Derivative Instruments And Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2012

Derivative Instruments And Hedging Activities [Abstract]

Energy Price Hedging Fair Values

	Con Edison						CECONY
(Millions of Dollars)	2012			2011			2012			2011
Fair value of net derivative assets/(liabilities) – gross	$	(331	)	$	(249	)	$	(181	)	$	(144	)
Impact of netting of cash collateral		156			110			64			46
Fair value of net derivative assets/(liabilities) – net	$	(175	)	$	(139	)	$	(117	)	$	(98	)

Fair Values Of The Companies' Commodity Derivatives

(Millions of Dollars)	Fair Value of Commodity Derivatives (a) Balance Sheet Location	Con Edison			CECONY
Derivatives Asset
Current	Other current assets	$	179		$	20
Long-term	Other deferred charges and non-current assets		25			6
Total derivatives asset		$	204		$	26
Impact of netting			(134	)		—
Net derivatives asset		$	70		$	26
Derivatives Liability
Current	Fair value of derivative liabilities	$	433		$	149
Long-term	Fair value of derivative liabilities		102			58
Total derivatives liability		$	535		$	207
Impact of netting			(290	)		(64	)
Net derivatives liability		$	245		$	143

(a) Qualifying derivative contracts, which have been designated as normal purchases or normal sales contracts, are not reported at fair value under the accounting rules for derivatives and hedging and, therefore, are excluded from the table.

(Millions of Dollars)	Fair Value of Commodity Derivatives (a) Balance Sheet Location	Con Edison			CECONY
Derivatives Asset
Current	Other current assets	$	139		$	16
Long-term	Other deferred charges and non-current assets		26			14
Total derivatives asset		$	165		$	30
Impact of netting			(95	)		(6	)
Net derivatives asset		$	70		$	24
Derivatives Liability
Current	Fair value of derivative liabilities	$	331		$	127
Long-term	Fair value of derivative liabilities		83			48
Total derivatives liability		$	414		$	175
Impact of netting			(205	)		(53	)
Net derivatives liability		$	209		$	122

(a) Qualifying derivative contracts, which have been designated as normal purchases or normal sales contracts, are not reported at fair value under the accounting rules for derivatives and hedging and, therefore, are excluded from the table.

Changes In The Fair Values Of Commodity Derivatives

Realized and Unrealized Gains/(Losses) on Commodity Derivatives (a) Deferred or Recognized in Income for the Three Months Ended March 31, 2012
(Millions of Dollars)	Balance Sheet Location	Con Edison			CECONY
Pre-tax gains/(losses) deferred in accordance with accounting rules for regulated operations:
Current	Deferred derivative gains	$	1		$	1
Total deferred gains		$	1		$	1
Current	Deferred derivative losses	$	(28	)	$	(19	)
Current	Recoverable energy costs		(74	)		(56	)
Long-term	Regulatory assets		(18	)		(17	)
Total deferred losses		$	(120	)	$	(92	)
Net deferred losses		$	(119	)	$	(91	)
	Income Statement Location
Pre-tax loss recognized in income
	Purchased power expense	$	(86	)(b)	$	—
	Gas purchased for resale		(1	)		—
	Non-utility revenue		(3	)(b)		—
Total pre-tax loss recognized in income		$	(90	)	$	—

(a) Qualifying derivative contracts, which have been designated as normal purchases or normal sales contracts, are not reported at fair value under the accounting rules for derivatives and hedging and, therefore, are excluded from the table.

(b) For the three months ended March 31, 2012, Con Edison recorded in non-utility revenues and purchased power expense an unrealized pre-tax loss of $(4) million and $(27) million, respectively.

Realized and Unrealized Gains/(Losses) on Commodity Derivatives (a) Deferred or Recognized in Income for the Three Months Ended March 31, 2011
(Millions of Dollars)	Balance Sheet Location	Con Edison			CECONY
Pre-tax gains/(losses) deferred in accordance with accounting rules for regulated operations:
Current	Deferred derivative gains	$	6		$	5
Long-term	Regulatory liabilities		3			3
Total deferred gains		$	9		$	8
Current	Deferred derivative losses	$	44		$	35
Current	Recoverable energy costs		(49	)		(42	)
Long-term	Regulatory assets		17			11
Total deferred losses		$	12		$	4
Net deferred losses		$	21		$	12
	Income Statement Location
Pre-tax gain/(loss) recognized in income
	Purchased power expense	$	(21	)(b)	$	—
	Gas purchased for resale		(6	)		—
	Non-utility revenue		10	(b)		—
Total pre-tax gain/(loss) recognized in income		$	(17	)	$	—

(a) Qualifying derivative contracts, which have been designated as normal purchases or normal sales contracts, are not reported at fair value under the accounting rules for derivatives and hedging and, therefore, are excluded from the table.

(b) For the three months ended March 31, 2011, Con Edison recorded in non-utility revenues and purchased power expense an unrealized pre-tax gain/(loss) of $(13) million and $50 million, respectively.

Number Of Derivative Contracts By Commodity Type

	Electric Derivatives								Gas Derivatives
	Number of Energy Contracts (a)		MWhs (b)		Number of Capacity Contracts (a)		MWs (b)		Number of Contracts (a)		Dths (b)		Total Number of Contracts (a)
Con Edison		754		16,197,114		59		7,639		579		91,840,940		1,392
CECONY		141		3,771,625		—		—		441		84,940,000		582

(a) Qualifying derivative contracts, which have been designated as normal purchases or normal sales contracts, are not reported at fair value under the accounting rules for derivatives and hedging and, therefore, are excluded from the table.

(b) Volumes are reported net of long and short positions.

Aggregate Fair Value Of All Derivative Instruments With Credit-Risk-Related Contingent Features

(Millions of Dollars)	Con Edison (a)			CECONY (a)
Aggregate fair value – net liabilities	$	245		$	143
Collateral posted	$	64		$	51
Additional collateral (b) (downgrade one level from current ratings (c))	$	35		$	18
Additional collateral (b) (downgrade to below investment grade from current ratings (c))	$	225	(d)	$	106	(d)

(a) Non-derivative transactions for the purchase and sale of electricity and gas and qualifying derivative instruments, which 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 and Con Edison's competitive energy businesses were no longer extended unsecured credit for such purchases, the Companies would be required to post collateral, which at March 31, 2012, would have amounted to an estimated $39 million for Con Edison, including $9 million for CECONY. 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 liabilities 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 of setoff.

(c) The current ratings are Moody's, S&P and Fitch long-term credit rating of, as applicable, Con Edison (Baa1/BBB+/BBB+), CECONY (A3/A-/A-) or O&R (Baa1/A-/A-). Credit ratings assigned by rating agencies are expressions of opinions that are subject to revision or withdrawal at any time by the assigning rating agency.

(d) Derivative instruments that are net assets have been excluded from the table. At March 31, 2012, if Con Edison had been downgraded to below investment grade, it would have been required to post additional collateral for such derivative instruments of not more than $23 million.