Pension Benefits

9 Months Ended

Sep. 30, 2014

Pension Benefits

Note E — Pension Benefits

Net Periodic Benefit Cost

The components of the Companies’ net periodic benefit costs for the three and nine months ended September 30, 2014 and 2013 were as follows:

	For the Three Months Ended September 30,
	Con Edison						CECONY
(Millions of Dollars)	2014			2013			2014			2013
Service cost – including administrative expenses	$	57		$	67		$	53		$	62
Interest cost on projected benefit obligation		143			134			134			126
Expected return on plan assets		(208	)		(187	)		(198	)		(178	)
Recognition of net actuarial loss		154			208			146			197
Recognition of prior service costs		1			1			1			1
NET PERIODIC BENEFIT COST	$	147		$	223		$	136		$	208
Amortization of regulatory asset		1			1			1			1
TOTAL PERIODIC BENEFIT COST	$	148		$	224		$	137		$	209
Cost capitalized		(57	)		(86	)		(54	)		(78	)
Reconciliation to rate level		30			(31	)		28			(34	)
Cost charged to operating expenses	$	121		$	107		$	111		$	97

	For the Nine Months Ended September 30,
	Con Edison						CECONY
(Millions of Dollars)	2014			2013			2014			2013
Service cost – including administrative expenses	$	170		$	200		$	158		$	186
Interest cost on projected benefit obligation		429			403			402			377
Expected return on plan assets		(624	)		(563	)		(592	)		(534	)
Recognition of net actuarial loss		464			624			439			591
Recognition of prior service costs		3			4			2			3
NET PERIODIC BENEFIT COST	$	442		$	668		$	409		$	623
Amortization of regulatory asset		2			2			2			2
TOTAL PERIODIC BENEFIT COST	$	444		$	670		$	411		$	625
Cost capitalized		(166	)		(256	)		(156	)		(241	)
Reconciliation to rate level		86			(55	)		78			(56	)
Cost charged to operating expenses	$	364		$	359		$	333		$	328

Contributions

The Companies made contributions to the pension plan during 2014 of $564 million (of which $524 million was contributed by CECONY). The Companies’ policy is to fund their accounting cost to the extent tax deductible. During the first nine months of 2014, CECONY also funded $13 million for the non-qualified supplemental plans.

Mortality Table Revision

In October 2014, the Society of Actuaries issued revised mortality tables for use in estimating pension and other postretirement benefit plan obligations, accounting costs and required contribution amounts. The new mortality tables indicate substantial life expectancy improvements since the last tables published in 2000 (RP 2000). These improvements are expected to result in significant increases in future pension and other postretirement benefit plan obligations, accounting costs, and required contribution amounts for many plan sponsors. The Companies are currently evaluating the impact of the revised mortality tables on the December 31, 2014 plan obligations, future accounting costs and expected plan contributions. The Utilities, under their current New York rate plans, defer as a regulatory asset or liability, as the case may be, the differences between the actual level of expenses for pension and other postretirement benefits and amounts for those expenses reflected in rates.

CECONY [Member]

Pension Benefits

Note E — Pension Benefits

Net Periodic Benefit Cost

The components of the Companies’ net periodic benefit costs for the three and nine months ended September 30, 2014 and 2013 were as follows:

	For the Three Months Ended September 30,
	Con Edison						CECONY
(Millions of Dollars)	2014			2013			2014			2013
Service cost – including administrative expenses	$	57		$	67		$	53		$	62
Interest cost on projected benefit obligation		143			134			134			126
Expected return on plan assets		(208	)		(187	)		(198	)		(178	)
Recognition of net actuarial loss		154			208			146			197
Recognition of prior service costs		1			1			1			1
NET PERIODIC BENEFIT COST	$	147		$	223		$	136		$	208
Amortization of regulatory asset		1			1			1			1
TOTAL PERIODIC BENEFIT COST	$	148		$	224		$	137		$	209
Cost capitalized		(57	)		(86	)		(54	)		(78	)
Reconciliation to rate level		30			(31	)		28			(34	)
Cost charged to operating expenses	$	121		$	107		$	111		$	97

	For the Nine Months Ended September 30,
	Con Edison						CECONY
(Millions of Dollars)	2014			2013			2014			2013
Service cost – including administrative expenses	$	170		$	200		$	158		$	186
Interest cost on projected benefit obligation		429			403			402			377
Expected return on plan assets		(624	)		(563	)		(592	)		(534	)
Recognition of net actuarial loss		464			624			439			591
Recognition of prior service costs		3			4			2			3
NET PERIODIC BENEFIT COST	$	442		$	668		$	409		$	623
Amortization of regulatory asset		2			2			2			2
TOTAL PERIODIC BENEFIT COST	$	444		$	670		$	411		$	625
Cost capitalized		(166	)		(256	)		(156	)		(241	)
Reconciliation to rate level		86			(55	)		78			(56	)
Cost charged to operating expenses	$	364		$	359		$	333		$	328

Contributions

The Companies made contributions to the pension plan during 2014 of $564 million (of which $524 million was contributed by CECONY). The Companies’ policy is to fund their accounting cost to the extent tax deductible. During the first nine months of 2014, CECONY also funded $13 million for the non-qualified supplemental plans.

Mortality Table Revision

In October 2014, the Society of Actuaries issued revised mortality tables for use in estimating pension and other postretirement benefit plan obligations, accounting costs and required contribution amounts. The new mortality tables indicate substantial life expectancy improvements since the last tables published in 2000 (RP 2000). These improvements are expected to result in significant increases in future pension and other postretirement benefit plan obligations, accounting costs, and required contribution amounts for many plan sponsors. The Companies are currently evaluating the impact of the revised mortality tables on the December 31, 2014 plan obligations, future accounting costs and expected plan contributions. The Utilities, under their current New York rate plans, defer as a regulatory asset or liability, as the case may be, the differences between the actual level of expenses for pension and other postretirement benefits and amounts for those expenses reflected in rates.