Income Tax (Tables)

12 Months Ended

Dec. 31, 2021

The components of income tax are as follows:


	Con Edison			CECONY
(Millions of Dollars)	2021	2020	2019	2021	2020	2019
State
Current	$14	$7	$(12)	$1	$6	$22
Deferred	79	50	96	106	97	68
Federal
Current	43	(2)	—	121	41	185
Deferred	61	42	219	21	73	63
Amortization of investment tax credits	(7)	(7)	(7)	(3)	(2)	(3)
Total income tax expense	$190	$90	$296	$246	$215	$335

Schedule of Differences on Deferred Tax Assets and Liabilities

The tax effects of temporary differences, which gave rise to deferred tax assets and liabilities, are as follows:


	Con Edison		CECONY
(Millions of Dollars)	2021	2020	2021	2020	0
Deferred tax liabilities:
Property basis differences	$8,298	$7,985	$7,213	$6,901
Regulatory assets:
Unrecognized pension and other postretirement costs	36	910	31	861
Environmental remediation costs	264	243	241	222
Deferred storm costs	33	31	—	—
Other regulatory assets	640	536	609	508
Operating lease right-of-use asset	204	220	155	165
Pension Asset Reserve	478	—	471	—
Equity investments	—	46	—	—
Other	30	—	—	—
Total deferred tax liabilities	$9,983	$9,971	$8,720	$8,657
Deferred tax assets:
Accrued pension and other postretirement costs	$218	$504	$188	$427
Regulatory liabilities:
Future income tax	554	617	517	579
Other regulatory liabilities	727	656	620	570
Superfund and other environmental costs	264	241	238	219
Asset retirement obligations	177	178	141	143
Operating lease liabilities	195	211	155	165
Loss carryforwards	144	164	38	34
Tax credits carryforward	946	1,022	—	—
Valuation allowance	(22)	(22)	—	—
Equity investments	34	—	—	—
Other	—	59	42	127
Total deferred tax assets	3,237	3,630	1,939	2,264
Net deferred tax liabilities	$6,746	$6,341	$6,781	$6,393
Unamortized investment tax credits	127	134	15	18
Net deferred tax liabilities and unamortized investment tax credits	$6,873	$6,475	$6,796	$6,411

Schedule of Income Tax Reconciliation

Reconciliation of the difference between income tax expense and the amount computed by applying the prevailing statutory income tax rate to income before income taxes is as follows:


	Con Edison						CECONY
(% of Pre-tax income)	2021		2020		2019		2021		2020		2019
STATUTORY TAX RATE
Federal	21	%	21	%	21	%	21	%	21	%	21	%
Changes in computed taxes resulting from:
State income taxes, net of federal income tax benefit	4		4		4		5		5		5
Taxes attributable to noncontrolling interests	3		(1)		(1)		—		—		—
Cost of removal	2		2		1		1		1		1
Other plant-related items	(1)		(1)		(1)		(1)		(1)		(1)

Amortization of excess deferred federal income taxes	(12)		(14)		(4)		(11)		(12)		(4)
Renewable energy credits	(2)		(3)		(2)		—		—		—
Research and development credits	(1)		—		(1)		—		—		(1)
Other	—		(1)		—		—		1		—
Effective tax rate	14	%	7	%	17	%	15	%	15	%	21	%

Summary of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amounts of unrecognized tax benefits for Con Edison and CECONY follows:


	Con Edison			CECONY
(Millions of Dollars)	2021	2020	2019	2021	2020	2019
Balance at January 1,	$14	$13	$6	$3	$2	$4
Additions based on tax positions related to the current year	3	—	1	2	—	1
Additions based on tax positions of prior years	2	1	10	1	1	—
Reductions for tax positions of prior years	(2)	—	(2)	(1)	—	(1)
Reductions from expiration of statute of limitations	—	—	—	—	—	—
Settlements	—	—	(2)	—	—	(2)
Balance at December 31,	$17	$14	$13	$5	$3	$2