x | 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 |
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 x | No ¨ |
Consolidated Edison Company of New York, Inc. (CECONY) | Yes x | No ¨ |
Con Edison | Yes x | No ¨ |
CECONY | Yes x | No ¨ |
Con Edison | |||
Large accelerated filer x | Accelerated filer ¨ | Non-accelerated filer ¨ | Smaller reporting company ¨ |
CECONY | |||
Large accelerated filer ¨ | Accelerated filer ¨ | Non-accelerated filer x | Smaller reporting company ¨ |
Con Edison | Yes ¨ | No x |
CECONY | Yes ¨ | No x |
Con Edison Companies | ||
Con Edison | Consolidated Edison, Inc. | |
CECONY | Consolidated Edison Company of New York, Inc. | |
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. | |
CET Electric | Consolidated Edison Transmission, LLC | |
CET Gas | Con Edison Gas Pipeline and Storage, LLC | |
O&R | Orange and Rockland Utilities, Inc. | |
Pike | Pike County Light & Power Company | |
RECO | Rockland Electric Company | |
The Companies | Con Edison and CECONY | |
The Utilities | CECONY and O&R | |
Regulatory Agencies, Government Agencies and Other Organizations | ||
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 | 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 | New York State Energy Research and Development Authority | |
NYSPSC | New York State Public Service Commission | |
NYSRC | New York State Reliability Council, LLC | |
PAPUC | Pennsylvania Public Utility Commission | |
PJM | PJM Interconnection LLC | |
SEC | U.S. Securities and Exchange Commission | |
Accounting | ||
ASU | Accounting Standards Update | |
GAAP | Generally Accepted Accounting Principles in the United States of America | |
OCI | Other Comprehensive Income | |
VIE | Variable interest entity |
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 | |
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 | ||
AFUDC | Allowance for funds used during construction | |
AMI | Advanced metering infrastructure | |
COSO | Committee of Sponsoring Organizations of the Treadway Commission | |
DER | Distributed energy resources | |
EGWP | Employer Group Waiver Plan | |
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, 2015 | |
LTIP | Long Term Incentive Plan | |
Moody’s | Moody’s Investors Service | |
REV | Reforming the Energy Vision | |
S&P | Standard & Poor’s Financial Services LLC | |
VaR | Value-at-Risk |
PAGE | ||
ITEM 1 | Financial Statements (Unaudited) | |
Con Edison | ||
CECONY | ||
ITEM 2 | ||
ITEM 3 | ||
ITEM 4 | ||
ITEM 1 | ||
ITEM 1A | ||
ITEM 6 | ||
• | 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 Companies are exposed to risks from the environmental consequences of their operations; |
• | a disruption in the wholesale energy markets or failure by an energy supplier 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; |
• | the Companies’ strategies may not be effective to address changes in the external business environment; and |
• | the Companies also face other risks that are beyond their control. |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||
2016 | 2015 | 2016 | 2015 | |||
(Millions of Dollars/ Except Share Data) | ||||||
OPERATING REVENUES | ||||||
Electric | $2,769 | $2,762 | $6,717 | $6,937 | ||
Gas | 235 | 237 | 1,246 | 1,293 | ||
Steam | 63 | 58 | 406 | 529 | ||
Non-utility | 350 | 386 | 999 | 1,088 | ||
TOTAL OPERATING REVENUES | 3,417 | 3,443 | 9,368 | 9,847 | ||
OPERATING EXPENSES | ||||||
Purchased power | 798 | 860 | 2,047 | 2,404 | ||
Fuel | 29 | 31 | 133 | 216 | ||
Gas purchased for resale | 81 | 64 | 320 | 415 | ||
Other operations and maintenance | 840 | 869 | 2,447 | 2,485 | ||
Depreciation and amortization | 305 | 285 | 905 | 840 | ||
Taxes, other than income taxes | 528 | 504 | 1,523 | 1,459 | ||
TOTAL OPERATING EXPENSES | 2,581 | 2,613 | 7,375 | 7,819 | ||
Gain on sale of retail electric supply business | 104 | — | 104 | — | ||
OPERATING INCOME | 940 | 830 | 2,097 | 2,028 | ||
OTHER INCOME (DEDUCTIONS) | ||||||
Investment and other income | 51 | 12 | 70 | 31 | ||
Allowance for equity funds used during construction | 3 | 1 | 7 | 3 | ||
Other deductions | (5) | (4) | (16) | (11) | ||
TOTAL OTHER INCOME | 49 | 9 | 61 | 23 | ||
INCOME BEFORE INTEREST AND INCOME TAX EXPENSE | 989 | 839 | 2,158 | 2,051 | ||
INTEREST EXPENSE | ||||||
Interest on long-term debt | 174 | 157 | 504 | 469 | ||
Other interest | 5 | 6 | 17 | 19 | ||
Allowance for borrowed funds used during construction | (1) | (1) | (4) | (2) | ||
NET INTEREST EXPENSE | 178 | 162 | 517 | 486 | ||
INCOME BEFORE INCOME TAX EXPENSE | 811 | 677 | 1,641 | 1,565 | ||
INCOME TAX EXPENSE | 314 | 249 | 602 | 548 | ||
NET INCOME | $497 | $428 | $1,039 | $1,017 | ||
Net income per common share—basic | $1.63 | $1.46 | $3.47 | $3.47 | ||
Net income per common share—diluted | $1.62 | $1.45 | $3.46 | $3.46 | ||
DIVIDENDS DECLARED PER COMMON SHARE | $0.67 | $0.65 | $2.01 | $1.95 | ||
AVERAGE NUMBER OF SHARES OUTSTANDING—BASIC (IN MILLIONS) | 304.5 | 292.9 | 299.1 | 292.9 | ||
AVERAGE NUMBER OF SHARES OUTSTANDING—DILUTED (IN MILLIONS) | 305.9 | 294.2 | 300.5 | 294.2 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||
2016 | 2015 | 2016 | 2015 | |
(Millions of Dollars) | ||||
NET INCOME | $497 | $428 | $1,039 | $1,017 |
OTHER COMPREHENSIVE INCOME, NET OF TAXES | ||||
Pension and other postretirement benefit plan liability adjustments, net of taxes | 1 | 1 | 2 | 7 |
TOTAL OTHER COMPREHENSIVE INCOME, NET OF TAXES | 1 | 1 | 2 | 7 |
COMPREHENSIVE INCOME | $498 | $429 | $1,041 | $1,024 |
For the Nine Months Ended September 30, | ||||
2016 | 2015 | |||
(Millions of Dollars) | ||||
OPERATING ACTIVITIES | ||||
Net income | $1,039 | $1,017 | ||
PRINCIPAL NON-CASH CHARGES/(CREDITS) TO INCOME | ||||
Depreciation and amortization | 905 | 840 | ||
Deferred income taxes | 524 | 466 | ||
Rate case amortization and accruals | (157) | (38) | ||
Common equity component of allowance for funds used during construction | (7) | (3) | ||
Net derivative (gains)/losses | (7) | (4) | ||
Pre-tax gain on sale of retail electric supply business | (104) | — | ||
Other non-cash items, net | 99 | 73 | ||
CHANGES IN ASSETS AND LIABILITIES | ||||
Accounts receivable – customers | (138) | (82) | ||
Materials and supplies, including fuel oil and gas in storage | 15 | 32 | ||
Other receivables and other current assets | 90 | 44 | ||
Income taxes receivable | 100 | 194 | ||
Prepayments | (403) | (568) | ||
Accounts payable | 142 | 83 | ||
Pensions and retiree benefits obligations, net | 464 | 566 | ||
Pensions and retiree benefits contributions | (510) | (753) | ||
Accrued taxes | (21) | (19) | ||
Accrued interest | 66 | 48 | ||
Superfund and environmental remediation costs, net | 68 | 23 | ||
Distributions from equity investments | 45 | 29 | ||
Deferred charges, noncurrent assets and other regulatory assets | (104) | (17) | ||
Deferred credits and other regulatory liabilities | 116 | 220 | ||
Other current and noncurrent liabilities | 114 | 48 | ||
NET CASH FLOWS FROM OPERATING ACTIVITIES | 2,336 | 2,199 | ||
INVESTING ACTIVITIES | ||||
Utility construction expenditures | (2,057) | (1,838) | ||
Cost of removal less salvage | (149) | (156) | ||
Non-utility construction expenditures | (436) | (366) | ||
Investments in/acquisitions of renewable electric production and electric and gas transmission projects | (1,281) | (286) | ||
Proceeds from sale of assets | 250 | — | ||
Proceeds from the transfer of assets to NY Transco | 122 | — | ||
Restricted cash | (21) | (23) | ||
Other investing activities | (145) | (18) | ||
NET CASH FLOWS USED IN INVESTING ACTIVITIES | (3,717) | (2,687) | ||
FINANCING ACTIVITIES | ||||
Net (payment)/issuance of short-term debt | (928) | 360 | ||
Issuance of long-term debt | 1,765 | 238 | ||
Retirement of long-term debt | (407) | (145) | ||
Debt issuance costs | (16) | (2) | ||
Common stock dividends | (570) | (560) | ||
Issuance of common shares - public offering | 702 | — | ||
Issuance of common shares for stock plans, net of repurchases | 38 | (9 | ) | |
Distribution to noncontrolling interest | (1) | — | ||
NET CASH FLOWS FROM/(USED IN) FINANCING ACTIVITIES | 583 | (118) | ||
CASH AND TEMPORARY CASH INVESTMENTS: | ||||
NET CHANGE FOR THE PERIOD | (798) | (606) | ||
BALANCE AT BEGINNING OF PERIOD | 944 | 699 | ||
BALANCE AT END OF PERIOD | 146 | 93 | ||
LESS: CHANGE IN CASH BALANCES HELD FOR SALE | (4 | ) | 2 | |
BALANCE AT END OF PERIOD EXCLUDING HELD FOR SALE | $150 | $91 | ||
SUPPLEMENTAL DISCLOSURE OF CASH INFORMATION | ||||
Cash paid/(received) during the period for: | ||||
Interest | $437 | $411 | ||
Income taxes | $(144) | $(7) | ||
SUPPLEMENTAL DISCLOSURE OF NON-CASH INFORMATION | ||||
Construction expenditures in accounts payable | $242 | $204 | ||
Issuance of common shares for dividend reinvestment | $35 | $11 |
September 30, 2016 | December 31, 2015 | ||
(Millions of Dollars) | |||
ASSETS | |||
CURRENT ASSETS | |||
Cash and temporary cash investments | $150 | $944 | |
Special deposits | 3 | 3 | |
Accounts receivable – customers, less allowance for uncollectible accounts of $75 and $85 in 2016 and 2015, respectively | 1,157 | 1,052 | |
Other receivables, less allowance for uncollectible accounts of $13 and $11 in 2016 and 2015, respectively | 165 | 304 | |
Income taxes receivable | 66 | 166 | |
Accrued unbilled revenue | 373 | 360 | |
Fuel oil, gas in storage, materials and supplies, at average cost | 335 | 350 | |
Prepayments | 580 | 177 | |
Regulatory assets | 119 | 132 | |
Assets held for sale | — | 157 | |
Other current assets | 206 | 191 | |
TOTAL CURRENT ASSETS | 3,154 | 3,836 | |
INVESTMENTS | 1,931 | 884 | |
UTILITY PLANT, AT ORIGINAL COST | |||
Electric | 27,239 | 26,358 | |
Gas | 7,253 | 6,858 | |
Steam | 2,374 | 2,336 | |
General | 2,657 | 2,622 | |
TOTAL | 39,523 | 38,174 | |
Less: Accumulated depreciation | 8,451 | 8,044 | |
Net | 31,072 | 30,130 | |
Construction work in progress | 1,286 | 1,003 | |
NET UTILITY PLANT | 32,358 | 31,133 | |
NON-UTILITY PLANT | |||
Non-utility property, less accumulated depreciation of $122 and $95 in 2016 and 2015, respectively | 1,127 | 832 | |
Construction work in progress | 421 | 244 | |
NET PLANT | 33,906 | 32,209 | |
OTHER NONCURRENT ASSETS | |||
Goodwill | 429 | 429 | |
Intangible assets, less accumulated amortization of $5 and $4 in 2016 and 2015, respectively | — | 2 | |
Regulatory assets | 7,544 | 8,096 | |
Other deferred charges and noncurrent assets | 352 | 186 | |
TOTAL OTHER NONCURRENT ASSETS | 8,325 | 8,713 | |
TOTAL ASSETS | $47,316 | $45,642 |
September 30, 2016 | December 31, 2015 | ||
(Millions of Dollars) | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||
CURRENT LIABILITIES | |||
Long-term debt due within one year | $346 | $739 | |
Notes payable | 601 | 1,529 | |
Accounts payable | 1,113 | 1,008 | |
Customer deposits | 356 | 354 | |
Accrued taxes | 41 | 62 | |
Accrued interest | 202 | 136 | |
Accrued wages | 101 | 97 | |
Fair value of derivative liabilities | 70 | 66 | |
Regulatory liabilities | 123 | 115 | |
Liabilities held for sale | — | 89 | |
Other current liabilities | 638 | 525 | |
TOTAL CURRENT LIABILITIES | 3,591 | 4,720 | |
NONCURRENT LIABILITIES | |||
Provision for injuries and damages | 170 | 185 | |
Pensions and retiree benefits | 2,197 | 2,911 | |
Superfund and other environmental costs | 752 | 765 | |
Asset retirement obligations | 254 | 242 | |
Fair value of derivative liabilities | 52 | 39 | |
Deferred income taxes and unamortized investment tax credits | 10,155 | 9,537 | |
Regulatory liabilities | 1,920 | 1,977 | |
Other deferred credits and noncurrent liabilities | 203 | 199 | |
TOTAL NONCURRENT LIABILITIES | 15,703 | 15,855 | |
LONG-TERM DEBT | 13,747 | 12,006 | |
EQUITY | |||
Common shareholders’ equity | 14,267 | 13,052 | |
Noncontrolling interest | 8 | 9 | |
TOTAL EQUITY (See Statement of Equity) | 14,275 | 13,061 | |
TOTAL LIABILITIES AND EQUITY | $47,316 | $45,642 |
(In Millions) | Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Capital Stock Expense | Accumulated Other Comprehensive Income/(Loss) | Noncontrolling Interest | Total | |||||||
Shares | Amount | Shares | Amount | ||||||||||||
BALANCE AS OF DECEMBER 31, 2014 | 293 | $32 | $4,991 | $8,691 | 23 | $(1,032) | $(61) | $(45) | $9 | $12,585 | |||||
Net income | 370 | 370 | |||||||||||||
Common stock dividends | (190) | (190) | |||||||||||||
Issuance of common shares for stock plans, net of repurchases | — | 2 | — | (2) | — | ||||||||||
Other comprehensive income | 5 | 5 | |||||||||||||
BALANCE AS OF MARCH 31, 2015 | 293 | $32 | $4,993 | $8,871 | 23 | $(1,034) | $(61) | $(40) | $9 | $12,770 | |||||
Net income | 219 | 219 | |||||||||||||
Common stock dividends | (190) | (190) | |||||||||||||
Issuance of common shares for stock plans, net of repurchases | — | — | — | (3) | (3) | ||||||||||
Other comprehensive income | 1 | 1 | |||||||||||||
BALANCE AS OF JUNE 30, 2015 | 293 | $32 | $4,993 | $8,900 | 23 | $(1,037) | $(61) | $(39) | $9 | $12,797 | |||||
Net income | 428 | 428 | |||||||||||||
Common stock dividends | (191) | (191) | |||||||||||||
Issuance of common shares for stock plans, net of repurchases | — | 15 | — | (1) | 14 | ||||||||||
Other comprehensive income | 1 | 1 | |||||||||||||
BALANCE AS OF SEPTEMBER 30, 2015 | 293 | $32 | $5,008 | $9,137 | 23 | $(1,038) | $(61) | $(38) | $9 | $13,049 | |||||
BALANCE AS OF DECEMBER 31, 2015 | 293 | $32 | $5,030 | $9,123 | 23 | $(1,038) | $(61) | $(34) | $9 | $13,061 | |||||
Net income | 310 | 310 | |||||||||||||
Common stock dividends | (197) | (197) | |||||||||||||
Issuance of common shares for stock plans | 1 | 28 | 28 | ||||||||||||
Other comprehensive income | — | — | |||||||||||||
Noncontrolling interest | (1) | (1) | |||||||||||||
BALANCE AS OF MARCH 31, 2016 | 294 | $32 | $5,058 | $9,236 | 23 | $(1,038) | $(61) | $(34) | $8 | $13,201 | |||||
Net income | 232 | 232 | |||||||||||||
Common stock dividends | (204) | (204) | |||||||||||||
Issuance of common shares - public offering | 10 | 1 | 723 | (22) | 702 | ||||||||||
Issuance of common shares for stock plans | — | 26 | 26 | ||||||||||||
Other comprehensive income | 1 | 1 | |||||||||||||
BALANCE AS OF JUNE 30, 2016 | 304 | $33 | $5,807 | $9,264 | 23 | $(1,038) | $(83) | $(33) | $8 | $13,958 | |||||
Net income | 497 | 497 | |||||||||||||
Common stock dividends | (204) | (204) | |||||||||||||
Issuance of common shares for stock plans | 1 | 23 | 23 | ||||||||||||
Other comprehensive income | 1 | 1 | |||||||||||||
BALANCE AS OF SEPTEMBER 30, 2016 | 305 | $33 | $5,830 | $9,557 | 23 | $(1,038) | $(83) | $(32) | $8 | $14,275 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||
2016 | 2015 | 2016 | 2015 | |
(Millions of Dollars) | ||||
OPERATING REVENUES | ||||
Electric | $2,557 | $2,558 | $6,222 | $6,416 |
Gas | 208 | 213 | 1,113 | 1,177 |
Steam | 63 | 58 | 406 | 529 |
TOTAL OPERATING REVENUES | 2,828 | 2,829 | 7,741 | 8,122 |
OPERATING EXPENSES | ||||
Purchased power | 495 | 526 | 1,216 | 1,423 |
Fuel | 29 | 31 | 133 | 216 |
Gas purchased for resale | 34 | 30 | 217 | 282 |
Other operations and maintenance | 724 | 750 | 2,105 | 2,140 |
Depreciation and amortization | 278 | 262 | 825 | 773 |
Taxes, other than income taxes | 502 | 485 | 1,446 | 1,399 |
TOTAL OPERATING EXPENSES | 2,062 | 2,084 | 5,942 | 6,233 |
OPERATING INCOME | 766 | 745 | 1,799 | 1,889 |
OTHER INCOME (DEDUCTIONS) | ||||
Investment and other income | 4 | (1) | 6 | 3 |
Allowance for equity funds used during construction | 2 | 1 | 6 | 3 |
Other deductions | (4) | (3) | (10) | (10) |
TOTAL OTHER INCOME (DEDUCTIONS) | 2 | (3) | 2 | (4) |
INCOME BEFORE INTEREST AND INCOME TAX EXPENSE | 768 | 742 | 1,801 | 1,885 |
INTEREST EXPENSE | ||||
Interest on long-term debt | 150 | 141 | 440 | 423 |
Other interest | 5 | 5 | 14 | 14 |
Allowance for borrowed funds used during construction | (1) | (1) | (3) | (2) |
NET INTEREST EXPENSE | 154 | 145 | 451 | 435 |
INCOME BEFORE INCOME TAX EXPENSE | 614 | 597 | 1,350 | 1,450 |
INCOME TAX EXPENSE | 226 | 222 | 491 | 515 |
NET INCOME | $388 | $375 | $859 | $935 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||
2016 | 2015 | 2016 | 2015 | ||
(Millions of Dollars) | |||||
NET INCOME | $388 | $375 | $859 | $935 | |
OTHER COMPREHENSIVE INCOME, NET OF TAXES | |||||
Pension and other postretirement benefit plan liability adjustments, net of taxes | — | 1 | 1 | 2 | |
TOTAL OTHER COMPREHENSIVE INCOME, NET OF TAXES | — | 1 | 1 | 2 | |
COMPREHENSIVE INCOME | $388 | $376 | $860 | $937 |
For the Nine Months Ended September 30, | |||
2016 | 2015 | ||
(Millions of Dollars) | |||
OPERATING ACTIVITIES | |||
Net income | $859 | $935 | |
PRINCIPAL NON-CASH CHARGES/(CREDITS) TO INCOME | |||
Depreciation and amortization | 825 | 773 | |
Deferred income taxes | 569 | 391 | |
Rate case amortization and accruals | (170) | (57) | |
Common equity component of allowance for funds used during construction | (6) | (3) | |
Other non-cash items, net | 7 | 13 | |
CHANGES IN ASSETS AND LIABILITIES | |||
Accounts receivable – customers | (79) | (51) | |
Materials and supplies, including fuel oil and gas in storage | 15 | 34 | |
Other receivables and other current assets | 18 | 60 | |
Accounts receivable from affiliated companies | 38 | (32) | |
Prepayments | (351) | (336) | |
Accounts payable | 82 | 18 | |
Accounts payable to affiliated companies | 8 | 5 | |
Pensions and retiree benefits obligations, net | 439 | 530 | |
Pensions and retiree benefits contributions | (472) | (700) | |
Superfund and environmental remediation costs, net | 76 | 21 | |
Accrued taxes | (17) | (1) | |
Accrued taxes to affiliated companies | (2) | (8) | |
Accrued interest | 43 | 37 | |
Deferred charges, noncurrent assets and other regulatory assets | (153) | (49) | |
Deferred credits and other regulatory liabilities | 165 | 222 | |
Other current and noncurrent liabilities | 123 | — | |
NET CASH FLOWS FROM OPERATING ACTIVITIES | 2,017 | 1,802 | |
INVESTING ACTIVITIES | |||
Utility construction expenditures | (1,932) | (1,732) | |
Cost of removal less salvage | (146) | (149) | |
Proceeds from the transfer of assets to NY Transco | 122 | — | |
Restricted cash | 13 | (19) | |
NET CASH FLOWS USED IN INVESTING ACTIVITIES | (1,943) | (1,900) | |
FINANCING ACTIVITIES | |||
Net (payment)/issuance of short-term debt | (553) | 199 | |
Issuance of long-term debt | 550 | — | |
Retirement of long-term debt | (400) | — | |
Debt issuance costs | (6) | (1) | |
Capital contribution by parent | 76 | — | |
Dividend to parent | (558) | (694) | |
NET CASH FLOWS USED IN FINANCING ACTIVITIES | (891) | (496) | |
CASH AND TEMPORARY CASH INVESTMENTS: | |||
NET CHANGE FOR THE PERIOD | (817) | (594) | |
BALANCE AT BEGINNING OF PERIOD | 843 | 645 | |
BALANCE AT END OF PERIOD | $26 | $51 | |
SUPPLEMENTAL DISCLOSURE OF CASH INFORMATION | |||
Cash paid/(received) during the period for: | |||
Interest | $386 | $376 | |
Income taxes | $(130) | $143 | |
SUPPLEMENTAL DISCLOSURE OF NON-CASH INFORMATION | |||
Construction expenditures in accounts payable | $195 | $152 |
September 30, 2016 | December 31, 2015 | |
(Millions of Dollars) | ||
ASSETS | ||
CURRENT ASSETS | ||
Cash and temporary cash investments | $26 | $843 |
Special deposits | 2 | 2 |
Accounts receivable – customers, less allowance for uncollectible accounts of $70 and $80 in 2016 and 2015, respectively | 1,076 | 987 |
Other receivables, less allowance for uncollectible accounts of $12 and $11 in 2016 and 2015, respectively | 55 | 70 |
Accrued unbilled revenue | 330 | 327 |
Accounts receivable from affiliated companies | 152 | 190 |
Fuel oil, gas in storage, materials and supplies, at average cost | 273 | 288 |
Prepayments | 464 | 113 |
Regulatory assets | 111 | 121 |
Other current assets | 98 | 131 |
TOTAL CURRENT ASSETS | 2,587 | 3,072 |
INVESTMENTS | 318 | 286 |
UTILITY PLANT, AT ORIGINAL COST | ||
Electric | 25,648 | 24,828 |
Gas | 6,564 | 6,191 |
Steam | 2,374 | 2,336 |
General | 2,437 | 2,411 |
TOTAL | 37,023 | 35,766 |
Less: Accumulated depreciation | 7,750 | 7,378 |
Net | 29,273 | 28,388 |
Construction work in progress | 1,200 | 922 |
NET UTILITY PLANT | 30,473 | 29,310 |
NON-UTILITY PROPERTY | ||
Non-utility property, less accumulated depreciation of $25 in 2016 and 2015 | 4 | 5 |
NET PLANT | 30,477 | 29,315 |
OTHER NONCURRENT ASSETS | ||
Regulatory assets | 6,986 | 7,482 |
Other deferred charges and noncurrent assets | 68 | 75 |
TOTAL OTHER NONCURRENT ASSETS | 7,054 | 7,557 |
TOTAL ASSETS | $40,436 | $40,230 |
September 30, 2016 | December 31, 2015 | ||
(Millions of Dollars) | |||
LIABILITIES AND SHAREHOLDER’S EQUITY | |||
CURRENT LIABILITIES | |||
Long-term debt due within one year | $250 | $650 | |
Notes payable | 480 | 1,033 | |
Accounts payable | 838 | 771 | |
Accounts payable to affiliated companies | 20 | 12 | |
Customer deposits | 341 | 339 | |
Accrued taxes | 32 | 49 | |
Accrued taxes to affiliated companies | — | 2 | |
Accrued interest | 161 | 118 | |
Accrued wages | 92 | 88 | |
Fair value of derivative liabilities | 61 | 50 | |
Regulatory liabilities | 96 | 84 | |
Other current liabilities | 558 | 443 | |
TOTAL CURRENT LIABILITIES | 2,929 | 3,639 | |
NONCURRENT LIABILITIES | |||
Provision for injuries and damages | 164 | 178 | |
Pensions and retiree benefits | 1,895 | 2,565 | |
Superfund and other environmental costs | 661 | 665 | |
Asset retirement obligations | 241 | 234 | |
Fair value of derivative liabilities | 45 | 36 | |
Deferred income taxes and unamortized investment tax credits | 9,472 | 8,755 | |
Regulatory liabilities | 1,725 | 1,789 | |
Other deferred credits and noncurrent liabilities | 177 | 167 | |
TOTAL NONCURRENT LIABILITIES | 14,380 | 14,389 | |
LONG-TERM DEBT | 11,334 | 10,787 | |
SHAREHOLDER’S EQUITY (See Statement of Shareholder’s Equity) | 11,793 | 11,415 | |
TOTAL LIABILITIES AND SHAREHOLDER’S EQUITY | $40,436 | $40,230 |
Common Stock | Additional Paid-In Capital | Retained Earnings | Repurchased Con Edison Stock | Capital Stock Expense | Accumulated Other Comprehensive Income/(Loss) | Total | ||||
(In Millions) | Shares | Amount | ||||||||
BALANCE AS OF DECEMBER 31, 2014 | 235 | $589 | $4,234 | $7,399 | $(962) | $(61) | $(11) | $11,188 | ||
Net income | 348 | 348 | ||||||||
Common stock dividend to parent | (338) | (338) | ||||||||
Other comprehensive income | — | — | ||||||||
BALANCE AS OF MARCH 31, 2015 | 235 | $589 | $4,234 | $7,409 | $(962) | $(61) | $(11) | $11,198 | ||
Net income | 211 | 211 | ||||||||
Common stock dividend to parent | (178) | (178) | ||||||||
Other comprehensive income | 1 | 1 | ||||||||
BALANCE AS OF JUNE 30, 2015 | 235 | $589 | $4,234 | $7,442 | $(962) | $(61) | $(10) | $11,232 | ||
Net income | 375 | 375 | ||||||||
Common stock dividend to parent | (178) | (178) | ||||||||
Other comprehensive income | 1 | 1 | ||||||||
BALANCE AS OF SEPTEMBER 30, 2015 | 235 | $589 | $4,234 | $7,639 | $(962) | $(61) | $(9) | $11,430 | ||
BALANCE AS OF DECEMBER 31, 2015 | 235 | $589 | $4,247 | $7,611 | $(962) | $(61) | $(9) | $11,415 | ||
Net income | 310 | 310 | ||||||||
Common stock dividend to parent | (186) | (186) | ||||||||
Capital contribution by parent | 23 | 23 | ||||||||
Other comprehensive income | — | — | ||||||||
BALANCE AS OF MARCH 31, 2016 | 235 | $589 | $4,270 | $7,735 | $(962) | $(61) | $(9) | $11,562 | ||
Net income | 161 | 161 | ||||||||
Common stock dividend to parent | (186) | (186) | ||||||||
Capital contribution by parent | 28 | 28 | ||||||||
Other comprehensive income | 1 | 1 | ||||||||
BALANCE AS OF JUNE 30, 2016 | 235 | $589 | $4,298 | $7,710 | $(962) | $(61) | $(8) | $11,566 | ||
Net income | 388 | 388 | ||||||||
Common stock dividend to parent | (186) | (186) | ||||||||
Capital contribution by parent | 25 | 25 | ||||||||
Other comprehensive income | — | — | ||||||||
BALANCE AS OF SEPTEMBER 30, 2016 | 235 | $589 | $4,323 | $7,912 | $(962) | $(61) | $(8) | $11,793 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||
(Millions of Dollars, except per share amounts/Shares in Millions) | 2016 | 2015 | 2016 | 2015 |
Net income | $497 | $428 | $1,039 | $1,017 |
Weighted average common shares outstanding – basic | 304.5 | 292.9 | 299.1 | 292.9 |
Add: Incremental shares attributable to effect of potentially dilutive securities | 1.4 | 1.3 | 1.4 | 1.3 |
Adjusted weighted average common shares outstanding – diluted | 305.9 | 294.2 | 300.5 | 294.2 |
Net income per common share – basic | $1.63 | $1.46 | $3.47 | $3.47 |
Net income per common share – diluted | $1.62 | $1.45 | $3.46 | $3.46 |
For the Three Months Ended September 30, | |||||
Con Edison | CECONY | ||||
(Millions of Dollars) | 2016 | 2015 | 2016 | 2015 | |
Beginning balance, accumulated OCI, net of taxes (a) | $(33) | $(39) | $(8) | $(10) | |
Amounts reclassified from accumulated OCI related to pension plan liabilities, net of tax of $(1) for Con Edison in 2016 and 2015 (a)(b) | 1 | 1 | — | 1 | |
Current period OCI, net of taxes | 1 | 1 | — | 1 | |
Ending balance, accumulated OCI, net of taxes | $(32) | $(38) | $(8) | $(9) |
For the Nine Months Ended September 30, | ||||||
Con Edison | CECONY | |||||
(Millions of Dollars) | 2016 | 2015 | 2016 | 2015 | ||
Beginning balance, accumulated OCI, net of taxes (a) | $(34) | $(45) | $(9) | $(11) | ||
OCI before reclassifications, net of tax of $1 and $(2) for Con Edison in 2016 and 2015, respectively | (1) | 3 | — | — | ||
Amounts reclassified from accumulated OCI related to pension plan liabilities, net of tax of $(2) and $(3) for Con Edison in 2016 and 2015 (a)(b) | 3 | 4 | 1 | 2 | ||
Current period OCI, net of taxes | 2 | 7 | 1 | 2 | ||
Ending balance, accumulated OCI, net of taxes | $(32) | $(38) | $(8) | $(9) |
(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. |
Effective period | January 2017 - December 2019 | |
Base rate changes (a) | Yr. 1 - $195 million Yr. 2 - $155 million Yr. 3 - $155 million | |
Amortizations to income of net regulatory (assets) liabilities | Yr. 1 - $84 million Yr. 2 - $83 million Yr. 3 - $69 million | |
Other revenue sources | Retention of $75 million of annual transmission congestion revenues. Potential earnings adjustment mechanism incentives for energy efficiency and other potential incentives of up to: Yr. 1 - $28 million; Yr. 2 - $47 million; and Yr. 3 - $64 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 penalties if certain performance targets relating to service, reliability, safety and other matters are not met: Yr. 1 - $376 million; Yr. 2 - $383 million; and Yr. 3 - $395 million. | |
Cost reconciliations | Continuation of reconciliation of expenses for pension and other postretirement benefits, variable-rate tax-exempt debt, major storms, property taxes(b), municipal infrastructure support costs(c), the impact of new laws and environmental site investigation and remediation to amounts reflected in rates.(d) | |
Net utility plant reconciliations | Target levels reflected in rates: Electric average net plant target excluding advanced metering infrastructure (AMI): Yr. 1 - $21,689 million; Yr. 2 - $22,338 million; Yr. 3 - $23,002 million AMI: Yr. 1 - $126 million; Yr. 2 - $257 million; Yr. 3 - $415 million | |
Average rate base | Yr. 1 - $18,902 million Yr. 2 - $19,530 million Yr. 3 - $20,277 million | |
Weighted average cost of capital (after-tax) | Yr. 1 - 6.82 percent Yr. 2 - 6.80 percent Yr. 3 - 6.73 percent | |
Authorized return on common equity | 9.00 percent | |
Earnings sharing | Most earnings above an annual earnings threshold of 9.5 percent are to be applied to reduce regulatory assets for environmental remediation and other costs accumulated in the rate year. | |
Cost of long-term debt | Yr. 1 - 4.93 percent Yr. 2 - 4.88 percent Yr. 3 - 4.74 percent | |
Common equity ratio | 48 percent |
(a) | The electric base rate increases shown above are in addition to a $48 million increase resulting from the December 2016 expiration of a temporary credit under the current rate plan. At the NYSPSC’s option, these increases may be implemented with increases of $199 million in each rate year. |
(b) | 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. |
(c) | In general, if actual expenses for municipal infrastructure support (other than company labor) are below the amounts reflected in rates the company will defer the difference for credit to customers, and if the actual expenses are above the amount reflected in rates the company will defer for recovery from customers 80 percent of the difference subject to a maximum deferral of 30 percent of the amount reflected in rates. |
(d) | In addition, amounts reflected in rates relating to the regulatory asset for future income tax and the excess deferred federal income tax liability are subject to reconciliation. The NYSPSC staff is to audit the regulatory asset and the tax liability. Differences resulting from the NYSPSC staff review will be deferred for NYSPSC determination of any amounts to be refunded or collected from customers. |
Effective period | January 2017 - December 2019 | |
Base rate changes | Yr. 1 - $(5) million(a) Yr. 2 - $92 million Yr. 3 - $90 million | |
Amortizations to income of net regulatory (assets) liabilities | Yr. 1 - $39 million Yr. 2 - $37 million Yr. 3 - $36 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 incentives if performance targets related to gas leak backlog, leak prone pipe and service terminations are met: Yr. 1 - $7 million; Yr. 2 - $8 million; and Yr. 3 - $8 million. | |
Revenue decoupling mechanism | Continuation of reconciliation of actual to authorized gas delivery revenues. | |
Recoverable energy costs | Continuation of current rate recovery of purchased gas costs. | |
Negative revenue adjustments | Potential penalties if performance targets relating to service, safety and other matters are not met: Yr. 1 - $68 million; Yr. 2 - $75 million; and Yr. 3 - $83 million. | |
Cost reconciliations | Continuation of reconciliation of expenses for pension and other postretirement benefits, variable-rate tax-exempt debt, major storms, property taxes, municipal infrastructure support costs, the impact of new laws and environmental site investigation and remediation to amounts reflected in rates.(b) | |
Net utility plant reconciliations | Target levels reflected in rates: Gas average net plant target excluding AMI: Yr. 1 - $5,844 million; Yr. 2 - $6,512 million; Yr. 3 - $7,177 million AMI: Yr. 1 - $27 million; Yr. 2 - $57 million; Yr. 3 - $100 million | |
Average rate base | Yr. 1 - $4,841 million Yr. 2 - $5,395 million Yr. 3 - $6,005 million | |
Weighted average cost of capital (after-tax) | Yr. 1 - 6.82 percent Yr. 2 - 6.80 percent Yr. 3 - 6.73 percent | |
Authorized return on common equity | 9.00 percent | |
Earnings sharing | Most earnings above an annual earnings threshold of 9.5 percent are to be applied to reduce regulatory assets for environmental remediation and other costs accumulated in the rate year. | |
Cost of long-term debt | Yr. 1 - 4.93 percent Yr. 2 - 4.88 percent Yr. 3 - 4.74 percent | |
Common equity ratio | 48 percent |
(a) | The base rate decrease is offset by a $41 million increase resulting from the December 2016 expiration of a temporary credit under the current rate plan. |
(b) | See footnotes (b), (c) and (d) to the table under “CECONY-Electric,” above. |
Con Edison | CECONY | ||||||
(Millions of Dollars) | 2016 | 2015 | 2016 | 2015 | |||
Regulatory assets | |||||||
Unrecognized pension and other postretirement costs | $3,369 | $3,876 | $3,220 | $3,697 | |||
Future income tax | 2,429 | 2,350 | 2,312 | 2,232 | |||
Environmental remediation costs | 823 | 904 | 720 | 800 | |||
Revenue taxes | 298 | 253 | 283 | 240 | |||
Deferred storm costs | 89 | 185 | 30 | 110 | |||
Deferred derivative losses | 55 | 50 | 49 | 46 | |||
Unamortized loss on reacquired debt | 45 | 50 | 43 | 48 | |||
Surcharge for New York State assessment | 43 | 44 | 40 | 40 | |||
O&R property tax reconciliation | 39 | 46 | — | — | |||
Pension and other postretirement benefits deferrals | 34 | 45 | 3 | 16 | |||
Net electric deferrals | 29 | 44 | 29 | 44 | |||
Preferred stock redemption | 25 | 26 | 25 | 26 | |||
O&R transition bond charges | 16 | 21 | — | — | |||
Workers’ compensation | 15 | 11 | 15 | 11 | |||
Recoverable energy costs | 7 | 16 | 5 | 15 | |||
Other | 228 | 175 | 212 | 157 | |||
Regulatory assets – noncurrent | 7,544 | 8,096 | 6,986 | 7,482 | |||
Deferred derivative losses | 94 | 113 | 87 | 103 | |||
Recoverable energy costs | 25 | 19 | 24 | 18 | |||
Regulatory assets – current | 119 | 132 | 111 | 121 | |||
Total Regulatory Assets | $7,663 | $8,228 | $7,097 | $7,603 | |||
Regulatory liabilities | |||||||
Allowance for cost of removal less salvage | $713 | $676 | $602 | $570 | |||
Property tax reconciliation | 205 | 303 | 205 | 303 | |||
Pension and other postretirement benefit deferrals | 163 | 76 | 130 | 46 | |||
Net unbilled revenue deferrals | 121 | 109 | 121 | 109 | |||
Prudence proceeding | 96 | 99 | 96 | 99 | |||
Unrecognized other postretirement costs | 91 | 28 | 91 | 28 | |||
New York State income tax rate change | 66 | 75 | 64 | 72 | |||
Base rate change deferrals | 62 | 128 | 62 | 128 | |||
Variable-rate tax-exempt debt – cost rate reconciliation | 60 | 70 | 52 | 60 | |||
Carrying charges on repair allowance and bonus depreciation | 57 | 49 | 56 | 48 | |||
Earnings sharing - electric, gas and steam | 34 | 80 | 26 | 80 | |||
Net utility plant reconciliations | 27 | 32 | 27 | 31 | |||
Property tax refunds | 12 | 44 | 12 | 44 | |||
World Trade Center settlement proceeds | 5 | 21 | 5 | 21 | |||
Other | 208 | 187 | 176 | 150 | |||
Regulatory liabilities – noncurrent | 1,920 | 1,977 | 1,725 | 1,789 | |||
Revenue decoupling mechanism | 74 | 45 | 70 | 45 | |||
Refundable energy costs | 37 | 64 | 18 | 33 | |||
Deferred derivative gains | 12 | 6 | 8 | 6 | |||
Regulatory liabilities – current | 123 | 115 | 96 | 84 | |||
Total Regulatory Liabilities | $2,043 | $2,092 | $1,821 | $1,873 |
(Millions of Dollars) | 2016 | 2015 | ||
Long-Term Debt (including current portion) | Carrying Amount | Fair Value | Carrying Amount | Fair Value |
Con Edison | $14,093 | $16,325 | $12,745 | $13,856 |
CECONY | $11,584 | $13,564 | $11,437 | $12,427 |
For the Three Months Ended September 30, | |||||||
Con Edison | CECONY | ||||||
(Millions of Dollars) | 2016 | 2015 | 2016 | 2015 | |||
Service cost – including administrative expenses | $69 | $74 | $65 | $70 | |||
Interest cost on projected benefit obligation | 149 | 144 | 140 | 135 | |||
Expected return on plan assets | (237) | (222) | (225) | (210) | |||
Recognition of net actuarial loss | 149 | 194 | 141 | 183 | |||
Recognition of prior service costs | 1 | 1 | — | — | |||
NET PERIODIC BENEFIT COST | $131 | $191 | $121 | $178 | |||
Amortization of regulatory asset | — | 1 | — | 1 | |||
TOTAL PERIODIC BENEFIT COST | $131 | $192 | $121 | $179 | |||
Cost capitalized | (51) | (80) | (49) | (76) | |||
Reconciliation to rate level | 10 | (14) | 13 | (14) | |||
Cost charged to operating expenses | $90 | $98 | $85 | $89 |
For the Nine Months Ended September 30, | ||||||
Con Edison | CECONY | |||||
(Millions of Dollars) | 2016 | 2015 | 2016 | 2015 | ||
Service cost – including administrative expenses | $207 | $223 | $194 | $209 | ||
Interest cost on projected benefit obligation | 447 | 431 | 419 | 404 | ||
Expected return on plan assets | (711) | (664) | (674) | (630) | ||
Recognition of net actuarial loss | 447 | 581 | 424 | 550 | ||
Recognition of prior service costs | 3 | 3 | 1 | 1 | ||
NET PERIODIC BENEFIT COST | $393 | $574 | $364 | $534 | ||
Amortization of regulatory asset | — | 2 | — | 2 | ||
TOTAL PERIODIC BENEFIT COST | $393 | $576 | $364 | $536 | ||
Cost capitalized | (157) | (224) | (148) | (214) | ||
Reconciliation to rate level | 35 | (56) | 39 | (56) | ||
Cost charged to operating expenses | $271 | $296 | $255 | $266 |
For the Three Months Ended September 30, | ||||
Con Edison | CECONY | |||
(Millions of Dollars) | 2016 | 2015 | 2016 | 2015 |
Service cost | $4 | $5 | $3 | $4 |
Interest cost on accumulated other postretirement benefit obligation | 12 | 13 | 10 | 11 |
Expected return on plan assets | (19) | (20) | (17) | (17) |
Recognition of net actuarial loss | 1 | 8 | 1 | 7 |
Recognition of prior service cost | (5) | (5) | (3) | (4) |
TOTAL PERIODIC OTHER POSTRETIREMENT BENEFIT COST | $(7) | $1 | $(6) | $1 |
Cost capitalized | 2 | (1) | 2 | (1) |
Reconciliation to rate level | 7 | 4 | 6 | 2 |
Cost charged to operating expenses | $2 | $4 | $2 | $2 |
For the Nine Months Ended September 30, | ||||
Con Edison | CECONY | |||
(Millions of Dollars) | 2016 | 2015 | 2016 | 2015 |
Service cost | $13 | $15 | $10 | $11 |
Interest cost on accumulated other postretirement benefit obligation | 36 | 38 | 30 | 32 |
Expected return on plan assets | (58) | (59) | (50) | (51) |
Recognition of net actuarial loss | 4 | 24 | 2 | 21 |
Recognition of prior service cost | (15) | (15) | (11) | (10) |
TOTAL PERIODIC OTHER POSTRETIREMENT BENEFIT COST | $(20) | $3 | $(19) | $3 |
Cost capitalized | 5 | (2) | 5 | (2) |
Reconciliation to rate level | 20 | 12 | 19 | 5 |
Cost charged to operating expenses | $5 | $13 | $5 | $6 |
Con Edison | CECONY | |||
(Millions of Dollars) | 2016 | 2015 | 2016 | 2015 |
Accrued Liabilities: | ||||
Manufactured gas plant sites | $664 | $679 | $574 | $579 |
Other Superfund Sites | 88 | 86 | 87 | 86 |
Total | $752 | $765 | $661 | $665 |
Regulatory assets | $823 | $904 | $720 | $800 |
For the Three Months Ended September 30, | ||||
Con Edison | CECONY | |||
(Millions of Dollars) | 2016 | 2015 | 2016 | 2015 |
Remediation costs incurred | $8 | $6 | $5 | $6 |
For the Nine Months Ended September 30, | ||||
Con Edison | CECONY | |||
(Millions of Dollars) | 2016 | 2015 | 2016 | 2015 |
Remediation costs incurred | $20 | $21 | $10 | $18 |
Con Edison | CECONY | |||
(Millions of Dollars) | 2016 | 2015 | 2016 | 2015 |
Accrued liability – asbestos suits | $8 | $8 | $7 | $7 |
Regulatory assets – asbestos suits | $8 | $8 | $7 | $7 |
Accrued liability – workers’ compensation | $90 | $86 | $85 | $81 |
Regulatory assets – workers’ compensation | $15 | $11 | $15 | $11 |
Guarantee Type | 0 – 3 years | 4 – 10 years | > 10 years | Total | |||
(Millions of Dollars) | |||||||
Con Edison Transmission | $618 | $430 | $— | $1,048 | |||
Energy transactions | 635 | 57 | 91 | 783 | |||
Renewable electric production projects | 445 | — | 18 | 463 | |||
Other | 128 | — | — | 128 | |||
Total | $1,826 | $487 | $109 | $2,422 |
As of and for the Three Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||
Operating revenues | Inter-segment revenues | Depreciation and amortization | Operating income | Other income (deductions) | Interest charges | Income taxes on operating income | Total assets | Construction expenditures | ||||||||||||||||||||||||||||||
(Millions of Dollars) | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||||
CECONY | ||||||||||||||||||||||||||||||||||||||
Electric | $2,557 | $2,558 | $5 | $4 | $217 | $207 | $841 | $811 | $2 | $(2) | $117 | $111 | $275 | $260 | $30,580 | $30,369 | $411 | $419 | ||||||||||||||||||||
Gas | 208 | 213 | 1 | 1 | 41 | 35 | (28) | (17) | — | (1) | 27 | 24 | (24) | (17) | 7,300 | 6,687 | 224 | 178 | ||||||||||||||||||||
Steam | 63 | 58 | 22 | 22 | 20 | 20 | (47) | (49) | — | — | 10 | 10 | (17) | (18) | 2,556 | 2,614 | 24 | 27 | ||||||||||||||||||||
Consolidation adjustments | — | — | (28) | (27) | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Total CECONY | $2,828 | $2,829 | $— | $— | $278 | $262 | $766 | $745 | $2 | $(3) | $154 | $145 | $234 | $225 | $40,436 | $39,670 | $659 | $624 | ||||||||||||||||||||
O&R | ||||||||||||||||||||||||||||||||||||||
Electric | $213 | $205 | $— | $— | $12 | $13 | $55 | $51 | $1 | $(4) | $6 | $6 | $20 | $17 | $1,985 | $1,959 | $24 | $26 | ||||||||||||||||||||
Gas | 27 | 24 | — | — | 5 | 4 | (7) | (9) | — | (1) | 3 | 3 | (4) | (5) | 799 | 754 | 14 | 12 | ||||||||||||||||||||
Total O&R | $240 | $229 | $— | $— | $17 | $17 | $48 | $42 | $1 | $(5) | $9 | $9 | $16 | $12 | $2,784 | $2,713 | $38 | $38 | ||||||||||||||||||||
Competitive energy businesses | $350 | $386 | $(2) | $(2) | $11 | $6 | $125 | $43 | $27 | $17 | $7 | $2 | $67 | $21 | $2,394 | $1,547 | $121 | $212 | ||||||||||||||||||||
Con Edison Transmission | — | — | — | — | — | — | (1) | — | 20 | — | 3 | — | — | — | 1,072 | 2 | — | — | ||||||||||||||||||||
Other (a) | (1) | (1) | 2 | 2 | (1) | — | 2 | — | (1) | — | 5 | 6 | 4 | 2 | 630 | 1,039 | — | — | ||||||||||||||||||||
Total Con Edison | $3,417 | $3,443 | $— | $— | $305 | $285 | $940 | $830 | $49 | $9 | $178 | $162 | $321 | $260 | $47,316 | $44,971 | $818 | $874 |
(a) | Parent company and consolidation adjustments. Other does not represent a business segment. |
As of and for the Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||
Operating revenues | Inter-segment revenues | Depreciation and amortization | Operating income | Other income (deductions) | Interest charges | Income taxes on operating income | Total assets | Construction expenditures | ||||||||||||||||||||||||||||||
(Millions of Dollars) | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||||||
CECONY | ||||||||||||||||||||||||||||||||||||||
Electric | $6,222 | $6,416 | $13 | $13 | $645 | $610 | $1,487 | $1,511 | $3 | $(3) | $342 | $333 | $412 | $401 | $30,580 | $30,369 | $1,133 | $1,165 | ||||||||||||||||||||
Gas | 1,113 | 1,177 | 4 | 4 | 118 | 105 | 273 | 278 | (1) | (1) | 79 | 71 | 73 | 82 | 7,300 | 6,687 | 589 | 466 | ||||||||||||||||||||
Steam | 406 | 529 | 65 | 65 | 62 | 58 | 39 | 100 | — | — | 30 | 31 | 18 | 42 | 2,556 | 2,614 | 74 | 65 | ||||||||||||||||||||
Consolidation adjustments | — | — | (82) | (82) | — | — | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Total CECONY | $7,741 | $8,122 | $— | $— | $825 | $773 | $1,799 | $1,889 | $2 | $(4) | $451 | $435 | $503 | $525 | $40,436 | $39,670 | $1,796 | $1,696 | ||||||||||||||||||||
O&R | ||||||||||||||||||||||||||||||||||||||
Electric | $497 | $523 | $— | $— | $37 | $38 | $86 | $85 | $1 | $(2) | $19 | $18 | $27 | $26 | $1,985 | $1,959 | $70 | $72 | ||||||||||||||||||||
Gas | 133 | 117 | — | — | 13 | 13 | 28 | — | — | (2) | 9 | 9 | 8 | (4) | 799 | 754 | 36 | 29 | ||||||||||||||||||||
Total O&R | $630 | $640 | $— | $— | $50 | $51 | $114 | $85 | $1 | $(4) | $28 | $27 | $35 | $22 | $2,784 | $2,713 | $106 | $101 | ||||||||||||||||||||
Competitive energy businesses | $998 | $1,087 | $7 | $(5) | $30 | $16 | $184 | $53 | $36 | $33 | $23 | $5 | $76 | $24 | $2,394 | $1,547 | $677 | $676 | ||||||||||||||||||||
Con Edison Transmission | — | — | — | — | — | — | (1) | — | 23 | — | 4 | — | — | — | 1,072 | 2 | — | — | ||||||||||||||||||||
Other (a) | (1) | (2) | (7) | 5 | — | — | 1 | 1 | (1) | (2) | 11 | 19 | 6 | 3 | 630 | 1,039 | — | — | ||||||||||||||||||||
Total Con Edison | $9,368 | $9,847 | $— | $— | $905 | $840 | $2,097 | $2,028 | $61 | $23 | $517 | $486 | $620 | $574 | $47,316 | $44,971 | $2,579 | $2,473 |
(a) | Parent company and consolidation adjustments. Other does not represent a business segment. |
(Millions of Dollars) | 2016 | 2015 | ||||||||||
Balance Sheet Location | Gross Amounts of Recognized Assets/(Liabilities) | Gross Amounts Offset | Net Amounts of Assets/ (Liabilities) (a) | Gross Amounts of Recognized Assets/(Liabilities) | Gross Amounts Offset | Net Amounts of Assets/ (Liabilities) (a) | ||||||
Con Edison | ||||||||||||
Fair value of derivative assets | ||||||||||||
Current | $75 | $(60) | $15 | (b) | $59 | $(41) | $18 | (b) | ||||
Current - assets held for sale (c) | — | — | — | 51 | (50) | 1 | ||||||
Noncurrent | 58 | (57) | 1 | 57 | (54) | 3 | ||||||
Noncurrent - assets held for sale (c) | — | — | — | 15 | (15) | — | ||||||
Total fair value of derivative assets | $133 | $(117) | $16 | $182 | $(160) | $22 | ||||||
Fair value of derivative liabilities | ||||||||||||
Current | $(143) | $73 | $(70) | $(144) | $78 | $(66) | ||||||
Current - liabilities held for sale (c) | — | — | — | (115) | 50 | (65) | ||||||
Noncurrent | (111) | 59 | (52) | (102) | 63 | (39) | ||||||
Noncurrent - liabilities held for sale (c) | — | — | — | (28) | 15 | (13) | ||||||
Total fair value of derivative liabilities | $(254) | $132 | $(122) | $(389) | $206 | $(183) | ||||||
Net fair value derivative assets/(liabilities) | $(121) | $15 | $(106) | (b) | $(207) | $46 | $(161) | (b) | ||||
CECONY | ||||||||||||
Fair value of derivative assets | ||||||||||||
Current | $52 | $(46) | $6 | (b) | $40 | $(32) | $8 | (b) | ||||
Noncurrent | 45 | (45) | — | 48 | (47) | 1 | ||||||
Total fair value of derivative assets | $97 | $(91) | $6 | $88 | $(79) | $9 | ||||||
Fair value of derivative liabilities | ||||||||||||
Current | $(122) | $61 | $(61) | $(121) | $71 | $(50) | ||||||
Noncurrent | (92) | 47 | (45) | (92) | 56 | (36) | ||||||
Total fair value of derivative liabilities | $(214) | $108 | $(106) | $(213) | $127 | $(86) | ||||||
Net fair value derivative assets/(liabilities) | $(117) | $17 | $(100) | (b) | $(125) | $48 | $(77) | (b) |
(a) | Derivative instruments and collateral were offset on the consolidated balance sheet as applicable under the accounting rules. The Companies enter into master agreements for their commodity derivatives. These agreements typically provide offset in the event of contract termination. In such case, generally the non-defaulting party’s payable will be offset by the defaulting party’s payable. The non-defaulting party will customarily notify the defaulting party within a specific time period and come to an agreement on the early termination amount. |
(b) | At September 30, 2016 and December 31, 2015, margin deposits for Con Edison ($12 million and $26 million, respectively) and CECONY ($12 million and $26 million, respectively) were classified as derivative assets on the consolidated balance sheet, but not included in the table. Margin is collateral, typically cash, that the holder of a derivative instrument is required to deposit in order to transact on an exchange and to cover its potential losses with its broker or the exchange. |
(c) | Amounts represent derivative assets and liabilities included in assets and liabilities held for sale on the consolidated balance sheet. |
For the Three Months Ended September 30, | ||||||||||||
Con Edison | CECONY | |||||||||||
(Millions of Dollars) | Balance Sheet Location | 2016 | 2015 | 2016 | 2015 | |||||||
Pre-tax gains/(losses) deferred in accordance with accounting rules for regulated operations: | ||||||||||||
Current | Deferred derivative gains | $(1) | $(1) | $(3) | $(1) | |||||||
Noncurrent | Deferred derivative gains | (2) | — | — | — | |||||||
Total deferred gains/(losses) | $(3) | $(1) | $(3) | $(1) | ||||||||
Current | Deferred derivative losses | $(19) | $8 | $(18) | $8 | |||||||
Current | Recoverable energy costs | (39) | (53) | (35) | (49) | |||||||
Noncurrent | Deferred derivative losses | (17) | 14 | (14) | 13 | |||||||
Total deferred gains/(losses) | $(75) | $(31) | $(67) | $(28) | ||||||||
Net deferred gains/(losses) | $(78) | $(32) | $(70) | $(29) | ||||||||
Income Statement Location | ||||||||||||
Pre-tax gain/(loss) recognized in income | ||||||||||||
Purchased power expense | $(37) | (a) | $(31) | (b) | $— | $— | ||||||
Gas purchased for resale | (38) | (26) | — | — | ||||||||
Non-utility revenue | (2) | (a) | 5 | (b) | — | — | ||||||
Total pre-tax gain/(loss) recognized in income | $(77) | $(52) | $— | $— |
(a) | For the three months ended September 30, 2016, Con Edison recorded unrealized losses in non-utility operating revenue ($2 million) and purchase power expense ($23 million). |
(b) | For the three months ended September 30, 2015, Con Edison recorded in purchased power expense an unrealized pre-tax gain of $12 million. |
For the Nine Months Ended September 30, | |||||||||||||
Con Edison | CECONY | ||||||||||||
(Millions of Dollars) | Balance Sheet Location | 2016 | 2015 | 2016 | 2015 | ||||||||
Pre-tax gains/(losses) deferred in accordance with accounting rules for regulated operations: | |||||||||||||
Current | Deferred derivative gains | $6 | $— | $2 | $1 | ||||||||
Noncurrent | Deferred derivative gains | (1) | — | (1) | — | ||||||||
Total deferred gains/(losses) | $5 | $— | $1 | $1 | |||||||||
Current | Deferred derivative losses | $19 | $40 | $16 | $40 | ||||||||
Current | Recoverable energy costs | (163) | (92) | (148) | (87) | ||||||||
Noncurrent | Deferred derivative losses | (5) | (7) | (3) | (5) | ||||||||
Total deferred gains/(losses) | $(149) | $(59) | $(135) | $(52) | |||||||||
Net deferred gains/(losses) | $(144) | $(59) | $(134) | $(51) | |||||||||
Income Statement Location | |||||||||||||
Pre-tax gain/(loss) recognized in income | |||||||||||||
Purchased power expense | $(106) | (a) | $(60) | (b) | $— | $— | |||||||
Gas purchased for resale | (72) | (94) | — | — | |||||||||
Non-utility revenue | 15 | (a) | 20 | (b) | — | — | |||||||
Total pre-tax gain/(loss) recognized in income | $(163) | $(134) | $— | $— |
(a) | For the nine months ended September 30, 2016, Con Edison recorded unrealized gains and losses in non-utility operating revenue ($3 million loss) and purchase power expense ($11 million gain). |
(b) | For the nine months ended September 30, 2015, Con Edison recorded unrealized pre-tax gains and losses in non-utility operating revenue ($3 million loss) and purchased power expense ($6 million gain). |
Electric Energy (MWh) (a)(b) | Capacity (MW) (a) | Natural Gas (Dt) (a)(b) | Refined Fuels (gallons) | |||||
Con Edison | 22,797,395 | 15,472 | 69,954,738 | 1,344,000 | ||||
CECONY | 20,724,225 | 9,000 | 70,100,000 | 1,344,000 |
(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 | $111 | $97 | ||
Collateral posted | 24 | 23 | ||
Additional collateral (b) (downgrade one level from current ratings) | 18 | 15 | ||
Additional collateral (b) (downgrade to below investment grade from current ratings) | 106 | (c) | 84 | (c) |
(a) | Non-derivative transactions for the purchase and sale of electricity and gas and qualifying derivative instruments, which have been designated as normal purchases or normal sales, are excluded from the table. These transactions primarily include purchases of electricity from independent system operators. In the event the Utilities and the competitive energy businesses were no longer extended unsecured credit for such purchases, the Companies would be required to post additional collateral of $10 million at September 30, 2016. For certain other such non-derivative transactions, the Companies could be required to post collateral under certain circumstances, including in the event counterparties had reasonable grounds for insecurity. |
(b) | The Companies measure the collateral requirements by taking into consideration the fair value amounts of derivative instruments that contain credit-risk-related contingent features that are in a net liabilities position plus amounts owed to counterparties for settled transactions and amounts required by counterparties for minimum financial security. The fair value amounts represent unrealized losses, net of any unrealized gains where the Companies have a legally enforceable right to offset. |
(c) | Derivative instruments that are net assets have been excluded from the table. At September 30, 2016, if Con Edison had been downgraded to below investment grade, it would have been required to post additional collateral for such derivative instruments of $9 million. |
• | Level 1 – Consists of assets or liabilities whose value is based on unadjusted quoted prices in active markets at the measurement date. An active market is one in which transactions for assets or liabilities occur with sufficient frequency and volume to provide pricing information on an ongoing basis. This category includes contracts traded on active exchange markets valued using unadjusted prices quoted directly from the exchange. |
• | Level 2 – Consists of assets or liabilities valued using industry standard models and based on prices, other than quoted prices within Level 1, that are either directly or indirectly observable as of the measurement date. The industry standard models consider observable assumptions including time value, volatility factors and current market and contractual prices for the underlying commodities, in addition to other economic measures. This category includes contracts traded on active exchanges or in over-the-counter markets priced with industry standard models. |
• | Level 3 – Consists of assets or liabilities whose fair value is estimated based on internally developed models or methodologies using inputs that are generally less readily observable and supported by little, if any, market activity at the measurement date. Unobservable inputs are developed based on the best available information and subject to cost benefit constraints. This category includes contracts priced using models that are internally developed and contracts placed in illiquid markets. It also includes contracts that expire after the period of time for which quoted prices are available and internal models are used to determine a significant portion of the value. |
2016 | 2015 | ||||||||||||||||||
(Millions of Dollars) | Level 1 | Level 2 | Level 3 | Netting Adjustment (e) | Total | Level 1 | Level 2 | Level 3 | Netting Adjustment (e) | Total | |||||||||
Con Edison | |||||||||||||||||||
Derivative assets: | |||||||||||||||||||
Commodity (a)(b)(c) | $6 | $21 | $6 | $(5) | $28 | $2 | $25 | $13 | $7 | $47 | |||||||||
Commodity held for sale (f) | — | — | — | — | — | — | 63 | 1 | (63) | 1 | |||||||||
Other (a)(b)(d) | 224 | 113 | — | — | 337 | 185 | 112 | — | — | 297 | |||||||||
Total assets | $230 | $134 | $6 | $(5) | $365 | $187 | $200 | $14 | $(56) | $345 | |||||||||
Derivative liabilities: | |||||||||||||||||||
Commodity (a)(b)(c) | $3 | $146 | $5 | $(32) | $122 | $16 | $153 | $1 | $(65) | $105 | |||||||||
Commodity held for sale (f) | — | — | — | — | — | 1 | 133 | 7 | (63) | 78 | |||||||||
Total liabilities | $3 | $146 | $5 | $(32) | $122 | $17 | $286 | $8 | $(128) | $183 | |||||||||
CECONY | |||||||||||||||||||
Derivative assets: | |||||||||||||||||||
Commodity (a)(b)(c) | $4 | $7 | $1 | $6 | $18 | $1 | $9 | $8 | $17 | $35 | |||||||||
Other (a)(b)(d) | 200 | 108 | — | — | 308 | 171 | 105 | — | — | 276 | |||||||||
Total assets | $204 | $115 | $1 | $6 | $326 | $172 | $114 | $8 | $17 | $311 | |||||||||
Derivative liabilities: | |||||||||||||||||||
Commodity (a)(b)(c) | $2 | $126 | $1 | $(23) | $106 | $14 | $129 | $— | $(57) | $86 |
(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. There were no transfers between levels 1, 2 and 3 for the nine months ended September 30, 2016 and for the year ended December 31, 2015. |
(b) | Level 2 assets and liabilities include investments held in the deferred compensation plan and/or non-qualified retirement plans, exchange-traded contracts where there is insufficient market liquidity to warrant inclusion in Level 1, certain over-the-counter derivative instruments for electricity, refined products and natural gas. Derivative instruments classified as Level 2 are valued using industry standard models that incorporate corroborated observable inputs; such as pricing services or prices from similar instruments that trade in liquid markets, time value and volatility factors. |
(c) | The accounting rules for fair value measurements and disclosures require consideration of the impact of nonperformance risk (including credit risk) from a market participant perspective in the measurement of the fair value of assets and liabilities. At September 30, 2016 and December 31, 2015, the Companies determined that nonperformance risk would have no material impact on their financial position or results of operations. |
(d) | Other assets are comprised of assets such as life insurance contracts within the deferred compensation plan and non-qualified retirement plans. |
(e) | Amounts represent the impact of legally-enforceable master netting agreements that allow the Companies to net gain and loss positions and cash collateral held or placed with the same counterparties. |
(f) | Amounts represent derivative assets and liabilities included in Assets and Liabilities held for sale on the consolidated balance sheet. |
Fair Value of Level 3 at September 30, 2016 | Valuation Techniques | Unobservable Inputs | Range | |||
(Millions of Dollars) | ||||||
Con Edison – Commodity | ||||||
Electricity | $(1) | Discounted Cash Flow | Forward energy prices (a) | $19.75-$80.00 per MWh | ||
1 | Discounted Cash Flow | Forward capacity prices (a) | $2.68-$9.45 per kW-month | |||
Transmission Congestion Contracts/Financial Transmission Rights | 1 | Discounted Cash Flow | Discount to adjust auction prices for inter-zonal forward price curves (b) | 52.8%-59.4% | ||
Discount/(premium) to adjust auction prices for historical monthly realized settlements (b) | (44.9)%-58.9% | |||||
Inter-zonal forward price curves adjusted for historical zonal losses (b) | $(0.14)-$2.82 per MWh | |||||
Total Con Edison—Commodity | $1 | |||||
CECONY—Commodity | ||||||
Electricity | $(1) | Discounted Cash Flow | Forward energy prices (a) | $21.10-$80.00 per MWh | ||
Transmission Congestion Contracts | $1 | Discounted Cash Flow | Discount to adjust auction prices for inter-zonal forward price curves (b) | 52.8%-59.4% | ||
Discount/(premium) to adjust auction prices for historical monthly realized settlements (b) | (44.9)%-58.9% | |||||
Total CECONY—Commodity | $— |
(a) | Generally, increases/(decreases) in this input in isolation would result in a higher/(lower) fair value measurement. |
(b) | Generally, increases/(decreases) in this input in isolation would result in a lower/(higher) fair value measurement. |
For the Three Months Ended September 30, | |||||||||
Con Edison | CECONY | ||||||||
(Millions of Dollars) | 2016 | 2015 | 2016 | 2015 | |||||
Beginning balance as of July 1, | $5 | $13 | $2 | $11 | |||||
Included in earnings | (4) | (4) | — | (1) | |||||
Included in regulatory assets and liabilities | (5) | (1) | (3) | (1) | |||||
Purchases | — | 1 | — | 1 | |||||
Sales (a) | 4 | — | — | — | |||||
Settlements | 1 | (5) | 1 | (2) | |||||
Ending balance as of September 30, | $1 | $4 | $— | $8 |
For the Nine Months Ended September 30, | ||||||||
Con Edison | CECONY | |||||||
(Millions of Dollars) | 2016 | 2015 | 2016 | 2015 | ||||
Beginning balance as of January 1, | $6 | $20 | $8 | $13 | ||||
Included in earnings | (1) | (18) | (1) | (5) | ||||
Included in regulatory assets and liabilities | (11) | (1) | (6) | (1) | ||||
Purchases | 2 | 9 | 1 | 5 | ||||
Sales (a) | 4 | — | — | — | ||||
Settlements | 1 | (6) | (2) | (4) | ||||
Ending balance as of September 30, | $1 | $4 | $— | $8 |
(a) | Amounts represent derivative instruments novated as part of the assets of Con Edison Solutions’ retail electric supply business which were sold to a subsidiary of Exelon Corporation (see Note P). |
Project Name (a) | Generating Capacity (b) (MW AC) | Power Purchase Agreement Term (in Years) | Year of Initial Investment | Location | Maximum Exposure to Loss (Millions of Dollars) (c) |
Copper Mountain Solar 3 | 128 | 20 | 2014 | Nevada | $179 |
Panoche Valley (d) | 120 | 20 | 2015 | California | 274 |
Mesquite Solar 1 | 83 | 20 | 2013 | Arizona | 107 |
Copper Mountain Solar 2 | 75 | 25 | 2013 | Nevada | 84 |
California Solar | 55 | 25 | 2012 | California | 70 |
Broken Bow II | 38 | 25 | 2014 | Nebraska | 51 |
Texas Solar 4 | 32 | 25 | 2014 | Texas | 43 |
For the Three Months Ended September 30, 2016 | For the Nine Months Ended September 30, 2016 | At September 30, 2016 | |||||||||||||||
(Millions of Dollars, except percentages) | Operating Revenues | Net Income | Operating Revenues | Net Income | Assets | ||||||||||||
CECONY | $2,828 | 83 | % | $388 | 78 | % | $7,741 | 82 | % | $859 | 83 | % | $40,436 | 85 | % | ||
O&R | 240 | 7 | 27 | 5 | 630 | 7 | 55 | 5 | 2,784 | 6 | |||||||
Total Utilities | 3,068 | 90 | 415 | 83 | 8,371 | 89 | 914 | 88 | 43,220 | 91 | |||||||
Competitive energy businesses (a) | 350 | 10 | 78 | 16 | 998 | 11 | 120 | 12 | 2,394 | 5 | |||||||
Con Edison Transmission | — | — | 10 | 2 | — | — | 11 | 1 | 1,072 | 2 | |||||||
Other (b) | (1) | — | (6) | (1 | ) | (1) | — | (6) | (1 | ) | 630 | 2 | |||||
Total Con Edison | $3,417 | 100 | % | $497 | 100 | % | $9,368 | 100 | % | $1,039 | 100 | % | $47,316 | 100 | % |
(a) | Net income from the competitive energy businesses for the three and nine months ended September 30, 2016 includes $47 million of net gain related to the sale of the retail electric supply business, $5 million of net gain related to the acquisition of a solar electric production investment and for the nine months ended September 30, 2016 includes $5 million of net loss related to the impairment of a solar electric production investment (see Note P to the Third Quarter Financial Statements). Also includes for the three and nine months ended September 30, 2016 $(15) million and $5 million, respectively, of net after-tax mark-to-market gains/(losses). |
(b) | Other includes parent company and consolidation adjustments. |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | |||||||||||
(Millions of Dollars, except per share amounts) | Net Income | Earnings per Share | Net Income | Earnings per Share | ||||||||||||||
CECONY | $388 | $375 | $1.27 | $1.28 | $859 | $935 | $2.87 | $3.19 | ||||||||||
O&R (a) | 27 | 20 | 0.09 | 0.07 | 55 | 35 | 0.18 | 0.12 | ||||||||||
Competitive energy businesses (b) | 78 | 37 | 0.26 | 0.12 | 120 | 55 | 0.40 | 0.19 | ||||||||||
Con Edison Transmission | 10 | — | 0.03 | — | 11 | — | 0.04 | — | ||||||||||
Other (c) | (6) | (4) | (0.02 | ) | (0.01 | ) | (6) | (8) | (0.02 | ) | (0.03 | ) | ||||||
Con Edison (d) | $497 | $428 | $1.63 | $1.46 | $1,039 | $1,017 | $3.47 | $3.47 |
(a) | Includes $3 million or $0.01 a share of net loss for the three and nine months ended September 30, 2015 related to the impairment of certain assets held for sale (see Note P to the Third Quarter Financial Statements). |
(b) | Includes $47 million or $0.15 a share of net gain related to the sale of the retail electric supply business, $5 million or $0.02 a share of net gain related to the acquisition of a solar electric production investment for the three and nine months ended September 30, 2016 and $5 million and or $0.02 a share of net loss related to the impairment of a solar electric production investment for the nine months ended September 30, 2016 (see Note P to the Third Quarter Financial Statements). Also includes $(15) million or $(0.05) a share and $7 million or $0.02 a share of net after-tax mark-to-market gains/(losses) for the three months ended September 30, 2016 and 2015, respectively, and $5 million or $0.02 a share and $2 million or $0.01 a share of net after-tax mark-to-market gains for the nine months ended September 30, 2016 and 2015, respectively. |
(c) | Other includes parent company and consolidation adjustments. |
(d) | Earnings per share on a diluted basis were $1.62 a share and $1.45 a share for the three months ended September 30, 2016 and 2015, respectively, and $3.46 a share for the nine months ended September 30, 2016 and 2015. |
Three Months Variation | Nine Months Variation | ||||||
(Millions of Dollars, except per share amounts) | Earnings per Share Variation | Net Income Variation | Earnings per Share Variation | Net Income Variation | |||
CECONY (a) | |||||||
Changes in rate plans and regulatory charges | $0.05 | $16 | $0.14 | $40 | |||
Weather impact on steam revenues | — | 1 | (0.12) | (36) | |||
Other operations and maintenance expenses | 0.05 | 16 | 0.07 | 21 | |||
Depreciation, property taxes and other tax matters | (0.06) | (18) | (0.30) | (88) | |||
Other (b) | (0.05) | (2) | (0.11) | (13) | |||
Total CECONY | (0.01) | 13 | (0.32) | (76) | |||
O&R (a) | |||||||
Changes in rate plans and regulatory charges | 0.02 | 5 | 0.02 | 7 | |||
Other operations and maintenance expenses | 0.01 | 3 | 0.06 | 17 | |||
Depreciation and property taxes | (0.01) | (3) | (0.03) | (8) | |||
Other (c) | — | 2 | 0.01 | 4 | |||
Total O&R | 0.02 | 7 | 0.06 | 20 | |||
Competitive energy businesses | |||||||
Operating revenues less energy costs | (0.02) | (7) | 0.14 | 41 | |||
Other operations and maintenance expenses | — | (2) | (0.05) | (16) | |||
Gain on sale of retail electric supply business | 0.15 | 47 | 0.15 | 47 | |||
Other (b) | 0.01 | 3 | (0.03) | (7) | |||
Total competitive energy businesses (c) | 0.14 | 41 | 0.21 | 65 | |||
Con Edison Transmission | 0.03 | 10 | 0.04 | 11 | |||
Other, including parent company expenses | (0.01) | (2) | 0.01 | 2 | |||
Total variations | $0.17 | $69 | $— | $22 |
(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 the Companies’ results of operations. |
(b) | Includes the impact of the dilutive effect of Con Edison's stock issuances. |
(c) | These variations include the impairment of certain assets held for sale in 2015, the gain and impairment related to a solar electric production investment and net mark-to-market effects shown in notes (a) and (b) in the Results of Operations table above. |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||
(Millions of Dollars) | 2016 | 2015 | 2016 | 2015 | ||
CECONY | ||||||
Operations | $381 | $383 | $1,109 | $1,074 | ||
Pensions and other postretirement benefits | 87 | 91 | 261 | 273 | ||
Health care and other benefits | 44 | 38 | 122 | 116 | ||
Regulatory fees and assessments (a) | 129 | 153 | 346 | 433 | ||
Other | 83 | 85 | 267 | 244 | ||
Total CECONY | 724 | 750 | 2,105 | 2,140 | ||
O&R | 77 | 82 | 220 | 249 | ||
Competitive energy businesses | 40 | 37 | 124 | 98 | ||
Con Edison Transmission | 1 | — | 1 | — | ||
Other (b) | (2) | — | (3) | (2) | ||
Total other operations and maintenance expenses | $840 | $869 | $2,447 | $2,485 |
(a) | Includes Demand Side Management, System Benefit Charges and Public Service Law 18A assessments which are collected in revenues. |
(b) | Includes parent company and consolidation adjustments. |
CECONY | O&R | Competitive Energy Businesses | Con Edison Transmission | Other (a) | Con Edison (b) | ||||||||||||||||||||
(Millions of Dollars) | Increases (Decreases) Amount | Increases (Decreases) Percent | Increases (Decreases) Amount | Increases (Decreases) Percent | Increases (Decreases) Amount | Increases (Decreases) Percent | Increases (Decreases) Amount | Increases (Decreases) Percent | Increases (Decreases) Amount | Increases (Decreases) Percent | Increases (Decreases) Amount | Increases (Decreases) Percent | |||||||||||||
Operating revenues | $(1) | — | % | $11 | 4.8 | % | $(36) | (9.3 | )% | $— | — | % | $— | —% | $(26) | (0.8 | )% | ||||||||
Purchased power | (31) | (5.9 | ) | 5 | 7.8 | (36) | (13.3 | ) | — | — | — | — | (62) | (7.2 | ) | ||||||||||
Fuel | (2) | (6.5 | ) | — | — | — | — | — | — | — | — | (2) | (6.5 | ) | |||||||||||
Gas purchased for resale | 4 | 13.3 | (1) | (11.1 | ) | 14 | 56.0 | — | — | — | — | 17 | 26.6 | ||||||||||||
Other operations and maintenance | (26) | (3.5 | ) | (5) | (6.1 | ) | 3 | 8.1 | 1 | — | (2) | — | (29) | (3.3 | ) | ||||||||||
Depreciation and amortization | 16 | 6.1 | — | — | 5 | 83.3 | — | — | (1) | — | 20 | 7.0 | |||||||||||||
Taxes, other than income taxes | 17 | 3.5 | 6 | 40.0 | — | — | — | — | 1 | Large | 24 | 4.8 | |||||||||||||
Gain on sale of retail electric supply business | — | — | — | — | 104 | — | — | — | — | — | 104 | — | |||||||||||||
Operating income | 21 | 2.8 | 6 | 14.3 | 82 | Large | (1) | — | 2 | — | 110 | 13.3 | |||||||||||||
Other income less deductions | 5 | Large | 6 | Large | 10 | 58.8 | 20 | — | (1) | — | 40 | Large | |||||||||||||
Net interest expense | 9 | 6.2 | — | — | 5 | Large | 3 | — | (1) | (16.7 | ) | 16 | 9.9 | ||||||||||||
Income before income tax expense | 17 | 2.8 | 12 | 42.9 | 87 | Large | 16 | — | 2 | 33.3 | 134 | 19.8 | |||||||||||||
Income tax expense | 4 | 1.8 | 5 | 62.5 | 46 | Large | 6 | — | 4 | Large | 65 | 26.1 | |||||||||||||
Net income | $13 | 3.5 | % | $7 | 35.0 | % | $41 | Large | $10 | — | % | $(2) | (50.0 | )% | $69 | 16.1 | % |
(a) | Includes parent company and consolidation adjustments. |
(b) | Represents the consolidated financial results of Con Edison and its businesses. |
For the Three Months Ended September 30, 2016 | For the Three Months Ended September 30, 2015 | ||||||||||||||
(Millions of Dollars) | Electric | Gas | Steam | 2016 Total | Electric | Gas | Steam | 2015 Total | 2016-2015 Variation | ||||||
Operating revenues | $2,557 | $208 | $63 | $2,828 | $2,558 | $213 | $58 | $2,829 | $(1) | ||||||
Purchased power | 486 | — | 9 | 495 | 519 | — | 7 | 526 | (31) | ||||||
Fuel | 21 | — | 8 | 29 | 24 | — | 7 | 31 | (2) | ||||||
Gas purchased for resale | — | 34 | — | 34 | — | 30 | — | 30 | 4 | ||||||
Other operations and maintenance | 578 | 102 | 44 | 724 | 598 | 106 | 46 | 750 | (26) | ||||||
Depreciation and amortization | 217 | 41 | 20 | 278 | 207 | 35 | 20 | 262 | 16 | ||||||
Taxes, other than income taxes | 414 | 59 | 29 | 502 | 399 | 59 | 27 | 485 | 17 | ||||||
Operating income | $841 | $(28) | $(47) | $766 | $811 | $(17) | $(49) | $745 | $21 |
For the Three Months Ended | |||
(Millions of Dollars) | September 30, 2016 | September 30, 2015 | Variation |
Operating revenues | $2,557 | $2,558 | $(1) |
Purchased power | 486 | 519 | (33) |
Fuel | 21 | 24 | (3) |
Other operations and maintenance | 578 | 598 | (20) |
Depreciation and amortization | 217 | 207 | 10 |
Taxes, other than income taxes | 414 | 399 | 15 |
Electric operating income | $841 | $811 | $30 |
Millions of kWh Delivered | Revenues in Millions (a) | |||||||||||||
For the Three Months Ended | For the Three Months Ended | |||||||||||||
Description | September 30, 2016 | September 30, 2015 | Variation | Percent Variation | September 30, 2016 | September 30, 2015 | Variation | Percent Variation | ||||||
Residential/Religious (b) | 3,653 | 3,577 | 76 | 2.1 | % | $883 | $903 | $(20) | (2.2 | )% | ||||
Commercial/Industrial | 2,749 | 2,692 | 57 | 2.1 | 551 | 574 | (23) | (4.0 | ) | |||||
Retail choice customers | 8,136 | 7,822 | 314 | 4.0 | 918 | 888 | 30 | 3.4 | ||||||
NYPA, Municipal Agency and other sales | 2,764 | 2,731 | 33 | 1.2 | 204 | 198 | 6 | 3.0 | ||||||
Other operating revenues (c) | — | — | — | — | 1 | (5) | 6 | Large | ||||||
Total | 17,302 | 16,822 | 480 | 2.9 | % | (d) | $2,557 | $2,558 | $(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 regulatory assets and liabilities in accordance with the revenue decoupling mechanism and other provisions of the company’s rate plans. |
(d) | After adjusting for variations, principally weather and billing days, electric delivery volumes in CECONY’s service area increased 1.0 percent in the three months ended September 30, 2016 compared with the 2015 period. |
For the Three Months Ended | ||||
(Millions of Dollars) | September 30, 2016 | September 30, 2015 | Variation | |
Operating revenues | $208 | $213 | $(5) | |
Gas purchased for resale | 34 | 30 | 4 | |
Other operations and maintenance | 102 | 106 | (4) | |
Depreciation and amortization | 41 | 35 | 6 | |
Taxes, other than income taxes | 59 | 59 | — | |
Gas operating income | $(28) | $(17) | $(11) |
Thousands of Dt Delivered | Revenues in Millions (a) | |||||||||||||||
For the Three Months Ended | For the Three Months Ended | |||||||||||||||
Description | September 30, 2016 | September 30, 2015 | Variation | Percent Variation | September 30, 2016 | September 30, 2015 | Variation | Percent Variation | ||||||||
Residential | 4,335 | 4,118 | 217 | 5.3 | % | $88 | $83 | $5 | 6.0 | % | ||||||
General | 3,963 | 3,226 | 737 | 22.8 | 41 | 35 | 6 | 17.1 | ||||||||
Firm transportation | 8,305 | 8,185 | 120 | 1.5 | 53 | 58 | (5) | (8.6 | ) | |||||||
Total firm sales and transportation | 16,603 | 15,529 | 1,074 | 6.9 | (b) | 182 | 176 | 6 | 3.4 | |||||||
Interruptible sales (c) | 1,664 | 1,772 | (108 | ) | (6.1 | ) | 4 | 6 | (2) | (33.3 | ) | |||||
NYPA | 12,800 | 14,023 | (1,223 | ) | (8.7 | ) | 1 | 1 | — | — | ||||||
Generation plants | 35,745 | 30,610 | 5,135 | 16.8 | 7 | 7 | — | — | ||||||||
Other | 4,975 | 4,512 | 463 | 10.3 | 6 | 6 | — | — | ||||||||
Other operating revenues (d) | — | — | — | — | 8 | 17 | (9) | (52.9 | ) | |||||||
Total | 71,787 | 66,446 | 5,341 | 8.0 | % | $208 | $213 | $(5) | (2.3 | )% |
(a) | Revenues from gas sales are subject to a weather normalization clause and a revenue decoupling mechanism as a result of which delivery revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved. |
(b) | After adjusting for variations, principally billing days, firm gas sales and transportation volumes in the company’s service area increased 7.8 percent in the three months ended September 30, 2016 compared with the 2015 period, reflecting primarily increased volumes attributable to additional customers that have converted from oil-to-gas as heating fuel for their buildings. |
(c) | Includes 915 thousands and 765 thousands of Dt for the 2016 and 2015 periods, respectively, which are also reflected in firm transportation and other. |
(d) | Other gas operating revenues generally reflect changes in regulatory assets and liabilities in accordance with the company’s rate plans. |
For the Three Months Ended | ||||
(Millions of Dollars) | September 30, 2016 | September 30, 2015 | Variation | |
Operating revenues | $63 | $58 | $5 | |
Purchased power | 9 | 7 | 2 | |
Fuel | 8 | 7 | 1 | |
Other operations and maintenance | 44 | 46 | (2) | |
Depreciation and amortization | 20 | 20 | — | |
Taxes, other than income taxes | 29 | 27 | 2 | |
Steam operating income | $(47) | $(49) | $2 |
Millions of Pounds Delivered | Revenues in Millions | |||||||||||||||
For the Three Months Ended | For the Three Months Ended | |||||||||||||||
Description | September 30, 2016 | September 30, 2015 | Variation | Percent Variation | September 30, 2016 | September 30, 2015 | Variation | Percent Variation | ||||||||
General | 10 | 19 | (9 | ) | (47.4 | )% | $2 | $2 | $— | — | % | |||||
Apartment house | 776 | 816 | (40 | ) | (4.9 | ) | 15 | 16 | (1) | (6.3 | ) | |||||
Annual power | 2,950 | 2,961 | (11 | ) | (0.4 | ) | 49 | 46 | 3 | 6.5 | ||||||
Other operating revenues (a) | — | — | — | — | (3) | (6) | 3 | 50.0 | ||||||||
Total | 3,736 | 3,796 | (60 | ) | (1.6 | )% | (b) | $63 | $58 | $5 | 8.6 | % |
(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, principally weather and billing days, steam sales and deliveries decreased 3.4 percent in three months ended September 30, 2016 compared with the 2015 period. |
For the Three Months Ended September 30, 2016 | For the Three Months Ended September 30, 2015 | |||||||||||
(Millions of Dollars) | Electric | Gas | 2016 Total | Electric | Gas | 2015 Total | 2016-2015 Variation | |||||
Operating revenues | $213 | $27 | $240 | $205 | $24 | $229 | $11 | |||||
Purchased power | 69 | — | 69 | 64 | — | 64 | 5 | |||||
Gas purchased for resale | — | 8 | 8 | — | 9 | 9 | (1) | |||||
Other operations and maintenance | 63 | 14 | 77 | 66 | 16 | 82 | (5) | |||||
Depreciation and amortization | 12 | 5 | 17 | 13 | 4 | 17 | — | |||||
Taxes, other than income taxes | 14 | 7 | 21 | 11 | 4 | 15 | 6 | |||||
Operating income | $55 | $(7) | $48 | $51 | $(9) | $42 | $6 |
For the Three Months Ended | |||
(Millions of Dollars) | September 30, 2016 | September 30, 2015 | Variation |
Operating revenues | $213 | $205 | $8 |
Purchased power | 69 | 64 | 5 |
Other operations and maintenance | 63 | 66 | (3) |
Depreciation and amortization | 12 | 13 | (1) |
Taxes, other than income taxes | 14 | 11 | 3 |
Electric operating income | $55 | $51 | $4 |
Millions of kWh Delivered | Revenues in Millions (a) | ||||||||||||||
For the Three Months Ended | For the Three Months Ended | ||||||||||||||
Description | September 30, 2016 | September 30, 2015 | Variation | Percent Variation | September 30, 2016 | September 30, 2015 | Variation | Percent Variation | |||||||
Residential/Religious (b) | 585 | 533 | 52 | 9.8 | % | $109 | $99 | $10 | 10.1 | % | |||||
Commercial/Industrial | 216 | 220 | (4 | ) | (1.8 | ) | 35 | 35 | — | — | |||||
Retail choice customers | 925 | 926 | (1 | ) | (0.1 | ) | 70 | 69 | 1 | 1.4 | |||||
Public authorities | 31 | 28 | 3 | 10.7 | 2 | 3 | (1 | ) | (33.3 | ) | |||||
Other operating revenues (c) | — | — | — | — | (3) | (1) | (2) | Large | |||||||
Total | 1,757 | 1,707 | 50 | 2.9 | % | (d) | $213 | $205 | $8 | 3.9 | % |
(a) | O&R’s New York electric delivery revenues are subject to a revenue decoupling mechanism, as a result of which delivery revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved. O&R’s electric sales in New Jersey and Pennsylvania 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 plans. |
(d) | After adjusting for weather and other variations, electric delivery volumes in O&R’s service area decreased 0.9 percent in the three months ended September 30, 2016 compared with the 2015 period. |
For the Three Months Ended | |||
(Millions of Dollars) | September 30, 2016 | September 30, 2015 | Variation |
Operating revenues | $27 | $24 | $3 |
Gas purchased for resale | 8 | 9 | (1) |
Other operations and maintenance | 14 | 16 | (2) |
Depreciation and amortization | 5 | 4 | 1 |
Taxes, other than income taxes | 7 | 4 | 3 |
Gas operating income | $(7) | $(9) | $2 |
Thousands of Dt Delivered | Revenues in Millions (a) | ||||||||||||||||
For the Three Months Ended | For the Three Months Ended | ||||||||||||||||
Description | September 30, 2016 | September 30, 2015 | Variation | Percent Variation | September 30, 2016 | September 30, 2015 | Variation | Percent Variation | |||||||||
Residential | 550 | 481 | 69 | 14.3 | % | $9 | $7 | $2 | 28.6 | % | |||||||
General | 177 | 120 | 57 | 47.5 | 2 | 1 | 1 | Large | |||||||||
Firm transportation | 884 | 980 | (96 | ) | (9.8 | ) | 8 | 8 | — | — | |||||||
Total firm sales and transportation | 1,611 | 1,581 | 30 | 1.9 | (b) | 19 | 16 | 3 | 18.8 | ||||||||
Interruptible sales | 893 | 938 | (45 | ) | (4.8 | ) | — | — | — | — | |||||||
Generation plants | 3 | 10 | (7 | ) | (70.0 | ) | — | — | — | — | |||||||
Other | 70 | 70 | — | — | — | — | — | — | |||||||||
Other gas revenues | — | — | — | — | 8 | 8 | — | — | |||||||||
Total | 2,577 | 2,599 | (22 | ) | (0.8 | )% | $27 | $24 | $3 | 12.5 | % |
(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 decreased 1.7 percent in the three months ended September 30, 2016 compared with 2015 period. |
For the Three Months Ended | |||||
(Millions of Dollars) | September 30, 2016 | September 30, 2015 | Variation | ||
Operating revenues | $350 | $386 | $(36) | ||
Purchased power | 234 | 270 | (36) | ||
Gas purchased for resale | 39 | 25 | 14 | ||
Other operations and maintenance | 40 | 37 | 3 | ||
Depreciation and amortization | 11 | 6 | 5 | ||
Taxes, other than income taxes | 5 | 5 | — | ||
Gain on sale of retail electric supply business | (104) | — | (104) | ||
Operating income | $125 | $43 | $82 |
CECONY | O&R | Competitive Energy Businesses | Con Edison Transmission | Other (a) | Con Edison (b) | |||||||||||||||||||
(Millions of Dollars) | Increases (Decreases) Amount | Increases (Decreases) Percent | Increases (Decreases) Amount | Increases (Decreases) Percent | Increases (Decreases) Amount | Increases (Decreases) Percent | Increases (Decreases) Amount | Increases (Decreases) Percent | Increases (Decreases) Amount | Increases (Decreases) Percent | Increases (Decreases) Amount | Increases (Decreases) Percent | ||||||||||||
Operating revenues | $(381) | (4.7 | )% | $(10) | (1.6 | )% | $(89) | (8.2 | )% | $— | — | % | $1 | 50.0 | % | $(479) | (4.9 | )% | ||||||
Purchased power | (207) | (14.5 | ) | (15) | (8.9 | ) | (136) | (16.7 | ) | — | — | 1 | — | (357) | (14.9 | ) | ||||||||
Fuel | (83) | (38.4 | ) | — | — | — | — | — | — | — | — | (83) | (38.4 | ) | ||||||||||
Gas purchased for resale | (65) | (23.0 | ) | (8) | (20.0 | ) | (22) | (23.4 | ) | — | — | — | — | (95) | (22.9 | ) | ||||||||
Other operations and maintenance | (35) | (1.6 | ) | (29) | (11.6 | ) | 26 | 26.5 | 1 | — | (1) | (50.0 | ) | (38) | (1.5 | ) | ||||||||
Depreciation and amortization | 52 | 6.7 | (1) | (2.0 | ) | 14 | 87.5 | — | — | — | — | 65 | 7.7 | |||||||||||
Taxes, other than income taxes | 47 | 3.4 | 14 | 30.4 | 2 | 14.3 | — | — | 1 | — | 64 | 4.4 | ||||||||||||
Gain on sale of retail electric supply business | — | — | — | — | 104 | — | — | — | — | — | 104 | — | ||||||||||||
Operating income | (90) | (4.8 | ) | 29 | 34.1 | 131 | Large | (1) | — | — | — | 69 | 3.4 | |||||||||||
Other income less deductions | 6 | Large | 5 | Large | 3 | 9.4 | 23 | — | 1 | Large | 38 | Large | ||||||||||||
Net interest expense | 16 | 3.7 | 1 | 3.7 | 18 | Large | 4 | — | (8) | (42.1 | ) | 31 | 6.4 | |||||||||||
Income before income tax expense | (100) | (6.9 | ) | 33 | 61.1 | 116 | Large | 18 | — | 9 | 47.4 | 76 | 4.9 | |||||||||||
Income tax expense | (24) | (4.7 | ) | 13 | 68.4 | 51 | Large | 7 | — | 7 | 63.6 | 54 | 9.9 | |||||||||||
Net income | $(76) | (8.1 | )% | $20 | 57.1 | % | $65 | Large | $11 | — | % | $2 | 25.0 | % | $22 | 2.2 | % |
(a) | Includes parent company and consolidation adjustments. |
(b) | Represents the consolidated financial results of Con Edison and its businesses. |
For the Nine Months Ended September 30, 2016 | For the Nine Months Ended September 30, 2015 | ||||||||||||||
(Millions of Dollars) | Electric | Gas | Steam | 2016 Total | Electric | Gas | Steam | 2015 Total | 2016-2015 Variation | ||||||
Operating revenues | $6,222 | $1,113 | $406 | $7,741 | $6,416 | $1,177 | $529 | $8,122 | $(381) | ||||||
Purchased power | 1,191 | — | 25 | 1,216 | 1,395 | — | 28 | 1,423 | (207) | ||||||
Fuel | 81 | — | 52 | 133 | 96 | — | 120 | 216 | (83) | ||||||
Gas purchased for resale | — | 217 | — | 217 | — | 282 | — | 282 | (65) | ||||||
Other operations and maintenance | 1,659 | 307 | 139 | 2,105 | 1,677 | 323 | 140 | 2,140 | (35) | ||||||
Depreciation and amortization | 645 | 118 | 62 | 825 | 610 | 105 | 58 | 773 | 52 | ||||||
Taxes, other than income taxes | 1,159 | 198 | 89 | 1,446 | 1,127 | 189 | 83 | 1,399 | 47 | ||||||
Operating income | $1,487 | $273 | $39 | $1,799 | $1,511 | $278 | $100 | $1,889 | $(90) |
For the Nine Months Ended | |||
(Millions of Dollars) | September 30, 2016 | September 30, 2015 | Variation |
Operating revenues | $6,222 | $6,416 | $(194) |
Purchased power | 1,191 | 1,395 | (204) |
Fuel | 81 | 96 | (15) |
Other operations and maintenance | 1,659 | 1,677 | (18) |
Depreciation and amortization | 645 | 610 | 35 |
Taxes, other than income taxes | 1,159 | 1,127 | 32 |
Electric operating income | $1,487 | $1,511 | $(24) |
Millions of kWh Delivered | Revenues in Millions (a) | |||||||||||||
For the Nine Months Ended | For the Nine Months Ended | |||||||||||||
Description | September 30, 2016 | September 30, 2015 | Variation | Percent Variation | September 30, 2016 | September 30, 2015 | Variation | Percent Variation | ||||||
Residential/Religious (b) | 8,130 | 8,247 | (117 | ) | (1.4 | )% | $2,017 | $2,198 | $(181) | (8.2 | )% | |||
Commercial/Industrial | 7,220 | 7,375 | (155 | ) | (2.1 | ) | 1,381 | 1,549 | (168) | (10.8 | ) | |||
Retail choice customers | 20,404 | 20,339 | 65 | 0.3 | 2,114 | 2,102 | 12 | 0.6 | ||||||
NYPA, Municipal Agency and other sales | 7,641 | 7,687 | (46 | ) | (0.6 | ) | 474 | 467 | 7 | 1.5 | ||||
Other operating revenues (c) | — | — | — | — | 236 | 100 | 136 | Large | ||||||
Total | 43,395 | 43,648 | (253 | ) | (0.6 | )% | (d) | $6,222 | $6,416 | $(194) | (3.0 | )% |
(a) | Revenues from electric sales are subject to a revenue decoupling mechanism, as a result of which delivery revenues generally are not affected by changes in delivery volumes from levels assumed when rates were approved. |
(b) | “Residential/Religious” generally includes single-family dwellings, individual apartments in multi-family dwellings, religious organizations and certain other not-for-profit organizations. |
(c) | Other electric operating revenues generally reflect changes in regulatory assets and liabilities in accordance with the revenue decoupling mechanism and other provisions of the company’s rate plans. |
(d) | After adjusting for variations, principally weather and billing days, electric delivery volumes in CECONY’s service area increased 0.5 percent in the nine months ended September 30, 2016 compared with the 2015 period. |
For the Nine Months Ended | |||
(Millions of Dollars) | September 30, 2016 | September 30, 2015 | Variation |
Operating revenues | $1,113 | $1,177 | $(64) |
Gas purchased for resale | 217 | 282 | (65) |
Other operations and maintenance | 307 | 323 | (16) |
Depreciation and amortization | 118 | 105 | 13 |
Taxes, other than income taxes | 198 | 189 | 9 |
Gas operating income | $273 | $278 | $(5) |
Thousands of Dt Delivered | Revenues in Millions (a) | |||||||||||||||
For the Nine Months Ended | For the Nine Months Ended | |||||||||||||||
Description | September 30, 2016 | September 30, 2015 | Variation | Percent Variation | September 30, 2016 | September 30, 2015 | Variation | Percent Variation | ||||||||
Residential | 35,565 | 39,010 | (3,445 | ) | (8.8 | )% | $506 | $532 | $(26) | (4.9 | )% | |||||
General | 20,962 | 22,641 | (1,679 | ) | (7.4 | ) | 200 | 217 | (17) | (7.8 | ) | |||||
Firm transportation | 51,333 | 57,578 | (6,245 | ) | (10.8 | ) | 332 | 342 | (10) | (2.9 | ) | |||||
Total firm sales and transportation | 107,860 | 119,229 | (11,369 | ) | (9.5 | ) | (b) | 1,038 | 1,091 | (53) | (4.9 | ) | ||||
Interruptible sales (c) | 7,587 | 5,933 | 1,654 | 27.9 | 29 | 45 | (16) | (35.6 | ) | |||||||
NYPA | 31,970 | 33,825 | (1,855 | ) | (5.5 | ) | 2 | 2 | — | — | ||||||
Generation plants | 70,895 | 62,650 | 8,245 | 13.2 | 19 | 20 | (1) | (5.0 | ) | |||||||
Other | 16,442 | 16,285 | 157 | 1.0 | 25 | 21 | 4 | 19.0 | ||||||||
Other operating revenues (d) | — | — | — | — | — | (2) | 2 | Large | ||||||||
Total | 234,754 | 237,922 | (3,168 | ) | (1.3 | )% | $1,113 | $1,177 | $(64) | (5.4 | )% |
(a) | Revenues from gas sales are subject to a weather normalization clause and a revenue decoupling mechanism as a result of which delivery revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved. |
(b) | After adjusting for variations, principally billing days, firm gas sales and transportation volumes in the company’s service area increased 4.1 percent in the nine months ended September 30, 2016 compared with the 2015 period, reflecting primarily increased volumes attributable to additional customers that have converted from oil-to-gas as heating fuel for their buildings. |
(c) | Includes 3,940 thousands and 1,809 thousands of Dt for the 2016 and 2015 periods, respectively, which are also reflected in firm transportation and other. |
(d) | Other gas operating revenues generally reflect changes in regulatory assets and liabilities in accordance with the company’s rate plans. |
For the Nine Months Ended | |||
(Millions of Dollars) | September 30, 2016 | September 30, 2015 | Variation |
Operating revenues | $406 | $529 | $(123) |
Purchased power | 25 | 28 | (3) |
Fuel | 52 | 120 | (68) |
Other operations and maintenance | 139 | 140 | (1) |
Depreciation and amortization | 62 | 58 | 4 |
Taxes, other than income taxes | 89 | 83 | 6 |
Steam operating income | $39 | $100 | $(61) |
Millions of Pounds Delivered | Revenues in Millions | ||||||||||||||
For the Nine Months Ended | For the Nine Months Ended | ||||||||||||||
Description | September 30, 2016 | September 30, 2015 | Variation | Percent Variation | September 30, 2016 | September 30, 2015 | Variation | Percent Variation | |||||||
General | 345 | 460 | (115 | ) | (25.0 | )% | $18 | $24 | $(6) | (25.0 | )% | ||||
Apartment house | 4,251 | 5,056 | (805 | ) | (15.9 | ) | 107 | 145 | (38) | (26.2 | ) | ||||
Annual power | 10,640 | 12,593 | (1,953 | ) | (15.5 | ) | 284 | 379 | (95) | (25.1 | ) | ||||
Other operating revenues (a) | — | — | — | — | (3 | ) | (19) | 16 | 84.2 | % | |||||
Total | 15,236 | 18,109 | (2,873 | ) | (15.9 | )% | (b) | $406 | $529 | $(123) | (23.3 | )% |
(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, principally weather and billing days, steam sales and deliveries decreased 0.5 percent in nine months ended September 30, 2016 compared with the 2015 period. |
For the Nine Months Ended September 30, 2016 | For the Nine Months Ended September 30, 2015 | ||||||||||
(Millions of Dollars) | Electric | Gas | 2016 Total | Electric | Gas | 2015 Total | 2016-2015 Variation | ||||
Operating revenues | $497 | $133 | $630 | $523 | $117 | $640 | $(10) | ||||
Purchased power | 154 | — | 154 | 169 | — | 169 | (15) | ||||
Gas purchased for resale | — | 32 | 32 | — | 40 | 40 | (8) | ||||
Other operations and maintenance | 180 | 40 | 220 | 198 | 51 | 249 | (29) | ||||
Depreciation and amortization | 37 | 13 | 50 | 38 | 13 | 51 | (1) | ||||
Taxes, other than income taxes | 40 | 20 | 60 | 33 | 13 | 46 | 14 | ||||
Operating income | $86 | $28 | $114 | $85 | $0 | $85 | $29 |
For the Nine Months Ended | |||
(Millions of Dollars) | September 30, 2016 | September 30, 2015 | Variation |
Operating revenues | $497 | $523 | $(26) |
Purchased power | 154 | 169 | (15) |
Other operations and maintenance | 180 | 198 | (18) |
Depreciation and amortization | 37 | 38 | (1) |
Taxes, other than income taxes | 40 | 33 | 7 |
Electric operating income | $86 | $85 | $1 |
Millions of kWh Delivered | Revenues in Millions (a) | |||||||||||||
For the Nine Months Ended | For the Nine Months Ended | |||||||||||||
Description | September 30, 2016 | September 30, 2015 | Variation | Percent Variation | September 30, 2016 | September 30, 2015 | Variation | Percent Variation | ||||||
Residential/Religious (b) | 1,307 | 1,278 | 29 | 2.3 | % | $240 | $246 | $(6) | (2.4 | )% | ||||
Commercial/Industrial | 607 | 611 | (4 | ) | (0.7 | ) | 89 | 98 | (9) | (9.2 | ) | |||
Retail choice customers | 2,434 | 2,504 | (70 | ) | (2.8 | ) | 166 | 168 | (2) | (1.2 | ) | |||
Public authorities | 76 | 78 | (2 | ) | (2.6 | ) | 6 | 8 | (2) | (25.0 | ) | |||
Other operating revenues (c) | — | — | — | — | (4) | 3 | (7) | Large | ||||||
Total | 4,424 | 4,471 | (47 | ) | (1.1 | )% | (d) | $497 | $523 | $(26) | (5.0 | )% |
(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 and Pennsylvania 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 plans. |
(d) | After adjusting for weather and other variations, electric delivery volumes in O&R’s service area decreased 1.1 percent in the nine months ended September 30, 2016 compared with the 2015 period. |
For the Nine Months Ended | ||||
(Millions of Dollars) | September 30, 2016 | September 30, 2015 | Variation | |
Operating revenues | $133 | $117 | $16 | |
Gas purchased for resale | 32 | 40 | (8) | |
Other operations and maintenance | 40 | 51 | (11) | |
Depreciation and amortization | 13 | 13 | — | |
Taxes, other than income taxes | 20 | 13 | 7 | |
Gas operating income | $28 | $0 | $28 |
Thousands of Dt Delivered | Revenues in Millions (a) | |||||||||||||||||
For the Nine Months Ended | For the Nine Months Ended | |||||||||||||||||
Description | September 30, 2016 | September 30, 2015 | Variation | Percent Variation | September 30, 2016 | September 30, 2015 | Variation | Percent Variation | ||||||||||
Residential | 5,266 | 5,789 | (523 | ) | (9.0 | )% | $55 | $55 | $— | — | % | |||||||
General | 1,224 | 1,294 | (70 | ) | (5.4 | ) | 10 | 10 | — | — | ||||||||
Firm transportation | 7,188 | 9,012 | (1,824 | ) | (20.2 | ) | 49 | 51 | (2) | (3.9 | ) | |||||||
Total firm sales and transportation | 13,678 | 16,095 | (2,417 | ) | (15.0 | ) | (b) | 114 | 116 | (2) | (1.7 | ) | ||||||
Interruptible sales | 3,020 | 3,237 | (217 | ) | (6.7 | ) | 2 | 2 | — | — | ||||||||
Generation plants | 15 | 25 | (10 | ) | (40.0 | ) | — | — | — | — | ||||||||
Other | 583 | 674 | (91 | ) | (13.5 | ) | — | — | — | — | ||||||||
Other gas revenues | — | — | — | — | 17 | (1) | 18 | Large | ||||||||||
Total | 17,296 | 20,031 | (2,735 | ) | (13.7 | )% | $133 | $117 | $16 | 13.7 | % |
(a) | Revenues from New York gas sales are subject to a weather normalization clause and a revenue decoupling mechanism as a result of which delivery revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved. |
(b) | After adjusting for weather and other variations, total firm sales and transportation volumes increased 2.3 percent in the nine months ended September 30, 2016 compared with 2015 period. |
For the Nine Months Ended | ||||
(Millions of Dollars) | September 30, 2016 | September 30, 2015 | Variation | |
Operating revenues | $998 | $1,087 | $(89) | |
Purchased power | 676 | 812 | (136) | |
Gas purchased for resale | 72 | 94 | (22) | |
Other operations and maintenance | 124 | 98 | 26 | |
Depreciation and amortization | 30 | 16 | 14 | |
Taxes, other than income taxes | 16 | 14 | 2 | |
Gain on sale of retail electric supply business | (104) | — | (104) | |
Operating income | $184 | $53 | $131 |
For the Nine Months Ended September 30, | |||||||||
Con Edison | CECONY | ||||||||
(Millions of Dollars) | 2016 | 2015 | Variation | 2016 | 2015 | Variation | |||
Operating activities | $2,336 | $2,199 | $137 | $2,017 | $1,802 | $215 | |||
Investing activities | (3,717) | (2,687) | (1,030) | (1,943) | (1,900) | (43) | |||
Financing activities | 583 | (118) | 701 | (891) | (496) | (395) | |||
Net change for the period | (798) | (606) | (192) | (817) | (594) | (223) | |||
Balance at beginning of period | 944 | 699 | 245 | 843 | 645 | 198 | |||
Balance at end of period | 146 | 93 | 53 | 26 | 51 | (25) | |||
Less: Change in cash balances held for sale | (4) | 2 | (6) | — | — | — | |||
Balance at end of period excluding held for sale | $150 | $91 | $59 | $26 | $51 | $(25) |
2016 | 2015 | |||
(Millions of Dollars, except Weighted Average Yield) | Outstanding at September 30, | Daily average | Outstanding at September 30, | Daily average |
Con Edison | $601 | $813 | $1,160 | $765 |
CECONY | $480 | $385 | $649 | $367 |
Weighted average yield | 0.7% | 0.6% | 0.3% | 0.4% |
Ratio of Earnings to Fixed Charges | |||
For the Nine Months Ended September 30, 2016 | For the Nine Months Ended September 30, 2015 | For the Twelve Months Ended December 31, 2015 | |
Con Edison | 4.0 | 3.9 | 3.5 |
CECONY | 3.8 | 4.1 | 3.6 |
Common Equity Ratio (Percent of total capitalization) | ||
September 30, 2016 | December 31, 2015 | |
Con Edison | 50.9 | 52.1 |
CECONY | 51.0 | 51.4 |
Con Edison | CECONY | ||
(Millions of Dollars) | 2016 vs. 2015 Variation | 2016 vs. 2015 Variation | |
Assets | |||
Investments | $1,047 | $32 | |
Prepayments | 403 | 351 | |
Regulatory asset — Unrecognized pension and other postretirement costs | (507) | (477) | |
Income taxes receivable | (100) | — | |
Liabilities | |||
Deferred income taxes and investment tax credits | $618 | $717 | |
Pension and retiree benefits | (714) | (670) |
Project Name | Production Technology | Generating Capacity (a) (MW AC) | Power Purchase Agreement Term (in Years) | Actual/Expected In-Service Date | Location |
Wholly owned projects | |||||
Pilesgrove (c) | Solar | 18 | n/a (b) | 2011 | New Jersey |
Flemington Solar | Solar | 8 | n/a (b) | 2011 | New Jersey |
Frenchtown I, II and III | Solar | 14 | n/a (b) | 2011-13 | New Jersey |
PA Solar | Solar | 10 | n/a (b) | 2012 | Pennsylvania |
California Solar 2 | Solar | 80 | 20 | 2014-16 | California |
Oak Tree Wind | Wind | 20 | 20 | 2014 | South Dakota |
Texas Solar 3 | Solar | 6 | 25 | 2015 | Texas |
Texas Solar 5 | Solar | 95 | 25 | 2015 | Texas |
Campbell County Wind | Wind | 95 | 30 | 2015 | South Dakota |
Texas Solar 7 (c) | Solar | 106 | 25 | 2016 | Texas |
Projects of less than 5 MW | Solar | 20 | Various (b) | Various | Various |
Jointly owned projects (d) | |||||
California Solar | Solar | 55 | 25 | 2012-13 | California |
Mesquite Solar 1 | Solar | 83 | 20 | 2013 | Arizona |
Copper Mountain Solar 2 | Solar | 75 | 25 | 2013-15 | Nevada |
Copper Mountain Solar 3 | Solar | 128 | 20 | 2014-15 | Nevada |
Broken Bow II | Wind | 38 | 25 | 2014 | Nebraska |
Texas Solar 4 | Solar | 32 | 25 | 2014 | Texas |
Total MW (AC) in Operation | 883 | ||||
California Solar 3 | Solar | 110 | 20 | 2016 | California |
Upton County | Solar | 150 | 25 | 2017 | Texas |
Panoche Valley (d) | Solar | 120 | 20 | 2019 | California |
Total MW (AC) in Construction | 380 | ||||
Total MW (AC), All Projects | 1,263 (e) |
(a) | Represents Con Edison Development’s ownership interest in the project. |
(b) | New Jersey, Pennsylvania and Massachusetts assets have 3-4 year Solar Renewable Energy Credit hedges in place. |
(c) | See Note P to the Third Quarter Financial Statements. |
(d) | See Note M to the Third Quarter Financial Statements. |
(e) | Additionally, in October 2015, Con Edison Development purchased Lost Hills, which is developing but has not started constructing, a 20 MW (AC) solar electric production project in California. |
95% Confidence Level, One-Day Holding Period | September 30, 2016 | December 31, 2015 | |
(Millions of Dollars) | |||
Average for the period | $2 | $1 | |
High | 4 | 2 | |
Low | 1 | — |
Exhibit 12.1 | Statement of computation of Con Edison’s ratio of earnings to fixed charges for the nine-month periods ended September 30, 2016 and 2015, and the 12-month period ended December 31, 2015. |
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. |
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. |
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 12.2 | Statement of computation of CECONY’s ratio of earnings to fixed charges for the nine-month periods ended September 30, 2016 and 2015, and the 12-month period ended December 31, 2015. |
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. |
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. |
Consolidated Edison, Inc. | ||
Consolidated Edison Company of New York, Inc. | ||
Date: November 3, 2016 | By | /s/ Robert Hoglund |
Robert Hoglund Senior Vice President, Chief Financial Officer and Duly Authorized Officer |
For the Nine Months Ended September 30, 2016 | For The Twelve Months Ended December 31, 2015 | For the Nine Months Ended September 30, 2015 | ||||||
Earnings | ||||||||
Net Income | $1,039 | $1,193 | $1,017 | |||||
Preferred Stock Dividend | — | — | — | |||||
(Income)/Loss from Equity Investees | (28) | (34) | (33) | |||||
Minority Interest Loss | — | — | — | |||||
Income Tax | 602 | 605 | 548 | |||||
Pre-Tax Income | $1,613 | $1,764 | $1,532 | |||||
Add: Fixed Charges* | 542 | 701 | 522 | |||||
Add: Distributed Income of Equity Investees | — | — | — | |||||
Subtract: Interest Capitalized | — | — | — | |||||
Subtract: Pre-Tax Preferred Stock Dividend Requirement | — | — | — | |||||
Earnings | $2,155 | $2,465 | $2,054 | |||||
* Fixed Charges | ||||||||
Interest on Long-term Debt | $493 | $618 | $458 | |||||
Amortization of Debt Discount, Premium and Expense | 11 | 14 | 11 | |||||
Interest Capitalized | — | — | — | |||||
Other Interest | 17 | 24 | 19 | |||||
Interest Component of Rentals | 21 | 45 | 34 | |||||
Pre-Tax Preferred Stock Dividend Requirement | — | — | — | |||||
Fixed Charges | $542 | $701 | $522 | |||||
Ratio of Earnings to Fixed Charges | 4.0 | 3.5 | 3.9 |
/s/ John McAvoy |
John McAvoy |
Chairman, President and Chief Executive Officer |
/s/ Robert Hoglund |
Robert Hoglund |
Senior Vice President and Chief Financial Officer |
/s/ John McAvoy |
John McAvoy |
/s/ Robert Hoglund |
Robert Hoglund |
For the Nine Months Ended September 30, 2016 | For the Twelve Months Ended December 31, 2015 | For the Nine Months Ended September 30, 2015 | ||||||
Earnings | ||||||||
Net Income | $859 | $1,084 | $935 | |||||
Preferred Stock Dividend | — | — | — | |||||
(Income)/Loss from Equity Investees | — | — | — | |||||
Minority Interest Loss | — | — | — | |||||
Income Tax | 491 | 574 | 515 | |||||
Pre-Tax Income | $1,350 | $1,658 | $1,450 | |||||
Add: Fixed Charges* | 474 | 629 | 469 | |||||
Add: Distributed Income of Equity Investees | — | — | — | |||||
Subtract: Interest Capitalized | — | — | — | |||||
Subtract: Pre-Tax Preferred Stock Dividend Requirement | — | — | — | |||||
Earnings | $1,824 | $2,287 | $1,919 | |||||
* Fixed Charges | ||||||||
Interest on Long-term Debt | $430 | $553 | $413 | |||||
Amortization of Debt Discount, Premium and Expense | 10 | 14 | 10 | |||||
Interest Capitalized | — | — | — | |||||
Other Interest | 14 | 19 | 14 | |||||
Interest Component of Rentals | 20 | 43 | 32 | |||||
Pre-Tax Preferred Stock Dividend Requirement | — | — | — | |||||
Fixed Charges | $474 | $629 | $469 | |||||
Ratio of Earnings to Fixed Charges | 3.8 | 3.6 | 4.1 |
/s/ John McAvoy |
John McAvoy |
Chairman and Chief Executive Officer |
/s/ Robert Hoglund |
Robert Hoglund |
Senior Vice President and Chief Financial Officer |
/s/ John McAvoy |
John McAvoy |
/s/ Robert Hoglund |
Robert Hoglund |
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9 Months Ended
Document Information [Line Items]
Document Type
10-Q
Amendment Flag
false
Document Period End Date
Sep. 30, 2016
Document Fiscal Year Focus
2016
Document Fiscal Period Focus
Q3
Trading Symbol
ED
Entity Registrant Name
CONSOLIDATED EDISON INC
Entity Central Index Key
0001047862
Current Fiscal Year End Date
--12-31
Entity Filer Category
Large Accelerated Filer
Entity Common Stock, Shares Outstanding
304,727,523
CECONY
Document Information [Line Items]
Entity Registrant Name
CONSOLIDATED EDISON CO OF NEW YORK INC
Entity Central Index Key
0000023632
Current Fiscal Year End Date
--12-31
Entity Filer Category
Non-accelerated Filer
$ in Millions3 Months Ended
9 Months Ended
NET INCOME
$ 497
$ 428
$ 1,039
$ 1,017
OTHER COMPREHENSIVE INCOME, NET OF TAXES
Pension and other postretirement benefit plan liability adjustments, net of taxes
1
1
2
7
TOTAL OTHER COMPREHENSIVE INCOME, NET OF TAXES
1
1
2
7
COMPREHENSIVE INCOME
498
429
1,041
1,024
CECONY
NET INCOME
388
375
859
935
OTHER COMPREHENSIVE INCOME, NET OF TAXES
Pension and other postretirement benefit plan liability adjustments, net of taxes
0
1
1
2
TOTAL OTHER COMPREHENSIVE INCOME, NET OF TAXES
0
1
1
2
COMPREHENSIVE INCOME
$ 388
$ 376
$ 860
$ 937
$ in Millions
Accounts receivable - customers, allowance for uncollectible accounts
$ 75
$ 85
Other receivables, allowance for uncollectible accounts
13
11
Non-utility property, accumulated depreciation
122
95
Intangible assets, accumulated amortization
5
4
CECONY
Accounts receivable - customers, allowance for uncollectible accounts
70
80
Other receivables, allowance for uncollectible accounts
12
11
Non-utility property, accumulated depreciation
$ 25
$ 25
9 Months Ended
General
CECONY
General
9 Months Ended
Summary of Significant Accounting Policies
CECONY
Summary of Significant Accounting Policies
9 Months Ended
Public Utilities, General Disclosures [Line Items]
Regulatory Matters
Yr. 2 - $155 million
Yr. 3 - $155 million
Yr. 2 - $83 million
Yr. 3 - $69 million
Potential earnings adjustment mechanism incentives for energy efficiency and other potential incentives of up to: Yr. 1 - $28 million; Yr. 2 - $47 million; and Yr. 3 - $64 million.
Electric average net plant target excluding advanced metering infrastructure (AMI): Yr. 1 - $21,689 million; Yr. 2 - $22,338 million; Yr. 3 - $23,002 million
AMI: Yr. 1 - $126 million; Yr. 2 - $257 million; Yr. 3 - $415 million
Yr. 2 - $19,530 million
Yr. 3 - $20,277 million
Yr. 2 - 6.80 percent
Yr. 3 - 6.73 percent
Yr. 2 - 4.88 percent
Yr. 3 - 4.74 percent
Yr. 2 - $92 million
Yr. 3 - $90 million
Yr. 2 - $37 million
Yr. 3 - $36 million
Potential incentives if performance targets related to gas leak backlog, leak prone pipe and service terminations are met: Yr. 1 - $7 million; Yr. 2 - $8 million; and Yr. 3 - $8 million.
Gas average net plant target excluding AMI: Yr. 1 - $5,844 million; Yr. 2 - $6,512 million; Yr. 3 - $7,177 million
AMI: Yr. 1 - $27 million; Yr. 2 - $57 million; Yr. 3 - $100 million
Yr. 2 - $5,395 million
Yr. 3 - $6,005 million
Yr. 2 - 6.80 percent
Yr. 3 - 6.73 percent
Yr. 2 - 4.88 percent
Yr. 3 - 4.74 percent
CECONY
Public Utilities, General Disclosures [Line Items]
Regulatory Matters
Yr. 2 - $155 million
Yr. 3 - $155 million
Yr. 2 - $83 million
Yr. 3 - $69 million
Potential earnings adjustment mechanism incentives for energy efficiency and other potential incentives of up to: Yr. 1 - $28 million; Yr. 2 - $47 million; and Yr. 3 - $64 million.
Electric average net plant target excluding advanced metering infrastructure (AMI): Yr. 1 - $21,689 million; Yr. 2 - $22,338 million; Yr. 3 - $23,002 million
AMI: Yr. 1 - $126 million; Yr. 2 - $257 million; Yr. 3 - $415 million
Yr. 2 - $19,530 million
Yr. 3 - $20,277 million
Yr. 2 - 6.80 percent
Yr. 3 - 6.73 percent
Yr. 2 - 4.88 percent
Yr. 3 - 4.74 percent
Yr. 2 - $92 million
Yr. 3 - $90 million
Yr. 2 - $37 million
Yr. 3 - $36 million
Potential incentives if performance targets related to gas leak backlog, leak prone pipe and service terminations are met: Yr. 1 - $7 million; Yr. 2 - $8 million; and Yr. 3 - $8 million.
Gas average net plant target excluding AMI: Yr. 1 - $5,844 million; Yr. 2 - $6,512 million; Yr. 3 - $7,177 million
AMI: Yr. 1 - $27 million; Yr. 2 - $57 million; Yr. 3 - $100 million
Yr. 2 - $5,395 million
Yr. 3 - $6,005 million
Yr. 2 - 6.80 percent
Yr. 3 - 6.73 percent
Yr. 2 - 4.88 percent
Yr. 3 - 4.74 percent
9 Months Ended
Debt Instrument [Line Items]
Capitalization
CECONY
Debt Instrument [Line Items]
Capitalization
9 Months Ended
Short-Term Borrowing
CECONY
Short-Term Borrowing
9 Months Ended
Defined Benefit Plan Disclosure [Line Items]
Pension Benefits
CECONY
Defined Benefit Plan Disclosure [Line Items]
Pension Benefits
9 Months Ended
Defined Benefit Plan Disclosure [Line Items]
Other Postretirement Benefits
CECONY
Defined Benefit Plan Disclosure [Line Items]
Other Postretirement Benefits
9 Months Ended
Site Contingency [Line Items]
Environmental Matters
CECONY
Site Contingency [Line Items]
Environmental Matters
9 Months Ended
Guarantor Obligations [Line Items]
Other Material Contingencies
CECONY
Guarantor Obligations [Line Items]
Other Material Contingencies
9 Months Ended
Income Tax Examination [Line Items]
Income Tax
CECONY
Income Tax Examination [Line Items]
Income Tax
9 Months Ended
Segment Reporting Information [Line Items]
Financial Information by Business Segment
CECONY
Segment Reporting Information [Line Items]
Financial Information by Business Segment
9 Months Ended
Derivative [Line Items]
Derivative Instruments and Hedging Activities
CECONY
Derivative [Line Items]
Derivative Instruments and Hedging Activities
9 Months Ended
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Measurements
CECONY
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Measurements
9 Months Ended
Schedule of Equity Method Investments [Line Items]
Variable Interest Entities
CECONY
Schedule of Equity Method Investments [Line Items]
Variable Interest Entities
9 Months Ended
Related Party Transactions
CECONY
Related Party Transactions
9 Months Ended
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
New Financial Accounting Standards
CECONY
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
New Financial Accounting Standards
9 Months Ended
Equity Method Investments and Joint Ventures [Abstract]
Acquisitions, Investments and Dispositions
9 Months Ended
Accounting Policies [Abstract]
New Financial Accounting Standards
9 Months Ended
Accounting Policies [Abstract]
Earnings Per Common Share
Changes in Accumulated Other Comprehensive Income/(Loss) by Component
9 Months Ended
Regulated Operations [Abstract]
Summary of Rate Plan
Yr. 2 - $155 million
Yr. 3 - $155 million
Yr. 2 - $83 million
Yr. 3 - $69 million
Potential earnings adjustment mechanism incentives for energy efficiency and other potential incentives of up to: Yr. 1 - $28 million; Yr. 2 - $47 million; and Yr. 3 - $64 million.
Electric average net plant target excluding advanced metering infrastructure (AMI): Yr. 1 - $21,689 million; Yr. 2 - $22,338 million; Yr. 3 - $23,002 million
AMI: Yr. 1 - $126 million; Yr. 2 - $257 million; Yr. 3 - $415 million
Yr. 2 - $19,530 million
Yr. 3 - $20,277 million
Yr. 2 - 6.80 percent
Yr. 3 - 6.73 percent
Yr. 2 - 4.88 percent
Yr. 3 - 4.74 percent
Yr. 2 - $92 million
Yr. 3 - $90 million
Yr. 2 - $37 million
Yr. 3 - $36 million
Potential incentives if performance targets related to gas leak backlog, leak prone pipe and service terminations are met: Yr. 1 - $7 million; Yr. 2 - $8 million; and Yr. 3 - $8 million.
Gas average net plant target excluding AMI: Yr. 1 - $5,844 million; Yr. 2 - $6,512 million; Yr. 3 - $7,177 million
AMI: Yr. 1 - $27 million; Yr. 2 - $57 million; Yr. 3 - $100 million
Yr. 2 - $5,395 million
Yr. 3 - $6,005 million
Yr. 2 - 6.80 percent
Yr. 3 - 6.73 percent
Yr. 2 - 4.88 percent
Yr. 3 - 4.74 percent
Regulatory Assets and Liabilities
9 Months Ended
Debt Disclosure [Abstract]
Carrying Amounts and Fair Values of Long-Term Debt
9 Months Ended
Pension Benefits
Total Periodic Benefit Costs
9 Months Ended
Other Postretirement Benefits
Defined Benefit Plan Disclosure [Line Items]
Total Periodic Benefit Costs
9 Months Ended
Environmental Remediation Obligations [Abstract]
Accrued Liabilities and Regulatory Assets
Environmental Remediation Costs
Accrued Liability for Asbestos Suits and Workers' Compensation Proceedings
9 Months Ended
Commitments and Contingencies Disclosure [Abstract]
Total Guarantees
9 Months Ended
Segment Reporting [Abstract]
Financial Data for Business Segments
9 Months Ended
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Fair Values of Commodity Derivatives Including Offsetting Assets
Fair Values of Commodity Derivatives Including Offsetting Liabilities
Realized and Unrealized Gains or Losses on Commodity Derivatives
Hedged Volume of Derivative Transactions
Aggregate Fair Value of Companies' Derivative Instruments with Credit-Risk-Related Contingent Features
9 Months Ended
Fair Value Disclosures [Abstract]
Assets and Liabilities Measured at Fair Value on Recurring Basis
Schedule of Commodity Derivatives
Reconciliation of Beginning and Ending Net Balances for Assets and Liabilities Measured at Level 3 Fair Value
9 Months Ended
Equity Method Investments and Joint Ventures [Abstract]
Summary of VIEs
9 Months Ended
Accounting Policies [Abstract]
Number of registrants | registrant
2
Number of regulated utility subsidiaries | subsidiary
2
$ / shares in Units, shares in Millions, $ in Millions3 Months Ended
9 Months Ended
Accounting Policies [Abstract]
Net income
$ 497
$ 232
$ 310
$ 428
$ 219
$ 370
$ 1,039
$ 1,017
Weighted average common shares outstanding – basic
304.5
292.9
299.1
292.9
Add: Incremental shares attributable to effect of potentially dilutive securities
1.4
1.3
1.4
1.3
Adjusted weighted average common shares outstanding – diluted
305.9
294.2
300.5
294.2
Net income per common share-basic (dollars per share)
$ 1.63
$ 1.46
$ 3.47
$ 3.47
Net income per common share-diluted (dollars per share)
$ 1.62
$ 1.45
$ 3.46
$ 3.46
$ in Millions
Debt Instrument [Line Items]
Carrying Amount
$ 14,093
$ 12,745
Fair Value
16,325
13,856
CECONY
Debt Instrument [Line Items]
Carrying Amount
11,584
11,437
Fair Value
$ 13,564
$ 12,427
9 Months Ended
12 Months Ended
Short-term Debt [Line Items]
Commercial paper, outstanding
$ 601,000,000
$ 1,529,000,000
Weighted average interest rate (percent)
0.70%
0.70%
Loans outstanding under credit agreement
$ 0
$ 0
Letters of credit outstanding under the Credit Agreement
2,000,000
15,000,000
CECONY
Short-term Debt [Line Items]
Commercial paper, outstanding
$ 480,000,000
$ 1,033,000,000
Weighted average interest rate (percent)
0.70%
0.70%
Loans outstanding under credit agreement
$ 0
$ 0
Letters of credit outstanding under the Credit Agreement
$ 2,000,000
$ in Millions9 Months Ended
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Expected contributions
$ 508
Contributions
504
CECONY | Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Expected contributions
469
Contributions
466
CECONY | Non-qualified Supplemental Plan
Defined Benefit Plan Disclosure [Line Items]
Expected contributions
$ 17
$ in Millions9 Months Ended
Other Postretirement Benefits
Defined Benefit Plan Disclosure [Line Items]
Expected contributions
$ 6
$ in Millions
Accrued Liabilities:
Accrued Liabilities
$ 752
$ 765
Regulatory assets
7,663
8,228
Manufactured gas plant sites
Accrued Liabilities:
Accrued Liabilities
664
679
Other Superfund Sites
Accrued Liabilities:
Accrued Liabilities
88
86
Superfund Sites
Accrued Liabilities:
Accrued Liabilities
752
765
Regulatory assets
823
904
CECONY
Accrued Liabilities:
Accrued Liabilities
661
665
Regulatory assets
7,097
7,603
CECONY | Manufactured gas plant sites
Accrued Liabilities:
Accrued Liabilities
574
579
CECONY | Other Superfund Sites
Accrued Liabilities:
Accrued Liabilities
87
86
CECONY | Superfund Sites
Accrued Liabilities:
Accrued Liabilities
661
665
Regulatory assets
$ 720
$ 800
$ in Millions3 Months Ended
9 Months Ended
Environmental Exit Cost [Line Items]
Remediation costs incurred
$ 8
$ 6
$ 20
$ 21
CECONY
Environmental Exit Cost [Line Items]
Remediation costs incurred
$ 5
$ 6
$ 10
$ 18
3 Months Ended
9 Months Ended
Site Contingency [Line Items]
Insurance recoveries
$ 1,000,000
$ 0
$ 1,000,000
$ 0
Manufactured gas plant sites | Maximum
Site Contingency [Line Items]
Estimated aggregate undiscounted potential liability related environmental contaminants (up to)
$ 2,800,000,000
CECONY
Site Contingency [Line Items]
Insurance recoveries
$ 1,000,000
$ 0
$ 1,000,000
$ 0
CECONY | Manufactured gas plant sites | Maximum
Site Contingency [Line Items]
Estimated aggregate undiscounted potential liability related environmental contaminants (up to)
$ 2,700,000,000
Asbestos Related
Site Contingency [Line Items]
Estimated undiscounted asbestos liability (years)
15 years
Asbestos Related | CECONY
Site Contingency [Line Items]
Estimated undiscounted asbestos liability (years)
15 years
$ in Millions
Site Contingency [Line Items]
Regulatory assets
$ 7,663
$ 8,228
Asbestos Suits
Site Contingency [Line Items]
Accrued liability
8
8
Regulatory assets
8
8
Workers’ compensation
Site Contingency [Line Items]
Accrued liability
90
86
Regulatory assets
15
11
CECONY
Site Contingency [Line Items]
Regulatory assets
7,097
7,603
CECONY | Asbestos Suits
Site Contingency [Line Items]
Accrued liability
7
7
Regulatory assets
7
7
CECONY | Workers’ compensation
Site Contingency [Line Items]
Accrued liability
85
81
Regulatory assets
$ 15
$ 11
9 Months Ended
Electric Energy Derivative
Derivatives, Fair Value [Line Items]
Electric Energy (MWH) | MWh
22,797,395
Electric Capacity Derivative
Derivatives, Fair Value [Line Items]
Capacity (MW) | MW
15,472
Natural Gas Derivative
Derivatives, Fair Value [Line Items]
Natural Gas (Dt) | DTH
69,954,738
Refined Fuels
Derivatives, Fair Value [Line Items]
Refined fuel (gallons) | gal
1,344,000
CECONY | Electric Energy Derivative
Derivatives, Fair Value [Line Items]
Electric Energy (MWH) | MWh
20,724,225
CECONY | Electric Capacity Derivative
Derivatives, Fair Value [Line Items]
Capacity (MW) | MW
9,000
CECONY | Natural Gas Derivative
Derivatives, Fair Value [Line Items]
Natural Gas (Dt) | DTH
70,100,000
CECONY | Refined Fuels
Derivatives, Fair Value [Line Items]
Refined fuel (gallons) | gal
1,344,000
$ in Millions9 Months Ended
Investment Holdings [Line Items]
Energy supply and hedging activities credit exposure total
$ 141
Makeup of net credit exposure with commodity exchange brokers
20
Makeup of net credit exposure independent system operators
77
Makeup of net credit exposure with investment-grade counterparties
34
Makeup of net credit exposure non-investment grade/non-rated counterparties
10
CECONY
Investment Holdings [Line Items]
Energy supply and hedging activities credit exposure total
13
Makeup of net credit exposure with commodity exchange brokers
12
Makeup of net credit exposure with investment-grade counterparties
$ 1
$ in Millions3 Months Ended
9 Months Ended
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance
$ 5
$ 13
$ 6
$ 20
Included in earnings
(4)
(4)
(1)
(18)
Included in regulatory assets and liabilities
(5)
(1)
(11)
(1)
Purchases
0
1
2
9
Sales
4
0
4
0
Settlements
1
(5)
1
(6)
Ending balance
1
4
1
4
CECONY
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance
2
11
8
13
Included in earnings
0
(1)
(1)
(5)
Included in regulatory assets and liabilities
(3)
(1)
(6)
(1)
Purchases
0
1
1
5
Sales
0
0
0
0
Settlements
1
(2)
(2)
(4)
Ending balance
$ 0
$ 8
$ 0
$ 8
$ in Millions3 Months Ended
9 Months Ended
Purchased power expense
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair value, assets measured on recurring basis, change in unrealized gain (loss)
$ (4)
$ (3)
$ (2)
$ (8)
Competitive energy businesses
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Gain (loss) on Level 3 energy derivative liabilities
$ (5)
$ (3)
$ (6)
$ (12)
12 Months Ended
Variable Interest Entity [Line Items]
Number of potential VIEs, long-term electricity purchase agreements | entity
2
Number of counterparties | counterparty
2
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