XML 89 R63.htm IDEA: XBRL DOCUMENT

Derivative Instruments and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

The fair values of the Companies’ derivatives, including the offsetting of assets and liabilities, on the consolidated balance sheet at December 31, 2023 and 2022 were:


(Millions of Dollars)	2023				2022
Balance Sheet Location	Gross Amounts of Recognized Assets/ (Liabilities)	Gross Amounts Offset	Net Amounts of Assets/(Liabilities) (a)		Gross Amounts of Recognized Assets/ (Liabilities)	Gross Amounts Offset	Net Amounts of Assets/(Liabilities) (a)
Con Edison
Fair value of derivative assets
Current	$83	$(38)	$45	(b)	$378	$(332)	$46	(b)
Noncurrent	77	(29)	48		193	(108)	85
Total fair value of derivative assets held and used	$160	$(67)	$93		$571	$(440)	$131
Current - assets held for sale (d)	—	—	—		93	(8)	85	(c)
Noncurrent - assets held for sale (d)	—	—	—		83	11	94	(c)
Total fair value of derivative assets	$160	$(67)	$93		$747	$(437)	$310
Fair value of derivative liabilities
Current	$(230)	$52	$(178)	(b)	$(198)	$166	$(32)	(b)
Noncurrent	(154)	33	(121)		(49)	36	(13)
Total fair value of derivative liabilities held and used	$(384)	$85	$(299)		$(247)	$202	$(45)
Current - liabilities held for sale (d)	—	—	—		(31)	6	(25)
Noncurrent - liabilities held for sale (d)	—	—	—		(3)	(8)	(11)
Total fair value of derivative liabilities	$(384)	$85	$(299)		$(281)	$200	$(81)
Net fair value derivative assets/(liabilities)	$(224)	$18	$(206)		$466	$(237)	$229
CECONY
Fair value of derivative assets
Current	$78	$(35)	$43	(b)	$350	$(312)	$38	(b)
Noncurrent	76	(27)	49		176	(96)	80
Total fair value of derivative assets	$154	$(62)	$92		$526	$(408)	$118
Fair value of derivative liabilities
Current	$(217)	$48	$(169)	(b)	$(189)	$160	$(29)
Noncurrent	(139)	31	(108)		(43)	34	(9)
Total fair value of derivative liabilities	$(356)	$79	$(277)		$(232)	$194	$(38)
Net fair value derivative assets/(liabilities)	$(202)	$17	$(185)		$294	$(214)	$80

(a)Derivative instruments and collateral were offset on the consolidated balance sheet as applicable under the accounting rules. The Companies enter into master agreements for their commodity derivatives. These agreements typically provide offset in the event of contract termination. In such case, generally the non-defaulting party’s payable will be offset by the defaulting party’s payable. The non-defaulting party will customarily notify the defaulting party within a specific time period and come to an agreement on the early termination amount.

(b)At December 31, 2023, margin deposits for Con Edison and CECONY of $7 million and $6 million, respectively were classified as derivative assets and $(15) million and $(10) million, respectively were classified as derivative liabilities on the consolidated balance sheet, but not included in the table. At December 31, 2022, margin deposits for Con Edison and CECONY of $13 million were classified as derivative assets, and $(10) million and $(6) million, respectively were classified as derivative liabilities on the consolidated balance sheet, but not included in the table. Margin is collateral, typically cash, that the holder of a derivative instrument is required to deposit in order to transact on an exchange and to cover its potential losses with its broker or the exchange.

(c)Includes amounts for interest rate swaps of $31 million in current assets and $75 million in noncurrent assets. At December 31, 2022, the Clean Energy Businesses had interest rate swaps with notional amounts of $982 million. The expiration dates of the swaps ranged from 2025-2041.

(d)Amounts represent 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. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note W and Note X.

Offsetting of Liabilities

The fair values of the Companies’ derivatives, including the offsetting of assets and liabilities, on the consolidated balance sheet at December 31, 2023 and 2022 were:


(Millions of Dollars)	2023				2022
Balance Sheet Location	Gross Amounts of Recognized Assets/ (Liabilities)	Gross Amounts Offset	Net Amounts of Assets/(Liabilities) (a)		Gross Amounts of Recognized Assets/ (Liabilities)	Gross Amounts Offset	Net Amounts of Assets/(Liabilities) (a)
Con Edison
Fair value of derivative assets
Current	$83	$(38)	$45	(b)	$378	$(332)	$46	(b)
Noncurrent	77	(29)	48		193	(108)	85
Total fair value of derivative assets held and used	$160	$(67)	$93		$571	$(440)	$131
Current - assets held for sale (d)	—	—	—		93	(8)	85	(c)
Noncurrent - assets held for sale (d)	—	—	—		83	11	94	(c)
Total fair value of derivative assets	$160	$(67)	$93		$747	$(437)	$310
Fair value of derivative liabilities
Current	$(230)	$52	$(178)	(b)	$(198)	$166	$(32)	(b)
Noncurrent	(154)	33	(121)		(49)	36	(13)
Total fair value of derivative liabilities held and used	$(384)	$85	$(299)		$(247)	$202	$(45)
Current - liabilities held for sale (d)	—	—	—		(31)	6	(25)
Noncurrent - liabilities held for sale (d)	—	—	—		(3)	(8)	(11)
Total fair value of derivative liabilities	$(384)	$85	$(299)		$(281)	$200	$(81)
Net fair value derivative assets/(liabilities)	$(224)	$18	$(206)		$466	$(237)	$229
CECONY
Fair value of derivative assets
Current	$78	$(35)	$43	(b)	$350	$(312)	$38	(b)
Noncurrent	76	(27)	49		176	(96)	80
Total fair value of derivative assets	$154	$(62)	$92		$526	$(408)	$118
Fair value of derivative liabilities
Current	$(217)	$48	$(169)	(b)	$(189)	$160	$(29)
Noncurrent	(139)	31	(108)		(43)	34	(9)
Total fair value of derivative liabilities	$(356)	$79	$(277)		$(232)	$194	$(38)
Net fair value derivative assets/(liabilities)	$(202)	$17	$(185)		$294	$(214)	$80

Realized and Unrealized Gains or Losses on Commodity Derivatives

The following table presents the realized and unrealized gains or losses on derivatives that have been deferred or recognized in earnings for the years ended December 31, 2023 and 2022:


		Con Edison		CECONY
(Millions of Dollars)	Balance Sheet Location	2023	2022	2023	2022
Pre-tax gains/(losses) deferred in accordance with accounting rules for regulated operations:
Current	Regulatory liabilities	$(236)	$168	$(216)	$155
Noncurrent	Regulatory liabilities	(96)	83	(81)	75
Total deferred gains/(losses)		$(332)	$251	$(297)	$230
Current	Regulatory assets	$(85)	$(43)	$(76)	$(44)
Current	Recoverable energy costs	(563)	408	(533)	372
Noncurrent	Regulatory assets	(132)	19	(122)	19
Total deferred or recognized gains/(losses)		$(780)	$384	$(731)	$347
Net deferred or recognized gains/(losses) (a)		$(1,112)	$635	$(1,028)	$577
	Income Statement Location
Pre-tax gain/(loss) recognized in income
	Gas purchased for resale	$4	$5	$—	$—
	Non-utility revenue	17	—	—	—
	Other operations and maintenance expense	—	4	—	4
	Other interest expense (b)	5	159	—	—
Total pre-tax gain/(loss) recognized in income		$26	$168	$—	$4

(a) Unrealized net deferred gains on electric and gas derivatives for the Utilities decreased as a result of lower electric and gas commodity prices during the year ended December 31, 2023. Upon settlement, short-term deferred derivative losses generally increase the recoverable costs of electric and gas purchases.

(b) Comprised of amounts related to interest rate swaps of the Clean Energy Businesses. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note W and Note X.

Hedged Volume of Derivative Transactions

The following table presents the hedged volume of Con Edison’s and CECONY’s commodity derivative transactions at December 31, 2023:


	Electric Energy (MWh) (a)(b)	Capacity (MW) (a)	Natural Gas (Dt) (a)(b)	Refined Fuels (gallons)
Con Edison	34,892,535	44,400	325,690,000	3,780,000
CECONY	32,315,225	34,500	306,700,000	3,780,000

(a)Volumes are reported net of long and short positions, except natural gas collars where the volumes of long positions are reported.

(b)Excludes electric congestion and gas basis swap contracts which are associated with electric and gas contracts and hedged volumes.

Aggregate Fair Value of Companies' Derivative Instruments with Credit-Risk-Related Contingent Features

The following table presents the aggregate fair value of the Companies’ derivative instruments with credit-risk-related contingent features that are in a net liability position, the collateral posted for such positions and the additional collateral that would have been required to be posted had the lowest applicable credit rating been reduced one level and to below investment grade at December 31, 2023:


(Millions of Dollars)	Con Edison (a)	CECONY (a)
Aggregate fair value – net liabilities	$302	$280
Collateral posted	280	280
Additional collateral (b) (downgrade one level from current ratings)	41	24
Additional collateral (b)(c) (downgrade to below investment grade from current ratings)	147	117

(a)Non-derivative transactions for the purchase and sale of electricity and gas and qualifying derivative instruments, that have been designated as normal purchases or normal sales, are excluded from the table. These transactions primarily include purchases of electricity from independent system operators. In the event the Utilities are no longer extended unsecured credit for such purchases, the Companies would be required to post additional collateral of $3 million at December 31, 2023. For certain other such non-derivative transactions, the Companies could be required to post collateral under certain circumstances, including in the event counterparties had reasonable grounds for insecurity.

(b)The Companies measure the collateral requirements by taking into consideration the fair value amounts of derivative instruments that contain credit-risk-related contingent features that are in a net liability position plus amounts owed to counterparties for settled transactions and amounts required by counterparties for minimum financial security. The fair value amounts represent unrealized losses, net of any unrealized gains where the Companies have a legally enforceable right to offset.

(c)Derivative instruments that are net assets have been excluded from the table. At December 31, 2023, if Con Edison had been downgraded to below investment grade, it would have been required to post additional collateral for such derivative instruments of $16 million.

- Definition

Tabular disclosure of credit derivatives which includes information by sellers of credit derivatives, about each credit derivative, or each group of similar credit derivatives, including (a) the nature of the credit derivative - its term, how it arose, the events or circumstances that would require the seller to perform under the credit derivative, and the current status of the payment/performance risk of the credit derivative; (b) the maximum potential amount of future payments (undiscounted) the seller could be required to make under the credit derivative; (c) the current fair value of the credit derivative; and (d) the nature of any recourse provisions under the credit derivative, and any assets held either as collateral or by third parties. A credit derivative is a derivative instrument (1) in which one or more of its underlyings are related to the credit risk of a specified entity (or a group of entities) or an index based on the credit risk of a group of entities and (2) that exposes the seller to potential loss from credit-risk-related events specified in the contract. Examples of credit derivatives within the scope of this paragraph include, but are not limited to, credit default swaps, credit spread options, and credit index products; also includes a hybrid instrument that has an embedded credit derivative (for example, but not limited to, a credit-linked note).

+ References + Details

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

+ References + Details