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Pension Benefits (Tables)
 12 Months Ended
Dec. 31, 2019
Retirement Benefits [Abstract]  
Total Periodic Benefit Costs
The components of the Companies’ total periodic benefit costs for 2019, 2018 and 2017 were as follows:
  
Con Edison
CECONY
(Millions of Dollars)
2019
2018
2017
2019
2018
2017
Service cost – including administrative expenses
$250
$290
$263
$232
$272
$246
Interest cost on projected benefit obligation
601
561
591
564
525
554
Expected return on plan assets
(988)
(1,033)
(968)
(936)
(979)
(917)
Recognition of net actuarial loss
518
688
595
492
651
563
Recognition of prior service cost/(credit)
(17)
(17)
(17)
(19)
(19)
(19)
TOTAL PERIODIC BENEFIT COST
$364
$489
$464
$333
$450
$427
Cost capitalized
(108)
(127)
(181)
(102)
(119)
(169)
Reconciliation to rate level
(15)
(92)
(34)
(12)
(100)
(41)
Total expense recognized
$241
$270
$249
$219
$231
$217

The components of the Companies’ total periodic postretirement benefit costs for 2019, 2018 and 2017 were as follows:
  
Con Edison
CECONY
(Millions of Dollars)
2019
2018
2017
2019
2018
2017
Service cost
$18
$20
$20
$13
$14
$13
Interest cost on accumulated other postretirement benefit obligation
44
42
46
36
34
38
Expected return on plan assets
(66)
(73)
(69)
(54)
(63)
(61)
Recognition of net actuarial loss/(gain)
(9)
8
2
(10)
3
(3)
Recognition of prior service credit
(2)
(6)
(17)
(2)
(2)
(11)
TOTAL PERIODIC POSTRETIREMENT BENEFIT CREDIT
$(15)
$(9)
$(18)
$(17)
$(14)
$(24)
Cost capitalized
(7)
(8)
8
(5)
(6)
10
Reconciliation to rate level
12
8
(4)
7
9
(2)
Total credit recognized
$(10)
$(9)
($14)
$(15)
$(11)
($16)
Schedule of Funded Status
The funded status at December 31, 2019, 2018 and 2017 was as follows:
 
Con Edison
CECONY
(Millions of Dollars)
2019
2018

2017
2019

2018

2017

CHANGE IN PROJECTED BENEFIT OBLIGATION
 
 
 
 
 
 
Projected benefit obligation at beginning of year
$14,449
$15,536
$14,095
$13,542
$14,567
$13,203
Service cost – excluding administrative expenses
245
286
259
228
267
241
Interest cost on projected benefit obligation
601
561
591
564
525
554
Net actuarial loss/(gain)
2,191
(1,219)
1,231
2,076
(1,159)
1,171
Plan amendments
15
—

6
—

—

—

Benefits paid
(709)
(715)
(646)
(660)
(658)
(602)
PROJECTED BENEFIT OBLIGATION AT END OF YEAR
$16,792
$14,449
$15,536
$15,750
$13,542
$14,567
CHANGE IN PLAN ASSETS
 
 
 
 
 
 
Fair value of plan assets at beginning of year
$13,450
$14,274
$12,472
$12,744
$13,519
$11,815
Actual return on plan assets
2,556
(536)
2,041
2,425
(507)
1,935
Employer contributions
350
473
450
318
434
412
Benefits paid
(709)
(715)
(646)
(660)
(658)
(602)
Administrative expenses
(39)
(46)
(43)
(37)
(44)
(41)
FAIR VALUE OF PLAN ASSETS AT END OF YEAR
$15,608
$13,450
$14,274
$14,790
$12,744
$13,519
FUNDED STATUS
$(1,184)
$(999)
$(1,262)
$(960)
$(798)
$(1,048)
Unrecognized net loss
$2,604
$2,464
$2,760
$2,466
$2,338
$2,624
Unrecognized prior service costs
(173)
(205)
(223)
(202)
(222)
(242)
Accumulated benefit obligation
15,015
13,030
13,897
14,010
12,161
12,972

The funded status of the programs at December 31, 2019, 2018 and 2017 were as follows:
  
Con Edison
CECONY
(Millions of Dollars)
2019
2018

2017

2019

2018

2017

CHANGE IN BENEFIT OBLIGATION
 
 
 
 
 
 
Benefit obligation at beginning of year
$1,114
$1,219
$1,198
$913
$985
$1,007
Service cost
18
20
20
13
14
13
Interest cost on accumulated postretirement benefit obligation
44
42
46
36
34
38
Amendments
(14)
—

—

—

—

—

Net actuarial loss/(gain)
264
(70)
53
252
(32)
16
Benefits paid and administrative expenses, net of subsidies
(110)
(135)
(134)
(100)
(125)
(124)
Participant contributions
41
38
36
40
37
35
BENEFIT OBLIGATION AT END OF YEAR
$1,357
$1,114
$1,219
$1,154
$913
$985
CHANGE IN PLAN ASSETS
 
 
 
 
 
 
Fair value of plan assets at beginning of year
$885
$1,039
$975
$759
$893
$851
Actual return on plan assets
198
(66)
150
165
(54)
130
Employer contributions
7
6
17
6
6
8
Employer group waiver plan subsidies
23
34
34
22
32
30
Participant contributions
40
37
35
40
37
35
Benefits paid
(127)
(165)
(172)
(120)
(155)
(161)
FAIR VALUE OF PLAN ASSETS AT END OF YEAR
$1,026
$885
$1,039
$872
$759
$893
FUNDED STATUS
$(331)
$(229)
$(180)
$(282)
$(154)
$(92)
Unrecognized net loss/(gain)
$155
$14
$(47)
$149
$(2)
$(85)
Unrecognized prior service costs
(19)
(8)
(14)
(3)
(5)
(7)
Schedule of Assumptions
The actuarial assumptions were as follows: 
 
2019

2018

2017

Weighted-average assumptions used to determine benefit obligations at December 31:
 
 
 
Discount rate
3.35
%
4.25
%
3.70
%
Rate of compensation increase
 
 
 
CECONY
3.80
%
4.25
%
4.25
%
O&R
3.20
%
4.00
%
4.00
%
Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31:
 
 
 
Discount rate
4.25
%
3.70
%
4.25
%
Expected return on plan assets
7.00
%
7.50
%
7.50
%
Rate of compensation increase
 
 
 
CECONY
4.25
%
4.25
%
4.25
%
O&R
4.00
%
4.00
%
4.00
%

The actuarial assumptions were as follows: 
 
2019

2018

2017

Weighted-average assumptions used to determine benefit obligations at December 31:
 
 
 
Discount Rate
 
 
 
CECONY
3.10
%
4.15
%
3.55
%
O&R
3.35
%
4.30
%
3.70
%
Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31:
 
 
 
Discount Rate
 
 
 
CECONY
4.15
%
3.55
%
4.00
%
O&R
4.30
%
3.70
%
4.20
%
Expected Return on Plan Assets
6.80
%
7.50
%
7.50
%
Schedule of Expected Benefit Payments
Based on current assumptions, the Companies expect to make the following benefit payments over the next ten years:
(Millions of Dollars)
2020
2021
2022
2023
2024
2025-2029
Con Edison
$744
$756
$770
$788
$801
$4,181
CECONY
688
699
713
728
741
3,883

Based on current assumptions, the Companies expect to make the following benefit payments over the next ten years, net of receipt of governmental subsidies and participant contributions:
(Millions of Dollars)
2020
2021
2022
2023
2024
2025-2029
Con Edison
$96
$95
$93
$92
$91
$422
CECONY
87
85
83
82
80
368
Schedule of Plan Assets Allocations
The asset allocations for the pension plan at the end of 2019, 2018 and 2017, and the target allocation for 2020 are as follows:
  
Target
Allocation Range
 
           Plan Assets at December 31,
Asset Category
2020
 
2019

 
2018

 
2017

Equity Securities
45% - 55%
 
51
%
 
51
%
 
58
%
Debt Securities
33% - 43%
 
38
%
 
39
%
 
33
%
Real Estate
10% - 14%
 
11
%
 
10
%
 
9
%
Total
100%
 
100
%
 
100
%
 
100
%

The asset allocations for CECONY’s other postretirement benefit plans at the end of 2019, 2018 and 2017, and the target allocation for 2020 are as follows:
  
Target Allocation Range
 
Plan Assets at December 31,
Asset Category
2020
 
2019

 
2018

 
2017

Equity Securities
42%-80%
 
54
%
 
52
%
 
60
%
Debt Securities
20%-58%
 
46
%
 
48
%
 
40
%
Total
100%
 
100
%
 
100
%
 
100
%
Schedule of Fair Value of Plan Assets
The fair values of the pension plan assets at December 31, 2019 by asset category are as follows:
(Millions of Dollars)
Level 1

 
Level 2

 
Total

Investments within the fair value hierarchy
 
 
 
 
 
U.S. Equity (a)
$3,652
 

$—

 
$3,652
International Equity (b)
3,354
 
—

 
3,354
U.S. Government Issued Debt (c)
—

 
1,496
 
1,496
Corporate Bonds Debt (d)
—

 
3,260
 
3,260
Structured Assets Debt (e)
—

 
173
 
173
Other Fixed Income Debt (f)
—

 
955
 
955
Cash and Cash Equivalents (g)
—

 
326
 
326
Futures (h)
—

 
—

 
—

Total investments within the fair value hierarchy
$7,006
 
$6,210
 
$13,216
Investments measured at NAV per share (n)


 


 

Private Equity (i)
 
 
 
 
555
Real Estate (j)
 
 
 
 
1,806
Hedge Funds (k)
 
 
 
 
270
Total investments valued using NAV per share

 

 
$2,631
Funds for retiree health benefits (l)
(110)
 
(98)
 
(208)
Funds for retiree health benefits measured at NAV per share (l)(n)

 

 
(42)
Total funds for retiree health benefits

 

 
$(250)
Investments (excluding funds for retiree health benefits)
$6,896
 
$6,112
 
$15,597
Pending activities (m)
 
 
 
 
11
Total fair value of plan net assets
 
 
 
 
$15,608
(a)
U.S. Equity includes both actively- and passively-managed assets with investments in domestic equity index funds and actively-managed small-capitalization equities.
(b)
International Equity includes international equity index funds and actively-managed international equities.
(c)
U.S. Government Issued Debt includes agency and treasury securities.
(d)
Corporate Bonds Debt consists of debt issued by various corporations.
(e)
Structured Assets Debt includes commercial-mortgage-backed securities and collateralized mortgage obligations.
(f)
Other Fixed Income Debt includes municipal bonds, sovereign debt and regional governments.
(g)
Cash and Cash Equivalents include short term investments, money markets, foreign currency and cash collateral.
(h)
Futures consist of exchange-traded financial contracts encompassing U.S. Equity, International Equity and U.S. Government indices.
(i)
Private Equity consists of global equity funds that are not exchange-traded.
(j)
Real Estate investments include real estate funds based on appraised values that are broadly diversified by geography and property type.
(k)
Hedge Funds are within a commingled structure which invests in various hedge fund managers who can invest in all financial instruments.
(l)
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 F.
(m)
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.
(n)
In accordance with ASU 2015-07, Fair Value Measurements (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or its equivalent), 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.
The fair values of the pension plan assets at December 31, 2018 by asset category are as follows:
(Millions of Dollars)
Level 1

 
Level 2

 
Total
Investments within the fair value hierarchy
 
 
 
 
 
U.S. Equity (a)
$3,515
 
$10
 
$3,525
International Equity (b)
2,896
 
—

 
2,896
U.S. Government Issued Debt (c)
—

 
1,886
 
1,886
Corporate Bonds Debt (d)
—

 
2,619
 
2,619
Structured Assets Debt (e)
—

 
6
 
6
Other Fixed Income Debt (f)
—

 
121
 
121
Cash and Cash Equivalents (g)
160
 
556
 
716
Futures (h)
568
 
—

 
568
Total investments within the fair value hierarchy
$7,139
 
$5,198
 
$12,337
Investments measured at NAV per share (n)
 
 
 
 
 
Private Equity (i)
 
 
 
 
440
Real Estate (j)
 
 
 
 
1,310
Hedge Funds (k)


 
 
 
255
Total investments valued using NAV per share

 

 
$2,005
Funds for retiree health benefits (l)
(118)
 
(86)
 
(204)
Funds for retiree health benefits measured at NAV per share (l)(n)
 
 
 
 
(33)
Total funds for retiree health benefits
 
 
 
 
$(237)
Investments (excluding funds for retiree health benefits)
$7,021
 
$5,112
 
$14,105
Pending activities (m)
 
 
 
 
(655)
Total fair value of plan net assets
 
 
 
 
$13,450
(a) - (n) Reference is made to footnotes (a) through (n) in the above table of pension plan assets at December 31, 2019 by asset category.
The fair values of the plans' assets at December 31, 2019 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)

$—

 
$404
 
$404
Other Fixed Income Debt (b)
—

 
331
 
331
Cash and Cash Equivalents (c)
—

 
23
 
23
Total investments

$—

 
$758
 
$758
Funds for retiree health benefits (d)
110

 
98
 
208
Investments (including funds for retiree health benefits)

$110

 
$856
 
$966
Funds for retiree health benefits measured at net asset value (d)(e)
 
 
 
 
42
Pending activities (f)
 
 
 
 
18
Total fair value of plan net assets
 
 
 
 
$1,026
(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 Bloomberg Barclays U.S. Long Credit Index and an active separately managed fund indexed to the Bloomberg Barclays U.S. Long Credit 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, Fair Value Measurements (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or its equivalent), 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.
(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 plans' assets at December 31, 2018 by asset category (see Note P) are as follows:
(Millions of Dollars)
Level 1

 
Level 2
 
Total
Equity (a)

$—

 
$322
 
$322
Other Fixed Income Debt (b)
—

 
289
 
289
Cash and Cash Equivalents (c)
—

 
14
 
14
Total investments

$—

 
$625
 
$625
Funds for retiree health benefits (d)
118

 
86
 
204
Investments (including funds for retiree health benefits)

$118

 
$711
 
$829
Funds for retiree health benefits measured at net asset value (d)(e)
 
 
 
 
33
Pending activities (f)
 
 
 
 
23
Total fair value of plan net assets
 
 
 
 
$885
(a) - (f) Reference is made to footnotes (a) through (f) in the above table of other postretirement benefit plan assets at December 31, 2019 by asset category.
Schedule of Employer Contribution to Defined Savings Plan
The Companies also offer a defined contribution savings plan that covers substantially all employees and made contributions to the plan as follows:
  
              For the Years Ended December 31,
(Millions of Dollars)
2019
 
2018
 
2017
Con Edison
$49
 
$45
 
$40
CECONY
42
 
39
 
35