Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2022

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Fair Value on Recurring Basis

For information on the measurement of Con Edison's investment in MVP, which was measured at fair value on a non-recurring basis, see Note A. Assets and liabilities measured at fair value on a recurring basis for the years ended December 31, 2022 and 2021 are summarized below.

	2022					2021
(Millions of Dollars)	Level 1	Level 2	Level 3	Netting Adjustment (e)	Total	Level 1	Level 2	Level 3	Netting Adjustment (e)	Total
Con Edison
Derivative assets:
Commodity (a)(b)(c)	$84	$476	$2	$(420)	$142	$95	$260	$17	$(171)	$201
Commodity held for sale (g)	6	34	31	2	73	—	—	—	—	—
Interest rate swaps (a)(b)(c)(f) (g)	—	106	—	—	106	—	4	—	—	4
Other (a)(b)(d)	437	116	—	—	553	492	135	—	—	627
Total assets	$527	$732	$33	$(418)	$874	$587	$399	$17	$(171)	$832
Derivative liabilities:
Commodity (a)(b)(c)	$18	$204	$16	$(184)	$54	$33	$266	$28	$(148)	$179
Commodity held for sale (g)	8	24	2	2	36
Interest rate swaps (a)(b)(c)(f) (g)	—	—	—	—	—	—	57	—	—	57
Total liabilities	$26	$228	$18	$(182)	$90	$33	$323	$28	$(148)	$236
CECONY
Derivative assets:
Commodity (a)(b)(c)	$83	$434	$2	$(388)	$131	$67	$138	$1	$(79)	$127
Other (a)(b)(d)	422	110	—	—	532	474	127	—	—	601
Total assets	$505	$544	$2	$(388)	$663	$541	$265	$1	$(79)	$728
Derivative liabilities:
Commodity (a)(b)(c)	$18	$198	$8	$(180)	$44	$1	$172	$8	$(53)	$128

 

(a)The Companies’ policy is to review the fair value hierarchy and recognize transfers into and transfers out of the levels at the end of each reporting period. Con Edison and CECONY had an immaterial amount of derivative liabilities and $10 million and $9 million of commodity derivative assets, respectively, transferred from level 3 to level 2 during the year ended December 31, 2022 because of availability of observable market data due to the decrease in the terms of certain contracts from beyond three years as of September 30, 2022 to less than three years as of December 31, 2022. Con Edison and CECONY had $1 million of commodity derivative assets and $4 million and $3 million of commodity derivative liabilities, respectively, transferred from level 3 to level 2 during the year ended December 31, 2021 because of availability of observable market data due to the decrease in the terms of certain contracts from beyond three years as of September 30, 2021 to less than three years as of December 31, 2021.

(b)Level 2 assets and liabilities include investments held in the deferred compensation plan and/or non-qualified retirement plans, exchange-traded contracts where there is insufficient market liquidity to warrant inclusion in Level 1, and certain over-the-counter derivative instruments for electricity, refined products and natural gas. Derivative instruments classified as Level 2 are valued using industry standard models that incorporate corroborated observable inputs, such as pricing services or prices from similar instruments that trade in liquid markets, time value and volatility factors.

(c)The accounting rules for fair value measurements and disclosures require consideration of the impact of nonperformance risk (including credit risk) from a market participant perspective in the measurement of the fair value of assets and liabilities. At December 31, 2022 and 2021, the Companies determined that nonperformance risk would have no material impact on their financial position or results of operations.

(d)Other assets are comprised of assets such as life insurance contracts within the deferred compensation plan and non-qualified retirement plans.

(e)Amounts represent the impact of legally-enforceable master netting agreements that allow the Companies to net gain and loss positions and cash collateral held or placed with the same counterparties.

(f)See Note Q.

(g)Amounts for 2022 represent the Clean Energy Businesses' derivative assets and liabilities included in current assets and current liabilities held for sale, respectively on Con Edison's consolidated balance sheet as of December 31, 2022. See "Assets and Liabilities Held for Sale" in Note A and Note X.

Schedule of Commodity Derivatives

	Fair Value of Level 3 at December 31, 2022
	(Millions of Dollars)	Valuation Techniques	Unobservable Inputs	Range
Con Edison — Commodity
Electricity - Held and Used	$(15)	Discounted Cash Flow	Forward capacity prices (a)	$1.42-$16.08 per kW-month
Transmission Congestion Contracts/Financial Transmission Rights - Held and Used	1	Discounted Cash Flow	Inter-zonal forward price curves adjusted for historical zonal losses (b)	$0.91-$3.03 per MWh
Total Con Edison - Commodity - Held and Used	$(14)
Electricity - Held for Sale	$14	Discounted Cash Flow	Forward energy prices (a)	$22.00-$187.50 per MWh
	10	Discounted Cash Flow	Forward capacity prices (a)	$0.96-$5.75 per kW-month
Transmission Congestion Contracts/Financial Transmission Rights - Held for Sale	4	Discounted Cash Flow	Inter-zonal forward price curves adjusted for historical zonal losses (b)	$(12.44)-$195.57 per MWh
Natural Gas - Held for Sale	1	Discounted Cash Flow	Forward natural gas prices (a)	$3.75-$14.51 per Dt
Total Con Edison - Commodity - Held for Sale (c)	$29
Total Con Edison — Commodity	$15
CECONY — Commodity
Electricity	$(7)	Discounted Cash Flow	Forward capacity prices (a)	$1.42-$16.08 per kW-month
Transmission Congestion Contracts	1	Discounted Cash Flow	Inter-zonal forward price curves adjusted for historical zonal losses (b)	$0.91-$3.03 per MWh
Total CECONY — Commodity	$(6)

 

(a)Generally, increases/(decreases) in this input in isolation would result in a higher/(lower) fair value measurement.

(b)Generally, increases/(decreases) in this input in isolation would result in a lower/(higher) fair value measurement.

(c)Amount represents the Fair Value of Level 3 assets of the Clean Energy Businesses, which were held for sale as of December 31, 2022. See "Assets and Liabilities Held for Sale" in Note A and Note X.

Reconciliation of Beginning and Ending Net Balances for Assets and Liabilities Measured at Level 3 Fair Value

The table listed below provides a reconciliation of the beginning and ending net balances for assets and liabilities measured at fair value for the years ended December 31, 2022 and 2021 and classified as Level 3 in the fair value hierarchy:

 

	Con Edison		CECONY
(Millions of Dollars)	2022	2021	2022	2021
Beginning balance as of January 1,	$(11)	$(19)	$(7)	$(10)
Included in earnings	(11)	(9)	(5)	(3)
Included in regulatory assets and liabilities	11	3	10	1
Purchases	—	6	—	—
Settlements	11	5	5	3
Changes in level 3 assets and liabilities held for sale (a)	25	—	—	—
Transfer out of level 3	(10)	3	(9)	2
Ending balance as of December 31,	$15	$(11)	$(6)	$(7)

(a)Amounts for 2022 represent the net change in the value of level 3 assets and liabilities of the Clean Energy Businesses. The Clean Energy Businesses were classified as held for sale as of December 31, 2022. See "Assets and Liabilities Held for Sale" in Note A and Note X.