--- ticker: ED company: Consolidated Edison Inc. filing_type: 10-K year_current: 2025 year_prior: 2024 risks_added: 19 risks_removed: 19 risks_modified: 62 risks_unchanged: 39 source: SEC EDGAR url: https://riskdiff.com/ed/2025-vs-2024/ markdown_url: https://riskdiff.com/ed/2025-vs-2024/index.md generated: 2026-06-01 --- # Consolidated Edison Inc.: 10-K Risk Factor Changes 2025 vs 2024 > Source: U.S. Securities and Exchange Commission (EDGAR) > Generated: 2026-06-01 > All data extracted directly from official filings. No hallucinated content. ## Summary | Status | Count | |--------|-------| | New risks added | 19 | | Risks removed | 19 | | Risks modified | 62 | | Unchanged | 39 | --- ## New in Current Filing: Con Edison (b) (a) 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. (b) Represents the consolidated results of operations of Con Edison and its businesses. (c) On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note W and Note X to the financial statements in Item 8. CON EDISON ANNUAL REPORT 202461 CON EDISON ANNUAL REPORT 202461 CON EDISON ANNUAL REPORT 202461 61 --- ## New in Current Filing: 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). --- ## New in Current Filing: Income Tax Expense Income taxes decreased $44 million in 2024 compared with 2023 primarily due to higher amortization of excess deferred federal income taxes ($31 million) and the absence in 2024 of a remeasurement of state deferred income tax assets and liabilities as a result of the enacted New York State legislation in 2023 ($10 million). O&R For the Year Ended December 31, 2024 For the Year Ended December 31, 2023 (Millions of Dollars)ElectricGas2024 TotalElectricGas2023 Total2024-2023VariationOperating revenues$852$273$1,125$759$297$1,056$69Purchased power290 - 290247 - 24743Gas purchased for resale - 7575 - 111111(36)Other operations and maintenance306813872928337512Depreciation and amortization8235117763010611Taxes, other than income taxes6233955932914Operating 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)20242023VariationOperating revenues$852$759$93Purchased power29024743Other operations and maintenance30629214Depreciation and amortization82766Taxes, other than income taxes62593Electric operating income$112$85$27 O&R's electric sales and deliveries in 2024 compared with 2023 were: CON EDISON ANNUAL REPORT 202465 CON EDISON ANNUAL REPORT 202465 CON EDISON ANNUAL REPORT 202465 65 Millions of kWh Delivered Revenues in Millions (a) For the Years Ended For the Years Ended DescriptionDecember 31, 2024December 31, 2023VariationPercentVariation December 31, 2024December 31, 2023VariationPercentVariationResidential/Religious (b)2,133 1,917 216 11.3 %$474$419$5513.1 %Commercial/Industrial965 958 7 0.7 1671472013.6 Retail choice customers2,522 2,397 125 5.2 1981722615.1 Public authorities114 113 1 0.9 1212 - - Other operating revenues (c) - - - - 19(8)(88.9)Total5,734 5,385 349 6.5 %(d)$852$759$9312.3 % Percent Variation Percent Variation (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. The majority of O&R's electric distribution revenues in New Jersey are subject to a conservation incentive program, as a result of which distribution revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved. O&R's electric transmission revenues in New Jersey are not subject to a conservation incentive program, and as a result, changes in such volumes do impact revenues. (b)"Residential/Religious" generally includes single-family dwellings, individual apartments in multi-family dwellings, religious organizations and certain other not-for-profit organizations. (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 increased 2.7 percent in 2024 compared with 2023. Operating revenues increased $93 million in 2024 compared with 2023 primarily due to higher purchased power expenses ($43 million) and higher revenues from the New York electric rate plan ($39 million), higher revenue related to the Clean Energy Act ($3 million) and a change in incentives earned under the earnings adjustment mechanisms ($1 million). Purchased power expenses increased $43 million in 2024 compared with 2023 due to higher purchased volumes ($35 million) and unit costs ($8 million). Other operations and maintenance expenses increased $14 million in 2024 compared with 2023 primarily due to higher regulatory System Benefit Charges ($6 million), higher regulatory amortizations ($4 million), higher expenses associated with the New Jersey Clean Energy Act ($3 million) and higher tree trimming costs ($2 million). 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). 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)20242023VariationOperating revenues$273$297$(24)Gas purchased for resale75111(36)Other operations and maintenance8183(2)Depreciation and amortization35305Taxes, other than income taxes33321Gas operating income$49$41$8 O&R's gas sales and deliveries, excluding off-system sales, in 2024 compared with 2023 were: 66CON EDISON ANNUAL REPORT 2024 66CON EDISON ANNUAL REPORT 2024 66CON EDISON ANNUAL REPORT 2024 66 Thousands of Dt Delivered Revenues in Millions (a) For the Years Ended For the Years Ended DescriptionDecember 31, 2024December 31, 2023VariationPercentVariationDecember 31, 2024December 31, 2023VariationPercentVariationResidential10,749 11,428 (679)(5.9)%$166$193$(27)(14.0)%General1,767 2,929 (1,162)(39.7)2137(16)(43.2)Firm transportation4,623 5,055 (432)(8.5)3438(4)(10.5)Total firm sales and transportation17,139 19,412 (2,273)(11.7)(b) 221268(47)(17.5)Interruptible sales3,712 3,301 411 12.5 %76116.7 %Generation plants10 4 6 Large - - - - Other710 672 38 5.7 11 - - Other gas revenues - - - - 442222LargeTotal21,571 23,389 (1,818)(7.8)%$273$297$(24)(8.1)% Percent Variation (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. (b)After adjusting for weather and other variations, firm sales and transportation volumes in O&R's service area decreased 1.4 percent in 2024 compared with 2023. Operating revenues decreased $24 million in 2024 compared with 2023 primarily due to lower gas purchased for resale ($36 million), offset in part by higher revenues from the New York gas rate plan ($3 million) and a change in incentives earned under the earnings adjustment mechanisms ($2 million). Gas purchased for resale decreased $36 million in 2024 compared with 2023 due to lower purchased volumes ($18 million) and unit cost ($18 million). Other operations and maintenance expenses decreased $2 million in 2024 compared with 2023 primarily due to lower pension costs. Depreciation and amortization expenses increased $5 million in 2024 compared with 2023 primarily due to higher gas utility plant balances. --- ## New in Current Filing: Assets, Liabilities and Equity The Companies' assets, liabilities and equity at December 31, 2024 and 2023 are summarized as follows: CECONYO&RCon Edison TransmissionOther (a)Con Edison (b)(Millions of Dollars)2024202320242023202420232024202320242023ASSETSCurrent assets$6,298$5,981$385$302$26$25$(45)$229$6,664$6,537Investments6846082322419365 - 41,126999Net plant48,98346,6483,1662,9431717(1) - 52,16549,608Other noncurrent assets9,6858,3634864087742940910,6079,187Total Assets$65,650$61,600$4,060$3,675$469$414$383$642$70,562$66,331LIABILITIES AND SHAREHOLDERS' EQUITYCurrent liabilities$5,559$5,694$467$349$7$5$400$414$6,433$6,462Noncurrent liabilities16,71115,9501,2091,146(65)(76)(339)(236)17,51616,784Long-term debt23,40920,8101,2421,118 - - - (1)24,65121,927Equity19,97119,1461,1421,06252748532246521,96221,158Total Liabilities and Equity$65,650$61,600$4,060$3,675$469$414$383$642$70,562$66,331 CECONY O&R --- ## New in Current Filing: Off-Balance Sheet Arrangements In December 2024, Con Edison entered into a forward sale agreement relating to 7,000,000 of its common shares which met the SEC definition of an off-balance sheet arrangement. See Note C to the financial statements in Item 8 for more information on this agreement. None of the Companies' other transactions, agreements or contractual arrangements meet the SEC definition of off-balance sheet arrangements. 76CON EDISON ANNUAL REPORT 2024 76CON EDISON ANNUAL REPORT 2024 76CON EDISON ANNUAL REPORT 2024 76 --- ## New in Current Filing: Notes to the Financial Statements 107 Note A - Summary of Significant Accounting Policies 108 Note B - Regulatory Matters 115 Note C - Capitalization 133 Note D - Short-Term Borrowing 135 Note E - Pension Benefits 136 Note F - Other Postretirement Benefits 141 Note G - Environmental Matters 146 Note H - Material Contingencies 148 Note I - Electricity and Gas Purchase Agreements 149 Note J - Leases 150 Note K - Goodwill 152 Note L - Income Tax 152 Note M - Revenue Recognition 156 Note N - Current Expected Credit Losses 157 Note O - Stock-Based Compensation 158 Note P - Financial Information by Business Segment 162 Note Q - Derivative Instruments and Hedging Activities 165 Note R - Fair Value Measurements 167 Note S - Variable Interest Entities 170 Note T - Asset Retirement Obligations 171 Note U - Related Party Transactions 172 Note V - New Financial Accounting Standards 173 Note W - Dispositions 173 Note X - Held-for-Sale Treatment of the Clean Energy Businesses 175 --- ## New in Current Filing: Consolidated Balance Sheet (Millions of Dollars)December 31, 2024December 31, 2023ASSETSCURRENT ASSETSCash and temporary cash investments$1,324$1,189Accounts receivable - customers, net allowance for uncollectible accounts of $620 and $360 in 2024 and 2023, respectively2,4402,418Other receivables, net allowance for uncollectible accounts of $41 and $13 in 2024 and 2023, respectively292444Accrued unbilled revenue848722Taxes receivable1451Fuel oil, gas in storage, materials and supplies, at average cost485469Prepayments445470Regulatory assets141281Revenue decoupling mechanism receivable202203Fair value of derivative assets1552Assets held for sale133163Other current assets 194125TOTAL CURRENT ASSETS6,6646,537INVESTMENTS1,126999UTILITY PLANT, AT ORIGINAL COSTElectric41,20639,071Gas15,12714,318Steam3,1873,085General4,8514,835TOTAL64,37161,309Less: Accumulated depreciation15,38414,157Net48,98747,152Construction work in progress3,1652,442NET UTILITY PLANT52,15249,594NON-UTILITY PLANTNon-utility property, net accumulated depreciation of $25 and $24 in 2024 and 2023, respectively1213Construction work in progress11NET PLANT52,16549,608OTHER NONCURRENT ASSETSGoodwill408408Operating lease right-of-use-asset493533 Regulatory assets5,5234,607Pension and retiree benefits3,7913,275Fair value of derivative assets2748Other deferred charges and noncurrent assets 365316TOTAL OTHER NONCURRENT ASSETS10,6079,187TOTAL ASSETS$70,562$66,331 Accounts receivable - customers, net allowance for uncollectible accounts of $620 and $360 in 2024 and 2023, respectively Other receivables, net allowance for uncollectible accounts of $41 and $13 in 2024 and 2023, respectively Non-utility property, net accumulated depreciation of $25 and $24 in 2024 and 2023, respectively The accompanying notes are an integral part of these financial statements. 90CON EDISON ANNUAL REPORT 2024 90CON EDISON ANNUAL REPORT 2024 90CON EDISON ANNUAL REPORT 2024 90 --- ## New in Current Filing: Consolidated Balance Sheet (Millions of Dollars)December 31, 2024December 31, 2023ASSETSCURRENT ASSETSCash and temporary cash investments$1,324$1,189Accounts receivable - customers, net allowance for uncollectible accounts of $620 and $360 in 2024 and 2023, respectively2,4402,418Other receivables, net allowance for uncollectible accounts of $41 and $13 in 2024 and 2023, respectively292444Accrued unbilled revenue848722Taxes receivable1451Fuel oil, gas in storage, materials and supplies, at average cost485469Prepayments445470Regulatory assets141281Revenue decoupling mechanism receivable202203Fair value of derivative assets1552Assets held for sale133163Other current assets 194125TOTAL CURRENT ASSETS6,6646,537INVESTMENTS1,126999UTILITY PLANT, AT ORIGINAL COSTElectric41,20639,071Gas15,12714,318Steam3,1873,085General4,8514,835TOTAL64,37161,309Less: Accumulated depreciation15,38414,157Net48,98747,152Construction work in progress3,1652,442NET UTILITY PLANT52,15249,594NON-UTILITY PLANTNon-utility property, net accumulated depreciation of $25 and $24 in 2024 and 2023, respectively1213Construction work in progress11NET PLANT52,16549,608OTHER NONCURRENT ASSETSGoodwill408408Operating lease right-of-use-asset493533 Regulatory assets5,5234,607Pension and retiree benefits3,7913,275Fair value of derivative assets2748Other deferred charges and noncurrent assets 365316TOTAL OTHER NONCURRENT ASSETS10,6079,187TOTAL ASSETS$70,562$66,331 Accounts receivable - customers, net allowance for uncollectible accounts of $620 and $360 in 2024 and 2023, respectively Other receivables, net allowance for uncollectible accounts of $41 and $13 in 2024 and 2023, respectively Non-utility property, net accumulated depreciation of $25 and $24 in 2024 and 2023, respectively The accompanying notes are an integral part of these financial statements. 90CON EDISON ANNUAL REPORT 2024 90CON EDISON ANNUAL REPORT 2024 90CON EDISON ANNUAL REPORT 2024 90 --- ## New in Current Filing: December 31, The accompanying notes are an integral part of these financial statements. CON EDISON ANNUAL REPORT 202493 CON EDISON ANNUAL REPORT 202493 CON EDISON ANNUAL REPORT 202493 93 --- ## New in Current Filing: LONG-TERM DEBT (Millions of Dollars) 94CON EDISON ANNUAL REPORT 2024 94CON EDISON ANNUAL REPORT 2024 94CON EDISON ANNUAL REPORT 2024 94 20535.902023C90090020536.592023A505020545.702024B1,000 - 20545.412024A125 - 20544.6252014C75075020555.502024E650 - 20564.302016C50050020574.002017C35035020584.502018B70070020593.702019B60060020603.002020C60060020613.602021B750750TOTAL DEBENTURES$24,675$21,950TAX-EXEMPT DEBT - Notes issued to New York State Energy Research and Development Authority for Facilities Revenue Bonds:20363.23(b)2010A$ - $22520393.47(c)2004C999920393.40(c)2005A126126TOTAL TAX-EXEMPT DEBT 22545020394.82(d)Broken Bow II5962TOTAL PROJECT DEBT 5962Unamortized debt expense(179)(162)Unamortized debt discount (70)(60)TOTAL24,71022,240Less: Long-term debt due within one year - 251TOTAL LONG-TERM DEBT 24,71021,989Less: Held for sale project debt, net (c)5962TOTAL LONG-TERM DEBT EXCLUDING HELD FOR SALE24,65121,927TOTAL CAPITALIZATION $46,613$43,085 (d) (a) Rates reset quarterly; December 31, 2024 floating rate equals SOFR+0.52 percent. (b) In November 2024, all of the $225 million of Series 2010A tax-exempt bonds issued for the benefit of CECONY, bearing interest at a weekly rate, were redeemed. (c) Rates reset weekly; December 31, 2024 rates shown (d) The sale and transfer of Broken Bow II, including the related debt, was completed in January 2025. See Notes C, W and X. The accompanying notes are an integral part of these financial statements. CON EDISON ANNUAL REPORT 202495 CON EDISON ANNUAL REPORT 202495 CON EDISON ANNUAL REPORT 202495 95 --- ## New in Current Filing: Consolidated Income Statement For the Years Ended December 31,(Millions of Dollars/Except Share Data)202420232022OPERATING REVENUESElectric$11,568$10,835$10,522Gas3,1073,1273,237Steam578569593Non-utility31321,318TOTAL OPERATING REVENUES15,25614,66315,670OPERATING EXPENSESPurchased power2,5692,5412,479Fuel170282356Gas purchased for resale5998291,245Other operations and maintenance3,7513,6063,905Depreciation and amortization2,1552,0312,056Taxes, other than income taxes3,2803,0433,005TOTAL OPERATING EXPENSES12,52412,33213,046Gain (Loss) on sale of the Clean Energy Businesses(62)865 - OPERATING INCOME2,6703,1962,624OTHER INCOME (DEDUCTIONS)Investment income626220Other income635834402Allowance for equity funds used during construction382619Other deductions(80)(92)(115)TOTAL OTHER INCOME655830326INCOME BEFORE INTEREST AND INCOME TAX EXPENSE3,3254,0262,950INTEREST EXPENSE (INCOME)Interest on long-term debt1,084962987Other interest expense (income)166113(99)Allowance for borrowed funds used during construction(63)(52)(36)NET INTEREST EXPENSE1,1871,023852INCOME BEFORE INCOME TAX EXPENSE2,1383,0032,098INCOME TAX EXPENSE318487498NET INCOME$1,820$2,516$1,600Loss attributable to non-controlling interest$ - $(3)$(60)NET INCOME FOR COMMON STOCK$1,820$2,519$1,660Net income per common share - basic$5.26$7.25$4.68Net income per common share - diluted$5.24$7.21$4.66AVERAGE NUMBER OF SHARES OUTSTANDING - BASIC (IN MILLIONS)346.0347.7354.5AVERAGE NUMBER OF SHARES OUTSTANDING - DILUTED (IN MILLIONS)347.3349.3355.8 The accompanying notes are an integral part of these financial statements. CON EDISON ANNUAL REPORT 202487 CON EDISON ANNUAL REPORT 202487 CON EDISON ANNUAL REPORT 202487 87 --- ## New in Current Filing: Consolidated Balance Sheet (Millions of Dollars)December 31, 2024December 31, 2023ASSETSCURRENT ASSETSCash and temporary cash investments$1,324$1,189Accounts receivable - customers, net allowance for uncollectible accounts of $620 and $360 in 2024 and 2023, respectively2,4402,418Other receivables, net allowance for uncollectible accounts of $41 and $13 in 2024 and 2023, respectively292444Accrued unbilled revenue848722Taxes receivable1451Fuel oil, gas in storage, materials and supplies, at average cost485469Prepayments445470Regulatory assets141281Revenue decoupling mechanism receivable202203Fair value of derivative assets1552Assets held for sale133163Other current assets 194125TOTAL CURRENT ASSETS6,6646,537INVESTMENTS1,126999UTILITY PLANT, AT ORIGINAL COSTElectric41,20639,071Gas15,12714,318Steam3,1873,085General4,8514,835TOTAL64,37161,309Less: Accumulated depreciation15,38414,157Net48,98747,152Construction work in progress3,1652,442NET UTILITY PLANT52,15249,594NON-UTILITY PLANTNon-utility property, net accumulated depreciation of $25 and $24 in 2024 and 2023, respectively1213Construction work in progress11NET PLANT52,16549,608OTHER NONCURRENT ASSETSGoodwill408408Operating lease right-of-use-asset493533 Regulatory assets5,5234,607Pension and retiree benefits3,7913,275Fair value of derivative assets2748Other deferred charges and noncurrent assets 365316TOTAL OTHER NONCURRENT ASSETS10,6079,187TOTAL ASSETS$70,562$66,331 Accounts receivable - customers, net allowance for uncollectible accounts of $620 and $360 in 2024 and 2023, respectively Other receivables, net allowance for uncollectible accounts of $41 and $13 in 2024 and 2023, respectively Non-utility property, net accumulated depreciation of $25 and $24 in 2024 and 2023, respectively The accompanying notes are an integral part of these financial statements. 90CON EDISON ANNUAL REPORT 2024 90CON EDISON ANNUAL REPORT 2024 90CON EDISON ANNUAL REPORT 2024 90 --- ## New in Current Filing: Income/(Loss) The accompanying notes are an integral part of these financial statements. 104CON EDISON ANNUAL REPORT 2024 104CON EDISON ANNUAL REPORT 2024 104CON EDISON ANNUAL REPORT 2024 104 --- ## New in Current Filing: LONG-TERM DEBT (Millions of Dollars) 94CON EDISON ANNUAL REPORT 2024 94CON EDISON ANNUAL REPORT 2024 94CON EDISON ANNUAL REPORT 2024 94 20535.902023C90090020536.592023A505020545.702024B1,000 - 20545.412024A125 - 20544.6252014C75075020555.502024E650 - 20564.302016C50050020574.002017C35035020584.502018B70070020593.702019B60060020603.002020C60060020613.602021B750750TOTAL DEBENTURES$24,675$21,950TAX-EXEMPT DEBT - Notes issued to New York State Energy Research and Development Authority for Facilities Revenue Bonds:20363.23(b)2010A$ - $22520393.47(c)2004C999920393.40(c)2005A126126TOTAL TAX-EXEMPT DEBT 22545020394.82(d)Broken Bow II5962TOTAL PROJECT DEBT 5962Unamortized debt expense(179)(162)Unamortized debt discount (70)(60)TOTAL24,71022,240Less: Long-term debt due within one year - 251TOTAL LONG-TERM DEBT 24,71021,989Less: Held for sale project debt, net (c)5962TOTAL LONG-TERM DEBT EXCLUDING HELD FOR SALE24,65121,927TOTAL CAPITALIZATION $46,613$43,085 (d) (a) Rates reset quarterly; December 31, 2024 floating rate equals SOFR+0.52 percent. (b) In November 2024, all of the $225 million of Series 2010A tax-exempt bonds issued for the benefit of CECONY, bearing interest at a weekly rate, were redeemed. (c) Rates reset weekly; December 31, 2024 rates shown (d) The sale and transfer of Broken Bow II, including the related debt, was completed in January 2025. See Notes C, W and X. The accompanying notes are an integral part of these financial statements. CON EDISON ANNUAL REPORT 202495 CON EDISON ANNUAL REPORT 202495 CON EDISON ANNUAL REPORT 202495 95 --- ## New in Current Filing: Reconciliation of Cash, Temporary Cash Investments and Restricted Cash Cash, temporary cash investments and restricted cash are presented on a combined basis in the Companies' consolidated statements of cash flows. At December 31, 2024 and 2023, cash, temporary cash investments and restricted cash for Con Edison were as follows; CECONY did not have material restricted cash balances as of December 31, 2024 and 2023: At December 31,Con Edison(Millions of Dollars)20242023Cash and temporary cash investments$1,324$1,189Restricted cash (a)96Total cash, temporary cash investments and restricted cash$1,333$1,195 (a)On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note W. Con Edison retained one deferred project, Broken Bow II, a 75 MW nameplate capacity wind power project located in Nebraska. Con Edison's restricted cash for the 2023 and 2024 periods primarily include restricted cash of Broken Bow II, which was held for sale as of December 31, 2024. Broken Bow II was sold and transferred in January 2025. See Note W and Note X. (a) --- ## New in Current Filing: Variable Interest Entities The accounting rules for consolidation address the consolidation of a variable interest entity (VIE) by a business enterprise that is the primary beneficiary. A VIE is an entity that does not have a sufficient equity investment at risk to permit it to finance its activities without additional subordinated financial support, or whose equity investors lack the characteristics of a controlling financial interest. The primary beneficiary is the business enterprise that has the power to direct the activities of the VIE that most significantly impact the VIE's economic performance and either absorbs a significant amount of the VIE's losses or has the right to receive benefits that could be significant to the VIE. The Companies enter into arrangements including leases, partnerships and electricity purchase agreements, with various entities. As a result of these arrangements, the Companies retain or may retain a variable interest in these entities. --- ## New in Current Filing: Use of Hypothetical Liquidation at Book Value For certain investments of the Clean Energy Businesses and of Con Edison, Con Edison has determined that the use of HLBV accounting is reasonable and appropriate to attribute income and loss to the tax equity investors. Using the HLBV method, the company's earnings from the projects are adjusted to reflect the income or loss allocable to the tax equity investors calculated based on how the project would allocate and distribute its cash if it were to sell all of its assets for their carrying amounts and liquidate at a particular point in time. Under the HLBV 114CON EDISON ANNUAL REPORT 2024 114CON EDISON ANNUAL REPORT 2024 114CON EDISON ANNUAL REPORT 2024 114 method, the company calculates the liquidation value allocable to the tax equity investors at the beginning and end of each period based on the contractual liquidation waterfall and adjusts its income for the period to reflect the change in the liquidation value allocable to the tax equity investors based on the terms of the partnerships' operating agreements. See Note S. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note W. --- ## New in Current Filing: Assets Held for Sale Generally, a long-lived asset or business to be sold is classified as held for sale in the period in which management, with approval from the Board of Directors, commits to a plan to sell, and a sale is expected to be completed within one year. Con Edison records assets and liabilities, once held for sale, at the lower of their carrying value or their estimated fair value less cost to sell, and also stops recording depreciation and amortization on assets held for sale. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses (which was classified as held for sale as of December 31, 2022) with the exception of two tax equity interests and one deferred project, Broken Bow II. In January 2025, Con Edison completed the sale and transfer of Broken Bow II to RWE. For further information, see Note W and Note X. The sale of the Clean Energy Businesses did not represent a strategic shift that had or would have had a major effect on Con Edison, and as such, the sale did not qualify for treatment as a discontinued operation. For further information, see Note W and Note X. --- ## New in Current Filing: Note B - Regulatory Matters Rate Plans The Utilities provide service to New York customers according to the terms of tariffs approved by the NYSPSC. Tariffs for service to customers of Rockland Electric Company (RECO), O&R's New Jersey regulated utility subsidiary, are approved by the New Jersey Board of Public Utilities (NJBPU). The tariffs include schedules of rates for service that limit the rates charged by the Utilities to amounts that the Utilities recover from their customers costs approved by the regulator, including capital costs, of providing service to customers as defined by the tariff. The tariffs implement rate plans adopted by state utility regulators in rate orders issued at the conclusion of rate proceedings. Pursuant to the Utilities' rate plans, there generally can be no change to the charges to customers during the respective terms of the rate plans other than specified adjustments provided for in the rate plans. The Utilities' rate plans each cover specified periods, but rates determined pursuant to a plan generally continue in effect until a new rate plan is approved by the state utility regulator. Common provisions of the Utilities' New York rate plans include: Base Rates are designed to recover core costs of providing electric, gas or steam delivery service such as the costs of constructing, operating and maintaining a service's system. Earnings sharing that require the Utilities to defer for customer benefit a portion of earnings over specified rates of return on common equity. There is no symmetric mechanism for earnings below specified rates of return on common equity. Negative revenue adjustments for failure to meet certain performance standards relating to service, reliability, safety and other matters. Net utility plant reconciliations that require deferral as a regulatory liability of the revenue requirement impact of the amount, if any, by which actual average net utility plant balances are less than amounts reflected in rates. There is generally no symmetric mechanism if actual average net utility plant balances are more than amounts reflected in rates. Other revenue adjustments that represent positive revenue adjustments, positive incentives, and earnings adjustments mechanisms for achievement of performance standards related to achievement of clean energy goals, safety and other matters. CON EDISON ANNUAL REPORT 2024115 CON EDISON ANNUAL REPORT 2024115 CON EDISON ANNUAL REPORT 2024115 115 Rate base, as reflected in the rate plans, is, in general, the sum of the Utilities' net plant, working capital and certain regulatory assets less deferred taxes and certain regulatory liabilities. For each rate plan, the NYSPSC uses a forecast of the average rate base for each year that new rates would be in effect ("rate year"). Recoverable energy costs that allow the Utilities to recover on a current basis the costs for the energy they supply with no mark-up to their full-service customers. Regulatory reconciliations that reconcile pension and other postretirement benefit costs, environmental remediation costs, property taxes, variable-rate tax-exempt debt and certain other costs (including late payment charges and write-offs of customer accounts receivable balances) to amounts reflected in delivery rates for such costs. In addition, changes in the Utilities' costs not reflected in rates, in excess of certain amounts, resulting from changes in tax or changes in legislation, regulation or related actions, are deferred as a regulatory asset or regulatory liability to be reflected in the Utilities' next rate plan or in a manner to be determined by the NYSPSC. Also, the Utilities generally retain the right to petition for recovery or accounting deferral of extraordinary and material cost increases and provision is sometimes made for the utility to retain a share of cost reductions, for example, property tax refunds. Revenue decoupling mechanisms that reconcile actual energy delivery revenues to the authorized delivery revenues approved by the NYSPSC. The difference is accrued with interest for refund to, or recovery from customers, as applicable. Weighted average cost of capital is determined based on the authorized common equity ratio, return on common equity, cost of long-term debt and cost of customer deposits reflected in each rate plan. For each rate plan, the revenues designed to provide the utility a return on invested capital for each rate year are determined by multiplying each utility rate base by its pre-tax weighted average cost of capital. The Utilities' actual return on common equity will reflect their actual operations for each rate year, and may be more or less than the authorized return on equity reflected in their rate plans (and if more, may be subject to earnings sharing). 116CON EDISON ANNUAL REPORT 2024 116CON EDISON ANNUAL REPORT 2024 116CON EDISON ANNUAL REPORT 2024 116 The following tables contain a summary of the Utilities' rate plans:CECONY - Electric Effective periodJanuary 2020 - December 2022 January 2023 - December 2025Base rate changes Yr. 1 - $113 million (a) Yr. 2 - $370 million (a)Yr. 3 - $326 million (a) Yr. 1 - $442 million (c) Yr. 2 - $518 million (c)Yr. 3 - $382 million (c)Amortizations to income of net regulatory (assets) and liabilitiesYr. 1 - $267 million (b) Yr. 2 - $269 million (b) Yr. 3 - $272 million (b) Yr. 1 - $104 million (j)Yr. 2 - $49 million (j)Yr. 3 - $(205) million (j)Other revenue sourcesRetention of $75 million of annual transmission congestion revenues.Potential earnings adjustment mechanism incentives for energy efficiency and other potential incentives of up to: Yr. 1 - $69 million Yr. 2 - $74 millionYr. 3 - $79 million In 2020, 2021 and 2022, the company recorded $34 million, $64 million and $33 million primarily related to earnings adjustment mechanism incentives for energy efficiency, respectively. In 2022, the company recorded a positive incentive of $4 million. Retention of $75 million of annual transmission congestion revenues.Potential earnings adjustment mechanism incentives for energy efficiency and other potential incentives of up to: Yr. 1 - $70 million Yr. 2 - $75 millionYr. 3 - $79 million In 2023 and 2024, the company recorded $34.4 million and $52.3 million primarily related to earnings adjustment mechanism incentives for energy efficiency, respectively.Revenue decoupling mechanismsContinuation of reconciliation of actual to authorized electric delivery revenues.In 2020, 2021 and 2022, the company deferred for recovery from customers $242 million, $226 million and $90 million of revenues, respectively. Continuation of reconciliation of actual to authorized electric delivery revenues.In 2023 and 2024, the company deferred for recovery from customers $162 million and $164 million of revenues, respectively.Recoverable energy costs Continuation of current rate recovery of purchased power and fuel costs. Continuation of current rate recovery of purchased power and fuel costs.Negative revenue adjustmentsPotential charges if certain performance targets relating to service, reliability, safety and other matters are not met:Yr. 1 - $450 million Yr. 2 - $461 millionYr. 3 - $476 millionIn 2020, the company recorded negative revenue adjustments of $5 million. In 2021, the company did not record any negative revenue adjustments. In 2022, the company recorded negative revenue adjustments of $3 million. Potential charges if certain performance targets relating to service, reliability, safety and other matters are not met:Yr. 1 - $516 million Yr. 2 - $557 millionYr. 3 - $597 millionIn 2023 and 2024, the company did not record any negative revenue adjustments.Regulatory reconciliations Continuation of reconciliation of expenses for pension and other postretirement benefits, variable-rate debt, major storms, property taxes (d), municipal infrastructure support costs (e), the impact of new laws and environmental site investigation and remediation to amounts reflected in rates (f).In 2020 and 2021, the company deferred $288 million and $191 million of net regulatory assets, respectively. In 2022, the company deferred $138 million of net regulatory liabilities. Reconciliation of late payment charges (i) and expenses for uncollectibles, pension and other postretirement benefits, variable-rate debt, major storms, property taxes (d), municipal infrastructure support costs (e), the impact of new laws and environmental site investigation and remediation to amounts reflected in rates (f).In 2023 and 2024, the company deferred $140 million and $52 million of net regulatory liabilities, respectively.Net utility plant reconciliationsTarget levels reflected in rates:Electric average net plant target excluding advanced metering infrastructure (AMI): Yr. 1 - $24,491 million Yr. 2 - $25,092 millionYr. 3 - $25,708 million AMI (h): Yr. 1 - $572 million Yr. 2 - $740 millionYr. 3 - $806 million In 2020, the company deferred $4.1 million as a regulatory asset. In 2021 and 2022, the company deferred $3.2 million and $1.8 million, as a regulatory liability, respectively. Target levels reflected in rates:Electric average net plant target excluding advanced metering infrastructure (AMI) and Customer Service System (CSS) for Yr. 1:Yr. 1 - $27,847 million Yr. 2 - $29,884 millionYr. 3 - $31,026 million AMI (h): Yr. 1 - $744 million CSS: Yr. 1 - $11 millionIn 2023 and 2024, the company deferred $1.2 million and $(25.3) million as a regulatory asset and regulatory liability, respectively.Average rate baseYr. 1 - $21,660 million Yr. 2 - $22,783 million Yr. 3 - $23,926 million Yr. 1 - $26,095 million Yr. 2 - $27,925 million Yr. 3 - $29,362 million Yr. 1 - $113 million (a) Yr. 2 - $370 million (a) Yr. 3 - $326 million (a) Yr. 1 - $442 million (c) Yr. 2 - $518 million (c) Yr. 3 - $382 million (c) Yr. 1 - $267 million (b) Yr. 2 - $269 million (b) Yr. 3 - $272 million (b) Yr. 1 - $104 million (j) Yr. 2 - $49 million (j) Yr. 3 - $(205) million (j) Retention of $75 million of annual transmission congestion revenues. Potential earnings adjustment mechanism incentives for energy efficiency and other potential incentives of up to: Yr. 1 - $69 million Yr. 2 - $74 million Yr. 3 - $79 million In 2020, 2021 and 2022, the company recorded $34 million, $64 million and $33 million primarily related to earnings adjustment mechanism incentives for energy efficiency, respectively. In 2022, the company recorded a positive incentive of $4 million. Retention of $75 million of annual transmission congestion revenues. Potential earnings adjustment mechanism incentives for energy efficiency and other potential incentives of up to: Yr. 1 - $70 million Yr. 2 - $75 million Yr. 3 - $79 million In 2023 and 2024, the company recorded $34.4 million and $52.3 million primarily related to earnings adjustment mechanism incentives for energy efficiency, respectively. Continuation of reconciliation of actual to authorized electric delivery revenues. In 2020, 2021 and 2022, the company deferred for recovery from customers $242 million, $226 million and $90 million of revenues, respectively. Continuation of reconciliation of actual to authorized electric delivery revenues. In 2023 and 2024, the company deferred for recovery from customers $162 million and $164 million of revenues, respectively. Potential charges if certain performance targets relating to service, reliability, safety and other matters are not met: Yr. 1 - $450 million Yr. 2 - $461 million Yr. 3 - $476 million In 2020, the company recorded negative revenue adjustments of $5 million. In 2021, the company did not record any negative revenue adjustments. In 2022, the company recorded negative revenue adjustments of $3 million. Potential charges if certain performance targets relating to service, reliability, safety and other matters are not met: Yr. 1 - $516 million Yr. 2 - $557 million Yr. 3 - $597 million In 2023 and 2024, the company did not record any negative revenue adjustments. Continuation of reconciliation of expenses for pension and other postretirement benefits, variable-rate debt, major storms, property taxes (d), municipal infrastructure support costs (e), the impact of new laws and environmental site investigation and remediation to amounts reflected in rates (f). In 2020 and 2021, the company deferred $288 million and $191 million of net regulatory assets, respectively. In 2022, the company deferred $138 million of net regulatory liabilities. Reconciliation of late payment charges (i) and expenses for uncollectibles, pension and other postretirement benefits, variable-rate debt, major storms, property taxes (d), municipal infrastructure support costs (e), the impact of new laws and environmental site investigation and remediation to amounts reflected in rates (f). In 2023 and 2024, the company deferred $140 million and $52 million of net regulatory liabilities, respectively. Target levels reflected in rates: Electric average net plant target excluding advanced metering infrastructure (AMI): Yr. 1 - $24,491 million Yr. 2 - $25,092 million Yr. 3 - $25,708 million AMI (h): Yr. 1 - $572 million Yr. 2 - $740 million Yr. 3 - $806 million In 2020, the company deferred $4.1 million as a regulatory asset. In 2021 and 2022, the company deferred $3.2 million and $1.8 million, as a regulatory liability, respectively. Target levels reflected in rates: Electric average net plant target excluding advanced metering infrastructure (AMI) and Customer Service System (CSS) for Yr. 1: Yr. 1 - $27,847 million Yr. 2 - $29,884 million Yr. 3 - $31,026 million AMI (h): Yr. 1 - $744 million CSS: Yr. 1 - $11 million In 2023 and 2024, the company deferred $1.2 million and $(25.3) million as a regulatory asset and regulatory liability, respectively. Yr. 1 - $21,660 million Yr. 2 - $22,783 million Yr. 3 - $23,926 million Yr. 1 - $26,095 million Yr. 2 - $27,925 million Yr. 3 - $29,362 million CON EDISON ANNUAL REPORT 2024117 CON EDISON ANNUAL REPORT 2024117 CON EDISON ANNUAL REPORT 2024117 117 Weighted average cost of capital (after-tax)Yr. 1 to Yr. 3 - 6.61 percent Yr. 1 - 6.75 percent Yr. 2 - 6.79 percent Yr. 3 - 6.85 percent Authorized return on common equity8.8 percent 9.25 percentActual return on common equity (h) (i)Yr. 1 - 8.5 percent Yr. 2 - 8.03 percentYr. 3 - 8.41 percent Yr. 1 - 9.46 percent Yr. 2 - 9.21 percentEarnings sharingMost earnings above an annual earnings threshold of 9.3 percent are to be applied to reduce regulatory assets for environmental remediation and other costs accumulated in the rate year.In 2020, 2021 and 2022, the company had no earnings sharing above the threshold. A reserve of $4.3 million was recorded in 2021 related to a potential adjustment to the excess earnings sharing amount for 2016. Most earnings above an annual earnings threshold of 9.75 percent are to be applied to reduce regulatory assets for environmental remediation and other costs accumulated in the rate year.In 2023 and 2024, the company had no earnings sharing above the threshold. Cost of long-term debtYr. 1 to Yr. 3 - 4.63 percent Yr. 1 - 4.46 percentYr. 2 - 4.54 percentYr. 3 - 4.64 percent Common equity ratio48 percent 48 percent Yr. 1 to Yr. 3 - 6.61 percent Yr. 1 - 6.75 percent Yr. 2 - 6.79 percent Yr. 3 - 6.85 percent 8.8 percent 9.25 percent Yr. 1 - 8.5 percent Yr. 2 - 8.03 percent Yr. 3 - 8.41 percent Yr. 1 - 9.46 percent Yr. 2 - 9.21 percent Most earnings above an annual earnings threshold of 9.3 percent are to be applied to reduce regulatory assets for environmental remediation and other costs accumulated in the rate year. In 2020, 2021 and 2022, the company had no earnings sharing above the threshold. A reserve of $4.3 million was recorded in 2021 related to a potential adjustment to the excess earnings sharing amount for 2016. Most earnings above an annual earnings threshold of 9.75 percent are to be applied to reduce regulatory assets for environmental remediation and other costs accumulated in the rate year. In 2023 and 2024, the company had no earnings sharing above the threshold. Yr. 1 to Yr. 3 - 4.63 percent Yr. 1 - 4.46 percent Yr. 2 - 4.54 percent Yr. 3 - 4.64 percent 48 percent (a)Base rates reflect recovery by the company of certain costs of its energy efficiency, demonstration projects, non-wire alternative projects (including the Brooklyn Queens demand management program), and off-peak electric vehicle charging programs (Yr. 1 - $206 million; Yr. 2 - $245 million; and Yr. 3 - $251 million) over a 10-year period, including the overall pre-tax rate of return on such costs. (b)Amounts reflect amortization of the 2018 tax savings under the federal Tax Cuts and Jobs Act of 2017 (TCJA) allocable to CECONY's electric customers ($377 million) over a three-year period ($126 million annually), the protected portion of the regulatory liability for excess deferred income taxes allocable to CECONY's electric customers ($1,663 million) over the remaining lives of the related assets ($49 million in Yr. 1, $50 million in Yr. 2, and $53 million in Yr. 3) and the unprotected portion of the net regulatory liability ($784 million) over five years ($157 million annually). Amounts also reflect amortization of the regulatory asset for deferred MTA power reliability costs ($238 million) over a five-year period ($48 million annually). (c)The electric base rate increases shown above will be implemented with increases of $457 million in Yr. 1; $457 million in Yr. 2; and $457 million in Yr. 3 in order to levelize the customer bill impact. New rates were effective as of January 1, 2023 and CECONY began billing customers at the new levelized rate in August 2023. The shortfall in revenues due to the timing of billing to customers ($216 million) were collected through a surcharge billed through 2024, including a carrying charge on the outstanding balance. Base rates reflect recovery by the company of certain costs of its energy efficiency, demonstration projects, non-wire alternative projects (including the Brooklyn Queens demand management program), and off-peak electric vehicle charging programs (Yr. 1 - $244 million; Yr. 2 - $237 million; and Yr. 3 - $281 million) over periods varying between seven and fifteen years, including the overall pre-tax rate of return on such costs. (d)Deferrals for property taxes are limited to 90 percent of the difference from amounts reflected in rates, subject to an annual maximum for the remaining difference of not more than a maximum number of basis points impact on return on common equity of 10.0 basis points, 7.5 basis points and 5.0 basis points for each of Yr. 1, Yr. 2 and Yr. 3, respectively, of the 2020 - 2022 rate plan and 10.0 basis points, 5.0 basis points and 5.0 basis points for each of Yr. 1, Yr. 2 and Yr. 3, respectively, of the 2023 - 2025 rate plan. (e)In general, if actual expenses for municipal infrastructure support (other than company labor) are below the amounts reflected in rates the company will defer the difference for credit to customers, and if the actual expenses are above the amount reflected in rates the company will defer for recovery from customers 80 percent of the difference subject to a maximum deferral, subject to certain conditions, of 15 percent of the amount reflected in the rate plans. (f)In addition, the NYSPSC continues its focused operations audit to investigate CECONY's financial accounting for income taxes. Any NYSPSC ordered adjustment to CECONY's financial accounting for income taxes is expected to be refunded to or collected from customers, as determined by the NYSPSC. See "Other Regulatory Matters," below. (g)Reconciliation of net utility plant for AMI will be done on a combined basis for electric and gas. (h)Calculated in accordance with the earnings calculation method prescribed in the rate order. (i)In November 2021, the NYSPSC issued an order that allowed CECONY to recover $43 million of late payment charges and fees that were not billed for the year ended December 31, 2020. The recalculated return on equity for 2020 which reflects the recovery of these fees is 8.81 percent. (j)Amounts reflect amortization of the TCJA allocable to CECONY's electric customers ($256 million) over a two-year period ($128 million in Yr. 1 and Yr. 2), the protected portion of the regulatory liability for excess deferred income taxes allocable to CECONY's electric customers ($1,512 million) over the remaining lives of the related assets ($34 million in Yr. 1, $63 million in Yr. 2, and $34 million in Yr. 3) and the unprotected portion of the net regulatory liability ($306 million) over two years ($153 million annually). Amounts also reflect amortization of the regulatory asset for deferred MTA power reliability costs ($93 million) over a three-year period ($31 million annually). In April 2023, the NYSPSC approved CECONY's December 2022 petition seeking cost recovery approval for a proposed clean energy hub in Brooklyn, New York (Brooklyn Clean Energy Hub). The Brooklyn Clean Energy Hub primarily addresses an identified reliability need in 2028 due to a forecasted increase in electric demand. Construction began in September 2023 and is expected to be completed by 2028. CECONY's January 2025 electric rate case filing reflected the costs for the Brooklyn Clean Energy Hub in base rates. --- ## No Match in Current: Results of Operations *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* Net income for common stock and earnings per share for the years ended December 31, 2023, 2022 and 2021 were as follows: (Millions of Dollars,except per share amounts)Net Income forCommon StockEarnings per Share 202320222021202320222021CECONY$1,606$1,390$1,344$4.62 $3.92 $3.86 O&R9688750.28 0.25 0.22 Clean Energy Businesses (a)223822660.07 1.08 0.76 Con Edison Transmission (b)37(1)(316)0.11 - (0.91)Other (c)758(199)(23)2.17 (0.57)(0.07)Con Edison (d)$2,519$1,660$1,346$7.25 $4.68 $3.86 --- ## No Match in Current: Con Edison (b) *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* (b) Represents the consolidated results of operations of Con Edison and its businesses. (c) For the year ended December 31, 2021, Con Edison Transmission recorded a $5 million loss related to a goodwill impairment on its investment in Honeoye. See Note K to the financial statements in Item 8. (d) For the year ended December 31, 2021, Con Edison Transmission recorded pre-tax impairment losses of $212 million ($147 million, after-tax) on its investment in Stagecoach and during 2021 completed the sale of its interest in Stagecoach. For the year ended December 31, 2021, Con Edison Transmission recorded a pre-tax impairment loss of $231 million ($162 million, after-tax), to reduce the carrying value of its investment in MVP from $342 million to $111 million. See "Investment in Mountain Valley Pipeline, LLC (MVP)" in Note A to the financial statements in Item 8. (e) On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note W and Note X to the financial statements in Item 8. CON EDISON ANNUAL REPORT 202357 CON EDISON ANNUAL REPORT 202357 CON EDISON ANNUAL REPORT 202357 CON EDISON ANNUAL REPORT 2023 57 --- ## No Match in Current: Other Income (Deductions) *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* Other income increased $43 million in 2023 compared with 2022 primarily due to higher investment income from equity earnings from Con Edison Transmission's proportionate share of its investments in New York Transco ($10 million) and MVP ($33 million). --- ## No Match in Current: Income Tax Expense *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* Income taxes increased $103 million in 2023 compared with 2022 primarily due to higher income before income tax expense ($83 million), a remeasurement of state deferred tax assets and liabilities as a result of the enacted New York State legislation ($10 million), a decrease in the amortization of excess deferred federal income taxes due to the TCJA ($7 million) and higher reserve for injuries and damages ($3 million). O&R For the Year Ended December 31, 2023 For the Year Ended December 31, 2022 (Millions of Dollars)ElectricGas2023 TotalElectricGas2022 Total2023-2022VariationOperating revenues$759$297$1,056$773$312$1,085$(29)Purchased power247 - 247276 - 276(29)Gas purchased for resale - 111111 - 135135(24)Other operations and maintenance292833752757635124Depreciation and amortization76301067127988Taxes, other than income taxes5932915732892Operating income$85$41$126$94$42$136$(10) Electric O&R's results of electric operations for the year ended December 31, 2023 compared with the year ended December 31, 2022 were as follows: For the Years Ended December 31,(Millions of Dollars)20232022VariationOperating revenues$759$773$(14)Purchased power247276(29)Other operations and maintenance29227517Depreciation and amortization76715Taxes, other than income taxes59572Electric operating income$85$94$(9) CON EDISON ANNUAL REPORT 202361 CON EDISON ANNUAL REPORT 202361 CON EDISON ANNUAL REPORT 202361 CON EDISON ANNUAL REPORT 2023 61 O&R's electric sales and deliveries in 2023 compared with 2022 were: Millions of kWh Delivered Revenues in Millions (a) For the Years Ended For the Years Ended DescriptionDecember 31, 2023December 31, 2022VariationPercentVariation December 31, 2023December 31, 2022VariationPercentVariationResidential/Religious (b)1,917 1,916 1 0.1 %$419$413$61.5 %Commercial/Industrial958 944 14 1.5 147147 - - Retail choice customers2,397 2,580 (183)(7.1)172198(26)(13.1)Public authorities113 113 - - 1216(4)(25.0)Other operating revenues (c) - - - - 9(1)10LargeTotal5,385 5,553 (168)(3.0)%(d)$759$773$(14)(1.8)% Percent Variation Percent Variation (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. The majority of O&R's electric distribution revenues in New Jersey are subject to a conservation incentive program, as a result of which distribution revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved. O&R's electric transmission revenues in New Jersey are not subject to a conservation incentive program, and as a result, changes in such volumes do impact revenues. (b)"Residential/Religious" generally includes single-family dwellings, individual apartments in multi-family dwellings, religious organizations and certain other not-for-profit organizations. (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 O&R's service area decreased 0.1 percent in 2023 compared with 2022. Operating revenues decreased $14 million in 2023 compared with 2022 primarily due to lower purchased power expenses ($29 million), offset in part by higher revenues from the New York electric rate plan ($10 million) and a change in incentives earned under the earnings adjustment mechanisms (EAMs) ($4 million). Purchased power expenses decreased $29 million in 2023 compared with 2022 due to lower unit costs ($20 million) and purchased volumes ($9 million). Other operations and maintenance expenses increased $17 million in 2023 compared with 2022 primarily due to higher administrative and general expenses ($6 million), higher tree trimming expenses ($3 million), higher uncollectible expenses ($2 million), higher customer assistance costs ($2 million) and higher pension costs, reflecting reconciliation to the rate plan level ($2 million). Depreciation and amortization increased $5 million in 2023 compared with 2022 primarily due to higher electric utility plant balances. Gas O&R's results of gas operations for the year ended December 31, 2023 compared with the year ended December 31, 2022 were as follows: For the Years Ended December 31,(Millions of Dollars)20232022VariationOperating revenues$297$312$(15)Gas purchased for resale111135(24)Other operations and maintenance83767Depreciation and amortization30273Taxes, other than income taxes3232 - Gas operating income$41$42$(1) O&R's gas sales and deliveries, excluding off-system sales, in 2023 compared with 2022 were: 62CON EDISON ANNUAL REPORT 2023 62CON EDISON ANNUAL REPORT 2023 62CON EDISON ANNUAL REPORT 2023 62 CON EDISON ANNUAL REPORT 2023 Thousands of Dt Delivered Revenues in Millions (a) For the Years Ended For the Years Ended DescriptionDecember 31, 2023December 31, 2022VariationPercentVariationDecember 31, 2023December 31, 2022VariationPercentVariationResidential11,428 12,588 (1,160)(9.2)%$193$207$(14)(6.8)%General2,929 2,766 163 5.9 3738(1)(2.6)Firm transportation5,055 6,396 (1,341)(21.0)3845(7)(15.6)Total firm sales and transportation19,412 21,750 (2,338)(10.7)(b) 268290(22)(7.6)Interruptible sales3,301 3,911 (610)(15.6)%66 - - Generation plants4 10 (6)(60.0) - - - - Other334 673 (339)(50.4)11 - - Other gas revenues - - - - 2215746.7 Total23,051 26,344 (3,293)(12.5)%$297$312$(15)(4.8)% Percent Variation (a)Revenues from New York gas sales 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. (b)After adjusting for weather and other variations, firm sales and transportation volumes in O&R's service area remained consistent in 2023 compared with 2022. Operating revenues decreased $15 million in 2023 compared with 2022 primarily due to lower gas purchased for resale ($24 million), offset in part by higher revenues from the New York gas rate plan ($5 million). Gas purchased for resale decreased $24 million in 2023 compared with 2022 due to lower purchased volumes ($15 million) and unit cost ($9 million). Other operations and maintenance expenses increased $7 million in 2023 compared with 2022 primarily due to higher administrative and general expenses ($2 million), higher pension costs, reflecting reconciliation to the rate plan level ($2 million) and higher uncollectible expenses ($1 million). Depreciation and amortization increased $3 million in 2023 compared with 2022 primarily due to higher gas utility plant balances. --- ## No Match in Current: Other Income (Deductions) *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* Other income increased $43 million in 2023 compared with 2022 primarily due to higher investment income from equity earnings from Con Edison Transmission's proportionate share of its investments in New York Transco ($10 million) and MVP ($33 million). --- ## No Match in Current: Income Tax Expense *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* Income taxes increased $103 million in 2023 compared with 2022 primarily due to higher income before income tax expense ($83 million), a remeasurement of state deferred tax assets and liabilities as a result of the enacted New York State legislation ($10 million), a decrease in the amortization of excess deferred federal income taxes due to the TCJA ($7 million) and higher reserve for injuries and damages ($3 million). O&R For the Year Ended December 31, 2023 For the Year Ended December 31, 2022 (Millions of Dollars)ElectricGas2023 TotalElectricGas2022 Total2023-2022VariationOperating revenues$759$297$1,056$773$312$1,085$(29)Purchased power247 - 247276 - 276(29)Gas purchased for resale - 111111 - 135135(24)Other operations and maintenance292833752757635124Depreciation and amortization76301067127988Taxes, other than income taxes5932915732892Operating income$85$41$126$94$42$136$(10) Electric O&R's results of electric operations for the year ended December 31, 2023 compared with the year ended December 31, 2022 were as follows: For the Years Ended December 31,(Millions of Dollars)20232022VariationOperating revenues$759$773$(14)Purchased power247276(29)Other operations and maintenance29227517Depreciation and amortization76715Taxes, other than income taxes59572Electric operating income$85$94$(9) CON EDISON ANNUAL REPORT 202361 CON EDISON ANNUAL REPORT 202361 CON EDISON ANNUAL REPORT 202361 CON EDISON ANNUAL REPORT 2023 61 O&R's electric sales and deliveries in 2023 compared with 2022 were: Millions of kWh Delivered Revenues in Millions (a) For the Years Ended For the Years Ended DescriptionDecember 31, 2023December 31, 2022VariationPercentVariation December 31, 2023December 31, 2022VariationPercentVariationResidential/Religious (b)1,917 1,916 1 0.1 %$419$413$61.5 %Commercial/Industrial958 944 14 1.5 147147 - - Retail choice customers2,397 2,580 (183)(7.1)172198(26)(13.1)Public authorities113 113 - - 1216(4)(25.0)Other operating revenues (c) - - - - 9(1)10LargeTotal5,385 5,553 (168)(3.0)%(d)$759$773$(14)(1.8)% Percent Variation Percent Variation (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. The majority of O&R's electric distribution revenues in New Jersey are subject to a conservation incentive program, as a result of which distribution revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved. O&R's electric transmission revenues in New Jersey are not subject to a conservation incentive program, and as a result, changes in such volumes do impact revenues. (b)"Residential/Religious" generally includes single-family dwellings, individual apartments in multi-family dwellings, religious organizations and certain other not-for-profit organizations. (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 O&R's service area decreased 0.1 percent in 2023 compared with 2022. Operating revenues decreased $14 million in 2023 compared with 2022 primarily due to lower purchased power expenses ($29 million), offset in part by higher revenues from the New York electric rate plan ($10 million) and a change in incentives earned under the earnings adjustment mechanisms (EAMs) ($4 million). Purchased power expenses decreased $29 million in 2023 compared with 2022 due to lower unit costs ($20 million) and purchased volumes ($9 million). Other operations and maintenance expenses increased $17 million in 2023 compared with 2022 primarily due to higher administrative and general expenses ($6 million), higher tree trimming expenses ($3 million), higher uncollectible expenses ($2 million), higher customer assistance costs ($2 million) and higher pension costs, reflecting reconciliation to the rate plan level ($2 million). Depreciation and amortization increased $5 million in 2023 compared with 2022 primarily due to higher electric utility plant balances. Gas O&R's results of gas operations for the year ended December 31, 2023 compared with the year ended December 31, 2022 were as follows: For the Years Ended December 31,(Millions of Dollars)20232022VariationOperating revenues$297$312$(15)Gas purchased for resale111135(24)Other operations and maintenance83767Depreciation and amortization30273Taxes, other than income taxes3232 - Gas operating income$41$42$(1) O&R's gas sales and deliveries, excluding off-system sales, in 2023 compared with 2022 were: 62CON EDISON ANNUAL REPORT 2023 62CON EDISON ANNUAL REPORT 2023 62CON EDISON ANNUAL REPORT 2023 62 CON EDISON ANNUAL REPORT 2023 Thousands of Dt Delivered Revenues in Millions (a) For the Years Ended For the Years Ended DescriptionDecember 31, 2023December 31, 2022VariationPercentVariationDecember 31, 2023December 31, 2022VariationPercentVariationResidential11,428 12,588 (1,160)(9.2)%$193$207$(14)(6.8)%General2,929 2,766 163 5.9 3738(1)(2.6)Firm transportation5,055 6,396 (1,341)(21.0)3845(7)(15.6)Total firm sales and transportation19,412 21,750 (2,338)(10.7)(b) 268290(22)(7.6)Interruptible sales3,301 3,911 (610)(15.6)%66 - - Generation plants4 10 (6)(60.0) - - - - Other334 673 (339)(50.4)11 - - Other gas revenues - - - - 2215746.7 Total23,051 26,344 (3,293)(12.5)%$297$312$(15)(4.8)% Percent Variation (a)Revenues from New York gas sales 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. (b)After adjusting for weather and other variations, firm sales and transportation volumes in O&R's service area remained consistent in 2023 compared with 2022. Operating revenues decreased $15 million in 2023 compared with 2022 primarily due to lower gas purchased for resale ($24 million), offset in part by higher revenues from the New York gas rate plan ($5 million). Gas purchased for resale decreased $24 million in 2023 compared with 2022 due to lower purchased volumes ($15 million) and unit cost ($9 million). Other operations and maintenance expenses increased $7 million in 2023 compared with 2022 primarily due to higher administrative and general expenses ($2 million), higher pension costs, reflecting reconciliation to the rate plan level ($2 million) and higher uncollectible expenses ($1 million). Depreciation and amortization increased $3 million in 2023 compared with 2022 primarily due to higher gas utility plant balances. --- ## No Match in Current: Assets, Liabilities and Equity *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* The Companies' assets, liabilities and equity at December 31, 2023 and 2022 are summarized as follows: CECONYO&RClean Energy Businesses (c)Con Edison TransmissionOther (a)Con Edison (b)(Millions of Dollars)202320222023202220232022202320222023202220232022ASSETSCurrent assets$5,981$5,247$302$332$ - $879$25$4$229$6,510$6,537$12,972Investments6085392220 - - 3652864(4)999841Net plant46,64844,0112,9432,738 - 4,7181717 - (4,718)49,60846,766Other noncurrent assets8,3637,648408421 - 1,62777409(1,217)9,1878,486Total Assets$61,600$57,445$3,675$3,511$ - $7,224$414$314$642$571$66,331$69,065LIABILITIES AND SHAREHOLDERS' EQUITYCurrent liabilities$5,694$6,036$349$409$ - $1,596$5$163$414$3,132$6,462$11,336Noncurrent liabilities15,95015,4511,1461,103 - 338(76)(86)(236)(113)16,78416,693Long-term debt20,81019,0801,1181,068 - 2,292 - - (1)(2,293)21,92720,147Equity19,14616,8781,062931 - 2,998485237465(155)21,15820,889Total Liabilities and Equity$61,600$57,445$3,675$3,511$ - $7,224$414$314$642$571$66,331$69,065 CECONY O&R --- ## No Match in Current: Consolidated Balance Sheet *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* (Millions of Dollars)December 31, 2023December 31, 2022ASSETSCURRENT ASSETSCash and temporary cash investments$1,189$1,282Accounts receivable - customers, net allowance for uncollectible accounts of $360 and $322 in 2023 and 2022, respectively2,4182,192Other receivables, net allowance for uncollectible accounts of $13 and $10 in 2023 and 2022, respectively444164Taxes receivable110Accrued unbilled revenue722702Fuel oil, gas in storage, materials and supplies, at average cost469492Prepayments470264Regulatory assets281305Restricted cash 1 - Revenue decoupling mechanism receivable203164Fair value of derivative assets5259Assets held for sale1637,162Other current assets 124176TOTAL CURRENT ASSETS6,53712,972INVESTMENTS999841UTILITY PLANT, AT ORIGINAL COSTElectric39,07136,819Gas14,31813,378Steam3,0852,935General4,8354,205TOTAL61,30957,337Less: Accumulated depreciation14,15713,069Net47,15244,268Construction work in progress2,4422,484NET UTILITY PLANT49,59446,752NON-UTILITY PLANTNon-utility property, net accumulated depreciation of $24 and $23 in 2023 and 2022, respectively1313Construction work in progress11NET PLANT49,60846,766OTHER NONCURRENT ASSETSGoodwill408408Operating lease right-of-use-asset533568 Regulatory assets4,6073,974Pension and retiree benefits3,2753,269Fair value of derivative assets4885Other deferred charges and noncurrent assets 316182TOTAL OTHER NONCURRENT ASSETS9,1878,486TOTAL ASSETS$66,331$69,065 Accounts receivable - customers, net allowance for uncollectible accounts of $360 and $322 in 2023 and 2022, respectively Other receivables, net allowance for uncollectible accounts of $13 and $10 in 2023 and 2022, respectively Non-utility property, net accumulated depreciation of $24 and $23 in 2023 and 2022, respectively The accompanying notes are an integral part of these financial statements. CON EDISON ANNUAL REPORT 202387 CON EDISON ANNUAL REPORT 202387 CON EDISON ANNUAL REPORT 202387 CON EDISON ANNUAL REPORT 2023 87 --- ## No Match in Current: Consolidated Balance Sheet *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* (Millions of Dollars)December 31, 2023December 31, 2022ASSETSCURRENT ASSETSCash and temporary cash investments$1,189$1,282Accounts receivable - customers, net allowance for uncollectible accounts of $360 and $322 in 2023 and 2022, respectively2,4182,192Other receivables, net allowance for uncollectible accounts of $13 and $10 in 2023 and 2022, respectively444164Taxes receivable110Accrued unbilled revenue722702Fuel oil, gas in storage, materials and supplies, at average cost469492Prepayments470264Regulatory assets281305Restricted cash 1 - Revenue decoupling mechanism receivable203164Fair value of derivative assets5259Assets held for sale1637,162Other current assets 124176TOTAL CURRENT ASSETS6,53712,972INVESTMENTS999841UTILITY PLANT, AT ORIGINAL COSTElectric39,07136,819Gas14,31813,378Steam3,0852,935General4,8354,205TOTAL61,30957,337Less: Accumulated depreciation14,15713,069Net47,15244,268Construction work in progress2,4422,484NET UTILITY PLANT49,59446,752NON-UTILITY PLANTNon-utility property, net accumulated depreciation of $24 and $23 in 2023 and 2022, respectively1313Construction work in progress11NET PLANT49,60846,766OTHER NONCURRENT ASSETSGoodwill408408Operating lease right-of-use-asset533568 Regulatory assets4,6073,974Pension and retiree benefits3,2753,269Fair value of derivative assets4885Other deferred charges and noncurrent assets 316182TOTAL OTHER NONCURRENT ASSETS9,1878,486TOTAL ASSETS$66,331$69,065 Accounts receivable - customers, net allowance for uncollectible accounts of $360 and $322 in 2023 and 2022, respectively Other receivables, net allowance for uncollectible accounts of $13 and $10 in 2023 and 2022, respectively Non-utility property, net accumulated depreciation of $24 and $23 in 2023 and 2022, respectively The accompanying notes are an integral part of these financial statements. CON EDISON ANNUAL REPORT 202387 CON EDISON ANNUAL REPORT 202387 CON EDISON ANNUAL REPORT 202387 CON EDISON ANNUAL REPORT 2023 87 --- ## No Match in Current: Income/(Loss) *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* Common stock dividends ($3.10 per share) Common stock dividends ($3.16 per share) Common stock dividends ($3.24 per share) The accompanying notes are an integral part of these financial statements. CON EDISON ANNUAL REPORT 202389 CON EDISON ANNUAL REPORT 202389 CON EDISON ANNUAL REPORT 202389 CON EDISON ANNUAL REPORT 2023 89 --- ## No Match in Current: December 31, *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* The accompanying notes are an integral part of these financial statements. 90CON EDISON ANNUAL REPORT 2023 90CON EDISON ANNUAL REPORT 2023 90CON EDISON ANNUAL REPORT 2023 90 CON EDISON ANNUAL REPORT 2023 --- ## No Match in Current: LONG-TERM DEBT (Millions of Dollars) *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* CON EDISON ANNUAL REPORT 202391 CON EDISON ANNUAL REPORT 202391 CON EDISON ANNUAL REPORT 202391 CON EDISON ANNUAL REPORT 2023 91 20544.6252014C75075020564.302016C50050020574.002017C35035020584.502018B70070020593.702019B60060020603.002020C60060020613.602021B750750TOTAL DEBENTURES$21,950$20,550 --- ## No Match in Current: Consolidated Statement of Capitalization *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* Shares outstandingDecember 31,At December 31,(In Millions)2023202220232022TOTAL EQUITY BEFORE ACCUMULATED OTHER COMPREHENSIVE INCOME 345355$21,136$20,665Pension plan liability adjustments, net of taxes2323Unrealized losses on derivatives qualified as cash flow hedges, less reclassification adjustment for gains/(losses) included in net income and reclassification adjustment for unrealized losses included in regulatory assets, net of taxes (1)(1)TOTAL ACCUMULATED OTHER COMPREHENSIVE INCOME, NET OF TAXES2222Equity21,15820,687Noncontrolling interest - 202TOTAL EQUITY (See Statement of Equity) $21,158$20,889 --- ## No Match in Current: LONG-TERM DEBT (Millions of Dollars) *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* CON EDISON ANNUAL REPORT 202391 CON EDISON ANNUAL REPORT 202391 CON EDISON ANNUAL REPORT 202391 CON EDISON ANNUAL REPORT 2023 91 20544.6252014C75075020564.302016C50050020574.002017C35035020584.502018B70070020593.702019B60060020603.002020C60060020613.602021B750750TOTAL DEBENTURES$21,950$20,550 --- ## No Match in Current: Consolidated Income Statement *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* For the Years Ended December 31,(Millions of Dollars/Except Share Data)202320222021OPERATING REVENUESElectric$10,835$10,522$9,485Gas3,1273,2372,638Steam569593532Non-utility1321,3181,021TOTAL OPERATING REVENUES14,66315,67013,676OPERATING EXPENSESPurchased power2,5412,4791,835Fuel282356229Gas purchased for resale8291,245690Other operations and maintenance3,6063,9053,254Depreciation and amortization2,0312,0562,032Taxes, other than income taxes3,0433,0052,810TOTAL OPERATING EXPENSES12,33213,04610,850Gain on sale of the Clean Energy Businesses865 - - OPERATING INCOME3,1962,6242,826OTHER INCOME (DEDUCTIONS)Investment income (loss)6220(420)Other income83440222Allowance for equity funds used during construction261921Other deductions(92)(115)(161)TOTAL OTHER INCOME (DEDUCTIONS)830326(538)INCOME BEFORE INTEREST AND INCOME TAX EXPENSE4,0262,9502,288INTEREST EXPENSE (INCOME)Interest on long-term debt962987930Other interest expense (income)113(99)(14)Allowance for borrowed funds used during construction(52)(36)(11)NET INTEREST EXPENSE1,023852905INCOME BEFORE INCOME TAX EXPENSE3,0032,0981,383INCOME TAX EXPENSE487498190NET INCOME$2,516$1,600$1,193Loss attributable to non-controlling interest$(3)$(60)$(153)NET INCOME FOR COMMON STOCK$2,519$1,660$1,346Net income per common share - basic$7.25$4.68$3.86Net income per common share - diluted$7.21$4.66$3.85AVERAGE NUMBER OF SHARES OUTSTANDING - BASIC (IN MILLIONS)347.7354.5348.4AVERAGE NUMBER OF SHARES OUTSTANDING - DILUTED (IN MILLIONS)349.3355.8349.4 The accompanying notes are an integral part of these financial statements. 84CON EDISON ANNUAL REPORT 2023 84CON EDISON ANNUAL REPORT 2023 84CON EDISON ANNUAL REPORT 2023 84 CON EDISON ANNUAL REPORT 2023 --- ## No Match in Current: Consolidated Balance Sheet *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* (Millions of Dollars)December 31, 2023December 31, 2022ASSETSCURRENT ASSETSCash and temporary cash investments$1,189$1,282Accounts receivable - customers, net allowance for uncollectible accounts of $360 and $322 in 2023 and 2022, respectively2,4182,192Other receivables, net allowance for uncollectible accounts of $13 and $10 in 2023 and 2022, respectively444164Taxes receivable110Accrued unbilled revenue722702Fuel oil, gas in storage, materials and supplies, at average cost469492Prepayments470264Regulatory assets281305Restricted cash 1 - Revenue decoupling mechanism receivable203164Fair value of derivative assets5259Assets held for sale1637,162Other current assets 124176TOTAL CURRENT ASSETS6,53712,972INVESTMENTS999841UTILITY PLANT, AT ORIGINAL COSTElectric39,07136,819Gas14,31813,378Steam3,0852,935General4,8354,205TOTAL61,30957,337Less: Accumulated depreciation14,15713,069Net47,15244,268Construction work in progress2,4422,484NET UTILITY PLANT49,59446,752NON-UTILITY PLANTNon-utility property, net accumulated depreciation of $24 and $23 in 2023 and 2022, respectively1313Construction work in progress11NET PLANT49,60846,766OTHER NONCURRENT ASSETSGoodwill408408Operating lease right-of-use-asset533568 Regulatory assets4,6073,974Pension and retiree benefits3,2753,269Fair value of derivative assets4885Other deferred charges and noncurrent assets 316182TOTAL OTHER NONCURRENT ASSETS9,1878,486TOTAL ASSETS$66,331$69,065 Accounts receivable - customers, net allowance for uncollectible accounts of $360 and $322 in 2023 and 2022, respectively Other receivables, net allowance for uncollectible accounts of $13 and $10 in 2023 and 2022, respectively Non-utility property, net accumulated depreciation of $24 and $23 in 2023 and 2022, respectively The accompanying notes are an integral part of these financial statements. CON EDISON ANNUAL REPORT 202387 CON EDISON ANNUAL REPORT 202387 CON EDISON ANNUAL REPORT 202387 CON EDISON ANNUAL REPORT 2023 87 --- ## No Match in Current: Income/(Loss) *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* Common stock dividends ($3.10 per share) Common stock dividends ($3.16 per share) Common stock dividends ($3.24 per share) The accompanying notes are an integral part of these financial statements. CON EDISON ANNUAL REPORT 202389 CON EDISON ANNUAL REPORT 202389 CON EDISON ANNUAL REPORT 202389 CON EDISON ANNUAL REPORT 2023 89 --- ## No Match in Current: LONG-TERM DEBT (Millions of Dollars) *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* CON EDISON ANNUAL REPORT 202391 CON EDISON ANNUAL REPORT 202391 CON EDISON ANNUAL REPORT 202391 CON EDISON ANNUAL REPORT 2023 91 20544.6252014C75075020564.302016C50050020574.002017C35035020584.502018B70070020593.702019B60060020603.002020C60060020613.602021B750750TOTAL DEBENTURES$21,950$20,550 --- ## No Match in Current: 2021 Partial Impairment of Investment in Stagecoach Gas Services LLC (Stagecoach) *This section from the 2024 filing does not have a high-confidence textual match in 2025. It may have been removed, merged, or substantially reworded.* In May 2021, a subsidiary of Con Edison Transmission entered into a purchase and sale agreement pursuant to which the subsidiary and its joint venture partner agreed to sell their combined interests in Stagecoach for a total of $1,225 million, of which $629 million was attributed to Con Edison Transmission for its 50 percent interest. As a result of information made available to Stagecoach as part of the sale process, Stagecoach performed impairment tests that resulted in Stagecoach recording impairment charges of $414 million for the year ended December 31, 2021. Accordingly, Con Edison recorded pre-tax impairment losses on its 50 percent interest in Stagecoach of $212 million ($147 million after-tax), including working capital and transaction cost adjustments, within "Investment income/(loss)" on Con Edison's consolidated income statement for the year ended December 31, 2021. Stagecoach's impairment charges and information obtained from the sales process constituted triggering events for Con Edison's investment in Stagecoach during 2021. Con Edison evaluated the carrying value of its investment in Stagecoach for other-than-temporary declines in value using income and market-based approaches. Con Edison determined that the carrying value of its investment in Stagecoach of $667 million and $630 million as of March 31, 2021 and June 30, 2021, respectively, was not impaired, and that the carrying value at June 30, 2021 reflected the final sales price received, including closing adjustments. Con Edison Transmission had no remaining investment in Stagecoach as of December 31, 2021. --- ## Modified: Cybersecurity Risk Management **Key changes:** - Reworded sentence: "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." - Reworded sentence: "The Companies employ several processes to manage their cybersecurity risks, including, but not limited to, the following: •Incident Detection and Prevention: The Companies deploy safeguards designed to protect their operational and information systems, the personal information of their customers and employees and other critical information from cybersecurity threats." - Added sentence: "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." - Added sentence: "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 sentence: "A cybersecurity risk assessment is performed by the Companies' Information Technology department to assess the controls of high-risk third parties that, among other things, possess the Companies' sensitive information and the personal information of their customers and employees." **Prior (2024):** 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. 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. In accordance with the Companies' ERM program, management has established a multidisciplinary cybersecurity team including personnel from the technology, operations, legal, compliance, and risk management departments that identifies, assesses and remediates cybersecurity risks. 44CON EDISON ANNUAL REPORT 2023 44CON EDISON ANNUAL REPORT 2023 44CON EDISON ANNUAL REPORT 2023 44 CON EDISON ANNUAL REPORT 2023 The Companies employ several processes to manage their cybersecurity risks, including, but not limited to, the following: •Incident Detection and Prevention: The Companies deploy safeguards designed to protect their operational and information systems, the personal information of their customers and employees and other critical information from cybersecurity threats. 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. 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 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. A cybersecurity risk assessment is performed by the Companies' Information Technology department to assess the controls of high-risk third parties that, among other things, possess the Companies' 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. •Training and Compliance: The Companies train employees regularly on potential cybersecurity threats; perform drills; monitor network and computing systems; collaborate with government and industry partners on threat mitigation; and also 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. The Companies have experienced cybersecurity incidents and attacks in the past and expect to experience them in the future. None of the incidents or attacks that the Companies experienced have had a material impact on the Companies' business strategy, results of operations or financial condition. Although the Companies have established processes to assess, identify and manage cybersecurity risks, such processes do not provide absolute assurance against a cybersecurity attack that could materially impact the Companies. In the event of a cybersecurity incident or attack that the Companies were unable to defend against or mitigate, the Companies' business strategy, results of operations or financial condition are reasonably likely to be materially affected. Such an incident could disrupt the Companies' or their customers' operations, cause damage to the Companies' properties, financial and other information systems and network infrastructure and could result in the theft of the Companies', their employees' or customers' information. See "A Cyber Attack Could Adversely Affect the Companies" in Item 1A. **Current (2025):** 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. 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. In accordance with the Companies' ERM program, management has established a multidisciplinary cybersecurity team including personnel from the technology, operations, legal, compliance, and risk management departments that identifies, assesses and remediates cybersecurity risks. The Companies employ several processes to manage their cybersecurity risks, including, but not limited to, the following: •Incident Detection and Prevention: The Companies deploy safeguards designed to protect their operational and information systems, the personal information of their customers and employees and other critical information from cybersecurity threats. 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. 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 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. A cybersecurity risk assessment is performed by the Companies' Information Technology department to assess the controls of high-risk third parties that, among other things, possess the Companies' sensitive information and the personal information of their customers and employees. 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. 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. A cybersecurity risk assessment is performed by the Companies' Information Technology department to assess the controls of high-risk third parties that, among other things, possess the Companies' sensitive information and the personal information of their customers and employees. 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. CON EDISON ANNUAL REPORT 202449 CON EDISON ANNUAL REPORT 202449 CON EDISON ANNUAL REPORT 202449 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. The Companies have experienced cybersecurity incidents and attacks in the past and expect to experience them in the future. The Companies have not experienced any cybersecurity incidents in the last three years that have materially affected the business strategy, results of operations, or financial condition of the Companies. Although the Companies have established processes to assess, identify and manage cybersecurity risks, such processes do not provide absolute assurance against a cybersecurity attack that could materially impact the Companies. In the event of a significant cybersecurity incident or attack, the Companies' business strategy, results of operations or financial condition could be materially affected. Such an incident could materially disrupt the Companies' or their customers' operations, cause damage to the Companies' properties, financial and other information systems and network infrastructure and could result in the theft of the Companies', their employees' or customers' information. See "A Cyber Attack Could Adversely Affect the Companies" in Item 1A. --- ## Modified: Operations Risks: **Key changes:** - Reworded sentence: "Natural disasters or impacts of climate change, such as sea level rise, coastal storm surge, inland flooding from intense rainfall, hurricane-strength winds and extreme heat or cold could impact or damage facilities or result in large-scale outages and the Utilities may experience more severe consequences by continuing or resuming operations during and after such events." - Reworded sentence: "Cyber attacks may include hacking, viruses, malware, denial of service attacks, ransomware, exploited vulnerabilities or other security incidents, including loss of data and communications and business disruption." - Reworded sentence: "In the event of a significant cyber incident or attack, the Companies could have their operations and the operations of their customers and others materially disrupted." - Removed sentence: "In October 2023, CECONY and O&R replaced their separate existing customer billing and information systems with a single new customer billing and information system to further automate the processes by which the Utilities bill their customers and enhance payment, credit and collections activities." - Removed sentence: "Failures in successfully implementing the new customer billing and information system could adversely affect the Utilities' billing and revenue collection processes and cash flow and could result in higher costs." **Prior (2024):** The Failure Of, Or Damage To, The Companies' Facilities Could Adversely Affect The Companies. 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. A failure of, or damage to, these facilities, or an error in the operation or maintenance of these facilities, could result in bodily injury or death, property damage, the release of hazardous substances or extended service interruptions. Impacts of climate change, such as sea level rise, coastal storm surge, inland flooding from intense rainfall, hurricane-strength winds and extreme heat or cold could impact or damage facilities or result in large-scale outages and the Utilities may experience more severe consequences from attempting to operate during and after such events. The Utilities' response to such events may be perceived to be below customer expectations. The Utilities' successful implementation of their maintenance programs reduces, but does not fully protect against, damage to their facilities for which they will be held responsible and which may hinder their restoration efforts. The Utilities could be required to pay substantial amounts that may not be covered by the Utilities' insurance policies to repair or replace their facilities, compensate others for injury or death or other damage and settle any proceedings initiated by state utility regulators or other regulatory agencies. The occurrence of such events could also adversely affect the cost and availability of insurance. Changes to laws, regulations or judicial doctrines could further expand the Utilities' liability for service interruptions. See "Utility Regulation - State Utility Regulation" and "Environmental Matters - Climate Change" in Item 1. A Cyber Attack Could Adversely Affect The Companies. The Companies and other operators of critical energy infrastructure and energy market participants face a heightened risk of cyber attack and the Companies' businesses require the continued operation of information systems and network infrastructure. See Item 1 for a description of the businesses of the Utilities and Con Edison Transmission. Cyber attacks may include hacking, viruses, malware, denial of service attacks, ransomware, exploited vulnerabilities or other security breaches, including loss of data and communications. Cyber threats in general, and in particular to critical infrastructure, are increasing in sophistication, magnitude and frequency and the techniques used in cyberattacks change rapidly, including from emerging technologies, such as artificial intelligence. Interconnectivity with customers, independent system operators, energy traders and other energy market participants, suppliers, contractors and others also exposes the Companies' information systems and network infrastructure to an increased risk of cyber incidents, including attacks. Such interconnectivity increases the risk that a cyber incident or attack on the Companies could affect others and that a cyber incident or attack on others could affect the Companies. In the event of a cyber incident or attack that the Companies were unable to defend against or mitigate, the Companies could have their operations and the operations of their customers and others disrupted. The Companies could also have their financial and other information systems and network infrastructure impaired, property damaged, and customer and employee information stolen; experience substantial loss of revenues, response costs and other financial loss; and be subject to increased regulation, litigation, penalties and damage to their reputation. In October 2023, threat actors exploited a vulnerability in Citrix NetScaler that was remediated and reported to the relevant regulatory authorities by the Companies. Also during 2023, the Companies experienced increases in malicious attempts to disrupt traffic to their websites and in attacks against third-party vendors employed by the Companies. The Companies have experienced cyber incidents and attacks in the past and expect to experience them in the future. Although none of these incidents has had a material impact on the Companies, the scope and impact of any future incident cannot be predicted. In the event of a cybersecurity incident or attack that the Companies were unable to defend against or mitigate, the Companies' business strategy, results of operations or financial condition are reasonably likely to be materially affected. 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. In October 2023, CECONY and O&R replaced their separate existing customer billing and information systems with a single new customer billing and information system to further automate the processes by which the Utilities bill their customers and enhance payment, credit and collections activities. Failures in successfully implementing the new customer billing and information system could adversely affect the Utilities' billing and revenue collection processes and cash flow and could result in higher costs. 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 of the Companies' or its contractors' business processes or information and communication systems or the failure by the Companies' employees or contractors to follow procedures, their unsafe actions, errors or intentional misconduct, cyber incidents or attacks, or work stoppages could adversely affect the Companies' operations and liquidity and could result in substantial liability, higher costs, increased regulatory requirements and substantial penalties. The violation of laws or regulations by employees or contractors for personal gain may result from contract and procurement fraud, extortion, bribe acceptance, fraudulent related-party transactions and serious breaches of corporate policy or standards of business conduct. Competition for 42CON EDISON ANNUAL REPORT 2023 42CON EDISON ANNUAL REPORT 2023 42CON EDISON ANNUAL REPORT 2023 42 CON EDISON ANNUAL REPORT 2023 employee and contractor talent may result in operating challenges and increased costs to attract and retain talent. If the Companies are unable to successfully attract and retain an appropriately qualified workforce, their results of operations, financial position and cash flows could be negatively affected. See "Human Capital" in Item 1. **Current (2025):** The Failure Of, Or Damage To, The Companies' Facilities Could Adversely Affect The Companies. 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. A failure of, or damage to, these facilities, or an error in the operation or maintenance of these facilities, could result in bodily injury or death, property damage, the release of hazardous substances or extended service interruptions. Natural disasters or impacts of climate change, such as sea level rise, coastal storm surge, inland flooding from intense rainfall, hurricane-strength winds and extreme heat or cold could impact or damage facilities or result in large-scale outages and the Utilities may experience more severe consequences by continuing or resuming operations during and after such events. The Utilities' response to such events may be perceived to be below customer expectations. The Utilities' successful implementation of their maintenance programs reduces, but does not fully protect against, damage to their facilities for which they will be held responsible and which may hinder their restoration efforts. The Utilities could be required to pay substantial amounts that may not be covered by the Utilities' insurance policies to repair or replace their facilities, compensate others for injury or death or other damage and settle any proceedings initiated by state utility regulators or other regulatory agencies. The occurrence of such events could also adversely affect the cost and availability of insurance. Changes to laws, regulations or judicial doctrines could further expand the Utilities' liability for service interruptions. See "Utility Regulation - State Utility Regulation" and "Environmental Matters - Climate Change" in Item 1. A Cyber Attack Could Adversely Affect The Companies. The Companies and other operators of critical energy infrastructure and energy market participants face a heightened risk of cyber attack and the Companies' businesses require the continued operation of information systems and network infrastructure. See Item 1 for a description of the businesses of the Utilities and Con Edison Transmission. Cyber attacks may include hacking, viruses, malware, denial of service attacks, ransomware, exploited vulnerabilities or other security incidents, including loss of data and communications and business disruption. 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. Such adversaries have attacked and threatened to attack energy infrastructure and deploy significant resources and employ sophisticated methods to plan and carry out attacks. Risk of these attacks may escalate during periods of heightened geopolitical tensions. Interconnectivity with customers, independent system operators, energy traders and other energy market participants, suppliers, contractors and others also exposes the Companies' information and operational systems and network infrastructure to an increased risk of cyber incidents, including attacks. Such interconnectivity increases the risk that a cyber incident or attack on the Companies could affect others and that a cyber incident or attack on others could affect the Companies. In the event of a significant cyber incident or attack, the Companies could have their operations and the operations of their customers and others materially disrupted. The Companies could also have their financial and other information systems and network infrastructure impaired or damaged; customer and employee information stolen; experience substantial loss of revenues; incur substantial response costs and other financial losses; be subject to increased regulation, litigation and penalties; and damage to their reputation. The Companies have experienced cyber incidents and attacks in the past (such as threat actors exploiting a vulnerability in the Companies' information technology system, malicious attempts to disrupt traffic to their websites and attacks against third-party vendors used by the Companies) and expect to experience them in the future. Although none of these incidents has had a material impact on the Companies, the scope and impact of any future incident cannot be 46CON EDISON ANNUAL REPORT 2024 46CON EDISON ANNUAL REPORT 2024 46CON EDISON ANNUAL REPORT 2024 46 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. 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. 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 of the Companies' or its contractors' business processes or information and communication systems or the failure by the Companies' employees or contractors to follow procedures, their unsafe actions, errors or intentional misconduct, cyber incidents or attacks, or work stoppages could adversely affect the Companies' operations and liquidity and could result in substantial liability, higher costs, increased regulatory requirements and substantial penalties. The violation of laws or regulations by employees or contractors for personal gain may result from contract and procurement fraud, extortion, bribe acceptance, fraudulent related-party transactions and serious breaches of corporate policy or standards of business conduct. Competition for employee and contractor talent may result in operating challenges and increased costs to attract and retain talent. If the Companies are unable to successfully attract and retain an appropriately qualified workforce, their results of operations, financial position and cash flows could be negatively affected. See "Human Capital" in Item 1. --- ## Modified: Accounting for Pensions and Other Postretirement Benefits **Key changes:** - Reworded sentence: "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." - Reworded sentence: "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." - Reworded sentence: "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 202477 CON EDISON ANNUAL REPORT 202477 CON EDISON ANNUAL REPORT 202477 77 Actuarial AssumptionChange inAssumptionPensionOtherPostretirementBenefitsTotal (Millions of Dollars)Increase in accounting cost:Discount rateCon Edison(0.25)%$34$2$36CECONY(0.25)%$32$1$33Expected return on plan assetsCon Edison(0.25)%$41$3$44CECONY(0.25)%$40$2$42Future compensation increasesCon Edison0.50 %$27$ - $27CECONY0.50 %$27$ - $27Health care trend rateCon Edison1.00 %$ - $13$13CECONY1.00 %$ - $11$11Increase in projected benefit obligation:Discount rateCon Edison(0.25)%$356$22$378CECONY(0.25)%$339$18$357Future compensation increasesCon Edison0.50 %$128$ - $128CECONY0.50 %$125$ - $125Health care trend rateCon Edison1.00 %$ - $72$72CECONY1.00 %$ - $62$62 Future compensation increases Future compensation increases 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." - Reworded sentence: "The Companies were not required to make cash contributions to the pension plan in 2024 under funding regulations and tax laws." **Prior (2024):** The Utilities provide pensions and other postretirement benefits to substantially all of their employees and retirees. Con Edison Transmission also provides such benefits to transferred employees who previously worked for the Utilities. The Companies account for these benefits in accordance with the accounting rules for retirement benefits. In addition, the Utilities apply the accounting rules for regulated operations to account for the regulatory treatment of these obligations (which, as described in Note B to the financial statements in Item 8, reconciles the amounts reflected in rates for the costs of the benefit to the costs actually incurred). In applying these accounting policies, the Companies have made critical estimates related to actuarial assumptions, including assumptions of expected returns on plan assets, discount rates, health care cost trends and future compensation. 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 2023, 2022 and 2021. The discount rate for determining the present value of future period benefit payments is determined using a model to match the durations of Aa rated (by either Moody's or S&P) corporate bonds with the projected stream of benefit payments. In determining the health care cost trend rate, the Companies review actual recent cost trends and projected future trends. The cost of pension and other postretirement benefits in future periods will depend on actual returns on plan assets, assumptions for future periods, contributions and benefit experience. Con Edison's and CECONY's current estimates for 2024 are increases, compared with 2023, in their pension and other postretirement benefits costs of $181 million and $168 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. The following table illustrates the effect on 2024 pension and other postretirement costs of changing the critical actuarial assumptions, while holding all other actuarial assumptions constant: 74CON EDISON ANNUAL REPORT 2023 74CON EDISON ANNUAL REPORT 2023 74CON EDISON ANNUAL REPORT 2023 74 CON EDISON ANNUAL REPORT 2023 Actuarial AssumptionChange inAssumptionPensionOtherPostretirementBenefitsTotal (Millions of Dollars)Increase in accounting cost:Discount rateCon Edison(0.25)%$37$2$39CECONY(0.25)%$36$2$38Expected return on plan assetsCon Edison(0.25)%$42$3$45CECONY(0.25)%$40$2$42Future compensation increasesCon Edison0.50 %$29$ - $29CECONY0.50 %$28$ - $28Health care trend rateCon Edison1.00 %$ - $10$10CECONY1.00 %$ - $8$8Increase in projected benefit obligation:Discount rateCon Edison(0.25)%$396$25$421CECONY(0.25)%$377$21$398Future compensation increasesCon Edison0.50 %$138$ - $138CECONY0.50 %$135$ - $135Health care trend rateCon Edison1.00 %$ - $62$62CECONY1.00 %$ - $49$49 Future compensation increases Future compensation increases A 5 percentage point variation in the actual annual return in 2024, 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 $27 million and $25 million, respectively, in 2025. Pension benefits are provided through a pension plan maintained by Con Edison to which CECONY, O&R and Con Edison Transmission may make contributions for their participating employees. Pension accounting by the Utilities includes an allocation of plan assets. 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 2023 under funding regulations and tax laws. However, CECONY and O&R made discretionary contributions to the pension plan in 2023 of $18 million and $3 million, respectively. In 2024, CECONY and O&R expect to make contributions to the pension plan of $9 million and $2 million, respectively. See "Expected Contributions" in Notes E and F to the financial statements in Item 8. **Current (2025):** The Utilities provide pensions and other postretirement benefits to substantially all of their employees and retirees. Con Edison Transmission also provides such benefits to transferred employees who previously worked for the Utilities. The Companies account for these benefits in accordance with the accounting rules for retirement benefits. In addition, the Utilities apply the accounting rules for regulated operations to account for the regulatory treatment of these obligations (which, as described in Note B to the financial statements in Item 8, reconciles the amounts reflected in rates for the costs of the benefit to the costs actually incurred). In applying these accounting policies, the Companies have made critical estimates related to actuarial assumptions, including assumptions of expected returns on plan assets, discount rates, health care cost trends and future compensation. 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. The discount rate for determining the present value of future period benefit payments is determined using a model to match the durations of Aa rated (by either Moody's or S&P) corporate bonds with the projected stream of benefit payments. In determining the health care cost trend rate, the Companies review actual recent cost trends and projected future trends. The cost of pension and other postretirement benefits in future periods will depend on actual returns on plan assets, assumptions for future periods, contributions and benefit experience. 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. 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 202477 CON EDISON ANNUAL REPORT 202477 CON EDISON ANNUAL REPORT 202477 77 Actuarial AssumptionChange inAssumptionPensionOtherPostretirementBenefitsTotal (Millions of Dollars)Increase in accounting cost:Discount rateCon Edison(0.25)%$34$2$36CECONY(0.25)%$32$1$33Expected return on plan assetsCon Edison(0.25)%$41$3$44CECONY(0.25)%$40$2$42Future compensation increasesCon Edison0.50 %$27$ - $27CECONY0.50 %$27$ - $27Health care trend rateCon Edison1.00 %$ - $13$13CECONY1.00 %$ - $11$11Increase in projected benefit obligation:Discount rateCon Edison(0.25)%$356$22$378CECONY(0.25)%$339$18$357Future compensation increasesCon Edison0.50 %$128$ - $128CECONY0.50 %$125$ - $125Health care trend rateCon Edison1.00 %$ - $72$72CECONY1.00 %$ - $62$62 Future compensation increases Future compensation increases 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. Pension benefits are provided through a pension plan maintained by Con Edison to which CECONY, O&R and Con Edison Transmission may make contributions for their participating employees. Pension accounting by the Utilities includes an allocation of plan assets. 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. 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. --- ## Modified: Role of Management in Cybersecurity Risk Management **Key changes:** - Reworded sentence: "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." - Reworded sentence: "The executive and senior officer team is led by the Senior Vice President and Chief Information Officer, a senior global technology and operations leader with over 30 years of experience in the technology field and who is responsible for the Companies' information technology and corporate security departments." - Reworded sentence: "The privacy compliance team is led by the Chief Privacy Officer, a professional with over 18 years of experience in data privacy risk and compliance and who is a Certified Information Privacy Professional and a Certified Information Privacy Manager and is designated as a Fellow in Privacy." **Prior (2024):** The Companies have established a cybersecurity team that manages the Companies' cybersecurity risk. The cybersecurity team is led by the Chief Information Security Officer, a utility industry professional with over 20 years of experience in information technology, reliability and cybersecurity. The Chief Information Security Officer also leads collaborative efforts between the government and utility sector partners. The cybersecurity team reports to a multidisciplinary team of executives and senior officers including personnel from the technology and operations departments who are responsible for the review and approval of changes in cybersecurity risk assessment and have oversight of risk mitigation and monitoring strategies. The executive and senior officer teams are led by the Vice President, IT Engineering and Operations, an executive with over 25 years of experience in the utility field across various roles in the Information Technology department and who is accountable for the Companies' information technology assets and the Senior Vice President, Corporate Shared Services, a senior executive with over 30 years of experience in the utility field and who is responsible for shared services functions including the information technology department. The cybersecurity team's processes to protect the personal information of the Companies' customers and employees are supported by a privacy compliance team. The privacy compliance team is led by the Chief Privacy Officer, a professional with over 18 years of experience in data privacy risk and compliance and who is a Certified Information Privacy Professional and a Certified Information Privacy Manager and is designated as a Fellow in CON EDISON ANNUAL REPORT 202345 CON EDISON ANNUAL REPORT 202345 CON EDISON ANNUAL REPORT 202345 CON EDISON ANNUAL REPORT 2023 45 Privacy. 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 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. **Current (2025):** 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 reports to a multidisciplinary team of executives and senior officers including personnel from the technology and operations departments who are responsible for the review and approval of changes in cybersecurity risk assessment and have oversight of risk mitigation and monitoring strategies. The executive and senior officer team is led by the Senior Vice President and Chief Information Officer, a senior global technology and operations leader with over 30 years of experience in the technology field and who is responsible for the Companies' information technology and corporate security departments. The cybersecurity team's processes to protect the personal information of the Companies' customers and employees are supported by a privacy compliance team. The privacy compliance team is led by the Chief Privacy Officer, a professional with over 18 years of experience in data privacy risk and compliance and who is a Certified Information Privacy Professional and a Certified Information Privacy Manager and is designated as a Fellow in Privacy. 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 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. --- ## Modified: Allowance for Uncollectible Accounts **Key changes:** - Reworded sentence: "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." **Prior (2024):** The Companies develop expected loss estimates using past events data and consider current conditions and future reasonable and supportable forecasts. For the Utilities' customer accounts receivable allowance for uncollectible accounts, 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 aged customer accounts receivable balances, among other factors; and forecasts about the future include assumptions related to the level of write-offs and recoveries. From January 1, 2020 to December 31, 2023, the historical write-off rate was determined based on an historical weather event with a significant impact to the Companies' service territory. During that period, Con Edison's and CECONY's allowances for uncollectible accounts increased from $70 million and $65 million, respectively to $360 million and $353 million, respectively. See "COVID-19 Regulatory Matters" in Note B and "Allowance for Uncollectible Accounts" in Note N to the financial statements in Item 8. **Current (2025):** The Companies develop expected loss estimates using past events data and consider current conditions and future reasonable and supportable forecasts. 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. From January 1, 2020 to December 31, 2024, the historical write-off rate was determined based, in part, on a historical weather event with a significant impact to the Companies' service territory. During that period, Con Edison's and CECONY's allowances for uncollectible accounts increased from $70 million and $65 million, respectively to $620 million and $605 million, respectively. See "The Companies May Be Adversely Affected By Changes To The Utilities' Rate Plans" in Item 1A, "Aged Accounts Receivable Balances" in Item 7 and "Allowance for Uncollectible Accounts" in Note N to the financial statements in Item 8. --- ## Modified: Non-Utility Plant **Key changes:** - Reworded sentence: "Solar power generating assets and wind power generating assets have useful lives of 35 years and 30 years, respectively." - Reworded sentence: "CON EDISON ANNUAL REPORT 2024109 CON EDISON ANNUAL REPORT 2024109 CON EDISON ANNUAL REPORT 2024109 109" **Prior (2024):** Non-utility plant is stated at original cost. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note W and X. For Con Edison, non-utility plant consisted primarily of the Clean Energy Businesses' renewable electric projects. Property, plant and equipment are stated at cost, less accumulated depreciation and include capitalized interest during construction. Depreciation is computed under the straight-line method over the useful lives of the assets. Solar power generating assets and wind power generating assets have useful lives of 35 years and 30, respectively. For the Utilities, non-utility plant consists of land and conduit for telecommunication use. Depreciation on non-utility plant, other than land, is computed using the straight-line method for financial statement purposes over their estimated useful lives, which is 10 years. 106CON EDISON ANNUAL REPORT 2023 106CON EDISON ANNUAL REPORT 2023 106CON EDISON ANNUAL REPORT 2023 106 CON EDISON ANNUAL REPORT 2023 **Current (2025):** Non-utility plant is stated at original cost. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note W and X. For Con Edison, non-utility plant consisted primarily of the Clean Energy Businesses' renewable electric projects. Property, plant and equipment are stated at cost, less accumulated depreciation and include capitalized interest during construction. Depreciation is computed under the straight-line method over the useful lives of the assets. Solar power generating assets and wind power generating assets have useful lives of 35 years and 30 years, respectively. For the Utilities, non-utility plant consists of land and conduit for telecommunication use. Depreciation on non-utility plant, other than land, is computed using the straight-line method for financial statement purposes over their estimated useful lives, which is 10 years. CON EDISON ANNUAL REPORT 2024109 CON EDISON ANNUAL REPORT 2024109 CON EDISON ANNUAL REPORT 2024109 109 --- ## Modified: Information about our Executive Officers **Key changes:** - Reworded sentence: "The following table sets forth certain information about the executive officers of Con Edison as of February 20, 2025." - Reworded sentence: "Cawley601/22 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 CECONY12/20 to 12/21 - President and Chief Executive Officer and Director of Con Edison and Chief Executive Officer and Trustee of CECONY1/18 to 12/20 - President of CECONYKirkland Andrews577/24 to present - Senior Vice President and Chief Financial Officer of Con Edison and CECONY2/21 to 6/24 - Executive Vice President and Chief Financial Officer of Evergy Inc9/11 to 1/21 - Executive Vice President and Chief Financial Officer of NRG Energy, Inc." - Reworded sentence: "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)." - Reworded sentence: "The 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)." - Reworded sentence: "Item 6: [Reserved] 54CON EDISON ANNUAL REPORT 2024 54CON EDISON ANNUAL REPORT 2024 54CON EDISON ANNUAL REPORT 2024 54 Item 7: Management's Discussion and Analysis of Financial Condition and Results of Operations This combined management's discussion and analysis of financial condition and results of operations (MD&A) relates to the consolidated financial statements included in this report of two separate registrants: Con Edison and CECONY, and should be read in conjunction with the financial statements and the notes thereto." **Prior (2024):** The following table sets forth certain information about the executive officers of Con Edison as of February 15, 2024. The term of office of each officer, is until the next election of directors (trustees) of their company and until his or her successor is chosen and qualifies. Officers are subject to removal at any time by the board of directors (trustees) of their company. NameAgeOffices and Positions During Past Five YearsTimothy P. Cawley591/22 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 CECONY12/20 to 12/21 - President and Chief Executive Officer and Director of Con Edison and Chief Executive Officer and Trustee of CECONY1/18 to 12/20 - President of CECONYRobert Hoglund629/05 to present - Senior Vice President and Chief Financial Officer of Con Edison and CECONYMatthew Ketschke521/21 to present - President of CECONY11/17 to 12/20 - Senior Vice President - Customer Energy SolutionsRobert Sanchez5812/17 to present - President and Chief Executive Officer of O&RStuart Nachmias591/20 to present - President and Chief Executive Officer of Con Edison Transmission05/08 to 12/19 - Vice President of Energy Policy and Regulatory Affairs of CECONYDeneen L. Donnley591/20 to present - Senior Vice President and General Counsel of Con Edison and CECONY10/19 to 12/19 - Senior Vice President of Con Edison and CECONY9/15 to 10/19 - Executive Vice President, Chief Legal Officer and Corporate Secretary - USAA Jennifer Hensley459/22 to present - Senior Vice President - Corporate Affairs of CECONY7/22 to 9/22 - Senior Vice President of CECONY1/21 to 7/22 - Vice President, Head of Government Relations - LYFT9/19 to 1/21 - Senior Director, Public Policy - LYFT11/17 to 9/19 - President, Link - INTERSECTION Co.Mary E. Kelly5511/17 to present - Senior Vice President - Corporate Shared Services of CECONYNancy Shannon566/22 to present - Senior Vice President - Utility Shared Services of CECONY6/18 to 5/22 - Vice President - Human ResourcesJoseph Miller611/21 to present - Vice President and Controller of Con Edison and CECONY1/21 to present - Chief Financial Officer and Controller of O&R8/06 to 12/20 - Assistant Controller of Corporate Accounting of CECONY 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 1/20 to present - President and Chief Executive Officer of Con Edison Transmission CON EDISON ANNUAL REPORT 202347 CON EDISON ANNUAL REPORT 202347 CON EDISON ANNUAL REPORT 202347 CON EDISON ANNUAL REPORT 2023 47 Part II 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, 2024, there were 35,988 holders of record of Con Edison's Common Shares. Con Edison paid quarterly dividends of 79 cents per Common Share in 2022 and quarterly dividends of 81 cents per Common Share in 2023. On January 18, 2024, Con Edison declared a quarterly dividend of 83 cents per Common Share that is payable on March 15, 2024. Con Edison expects to pay dividends to its shareholders primarily from dividends and other distributions it receives from its subsidiaries. The payment of future dividends is subject to approval and declaration by Con Edison's Board of Directors and will depend on a variety of factors including business, financial and regulatory considerations. 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 2023, the market price of Con Edison's Common Shares decreased by 5.72 percent (from $95.31 at year-end 2022 to $90.97 at year-end 2023). By comparison, the S&P 500 Index increased 23.91 percent and the S&P 500 Utilities Index decreased 11.06 percent. The total return to Con Edison's common shareholders during 2023, including both price appreciation and investment of dividends, was (1.12) percent. By comparison, the total returns for the S&P 500 Index and the S&P 500 Utilities Index were 26.26 percent and (7.08) percent, respectively. For the five-year period 2019 through 2023 inclusive, Con Edison's shareholders' total return was 43.08 percent, compared with total returns for the S&P 500 Index and the S&P 500 Utilities Index of 107.04 percent and 41.05 percent, respectively. Years Ended December 31, Company / Index201820192020202120222023Consolidated Edison, Inc.100.00122.54101.72125.07144.65143.03S&P 500 Index100.00131.49155.68200.37164.08207.21S&P Utilities100.00126.35126.96149.39151.73140.99 Based on $100 invested at December 31, 2018, reinvestment of all dividends in equivalent shares of stock and market price changes on all such shares. 48CON EDISON ANNUAL REPORT 2023 48CON EDISON ANNUAL REPORT 2023 48CON EDISON ANNUAL REPORT 2023 48 CON EDISON ANNUAL REPORT 2023 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. The dividends declared by CECONY in 2022 and 2023 are shown in its Consolidated Statement of Shareholder's Equity included in Item 8 (which information is incorporated herein by reference). For additional information about the payment of dividends by CECONY, and restrictions thereon, see "Dividends" in Note C to the financial statements in Item 8 (which information is incorporated herein by reference). Item 6: [Reserved] CON EDISON ANNUAL REPORT 202349 CON EDISON ANNUAL REPORT 202349 CON EDISON ANNUAL REPORT 202349 CON EDISON ANNUAL REPORT 2023 49 Item 7: Management's Discussion and Analysis of Financial Condition and Results of Operations This combined management's discussion and analysis of financial condition and results of operations relates to the consolidated financial statements included in this report of two separate registrants: Con Edison and CECONY, and should be read in conjunction with the financial statements and the notes thereto. 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. Information in any item of this report referred to in this discussion and analysis is incorporated by reference herein. The use of terms such as "see" or "refer to" shall be deemed to incorporate by reference into this discussion and analysis the information to which reference is made. 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, 2022, filed with the SEC on February 16, 2023, for a discussion of variance drivers for the year ended December 31, 2022, as compared to December 31, 2021. **Current (2025):** The following table sets forth certain information about the executive officers of Con Edison as of February 20, 2025. The term of office of each officer, is until the next election of directors (trustees) of their company and until his or her successor is chosen and qualifies. Officers are subject to removal at any time by the board of directors (trustees) of their company. NameAgeOffices and Positions During Past Five YearsTimothy P. Cawley601/22 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 CECONY12/20 to 12/21 - President and Chief Executive Officer and Director of Con Edison and Chief Executive Officer and Trustee of CECONY1/18 to 12/20 - President of CECONYKirkland Andrews577/24 to present - Senior Vice President and Chief Financial Officer of Con Edison and CECONY2/21 to 6/24 - Executive Vice President and Chief Financial Officer of Evergy Inc9/11 to 1/21 - Executive Vice President and Chief Financial Officer of NRG Energy, Inc. Matthew Ketschke531/21 to present - President of CECONY11/17 to 12/20 - Senior Vice President - Customer Energy SolutionsMichele O'Connell494/24 to present - President and Chief Executive Officer of O&RRobert Sanchez594/24 to present - President, Shared Services of CECONY12/17 to 4/24 - President and Chief Executive Officer of O&RStuart Nachmias601/20 to present - President and Chief Executive Officer of Con Edison TransmissionDeneen L. Donnley601/20 to present - Senior Vice President and General Counsel of Con Edison and CECONYJennifer Hensley469/22 to present - Senior Vice President - Corporate Affairs of CECONY7/22 to 9/22 - Senior Vice President of CECONY1/21 to 7/22 - Vice President, Head of Government Relations - Lyft9/19 to 1/21 - Senior Director, Public Policy - LyftJoseph Miller621/21 to present - Vice President and Controller of Con Edison and CECONY1/21 to present - Chief Financial Officer and Controller of O&R8/06 to 12/20 - Assistant Controller of Corporate Accounting of CECONYKamran Ziaee5812/24 to present - Senior Vice President and Chief Information Officer of Con Edison and CECONY08/19 to 11/24 - Senior Vice President, Technology Strategy & Planning - Verizon 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 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. 1/20 to present - President and Chief Executive Officer of Con Edison Transmission 52CON EDISON ANNUAL REPORT 2024 52CON EDISON ANNUAL REPORT 2024 52CON EDISON ANNUAL REPORT 2024 52 Part II 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. 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 January 16, 2025, Con Edison declared a quarterly dividend of 85 cents per Common Share that is payable on March 14, 2025. Con Edison expects to pay dividends to its shareholders primarily from dividends and other distributions it receives from its subsidiaries. The payment of future dividends is subject to approval and declaration by Con Edison's Board of Directors and will depend on a variety of factors including business, financial and regulatory considerations. 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). 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 total returns for the S&P 500 Index and the S&P 500 Utilities Index were 25.00 percent and 23.43 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. Years Ended December 31, Company / Index201920202021202220232024Consolidated Edison, Inc.100.0083.01102.07118.04116.72118.52S&P 500 Index100.00118.40152.39124.79157.59197.02S&P Utilities100.00100.48118.24120.09111.59137.73 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. CON EDISON ANNUAL REPORT 202453 CON EDISON ANNUAL REPORT 202453 CON EDISON ANNUAL REPORT 202453 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. The 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). For additional information about the payment of dividends by CECONY, and restrictions thereon, see "Dividends" in Note C to the financial statements in Item 8 (which information is incorporated herein by reference). Item 6: [Reserved] 54CON EDISON ANNUAL REPORT 2024 54CON EDISON ANNUAL REPORT 2024 54CON EDISON ANNUAL REPORT 2024 54 Item 7: Management's Discussion and Analysis of Financial Condition and Results of Operations This combined management's discussion and analysis of financial condition and results of operations (MD&A) relates to the consolidated financial statements included in this report of two separate registrants: Con Edison and CECONY, and should be read in conjunction with the financial statements and the notes thereto. 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. 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. Information in any item of this report referred to in this discussion and analysis is incorporated by reference herein. The use of terms such as "see" or "refer to" shall be deemed to incorporate by reference into this discussion and analysis the information to which reference is made. --- ## Modified: Notes to the Financial Statements **Key changes:** - Reworded sentence: "Con Edison Transmission, through its subsidiaries, invests in electric transmission projects and manages, through joint ventures, both electric and gas assets while seeking to develop electric transmission projects." - Reworded sentence: "CON EDISON ANNUAL REPORT 2024107 CON EDISON ANNUAL REPORT 2024107 CON EDISON ANNUAL REPORT 2024107 107" **Prior (2024):** General These combined notes accompany and form an integral part of the separate consolidated financial statements of each of the two separate registrants: Consolidated Edison, Inc. and its subsidiaries (Con Edison) and Consolidated Edison Company of New York, Inc. and its subsidiaries (CECONY). CECONY is a subsidiary of Con Edison and as such its financial condition and results of operations and cash flows, that are presented separately in the CECONY consolidated financial statements, are also consolidated, along with those of Orange and Rockland Utilities, Inc. (O&R), Con Edison Transmission, Inc. (together with its subsidiaries, Con Edison Transmission) and its former subsidiary, Con Edison Clean Energy Businesses, Inc. (together with its subsidiaries, the Clean Energy Businesses), in Con Edison's consolidated financial statements. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note W and Note X. The term "Utilities" is used in these notes to refer to CECONY and O&R. As used in these notes, the term "Companies" refers to Con Edison and CECONY and, except as otherwise noted, the information in these combined notes relates to each of the Companies. However, CECONY makes no representation as to information relating to Con Edison or the subsidiaries of Con Edison other than itself. Con Edison has two regulated utility subsidiaries: CECONY and O&R. CECONY provides electric service and gas service in New York City and Westchester County. The company also provides steam service in parts of Manhattan. O&R, along with its regulated utility subsidiary, provides electric service in southeastern New York and northern New Jersey and gas service in southeastern New York. Con Edison Transmission invests in and seeks to develop electric transmission projects through its subsidiary, Consolidated Edison Transmission, LLC, and manages, through joint ventures, investments in gas pipeline and storage facilities through its subsidiary, Con Edison Gas Pipeline and Storage, LLC. See "Investments" in Note A and Note W. 104CON EDISON ANNUAL REPORT 2023 104CON EDISON ANNUAL REPORT 2023 104CON EDISON ANNUAL REPORT 2023 104 CON EDISON ANNUAL REPORT 2023 **Current (2025):** 107 Note A - Summary of Significant Accounting Policies 108 Note B - Regulatory Matters 115 Note C - Capitalization 133 Note D - Short-Term Borrowing 135 Note E - Pension Benefits 136 Note F - Other Postretirement Benefits 141 Note G - Environmental Matters 146 Note H - Material Contingencies 148 Note I - Electricity and Gas Purchase Agreements 149 Note J - Leases 150 Note K - Goodwill 152 Note L - Income Tax 152 Note M - Revenue Recognition 156 Note N - Current Expected Credit Losses 157 Note O - Stock-Based Compensation 158 Note P - Financial Information by Business Segment 162 Note Q - Derivative Instruments and Hedging Activities 165 Note R - Fair Value Measurements 167 Note S - Variable Interest Entities 170 Note T - Asset Retirement Obligations 171 Note U - Related Party Transactions 172 Note V - New Financial Accounting Standards 173 Note W - Dispositions 173 Note X - Held-for-Sale Treatment of the Clean Energy Businesses 175 --- ## Modified: Financial and Market Risks: **Key changes:** - Reworded sentence: "The Utilities estimate that their capital expenditures will exceed $37,200 million over the next five years." - Reworded sentence: "CON EDISON ANNUAL REPORT 202447 CON EDISON ANNUAL REPORT 202447 CON EDISON ANNUAL REPORT 202447 47 A Disruption In The Wholesale Energy Markets, Increased Commodity Costs Or Failure By An Energy Supplier or Customer Could Adversely Affect The Companies." - Reworded sentence: "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." - Removed sentence: "In November 2023, FERC, NERC and other regional entities issued recommendations to prevent a recurrence of the effects of Winter Storm Elliott, including establishing and monitoring cold weather reliability standards for interstate natural gas pipelines." - Removed sentence: "CON EDISON ANNUAL REPORT 202343 CON EDISON ANNUAL REPORT 202343 CON EDISON ANNUAL REPORT 202343 CON EDISON ANNUAL REPORT 2023 43" **Prior (2024):** Con Edison's Ability To Pay Dividends Or Interest Depends On Dividends From Its Subsidiaries. Con Edison's ability to pay dividends on its common shares or interest on its external borrowings depends primarily on the dividends and other distributions it receives from its subsidiaries. The dividends that the Utilities may pay to Con Edison are limited by the NYSPSC to not more than 100 percent of their respective income available for dividends calculated on a two-year rolling average basis, with certain exceptions. See "Dividends" in Note C and Note U to the financial statements in Item 8. 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. See "Capital Requirements and Resources - Capital Resources" in Item 1, "Liquidity and Capital Resources - Cash Flows from Operating Activities" in Item 7, "Rate Plans" and "Other Regulatory Matters" in Note B and Note L to the financial statements in Item 8. The Companies Require Access To Capital Markets To Satisfy Funding Requirements. The Utilities estimate that their construction expenditures will exceed $27,700 million over the next five years. The Utilities use internally-generated funds, equity contributions from Con Edison, if any, and external borrowings to fund construction expenditures. Con Edison expects to finance its capital requirements primarily through internally generated funds, the sale of its common shares or external borrowings. 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. 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. 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. 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. An extreme cold weather event in December 2022 (Winter Storm Elliott) negatively impacted energy infrastructure in the northeastern United States, including the interstate natural gas system. During Winter Storm Elliott, CECONY faced low pressures on the interstate natural gas pipelines that it relies upon to deliver gas to its customers. Although CECONY maintained system pressure, the low pressure could have resulted in unprecedented large-scale gas outages within CECONY's territory. CECONY estimates that, in the worst case, restoring gas service could have taken months in the event of a complete loss of the system. In the event of a large-scale outage, the Utilities could be required to pay substantial amounts to restore service, compensate others for injury or death or other damages and settle any proceedings initiated by regulatory agencies. In November 2023, FERC, NERC and other regional entities issued recommendations to prevent a recurrence of the effects of Winter Storm Elliott, including establishing and monitoring cold weather reliability standards for interstate natural gas pipelines. 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. CON EDISON ANNUAL REPORT 202343 CON EDISON ANNUAL REPORT 202343 CON EDISON ANNUAL REPORT 202343 CON EDISON ANNUAL REPORT 2023 43 **Current (2025):** Con Edison's Ability To Pay Dividends Or Interest Depends On Dividends From Its Subsidiaries. Con Edison's ability to pay dividends on its common shares or interest on its external borrowings depends primarily on the dividends and other distributions it receives from its subsidiaries. The dividends that the Utilities may pay to Con Edison are limited by the NYSPSC to not more than 100 percent of their respective income available for dividends calculated on a two-year rolling average basis, with certain exceptions. See "Dividends" in Note C and Note U to the financial statements in Item 8. 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. See "Capital Requirements and Resources - Capital Resources" in Item 1, "Liquidity and Capital Resources - Cash Flows from Operating Activities" in Item 7, "Rate Plans" and "Other Regulatory Matters" in Note B and Note L to the financial statements in Item 8. The Companies Require Access To Capital Markets To Satisfy Funding Requirements. 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. 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. CON EDISON ANNUAL REPORT 202447 CON EDISON ANNUAL REPORT 202447 CON EDISON ANNUAL REPORT 202447 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. 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. 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, 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. During such extreme cold weather, the Utilities could face supply interruptions or operating issues (e.g., compressor failures, low pressures) on the interstate natural gas pipelines that they rely upon to deliver gas to their customers. Such disruptions to the interstate natural gas system could, in turn, result in unprecedented large-scale gas outages within the Utilities' service territories. In the event of a large-scale outage, the Utilities could be required to pay substantial amounts to restore service, compensate others for injury or death or other damages and settle any proceedings initiated by regulatory agencies. 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. --- ## Modified: Role of Board of Directors and Board of Trustees in Cybersecurity Risk Management **Key changes:** - Reworded sentence: "Con Edison's Board of Directors and CECONY's Board of Trustees (collectively, the Board) and their respective Audit Committees oversee the management of risks from cybersecurity threats, including the policies, processes and practices that management implements to address risks from cybersecurity threats." - Reworded sentence: "50CON EDISON ANNUAL REPORT 2024 50CON EDISON ANNUAL REPORT 2024 50CON EDISON ANNUAL REPORT 2024 50 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)." **Prior (2024):** Con Edison's Board of Directors and CECONY's Board of Trustees (collectively, the Board) and their respective Audit Committees provide oversight of cybersecurity risks. There is a process in place for the Board and the Audit Committee to receive information and ongoing updates from the Senior Vice President, Corporate Shared Services, regarding significant and potentially significant cybersecurity incidents and a range of cybersecurity metrics. The Board receives an annual presentation and report on cybersecurity risks from the Chief Information Security Officer that addresses various topics, such as recent developments, vulnerability assessments and third-party and independent reviews. The Audit Committee also meets annually with the Chief Information Security Officer in executive session, without management present. At each regular Board meeting, the Board reviews a cybersecurity dashboard prepared by the Chief Information Security Officer that includes updates on a range of cybersecurity metrics and topics. The Audit Committee oversees the ERM program and reviews more in-depth cybersecurity matters and risks on a semi-annual basis. Item 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). CECONY For a discussion of CECONY's electric, gas and steam facilities, see "CECONY - Electric Operations - Electric Facilities," "CECONY - Gas Operations - Gas Facilities" and "CECONY - Steam Operations - Steam Facilities" in Item 1 (which information is incorporated herein by reference). O&R For a discussion of O&R's electric and gas facilities, see "O&R - Electric Operations - Electric Facilities" and "O&R - Gas Operations - Gas Facilities" in Item 1 (which information is incorporated herein by reference). **Current (2025):** Con Edison's Board of Directors and CECONY's Board of Trustees (collectively, the Board) and their respective Audit Committees oversee the management of risks from cybersecurity threats, including the policies, processes and practices that management implements to address risks from cybersecurity threats. There is a process in place for the Board and the Audit Committee to receive quarterly updates and information from the Senior Vice President and Chief Information Officer and the Vice President and Chief Information Security Officer, regarding significant and potentially significant cybersecurity incidents and a range of cybersecurity metrics. The Board receives an annual presentation and report on cybersecurity risks from the Senior Vice President and Chief Information Officer and the Vice President and Chief Information Security Officer that addresses various topics, such as recent developments, vulnerability assessments and third-party and independent reviews. 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. The Audit Committee oversees the ERM program and reviews more in-depth cybersecurity matters and risks on a semi-annual basis. Item 2: Properties Con Edison Con Edison has no significant properties other than those of the Utilities. 50CON EDISON ANNUAL REPORT 2024 50CON EDISON ANNUAL REPORT 2024 50CON EDISON ANNUAL REPORT 2024 50 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). CECONY For a discussion of CECONY's electric, gas and steam facilities, see "CECONY - Electric Operations - Electric Facilities," "CECONY - Gas Operations - Gas Facilities" and "CECONY - Steam Operations - Steam Facilities" in Item 1 (which information is incorporated herein by reference). O&R For a discussion of O&R's electric and gas facilities, see "O&R - Electric Operations - Electric Facilities" and "O&R - Gas Operations - Gas Facilities" in Item 1 (which information is incorporated herein by reference). --- ## Modified: Environmental Risks: **Key changes:** - Reworded sentence: "The Companies Are Exposed To Risks From The Environmental Consequences Of Their Operations, Including Increased Costs Related To Climate Change." - Reworded sentence: "In 2023, CECONY and O&R each completed a climate change vulnerability study that evaluated their respective future climate change adaptation strategies and each developed a climate change resilience plan to address projected physical climate risks and outline proposed resilience investments." **Prior (2024):** The Companies Are Exposed To Risks From The Environmental Consequences Of Their Operations. The Companies are exposed to risks relating to climate change and related matters. In 2023, CECONY and O&R each completed a climate change vulnerability study that evaluated their respective future climate change adaptation strategies and each developed a climate change resilience plan to address projected physical climate risks and outline resilience investments. CECONY may be impacted by environmental regulations regarding emissions reductions such as New York's Climate Leadership and Community Protection Act and New York City's Climate Mobilization Act. In addition, the Utilities are responsible for hazardous substances, such as oil, asbestos, PCBs and coal tar, that have been used or produced in the course of the Utilities' operations and are present on properties or in facilities and equipment currently or previously owned by them. The Companies could be adversely affected if a causal relationship between electric and magnetic fields and adverse health effects were to be established. The Companies may also be adversely affected by developments to legal or public policy doctrines regarding cable that contains lead. See "Environmental Matters" in Item 1 and Note G to the financial statements in Item 8. **Current (2025):** The Companies Are Exposed To Risks From The Environmental Consequences Of Their Operations, Including Increased Costs Related To Climate Change. The Companies are exposed to risks relating to climate change and related matters. In 2023, CECONY and O&R each completed a climate change vulnerability study that evaluated their respective future climate change adaptation strategies and each developed a climate change resilience plan to address projected physical climate risks and outline proposed resilience investments. See "Environmental Matters - Climate Change" in Item 1. CECONY may also be impacted by environmental regulations regarding emissions reductions such as New York's CLCPA and New York City's Climate Mobilization Act and compliance with such regulations is expected to require significant capital expenditures. 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. The Utilities are also responsible for hazardous substances, such as oil, asbestos, PCBs and coal tar, that have been used or produced in the course of the Utilities' operations and are present on properties or in facilities and equipment currently or previously owned by them. The Companies could be adversely affected if a causal relationship between electric and magnetic fields and adverse health effects were to be established. The Companies may also be adversely affected by developments to legal or public policy doctrines regarding cable that contains lead. See "Environmental Matters" in Item 1 and Note G to the financial statements in Item 8. --- ## Modified: Taxes, Other Than Income Taxes **Key changes:** - Reworded sentence: "Taxes, other than income taxes increased $10 million in 2024 compared with 2023 primarily due to an increase in the New York State Capital Tax ($10 million)." **Prior (2024):** At $2,946 million, taxes other than income taxes remain one of CECONY's largest operating expenses. The principal components of, and variations in, taxes other than income taxes were: For the Years Ended December 31,(Millions of Dollars)20232022VariationProperty taxes$2,503$2,318$185State and local taxes related to revenue receipts409411(2)Payroll taxes77707Other taxes(43)88(131)Total$2,946(a)$2,887(a)$59 (a)Including sales tax on customers' bills, total taxes other than income taxes in 2023 and 2022 were $3,652 million and $3,548 million, respectively. **Current (2025):** At $3,173 million, taxes other than income taxes remain one of CECONY's largest operating expenses. The principal components of, and variations in, taxes other than income taxes were: For the Years Ended December 31,(Millions of Dollars)20242023VariationProperty taxes$2,738$2,503$235State and local taxes related to revenue receipts42940920Payroll taxes83776Other 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. (b)Including the deferral of under-collected property taxes in 2024 and 2023 of $83 million and $50 million, respectively. --- ## Modified: Consolidated Statement of Shareholder's Equity **Key changes:** - Reworded sentence: "(In Millions)Common StockAdditionalPaid-InCapitalRetainedEarningsRepurchasedCon EdisonStockCapitalStockExpenseAccumulatedOtherComprehensiveIncome/(Loss)TotalSharesAmountBALANCE AS OF DECEMBER 31, 2021235$589$7,269$9,478$(962)$(62)$ - $16,312Net income1,3901,390Common stock dividend to Con Edison(978)(978)Capital contribution by Con Edison150150Other comprehensive income44BALANCE AS OF DECEMBER 31, 2022235$589$7,419$9,890$(962)$(62)$4$16,878Net income1,6061,606Common stock dividend to Con Edison(1,056)(1,056)Capital contribution by Con Edison1,7201,720Other comprehensive loss(2)(2)BALANCE AS OF DECEMBER 31, 2023235$589$9,139$10,440$(962)$(62)$2$19,146Net income1,7481,748Common stock dividend to Con Edison(1,073)(1,073)Capital contribution by Con Edison130130Other comprehensive income88Stock awards1212BALANCE AS OF DECEMBER 31, 2024235$589$9,281$11,115$(962)$(62)$10$19,971 Additional Paid-In Capital Retained Earnings" **Prior (2024):** (In Millions)Common StockAdditionalPaid-InCapitalRetainedEarningsRepurchasedCon EdisonStockCapitalStockExpenseAccumulatedOtherComprehensiveIncome/(Loss)TotalSharesAmountBALANCE AS OF DECEMBER 31, 2020235$589$6,169$9,122$(962)$(62)$(7)$14,849Net income1,3441,344Common stock dividend to Con Edison(988)(988)Capital contribution by Con Edison1,1001,100Other comprehensive income77BALANCE AS OF DECEMBER 31, 2021235$589$7,269$9,478$(962)$(62)$ - $16,312Net income1,3901,390Common stock dividend to Con Edison(978)(978)Capital contribution by Con Edison150150Other comprehensive income44BALANCE AS OF DECEMBER 31, 2022235$589$7,419$9,890$(962)$(62)$4$16,878Net income1,6061,606Common stock dividend to Con Edison(1,056)(1,056)Capital contribution by Con Edison1,7201,720Other comprehensive loss(2)(2)BALANCE AS OF DECEMBER 31, 2023235$589$9,139$10,440$(962)$(62)$2$19,146 Additional Paid-In Capital Retained Earnings **Current (2025):** (In Millions)Common StockAdditionalPaid-InCapitalRetainedEarningsRepurchasedCon EdisonStockCapitalStockExpenseAccumulatedOtherComprehensiveIncome/(Loss)TotalSharesAmountBALANCE AS OF DECEMBER 31, 2021235$589$7,269$9,478$(962)$(62)$ - $16,312Net income1,3901,390Common stock dividend to Con Edison(978)(978)Capital contribution by Con Edison150150Other comprehensive income44BALANCE AS OF DECEMBER 31, 2022235$589$7,419$9,890$(962)$(62)$4$16,878Net income1,6061,606Common stock dividend to Con Edison(1,056)(1,056)Capital contribution by Con Edison1,7201,720Other comprehensive loss(2)(2)BALANCE AS OF DECEMBER 31, 2023235$589$9,139$10,440$(962)$(62)$2$19,146Net income1,7481,748Common stock dividend to Con Edison(1,073)(1,073)Capital contribution by Con Edison130130Other comprehensive income88Stock awards1212BALANCE AS OF DECEMBER 31, 2024235$589$9,281$11,115$(962)$(62)$10$19,971 Additional Paid-In Capital Retained Earnings --- ## Modified: New York Legislation **Key changes:** - Reworded sentence: "As a result of the sale of all of the stock of the Clean Energy Businesses in 2023, Con Edison's New York State taxable income was higher than $5 million and subject to the higher 7.25 percent rate (9.425 percent with the surcharge rate) on its taxable income for tax year 2023, but is not subject to the higher rate in tax year 2024." **Prior (2024):** 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. The law also reinstated the business capital tax at 0.1875 percent, not to exceed a maximum tax liability of $5 million per taxpayer. New York requires a corporate franchise taxpayer to calculate and pay the highest amount of tax under the three alternative methods: a tax on business income; a tax on business capital; or a fixed dollar minimum. The provisions to increase the corporate franchise tax rate and reinstate a capital tax were scheduled to expire after 2023. In May 2023, New York passed a law that extended the increase in the corporate franchise tax rate from 6.5 percent to 7.25 percent for an additional three years, through tax year 2026 and extended the business capital tax through tax year 2026. New York also passed a law establishing a permanent rate of 30 percent for the metropolitan transportation business tax surcharge. As a result of the sale of the Clean Energy Businesses in 2023, Con Edison has New York State taxable income in excess of $5 million after using its entire New York state net operating loss carryforward, and therefore, the group is subject to the higher 7.25 percent rate (9.425 percent with the surcharge rate) on its taxable income for tax year 2023. As a result of this legislation, CECONY remeasured its deferred tax assets and liabilities that would reverse before 2027 and recorded state deferred income tax expense (net of federal tax benefit) and an increase in accumulated deferred tax liabilities of $10 million for the year ended December 31, 2023, all of which was recorded in the second quarter of 2023. 52CON EDISON ANNUAL REPORT 2023 52CON EDISON ANNUAL REPORT 2023 52CON EDISON ANNUAL REPORT 2023 52 CON EDISON ANNUAL REPORT 2023 **Current (2025):** 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. The law also reinstated the business capital tax at 0.1875 percent, not to exceed a maximum tax liability of $5 million per taxpayer. New York requires a corporate franchise taxpayer to calculate and pay the highest amount of tax under the three alternative methods: a tax on business income; a tax on business capital; or a fixed dollar minimum. The provisions to increase the corporate franchise tax rate and reinstate a capital tax were scheduled to expire after 2023. In May 2023, New York passed a law that extended the increase in the corporate franchise tax rate from 6.5 percent to 7.25 percent for an additional three years, through tax year 2026 and extended the business capital tax through tax year 2026. New York also passed a law establishing a permanent rate of 30 percent for the metropolitan transportation business tax surcharge. As a result of the sale of all of the stock of the Clean Energy Businesses in 2023, Con Edison's New York State taxable income was higher than $5 million and subject to the higher 7.25 percent rate (9.425 percent with the surcharge rate) on its taxable income for tax year 2023, but is not subject to the higher rate in tax year 2024. CON EDISON ANNUAL REPORT 202457 CON EDISON ANNUAL REPORT 202457 CON EDISON ANNUAL REPORT 202457 57 --- ## Modified: Utility Plant **Key changes:** - Reworded sentence: "Rates used for AFUDC include the cost of borrowed funds and a reasonable rate of return on the Utilities' own funds when so used, determined in accordance with regulations of the FERC or the state public utility regulatory authority 108CON EDISON ANNUAL REPORT 2024 108CON EDISON ANNUAL REPORT 2024 108CON EDISON ANNUAL REPORT 2024 108 having jurisdiction." - Reworded sentence: "The AFUDC rates for CECONY were 5.9 percent, 5.9 percent and 5.2 percent for 2024, 2023 and 2022, respectively." - Reworded sentence: "The average depreciation rates for CECONY were 3.6 percent for 2024, 3.6 percent for 2023 and 3.5 percent for 2022." - Reworded sentence: "The capitalized cost of the Companies' utility plant (net of accumulated depreciation) on December 31, 2024 and 2023, was as follows: Con Edison CECONY(Millions of Dollars)2024202320242023ElectricGeneration$577$580$577$580Transmission5,0724,6524,7034,333Distribution25,12924,49123,77023,238General174141174141 Gas (a)12,70312,02311,83011,226Steam2,0061,9902,0061,990General3,2493,1582,9402,860Held for future use7711869110Construction work in progress3,1652,4422,9122,168Net Utility Plant$52,152$49,594$48,981$46,646(a) Primarily distribution." - Reworded sentence: "The accumulated amortization for Con Edison and CECONY was $45 million and $43 million, respectively, at December 31, 2024 and $38 million and $36 million, respectively, at December 31, 2023." **Prior (2024):** Utility plant is stated at original cost. The cost of repairs and maintenance is charged to expense and the cost of betterments is capitalized. The capitalized cost of additions to utility plant includes indirect costs such as engineering, supervision, payroll taxes, pensions, other benefits and an allowance for funds used during construction (AFUDC). The original cost of property is charged to expense over the estimated useful lives of the assets. Upon retirement, the original cost of property is charged to accumulated depreciation. See Note T. Rates used for AFUDC include the cost of borrowed funds and a reasonable rate of return on the Utilities' own funds when so used, determined in accordance with regulations of the FERC or the state public utility regulatory authority CON EDISON ANNUAL REPORT 2023105 CON EDISON ANNUAL REPORT 2023105 CON EDISON ANNUAL REPORT 2023105 CON EDISON ANNUAL REPORT 2023 105 having jurisdiction. The rate is compounded semiannually, and the amounts applicable to borrowed funds are treated as a reduction of interest charges, while the amounts applicable to the Utilities' own funds are credited to other income (deductions). The AFUDC rates for CECONY were 5.9 percent, 5.2 percent and 4.5 percent for 2023, 2022 and 2021, respectively. The AFUDC rates for O&R were 6.2 percent, 5.0 percent and 4.8 percent for 2023, 2022 and 2021, respectively. The Utilities generally compute annual charges for depreciation using the straight-line method for financial statement purposes, with rates based on average service lives and net salvage factors. The average depreciation rates for CECONY were 3.6 percent for 2023 and 3.5 percent for 2022 and 3.5 percent for 2021. The average depreciation rates for O&R were 3.1 percent for 2023, 3.0 percent for 2022 and 3.1 percent for 2021. The estimated lives for utility plant for CECONY range from 5 to 80 years for electric, 5 to 90 years for gas, 5 to 80 years for steam and 5 to 55 years for general plant. For O&R, the estimated lives for utility plant range from 5 to 75 years for electric and gas and 5 to 50 years for general plant. At December 31, 2023 and 2022, the capitalized cost of the Companies' utility plant, net of accumulated depreciation, was as follows: Con Edison CECONY(Millions of Dollars)2023202220232022ElectricGeneration$580$534$580$534Transmission4,6524,2234,3333,916Distribution24,49123,34523,23822,130General141113141113 Gas (a)12,02311,32611,22610,567Steam1,9901,9621,9901,962General3,1582,6482,8602,410Held for future use118117110109Construction work in progress2,4422,4842,1682,268Net Utility Plant$49,594$46,752$46,646$44,009(a) Primarily distribution. General utility plant of Con Edison and CECONY included $65 million and $62 million, respectively, at December 31, 2023, and $72 million and $69 million, respectively, at December 31, 2022, related to a May 2018 acquisition of software licenses. The estimated aggregate annual amortization expense related to the software licenses for Con Edison and CECONY is $7 million. The accumulated amortization for Con Edison and CECONY was $38 million and $36 million, respectively, at December 31, 2023 and $31 million and $29 million, respectively, at December 31, 2022. Under the Utilities' rate plans, the aggregate annual depreciation allowance for the period ended December 31, 2023 was $2,030 million, including $1,925 million under CECONY's electric, gas and steam rate plans that have been approved by the NYSPSC. **Current (2025):** Utility plant is stated at original cost. The cost of repairs and maintenance is charged to expense and the cost of betterments is capitalized. The capitalized cost of additions to utility plant includes indirect costs such as engineering, supervision, payroll taxes, pensions, other benefits and an allowance for funds used during construction (AFUDC). The original cost of property is charged to expense over the estimated useful lives of the assets. Upon retirement, the original cost of property is charged to accumulated depreciation. See Note T. Rates used for AFUDC include the cost of borrowed funds and a reasonable rate of return on the Utilities' own funds when so used, determined in accordance with regulations of the FERC or the state public utility regulatory authority 108CON EDISON ANNUAL REPORT 2024 108CON EDISON ANNUAL REPORT 2024 108CON EDISON ANNUAL REPORT 2024 108 having jurisdiction. The rate is compounded semiannually, and the amounts applicable to borrowed funds are treated as a reduction of interest charges, while the amounts applicable to the Utilities' own funds are credited to other income (deductions). The AFUDC rates for CECONY were 5.9 percent, 5.9 percent and 5.2 percent for 2024, 2023 and 2022, respectively. The AFUDC rates for O&R were 6.0 percent, 6.2 percent and 5.0 percent for 2024, 2023 and 2022, respectively. The Utilities generally compute annual charges for depreciation using the straight-line method for financial statement purposes, with rates based on average service lives and net salvage factors. The average depreciation rates for CECONY were 3.6 percent for 2024, 3.6 percent for 2023 and 3.5 percent for 2022. The average depreciation rates for O&R were 3.3 percent for 2024, 3.1 percent for 2023 and 3.0 percent for 2022. The estimated lives for utility plant for CECONY range from 5 to 80 years for electric, 5 to 80 years for gas, 5 to 55 years for steam and 5 to 50 years for general plant. For O&R, the estimated lives for utility plant range from 5 to 75 years for electric and gas and 5 to 50 years for general plant. The capitalized cost of the Companies' utility plant (net of accumulated depreciation) on December 31, 2024 and 2023, was as follows: Con Edison CECONY(Millions of Dollars)2024202320242023ElectricGeneration$577$580$577$580Transmission5,0724,6524,7034,333Distribution25,12924,49123,77023,238General174141174141 Gas (a)12,70312,02311,83011,226Steam2,0061,9902,0061,990General3,2493,1582,9402,860Held for future use7711869110Construction work in progress3,1652,4422,9122,168Net Utility Plant$52,152$49,594$48,981$46,646(a) Primarily distribution. General utility plant of Con Edison and CECONY included $59 million and $56 million, respectively, at December 31, 2024, and $65 million and $62 million, respectively, at December 31, 2023, related to a May 2018 acquisition of software licenses. The estimated aggregate annual amortization expense related to the software licenses for Con Edison and CECONY is $7 million. The accumulated amortization for Con Edison and CECONY was $45 million and $43 million, respectively, at December 31, 2024 and $38 million and $36 million, respectively, at December 31, 2023. Under the Utilities' rate plans, the aggregate annual depreciation allowance for the period ended December 31, 2024 was $2,228 million, including $2,109 million under CECONY's electric, gas and steam rate plans that have been approved by the NYSPSC. --- ## Modified: Temporary Cash Investments **Key changes:** - Added sentence: "110CON EDISON ANNUAL REPORT 2024 110CON EDISON ANNUAL REPORT 2024 110CON EDISON ANNUAL REPORT 2024 110" **Prior (2024):** Temporary cash investments are short-term, highly-liquid investments that generally have maturities of three months or less at the date of purchase. They are stated at cost, which approximates market. The Companies consider temporary cash investments to be cash equivalents. **Current (2025):** Temporary cash investments are short-term, highly-liquid investments that generally have maturities of three months or less at the date of purchase. They are stated at cost, which approximates market. The Companies consider temporary cash investments to be cash equivalents. 110CON EDISON ANNUAL REPORT 2024 110CON EDISON ANNUAL REPORT 2024 110CON EDISON ANNUAL REPORT 2024 110 --- ## Modified: Cash Flows from Operating Activities **Key changes:** - Reworded sentence: "See "Changes To Tax Laws Could Adversely Affect the Companies" in Item 1A, "Federal Income Tax" in Note A, "Rate Plans" in Note B, "Other Regulatory Matters" in Note B and Note L to the financial statements in Item 8." - Removed sentence: "For Con Edison, 2021 net income also included non-cash losses recognized with respect to impairments of Con Edison Transmission's investments in MVP, Stagecoach and Honeoye." - Reworded sentence: "Net cash flows from operating activities in 2024 for Con Edison were $1,458 million higher than in 2023." **Prior (2024):** The Utilities' cash flows from operating activities primarily reflect their energy sales and deliveries and cost of operations. The volume of energy sales and deliveries is primarily affected by factors external to the Utilities, such as customer demand, weather, market prices for energy and economic conditions. Measures that promote distributed energy resources, such as distributed generation, demand reduction and energy efficiency, also affect the volume of energy sales and deliveries. 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. These temporary differences affect the timing of cash flows, but not net income, as the Companies are required to record deferred tax assets and liabilities at the current corporate tax rate for the temporary differences. For the Utilities, credits to their customers of the net benefits of the TCJA, including the reduction of the corporate tax rate to 21 percent, decrease cash flows from operating activities. Pursuant to their rate plans, the Utilities also recover from customers the amount of property taxes they will pay. The payment of property taxes by the Utilities affects the timing of cash flows and increases the amount of short-term borrowings issued by the Utilities when property taxes are due and as property taxes increase, but generally does not impact net income. See "Changes To Tax Laws Could Adversely Affect the Companies," in Item 1A, "Federal Income Tax" in Note A, "Rate Plans" in Note B, "Other Regulatory Matters" in Note B and Note L to the financial statements in Item 8 and "Aged Accounts Receivable Balances," above. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note W and Note X to the financial statements in Item 8. Net income is the result of cash and non-cash (or accrual) transactions. Only cash transactions affect the Companies' cash flows from operating activities. Principal non-cash charges or credits include depreciation, deferred income tax expense, amortizations of certain regulatory assets and liabilities and accrued unbilled revenue. Non-cash charges or credits may also be accrued under the revenue decoupling and cost reconciliation mechanisms in the Utilities' New York electric and gas rate plans. See "Rate Plans - CECONY- Electric and Gas" and "Rate Plans - O&R New York - Electric and Gas" in Note B to the financial statements in Item 8. For Con Edison, 2021 net income also included non-cash losses recognized with respect to impairments of Con Edison Transmission's investments in MVP, Stagecoach and Honeoye. Certain prior period amounts have been reclassified within the Companies' cash flows from operating activities to conform with current period presentation. Net cash flows from operating activities in 2023 for Con Edison were $1,779 million lower than in 2022. The changes in net cash flows for Con Edison primarily reflect: •a decrease in accounts payable ($843 million); •lower pensions and retiree benefits obligations, net ($377 million); •higher deferred charges, noncurrent assets, leases, net and other regulatory assets ($346 million); and •lower deferred credits, noncurrent liabilities and other regulatory liabilities ($249 million). Net cash flows from operating activities in 2022 for Con Edison were $1,202 million higher than in 2021. The changes in net cash flows for Con Edison primarily reflect: •an increase in accounts payable ($514 million); •lower pension and retiree benefit contributions ($433 million); •lower other receivables and other current assets ($136 million); •lower revenue decoupling mechanism receivable ($79); and •lower prepayments ($50 million). Net cash flows from operating activities in 2023 for CECONY were $978 million lower than in 2022. The changes in net cash flows for CECONY primarily reflect: •a decrease in accounts payable ($459 million); •higher deferred charges, noncurrent assets, leases, net and other regulatory assets ($306 million); and •higher other receivables and other current assets ($247 million). Net cash flows from operating activities in 2022 for CECONY were $1,077 million higher than in 2021. The changes in net cash flows for CECONY primarily reflect: •an increase in accounts payable ($257 million); •lower pension and retiree benefit contributions ($407 million); •lower other receivables and other current assets ($272 million); •lower revenue decoupling mechanism receivable ($89); and CON EDISON ANNUAL REPORT 202367 CON EDISON ANNUAL REPORT 202367 CON EDISON ANNUAL REPORT 202367 CON EDISON ANNUAL REPORT 2023 67 •lower prepayments ($42 million). 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. **Current (2025):** The Utilities' cash flows from operating activities primarily reflect their energy sales and deliveries and cost of operations. The volume of energy sales and deliveries is primarily affected by factors external to the Utilities, such as customer demand, weather, market prices for energy and economic conditions. Measures that promote distributed energy resources, such as distributed generation, demand reduction and energy efficiency, also affect the volume of energy sales and deliveries. 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. These temporary differences affect the timing of cash flows, but not net income, as the Companies are required to record deferred tax assets and liabilities at the current corporate tax rate for the temporary differences. For the Utilities, credits to their customers of the net benefits of the TCJA, including the reduction of the corporate tax rate to 21 percent, decrease cash flows from operating activities. Pursuant to their rate plans, the Utilities also recover from customers the amount of property taxes they will pay. The payment of property taxes by the Utilities affects the timing of cash flows and increases the amount of short-term borrowings issued by the Utilities when property taxes are due and as property taxes increase, but generally does not impact net income. See "Changes To Tax Laws Could Adversely Affect the Companies" in Item 1A, "Federal Income Tax" in Note A, "Rate Plans" in Note B, "Other Regulatory Matters" in Note B and Note L to the financial statements in Item 8. 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. A continued increase in accounts receivable balances has impacted and is expected to continue to impact the Companies' liquidity. See "Aged Accounts Receivable Balances," above. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note W and Note X to the financial statements in Item 8. Net income is the result of cash and non-cash (or accrual) transactions. Only cash transactions affect the Companies' cash flows from operating activities. Principal non-cash charges or credits include depreciation, deferred income tax expense, amortizations of certain regulatory assets and liabilities and accrued unbilled revenue. Non-cash charges or credits may also be accrued under the revenue decoupling and cost reconciliation mechanisms in the Utilities' New York electric and gas rate plans. See "Rate Plans - CECONY- Electric and Gas" and "Rate Plans - O&R New York - Electric and Gas" in Note B to the financial statements in Item 8. Certain prior period amounts have been reclassified within the Companies' cash flows from operating activities to conform with current period presentation. Net cash flows from operating activities in 2024 for Con Edison were $1,458 million higher than in 2023. The changes in net cash flows for Con Edison primarily reflect: •lower net deferred charges, noncurrent assets, leases and other regulatory liabilities balances of $682 million; •an increase in accounts payable of $284 million; •a decrease in prepayments of $225 million; •a decrease in unbilled revenue and net unbilled revenue deferrals of $123 million; •a decrease in the revenue decoupling mechanism receivable of $39 million; •an increase in accrued interest of $35 million; and •an increase in accrued taxes of $8 million. Net cash flows from operating activities in 2024 for CECONY were $1,073 million higher than in 2023. The changes in net cash flows for CECONY primarily reflect: •lower net deferred charges, noncurrent assets, leases, net and other regulatory assets of $713 million; •lower other receivables and other current assets of $220 million; and •an increase in accounts payable of $145 million; 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. --- ## Modified: Con Edison Transmission **Key changes:** - Reworded sentence: "CON EDISON ANNUAL REPORT 202451 CON EDISON ANNUAL REPORT 202451 CON EDISON ANNUAL REPORT 202451 51" **Prior (2024):** Con Edison Transmission has no properties. Con Edison Transmission has ownership interests in electric and gas transmission companies. For information about these companies, see "Con Edison Transmission" in Item 1 (which information is incorporated herein by reference). Item 3: Legal Proceedings For information about certain legal proceedings affecting the Companies, see "Other Regulatory Matters" in Note B and "Superfund Sites" and "Asbestos Proceedings" in Note G and "Manhattan Explosion and Fire" in Note H to the financial statements in Item 8 and "Environmental Matters - CECONY" and "Environmental Matters - O&R" in Item 1 of this report, which information is incorporated herein by reference. Item 4: Mine Safety Disclosures Not applicable. 46CON EDISON ANNUAL REPORT 2023 46CON EDISON ANNUAL REPORT 2023 46CON EDISON ANNUAL REPORT 2023 46 CON EDISON ANNUAL REPORT 2023 **Current (2025):** Con Edison Transmission has no properties. Con Edison Transmission has ownership interests in electric and gas transmission companies. For information about these companies, see "Con Edison Transmission" in Item 1 (which information is incorporated herein by reference). Item 3: Legal Proceedings For information about certain legal proceedings affecting the Companies, see "Other Regulatory Matters" in Note B and "Superfund Sites" and "Asbestos Proceedings" in Note G and "Manhattan Explosion and Fire" in Note H to the financial statements in Item 8 and "Environmental Matters - CECONY" and "Environmental Matters - O&R" in Item 1 of this report, which information is incorporated herein by reference. Item 4: Mine Safety Disclosures Not applicable. CON EDISON ANNUAL REPORT 202451 CON EDISON ANNUAL REPORT 202451 CON EDISON ANNUAL REPORT 202451 51 --- ## Modified: Taxes, Other Than Income Taxes **Key changes:** - Reworded sentence: "Taxes, other than income taxes, remained consistent in 2024 compared with 2023." **Prior (2024):** At $2,946 million, taxes other than income taxes remain one of CECONY's largest operating expenses. The principal components of, and variations in, taxes other than income taxes were: For the Years Ended December 31,(Millions of Dollars)20232022VariationProperty taxes$2,503$2,318$185State and local taxes related to revenue receipts409411(2)Payroll taxes77707Other taxes(43)88(131)Total$2,946(a)$2,887(a)$59 (a)Including sales tax on customers' bills, total taxes other than income taxes in 2023 and 2022 were $3,652 million and $3,548 million, respectively. **Current (2025):** At $3,173 million, taxes other than income taxes remain one of CECONY's largest operating expenses. The principal components of, and variations in, taxes other than income taxes were: For the Years Ended December 31,(Millions of Dollars)20242023VariationProperty taxes$2,738$2,503$235State and local taxes related to revenue receipts42940920Payroll taxes83776Other 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. (b)Including the deferral of under-collected property taxes in 2024 and 2023 of $83 million and $50 million, respectively. --- ## Modified: Net Interest Expense **Key changes:** - Reworded sentence: "Net interest expense increased $9 million in 2024 compared with 2023 primarily due to higher interest expense for long-term debt due to higher debt balances ($5 million)." **Prior (2024):** Net interest expense increased $123 million in 2023 compared with 2022 primarily due to higher interest expense for long-term debt ($79 million) and short-term debt ($42 million). **Current (2025):** Net interest expense increased $164 million in 2024 compared with 2023 primarily due to higher interest expense for long-term debt due to higher debt balances ($142 million) and short-term debt ($3 million). --- ## Modified: Consolidated Statement of Equity **Key changes:** - Reworded sentence: "(In Millions, except for dividends per share)Common StockAdditionalPaid-InCapitalRetainedEarningsTreasury StockCapitalStockExpenseAccumulatedOtherComprehensiveIncomeNon-controllingInterestSharesAmountSharesAmountTotalBALANCE AS OF DECEMBER 31, 2021354$37$9,710$11,44523$(1,038)$(122)$5$299$20,336Net income (loss)1,660(60)1,600Common stock dividends ($3.16 per share)(1,120)(1,120)Issuance of common shares for stock plans19393Other comprehensive income1717Distributions to noncontrolling interests(37)(37)BALANCE AS OF DECEMBER 31, 2022355$37$9,803$11,98523$(1,038)$(122)$22$202$20,889Net income (loss)2,519(3)2,516Common stock dividends ($3.24 per share)(1,127)(1,127)Issuance of common shares for stock plans18989Common stock repurchases(11)(31)11(979)(1,010)Distributions to noncontrolling interests(4)(4)Disposal of Clean Energy Businesses(195)(195)BALANCE AS OF DECEMBER 31, 2023345$37$9,861$13,37734$(2,017)$(122)$22$ - $21,158Net income1,8201,820Common stock dividends ($3.32 per share)(1,149)(1,149)Issuance of common shares for stock plans21112113Other comprehensive income77Stock Awards1313BALANCE AS OF DECEMBER 31, 2024347$38$9,986$14,04834$(2,017)$(122)$29$ - $21,962" **Prior (2024):** (In Millions, except for dividends per share)Common StockAdditionalPaid-InCapitalRetainedEarningsTreasury StockCapitalStockExpenseAccumulatedOtherComprehensiveIncome/(Loss)Non-controllingInterestSharesAmountSharesAmountTotalBALANCE AS OF DECEMBER 31, 2020342$36$8,808$11,17823$(1,038)$(112)$(25)$218$19,065Net income (loss)1,346(153)1,193Common stock dividends ($3.10 per share)(1,079)(1,079)Issuance of common shares - public offering101775(10)766Issuance of common shares for stock plans2127127Other comprehensive income3030Distributions to noncontrolling interests(23)(23)Net proceeds from sale of equity interest257257BALANCE AS OF DECEMBER 31, 2021354$37$9,710$11,44523$(1,038)$(122)$5$299$20,336Net income (loss)1,660(60)1,600Common stock dividends ($3.16 per share)(1,120)(1,120)Issuance of common shares for stock plans19393Other comprehensive income1717Distributions to noncontrolling interests(37)(37)BALANCE AS OF DECEMBER 31, 2022355$37$9,803$11,98523$(1,038)$(122)$22$202$20,889Net income (loss)2,519(3)2,516Common stock dividends ($3.24 per share)(1,127)(1,127)Issuance of common shares for stock plans18989Common stock repurchases(11)(31)11(979)(1,010)Distributions to noncontrolling interests(4)(4)Disposal of Clean Energy Businesses(195)(195)BALANCE AS OF DECEMBER 31, 2023345$37$9,861$13,37734$(2,017)$(122)$22$ - $21,158 **Current (2025):** (In Millions, except for dividends per share)Common StockAdditionalPaid-InCapitalRetainedEarningsTreasury StockCapitalStockExpenseAccumulatedOtherComprehensiveIncomeNon-controllingInterestSharesAmountSharesAmountTotalBALANCE AS OF DECEMBER 31, 2021354$37$9,710$11,44523$(1,038)$(122)$5$299$20,336Net income (loss)1,660(60)1,600Common stock dividends ($3.16 per share)(1,120)(1,120)Issuance of common shares for stock plans19393Other comprehensive income1717Distributions to noncontrolling interests(37)(37)BALANCE AS OF DECEMBER 31, 2022355$37$9,803$11,98523$(1,038)$(122)$22$202$20,889Net income (loss)2,519(3)2,516Common stock dividends ($3.24 per share)(1,127)(1,127)Issuance of common shares for stock plans18989Common stock repurchases(11)(31)11(979)(1,010)Distributions to noncontrolling interests(4)(4)Disposal of Clean Energy Businesses(195)(195)BALANCE AS OF DECEMBER 31, 2023345$37$9,861$13,37734$(2,017)$(122)$22$ - $21,158Net income1,8201,820Common stock dividends ($3.32 per share)(1,149)(1,149)Issuance of common shares for stock plans21112113Other comprehensive income77Stock Awards1313BALANCE AS OF DECEMBER 31, 2024347$38$9,986$14,04834$(2,017)$(122)$29$ - $21,962 --- ## Modified: (Millions of Dollars) **Key changes:** - Reworded sentence: "(a) 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." - Reworded sentence: "CECONY Current assets at December 31, 2024 were $317 million higher than at December 31, 2023." - Reworded sentence: "Net plant at December 31, 2024 was $2,335 million higher than at December 31, 2023." - Reworded sentence: "Current liabilities at December 31, 2024 were $135 million lower than at December 31, 2023." - Reworded sentence: "Long-term debt at December 31, 2024 was $2,599 million higher than at December 31, 2023." **Prior (2024):** (a) Other includes the parent company, Con Edison's tax equity investments, the deferred project held for sale and consolidation adjustments. 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. (d) On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See in Note W and Note X to the financial statements in Item 8. 66CON EDISON ANNUAL REPORT 2023 66CON EDISON ANNUAL REPORT 2023 66CON EDISON ANNUAL REPORT 2023 66 CON EDISON ANNUAL REPORT 2023 **Current (2025):** (a) On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note W and Note X to the financial statements in Item 8. (b) 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) Represents the consolidated results of operations of Con Edison and its businesses. (d) See "Reconciliation of Cash, Temporary Cash Investments and Restricted Cash" in Note A to the financial statements in Item 8. 70CON EDISON ANNUAL REPORT 2024 70CON EDISON ANNUAL REPORT 2024 70CON EDISON ANNUAL REPORT 2024 70 --- ## Modified: Results of Operations **Key changes:** - Reworded sentence: "Net income for common stock and earnings per share for the years ended December 31, 2024 and 2023 were as follows: (Millions of Dollars,except per share amounts)Net Income forCommon StockEarnings per Share 2024202320242023CECONY$1,748$1,606$5.05 $4.62 O&R104960.30 0.28 Clean Energy Businesses (a) - 22 - 0.07 Con Edison Transmission (b)45370.13 0.11 Other (c)(77)758(0.22)2.17 Con Edison (d)$1,820$2,519$5.26 $7.25 Clean Energy Businesses (a) (a)Net income for common stock and earnings per share from the Clean Energy Businesses for the year ended December 31, 2023 reflects $2 million or $0.01 a share (after-tax) of the effects of HLBV accounting for tax equity investments in certain renewable electric projects." - Removed sentence: "Net income for common stock and earnings per share from the Clean Energy Businesses for the year ended December 31, 2021 includes $(3) million (after-tax) or $(0.01) a share (after-tax) for the loss from the sale of a renewable electric project." - Reworded sentence: "(b) Net income for common stock and earnings per share from Con Edison Transmission for the year ended December 31, 2024 includes $5 million or $0.01 a share (after-tax) for accretion of the basis difference of Con Edison's equity investment in Mountain Valley Pipeline, LLC." - Reworded sentence: "(c) 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." - Added sentence: "Net income for common stock and earnings per share for the year ended December 31, 2024 includes $(46) million (after-tax) or $(0.13) a share (after-tax) for adjustments related to the sale of all of the stock of the Clean Energy Businesses." **Prior (2024):** Clean Energy Businesses (a) (a)Net income for common stock and earnings per share from the Clean Energy Businesses for the year ended December 31, 2023, 2022 and 2021 reflects $2 million or $0.01 a share (after-tax), $46 million or $0.14 a share (after-tax) and $107 million or $0.31 a share (after-tax) of the effects of HLBV accounting for tax equity investments in certain renewable electric projects. Net income for common stock and earnings per share from the Clean Energy Businesses also includes $(9) million or $(0.03) a share, $135 million or $0.38 a share and $40 million or $0.11 a share of net after-tax mark-to-market effects in 2023, 2022 and 2021, respectively. Depreciation and amortization expenses on their assets of $31 million or $0.08 a share (after-tax) and $46 million or $0.13 a share (after tax) were not recorded for the years ended December 31, 2023 and 2022, respectively. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note W and Note X to the financial statements in Item 8. Net income for common stock and earnings per share from the Clean Energy Businesses for the year ended December 31, 2021 includes $(3) million (after-tax) or $(0.01) a share (after-tax) for the loss from the sale of a renewable electric project. See Note S to the financial statements in Item 8. (b) Net loss for common stock and earnings per share from Con Edison Transmission for the year ended December 31, 2022 includes $(4) million or $(0.01) a share (net of federal taxes) relating to the remeasurement of deferred state taxes related to prior year dispositions. Net loss for common stock and earnings per share from Con Edison Transmission for the year ended December 31, 2021 includes $(153) million or $(0.44) a share of net after-tax impairment loss related to its investment in Stagecoach, $(168) million or $(0.48) a share of net after-tax impairment loss related to its investment in Mountain Valley Pipeline, LLC and $(5) million or $(0.02) a share of loss related to a goodwill impairment loss related to its investment in Honeoye. See "Investment in Mountain Valley Pipeline, LLC (MVP)" in Note A to the financial statements in Item 8. (c) Other includes the parent company, Con Edison's tax equity investments, the deferred project held for sale and consolidation adjustments. See Note X to the financial statements in Item 8. Net income for common stock and earnings per share for the year ended December 31, 2023 includes $(11) million or $(0.03) a share (after-tax) of income tax impact on the effects of HLBV accounting for tax equity investments in certain renewable electric projects and an immaterial amount or $0.00 a share of income tax impact on the net after-tax mark-to-market effects. Net income for common stock for the year ended December 31, 2023 also includes $(14) million and $(0.04) a share of transaction costs and other accruals related to the sale of the Clean Energy Businesses (net of tax). Impact of the sale of the Clean Energy Businesses on the changes in state unitary tax apportionments (net of federal taxes) is $(7 million) or $(0.02) per share. Depreciation and amortization expenses on the assets of the Clean Energy Businesses $(3) million or $(0.01) a share (after-tax) were not recorded for the year ended December 31, 2023. Net income for common stock for the year ended December 31, 2023 includes $767 million or $2.21 per share (after-tax) for the gain on the sale of the Clean Energy Businesses. See Note W and Note X to the financial statements in Item 8. Net income for common stock and earnings per share for the year ended December 31, 2022 includes $(4) million (after-tax) or $(0.02) a share (after-tax) of income tax impact on the effects of HLBV accounting for tax equity investments in certain renewable electric projects and $(11) million or $(0.03) a share of income tax impact on the net after-tax mark-to-market effects. Net income for common stock and earnings per share for the year ended December 31, 2022 includes $(9) million or $(0.03) a share (net of federal taxes) relating to the remeasurement of deferred state taxes related to prior year dispositions for Con Edison Transmission. Net income for common stock for the year ended December 31, 2022 also includes $(35) million and $(0.10) a share of transaction costs and other accruals related to the sale of the Clean Energy Businesses (net of tax). Impact of the sale of the Clean Energy Businesses on the remeasurement of deferred state taxes and valuation allowance for deferred tax assets (net of federal taxes) is $(119 million) or $(0.33) per share. Depreciation and amortization expenses on the assets of the Clean Energy Businesses $(4) million or $(0.01) a share (after-tax) were not recorded for the year ended December 31, 2022. See Note W and Note X to the financial statements in Item 8. Net income for common stock and earnings per share for the year ended December 31, 2021 includes $(9) million (after-tax) or $(0.02) a share (after-tax) of income tax impact on the effects of HLBV accounting for tax equity investments in certain renewable electric projects and $(3) million or $(0.01) a share of income tax impact on the net after-tax mark-to-market effects. Net income for common stock and earnings per share for the year ended December 31, 2021 includes $6 million or $0.02 a share of income tax impact for the impairment loss related to Con Edison Transmission's investment in Stagecoach. Net income for common stock and earnings per share for the year ended December 31, 2021 includes $6 million or $0.01 a share of income tax impact for the impairment loss related to Con Edison Transmission's investment in Mountain Valley Pipeline, LLC. See "Investments - 2021 Partial Impairment of Investment in Stagecoach Gas Services LLC (Stagecoach)" and "Investment in Mountain Valley Pipeline, LLC (MVP)" in Note A to the financial statements in Item 8. (d) Earnings per share on a diluted basis were $7.21 a share, $4.66 a share and $3.85 a share in 2023, 2022 and 2021, respectively. See "Earnings Per Common Share" in Note A to the financial statements in Item 8. The following tables present the estimated effect of major factors on earnings per share and net income for common stock for the years ended December 31, 2023 as compared with 2022, and 2022 as compared with 2021. CON EDISON ANNUAL REPORT 202353 CON EDISON ANNUAL REPORT 202353 CON EDISON ANNUAL REPORT 202353 CON EDISON ANNUAL REPORT 2023 53 Variation for the Year Ended December 31, 2023 vs. 2022Net Income for Common Stock (Millions of Dollars)Earnings per ShareCECONY (a)Electric base rate increase$277$0.78Gas base rate increase660.19Lower operation and maintenance expense from stock-based compensation, injuries and damages offset, in part, by higher health care costs170.05Higher interest income100.03Higher income from allowance for equity funds used during construction30.01Higher interest expense(91)(0.26)Higher electric and gas operations maintenance activities(46)(0.13)Weather impact on steam revenues offset, in part, by the benefit from the new steam rate plan effective November 2023(12)(0.03)Change in incentives earned under the electric and gas earnings adjustment mechanisms (EAMs)(8)(0.02)Accretive effect of share repurchase - 0.09Other - (0.01)Total CECONY2160.70O&R (a)Electric base rate increase70.02Gas base rate increase40.01Other(3) - Total O&R80.03Clean Energy Businesses (b)Total Clean Energy Businesses(360)(1.01)Con Edison TransmissionHigher investment income, primarily due to the recognition of allowance of funds used during construction from Mountain Valley Pipeline, LLC for 2023310.09Remeasurement of deferred state taxes related to dispositions prior to 202240.01Other30.01Total Con Edison Transmission380.11Other, including parent company expenses Gain and other impacts related to the sale of the Clean Energy Businesses9032.58Higher interest income primarily related to proceeds from sale of the Clean Energy Businesses 180.05Lower interest expense170.05Net mark-to-market effects100.03Remeasurement of deferred state tax related to dispositions prior to 202290.03Production tax credit from deferred project70.01Lower New York state capital taxes50.01Accrued commitment to Consolidated Edison Foundation, Inc.(9)(0.03)HLBV effects(7)(0.01)Accretive effect of share repurchase - 0.03Other4(0.01)Total Other, including parent company expenses9572.74Total Reported (GAAP basis)$859$2.57a.Under the revenue decoupling mechanisms in the Utilities' New York electric and gas rate plans and the weather-normalization clause applicable to their gas businesses, revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved. 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. Accordingly, such costs do not generally affect Con Edison's results of operations.b. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses and therefore 2023 reflects the financial results for the two months ended February 2023. a.Under the revenue decoupling mechanisms in the Utilities' New York electric and gas rate plans and the weather-normalization clause applicable to their gas businesses, revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved. 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. Accordingly, such costs do not generally affect Con Edison's results of operations. b. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses and therefore 2023 reflects the financial results for the two months ended February 2023. 54CON EDISON ANNUAL REPORT 2023 54CON EDISON ANNUAL REPORT 2023 54CON EDISON ANNUAL REPORT 2023 54 CON EDISON ANNUAL REPORT 2023 Variation for the Year Ended December 31, 2022 vs. 2021Net Income for Common Stock (Millions of Dollars)Earnings per ShareCECONY (a)Higher electric rate base$48$0.14Higher gas rate base390.11Lower costs related to winter storms and heat events260.08Higher income from allowance for funds used during construction160.04Lower health care and other employee benefits costs130.03Weather impact on steam revenues60.02Resumption of the billing of late payment charges and other fees to allowed rate plan levels(34)(0.10)Lower incentives earned under the electric and gas earnings adjustment mechanisms (EAMs) and positive incentives(28)(0.08)Higher stock-based compensation costs(18)(0.05)Regulatory commission expense(11)(0.03)Higher payroll taxes(4)(0.01)Dilutive effect of stock issuances - (0.07)Other(7)(0.02)Total CECONY460.06O&R (a)Electric base rate increase160.04Gas base rate increase80.02Higher stock-based compensation costs(2)(0.01)Other(9)(0.02)Total O&R130.03Clean Energy Businesses (b)Higher wholesale revenue2070.59Net mark-to-market effects950.27Impact of the sale of the Clean Energy Businesses440.12Loss from sale of a renewable electric project in 202130.01Higher gas purchased for resale(135)(0.39)HLBV effects(61)(0.17)Higher operation and maintenance expense from engineering, procurement and construction of renewable electric projects(21)(0.06)Higher cost from purchased power(5)(0.01)Lower tax credits(4)(0.01)Higher interest expense(3)(0.01)Dilutive effect of stock issuances - (0.02)Other(4) - Total Clean Energy Businesses1160.32Con Edison TransmissionImpairment loss related to investment in Mountain Valley Pipeline, LLC1680.48Impairment loss related to investment in Stagecoach in 20211530.44Impairment loss related to investment in Honeoye in 202150.02Lower interest expense30.01Lower investment income(14)(0.04)Remeasurement of deferred state tax related to dispositions prior to 2022(4)(0.01)Other40.01Total Con Edison Transmission3150.91Other, including parent company expenses HLBV effects5 - Impact of the sale of the Clean Energy Businesses(158)(0.44) CON EDISON ANNUAL REPORT 202355 CON EDISON ANNUAL REPORT 202355 CON EDISON ANNUAL REPORT 202355 CON EDISON ANNUAL REPORT 2023 55 Remeasurement of deferred state tax related to dispositions prior to 2022(9)(0.03)Impact of net mark-to-market effects(7)(0.02)Impairment related to investment in Stagecoach in 2021(6)(0.02)Impairment related to investment in Mountain Valley Pipeline, LLC(6)(0.01)Dilutive effect of stock issuances - 0.01Other50.01Total Other, including parent company expenses(176)(0.50)Total Reported (GAAP basis)$314$0.82a.Under the revenue decoupling mechanisms in the Utilities' New York electric and gas rate plans and the weather-normalization clause applicable to their gas businesses, revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved. 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. Accordingly, such costs do not generally affect Con Edison's results of operations.b. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. a.Under the revenue decoupling mechanisms in the Utilities' New York electric and gas rate plans and the weather-normalization clause applicable to their gas businesses, revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved. 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. Accordingly, such costs do not generally affect Con Edison's results of operations. b. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. The Companies' other operations and maintenance expenses for the years ended December 31, 2023, 2022 and 2021 were as follows: (Millions of Dollars)202320222021CECONYOperations (a)$1,845$1,639$1,617Pensions and other postretirement benefits338415(42)Health care and other benefits172155173Regulatory fees and assessments (b)380354332Other (a)441479372Total CECONY3,1763,0422,452O&R375351313Clean Energy Businesses (c)48504475Con Edison Transmission111319Other (d)(4)(5)(5)Total other operations and maintenance expenses$3,606$3,905$3,254 Operations (a) Regulatory fees and assessments (b) Other (a) Clean Energy Businesses (c) Other (d) (a)Certain prior period amounts have been reclassified within the Companies' other operations and maintenance expenses to conform with current period presentation. (b)Includes Demand Side Management, System Benefit Charges and Public Service Law 18A assessments that are collected in revenues. (c)On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note W and Note X to the financial statements in Item 8. (d)Other includes the parent company, Con Edison's tax equity investments, the deferred project held for sale and consolidation adjustments. See Note X to the financial statements in Item 8. Con Edison's principal business segments are CECONY's regulated utility activities, O&R's regulated utility activities and Con Edison Transmission. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note W and Note X 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, 2023, 2022 and 2021 follows. For additional business segment financial information, see Note P to the financial statements in Item 8. 56CON EDISON ANNUAL REPORT 2023 56CON EDISON ANNUAL REPORT 2023 56CON EDISON ANNUAL REPORT 2023 56 CON EDISON ANNUAL REPORT 2023 The Companies' results of operations for the years ended December 31, 2023, 2022 and 2021 were: CECONYO&RClean Energy (e) BusinessesCon Edison TransmissionOther (a)Con Edison (b)(Millions of Dollars)202320222021202320222021202320222021202320222021202320222021202320222021Operating revenues$13,476$13,268$11,716$1,056$1,085$941$129$1,319$1,022$4$4$4$(2)$(6)$(7)$14,663$15,670$13,676Purchased power2,2942,2011,633247276206 - 7 - - - - - (5)(4)2,5412,4791,835Fuel282356229 - - - - - - - - - - - - 282356229Gas purchased for resale 677869541111135884124162 - - - - - (1)8291,245690Other operations and maintenance (c)3,1763,0422,45237535131348504475111319(4)(5)(5)3,6063,9053,254Depreciation and amortization1,9241,7781,7051069895 - 178231111 - 1 - 2,0312,0562,032Taxes, other than income taxes2,9462,8872,696918989321181 - - 2873,0433,0052,810Gain on sale of the Clean Energy Businesses - - - - - - - - - - - - 865 - - 865 - - Operating income (loss)2,1772,1352,46012613615037368236(9)(10)(16)865(5)(4)3,1962,6242,826Other income (deductions) (d)732332(108)4923(12)13(10)6219(407)(14)(51)(1)830326(538)Net interest expense (income)94582276251464216(35)68259914241,023852905Income before income tax expense1,9641,6451,5901241139622406158514(432)842(70)(29)3,0032,0981,383Income tax expense (benefit)35825524628252138444145(114)84129(7)487498190Net income (loss)$1,606$1,390$1,344$96$88$75$19$322$114$37$(1)$(318)$758$(199)$(22)$2,516$1,600$1,193Income (loss) attributable to non-controlling interest - - - - - - (3)(60)(152) - - (2) - - 1(3)(60)(153)Net income (loss) from common stock$1,606$1,390$1,344$96$88$75$22$382$266$37$(1)$(316)$758$(199)$(23)$2,519$1,660$1,346(a) Other includes the parent company, Con Edison's tax equity investments, the deferred project held for sale and consolidation adjustments. See Note X to the financial statements in Item 8. CECONY O&R **Current (2025):** Net income for common stock and earnings per share for the years ended December 31, 2024 and 2023 were as follows: (Millions of Dollars,except per share amounts)Net Income forCommon StockEarnings per Share 2024202320242023CECONY$1,748$1,606$5.05 $4.62 O&R104960.30 0.28 Clean Energy Businesses (a) - 22 - 0.07 Con Edison Transmission (b)45370.13 0.11 Other (c)(77)758(0.22)2.17 Con Edison (d)$1,820$2,519$5.26 $7.25 Clean Energy Businesses (a) (a)Net income for common stock and earnings per share from the Clean Energy Businesses for the year ended December 31, 2023 reflects $2 million or $0.01 a share (after-tax) of the effects of HLBV accounting for tax equity investments in certain renewable electric projects. Net income for common stock and earnings per share from the Clean Energy Businesses also includes $(9) million or $(0.03) a share of net after-tax mark-to-market effects in 2023. Depreciation and amortization expenses on their assets of $31 million or $0.08 a share (after-tax) were not recorded for the year ended December 31, 2023. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note W and Note X to the financial statements in Item 8. See Note S to the financial statements in Item 8. (b) Net income for common stock and earnings per share from Con Edison Transmission for the year ended December 31, 2024 includes $5 million or $0.01 a share (after-tax) for accretion of the basis difference of Con Edison's equity investment in Mountain Valley Pipeline, LLC. See "Investment in Mountain Valley Pipeline, LLC (MVP)" in Note A to the financial statements in Item 8. (c) 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. Net income for common stock and earnings per share for the year ended December 31, 2024 includes $(46) million (after-tax) or $(0.13) a share (after-tax) for adjustments related to the sale of all of the stock of the Clean Energy Businesses. 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. 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. Net income for common stock and earnings per share for the year ended December 31, 2023 includes $(11) million or $(0.03) a share (after-tax) of income tax impact on the effects of HLBV accounting for tax equity investments in certain renewable electric projects and an immaterial amount or $0.00 a share of income tax impact on the net after-tax mark-to-market effects. Net income for common stock for the year ended December 31, 2023 also includes $(14) million and $(0.04) a share of transaction costs and other accruals related to the sale of the Clean Energy Businesses (net of tax). 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, 2023 is $(7 million) or $(0.02) per share. Depreciation and amortization expenses on the assets of the Clean Energy Businesses $(3) million or $(0.01) a share (after-tax) were not recorded for the year ended December 31, 2023. Net income for common stock for the year ended December 31, 2023 includes $767 million or $2.21 per share (after-tax) for the gain on the sale of the Clean Energy Businesses. See Note W and Note X to the financial statements in Item 8. (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. The 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. 58CON EDISON ANNUAL REPORT 2024 58CON EDISON ANNUAL REPORT 2024 58CON EDISON ANNUAL REPORT 2024 58 Variation for the Year Ended December 31, 2024 vs. 2023Net Income for Common Stock (Net of Tax) (Millions of Dollars)Earnings per ShareCECONY (a)Higher electric rate base$115$0.33Steam rate plan effective November 2023720.21Higher gas rate base190.05Change in incentives earned under the electric and gas earnings adjustment mechanisms140.04Higher electric, gas and steam operations and maintenance costs(54)(0.16)Higher regulatory commission expense and other corporate expenses(16)(0.04)Impact of the NYSPSC order denying an April 2023 petition by CECONY that requested permission to capitalize costs to implement its new customer billing and information system(10)(0.03)Accretive effect of share repurchase - 0.03Other2 - Total CECONY1420.43O&R (a)Electric base rate increase210.06Gas base rate increase2 - Higher interest expense(6)(0.02)Other(9)(0.02)Total O&R80.02Clean Energy Businesses (b)Total Clean Energy Businesses(22)(0.07)Con Edison TransmissionIncome tax adjustment due to AFUDC from MVP50.01Accretion of the basis difference of Con Edison's equity investment in MVP50.01Other(2) - Total Con Edison Transmission80.02Other, including parent company expenses Gain and other impacts related to the sale of the Clean Energy Businesses(795)(2.28)Lower interest income(23)(0.07)Higher taxes other than income taxes(10)(0.03)Higher interest expense(3)(0.01)HLBV effects80.02Other(12)(0.02)Total Other, including parent company expenses (c)(835)(2.39)Total Reported (GAAP basis)$(699)$(1.99)a.Under the revenue decoupling mechanisms in the Utilities' New York electric and gas rate plans and the weather-normalization clause applicable to their gas businesses, revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved. 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. Accordingly, such costs do not generally affect Con Edison's results of operations.b. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses and therefore 2023 reflects the financial results for the two months ended February 2023.c. 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. a.Under the revenue decoupling mechanisms in the Utilities' New York electric and gas rate plans and the weather-normalization clause applicable to their gas businesses, revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved. 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. Accordingly, such costs do not generally affect Con Edison's results of operations. b. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses and therefore 2023 reflects the financial results for the two months ended February 2023. c. 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. CON EDISON ANNUAL REPORT 202459 CON EDISON ANNUAL REPORT 202459 CON EDISON ANNUAL REPORT 202459 59 The Companies' other operations and maintenance expenses for the years ended December 31, 2024 and 2023 were as follows: (Millions of Dollars)20242023CECONYOperations$1,918$1,845Pensions and other postretirement benefits138338Health care and other benefits192172Regulatory fees and assessments (a)461380Other (b)644441Total CECONY3,3533,176O&R387375Clean Energy Businesses (c) - 48Con Edison Transmission1111Other (d) - (4)Total other operations and maintenance expenses$3,751$3,606 Clean Energy Businesses (c) Other (d) (a)Includes Demand Side Management, System Benefit Charges and Public Service Law 18A assessments that are collected in revenues. (b)Other includes the 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 in 2024 and 2023 were ($51 million) and ($38 million), respectively. (c)On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note W and 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. Con Edison's principal business segments are CECONY's regulated utility activities, O&R's regulated utility activities and Con Edison Transmission. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note W and Note X 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. For additional business segment financial information, see Note P to the financial statements in Item 8. 60CON EDISON ANNUAL REPORT 2024 60CON EDISON ANNUAL REPORT 2024 60CON EDISON ANNUAL REPORT 2024 60 The Companies' results of operations for the years ended December 31, 2024 and 2023 were: CECONYO&RClean Energy (c) BusinessesCon Edison TransmissionOther (a)Con Edison (b)(Millions of Dollars)202420232024202320242023202420232024202320242023Operating revenues$14,129$13,476$1,125$1,056$ - $129$4$4$(2)$(2)$15,256$14,663Purchased power2,2792,294290247 - - - - - - 2,5692,541Fuel170282 - - - - - - - - 170282Gas purchased for resale 52467775111 - 41 - - - - 599829Other operations and maintenance3,3533,176387375 - 481111 - (4)3,7513,606Depreciation and amortization2,0371,924117106 - - 11 - - 2,1552,031Taxes, other than income taxes3,1732,9469591 - 3 - 11223,2803,043Gain (loss) on sale of the Clean Energy Businesses - - - - - - - - (62)865(62)865Operating income (loss)2,5932,177161126 - 37(8)(9)(76)8652,6703,196Other income (deductions)5787323249 - 16162(16)(14)655830Net interest expense (income)1,1099456051 - 16 - 21891,1871,023Income before income tax expense2,0621,964133124 - 225351(110)8422,1383,003Income tax expense (benefit)3143582928 - 3814(33)84318487Net income (loss)$1,748$1,606$104$96$ - $19$45$37$(77)$758$1,820$2,516Income (loss) attributable to non-controlling interest - - - - - (3) - - - - - (3)Net income (loss) from common stock$1,748$1,606$104$96$ - $22$45$37$(77)$758$1,820$2,519 CECONY --- ## Modified: Aged Accounts Receivable Balances **Key changes:** - Reworded sentence: "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." - Reworded sentence: "In general, the Utilities suspended collection activities and service disconnections during the COVID-19 pandemic and have since resumed such activities." - Added sentence: "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)." - Reworded sentence: "O&R's 2022 - 2024 rate plans included reconciliation of late payment charges to amounts reflected in rates for years 2022 through 2024, with full recovery/refund via surcharge/sur-credit once the annual variance equals or exceeds 5 basis points of return on equity and reconciliation of write-offs of customer accounts receivable balances to amounts reflected in rates from January 1, 2020 through December 31, 2024, with full recovery/refund via surcharge/sur-credit once the annual variance equals or exceeds 5 basis points of return on equity." **Prior (2024):** At December 31, 2023, CECONY's and O&R's customer accounts receivables balances of $2,683 million and $95 million, respectively, included aged accounts receivables (balances outstanding in excess of 60 days) of $1,225 million and $21 million, respectively. In comparison, CECONY's and O&R's customer accounts receivable balances at February 28, 2020 were $1,322 million and $89 million, respectively, including aged accounts receivables of $408 million and $15 million, respectively. Prior to the start of the COVID-19 pandemic, the Utilities' practice was to write off customer accounts receivables as uncollectible 90 days after the account is disconnected for non-payment or the account is closed during the collection process. Due to the COVID-19 pandemic, New York State enacted laws prohibiting New York utilities, including CECONY and O&R, from disconnecting residential customers and small business customers. The Utilities largely suspended service disconnections, certain collection notices, final bill collection agency activity, new late payment charges and certain other fees from March 2020 through December 2021. CECONY's electric and gas rate plans include reconciliation of late payment charges (from January 1, 2023 through December 31, 2025) and write-offs of customer accounts receivable balances (from January 1, 2020 50CON EDISON ANNUAL REPORT 2023 50CON EDISON ANNUAL REPORT 2023 50CON EDISON ANNUAL REPORT 2023 50 CON EDISON ANNUAL REPORT 2023 through December 31, 2025) to amounts reflected in rates, with recovery/refund from or to customers via surcharge/sur-credit. 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). Amounts in excess of the surcharge caps will be deferred as a regulatory asset for recovery in CECONY's next base rate cases. O&R's 2022 - 2024 rate plans include reconciliation of late payment charges to amounts reflected in rates for years 2022 through 2024, with full recovery/refund via surcharge/sur-credit once the annual variance equals or exceeds 5 basis points of return on equity and reconciliation of write-offs of customer accounts receivable balances to amounts reflected in rates from January 1, 2020 through December 31, 2024, with full recovery/refund via surcharge/sur-credit once the annual variance equals or exceeds 5 basis points of return on equity. Although these regulatory mechanisms are in place, a continued slower recovery in cash of outstanding customer accounts receivable balances has impacted the Companies' liquidity and may continue to impact liquidity. See "Liquidity and Capital Resources" and "Capital Requirements and Resources," below and "Regulatory Matters - Rate Plans" and "COVID-19 Regulatory Matters" in Note B to the financial statements in Item 8. **Current (2025):** 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 comparison, CECONY's and O&R's customer accounts receivable balances at February 28, 2020 were $1,322 million and $89 million, respectively, including aged accounts receivables (balances outstanding in excess of 60 days) of $408 million and $15 million, respectively. Prior to the start of the COVID-19 pandemic, the Utilities' practice was to write off customer accounts receivables as uncollectible 90 days after the account is disconnected for non-payment or the account is closed during the collection process. In general, the Utilities suspended collection activities and service disconnections during the COVID-19 pandemic and have since resumed such activities. 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 202455 CON EDISON ANNUAL REPORT 202455 CON EDISON ANNUAL REPORT 202455 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 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 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). Amounts in excess of the surcharge caps will be deferred as a regulatory asset for recovery in CECONY's next base rate cases. O&R's 2022 - 2024 rate plans included reconciliation of late payment charges to amounts reflected in rates for years 2022 through 2024, with full recovery/refund via surcharge/sur-credit once the annual variance equals or exceeds 5 basis points of return on equity and reconciliation of write-offs of customer accounts receivable balances to amounts reflected in rates from January 1, 2020 through December 31, 2024, with full recovery/refund via surcharge/sur-credit once the annual variance equals or exceeds 5 basis points of return on equity. O&R's November 2024 joint proposal, that is subject to approval by the NYSPSC, includes reconciliation of uncollectible expenses and late payment charges that are subject to a combined annual threshold of $0.9 million and $0.5 million for electric and gas, respectively. 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. Amounts in excess of the surcharge caps will be deferred as a regulatory asset for recovery in O&R's next base rate cases. Although these regulatory mechanisms are in place, a continued increase in accounts receivable balances has impacted and is expected to continue to impact the Companies' liquidity. See "The Companies May Be Adversely Affected By Changes To The Utilities' Rate Pans" in Item 1A, "Liquidity and Capital Resources" and "Capital Requirements and Resources," below and "Regulatory Matters - Rate Plans" in Note B and Note N to the financial statements in Item 8. In particular, CECONY, in an effort to reduce aged accounts receivables balances, plans to continue to execute on its integrated collections strategy, which includes, among other things, implementation of payment arrangements, enhanced digital and mail communications to customers regarding collections, increased field collections by hiring new field collectors and increasing collector efficiency and employing additional call center representatives to handle in-bound call volumes. O&R's collection strategy aligns with that of CECONY's in many respects. --- ## Modified: Consolidated Statement of Capitalization **Key changes:** - Reworded sentence: "Shares outstanding December 31,At December 31,(In Millions)2024202320242023TOTAL SHAREHOLDER'S EQUITY BEFORE ACCUMULATED OTHER COMPREHENSIVE INCOME 235 235$19,961$19,144Pension and other postretirement benefit plan liability adjustments, net of taxes113Unrealized losses on derivatives qualified as cash flow hedges, less reclassification adjustment for gains (losses) included in net income and reclassification adjustment for unrealized losses included in regulatory assets, net of taxes (1)(1)TOTAL ACCUMULATED OTHER COMPREHENSIVE INCOME, NET OF TAXES 102TOTAL SHAREHOLDER'S EQUITY (See Statement of Shareholder's Equity) $19,971$19,146 TOTAL ACCUMULATED OTHER COMPREHENSIVE INCOME, NET OF TAXES TOTAL SHAREHOLDER'S EQUITY (See Statement of Shareholder's Equity) The accompanying notes are an integral part of these financial statements." **Prior (2024):** Shares outstandingDecember 31,At December 31,(In Millions)2023202220232022TOTAL EQUITY BEFORE ACCUMULATED OTHER COMPREHENSIVE INCOME 345355$21,136$20,665Pension plan liability adjustments, net of taxes2323Unrealized losses on derivatives qualified as cash flow hedges, less reclassification adjustment for gains/(losses) included in net income and reclassification adjustment for unrealized losses included in regulatory assets, net of taxes (1)(1)TOTAL ACCUMULATED OTHER COMPREHENSIVE INCOME, NET OF TAXES2222Equity21,15820,687Noncontrolling interest - 202TOTAL EQUITY (See Statement of Equity) $21,158$20,889 **Current (2025):** Shares outstandingDecember 31,At December 31,(In Millions)2024202320242023TOTAL EQUITY BEFORE ACCUMULATED OTHER COMPREHENSIVE INCOME 347345$21,933$21,136Pension and other postretirement benefit plan liability adjustments, net of taxes3023Unrealized losses on derivatives qualified as cash flow hedges, less reclassification adjustment for gains (losses) included in net income and reclassification adjustment for unrealized losses included in regulatory assets, net of taxes (1)(1)TOTAL ACCUMULATED OTHER COMPREHENSIVE INCOME, NET OF TAXES2922TOTAL EQUITY (See Statement of Equity) $21,962$21,158 --- ## Modified: Corporate Overview **Key changes:** - Reworded sentence: "Con Edison Transmission, through its subsidiaries, invests in electric transmission projects and manages, through joint ventures, both electric and gas assets while seeking to develop electric transmission projects." **Prior (2024):** Con Edison's principal business operations are those of the Utilities and Con Edison Transmission. CECONY is a regulated utility that provides electric service in New York City and New York's Westchester County, gas service in Manhattan, the Bronx, parts of Queens and parts of Westchester, and steam service in Manhattan. O&R is a regulated utility serving customers in a 1,300-square-mile-area in southeastern New York State and northern New Jersey. Con Edison Transmission, through its subsidiaries, invests in electric transmission projects supporting Con Edison's effort to transition to clean, renewable energy and manages, through joint ventures, both electric and gas assets while seeking to develop electric transmission projects that will bring clean, renewable electricity to customers, focusing on New York, New England, the Mid-Atlantic states and the Midwest. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note W and Note X to the financial statements in Item 8. In addition to the risks and uncertainties described in Item 1A and the Companies' material contingencies described in Notes B, G and H to the financial statements in Item 8, the Companies' management considers the following events, trends, and uncertainties to be important to understanding the Companies' current and future financial condition. **Current (2025):** Con Edison's principal business operations are those of the Utilities and Con Edison Transmission. CECONY is a regulated utility that provides electric service in New York City and New York's Westchester County, gas service in Manhattan, the Bronx, parts of Queens and parts of Westchester, and steam service in Manhattan. O&R is a regulated utility serving customers in a 1,300-square-mile-area in southeastern New York State and northern New Jersey. Con Edison Transmission, through its subsidiaries, invests in electric transmission projects and manages, through joint ventures, both electric and gas assets while seeking to develop electric transmission projects. 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. In addition to the risks and uncertainties described in Item 1A and the Companies' material contingencies described in Notes B, G and H to the financial statements in Item 8, the Companies' management considers the following events, trends, and uncertainties to be important to understanding the Companies' current and future financial condition. --- ## Modified: December 31 **Key changes:** - Reworded sentence: "Daily average Daily average 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." **Prior (2024):** Daily average Daily average Daily average 70CON EDISON ANNUAL REPORT 2023 70CON EDISON ANNUAL REPORT 2023 70CON EDISON ANNUAL REPORT 2023 70 CON EDISON ANNUAL REPORT 2023 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. For information about the Companies' credit ratings and certain financial ratios, see "Capital Requirements and Resources" in Item 1. **Current (2025):** Daily average Daily average 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. For information about the Companies' credit ratings and certain financial ratios, see "Capital Requirements and Resources" in Item 1. --- ## Modified: Consolidated Statement of Capitalization **Key changes:** - Reworded sentence: "Shares outstandingDecember 31,At December 31,(In Millions)2024202320242023TOTAL EQUITY BEFORE ACCUMULATED OTHER COMPREHENSIVE INCOME 347345$21,933$21,136Pension and other postretirement benefit plan liability adjustments, net of taxes3023Unrealized losses on derivatives qualified as cash flow hedges, less reclassification adjustment for gains (losses) included in net income and reclassification adjustment for unrealized losses included in regulatory assets, net of taxes (1)(1)TOTAL ACCUMULATED OTHER COMPREHENSIVE INCOME, NET OF TAXES2922TOTAL EQUITY (See Statement of Equity) $21,962$21,158" **Prior (2024):** Shares outstandingDecember 31,At December 31,(In Millions)2023202220232022TOTAL EQUITY BEFORE ACCUMULATED OTHER COMPREHENSIVE INCOME 345355$21,136$20,665Pension plan liability adjustments, net of taxes2323Unrealized losses on derivatives qualified as cash flow hedges, less reclassification adjustment for gains/(losses) included in net income and reclassification adjustment for unrealized losses included in regulatory assets, net of taxes (1)(1)TOTAL ACCUMULATED OTHER COMPREHENSIVE INCOME, NET OF TAXES2222Equity21,15820,687Noncontrolling interest - 202TOTAL EQUITY (See Statement of Equity) $21,158$20,889 **Current (2025):** Shares outstandingDecember 31,At December 31,(In Millions)2024202320242023TOTAL EQUITY BEFORE ACCUMULATED OTHER COMPREHENSIVE INCOME 347345$21,933$21,136Pension and other postretirement benefit plan liability adjustments, net of taxes3023Unrealized losses on derivatives qualified as cash flow hedges, less reclassification adjustment for gains (losses) included in net income and reclassification adjustment for unrealized losses included in regulatory assets, net of taxes (1)(1)TOTAL ACCUMULATED OTHER COMPREHENSIVE INCOME, NET OF TAXES2922TOTAL EQUITY (See Statement of Equity) $21,962$21,158 --- ## Modified: Taxes, Other Than Income Taxes **Key changes:** - Reworded sentence: "At $3,173 million, taxes other than income taxes remain one of CECONY's largest operating expenses." **Prior (2024):** At $2,946 million, taxes other than income taxes remain one of CECONY's largest operating expenses. The principal components of, and variations in, taxes other than income taxes were: For the Years Ended December 31,(Millions of Dollars)20232022VariationProperty taxes$2,503$2,318$185State and local taxes related to revenue receipts409411(2)Payroll taxes77707Other taxes(43)88(131)Total$2,946(a)$2,887(a)$59 (a)Including sales tax on customers' bills, total taxes other than income taxes in 2023 and 2022 were $3,652 million and $3,548 million, respectively. **Current (2025):** At $3,173 million, taxes other than income taxes remain one of CECONY's largest operating expenses. The principal components of, and variations in, taxes other than income taxes were: For the Years Ended December 31,(Millions of Dollars)20242023VariationProperty taxes$2,738$2,503$235State and local taxes related to revenue receipts42940920Payroll taxes83776Other 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. (b)Including the deferral of under-collected property taxes in 2024 and 2023 of $83 million and $50 million, respectively. --- ## Modified: (In Millions, except for dividends per share) **Key changes:** - Reworded sentence: "Additional Paid-In Capital Retained Earnings Capital Stock Expense Common stock dividends ($3.16 per share) Common stock dividends ($3.24 per share) Common stock dividends ($3.32 per share) The accompanying notes are an integral part of these financial statements." **Prior (2024):** Additional Paid-In Capital Retained Earnings Capital Stock Expense **Current (2025):** Additional Paid-In Capital Retained Earnings Capital Stock Expense Common stock dividends ($3.16 per share) Common stock dividends ($3.24 per share) Common stock dividends ($3.32 per share) The accompanying notes are an integral part of these financial statements. 92CON EDISON ANNUAL REPORT 2024 92CON EDISON ANNUAL REPORT 2024 92CON EDISON ANNUAL REPORT 2024 92 --- ## Modified: Consolidated Statement of Capitalization **Key changes:** - Reworded sentence: "LONG-TERM DEBT (Millions of Dollars) At December 31,MaturityInterest RateSeries20242023DEBENTURES:20243.302014B$ - $25020262.902016B25025020276.501997F808020273.1252017B35035020274.825(a)2024C350 - 20283.802018A30030020284.002018D50050020292.942019B444420303.352020A60060020302.022020A 353520312.402021A90090020312.312021A454520325.702022A10010020335.8752003A17517520335.102003C20020020335.202023A50050020345.702004B20020020345.502023B60060020345.3752024A400 - 20355.302005A35035020355.252005B12512520355.1252024D450 - 20365.852006A40040020366.202006B40040020365.702006E25025020376.302007A52552520386.752008B60060020396.002009B606020395.502009C60060020393.462019C383820405.702010B35035020405.502010B11511520424.202012A40040020433.952013A70070020444.452014A85085020454.502015A65065020454.952015A12012020454.692015B10010020463.852016A55055020463.882016A757520473.8752017A50050020484.652018E60060020484.352018A12512520484.352018B252520494.1252019A70070020493.732019A434320503.952020B1,0001,00020503.242020B404020513.172021B303020513.202021C60060020526.152022A700700" **Prior (2024):** Shares outstandingDecember 31,At December 31,(In Millions)2023202220232022TOTAL EQUITY BEFORE ACCUMULATED OTHER COMPREHENSIVE INCOME 345355$21,136$20,665Pension plan liability adjustments, net of taxes2323Unrealized losses on derivatives qualified as cash flow hedges, less reclassification adjustment for gains/(losses) included in net income and reclassification adjustment for unrealized losses included in regulatory assets, net of taxes (1)(1)TOTAL ACCUMULATED OTHER COMPREHENSIVE INCOME, NET OF TAXES2222Equity21,15820,687Noncontrolling interest - 202TOTAL EQUITY (See Statement of Equity) $21,158$20,889 **Current (2025):** Shares outstandingDecember 31,At December 31,(In Millions)2024202320242023TOTAL EQUITY BEFORE ACCUMULATED OTHER COMPREHENSIVE INCOME 347345$21,933$21,136Pension and other postretirement benefit plan liability adjustments, net of taxes3023Unrealized losses on derivatives qualified as cash flow hedges, less reclassification adjustment for gains (losses) included in net income and reclassification adjustment for unrealized losses included in regulatory assets, net of taxes (1)(1)TOTAL ACCUMULATED OTHER COMPREHENSIVE INCOME, NET OF TAXES2922TOTAL EQUITY (See Statement of Equity) $21,962$21,158 --- ## Modified: Earnings Per Share **Key changes:** - Reworded sentence: "Potentially dilutive securities for Con Edison consist of restricted stock units and deferred stock units for which the average market price of the common shares for the period was greater than the estimated vesting price (see Note O) and its common shares that are subject to forward sale agreement (see Note C)." **Prior (2024):** Con Edison presents basic and diluted earnings per share (EPS) on the face of its consolidated income statement. Basic EPS is calculated by dividing earnings available to common shareholders ("Net income for common stock" on Con Edison's consolidated income statement) by the weighted average number of Con Edison common shares outstanding during the period. In the calculation of diluted EPS, weighted average shares outstanding are increased for additional shares that would be outstanding if potentially dilutive securities were converted to common stock. Potentially dilutive securities for Con Edison consist of restricted stock units and deferred stock units for which the average market price of the common shares for the period was greater than the exercise price (see Note O). Basic and diluted EPS for Con Edison are calculated as follows: For the Years Ended December 31,(Millions of Dollars, except per share amounts/Shares in Millions)202320222021Net income for common stock$2,519$1,660$1,346Weighted average common shares outstanding - basic347.7354.5348.4Add: Incremental shares attributable to effect of potentially dilutive securities1.61.31.0Adjusted weighted average common shares outstanding - diluted349.3355.8349.4Net Income per common share - basic$7.25$4.68$3.86Net Income per common share - diluted$7.21$4.66$3.85 The computation of diluted EPS for the years ended December 31, 2021 excludes immaterial amounts of performance share awards that were not included because of their anti-dilutive effect. Estimates **Current (2025):** Con Edison presents basic and diluted earnings per share (EPS) on the face of its consolidated income statement. Basic EPS is calculated by dividing earnings available to common shareholders ("Net income for common stock" on Con Edison's consolidated income statement) by the weighted average number of Con Edison common shares outstanding during the period. In the calculation of diluted EPS, weighted average shares outstanding are increased for additional shares that would be outstanding if potentially dilutive securities were converted to common stock. Potentially dilutive securities for Con Edison consist of restricted stock units and deferred stock units for which the average market price of the common shares for the period was greater than the estimated vesting price (see Note O) and its common shares that are subject to forward sale agreement (see Note C). Before the issuance of common shares upon settlement of the forward sale agreement, the shares will be reflected in the company's diluted earnings per share calculations using the treasury stock method. Under this method, the number of common shares used in calculating diluted earnings per share is deemed to be increased by the excess, if any, of the number of shares that would be issued upon physical settlement of the forward sale agreement over the number of shares that could be purchased by the company in the market (based on the average market price during the period) using the proceeds due upon physical settlement (based on the adjusted forward sale price at the end of the reporting period). CON EDISON ANNUAL REPORT 2024113 CON EDISON ANNUAL REPORT 2024113 CON EDISON ANNUAL REPORT 2024113 113 Basic and diluted EPS for Con Edison are calculated as follows: For the Years Ended December 31,(Millions of Dollars, except per share amounts/Shares in Millions)202420232022Net income for common stock$1,820$2,519$1,660Weighted average common shares outstanding - basic346.0347.7354.5Add: Incremental shares attributable to effect of potentially dilutive securities1.31.61.3Adjusted weighted average common shares outstanding - diluted347.3349.3355.8Net Income per common share - basic$5.26$7.25$4.68Net Income per common share - diluted$5.24$7.21$4.66 The computation of diluted EPS for the year ended December 31, 2024 excludes immaterial amounts of performance share awards that were not included because of their anti-dilutive effect. Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. --- ## Modified: Loss Attributable to Non-Controlling Interest **Key changes:** - Reworded sentence: "Loss attributable to non-controlling interest decreased $3 million in 2024 compared with 2023 primarily due to the sale of all of the stock of the Clean Energy Businesses." **Prior (2024):** Loss attributable to non-controlling interest decreased $57 million to a loss of $3 million in 2023 compared with 2022 primarily due to the sale of the Clean Energy Businesses. 64CON EDISON ANNUAL REPORT 2023 64CON EDISON ANNUAL REPORT 2023 64CON EDISON ANNUAL REPORT 2023 64 CON EDISON ANNUAL REPORT 2023 **Current (2025):** Loss attributable to non-controlling interest decreased $3 million in 2024 compared with 2023 primarily due to the sale of all of the stock of the Clean Energy Businesses. 68CON EDISON ANNUAL REPORT 2024 68CON EDISON ANNUAL REPORT 2024 68CON EDISON ANNUAL REPORT 2024 68 --- ## Modified: Consolidated Statement of Comprehensive Income **Key changes:** - Reworded sentence: "For the Years Ended December 31,(Millions of Dollars)202420232022NET INCOME$1,820$2,516$1,600LOSS ATTRIBUTABLE TO NON-CONTROLLING INTEREST - 360OTHER COMPREHENSIVE INCOME, NET OF TAXESPension and other postretirement benefit plan liability adjustments, net of taxes7 - 16Other income, net of taxes - - 1TOTAL OTHER COMPREHENSIVE INCOME, NET OF TAXES7 - 17COMPREHENSIVE INCOME$1,827$2,519$1,677" **Prior (2024):** For the Years Ended December 31,(Millions of Dollars)202320222021NET INCOME$2,516$1,600$1,193LOSS ATTRIBUTABLE TO NON-CONTROLLING INTEREST 360153OTHER COMPREHENSIVE INCOME, NET OF TAXESPension and other postretirement benefit plan liability adjustments, net of taxes - 1630Other income, net of taxes - 1 - TOTAL OTHER COMPREHENSIVE INCOME, NET OF TAXES - 1730COMPREHENSIVE INCOME$2,519$1,677$1,376 **Current (2025):** For the Years Ended December 31,(Millions of Dollars)202420232022NET INCOME$1,820$2,516$1,600LOSS ATTRIBUTABLE TO NON-CONTROLLING INTEREST - 360OTHER COMPREHENSIVE INCOME, NET OF TAXESPension and other postretirement benefit plan liability adjustments, net of taxes7 - 16Other income, net of taxes - - 1TOTAL OTHER COMPREHENSIVE INCOME, NET OF TAXES7 - 17COMPREHENSIVE INCOME$1,827$2,519$1,677 --- ## Modified: Reclassification **Key changes:** - Added sentence: "These reclassifications include short-term debt activity within the financing section of the Con Edison Statement of Cash Flows." **Prior (2024):** Certain prior period amounts have been reclassified to conform with current period presentation. **Current (2025):** Certain prior period amounts have been reclassified to conform with current period presentation. These reclassifications include short-term debt activity within the financing section of the Con Edison Statement of Cash Flows. --- ## Modified: Year Ended December 31, 2024 Compared with Year Ended December 31, 2023 **Key changes:** - Reworded sentence: "CECONY For the Year Ended December 31, 2024 For the Year Ended December 31, 2023 (Millions of Dollars)ElectricGasSteam2024 TotalElectricGasSteam2023 Total2024-2023 VariationOperating revenues$10,717$2,834$578$14,129$10,078$2,829$569$13,476$653Purchased power2,248 - 312,2792,254 - 402,294(15)Fuel126 - 44170157 - 125282(112)Gas purchased for resale - 524 - 524 - 677 - 677(153)Other operations and maintenance2,6225282033,3532,4185272313,176177Depreciation and amortization1,4714581082,0371,3954291001,924113Taxes, other than income taxes2,4185761793,1732,2865141462,946227Operating income$1,832$748$13$2,593$1,568$682$(73)$2,177$416 Electric CECONY'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)20242023VariationOperating revenues$10,717$10,078$639Purchased power2,2482,254(6)Fuel126157(31)Other operations and maintenance2,6222,418204Depreciation and amortization1,4711,39576Taxes, other than income taxes2,4182,286132Electric operating income$1,832$1,568$264 CECONY's electric sales and deliveries in 2024 compared with 2023 were: Millions of kWh DeliveredRevenues in Millions (a) For the Years Ended For the Years Ended DescriptionDecember 31, 2024December 31, 2023VariationPercentVariationDecember 31, 2024December 31, 2023VariationPercentVariationResidential/Religious (b)11,89011,574316 2.7 %$4,240$3,483$75721.7 %Commercial/Industrial10,26710,895(628)(5.8)2,9112,7731385.0 Retail choice customers20,71520,3154002.0 2,6972,39430312.7 NYPA, Municipal Agency and other sales9,5559,472830.9 876807698.6 Other operating revenues (c) - - - - (7)621(628)LargeTotal52,42752,256171 0.3 %(d)$10,717$10,078$6396.3 % Percent Variation Percent Variation NYPA, Municipal Agency and other sales (a)Revenues from electric sales 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." - Reworded sentence: "(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." - Reworded sentence: "(c)After adjusting for variations, primarily weather prior to November 1, 2023, and billing days, steam sales and deliveries in the company's service area decreased 3.1 percent in 2024 compared with 2023." **Prior (2024):** CECONY For the Year Ended December 31, 2023 For the Year Ended December 31, 2022 (Millions of Dollars)ElectricGasSteam2023 TotalElectricGasSteam2022 Total2023-2022 VariationOperating revenues$10,078$2,829$569$13,476$9,751$2,924$593$13,268$208Purchased power2,254 - 402,2942,137 - 642,20193Fuel157 - 125282246 - 110356(74)Gas purchased for resale - 677 - 677 - 869 - 869(192)Other operations and maintenance2,4175272313,1752,3734721973,042133Depreciation and amortization1,3954291001,9241,315367961,778146Taxes, other than income taxes2,2875141462,9472,1845561472,88760Operating income$1,568$682$(73)$2,177$1,496$660$(21)$2,135$42 Electric CECONY's results of electric operations for the year ended December 31, 2023 compared with the year ended December 31, 2022 were as follows: For the Years Ended December 31,(Millions of Dollars)20232022VariationOperating revenues$10,078$9,751$327Purchased power2,2542,137117Fuel157246(89)Other operations and maintenance2,4172,37344Depreciation and amortization1,3951,31580Taxes, other than income taxes2,2872,184103Electric operating income$1,568$1,496$72 CECONY's electric sales and deliveries in 2023 compared with 2022 were: Millions of kWh DeliveredRevenues in Millions (a) For the Years Ended For the Years Ended DescriptionDecember 31, 2023December 31, 2022VariationPercentVariationDecember 31, 2023December 31, 2022VariationPercentVariationResidential/Religious (b)11,57411,875(301)(2.5)%$3,483$3,416$672.0 %Commercial/Industrial10,89510,5223733.5 2,7732,740331.2 Retail choice customers20,31521,116(801)(3.8)2,3942,526(132)(5.2)NYPA, Municipal Agency and other sales9,4729,507(35)(0.4)807751567.5 Other operating revenues (c) - - - - 62131830395.3 Total52,25653,020(764)(1.4)%(d)$10,078$9,751$3273.4 % Percent Variation Percent Variation NYPA, Municipal Agency and other sales (a)Revenues from electric sales 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. (b)"Residential/Religious" generally includes single-family dwellings, individual apartments in multi-family dwellings, religious organizations and certain other not-for-profit organizations. (c)Other electric operating revenues generally reflect changes in the revenue decoupling mechanism current asset or regulatory liability and changes in regulatory assets and liabilities in accordance with other provisions of CECONY's rate plan. (d)After adjusting for variations, primarily weather and billing days, electric delivery volumes in CECONY's service area increased 0.7 percent in 2023 compared with 2022. Operating revenues increased $327 million in 2023 compared with 2022 primarily due to an increase in revenues from the electric rate plan ($374 million) and higher purchased power expenses ($117 million), offset in part by lower fuel expenses ($89 million) and lower unbilled revenue accrual ($80 million). Purchased power expenses increased $117 million in 2023 compared with 2022 due to higher unit costs ($163 million), offset in part by lower purchased volume ($46 million). 58CON EDISON ANNUAL REPORT 2023 58CON EDISON ANNUAL REPORT 2023 58CON EDISON ANNUAL REPORT 2023 58 CON EDISON ANNUAL REPORT 2023 Fuel expenses decreased $89 million in 2023 compared with 2022 due to lower unit costs ($94 million), offset in part by higher purchased volumes from the company's electric generating facilities ($5 million). Other operations and maintenance expenses increased $44 million in 2023 compared with 2022 primarily due to higher total surcharges for assessments and fees that are collected in revenues from customers ($21 million), higher electric operations maintenance activities ($13 million) and higher health care costs ($2 million). Depreciation and amortization increased $80 million in 2023 compared with 2022 primarily due to higher electric utility plant balances. Taxes, other than income taxes increased $103 million in 2023 compared with 2022 primarily due to higher property taxes ($138 million), a higher deferral to levelize the customer bill impact of the electric rate plan ($15 million) and higher payroll taxes ($6 million), offset in part by a lower deferral of over-collected property taxes ($55 million). Gas CECONY's results of gas operations for the year ended December 31, 2023 compared with the year ended December 31, 2022 were as follows: For the Years Ended December 31,(Millions of Dollars)20232022VariationOperating revenues$2,829$2,924$(95)Gas purchased for resale677869(192)Other operations and maintenance52747255Depreciation and amortization42936762Taxes, other than income taxes514556(42)Gas operating income$682$660$22 CECONY's gas sales and deliveries, excluding off-system sales, in 2023 compared with 2022 were: Thousands of Dt Delivered Revenues in Millions (a) For the Years Ended For the Years Ended DescriptionDecember 31, 2023December 31, 2022VariationPercentVariationDecember 31, 2023December 31, 2022VariationPercentVariationResidential45,741 51,580 (5,839)(11.3)%$1,218$1,272$(54)(4.2)%General31,784 33,666 (1,882)(5.6)573578(5)(0.9)Firm transportation72,740 75,172 (2,432)(3.2)853798556.9 Total firm sales and transportation150,265 160,418 (10,153)(6.3)(b)$2,644$2,648$(4)(0.2)Interruptible sales (c)7,892 6,098 1,794 29.4 %4951(2)(3.9)%NYPA53,541 45,085 8,456 18.8 22 - - Generation plants61,453 53,262 8,191 15.4 2430(6)(20.0)Other18,925 19,186 (261)(1.4)3434 - - Other operating revenues (d) - - - - 76159(83)(52.2)Total292,076 284,049 8,027 2.8 %$2,829$2,924$(95)(3.2)% Percent Variation Percent Variation (a)Revenues from 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. (b)After adjusting for variations, primarily billing days, firm gas sales and transportation volumes in CECONY's service area increased 0.9 percent in 2023 compared with 2022. (c)Includes 2,574 thousands and 2,015 thousands of Dt for 2023 and 2022, respectively, that are also reflected in firm transportation and other. (d)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. Operating revenues decreased $95 million in 2023 compared with 2022 primarily due to lower gas purchased for resale expense ($192 million), offset in part by an increase in gas revenues under the company's gas rate plan ($89 million) and higher unbilled revenue accrual ($13 million). Gas purchased for resale decreased $192 million in 2023 compared with 2022 due to lower purchased volumes ($152 million) and unit costs ($40 million). CON EDISON ANNUAL REPORT 202359 CON EDISON ANNUAL REPORT 202359 CON EDISON ANNUAL REPORT 202359 CON EDISON ANNUAL REPORT 2023 59 Other operations and maintenance expenses increased $55 million in 2023 compared with 2022 primarily due to higher gas operations costs ($50 million) and higher municipal infrastructure support ($2 million). Depreciation and amortization increased $62 million in 2023 compared with 2022 primarily due to higher gas utility plant balances. Taxes, other than income taxes decreased $42 million in 2023 compared with 2022 primarily due to a lower deferral of over-collected property taxes ($35 million) and a lower deferral to levelize the customer bill impact of the gas rate plan ($51 million), offset in part by higher property taxes ($41 million). Steam CECONY's results of steam operations for the year ended December 31, 2023 compared with the year ended December 31, 2022 were as follows: For the Years Ended December 31,(Millions of Dollars)20232022VariationOperating revenues$569$593$(24)Purchased power4064(24)Fuel12511015Other operations and maintenance23119734Depreciation and amortization100964Taxes, other than income taxes146147(1)Steam operating income$(73)$(21)$(52) CECONY's steam sales and deliveries in 2023 compared with 2022 were: Millions of Pounds DeliveredRevenues in Millions (a) For the Years Ended For the Years Ended DescriptionDecember 31, 2023December 31, 2022VariationPercentVariationDecember 31, 2023December 31, 2022VariationPercentVariationGeneral428 513 (85)(16.6)%$25$27$(2)(7.4)%Apartment house4,657 5,122 (465)(9.1)150155(5)(3.2)Annual power10,359 11,792 (1,433)(12.2)363391(28)(7.2)Other operating revenues (b) - - - - 31201155.0 Total15,444 17,427 (1,983)(11.4)%(c)$569$593$(24)(4.0)% Percent Variation Percent Variation (a)Effective November 1, 2023, revenues from steam sales are subject to a weather normalization clause, as a result of which, delivery revenues reflect normal weather conditions during the heating season. (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 area decreased 0.1 percent in 2023 compared with 2022. Operating revenues decreased $24 million in 2023 compared with 2022 primarily due to lower purchased power expenses ($24 million) and the impact of milder than normal weather ($27 million), offset in part by higher fuel expenses ($15 million), benefit from the new steam rate plan ($11 million) and tax law sur-credit ($4 million). Purchased power expenses decreased $24 million in 2023 compared with 2022 due to lower unit costs ($26 million), offset in part by higher purchased volumes ($2 million). Fuel expenses increased $15 million in 2023 compared with 2022 due to higher unit costs ($38 million), offset in part by lower purchased volumes from the company's steam generating facilities ($23 million). Other operations and maintenance expenses increased $34 million in 2023 compared with 2022 primarily due to higher costs for pension and other postretirement benefits, reflecting reconciliation to the rate plan level ($16 million), higher steam operations maintenance activities ($9 million) and an increase in municipal infrastructure support ($5 million). Depreciation and amortization increased $4 million in 2023 compared with 2022 primarily due to higher steam utility plant balances. 60CON EDISON ANNUAL REPORT 2023 60CON EDISON ANNUAL REPORT 2023 60CON EDISON ANNUAL REPORT 2023 60 CON EDISON ANNUAL REPORT 2023 **Current (2025):** CECONY For the Year Ended December 31, 2024 For the Year Ended December 31, 2023 (Millions of Dollars)ElectricGasSteam2024 TotalElectricGasSteam2023 Total2024-2023 VariationOperating revenues$10,717$2,834$578$14,129$10,078$2,829$569$13,476$653Purchased power2,248 - 312,2792,254 - 402,294(15)Fuel126 - 44170157 - 125282(112)Gas purchased for resale - 524 - 524 - 677 - 677(153)Other operations and maintenance2,6225282033,3532,4185272313,176177Depreciation and amortization1,4714581082,0371,3954291001,924113Taxes, other than income taxes2,4185761793,1732,2865141462,946227Operating income$1,832$748$13$2,593$1,568$682$(73)$2,177$416 Electric CECONY'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)20242023VariationOperating revenues$10,717$10,078$639Purchased power2,2482,254(6)Fuel126157(31)Other operations and maintenance2,6222,418204Depreciation and amortization1,4711,39576Taxes, other than income taxes2,4182,286132Electric operating income$1,832$1,568$264 CECONY's electric sales and deliveries in 2024 compared with 2023 were: Millions of kWh DeliveredRevenues in Millions (a) For the Years Ended For the Years Ended DescriptionDecember 31, 2024December 31, 2023VariationPercentVariationDecember 31, 2024December 31, 2023VariationPercentVariationResidential/Religious (b)11,89011,574316 2.7 %$4,240$3,483$75721.7 %Commercial/Industrial10,26710,895(628)(5.8)2,9112,7731385.0 Retail choice customers20,71520,3154002.0 2,6972,39430312.7 NYPA, Municipal Agency and other sales9,5559,472830.9 876807698.6 Other operating revenues (c) - - - - (7)621(628)LargeTotal52,42752,256171 0.3 %(d)$10,717$10,078$6396.3 % Percent Variation Percent Variation NYPA, Municipal Agency and other sales (a)Revenues from electric sales 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. (b)"Residential/Religious" generally includes single-family dwellings, individual apartments in multi-family dwellings, religious organizations and certain other not-for-profit organizations. (c)Other electric operating revenues generally reflect changes in the revenue decoupling mechanism current asset or regulatory liability and changes in regulatory assets and liabilities in accordance with other provisions of CECONY's rate plan. (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. Operating revenues increased $639 million in 2024 compared with 2023 primarily due to an increase in revenues from the electric rate plan ($558 million) and a change in incentives earned under the earnings adjustment mechanisms ($18 million). Purchased power expenses decreased $6 million in 2024 compared with 2023 due to lower unit costs ($88 million), offset in part by higher purchased volume ($82 million). 62CON EDISON ANNUAL REPORT 2024 62CON EDISON ANNUAL REPORT 2024 62CON EDISON ANNUAL REPORT 2024 62 Fuel expenses decreased $31 million in 2024 compared with 2023 due to lower unit costs ($23 million) and lower purchased volumes from the company's electric generating facilities ($8 million). Other operations and maintenance expenses increased $204 million in 2024 compared with 2023 primarily due to higher total surcharges for assessments and fees that are collected in revenues from customers ($83 million), uncollectible expenses ($35 million), electric operations maintenance activities ($22 million), costs for injuries and damages ($11 million) and the 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 in 2024 ($6 million) and higher health care costs ($4 million). Depreciation and amortization expenses increased $76 million in 2024 compared with 2023 primarily due to higher electric utility plant balances. Taxes, other than income taxes increased $132 million in 2024 compared with 2023 primarily due to higher property taxes ($185 million) and higher state and local revenue taxes ($25 million), offset in part by a higher deferral of under-collected property taxes ($82 million). Gas CECONY'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)20242023VariationOperating revenues$2,834$2,829$5Gas purchased for resale524677(153)Other operations and maintenance5285271Depreciation and amortization45842929Taxes, other than income taxes57651462Gas operating income$748$682$66 CECONY's gas sales and deliveries, excluding off-system sales, in 2024 compared with 2023 were: Thousands of Dt Delivered Revenues in Millions (a) For the Years Ended For the Years Ended DescriptionDecember 31, 2024December 31, 2023VariationPercentVariationDecember 31, 2024December 31, 2023VariationPercentVariationResidential44,280 45,741 (1,461)(3.2)%$1,148$1,218$(70)(5.7)%General30,223 31,784 (1,561)(4.9)640573 6711.7 Firm transportation71,521 72,740 (1,219)(1.7)914853 617.2 Total firm sales and transportation146,024 150,265 (4,241)(2.8)(b)2,7022,644 582.2 Interruptible sales2,959 7,892 (4,933)(62.5)%2849 (21)(42.9)%NYPA56,291 53,541 2,750 5.1 22 - - Generation plants61,250 61,453 (203)(0.3)2224 (2)(8.3)Other18,680 18,925 (245)(1.3)3834 411.8 Other operating revenues (c) - - - - 4276 (34)(44.7)Total285,204 292,076 (6,872)(2.4)%$2,834$2,829$50.2 % Percent Variation Percent Variation Interruptible sales Other operating revenues (c) (a)Revenues from 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. (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. (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. Operating revenues increased $5 million in 2024 compared with 2023 primarily due to an increase in gas revenues under the company's gas rate plan ($215 million), offset in part by lower gas purchased for resale expense ($153 million), lower unbilled revenue accrual ($24 million), higher interest accrual on net plant reconciliation ($16 million) and timing of a gas revenue reconciliation ($11 million). Gas purchased for resale decreased $153 million in 2024 compared with 2023 due to lower unit costs ($219 million), offset in part by higher purchased volumes ($66 million). CON EDISON ANNUAL REPORT 202463 CON EDISON ANNUAL REPORT 202463 CON EDISON ANNUAL REPORT 202463 63 Depreciation and amortization expenses increased $29 million in 2024 compared with 2023 primarily due to higher gas utility plant balances. Taxes, other than income taxes increased $62 million in 2024 compared with 2023 primarily due to higher property taxes ($44 million) and lower deferral of under-collected property taxes ($24 million), offset in part by lower state and local revenue taxes ($6 million). Steam CECONY's results of steam 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)20242023VariationOperating revenues$578$569$9Purchased power3140(9)Fuel44125(81)Other operations and maintenance203231(28)Depreciation and amortization1081008Taxes, other than income taxes17914633Steam operating income$13$(73)$86 CECONY's steam sales and deliveries in 2024 compared with 2023 were: Millions of Pounds DeliveredRevenues in Millions (a) For the Years Ended For the Years Ended DescriptionDecember 31, 2024December 31, 2023VariationPercentVariationDecember 31, 2024December 31, 2023VariationPercentVariationGeneral428 428 - - $31$25$624.0 %Apartment house4,880 4,657 223 4.8 162150 128.0 Annual power10,186 10,359 (173)(1.7)395363328.8 Other operating revenues (b) - - - - (10)31 (41)LargeTotal15,494 15,444 50 0.3 %(c)$578$569$91.6 % Percent Variation Percent Variation (a)Effective November 1, 2023, revenues from steam sales are subject to a weather normalization clause, as a result of which, delivery revenues reflect normal weather conditions during the heating season. (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 area decreased 3.1 percent in 2024 compared with 2023. Operating revenues increased $9 million in 2024 compared with 2023 primarily due to the benefit from the new steam rate plan ($97 million), offset in part by lower fuel expenses ($81 million) and lower purchased power expenses ($9 million). Purchased power expenses decreased $9 million in 2024 compared with 2023 due to lower unit costs ($9 million). Fuel expenses decreased $81 million in 2024 compared with 2023 due to lower unit costs ($83 million), offset in part by higher purchased volumes used from the company's steam generating facilities ($2 million). Other operations and maintenance expenses decreased $28 million in 2024 compared with 2023 primarily due to lower costs for pension and other postretirement benefits, reflecting reconciliation to the rate plan level ($53 million), offset in part by an increase in municipal infrastructure support ($7 million), the 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 in 2024 ($6 million), higher total surcharges for assessments and fees that are collected in revenues from customers ($1 million) and higher health care costs ($1 million). Depreciation and amortization expenses increased $8 million in 2024 compared with 2023 primarily due to higher steam utility plant balances. Taxes, other than income taxes increased $33 million in 2024 compared with 2023 primarily due to a lower deferral of under-collected property taxes ($24 million), higher property taxes ($6 million) and higher state and local taxes ($2 million). 64CON EDISON ANNUAL REPORT 2024 64CON EDISON ANNUAL REPORT 2024 64CON EDISON ANNUAL REPORT 2024 64 --- ## Modified: Supplementary Financial Information **Key changes:** - Reworded sentence: "Con Edison Report of Management on Internal Control Over Financial Reporting 84 Report of Independent Registered Public Accounting Firm (PCAOB ID 238) 85 Consolidated Income Statement for the years ended December 31, 2024, 2023, and 2022 87 Consolidated Statement of Comprehensive Income for the years ended December 31, 2024, 2023, and 2022 88 Consolidated Statement of Cash Flows for the years ended December 31, 2024, 2023, and 2022 89 Consolidated Balance Sheet at December 31, 2024 and 2023 90 Consolidated Statement of Equity for the years ended December 31, 2024, 2023, and 2022 92 Consolidated Statement of Capitalization at December 31, 2024 and 2023 93 CECONY Report of Management on Internal Control Over Financial Reporting 96 Report of Independent Registered Public Accounting Firm (PCAOB ID 238) 97 Consolidated Income Statement for the years ended December 31, 2024, 2023, and 2022 99 Consolidated Statement of Comprehensive Income for the years ended December 31, 2024, 2023, and 2022 100 Consolidated Statement of Cash Flows for the years ended December 31, 2024, 2023, and 2022 101 Consolidated Balance Sheet at December 31, 2024 and 2023 102 Consolidated Statement of Shareholder's Equity for the years ended December 31, 2024, 2023, and 2022 104 Consolidated Statement of Capitalization at December 31, 2024 and 2023 105" **Prior (2024):** Con Edison Report of Management on Internal Control Over Financial Reporting 81 Report of Independent Registered Public Accounting Firm (PCAOB ID 238) 82 Consolidated Income Statement for the years ended December 31, 2023, 2022, and 2021 84 Consolidated Statement of Comprehensive Income for the years ended December 31, 2023, 2022, and 2021 85 Consolidated Statement of Cash Flows for the years ended December 31, 2023, 2022, and 2021 86 Consolidated Balance Sheet at December 31, 2023 and 2022 87 Consolidated Statement of Equity for the years ended December 31, 2023, 2022, and 2021 89 Consolidated Statement of Capitalization at December 31, 2023 and 2022 90 CECONY Report of Management on Internal Control Over Financial Reporting 93 Report of Independent Registered Public Accounting Firm (PCAOB ID 238) 94 Consolidated Income Statement for the years ended December 31, 2023, 2022, and 2021 96 Consolidated Statement of Comprehensive Income for the years ended December 31, 2023, 2022, and 2021 97 Consolidated Statement of Cash Flows for the years ended December 31, 2023, 2022, and 2021 98 Consolidated Balance Sheet at December 31, 2023 and 2022 99 Consolidated Statement of Shareholder's Equity for the years ended December 31, 2023, 2022, and 2021 101 Consolidated Statement of Capitalization at December 31, 2023 and 2022 102 **Current (2025):** Con Edison Report of Management on Internal Control Over Financial Reporting 84 Report of Independent Registered Public Accounting Firm (PCAOB ID 238) 85 Consolidated Income Statement for the years ended December 31, 2024, 2023, and 2022 87 Consolidated Statement of Comprehensive Income for the years ended December 31, 2024, 2023, and 2022 88 Consolidated Statement of Cash Flows for the years ended December 31, 2024, 2023, and 2022 89 Consolidated Balance Sheet at December 31, 2024 and 2023 90 Consolidated Statement of Equity for the years ended December 31, 2024, 2023, and 2022 92 Consolidated Statement of Capitalization at December 31, 2024 and 2023 93 CECONY Report of Management on Internal Control Over Financial Reporting 96 Report of Independent Registered Public Accounting Firm (PCAOB ID 238) 97 Consolidated Income Statement for the years ended December 31, 2024, 2023, and 2022 99 Consolidated Statement of Comprehensive Income for the years ended December 31, 2024, 2023, and 2022 100 Consolidated Statement of Cash Flows for the years ended December 31, 2024, 2023, and 2022 101 Consolidated Balance Sheet at December 31, 2024 and 2023 102 Consolidated Statement of Shareholder's Equity for the years ended December 31, 2024, 2023, and 2022 104 Consolidated Statement of Capitalization at December 31, 2024 and 2023 105 --- ## Modified: Material Contingencies **Key changes:** - Reworded sentence: "CON EDISON ANNUAL REPORT 202481 CON EDISON ANNUAL REPORT 202481 CON EDISON ANNUAL REPORT 202481 81 Item 7A: Quantitative and Qualitative Disclosures about Market Risk Con Edison For information about Con Edison's primary market risks associated with activities in derivative financial instruments, other financial instruments and derivative commodity instruments, see "Financial and Commodity Market Risks," in Item 7 (which information is incorporated herein by reference)." - Reworded sentence: "82CON EDISON ANNUAL REPORT 2024 82CON EDISON ANNUAL REPORT 2024 82CON EDISON ANNUAL REPORT 2024 82 Item 8: Financial Statements and Supplementary Data Financial StatementsPageSupplementary Financial InformationCon EdisonReport of Management on Internal Control Over Financial Reporting84Report of Independent Registered Public Accounting Firm (PCAOB ID 238)85Consolidated Income Statement for the years ended December 31, 2024, 2023, and 202287Consolidated Statement of Comprehensive Income for the years ended December 31, 2024, 2023, and 202288Consolidated Statement of Cash Flows for the years ended December 31, 2024, 2023, and 202289Consolidated Balance Sheet at December 31, 2024 and 202390Consolidated Statement of Equity for the years ended December 31, 2024, 2023, and 202292Consolidated Statement of Capitalization at December 31, 2024 and 202393CECONYReport of Management on Internal Control Over Financial Reporting96Report of Independent Registered Public Accounting Firm (PCAOB ID 238)97Consolidated Income Statement for the years ended December 31, 2024, 2023, and 202299Consolidated Statement of Comprehensive Income for the years ended December 31, 2024, 2023, and 2022100Consolidated Statement of Cash Flows for the years ended December 31, 2024, 2023, and 2022101Consolidated Balance Sheet at December 31, 2024 and 2023102Consolidated Statement of Shareholder's Equity for the years ended December 31, 2024, 2023, and 2022104Consolidated Statement of Capitalization at December 31, 2024 and 2023105Notes to the Financial Statements107Note A - Summary of Significant Accounting Policies108Note B - Regulatory Matters115Note C - Capitalization133Note D - Short-Term Borrowing135Note E - Pension Benefits136Note F - Other Postretirement Benefits141Note G - Environmental Matters146Note H - Material Contingencies148Note I - Electricity and Gas Purchase Agreements149Note J - Leases150Note K - Goodwill152Note L - Income Tax152Note M - Revenue Recognition156Note N - Current Expected Credit Losses157Note O - Stock-Based Compensation158Note P - Financial Information by Business Segment162Note Q - Derivative Instruments and Hedging Activities165Note R - Fair Value Measurements167Note S - Variable Interest Entities170Note T - Asset Retirement Obligations171Note U - Related Party Transactions172Note V - New Financial Accounting Standards173Note W - Dispositions173Note X - Held-for-Sale Treatment of the Clean Energy Businesses175Financial Statement SchedulesCon EdisonSchedule I - Condensed Financial Information of Consolidated Edison, Inc." **Prior (2024):** 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. 78CON EDISON ANNUAL REPORT 2023 78CON EDISON ANNUAL REPORT 2023 78CON EDISON ANNUAL REPORT 2023 78 CON EDISON ANNUAL REPORT 2023 Item 7A: Quantitative and Qualitative Disclosures about Market Risk Con Edison For information about Con Edison's primary market risks associated with activities in derivative financial instruments, other financial instruments and derivative commodity instruments, see "Financial and Commodity Market Risks," in Item 7 (which information is incorporated herein by reference). See also "The Companies Require Access To Capital Markets To Satisfy Funding Requirements," in Item 1A. CECONY For information about CECONY's primary market risks associated with activities in derivative financial instruments, other financial instruments and derivative commodity instruments, see "Financial and Commodity Market Risks" in Item 7 (which information is incorporated herein by reference). See also "The Companies Require Access To Capital Markets To Satisfy Funding Requirements," in Item 1A. CON EDISON ANNUAL REPORT 202379 CON EDISON ANNUAL REPORT 202379 CON EDISON ANNUAL REPORT 202379 CON EDISON ANNUAL REPORT 2023 79 Item 8: Financial Statements and Supplementary Data Financial StatementsPageSupplementary Financial InformationCon EdisonReport of Management on Internal Control Over Financial Reporting81Report of Independent Registered Public Accounting Firm (PCAOB ID 238)82Consolidated Income Statement for the years ended December 31, 2023, 2022, and 202184Consolidated Statement of Comprehensive Income for the years ended December 31, 2023, 2022, and 202185Consolidated Statement of Cash Flows for the years ended December 31, 2023, 2022, and 202186Consolidated Balance Sheet at December 31, 2023 and 202287Consolidated Statement of Equity for the years ended December 31, 2023, 2022, and 202189Consolidated Statement of Capitalization at December 31, 2023 and 202290CECONYReport of Management on Internal Control Over Financial Reporting93Report of Independent Registered Public Accounting Firm (PCAOB ID 238)94Consolidated Income Statement for the years ended December 31, 2023, 2022, and 202196Consolidated Statement of Comprehensive Income for the years ended December 31, 2023, 2022, and 202197Consolidated Statement of Cash Flows for the years ended December 31, 2023, 2022, and 202198Consolidated Balance Sheet at December 31, 2023 and 202299Consolidated Statement of Shareholder's Equity for the years ended December 31, 2023, 2022, and 2021101Consolidated Statement of Capitalization at December 31, 2023 and 2022102Notes to the Financial Statements104Financial Statement SchedulesCon EdisonSchedule I - Condensed Financial Information of Consolidated Edison, Inc. at December 31, 2023 and 2022 and for the years ended December 31, 2023, 2022, and 2021173 **Current (2025):** 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 202481 CON EDISON ANNUAL REPORT 202481 CON EDISON ANNUAL REPORT 202481 81 Item 7A: Quantitative and Qualitative Disclosures about Market Risk Con Edison For information about Con Edison's primary market risks associated with activities in derivative financial instruments, other financial instruments and derivative commodity instruments, see "Financial and Commodity Market Risks," in Item 7 (which information is incorporated herein by reference). See also "The Companies Require Access To Capital Markets To Satisfy Funding Requirements," in Item 1A. CECONY For information about CECONY's primary market risks associated with activities in derivative financial instruments, other financial instruments and derivative commodity instruments, see "Financial and Commodity Market Risks" in Item 7 (which information is incorporated herein by reference). See also "The Companies Require Access To Capital Markets To Satisfy Funding Requirements," in Item 1A. 82CON EDISON ANNUAL REPORT 2024 82CON EDISON ANNUAL REPORT 2024 82CON EDISON ANNUAL REPORT 2024 82 Item 8: Financial Statements and Supplementary Data Financial StatementsPageSupplementary Financial InformationCon EdisonReport of Management on Internal Control Over Financial Reporting84Report of Independent Registered Public Accounting Firm (PCAOB ID 238)85Consolidated Income Statement for the years ended December 31, 2024, 2023, and 202287Consolidated Statement of Comprehensive Income for the years ended December 31, 2024, 2023, and 202288Consolidated Statement of Cash Flows for the years ended December 31, 2024, 2023, and 202289Consolidated Balance Sheet at December 31, 2024 and 202390Consolidated Statement of Equity for the years ended December 31, 2024, 2023, and 202292Consolidated Statement of Capitalization at December 31, 2024 and 202393CECONYReport of Management on Internal Control Over Financial Reporting96Report of Independent Registered Public Accounting Firm (PCAOB ID 238)97Consolidated Income Statement for the years ended December 31, 2024, 2023, and 202299Consolidated Statement of Comprehensive Income for the years ended December 31, 2024, 2023, and 2022100Consolidated Statement of Cash Flows for the years ended December 31, 2024, 2023, and 2022101Consolidated Balance Sheet at December 31, 2024 and 2023102Consolidated Statement of Shareholder's Equity for the years ended December 31, 2024, 2023, and 2022104Consolidated Statement of Capitalization at December 31, 2024 and 2023105Notes to the Financial Statements107Note A - Summary of Significant Accounting Policies108Note B - Regulatory Matters115Note C - Capitalization133Note D - Short-Term Borrowing135Note E - Pension Benefits136Note F - Other Postretirement Benefits141Note G - Environmental Matters146Note H - Material Contingencies148Note I - Electricity and Gas Purchase Agreements149Note J - Leases150Note K - Goodwill152Note L - Income Tax152Note M - Revenue Recognition156Note N - Current Expected Credit Losses157Note O - Stock-Based Compensation158Note P - Financial Information by Business Segment162Note Q - Derivative Instruments and Hedging Activities165Note R - Fair Value Measurements167Note S - Variable Interest Entities170Note T - Asset Retirement Obligations171Note U - Related Party Transactions172Note V - New Financial Accounting Standards173Note W - Dispositions173Note X - Held-for-Sale Treatment of the Clean Energy Businesses175Financial Statement SchedulesCon EdisonSchedule I - Condensed Financial Information of Consolidated Edison, Inc. at December 31, 2024 and 2023 and for the years ended December 31, 2024, 2023, and 2022176 --- ## Modified: Other Income **Key changes:** - Reworded sentence: "Other income decreased $17 million in 2024 compared with 2023 primarily due to lower credits associated with components of pension and other postretirement benefits other than service cost ($17 million)." **Prior (2024):** Other income increased $400 million in 2023 compared with 2022 primarily due to lower costs associated with components of pension and other postretirement benefits other than service cost ($370 million) and higher interest accrual from hedging activities ($4 million). **Current (2025):** 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). --- ## Modified: Income Tax Expense **Key changes:** - Reworded sentence: "Income taxes decreased $44 million in 2024 compared with 2023 primarily due to higher amortization of excess deferred federal income taxes ($31 million) and the absence in 2024 of a remeasurement of state deferred income tax assets and liabilities as a result of the enacted New York State legislation in 2023 ($10 million)." - Reworded sentence: "(d)After adjusting for weather and other variations, electric delivery volumes in O&R's service area increased 2.7 percent in 2024 compared with 2023." **Prior (2024):** Income taxes increased $103 million in 2023 compared with 2022 primarily due to higher income before income tax expense ($83 million), a remeasurement of state deferred tax assets and liabilities as a result of the enacted New York State legislation ($10 million), a decrease in the amortization of excess deferred federal income taxes due to the TCJA ($7 million) and higher reserve for injuries and damages ($3 million). O&R For the Year Ended December 31, 2023 For the Year Ended December 31, 2022 (Millions of Dollars)ElectricGas2023 TotalElectricGas2022 Total2023-2022VariationOperating revenues$759$297$1,056$773$312$1,085$(29)Purchased power247 - 247276 - 276(29)Gas purchased for resale - 111111 - 135135(24)Other operations and maintenance292833752757635124Depreciation and amortization76301067127988Taxes, other than income taxes5932915732892Operating income$85$41$126$94$42$136$(10) Electric O&R's results of electric operations for the year ended December 31, 2023 compared with the year ended December 31, 2022 were as follows: For the Years Ended December 31,(Millions of Dollars)20232022VariationOperating revenues$759$773$(14)Purchased power247276(29)Other operations and maintenance29227517Depreciation and amortization76715Taxes, other than income taxes59572Electric operating income$85$94$(9) CON EDISON ANNUAL REPORT 202361 CON EDISON ANNUAL REPORT 202361 CON EDISON ANNUAL REPORT 202361 CON EDISON ANNUAL REPORT 2023 61 O&R's electric sales and deliveries in 2023 compared with 2022 were: Millions of kWh Delivered Revenues in Millions (a) For the Years Ended For the Years Ended DescriptionDecember 31, 2023December 31, 2022VariationPercentVariation December 31, 2023December 31, 2022VariationPercentVariationResidential/Religious (b)1,917 1,916 1 0.1 %$419$413$61.5 %Commercial/Industrial958 944 14 1.5 147147 - - Retail choice customers2,397 2,580 (183)(7.1)172198(26)(13.1)Public authorities113 113 - - 1216(4)(25.0)Other operating revenues (c) - - - - 9(1)10LargeTotal5,385 5,553 (168)(3.0)%(d)$759$773$(14)(1.8)% Percent Variation Percent Variation (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. The majority of O&R's electric distribution revenues in New Jersey are subject to a conservation incentive program, as a result of which distribution revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved. O&R's electric transmission revenues in New Jersey are not subject to a conservation incentive program, and as a result, changes in such volumes do impact revenues. (b)"Residential/Religious" generally includes single-family dwellings, individual apartments in multi-family dwellings, religious organizations and certain other not-for-profit organizations. (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 O&R's service area decreased 0.1 percent in 2023 compared with 2022. Operating revenues decreased $14 million in 2023 compared with 2022 primarily due to lower purchased power expenses ($29 million), offset in part by higher revenues from the New York electric rate plan ($10 million) and a change in incentives earned under the earnings adjustment mechanisms (EAMs) ($4 million). Purchased power expenses decreased $29 million in 2023 compared with 2022 due to lower unit costs ($20 million) and purchased volumes ($9 million). Other operations and maintenance expenses increased $17 million in 2023 compared with 2022 primarily due to higher administrative and general expenses ($6 million), higher tree trimming expenses ($3 million), higher uncollectible expenses ($2 million), higher customer assistance costs ($2 million) and higher pension costs, reflecting reconciliation to the rate plan level ($2 million). Depreciation and amortization increased $5 million in 2023 compared with 2022 primarily due to higher electric utility plant balances. Gas O&R's results of gas operations for the year ended December 31, 2023 compared with the year ended December 31, 2022 were as follows: For the Years Ended December 31,(Millions of Dollars)20232022VariationOperating revenues$297$312$(15)Gas purchased for resale111135(24)Other operations and maintenance83767Depreciation and amortization30273Taxes, other than income taxes3232 - Gas operating income$41$42$(1) O&R's gas sales and deliveries, excluding off-system sales, in 2023 compared with 2022 were: 62CON EDISON ANNUAL REPORT 2023 62CON EDISON ANNUAL REPORT 2023 62CON EDISON ANNUAL REPORT 2023 62 CON EDISON ANNUAL REPORT 2023 Thousands of Dt Delivered Revenues in Millions (a) For the Years Ended For the Years Ended DescriptionDecember 31, 2023December 31, 2022VariationPercentVariationDecember 31, 2023December 31, 2022VariationPercentVariationResidential11,428 12,588 (1,160)(9.2)%$193$207$(14)(6.8)%General2,929 2,766 163 5.9 3738(1)(2.6)Firm transportation5,055 6,396 (1,341)(21.0)3845(7)(15.6)Total firm sales and transportation19,412 21,750 (2,338)(10.7)(b) 268290(22)(7.6)Interruptible sales3,301 3,911 (610)(15.6)%66 - - Generation plants4 10 (6)(60.0) - - - - Other334 673 (339)(50.4)11 - - Other gas revenues - - - - 2215746.7 Total23,051 26,344 (3,293)(12.5)%$297$312$(15)(4.8)% Percent Variation (a)Revenues from New York gas sales 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. (b)After adjusting for weather and other variations, firm sales and transportation volumes in O&R's service area remained consistent in 2023 compared with 2022. Operating revenues decreased $15 million in 2023 compared with 2022 primarily due to lower gas purchased for resale ($24 million), offset in part by higher revenues from the New York gas rate plan ($5 million). Gas purchased for resale decreased $24 million in 2023 compared with 2022 due to lower purchased volumes ($15 million) and unit cost ($9 million). Other operations and maintenance expenses increased $7 million in 2023 compared with 2022 primarily due to higher administrative and general expenses ($2 million), higher pension costs, reflecting reconciliation to the rate plan level ($2 million) and higher uncollectible expenses ($1 million). Depreciation and amortization increased $3 million in 2023 compared with 2022 primarily due to higher gas utility plant balances. **Current (2025):** Income taxes decreased $44 million in 2024 compared with 2023 primarily due to higher amortization of excess deferred federal income taxes ($31 million) and the absence in 2024 of a remeasurement of state deferred income tax assets and liabilities as a result of the enacted New York State legislation in 2023 ($10 million). O&R For the Year Ended December 31, 2024 For the Year Ended December 31, 2023 (Millions of Dollars)ElectricGas2024 TotalElectricGas2023 Total2024-2023VariationOperating revenues$852$273$1,125$759$297$1,056$69Purchased power290 - 290247 - 24743Gas purchased for resale - 7575 - 111111(36)Other operations and maintenance306813872928337512Depreciation and amortization8235117763010611Taxes, other than income taxes6233955932914Operating 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)20242023VariationOperating revenues$852$759$93Purchased power29024743Other operations and maintenance30629214Depreciation and amortization82766Taxes, other than income taxes62593Electric operating income$112$85$27 O&R's electric sales and deliveries in 2024 compared with 2023 were: CON EDISON ANNUAL REPORT 202465 CON EDISON ANNUAL REPORT 202465 CON EDISON ANNUAL REPORT 202465 65 Millions of kWh Delivered Revenues in Millions (a) For the Years Ended For the Years Ended DescriptionDecember 31, 2024December 31, 2023VariationPercentVariation December 31, 2024December 31, 2023VariationPercentVariationResidential/Religious (b)2,133 1,917 216 11.3 %$474$419$5513.1 %Commercial/Industrial965 958 7 0.7 1671472013.6 Retail choice customers2,522 2,397 125 5.2 1981722615.1 Public authorities114 113 1 0.9 1212 - - Other operating revenues (c) - - - - 19(8)(88.9)Total5,734 5,385 349 6.5 %(d)$852$759$9312.3 % Percent Variation Percent Variation (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. The majority of O&R's electric distribution revenues in New Jersey are subject to a conservation incentive program, as a result of which distribution revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved. O&R's electric transmission revenues in New Jersey are not subject to a conservation incentive program, and as a result, changes in such volumes do impact revenues. (b)"Residential/Religious" generally includes single-family dwellings, individual apartments in multi-family dwellings, religious organizations and certain other not-for-profit organizations. (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 increased 2.7 percent in 2024 compared with 2023. Operating revenues increased $93 million in 2024 compared with 2023 primarily due to higher purchased power expenses ($43 million) and higher revenues from the New York electric rate plan ($39 million), higher revenue related to the Clean Energy Act ($3 million) and a change in incentives earned under the earnings adjustment mechanisms ($1 million). Purchased power expenses increased $43 million in 2024 compared with 2023 due to higher purchased volumes ($35 million) and unit costs ($8 million). Other operations and maintenance expenses increased $14 million in 2024 compared with 2023 primarily due to higher regulatory System Benefit Charges ($6 million), higher regulatory amortizations ($4 million), higher expenses associated with the New Jersey Clean Energy Act ($3 million) and higher tree trimming costs ($2 million). 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). 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)20242023VariationOperating revenues$273$297$(24)Gas purchased for resale75111(36)Other operations and maintenance8183(2)Depreciation and amortization35305Taxes, other than income taxes33321Gas operating income$49$41$8 O&R's gas sales and deliveries, excluding off-system sales, in 2024 compared with 2023 were: 66CON EDISON ANNUAL REPORT 2024 66CON EDISON ANNUAL REPORT 2024 66CON EDISON ANNUAL REPORT 2024 66 Thousands of Dt Delivered Revenues in Millions (a) For the Years Ended For the Years Ended DescriptionDecember 31, 2024December 31, 2023VariationPercentVariationDecember 31, 2024December 31, 2023VariationPercentVariationResidential10,749 11,428 (679)(5.9)%$166$193$(27)(14.0)%General1,767 2,929 (1,162)(39.7)2137(16)(43.2)Firm transportation4,623 5,055 (432)(8.5)3438(4)(10.5)Total firm sales and transportation17,139 19,412 (2,273)(11.7)(b) 221268(47)(17.5)Interruptible sales3,712 3,301 411 12.5 %76116.7 %Generation plants10 4 6 Large - - - - Other710 672 38 5.7 11 - - Other gas revenues - - - - 442222LargeTotal21,571 23,389 (1,818)(7.8)%$273$297$(24)(8.1)% Percent Variation (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. (b)After adjusting for weather and other variations, firm sales and transportation volumes in O&R's service area decreased 1.4 percent in 2024 compared with 2023. Operating revenues decreased $24 million in 2024 compared with 2023 primarily due to lower gas purchased for resale ($36 million), offset in part by higher revenues from the New York gas rate plan ($3 million) and a change in incentives earned under the earnings adjustment mechanisms ($2 million). Gas purchased for resale decreased $36 million in 2024 compared with 2023 due to lower purchased volumes ($18 million) and unit cost ($18 million). Other operations and maintenance expenses decreased $2 million in 2024 compared with 2023 primarily due to lower pension costs. Depreciation and amortization expenses increased $5 million in 2024 compared with 2023 primarily due to higher gas utility plant balances. --- ## Modified: Clean Energy Businesses **Key changes:** - Reworded sentence: "The Clean Energy Businesses' results of operations for the year ended December 31, 2024 compared with the year ended December 31, 2023 were as follows: For the Years Ended December 31,(Millions of Dollars)20242023VariationOperating revenues$ - $129$(129)Purchased power - - - Gas purchased for resale - 41(41)Other operations and maintenance - 48(48)Depreciation and amortization - - - Taxes, other than income taxes - 3(3)Operating income$ - $37$(37)" **Prior (2024):** On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note W and Note X to the financial statements in Item 8. The Clean Energy Businesses' results of operations for the year ended December 31, 2023 (reflecting the two months ended February 2023) compared with the year ended December 31, 2022 were as follows: For the Years Ended December 31,(Millions of Dollars)20232022VariationOperating revenues$129$1,319$(1,190)Purchased power - 7(7)Gas purchased for resale41241(200)Other operations and maintenance48504(456)Depreciation and amortization - 178(178)Taxes, other than income taxes321(18)Operating income$37$368$(331) **Current (2025):** On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note W and Note X to the financial statements in Item 8. The Clean Energy Businesses' results of 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)20242023VariationOperating revenues$ - $129$(129)Purchased power - - - Gas purchased for resale - 41(41)Other operations and maintenance - 48(48)Depreciation and amortization - - - Taxes, other than income taxes - 3(3)Operating income$ - $37$(37) --- ## Modified: Con Edison Transmission **Key changes:** - Reworded sentence: "Investments at December 31, 2024 were $54 million higher than at December 31, 2023." **Prior (2024):** Con Edison Transmission has no properties. Con Edison Transmission has ownership interests in electric and gas transmission companies. For information about these companies, see "Con Edison Transmission" in Item 1 (which information is incorporated herein by reference). Item 3: Legal Proceedings For information about certain legal proceedings affecting the Companies, see "Other Regulatory Matters" in Note B and "Superfund Sites" and "Asbestos Proceedings" in Note G and "Manhattan Explosion and Fire" in Note H to the financial statements in Item 8 and "Environmental Matters - CECONY" and "Environmental Matters - O&R" in Item 1 of this report, which information is incorporated herein by reference. Item 4: Mine Safety Disclosures Not applicable. 46CON EDISON ANNUAL REPORT 2023 46CON EDISON ANNUAL REPORT 2023 46CON EDISON ANNUAL REPORT 2023 46 CON EDISON ANNUAL REPORT 2023 **Current (2025):** Con Edison Transmission has no properties. Con Edison Transmission has ownership interests in electric and gas transmission companies. For information about these companies, see "Con Edison Transmission" in Item 1 (which information is incorporated herein by reference). Item 3: Legal Proceedings For information about certain legal proceedings affecting the Companies, see "Other Regulatory Matters" in Note B and "Superfund Sites" and "Asbestos Proceedings" in Note G and "Manhattan Explosion and Fire" in Note H to the financial statements in Item 8 and "Environmental Matters - CECONY" and "Environmental Matters - O&R" in Item 1 of this report, which information is incorporated herein by reference. Item 4: Mine Safety Disclosures Not applicable. CON EDISON ANNUAL REPORT 202451 CON EDISON ANNUAL REPORT 202451 CON EDISON ANNUAL REPORT 202451 51 --- ## Modified: Financial Statement Schedules **Key changes:** - Reworded sentence: "at December 31, 2024 and 2023 and for the years ended December 31, 2024, 2023, and 2022 176 All other schedules are omitted because they are not applicable or the required information is shown in financial statements or notes thereto." **Prior (2024):** Schedule I - Condensed Financial Information of Consolidated Edison, Inc. at December 31, 2023 and 2022 and for the years ended December 31, 2023, 2022, and 2021 173 All other schedules are omitted because they are not applicable or the required information is shown in financial statements or notes thereto. 80CON EDISON ANNUAL REPORT 2023 80CON EDISON ANNUAL REPORT 2023 80CON EDISON ANNUAL REPORT 2023 80 CON EDISON ANNUAL REPORT 2023 **Current (2025):** Schedule I - Condensed Financial Information of Consolidated Edison, Inc. at December 31, 2024 and 2023 and for the years ended December 31, 2024, 2023, and 2022 176 All other schedules are omitted because they are not applicable or the required information is shown in financial statements or notes thereto. CON EDISON ANNUAL REPORT 202483 CON EDISON ANNUAL REPORT 202483 CON EDISON ANNUAL REPORT 202483 83 --- ## Modified: Net Interest Expense **Key changes:** - Reworded sentence: "Net interest expense increased $164 million in 2024 compared with 2023 primarily due to higher interest expense for long-term debt due to higher debt balances ($142 million) and short-term debt ($3 million)." **Prior (2024):** Net interest expense increased $123 million in 2023 compared with 2022 primarily due to higher interest expense for long-term debt ($79 million) and short-term debt ($42 million). **Current (2025):** Net interest expense increased $164 million in 2024 compared with 2023 primarily due to higher interest expense for long-term debt due to higher debt balances ($142 million) and short-term debt ($3 million). --- ## Modified: Income Tax Expense **Key changes:** - Reworded sentence: "Income taxes decreased $3 million in 2024 compared with 2023 primarily due to lower income before income tax expense ($6 million) and a decrease in the valuation allowance on deferred state net operating losses ($2 million), offset in part by lower renewable energy tax credits due to the sale of all of the stock of the Clean Energy Businesses on March 1, 2023 ($5 million)." **Prior (2024):** Income taxes increased $103 million in 2023 compared with 2022 primarily due to higher income before income tax expense ($83 million), a remeasurement of state deferred tax assets and liabilities as a result of the enacted New York State legislation ($10 million), a decrease in the amortization of excess deferred federal income taxes due to the TCJA ($7 million) and higher reserve for injuries and damages ($3 million). O&R For the Year Ended December 31, 2023 For the Year Ended December 31, 2022 (Millions of Dollars)ElectricGas2023 TotalElectricGas2022 Total2023-2022VariationOperating revenues$759$297$1,056$773$312$1,085$(29)Purchased power247 - 247276 - 276(29)Gas purchased for resale - 111111 - 135135(24)Other operations and maintenance292833752757635124Depreciation and amortization76301067127988Taxes, other than income taxes5932915732892Operating income$85$41$126$94$42$136$(10) Electric O&R's results of electric operations for the year ended December 31, 2023 compared with the year ended December 31, 2022 were as follows: For the Years Ended December 31,(Millions of Dollars)20232022VariationOperating revenues$759$773$(14)Purchased power247276(29)Other operations and maintenance29227517Depreciation and amortization76715Taxes, other than income taxes59572Electric operating income$85$94$(9) CON EDISON ANNUAL REPORT 202361 CON EDISON ANNUAL REPORT 202361 CON EDISON ANNUAL REPORT 202361 CON EDISON ANNUAL REPORT 2023 61 O&R's electric sales and deliveries in 2023 compared with 2022 were: Millions of kWh Delivered Revenues in Millions (a) For the Years Ended For the Years Ended DescriptionDecember 31, 2023December 31, 2022VariationPercentVariation December 31, 2023December 31, 2022VariationPercentVariationResidential/Religious (b)1,917 1,916 1 0.1 %$419$413$61.5 %Commercial/Industrial958 944 14 1.5 147147 - - Retail choice customers2,397 2,580 (183)(7.1)172198(26)(13.1)Public authorities113 113 - - 1216(4)(25.0)Other operating revenues (c) - - - - 9(1)10LargeTotal5,385 5,553 (168)(3.0)%(d)$759$773$(14)(1.8)% Percent Variation Percent Variation (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. The majority of O&R's electric distribution revenues in New Jersey are subject to a conservation incentive program, as a result of which distribution revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved. O&R's electric transmission revenues in New Jersey are not subject to a conservation incentive program, and as a result, changes in such volumes do impact revenues. (b)"Residential/Religious" generally includes single-family dwellings, individual apartments in multi-family dwellings, religious organizations and certain other not-for-profit organizations. (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 O&R's service area decreased 0.1 percent in 2023 compared with 2022. Operating revenues decreased $14 million in 2023 compared with 2022 primarily due to lower purchased power expenses ($29 million), offset in part by higher revenues from the New York electric rate plan ($10 million) and a change in incentives earned under the earnings adjustment mechanisms (EAMs) ($4 million). Purchased power expenses decreased $29 million in 2023 compared with 2022 due to lower unit costs ($20 million) and purchased volumes ($9 million). Other operations and maintenance expenses increased $17 million in 2023 compared with 2022 primarily due to higher administrative and general expenses ($6 million), higher tree trimming expenses ($3 million), higher uncollectible expenses ($2 million), higher customer assistance costs ($2 million) and higher pension costs, reflecting reconciliation to the rate plan level ($2 million). Depreciation and amortization increased $5 million in 2023 compared with 2022 primarily due to higher electric utility plant balances. Gas O&R's results of gas operations for the year ended December 31, 2023 compared with the year ended December 31, 2022 were as follows: For the Years Ended December 31,(Millions of Dollars)20232022VariationOperating revenues$297$312$(15)Gas purchased for resale111135(24)Other operations and maintenance83767Depreciation and amortization30273Taxes, other than income taxes3232 - Gas operating income$41$42$(1) O&R's gas sales and deliveries, excluding off-system sales, in 2023 compared with 2022 were: 62CON EDISON ANNUAL REPORT 2023 62CON EDISON ANNUAL REPORT 2023 62CON EDISON ANNUAL REPORT 2023 62 CON EDISON ANNUAL REPORT 2023 Thousands of Dt Delivered Revenues in Millions (a) For the Years Ended For the Years Ended DescriptionDecember 31, 2023December 31, 2022VariationPercentVariationDecember 31, 2023December 31, 2022VariationPercentVariationResidential11,428 12,588 (1,160)(9.2)%$193$207$(14)(6.8)%General2,929 2,766 163 5.9 3738(1)(2.6)Firm transportation5,055 6,396 (1,341)(21.0)3845(7)(15.6)Total firm sales and transportation19,412 21,750 (2,338)(10.7)(b) 268290(22)(7.6)Interruptible sales3,301 3,911 (610)(15.6)%66 - - Generation plants4 10 (6)(60.0) - - - - Other334 673 (339)(50.4)11 - - Other gas revenues - - - - 2215746.7 Total23,051 26,344 (3,293)(12.5)%$297$312$(15)(4.8)% Percent Variation (a)Revenues from New York gas sales 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. (b)After adjusting for weather and other variations, firm sales and transportation volumes in O&R's service area remained consistent in 2023 compared with 2022. Operating revenues decreased $15 million in 2023 compared with 2022 primarily due to lower gas purchased for resale ($24 million), offset in part by higher revenues from the New York gas rate plan ($5 million). Gas purchased for resale decreased $24 million in 2023 compared with 2022 due to lower purchased volumes ($15 million) and unit cost ($9 million). Other operations and maintenance expenses increased $7 million in 2023 compared with 2022 primarily due to higher administrative and general expenses ($2 million), higher pension costs, reflecting reconciliation to the rate plan level ($2 million) and higher uncollectible expenses ($1 million). Depreciation and amortization increased $3 million in 2023 compared with 2022 primarily due to higher gas utility plant balances. **Current (2025):** Income taxes decreased $44 million in 2024 compared with 2023 primarily due to higher amortization of excess deferred federal income taxes ($31 million) and the absence in 2024 of a remeasurement of state deferred income tax assets and liabilities as a result of the enacted New York State legislation in 2023 ($10 million). O&R For the Year Ended December 31, 2024 For the Year Ended December 31, 2023 (Millions of Dollars)ElectricGas2024 TotalElectricGas2023 Total2024-2023VariationOperating revenues$852$273$1,125$759$297$1,056$69Purchased power290 - 290247 - 24743Gas purchased for resale - 7575 - 111111(36)Other operations and maintenance306813872928337512Depreciation and amortization8235117763010611Taxes, other than income taxes6233955932914Operating 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)20242023VariationOperating revenues$852$759$93Purchased power29024743Other operations and maintenance30629214Depreciation and amortization82766Taxes, other than income taxes62593Electric operating income$112$85$27 O&R's electric sales and deliveries in 2024 compared with 2023 were: CON EDISON ANNUAL REPORT 202465 CON EDISON ANNUAL REPORT 202465 CON EDISON ANNUAL REPORT 202465 65 Millions of kWh Delivered Revenues in Millions (a) For the Years Ended For the Years Ended DescriptionDecember 31, 2024December 31, 2023VariationPercentVariation December 31, 2024December 31, 2023VariationPercentVariationResidential/Religious (b)2,133 1,917 216 11.3 %$474$419$5513.1 %Commercial/Industrial965 958 7 0.7 1671472013.6 Retail choice customers2,522 2,397 125 5.2 1981722615.1 Public authorities114 113 1 0.9 1212 - - Other operating revenues (c) - - - - 19(8)(88.9)Total5,734 5,385 349 6.5 %(d)$852$759$9312.3 % Percent Variation Percent Variation (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. The majority of O&R's electric distribution revenues in New Jersey are subject to a conservation incentive program, as a result of which distribution revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved. O&R's electric transmission revenues in New Jersey are not subject to a conservation incentive program, and as a result, changes in such volumes do impact revenues. (b)"Residential/Religious" generally includes single-family dwellings, individual apartments in multi-family dwellings, religious organizations and certain other not-for-profit organizations. (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 increased 2.7 percent in 2024 compared with 2023. Operating revenues increased $93 million in 2024 compared with 2023 primarily due to higher purchased power expenses ($43 million) and higher revenues from the New York electric rate plan ($39 million), higher revenue related to the Clean Energy Act ($3 million) and a change in incentives earned under the earnings adjustment mechanisms ($1 million). Purchased power expenses increased $43 million in 2024 compared with 2023 due to higher purchased volumes ($35 million) and unit costs ($8 million). Other operations and maintenance expenses increased $14 million in 2024 compared with 2023 primarily due to higher regulatory System Benefit Charges ($6 million), higher regulatory amortizations ($4 million), higher expenses associated with the New Jersey Clean Energy Act ($3 million) and higher tree trimming costs ($2 million). 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). 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)20242023VariationOperating revenues$273$297$(24)Gas purchased for resale75111(36)Other operations and maintenance8183(2)Depreciation and amortization35305Taxes, other than income taxes33321Gas operating income$49$41$8 O&R's gas sales and deliveries, excluding off-system sales, in 2024 compared with 2023 were: 66CON EDISON ANNUAL REPORT 2024 66CON EDISON ANNUAL REPORT 2024 66CON EDISON ANNUAL REPORT 2024 66 Thousands of Dt Delivered Revenues in Millions (a) For the Years Ended For the Years Ended DescriptionDecember 31, 2024December 31, 2023VariationPercentVariationDecember 31, 2024December 31, 2023VariationPercentVariationResidential10,749 11,428 (679)(5.9)%$166$193$(27)(14.0)%General1,767 2,929 (1,162)(39.7)2137(16)(43.2)Firm transportation4,623 5,055 (432)(8.5)3438(4)(10.5)Total firm sales and transportation17,139 19,412 (2,273)(11.7)(b) 221268(47)(17.5)Interruptible sales3,712 3,301 411 12.5 %76116.7 %Generation plants10 4 6 Large - - - - Other710 672 38 5.7 11 - - Other gas revenues - - - - 442222LargeTotal21,571 23,389 (1,818)(7.8)%$273$297$(24)(8.1)% Percent Variation (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. (b)After adjusting for weather and other variations, firm sales and transportation volumes in O&R's service area decreased 1.4 percent in 2024 compared with 2023. Operating revenues decreased $24 million in 2024 compared with 2023 primarily due to lower gas purchased for resale ($36 million), offset in part by higher revenues from the New York gas rate plan ($3 million) and a change in incentives earned under the earnings adjustment mechanisms ($2 million). Gas purchased for resale decreased $36 million in 2024 compared with 2023 due to lower purchased volumes ($18 million) and unit cost ($18 million). Other operations and maintenance expenses decreased $2 million in 2024 compared with 2023 primarily due to lower pension costs. Depreciation and amortization expenses increased $5 million in 2024 compared with 2023 primarily due to higher gas utility plant balances. --- ## Modified: (Millions of Dollars) **Key changes:** - Reworded sentence: "(a) On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses." - Reworded sentence: "(c) Represents the consolidated results of operations of Con Edison and its businesses." **Prior (2024):** (a) Other includes the parent company, Con Edison's tax equity investments, the deferred project held for sale and consolidation adjustments. 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. (d) On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See in Note W and Note X to the financial statements in Item 8. 66CON EDISON ANNUAL REPORT 2023 66CON EDISON ANNUAL REPORT 2023 66CON EDISON ANNUAL REPORT 2023 66 CON EDISON ANNUAL REPORT 2023 **Current (2025):** (a) On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note W and Note X to the financial statements in Item 8. (b) 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) Represents the consolidated results of operations of Con Edison and its businesses. (d) See "Reconciliation of Cash, Temporary Cash Investments and Restricted Cash" in Note A to the financial statements in Item 8. 70CON EDISON ANNUAL REPORT 2024 70CON EDISON ANNUAL REPORT 2024 70CON EDISON ANNUAL REPORT 2024 70 --- ## Modified: Clean Energy Businesses **Key changes:** - Removed sentence: "CON EDISON ANNUAL REPORT 202373 CON EDISON ANNUAL REPORT 202373 CON EDISON ANNUAL REPORT 202373 CON EDISON ANNUAL REPORT 2023 73" **Prior (2024):** On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note W and Note X to the financial statements in Item 8. The Clean Energy Businesses' results of operations for the year ended December 31, 2023 (reflecting the two months ended February 2023) compared with the year ended December 31, 2022 were as follows: For the Years Ended December 31,(Millions of Dollars)20232022VariationOperating revenues$129$1,319$(1,190)Purchased power - 7(7)Gas purchased for resale41241(200)Other operations and maintenance48504(456)Depreciation and amortization - 178(178)Taxes, other than income taxes321(18)Operating income$37$368$(331) **Current (2025):** On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note W and Note X to the financial statements in Item 8. The Clean Energy Businesses' results of 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)20242023VariationOperating revenues$ - $129$(129)Purchased power - - - Gas purchased for resale - 41(41)Other operations and maintenance - 48(48)Depreciation and amortization - - - Taxes, other than income taxes - 3(3)Operating income$ - $37$(37) --- ## Modified: Cash Flows Used in Investing Activities **Key changes:** - Reworded sentence: "CON EDISON ANNUAL REPORT 202471 CON EDISON ANNUAL REPORT 202471 CON EDISON ANNUAL REPORT 202471 71 The following table summarizes key components of Con Edison's cash flows used in investing activities for the years ended December 31, 2024 and December 31, 2023." **Prior (2024):** Pursuant to their rate plans, the Utilities recover the cost of utility construction expenditures from customers, including an approved rate of return (before and after being placed in service and an allowance for funds used during construction (AFUDC) before being placed in service). Increases in the amount of utility construction expenditures may temporarily increase the amount of short-term debt issued by the Utilities prior to the long-term financing of such amounts. Net cash flows used in investing activities for Con Edison were $3,562 million lower in 2023 than in 2022. The change for Con Edison primarily reflects: •the proceeds from the sale of the Clean Energy Businesses, net of cash and cash equivalents sold ($3,927 million); •lower non-utility construction expenditures ($203 million); offset in part by, •higher utility construction expenditures ($529 million). Net cash flows used in investing activities for Con Edison were $1,081 million higher in 2022 than in 2021. The change for Con Edison primarily reflects: •the proceeds from the completion of the sale of Stagecoach in 2021 ($629 million); •higher utility construction expenditures ($194 million); and •the proceeds from the divestiture of renewable electric projects at the Clean Energy Businesses in 2021 ($183 million). Net cash flows used in investing activities for CECONY were $513 million higher in 2023 than in 2022. The change for CECONY primarily reflects: •an increase in utility construction expenditures ($463 million); and •an increase in cost of removal less salvage ($50 million). Net cash flows used in investing activities for CECONY were $197 million higher in 2022 than in 2021. The change for CECONY primarily reflects: •an increase in utility construction expenditures ($183 million). **Current (2025):** CON EDISON ANNUAL REPORT 202471 CON EDISON ANNUAL REPORT 202471 CON EDISON ANNUAL REPORT 202471 71 The following table summarizes key components of Con Edison's cash flows used in investing activities for the years ended December 31, 2024 and December 31, 2023. For the Year Ended December 31,(Millions of Dollars)20242023VarianceINVESTING ACTIVITIESUtility capital expenditures$(4,770)$(4,353)$(417)Cost of removal less salvage(474)(387)(87)Non-utility capital expenditures(1)(141)140Proceeds from sale of the Clean Energy Businesses, net of cash and cash equivalents sold - 3,927(3,927)Other investing activities(28)(49)21NET CASH FLOWS USED IN INVESTING ACTIVITIES$(5,273)$(1,003)$(4,270) Utility capital expenditures Non-utility capital expenditures Net cash flows used in investing activities for Con Edison were $4,270 million higher in 2024 than in 2023. The change for Con Edison primarily reflects: •the proceeds from the sale of all of the stock of the Clean Energy Businesses, net of cash and cash equivalents sold in 2023 of $3,927 million; •an increase in utility capital expenditures of $417 million; and •higher cost of removal less salvage of $87 million; Offset in part by •a decrease in non-utility capital expenditures of ($140 million). The following table summarizes key components of CECONY's cash flows used in investing activities for the years ended December 31, 2024 and December 31, 2023. For the Year Ended December 31,(Millions of Dollars)20242023VarianceINVESTING ACTIVITIESUtility capital expenditures$(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) Utility capital expenditures Net cash flows used in investing activities for CECONY were $484 million higher in 2024 than in 2023. The change for CECONY primarily reflects: •an increase in utility capital expenditures $397 million; and •higher cost of removal less salvage $87 million. Pursuant to their rate plans, the Utilities recover the cost of utility capital expenditures from customers, including an approved rate of return (before and after being placed in service and an allowance for funds used during construction (AFUDC) before being placed in service). Increases in the amount of utility capital expenditures may temporarily increase the amount of short-term debt issued by the Utilities prior to the long-term financing of such amounts. --- ## Modified: Consolidated Statement of Cash Flows **Key changes:** - Reworded sentence: "For the Years Ended December 31,(Millions of Dollars)202420232022OPERATING ACTIVITIESNet income$1,820$2,516$1,600PRINCIPAL NON-CASH CHARGES (CREDITS) TO INCOMEDepreciation and amortization2,1552,0312,056Deferred income taxes416132435Rate case amortization and accruals2019273Net derivative (gains) losses - 12(181)Pre-tax loss (gain) on sale of the Clean Energy Businesses62(865) - Other non-cash items, net(85)(93)102CHANGES IN ASSETS AND LIABILITIESAccounts receivable - customers, net(263)(275)(296)Unbilled revenue and net unbilled revenue deferrals75(48)(96)Materials and supplies, including fuel oil and gas in storage(16)38(111)Revenue decoupling mechanism receivable - (39)26Other receivables, net and other current assets87141(36)Taxes receivable(144)33Prepayments25(200)26Accounts payable(1)(285)558Pensions and retiree benefits obligations, net(284)(179)155Pensions and retiree benefits contributions(26)(33)(39)Accrued taxes(5)(13)7Accrued interest28(7)42Superfund and environmental remediation costs, net(43)(12)(22)Distributions from equity investments 353120Deferred charges, noncurrent assets, leases, net and other regulatory assets(797)(1,200)(833)Deferred credits, noncurrent liabilities and other regulatory liabilities475196445Other current liabilities(101)2131NET CASH FLOWS FROM OPERATING ACTIVITIES3,6142,1563,935INVESTING ACTIVITIESUtility capital expenditures(4,770)(4,353)(3,824)Cost of removal less salvage(474)(387)(337)Non-utility capital expenditures(1)(141)(344)Proceeds from sale of the Clean Energy Businesses, net of cash and cash equivalents sold - 3,927 - Other investing activities(28)(49)(60)NET CASH FLOWS USED IN INVESTING ACTIVITIES(5,273)(1,003)(4,565)FINANCING ACTIVITIESNet issuance (payment) of short-term debt(118)(202)1,152Issuance of term loan500200550Retirement of term loan - (750) - Issuance of long-term debt2,9752,050800Retirement of long-term debt(477)(710)(406)Debt issuance costs(43)(32)(13)Common stock dividends(1,100)(1,096)(1,089)Issuance of common shares for stock plans605657Repurchase of common shares - (1,000) - Distribution to noncontrolling interest - (4)(37)NET CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES1,797(1,488)1,014CASH, TEMPORARY CASH INVESTMENTS, AND RESTRICTED CASH:NET CHANGE FOR THE PERIOD138(335)384BALANCE AT BEGINNING OF PERIOD1,1951,5301,146BALANCE AT END OF PERIOD$1,333$1,195$1,530LESS: CASH AND RESTRICTED CASH BALANCES HELD FOR SALE9 5 248BALANCE AT END OF PERIOD EXCLUDING HELD FOR SALE$1,324$1,190$1,282SUPPLEMENTAL DISCLOSURE OF CASH INFORMATIONCash paid during the period for:Interest, net of capitalized interest$1,072$987$900Income taxes$7$397$47SUPPLEMENTAL DISCLOSURE OF NON-CASH INFORMATIONCapital expenditures in accounts payable$501$598$681Issuance of common shares for dividend reinvestment$49$31$31Software licenses acquired but unpaid as of end of period$ - $ - $2Equipment acquired but unpaid as of end of period $6$11$17 The accompanying notes are an integral part of these financial statements." **Prior (2024):** For the Years Ended December 31,(Millions of Dollars)202320222021OPERATING ACTIVITIESNet Income$2,516$1,600$1,193PRINCIPAL NON-CASH CHARGES/(CREDITS) TO INCOMEDepreciation and amortization2,0312,0562,032Impairment of assets - - 443Deferred income taxes132435133Rate case amortization and accruals9273(16)Net derivative (gains)/losses12(181)(53)Pre-tax gain on sale of the Clean Energy Businesses(865) - - Other non-cash items, net(90)90127CHANGES IN ASSETS AND LIABILITIESAccounts receivable - customers(275)(285)(411)Unbilled revenue and net unbilled revenue deferrals(48)(96)(53)Allowance for uncollectible accounts - customers385169Materials and supplies, including fuel oil and gas in storage38(111)(82)Revenue decoupling mechanism receivable (39)26(53)Other receivables and other current assets141(21)(157)Prepayments(200)26(24)Accounts payable(285)55844Pensions and retiree benefits obligations, net(201)176266Pensions and retiree benefits contributions(33)(39)(472)Accrued taxes(13)7(46)Accrued interest(7)424Superfund and environmental remediation costs(12)(22)(10)Distributions from equity investments 312018Deferred charges, noncurrent assets, leases, net and other regulatory assets(1,216)(870)(496)Deferred credits, noncurrent liabilities and other regulatory liabilities196445258Other current liabilities2131(81)NET CASH FLOWS FROM OPERATING ACTIVITIES2,1563,9352,733INVESTING ACTIVITIESUtility construction expenditures(4,353)(3,824)(3,630)Cost of removal less salvage(387)(337)(323)Non-utility construction expenditures(141)(344)(323)Proceeds from sale of the Clean Energy Businesses, net of cash and cash equivalents sold3,927 - 629Divestiture of renewable electric projects - - 183Other investing activities(49)(60)(20)NET CASH FLOWS USED IN INVESTING ACTIVITIES(1,003)(4,565)(3,484)FINANCING ACTIVITIESNet (payment)/issuance of short-term debt(752)1,702(382)Issuance of long-term debt2,0508002,804Retirement of long-term debt(710)(406)(1,960)Debt issuance costs(32)(13)(40)Common stock dividends(1,096)(1,089)(1,030)Issuance of common shares - public offering - - 775Issuance of common shares for stock plans565760Repurchase of common shares(1,000) - - Distribution to noncontrolling interest(4)(37)(23)Sale of equity interest - - 257NET CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES(1,488)1,014461CASH, TEMPORARY CASH INVESTMENTS AND RESTRICTED CASH:NET CHANGE FOR THE PERIOD(335)384(290)BALANCE AT BEGINNING OF PERIOD1,5301,1461,436BALANCE AT END OF PERIOD$1,195$1,530$1,146LESS: CHANGE IN CASH BALANCES HELD FOR SALE5 248 - BALANCE AT END OF PERIOD EXCLUDING HELD FOR SALE$1,190$1,282$1,146SUPPLEMENTAL DISCLOSURE OF CASH INFORMATIONCash paid during the period for:Interest$987$900$924Income taxes$397$47$9SUPPLEMENTAL DISCLOSURE OF NON-CASH INFORMATIONConstruction expenditures in accounts payable$598$681$457Issuance of common shares for dividend reinvestment$31$31$49Software licenses acquired but unpaid as of end of period$ - $2$23Equipment acquired but unpaid as of end of period $11$17$22 The accompanying notes are an integral part of these financial statements. 86CON EDISON ANNUAL REPORT 2023 86CON EDISON ANNUAL REPORT 2023 86CON EDISON ANNUAL REPORT 2023 86 CON EDISON ANNUAL REPORT 2023 **Current (2025):** For the Years Ended December 31,(Millions of Dollars)202420232022OPERATING ACTIVITIESNet income$1,820$2,516$1,600PRINCIPAL NON-CASH CHARGES (CREDITS) TO INCOMEDepreciation and amortization2,1552,0312,056Deferred income taxes416132435Rate case amortization and accruals2019273Net derivative (gains) losses - 12(181)Pre-tax loss (gain) on sale of the Clean Energy Businesses62(865) - Other non-cash items, net(85)(93)102CHANGES IN ASSETS AND LIABILITIESAccounts receivable - customers, net(263)(275)(296)Unbilled revenue and net unbilled revenue deferrals75(48)(96)Materials and supplies, including fuel oil and gas in storage(16)38(111)Revenue decoupling mechanism receivable - (39)26Other receivables, net and other current assets87141(36)Taxes receivable(144)33Prepayments25(200)26Accounts payable(1)(285)558Pensions and retiree benefits obligations, net(284)(179)155Pensions and retiree benefits contributions(26)(33)(39)Accrued taxes(5)(13)7Accrued interest28(7)42Superfund and environmental remediation costs, net(43)(12)(22)Distributions from equity investments 353120Deferred charges, noncurrent assets, leases, net and other regulatory assets(797)(1,200)(833)Deferred credits, noncurrent liabilities and other regulatory liabilities475196445Other current liabilities(101)2131NET CASH FLOWS FROM OPERATING ACTIVITIES3,6142,1563,935INVESTING ACTIVITIESUtility capital expenditures(4,770)(4,353)(3,824)Cost of removal less salvage(474)(387)(337)Non-utility capital expenditures(1)(141)(344)Proceeds from sale of the Clean Energy Businesses, net of cash and cash equivalents sold - 3,927 - Other investing activities(28)(49)(60)NET CASH FLOWS USED IN INVESTING ACTIVITIES(5,273)(1,003)(4,565)FINANCING ACTIVITIESNet issuance (payment) of short-term debt(118)(202)1,152Issuance of term loan500200550Retirement of term loan - (750) - Issuance of long-term debt2,9752,050800Retirement of long-term debt(477)(710)(406)Debt issuance costs(43)(32)(13)Common stock dividends(1,100)(1,096)(1,089)Issuance of common shares for stock plans605657Repurchase of common shares - (1,000) - Distribution to noncontrolling interest - (4)(37)NET CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES1,797(1,488)1,014CASH, TEMPORARY CASH INVESTMENTS, AND RESTRICTED CASH:NET CHANGE FOR THE PERIOD138(335)384BALANCE AT BEGINNING OF PERIOD1,1951,5301,146BALANCE AT END OF PERIOD$1,333$1,195$1,530LESS: CASH AND RESTRICTED CASH BALANCES HELD FOR SALE9 5 248BALANCE AT END OF PERIOD EXCLUDING HELD FOR SALE$1,324$1,190$1,282SUPPLEMENTAL DISCLOSURE OF CASH INFORMATIONCash paid during the period for:Interest, net of capitalized interest$1,072$987$900Income taxes$7$397$47SUPPLEMENTAL DISCLOSURE OF NON-CASH INFORMATIONCapital expenditures in accounts payable$501$598$681Issuance of common shares for dividend reinvestment$49$31$31Software licenses acquired but unpaid as of end of period$ - $ - $2Equipment acquired but unpaid as of end of period $6$11$17 The accompanying notes are an integral part of these financial statements. CON EDISON ANNUAL REPORT 202489 CON EDISON ANNUAL REPORT 202489 CON EDISON ANNUAL REPORT 202489 89 --- ## Modified: Consolidated Statement of Comprehensive Income **Key changes:** - Reworded sentence: "For the Years Ended December 31,(Millions of Dollars)202420232022NET INCOME$1,748$1,606$1,390OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAXESPension and other postretirement benefit plan liability adjustments, net of taxes8 (2)3Other income, net of taxes - - 1TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAXES8(2)4COMPREHENSIVE INCOME$1,756$1,604$1,394 The accompanying notes are an integral part of these financial statements." **Prior (2024):** For the Years Ended December 31,(Millions of Dollars)202320222021NET INCOME$2,516$1,600$1,193LOSS ATTRIBUTABLE TO NON-CONTROLLING INTEREST 360153OTHER COMPREHENSIVE INCOME, NET OF TAXESPension and other postretirement benefit plan liability adjustments, net of taxes - 1630Other income, net of taxes - 1 - TOTAL OTHER COMPREHENSIVE INCOME, NET OF TAXES - 1730COMPREHENSIVE INCOME$2,519$1,677$1,376 **Current (2025):** For the Years Ended December 31,(Millions of Dollars)202420232022NET INCOME$1,820$2,516$1,600LOSS ATTRIBUTABLE TO NON-CONTROLLING INTEREST - 360OTHER COMPREHENSIVE INCOME, NET OF TAXESPension and other postretirement benefit plan liability adjustments, net of taxes7 - 16Other income, net of taxes - - 1TOTAL OTHER COMPREHENSIVE INCOME, NET OF TAXES7 - 17COMPREHENSIVE INCOME$1,827$2,519$1,677 --- ## Modified: Consolidated Edison Company of New York, Inc. **Key changes:** - Reworded sentence: "Consolidated Statement of Cash Flows For the Years Ended December 31,(Millions of Dollars)202420232022OPERATING ACTIVITIESNet income$1,748$1,606$1,390PRINCIPAL NON-CASH CHARGES/(CREDITS) TO INCOMEDepreciation and amortization2,0371,9241,778Deferred income taxes46455685Rate case amortization and accruals1797255Other non-cash items, net(27)(42)160CHANGES IN ASSETS AND LIABILITIESAccounts receivable - customers, net(264)(270)(276)Materials and supplies, including fuel oil and gas in storage(7)18(71)Revenue decoupling mechanism receivable 13(26)27Other receivables, net and other current assets86(134)99Accounts receivables from (to) affiliated companies(238)(100)(8)Unbilled revenue and net unbilled revenue deferrals64(47)(28)Prepayments(66)(106)(11)Accounts payable8(137)322Accounts payable from (to) affiliated companies6(1)(1)Pensions and retiree benefits obligations, net(283)(181)162Pensions and retiree benefits contributions(26)(33)(26)Superfund and environmental remediation costs, net(43)(12)(20)Accrued taxes10(35)15Accrued taxes from (to) affiliated companies - (88)79Accrued interest26257Deferred charges, noncurrent assets, leases, net and other regulatory assets(677)(1,142)(814)Deferred credits, noncurrent liabilities and other regulatory liabilities447199332Other current liabilities(99)2397NET CASH FLOWS FROM OPERATING ACTIVITIES3,3582,2853,263INVESTING ACTIVITIESUtility capital expenditures(4,456)(4,059)(3,596)Cost of removal less salvage(467)(380)(330)NET CASH FLOWS USED IN INVESTING ACTIVITIES(4,923)(4,439)(3,926)FINANCING ACTIVITIESNet issuance (payment) of short-term debt(209)(397)939Issuance of term loan500 - - Issuance of long-term debt2,8502,000700Retirement of long-term debt(475) - - Debt issuance costs(42)(31)(12)Capital contribution by Con Edison1301,720150Dividend to Con Edison(1,073)(1,056)(978)NET CASH FLOWS FROM FINANCING ACTIVITIES1,6812,236799CASH, TEMPORARY CASH INVESTMENTS, AND RESTRICTED CASHNET CHANGE FOR THE PERIOD11682136BALANCE AT BEGINNING OF PERIOD1,1381,056920BALANCE AT END OF PERIOD$1,254$1,138$1,056SUPPLEMENTAL DISCLOSURE OF CASH INFORMATIONCash paid (received) during the period for:Interest, net of capitalized interest$1,001$882$755Income taxes$63$(27)$87SUPPLEMENTAL DISCLOSURE OF NON-CASH INFORMATIONCapital expenditures in accounts payable$461$564$561Software licenses acquired but unpaid as of end of period$ - $ - $2Equipment acquired but unpaid as of end of period$6$11$17 The accompanying notes are an integral part of these financial statements." **Prior (2024):** Consolidated Statement of Cash Flows For the Years Ended December 31,(Millions of Dollars)202320222021OPERATING ACTIVITIESNet income$1,606$1,390$1,344PRINCIPAL NON-CASH CHARGES/(CREDITS) TO INCOMEDepreciation and amortization1,9241,7781,705Deferred income taxes55685124Rate case amortization and accruals7255(16)Other non-cash items, net(40)14830CHANGES IN ASSETS AND LIABILITIESAccounts receivable - customers(270)(268)(412)Allowance for uncollectible accounts - customers3910166Materials and supplies, including fuel oil and gas in storage18(71)(78)Revenue decoupling mechanism receivable (26)27(62)Other receivables and other current assets(136)111(161)Accounts receivables from/(to) affiliated companies(100)(8)96Unbilled revenue and net unbilled revenue deferrals(47)(28)(16)Prepayments(106)(11)(53)Accounts payable(137)32265Accounts payable to affiliated companies(1)(1)(4)Pensions and retiree benefits obligations, net(204)182283Pensions and retiree benefits contributions(33)(26)(433)Superfund and environmental remediation costs(12)(20)(18)Accrued taxes(35)15(54)Accrued taxes from/(to) affiliated companies(88)799Accrued interest2571Deferred charges, noncurrent assets, leases, net and other regulatory assets(1,158)(852)(484)Deferred credits, noncurrent liabilities and other regulatory liabilities199332210Other current liabilities2397(56)NET CASH FLOWS FROM OPERATING ACTIVITIES2,2853,2632,186INVESTING ACTIVITIESUtility construction expenditures(4,059)(3,596)(3,413)Cost of removal less salvage(380)(330)(316)NET CASH FLOWS USED IN INVESTING ACTIVITIES(4,439)(3,926)(3,729)FINANCING ACTIVITIESNet (payment)/issuance of short-term debt(397)939(299)Issuance of long-term debt2,0007002,250Retirement of long-term debt - - (640)Debt issuance costs(31)(12)(27)Capital contribution by Con Edison1,7201501,100Dividend to Con Edison(1,056)(978)(988)NET CASH FLOWS FROM FINANCING ACTIVITIES2,2367991,396CASH, TEMPORARY CASH INVESTMENTS, AND RESTRICTED CASHNET CHANGE FOR THE PERIOD82136(147)BALANCE AT BEGINNING OF PERIOD1,0569201,067BALANCE AT END OF PERIOD$1,138$1,056$920SUPPLEMENTAL DISCLOSURE OF CASH INFORMATIONCash paid/(received) during the period for:Interest$882$755$739Income taxes$(27)$87$5SUPPLEMENTAL DISCLOSURE OF NON-CASH INFORMATIONConstruction expenditures in accounts payable$564$561$406Software licenses acquired but unpaid as of end of period$ - $2$22Equipment acquired but unpaid as of end of period$11$17$22 The accompanying notes are an integral part of these financial statements. 98CON EDISON ANNUAL REPORT 2023 98CON EDISON ANNUAL REPORT 2023 98CON EDISON ANNUAL REPORT 2023 98 CON EDISON ANNUAL REPORT 2023 **Current (2025):** Consolidated Statement of Cash Flows For the Years Ended December 31,(Millions of Dollars)202420232022OPERATING ACTIVITIESNet income$1,748$1,606$1,390PRINCIPAL NON-CASH CHARGES/(CREDITS) TO INCOMEDepreciation and amortization2,0371,9241,778Deferred income taxes46455685Rate case amortization and accruals1797255Other non-cash items, net(27)(42)160CHANGES IN ASSETS AND LIABILITIESAccounts receivable - customers, net(264)(270)(276)Materials and supplies, including fuel oil and gas in storage(7)18(71)Revenue decoupling mechanism receivable 13(26)27Other receivables, net and other current assets86(134)99Accounts receivables from (to) affiliated companies(238)(100)(8)Unbilled revenue and net unbilled revenue deferrals64(47)(28)Prepayments(66)(106)(11)Accounts payable8(137)322Accounts payable from (to) affiliated companies6(1)(1)Pensions and retiree benefits obligations, net(283)(181)162Pensions and retiree benefits contributions(26)(33)(26)Superfund and environmental remediation costs, net(43)(12)(20)Accrued taxes10(35)15Accrued taxes from (to) affiliated companies - (88)79Accrued interest26257Deferred charges, noncurrent assets, leases, net and other regulatory assets(677)(1,142)(814)Deferred credits, noncurrent liabilities and other regulatory liabilities447199332Other current liabilities(99)2397NET CASH FLOWS FROM OPERATING ACTIVITIES3,3582,2853,263INVESTING ACTIVITIESUtility capital expenditures(4,456)(4,059)(3,596)Cost of removal less salvage(467)(380)(330)NET CASH FLOWS USED IN INVESTING ACTIVITIES(4,923)(4,439)(3,926)FINANCING ACTIVITIESNet issuance (payment) of short-term debt(209)(397)939Issuance of term loan500 - - Issuance of long-term debt2,8502,000700Retirement of long-term debt(475) - - Debt issuance costs(42)(31)(12)Capital contribution by Con Edison1301,720150Dividend to Con Edison(1,073)(1,056)(978)NET CASH FLOWS FROM FINANCING ACTIVITIES1,6812,236799CASH, TEMPORARY CASH INVESTMENTS, AND RESTRICTED CASHNET CHANGE FOR THE PERIOD11682136BALANCE AT BEGINNING OF PERIOD1,1381,056920BALANCE AT END OF PERIOD$1,254$1,138$1,056SUPPLEMENTAL DISCLOSURE OF CASH INFORMATIONCash paid (received) during the period for:Interest, net of capitalized interest$1,001$882$755Income taxes$63$(27)$87SUPPLEMENTAL DISCLOSURE OF NON-CASH INFORMATIONCapital expenditures in accounts payable$461$564$561Software licenses acquired but unpaid as of end of period$ - $ - $2Equipment acquired but unpaid as of end of period$6$11$17 The accompanying notes are an integral part of these financial statements. CON EDISON ANNUAL REPORT 2024101 CON EDISON ANNUAL REPORT 2024101 CON EDISON ANNUAL REPORT 2024101 101 --- ## Modified: Liquidity and Capital Resources **Key changes:** - Added sentence: "The Companies monitor the financial markets closely, including borrowing rates and daily cash collections." - Added sentence: "Increases in aged accounts receivable balances, inflationary pressure and higher interest rates have increased the amount of capital needed by the Utilities and the costs of such capital." - Added sentence: "See "Interest Rate Risk," below, "Aged Accounts Receivable Balances," above and "Capital Resources," below." - Added sentence: "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." - Added sentence: "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." **Prior (2024):** The Companies' liquidity reflects cash flows from operating, investing and financing activities, as shown on their respective consolidated statements of cash flows and as discussed below. The principal factors affecting Con Edison's liquidity are its investments in the Utilities and Con Edison Transmission, the dividends it pays to its shareholders and the dividends it receives from its subsidiaries and cash flows from financing activities discussed below. The principal factors affecting CECONY's liquidity are its cash flows from operating activities, cash used in investing activities (including construction expenditures), the dividends it pays to Con Edison and cash flows from financing activities discussed below. The Companies generally maintain minimal cash balances and use short-term borrowings to meet their working capital needs and other cash requirements. The Companies repay their short-term borrowings using funds from long-term financings and operating activities. The Utilities' cost of capital, including working capital, is reflected in the rates they charge to their customers. Each of the Companies believes that it will be able to meet its reasonably likely short-term and long-term cash requirements. See "The Companies Require Access To Capital Markets To Satisfy Funding Requirements," "Changes To Tax Laws Could Adversely Affect the Companies," "The Companies Face Risks Related to Health Epidemics And Other Outbreaks," and "The Companies Also Face Other Risks That Are Beyond Their Control" in Item 1A, and "Capital Requirements and Resources" in Item 1. CON EDISON ANNUAL REPORT 202365 CON EDISON ANNUAL REPORT 202365 CON EDISON ANNUAL REPORT 202365 CON EDISON ANNUAL REPORT 2023 65 The Companies' cash, temporary cash investments and restricted cash resulting from operating, investing and financing activities for the years ended December 31, 2023, 2022 and 2021 are summarized as follows: CECONYO&RClean Energy Businesses (d)Con Edison TransmissionOther (a)Con Edison (b)(Millions of Dollars)202320222021202320222021202320222021202320222021202320222021202320222021Operating activities$2,285$3,263$2,186$216$216$127$ - $506$175$(137)$66$44$(208)$(116)$201$2,156$3,935$2,733Investing activities(4,439)(3,926)(3,729)(301)(235)(224)(248)(339)(139)(49)(65)6084,034 - - (1,003)(4,565)(3,484)Financing activities2,2367991,396732589 - (97)(45)211(1)(652)(4,008)288(327)(1,488)1,014461Net change for the period82136(147)(12)6(8)(248)70(9)25 - - (182)172(126)(335)384(290)Balance at beginning of period1,0569201,067352937248178187 - - - 191191451,5301,1461,436Balance at end of period (c)$1,138$1,056$920$23$35$29$ - $248$178$25$ - $ - $9$191$19$1,195$1,530$1,146Less: Change in cash balances held for sale (d) - - - - - - - 248 - - - - 5 - - 5 248 - Balance at end of period excluding held for sale $1,138$1,056$920$23$35$29$ - $ - $178$25 $ - $ - $4$191$19$1,190$1,282$1,146 CECONY O&R **Current (2025):** The Companies monitor the financial markets closely, including borrowing rates and daily cash collections. Increases in aged accounts receivable balances, inflationary pressure and higher interest rates have increased the amount of capital needed by the Utilities and the costs of such capital. 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. 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. Con Edison and the Utilities have not entered into any loans under the Credit Agreement and CECONY has not entered into any loans under the CECONY Credit Agreement. 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. CECONY has the option to prepay the term loans issued under the CECONY Term Loan Credit Agreement prior to maturity. 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 Companies' liquidity reflects cash flows from operating, investing and financing activities, as shown on their respective consolidated statements of cash flows and as discussed below. The principal factors affecting Con Edison's liquidity are its investments in the Utilities and Con Edison Transmission, the dividends it pays to its shareholders and the dividends it receives from its subsidiaries and cash flows from financing activities discussed below. The principal factors affecting CECONY's liquidity are its cash flows from operating activities, cash used in investing activities (including capital expenditures), the dividends it pays to Con Edison and cash flows from financing activities discussed below. The Companies generally maintain minimal cash balances and use short-term borrowings to meet their working capital needs and other cash requirements. The Companies repay their short-term borrowings using funds from long-term financings and operating activities. The Utilities' cost of capital, including working capital, is reflected in the rates they charge to their customers. Each of the Companies believes that it will be able to meet its reasonably likely short-term and long-term cash requirements. See "The Companies Require Access To Capital Markets To Satisfy Funding Requirements," "Changes To Tax Laws Could Adversely Affect the Companies," "The Companies May be Adversely Affected by Changes to the Utilities' Rate Plans," "The Companies Face Risks Related to Health Epidemics And Other Outbreaks," and "The Companies Also Face Other Risks That Are Beyond Their Control" in Item 1A, and "Capital Requirements and Resources" in Item 1. CON EDISON ANNUAL REPORT 202469 CON EDISON ANNUAL REPORT 202469 CON EDISON ANNUAL REPORT 202469 69 The Companies' cash, temporary cash investments and restricted cash resulting from operating, investing and financing activities for the years ended December 31, 2024 and 2023 are summarized as follows: CECONYO&RClean Energy Businesses (a)Con Edison TransmissionOther (b)Con Edison (c)(Millions of Dollars)202420232024202320242023202420232024202320242023Operating activities$3,358$2,285$153$216$ - $ - $30$(137)$73$(208)$3,614$2,156Investing activities(4,923)(4,439)(321)(301) - (248)(29)(49) - 4,034(5,273)(1,003)Financing activities1,6812,23618373 - - (3)211(64)(4,008)1,797(1,488)Net change for the period1168215(12) - (248)(2)259(182)138(335)Balance at beginning of period1,1381,056233524825 - 91911,1951,530Balance at end of period (d)$1,254$1,138$38$23$ - $ - $23$25$18$9$1,333$1,195Less: Change in cash balances held for sale (a) - - - - - - - - 95 9 5 Balance at end of period excluding held for sale $1,254$1,138$38$23$ - $ - $23 $25$9$4$1,324$1,190 CECONY O&R --- ## Modified: Summary of Investment Balances **Key changes:** - Reworded sentence: "The following investment assets are included in the Companies' consolidated balance sheets at December 31, 2024 and 2023: CON EDISON ANNUAL REPORT 2024111 CON EDISON ANNUAL REPORT 2024111 CON EDISON ANNUAL REPORT 2024111 111 Con EdisonCECONY(Millions of Dollars)2024202320242023Supplemental retirement income plan assets (b)$583$524$560$502Con Edison Transmission's investment in New York Transco (d)254221 - - Con Edison Transmission's investment in MVP (a) (d)166144 - - Deferred income plan assets1169911699Virginia Tax Equity Projects (c)48 - - Other3387Total investments$1,126$999$684$608 (a)At December 31, 2024 and 2023, Con Edison Transmission's cash investment in MVP was $530 million." - Reworded sentence: "(d)At December 31, 2024 and 2023, Con Edison had undistributed earnings from MVP of $127 million and $114 million, respectively, and undistributed earnings from New York Transco of $16 million and $13 million, respectively." **Prior (2024):** The following investment assets are included in the Companies' consolidated balance sheets at December 31, 2023 and 2022: Con EdisonCECONY(Millions of Dollars)2023202220232022Con Edison Transmission investment in MVP (a)$144$111$ - $ - Supplemental retirement income plan assets (b)524459502439Deferred income plan assets99939993Con Edison Transmission's investment in New York Transco (c)221176 - - Virginia Tax Equity Projects (d)8 - - - Other3277Total investments$999$841$608$539 (a)At December 31, 2023 and 2022, Con Edison Transmission's cash investment in MVP was $530 million. In January 2024, the operator of the Mountain Valley Pipeline indicated that it is targeting an in-service date for the project in the first quarter of 2024 at an overall project cost of approximately $7,200 million excluding allowance for funds used during construction. See "Investment in Mountain Valley Pipeline, LLC (MVP)" above. (b)See Note E. (c)Con Edison Transmission owns a 45.7 percent interest in New York Transco's TOTS and NYES projects and a 41.7 percent interest in New York Transco's share of the Propel NY Energy project. (d)See Note S. **Current (2025):** The following investment assets are included in the Companies' consolidated balance sheets at December 31, 2024 and 2023: CON EDISON ANNUAL REPORT 2024111 CON EDISON ANNUAL REPORT 2024111 CON EDISON ANNUAL REPORT 2024111 111 Con EdisonCECONY(Millions of Dollars)2024202320242023Supplemental retirement income plan assets (b)$583$524$560$502Con Edison Transmission's investment in New York Transco (d)254221 - - Con Edison Transmission's investment in MVP (a) (d)166144 - - Deferred income plan assets1169911699Virginia Tax Equity Projects (c)48 - - Other3387Total investments$1,126$999$684$608 (a)At December 31, 2024 and 2023, Con Edison Transmission's cash investment in MVP was $530 million. In June 2024, MVP entered service at an overall project cost of approximately $8,100 million excluding allowance for funds used during construction. See "Investment in Mountain Valley Pipeline, LLC (MVP)" above. (b)See Note E. (c)See Note S. (d)At December 31, 2024 and 2023, Con Edison had undistributed earnings from MVP of $127 million and $114 million, respectively, and undistributed earnings from New York Transco of $16 million and $13 million, respectively. (d) --- ## Modified: Cash Flows From (Used In) Financing Activities **Key changes:** - Reworded sentence: "The following table summarizes key components of Con Edison's cash flows from (used in) financing activities for the years ended December 31, 2024 and December 31, 2023." - Removed sentence: "Net cash flows from financing activities during the years ended December 31, 2022 and 2021 also reflect the following Clean Energy Businesses transactions: 2022 •Entered into and borrowed $150 million under a 364-Day Senior Unsecured Term Loan Credit Agreement guaranteed by Con Edison, that was repaid in March 2023, the proceeds from which were used for general corporate purposes." - Removed sentence: "2021 •Borrowed $250 million at a variable rate, due 2028, secured by equity interests in four of the company's solar electric production projects, the interest rate for which was swapped to a fixed rate of 3.39 percent; •Entered into an agreement with a tax equity investor for the financing of a portfolio of three of the Clean Energy Businesses' solar electric production projects (CED Nevada Virginia)." - Removed sentence: "Under the financing, the tax equity investor acquired a noncontrolling interest in the portfolio and will receive a percentage of earnings, tax attributes and cash flows." - Removed sentence: "As of December 31, 2021, the tax equity investor fully funded its $263 million financing obligation; •Prepaid in full $249 million of borrowings outstanding under, and terminated, a $613 million variable-rate construction loan facility that was secured by and used to fund construction costs for CED Nevada Virginia; and •Issued $229 million aggregate principal amount of 3.77 percent senior notes, due 2046, secured by equity interests in CED Nevada Virginia." **Prior (2024):** Net cash flows from financing activities in 2023 for Con Edison and CECONY were $2,502 million lower and $1,437 million higher, respectively, than in 2022. Net cash flows from financing activities in 2022 for Con Edison and CECONY were $553 million higher and $597 million lower, respectively, than in 2021. Net cash flows from financing activities during the years ended December 31, 2023, 2022 and 2021 reflect the following Con Edison transactions: 68CON EDISON ANNUAL REPORT 2023 68CON EDISON ANNUAL REPORT 2023 68CON EDISON ANNUAL REPORT 2023 68 CON EDISON ANNUAL REPORT 2023 2023 •In January, entered into and borrowed $200 million under a 364-Day Senior Unsecured Term Loan Credit Agreement, that was repaid in March 2023, the proceeds from which were used for general corporate purposes; •In March, entered into accelerated share repurchase agreements with two dealers to repurchase $1,000 million in aggregate of Con Edison's Common Shares. Con Edison made payments of $1,000 million in aggregate to the dealers and received deliveries of 10,543,263 Common Shares in aggregate; and •In December, redeemed at maturity $650 million of 0.65 percent senior unsecured notes. 2022 •Entered into and borrowed $400 million under a 364-Day Senior Unsecured Term Loan Credit Agreement, that was repaid in March 2023, the proceeds from which were used for general corporate purposes; and •Redeemed at maturity $293 million of 8.71 percent senior unsecured notes. 2021 •Issued 10,100,000 shares of its common stock resulting in net proceeds of approximately $775 million, after issuance expenses. The net proceeds from the sale of the common shares were invested by Con Edison in CECONY, for funding of its construction expenditures and for its other general corporate purposes; •Redeemed at maturity $500 million of 2.00 percent 5-year debentures with proceeds from a $500 million borrowing under an April 2021 Credit Agreement, which Con Edison prepaid in full in July 2021; and •Optionally prepaid the remaining $675 million outstanding under a February 2019 term loan prior to its maturity in June 2021. Con Edison's cash flows from financing activities in 2023, 2022 and 2021 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 $87 million, $88 million and $109 million, respectively. Con Edison's cash flows from financing activities for the year ended December 31, 2023 also reflects retirement of short-term debt of $752 million compared with a net issuance of $1,702 million in the 2022 period and retirement of short-term debt of $382 million in the 2021 period. Net cash flows from financing activities during the years ended December 31, 2023, 2022 and 2021 reflect the following CECONY transactions: 2023 •In February, issued $500 million aggregate principal amount of 5.20 percent debentures, due 2033, the net proceeds from the sale of which were used to repay short-term borrowings and for other general corporate purposes; and •In November, issued $600 million aggregate principal amount of 5.50 percent debentures, due 2034 and $900 million aggregate principal amount of 5.90 percent debentures, due 2053, the net proceeds from the sale of which were used to repay short-term borrowings and for other general corporate purposes. 2022 •Issued $700 million aggregate principal amount of 6.15 percent debentures, due 2052, the net proceeds from the sale of which were used to repay short-term borrowings and for other general corporate purposes. 2021 •Issued $600 million aggregate principal amount of 3.20 percent debentures, due 2051, the net proceeds from the sale of which were used to repay short-term borrowings and for other general corporate purposes; •Issued $900 million aggregate principal amount of 2.40 percent debentures, due 2031, the aggregate net proceeds from the sales of which were used to redeem at maturity its $640 million floating rate 3-year debentures and for other general corporate purposes, including repayment of short-term debt; and •Issued $750 million aggregate principal amount of 3.60 percent debentures, due 2061, the net proceeds from the sale of which will be used to pay or reimburse the payment of, in whole or in part, existing and new qualifying eligible green expenditures, such as energy efficiency and clean transportation expenditures, that include those funded on or after January 1, 2021 until the maturity date of the debentures. Pending the allocation of the net proceeds to finance or refinance eligible green expenditures, CECONY used the net proceeds for repayment of short-term debt and temporarily placed the remaining net proceeds in short-term interest-bearing instruments. CON EDISON ANNUAL REPORT 202369 CON EDISON ANNUAL REPORT 202369 CON EDISON ANNUAL REPORT 202369 CON EDISON ANNUAL REPORT 2023 69 CECONY's cash flows from financing activities for the year ended December 31, 2023 also reflects retirement of short-term debt of $397 million compared with a net issuance of $939 million in the 2022 period and retirement of short-term debt of $299 million in the 2021 period. CECONY's cash flows from financing activities also reflects capital contributions from the parent of $1,720 million, $150 million and $1,100 million for the years ended December 31, 2023, 2022 and 2021, respectively. Net cash flows from financing activities during the years ended December 31, 2023, 2022 and 2021 also reflect the following O&R transactions: 2023 •In December, issued $50 million aggregate principal amount of 6.59 percent debentures, due 2053, the net proceeds from the sale of which were used to repay short-term borrowings and for other general corporate purposes. 2022 •Issued $100 million aggregate principal amount of 5.70 percent debentures, due 2032, the net proceeds from the sale of which were used to repay short-term borrowings and for other general corporate purposes. 2021 •Issued $45 million aggregate principal amount of 2.31 percent debentures, due 2031 and $30 million aggregate principal amount of 3.17 percent debentures, due 2051, the net proceeds from the sales of which were used to repay short-term borrowings and for other general corporate purposes. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note W and Note X to the financial statements in Item 8. Net cash flows from financing activities during the years ended December 31, 2022 and 2021 also reflect the following Clean Energy Businesses transactions: 2022 •Entered into and borrowed $150 million under a 364-Day Senior Unsecured Term Loan Credit Agreement guaranteed by Con Edison, that was repaid in March 2023, the proceeds from which were used for general corporate purposes. 2021 •Borrowed $250 million at a variable rate, due 2028, secured by equity interests in four of the company's solar electric production projects, the interest rate for which was swapped to a fixed rate of 3.39 percent; •Entered into an agreement with a tax equity investor for the financing of a portfolio of three of the Clean Energy Businesses' solar electric production projects (CED Nevada Virginia). Under the financing, the tax equity investor acquired a noncontrolling interest in the portfolio and will receive a percentage of earnings, tax attributes and cash flows. As of December 31, 2021, the tax equity investor fully funded its $263 million financing obligation; •Prepaid in full $249 million of borrowings outstanding under, and terminated, a $613 million variable-rate construction loan facility that was secured by and used to fund construction costs for CED Nevada Virginia; and •Issued $229 million aggregate principal amount of 3.77 percent senior notes, due 2046, secured by equity interests in CED Nevada Virginia. Cash flows from financing activities of the Companies also reflect commercial paper issuance. The commercial paper amounts outstanding at December 31, 2023, 2022 and 2021 and the average daily balances for 2023, 2022 and 2021 for Con Edison and CECONY were as follows: 202320222021(Millions of Dollars, exceptWeighted Average Yield)Outstanding atDecember 31DailyaverageOutstanding atDecember 31DailyaverageOutstanding atDecember 31DailyaverageCon Edison$2,288$1,446$2,640$1,485$1,488$1,189CECONY$1,903$1,377$2,300$1,306$1,361$1,082Weighted average yield5.6 %5.3 %4.8 %2.3 %0.3 %0.2 % **Current (2025):** The following table summarizes key components of Con Edison's cash flows from (used in) financing activities for the years ended December 31, 2024 and December 31, 2023. For the Year Ended December 31,(Millions of Dollars)20242023VarianceFINANCING ACTIVITIESNet issuance (payment) of short-term debt$(118)$(202)$84Issuance of term loan500200300Retirement of term loan - (750)750Issuance of long-term debt2,9752,050925Retirement of long-term debt(477)(710)233Debt issuance costs(43)(32)(11)Common stock dividends(1,100)(1,096)(4)Issuance of common shares for stock plans60564Repurchase of common shares - (1,000)1,000Distribution to noncontrolling interest - (4)4NET CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES$1,797$(1,488)$3,285 Issuance of term loan Retirement of term loan 72CON EDISON ANNUAL REPORT 2024 72CON EDISON ANNUAL REPORT 2024 72CON EDISON ANNUAL REPORT 2024 72 Net cash flows from financing activities for Con Edison were $3,285 million higher for the year ended December 31, 2024 compared with the 2023 period and reflect the following transactions: •the repurchase of common shares of $1,000 million in the 2023 period; •an increase in proceeds in long-term debt of $925 million. In May 2024, CECONY issued $1,400 million aggregate principal amount of debentures, the net proceeds from the sale of which were used to repay short-term borrowings and for other general corporate purposes. In September 2024, O&R issued $125 million aggregate principal amount of debentures, the net proceeds from the sale of which were used to repay short-term borrowings and for other general corporate purchases. In November 2024, all of the $225 million of Series 2010A tax-exempt bonds issued for the benefit of CECONY, bearing interest at a weekly rate, were redeemed. In November 2024, CECONY issued $1,450 million aggregate principal amount of debentures, $225 million of which were used to fund the redemption of the 2010A tax-exempt bonds and the remaining amount of which were used to repay short-term borrowings and for other general corporate purchases. See Note C to the Financial Statements in Item 8; •retirement of term loans of $750 million in the 2023 period; •an increase in the issuance of term loan of $300 million; •a decrease in the retirement of long-term debt of $233 million; and •an increase in the net issuance (payment) of short-term debt of $84 million. 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 $87 million, respectively. The following table summarizes key components of CECONY's cash flows from (used in) financing activities for the years ended December 21, 2024 and December 31, 2023. For the Year Ended December 31,(Millions of Dollars)20242023VarianceFINANCING ACTIVITIESNet issuance (payment) of short-term debt$(209)$(397)$188Issuance of term loan500 - 500Issuance of long-term debt2,8502,000850Retirement of long-term debt(475) - (475)Debt issuance costs(42)(31)(11)Capital contribution by Con Edison1301,720(1,590)Dividend to Con Edison(1,073)(1,056)(17)NET CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES$1,681$2,236$(555) Issuance of term loan Net cash flows from financing activities for CECONY were $555 million lower for the year ended December 31, 2024 compared with the 2023 period and reflect the following transactions: •a decrease in contributed equity from Con Edison of $1,590 million; and •an increase in the retirement of long-term debt of $475 million; Offset in part by •an increase in proceeds in long-term debt of ($850 million) as described above; •an increase in the issuance of term loan ($500 million); and •an increase in the net issuance (payment) of short-term debt of ($188 million). 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. For the Year Ended December 31,(Millions of Dollars)20242023VarianceFINANCING ACTIVITIESNet issuance (payment) of short-term debt$82$(13)$95Issuance of long-term debt1255075Debt issuance costs(1) - (1)Capital contribution by Con Edison45100(55)Dividend to Con Edison(68)(64)(4)NET CASH FLOWS FROM FINANCING ACTIVITIES$183$73$110 Net cash flows from financing activities for O&R were $110 million higher for the year ended December 31, 2024 compared with the 2023 period and reflect the following transactions: CON EDISON ANNUAL REPORT 202473 CON EDISON ANNUAL REPORT 202473 CON EDISON ANNUAL REPORT 202473 73 •an increase in the net issuance (payment) of short-term debt of $95 million; and •an increase in the proceeds in long-term debt of $75 million as described above; Offset in part by •a decrease in contributed equity from Con Edison ($55 million). On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note W and Note X to the financial statements in Item 8. Cash flows from financing activities of the Companies also reflect commercial paper issuance. 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: 20242023(Millions of Dollars, exceptWeighted Average Yield)Outstanding atDecember 31DailyaverageOutstanding atDecember 31DailyaverageCon Edison$2,170$1,842$2,288$1,446CECONY$1,694$1,393$1,903$1,377Weighted average yield4.7 %5.4 %5.6 %5.3 % --- ## Modified: Income Tax Expense **Key changes:** - Reworded sentence: "Income taxes decreased $117 million in 2024 compared with 2023 primarily due to lower income before income tax expense ($220 million), primarily due to the prior year gain on the sale of all the stock of the Clean Energy Businesses and offsetting non-recurring tax benefits principally from the recognition of unamortized investment tax credits ($103 million) recognized in 2023." **Prior (2024):** Income taxes increased $103 million in 2023 compared with 2022 primarily due to higher income before income tax expense ($83 million), a remeasurement of state deferred tax assets and liabilities as a result of the enacted New York State legislation ($10 million), a decrease in the amortization of excess deferred federal income taxes due to the TCJA ($7 million) and higher reserve for injuries and damages ($3 million). O&R For the Year Ended December 31, 2023 For the Year Ended December 31, 2022 (Millions of Dollars)ElectricGas2023 TotalElectricGas2022 Total2023-2022VariationOperating revenues$759$297$1,056$773$312$1,085$(29)Purchased power247 - 247276 - 276(29)Gas purchased for resale - 111111 - 135135(24)Other operations and maintenance292833752757635124Depreciation and amortization76301067127988Taxes, other than income taxes5932915732892Operating income$85$41$126$94$42$136$(10) Electric O&R's results of electric operations for the year ended December 31, 2023 compared with the year ended December 31, 2022 were as follows: For the Years Ended December 31,(Millions of Dollars)20232022VariationOperating revenues$759$773$(14)Purchased power247276(29)Other operations and maintenance29227517Depreciation and amortization76715Taxes, other than income taxes59572Electric operating income$85$94$(9) CON EDISON ANNUAL REPORT 202361 CON EDISON ANNUAL REPORT 202361 CON EDISON ANNUAL REPORT 202361 CON EDISON ANNUAL REPORT 2023 61 O&R's electric sales and deliveries in 2023 compared with 2022 were: Millions of kWh Delivered Revenues in Millions (a) For the Years Ended For the Years Ended DescriptionDecember 31, 2023December 31, 2022VariationPercentVariation December 31, 2023December 31, 2022VariationPercentVariationResidential/Religious (b)1,917 1,916 1 0.1 %$419$413$61.5 %Commercial/Industrial958 944 14 1.5 147147 - - Retail choice customers2,397 2,580 (183)(7.1)172198(26)(13.1)Public authorities113 113 - - 1216(4)(25.0)Other operating revenues (c) - - - - 9(1)10LargeTotal5,385 5,553 (168)(3.0)%(d)$759$773$(14)(1.8)% Percent Variation Percent Variation (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. The majority of O&R's electric distribution revenues in New Jersey are subject to a conservation incentive program, as a result of which distribution revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved. O&R's electric transmission revenues in New Jersey are not subject to a conservation incentive program, and as a result, changes in such volumes do impact revenues. (b)"Residential/Religious" generally includes single-family dwellings, individual apartments in multi-family dwellings, religious organizations and certain other not-for-profit organizations. (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 O&R's service area decreased 0.1 percent in 2023 compared with 2022. Operating revenues decreased $14 million in 2023 compared with 2022 primarily due to lower purchased power expenses ($29 million), offset in part by higher revenues from the New York electric rate plan ($10 million) and a change in incentives earned under the earnings adjustment mechanisms (EAMs) ($4 million). Purchased power expenses decreased $29 million in 2023 compared with 2022 due to lower unit costs ($20 million) and purchased volumes ($9 million). Other operations and maintenance expenses increased $17 million in 2023 compared with 2022 primarily due to higher administrative and general expenses ($6 million), higher tree trimming expenses ($3 million), higher uncollectible expenses ($2 million), higher customer assistance costs ($2 million) and higher pension costs, reflecting reconciliation to the rate plan level ($2 million). Depreciation and amortization increased $5 million in 2023 compared with 2022 primarily due to higher electric utility plant balances. Gas O&R's results of gas operations for the year ended December 31, 2023 compared with the year ended December 31, 2022 were as follows: For the Years Ended December 31,(Millions of Dollars)20232022VariationOperating revenues$297$312$(15)Gas purchased for resale111135(24)Other operations and maintenance83767Depreciation and amortization30273Taxes, other than income taxes3232 - Gas operating income$41$42$(1) O&R's gas sales and deliveries, excluding off-system sales, in 2023 compared with 2022 were: 62CON EDISON ANNUAL REPORT 2023 62CON EDISON ANNUAL REPORT 2023 62CON EDISON ANNUAL REPORT 2023 62 CON EDISON ANNUAL REPORT 2023 Thousands of Dt Delivered Revenues in Millions (a) For the Years Ended For the Years Ended DescriptionDecember 31, 2023December 31, 2022VariationPercentVariationDecember 31, 2023December 31, 2022VariationPercentVariationResidential11,428 12,588 (1,160)(9.2)%$193$207$(14)(6.8)%General2,929 2,766 163 5.9 3738(1)(2.6)Firm transportation5,055 6,396 (1,341)(21.0)3845(7)(15.6)Total firm sales and transportation19,412 21,750 (2,338)(10.7)(b) 268290(22)(7.6)Interruptible sales3,301 3,911 (610)(15.6)%66 - - Generation plants4 10 (6)(60.0) - - - - Other334 673 (339)(50.4)11 - - Other gas revenues - - - - 2215746.7 Total23,051 26,344 (3,293)(12.5)%$297$312$(15)(4.8)% Percent Variation (a)Revenues from New York gas sales 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. (b)After adjusting for weather and other variations, firm sales and transportation volumes in O&R's service area remained consistent in 2023 compared with 2022. Operating revenues decreased $15 million in 2023 compared with 2022 primarily due to lower gas purchased for resale ($24 million), offset in part by higher revenues from the New York gas rate plan ($5 million). Gas purchased for resale decreased $24 million in 2023 compared with 2022 due to lower purchased volumes ($15 million) and unit cost ($9 million). Other operations and maintenance expenses increased $7 million in 2023 compared with 2022 primarily due to higher administrative and general expenses ($2 million), higher pension costs, reflecting reconciliation to the rate plan level ($2 million) and higher uncollectible expenses ($1 million). Depreciation and amortization increased $3 million in 2023 compared with 2022 primarily due to higher gas utility plant balances. **Current (2025):** Income taxes decreased $44 million in 2024 compared with 2023 primarily due to higher amortization of excess deferred federal income taxes ($31 million) and the absence in 2024 of a remeasurement of state deferred income tax assets and liabilities as a result of the enacted New York State legislation in 2023 ($10 million). O&R For the Year Ended December 31, 2024 For the Year Ended December 31, 2023 (Millions of Dollars)ElectricGas2024 TotalElectricGas2023 Total2024-2023VariationOperating revenues$852$273$1,125$759$297$1,056$69Purchased power290 - 290247 - 24743Gas purchased for resale - 7575 - 111111(36)Other operations and maintenance306813872928337512Depreciation and amortization8235117763010611Taxes, other than income taxes6233955932914Operating 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)20242023VariationOperating revenues$852$759$93Purchased power29024743Other operations and maintenance30629214Depreciation and amortization82766Taxes, other than income taxes62593Electric operating income$112$85$27 O&R's electric sales and deliveries in 2024 compared with 2023 were: CON EDISON ANNUAL REPORT 202465 CON EDISON ANNUAL REPORT 202465 CON EDISON ANNUAL REPORT 202465 65 Millions of kWh Delivered Revenues in Millions (a) For the Years Ended For the Years Ended DescriptionDecember 31, 2024December 31, 2023VariationPercentVariation December 31, 2024December 31, 2023VariationPercentVariationResidential/Religious (b)2,133 1,917 216 11.3 %$474$419$5513.1 %Commercial/Industrial965 958 7 0.7 1671472013.6 Retail choice customers2,522 2,397 125 5.2 1981722615.1 Public authorities114 113 1 0.9 1212 - - Other operating revenues (c) - - - - 19(8)(88.9)Total5,734 5,385 349 6.5 %(d)$852$759$9312.3 % Percent Variation Percent Variation (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. The majority of O&R's electric distribution revenues in New Jersey are subject to a conservation incentive program, as a result of which distribution revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved. O&R's electric transmission revenues in New Jersey are not subject to a conservation incentive program, and as a result, changes in such volumes do impact revenues. (b)"Residential/Religious" generally includes single-family dwellings, individual apartments in multi-family dwellings, religious organizations and certain other not-for-profit organizations. (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 increased 2.7 percent in 2024 compared with 2023. Operating revenues increased $93 million in 2024 compared with 2023 primarily due to higher purchased power expenses ($43 million) and higher revenues from the New York electric rate plan ($39 million), higher revenue related to the Clean Energy Act ($3 million) and a change in incentives earned under the earnings adjustment mechanisms ($1 million). Purchased power expenses increased $43 million in 2024 compared with 2023 due to higher purchased volumes ($35 million) and unit costs ($8 million). Other operations and maintenance expenses increased $14 million in 2024 compared with 2023 primarily due to higher regulatory System Benefit Charges ($6 million), higher regulatory amortizations ($4 million), higher expenses associated with the New Jersey Clean Energy Act ($3 million) and higher tree trimming costs ($2 million). 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). 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)20242023VariationOperating revenues$273$297$(24)Gas purchased for resale75111(36)Other operations and maintenance8183(2)Depreciation and amortization35305Taxes, other than income taxes33321Gas operating income$49$41$8 O&R's gas sales and deliveries, excluding off-system sales, in 2024 compared with 2023 were: 66CON EDISON ANNUAL REPORT 2024 66CON EDISON ANNUAL REPORT 2024 66CON EDISON ANNUAL REPORT 2024 66 Thousands of Dt Delivered Revenues in Millions (a) For the Years Ended For the Years Ended DescriptionDecember 31, 2024December 31, 2023VariationPercentVariationDecember 31, 2024December 31, 2023VariationPercentVariationResidential10,749 11,428 (679)(5.9)%$166$193$(27)(14.0)%General1,767 2,929 (1,162)(39.7)2137(16)(43.2)Firm transportation4,623 5,055 (432)(8.5)3438(4)(10.5)Total firm sales and transportation17,139 19,412 (2,273)(11.7)(b) 221268(47)(17.5)Interruptible sales3,712 3,301 411 12.5 %76116.7 %Generation plants10 4 6 Large - - - - Other710 672 38 5.7 11 - - Other gas revenues - - - - 442222LargeTotal21,571 23,389 (1,818)(7.8)%$273$297$(24)(8.1)% Percent Variation (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. (b)After adjusting for weather and other variations, firm sales and transportation volumes in O&R's service area decreased 1.4 percent in 2024 compared with 2023. Operating revenues decreased $24 million in 2024 compared with 2023 primarily due to lower gas purchased for resale ($36 million), offset in part by higher revenues from the New York gas rate plan ($3 million) and a change in incentives earned under the earnings adjustment mechanisms ($2 million). Gas purchased for resale decreased $36 million in 2024 compared with 2023 due to lower purchased volumes ($18 million) and unit cost ($18 million). Other operations and maintenance expenses decreased $2 million in 2024 compared with 2023 primarily due to lower pension costs. Depreciation and amortization expenses increased $5 million in 2024 compared with 2023 primarily due to higher gas utility plant balances. --- ## Modified: Inflation Reduction Act **Key changes:** - Reworded sentence: "On August 16, 2022, the Inflation Reduction Act (IRA) was signed into law and implemented a new corporate alternative minimum tax (CAMT) that imposes a 15 percent tax on modified GAAP net income." **Prior (2024):** On August 16, 2022, the Inflation Reduction Act of 2022 (the Act) was signed into law and included a new 15 percent Corporate Alternative Minimum Tax (CAMT). Under the Act, a corporation is subject to the CAMT if its average annual Adjusted Financial Statement Income (AFSI) for the three taxable year period ending prior to the taxable year exceeds $1,000 million, and applies to tax years beginning after December 31, 2022. Con Edison and CECONY were not subject to the CAMT in 2023 but are expected to be subject to the CAMT in subsequent years. CON EDISON ANNUAL REPORT 202351 CON EDISON ANNUAL REPORT 202351 CON EDISON ANNUAL REPORT 202351 CON EDISON ANNUAL REPORT 2023 51 However, the provisions of the CAMT are not expected to have a material impact on the Companies' financial position, results of operations or liquidity. **Current (2025):** On August 16, 2022, the Inflation Reduction Act (IRA) was signed into law and implemented a new corporate alternative minimum tax (CAMT) that imposes a 15 percent tax on modified GAAP net income. Under the IRA, a corporation is subject to the CAMT if its average annual adjusted financial statement income for the three taxable year period ending prior to the taxable year exceeds $1,000 million, and applies to tax years beginning after December 31, 2022. 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. Beginning in 2024, based on the existing statue, the Companies are subject to and report the CAMT in their Consolidated Income Statements, Consolidated Statements of Cash Flows and the Consolidated Balance Sheets. 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. The Companies are continuing to assess the impacts of the IRA on their financial statements and will update estimates based on future guidance to be issued by the Department of the Treasury. --- ## Modified: Investment in Mountain Valley Pipeline, LLC (MVP) **Key changes:** - Reworded sentence: "During 2019, Con Edison exercised its right to limit, and did limit, its cash contributions to the joint venture to approximately $530 million." **Prior (2024):** In January 2016, a subsidiary of Con Edison Transmission, acquired a 12.5 percent interest in MVP, a company developing a proposed 300-mile gas transmission project (the Mountain Valley Pipeline) in West Virginia and Virginia. During 2019, Con Edison exercised its right to limit, and did limit, its cash contributions to the joint venture to approximately $530 million, that reduced Con Edison Transmission's interest in MVP to 11.3 percent, 10.2 percent, and 9.6 percent as of December 31, 2020, 2021, and 2022, respectively. As of December 31, 2023 Con Edison Transmission's interest in MVP is 7.9 percent and is expected to be reduced to approximately 7.0 percent based on Con Edison Transmission's previous capping of its cash contributions. As of December 31, 2023, the Mountain Valley Pipeline was approximately 97 percent complete. 108CON EDISON ANNUAL REPORT 2023 108CON EDISON ANNUAL REPORT 2023 108CON EDISON ANNUAL REPORT 2023 108 CON EDISON ANNUAL REPORT 2023 During 2020, the uncertainty related to obtaining necessary water crossing permits, the resulting costs and the likelihood of the Mountain Valley Pipeline not reaching eventual completion increased as a result of actions taken by the U.S. Court of Appeals for the Fourth Circuit. This action and associated delays constituted a triggering event (the "2020 triggering event") that required Con Edison to test its investment in MVP for an other-than-temporary impairment as of December 31, 2020. In December 2021, the VA Department of Environmental Quality and the WV Department of Environmental Protection both issued water quality certification permits which are required in order for the U.S. Army Corps of Engineers to proceed with the permitting process for construction of certain Project water crossings. In January 2022, the U.S. Court of Appeals for the Fourth Circuit rejected permits for crossings through the Jefferson National Forest issued by the U.S. Forest Service and Bureau of Land Management. In February 2022, the U.S. Court of Appeals for the Fourth Circuit vacated a biological opinion from the U.S. Fish and Wildlife Service, applicable to all remaining construction. The biological opinion had been issued and was the subject of litigation prior to December 31, 2021. Con Edison believed that the February 2022 action by the U.S. Court of Appeals for the Fourth Circuit, along with the potential outcome of other matters pending before that Court, may lead to further delays and increased project costs, which constituted a triggering event (the "2021 triggering event") that required Con Edison to test its investment in MVP for an other-than-temporary impairment as of December 31, 2021. In response to the 2020 triggering event and 2021 triggering event, Con Edison assessed the value of its equity investment in the Mountain Valley Pipeline to determine whether the fair value of its investment in MVP had declined below its carrying value on an other-than-temporary basis as of December 31, 2020 and 2021, respectively. The estimated fair value of the investment was determined using a discounted cash flow analysis, which is a level 3 fair value measurement. The analysis discounted probability-weighted future cash flows, including revenues based on long-term firm transportation contracts, that are secured for the first 20 years following completion of the Mountain Valley Pipeline. See Note U. Con Edison had also assumed cash flows extending beyond this period. All cash flows were discounted at a pre-tax discount rate of 8.3 percent and then weighted based on Con Edison's estimate of the likelihood that the Mountain Valley Pipeline will be completed. For the 2020 triggering event, Con Edison estimated that the likelihood of project completion was in the upper end of a reasonably possible range. For the 2021 triggering event, Con Edison anticipated that the Mountain Valley Pipeline faced legal and regulatory challenges that could have made construction completion increasingly remote. The likelihood that the project will be completed and, for 2020, the discount rate, were the most significant and sensitive assumptions; changes in these assumptions may have materially changed the results of the impairment calculation. Based on the discounted cash flow analyses, Con Edison concluded as of December 31, 2020 and 2021 that the fair value of its investment in MVP declined below its carrying value and the declines were other-than-temporary. Accordingly, Con Edison recorded a pre-tax impairment loss of $320 million ($223 million, after tax) for the year ended December 31, 2020 that reduced the carrying value of its investment in MVP from $662 million to $342 million, with an associated deferred tax asset of $53 million. Additionally, Con Edison recorded a pre-tax impairment loss of $231 million ($162 million, after tax) for the year ended December 31, 2021 that reduced the carrying value of its investment in MVP from $342 million to $111 million, with an additional $77 million associated deferred tax asset, totaling a deferred tax asset of $130 million at December 31, 2021 and 2022. The impairments were recorded within "Investment income (loss)" on Con Edison's Consolidated Income Statement. In addition, Con Edison did not record equity in earnings from allowance for funds used during construction from MVP beginning in January 2021 and refrained from recording such amounts during 2021, 2022 and a portion of 2023 until substantial construction activities resumed. Con Edison recorded equity in earnings from AFUDC from MVP of $33 million for the year ended December 31, 2023 and expects to continue to recognize its proportionate share of equity in earnings from AFUDC until the project is placed in service, subject to the progression of construction activities. There were no impairments to the carrying value of Con Edison's investment in MVP for the years ended December 31, 2022 and 2023. In June 2023, federal legislation to raise the U.S. debt ceiling included provisions declaring the Mountain Valley Pipeline to be in the national interest, expediting the permitting process and moving jurisdiction of challenges of permits to the D.C. Circuit Court of Appeals, from the 4th Circuit Court of Appeals. These actions enabled construction activities to resume in June 2023 and continue without substantial interruption for the duration of 2023. There is risk that the fair value of Con Edison's investment in MVP may be further impaired in the future. Assumptions and estimates used to test Con Edison's investment in MVP for impairment may change if adverse developments impacting the construction of the Mountain Valley Pipeline were to occur. CON EDISON ANNUAL REPORT 2023109 CON EDISON ANNUAL REPORT 2023109 CON EDISON ANNUAL REPORT 2023109 CON EDISON ANNUAL REPORT 2023 109 **Current (2025):** In January 2016, a subsidiary of Con Edison Transmission, acquired a 12.5 percent interest in MVP, a company developing a proposed 300-mile gas transmission project (the Mountain Valley Pipeline) in West Virginia and Virginia. During 2019, Con Edison exercised its right to limit, and did limit, its cash contributions to the joint venture to approximately $530 million. In June 2024, the Mountain Valley Pipeline, a 303-mile gas transmission pipeline in West Virginia and Virginia, entered service. The project operator is continuing restoration of the right of way and estimates a total project cost of approximately $8,100 million (excluding allowance for funds used during construction (AFUDC)). At December 31, 2024, the carrying value of Con Edison Transmission's investment in MVP was $166 million, and its cash contributions to the joint venture amounted to $530 million. Con Edison records its pro rata share of earnings from its equity investment in MVP, adjusted for accretion of the basis difference and income taxes, on its consolidated income statement. Con Edison's pro rata share of earnings from its equity investment in MVP, adjusted for accretion of the basis difference, was $29 million ($21 million after-tax) for the twelve months ended December 31, 2024. As of December 31, 2024, Con Edison Transmission's interest in MVP, the company that developed the project, is 6.7 percent and is expected to be reduced to approximately 6.6 percent upon completion of the restoration of the right of way and based on Con Edison Transmission's previous capping of its cash contributions. There were no impairments to the carrying value of Con Edison Transmission's investment in MVP for the years ended December 31, 2022, 2023 and 2024. --- ## Modified: Consolidated Statement of Capitalization **Key changes:** - Reworded sentence: "LONG-TERM DEBT (Millions of Dollars) At December 31,MaturityInterest RateSeries20242023DEBENTURES:20243.302014B$ - $25020262.902016B25025020273.1252017B35035020274.825(a)2024C350 - 20283.802018A30030020284.002018D50050020303.352020A60060020312.402021A90090020335.8752003A17517520335.102003C20020020335.202023A50050020345.702004B20020020345.502023B60060020345.3752024A400 - 20355.302005A35035020355.252005B12512520355.1252024D450 - 20365.852006A40040020366.202006B40040020365.702006E25025020376.302007A52552520386.752008B60060020395.502009C60060020405.702010B35035020424.202012A40040020433.952013A70070020444.452014A85085020454.502015A65065020463.852016A55055020473.8752017A50050020484.652018E60060020494.1252019A700700" **Prior (2024):** Shares outstandingDecember 31,At December 31,(In Millions)2023202220232022TOTAL EQUITY BEFORE ACCUMULATED OTHER COMPREHENSIVE INCOME 345355$21,136$20,665Pension plan liability adjustments, net of taxes2323Unrealized losses on derivatives qualified as cash flow hedges, less reclassification adjustment for gains/(losses) included in net income and reclassification adjustment for unrealized losses included in regulatory assets, net of taxes (1)(1)TOTAL ACCUMULATED OTHER COMPREHENSIVE INCOME, NET OF TAXES2222Equity21,15820,687Noncontrolling interest - 202TOTAL EQUITY (See Statement of Equity) $21,158$20,889 **Current (2025):** Shares outstandingDecember 31,At December 31,(In Millions)2024202320242023TOTAL EQUITY BEFORE ACCUMULATED OTHER COMPREHENSIVE INCOME 347345$21,933$21,136Pension and other postretirement benefit plan liability adjustments, net of taxes3023Unrealized losses on derivatives qualified as cash flow hedges, less reclassification adjustment for gains (losses) included in net income and reclassification adjustment for unrealized losses included in regulatory assets, net of taxes (1)(1)TOTAL ACCUMULATED OTHER COMPREHENSIVE INCOME, NET OF TAXES2922TOTAL EQUITY (See Statement of Equity) $21,962$21,158 --- ## Modified: Consolidated Income Statement **Key changes:** - Reworded sentence: "For the Years Ended December 31,(Millions of Dollars/Except Share Data)202420232022OPERATING REVENUESElectric$11,568$10,835$10,522Gas3,1073,1273,237Steam578569593Non-utility31321,318TOTAL OPERATING REVENUES15,25614,66315,670OPERATING EXPENSESPurchased power2,5692,5412,479Fuel170282356Gas purchased for resale5998291,245Other operations and maintenance3,7513,6063,905Depreciation and amortization2,1552,0312,056Taxes, other than income taxes3,2803,0433,005TOTAL OPERATING EXPENSES12,52412,33213,046Gain (Loss) on sale of the Clean Energy Businesses(62)865 - OPERATING INCOME2,6703,1962,624OTHER INCOME (DEDUCTIONS)Investment income626220Other income635834402Allowance for equity funds used during construction382619Other deductions(80)(92)(115)TOTAL OTHER INCOME655830326INCOME BEFORE INTEREST AND INCOME TAX EXPENSE3,3254,0262,950INTEREST EXPENSE (INCOME)Interest on long-term debt1,084962987Other interest expense (income)166113(99)Allowance for borrowed funds used during construction(63)(52)(36)NET INTEREST EXPENSE1,1871,023852INCOME BEFORE INCOME TAX EXPENSE2,1383,0032,098INCOME TAX EXPENSE318487498NET INCOME$1,820$2,516$1,600Loss attributable to non-controlling interest$ - $(3)$(60)NET INCOME FOR COMMON STOCK$1,820$2,519$1,660Net income per common share - basic$5.26$7.25$4.68Net income per common share - diluted$5.24$7.21$4.66AVERAGE NUMBER OF SHARES OUTSTANDING - BASIC (IN MILLIONS)346.0347.7354.5AVERAGE NUMBER OF SHARES OUTSTANDING - DILUTED (IN MILLIONS)347.3349.3355.8 The accompanying notes are an integral part of these financial statements." **Prior (2024):** For the Years Ended December 31,(Millions of Dollars/Except Share Data)202320222021OPERATING REVENUESElectric$10,835$10,522$9,485Gas3,1273,2372,638Steam569593532Non-utility1321,3181,021TOTAL OPERATING REVENUES14,66315,67013,676OPERATING EXPENSESPurchased power2,5412,4791,835Fuel282356229Gas purchased for resale8291,245690Other operations and maintenance3,6063,9053,254Depreciation and amortization2,0312,0562,032Taxes, other than income taxes3,0433,0052,810TOTAL OPERATING EXPENSES12,33213,04610,850Gain on sale of the Clean Energy Businesses865 - - OPERATING INCOME3,1962,6242,826OTHER INCOME (DEDUCTIONS)Investment income (loss)6220(420)Other income83440222Allowance for equity funds used during construction261921Other deductions(92)(115)(161)TOTAL OTHER INCOME (DEDUCTIONS)830326(538)INCOME BEFORE INTEREST AND INCOME TAX EXPENSE4,0262,9502,288INTEREST EXPENSE (INCOME)Interest on long-term debt962987930Other interest expense (income)113(99)(14)Allowance for borrowed funds used during construction(52)(36)(11)NET INTEREST EXPENSE1,023852905INCOME BEFORE INCOME TAX EXPENSE3,0032,0981,383INCOME TAX EXPENSE487498190NET INCOME$2,516$1,600$1,193Loss attributable to non-controlling interest$(3)$(60)$(153)NET INCOME FOR COMMON STOCK$2,519$1,660$1,346Net income per common share - basic$7.25$4.68$3.86Net income per common share - diluted$7.21$4.66$3.85AVERAGE NUMBER OF SHARES OUTSTANDING - BASIC (IN MILLIONS)347.7354.5348.4AVERAGE NUMBER OF SHARES OUTSTANDING - DILUTED (IN MILLIONS)349.3355.8349.4 The accompanying notes are an integral part of these financial statements. 84CON EDISON ANNUAL REPORT 2023 84CON EDISON ANNUAL REPORT 2023 84CON EDISON ANNUAL REPORT 2023 84 CON EDISON ANNUAL REPORT 2023 **Current (2025):** For the Years Ended December 31,(Millions of Dollars/Except Share Data)202420232022OPERATING REVENUESElectric$11,568$10,835$10,522Gas3,1073,1273,237Steam578569593Non-utility31321,318TOTAL OPERATING REVENUES15,25614,66315,670OPERATING EXPENSESPurchased power2,5692,5412,479Fuel170282356Gas purchased for resale5998291,245Other operations and maintenance3,7513,6063,905Depreciation and amortization2,1552,0312,056Taxes, other than income taxes3,2803,0433,005TOTAL OPERATING EXPENSES12,52412,33213,046Gain (Loss) on sale of the Clean Energy Businesses(62)865 - OPERATING INCOME2,6703,1962,624OTHER INCOME (DEDUCTIONS)Investment income626220Other income635834402Allowance for equity funds used during construction382619Other deductions(80)(92)(115)TOTAL OTHER INCOME655830326INCOME BEFORE INTEREST AND INCOME TAX EXPENSE3,3254,0262,950INTEREST EXPENSE (INCOME)Interest on long-term debt1,084962987Other interest expense (income)166113(99)Allowance for borrowed funds used during construction(63)(52)(36)NET INTEREST EXPENSE1,1871,023852INCOME BEFORE INCOME TAX EXPENSE2,1383,0032,098INCOME TAX EXPENSE318487498NET INCOME$1,820$2,516$1,600Loss attributable to non-controlling interest$ - $(3)$(60)NET INCOME FOR COMMON STOCK$1,820$2,519$1,660Net income per common share - basic$5.26$7.25$4.68Net income per common share - diluted$5.24$7.21$4.66AVERAGE NUMBER OF SHARES OUTSTANDING - BASIC (IN MILLIONS)346.0347.7354.5AVERAGE NUMBER OF SHARES OUTSTANDING - DILUTED (IN MILLIONS)347.3349.3355.8 The accompanying notes are an integral part of these financial statements. CON EDISON ANNUAL REPORT 202487 CON EDISON ANNUAL REPORT 202487 CON EDISON ANNUAL REPORT 202487 87 --- ## Modified: Consolidated Balance Sheet **Key changes:** - Reworded sentence: "(Millions of Dollars)December 31, 2024December 31, 2023ASSETSCURRENT ASSETSCash and temporary cash investments$1,254$1,138Accounts receivable - customers, net allowance for uncollectible accounts of $605 and $353 in 2024 and 2023, respectively2,3422,330Other receivables, net allowance for uncollectible accounts of $38 and $9 in 2024 and 2023, respectively216332Accrued unbilled revenue803678Accounts receivable from affiliated companies384146Fuel oil, gas in storage, materials and supplies, at average cost429422Prepayments395329Regulatory assets106254Revenue decoupling mechanism receivable177190Fair value of derivative assets1149Other current assets181113TOTAL CURRENT ASSETS6,2985,981INVESTMENTS684608UTILITY PLANT AT ORIGINAL COSTElectric38,74736,808Gas13,93413,226Steam3,1873,085General4,5204,530TOTAL60,38857,649Less: Accumulated depreciation14,31913,171Net46,06944,478Construction work in progress2,9122,168NET UTILITY PLANT48,98146,646NON-UTILITY PROPERTYNon-utility property, net accumulated depreciation of $25 in 2024 and 202322NET PLANT48,98346,648OTHER NONCURRENT ASSETSRegulatory assets5,1584,314Operating lease right-of-use asset492532Pension and retiree benefits3,6923,184Fair value of derivative assets2549Other deferred charges and noncurrent assets318284TOTAL OTHER NONCURRENT ASSETS9,6858,363TOTAL ASSETS$65,650$61,600 Accounts receivable - customers, net allowance for uncollectible accounts of $605 and $353 in 2024 and 2023, respectively Other receivables, net allowance for uncollectible accounts of $38 and $9 in 2024 and 2023, respectively Non-utility property, net accumulated depreciation of $25 in 2024 and 2023 The accompanying notes are an integral part of these financial statements." **Prior (2024):** (Millions of Dollars)December 31, 2023December 31, 2022ASSETSCURRENT ASSETSCash and temporary cash investments$1,189$1,282Accounts receivable - customers, net allowance for uncollectible accounts of $360 and $322 in 2023 and 2022, respectively2,4182,192Other receivables, net allowance for uncollectible accounts of $13 and $10 in 2023 and 2022, respectively444164Taxes receivable110Accrued unbilled revenue722702Fuel oil, gas in storage, materials and supplies, at average cost469492Prepayments470264Regulatory assets281305Restricted cash 1 - Revenue decoupling mechanism receivable203164Fair value of derivative assets5259Assets held for sale1637,162Other current assets 124176TOTAL CURRENT ASSETS6,53712,972INVESTMENTS999841UTILITY PLANT, AT ORIGINAL COSTElectric39,07136,819Gas14,31813,378Steam3,0852,935General4,8354,205TOTAL61,30957,337Less: Accumulated depreciation14,15713,069Net47,15244,268Construction work in progress2,4422,484NET UTILITY PLANT49,59446,752NON-UTILITY PLANTNon-utility property, net accumulated depreciation of $24 and $23 in 2023 and 2022, respectively1313Construction work in progress11NET PLANT49,60846,766OTHER NONCURRENT ASSETSGoodwill408408Operating lease right-of-use-asset533568 Regulatory assets4,6073,974Pension and retiree benefits3,2753,269Fair value of derivative assets4885Other deferred charges and noncurrent assets 316182TOTAL OTHER NONCURRENT ASSETS9,1878,486TOTAL ASSETS$66,331$69,065 Accounts receivable - customers, net allowance for uncollectible accounts of $360 and $322 in 2023 and 2022, respectively Other receivables, net allowance for uncollectible accounts of $13 and $10 in 2023 and 2022, respectively Non-utility property, net accumulated depreciation of $24 and $23 in 2023 and 2022, respectively The accompanying notes are an integral part of these financial statements. CON EDISON ANNUAL REPORT 202387 CON EDISON ANNUAL REPORT 202387 CON EDISON ANNUAL REPORT 202387 CON EDISON ANNUAL REPORT 2023 87 **Current (2025):** (Millions of Dollars)December 31, 2024December 31, 2023ASSETSCURRENT ASSETSCash and temporary cash investments$1,324$1,189Accounts receivable - customers, net allowance for uncollectible accounts of $620 and $360 in 2024 and 2023, respectively2,4402,418Other receivables, net allowance for uncollectible accounts of $41 and $13 in 2024 and 2023, respectively292444Accrued unbilled revenue848722Taxes receivable1451Fuel oil, gas in storage, materials and supplies, at average cost485469Prepayments445470Regulatory assets141281Revenue decoupling mechanism receivable202203Fair value of derivative assets1552Assets held for sale133163Other current assets 194125TOTAL CURRENT ASSETS6,6646,537INVESTMENTS1,126999UTILITY PLANT, AT ORIGINAL COSTElectric41,20639,071Gas15,12714,318Steam3,1873,085General4,8514,835TOTAL64,37161,309Less: Accumulated depreciation15,38414,157Net48,98747,152Construction work in progress3,1652,442NET UTILITY PLANT52,15249,594NON-UTILITY PLANTNon-utility property, net accumulated depreciation of $25 and $24 in 2024 and 2023, respectively1213Construction work in progress11NET PLANT52,16549,608OTHER NONCURRENT ASSETSGoodwill408408Operating lease right-of-use-asset493533 Regulatory assets5,5234,607Pension and retiree benefits3,7913,275Fair value of derivative assets2748Other deferred charges and noncurrent assets 365316TOTAL OTHER NONCURRENT ASSETS10,6079,187TOTAL ASSETS$70,562$66,331 Accounts receivable - customers, net allowance for uncollectible accounts of $620 and $360 in 2024 and 2023, respectively Other receivables, net allowance for uncollectible accounts of $41 and $13 in 2024 and 2023, respectively Non-utility property, net accumulated depreciation of $25 and $24 in 2024 and 2023, respectively The accompanying notes are an integral part of these financial statements. 90CON EDISON ANNUAL REPORT 2024 90CON EDISON ANNUAL REPORT 2024 90CON EDISON ANNUAL REPORT 2024 90 --- ## Modified: For the Years Ended December 31, **Key changes:** - Reworded sentence: "88CON EDISON ANNUAL REPORT 2024 88CON EDISON ANNUAL REPORT 2024 88CON EDISON ANNUAL REPORT 2024 88" **Prior (2024):** The accompanying notes are an integral part of these financial statements. CON EDISON ANNUAL REPORT 202385 CON EDISON ANNUAL REPORT 202385 CON EDISON ANNUAL REPORT 202385 CON EDISON ANNUAL REPORT 2023 85 **Current (2025):** The accompanying notes are an integral part of these financial statements. 88CON EDISON ANNUAL REPORT 2024 88CON EDISON ANNUAL REPORT 2024 88CON EDISON ANNUAL REPORT 2024 88 --- ## Modified: Con Edison Transmission **Key changes:** - Reworded sentence: "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." - Added sentence: "In January 2025, the President of the United States issued an executive order temporarily withdrawing all areas on the outer continental shelf from new offshore wind leasing, pending review by the new Administration, noting that nothing in this withdrawal affects rights under existing leases in the withdrawn areas, and further that with respect to such existing leases, the Secretary of the Interior, in consultation with the Attorney General as needed, shall conduct a comprehensive review of the ecological, economic, and environmental necessity of terminating or amending any existing wind energy leases." - Added sentence: "See "Federal Regulation" in Item 1." - Added sentence: "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." - Reworded sentence: "Certain financial data of Con Edison's businesses are presented below: 56CON EDISON ANNUAL REPORT 2024 56CON EDISON ANNUAL REPORT 2024 56CON EDISON ANNUAL REPORT 2024 56 For the Year Ended December 31, 2024At December 31, 2024(Millions of Dollars,except percentages)OperatingRevenuesNet Income for Common StockAssetsCECONY$14,12993 %$1,74896 %$65,65092 %O&R1,1257 %1046 %4,0606 %Total Utilities15,254100 %1,852102 %69,71098 %Con Edison Transmission4 - %452 %4691 %Other (a)(2) - %(77)(4)%3831 %Total Con Edison$15,256100 %$1,820100 %$70,562100 % (a)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." **Prior (2024):** Con Edison Transmission has no properties. Con Edison Transmission has ownership interests in electric and gas transmission companies. For information about these companies, see "Con Edison Transmission" in Item 1 (which information is incorporated herein by reference). Item 3: Legal Proceedings For information about certain legal proceedings affecting the Companies, see "Other Regulatory Matters" in Note B and "Superfund Sites" and "Asbestos Proceedings" in Note G and "Manhattan Explosion and Fire" in Note H to the financial statements in Item 8 and "Environmental Matters - CECONY" and "Environmental Matters - O&R" in Item 1 of this report, which information is incorporated herein by reference. Item 4: Mine Safety Disclosures Not applicable. 46CON EDISON ANNUAL REPORT 2023 46CON EDISON ANNUAL REPORT 2023 46CON EDISON ANNUAL REPORT 2023 46 CON EDISON ANNUAL REPORT 2023 **Current (2025):** Con Edison Transmission has no properties. Con Edison Transmission has ownership interests in electric and gas transmission companies. For information about these companies, see "Con Edison Transmission" in Item 1 (which information is incorporated herein by reference). Item 3: Legal Proceedings For information about certain legal proceedings affecting the Companies, see "Other Regulatory Matters" in Note B and "Superfund Sites" and "Asbestos Proceedings" in Note G and "Manhattan Explosion and Fire" in Note H to the financial statements in Item 8 and "Environmental Matters - CECONY" and "Environmental Matters - O&R" in Item 1 of this report, which information is incorporated herein by reference. Item 4: Mine Safety Disclosures Not applicable. CON EDISON ANNUAL REPORT 202451 CON EDISON ANNUAL REPORT 202451 CON EDISON ANNUAL REPORT 202451 51 --- *Data sourced from SEC EDGAR. Last updated 2026-06-01.*