-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, EsGizqebmQewr9oQ8BMrdDuBfianoEL7KCUNAGPuQoJoWrXDzq6+Vyy8MpPrFRsk lze8YsHyciRYXbP/siTv5Q== 0001047469-03-024512.txt : 20030718 0001047469-03-024512.hdr.sgml : 20030718 20030718114503 ACCESSION NUMBER: 0001047469-03-024512 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20030717 ITEM INFORMATION: Other events ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030718 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CONSOLIDATED EDISON CO OF NEW YORK INC CENTRAL INDEX KEY: 0000023632 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC & OTHER SERVICES COMBINED [4931] IRS NUMBER: 135009340 STATE OF INCORPORATION: NY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-01217 FILM NUMBER: 03792544 BUSINESS ADDRESS: STREET 1: 4 IRVING PL CITY: NEW YORK STATE: NY ZIP: 10003 BUSINESS PHONE: 2124604600 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ORANGE & ROCKLAND UTILITIES INC CENTRAL INDEX KEY: 0000074778 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC & OTHER SERVICES COMBINED [4931] IRS NUMBER: 131727729 STATE OF INCORPORATION: NY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 333-38254 FILM NUMBER: 03792543 BUSINESS ADDRESS: STREET 1: ONE BLUE HILL PLZ CITY: PEARL RIVER STATE: NY ZIP: 10965 BUSINESS PHONE: 9143526000 MAIL ADDRESS: STREET 1: ONE BLUE HILL PLAZA CITY: PEARL RIVER STATE: NY ZIP: 10965 FORMER COMPANY: FORMER CONFORMED NAME: ROCKLAND LIGHT & POWER CO DATE OF NAME CHANGE: 19681202 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CONSOLIDATED EDISON INC CENTRAL INDEX KEY: 0001047862 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC & OTHER SERVICES COMBINED [4931] IRS NUMBER: 133965100 STATE OF INCORPORATION: NY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-14514 FILM NUMBER: 03792542 BUSINESS ADDRESS: STREET 1: 4 IRVING PLACE STREET 2: ROOM 1618 S CITY: NEW YORK STATE: NY ZIP: 10003 BUSINESS PHONE: 2124604600 MAIL ADDRESS: STREET 1: 4 IRVING PLACE STREET 2: ROOM 1618 S CITY: NEW YORK STATE: NY ZIP: 10003 8-K 1 a2114933z8-k.htm 8-K
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549



Form 8-K

Current Report

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

Date of Report: July 16, 2003

Commission
File Number

  Exact name of registrant as specified in its charter
and principal office address and telephone number

  State of
Incorporation

  I.R.S. Employer
ID. Number

1-14514   Consolidated Edison, Inc.
4 Irving Place, New York, New York 10003
(212) 460-4600
  New York   13-3965100

1-1217

 

Consolidated Edison Company of New York, Inc.
4 Irving Place, New York, New York 10003
(212) 460-4600

 

New York

 

13-5009340

1-4315

 

Orange and Rockland Utilities, Inc.
One Blue Hill Plaza, Pearl River New York 10965
(845) 352-6000

 

New York

 

13-1727729


INFORMATION TO BE INCLUDED IN THE REPORT

ITEM 5. OTHER EVENTS

Second Quarter Financial Results

        Consolidated Edison, Inc.'s unaudited net revenues (operating revenues less purchased power, fuel and gas purchased for resale), operating income and net income for common stock for the three months ended June 30, 2003 and 2002 were as follows:

 
  2003
  2002
 
  (Millions of Dollars)

Net revenues   $ 975   $ 981
Operating income   $ 164   $ 200
Net income for common stock   $ 66   $ 98

        The results for the three months ended June 30, 2003, as compared to the 2002 period, reflect lower electric deliveries related to cooler weather and a reduction in net credits for pension and other post-retirement benefits.

O&R New Jersey Electric Rate Decision

        On July 16, 2003, the New Jersey Board of Public Utilities (NJBPU) ruled upon the petitions of Rockland Electric Company (RECO), the New Jersey utility subsidiary of Orange and Rockland Utilities, Inc. (O&R), for an increase in electric rates and recovery of deferred purchased power costs. O&R is a wholly-owned subsidiary of Consolidated Edison, Inc. See "Rate and Restructuring Agreements—Electric" and "Recoverable Energy Costs" in Note A to the Con Edison and O&R financial statements in Part II, Item 8 of the combined Consolidated Edison, Inc., Consolidated Edison Company of New York, Inc. and O&R Annual Report on Form 10-K for the year ended December 31, 2002. The NJBPU ordered a $7.2 million decrease in RECO's electric base rates, effective August 2003, authorized RECO's recovery of approximately $83.4 million of previously deferred purchased power costs and associated interest and disallowed recovery of approximately $18.6 million of such costs and associated interest. The company at December 31, 2002, had accrued a reserve for most of the disallowance, and at June 30, 2003 was fully reserved for the disallowance. The NJBPU has not yet issued a written order on these rulings.

ITEM 9. REGULATION FD DISCLOSURE (INFORMATION IS BEING PROVIDED UNDER ITEM 12)

        On July 17, 2003, Consolidated Edison, Inc. issued the following press release:


Con Edison, Inc. Reports Second Quarter Earnings

Company Reaffirms 2003 Earnings Projection

        NEW YORK—Consolidated Edison, Inc. (NYSE: ED) today reported net income for common stock for the second quarter of 2003 of $66 million or 29 cents a share, compared with earnings of $98 million or 46 cents a share, for the second quarter of 2002. The company also declared a quarterly dividend of 56 cents a share on its common stock payable September 15, 2003 to stockholders of record as of August 13, 2003.

        "Our energy delivery systems continue to perform very well," said Eugene R. McGrath, Chairman and Chief Executive Officer. "Our earnings were impacted by the unseasonably cool spring weather.

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We see continued growth in demand for our services, and on June 26, we set a new all-time electric peak load for that month."

        The company's net income for common stock for the first six months of 2003 was $220 million or $1.01 a share, compared with $244 million or $1.14 a share for the first six months of 2002. Net income for the 2002 period includes a one-time goodwill impairment charge of $20 million after-tax, related to certain unregulated generating assets. Excluding this non-cash charge, net income for the first six months of 2002 was $264 million or $1.24 a share.

        The company's earnings for the second quarter of 2003 were negatively affected by lower electric deliveries related to the exceptionally cool weather. For the first six months of 2003, this reduction partially offset the positive impact of increased energy sales in the first quarter, as compared with the corresponding 2002 period, related to colder than normal winter weather. In addition, earnings for both 2003 periods were impacted by a reduction in net credits for pension and other post-retirement benefits as compared with 2002.

        For the three months ended June 30, 2003, amounts of electricity, gas and steam delivered by Con Edison of New York, after adjusting for variations in weather and billing days in the period increased 0.3 percent, 0.5 percent and 1.3 percent, respectively, as compared to the 2002 period.

        For the first six months of 2003, amounts of electricity, gas and steam delivered by Con Edison of New York, after adjusting for variations in weather and billing days in the period, increased 1.7 percent, 2.3 percent and 1.0 percent, respectively, as compared to the 2002 period.

        For the full year 2003, the company reaffirms its previous forecast of earnings in the range of $2.82 to $2.97 per share.

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        The following table represents an analysis of the major factors affecting earnings per share for the second quarter of 2003 compared with 2002:

2nd Quarter 2003 Compared With 2002

  Earnings Per
Share ($)

 
Con Edison of New York:        
  Impact of weather in 2003 on net revenues versus 2002 (estimated)   $ (0.06 )
  Sales growth from factors other than weather (estimated)     0.03  
  Reduced net credit for pensions & other post-retirement benefits     (0.08 )
  Higher depreciation and property tax expense     (0.03 )
  Other     (0.02 )
   
 
Total Con Edison of New York     (0.16 )
Orange & Rockland Utilities     (0.02 )
Unregulated subsidiaries and parent company     0.01  
   
 
Total   $ (0.17 )
   
 

        The following table represents an analysis of the major factors affecting earnings per share for year-to-date 2003 compared with 2002:

Year-to-Date 2003 Compared With 2002

  Earnings Per
Share ($)

 
Con Edison of New York:        
  Impact of weather in 2003 on net revenues versus 2002 (estimated)   $ 0.07  
  Sales growth from factors other than weather (estimated)     0.08  
  Reduced net credit for pensions & other post-retirement benefits     (0.15 )
  Regulatory accounting/amortizations     (0.07 )
  Higher depreciation and property tax expense     (0.06 )
  Amortization of divestiture gain in the first quarter of 2002     (0.06 )
  Other     (0.04 )
   
 
Total Con Edison of New York     (0.23 )
Orange & Rockland Utilities      
Unregulated subsidiaries and parent company      
Cumulative effect of change in accounting principle for goodwill impairment in 2002     0.10  
   
 
Total   $ (0.13 )
   
 

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        During the second quarter of 2003, the company issued 9,570,000 shares of common stock under a public offering, resulting in net proceeds of $378 million.

        The press release contains forward-looking statements of future expectations. Actual results might differ materially from those projected because of factors such as those identified in reports the company has filed with the Securities and Exchange Commission.

        Consolidated Edison, Inc. is one of the nation's largest investor-owned energy companies, with $9 billion in annual revenues and approximately $19 billion in assets. The company provides a wide range of energy-related products and services to its customers through its six subsidiaries: Consolidated Edison Company of New York, Inc., a regulated utility providing electric, gas, and steam service in New York City and Westchester County, New York; Orange and Rockland Utilities, Inc., a regulated utility serving customers in a 1,350 square mile area in southeastern New York state and adjacent sections of northern New Jersey and northeastern Pennsylvania; Con Edison Solutions, a retail energy services company; Con Edison Energy, a wholesale energy supply company; Con Edison Development, an infrastructure development company; and Con Edison Communications, a telecommunications infrastructure company and service provider.

5



CONSOLIDATED EDISON, INC.

CONSOLIDATED INCOME STATEMENT

FOR THE THREE MONTHS ENDED JUNE 30, 2003 AND 2002
(Unaudited)

 
  2003
  2002
 
 
  (Millions of Dollars)

 
Operating revenues              
  Electric   $ 1,561   $ 1,400  
  Gas     326     242  
  Steam     96     71  
  Non-utility     192     136  
   
 
 
    Total operating revenues     2,175     1,849  
   
 
 
Operating expenses              
  Purchased power     906     702  
  Fuel     102     47  
  Gas purchased for resale     192     119  
  Other operations     279     231  
  Maintenance     91     99  
  Depreciation and amortization     130     121  
  Taxes, other than income tax     270     269  
  Income tax     41     61  
   
 
 
    Total operating expenses     2,011     1,649  
   
 
 
Operating income     164     200  

Other income (deductions)

 

 

 

 

 

 

 
  Investment income     2      
  Allowance for equity funds used during construction     4     2  
  Other income     6     8  
  Other Income deductions     (5 )   (6 )
  Income tax     2     2  
   
 
 
    Total other income (deductions)     9     6  
   
 
 
Income before interest charges     173     206  

Interest on long-term debt

 

 

99

 

 

99

 
Other interest     8     8  
Allowance for borrowed funds used during construction     (3 )   (2 )
   
 
 
    Net interest charges     104     105  
   
 
 
Preferred stock dividend requirements     3     3  
   
 
 
Net income for common stock     66     98  
   
 
 
Earnings per common share—Basic   $ 0.29   $ 0.46  

Earnings per common share—Diluted

 

$

0.29

 

$

0.46

 

Average number of shares outstanding—Basic (in Millions)

 

 

219.3

 

 

212.8

 
Average number of shares outstanding—Diluted (in Millions)     220.3     213.9  

Consolidated Edison, Inc. utility sales

 

 

 

 

 

 

 
Electric (thousands of kilowatthours)              
  Total energy delivered in service areas     13,320,730     13,717,590  
Gas (dekatherms)              
  Firm sales and transportation     24,568,979     22,162,986  
  Off-system sales     339,201     2,666,228  
Steam (thousands of pounds)     4,435,485     4,481,538  

6



CONSOLIDATED EDISON, INC.

CONSOLIDATED INCOME STATEMENT

FOR THE SIX MONTHS ENDED JUNE 30, 2003 AND 2002
(Unaudited)

 
  2003
  2002
 
 
  (Millions of Dollars)

 
Operating revenues              
  Electric   $ 3,054   $ 2,701  
  Gas     946     716  
  Steam     334     212  
  Non-utility     412     276  
   
 
 
    Total operating revenues     4,746     3,905  
   
 
 
Operating expenses              
  Purchased power     1,770     1,370  
  Fuel     287     112  
  Gas purchased for resale     556     350  
  Other operations     575     468  
  Maintenance     184     198  
  Depreciation and amortization     259     243  
  Taxes, other than income tax     554     536  
  Income tax     141     170  
   
 
 
    Total operating expenses     4,326     3,447  
   
 
 
Operating income     420     458  

Other income (deductions)

 

 

 

 

 

 

 
  Investment income     2     1  
  Allowance for equity funds used during construction     6     6  
  Other income     12     15  
  Other Income deductions     (8 )   (15 )
  Income tax     3     16  
   
 
 
    Total other income (deductions)     15     23  
   
 
 
Income before interest charges     435     481  

Interest on long-term debt

 

 

198

 

 

193

 
Other interest     16     19  
Allowance for borrowed funds used during construction     (5 )   (2 )
   
 
 
    Net interest charges     209     210  
   
 
 
Preferred stock dividend requirements     6     7  
   
 
 
Net income before cumulative effect of a change in accounting principle     220     264  
Cumulative effect of a change in accounting principle (net of income tax of $14 million)         20  
   
 
 
Net income for common stock     220     244  
   
 
 
Earnings per common share—Basic              
Before cumulative effect of a change in accounting principle   $ 1.01   $ 1.24  
Cumulative effect of a change in accounting principle   $   $ 0.10  
After cumulative effect of a change in accounting principle   $ 1.01   $ 1.14  

Earnings per common share—Diluted

 

 

 

 

 

 

 
Before cumulative effect of a change in accounting principle   $ 1.01   $ 1.24  
Cumulative effect of a change in accounting principle   $   $ 0.10  
After cumulative effect of a change in accounting principle   $ 1.01   $ 1.14  

Average number of shares outstanding—Basic (in Millions)

 

 

217.1

 

 

212.5

 
Average number of shares outstanding—Diluted (in Millions)     218.0     213.7  

Consolidated Edison, Inc. utility sales

 

 

 

 

 

 

 
Electric (thousands of kilowatthours)              
  Total energy delivered in service areas     27,814,643     27,246,570  
Gas (dekatherms)              
  Firm sales and transportation     83,951,874     68,416,623  
  Off-system sales     597,640     8,969,853  
Steam (thousands of pounds)     15,107,574     12,417,347  

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SIGNATURE

        Pursuant to the requirements of the Securities Exchange Act of 1934, each registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


 

 

CONSOLIDATED EDISON, INC.

 

 

CONSOLIDATED EDISON COMPANY
OF NEW YORK, INC.

 

 

ORANGE AND ROCKLAND UTILITIES, INC.

 

 

By

/s/  
EDWARD J. RASMUSSEN      
Edward J. Rasmussen
Vice President and Controller

DATE: July 17, 2003

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QuickLinks

INFORMATION TO BE INCLUDED IN THE REPORT
Con Edison, Inc. Reports Second Quarter Earnings
Company Reaffirms 2003 Earnings Projection
CONSOLIDATED EDISON, INC. CONSOLIDATED INCOME STATEMENT FOR THE THREE MONTHS ENDED JUNE 30, 2003 AND 2002 (Unaudited)
CONSOLIDATED EDISON, INC. CONSOLIDATED INCOME STATEMENT FOR THE SIX MONTHS ENDED JUNE 30, 2003 AND 2002 (Unaudited)
SIGNATURE
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