Other Postretirement Benefits (Tables) - Other Postretirement Benefits

12 Months Ended

Dec. 31, 2015

Defined Benefit Plan Disclosure [Line Items]

The components of the Companies’ total periodic postretirement benefit costs for 2015, 2014 and 2013 were as follows:



	Con Edison			CECONY
(Millions of Dollars)	2015	2014	2013	2015	2014	2013
Service cost	$20	$19	$23	$15	$15	$18
Interest cost on accumulated other postretirement benefit obligation	51	60	54	43	52	46
Expected return on plan assets	(78)	(77)	(77)	(68)	(68)	(68)
Recognition of net actuarial loss	31	57	65	28	51	57
Recognition of prior service cost	(20)	(19)	(27)	(14)	(15)	(23)
TOTAL PERIODIC POSTRETIREMENT BENEFIT COST	$4	$40	$38	$4	$35	$30
Cost capitalized	(2)	(15)	(15)	(2)	(14)	(12)
Reconciliation to rate level	14	10	58	6	2	50
Cost charged to operating expenses	$16	$35	$81	$8	$23	$68

Schedule of Funded Status

The funded status of the programs at December 31, 2015, 2014 and 2013 were as follows:



	Con Edison			CECONY
(Millions of Dollars)	2015	2014	2013	2015	2014	2013
CHANGE IN BENEFIT OBLIGATION
Benefit obligation at beginning of year	$1,411	$1,395	$1,454	$1,203	$1,198	$1,238
Service cost	20	19	23	15	15	18
Interest cost on accumulated postretirement benefit obligation	51	60	54	43	52	46
Amendments	—	(12)	—	—	—	—
Net actuarial loss/(gain)	(103)	47	(42)	(85)	28	(20)
Benefits paid and administrative expenses	(127)	(134)	(136)	(117)	(125)	(126)
Participant contributions	35	36	38	34	35	38
Medicare prescription subsidy	—	—	4	—	—	4
BENEFIT OBLIGATION AT END OF YEAR	$1,287	$1,411	$1,395	$1,093	$1,203	$1,198
CHANGE IN PLAN ASSETS
Fair value of plan assets at beginning of year	$1,084	$1,113	$1,047	$950	$977	$922
Actual return on plan assets	(6)	59	153	(4)	54	134
Employer contributions	6	7	9	6	7	9
EGWP payments	28	12	8	26	11	7
Participant contributions	35	36	38	34	35	38
Benefits paid	(153)	(143)	(142)	(142)	(134)	(133)
FAIR VALUE OF PLAN ASSETS AT END OF YEAR	$994	$1,084	$1,113	$870	$950	$977
FUNDED STATUS	$(293)	$(327)	$(282)	$(223)	$(253)	$(221)
Unrecognized net loss	$28	$78	$70	$4	$45	$54
Unrecognized prior service costs	(51)	(71)	(78)	(32)	(46)	(61)

Schedule of Actuarial Assumptions

The actuarial assumptions were as follows:



	2015		2014		2013
Weighted-average assumptions used to determine benefit obligations at December 31:
Discount Rate
CECONY	4.05	%	3.75	%	4.50	%
O&R	4.20	%	3.85	%	4.75	%
Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31:
Discount Rate
CECONY	3.75	%	4.50	%	3.75	%
O&R	3.85	%	4.75	%	4.05	%
Expected Return on Plan Assets	7.75	%	7.75	%	7.75	%

Schedule of Change of Assumed Health Care Cost Trend Rate

A one-percentage point change in the assumed health care cost trend rate would have the following effects at December 31, 2016:



	Con Edison		CECONY
	1-Percentage-Point
(Millions of Dollars)	Increase	Decrease	Increase	Decrease
Effect on accumulated other postretirement benefit obligation	$(18)	$41	$(37)	$56
Effect on service cost and interest cost components for 2015	(1)	1	(3)	2

Schedule of Expected Benefit Payments

Based on current assumptions, the Companies expect to make the following benefit payments over the next ten years, net of receipt of governmental subsidies:



(Millions of Dollars)	2016	2017	2018	2019	2020	2021-2025
Con Edison	$95	$93	$91	$88	$85	$403
CECONY	85	83	81	78	75	348

Schedule of Plan Assets Allocations

The asset allocations for CECONY’s other postretirement benefit plans at the end of 2015, 2014 and 2013, and the target allocation for 2016 are as follows:



	Target Allocation Range	Plan Assets at December 31,
Asset Category	2016	2015		2014		2013
Equity Securities	57% - 73%	59	%	59	%	61	%
Debt Securities	26% - 44%	41	%	41	%	39	%
Total	100%	100	%	100	%	100	%

Schedule of Fair Values of Plan Assets

The fair values of the plan assets at December 31, 2015 by asset category as defined by the accounting rules for fair value measurements (see Note P) are as follows:



(Millions of Dollars)	Level 1		Level 2	Level 3		Total
Equity (a)		$—	$393		$—	$393
Other Fixed Income Debt (b)	—		260	—		260
Cash and Cash Equivalents (c)	—		7	—		7
Total investments		$—	$660		$—	$660
Funds for retiree health benefits (d)	162		120	43		325
Investments (including funds for retiree health benefits)	$162		$780	$43		$985
Pending activities (e)						9
Total fair value of plan net assets						$994


(a)	Equity includes a passively managed commingled index fund benchmarked to the MSCI All Country World Index.


(b)	Other Fixed Income Debt includes a passively managed commingled index fund benchmarked to the Barclays Capital Aggregate Index.


(c)	Cash and Cash Equivalents include short term investments and money markets.

(d)

The Companies set aside funds for retiree health benefits through a separate account within the pension trust, as permitted under Section 401(h) of the Internal Revenue Code of 1986, as amended. In accordance with the Code, the plan’s investments in the 401(h) account may not be used for, or diverted to, any purpose other than providing health benefits for retirees. The net assets held in the 401(h) account are calculated based on a pro-rata percentage allocation of the net assets in the pension plan. The related obligations for health benefits are not included in the pension plan’s obligations and are included in the Companies’ other postretirement benefit obligation. See Note E.


(e)	Pending activities include security purchases and sales that have not settled, interest and dividends that have not been received, and reflects adjustments for available estimates at year end.

The fair values of the plan assets at December 31, 2014 by asset category (see Note P) are as follows:



(Millions of Dollars)	Level 1		Level 2	Level 3		Total
Equity (a)		$—	$428		$—	$428
Other Fixed Income Debt (b)	—		286	—		286
Cash and Cash Equivalents (c)	—		11	—		11
Total investments		$—	$725		$—	$725
Funds for retiree health benefits (d)	184		131	43		358
Investments (including funds for retiree health benefits)	$184		$856	$43		$1,083
Pending activities (e)						1
Total fair value of plan net assets						$1,084


(a)	Equity includes a passively managed commingled index fund benchmarked to the MSCI All Country World Index.


(b)	Other Fixed Income Debt includes a passively managed commingled index fund benchmarked to the Barclays Capital Aggregate Index.


(c)	Cash and Cash Equivalents include short term investments and money markets.

(d)


(e)	Pending activities include security purchases and sales that have not settled, interest and dividends that have not been received, and reflects adjustments for available estimates at year end.

Reconciliation of Fair Value Balances for Net Assets

The table below provides a reconciliation of the beginning and ending net balances for assets at December 31, 2014 classified as Level 3 in the fair value hierarchy.



(Millions of Dollars)	Beginning Balance as of January 1, 2014		Assets Still Held at Reporting Date – Unrealized Gains/(Losses)		Assets Sold During the Year – Realized Gains/(Losses)		Purchases Sales and Settlements		Transfers In/(Out) of Level 3		Ending Balance as of December 31, 2014
Total investments		$—		$—		$—		$—		$—		$—
Funds for retiree health benefits	42		1		—		—		—		43
Investments (including funds for retiree health benefits)	$42		$1			$—		$—		$—	$43

The table below provides a reconciliation of the beginning and ending net balances for assets at December 31, 2015 classified as Level 3 in the fair value hierarchy.



(Millions of Dollars)	Beginning Balance as of January 1, 2015		Assets Still Held at Reporting Date – Unrealized Gains/(Losses)		Assets Sold During the Year – Realized Gains/(Losses)		Purchases Sales and Settlements		Transfers In/(Out) of Level 3		Ending Balance as of December 31, 2015
Total investments		$—		$—		$—		$—		$—		$—
Funds for retiree health benefits	43		—		—		—		—		43
Investments (including funds for retiree health benefits)	$43			$—		$—		$—		$—	$43