Revenue Recognition

9 Months Ended

Sep. 30, 2023

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Revenue Recognition

The following table presents, for the three and nine months ended September 30, 2023 and 2022, revenue from contracts with customers as defined in Accounting Standards Codification Topic 606, "Revenue from Contracts with Customers," as well as additional revenue from sources other than contracts with customers, disaggregated by major source.

	For the Three Months Ended September 30, 2023			For the Three Months Ended September 30, 2022
(Millions of Dollars)	Revenues from contracts with customers	Other revenues (a)	Total operating revenues	Revenues from contracts with customers	Other revenues (a)	Total operating revenues
CECONY
Electric	$3,195	$28	$3,223	$3,165	$(88)	$3,077
Gas	338	(20)	318	409	5	414
Steam	46	3	49	55	3	58
Total CECONY	$3,579	$11	$3,590	$3,629	$(80)	$3,549
O&R
Electric	242	4	246	256	(4)	252
Gas	31	4	35	29	10	39
Total O&R	$273	$8	$281	$285	$6	$291
Clean Energy Businesses (c)
Renewables	—	—	—	197	—	197
Energy services	—	—	—	13	—	13
Develop/Transfer Projects	—	—	—	37	—	37
Other	—	—	—	—	78	78
Total Clean Energy Businesses	$—	$—	$—	$247	$78	$325
Con Edison Transmission	1	—	1	1	—	1
Other (b)	—	—	—	—	(1)	(1)
Total Con Edison	$3,853	$19	$3,872	$4,162	$3	$4,165

(a) For the Utilities, this includes primarily revenue or negative revenue adjustments from alternative revenue programs, such as the revenue decoupling mechanisms under their New York electric and gas rate plans (see "Rate Plans" in Note B). For the Clean Energy Businesses, this includes revenue from wholesale services. On March 1, 2023, Con Edison completed the sale of substantially all of the assets of the Clean Energy Businesses. See Note S and Note T.

(b)    Other includes the parent company, Con Edison's tax equity investments, the deferred project held for sale and consolidated adjustments. See Note T.

(c) On March 1, 2023, Con Edison completed the sale of substantially all of the assets of the Clean Energy Businesses. See Note S and Note T.

	For the Nine Months Ended September 30, 2023			For the Nine Months Ended September 30, 2022
(Millions of Dollars)	Revenues from contracts with customers	Other revenues (a)	Total operating revenues	Revenues from contracts with customers	Other revenues (a)	Total operating revenues
CECONY
Electric	$7,449	$273	$7,722	$7,525	$(124)	$7,401
Gas	2,117	23	2,140	2,090	37	2,127
Steam	414	11	425	436	8	444
Total CECONY	$9,980	$307	$10,287	$10,051	$(79)	$9,972
O&R
Electric	$574	$14	$588	$595	$(1)	$594
Gas	211	4	215	217	2	219
Total O&R	$785	$18	$803	$812	$1	$813
Clean Energy Businesses (c)
Renewables	$68	$—	$68	$524	$—	$524
Energy services	7	—	7	57	—	57
Develop/Transfer Projects	7	—	7	56	—	56
Other	—	47	47	—	220	220
Total Clean Energy Businesses	$82	$47	$129	$637	$220	$857
Con Edison Transmission	$3	$—	$3	$3	—	$3
Other (b)	—	(3)	(3)	—	(6)	(6)
Total Con Edison	$10,850	$369	$11,219	$11,503	$136	$11,639

(a) For the Utilities, this includes primarily revenue or negative revenue adjustments from alternative revenue programs, such as the revenue decoupling mechanisms under their New York electric and gas rate plans (see "Rate Plans" in Note B). For the Clean Energy Businesses, this includes revenue from wholesale services. On March 1, 2023, Con Edison completed the sale of substantially all of the assets of the Clean Energy Businesses. See Note S and Note T.

(b)    Other includes the parent company, Con Edison's tax equity investments, the deferred project held for sale and consolidated adjustments. See Note T.

(c) On March 1, 2023, Con Edison completed the sale of substantially all of the assets of the Clean Energy Businesses. See Note S and Note T.

Use of the Percentage-of-Completion Method

Sales and profits on each percentage-of-completion contract at the Clean Energy Businesses were recorded each month based on the ratio of actual cumulative costs incurred to the total estimated costs at completion of the contract, multiplied by the total estimated contract revenue, less cumulative revenues recognized in prior periods (the ‘‘cost-to-cost’’ method). The impact of revisions of contract estimates, that may result from contract modifications, performance or other reasons, were recognized on a cumulative catch-up basis in the period in which the revisions are made. On March 1, 2023, Con Edison completed the sale of substantially all of the assets of the Clean Energy Businesses. See Note S.

	2023				2022
(Millions of Dollars)	Unbilled contract revenue (a)		Unearned revenue (b)		Unbilled contract revenue (a)	Unearned revenue (b)
Beginning balance as of January 1,	$80		$3		$35	$7
Additions (c)	2		—		103	—
Subtractions (c)	78		3	(d)	81	4	(d)
Ending balance as of September 30,	$4	(e)	$—		$57	$3

(a)Unbilled contract revenue represents accumulated incurred costs and earned profits on contracts (revenue arrangements), that have been recorded as revenue, but have not yet been billed to customers, and which represent contract assets as defined in Topic 606. Substantially all accrued unbilled contract revenue is expected to be collected within one year. Unbilled contract revenue arises from the cost-to-cost method of revenue recognition. Unbilled contract revenue from fixed-price type contracts is converted to billed receivables when amounts

are invoiced to customers according to contractual billing terms, that generally occur when deliveries or other performance milestones are completed.

(b)Unearned revenue represents a liability for billings to customers in excess of earned revenue, that are contract liabilities as defined in Topic 606.

(c)Additions for unbilled contract revenue and subtractions for unearned revenue represent additional revenue earned. Additions for unearned revenue and subtractions for unbilled contract revenue represent billings. Activity also includes appropriate balance sheet classification for the period. Of the subtractions in 2023, $21 million and $1 million relate to the sale of the Clean Energy Businesses for unbilled contract revenue and unearned revenue, respectively. See (e) below.

(d)Of the subtractions from unearned revenue, $3 million and $4 million were included in the balances as of January 1, 2023 and 2022, respectively.

(e)Following the sale of the Clean Energy Businesses, Con Edison received substantially all contract revenue, net of certain costs incurred, for a battery storage project located in Imperial County, California. See Note S.