Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended June 30, 2025, for Consolidated Edison, Inc. (Con Edison) and its wholly-owned subsidiary, Consolidated Edison Company of New York, Inc. (CECONY). Con Edison is a holding company operating regulated utility businesses in New York and New Jersey, including electric, gas, and steam delivery, as well as electric transmission investments. The report is a combined filing for both registrants.
Key Financial Metrics (Six Months Ended June 30, 2025)
| Metric | Con Edison (2025) | Con Edison (2024) | CECONY (2025) | CECONY (2024) |
|---|---|---|---|---|
| Total Operating Revenues | $8,393 million | $7,495 million | $7,782 million | $6,967 million |
| Net Income (Common Stock) | $1,038 million | $922 million | $967 million | $880 million |
| Earnings Per Share (Diluted) | $2.92 | $2.66 | N/A | N/A |
| Operating Cash Flow | $2,816 million | $1,912 million | $2,700 million | $1,791 million |
| Utility Capital Expenditures | $2,420 million | $2,396 million | $2,233 million | $2,242 million |
| Long-Term Debt | $24,657 million | $24,651 million | $23,415 million | $23,409 million |
| Cash & Temporary Investments | $1,506 million | $1,324 million | $1,462 million | $1,254 million |
| Common Equity Ratio | 49.1% | 47.1% | 48.0% | 46.0% |
Material Changes vs. Prior Period
- Revenue Growth: Total operating revenues increased by $898 million (12.0%) year-over-year, driven primarily by higher purchased power and gas costs passed through to customers, as well as rate plan adjustments.
- Profitability: Net income increased by $116 million (12.6%) to $1,038 million. Earnings per share rose to $2.92 from $2.66.
- Expense Drivers:
- Purchased Power: Increased $171 million due to higher unit costs and volumes.
- Gas Purchased for Resale: Increased $198 million due to higher unit costs.
- Taxes (Other than Income): Increased $251 million, primarily due to higher property taxes and state/local revenue taxes.
- Regulatory Impact: A May 2024 NYSPSC order denied CECONY's request to capitalize $51 million of costs for a new customer billing system, resulting in an immediate expense recognition that impacted 2024 results. This non-recurring item contributed to the year-over-year earnings improvement in 2025.
- Asset Disposition: Con Edison completed the sale of the "Broken Bow II" wind project in January 2025, receiving net proceeds of $45 million.
Guidance, Outlook, and Risks
- Rate Cases: CECONY has filed requests for electric and gas rate increases effective January 1, 2026. The company requested a $1,608 million electric increase and a $349 million gas increase. The New York State Department of Public Service (NYSDPS) has submitted testimony supporting a lower electric increase ($319 million) and a gas decrease ($45 million).
- Capital Projects: Significant investments are ongoing for grid modernization and clean energy transition. The NYSPSC approved five urgent proactive planning projects totaling $439.9 million in June 2025.
- Regulatory & Legal Contingencies:
- Weld Inspection: CECONY is investigating non-conforming welds on gas and steam mains following contractor misconduct. No liability has been accrued, and the company cannot estimate potential losses.
- Income Tax Audit: An ongoing NYSPSC audit regarding historical income tax expense calculations could impact regulatory assets of approximately $1.05 billion for CECONY. The company believes recovery through future rates is probable.
- Asbestos Litigation: The company faces thousands of asbestos suits with claimed damages in the billions, though accrued liabilities are estimated at $8 million (Con Edison) and $7 million (CECONY).
- Legislative Changes: The "One Big Beautiful Bill Act" (OBBBA) was signed into law on July 4, 2025. Management preliminarily assesses no material impact on financial position, though it modifies tax provisions and accelerates the phase-out of solar/wind credits.
- Accounts Receivable: Aged accounts receivable (over 60 days) remain elevated at $1.53 billion for CECONY, impacting liquidity. The company is implementing enhanced collection strategies.
Investor Verification Checklist
- Rate Case Outcomes: Monitor the final NYSPSC decision on the January 2026 electric and gas rate filings, as the NYSDPS recommendation differs significantly from the company's request.
- Accounts Receivable Aging: Verify the effectiveness of new collection strategies in reducing the $1.53 billion in aged receivables, which poses a liquidity risk.
- Regulatory Asset Recovery: Track the status of the NYSPSC audit regarding the $1.05 billion income tax regulatory asset and the investigation into non-conforming welds.
- Capital Expenditure Execution: Confirm the timeline and cost management of the $439.9 million in newly approved urgent grid projects and the broader $2.4 billion utility capex run rate.
- Legislative Impact: Assess the long-term financial impact of the OBBBA on tax credits and the Corporate Alternative Minimum Tax (CAMT) liability.