUPPLEMENTAL DISCLOSURE OF NON-CASH INFORMATION
Construction expenditures in accounts payable$564$561$406
Software licenses acquired but unpaid as of end of period$—$2$22
Equipment acquired but unpaid as of end of period$11$17$22
The accompanying notes are an integral part of these financial statements.

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Consolidated Edison Company of New York, Inc.
Consolidated Balance Sheet
 
(Millions of Dollars)December 31, 2017
 December 31, 2016
(Millions of Dollars)December 31, 2023December 31, 2022
ASSETS   
CURRENT ASSETS   
CURRENT ASSETS
CURRENT ASSETS
Cash and temporary cash investments$730 $702
Accounts receivable – customers, less allowance for uncollectible accounts of $58 and $65 in 2017 and 2016, respectively1,009 1,032
Other receivables, less allowance for uncollectible accounts of $7 and $13 in 2017 and 2016, respectively92 81
Cash and temporary cash investments
Cash and temporary cash investments$1,138$1,056
Accounts receivable – customers, net allowance for uncollectible accounts of $353 and $314 in 2023 and 2022, respectively
Accounts receivable – customers, net allowance for uncollectible accounts of $353 and $314 in 2023 and 2022, respectively
Accounts receivable – customers, net allowance for uncollectible accounts of $353 and $314 in 2023 and 2022, respectively2,3302,099
Other receivables, net allowance for uncollectible accounts of $9 and $7 in 2023 and 2022, respectivelyOther receivables, net allowance for uncollectible accounts of $9 and $7 in 2023 and 2022, respectively332147
Taxes receivable19 —
Taxes receivable—5
Accrued unbilled revenue454 399Accrued unbilled revenue678573
Accounts receivable from affiliated companies64 109Accounts receivable from affiliated companies14646
Fuel oil, gas in storage, materials and supplies, at average cost287 270Fuel oil, gas in storage, materials and supplies, at average cost422440
Prepayments108 100Prepayments329223
Regulatory assets62 90Regulatory assets254286
Restricted cash—
 2
Revenue decoupling mechanism receivable
Revenue decoupling mechanism receivable
Revenue decoupling mechanism receivable190164
Fair value of derivative assetsFair value of derivative assets4951
Other current assets84 95Other current assets113157
TOTAL CURRENT ASSETS2,909 2,880TOTAL CURRENT ASSETS5,9815,247
INVESTMENTS383 315INVESTMENTS608539
UTILITY PLANT AT ORIGINAL COST   
Electric
Electric
Electric27,299 26,12236,80834,636
Gas7,499 6,814Gas13,22612,338
Steam2,473 2,421Steam3,0852,935
General2,753 2,490General4,5303,879
TOTAL40,024 37,847TOTAL57,64953,788
Less: Accumulated depreciation8,321 7,836Less: Accumulated depreciation13,17112,047
Net31,703 30,011Net44,47841,741
Construction work in progress1,502 1,104Construction work in progress2,1682,268
NET UTILITY PLANT33,205 31,115NET UTILITY PLANT46,64644,009
NON-UTILITY PROPERTY   
Non-utility property, less accumulated depreciation of $25 in 2017 and 20164 4
Non-utility property, net accumulated depreciation of $25 in 2023 and 2022
Non-utility property, net accumulated depreciation of $25 in 2023 and 2022
Non-utility property, net accumulated depreciation of $25 in 2023 and 202222
NET PLANT33,209 31,119NET PLANT46,64844,011
OTHER NONCURRENT ASSETS   
Regulatory assets3,863 6,473
Regulatory assets
Regulatory assets4,3143,669
Operating lease right-of-use assetOperating lease right-of-use asset532567
Pension and retiree benefitsPension and retiree benefits3,1843,184
Fair value of derivative assetsFair value of derivative assets4980
Other deferred charges and noncurrent assets87 69Other deferred charges and noncurrent assets284148
TOTAL OTHER NONCURRENT ASSETS3,950 6,542TOTAL OTHER NONCURRENT ASSETS8,3637,648
TOTAL ASSETS$40,451 $40,856TOTAL ASSETS$61,600$57,445
The accompanying notes are an integral part of these financial statements.
 



CON EDISON ANNUAL REPORT 2017202310199




Consolidated Edison Company of New York, Inc.
Consolidated Balance Sheet
 
(Millions of Dollars)December 31, 2017 December 31, 2016
(Millions of Dollars)December 31, 2023December 31, 2022
LIABILITIES AND SHAREHOLDER’S EQUITY  
CURRENT LIABILITIES  
CURRENT LIABILITIES
CURRENT LIABILITIES
Long-term debt due within one year
Long-term debt due within one year
Long-term debt due within one year$1,200 
$—
$250$—
Notes payable150 600Notes payable1,9032,300
Accounts payable1,057 876Accounts payable1,6291,763
Accounts payable to affiliated companies10 10Accounts payable to affiliated companies1617
Customer deposits334 336Customer deposits378341
Accrued taxes102 50Accrued taxes5593
Accrued taxes to affiliated companies72 119Accrued taxes to affiliated companies189
Accrued interest113 111Accrued interest159134
Accrued wages95 91Accrued wages114105
Fair value of derivative liabilities12 66Fair value of derivative liabilities17935
Regulatory liabilities65 90Regulatory liabilities107308
System benefit charge483 398System benefit charge406351
Operating lease liabilitiesOperating lease liabilities116103
Other current liabilities245 242Other current liabilities381397
TOTAL CURRENT LIABILITIES3,938 2,989TOTAL CURRENT LIABILITIES5,6946,036
NONCURRENT LIABILITIES  
Provision for injuries and damages
Provision for injuries and damages
Provision for injuries and damages147 154185177
Pensions and retiree benefits1,140 1,544Pensions and retiree benefits542526
Superfund and other environmental costs637 655Superfund and other environmental costs1,026903
Asset retirement obligations287 227Asset retirement obligations520499
Fair value of derivative liabilities31 33Fair value of derivative liabilities1089
Deferred income taxes and unamortized investment tax credits5,306 9,450Deferred income taxes and unamortized investment tax credits7,9847,144
Operating lease liabilitiesOperating lease liabilities429475
Regulatory liabilities4,219 1,712Regulatory liabilities4,8185,481
Other deferred credits and noncurrent liabilities242 190Other deferred credits and noncurrent liabilities338237
TOTAL NONCURRENT LIABILITIES12,009 13,965TOTAL NONCURRENT LIABILITIES15,95015,451
LONG-TERM DEBT12,065 12,073LONG-TERM DEBT20,81019,080
COMMON SHAREHOLDER’S EQUITY (See Statement of Shareholder’s Equity)12,439 11,829
COMMITMENTS AND CONTINGENCIES (Note B and Note G)COMMITMENTS AND CONTINGENCIES (Note B and Note G)
SHAREHOLDER’S EQUITY (See Statement of Shareholder’s Equity)SHAREHOLDER’S EQUITY (See Statement of Shareholder’s Equity)19,14616,878
TOTAL LIABILITIES AND SHAREHOLDER’S EQUITY$40,451 $40,856TOTAL LIABILITIES AND SHAREHOLDER’S EQUITY$61,600$57,445
The accompanying notes are an integral part of these financial statements.
 





102

100
CON EDISON ANNUAL REPORT 20172023





Consolidated Edison Company of New York, Inc.
Consolidated Statement of Shareholder’s Equity
(In Millions)Common Stock
Additional
Paid-In
Capital
Retained
Earnings
Repurchased
Con Edison
Stock
Capital
Stock
Expense
Accumulated
Other
Comprehensive
Income/(Loss)
Total
SharesAmount
BALANCE AS OF DECEMBER 31, 2014235
$589$4,234$7,399$(962)$(61)$(11)$11,188
Net income   1,084   1,084
Common stock dividend to parent   (872)   (872)
Capital contribution by parent  13
    13
Other comprehensive income      22
BALANCE AS OF DECEMBER 31, 2015235
$589$4,247$7,611$(962)$(61)$(9)$11,415
Net income   1,056   1,056
Common stock dividend to parent   (744)   (744)
Capital contribution by parent  100    100
Other comprehensive income      22
BALANCE AS OF DECEMBER 31, 2016235
$589$4,347$7,923$(962)$(61)$(7)$11,829
Net income



$1,104


1,104
Common stock dividend to parent


(796)


(796)
Capital contribution by parent

302

(1)
301
Other comprehensive income 
 



11
BALANCE AS OF DECEMBER 31, 2017235
$589$4,649$8,231$(962)$(62)$(6)$12,439
(In Millions)Common Stock
Additional
Paid-In
Capital
Retained
Earnings
Repurchased
Con Edison
Stock
Capital
Stock
Expense
Accumulated
Other
Comprehensive
Income/(Loss)
Total
SharesAmount
BALANCE AS OF DECEMBER 31, 2020235$589$6,169$9,122$(962)$(62)$(7)$14,849
Net income1,3441,344
Common stock dividend to Con Edison(988)(988)
Capital contribution by Con Edison1,1001,100
Other comprehensive income77
BALANCE AS OF DECEMBER 31, 2021235$589$7,269$9,478$(962)$(62)$—$16,312
Net income1,3901,390
Common stock dividend to Con Edison(978)(978)
Capital contribution by Con Edison150150
Other comprehensive income44
BALANCE AS OF DECEMBER 31, 2022235$589$7,419$9,890$(962)$(62)$4$16,878
Net income1,6061,606
Common stock dividend to Con Edison(1,056)(1,056)
Capital contribution by Con Edison1,7201,720
Other comprehensive loss(2)(2)
BALANCE AS OF DECEMBER 31, 2023235$589$9,139$10,440$(962)$(62)$2$19,146
The accompanying notes are an integral part of these financial statements.

CON EDISON ANNUAL REPORT 20172023103101




Consolidated Edison Company of New York, Inc.
Consolidated Statement of Capitalization
 
Shares outstanding   Shares outstanding 
December 31, At December 31, December 31,At December 31,
(In Millions)2017
 2016
 2017 2016(In Millions)2023202220232022
TOTAL SHAREHOLDER’S EQUITY BEFORE ACCUMULATED OTHER COMPREHENSIVE LOSS235
 235
 $12,445 $11,836
TOTAL SHAREHOLDER’S EQUITY BEFORE ACCUMULATED OTHER COMPREHENSIVE INCOMETOTAL SHAREHOLDER’S EQUITY BEFORE ACCUMULATED OTHER COMPREHENSIVE INCOME235 235$19,144$16,874
Pension plan liability adjustments, net of taxes    (3) (4)Pension plan liability adjustments, net of taxes35
Unrealized losses on derivatives qualified as cash flow hedges, less reclassification adjustment for losses included in net income and reclassification adjustment for unrealized losses included in regulatory assets, net of taxes
    (3) (3)
TOTAL ACCUMULATED OTHER COMPREHENSIVE LOSS, NET OF TAXES    (6) (7)
Unrealized 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 taxesUnrealized 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  (1)
TOTAL ACCUMULATED OTHER COMPREHENSIVE INCOME, NET OF TAXESTOTAL ACCUMULATED OTHER COMPREHENSIVE INCOME, NET OF TAXES  24
TOTAL SHAREHOLDER’S EQUITY (See Statement of Shareholder’s Equity)    $12,439 $11,829TOTAL SHAREHOLDER’S EQUITY (See Statement of Shareholder’s Equity)  $19,146$16,878
The accompanying notes are an integral part of these financial statements.
 











































104

102
CON EDISON ANNUAL REPORT 20172023





Consolidated Edison Company of New York, Inc.
Consolidated Statement of Capitalization
LONG-TERM DEBT (Millions of Dollars)
  At December 31,
MaturityInterest RateSeries20232022
DEBENTURES:
20243.302014B$250$250
20262.902016B250250
20273.1252017B350350
20283.802018A300300
20284.002018D500500
20303.352020A600600
20312.402021A900900
20335.8752003A175175
20335.102003C200200
20335.202023A500—
20345.702004B200200
20345.502023B600—
20355.302005A350350
20355.252005B125125
20365.852006A400400
20366.202006B400400
20365.702006E250250
20376.302007A525525
20386.752008B600600
20395.502009C600600
20405.702010B350350
20424.202012A400400
20433.952013A700700
20444.452014A850850
20454.502015A650650
20463.852016A550550
20473.8752017A500500
20484.652018E600600
20494.1252019A700700
20503.952020B1,0001,000
20513.202021C600600
20526.152022A700700
20535.902023C900—
20544.6252014C750750
20564.302016C500500
20574.002017C350350
20584.502018B700700
20593.702019B600600
20603.002020C600600
20613.602021B750750
TOTAL DEBENTURES 20,82518,825
TAX-EXEMPT DEBT – Notes issued to New York State Energy Research and Development Authority for Facilities Revenue Bonds:
20363.92(a)2010A225225
20393.83(a)2004C9999
20393.80(a)2005A126126
TOTAL TAX-EXEMPT DEBT450450
Unamortized debt expense(155)(145)
Unamortized debt discount (60)(50)
TOTAL21,06019,080
Less: Long-term debt due within one year250—
TOTAL LONG-TERM DEBT 20,81019,080
TOTAL CAPITALIZATION$39,956$35,958
LONG-TERM DEBT (Millions of Dollars)
    At December 31,
MaturityInterest Rate Series 2017 2016
DEBENTURES:       
20185.85 2008A 600 600
20187.125 2008C 600 600
20196.65 2009B 475 475
20204.45 2010A 350 350
20243.30 2014B 250 250
20262.90 2016B 250 250
20273.125 2017B 350 —
20335.875 2003A 175 175
20335.10 2003C 200 200
20345.70 2004B 200 200
20355.30 2005A 350 350
20355.25 2005B 125 125
20365.85 2006A 400 400
20366.20 2006B 400 400
20365.70 2006E 250 250
20376.30 2007A 525 525
20386.75 2008B 600 600
20395.50 2009C 600 600
20405.70 2010B 350 350
20424.20 2012A 400 400
20433.95 2013A 700 700
20444.45 2014A 850 850
20454.50 2015A 650 650
20463.85 2016A 550 550
20473.875 2017A 500 —
20544.625 2014C 750 750
20564.30 2016C 500 500
20574.00 2017C 350 —
TOTAL DEBENTURES   12,300 11,100
TAX-EXEMPT DEBT – Notes issued to New York State Energy Research and Development Authority for Facilities Revenue Bonds (a):      
20322.45% 2004B Series 1 127 127
20341.834 1999A 293 293
20351.68 2004B Series 2 20 20
20361.796 2001B 98 98
20361.715 2010A 225 225
20391.943 2004A 98 98
20391.663 2004C 99 99
20391.627 2005A 126 126
TOTAL TAX-EXEMPT DEBT 1,086 1,086
Unamortized debt expense   (94) (87)
Unamortized debt discount   (27) (26)
TOTAL 13,265 12,073
Less: Long-term debt due within one year 1,200 —
TOTAL LONG-TERM DEBT   12,065 12,073
TOTAL CAPITALIZATION $24,504 $23,902
(a) Rates are to be reset weekly or by auction held every 35 days;weekly; December 31, 20172023 rates shown.
The accompanying notes are an integral part of these financial statements.

CON EDISON ANNUAL REPORT 20172023105103




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, whichthat 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 Transmission, Inc. (together with its subsidiaries, Con Edison Transmission) and its former
subsidiary, 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. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note W and Note X. 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 and northern New Jersey and gas service in southeastern New York. Con Edison Clean Energy Businesses, Inc. has three subsidiaries: Consolidated Edison Development, Inc. (Con Edison Development), a company that develops, owns and operates renewable and energy infrastructure projects; Consolidated Edison Energy, Inc. (Con Edison Energy), a company that provides energy-related products and services to wholesale customers; and Consolidated Edison Solutions, Inc. (Con Edison Solutions), a company that provides energy-related products and services to retail customers. Con Edison Transmission Inc. invests in and seeks to develop electric transmission facilitiesprojects through its subsidiary, Consolidated Edison Transmission, LLC, (CET Electric), and investsmanages, through joint ventures, investments in gas pipeline and storage facilities through its subsidiary, Con Edison Gas Pipeline and Storage, LLC (CET Gas).LLC. See "Investments" in Note U.A and Note W.

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CON EDISON ANNUAL REPORT 2023


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 Q)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. TheIn general, the Utilities are receiving or being credited with a return on all of their regulatory assets for which a cash outflow has been made, and are paying or being charged with a return on all of their regulatory liabilities for which a cash inflow has been received. The Utilities’ regulatory assets and liabilities will be recoveredat December 31, 2023 are recoverable from customers, or to be applied for customer benefit, in accordance with rate provisions that have been approved by the applicable state regulators.

Other significant accounting policies of the Companies are referenced below in this Note A and in the notes that follow.


106CON EDISON ANNUAL REPORT 2017
Revenues


CECONY’s electric and gas rate plans and O&R’s New York 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:
              For the Years Ended December 31,
(Millions of Dollars)202320222021
Con Edison$409$400$358
CECONY396387346

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 R.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
CON EDISON ANNUAL REPORT 2023105


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 5.55.9 percent, 4.75.2 percent and 4.44.5 percent for 2017, 20162023, 2022 and 2015,2021, respectively. The AFUDC rates for O&R were 2.56.2 percent, 3.55.0 percent and 0.44.8 percent for 2017, 20162023, 2022 and 2015,2021, 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 3.13.6 percent for 2017, 20162023 and 2015.3.5 percent for 2022 and 3.5 percent for 2021. The average depreciation rates for O&R were 2.93.1 percent for 20172023, 3.0 percent for 2022 and 2016 and 3.03.1 percent for 2015.2021.

The estimated lives for utility plant for CECONY range from 5 to 9580 years for electric, 5 to 10090 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, 20172023 and 2016,2022, the capitalized cost of the Companies’ utility plant, net of accumulated depreciation, was as follows:
                   Con Edison                 CECONY
(Millions of Dollars)2017 2016 2017 2016
Electric       
Generation$544 $479 $544 $479
Transmission3,210 3,184 2,990 2,963
Distribution18,959 18,150 17,996 17,234
Gas (a)6,976 6,285 6,403 5,749
Steam1,798 1,882 1,798 1,882
General2,105 1,816 1,905 1,639
Held for future use76 74 67 65
Construction work in progress1,605 1,175 1,502 1,104
Net Utility Plant$35,273 $33,045 $33,205 $31,115
                   Con Edison                CECONY
(Millions of Dollars)2023202220232022
Electric
Generation$580$534$580$534
Transmission4,6524,2234,3333,916
Distribution24,49123,34523,23822,130
General141113141113 
Gas (a)12,02311,32611,22610,567
Steam1,9901,9621,9901,962
General3,1582,6482,8602,410
Held for future use118117110109
Construction work in progress2,4422,4842,1682,268
Net Utility Plant$49,594$46,752$46,646$44,009
(a) Primarily distribution.
General utility plant of Con Edison and CECONY included $65 million and $62 million, respectively, at December 31, 2023, and $72 million and $69 million, respectively, at December 31, 2022, 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 $38 million and $36 million, respectively, at December 31, 2023 and $31 million and $29 million, respectively, at December 31, 2022.

Under the Utilities’ rate plans, the aggregate annual depreciation allowance for the period ended December 31, 20172023 was $1,253$2,030 million, including $1,184$1,925 million under CECONY’s electric, gas and steam rate plans that have been approved by the New York State Public Service Commission (NYSPSC).NYSPSC.
Non–Non–Utility Plant
Non-utility plant is stated at original cost. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note W and X. For Con Edison, non–utilitynon-utility plant consistsconsisted primarily of the Clean Energy Businesses’ renewable electric productionprojects. Property, plant and gas storage. 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.

For the Utilities, non–utilitynon-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.


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CON EDISON ANNUAL REPORT 2023


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:

Con EdisonCECONY
(Millions of Dollars)2023202220232022
Prepayments (a)(b)$50$24$49$23
Other Deferred Charges and Noncurrent Assets (a)(b)179105178103
(a) Amortization on these assets is computed using the straight-line method for financial statement purposes over their estimated useful lives, which range from 3lives.
(b) Amortization expense related to 30 years.

CON EDISON ANNUAL REPORT 2017107


Goodwill
these assets incurred during the year ended December 31, 2023 for Con Edison tests goodwilland CECONY was $21 million and $20 million, respectively, 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 two–step, quantitative goodwill impairment test.year ended December 31, 2022 for Con Edison has elected to performand CECONY was $15 million and $14 million, respectively, and for the qualitative assessmentyear ended December 31, 2021 for substantially all of its goodwill and, if needed, applies the two-step quantitative approach. The first step of 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, the second step is performed to measure the amount of impairment loss, if any. The second step requires a calculation of the implied fair value of goodwill. In 2017, Con Edison recorded no impairment charge on goodwill. See Note K.and CECONY was $12 million and $11 million, respectively. Accumulated amortization related to these assets for Con Edison and CECONY was $58 million and $53 million, respectively at December 31, 2023 and was $37 million and $33 million, respectively at December 31, 2022.
Long–
Long–Lived and Intangible Assets
Con Edison evaluates the impairment ofThe Companies test long-lived assets and intangible assets with definite lives, based on projections of undiscounted future cash flows, wheneverfor recoverability when events or changes in circumstances indicate that the carrying amountsvalue of suchlong-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 an evaluationa 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. In 2015, Con Edison recorded a $5 million impairment charge on

Prior to the assets held for sale of Pike County Light & Power Company (Pike), a former O&R subsidiary that was sold in August 2016 (see Note U). No impairment chargesthe Clean Energy Businesses on long-lived assets were recognized in 2017 or 2016. No impairment charges onMarch 1, 2023, Con Edison's intangible assets with definite lives were recognized in 2017, 2016, or 2015. For information about the Companies'consisted primarily of power purchase agreements. See Note W and Note X. Con Edison's intangible assets see Note K.
Revenues
The Utilitieswere immaterial at December 31, 2023. At December 31, 2022, intangible assets arising from power purchase agreements were $1,219 million, net of accumulated amortization of $359 million, and were being amortized over the life of each agreement. Excluding power purchase agreements, Con Edison’s other intangible assets were $2 million, net of accumulated amortization of $9 million at December 31, 2022. CECONY’s other intangible assets were immaterial at December 31, 2023 and 2022. Con Edison Solutions, until the salerecorded amortization expense related to its intangible assets of its retail electric supply business$71 million in September 2016 (see Note U), recognize revenues as energy is delivered to customers. The Utilities accrue2022 and $95 million in 2021. Con Edison Solutions accrued revenues at the end of each month for estimated energy not yet billed to customers. The Utilities defer over a 12–month period net interruptible gas revenues, other than those authorized by the NYSPSCexpects amortization expense to be retained by the Utilities, for refund to firm gas sales and transportation customers. Con Edison Development recognizes revenue for the sale of energy from renewable electric production projects as energy is generated and billed to counterparties. Con Edison Development accrues revenues at the end of each month for energy not yet billed to counterparties. Con Edison Energy recognizes 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. Con Edison Solutions recognizes revenue for providing energy-efficiency services to government and commercial customers, and Con Edison Development recognizes revenue for the engineering, procurement and construction of Upton 2, under the percentage-of-completion method of revenue recognition.

Sales and profits on each percentage-of-completion contract are recorded 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 sales 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. Unbilled contract revenues were $58 million and $21 million as of December 31, 2017 and 2016, respectively, and represent accumulated incurred costs and earned profits on contracts (revenue arrangements), which have been recorded as revenues, but have not yet been billed to customers. Substantially all unbilled contract revenues are expected to be collected within one year. Unbilled contract revenues arise from the cost-to-cost method of revenue recognition. Unbilled contract revenues from fixed-price type contracts are 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. Unearned revenue, which reflects a liability for billings to customers in excess of earned revenue was $87 million and $2 million as of December 31, 2017 and 2016, respectively.

Revenues recorded as energy is delivered, generated or services provided and billed to customers are recorded in accounts receivable – customers. 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.

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CECONY’s electric and gas rate plans and O&R’s New York electric and gas rate plans each contain a revenue decoupling mechanism 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 withinimmaterial over each of the respective NYSPSC approved rate plans. Total excise taxes (inclusive of gross receipts taxes)next five years. No impairment charges were recorded on Con Edison's long-lived assets or intangible assets with definite lives in operating revenues were as follows:
              For the Years Ended December 31,
(Millions of Dollars)2017 2016 2015
Con Edison$302 $336 $354
CECONY292 316 331

For information about changes to the accounting rules for revenue recognition, see Note T.2023, 2022 and 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 and costs of its electric demand management programs 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–month12-month period ending each August are charged or refunded to customers during a subsequent 12–month12-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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Temporary Cash Investments
Temporary cash investments are short-term, highly–liquidhighly-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 and the Clean Energy Businesses 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 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 Transmission 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 for a total of $1,225 million, of which $629 million was attributed to Con Edison Transmission for its 50 percent interest.

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 during 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, and that the carrying value at June 30, 2021 reflected the final sales price received, including closing adjustments. Con Edison Transmission had no remaining investment in Stagecoach as of December 31, 2021.

Investment in Mountain Valley Pipeline, LLC (MVP)
In January 2016, a subsidiary of Con Edison Transmission, acquired a 12.5 percent interest in MVP, a company developing a proposed 300-mile gas transmission project (the Mountain Valley Pipeline) in West Virginia and Virginia. During 2019, Con Edison exercised its right to limit, and did limit, its cash contributions to the joint venture to approximately $530 million, that reduced Con Edison Transmission's interest in MVP to 11.3 percent, 10.2 percent, and 9.6 percent as of December 31, 2020, 2021, and 2022, respectively. As of December 31, 2023 Con Edison Transmission's interest in MVP is 7.9 percent and is expected to be reduced to approximately 7.0 percent based on Con Edison Transmission's previous capping of its cash contributions. As of December 31, 2023, the Mountain Valley Pipeline was approximately 97 percent complete.

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During 2020, the uncertainty related to obtaining necessary water crossing permits, the resulting costs and the likelihood of the Mountain Valley Pipeline 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 Mountain Valley Pipeline 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 Mountain Valley Pipeline. See Note U. Con Edison had 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 Mountain Valley Pipeline 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 Mountain Valley Pipeline faced legal and regulatory challenges that could have made construction completion increasingly remote. The likelihood that the project will be completed and, for 2020, the discount rate, were the most significant and sensitive assumptions; changes in these assumptions may have materially changed 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 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 equity in earnings from allowance for funds used during construction from MVP beginning in January 2021 and refrained from recording such amounts during 2021, 2022 and a portion of 2023 until substantial construction activities resumed. Con Edison recorded equity in earnings from AFUDC from MVP of $33 million for the year ended December 31, 2023 and expects to continue to recognize its proportionate share of equity in earnings from AFUDC until the project is placed in service, subject to the progression of construction activities. There were no impairments to the carrying value of Con Edison's investment in MVP for the years ended December 31, 2022 and 2023.

In June 2023, federal legislation to raise the U.S. debt ceiling included provisions declaring the Mountain Valley Pipeline to be in the national interest, expediting the permitting process and moving jurisdiction of challenges of permits to the D.C. Circuit Court of Appeals, from the 4th Circuit Court of Appeals. These actions enabled construction activities to resume in June 2023 and continue without substantial interruption for the duration of 2023.

There is risk that the fair value of Con Edison’s investment in MVP may be further impaired in the future. Assumptions and estimates used to test Con Edison’s investment in MVP for impairment may change if adverse developments impacting the construction of the Mountain Valley Pipeline were to occur.

CON EDISON ANNUAL REPORT 2023109


Summary of Investment Balances
The following investment assets are included in the Companies' consolidated balance sheets at December 31, 20172023 and 2016:2022:



Con EdisonCECONY
(Millions of Dollars)2023202220232022
Con Edison Transmission investment in MVP (a)$144$111$—$—
Supplemental retirement income plan assets (b)524459502439
Deferred income plan assets99939993
Con Edison Transmission's investment in New York Transco (c)221176— — 
Virginia Tax Equity Projects (d)8— — — 
Other3277
Total investments$999$841$608$539
(a)At December 31, 2023 and 2022, Con Edison Transmission's cash investment in MVP was $530 million. In January 2024, the operator of the Mountain Valley Pipeline indicated that it is targeting an in-service date for the project in the first quarter of 2024 at an overall project cost of approximately $7,200 million excluding allowance for funds used during construction. See "Investment in Mountain Valley Pipeline, LLC (MVP)" above.
CON EDISON ANNUAL REPORT 2017109

(b)See Note E.

(c)Con Edison Transmission owns a 45.7 percent interest in New York Transco's TOTS and NYES projects and a 41.7 percent interest in New York Transco's share of the Propel NY Energy project.
(d)See Note S.
 Con Edison CECONY
(Millions of Dollars)2017 2016 2017
 2016
CET Gas investment in Stagecoach Gas Services, LLC (a)$971 $992 
$—
 
$—
Con Edison Development equity method investments (b)467 488 —
 —
Supplemental retirement income plan assets (c)330 273 301 246
CET Gas investment in Mountain Valley Pipeline, LLC (a)98 48 —
 —
Deferred income plan assets73 60 73 60
CET Electric investment in New York Transco, LLC (a)53 51 —
 —
Other9 9 9 9
Total investments$2,001 $1,921 $383 $315

(a)See Note U.
(b)See Note Q.
(c)See Note E.
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–year15-year period and other actuarial gains and losses are recognized in expense over a 10–year10-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 amounts for such expenses reflected in rates. Generally, 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.


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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. Upon enactment of the Tax Cuts and Jobs Act of 2017 on December 22, 2017 (the TCJA), the Companies re-measured their deferred tax assets and liabilities based upon the 21 percent corporate income tax rate under the TCJA. As a result, Con Edison decreased its net deferred tax liabilities by $5,312 million (including $4,781 million for CECONY), recognized net income of $259 million, decreased its regulatory asset for future income tax by $1,250 million (including $1,182 million for CECONY), decreased its regulatory asset for revenue taxes by $90 million (including $86 million for CECONY), and accrued a regulatory liability for future income tax of $3,713 million (including $3,513 million for CECONY). See “Other Regulatory Matters” and “Regulatory Assets and Liabilities” in Note B and Note L.

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:
                   For the Years Ended December 31,
(Millions of Dollars)2017 2016 2015
Con Edison$24 $24 $23
CECONY23 22 22

Reclassification
Certain prior yearperiod amounts have been reclassified to conform with the current yearperiod presentation.

Earnings Per Common Share
Con Edison presents basic and diluted earnings per share (EPS) on the face of its consolidated income statement. Basic earnings per share (EPS) areEPS is calculated by dividing earnings available to common shareholders (“Net income”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. Seeprice (see Note M.

CON EDISON ANNUAL REPORT 2017111


O).
Basic and diluted EPS for Con Edison are calculated as follows:
               For the Years Ended December 31,
(Millions of Dollars, except per share amounts/Shares in Millions)202320222021
Net income for common stock$2,519$1,660$1,346
Weighted average common shares outstanding – basic347.7354.5348.4
Add: Incremental shares attributable to effect of potentially dilutive securities1.61.31.0
Adjusted weighted average common shares outstanding – diluted349.3355.8349.4
Net Income per common share – basic$7.25$4.68$3.86
Net Income per common share – diluted$7.21$4.66$3.85
                For the Years Ended December 31,
(Millions of Dollars, except per share amounts/Shares in Millions)2017 2016 2015
Net income$1,525 $1,245 $1,193
Weighted average common shares outstanding – basic307.1 300.4 293.0
Add: Incremental shares attributable to effect of potentially dilutive securities1.7 1.5 1.4
Adjusted weighted average common shares outstanding – diluted308.8 301.9 294.4
Net Income per common share – basic$4.97 $4.15 $4.07
Net Income per common share – diluted$4.94 $4.12 $4.05

The computation of diluted EPS for the years ended December 31, 2021 excludes immaterial amounts of performance share awards that were not included because of their anti-dilutive effect.



Estimates
CON EDISON ANNUAL REPORT 2023111


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.


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, 2014 (a)$(45) $(11)
OCI before reclassifications, net of tax of $(3) for Con Edison5 1
Amounts reclassified from accumulated OCI related to pension plan liabilities, net of tax of $(4) and $(1) for Con Edison and CECONY, respectively(a)(b)6 1
Total OCI, net of taxes, at December 31, 201511 2
Accumulated OCI, net of taxes, at December 31, 2015 (a)$(34) $(9)
OCI before reclassifications, net of tax of $(1) for Con Edison and CECONY2 1
Amounts reclassified from accumulated OCI related to pension plan liabilities, net of tax of $(3) and $(1) for Con Edison and CECONY, respectively(a)(b)5 1
Total OCI, net of taxes, at December 31, 20167 2
Accumulated OCI, net of taxes, at December 31, 2016 (a)$(27) $(7)
OCI before reclassifications, net of tax of $3 and $1 for Con Edison and CECONY, respectively(4) —
Amounts reclassified from accumulated OCI related to pension plan liabilities, net of tax of $(3) and $(1) for Con Edison and CECONY, respectively(a)(b)5 1
Total OCI, net of taxes, at December 31, 20171 1
Accumulated OCI, net of taxes, at December 31, 2017 (a)$(26) $(6)
(Millions of Dollars)Con EdisonCECONY
Accumulated OCI, net of taxes, at December 31, 2020 (a)$(25)$(7)
OCI before reclassifications, net of tax of $(8) and $2 for Con Edison and CECONY, respectively225
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)82
Total OCI, net of taxes, at December 31, 2021307
Accumulated OCI, net of taxes, at December 31, 2021 (a)$5$—
OCI before reclassifications, net of tax of $(5) and $(1) for Con Edison and CECONY, respectively133 
Amounts reclassified from accumulated OCI related to pension plan liabilities, net of tax of $(1) for Con Edison (a)(b)41
Total OCI, net of taxes, at December 31, 2022174
Accumulated OCI, net of taxes, at December 31, 2022 (a)$22$4
OCI before reclassifications, net of tax—(2)
Amounts reclassified from accumulated OCI related to pension plan liabilities, net of tax (a)(b)——
Total OCI, net of taxes, at December 31, 2023—(2)
Accumulated OCI, net of taxes, at December 31, 2023 (a)$22$2
(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, 2023 and 2022, cash, temporary cash investments and restricted cash for Con Edison were as follows; CECONY did not have material restricted cash balances as of December 31, 2023 and 2022:
At December 31,
Con Edison
(Millions of Dollars)20232022
Cash and temporary cash investments$1,189$1,282
Restricted cash (a)6223
Total cash, temporary cash investments and restricted cash$1,195$1,505
(a)Con Edison restricted cash included cash of the Clean Energy Businesses' renewable electric project subsidiaries ($6 million and $223 million at December 31, 2023 and 2022, respectively) that, under the related project debt agreements, was restricted to being used for normal operating expenditures, debt service, and required reserves until the various maturity dates of the project debt. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note W. Con Edison retained one deferred project, Broken Bow II, a 75 MW nameplate capacity wind power project located in Nebraska. Con Edison's restricted cash for the 2023 period includes restricted cash of Broken Bow II that continued to be classified as held for sale as of December 31, 2023. See Note X.


Use of Hypothetical Liquidation at Book Value
For certain investments of the Clean Energy Businesses and of Con Edison, 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

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CON EDISON ANNUAL REPORT 2023


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. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See "Assets Held for Sale," below, Note W and Note X.

Assets 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 one year. During the first nine months of 2022, Con Edison considered strategic alternatives with respect to the Clean Energy Businesses. 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.

Con Edison records 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 stops recording depreciation and amortization on assets held for sale. The "Noncontrolling interest" on Con Edison's consolidated balance sheet reflected the noncontrolling interest in projects of the Clean Energy Businesses, that was held for sale as of December 31, 2022. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses with the exception of two tax equity interests and one deferred project, Broken Bow II. Broken Bow II continued to be classified as held for sale as of December 31, 2023.

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 through the date of sale in March 2023, and accordingly no impairments were recorded.

The sale of the Clean Energy Businesses did not represent a strategic shift that had or would have had a major effect on Con Edison, and as such, the sale did not qualify for treatment as a discontinued operation.

For further information, see Note W and Note X.
Note B – Regulatory Matters
Rate Plans

The Utilities provide service to New York customers according to the terms of tariffs approved by the NYSPSC. Tariffs for service to customers of Rockland Electric Company (RECO), O&R’s New Jersey 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.

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Common provisions of the Utilities’ New York 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.
Cost 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 other law, rule, regulation, order, or other requirement or interpretation 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. See "Other Regulatory Matters," below. 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.matters
Positive revenue adjustments 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
CON EDISON ANNUAL REPORT 2023113


generally no symmetric mechanism if actual average net utility plant balances are more than amounts reflected in rates.

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.
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”).

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.
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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The following tables contain a summary of the Utilities’ rate plans:

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CECONY – Electric
Effective periodJanuary 20142020 – December 20162022January 20172023 – December 2019 (b)2025
Base rate changes
Yr. 1 – $(76.2)$113 million (a)
Yr. 2 – $124.0$370 million (a)
Yr. 3 – None$326 million (a)
Yr. 1 – $195$442 million (c)
Yr. 2 – $155$518 million (c)
Yr. 3 – $155$382 million (c)
Amortizations to income of net regulatory (assets) and liabilities
Yr. 1 and– $267 million (b)
Yr. 2 – $(37)$269 million (d)
(b)
Yr. 3 – $123$272 million (d)(b)
Yr. 1 – $84$104 million
(j)
Yr. 2 – $83$49 million
(j)
Yr. 3 – $69$(205) million (j)
Other revenue sourcesRetention of $90 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 – $28- $69 million
Yr. 2 – $47- $74 million
Yr. 3 – $64- $79 million
In 2017,2020, 2021 and 2022, the company recorded $13$34 million, of$64 million and $33 million primarily related to earnings adjustment mechanism incentives for energy efficiency. Theefficiency, respectively.

In 2022, the company also achievedrecorded a positive incentive of $4 million.
Retention of $75 million of annual transmission congestion revenues.

Potential earnings adjustment mechanism incentives for energy efficiency and other potential incentives of $5up to:
Yr. 1 - $70 million that, pursuant
Yr. 2 - $75 million
Yr. 3 - $79 million

In 2023, the company recorded $34.4 million primarily related to the rate plan, will be recorded ratably in earnings from 2018 to 2020.adjustment mechanism incentives for energy efficiency.


Revenue decoupling mechanismsIn 2014, 2015 and 2016, the company deferred for customer benefit $146 million, $98 million and $101 million of revenues, respectively.
Continuation of reconciliation of actual to authorized electric delivery revenues.
In 2017,2020, 2021 and 2022, the company deferred $45for recovery from customers $242 million, $226 million and $90 million of revenues, respectively.
Continuation of reconciliation of actual to authorized electric delivery revenues.
In 2023, the company deferred for customer benefits.recovery from customers $162 million of revenues.
Recoverable energy costs (e)Current rate recovery of purchased power and fuel costs.Continuation of current rate recovery of purchased power and fuel costs.Continuation of current rate recovery of purchased power and fuel costs.
Negative revenue adjustments
Potential penalties (up to $400 million annually) if certain performance targets are not met. In 2014, the company recorded a $5 million negative revenue adjustment. In 2015 and 2016, the company did not record any negative revenue adjustments.
Potential penaltiescharges if certain performance targets relating to service, reliability, safety and other matters are not met:
Yr. 1 – $376- $450 million
Yr. 2 – $341- $461 million
Yr. 3 – $352- $476 million
In 2017,2020, 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.
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

In 2023, the company did not record any negative revenue adjustments.
CostRegulatory reconciliationsIn 2014, 2015 and 2016, the company deferred $57 million, $26 million and $68 million of net regulatory liabilities, respectively (f).
Continuation of reconciliation of expenses for pension and other postretirement benefits, variable-rate tax-exempt debt, major storms, property taxes (f)(d), municipal infrastructure support costs (g)(e), the impact of new laws and environmental site investigation and remediation to amounts reflected in rates (h)(f).
In 2017,2020 and 2021, the company deferred $35$288 million and $191 million of net regulatory assets.assets, respectively. In 2022, the company deferred $138 million of net regulatory liabilities.
Reconciliation of late payment charges (i) and expenses for uncollectibles, pension and other postretirement benefits, variable-rate debt, major storms, property taxes (d), municipal infrastructure support costs (e), the impact of new laws and environmental site investigation and remediation to amounts reflected in rates (f).

In 2023, the company deferred $140 million of net regulatory liabilities.
Net utility plant reconciliationsTarget levels reflected in rates were:
Transmission and distribution:
Yr. 1 – $16,869 million
Yr. 2 – $17,401 million
Yr. 3 – $17,929 million
Storm hardening:
Yr. 1 – $89 million; Yr. 2 – $177 million;
Yr. 3 – $268 million
Other: Yr. 1 – $2,034 million;
Yr. 2 – $2,102 million; Yr. 3 – $2,069 million
The company deferred $6 million and $17 million as a regulatory liability in 2014 and 2015, respectively. In 2016, $9 million was deferred as a regulatory asset.
Target levels reflected in rates:
Electric average net plant target excluding advanced metering infrastructure (AMI):
Yr. 1 – $21,689- $24,491 million
Yr. 2 – $22,338- $25,092 million
Yr. 3 – $23,002- $25,708 million
AMI:
AMI (h):
Yr. 1 – $126- $572 million
Yr. 2 – $257- $740 million
Yr. 3 – $415- $806 million
The
In 2020, the company deferred $0.4$4.1 million as a regulatory assetasset. In 2021 and 2022, the company deferred $3.2 million and $1.8 million, as a regulatory liability, respectively.
Target levels reflected in 2017.

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

In 2023, the company deferred $1.2 million as a regulatory asset.
Average rate base
Yr. 1 – $17,323- $21,660 million
Yr. 2 – $18,113- $22,783 million
Yr. 3 – $18,282- $23,926 million
Yr. 1 – $18,902- $26,095 million
Yr. 2 – $19,530- $27,925 million
Yr. 3 – $20,277- $29,362 million
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Weighted average cost of capital (after-tax)Yr. 1 – 7.05 percent
Yr. 2 – 7.08 percent
to Yr. 3 – 6.916.61 percent
Yr. 1 – 6.82- 6.75 percent
Yr. 2 – 6.80- 6.79 percent
Yr. 3 – 6.73- 6.85 percent
Authorized return on common equityYrs. 1 and 2 – 9.2 percent
Yr. 3 – 9.0		8.8 percent9.09.25 percent
Actual return on common equity (h) (i)
Yr. 1 – 9.048.5 percent
Yr. 2 – 10.168.03 percent
Yr. 3 – 9.668.41 percent

Yr. 1 – 9.39.46 percent



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Earnings sharing
Most earnings above an annual earnings threshold of 9.8 percent for Yrs. 1 and 2 and 9.6 percent for Yr. 3 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 $44.4 million and $6.5 million above the threshold for 2015 and 2016, respectively.
Most earnings above an annual earnings threshold of 9.59.3 percent are to be applied to reduce regulatory assets for environmental remediation and other costs accumulated in the rate year.


In 2017,2020, 2021 and 2022, the company had no earnings sharing above the threshold butthreshold. A reserve of $4.3 million was recorded a positive adjustmentin 2021 related to 2016a potential adjustment to the excess earnings sharing amount for 2016.
Most earnings above an annual earnings threshold of $5.7 million9.75 percent are to be applied to reduce regulatory assets for environmental remediation and other costs accumulated in earnings.the rate year.

In 2023, the company had no earnings sharing above the threshold.
Cost of long-term debtYr. 1 to Yr. 3 – 4.63 percent
Yr. 1 – 5.174.46 percent
Yr. 2 – 5.234.54 percent
Yr. 3 – 5.094.64 percent
Yr. 1 – 4.93 percent
Yr. 2 – 4.88 percent
Yr. 3 – 4.74 percent
Common equity ratio48 percent48 percent
(a)The impact of these base rate changes was deferred which resulted in a $30 million regulatory liability at December 31, 2015; this amount has been amortized to $0 at December 31, 2016.
(b)In January 2017, the NYSPSC approved the September 2016 Joint Proposal for CECONY's electric rate plan for January 2017 through December 2019. 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, CECONY is required to notify the NYSPSC and submit a ring-fencing plan or a demonstration why additional ring-fencing measures are not necessary.
(c)The electric base rate increases are in addition to a $48 million increase resulting from the December 2016 expiration of a temporary credit under the prior rate plan. At the NYSPSC’s option, these increases are being implemented with increases of $199 million in each rate year. Base rates reflect recovery by the company of certain costs of its energy efficiency, system peak reduction and electric vehicle programs (Yr. 1 - $20.5 million; Yr. 2 - $49 million; and Yr. 3 - $107.5 million) over a ten-year period, including the overall pre-tax rate of return on such costs.
(d)
Amounts reflect annual amortization of $107 million of the regulatory asset for deferred Superstorm Sandy and other major storm costs. The costs recoverable from customers were reduced by $4 million. The costs are no longer subject to NYSPSC staff review and the recovery of the costs is no longer subject to refund. In 2016, an additional $123 million of net regulatory liabilities were amortized to income.
(e)For transmission service provided pursuant to the open access transmission tariff of PJM Interconnection LLC (PJM), unless and until changed by the NYSPSC, the company will recover all charges incurred associated with the transmission service. Starting in January 2014, PJM submitted to the FERC a series of requests that substantially increase the charges for the transmission service. CECONY has challenged each of these requests. To date, FERC has rejected all but one of CECONY’s protests. In June 2015 and May 2016, CECONY filed appeals of certain FERC decisions with the U.S. Court of Appeals. In April 2017, the transmission service terminated because CECONY did not exercise its option to continue the service.
(f)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 (5.0, 7.5 or 10.0 basis points, depending on the year).
(g)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 of 30 percent of the amount reflected in rates.
(h)In addition, amounts reflected in rates relating to the regulatory asset for future income tax and the excess deferred federal income tax liability are subject to reconciliation. The NYSPSC staff is to audit the regulatory asset and the tax liability. Differences resulting from the NYSPSC staff review will be deferred for NYSPSC determination of any amounts to be refunded or collected from customers. See "Other Regulatory Matters," below.

(a)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.
(b)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).
(c)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 were effective as of January 1, 2023 and CECONY began billing customers at the new levelized rate in August 2023. The shortfall in revenues due to the timing of billing to customers ($216 million) are being 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.
(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 of 10.0 basis points, 7.5 basis points and 5.0 basis points for each of Yr. 1, Yr. 2 and Yr. 3, respectively, of the 2020 – 2022 rate plan and 10.0 basis points, 5.0 basis points and 5.0 basis points for each of Yr. 1, Yr. 2 and Yr. 3, respectively, of the 2023 – 2025 rate plan.
(e)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.
(f)In addition, the NYSPSC 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.
(g)Reconciliation of net utility plant for AMI will be done on a combined basis for electric and gas.
(h)Calculated in accordance with the earnings calculation method prescribed in the rate order.
(i)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.
(j)Amounts reflect amortization of the 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).



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In April 2023, the NYSPSC approved CECONY’s December 2022 petition seeking cost recovery approval for a proposed clean energy hub in Brooklyn, New York (Brooklyn Clean Energy Hub) at an estimated cost of $810 million, and an estimated in-service date of December 2027, that is in addition to the capital expenditures approved in the CECONY 2023 - 2025 electric rate plan summarized above. The Brooklyn Clean Energy Hub primarily addresses an identified reliability need in 2028 due to a forecasted increase in electric demand. The Brooklyn Clean Energy Hub provides the flexibility for offshore wind resources to interconnect to it during construction and after it commences operation.Construction began in September 2023 and is expected to be completed by 2028. The carrying costs of the Brooklyn Clean Energy Hub will be recovered from customers via a surcharge mechanism after it is placed into service and until such costs are reflected in base rates.

In January 2024, the NYSPSC approved CECONY's August 2023 petition requesting authorization and cost recovery to construct two new substations in Jamaica, Queens (the Reliable Clean City - Idlewild Project) that is in addition to the capital expenditures approved in CECONY's 2023 - 2025 electric rate plan summarized above. The project is expected to be completed by May 2028 to meet anticipated reliability needs and to support New York State’s Climate Leadership and Community Protection Act goals. CECONY estimates that construction will cost $1,200 million. The carrying costs of the Reliable Clean City – Idlewild Project will be recovered from customers via a surcharge mechanism after it is placed into service and until such costs are reflected in base rates.

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CECONY – Gas
Effective periodJanuary 20142020 – December 20162022January 2017 -2023 – December 2019 (b)2025
Base rate changes
Yr. 1 – $(54.6)$84 million (a)
Yr. 2 – $38.6$122 million (a)
Yr. 3 – $56.8$167 million (a)
Yr. 1 – $(5)$217 million (b)
(c)
Yr. 2 – $92$173 million (b)
(c)
Yr. 3 – $90$122 million (b)(c)
Amortizations to income of net

regulatory (assets) and liabilities
$4 million over three years
Yr. 1 – $39$45 million
(b)
Yr. 2 – $37$43 million
(b)
Yr. 3 – $36$10 million (b)
Yr. 1 – $31 million (j)
Yr. 2 – $24 million (j)
Yr. 3 – $(11) million (j)
Other revenue sourcesRetention of revenues from non-firm customers of up to $65 million and 15 percent of any such revenues above $65 million. The company retained $70 million, $66 million and $65 million of such revenues in 2014, 2015 and 2016, respectively.
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 – $7$20 million
Yr. 2 – $8$22 million
Yr. 3 – $8$25 million
In 2017,2020, 2021 and 2022, the company achievedrecorded $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, that,and $9 million respectively. In 2021, the company reversed $6 million of positive incentives recorded in 2020 pursuant to an order issued by the rate plan, will beNYSPSC in December 2021.
Retention of annual revenues from non-firm customers of up to $65 million and 15 percent of any such revenues above $65 million.

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

In 2023, the company recorded ratably in$5 million of earnings from 2018 to 2020.
adjustment mechanism incentives for energy efficiency.

In 2023, the company recorded positive incentives of $3 million.
Revenue decoupling mechanismsIn 2014, 2015 and 2016, the company deferred $28 million, $54 million and $71 million of regulatory liabilities, respectively.
Continuation of reconciliation of actual to authorized gas delivery revenues.
revenues, modified to be calculated based upon revenue per customer class instead of revenue per customer.
In 2017,2020, 2021 and 2022, the company deferred $3for recovery from customers $27 million, $100 million and $141 million of regulatory liabilities.revenues, respectively.
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 2023, the company deferred for recovery from customers $162 million of revenues.
Recoverable energy costsCurrent rate recovery of purchased gas costs.Continuation of current rate recovery of purchased gas costs.Continuation of current rate recovery of purchased gas costs.
Negative revenue adjustments
Potential penalties (up to $33 million in 2014, $44 million in 2015, and $56 million in 2016) if certain gas performance targets are not met. In 2014, 2015 and 2016, the company did not record any negative revenue adjustments.
Potential penaltiescharges if performance targets relating to service, safety and other matters are not met:
Yr. 1 – $68$81 million
Yr. 2 – $63$88 million
Yr. 3 – $70$96 million
In 2017,2020 and 2021, the company did not record any negative revenue adjustments. In 2022, the company recorded a $5 million negative revenue adjustment.adjustments of $8 million.
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

In 2023, the company recorded negative revenue adjustments of $3 million.
CostRegulatory reconciliationsIn 2014, 2015 and 2016, the company deferred $38 million, $11 million, and $32 million of net regulatory liabilities, respectively. (c)
Continuation of reconciliation of expenses for pension and other postretirement benefits, variable-rate tax-exempt debt, major storms, property taxes (d), municipal infrastructure support costs (e), the impact of new laws and environmental site investigation and remediation to amounts reflected in rates. (d)
rates (f).
In 2017,2020 and 2021, the company deferred $2$91 million and $14 million of net regulatory assets, respectively. In 2022, the company deferred $70 million of net regulatory liabilities.
Reconciliation of late payment charges (i) and expenses for uncollectibles, pension and other postretirement benefits, variable-rate debt, major storms, property taxes (d), municipal infrastructure support costs (e), the impact of new laws and environmental site investigation and remediation to amounts reflected in rates (f).
In 2023, the company deferred $12 million of net regulatory liabilities.
Net utility plant reconciliationsTarget levels reflected in rates were:
Gas delivery Yr. 1 – $3,899 million;
Yr. 2 – $4,258 million; Yr. 3 – $4,698 million
Storm hardening: Yr. 1 – $3 million;
Yr. 2 – $8 million; Yr. 3 – $30 million
In 2015 $1 million was deferred as a regulatory liability. In 2014 and 2016 the company deferred an immaterial amount.
Target levels reflected in rates:
Gas average net plant target excluding AMI:
Yr. 1 – $5,844$8,108 million
Yr. 2 – $6,512$8,808 million
Yr. 3 – $7,177$9,510 million
AMI:
AMI (g):
Yr. 1 – $27$142 million
Yr. 2 – $57$183 million
Yr. 3 – $100$211 million
In 2017 $2.22020 and 2021, the company deferred $24.7 million was deferredand $26 million, as a regulatory liability, respectively. In 2022, the company deferred $10.8 million as a regulatory asset.
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 (g):
Yr. 1 - $234 million
CSS:
Yr. 1 - $2 million
In 2023, the company deferred $15.5 million as a regulatory liability.
Average rate base
Yr. 1 – $3,521$7,171 million
Yr. 2 – $3,863$7,911 million
Yr. 3 – $4,236$8,622 million
Yr. 1 – $4,841- $9,647 million
Yr. 2 – $5,395- $10,428 million
Yr. 3 – $6,005- $11,063 million

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Weighted average cost of capital

(after-tax)
Yr. 1 – 7.10Yr. 3 - 6.61 percent

Yr. 1 – 6.75 percent
Yr. 2 – 7.136.79 percent
Yr. 3 – 7.216.85 percent
Yr. 1 – 6.82 percent
Yr. 2 – 6.80 percent
Yr. 3 – 6.73 percent
Authorized return on common equity8.8 percent9.39.25 percent9.0 percent
Actual return on common equity (h) (i)
Yr. 1 – 8.028.4 percent
Yr. 2 – 8.138.48 percent
Yr. 3 – 7.838.93 percent

Yr. 1 – 9.229.00 percent


Earnings sharing
Most 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, 2015 and 2016, the company had no earnings above the threshold.
Most earnings above an annual earnings threshold of 9.59.3 percent are to be applied to reduce regulatory assets for environmental remediation and other costs accumulated in the rate year.

In 2017,2020, 2021 and 2022, the company had no earnings above the threshold.
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 2023, the company had no earnings above the threshold.
Cost of long-term debt
Yr. 1 – 5.17Yr. 3 - 4.63 percent

Yr. 1 – 4.46 percent
Yr. 2 – 5.234.54 percent
Yr. 3 – 5.394.64 percent
Common equity ratio48 percentYr. 1 – 4.9348 percent
Yr. 2 – 4.88 percent
Yr. 3 – 4.74 percent

(a)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.
(b)    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)
(c)    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 were effective as of January 1, 2023. CECONY began billing customers at the new levelized rate in August 2023. The shortfall in revenues due to the timing of billing to customers ($99 million) are being 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.
(d)-(h) See footnotes (d) - (h) to the table under “CECONY Electric,” above.
(i)    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.
(j)    Amounts reflect amortization of the 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).








116CON EDISON ANNUAL REPORT 2017



Common equity ratio48 percent48 percent
(a)The impact of these base rate changes was deferred which resulted in a $32 million regulatory liability at December 31, 2016.
(b)In January 2017, the NYSPSC approved the September 2016 Joint Proposal for CECONY's gas rate plan for January 2017 through December 2019. The gas base rate decrease is offset by a $41 million increase resulting from the December 2016 expiration of a temporary credit under the prior rate plan.
(c)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
(d)See footnotes (e), (f), (g) and (h) to the table under "CECONY - Electric" above.

CON EDISON ANNUAL REPORT 20172023117119




CECONY – Steam
Effective periodJanuary 2014 – December 2016 (a)(g)
November 2023 – October 2026
Base rate changes
Yr. 1 – $(22.4) million (b)
(h)
Yr. 2 – $19.8–$19.8 million (b)
(h)
Yr. 3 – $20.3 million (b)
–$20.3 million(h)
Yr. 4 – None
Yr. 5 – None
Yr. 6 – None
Yr. 7 – None
Yr. 8 – None
Yr. 9 - None
Yr.10 - None

Yr. 1 – $110 million (a)
Yr. 2 – $44 million (a)
Yr. 3 – $45 million (a)
Amortizations to income of net

regulatory (assets) and liabilities
$37 million over three years
Yr. 1 – $15 million (b)
Yr. 2 – $3 million (b)
Yr. 3 – $3 million (b)
Weather Normalization AdjustmentImplementation of a weather normalization adjustment to reflect normal weather conditions during the heating season.
Recoverable energy costsCurrent rate recovery of purchased power and fuel costs.
Continuation of current rate recovery of purchased power and fuel costs.
Negative revenue adjustmentsPotential penaltiescharges (up to $1 million annually) if certain steam performance targets are not met. In years 2014 2015, 2016 and 2017,through 2023, the company did not record any negative revenue adjustments.
Potential charges if certain performance targets relating to service, reliability, safety and other matters are not met:
Yr. 1 - $3.7 million 
Yr. 2 - $3.8 million
Yr. 3 - $3.8 million
CostRegulatory reconciliations (c)(i) (j)In 2014, 2015, 2016, 2017, 2018, 2019, 2020, 2021, 2022 and 2017,2023, 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, $11 million of net regulatory assets and $18 million net regulatory liabilities, respectively.
Reconciliation of uncollectible expenses and late payment charges (c) and expenses for pension and other postretirement benefits, variable-rate debt, property taxes (d), municipal infrastructure support costs (e), the impact of new laws and environmental site investigation and remediation to amounts reflected in rates. (f)
Net utility plant reconciliations
Target levels reflected in rates were:
Production:
Yr. 1 – $1,752 million;
million
Yr. 2 – $1,732 million; million
Yr. 3 – $1,720 million
Distribution:
Yr. 1 – $6 million;
million
Yr. 2 – $11 million; million
Yr. 3 – $25 million
The company reduced its regulatory liability by $0.1 million in 2014 and immaterial amounts in 2015 and 2016 and no deferrals were recorded in 2017.2017, 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. No deferral was recorded in 2023.

Yr. 1 - $2,025 million
Yr. 2 - $2,029 million
Yr. 3 - $2,015 million
Average rate base
Yr. 1 – $1,511 million
Yr. 2 – $1,547 million
Yr. 3 – $1,604 million

Yr. 1 - $1,799 million
Yr. 2 - $1,848 million
Yr. 3 - $1,882 million
Weighted average cost of capital (after-tax)
Yr. 1 – 7.10 percent
Yr. 2 – 7.13 percent
Yr. 3 – 7.21 percent

Yr. 1 - 6.78 percent
Yr. 2 - 6.81 percent
Yr. 3 - 6.83 percent
Authorized return on common equity9.3 percent9.25 percent


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CON EDISON ANNUAL REPORT 2023


Actual return on common equity (j)
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
Yr. 10 - (0.10) percent
.
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, 2022 and 2023, 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.

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 – 5.17 percent
Yr. 2 – 5.23 percent
Yr. 3 – 5.39 percent

Yr. 1 – 4.51 percent
Yr. 2 – 4.58 percent
Yr. 3 – 4.62 percent
Common equity ratio48 percent48 percent
(a)Rates determined pursuant to this rate plan continue in effect until a new rate plan is approved by the NYSPSC.
(b)The impact of these base rate changes was deferred which resulted in an $8 million regulatory liability at December 31, 2016.
(c)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.



(a)The base rate increases will be implemented with increases of $77.8 million in Yr. 1; $77.8 million in Yr. 2; and $77.8 million in Yr. 3 to levelize the customer bill impact. New rates were effective as of November 1, 2023. CECONY began billing customers at the new levelized rate in December 2023.
(b)Amounts reflect amortization of the tax savings under the federal Tax Cuts and Jobs Act of 2017 (TCJA) for the unprotected portion of the regulatory liability for excess deferred income taxes allocable to CECONY’s steam customers (the entire $24 million in Yr.1), the protected portion of the regulatory liability for excess deferred income taxes allocable to CECONY’s steam customers over the remaining lives of the related assets ($3 million in Yr. 1; $5 million in Yr. 2; and $6 million in Yr. 3) and the non-plant portion of the regulatory asset for deficient deferred income taxes allocable to CECONY’s steam customers (the entire $11 million in Yr.1).
(c)CECONY will defer the difference between its actual write-offs of uncollectible expenses and late payment fees (from January 1, 2020 through October 31, 2026) to amounts reflected in rates, with recovery/refund from or to customers via surcharge/sur-credit. Surcharge recoveries for write-offs of uncollectible expenses and late payment fees will each be subject to an annual cap that produces no more than a half percent (0.5 percent) total customer bill impact (estimated to be $2.5 million, $3.0 million, $3.5 million for Yr. 1, Yr. 2 and Yr. 3, respectively). Amounts in excess of the annual surcharge cap in a specific year may be rolled forward for recovery and will count towards the following year’s surcharge cap. Amounts in excess of the surcharge cap will be deferred as a regulatory asset for recovery in CECONY’s next steam base rate case.
(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), with recovery/refund from or to customers via surcharge/sur-credit. Surcharge recoveries will be subject to an annual cap that produces no more than a half percent (0.5 percent) total customer bill impact (estimated to be $2.5 million, $3.0 million, $3.5 million for Yr. 1, Yr. 2 and Yr. 3, respectively). Amounts in excess of the annual surcharge cap in a specific year may be rolled forward for recovery and will count towards the following year’s surcharge cap. Amounts in excess of the surcharge cap will be deferred as a regulatory asset for recovery in CECONY’s next steam base rate case.
(e)In general, if actual expenses for municipal infrastructure support (other than company labor) are below the amounts reflected in rates, CECONY will defer the difference for credit to customers, and if the actual expenses are above the amount reflected in rates, CECONY will defer for recovery from customers 80 percent of the difference subject to a maximum deferral, subject to certain conditions, of 30 percent of the amount reflected in the rate plan.
(f)In addition, the NYSPSC 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.
(g)Rates determined pursuant to this rate plan continued to be in effect until October 31, 2023. 2023 or Yr. 10 represents a partial year commencing January 1, 2023 through October 31, 2023.
(h)The impact of these base rate changes was deferred which resulted in an $8 million regulatory liability at December 31, 2016.
CON EDISON ANNUAL REPORT 2023121


(i)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.
(j)Calculated in accordance with the earnings calculation method prescribed in the rate order.

Pursuant to the CECONY 2023-2026 steam rate plan, CECONY may file petitions for approval of future decarbonization projects and may defer/capitalize up to $3 million in total incremental operation and maintenance and/or capital costs for preliminary work on future decarbonization projects until there is a NYSPSC order on cost recovery.
118

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O&R New York – Electric
Effective period (a)January 2019 – December 2021January 2022 – December 2024
Effective periodJuly 2012 – October 2015November 2015 - October 2017 (a)
Base rate changes
Yr. 1 – $19.4$13.4 million
(a)
Yr. 2 – $8.8$8.0 million
(a)
Yr. 3 – $5.8 million (a)
Yr. 1 – $4.9 million (h)
Yr. 2 – $16.2 million (h)
Yr. 3 – $23.1 million (h)
Amortizations to income of net
regulatory (assets) and liabilities
Yr. 1 – $(1.5) million (b)
Yr. 2 – $(1.5) million (b)
Yr. 3 – $(1.5) million (b)
Yr. 1 – $11.8 million (i)
Yr. 2 – $13.5 million (i)
Yr. 3 – $15.2 million (i)
Other revenue sources
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.

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.
Potential earnings adjustment mechanism incentives for energy efficiency and other potential incentives of up to:
Yr. 1 – $9.3$3.3 million

Yr. 2 – $8.8 $2.3 million

Yr. 3 – $4.0 million

In 2022 and 2023, the company recorded $2.7 million and $1.5 million of earnings adjustment mechanism incentives for energy efficiency, respectively.
Amortizations to income of net
regulatory (assets) and liabilities
$(32.2) million over three years
Yr. 1 – $(8.5) million (b)
Yr. 2 – $(9.4) million (b)
Revenue decoupling mechanisms
Continuation of reconciliation of actual to authorized electric delivery revenues.

In 2012, 20132019 and 2014,2020, the company deferred for the customer’s benefit $2.6 million, $3.2$0.1 million and $(3.4)$6 million regulatory assets, respectively. In 2021, $10 million was deferred as regulatory liabilities.
Continuation of reconciliation of actual to authorized electric delivery revenues.

In 2015, 20162022 and 2017,2023, the company deferred for the customer’s benefit an immaterial amount, $6.3$6.9 million asand $3.4 million regulatory liabilities and $11.2 million as regulatory asset,assets respectively.
Recoverable energy costsCurrent rate recovery of purchased power and fuel costs.Continuation of current rate recovery of purchased power costs.Continuation of current rate recovery of purchased power and fuel costs.
Negative revenue adjustments
Potential penalties (up to $3 million annually)charges if certain customer service and system reliability performance targets relating to service, reliability and other matters are not met. met:
Yr. 1 - $4.4 million
Yr. 2 - $4.4 million
Yr. 3 - $4.5 million

In 2012, 20132019,2020 and 2014,2021, the company did not record any negative revenue adjustments.
Potential penalties (up to $4 million annually)charges if certain performance targets relating to service, reliability, safety and other matters are not met. met:
Yr. 1 – $4.3 million
Yr. 2 – $4.4 million
Yr. 3 – $5.1 million

In 2015 the company recorded $1.25 million in negative revenue adjustments. In 20162022 and 2017,2023, the company did not record any negative revenue adjustments.
CostRegulatory reconciliations
Reconciliation of expenses for pension and other postretirement benefits, environmental remediation costs, property taxes (c), energy efficiency program (d), major storms, the impact of new laws and certain other costs to amounts reflected in rates (e).

In 2012, 20132019, 2020 and 2014,2021, the company deferred $7.8$4.3 million, $4.1$30.3 million and $(0.2)$24 million as a net increase/(decrease) to regulatory assets, respectively.

Reconciliation of late payment charges (k) and reconciliation of expenses for pension and other postretirement benefits, environmental remediation costs, property taxes (c), energy efficiency program (j), major storms, uncollectible expenses and certain other costs to amounts reflected in rates (e).

In 2015, 20162022 and 2017,2023, the company deferred $0.3 million, $7.4$9.4 million and $3.2$15.4 million as net decreases to regulatory assets,liabilities, respectively.
Net utility plant reconciliations
Target levels reflected in rates were:
Electric average net plant target excluding advanced metering infrastructure (AMI):
Yr. 1 – $678 million; - $1,008 million
Yr. 2- $704 million; 2 - $1,032 million
Yr. 3 – $753- $1,083 million
AMI (f):
Yr. 1 - $48 million
Yr. 2 - $58 million
Yr. 3 - $61 million

The company increased itsregulatory asset by an immaterial amount in 2019, $0.4 million as a regulatory liability by $4.2 million in 2012. The company reduced its2020 and an immaterial amount as a regulatory liability by $1.1 million and $2.3 million in 2013 and 2014, respectively.2021.
Target levels reflected in rates are:
Yr. 1 – $928 million (c)
Yr. 2 – $970 million (c)
The company increased/(reduced) its regulatory asset by $2.2 million, $(1.9) million and $(1.9) million in 2015, 2016 and 2017, respectively.
rates: Electric average net plant target
Average rate base
Yr. 1 – $671$1,175 million
Yr. 2 – $708$1,198 million
Yr. 3 – $759$1,304 million

The company increased regulatory asset/liabilities by an immaterial amount in 2022 and 2023.
Average rate base
Yr. 1 – $763 $878 million
Yr. 2 – $805$906 million
Yr. 3 – $948 million
Yr. 1 – $1,021 million
Yr. 2 – $1,044 million
Yr. 3 – $1,144 million
CON EDISON ANNUAL REPORT 2023123


Weighted average cost of capital (after-tax)
Yr. 1 – 7.616.97 percent
Yr. 2 – 7.656.96 percent
Yr. 3 – 7.486.96 percent
Yr. 1 – 7.10 6.77 percent
Yr. 2 – 7.066.73 percent
Yr. 3 – 6.72 percent
Authorized return on common equityYr. 1 – 9.4 percent
Yr. 2 – 9.5 percent
Yr. 3 – 9.6 percent		9.0 percent9.2 percent
Actual return on common equity (g)
Yr. 1 – 12.99.6 percent
Yr. 2 – 8.78.76 percent
Yr. 3 – 9.49.16 percent
Yr. 1 – 10.88.96 percent
Yr. 2 – 9.7- 8.73 percent
Earnings sharingThe company recorded a regulatory liability of $1 million for earnings above the sharing threshold under the rate plan as of December 31, 2014.
Most earnings above an annual earnings threshold of 9.6 percent are to be applied to reduce regulatory assets. assets for environmental remediation and other costs accumulated in the rate year.

In 2015,2019, 2020 and 2021, earnings did not exceed the earnings threshold. Actual
Most earnings were $6.1 millionabove an annual earnings threshold of 9.7 percent are to be applied to reduce regulatory assets for environmental remediation and $0.3 million aboveother costs accumulated in the threshold for 2016rate year.

In 2022 and 2017, respectively.2023, earnings did not exceed the earnings threshold.
Cost of long-term debt
Yr. 1 – 6.075.17 percent
Yr. 2 – 6.075.14 percent
Yr. 3 – 5.645.14 percent
Yr. 1 – 5.42 4.58 percent
Yr. 2 – 5.354.51 percent
Yr. 3 – 4.49 percent
Common equity ratio48 percent48 percent
(a)Rates determined pursuant to this rate plan continue in effect until a new rate plan is approved by the NYSPSC.
(b)$59.3 million of the regulatory asset for deferred storm costs is to be recovered from customers over a five year period, including $11.85 million in each of years 1 and 2, $1 million of the regulatory asset for such costs will not be recovered from customers, and all outstanding issues related to Superstorm Sandy and other past major storms
(a)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.
(b)Reflects amortization of, among other things, the company’s net benefits under the TCJA prior to November 2014 are resolved. Approximately $4 million of regulatory assets for property tax and interest rate reconciliations will not be recovered from customers. Amounts that will not be recovered from customers were charged-off in June 2015.
(c)Excludes electric AMI as to which the company will be required to defer as a regulatory liability the revenue requirement impact of the amount, if any, by which actual average net utility plant balances are less than amounts reflected in rates: $1 million in year 1 and $9 million in year 2.
In January 2018,1, 2019, amortization of net regulatory liability for future income taxes and reduction of previously incurred regulatory assets for environmental remediation costs. Also reflects amortization over a six year period of previously incurred incremental major storm costs.
(c)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.
(d)Energy efficiency costs are expensed as incurred. Such costs are subject to a downward-only reconciliation over the terms of the electric 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.
(e)In addition, the NYSDPS continues its 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.
(f)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.
(g)Calculated in accordance with the earnings calculation method prescribed in the rate order.
(h)The base rate changes will be implemented with increases of: Yr. 1 - $11.7 million; Yr. 2 - $11.7 million; and Yr. 3 - $11.7 million.
(i)Reflects amortization of, among other things, previously incurred incremental deferred storm costs over a five-year period.
(j)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.
(k)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.


In January 2024, O&R filed a request with the NYSPSC for an increase in the rates it charges for electric service rendered in New York, effective January 1, 2019,2025, of $20.3$18.1 million. The filing reflects a return on common equity of 9.7510.25 percent and a common equity ratio of 48 percent.50 percent. The filing proposes continuation of the provisions with respect to recovery from customers of the cost of purchased power, and the reconciliation of actual expenses allocable to the electric business to the amounts for such costs reflected in electric rates for storm costs, uncollectible expense, pension and other postretirement benefit costs, environmental remediation and property taxes.taxes and recovery from customers for proposed climate change resilience investments.



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CON EDISON ANNUAL REPORT 20171192023




O&R New York – Gas
Effective periodJanuary 2019 – December 2021January 2022 – December 2024
Effective periodNovember 2009 – October 2015November 2015 – October 2018
Base rate changes
Yr. 1 – $9$(7.5) million
(a)
Yr. 2 – $9$3.6 million
(a)
Yr. 3 – $4.6$0.7 million
(a)

Yr. 1 – $0.7 million (h)
Yr. 2 – $7.4 million (h)
Yr. 3 – $4.3$9.9 million collected through a surcharge
Yr. 4 – None
Yr. 5 – None
Yr. 1 – $16.4 million
Yr. 2 – $16.4 million
Yr. 3 – $5.8 million
Yr. 3 – $10.6 million collected through a surcharge(h)
Amortization to income of net regulatory (assets) and liabilities$(2) million over three years
Yr. 1 – $(1.7) $1.8 million (a)
(b)
Yr. 2 – $(2.1) $1.8 million (a)
(b)
Yr. 3 – $(2.5)$1.8 million (a)(b)


Yr. 1 – $0.8 million
Yr. 2 – $0.7 million
Yr. 3 – $0.3 million
Other revenue sources
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 and 2023, the company recorded $0.2 million and immaterial amounts of earnings adjustment mechanism incentives for energy efficiency, respectively. In 2022 and 2023, the company recorded $0.2 million and $0.2 million of positive incentives, respectively.
Revenue decoupling mechanisms
Continuation of reconciliation of actual to authorized gas delivery revenues.

In 2012, 20132019 and 2014, the company deferred $4.7 million, $0.7 million and $(0.1) million of regulatory liabilities, respectively.
In 2015 and 2016,2020, the company deferred $0.8 million and $0.5 million as regulatory assets, and $6.2 million of regulatory liabilities, respectively. In 2017,2021, $4 million was deferred as a regulatory liability.
Continuation of reconciliation of actual to authorized gas delivery revenues.

In 2022 and 2023, the company deferred $1.7$2.0 million inand $7.6 million as regulatory liabilities.assets, respectively.
Recoverable energy costsCurrentContinuation of current rate recovery of purchased gas costs.CurrentContinuation of current rate recovery of purchased gas costs.
Negative revenue adjustments
Potential penalties (upcharges if performance targets relating to $1.4 million annually) if certain operationsservice, safety and customer service requirementsother matters are not met. met: Yr. 1 - $5.5 million; Yr. 2 - $5.7 million; and Yr. 3 - $6.0 million.

In 2012, 2013 and 2014,2019, the company did not record anyrecorded a $0.2 million. In 2020 and 2021, the company recorded an immaterial amount of negative revenue adjustments.
Potential penalties (upcharges if performance targets relating to $3.7 million in service, safety and other matters are not met:
Yr. 1 $4.7– $6.3 million in
Yr. 2 – $6.7 million
Yr. 3 – $7.3 million

In 2022 and $4.9 million in Yr. 3) if certain performance targets are not met. In 2015, 2016 and 2017,2023, the company did not record anyrecorded $0.1 million and immaterial amounts of negative revenue adjustments.adjustments, respectively.
CostRegulatory reconciliations
Reconciliation of expenses for pension and other postretirement benefits, environmental remediation costs, property taxes (c), energy efficiency program (d), the impact of new laws and certain other costs to amounts reflected in rates (e).

In 2012, 20132019 and 2014,2020, the company deferred $0.7$6 million $8.3 million and $8.3as net regulatory liabilities, $1.8 million as net regulatory assets, respectively. In 2021 $8 million were deferred as regulatory assets.

Reconciliation of late payment charges (k) and reconciliation of expenses for pension and other postretirement benefits, environmental remediation costs, property taxes (i), energy efficiency program (j), major storms, uncollectible expenses and certain other costs to amounts reflected in rates.

In 20152022 and 2016,2023, the company deferred $4.5$3.4 million and $6.6$12.1 million as net regulatory assets/liabilities, and assets, respectively. In 2017, the company deferred $3.5 million as net regulatory liabilities.
Net utility plant reconciliationsThe company deferred $0.7 million in 2012 as a regulatory asset and no deferrals were recorded for 2013 or 2014.
Target levels reflected in rates are:
were:
Gas average net plant target excluding AMI:
Yr. 1 – $492- $593 million (b)
Yr. 2 – $518- $611 million (b)
Yr. 3 – $546- $632 million (b)
No deferral was recorded for 2015
AMI (g):
Yr. 1 - $20 million
Yr. 2 - $24 million
Yr. 3 - $25 million

In 2019, 2020 and 2021, the company deferred immaterial amounts were recorded as regulatory liabilitiesassets.
Target levels reflected in 2016 and 2017.rates: Gas average net plant target
Average rate base
Yr. 1 – $280$720 million
Yr. 2 – $296$761 million
Yr. 3 – $309$803 million

In 2022 and 2023, the company deferred immaterial amounts as regulatory assets/liabilities.
Average rate base
Yr. 1 – $366 $454 million
Yr. 2 – $391 $476 million
Yr. 3 – $417$498 million
Yr. 1 – $566 million
Yr. 2 – $607 million
Yr. 3 – $694 million
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Weighted average cost of capital (after-tax)8.49 percent
Yr. 1 – 7.10 6.97 percent
Yr. 2 – 7.06 6.96 percent
Yr. 3 – 7.066.96 percent
Yr. 1 – 6.77 percent
Yr. 2 – 6.73 percent
Yr. 3 – 6.72 percent
Authorized return on common equity10.4 percent9.0 percent9.2 percent
Actual return on common equity (h)
Yr. 1 – 10.28.90 percent
Yr. 2 – 9.69.58 percent
Yr. 3 – 12.610.11 percent
Yr. 4 – 10.2 percent
Yr. 5 – 6.1 percent

Yr. 1 – 11.2- 10.01 percent
Yr. 2 – 9.7- 10.40 percent
Earnings sharingEarnings above an annual earnings threshold of 11.4 percent are to be applied to reduce regulatory assets. In 2012, 2013 and 2014, earnings did not exceed the earnings threshold.
Most earnings above an annual earnings threshold of 9.6 percent are to be applied to reduce regulatory assets.assets for environmental remediation and other costs accumulated in the rate year. In 2015,2019 and 2020, earnings did not exceed the earnings threshold. ActualIn 2021, actual earnings were $4$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 and 2023, actual earnings were $1.1 million and $0.2$2.8 million above the threshold, for 2016 and 2017, respectively.
Cost of long-term debt6.81 percent
Yr. 1 – 5.42 5.17 percent
Yr. 2 – 5.35 5.14 percent
Yr. 3 – 5.355.14 percent
Yr. 1 – 4.58 percent
Yr. 2 – 4.51 percent
Yr. 3 – 4.49 percent
Common equity ratio48 percent48 percent
(a)Reflects that the company will not recover from customers a total of approximately $14 million of regulatory assets for property tax and interest rate reconciliations. Amounts that will not be recovered from customers were charged-off in June 2015.
(b)Excludes gas AMI as to which the company will be required to defer as a regulatory liability the revenue requirement impact of the amount, if any, by which actual average net utility plant balances are less than amounts reflected in rates: $0.5 million in year 1, $4.2 million in year 2 and $7.2 million in year 3.
(a)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)-(g) See footnotes (c) - (h) to the table under “O&R New York - Electric,” above.
(h) The base rate changes will be implemented with increases of: Yr. 1 – $4.4 million; Yr. 2 - $4.4 million; and Yr. 3 - $4.4 million.
(i)     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.
(j)    See footnote (j) to the table under "O&R New York - Electric," above.
(k)    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.

In January 2018,2024, O&R filed a request with the NYSPSC for an increase in the rates it charges for gas service rendered in New York, effective January 1, 2019,2025, of $4.5$14.4 million. The filing reflects a return on common equity of 9.7510.25 percent and a common equity ratio of 4850 percent. The filing proposes continuation of the provisions with respect to recovery from customers of the cost of purchased gas,power, and the reconciliation of actual expenses allocable to the gas business to the amounts for such costs reflected in gas rates for uncollectible expense, pension and other postretirement benefit costs, environmental remediation and property taxes.




The filing requested a reduction in the service lives of certain gas assets by 15 years in anticipation of the transition from gas to electric that is expected to result from implementation of the CLCPA.
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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 periodFebruary 2020 – December 2021January 2022
RECO
Effective periodAugust 2014 – February 2017March 2017 (a)
Base rate changesYr. 1 – $13.0 $12 millionYr. 1 – $1.7$9.65 million
Amortization to income of net

regulatory (assets) and liabilities
$4.8 million over four years.
$0.40.2 million over three years and $(25.6)$9.2 million of deferred storm costs over four years
$0.2a three-year period (excluding $2.4 million of costs for Tropical Storm Henri which will be deferred over a three years year period in base rates) and continuation of $(25.6)$10 million of deferred storm costs over four3 years expiring July 31, 2018 (b)
Recoverable energy costsCurrent rate recovery of purchased power costs.Current rate recovery of purchased power costs.
Cost reconciliationsNoneNoneNoneReconciliation of uncollectible accounts, Demand Side Management and Clean Energy Program.
Average rate base$172.2229.9 millionYr. 1 – $178.7$262.8 million
Weighted average cost of capital

(after-tax)
7.11 percent7.837.08 percent7.47 percent
Authorized return on common equity9.5 percent9.75 percent9.6 percent
Actual return on common equity
Yr. 1 – 9.25.4 percent
Yr. 2 – 8.72.3 percent
(c)
Yr. 1 - 9.6 percent
Yr. 2 - 9.7 percent

Cost of long-term debt4.88 percent5.894.74 percent5.37 percent
Common equity ratio48.32 percent5048.51 percent49.7 percent
(a)Effective until a new rate plan approved by the NJBPU goes into effect.
(b)In January 2016, the NJBPU approved RECO’s plan to spend $15.7 million in capital over three years to harden its electric system against storms, the costs of which RECO, beginning in 2017, is collecting through a customer surcharge.
(c)Actual return on common equity for first rate year of current rate plan not determinable until March 31, 2018 end of rate year.


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 November 2017,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.

In October 2023, FERC approved a September 2017July 2023 settlement agreement among RECO, the New Jersey Division of Rate Counsel and the NJBPU that resolves all issues set for hearing and increases RECO's annual transmission revenue requirement from $11.8$16.9 million to $17.7$18.2 million, effective August 30, 2022 through December 31, 2023 and to $20.7 million, effective January 1, 2024.

In December 2023, the NJBPU authorized RECO to defer costs of $4.8 million related to major storms that occurred during 2022 and 2023 until RECO’s next base rate case.

Infrastructure Investment and Jobs Act
In January 2024, CECONY initiated an application for $100 million of federal grants for grid resilience, O&R and RECO jointly initiated an application for $100 million of federal grants for grid resilience, and CECONY, O&R and RECO initiated a joint application for $60 million of federal grants for smart grids under the Infrastructure Investment and Jobs Act (IIJA). Federal grants obtained pursuant to the IIJA are expected to be used to reduce customers’ costs for investments in CECONY’s, O&R’s, and RECO’s electric systems.

COVID - 19 Regulatory Matters

Due to the COVID-19 pandemic, New York State enacted laws prohibiting New York utilities, including CECONY and O&R, from disconnecting residential customers and small business customers. The Utilities largely suspended service disconnections, certain collection notices, final bill collection agency activity, new late payment charges and certain other fees from March 2020 through December 2021.

In November 2021, the NYSPSC issued an order establishing a surcharge recovery mechanism for CECONY to collect late payment charges and fees that were not billed for the years ended December 31, 2020 and 2021. CECONY recorded $62 million and $11 million for electric and gas, respectively, as revenue for the year ended
CON EDISON ANNUAL REPORT 2023127


December 31, 2021, as permitted under the accounting rules for regulated utilities. Pursuant to its electric and gas rate plans, 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 million, respectively, as revenue for the year ended December 31, 2021, as permitted under accounting rules for regulated utilities.

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 2021, 2022, and 2023, New York implemented various programs providing arrears assistance to utility customers. One 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 New York gross-receipts tax equal to the amount of arrears waived by the Utilities in the year that the arrears are certified by the NYSPSC. In addition, the NYSPSC authorized Phase 1 and Phase 2 COVID-19 arrears assistance programs whereby the Utilities were provided with customer credits towards reducing accounts receivable balances (the Phase 1 Order and Phase 2 Order, respectively). A portion of the Phase 1 Order credits were funded by New York State and the remaining Phase 1 Order credit amounts and all Phase 2 Order credit amounts will be recovered by the Utilities via surcharge mechanisms.

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 New York State funding; $108.4 million pursuant to the Phase 1 Order, that will be recovered via a surcharge mechanism over a four-year period that began September 2022; a $7 million reserve for CECONY; and $80 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 New York State funding; $3.2 million pursuant to the Phase 1 order, that was recovered via a surcharge mechanism over a one-year period that began September 2022; and $1.3 million in qualified tax credits and payments pursuant to the OTDA Program described above.

For the year ended December 31, 2023, CECONY and O&R issued total net credits of $352.3 million and $2.9 million, respectively, towards reducing customers’ accounts receivable balances. For the year ended December 31, 2023, the total credits for CECONY were comprised of: $13.2 million pursuant to the Phase 1 Order; $327.6 million pursuant to the Phase 2 Order that will be recovered via a surcharge mechanism over a ten-year period that began June 2023; and $11.5 million in qualified tax credits and payments pursuant to the OTDA Program described above. For the year ended December 31, 2023, the total credits for O&R were comprised of: $0.1 million pursuant to the Phase 1 Order; $2.1 million pursuant to the Phase 2 Order that will be recovered via a surcharge mechanism over a one-year period that began April 2017. The revenue requirement reflects a return on common equity of 10.0 percent.2023; and $0.7 million in qualified tax credits and payments pursuant to the OTDA Program described above.

Other Regulatory Matters

In AugustOctober 2023, CECONY and November 2017, the NYSPSC issued orders in its proceeding investigating anO&R replaced their separate existing customer billing and information systems with a single new customer billing and information system. In April 21, 2017 Metropolitan Transportation Authority (MTA) subway power outage. The orders indicated that the investigation determined that the outage was caused by2023, CECONY filed a failure of CECONY’s electricity supply to a subway station, which led to a loss of the subway signals, and that one of the secondary services to the MTA facility had been improperly rerouted and was not properly documented by the company. The orders also indicated that the loss of power to the subway station affected multiple subway lines and caused widespread delays across the subway system. Pursuant to the orders, the company is required to take certain actions, including inspecting, repairing and installing certain electrical equipment that serves the subway system, analyzing power supply and power quality events affecting the MTA’s signaling services, and filing monthly reportspetition with the NYSPSC for permission to capitalize incremental costs for the new system above a $421 million limit on capital investments included in CECONY’s 2020 – 2022 electric and gas rate plans. At December 31, 2023, CECONY's incurred costs for the new system were approximately $496 million ($75 million above the $421 million limit in the rate plans), all of which have been capitalized. CECONY cannot predict the NYSPSC’s response to its April 2023 petition and the NYSPSC may prohibit CECONY from capitalizing some or all of the company's activities related tocosts above the subway system. In July 2017, the Chairman$421 million limit. O&R's 2022 - 2024 electric and gas rate plans do not include a limit on capitalization of the NYSPSC notified the company that the April 21, 2017 subway power outage incident will likely result in a prudence review of the reasonableness of CECONY's actions and conduct. The orders did not commence a prudence review. The company incurred costs related to this matter in 2017 of $65 million. Included in this amount is $15 million in capital and operating and maintenance costs reflected in the company's electric rate plan and $50 million deferred as a regulatory asset pursuant to the rate plan. The company, which plans to complete the required actions in 2018, expects to incur costs related to this matter in 2018 of $137 million. Included in this amount is $10 million in expected capital and operating and maintenance costs reflected in the rate plan and $127 million expected to be deferred as a regulatory asset pursuant to the rate plan.new system costs.


In December 2017, the NYSPSC issued an order initiating a proceeding to study the potential effects of the TCJA on the tax expenses and liabilities of New York State utilities and the regulatory treatment to preserve the resulting benefits for customers. In January 2018, the NJBPU issued an order initiating a proceeding to consider the TCJA. Upon enactment of the TCJA, CECONY, O&R and RECO re-measured their deferred tax assets and liabilities based upon the 21 percent corporate income tax rate under the TCJA. As a result, CECONY, O&R and RECO, decreased their net deferred tax liabilities by $4,781 million, $216 million and $45 million, respectively, decreased their regulatory asset for future income tax by $1,182 million, $51 million and $17 million, respectively, decreased their regulatory asset for revenue taxes by $86 million, $4 million and $0 million, respectively, and accrued regulatory liabilities for future income tax of $3,513 million, $161 million and $28 million, respectively. See Note L. 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 accounting of certain utilities, including CECONY and O&R. See footnote (h)expense for ratemaking purposes. The understatement was related to the table under "CECONY – Electric," above.

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, CECONY's steam plans prior to November 2023. 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

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CON EDISON ANNUAL REPORT 2023


a portion of the regulatory asset and must be corrected through an increase in future years’ revenue requirements. The regulatory asset ($1,113 million and $18 million for CECONY and O&R, respectively, as of December 31, 2023 and $1,150 million and $22 million for CECONY and O&R, respectively, as of December 31, 2022 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, 2023, the Utilities had not accrued a liability related to this matter.
CON EDISON ANNUAL REPORT 20172023121129




Regulatory Assets and Liabilities
Regulatory assets and liabilities at December 31, 20172023 and 20162022 were comprised of the following items:
                  Con Edison                CECONY
(Millions of Dollars)2023202220232022
Regulatory assets
Environmental remediation costs$1,105$991$1,022$906
System peak reduction and energy efficiency programs (a)1,0577831,038780
COVID - 19 pandemic deferrals (b)789396782389
Revenue taxes476436455417
Deferred storm costs (c)206270115173
Property tax reconciliation (d)169121169121
Deferred derivative losses - long term1633114826
Electric vehicle make ready (e)73336830
MTA power reliability deferral (f)61926192
Pension and other postretirement benefits deferrals4827939240
Gas service line deferred costs43994399
Legacy meters1720——
Unrecognized pension and other postretirement costs (g)—78—78
Other400345374318
Regulatory assets – noncurrent4,6073,9744,3143,669
Deferred derivative losses - short term269184253178
Recoverable energy costs121211108
Regulatory assets – current281305254286
Total Regulatory Assets$4,888$4,279$4,568$3,955
Regulatory liabilities
Future income tax*$1,535 $1,753 $1,404 $1,616 
Allowance for cost of removal less salvage (h)1,4561,3151,2661,137
Unrecognized pension and other postretirement costs (g)9431,6388671,536
Pension and other postretirement benefit deferrals28414423398
Net unbilled revenue deferrals278204278204
2022 and 2023 late payment charge deferral167127161123
System benefit charge carrying charge92738869
Deferred derivative gains - long term4914549130
Net proceeds from sale of property48694769
Settlement of prudence proceeding (i)11101110
Other465549414489
Regulatory liabilities – noncurrent5,3286,0274,8185,481
Deferred derivative gains - short term7431171287
Refundable energy costs713436—
Revenue decoupling mechanism—29—21 
Regulatory liabilities—current145374107308
Total Regulatory Liabilities$5,473$6,401$4,925$5,789
                    Con Edison                CECONY
(Millions of Dollars)2017
2016
2017
2016
Regulatory assets    
Unrecognized pension and other postretirement costs$2,526$2,874$2,376$2,730
Future income tax*—
2,439—
2,325
Environmental remediation costs793823677711
Revenue taxes260295248280
Pension and other postretirement benefits deferrals7938587
Recoverable energy costs60425238
Municipal infrastructure support costs56445644
Property tax reconciliation513725—
MTA power reliability deferral50—
50—
Deferred derivative losses44483742
Deferred storm costs3856—
3
Brooklyn Queens demand management program37293729
Unamortized loss on reacquired debt37433541
Indian Point Energy Center program costs29502950
Preferred stock redemption24252425
Workers’ compensation10131013
Net electric deferrals924924
O&R transition bond charges915—
—
Surcharge for New York State assessment228226
Other15210113885
Regulatory assets – noncurrent4,2667,0243,8636,473
Deferred derivative losses40913786
Recoverable energy costs279254
Regulatory assets – current671006290
Total Regulatory Assets$4,333$7,124$3,925$6,563
Regulatory liabilities    
Future income tax*$2,545
$—
$2,390
$—
Allowance for cost of removal less salvage846755719641
Pension and other postretirement benefit deferrals207193181162
Net unbilled revenue deferrals183145183145
Energy efficiency portfolio standard unencumbered funds127—
122—
Property tax reconciliation107178107178
Unrecognized other postretirement costs92609260
Settlement of prudence proceeding66956695
Property tax refunds441441
Carrying charges on repair allowance and bonus depreciation43684267
New York State income tax rate change36613560
Variable-rate tax-exempt debt - cost rate reconciliation30552648
Earnings sharing - electric, gas and steam29391928
Settlement of gas proceedings27272727
Base rate change deferrals21402140
Net utility plant reconciliations1216815
Other162172137145
Regulatory liabilities – noncurrent4,5771,9054,2191,712
Refundable energy costs4129165
Deferred derivative gains31282824
Revenue decoupling mechanism29712161
Regulatory liabilities—current1011286590
Total Regulatory Liabilities$4,678$2,033$4,284$1,802
` * See "Federal Income Tax" in Note A, "Other Regulatory Matters," above, and Note L.L.


(a) 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.

(b) COVID - 19 Deferrals include (1) the amount to be collected from customers related to the Emergency Summer Cooling Credits program for CECONY, (2) 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, (3) deferrals under CECONY and O&R's electric and gas rate plans for the reconciliation of write-offs of customer accounts receivable balances to amounts reflected in rates and (4) deferral related to the arrears relief programs. Amounts deferred under the arrears relief programs were $398.6 million and $2.1 million for CECONY and O&R at December 31, 2023, respectively, and $93.5 million and $2.6 million at December 31, 2022, respectively, and receive a return at the pre-tax weighted average cost of capital.

(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) 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.

(e) Supports the development of electric infrastructure and equipment necessary to accommodate an anticipated increase in the deployment of electric vehicles within New York State.
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CON EDISON ANNUAL REPORT 20172023






(f) 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.

(g) Unrecognized pension and other postretirement costs represent the net regulatory assetliability associated with the accounting rules for retirement benefits. See "Pension and Other Postretirement Benefits" in Note A.
Revenue taxes represent the timing difference between taxes
(h) Allowance for cost of removal less salvage represents cash previously collected and paid by the Utilitiesfrom customers to fund mass transportation.future anticipated removal expenditures.
Deferred storm costs represent response and restoration costs, other than capital expenditures, in connection with Superstorm Sandy and other major storms that were deferred by the Utilities.
Net electric deferrals represent the remaining unamortized balance of certain regulatory assets and liabilities of CECONY that were combined effective April 1, 2010 and are being amortized to income through March 31, 2018.

(i) 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.

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).
The NYSPSC has authorized CECONY to accrue unbilled electric, gas and steam revenues. CECONY has deferred the net margin on thedifferences between unbilled revenues and energy costs for the future benefit of customers by recording a regulatory liability of $183$278 million and $145$204 million at December 31, 20172023 and 2016, respectively,2022, respectively.

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, 2023 and 2022 was 5.20 percent and 1.75 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 ($2,541 million and $2,304 million for Con Edison, and $2,359 million and $2,097 million for CECONY at December 31, 2023 and 2022, respectively). Regulatory assets of RECO for which a cash outflow has been made ($24 million and $21 million at December 31, 2023 and 2022, 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. Regulatory liabilities are treated in a consistent manner. At December 31, 2023 and 2022, regulatory assets for Con Edison and CECONY that did not earn a return consisted of the following items:

Regulatory Assets Not Earning a Return*
                  Con Edison                CECONY
(Millions of Dollars)2023202220232022
Unrecognized pension and other postretirement costs$—$78$—$78
Environmental remediation costs1,1059871,022903
Revenue taxes490414470397
Deferred derivative losses - long term1633114826
COVID-19 deferral for uncollectible accounts receivable291253288249
Other29282827
Deferred derivative losses - current269184253178
Total$2,347$1,975$2,209$1,858
*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 unbilled revenuesUtilities to fund mass transportation. The Utilities recover
CON EDISON ANNUAL REPORT 2023131


the majority of the revenue taxes over the remaining book lives of the electric and energy cost liabilities.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.
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, 20172023 and 2016,2022, 345,415,772 and 354,962,058 shares, respectively, of Con Edison ownedcommon stock were outstanding. At December 31, 2023 and 2022, 235,488,094 million shares of CECONY common stock were outstanding, all of the issuedwhich were owned by Con Edison. At December 31, 2023 and outstanding shares of common stock of the Utilities, the Clean Energy Businesses and2022, Con Edison Transmission. CECONY ownshad 33,753,963 and 23,210,700 treasury shares, respectively, including 21,976,200 shares of Con Edison stock which itthat 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.

In 2023, Con Edison entered into accelerated share repurchase agreements with two dealers to repurchase $1,000 million in aggregate of Con Edison’s Common Shares ($.10 par value) (Common Shares). Con Edison made payments of $1,000 million in aggregate to the dealers and received deliveries of 10,543,263 Common Shares in aggregate.

Capitalization of Con Edison
The outstandingAt December 31, 2023 and 2022, Con Edison's capitalization for each of the Companies is shown on its Consolidated Statement of Capitalization includes its outstanding common stock and for Con Edison includeslong-term debt and the outstanding long-term debt of the Utilities and for the 2022 period includes the long-term debt of 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–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 2018-20222024-2028 is as follows:
(Millions of Dollars)Con Edison(a)CECONY
2024$250$250
2025——
2026250250
2027430350
2028800800
(Millions of Dollars)Con Edison CECONY
2018$1,298 $1,200
2019578 475
2020791 350
2021544 —
2022335 —
(a)Amounts shown exclude $62 million of debt for Broken Bow II, a deferred project, which was classified as held for sale as of December 31,

2023 and is shown under “Project Debt Held for Sale" on Con Edison's Consolidated Statement of Capitalization. See "Assets Held for Sale" in Note A and Note X for additional information.
CON EDISON ANNUAL REPORT 2017123


CECONY has issued $450 million of tax–tax–exempt debt through the New York State Energy Research and Development Authority (NYSERDA) that currently bearbears 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, 20172023 and 20162022 are:
(Millions of Dollars)20232022
Long-Term Debt (including current portion) (a)Carrying
Amount		Fair
Value		Carrying
Amount		Fair
Value
Con Edison$22,177(b)$20,525(b)$20,796(c)$18,234(c)
CECONY21,06019,51719,08016,699
(Millions of Dollars)2017 2016
Long-Term Debt (including current portion) (a)
Carrying
Amount
 
Fair
Value
 
Carrying
Amount
 
Fair
Value
Con Edison$16,029 $18,147 $14,774 $16,093
CECONY$13,265 $15,163 $12,073 $13,268
(a)

132
Amounts shown are net of unamortized debt expense and unamortized debt discount of $142 million and $121 million for Con Edison and CECONY, respectively, as of December 31, 2017 and $134 million and $113 million for Con Edison and CECONY, respectively, as of December 31, 2016.CON EDISON ANNUAL REPORT 2023
Fair


(a)Amounts shown are net of unamortized debt expense and unamortized debt discount of $222 million and $215 million for Con Edison and CECONY, respectively, as of December 31, 2023 and $202 million and $195 million for Con Edison and CECONY, respectively, as of December 31, 2022.
(b)Amounts shown exclude the debt of Broken Bow II, a deferred project that was classified as held for sale as of December 31, 2023 and is shown under “Project Debt Held for Sale" on Con Edison's Consolidated Statement of Capitalization. The carrying value and fair value of Broken Bow II's long-term debt, including the current portion, as of December 31, 2023 was $62 million and $58 million, respectively. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note W and Note X.
(c)Amounts shown exclude the debt of the Clean Energy Businesses, that were classified as held for sale as of December 31, 2022. See "Assets 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. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note W and Note X.
The fair values of the Companies' long-term debt have been estimated primarily using available market information. For Con Edison, $17,511 millioninformation and $636 million of the fair value of long-term debt at December 31, 20172023 are classified as Level 2 and Level 3, respectively. For CECONY, $14,527 million and $636 million of the fair value of long-term debt at December 31, 2017 are classified as Level 2 and Level 3, respectivelyliabilities (see Note P)R). The $636 million of long-term debt classified as Level 3 is CECONY’s tax-exempt, auction-rate securities for which the market is highly illiquid and there is a lack of observable inputs.
At December 31, 2017 and 2016, long–term debt of Con Edison included $915 million and $845 million, respectively, of non-recourse debt secured by the pledge of the applicable renewable energy production projects of the Clean Energy Businesses. At December 31, 2017 and 2016, long-term debt of Con Edison included $7 million and $11 million, respectively, of Transition Bonds issued in 2004 by O&R’s New Jersey utility subsidiary through a special purpose entity.
Significant Debt Covenants
The significant debt covenants under the financing arrangements for the Companies' debentures and Con Edison's notes include obligations to pay principal and interest when due and covenants not to consolidate with or merge into any other corporationentity unless certain conditions are met. In addition, Con Edison's notes include covenants that the company shall continue its utility business in New York City and shall not permit its ratio of consolidated debt to consolidated capital to exceed 0.675 to 1 and include cross default provisions with respect to other indebtedness of the company or its material subsidiaries having a then outstanding principal balance in excess of $100 million. The Companies' debentures have no cross default provisions. The tax–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, 2017.2023.

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–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–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–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).

124CON EDISON ANNUAL REPORT 2017



Note D – Short-Term Borrowing
In December 2016,March 2023, Con Edison and the Utilities entered into a $2,500 million credit agreement (Credit(the Credit Agreement), that replaced a December 2016 credit agreement (the 2016 Credit Agreement), under which banks are committed to provide loans and letters of credit on a revolving credit basis. The Credit Agreement expires in December 2022.March 2028, unless extended for up to two additional one-year terms. There is a maximum of $2,250$2,500 million of credit available. The full amount is available to CECONY and $1,000$800 million (subject to increase up to $1,500$1,000 million) is available to Con Edison, including up to $1,200$900 million of letters of credit. The Credit Agreement supports the Companies’ commercial paper programs. The Companies have not borrowedLoans and letters of credit issued under the Credit Agreement. Agreement may also be used for other general corporate purposes. Any borrowings under the Credit Agreement would generally be at variable interest rates.

In March 2023, CECONY entered into a 364-Day Revolving Credit Agreement (the CECONY Credit Agreement) that replaced a March 2022 CECONY 364-Day Credit Agreement (the 2022 CECONY Credit Agreement), under which banks are committed to provide loans up to $500 million on a revolving credit basis. The CECONY Credit Agreement expires in March 2024 and supports CECONY’s commercial paper program. Loans and letters of credit issued under the CECONY Credit Agreement may also be used for other general corporate purposes. Any borrowings under the CECONY Credit Agreement would generally be at variable interest rates.

CON EDISON ANNUAL REPORT 2023133


At December 31, 2017,2023, Con Edison had $577$2,288 million of commercial paper outstanding, of which $150$1,903 million was outstanding under CECONY’s program. The weighted average interest rate at December 31, 20172023 was 1.85.6 percent for both Con Edison and CECONY. At December 31, 2016,2022, Con Edison had $1,054$2,640 million of commercial paper outstanding of which $600$2,300 million was outstanding under CECONY’s program. The weighted average interest rate at December 31, 20162022 was 1.04.8 percent for both Con Edison and CECONY.


At December 31, 2017 and 2016,2023, no loans were outstanding under the credit agreement (Credit Agreement). An immaterial amount and $2 million (including $2 million for CECONY) ofor letters of credit were outstanding under the Credit Agreement as ofand no loans were outstanding under the CECONY Credit Agreement. At December 31, 20172022, no loans and an immaterial amount of letters of credit were outstanding under the 2016 respectively.Credit Agreement and no loans were outstanding under the 2022 CECONY Credit Agreement.

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 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 thethat company exceeding at any time of a ratio of consolidated debt to consolidated total capital of 0.65 to 1 (at December 31, 20172023 this ratio was 0.510.54 to 1 for Con Edison and 0.520.55 to 1 for CECONY); that company having liens on its assets in an aggregate amount exceeding fiveten percent of its consolidated total capital,net tangible assets, subject to certain exceptions; andthat 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 failure, followingoccurrence of an event or condition which results in the acceleration of the maturity of any applicable notice period,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 meet certainaccelerate the maturity thereof; and other customary covenants.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, 2017.2023.

See Note SU for information about short-term borrowing between related parties.
Note E – Pension Benefits
Con Edison maintains a tax-qualified, non-contributory pension plan, the Consolidated Edison Retirement Plan, that covers substantially all employees of CECONY, O&R and Con Edison Transmission and certain employees of the Clean Energy Businesses.Transmission. The plan is designed to comply with the Internal Revenue Code and the Employee Retirement Income Security Act of 1974. In addition, Con Edison also maintains additional non–qualified supplemental pension plans.
Total Periodic Benefit CostCost/(Credit)
The components of the Companies’ total periodic benefit costscost/(credit) for 2017, 20162023, 2022 and 20152021 were as follows:
  Con EdisonCECONY
(Millions of Dollars)202320222021202320222021
Service cost – including administrative expenses$161$287$343$151$270$321
Interest cost on projected benefit obligation649505471611475443
Expected return on plan assets(1,114)(1,168)(1,096)(1,061)(1,109)(1,040)
Recognition of net actuarial loss/(gain)(232)377787(219)358746
Recognition of prior service credit(17)(16)(17)(19)(21)(19)
TOTAL PERIODIC BENEFIT COST/(CREDIT)$(553)$(15)$488$(537)$(27)$451
Cost capitalized(81)(137)(154)(78)(129)(146)
Reconciliation to rate level282259(226)261245(216)
Total expense/(benefit) recognized$(352)$107$108$(354)$89$89
  Con EdisonCECONY
(Millions of Dollars)2017
2016
20152017
2016
2015
Service cost – including administrative expenses$263$275$297$246$258$279
Interest cost on projected benefit obligation591596575554559538
Expected return on plan assets(968)(947)(886)(917)(898)(840)
Recognition of net actuarial loss595596775563565734
Recognition of prior service costs(17)44(19)22
NET PERIODIC BENEFIT COST$464$524$765$427$486$713
Amortization of regulatory asset (a)—
—
1—
—
1
TOTAL PERIODIC BENEFIT COST$464$524$766$427$486$714
Cost capitalized(181)(214)(301)(169)(203)(285)
Reconciliation to rate level(34)54(74)(41)58(74)
Cost charged to operating expenses$249$364$391$217$341$355

(a) Relates to an increaseAccounting 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 CECONY’s pension obligationthe line "Other operations and maintenance" and the non-service cost components are included in the lines "Other income" or “Other deductions” in the Companies' consolidated income statements. The rules also require disclosure of $45 million from a 1999 special retirement program.

the weighted-average interest

134
CON EDISON ANNUAL REPORT 20171252023




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, 2017, 20162023, 2022 and 20152021 was as follows:
Con EdisonCECONY
(Millions of Dollars)202320222021202320222021
CHANGE IN PROJECTED BENEFIT OBLIGATION
Projected benefit obligation at beginning of year$12,113$17,357$18,965$11,395$16,341$17,821
Service cost – excluding administrative expenses156283337146266317
Interest cost on projected benefit obligation649505471611475443
Net actuarial loss/(gain)599(5,102)(1,547)572(4,845)(1,441)
Plan amendments3 —————
Benefits paid(808)(930)(869)(747)(842)(799)
PROJECTED BENEFIT OBLIGATION AT END OF YEAR$12,712$12,113$17,357$11,977$11,395$16,341
CHANGE IN PLAN ASSETS
Fair value of plan assets at beginning of year$14,979$18,504$17,022$14,248$17,566$16,147
Actual return on plan assets1,261(2,583)1,9351,201(2,453)1,838
Employer contributions21304691817432
Benefits paid(808)(930)(869)(747)(842)(799)
Administrative expenses(49)(42)(53)(46)(40)(52)
FAIR VALUE OF PLAN ASSETS AT END OF YEAR$15,404$14,979$18,504$14,674$14,248$17,566
FUNDED STATUS$2,692$2,866$1,147$2,697$2,853$1,225
Unrecognized net loss/(gain)$(757)($1,485)$205$(705)($1,397)$207
Unrecognized prior service credits(105)(124)(140)(124)(143)(163)
Accumulated benefit obligation$11,739$11,167$15,469$11,031$10,478$14,504
 Con EdisonCECONY
(Millions of Dollars)201720162015
2017
20162015
CHANGE IN PROJECTED BENEFIT OBLIGATION      
Projected benefit obligation at beginning of year$14,095$14,377$15,081$13,203$13,482$14,137
Service cost – excluding administrative expenses259271293241254274
Interest cost on projected benefit obligation591596575554559538
Net actuarial loss/(gain)1,231(302)(996)1,171(282)(931)
Plan amendments6(256)—
—
(259)—
Benefits paid(646)(591)(576)(602)(551)(536)
PROJECTED BENEFIT OBLIGATION AT END OF YEAR$15,536$14,095$14,377$14,567$13,203$13,482
CHANGE IN PLAN ASSETS      
Fair value of plan assets at beginning of year$12,472$11,759$11,495$11,815$11,141$10,897
Actual return on plan assets2,0418291261,935787118
Employer contributions450508750412469697
Benefits paid(646)(591)(576)(602)(551)(536)
Administrative expenses(43)(33)(36)(41)(31)(35)
FAIR VALUE OF PLAN ASSETS AT END OF YEAR$14,274$12,472$11,759$13,519$11,815$11,141
FUNDED STATUS$(1,262)$(1,623)$(2,618)$(1,048)$(1,388)$(2,341)
Unrecognized net loss$2,760$3,157$3,909$2,624$2,995$3,704
Unrecognized prior service costs(223)(244)16(242)(258)3
Accumulated benefit obligation13,89712,65512,90912,97211,80612,055

The increasedecrease in the pension plan’s fair value of plan assets was the primary cause of the decreased pension liabilityfunded status at December 31, 2023 for Con Edison and CECONY of $361$174 million and $340$156 million, respectively, compared with December 31, 2016.2022, was primarily due to an increase in the plan's projected benefit obligation as a result of a decrease in the discount rate, partially offset by a return on plan assets that was greater than the expected return. 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. See below for further information on the change in the discount rate and determination of the discount rate assumption. For Con Edison, thisthe 2023 decrease in pension liabilityfunded status asset corresponds with a decrease to regulatory assetsliabilities of $368$741 million for unrecognized net lossesgains and unrecognized prior service costscredits associated with the Utilities consistent with the accounting rules for regulated operations, a creditdebit to OCI of $4$1 million (net of taxes) for the unrecognized net losses,gains, and an immaterial change to OCI (net of taxes) for the unrecognized prior service credits associated with certain employees of Con Edison Transmission and RECO who previously worked for the Utilities. For 2023, included within the funded status are noncurrent liabilities of $337 million and $313 million for Con Edison and CECONY, respectively. For 2022, included within the funded status are noncurrent liabilities of $311 million and $287 million for Con Edison and CECONY, respectively.
For CECONY, the decrease in pension funded status asset at December 31, 2023 corresponds with a decrease to regulatory liabilities of $710 million for unrecognized net gains and unrecognized prior service credits consistent with the accounting rules for regulated operations, and also a debit to OCI of $2 million (net of taxes) for unrecognized net gains, and an immaterial change to OCI (net of taxes) for the unrecognized prior service costs associated with the Clean Energy Businesses,certain employees of Con Edison Transmission and RECO.
For CECONY, the decrease in pension liability corresponds with a decrease to regulatory assets of $353 million for unrecognized net losses and unrecognized prior service costs consistent with the accounting rules for regulated operations, a credit to OCI of $1 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 the Clean Energy Businesses and Con Edison Transmission.
A portion of the unrecognized net loss and prior service cost for the pension plan, equal to $689 million and $(17) million, respectively, will be recognized from accumulated OCI and the regulatory asset into net periodic benefit cost over the next year for Con Edison. Included in these amounts are $654 million and $(19) million, respectively,who previously worked for CECONY.
At December 31, 20172023 and 2016,2022, Con Edison’s investments include $330included $524 million and $273$459 million, respectively, held in external trust accounts for benefit payments pursuant to the supplemental retirement plans. Included in these amounts for CECONY were $301$502 millionand $246$439 million, respectively. See Note P.R. The accumulated benefit obligations for the supplemental retirement plans for Con Edison and CECONY were $331$349 million and $297$323 million as of December 31, 20172023, respectively, and $303$306 million and $268$280 million as of December 31, 2016,2022, respectively.

126CON EDISON ANNUAL REPORT 20172023135





Assumptions
The actuarial assumptions were as follows:
202320222021
Weighted-average assumptions used to determine benefit obligations at December 31:
Discount rate5.15 %5.45 %3.00 %
Interest crediting rate for cash balance plan4.20 %4.00 %3.50 %
Rate of compensation increase
CECONY3.80 %3.80 %3.80 %
O&R3.20 %3.20 %3.20 %
Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31:
Discount rate5.45 %3.00 %2.55 %
Interest crediting rate for cash balance plan4.00 %3.50 %3.00 %
Expected return on plan assets6.75 %7.00 %7.00 %
Rate of compensation increase
CECONY3.80 %3.80 %3.80 %
O&R3.20 %3.20 %3.20 %
 2017
2016
2015
Weighted-average assumptions used to determine benefit obligations at December 31:   
Discount rate3.70%4.25%4.25%
Rate of compensation increase   
CECONY4.25%4.25%4.25%
O&R4.00%4.00%4.00%
Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31:   
Discount rate4.25%4.25%3.90%
Expected return on plan assets7.50%7.80%7.80%
Rate of compensation increase   
CECONY4.25%4.25%4.25%
O&R4.00%4.00%4.00%

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 yieldsdiscounting plan specific cash flows with corresponding spot rates on selected highlya yield curve. Term structures of interest rates are based on AA rated (Aa or higher by either Moody’s or Standard & Poor’s) corporate bonds. Bonds with insufficient liquidity, 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), and the amount of the bond issue outstanding must be in excess of $50 million.. 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)201820192020202120222023-2027(Millions of Dollars)202420252026202720282029-2033
Con Edison$728$738$753$765$778$4,083Con Edison$768$817$789$804$811$4,158
CECONY6776867007127243,804CECONY7117627347507563,891
Expected Contributions
Based on estimates as of December 31, 2017,2023, the Companies expect to make contributions to the pension plans during 20182024 of $473$11 million (of which $435$9 million is to be contributedmade 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.

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CON EDISON ANNUAL REPORT 2023


Plan Assets
The asset allocations for the pension plan at the end of 2017, 20162023, 2022 and 2015,2021, and the target allocation for 20182024 are as follows:

CON EDISON ANNUAL REPORT 2017127


Target
Allocation Range
            Plan Assets at December 31,
Target
Allocation Range
           Plan Assets at December 31,
Asset Category2018 2017
 2016
 2015
Asset Category2024202320222021
Equity Securities53% - 63% 58% 58% 57%Equity Securities26% - 30%26 %33 %50 %
Debt Securities28% - 38% 33% 33% 33%Debt Securities42% - 60%50 %50 %38 %
Real Estate7% -11% 9% 9% 10%
Real Estate and Other AlternativesReal Estate and Other Alternatives14% - 30%24 %17 %12 %
Total100% 100% 100% 100%Total100 %100 %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 Management Development and CompensationNamed Fiduciary Committee of the Board of Directors (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 20182024 reflects the results of such a study conducted in 2016.2022.
Individual fund managers operate under written guidelines provided by Con Edison whichthat 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 and report to the Committee regarding, asset class performance, total fund performance, and compliance with asset allocation guidelines. Management changes fund managers and rebalances the portfolio as appropriate. At the direction of the named fiduciaries, such changes are reported to the Committee.
Assets measured at fair value on a recurring basis are summarized below as defined by the accounting rules for fair value measurements (see Note P)R).

128CON EDISON ANNUAL REPORT 20172023137





The fair values of the pension plan assets at December 31, 20172023 by asset category are as follows:
(Millions of Dollars)Level 1Level 2Total
Investments within the fair value hierarchy
U.S. Equity (a)$2,474$1 $2,475
International Equity (b)1,584—1,584
U.S. Government Issued Debt (c)—615615
Corporate Bonds Debt (d)—5,5265,526
Structured Assets Debt (e)—132132
Other Fixed Income Debt (f)—1,2101,210
Cash and Cash Equivalents (g)36302338
Futures (h)19 — 19 
Total investments within the fair value hierarchy$4,113$7,786$11,899
Investments measured at NAV per share (n)
Private Equity (i)1,031
Real Estate (j)1,876
Hedge Funds (k)723
Total investments valued using NAV per share$3,630
Funds for retiree health benefits (l)(52)(96)(148)
Funds for retiree health benefits measured at NAV per share (l)(n)(45)
Total funds for retiree health benefits$(193)
Investments (excluding funds for retiree health benefits)$4,061$7,690$15,336
Pending activities (m)  68
Total fair value of plan net assets  $15,404
(Millions of Dollars)Level 1
 Level 2
 Total
Investments within the fair value hierarchy     
U.S. Equity (a)$3,872 $28 $3,900
International Equity (b)4,132 —
 4,132
U.S. Government Issued Debt (c)—
 1,786 1,786
Corporate Bonds Debt (d)—
 2,450 2,450
Structured Assets Debt (e)—
 3 3
Other Fixed Income Debt (f)—
 125 125
Cash and Cash Equivalents (g)124 352 476
Futures (h)308 —
 308
Total investments within the fair value hierarchy$8,436 $4,744 $13,180
Investments measured at NAV per share (n)

 

 
Private Equity (i)    336
Real Estate (j)    1,214
Hedge Funds (k)    251
Total investments valued using NAV per share
 
 $1,801
Funds for retiree health benefits (l)(168) (94) (262)
Funds for retiree health benefits measured at NAV per share (l)(n)
 
 (36)
Total funds for retiree health benefits
 
 $(298)
Investments (excluding funds for retiree health benefits)$8,268 $4,650 $14,683
Pending activities (m)    (409)
Total fair value of plan net assets    $14,274
(a)U.S. Equity is comprised of both actively- and passively-managed investments in domestic equity index funds and actively-managed small-capitalization equities.
(a)U.S. Equity includes both actively- and passively-managed assets with investments in domestic equity index funds and actively-managed small-capitalization equities.
(b)International Equity includes international equity index funds and actively-managed international equities.
(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 equity funds that are not exchange-traded.
(j)Real Estate investments include real estate funds based on appraised values that are broadly diversified by geography and property type.
(k)Hedge Funds are within a commingled structure which invests in various hedge fund managers who can invest in all financial instruments.
(l)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 reflects adjustments for available estimates at year end.
(n)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.

(b)International Equity is comprised of investments in international equity index funds and actively-managed international equities.
(c)U.S. Government Issued Debt is comprised of agency and treasury securities.
(d)Corporate Bonds Debt is comprised of debt issued by various corporations.
(e)Structured Assets Debt is comprised of commercial-mortgage-backed securities and collateralized mortgage obligations.
(f)Other Fixed Income Debt is comprised of municipal bonds, sovereign debt and regional governments.
(g)Cash and Cash Equivalents are comprised of short term investments, money markets, foreign currency and cash collateral.
(h)Futures are comprised of exchange-traded financial contracts encompassing U.S. Equity, International Equity and U.S. Government indices.
(i)Private Equity is comprised 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 $193 million at December 31, 2023. However, the managers also expect to make significant cash flow distributions in 2024 and 2025. 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 are 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 can invest in external hedge fund managers that pursue a wide array of strategies including event driven, fundamental long/short, relative value, directional trading, and direct sourcing. These investments seek to generate positive absolute returns with lower volatility than other investments. The various hedge fund managers can invest in all financial instruments. Substantially all of the investment could be liquidated within 18 months.
(l)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 reflects adjustments for available estimates at year end.
(n)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.

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CON EDISON ANNUAL REPORT 20171292023




The fair values of the pension plan assets at December 31, 20162022 by asset category are as follows:
(Millions of Dollars)Level 1
 Level 2
 Total
Investments within the fair value hierarchy     
U.S. Equity (a)$3,466 
$—
 $3,466
International Equity (b)3,187 371 3,558
U.S. Government Issued Debt (c)—
 1,337 1,337
Corporate Bonds Debt (d)—
 2,140 2,140
Structured Assets Debt (e)—
 1 1
Other Fixed Income Debt (f)—
 200 200
Cash and Cash Equivalents (g)147 389 536
Futures (h)296 68 364
Total investments within the fair value hierarchy$7,096 $4,506 $11,602
Investments measured at NAV per share (n)     
Private Equity (i)    247
Real Estate (j)    1,139
Hedge Funds (k)

   229
Total investments valued using NAV per share
 
 $1,615
Funds for retiree health benefits (l)(165) (105) (270)
Funds for retiree health benefits measured at NAV per share (l)(n)    (37)
Total funds for retiree health benefits    $(307)
Investments (excluding funds for retiree health benefits)$6,931 $4,401 $12,910
Pending activities (m)    (438)
Total fair value of plan net assets    $12,472
(Millions of Dollars)Level 1Level 2Total
Investments within the fair value hierarchy
U.S. Equity (a)$2,150$3 $2,153
International Equity (b)1,534—1,534
U.S. Government Issued Debt (c)—823823
Corporate Bonds Debt (d)—4,9614,961
Structured Assets Debt (e)—183183
Other Fixed Income Debt (f)—1,0881,088
Cash and Cash Equivalents (g)71 274345
Futures (h)(1)—(1)
Total investments within the fair value hierarchy$3,754$7,332$11,086
Investments measured at NAV per share (n)
Private Equity (i)1,018
Real Estate (j)2,366
Hedge Funds (k)657
Total investments valued using NAV per share$4,041
Funds for retiree health benefits (l)(48)(91)(139)
Funds for retiree health benefits measured at NAV per share (l)(n)(51)
Total funds for retiree health benefits$(190)
Investments (excluding funds for retiree health benefits)$3,706$7,241$14,937
Pending activities (m)  $42
Total fair value of plan net assets  $14,979
(a) - (n) Reference is made to footnotes (a) through (n) in the above table of pension plan assets at December 31, 20172023 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:
                For the Years Ended December 31,
(Millions of Dollars)202320222021
Con Edison$57$57$55
CECONY514846
                For the Years Ended December 31,
(Millions of Dollars)2017 2016 2015
Con Edison$40 $36 $34
CECONY35 32 29

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. Programs include the Consolidated Edison Retiree Health Program for
Management Employees, the Consolidated Edison Retiree Health Program for Weekly Employees, the Consolidated Edison Group Life Insurance Plan, the Orange and Rockland Utilities, Inc. Hourly Retirees’ Group Insurance Plan, and the Orange and Rockland Utilities, Inc. Management Retirees’ Group Insurance Plan.
Total Periodic Benefit Cost
The components of the Companies’ total periodic postretirement benefit costscosts/(credit) for 2017, 20162023, 2022 and 20152021 were as follows:

130CON EDISON ANNUAL REPORT 20172023139





  Con EdisonCECONY
(Millions of Dollars)202320222021202320222021
Service cost$14$18$22$12$15$16
Interest cost on accumulated other postretirement benefit obligation573533493028
Expected return on plan assets(70)(72)(68)(56)(58)(56)
Recognition of net actuarial loss/(gain)(16)(14)31(8)(9)27
Recognition of prior service credit(2)(1)(3)——(1)
TOTAL PERIODIC POSTRETIREMENT BENEFIT COST/(CREDIT)$(17)$(34)$15$(3)$(22)$14
Cost capitalized(6)(8)(9)(5)(7)(7)
Reconciliation to rate level429(7)(2)24(12)
Total credit recognized$(19)$(13)$(1)$(10)$(5)$(5)
  Con EdisonCECONY
(Millions of Dollars)201720162015201720162015
Service cost$20$18$20$13$13$15
Interest cost on accumulated other postretirement benefit obligation464851384043
Expected return on plan assets(69)(77)(78)(61)(67)(68)
Recognition of net actuarial loss2531(3)328
Recognition of prior service cost(17)(20)(20)(11)(14)(14)
TOTAL PERIODIC POSTRETIREMENT BENEFIT COST$(18)$(26)$4$(24)$(25)$4
Cost capitalized811(2)1010(2)
Reconciliation to rate level(4)2214(2)226
Cost charged to operating expenses$(14)$7$16$(16)$7$8
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, 2017, 20162023, 2022 and 20152021 were as follows:
Con EdisonCECONY Con EdisonCECONY
(Millions of Dollars)2017
2016
2015
2017
2016
2015
(Millions of Dollars)202320222021202320222021
CHANGE IN BENEFIT OBLIGATION   
Benefit obligation at beginning of year$1,198$1,287$1,411$1,007$1,093$1,203
Benefit obligation at beginning of year
Benefit obligation at beginning of year$1,058$1,398$1,425$921$1,189$1,209
Service cost2018201315Service cost141822121516
Interest cost on accumulated postretirement benefit obligation464851384043Interest cost on accumulated postretirement benefit obligation573533493028
Amendments—
—
—
—
—
—
Net actuarial loss/(gain)53(57)(103)16(52)(85)
Benefits paid and administrative expenses(134)(127)(124)(122)(117)
Net actuarial gainNet actuarial gain(93)(311)(13)(94)(239)(3)
Benefits paid and administrative expenses, net of subsidiesBenefits paid and administrative expenses, net of subsidies(128)(130)(117)(118)(121)(107)
Participant contributions36353534Participant contributions5548554746
BENEFIT OBLIGATION AT END OF YEAR$1,219$1,198$1,287$985$1,007$1,093BENEFIT OBLIGATION AT END OF YEAR$963$1,058$1,398$825$921$1,189
CHANGE IN PLAN ASSETS   
Fair value of plan assets at beginning of year$975$994$1,084$851$870$950
Fair value of plan assets at beginning of year
Fair value of plan assets at beginning of year$860$1,150$1,115$708$955$940
Actual return on plan assets15060(6)13052(4)Actual return on plan assets116(225)9284(187)67
Employer contributions1776876Employer contributions2213617103
EGWP payments343528303326
Employer group waiver plan subsidiesEmployer group waiver plan subsidies565521525019
Participant contributions3536353534Participant contributions5548554746
Benefits paid(172)(157)(153)(161)(146)(142)Benefits paid(180)(181)(132)(166)(167)(120)
FAIR VALUE OF PLAN ASSETS AT END OF YEAR$1,039$975$994$893$851$870FAIR VALUE OF PLAN ASSETS AT END OF YEAR$929$860$1,150$750$708$955
FUNDED STATUS$(180)$(223)$(293)$(92)$(156)$(223)FUNDED STATUS$(34)$(198)$(248)$(75)$(213)$(234)
Unrecognized net loss/(gain)$(47)$(24)$28$(85)$(42)$4Unrecognized net loss/(gain)($90)$37$41($41)$78$67
Unrecognized prior service costs(14)(31)(51)(7)(18)(32)Unrecognized prior service costs(10)(12)(13)—
The decrease in the other postretirement benefits funded status liability at December 31, 2023 for Con Edison and CECONY of $164 million and $138 million, respectively, compared with December 31, 2022, was primarily due to updated per capita costs based on plan experience and higher asset returns in 2023. 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 was the primary causeas a result of the decreased liabilityactual return on plan assets. For 2023, included within the funded status are noncurrent assets of $224 million and $154 million for other postretirement benefits at Con Edison and CECONY, respectively. For 2022, included within the funded status are noncurrent assets of $43$72 million and $64$27 million respectively, compared with December 31, 2016. for Con Edison and CECONY, respectively.

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CON EDISON ANNUAL REPORT 2023


For Con Edison, this decreasedthe decrease in funded status liability at December 31, 2023 corresponds with ana net decrease to regulatory assets and increase to regulatory liabilities of $11$123 million for unrecognized net lossesgains and unrecognized prior service costs associated with the Utilities consistent with the accounting rules for regulated operations, a debitcredit to OCI of $3$2 million (net of taxes) for the unrecognized net lossesgains and an immaterial change to OCI (net of taxes) 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, 2023 corresponds with ana net decrease to regulatory assets and increase to regulatory liabilities of $32$119 million for unrecognized net lossesgains and the unrecognized prior service costs associated with the company consistent with the accounting rules for regulated operations, and an immaterial changea debit to OCI of $1 million (net of taxes) for the unrecognized net lossesgains and an immaterial change to OCI for the unrecognized prior service costs associated with the Clean Energy Businesses andeligible employees of Con Edison Transmission.

CON EDISON ANNUAL REPORT 2017131


A portion of the unrecognized net losses and prior service costs for the other postretirement benefits, equal to $8 million and $(6) million, respectively, will be recognized from accumulated OCI and the regulatory asset into net periodic benefit cost over the next year for Con Edison. Included in these amounts are $1 million and $(2) million, respectively,Transmission who previously worked for CECONY.
Assumptions
The actuarial assumptions were as follows:
2017
2016
2015
2023202320222021
Weighted-average assumptions used to determine benefit obligations at December 31: 
Discount Rate 
Discount Rate
Discount Rate
CECONY
CECONY
CECONY3.55%4.00%4.05%5.05 %5.35 %2.75 %
O&R3.70%4.20%4.20%O&R5.15 %5.45 %3.00 %
Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31: 
Discount Rate 
Discount Rate
Discount Rate
CECONY
CECONY
CECONY4.00%4.05%3.75%5.35 %2.75 %2.25 %
O&R4.20%4.20%3.85%O&R5.45 %3.00 %2.55 %
Expected Return on Plan Assets7.50%7.00%7.75%Expected Return on Plan Assets6.80 %6.80 %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 raterates for covered medical and prescription medication expenses used to determine net periodic benefit cost for the year ended December 31, 2017 was 5.80 percent, which is assumed to decrease gradually to 4.50 percent by 2024 and remain at that level thereafter. The health care cost trend rate used to determineaccumulated other postretirement benefit obligations as of December 31, 2017 was 5.60 percent, which is assumed to decrease gradually to 4.50 percent by 2024 and remain at that level thereafter.
A one-percentage point change in the assumed health care cost trend rate would have the following effects(APBO) at December 31, 2017:2023 were assumed to increase each year, with the initial rate gradually decreasing to the ultimate rate as follows:
Initial Cost Trend RateUltimate Cost Trend RateYear That Ultimate Rate is Reached
Pre-65 Medical6.80%4.50%2036
Post-65 Medical4.50%4.50%—
Prescription Medications7.25%4.50%2035
  Con EdisonCECONY
  1-Percentage-Point
(Millions of Dollars)IncreaseDecrease
IncreaseDecrease
Effect on accumulated other postretirement benefit obligation$13$11$(20)$35
Effect on service cost and interest cost components for 20172—
(1)1

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:subsidies and participant contributions:
(Millions of Dollars)201820192020202120222023-2027(Millions of Dollars)202420252026202720282029-2033
Con Edison$83$81$78$76$75$363Con Edison$68$72$73$353
CECONY7370676564303CECONY606364308
Expected Contributions
Based on estimates as of December 31, 2017,2023, Con Edison and CECONY expectexpects to make a contribution of $7 million (substantially all(all of which is expected to be contributedmade by CECONY) to the other postretirement benefit plans in 2018.2024. The Companies’ policy is to fund the total periodic benefit cost of the plans to the extent tax deductible.

132CON EDISON ANNUAL REPORT 20172023141





Plan Assets
The asset allocations for CECONY’s other postretirement benefit plans at the end of 2017, 20162023, 2022 and 2015,2021, and the target allocation for 20182024 are as follows:
Target Allocation Range Plan Assets at December 31, Target Allocation RangePlan Assets at December 31,
Asset Category2018 2017
 2016
 2015
Asset Category2024202320222021
Equity Securities50%-80% 60% 60% 59%Equity Securities35%-55%44 %49 %55 %
Debt Securities20%-50% 40% 40% 41%Debt Securities40%-60%51 %51 %45 %
Real Estate and Other AlternativesReal Estate and Other Alternatives—%-9%5 %— %— %
Total100% 100% 100% 100%Total100%100 %100 %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 planplans' assets at December 31, 20172023 by asset category as defined by the accounting rules for fair value measurements (see Note P)R) are as follows:
(Millions of Dollars)Level 1Level 2Total
Equity (a)$—$331$331
Other Fixed Income Debt (b)—323323
Cash and Cash Equivalents (c)71825
Asset Allocation Funds (d)—3838
Total investments$7$710$717
Funds for retiree health benefits (e)5296148
Investments (including funds for retiree health benefits)$59$806$865
Funds for retiree health benefits measured at net asset value (e)(f)45
Pending activities (g)  19
Total fair value of plan net assets  $929
(Millions of Dollars)Level 1
 Level 2 Total
Equity (a)
$—
 $420 $420
Other Fixed Income Debt (b)—
 286 286
Cash and Cash Equivalents (c)—
 16 16
Total investments
$—
 $722 $722
Funds for retiree health benefits (d)168
 94 262
Investments (including funds for retiree health benefits)
$168
 $816 $984
Funds for retiree health benefits measured at net asset value (d)(e)    36
Pending activities (f)    19
Total fair value of plan net assets    $1,039
(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 Barclays Capital Aggregate 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.
(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.
(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.

(a)Equity is comprised of a passively managed commingled index fund benchmarked to the MSCI All Country World Index.

(b)Other Fixed Income Debt is comprised of 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 is comprised of short-term investments and money markets.
(d)Asset Allocation Funds is comprised of investments in a global asset allocation fund.
(e)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.
(f)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.
(g)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.

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The fair values of the planplans' assets at December 31, 20162022 by asset category (see Note P)R) are as follows:
(Millions of Dollars)Level 1
 Level 2 Total(Millions of Dollars)Level 1Level 2Total
Equity (a)
$—
 $391 $391Equity (a)$—$339
Other Fixed Income Debt (b)—
 250 250Other Fixed Income Debt (b)10275285
Cash and Cash Equivalents (c)—
 13 13Cash and Cash Equivalents (c)—25
Total investments
$—
 $654 $654Total investments$10$639$649
Funds for retiree health benefits (d)165
 105 270Funds for retiree health benefits (d)4891139
Investments (including funds for retiree health benefits)
$165
 $759 $924Investments (including funds for retiree health benefits)$58$730$788
Funds for retiree health benefits measured at net asset value (d)(e)  37Funds for retiree health benefits measured at net asset value (d)(e)51
Pending activities (f)    14Pending activities (f)  21
Total fair value of plan net assets    $975Total fair value of plan net assets  $860
(a) - (f) Reference is made to footnotes (a) through (f) in the above table of other postretirement benefit plan assets at December 31, 20172023 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, 20172023 and 20162022 were as follows:
                  Con Edison                 CECONY                   Con Edison                CECONY
(Millions of Dollars)2017 2016 2017 2016(Millions of Dollars)2023202220232022
Accrued Liabilities:   
Manufactured gas plant sites$651 $664 $551 $567
Manufactured gas plant sites
Manufactured gas plant sites$1,016$876$924$782
Other Superfund Sites86 89 86 88Other Superfund Sites102121102121
Total$737 $753 $637 $655Total$1,118$997$1,026$903
Regulatory assets$793 $823 $677 $711Regulatory assets$1,105$991$1,022$906
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,

134CON EDISON ANNUAL REPORT 2017



the Utilities expect that additional liability may be accrued, the amount of which is not presently determinable but
CON EDISON ANNUAL REPORT 2023143


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, 20172023 and 20162022 were as follows:
                 Con Edison                  CECONY                  Con Edison                 CECONY
(Millions of Dollars)2017 2016 2017 2016(Millions of Dollars)2023202220232022
Remediation costs incurred$24 $34 $19 $21Remediation costs incurred$13$21$12$20
Insurance and other third party recoveries received by Con Edison or CECONY were immaterial in 2017. Con Edison2023 and CECONY received $1 million in insurance and other third party recoveries in 2016.2022.
ConCon Edison and CECONY estimate that in 20182024 they will incur costs for remediation of approximately $47$62 million and $34$60 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 2017,2023, 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 $2.7 billion$3,440 million and $2.5 billion,$3,295 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 New York 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, whichthat 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, 2017,2023, 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 yearsthrough 2035 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,applied, 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, 20172023 and 20162022 were as follows:
                  Con Edison               CECONY
(Millions of Dollars)2023202220232022
Accrued liability – asbestos suits$8$8$7$7
Regulatory assets – asbestos suits8877
Accrued liability – workers’ compensation56615459
Regulatory liabilities – workers’ compensation17111711
                  Con Edison                CECONY
(Millions of Dollars)2017 2016 2017 2016
Accrued liability – asbestos suits$8 $8 $7 $7
Regulatory assets – asbestos suits$8 $8 $7 $7
Accrued liability – workers’ compensation$84 $88 $80 $83
Regulatory assets – workers’ compensation$10 $13 $10 $13





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CON EDISON ANNUAL REPORT 20171352023




Note H – Other 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,CECONY, 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 companyCECONY that allowed gas to leak from the distribution main and migrate into a building where it ignited and (2) a breach in a Citycity sewer line that allowed groundwater and soil to flow into the sewer, resulting in a loss of support for the distribution main, whichthat caused it to sag and overstressed the defective fusion joint. The NTSB also made safety recommendations, including recommendations to the companyCECONY that addressed its procedures for the preparation and examination of plastic fusions, training of its staff on conditions for notifications to the City’scity’s Fire Department and extension of its gas main isolation valve installation program. In February 2017, the NYSPSC approved a settlement agreement with the companyCECONY 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 will provideCECONY provided $27 million of future benefits to customers (for which it has accrued a regulatory liability, see Note B)liability) and willdid not recover from customers $126 million of costs for gas emergency response activities that it had previously incurred and expensed. Approximately eighty suitsLawsuits are pending against the companyCECONY seeking generally unspecified damages and, in some cases, punitive damages, for wrongful death, personal injury, property damage and business interruption. The company hasCECONY notified its insurers of the incident and believes that the policies in force at the time of the incident will cover the company’sCECONY'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. The company is unable to estimateDuring 2020, CECONY accrued its estimated liability for the suits of $40 million and an insurance receivable in the same amount, or rangeand such estimated liability and receivable did not change as of its possible loss for damages related to the incident. At December 31, 2017, the company had not accrued a liability for damages related to the incident.2023.

Other Contingencies
SeeFor additional contingencies, see “Other Regulatory Matters” in Note B, Note G and "Uncertain Tax Positions" in Note L.

Guarantees
Con Edison and its subsidiaries enterhave entered into various agreements providing financial or performance assurance primarily to third parties on behalf of their subsidiaries. In addition, Con Edison has provided guarantees to third parties on behalf of the Clean Energy Businesses, that are in the process of being transferred to the buyer of the Clean Energy Businesses, RWE Aktiengesellschaft (RWE). Maximum amounts guaranteed by Con Edison and its subsidiaries under these agreements totaled $2,073$175 million and $2,370$2,412 million at December 31, 20172023 and 2016,2022, respectively.
A summary, by type and term, of Con Edison’s total guarantees under these other agreements at December 31, 20172023 is as follows:
Guarantee Type0 – 3 years4 – 10 years> 10 yearsTotal
 (Millions of Dollars)
Con Edison Transmission$76$—$—$76
Guarantees on behalf of the Clean Energy Businesses(a)58—3290
Broken Bow II——99
Total$134$—$41$175
Guarantee Type0 – 3 years 4 – 10 years
 > 10 years
 Total
 (Millions of Dollars)
Con Edison Transmission$643 $404 
$—
 $1,047
Energy transactions431 27 211 669
Renewable electric production projects210 —
 24 234
Other123 —
 —
 123
Total$1,407 $431 $235 $2,073
(a) On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note W and Note X. Guarantee amount shown represents guarantees issued on behalf of the Clean Energy Businesses that remain outstanding at December 31, 2023. Prior to and following the sale, RWE, with Con Edison's assistance, engaged in the process of transferring responsibility for these guarantees from Con Edison to RWE and that process is ongoing. Pursuant to the purchase and sale agreement, RWE is obligated to reimburse and hold harmless Con Edison for any payments Con Edison makes under guarantees issued by Con Edison on behalf of the Clean Energy Businesses. As of December 31, 2023, no such payments have been, or are probable of being, made.

Con Edison Transmission – Con Edison has guaranteed payment by CET ElectricCon Edison Transmission of the contributions CET ElectricCon Edison Transmission agreed to make to New York Transco LLC (NY(New York Transco). CET Electric acquiredCon Edison
CON EDISON ANNUAL REPORT 2023145


Transmission owns a 45.7 percent interest in NY Transco when it was formed in 2014. In May 2016, the transmission owners transferred certain projects to NY Transco, for which CET Electric made its required contributions. NY Transco has proposed other transmission projects in the New York Independent System Operator's competitive bidding process. These other projects are subject to certain authorizations fromTransco's New York Energy Solution project, the NYSPSC, the FERC and, as applicable, other federal, state and local agencies.majority of which has been completed. Guarantee amount shown is forincludes the maximum possible required amount of CET Electric'sCon Edison Transmission's contributions for these other projectsthe remainder of this project as calculated based on the assumptions that the projects areproject is completed at 175 percent of theirits estimated remaining costs and NYNew York Transco does not use any debt financing for the projects. Guarantee term shown isproject.


136CON EDISON ANNUAL REPORT 2017



assumed as the selection of the projects and resulting timing of the contributions is not certain. Also included within the table above is a guarantee for $25 million from Broken Bow II —Con Edison has guaranteed obligations on behalf of CET GasBroken Bow II associated with its investment in relation to a proposed gas transmission project in West Virginia and Virginia.wind energy facility. Broken Bow II is held for sale as of December 31, 2023. See Note U.X.
Energy Transactions — Con Edison guarantees payments on behalf of the Clean Energy Businesses 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 Production Projects – Con Edison, Con Edison Development and Con Edison Solutions 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 $70 million in guarantees provided by Con Edison to Travelers Insurance Company for indemnity agreements for surety bonds in connection with operation of solar energy facilities and energy service projects of Con Edison Development and Con Edison Solutions, respectively. Other guarantees also include Con Edison's guarantee (subject to a $53 million maximum amount) of certain obligations of Con Edison Solutions under the agreement pursuant to which it sold its retail electric supply business. See Note U.
Note I – Electricity and Gas Purchase Agreements
The Utilities have electricity purchase agreements with non-utility generators and others for generating capacity.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.
At December 31, 2017, the significant terms of the electricity purchase agreements with non-utility generators were as follows:
FacilityEquity Owner
Plant
Output
(MW)

Contracted
Output
(MW)
Contract
Start
Date
Contract
Term
(Years)
Brooklyn Navy YardBrooklyn Navy Yard Cogeneration Partners, LP322
303November 199640
Indian Point (a)Entergy Nuclear Power Marketing, LLC2,150
500August 200116
(a) A portion of this contract ended in 2017 and a portion ends in 2018.
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 contractselectricity and gas purchase agreements are estimated to be as follows:
(Millions of Dollars)2018 2019 2020 2021 2022 
All Years
Thereafter
(Millions of Dollars)20242025202620272028
All Years
Thereafter
Con Edison$257 $202 $114 $65 $54 $656Con Edison
Electricity power purchase agreementsElectricity power purchase agreements$155$89$59$44$346
Natural gasNatural gas29910117—
Gas transportation and storageGas transportation and storage5214864604093012,682
CECONY255 198 111 64 54 656CECONY
Electricity power purchase agreementsElectricity power purchase agreements151855844346
Natural gasNatural gas25896—
Gas transportation and storageGas transportation and storage4504203983532592,311
For energy delivered and gas purchased under most of the electricity and gas purchase agreements, CECONY isthe 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 2017, 20162023, 2022 and 20152021 were as follows:

               For the Years Ended December 31,
(Millions of Dollars)202320222021
Con Edison
Astoria Generating Company (a)$40$45$20
Brooklyn Navy Yard (b)134165139
Gas Transportation and Storage (c)372386393
Total$546$596$552
CECONY
Astoria Generating Company (a)$40$45$20
Brooklyn Navy Yard (b)134165139
Gas Transportation and Storage (c)327340347
Total$501$550$506
(a) Capacity purchase agreements with terms ending in 2023 through 2025.
(b) Contract for plant output, which started in 1996 and ends in 2036.
(c) Contracts for various counterparties and terms extending through 2044.



146
CON EDISON ANNUAL REPORT 20171372023




                For the Years Ended December 31,
(Millions of Dollars)2017
 2016
 2015
Linden Cogeneration (a)$114 $304 $323
Indian Point211 203 226
Astoria Energy (b)—
 50 178
Astoria Generating Company92 16 —
Brooklyn Navy Yard117 119 113
Indeck Corinth (c)—
 —
 25
Cogen Technologies18 —
 —
Total$552 $692 $865
(a) Contract term ended in 2017.
(b) Contract term ended in 2016.
(c) Contract term ended in 2015.

Note J – Leases
Con Edison’s subsidiariesThe Companies lease electric transmission facilities, gas distribution facilities, land, office buildings, equipment and equipment. In accordance withaccess 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 accounting rulesdefinition of a short-term lease, the expense for leases, these leaseswhich 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 capitaloperating leases or finance leases. Operating leases of the Utilities 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. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note W 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 operatingCompanies’ leases providehave remaining lease terms of one year to 20 years and may include options to renew or extend the optionleases for up to renewfive years at the fair rental value for future periods. Generally,value. The Companies' lease terms include options to renew, extend or terminate the lease when it is expectedreasonably certain that the Companies will exercise that option. There were no leases will be renewedwith material variable lease payments or replaced in the normal course of business.residual value guarantees. The Companies account for lease and non-lease components as a single lease component.
Capital leases: For ratemaking purposes capital leases are treated as operating leases; therefore, in accordance with the accounting rules
Operating lease cost and cash paid for regulated operations, the amortization of the leased asset is based on the rental payments recovered from customers. The following assets under capital leases areamounts included in the Companies’ consolidated balance sheets atmeasurement of lease liabilities for the years ended December 31, 20172023, 2022, and 2016:2021 were as follows:

                   Con Edison                   CECONY
(Millions of Dollars)2017 2016 2017 2016
UTILITY PLANT       
Common$2 $3 $1 $2
Con Edison (a)CECONY
(Millions of Dollars)202320222021202320222021
Operating lease cost$70 $88 $86 $66 $67 $66 
Operating lease cash flows$68 $83 $80 $65 $64 $63 
The(a)Amounts for Con Edison include amounts for the Clean Energy Businesses through February 2023. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note W and Note X.

As of December 31, 2023, 2022, and 2021, assets recorded as finance leases for Con Edison were $2 million for each year and the accumulated amortization associated with such finance leases were $2 million, $5 million, and $4 million, respectively. As of December 31, 2023, 2022, and 2021, assets recorded as finance leases for CECONY were $1 million for each year and the accumulated amortization associated with such finance leases were $2 million for each year.

For the years ended December 31, 2023, 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 $11 million for the year ended December 31, 2023 and $79 million and $68 million, respectively, for the year ended December 31, 2022 of which $10 million for Con Edison related to the Clean Energy Businesses. On March 1, 2023, Con Edison completed the sale of all of the capitalstock of the Clean Energy Businesses. See Note W and Note X.

Other information related to leases for Con Edison and CECONY was $3 million and $2 million, respectively at December 31, 2017,2023 and $3 million2022 was as follows:

CON EDISON ANNUAL REPORT 2023147


Con EdisonCECONY
2023202220232022
Weighted Average Remaining Lease Term:
Operating leases, (a) (b)11.4 years12.3 years11.4 years12.4 years
Finance leases6.6 years7.2 years2.7 years2.3 years
Weighted Average Discount Rate:
Operating leases, (a) (b)3.7%3.7%3.7%3.7%
Finance leases3.0%1.9%3.1%1.0%
(a)Amounts for Con Edison in 2022 exclude operating leases of the Clean Energy Businesses, inclusive of Broken Bow II, that were classified as held for sale as of December 31, 2022. Including the operating leases of the Clean Energy Businesses would result in a weighted average remaining lease term of 18.3 years and $1 million, respectivelya weighted average discount rate of 4.4 percent as of December 31, 2022. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note W and Note X.
(b)Amounts for Con Edison in 2023 exclude the operating lease of Broken Bow II, that was classified as held for sale as of December 31, 2023. Including the operating lease of Broken Bow II would result in a weighted average remaining lease term of 11.6 years and a weighted average discount rate of 3.8 percent as of December 31, 2023. See Note W and Note X.
Future minimum lease payments under non-cancellable leases at December 31, 2016.2023 were as follows:
Operating leases: The
(Millions of Dollars)Con EdisonCECONY
Year Ending December 31, (b)Operating LeasesFinance LeasesOperating LeasesFinance Leases
2024$67$1$66$1
202566—66—
202666—66—
202765—65—
202860—60—
All years thereafter3651365—
Total future minimum lease payments$689$2$688$1
Less: imputed interest(144)—(143)—
Total$545$2$545$1
Reported as of December 31, 2023
Operating lease liabilities (current) (a)$116$—$116$—
Operating lease liabilities held for sale (current)2———
Operating lease liabilities (noncurrent) (a)429—429—
Operating lease liabilities held for sale (noncurrent)5———
Other current liabilities—1—1
Other noncurrent liabilities—1——
Total$552$2$545$1
(a)Amounts exclude operating lease liabilities of Broken Bow II ($7 million) that are classified as current and noncurrent liabilities held for sale on Con Edison's consolidated balance sheet as of December 31, 2023. See Note X.
(b)Amounts exclude operating lease future minimum lease commitmentspayments of Broken Bow II, of $3 million in total for years ended December 31, 2024 through 2028, and $10 million for all years thereafter, and imputed interest of $6 million.
The Companies are lessors under the Companies’ operating lease agreements that are not cancellable bycertain leases whereby the Companies are as follows: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 years ended December 31, 2023 and 2022.

(Millions of Dollars)Con Edison CECONY
2018$63 $55
201963 56
202063 55
202162 54
202259 53
All years thereafter746 645
Total$1,056 $918
Substantially all of the amounts shown in the above table are estimated amounts payable under CECONY’s revocable consent agreement with New York City for the use of streets and public places for installation and operation of transformers and associated vaults and equipment. Under the agreement, payments by CECONY increase 2.18 percent annually and are subject to decrease if CECONY’s transformer installations decrease by ½ of 1 percent or more from the prior year. For information about changes to the accounting rules for leases, see Note T.

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CON EDISON ANNUAL REPORT 2023


Note K – Goodwill and Other Intangible Assets
In 2017, 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 elected to perform the optional qualitative assessment forhas recorded goodwill related to the O&R merger and the gas storage company, and the first stepacquisition of the quantitative testa portion of Honeoye. Further, included within Con Edison's assets held for the residential solar company. In 2016

138CON EDISON ANNUAL REPORT 2017



Con Edison performed the first stepsale as of the quantitative analysis for theDecember 31, 2022 is goodwill related to the O&R merger, the gas storage company, and theacquisitions of a residential solar company and deemed thata battery storage company by the second step assessment was not required.

In 2017 and 2016,Clean Energy Businesses. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note W and Note X.

In 2023 and 2022, Con Edison completed quantitative and qualitative impairment tests, respectively, 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 2017 and 2016,2021, Con Edison completed impairment tests for goodwilldetermined, based on a discounted cash flow analysis, that $7 million of $8 million related to a gas storage company acquired by CET Gas from Con Edison Development and determined that it was not impaired. In 2016, Con Edison completed impairment tests for goodwill of $15 million related to two energy services companies owned by the Clean Energy Businesses and determined that goodwill was impaired and, upon calculating the implied fair value of goodwill using fair values based primarily on discounted cash flows, recorded a corresponding impairment charge of $15 million ($12 million, net of tax). Additionally, in 2016, the Clean Energy Businesses acquired a residential solar company and recorded $14related to Honeoye, $5 million of goodwill as part of the preliminary purchase price allocation. In 2017,which was attributed to Con Edison determined thatTransmission and $2 million of which was attributed to CECONY. The remaining goodwill relatedattributable to the residential solar companyHoneoye was not impaired. material at December 31, 2023 or 2022. No other impairments or triggering events were identified for Con Edison's goodwill for the years ending December 31, 2023, 2022 or 2021.

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.


For information about changes to the accounting rules for goodwill, see Note T.

Con Edison's other intangible assets consist primarily of power purchase agreements, which were identified as part of purchase price allocations associated with acquisitions made by Con Edison Development in 2016. At December 31, 2017 and 2016, intangible assets arising from power purchase agreements were $131 million and $119 million, net of accumulated amortization of $9 million and $1 million, respectively, and are being amortized over the life of each agreement. Excluding power purchase agreements, Con Edison’s other intangible assets were an immaterial amount and $5 million, net of accumulated amortization of $6 million and $5 million, at December 31, 2017 and 2016, respectively. CECONY’s other intangible assets were immaterial at December 31, 2017 and 2016. Con Edison recorded amortization expense related to its intangible assets of $9 million in 2017, $2 million in 2016 and an immaterial amount in 2015. Con Edison expects amortization expense to be $9 million per year over the next five years.
Note L – Income Tax

The components of income tax are as follows:
  Con EdisonCECONY
(Millions of Dollars)202320222021202320222021
State
Current$179$5$14$(102)$—$1
Deferred632479246110106
Federal
Current17658 43(95)170121
Deferred23711761311(23)21
Amortization of investment tax credits(111)(6)(7)(2)(2)(3)
Total income tax expense$487$498$190$358$255$246
  Con Edison CECONY
(Millions of Dollars)2017 2016 2015 2017 2016 2015
State           
Current$(2) $(42) $38 $37 $(1) $48
Deferred103 188 93 75 114 82
Federal           
Current(11) (43) (86) 73 59 77
Deferred391 604 569 504 435 372
Amortization of investment tax credits(9) (9) (9) (4) (4) (5)
Total income tax expense$472 $698 $605 $685 $603 $574










CON EDISON ANNUAL REPORT 20172023139149


The tax effects of temporary differences, which gave rise to deferred tax assets and liabilities, are as follows:
                  Con Edison                CECONY
(Millions of Dollars)2017
2016
2017
2016
Deferred tax liabilities:    
Property basis differences$6,555$9,446$5,968$8,620
Regulatory assets:    
Unrecognized pension and other postretirement costs6971,1626561,104
Future income tax—
986—
940
Environmental remediation costs219333187287
Deferred storm costs1123—
1
Other regulatory assets269371241321
   Equity investments263363—
—
Total deferred tax liabilities$8,014$12,684$7,052$11,273
Deferred tax assets:    
   Accrued pension and other postretirement costs$264$581$187$467
   Regulatory liabilities:    
   Future income tax698—
660—
   Other regulatory liabilities593822524728
Superfund and other environmental costs203304176265
Asset retirement obligations86997992
Loss carryforwards9559—
—
Tax credits carryforward658498—
—
Valuation allowance(33)(16)—
—
Other112303148312
Total deferred tax assets2,6762,6501,7741,864
Net deferred tax liabilities$5,338$10,034$5,278$9,409
Unamortized investment tax credits1571712841
Net deferred tax liabilities and unamortized investment tax credits$5,495$10,205$5,306$9,450

The TCJA includes significant changes affecting the taxation of regulated public utilities, such as CECONY and O&R, and Con Edison’s other businesses. Substantially all of the provisions of the TCJA are effective for taxable years beginning after December 31, 2017. The TCJA reduces the corporate federal income tax rate from 35 percent to 21 percent. The specific provisions related to regulated public utilities in the TCJA generally allow for the continued deductibility of interest expense, do not allow for full expensing for tax purposes of certain property acquired after September 27, 2017, and continue certain rate normalization requirements for accelerated depreciation benefits. For other businesses, TCJA provides for full expensing of property acquired after September 27, 2017 and limits a deduction for interest expense to 30 percent of adjusted taxable income (which resembles earnings before interest, taxes, depreciation and amortization or “EBITDA”).

In accordance with the accounting rules for income taxes (see “Federal Income Tax” in Note A), the tax effects of changes in tax laws are to be recognized in the period in which the law is enacted and deferred tax assets and liabilities are to be re-measured at the enacted tax rate expected to apply when temporary differences are to be realized or settled. For CECONY and O&R, in accordance with their New York rate plans and the accounting rules for regulated operations the change in deferred taxes was recorded as either an offset to a regulatory asset or a regulatory liability. See “Accounting Policies” in Note A and “Rate Plans” in Note B. For Con Edison’s other businesses, the change in deferred taxes was reflected as a decrease in income tax expense, which increased Con Edison's net income.

Upon enactment of the TCJA, the Companies re-measured their deferred tax assets and liabilities based upon the TCJA’s 21 percent corporate federal income tax rate. As a result, Con Edison, decreased its net deferred tax liabilities by $5,312 million (including $4,781 million for CECONY), recognized $259 million in net income, decreased its regulatory asset for future income tax by $1,250 million (including $1,182 millionfor CECONY), decreased the regulatory asset for revenue taxes by $90 million (including $86 million for CECONY), and accrued a

140CON EDISON ANNUAL REPORT 2017





regulatory liability for future income tax of $3,713 million (including $3,513 million for CECONY). Since the Companies are in a net regulatory liability position with respect to these income tax matters, the Companies netted the regulatory asset for future income tax against the regulatory liability for future income tax. Under the rate normalization requirements continued by the TCJA, $2,684 million of the net regulatory liability (including $2,542 million for CECONY) related to certain accelerated tax depreciation benefits is to be amortized over the remaining lives of the related assets. The remainder of the net regulatory liability is to be refunded (or credited) to customers as determined by the NYSPSC or NJBPU, as applicable. See “Other Regulatory Matters” in Note B. The amount recognized in net income included $269 million for the Clean Energy Businesses, $11 million for Con Edison Transmission and $(21) million for the parent company. The re-measurement had no impact on the Companies’ cash flows for 2017.

SEC Staff Accounting Bulletin 118 (SAB 118), issued when the TCJA was enacted, clarifies accounting for income taxes if information is not yet available or complete and provides for up to a one year period in which to complete the required analyses and accounting. SAB 118 describes three scenarios associated with a company’s status of accounting for income tax reform: (1) a company is complete with its accounting for certain effects of tax reform, (2) a company is able to determine a reasonable estimate for certain effects of tax reform and records that estimate as a provisional amount, or (3) a company is not able to determine a reasonable estimate and therefore continues to apply the accounting rules for income taxes, based on the provisions of the tax laws that were in effect immediately prior to the TCJA being enacted. The Companies have completed the required analysis and accounting for substantially all the effects of the TCJA’s enactment and have made a reasonable estimate as to the other effects, and have reflected the measurement and accounting of the effects in their 2017 consolidated financial statements. The items reflected as provisional amounts include tax depreciation and amortization and other book/tax differences. The Companies have accounted for these items based on its interpretation of the TCJA. Further interpretive guidance on the TCJA from the IRS, U.S. Treasury Department, or the Joint Committee on Taxation may require adjustments to the Companies’ accounting. In accordance with SAB 118, adjustments, if any, will be recorded in 2018. The Companies did not identify any effects of the TCJA for which they were not able to either complete the required analysis or make a reasonable estimate.

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:
  Con EdisonCECONY
(% of Pre-tax income)202320222021202320222021
STATUTORY TAX RATE
Federal21 %21 %21 %21 %21 %21 %
Changes in computed taxes resulting from:
State income taxes, net of federal income taxes5 6 4 5 5 5 
Taxes attributable to noncontrolling interests— 1 3 — — — 
Cost of removal1 1 2 2 1 1 
Other plant-related items— — (1)(1)(1)(1)
Amortization of excess deferred federal income taxes(6)(9)(12)(8)(10)(11)
Renewable energy credits— (2)(2)— — — 
Research and development credits— — (1)— — — 
Other— — — (1)— — 
Impacts from the sale of the Clean Energy Businesses:
Changes in state apportionments, net of federal income taxes(1)6 — — — — 
Deferred unamortized ITC recognized on sale of subsidiary(4)— — — — — 
Effective tax rate16 %24 %14 %18 %16 %15 %

Con Edison’s effective tax rate decreased 8 percent in 2023 primarily due to tax benefits from the recognition of deferred unamortized investment tax credits and the absence of the remeasurement of state deferred income taxes on the announced sale of the Clean Energy Businesses recognized in 2022, offset in part by higher income before income tax expense in 2023 due to the gain on the sale of the Clean Energy Businesses and lower renewable energy tax credits due to the sale.
  Con Edison CECONY
(% of Pre-tax income)2017
 2016
 2015
 2017
 2016
 2015
STATUTORY TAX RATE           
Federal35% 35% 35% 35% 35% 35%
Changes in computed taxes resulting from:           
State income tax4
 4
 5
 4
 4
 5
Cost of removal1
 (1) (5) 1
 (1) (5)
Other plant-related items(1) —
 —
 (1) (1) —
TCJA tax rate reduction(13) —
 —
 —
 —
 —
Renewable energy credits(1) (1) (1) —
 —
 —
Research and development credits—
 (1) —
 —
 (1) —
Other(2) —
 —
 (1) —
 —
Effective tax rate23% 36% 34% 38% 36% 35%


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CON EDISON ANNUAL REPORT 2023

In 2017,
On March 1, 2023, Con Edison hadcompleted the sale of all of the stock of the Clean Energy Businesses, which was accounted for as a federalstock sale for GAAP purposes and a deemed sale of assets and liquidation for tax purposes. Con Edison's pre-tax gain on the sale of the Clean Energy Businesses was $865 million ($767 million, net operating loss of approximately $121 million, due primarily to bonus depreciation. Con Edison expects to carryback approximately $53 milliontax) for the year ended December 31, 2023. The sale included all assets, operations and projects of its 2017 net operating loss to 2007, which will result in recoverythe Clean Energy Businesses with the exception of $19 million of income tax. The remaining 2017 federal net operating loss of $68 million will be carried forward to future yearstax equity interests and will not expire until 2037. General business tax creditsa deferred project, that were generated in 2017 ($176 million) will be carried forwardtreated as distributions to future years.Con Edison. See Note W and Note X.

The tax effects of temporary differences, which gave rise to deferred tax assets and liabilities, are as follows:
                  Con Edison                CECONY
(Millions of Dollars)2023202220232022
Deferred tax liabilities:
Property basis differences$8,542$8,770$8,001$7,475
Regulatory Assets:
   System peak reduction and energy efficiency programs297220291219
   Environmental remediation costs310278287254
   Other regulatory assets632561577501
   Unrecognized pension and other postretirement costs—22—22
Pensions and retiree benefits – asset918917894894
Operating lease right-of-use asset154230153163
   Equity investments—26——
Total deferred tax liabilities$10,853$11,024$10,203$9,528
Deferred tax assets:
   Regulatory liabilities:
      Unrecognized pension and other postretirement costs265447244431
      Future income tax427489394454
      Other regulatory liabilities844860744739
Tax credits carryforward270767——
Loss carryforwards7117—24
Valuation allowance(7)(18)——
Superfund and other environmental costs314280288254
Operating lease liabilities154233153162
Pensions and retiree benefits – liability167162153148
Asset retirement obligations146153146140
Equity investments98———
Other1251410845
Total deferred tax assets2,8103,5042,2302,397
Net deferred tax liabilities$8,043$7,520$7,973$7,131
Unamortized investment tax credits261211113
Net deferred tax liabilities and unamortized investment tax credits$8,069$7,641$7,984$7,144

At December 31, 2023, Con Edison has $658$270 million in general business tax credit carryovers (primarily renewable energy tax credits), which if. If unused, these general business tax credit carryovers will begin to expire in 2032.2038. A deferred tax asset for these tax attribute carryforwards was recorded, and no valuation allowance has been provided, as it is more likely than not that the deferred tax asset will be realized.


CON EDISON ANNUAL REPORT 2017141


For New York State income tax purposes, Con Edison has a net operating loss carryforward available from 2017 of $137 million, primarily as a result of accelerated tax deductions on renewable energy projects. A deferred tax asset has been recognized for this New York State net operating loss that will not expire until 2037. A valuation allowance has not been provided; as it is more likely than not that the deferred tax asset will be realized.

Con Edison recorded a full valuation allowance of $3 million in 2015 against its charitable contribution carryforward from 2011. Due to the expiration of this charitable contribution carryforward in 2016, Con Edison wrote off the deferred tax asset and corresponding valuation allowance. Charitable contributions carryforward of $5 million, $5 million and $4 million for 2015, 2016 and 2017, respectively, that will expire in 2020, 2021 and 2022, respectively, were recorded as a deferred tax asset and no valuation allowance has beenwas provided, as it is more likely than not that the deferred tax asset will be realized. In addition,

At December 31, 2023, Con Edison has a $21 million valuation allowance fordeferred tax asset on its New York City net operating loss carryforward andof $8 million that will begin to expire, if unused, in 2035. Con Edison recorded a $12 millionfull valuation allowance for state net operating losses carryforward has been provided;against this deferred tax asset as it is not more likely than not that the deferred tax assetassets will be realized.


The Protecting AmericansAt December 31, 2022, the Clean Energy Businesses had a deferred tax asset on non New York net operating losses of $43 million, with a valuation allowance of $9 million against the deferred tax assets. During the year ended December 31, 2023, $26 million of deferred tax assets on state net operating losses were utilized as a result of the sale of the Clean Energy Businesses with $17 million of deferred taxes remaining which are not expected to be utilized. Con Edison has written off the $17 million and the related $9 million valuation allowance as these deferred tax assets will not be realized due to the sale of the Clean Energy Businesses.
CON EDISON ANNUAL REPORT 2023151



In April 2023, the IRS released Revenue Procedure 2023-15, which provides a safe harbor method of accounting that taxpayers may use to determine whether certain expenditures to maintain, repair, replace, or improve natural gas transmission and distribution property must be capitalized as improvements by the taxpayer or currently deducted for federal income tax purposes. This revenue procedure also provides procedures for taxpayers to obtain automatic consent to change their method of accounting to the safe harbor method of accounting permitted by this revenue procedure. Con Edison recorded an increase in accumulated plant-related deferred tax liabilities of $228 million ($204 million for CECONY) to reflect the cumulative impact of this change in accounting method for the Utilities.

In May 2023, New York State passed a law that extended the increase in the corporate franchise tax rate from Tax Hikes Act of 2015 extended bonus depreciation for property acquired and placed in service during 2015 through 2019. The bonus depreciation percentage is 506.5 percent to 7.25 percent for property placed in serviceanother three-year period, through tax year 2026, for taxpayers with taxable income greater than $5 million. The law also temporarily extended the business capital tax through tax year 2026, not to exceed an annual maximum tax liability of $5 million per taxpayer, with a corporation paying the higher of its franchise or income tax liability during 2015, 2016 and 2017 and phases down to 40 percent in 2018, andthe same period. New York State also passed a law establishing a permanent rate of 30 percent in 2019.for the metropolitan transportation business tax surcharge. As a result of the extensionsale of bonus depreciation to 2015,the Clean Energy Businesses in 2023, Con Edison has New York State taxable income in February 2016, receivedexcess of $5 million after using its entire New York State Net Operating Loss carryforward, and therefore, the group is subject to the higher 7.25 percent rate (9.425 percent with the surcharge rate) on its taxable income for tax year 2023. As a refundresult of 2015 estimated taxes paidthis legislation, CECONY remeasured its deferred tax assets and liabilities that would reverse before 2027 and recorded state deferred income tax expense (net of federal benefit) and an increase in the amountaccumulated deferred tax liabilities of $160 million ($143$10 million for CECONY). The TCJA does not allow bonus depreciation for property acquired and placed into service by regulated public utilities after September 27, 2017, but provides for full expensing for Con Edison's other businesses.the year ended December 31, 2023.
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:
Con EdisonCECONY
(Millions of Dollars)202320222021202320222021
Balance at January 1,$23$17$14$8$5$3
Additions based on tax positions related to the current year833422
Additions based on tax positions of prior years362111
Reductions for tax positions of prior years(11)(1)(2)(6)—(1)
Settlements(12)(2)————
Balance at December 31,$11$23$17$7$8$5
 Con EdisonCECONY
(Millions of Dollars)20172016
2015
2017
2016
2015
Balance at January 1,$42$34$34$21$2$2
Additions based on tax positions related to the current year12—
12—
Additions based on tax positions of prior years1191119—
Reductions for tax positions of prior years(24)(13)—
(18)(2)—
Reductions from expiration of statute of limitations(2)—
(1)—
—
—
Settlements(6)—
—
—
—
—
Balance at December 31,$12$42$34$5$21$2


In 2017,At December 31, 2023, the estimated uncertain tax positions for Con Edison reachedwas $11 million ($7 million for CECONY). For the year ended December 31, 2023, Con Edison recognized $8 million ($4 million for CECONY) of income tax expense related to current year positions, and recognized a settlementtax benefit of $8 million ($5 million for CECONY) related to positions in prior years. In 2023, Con Edison settled with New York Statethe IRS on the research and development credits related to the Clean Energy Businesses for the 2020-2021 tax years 2006 through 2009 and on two significant items through 2015 andresulting in a reduction in the liability for general business credit carryovers of $12 million, for which an uncertain tax position had previously been recorded. In addition, CECONY reversed $30$6 million in uncertain tax positions. Of this amount, $6 million ($4 million, net of federal taxes)positions related to the same tax years that reduced Con Edison’sits effective tax rate. The amount related to CECONY was $18 million ($12 million, net of federal taxes), all of which reduced CECONY’s unamortized state investment tax credits. Current and prior year additions in 2017 are for tax credits.
As of December 31, 2017, Con Edison and CECONY reasonably expectsexpect to resolve within the next twelve months approximately $8$3 million ($7 million, net of federal taxes) of various federal and state uncertainties due to the expected completion of ongoing tax examinations, and expiration of statute of limitations, of which the entire amount, if recognized, would reduce their effective tax rate. The total amount of unrecognized tax benefits, if recognized, that would reduce Con Edison’s effective tax rate. The amount relatedrate is $11 million ($10 million, net of federal taxes) with $7 million attributable to CECONY is approximately $4 million, of which the entire amount, if recognized, would reduce CECONY’s effective tax rate.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 2017, 20162023, 2022 and

142CON EDISON ANNUAL REPORT 2017



2015, 2021, the Companies recognized an immaterial amount of interest expense and no penalties for uncertain tax

152
CON EDISON ANNUAL REPORT 2023


positions in their consolidated income statements. At December 31, 20172023 and 2016,December 31, 2022, the Companies reflectedrecognized an immaterial amount of accrued interest and no penalties inon their consolidated balance sheets.
At December 31, 2017,
In October 2023, Con Edison reached a settlement with New York State and closed its open examinations for the total amount of unrecognized2010-2014 tax benefits that, if recognized, would reduceyears and paid $6 million in interest and $4 million in income taxes after applying the Companies’ effective tax rate isremaining $12 million ($11 million, net of a special deposit made in 2013.

Con Edison’s federal taxes) with $5 million attributable to CECONY.
Federal tax returnsreturn for 2012 through 2016 remain2022 remains under examination, with tax refunds for tax years 2012 through 2015 waiting for approval by the Joint Committee on Taxation.examination. State incomeand local tax returns remain open for examination in New York State for tax years 20102015 through 2016 and2022, in New Jersey for tax years 20082019 through 2016.2022 and in New York City for tax years 2019 through 2022.

Note M – Revenue Recognition
The following table presents, for the years ended December 31, 2023, 2022 and 2021, 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.
202320222021
(Millions of Dollars)Revenues from contracts with customersOther revenues (a)Total operating revenuesRevenues from contracts with customersOther revenues (a)Total operating revenuesRevenues from contracts with customersOther revenues (a)Total operating revenues
CECONY
Electric$9,946$132$10,078$9,917$(166)$9,751$8,736$70$8,806
Gas2,867(38)2,8292,875492,9242,324542,378
Steam55118569584959351913532
Total CECONY$13,364$112$13,476$13,376$(108)$13,268$11,579$137$11,716
O&R
Electric740197597712773691(10)681
Gas286112973066312265(5)260
Total O&R$1,026$30$1,056$1,077$8$1,085$956$(15)$941
Clean Energy Businesses (c)
Renewables68—68637—637638—638
Energy services7—7317—317234—234
Develop/Transfer Projects7—744 —4445—45
Other—4747—321321—105105
Total Clean Energy Businesses$82$47$129$998$321$1,319$917$105$1,022
Con Edison Transmission4—44— 44—4
Other (b)—(2)(2)—(6)(6)—(7)(7)
Total Con Edison$14,476$187$14,663$15,455$215$15,670$13,456$220$13,676
(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 year ended December 31, 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 included revenue from wholesale services. For the Clean Energy Businesses, this includes revenue from wholesale services. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note W and Note X.
(b) Other includes the parent company, Con Edison's tax equity investments, the deferred project held for sale and consolidated adjustments. See Note X.
(c) On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note W 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.

CON EDISON ANNUAL REPORT 2023153


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 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 recognized revenue for the sale of energy from renewable electric projects as energy was generated and billed to counterparties; accrued revenues at the end of each month for energy generated but not yet billed to counterparties; and recognized revenue as energy was delivered and services were 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 recognized revenue for providing energy-efficiency services to government and commercial customers, and recognized revenue for engineering, procurement and construction services, under the percentage-of-completion method of revenue recognition. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note W and Note X.
Use of the Percentage-of-Completion Method
Sales and profits on each percentage-of-completion contract at the Clean Energy Businesses were 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 have resulted from contract modifications, performance or other reasons, were recognized on a cumulative catch-up basis in the period in which the revisions were made. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note W and Note X.
202320222021
(Millions of Dollars)Unbilled contract revenue (a)Unearned revenue (b)Unbilled contract revenue (a)Unearned revenue (b)Unbilled contract revenue (a)Unearned revenue (b)
Beginning balance as of January 1,$80$3$35$7$11$41
Additions (c)2—324—242—
Subtractions (c)783(d)2794(d)21834(d)
Ending balance as of December 31,$4(e)$—$80$3$35$7
(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, $3 million, $4 million and $34 million were included in the balances as of January 1, 2023, 2022, and 2021, respectively.
(e)Following the sale of the Clean Energy Businesses, Con Edison received substantially all contract revenue, net of certain costs incurred, for a battery storage project located in Imperial County, California. See Note W.

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CON EDISON ANNUAL REPORT 2023




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.

On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note W and Note X. The Clean Energy Businesses’ customer accounts receivable balance generally reflected 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 calculated 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. The Clean Energy Businesses were classified as held for sale as of December 31, 2022.

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 $38 million and $39 million, respectively, for the year ended December 31, 2023.The increases to the allowance for uncollectible accounts for Con Edison and CECONY were $5 million and $10 million for the year ended December 31, 2022.

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, 2023, 2022 and 2021:



CON EDISON ANNUAL REPORT 2023155


For the Year Ended December 31,
Con EdisonCECONY
Accounts receivable - customersOther receivablesAccounts receivable - customersOther receivables
(Millions of Dollars)202320222021202320222021202320222021202320222021
Allowance for credit losses
Beginning Balance at January 1,$322$317$148$10$22$7$314$304$138$7$19$4
Recoveries141714——1121612——1
Write-offs(138)(103)(91)(5)(6)(2)(131)(94)(86)(3)(4)(1)
Reserve adjustments162912468(6)16158882405(8)15
Ending Balance December 31,$360$322$317$13$10$22$353$314$304$9$7$19

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 wasPlans that were 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), and 2023 (2023 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 and the 2013 LTIP continue in effect, however no new awards may be issued under the 2003 LTIP.either plan. The 20132023 LTIP provides for awards for up to fiveten million shares of common stock.

During the years ended December 31, 2023, 2022, and 2021, 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.market). The shares used during the year ended December 31, 20172023 were new shares. The Companies intend to use new shares to fulfill their stock-based compensation obligations for 2018.2024.
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, 2017, 20162023, 2022 and 2015:2021:
  Con Edison CECONY
(Millions of Dollars)2017 2016 2015 2017 2016 2015
Performance-based restricted stock$53 $42 $27 $45 $36 $23
Time-based restricted stock2 2 1 2 2 1
Non-employee director deferred stock compensation2 2 2 2 2 2
Stock purchase plan6 4 4 6 4 3
Total$63 $50 $34 $55 $44 $29
Income tax benefit$25 $20 $14 $22 $18 $12
Stock Options
The Companies last granted stock options in 2006. The stock options generally vested over a three-year period and had a term of 10 years. Options were granted at an exercise price equal to the fair market value of a common share when the option was granted. The Companies generally recognized compensation expense (based on the fair value of stock option awards) over the vesting period. At December 31, 2017 and 2016, there were no outstanding options.

The aggregate intrinsic value of options exercised in 2016 for Con Edison and CECONY was $2 million. Aggregate intrinsic value represents the changes in the fair value of all outstanding options from their grant dates to December 31, 2016. Cash received by Con Edison for payment of the exercise price for Con Edison and CECONY options in 2016 was $3 million. No options were exercised in 2017.
The income tax benefit Con Edison realized from stock options exercised in the years ended December 31, 2016 and 2015 was $1 million.

CON EDISON ANNUAL REPORT 2017143


  Con EdisonCECONY
(Millions of Dollars)202320222021202320222021
Performance-based restricted stock$41$52$23$36$43$19
Time-based restricted stock222222
Non-employee director deferred stock compensation333333
Stock purchase plan777767
Total$53$64$35$48$54$31
Income tax benefit$15$18$10$13$15$9
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 representsrepresent 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

156
CON EDISON ANNUAL REPORT 2023


determinations made in connection with the Companies’ annual incentive plans or, forwith 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:
202320222021
Risk-free interest rate (a)4.06% - 4.64%4.41% - 4.73%0.39% -0.73%
Expected term (b)3 years3 years3 years
Expected share price volatility (c)17.88% - 19.92%19.65% - 21.77%17.25% - 31.42%
 2017 2016 2015
Risk-free interest rate (a)1.76% - 1.89% 0.85% - 1.20% 0.64% - 3.28%
Expected term (b)3 years 3 years 3 years
Expected share price volatility (c)11.01% - 14.70% 17.72% - 18.22% 15.82%
(a)The risk-free rate is based on the U.S. Treasury zero-coupon yield curve.
(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.
(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, 20172023 is as follows:
Con EdisonCECONY
Weighted Average Grant Date Fair Value (a)Weighted Average Grant Date Fair Value (a)
UnitsTSR
Portion (b)		Non-TSR
Portion (c)		UnitsTSR
Portion (b)		Non-TSR
Portion (c)
Non-vested at December 31, 2022865,091$80.02$80.04647,826$79.89$80.16
Granted266,20091.9390.93204,46692.2791.34
Vested(264,568)79.6989.62(205,078)79.4088.75
Forfeited(28,420)86.2382.22(8,741)85.2481.02
Non-vested at December 31, 2023838,303$83.70$80.40638,473$83.94$80.97
 Con EdisonCECONY
  Weighted Average Grant Date Fair Value (a) Weighted Average Grant Date Fair Value (a)
 Units
TSR
Portion (b)
Non-TSR
Portion (c)
Units
TSR
Portion (b)
Non-TSR
Portion (c)
Non-vested at December 31, 20161,087,137$55.45$63.03848,342$54.92$63.00
Granted368,15073.1374.54277,31872.7874.72
Vested(375,684)25.3653.66(293,842)25.3253.66
Forfeited(50,671)76.2972.23(46,226)76.4172.31
Transferred (d)———(1,426)53.0172.52
Non-vested at December 31, 20171,028,932$71.74$70.11784,166$71.06$70.08
(a)The TSR and non-TSR Portions each account for 50 percent of the awards’ value.
(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.
(d)Represents allocation to another Con Edison subsidiary of a portion of the Performance RSUs that had been awarded to a CECONY officer who transferred to the other subsidiary.
(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, 20172023 is $38 million, including $31$34 million for CECONY, and is expected to be recognized over a weighted average period of one year for both Con Edison and CECONY.

144CON EDISON ANNUAL REPORT 2017



Con Edison and CECONY paid cash of $21 million and $19 million in 2023, $10 million and $9 million in 2022, and $8 million and $7 million in 2021, respectively, to settle vested Performance RSUs.
In accordance with the accounting rules for stock compensation, for time-based awards, the Companies are accruingaccrue a liability and recognizingrecognize 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, 20172023 is as follows:
CON EDISON ANNUAL REPORT 2023157


Con Edison CECONY
Units 
Weighted Average Grant Date
Fair Value
 Units 
Weighted Average Grant Date
Fair Value
Non-vested at December 31, 201665,980 $64.04 62,580 $64.03
Con EdisonCon EdisonCECONY
UnitsUnitsWeighted Average Grant Date
Fair Value		UnitsWeighted Average Grant Date
Fair Value
Non-vested at December 31, 2022Non-vested at December 31, 2022180,588$84.69147,415$85.10
Granted23,000 77.66 21,800 77.66Granted198,60092.93166,53993.38
Vested(21,359) 53.77 (20,359) 53.77Vested(19,950)78.00(18,550)78.00
Forfeited(2,751) 71.62 (2,601) 71.93Forfeited(14,037)87.26(6,341)88.47
Non-vested at December 31, 201764,870 $71.93 61,420 $71.93
Non-vested at December 31, 2023Non-vested at December 31, 2023345,201$89.71289,063$90.25
The total expense to be recognized by Con Edison in future periods for unvested time-based awards outstanding at December 31, 20172023 is $12 million, including $12 million for Con Edison and CECONY, was $2 million and is expected to be recognized over a weighted average period of one year.two years. Con Edison and CECONY paid cash of $2 million in 2023 and 2022, and $1 million in 2021, 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, 2017,2023, approximately 28,10029,000 units were issued at a weighted average grant date price of $81.15.$94.78.
Stock Purchase Plan
The Stock Purchase Plan,Plans, which waswere approved by shareholders in 2004 and 2014 provides(collectively, the Plan), provide 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.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 planPlan are reinvested in additional shares unless otherwise directed by the participant.
Participants in the planPlan immediately vest in shares purchased by them under the plan. ThePlan. Prior to September 1, 2020, the fair value of the shares of Con Edison common stock purchased under the planPlan 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 2017, 20162020, the Plan was amended and 2015, 719,125, 720,268as 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 2023, 2022 and 761,7842021, 751,702, 744,932 and 957,866 shares were purchased under the Stock Purchase Plan at a weighted average price of $79.57, $72.67$91.80, $91.59 and $62.75$73.38 per share, respectively.

Note NP – 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. Con Edison Transmission, which had begun investing in electric transmission and gas pipeline and storage assets (see Note U), was added in June 2016 as a separate reportable

CON EDISON ANNUAL REPORT 2017145


segment based on management’s reporting and decision-making, including performance evaluation and resource allocation. For comparison purposes, the previously reported financial information by business segments was reclassified to reflect the current business segment presentation.
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.

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CON EDISON ANNUAL REPORT 2023


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, 2017
(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
expenditures
CECONY         
Electric$7,972$16$925$1,862$7$472$511$29,661$1,905
Gas1,9016185472—
1131528,387909
Steam595758571—
38252,40390
Consolidation adjustments—
(97)—
—
—
—
—
—
—
Total CECONY$10,468
$—
$1,195$2,405$7$623$688$40,451$2,904
O&R         
Electric$642
$—
$51$100$1$24$30$1,949$128
Gas232—
2041—
121282461
Other—
—
—
—
—
—
—
—
—
Total O&R$874
$—
$71$141$1$36$42$2,773$189
Clean Energy Businesses$694
$—
$74$69$33$43$(273)$2,735$447
Con Edison Transmission2—
1(8)8016(11)1,22266
Other (b)(5)—
—
3(5)1113930—
Total Con Edison$12,033
$—
$1,341$2,610$116$729$459$48,111$3,606
As of and for the Year Ended December 31, 2023
(Millions of Dollars)
Operating
revenues
Inter-
segment revenues
Depreciation
and
amortization
Operating
income
Other Income (deductions)
Interest
charges
Income
Tax Expense
Total
assets
Capital
expenditures
CECONY
Electric$10,078$18$1,395$1,568$564$674$217$42,226$2,909
Gas2,829842968212222715916,3431,046
Steam56974100(73)4644(18)3,031128
Consolidation adjustments—(100)———————
Total CECONY$13,476$—$1,924$2,177$732$945$358$61,600$4,083
O&R
Electric$759$—$76$85$37$32$20$2,329$211
Gas297—3041121981,34685
Total O&R$1,056$— $106$126$49$51$28$3,675$296
Clean Energy Businesses (a)$129$—$—$37$1$16$3$—$81
Con Edison Transmission4—1(9)6221441449
Other (b)(2)——865(14)984642—
Total Con Edison$14,663$—$2,031$3,196$830$1,023$487$66,331$4,509
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 Tax Expense
Total
assets
Capital
expenditures
CECONY
Electric$9,751$19$1,315$1,496$259$582$134$39,153$2,522
Gas2,92483676605219814015,3611,128
Steam5937696(21)2142(19)2,931108
Consolidation adjustments—(103)———————
Total CECONY$13,268$—$1,778$2,135$332$822$255$57,445$3,758
O&R
Electric$773$—$71$94$17$29$17$2,247$167
Gas312—274261781,26476
Total O&R$1,085$—$98$136$23$46$25$3,511$243
Clean Energy Businesses (a)$1,319$—$178$368$3$(35)$84$7,224$399
Con Edison Transmission4—1(10)195531465
Other (b)(6)—1(5)(51)14129571—
Total Con Edison$15,670$—$2,056$2,624$326$852$498$69,065$4,465
As of and for the Year Ended December 31, 2016
(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
expenditures
CECONY         
Electric$8,106$17$865$1,847$2$459$495$30,708$1,819
Gas1,5086159357(1)105927,553811
Steam551888258(1)39302,595126
Consolidation adjustments—
(111)—
—
—
—
—
—
—
Total CECONY$10,165
$—
$1,106$2,262
$—
$603$617$40,856$2,756
O&R    
    
Electric$637
$—
$49$95$1$24$30$1,949$114
Gas184—
1835—
121080952
Other—
—
—
—
—
—
—
—
—
Total O&R$821
$—
$67$130$1$36$40$2,758$166
Clean Energy Businesses$1,091$7$42$183$21$34$53$2,551$1,235
Con Edison Transmission—
—
—
(3)436—
1,1501,078
Other (b)(2)(7)13(1)174940—
Total Con Edison$12,075
$—
$1,216$2,575$64$696$714$48,255$5,235




146CON EDISON ANNUAL REPORT 20172023159





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
Tax Expense
Total
assets		Capital
expenditures
CECONY
Electric$8,806$18$1,286$1,802$(84)$542$146$36,260$2,189
Gas2,3788326646(16)17910913,7481,126
Steam532749312(8)41(9)2,647103
Consolidation adjustments—(100)———————
Total CECONY$11,716$—$1,705$2,460$(108)$762$246$52,655$3,418
O&R
Electric$681$—$69$100$(8)$27$14$2,123$147
Gas260—2650(4)1571,16970
Total O&R$941$—$95$150$(12)$42$21$3,292$217
Clean Energy Businesses (a)$1,022$—$231$236$(10)$68$44$6,554$298
Con Edison Transmission4—1(16)(407)9(114)24931
Other (b)(7)——(4)(1)24(7)366—
Total Con Edison$13,676$—$2,032$2,826$(538)$905$190$63,116$3,964
(a)The Clean Energy Businesses were classified as held for sale as of December 31, 2022. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. As a result of this sale, the Clean Energy Businesses are no longer a principal segment. See Note W and Note X.
As of and for the Year Ended December 31, 2015
(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
expenditures
CECONY         
Electric$8,172$18$820$1,798$(2)$447$447$30,603$1,658
Gas1,5276142356(2)961006,974671
Steam629867893(1)41412,653106
Consolidation adjustments—
(110)—
—
—
—
—
—
—
Total CECONY$10,328
$—
$1,040$2,247$(5)$584$588$40,230$2,435
O&R    
    
Electric$663
$—
$50$103$(2)$23$31$2,140$114
Gas182—
1818(2)12257946
Other—
—
—
—
—
—
—
—
—
Total O&R$845
$—
$68$121$(4)$35$33$2,719$160
Clean Energy Businesses$1,383$(2)$22$58$35$11$22$1,680$823
Con Edison Transmission—
—
—
—
—
—
—
3—
Other (b)(2)2—
1(2)2311,010—
Total Con Edison$12,554
$—
$1,130$2,427$24$653$644$45,642$3,418
(b)Other includes the parent company, Con Edison’s tax equity investments, the deferred project held for sale and consolidation adjustments.
(a)For Con Edison, the income tax expense/(benefit) on non-operating income was $13 million, $(16) million and $(40) million in 2017, 2016 and 2015, respectively. For CECONY, the income tax expense/(benefit) on non-operating income was $(3) million, $(14) million and $(14) million in 2017, 2016 and 2015, respectively. At December 31, 2017, Con Edison re-measured its deferred tax assets and liabilities based upon the 21 percent corporate income tax rate under the TCJA. As a result, Con Edison, decreased its federal income tax expense by $259 million ($269 million, $11 million and $(21) million, respectively, for Clean Energy Businesses, Con Edison Transmission and the parent company). See “Other Regulatory Matters” in Note B and Note L to the financial statements in Item 8.
(b)Parent company and consolidation adjustments. Other does not represent a business segment.

Note OQ – Derivative Instruments and Hedging Activities
Commodity Derivatives
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 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 depends 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. Derivatives are recognized on the consolidated balance sheet at fair value (see Note P)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.

On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note W and Note X.

160
CON EDISON ANNUAL REPORT 20171472023




The fair values of the Companies’ commodity derivatives, including the offsetting of assets and liabilities, on the consolidated balance sheet at December 31, 20172023 and 20162022 were:
(Millions of Dollars)20232022
Balance Sheet Location
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)
Con Edison
Fair value of derivative assets
Current$83$(38)$45(b)$378$(332)$46(b)
Noncurrent77 (29)48193 (108)85 
Total fair value of derivative assets held and used$160$(67)$93$571$(440)$131
Current - assets held for sale (d)———93 (8)85 (c)
Noncurrent - assets held for sale (d)———831194(c)
Total fair value of derivative assets$160$(67)$93$747$(437)$310
Fair value of derivative liabilities
Current$(230)$52$(178)(b)$(198)$166$(32)(b)
Noncurrent(154)33(121)(49)36(13)
Total fair value of derivative liabilities held and used$(384)$85$(299)$(247)$202$(45)
Current - liabilities held for sale (d)———(31)6 (25)
Noncurrent - liabilities held for sale (d)———(3)(8)(11)
Total fair value of derivative liabilities$(384)$85$(299)$(281)$200$(81)
Net fair value derivative assets/(liabilities)$(224)$18$(206)$466$(237)$229
CECONY
Fair value of derivative assets
Current$78$(35)$43(b)$350$(312)$38(b)
Noncurrent76(27)49176(96)80
Total fair value of derivative assets$154$(62)$92$526$(408)$118
Fair value of derivative liabilities
Current$(217)$48$(169)(b)$(189)$160$(29)
Noncurrent(139)31(108)(43)34(9)
Total fair value of derivative liabilities$(356)$79$(277)$(232)$194$(38)
Net fair value derivative assets/(liabilities)$(202)$17 $(185)$294$(214)$80
(Millions of Dollars)2017 2016 
Balance Sheet Location
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) 
Con Edison        
Fair value of derivative assets        
Current$83$(51)$32(b)$81$(64)$17(b)
Noncurrent10(4)6 49(43)6 
Total fair value of derivative assets$93$(55)$38 $130$(107)$23 
Fair value of derivative liabilities        
Current$(67)$50$(17) $(138)$61$(77) 
Noncurrent(43)5(38) (91)52(39)(c)
Total fair value of derivative liabilities$(110)$55$(55) $(229)$113$(116) 
Net fair value derivative assets/(liabilities)$(17)
$—
$(17)(b)$(99)$6$(93)(b)(c)
CECONY        
Fair value of derivative assets        
Current$39$(15)$24(b)$52$(45)$7(b)
Noncurrent9(4)5 41(35)6 
Total fair value of derivative assets$48$(19)$29 $93$(80)$13 
Fair value of derivative liabilities

      
Current$(26)$14$(12) $(111)$45$(66) 
Noncurrent(36)4(32) (77)44(33) 
Total fair value of derivative liabilities$(62)$18$(44) $(188)$89$(99) 
Net fair value derivative assets/(liabilities)$(14)$(1)$(15)(b)$(95)$9$(86)(b)
(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.
(b)At December 31, 2023, margin deposits for Con Edison and CECONY of $7 million and $6 million, respectively were classified as derivative assets and $(15) million and $(10) million, respectively were classified as derivative liabilities on the consolidated balance sheet, but not included in the table. 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. 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.
(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.
(b)At December 31, 2017 and 2016, margin deposits for Con Edison ($12 million and $7 million, respectively) and CECONY ($11 million and $7 million, 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.
(c)Does not include ($1) million for interest rate swap (see below).

(c)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 ranged from 2025-2041.
(d)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. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note W 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.
CON EDISON ANNUAL REPORT 2023161



The Clean Energy Businesses recordrecorded realized and unrealized gains and losses on their derivative contracts in purchased power, gas purchased for resale and non-utility revenue in the reporting period in which they occur.occurred. The Clean Energy Businesses recorded 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.

148CON EDISON ANNUAL REPORT 2017



prices and interest rates. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note W and Note X.
The following table presents the realized and unrealized gains or losses on commodity derivatives that have been deferred or recognized in earnings for the years ended December 31, 20172023 and 2016:2022:
              Con Edison              CECONY
(Millions of Dollars)Balance Sheet Location2023202220232022
Pre-tax gains/(losses) deferred in accordance with accounting rules for regulated operations:
CurrentRegulatory liabilities$(236)$168$(216)$155
NoncurrentRegulatory liabilities(96)83(81)75
Total deferred gains/(losses)$(332)$251$(297)$230
CurrentRegulatory assets$(85)$(43)$(76)$(44)
CurrentRecoverable energy costs(563)408(533)372 
NoncurrentRegulatory assets(132)19(122)19
Total deferred or recognized gains/(losses)$(780)$384$(731)$347
Net deferred or recognized gains/(losses) (a)$(1,112)$635$(1,028)$577
Income Statement Location
Pre-tax gain/(loss) recognized in income
Gas purchased for resale$4$5$—$—
Non-utility revenue17 —— — 
Other operations and maintenance expense—4—4
Other interest expense (b)5159——
Total pre-tax gain/(loss) recognized in income$26$168$—$4
                Con Edison               CECONY 
(Millions of Dollars)Balance Sheet Location2017
 2016 2017
 2016
 
Pre-tax gains/(losses) deferred in accordance with accounting rules for regulated operations:     
CurrentDeferred derivative gains$3 $23 $4 $18 
NoncurrentDeferred derivative gains—
 1 —
 2 
Total deferred gains/(losses)$3 $24 $4 $20 
CurrentDeferred derivative losses$51 $22 $49 $18 
CurrentRecoverable energy costs(154) (212) (144) (194) 
NoncurrentDeferred derivative losses4 2 5 4 
Total deferred gains/(losses)$(99) $(188) $(90) $(172) 
Net deferred gains/(losses)$(96) $(164) $(86) $(152) 
 Income Statement Location        
Pre-tax gain/(loss) recognized in income        
 Purchased power expense
$—

$(101)(b)
$—
 
$—
 
 Gas purchased for resale3 (112) —
 —
 
 Non-utility revenue5(a)9(b)—
 —
 
 Other operations and maintenance expense—

1(c)—

1(c)
Total pre-tax gain/(loss) recognized in income$8 $(203) 
$—
 $1 

(a)    Unrealized net deferred gains on electric and gas derivatives for the Utilities decreased as a result of lower electric and gas commodity prices during the year ended December 31, 2023. Upon settlement, short-term deferred derivative losses generally increase the recoverable costs of electric and gas purchases.
(a)For the year ended December 31, 2017, Con Edison recorded an immaterial unrealized pre-tax gain in non-utility operating revenue.
(b)
For the year ended December 31, 2016, Con Edison recorded unrealized pre-tax gains and losses in non-utility operating revenue ($5 million loss) and purchased power expense ($11 million gain).
(b)    Comprised of amounts related to interest rate swaps of the Clean Energy Businesses. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note W and Note X.
(c)
For the year ended December 31, 2016, Con Edison and CECONY recorded an unrealized gain in other operations and maintenance expense ($1 million).
The following table presents the hedged volume of Con Edison’s and CECONY’s commodity derivative transactions at December 31, 2017:2023:
Electric Energy 
(MWh) (a)(b)		Capacity (MW) (a)Natural Gas (Dt) (a)(b)Refined Fuels (gallons)
Con Edison34,892,53544,400325,690,0003,780,000
CECONY32,315,22534,500306,700,0003,780,000
 Electric Energy (MWh) (a)(b)Capacity (MW) (a)Natural Gas (Dt) (a)(b)Refined Fuels (gallons)
Con Edison31,741,65210,275177,433,1443,780,000
CECONY29,696,6005,100169,790,0003,780,000
(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.
(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.
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.Utilities. 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.

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CON EDISON ANNUAL REPORT 2023


At December 31, 2017,2023, Con Edison and CECONY had $103$92 million and $28$90 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 $39$83 million with non-investment grade/non-rated counterparties, $2 million with investment-grade counterparties, $29 million with independent system operators, $22and $7 million with commodity exchange brokers, and $13 million with non-investment grade/non-rated counterparties.brokers. CECONY’s net credit exposure consisted of $17$83 million with non-investment grade/non-rated counterparties, $1 million with investment-grade counterparties, and $11$6 million with commodity exchange brokers.
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

CON EDISON ANNUAL REPORT 2017149


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, 2017:2023:
(Millions of Dollars)Con Edison (a)CECONY (a)
Aggregate fair value – net liabilities$302$280
Collateral posted280280
Additional collateral (b) (downgrade one level from current ratings)4124
Additional collateral (b)(c) (downgrade to below investment grade from current ratings)147117
(Millions of Dollars)Con Edison (a)
CECONY (a)
Aggregate fair value – net liabilities$39$31
Collateral posted6863
Additional collateral (b) (downgrade one level from current ratings)—
—
Additional collateral (b)(c) (downgrade to below investment grade from current ratings)2922
(a)Non-derivative transactions for the purchase and sale of electricity and gas and qualifying derivative instruments, that 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 are no longer extended unsecured credit for such purchases, the Companies would be required to post additional collateral of $3 million at December 31, 2023. 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.
(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 $8 million at December 31, 2017. 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 liabilities
(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, 2017, if Con Edison had been downgraded to below investment grade, it would have been required to post additional collateral for such derivative instruments of $18 million.

Interest Rate Swap
In December 2016, the Clean Energy Businesses acquired Coram Wind which holds an interest rate swap that terminates in June 2024, pursuant to which it pays a fixed-rate of 2.0855 percent and receives a LIBOR-based variable rate. The fair value amounts represent unrealized losses, net of this interest rate swap was immaterial as ofany 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, 2017 and a liability2023, if Con Edison had been downgraded to below investment grade, it would have been required to post additional collateral for such derivative instruments of $1 million as of December 31, 2016 on Con Edison��s consolidated balance sheet.$16 million.

Note PR – 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, whichthat 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, whichthat 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
CON EDISON ANNUAL REPORT 2023163


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

150CON EDISON ANNUAL REPORT 2017



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, 20172023 and 20162022 are summarized below.
20232022
(Millions of Dollars)Level 1Level 2Level 3
Netting
Adjustment (e)
TotalLevel 1Level 2Level 3
Netting
Adjustment (e)
Total
Con Edison
Derivative assets:
Commodity (a)(b)(c)$6$146$2$(54)$100$84$476$2$(420)$142
Commodity held for sale (g)—————63431273
Interest rate swaps (a)(b)(c)(f) (g)——————106——106
Other (a)(b)(d)505118——623437116——553
Total assets$511$264$2$(54)$723$527$732$33$(418)$874
Derivative liabilities:
Commodity (a)(b)(c)$22$347$10$(65)$314$18$204$16$(184)$54
Commodity held for sale (g)—————8 242236
Total liabilities$22$347$10$(65)$314$26$228$18$(182)$90
CECONY
Derivative assets:
Commodity (a)(b)(c)$6$143$1$(52)$98$83$434$2$(388)$131
Other (a)(b)(d)488113——601422110——532
Total assets$494$256$1$(52)$699$505$544$2$(388)$663
Derivative liabilities:
Commodity (a)(b)(c)$20$326$6$(65)$287$18$198$8$(180)$44
 20172016
(Millions of Dollars)Level 1Level 2Level 3
Netting
Adjustment (e)
TotalLevel 1Level 2Level 3
Netting
Adjustment (e)
Total
Con Edison          
Derivative assets:          
Commodity (a)(b)(c)$5$77$7$(39)$50$14$33$7$(24)$30
Other (a)(b)(d)283120—
—
403222111—
—
333
Total assets$288$197$7$(39)$453$236$144$7$(24)$363
Derivative liabilities:          
Commodity (a)(b)(c)$8$93$6$(52)$55$4$144$6$(38)$116
Interest Rate Swap (a)(b)(c)(f)—
—
—
—
—
—
1—
—
1
Total liabilities$8$93$6$(52)$55$4$145$6$(38)$117
CECONY          
Derivative assets:          
Commodity (a)(b)(c)$3$40$4$(7)$40$10$19$1$(10)$20
Other (a)(b)(d)260114—
—
374200106—
—
306
Total assets$263$154$4$(7)$414$210$125$1$(10)$326
Derivative liabilities:          
Commodity (a)(b)(c)$5$57
$—
$(18)$44$1$124
$—
$(26)$99
(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 $9 million and $6 million of derivative liabilities, respectively, transferred from level 3 to level 2 during the year ended December 31, 2023 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, 2023 to less than three years as of December 31, 2023. Con Edison and CECONY had an immaterial amount of commodity 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.
(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, 2023 and 2022, the Companies determined that nonperformance risk would have no material impact on their financial position or results of operations.
(a)

164
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 $11 million and $10 million, respectively, of commodity derivative liabilities transferred from level 3 to level 2 during the year ended December 31, 2017 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, 2017 to less than three years as of December 31, 2017. There were no transfers between levels 1, 2 and 3 for the year ended December 31, 2016.CON EDISON ANNUAL REPORT 2023
(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, 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, 2017 and 2016, 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 O.


(d)Other assets: Level 1 assets are comprised primarily of mutual/commingled funds, and Level 2 assets are comprised primarily of the cash value of life insurance contracts.
(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)On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note W 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. Under the Companies’ policies and procedures, multiple independent sources of information are obtained for forward price curves used to value commodity derivatives. Fair value and changes in fair value of commodity derivatives are reported on a monthly basis to the Companies’ risk committees, comprised of officers and employees of the Companies that

CON EDISON ANNUAL REPORT 2017151


oversee energy hedging at the Utilities and the Clean Energy Businesses.Utilities. The risk management group reports to the Companies’ Vice President and Treasurer.
Fair Value of Level 3 at December 31, 20172023
(Millions of Dollars)Valuation TechniquesUnobservable InputsRange
Con Edison — Commodity
Electricity$(1)(8)Discounted Cash FlowForward energy prices (a)$15.52-$115.00 per MWh
Discounted Cash FlowForward capacity prices (a)$1.50-$12.501.90 - $11.75 per kW-month
Transmission Congestion Contracts$2immaterialDiscounted Cash FlowInter-zonal forward price curves adjusted for historical zonal losses (b)$0.19-$3.57(0.33) - $2.20 per MWh
Total Con Edison —- Commodity$1(8)
CECONY — Commodity
Electricity$3(5)Discounted Cash FlowForward capacity prices (a)$2.35-$12.501.90 - $11.75 per kW-month
Transmission Congestion Contracts$1immaterialDiscounted Cash FlowInter-zonal forward price curves adjusted for historical zonal losses (b)$0.51-$3.00(0.33) - $2.20 per MWh
Total CECONY — Commodity$4(5)
(a)Generally, increases/(decreases) in this input in isolation would result in a higher/(lower) fair value measurement.
(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.
(b)Generally, increases/(decreases) in this input in isolation would result in a lower/(higher) fair value measurement.
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, 20172023 and 20162022 and classified as Level 3 in the fair value hierarchy:
                 Con Edison                 CECONY
(Millions of Dollars)2023202220232022
Beginning balance as of January 1,$15$(11)$(6)$(7)
Included in earnings(4)(11)(2)(5)
Included in regulatory assets and liabilities33113110
Settlements41125
Changes in level 3 assets and liabilities held for sale (a)—25——
Decrease due to the sale of the Clean Energy Businesses (a)(29)———
Transfer out of level 3(27)(10)(30)(9)
Ending balance as of December 31,$(8)$15$(5)$(6)
                  Con Edison                 CECONY
(Millions of Dollars)2017
2016
2017
2016
Beginning balance as of January 1,$1$6$1$8
Included in earnings8(7)2(1)
Included in regulatory assets and liabilities(13)(6)(7)(6)
Purchases2412
Sales—
4—
—
Settlements(8)—
(3)(2)
Transfer out of level 311—
10—
Ending balance as of December 31,$1$1$4$1
(a)On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note W 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 ($217 million gainloss and immaterial) and purchased power costs (immaterial and $6$26 million loss)gain) on the consolidated income statement for the years ended December 31, 20172023 and 2016,2022, respectively. The change in fair value relating to Level 3 commodity derivative assets and liabilities held at December 31, 2017 and 2016 is included in non-utility revenues ($2 million gain and immaterial) and purchased power costs (immaterial and $1 million loss) on the consolidated income statement for the years ended December 31, 2017 and 2016, respectively.

On March 1, 2023, Con Edison
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completed the sale of all of the stock of the Clean Energy Businesses and amounts for 2023 are shown through the date of sale. See Note W and Note X.
Note QS – 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 April 2017, CECONY's long-term electricity purchase agreement with Cogen Technologies Linden Venture, LP, another potential VIE, expired. In 2017, requests were2023, a request was made of these counterpartiesthis 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,agreements; the payments pursuant to whichfor this contract constitute CECONY's maximum exposure to loss with respect to the potential VIEs.VIE.


Con Edison DevelopmentClean Energy Businesses
Con Edison has determined that the use of Hypothetical Liquidation at Book Value (HLBV) accounting is reasonable and appropriate to attribute income and loss to the tax equity investors for various projects owned by the Clean Energy Businesses. See "Use of Hypothetical Liquidation at Book Value" in Note A. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. In connection with the sale, Con Edison retained a variabletax equity interest in OCItwo renewable electric projects located in Virginia, and in the Crane Solar San Antonio 4 LLC (TexasProject (collectively, the "Retained Projects"). Included in the sale were Con Edison's interests in CED Nevada Virginia and the Tax Equity Projects, defined below (collectively, the "Sold Projects"). The HLBV method of accounting resulted in an immaterial amount of income/(loss) for Con Edison and the tax equity investor for the Sold Projects for the year ended December 31, 2023; information for the year ended December 31, 2022 is presented below. See Note W and X.

Retained Projects
Con Edison retained a tax equity interest valued at $20 million in two renewable electric projects located in Virginia that is accounted for as an equity method investment and represents the maximum exposure to loss for this investment. See Note W. The earnings of the projects, once in service, are determined using the HLBV method of accounting and resulted in losses of $14 million ($10 million, after tax) for the year ended December 31, 2023.

Con Edison also retained its $11 million equity interest in the Crane solar project that was valued at $0 as of December 31, 2023 and is accounted for as an equity method investment. See Note W. The earnings of the project are determined using the HLBV method of accounting and were not material for the years ended December 31, 2023 and 2022.

Con Edison is not the primary beneficiary of any Retained Projects since the power to direct the activities that most significantly impact the economics of the renewable electric projects is not held by Con Edison.

Sold Projects
In 2018, the Clean Energy Businesses completed its acquisition of Sempra Solar 4),Holdings, LLC. Included in the acquisition were certain operating projects (Tax Equity Projects) with a noncontrolling tax equity investor to which a percentage of earnings, tax attributes and cash flows are allocated. Electricity generated by the Tax Equity Projects is sold to utilities and municipalities pursuant to long-term power purchase agreements.


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In 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 are allocated.

The Tax Equity Projects and CED Nevada Virginia were consolidated entityentities in which Con Edison Development has an 80had less than a 100 percent membership interest.interest at December 31, 2022 and in which Con Edison ishas no interest in subsequent to the sale of the Clean Energy Businesses on March 1, 2023. Con Edison was the primary beneficiary since the power to direct the activities that most significantly impact the economics of Texas Solar 4 isthe Tax Equity Projects and CED Nevada Virginia was held by Con Edison Development. Texas Solar 4 owns a project company that developed a 40 MW (AC) solar electric production projectEdison.

The HLBV method of accounting resulted in Texas. Electricity generated by the project is sold to the City of San Antonio pursuant to a long-term power purchase agreement. At December 31, 2017 and 2016,income/(loss) for Con Edison’s consolidated balance sheet includes $26 million and $54 million in net assets (as detailed in the table below) respectivelyEdison and the noncontrolling interest of the third party of $7 million related to Texas Solar 4. Earningstax equity investors for the years ended December 31, 20172022 and 2016 were immaterial.
(Millions of Dollars)20172016
Restricted cash$5$8
Non-utility property, less accumulated depreciation of $12 and $9, respectively101104
Other assets843
Total assets (a)$114$155
Long-term debt due within one year$2$3
Other liabilities2838
Long-term debt5860
Total liabilities (b)$88$101
(a)The assets of Texas Solar 4 represent assets of a consolidated VIE that can be used only to settle obligations of2021 as shown in the consolidated VIE.
(b)The liabilities of Texas Solar 4 represent liabilities of a consolidated VIE for which creditors do not have recourse to the general credit of the primary beneficiary.
The following table summarizes the VIEs in whichbelow. On March 1, 2023, Con Edison Development has entered intocompleted the sale of all of the stock of the Clean Energy Businesses. See Note W and Note X.


20222021
(Millions of Dollars)CED Nevada VirginiaTax Equity ProjectsCED Nevada VirginiaTax Equity Projects
Tax equity investor$(49)$(11)$(158)$6
   After tax(37)(8)(119)4
Con Edison415115530
   After tax313811724

At December 31, 2022, Con Edison’s consolidated balance sheet included the following amounts associated with its consolidated VIEs:
Tax Equity Projects
     Great Valley Solar
      (c)(d)		Copper Mountain - Mesquite Solar
             (c)(e)		CED Nevada Virginia (c)(f)
(Millions of Dollars)202220222022
Assets held for sale (a)$305 $580 $686 
Total assets (a)$305$580$686
Liabilities held for sale (b)$20 $81 $331 
Total liabilities (b)$20$81$331
(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, 2017:2022. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note W and Note X. For the disposal of the noncontrolling interest, see Con Edison's Consolidated Statement of Equity.

(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. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note W and Note X. For the disposal of the noncontrolling interest, see Con Edison's Consolidated Statement of Equity.
(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 at December 31, 2022.
(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 at December 31, 2022.
(f)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 at December 31, 2022.
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Project Name (a)Generating Capacity (b) (MW AC)Power Purchase Agreement Term in YearsYear of Initial InvestmentLocation
Maximum
Exposure to Loss
(Millions of Dollars) (c)
Copper Mountain Solar 3128202014Nevada$175
Mesquite Solar 183202013Arizona103
Copper Mountain Solar 275252013Nevada82
California Solar55252012California63
Broken Bow II38252014Nebraska44
Texas Solar 432252014Texas19
(a)With the exception of Texas Solar 4, Con Edison’s ownership interest is 50 percent and these projects are accounted for using the equity method of accounting. With the exception of Texas Solar 4, Con Edison is not the primary beneficiary since the power to direct the activities that most significantly impact the economics of the entities are shared equally between Con Edison Development and third parties. Con Edison’s ownership interest in Texas Solar 4 is 80 percent and is consolidated in the financial statements. Con Edison is the primary beneficiary since the power to direct the activities that most significantly impact the economics of Texas Solar 4 is held by Con Edison Development.
(b)Represents Con Edison Development’s ownership interest in the project.
(c)For investments accounted for under the equity method, maximum exposure is equal to the carrying value of the investment on the consolidated balance sheet. For consolidated investments, such as Texas Solar 4, maximum exposure is equal to the net assets of the project on the consolidated balance sheet less any applicable noncontrolling interest ($7 million for Texas Solar 4). Con Edison did not provide any financial or other support during the year that was not previously contractually required.
Note RT – 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 arewere located on property that iswas 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. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note W 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, 2023 and 2022, and changes to the obligation for the years then ended:
Con EdisonCECONY
(Millions of Dollars)2023202220232022
Beginning Balance as of January 1,$500$577$499$504
ARO held for sale (a)—(77)——
Changes in estimated cash flows76447543
Accretion expense17181714
Liabilities settled(71)(62)(71)(62)
Ending Balance as of December 31, (b)$522$500$520$499
(a)The asset retirement obligations of the Clean Energy Businesses (inclusive of those of Broken Bow II) in 2022, and of Broken Bow II in 2023 are reflected in current liabilities held for sale on Con Edison's consolidated balance sheets as of December 31, 2022 and 2023, respectively. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. For 2023, $3 million of asset retirement obligations related to Broken Bow II are not shown in the table above, as they are already excluded from the beginning balance as of January 1, 2023 for Con Edison. See Note A and Note X.
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(b)At December 31, 2017, the liabilities for asset retirement obligations of2023, Con Edison and CECONY were $314recorded reductions of $77 million to the regulatory liability associated with cost of removal to reflect depreciation and $287 million, respectively.interest expense. At December 31, 2016, the liabilities for asset retirement obligations of2022, Con Edison and CECONY were $246 million and $227 million, respectively. The change in liabilities at December 31, 2017 was due to changes in estimated cash flows of $98 million and $91 million for Con Edison and CECONY, respectively, and accretion expense of $10 million and $9 million for Con Edison and CECONY, respectively. The changes were offset by liabilities settled of $40 million for both Con Edison and CECONY. Con Edison and CECONY also recorded reductions of $36$78 million and $37$77 million, during the years ended December 31, 2017 and 2016, respectively, to the regulatory liability associated with cost of removal to reflect depreciation and interest expense.
Note SU – Related Party Transactions
CECONY providesThe 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 receivesreceive 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 ($19,146 million and $1,062 million, respectively), at December 31, 2023, 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, 2017, 20162023, 2022 and 20152021 were as follows:
CECONY (a)
(Millions of Dollars)202320222021
Cost of services provided$146$135$137
Cost of services received827568
 CECONY
(Millions of Dollars)201720162015
Cost of services provided$111$108$99
Cost of services received646460
(a) On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note W and Note X.
In addition, CECONY and O&R have joint gas supply arrangements in connection with which CECONY sold to O&R $66$82 million, $47$144 million and $54$90 million of natural gas for the years ended December 31, 2017, 20162023, 2022 and 2015,2021, respectively. These amounts are net of the effect of related hedging transactions.

At December 31, 2023 and 2022, CECONY's net receivable (payable) to Con Edison for income taxes were $110 million and $(89) million, respectively.

The Utilities perform work and incur expenses on behalf of NYNew York Transco, a company in which CET ElectricCon Edison Transmission has a 45.7 percent equity interest.interest in New York Transco's New York Energy Solution project and a 41.7 percent interest in New York Transco's share of the Propel NY Energy project that is jointly owned with the New York Power Authority. The Utilities bill NYNew York Transco for such work and expenses in accordance with established policies. For the yearyears ended December 31, 20172023 and 2016,2022, the amounts billed by the Utilities to NYNew York Transco were immaterial. In May 2016, CECONY transferred certain electric transmission projects to NY Transco. See Note U.$7.3 million and $8.0 million, respectively.
CECONY has storage and wheeling service contracts with Stagecoach Gas Services LLC (Stagecoach), a joint venture formed by a subsidiary of CET Gas 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. From the inception of the joint venture in June 2016 through December 31, 2017, the amount of storage and wheeling services received by CECONY from Stagecoach was $49 million. In addition, the Clean Energy Businesses entered into two electricity sales agreements with Stagecoach under which the amounts received in 2017 and 2016 were immaterial.
CECONY has a 20-year transportation contract with Mountain Valley Pipeline, LLC (MVP) for 250,000 dekatherms per day of capacity. CET Gas holds a 12.5 percent equityCon Edison Transmission has an interest in MVP. See "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 contract with MVP contract. Forunless CECONY can demonstrate that the year ended December 31, 2017,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. CECONY has not incurred no costs under the contract.
CECONY had a financial electric capacity contract with Con Edison Energy for the period May 2016 through April 2017. For the years ended December 31, 2017 and 2016, Con Edison Energy's realized gains under this contract were $3 million and immaterial, respectively.
FERC has authorized CECONY through 2019 to lend funds to O&R from time to time, for periodsa period of not more than 12 months, in amountsan amount not to exceed $250 million, outstanding at any time, at prevailing market rates. ThereAt December 31, 2023 and 2022 there were no outstanding loans to O&R at&R.
The Clean Energy Businesses had financial electric capacity contracts with CECONY and O&R. For the year ended December 31, 20172022, the Clean Energy Businesses realized a $5 million gain under these contracts. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. As a result of the sale, the Clean Energy Businesses are no longer recognized as a related party. See Note W and 2016.Note X.
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The Consolidated Edison Foundation, Inc. (the Foundation), established in December 2023, is a non-consolidated not-for-profit corporation funded by Con Edison that plans to make contributions to selected charitable organizations. In December 2023, Con Edison made an unconditional promise to give $12 million to the Foundation. For the year ended December 31, 2023, Con Edison accrued such amount as an expense in “Other Income and Deductions” within its consolidated income statement.
Note TV – New Financial Accounting Standards
In January 2018, the Companies adopted Accounting Standards Update (ASU) No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” including the amendments thereto, (the New Standard) using the modified retrospective approach the New Standard permitted. The New Standard supersedes the revenue recognition requirements within Accounting Standards Codification Topic 605, “Revenue Recognition,” and most industry-

CON EDISON ANNUAL REPORT 2017155


specific guidance (the Superseded Standard). The purpose of the New Standard is to create a consistent framework for revenue recognition. The New Standard clarifies how to measure and recognize revenue arising from customer contracts to depict the transfer of goods or services in an amount that reflects the consideration the entity expects to receive. The New Standard also clarifies key areas including principal/agent considerations, performance obligations, licensing, sales taxes, noncash consideration, and contracts.

The majority of Con Edison’s’ revenues and substantially all of CECONY’s revenues are derived from the provision of electric, gas, and steam service to customers pursuant to the terms of tariffs approved by the NYSPSC or NJBPU. For such service, the Companies expect that the revenue from contracts with customers for a period that will be recorded under the New Standard will be equivalent to the revenue for the period that would have been recorded under the Superseded Standard. Most of Con Edison’s other revenues are derived from the Clean Energy Businesses’ sale of energy-related products and services, operation of renewable and energy infrastructure projects, and sale of renewable energy credits. For such businesses, Con Edison expects that the revenue from contracts with customers for a period that will be recorded under the New Standard will not be materially different from the revenue for the period that would have been recorded under the Superseded Standard.

Under the modified retrospective method of adoption, prior year reported results are not restated and a cumulative-effect adjustment, if applicable, is recorded to retained earnings at January 1, 2018. As of January 1, 2018, the cumulative-effect adjustment was not material to the Companies. The Companies also plan to use certain practical expedients including applying this guidance to open contracts at the date of adoption and recognizing revenues for certain contracts under the invoice practical expedient. Such expedients allow revenue recognition to be consistent with invoiced amounts (including estimated billings) provided certain criteria are met, including consideration of whether the invoiced amounts reasonably represent the value provided to customers.

The adoption of the New Standard will not have a material impact on the Companies’ financial statements, results of operations, and liquidity, including the presentation of revenues in their consolidated income statements. The adoption of the New Standard will not require a change in the Companies’ internal control over financial reporting that is reasonably likely to materially affect their internal control over financial reporting.

In February 2016, the FASB issued amendments on financial reporting of leasing transactions through ASU No. 2016-02, “Leases (Topic 842)." The amendments require lessees to recognize assets and liabilities on the balance sheet and disclose key information about leasing arrangements. Lessees will need to recognize a right-of-use asset and a lease liability for virtually all of their leases (other than leases that meet the definition of a short-term lease). Lessor accounting is similar to the current model, but updated to align with certain changes to the lessee model. For income statement purposes, the pattern of expense recognition will depend on whether transactions are designated as operating leases or finance leases. In January 2018, the FASB issued amendments on the lease standard’s application to land easements through ASU No. 2018-01, “Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842.” The amendments allow an entity to not evaluate under Topic 842 land easements that exist or expired before the entity’s adoption of Topic 842 and that were not previously accounted for as leases under the current lease standard. The amendments are effective for reporting periods beginning after December 15, 2018. Early adoption is permitted. The amendments must be adopted using a modified retrospective transition and provide for certain practical expedients. Based on the existing portfolio of leases at implementation, for leases currently classified as operating leases, the Companies expect to recognize on the statements of financial position right-of-use assets and lease liabilities. The Companies are in the process of evaluating the potential impact of the new guidance on the Companies’ results of operations and liquidity.

In January 2017,March 2023, the FASB issued amendments to the guidance on accounting for Business CombinationsInvestments—Equity Method and Joint Ventures (Topic 323) through ASU 2017-01, “Business Combinations (Topic 805): Clarifying the Definition of a Business.”2023-02. The amendments in this update clarifywould expand the definitionuse of the proportional amortization method of income recognition. The Companies do not expect the new guidance to have a businessmaterial impact on their financial position, results of operations and provideliquidity.

In November 2023, the FASB issued amendments to the guidance on evaluating whether transactions should be accountedaccounting for as acquisitions (or disposals) of assets or businesses.Segment Reporting (Topic 280) through ASU 2023-07. The amendments would improve the disclosures about a public entity’s reportable segments and address requests from investors for additional, more detailed information about a reportable segment’s expenses. For public entities, the amendments are effective for annual reporting periods beginning after December 15, 2017.2023, and interim periods within fiscal years beginning after December 15, 2024. A public entity should apply such amendments retrospectively to all prior periods presented in the financial statements. The application of thisCompanies do not expect the new guidance is not expected to have a material impact on the Companies’their financial position, results of operations and liquidity.


In January 2017,December 2023, the FASB issued amendments to the guidance on accounting for the subsequent measurement of goodwillIncome Taxes (Topic 740) through ASU 2017-04, “Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.”2023-09. The amendments in this update simplify goodwill impairment testing by eliminating Step 2 ofwould improve the goodwill impairment test wherein an entity hasdisclosures related to compute the implied fair value of goodwill by performing proceduresincome taxes. The amendments focus on three key areas: Rate Reconciliation, Income Taxes Paid, and Income (or loss)/Income tax expense (or benefit) relating to

156CON EDISON ANNUAL REPORT 2017



determine the fair value of its assets and liabilities. Under the new guidance, an entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value up to the total amount of goodwill allocated to that reporting unit. disaggregated continuing operations. For public entities, the amendments are effective for annual reporting periods beginning after December 15, 2019.2024. Early adoption is permitted.permitted for annual financial statements. The application of thisCompanies do not expect the new guidance is not expected to have a material impact on the Companies’their financial position, results of operations and liquidity.


Note W – Dispositions
Crane and Coram
In February 2017,April 2021, a subsidiary of the FASB issued amendmentsClean Energy Businesses entered into an agreement to the guidance for other income through ASU 2017-05, “Other Income-Gainssell substantially all of its membership interests in a renewable electric project that it developed and Losses from the Derecognitionalso all of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scopeits membership interests in a renewable electric project that it acquired in 2016. The sales were completed in June 2021. The combined carrying value of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets.”both projects was approximately $192 million in June 2021. The amendments in this update clarify the scope of assets within Subtopic 610-20 and add guidance for partial sales of nonfinancial assets. The amendments are effective upon the adoption of ASU 2014-09, and therefore will be effective for reporting periods beginning after December 15, 2017. The application of this guidance is not expected to have a material impactnet pre-tax gain on the Companies’ financial position, results ofsales was $3 million ($2 million after-tax) and was included within "Other operations and liquidity.

In March 2017,maintenance" on Con Edison's consolidated income statement for the FASB issued amendments toyear ended December 31, 2021. The retained portion of the guidance for retirement benefits through ASU 2017-07, “Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost.” The amendments in this update modify the presentation of net benefit cost, where the service component must be disaggregated from the other components of net benefit cost and be presentedmembership interest in the same line item as current employee compensation costs. The remaining componentsrenewable electric project, of the net benefit cost should be presented outside of income from operations. Additionally, the update allows only the service cost component to be eligible for capitalization. For public entities, the amendments are effective for reporting periods beginning after December 15, 2017. The guidance allows a practical expedient that permits the use of amounts disclosed in prior-period financial statements as appropriate estimates when applying the presentation requirements retrospectively. The Companies have elected to use the practical expedient under ASU 2017-07. The application of this guidance is not expected to have a material impact on the Companies’ financial position, results of operations and liquidity.

In March 2017, the FASB issued amendments to the guidance for debt securities through ASU 2017-08, “Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities.” The amendments in this update shorten the amortization period for certain callable debt securities held at a premium. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. For public entities, the amendments are effective for reporting periods beginning after December 15, 2018. Early adoption is permitted. The application of this guidance is not expected to have a material impact on the Companies’ financial position, results of operations and liquidity.

In May 2017, the FASB issued amendments to the guidance for stock compensation through ASU 2017-09, “Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting.” The amendments in this update specify that changes to value, vesting conditions, or classification of an existing share-based payment award require application of modification accounting in Topic 718. For public entities, the amendments are effective for reporting periods beginning after December 15, 2017.The application of this guidance is not expected to have a material impact on the Companies’ financial position, results of operations and liquidity.

In August 2017, the FASB issued amendments to the guidance for derivatives and hedging through ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities.” The amendments in this update provide greater clarification on hedge accounting for risk components, presentation and disclosure of hedging instruments, and overall targeted improvements to simplify hedge accounting. For public entities, the amendments are effective for reporting periods beginning after December 15, 2018. Early adoption is permitted. The Companies are in the process of evaluating the potential impact of the new guidance on the Companies’ financial position, results of operations and liquidity.

In February 2018, the FASB issued amendments to the guidance for reporting comprehensive income through ASU 2018-02, “Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” The amendments allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the TCJA. For public entities, the amendments are effective for reporting periods beginning after December 15, 2018. Early adoption is permitted. The Companies are in the process of evaluating the potential impact of the new guidance on the Companies’ financial position, results of operations and liquidity.

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Note U – Acquisitions, Investments and Dispositions
Acquisitions and Investments

Texas Solar 7
In January 2016, Con Edison Development acquired a 100 percent equity interest in a company that is the owner of a 106 MW (AC) solar electric production project in Texas (Texas Solar 7) for $227 million, as to which $218$11 million, was recorded as non-utility construction work in progresscalculated based on a discounted cash flow of future projected earnings, and the remaining $9 million was recorded as other receivables. The project commenced commercial operation in the third quarter of 2016. The project has been financed, in part, by debt secured by the project. Electricity generated by this projectretained portion is to be purchased by the City of San Antonio pursuant to a long-term power purchase agreement. At December 31, 2017 and 2016, net assets of the project were approximately $137 million and $127 million, respectively, (including $41 millionaccounted for an intangible asset pertaining to the value of the power purchase agreement). Con Edison's equity interest in Texas Solar 7 is consolidated in the financial statements.

Mountain Valley Pipeline
In January 2016, CET Gas acquired a 12.5 percent equity interest in MVP, a company developing a proposed gas transmission project in West Virginia and Virginia. The company's initial contribution to MVP was $18 million. At December 31, 2017 and 2016, CET Gas' investment in MVP was $98 million and $48 million, respectively. MVP has indicated that the project has an estimated total cost of $3,000 million to $3,500 million and is targeted to be fully in-service during the fourth quarter of 2018. Con Edison is accounting for its equity interest in MVP as an equity method investment.
NY Transco
In May 2016, CECONY transferred certain electric transmission projects The portion of the gain attributable to NY Transco, a company in which CET Electric has a 45.7 percent equitythe retained portion of the membership interest was not material for a purchase price of $122 million and an $8 million payment for associated easement rights. Atthe year ended December 31, 2017 and 2016, CET Electric's investment in NY Transco was $53 million and $51 million, respectively.2021. See Note S. On March 1, 2023, Con Edison is accounting for its equity interest in NY Transco as an equity method investment.completed the sale of all of the stock of the Clean Energy Businesses. See Note W and Note X.


Stagecoach Gas Services
In April 2016, a CET Gas subsidiary agreed with2021, a subsidiary of Crestwood to form aCon Edison Transmission and its joint venture partner agreed to own, operatesell 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 Con Edison Transmission for its 50 percent interest. The purchase and further develop existing gas pipeline and storage businesses located in northern Pennsylvania and southern New York. The transactionsale agreement provided for a two-stage closing, the first of which was substantially completed in June 2016,July 2021 and the remaindersecond of which was completed in November 2016. Crestwood contributed businesses to a new entity, Stagecoach, and the CET Gas subsidiary contributed $974 million for a 50 percent equity interest in Stagecoach. At December 31, 2017 and 2016, CET Gas' investment2021. See "Investments - 2021 Partial Impairment of Investment in Stagecoach was $971 million and $992 million, respectively.Gas Services LLC (Stagecoach)" in Note A.

Clean Energy Businesses
During the first nine months of 2022, Con Edison is accountingconsidered strategic alternatives with respect to the Clean Energy Businesses. On October 1, 2022, following the conclusion of such review and to allow for its equity interest in Stagecoach as an equity method investment.
Pilesgrove
In June 2016,continued focus on the Utilities and their clean energy transition, Con Edison Development recorded an $8 million ($5 million, net of taxes) impairment charge on its 50 percent equity interest in Pilesgrove Solar, LLC (Pilesgrove),entered into a purchase and sale agreement pursuant to which owns an 18 MW (AC) solar electric production project in New Jersey. In August 2016, Con Edison Development acquired the remaining 50 percent equity interest in Pilesgrove for a purchase price of approximately $16 million and recorded a bargain purchase gain of $8 million ($5 million, net of taxes); $45 million was recorded as non-utility property and the remaining $3 million was recorded as current assets. The impairment charge and bargain purchase gain are included in Investment and other income on Con Edison’s consolidated income statement. At December 31, 2017 and 2016, net assets of the project were approximately $45 million. Con Edison's equity interest in Pilesgrove is consolidated in the financial statements.

Panoche Valley
In October 2016, Con Edison Development, which owned a 50 percent equity interest, acquired the remaining 50 percent equity interest in Panoche Holdings, LLC (Panoche), which is developing a 240 MW (AC) solar electric production project in California, for cash consideration of $28 million and the release of Panoche from its obligation under a $242 million note payable to Con Edison Development. At the time of acquisition, $290 million was recorded as non-utility construction work in process, $22 million was recorded as other assets and $14 million was

158CON EDISON ANNUAL REPORT 2017



recorded as current liabilities. A part of the project commenced commercial operation in December 2017. At December 31, 2017 and 2016, net assets of the project were approximately $435 million and $388 million, respectively. Con Edison's equity interest in Panoche is consolidated in the financial statements.

Coram Wind
In December 2016, Con Edison Development acquired a 100 percent equity interest in Coram California Development, LP (Coram), which owns a 102 MW (AC) wind electric production project in California for $97 million, as to which $191 million was recorded as non-utility property, $78 million was recorded as an intangible asset, $8 million of restricted cash was recorded as other current assets, and $180 million was recorded as long term debt. In December 2017, an increase of $22 million was recorded to the intangible asset and a corresponding decrease was recorded to non-utility property. The intangible asset pertains to the value of the project's power purchase agreement, relative to current market rates, and is being amortized over the life of the agreement. The project commenced commercial operation in March 2012. At December 31, 2017 and 2016, net assets of the project were approximately $87 million and $96 million, respectively. Con Edison's equity interest in Coram is consolidated in the financial statements.

Dispositions

Pike County Light & Power Company (Pike)
In October 2015, O&R entered into an agreement to sell Pike to Corning Natural Gas Holding Corporation (Corning). In August 2016, the sale was completed. O&R received cash consideration of $15 million for the sale. O&R has agreed to provide transition services to Corning for operations and customer support for a period of up to 18 months subsequent to the sale. In addition, O&R will continue to purchase and sell to Pike electric and gas commodity for three years. Pike has an option to extend the commodity procurement service for up to an additional three years. At September 30, 2015, O&R recorded an impairment charge of $5 million ($3 million, net of taxes), representing the difference between the carrying amount of Pike’s assets and the estimated sales proceeds.

Con Edison Solutions' Retail Electric Supply Business
In July 2016, Con Edison Solutions entered into an agreement to sell the assets of its retail electric supply business (including retail contracts, related derivative instruments, information systems, and accounts receivable)Clean Energy Businesses to RWE Renewables Americas, LLC, a subsidiary of Exelon Corporation (Exelon). In September 2016, the sale was completedRWE for cash considerationa total of $235$6,800 million, subject to working capitalclosing adjustments. TheOn March 1, 2023, Con Edison completed the sale resulted in a gain of $104 million ($56 million, net of taxes), inclusive of a $65 million ($42 million, net of taxes) gain on derivative instruments. The tax effectall of the sale included $16 million ($10 million, netstock of federal tax) of state taxes relatedthe Clean Energy Businesses to a change in the apportionment of state income taxes. Con Edison Solutions provided transition services to the Exelon subsidiaryRWE for operations$3,993 million. The preliminary purchase price at closing was adjusted (i) upward for certain cash and customer support through January 2018 during a portion of which periodcash equivalents, (ii) downward for certain guarantees or other credit support provided by Con Edison in connection with the retail electric supply business continued in effect. See Note H.

Upton 2
In May 2017, Con Edison Development sold Upton 2, a development stage solar electric production project, for $11 million to Vistra Asset Co.indebtedness and recorded a $1 million gain on sale ($0.7 million, net of taxes). In addition, Con Edison Development agreed to perform the engineering, procurement and construction for the 180 MW (AC) project, which is expected to be substantially completed in 2018.





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CON EDISON ANNUAL REPORT 2023


debt-like items, (iii) downward for certain transaction expenses, (iv) downward to the extent that the net working capital varied from a set target, (v) upward to the extent that capital expenditures incurred prior to the closing of the transaction varied from a set budget, and (vi) downward by the value allocated to Broken Bow II, a project that was not able to be conveyed to RWE upon closing of the transaction. The final purchase price is subject to customary adjustments for timing differences and a final valuation report, among other factors; the process to finalize the purchase price is ongoing. The transaction was completed at arm’s length and RWE was not, and will not be, considered a related party to Con Edison.

Con Edison's preliminary gain on the sale of the Clean Energy Businesses was $865 million ($767 million, after tax) for the year ended December 31, 2023 and remains subject to true-up for the finalization adjustments described above. The portion of the gain attributable to the non-controlling interest retained in certain tax-equity projects was not material. The sale included all of the Clean Energy Businesses with the exception of tax equity interests in three projects, described below, and one deferred project, Broken Bow II, a 75 MW nameplate capacity wind power project located in Nebraska. See Note X. Transfer of the project depends on one outstanding counterparty consent, and if and when such consent is obtained within two years of the sale of the Clean Energy Businesses, i.e., by February 28, 2025, the project will transfer. RWE Renewables Americas, LLC is operating the facility on behalf of Con Edison pursuant to certain service agreements, for which the fees are not material.

Con Edison retained the Clean Energy Businesses' tax equity investment interest in the Crane solar project and another tax equity investment interest in two solar projects located in Virginia. 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. The combined carrying value of the retained tax equity interests was approximately $13 million at December 31, 2023.

Con Edison has also retained 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 unamortized deferred investment tax credits of the Clean Energy Businesses were recognized in full upon the completion of the sale of the Clean Energy Businesses.

Concurrent with entering into the purchase and sale agreement, Con Edison incurred costs in the normal course of the sale process. Transaction costs of $48 million ($35 million after-tax) and $12 million ($9 million after-tax) were recorded during 2022 and 2023, respectively. Also, depreciation and amortization expenses of approximately $41 million ($28 million after-tax) were not recorded on the assets of the Clean Energy Businesses in 2023 prior to the closing of the transaction.

Following the sale of the Clean Energy Businesses and pursuant to a reimbursement and indemnity agreement with RWE, Con Edison remains responsible for certain potential costs related to a battery storage project located in Imperial County, California. Con Edison's exposure under the agreement could range up to approximately $172 million. As of December 31, 2023, no material amounts were recorded as liabilities on Con Edison's consolidated balance sheet related to this agreement. During 2023, Con Edison received $24 million of net proceeds from this battery storage project, and $4 million was recorded as unbilled contract revenue as of December 31, 2023. See Note M.

The following table shows the pre-tax operating income for the Clean Energy Businesses.


For the Year Ended December 31,
(Millions of Dollars)202320222021
Pre-tax operating income$25$466$310
Pre-tax operating income, excluding non-controlling interest21406158

Note X - Held-for-Sale Treatment of the Clean Energy Businesses
On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note W. The sale excluded tax equity interests in three projects that were retained by Con Edison and one deferred project, Broken Bow II, a 75 MW nameplate capacity wind power project located in Nebraska. Transfer of Broken Bow II
CON EDISON ANNUAL REPORT 20172023159171


from Con Edison to RWE depends on one outstanding counterparty consent, and if and when such consent is obtained within two years of the sale of the Clean Energy Businesses, i.e., by February 28, 2025, the project will transfer. RWE Renewables Americas, LLC is operating the facility on behalf of Con Edison pursuant to certain service agreements for which the fees are not material.

The carrying amounts of the major classes of assets and liabilities of Broken Bow II as of December 31, 2023 and of the Clean Energy Businesses (inclusive of Broken Bow II) as of December 31, 2022 were presented on a held-for-sale basis, and accordingly exclude net deferred tax liability balances, as follows:


(Millions of Dollars)December 31,
2023		December 31,
2022
ASSETS
CURRENT ASSETS
Cash and temporary cash investments$—$25
 Accounts receivable and other receivables - net allowance for uncollectible accounts1319
Accrued unbilled revenue151
Fuel oil, gas in storage, materials and supplies, at average cost—56
Restricted cash5223
Fair value of derivatives assets—84
Prepayments—35
Other current assets124
TOTAL CURRENT ASSETS8817
NON-UTILITY PLANT
Non-utility property, net accumulated depreciation764,197
Construction work in progress—522
NET PLANT764,719
OTHER NONCURRENT ASSETS
Goodwill— 31
Intangible assets, less accumulated amortization721,222
Operating lease right-of-use asset7266
Fair value of derivatives assets—93
Other deferred charges and noncurrent assets—14
TOTAL OTHER NONCURRENT ASSETS791,626
TOTAL ASSETS$163$7,162


(Millions of Dollars)December 31,
2023		December 31,
2022
LIABILITIES
CURRENT LIABILITIES
Long-term debt due within one year$2$353
Term loan—150
Accounts payable—326
Operating lease liabilities233
Accrued Interest—40
Other current liabilities471
TOTAL CURRENT LIABILITIES8973
NONCURRENT LIABILITIES
Asset retirement obligations377
Operating lease liabilities5248
Other deferred credits and noncurrent liabilities—20
TOTAL NONCURRENT LIABILITIES8345
LONG-TERM DEBT602,292
TOTAL LIABILITIES$76$3,610

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CON EDISON ANNUAL REPORT 2023





Schedule I
Condensed Financial Information of Consolidated Edison, Inc. (a)
Condensed Statement of Income and Comprehensive Income
(Parent Company Only)
 
 For the Years Ended December 31,
(Millions of Dollars, except per share amounts)202320222021
Equity in earnings of subsidiaries$1,759$1,860$1,369
Other operating and maintenance expenses—(1)(1)
Taxes other than income taxes(2)(7)(6)
Other income (deductions)7(31)14
Interest expense(14)(32)(37)
Income tax benefit (expense)(96)(129)7
Gain on the sale of the Clean Energy Businesses865——
Net Income$2,519$1,660$1,346
Comprehensive Income$2,520$1,677$1,376
Net Income Per Share – Basic$7.25$4.68$3.86
Net Income Per Share – Diluted$7.21$4.66$3.85
Dividends Declared Per Share$3.24$3.16$3.10
Average Number Of Shares Outstanding—Basic (In Millions)347.7354.5348.4
Average Number Of Shares Outstanding—Diluted (In Millions)349.3355.8349.4
 For the Years Ended December 31,
(Millions of Dollars, except per share amounts)2017 2016 2015
Equity in earnings of subsidiaries$1,544 $1,254 $1,195
Other income (deductions), net of taxes31 32 27
Interest expense(50) (41) (29)
Net Income$1,525 $1,245 $1,193
Comprehensive Income$1,526 $1,252 $1,204
Net Income Per Share – Basic$4.97 $4.15 $4.07
Net Income Per Share – Diluted$4.94 $4.12 $4.05
Dividends Declared Per Share$2.76 $2.68 $2.60
Average Number Of Shares Outstanding—Basic (In Millions)307.1 300.4 293.0
Average Number Of Shares Outstanding—Diluted (In Millions)308.8 301.9 294.4
(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.

(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.





160CON EDISON ANNUAL REPORT 20172023173





Condensed Financial Information of Consolidated Edison, Inc. (a)
Condensed Statement of Cash Flows
(Parent Company Only)
 
 For the Years Ended December 31,
(Millions of Dollars)202320222021
Net Cash Flows From Operating Activities$772$1,015$1,459
Investing Activities
Contributions to subsidiaries(1,854)(150)(1,135)
Debt receivable from affiliated companies——875
Proceeds from sale of the Clean Energy Businesses, net of cash and cash equivalents sold3,927——
Net Cash Flows From (Used in) Investing Activities2,073(150)(260)
Financing Activities
Net (payment)/issuance of short-term debt(343)63250
Retirement of long-term debt(650)(293)(1,178)
Debt issuance costs——(1)
Repurchase of common shares(1,000)——
Issuance of common shares for stock plans565760
Issuance of common shares - public offering——775
Common stock dividends(1,096)(1,089)(1,030)
Net Cash Flows Used in Financing Activities(3,033)(693)(1,324)
Net Change for the Period(188)172(125)
Balance at Beginning of Period19119144
Balance at End of Period$3$191$19
 For the Years Ended December 31,
(Millions of Dollars)2017
 2016
 2015
Net Income$1,525 $1,245 $1,193
Equity in earnings of subsidiaries(1,544) (1,254) (1,195)
Dividends received from:     
CECONY796 744 872
O&R44 43 81
Clean Energy Businesses12 10 8
Con Edison Transmission8 —
 —
Change in Assets:     
Special deposits—
 —
 —
Income taxes receivable34 87 58
Other – net21 (152) (382)
Net Cash Flows from Operating Activities896
723 635
Investing Activities     
Contributions to subsidiaries(434) (691) (15)
Long term debt receivable from affiliated companies—
 (900) —
Net Cash Flows Used in Investing Activities(434)
(1,591) (15)
Financing Activities     
Net proceeds of short-term debt(53) (53) 162
Issuance of long-term debt400 900 —
Retirement of long-term debt(402) (2) (2)
Debt issuance costs(2) (5) —
Issuance of common shares for stock plans, net of repurchases51 51 1
Issuance of common shares - public offering343 702 —
Common stock dividends(803) (763) (733)
Net Cash Flows Used in Financing Activities(466)
830 (572)
Net Change for the Period(4) (38) 48
Balance at Beginning of Period13 51 3
Balance at End of Period$9 $13 $51
(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.

(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.





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CON EDISON ANNUAL REPORT 20171612023




Condensed Financial Information of Consolidated Edison, Inc. (a)
Condensed Balance Sheet
(Parent Company Only)
 
 December 31,
(Millions of Dollars)20232022
Assets
Current Assets
Cash and temporary cash investments$3$191
Other receivables, net allowance for uncollectible accounts1034
Tax receivable15
Accounts receivable from affiliated companies3431,337
Accrued unbilled revenue4—
Prepayments1099
Other current assets332
Total Current Assets5661,578
Investments in subsidiaries and others20,77820,839
Goodwill406406
Pension and retiree benefits - asset55
Other deferred charges and noncurrent assets2492
Total Assets$22,004$22,830
Liabilities and Shareholders’ Equity
Current Liabilities
Long-term debt due within one year$—$649
Term loan—400 
Notes payable339282
Accounts payable3039
Accounts payable to affiliated companies1211
Accrued taxes157
Accrued taxes to affiliated companies437506
Accrued interest—7
Other current liabilities87
Total Current Liabilities8411,908
Deferred income taxes and unamortized investment tax credits—235
Other noncurrent liabilities5 —
Total Liabilities8462,143
Shareholders’ Equity
Common stock, including additional paid-in capital9,8989,840
Retained earnings11,26010,847
Total Shareholders’ Equity21,15820,687
Total Liabilities and Shareholders’ Equity$22,004$22,830
  December 31,
(Millions of Dollars) 2017 2016
Assets    
Current Assets    
Cash and temporary cash investments $9 $13
Income taxes receivable 45 79
Accounts receivable from affiliated companies 687 702
Prepayments 36 24
Other current assets 18 19
Total Current Assets 795
837
Investments in subsidiaries 15,110 13,991
Goodwill 406 406
Deferred income tax 18 42
Long term debt receivable from affiliated companies 900 900
Other noncurrent assets 2 16
Total Assets $17,231
$16,192
Liabilities and Shareholders’ Equity    
Current Liabilities    
Long-term debt due within one year $2 $2
Notes payable 331 384
Accounts payable to affiliated companies 274 288
Other current liabilities 10 22
Total Current Liabilities 617
696
Total Liabilities 617
696
Long-term debt 1,195 1,198
Shareholders’ Equity    
Common stock, including additional paid-in capital 6,331 5,887
Retained earnings 9,088 8,411
Total Shareholders’ Equity 15,419
14,298
Total Liabilities and Shareholders’ Equity $17,231
$16,192
(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.

(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.



162CON EDISON ANNUAL REPORT 2017



Schedule II
Valuation and Qualifying Accounts
For the Years Ended December 31, 2017, 2016 and 2015
     
COLUMN C
Additions
    
Company
(Millions of Dollars)
COLUMN A
Description
   
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
Con Edison
Allowance for uncollectible
accounts (a):
            
   2017 $83 $64 
$—
 $77 $70
   2016 $96 $63 
$—
 $76 $83
   2015 $106 $77 
$—
 $87 $96
CECONY
Allowance for uncollectible
accounts (a):
            
   2017 $78 $60 
$—
 $73 $65
   2016 $91 $57 
$—
 $70 $78
   2015 $98 $69 
$—
 $76 $91
(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 20172023163175




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 wasIn October 2023, CECONY and O&R replaced their separate existing customer billing and information systems with a single new customer billing and information system. The Utilities expect the new system to further automate the processes by which the Utilities bill their customers and enhance payment, credit and collections activities. Throughout this system implementation, the Utilities appropriately considered internal controls over financial reporting. Other than with respect to this item, there were no changechanges 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 EdisonDuring the three months ended December 31, 2023, no director or officer (as defined in Rule 16a-1(f) of the Securities Exchange Act of 1934, as amended) adopted, terminated or modified any Rule 10b5-1 or non-Rule 10b5-1 trading arrangement (as defined in Item 408(a) of Regulation S-K).
None.
CECONY
None.Item 9C: Disclosure Regarding Foreign Jurisdictions that Prevent Inspections


Not Applicable.
164

176
CON EDISON ANNUAL REPORT 20172023





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 StockholderMatters


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 21, 2018.20, 2024. The proxy statement is to be filed pursuant to Regulation 14A not later than 120 days after December 31, 2017,2023, 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, 20172023 is as follows:
Equity Compensation Plan Information
Plan category
Number of securities to
be issued upon
exercise of
outstanding options,
warrants and rights
 
Weighted-average
exercise price of
outstanding options,
warrants and rights
Number of securities
remaining available for
future issuance under
equity compensation
plans (excluding
securities reflected in
column (1))
 (1)  (2)(3)
Equity compensation plans approved by security holders
2003 LTIP (a)35,819  ——
2013 LTIP (b)1,595,201  —2,725,420
2023 LTIP (b)25,653—9,974,347
Stock Purchase Plan (c)—  —2,521,178
Total equity compensation plans approved by security holders1,656,673  —15,220,945
Total equity compensation plans not approved by security holders———
Total1,656,673  —15,220,945
Plan category
Number of securities to
be issued upon
exercise of
outstanding options,
warrants and rights
  
Weighted-average
exercise price of
outstanding options,
warrants and rights
 
Number of securities
remaining available for
future issuance under
equity compensation
plans (excluding
securities reflected in
column (1))
 (1)  (2) (3)
Equity compensation plans approved by security holders      
2003 LTIP (a)334,025
   —
 —
2013 LTIP (b)1,401,697
   —
 3,333,701
Stock Purchase Plan (c)—
   —
 7,346,946
Total equity compensation plans approved by security holders1,735,722
   —
 10,680,647
Total equity compensation plans not approved by security holders3,000
(d)  —
 —
Total1,738,722
   —
 10,680,647
(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 35,819 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.
(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: (A) 211,977 shares for stock unit awards made prior to 2013 that have vested and for which the receipt of shares was deferred and (B) 122,048 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. 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 (1,183,364 shares for performance restricted stock units and 64,870 shares for time-based restricted stock units); (B) 153,463 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.

(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 (924,898 shares for performance restricted stock units and 345,199 shares for time-based restricted stock units); (B) 325,104 shares covered by outstanding directors’ deferred stock unit awards (which vested upon grant)), and under the Long Term Incentive Plan approved by the company's shareholders in 2023 (the "2023 LTIP"), 25,653 shares covered by outstanding directors’ deferred stock unit awards (which vest 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.
(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).

For additional information about Con Edison’s stock-based compensation, see Note MO 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 “Executive Officers of the Registrant.“Information about our Executive Officers.”
 

CON EDISON ANNUAL REPORT 2017165


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 2023177



Fees paid or payable by CECONY to its principal accountant, PricewaterhouseCoopers LLP, for services related to 20172023 and 20162022 are as follows:
20232022
Audit fees$5,009,627$3,690,800
Audit-related fees (a)909,768753,795
Total fees$5,919,395$4,444,595
 2017
 2016
Audit fees$3,664,793 $3,576,897
Audit-related fees (a)739,834 516,786
Tax fees (b)—
 25,000
Total fees$4,404,627
$4,118,683
(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 2022 and 2023 are fees related to reviews of system implementations and associated internal controls.
(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 2017 and 2016 are fees related to reviews of system implementations.
(b)The fees in 2016 were for tax compliance reporting relating to the Foreign Account Tax Compliance Act.



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.
 

166

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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 20172023167179




Con Edison
3.1.1
3.1.1
Restated Certificate of Incorporation of Consolidated Edison, Inc. (Con Edison).(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 16, 2017.18, 2021. (Designated in Con Edison’s Current Report on Form 8-K, dated February 16, 201718, 2021 (File No. 1-14514) as Exhibit 3.1)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)
4.1.1.1
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 theCon Edison's Registration Statement on Form S-3 of Con Edison (No. 333-102005) as Exhibit 4.1)
4.1.1.24.1.2.2
Form of CEI’s 2.00% Debentures, Series 2016 A. (Designated in CEI’s Current Report on Form 8-K, dated May 10, 2016 (File No. 1-14514) as Exhibit 4)
4.1.1.3
Form of CEI’s 2.00% Debentures, Series 2017 A. (Designated in CEI’s Current Report on Form 8-K, dated March 2, 2017 (File No. 1-4514) as Exhibit 4)
4.1.2
Note Assumption and Exchange Agreement,First Supplemental Indenture, dated as of June 20, 2008,August 1, 2009, between Con Edison and the institutional investors listed in Schedule I thereto.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 Current Report on Form 8-K, dated June 20, 2008 (File No. 1-14514)Registration Statement (No. 333-161018) as Exhibit 4)4.2)
10.1.1.110.1.1
Credit Agreement, dated as of December 7, 2016, among CECONY, Con Edison, O&R, the lenders party thereto and Bank of America, N.A. March 27, 2023, 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'sEdison’s Current Report on Form 8-K dated January 8, 2018March 27, 2023 (File No. 1-14514) as Exhibit 10)10.1)
10.1.2.110.1.3.1
10.1.3.2
Amendment to the Severance Program for Officers of Consolidated Edison, Inc. and its Subsidiaries. (Designated in Con Edison's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2023 (File No. 1-14514) as Exhibit 10.1.5)
10.1.4
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 10.1)
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)
10.1.4.4
Amendment Four to The Consolidated Edison, Inc. Stock Purchase Plan. (Designated in Con Edison's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2023 (File No. 1-14514) as Exhibit 10.1.7)
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, 20082017 (File No. 1-14514) as Exhibit 10.1.3)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)

10.1.2.2
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, 2021 (File No. 1-14514) as Exhibit 10.1.4.10)
10.1.5.11
Amendment to the Consolidated Edison Retirement Plan, effective October 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 10.1.5.11)
10.1.5.12
Amendment to the Consolidated Edison Retirement Plan, effective March 1, 2023(Designated in Con Edison's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2023 (File No. 1-14514) as Exhibit 10.1.8)
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, #1, dated December 19, 2012,18, 2017, to the Severance ProgramConsolidated Edison Thrift Savings Plan. (Designated in Con Edison's Annual Report on 10-K for Officers of 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)


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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)
10.1.6.8
Amendment to the Consolidated Edison Thrift Savings Plan, effective March1, 2023. (Designated in Con Edison's Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2023 (File No. 1-14514) as Exhibit 10.1.4)
10.1.7.1
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)

10.1.7.2
Amendment to the Consolidated Edison, Inc. Supplemental Defined Contribution Pension Plan. (Designated in Con Edison’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2023 (File No. 1-14514) as Exhibit 10.1.6)

10.1.8.1
Consolidated Edison, Inc. Long Term Incentive Plan (2003), as amended and its Subsidiaries. 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 10.1.4.2)10.1.8.1)
10.1.3.110.1.8.2
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)
10.1.3.2
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)
10.1.4.1
The Consolidated Edison Retirement Plan. (Designated in Con Edison’s Annual Report on Form 10-K for the year ended December 31, 2014 (File No. 1-14514) as Exhibit 10.1.4)
10.1.4.2

Amendment, dated December 18, 2017, to the Consolidated Edison Retirement Plan

10.1.5.1
The Consolidated Edison Thrift Plan. (Designated in Con Edison’s Annual Report on Form 10-K for the year ended December 31, 2014 (File No. 1-14514) as Exhibit 10.1.5)
10.1.5.2
Amendment, dated June 13, 2016, to the Consolidated Edison Thrift Savings Plan. (Designated in Con Edison’s Quarterly Report on Form 10-Q for the year quarterly period ended June 30, 2016 (File No. 1-14514) as Exhibit 10.1)
10.1.5.3

Amendment, dated December 18, 2017, to the Consolidated Edison Thrift Savings Plan
10.1.6.1
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 10.1.8.10)
10.1.6.2
Form of Restricted Stock Unit Award under the Con Edison Long Term Incentive Plan. (Designated in Con Edison’s Annual Report on Form 10-K for the year ended December 31, 2008 (File No. 1-14514) as Exhibit 10.1.7.2)
10.1.6.3
Form of Restricted Stock Unit Award for Officers under the Con Edison Long Term Incentive Plan. (Designated in Con Edison’s Quarterly Report on Form 10-Q for the year quarterly period ended March 31, 2011 (File No. 1-14514) as Exhibit 10.1)

168CON EDISON ANNUAL REPORT 2017



10.1.6.4
Form of Stock Option Agreement under the Con Edison Long Term Incentive Plan. (Designated in Con Edison’s Current Report on Form 8-K, dated January 24, 2005, (File No. 1-14514) as Exhibit 10.3)
10.1.6.5
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)
10.1.6.610.1.8.3
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)
10.1.7.110.1.9.1
Consolidated Edison, Inc. Long Term Incentive Plan.Plan (Designated (2013).(Designated in Con Edison’s Current Report on Form 8-K, dated May 20, 2013 (File No. 1-14514) as Exhibit 10)
10.1.7.210.1.9.2
Form of Performance Unit Award for Officers under the Consolidated Edison, Inc. Long Term Incentive Plan. (Designated in Con Edison’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2013 (File No. 1-14514) as Exhibit 10.1.2)
10.1.7.3
Form of Performance Unit Award for Certain Specified Officers under the Consolidated Edison, Inc. Long Term Incentive Plan. (Designated in Con Edison’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2014 (File No. 1-14514) as Exhibit 10.1)
10.1.7.4
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)

10.1.7.510.1.9.3
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)
10.1.8
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)
10.1.10.1
The Consolidated Edison, Inc.2023 Long Term Incentive Plan. (Designated in Con Edison's Registration Statement on Form S-8 (No. 333-271934) as Exhibit 10)
10.1.10.2
10.1.10.3
10.1.11
The Consolidated Edison, Inc. Executive Incentive Plan(Amended &Restated effective January 1, 2024. (Designated in Con Edison's Current Report on Form 8-K, dated November 16, 2023 (File No. 1-14514) as Exhibit 10)
10.1.12

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 10.1.11)
10.1.910.1.13
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)
10.1.1010.1.14
Employment offer letter between Con Edison and Timothy P. Cawley, dated November 21, 2013 to John McAvoy. 19, 2020.(Designated (Designated in Con Edison’s Current Report on Form 8-K, dated November 21, 201319, 2020 (File No. 1-14514) as Exhibit 10)
10.1.11
10.1.15
12.121.1
21.1
Subsidiaries of Con Edison.Edison
23.1
31.1.1
31.1.2
32.1.1
32.1.2
97.1
101.INSXBRL Instance Document
101.SCHCON EDISON ANNUAL REPORT 2023181


101.SCHXBRL Taxonomy Extension Schema
101.CALXBRL Taxonomy Extension Calculation Linkbase
101.DEFXBRL Taxonomy Extension Definition Linkbase
101.LABXBRL Taxonomy Extension Label Linkbase
101.PREXBRL Taxonomy Extension Presentation Linkbase
104Cover Page Interactive Data File - The cover page iXBRL tags are embedded within the inline XBRL document
 
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.

CON EDISON ANNUAL REPORT 2017169



CECONY
 
3.2.1.1
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
3.2.2
3.2.2
By-laws of CECONY, effective January 18, 2018.February 1, 2024.(Designated in CECONY’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2023 (File No. 1-14514) as Exhibit 3.2)
4.2.1
4.2.2
Participation Agreement, dated as of November 1, 2010, between NYSERDA and CECONY.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)

4.2.34.2.2
Participation Agreement, dated as of November 1, 2001, between NYSERDA and CECONY. (Designated in CECONY’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2001 (File No. 1-1217) as Exhibit 10.2.1)
4.2.4
Participation Agreement, dated as of January 1, 2004, between NYSERDA and CECONY. (Designated in CECONY’s Annual Report on Form 10-K for the year ended December 31, 2003 (File No. 1-1217) as Exhibit 4.2.6)
4.2.5
Participation Agreement, dated as of January 1, 2004, between NYSERDA and CECONY. (Designated in CECONY’s Annual Report on Form 10-K for the year ended December 31, 2003 (File No. 1-1217) as Exhibit 4.2.7)
4.2.6
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)

4.2.74.2.3
Participation Agreement, dated as of May 1, 2005, between NYSERDA and CECONY. CECONY(Designated. (Designated in CECONY’s Current Report on Form 8-K, dated May 25, 2005 (File No. 1-1217) as Exhibit 4.1)



4.2.8.14.2.4.1
4.2.8.2
Supplemental Indenture of Trust, dated as of July 1, 2001, to Indenture of Trust, dated July 1, 1999 between NYSERDA and HSBC Bank USA, as trustee. (Designated in CECONY’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2001 (File No. 1-1217) as Exhibit 10.2.2)
4.2.9.1
Trust Indenture, dated as of November 1, 2010 between NYSERDA and The Bank of New York Mellon, as trustee.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)



4.2.9.24.2.4.2
First Supplemental Indenture dated November 2, 2012 to the Trust Indenture dated as of November 1, 2010.2010. (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)

4.2.104.2.5
Indenture of Trust, dated as of November 1, 2001, between NYSERDA and The Bank of New York, as trustee. (Designated in CECONY’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2001 (File No. 1-1217) as Exhibit 10.2.2)
4.2.11
Indenture of Trust, dated as of January 1, 2004, between NYSERDA and The Bank of New York. (Designated in CECONY’s Annual Report on Form 10-K for the year ended December 31, 2003 (File No. 1-1217) as Exhibit 4.2.12)
4.2.12
Indenture of Trust, dated as of January 1, 2004, between NYSERDA and The Bank of New York. (Designated in CECONY’s Annual Report on Form 10-K for the year ended December 31, 2003 (File No. 1-1217) as Exhibit 4.2.13)
4.2.13
Indenture of Trust, dated as of November 1, 2004, between NYSERDA and The Bank of New York.York. (Designated in CECONY’s Current Report on Form 8-K, dated November 9, 2004 (File No. 1-1217) as Exhibit 4.2)

4.2.14.14.2.6.1
Indenture of Trust, dated as of May 1, 2005, between NYSERDA and The Bank of New York.York. (Designated in CECONY’s Current Report on Form 8-K, dated May 25, 2005 (File No. 1-1217) as Exhibit 4.2)

4.2.14.24.2.6.2

4.2.15.14.2.7.1
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)

4.2.15.24.2.7.2
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)

4.2.15.34.2.7.3







170

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CON EDISON ANNUAL REPORT 20172023





4.2.8
4.2.16The following forms of CECONY’s Debentures, which are designated as follows:
Securities Exchange Act
File No. 1-1217
Debenture SeriesFormDateExhibit
5.875% Series 2003 A
8-K4/7/20034
5.10% Series 2003 C
8-K6/12/10/20034.2
5.70% Series 2004 B
8-K2/11/20044.2
5.30% Series 2005 A
8-K3/7/20054
5.25% Series 2005 B
8-K6/20/20054
5.85% Series 2006 A
8-K3/9/20064
6.20% Series 2006 B
8-K6/15/20064
5.70% Series 2006 E
8-K12/1/20064.2
 6.30% Series 2007 A
8-K8/28/20074
5.85% Series 2008 A
8-K4/4/20084.1
6.75% Series 2008 B
8-K4/4/20084.2
7.125% Series 2008 C
8-K12/4/20084
6.65% Series 2009 B
8-K3/25/20094.2
5.50% Series 2009 C
8-K12/4/20094
4.45% Series 2010 A
8-K6/7/20104.1
5.70% Series 2010 B
8-K6/7/2/20104.2
4.20% Series 2012 A
8-K3/13/8/20124
3.95% Series 2013 A
8-K2/25/20134
4.45% Series 2014 A
8-K3/3/20144
3.30% Series 2014 B
8-K11/19/20144.1
4.625% Series 2014 C
8-K11/19/20144.2
4.50% Series 2015 A
8-K11/12/20154
3.85% Series 2016A2016 A
8-K6/14/20164
2.90% Series 2016B2016 B
8-K11/10/20164.1
4.30% Series 2016C2016 C
8-K11/10/20164.2
3.875% Series 2017A2017 A
8-K6/5/20174
3.125% Series 2017B2017 B
8-K11/13/20174.1
4.00% Series 2017C2017 C
8-K11/13/20174.2
3.80% Series 2018 A
8-K5/7/20184.1 
4.50% Series 2018 B
8-K5/7/20184.2 
4.00% Series 2018 D
8-K11/27/20184.1 
4.65% Series 2018 E
8-K11/27/20184.2 
4.125% Series 2019 A
8-K5/6/20194 
3.70% Series 2019 B
8-K11/5/20194 
3.35% Series 2020 A
8-K3/26/20204.1 
3.95% Series 2020 B
8-K3/26/20204.2 
3.00% Series 2020 C
8-K11/9/20204 
2.40% Series 2021 A
8-K6/3/20214.1 
2.40% Series 2021 A
8-K11/29/20214.1 
3.60% Series 2021 B
8-K6/3/20214.2 
3.20% Series 2021 C
8-K11/29/20214.2 
6.15% Series 2022 A
8-K11/9/20224 
5.20% Series 2023 A
8-K2/21/20234 
5.50% Series 2023 B
8-K11/20/20234.1 
5.90% Series 2023 C
8-K11/20/20234.2 
 
10.2.1
364-Day Revolving Credit Agreement, dated as of March 27, 2023, 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 27, 2023 (File No. 1-1217) as Exhibit 10.2).
10.2.110.2.2
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(Designated in CECONY’s Current Report on Form 8-K, dated September 22, 2000 (File No. 1-1217) as Exhibit 10)
10.2.210.2.3
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)
10.2.3.110.2.4.1
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)
10.2.3.2CON EDISON ANNUAL REPORT 2023183


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)
10.2.3.310.2.4.3
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)
10.2.4.1
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)
10.2.4.8
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, 2023 (File No. 1-1217) as Exhibit 10.2.2)
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)
10.2.4.210.2.5.2
Amendment #1, dated December 26, 2012, to the Deferred Compensation Plan for the Benefit of Trustees of CECONY. (Designated(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)
10.2.510.2.6
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)

10.2.610.2.7

10.2.8.1
CON EDISON ANNUAL REPORT 2017171


10.2.7.1
The Consolidated Edison Company of New York, Inc. Deferred Income Plan, as amended and restated as of January 1, 2008.2019. (Designated(Designated in CECONY’s Annual Report on Form 10-K for the year ended December 31, 20082019 (File No. 1-1217) as Exhibit 10.2.10)10.2.7)
10.2.7.210.2.8.2
Amendment executed December 19, 2013, to The Consolidatedthe Consolidated Edison Company of New York, Inc.Inc. Deferred Income Plan. (Designated(Designated in CECONY’s AnnualQuarterly Report on Form 10-K10-Q for the yearquarterly period ended DecemberMarch 31, 20132023 (File No. 1-1217) as Exhibit 10.2.10.2)10.2.3)
10.2.7.310.2.9
Amendment One to the Consolidated Edison Company of New York, Inc. Deferred 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 10.2.10.3)
10.2.8.1
The Consolidated Edison Company of New York, Inc. 2005 Executive Incentive Plan, as amended and restated effective as of January 1, 2005, as amended effective as of January 1, 2008.2018 (Designated in CECONY’s Annual Report on Form 10-K for the year ended December 31, 2008 (File No. 1-1217) as Exhibit 10.2.11)
10.2.8.2
Amendment, dated October 21, 2009, to The Consolidated Edison Company of New York, Inc. 2005 Executive Incentive Plan. (Designated in CECONY’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2009 (File No. 1-1217) as Exhibit 10.2.1)
10.2.8.3
Amendment Number 2, dated December 17, 2010, to The Consolidated Edison Company of New York, Inc. 2005 Executive Incentive Plan. (Designated in CECONY’s Annual Report on Form 10-K for the year ended December 31, 2010 (File No. 1-1217) as Exhibit 10.2.11.3)
10.2.8.4
Amendment Number 3, dated December 21, 2011, to The Consolidated Edison Company of New York, Inc. 2005 Executive Incentive Plan. (Designated in CECONY’s Annual Report on Form 10-K for the year ended December 31, 2011 (File No. 1-1217) as Exhibit 10.2.11.4)
10.2.8.5
Amendment Number 4 to the 2005 Executive Incentive Plan. (Designated in CECONY’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 20122018 (File No. 1-1217) as Exhibit 10.2)

10.2.8.610.2.10.1
Amendment Number 5 to the 2005 Executive Incentive Plan. (Designated in CECONY’s Annual Report on Form 10-K for the year ended December 31, 2013 (File No. 1-1217) as Exhibit 10.2.11.6)
10.2.8.7
Amendment Number 6 to the 2005 Executive Incentive Plan. (Designated in CECONY’s Annual Report on Form 10-K for the year ended December 31, 2015 (File No. 1-1217) as Exhibit 10.2.11.7)
10.2.9.1
Trust Agreement, dated as of March 31, 1999, between CECONY and Mellon Bank, N.A., as Trustee. (Designated(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)
10.2.9.210.2.10.2
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)
12.223.2
23.2
Consent of PricewaterhouseCoopers LLP
31.2.1
31.2.2
32.2.1
32.2.2
101.INSXBRL Instance Document
101.SCHXBRL Taxonomy Extension Schema
101.CALXBRL Taxonomy Extension Calculation Linkbase
101.DEFXBRL Taxonomy Extension Definition Linkbase
101.LABXBRL Taxonomy Extension Label Linkbase
101.PREXBRL Taxonomy Extension Presentation Linkbase
104Cover Page Interactive Data File - The cover page iXBRL tags are embedded within the inline XBRL document


 


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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.



172CON EDISON ANNUAL REPORT 20172023185





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 15, 2018.2024.
Consolidated Edison, Inc.
Consolidated Edison Company of New York, Inc.
 
By
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 15, 2018.2024.
SignatureRegistrantTitle
SignatureRegistrantTitle
/s/ John McAvoyTimothy P. Cawley
Con Edison



Chairman of the Board, President, Chief Executive Officer and Director (Principal Executive Officer)
John McAvoyTimothy P. CawleyCECONY
CECONY
Chairman of the Board, Chief Executive Officer and Trustee (Principal Executive Officer)
/s/ Robert HoglundCon Edison
Senior Vice President and Chief Financial Officer

(Principal Financial Officer)
Robert HoglundCECONYCECONYSenior Vice President and Chief Financial Officer (Principal Financial Officer)
/s/ Robert MucciloJoseph MillerCon EdisonVice President, Controller and Chief Accounting Officer (Principal Accounting Officer)
Robert MucciloJoseph MillerCECONYVice President, Controller and Chief Accounting Officer (Principal Accounting Officer)
/s/ Vincent A. Calarco
Con Edison
CECONY
Director
Trustee
Vincent A. Calarco
/s/ George Campbell Jr.
Con Edison
CECONY
Director
Trustee
George Campbell Jr.
/s/ Ellen V. Futter
Con Edison

CECONY
Director

Trustee
Ellen V. Futter
/s/ John F. Killian
Con Edison

CECONY
Director

Trustee
John F. Killian
/s/ Karol V. MasonCon Edison
CECONY		Director
Trustee
Karol V. Mason
/s/ Dwight A. McBrideCon Edison
CECONY		Director
Trustee
Dwight A. McBride
/s/ William J. Mulrow
Con Edison

CECONY
Director

Trustee
William J. Mulrow

/s/ Armando J. Olivera
Con Edison

CECONY
Director

Trustee
Armando J. Olivera
/s/ Michael W. Ranger
Con Edison

CECONY
Director

Trustee
Michael W. Ranger
/s/ Linda S. Sanford
Con Edison

CECONY
Director

Trustee
Linda S. Sanford
/s/ Deirdre Stanley
Con Edison

CECONY
Director

Trustee
Deirdre Stanley

/s/ L. Frederick Sutherland
Con Edison

CECONY
Director

Trustee
L. Frederick Sutherland
/s/ Catherine ZoiCon Edison
CECONY		Director
Trustee
Catherine Zoi



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CON EDISON ANNUAL REPORT 20171732023