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. 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 22,000 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 2013 the company’s distribution system had a transformer capacity of 29,125 MVA, with 36,782 miles of overhead distribution lines and 97,120 miles of underground distribution lines.
Orange and Rockland Utilities 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.
Weak industrial demand as the result of a lingering recession and lower purchased power and fuel costs have hurt the Con Edison's revenues in the past few years. ln 2013 its revenue increased by 1% due to higher revenues from Consolidated Edison Company of New York's gas revenues as a result of an increase in gas purchased for resale costs and higher rates. Its steam revenues grew thanks to favorable weather conditions 9which spurred demand) and higher rates, offset by lower fuel costs.
Orange and Rockland Utilities electric operating revenues increased in 2013 due to higher purchased power costs and higher rates. Its gas operating revenues also rose due to the increase in gas purchased for resale in 2013, offset in part by lower gas rates.
After experiencing sizable growth over the last few years, in 2013 Con Edison’s net income decreased by 7% due to higher operating cost and interest expenses.
In 2013 the company’s operating cash inflow decreased to $2.55 billion (from $2.59 billion in 2012) due to lower net income and a change in working capital.
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.
It also plans 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.