Pension Benefits

6 Months Ended

Jun. 30, 2011

Pension Benefits

Note D — Pension Benefits

Reference is made to Note E to the financial statements in Item 8 of the Form 10-K and Note D to the financial statement in Part I, Item 1 of the First Quarter Form 10-Q.

Net Periodic Benefit Cost

The components of the Companies' net periodic benefit costs for the three and six months ended June 30, 2011 and 2010 were as follows:

For the Three Months Ended June 30,
	Con Edison						CECONY
(Millions of Dollars)	2011			2010			2011			2010
Service cost – including administrative expenses	$	47		$	42		$	44		$	39
Interest cost on projected benefit obligation		140			139			131			130
Expected return on plan assets		(183	)		(176	)		(175	)		(167	)
Amortization of net actuarial loss		132			106			125			100
Amortization of prior service costs		2			2			2			2
NET PERIODIC BENEFIT COST	$	138		$	113		$	127		$	104
Amortization of regulatory asset		1			1			1			1
TOTAL PERIODIC BENEFIT COST	$	139		$	114		$	128		$	105
Cost capitalized		(48	)		(37	)		(45	)		(34	)
Cost deferred		(6	)		(33	)		(7	)		(32	)
Cost charged to operating expenses	$	85		$	44		$	76		$	39

	For the Six Months Ended June 30,
	Con Edison						CECONY
(Millions of Dollars)	2011			2010			2011			2010
Service cost – including administrative expenses	$	94		$	84		$	88		$	78
Interest cost on projected benefit obligation		280			278			262			260
Expected return on plan assets		(366	)		(352	)		(350	)		(334	)
Amortization of net actuarial loss		264			212			250			200
Amortization of prior service costs		4			4			4			4
NET PERIODIC BENEFIT COST	$	276		$	226		$	254		$	208
Amortization of regulatory asset		1			1			1			1
TOTAL PERIODIC BENEFIT COST	$	277		$	227		$	255		$	209
Cost capitalized		(96	)		(78	)		(89	)		(73	)
Cost deferred		(57	)		(56	)		(59	)		(53	)
Cost charged to operating expenses	$	124		$	93		$	107		$	83

Expected Contributions

Based on estimates as of March 31, 2011, the Companies are not required under funding regulations and laws to make any contributions to the pension plan during 2011. The Companies' policy is to fund their accounting cost to the extent tax deductible. In 2011, Con Edison expects to make discretionary contributions to the pension plan of $533 million, of which CECONY contributed $491 million during the first six months of 2011. During the first six months of 2010, CECONY contributed $279 million to the pension plan. During the first six months of 2011, the Companies funded $11 million for the non-qualified supplemental pension plans.

CECONY [Member]

Pension Benefits

Note D — Pension Benefits

Reference is made to Note E to the financial statements in Item 8 of the Form 10-K and Note D to the financial statement in Part I, Item 1 of the First Quarter Form 10-Q.

Net Periodic Benefit Cost

The components of the Companies' net periodic benefit costs for the three and six months ended June 30, 2011 and 2010 were as follows:

	For the Three Months Ended June 30,
	Con Edison						CECONY
(Millions of Dollars)	2011			2010			2011			2010
Service cost – including administrative expenses	$	47		$	42		$	44		$	39
Interest cost on projected benefit obligation		140			139			131			130
Expected return on plan assets		(183	)		(176	)		(175	)		(167	)
Amortization of net actuarial loss		132			106			125			100
Amortization of prior service costs		2			2			2			2
NET PERIODIC BENEFIT COST	$	138		$	113		$	127		$	104
Amortization of regulatory asset		1			1			1			1
TOTAL PERIODIC BENEFIT COST	$	139		$	114		$	128		$	105
Cost capitalized		(48	)		(37	)		(45	)		(34	)
Cost deferred		(6	)		(33	)		(7	)		(32	)
Cost charged to operating expenses	$	85		$	44		$	76		$	39

	For the Six Months Ended June 30,
	Con Edison						CECONY
(Millions of Dollars)	2011			2010			2011			2010
Service cost – including administrative expenses	$	94		$	84		$	88		$	78
Interest cost on projected benefit obligation		280			278			262			260
Expected return on plan assets		(366	)		(352	)		(350	)		(334	)
Amortization of net actuarial loss		264			212			250			200
Amortization of prior service costs		4			4			4			4
NET PERIODIC BENEFIT COST	$	276		$	226		$	254		$	208
Amortization of regulatory asset		1			1			1			1
TOTAL PERIODIC BENEFIT COST	$	277		$	227		$	255		$	209
Cost capitalized		(96	)		(78	)		(89	)		(73	)
Cost deferred		(57	)		(56	)		(59	)		(53	)
Cost charged to operating expenses	$	124		$	93		$	107		$	83

Expected Contributions

Based on estimates as of March 31, 2011, the Companies are not required under funding regulations and laws to make any contributions to the pension plan during 2011. The Companies' policy is to fund their accounting cost to the extent tax deductible. In 2011, Con Edison expects to make discretionary contributions to the pension plan of $533 million, of which CECONY contributed $491 million during the first six months of 2011. During the first six months of 2010, CECONY contributed $279 million to the pension plan. During the first six months of 2011, the Companies funded $11 million for the non-qualified supplemental pension plans.