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.
Con Edison'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 more than 23,000 MMlbs of steam annually to about 1,703 customers in Manhattan. It owns 62 area distribution substations and various distribution facilities located throughout New York City and Westchester County. In 2014 the company’s distribution system had a transformer capacity of 29,474 MVA, with 36,934 miles of overhead distribution lines and 98,327 miles of underground distribution lines.
Orange and Rockland Utilities (O&R) 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.
In 2014 Con Edison's net sales increased by 5% due to increased sales from gas, electric, and non-utility businesses.
Electric operating revenues increased by $306 million in 2014 as the result of higher revenues from the electric rate plan ($215 million), higher purchased power ($62 million) and fuel expenses ($6 million).
Gas operating revenues increased by $105 million in 2014 due to an increase in gas purchased for resale expenses ($77 million) and higher revenues from the gas rate plan ($31 million).
Gas purchased for resale increased by $77 million in 2014 as the result of higher unit costs ($67 million) and send out volumes ($10 million).
Steam operating revenues decreased by $55 million due to lower fuel expenses ($41 million) and lower revenues from the steam rate plans ($38 million), offset in part by the weather impact on revenues ($17 million) and higher purchased power costs ($8 million).
For O&R, operating revenues increased $52 million in 2014 due to higher purchased power expenses ($21 million) and higher revenues from the New York electric rate plan ($17 million).
For the Competitive Energy Businesses, operating revenues increased by $148 million in 2014 due to higher wholesale and electric retail revenues ($125 million), and the impact of the Lease In/Lease Out transactions ($27 million). Wholesale revenues increased by $80 million due to higher sales volumes.
Con Edison's net income increased by 3% in 2014 due to higher revenues, a gain on sale of solar electric production projects and decreased other interest. (The gain on sale of solar electric production projects was $45 million, reflecting Con Edison Development’s sale of 50% of its membership interest in California Solar).
In 2014 the company's net cash provided by operating activities increased by 11% .
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.
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.
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.
It also plans to develop 25 MW of solar energy resources in New York City by the end of 2015. The solar power generated in the New York project would annually offset about 16,000 tons of carbon dioxide.