Utility holding company Consolidated Edison (Con Edison) is the night light for the city that never sleeps. Con Edison's main subsidiary, Consolidated Edison Company of New York, distributes electricity to 3.3 million residential and business customers in New York City; it also delivers natural gas to about 1.1 million customers. Subsidiary Orange and Rockland Utilities serves more than 400,000 electric and gas customers in three Northeast states. Con Edison's nonutility operations include retail and wholesale energy marketing, independent power production, and infrastructure project development.
The company's utility operations serve customers in New Jersey, New York, and Pennsylvania.
Consolidated Edison Company of New York distributes electricity and natural gas in New York City. It also operates the largest steam distribution system in the US, producing and delivering 20,000 MMlbs of steam annually to about 1,720 customers in Manhattan. Orange and Rockland Utilities serves electric and gas customers in three Northeast states.
Competitive energy businesses include subsidiary Consolidated Edison Solutions, which markets power and gas to retail customers and provides energy procurement and management services, and Consolidated Edison Energy, which markets and trades wholesale energy. Subsidiary Consolidated Edison Development has interests in power generation facilities.
Con Edison's revenues dropped by 5% in 2012 led by Consolidated Edison Company of New York's declining electric operating revenues (which decreased due to weaker purchased power and fuel costs offset by higher revenues from increased electric rates. The unit's gas revenues also decreased as the result of a drop in gas purchased for resale costs offset by higher revenues from increased gas rates. Its steam operating revenues also slumped for similar reasons. Orange and Rockland Utilities' revenues declined in 2012 due to lower purchased power costs, offset in part by higher rates.
Revenues from competitive energy businesses declined due to lower electric retail and wholesale revenues. Both electric wholesale and retail revenues decreased due to lower sales volumes and unit prices.
Con Edison reported $1.1 billion in net income in 2012 (7.4% up on 2011) as the result of a decline in operating expenses.
Weak industrial demand as the result of a lingering recession and lower purchased power and fuel costs have hurt the company's revenues in the past few years.
The company seeks to balance growing its competitive operations (with an emphasis on green energy) with improving its regulated infrastructure assets.
In 2013 Con Edison announced plans to make it easier and less expensive for customers to convert from heating oil to lower cost natural gas in Manhattan and the Bronx. Its gas infrastructure expansion program includes investing a $100 million on new mains, regulators and other upgrades in several neighborhoods.
Promoting green power sources, in 2011 Con Edison held stakes in solar energy projects (in New Jersey and Massachusetts) with a collective capacity of 28 MW. It also has proposed to develop 25 MW of solar energy resources in New York City by 2015. The solar power generated in the New York project would annually offset about 16,000 tons of carbon dioxide.