Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2011

Fair Value Measurements

Assets And Liabilities Measured At Fair Value On A Recurring Basis

Assets and liabilities measured at fair value on a recurring basis as of June 30, 2011 are summarized below.

	Level 1				Level 2				Level 3						Netting Adjustments(4)						Total
(Millions of Dollars)	Con Edison		CECONY		Con Edison		CECONY		Con Edison			CECONY			Con Edison			CECONY			Con Edison			CECONY
Derivative assets:
Commodity(1)	$	1	$	—	$	56	$	24	$	100		$	18		$	(42	)	$	4		$	115		$	46
Other assets(3)		72		72		—		—		106			96			—			—			178			168
Total	$	73	$	72	$	56	$	24	$	206		$	114		$	(42	)	$	4		$	293		$	214
Derivative liabilities:
Commodity	$	4	$	1	$	144	$	93	$	130		$	23		$	(142	)	$	(52	)	$	136		$	65
Transfer in(5)(6)		—		—		5		5		—			—			—			—			5			5
Transfer out(5)(6)		—		—		—		—		(5	)		(5	)		—			—			(5	)		(5	)
Commodity(1)	$	4	$	1	$	149	$	98	$	125		$	18		$	(142	)	$	(52	)	$	136		$	65
Interest rate contract(2)		—		—		—		—		10			—			—			—			10			—
Total	$	4	$	1	$	149	$	98	$	135		$	18		$	(142	)	$	(52	)	$	146		$	65

(1) A significant portion of the commodity derivative contracts categorized in Level 3 is valued using either an industry acceptable model or an internally developed model with observable inputs. The models also include some less readily observable inputs resulting in the classification of the entire contract as Level 3. See Note I.

(2) See Note I.

(3) Other assets are comprised of assets such as life insurance contracts within the Deferred Income Plan and Supplemental Retirement Income Plans, held in rabbi trusts.

(4) 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.

(5) The Companies' policy is to recognize transfers into and transfers out of the levels at the end of the reporting period.

(6) Transferred from Level 3 to Level 2 because of availability of observable market data due to decrease in the terms of certain contracts from beyond one year as of December 31, 2010 to less than one year as of June 30, 2011.

Assets and liabilities measured at fair value on a recurring basis as of December 31, 2010 are summarized below.

	Level 1				Level 2						Level 3						Netting Adjustments(4)						Total
(Millions of Dollars)	Con Edison		CECONY		Con Edison			CECONY			Con Edison			CECONY			Con Edison			CECONY			Con Edison			CECONY
Derivative assets:
Commodity(1)	$	2	$	1	$	72		$	21		$	144		$	13		$	(112	)	$	13		$	106		$	48
Other assets(3)		65		64		—			—			101			92			—			—			166			156
Total	$	67	$	65	$	72		$	21		$	245		$	105		$	(112	)	$	13		$	272		$	204
Derivative liabilities:
Commodity	$	4	$	2	$	270		$	177		$	205		$	12		$	(288	)	$	(91	)	$	191		$	100
Transfer in(5)(6)(7)		—		—		(36	)		(36	)		(9	)		(9	)		—			—			(45	)		(45	)
Transfer out(5)(6)(7)		—		—		9			9			36			36			—			—			45			45
Commodity(1)	$	4	$	2	$	243		$	150		$	232		$	39		$	(288	)	$	(91	)	$	191		$	100
Interest rate contract(2)		—		—		—			—			10			—			—			—			10			—
Total	$	4	$	2	$	243		$	150		$	242		$	39		$	(288	)	$	(91	)	$	201		$	100

(1) A significant portion of the commodity derivative contracts categorized in Level 3 is valued using either an industry acceptable model or an internally developed model with observable inputs. The models also include some less readily observable inputs resulting in the classification of the entire contract as Level 3. See Note O to the financial statements in Item 8 of the Form 10-K.

(2) See Note O to the financial statements in Item 8 of the Form 10-K.

(3) Other assets are comprised of assets such as life insurance contracts within the Deferred Income Plan and Supplemental Retirement Income Plans, held in rabbi trusts.

(4) 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.

(5) The Companies' policy is to recognize transfers into and transfers out of the levels at the end of the reporting period.

(6) Transferred from Level 2 to Level 3 because of reassessment of the levels in the fair value hierarchy within which certain inputs fall.

(7) Transferred from Level 3 to Level 2 because of availability of observable market data due to decrease in the terms of certain contracts from beyond one year as of December 31, 2009 to less than one year as of December 31, 2010.

Reconciliation Of The Beginning And Ending Net Balances For Assets And Liabilities Measured At Level 3 Fair Value

	For the Three Months Ended June 30, 2011
				Total Gains/(Losses)— Realized and Unrealized
(Millions of Dollars)	Beginning Balance as of April 1, 2011			Included in Earnings			Included in Regulatory Assets and Liabilities		Purchases		Issuances		Sales			Settlements			Transfer In/Out of Level 3		Ending Balance as of June 30, 2011
Con Edison
Derivatives:
Commodity	$	(31	)	$	(14	)	$	14	$	5	$	—	$	(2	)	$	3		$	—	$	(25	)
Interest rate contract		(10	)		(1	)		—		—		—		—			1			—		(10	)
Other assets(1)		105			1			—		—		—		—			—			—		106
Total	$	64		$	(14	)	$	14	$	5	$	—	$	(2	)	$	4		$	—	$	71
CECONY
Derivatives:
Commodity	$	2		$	(1	)	$	2	$	1	$	—	$	—		$	(4	)	$	—	$	—
Other assets(1)		95			1			—		—		—		—			—			—		96
Total	$	97		$	—		$	2	$	1	$	—	$	—		$	(4	)	$	—	$	96

(1) Amounts included in earnings are reported in investment and other income on the consolidated income statement.

	For the Six Months Ended June 30, 2011
				Total Gains/(Losses)— Realized and Unrealized
(Millions of Dollars)	Beginning Balance as of January 1, 2011			Included in Earnings			Included in Regulatory Assets and Liabilities		Purchases		Issuances		Sales			Settlements			Transfer In/Out of Level 3		Ending Balance as of June 30, 2011
Con Edison
Derivatives:
Commodity	$	(88	)	$	2		$	45	$	14	$	—	$	(4	)	$	1		$	5	$	(25	)
Interest rate contract		(10	)		(2	)		—		—		—		—			2			—		(10	)
Other assets(1)		101			3			2		—		—		—			—			—		106
Total	$	3		$	3		$	47	$	14	$	—	$	(4	)	$	3		$	5	$	71
CECONY
Derivatives:
Commodity	$	(26	)	$	(3	)	$	20	$	11	$	—	$	—		$	(7	)	$	5	$	—
Other assets(1)		92			3			1		—		—		—			—			—		96
Total	$	66		$	—		$	21	$	11	$	—	$	—		$	(7	)	$	5	$	96

(1) Amounts included in earnings are reported in investment and other income on the consolidated income statement.

The table listed below provides a reconciliation of the beginning and ending net balances for assets and liabilities measured at fair value for the three and six months ended June 30, 2010 and classified as Level 3 in the fair value hierarchy below.

	For the Three Months Ended June 30, 2010
				Total Gains/(Losses) — Realized and Unrealized
(Millions of Dollars)	Beginning Balance as of April 1, 2010			Included in Earnings			Included in Regulatory Assets and Liabilities			Purchases		Issuances		Sales			Settlements			Transfer In/Out of Level 3		Ending Balance as of June 30, 2010
Con Edison
Derivatives:
Commodity	$	(168	)	$	9		$	33		$	3	$	—	$	(2	)	$	6		$	18	$	(101	)
Interest rate contract		(11	)		(1	)		(1	)		—		—		—			1			—		(12	)
Other assets(1)		93			—			1			—		—		—			—			—		94
Total	$	(86	)	$	8		$	33		$	3	$	—	$	(2	)	$	7		$	18	$	(19	)
CECONY
Derivatives:
Commodity	$	(48	)	$	(2	)	$	3		$	1	$	—	$	—		$	(2	)	$	18	$	(30	)
Other assets(1)		84			—			1			—		—		—			—			—		85
Total	$	36		$	(2	)	$	4		$	1	$	—	$	—		$	(2	)	$	18	$	55

(1) Amounts included in earnings are reported in investment and other income on the consolidated income statement.

	For the Six Months Ended June 30, 2010
				Total Gains/(Losses)— Realized and Unrealized
(Millions of Dollars)	Beginning Balance as of January 1, 2010			Included in Earnings			Included in Regulatory Assets and Liabilities			Purchases		Issuances		Sales			Settlements			Transfer In/Out of Level 3		Ending Balance as of June 30, 2010
Con Edison
Derivatives:
Commodity	$	(59	)	$	(34	)	$	(40	)	$	3	$	—	$	(3	)	$	14		$	18	$	(101	)
Interest rate contract		(11	)		(2	)		(1	)		—		—		—			2			—		(12	)
Other assets(1)		92			—			2			—		—		—			—			—		94
Total	$	22		$	(36	)	$	(39	)	$	3	$	—	$	(3	)	$	16		$	18	$	(19	)
CECONY
Derivatives:
Commodity	$	(5	)	$	(7	)	$	(30	)	$	1	$	—	$	—		$	(7	)	$	18	$	(30	)
Other assets(1)		83			—			2			—		—		—			—			—		85
Total	$	78		$	(7	)	$	(28	)	$	1	$	—	$	—		$	(7	)	$	18	$	55

(1) Amounts included in earnings are reported in investment and other income on the consolidated income statement.