Derivative Instruments and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Offsetting of Liabilities

The fair values of the Companies’ derivatives including the offsetting of assets and liabilities on the consolidated balance sheet at March 31, 2024 and December 31, 2023 were:

(Millions of Dollars)	2024				2023
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	$127	$(46)	$81	(b)	$83	$(38)	$45	(b)
Noncurrent	71	(23)	48		77	(29)	48
Total fair value of derivative assets	$198	$(69)	$129		$160	$(67)	$93
Fair value of derivative liabilities
Current	$(164)	$58	$(106)	(b)	$(230)	$52	$(178)	(b)
Noncurrent	(123)	29	(94)		(154)	33	(121)
Total fair value of derivative liabilities	$(287)	$87	$(200)		$(384)	$85	$(299)
Net fair value derivative assets/(liabilities)	$(89)	$18	$(71)		$(224)	$18	$(206)
CECONY
Fair value of derivative assets
Current	$121	$(45)	$76	(b)	$78	$(35)	$43	(b)
Noncurrent	69	(22)	47		76	(27)	49
Total fair value of derivative assets	$190	$(67)	$123		$154	$(62)	$92
Fair value of derivative liabilities
Current	$(156)	$55	$(101)	(b)	$(217)	$48	$(169)
Noncurrent	(112)	27	(85)		(139)	31	(108)
Total fair value of derivative liabilities	$(268)	$82	$(186)		$(356)	$79	$(277)
Net fair value derivative assets/(liabilities)	$(78)	$15	$(63)		$(202)	$17	$(185)

(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 March 31, 2024, margin deposits for Con Edison ($7 million and $(7) million) were classified as derivative assets and derivative liabilities, respectively, and for CECONY ($6 million and $(2) million) were classified as derivative assets and derivative liabilities, respectively, on the consolidated balance sheet, but not included in the table. At December 31, 2023 margin deposits for Con Edison and CECONY of $7 million and $6 million 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. 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.

Offsetting of Assets

The fair values of the Companies’ derivatives including the offsetting of assets and liabilities on the consolidated balance sheet at March 31, 2024 and December 31, 2023 were:

(Millions of Dollars)	2024				2023
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	$127	$(46)	$81	(b)	$83	$(38)	$45	(b)
Noncurrent	71	(23)	48		77	(29)	48
Total fair value of derivative assets	$198	$(69)	$129		$160	$(67)	$93
Fair value of derivative liabilities
Current	$(164)	$58	$(106)	(b)	$(230)	$52	$(178)	(b)
Noncurrent	(123)	29	(94)		(154)	33	(121)
Total fair value of derivative liabilities	$(287)	$87	$(200)		$(384)	$85	$(299)
Net fair value derivative assets/(liabilities)	$(89)	$18	$(71)		$(224)	$18	$(206)
CECONY
Fair value of derivative assets
Current	$121	$(45)	$76	(b)	$78	$(35)	$43	(b)
Noncurrent	69	(22)	47		76	(27)	49
Total fair value of derivative assets	$190	$(67)	$123		$154	$(62)	$92
Fair value of derivative liabilities
Current	$(156)	$55	$(101)	(b)	$(217)	$48	$(169)
Noncurrent	(112)	27	(85)		(139)	31	(108)
Total fair value of derivative liabilities	$(268)	$82	$(186)		$(356)	$79	$(277)
Net fair value derivative assets/(liabilities)	$(78)	$15	$(63)		$(202)	$17	$(185)

(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 March 31, 2024, margin deposits for Con Edison ($7 million and $(7) million) were classified as derivative assets and derivative liabilities, respectively, and for CECONY ($6 million and $(2) million) were classified as derivative assets and derivative liabilities, respectively, on the consolidated balance sheet, but not included in the table. At December 31, 2023 margin deposits for Con Edison and CECONY of $7 million and $6 million 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. 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.

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 three months ended March 31, 2024 and 2023:

		For the Three Months Ended March 31,
		Con Edison		CECONY
(Millions of Dollars)	Balance Sheet Location	2024	2023	2024	2023
Pre-tax gains/(losses) deferred in accordance with accounting rules for regulated operations:
Current	Regulatory liabilities	$43	$(149)	$40	$(137)
Noncurrent	Regulatory liabilities	(2)	(126)	(2)	(111)
Total deferred gains/(losses)		$41	$(275)	$38	$(248)
Current	Regulatory assets	$67	$(16)	$63	$(12)
Current	Recoverable energy costs	(114)	(291)	(104)	(274)
Noncurrent	Regulatory assets	30	(133)	26	(130)
Total deferred gains/(losses)		$(17)	$(440)	$(15)	$(416)
Net deferred gains/(losses) (a)		$24	$(715)	$23	$(664)
	Income Statement Location
Pre-tax gains/(losses) recognized in income
	Gas purchased for resale	$—	$4	$—	$—
	Non-utility revenue	—	17	—	—
	Other operations and maintenance expense	1	—	1	—
	Other interest expense (b)	—	5	—	—
Total pre-tax gains/(losses) recognized in income		$1	$26	$1	$—

(a)Unrealized net deferred losses on electric and gas derivatives for the Utilities decreased as a result of higher electric and gas commodity prices during the three months ended March 31, 2024. 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 Q and Note R.

Hedged Volume of Derivative Transactions

The following table presents the hedged volume of Con Edison’s and CECONY’s commodity derivative transactions at March 31, 2024:

	Electric Energy (MWh) (a)(b)	Capacity  (MW-mos) (a)	Natural Gas (Dt) (a)(b)	Refined Fuels (gallons)
Con Edison	31,374,625	42,600	296,190,000	4,032,000
CECONY	28,801,875	33,600	278,560,000	4,032,000

(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 March 31, 2024:

(Millions of Dollars)	Con Edison (a)	CECONY (a)
Aggregate fair value – net liabilities	$164	$153
Collateral posted	255	255
Additional collateral (b) (downgrade one level from current ratings)	10	—
Additional collateral (b)(c) (downgrade to below investment grade from current ratings)	74	56

(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 $1 million of additional collateral at March 31, 2024. 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 March 31, 2024, if Con Edison had been downgraded to below investment grade, it would have been required to post additional collateral for such derivative instruments of $5 million.