Other Postretirement Benefits (Tables) - Other Postretirement Benefits

12 Months Ended

Dec. 31, 2016

Defined Benefit Plan Disclosure [Line Items]

The components of the Companies’ total periodic postretirement benefit costs for 2016, 2015 and 2014 were as follows:



	Con Edison			CECONY
(Millions of Dollars)	2016	2015	2014	2016	2015	2014
Service cost	$18	$20	$19	$13	$15	$15
Interest cost on accumulated other postretirement benefit obligation	48	51	60	40	43	52
Expected return on plan assets	(77)	(78)	(77)	(67)	(68)	(68)
Recognition of net actuarial loss	5	31	57	3	28	51
Recognition of prior service cost	(20)	(20)	(19)	(14)	(14)	(15)
TOTAL PERIODIC POSTRETIREMENT BENEFIT COST	$(26)	$4	$40	$(25)	$4	$35
Cost capitalized	11	(2)	(15)	10	(2)	(14)
Reconciliation to rate level	22	14	10	22	6	2
Cost charged to operating expenses	$7	$16	$35	$7	$8	$23

Schedule of Funded Status

The funded status of the programs at December 31, 2016, 2015 and 2014 were as follows:



	Con Edison			CECONY
(Millions of Dollars)	2016	2015	2014	2016	2015	2014
CHANGE IN BENEFIT OBLIGATION
Benefit obligation at beginning of year	$1,287	$1,411	$1,395	$1,093	$1,203	$1,198
Service cost	18	20	19	13	15	15
Interest cost on accumulated postretirement benefit obligation	48	51	60	40	43	52
Amendments	—	—	(12)	—	—	—
Net actuarial loss/(gain)	(57)	(103)	47	(52)	(85)	28
Benefits paid and administrative expenses	(134)	(127)	(134)	(122)	(117)	(125)
Participant contributions	36	35	36	35	34	35
BENEFIT OBLIGATION AT END OF YEAR	$1,198	$1,287	$1,411	$1,007	$1,093	$1,203
CHANGE IN PLAN ASSETS
Fair value of plan assets at beginning of year	$994	$1,084	$1,113	$870	$950	$977
Actual return on plan assets	60	(6)	59	52	(4)	54
Employer contributions	7	6	7	7	6	7
EGWP payments	35	28	12	33	26	11
Participant contributions	36	35	36	35	34	35
Benefits paid	(157)	(153)	(143)	(146)	(142)	(134)
FAIR VALUE OF PLAN ASSETS AT END OF YEAR	$975	$994	$1,084	$851	$870	$950
FUNDED STATUS	$(223)	$(293)	$(327)	$(156)	$(223)	$(253)
Unrecognized net loss/(gain)	$(24)	$28	$78	$(42)	$4	$45
Unrecognized prior service costs	(31)	(51)	(71)	(18)	(32)	(46)

Schedule of Actuarial Assumptions

The actuarial assumptions were as follows:



	2016		2015		2014
Weighted-average assumptions used to determine benefit obligations at December 31:
Discount Rate
CECONY	4.00	%	4.05	%	3.75	%
O&R	4.20	%	4.20	%	3.85	%
Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31:
Discount Rate
CECONY	4.05	%	3.75	%	4.50	%
O&R	4.20	%	3.85	%	4.75	%
Expected Return on Plan Assets	7.00	%	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	$(4)	$26	$(24)	$41
Effect on service cost and interest cost components for 2016	1	—	(1)	1

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)	2017	2018	2019	2020	2021	2022-2026
Con Edison	$86	$85	$83	$80	$78	$375
CECONY	77	75	73	70	68	322

Schedule of Plan Assets Allocations

The asset allocations for CECONY’s other postretirement benefit plans at the end of 2016, 2015 and 2014, and the target allocation for 2017 are as follows:



	Target Allocation Range	Plan Assets at December 31,
Asset Category	2017	2016		2015		2014
Equity Securities	57%-73%	60	%	59	%	59	%
Debt Securities	26%-44%	40	%	41	%	41	%
Total	100%	100	%	100	%	100	%

Schedule of Fair Value of Plan Assets

The fair values of the plan assets at December 31, 2016 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	Total
Equity (a)		$—	$391	$391
Other Fixed Income Debt (b)	—		250	250
Cash and Cash Equivalents (c)	—		13	13
Total investments		$—	$654	$654
Funds for retiree health benefits (d)	165		105	270
Investments (including funds for retiree health benefits)	$165		$759	$924
Funds for retiree health benefits measured at net asset value (d)(e)				37
Pending activities (f)				14
Total fair value of plan net assets				$975


(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)	In accordance with ASU 2015-07, certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. See Note E.


(f)	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, 2015 by asset category (see Note P) are as follows:



(Millions of Dollars)	Level 1		Level 2	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	282
Investments (including funds for retiree health benefits)	$162		$780	$942
Funds for retiree health benefits measured at net asset value (d)(e)				43
Pending activities (f)				9
Total fair value of plan net assets				$994

(a) - (f) Reference is made to footnotes (a) through (f) in the above table of other postretirement benefit plan assets at December 31, 2016 by asset category.