Glossary of Terms

The following is a glossary of abbreviations or acronyms that are used in the Companies’ SEC reports:



Con Edison Companies
Con Edison			Consolidated Edison, Inc.
CECONY			Consolidated Edison Company of New York, Inc.
Clean Energy Businesses			Con Edison Clean Energy Businesses, Inc., together with its subsidiaries
~~Con Edison Development~~		~~Consolidated Edison Development, Inc.~~
~~Con Edison Energy~~	~~Consolidated Edison Energy, Inc.~~
~~Con Edison Solutions~~	~~Consolidated Edison Solutions, Inc.~~
Con Edison Transmission		Con Edison Transmission, Inc., together with its subsidiaries
CET Electric			Consolidated Edison Transmission, LLC
CET Gas			Con Edison Gas Pipeline and Storage, LLC
O&R			Orange and Rockland Utilities, Inc.
RECO			Rockland Electric Company
The Companies			Con Edison and CECONY
The Utilities			CECONY and O&R

Regulatory Agencies, Government Agencies and Other Organizations
CPUC			California Public Utilities Commission
EPA			U.S. Environmental Protection Agency
FASB			Financial Accounting Standards Board
FERC			Federal Energy Regulatory Commission
IASB			International Accounting Standards Board
IRS			Internal Revenue Service
~~NJBPU~~NERC			North American Electric Reliability Corporation
NJBPU			New Jersey Board of Public Utilities
NJDEP			New Jersey Department of Environmental Protection
NYISO			New York Independent System Operator
NYPA			New York Power Authority
NYSDEC			New York State Department of Environmental Conservation
~~NYSERDA~~NYSDPS			New York State Department of Public Service
NYSERDA			New York State Energy Research and Development Authority
NYSPSC			New York State Public Service Commission
NYSRC			New York State Reliability Council, LLC
~~PJM~~PHMSA			U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration
PJM			PJM Interconnection LLC
SEC			U.S. Securities and Exchange Commission

Accounting
AFUDC			Allowance for funds used during construction
ASU			Accounting Standards Update
GAAP			Generally Accepted Accounting Principles in the United States of America
HLBV			Hypothetical liquidation at book value
~~OCI~~NOL			Net Operating Loss
OCI			Other Comprehensive Income
VIE			Variable Interest Entity

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Environmental
CO2						Carbon dioxide
GHG						Greenhouse gases
MGP Sites						Manufactured gas plant sites
PCBs						Polychlorinated biphenyls
PRP						Potentially responsible party
RGGI						Regional Greenhouse Gas Initiative
Superfund						Federal Comprehensive Environmental Response, Compensation and Liability Act of 1980 and similar state statutes

Units of Measure
AC						Alternating current
Bcf						Billion cubic feet
Dt						Dekatherms
kV						Kilovolt
kWh						Kilowatt-hour
MDt						Thousand dekatherms
MMlb						Million pounds
MVA						Megavolt ampere
MW						Megawatt or thousand kilowatts
MWh						Megawatt hour

Other
AMI						Advanced metering infrastructure
~~COSO~~CARES Act						Coronavirus Aid, Relief, and Economic Security Act, as enacted on March 27, 2020
COSO						Committee of Sponsoring Organizations of the Treadway Commission
~~DER~~COVID-19						Coronavirus Disease 2019
DER						Distributed energy resources
Fitch						Fitch Ratings
First Quarter Form 10-Q						The Companies' combined Quarterly Report on Form 10-Q for the quarterly period ended March 31 of the current year
Second Quarter Form 10-Q						The Companies' combined Quarterly Report on Form 10-Q for the quarterly period ended June 30 of the current year
Third Quarter Form 10-Q						The Companies' combined Quarterly Report on Form 10-Q for the quarterly period ended September 30 of the current year
Form 10-K						The Companies’ combined Annual Report on Form 10-K for the year ended December 31, ~~2018~~2019
LTIP						Long Term Incentive Plan
Moody’s						Moody’s Investors Service, Inc.
REV						Reforming the Energy Vision
S&P						S&P Global Ratings
TCJA						The federal Tax Cuts and Jobs Act of 2017, as enacted on December 22, 2017
VaR						Value-at-Risk

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TABLE OF CONTENTS



		PAGE
PART I—Financial Information
ITEM 1	Financial Statements (Unaudited)
	Con Edison
	Consolidated Income Statement	7
	Consolidated Statement of Comprehensive Income	8
	Consolidated Statement of Cash Flows	9
	Consolidated Balance Sheet	10
	Consolidated Statement of Equity	12
	CECONY
	Consolidated Income Statement	1314
	Consolidated Statement of Comprehensive Income	1415
	Consolidated Statement of Cash Flows	1516
	Consolidated Balance Sheet	1617
	Consolidated Statement of Shareholder’s Equity	1819
	Notes to the Financial Statements (Unaudited)	1920
ITEM 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	4850
ITEM 3	Quantitative and Qualitative Disclosures About Market Risk	8488
ITEM 4	Controls and Procedures	8488
PART II—Other Information		8589
ITEM 1	Legal Proceedings	8589
ITEM 1A	Risk Factors	8589
ITEM 6	Exhibits	8589
	Signatures	8691

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FORWARD-LOOKING STATEMENTS

This report includes forward-looking statements 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” and similar expressions identify forward-looking statements. Forward-looking statements ~~are based on~~reflect information available and assumptions at the time the statements are made, and accordingly speak only as of that time. Actual results or developments might differ materially from those included in the forward-looking statements because of various factors including, but not limited to:


��	~~the Companies are extensively regulated and are subject to penalties;~~

•the Companies are extensively regulated and are subject to penalties;

•the Utilities’ rate plans may not provide a reasonable return;

•the Companies may be adversely affected by changes to the Utilities’ rate plans;

~~the intentional misconduct of employees or contractors could adversely affect the Companies;~~

•the failure of, or damage to, the Companies’ facilities could adversely affect the Companies;

•a cyber attack could adversely affect the Companies;

•the failure of processes and systems and the performance of employees and contractors could adversely affect the Companies;

•the Companies are exposed to risks from the environmental consequences of their ~~operations;~~operations, including increased costs related to climate change;

•a disruption in the wholesale energy markets or failure by an energy supplier or customer could adversely affect the Companies;

•the Companies have substantial unfunded pension and other postretirement benefit liabilities;

•Con Edison’s ability to pay dividends or interest depends on dividends from its subsidiaries;

•the Companies require access to capital markets to satisfy funding requirements;

•changes to tax laws could adversely affect the Companies;

•the Companies’ strategies may not be effective to address changes in the external business environment;

•the Companies face risks related to health epidemics and other outbreaks, including the COVID-19 pandemic; and

•the Companies also face other risks that are beyond their control.

The Companies assume no obligation to update or revise any forward-looking ~~statements.~~statements, whether as a result of new information, future events or otherwise.

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Consolidated Edison, Inc.

CONSOLIDATED INCOME STATEMENT (UNAUDITED)


	For the Three Months Ended September 30,		For the Nine Months Ended September 30,			For the Three Months Ended September 30,		For the Nine Months Ended September 30,
(Millions of Dollars/Except Share Data)	2019	2018	2019	2018	(Millions of Dollars/Except Share Data)	2020	2019	2020	2019
OPERATING REVENUES					OPERATING REVENUES
Electric	$2,753	$2,783	$6,665	$6,611	Electric	$2,770	$2,753	$6,660	$6,665
Gas	306	298	1,790	1,726	Gas	289	306	1,673	1,790
Steam	58	64	469	474	Steam	51	58	385	469
Non-utility	248	183	699	577	Non-utility	223	248	568	699
TOTAL OPERATING REVENUES	3,365	3,328	9,623	9,388	TOTAL OPERATING REVENUES	3,333	3,365	9,286	9,623
OPERATING EXPENSES					OPERATING EXPENSES
Purchased power	483	545	1,203	1,287	Purchased power	503	483	1,192	1,203
Fuel	31	39	163	201	Fuel	24	31	124	163
Gas purchased for resale	98	164	671	736	Gas purchased for resale	55	98	364	671
Other operations and maintenance	847	797	2,422	2,389	Other operations and maintenance	736	847	2,116	2,422
Depreciation and amortization	421	360	1,253	1,061	Depreciation and amortization	482	421	1,428	1,253
Taxes, other than income taxes	618	597	1,800	1,707	Taxes, other than income taxes	673	618	1,915	1,800
TOTAL OPERATING EXPENSES	2,498	2,502	7,512	7,381	TOTAL OPERATING EXPENSES	2,473	2,498	7,139	7,512

OPERATING INCOME	867	826	2,111	2,007	OPERATING INCOME	860	867	2,147	2,111
OTHER INCOME (DEDUCTIONS)					OTHER INCOME (DEDUCTIONS)
Investment income	25	39	70	96	Investment income	27	25	78	70
Other income	10	7	26	18	Other income	8	10	15	26
Allowance for equity funds used during construction	4	4	11	11	Allowance for equity funds used during construction	2	4	12	11
Other deductions	(25)	(61)	(76)	(154)	Other deductions	(50)	(25)	(177)	(76)
TOTAL OTHER INCOME (DEDUCTIONS)	14	(11)	31	(29)	TOTAL OTHER INCOME (DEDUCTIONS)	(13)	14	(72)	31
INCOME BEFORE INTEREST AND INCOME TAX EXPENSE	881	815	2,142	1,978	INCOME BEFORE INTEREST AND INCOME TAX EXPENSE	847	881	2,075	2,142
INTEREST EXPENSE					INTEREST EXPENSE
Interest on long-term debt	220	195	660	576	Interest on long-term debt	227	220	685	660
Other interest	45	13	122	28	Other interest	4	45	122
Allowance for borrowed funds used during construction	(3)	(3)	(10)	(7)	Allowance for borrowed funds used during construction	(5)	(3)	(10)
NET INTEREST EXPENSE	262	205	772	597	NET INTEREST EXPENSE	226	262	797	772
INCOME BEFORE INCOME TAX EXPENSE	619	610	1,370	1,381	INCOME BEFORE INCOME TAX EXPENSE	621	619	1,278	1,370
INCOME TAX EXPENSE	116	175	243	330	INCOME TAX EXPENSE	119	116	183	243
NET INCOME	$503	$435	$1,127	$1,051	NET INCOME	$502	$503	$1,095	$1,127
Income attributable to non-controlling interest	30	—	79	—	Income attributable to non-controlling interest	9	30	37	79
NET INCOME FOR COMMON STOCK	$473	$435	$1,048	$1,051	NET INCOME FOR COMMON STOCK	$493	$473	$1,058	$1,048
Net income per common share—basic	$1.42	$1.40	$3.20	$3.38	Net income per common share—basic	$1.47	$1.42	$3.17	$3.20
Net income per common share—diluted	$1.42	$1.39	$3.19	$3.37	Net income per common share—diluted	$1.47	$1.42	$3.16	$3.19
AVERAGE NUMBER OF SHARES OUTSTANDING—BASIC (IN MILLIONS)	332.2	311.1	327.3	310.8	AVERAGE NUMBER OF SHARES OUTSTANDING—BASIC (IN MILLIONS)	334.5	332.2	334.1	327.3
AVERAGE NUMBER OF SHARES OUTSTANDING—DILUTED (IN MILLIONS)	333.2	312.3	328.3	311.9	AVERAGE NUMBER OF SHARES OUTSTANDING—DILUTED (IN MILLIONS)	335.4	333.2	335.0	328.3

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

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Consolidated Edison, Inc.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)


	Three Months Ended September 30,		Nine Months Ended September 30,			Three Months Ended September 30,		Nine Months Ended September 30,
(Millions of Dollars)	2019	2018	2019	2018	(Millions of Dollars)	2020	2019	2020	2019
NET INCOME	$503	$435	$1,127	$1,051	NET INCOME	$502	$503	$1,095	$1,127
INCOME ATTRIBUTABLE TO NON-CONTROLLING INTEREST	(30)	—	(79)	—	INCOME ATTRIBUTABLE TO NON-CONTROLLING INTEREST	(9)	(30)	(37)	(79)
OTHER COMPREHENSIVE INCOME, NET OF TAXES					OTHER COMPREHENSIVE INCOME, NET OF TAXES
Pension and other postretirement benefit plan liability adjustments, net of taxes	1	2	6	8	Pension and other postretirement benefit plan liability adjustments, net of taxes	2	1	7	6
TOTAL OTHER COMPREHENSIVE INCOME, NET OF TAXES	1	2	6	8	TOTAL OTHER COMPREHENSIVE INCOME, NET OF TAXES	2	1	7	6
COMPREHENSIVE INCOME	$474	$437	$1,054	$1,059	COMPREHENSIVE INCOME	$495	$474	$1,065	$1,054

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

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Consolidated Edison, Inc.

CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)


	For the Nine Months Ended September 30,
(Millions of Dollars)	2020	2019
OPERATING ACTIVITIES
Net income	$1,095	$1,127
PRINCIPAL NON-CASH CHARGES/(CREDITS) TO INCOME
Depreciation and amortization	1,428	1,253
Deferred income taxes	184	257
Rate case amortization and accruals	(30)	(88)
Common equity component of allowance for funds used during construction	(12)	(11)
Net derivative losses	80	55
Unbilled revenue and net unbilled revenue deferrals	29	29
Gain on sale of assets	0	(5)

Other non-cash items, net	91	(25)
CHANGES IN ASSETS AND LIABILITIES
Accounts receivable – customers	(322)	8
Materials and supplies, including fuel oil and gas in storage	(1)	0
Revenue decoupling mechanism receivable	(52)	(91)
Other receivables and other current assets	(32)	103
Taxes receivable	(6)	39
Prepayments	(517)	(520)
Accounts payable	19	(67)
Pensions and retiree benefits obligations, net	181	253
Pensions and retiree benefits contributions	(474)	(353)
Accrued taxes	13	(27)
Accrued interest	102	95
Superfund and environmental remediation costs, net	(8)	(8)
Distributions from equity investments	29	46
System benefit charge	(56)	9
Deferred charges, noncurrent assets and other regulatory assets	(443)	(238)
Deferred credits and other regulatory liabilities	35	144
Other current and noncurrent liabilities	35	(25)
NET CASH FLOWS FROM OPERATING ACTIVITIES	1,368	1,960
INVESTING ACTIVITIES
Utility construction expenditures	(2,346)	(2,428)
Cost of removal less salvage	(216)	(219)
Non-utility construction expenditures	(414)	(143)
Investments in electric and gas transmission projects	(24)	(159)

Proceeds from sale of assets	0	48
Other investing activities	16	17
NET CASH FLOWS USED IN INVESTING ACTIVITIES	(2,984)	(2,884)
FINANCING ACTIVITIES
Net issuance/(payment) of short-term debt	137	(1,266)
Issuance of long-term debt	1,675	1,989
Retirement of long-term debt	(463)	(702)
Debt issuance costs	(25)	(15)
Common stock dividends	(731)	(690)
Issuance of common shares - public offering	88	825
Issuance of common shares for stock plans	43	40
Distribution to noncontrolling interest	(11)	(10)

NET CASH FLOWS FROM FINANCING ACTIVITIES	713	171
CASH, TEMPORARY CASH INVESTMENTS, AND RESTRICTED CASH:
NET CHANGE FOR THE PERIOD	(903)	(753)
BALANCE AT BEGINNING OF PERIOD	1,217	1,006
BALANCE AT END OF PERIOD	$314	$253


SUPPLEMENTAL DISCLOSURE OF CASH INFORMATION
Cash paid/(received) during the period for:
Interest	$583	$576
Income taxes	$31	$(28)
SUPPLEMENTAL DISCLOSURE OF NON-CASH INFORMATION
Construction expenditures in accounts payable	$432	$328
Issuance of common shares for dividend reinvestment	$36	$36
Software licenses acquired but unpaid as of end of period	$51	$80
Equipment acquired but unpaid as of end of period	$28	$33

For the Nine Months Ended September 30,
(Millions of Dollars) 2019
2018
OPERATING ACTIVITIES
Net income $1,127 $1,051
PRINCIPAL NON-CASH CHARGES/(CREDITS) TO INCOME
Depreciation and amortization 1,253 1,061
Deferred income taxes 257 308
Rate case amortization and accruals (88) (85)
Common equity component of allowance for funds used during construction (11) (11)
Net derivative gains 55 5
Unbilled revenue and net unbilled revenue deferrals 29 135
Gain on sale of assets (5) —
Other non-cash items, net (25) (44)
CHANGES IN ASSETS AND LIABILITIES
Accounts receivable – customers 8 (246)
Materials and supplies, including fuel oil and gas in storage —
(4)
Revenue decoupling mechanism receivable (91) —
Other receivables and other current assets 103 (31)
Taxes receivable 39 47
Prepayments (520) (487)
Accounts payable (67) (8)
Pensions and retiree benefits obligations, net 253 264
Pensions and retiree benefits contributions (353) (475)
Accrued taxes (27) (60)
Accrued interest 95 67
Superfund and environmental remediation costs, net (8) (14)
Distributions from equity investments 46 88
System benefit charge 9 74
Deferred charges, noncurrent assets and other regulatory assets (238) (223)
Deferred credits and other regulatory liabilities 144 382
Other current and noncurrent liabilities (25) (194)
NET CASH FLOWS FROM OPERATING ACTIVITIES 1,960 1,600
INVESTING ACTIVITIES
Utility construction expenditures (2,428) (2,457)
Cost of removal less salvage (219) (188)
Non-utility construction expenditures (143) (193)
Investments in electric and gas transmission projects (159) (123)
Investments in/acquisitions of renewable electric production projects —
(15)
Proceeds from sale of assets 48 —
Other investing activities 17 29
NET CASH FLOWS USED IN INVESTING ACTIVITIES (2,884) (2,947)
FINANCING ACTIVITIES
Net issuance/(payment) of short-term debt (1,266) 775
Issuance of long-term debt 1,989 1,905
Retirement of long-term debt (702) (1,319)
Debt issuance costs (15) (21)
Common stock dividends (690) (631)
Issuance of common shares - public offering 825 —
Issuance of common shares for stock plans 40 39
Distribution to noncontrolling interest (10) —
NET CASH FLOWS FROM FINANCING ACTIVITIES 171 748
CASH, TEMPORARY CASH INVESTMENTS, AND RESTRICTED CASH:
NET CHANGE FOR THE PERIOD (753) (599)
BALANCE AT BEGINNING OF PERIOD 1,006 844
BALANCE AT END OF PERIOD $253 $245
SUPPLEMENTAL DISCLOSURE OF CASH INFORMATION
Cash paid/(received) during the period for:
Interest $576 $519
Income taxes $(28) $(1)
SUPPLEMENTAL DISCLOSURE OF NON-CASH INFORMATION
Construction expenditures in accounts payable $328 $318
Issuance of common shares for dividend reinvestment $36 $36
Software licenses acquired but unpaid as of end of period $80 $100
Equipment acquired but unpaid as of end of period $33 —

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

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Consolidated Edison, Inc.

CONSOLIDATED BALANCE SHEET (UNAUDITED)


(Millions of Dollars)	September 30, 2019	December 31, 2018	(Millions of Dollars)	September 30, 2020	December 31, 2019
ASSETS			ASSETS
CURRENT ASSETS			CURRENT ASSETS
Cash and temporary cash investments	$78	$895	Cash and temporary cash investments	$153	$981
Accounts receivable – customers, less allowance for uncollectible accounts of $67 and $62 in 2019 and 2018, respectively	1,254	1,267
Other receivables, less allowance for uncollectible accounts of $5 in 2019 and 2018	169	285
Accounts receivable – customers, less allowance for uncollectible accounts of $118 and $70 in 2020 and 2019, respectively			Accounts receivable – customers, less allowance for uncollectible accounts of $118 and $70 in 2020 and 2019, respectively	1,510	1,236
Other receivables, less allowance for uncollectible accounts of $6 and $4 in 2020 and 2019, respectively			Other receivables, less allowance for uncollectible accounts of $6 and $4 in 2020 and 2019, respectively	211	184
Taxes receivable	10	49	Taxes receivable	26	20
Accrued unbilled revenue	505	514	Accrued unbilled revenue	511	599
Fuel oil, gas in storage, materials and supplies, at average cost	358	358	Fuel oil, gas in storage, materials and supplies, at average cost	353	352
Prepayments	707	187	Prepayments	777	260
Regulatory assets	83	76	Regulatory assets	166	128
Restricted cash	175	111	Restricted cash	161	236
Revenue decoupling mechanism	91	—
Revenue decoupling mechanism receivable			Revenue decoupling mechanism receivable	128	76
Other current assets	151	122	Other current assets	208	200
TOTAL CURRENT ASSETS	3,581	3,864	TOTAL CURRENT ASSETS	4,204	4,272
INVESTMENTS	1,983	1,766	INVESTMENTS	2,124	2,065
UTILITY PLANT, AT ORIGINAL COST			UTILITY PLANT, AT ORIGINAL COST
Electric	31,584	30,378	Electric	32,978	31,866
Gas	9,879	9,100	Gas	10,583	10,107
Steam	2,594	2,562	Steam	2,638	2,601
General	3,492	3,331	General	3,733	3,562
TOTAL	47,549	45,371	TOTAL	49,932	48,136
Less: Accumulated depreciation	10,329	9,769	Less: Accumulated depreciation	11,017	10,322
Net	37,220	35,602	Net	38,915	37,814
Construction work in progress	1,963	1,978	Construction work in progress	2,211	1,937
NET UTILITY PLANT	39,183	37,580	NET UTILITY PLANT	41,126	39,751
NON-UTILITY PLANT			NON-UTILITY PLANT
Non-utility property, less accumulated depreciation of $357 and $275 in 2019 and 2018, respectively	3,848	4,000
Non-utility property, less accumulated depreciation of $489 and $391 in 2020 and 2019, respectively			Non-utility property, less accumulated depreciation of $489 and $391 in 2020 and 2019, respectively	3,911	3,829
Construction work in progress	203	169	Construction work in progress	527	309
NET PLANT	43,234	41,749	NET PLANT	45,564	43,889
OTHER NONCURRENT ASSETS			OTHER NONCURRENT ASSETS
Goodwill	446	440	Goodwill	446
Intangible assets, less accumulated amortization of $103 and $29 in 2019 and 2018, respectively	1,580	1,654
Intangible assets, less accumulated amortization of $203 and $126 in 2020 and 2019, respectively			Intangible assets, less accumulated amortization of $203 and $126 in 2020 and 2019, respectively	1,485	1,557
Regulatory assets	4,159	4,294	Regulatory assets	4,655	4,859
Operating lease right-of-use asset	834	—	Operating lease right-of-use asset	844	857
Other deferred charges and noncurrent assets	123	153	Other deferred charges and noncurrent assets	273	134
TOTAL OTHER NONCURRENT ASSETS	7,142	6,541	TOTAL OTHER NONCURRENT ASSETS	7,703	7,853
TOTAL ASSETS	$55,940	$53,920	TOTAL ASSETS	$59,595	$58,079

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

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Consolidated Edison, Inc.

CONSOLIDATED BALANCE SHEET (UNAUDITED)


(Millions of Dollars)	September 30, 2019	December 31, 2018	(Millions of Dollars)	September 30, 2020	December 31, 2019
LIABILITIES AND SHAREHOLDERS’ EQUITY			LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES			CURRENT LIABILITIES
Long-term debt due within one year	$1,914	$650	Long-term debt due within one year	$1,965	$1,446
Term loan	—	825	Term loan	820	0
Notes payable	1,300	1,741	Notes payable	1,009	1,692
Accounts payable	1,082	1,187	Accounts payable	1,279	1,164
Customer deposits	348	351	Customer deposits	319	346
Accrued taxes	35	61	Accrued taxes	89	76
Accrued interest	224	129	Accrued interest	255	153
Accrued wages	115	109	Accrued wages	110	102
Fair value of derivative liabilities	72	50	Fair value of derivative liabilities	149	123
Regulatory liabilities	93	114	Regulatory liabilities	90	102
System benefit charge	636	627	System benefit charge	591	647
Operating lease liabilities	59	—	Operating lease liabilities	90	65
Other current liabilities	341	363	Other current liabilities	394	371
TOTAL CURRENT LIABILITIES	6,219	6,207	TOTAL CURRENT LIABILITIES	7,160	6,287
NONCURRENT LIABILITIES			NONCURRENT LIABILITIES
Provision for injuries and damages	139	146	Provision for injuries and damages	173	130
Pensions and retiree benefits	810	1,228	Pensions and retiree benefits	760	1,516
Superfund and other environmental costs	767	779	Superfund and other environmental costs	726	734
Asset retirement obligations	360	450	Asset retirement obligations	441	425
Fair value of derivative liabilities	147	16	Fair value of derivative liabilities	298	105
Deferred income taxes and unamortized investment tax credits	6,136	5,820	Deferred income taxes and unamortized investment tax credits	6,507	6,227
Operating lease liabilities	819	—	Operating lease liabilities	807	809
Regulatory liabilities	4,590	4,641	Regulatory liabilities	4,569	4,827
Other deferred credits and noncurrent liabilities	282	299	Other deferred credits and noncurrent liabilities	237	279
TOTAL NONCURRENT LIABILITIES	14,050	13,379	TOTAL NONCURRENT LIABILITIES	14,518	15,052
LONG-TERM DEBT	17,537	17,495	LONG-TERM DEBT	19,206	18,527
EQUITY			EQUITY
Common shareholders’ equity	17,959	16,726	Common shareholders’ equity	18,494	18,022
Noncontrolling interest	175	113	Noncontrolling interest	217	191
TOTAL EQUITY (See Statement of Equity)	18,134	16,839	TOTAL EQUITY (See Statement of Equity)	18,711	18,213
TOTAL LIABILITIES AND EQUITY	$55,940	$53,920	TOTAL LIABILITIES AND EQUITY	$59,595	$58,079

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

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Consolidated Edison, Inc.

CONSOLIDATED STATEMENT OF EQUITY (UNAUDITED)


(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	Total
	Shares	Amount			Shares	Amount


























BALANCE AS OF DECEMBER 31, 2018	321	$34	$7,117	$10,728	23	$(1,038)	$(99)	$(16)	$113	$16,839
Net income				424					21	445
Common stock dividends ($0.74 per share)				(237)						(237)
Issuance of common shares – public offering	6		433				(8)			425
Issuance of common shares for stock plans			27							27
Other comprehensive income								4		4
Distributions to noncontrolling interest									(2)	(2)
BALANCE AS OF MARCH 31, 2019	327	$34	$7,577	$10,915	23	$(1,038)	$(107)	$(12)	$132	$17,501
Net income				152					27	179
Common stock dividends ($0.74 per share)				(242)						(242)
Issuance of common shares – public offering	5	1	402				(3)			400
Issuance of common shares for stock plans			29							29
Other comprehensive income								1		1
Distributions to noncontrolling interest									(3)	(3)
BALANCE AS OF JUNE 30, 2019	332	$35	$8,008	$10,825	23	$(1,038)	$(110)	$(11)	$156	$17,865
Net income				473					30	503
Common stock dividends ($0.74 per share)				(247)						(247)
Issuance of common shares – public offering										0
Issuance of common shares for stock plans			23							23
Other comprehensive income								1		1

Distributions to noncontrolling interest									(11)	(11)
BALANCE AS OF SEPTEMBER 30, 2019	332	$35	$8,031	$11,051	23	$(1,038)	$(110)	$(10)	$175	$18,134







BALANCE AS OF DECEMBER 31, 2019	333	$35	$8,054	$11,100	23	$(1,038)	$(110)	$(19)	$191	$18,213
Net income				375					17	392
Common stock dividends ($0.76 per share)				(255)						(255)
Issuance of common shares - public offering	1		88							88
Issuance of common shares for stock plans			26							26
Other comprehensive income								5		5
Distributions to noncontrolling interest									(2)	(2)
BALANCE AS OF MARCH 31, 2020	334	$35	$8,168	$11,220	23	$(1,038)	$(110)	$(14)	$206	$18,467
Net income				190					12	202
Common stock dividends ($0.76 per share)				(256)						(256)
Issuance of common shares - public offering										0
Issuance of common shares for stock plans			30							30
Other comprehensive income										0

(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
Total
Shares Amount Shares Amount
BALANCE AS OF DECEMBER 31, 2017 310 $34 $6,298 $10,235 23 $(1,038) $(85) $(26) $7 $15,425
Net income

428

428
Common stock dividends ($0.715 per share)

(221)

(221)
Issuance of common shares for stock plans 1
25

25
Other comprehensive income

4
4
Noncontrolling interest

—
BALANCE AS OF MARCH 31, 2018 311 $34 $6,323 $10,442 23 $(1,038) $(85) $(22) $7 $15,661
Net income

188

188
Common stock dividends ($0.715 per share)

(223)

(223)
Issuance of common shares for stock plans

27

27
Other comprehensive income

2
2
Noncontrolling interest

—
BALANCE AS OF JUNE 30, 2018 311 $34 $6,350 $10,407 23 $(1,038) $(85) $(20) $7 $15,655
Net income

435

435
Common stock dividends ($0.715 per share)

(223)

(223)
Issuance of common shares for stock plans

25

25
Other comprehensive income

2
2
Noncontrolling interest

4 4
BALANCE AS OF SEPTEMBER 30, 2018 311 $34 $6,375 $10,619 23 $(1,038) $(85) $(18) $11 $15,898
Net income

331

331
Common stock dividends ($0.715 per share)

(222)

(222)
Issuance of common shares - public offering 10

719

(14)

705
Issuance of common shares for stock plans

23

23
Other comprehensive income

2
2
Noncontrolling interest

102 102
BALANCE AS OF DECEMBER 31, 2018 321 $34 $7,117 $10,728 23 $(1,038) $(99) $(16) $113 $16,839
Net income

424

21 445
Common stock dividends ($0.74 per share)

(237)

(237)
Issuance of common shares – public offering 6
433

(8)

425
Issuance of common shares for stock plans

27

27
Other comprehensive income

4
4
Distributions to noncontrolling interest

(2) (2)
BALANCE AS OF MARCH 31, 2019 327 $34 $7,577 $10,915 23 $(1,038) $(107) $(12) $132 $17,501
Net income

152

27 179
Common stock dividends ($0.74 per share)

(242)

(242)
Issuance of common shares – public offering 5 1 402

(3)

400
Issuance of common shares for stock plans

29

29
Other comprehensive income

1
1
Distributions to noncontrolling interest

(3) (3)
BALANCE AS OF JUNE 30, 2019 332 $35 $8,008 $10,825 23 $(1,038) $(110) $(11) $156 $17,865
Net income

473

30 503
Common stock dividends ($0.74 per share)

(247)

(247)
Issuance of common shares for stock plans

23

23
Other comprehensive income

1
1
Distributions to noncontrolling interest

(11) (11)
BALANCE AS OF SEPTEMBER 30, 2019 332 $35 $8,031 $11,051 23 $(1,038) $(110) $(10) $175 $18,134


Distributions to noncontrolling interest									(2)	(2)
BALANCE AS OF JUNE 30, 2020	334	$35	$8,198	$11,154	23	$(1,038)	$(110)	$(14)	$216	$18,441
Net income				493					9	502
Common stock dividends ($0.76 per share)				(256)						(256)
Issuance of common shares - public offering										0
Issuance of common shares for stock plans			30							30
Other comprehensive income								2		2
Distributions to noncontrolling interest									(8)	(8)
BALANCE AS OF SEPTEMBER 30, 2020	334	$35	$8,228	$11,391	23	$(1,038)	$(110)	$(12)	$217	$18,711

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

1213

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Consolidated Edison Company of New York, Inc.

CONSOLIDATED INCOME STATEMENT (UNAUDITED)


	For the Three Months Ended September 30,		For the Nine Months Ended September 30,			For the Three Months Ended September 30,		For the Nine Months Ended September 30,
(Millions of Dollars)	2019	2018	2019	2018	(Millions of Dollars)	2020	2019	2020	2019
OPERATING REVENUES					OPERATING REVENUES
Electric	$2,544	$2,571	$6,174	$6,107	Electric	$2,562	$2,544	$6,178	$6,174
Gas	275	264	1,605	1,540	Gas	259	275	1,509	1,605
Steam	58	64	469	474	Steam	51	58	385	469
TOTAL OPERATING REVENUES	2,877	2,899	8,248	8,121	TOTAL OPERATING REVENUES	2,872	2,877	8,072	8,248
OPERATING EXPENSES					OPERATING EXPENSES
Purchased power	423	472	1,058	1,117	Purchased power	447	423	1,065	1,058
Fuel	31	39	163	201	Fuel	24	31	124	163
Gas purchased for resale	52	66	445	457	Gas purchased for resale	38	52	298	445
Other operations and maintenance	712	666	2,022	1,926	Other operations and maintenance	597	712	1,714	2,022
Depreciation and amortization	346	322	1,020	949	Depreciation and amortization	401	346	1,187	1,020
Taxes, other than income taxes	590	570	1,715	1,621	Taxes, other than income taxes	643	590	1,830	1,715
TOTAL OPERATING EXPENSES	2,154	2,135	6,423	6,271	TOTAL OPERATING EXPENSES	2,150	2,154	6,218	6,423
OPERATING INCOME	723	764	1,825	1,850	OPERATING INCOME	722	723	1,854	1,825
OTHER INCOME (DEDUCTIONS)					OTHER INCOME (DEDUCTIONS)
Investment and other income	10	6	23	14	Investment and other income	6	10	11	23
Allowance for equity funds used during construction	3	4	9	10	Allowance for equity funds used during construction	1	3	10	9
Other deductions	(22)	(43)	(63)	(123)	Other deductions	(45)	(22)	(159)	(63)
TOTAL OTHER INCOME (DEDUCTIONS)	(9)	(33)	(31)	(99)	TOTAL OTHER INCOME (DEDUCTIONS)	(38)	(9)	(138)	(31)
INCOME BEFORE INTEREST AND INCOME TAX EXPENSE	714	731	1,794	1,751	INCOME BEFORE INTEREST AND INCOME TAX EXPENSE	684	714	1,716	1,794
INTEREST EXPENSE					INTEREST EXPENSE
Interest on long-term debt	168	167	501	492	Interest on long-term debt	179	168	537	501
Other interest	16	10	52	23	Other interest	7	16	26	52
Allowance for borrowed funds used during construction	(3)	(2)	(8)	(7)	Allowance for borrowed funds used during construction	(4)	(3)	(9)	(8)
NET INTEREST EXPENSE	181	175	545	508	NET INTEREST EXPENSE	182	181	554	545
INCOME BEFORE INCOME TAX EXPENSE	533	556	1,249	1,243	INCOME BEFORE INCOME TAX EXPENSE	502	533	1,162	1,249
INCOME TAX EXPENSE	119	125	271	274	INCOME TAX EXPENSE	97	119	199	271
NET INCOME	$414	$431	$978	$969	NET INCOME	$405	$414	$963	$978

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

1314

~~Table of Contents~~

Consolidated Edison Company of New York, Inc.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)


	Three Months Ended September 30,		Nine Months Ended September 30,			Three Months Ended September 30,		Nine Months Ended September 30,
(Millions of Dollars)	2019	2018	2019	2018	(Millions of Dollars)	2020	2019	2020	2019
NET INCOME	$414	$431	$978	$969	NET INCOME	$405	$414	$963	$978

Pension and other postretirement benefit plan liability adjustments, net of taxes	1	—	1		Pension and other postretirement benefit plan liability adjustments, net of taxes	0	1	2	1
TOTAL OTHER COMPREHENSIVE INCOME, NET OF TAXES	1	—	1		TOTAL OTHER COMPREHENSIVE INCOME, NET OF TAXES	0	1	2	1
COMPREHENSIVE INCOME	$415	$431	$979	$970	COMPREHENSIVE INCOME	$405	$415	$965	$979

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

1415

~~Table of Contents~~

Consolidated Edison Company of New York, Inc.

CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)


	For the Nine Months Ended September 30,			For the Nine Months Ended September 30,
(Millions of Dollars)	2019	2018	(Millions of Dollars)	2020	2019
OPERATING ACTIVITIES			OPERATING ACTIVITIES
Net income	$978	$969	Net income	$963	$978
PRINCIPAL NON-CASH CHARGES/(CREDITS) TO INCOME			PRINCIPAL NON-CASH CHARGES/(CREDITS) TO INCOME
Depreciation and amortization	1,020	949	Depreciation and amortization	1,187	1,020
Deferred income taxes	244	346	Deferred income taxes	201	244
Rate case amortization and accruals	(87)	(98)	Rate case amortization and accruals	(30)	(87)
Common equity component of allowance for funds used during construction	(9)	(10)	Common equity component of allowance for funds used during construction	(10)	(9)
Unbilled revenue and net unbilled revenue deferrals	38	43	Unbilled revenue and net unbilled revenue deferrals	0	38
Gain on sale of assets	(5)	—	Gain on sale of assets	0	(5)
Other non-cash items, net	(19)	(20)	Other non-cash items, net	36	(19)
CHANGES IN ASSETS AND LIABILITIES			CHANGES IN ASSETS AND LIABILITIES
Accounts receivable – customers	(2)	(218)	Accounts receivable – customers	(289)	(2)
Materials and supplies, including fuel oil and gas in storage	9	(3)	Materials and supplies, including fuel oil and gas in storage	6	9
Revenue decoupling mechanism	(91)	—	Revenue decoupling mechanism	(45)	(91)
Other receivables and other current assets	107	(47)	Other receivables and other current assets	3	107
Accounts receivable from affiliated companies	14	(267)	Accounts receivable from affiliated companies	(83)	14
Prepayments	(499)	(448)	Prepayments	(481)	(499)
Accounts payable	(92)	(32)	Accounts payable	29	(92)
Accounts payable to affiliated companies	(4)	8	Accounts payable to affiliated companies	1	(4)
Pensions and retiree benefits obligations, net	237	242	Pensions and retiree benefits obligations, net	169	237
Pensions and retiree benefits contributions	(322)	(436)	Pensions and retiree benefits contributions	(434)	(322)
Superfund and environmental remediation costs, net	(10)	(14)	Superfund and environmental remediation costs, net	(14)	(10)
Accrued taxes	(23)	(63)	Accrued taxes	10	(23)
Accrued taxes to affiliated companies	—	(72)	Accrued taxes to affiliated companies	3	0
Accrued interest	68	67	Accrued interest	97	68
System benefit charge	9	70	System benefit charge	(53)	9
Deferred charges, noncurrent assets and other regulatory assets	(248)	(158)	Deferred charges, noncurrent assets and other regulatory assets	(420)	(248)
Deferred credits and other regulatory liabilities	184	376	Deferred credits and other regulatory liabilities	112	184
Other current and noncurrent liabilities	(7)	(99)	Other current and noncurrent liabilities	1	(7)
NET CASH FLOWS FROM OPERATING ACTIVITIES	1,490	1,085	NET CASH FLOWS FROM OPERATING ACTIVITIES	959	1,490
INVESTING ACTIVITIES			INVESTING ACTIVITIES
Utility construction expenditures	(2,271)	(2,315)	Utility construction expenditures	(2,200)	(2,271)
Cost of removal less salvage	(214)	(183)	Cost of removal less salvage	(212)	(214)
Proceeds from sale of assets	48	—	Proceeds from sale of assets	0	48

NET CASH FLOWS USED IN INVESTING ACTIVITIES	(2,437)	(2,498)	NET CASH FLOWS USED IN INVESTING ACTIVITIES	(2,412)	(2,437)
FINANCING ACTIVITIES			FINANCING ACTIVITIES
Net issuance/(payment) of short-term debt	(262)	854
Net payment of short-term debt			Net payment of short-term debt	(146)	(262)
Issuance of long-term debt	700	1,640	Issuance of long-term debt	1,600	700
Retirement of long-term debt	(475)	(1,236)	Retirement of long-term debt	(350)	(475)
Debt issuance costs	(9)	(18)	Debt issuance costs	(24)	(9)
Capital contribution by parent	875	95	Capital contribution by parent	200	875
Dividend to parent	(685)	(635)	Dividend to parent	(737)	(685)
NET CASH FLOWS FROM FINANCING ACTIVITIES	144	700	NET CASH FLOWS FROM FINANCING ACTIVITIES	543	144
CASH, TEMPORARY CASH INVESTMENTS, AND RESTRICTED CASH:
CASH AND TEMPORARY CASH INVESTMENTS			CASH AND TEMPORARY CASH INVESTMENTS
NET CHANGE FOR THE PERIOD	(803)	(713)	NET CHANGE FOR THE PERIOD	(910)	(803)
BALANCE AT BEGINNING OF PERIOD	818	730	BALANCE AT BEGINNING OF PERIOD	933	818
BALANCE AT END OF PERIOD	$15	$17	BALANCE AT END OF PERIOD	$23	$15
SUPPLEMENTAL DISCLOSURE OF CASH INFORMATION			SUPPLEMENTAL DISCLOSURE OF CASH INFORMATION
Cash paid/(received) during the period for:			Cash paid/(received) during the period for:
Interest	$439	$424	Interest	$430	$439
Income taxes	$13	$268	Income taxes	$78	$13
SUPPLEMENTAL DISCLOSURE OF NON-CASH INFORMATION			SUPPLEMENTAL DISCLOSURE OF NON-CASH INFORMATION
Construction expenditures in accounts payable	$295	$279	Construction expenditures in accounts payable	$340	$295
Software licenses acquired but unpaid as of end of period	$76	$95	Software licenses acquired but unpaid as of end of period	$48	$76
Equipment acquired but unpaid as of end of period	$33	—	Equipment acquired but unpaid as of end of period	$28	$33

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

~~Table of Contents~~

Consolidated Edison Company of New York, Inc.

CONSOLIDATED BALANCE SHEET (UNAUDITED)


(Millions of Dollars)	September 30, 2019	December 31, 2018	(Millions of Dollars)	September 30, 2020	December 31, 2019
ASSETS			ASSETS
CURRENT ASSETS			CURRENT ASSETS
Cash and temporary cash investments	$15	$818	Cash and temporary cash investments	$23	$933
Accounts receivable – customers, less allowance for uncollectible accounts of $62 and $57 in 2019 and 2018, respectively	1,160	1,163
Other receivables, less allowance for uncollectible accounts of $3 in 2019 and 2018	104	211
Accounts receivable – customers, less allowance for uncollectible accounts of $110 and $65 in 2020 and 2019, respectively			Accounts receivable – customers, less allowance for uncollectible accounts of $110 and $65 in 2020 and 2019, respectively	1,397	1,153
Other receivables, less allowance for uncollectible accounts of $4 and $3 in 2020 and 2019, respectively			Other receivables, less allowance for uncollectible accounts of $4 and $3 in 2020 and 2019, respectively	118	120
Taxes receivable	—	5	Taxes receivable	3	0
Accrued unbilled revenue	374	392	Accrued unbilled revenue	418	477
Accounts receivable from affiliated companies	200	214	Accounts receivable from affiliated companies	156	73
Fuel oil, gas in storage, materials and supplies, at average cost	295	304	Fuel oil, gas in storage, materials and supplies, at average cost	287	293
Prepayments	616	117	Prepayments	659	178
Regulatory assets	69	64	Regulatory assets	144	113

Revenue decoupling mechanism receivable	91	—	Revenue decoupling mechanism receivable	121	76
Other current assets	81	69	Other current assets	121	127
TOTAL CURRENT ASSETS	3,005	3,357	TOTAL CURRENT ASSETS	3,447	3,543
INVESTMENTS	436	385	INVESTMENTS	505	461
UTILITY PLANT, AT ORIGINAL COST			UTILITY PLANT, AT ORIGINAL COST
Electric	29,736	28,595	Electric	31,019	29,989
Gas	9,012	8,295	Gas	9,676	9,229
Steam	2,594	2,562	Steam	2,638	2,601
General	3,201	3,056	General	3,441	3,271
TOTAL	44,543	42,508	TOTAL	46,774	45,090
Less: Accumulated depreciation	9,504	8,988	Less: Accumulated depreciation	10,139	9,490
Net	35,039	33,520	Net	36,635	35,600
Construction work in progress	1,843	1,850	Construction work in progress	2,079	1,812
NET UTILITY PLANT	36,882	35,370	NET UTILITY PLANT	38,714	37,412
NON-UTILITY PROPERTY			NON-UTILITY PROPERTY
Non-utility property, less accumulated depreciation of $25 in 2019 and 2018	3	4
Non-utility property, less accumulated depreciation of $25 in 2020 and 2019			Non-utility property, less accumulated depreciation of $25 in 2020 and 2019	2
NET PLANT	36,885	35,374	NET PLANT	38,716	37,414
OTHER NONCURRENT ASSETS			OTHER NONCURRENT ASSETS
Regulatory assets	3,831	3,923	Regulatory assets	4,278	4,487
Operating lease right-of-use asset	610	—	Operating lease right-of-use asset	584	601
Other deferred charges and noncurrent assets	41	69	Other deferred charges and noncurrent assets	138	51
TOTAL OTHER NONCURRENT ASSETS	4,482	3,992	TOTAL OTHER NONCURRENT ASSETS	5,000	5,139
TOTAL ASSETS	$44,808	$43,108	TOTAL ASSETS	$47,668	$46,557

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

1617

~~Table of Contents~~

Consolidated Edison Company of New York, Inc.

CONSOLIDATED BALANCE SHEET (UNAUDITED)


(Millions of Dollars)	September 30, 2019	December 31, 2018	(Millions of Dollars)	September 30, 2020	December 31, 2019
LIABILITIES AND SHAREHOLDER’S EQUITY			LIABILITIES AND SHAREHOLDER’S EQUITY
CURRENT LIABILITIES			CURRENT LIABILITIES

Long-term debt due within one year	$350	$475	Long-term debt due within one year	$640	$350
Notes payable	930	1,192	Notes payable	991	1,137
Accounts payable	883	977	Accounts payable	1,040	956
Accounts payable to affiliated companies	13	17	Accounts payable to affiliated companies	14	13
Customer deposits	335	339	Customer deposits	304	334
Accrued taxes	33	55	Accrued taxes	81	71
Accrued taxes to affiliated companies			Accrued taxes to affiliated companies	3	0
Accrued interest	180	112	Accrued interest	210	113
Accrued wages	104	99	Accrued wages	99	92
Fair value of derivative liabilities	33	25	Fair value of derivative liabilities	86	81
Regulatory liabilities	56	73	Regulatory liabilities	62	63
System benefit charge	578	569	System benefit charge	534	587
Operating lease liabilities	49	—	Operating lease liabilities	69	54
Other current liabilities	269	267	Other current liabilities	274	280
TOTAL CURRENT LIABILITIES	3,813	4,200	TOTAL CURRENT LIABILITIES	4,407	4,131
NONCURRENT LIABILITIES			NONCURRENT LIABILITIES
Provision for injuries and damages	135	141	Provision for injuries and damages	165	125
Pensions and retiree benefits	577	952	Pensions and retiree benefits	551	1,241
Superfund and other environmental costs	684	693	Superfund and other environmental costs	647	654
Asset retirement obligations	301	292	Asset retirement obligations	372	362
Fair value of derivative liabilities	82	6	Fair value of derivative liabilities	134	65
Deferred income taxes and unamortized investment tax credits	6,082	5,739	Deferred income taxes and unamortized investment tax credits	6,374	6,000
Operating lease liabilities	595	—	Operating lease liabilities	554	551
Regulatory liabilities	4,200	4,258	Regulatory liabilities	4,134	4,427
Other deferred credits and noncurrent liabilities	236	241	Other deferred credits and noncurrent liabilities	198	240
TOTAL NONCURRENT LIABILITIES	12,892	12,322	TOTAL NONCURRENT LIABILITIES	13,129	13,665
LONG-TERM DEBT	14,024	13,676	LONG-TERM DEBT	15,557	14,614
SHAREHOLDER’S EQUITY (See Statement of Shareholder’s Equity)	14,079	12,910	SHAREHOLDER’S EQUITY (See Statement of Shareholder’s Equity)	14,575	14,147
TOTAL LIABILITIES AND SHAREHOLDER’S EQUITY	$44,808	$43,108	TOTAL LIABILITIES AND SHAREHOLDER’S EQUITY	$47,668	$46,557

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

~~Table of Contents~~

Consolidated Edison Company of New York, Inc.

CONSOLIDATED STATEMENT OF SHAREHOLDER’S EQUITY (UNAUDITED)


										Common Stock		Additional Paid-In Capital	Retained Earnings	Repurchased Con Edison Stock	Capital Stock Expense	Accumulated Other Comprehensive Income/(Loss)	Total
(In Millions									(In Millions	Shares	Amount

	Common Stock		Additional Paid-In Capital	Retained Earnings	Repurchased Con Edison Stock	Capital Stock Expense	Accumulated Other Comprehensive Income/(Loss)	Total
(In Millions, except for dividends per share)	Shares	Amount
BALANCE AS OF DECEMBER 31, 2017	235	$589	$4,649	$8,231	$(962)	$(62)	$(6)	$12,439
Net income				389				389
Common stock dividend to parent				(211)				(211)
Capital contribution by parent			45					45
Other comprehensive income								—
BALANCE AS OF MARCH 31, 2018	235	$589	$4,694	$8,409	$(962)	$(62)	$(6)	$12,662
Net income				149				149
Common stock dividend to parent				$(212)				(212)
Capital contribution by parent			25					25
Other comprehensive income							1	1
BALANCE AS OF JUNE 30, 2018	235	$589	$4,719	$8,346	$(962)	$(62)	$(5)	$12,625
Net income				$431				431
Common stock dividend to parent				(212)				(212)
Capital contribution by parent			25					25
Other comprehensive income								—
BALANCE AS OF SEPTEMBER 30, 2018	235	$589	$4,744	$8,565	$(962)	$(62)	$(5)	$12,869
Net income				227				227
Common stock dividend to parent				(211)				(211)
Capital contribution by parent			25					25
Other comprehensive income								—

BALANCE AS OF DECEMBER 31, 2018	235	$589	$4,769	$8,581	$(962)	$(62)	$(5)	$12,910	BALANCE AS OF DECEMBER 31, 2018	235	$589	$4,769	$8,581	$(962)	$(62)	$(5)	$12,910
Net income				412				412	Net income				412				412
Common stock dividend to parent				(228)				(228)	Common stock dividend to parent				(228)				(228)
Capital contribution by parent			225					225	Capital contribution by parent			225					225
Other comprehensive income								—	Other comprehensive income								0
BALANCE AS OF MARCH 31, 2019	235	$589	$4,994	$8,765	$(962)	$(62)	$(5)	$13,319	BALANCE AS OF MARCH 31, 2019	235	589	4,994	8,765	(962)	(62)	(5)	13,319
Net income				152				152	Net income				152				152
Common stock dividend to parent				(228)				(228)	Common stock dividend to parent				(228)				(228)
Capital contribution by parent			625					625	Capital contribution by parent			625					625
Other comprehensive income								—	Other comprehensive income								0
BALANCE AS OF JUNE 30, 2019	235	$589	$5,619	$8,689	$(962)	$(62)	$(5)	$13,868	BALANCE AS OF JUNE 30, 2019	235	$589	$5,619	$8,689	$(962)	$(62)	$(5)	$13,868
Net income				414				414	Net income				414				414
Common stock dividend to parent				(229)				(229)	Common stock dividend to parent				(229)				(229)
Capital contribution by parent			25					25	Capital contribution by parent			25					25
Other comprehensive income							1	1	Other comprehensive income							1	1
BALANCE AS OF SEPTEMBER 30, 2019	235	$589	$5,644	$8,874	$(962)	$(62)	$(4)	$14,079	BALANCE AS OF SEPTEMBER 30, 2019	235	589	5,644	8,874	(962)	(62)	(4)	14,079

BALANCE AS OF DECEMBER 31, 2019									BALANCE AS OF DECEMBER 31, 2019	235	$589	$5,669	$8,919	$(962)	$(62)	$(6)	$14,147
Net income									Net income				406				406
Common stock dividend to parent									Common stock dividend to parent				(246)				(246)
Capital contribution by parent									Capital contribution by parent			25					25
Other comprehensive income									Other comprehensive income							1
BALANCE AS OF MARCH 31, 2020									BALANCE AS OF MARCH 31, 2020	235	$589	$5,694	$9,079	$(962)	$(62)	$(5)	$14,333
Net income									Net income				152				152
Common stock dividend to parent									Common stock dividend to parent				(246)				(246)
Capital contribution by parent									Capital contribution by parent			25					25
Other comprehensive income									Other comprehensive income							1
BALANCE AS OF JUNE 30, 2020									BALANCE AS OF JUNE 30, 2020	235	$589	$5,719	$8,985	$(962)	$(62)	$(4)	$14,265
Net income									Net income				405				405
Common stock dividend to parent									Common stock dividend to parent				(245)				(245)
Capital contribution by parent									Capital contribution by parent			150					150
Other comprehensive income									Other comprehensive income							0	0
BALANCE AS OF SEPTEMBER 30, 2020									BALANCE AS OF SEPTEMBER 30, 2020	235	$589	$5,869	$9,145	$(962)	$(62)	$(4)	$14,575

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

~~Table of Contents~~

NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)

General

These combined notes accompany and form an integral part of the separate interim consolidated financial statements of each of the 2 separate registrants: Consolidated Edison, Inc. and its subsidiaries (Con Edison) and Consolidated Edison Company of New York, Inc. and its subsidiaries (CECONY). CECONY is a subsidiary of Con Edison and as such its financial condition and results of operations and cash flows, which are presented separately in the CECONY consolidated financial statements, are also consolidated, along with those of Orange and Rockland Utilities, Inc. and its subsidiary (O&R), Con Edison Clean Energy Businesses, Inc. (together with its subsidiaries, the Clean Energy Businesses) and Con Edison Transmission, Inc. (together with its subsidiaries, Con Edison Transmission) in Con Edison’s consolidated financial statements. The term “Utilities” is used in these notes to refer to CECONY and O&R.

As used in these notes, the term “Companies” refers to Con Edison and CECONY and, except as otherwise noted, the information in these combined notes relates to each of the Companies. However, CECONY makes no representation as to information relating to Con Edison or the subsidiaries of Con Edison other than itself.

The separate interim consolidated financial statements of each of the Companies are unaudited but, in the opinion of their respective managements, reflect all adjustments (which include only normally recurring adjustments) necessary for a fair ~~presentation~~statement of the results for the interim periods presented. The Companies’ separate interim consolidated financial statements should be read together with their separate audited financial statements (including the combined notes thereto) included in Item 8 of their combined Annual Report on Form 10-K for the year ended December 31, ~~2018~~2019 and their separate unaudited financial statements (including the combined notes thereto) included in Part 1, Item 1 of their combined Quarterly ~~Report~~Reports on Form 10-Q for the quarterly periods ended March 31, ~~2019~~2020 and June 30, ~~2019.~~2020. Certain prior period amounts have been reclassified to conform to the current period presentation.

Con Edison has 2 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 3 subsidiaries: Consolidated Edison Development, Inc. (Con Edison Development)~~, ~~a company that~~through its subsidiaries, develops, owns and operates renewable and energy infrastructure ~~projects; Consolidated Edison Energy, Inc. (Con Edison Energy), a company that~~projects and 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 electric transmission facilities through its subsidiary, Consolidated Edison Transmission, LLC (CET Electric), and invests in gas pipeline and storage facilities through its subsidiary Con Edison Gas Pipeline and Storage, LLC (CET Gas).

Note A – Summary of Significant Accounting Policies and Other Matters

~~Revenue Recognition~~Financial Instruments – Credit Losses

Adoption of New Standard

In January 2020, the Companies adopted Accounting Standards Update (ASU) 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (CECL). The amendments replace the incurred loss impairment methodology which involved delayed recognition of credit losses. The amendments introduce an expected credit loss impairment model which requires immediate recognition of anticipated losses over the instrument’s life. A broader range of reasonable and supportable information must be considered in developing the credit loss estimates. The Companies' financial instruments subject to the amendments are included in the lines “Accounts receivable – customers” and “Other receivables.” Substantially all of these in-scope financial instruments are expected to be collected within one year of billing.

The Companies adopted the amendments using the modified retrospective method for all financial instruments measured at amortized costs. Results for reporting periods beginning after January 1, 2020 are presented under Accounting Standards Codification (ASC) 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. No prior period adjustment or charge to retained earnings for cumulative impact was required as a result of the Companies’ adoption of the amendments.

Allowance for Uncollectible Accounts

The Utilities’ “Account receivable – customers” balance consists of utility bills due (bills are generally due the month following billing) from customers who have energy delivered, generated, or services provided by the Utilities. The balance also reflects the Utilities’ purchase of receivables from energy service companies to support the retail choice programs.

“Other receivables” balance generally reflects costs billed by the Utilities for goods and services provided to external parties, such as accommodation work for private parties and certain governmental entities, real estate rental and pole attachments. The Clean Energy Businesses’ other receivables balance includes bills related to the sale of energy from renewable electric production projects.

The Clean Energy Businesses’ customer accounts receivable balance generally reflects the management of energy supply assets, energy-efficiency services to government and commercial customers, and the engineering, procurement, and construction services of renewable energy projects. The Clean Energy Businesses calculate an allowance for uncollectible accounts related to their energy services customers based on an aging and customer-specific analysis. The amount of such reserves was not material at September 30, 2020.

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 and 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.

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.

During the first nine months of 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 uncollectible accounts for Con Edison and CECONY were $31 million and $30 million, respectively, for the three months ended September 30, 2020 and $48 million and $46 million, respectively, for the nine months ended September 30, 2020.

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 three and nine months ended September 30, 2019 and 2018, 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.2020:


	For the Three Months Ended September 30, 2020
	Con Edison		CECONY
(Millions of Dollars)	Accounts receivable - customers	Other receivables	Accounts receivable - customers	Other receivables
Allowance for credit losses
Beginning Balance at July 1, 2020	$87	$5	$81	$3
Recoveries	2	0	2	0
Write-offs	(4)	0	(3)	0
Reserve adjustments	33	1	31	1
Ending Balance September 30, 2020	$118	$6	$111	$4

1921

~~Table of Contents~~

For the Three Months Ended September 30, 2019 For the Three Months Ended September 30, 2018
(Millions of Dollars) Revenues from contracts with customers Other revenues (a) Total operating revenues Revenues from contracts with customers Other revenues (a) Total operating revenues
CECONY
Electric $2,582 $(38) $2,544 $2,631 $(60) $2,571
Gas 263 12 275 264 —
264
Steam 54 4 58 64 —
64
Total CECONY $2,899 $(22) $2,877 $2,959 $(60) $2,899
O&R
Electric 205 5 210 215 (3) 212
Gas 25 6 31 31 3 34
Total O&R $230 $11 $241 $246
$—
$246
Clean Energy Businesses
Renewables 193 (b) —
193 68 (b) —
68
Energy services 14 —
14 24 —
24
Other —
40 40 —
89 89
Total Clean Energy Businesses $207 $40 $247 $92 $89 $181
Con Edison Transmission 1 —
1 1 —
1
Other (c) —

(1) (1) —

1 1
Total Con Edison $3,337 $28 $3,365 $3,298 $30 $3,328


	For the Nine Months Ended September 30, 2020
	Con Edison		CECONY
(Millions of Dollars)	Accounts receivable - customers	Other receivables	Accounts receivable - customers	Other receivables
Allowance for credit losses
Beginning Balance at January 1, 2020	$70	$4	$65	$3
Recoveries	6	0	6	0
Write-offs	(37)	(1)	(35)	0
Reserve adjustments	79	3	75	1
Ending Balance September 30, 2020	$118	$6	$111	$4

~~(a) For the Utilities, this includes revenue from alternative revenue programs, such as the revenue decoupling mechanisms under their New York electric and gas rate plans.For the Clean Energy Businesses, this includes revenue from wholesale services.~~

~~(b) Included within the totals for Renewables revenue at the Clean Energy Businesses is $3 millionfor the three months ended September 30, 2019 and 2018, of revenue related to engineering, procurement and construction services.~~


~~(c)~~	~~Parent company and consolidation adjustments.~~

For the Nine Months Ended September 30, 2019 For the Nine Months Ended September 30, 2018
(Millions of Dollars) Revenues from contracts with customers Other revenues (a) Total operating revenues Revenues from contracts with customers Other revenues (a) Total operating revenues
CECONY
Electric $6,048 $126 $6,174 $6,106 $1 $6,107
Gas 1,573 32 1,605 1,516 24 1,540
Steam 456 13 469 467 7 474
Total CECONY $8,077 $171 $8,248 $8,089 $32 $8,121
O&R
Electric 488 5 493 508 (3) 505
Gas 178 7 185 179 7 186
Total O&R $666 $12 $678 $687 $4 $691
Clean Energy Businesses
Renewables 465 (b) —
465 273 (b) —
273
Energy services 53 —
53 65 —
65
Other —
178 178 —
235 235
Total Clean Energy Businesses $518 $178 $696 $338 $235 $573
Con Edison Transmission 3 —
3 3 —
3
Other (c) —
(2) (2) —
—
—
Total Con Edison $9,264 $359 $9,623 $9,117 $271 $9,388

~~(b) Included within the totals for Renewables revenue at the Clean Energy Businesses is $9 millionand $100 millionfor the nine months ended September 30, 2019 and 2018, respectively, of revenue related to engineering, procurement and construction services.~~


~~(c)~~	~~Parent company and consolidation adjustments.~~

~~Table of Contents~~

2019 2018
(Millions of Dollars) Unbilled contract revenue (a) Unearned revenue (b) Unbilled contract revenue (a) Unearned revenue (b)
Beginning balance as of January 1, $29 $20 $58 $87
Additions (c) 63 2 111 34
Subtractions (c) 68 2 (d) 138 105 (d)
Ending balance as of September 30, $24 $20 $31 $16

~~(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, $2 million and $50 million were included in the balance as of January 1, 2019 and 2018, respectively.~~

As of September 30, 2019, the aggregate amount of the remaining fixed performance obligations of the Clean Energy Businesses under contracts with customers for energy services is $89 million, of which $53 million will be recognized within the next two years, and the remaining $36 million will be recognized pursuant to long-term service and maintenance agreements.

General Utility Plant

General utility plant of Con Edison and CECONY included ~~$95~~$88 million and ~~$90~~$83 million, respectively, at September 30, ~~2019~~2020 and ~~$100~~$93 million and ~~$95~~$88 million, respectively, at December 31, ~~2018,~~2019, 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 $8$15 million at September 30, ~~2019~~2020 and ~~was $3~~$10 million at December 31, ~~2018.~~2019.

Goodwill

The Companies test goodwill for impairment at least annually or whenever there is a triggering event, and test long-lived and intangible assets for recoverability when events or changes in circumstances indicate that the carrying value of long-lived or intangible assets may not be recoverable. The Companies identified no triggering events or changes in circumstances related to the COVID-19 pandemic that would indicate that the carrying value of long-lived or intangible assets may not be recoverable at September 30, 2020.

Long-Lived and Intangible Assets

In January 2019, Pacific Gas and Electric Company (PG&E) filed in the United States Bankruptcy Court for the Northern District of California for reorganization under Chapter 11 of the U.S. Bankruptcy Code. The output of certain ~~Con Edison Development~~of the Clean Energy Businesses' renewable electric production projects with an aggregate generating capacity of 680 MW (AC) (PG&E Projects) is sold to PG&E under long-term power purchase agreements (PG&E PPAs). Most of the PG&E PPAs have contract prices that are higher than estimated market prices.

In July 2020, PG~~&E, as a debtor in possession, may assume or reject the PG&E PPAs, subject to review by the bankruptcy court. In September 2019, PG&E submitted its~~&E’s plan of reorganization, ~~to the bankruptcy court. PG&E’s plan includes the assumption by PG&E of all of its power purchase agreements. PG&E’s plan is subject to, among other things: confirmation~~previously confirmed by the bankruptcy court byin June ~~30,~~ 2020, ~~(or any extension of the date by which PG&E’s bankruptcy must be resolved for PG&E to participate in the insurance fund described below); approval by the~~became effective. The California Public Utilities Commission ~~(CPUC) of~~also approved PG&E’s implementation of the plan and participation in the insurance fund; and PG&E obtaining funding for distributions under the plan. PG&E may revoke, withdraw or delay consideration of the plan prior to its confirmation by the bankruptcy court, and file subsequent amended plans of reorganization. In October 2019, the Ad Hoc PG&E senior note holder committee (Noteholders) and tort claimant committee (TCC) submitted to the bankruptcy court an alternative plan of reorganization ~~for PG&E.~~and found that it complied with the wildfire fund legislation enacted by California in July 2019. The Noteholder/TCC plan also calls for PG&E to assume all of its power purchase agreements and participate in the insurance fund. The Noteholder/TCC plan is also subject to, among other things, confirmation by the bankruptcy court, approval by the CPUC and obtaining funding for distributions under the plan. The Noteholder/TCC plan can be revoked, amended, withdrawn or delayed. Bankruptcy court approval is required for a plan of reorganization to be sent to creditors for consideration.

In January and May 2019, FERC issued orders (which PG&E is challenging) affirming its jurisdiction to review and approve the modification or abrogation of wholesale power contracts that are the subject of rejection in bankruptcy. In June 2019, the bankruptcy court ruled that FERC does not have concurrent jurisdiction with it and that FERC’s January and May 2019 orders are of no force and effect in the bankruptcy proceeding. FERC and additional parties, including Con Edison Development, are challenging the bankruptcy court’s June 2019 ruling in appeals that are pending in the United States Court of Appeals for the Ninth Circuit.

~~Table of Contents~~

~~In July 2019, California enacted a law addressing future California wildfires. The law~~wildfire fund legislation includes provisions for the establishment of wildfire liquidity and insurance funds and possible limitation of future wildfire liabilities for California utilities. PG&E, Southern California Edison Company and San Diego Gas & Electric Company have agreed to participate in the insurance fund. PG&E’s participation will require bankruptcy court approval and is conditioned on, among other things, resolution of PG&E’s bankruptcy by June 30, 2020, and a determination by the CPUC that PG&E’s bankruptcy reorganization plan is consistent with the state’s climate goals as required under the California Renewables Portfolio Standard Program and related procurement requirements of the state.

The PG&E bankruptcy iswas an event of default under the PG&E PPAs. ~~Unless the lenders for the related project debt otherwise agree, distributions~~Distributions from the related projects to ~~Con Edison Development will not be made~~the Clean Energy Businesses were restricted during the pendency of the bankruptcy. As of the effective date of the plan of reorganization, PG&E assumed all of the PG&E PPAs. In July 2020, the Clean Energy Businesses received previously restricted distributions and have resumed distributions for all projects. See “Reconciliation of Cash, Temporary Cash Investments and Restricted Cash,” below.

~~At September 30, 2019, Con Edison’s consolidated balance sheet included $827 million~~Also, as a result of ~~net non-utility plant relating to the~~ PG&E Projects, $1,075 million of intangible assets relating to the PG&E PPAs, $287 million of net non-utility plant of additional projects that secure the related project debt and $1,012 million of non-recourse related project debt. See Note C. Con Edison has tested whether its net non-utility plant relating to the PG&E Projects and intangible assets relating to the PG&E PPAs have been impaired. The projected future cash flows used in the test reflected Con Edison’s expectation that the PG&E PPAs are not likely to be rejected. Based on the test, Con Edison has determined that there was no impairment. If, in the future, one or moreassuming all of the PG&E PPAs ~~is rejected or any such rejection becomes likely, there will be an impairment of the related intangible assets~~ and ~~could be an impairment of the related non-utility plant. The amount of any such impairment could be material.~~

~~Acquisitions and Investments~~

~~For the nine months ended September 2019,~~emerging from bankruptcy, the Clean Energy Businesses have received full payment of all past due receivables, and all related project debt with a maturity longer than one year has been reclassified ~~approximately $100 million related~~ to ~~the purchase price adjustments for the December 2018 acquisition by a~~long-term debt.

Investments

Investments of Con Edison ~~Development subsidiary~~include those of ~~Sempra Solar Holdings, LLC. The adjustments primarily decreased property, plant~~Con Edison Transmission that are accounted for under the equity method ($1,599 million and ~~equipment~~$1,585 million at September 30, 2020 and ~~asset retirement obligations,~~December 31, 2019, respectively). Changes in economic conditions and ~~were recorded within the one year available~~forecasted cash flows, among other factors, could require equity method investments to ~~finalize the purchase price allocation, including working capital and~~recognize a decrease in value other ~~closing adjustments.~~than for a temporary decline.

Earnings Per Common Share

Con Edison presents basic and diluted earnings per share (EPS) on the face of its consolidated income statement. Basic EPS is calculated by dividing earnings available to common shareholders (“Net income for common stock” on Con Edison’s consolidated income statement) by the weighted average number of Con Edison common shares outstanding during the period. In the calculation of diluted EPS, weighted average shares outstanding are increased for additional shares that would be outstanding if potentially dilutive securities were converted to common ~~stock.~~shares.

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 and its common shares that are subject to a May 2019 forward sale agreement (see Note C). Before the issuance of common shares upon settlement of the forward sale agreement, the shares will be reflected in the company’s diluted earnings per share calculations using the treasury stock method. Under this method, the number of common shares used in calculating diluted earnings per share is deemed to be increased by the excess, if any, of the number of shares that would be issued upon physical settlement of the forward sale agreement over the number of shares that could be purchased by the company in the market (based on the average market price during the period) using the proceeds due upon physical settlement (based on the adjusted forward sale price at the end of the reporting period).price.

For the three and nine months ended September 30, ~~2019~~2020 and ~~2018,~~2019, basic and diluted EPS for Con Edison are calculated as follows:


	For the Three Months Ended September 30,		For the Nine Months Ended September 30,
(Millions of Dollars, except per share amounts/Shares in Millions)	2020	2019	2020	2019
Net income for common stock	$493	$473	$1,058	$1,048
Weighted average common shares outstanding – basic	334.5	332.2	334.1	327.3
Add: Incremental shares attributable to effect of potentially dilutive securities	0.9	1.0	0.9	1.0
Adjusted weighted average common shares outstanding – diluted	335.4	333.2	335.0	328.3
Net Income per common share – basic	$1.47	$1.42	$3.17	$3.20
Net Income per common share – diluted	$1.47	$1.42	$3.16	$3.19

~~Table of Contents~~

For the Three Months Ended September 30, For the Nine Months Ended September 30,
(Millions of Dollars, except per share amounts/Shares in Millions) 2019 2018 2019 2018
Net income for common stock $473 $435 $1,048 $1,051
Weighted average common shares outstanding – basic 332.2 311.1 327.3 310.8
Add: Incremental shares attributable to effect of potentially dilutive securities 1.0 1.2 1.0 1.1
Adjusted weighted average common shares outstanding – diluted 333.2 312.3 328.3 311.9
Net Income per common share – basic $1.42 $1.40 $3.20 $3.38
Net Income per common share – diluted $1.42 $1.39 $3.19 $3.37

The computation of diluted EPS for the three and nine months ended September 30, ~~2018~~2020 and 2019 excludes immaterial amounts of performance share awards that were not included because of their anti-dilutive effect.

Changes in Accumulated Other Comprehensive Income/(Loss) by Component

For the three and nine months ended September 30, ~~2019~~2020 and ~~2018,~~2019, changes to accumulated other comprehensive income/(loss) (OCI) for Con Edison and CECONY are as follows:


	For the Three Months Ended September 30,
	Con Edison		CECONY
(Millions of Dollars)	2020	2019	2020	2019
Beginning balance, accumulated OCI, net of taxes (a)	$(14)	$(11)	$(4)	$(5)
Amounts reclassified from accumulated OCI related to pension plan liabilities, net of tax of $(1) for Con Edison in 2020 and 2019 (a)(b)	2	1	0	1
Current period OCI, net of taxes	2	1	0	1
Ending balance, accumulated OCI, net of taxes	$(12)	$(10)	$(4)	$(4)

For the Three Months Ended September 30,
Con Edison CECONY
(Millions of Dollars) 2019 2018 2019 2018
Beginning balance, accumulated OCI, net of taxes (a) $(11) $(20) $(5) $(5)
Amounts reclassified from accumulated OCI related to pension plan liabilities, net of tax of $(1) for Con Edison in 2019 and 2018 (a)(b) 1 2 1 —
Current period OCI, net of taxes 1 2 1 —
Ending balance, accumulated OCI, net of taxes $(10) $(18) $(4) $(5)


	For the Nine Months Ended September 30,
	Con Edison		CECONY
(Millions of Dollars)	2020	2019	2020	2019
Beginning balance, accumulated OCI, net of taxes (a)	$(19)	$(16)	$(6)	$(5)
OCI before reclassifications, net of tax of $(1) for Con Edison in 2020 and 2019	4	2	0	0
Amounts reclassified from accumulated OCI related to pension plan liabilities, net of tax of $(2) and $(1) for Con Edison in 2020 and 2019, respectively (a)(b)	3	4	2	1
Current period OCI, net of taxes	7	6	2	1
Ending balance, accumulated OCI, net of taxes	$(12)	$(10)	$(4)	$(4)

(a)Tax reclassified from accumulated OCI is reported in the income tax expense line item of the consolidated income statement.

(b)For the portion of unrecognized pension and other postretirement benefit costs relating to the Utilities, costs are recorded into, and amortized out of, regulatory assets and liabilities instead of OCI. The net actuarial losses and prior service costs recognized during the period are included in the computation of total periodic pension and other postretirement benefit costs. See Notes E and F.

For the Nine Months Ended September 30,
Con Edison CECONY
(Millions of Dollars) 2019 2018 2019
2018
Beginning balance, accumulated OCI, net of taxes (a) $(16) $(26) $(5) $(6)
OCI before reclassifications, net of tax of $(1) for Con Edison in 2019 and 2018 2 3 —
—
Amounts reclassified from accumulated OCI related to pension plan liabilities, net of tax of $(1) and $(2) for Con Edison in 2019 and 2018, respectively (a)(b) 4 5 1 1
Current period OCI, net of taxes 6 8 1 1
Ending balance, accumulated OCI, net of taxes $(10) $(18) $(4) $(5)


~~(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 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 September 30, ~~2019~~2020 and ~~2018,~~2019, cash, temporary cash investments and restricted cash for Con Edison and CECONY ~~are~~were as follows:

At September 30,
Con Edison CECONY
(Millions of Dollars) 2019 2018 2019
2018
Cash and temporary cash investments $78 $199 $15 $17
Restricted cash (a) 175 46 —
—
Total cash, temporary cash investments and restricted cash $253 $245 $15 $17

~~(a)~~

Restricted cash included cash of Con Edison Development renewable electric production project subsidiaries ($174 million and $44 million at September 30, 2019 and 2018, respectively) that, under the related project debt agreements, is either restricted until the various maturity dates of the project debt to being used for normal operating expenses and capital expenditures, debt service, and required reserves or


	At September 30,
	Con Edison		CECONY
(Millions of Dollars)	2020	2019	2020	2019
Cash and temporary cash investments	$153	$78	$23	$15
Restricted cash (a)	161	175	0	0
Total cash, temporary cash investments and restricted cash	$314	$253	$23	$15

23(a)

~~Table~~Restricted cash included cash of ~~Contents~~

the Clean Energy Businesses' renewable electric production project subsidiaries ($161 million and $174 million at September 30, 2020 and 2019, respectively) that, under the related project debt agreements, is either restricted until the various maturity dates of the project debt to being used for normal operating expenses and capital expenditures, debt service, and required reserves or were restricted as a result of the PG&E bankruptcy. During the pendency of the PG&E bankruptcy, ~~unless the lenders for the related project debt otherwise agree,~~ cash ~~may~~was not be distributed from the related projects to ~~Con Edison Development.~~the Clean Energy Businesses. In July 2020, PG&E’s plan of reorganization became effective. In July 2020, the Clean Energy Businesses received previously restricted distributions and have resumed distributions for all projects. See “Long-Lived and Intangible Assets,” above, and Note C. ~~In addition,~~At September 30, 2019, restricted cash included O&R's New Jersey utility subsidiary, Rockland Electric Company transition bond charge collections, net of principal, interest, and trustee and service fees ($1 ~~million and $2 million at September 30, 2019 and 2018, respectively)~~million).

Note B – Regulatory Matters

~~Rate Plans~~COVID-19 Regulatory Matters

Governors, public utility commissions, federal authorities and other regulatory agencies in the states in which the Utilities operate have issued orders related to the COVID-19 pandemic that impact the Utilities as described below.

New York State Regulation

In March 2020, New York State Governor Cuomo declared a State Disaster Emergency for the State of New York, due to the COVID-19 pandemic and signed the "New York State on PAUSE" executive order that closed all non-essential businesses statewide. New York State designated utilities, including CECONY and O&R, as essential businesses that were able to continue a portion of their work during the effectiveness of the PAUSE order. In May 2020, the "New York Forward" plan went into effect. New York Forward is a phased plan to reopen businesses in geographic areas of New York State that meet metrics established by various public health organizations. In October 2020, Governor Cuomo announced a new cluster action initiative to address COVID-19 hotspots that have arisen in various areas of New York within the Utilities’ service territory and to impose new rules and restrictions targeted to areas with the highest concentration of COVID-19 cases and the surrounding communities. As a result of these COVID-19 clusters, the Utilities have limited their work in customer premises in the impacted areas to only address emergency, safety-related and selected service connections requested by customers. Since the emergency declaration, and due to economic conditions, the NYSPSC and the Utilities have worked to mitigate the potential impact of the COVID-19 pandemic on the Utilities, their customers and other stakeholders.

In March 2020, the Utilities began suspending service disconnections, certain collection notices, final bill collection agency activity, new late payment charges and certain other fees for all customers. The Utilities also began providing payment extensions for all customers that were scheduled to be disconnected prior to the start of the COVID-19 pandemic. In June 2020, the state of New York enacted a law prohibiting New York utilities, including CECONY and O&R, from disconnecting residential customers during the COVID-19 state of emergency. In addition, such prohibition will apply for an additional 180 days after the state of emergency ends for residential customers who have experienced a change in financial circumstances due to the COVID-19 pandemic. The law expires on March 31, 2021. For the three and nine months ended September 30, 2020, the estimated foregone revenues that were not collected by the Utilities were approximately $21 million and $44 million, respectively, for CECONY and $1 million and $2 million, respectively, for O&R. See Note K to the Third Quarter Financial Statements. Also in March 2020, the Utilities requested and the NYSPSC granted extensions to file their 2019 Earnings Adjustment Mechanisms (EAMs) reports, which were filed in July 2020. The earned EAM incentives of approximately $46 million and $3 million for CECONY and O&R, respectively, are being recovered from customers over a twelve-month period that began September 2020.

In June 2020, the ~~staff~~NYSPSC directed CECONY to implement a summer cooling credit program to help mitigate the cost of staying home and running 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 NYSPSC further

ordered that the estimated $70.6 million cost of the program will be recovered over five years, beginning in January 2021. As of September 30, 2020, CECONY deferred for later recovery $63.6 million of summer cooling credit costs.

The Utilities’ New York rate plans allow them to defer costs resulting from a change in legislation, regulation and related actions that have taken effect during the term of the rate plans once the costs exceed a specified threshold. For the nine months ended September 30, 2020, the reserve increases to the allowance for uncollectible accounts associated with the COVID-19 pandemic for CECONY electric and gas operations and O&R electric operations were $46 million and $2 million, respectively, and were deferred pursuant to the legislative, regulatory and related actions provisions of the rate plans as a result of the New York State ~~Public Service Commission (NYSPSC)~~on PAUSE and ~~other parties entered into a Joint Proposal~~related executive orders. The reserve increase to the allowance for uncollectible accounts associated with the COVID-19 pandemic for O&R gas operations of $1 million did not meet the deferral threshold at September 30, 2020. The Utilities’ New York rate plans also provide for an allowance for write-offs of customer accounts receivable balances. The above amounts deferred pursuant to the legislative, regulatory and related actions provisions were reduced by the amount that the actual write-offs of customer accounts receivable balances were below the allowance reflected in rates, which differences were $8 million and $1 million for CECONY and O&R, respectively, for the nine months ended September 30, 2020.

As of September 30, 2020, CECONY deferred, for New York City residential customers, $46.8 million of higher summer generation capacity supply costs. CECONY expects to recover approximately $17 million of such costs over the period November 2020 through April 2021 and the remaining balance over the period May 2021 through October 2021.

In June 2020, the NYSPSC established a generic proceeding on the impacts of the COVID-19 pandemic and sought comment on a variety of COVID-19 related issues. In July 2020, the Utilities submitted joint comments with other large utilities in New York State that included a formal request to defer all COVID-19 related costs and for a surcharge mechanism to collect such deferrals based upon the individual utility's need.

The Utilities’ rate plans have revenue decoupling mechanisms in their New York electric and gas businesses that reconcile actual energy delivery revenues to the authorized delivery revenues approved by the NYSPSC per month and accumulate the deferred balances semi-annually under CECONY's electric rate plan (January through June and July through December, respectively) and annually under CECONY's gas rate plan and O&R New York's electric and gas rate plans ~~for the three-year period January 2020~~(January through ~~December 2022. The Joint Proposal is subject to NYSPSC approval. The following tables contain a summary of the rate plans.~~



~~CECONY Electric~~
~~Effective period~~		~~January 2020 – December 2022 (c)~~
~~Base rate changes (a)~~		Yr. 1 – $113 million Yr. 2 – $370 million Yr. 3 – $326 million
~~Amortizations to income of net regulatory liabilities (b)~~		Yr. 1 – $267 million Yr. 2 – $269 million Yr. 3 – $272 million
~~Other revenue sources~~		Retention of $75 million of annual transmission congestion revenues. Potential earnings adjustment mechanism incentivesDecember). Differences are accrued with interest each month for ~~energy efficiency and other potential incentives of up to: Yr. 1 - $69 million; Yr. 2 - $74 million; and Yr. 3 - $79 million.~~
~~Revenue decoupling mechanism~~		~~Continuation of reconciliation of actual to authorized electric delivery revenues.~~
~~Recoverable energy costs~~		~~Continuation of current rate recovery of purchased power and fuel costs.~~
~~Negative revenue adjustments~~		~~Potential charges if certain performance targets relating to service, reliability, safety and other matters are not met: Yr. 1 - $450 million; Yr. 2 - $461 million; and Yr. 3 - $476 million.~~
~~Cost reconciliations~~		Continuation of reconciliation of expenses for 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)
~~Net utility plant reconciliations~~		Target levels reflected in rates: Electric average net plant target excluding advanced metering infrastructure (AMI): Yr. 1 - $24,572 million; Yr. 2 - $25,366 million; Yr. 3 - $26,197 million AMI: Yr. 1 - $572 million; Yr. 2 - $740 million; Yr. 3 - $806 million (g)
~~Average rate base~~		Yr. 1 - $21,660 million Yr. 2 - $22,783 million Yr. 3 - $23,926 million
~~Weighted average cost of capital (after-tax)~~		~~6.61 percent~~
~~Authorized return on common equity~~		~~8.80 percent~~
~~Earnings sharing~~		~~Most earnings above an annual earnings threshold of 9.3 percent are to be applied to reduce regulatory assets for environmental remediation and other costs accumulated in the rate year.~~
~~Cost of long-term debt~~		~~4.63 percent~~
~~Common equity ratio~~		~~48 percent~~

~~(a)~~

Base rates reflect recovery by the company of certain costs of its energy efficiency, Reforming the Energy Vision 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 ten-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 5-year period ($48 million annually).


~~(c)~~	If at the end of any semi-annual period ending June 30 and December 31, Consolidated Edison Inc.’s investments in its non-utility businesses exceed 15 percent of its total consolidated revenues, assets or cash flow, or if the ratio of holding company debt to total

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~~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.~~


~~(d)~~	Deferrals for property taxes are limited to 90 percent of the difference from amounts reflected in rates, subject to an annual maximum for the remaining difference of not more than a maximum number of basis points impact on return on common equity: Yr. 1 - 10.0 basis points; Yr. 2 - 7.5 basis points; and Yr. 3 - 5.0 basis points.

~~(e)~~

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 exceptions, of 15 percent of the amount reflected in rates.


~~(f)~~	~~In addition, the NYSPSC staff has commenced a focused operations audit to investigate the income tax accounting of~~ CECONY and ~~other New York utilities. Any NYSPSC-ordered adjustment to CECONY’s income tax accounting will be refunded to or collected from customers, as determined by the NYSPSC.~~


~~(g)~~	~~Reconciliation of net utility plant for AMI will be done on a combined basis for electric and gas.~~



~~CECONY Gas~~
~~Effective period~~		~~January 2020 – December 2022 (c)~~
~~Base rate changes (a)~~		Yr. 1 – $84 million Yr. 2 – $122 million Yr. 3 – $167 million
~~Amortizations to income of net regulatory liabilities (b)~~		Yr. 1 – $45 million Yr. 2 – $43 million Yr. 3 – $10 million
~~Other revenue sources~~		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 - $20 million; Yr. 2 - $22 million; and Yr. 3 - $25 million
~~Revenue decoupling mechanism~~		~~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.~~
~~Recoverable energy costs~~		~~Continuation of current rate recovery of purchased gas costs.~~
~~Negative revenue adjustments~~		~~Potential charges if performance targets relating to service, safety and other matters are not met: Yr. 1 - $81 million; Yr. 2 - $88 million; and Yr. 3 - $96 million.~~
~~Cost reconciliations~~		Continuation of reconciliation of expenses for 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)
~~Net utility plant reconciliations~~		Target levels reflected in rates: Gas average net plant target excluding AMI: Yr. 1 - $8,123 million; Yr. 2 - $8,861 million; Yr. 3 - $9,600 million AMI: Yr. 1 - $142 million; Yr. 2 - $183 million; Yr. 3 - $211 million (g)
~~Average rate base~~		Yr. 1 - $7,171 million Yr. 2 - $7,911 million Yr. 3 - $8,622 million
~~Weighted average cost of capital (after-tax)~~		~~6.61 percent~~
~~Authorized return on common equity~~		~~8.80 percent~~
~~Earnings sharing~~		~~Most earnings above an annual earnings threshold of 9.3 percent are to be applied to reduce regulatory assets for environmental remediation and other costs accumulated in the rate year.~~
~~Cost of long-term debt~~		~~4.63 percent~~
~~Common equity ratio~~		~~48 percent~~

~~(a)~~

At the NYSPSC’s option, the gas base rate increases shown above may be implemented with increases of $47 million in Yr. 1; $176 million in Yr. 2; and $170 million in Yr. 3. 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 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)-(g)~~	~~See footnotes (c), (d), (e), (f) and (g) to the table under “CECONY Electric,” above.~~

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O&R New ~~York – Electric~~York’s electric customers and ~~Gas~~after the annual deferral period ends for CECONY and O&R New York’s gas customers for refund to, or recovery from customers, as applicable. Generally, the refund to or recovery from customers begins August and February of each year over an ensuing six-month period for CECONY's electric customers and February of each year over an ensuing twelve-month period for CECONY's gas and O&R New York's electric and gas customers.

New Jersey State Regulation

In March ~~2019,~~2020, New Jersey Governor Murphy declared a Public Health Emergency and State of Emergency for the ~~NYSPSC approved~~State of New Jersey. Since that declaration, the ~~November 2018 Joint Proposal~~NJBPU and RECO have mitigated the potential impact of the COVID-19 pandemic on RECO, its customers and other stakeholders. New Jersey designated utilities, including RECO, as essential businesses that were able to continue a portion of their work. RECO modified or suspended certain work in the state. In March 2020, RECO began suspending late payment charges, terminations for ~~new electric~~non-payment, and ~~gas rates.~~no access fees during the COVID-19 pandemic. The ~~Joint Proposal provides for electric rate increases~~suspension of ~~$13.4 million, $8.0 million~~these fees is not expected to be material.

In July 2020, the NJBPU authorized RECO and ~~$5.8 million, effective January 1, 2019,~~other New Jersey utilities to create a COVID-19-related regulatory asset by deferring prudently incurred incremental costs related to COVID-19 beginning on March 9, 2020, and through the later of September 30, 2021, ~~respectively. The Joint Proposal provides~~or 60 days after the emergency declaration is no longer in effect. RECO deferred net incremental COVID-19 related costs of $0.3 million through September 30, 2020.

Federal Regulation

In March 2020, the North American Electric Reliability Corporation (NERC) issued guidance that the effects of the COVID-19 pandemic will be considered an acceptable basis for ~~a gas rate decrease of $7.5 million, effective January 1, 2019, and gas rate increases of $3.6 million and $0.7 million, effective January~~non-compliance with certain NERC Reliability Standards requirements that would have required action between March 1, 2020 and ~~2021, respectively.~~

~~Rockland Electric Company (RECO)~~July 31, 2020. In addition, it suspended on-site NERC compliance audits until December 31, 2020.

~~n October 2019,~~

Also in March 2020, FERC announced several actions to ease regulatory obligations in response to the ~~New Jersey Division~~COVID-19 pandemic. These include postponement of ~~Rate Counsel staff submitted testimony~~certain filing deadlines and the suspension of all audit site visits and investigative testimony.

In April 2020, FERC announced it would expeditiously review and act on requests for relief in response to the COVID-19 pandemic, give priority to processing filings that contribute to the business continuity of regulated entities’ energy infrastructure and exercise prosecutorial discretion when addressing events arising during the COVID-19 pandemic. FERC also approved a blanket waiver of requirements in Open Access Transmission Tariffs that require entities to hold meetings in-person and to provide or obtain notarized documents. The blanket waivers were subsequently extended through January 29, 2021.

Gas Safety

In March 2020, the U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA) issued a notice staying enforcement of certain federal operator qualification, control room management and drug testing requirements during the COVID-19 pandemic. The notice also announced that PHMSA would exercise discretion in its overall enforcement of other parts of the pipeline safety regulations. The NYSPSC also provided guidance that it was staying enforcement of many of the same pipeline safety requirements identified in the March 2020 PHMSA notice.

In April 2020, the NYSPSC issued an order that extended the deadlines to complete certain gas inspections by all New ~~Jersey Board of Public Utilities proceeding in which RECO requested an electric rate increase, effective February~~York gas utilities, including CECONY and O&R, from April 1, 2020 to August 1, 2020. The ~~Division of Rate Counsel staff testimony supports an electric rate increase of $5.8 million reflecting, among other things, an 8.9 percent return on common equity~~deadlines were subsequently extended to September 2, 2020, and ~~a common equity ratio of 47.14 percent. In October 2019, RECO filed an update~~CECONY and O&R have taken all reasonable measures to the request it filed in May 2019. The company increased its requested February 2020 rate increase from $19.9 million to $20.3 million. The updated filing reflects an increase to the common equity ratio from 49.93 percent to 50.16 percent and a decrease in the return on common equity from 10.00 percent to 9.60 percent.complete such inspections.

Other Regulatory Matters

In August and November 2017, the NYSPSC issued orders in its proceeding investigating an April 21, 2017 Metropolitan Transportation Authority (MTA) subway power outage. The orders indicated that the investigation determined that the outage was caused by 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 was 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 reports with the NYSPSC on all of the company's activities related to the subway system. The company completed the required actions in 2018. The company’s costs related to this matter in excess of those reflected in its current electric rate plan were deferred as a regulatory asset and are addressed in the October 2019 Joint Proposal (see footnote (b) to the CECONY - Electric table under “Rate Plans,” above).

In August 2018, the NYSPSC ordered CECONY to begin on January 1, 2019 to credit the company's electric and gas customers, and to begin on October 1, 2018 to credit its steam customers, with the net benefits of the federal Tax Cuts and Jobs Act of 2017 (TCJA) as measured based on amounts reflected in its rate plans prior to the enactment of the TCJA in December 2017. The net benefits include the revenue requirement impact of the reduction in the corporate federal income tax rate to 21 percent, the elimination for utilities of bonus depreciation and the amortization of excess deferred federal income taxes.

CECONY, ~~estimates that its credit of net benefits of the TCJA to~~under its electric ~~gas and steam customers~~rate plan that was approved in ~~2019 will amount to $259 million, $113 million and $25 million, respectively. CECONY’s~~January 2020, is amortizing its TCJA net benefits prior to January 1, 2019 ~~and~~allocable to its electric customers ($377 million) over a three-year period, the “protected” portion of its net regulatory liability for future income taxes ~~including both~~related to certain accelerated tax depreciation benefits allocable to its electric customers ($1,663 million) over the remaining lives of the related assets and the remainder, or “unprotected” portion of the net regulatory liability allocable to its electric customers ($784 million) over a five-year period. CECONY, under its gas rate plan that was approved in January 2020, is amortizing its remaining TCJA net benefits prior to January 1, 2019 allocable to its gas customers ($63 million) over a two-year period, the protected ~~and unprotected portions,~~portion of its net regulatory liability for future income taxes allocable to ~~the company’s electric and~~its gas customers ~~are addressed in~~($725 million) over the ~~October 2019 Joint Proposal (see footnote (b)~~remaining lives of the related assets and the unprotected portion of the net regulatory liability allocable to ~~the CECONY - Electric and Gas tables under “Rate Plans,” above). CECONY’s~~its gas customers ($107 million) over a five-year period.

CECONY's net benefits prior to October 1, 2018 allocable to the company’s steam customers ($15 million) are being amortized over a three-year period. CECONY’s net regulatory liability for future income taxes, including both the protected and unprotected portions, allocable to the company’s steam customers ($185 million) is being amortized over the remaining lives of the related assets (with the amortization period for the unprotected portion subject to review in its next steam rate proceeding).

O&R, under its current electric and gas rate plans, has reflected its TCJA net benefits in its electric and gas rates beginning as of January 1, 2019. Under the rate plans, O&R is amortizing its net benefits prior to January 1, 2019 ($22 million) over a three-year period, the protected portion of its net regulatory liability for future income taxes ($123 million) over the remaining lives of the related assets and the unprotected portion ($30 million) over a fifteen-year period.

In January 2018, the NYSPSC issued an order initiating a focused operations audit of the income tax accounting of certain utilities, including CECONY and O&R. The Utilities are unable to estimate the amount or range of their

possible loss related to this matter. At September 30, ~~2019,~~2020, the Utilities had not accrued a liability related to this matter.

In March 2018, Winter Storms Riley and Quinn caused damage to the Utilities’ electric distribution systems and interrupted service to approximately 209,000 CECONY customers, 93,000 O&R customers and 44,000 RECO customers. At September 30, ~~2019,~~2020, CECONY's costs related to March 2018 storms, including Riley and Quinn, amounted to $134 million, including operation and maintenance expenses reflected in its electric rate plan ($15 million), operation and maintenance expenses charged against a storm reserve pursuant to its electric rate plan

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($ ($84 million), capital expenditures ($29 million) and removal costs ($6 million). At September 30, ~~2019,~~2020, O&R and RECO costs related to 2018 storms amounted to $43 million and $17 million, respectively, most of which were deferred as regulatory assets pursuant to their electric rate plans. In January 2019, O&R began recovering its deferred storm costs over a ~~six year~~six-year period in accordance with its New York electric rate plan. In February 2020, RECO began recovering its deferred storm costs over a four-year period in accordance with its New Jersey electric rate plan. The NYSPSC investigated the preparation and response to the storms by CECONY, O&R, and other New York electric utilities, including all aspects of their emergency response plans. In April 2019, following the issuance of a NYSPSC staff report on the investigation, the NYSPSC ordered the utilities to show cause why the NYSPSC should not commence a penalty action against them for violating their emergency response plans. ~~The Utilities are unable to estimate the amount or range of their possible loss~~At June 30, 2020, CECONY and O&R accrued $5.6 million and $0.85 million, respectively, related to this matter. ~~At September 30, 2019,~~In August 2020, the NYSPSC approved a July 2020 settlement agreement that provides for the Utilities ~~had not accrued a liability related~~ to ~~this matter.~~

In May 2018, FERC denied a complaint the NJBPU filed with FERC seeking the re-allocation to CECONY of certain PJM Interconnection LLC (PJM) transmission costs that had been allocated to the company prior to April 2017 when transmission service provided to the company pursuant to the PJM open access transmission tariff terminated. The transmission service terminated because the company did not exercise its option to continue the service following a series of requests PJM had submitted to FERC that substantially increased the chargesset aside $5.6 million and $0.85 million for the ~~transmission service.~~benefit of CECONY ~~challenged each of these requests. FERC 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 July 2018, FERC established a settlement proceeding relating to the allocation of PJM transmission costs. Under CECONY’sO&R electric ~~rate plan, unless and until changed by the NYSPSC, the company will recover all charges incurred associated with the transmission service.~~customers, respectively.

In July 2018, the NYSPSC commenced an investigation into the rupture of a CECONY steam main ~~(see Note H).~~located on Fifth Avenue and 21st Street in Manhattan. Debris from the incident included dirt and mud containing asbestos. The response to the incident required the closing of buildings and streets for various periods. The NYSPSC has commenced an investigation. As of September 30, 2020, with respect to the incident, the company incurred operating costs of $17 million for property damage, clean-up and other response costs and invested $9 million in capital and retirement costs. During the second quarter of 2020, the company accrued a $3 million liability related to this matter.

In March 2019, the NYSPSC ordered CECONY to show cause why the NYSPSC should not commence a penalty action and prudence proceeding against CECONY for alleged violations of gas operator qualification, performance, and inspection requirements. The company is seeking to resolve this matter through settlement negotiations with the NYSPSC staff. Any settlement would be subject to NYSPSC approval. The company is unable to estimate the amount or range of its possible loss related to this matter. At ~~September 30,~~December 31, 2019, the company had ~~not~~an accrued aregulatory liability related to this matter of $10 million, and at March 31, 2020, the company accrued an additional regulatory liability of $5 million. In April 2020, the NYSPSC approved a $15 million settlement agreement for the benefit of CECONY’s gas customers between CECONY and NYSPSC staff related to this matter.

On July 13, 2019, electric service was interrupted to approximately 72,000 CECONY customers on the west side of Manhattan. The NYSPSC and the Northeast Power Coordinating Council, a regional reliability entity, are investigating the July 13, 2019 power outage. ~~The NYSPSC is also investigating other CECONY power outages that occurred in July 2019.~~ Pursuant to the major outage reliability performance provisions of its electric rate plan, as a result of the July 13, 2019 power outage, ~~the company is subject to~~CECONY recorded a $5 million negative revenue ~~adjustment (which it recognized~~adjustment. The NYSPSC is also investigating other CECONY power outages that occurred in July 2019, primarily in the ~~third quarter~~Flatbush area of ~~2019).~~Brooklyn. Primarily due to these outages, pursuant to the rate plan’s annual non-network outage frequency and non-network outage duration reliability performance provisions, the company recorded a $10 million negative revenue adjustment at December 31, 2019. The company is unable to estimate the amount or range of its possible additional loss related to ~~the~~these power outages. At

In May 2020, an executive order was issued prohibiting the acquisition, importation, transfer or installation of certain bulk-power system electric equipment that is sourced from foreign adversaries. The scope and effect will be determined by regulations to be issued pursuant to the order. The Companies are unable to predict the impact on them of such regulations.

In August 2020, Tropical Storm Isaias caused significant damage to the Utilities’ electric distribution systems and interrupted service to approximately 330,000 CECONY electric customers and approximately 200,000 O&R electric customers. As of September 30, ~~2019,~~2020, CECONY incurred costs for Tropical Storm Isaias of $142 million (including $73 million of operation and maintenance expenses charged against a storm reserve pursuant to its electric rate plan, $56 million of capital expenditures and $13 million of operation and maintenance expenses). As of September 30, 2020, O&R incurred costs for Tropical Storm Isaias of $30 million (including $23 million of operation and maintenance expenses charged against a storm reserve pursuant to its New York electric rate plan and $7 million of capital expenditures). The Utilities’ electric rate plans provide for recovery of operating costs and capital

expenditures under different provisions. The Utilities’ incremental operating costs attributable to storms are to be deferred for recovery as a regulatory asset under their electric rate plans, while capital expenditures, up to specified levels, are reflected in rates under their electric rate plans. In addition, CECONY and O&R reserved for customer benefit of $5 million and $2 million, respectively, for estimated food and medicine spoilage claims as of September 30, 2020. The provisions of the ~~company had accrued~~Utilities’ New York electric rate plans that impose negative revenue adjustments for operating performance provide for exceptions for major storms and catastrophic events beyond the control of the companies, including natural disasters such as hurricanes and floods. In August 2020, the New York State Department of Public Service (NYSDPS) issued to each of CECONY and O&R a Notice of Apparent Violations Related to Tropical Storm Isaias. The notices, among other things, asserted that, based on NYSDPS' initial investigations, the Utilities were in apparent violation of the New York State Public Service Law for allegedly failing to follow the requirements of their emergency response plans and asserted that the NYSPSC may seek to commence administrative penalty proceedings against the Utilities. The notices also provided for several corrective actions that the Utilities have since implemented. The notices further asserted that: the NYSPSC is authorized to revoke or modify utility certificates to operate based on findings of repeated violations that demonstrate a failure of a utility corporation to continue to provide safe and adequate service; the NYSPSC has on other occasions deemed the Utilities’ response to a major storm event to be inadequate; and the NYSDPS intends to specifically determine as part of its ongoing investigations whether the Utilities’ alleged violations warrant revocation of their certificates to operate. The Companies are unable to estimate the amount or range of their possible additional loss in connection with the storm.

In September 2020, CECONY recorded a $5 million ~~liability related~~negative revenue adjustment pursuant to its electric rate plan’s annual network outage frequency reliability performance provision.

In October 2020, the NYSPSC issued an order instituting a proceeding to consider requiring New York’s large, investor-owned utilities, including CECONY and O&R, to annually disclose what risks climate change poses to their companies, investors and customers going forward. The order notes that some holding companies, including Con Edison, already disclose climate change risks at the holding company level, but states that the NYSPSC believes that climate-related risk disclosures should be issued specific to the ~~power outages.~~ operating companies in New York, such as CECONY and O&R, and that such climate-related risk disclosures should be included annually with the utilities’ financial reports. The NYSPSC solicited comments by November 16, 2020 on, among other things: the costs and benefits of providing climate-related risk disclosure; whether utility operating companies in New York should be required to make climate risk disclosure in annual financial statements, sustainability reports, or other public filings; which framework for such climate risk disclosure utility operating companies in New York should be required to adopt; and why and how utility operating companies should implement those recommended disclosures.

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Regulatory Assets and Liabilities

Regulatory assets and liabilities at September 30, ~~2019~~2020 and December 31, ~~2018~~2019 were comprised of the following items:


	Con Edison		CECONY			Con Edison		CECONY
(Millions of Dollars)	2019	2018	2019	2018	(Millions of Dollars)	2020	2019	2020	2019
Regulatory assets					Regulatory assets
Unrecognized pension and other postretirement costs	$1,919	$2,238	$1,816	$2,111	Unrecognized pension and other postretirement costs	$1,901	$2,541	$1,785	$2,403
Environmental remediation costs	774	810	685	716	Environmental remediation costs	723	732	645	647
Revenue taxes	315	291	302	278	Revenue taxes	345	321	331	308
Pension and other postretirement benefits deferrals					Pension and other postretirement benefits deferrals	274	71	237	47
Property tax reconciliation					Property tax reconciliation	238	219	235	210
MTA power reliability deferral	245	229	245	229	MTA power reliability deferral	200	248	200	248
Property tax reconciliation	160	101	150	86
Deferred storm costs					Deferred storm costs	158	77	60	0
Deferred derivative losses	99	17	90	11	Deferred derivative losses	156	83	145	76
COVID-19 pandemic deferrals					COVID-19 pandemic deferrals	102	0	101	0
System peak reduction and energy efficiency programs					System peak reduction and energy efficiency programs	95	131	94	130
Municipal infrastructure support costs	80	67	80	67	Municipal infrastructure support costs	67	75	67	75
Pension and other postretirement benefits deferrals	77	73	55	56
Deferred storm costs	69	76	—	—
System peak reduction and energy efficiency programs	60	72	59	70
Brooklyn Queens demand management program					Brooklyn Queens demand management program	36	39	36	39
Meadowlands heater odorization project	35	36	35	36	Meadowlands heater odorization project	33	35	33	35
Brooklyn Queens demand management program	35	39	35	39
Gate station upgrade project					Gate station upgrade project	26	19	26	19
Recoverable REV demonstration project costs					Recoverable REV demonstration project costs	24	21	22	19
Unamortized loss on reacquired debt	30	36	28	34	Unamortized loss on reacquired debt	22	28	21	26
Preferred stock redemption	22	23	22	23	Preferred stock redemption	21	22	21	22
Recoverable REV demonstration project costs	21	20	18
Gate station upgrade project	19	17	19	17
Non-wire alternative projects					Non-wire alternative projects	15	14	15	14
Workers’ compensation	5	5	5		Workers’ compensation	0	3	0	3
O&R transition bond charges	—	2	—	—
Other	194	142	187	127	Other	219	180	204	166
Regulatory assets – noncurrent	4,159	4,294	3,831	3,923	Regulatory assets – noncurrent	4,655	4,859	4,278	4,487
Deferred derivative losses	68	36	57	29	Deferred derivative losses	116	128	104	113
Recoverable energy costs	15	40	12	35	Recoverable energy costs	50	0	40	0
Regulatory assets – current	83	76	69	64	Regulatory assets – current	166	128	144	113
Total Regulatory Assets	$4,242	$4,370	$3,900	$3,987	Total Regulatory Assets	$4,821	$4,987	$4,422	$4,600
Regulatory liabilities					Regulatory liabilities
Future income tax	$2,448	$2,515	$2,302	$2,363	Future income tax	$2,270	$2,426	$2,123	$2,275
Allowance for cost of removal less salvage	952	928	808	790	Allowance for cost of removal less salvage	1,038	989	885	843
TCJA net benefits*	462	434	444	411	TCJA net benefits*	337	471	327	454
Net proceeds from sale of property					Net proceeds from sale of property	152	173	152	173
Net unbilled revenue deferrals	145	117	145	117	Net unbilled revenue deferrals	148	199	148	199
Pension and other postretirement benefit deferrals					Pension and other postretirement benefit deferrals	79	75	43	46
Energy efficiency portfolio standard unencumbered funds	123	127	119	122	Energy efficiency portfolio standard unencumbered funds	65	122	62	118
Pension and other postretirement benefit deferrals	67	62	41	40
System benefit charge carrying charge					System benefit charge carrying charge	60	48	54	44
Property tax refunds	45	45	45		Property tax refunds	35	45	34	45
Net proceeds from sale of property	44	6	44	6
System benefit charge carrying charge	43	27	38	24
Unrecognized other postretirement costs					Unrecognized other postretirement costs	33	9	0	0
BQDM and REV Demo reconciliations					BQDM and REV Demo reconciliations	26	27	24	26
Settlement of gas proceedings					Settlement of gas proceedings	22	10	22	10
Sales and use tax refunds					Sales and use tax refunds	17	8	17	8
Earnings sharing - electric, gas and steam	26	36	19	27	Earnings sharing - electric, gas and steam	16	22	10	15
BQDM and REV Demo reconciliations	25	18	24	18
Settlement of prudence proceeding	15	37	15	37	Settlement of prudence proceeding	6	8	6	8
Settlement of gas proceedings	11	15	11	15
Unrecognized other postretirement costs	5	7	—	7
Carrying charges on repair allowance and bonus depreciation	4	21	4	21
New York State income tax rate change	3	17	3	17
Base rate change deferrals	1	10	1	10
Property tax reconciliation	—	36	—	36
Other	171	183	137	152	Other	265	195	227	163
Regulatory liabilities – noncurrent	4,590	4,641	4,200	4,258	Regulatory liabilities – noncurrent	4,569	4,827	4,134	4,427
Deferred derivative gains					Deferred derivative gains	57	34	54	34
Refundable energy costs	36	31	8		Refundable energy costs	33	44	8	12
Deferred derivative gains	33	30	32	29
Revenue decoupling mechanism	24	53	16	36	Revenue decoupling mechanism	0	24	0	17
Regulatory liabilities – current	93	114	56	73	Regulatory liabilities – current	90	102	62	63
Total Regulatory Liabilities	$4,683	$4,755	$4,256	$4,331	Total Regulatory Liabilities	$4,659	$4,929	$4,196	$4,490

* See "Other Regulatory Matters," above.

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Note C – Capitalization

In February 2019, Con Edison borrowed $825 million under a two-year variable-rate term loan to fund the repayment of a six-month variable-rate term loan. In June 2019, Con Edison pre-paid $150 million of the amount borrowed.

~~In March 2019,~~January 2020, Con Edison issued ~~5,649,369~~1,050,000 shares of its common stock for ~~$425~~$88 million upon physical settlement of the remaining shares subject to its ~~November 2018~~May 2019 forward sale ~~agreements.~~agreement.

In ~~April 2019, CECONY redeemed at maturity $475 million of 6.65 percent 10-year debentures.~~

In May 2019, Con Edison entered into a forward sale agreement relating to 5,800,000 shares of its common stock. In June 2019, the company issued 4,750,000 shares for $400 million upon physical settlement of shares subject to the forward sale agreement. At September 30, 2019, 1,050,000 shares remain subject to the forward sale agreement. The company expects the remaining shares under the forward sale agreement to settle by December 28, 2020. The company or the forward purchaser may accelerate the forward sale agreement upon the occurrence of certain events. On a settlement date, if the company decides to physically settle, it will issue shares to the forward purchaser at the then-applicable forward sale price. The forward sale price is equal to $84.83 per share subject to adjustment on a daily basis based on a floating interest rate factor less a spread and will be subject to decrease by amounts related to expected dividends. The remaining shares under the forward sale agreement will be physically settled, unless the company elects cash or net share settlement (which it has the right to do, subject to certain conditions, other than in limited circumstances). In the event the company elects to cash settle or net share settle, the settlement amount will be generally related to (1)(a) the market value of the common stock during the unwind period under the forward sale agreement minus (b) the applicable forward sale price; multiplied by (2) the number of shares subject to such cash settlement or net share settlement. If this settlement amount is a negative number, the forward purchaser will pay the company the absolute value of that amount or deliver to the company a number of shares having a value equal to the absolute value of such amount. If this settlement amount is a positive number, the company will pay the forward purchaser that amount or deliver to the forward purchaser a number of shares having a value equal to such amount.

~~In May 2019,~~March 2020, CECONY issued ~~$700~~$600 million aggregate principal amount of ~~4.125~~3.35 percent debentures, due ~~2049.~~

~~In May 2019, O&R’s New Jersey utility subsidiary paid the remaining $1 million principal amount of Transition Bonds issued in 2004.~~

In May 2019, a Con Edison Development subsidiary borrowed $464 million at a variable-rate, due 2026, secured by equity interests in solar electric production projects. The company has entered into fixed-rate interest rate swaps in connection with this borrowing. See Note L.

~~In September 2019, O&R agreed to issue in November 2019 $43~~2030 and $1,000 million aggregate principal amount of ~~3.73~~3.95 percent debentures, due ~~2049 and to issue in December 2019 $44~~2050.

In June 2020, CECONY redeemed at maturity $350 million of 4.45 percent 10-year debentures.

In September 2020, O&R issued $35 million aggregate principal amount of ~~2.94~~2.02 percent debentures, due ~~2029~~2030 and ~~$38~~$40 million aggregate principal amount of ~~3.46~~3.24 percent debentures, due ~~2039.~~2050.

In October 2019, a Con Edison Development subsidiary issued $303 million aggregate principal amount of 3.82 percent senior notes, due 2038, secured by the company's Panoche Valley and Wistaria Solar renewable electric production projects.

The carrying amounts and fair values of long-term debt at September 30, ~~2019~~2020 and December 31, ~~2018~~2019 were:


(Millions of Dollars)	2020		2019
Long-Term Debt (including current portion) (a)	Carrying Amount	Fair Value	Carrying Amount	Fair Value
Con Edison	$21,171	$25,440	$19,973	$22,738
CECONY	$16,197	$20,184	$14,964	$17,505

(Millions of Dollars) 2019 2018
Long-Term Debt (including current portion) (a)
Carrying
Amount
Fair
Value
Carrying
Amount
Fair
Value
Con Edison $19,451 $22,412 $18,145 $18,740
CECONY $14,374 $17,047 $14,151 $14,685
(a)Amounts shown are net of unamortized debt expense and unamortized debt discount of $192 million and $168 million for Con Edison and CECONY, respectively, as of September 30, 2020 and $178 million and $151 million for Con Edison and CECONY, respectively, as of December 31, 2019.


~~(a)~~	Amounts shown are net of unamortized debt expense and unamortized debt discount of $167 million and $141 million for Con Edison and CECONY, respectively, as of September 30, 2019 and $185 million and $139 million for Con Edison and CECONY, respectively, as of December 31, 2018.

The fair values of the Companies' long-term debt have been estimated primarily using available market information and at September 30, ~~2019~~2020 are classified as Level 2 (see Note M)N).

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At December 31, 2018, the Clean Energy Businesses had $2,076 million of non-recourse project debt secured by the pledge of the applicable renewable energy production projects, of which $1,965 million was included in long-term debt and $111 million was included in long-term debt due within one year in Con Edison's consolidated balance sheet. As a result of the January 2019 PG&E bankruptcy (see "Long-Lived and Intangible Assets" in Note A), during the first quarter of 2019, Con Edison reclassified on its consolidated balance sheet the PG&E-related non-recourse project debt that was included in long-term debt to long-term debt due within one year. At ~~September 30,~~December 31, 2019, long-term debt due within one year included ~~$1,012~~$1,001 million of PG&E-related project debt. ~~The lenders for~~At June 30, 2020, due to the likelihood of PG&E’s plan of reorganization becoming effective, the company’s PG&E-related non-recourse project debt ~~may, upon written notice, declare principal~~with a maturity longer than one year ($898 million) was reclassified from long-term debt due within one year to long-term debt. In July 2020, PG&E’s plan of reorganization became effective, and ~~interest on~~PG&E assumed all of the PG&E-related project debt to be due and payable immediately and, if such amounts are not timely paid, foreclose on the related projects. The company is seeking to negotiate agreements with the PG&E-related project debt lenders pursuant to which the lenders would defer exercising these remedies. &E PPAs.

Note D – Short-Term Borrowing

At September 30, ~~2019,~~2020, Con Edison had ~~$1,300~~$1,009 million of commercial paper outstanding of which ~~$930~~$991 million was outstanding under CECONY’s program. The weighted average interest rate at September 30, ~~2019~~2020 was ~~2.3~~0.2 percent for both Con Edison and CECONY. At December 31, ~~2018,~~2019, Con Edison had ~~$1,741~~$1,692 million of commercial paper outstanding of which ~~$1,192~~$1,137 million was outstanding under CECONY’s program. The weighted average interest rate at December 31, ~~2018~~2019 was ~~3.0~~2.0 percent for both Con Edison and CECONY.

At September 30, ~~2019~~2020 and December 31, ~~2018,~~2019, 0 loans were outstanding under the Companies' December 2016 credit agreement (Credit Agreement). An immaterial amount of letters of credit were outstanding under the Credit Agreement as of September 30, ~~2019~~2020 and December 31, ~~2018.~~ 2019.

In July 2020, Con Edison borrowed $820 million pursuant to an April ~~2019,~~2020 credit agreement that was amended in June 2020 (as amended, the ~~termination date~~Supplemental Credit Agreement). Con Edison used the proceeds from the borrowing for general corporate purposes, including repayment of short-term debt bearing interest at variable rates. Pursuant to the Supplemental Credit Agreement, the borrowing bears interest at a variable rate and was converted to a term loan that matures on March 29, 2021 (“Term Loan”). Con Edison has the option to prepay the Term Loan. Subject to certain exceptions, the Term Loan under the Supplemental Credit Agreement is subject to mandatory prepayment with the net cash proceeds of debt or equity issuances by Con Edison or its non-regulated subsidiaries. At September 30, 2020, Con Edison had $820 million of borrowings outstanding under the Term Loan.

Pursuant to the Supplemental Credit Agreement, upon a change of control of, or upon an event of default by Con Edison, the lenders may declare the Term Loan immediately due and payable. Events of Default include Con Edison exceeding at any time a ratio of consolidated debt to consolidated total capital of 0.65 to 1; having liens on its assets

in an aggregate amount exceeding 5 percent of its consolidated total capital, subject to certain exceptions; Con Edison or any of its subsidiaries failing to make one or more payments in respect of other material financial obligations (in excess of an aggregate $150 million of debt or derivative obligations other than non-recourse debt) when due or within any applicable grace period; the occurrence of an event or condition which results in the acceleration of the ~~Credit Agreement was extended from December 2022~~maturity of any material debt (in excess of an aggregate $150 million of debt other than non-recourse debt) or enables the holders of such debt to ~~December 2023 with respect to banks with aggregate commitments~~accelerate the maturity thereof; and other customary events of ~~$2,200 million.~~default.

Note E – Pension Benefits

Total Periodic Benefit Cost

The components of the Companies’ total periodic benefit cost for the three and nine months ended September 30, ~~2019~~2020 and ~~2018~~2019 were as follows:


	For the Three Months Ended September 30,
	Con Edison		CECONY
(Millions of Dollars)	2020	2019	2020	2019
Service cost – including administrative expenses	$73	$62	$69	$58
Interest cost on projected benefit obligation	137	150	129	141
Expected return on plan assets	(258)	(247)	(245)	(234)
Recognition of net actuarial loss	175	130	165	123
Recognition of prior service credit	(4)	(4)	(5)	(5)
TOTAL PERIODIC BENEFIT COST	$123	$91	$113	$83
Cost capitalized	(34)	(26)	(32)	(24)
Reconciliation to rate level	(62)	(5)	(59)	(4)
Total expense recognized	$27	$60	$22	$55


	For the Three Months Ended September 30,					For the Nine Months Ended September 30,
	Con Edison		CECONY			Con Edison		CECONY
(Millions of Dollars)	2019	2018	2019	2018	(Millions of Dollars)	2020	2019	2020	2019
Service cost – including administrative expenses	$62	$72	$58	$68	Service cost – including administrative expenses	$220	$187	$206	$175
Interest cost on projected benefit obligation	150	140	141	131	Interest cost on projected benefit obligation	412	451	387	423
Expected return on plan assets	(247)	(258)	(234)	(245)	Expected return on plan assets	(775)	(741)	(735)	(702)
Recognition of net actuarial loss	130	172	123	163	Recognition of net actuarial loss	524	389	496	369
Recognition of prior service cost/(credit)	(4)	(4)	(5)	(5)
Recognition of prior service credit					Recognition of prior service credit	(12)	(13)	(15)	(15)
TOTAL PERIODIC BENEFIT COST	$91	$122	$83	$112	TOTAL PERIODIC BENEFIT COST	$369	$273	$339	$250
Cost capitalized	(26)	(32)	(24)	(30)	Cost capitalized	(98)	(80)	(93)	(76)
Reconciliation to rate level	(5)	(22)	(4)	(24)	Reconciliation to rate level	(188)	(12)	(179)	(10)
Total expense recognized	$60	$68	$55	$58	Total expense recognized	$83	$181	$67	$164

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For the Nine Months Ended September 30,
Con Edison CECONY
(Millions of Dollars) 2019 2018 2019 2018
Service cost – including administrative expenses $187 $218 $175 $204
Interest cost on projected benefit obligation 451 420 423 394
Expected return on plan assets (741) (775) (702) (734)
Recognition of net actuarial loss 389 516 369 488
Recognition of prior service cost/(credit) (13) (13) (15) (15)
TOTAL PERIODIC BENEFIT COST $273 $366 $250 $337
Cost capitalized (80) (94) (76) (89)
Reconciliation to rate level (12) (68) (10) (74)
Total expense recognized $181 $204 $164 $174

Components of net periodic benefit cost other than service cost are presented outside of operating income on the Companies' consolidated income statements, and only the service cost component is eligible for capitalization. Accordingly, the service cost component is included in the line "Other operations and maintenance" and the non-service cost components are included in the line "Other deductions" in the Companies' consolidated income statements.

Expected Contributions

Based on estimates as of September 30, ~~2019,~~2020, the Companies expect to make contributions to the pension plans during ~~2019~~2020 of ~~$350~~$474 million (of which ~~$318~~$434 million is to be made by CECONY). The Companies’ policy is to fund the total periodic benefit cost of the qualified plan to the extent tax deductible and to also contribute to the non-qualified supplemental plans. During the first nine months of ~~2019,~~2020, the Companies contributed ~~$346~~$470 million to the pension plans, ~~(of~~of which ~~$315~~$430 million was made by ~~CECONY).~~CECONY. CECONY also contributed ~~$15~~$18 million to the external trust for its non-qualified supplemental plan.

Note F – Other Postretirement Benefits

Total Periodic Benefit Cost

The components of the Companies’ total periodic other postretirement benefit cost/(credit) for the three and nine months ended September 30, ~~2019~~2020 and ~~2018~~2019 were as follows:


	For the Three Months Ended September 30,
	Con Edison		CECONY
(Millions of Dollars)	2020	2019	2020	2019
Service cost	$5	$4	$4	$3
Interest cost on accumulated other postretirement benefit obligation	9	11	8	9
Expected return on plan assets	(16)	(16)	(14)	(14)
Recognition of net actuarial loss/(gain)	3	(2)	3	(2)
Recognition of prior service credit	(1)	(1)	0	0
TOTAL PERIODIC OTHER POSTRETIREMENT BENEFIT COST/(CREDIT)	$0	$(4)	$1	$(4)
Cost capitalized	(2)	(1)	(2)	(2)
Reconciliation to rate level	2	3	0	2
Total credit recognized	$0	$(2)	$(1)	$(4)


	For the Three Months Ended September 30,					For the Nine Months Ended September 30,
	Con Edison		CECONY			Con Edison		CECONY
(Millions of Dollars)	2019	2018	2019	2018	(Millions of Dollars)	2020	2019	2020	2019
Service cost	$4	$5	$3	$3	Service cost	$16	$13	$12	$9
Interest cost on accumulated other postretirement benefit obligation	11	11	9	9	Interest cost on accumulated other postretirement benefit obligation	28	33	23	27
Expected return on plan assets	(16)	(18)	(14)	(16)	Expected return on plan assets	(49)		(41)	(41)
Recognition of net actuarial loss/(gain)	(2)	2	(2)	1	Recognition of net actuarial loss/(gain)	34	(6)	32	(7)
Recognition of prior service cost/(credit)	(1)	(2)	—	(1)
Recognition of prior service credit					Recognition of prior service credit	(3)	(2)	(1)	(1)
TOTAL PERIODIC OTHER POSTRETIREMENT BENEFIT COST/(CREDIT)	$(4)	$(2)	$(4)	$(4)	TOTAL PERIODIC OTHER POSTRETIREMENT BENEFIT COST/(CREDIT)	$26	$(11)	$25	$(13)
Cost capitalized	(1)	(2)	(2)	(1)	Cost capitalized	(7)	(6)	(5)	(4)
Reconciliation to rate level	3	2	2	2	Reconciliation to rate level	(19)	10	(24)	6
Total expense/(credit) recognized	$(2)		$(4)	$(3)
Total credit recognized					Total credit recognized	$0	$(7)	$(4)	$(11)

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For the Nine Months Ended September 30,
Con Edison CECONY
(Millions of Dollars) 2019 2018 2019 2018
Service cost $13 $15 $9 $10
Interest cost on accumulated other postretirement benefit obligation 33 32 27 26
Expected return on plan assets (49) (55) (41) (47)
Recognition of net actuarial loss/(gain) (6) 6 (7) 2
Recognition of prior service cost/(credit) (2) (5) (1) (2)
TOTAL PERIODIC OTHER POSTRETIREMENT BENEFIT COST/(CREDIT) $(11) $(7) $(13) $(11)
Cost capitalized (6) (6) (4) (4)
Reconciliation to rate level 10 6 6 7
Total expense/(credit) recognized $(7) $(7) $(11) $(8)

For information about the presentation of the components of other postretirement benefit costs, see Note E.

Contributions

During the first nine months of ~~2019,~~2020, the Companies contributed $7$3 million ~~(substantially all~~(all of which was made by CECONY) to the other postretirement benefit plans. The Companies' policy is to fund the total periodic benefit cost of the plans to the extent tax deductible.

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 September 30, ~~2019~~2020 and December 31, ~~2018~~2019 were as follows:

Con Edison CECONY
(Millions of Dollars) 2019 2018 2019 2018
Accrued Liabilities:
Manufactured gas plant sites $679 $689 $596 $603
Other Superfund Sites 88 90 88 90
Total $767 $779 $684 $693
Regulatory assets $774 $810 $685 $716


	Con Edison		CECONY
(Millions of Dollars)	2020	2019	2020	2019
Accrued Liabilities:
Manufactured gas plant sites	$625	$640	$547	$561
Other Superfund Sites	101	94	100	93
Total	$726	$734	$647	$654
Regulatory assets	$723	$732	$645	$647

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

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determined. As investigations progress and information pertaining to the required remediation becomes available, the Utilities expect that additional liability may be accrued, the amount of which is not presently determinable but 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 for the three and nine months ended September 30, ~~2019~~2020 and ~~2018~~2019 were as follows:


	For the Three Months Ended September 30,
	Con Edison		CECONY
(Millions of Dollars)	2020	2019	2020	2019
Remediation costs incurred	$8	$4	$8	$2

For the Three Months Ended September 30,
Con Edison CECONY
(Millions of Dollars) 2019 2018 2019 2018
Remediation costs incurred $4 $8 $2 $5


	For the Nine Months Ended September 30,
	Con Edison		CECONY
(Millions of Dollars)	2020	2019	2020	2019
Remediation costs incurred	$17	$15	$16	$10

For the Nine Months Ended September 30,
Con Edison CECONY
(Millions of Dollars) 2019 2018 2019 2018
Remediation costs incurred $15 $17 $10 $14

Insurance and other third-party recoveries received by Con Edison or CECONY were immaterial for the three and nine months ended September 30, ~~2019~~2020 and ~~2018.~~2019.

In ~~2018,~~2019, 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 $2.8 billion and $2.6 billion, 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, which are many, have been resolved without any payment by the Utilities, or for amounts that were not, in the aggregate, material to them. The amounts specified in all the remaining thousands of suits total billions of dollars; however, the Utilities believe that these amounts are greatly exaggerated, based on the disposition of previous claims. At September 30, ~~2019,~~2020, Con Edison and CECONY have accrued their estimated aggregate undiscounted potential liabilities for these suits and additional suits that may be brought over the next 15 years as shown in the following table. These estimates were based upon a combination of modeling, historical data analysis and risk factor assessment. Courts have begun, and unless otherwise determined on appeal may continue, to apply different standards for determining liability in asbestos suits than the standard that applied historically. As a result, the Companies currently believe that there is a reasonable possibility of an exposure to loss in excess of the liability accrued for the suits. The Companies are unable to estimate the amount or range of such loss. In addition, certain current and former employees have claimed or are claiming workers’ compensation benefits based on alleged disability from exposure to asbestos. CECONY is permitted to defer as regulatory assets (for subsequent recovery through rates) costs incurred for its asbestos lawsuits and workers’ compensation claims.

The accrued liability for asbestos suits and workers’ compensation proceedings (including those related to asbestos exposure) and the amounts deferred as regulatory assets for the Companies at September 30, ~~2019~~2020 and December 31, ~~2018~~2019 were as follows:


	Con Edison		CECONY
(Millions of Dollars)	2020	2019	2020	2019
Accrued liability – asbestos suits	$8	$8	$7	$7
Regulatory assets – asbestos suits	$8	$8	$7	$7
Accrued liability – workers’ compensation	$75	$78	$70	$73
Regulatory assets – workers’ compensation	$0	$3	$0	$3

Con Edison CECONY
(Millions of Dollars) 2019 2018 2019 2018
Accrued liability – asbestos suits $8 $8 $7 $7
Regulatory assets – asbestos suits $8 $8 $7 $7
Accrued liability – workers’ compensation $79 $79 $75 $75
Regulatory assets – workers’ compensation $5 $5 $5 $5

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Note H – Other Material Contingencies

Manhattan Explosion and Fire

On March 12, 2014, 2 multi-use five-story tall buildings located on Park Avenue between 116^th and 117^th 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. NaN people died and more than 50 people were injured. Additional buildings were also damaged. The National Transportation Safety Board (NTSB) investigated. The parties to the investigation included the company, the City of New York, the Pipeline and Hazardous Materials Safety Administration and the NYSPSC. In June 2015, the NTSB issued a final report concerning the incident, its probable cause and safety recommendations. The NTSB determined that the probable cause of the incident was (1) the failure of a defective fusion joint at a service tee (which joined a plastic service line to a plastic distribution main) installed by the company that allowed gas to leak from the distribution main and migrate into a building where it ignited and (2) a breach in a City sewer line that allowed groundwater and soil to flow into the sewer, resulting in a loss of support for the distribution main, which caused it to sag and overstressed the defective fusion joint. The NTSB also made safety recommendations, including recommendations to the company that addressed its procedures for the preparation and examination of plastic fusions, training of its staff on conditions for notifications to the City’s Fire Department and extension of its gas main isolation valve installation program. In February 2017, the NYSPSC approved a settlement agreement with the company related to the NYSPSC's investigations of the incident and the practices of qualifying persons to perform plastic fusions. Pursuant to the agreement, the company is providing $27 million of future benefits to customers (for which it has accrued a regulatory liability) and will not recover from customers $126 million of costs for gas emergency response activities that it had previously incurred and expensed. Approximately 80 suits are pending against the company seeking generally unspecified damages and, in some cases, punitive damages, for wrongful death, personal injury, property damage and business interruption. The company ~~has~~ notified its insurers of the incident and believes that the policies in force at the time of the incident will cover the company’s costs, in excess of a required retention (the amount of which is not material), to satisfy any liability it may have for damages in connection with the incident. ~~The~~In October 2020, the company ~~is unable to estimate the amount or range of its possible loss~~accrued a $40 million liability for damages ~~related to the incident. At September 30, 2019, the company had not accrued~~and a ~~liability for damages~~$40 million insurance receivable related to the incident.

~~Manhattan Steam Main Rupture~~

~~In July 2018, a CECONY steam main located on Fifth Avenue and 21~~^st Street in Manhattan ruptured. Debris from the incident included dirt and mud containing asbestos. The response to the incident required the closing of buildings and streets for various periods. The NYSPSC has commenced an investigation. As of September 30, 2019, with respect to the incident, the company incurred estimated operating costs of $16 million for property damage, clean- up and other response costs and invested $10 million in capital and retirement costs. The company has notified its insurers of the incident and believes that the policies currently in force will cover the company’s costs, in excess of a required retention (the amount of which is not material), to satisfy any liability it may have for damages to others in connection with the incident. The company is unable to estimate the amount or range of its possible loss related to the incident. At September 30, 2019, the company had not accrued a liability related to the incident.

Other Contingencies

For information about the PG&E bankruptcy, see "Long-Lived and Intangible Assets" in Note A and Note C. Also, for additional contingencies, see "Other Regulatory Matters" in Note B and “Uncertain Tax Positions” in Note J.

Guarantees

Con Edison and its subsidiaries have entered into various agreements providing financial or performance assurance primarily to third parties on behalf of their subsidiaries. Maximum amounts guaranteed by Con Edison under these agreements totaled ~~$1,954~~$1,895 million and ~~$2,439~~$1,831 million at September 30, ~~2019~~2020 and December 31, ~~2018,~~2019, respectively.

~~Table of Contents~~

A summary, by type and term, of Con Edison’s total guarantees under these agreements at September 30, ~~2019~~2020 is as follows:


Guarantee Type	0 – 3 years	4 – 10 years	> 10 years	Total
	(Millions of Dollars)
Con Edison Transmission	$378	$170	$0	$548
Energy transactions	433	68	220	721
Renewable electric production projects	171	9	376	556
Other	70	0	0	70
Total	$1,052	$247	$596	$1,895

Guarantee Type 0 – 3 years 4 – 10 years
> 10 years
Total
(Millions of Dollars)
Con Edison Transmission $162 $411
$—
$573
Energy transactions 501 29 194 724
Renewable electric production projects 124 9 454 587
Other 70 —
—
70
Total $857 $449 $648 $1,954

Con Edison Transmission — Con Edison has guaranteed payment by CET Electric of the contributions CET Electric agreed to make to New York Transco LLC (NY Transco). CET Electric owns a 45.7 percent interest in NY Transco. In April 2019, the New York Independent System Operator (NYISO) selected a transmission project that was jointly proposed by National Grid and NY Transco. The siting, construction and operation of the project will require approvals and permits from appropriate governmental agencies and authorities, including the NYSPSC. The NYISO indicated it will work with the developers to enter into agreements for the development and operation of the projects, including a schedule for entry into service by December 2023. Guarantee ~~amount~~amounts shown includes the maximum possible required amount of CET Electric’s contributions for this project as calculated based on the assumptions that the project is completed at 175 percent of its estimated costs and NY Transco does not use any debt financing for the project. Also included within the table above are guarantees for $25 million from Con Edison on behalf of CET Gas in relation to Mountain Valley Pipeline (MVP), LLC, a company developing a proposed gas transmission project in West Virginia and Virginia.

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~~the Clean Energy Businesses guarantee payments on behalf of their wholly-owned subsidiaries associated with their investment in, or development for others of, solar and wind energy facilities.

Other — Other guarantees include $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.~~the Clean Energy Businesses.

Note I – Leases

In January 2019, the Companies adopted Accounting Standards Update (ASU) No. 2016-02, “Leases (Topic 842),” including the amendments thereto, using a modified retrospective transition method of adoption that required no prior period adjustments or charges to retained earnings for cumulative impact. The standard supersedes the lease requirements within ASC Topic 840, “Leases.”

The Companies lease land, office buildings, equipment and access rights to support electric transmission facilities. Upon adoption of Topic 842, the Companies recognized lease right-of-use assets and lease liabilities on their consolidated balance sheets for virtually all of their leases (other than leases that meet the definition of a short-term lease, the expense for which was immaterial). A lease right-of-use asset represents a right to use an identifiable underlying asset and obtain substantially all of the economic benefits from the use of that asset for the lease term. A lease liability represents an obligation to make lease payments arising from the lease. Leases are classified as either operating leases or finance leases. Operating leases are included in operating lease right-of-use asset and operating lease liabilities on the Companies’ consolidated balance sheets. 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. Lessor accounting is similar to the previous model, but updated to align with ASC Topic 606 “Revenue from Contracts with Customers."

The Companies elected the following practical expedients: (1) a package of practical expedients that allows the Companies to not reassess: (a) whether expired or existing contracts contained leases; (b) the lease classification

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for expired or existing leases and (c) the initial direct costs for existing leases; (2) for all underlying asset classes, an expedient that allows the Companies to not apply the recognition requirements to short-term leases and an expedient that allows the Companies to account for lease and associated non-lease components as a single lease component; (3) an expedient that allows the use of hindsight to determine lease term; and (4) an expedient that allows the Companies 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 Topic 840.

The Companies, upon adoption of Topic 842 recognized, and for new operating leases at commencement date 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. As most of the Companies’ leases do not provide an implicit rate, the Companies used their collateralized incremental borrowing rate based on the information available at the commencement date to determine the present value of future payments. Most of the Companies’ leases have remaining lease terms of one year to 35 years, and may include options to renew or extend the leases for up to five years at the fair rental value. The Companies' lease terms may include options to renew, extend or terminate the lease when it is reasonably certain that the Companies will exercise that option. There were no leases with material variable lease payments or residual value guarantees.

Operating lease cost and cash paid for amounts included in the measurement of lease liabilities for the three and nine months ended September 30, 2020 and 2019 were as follows:


	For the Three Months Ended September 30,
	Con Edison		CECONY
(Millions of Dollars)	2020	2019	2020	2019
Operating lease cost	$21	$21	$16	$16
Operating lease cash flows	$10	$10	$6	$5

For the Three Months Ended September 30, 2019
(Millions of Dollars) Con Edison CECONY
Operating lease cost
$21

$16
Operating lease cash flows
$10

$5

For the Nine Months Ended September 30, 2019
(Millions of Dollars) Con Edison CECONY
Operating lease cost
$62

$48
Operating lease cash flows
$27

$13

~~Table~~


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2020	2019	2020	2019	2020	2019	2020	2019
(Millions of Dollars, except per share amounts)	Net Income for Common Stock		Earnings per Share		Net Income for Common Stock		Earnings per Share
CECONY	$405	$414	$1.21	$1.25	$963	$978	$2.88	$2.99
O&R	27	25	0.08	0.07	57	60	0.17	0.18
Clean Energy Businesses (a)	56	22	0.17	0.07	8	(19)	0.03	(0.06)
Con Edison Transmission	15	14	0.04	0.04	42	38	0.13	0.11
Other (b)	(10)	(2)	(0.03)	(0.01)	(12)	(9)	(0.04)	(0.02)
Con Edison (c)	$493	$473	$1.47	$1.42	$1,058	$1,048	$3.17	$3.20

(a)Net income for common stock from the Clean Energy Businesses for the three and nine months ended September 30, 2020 includes $5 million or $0.01 a share and $(60) million or $(0.18) a share, respectively, of ~~Contents~~net after-tax mark-to-market gains/(losses) and reflects $7 million or $0.02 a share (after-tax) and $29 million or $0.08 a share (after-tax), respectively, of income attributable to the non-controlling interest of a tax equity investor in renewable electric production projects accounted for under the HLBV method of accounting. Net income for common stock from the Clean Energy Businesses for the three and nine months ended September 30, 2019 includes $(17) million or $(0.05) a share and $(41) million or $(0.13) a share, respectively, of net after-tax mark-to-market losses and reflects $23 million or $0.07 a share (after-tax) and $60 million or $0.18 a share (after-tax), respectively, of income attributable to the non-controlling interest of a tax equity investor in renewable electric production projects accounted for under the HLBV method of accounting. See Note O to the Third Quarter Financial Statements.

(b)Other includes parent company and consolidation adjustments.

(c)Earnings per share on a diluted basis were $1.47 a share and $1.42 a share for the three months ended September 30, 2020 and 2019, respectively, and $3.16 a share and $3.19 a share for the nine months ended September 30, 2020 and 2019, respectively.

For the Three Months Ended September 30, For the Nine Months Ended September 30,
2019 2018 2019 2018 2019 2018 2019 2018
(Millions of Dollars, except per share amounts) Net Income for Common Stock Earnings
per Share Net Income for Common Stock Earnings
per Share
CECONY $414 $431 $1.25 $1.38 $978 $969 $2.99 $3.12
O&R 25 21 0.07 0.07 60 52 0.18 0.17
Clean Energy Businesses (a) 22 27 0.07 0.10 (19) 58 (0.06) 0.19
Con Edison Transmission 14 13 0.04 0.04 38 35 0.11 0.11
Other (b) (2) (57) (0.01) (0.19) (9) (63) (0.02) (0.21)
Con Edison (c) $473 $435 $1.42 $1.40 $1,048 $1,051 $3.20 $3.38

~~(a)~~

Net income for common stock from the Clean Energy Businesses for the three and nine months ended September 30, 2019 includes $(17) million or $(0.05) a share and $(41) million or $(0.13) a share, respectively, of net after-tax mark-to-market losses and reflects $23 million or $0.07 a share (after-tax) and $60 million or $0.18 a share (after-tax), respectively, of income attributable to the non-controlling interest of a tax equity investor in renewable electric production projects accounted for under the HLBV method of accounting. See Note N to the Third Quarter Financial Statements. Net income for common stock from the Clean Energy Businesses for the three and nine months ended September 30, 2018 includes $(2) million or $0.00 a share and $(3) million or $(0.01) a share, respectively, of net after-tax mark-to-market losses.

~~(b)~~

Other includes parent company and consolidation adjustments. Includes $(42) million or $(0.14) a share of income tax expense resulting from a re-measurement of the company's deferred tax assets and liabilities following the issuance of proposed regulations relating to the TCJA for the three and nine months ended September 30, 2018. See Note I to the Third Quarter Financial Statements. Also includes for the three and nine months ended September 30, 2018 $10 million (net of tax) or $0.03 a share of transaction costs related to a Con Edison Development subsidiary’s agreement to purchase Sempra Solar Holdings, LLC.


~~(c)~~	Earnings per share on a diluted basis were $1.42 a share and $1.39 a share for the three months ended September 30, 2019 and 2018, respectively, and $3.19 a share and $3.37 a share for the nine months ended September 30, 2019 and 2018, respectively.

The following tables present the estimated effect of major factors on earnings per share and net income for common stock for the three and nine months ended September 30, ~~2019~~2020 as compared with the ~~2018 periods.~~2019 period.


Variation for the Three Months Ended September 30, 2020 vs. 2019
	Earnings per Share	Net Income for Common Stock (Millions of Dollars)
CECONY (a)
Changes in rate plans	$(0.02)	$(6)	Primarily reflects lower non-weather related steam net revenues due to lower usage by customers.

Operations and maintenance expenses	0.26	85	Reflects lower costs for pension and other postretirement benefits of $0.12 a share, which are reconciled under the rate plans, lower regulatory assessments and fees of $0.09 a share, which are collected in revenues from customers, and the deferral in September 2020, under the legislative, regulatory and related actions provisions of the company's electric and gas rate plans, of the previously recorded reserve increases to the allowance for uncollectible accounts associated with the Coronavirus Disease 2019 (COVID-19) pandemic of $0.02 a share, offset in part by estimated food and medicine spoilage claims related to outages caused by Tropical Storm Isaias of $(0.01) a share.
Depreciation, property taxes and other tax matters	(0.24)	(79)	Reflects higher depreciation and amortization expense of $(0.12) a share and higher property taxes of $(0.10) a share, both of which are recoverable under the rate plans and the absence in 2020 of a reduction in the sales and use tax reserve upon conclusion of the audit assessment of $(0.02) a share.
Other	(0.04)	(9)	Primarily reflects foregone revenues from the suspension of customers' late payment charges and certain other fees associated with the COVID-19 pandemic of $(0.05) a share and the dilutive effect of Con Edison's stock issuances of $(0.01) a share.
Total CECONY	(0.04)	(9)
O&R (a)
Changes in rate plans	0.01	2	Reflects an electric base rate increase under the company's rate plans.
Operations and maintenance expenses	—	1	Reflects the deferral in September 2020, under the legislative, regulatory and related actions provision of the company's New York electric rate plan, of the previously recorded reserve increase to the allowance for uncollectible accounts associated with the COVID-19 pandemic, offset by estimated food and medicine spoilage claims related to outages caused by Tropical Storm Isaias.
Depreciation, property taxes and other tax matters	—	(1)

Total O&R	0.01	2
Clean Energy Businesses
Operating revenues less energy costs	—	2
Operations and maintenance expenses	(0.01)	(4)	Primarily reflects timing of maintenance costs.
Depreciation and amortization	(0.01)	(4)	Reflects an increase in renewable electric production projects in operation during 2020.
Net interest expense	0.09	29	Primarily reflects lower unrealized losses on interest rate swaps in the 2020 period.
HLBV effects	0.05	16	Primarily reflects lower losses from tax equity projects in the 2020 period.
Other	(0.02)	(5)	Primarily reflects the absence of a prior period adjustment related to research & development credits recorded in 2019.
Total Clean Energy Businesses	0.10	34
Con Edison Transmission	—	1
Other, including parent company expenses	(0.02)	(8)	Primarily reflects higher New York State income tax.
Total Reported (GAAP basis)	$0.05	$20

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.

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Variation for the Nine Months Ended September 30, 2020 vs. 2019
	Earnings per Share	Net Income for Common Stock (Millions of Dollars)
CECONY (a)
Changes in rate plans	$0.07	$24	Primarily reflects higher gas net base revenues due to gas base rates increase in January 2020 under the company's gas rate plan.
Weather impact on steam revenues	(0.06)	(20)	Reflects the impact of warmer winter weather in the 2020 period.
Operations and maintenance expenses	0.69	227	Reflects lower costs for pension and other postretirement benefits of $0.41 a share, which are reconciled under the rate plans, lower regulatory assessments and fees that are collected in revenues from customers of $0.23 a share, lower stock-based compensation of $0.04 a share and lower healthcare costs of $0.02 a share, offset in part by estimated food and medicine spoilage claims related to outages caused by Tropical Storm Isaias of $(0.01) a share.
Depreciation, property taxes and other tax matters	(0.65)	(209)	Reflects higher depreciation and amortization expense of $(0.38) a share and higher property taxes of $(0.26) a share, both of which are recoverable under the rate plans, the absence in 2020 of a reduction in the sales and use tax reserve upon conclusion of the audit assessment of $(0.02) a share, offset in part by the Employee Retention Tax Credit under the CARES Act of $0.01 a share.
Other	(0.16)	(37)	Primarily reflects foregone revenues from the suspension of customers' late payment charges and certain other fees associated with the COVID-19 pandemic of $(0.10) a share and the dilutive effect of Con Edison's stock issuances of $(0.06) a share.
Total CECONY	(0.11)	(15)
O&R (a)
Changes in rate plans	0.04	11	Reflects electric and gas base rate increases of $0.03 a share and $0.01 a share, respectively, under the company's rate plans.
Operations and maintenance expenses	(0.02)	(5)	Primarily reflects incremental costs associated with the COVID-19 pandemic and estimated food and medicine spoilage claims related to outages caused by Tropical Storm Isaias.
Depreciation, property taxes and other tax matters	(0.01)	(4)	Reflects higher depreciation and amortization expense, offset in part by the Employee Retention Tax Credit under the CARES Act.
Other	(0.02)	(5)	Primarily reflects higher costs associated with components of pension and other postretirement benefits other than service cost of $(0.01) a share.
Total O&R	(0.01)	(3)
Clean Energy Businesses
Operating revenues less energy costs	0.01	4	Reflects higher revenues from renewable electric production projects of $0.05 a share, offset in part by lower energy services revenues of $(0.04) a share.
Operations and maintenance expenses	0.01	2	Primarily reflects lower energy services costs.
Depreciation and amortization	(0.01)	(3)	Reflects an increase in renewable electric production projects in operation during 2020.
Net interest expense	(0.03)	(9)	Primarily reflects higher unrealized losses on interest rate swaps in the 2020 period.
HLBV effects	0.10	31	Primarily reflects lower losses from tax equity projects in the 2020 period.
Other	0.01	2	Primarily reflects re-measurement of deferred tax assets and the Employee Retention Tax Credit under the CARES Act.
Total Clean Energy Businesses	0.09	27
Con Edison Transmission	0.02	4	Primarily reflects lower operations and maintenance expenses and higher allowance for funds used during construction (AFUDC) income from Mountain Valley Pipeline, LLC.
Other, including parent company expenses	(0.02)	(3)	Primarily reflects higher New York State income tax.
Total Reported (GAAP basis)	$(0.03)	$10

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.

Variation for the Three Months Ended September 30, 2019 vs. 2018
Earnings
per Share Net Income for Common Stock (Millions of Dollars)
CECONY (a)
Changes in rate plans $0.11 $35 Reflects higher electric and gas net base revenues of $0.19 a share and $0.01 a share, respectively, due primarily to electric and gas base rates increases in January 2019 under the company's rate plans.
Weather impact on steam revenues —
(1)
Operations and maintenance expenses (0.11) (34) Reflects higher costs for pension and other postretirement benefits of $(0.04) a share, stock-based compensation of $(0.03) a share and uncollectibles of $(0.02) a share.
Depreciation, property taxes and other tax matters (0.10) (31) Reflects higher property taxes of $(0.06) a share and higher depreciation and amortization expense of $(0.06) a share, offset, in part, by the reduction in the sales and use tax reserve upon conclusion of the audit assessment of $0.02 a share.
Other (0.03) 14 Reflects primarily the dilutive effect of Con Edison's stock issuances of $(0.09) a share, offset, in part, by lower costs associated with components of pension and other postretirement benefits other than service cost of $0.05 a share.
Total CECONY (0.13) (17)
O&R (a)

Changes in rate plans 0.03 11 Reflects primarily an electric base rate increase under the company's new rate plan, effective January 1, 2019.
Operations and maintenance expenses —
(1)
Depreciation, property taxes and other tax matters (0.01) (2) Reflects higher depreciation and amortization expense.
Other (0.02) (4) Reflects primarily the dilutive effect of Con Edison's stock issuances of $(0.01) a share.
Total O&R —
4
Clean Energy Businesses

Operating revenues less energy costs 0.27 85 Reflects primarily higher revenues from renewable electric production projects resulting from the December 2018 acquisition of Sempra Solar Holdings, LLC, including the consolidation of certain jointly-owned projects that were previously accounted for as equity investments of $0.30 a share, and lower gas purchased for resale due to lower purchased volume of $0.12 a share, offset, in part, by lower wholesale revenues of $(0.13) a share.
Operations and maintenance expenses (0.01) (2) Reflects higher costs associated with additional renewable electric production projects in operation resulting from the December 2018 acquisition of Sempra Solar Holdings, LLC. of $(0.03) a share, offset, in part, by lower energy services costs of $0.02 a share.
Depreciation and amortization (0.08) (26) Reflects an increase in renewable electric production projects resulting from the December 2018 acquisition of Sempra Solar Holdings, LLC.
Net interest expense (0.12) (35) Reflects primarily an increase in debt resulting from the December 2018 acquisition of Sempra Solar Holdings, LLC.
HLBV effects (0.07) (23)
Other (0.02) (4) Reflects primarily the absence in 2019 of equity income from certain jointly-owned projects that were accounted for as equity investments in 2018 but consolidated after the December 2018 acquisition of Sempra Solar Holdings, LLC.
Total Clean Energy Businesses (0.03) (5)
Con Edison Transmission —
1 Reflects income from equity investments.
Other, including parent company expenses 0.18 55
Total Reported (GAAP basis) $0.02 $38

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.

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Variation for the Nine Months Ended September 30, 2019 vs. 2018
Earnings
per Share Net Income for Common Stock (Millions of Dollars)
CECONY (a)

Changes in rate plans $0.59 $185 Reflects higher electric and gas net base revenues of $0.42 a share and $0.12 a share, respectively, due primarily to electric and gas base rates increases in January 2019 under the company's rate plans and growth in the number of gas customers of $0.02 a share.
Weather impact on steam revenues (0.05) (15) Reflects the impact of warmer winter weather in 2019.
Operations and maintenance expenses (0.23) (71) Reflects higher costs for pension and other postretirement benefits of $(0.11) a share, stock-based compensation of $(0.07) a share and regulatory assessments and fees that are collected in revenues from customers of $(0.05) a share.
Depreciation, property taxes and other tax matters (0.38) (121) Reflects higher property taxes of $(0.19) a share, higher depreciation and amortization expense of $(0.17) a share and the absence of New York State sales and use tax refunds received in 2018 of $(0.04) a share; offset, in part, by the reduction in the sales and use tax reserve upon conclusion of the audit assessment of $0.02 a share.
Other (0.06) 31 Reflects primarily the dilutive effect of Con Edison's stock issuances of $(0.16) a share and higher interest expense on long-term debt of $(0.09) a share, offset, in part, by lower costs associated with components of pension and other postretirement benefits other than service cost of $0.14 a share.
Total CECONY (0.13) 9
O&R (a)

Changes in rate plans 0.03 10 Reflects an electric base rate increase of $0.05 a share, offset, in part, by a gas base rate decrease of $(0.02) a share under the company's new rate plans, effective January 1, 2019.
Operations and maintenance expenses 0.02 6 Reflects primarily a reduction of a regulatory asset associated with certain site investigation and environmental remediation costs in 2018.
Depreciation, property taxes and other tax matters (0.02) (5) Reflects higher depreciation and amortization expense.
Other (0.02) (3) Reflects primarily the dilutive effect of Con Edison's stock issuances of $(0.01) a share.
Total O&R 0.01 8
Clean Energy Businesses

Operating revenues less energy costs 0.44 137 Reflects primarily higher revenues from renewable electric production projects resulting from the December 2018 acquisition of Sempra Solar Holdings, LLC, including the consolidation of certain jointly-owned projects that were previously accounted for as equity investments of $0.68 a share, offset, in part, by lower engineering, procurement and construction services revenues of $(0.22) a share.
Operations and maintenance expenses 0.14 43 Reflects primarily lower engineering, procurement and construction costs of $0.20 a share and lower energy services costs of $0.02 a share, offset, in part, by higher costs associated with additional renewable electric production projects in operation resulting from the December 2018 acquisition of Sempra Solar Holdings, LLC. of $(0.08) a share.
Depreciation and amortization (0.27) (84) Reflects an increase in renewable electric production projects resulting from the December 2018 acquisition of Sempra Solar Holdings, LLC.
Net interest expense (0.31) (96) Reflects primarily an increase in debt resulting from the December 2018 acquisition of Sempra Solar Holdings, LLC.
HLBV effects (0.18) (60)
Other (0.07) (17) Reflects primarily the absence in 2019 of equity income from certain jointly-owned projects that were accounted for as equity investments in 2018 but consolidated after the December 2018 acquisition of Sempra Solar Holdings, LLC.
Total Clean Energy Businesses (0.25) (77)
Con Edison Transmission —
3 Reflects income from equity investments.
Other, including parent company expenses 0.19 54
Total Reported (GAAP basis) $(0.18) $(3)

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.

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The Companies’ other operations and maintenance expenses for the three and nine months ended September 30, ~~2019~~2020 and ~~2018~~2019 were as follows:


	For the Three Months Ended September 30,		For the Nine Months Ended September 30,
(Millions of Dollars)	2020	2019	2020	2019
CECONY
Operations	$423	$414	$1,210	$1,190
Pensions and other postretirement benefits	(20)	34	(83)	100
Health care and other benefits	49	46	115	126
Regulatory fees and assessments (a)	94	134	253	356
Other	51	84	219	250
Total CECONY	597	712	1,714	2,022
O&R	79	81	232	225
Clean Energy Businesses	59	53	165	168
Con Edison Transmission	2	2	8	7
Other (b)	(1)	(1)	(3)	—
Total other operations and maintenance expenses	$736	$847	$2,116	$2,422

(a)Includes Demand Side Management, System Benefit Charges and Public Service Law 18A assessments which are collected in revenues.

For the Three Months Ended September 30, For the Nine Months Ended September 30,
(Millions of Dollars) 2019 2018 2019
2018
CECONY
Operations $414 $393 $1,190 $1,186
Pensions and other postretirement benefits 34 18 100 53
Health care and other benefits 46 46 126 132
Regulatory fees and assessments (a) 134 132 356 335
Other 84 77 250 220
Total CECONY 712 666 2,022 1,926
O&R 81 80 225 234
Clean Energy Businesses (b) 53 50 168 226
Con Edison Transmission 2 3 7 7
Other (c) (1) (2) —
(4)
Total other operations and maintenance expenses $847 $797 $2,422 $2,389
(b)Includes parent company and consolidation adjustments.


~~(a)~~	~~Includes Demand Side Management, System Benefit Charges and Public Service Law 18A assessments which are collected in revenues.~~


~~(b)~~	~~The decrease in operations and maintenance for the nine months ended September 30, 2019 compared with the 2018 period is due primarily to lower engineering, procurement and construction costs.~~


~~(c)~~	~~Includes parent company and consolidation adjustments.~~

A discussion of the results of operations by principal business segment for the three and nine months ended September 30, ~~2019~~2020 and ~~2018~~2019 follows. For additional business segment financial information, see Note KL to the Third Quarter Financial Statements.

5460

~~Table of Contents~~

The Companies’ results of operations for the three months ended September 30, ~~2019~~2020 and ~~2018~~2019 were as follows:


	CECONY		O&R		Clean Energy Businesses		Con Edison Transmission		Other (a)		Con Edison (b)
(Millions of Dollars)	2020	2019	2020	2019	2020	2019	2020	2019	2020	2019	2020	2019
Operating revenues	$2,872	$2,877	$238	$241	$222	$247	$1	$1	$—	$(1)	$3,333	$3,365
Purchased power	447	423	56	61	—	—	—	—	—	(1)	503	483
Fuel	24	31	—	—	—	—	—	—	—	—	24	31
Gas purchased for resale	38	52	9	10	8	36	—	—	—	—	55	98
Other operations and maintenance	597	712	79	81	59	53	2	2	(1)	(1)	736	847
Depreciation and amortization	401	346	23	22	58	53	—	—	—	—	482	421
Taxes, other than income taxes	643	590	22	21	5	5	1	—	2	2	673	618

Operating income	722	723	49	46	92	100	(2)	(1)	(1)	(1)	860	867
Other income less deductions	(38)	(9)	(4)	(3)	3	1	27	27	(1)	(2)	(13)	14
Net interest expense	182	181	10	10	22	61	4	7	8	3	226	262
Income before income tax expense	502	533	35	33	73	40	21	19	(10)	(6)	621	619
Income tax expense	97	119	8	8	8	(12)	6	5	—	(4)	119	116
Net income	$405	$414	$27	$25	$65	$52	$15	$14	$(10)	$(2)	$502	$503
Income attributable to non-controlling interest	—	—	—	—	9	30	—	—	—	—	9	30
Net income for common stock	$405	$414	$27	$25	$56	$22	$15	$14	$(10)	$(2)	$493	$473

(a)Includes parent company and consolidation adjustments.

(b)Represents the consolidated results of operations of Con Edison and its businesses.

CECONY O&R Clean Energy Businesses Con Edison
Transmission Other (a) Con Edison (b)
(Millions of Dollars) 2019
2018
2019
2018
2019
2018
2019
2018
2019
2018
2019 2018
Operating revenues $2,877 $2,899 $241 $246 $247 $181 $1 $1 $(1) $1 $3,365 $3,328
Purchased power 423 472 61 73 —
—
—
—
(1) —
483 545
Fuel 31 39 —
—
—
—
—
—
—
—
31 39
Gas purchased for resale 52 66 10 12 36 85 —
—
—
1 98 164
Other operations and maintenance 712 666 81 80 53 50 2 3 (1) (2) 847 797
Depreciation and amortization 346 322 22 19 53 18 —
—
—
1 421 360
Taxes, other than income taxes 590 570 21 20 5 3 —
—
2 4 618 597
Operating income 723 764 46 42 100 25 (1) (2) (1) (3) 867 826
Other income less deductions (9) (33) (3) (5) 1 18 27 24 (2) (15) 14 (11)
Net interest expense 181 175 10 10 61 13 7 5 3 2 262 205
Income before income tax expense 533 556 33 27 40 30 19 17 (6) (20) 619 610
Income tax expense 119 125 8 6 (12) 3 5 4 (4) 37 116 175
Net income $414 $431 $25 $21 $52 $27 $14 $13 $(2) $(57) $503 $435
Income attributable to non-controlling interest

—
—
—
—
30 —
—
—
—
—
30 —
Net income for common stock $414 $431 $25 $21 $22 $27 $14 $13 $(2) $(57) $473 $435


~~(a)~~	~~Includes parent company and consolidation adjustments.~~


~~(b)~~	~~Represents the consolidated results of operations of Con Edison and its businesses.~~

~~Table of Contents~~

CECONY


	For the Three Months Ended September 30, 2020				For the Three Months Ended September 30, 2019
(Millions of Dollars)	Electric	Gas	Steam	2020 Total	Electric	Gas	Steam	2019 Total	2020-2019 Variation
Operating revenues	$2,562	$259	$51	$2,872	$2,544	$275	$58	$2,877	$(5)
Purchased power	443	—	4	447	418	—	5	423	24
Fuel	18	—	6	24	27	—	4	31	(7)
Gas purchased for resale	—	38	—	38	—	52	—	52	(14)
Other operations and maintenance	469	87	41	597	565	102	45	712	(115)
Depreciation and amortization	305	74	22	401	266	58	22	346	55
Taxes, other than income taxes	514	94	35	643	465	87	38	590	53
Operating income	$813	$(34)	$(57)	$722	$803	$(24)	$(56)	$723	$(1)

For the Three Months Ended
September 30, 2019

For the Three Months Ended
September 30, 2018


(Millions of Dollars) Electric
Gas
Steam
2019 Total Electric
Gas
Steam
2018 Total 2019-2018
Variation
Operating revenues $2,544 $275 $58 $2,877 $2,571 $264 $64 $2,899 $(22)
Purchased power 418 —
5 423 465 —
7 472 (49)
Fuel 27 —
4 31 34 —
5 39 (8)
Gas purchased for resale —
52 —
52 —
66 —
66 (14)
Other operations and maintenance 565 102 45 712 518 101 47 666 46
Depreciation and amortization 266 58 22 346 248 52 22 322 24
Taxes, other than income taxes 465 87 38 590 456 79 35 570 20
Operating income $803 $(24) $(56) $723 $850 $(34) $(52) $764 $(41)

Electric

CECONY’s results of electric operations for the three months ended September 30, ~~2019~~2020 compared with the ~~2018~~2019 period were as follows:


	For the Three Months Ended
(Millions of Dollars)	September 30, 2020	September 30, 2019	Variation
Operating revenues	$2,562	$2,544	$18
Purchased power	443	418	25
Fuel	18	27	(9)
Other operations and maintenance	469	565	(96)
Depreciation and amortization	305	266	39
Taxes, other than income taxes	514	465	49
Electric operating income	$813	$803	$10

For the Three Months Ended

(Millions of Dollars) September 30, 2019 September 30, 2018 Variation
Operating revenues $2,544 $2,571 $(27)
Purchased power 418 465 (47)
Fuel 27 34 (7)
Other operations and maintenance 565 518 47
Depreciation and amortization 266 248 18
Taxes, other than income taxes 465 456 9
Electric operating income $803 $850 $(47)

CECONY’s electric sales and deliveries for the three months ended September 30, ~~2019~~2020 compared with the ~~2018~~2019 period were:

Millions of kWh Delivered Revenues in Millions (a)

For the Three Months Ended

For the Three Months Ended

Description September 30, 2019
September 30, 2018
Variation
Percent
Variation

September 30, 2019 September 30, 2018 Variation
Percent
Variation

Residential/Religious (b) 3,687
3,777
(90)
(2.4 )% $923 $988 $(65) (6.6 )%
Commercial/Industrial 2,831
2,706
125
4.6
557 542 15 2.8
Retail choice customers 7,339
7,756
(417)
(5.4 ) 854 910 (56) (6.2 )
NYPA, Municipal Agency and other sales 2,756
2,758
(2)
(0.1 ) 219 225 (6) (2.7 )
Other operating revenues (c) —
—
—
—
(9) (94) 85 (90.4 )
Total 16,613
16,997
(384)
(2.3 )% (d) $2,544 $2,571 $(27) (1.1 )%


~~(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 the revenue decoupling mechanism current asset or regulatory liability and changes in regulatory assets and liabilities in accordance with other provisions of the company’s rate plans.


~~(d)~~	After adjusting for variations, primarily weather and billing days, electric delivery volumes in CECONY’s service area increased 0.7 percent in the three months ended September 30, 2019 compared with the 2018 period.


	Millions of kWh Delivered						Revenues in Millions (a)
	For the Three Months Ended						For the Three Months Ended
Description	September 30, 2020	September 30, 2019	Variation	Percent Variation			September 30, 2020	September 30, 2019	Variation	Percent Variation
Residential/Religious (b)	4,001	3,687	314	8.5	%		$995	$923	$72	7.8	%
Commercial/Industrial	2,627	2,831	(204)	(7.2)			556	557	(1)	(0.2)
Retail choice customers	6,294	7,339	(1045)	(14.2)			784	854	(70)	(8.2)
NYPA, Municipal Agency and other sales	2,532	2,756	(224)	(8.1)			217	219	(2)	(0.9)
Other operating revenues (c)	—	—	—	—			10	(9)	19	Large
Total	15,454	16,613	(1,159)	(7.0)	%	(d)	$2,562	$2,544	$18	0.7	%

56(a)

~~Table~~Revenues from electric sales are subject to a revenue decoupling mechanism, as a result of ~~Contents~~which delivery revenues generally are not affected by changes in delivery volumes from levels assumed when rates were approved.

~~Operating~~(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 the company’s rate plans.

(d)After adjusting for variations, primarily weather and billing days, electric delivery volumes in CECONY’s service area decreased ~~$27 million~~8.7 percent in the three months ended September 30, ~~2019~~2020 compared with the ~~2018 period due primarily to lower purchased power expenses ($47 million) and fuel expenses ($7 million), offset, in part, by an increase in revenues from the rate plan ($21 million).~~2019 period. See “Coronavirus Disease 2019 (COVID-19) Impacts,” above.

~~Purchased power~~Operating revenues expenses decreased $47 million in the three months ended September 30, 2019 compared with the 2018 period due to lower unit costs ($82 million), offset, in part, by higher purchased volumes ($35 million).

~~Fuel~~ expenses decreased $7 million in the three months ended September 30, 2019 compared with the 2018 period due to lower unit costs ($8 million), offset, in part, by higher purchased volumes from the company's electric generating facilities ($1 million).

~~Other operations and maintenance~~ expenses increased $47 million in the three months ended September 30, 2019 compared with the 2018 period due primarily to higher costs for pension and other postretirement benefits ($18 million), stock-based compensation ($9 million), reserve for uncollectibles ($6 million) and municipal infrastructure support ($3 million).

~~Depreciation and amortization~~ increased $18 million in the three months ended September 30, ~~2019~~2020 compared with the ~~2018~~2019 period primarily due to higher purchased power expenses ($25 million), offset in part by lower fuel expenses ($9 million).

Purchased power expenses increased $25 million in the three months ended September 30, 2020 compared with the 2019 period due ~~primarily~~ to higher ~~electric utility plant balances.~~unit costs ($40 million), offset in part by lower purchased volumes ($15 million).

~~Taxes, other than income taxes~~Fuel ~~increased~~expenses decreased $9 million in the three months ended September 30, ~~2019~~2020 compared with the ~~2018~~2019 period due to lower unit costs ($6 million) and purchased volumes from the company's electric generating facilities ($3 million).

Other operations and maintenance expenses decreased $96 million in the three months ended September 30, 2020 compared with the 2019 period primarily due to lower costs for pension and other postretirement benefits ($43 million), lower surcharges for assessments and fees that are collected in revenues from customers ($34 million) and the deferral in September 2020, under the legislative, regulatory and related actions provision of the company's electric rate plan, of the previously recorded increases to the allowance for uncollectible accounts associated with the COVID-19 pandemic ($6 million after-tax), offset in part by estimated food and medicine spoilage claims related to outages caused by Tropical Storm Isaias ($5 million).

Depreciation and amortization increased $39 million in the three months ended September 30, 2020 compared with the 2019 period primarily due to higher electric utility plant balances and higher depreciation rates.

Taxes, other than income taxes increased $49 million in the three months ended September 30, 2020 compared with the 2019 period primarily due to higher property taxes ($1936 million) ~~and payroll~~, lower deferral of under-collected property taxes ($26 million), ~~offset,~~absence in ~~part, by the~~2020 of a reduction in the sales and use tax reserve upon conclusion of the audit assessment ($5 million), and higher ~~deferral of under-collected property taxes ($4 million) and lower~~ state and local taxes ($23 million)., offset in part by lower payroll taxes ($1 million) that includes the Employee Retention Tax Credit created under the CARES Act. See “Coronavirus Disease 2019 (COVID-19) Impacts - Impact of CARES Act on Accounting for Income Taxes,” above.

Gas

CECONY’s results of gas operations for the three months ended September 30, ~~2019~~2020 compared with the ~~2018~~2019 period were as follows:


	For the Three Months Ended
(Millions of Dollars)	September 30, 2020	September 30, 2019	Variation
Operating revenues	$259	$275	$(16)
Gas purchased for resale	38	52	(14)
Other operations and maintenance	87	102	(15)
Depreciation and amortization	74	58	16
Taxes, other than income taxes	94	87	7
Gas operating income	$(34)	$(24)	$(10)

For the Three Months Ended

(Millions of Dollars) September 30, 2019 September 30, 2018 Variation
Operating revenues $275 $264 $11
Gas purchased for resale 52 66 (14)
Other operations and maintenance 102 101 1
Depreciation and amortization 58 52 6
Taxes, other than income taxes 87 79 8
Gas operating income $(24) $(34) $10

CECONY’s gas sales and deliveries, excluding off-system sales, for the three months ended September 30, ~~2019~~2020 compared with the ~~2018~~2019 period were:


	Thousands of Dt Delivered						Revenues in Millions (a)
	For the Three Months Ended						For the Three Months Ended
Description	September 30, 2020	September 30, 2019	Variation	Percent Variation			September 30, 2020	September 30, 2019	Variation	Percent Variation
Residential	4,314	4,032	282	7.0	%		$117	$103	$14	13.6	%
General	3,504	4,097	(593)	(14.5)			35	45	(10)	(22.2)
Firm transportation	8,668	9,071	(403)	(4.4)			70	71	(1)	(1.4)
Total firm sales and transportation	16,486	17,200	(714)	(4.2)		(b)	222	219	3	1.4
Interruptible sales (c)	1,882	1,974	(92)	(4.7)			4	6	(2)	(33.3)
NYPA	13,701	12,329	1,372	11.1			1	1	—	—
Generation plants	19,658	19,558	100	0.5			7	7	—	—
Other	4,457	4,604	(147)	(3.2)			6	6	—	—
Other operating revenues (d)	—	—	—	—			19	36	(17)	(47.2)
Total	56,184	55,665	519	0.9	%		$259	$275	$(16)	(5.8)	%

5763

~~Table~~

(a)Revenues from gas sales are subject to a weather normalization clause and a revenue decoupling mechanism, as a result of ~~Contents~~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 decreased 1.4 percent in the three months ended September 30, 2020 compared with the 2019 period. See “Coronavirus Disease 2019 (COVID-19) Impacts,” above.

(c)Includes 676 thousand and 1,064 thousand of Dt for the 2020 and 2019 periods, respectively, which are also reflected in firm transportation and other.

Thousands of Dt Delivered Revenues in Millions (a)

For the Three Months Ended

For the Three Months Ended

Description September 30, 2019
September 30, 2018
Variation
Percent
Variation

September 30, 2019 September 30, 2018 Variation
Percent
Variation

Residential 4,032
4,469
(437 ) (9.8 )% $103 $118 $(15) (12.7 )%
General 4,097
4,191
(94 ) (2.2 ) 45 54 (9) (16.7 )
Firm transportation 9,071
9,211
(140 ) (1.5 ) 71 71 —
—
Total firm sales and transportation 17,200
17,871
(671 ) (3.8 ) (b) 219 243 (24) (9.9 )
Interruptible sales (c) 1,974
1,481
493
33.3
6 6 —
—
NYPA 12,329
12,815
(486 ) (3.8 ) 1 1 —
—
Generation plants 19,558
29,128
(9,570 ) (32.9 ) 7 9 (2) (22.2 )
Other 4,604
3,953
651
16.5
6 6 —
—
Other operating revenues (d) —
—
—
—
36 (1) 37 Large
Total 55,665
65,248
(9,583 ) (14.7 )% $275 $264 $11 4.2 %
(d)Other gas operating revenues generally reflect changes in the revenue decoupling mechanism and weather normalization clause current asset or regulatory liability and changes in regulatory assets and liabilities in accordance with other provisions of the company’s rate plans.


~~(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 12.1 percent in the three months ended September 30, 2019 compared with the 2018 period, reflecting primarily increased volumes attributable to the growth in the number of gas customers.


~~(c)~~	~~Includes 1,064 thousands and 681 thousands of Dt for the 2019 and 2018 periods, respectively, which 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 the company’s rate plans.

Operating revenues ~~increased $11~~decreased $16 million in the three months ended September 30, ~~2019~~2020 compared with the ~~2018~~2019 period primarily due ~~primarily~~ to ~~an increase in revenues from the rate plan ($28 million), offset, in part, by~~ lower gas purchased for resale ~~expense ($14 million).~~expense.

Gas purchased for resale decreased $14 million in the three months ended September 30, ~~2019~~2020 compared with the ~~2018~~2019 period due to lower unit costs ($1110 million) and purchased volumes ($34 million).

Other operations and maintenance expenses ~~increased $1~~decreased $15 million in the three months ended September 30, ~~2019~~2020 compared with the ~~2018~~2019 period primarily due ~~primarily~~ to ~~higher stock-based compensation~~lower costs for pension and other postretirement benefits ($27 million) ~~and~~, lower municipal infrastructure support costs ($24 million), ~~offset,~~the deferral in ~~part, by surcharges~~September 2020, under the legislative, regulatory and related actions provision of the company's gas rate plan, of the previously recorded increases to the allowance for ~~assessments~~uncollectible accounts associated with the COVID-19 pandemic ($2 million after-tax) and ~~fees that are collected in revenues from customers~~lower reserve for injuries and damages ($31 million).

Depreciation and amortization increased $6$16 million in the three months ended September 30, ~~2019~~2020 compared with the ~~2018~~2019 period primarily due ~~primarily~~ to higher gas utility plant ~~balances.~~balances and higher depreciation rates.

Taxes, other than income taxes increased $8$7 million in the three months ended September 30, ~~2019~~2020 compared with the ~~2018~~2019 period primarily due ~~primarily~~ to higher property taxes ($~~7 million) and lower deferral of under-collected property taxes ($2~~12 million), ~~offset,~~absence in ~~part, by the~~2020 of a reduction in the sales and use tax reserve upon conclusion of the audit assessment ($1 million) and higher state and local taxes ($1 million), offset in part by higher deferral of under-collected property taxes ($7 million).

Steam

CECONY’s results of steam operations for the three months ended September 30, ~~2019~~2020 compared with the ~~2018~~2019 period were as follows:


	For the Three Months Ended
(Millions of Dollars)	September 30, 2020	September 30, 2019	Variation
Operating revenues	$51	$58	$(7)
Purchased power	4	5	(1)
Fuel	6	4	2
Other operations and maintenance	41	45	(4)
Depreciation and amortization	22	22	—
Taxes, other than income taxes	35	38	(3)
Steam operating income	$(57)	$(56)	$(1)

~~Table of Contents~~

For the Three Months Ended

(Millions of Dollars) September 30, 2019 September 30, 2018 Variation
Operating revenues $58 $64 $(6)
Purchased power 5 7 (2)
Fuel 4 5 (1)
Other operations and maintenance 45 47 (2)
Depreciation and amortization 22 22 —
Taxes, other than income taxes 38 35 3
Steam operating income $(56) $(52) $(4)

CECONY’s steam sales and deliveries for the three months ended September 30, ~~2019~~2020 compared with the ~~2018~~2019 period were:


	Millions of Pounds Delivered						Revenues in Millions
	For the Three Months Ended						For the Three Months Ended
Description	September 30, 2020	September 30, 2019	Variation	Percent Variation			September 30, 2020	September 30, 2019	Variation	Percent Variation
General	7	6	1	16.7	%		$1	$2	$(1)	(50.0)	%
Apartment house	617	722	(105)	(14.5)			12	13	(1)	(7.7)
Annual power	2,023	2,443	(420)	(17.2)			33	36	(3)	(8.3)
Other operating revenues (a)	—	—	—	—			5	7	(2)	(28.6)
Total	2,647	3,171	(524)	(16.5)	%	(b)	$51	$58	$(7)	(12.1)	%

(a)Other steam operating revenues generally reflect changes in regulatory assets and liabilities in accordance with the company’s rate plan.

Millions of Pounds Delivered Revenues in Millions

For the Three Months Ended

For the Three Months Ended

Description September 30, 2019
September 30, 2018
Variation
Percent
Variation

September 30, 2019 September 30, 2018 Variation
Percent
Variation

General 6
12
(6 ) (50.0 )% $2 $2
$—
— %
Apartment house 722
781
(59 ) (7.6 ) 13 16 (3) (18.8 )
Annual power 2,443
2,711
(268 ) (9.9 ) 36 45 (9) (20.0 )
Other operating revenues (a) —
—
—
—
7 1 6 Large
Total 3,171
3,504
(333 ) (9.5 )% (b) $58 $64 $(6) (9.4 )%
(b)After adjusting for variations, primarily weather and billing days, steam sales and deliveries decreased 17.9 percent in the three months ended September 30, 2020 compared with the 2019 period. See “Coronavirus Disease 2019 (COVID-19) Impacts,” above.


~~(a)~~	~~Other steam operating revenues generally reflect changes in regulatory assets and liabilities in accordance with the company’s rate plan.~~


~~(b)~~	~~After adjusting for variations, primarily weather and billing days, steam sales and deliveries decreased 7.0 percent in the three months ended September 30, 2019 compared with the 2018 period.~~

Operating revenues decreased $6$7 million in the three months ended September 30, ~~2019~~2020 compared with the ~~2018~~2019 period primarily due ~~primarily~~ to ~~a higher reserve related~~lower revenues from the steam rate plan due to ~~steam earnings sharing~~lower usage by customers ($4 million), certain rate plan reconciliations ($4 million) and lower purchased power expenses ($21 million) ~~and~~, offset in part by higher fuel expenses ($12 million).

Purchased power~~decreased $2 million in the three months ended September 30, 2019 compared with the 2018 period due to lower unit costs ($1 million) and purchased volumes ($1 million).~~

~~Fuel~~ ~~expenses~~ decreased $1 million in the three months ended September 30, ~~2019~~2020 compared with the ~~2018~~2019 period due to lower purchased volumes ($2 million), offset in part by higher unit ~~costs.~~costs ($1 million).

~~Other operations and maintenance~~Fuel expenses ~~expenses decreased~~increased $2 million in the three months ended September 30, ~~2019~~2020 compared with the ~~2018~~2019 period due to higher unit costs.

Other operations and maintenance expenses decreased $4 million in the three months ended September 30, 2020 compared with the 2019 period primarily due to ~~the absence of property damage, clean-up and other response costs related to a steam main rupture in 2018 ($9 million), offset, in part, by higher~~lower municipal infrastructure support costs ($3 million), and lower costs for pension and other postretirement benefits ($~~2 million) and stock-based compensation ($~~1 million).

Taxes, other than income taxes ~~increased~~decreased $3 million in the three months ended September 30, ~~2019~~2020 compared with the ~~2018~~2019 period primarily due ~~primarily~~ to higher deferral of under-collected property ~~taxes.~~taxes ($5 million), offset in part by higher property taxes ($2 million).

Other Income (Deductions)

Other income (deductions) ~~increased $24~~decreased $29 million in the three months ended September 30, ~~2019~~2020 compared with the ~~2018~~2019 period primarily due ~~primarily~~ to ~~lower~~higher costs associated with components of pension and other postretirement benefits other than service ~~cost.~~cost due to a decrease in the discount rate.

~~Net Interest~~Income Tax Expense

~~Net interest expense increased $6~~Income taxes decreased $22 million in the three months ended September 30, ~~2019~~2020 compared with the ~~2018~~2019 period ~~due~~ primarily ~~to an increase in interest accrued on the TCJA related regulatory liability.~~

~~Table of Contents~~

~~Income Tax Expense~~

~~Income taxes decreased $6 million in the three months ended September 30, 2019 compared with the 2018 period~~ due ~~primarily~~ to lower income before income tax expense ($~~5 million), lower state income taxes ($1~~7 million) and an increase in the amortization of excess deferred federal income taxes due to ~~the TCJA~~CECONY’s electric and gas rate plans that went into effect in January 2020 ($425 million), offset in part by the absence of the amortization of excess deferred state income taxes in 2020 ($8 million) and lower flow-through tax benefits in ~~2019~~2020 for ~~plant-related flow through~~plant related items ~~($2 million) and higher non-deductible business expenses in the 2018 federal tax return due to the TCJA~~ ($3 million). CECONY deferred as a regulatory liability its estimated net benefits for the 2018 period under the TCJA and continued to defer its estimated net benefits in 2019 for only its electric service. See “Other Regulatory Matters” in Note B to the Third Quarter Financial Statements.

O&R


	For the Three Months Ended September 30, 2020			For the Three Months Ended September 30, 2019
(Millions of Dollars)	Electric	Gas	2020 Total	Electric	Gas	2019 Total	2020-2019 Variation
Operating revenues	$208	$30	$238	$210	$31	$241	$(3)
Purchased power	56	—	56	61	—	61	(5)
Gas purchased for resale	—	9	9	—	10	10	(1)
Other operations and maintenance	62	17	79	63	18	81	(2)
Depreciation and amortization	17	6	23	16	6	22	1
Taxes, other than income taxes	15	7	22	14	7	21	1
Operating income	$58	$(9)	$49	$56	$(10)	$46	$3

For the Three Months Ended
September 30, 2019 For the Three Months Ended
September 30, 2018

(Millions of Dollars) Electric
Gas
2019 Total Electric
Gas
2018 Total 2019-2018
Variation
Operating revenues $210 $31 $241 $212 $34 $246 $(5)
Purchased power 61 —
61 73 —
73 (12)
Gas purchased for resale —
10 10 —
12 12 (2)
Other operations and maintenance 63 18 81 60 20 80 1
Depreciation and amortization 16 6 22 14 5 19 3
Taxes, other than income taxes 14 7 21 13 7 20 1
Operating income $56 $(10) $46 $52 $(10) $42 $4

Electric

O&R’s results of electric operations for the three months ended September 30, ~~2019~~2020 compared with the ~~2018~~2019 period were as follows:

For the Three Months Ended

(Millions of Dollars) September 30, 2019 September 30, 2018 Variation
Operating revenues $210 $212 $(2)
Purchased power 61 73 (12)
Other operations and maintenance 63 60 3
Depreciation and amortization 16 14 2
Taxes, other than income taxes 14 13 1
Electric operating income $56 $52 $4

~~Table of Contents~~


	For the Three Months Ended
(Millions of Dollars)	September 30, 2020	September 30, 2019	Variation
Operating revenues	$208	$210	$(2)
Purchased power	56	61	(5)
Other operations and maintenance	62	63	(1)
Depreciation and amortization	17	16	1
Taxes, other than income taxes	15	14	1
Electric operating income	$58	$56	$2

O&R’s electric sales and deliveries for the three months ended September 30, ~~2019~~2020 compared with the ~~2018~~2019 period were:


	Millions of kWh Delivered						Revenues in Millions (a)
	For the Three Months Ended						For the Three Months Ended
Description	September 30, 2020	September 30, 2019	Variation	Percent Variation			September 30, 2020	September 30, 2019	Variation	Percent Variation
Residential/Religious (b)	647	586	61	10.4	%		$110	$106	$4	3.8	%
Commercial/Industrial	230	235	(5)	(2.1)			35	36	(1)	(2.8)
Retail choice customers	741	796	(55)	(6.9)			62	62	—	—
Public authorities	32	30	2	6.7			3	2	1	50.0
Other operating revenues (c)	—	—	—	—			(2)	4	(6)	Large
Total	1,650	1,647	3	0.2	%	(d)	$208	$210	$(2)	(1.0)	%

(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.

Millions of kWh Delivered Revenues in Millions (a)

For the Three Months Ended

For the Three Months Ended

Description September 30, 2019
September 30, 2018
Variation
Percent
Variation

September 30, 2019 September 30, 2018 Variation
Percent
Variation

Residential/Religious (b) 586
595
(9 ) (1.5 )% $106 $115 $(9) (7.8 )%
Commercial/Industrial 235
219
16
7.3
36 34 2 5.9
Retail choice customers 796
864
(68 ) (7.9 ) 62 67 (5) (7.5 )
Public authorities 30
32
(2 ) (6.3 ) 2 4 (2) (50.0 )
Other operating revenues (c) —
—
—
—
4 (8) 12 Large
Total 1,647
1,710
(63 ) (3.7 )% (d) $210 $212 $(2) (0.9 )%
(b)“Residential/Religious” generally includes single-family dwellings, individual apartments in multi-family dwellings, religious organizations and certain other not-for-profit organizations.


~~(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.~~


~~(d)~~	~~After adjusting for weather and other variations, electric delivery volumes in O&R’s service area decreased 0.8 percent in the three months ended September 30, 2019 compared with the 2018 period.~~

(c)Other electric operating revenues generally reflect changes in regulatory assets and liabilities in accordance with the company’s electric rate plan.

(d)After adjusting for weather and other variations, electric delivery volumes in O&R’s service area decreased 1.8 percent in the three months ended September 30, 2020 compared with the 2019 period. See “Coronavirus Disease 2019 (COVID-19) Impacts,” above.

Operating revenues decreased $2 million in the three months ended September 30, ~~2019~~2020 compared with the ~~2018~~2019 period primarily due ~~primarily~~ to lower purchased power expenses ($125 million), offset in part by higher revenues from the New York electric rate plan ($162 million).

Purchased power expenses decreased ~~$12~~$5 million in the three months ended September 30, ~~2019~~2020 compared with the ~~2018~~2019 period due to lower unit costs ($119 million) ~~and~~, offset in part by higher purchased volumes ($14 million).

Other operations and maintenance expenses ~~increased $3~~decreased $1 million in the three months ended September 30, ~~2019~~2020 compared with the ~~2018~~2019 period primarily due ~~primarily~~ to the deferral ~~as a~~in September 2020, under the legislative, regulatory ~~asset~~and related actions provision of ~~costs~~the company's New York electric rate plan, of the previously recorded increases to the allowance for ~~storm preparation in 2018 ($5 million), higher storm-related costs ($1 million), higher~~ uncollectible accounts associated with the COVID-19 pandemic ($1 ~~million),~~million after tax) and ~~higher stock-based compensation~~lower cost for pension and other postretirement benefits ($1 million), offset in part by ~~the reduction of a regulatory asset associated with certain site investigation~~estimated food and ~~remediation costs in 2018~~medicine spoilage claims related to outages caused by Tropical Storm Isaias ($62 million).

Depreciation and amortization ~~increased $2 million in the three months ended September 30, 2019 compared with the 2018 period due primarily to higher electric utility plant balances.~~

~~Taxes, other than income taxes~~ increased $1 million in the three months ended September 30, ~~2019~~2020 compared with the ~~2018~~2019 period primarily due to higher electric utility plant balances.

Taxes, other than income taxes increased $1 million in the three months ended September 30, 2020 compared with the 2019 period primarily due to higher property taxes.

Gas

O&R’s results of gas operations for the three months ended September 30, ~~2019~~2020 compared with the ~~2018~~2019 period were as follows:

For the Three Months Ended

(Millions of Dollars) September 30, 2019 September 30, 2018 Variation
Operating revenues $31 $34 $(3)
Gas purchased for resale 10 12 (2)
Other operations and maintenance 18 20 (2)
Depreciation and amortization 6 5 1
Taxes, other than income taxes 7 7 —
Gas operating income $(10) $(10)
$—

~~Table of Contents~~


	For the Three Months Ended
(Millions of Dollars)	September 30, 2020	September 30, 2019	Variation
Operating revenues	$30	$31	$(1)
Gas purchased for resale	9	10	(1)
Other operations and maintenance	17	18	(1)
Depreciation and amortization	6	6	—
Taxes, other than income taxes	7	7	—
Gas operating income	$(9)	$(10)	$1

O&R’s gas sales and deliveries, excluding off-system sales, for the three months ended September 30, ~~2019~~2020 compared with the ~~2018~~2019 period were:


~~(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 5.2 percent in the three months ended September 30, 2019 compared with the 2018 period.~~


	Thousands of Dt Delivered						Revenues in Millions (a)
	For the Three Months Ended						For the Three Months Ended
Description	September 30, 2020	September 30, 2019	Variation	Percent Variation			September 30, 2020	September 30, 2019	Variation	Percent Variation
Residential	724	621	103	16.6	%		$13	$11	$2	18.2	%
General	218	161	57	35.4			2	1	1	Large
Firm transportation	804	851	(47)	(5.5)			7	6	1	16.7
Total firm sales and transportation	1,746	1,633	113	6.9		(b)	22	18	4	22.2
Interruptible sales	787	798	(11)	(1.4)			1	1	—	—
Generation plants	21	6	15	Large			—	—	—	—
Other	30	74	(44)	(59.5)			—	1	(1)	Large
Other gas revenues	—	—	—	—			7	11	(4)	(36.4)
Total	2,584	2,511	73	2.9	%		$30	$31	$(1)	(3.2)	%

~~Operating~~(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 decreased ~~$3 million~~1.5 percent in the three months ended September 30, ~~2019~~2020 compared with the ~~2018 period due primarily to lower gas purchased for resale ($2 million) and lower revenues from the New York gas rate plan ($1 million).~~2019 period. See “Coronavirus Disease 2019 (COVID-19) Impacts,” above.

~~Gas purchased for resale~~Operating revenues decreased ~~$2 million in the three months ended September 30, 2019 compared with the 2018 period due to lower purchased volumes ($1 million) and unit costs ($1 million).~~

~~Other operations and maintenance~~ expenses decreased $2 million in the three months ended September 30, 2019 compared with the 2018 period due primarily to the reduction of a regulatory asset associated with certain site investigation and remediation costs in 2018.

~~Depreciation and amortization~~ ~~increased~~ $1 million in the three months ended September 30, ~~2019~~2020 compared with the ~~2018~~2019 period primarily due ~~primarily~~ to ~~higher~~lower gas ~~utility plant balances.~~purchased for resale.

~~Income Tax Expense~~

~~Income taxes increased $2~~Gas purchased for resale decreased $1 million in the three months ended September 30, ~~2019~~2020 compared with the ~~2018~~2019 period due ~~primarily~~ to ~~higher income before income tax expense~~lower unit costs ($2 million), offset in part by higher purchased volumes ($1 million). ~~O&R deferred as a regulatory liability its estimated net benefits for~~

Other operations and maintenance expenses decreased $1 million in the ~~2018~~three months ended September 30, 2020 compared with the 2019 period ~~under the TCJA. See “Other Regulatory Matters” in Note B~~primarily due to ~~the Third Quarter Financial Statements.~~lower pension costs.

Clean Energy Businesses

The Clean Energy Businesses’ results of operations for the three months ended September 30, ~~2019~~2020 compared with the ~~2018~~2019 period were as follows:


	For the Three Months Ended
(Millions of Dollars)	September 30, 2020	September 30, 2019	Variation
Operating revenues	$222	$247	$(25)

Gas purchased for resale	8	36	(28)
Other operations and maintenance	59	53	6
Depreciation and amortization	58	53	5
Taxes, other than income taxes	5	5	—

Operating income	$92	$100	$(8)

For the Three Months Ended

(Millions of Dollars) September 30, 2019 September 30, 2018 Variation
Operating revenues $247 $181 $66
Gas purchased for resale 36 85 (49)
Other operations and maintenance 53 50 3
Depreciation and amortization 53 18 35
Taxes, other than income taxes 5 3 2
Operating income $100 $25 $75

Operating revenues ~~increased $66~~decreased $25 million in the three months ended September 30, ~~2019~~2020 compared with the ~~2018~~2019 period ~~due~~ primarily to higher renewable electric production project revenues resulting from the December 2018 acquisition of Sempra Solar Holdings, LLC, including the consolidation of certain jointly-owned projects that were

~~Table of Contents~~

~~previously accounted for as equity method investments ($126 million). Wholesale revenues decreased ($55 million)~~ due to lower ~~sales volumes, energy services~~wholesale revenues ~~decreased~~ ($1221 million) and net mark-to-market values ~~increased~~ ($75 million), offset in part by higher energy services revenues ($1 million).

Gas purchased for resale decreased ~~$49~~$28 million in the three months ended September 30, ~~2019~~2020 compared with the ~~2018~~2019 period due to lower purchased volumes.

Other operations and maintenance expenses increased $3$6 million in the three months ended September 30, ~~2019~~2020 compared with the ~~2018~~2019 period primarily due ~~primarily~~ to ~~higher costs associated with additional renewable electric production projects in operation resulting from~~ the ~~December 2018 acquisition~~timing of ~~Sempra Solar Holdings, LLC ($12 million), offset, in part, by lower energy services costs ($9 million)~~.maintenance costs.

Depreciation and amortizationincreased ~~$35~~$5 million in the three months ended September 30, ~~2019~~2020 compared with the ~~2018~~2019 period primarily due ~~primarily~~ to an increase in renewable electric production projects ~~resulting~~in operation during 2020 and the final purchase price allocation of the acquisition from ~~the December 2018 acquisition of~~ Sempra ~~Solar Holdings, LLC (including the consolidation of certain jointly-owned projects that the Clean Energy Businesses previously accounted for as equity method investments).~~in 2019.

~~Taxes, other than income taxes~~
~~increased $2~~

Net Interest Expense

Net interest expense decreased $39 million in the three months ended September 30, ~~2019~~2020 compared with the ~~2018~~2019 period due ~~primarily~~ to ~~higher property taxes.~~lower unrealized losses on interest rate swaps in the 2020 period.

~~Other~~ Income ~~(Deductions)~~Tax Expense

~~Other income (deductions) decreased $17~~Income taxes increased $20 million in the three months ended September 30, ~~2019~~2020 compared with the ~~2018~~2019 period primarily due ~~primarily~~ to the absence in 2019 of equity income from certain jointly-owned projects that were accounted for as equity investments in 2018 but consolidated after the December 2018 acquisition of Sempra Solar Holdings, LLC.

~~Net Interest Expense~~

Net interest expense increased $48 million in the three months ended September 30, 2019 compared with the 2018 period due primarily to an increase in debt resulting from the December 2018 acquisition of Sempra Solar Holdings, LLC, including $825 million that was borrowed to fund a portion of the purchase price, $576 million of Sempra Solar Holdings, LLC subsidiaries' project debt that was outstanding at the time of the acquisition and the consolidation of $506 million of project debt of certain jointly-owned projects that the Clean Energy Businesses previously accounted for as equity method investments.

~~Income Tax Expense~~

~~Income taxes decreased $15 million in the three months ended September 30, 2019 compared with the 2018 period due primarily to lower~~higher income before income tax expense ~~(excluding income attributable to non-controlling interest)~~ ($47 million), ~~higher renewable energy credits ($3 million), lower state income taxes ($1 million) and adjustments~~the absence of the adjustment for prior period federal income tax returns primarily due to ~~increased~~higher research and development credits in 2019 ($1413 million) and lower income attributable to non-controlling interest ($5 million), offset in part by ana lower increase in the reserve for uncertain tax positions in 2020, as compared with the 2019 period ($7 million).

~~Income Attributable to Non-Controlling Interest~~

Income attributable to non-controlling interest increased $30 million in the three months ended September 30, 2019 compared with the 2018 period due primarily to the income attributable in the 2019 period to a tax equity investor in renewable electric production projects accounted for under the HLBV method of accounting. See Note N to the Third Quarter Financial Statements.

~~Con Edison Transmission~~

~~Income Tax Expense~~

~~Income taxes increased $1 million in the three months ended September 30, 2019 compared with the 2018 period due primarily to higher income before income tax expense.~~

~~Other~~

~~Income Tax Expense~~

Income taxes decreased $41 million in the three months ended September 30, 2019 compared with the 2018 period due primarily to the absence of the TCJA re-measurement of deferred tax assets with Con Edison’s 2017 federal net operating loss carryforward into 2018 ($42 million), offset, in part, by higher state income taxes ($1 million).

~~Table of Contents~~

~~The Companies’ results of operations for the nine months ended September 30, 2019 and 2018 were as follows:~~

CECONY O&R Clean Energy Businesses Con Edison
Transmission Other (a) Con Edison (b)
(Millions of Dollars) 2019
2018
2019
2018
2019
2018
2019
2018
2019
2018
2019 2018
Operating revenues $8,248 $8,121 $678 $691 $696 $573 $3 $3 $(2)
$—
$9,623 $9,388
Purchased power 1,058 1,117 146 167 —
2 —
—
(1) 1 1,203 1,287
Fuel 163 201 —
—
—
—
—
—
—
—
163 201
Gas purchased for resale 445 457 68 60 159 219 —
—
(1) —
671 736
Other operations and maintenance 2,022 1,926 225 234 168 226 7 7 —
(4) 2,422 2,389
Depreciation and amortization 1,020 949 63 57 169 55 1 1 —
(1) 1,253 1,061
Taxes, other than income taxes 1,715 1,621 63 63 17 12 —
—
5 11 1,800 1,707
Operating income 1,825 1,850 113 110 183 59 (5) (5) (5) (7) 2,111 2,007
Other income less deductions (31) (99) (8) (15) 3 34 76 67 (9) (16) 31 (29)
Net interest expense 545 508 30 29 170 39 18 14 9 7 772 597
Income before income tax expense 1,249 1,243 75 66 16 54 53 48 (23) (30) 1,370 1,381
Income tax expense 271 274 15 14 (44) (4) 15 13 (14) 33 243 330
Net income $978 $969 $60 $52 $60 $58 $38 $35 $(9) $(63) $1,127 $1,051
Income attributable to non-controlling interest

—
—
—
—
79 —
—
—
—
—
79 —
Net income for common stock $978 $969 $60 $52 $(19) $58 $38 $35 $(9) $(63) $1,048 $1,051


~~(a)~~	~~Includes parent company and consolidation adjustments.~~


~~(b)~~	~~Represents the consolidated results of operations of Con Edison and its businesses.~~

~~Table of Contents~~

~~CECONY~~

For the Nine Months Ended
September 30, 2019

For the Nine Months Ended
September 30, 2018


(Millions of Dollars) Electric
Gas
Steam
2019 Total Electric
Gas
Steam
2018 Total 2019-2018
Variation
Operating revenues $6,174 $1,605 $469 $8,248 $6,107 $1,540 $474 $8,121 $127
Purchased power 1,033 —
25 1,058 1,091 —
26 1,117 (59)
Fuel 74 —
89 163 118 —
83 201 (38)
Gas purchased for resale —
445 —
445 —
457 —
457 (12)
Other operations and maintenance 1,582 306 134 2,022 1,480 315 131 1,926 96
Depreciation and amortization 785 168 67 1,020 732 152 65 949 71
Taxes, other than income taxes 1,326 272 117 1,715 1,265 247 109 1,621 94
Operating income $1,374 $414 $37 $1,825 $1,421 $369 $60 $1,850 $(25)

~~Electric~~

~~CECONY’s results of electric operations for the nine months ended September 30, 2019 compared with the 2018 period were as follows:~~

For the Nine Months Ended

(Millions of Dollars) September 30, 2019 September 30, 2018 Variation
Operating revenues $6,174 $6,107 $67
Purchased power 1,033 1,091 (58)
Fuel 74 118 (44)
Other operations and maintenance 1,582 1,480 102
Depreciation and amortization 785 732 53
Taxes, other than income taxes 1,326 1,265 61
Electric operating income $1,374 $1,421 $(47)

~~CECONY’s electric sales and deliveries for the nine months ended September 30, 2019 compared with the 2018 period were:~~

Millions of kWh Delivered Revenues in Millions (a)

For the Nine Months Ended

For the Nine Months Ended

Description September 30, 2019
September 30, 2018
Variation
Percent
Variation
September 30, 2019 September 30, 2018 Variation
Percent
Variation
Residential/Religious (b) 8,203
8,374
(171 ) (2.0 )% $2,060 $2,211 $(151) (6.8 )%
Commercial/Industrial 7,574
7,343
231
3.1
1,405 1,433 (28) (2.0 )
Retail choice customers 18,968
19,996
(1,028 ) (5.1 ) 1,879 2,030 (151) (7.4 )
NYPA, Municipal Agency and other sales 7,477
7,747
(270 ) (3.5 ) 511 509 2 0.4
Other operating revenues (c) —
—
—
—
319 (76) 395 Large
Total 42,222
43,460
(1,238 ) (2.8 )% (d) $6,174 $6,107 $67 1.1 %


~~(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 the revenue decoupling mechanism current asset or regulatory liability and changes in regulatory assets and liabilities in accordance with other provisions of the company’s rate plans.


~~(d)~~	After adjusting for variations, primarily weather and billing days, electric delivery volumes in CECONY’s service area decreased 1.0 percent in the nine months ended September 30, 2019 compared with the 2018 period.

~~Table of Contents~~

~~Operating revenues~~ increased $67 million in the nine months ended September 30, 2019 compared with the 2018 period due primarily to an increase in revenues from the rate plan ($161 million), offset, in part, by lower purchased power expenses ($58 million) and fuel expenses ($44 million).

~~Purchased power~~ expenses decreased $58 million in the nine months ended September 30, 2019 compared with the 2018 period due to lower unit costs ($152 million), offset, in part, by higher purchased volumes ($94 million).

~~Fuel~~ expenses decreased $44 million in the nine months ended September 30, 2019 compared with the 2018 period due to lower unit costs ($40 million) and purchased volumes from the company’s electric generating facilities ($4 million).

~~Other operations and maintenance~~ expenses increased $102 million in the nine months ended September 30, 2019 compared with the 2018 period due primarily to higher costs for pension and other postretirement benefits ($49 million), surcharges for assessments and fees that are collected in revenues from customers ($36 million) and higher stock-based compensation ($24 million).

~~Depreciation and amortization~~ ~~increased $53 million in the nine months ended September 30, 2019 compared with the 2018 period due primarily to higher electric utility plant balances.~~

~~Taxes, other than income taxes~~ increased $61 million in the nine months ended September 30, 2019 compared with the 2018 period due primarily to higher property taxes ($53 million), the absence of a New York State sales and use tax refund received in 2018 ($14 million) and lower deferral of under-collected property taxes ($5 million), offset, in part, by the reduction in the sales and use tax reserve upon conclusion of the audit assessment ($6 million) and lower state and local taxes ($5 million).

~~Gas~~

~~CECONY’s results of gas operations for the nine months ended September 30, 2019 compared with the 2018 period were as follows:~~

For the Nine Months Ended

(Millions of Dollars) September 30, 2019 September 30, 2018 Variation
Operating revenues $1,605 $1,540 $65
Gas purchased for resale 445 457 (12)
Other operations and maintenance 306 315 (9)
Depreciation and amortization 168 152 16
Taxes, other than income taxes 272 247 25
Gas operating income $414 $369 $45

~~Table of Contents~~

~~CECONY’s gas sales and deliveries, excluding off-system sales, for the nine months ended September 30, 2019 compared with the 2018 period were:~~

Thousands of Dt Delivered Revenues in Millions (a)

For the Nine Months Ended

For the Nine Months Ended

Description September 30, 2019
September 30, 2018
Variation
Percent
Variation
September 30, 2019 September 30, 2018 Variation
Percent
Variation
Residential 41,035
43,731
(2,696 ) (6.2 )% $724 $728 $(4) (0.5 )%
General 25,018
25,894
(876 ) (3.4 ) 299 298 1 0.3
Firm transportation 60,590
61,628
(1,038 ) (1.7 ) 444 448 (4) (0.9 )
Total firm sales and transportation 126,643
131,253
(4,610 ) (3.5 ) (b) 1,467 1,474 (7) (0.5 )
Interruptible sales (c) 7,375
4,956
2,419
48.8
34 31 3 9.7
NYPA 30,296
27,528
2,768
10.1
2 2 —
—
Generation plants 41,545
55,949
(14,404 ) (25.7 ) 18 20 (2) (10.0 )
Other 16,058
15,399
659
4.3
24 24 —
—
Other operating revenues (d) —
—
—
—
60 (11) 71 Large
Total 221,917
235,085
(13,168 ) (5.6 )% $1,605 $1,540 $65 4.2 %


~~(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, primarily billing days, firm gas sales and transportation volumes in the company’s service area increased 1.9 percent in the nine months ended September 30, 2019 compared with the 2018 period, reflecting primarily increased volumes attributable to the growth in the number of gas customers.


~~(c)~~	~~Includes 3,797 thousands and 1,798 thousands of Dt for the 2019 and 2018 periods, respectively, which 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 the company’s rate plans.

~~Operating revenues~~ increased $65 million in the nine months ended September 30, 2019 compared with the 2018 period due primarily to an increase in revenues from the rate plan ($83 million), offset, in part, by lower gas purchased for resale expense ($12 million).

~~Gas purchased for resale~~ ~~decreased $12 million in the nine months ended September 30, 2019 compared with the 2018 period due to lower unit costs ($13 million), offset, in part, by higher purchased volumes ($1 million).~~

~~Other operations and maintenance~~ expenses decreased $9 million in the nine months ended September 30, 2019 compared with the 2018 period due primarily to lower surcharges for assessments and fees that are collected in revenues from customers ($12 million) and equipment maintenance expenses ($4 million), offset, in part, by higher stock-based compensation ($5 million).

~~Depreciation and amortization~~ ~~increased $16 million in the nine months ended September 30, 2019 compared with the 2018 period due primarily to higher gas utility plant balances.~~

~~Taxes, other than income taxes~~ increased $25 million in the nine months ended September 30, 2019 compared with the 2018 period due primarily to higher property taxes ($27 million), the absence of a New York State sales and use tax refund received in 2018 ($3 million) and higher state and local taxes ($1 million), offset, in part, by higher deferral of under-collected property taxes ($4 million) and the reduction in the sales and use tax reserve upon conclusion of the audit assessment ($1 million).

~~Table of Contents~~

~~Steam~~

~~CECONY’s results of steam operations for the nine months ended September 30, 2019 compared with the 2018 period were as follows:~~

For the Nine Months Ended

(Millions of Dollars) September 30, 2019 September 30, 2018 Variation
Operating revenues $469 $474 $(5)
Purchased power 25 26 (1)
Fuel 89 83 6
Other operations and maintenance 134 131 3
Depreciation and amortization 67 65 2
Taxes, other than income taxes 117 109 8
Steam operating income $37 $60 $(23)

~~CECONY’s steam sales and deliveries for the nine months ended September 30, 2019 compared with the 2018 period were:~~

Millions of Pounds Delivered Revenues in Millions

For the Nine Months Ended

For the Nine Months Ended

Description September 30, 2019
September 30, 2018
Variation
Percent
Variation
September 30, 2019 September 30, 2018 Variation
Percent
Variation
General 394
442
(48 ) (10.9 )% $20 $23 $(3) (13.0 )%
Apartment house 4,331
4,670
(339 ) (7.3 ) 120 129 (9) (7.0 )
Annual power 10,383
11,313
(930 ) (8.2 ) 304 333 (29) (8.7 )
Other operating revenues (a) —
—
—
—
25 (11) 36 Large
Total 15,108
16,425
(1,317 ) (8.0 )% (b) $469 $474 $(5) (1.1 )%


~~(a)~~	~~Other steam operating revenues generally reflect changes in regulatory assets and liabilities in accordance with the company’s rate plan.~~


~~(b)~~	~~After adjusting for variations, primarily weather and billing days, steam sales and deliveries decreased 3.5 percent in the nine months ended September 30, 2019 compared with the 2018 period.~~

~~Operating revenues~~ decreased $5 million in the nine months ended September 30, 2019 compared with the 2018 period due primarily to the impact of warmer winter weather ($21 million) and lower purchased power expenses ($1 million), offset, in part, by certain rate plan reconciliations ($12 million) and higher fuel expenses ($6 million).

~~Purchased power~~ ~~expenses decreased $1 million in the nine months ended September 30, 2019 compared with the 2018 period due to lower unit costs.~~

~~Fuel~~ expenses increased $6 million in the nine months ended September 30, 2019 compared with the 2018 period due to higher unit costs ($9 million), offset, in part, by lower purchased volumes from the company’s steam generating facilities ($3 million).

~~Other operations and maintenance~~ expenses increased $3 million in the nine months ended September 30, 2019 compared with the 2018 period due primarily to higher municipal infrastructure support costs ($6 million), higher costs for pension and other postretirement benefits ($5 million) and stock-based compensation ($2 million), offset, in part, by the absence of property damage, clean-up and other response costs related to a steam main rupture in 2018 ($7 million).

~~Depreciation and amortization~~ ~~increased $2 million in the nine months ended September 30, 2019 compared with the 2018 period due primarily to higher steam utility plant balances.~~

~~Taxes, other than income taxes~~ ~~increased $8 million in the nine months ended September 30, 2019 compared with the 2018 period due primarily to higher property taxes.~~

~~Table of Contents~~

~~Other Income (Deductions)~~

Other income (deductions) increased $68 million in the nine months ended September 30, 2019 compared with the 2018 period due primarily to lower costs associated with components of pension and other postretirement benefits other than service cost.

~~Net Interest Expense~~

Net interest expense increased $37 million in the nine months ended September 30, 2019 compared with the 2018 period due primarily to higher interest expense for long-term ($10 million) and short-term ($7 million) debt, an increase in interest accrued on the TCJA related regulatory liability ($9 million) and interest accrued on the system benefit charge liability ($6 million).

~~Income Tax Expense~~

Income taxes decreased $3 million in the nine months ended September 30, 2019 compared with the 2018 period due primarily to an increase in the amortization of excess deferred federal income taxes due to the TCJA ($5 million) and higher research and development credits ($1 million), offset, in part, by lower tax benefits in 2019 for plant-related flow through items ($1 million) and higher non-deductible business expenses in the 2018 federal tax return due to the TCJA ($3 million). CECONY deferred as a regulatory liability its estimated net benefits for the 2018 period under the TCJA and continued to defer its estimated net benefits in 2019 for only its electric service. See “Other Regulatory Matters” in Note B to the Third Quarter Financial Statements.

~~O&R~~

For the Nine Months Ended
September 30, 2019 For the Nine Months Ended
September 30, 2018

(Millions of Dollars) Electric
Gas
2019 Total Electric
Gas
2018 Total 2019-2018
Variation
Operating revenues $493 $185 $678 $505 $186 $691 $(13)
Purchased power 146 —
146 167 —
167 (21)
Gas purchased for resale —
68 68 —
60 60 8
Other operations and maintenance 173 52 225 178 56 234 (9)
Depreciation and amortization 46 17 63 41 16 57 6
Taxes, other than income taxes 40 23 63 40 23 63 —
Operating income $88 $25 $113 $79 $31 $110
$3

~~Electric~~

~~O&R’s results of electric operations for the nine months ended September 30, 2019 compared with the 2018 period were as follows:~~

For the Nine Months Ended

(Millions of Dollars) September 30, 2019 September 30, 2018 Variation
Operating revenues $493 $505 $(12)
Purchased power 146 167 (21)
Other operations and maintenance 173 178 (5)
Depreciation and amortization 46 41 5
Taxes, other than income taxes 40 40 —
Electric operating income $88 $79 $9

~~Table of Contents~~

~~O&R’s electric sales and deliveries for the nine months ended September 30, 2019 compared with the 2018 period were:~~

Millions of kWh Delivered Revenues in Millions (a)

For the Nine Months Ended

For the Nine Months Ended

Description September 30, 2019
September 30, 2018
Variation
Percent
Variation
September 30, 2019 September 30, 2018 Variation
Percent
Variation
Residential/Religious (b) 1,339
1,348
(9 ) (0.7 )% $243 $260 $(17) (6.5 )%
Commercial/Industrial 621
609
12
2.0
87 91 (4) (4.4 )
Retail choice customers 2,194
2,274
(80 ) (3.5 ) 147 158 (11) (7.0 )
Public authorities 80
104
(24 ) (23.1 ) 7 10 (3) (30.0 )
Other operating revenues (c) —
—
—
—
9 (14) 23 Large
Total 4,234
4,335
(101 ) (2.3 )% (d) $493 $505 $(12) (2.4 )%


~~(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.~~


~~(d)~~	~~After adjusting for weather and other variations, electric delivery volumes in O&R’s service area decreased 1.7 percent in the nine months ended September 30, 2019 compared with the 2018 period.~~

~~Operating revenues~~ ~~decreased $12 million in the nine months ended September 30, 2019 compared with the 2018 period due primarily to lower purchased power expenses.~~

~~Purchased power~~ expenses decreased $21 million in the nine months ended September 30, 2019 compared with the 2018 period due to lower unit costs ($22 million), offset, in part, by higher purchased volumes ($1 million).

~~Other operations and maintenance~~ expenses decreased $5 million in the nine months ended September 30, 2019 compared with the 2018 period due primarily to the reduction of a regulatory asset associated with certain site investigation and remediation costs in 2018.

~~Depreciation and amortization~~ ~~increased $5 million in the nine months ended September 30, 2019 compared with the 2018 period due primarily to higher electric utility plant balances.~~

~~Gas~~

~~O&R’s results of gas operations for the nine months ended September 30, 2019 compared with the 2018 period were as follows:~~

For the Nine Months Ended

(Millions of Dollars) September 30, 2019 September 30, 2018 Variation
Operating revenues $185 $186 $(1)
Gas purchased for resale 68 60 8
Other operations and maintenance 52 56 (4)
Depreciation and amortization 17 16 1
Taxes, other than income taxes 23 23 —
Gas operating income $25 $31 $(6)

~~Table of Contents~~

~~O&R’s gas sales and deliveries, excluding off-system sales, for the nine months ended September 30, 2019 compared with the 2018 period were:~~

Thousands of Dt Delivered Revenues in Millions (a)

For the Nine Months Ended

For the Nine Months Ended

Description September 30, 2019
September 30, 2018
Variation
Percent
Variation
September 30, 2019
September 30, 2018
Variation
Percent
Variation
Residential 6,875
6,503
372
5.7 % $98 $96 $2 2.1 %
General 1,608
1,502
106
7.1
18 18 —
—
Firm transportation 6,430
6,867
(437 ) (6.4 ) 44 57 (13) (22.8 )
Total firm sales and transportation 14,913
14,872
41
0.3
(b) 160 171 (11) (6.4 )
Interruptible sales 2,690
2,842
(152 ) (5.3 ) 4 5 (1) (20.0 )
Generation plants 6
1
5
Large
—
—
—
—
Other 637
636
1
0.2
1 1 —
—
Other gas revenues —
—
—
—
20 9 11 Large
Total 18,246
18,351
(105 ) (0.6 )% $185 $186 $(1) (0.5 )%


~~(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 1.8 percent in the nine months ended September 30, 2019 compared with 2018 period.~~

~~Operating revenues~~ decreased $1 million in the nine months ended September 30, 2019 compared with the 2018 period due primarily to lower revenues from the New York gas rate plan ($7 million), offset, by an increase in gas purchased for resale ($8 million).

~~Gas purchased for resale~~ ~~increased $8 million in the nine months ended September 30, 2019 compared with the 2018 period due to higher unit costs ($6 million) and purchased volumes ($2 million).~~

~~Other operations and maintenance~~ expenses decreased $4 million in the nine months ended September 30, 2019 compared with the 2018 period due primarily to the reduction of a regulatory asset associated with certain site investigation and remediation costs in 2018.

~~Depreciation and amortization~~ ~~increased $1 million in the nine months ended September 30, 2019 compared with the 2018 period due primarily to higher gas utility plant balances.~~

~~Income Tax Expense~~

Income taxes increased $1 million in the nine months ended September 30, 2019 compared with the 2018 period due primarily to higher income before income tax expense ($2 million), offset, in part, by an increase in amortization of excess deferred federal income taxes due to TCJA ($1 million).

~~Clean Energy Businesses~~

~~The Clean Energy Businesses’ results of operations for the nine months ended September 30, 2019 compared with the 2018 period were as follows:~~

For the Nine Months Ended

(Millions of Dollars) September 30, 2019
September 30, 2018 Variation
Operating revenues $696 $573 $123
Purchased power —
2 (2)
Gas purchased for resale 159 219 (60)
Other operations and maintenance 168 226 (58)
Depreciation and amortization 169 55 114
Taxes, other than income taxes 17 12 5
Operating income $183 $59 $124

~~Operating revenues~~ increased $123 million in the nine months ended September 30, 2019 compared with the 2018 period due primarily to higher renewable electric production project revenues resulting from the December 2018

~~Table of Contents~~

acquisition of Sempra Solar Holdings, LLC, including the consolidation of certain jointly-owned projects that were previously accounted for as equity method investments ($286 million), offset, in part, by lower engineering, procurement and construction services revenues due to the completion in 2018 of a solar electric production project developed for another company ($92 million). Wholesale revenues decreased ($66 million) due to lower sales volumes, energy services revenues decreased ($16 million) and net mark-to-market values increased ($12 million).

~~Purchased power~~ expenses decreased $2 million in the nine months ended September 30, 2019 compared with the 2018 period due primarily to the absence in the 2019 period of the true-ups relating to the retail electric supply business sold in 2016.

~~Gas purchased for resale~~ ~~decreased $60 million in the nine months ended September 30, 2019 compared with the 2018 period due primarily to lower purchased volumes.~~

~~Other operations and maintenance~~ expenses decreased $58 million in the nine months ended September 30, 2019 compared with the 2018 period due primarily to lower engineering, procurement and construction costs ($82 million) and lower energy services costs ($10 million), offset, in part, by higher costs associated with additional renewable electric production projects in operation resulting from the December 2018 acquisition of Sempra Solar Holdings, LLC ($34 million).

~~Depreciation and amortization~~ increased $114 million in the nine months ended September 30, 2019 compared with the 2018 period due primarily to an increase in renewable electric production projects resulting from the December 2018 acquisition of Sempra Solar Holdings, LLC (including the consolidation of certain jointly-owned projects that the Clean Energy Businesses previously accounted for as equity method investments).

~~Taxes, other than income taxes~~ ~~increased $5 million in the nine months ended September 30, 2019 compared with the 2018 period due primarily to higher property taxes.~~

~~Other Income (Deductions)~~

Other income (deductions) decreased $31 million in the nine months ended September 30, 2019 compared with the 2018 period due primarily to the absence in 2019 of equity income from certain jointly-owned projects that were accounted for as equity investments in 2018 but consolidated after the December 2018 acquisition of Sempra Solar Holdings, LLC.

~~Net Interest Expense~~

Net interest expense increased $131 million in the nine months ended September 30, 2019 compared with the 2018 period due primarily to an increase in debt resulting from the December 2018 acquisition of Sempra Solar Holdings, LLC, including $825 million that was borrowed to fund a portion of the purchase price, $576 million of Sempra Solar Holdings, LLC subsidiaries' project debt that was outstanding at the time of the acquisition and the consolidation of $506 million of project debt of certain jointly-owned projects that the Clean Energy Businesses previously accounted for as equity method investments.

~~Income Tax Expense~~

Income taxes decreased $40 million in the nine months ended September 30, 2019 compared with the 2018 period due primarily to lower income before income tax expense (excluding income attributable to non-controlling interest) ($25 million), higher renewable energy credits ($7 million), lower state income taxes ($4 million) and adjustments for prior period federal income tax returns primarily due to increased research and development credits ($11 million), offset, in part, by an increase in uncertain tax positions ($7 million).

Income Attributable to Non-Controlling Interest

Income attributable to non-controlling interest increased ~~$79~~$21 million in the ~~nine~~three months ended September 30, ~~2019~~2020 compared with the ~~2018~~2019 period primarily due ~~primarily~~ to ~~the income~~lower losses attributable in the ~~2019~~2020 period to a tax equity investor in renewable electric production projects accounted for under the HLBV method of accounting. See Note NO to the Third Quarter Financial Statements.

Other

Income Tax Expense

Income taxes increased $4 million in the three months ended September 30, 2020 compared with the 2019 period primarily due to lower consolidated state income tax benefits.

The Companies’ results of operations for the nine months ended September 30, 2020 and 2019 were as follows:


	CECONY		O&R		Clean Energy Businesses		Con Edison Transmission		Other (a)		Con Edison (b)
(Millions of Dollars)	2020	2019	2020	2019	2020	2019	2020	2019	2020	2019	2020	2019
Operating revenues	$8,072	$8,248	$647	$678	$566	$696	$3	$3	$(2)	$(2)	$9,286	$9,623
Purchased power	1,065	1,058	127	146	—	—	—	—	—	(1)	1,192	1,203
Fuel	124	163	—	—	—	—	—	—	—	—	124	163
Gas purchased for resale	298	445	43	68	24	159	—	—	(1)	(1)	364	671
Other operations and maintenance	1,714	2,022	232	225	165	168	8	7	(3)	—	2,116	2,422
Depreciation and amortization	1,187	1,020	67	63	173	169	1	1	—	—	1,428	1,253
Taxes, other than income taxes	1,830	1,715	64	63	16	17	—	—	5	5	1,915	1,800

Operating income	1,854	1,825	114	113	188	183	(6)	(5)	(3)	(5)	2,147	2,111
Other income less deductions	(138)	(31)	(11)	(8)	4	3	78	76	(5)	(9)	(72)	31
Net interest expense	554	545	30	30	183	170	14	18	16	9	797	772
Income before income tax expense	1,162	1,249	73	75	9	16	58	53	(24)	(23)	1,278	1,370
Income tax expense	199	271	16	15	(36)	(44)	16	15	(12)	(14)	183	243
Net income	$963	$978	$57	$60	$45	$60	$42	$38	$(12)	$(9)	$1,095	$1,127
Income attributable to non-controlling interest	—	—	—	—	37	79	—	—	—	—	37	79
Net income for common stock	$963	$978	$57	$60	$8	$(19)	$42	$38	$(12)	$(9)	$1,058	$1,048

(a)Includes parent company and consolidation adjustments.

(b)Represents the consolidated results of operations of Con Edison ~~Transmission~~and its businesses.

CECONY


	For the Nine Months Ended September 30, 2020				For the Nine Months Ended September 30, 2019
(Millions of Dollars)	Electric	Gas	Steam	2020 Total	Electric	Gas	Steam	2019 Total	2020-2019 Variation
Operating revenues	$6,178	$1,509	$385	$8,072	$6,174	$1,605	$469	$8,248	$(176)
Purchased power	1,046	—	19	1,065	1,033	—	25	1,058	7
Fuel	56	—	68	124	74	—	89	163	(39)
Gas purchased for resale	—	298	—	298	—	445	—	445	(147)
Other operations and maintenance	1,322	269	123	1,714	1,582	306	134	2,022	(308)
Depreciation and amortization	904	216	67	1,187	785	168	67	1,020	167
Taxes, other than income taxes	1,437	286	107	1,830	1,326	272	117	1,715	115
Operating income	$1,413	$440	$1	$1,854	$1,374	$414	$37	$1,825	$29

Electric

CECONY’s results of electric operations for the nine months ended September 30, 2020 compared with the 2019 period were as follows:


	For the Nine Months Ended
(Millions of Dollars)	September 30, 2020	September 30, 2019	Variation
Operating revenues	$6,178	$6,174	$4
Purchased power	1,046	1,033	13
Fuel	56	74	(18)
Other operations and maintenance	1,322	1,582	(260)
Depreciation and amortization	904	785	119
Taxes, other than income taxes	1,437	1,326	111
Electric operating income	$1,413	$1,374	$39

CECONY’s electric sales and deliveries for the nine months ended September 30, 2020 compared with the 2019 period were:


	Millions of kWh Delivered						Revenues in Millions (a)
	For the Nine Months Ended						For the Nine Months Ended
Description	September 30, 2020	September 30, 2019	Variation	Percent Variation			September 30, 2020	September 30, 2019	Variation	Percent Variation
Residential/Religious (b)	8,638	8,203	435	5.3	%		$2,220	$2,060	$160	7.8	%
Commercial/Industrial	7,145	7,574	(429)	(5.7)			1,407	1,405	2	0.1
Retail choice customers	17,014	18,968	(1,954)	(10.3)			1,838	1,879	(41)	(2.2)
NYPA, Municipal Agency and other sales	6,972	7,477	(505)	(6.8)			506	511	(5)	(1.0)
Other operating revenues (c)	—	—	—	—			207	319	(112)	(35.1)
Total	39,769	42,222	(2,453)	(5.8)	%	(d)	$6,178	$6,174	$4	0.1	%

(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.

(d)After adjusting for variations, primarily weather and billing days, electric delivery volumes in CECONY’s service area decreased 5.6 percent in the nine months ended September 30, 2020 compared with the 2019 period. See “Coronavirus Disease 2019 (COVID-19) Impacts,” above.

Operating revenues increased $4 million in the nine months ended September 30, 2020 compared with the 2019 period primarily due to certain rate plan reconciliations ($15 million) and higher purchased power expenses ($13 million), offset in part by lower fuel expenses ($18 million).

Purchased power expenses increased $13 million in the nine months ended September 30, 2020 compared with the 2019 period due to higher unit costs ($105 million), offset in part by lower purchased volumes ($92 million).

Fuel expenses decreased $18 million in the nine months ended September 30, 2020 compared with the 2019 period due to lower unit costs ($22 million), offset in part by higher purchased volumes from the company’s electric generating facilities ($4 million).

Other operations and maintenance expenses decreased $260 million in the nine months ended September 30, 2020 compared with the 2019 period primarily due to lower costs for pension and other postretirement benefits ($151 million), lower surcharges for assessments and fees that are collected in revenues from customers ($79 million), lower stock-based compensation ($13 million) and lower healthcare costs ($10 million), offset in part by incremental costs associated with the COVID-19 pandemic ($13 million) and estimated food and medicine spoilage claims related to outages caused by Tropical Storm Isaias ($5 million).

Depreciation and amortization increased $119 million in the nine months ended September 30, 2020 compared with the 2019 period primarily due to higher electric utility plant balances and higher depreciation rates.

Taxes, other than income taxes increased $111 million in the nine months ended September 30, 2020 compared with the 2019 period primarily due to higher property taxes ($89 million), lower deferral of under-collected property taxes ($13 million), higher state and local taxes ($8 million) and absence in 2020 of a reduction in the sales and use tax reserve upon conclusion of the audit assessment ($5 million), offset in part by lower payroll taxes ($5 million) that includes the Employee Retention Tax Credit created under the CARES Act. See “Coronavirus Disease 2019 (COVID-19) Impacts - Impact of CARES Act on Accounting for Income Taxes,” above.

Gas

CECONY’s results of gas operations for the nine months ended September 30, 2020 compared with the 2019 period were as follows:


	For the Nine Months Ended
(Millions of Dollars)	September 30, 2020	September 30, 2019	Variation
Operating revenues	$1,509	$1,605	$(96)
Gas purchased for resale	298	445	(147)
Other operations and maintenance	269	306	(37)
Depreciation and amortization	216	168	48
Taxes, other than income taxes	286	272	14
Gas operating income	$440	$414	$26

CECONY’s gas sales and deliveries, excluding off-system sales, for the nine months ended September 30, 2020 compared with the 2019 period were:


	Thousands of Dt Delivered						Revenues in Millions (a)
	For the Nine Months Ended						For the Nine Months Ended
Description	September 30, 2020	September 30, 2019	Variation	Percent Variation			September 30, 2020	September 30, 2019	Variation	Percent Variation
Residential	37,161	41,035	(3,874)	(9.4)	%		$691	$724	$(33)	(4.6)	%
General	22,551	25,018	(2,467)	(9.9)			237	299	(62)	(20.7)
Firm transportation	58,697	60,590	(1,893)	(3.1)			487	444	43	9.7
Total firm sales and transportation	118,409	126,643	(8,234)	(6.5)		(b)	1,415	1,467	(52)	(3.5)
Interruptible sales (c)	6,869	7,375	(506)	(6.9)			23	34	(11)	(32.4)
NYPA	29,403	30,296	(893)	(2.9)			2	2	—	—
Generation plants	40,073	41,545	(1,472)	(3.5)			17	18	(1)	(5.6)
Other	16,481	16,058	423	2.6			27	24	3	12.5
Other operating revenues (d)	—	—	—	—			25	60	(35)	(58.3)
Total	211,235	221,917	(10,682)	(4.8)	%		$1,509	$1,605	$(96)	(6.0)	%

(a)Revenues from gas sales are subject to a weather normalization clause and a revenue decoupling mechanism as a result of which delivery revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved.

(b)After adjusting for variations, primarily billing days, firm gas sales and transportation volumes in the company’s service area decreased 0.5 percent in the nine months ended September 30, 2020 compared with the 2019 period. See “Coronavirus Disease 2019 (COVID-19) Impacts,” above.

(c)Includes 2,961 thousand and 3,797 thousand of Dt for the 2020 and 2019 periods, respectively, which 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 the company’s rate plans.

Operating revenues decreased $96 million in the nine months ended September 30, 2020 compared with the 2019 period primarily due to lower gas purchased for resale expense ($147 million) and certain rate plan reconciliations ($19 million), offset in part by higher gas net base revenues due to gas base rates increase in January 2020 under the company's gas rate plan ($69 million).

Gas purchased for resale decreased $147 million in the nine months ended September 30, 2020 compared with the 2019 period due to lower unit costs ($98 million) and purchased volumes ($49 million).

Other operations and maintenance expenses decreased $37 million in the nine months ended September 30, 2020 compared with the 2019 period primarily due to lower costs for pension and other postretirement benefits ($24 million), lower stock-based compensation ($3 million), lower reserve for injuries and damages ($3 million) and lower healthcare costs ($2 million).

Depreciation and amortization increased $48 million in the nine months ended September 30, 2020 compared with the 2019 period primarily due to higher gas utility plant balances and higher depreciation rates.

Taxes, other than income taxes increased $14 million in the nine months ended September 30, 2020 compared with the 2019 period primarily due to higher property taxes ($29 million), state and local taxes ($1 million) and absence in 2020 of a reduction in the sales and use tax reserve upon conclusion of the audit assessment ($1 million), offset in part by higher deferral of under-collected property taxes ($17 million) and lower payroll taxes ($1 million) that includes the Employee Retention Tax Credit created under the CARES Act. See “Coronavirus Disease 2019 (COVID-19) Impacts - Impact of CARES Act on Accounting for Income Taxes,” above.

Steam

CECONY’s results of steam operations for the nine months ended September 30, 2020 compared with the 2019 period were as follows:


	For the Nine Months Ended
(Millions of Dollars)	September 30, 2020	September 30, 2019	Variation
Operating revenues	$385	$469	$(84)
Purchased power	19	25	(6)
Fuel	68	89	(21)
Other operations and maintenance	123	134	(11)
Depreciation and amortization	67	67	—
Taxes, other than income taxes	107	117	(10)
Steam operating income	$1	$37	$(36)

CECONY’s steam sales and deliveries for the nine months ended September 30, 2020 compared with the 2019 period were:


	Millions of Pounds Delivered						Revenues in Millions
	For the Nine Months Ended						For the Nine Months Ended
Description	September 30, 2020	September 30, 2019	Variation	Percent Variation			September 30, 2020	September 30, 2019	Variation	Percent Variation
General	334	394	(60)	(15.2)	%		$17	$20	$(3)	(15.0)	%
Apartment house	3,830	4,331	(501)	(11.6)			103	120	(17)	(14.2)
Annual power	8,462	10,383	(1,921)	(18.5)			245	304	(59)	(19.4)
Other operating revenues (a)	—	—	—	—			20	25	(5)	(20.0)
Total	12,626	15,108	(2,482)	(16.4)	%	(b)	$385	$469	$(84)	(17.9)	%

(a)Other steam operating revenues generally reflect changes in regulatory assets and liabilities in accordance with the company’s rate plan.

(b)After adjusting for variations, primarily weather and billing days, steam sales and deliveries decreased 8.3 percent in the nine months ended September 30, 2020 compared with the 2019 period. See “Coronavirus Disease 2019 (COVID-19) Impacts,” above.

Operating revenues decreased $84 million in the nine months ended September 30, 2020 compared with the 2019 period primarily due to the impact of warmer winter weather ($28 million), lower fuel expenses ($21 million), lower revenues from the steam rate plan due to lower usage by customers ($19 million), certain rate plan reconciliations ($10 million) and lower purchased power expenses ($6 million).

Purchased power expenses decreased $6 million in the nine months ended September 30, 2020 compared with the 2019 period due to lower unit costs ($5 million) and purchased volumes ($1 million).

Fuel expenses decreased $21 million in the nine months ended September 30, 2020 compared with the 2019 period due to lower purchased volumes from the company’s steam generating facilities ($13 million) and unit costs ($8 million).

Other operations and maintenance expenses decreased $11 million in the nine months ended September 30, 2020 compared with the 2019 period primarily due to lower costs for pension and other postretirement benefits ($6 million) and lower municipal infrastructure support costs ($5 million).

Taxes, other than income taxes decreased $10 million in the nine months ended September 30, 2020 compared with the 2019 period primarily due to higher deferral of under-collected property taxes ($17 million) and lower state and local taxes ($2 million), offset in part by higher property taxes ($8 million).

Other Income (Deductions)

Other income (deductions) decreased $107 million in the nine months ended September 30, 2020 compared with the 2019 period primarily due to higher costs associated with components of pension and other postretirement benefits other than service cost ($93 million) and the absence of the company’s share of a gain on sale of property in 2019 ($5 million).

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Net Interest Expense

~~Other income (deductions)~~Net interest expense increased $9 million in the nine months ended September 30, ~~2019~~2020 compared with the ~~2018~~2019 period primarily due to higher interest on long-term debt ($35 million), offset in part by a decrease in interest accrued on the TCJA related regulatory liability ($10 million), lower interest expense for short-term debt ($9 million) and lower interest accrued on the system benefit charge liability ($6 million).

Income Tax Expense

Income taxes decreased $72 million in the nine months ended September 30, 2020 compared with the 2019 period primarily due to lower income before income tax expense ($18 million), an increase in the amortization of excess deferred federal income taxes due to CECONY’s electric and gas rate plans that went into effect in January 2020 ($74 million) and lower state income taxes ($7 million), offset in part by the absence of the amortization of excess deferred state income taxes ($18 million), lower research and development credits in 2020 ($4 million) and lower flow-through tax benefits in 2020 for plant-related items ($3 million).

O&R


	For the Nine Months Ended September 30, 2020			For the Nine Months Ended September 30, 2019
(Millions of Dollars)	Electric	Gas	2020 Total	Electric	Gas	2019 Total	2020-2019 Variation
Operating revenues	$483	$164	$647	$493	$185	$678	$(31)
Purchased power	127	—	127	146	—	146	(19)
Gas purchased for resale	—	43	43	—	68	68	(25)
Other operations and maintenance	181	51	232	173	52	225	7
Depreciation and amortization	48	19	67	46	17	63	4
Taxes, other than income taxes	41	23	64	40	23	63	1
Operating income	$86	$28	$114	$88	$25	$113	$1

Electric

O&R’s results of electric operations for the nine months ended September 30, 2020 compared with the 2019 period were as follows:


	For the Nine Months Ended
(Millions of Dollars)	September 30, 2020	September 30, 2019	Variation
Operating revenues	$483	$493	$(10)
Purchased power	127	146	(19)
Other operations and maintenance	181	173	8
Depreciation and amortization	48	46	2
Taxes, other than income taxes	41	40	1
Electric operating income	$86	$88	$(2)

O&R’s electric sales and deliveries for the nine months ended September 30, 2020 compared with the 2019 period were:


	Millions of kWh Delivered						Revenues in Millions (a)
	For the Nine Months Ended						For the Nine Months Ended
Description	September 30, 2020	September 30, 2019	Variation	Percent Variation			September 30, 2020	September 30, 2019	Variation	Percent Variation
Residential/Religious (b)	1,414	1,339	75	5.6	%		$247	$243	$4	1.6	%
Commercial/Industrial	612	621	(9)	(1.4)			88	87	1	1.1
Retail choice customers	1,995	2,194	(199)	(9.1)			144	147	(3)	(2.0)
Public authorities	82	80	2	2.5			6	7	(1)	(14.3)
Other operating revenues (c)	—	—	—	—			(2)	9	(11)	Large
Total	4,103	4,234	(131)	(3.1)	%	(d)	$483	$493	$(10)	(2.0)	%

(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.

(d)After adjusting for weather and other variations, electric delivery volumes in O&R’s service area decreased 1.5 percent in the nine months ended September 30, 2020 compared with the 2019 period. See “Coronavirus Disease 2019 (COVID-19) Impacts,” above.

Operating revenues decreased $10 million in the nine months ended September 30, 2020 compared with the 2019 period primarily due to lower purchased power expenses ($19 million), offset in part by higher revenues from the New York electric rate plan ($13 million).

Purchased power expenses decreased $19 million in the nine months ended September 30, 2020 compared with the 2019 period due to lower unit costs ($20 million), offset in part by higher purchased volumes ($1 million).

Other operations and maintenance expenses increased $8 million in the nine months ended September 30, 2020 compared with the 2019 period primarily due to incremental costs associated with COVID-19 ($3 million), the amortization of prior deferred storm costs ($2 million), estimated food and medicine spoilage claims related to outages caused by Tropical Storm Isaias ($2 million) and higher reserve for injuries and damages ($1 million).

Depreciation and amortizationincreased ~~earnings~~$2 million in the nine months ended September 30, 2020 compared with the 2019 period primarily due to higher electric utility plant balances.

Taxes, other than income taxes increased $1 million in the nine months ended September 30, 2020 compared with the 2019 period primarily due to higher property taxes.

Gas

O&R’s results of gas operations for the nine months ended September 30, 2020 compared with the 2019 period were as follows:


	For the Nine Months Ended
(Millions of Dollars)	September 30, 2020	September 30, 2019	Variation
Operating revenues	$164	$185	$(21)
Gas purchased for resale	43	68	(25)
Other operations and maintenance	51	52	(1)
Depreciation and amortization	19	17	2
Taxes, other than income taxes	23	23	—
Gas operating income	$28	$25	$3

O&R’s gas sales and deliveries, excluding off-system sales, for the nine months ended September 30, 2020 compared with the 2019 period were:


	Thousands of Dt Delivered						Revenues in Millions (a)
	For the Nine Months Ended						For the Nine Months Ended
Description	September 30, 2020	September 30, 2019	Variation	Percent Variation			September 30, 2020	September 30, 2019	Variation	Percent Variation
Residential	6,484	6,875	(391)	(5.7)	%		$83	$98	$(15)	(15.3)	%
General	1,443	1,608	(165)	(10.3)			14	18	(4)	(22.2)
Firm transportation	5,799	6,430	(631)	(9.8)			45	44	1	2.3
Total firm sales and transportation	13,726	14,913	(1,187)	(8.0)		(b)	142	160	(18)	(11.3)
Interruptible sales	2,723	2,690	33	1.2			4	4	—	—
Generation plants	24	6	18	Large			—	—	—	—
Other	529	637	(108)	(17.0)			1	1	—	—
Other gas revenues	—	—	—	—			17	20	(3)	(15)
Total	17,002	18,246	(1,244)	(6.8)	%		$164	$185	$(21)	(11.4)	%

(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 decreased 0.5 percent in the nine months ended September 30, 2020 compared with 2019 period. See “Coronavirus Disease 2019 (COVID-19) Impacts,” above.

Operating revenues decreased $21 million in the nine months ended September 30, 2020 compared with the 2019 period primarily due to a decrease in gas purchased for resale ($25 million), offset in part by higher revenues from the New York gas rate plan ($2 million).

Gas purchased for resale decreased $25 million in the nine months ended September 30, 2020 compared with the 2019 period due to lower unit costs ($19 million) and purchased volumes ($6 million).

Other operations and maintenance expenses decreased $1 million in the nine months ended September 30, 2020 compared with the 2019 period primarily due to lower pension costs ($4 million), offset in part by incremental costs associated with the COVID-19 pandemic ($2 million) and higher gas program spending ($1 million).

Depreciation and amortization increased $2 million in the nine months ended September 30, 2020 compared with the 2019 period primarily due to higher gas utility plant balances.

Income Tax Expense

Income taxes increased $1 million in the nine months ended September 30, 2020 compared with the 2019 period primarily due to lower flow-through tax benefits on plant-related items in 2020 as compared to 2019.

Clean Energy Businesses

The Clean Energy Businesses’ results of operations for the nine months ended September 30, 2020 compared with the 2019 period were as follows:


	For the Nine Months Ended
(Millions of Dollars)	September 30, 2020	September 30, 2019	Variation
Operating revenues	$566	$696	$(130)

Gas purchased for resale	24	159	(135)
Other operations and maintenance	165	168	(3)
Depreciation and amortization	173	169	4
Taxes, other than income taxes	16	17	(1)


Operating income	$188	$183	$5

Operating revenues decreased $130 million in the nine months ended September 30, 2020 compared with the 2019 period primarily due to lower wholesale revenues ($132 million) and lower energy services revenues ($16 million) and net mark-to-market values ($3 million), offset in part by higher renewable electric production revenues ($21 million).

Gas purchased for resale decreased $135 million in the nine months ended September 30, 2020 compared with the 2019 period primarily due to lower purchased volumes.

Other operations and maintenance expenses decreased $3 million in the nine months ended September 30, 2020 compared with the 2019 period primarily due to lower energy services costs.

Depreciation and amortization increased $4 million in the nine months ended September 30, 2020 compared with the 2019 period primarily due to an increase in renewable electric production projects in operation during 2020.

Taxes, other than income taxes decreased $1 million in the nine months ended September 30, 2020 compared with the 2019 period primarily due to the Employee Retention Tax Credit created under the CARES Act. See “Coronavirus Disease 2019 (COVID-19) Impacts - Impact of CARES Act on Accounting for Income Taxes,” above.

Net Interest Expense

Net interest expense increased $13 million in the nine months ended September 30, 2020 compared with the 2019 period primarily due to higher unrealized losses on interest rate swaps in the 2020 period.

Income Tax Expense

Income taxes increased $8 million in the nine months ended September 30, 2020 compared with the 2019 period primarily due to lower income attributable to non-controlling interest ($10 million), and the absence of the adjustment for prior period federal income tax returns primarily due to higher research and development credits in 2019 ($13 million), offset in part by a tax benefit due to the change in the federal corporate income tax rate recognized for a loss carryback from the 2018 tax year to the 2013 tax year as allowed under the CARES Act signed into law during the first quarter of 2020 ($4 million), a decrease in uncertain tax position ($7 million) and higher renewable energy credits ($2 million).

Income Attributable to Non-Controlling Interest

Income attributable to non-controlling interest increased $42 million in the nine months ended September 30, 2020 compared with the 2019 period primarily due to lower losses attributable in the 2020 period to a tax equity ~~investments~~investor in ~~Mountain Valley Pipeline, LLC.~~renewable electric production projects accounted for under the HLBV method of accounting. See Note O to the Third Quarter Financial Statements.

Con Edison Transmission

Income Tax Expense

Income taxes increased $1 million in the nine months ended September 30, 2020 compared with the 2019 period primarily due to higher income before income tax expense.

Other

Income Tax Expense

Income taxes increased $2 million in the nine months ended September 30, ~~2019~~2020 compared with the ~~2018~~2019 period primarily due ~~primarily~~ to ~~higher income before~~lower consolidated state income tax ~~expense.~~benefits.

~~Other~~

~~Income Tax Expense~~

Income taxes decreased $47 million in the nine months ended September 30, 2019 compared with the 2018 period due primarily to the absence of the TCJA re-measurement of deferred tax assets associated with Con Edison’s 2017 federal net operating loss carryforward into 2018 ($42 million) and lower state income taxes ($5 million).

Liquidity and Capital Resources

The Companies’ liquidity reflects cash flows from operating, investing and financing activities, as shown on their respective consolidated statement of cash flows and as discussed below.

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The Companies’ cash, temporary cash investments and restricted cash resulting from operating, investing and financing activities for the nine months ended September 30, ~~2019~~2020 and ~~2018~~2019 are summarized as follows:


	For the Nine Months Ended September 30,														For the Nine Months Ended September 30,
	CECONY		O&R		Clean Energy Businesses		Con Edison Transmission			Other (a)		Con Edison (b)			CECONY		O&R		Clean Energy Businesses		Con Edison Transmission		Other (a)		Con Edison (b)
(Millions of Dollars)	2019	2018	2019	2018	2019	2018	2019		2018	2019	2018	2019	2018	(Millions of Dollars)	2020	2019	2020	2019	2020	2019	2020	2019	2020	2019	2020	2019
Operating activities	$1,490	$1,085	$168	$102	$285	$(7)	$150		$114	$(133)	$306	$1,960	$1,600	Operating activities	$959	$1,490	$82	$168	$810	$285	$(8)	$150	$(475)	$(133)	$1,368	$1,960
Investing activities	(2,437)	(2,498)	(163)	(147)	(142)	(195)	(143)		(106)	1	(1)	(2,884)	(2,947)	Investing activities	(2,412)	(2,437)	(150)	(163)	(438)	(142)	16	(143)	—	1	(2,984)	(2,884)
Financing activities	144	700	(20)	22	(79)	198	(9)		(8)	135	(164)	171	748	Financing activities	543	144	50	(20)	(440)	(79)	(8)	(9)	568	135	713	171
Net change for the period	(803)	(713)	(15)	(23)	64	(4)	(2)		—	3	141	(753)	(599)	Net change for the period	(910)	(803)	(18)	(15)	(68)	64	—	(2)	93	3	(903)	(753)
Balance at beginning of period	818	730	52	47	126	56	2		2	8	9	1,006	844	Balance at beginning of period	933	818	32	52	251	126	—	2	1	8	1,217	1,006
Balance at end of period (c)	$15	$17	$37	$24	$190	$52		$—	$2	$11	$150	$253	$245	Balance at end of period (c)	$23	$15	$14	$37	$183	$190	$—	$—	$94	$11	$314	$253

(a) Includes parent company and consolidation adjustments.

(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 Third Quarter Financial Statements.

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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. In addition, the decline in business activity in the Utilities’ service territory as a result of the COVID-19 pandemic has resulted and may continue to result in lower billed sales revenues and increases to the allowance for uncollectible accounts and may result in increases in write-offs of customer accounts. 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. The Utilities’ New York rate plans allow them to defer costs resulting from a change in legislation, regulation and related actions that have taken effect during the term of the rate plans once the costs exceed a specified threshold. Increases to the allowance for uncollectible accounts related to the COVID-19 pandemic have been deferred pursuant to the legislative, regulatory and related actions provisions of their rate plans. Pursuant to their rate plans, the Utilities have recovered from customers a portion of the tax liability they will pay in the future as a result of temporary differences between the book and tax basis of assets and liabilities. These temporary differences affect the timing of cash flows, but not net income, as the Companies are required to record deferred tax assets and liabilities at the current corporate tax rate for the temporary differences. For the Utilities, credits to their customers of the net benefits of the TCJA, including the reduction of the corporate tax rate to 21 percent, decrease cash flows from operating activities. See “COVID-19 Regulatory Matters” and “Other Regulatory Matters” in Note B to the Third Quarter Financial ~~Statements.~~Statements and “Coronavirus Disease 2019 (COVID-19) Impacts - Liquidity and Financing,” above.

Net income is the result of cash and non-cash (or accrual) transactions. Only cash transactions affect the Companies’ cash flows from operating activities. Principal non-cash charges or credits include depreciation, deferred income tax expense, amortizations of certain regulatory assets and liabilities, and accrued unbilled revenue. Non-cash charges or credits may also be accrued under the revenue decoupling and cost reconciliation mechanisms in the Utilities’ New York electric and gas rate plans.

Net cash flows from operating activities for the nine months ended September 30, ~~2019~~2020 for Con Edison and CECONY were ~~$360~~$592 million and ~~$405~~$531 million ~~higher,~~lower, respectively, than in the ~~2018~~2019 period. The changes in net cash flows for Con Edison and CECONY primarily reflect ~~primarily a change in the timing of pension and retiree benefit contributions~~higher accounts receivable balances from customers ($~~122~~330 million and ~~$114~~$287 million, respectively) (see “COVID-19 Regulatory Matters” in Note B to the Third Quarter Financial Statements and “Coronavirus Disease 2019 (COVID-19) Impacts - Accounting Considerations” and “Liquidity and Financing,” above), ~~lower storm restoration costs~~higher other receivables and other current assets ($~~185~~135 million and ~~$124~~$104 million, respectively), primarily due to lower ~~MTA power reliability costs ($123 million and $123 million, respectively),~~ reimbursement received for Puerto Rico related restoration costs in the 2020 period ($9594 million and ~~$95~~$94 million, respectively), higher pension and retiree benefit contributions ($121 million and $112 million, respectively), a change in pension and retiree benefit obligations ($72 million and $68 million, respectively), higher system benefit charge ($65 million and $62 million, respectively), higher cash paid for income taxes, net of refunds received ($59 million and $65 million, respectively), and for CECONY, ~~lower net payments of income tax to~~an increase in accounts receivables from affiliated companies ($~~255~~97 million), offset in part by ~~higher~~lower TCJA net benefits provided to customers in the ~~2019~~2020 period ($~~289~~240 million and ~~$287~~$240 million, respectively).

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 and recoverable and refundable energy costs within other regulatory assets and liabilities and accounts payable balances.

Cash Flows Used in Investing Activities

Net cash flows used in investing activities for Con Edison and CECONY were ~~$63~~$100 million higher and ~~$61~~$25 million lower, respectively, for the nine months ended September 30, ~~2019~~2020 compared with the ~~2018~~2019 period. The change for Con Edison primarily reflects ~~primarily a decrease~~an increase in non-utility construction expenditures at the Clean Energy Businesses (~~$50 million~~),($271 million) and the proceeds from the sale of a property formerly used by CECONY in its operations ($in 2019 ($48 ~~million) and a decrease in utility construction expenditures at CECONY ($44 million~~)million), offset in part by ~~increases in~~lower investments in electric and gas transmission projects at Con Edison Transmission (~~$36 million), cost of removal less salvage at CECONY~~in the 2020 period ($31135 million) and ~~an increase~~a decrease in utility construction expenditures at CECONY ($71 million) and O&R ($1511 million).

Cash Flows from Financing Activities

Net cash flows from financing activities for Con Edison and CECONY were ~~$577~~$542 million and ~~$556~~$399 million ~~lower,~~higher, respectively, in the nine months ended September 30, ~~2019~~2020 compared with the ~~2018~~2019 period.

In July 2020, Con Edison borrowed $820 million pursuant to an April 2020 credit agreement that was amended in June 2020 (as amended, the Supplemental Credit Agreement). Con Edison used the proceeds from the borrowing for general corporate purposes, including repayment of short-term debt bearing interest at variable rates. Pursuant to the Supplemental Credit Agreement, the borrowing bears interest at a variable rate and was converted to a term loan that matures on March 29, 2021. See Note D to the Third Quarter Financial Statements.

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In March 2019, Con Edison issued 5,649,369 shares of its common stock for $425 million upon physical settlement of the remaining shares subject to its November 2018 forward sale agreements. Con Edison used the proceeds to invest in its subsidiaries for funding of their capital requirements and to repay short-term debt incurred for that purpose.

In February 2019, Con Edison borrowed $825 million under a two-year variable-rate term loan to fund the repayment of a ~~6-month~~six-month variable-rate term loan. In June 2019, Con Edison pre-paid $150 million of the amount borrowed.

In June 2020, CECONY redeemed at maturity $350 million of 4.45 percent 10-year debentures.

In March 2020, CECONY issued $600 million aggregate principal amount of 3.35 percent debentures, due 2030 and $1,000 million aggregate principal amount of 3.95 percent debentures, due 2050, the net proceeds from the sale of which will be used to pay or reimburse the payment of, in whole or in part, existing and new qualifying eligible green expenditures, such as energy efficiency and clean transportation expenditures, that include those funded on or after January 1, 2018 until the maturity date of each series of the debentures. Pending the allocation of the net proceeds to finance or refinance eligible green expenditures, CECONY used the net proceeds for repayment of short-term debt and temporarily placed the remaining net proceeds in short-term interest-bearing instruments. See Note C to the Third Quarter Financial Statements.

In May 2019, CECONY issued $700 million aggregate principal amount of 4.125 percent debentures, due 2049, the net proceeds from the sale of which were used to repay short-term borrowings and for other general corporate purposes.

In April 2019, CECONY redeemed at maturity $475 million of 6.65 percent 10-year debentures.

In ~~June 2018, CECONY~~September 2020, O&R issued ~~$640~~$35 million aggregate principal amount of 2.02 percent debentures, due ~~2021, at a variable interest rate of 0.40 percent above three-month LIBOR~~2030 and ~~called for redemption on various dates in July and August 2018 the $636 million of CECONY’s tax-exempt debt for which the interest rates were to be determined pursuant to periodic auctions.~~

~~In May 2018, CECONY issued $700~~$40 million aggregate principal amount of ~~4.50~~3.24 percent debentures, due 2058, and $300 million aggregate principal amount of 3.80 percent debentures, due 2028, the net proceeds from the sale of which were used to repay short-term borrowings and for other general corporate purposes.

~~In April 2018, CECONY redeemed at maturity $600 million of 5.85 percent 10-year debentures.~~

2050.

In September 2019, O&R agreed to issue in November 2019 $43 million aggregate principal amount of 3.73 percent debentures, due 2049 and to issue in December 2019 $44 million aggregate principal amount of 2.94 percent debentures, due 2029 and $38 million aggregate principal amount of 3.46 percent debentures, due 2039.

~~In August and December 2018, O&R issued $150 million aggregate principal amount of 4.35 percent debentures, due 2048.~~

~~In September 2018, O&R redeemed at maturity $50 million of 6.15 percent 10-year debentures.~~

In May 2019, a Con Edison Development subsidiary borrowed $464 million, ~~at a variable-rate,~~ due 2026, secured by equity interests in solar electric production projects, the net proceeds from the sale of which were used to repay borrowings from Con Edison and for other general corporate purposes. Con Edison used a portion of the repayment to pre-pay $150 million of an $825 million two-year variable-rate term loan and the remainder to repay short-term borrowings and for other general corporate purposes. ~~The company has entered into fixed-rate interest rate swaps in connection with this borrowing. See Note L to the Third Quarter Financial Statements.~~

In September 2018, a Con Edison Development subsidiary issued $140 million aggregate principal amount of 4.41 percent Senior Notes, due 2028, secured by five of the company’s wind electric production projects.

Con Edison’s cash flows from financing for the nine months ended September 30, ~~2019~~2020 and ~~2018~~2019 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 ~~$76~~$79 million and ~~$75~~$76 million, respectively.

Cash flows used in financing activities of the Companies also reflect commercial paper issuances and repayments. The commercial paper amounts outstanding at September 30, ~~2019~~2020 and ~~2018~~2019 and the average daily balances for the nine months ended September 30, ~~2019~~2020 and ~~2018~~2019 for Con Edison and CECONY were as follows:


	2020				2019
(Millions of Dollars, except Weighted Average Yield)	Outstanding at September 30,		Daily average		Outstanding at September 30,		Daily average
Con Edison	$1,009		$1,027		$1,300		$1,122
CECONY	$991		$633		$930		$743
Weighted average yield	0.2	%	1.2	%	2.3	%	2.6	%

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2019 2018
(Millions of Dollars, except Weighted Average Yield) Outstanding at September 30,
Daily
average
Outstanding at September 30,
Daily
average
Con Edison $1,300 $1,122 $1,352 $830
CECONY $930 $743 $1,004 $447
Weighted average yield 2.3 2.6 2.3 2.1

Capital Requirements and Resources

Capital Requirements

The Clean Energy Businesses expect to accelerate $150 million of capital ~~expenditures reflected~~projects from 2021 to 2020 and have increased their estimated capital requirements in 2020 by an additional $50 million. The estimated capital requirements of the ~~October 2019 Joint Proposal~~Clean Energy Businesses for ~~new CECONY electric~~2020 and ~~gas rate plans (see “Rate Plans” in Note B~~2021 have been updated from $400 million and $400 million, respectively, to ~~the Third Quarter Financial Statements) were:~~$600 million and $250 million, respectively.

(Millions of Dollars) 2020 2021 2022
Electric $2,135 $2,137 $1,917
Gas $1,073 $1,055 $989

Contractual Obligations

Con Edison’s material obligations to make payments pursuant to contracts totaled ~~$52,720~~$55,119 million and ~~$49,264~~$54,144 million at September 30, ~~2019~~2020 and December 31, ~~2018,~~2019, respectively. The increase at September 30, ~~2019~~2020 is primarily due ~~primarily~~ to increases in long-term debt, including interest ($~~1,288~~1,987 million) and ~~interest on long-term debt~~CECONY transportation and storage purchase obligations ($~~828~~1,021 million), offset in part by a decrease in the Utilities’ Long-term Purchase Obligations (a component of “Other Purchase Obligations”) due to a change in how the company derives those amounts ($2,371 million). See "Cash Flows from Financing Activities,” above. At December 31, 2019, $8,166 million of Long-term Purchase Obligations 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 were committed to purchase less than the amount authorized. Payments for Long-term Purchase Obligations were generally assumed to be made ratably over the term of the obligations. At September 30, 2020, $5,795 million of Long-term Purchase Obligations were derived from the Utilities’ purchasing system by using a method that identifies the remaining purchase obligations.

Capital Resources

For each of the Companies, the common equity ratio at September 30, ~~2019~~2020 and December 31, ~~2018~~2019 was:


	Common Equity Ratio (Percent of total capitalization)
	September 30, 2020	December 31, 2019
Con Edison	49.3	49.6
CECONY	48.4	49.2

At September 30, 2020, the credit ratings assigned by Moody’s, S&P and Fitch to the senior unsecured debt and commercial paper of Con Edison, CECONY and O&R were as follows:


	Moody's	S&P	Fitch
Con Edison
Senior Unsecured Debt	Baa2	BBB+	BBB+
Commercial Paper	P-2	A-2	F2
CECONY
Senior Unsecured Debt	Baa1	A-	A-
Commercial Paper	P-2	A-2	F2
O&R
Senior Unsecured Debt	Baa1	A-	A-
Commercial Paper	P-2	A-2	F2

Securities ratings assigned by rating organizations are expressions of opinion and are not recommendations to buy, sell or hold securities. A securities 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.

Common Equity Ratio
(Percent of total capitalization)

September 30, 2019 December 31, 2018
Con Edison 50.8 49.0
CECONY 50.1 48.6

Assets, Liabilities and Equity

The Companies' assets, liabilities, and equity at September 30, ~~2019~~2020 and December 31, ~~2018~~2019 are summarized as follows.


	CECONY		O&R		Clean Energy Businesses		Con Edison Transmission			Other (a)		Con Edison (b)			CECONY		O&R		Clean Energy Businesses		Con Edison Transmission		Other (a)		Con Edison (b)
(Millions of Dollars)	2019	2018	2019	2018	2019	2018	2019		2018	2019	2018	2019	2018	(Millions of Dollars)	2020	2019	2020	2019	2020	2019	2020	2019	2020	2019	2020	2019
ASSETS														ASSETS
Current assets	$3,005	$3,357	$255	$263	$458	$372		$—	$32	$(137)	$(160)	$3,581	$3,864	Current assets	$3,447	$3,543	$255	$243	$460	$511	$22	$2	$20	$(27)	$4,204	$4,272
Investments	436	385	26	25	—	—	1,528		1,362	(7)	(6)	1,983	1,766	Investments	505	461	26	26	—	—	1,599	1,585	(6)	(7)	2,124	2,065
Net plant	36,885	35,374	2,299	2,210	4,033	4,148	17		17	—	—	43,234	41,749	Net plant	38,716	37,414	2,410	2,336	4,421	4,121	17	17	—	1	45,564	43,889
Other noncurrent assets	4,482	3,992	355	394	1,885	1,736	14		14	406	405	7,142	6,541	Other noncurrent assets	5,000	5,139	403	401	1,885	1,896	14	14	401	403	7,703	7,853
Total Assets	$44,808	$43,108	$2,935	$2,892	$6,376	$6,256	$1,559		$1,425	$262	$239	$55,940	$53,920	Total Assets	$47,668	$46,557	$3,094	$3,006	$6,766	$6,528	$1,652	$1,618	$415	$370	$59,595	$58,079

LIABILITIES AND SHAREHOLDERS' EQUITY	LIABILITIES AND SHAREHOLDERS' EQUITY													LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities	$3,813	$4,200	$410	$392	$1,819	$1,608	$94		$5	$83	$2	$6,219	$6,207	Current liabilities	$4,407	$4,131	$294	$311	$1,192	$1,525	$115	$135	$1,152	$185	$7,160	$6,287
Noncurrent liabilities	12,892	12,322	1,060	1,094	44	(32)	82		66	(28)	(71)	14,050	13,379	Noncurrent liabilities	13,129	13,665	1,108	1,115	217	201	108	88	(44)	(17)	14,518	15,052
Long-term debt	14,024	13,676	694	694	2,124	2,330	500		500	195	295	17,537	17,495	Long-term debt	15,557	14,614	893	818	2,838	2,400	500	500	(582)	195	19,206	18,527
Equity	14,079	12,910	771	712	2,389	2,350	883		854	12	13	18,134	16,839	Equity	14,575	14,147	799	762	2,519	2,402	929	895	(111)	7	18,711	18,213
Total Liabilities and Equity	$44,808	$43,108	$2,935	$2,892	$6,376	$6,256	$1,559		$1,425	$262	$239	$55,940	$53,920	Total Liabilities and Equity	$47,668	$46,557	$3,094	$3,006	$6,766	$6,528	$1,652	$1,618	$415	$370	$59,595	$58,079

(a) Includes parent company and consolidation adjustments.

(b) Represents the consolidated results of operations of Con Edison and its businesses.

~~Table of Contents~~

CECONY

Current assets at September 30, ~~2019~~2020 were ~~$352~~$96 million lower than at December 31, ~~2018.~~2019. The change in current assets primarily reflects a decrease in cash and temporary cash investments ($910 million) primarily due to the July ~~2019~~2020 payment of New York City semi-annual property ~~taxes ($803 million) and a decrease in other receivables ($107 million).~~taxes. The decrease in other receivables reflects primarily the receipt of payments related to costs for aid provided by CECONY for the restoration of power in Puerto Rico in the aftermath of the September 2017 hurricanes ($95 million). These decreases areis offset in part by an increase in prepayments reflecting primarily the July ~~2019~~2020 payment of New York City semi-annual property taxes, offset in part by three months of amortization, while the December ~~2018~~2019 balance reflects the amortization of the entire previous semi-annual payment ($~~499~~481 million), an increase in accounts receivables, less allowance for uncollectible accounts ($244 million) and an increase in accounts receivables from affiliated companies ($83 million).

Investments at September 30, ~~2019~~2020 were ~~$51~~$44 million higher than at December 31, ~~2018.~~2019. The change in investments primarily reflects ~~primarily~~ an increase in supplemental retirement income plan assets. See Note E to the Third Quarter Financial Statements.

Net plant at September 30, ~~2019~~2020 was ~~$1,511~~$1,302 million higher than at December 31, ~~2018.~~2019. The change in net plant primarily reflects ~~primarily~~ an increase in electric ($~~1,141~~1,030 million), gas ($447 million) and ~~gas~~steam ($~~717~~37 million) plant balances and an increase in construction work in progress ($267 million), offset in part by an increase in accumulated depreciation ($~~516~~649 million).

Other noncurrent assets at September 30, ~~2019~~2020 were ~~$490~~$139 million ~~higher~~lower than at December 31, ~~2018.~~2019. The change in other noncurrent assets ~~reflects~~ primarily ~~the adoption of ASU No. 2016-02, “Leases (Topic 842)” ($610 million). See Note I to the Third Quarter Financial Statements. The change also~~ reflects primarily an increase in the regulatory asset for deferred derivative losses ($79 million), property tax reconciliation ($64 million) and MTA power reliability deferral ($16 million) which reflects costs incurred and deferred as a regulatory asset in the 2019 period. See “Other Regulatory Matters” in Note B to the Third Quarter Financial Statements. These increases are offset, in part, by a decrease in the regulatory asset for unrecognized pension and other postretirement costs to reflect the final actuarial valuation, as measured at December 31, ~~2018,~~2019, of the pension and other retiree benefit plans in accordance with the accounting rules for retirement benefits ($~~295~~618 million). See Notes B, E and F to the Third Quarter Financial Statements. The change in the regulatory asset also reflects the year's amortization of accounting costs. This decrease is offset in part by an increase in the regulatory assets for deferred pension and other postretirement benefits ($190 million), deferrals for increased costs related to the COVID-19 pandemic ($101 million), deferred derivative losses ($69 million), deferred storm costs ($60 million) and an increase in the injuries and damages receivable ($40 million). See “Other Regulatory Matters” in Note B and Note H to the Third Quarter Financial Statements.

Current liabilities at September 30, ~~2019~~2020 were ~~$387~~$276 million higher than at December 31, 2019. The change in current liabilities primarily reflects increases in long-term debt due within one year ($290 million) and accrued interest ($97 million), offset in part by a decrease in notes payable ($146 million).

Noncurrent liabilities at September 30, 2020 were $536 million lower than at December 31, 2018. The change in current liabilities reflects primarily a decrease in notes payable ($262 million) (see Note D to the Third Quarter Financial Statements) and lower debt due within one year as of September 30, 2019 ($125 million).

~~Noncurrent liabilities at September 30, 2019 were $570 million higher than at December 31, 2018.~~2019. The change in noncurrent liabilities ~~reflects~~ primarily ~~the adoption of ASU No. 2016-02, “Leases (Topic 842)” ($595 million). See Note I to the Third Quarter Financial Statements. The change also~~ reflects an increase in deferred income taxes and unamortized investment tax credits ($343 million), which reflects primarily the accelerated method/life of tax depreciation, repair deductions and the prepayment of New York City property taxes~~. See Note J to the Third Quarter Financial Statements. These increases are offset, in part, by~~ a decrease in the liability for pension and retiree benefits ($~~375~~690 million)~~, which~~ that primarily reflects ~~contributions to the pension and other retiree benefit plans made by the Utilities in 2019 and~~ the final actuarial valuation, as measured at December 31, ~~2018,~~2019, of the plans in accordance with the accounting rules for retirement benefits. See Notes E and F to the Third Quarter Financial Statements. The change also reflects a decrease in the regulatory liability for future income tax ($152 million) and TCJA net benefits ($127 million). These decreases are offset in part by a change in deferred income taxes and unamortized investment tax credits ($374 million) that primarily reflects accelerated tax depreciation, repair deductions and the amortization of excess deferred federal income taxes due to the TCJA. See Note J to the Third Quarter Financial Statements.

Long-term debt at September 30, ~~2019~~2020 was ~~$348~~$943 million higher than at December 31, ~~2018.~~2019. The change in long-term debt primarily reflects ~~primarily~~ the ~~May 2019~~March 2020 issuance of ~~$700~~$1,600 million of debentures, offset in part by the reclassification of ~~$350~~$640 million of long-term debt ~~due June 2020~~ to long-term debt due within one year. See "Liquidity and Capital Resources -– Cash Flows From Financing Activities" above and Note C to the Third Quarter Financial Statements.

Equity at September 30, ~~2019~~2020 was ~~$1,169~~$428 million higher than at December 31, ~~2018.~~2019. The change in equity primarily reflects ~~primarily~~net income for the nine months ended September 30, 2020 ($963 million) and capital contributions from parent ($~~875~~200 million) in ~~2019~~2020, offset in part by common stock dividends to parent ($737 million) in 2020.

O&R

Net plant at September 30, 2020 was $74 million higher than at December 31, 2019. The change in net plant primarily reflects an increase in electric ($83 million) and gas ($28 million) plant balances and an increase in construction work in progress ($8 million), offset in part by an increase in accumulated depreciation ($46 million).

Current liabilities at September 30, 2020 were $17 million lower than at December 31, 2019. The change in current liabilities primarily reflects a decrease in accrued taxes to affiliated companies ($12 million), a decrease in the current regulatory liability for refundable energy ($7 million) and revenue decoupling mechanism reconciliation ($7 million), offset in part by higher accounts payable ($12 million).

Long-term debt at September 30, 2020 was $75 million higher than at December 31, 2019. The change in long-term debt reflects the September 2020 issuance of $75 million of debentures. See "Liquidity and Capital Resources – Cash Flows From Financing Activities" above.

Equity at September 30, 2020 was $37 million higher than at December 31, 2019. The change in equity primarily reflects net income for the nine months ended September 30, 2020 ($57 million), capital contributions from parent ($10 million) in 2020 and an increase in other comprehensive income ($7 million), offset by common stock dividends to parent ($36 million) in 2020.

Clean Energy Businesses

Current assets at September 30, 2020 were $51 million lower than at December 31, 2019. The change in current assets primarily reflects a decrease in accrued receivables and cash.

Net plant at September 30, 2020 was $300 million higher than at December 31, 2019. The change in net plant primarily reflects additional capital expenditures, offset in part by an increase in accumulated depreciation.

Other noncurrent assets at September 30, 2020 were $11 million lower than at December 31, 2019. The change in other noncurrent assets primarily reflects the amortization of the purchase power agreement intangible assets.

Current liabilities at September 30, 2020 were $333 million lower than at December 31, 2019. The change in current liabilities primarily reflects the reclassification of the company’s PG&E-related non-recourse project debt with a maturity longer than one year from long-term debt due within one year to long-term debt ($898 million) (see Note C to the Third Quarter Financial Statements), offset in part by the reclassification of an intercompany loan agreement from the parent company from long-term debt to current liabilities ($400 million) and additional working capital requirements.

Noncurrent liabilities at September 30, 2020 were $16 million higher than at December 31, 2019. The change in noncurrent liabilities primarily reflects the change in the fair value of derivative liabilities, offset in part by the change

in deferred taxes and the reduction of lease liability associated with the adoption of ASU No. 2016-02 “Leases (Topic 842)."

Long-term debt at September 30, 2020 was $438 million higher than at December 31, 2019. The change in long-term debt primarily reflects the reclassification of the company’s PG&E-related non-recourse project debt with a maturity longer than one year from long-term debt due within one year to long-term debt ($898 million) (see Note C to the Third Quarter Financial Statements), offset in part by the reclassification of an intercompany loan agreement from the parent company from long-term debt to current liabilities ($400 million).

Equity at September 30, 2020 was $117 million higher than at December 31, 2019. The change in equity primarily reflects capital contributions from parent ($100 million) in 2020, an increase in noncontrolling interest ($26 million) in 2020 and net income for the nine months ended September 30, ~~2019~~2020 ($~~978~~8 million), offset in part by common stock dividends to parent ($~~685~~16 million) in ~~2019.~~2020.

~~O&R~~Con Edison Transmission

Current assets at September 30, ~~2019~~2020 were $8$20 million higher than at December 31, 2019. The change in current assets primarily reflects a receivable of $19 million from Crestwood Pipeline and Storage Northeast LLC (Crestwood), the joint venture partner in Stagecoach Gas Services, LLC. The agreement between Crestwood and Con Edison Gas Pipeline and Storage, LLC (CET Gas) provides for payments from Crestwood to CET Gas for shortfalls in meeting certain earnings growth performance targets. The payment is expected to total $57 million ($19 million of which is due in the first quarter 2021 and was recorded as a receivable by CET Gas in March 2020, with an additional $19 million plus interest due in each of January 2022 and January 2023). See "Con Edison Transmission" below.

Investments at September 30, 2020 were $14 million higher than at December 31, 2019. The change in investments primarily reflects increased allowance for funds used during construction (AFUDC) income from Mountain Valley Pipeline, LLC ($44 million) and investment income from NY Transco ($6 million), offset in part by the decrease in CET Gas' investment in Stagecoach Gas Services, LLC due to the receivable from Crestwood described above ($19 million) and investment income less partnership distribution from Stagecoach Services ($16 million).

Current liabilities at September 30, 2020 were $20 million lower than at December 31, ~~2018.~~2019. The change in current ~~assets~~liabilities primarily reflects ~~primarily~~ a ~~decrease~~reduction in ~~cash and temporary cash investments ($14 million) and customer accounts~~

short-term borrowings under an intercompany capital funding facility.

~~Table of Contents~~

receivables, less allowance for uncollectible accounts ($11 million). These decreases are offset, in part, by an increase in prepayments reflecting primarily the property tax payments made in the third quarter of 2019 that are amortized by year end ($18 million).

~~Net plant~~Noncurrent liabilities at September 30, ~~2019 was $89~~2020 were $20 million higher than at December 31, ~~2018. The change in net plant reflects primarily an increase in electric ($64 million) and gas ($47 million) plant balances, offset, in part, by an increase in accumulated depreciation ($29 million).~~

Other noncurrent assets at September 30, 2019 were $39 million lower than at December 31, 2018. The change in other noncurrent assets reflects primarily a decrease in the regulatory asset for unrecognized pension and other postretirement costs to reflect the final actuarial valuation, as measured at December 31, 2018, of the pension and other retiree benefit plans in accordance with the accounting rules for retirement benefits ($25 million). The change in the regulatory asset also reflects the year's amortization of accounting costs. The change also reflects a decrease in the regulatory asset for deferred storm costs ($7 million), environmental remediation costs ($5 million) and property tax reconciliation ($5 million).

~~Current liabilities at September 30, 2019 were $18 million higher than at December 31, 2018. The change in current liabilities reflects primarily an increase in accounts payable.~~

~~Noncurrent liabilities at September 30, 2019 were $34 million lower than at December 31, 2018.~~2019. The change in noncurrent liabilities reflects primarily a decrease in the liability for pension and retiree benefits that primarily reflects contributions to the pension and other retiree benefit plans made by the Utilities in 2019. See Notes E and F to the Third Quarter Financial Statements.

Equity at September 30, 2019 was $59 million higher than at December 31, 2018. The change in equity reflects primarily net income for the nine months ended September 30, 2019 ($60 million), a capital contribution from parent ($30 million) in 2019 and an increase in other comprehensive income ($5 million), offset, in part, by common stock dividends to parent ($35 million) in 2019.

~~Clean Energy Businesses~~

~~Current assets at September 30, 2019 were $86 million higher than at December 31, 2018. The change in current assets reflects primarily increases in restricted cash and accrued unbilled revenue.~~

Net plant at September 30, 2019 was $115 million lower than at December 31, 2018. The change in net plant reflects primarily depreciation during the nine months ended September 30, 2019, investment tax credits and the reduction in the capitalized asset and related liability for asset retirement obligations for certain property leased by renewable electric production projects, offset, in part, by additional capital expenditures.

Other noncurrent assets at September 30, 2019 were $149 million higher than at December 31, 2018. The change in other noncurrent assets reflects primarily the adoption of ASU No. 2016-02, “Leases (Topic 842).” See Note I to the Third Quarter Financial Statements.

Current liabilities at September 30, 2019 were $211 million higher than at December 31, 2018. The change in current liabilities reflects primarily the reclassification of the PG&E-related project debt from long-term debt to long-term debt due within one year ($990 million), offset, in part, by the repayment of a borrowing under a 6-month term loan agreement ($825 million). See Note C to the Third Quarter Financial Statements.

Noncurrent liabilities at September 30, 2019 were $76 million higher than at December 31, 2018. The change in noncurrent liabilities reflects primarily the adoption of ASU No. 2016-02 “Leases (Topic 842)” ($222 million), offset, in part, by the reduction in the capitalized asset and related liability for asset retirement obligations for certain property leased by renewable electric production projects ($98 million) and an increase in deferred income taxes and unamortized investment tax credits ~~($81 million), which~~that reflects primarily ~~the accelerated method/life of tax depreciation and additional unamortized investment tax credits on renewable energy projects. See Note I to the Third Quarter Financial Statements.~~

~~Long-term debt at September 30, 2019 was $206 million lower than at December 31, 2018. The change~~timing differences associated with investments in long-term debt reflects primarily the reclassification of the PG&E-related project debt to long-term debt due within one year ($990 million), offset, in part, by an $825 million borrowing from parent company of the proceeds of parent

partnerships.

~~Table of Contents~~

company's February 2019 two-year variable-rate term loan agreement, $450 million of which was repaid to parent company, and a borrowing of $464 million, due 2026, secured by equity interests in solar electric production projects. See Note C to the Third Quarter Financial Statements.

Equity at September 30, ~~2019~~2020 was ~~$39~~$34 million higher than at December 31, ~~2018.~~2019. The change in equity ~~reflects~~ primarily ~~an increase in noncontrolling interest ($62 million), offset, in part, by a net loss for the nine months ended September 30, 2019 ($19 million).~~

~~CET~~

~~Current assets at September 30, 2019 were $32 million lower than at December 31, 2018. The change in current assets~~ reflects ~~an increased investment in Mountain Valley Pipeline, LLC and a NY Transco transmission project. See "Con Edison Transmission" below.~~

Investments at September 30, 2019 were $166 million higher than at December 31, 2018. The change in investments reflects primarily increased investment in Mountain Valley Pipeline, LLC and a NY Transco transmission project.

~~Equity at September 30, 2019 was $29 million higher than at December 31, 2018. The change in equity reflects primarily~~ net income for the nine months ended September 30, ~~2019~~2020 ($3842 million), offset ~~in part,~~ by common stock dividends to parent ($98 million) in ~~2019.~~2020.

Off-Balance Sheet Arrangements

~~In May 2019, Con Edison entered into a forward sale agreement which met the SEC definition of an off-balance sheet arrangement. See Note C to the Third Quarter Financial Statements. None~~At September 30, 2020, none of the Companies’ ~~other~~ transactions, agreements or other contractual arrangements ~~meet~~met the SEC definition of off-balance sheet arrangements.

Regulatory Matters

For information about the Utilities’ regulatory matters, see Note B to the Third Quarter Financial Statements.

Environmental Matters

In May 2019, New York City enacted a law designed to reduce greenhouse gas (GHG) emissions from large buildings 40 percent from 2005 levels by 2030. Building owners may achieve compliance through operational changes, building retrofits, the purchase of greenhouse gas offsets, the purchase of renewable energy credits and the use of clean distributed energy resources. CECONY is unable to predict the impact on it of the implementation of this law.

In June 2019, the U.S. Environmental Protection Agency announced its Affordable Clean Energy (ACE) rule in conjunction with the repeal of its Clean Power Plan. In September 2019, Con Edison, as part of a coalition of public and private electric utilities, filed a petition in the United States Court of Appeals for the District of Columbia Circuit to challenge the Environmental Protection Agency’s ACE rule and the repeal of the Clean Power Plan. The ACE rule could have potential cost implications for the utilities because it has the effect of limiting flexibility to use measures such as emissions trading and averaging to cost-effectively meet emissions limits. The ACE rule could also adversely impact initiatives to develop renewable energy sources and promote the use of electric vehicles.

In July 2019, New York State enacted a law that establishes a program requiring 70 percent of the electricity procured by load serving entities regulated by the NYSPSC to be produced by renewable energy systems by 2030, and requiring the statewide electrical demand system to have zero emissions by 2040. The law also codifies state targets for energy efficiency (end-use energy savings of 185 trillion British thermal units below 2025 energy-use forecast), offshore wind (9,000 megawatts (MW) by 2035), solar (6,000 MW by 2025) and energy storage (3,000 MW by 2030). In addition, the law establishes a climate action council to recommend measures to attain the law’s GHG limits, including measures to reduce emissions by displacing fossil-fuel fired electricity with renewable electricity or energy efficiency. The law requires the New York State Department of Environmental Conservation to issue 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.

~~Table of Contents~~

For ~~additional~~ information about the Companies’ environmental matters, see Note G to the Third Quarter Financial Statements.

Clean Energy Businesses

The following table provides information about the Clean Energy Businesses' renewable electric production projects that are in operation and/or in construction at September 30, ~~2019:~~2020:

Project Name

Generating
Capacity
(MW AC)

Power Purchase Agreement (PPA) Term (In Years) (a)

Actual/Expected
In-Service Date (b)

State

PPA Counterparty (c)

Utility Scale

Solar

PJM assets

(d)

2011/2013

New Jersey/Pennsylvania

Various

New England assets

Various

2011/2017

Massachusetts/Rhode Island

Various

California Solar (e)

110

2012/2013

California

PG&E

Mesquite Solar 1 (e)

165

2013

Arizona

PG&E

Copper Mountain Solar 2 (e)

150

2013/2015

Nevada

PG&E

Copper Mountain Solar 3 (e)

255

2014/2015

Nevada

SCPPA

California Solar 2 (e)

2014/2016

California

SCE/PG&E

Texas Solar 4 (e)

2014

Texas

City of San Antonio

Texas Solar 5 (e)

100

2015

Texas

City of San Antonio

Texas Solar 7 (e)

112

2016

Texas

City of San Antonio

California Solar 3 (e)

110

2016/2017

California

SCE/PG&E

Upton Solar (e)

158

2017

Texas

City of Austin

California Solar 4 (e)

240

2017/2018

California

SCE

Copper Mountain Solar 1 (e)

2018

Nevada

PG&E

Copper Mountain Solar 4 (e) (f)

2018

Nevada

SCE

Mesquite Solar 2 (e) (f)

100

2018

Arizona

SCE

Mesquite Solar 3 (e) (f)

150

2018

Arizona

WAPA (U.S. Navy)

Great Valley Solar (e) (f)

200

2018

California

MCE/SMUD/PG&E/SCE

Crane Solar

150

2020

Texas

Vistra

Other

Various

Total Solar

2,395

Wind

Broken Bow II (e)

2014

Nebraska

NPPD

Wind Holdings (e)

180

Various

South Dakota/ Montana

NWE/Basin Electric

Adams Rose Wind (e)

2016

Minnesota

Dairyland

Coram Wind (e)

102

2016

California

PG&E

Other

Various

Total Wind

410

Total MW (AC) in Operation

2,805

Total MW (AC) in Construction

436

Total MW (AC) Utility Scale

3,241

Behind the Meter

Total MW (AC) in Operation

Total MW (AC) in Construction

Total MW Behind the Meter

Project Name Generating
Capacity (MW AC) Power Purchase Agreement (PPA) Term
(In Years) (a) Actual/Expected
In-Service Date (b) Location
(State) PPA Counterparty (c)
Utility Scale

Solar

PJM assets 53 (d) 2011/2013 New Jersey/Pennsylvania Various
New England assets 24 Various 2011/2017 Massachusetts/Rhode Island Various
California Solar (e) (g) 110 25 2012/2013 California PG&E
Mesquite Solar 1 (e) (g) 165 20 2013 Arizona PG&E
Copper Mountain Solar 2 (e) (g) 150 25 2013/2015 Nevada PG&E
Copper Mountain Solar 3 (e) (g) 255 20 2014/2015 Nevada SCPPA
California Solar 2 (e) 80 20 2014/2016 California SCE/PG&E
Texas Solar 4 (e) 40 25 2014 Texas City of San Antonio
Texas Solar 5 (e) 95 25 2015 Texas City of San Antonio
Texas Solar 7 (e) 106 25 2016 Texas City of San Antonio
California Solar 3 (e) 110 20 2016/2017 California SCE/PG&E
Upton Solar (e) 158 25 2017 Texas City of Austin
Panoche Valley 140 20 2017/2018 California SCE
Copper Mountain Solar 1 (e) 58 12 2018 Nevada PG&E
Copper Mountain Solar 4 (f) (e) 94 20 2018 Nevada SCE
Mesquite Solar 2 (f) (e) 100 18 2018 Arizona SCE
Mesquite Solar 3 (f) (e) 150 23 2018 Arizona WAPA (Navy)
Great Valley Solar (f) (e) 200 17 2018 California MCE/SMUD/PG&E/SCE
Wistaria Solar 100 20 2018 California SCE
Other 26 Various Various Various Various
Total Solar 2,214

Wind

Broken Bow II (e) 75 25 2014 Nebraska NPPD
Wind Holdings (e) 180 Various Various Various NWE/Basin Electric
Adams Rose Wind 23 7 2016 Minnesota Dairyland
Coram Wind (e) 102 16 2016 California PG&E
Other 22 Various Various Various Various
Total Wind 402

Total MW (AC) in Operation 2,616

Total MW (AC) in Construction 18

Total MW (AC) Utility Scale 2,634

Behind the Meter

Total MW (AC) in Operation 46

Total MW (AC) in Construction 8

Total MW Behind the Meter 54


~~(a)~~	~~Represents Power Purchase Agreement (PPA)~~(a)Represents PPA contractual term or remaining term ~~from Con Edison Development’s date of acquisition.~~


~~(b)~~	~~Represents Actual/Expected In-Service Date or Con Edison Development's date of acquisition.~~


~~(c)~~	PPA Counterparties include: Pacific Gas and Electric Company (PG&E), Southern California Public Power Authority (SCPPA), Southern California Edison Company (SCE), Western Area Power Administration (WAPA), Marin Clean Energy (MCE), Sacramento Municipal Utility District (SMUD), Nebraska Public Power District (NPPD) and NorthWestern Energy (NWE)


~~(d)~~	~~Solar renewable energy credit hedges are in place, in lieu of PPAs, through 2022.~~


~~(e)~~	~~Project has been pledged as security for project debt financing.~~


~~(f)~~	~~Projects are financed with tax equity. See Note N to the Third Quarter Financial Statements.~~


~~(g)~~	~~Acquired remaining 50% interest in projects/portfolios in 2018.~~

~~Table of Contents~~

~~Con Edison Development~~

In January 2019, PG&E filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code. The output of Con Edison Development renewable electric production projects with an aggregate of 680 MW (AC) of generating capacity (PG&E Projects) is sold to PG&E under long-term power purchase agreements (PG&E PPAs). At September 30, 2019, Con Edison’s consolidated balance sheet included $827 million of net non-utility plant relating to the PG&E Projects, $1,075 million of intangible assets relating to the PG&E PPAs, $287 million of net non-utility plant of additional projects that secure the related project debt and $1,012 million of non-recourse related project debt. The PG&E bankruptcy is an event of default under the PG&E PPAs. Pursuant to the related project debt agreements, distributions from the ~~related projects to Con~~date of acquisition.

(b)Represents Actual/Expected In-Service Date or date of acquisition.

(c)PPA Counterparties include: Pacific Gas and Electric Company (PG&E), Southern California Public Power Authority (SCPPA), Southern California Edison ~~Development have been suspended. Unless the lenders for the related project debt otherwise agree, the lenders may, upon written notice, declare principal~~Company (SCE), Western Area Power Administration (WAPA), Marin Clean Energy (MCE), Sacramento Municipal Utility District (SMUD), Nebraska Public Power District (NPPD) and ~~interest on the related project debt to be due and payable immediately and, if such amounts are not timely paid, foreclose on the related projects. See~~NorthWestern Energy (NWE). For information about PG&E’s emergence from bankruptcy, see “Long-Lived and Intangible Assets” in Note A ~~and Note C~~ to the Third Quarter Financial Statements.

(d)Solar renewable energy credit hedges are in place, in lieu of PPAs, through 2024.

~~Con Edison Development's renewable~~(e)Project has been pledged as security for project debt financing.

(f)Projects are financed with tax equity. See Note O to the Third Quarter Financial Statements.

Renewable Electric Generation

Renewable electric production volumes from utility scale assets for the three and nine months ended September 30, ~~2019~~2020 compared with the ~~2018~~2019 period were:


	Millions of kWh
	For the Three Months Ended					For the Nine Months Ended
Description	September 30, 2020	September 30, 2019	Variation	Percent Variation		September 30, 2020	September 30, 2019	Variation	Percent Variation
Renewable electric production projects
Solar	1,667	1,710	(43)	(2.5)	%	4,606	4,443	163	3.7	%
Wind	303	317	(14)	(4.4)	%	1,042	978	64	6.5	%
Total	1,970	2,027	(57)	(2.8)	%	5,648	5,421	227	4.2	%

Millions of kWh
For the Three Months Ended For the Nine Months Ended
Description September 30, 2019
September 30, 2018
Variation
Percent Variation
September 30, 2019 September 30, 2018 Variation Percent Variation
Renewable electric production projects
Solar 1,710
752
958
Large
4,443 2,087 2,356 Large
Wind 317
245
72
29.4 % 978 776 202 26.0 %
Total 2,027
997 1,030 Large
5,421 2,863 2,558 89.3 %

Con Edison Transmission

CET ~~Electric~~Gas

In April 2019, the New York Independent System Operator (NYISO) selected a transmission project that was jointly proposed by National Grid and NY Transco ($600 million estimated cost, excluding certain interconnection costs that are not yet determined) that would increase transmission capacity by 1,850 MW between upstate and downstate when combined with another developer’s project that was also selected by the NYISO. The siting, construction and operation of the projects will require approvals and permits from appropriate governmental agencies and authorities, including the NYSPSC. The NYISO indicated it will work with the developers to enter into agreements for the development and operation of the projects, including a schedule for entry into service by December 2023.

~~CET Gas~~

~~In October 2019,~~November 2020, the operator of the Mountain Valley Pipeline, which is being constructed by a joint venture in which CET Gas ~~has a 12.5~~owns an 11.8 percent ~~ownership~~ interest (that is expected to be reduced to below 10 percent based on the current project cost estimate and CET Gas’ capping of its cash contributions to the joint venture), indicated that, subject to receipt of certain authorizations and resolution of certain challenges, it ~~now expects a late 2020 full~~is targeting an in-service date for the project during the second half of 2021 at an overall project cost of ~~$5,300~~$5,800 million to ~~$5,500~~$6,000 million, excluding allowance for funds used during construction. ~~CET Gas, as it is permitted~~Due to ~~do under~~ the uncertainty regarding the timing of permitting and the outcome of any legal challenges, in August 2020, the Mountain Valley Pipeline joint venture ~~agreement, plans~~filed a request with the FERC for and, in October 2020, the FERC granted, an extension of time to ~~limit its cash contributions to~~complete the ~~joint venture to approximately $530 million, in which case its ownership interest in the joint venture would be reduced to approximately 10 percent (based on the current~~ project ~~cost estimate).~~for an additional two years through October 13, 2022. At September 30, ~~2019,~~2020, CET Gas’s cash contributions to the joint venture amounted to ~~$488~~$530 million.

Financial and Commodity Market Risks

The Companies are subject to various risks and uncertainties associated with financial and commodity markets. The most significant market risks include interest rate risk, commodity price risk and investment risk.

Interest Rate Risk

The Companies’ interest rate risk ~~relates~~ primarily ~~to variable rate debt and~~relates 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 subsidiaries manage interest rate risk through the issuance of mostly fixed-rate debt with varying maturities and through opportunistic refinancing of debt. The Clean Energy Businesses ~~also~~ use interest rate ~~swaps.~~swaps to exchange variable-rate project financed debt for a fixed interest rate. See Note LM to the Third Quarter Financial Statements. Con Edison and CECONY estimate that at September 30, ~~2019,~~2020, a 10 percent increase in interest rates applicable to its variable rate debt would result in an increase in annual interest expense of $7$1 million and ~~$4 million,~~an immaterial amount, respectively. Under CECONY’s current electric, gas

~~Table of Contents~~

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.

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 LM to the Third Quarter Financial Statements.

Con Edison estimates that, as of September 30, ~~2019,~~2020, a 10 percent decline in market prices would result in a decline in fair value of ~~$83~~$101 million for the derivative instruments used by the Utilities to hedge purchases of electricity and gas, of which ~~$78~~$95 million is for CECONY and $5$6 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. In accordance with provisions approved by state regulators, the Utilities generally recover from customers the costs they incur for energy purchased for their customers, including gains and losses on certain derivative instruments used to hedge energy purchased and related costs.

The Clean Energy Businesses use a value-at-risk (VaR) model to assess the market price risk of their portfolio of electricity and gas commodity fixed-price purchase and sales commitments, physical forward contracts, generating assets and commodity derivative instruments. VaR represents the potential change in fair value 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 change from forecast. Since the VaR calculation involves complex methodologies and estimates and assumptions that are based on past experience, it is not necessarily indicative of future results. VaR for the portfolio, assuming a one-day holding period, for the nine months ended September 30, ~~2019~~2020 and the year ended December 31, ~~2018,~~2019, respectively, was as follows:


95% Confidence Level, One-Day Holding Period	September 30, 2020	December 31, 2019
	(Millions of Dollars)
Average for the period	$—	$—
High	—	1
Low	—	—

95% Confidence Level, One-Day Holding Period September 30, 2019
December 31, 2018
(Millions of Dollars)
Average for the period
$—

$—
High 1
1
Low —
—

Investment Risk

The Companies’ investment risk relates to the investment of plan assets for their pension and other postretirement benefit ~~plans and~~plans. Con Edison's investment risk also relates to the investments of Con Edison Transmission that are accounted for under the equity method. See "Investments" in Note A to the Third Quarter Financial Statements.

The Companies’ current investment policy for pension plan assets includes investment targets of 45 to 55 percent equity securities, 33 to 43 percent debt securities and 10 to 14 percent real estate. At September 30, ~~2019,~~2020, the pension plan investments consisted of 5051 percent equity securities, 3938 percent debt securities and 11 percent real estate.

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.

Material Contingencies

~~For information about the PG&E bankruptcy, see “Long-Lived and Intangible Assets” in Note A and Note C to the Third Quarter Financial Statements.~~ For information concerning potential liabilities arising from the Companies’ ~~other~~ material contingencies, see "Other Regulatory Matters" in Note B and Notes G and H to the Third Quarter Financial Statements.

~~Table of Contents~~

Item 3: Quantitative and Qualitative Disclosures About Market Risk

For information about the Companies’ primary market risks associated with activities in derivative financial instruments, other financial instruments and derivative commodity instruments, see “Financial and Commodity Market Risks,” in Part I, Item 2 of this report, which information is incorporated herein by reference.

Item 4: 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.

There was no change in the Companies’ internal control over financial reporting that occurred during the Companies’ most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Companies’ internal control over financial reporting.

~~Table of Contents~~

Part II Other Information

Item 1: Legal Proceedings

For information about certain legal proceedings affecting the Companies, see ~~the information on the PG&E~~

~~bankruptcy under "Long-Lived and Intangible Assets" in Note A and Note C,~~ "Other Regulatory Matters" in Note B and Notes G and H to the financial statements in Part I, Item 1 of this report, which information is incorporated herein by reference.

Item 1A: Risk Factors

~~There were no material changes in~~Please see below the new risk factor affecting the Companies’ ~~risk factors compared~~businesses, in addition to those ~~disclosed~~discussed in Item 1A of the Form 10-K.

We face risks related to health epidemics and other outbreaks, including the COVID-19 pandemic.

The COVID-19 pandemic has impacted, and continues to impact, countries, communities, supply chains and markets. During 2020, our service territories included some of the most severely impacted counties in the United States. As a result of the COVID-19 pandemic, we may face an extended economic slowdown in our service territories that could have a material impact on our liquidity, financial condition, and results of operations.

We will continue to monitor developments relating to the COVID-19 pandemic; however, we cannot predict the extent to which COVID-19 may have a material impact on our business operations, liquidity, financial condition, and results of operations. The extent to which COVID-19 may impact these matters will depend on future developments that are highly uncertain and cannot be predicted, including new information concerning the severity of COVID-19, actions that federal, state and local governmental or regulatory agencies may take in response to COVID-19, and other actions taken to contain it or treat its impact, among others. See “Coronavirus Disease 2019 (COVID-19) Impacts” in Item 2 and “COVID-19 Regulatory Matters” in Note B.

Item 6: Exhibits

Con Edison



Exhibit 10.1			Amendment Two to the Consolidated Edison, Inc. ~~Supplemental Defined Contribution Pension~~Stock Purchase Plan
Exhibit 31.1.1			Rule 13a-14(a)/15d-14(a) Certifications – Chief Executive Officer.
Exhibit 31.1.2			Rule 13a-14(a)/15d-14(a) Certifications – Chief Financial ~~Officer.~~Officer.
Exhibit 32.1.1			Section 1350 Certifications – Chief Executive Officer.
Exhibit 32.1.2			Section 1350 Certifications – Chief Financial Officer.
Exhibit 101.INS			XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
Exhibit 101.SCH			XBRL Taxonomy Extension Schema.
Exhibit 101.CAL			XBRL Taxonomy Extension Calculation Linkbase.
Exhibit 101.DEF			XBRL Taxonomy Extension Definition Linkbase.
Exhibit 101.LAB			XBRL Taxonomy Extension Label Linkbase.
Exhibit 101.PRE			XBRL Taxonomy Extension Presentation Linkbase.
Exhibit 104			Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document.

CECONY



Exhibit 31.2.1			Rule 13a-14(a)/15d-14(a) Certifications – Chief Executive Officer.
Exhibit 31.2.2			Rule 13a-14(a)/15d-14(a) Certifications – Chief Financial Officer.
Exhibit 32.2.1			Section 1350 Certifications – Chief Executive Officer.
Exhibit 32.2.2			Section 1350 Certifications – Chief Financial Officer.
Exhibit 101.INS			XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
Exhibit 101.SCH			XBRL Taxonomy Extension Schema.
Exhibit 101.CAL			XBRL Taxonomy Extension Calculation Linkbase.
Exhibit 101.DEF			XBRL Taxonomy Extension Definition Linkbase.
Exhibit 101.LAB			XBRL Taxonomy Extension Label Linkbase.
Exhibit 101.PRE			XBRL Taxonomy Extension Presentation Linkbase.
Exhibit 104			Cover Page Interactive Data File - the cover page XBRL 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.

~~Table of Contents~~

Signatures

Pursuant to the requirements 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.



	Consolidated Edison, Inc.
	Consolidated Edison Company of New York, Inc.

Date: November ~~4, 2019~~5, 2020	By	/s/ Robert Hoglund
		Robert Hoglund Senior Vice President, Chief Financial Officer and Duly Authorized Officer

8691



Commission File Number	Exact name of registrant as specified in its charter and principal executive office address and telephone number					State of Incorporation	I.R.S. Employer ID. Number
1-14514	Consolidated Edison, Inc.					New York	13-3965100
	4 Irving Place,		New York,	New York	10003
	(212)	460-4600
1-1217	Consolidated Edison Company of New York, Inc.					New York	13-5009340
	4 Irving Place,		New York,	New York	10003
	(212)	460-4600



Consolidated Edison, Inc. (Con Edison)	Yes	☒	No ☐
Consolidated Edison Company of New York, Inc. (CECONY)	Yes	☒	No ☐



Con Edison	Yes	☒	No ☐
CECONY	Yes	☒	No ☐



☒			Quarterly Report Pursuant To Section 13 or 15(d) of the Securities Exchange Act of 1934



☐			Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934



	Con Edison	CECONY
Weighted Average Remaining Lease Term:
Operating leases	18.9 years	14.3 years
Finance leases	11.2 years	2.3 years
Weighted Average Discount Rate:
Operating leases	4.3%	3.6%
Finance leases	3.8%	4.7%


	Con Edison				CECONY
(% of Pre-tax income)	2020		2019		2020		2019
STATUTORY TAX RATE
Federal	21	%	21	%	21	%	21	%
Changes in computed taxes resulting from:
State income tax	6		5		5		6
Amortization of excess deferred federal income taxes	(7)		(3)		(8)		(3)
Taxes attributable to non-controlling interest	(1)		(1)		0		0
Cost of removal	1		1		2		0
Other plant-related items	(1)		(1)		(1)		0
Renewable energy credits	(1)		(1)		0		0
Amortization of excess deferred state income taxes	0		(1)		0		(1)
Reserve for uncertain tax positions	0		1		0		0
Prior period federal income tax return adjustments	0		(2)		0		0
Other	1		0		0		(1)
Effective tax rate	19	%	19	%	19	%	22	%


	For the Three Months Ended September 30,											For the Three Months Ended September 30,
	Operating revenues		Inter-segment revenues				Depreciation and amortization		Operating income/(loss)			Operating revenues		Inter-segment revenues		Depreciation and amortization		Operating income/(loss)
(Millions of Dollars)	2019	2018	2019		2018		2019	2018	2019	2018	(Millions of Dollars)	2020	2019	2020	2019	2020	2019	2020	2019
CECONY											CECONY
Electric	$2,544	$2,571	$4				$266	$248	$803	$850	Electric	$2,562	$2,544	$4		$305	$266	$813	$803
Gas	275	264	2				58	52	(24)	(34)	Gas	259	275	2		74	58	(34)	(24)
Steam	58	64	18		19		22		(56)	(52)	Steam	51	58	18		22		(57)	(56)
Consolidation adjustments	—	—	(24)		(25)		—	—	—	—	Consolidation adjustments	—	—	(24)		—	—	—	—
Total CECONY	$2,877	$2,899		$—		$—	$346	$322	$723	$764	Total CECONY	$2,872	$2,877	$—	$—	$401	$346	$722	$723
O&R											O&R
Electric	$210	$212		$—		$—	$16	$14	$56	$52	Electric	$208	$210	$—	$—	$17	$16	$58	$56
Gas	31	34	—		—		6	5	(10)		Gas	30	31	—	—	6		(9)	(10)
Total O&R	$241	$246		$—		$—	$22	$19	$46	$42	Total O&R	$238	$241	$—	$—	$23	$22	$49	$46
Clean Energy Businesses	$247	$181		$—		$—	$53	$18	$100	$25	Clean Energy Businesses	$222	$247	$—	$—	$58	$53	$92	$100
Con Edison Transmission	1		—		—		—	—	(1)	(2)	Con Edison Transmission	1		—	—	0	0	(2)	(1)
Other (a)	(1)	1	—		—		—	1	(1)	(3)	Other (a)	0	(1)	—	—	0	0	(1)
Total Con Edison	$3,365	$3,328		$—		$—	$421	$360	$867	$826	Total Con Edison	$3,333	$3,365	$—	$—	$482	$421	$860	$867


~~(c)~~	Includes amounts for interest rate swaps of $(7) million in current liabilities and $(57) million in noncurrent liabilities. At September 30, 2019, the Clean Energy Businesses had interest rate swaps with notional amounts of $934 million. The expiration dates of the swaps range from 2024-2041.


	Electric Energy (MWh) (a)(b)	Capacity (MW) (a)	Natural Gas (Dt) (a)(b)	Refined Fuels (gallons)
Con Edison	30,693,295	41,993	304,371,409	8,736,000
CECONY	28,628,075	32,400	288,330,000	8,736,000


~~(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.~~


(Millions of Dollars)	Con Edison (a)		CECONY (a)
Aggregate fair value – net liabilities	$259		$241
Collateral posted	128		116
Additional collateral (b) (downgrade one level from current ratings)	46		39
Additional collateral (b) (downgrade to below investment grade from current ratings)	118	(c)	104	(c)


~~(c)~~	Derivative instruments that are net assets have been excluded from the table. At September 30, 2019, if Con Edison had been downgraded to below investment grade, it would have been required to post additional collateral for such derivative instruments of $26 million.


~~(a)~~	(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 no transfers between levels 1, 2, and 3 during the nine months ended September 30, 2019.~~


~~(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.~~


~~(a)~~	~~Generally, increases/(decreases) in this input in isolation would result in a higher/(lower) fair value measurement.~~


	Tax Equity Projects
	Great Valley Solar (c)(d)		Copper Mountain - Mesquite Solar (c)(e)
(Millions of Dollars)	2020	2019	2020	2019
Non-utility property, less accumulated depreciation (f)(g)	$286	$293	$449	$461
Other assets	41	40	181	128
Total assets (a)	$327	$333	$630	$589
Other liabilities	15	17	72	18
Total liabilities (b)	$15	$17	$72	$18


~~(a)~~	~~The assets of the Tax Equity Projects represent assets of a consolidated VIE that can be used only to settle obligations of the consolidated VIE.~~


~~(b)~~	~~The liabilities of the Tax Equity Projects represent liabilities of a consolidated VIE for which creditors do not have recourse to the general credit of the primary beneficiary.~~


~~(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 $57 million and $33 million at September 30, 2019 and December 31, 2018, respectively.


~~(e)~~	Copper Mountain - Mesquite Solar consists of the Copper Mountain Solar 4, Mesquite Solar 2 and Mesquite Solar 3 projects for which the noncontrolling interest of the tax equity investor was $115 million and $71 million at September 30, 2019 and December 31, 2018, respectively.


~~(f)~~	~~Noncontrolling interest of the third party was $7 million at December 31, 2018.~~


~~(g)~~	~~Non-utility property is reduced by accumulated depreciation of $7 million for Great Valley Solar and $10 million for Copper Mountain - Mesquite Solar at September 30, 2019.~~


~~(h)~~	Non-utility property is reduced by accumulated depreciation of $1 million for Great Valley Solar, $1 million for Copper Mountain - Mesquite Solar and $15 million for Texas Solar 4 at December 31, 2018.


	For the Three Months Ended September 30, 2020						For the Nine Months Ended September 30, 2020						At September 30, 2020
(Millions of Dollars, except percentages)	Operating Revenues			Net Income for Common Stock			Operating Revenues			Net Income for Common Stock			Assets
CECONY	$2,872	86	%	$405	82	%	$8,072	87	%	$963	91	%	$47,668	80	%
O&R	238	7		27	6		647	7		57	5		3,094	5
Total Utilities	3,110	93		432	88		8,719	94		1,020	96		50,762	85
Clean Energy Businesses (a)	222	7		56	11		566	6		8	1		6,766	11
Con Edison Transmission	1	—		15	3		3	—		42	4		1,652	3
Other (b)	—	—		(10)	(2)		(2)	—		(12)	(1)		415	1
Total Con Edison	$3,333	100	%	$493	100	%	$9,286	100	%	$1,058	100	%	$59,595	100	%



	For the Three Months Ended September 30, 2019						For the Nine Months Ended September 30, 2019						At September 30, 2019
(Millions of Dollars, except percentages)	Operating Revenues			Net Income for Common Stock			Operating Revenues			Net Income for Common Stock			Assets
CECONY	$2,877	86	%	$414	88	%	$8,248	86	%	$978	93	%	$44,808	80	%
O&R	241	7		25	5		678	7		60	6		2,935	5
Total Utilities	3,118	93		439	93		8,926	93		1,038	99		47,743	85
Clean Energy Businesses (a)	247	7		22	5		696	7		(19)	(2	)	6,376	12
Con Edison Transmission	1	—		14	2		3	—		38	4		1,559	3
Other (b)	(1)	—		(2)	—		(2)	—		(9)	(1	)	262	—
Total Con Edison	$3,365	100	%	$473	100	%	$9,623	100	%	$1,048	100	%	$55,940	100	%


~~(b)~~	~~Other includes parent company and consolidation adjustments.~~



(Millions of Dollars)	2020	2021	2022
Electric	$2,135	$2,137	$1,917
Gas	$1,073	$1,055	$989



	Common Equity Ratio (Percent of total capitalization)
	September 30, 2019	December 31, 2018
Con Edison	50.8	49.0
CECONY	50.1	48.6



Project Name	Generating Capacity (MW AC)	Power Purchase Agreement (PPA) Term (In Years) (a)	Actual/Expected In-Service Date (b)	Location (State)	PPA Counterparty (c)
Utility Scale
Solar
PJM assets	53	(d)	2011/2013	New Jersey/Pennsylvania	Various
New England assets	24	Various	2011/2017	Massachusetts/Rhode Island	Various
California Solar (e) (g)	110	25	2012/2013	California	PG&E
Mesquite Solar 1 (e) (g)	165	20	2013	Arizona	PG&E
Copper Mountain Solar 2 (e) (g)	150	25	2013/2015	Nevada	PG&E
Copper Mountain Solar 3 (e) (g)	255	20	2014/2015	Nevada	SCPPA
California Solar 2 (e)	80	20	2014/2016	California	SCE/PG&E
Texas Solar 4 (e)	40	25	2014	Texas	City of San Antonio
Texas Solar 5 (e)	95	25	2015	Texas	City of San Antonio
Texas Solar 7 (e)	106	25	2016	Texas	City of San Antonio
California Solar 3 (e)	110	20	2016/2017	California	SCE/PG&E
Upton Solar (e)	158	25	2017	Texas	City of Austin
Panoche Valley	140	20	2017/2018	California	SCE
Copper Mountain Solar 1 (e)	58	12	2018	Nevada	PG&E
Copper Mountain Solar 4 (f) (e)	94	20	2018	Nevada	SCE
Mesquite Solar 2 (f) (e)	100	18	2018	Arizona	SCE
Mesquite Solar 3 (f) (e)	150	23	2018	Arizona	WAPA (Navy)
Great Valley Solar (f) (e)	200	17	2018	California	MCE/SMUD/PG&E/SCE
Wistaria Solar	100	20	2018	California	SCE
Other	26	Various	Various	Various	Various
Total Solar	2,214
Wind
Broken Bow II (e)	75	25	2014	Nebraska	NPPD
Wind Holdings (e)	180	Various	Various	Various	NWE/Basin Electric
Adams Rose Wind	23	7	2016	Minnesota	Dairyland
Coram Wind (e)	102	16	2016	California	PG&E
Other	22	Various	Various	Various	Various
Total Wind	402
Total MW (AC) in Operation	2,616
Total MW (AC) in Construction	18
Total MW (AC) Utility Scale	2,634
Behind the Meter
Total MW (AC) in Operation	46
Total MW (AC) in Construction	8
Total MW Behind the Meter	54