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Pension Benefits (Tables) (Pension Benefits [Member])
 12 Months Ended
Dec. 31, 2014
Pension Benefits [Member]
  
Net Periodic Benefit Costs

The components of the Companies’ total periodic benefit costs for 2014, 2013 and 2012 were as follows:

 

     Con Edison     CECONY  
(Millions of Dollars)       2014             2013             2012             2014             2013             2012      

Service cost – including administrative expenses

   $ 227      $ 267      $ 237      $ 211      $ 249      $ 220   

Interest cost on projected benefit obligation

     572        537        547        536        503        513   

Expected return on plan assets

     (832 )      (750 )      (705 )      (789 )      (713 )      (670 ) 

Recognition of net actuarial loss

     618        832        709        586        788        670   

Recognition of prior service costs

     4        5        8        2        4        6   

NET PERIODIC BENEFIT COST

   $ 589      $ 891      $ 796      $ 546      $ 831      $ 739   

Amortization of regulatory asset*

     2        2        2        2        2        2   

TOTAL PERIODIC BENEFIT COST

   $ 591      $ 893      $ 798      $ 548      $ 833      $ 741   

Cost capitalized

     (225 )      (348 )      (277 )      (212 )      (327 )      (260 ) 

Reconciliation to rate level

     118        (84 )      (8 )      108        (87 )      (12 ) 

Cost charged to operating expenses

   $ 484      $ 461      $ 513      $ 444      $ 419      $ 469   

 

* Relates to an increase in CECONY’s pension obligation of $45 million from a 1999 special retirement program.
Schedule of Funded Status

Funded Status

The funded status at December 31, 2014, 2013 and 2012 was as follows:

 

     Con Edison     CECONY  
(Millions of Dollars)   2014     2013     2012     2014     2013     2012  

CHANGE IN PROJECTED BENEFIT OBLIGATION

              

Projected benefit obligation at beginning of year

   $ 12,197      $ 13,406      $ 11,825      $ 11,429      $ 12,572      $ 11,072   

Service cost – excluding administrative expenses

     221        259        224        206        241        209   

Interest cost on projected benefit obligation

     572        537        547        536        503        513   

Net actuarial (gain)/loss

     2,641        (1,469 )      1,323        2,484        (1,388 )      1,255   

Plan amendments

     6        -        -        -        -        -   

Benefits paid

     (556 )      (536 )      (513 )      (518 )      (499 )      (477 ) 

PROJECTED BENEFIT OBLIGATION AT END OF YEAR

   $ 15,081      $ 12,197      $ 13,406      $ 14,137      $ 11,429      $ 12,572   

CHANGE IN PLAN ASSETS

              

Fair value of plan assets at beginning of year

   $ 10,755      $ 9,135      $ 7,800      $ 10,197      $ 8,668      $ 7,406   

Actual return on plan assets

     752        1,310        1,094        715        1,241        1,040   

Employer contributions

     578        879        785        535        819        729   

Benefits paid

     (556 )      (536 )      (513 )      (518 )      (499 )      (477 ) 

Administrative expenses

     (34 )      (33 )      (31 )      (32 )      (32 )      (30 ) 

FAIR VALUE OF PLAN ASSETS AT END OF YEAR

   $ 11,495      $ 10,755      $ 9,135      $ 10,897      $ 10,197      $ 8,668   

FUNDED STATUS

   $ (3,586 )    $ (1,442 )    $ (4,271 )    $ (3,240 )    $ (1,232 )    $ (3,904 ) 

Unrecognized net loss

   $ 4,888      $ 2,759      $ 5,594      $ 4,616      $ 2,617      $ 5,297   

Unrecognized prior service costs

     20        17        23        4        6        10   

Accumulated benefit obligation

     13,454        11,004        11,911        12,553        10,268        11,116   
Schedule of Assumptions

The actuarial assumptions were as follows:

 

     2014     2013     2012  

Weighted-average assumptions used to determine benefit obligations at December 31:

      

Discount rate

     3.90 %      4.80 %      4.10 % 

Rate of compensation increase

      

– CECONY

     4.25 %      4.35 %      4.35 % 

– O&R

     4.00 %      4.25 %      4.25 % 

Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31:

      

Discount rate

     4.80 %      4.10 %      4.70 % 

Expected return on plan assets

     8.00 %      8.00 %      8.00 % 

Rate of compensation increase

      

– CECONY

     4.35 %      4.35 %      4.35 % 

– O&R

     4.25 %      4.25 %      4.25 % 
Schedule of Expected Benefit Payments

Based on current assumptions, the Companies expect to make the following benefit payments over the next ten years:

 

(Millions of Dollars)   2015     2016     2017     2018     2019     2020-2024  

Con Edison

   $ 592      $ 615      $ 636      $ 658      $ 678      $ 3,642   

CECONY

     552        574        594        613        632        3,388   
Schedule of Plan Assets Allocations

The asset allocations for the pension plan at the end of 2014, 2013 and 2012, and the target allocation for 2015 are as follows:

 

    

Target

Allocation Range

     Plan Assets at December 31,  
Asset Category   2015     2014     2013     2012  

Equity Securities

     55% - 65%        58 %      60 %      60 % 

Debt Securities

     27% - 33%        32 %      30 %      31 % 

Real Estate

     8% - 12%        10 %      10 %      9 % 

Total

     100%        100 %      100 %      100 % 
Schedule of Fair Value of Plan Assets

The fair values of the pension plan assets at December 31, 2014 by asset category are as follows:

 

(Millions of Dollars)   Level 1     Level 2     Level 3     Total  

U.S. Equity(a)

   $ 3,168      $ -      $ -      $ 3,168   

International Equity(b)

     2,841        361        -        3,202   

Private Equity(c)

     -        -        114        114   

U.S. Government Issued Debt(d)

     -        2,113        -        2,113   

Corporate Bonds Debt(e)

     -        1,351        -        1,351   

Structured Assets Debt(f)

     -        4        -        4   

Other Fixed Income Debt(g)

     -        208        -        208   

Real Estate(h)

     -        -        1,137        1,137   

Cash and Cash Equivalents(i)

     188        477        -        665   

Futures(j)

     192        37        -        229   

Hedge Funds(k)

     -        -        224        224   

Total investments

   $ 6,389      $ 4,551      $ 1,475      $ 12,415   

Funds for retiree health benefits(l)

     (184 )      (131 )      (43 )      (358 ) 

Investments (excluding funds for retiree health benefits)

   $ 6,205      $ 4,420      $ 1,432      $ 12,057   

Pending activities(m)

                             (562 ) 

Total fair value of plan net assets

                           $ 11,495   

 

(a) U.S. Equity includes both actively- and passively-managed assets with investments in domestic equity index funds and actively-managed small-capitalization equities.
(b) International Equity includes international equity index funds and actively-managed international equities.
(c) Private Equity consists of global equity funds that are not exchange-traded.
(d) U.S. Government Issued Debt includes agency and treasury securities.
(e) Corporate Bonds Debt consists of debt issued by various corporations.
(f) Structured Assets Debt includes commercial-mortgage-backed securities and collateralized mortgage obligations.
(g) Other Fixed Income Debt includes municipal bonds, sovereign debt and regional governments.
(h) Real Estate investments include real estate funds based on appraised values that are broadly diversified by geography and property type.
(i) Cash and Cash Equivalents include short term investments, money markets, foreign currency and cash collateral.
(j) Futures consist of exchange-traded financial contracts encompassing U.S. Equity, International Equity and U.S. Government indices.
(k) Hedge Funds are within a commingled structure which invests in various hedge fund managers who can invest in all financial instruments.
(l) The Companies set aside funds for retiree health benefits through a separate account within the pension trust, as permitted under Section 401(h) of the Internal Revenue Code of 1986, as amended. In accordance with the Code, the plan’s investments in the 401(h) account may not be used for, or diverted to, any purpose other than providing health benefits for retirees. The net assets held in the 401(h) account are calculated based on a pro-rata percentage allocation of the net assets in the pension plan. The related obligations for health benefits are not included in the pension plan’s obligations and are included in the Companies’ other postretirement benefit obligation. See Note F.
(m) Pending activities include security purchases and sales that have not settled, interest and dividends that have not been received and reflects adjustments for available estimates at year end.

The fair values of the pension plan assets at December 31, 2013 by asset category are as follows:

 

(Millions of Dollars)   Level 1     Level 2     Level 3     Total  

U.S. Equity(a)

   $ 3,057      $ -      $ -      $ 3,057   

International Equity(b)

     2,303        871        -        3,174   

Private Equity(c)

     -        -        67        67   

U.S. Government Issued Debt(d)

     -        1,855        -        1,855   

Corporate Bonds Debt(e)

     -        1,151        -        1,151   

Structured Assets Debt(f)

     -        4        -        4   

Other Fixed Income Debt(g)

     -        150        -        150   

Real Estate(h)

     -        -        1,062        1,062   

Cash and Cash Equivalents(i)

     127        558        -        685   

Futures(j)

     348        -        -        348   

Hedge Funds(k)

     -        -        206        206   

Total investments

   $ 5,835      $ 4,589      $ 1,335      $ 11,759   

Funds for retiree health benefits(l)

     (185 )      (145 )      (42 )      (372 ) 

Investments(excluding funds for retiree health benefits)

   $ 5,650      $ 4,444      $ 1,293      $ 11,387   

Pending activities(m)

                             (632 ) 

Total fair value of plan net assets

                           $ 10,755   

 

(a) U.S. Equity includes both actively- and passively-managed assets with investments in domestic equity index funds and actively-managed small-capitalization equities.
(b) International Equity includes international equity index funds and actively-managed international equities.
(c) Private Equity consists of global equity funds that are not exchange-traded.
(d) U.S. Government Issued Debt includes agency and treasury securities.
(e) Corporate Bonds Debt consists of debt issued by various corporations.
(f) Structured Assets Debt includes commercial-mortgage-backed securities and collateralized mortgage obligations.
(g) Other Fixed Income Debt includes municipal bonds, sovereign debt and regional governments.
(h) Real Estate investments include real estate funds based on appraised values that are broadly diversified by geography and property type.
(i) Cash and Cash Equivalents include short term investments, money markets, foreign currency and cash collateral.
(j) Futures consist of exchange-traded financial contracts encompassing U.S. Equity, International Equity and U.S. Government indices.
(k) Hedge Funds are within a commingled structure which invests in various hedge fund managers who can invest in all financial instruments.
(l) The Companies set aside funds for retiree health benefits through a separate account within the pension trust, as permitted under Section 401(h) of the Internal Revenue Code of 1986, as amended. In accordance with the Code, the plan’s investments in the 401(h) account may not be used for, or diverted to, any purpose other than providing health benefits for retirees. The net assets held in the 401(h) account are calculated based on a pro-rata percentage allocation of the net assets in the pension plan. The related obligations for health benefits are not included in the pension plan’s obligations and are included in the Companies’ other postretirement benefit obligation. See Note F.
(m) Pending activities include security purchases and sales that have not settled, interest and dividends that have not been received and reflects adjustments for available estimates at year end.
Reconciliation of Fair Value Balances for Net Assets

The table below provides a reconciliation of the beginning and ending net balances for assets at December 31, 2014 classified as Level 3 in the fair value hierarchy.

 

(Millions of Dollars)  

Beginning

Balance as of

January 1, 2014

    

Assets Still Held

at Reporting Date –

Unrealized Gains/

(Losses)

    

Assets Sold

During the

Year – Realized

Gains/(Losses)

    

Purchases

Sales and

Settlements

    

Transfer

In/(Out) of

Level 3

    

Ending

Balance as of

December 31,

2014

  

Real Estate

   $ 1,062      $ 86      $ 20      $ (31 )    $ -      $ 1,137   

Private Equity

     67        12        -        35        -        114   

Hedge Funds

     206        11        -        7        -        224   

Total investments

   $ 1,335      $ 109      $ 20      $ 11      $ -      $ 1,475   

Funds for retiree health benefits

     (42 )      (1 )      -        -        -        (43 ) 

Investments (excluding funds for retiree health benefits)

   $ 1,293      $ 108      $ 20      $ 11      $ -      $ 1,432   

 

The table below provides a reconciliation of the beginning and ending net balances for assets at December 31, 2013 classified as Level 3 in the fair value hierarchy.

 

(Millions of Dollars)  

Beginning

Balance as of

January 1, 2013

    

Assets Still Held

at Reporting Date –

Unrealized
Gains/(Losses)

    

Assets Sold

During the

Year – Realized

Gains/(Losses)

    

Purchases

Sales and

Settlements

    

Transfer

In/(Out) of

Level 3

    

Ending

Balance as of

December 31,

2013

  

Real Estate

   $ 833      $ 114      $ 1      $ 114      $ -      $ 1,062   

Private Equity

     20        5        -        42        -        67   

Hedge Funds

     -        6        -        200        -        206   

Total investments

   $ 853      $ 125      $ 1      $ 356      $ -      $ 1,335   

Funds for retiree health benefits

     (31 )      (3 )      -        (8 )      -        (42 ) 

Investments (excluding funds for retiree health benefits)

   $ 822      $ 122      $ 1      $ 348      $ -      $ 1,293   
Schedule of Employer Contribution to Defined Savings Plan

The Companies also offer a defined contribution savings plan that covers substantially all employees and made contributions to the plan as follows:

 

     For the Years Ended December 31,  
(Millions of Dollars)   2014     2013     2012  

Con Edison

   $ 32      $ 30      $ 23   

CECONY

     27        26        21