Other Postretirement Benefits (Tables)

12 Months Ended

Dec. 31, 2022

Retirement Benefits [Abstract]

Net Periodic Benefit Costs

The components of the Companies’ total periodic benefit costs for 2022, 2021 and 2020 were as follows:

	Con Edison			CECONY
(Millions of Dollars)	2022	2021	2020	2022	2021	2020
Service cost – including administrative expenses	$287	$343	$293	$270	$321	$274
Interest cost on projected benefit obligation	505	471	549	475	443	515
Expected return on plan assets	(1,168)	(1,096)	(1,034)	(1,109)	(1,040)	(980)
Recognition of net actuarial loss	377	787	699	358	746	661
Recognition of prior service credit	(16)	(17)	(16)	(21)	(19)	(19)
TOTAL PERIODIC BENEFIT COST	$(15)	$488	$491	$(27)	$451	$451
Cost capitalized	(137)	(154)	(130)	(129)	(146)	(123)
Reconciliation to rate level	259	(226)	(250)	245	(216)	(239)
Total expense recognized	$107	$108	$111	$89	$89	$89

The components of the Companies’ total periodic postretirement benefit costs for 2022, 2021 and 2020 were as follows:

	Con Edison			CECONY
(Millions of Dollars)	2022	2021	2020	2022	2021	2020
Service cost	$18	$22	$21	$15	$16	$16
Interest cost on accumulated other postretirement benefit obligation	35	33	37	30	28	31
Expected return on plan assets	(72)	(68)	(66)	(58)	(56)	(54)
Recognition of net actuarial loss/(gain)	(14)	31	37	(9)	27	36
Recognition of prior service credit	(1)	(3)	(3)	—	(1)	(2)
TOTAL PERIODIC POSTRETIREMENT BENEFIT COST/(CREDIT)	$(34)	$15	$26	$(22)	$14	$27
Cost capitalized	(8)	(9)	(9)	(7)	(7)	(7)
Reconciliation to rate level	29	(7)	(17)	24	(12)	(25)
Total credit recognized	$(13)	($1)	$—	$(5)	$(5)	$(5)

Schedule of Funded Status

The funded status at December 31, 2022, 2021 and 2020 was as follows:

	Con Edison			CECONY
(Millions of Dollars)	2022	2021	2020	2022	2021	2020
CHANGE IN PROJECTED BENEFIT OBLIGATION
Projected benefit obligation at beginning of year	$17,357	$18,965	$16,792	$16,341	$17,821	$15,750
Service cost – excluding administrative expenses	283	337	288	266	317	269
Interest cost on projected benefit obligation	505	471	549	475	443	515
Net actuarial loss/(gain)	(5,102)	(1,547)	2,281	(4,845)	(1,441)	2,154
Benefits paid	(930)	(869)	(945)	(842)	(799)	(867)
PROJECTED BENEFIT OBLIGATION AT END OF YEAR	$12,113	$17,357	$18,965	$11,395	$16,341	$17,821
CHANGE IN PLAN ASSETS
Fair value of plan assets at beginning of year	$18,504	$17,022	$15,608	$17,566	$16,147	$14,790
Actual return on plan assets	(2,583)	1,935	1,927	(2,453)	1,838	1,830
Employer contributions	30	469	475	17	432	435
Benefits paid	(930)	(869)	(945)	(842)	(799)	(867)
Administrative expenses	(42)	(53)	(43)	(40)	(52)	(41)
FAIR VALUE OF PLAN ASSETS AT END OF YEAR	$14,979	$18,504	$17,022	$14,248	$17,566	$16,147
FUNDED STATUS	$2,866	$1,147	$(1,943)	$2,853	$1,225	$(1,674)
Unrecognized net loss/(gain)	$(1,485)	$205	$3,330	$(1,397)	$207	$3,145
Unrecognized prior service costs/(credits)	(124)	(140)	(156)	(143)	(163)	(183)
Accumulated benefit obligation	$11,167	$15,469	$16,768	$10,478	$14,504	$15,676

The funded status of the programs at December 31, 2022, 2021 and 2020 were as follows:

	Con Edison			CECONY
(Millions of Dollars)	2022	2021	2020	2022	2021	2020
CHANGE IN BENEFIT OBLIGATION
Benefit obligation at beginning of year	$1,398	$1,425	$1,357	$1,189	$1,209	$1,154
Service cost	18	22	21	15	16	16
Interest cost on accumulated postretirement benefit obligation	35	33	37	30	28	31
Net actuarial loss/(gain)	(311)	(13)	74	(239)	(3)	63
Benefits paid and administrative expenses, net of subsidies	(130)	(117)	(117)	(121)	(107)	(107)
Participant contributions	48	48	53	47	46	52
BENEFIT OBLIGATION AT END OF YEAR	$1,058	$1,398	$1,425	$921	$1,189	$1,209
CHANGE IN PLAN ASSETS
Fair value of plan assets at beginning of year	$1,150	$1,115	$1,026	$955	$940	$872
Actual return on plan assets	(225)	92	142	(187)	67	117
Employer contributions	13	6	7	10	3	4
Employer group waiver plan subsidies	55	21	20	50	19	19
Participant contributions	48	48	53	47	46	51
Benefits paid	(181)	(132)	(133)	(167)	(120)	(123)
FAIR VALUE OF PLAN ASSETS AT END OF YEAR	$860	$1,150	$1,115	$708	$955	$940
FUNDED STATUS	$(198)	$(248)	$(310)	$(213)	$(234)	$(269)
Unrecognized net loss/(gain)	$37	$41	$115	$78	$67	$114
Unrecognized prior service costs	(12)	(13)	(16)	—	—	(1)

Schedule of Actuarial Assumptions

The actuarial assumptions were as follows: 

	2022		2021		2020
Weighted-average assumptions used to determine benefit obligations at December 31:
Discount rate	5.45	%	3.00	%	2.55	%
Interest crediting rate for cash balance plan	4.00	%	3.50	%	3.00	%
Rate of compensation increase
CECONY	3.80	%	3.80	%	3.80	%
O&R	3.20	%	3.20	%	3.20	%
Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31:
Discount rate	3.00	%	2.55	%	3.35	%
Interest crediting rate for cash balance plan	3.50	%	3.00	%	3.30	%
Expected return on plan assets	7.00	%	7.00	%	7.00	%
Rate of compensation increase
CECONY	3.80	%	3.80	%	3.80	%
O&R	3.20	%	3.20	%	3.20	%

The actuarial assumptions were as follows: 

	2022		2021		2020
Weighted-average assumptions used to determine benefit obligations at December 31:
Discount Rate
CECONY	5.35	%	2.75	%	2.25	%
O&R	5.45	%	3.00	%	2.55	%
Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31:
Discount Rate
CECONY	2.75	%	2.25	%	3.10	%
O&R	3.00	%	2.55	%	3.35	%
Expected Return on Plan Assets	6.80	%	6.80	%	6.80	%

Schedule of Health Care Cost Trend Rates

The health care cost trend rates for covered medical and prescription medication expenses used to determine the accumulated other postretirement benefit obligations (APBO) at December 31, 2022 were assumed to increase each year, with the initial rate gradually decreasing to the ultimate rate as follows:

	Initial Cost Trend Rate	Ultimate Cost Trend Rate	Year That Ultimate Rate is Reached
Pre-65 Medical	7.00%	4.50%	2036
Post-65 Medical	4.50%	4.50%	—
Prescription Medications	7.50%	4.50%	2035

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)	2023	2024	2025	2026	2027	2028-2032
Con Edison	$748	$759	$809	$780	$792	$4,095
CECONY	692	703	754	725	738	3,824

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)	2023	2024	2025	2026	2027	2028-2032
Con Edison	$79	$80	$85	$86	$87	$430
CECONY	71	71	76	77	78	384

Schedule of Plan Assets Allocations

The asset allocations for the pension plan at the end of 2022, 2021 and 2020, and the target allocation for 2023 are as follows:

	Target Allocation Range	Plan Assets at December 31,
Asset Category	2023	2022		2021		2020
Equity Securities	28% - 38%	33	%	50	%	51	%
Debt Securities	42% - 60%	50	%	38	%	38	%
Real Estate and Other Alternatives	12% - 22%	17	%	12	%	11	%
Total		100	%	100	%	100	%

The asset allocations for CECONY’s other postretirement benefit plans at the end of 2022, 2021 and 2020, and the target allocation for 2023 are as follows:

	Target Allocation Range	Plan Assets at December 31,
Asset Category	2023	2022		2021		2020
Equity Securities	42%-80%	49	%	55	%	54	%
Debt Securities	20%-58%	51	%	45	%	46	%
Total	100%	100	%	100	%	100	%

Schedule of Fair Value of Plan Assets

The fair values of the pension plan assets at December 31, 2022 by asset category are as follows:

(Millions of Dollars)	Level 1	Level 2	Total
Investments within the fair value hierarchy
U.S. Equity (a)	$2,150	$3	$2,153
International Equity (b)	1,534	—	1,534
U.S. Government Issued Debt (c)	—	823	823
Corporate Bonds Debt (d)	—	4,961	4,961
Structured Assets Debt (e)	—	183	183
Other Fixed Income Debt (f)	—	1,088	1,088
Cash and Cash Equivalents (g)	71	274	345
Futures (h)	(1)	—	(1)
Total investments within the fair value hierarchy	$3,754	$7,332	$11,086
Investments measured at NAV per share (n)
Private Equity (i)			1,018
Real Estate (j)			2,366
Hedge Funds (k)			657
Total investments valued using NAV per share			$4,041
Funds for retiree health benefits (l)	(48)	(91)	(139)
Funds for retiree health benefits measured at NAV per share (l)(n)			(51)
Total funds for retiree health benefits			$(190)
Investments (excluding funds for retiree health benefits)	$3,706	$7,241	$14,937
Pending activities (m)			42
Total fair value of plan net assets			$14,979

(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 private market investments. Private equity's investment objective is to generate returns on capital from a diversified portfolio of primary fund investments, secondaries and co-investments. The plan's unfunded commitments to private equity were approximately $260 million at December 31, 2022. However, the managers also expect to make significant cash flow distributions in 2023 and 2024. While the investments in this asset class cannot be redeemed, the plan would be able to receive distributions from selling its limited partnership interests in the secondary market, which would be expected to take three to six months.

(j)Real Estate investments include open-end real estate funds that invest in a portfolio of real properties that are broadly diversified by geography and property type. The real estate asset class is expected to produce returns from income and capital appreciation. Real estate also provides a hedge against inflation. The funds allow for quarterly redemptions, however the amount and timing of distributions are subject to market conditions and are currently uncertain.

(k)Hedge Funds are structured as a custom fund of one and that strategy can invest in external hedge fund managers that can pursue a wide array of strategies including event driven, fundamental long/short, relative value, directional trading, and direct sourcing. This asset class seeks to generate positive absolute returns with lower volatility than other asset classes. It invests in various hedge fund managers who can invest in all financial instruments. If desired, substantially all of the investment could be liquidated within 18 months.

(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, 2021 by asset category are as follows:

(Millions of Dollars)	Level 1	Level 2	Total
Investments within the fair value hierarchy
U.S. Equity (a)	$4,381	$—	$4,381
International Equity (b)	3,536	—	3,536
U.S. Government Issued Debt (c)	—	1,500	1,500
Corporate Bonds Debt (d)	—	3,936	3,936
Structured Assets Debt (e)	—	262	262
Other Fixed Income Debt (f)	—	1,186	1,186
Cash and Cash Equivalents (g)	80	425	505
Futures (h)	2	—	2
Total investments within the fair value hierarchy	$7,999	$7,309	$15,308
Investments measured at NAV per share (n)
Private Equity (i)			913
Real Estate (j)			2,306
Hedge Funds (k)			315
Total investments valued using NAV per share			$3,534
Funds for retiree health benefits (l)	(110)	(100)	(210)
Funds for retiree health benefits measured at NAV per share (l)(n)			(48)
Total funds for retiree health benefits			$(258)
Investments (excluding funds for retiree health benefits)	$7,889	$7,209	$18,584
Pending activities (m)			(80)
Total fair value of plan net assets			$18,504

(a) - (n) Reference is made to footnotes (a) through (n) in the above table of pension plan assets at December 31, 2022 by asset category.

The fair values of the plans' assets at December 31, 2022 by asset category as defined by the accounting rules for fair value measurements (see Note R) are as follows:

(Millions of Dollars)	Level 1	Level 2	Total
Equity (a)	$—	$339	$339
Other Fixed Income Debt (b)	10	275	285
Cash and Cash Equivalents (c)	—	25	25
Total investments	$10	$639	$649
Funds for retiree health benefits (d)	48	91	139
Investments (including funds for retiree health benefits)	$58	$730	$788
Funds for retiree health benefits measured at net asset value (d)(e)			51
Pending activities (f)			21
Total fair value of plan net assets			$860

(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, 2021 by asset category (see Note R) are as follows:

(Millions of Dollars)	Level 1	Level 2	Total
Equity (a)	$—	$474	$474
Other Fixed Income Debt (b)	—	379	379
Cash and Cash Equivalents (c)	—	22	22
Total investments	$—	$875	$875
Funds for retiree health benefits (d)	110	100	210
Investments (including funds for retiree health benefits)	$110	$975	$1,085
Funds for retiree health benefits measured at net asset value (d)(e)			48
Pending activities (f)			17
Total fair value of plan net assets			$1,150

(a) - (f) Reference is made to footnotes (a) through (f) in the above table of other postretirement benefit plan assets at December 31, 2022 by asset category.