Income Tax (Tables)

12 Months Ended

Dec. 31, 2020

The components of income tax are as follows:


	Con Edison			CECONY
(Millions of Dollars)	2020	2019	2018	2020	2019	2018
State
Current	$7	$(12)	$(10)	$6	$22	$6
Deferred	50	96	107	97	68	82
Federal
Current	(2)	—	3	41	185	(34)
Deferred	42	219	310	73	63	275
Amortization of investment tax credits	(7)	(7)	(9)	(2)	(3)	(3)
Total income tax expense	$90	$296	$401	$215	$335	$326

Schedule of Differences on Deferred Tax Assets and Liabilities

The tax effects of temporary differences, which gave rise to deferred tax assets and liabilities, are as follows:


	Con Edison		CECONY
(Millions of Dollars)	2020	2019	2020	2019
Deferred tax liabilities:
Property basis differences	$7,985	$7,699	$6,901	$6,640
Regulatory assets:
Unrecognized pension and other postretirement costs	910	712	861	674
Environmental remediation costs	243	205	222	181
Deferred storm costs	31	22	—	—
Other regulatory assets	536	376	508	355
Operating lease right-of-use asset	220	231	165	169
Equity investments	46	104	—	—
Total deferred tax liabilities	$9,971	$9,349	$8,657	$8,019
Deferred tax assets:
Accrued pension and other postretirement costs	$504	$291	$427	$222
Regulatory liabilities:
Future income tax	617	678	579	638
Other regulatory liabilities	656	702	570	622
Superfund and other environmental costs	241	206	219	183
Asset retirement obligations	178	135	143	102
Operating lease liabilities	211	231	165	170
Loss carryforwards	164	108	34	—
Tax credits carryforward	1,022	896	—	—
Valuation allowance	(22)	(31)	—	—
Other	59	47	127	103
Total deferred tax assets	3,630	3,263	2,264	2,040
Net deferred tax liabilities	$6,341	$6,086	$6,393	$5,979
Unamortized investment tax credits	134	141	18	21
Net deferred tax liabilities and unamortized investment tax credits	$6,475	$6,227	$6,411	$6,000

Schedule of Income Tax Reconciliation

Reconciliation of the difference between income tax expense and the amount computed by applying the prevailing statutory income tax rate to income before income taxes is as follows:


	Con Edison						CECONY
(% of Pre-tax income)	2020		2019		2018		2020		2019		2018
STATUTORY TAX RATE
Federal	21	%	21	%	21	%	21	%	21	%	21	%
Changes in computed taxes resulting from:
State income taxes, net of federal income tax benefit	4		4		4		5		5		5
Taxes attributable to noncontrolling interests	(1)		(1)		—		—		—		—
Cost of removal	2		1		1		1		1		1
Other plant-related items	(1)		(1)		(1)		(1)		(1)		(1)
TCJA deferred tax re-measurement	—		—		2		—		—		—
Amortization of excess deferred federal income taxes	(14)		(4)		(3)		(12)		(4)		(3)
Renewable energy credits	(3)		(2)		(1)		—		—		—
Research and development credits	—		(1)		—		—		(1)		(1)
Other	(1)		—		—		1		—		(1)
Effective tax rate	7	%	17	%	23	%	15	%	21	%	21	%

Summary of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amounts of unrecognized tax benefits for Con Edison and CECONY follows:


	Con Edison			CECONY
(Millions of Dollars)	2020	2019	2018	2020	2019	2018
Balance at January 1,	$13	$6	$12	$2	$4	$5
Additions based on tax positions related to the current year	—	1	2	—	1	2
Additions based on tax positions of prior years	1	10	1	1	—	1
Reductions for tax positions of prior years	—	(2)	(2)	—	(1)	(1)
Reductions from expiration of statute of limitations	—	—	(4)	—	—	—
Settlements	—	(2)	(3)	—	(2)	(3)
Balance at December 31,	$14	$13	$6	$3	$2	$4