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

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

 

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

Service cost

   $ 19      $ 23      $ 26      $ 15      $ 18      $ 21   

Interest cost on accumulated other postretirement benefit obligation

     60        54        73        52        46        63   

Expected return on plan assets

     (77 )      (77 )      (85 )      (68 )      (68 )      (75 ) 

Recognition of net actuarial loss

     57        65        98        51        57        87   

Recognition of prior service cost

     (19 )      (27 )      (21 )      (15 )      (23 )      (18 ) 

Recognition of transition obligation

     -        -        2        -        -        2   

NET PERIODIC POSTRETIREMENT BENEFIT COST

   $ 40      $ 38      $ 93      $ 35      $ 30      $ 80   

Cost capitalized

     (15 )      (15 )      (32 )      (14 )      (12 )      (28 ) 

Reconciliation to rate level

     10        58        20        2        50        16   

Cost charged to operating expenses

   $ 35      $ 81      $ 81      $ 23      $ 68      $ 68   
Schedule of Funded Status

The funded status of the programs at December 31, 2014, 2013 and 2012 were as follows:

 

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

CHANGE IN BENEFIT OBLIGATION

            

Benefit obligation at beginning of year

   $ 1,395      $ 1,454      $ 1,756      $ 1,198      $ 1,238      $ 1,511   

Service cost

     19        23        26        15        18        21   

Interest cost on accumulated postretirement benefit obligation

     60        54        73        52        46        63   

Amendments

     (12 )      -        (127 )      -        -        (89 ) 

Net actuarial loss/(gain)

     47        (42 )      (175 )      28        (20 )      (178 ) 

Benefits paid and administrative expenses

     (134 )      (136 )      (146 )      (125 )      (126 )      (134 ) 

Participant contributions

     36        38        37        35        38        36   

Medicare prescription subsidy

     -        4        10        -        4        8   

BENEFIT OBLIGATION AT END OF YEAR

   $ 1,411      $ 1,395      $ 1,454      $ 1,203      $ 1,198      $ 1,238   

CHANGE IN PLAN ASSETS

            

Fair value of plan assets at beginning of year

   $ 1,113      $ 1,047      $ 947      $ 977      $ 922      $ 840   

Actual return on plan assets

     59        153        124        54        134        109   

Employer contributions

     7        9        83        7        9        71   

EGWP payments

     12        8        -        11        7        -   

Participant contributions

     36        38        37        35        38        36   

Benefits paid

     (143 )      (142 )      (144 )      (134 )      (133 )      (134 ) 

FAIR VALUE OF PLAN ASSETS AT END OF YEAR

   $ 1,084      $ 1,113      $ 1,047      $ 950      $ 977      $ 922   

FUNDED STATUS

   $ (327 )    $ (282 )    $ (407 )    $ (253 )    $ (221 )    $ (316 ) 

Unrecognized net loss

   $ 78      $ 70      $ 251      $ 45      $ 54      $ 197   

Unrecognized prior service costs

     (71 )      (78 )      (105 )      (46 )      (61 )      (84 ) 
Schedule of Actuarial Assumptions

The actuarial assumptions were as follows:

 

     2014     2013     2012  

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

      

Discount Rate

      

CECONY

     3.75 %      4.50 %      3.75 % 

O&R

     3.85 %      4.75 %      4.05 % 

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

      

Discount Rate

      

CECONY

     4.50 %      3.75 %      4.55 % 

O&R

     4.75 %      4.05 %      4.55 % 

Expected Return on Plan Assets

     7.75 %      7.75 %      8.50 % 
Schedule of Change of Assumed Health Care Cost Trend Rate

A one-percentage point change in the assumed health care cost trend rate would have the following effects at December 31, 2015:

 

     Con Edison     CECONY  
     1-Percentage-Point  
(Millions of Dollars)   Increase     Decrease     Increase     Decrease  

Effect on accumulated other postretirement benefit obligation

   $ (21 )    $ 40      $ (43 )    $ 57   

Effect on service cost and interest cost components for 2014

     (2 )      1        (4 )      3   
Schedule of Expected Benefit Payments

Based on current assumptions, the Companies expect to make the following benefit payments over the next ten years, net of receipt of governmental subsidies:

 

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

BENEFIT PAYMENTS

                 

Con Edison

   $ 99       $ 95       $ 94       $ 92       $ 89       $ 419   

CECONY

     89         85         84         82         79         364   
Schedule of Plan Assets Allocations

The asset allocations for CECONY’s other postretirement benefit plans 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

   57% - 73%     59 %      61 %      62%   

Debt Securities

   26% - 44%     41 %      39 %      38%   

Total

   100%                 100 %      100 %      100%   
Schedule of Fair Values of Plan Assets

The fair values of the plan assets at December 31, 2014 by asset category as defined by the accounting rules for fair value measurements (see Note P) are as follows:

 

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

Equity(a)

   $ -      $ 428      $ -      $ 428   

Other Fixed Income Debt(b)

     -        286        -        286   

Cash and Cash Equivalents(c)

     -        11        -        11   

Total investments

   $ -      $ 725      $ -      $ 725   

Funds for retiree health benefits(d)

     184        131        43        358   

Investments(including funds for retiree health benefits)

   $ 184      $ 856      $ 43      $ 1,083   

Pending activities(e)

                             1   

Total fair value of plan net assets

                           $ 1,084   

 

(a) Equity includes a passively managed commingled index fund benchmarked to the MSCI All Country World Index.
(b) Other Fixed Income Debt includes a passively managed commingled index fund benchmarked to the Barclays Capital Aggregate Index.
(c) Cash and Cash Equivalents include short term investments and money markets.
(d) 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 E.
(e) 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 plan assets at December 31, 2013 by asset category (see Note P) are as follows:

 

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

Equity(a)

   $ -      $ 450      $ -      $ 450   

Other Fixed Income Debt(b)

     -        286        -        286   

Cash and Cash Equivalents(c)

     -        7        -        7   

Total investments

   $ -      $ 743      $ -      $ 743   

Funds for retiree health benefits(d)

     185        145        42        372   

Investments(including funds for retiree health benefits)

   $ 185      $ 888      $ 42      $ 1,115   

Pending activities(e)

                             (2 ) 

Total fair value of plan net assets

                           $ 1,113   

 

(a) Equity includes a passively managed commingled index fund benchmarked to the MSCI All Country World Index.
(b) Other Fixed Income Debt includes a passively managed commingled index fund benchmarked to the Barclays Capital Aggregate Index.
(c) Cash and Cash Equivalents include short term investments and money markets.
(d) 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 E.
(e) 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

    

Transfers

In/(Out) of

Level 3

    

Ending

Balance as of

December 31,

2014

  

Total investments

   $ -      $ -      $ -      $ -      $ -      $ -   

Funds for retiree health benefits

     42        1        -        -        -        43   

Investments (including funds for retiree health benefits)

   $ 42      $ 1      $ -      $ -      $ -      $ 43   

 

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

    

Transfers

In/(Out) of

Level 3

    

Ending

Balance as of

December 31,

2013

  

Total investments

   $ -      $ -      $ -      $ -      $ -      $ -   

Funds for retiree health benefits

     31        3        -        8        -        42   

Investments (including funds for retiree health benefits)

   $ 31      $ 3      $ -      $ 8      $ -      $ 42