Leases

9 Months Ended

Sep. 30, 2023

Leases [Abstract]

Leases

Leases

Operating lease cost and cash paid for amounts included in the measurement of lease liabilities for the three and nine months ended September 30, 2023 and 2022 were as follows:

	For the Three Months Ended September 30,
	Con Edison		CECONY
(Millions of Dollars)	2023	2022	2023	2022
Operating lease cost	$17	$22	$17	$17
Operating lease cash flows	$6	$11	$6	$5

	For the Nine Months Ended September 30,
	Con Edison (a)		CECONY
(Millions of Dollars)	2023	2022	2023	2022
Operating lease cost	$53	$66	$49	$50
Operating lease cash flows	$17	$28	$14	$13

(a) Amounts for Con Edison include amounts for the Clean Energy Businesses through February 2023. On March 1, 2023, Con Edison completed the sale of substantially all of the assets of the Clean Energy Businesses. See Note S and Note T.

As of September 30, 2023 and December 31, 2022, assets recorded as finance leases were $2 million for Con Edison and $1 million for CECONY, and the accumulated amortization associated with finance leases for Con Edison and CECONY were $2 million and $1 million as of September 30, 2023, respectively, and $5 million and $2 million as of December 31, 2022, respectively.

For the three and nine months ended September 30, 2023 and 2022, finance lease costs and cash flows for Con Edison and CECONY were immaterial.

Right-of-use assets obtained in exchange for operating lease obligations for Con Edison and CECONY were $9 million for the three months ended September 30, 2023 and $11 million for the nine months ended September 30, 2023. Right-of-use assets obtained in exchange for operating lease obligations for Con Edison and CECONY were $5 million and $3 million, respectively, for the three months ended September 30, 2022 and $76 million and $67 million, respectively, for the nine months ended September 30, 2022.

Other information related to leases for Con Edison and CECONY at September 30, 2023 and December 31, 2022 were as follows:

	Con Edison		CECONY
	2023	2022	2023	2022
Weighted Average Remaining Lease Term:
Operating leases (a)(b)	11.6 years	12.3 years	11.6 years	12.4 years
Finance leases	6.5 years	7.2 years	2.9 years	2.3 years
Weighted Average Discount Rate:
Operating leases (a)(b)	3.7%	3.7%	3.7%	3.7%
Finance leases	3.0%	1.9%	3.0%	1.0%

(a)Amounts for Con Edison exclude operating leases of the Clean Energy Businesses, inclusive of Broken Bow II, that were classified as held for sale as of December 31, 2022. Including the operating leases of the Clean Energy Businesses would result in a weighted average remaining lease term of 18.3 years and a weighted average discount rate of 4.4 percent as of December 31, 2022. On March 1, 2023, Con Edison completed the sale of substantially all of the assets of the Clean Energy Businesses. See Note S and Note T.

(b)Amounts for Con Edison in 2023 exclude the operating lease of Broken Bow II, that was classified as held for sale as of September 30, 2023. Including the operating lease of Broken Bow II would result in a weighted average remaining lease term of 11.7 years and a weighted average discount rate of 3.8% as of September 30, 2023. See Note T.

Future minimum lease payments under non-cancellable leases at September 30, 2023 were as follows:

(Millions of Dollars)	Con Edison		CECONY
Year Ending September 30, (b)	Operating Leases	Finance Leases	Operating Leases	Finance Leases
2024	$65	$1	$65	$1
2025	66	—	65	—
2026	65	—	65	—
2027	65	—	65	—
2028	60	—	60	—
All years thereafter	419	1	419	—
Total future minimum lease payments	$740	$2	$739	$1
Less: imputed interest	(149)	—	(149)	—
Total	$591	$2	$590	$1
Reported as of September 30, 2023
Operating lease liabilities (current) (a)	$114	$—	$114	$—
Operating lease liabilities (noncurrent) (a)	477	—	476	—
Other noncurrent liabilities	—	2	—	1
Total	$591	$2	$590	$1

(a)Amounts exclude operating lease liabilities of Broken Bow II ($7 million) that are classified as current liabilities held for sale on Con Edison's consolidated balance sheet as of September 30, 2023. See Note T.

(b)Amounts exclude future minimum operating lease payments of Broken Bow II, of $3 million in total for years ended September 30, 2024 through 2028, and $10 million for all years thereafter, and imputed interest of $6 million.

The Utilities are lessors under certain leases whereby the Utilities own real estate and distribution poles and lease portions of them to others. Revenue under such leases was immaterial for Con Edison and CECONY for the three and nine months ended September 30, 2023 and 2022.

Leases

Leases

Operating lease cost and cash paid for amounts included in the measurement of lease liabilities for the three and nine months ended September 30, 2023 and 2022 were as follows:

	For the Three Months Ended September 30,
	Con Edison		CECONY
(Millions of Dollars)	2023	2022	2023	2022
Operating lease cost	$17	$22	$17	$17
Operating lease cash flows	$6	$11	$6	$5

	For the Nine Months Ended September 30,
	Con Edison (a)		CECONY
(Millions of Dollars)	2023	2022	2023	2022
Operating lease cost	$53	$66	$49	$50
Operating lease cash flows	$17	$28	$14	$13

(a) Amounts for Con Edison include amounts for the Clean Energy Businesses through February 2023. On March 1, 2023, Con Edison completed the sale of substantially all of the assets of the Clean Energy Businesses. See Note S and Note T.

As of September 30, 2023 and December 31, 2022, assets recorded as finance leases were $2 million for Con Edison and $1 million for CECONY, and the accumulated amortization associated with finance leases for Con Edison and CECONY were $2 million and $1 million as of September 30, 2023, respectively, and $5 million and $2 million as of December 31, 2022, respectively.

For the three and nine months ended September 30, 2023 and 2022, finance lease costs and cash flows for Con Edison and CECONY were immaterial.

Right-of-use assets obtained in exchange for operating lease obligations for Con Edison and CECONY were $9 million for the three months ended September 30, 2023 and $11 million for the nine months ended September 30, 2023. Right-of-use assets obtained in exchange for operating lease obligations for Con Edison and CECONY were $5 million and $3 million, respectively, for the three months ended September 30, 2022 and $76 million and $67 million, respectively, for the nine months ended September 30, 2022.

Other information related to leases for Con Edison and CECONY at September 30, 2023 and December 31, 2022 were as follows:

	Con Edison		CECONY
	2023	2022	2023	2022
Weighted Average Remaining Lease Term:
Operating leases (a)(b)	11.6 years	12.3 years	11.6 years	12.4 years
Finance leases	6.5 years	7.2 years	2.9 years	2.3 years
Weighted Average Discount Rate:
Operating leases (a)(b)	3.7%	3.7%	3.7%	3.7%
Finance leases	3.0%	1.9%	3.0%	1.0%

(a)Amounts for Con Edison exclude operating leases of the Clean Energy Businesses, inclusive of Broken Bow II, that were classified as held for sale as of December 31, 2022. Including the operating leases of the Clean Energy Businesses would result in a weighted average remaining lease term of 18.3 years and a weighted average discount rate of 4.4 percent as of December 31, 2022. On March 1, 2023, Con Edison completed the sale of substantially all of the assets of the Clean Energy Businesses. See Note S and Note T.

(b)Amounts for Con Edison in 2023 exclude the operating lease of Broken Bow II, that was classified as held for sale as of September 30, 2023. Including the operating lease of Broken Bow II would result in a weighted average remaining lease term of 11.7 years and a weighted average discount rate of 3.8% as of September 30, 2023. See Note T.

Future minimum lease payments under non-cancellable leases at September 30, 2023 were as follows:

(Millions of Dollars)	Con Edison		CECONY
Year Ending September 30, (b)	Operating Leases	Finance Leases	Operating Leases	Finance Leases
2024	$65	$1	$65	$1
2025	66	—	65	—
2026	65	—	65	—
2027	65	—	65	—
2028	60	—	60	—
All years thereafter	419	1	419	—
Total future minimum lease payments	$740	$2	$739	$1
Less: imputed interest	(149)	—	(149)	—
Total	$591	$2	$590	$1
Reported as of September 30, 2023
Operating lease liabilities (current) (a)	$114	$—	$114	$—
Operating lease liabilities (noncurrent) (a)	477	—	476	—
Other noncurrent liabilities	—	2	—	1
Total	$591	$2	$590	$1

(a)Amounts exclude operating lease liabilities of Broken Bow II ($7 million) that are classified as current liabilities held for sale on Con Edison's consolidated balance sheet as of September 30, 2023. See Note T.

(b)Amounts exclude future minimum operating lease payments of Broken Bow II, of $3 million in total for years ended September 30, 2024 through 2028, and $10 million for all years thereafter, and imputed interest of $6 million.

The Utilities are lessors under certain leases whereby the Utilities own real estate and distribution poles and lease portions of them to others. Revenue under such leases was immaterial for Con Edison and CECONY for the three and nine months ended September 30, 2023 and 2022.