10q10k10q10k.net

What changed in Consolidated Edison's 10-K — 2024 vs 2025

vs

Paragraph-level year-over-year comparison of Consolidated Edison's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+458 added−505 removedSource: 10-K (2026-02-19) vs 10-K (2025-02-20)

Top changes in Consolidated Edison's 2025 10-K

458 paragraphs added · 505 removed · 383 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

177 edited+33 added−75 removed149 unchanged
Biggest changeThe sale and transfer of Broken Bow II, including the related debt, was completed in January 2025. 30 CON EDISON ANNUAL REPORT 2024 The following table contains the Companies’ capital requirements current estimate of amounts for 2029 through 2025: Estimate (Millions of Dollars) 2029 2028 2027 2026 2025 CECONY (a)(b) Electric $5,789 $6,402 $6,277 $6,033 $3,380 Gas 1,151 1,221 1,253 1,289 1,113 Steam 153 140 140 108 108 Sub-total 7,093 7,763 7,670 7,430 4,601 O&R (b) Electric 456 430 381 416 358 Gas 116 117 110 127 120 Sub-total 572 547 491 543 478 Con Edison Transmission 113 113 107 94 43 Total capital expenditures 7,778 8,423 8,268 8,067 5,122 Retirement of long-term securities Con Edison – parent company — — — — — CECONY — 800 700 250 — O&R 44 — 80 — — Total retirement of long-term securities 44 800 780 250 — Total capital requirements $7,822 $9,223 $9,048 $8,317 $5,122 (a) CECONY’s capital expenditures for environmental protection facilities and related studies are estimated to be $605 million in 2025.
Biggest changeCON EDISON ANNUAL REPORT 2025 29 The following table contains the Companies’ capital requirements current estimate of amounts for 2026 through 2030: Estimate (Millions of Dollars) 2030 2029 2028 2027 2026 CECONY (a)(b) Electric $6,293 $6,228 $5,019 $4,852 $4,766 Gas 1,451 1,436 1,066 1,057 1,093 Steam 209 223 201 193 127 Sub-total 7,953 7,887 6,286 6,102 5,986 O&R (b) Electric 479 494 502 380 415 Gas 139 143 151 110 132 Sub-total 618 637 653 490 547 Con Edison Transmission 17 75 213 167 62 Total capital expenditures 8,588 8,599 7,152 6,759 6,595 Retirement of long-term securities CECONY 600 — 800 700 250 O&R 35 44 — 80 — Total retirement of long-term securities 635 44 800 780 250 Total capital requirements $9,223 $8,643 $7,952 $7,539 $6,845 (a) CECONY’s capital expenditures for environmental protection facilities and related studies are estimated to be $637 million in 2026.
For additional segment information, see Note P to the financial statements in Item 8.
For additional segment information, see Note P to the financial statements in Item 8.
In general, the Utilities recover their costs of purchasing power for full service customers, including the cost of hedging purchase prices, pursuant to rate provisions approved by the state public utility regulatory authority having jurisdiction.
In general, the Utilities recover their costs of purchasing power for full service customers, including the cost of hedging purchase prices, pursuant to rate provisions approved by the state public utility regulatory authority having jurisdiction.
The company’s estimate of its liability for each site was determined pursuant to consent decrees, settlement agreements or otherwise and in light of the financial condition of other PRPs. The company’s actual liability could differ substantially from amounts estimated.
The company’s estimate of its liability for each site was determined pursuant to consent decrees, settlement agreements or otherwise and in light of the financial condition of other PRPs. The company’s actual liability could differ substantially from amounts estimated.
The NYSDEC issued regulations in 2019 that limit nitrous oxides (NOx) emissions during the ozone season from May through September and affect older peaking units that are generally located downstate and needed during periods of high electric demand or for local reliability purposes. See “CECONY – Electric Operations – Electric Supply,” above.
The NYSDEC issued regulations in 2019 that limit emissions of nitrous oxides (NOx) during the ozone season from May through September and affect older peaking units that are generally located downstate and needed during periods of high electric demand or for local reliability purposes. See “CECONY – Electric Operations – Electric Supply,” above.
Environmental Matters Clean Energy Future New York State’s Climate Leadership and Community Protection Act In 2019, New York State enacted the Climate Leadership and Community Protection Act (CLCPA) that established a goal of 70 percent of the electricity procured by load serving entities regulated by the NYSPSC to be produced by renewable energy systems by 2030 and requires the statewide electrical demand system to have zero emissions by 2040.
Environmental Matters Clean Energy Future New York State’s Clean Energy Goals In 2019, New York State enacted the Climate Leadership and Community Protection Act (CLCPA) that established a goal of 70 percent of the electricity procured by load serving entities regulated by the NYSPSC to be produced by renewable energy systems by 2030 and requires the statewide electrical demand system to have zero emissions by 2040.
Gas Supply CECONY and O&R have combined their gas requirements, and contracts to meet those requirements, into a single portfolio. The combined portfolio is administered by, and related management services are provided by, CECONY (for itself and as agent for O&R) and costs are allocated between the Utilities in accordance with provisions approved by the NYSPSC.
Gas Supply CECONY and O&R have combined their gas requirements, and contracts to meet those requirements, into a single portfolio. The combined portfolio is administered by, and related management services are provided by, CECONY (for itself and as an agent for O&R) and costs are allocated between the Utilities in accordance with provisions approved by the NYSPSC.
Distribution System and Distributed Resources The NYSPSC is directing development by New York electric utilities of a distributed system platform to manage and coordinate distributed energy resources in their service areas under NYSPSC regulation and to provide customers, together with third parties, with data and tools to better manage their energy use.
Distribution System and Distributed Energy Resources The NYSPSC is directing development by New York electric utilities of a distributed system platform to manage and coordinate distributed energy resources (DER) in their service areas under NYSPSC regulation and to provide customers, together with third parties, with data and tools to better manage their energy use.
Liability for Service Interruptions The tariff provisions under which CECONY provides electric, gas and steam service, and O&R provides electric and gas service, limit each company’s liability to pay for damages resulting from service interruptions to circumstances resulting from its gross negligence or willful misconduct.
Liability for Service Interruptions The tariff provisions under which CECONY provides electric, gas and steam service, and O&R provides electric and gas service, limit each company’s liability to pay for damages resulting from service interruptions due to circumstances resulting from its gross negligence or willful misconduct.
(a subsidiary of Fortis Inc.) – or one of two state authorities – New York Power Authority (NYPA) or Long Island Power Authority. 16 CON EDISON ANNUAL REPORT 2024 Rate Plans Investor-owned utilities in the United States provide delivery service to customers according to the terms of tariffs approved by the appropriate state utility regulator.
(a subsidiary of Fortis Inc.) – or one of two state authorities – New York Power Authority (NYPA) or Long Island Power Authority. 16 CON EDISON ANNUAL REPORT 2025 Rate Plans Investor-owned utilities in the United States provide delivery service to customers according to the terms of tariffs approved by the appropriate state utility regulator.
Since NYISO-invoked demand reduction programs can only be called upon under specific circumstances, Design Weather Conditions do not include these programs' potential impact. However, the O&R forecasted hourly peak demand at design conditions does include the impact of certain demand reduction programs. The company estimates that, under Design Weather Conditions, the 2025 service area peak demand will be 1,600 MW.
Since NYISO-invoked demand reduction programs can only be called upon under specific circumstances, design weather conditions do not include these programs' potential impact. However, the O&R forecasted hourly peak demand at design conditions does include the impact of certain demand reduction programs. The company estimates that, under design weather conditions, the 2026 service area peak demand will be 1,600 MW.
CON EDISON ANNUAL REPORT 2024 15 O&R Electric O&R and its utility subsidiary, Rockland Electric Company (RECO) (together referred to herein as O&R) provide electric service to approximately 0.3 million customers in southeastern New York and northern New Jersey, an approximately 1,300 square mile service area. Gas O&R delivers gas to over 0.1 million customers in southeastern New York.
CON EDISON ANNUAL REPORT 2025 15 O&R Electric O&R and its utility subsidiary, Rockland Electric Company (RECO) (together referred to herein as O&R) provide electric service to approximately 0.3 million customers in southeastern New York and northern New Jersey, an approximately 1,300 square mile service area. Gas O&R delivers gas to over 0.1 million customers in southeastern New York.
See “Con Edison Transmission,” below. 18 CON EDISON ANNUAL REPORT 2024 New York Independent System Operator (NYISO) The NYISO is a not-for-profit organization that controls and directs the operation of most of the electric transmission facilities in New York State, including those of the Utilities, as an integrated system.
See “Con Edison Transmission,” below. 18 CON EDISON ANNUAL REPORT 2025 New York Independent System Operator (NYISO) The NYISO is a not-for-profit organization that controls and directs the operation of most of the electric transmission facilities in New York State, including those of the Utilities, as an integrated system.
The company expects that these resources will again be adequate to meet the requirements of its customers in 2025. O&R does not own any electric generating capacity. The company plans to meet its continuing obligation to supply electricity to its customers through a combination of electricity purchased under contracts or purchased through the wholesale electricity market.
The company expects that these resources will again be adequate to meet the requirements of its customers in 2026. O&R does not own any electric generating capacity. The company plans to meet its continuing obligation to supply electricity to its customers through a combination of electricity purchased under contracts or purchased through the wholesale electricity market.
The order also provides CECONY and O&R with authorization to offer incentives to encourage electric vehicle charging to occur overnight and during off-peak times totaling approximately $71.8 million and $8.2 million, respectively, through 2025, that would be recovered through the respective company’s revenue reconciliation mechanisms.
The order also provided CECONY and O&R with authorization to offer incentives to encourage electric vehicle charging to occur overnight and during off-peak times totaling approximately $71.8 million and $8.2 million, respectively, through 2025, that would be recovered through the respective company’s revenue reconciliation mechanisms.
As required by the law, the New York State Department of Environmental Conservation (NYSDEC) adopted regulations establishing statewide GHG emissions limits that are 60 percent of 1990 emissions levels by 2030 and 15 percent of 1990 emissions by 2050. The Utilities are unable to predict the impact on them of the implementation of this law.
As required by the law, the New York State Department of Environmental Conservation (NYSDEC) adopted regulations establishing statewide GHG emissions limits that are 60 percent of 1990 emissions levels by 2030 and 15 percent of 1990 emissions by 2050. The Utilities are unable to predict the impact that the implementation of this law will have on them.
The five-year forecast in peak demand is used by the company for electric supply and capital expenditures planning purposes. Electric Supply The electricity O&R sold to its full-service customers in 2024 was purchased under firm power contracts or through the wholesale electricity market.
The five-year forecast in peak demand is used by the company for electric supply and capital expenditures planning purposes. Electric Supply The electricity O&R sold to its full-service customers in 2025 was purchased under firm power contracts or through the wholesale electricity market.
The five-year forecast in peak demand is used by the company for electric supply and capital expenditures planning purposes. Electric Supply Most of the electricity sold by CECONY to its full-service customers in 2024 was purchased through the wholesale electricity market administered by the NYISO.
The five-year forecast in peak demand is used by the company for electric supply and capital expenditures planning purposes. Electric Supply Most of the electricity sold by CECONY to its full-service customers in 2025 was purchased through the wholesale electricity market administered by the NYISO.
At “Design Weather Conditions,” electric peak demand in O&R’s service area would have been approximately 1,533 MW. Design Weather Conditions for the electric system is a standard to which the actual hourly peak demand is adjusted for evaluation and planning purposes.
At “design weather conditions,” electric peak demand in O&R’s service area would have been approximately 1,526 MW. Design weather conditions for the electric system is a standard to which the actual hourly peak demand is adjusted for evaluation and planning purposes.
In December 2024, CECONY and O&R each submitted updated emergency response plans for 2025. Generic Proceedings The NYSPSC from time to time conducts “generic” proceedings to consider issues relating to all electric and gas utilities operating in New York State.
In December 2025, CECONY and O&R each submitted updated emergency response plans for 2026. Generic Proceedings The NYSPSC from time to time conducts “generic” proceedings to consider issues relating to all electric and gas utilities operating in New York State.
At “Design Weather Conditions,” electric peak demand in CECONY’s service area would have been approximately 12,540 MW. Design Weather Conditions for the electric system is a standard to which the actual hourly peak demand is adjusted for evaluation and planning purposes.
At “design weather conditions,” electric peak demand in CECONY’s service area would have been approximately 12,600 MW. Design weather conditions for the electric system is a standard to which the actual hourly peak demand is adjusted for evaluation and planning purposes.
Gas Con Edison Transmission owns a 71.2 percent interest in Honeoye, a company that operates a gas storage facility in upstate New York and in which CECONY owns the remaining interest. Con Edison Transmission and CECONY are considering strategic alternatives with respect to their investments in Honeoye.
Gas Con Edison Transmission owns a 71.2 percent inter est in Honeoye, a company that operates a gas storage facility in upstate New York and in which CECONY owns the remaining interest. Con Edison Transmission and CECONY are considering strategic alternatives with respect to their investments in Honeoye.
The collective bargaining agreement covering most of the CECONY employees expires in June 2028. Agreements covering other CECONY employees and O&R employees expire in June 2025 and May 2026, respectively. Con Edison measures the voluntary attrition rate of its employees in assessing the company’s overall human capital.
The collective bargaining agreement covering most of the CECONY employees expires in June 2028 . Agreements covering other CECONY employees and O&R employees expire in June 2029 and May 2026, respectively. Con Edison measures the voluntary attrition rate of its employees in assessing the company’s overall human capital.
The plaintiff asserts claims pursuant to the federal Comprehensive Environmental Response, Compensation and Liability Act of 1980 and the New York Navigation Law for cleanup costs incurred, and to be incurred, by the plaintiff at the site. The plaintiff estimates the total cleanup costs at the site to be over $1,000 million.
The plaintiff asserts claims pursuant to the federal Comprehensive Environmental Response, Compensation and Liability Act of 1980 and the New York Navigation Law for cleanup costs incurred, and to be incurred, by the plaintiff at the site. The plaintiff estimated the total cleanup costs at the site to be over $1,000 million.
(c) Propel NY Energy, a project that is under development jointly with the NYPA, is a 90-mile electric transmission project that is expected to increase high voltage transmission connections between Long Island and the rest of New York State.
(d) Propel NY Energy, a project that is under development jointly with the NYPA, is a 90-mile electric transmission project that is expected to increase high voltage transmission connections between Long Island and the rest of New York State.
NYSERDA has issued competitive solicitations for offshore wind energy resulting in two projects that are in development, Sunrise Wind (924 MW), a project that began construction in June 2024 and is expected to enter commercial operation in 2026 and Empire Wind 1 (810 MW), a project that is expected to enter commercial operation in 2027 and connect to the New York City electrical grid at CECONY’s Gowanus substation.
NYSERDA issued competitive solicitations for offshore wind energy resulting in two projects that are in development, Sunrise Wind (924 MW), a project that began construction in June 2024 and that is expected to enter commercial operation in 2026 and Empire Win d 1 (810 MW), a project that is expected to enter commercial operation in 2027 and connect to the New York City electrical grid at CECONY’s Gowanus substation.
The EPA estimated the cost of this work would be $369 million (although actual costs may be significantly higher) and has indicated the work would take several years to complete. In October 2024, a PRP filed a lawsuit against the other PRPs, including CECONY, with respect to the Gowanus Canal Superfund Site.
The EPA estimated the cost of this work would be $369 million (although actual costs may be significantly higher) and has indicated the work would take several years to complete. In October 2024, a PRP filed a lawsuit against the other PRPs, including CECONY, with respect to the Gowanus Canal Sup erfund Site.
Further, the company maintains a career development and succes sion planning program that is committed to helping employees grow their careers, talents, skills and abilities. In addition to their daily job functions, employees of the Utilities are assigned to and trained for a position for emergency response that is mobilized in the event of a weather event or emergency.
Further, the company maintains a career development and succes sion planning program that is committed to helping employees grow their careers, talents, skills and abilities. In addition to their daily job functions, employees of the Utilities are assigned to and trained for a position for emergency response that can be mobilized to support a weather event or emergency.
CON EDISON ANNUAL REPORT 2024 41 Site Location Start Court or Agency % of Total Liability Cortese Landfill Narrowsburg, NY 1987 EPA 6.0% Curcio Scrap Metal Saddle Brook, NJ 1987 EPA 100.0% Metal Bank of America Philadelphia, PA 1987 EPA 1.0% Global Landfill Old Bridge, NJ 1988 EPA 0.4% Borne Chemical Elizabeth, NJ 1997 NJDEP 0.7% Pure Earth Vineland, NJ 2018 EPA to be determined Berry's Creek Site (formerly referred to as Scientific Chemical Processing) Carlstadt, NJ 2023 EPA to be determined Other Environmental Matters In December 2024, New York State enacted the Climate Change Superfund Act (Act), which requires "responsible parties" to pay $75 billion over twenty-five years into a fund based on GHG emissions to finance infrastructure projects needed to address the impacts from climate change.
Site Location Start Court or Agency % of Total Liability Cortese Landfill Narrowsburg, NY 1987 EPA 6.0% Curcio Scrap Metal Saddle Brook, NJ 1987 EPA 100.0% Metal Bank of America Philadelphia, PA 1987 EPA 1.0% Global Landfill Old Bridge, NJ 1988 EPA 0.4% Borne Chemical Elizabeth, NJ 1997 NJDEP 0.7% Pure Earth Vineland, NJ 2018 EPA to be determined Berry's Creek Site (formerly referred to as Scientific Chemical Processing) Carlstadt, NJ 2023 EPA to be determined Other Environmental Matters In December 2024, New York State enacted the Climate Change Superfund Act (Act), which requires, among other things, "responsible parties" to pay $75 billion over twenty-five years into a fund based on GHG emissions to finance infrastructure projects needed to address the impacts from climate change.
(e) Included in these amounts is the cost of minimum quantities of natural gas supply, transportation and storage that the Utilities are obligated to purchase at both fixed and variable prices.
(d) Included in these amounts is the cost of minimum quantities of natural gas supply, transportation and storage that the Utilities are obligated to purchase at both fixed and variable prices.
These requirements apply both to regulated utilities such as CECONY and O&R for the customers they supply under regulated tariffs and to other load serving entities that supply customers on market terms. See “CECONY – Electric Operations – Electric Supply” and “O&R – Electric Operations – Electric Supply,” below.
These requirements apply both to regulated utilities such as CECONY and O&R for the customers they supply under regulated tariffs and to other load serving entities that supply customers on market terms. See “CECONY – Electric Operations – Electric Supply,” "CECONY – Electric Operations – Electric Reliability Needs" and “O&R – Electric Operations – Electric Supply,” below.
If, after evidentiary hearings or other investigatory proceedings, the NYSPSC finds that the utility failed to reasonably implement its plan during an event, the NYSPSC may impose penalties or deny recovery of any part of the service restoration costs caused by such failure. In April 2024, the NYSPSC approved CECONY’s and O&R's emergency response plans.
If, after evidentiary hearings or other investigatory proceedings, the NYSPSC finds that the utility failed to reasonably implement its plan during an event, the NYSPSC may impose penalties or deny recovery of any part of the service restoration costs caused by such failure. In March 2025, the NYSPSC approved CECONY’s and O&R's emergency response plans.
The NYSPSC recommended adoption of specific cybersecurity regulations to enhance and codify standards and practices in these areas, which will be developed and implemented in a future proceeding. O&R’s subsidiary, RECO, is subject to cyber regulation by the NJBPU.
The NYSPSC recommended adoption of specific cybersecurity regulations to enhance and codify standards and practices in these areas, which will be developed and implemented pursuant to a separate proceeding. O&R’s subsidiary, RECO, is subject to cyber regulation by the NJBPU.
The Companies are unable to predict changes in regulations, regulatory guidance, legal interpretations, policy positions and implementation actions that may result from the Presidential Actions.
The Companies are unable to predict changes in regulations, regulatory guidance, legal interpretations, policy positions and implementation actions that may result from the Federal Actions.
Long-term Purchase Obligations, which co mprises $3,126 million of "Other Purchase Obligations," were derived from the Utilities' purchasing system by using a method that identifies the remaining purchase obligations. The Utilities believe that unreasonable effort and expense would be involved to enable them to report their “Other Purchase Obligations” in a different manner.
Long-term Purchase Obligations, which co mprises $3,116 million of "Other Pur chase Obligations," were derived from the Utilities' purchasing system by using a method that identifies the remaining purchase obligations. The Utilities believe that unreasonable effort and expense would be involved to enable them to report their “Other Purchase Obligations” in a different manner.
As of January 2025, the company forecasts an average annual decrease in steam hourly peak demand in its service area at Design Weather Conditions over the next five years to be approximately 0.4 percent. The five-year forecast in peak demand is used by the company for steam supply and capital expenditures planning purposes.
As of January 2026, the company forecasts an average annual decrease in steam hourly peak demand in its service area at design weather conditions over the next five years to be approximately 0.9 percent. The five-year forecast in peak demand is used by the company for steam supply and capital expenditures planning purposes.
As of January 2025, the company forecasts an average annual increase of the gas peak day demand for firm gas customers over the next five years at design conditions of approximately 0.1 percent in its service area. The five-year forecast in peak demand is used by the company for gas supply and capital expenditures planning purposes.
As of January 2026, the company forecasts an average annual increase of the gas peak day demand for firm gas customers over the next five years at design conditions of approximately 0.2 percent in its service area. The five-year forecast in peak demand is used by the company for gas supply and capital expenditures planning purposes.
Natural gas is delivered by pipeline to O&R at various points in or near its service territory and is distributed to customers by the company through an estimated 1,900 miles of mains and 107,745 service lines. Gas Sales and Deliveries O&R delivers gas to its full-service customers who purchase gas from the company.
Natural gas is delivered by pipeline to O&R at various points in or near its service territory and is distributed to customers by the company through an estimated 1,902 miles of mains and 107,866 service lines. Gas Sales and Deliveries O&R delivers gas to its full-service customers who purchase gas from the company.
Con Edison, as part of a coalition of public and private utilities, intervened in this litigation, arguing that the EPA had the authority to set the BSER, but the coalition took no position as to whether CCS was achievable in the timeframe set forth in the Section 111 Rule. In December 2024, the D.C.
Con Edison, as part of a coalition of public and private utilities, intervened in this litigation, arguing that the EPA had the authority to set the BSER, but the coalition took no position as to whether CCS was achievable in the timeframe set forth in the Section 111 Rule. In February 2025, the D.C.
Environmental Sustainability Con Edison’s sustainability strategy, as it relates to the environment, provides that the company seeks, among other things, to reduce direct and indirect GHG emissions; enhance the efficiency of its water use; reduce its impact to natural ecosystems; focus on reducing, reusing and recycling to lower materials consumption and disposal; and design its work in consideration of climate projections .
Environmental Sustainability CON EDISON ANNUAL REPORT 2025 37 Con Edison’s sustainability strategy, as it relates to the environment, provides that the company seeks, among other things, to reduce direct and indirect GHG emissions; enhance the efficiency of its water use; reduce its impact to natural ecosystems; focus on reducing, reusing and recycling to lower materials consumption and disposal; and design its work in consideration of climate projections .
Any such costs incurred by utilities are not recoverable from customers. Utilities may petition the NYSPSC to request a waiver of the requirement that it compensate customers after widespread prolonged outages.
Any su ch costs incurred by utilities are not recoverable from customers. Utilities may petition the NYSPSC to request a waiver of the requirement that it compensate customers after widespread prolonged outages.
“Design Weather Conditions” for the gas system is a standard to which the actual peak demand is adjusted for evaluation and planning purposes. The company estimates that, under Design Weather Conditions, the 2025/2026 service area peak day demand for firm gas customers will be 1,650 MDt.
“Design weather conditions” for the gas system is a standard to which the actual peak demand is adjusted for evaluation and planning purposes. The company estimates that, under design weather conditions, the 2026/2027 service area peak day demand for firm gas customers will be 1,648 MDt.
“Design Weather Conditions” for the steam system is a standard to which the actual hourly peak demand is adjusted for evaluation and planning purposes. The company’s estimate for the winter of 2025/2026 hourly peak demand of its steam customers is about 7.6 MMlb per hour under Design Weather Conditions.
“Design weather conditions” for the steam system is a standard to which the actual hourly peak demand is adjusted for evaluation and planning purposes. The company’s estimate for the winter of 2026/2027 hourly peak demand of its steam customers is about 7.3 MMlb per hour under design weather conditions.
“Design Weather Conditions” for the gas system is a standard to which the actual peak demand is adjusted for evaluation and planning purposes. The company estimates that, under Design Weather Conditions, the 2025/2026 service area peak day demand for firm sales customers will be 235 MDt.
“Design weather conditions” for the gas system is a standard to which the actual peak demand is adjusted for evaluation and planning purposes. The company estimates that, under design weather conditions, the 2026/2027 service area peak day demand for firm sales customers will be 247 MDt.
Gas Peak Demand The gas actual peak day demand for firm sales customers in O&R’s service area occurs during the winter heating season and during the winter of 2024/2025 (through January 31, 2025) occurred on January 21, 2025 when the firm sales customers' demand reached approximately 188 MDt.
Gas Peak Demand The gas actual peak day demand for firm sales customers in O&R’s service area occurs during the winter heating season and during the winter of 2025/2026 (through January 31, 2026) occurred on January 24, 2026 when the firm sales customers' demand reached approximately 188 MDt.
The NJBPU authorized RECO to recover these costs, including a full rate of return, in rates from customers. 36 CON EDISON ANNUAL REPORT 2024 In November 2023, the NYSPSC issued an order that provides CECONY and O&R with up to $432 million and $18 million through 2026, respectively, for the implementation of commercial managed charging programs and demand charge rebates, participant incentives and administration costs.
The NJBPU authorized RECO to recover these costs, including a full rate of return, in rates from customers. In November 2023, the NYSPSC issued an order that provides CECONY and O&R with up to $432 million and $18 million through 2026, respectively, for the implementation of commercial managed charging programs and demand charge rebates, participant incentives and administration costs.
Under the company's retail choice program, O&R also delivers electricity to its customers who purchase electricity from load serving entities. 26 CON EDISON ANNUAL REPORT 2024 The company charges all customers in its service area for the delivery of electricity.
Under the company's retail choice program, O&R also delivers electricity to its customers who purchase electricity from load serving entities. CON EDISON ANNUAL REPORT 2025 25 The company charges all customers in its service area for the delivery of electricity.
The company estimates that its undiscounted potential liability for the completion of the site investigation and cleanup of the known contamination on MGP sites (other than the Astoria site, which is discussed below) could range from $622 million to $2,432 million.
The company estimates that its undiscounted potential liability for the completion of the site investigation and cleanup of the known contamination on MGP sites (other than the Astoria site, which is discussed below) could range from $645 million to $2,550 million.
Under Clean Air Act New Source Review (NSR) regulations, an owner of a major facility, including CECONY’s steam and steam-electric generating facilities and certain other CECONY facilities, is required to obtain a permit before making certain modifications to the facility, other than routine maintenance, repair, or replacement, that cause the increase of emissions of pollutants from the facility above specified thresholds.
CON EDISON ANNUAL REPORT 2025 41 Under Clean Air Act New Source Review (NSR) regulations, an owner of a major facility, including CECONY’s steam and steam-electric generating facilities and certain other CECONY facilities, is required to obtain a permit before making certain modifications to the facility, other than routine maintenance, repair, or replacement, that cause the increase of emissions of pollutants from the facility above specified thresholds.
The NYSPSC authorized CECONY and O&R to recover these costs, including a full rate of return, through surcharge mechanisms and subsequently in rates from customers.
The NYSPSC authorized CECONY and O&R to recover these costs, including a full rate of return, through surcharge mecha nisms and subsequently in rates from customers.
Meeting the goals of the CLCPA will require capital expenditures above historic norms. While the details of CECONY’s investments will continue to be addressed in its rate cases or other filings, subject to the approval of the NYSPSC, CECONY projects that $72 billion of capital expenditures will be needed between 2025 and 2034 to implement its strategy.
Implementing this strategy will require capital expenditures above historic norms. While the details of CECONY’s investments will continue to be addressed in its rate cases or other filings, subject to the approval of the NYSPSC, CECONY projects that $72 billion of capital expenditures will be needed between 2025 and 2034 to implement its strategy.
Offshore Wind In an effort to meet the CLCPA’s offshore wind goals, load serving entities, such as CECONY and O&R, will be required to purchase offshore wind renewable energy credits beginning in 2026 when NYSERDA's offshore wind projects are expected to begin operation.
Offshore Wind In an effort to meet the CLCPA’s offshore wind goals, load serving entities, such as CECONY and O&R, will be required to purchase offshore wind renewable energy credits when NYSERDA's offshore wind projects begin operation.
O&R generally recovers, on a current basis, the cost of the electricity that it buys and then sells to its full-service customers. It does not make any margin or profit on the electricity it sells. O&R’s New York electric revenues (which accounted for 74.63 percent of O&R’s electric revenues in 2024) are subject to a revenue decoupling mechanis m.
O&R generally recovers, on a current basis, the cost of the electricity that it buys and then sells to its full-service customers. It does not make any margin or profit on the electricity it sells. O&R’s New York electric revenues (which accounted for 76.66 percent of O&R’s electric revenues in 2025) are subject to a revenue decoupling mechanis m.
For additional information about the segments, see Note P to the financial statements in Item 8. Electric Operations Electric Facilities CECONY’s capitalized costs for utility plant, net of accumulated depreciation, for distribution facilities were $23,770 million and $23,238 million at December 31, 2024 and 2023, respectively.
For additional information about the segments, see Note P to the financial statements in Item 8. Electric Operations Electric Facilities CECONY’s capitalized costs for utility plant, net of accumulated depreciation, for distribution facilities were $25,214 million and $23,770 million at December 31, 2025 and 2024, respectively.
The Companies’ commitments to make payments in addition to these contractual commitments include their other liabilities reflected on their balance sheets, any funding obligations for their pension and other postretirement benefit plans, financial hedging activities, their collective bargaining agreements and Con Edison’s guarantee of certain obligations.
CON EDISON ANNUAL REPORT 2025 31 The Companies’ commitments to make payments in addition to these contractual commitments include their other liabilities reflected on their balance sheets, any funding obligations for their pension and other postretirement benefit plans, financial hedging activities, their collective bargaining agreements and Con Edison’s guarantee of certain obligations.
CECONY’s current electric and gas rate plans allow it to recover the costs of heat pumps for building electrification and energy efficiency expenditures, including a full rate of return, in rates from customers. See Note B to the financial statements in Item 8.
CECONY’s 2023-2025 electric and gas rate plans allowed it to recover the costs of heat pumps for building electrification and energy efficiency expenditures, including a full rate of return, in rates from customers. See Note B to the financial statements in Item 8.
While the Good Neighbor Rule is stayed, the EPA is allocating allowances based on the 2021 Transport Rule, with certain modifications. The revised Transport Rule reduced the number of allowances allocated to CECONY and required the company to purchase allowances to offset the decreased allocation. CECONY expects to comply with the Transport Rule in 2024 and 2025.
While the Good Neighbor Rule is stayed, the EPA is allocating allowances base d on the 2021 Transport Rule, with certain modifications. The revised Transport Rule reduced the number of allowances allocated to CECONY and required the company to purchase allowances to offset the decreased allocation. CECONY expects to comply with the Transport Rule in 2025 and 2026.
On December 31, 2024, the steam system was capable of delivering approximately 11.5 MMlb of steam per hour, and CECONY estimates that the system will maintain the same capability throughout the 2025/2026 winter.
On December 31, 2025, the steam system was capable of delivering approximately 11.2 MMlb of steam per hour, and CECONY estimates that the system will maintain the same capability throughout the 2026/2027 winter.
For a further discussion of claims and possible claims against O&R under Superfund, see Note G to the financial statements in Item 8. Manufactured Gas Sites O&R and its predecessors formerly owned and operated manufactured gas plants at seven sites (O&R MGP Sites) in Orange County and Rockland County, New York.
For a further discussion of claims and possible claims against O&R under Superfund, see Note G to the financial statements in Item 8. Manufactured Gas Sites 40 CON EDISON ANNUAL REPORT 2025 O&R and its predecessors formerly owned and operated manufactured gas plants at seven sites (O&R MGP Sites) in Orange County and Rockland County, New York.
Steam Operations Steam Facilities CECONY’s capitalized costs for utility plant, net of accumulated depreciation, for steam facilities, including steam's portion of the steam-electric generation facilities, were $2,006 million and $1,990 million at December 31, 2024 and 2023, respectively. See "CECONY – Electric Operations – Electric Facilities," above.
Steam Operations Steam Facilities CECONY’s capitalized costs for utility plant, net of accumulated depreciation, for steam facilities, including steam's portion of the steam-electric generation facilities, were $2,009 million and $2,006 million at December 31, 2025 and 2024, respectively. See "CECONY – Electric Operations – Electric Facilities," above.
Con Edison’s estimated Scope 1 emissions of GHG during the past five years were: 38 CON EDISON ANNUAL REPORT 2024 (Metric tons, in millions (a)) 2024 2023 2022 2021 2020 CO2 equivalent emissions 2.7 2.7 2.9 2.8 2.7 (a) Estimated emissions for 2024 are based on preliminary data and are subject to third-party verification.
Con Edison’s estimated Scope 1 emissions of GHG during the past five years were: (Metric tons, in millions (a), (b)) 2025 2024 2023 2022 2021 CO2 equivalent emissions 2.7 2.7 2.7 2.9 2.8 (a) Estimated emissions for 2025 are based on preliminary data and are subject to third-party verification.
O&R’s electric sales and deliveries for the last five years were: Year Ended December 31, 2024 2023 2022 2021 2020 Electric Energy Delivered (millions of kWh) Total deliveries to O&R full service customers 3,212 2,988 2,973 2,702 2,712 Delivery service for retail choice customers 2,522 2,397 2,580 2,839 2,622 Total Deliveries in Franchise Area 5,734 5,385 5,553 5,541 5,334 Electric Energy Delivered ($ in millions) Total deliveries to O&R full service customers $653 $578 $576 $453 $442 Delivery service for retail choice customers 198 172 198 223 186 Other operating revenues 1 9 (1) 5 1 Total Deliveries in Franchise Area $852 $759 $773 $681 $629 Average Revenue Per kWh Sold (Cents) Residential $22.20 $21.90 $21.50 $19.00 $17.80 Commercial and Industrial $17.30 $15.30 $15.60 $13.00 $14.20 For further discussion of the company’s electric operating revenues and its electric results, see “Results of Operations” in Item 7.
O&R’s electric sales and deliveries for the last five years were: Year Ended December 31, 2025 2024 2023 2022 2021 Electric Energy Delivered (millions of kWh) Total deliveries to O&R full service customers 3,541 3,212 2,988 2,973 2,702 Delivery service for retail choice customers 2,234 2,522 2,397 2,580 2,839 Total Deliveries in Franchise Area 5,775 5,734 5,385 5,553 5,541 Electric Energy Delivered ($ in millions) Total deliveries to O&R full service customers $809 $653 $578 $576 $453 Delivery service for retail choice customers 159 198 172 198 223 Other operating revenues (34) 1 9 (1) 5 Total Deliveries in Franchise Area $934 $852 $759 $773 $681 Average Revenue Per kWh Sold (Cents) Residential ¢25.30 ¢22.20 ¢21.90 ¢21.50 ¢19.00 Commercial and Industrial ¢18.80 ¢17.30 ¢15.30 ¢15.60 ¢13.00 For further discussion of the company’s electric operating revenues and its electric results, see “Results of Operations” in Item 7.
Gas CECONY delivers gas to approximately 1.1 million customers in Manhattan, the Bronx, parts of Queens and most of Westchester County. Steam CECONY operates the largest steam distribution system in the United States by producing and delivering approximat ely 15,494 MMlb of steam annually to approximately 1,520 customers in parts of Manhattan.
Gas CECONY delivers gas to approximately 1.1 million customers in Manhattan, the Bronx, parts of Queens and most of Westchester County. Steam CECONY operates the largest steam distribution system in the United States by producing and delivering approximat ely 16,975 MMlb of steam annually to approximately 1,490 customers in parts of Manhattan.
GHG Emissions Reporting Based on the most recent data (2022) published by the U.S. Environmental Protection Agency (EPA), Con Edison estimates that its direct GHG emissions constitute less than 0.1 percent of the nation’s GHG emissions.
GHG Emissions Reporting Based on the most recent data (2022) published by the EPA, Con Edison estimates that its direct GHG emissions constitute less than 0.1 percent of the nation’s GHG emissions.
Steam Peak Demand and Capacity The steam actual hourly peak demand in CECONY’s service area occurs during the winter heating season and during the winter of 2024/2025 (through January 31, 2025) occurred on January 22, 2025 when the actual hourly demand reached approximately 7.1 MMlb per hour.
Steam Peak Demand and Capacity The steam actual hourly peak demand in CECONY’s service area occurs during the winter heating season and during the winter of 2025/2026 (through January 31, 2026) occurred on January 30, 2026 when the actual hourly demand reached approximately 7.01 MMlb per hour.
CON EDISON ANNUAL REPORT 2024 43 The EPA's Transport Rule (also referred to as the Cross-State Air Pollution Rule), which was implemented in January 2015, established a new cap-and-trade program requiring further reductions in air emissions than the Clean Air Intrastate Rule (CAIR) that it replaced.
The EPA's Transport Rule (also referred to as the Cross-State Air Pollution Rule), which was first implemented in January 2015, established a new cap-and-trade program requiring further reductions in air emissions than the Clean Air Intrastate Rule (CAIR) that it replaced.
O&R Electric Operations Electric Facilities O&R’s capitalized costs for utility plant, net of accumulated depreciation, for distribution facilities were $1,359 million and $1,253 million at December 31, 2024 and 2023, respectively. For its transmission facilities, the costs for utility plant, net of accumulated depreciation, were $369 million and $319 million at December 31, 2024 and 2023, respectively.
O&R Electric Operations Electric Facilities O&R’s capitalized costs for utility plant, net of accumulated depreciation, for distribution facilities were $1,482 million and $1,359 million at December 31, 2025 and 2024, respectively. For its transmission facilities, the costs for utility plant, net of accumulated depreciation, were $377 million and $369 million at December 31, 2025 and 2024, respectively.
In July 2022, the NYSPSC issued an order that provides CECONY and O&R with up to a total of $31 million and $5.8 million, respectively, through 2025, for implementation of residential vehicle managed charging programs and administration costs. The NYSPSC authorized CECONY and O&R to recover these costs through surcharge mechanisms.
In July 2022, the NYSPSC issued an order that provided CECONY and O&R with up to a total of $31 million and $5.8 million, respectively, through 2025, for implementation of residential vehicle managed charging programs and administration costs.
At December 31, 2024, the company owned or jointly owned 490 miles of overhead circuits operating at 138, 230, 345 and 500 kV and 760 miles of underground circuits operating at 69, 138 and 345 kV. The compa ny’s 40 transmission substations and 63 area stations are supplied by circuits operated at 69 kV and above.
At December 31, 2025, the company owned or jointly owned 490 miles of overhead circuits operating at 138, 230, 345 and 500 kV and 770 miles of underground circuits operating at 69, 138 and 345 kV. The company’s 40 transmission substations and 63 area stations are supplied by circuits operated at 69 kV and above.
Ownership Interest In-Service Date/Anticipated Base Return on Common Equity (ROE) plus Common Equity Ratio Transmission Owner Transmission Solutions (TOTS) (a) 45.7% 2016 9.5% plus 0.50% = 10% 53% New York Energy Solution (NYES) (b) 45.7% 2023/2025 9.65% plus 1% =10.65% 53% Propel NY Energy (c) 41.7% of New York Transco's share 2030 10.3% plus 1% = 11.3% 53% (a) TOTS is a group of three electric power bulk transmission projects ($217 million total cost) constructed on the New York bulk transmission system to increase transfer capability between upstate and downstate New York.
Ownership Interest In-Service Date/Anticipated Base Return on Common Equity plus incentive Return on Equity (ROE) Common Equity Ratio Transmission Owner Transmission Solutions (TOTS) (a) 45.7% 2016 9.99% plus 0.50% = 10.49% 53% New York Energy Solution (NYES) (b) 45.7% 2023/2025 9.99% plus 0.50% to 1.00% = 10.49% to 10.89% (c) 53% Propel NY Energy (d) 41.7% of New York Transco's share 2030 10.3% plus 1% = 11.3% 53% (a) TOTS is a group of three electric power bulk transmission proje cts ($217 million to tal cost) constructed on the New York bulk transmissi on system to increase transfer capability between upstate and downstate New York.
Since its promulgation, the Good Neighbor Rule has been the subject of litigation in the federal Circuit Courts of Appeals and the U.S. Supreme Court. In June 2024, the U.S. Supreme Court granted a request to stay the Good Neighbor Rule while judicial review over its merits was ongoing in the D.C. Circuit.
The Good Neighbor Rule was the subject of litigation in multiple courts and, in June 2024, the U.S. Supreme Court granted a request to stay the Good Neighbor Rule while judicial review over its merits was ongoing in the D.C. Circuit.
These amounts are subject to approval by the NYSPSC. Electric Vehicles In July 2020, the NYSPSC established light-duty electric vehicle make-ready and other infrastructure programs that included budgets of $290 million and $24 million for CECONY and O&R, respectively, through 2025.
Electric Vehicles In July 2020, the NYSPSC established light-duty electric vehicle make-ready and other infrastructure programs that included budgets of $290 million and $24 million for CECONY and O&R, respectively, through 2025.
O&R’s gas sales and deliveries for the last five years were: Year Ended December 31, 2024 2023 2022 2021 2020 Gas Delivered (MDt) Firm sales Full service 12,516 14,357 15,353 13,998 11,877 Firm transportation 4,623 5,055 6,396 7,584 8,271 Total Firm Sales 17,139 19,412 21,749 21,582 20,148 Interruptible sales 3,712 3,301 3,911 3,821 3,633 Total Gas Delivered to O&R Customers 20,851 22,713 25,660 25,403 23,781 Transportation of customer-owned gas Sales for resale 710 672 673 468 658 Sales to electric generating stations 10 4 10 26 59 Off-system sales 109 20 73 81 19 Total Sales 21,680 23,409 26,416 25,978 24,517 Year Ended December 31, 2024 2023 2022 2021 2020 Gas Delivered ($ in millions) Firm sales Full service $187 $230 $245 $190 $141 Firm transportation 34 38 45 55 62 Total Firm Sales 221 268 290 245 203 Interruptible Sales 7 6 6 6 6 Total Gas Delivered to O&R Customers 228 274 296 251 209 Transportation of customer-owned gas Other operating revenues 45 23 16 9 24 Total Sales $273 $297 $312 $260 $233 Average Revenue Per Dt Sold Residential $15.44 $16.90 $16.49 $14.09 $12.40 General $11.73 $12.64 $13.62 $11.24 $9.51 For further discussion of the company’s gas operating revenues and its gas results, see “Results of Operations” in Item 7.
O&R’s gas sales and deliveries for the last five years were: Year Ended December 31, 2025 2024 2023 2022 2021 Gas Delivered (MDt) Firm sales Full service 16,558 12,516 14,357 15,353 13,998 Firm transportation 5,300 4,623 5,055 6,396 7,584 Total Firm Sales 21,858 17,139 19,412 21,749 21,582 Interruptible sales 3,630 3,712 3,301 3,911 3,821 Total Gas Delivered to O&R Customers 25,488 20,851 22,713 25,660 25,403 Transportation of customer-owned gas Sales for resale 790 710 672 673 468 Sales to electric generating stations 2 10 4 10 26 Off-system sales 164 109 20 73 81 Total Sales 26,444 21,680 23,409 26,416 25,978 Year Ended December 31, 2025 2024 2023 2022 2021 Gas Delivered ($ in millions) Firm sales Full service $277 $187 $230 $245 $190 Firm transportation 41 34 38 45 55 Total Firm Sales 318 221 268 290 245 Interruptible Sales 7 7 6 6 6 Total Gas Delivered to O&R Customers 325 228 274 296 251 Transportation of customer-owned gas Other operating revenues 6 45 23 16 9 Total Sales $331 $273 $297 $312 $260 Average Revenue Per Dt Sold Residential $17.43 $15.44 $16.90 $16.49 $14.09 General $13.43 $11.73 $12.64 $13.62 $11.24 For further discussion of the company’s gas operating revenues and its gas results, see “Results of Operations” in Item 7.
Liability under these laws can be material and may be imposed for contamination from past acts, even though such past acts may have been lawful CON EDISON ANNUAL REPORT 2024 39 at the time they occurred.
Liability under these laws can be material and may be imposed for contamination from past acts, even though such past acts may have been lawful at the time they occurred.
For each of the Companies, the common equity ratio for the last five years was: Common Equity Ratio (Percent of total capitalization) 2024 2023 2022 2021 2020 Con Edison 47.1 49.1 50.9 47.4 48.3 CECONY 46.0 47.9 46.9 47.0 47.9 The credit ratings assigned by Moody’s, S&P and Fitch to the issuer rating and commercial paper rating of Con Edison, and the senior unsecured debt and commercial paper ratings of CECONY and O&R are as follows: Moody's S&P Fitch Con Edison Issuer Rating Baa1 A- BBB+ Commercial Paper P-2 A-2 F2 CECONY Senior Unsecured Debt A3 A- A- Commercial Paper P-2 A-2 F2 O&R Senior Unsecured Debt Baa2 A- A- Commercial Paper P-2 A-2 F2 Credit ratings assigned by rating organizations are expressions of opinion and are not recommendations to buy, sell or hold securities.
See "Liquidity and Capital Resources" in Item 7. 32 CON EDISON ANNUAL REPORT 2025 For each of the Companies, the common equity ratio for the last five years was: Common Equity Ratio (Percent of total capitalization) 2025 2024 2023 2022 2021 Con Edison 48.6 47.1 49.1 50.9 47.4 CECONY 47.8 46.0 47.9 46.9 47.0 The credit ratings assigned by Moody’s, S&P and Fitch to the issuer rating and commercial paper rating of Con Edison, and the senior unsecured debt and commercial paper ratings of CECONY and O&R are as follows: Moody's S&P Fitch Con Edison Issuer Rating Baa1 A- BBB+ Commercial Paper P-2 A-2 F2 CECONY Senior Unsecured Debt A3 A- A- Commercial Paper P-2 A-2 F2 O&R Senior Unsecured Debt Baa1 A- A- Commercial Paper P-2 A-2 F2 Credit ratings assigned by rating organizations are expressions of opinion and are not recommendations to buy, sell or hold securities.
Climate change could affect customer demand for the Companies’ energy services. It might also cause physical damage to the Companies’ facilities and disruption of their operations due to more frequent and more extreme weather. See “The Failure of, or Damage to, the Companies’ Facilities Could Adversely Affect the Companies” in Item 1A.
It might also cause physical damage to the Companies’ facilities and disruption of their operations due to more frequent and more extreme weather. See “The Failure of, or Damage to, the Companies’ Facilities Could Adversely Affect the Companies” in Item 1A.
Steam Supply 33 percent of the steam produced by CECONY in 2024 was supplied by the company’s steam-only generating assets; 46 percent was produced by the company’s steam-electric generating assets, where steam and electricity are primarily cogenerated; and 21 percent was purchased under an agreement with Brooklyn Navy Yard Cogeneration Partners L.P.
Steam Supply 40 percent of the steam produced by CECONY in 2025 was supplied by the company’s steam-only generating assets; 42 percent was produced by the company’s steam-electric generating assets, where steam and electricity are primarily cogenerated; and 18 percent was purchased under an agreement with Brooklyn Navy Yard Cogeneration Partners L.P.
Dielectric fluid reached nearby streets, properties and the New Rochelle Harbor. CECONY, the U.S. Coast Guard, the NYSDEC and other agencies responded to the incident. CECONY stopped the feeder leak on the same day the discharge occurred and has completed the spill recovery and associated cleanup operations. As a result of the discharge, CECONY received third-party damage claims.
CECONY, the U.S. Coast Guard, the NYSDEC and other agencies responded to the incident. CECONY stopped the feeder leak on the same day the discharge occurred and has completed the spill recovery and associated cleanup operations. As a result of the discharge, CECONY received third-party damage claims.
The company has approximately 1,226 MDt of additional natural gas storage capacity available to it at a field in upstate New York, owned and operated by Honeoye, a corporation 71.2 percent owned by Con Edison Transmission and 28.8 percent owned by CECONY. Con Edison Transmission and CECONY are considering strategic alternatives with respect to their investments in Honeoye.
The company has a contract for approximately 1.2 Bcf of additio nal natural gas storage capacity at a field in upstate New York, owned and operated by Honeoye, a corporation 71.2 percent owned by Con Edison Transmission and 28.8 percent owned by CECONY. Con Edison Transmission and CECONY are considering strategic alternatives with respect to their investments in Honeoye.
Con Edison also plans to issue common equity of approximately $1,850 million in 2026 and up to $4,300 million in aggregate during 2027 through 2029, in addition to equity issued under its dividend reinvestment, employee stock purchase and long-term incentive plans.
Con Edison also plans to issue common equity of approximately $1,200 million in 2027 and up to $3,300 million in aggregate during 2028 through 2030, in addition to equity issued under its dividend reinvestment, employee stock purchase and long-term incentive plans.

… 205 more changes not shown on this page.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

29 edited+7 added−2 removed42 unchanged
Biggest changeCON EDISON ANNUAL REPORT 2024 47 A Disruption In The Wholesale Energy Markets, Increased Commodity Costs Or Failure By An Energy Supplier or Customer Could Adversely Affect The Companies. Almost all the electricity and gas the Utilities sell to their full-service customers is purchased through the wholesale energy markets or pursuant to contracts with energy suppliers.
Biggest changeAlmost all the electricity and gas the Utilities sell to their full-service customers is purchased through the wholesale energy markets or pursuant to contracts with energy suppliers. See the description of the Utilities’ energy supply in Item 1.
FERC has the authority to impose penalties on the Utilities and the projects that Con Edison Transmission invests in, which could be substantial, for violations of the Federal Power Act, the Natural Gas Act or related rules, including reliability and cybersecurity rules. Environmental agencies may seek penalties for failure to comply with laws, regulations or permits.
The FERC has the authority to impose penalties on the Utilities and the projects that Con Edison Transmission invests in, which could be substantial, for violations of the Federal Power Act, the Natural Gas Act or related rules, including reliability and cybersecurity rules. Environmental agencies may seek penalties for failure to comply with laws, regulations or permits.
The Companies may also be subject to penalties from other regulatory agencies. The Companies may be subject to new laws, regulations or other requirements or the revision or reinterpretation of such requirements, which could adversely affect them.
The Companies may also be subject to penalties from other regulatory agencies. The Companies may be subject to new laws, regulations or other requirements or the revision or reinterpretation of such laws, regulations or requirements, which could adversely affect them.
The Utilities’ current New York electric and gas rate plans also include revenue decoupling mechanisms, CECONY’s current steam rate plan includes a weather normalization adjustment and the Utilities' New York electric, gas and steam rate plans include provisions for the recovery of energy costs and reconciliation of the actual amount of pension and other postretirement, environmental and certain other costs to amounts reflected in rates.
The Utilities’ New York electric and gas rate plans also include revenue decoupling mechanisms, CECONY’s steam rate plan includes a weather normalization adjustment and the Utilities' New York electric, gas and steam rate plans include provisions for the recovery of energy costs and reconciliation of the actual amount of pension and other postretirement, environmental and certain other costs to amounts reflected in rates.
Cyber threats in general, and in particular, to critical infrastructure, are increasing in sophistication, magnitude and frequency and the techniques used in cyber attacks change rapidly, including from emerging technologies, such as artificial intelligence, and from nation-state and state-sponsored adversaries as well as criminal actors.
Cyber threats in general, and in particular, to critical infrastructure, are increasing in sophistication, magnitude and frequency and the techniques used in cyber attacks change rapidly, including from emerging technologies, such as artificial intelligence (AI), and from nation-state and state-sponsored adversaries as well as criminal actors.
The Utilities estimate that their capital expenditures will exceed $37,200 million over the next five years. The Utilities use internally-generated funds, equity contributions from Con Edison, if any, and external borrowings to fund capital expenditures. Con Edison expects to finance its capital requirements primarily through internally generated funds, the sale of its common shares or external borrowings.
The Utilities estimate that their capital expenditures will exceed $37,100 million over the next five years. The Utilities use internally-generated funds, equity contributions from Con Edison, if any, and external borrowings to fund capital expenditures. Con Edison expects to finance its capital requirements primarily through internally generated funds, the sale of its common shares or external borrowings.
In addition, the Companies are unable to predict changes in regulations, regulatory guidance, legal interpretations, policy positions and implementation actions (including executive orders from the federal administration) relating to climate change that may result from the change in Presidential administrations.
In addition, the Companies are unable to predict changes in regulations, regulatory guidance, legal interpretations, policy positions and implementation actions (including executive orders, memoranda and proclamations from the federal administration) relating to climate change that may result from the change in presidential administrations.
Demand for electric equipment is increasing due to the anticipated demand growth, in part driven by data centers, utilities’ efforts to meet clean energy goals and in order to prepare for more frequent extreme weather events at a time when manufacturing capacity and supply are decreasing. Geopolitical conflicts have also caused supply chain distributions and shortages.
Demand for electric equipment is increasing due to the anticipated demand growth, in part driven by data centers, efforts to meet clean energy goals and in order to prepare for more frequent extreme weather events at a time when manufacturing capacity and supply are decreasing. Geopolitical conflicts have also caused supply chain disruptions and shortages.
The Utilities provide electricity, gas and steam service using energy facilities, many of which are located either in, or close to, densely populated public places. See the description of the Utilities’ facilities in Item 1.
The Utilities provide electricity, gas and steam services using energy facilities, many of which are located either in, or close to, densely populated public places. See the description of the Utilities’ facilities in Item 1.
The Utilities’ current rate plans generally include reconciliation of write-offs of customer accounts receivable balances for specified periods to amounts reflected in rates, with recovery/refund from or to customers via surcharge/sur-credit.
The Utilities’ current rate plans generally include reconciliation of write-offs of customer accounts receivable bal ances for specified periods to amounts reflected in rates, with recovery/refund from or to customers via surcharge/sur-credit.
The Companies’ results of operations can be affected by circumstances or events that are beyond their control. Weather and energy efficiency efforts directly influence the demand for electricity, gas and steam service, and can affect the price of energy commodities. 48 CON EDISON ANNUAL REPORT 2024 Terrorist or other physical attacks or acts of war could damage the Companies' facilities.
The Companies’ results of operations can be affected by circumstances or events that are beyond their control. Weather and energy efficiency efforts directly influence the demand for electricity, gas and steam service, and can affect the price of energy commodities. Terrorist or other physical attacks or acts of war could damage the Companies' facilities.
The Utilities’ actual costs may exceed levels provided for such costs in the rate plans. State utility regulators can initiate proceedings to prohibit the Utilities from recovering from their customers the cost of service (including energy costs and storm restoration costs) that the regulators determine to CON EDISON ANNUAL REPORT 2024 45 have been imprudently incurred.
The Utilities’ actual costs may exceed levels provided for such costs in the rate plans. State utility regulators can initiate proceedings to prohibit the Utilities from recovering from their customers the cost of service (including energy costs and storm restoration costs) that the regulators determine to have been imprudently incurred.
The Utilities have from time to time entered into settlement agreements to resolve various prudence proceedings. The Companies May Be Adversely Affected By Changes To The Utilities’ Rate Plans. The Utilities’ rate plans typically require action by regulators at their expiration dates, which may include approval of new plans with different provisions.
The Utilities have from time to time entered into settlement agreements to resolve various prudence proceedings. CON EDISON ANNUAL REPORT 2025 43 The Companies May Be Adversely Affected By Changes To The Utilities’ Rate Plans. The Utilities’ rate plans typically require action by regulators at their expiration dates, which may include approval of new plans with different provisions.
Long lead times for replacement parts could restrict the availability and delay the construction, maintenance or repair of items that are needed to support the Utilities' normal operations and may result in prolonged customer outages, which could in turn lead to unrecovered costs for such service interruptions.
Long lead times for replacement parts could restrict the availability and delay the construction, maintenance or repair of items that are 46 CON EDISON ANNUAL REPORT 2025 needed to support the Utilities' normal operations and may result in prolonged customer outages, which could in turn lead to unrecovered costs for such service interruptions.
See the description of the Utilities’ energy supply in Item 1. A disruption in the wholesale energy markets or a failure on the part of the Utilities’ energy suppliers or operators of energy delivery systems that connect to the Utilities’ energy facilities could adversely affect their ability to meet their customers’ energy needs and adversely affect the Companies.
A disruption in the wholesale energy markets or a failure on the part of the Utilities’ energy suppliers or operators of energy delivery systems that connect to the Utilities’ energy facilities could adversely affect their ability to meet their customers’ energy needs and adversely affect the Companies.
In addition, a continued increase in accounts receivable balances has impacted and is expected to continue to impact the Companies’ liquidity. See “Aged Accounts Receivable Balances” in Item 7.
In addition, a continued slow recovery of accounts receivable balances has impacted and is expected to continue to impact the Companies’ liquidity. See “Aged Accounts Receivable Balances” in Item 7.
See "Con Edison Transmission," "Environmental Matters - Clean Energy Future" and "Environmental Matters - Climate Change," “Competition” and "CECONY - Gas Peak Demand" in Item 1. The Companies Face Risks Related To Supply Chain Disruptions, Inflation and the Imposition of Tariffs.
See "Con Edison Transmission," "Environmental Matters - Clean Energy Future" and "Environmental Matters - Climate Change," “Competition” and "CECONY - Gas Peak Demand" in Item 1. The Companies Face Risks Related To Supply Chain Disruptions, Inflation and the Imposition of Tariffs (or Subsequent Changes to the Tariffs once Announced or Implemented).
Although the Utilities’ rate plans provide for recovery of purchased power costs, increases in electric and gas commodity prices may contribute to a slower recovery of cash from outstanding customer accounts receivable balances. See “Financial and Commodity Market Risks – Commodity Price Risk” in Item 7. Other Risks: The Companies Face Risks Related To Health Epidemics And Other Outbreaks.
Although the Utilities’ rate plans provide for recovery of purchased power costs, increases in electric and gas commodity prices may contribute to a slower recovery of cash from outstanding customer accounts receivable balances. See "Aged Accounts Receivable Balances" and “Financial and Commodity Market Risks – Commodity Price Risk” in Item 7.
Changes To Tax Laws Could Adversely Affect the Companies. Changes to tax laws, regulations or interpretations thereof could have a material adverse impact on the Companies. Depending on the extent of these changes, the changes could also adversely impact the Companies’ credit ratings and liquidity.
Changes To Tax Laws Could Adversely Affect the Companies. Changes to tax laws, regulations or interpretations thereof could have a material adverse impact on the Companies. Depending on the extent of these CON EDISON ANNUAL REPORT 2025 45 changes, the changes could also adversely impact the Companies’ credit ratings and liquidity.
The need to recover from customers increasing commodity or other costs, taxes or state-mandated assessments or surcharges could adversely affect the Utilities’ opportunity to obtain new rate plans that provide a reasonable rate of return and continue important provisions of current rate plans.
The need to recov er from customers increasing commodity or other costs, taxes or state-mandated assessments or surcharges could adversely affect the Utilities’ opportunity to obtain new rate plans that provide a reasonable rate of return and continue important provisions of current rate plans, while maintaining affordability of services for the Utilities' customers.
Prices of materials, equipment, transportation and other resources have increased as a result of these supply chain disruptions and shortages and may continue to increase as a result of inflation and the imposition of tariffs.
Prices of materials, equipment, transportation and other resources have increased as a result of these supply chain disruptions and shortages and may continue to increase as a result of inflation and the imposition of tariffs (or subsequent changes to the tariffs once announced or implemented).
Economic conditions can affect customers’ demand and ability to pay for service, which could adversely affect the Companies.
Economic conditions can affect customers’ demand and ability to pay for service, which could adversely affect the Companies. See "Energy Affordability" in Item 7.
Changes to the competitive landscape, public policy, laws or regulations (or interpretations thereof), customer behavior or technology could significantly impact the value of the Utilities’ energy delivery facilities and Con Edison Transmission's investment in electric and gas transmission projects.
Con Edison seeks to provide shareholder value through continued dividend growth, supported by earnings growth in regulated utilities and electric transmission projects. Changes to the competitive landscape, public policy, laws or regulations (or interpretations thereof), customer behavior or technology could significantly impact the value of the Utilities’ energy delivery facilities and Con Edison Transmission's investment in electric transmission projects.
Changes in financial market conditions or in the Companies’ credit ratings could adversely affect their ability to raise new capital and the cost thereof. See “Capital Requirements and Resources” in Item 1.
Changes in financial market conditions or in the Companies’ credit ratings could adversely affect their ability to raise new capital and the cost thereof. See “Capital Requirements and Resources” in Item 1. A Disruption In The Wholesale Energy Markets, Increased Commodity Costs Or Failure By An Energy Supplier or Customer Could Adversely Affect The Companies.
Pandemic illness could disrupt the Utilities' employees and contractors from providing essential utility services and adversely impact the Companies' liquidity, financial condition and results of operations. See “Aged Accounts Receivable Balances” in Item 7. The Companies’ Strategies May Not Be Effective To Address Changes In The External Business Environment.
Other Risks: The Companies Face Risks Related To Health Epidemics And Other Outbreaks. Pandemic illness could disrupt the Utilities' employees and contractors from providing essential utility services and adversely impact the Companies' liquidity, financial condition and results of operations. See “Aged Accounts Receivable Balances” in Item 7.
The Utilities' ability to gain access to additional energy supplies, if needed, depends on effective markets and siting approvals for developer projects, which the Utilities do not control.
The Utilities' ability to gain access to additional energy supplies, if needed, depends on effective markets and siting approvals for developer projects, which the Utilities do not control. Extreme cold weather has negatively impacted, and may in the future negatively impact, energy infrastructure in the northeastern United States, including the interstate natural gas system.
Many services, including certain information technology services and certain work on the Utilities’ electric and gas systems and CECONY’s steam system, are provided to the Companies by third-party contractors.
The Companies have developed business processes and use information and communication systems and enterprise platforms for operations, customer service, legal compliance, personnel, accounting, planning and other matters. Many services, including certain information technology services and certain work on the Utilities’ electric and gas systems and CECONY’s steam system, are provided to the Companies by third-party contractors.
The failure to identify, plan and execute strategies to address changes in the external business environment could have a material adverse impact on the Companies. Con Edison seeks to provide shareholder value through continued dividend growth, supported by earnings growth in regulated utilities and electric transmission projects.
The Companies’ Strategies May Not Be Effective To Address Changes In The External Business Environment. The failure to identify, plan and execute strategies to address changes in the external business environment could have a material adverse impact on the Companies.
Although none of these incidents has had a material impact on the Companies, the scope and impact of any future incident cannot be 46 CON EDISON ANNUAL REPORT 2024 predicted. In the event of a significant cybersecurity incident or attack, the Companies’ business strategy, results of operations or financial condition could be materially affected.
Although none of these incidents has had a material impact on the Companies, the scope and impact of any future incident cannot be predicted.
Removed
The Failure of Processes and Systems, the Failure to Retain and Attract Employees and Contractors, and Their Negative Performance Could Adversely Affect The Companies. The Companies have developed business processes and use information and communication systems and enterprise platforms for operations, customer service, legal compliance, personnel, accounting, planning and other matters.
Added
In the event of a significant cybersecurity incident or attack, the Companies’ business strategy, results of o perations or financial condition could be materially affected. 44 CON EDISON ANNUAL REPORT 2025 AI is an emerging area of technology that has the potential to impact various aspects of the Companies’ business operations and customer interactions.
Removed
Extreme cold weather, including events such as the Winter Storm Elliott that occurred in December 2022, has negatively impacted, and may in the future negatively impact, energy infrastructure in the northeastern United States, including the interstate natural gas system.
Added
Generative AI technologies are still in their early stages of development and deployment. Ineffective or inadequate AI development or deployment practices by the Companies or third-party vendors could result in unintended consequences.
Added
While the Companies seek contractual protections with third-party vendors regarding the use of AI technology, the Companies may not have full awareness of, or control or visibility over, the quality, performance, security or compliance of the products and services that incorporate AI-related technology used by such vendors.
Added
AI algorithms that the Companies or their third-party vendors use may be flawed or may be based on datasets that are biased or insufficient.
Added
These limitations or failures, or inaccurate results generated as a result of the Companies’ employees’, contractors’ or vendors’ use or misuse of AI technologies could lead to operational interruptions or otherwise adversely affect the Companies’ businesses, reputation or financial results. Developing, testing, and deploying resource-intensive AI systems may require additional investment and increase the Companies’ costs.
Added
In addition, the rapidly evolving nature of AI technologies may cause new laws and regulations to be enacted which could dramatically affect business practices, including the costs to comply with such new laws and regulations.
Added
The future development of AI technologies and the nature of any related new laws and regulations, and their costs and consequences, cannot be reasonably predicted at this time. The Failure of Processes and Systems, the Failure to Retain and Attract Employees and Contractors, and Their Negative Performance Could Adversely Affect The Companies.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

10 edited+4 added−1 removed14 unchanged
Biggest changeCON EDISON ANNUAL REPORT 2024 49 • Training and Compliance : The Companies train employees regularly on potential cybersecurity threats; monitor network and computing systems; collaborate with government and industry partners on threat mitigation; collaborate with local, state and federal agencies and utility industry colleagues to identify and employ tools that seek to protect the Companies’ operational and information systems and the personal information of their customers and employees from cybersecurity threats; and regularly conduct and participate in exercises to test and further develop prevention and responses to potential cyber and physical threats, both internally and through sector-level and cross-sector exercises led by industry or the U.S. government.
Biggest changeThe Companies also maintain insurance for cybersecurity incidents, with scope and limits evaluated annually. • Disclosure Controls and Procedures : Management has developed protocols and procedures to share information regarding cybersecurity incidents with the Chief Information Security Officer, Chief Privacy Officer, the Companies’ Disclosure Committee and the Law Department to enable assessments related to disclosure and reporting obligations in compliance with federal and state cybersecurity and data privacy regulations. • Incident Response : The Companies have established and maintain incident response plans aligned with NIST Special Publication 800-61r3 that set forth procedures for their response to cybersecurity incidents and data breaches and test and evaluate such plans on an ongoing basis. • Training and Compliance : The Companies train employees regularly on potential cybersecurity threats; monitor network and computing systems; collaborate with government and industry partners on threat mitigation; collaborate with local, state and federal agencies and utility industry colleagues to identify and employ tools that seek to protect the Companies’ operational and information systems and the personal information of their customers and employees from cybersecurity threats; and regularly conduct and participate in exercises to test and further develop prevention and responses to potential cyber and physical threats, both internally and through sector-level and cross-sector exercises led by industry or the U.S. government.
The Companies then use the findings from these assessments to inform cybersecurity risk mitigation activities, including long-term strategic and short-term tactical efforts, and capital allocation decisions. • Independent Advisors : The Companies engage consultants to assess, identify and manage material risks from cybersecurity threats on a regular basis.
The Companies then use the findings from these assessments to inform cybersecurity risk mitigation activities, including long-term strategic and short-term tactical efforts, and capital allocation decisions. • Independent Advisors; Regulatory Audits : The Companies engage consultants to assess, identify and manage material risks from cybersecurity threats on a regular basis.
These safeguards include, among other things, intrusion prevention and detection systems, anti-malware functionality and ongoing vulnerability assessments. • Review and Assessment : The Companies assess the severity, likelihood and controllability of cybersecurity threats and consider risk outlook, recent external and internal cybersecurity events and audit findings to assess their overall cybersecurity risk management process.
These safeguards include, among other things, intrusion prevention and detection systems, anti-malware functionality and ongoing vulnerability assessments, and a dedicated 24/7/365 Cybersecurity Operations Center that monitors the Companies’ assets and networks. • Review and Assessment : The Companies assess the severity, likelihood and controllability of cybersecurity threats and consider risk outlook, recent external and internal cybersecurity events and audit findings to assess their ov erall cybersecurity risk management process.
Role of Management in Cybersecurity Risk Management The Companies have established a cybersecurity team that manages the Companies’ cybersecurity risk. The cybersecurity team is led by the Vice President and Chief Information Security Officer, a technology leader with over 15 years of experience in information technology and cybersecurity.
The cybersecurity team is led by the Vice President and Chief Information Security Officer, a technology leader with over 15 years of experience in information technology and cybersecurity.
The Chief Privacy Officer reports to the Vice President and Chief Ethics and Compliance Officer, an attorney and executive who has over 25 years of experience in the legal, ethics, and compliance fields and is responsible for the company’s ethics and compliance program and department, including data privacy compliance.
The Chief Privacy Officer reports to the Vice President and Chief Ethics and Compliance Officer, an attorney and executive who has over 25 years of experience in the legal, ethics, and compliance fields and is responsible for the company’s ethics and compliance program and department, including data privacy compliance. 48 CON EDISON ANNUAL REPORT 2025 The Chief Ethics and Compliance Officer reports to the Senior Vice President and General Counsel, the Companies’ lead attorney and a senior executive with over 20 years of risk management, corporate governance and team leadership experience.
The Audit Committee also meets annually with the Senior Vice President and Chief Information Officer in executive session, without management present. At each regular Board meeting, the Board reviews a cybersecurity dashboard prepared by the Senior Vice President and Chief Information Officer that includes updates on a range of cybersecurity metrics and topics.
At each regular Board meeting, the Board receives a cybersecurity risk update and reviews a cybersecurity dashboard prepared by the Senior Vice President and Chief Information Officer that includes updates on a range of cybersecurity metrics and topics and, on a quarterly basis, the Board receives in-depth presentations on cybersecurity topics.
Item 1C: Cybersecurity Cybersecurity Risk Management The Companies have identified cybersecurity as a key enterprise risk. As operators of critical energy infrastructure, the Companies require the continuous operation of information systems and network infrastructure. Cybersecurity threats are assessed, identified and managed as part of the Companies’ corporate-wide Enterprise Risk Management (ERM) program.
Item 1C: Cybersecurity Cybersecurity Risk Management The Compa nies have identified cybersecurity as a key enterprise risk. As operators of critical energy infrastructure, the Companies require the continuous operation and availability of information systems and network infrastructure while protecting confidentiality and integrity of the data.
The ERM program establishes processes to identify emerging issues; monitor, assess and mitigate known risks; align risk exposure to organizational priorities; and inform business decisions and resource allocation; and leverages, among others, the National Institute of Standards and Technology framework to help inform the Companies' processes around cybersecurity risk management.
Cybersecurity threats are assessed, identified and managed through the Companies' Cybersecurity Program, which is an integral part of the Companies’ corporate-wide Enterprise Risk Management (ERM) program. The ERM program establishes processes to identify emerging issues; monitor, assess and mitigate known risks; align risk exposure to organizational priorities; and inform business decisions and resource allocation.
The consultants are engaged to, among other things, assess the process by which cybersecurity threats are identified; provide incident response and forensic services; review and analyze cybersecurity controls and infrastructure; and provide threat emulation services. • Third-Party Risk Assessments : The Companies’ vendors and suppliers participate in a third-party risk assessment to periodically validate such party’s profile across multiple risk domains.
The consultants are engaged to, among other things, assess the process by which cybersecurity threats are identified; provide incident response and forensic services; review and analyze cybersecurity controls and infrastructure; provide threat emulation services, perform external penetration testing periodically; and assess the maturity of the Companies’ Cybersecurity Program against the NIST CSF and assess alignment with ISO 27001/27002.
In addition, the Companies typically impose contractual obligations on their vendors and suppliers related to privacy, confidentiality, and data security based on their access to the Companies’ data, operational and information technology systems and sensitive information and the personal information of their customers and employees. • Disclosure Controls and Procedures : Management has developed protocols and procedures to share information regarding cybersecurity incidents with the Chief Information Security Officer, Chief Privacy Officer, the Companies’ Disclosure Committee and the Law Department to enable assessments related to disclosure and reporting obligations in compliance with federal and state cybersecurity and data privacy regulations. • Incident Response : The Companies have established and maintain incident response plans that set forth procedures for their response to cybersecurity incidents and data breaches and test and evaluate such plans on an ongoing basis.
In addition, the Companies typically impose contractual obligations on their vendors and suppliers related to privacy, confidentiality, and data security based on their access to the Companies’ data, operational and information technology systems and sensitive information and the personal information of their customers and employees.
Removed
The Chief Ethics and Compliance Officer reports to the Senior Vice President and General Counsel, the Companies’ lead attorney and a senior executive with over 20 years of risk management, corporate governance and team leadership experience.
Added
The Cybersecurity program is aligned with, and audited against, the National Institute of Standards and Technology (NIST) Cybersecurity Framework (CSF) and the International Organization for Standardization (ISO) 27001/27002.
Added
Specific portions of the Companies’ cybersecurity policies, processes, and standards are audited by the CON EDISON ANNUAL REPORT 2025 47 FERC, North American Electric Reliability Corporation, TSA, Cybersecurity and Infrastructure Security Agency, NYSPSC, and United States Coast Guard on a regular basis, with at least one regulatory agency conducting an audit periodically. • Third-Party Risk Assessments : The Companies’ vendors and suppliers participate in a third-party risk assessment to periodically validate such party’s profile across multiple risk domains.
Added
Role of Management in Cybersecurity Risk Management The Companies have implemented a “defense-in-depth” approach to governing, preventing, detecting, identifying, mitigating, responding to, and recovering from, cybersecurity threats and incidents, by establishing a cross-functional cybersecurity team that manages the Companies’ cybersecurity risk.
Added
The Audit Committee also meets annually with the Senior Vice President and Chief Information Officer in executive session, without management present.

Item 2. Properties

Properties — owned and leased real estate

1 edited+0 added−0 removed3 unchanged
Biggest changeItem 2: Properties Con Edison Con Edison has no significant properties other than those of the Utilities. 50 CON EDISON ANNUAL REPORT 2024 For information about the capitalized cost of the Companies’ utility plant, net of accumulated depreciation, see “Plant and Depreciation” in Note A to the financial statements in Item 8 (which information is incorporated herein by reference).
Biggest changeItem 2: Properties Con Edison Con Edison has no significant properties other than those of the Utilities. For information about the capitalized cost of the Companies’ utility plant, net of accumulated depreciation, see “Plant and Depreciation” in Note A to the financial statements in Item 8 (which information is incorporated herein by reference).

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

4 edited+0 added−0 removed1 unchanged
Biggest changeDonnley 60 1/20 to present – Senior Vice President and General Counsel of Con Edison and CECONY Jennifer Hensley 46 9/22 to present – Senior Vice President – Corporate Affairs of CECONY 7/22 to 9/22 – Senior Vice President of CECONY 1/21 to 7/22 - Vice President, Head of Government Relations - Lyft 9/19 to 1/21 - Senior Director, Public Policy - Lyft Joseph Miller 62 1/21 to present – Vice President and Controller of Con Edison and CECONY 1/21 to present – Chief Financial Officer and Controller of O&R 8/06 to 12/20 – Assistant Controller of Corporate Accounting of CECONY Kamran Ziaee 58 12/24 to present – Senior Vice President and Chief Information Officer of Con Edison and CECONY 08/19 to 11/24 – Senior Vice President, Technology Strategy & Planning - Verizon 52 CON EDISON ANNUAL REPORT 2024 Part II
Biggest changeDonnley 61 1/20 to present – Senior Vice President and General Counsel of Con Edison and CECONY Jennifer Hensley 47 9/22 to present – Senior Vice President – Corporate Affairs of CECONY 7/22 to 9/22 – Senior Vice President of CECONY 1/21 to 7/22 - Vice President, Head of Government Relations - Lyft 9/19 to 1/21 - Senior Director, Public Policy - Lyft Joseph Miller 63 1/21 to present – Vice President and Controller of Con Edison and CECONY 1/21 to present – Chief Financial Officer and Controller of O&R 8/06 to 12/20 – Assistant Controller of Corporate Accounting of CECONY Kamran Ziaee 60 12/24 to present – Senior Vice President and Chief Information Officer of Con Edison and CECONY 08/19 to 11/24 – Senior Vice President, Technology Strategy & Planning - Verizon 50 CON EDISON ANNUAL REPORT 2025 Part II
Cawley 60 1/22 to present - Chairman of the Board, President and Chief Executive Officer and Director of Con Edison, Chairman of the Board, Chief Executive Officer and Trustee of CECONY 12/20 to 12/21 – President and Chief Executive Officer and Director of Con Edison and Chief Executive Officer and Trustee of CECONY 1/18 to 12/20 – President of CECONY Kirkland Andrews 57 7/24 to present – Senior Vice President and Chief Financial Officer of Con Edison and CECONY 2/21 to 6/24 – Executive Vice President and Chief Financial Officer of Evergy Inc 9/11 to 1/21 – Executive Vice President and Chief Financial Officer of NRG Energy, Inc.
Cawley 61 1/22 to present - Chairman of the Board, President and Chief Executive Officer and Director of Con Edison, Chairman of the Board, Chief Executive Officer and Trustee of CECONY 12/20 to 12/21 – President and Chief Executive Officer and Director of Con Edison and Chief Executive Officer and Trustee of CECONY 1/18 to 12/20 – President of CECONY Kirkland Andrews 58 7/24 to present – Senior Vice President and Chief Financial Officer of Con Edison and CECONY 2/21 to 6/24 – Executive Vice President and Chief Financial Officer of Evergy Inc 9/11 to 1/21 – Executive Vice President and Chief Financial Officer of NRG Energy, Inc.
Matthew Ketschke 53 1/21 to present – President of CECONY 11/17 to 12/20 – Senior Vice President – Customer Energy Solutions Michele O'Connell 49 4/24 to present – President and Chief Executive Officer of O&R Robert Sanchez 59 4/24 to present – President, Shared Services of CECONY 12/17 to 4/24 – President and Chief Executive Officer of O&R Stuart Nachmias 60 1/20 to present – President and Chief Executive Officer of Con Edison Transmission Deneen L.
Matthew Ketschke 54 1/21 to present – President of CECONY 11/17 to 12/20 – Senior Vice President – Customer Energy Solutions Michele O'Connell 50 4/24 to present – President and Chief Executive Officer of O&R Robert Sanchez 60 4/24 to present – President, Shared Services of CECONY 12/17 to 4/24 – President and Chief Executive Officer of O&R Stuart Nachmias 61 1/20 to present – President and Chief Executive Officer of Con Edison Transmission Deneen L.
Item 4: Mine Safety Disclosures Not applicable. CON EDISON ANNUAL REPORT 2024 51 Information about our Executive Officers The following table sets forth certain information about the executive officers of Con Edison as of February 20, 2025.
Item 4: Mine Safety Disclosures Not applicable. CON EDISON ANNUAL REPORT 2025 49 Information about our Executive Officers The following table sets forth certain information about the executive officers of Con Edison as of February 19, 2026.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

8 edited+0 added−1 removed2 unchanged
Biggest changeThe dividends declared by CECONY in 2023 and 2024 are shown in its Consolidated Statement of Shareholder’s Equity included in Item 8 (which information is incorporated herein by reference).
Biggest changeCECONY The outstanding shares of CECONY’s Common Stock ($2.50 par value) are the only class of common equity of CECONY. They are held by Con Edison and are not traded. The dividends declared by CECONY in 2024 and 2025 are shown in its Consolidated Statement of Shareholder’s Equity included in Item 8 (which information is incorporated herein by reference).
Item 5: Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Con Edison Con Edison’s Common Shares ($.10 par value), the only class of common equity of Con Edison, are traded on the New York Stock Exchange under the trading symbol "ED." As of January 31, 2025, there were 34,407 holders of record of Con Edison’s Common Shares.
Item 5: Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Con Edison Con Edison’s common shares ($.10 par value), the only class of common equity of Con Edison, are traded on the New York Stock Exchange under the trading symbol "ED." As of January 31, 2026 , there were 32,907 holders of record of Con Edison’s common shares.
Con Edison paid quarterly dividends of 81 cents per Common Share in 2023 and quarterly dividends of 83 cents per Common Share in 2024. On Ja nuary 16, 2025, Con Edison declared a quarterly dividend of 85 cents per Common Share that is payable on Mar ch 14, 2025.
Con Edison paid quarterly dividends of 83 cents per Common Share in 2024 and quarterly dividends of 85 cents per common share in 2025. On Ja nuary 27, 2026, Con Edison declared a quarterly dividend of 88.75 cents per common share that is payable on Mar ch 16, 2026.
For additional information about the payment of dividends by the Utilities to Con Edison, and restrictions thereon, see “Dividends” in Note C to the financial statements in Item 8 (which information is incorporated herein by reference). During 2024, the market price of Con Edison’s Common Shares decreased by 1.91 percent (from $90.97 at year-end 2023 to $89.23 at year-end 2024).
For additional information about the payment of dividends by the Utilities to Con Edison, and restrictions thereon, see “Dividends” in Note C to the financial statements in Item 8 (which information is incorporated herein by reference). During 2025, the market price of Con Edison’s common shares increased by 11.31 percent (from $89.23 at year-end 2024 to $99.32 at year-end 2025).
By comparison, the S&P 500 Index increased 23.31 percent and the S&P 500 Utilities Index increased 19.58 percent. The total return to Con Edison’s common shareholders during 2024, including both investment of dividends and the change in price, was 1.58 percent.
By comparison, the S&P 500 Index increased 16.39 percent and the S&P 500 Utilities Index increased 12.69 percent. The total return to Con Edison’s common shareholders during 2025, including both investment of dividends and the change in price, was 15.16 percent.
By comparison, the total returns for the S&P 500 Index and the S&P 500 Utilities Index were 25.00 percent and 23.43 percent, respectively.
By comparison, the total returns for the S&P 500 Index and the S&P 500 Utilities Index were 17.86 percent and 16.04 percent, respectively.
For the five-year period 2020 through 2024 inclusive, Con Edison’s shareholders’ total return was 18.59 percent, compared with total returns for the S&P 500 Index and the S&P 500 Utilities Index of 96.85 percent and 37.79 percent, respectively.
For the five-year period 2021 through 2025 inclusive, Con Edison’s shareholders’ total return was 64.48 percent, compared with total returns for the S&P 500 Index and the S&P 500 Utilities Index of 95.98 percent and 59.06 percent, respectively.
Years Ended December 31, Company / Index 2019 2020 2021 2022 2023 2024 Consolidated Edison, Inc. 100.00 83.01 102.07 118.04 116.72 118.52 S&P 500 Index 100.00 118.40 152.39 124.79 157.59 197.02 S&P Utilities 100.00 100.48 118.24 120.09 111.59 137.73 Based on $100 invested at December 31, 2019, reinvestment of all dividends in equivalent shares of stock and market price changes on all such shares.
Years Ended December 31, Company / Index 2020 2021 2022 2023 2024 2025 Consolidated Edison, Inc. 100.00 122.96 142.21 140.61 142.79 164.42 S&P 500 Index 100.00 128.71 105.40 133.10 166.40 196.16 S&P Utilities 100.00 117.67 119.51 111.05 137.07 159.06 CON EDISON ANNUAL REPORT 2025 51 Based on $100 invested at December 31, 2020, reinvestment of all dividends in equivalent shares of stock and market price changes on all such shares.
Removed
CON EDISON ANNUAL REPORT 2024 53 CECONY The outstanding shares of CECONY’s Common Stock ($2.50 par value) are the only class of common equity of CECONY. They are held by Con Edison and are not traded.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

153 edited+31 added−43 removed62 unchanged
Biggest changeThe following table presents the estimated effect of major factors on earnings per share and net income for common stock for the year ended December 31, 2024 as compared with 2023. 58 CON EDISON ANNUAL REPORT 2024 Variation for the Year Ended December 31, 2024 vs. 2023 Net Income for Common Stock (Net of Tax) (Millions of Dollars) Earnings per Share CECONY (a) Higher electric rate base $115 $0.33 Steam rate plan effective November 2023 72 0.21 Higher gas rate base 19 0.05 Change in incentives earned under the electric and gas earnings adjustment mechanisms 14 0.04 Higher electric, gas and steam operations and maintenance costs (54) (0.16) Higher regulatory commission expense and other corporate expenses (16) (0.04) Impact of the NYSPSC order denying an April 2023 petition by CECONY that requested permission to capitalize costs to implement its new customer billing and information system (10) (0.03) Accretive effect of share repurchase — 0.03 Other 2 — Total CECONY 142 0.43 O&R (a) Electric base rate increase 21 0.06 Gas base rate increase 2 — Higher interest expense (6) (0.02) Other (9) (0.02) Total O&R 8 0.02 Clean Energy Businesses (b) Total Clean Energy Businesses (22) (0.07) Con Edison Transmission Income tax adjustment due to AFUDC from MVP 5 0.01 Accretion of the basis difference of Con Edison's equity investment in MVP 5 0.01 Other (2) — Total Con Edison Transmission 8 0.02 Other, including parent company expenses Gain and other impacts related to the sale of the Clean Energy Businesses (795) (2.28) Lower interest income (23) (0.07) Higher taxes other than income taxes (10) (0.03) Higher interest expense (3) (0.01) HLBV effects 8 0.02 Other (12) (0.02) Total Other, including parent company expenses (c) (835) (2.39) Total Reported (GAAP basis) $(699) $(1.99) a.
Biggest changeCON EDISON ANNUAL REPORT 2025 57 Variation for the Year Ended December 31, 2025 vs. 2024 Net Income for Common Stock (Net of Tax) (Millions of Dollars) Earnings per Share CECONY (a) Higher electric rate base $97 $0.28 Higher income from allowance for funds used during construction 31 0.09 Higher gas rate base 20 0.06 Lower other corporate expenses 3 0.01 Dilutive effect of issuance of common shares — (0.18) Higher interest expense (38) (0.11) Impact of the May 2024 NYSPSC order denying CECONY's request to capitalize costs to implement its new customer billing and information system 37 0.11 Other 8 0.02 Total CECONY 158 0.28 O&R (a) Gas base rate increase 10 0.03 Higher interest expense on long-term debt (6) (0.02) Other — (0.01) Total O&R 4 — Con Edison Transmission Transaction costs associated with the strategic alternatives review of Con Edison's equity investments in MVP and Honeoye (12) (0.03) Impairment loss related to investment in Honeoye (10) (0.03) Remeasurement of deferred state income taxes related to the previously recorded impairment of MVP (7) (0.02) Income tax adjustment in 2024 due to AFUDC from MVP (5) (0.02) Accretion of the basis difference of Con Edison's equity investment in MVP 4 0.02 Other (1) (0.01) Total Con Edison Transmission (31) (0.09) Other, including parent company expenses (b) Loss (gain) and other impacts related to the sale of the Clean Energy Businesses 51 0.14 Lower accrued commitment to Consolidated Edison Foundation, Inc. 9 0.03 Lower taxes other than income taxes 5 0.01 HLBV effects 4 0.01 Gain on the sale of an interest in a solar electric production project 3 0.01 Other — 0.01 Total Other, including parent company expenses 72 0.21 Total Reported (GAAP basis) $203 $0.40 (a) Under the revenue decoupling mechanisms in the Utilities’ New York electric and gas rate plans revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved.
Pursuant to the IRA, corporations are entitled to a tax credit (minimum tax credit) to the extent the CAMT liability exceeds the regular tax liability. This amount can be carried forward indefinitely and used in future years when regular tax exceeds the CAMT.
Pursuant to the IRA, corporations are entitled to a tax credit (minimum tax credit) to the extent the CAMT liability exceeds the regular tax liability. This amount can be carried forward indefinitely and used in future years when regular tax liability exceeds the CAMT liability.
CECONY's surcharge recoveries for late payment charges and write-offs of accounts receivables for steam will each be subject to an annual cap that produces no more than half percent (0.5 percent) total customer bill impact (estimated to be $2.5 million, $3.0 million and $3.5 million for 2024, 2025 and 2026, respectively).
CECONY's surcharge recoveries for late payment charges and write-offs of accounts receivables for steam will each be subject to an annual cap that produces no more than a half percent (0.5 percent) total customer bill impact (estimated to be $2.5 million, $3.0 million and $3.5 million for 2024, 2025 and 2026, respectively).
In accordance with the Statement of Policy issued by the NYSPSC and its current electric, gas and steam rate plans, CECONY defers for payment to or recovery from customers the difference between the pension and other postretirement benefit expenses and the amounts for such expenses reflected in rates. O&R also defers such difference pursuant to its New York rate plans.
In accordance with the Statement of Policy issued by the NYSPSC and its electric, gas and steam rate plans, CECONY defers for payment to or recovery from customers the difference between the pension and other postretirement benefit expenses and the amounts for such expenses reflected in rates. O&R also defers such difference pursuant to its New York rate plans.
New York Legislation In April 2021, New York passed a law that increased the corporate franchise tax rate on business income from 6.5 percent to 7.25 percent, retroactive to January 1, 2021, for taxpayers with taxable income greater than $5 million.
In April 2021, New York passed a law that increased the corporate franchise tax rate on business income from 6.5 percent to 7.25 percent, retroactive to January 1, 2021, for taxpayers with taxable income greater than $5 million.
Aged Accounts Receivable Balances At December 31, 2024, CECONY’s and O&R’s customer accounts receivables balances of $2,947 million and $113 million, respectively, included aged accounts receivables (balances outstanding in excess of 60 days) of $1,652 million and $32 million, respectively.
At December 31, 2024, CECONY’s and O&R’s customer accounts receivables balances of $2,947 million and $113 million, respectively, included aged accounts receivables (balances outstanding in excess of 60 days) of $1,652 million and $32 million, respectively.
CECONY's surcharge recoveries for late payment charges and write-offs of accounts receivable balances will, collectively, be subject to separate annual caps for electric and gas that produce no more than a half percent (0.5 percent) total customer bill impact per commodity (estimated for electric to be $57.3 million, $60.3 million, $62.6 million for 2023, 2024 and 2025, respectively, and for gas to be $14.8 million, $15.9 million and $16.8 million for 2023, 2024 and 2025, respectively).
CECONY's surcharge recoveries for late payment charges and write-offs of accounts receivable balances will, collectively, be subject to separate annual caps for electric and gas that produce no more than a half percent (0.5 percent) total customer bill impact per commodity (estimated for electric to be $57.3 million, $60.3 million, $62.6 milli on for 2023, 2024 and 2025, respectively, and for gas to be $14.8 million, $15.9 million and $16.8 million for 2023, 2024 and 2025, respectively).
Net income for common stock and earnings per share for the year ended December 31, 2024 also includes $(3) million (after-tax) or $(0.01) a share (after-tax) of income tax impact on the effects of HLBV accounting for tax equity investments in certain renewable electric projects.
Net income for common stock and earnings per share for the year ended December 31, 2024 also includes $(3) million (after-tax) or $(0.01) a share (after-tax) of income tax impact on the effects of HLBV accounting for tax equity interests in certain renewable electric projects.
The Companies’ policy is to fund their pension and other postretirement benefit accounting costs to the extent tax deductible, and for the Utilities, to the extent these costs are recovered under their rate plans. The Companies were not required to make cash contributions to the pension plan in 2024 under funding regulations and tax laws.
The Companies’ policy is to fund their pension and other postretirement benefit accounting costs to the extent tax deductible, and for the Utilities, to the extent these costs are recovered under their rate plans. The Companies were not required to make cash contributions to the pension plan in 2025 under funding regulations and tax laws.
See Notes A, E and F to the financial statements in Item 8 for information about the Companies’ pension and other postretirement benefits, the actuarial assumptions, actual performance, amortization of investment and other actuarial gains and losses and calculated plan costs for 2024, 2023 and 2022.
See Notes A, E and F to the financial statements in Item 8 for information about the Companies’ pension and other postretirement benefits, the actuarial assumptions, actual performance, amortization of investment and other actuarial gains and losses and calculated plan costs for 2025, 2024 and 2023.
As used in this report, the term the “Companies” refers to Con Edison and CECONY. CECONY is a subsidiary of Con Edison and, as such, information in this management’s discussion and analysis about CECONY applies to Con Edison. This combined MD&A generally discusses 2024 and 2023 items and year-to-year comparisons between 2024 and 2023.
As used in this report, the term the “Companies” refers to Con Edison and CECONY. CECONY is a subsidiary of Con Edison and, as such, information in this management’s discussion and analysis about CECONY applies to Con Edison. This combined MD&A generally discusses 2025 and 2024 items and year-to-year comparisons between 2025 and 2024.
(c) Other gas operating revenues generally reflect changes in the revenue decoupling mechanism and weather normalization clause current asset or regulatory liability and changes in regulatory assets and liabilities in accordance with other provisions of CECONY’s rate plans.
(c) Other gas operating revenues generally reflect changes in the revenue decoupling mechanism and weather normalization clause current asset or regulatory liability and changes in regulatory assets and liabilities in accordance with other provisions of CECONY’s rate plan.
CECONY has a $500 million 364-day revolving credit agreement (the CECONY Credit Agreement) in place under which banks are committed to provide loans on a revolving credit basis until March 2025, subject to certain conditions.
CECONY has a $500 million 364-day revolving credit agreement (the CECONY Credit Agreement) in place under which banks are committed to provide loans on a revolving credit basis until March 2026, subject to certain conditions.
CECONY has the option to prepay the term loans issued under the CECONY Term Loan Credit Agreement prior to maturity.
CECONY has the option to prepay the term loan issued under the CECONY Term Loan Credit Agreement prior to maturity.
For the Utilities’ customer accounts receivable allowance for uncollectible accounts, including current accounts receivable and accrued unbilled revenue, past events considered include write-offs relative to customer accounts receivable; current conditions include macro-and micro-economic conditions related to trends in the local economy, bankruptcy rates and current and aged customer accounts receivable balances, including final balances, among other factors; and forecasts about the future include assumptions related to the level of write-offs and recoveries.
For the Utilities’ allowance for uncollectible accounts for customer accounts receivable, which includes accrued unbilled revenue, past events considered include write-offs relative to customer accounts receivable; current conditions include macro-and micro-economic conditions related to trends in the local economy, reconnection rates and current and aged customer accounts receivable balances, including final balances, among other factors; and forecasts about the future include assumptions related to the level of write-offs and recoveries.
The Utilities expect electric usage to increase and gas and steam usage to decrease in their service territories as federal, state and local laws and policies are enacted and implemented that aim to reduce the carbon intensity of the energy that is consumed in their respective jurisdictions.
The Utilities expect electric usage to increase and gas and steam usage to decrease in their service territories as laws and policies are enacted and implemented that aim to reduce the carbon intensity of the energy that is consumed in their respective jurisdictions.
Although management believes that current estimates for deferred tax assets and liabilities are reasonable, actual results could differ from these estimates for several reasons, including, but not limited to: a change in forecasted financial condition and/or results of operations; changes in income tax laws, enacted tax rates or amounts subject to income tax or state apportionments; the form, structure, and timing of asset or stock sales or dispositions; changes in the regulatory treatment of any tax reform benefits; and changes resulting from audits and examinations by taxing authorities.
Although management believes that current estimates for deferred tax assets and liabilities are reasonable, actual results could differ from these estimates for several reasons, including, but not limited to: a change in forecasted financial condition and/or results of operations; changes in income tax laws, enacted tax rates or amounts subject to income tax or state apportionments; the form, CON EDISON ANNUAL REPORT 2025 77 structure, and timing of asset or stock sales or dispositions; changes in the regulatory treatment of any tax reform benefits; and changes resulting from audits and examinations by taxing authorities.
Con Edison and CECONY estimate that at December 31, 2024 and 2023 , a 10 percent increase in interest rates applicable to its variable rate debt would result in an increase in annual interest expense of $15 million and $12 million, respectively.
At December 31, 2024, Con Edison and CECONY estimated that a 10 percent increase in interest rates applicable to its variable rate debt would result in an increase in annual interest expense of $15 million and $12 million, respectively.
The following table summarizes key components of CECONY's cash flows used in investing activities for the years ended December 31, 2024 and December 31, 2023.
The following table summarizes key components of CECONY's cash flows used in investing activities for the years ended December 31, 2025 and December 31, 2024.
The following table summarizes key components of O&R's cash flows from financing activities for the years ended December 31, 2024 and December 31, 2023.
The following table summarizes key components of O&R's cash flows from financing activities for the years ended December 31, 2025 and December 31, 2024.
For discussions of 2022 items and year-to-year comparisons between 2023 and 2022, see “Item 7: Management's Discussion and Analysis of Financial Condition and Results of Operations,” in Con Edison’s and CECONY’s combined Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 15, 2024.
For discussions of 2023 items and year-to-year comparisons between 2024 and 2023, see “Item 7: Management's Discussion and Analysis of Financial Condition and Results of Operations,” in Con Edison’s and CECONY’s combined Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on February 20, 2025.
FERC has authorized CECONY through April 30, 2026 and O&R through July 31, 2026 to issue short-term borrowings for a period of not more than 12 months, in an amount not to exceed $4,000 million and $250 million, respectively, at prevailing market rates.
The FERC has authorized CECONY through April 30, 2026 and O&R through July 31, 2026 to issue short-term borrowings for a period of not more than 12 months, in an amount not to exce ed $4,000 million and $250 million, respectively, at prevailing market rates.
Unde r CECONY’s current electric, gas and steam rate plans, variations in actual variable rate tax-exempt debt interest expense, including costs associated with the refinancing of the variable rate tax-exempt debt, are reconciled to levels reflected in rates. Higher interest rates have resulted in increased interest expense on commercial paper, variable-rate debt and long-term debt issuances.
Under CECONY’s electric, gas and steam rate plans, variations in actual variable rate tax-exempt debt interest expense, including costs associated with the refinancing of the variable rate tax-exempt debt, are reconciled to levels reflected in rates. Higher interest rates have resulted in increased interest expense on commercial paper, variable-rate debt and long-term debt issuances.
Clean Energy Goals The success of the Companies’ efforts to meet federal, state and city clean energy policy goals and the impact of energy consumers' efforts to meet such goals on CECONY’s electric, gas and steam businesses and O&R’s electric and gas businesses may impact the Companies’ future financial condition.
Clean Energy Goals The success of the Companies’ efforts to meet clean energy policy goals and the impact of energy consumers' efforts to meet such goals on CECONY’s electric, gas and steam businesses and O&R’s electric and gas businesses may impact the Companies’ future financial condition.
See Note X to the financial statements in Item 8. (b) Represents the consolidated results of operations of Con Edison and its businesses. CECONY Current assets at December 31, 2024 were $317 million higher than at December 31, 2023.
See Note X to the financial statements in Item 8. (b) Represents the consolidated results of operations of Con Edison and its businesses. CECONY Current assets at December 31, 2025 were $135 million higher than at December 31, 2024.
The following table summarizes key components of CECONY's cash flows from (used in) financing activities for the years ended December 21, 2024 and December 31, 2023.
The following table summarizes key components of CECONY's cash flows from (used in) financing activities for the years ended December 31, 2025 and December 31, 2024.
Once the threshold is met, O&R will defer the variance between actual uncollectible expense and late payment charge, and the level set forth in rates that is above the threshold. Recovery/refunds will be made via surcharge/sur-credit. Surcharge recovery is subject to an annual cap that produces no more than a 0.5 percent total customer bill impact per commodity.
Once the threshold is met, O&R will defer the variance between actual uncollectible expenses and late payment charges, and the level set forth in rates that is above the threshold. Recovery/refunds will be made via surcharge/surcredit. Surcharge recovery is subject to an annual cap that produces no more than a 0.5 percent total customer bill impact per commodity.
Effective November 1, 2023, revenues from CECONY’s steam sales are also subject to a weather normalization clause, as a result of which, delivery revenues reflect normal weather conditions during the heating season. In general, the Utilities recover on a current basis the fuel, gas purchased for resale and purchased power costs they incur in supplying energy to their full-service customers.
The Utilities' gas and CECONY’s steam sales are subject to a weather normalization clause, as a result of which, delivery revenues reflect normal weather conditions during the heating season. In general, the Utilities recover on a current basis the fuel, gas purchased for resale and purchased power costs they incur in supplying energy to their full-service customers.
New York also passed a law establishing a permanent rate of 30 percent for the metropolitan transportation business tax surcharge.
New York also p assed a law establishing a permanent rate of 30 percent for the metropolitan transportation business tax surcharge.
See "Liquidity and Capital Resources - Cash Flows From Financing Activities" above and Note C to the financial statements in Item 8. Equity at December 31, 2024 was $825 million higher than at December 31, 2023.
See "Liquidity and Capital Resources - Cash Flows From Financing Activities" above and Note C to the financial statements in Item 8. Equity at December 31, 2025 was $2,066 million higher than at December 31, 2024.
Accounting for Contingencies 78 CON EDISON ANNUAL REPORT 2024 The accounting rules for contingencies apply to an existing condition, situation or set of circumstances involving uncertainty as to possible loss that will ultimately be resolved when one or more future events occur or fail to occur.
Accounting for Contingencies The accounting rules for contingencies apply to an existing condition, situation or set of circumstances involving uncertainty as to possible loss that will ultimately be resolved when one or more future events occur or fail to occur.
The Companies accrued a CAMT liability of $139 million, $111 million of which is for CECONY, before the application of general business credits with an offsetting deferred tax asset representing the minimum tax credit carryforward, for the year ended December 31, 2024.
For the year ended December 31, 2025, the Companies accrued a CAMT liability of $88 million ($109 million of which is for CECONY) before the application of general business credits, with an offsetting deferred tax asset representing the minimum tax credit carryforward.
Con Edison’s cash flows from financing activities in 2024 and 2023 also reflect the proceeds, and reduction in cash used for reinvested dividends, resulting from the issuance of common shares under the company’s dividend reinvestment, stock purchase and long-term incentive plans of $109 million and $87 million, respectively.
Con Edison’s cash flows from financing activities in 2025 and 2024 also reflect the proceeds, and reduction in cash used for reinvested dividends, resulting from the issuance of common shares under the company’s dividend reinvestment, stock purchase and long term incentive plans of $112 million and $109 million, respe ctively.
The commercial paper amounts outstanding at December 31, 2024 and 2023 and the average daily balances for 2024 and 2023 for Con Edison and CECONY were as follows: 2024 2023 (Millions of Dollars, except Weighted Average Yield) Outstanding at December 31 Daily average Outstanding at December 31 Daily average Con Edison $2,170 $1,842 $2,288 $1,446 CECONY $1,694 $1,393 $1,903 $1,377 Weighted average yield 4.7 % 5.4 % 5.6 % 5.3 % Common stock issuances and external borrowings are sources of liquidity that could be affected by changes in credit ratings, financial performance and capital market conditions.
The commercial paper amounts outstanding at December 31, 2025 and 2024 and the average daily balances for 2025 and 2024 for Con Edison and CECONY were as follows: 2025 2024 (Millions of Dollars, except Weighted Average Yield) Outstanding at December 31 Daily average Outstanding at December 31 Daily average Con Edison $1,575 $804 $2,170 $1,842 CECONY $1,240 $430 $1,694 $1,393 Weighted average yield 3.9 % 4.5 % 4.7 % 5.4 % Common stock issuances and external borrowings are sources of liquidity that could be affected by changes in credit ratings, financial performance and capital market conditions.
As of December 31, 2023, Con Edison estimated that a 10 percent decline in market prices would result in a decline in fair value of $149 million for the derivative instruments used by the Utilities to hedge purchases of electricity and gas, of which $138 million is for CECONY and $11 million is for O&R.
As of December 31, 2024, Con Edison estimated that a 10 percent decline in market prices would result in a decline in fair value of $150 million for the derivative instruments used by the Utilities to hedge purchases of electricity and gas, of which $137 million is for CECONY and $13 million is for O&R.
Material Contingencies For information concerning potential liabilities arising from the Companies’ material contingencies, see “Critical Accounting Estimates – Accounting for Contingencies,” above, and Notes B, G and H to the financial statements in Item 8. CON EDISON ANNUAL REPORT 2024 81
Material Contingencies For information concerning potential liabilities arising from the Companies’ material contingencies, see “Critical Accounting Estimates – Accounting for Contingencies,” above, and Notes B, G and H to the financial statements in Item 8.
Con Edison’s and CECONY’s current estimates for 2025 are decreases, compared with 2024, in their pension and other postretirement benefits costs of $254 million and $236 million, respectively, largely driven by increases in the discount rates used to determine plan liabilities. See Notes E and F to the financial statements in Item 8.
Con Edison’s and CECONY’s current estimates for 2026 are decreases, compared with 2025, in their pension and other postretirement benefits credits of $256 million and $243 million, respectively, largely driven by decreases in the discount rates used to determine plan liabilities. See Notes E and F to the financial statements in Item 8.
Con Edison Transmission is considering strategic alternatives with respect to its investment in MVP and both Con Edison Transmission and CECONY are considering strategic alternatives with respect to their investments in Honeoye. See “Con Edison Transmission” in Item 1.
Con Edison Transmission and CECONY are considering strategic alternatives with respect to their investments in Honeoye. See “Con Edison Transmission” in Item 1.
The change in long-term debt primarily reflects the 2024 issuance of debentures ( $125 million) . See "Liquidity and Capital Resources - Cash Flows From Financing Activities" above and Note C to the financial statements in Item 8. Equity a t December 31, 2024 was $80 million higher than at December 31, 2023.
Long-term debt at December 31, 2025 was $249 million higher than at December 31, 2024. The change in long-term debt primarily reflects the 2025 issuance of debentures ( $250 million) . See "Liquidity and Capital Resources - Cash Flows From Financing Activities" above and Note C to the financial statements in Item 8.
Net Interest Expense Net interest expense increased $9 million in 2024 compared with 2023 pri marily due to higher interest expense for long-term debt due to higher debt balances ($5 million).
Net Interest Expense Net interest expense inc reased $5 million in 2025 compared with 2024 pri marily due to higher interest expense for long-term debt due to higher debt balances ($9 million).
Impact of the sale of the Clean Energy Businesses on the changes in state unitary tax apportionments (net of federal taxes) for the year ended December 31, 2024 is $(3 million) or $(0.01) per share.
Impact of the sale of the Clean Energy Businesses on the changes in state unitary tax apportionments (net of federal taxes) for the year ended December 31, 2024 is $(3 million) or $(0.01) per share. See Note X to the financial statements in Item 8.
(d) Other includes the parent company, Con Edison’s tax equity investments, consolidation adjustments and Broken Bow II, the deferred project held for sale at December 31, 2024, the sale and transfer of which was completed in January 2025. See Note X to the financial statements in Item 8.
(c) Other includes the parent company, Con Edison’s tax equity interests, consolidation adjustments and Broken Bow II, the deferred project that was classified as held for sale at December 31, 2024, with the sale and transfer completed in January 2025. See Note X to the financial statements in Item 8.
(b) Other steam operating revenues generally reflect changes in regulatory assets and liabilities in accordance with CECONY’s rate plan. (c) After adjusting for variations, primarily weather prior to November 1, 2023, and billing days, steam sales and deliveries in the company’s service ar ea decreased 3.1 perc ent in 2024 compared with 2023.
(b) Other steam operating revenues generally reflect changes in regulatory assets and liabilities in accordance with CECONY’s rate plan. (c) After adjusting for variations, primarily weather and billing days, steam sales and deliveries in the company’s service ar ea decreased 3.4 percent in 2025 compared with 2024.
(b) Including the deferral of under-collected property taxes in 2024 and 2023 of $83 million and $50 million, respectively.
(b) Including the deferral of under-collected property taxes in 2025 and 2024 of $88 million and $83 million, respectively.
Net cash flows from operating activities in 2024 for CECONY were $1,073 million higher than in 2023.
Net cash flows from operating activities in 2025 for CECONY were $1,171 million higher than in 2024 .
(d) After adjusting for variations, primarily weather and billing days, electric delivery volumes in CECONY’s service area increased 1.3 percent in 2024 compared with 2023.
(d) After adjusting for variations, primarily weather and billing days, electric delivery volumes in CECONY’s service area increased 2.5 percent in 2025 compared with 2024 .
However, CECONY and O&R made discretionary contributions to the pension plan in 2024 of $17 million and $3 million, respectively. In 2025, O&R expects to make contributions to the pension plan of $3 million. See “Expected Contributions” in Notes E and F to the financial statements in Item 8.
However, CECONY and O&R made discretionary contributions to the pension plan in 2025 of $53 million and $3 million, respectively. In 2026, CECONY and O&R expect to make contributions to the pension plan of $4 million each. See “Expected Contributions” in Notes E and F to the financial statements in Item 8.
CECONY’s principal business segments are its regulated electric, gas and steam utility activities. A discussion of the results of operations by principal business segment for the years ended December 31, 2024 and 2023 follows.
Con Edison’s principal business segments are CECONY’s regulated utility activities, O&R’s regulated utility activities and Con Edison Transmission. CECONY’s principal business segments are its regulated electric, gas and steam utility activities. A discussion of the results of operations by principal business segment for the years ended December 31, 2025 and 2024 follows.
In general, the Utilities suspended service disconnections during the COVID-19 pandemic and have since resumed such activities in accordance with applicable law. At December 31, 2024, CECONY’s and O&R’s customer accounts receivables balances of $2,947 million and $113 million, respectively, included aged accounts receivables (balances outstanding in excess of 60 days) of $1,652 million and $32 million, respectively.
In general, the Utilities suspended service disconnections during the COVID-19 pandemic and have since resumed such activities in accordance with applicable law. At December 31, 2025, CECONY’s and O&R’s customer accounts receivables balances of $2,970 million and $120 million, respectively, included aged accounts receivables (balances outstanding in excess of 60 days) of $1,427 million and $27 million, respectiv ely.
See "Federal Regulation" in Item 1. Con Edison Transmission is considering strategic alternatives with respect to its investment in MVP and both Con Edison Transmission and CECONY are considering strategic alternatives with respect to their investments in Honeoye. See "Con Edison Transmission" in Item 1.
Both Con Edison Transmission and CECONY are considering strategic alternatives with respect to their investments in Honeoye. See "Con Edison Transmission" in Item 1.
Other includes the parent company, Con Edison's tax equity investments, consolidation adjustments and Broken Bow II, the deferred project held for sale at December 31, 2024, the sale and transfer of which was completed in January 2025.
(b) Other includes the parent company, Con Edison’s tax equity interests, consolidation adjustments and Broken Bow II, the deferred project that was classified as held for sale at December 31, 2024, with the sale and transfer completed in January 2025.
(d) Earnings per share on a diluted basis were $5.24 a share and $7.21 a share in 2024 and 2023 , respectively. See "Earnings Per Common Share" in Note A to the financial statements in Item 8.
(c) Earnings per share on a diluted basis were $5.64 a share and $5.24 a share in 2025 and 2024, respectively. See "Earnings Per Common Share" in Note A to the financial statements in Item 8.
Con Edison and the Utilities have a $2,500 million revolving credit agreement (the Credit Agreement) in place under which banks are committed to provide loans on a revolving credit basis until March 2029, unless extended for an additional one-year term, subject to certain conditions.
See "Interest Rate Risk," below, "Aged Accounts Receivable Balances," above and "Capital Resources," below. Con Edison and the Utilities have a $2,500 million revolving credit agreement (the Credit Agreement) in place under which banks are committed to provide loans on a revolving credit basis until March 2029, unless extended for an additional one-year term, subject to certain conditions.
Am ounts in excess of the surcharge caps will be d eferred as a regulatory asset for recovery in CECONY’s next base rate cases.
Amounts in excess of the surcharge caps will be deferred as a regulatory asset for recovery in CECONY’s next base rate cases.
Commodity Price Risk Con Edison’s commodity price risk primarily relates to the purchase and sale of electricity, gas and related derivative instruments. The Utilities apply risk management strategies to mitigate their related exposures.
Commodity Price Risk Con Edison’s commodity price risk primarily relates to the purchase and sale of electricity, gas and related derivative instruments. The Utilities apply risk management strategies to mitigate their related exposures. See Note Q to the financial statements in Item 8.
See Note X to the financial statements in Item 8. (c) Represents the consolidated results of operations of Con Edison and its businesses.
See Note X to the financial statements in Item 8. (b) Represents the consolidated results of operations of Con Edison and its businesses. (c) See "Reconciliation of Cash, Temporary Cash Investments and Restricted Cash" in Note A to the financial statements in Item 8.
See "Competition" and "Environmental Matters – Clean Energy Future" and “Environmental Matters – Climate Change” in Item 1. Pursuant to their rate plans, the Utilities have recovered from customers a portion of the tax liability they will pay in the future as a result of temporary differences between the book and tax basis of assets and liabilities.
Pursuant to their rate plans, the Utilities have recovered from customers a portion of the tax liability they will pay in the future as a result of temporary differences between the book and tax basis of assets and liabilities.
(b) After adjusting for variations, primarily billing days, firm gas sales and transportation volumes in CECONY’s service area decreased 4.0 percent in 2024 compared with 2023.
(b) After adjusting for variations, primarily billing days, firm gas sales and transportation volumes in CECONY’s service area increased 6.5 percent in 2025 compared with 2024 .
The principal components of taxes, other than income taxes, were: For the Years Ended December 31, (Millions of Dollars) 2024 2023 Variation Property taxes $73 $71 $2 State and local taxes related to revenue receipts 13 11 2 Payroll taxes 9 9 — Total $95 (a) $91 (a) $4 (a) Including sales tax on customers’ bills, total taxes other than income taxes in 2024 and 2023 were $127 million a nd $122 million, respectively.
The principal components of taxes, other than income taxes, were: For the Years Ended December 31, (Millions of Dollars) 2025 2024 Variation Property taxes $72 $73 $(1) State and local taxes related to revenue receipts 14 13 1 Payroll taxes 10 9 1 Total $96 (a) $95 (a) $1 (a) Including sales tax on customers’ bills, total taxes other than income taxes in 2025 and 2024 wer e $134 million a nd $127 million, respectively.
Other Income Other income decreased $17 million in 2024 compared with 2023 primarily du e to lower credits associated with components of pension and other postretirement benefits other than service cost ($17 million).
Other Income Other income increased $14 million in 2025 compared with 2024 primarily du e to higher credits associated with components of pension and other postretirement benefits other than service cost ($14 million).
The Utilities recover costs for asbestos lawsuits, workers’ compensation and environmental remediation pursuant to their current rate plans. Generally, changes during the terms of the rate plans to the amounts accrued for these contingencies would not impact earnings. Accounting for Derivative Instruments The Companies apply the accounting rules for derivatives and hedging to their derivative financial instruments.
Generally, changes during the terms of the rate plans to the amounts accrued for these contingencies would not impact earnings. Accounting for Derivative Instruments The Companies apply the accounting rules for derivatives and hedging to their derivative financial instruments.
(c) Other electric operating revenues generally reflect changes in regulatory assets and liabilities in accordance with O&R’s electric rate plan. (d) After adjusting for weather and other variations, electric delivery volumes in O&R’s service area increas ed 2.7 percen t in 2024 compared with 2023.
(c) Other electric operating revenues generally reflect changes in regulatory assets and liabilities in accordance with O&R’s electric rate plan. (d) After adjusting for weather and other variations, electric delivery volumes in O&R’s service area incre ased 2.2 percent in 2025 c ompared with 2024.
The following table illustrates the effect on 2025 pension and other postretirement costs of changing the critical actuarial assumptions, while holding all other actuarial assumptions constant: CON EDISON ANNUAL REPORT 2024 77 Actuarial Assumption Change in Assumption Pension Other Postretirement Benefits Total (Millions of Dollars) Increase in accounting cost: Discount rate Con Edison (0.25) % $34 $2 $36 CECONY (0.25) % $32 $1 $33 Expected return on plan assets Con Edison (0.25) % $41 $3 $44 CECONY (0.25) % $40 $2 $42 Future compensation increases Con Edison 0.50 % $27 $— $27 CECONY 0.50 % $27 $— $27 Health care trend rate Con Edison 1.00 % $— $13 $13 CECONY 1.00 % $— $11 $11 Increase in projected benefit obligation: Discount rate Con Edison (0.25) % $356 $22 $378 CECONY (0.25) % $339 $18 $357 Future compensation increases Con Edison 0.50 % $128 $— $128 CECONY 0.50 % $125 $— $125 Health care trend rate Con Edison 1.00 % $— $72 $72 CECONY 1.00 % $— $62 $62 A 5 percentage point variation in the actual annual return in 2025, as compared with the expected annual asset return of 6.75 percent, would change pension and other postretirement benefit costs for Con Edison and CECONY by approximately $26 million and $25 million, respectively, in 2026.
The following table illustrates the effect on 2026 pension and other postretirement costs of changing the critical actuarial assumptions, while holding all other actuarial assumptions constant: CON EDISON ANNUAL REPORT 2025 75 Actuarial Assumption Change in Assumption Pension Other Postretirement Benefits Total (Millions of Dollars) Increase in accounting cost: Discount rate Con Edison (0.25) % $35 $2 $37 CECONY (0.25) % $34 $1 $35 Expected return on plan assets Con Edison (0.25) % $41 $3 $44 CECONY (0.25) % $39 $2 $41 Future compensation increases Con Edison 0.50 % $28 $— $28 CECONY 0.50 % $28 $— $28 Health care trend rate Con Edison 1.00 % $— $12 $12 CECONY 1.00 % $— $10 $10 Increase in projected benefit obligation: Discount rate Con Edison (0.25) % $373 $22 $395 CECONY (0.25) % $357 $19 $376 Future compensation increases Con Edison 0.50 % $136 $— $136 CECONY 0.50 % $133 $— $133 Health care trend rate Con Edison 1.00 % $— $68 $68 CECONY 1.00 % $— $58 $58 A 5 percentage point variation in the actual annual return in 2026, as compared with the expected annual asset return for pension and other postretirement benefits of 6.45 percent and 6.25 percent, respectively, would change pension and other postretirement benefit costs for Con Edison and CECONY by approximately $27 million and $26 million, respectively, in 2027.
O&R's collection strategy aligns with that of CECONY's in many respects. Con Edison Transmission Con Edison Transmission, through its New York Transco partnership and jointly with the NYPA, is developing the Propel NY Energy transmission project, a 90-mile electric transmission project that is expected to increase high voltage transmission connections between Long Island and the rest of New York State.
Con Edison Transmission 54 CON EDISON ANNUAL REPORT 2025 Con Edison Transmission, through its New York Transco partnership and jointly with the New York Power Authority (NYPA), is developing the Propel NY Energy transmission project, a 90-mile electric transmission project that is expected to increase high voltage transmission connections between Long Island and the rest of New York State.
The change in equity primarily reflects net income for the year ended December 31, 2024 ($1,748 million), capital contributions from Con Edison ($130 million) in 2024, an increase in other comprehensive income ($8 million) and a change in stock awards ($12 million), offset in part by common stock dividends to Con Edison ($1,073 million) in 2024.
The change in equity primarily reflects net income for the year ended December 31, 2025 ($1,906 million), capital contributions from Con Edison ($1,300 million) in 2025 and a change in stock awards ($7 million), offset in part by common stock dividends to Con Edison ($1,134 million) in 2025 and an other comprehensive loss ($13 million).
CECONY’s rate plans include reconciliation of late payment charges (from January 1, 2023 through December 31, 2025 for electric and gas and from January 1, 2020 through October 31, 2026 for steam) and write-offs of customer accounts receivable balances (from January 1, 2020 through December 31, 2025 for electric and gas and from CON EDISON ANNUAL REPORT 2024 55 January 1, 2020 through October 31, 2026 for steam) to amounts reflected in rates, with recovery/refund from or to customers via surcharge/sur-credit.
CECONY’s rate plans for the three-year period January 2023 through December 2025 included reconciliation of late payment charges (from January 1, 2023 through December 31, 2025 for electric and gas and from January 1, 2020 through October 31, 2026 for steam) and write-offs of customer accou nts receivable balances (from January 1, 2020 through December 31, 2025 for electric and gas and from January 1, 2020 through October 31, 2026 for steam) to amounts reflected in rates, with recovery/refund from or to customers via surcharge/surcredit.
In November 2024 and January 2025, CECONY borrowed $500 million and $200 million, respectively, at a variable rate under a 364-Day Senior Unsecured Delayed Draw Term Loan Credit Agreement entered into by the company in November 2024 (the CECONY Term Loan Credit Agreement). The term loans mature in November 2025.
Also in November 2025, CECONY borrowed $500 million at a variable rate under a 364-Day Senior Unsecured Term Loan Credit Agreement entered into by the company in November 2025 (the CECONY Term Loan Credit Agreement). The term loan matures in November 2026.
Other Income Other income decreased $154 million in 2024 compared with 2023 primarily due to lower credits associated with components of pension and other postretirement benefits other than service cost ($176 million), offset in part by an increase in AFUDC ($11 million) and an increase in the revenue decoupling mechanism interest accrual ($6 million).
Other Income Other income in creased $219 million in 2025 compared with 2024 primarily due to higher credits associated with components of pension and other postretirement benefits other than service cost ($204 million) and an increase in AFUDC ($31 million), offset in part by a decrease in the revenue decoupling mechanism interest accrual ($7 million).
For the Year Ended December 31, (Millions of Dollars) 2024 2023 Variance INVESTING ACTIVITIES Utility capital expenditures $(4,456) $(4,059) $(397) Cost of removal less salvage (467) (380) (87) NET CASH FLOWS USED IN INVESTING ACTIVITIES $(4,923) $(4,439) $(484) Net cash flows used in investing activities for CECONY were $484 million higher in 2024 than in 2023.
For the Year Ended December 31, (Millions of Dollars) 2025 2024 Variance INVESTING ACTIVITIES Utility capital expenditures $(4,331) $(4,456) $125 Cost of removal less salvage (469) (467) (2) NET CASH FLOWS USED IN INVESTING ACTIVITIES $(4,800) $(4,923) $123 Net cash flows used in investing activities for CECONY were $123 million lower in 2025 than in 2024 .
The principal components of, and variations in, taxes other than income taxes were: For the Years Ended December 31, (Millions of Dollars) 2024 2023 Variation Property taxes $2,738 $2,503 $235 State and local taxes related to revenue receipts 429 409 20 Payroll taxes 83 77 6 Other taxes (b) (77) (43) (34) Total $3,173 (a) $2,946 (a) $227 (a) Including sales tax on customers’ bills, total taxes other than income taxes in 2024 and 2023 were $3,915 million and $3,652 million, respectively.
The principal components of, and variations in, taxes other than income taxes were: For the Years Ended December 31, (Millions of Dollars) 2025 2024 Variation Property taxes $3,004 $2,738 $266 State and local taxes related to revenue receipts 445 429 16 Payroll taxes 91 83 8 Other taxes (b) 115 (77) 192 Total $3,655 (a) $3,173 (a) $482 (a) Including sales tax on customers’ bills, total taxes other than income taxes in 2025 and 2024 were $4,488 million and $3,915 million, respectively.
CON EDISON ANNUAL REPORT 2024 59 The Companies’ other operations and maintenance expenses for the years ended December 31, 2024 and 2023 were as follows: (Millions of Dollars) 2024 2023 CECONY Operations $1,918 $1,845 Pensions and other postretirement benefits 138 338 Health care and other benefits 192 172 Regulatory fees and assessments (a) 461 380 Other (b) 644 441 Total CECONY 3,353 3,176 O&R 387 375 Clean Energy Businesses (c) — 48 Con Edison Transmission 11 11 Other (d) — (4) Total other operations and maintenance expenses $3,751 $3,606 (a) Includes Demand Side Management, System Benefit Charges and Public Service Law 18A assessments that are collected in revenues.
See Note W to the financial statements in Item 8. 58 CON EDISON ANNUAL REPORT 2025 The Companies’ other operations and maintenance expenses for the years ended December 31, 2025 and 2024 were as follows: (Millions of Dollars) 2025 2024 CECONY Operations $2,002 $1,918 Pensions and other postretirement benefits 28 138 Health care and other benefits 212 192 Regulatory fees and assessments (a) 467 461 Other (b) 685 644 Total CECONY 3,394 3,353 O&R 380 387 Con Edison Transmission 29 11 Other (c) 1 — Total other operations and maintenance expenses $3,804 $3,751 (a) Includes Demand Side Management, System Benefit Charges and Public Service Law 18A assessments that are collected in revenues.
Depreciation and amortization expenses increased $6 million in 2024 compared with 2023 primarily due to higher electric utility plant balances. Taxes, other than income taxes increased $3 million in 2024 compared with 2023 primarily due to higher property taxes ($2 million) and higher state and local revenue taxes ($1 million).
Depreciation and amortization expenses increased $6 million in 2025 compared with 2024 primarily due to higher steam utility plant balances. Taxes, other than income taxes increased $52 million in 2025 compared with 2024 primarily due to a lower deferral of under-collected property taxes ($50 million) and higher state and local revenue taxes ($2 million).
The change in net plant primarily reflects increases in electric ($1,939 million), gas ($708 million) and steam ($102 million) plant balances and an increase in construction work in progress ($744 million), offset in part by an increase in accumulated depreciation ($1,148 million) and a decrease in general ($10 million) plant balances.
The change in net plant primarily reflects an increase in electric ($3,106 million), gas ($917 million) and steam ($73 million) plant balances and an increase in construction work in progress ($79 million), offset in part by an increase in accumulated depreciation ($1,002 million) and a decrease in general ($294 million) plant balances.
Gas O&R’s results of gas operations for the year ended December 31, 2024 compared with the year ended December 31, 2023 were as follows: For the Years Ended December 31, (Millions of Dollars) 2024 2023 Variation Operating revenues $273 $297 $(24) Gas purchased for resale 75 111 (36) Other operations and maintenance 81 83 (2) Depreciation and amortization 35 30 5 Taxes, other than income taxes 33 32 1 Gas operating income $49 $41 $8 O&R’s gas sales and deliveries, excluding off-system sales, in 2024 compared with 2023 were: 66 CON EDISON ANNUAL REPORT 2024 Thousands of Dt Delivered Revenues in Millions (a) For the Years Ended For the Years Ended Description December 31, 2024 December 31, 2023 Variation Percent Variation December 31, 2024 December 31, 2023 Variation Percent Variation Residential 10,749 11,428 (679) (5.9) % $166 $193 $(27) (14.0) % General 1,767 2,929 (1,162) (39.7) 21 37 (16) (43.2) Firm transportation 4,623 5,055 (432) (8.5) 34 38 (4) (10.5) Total firm sales and transportation 17,139 19,412 (2,273) (11.7) (b) 221 268 (47) (17.5) Interruptible sales 3,712 3,301 411 12.5 % 7 6 1 16.7 % Generation plants 10 4 6 Large — — — — Other 710 672 38 5.7 1 1 — — Other gas revenues — — — — 44 22 22 Large Total 21,571 23,389 (1,818) (7.8) % $273 $297 $(24) (8.1) % (a) Revenues from New York gas sales are subject to a weather normalization clause and a revenue decoupling mechanism, as a result of which, delivery revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved.
Gas O&R’s results of gas operations for the year ended December 31, 2025 compared with the year ended December 31, 2024 were as follows: For the Years Ended December 31, (Millions of Dollars) 2025 2024 Variation Operating revenues $331 $273 $58 Gas purchased for resale 129 75 54 Other operations and maintenance 83 81 2 Depreciation and amortization 40 35 5 Taxes, other than income taxes 34 33 1 Gas operating income $45 $49 $(4) O&R’s gas sales and deliveries, excluding off-system sales, in 2025 compared with 2024 were: CON EDISON ANNUAL REPORT 2025 65 Thousands of Dt Delivered Revenues in Millions (a) For the Years Ended For the Years Ended Description December 31, 2025 December 31, 2024 Variation Percent Variation December 31, 2025 December 31, 2024 Variation Percent Variation Residential 13,578 10,749 2,829 26.3 % $237 $166 $71 42.8 % General 2,980 1,767 1,213 68.6 40 21 19 90.5 Firm transportation 5,300 4,623 677 14.6 41 34 7 20.6 Total firm sales and transportation 21,858 17,139 4,719 27.5 (b) 318 221 97 43.9 Interruptible sales 3,630 3,712 (82) (2.2) 7 7 — — Generation plants 2 10 (8) (80.0) — — — — Other 744 710 34 4.8 1 1 — — Other gas revenues — — — — 5 44 (39) (88.6) Total 26,234 21,571 4,663 21.6 % $331 $273 $58 21.2 % (a) Revenues from New York gas sales are subject to a weather normalization clause and a revenue decoupling mechanism, as a result of which, delivery revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved.
See Note P to the financial statements in Item 8. 80 CON EDISON ANNUAL REPORT 2024 Con Edison estimates that, as of December 31, 2024, a 10 percent decline in market prices would result in a decline in fair value of $150 million for the derivative instruments used by the Utilities to hedge purchases of electricity and gas, of which $137 million is for CECONY and $13 million is for O&R.
Con Edison estimates that, as of December 31, 2025, a 10 percent decline in market prices would result in a decline in fair value of $191 million for the derivative instruments used by the Utilities to hedge purchases of electricity and gas, of which $175 million i s for CECONY and $16 million is for O&R.
CON EDISON ANNUAL REPORT 2024 79 The Companies recorded asset retirement obligations associated with the removal of asbestos and asbestos-containing material in their buildings (other than the structures enclosing generating stations and substations), electric equipment and steam and gas distribution systems.
The Companies recorded asset retirement obligations associated with the removal of asbestos and asbestos-containing material in their buildings (other than the structures enclosing generating stations and substations), electric equipment and steam and gas distribution systems. The Companies also recorded asset retirement obligations relating to gas and oil pipelines abandoned in place and municipal infrastructure support.
A 1 percent increase in the assumed inflation rate used to value the ARO liability as of December 31, 2024 would increase the liability by $27 million for Con Edison and CECONY.
See Note T to the financial statements in Item 8. A 1 percent increase in the assumed inflation rate used to value the ARO liability as of December 31, 2025 would increase the liability by $29 million f or Con Edison and CECONY.
This timing is reflected within changes to accounts receivable – customers, recoverable and refundable energy costs within other regulatory assets and liabilities and accounts payable balances.
The change in net cash flows also reflects the timing of payments for and recovery of energy costs. This timing is reflected within changes to accounts receivable – customers, recoverable and refundable energy costs within other regulatory assets and liabilities and accounts payable balances.
O&R For the Year Ended December 31, 2024 For the Year Ended December 31, 2023 (Millions of Dollars) Electric Gas 2024 Total Electric Gas 2023 Total 2024-2023 Variation Operating revenues $852 $273 $1,125 $759 $297 $1,056 $69 Purchased power 290 — 290 247 — 247 43 Gas purchased for resale — 75 75 — 111 111 (36) Other operations and maintenance 306 81 387 292 83 375 12 Depreciation and amortization 82 35 117 76 30 106 11 Taxes, other than income taxes 62 33 95 59 32 91 4 Operating income $112 $49 $161 $85 $41 $126 $35 Electric O&R’s results of electric operations for the year ended December 31, 2024 compared with the year ended December 31, 2023 were as follows: For the Years Ended December 31, (Millions of Dollars) 2024 2023 Variation Operating revenues $852 $759 $93 Purchased power 290 247 43 Other operations and maintenance 306 292 14 Depreciation and amortization 82 76 6 Taxes, other than income taxes 62 59 3 Electric operating income $112 $85 $27 O&R’s electric sales and deliveries in 2024 compared with 2023 were: CON EDISON ANNUAL REPORT 2024 65 Millions of kWh Delivered Revenues in Millions (a) For the Years Ended For the Years Ended Description December 31, 2024 December 31, 2023 Variation Percent Variation December 31, 2024 December 31, 2023 Variation Percent Variation Residential/Religious (b) 2,133 1,917 216 11.3 % $474 $419 $55 13.1 % Commercial/Industrial 965 958 7 0.7 167 147 20 13.6 Retail choice customers 2,522 2,397 125 5.2 198 172 26 15.1 Public authorities 114 113 1 0.9 12 12 — — Other operating revenues (c) — — — — 1 9 (8) (88.9) Total 5,734 5,385 349 6.5 % (d) $852 $759 $93 12.3 % (a) O&R’s New York electric delivery revenues are subject to a revenue decoupling mechanism, as a result of which delivery revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved.
O&R For the Year Ended December 31, 2025 For the Year Ended December 31, 2024 (Millions of Dollars) Electric Gas 2025 Total Electric Gas 2024 Total 2025-2024 Variation Operating revenues $934 $331 $1,265 $852 $273 $1,125 $140 Purchased power 379 — 379 290 — 290 89 Gas purchased for resale — 129 129 — 75 75 54 Other operations and maintenance 297 83 380 306 81 387 (7) Depreciation and amortization 87 40 127 82 35 117 10 Taxes, other than income taxes 62 34 96 62 33 95 1 Operating income $109 $45 $154 $112 $49 $161 $(7) Electric O&R’s results of electric operations for the year ended December 31, 2025 compared with the year ended December 31, 2024 were as follows: For the Years Ended December 31, (Millions of Dollars) 2025 2024 Variation Operating revenues $934 $852 $82 Purchased power 379 290 89 Other operations and maintenance 297 306 (9) Depreciation and amortization 87 82 5 Taxes, other than income taxes 62 62 — Electric operating income $109 $112 $(3) 64 CON EDISON ANNUAL REPORT 2025 O&R’s electric sales and deliveries in 2025 compared with 2024 were: Millions of kWh Delivered Revenues in Millions (a) For the Years Ended For the Years Ended Description December 31, 2025 December 31, 2024 Variation Percent Variation December 31, 2025 December 31, 2024 Variation Percent Variation Residential/Religious (b) 2,307 2,133 174 8.2 % $584 $474 $110 23.2 % Commercial/Industrial 1,118 965 153 15.9 210 167 43 25.7 Retail choice customers 2,234 2,522 (288) (11.4) 159 198 (39) (19.7) Public authorities 116 114 2 1.8 15 12 3 25.0 Other operating revenues (c) — — — — (34) 1 (35) Large Total 5,775 5,734 41 0.7 % (d) $934 $852 $82 9.6 % (a) O&R’s New York electric delivery revenues are subject to a revenue decoupling mechanism, as a result of which delivery revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved.
In accordance with the accounting rules, the Companies have accrued estimates of losses relating to the contingencies as to which loss is probable and can be reasonably estimated, and no liability has been accrued for contingencies as to which loss is not probable or cannot be reasonably estimated.
In accordance with the accounting rules, the Companies have accrued estimates of losses relating to the contingencies as to which loss is probable and can be reasonably estimated, and no liability has been accrued for contingencies as to which loss is not probable or cannot be reasonably estimated. 76 CON EDISON ANNUAL REPORT 2025 The Utilities recover costs for asbestos lawsuits, workers’ compensation and environmental remediation pursuant to their rate plans.

… 147 more changes not shown on this page.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

1 edited+0 added−0 removed2 unchanged
Biggest changeSee also “The Companies Require Access To Capital Markets To Satisfy Funding Requirements,” in Item 1A. 82 CON EDISON ANNUAL REPORT 2024
Biggest changeSee also “The Companies Require Access To Capital Markets To Satisfy Funding Requirements,” in Item 1A. CON EDISON ANNUAL REPORT 2025 79