About CONSOLIDATED EDISON, INC.

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 3.4 million residential and business customers in New York City; it also delivers natural gas to about 1.1 million customers, and steam service in parts of Manhattan. 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.

Geographic Reach

Con Edison's utility operations serve customers in New Jersey, New York, and Pennsylvania.

Operations

Consolidated Edison Company of New York (CECONY, 80% of Con Edison's 2014 revenues) distributes electricity and natural gas in New York City. It also operates the largest steam distribution system in the US, producing and delivering 22,000 MMlbs of steam annually to about 1,700 customers in Manhattan. It owns 62 area distribution substations and various distribution facilities located throughout New York City and Westchester County. In 2015 the company’s distribution system had a transformer capacity of 29,762 MVA, with 36,929 miles of overhead distribution lines and 97,286 miles of underground distribution lines.

Orange and Rockland Utilities (O&R, 6%) serves electric and gas customers in three northeastern 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.

Sales and Marketing

Con Edison's businesses sell to retail customers electricity purchased in wholesale markets and enter into related hedging transactions, provide energy-related products and services to wholesale and retail customers, and develop, own and operate renewable and energy infrastructure projects.

Financial Performance

 In 2015 Con Edison's net sales decreased by $365 million due to lower sales from CECONY gas and electric business partially offset by increased sales from competitive energy businesses.

CECONY's electric operating revenues decreased due primarily to lower purchased power expenses and lower fuel expenses, both driven by a decline in unit costs.

CECONY's gas revenues decreased due primarily to a drop in gas purchased for resale expenses, offset in part by higher revenues from the gas rate plan reflecting primarily higher delivery volumes attributable to oil-to-gas conversions.

Competitive energy businesses revenues increased due to higher electric retail revenues driven by higher sales volume.

In 2015 Con Edison's net income increased by 9% due to decreased purchased power expenses and gas purchased for resale expenses driven by lower unit costs partially offset by decreased sales.

Net cash provided by the operating activities increased by 16% due to a change in income tax receivables.

Strategy

The company seeks to balance growing its competitive operations (with an emphasis on green energy) with improving its regulated infrastructure assets. Moving forward, the company continues to work with its regulators to develop a fair and reasonable rate structure that benefits all customers, supports customer choice, recognizes the value of the grid, and allows for solid returns for Con Edison. In January 2015, Consolidated Edison Company of New York filed a request with the NYSPSC for an electric rate increase of $368 million, effective January 2016.

Con Edison’s sustainability strategy, as it relates to the environment, provides that the company seeks to reduce its environmental footprint by making effective use of natural resources to address the challenges of climate change and its impact on the company’s business. As part of its strategy, the company seeks, among other things, to reduce direct and indirect emissions; enhance the efficiency of its water use; minimize its impact to natural ecosystems; focus on reducing, reusing, and recycling to minimize consumption; and design its work in consideration of climate forecasts.

The company is continually aligning its business moving toward the new energy future. In 2015 it created a new subsidiary, Con Edison Transmission, to focus on new electric and gas transmission, an area of significant potential for growth in future. The new business gives the opportunity to offer a wide range of customers more diverse low-cost energy supplies.

It also sells non-core assets. In 2015 Con Edison initiated a plan to sell the retail electric supply business of its competitive energy businesses. That year O&R entered into an agreement to sell Pike to Corning Natural Gas Holding for $16 million.

In 2014, the company invested $2.3 billion to keep its electric, gas, and steam systems reliable, resilient, and secure. For 2015 it increased capital spending for its regulated utilities by 18%. Part of the additional funding is to help protect its energy systems against storms, and to accelerate gas main replacement efforts.

In 2014 Con Edison formed a wholly-owned subsidiary, Con Edison Transmission, which, in tandem with affiliates of certain other New York transmission owners, formed New York Transco LLC. NY Transco's three projects are scheduled to be placed into service by Summer 2016, include two projects that Consolidated Edison Company of New York is developing and one project that two other New York transmission owners are developing.

That year Con Edison also formed Consolidated Edison Transmission LLC (Con Edison Transmission) to invest in a transmission company. Con Edison Development develops, constructs, owns, and operates grid connected renewable energy infrastructure projects throughout the continental US. At the end of 2014, Con Edison Development had 446 MW of solar and wind projects in operation, and was the 6th largest owner and operator of solar photovoltaic plants in North America.

Mergers and Acquisitions

In 2016, Consolidated Edison, Inc. and Crestwood Equity Partners LP, subsidiaries entered formed a joint venture to own and develop Crestwood's existing natural gas pipeline and storage business located in northern Pennsylvania and southern New York. These premier natural gas pipelines and storage facilities provide a critical link between robust natural gas supply sources and Northeast US demand markets. Subject to customary closing conditions and purchase price adjustments, Crestwood will contribute its existing natural gas pipeline and storage business to a new entity, Stagecoach Gas Services LLC and a subsidiary of Con Edison Transmission, Inc., which is a wholly-owned subsidiary of Con Edison, will purchase a 50% equity interest in Stagecoach Gas Services for approximately $975 million, with an implied market value of almost $2 billion.

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CONSOLIDATED EDISON, INC.

4 Irving Pl
New York, NY 10003-3502
Phone: 1 (212) 460-4600
Fax: 1 (212) 529-7147

Stats

  • Employer Type: Public
  • Stock Symbol: ED
  • Stock Exchange: NYSE
  • Chairman and CEO, ConEd and CECONY: John T. McAvoy
  • SVP and CFO, Con Edison and CECONY: Robert N. Hoglund
  • Chairman and CEO, ConEd and CECONY: John T. McAvoy

Major Office Locations

  • New York, NY

Other Locations

  • Tampa, FL
  • Overland Park, KS
  • Baltimore, MD
  • Cherry Hill, NJ
  • Mahwah, NJ
  • Wyckoff, NJ
  • Astoria, NY
  • Briarcliff Manor, NY
  • Bronx, NY
  • Brooklyn, NY
  • Long Island City, NY
  • Middletown, NY
  • Monroe, NY
  • Port Jervis, NY
  • Rye, NY
  • Staten Island, NY
  • White Plains, NY
  • Reading, PA
  • Houston, TX
  • Falls Church, VA
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