Income Tax (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Components of Income Tax

The components of income tax are as follows:

	Con Edison									CECONY
(Millions of Dollars)	2012			2011			2010			2012			2011			2010
State
Current	$	29		$	56		$	23		$	53		$	53		$	13
Deferred		97			63			106			53			55			100
Federal
Current		(13	)		53			(144	)		110			43			(139	)
Deferred		493			434			569			318			413			527
Amortization of investment tax credits		(6	)		(6	)		(6	)		(5	)		(6	)		(6	)
Total charge to income tax expense	$	600		$	600		$	548		$	529		$	558		$	495

Schedule of Differences on Deferred Tax Assets and Liabilities

The tax effects of temporary differences, which gave rise to deferred tax assets and liabilities, are as follows:

	Con Edison						CECONY
(Millions of Dollars)	2012			2011			2012			2011
Deferred tax liabilities:
Depreciation	$	4,210		$	3,652		$	3,909		$	3,464
Regulatory asset – future income tax		2,061			1,971			1,962			1,891
Unrecognized pension and other postretirement costs		2,472			2,554			2,202			2,255
State income tax		1,060			920			897			811
Capitalized overheads		565			536			496			470
Pension		736			682			730			709
Investment tax credits		49			55			47			52
Other		931			743			528			467
Total deferred tax liabilities		12,084			11,113			10,771			10,119
Deferred tax assets:
Unrecognized pension and other postretirement costs		2,472			2,554			2,202			2,255
State income tax		382			336			357			309
Regulatory liability – future income tax		126			173			117			167
Other		1,028			753			836			624
Total deferred tax assets		4,008			3,816			3,512			3,355
Net deferred tax liabilities and investment tax credits	$	8,076		$	7,297		$	7,259		$	6,764
Deferred income taxes and investment tax credits – Noncurrent	$	8,372		$	7,563		$	7,452		$	6,921
Deferred tax assets – Current		(296	)		(266	)		(193	)		(157	)
Net deferred tax liabilities and investment tax credits	$	8,076		$	7,297		$	7,259		$	6,764

Schedule of Income Tax Reconciliation

Reconciliation of the difference between income tax expense and the amount computed by applying the prevailing statutory income tax rate to income before income taxes is as follows:

	Con Edison									CECONY
(% of Pre-tax income)	2012			2011			2010			2012			2011			2010
STATUTORY TAX RATE
Federal		35	%		35	%		35	%		35	%		35	%		35	%
Changes in computed taxes resulting from:
State income tax		4			5			5			4			5			5
Cost of removal		(4	)		(4	)		(4	)		(4	)		(4	)		(4	)
Other		(1	)		-			(1	)		(1	)		-			(1	)
Effective Tax Rate		34	%		36	%		35	%		34	%		36	%		35	%

Summary of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amounts of unrecognized tax benefits for Con Edison and CECONY follows:

	Con Edison									CECONY
(Millions of Dollars)	2012			2011			2010			2012			2011			2010
Balance at January 1	$	130		$	93		$	86		$	114		$	79		$	92
Additions based on tax positions related to the current year		12			76			5			11			74			4
Additions based on tax positions of prior years		-			4			67			-			3			49
Reductions for tax positions of prior years		(57	)		(43	)		(4	)		(52	)		(42	)		(4	)
Settlements		1			-			(61	)		1			-			(62	)
Balance at December 31	$	86		$	130		$	93		$	74		$	114		$	79