Pension Benefits

6 Months Ended

Jun. 30, 2019

Total Periodic Benefit Cost

The components of the Companies’ total periodic benefit cost for the three and six months ended June 30, 2019 and 2018 were as follows:



	For the Three Months Ended June 30,
	Con Edison		CECONY
(Millions of Dollars)	2019	2018	2019	2018
Service cost – including administrative expenses	$62	$72	$58	$68
Interest cost on projected benefit obligation	150	140	141	131
Expected return on plan assets	(247)	(258)	(234)	(245)
Recognition of net actuarial loss	130	172	123	163
Recognition of prior service cost/(credit)	(4)	(4)	(5)	(5)
TOTAL PERIODIC BENEFIT COST	$91	$122	$83	$112
Cost capitalized	(29)	(31)	(27)	(29)
Reconciliation to rate level	(2)	(23)	(1)	(25)
Total expense recognized	$60	$68	$55	$58



	For the Six Months Ended June 30,
	Con Edison		CECONY
(Millions of Dollars)	2019	2018	2019	2018
Service cost – including administrative expenses	$125	$145	$117	$136
Interest cost on projected benefit obligation	301	280	282	263
Expected return on plan assets	(494)	(516)	(468)	(490)
Recognition of net actuarial loss	259	344	246	326
Recognition of prior service cost/(credit)	(9)	(9)	(10)	(10)
TOTAL PERIODIC BENEFIT COST	$182	$244	$167	$225
Cost capitalized	(55)	(62)	(52)	(59)
Reconciliation to rate level	(7)	(46)	(6)	(50)
Total expense recognized	$120	$136	$109	$116

Components of net periodic benefit cost other than service cost are presented outside of operating income on the Companies' consolidated income statements, and only the service cost component is eligible for capitalization. Accordingly, the service cost component is included in the line "Other operations and maintenance" and the non-service cost components are included in the line "Other deductions" in the Companies' consolidated income statements.

Expected Contributions

Based on estimates as of June 30, 2019, the Companies expect to make contributions to the pension plans during 2019 of $350 million (of which $318 million is to be made by CECONY). The Companies’ policy is to fund the total periodic benefit cost of the qualified plan to the extent tax deductible and to also contribute to the non-qualified supplemental plans. During the first six months of 2019, the Companies contributed $78 million to the pension plans, of which $77 million was made by CECONY. CECONY also contributed $15 million to the external trust for its non-qualified supplemental plan.