Regulatory Matters (Tables)

3 Months Ended

Mar. 31, 2015

Regulatory assets and liabilities at March 31, 2015 and December 31, 2014 were comprised of the following items:


	Con Edison				CECONY
*(Millions of Dollars)*	2015		2014		2015		2014
Regulatory assets
Unrecognized pension and other postretirement costs	$	4,593	$	4,846	$	4,374	$	4,609
Future income tax		2,289		2,273		2,180		2,166
Environmental remediation costs		911		925		808		820
Deferred storm costs		287		319		196		224
Revenue taxes		223		219		211		208
Surcharge for New York State assessment		96		99		90		92
Pension and other postretirement benefits deferrals		61		66		35		42
Net electric deferrals		58		63		58		63
Unamortized loss on reacquired debt		56		57		53		55
Deferred derivative losses – noncurrent		44		25		40		23
Recoverable energy costs – noncurrent		42		19		42		17
O&R property tax reconciliation		40		36		—		—
O&R transition bond charges		25		27		—		—
Preferred stock redemption		27		27		27		27
Workers’ compensation		9		8		9		8
Other		145		147		128		127
Regulatory assets – noncurrent		8,906		9,156		8,251		8,481
Deferred derivative losses – current		55		97		51		92
Future income tax – current		10		10		—		—
Recoverable energy costs – current		1		41		—		40
Regulatory assets – current		66		148		51		132
Total Regulatory Assets	$	8,972	$	9,304	$	8,302	$	8,613
Regulatory liabilities
Allowance for cost of removal less salvage	$	614	$	598	$	514	$	499
Property tax reconciliation		297		295		297		295
Base rate change deferrals		153		155		153		155
Prudence proceeding		104		105		104		105
Pension and other postretirement benefit deferrals		85		46		64		37
Property tax refunds		76		87		76		87
Variable-rate tax-exempt debt – cost rate reconciliation		74		78		74		78
Net unbilled revenue deferrals		71		138		71		138
New York State income tax rate change		63		62		60		59
Carrying charges on repair allowance and bonus depreciation		52		58		50		57
World Trade Center settlement proceeds		36		41		36		41
Net utility plant reconciliations		21		21		21		20
Earnings sharing – electric		19		19		18		18
Unrecognized other postretirement costs		15		—		13		—
Other		212		290		177		248
Regulatory liabilities – noncurrent		1,892		1,993		1,728		1,837
Refundable energy costs – current		177		128		152		84
Revenue decoupling mechanism		30		30		30		30
Future income tax		25		24		24		24
Deferred derivative gains – current		8		5		6		4
Regulatory liabilities – current		240		187		212		142
Total Regulatory Liabilities	$	2,132	$	2,180	$	1,940	$	1,979

Electric [Member] | CECONY [Member]

Summary of Rate Plan

The following table contains a summary of the rate plan for 2016:


Effective period		January 2016 – December 2016
Base rate changes		None (a)
Amortizations to income of net regulatory (assets) liabilities		Additional $123 million of net regulatory liabilities (b)
Other revenue sources		Continued retention of $90 million of annual transmission congestion revenues
Revenue decoupling mechanism		Continued reconciliation of actual electric delivery revenues to those authorized in the rate plan
Recoverable energy costs		Continued current rate recovery of purchased power and fuel costs
Negative revenue adjustments		Continued potential for penalties of up to $400 million if certain performance targets are not met
Cost reconciliations		Continued reconciliation of expenses for pension and other postretirement benefits, variable-rate tax-exempt debt, major storms, property taxes (c), municipal infrastructure support, the impact of new laws and environmental remediation to amounts reflected in rates
Net utility plant reconciliations		Target levels reflected in rates are as follows: Transmission and distribution: $17,929 million Storm hardening: $268 million Other: $2,069 million
Average rate base		$18,282 million
Weighted average cost of capital (after-tax)		6.91 percent
Authorized return on common equity		9.0 percent
Earnings sharing		Most earnings above an annual earnings threshold of 9.6 percent are to be applied to reduce regulatory assets for environmental remediation and other costs
Cost of long-term debt		5.09 percent
Common equity ratio		48 percent

(a)

The impact of 2014 and 2015 base rate changes under the current electric rate plan will continue to be deferred. $249 million of annual revenues collected from electric customers will continue to be subject to potential refund following NYSPSC staff review of certain costs. Revenues will continue to include $21 million as funding for major storm reserve.

(b)

The Joint Proposal also provides for continued annual amortization of $107 million of the regulatory asset for deferred Superstorm Sandy and other major storm costs and recommends that the costs recoverable from customers be reduced by $4 million, the costs no longer be subject to NYSPSC staff review and the recovery of the costs no longer be subject to refund.

(c)	Deferrals for property taxes will continue to be limited to 90 percent of the difference from amounts reflected in rates, subject to an annual maximum for the remaining difference of not more than a 10 basis point impact on return on common equity.