Regulatory Matters (Tables)

9 Months Ended

Sep. 30, 2017

Regulated Operations [Abstract]

Summary of Utilities Rate Plans

The following table contains a summary of the electric rate plan.

RECO
Effective period	March 2017 (a)
Base rate changes	Yr. 1 - $1.7 million
Amortization to income of net regulatory (assets) and liabilities	$0.2 million over three years and continuation of $(25.6) million of deferred storm costs over four years expiring July 31, 2018 (b)
Recoverable energy costs	Current rate recovery of purchased power costs.
Cost reconciliations	None
Average rate base	Yr. 1 - $178.7 million
Weighted average cost of capital (after-tax)	7.47 percent
Authorized return on common equity	9.6 percent
Cost of long-term debt	5.37 percent
Common equity ratio	49.7 percent

(a) Effective until a new rate plan approved by the NJBPU goes into effect.

(b) In January 2016, the NJBPU approved RECO’s plan to spend $15.7 million in capital over three years to harden its electric system against storms, the costs of which RECO, beginning in 2017, is collecting through a customer surcharge.

Schedule of Regulatory Assets

Regulatory assets and liabilities at September 30, 2017 and December 31, 2016 were comprised of the following items:

	Con Edison		CECONY
(Millions of Dollars)	2017	2016	2017	2016
Regulatory assets
Unrecognized pension and other postretirement costs	$2,626	$2,874	$2,476	$2,730
Future income tax	2,419	2,439	2,308	2,325
Environmental remediation costs	803	823	690	711
Revenue taxes	341	295	325	280
Deferred derivative losses	88	48	78	42
Pension and other postretirement benefits deferrals	70	38	45	7
Municipal infrastructure support costs	57	44	57	44
Deferred storm costs	43	56	—	3
Unamortized loss on reacquired debt	39	43	37	41
Indian Point Energy Center program costs	32	50	32	50
O&R property tax reconciliation	29	37	—	—
Brooklyn Queens demand management program	28	29	28	29
Preferred stock redemption	24	25	24	25
Surcharge for New York State assessment	18	28	16	26
Net electric deferrals	13	24	13	24
Workers’ compensation	12	13	12	13
O&R transition bond charges	10	15	—	—
Recoverable energy costs	4	42	4	38
Other	113	101	103	85
Regulatory assets – noncurrent	6,769	7,024	6,248	6,473
Deferred derivative losses	81	91	75	86
Recoverable energy costs	28	9	25	4
Regulatory assets – current	109	100	100	90
Total Regulatory Assets	$6,878	$7,124	$6,348	$6,563
Regulatory liabilities
Allowance for cost of removal less salvage	$798	$755	$671	$641
Pension and other postretirement benefit deferrals	202	193	174	162
Net unbilled revenue deferrals	166	145	166	145
Property tax reconciliation	140	178	140	178
Unrecognized other postretirement costs	84	60	84	60
Settlement of prudence proceeding	73	95	73	95
Carrying charges on repair allowance and bonus depreciation	49	68	48	67
New York State income tax rate change	48	61	48	60
Variable-rate tax-exempt debt – cost rate reconciliation	36	55	32	48
Property tax refunds	28	1	28	1
Settlement of gas proceedings	27	27	27	27
Base rate change deferrals	26	40	26	40
Earnings sharing - electric, gas and steam	24	39	15	28
Net utility plant reconciliations	11	16	8	15
Other	161	172	133	145
Regulatory liabilities – noncurrent	1,873	1,905	1,673	1,712
Refundable energy costs	29	29	9	5
Revenue decoupling mechanism	27	71	27	61
Deferred derivative gains	2	28	2	24
Regulatory liabilities – current	58	128	38	90
Total Regulatory Liabilities	$1,931	$2,033	$1,711	$1,802

Schedule of Regulatory Liabilities

Regulatory assets and liabilities at September 30, 2017 and December 31, 2016 were comprised of the following items:

	Con Edison		CECONY
(Millions of Dollars)	2017	2016	2017	2016
Regulatory assets
Unrecognized pension and other postretirement costs	$2,626	$2,874	$2,476	$2,730
Future income tax	2,419	2,439	2,308	2,325
Environmental remediation costs	803	823	690	711
Revenue taxes	341	295	325	280
Deferred derivative losses	88	48	78	42
Pension and other postretirement benefits deferrals	70	38	45	7
Municipal infrastructure support costs	57	44	57	44
Deferred storm costs	43	56	—	3
Unamortized loss on reacquired debt	39	43	37	41
Indian Point Energy Center program costs	32	50	32	50
O&R property tax reconciliation	29	37	—	—
Brooklyn Queens demand management program	28	29	28	29
Preferred stock redemption	24	25	24	25
Surcharge for New York State assessment	18	28	16	26
Net electric deferrals	13	24	13	24
Workers’ compensation	12	13	12	13
O&R transition bond charges	10	15	—	—
Recoverable energy costs	4	42	4	38
Other	113	101	103	85
Regulatory assets – noncurrent	6,769	7,024	6,248	6,473
Deferred derivative losses	81	91	75	86
Recoverable energy costs	28	9	25	4
Regulatory assets – current	109	100	100	90
Total Regulatory Assets	$6,878	$7,124	$6,348	$6,563
Regulatory liabilities
Allowance for cost of removal less salvage	$798	$755	$671	$641
Pension and other postretirement benefit deferrals	202	193	174	162
Net unbilled revenue deferrals	166	145	166	145
Property tax reconciliation	140	178	140	178
Unrecognized other postretirement costs	84	60	84	60
Settlement of prudence proceeding	73	95	73	95
Carrying charges on repair allowance and bonus depreciation	49	68	48	67
New York State income tax rate change	48	61	48	60
Variable-rate tax-exempt debt – cost rate reconciliation	36	55	32	48
Property tax refunds	28	1	28	1
Settlement of gas proceedings	27	27	27	27
Base rate change deferrals	26	40	26	40
Earnings sharing - electric, gas and steam	24	39	15	28
Net utility plant reconciliations	11	16	8	15
Other	161	172	133	145
Regulatory liabilities – noncurrent	1,873	1,905	1,673	1,712
Refundable energy costs	29	29	9	5
Revenue decoupling mechanism	27	71	27	61
Deferred derivative gains	2	28	2	24
Regulatory liabilities – current	58	128	38	90
Total Regulatory Liabilities	$1,931	$2,033	$1,711	$1,802