[10-Q] CONSOLIDATED EDISON INC Quarterly Earnings Report
Filing Impact
Filing Sentiment
Form Type
10-Q
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
| Quarterly Report Pursuant To Section 13 or 15(d) of the Securities Exchange Act of 1934 | |||||
FOR THE QUARTERLY PERIOD ENDED March 31, 2026
OR
| Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 | |||||
For the transition period from to
| Commission File Number | Exact name of registrant as specified in its charter and principal executive office address and telephone number | State of Incorporation | I.R.S. Employer ID. Number | |||||||||||||||||||||||||||||
Securities Registered Pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
Consolidated Edison, Inc. | ||||||||||||||
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
| Consolidated Edison, Inc. (Con Edison) | ☒ | No ☐ | |||||||||
| Consolidated Edison Company of New York, Inc. (CECONY) | ☒ | No ☐ | |||||||||
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
| Con Edison | ☒ | No ☐ | |||||||||
| CECONY | ☒ | No ☐ | |||||||||
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
| Con Edison | ||||||||||||||||||||
| ☒ | Accelerated filer ☐ | Non-accelerated filer | ☐ | |||||||||||||||||
| Smaller reporting company | Emerging growth company | |||||||||||||||||||
| CECONY | ||||||||||||||||||||
Large accelerated filer | ☐ | Accelerated filer ☐ | ☒ | |||||||||||||||||
| Smaller reporting company | Emerging growth company | |||||||||||||||||||
1
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
| Con Edison | Yes | No | ☒ | |||||||||||
| CECONY | Yes | No | ☒ | |||||||||||
As of April 30, 2026, Con Edison had outstanding 368,529,705 Common Shares ($.10 par value). All of the outstanding common equity of CECONY is held by Con Edison.
Filing Format
This Quarterly Report on Form 10-Q is a combined report being filed separately by two different registrants: Consolidated Edison, Inc. (Con Edison) and Consolidated Edison Company of New York, Inc. (CECONY). CECONY is a wholly-owned subsidiary of Con Edison and, as such, the information in this report about CECONY also applies to Con Edison. As used in this report, the term the “Companies” refers to Con Edison and CECONY. However, CECONY makes no representation as to the information contained in this report relating to Con Edison or the subsidiaries of Con Edison other than itself.
2
Glossary of Terms
The following is a glossary of abbreviations or acronyms that are used in the Companies’ SEC reports:
| Con Edison Companies | ||||||||
| Con Edison | Consolidated Edison, Inc. | |||||||
| CECONY | Consolidated Edison Company of New York, Inc. | |||||||
| Clean Energy Businesses | Con Edison Clean Energy Businesses, Inc., a former subsidiary of Con Edison | |||||||
| Con Edison Transmission | Con Edison Transmission, Inc., together with its subsidiaries | |||||||
| O&R | Orange and Rockland Utilities, Inc. | |||||||
| RECO | Rockland Electric Company | |||||||
| The Companies | Con Edison and CECONY | |||||||
| The Utilities | CECONY and O&R | |||||||
| Regulatory Agencies, Government Agencies and Other Organizations | ||||||||
| FASB | Financial Accounting Standards Board | |||||||
| FERC | Federal Energy Regulatory Commission | |||||||
| IRS | Internal Revenue Service | |||||||
| NJBPU | New Jersey Board of Public Utilities | |||||||
| NYISO | New York Independent System Operator | |||||||
| NYPA | New York Power Authority | |||||||
| NYSDPS | New York State Department of Public Service | |||||||
| NYSPSC | New York State Public Service Commission | |||||||
| PJM | PJM Interconnection LLC | |||||||
| SEC | U.S. Securities and Exchange Commission | |||||||
| Accounting | ||||||||
| AFUDC | Allowance for Funds Used During Construction | |||||||
| ASC | Accounting Standards Codification Topic | |||||||
| ASU | Accounting Standards Update | |||||||
| GAAP | Generally Accepted Accounting Principles in the United States of America | |||||||
| HLBV | Hypothetical Liquidation at Book Value | |||||||
| VIE | Variable Interest Entity | |||||||
3
| Environmental | ||||||||
| GHG | Greenhouse gases | |||||||
| Superfund | Federal Comprehensive Environmental Response, Compensation and Liability Act of 1980 and similar state statutes | |||||||
| Units of Measure | ||||||||
| Dt | Dekatherm | |||||||
| kWh | Kilowatt-hour | |||||||
| MMlb | Million pounds | |||||||
| MW | Megawatt or thousand kilowatts | |||||||
| MWh | Megawatt hour | |||||||
| Other | ||||||||
| COVID-19 | Coronavirus Disease 2019 and any mutations or variants thereof | |||||||
First Quarter Financial Statements | Consolidated financial statements included in the Companies' Quarterly Report on Form 10-Q for the quarterly period ended March 31 of the current year | |||||||
| IRA | The federal Inflation Reduction Act, as enacted on August 16, 2022 | |||||||
| OBBBA | The federal One Big Beautiful Bill Act, as enacted on July 4, 2025 | |||||||
| TCJA | The federal Tax Cuts and Jobs Act of 2017, as enacted on December 22, 2017 | |||||||
4
TABLE OF CONTENTS
| PAGE | ||||||||
PART I—Financial Information | ||||||||
| ITEM 1 | Financial Statements (Unaudited) | |||||||
| Con Edison | ||||||||
Consolidated Income Statement | 7 | |||||||
Consolidated Statement of Comprehensive Income | 8 | |||||||
Consolidated Statement of Cash Flows | 9 | |||||||
Consolidated Balance Sheet | 10 | |||||||
Consolidated Statement of Shareholders' Equity | 12 | |||||||
| CECONY | ||||||||
Consolidated Income Statement | 13 | |||||||
Consolidated Statement of Comprehensive Income | 14 | |||||||
Consolidated Statement of Cash Flows | 15 | |||||||
Consolidated Balance Sheet | 16 | |||||||
Consolidated Statement of Shareholder’s Equity | 18 | |||||||
Notes to the Financial Statements (Unaudited) | 19 | |||||||
Note A - Summary of Significant Accounting Policies and Other Matters | 19 | |||||||
Note B - Regulatory Matters | 20 | |||||||
Note C - Capitalization | 24 | |||||||
Note D - Short-Term Borrowing | 24 | |||||||
Note E - Pension Benefits | 25 | |||||||
Note F - Other Postretirement Benefits | 25 | |||||||
Note G - Environmental Matters | 26 | |||||||
Note H - Material Contingencies | 28 | |||||||
Note I - Leases | 29 | |||||||
Note J - Income Tax | 29 | |||||||
Note K - Revenue Recognition | 30 | |||||||
Note L - Current Expected Credit Losses | 31 | |||||||
Note M - Financial Information by Business Segment | 33 | |||||||
Note N - Derivative Instruments and Hedging Activities | 35 | |||||||
Note O - Fair Value Measurements | 37 | |||||||
Note P - Related Party Transactions | 39 | |||||||
Note Q - Dispositions | 40 | |||||||
| ITEM 2 | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 41 | ||||||
| ITEM 3 | Quantitative and Qualitative Disclosures About Market Risk | 64 | ||||||
| ITEM 4 | Controls and Procedures | 65 | ||||||
PART II—Other Information | 66 | |||||||
| ITEM 1 | Legal Proceedings | 66 | ||||||
| ITEM 1A | Risk Factors | 66 | ||||||
| ITEM 5 | Other Information | 66 | ||||||
| ITEM 6 | Exhibits | 66 | ||||||
Signatures | 67 | |||||||
5
FORWARD-LOOKING STATEMENTS
This report contains forward-looking statements that are intended to qualify for the safe-harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are statements of future expectations and not facts. Words such as “forecasts,” “expects,” “estimates,” “anticipates,” “intends,” “believes,” “plans,” “will,” “target,” “guidance,” “potential,” "goal," “consider” and similar expressions identify forward-looking statements. The forward-looking statements reflect information available and assumptions at the time the statements are made, and accordingly speak only as of that time. Actual results or developments might differ materially from those included in the forward-looking statements because of various factors such as those identified in reports the Companies have filed with the Securities and Exchange Commission, including, but not limited to:
•the Companies are extensively regulated and may be subject to substantial penalties;
•the Utilities’ rate plans may not provide a reasonable return;
•the Companies may be adversely affected by changes to the Utilities’ rate plans;
•the failure of, or damage to, the Companies’ facilities could adversely affect the Companies;
•a cyber attack could adversely affect the Companies;
•artificial intelligence is an emerging area of technology that has the potential to impact various aspects of the Companies' business operations and customer interactions;
•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 are exposed to risks from the environmental consequences of their operations, including increased costs related to climate change;
•Con Edison’s ability to pay dividends or interest depends on dividends from its subsidiaries;
•changes to tax laws could adversely affect the Companies;
•the Companies require access to capital markets to satisfy funding requirements;
•a disruption in the wholesale energy markets, increased commodity costs or failure by an energy supplier or customer could adversely affect the Companies;
•the Companies face risks related to health epidemics and other outbreaks;
•the Companies’ strategies may not be effective to address changes in the external business environment;
•the Companies face risks related to supply chain disruptions, inflation and the imposition of tariffs (or subsequent changes to tariffs once announced or implemented); and
•the Companies also face other risks that are beyond their control.
This list of factors is not all-inclusive because it is not possible to predict all factors that could cause actual results or developments to differ from the forward-looking statements. The Companies assume no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
6
Consolidated Edison, Inc.
CONSOLIDATED INCOME STATEMENT (UNAUDITED)
| For the Three Months Ended March 31, | ||||||||||||||
| (Millions of Dollars/Except Share Data) | 2026 | 2025 | ||||||||||||
| OPERATING REVENUES | ||||||||||||||
| Electric | $ | $ | ||||||||||||
| Gas | ||||||||||||||
| Steam | ||||||||||||||
| Non-utility | ||||||||||||||
| TOTAL OPERATING REVENUES | ||||||||||||||
| OPERATING EXPENSES | ||||||||||||||
| Purchased power | ||||||||||||||
| Fuel | ||||||||||||||
| Gas purchased for resale | ||||||||||||||
| Other operations and maintenance | ||||||||||||||
| Depreciation and amortization | ||||||||||||||
| Taxes, other than income taxes | ||||||||||||||
| TOTAL OPERATING EXPENSES | ||||||||||||||
| OPERATING INCOME | ||||||||||||||
| Gain on sale of interest in Mountain Valley Pipeline, LLC | ||||||||||||||
| OTHER INCOME (DEDUCTIONS) | ||||||||||||||
| Investment income | ||||||||||||||
| Other income | ||||||||||||||
| Allowance for equity funds used during construction | ||||||||||||||
| Other deductions | ( | ( | ||||||||||||
| TOTAL OTHER INCOME | ||||||||||||||
| INCOME BEFORE INTEREST AND INCOME TAX EXPENSE | ||||||||||||||
| INTEREST EXPENSE (INCOME) | ||||||||||||||
| Interest on long-term debt | ||||||||||||||
| Other interest expense | ||||||||||||||
| Allowance for borrowed funds used during construction | ( | ( | ||||||||||||
| NET INTEREST EXPENSE | ||||||||||||||
| INCOME BEFORE INCOME TAX EXPENSE | ||||||||||||||
| INCOME TAX EXPENSE | ||||||||||||||
| NET INCOME | $ | $ | ||||||||||||
| Net income per common share - basic | $ | $ | ||||||||||||
| Net income per common share - diluted | $ | $ | ||||||||||||
| AVERAGE NUMBER OF SHARES OUTSTANDING—BASIC (IN MILLIONS) | ||||||||||||||
| AVERAGE NUMBER OF SHARES OUTSTANDING—DILUTED (IN MILLIONS) | ||||||||||||||
The accompanying notes are an integral part of these financial statements.
7
Consolidated Edison, Inc.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)
| Three Months Ended March 31, | ||||||||||||||
| (Millions of Dollars) | 2026 | 2025 | ||||||||||||
| NET INCOME | $ | $ | ||||||||||||
| OTHER COMPREHENSIVE LOSS, NET OF TAXES | ||||||||||||||
| Pension and other postretirement benefit plan liability adjustments, net of taxes | ( | ( | ||||||||||||
| TOTAL OTHER COMPREHENSIVE LOSS, NET OF TAXES | ( | ( | ||||||||||||
| COMPREHENSIVE INCOME | $ | $ | ||||||||||||
The accompanying notes are an integral part of these financial statements.
8
Consolidated Edison, Inc.
CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
The accompanying notes are an integral part of these financial statements.
| For the Three Months Ended March 31, | ||||||||
| (Millions of Dollars) | 2026 | 2025 | ||||||
| OPERATING ACTIVITIES | ||||||||
| Net income | $ | $ | ||||||
| PRINCIPAL NON-CASH CHARGES (CREDITS) TO INCOME | ||||||||
| Depreciation and amortization | ||||||||
| Deferred income taxes | ||||||||
| Rate case amortization and accruals | ( | |||||||
| Common equity component of allowance for funds used during construction | ( | ( | ||||||
| Gain on sale of interest in Mountain Valley Pipeline, LLC | ( | |||||||
| Other non-cash items, net | ( | |||||||
| CHANGES IN ASSETS AND LIABILITIES | ||||||||
| Accounts receivable – customers, net | ( | ( | ||||||
| Unbilled revenue and net unbilled revenue deferrals | ( | ( | ||||||
| Other receivables, net and other current assets | ||||||||
| Taxes receivable | ( | |||||||
| Prepayments | ( | ( | ||||||
| Accounts payable | ( | ( | ||||||
| Pensions and retiree benefits obligations, net | ( | ( | ||||||
| Pensions and retiree benefits contributions | ( | ( | ||||||
| Accrued taxes | ( | |||||||
| Accrued interest | ||||||||
| Superfund and other environmental costs, net | ( | ( | ||||||
| Distributions from equity investments | ||||||||
| Deferred charges, noncurrent assets, leases, net and other regulatory assets | ( | ( | ||||||
| Deferred credits, noncurrent liabilities and other regulatory liabilities | ||||||||
| Other current liabilities | ( | |||||||
| NET CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
| INVESTING ACTIVITIES | ||||||||
| Utility capital expenditures | ( | ( | ||||||
| Cost of removal less salvage | ( | ( | ||||||
| Non-utility capital expenditures | ( | |||||||
| Proceeds from sale of interest in Mountain Valley Pipeline, LLC | ||||||||
| Proceeds from sale of Broken Bow II, net of cash and cash equivalents sold | ||||||||
| Other investing activities | ( | ( | ||||||
| NET CASH FLOWS USED IN INVESTING ACTIVITIES | ( | ( | ||||||
| FINANCING ACTIVITIES | ||||||||
| Net payment of short-term debt (Maturities 90 days or less) | ( | ( | ||||||
| Payment of short-term debt (Maturities greater than 90 days) | ( | |||||||
| Borrowing under term loan | ||||||||
| Repayment of term loan | ( | |||||||
| Debt issuance costs | ( | ( | ||||||
| Common stock dividends | ( | ( | ||||||
| Issuance of common shares - public offering | ||||||||
| Issuance of common shares for stock plans | ||||||||
| NET CASH FLOWS USED IN FINANCING ACTIVITIES | ( | ( | ||||||
| CASH, TEMPORARY CASH INVESTMENTS, AND RESTRICTED CASH: | ||||||||
| NET CHANGE FOR THE PERIOD | ( | ( | ||||||
| BALANCE AT BEGINNING OF PERIOD | ||||||||
| BALANCE AT END OF PERIOD | $ | $ | ||||||
| SUPPLEMENTAL DISCLOSURE OF CASH INFORMATION | ||||||||
| Cash paid (received) during the period for: | ||||||||
| Interest, net of capitalized interest | $ | $ | ||||||
| Income taxes | $( | $( | ||||||
| SUPPLEMENTAL DISCLOSURE OF NON-CASH INFORMATION | ||||||||
| Capital expenditures in accounts payable | $ | $ | ||||||
| Issuance of common shares for dividend reinvestment | $ | $ | ||||||
| Equipment acquired but unpaid as of end of period | $ | $ | ||||||
9
Consolidated Edison, Inc.
CONSOLIDATED BALANCE SHEET (UNAUDITED)
| (Millions of Dollars) | March 31, 2026 | December 31, 2025 | ||||||
| ASSETS | ||||||||
| CURRENT ASSETS | ||||||||
| Cash and temporary cash investments | $ | $ | ||||||
Accounts receivable – customers, net allowance for uncollectible accounts of $ | ||||||||
Other receivables, net allowance for uncollectible accounts of $ | ||||||||
| Accrued unbilled revenue | ||||||||
Taxes receivable | ||||||||
| Fuel oil, gas in storage, materials and supplies, at average cost | ||||||||
| Prepayments | ||||||||
| Regulatory assets | ||||||||
| Revenue decoupling mechanism receivable | ||||||||
| Fair value of derivative assets | ||||||||
| Other current assets | ||||||||
| TOTAL CURRENT ASSETS | ||||||||
| INVESTMENTS | ||||||||
| UTILITY PLANT, AT ORIGINAL COST | ||||||||
| Electric | ||||||||
| Gas | ||||||||
| Steam | ||||||||
| General | ||||||||
| TOTAL | ||||||||
| Less: Accumulated depreciation | ||||||||
| Net | ||||||||
| Construction work in progress | ||||||||
| NET UTILITY PLANT | ||||||||
| NON-UTILITY PLANT | ||||||||
Non-utility property, net accumulated depreciation of $ | ||||||||
| NET PLANT | ||||||||
| OTHER NONCURRENT ASSETS | ||||||||
| Goodwill | ||||||||
| Regulatory assets | ||||||||
| Pension and retiree benefits | ||||||||
| Operating lease right-of-use asset | ||||||||
| Fair value of derivative assets | ||||||||
| Other deferred charges and noncurrent assets | ||||||||
| TOTAL OTHER NONCURRENT ASSETS | ||||||||
| TOTAL ASSETS | $ | $ | ||||||
The accompanying notes are an integral part of these financial statements.
10
Consolidated Edison, Inc.
CONSOLIDATED BALANCE SHEET (UNAUDITED)
| (Millions, except per share amounts) | March 31, 2026 | December 31, 2025 | ||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| CURRENT LIABILITIES | ||||||||
| Long-term debt due within one year | $ | $ | ||||||
| Term loan | ||||||||
| Notes payable | ||||||||
| Accounts payable | ||||||||
| Customer deposits | ||||||||
| Accrued taxes | ||||||||
| Accrued interest | ||||||||
| Accrued wages | ||||||||
| Fair value of derivative liabilities | ||||||||
| Regulatory liabilities | ||||||||
| System benefit charge | ||||||||
| Operating lease liabilities | ||||||||
| Other current liabilities | ||||||||
| TOTAL CURRENT LIABILITIES | ||||||||
| NONCURRENT LIABILITIES | ||||||||
| Provision for injuries and damages | ||||||||
| Pensions and retiree benefits | ||||||||
| Superfund and other environmental costs | ||||||||
| Asset retirement obligations | ||||||||
| Fair value of derivative liabilities | ||||||||
| Deferred income taxes and unamortized investment tax credits | ||||||||
| Operating lease liabilities | ||||||||
| Regulatory liabilities | ||||||||
| Other deferred credits and noncurrent liabilities | ||||||||
| TOTAL NONCURRENT LIABILITIES | ||||||||
| LONG-TERM DEBT | ||||||||
| Commitments, Contingencies, and Guarantees (Note B, Note G, and Note H) | ||||||||
| SHAREHOLDERS' EQUITY | ||||||||
Common stock, $ | ||||||||
Treasury stock, $ | ( | ( | ||||||
| Additional paid-in-capital | ||||||||
| Retained earnings | ||||||||
| Accumulated other comprehensive income | ||||||||
| Capital stock expense | ( | ( | ||||||
| TOTAL SHAREHOLDERS' EQUITY | ||||||||
| TOTAL LIABILITIES AND EQUITY | $ | $ | ||||||
The accompanying notes are an integral part of these financial statements.
11
Consolidated Edison, Inc.
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (UNAUDITED)
| (In Millions, except for dividends per share) | Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Capital Stock Expense | Accumulated Other Comprehensive Income (Loss) | Total | ||||||||||||||||||||||
| Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||
| BALANCE AS OF DECEMBER 31, 2024 | $ | $ | $ | $( | $( | $ | $ | ||||||||||||||||||||||
| Net income | |||||||||||||||||||||||||||||
Common stock dividends ($ | ( | ( | |||||||||||||||||||||||||||
| Issuance of common shares - public offering | ( | ||||||||||||||||||||||||||||
| Issuance of common shares for stock plans | |||||||||||||||||||||||||||||
| Other comprehensive loss | ( | ( | |||||||||||||||||||||||||||
| BALANCE AS OF MARCH 31, 2025 | $ | $ | $ | $( | $( | $ | $ | ||||||||||||||||||||||
| BALANCE AS OF DECEMBER 31, 2025 | $ | $ | $ | $( | $( | $ | $ | ||||||||||||||||||||||
| Net income | |||||||||||||||||||||||||||||
Common stock dividends ($ | ( | ( | |||||||||||||||||||||||||||
| Issuance of common shares - public offering | |||||||||||||||||||||||||||||
| Issuance of common shares for stock plans | ( | ||||||||||||||||||||||||||||
| Stock awards | |||||||||||||||||||||||||||||
| Other comprehensive loss | ( | ( | |||||||||||||||||||||||||||
| BALANCE AS OF MARCH 31, 2026 | $ | $ | $ | $( | $( | $ | $ | ||||||||||||||||||||||
The accompanying notes are an integral part of these financial statements.
12
Consolidated Edison Company of New York, Inc.
CONSOLIDATED INCOME STATEMENT (UNAUDITED)
| For the Three Months Ended March 31, | ||||||||
| (Millions of Dollars) | 2026 | 2025 | ||||||
| OPERATING REVENUES | ||||||||
| Electric | $ | $ | ||||||
| Gas | ||||||||
| Steam | ||||||||
| TOTAL OPERATING REVENUES | ||||||||
| OPERATING EXPENSES | ||||||||
| Purchased power | ||||||||
| Fuel | ||||||||
| Gas purchased for resale | ||||||||
| Other operations and maintenance | ||||||||
| Depreciation and amortization | ||||||||
| Taxes, other than income taxes | ||||||||
| TOTAL OPERATING EXPENSES | ||||||||
| OPERATING INCOME | ||||||||
| OTHER INCOME (DEDUCTIONS) | ||||||||
| Investment and other income | ||||||||
| Allowance for equity funds used during construction | ||||||||
| Other deductions | ( | ( | ||||||
| TOTAL OTHER INCOME | ||||||||
| INCOME BEFORE INTEREST AND INCOME TAX EXPENSE | ||||||||
| INTEREST EXPENSE (INCOME) | ||||||||
| Interest on long-term debt | ||||||||
| Other interest expense | ||||||||
| Allowance for borrowed funds used during construction | ( | ( | ||||||
| NET INTEREST EXPENSE | ||||||||
| INCOME BEFORE INCOME TAX EXPENSE | ||||||||
| INCOME TAX EXPENSE | ||||||||
| NET INCOME | $ | $ | ||||||
The accompanying notes are an integral part of these financial statements.
13
Consolidated Edison Company of New York, Inc.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)
| For the Three Months Ended March 31, | ||||||||
| (Millions of Dollars) | 2026 | 2025 | ||||||
| NET INCOME | $733 | $ | ||||||
| OTHER COMPREHENSIVE LOSS, NET OF TAXES | ||||||||
| Pension and other postretirement benefit plan liability adjustments, net of taxes | — | ( | ||||||
| TOTAL OTHER COMPREHENSIVE LOSS, NET OF TAXES | — | ( | ||||||
| COMPREHENSIVE INCOME | $733 | $ | ||||||
The accompanying notes are an integral part of these financial statements.
14
Consolidated Edison Company of New York, Inc.
CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
| For the Three Months Ended March 31, | ||||||||
| (Millions of Dollars) | 2026 | 2025 | ||||||
| OPERATING ACTIVITIES | ||||||||
| Net income | $ | $ | ||||||
| PRINCIPAL NON-CASH CHARGES (CREDITS) TO INCOME | ||||||||
| Depreciation and amortization | ||||||||
| Deferred income taxes | ||||||||
| Rate case amortization and accruals | ( | |||||||
| Common equity component of allowance for funds used during construction | ( | ( | ||||||
| Other non-cash items, net | ( | |||||||
| CHANGES IN ASSETS AND LIABILITIES | ||||||||
| Accounts receivable – customers, net | ( | ( | ||||||
| Other receivables, net and other current assets | ||||||||
| Unbilled revenue and net unbilled revenue deferrals | ( | |||||||
| Accounts receivable from (to) affiliated companies | ( | |||||||
| Prepayments | ( | ( | ||||||
| Accounts payable | ( | ( | ||||||
| Accounts payable from (to) affiliated companies | ||||||||
| Pensions and retiree benefits obligations, net | ( | ( | ||||||
| Pensions and retiree benefits contributions | ( | ( | ||||||
| Superfund and other environmental costs, net | ( | ( | ||||||
| Accrued taxes | ( | ( | ||||||
| Accrued interest | ||||||||
| Deferred charges, noncurrent assets, leases, net and other regulatory assets | ( | ( | ||||||
| Deferred credits, noncurrent liabilities and other regulatory liabilities | ||||||||
| Other current liabilities | ( | |||||||
| NET CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
| INVESTING ACTIVITIES | ||||||||
| Utility capital expenditures | ( | ( | ||||||
| Cost of removal less salvage | ( | ( | ||||||
| NET CASH FLOWS USED IN INVESTING ACTIVITIES | ( | ( | ||||||
| FINANCING ACTIVITIES | ||||||||
| Net payment of short-term debt (Maturities 90 days or less) | ( | ( | ||||||
| Payment of short-term debt (Maturities greater than 90 days) | ( | |||||||
| Borrowing under term loan | ||||||||
| Repayment of term loan | ( | |||||||
| Debt issuance costs | ( | ( | ||||||
| Capital contribution by Con Edison | ||||||||
| Dividend to Con Edison | ( | ( | ||||||
| NET CASH FLOWS USED IN FINANCING ACTIVITIES | ( | ( | ||||||
| CASH AND TEMPORARY CASH INVESTMENTS | ||||||||
| NET CHANGE FOR THE PERIOD | ( | ( | ||||||
| BALANCE AT BEGINNING OF PERIOD | ||||||||
| BALANCE AT END OF PERIOD | $ | $ | ||||||
| SUPPLEMENTAL DISCLOSURE OF CASH INFORMATION | ||||||||
| Cash paid during the period for: | ||||||||
| Interest, net of capitalized interest | $ | $ | ||||||
| SUPPLEMENTAL DISCLOSURE OF NON-CASH INFORMATION | ||||||||
| Capital expenditures in accounts payable | $ | $ | ||||||
| Equipment acquired but unpaid as of end of period | $ | $ | ||||||
The accompanying notes are an integral part of these financial statements.
15
Consolidated Edison Company of New York, Inc.
CONSOLIDATED BALANCE SHEET (UNAUDITED)
| (Millions of Dollars) | March 31, 2026 | December 31, 2025 | ||||||
| ASSETS | ||||||||
| CURRENT ASSETS | ||||||||
| Cash and temporary cash investments | $ | $ | ||||||
Accounts receivable – customers, net allowance for uncollectible accounts of $ | ||||||||
Other receivables, net allowance for uncollectible accounts of $ | ||||||||
| Accrued unbilled revenue | ||||||||
| Accounts receivable from affiliated companies | ||||||||
| Fuel oil, gas in storage, materials and supplies, at average cost | ||||||||
| Prepayments | ||||||||
| Regulatory assets | ||||||||
| Revenue decoupling mechanism receivable | ||||||||
| Fair value of derivative assets | ||||||||
| Other current assets | ||||||||
| TOTAL CURRENT ASSETS | ||||||||
| INVESTMENTS | ||||||||
| UTILITY PLANT, AT ORIGINAL COST | ||||||||
| Electric | ||||||||
| Gas | ||||||||
| Steam | ||||||||
| General | ||||||||
| TOTAL | ||||||||
| Less: Accumulated depreciation | ||||||||
| Net | ||||||||
| Construction work in progress | ||||||||
| NET UTILITY PLANT | ||||||||
| NON-UTILITY PROPERTY | ||||||||
Non-utility property, net accumulated depreciation of $ | ||||||||
| NET PLANT | ||||||||
| OTHER NONCURRENT ASSETS | ||||||||
| Regulatory assets | ||||||||
| Operating lease right-of-use asset | ||||||||
| Pension and retiree benefits | ||||||||
| Fair value of derivative assets | ||||||||
| Other deferred charges and noncurrent assets | ||||||||
| TOTAL OTHER NONCURRENT ASSETS | ||||||||
| TOTAL ASSETS | $ | $ | ||||||
The accompanying notes are an integral part of these financial statements.
16
Consolidated Edison Company of New York, Inc.
CONSOLIDATED BALANCE SHEET (UNAUDITED)
| (Millions, except per share amounts) | March 31, 2026 | December 31, 2025 | ||||||
| LIABILITIES AND SHAREHOLDER’S EQUITY | ||||||||
| CURRENT LIABILITIES | ||||||||
| Long-term debt due within one year | $ | $ | ||||||
| Term loan | ||||||||
| Notes payable | ||||||||
| Accounts payable | ||||||||
| Accounts payable to affiliated companies | ||||||||
| Customer deposits | ||||||||
| Accrued taxes | ||||||||
| Accrued taxes to affiliated companies | ||||||||
| Accrued interest | ||||||||
| Accrued wages | ||||||||
| Fair value of derivative liabilities | ||||||||
| Regulatory liabilities | ||||||||
| System benefit charge | ||||||||
| Operating lease liabilities | ||||||||
| Customer credits | ||||||||
| Other current liabilities | ||||||||
| TOTAL CURRENT LIABILITIES | ||||||||
| NONCURRENT LIABILITIES | ||||||||
| Provision for injuries and damages | ||||||||
| Pensions and retiree benefits | ||||||||
| Superfund and other environmental costs | ||||||||
| Asset retirement obligations | ||||||||
| Fair value of derivative liabilities | ||||||||
| Deferred income taxes and unamortized investment tax credits | ||||||||
| Operating lease liabilities | ||||||||
| Regulatory liabilities | ||||||||
| Other deferred credits and noncurrent liabilities | ||||||||
| TOTAL NONCURRENT LIABILITIES | ||||||||
| LONG-TERM DEBT | ||||||||
COMMITMENTS AND CONTINGENCIES (Note B, Note G and Note H) | ||||||||
| SHAREHOLDER’S EQUITY | ||||||||
Common stock, $ | ||||||||
| Repurchased Con Edison Stock | ( | ( | ||||||
| Additional paid-in-capital | ||||||||
| Retained earnings | ||||||||
| Accumulated other comprehensive income | ( | ( | ||||||
| Capital stock expense | ( | ( | ||||||
| TOTAL SHAREHOLDER'S EQUITY | ||||||||
| TOTAL LIABILITIES AND SHAREHOLDER’S EQUITY | $ | $ | ||||||
The accompanying notes are an integral part of these financial statements.
17
Consolidated Edison Company of New York, Inc.
CONSOLIDATED STATEMENT OF SHAREHOLDER’S EQUITY (UNAUDITED)
| Common Stock | Additional Paid-In Capital | Retained Earnings | Repurchased Con Edison Stock | Capital Stock Expense | Accumulated Other Comprehensive Income (Loss) | Total | ||||||||||||||||||||
| (In Millions) | Shares | Amount | ||||||||||||||||||||||||
| BALANCE AS OF DECEMBER 31, 2024 | $ | $ | $ | $( | $( | $ | $ | |||||||||||||||||||
| Net income | ||||||||||||||||||||||||||
| Common stock dividend to Con Edison | ( | ( | ||||||||||||||||||||||||
| Capital contribution by Con Edison | ( | |||||||||||||||||||||||||
| Other comprehensive loss | ( | ( | ||||||||||||||||||||||||
| BALANCE AS OF MARCH 31, 2025 | $ | $ | $ | $( | $( | $ | $ | |||||||||||||||||||
| BALANCE AS OF DECEMBER 31, 2025 | $ | $ | $ | $( | $( | $( | $ | |||||||||||||||||||
| Net income | ||||||||||||||||||||||||||
| Common stock dividend to Con Edison | ( | ( | ||||||||||||||||||||||||
| Capital contribution by Con Edison | ( | |||||||||||||||||||||||||
| Stock awards | ||||||||||||||||||||||||||
| BALANCE AS OF MARCH 31, 2026 | $ | $ | $ | $( | $( | $( | $ | |||||||||||||||||||
The accompanying notes are an integral part of these financial statements.
18
NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)
General
These combined notes accompany and form an integral part of the separate interim 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) and Con Edison Transmission, Inc. (together with its subsidiaries, Con Edison Transmission) in Con Edison’s consolidated financial statements. 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 contained in these combined notes relating to Con Edison or the subsidiaries of Con Edison other than itself.
The separate interim consolidated financial statements of each of the Companies are unaudited but, in the opinion of their respective managements, reflect all adjustments (which include only normally recurring adjustments) necessary for a fair statement of the results for the interim periods presented. The Companies’ separate interim consolidated financial statements should be read together with their separate audited financial statements (including the combined notes thereto) included in Item 8 of their combined Annual Report on Form 10-K for the year ended December 31, 2025.
Note A – Summary of Significant Accounting Policies and Other Matters
Accounting Policies
The accounting policies of Con Edison and its subsidiaries conform to generally accepted accounting principles in the United States of America (GAAP). For the Utilities, these accounting principles include the accounting rules for regulated operations and the accounting requirements of the Federal Energy Regulatory Commission (FERC) and the state regulators having jurisdiction.
Investments
Con Edison's investments consist primarily of the fair value of the Utilities' supplemental retirement income plan and deferred income plan assets.
In April 2026, CECONY and Con Edison Transmission entered into an agreement to sell their interests in Honeoye Storage Corporation (Honeoye) for $5 million in aggregate, of which approximately $1.5 million was attributed to CECONY, before certain closing adjustments and expenses. The closing is expected to occur following approval by the NYSPSC.
Investment in Mountain Valley Pipeline, LLC (MVP)
Reclassification
Certain prior period amounts have been reclassified to conform with the current period presentation.
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Earnings Per Share
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.
For the three months ended March 31, 2026 and 2025, basic and diluted EPS for Con Edison are calculated as follows:
| For the Three Months Ended March 31, | ||||||||||||||
| (Millions of Dollars, except per share amounts/Shares in Millions) | 2026 | 2025 | ||||||||||||
| Net income for common stock | $ | $ | ||||||||||||
| Weighted average common shares outstanding – basic | ||||||||||||||
| Add: Incremental shares attributable to effect of potentially dilutive securities | ||||||||||||||
| Adjusted weighted average common shares outstanding – diluted | ||||||||||||||
| Net Income per common share – basic | $ | $ | ||||||||||||
| Net Income per common share – diluted | $ | $ | ||||||||||||
The computation of diluted EPS for the three months ended March 31, 2026 and March 31, 2025 excluded an immaterial
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 March 31, 2026 and 2025, Con Edison and CECONY did not have material restricted cash balances.
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.
CECONY has an ongoing long-term electricity purchase agreement with Brooklyn Navy Yard Cogeneration Partners, LP, a potential VIE. In 2025, a request was made of this counterparty for information necessary to determine whether the entity was a VIE and whether CECONY is the primary beneficiary; however, the information was not made available. The payments for this contract constitute CECONY’s maximum exposure to loss with respect to the potential VIE.
Note B – Regulatory Matters
Rate Plans
CECONY – Steam
In November 2025, CECONY filed a request with the NYSPSC for a steam rate increase of $66 million, effective November 1, 2026. The filing reflects a return on common equity of 9.9 percent and a common equity ratio of 48 percent. The filing includes supplemental information regarding steam rate plans for November 2027 through October 2028, and November 2028 through October 2029, which the company is not requesting but would consider
20
through settlement discussions. For purposes of illustration, rate increases of $50 million and $50 million effective November 2027 and 2028, respectively, were calculated based on an assumed return on common equity of 9.9 percent and a common equity ratio of 48 percent.
In March 2026, the New York State Department of Public Service (NYSDPS) submitted testimony in the pending steam rate case proceeding supporting a steam rate increase of $18 million, reflecting, among other things, a 9.3 percent return on common equity and a common equity ratio of 47.5 percent.
Other Regulatory Matters
In January 2023, CECONY initiated a review of welds on certain gas and steam mains following the company’s discovery of a leak from a gas main weld in Queens, New York. During the course of its review thus far, CECONY discovered non-conforming gas and steam main welds. The non-conforming welds are not expected to have a significant impact on operations. New York regulations require utilities to perform and record weld films for certain gas and steam main welds. Upon reviewing these films, CECONY determined that in some instances third-party contractors engaged in misconduct by substituting duplicate weld films for different welds, while another third-party contractor had created poor quality weld films. CECONY voluntarily disclosed its initial review and findings to the NYSDPS which, in turn, initiated its own investigation into CECONY’s compliance with weld requirements under the New York State Public Service Law and the prudence of CECONY’s oversight of the weld testing process that could result in adverse regulatory action against the company. CECONY continues to investigate this matter, is remediating and monitoring non-conforming welds and continues to cooperate with the NYSDPS in its investigation. During the time period CECONY disclosed the issue to the NYSDPS, it also reported the contractors’ misconduct to law enforcement. In August 2025, two employees of the third-party contractors were indicted in the U.S. District Court for the Southern District of New York for wire fraud arising out of their scheme to defraud CECONY. Given the nature of the non-conforming welds identified, CECONY does not anticipate significant impact to the operation of its gas and steam mains. CECONY's authorized gas rate plan for the three-year period January 2026 through December 2028 provides that $33.3 million in annual gas revenue requirement ($100 million in aggregate from 2026 through 2028) will be recovered through a rate adjustment mechanism that is subject to refund to customers relating to this matter. NYSDPS’ testimony in the pending steam rate case recommended that recovery of $0.5 million of CECONY's steam revenue requirement through the rate adjustment mechanism be subject to refund for the welds matter. CECONY is unable to estimate the amount or range of its possible loss related to this matter.
In January 2018, the NYSPSC issued an order initiating a focused operations audit of the Utilities’ financial accounting for income taxes. The audit is investigating the Utilities’ inadvertent understatement of a portion, the amount of which may be material, of their calculation of total federal income tax expense for ratemaking purposes related to the calculation of plant retirement-related cost of removal. As a result of such understatement, the Utilities accumulated significant income tax regulatory assets ($1,031 million and $8 million for CECONY and O&R, respectively, as of March 31, 2026 and $1,049 million and $10 million for CECONY and O&R, respectively, as of December 31, 2025) which are not earning a return. While the Utilities have properly calculated and paid their federal income taxes and there is no uncertain tax position related to this matter, this understatement of historical income tax expense materially reduced the amount of revenue collected from the Utilities' customers in the past relative to what it should have been. The Utilities’ rate plans have reflected the correct amount of federal income taxes recoverable from customers, including a proportionate recovery of the regulatory asset, beginning with O&R’s rate plans effective November 2015, CECONY’s electric and gas rate plans effective January 2017, and CECONY’s steam plan effective November 2023. As part of the audit, the Utilities plan to pursue a private letter ruling from the Internal Revenue Service (IRS) confirming that the Utilities’ inadvertent understatement of prior years’ income tax expense constitutes a normalization violation that can be cured through an increase in future years’ revenue requirements until such time as the regulatory asset is fully recovered in rates, and not through a write-down of all or a portion of the Utilities’ regulatory asset. Under Accounting Standards Codification Topic (ASC) 740, the Utilities recorded an unfunded deferred federal income tax liability (with a gross-up amount) and a corresponding regulatory asset. The income tax regulatory assets are netted against the related regulatory liability for future income tax and are shown in the line “Future income tax” in the following table of Regulatory Assets and Liabilities and on the Companies’ consolidated balance sheets in the line “Regulatory liabilities.” Management’s assessment is that the income tax regulatory assets as of March 31, 2026 are probable of collection through future rates. The IRS provides safe harbor relief for inadvertent normalization violations through the jurisdictional rate setting process of including in rates adequate revenue to fully recover the deferred tax balance. However, the Utilities would record a liability or impair a portion of the regulatory assets associated with this understatement if the NYSPSC were to issue an order that required the Utilities to write off all or a portion of their existing regulatory asset. The Utilities are unable to
21
estimate the amount or range of their possible loss related to this matter. At March 31, 2026, the Utilities had not accrued a liability related to this matter.
Regulatory Assets and Liabilities
Regulatory assets and liabilities at March 31, 2026 and December 31, 2025 were comprised of the following items:
| Con Edison | CECONY | ||||||||||||||||
| (Millions of Dollars) | 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Regulatory assets | |||||||||||||||||
| Energy efficiency and other clean energy programs (a) | $ | $ | $ | $ | |||||||||||||
| Environmental investigation and remediation costs | |||||||||||||||||
| Customer account deferrals (b) | |||||||||||||||||
| Revenue taxes | |||||||||||||||||
| Legacy meters (c) | |||||||||||||||||
| Property tax reconciliation (d) | |||||||||||||||||
| Deferred storm costs (e) | |||||||||||||||||
| Deferred derivative losses-long-term | |||||||||||||||||
| Unrecognized pension and other postretirement costs | |||||||||||||||||
| Pension and other postretirement benefits deferrals | |||||||||||||||||
| Other | |||||||||||||||||
| Regulatory assets - noncurrent | |||||||||||||||||
| Recoverable energy cost | |||||||||||||||||
| Deferred derivative losses - short term | |||||||||||||||||
| Regulatory assets - current | |||||||||||||||||
| Total Regulatory Assets | $ | $ | $ | $ | |||||||||||||
| Regulatory liabilities | |||||||||||||||||
| Allowance for cost of removal less salvage (g) | $ | $ | $ | $ | |||||||||||||
| Future Income Tax* | |||||||||||||||||
| Unrecognized Other Postretirement Benefit Cost (f) | |||||||||||||||||
| Pension and Other Postretirement Employee Benefit Deferrals | |||||||||||||||||
| Net unbilled revenue deferrals | |||||||||||||||||
| Late Payment Charge Deferral | |||||||||||||||||
| System benefit charge carrying charge | |||||||||||||||||
| Deferred derivative gains – long term | |||||||||||||||||
| Storm reserve passback | |||||||||||||||||
| Settlement of prudence proceeding (h) | |||||||||||||||||
| Other | |||||||||||||||||
| Regulatory liabilities - noncurrent | |||||||||||||||||
| Deferred derivative gains | |||||||||||||||||
| Revenue decoupling mechanism liabilities | |||||||||||||||||
| Refundable energy costs current | |||||||||||||||||
| Regulatory liabilities - current | |||||||||||||||||
| Total Regulatory Liabilities | $ | $ | $ | $ | |||||||||||||
* See "Other Regulatory Matters" above.
(a) Energy Efficiency and Other Clean Energy Programs represent programs designed to increase energy efficiency achievements and other clean energy transformation efforts.
(b) Customer account deferrals include (1) deferrals under CECONY and O&R's electric and gas rate plans for the reconciliation of write-offs of customer accounts receivable balances to amounts reflected in rates as well as for increases to the allowance for uncollectible accounts receivable and (2) deferral related to the arrears relief programs. Amounts deferred under the arrears relief programs were $243.5 million and $0.3 million for CECONY and O&R at March 31, 2026, respectively, and $262.9 million and $0.8 million at December 31, 2025, respectively, and receive a return at the pre-tax weighted average cost of capital. The arrears relief programs' recovery periods end in August 2026 and April 2033, respectively.
(c) Pursuant to their rate plans, CECONY and O&R are recovering the costs of legacy meters over a 15-year period beginning January 1, 2024 and a 12-year period beginning January 1, 2022, respectively.
(d) Property tax reconciliation represents the amount deferred between actual property taxes incurred and the level included in rates subject to the provisions of the respective rate plans.
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(e) Deferred storm costs represent response and restoration costs, other than capital expenditures, in connection with Tropical Storm Isaias and other major storms that were deferred by the Utilities.
(f) Unrecognized pension and other postretirement costs represent the deferrals associated with the accounting rules for retirement benefits.
(g) Allowance for cost of removal less salvage represents cash previously collected from customers to fund future anticipated removal expenditures.
(h) Settlement of prudence proceeding represents the remaining amount to be credited to customers pursuant to a Joint Proposal, approved by the NYSPSC in April 2016, with respect to the prudence of certain CECONY expenditures and related matters.
In general, the Utilities receive or are being credited with a return at the Other Customer-Provided Capital rate for regulatory assets that have not been included in rate base, and receive or are being credited with a return at the pre-tax weighted average cost of capital once the asset is included in rate base. Similarly, the Utilities pay to or credit customers with a return at the Other Customer-Provided Capital rate for regulatory liabilities that have not been included in rate base, and pay to or credit customers with a return at the pre-tax weighted average cost of capital once the liability is included in rate base. The Other Customer-Provided Capital rate was 4.70 percent and 4.75 percent for the 2026 and 2025 rate years, respectively.
In general, the Utilities are receiving or being credited with a return on their regulatory assets for which a cash outflow has been made ($3,763 million and $3,421 million for Con Edison, and $3,530 million and $3,193 million for CECONY at March 31, 2026 and December 31, 2025, respectively). Regulatory liabilities are treated in a consistent manner. Regulatory assets of RECO for which a cash outflow has been made ($42 million at March 31, 2026 and $41 million at December 31, 2025) are not receiving or being credited with a return. RECO recovers regulatory assets over a period of up to four years or until they are addressed in its next base rate case in accordance with the rate provisions approved by the NJBPU. Regulatory liabilities are treated in a consistent manner.
Regulatory assets that represent future financial obligations and were deferred in accordance with the Utilities’ rate plans or orders issued by state regulators do not earn a return until such time as a cash outlay has been made. Regulatory liabilities are treated in a consistent manner. At March 31, 2026 and December 31, 2025, regulatory assets for Con Edison and CECONY that did not earn a return consisted of the following items:
Regulatory Assets Not Earning a Return*
| Con Edison | CECONY | ||||||||||||||||
| (Millions of Dollars) | 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Environmental investigation and remediation costs | $ | $ | $ | $ | |||||||||||||
| Revenue taxes | |||||||||||||||||
| Deferral for uncollectible accounts receivable | |||||||||||||||||
| Deferred derivative losses - short-term | |||||||||||||||||
| Deferred derivative losses - long-term | |||||||||||||||||
| Unrecognized pension and other postretirement costs | |||||||||||||||||
| Other | |||||||||||||||||
| Total | $ | $ | $ | $ | |||||||||||||
*This table presents regulatory assets not earning a return for which no cash outlay has been made.
The recovery periods for regulatory assets for which a cash outflow has not been made and that do not earn a return have not yet been determined, except as noted below, and are expected to be determined pursuant to the Utilities’ future rate plans to be filed or orders issued by the state regulators in connection therewith.
The deferral for revenue taxes represents the New York State metropolitan transportation business tax surcharge on the cumulative temporary differences between the book and tax basis of assets and liabilities of the Utilities, as well as the difference between taxes collected and paid by the Utilities to fund mass transportation. The Utilities recover the majority of the revenue taxes over the remaining book lives of the electric and gas plant assets, as well as the steam plant assets for CECONY.
The Utilities recover deferred derivative losses – short-term within one year , and noncurrent generally within three years .
23
Note C – Capitalization
In March 2026, Con Edison issued 7,000,000 shares of its common stock for approximately $776 million upon physical settlement of a forward sale agreement entered into by the company in February 2026.
The carrying amounts and fair values of long-term debt at March 31, 2026 and December 31, 2025 were:
| (Millions of Dollars) | 2026 | 2025 | ||||||||||||||||||||||||
| Long-Term Debt (including current portion) (a) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||||||||||||
| Con Edison | $ | $ | $ | $ | ||||||||||||||||||||||
| CECONY | $ | $ | $ | $ | ||||||||||||||||||||||
(a)Amounts shown are net of unamortized debt expense and unamortized debt discount of $246 million and $237 million for Con Edison and CECONY, respectively, as of March 31, 2026 and $249 million and $240 million for Con Edison and CECONY, respectively, as of December 31, 2025.
Note D – Short-Term Borrowing
In March 2026, Con Edison and the Utilities entered into a Credit Agreement (the Credit Agreement) that replaced a March 2023 Credit Agreement and a March 2025 CECONY 364-Day Revolving Credit Agreement under which banks are committed to provide loans and letters of credit, on a revolving credit basis. The Credit Agreement expires in March 2031, unless extended for up to two additional one-year terms. There is a maximum of $3,500 million of credit available. The full amount is available to CECONY and $800 million (subject to increase up to $1,000 million) is available to Con Edison, including up to $900 million of letters of credit. The Companies intend to use the Credit Agreement to support their commercial paper programs. Loans and letters of credit issued under the Credit Agreement may also be used for other general corporate purposes. Any borrowings under the Credit Agreement would generally be at variable interest rates. Interest and fees for loans and letters of credit under the Credit Agreement generally reflect the respective credit ratings of the Companies.
The banks’ commitments under the Credit Agreement are subject to certain conditions, including that there be no event of default or event which with notice or the lapse of time would become an event of default with respect to any company. The commitments are not subject to maintenance of credit rating levels or the absence of a material adverse change. Upon a change of control of, or upon an event of default by one of the companies, the banks may terminate their commitments with respect to that company, declare any amounts owed by that company immediately due and payable and require that company to provide cash collateral relating to the letters of credit issued for it under the Credit Agreement. Events of default for a company include, among other things, that company's failure to pay any principal of any loan or any draw under any letter of credit issued pursuant to the Credit Agreement when due; that company's failure to pay any interest or fees pursuant to the Credit Agreement within five days; that company's failure to meet certain covenants, including covenants that the company's ratio of consolidated debt to consolidated total capital not at any time exceed 0.65 to 1; the company creating, assuming or suffering a lien or other encumbrance on its assets exceeding 10 percent of that company's consolidated net tangible assets; that company failing to make one or more payments in respect of material financial obligations (in excess of $150 million in aggregate); the occurrence of an event or condition which results in the acceleration of the maturity of any material debt (in excess of $150 million in aggregate); and other customary events of default. At March 31, 2026 no loans or letters of credit were outstanding under the Credit Agreement, the March 2023 Credit Agreement or the March 2025 CECONY 364-Day Revolving Credit Agreement. The Companies were in compliance with their significant debt covenants at March 31, 2026.
In March 2026, CECONY repaid in full prior to maturity $500 million pursuant to a 364-Day Senior Unsecured Term Loan Agreement entered into by the company in November 2025.
At March 31, 2026, Con Edison had $869 million of commercial paper outstanding, of which $593 million of commercial paper was outstanding under CECONY’s program. The weighted average interest rate at March 31, 2026 was 4.0 1,575 million of
24
Note E – Pension Benefits
Total Periodic Benefit Credit
The components of the Companies’ total periodic benefit credit for the three months ended March 31, 2026 and 2025 were as follows:
| For the Three Months Ended March 31, | ||||||||||||||
| Con Edison | CECONY | |||||||||||||
| (Millions of Dollars) | 2026 | 2025 | 2026 | 2025 | ||||||||||
| Service cost – including administrative expenses | $ | $ | $ | $ | ||||||||||
| Interest cost on projected benefit obligation | ||||||||||||||
| Expected return on plan assets | ( | ( | ( | ( | ||||||||||
| Recognition of net actuarial gain | ( | ( | ( | ( | ||||||||||
| Recognition of prior service credit | ( | ( | ( | ( | ||||||||||
| TOTAL PERIODIC BENEFIT CREDIT | $( | $( | $( | $( | ||||||||||
| Cost capitalized | ( | ( | ( | ( | ||||||||||
| Reconciliation to rate level | ( | ( | ( | ( | ||||||||||
| Total credit recognized | $( | $( | $( | $( | ||||||||||
Components of net periodic benefit credit other than service cost are presented outside of operating income on the Companies’ consolidated income statements, and only the service cost component is eligible for capitalization. Accordingly, the service cost components are included in the line "Other operations and maintenance" and the non-service cost components are included in the lines "Other income" or "Other deductions" in the Companies' consolidated income statements.
Expected Contributions
Based on estimates as of March 31, 2026, the Companies expect to make contributions to the pension plans during 2026 of $31 million (of which $25 million is to be made by CECONY). The Companies’ policy is to fund the total periodic benefit cost of the qualified plan to the extent tax deductible and to also contribute to the non-qualified supplemental pension plans. An immaterial amount of funding is anticipated for the qualified plan during 2026, and during the first three months of 2026, the Companies contributed $7 million to the non-qualified supplemental pension plans, $6 million of which was contributed by CECONY.
Note F – Other Postretirement Benefits
Total Periodic Benefit Credit
The components of the Companies’ total periodic other postretirement benefit credit for the three months ended March 31, 2026 and 2025 were as follows:
| For the Three Months Ended March 31, | ||||||||||||||
| Con Edison | CECONY | |||||||||||||
| (Millions of Dollars) | 2026 | 2025 | 2026 | 2025 | ||||||||||
| Service cost - including administrative expenses | $ | $ | $ | $ | ||||||||||
| Interest cost on projected other postretirement benefit obligation | ||||||||||||||
| Expected return on plan assets | ( | ( | ( | ( | ||||||||||
| Recognition of net actuarial gain | ( | ( | ( | |||||||||||
| TOTAL PERIODIC OTHER POSTRETIREMENT CREDIT | $( | $( | $ | $( | ||||||||||
| Cost capitalized | ( | ( | ( | ( | ||||||||||
| Reconciliation to rate level | ||||||||||||||
| Total credit recognized | $( | $( | $ | $( | ||||||||||
The components of total periodic other postretirement credit are presented in the Companies' consolidated income statements consistent with the description of the components of net periodic benefit credit in Note E.
25
Expected Contributions
Note G – Environmental Matters
Superfund Sites
Hazardous substances, such as asbestos, polychlorinated biphenyls (PCBs) and coal tar, have been used or generated in the course of operations of the Utilities and their predecessors and are present at sites and in facilities and equipment they currently or previously owned, including sites at which gas was manufactured or stored.
The Federal Comprehensive Environmental Response, Compensation and Liability Act of 1980 and similar state statutes (Superfund) impose joint and several liability, regardless of fault, upon generators of hazardous substances for investigation and remediation costs (which include costs of demolition, removal, disposal, storage, replacement, containment and monitoring) and natural resource damages. Liability under these laws can be material and may be imposed for contamination from past acts, even though such past acts may have been lawful at the time they occurred. The sites at which the Utilities have been asserted to have liability under these laws, including their manufactured gas plant sites and any neighboring areas to which contamination may have migrated, are referred to herein as “Superfund Sites.”
For Superfund Sites where there are other potentially responsible parties and the Utilities are not managing the site investigation and remediation, the accrued liability represents an estimate of the amount the Utilities will need to pay to investigate and, where determinable, discharge their related obligations. For Superfund Sites (including the manufactured gas plant sites) for which one of the Utilities is managing the investigation and remediation, the accrued liability represents an estimate of the company's share of the undiscounted cost to investigate the sites and, for sites that have been investigated in whole or in part, the cost to remediate the sites, if remediation is necessary and if a reasonable estimate of such cost can be made. Remediation costs are estimated in light of the information available, applicable remediation standards and experience with similar sites.
The accrued liabilities and regulatory assets related to Superfund Sites at March 31, 2026 and December 31, 2025 were as follows:
| Con Edison | CECONY | |||||||||||||
| (Millions of Dollars) | 2026 | 2025 | 2026 | 2025 | ||||||||||
| Accrued Liabilities: | ||||||||||||||
| Manufactured gas plant sites | $ | $ | $ | $ | ||||||||||
| Other Superfund Sites | ||||||||||||||
| Total | $ | $ | $ | $ | ||||||||||
| Regulatory assets | $ | $ | $ | $ | ||||||||||
Most of the accrued Superfund Site liability relates to sites that have been investigated, in whole or in part. However, for some of the sites, the extent and associated cost of the required remediation has not yet been determined. As investigations progress and information pertaining to the required remediation becomes available, the Utilities expect that additional liability may be accrued, the amount of which is not presently determinable but may be material. The Utilities defer prudently incurred investigation and remediation costs as regulatory assets (for subsequent recovery through rates).
Environmental remediation costs incurred related to Superfund Sites for the three months ended March 31, 2026 and 2025 were as follows:
| For the Three Months Ended March 31, | ||||||||||||||
| Con Edison | CECONY | |||||||||||||
| (Millions of Dollars) | 2026 | 2025 | 2026 | 2025 | ||||||||||
| Remediation costs incurred | $ | $ | $ | $ | ||||||||||
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Insurance and other third-party recoveries received by Con Edison or CECONY were immaterial for the three months ended March 31, 2026 and 2025.
Con Edison and CECONY estimated that for their manufactured gas plant sites (including CECONY’s Astoria site), the aggregate undiscounted potential liability for the investigation and remediation of coal tar and/or other environmental contaminants could range up to $3,540 million and $3,380 million, respectively. These estimates were based on the assumption that there is contamination at all sites, including those that have not yet been fully investigated and additional assumptions about the extent of the contamination and the type and extent of the remediation that may be required. Actual experience may be materially different.
Asbestos Proceedings
Suits have been brought in New York State and federal courts against the Utilities and many other defendants, wherein a large number of plaintiffs sought significant compensatory and punitive damages for deaths and injuries allegedly caused by or relating to exposure to asbestos and asbestos-containing materials at various premises of the Utilities. The suits that have been resolved, that are many, have been resolved without any payment by the Utilities, or for amounts that were not, in the aggregate, material to them. The amounts specified in all the remaining thousands of suits total billions of dollars; however, the Utilities believe that these amounts are greatly exaggerated, based on the disposition of previous claims. At March 31, 2026 and December 31, 2025, Con Edison and CECONY have accrued their estimated aggregate undiscounted potential liabilities for these suits and additional suits that may be brought through 2040 as shown in the following table. These estimates were based upon a combination of modeling, historical data analysis and risk factor assessment. Courts have modified, and may continue to modify, standards for determining liability and the reasonableness of awards in asbestos suits. As a result, the Companies currently believe that there is a reasonable possibility of an exposure to loss in excess of the liability accrued for the suits. The Companies are unable to estimate the amount or range of such loss. In addition, certain current and former employees have claimed or are claiming workers’ compensation benefits based on alleged disability from exposure to asbestos. CECONY is permitted to defer as regulatory assets (for subsequent recovery through rates) costs incurred for its asbestos lawsuits and workers’ compensation claims.
The accrued liability for asbestos suits and workers’ compensation proceedings (including those related to asbestos exposure) and the amounts deferred as regulatory assets or liabilities for the Companies at March 31, 2026 and December 31, 2025 were as follows:
| Con Edison | CECONY | |||||||||||||
| (Millions of Dollars) | 2026 | 2025 | 2026 | 2025 | ||||||||||
| Accrued liability – asbestos suits | $ | $ | $ | $ | ||||||||||
| Regulatory assets – asbestos suits | ||||||||||||||
| Accrued liability – workers’ compensation | $ | $ | $ | $ | ||||||||||
| Regulatory liabilities – workers’ compensation | ||||||||||||||
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Note H – Material Contingencies
Manhattan Explosion and Fire
On March 12, 2014, two multi-use five-story tall buildings located on Park Avenue between 116th and 117th Streets in Manhattan were destroyed by an explosion and fire. CECONY had delivered gas to the buildings through service lines from a distribution main located below ground on Park Avenue. Eight people died and more than 50 people were injured. Additional buildings were also damaged. The National Transportation Safety Board (NTSB) investigated. The parties to the investigation included CECONY, the City of New York, the Pipeline and Hazardous Materials Safety Administration and the NYSPSC. In June 2015, the NTSB issued a final report concerning the incident, its probable cause and safety recommendations. The NTSB determined that the probable cause of the incident was (1) the failure of a defective fusion joint at a service tee (which joined a plastic service line to a plastic distribution main) installed by CECONY that allowed gas to leak from the distribution main and migrate into a building where it ignited and (2) a breach in a city sewer line that allowed groundwater and soil to flow into the sewer, resulting in a loss of support for the distribution main, that caused it to sag and overstressed the defective fusion joint. The NTSB also made safety recommendations, including recommendations to CECONY that addressed its procedures for the preparation and examination of plastic fusions, training of its staff on conditions for notifications to the city’s Fire Department and extension of its gas main isolation valve installation program. In February 2017, the NYSPSC approved a settlement agreement with CECONY related to the NYSPSC's investigations of the incident and the practices of qualifying persons to perform plastic fusions. Pursuant to the agreement, CECONY provided $27 million of future benefits to customers (for which it accrued a regulatory liability) and did not recover from customers $126 million of costs for gas emergency response activities that it had previously incurred and expensed. Lawsuits are pending against CECONY seeking generally unspecified damages and, in some cases, punitive damages, for wrongful death, personal injury, property damage and business interruption. CECONY notified its insurers of the incident and believes that the policies in force at the time of the incident will cover CECONY’s costs, in excess of a required retention (the amount of which is not material), to satisfy any liability it may have for damages in connection with the incident. During 2020, CECONY accrued its estimated liability for the suits of $40 25 million, with an insurance receivable in the same amount, due to the settlement or dismissal of multiple litigations that arose from the incident.
Other Contingencies
For additional contingencies, see "Other Regulatory Matters" in Note B, Note G and “Uncertain Tax Positions” in Note J.
Guarantees
Con Edison has entered into various agreements providing financial or performance assurance primarily to third parties on behalf of their subsidiaries. Maximum amounts guaranteed by Con Edison under these agreements totaled $59 million and $60 million at March 31, 2026 and December 31, 2025, respectively.
A summary, by type and term, of Con Edison's total guarantees under these agreements at March 31, 2026 is as follows:
| Guarantee Type | 0 – 3 years | Total | ||||||
| (Millions of Dollars) | ||||||||
| Con Edison Transmission | $ | $ | ||||||
| Total | $ | $ | ||||||
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Note I – Leases
Operating lease cost and cash paid for amounts included in the measurement of lease liabilities for the three months ended March 31, 2026 and 2025 were as follows:
| For the Three Months Ended March 31, | ||||||||||||||
| Con Edison (a) | CECONY | |||||||||||||
| (Millions of Dollars) | 2026 | 2025 | 2026 | 2025 | ||||||||||
| Operating lease cost | $ | $ | $ | $ | ||||||||||
| Operating lease cash flows | $ | $ | $ | $ | ||||||||||
As of March 31, 2026, CECONY has lease agreements for clean energy facilities that have not yet commenced operation, for which the total present value is $444 million. These clean energy facility leases have lease terms of 15 years and are expected to commence operation within three years.
Right-of-use assets obtained in exchange for operating lease obligations for Con Edison and CECONY were immaterial for the three months ended March 31, 2026. Additionally, there were no material lease terminations for the three months ended March 31, 2026. For the three months ended March 31, 2025, right-of-use assets obtained in exchange for operating lease obligations for Con Edison and CECONY were $8 no material lease terminations for the three months ended March 31, 2025.
Note J – Income Tax
Con Edison’s income tax expense was $303 million and $242 million for the three months ended March 31, 2026 and 2025, respectively.
CECONY’s income tax expense was $231 million and $227 million for the three months ended March 31, 2026 and 2025, respectively.
Reconciliation of the difference between income tax expense and the amount computed by applying the prevailing statutory income tax rate to income before income taxes for the three months ended March 31, 2026 and 2025 is as follows:
| For the Three Months Ended March 31, | ||||||||||||||||||||||||||
| Con Edison | CECONY | |||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| (Millions of Dollars) (% of Pre-tax income) | $ | % | $ | % | $ | % | $ | % | ||||||||||||||||||
| U.S. Federal Statutory Tax Rate (a) | $ | % | $ | % | $ | % | $ | % | ||||||||||||||||||
| State Income Taxes: | ||||||||||||||||||||||||||
| State income taxes, net of federal income taxes (b) | ||||||||||||||||||||||||||
| MTA Surcredit amortization, net of federal income taxes | ( | ( | ( | ( | ( | ( | ( | ( | ||||||||||||||||||
| Tax Credits | ( | ( | ( | ( | ( | ( | ( | ( | ||||||||||||||||||
| Nontaxable or Nondeductible items | ( | ( | ( | ( | ( | |||||||||||||||||||||
| Changes in unrecognized tax benefits | ||||||||||||||||||||||||||
| Other Adjustments: | ||||||||||||||||||||||||||
| Amortization of excess deferred federal income taxes | ( | ( | ( | ( | ( | ( | ( | ( | ||||||||||||||||||
| Allowance for uncollectible accounts, net of regulatory recovery | ( | ( | ( | ( | ( | ( | ( | ( | ||||||||||||||||||
| Cost of removal | ||||||||||||||||||||||||||
| Other | ( | ( | ||||||||||||||||||||||||
| Effective tax rate | $ | % | $ | % | $ | % | $ | % | ||||||||||||||||||
(a) Income before income tax expense is attributable to domestic operations.
(b) State income taxes in New York account for the majority of the tax effect in this category.
One Big Beautiful Bill Act
On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was signed into law, containing a broad range of tax reform provisions, including extending and modifying certain key provisions of the federal Tax Cuts and Jobs Act of 2017, as enacted on December 22, 2017 and expanding certain incentives under the federal Inflation Reduction Act, as enacted on August 16, 2022 (IRA) while accelerating the phase-out of solar and wind credits. The Companies have assessed the potential impacts of the OBBBA and any such assessments may be impacted by future guidance to
29
be issued by the Department of Treasury. However, based on management’s assessment, the provisions in the OBBBA are not expected to have a material impact on the Companies’ financial position, results of operations or liquidity.
Corporate Alternative Minimum Tax
On August 16, 2022, the 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. 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 liability exceeds the CAMT liability.
Beginning in 2024, based on the existing statute, the Companies are subject to and report the CAMT in their Consolidated Income Statements, Consolidated Statements of Cash Flows and the Consolidated Balance Sheets. At March 31, 2026, Con Edison accrued a CAMT liability of $53 million ($45 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. The deferred tax asset related to the minimum tax credit carryforward will be realized to the extent the Companies’ consolidated deferred tax liabilities exceed the minimum tax credit carryforward. The Companies’ deferred tax liabilities are expected to exceed the minimum tax credit carryforward for the foreseeable future and thus no valuation allowance is required. 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.
On February 18, 2026, the IRS and the Department of Treasury issued Notice 2026-7, which provides additional interim guidance regarding the application of the CAMT and allows the Companies to deduct certain repair expenditures as a reduction to the Companies’ modified GAAP net income. This interim guidance is retroactive to the beginning of the IRA provisions in calculating the Companies’ CAMT liability. In the three months ended March 31, 2026, Con Edison reduced its CAMT credit carryforward by $205 million ($213 million of which is for CECONY) and increased its general business tax credit carryforward by approximately $154
Uncertain Tax Positions
Under the accounting rules for income taxes, the Companies are not permitted to recognize the tax benefit attributable to a tax position unless such position is more likely than not to be sustained upon examination by taxing authorities, including resolution of any related appeals and litigation processes, based solely on the technical merits of the position.
At March 31, 2026, the estimated uncertain tax positions for Con Edison were $10 million ($5 million of which is for CECONY). For the three months ended March 31, 2026, Con Edison recognized $0.4 million of income tax expense related to current year positions ($0.4 million of which is for CECONY). The total amount of unrecognized tax benefits, if recognized, that would reduce Con Edison’s effective tax rate is $10 million ($9 million, net of federal taxes) with $5 million attributable to CECONY.
Note K – Revenue Recognition
The following table presents, for the three months ended March 31, 2026 and 2025, revenue from contracts with customers as defined in ASC Topic 606, "Revenue from Contracts with Customers," as well as additional revenue from sources other than contracts with customers, disaggregated by major source.
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| For the Three Months Ended March 31, 2026 | For the Three Months Ended March 31, 2025 | |||||||||||||||||||||||||
| (Millions of Dollars) | Revenues from contracts with customers | Other revenues (a) | Total operating revenues | Revenues from contracts with customers | Other revenues (a) | Total operating revenues | ||||||||||||||||||||
| CECONY | ||||||||||||||||||||||||||
| Electric | $ | $( | $ | $ | $( | $ | ||||||||||||||||||||
| Gas | ||||||||||||||||||||||||||
| Steam | ( | ( | ||||||||||||||||||||||||
| Total CECONY | $ | $( | $ | $ | $( | $ | ||||||||||||||||||||
| O&R | ||||||||||||||||||||||||||
| Electric | $ | $( | $ | $ | $( | $ | ||||||||||||||||||||
| Gas | ( | ( | ||||||||||||||||||||||||
| Total O&R | $ | $( | $ | $ | $( | $ | ||||||||||||||||||||
| Con Edison Transmission | ||||||||||||||||||||||||||
| Other (b) | ( | ( | ||||||||||||||||||||||||
| Total Con Edison | $ | $( | $ | $ | $( | $ | ||||||||||||||||||||
(a) For the Utilities, this includes primarily revenue from alternative revenue programs, such as the revenue decoupling mechanisms under their New York electric and gas rate plans, and negative revenue adjustments.
Note L – Current Expected Credit Losses
Allowance for Uncollectible Accounts
The Utilities’ “Account receivable – customers” balance consists of utility bills due (bills are generally due the month following billing) from customers who have energy delivered, generated, or services provided by the Utilities. The balance also reflects the Utilities’ purchase of receivables from energy service companies to support the retail choice programs.
The “Other receivables” balance generally reflects costs billed by the Utilities for goods and services provided to external parties, such as accommodation work for private parties and certain governmental entities, real estate rental and pole attachments.
The Companies develop expected loss estimates using past events data and consider current conditions and future reasonable and supportable forecasts. Changes to the Utilities’ reserve balances that result in write-offs of customer accounts receivable balances above existing rate allowances are not reflected in rates during the term of the current rate plans. For the Utilities’ allowance for uncollectible accounts for customer accounts receivable, which includes 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, reconnection 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. The change to the allowance for customer uncollectible accounts for the three months ended March 31, 2026 for Con Edison and CECONY was $(39 ) million and $(40 ) million, respectively. The change to the allowance for customer uncollectible accounts for Con Edison and CECONY were $(4 ) million and no change, respectively, for the three months ended March 31, 2025. Generally, the Utilities write off customer accounts receivable as uncollectible 90 days after the account is disconnected for non-payment, or the account is closed during the collection process.
Other receivables allowance for uncollectible accounts is calculated based on a historical average of collections relative to total other receivables, including current receivables. Current macro- and micro-economic conditions are also considered when calculating the current reserve. Probable outcomes of pending litigation, whether favorable or unfavorable to the Companies, are also included in the consideration.
Customer accounts receivable and the associated allowance for uncollectible accounts are included in the line “Accounts receivable – customers” on the Companies’ consolidated balance sheets. Other receivables and the associated allowance for uncollectible accounts are included in “Other receivables” on the Companies’ consolidated balance sheets.
The table below presents a rollforward by major portfolio segment type for the three months ended March 31, 2026 and 2025:
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| For the Three Months Ended March 31, | ||||||||||||||||||||||||||
| Con Edison | CECONY | |||||||||||||||||||||||||
| Accounts receivable - customers | Other receivables | Accounts receivable - customers | Other receivables | |||||||||||||||||||||||
| (Millions of Dollars) | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||
| Allowance for credit losses | ||||||||||||||||||||||||||
| Beginning Balance at January 1, | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
| Recoveries | ||||||||||||||||||||||||||
| Write-offs | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||
| Reserve adjustments | ( | ( | ( | ( | ||||||||||||||||||||||
| Ending Balance March 31, | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
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Note M – Financial Information by Business Segment
Con Edison’s principal business segments are CECONY’s regulated utility activities, O&R’s regulated utility activities and Con Edison Transmission. CECONY’s principal business segments are its regulated electric, gas and steam utility activities. The financial data for the business segments as of and for the three months ended March 31, 2026 and 2025 were as follows:
| As of and for the Three Months Ended March 31, 2026 | ||||||||||||||||||||||||||||||||||||||
| Operating revenues | Inter-segment revenues | Other operations and maintenance (b) | Depreciation and amortization | Other operating expense (b) | Operating income (loss) | Other Income (deductions) | Interest Expense | Allowance for borrowed funds used during construction | Income Tax Expense | Total assets | Capital expenditures | |||||||||||||||||||||||||||
| (Millions of Dollars) | ||||||||||||||||||||||||||||||||||||||
| CECONY | ||||||||||||||||||||||||||||||||||||||
| Electric | $ | $ | $ | $ | $ | $ | $ | $ | $( | $ | $ | $ | ||||||||||||||||||||||||||
| Gas | ( | |||||||||||||||||||||||||||||||||||||
| Steam | ||||||||||||||||||||||||||||||||||||||
| Consolidation adjustments | — | ( | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
| Total CECONY | $ | $ | $ | $ | $ | $ | $ | $ | $( | $ | $ | $ | ||||||||||||||||||||||||||
| O&R | ||||||||||||||||||||||||||||||||||||||
| Electric | — | ( | ||||||||||||||||||||||||||||||||||||
| Gas | — | |||||||||||||||||||||||||||||||||||||
| Total O&R | $ | $— | $ | $ | $ | $ | $ | $ | $( | $ | $ | $ | ||||||||||||||||||||||||||
| Con Edison Transmission | — | ( | — | |||||||||||||||||||||||||||||||||||
| Other (a) | ( | — | ( | ( | ||||||||||||||||||||||||||||||||||
| Total Con Edison | $ | $— | $ | $ | $ | $ | $ | $ | $( | $ | $ | $ | ||||||||||||||||||||||||||
(a) Other includes the parent company, Con Edison’s tax equity investments and consolidation adjustments.
(b) Other operations and maintenance expenses constitute significant segment expenses which are regularly provided to the chief operating decision makers. Other operating expense includes other segment items (purchased power, fuel, gas purchased for resale, taxes other than income taxes).
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| As of and for the Three Months Ended March 31, 2025 | ||||||||||||||||||||||||||||||||||||||
| Operating revenues | Inter-segment revenues | Other operations and maintenance (b) | Depreciation and amortization | Other operating expense (b) | Operating income (loss) | Other Income (deductions) | Interest Expense | Allowance for borrowed funds used during construction | Income Tax Expense | Total assets | Capital expenditures | |||||||||||||||||||||||||||
| (Millions of Dollars) | ||||||||||||||||||||||||||||||||||||||
| CECONY | ||||||||||||||||||||||||||||||||||||||
| Electric | $ | $ | $ | $ | $ | $ | $ | $ | $( | $ | $ | $ | ||||||||||||||||||||||||||
| Gas | ( | |||||||||||||||||||||||||||||||||||||
| Steam | ( | |||||||||||||||||||||||||||||||||||||
| Consolidation adjustments | — | ( | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
| Total CECONY | $ | $ | $ | $ | $ | $ | $ | $ | $( | $ | $ | $ | ||||||||||||||||||||||||||
| O&R | ||||||||||||||||||||||||||||||||||||||
| Electric | — | ( | ||||||||||||||||||||||||||||||||||||
| Gas | — | |||||||||||||||||||||||||||||||||||||
| Total O&R | $ | $— | $ | $ | $ | $ | $ | $ | $( | $ | $ | $ | ||||||||||||||||||||||||||
| Con Edison Transmission | — | ( | — | |||||||||||||||||||||||||||||||||||
| Other (a) | — | ( | ( | — | ( | |||||||||||||||||||||||||||||||||
| Total Con Edison | $ | $— | $ | $ | $ | $ | $ | $ | $( | $ | $ | $ | ||||||||||||||||||||||||||
(a) Other includes the parent company, Con Edison’s tax equity investments, consolidation adjustments and Broken Bow II, the deferred project that was classified as held for sale at December 31, 2024, with the sale and transfer completed in January 2025. See Note Q.
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Note N – Derivative Instruments and Hedging Activities
Con Edison’s subsidiaries hedge market price fluctuations associated with physical purchases and sales of electricity, natural gas, steam and, to a lesser extent, refined fuels by using derivative instruments including futures, forwards, basis swaps, options, transmission congestion contracts and financial transmission rights contracts. These are economic hedges, for which the Utilities do not elect hedge accounting. The Companies use economic hedges to manage commodity price risk in accordance with provisions set by state regulators. The volume of hedging activity at the Utilities depends upon the forecasted volume of physical commodity supply to meet customer needs, and program costs or benefits are recovered from or credited to full-service customers, respectively. Derivatives are recognized on the consolidated balance sheet at fair value (see Note O), unless an exception is available under the accounting rules for derivatives and hedging. Qualifying derivative contracts that have been designated as normal purchases or normal sales contracts are not reported at fair value under the accounting rules.
The fair values of the Companies’ derivatives, including the offsetting of assets and liabilities on the consolidated balance sheets at March 31, 2026 and December 31, 2025 were:
| (Millions of Dollars) | 2026 | 2025 | ||||||||||||||||||||||||
| Balance Sheet Location | Gross Amounts of Recognized Assets (Liabilities) | Gross Amounts Offset | Net Amounts of Assets (Liabilities) (a) | Gross Amounts of Recognized Assets (Liabilities) | Gross Amounts Offset | Net Amounts of Assets (Liabilities) (a) | ||||||||||||||||||||
| Con Edison | ||||||||||||||||||||||||||
| Fair value of derivative assets | ||||||||||||||||||||||||||
| Current | $ | $( | $ | (b) | $ | $( | $ | (b) | ||||||||||||||||||
| Noncurrent | ( | ( | ||||||||||||||||||||||||
| Total fair value of derivative assets | $ | $( | $ | $ | $( | $ | ||||||||||||||||||||
| Fair value of derivative liabilities | ||||||||||||||||||||||||||
| Current | $( | $ | $( | (b) | $( | $ | $( | (b) | ||||||||||||||||||
| Noncurrent | ( | ( | ( | ( | ||||||||||||||||||||||
| Total fair value of derivative liabilities | $( | $ | $( | $( | $ | $( | ||||||||||||||||||||
| Net fair value derivative assets (liabilities) | $ | $( | $ | $ | $( | $ | ||||||||||||||||||||
| CECONY | ||||||||||||||||||||||||||
| Fair value of derivative assets | ||||||||||||||||||||||||||
| Current | $ | $( | $ | (b) | $ | $( | $ | (b) | ||||||||||||||||||
| Noncurrent | ( | ( | ||||||||||||||||||||||||
| Total fair value of derivative assets | $ | $( | $ | $ | $( | $ | ||||||||||||||||||||
| Fair value of derivative liabilities | ||||||||||||||||||||||||||
| Current | $( | $ | $( | (b) | $( | $ | $( | (b) | ||||||||||||||||||
| Noncurrent | ( | ( | ( | ( | ||||||||||||||||||||||
| Total fair value of derivative liabilities | $( | $ | $( | $( | $ | $( | ||||||||||||||||||||
| Net fair value derivative assets (liabilities) | $ | $( | $ | $ | $( | $ | ||||||||||||||||||||
(a)Derivative instruments and collateral were offset on the consolidated balance sheet as applicable under the accounting rules. The Companies enter into master agreements for their commodity derivatives. These agreements typically provide offset in the event of contract termination. In such cases, generally the non-defaulting party’s payable will be offset by the defaulting party’s payable. The non-defaulting party will customarily notify the defaulting party within a specific time period and come to an agreement on the early termination amount.
(b)At March 31, 2026, collateral and margin deposits for Con Edison and CECONY were classified as derivative assets of $1 1 ) million and an immaterial amount, respectively. At December 31, 2025, collateral and margin deposits for Con Edison and CECONY were classified as derivative assets of $1 million and an immaterial amount, respectively, and as derivative liabilities of $(16 ) million and $(14 ) million, respectively. These amounts are presented on the consolidated balance sheets, but not included in the table. Margin is collateral, typically cash, that the holder of a derivative instrument is required to deposit in order to transact on an exchange and to cover its potential losses with its broker or the exchange.
The Utilities generally recover their prudently incurred fuel, purchased power and gas costs, including hedging gains and losses, in accordance with rate provisions approved by the applicable state utility regulators. In accordance with the accounting rules for regulated operations, the Utilities record a regulatory asset or regulatory liability to defer recognition of unrealized gains and losses on their electric and gas derivatives. As gains and losses are realized in future periods, they will be recognized as purchased power, gas and fuel costs in the Companies’ consolidated income statements.
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The following table presents the realized and unrealized gains or losses on derivatives that have been deferred or recognized in earnings for the three months ended March 31, 2026 and 2025:
| For the Three Months Ended March 31, | ||||||||||||||||||||
| Con Edison | CECONY | |||||||||||||||||||
| (Millions of Dollars) | Financial Statement Location (a) | 2026 | 2025 | 2026 | 2025 | |||||||||||||||
Pre-tax gains (losses) deferred in accordance with accounting rules for regulated operations: | ||||||||||||||||||||
| Current | Regulatory liabilities | $ | $ | $ | $ | |||||||||||||||
| Noncurrent | Regulatory liabilities | ( | ( | |||||||||||||||||
| Total deferred gains (losses) | $ | $ | $ | $ | ||||||||||||||||
| Current | Regulatory assets | $ | $( | $ | $( | |||||||||||||||
| Current | Recoverable energy costs | |||||||||||||||||||
| Noncurrent | Regulatory assets | ( | ( | ( | ( | |||||||||||||||
| Total deferred gains (losses) | $ | $( | $ | $( | ||||||||||||||||
| Net deferred gains (losses) (b) | $ | $ | $ | $ | ||||||||||||||||
(a)For the three months ended March 31, 2026, pre-tax gains recognized in "Other operations and maintenance" expense on the Companies' consolidated income statements for Con Edison and CECONY include $3
(b)Unrealized net deferred gains on electric and gas derivatives for the Utilities increased as a result of higher electric and gas commodity prices during the three months ended March 31, 2026. Upon settlement, short-term deferred derivative losses generally increase the recoverable costs of electric and gas purchases.
The following table presents the hedged volume of Con Edison’s and CECONY’s commodity derivative transactions at March 31, 2026:
| Electric Energy (MWh) (a)(b) | Capacity (MW-mos) (a) | Natural Gas (Dt) (a)(b) | Refined Fuels (gallons) | |||||||||||
| Con Edison | ||||||||||||||
| CECONY | ||||||||||||||
(a)Volumes are reported net of long and short positions, except natural gas collars where the volumes of long positions are reported.
(b)Excludes electric congestion and gas basis swap contracts which are associated with electric and gas contracts and hedged volumes.
The Companies are exposed to credit risk related to transactions entered into primarily for the various energy supply and hedging activities by the Utilities. Credit risk relates to the loss that may result from a counterparty’s nonperformance. The Companies use credit policies to manage this risk, including an established credit approval process, monitoring of counterparty limits, netting provisions within agreements, collateral or prepayment arrangements, credit insurance and credit default swaps. The Companies measure credit risk exposure as the replacement cost for open energy commodity and derivative positions plus amounts owed from counterparties for settled transactions. The replacement cost of open positions represents unrealized gains, net of any unrealized losses where the Companies have a legally enforceable right to offset.
At March 31, 2026, Con Edison and CECONY had $75 million and $69 million of credit exposure, respectively, in connection with open energy supply net receivables and hedging activities, net of collateral. Con Edison’s net credit exposure consisted of $56 million with investment-grade counterparties, $17 million with commodity exchange brokers, and $2 million with non-investment grade/non-rated counterparties. CECONY’s net credit exposure consisted of $51 million with investment-grade counterparties, $16 million with commodity exchange brokers, and $2 million with non-investment grade/non-rated counterparties.
The collateral requirements associated with, and settlement of, derivative transactions are included in net cash flows from operating activities in the Companies’ consolidated statements of cash flows. Most derivative instrument contracts contain provisions that may require a party to provide collateral on its derivative instruments that are in a net liability position. The amount of collateral to be provided will depend on the fair value of the derivative instruments and the party’s credit ratings.
The following table presents the aggregate fair value of the Companies’ derivative instruments with credit-risk-related contingent features that are in a net liability position, the collateral posted including cash and letters of credit for such positions and the additional cash collateral that would have been required to be posted had the lowest applicable credit rating been reduced one level and to below investment grade at March 31, 2026:
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| (Millions of Dollars) | Con Edison (a) | CECONY (a) | ||||||||||||
| Aggregate fair value – net liabilities | $ | $ | ||||||||||||
| Collateral posted | ||||||||||||||
| Additional collateral (b) (downgrade one level from current ratings) | ||||||||||||||
| Additional collateral (b)(c) (downgrade to below investment grade from current ratings) | ||||||||||||||
(a)Non-derivative transactions for the purchase and sale of electricity and gas and qualifying derivative instruments, that have been designated as normal purchases or normal sales, are excluded from the table. These transactions primarily include purchases of electricity from independent system operators. In the event the Utilities are no longer extended unsecured credit for such purchases, the Companies would be required to post additional cash collateral of $2 million at March 31, 2026. For certain other such non-derivative transactions, the Companies could be required to post collateral under certain circumstances, including in the event counterparties had reasonable grounds for insecurity.
(b)The Companies measure the collateral requirements by taking into consideration the fair value amounts of derivative instruments that contain credit-risk-related contingent features that are in a net liability position plus amounts owed to counterparties for settled transactions and amounts required by counterparties for minimum financial security. The fair value amounts represent unrealized losses, net of any unrealized gains where the Companies have a legally enforceable right to offset.
(c)Derivative instruments that are net assets have been excluded from the table. At March 31, 2026, if Con Edison had been downgraded to below investment grade, it would have been required to post additional cash collateral for such derivative instruments of $50 million.
Note O – Fair Value Measurements
The accounting rules for fair value measurements and disclosures define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in a principal or most advantageous market. Fair value is a market-based measurement that is determined based on inputs, that refer broadly to assumptions that market participants use in pricing assets or liabilities. These inputs can be readily observable, market corroborated, or generally unobservable firm inputs. The Companies often make certain assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, and the risks inherent in the inputs to valuation techniques. The Companies use valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs.
The accounting rules for fair value measurements and disclosures established a fair value hierarchy, that prioritizes the inputs to valuation techniques used to measure fair value in three broad levels. The rules require that assets and liabilities be classified in their entirety based on the level of input that is significant to the fair value measurement. Assessing the significance of a particular input may require judgment considering factors specific to the asset or liability and may affect the valuation of the asset or liability and their placement within the fair value hierarchy. The Companies classify fair value balances based on the fair value hierarchy defined by the accounting rules for fair value measurements and disclosures as follows:
•Level 1 – Consists of assets or liabilities whose value is based on unadjusted quoted prices in active markets at the measurement date. An active market is one in which transactions for assets or liabilities occur with sufficient frequency and volume to provide pricing information on an ongoing basis. This category includes contracts traded on active exchange markets valued using unadjusted prices quoted directly from the exchange.
•Level 2 – Consists of assets or liabilities valued using industry standard models and based on prices, other than quoted prices within Level 1, that are either directly or indirectly observable as of the measurement date. The industry standard models consider observable assumptions including time value, volatility factors and current market and contractual prices for the underlying commodities, in addition to other economic measures. This category includes contracts traded on active exchanges or in over-the-counter markets priced with industry standard models.
•Level 3 – Consists of assets or liabilities whose fair value is estimated based on internally developed models or methodologies using inputs that are generally less readily observable and supported by little, if any, market activity at the measurement date. Unobservable inputs are developed based on the best available information and subject to cost benefit constraints. This category includes contracts priced using models that are internally developed and contracts placed in illiquid markets. It also includes contracts that expire after the period of time for which quoted prices are available and internal models are used to determine a significant portion of the value.
Assets and liabilities measured at fair value on a recurring basis as of March 31, 2026 and December 31, 2025 are summarized below.
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| 2026 | 2025 | |||||||||||||||||||||||||||||||
| (Millions of Dollars) | Level 1 | Level 2 | Level 3 | Netting Adjustment (d) | Total | Level 1 | Level 2 | Level 3 | Netting Adjustment (d) | Total | ||||||||||||||||||||||
| Con Edison | ||||||||||||||||||||||||||||||||
| Derivative assets: | ||||||||||||||||||||||||||||||||
| Commodity (a)(b)(c) | $ | $ | $ | $( | $ | $ | $ | $ | $( | $ | ||||||||||||||||||||||
| Mutual Funds (a)(b) | — | — | — | — | — | — | ||||||||||||||||||||||||||
| Cash Value of Life Insurance Policies (a)(b) | — | — | — | — | — | — | ||||||||||||||||||||||||||
| Total assets | $ | $ | $ | $( | $ | $ | $ | $ | $( | $ | ||||||||||||||||||||||
| Derivative liabilities: | ||||||||||||||||||||||||||||||||
| Commodity (a)(b)(c) | $ | $ | $ | $( | $ | $ | $ | $( | $ | |||||||||||||||||||||||
| CECONY | ||||||||||||||||||||||||||||||||
| Derivative assets: | ||||||||||||||||||||||||||||||||
| Commodity (a)(b)(c) | $ | $ | $ | $( | $ | $ | $ | $ | $( | $ | ||||||||||||||||||||||
| Mutual Funds (a)(b) | — | — | — | — | — | — | ||||||||||||||||||||||||||
| Cash Value of Life Insurance Policies (a)(b)(d) | — | — | — | — | — | — | ||||||||||||||||||||||||||
| Total assets | $ | $ | $ | $( | $ | $ | $ | $ | $( | $ | ||||||||||||||||||||||
| Derivative liabilities: | ||||||||||||||||||||||||||||||||
| Commodity (a)(b)(c) | $ | $ | $ | $( | $ | $ | $ | $ | $( | $ | ||||||||||||||||||||||
(a)The Companies’ policy is to review the fair value hierarchy and recognize transfers into and transfers out of the levels at the end of each reporting period. Transfers out of Level 3 represent assets and liabilities that were previously classified as Level 3 for which the inputs became observable for classification in Level 2. The inputs are now observable because of availability of observable market data due to the decrease in the terms of certain contracts from beyond three years to less than three years.
(b)Level 2 assets and liabilities include investments held in the deferred compensation plan and/or non-qualified retirement plans, exchange-traded contracts where there is insufficient market liquidity to warrant inclusion in Level 1, and certain over-the-counter derivative instruments for electricity, refined products and natural gas. Derivative instruments classified as Level 2 are valued using industry standard models that incorporate corroborated observable inputs, such as pricing services or prices from similar instruments that trade in liquid markets, time value and volatility factors.
(c)The accounting rules for fair value measurements and disclosures require consideration of the impact of nonperformance risk (including credit risk) from a market participant perspective in the measurement of the fair value of assets and liabilities. At March 31, 2026 and December 31, 2025, the Companies determined that nonperformance risk would have no material impact on their financial position or results of operations.
The employees in the Companies’ risk management group develop and maintain the Companies’ valuation policies and procedures for, and verify pricing and fair value valuation of, commodity derivatives. Under the Companies’ policies and procedures, multiple independent sources of information are obtained for forward price curves used to value commodity derivatives. Fair value and changes in fair value of commodity derivatives are reported monthly to the Companies’ risk committees, comprised of officers and employees of the Companies that oversee energy hedging at the Utilities. The risk management group reports to the Companies’ Vice President and Treasurer.
| Fair Value of Level 3 at March 31, 2026 | Valuation Techniques | Unobservable Inputs | Range | Average Market Price | |||||||||||||
| (Millions of Dollars) | |||||||||||||||||
| Con Edison – Commodity | |||||||||||||||||
| Electricity | $ | Discounted Cash Flow | Forward capacity prices ($/kW-month) (a) | $ | $ | ||||||||||||
| Transmission Congestion Contracts | Discounted Cash Flow | Inter-zonal forward price curves adjusted for historical zonal losses ($/MWh) (b) | $( | $ | |||||||||||||
| Total Con Edison—Commodity | $ | ||||||||||||||||
| CECONY – Commodity | |||||||||||||||||
| Electricity | $ | Discounted Cash Flow | Forward capacity prices ($/kW-month) (a) | $ | $ | ||||||||||||
| Transmission Congestion Contracts | Discounted Cash Flow | Inter-zonal forward price curves adjusted for historical zonal losses ($/MWh) (b) | $( | $ | |||||||||||||
| Total CECONY—Commodity | $ | ||||||||||||||||
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(a)Generally, increases (decreases) in this input in isolation would result in a higher (lower) fair value measurement.
(b)Generally, increases (decreases) in this input in isolation would result in a lower (higher) fair value measurement.
The table listed below provides a reconciliation of the beginning and ending net balances for assets and liabilities measured at fair value as of March 31, 2026 and 2025 and classified as Level 3 in the fair value hierarchy:
| For the Three Months Ended March 31, | ||||||||||||||
| Con Edison | CECONY | |||||||||||||
| (Millions of Dollars) | 2026 | 2025 | 2026 | 2025 | ||||||||||
| Beginning balance as of January 1, | $( | $( | $( | $( | ||||||||||
| Included in earnings | ( | ( | ( | |||||||||||
| Included in regulatory assets and liabilities | ||||||||||||||
| Settlements | ||||||||||||||
| Transfer out of level 3 | ( | ( | ||||||||||||
| Ending balance as of March 31, | $ | $( | $ | $( | ||||||||||
Realized gains and losses on the Utilities' Level 3 commodity derivative assets and liabilities are reported as part of purchased power, gas and fuel costs. The Utilities generally recover these costs in accordance with rate provisions approved by the applicable state public utilities regulators. See Note A. Unrealized gains and losses for commodity derivatives are generally deferred on the Companies' consolidated balance sheets in accordance with the accounting rules for regulated operations.
Note P – Related Party Transactions
The NYSPSC generally requires that the Utilities and Con Edison’s other subsidiaries be operated as separate entities. The Utilities and the other subsidiaries are required to have separate operating employees and operating officers of the Utilities may not be operating officers of the other subsidiaries. The Utilities may provide administrative and other services to, and receive such services from, Con Edison and its other subsidiaries only pursuant to cost allocation procedures approved by the NYSPSC. Transfers of assets between the Utilities and Con Edison or its other subsidiaries may be made only as approved by the NYSPSC. The debt of the Utilities is to be raised directly by the Utilities and not derived from Con Edison. Without the prior permission of the NYSPSC, the Utilities may not make loans to, guarantee the obligations of, or pledge assets as security for the indebtedness of Con Edison or its other subsidiaries. The NYSPSC limits the dividends that the Utilities may pay Con Edison. As a result, substantially all of the net assets of CECONY and O&R ($23,444 million and $1,449 million, respectively), at March 31, 2026, are considered restricted net assets. The NYSPSC may impose additional measures to separate, or “ring fence,” the Utilities from Con Edison and its other subsidiaries.
The costs of administrative and other services provided by CECONY to, and received by it from, Con Edison and its other subsidiaries for the three months ended March 31, 2026 and 2025 were as follows:
| For the Three Months Ended March 31, | ||||||||
CECONY | ||||||||
| (Millions of Dollars) | 2026 | 2025 | ||||||
| Cost of services provided | $ | $ | ||||||
| Cost of services received | $ | $ | ||||||
In addition, CECONY and O&R have joint gas supply arrangements pursuant to which CECONY sold to, or acted as agent to purchase for, O&R, $61 million and $44 million of natural gas for the three months ended March 31, 2026 and 2025, respectively. These amounts are net of the effect of related hedging transactions.
At March 31, 2026 and December 31, 2025, CECONY's net receivable from Con Edison for income taxes were $179 and $24 million, respectively.
The Utilities perform work and incur expenses on behalf of New York Transco, a company in which Con Edison Transmission owns an interest. The Utilities bill New York Transco for such work and expenses in accordance with established policies. For the three months ended March 31, 2026 and 2025, the amounts billed by the Utilities to New York Transco were immaterial
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The FERC has authorized CECONY to lend funds to O&R for a period of not more than 12 months, in an amount not to exceed $250 million, at prevailing market rates. At March 31, 2026 and December 31, 2025, there were no
Note Q – Dispositions
Con Edison's sale of all of the stock of the Clean Energy Businesses on March 1, 2023 included all assets, operations and projects of the Clean Energy Businesses with the exception of one deferred project, Broken Bow II, a 75 MW nameplate capacity wind power project located in Nebraska, a tax equity interest in the Crane solar project and a tax equity interest in two renewable electric projects located in Virginia (Virginia Tax Equity Interest).
In January 2025, Con Edison completed the sale and transfer of Broken Bow II to RWE and the corresponding value of $54 million (net of assumed debt and other final adjustments) was paid to Con Edison. RWE Renewables Americas, LLC operated the facility on behalf of Con Edison until the sale and transfer to RWE pursuant to certain service agreements, for which the fees were not material.
In October 2025, Con Edison sold its tax equity interest in the Crane solar project to another member after holding it for a five-year period.
Con Edison continues to retain the Virginia Tax Equity Interest, which produced renewable energy tax credits that can be used to reduce Con Edison’s federal income tax. These tax credits are subject to recapture, in whole or in part, if the assets are sold within a five-year period beginning on the date on which the assets are placed in service. Con Edison will continue to employ HLBV accounting for the Virginia Tax Equity Interest. The carrying value of the Virginia Tax Equity Interest was $5
During the first quarter of 2026, Con Edison Transmission completed the sale of its approximately 6.6 percent equity interest in MVP to the two founding members of MVP for total aggregate consideration of $357.5 million, before certain closing adjustments and expenses. Con Edison's gain on the sale of the MVP interest was $189 million ($134 million, after tax) as of March 31, 2026.
In April 2026, CECONY and Con Edison Transmission entered into an agreement to sell their interests in Honeoye for $5 million in aggregate, of which approximately $1.5 million was attributed to CECONY, before certain closing adjustments and expenses. The closing is expected to occur following approval by the NYSPSC.
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Item 2: 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 (the First Quarter Financial Statements) included in this report of two separate registrants: Consolidated Edison, Inc. (Con Edison) and Consolidated Edison Company of New York, Inc. (CECONY). 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 MD&A about CECONY applies to Con Edison.
This MD&A should be read in conjunction with the First Quarter Financial Statements and the notes thereto and the MD&A in Item 7 of the Companies’ combined Annual Report on Form 10-K for the year ended December 31, 2025 (File Nos.1-14514 and 1-01217, the Form 10-K).
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.
Con Edison, incorporated in New York State in 1997, is a holding company that owns all of the outstanding common stock of CECONY, Orange and Rockland Utilities, Inc. (O&R) and Con Edison Transmission, Inc. (together with its subsidiaries, “Con Edison Transmission”). As used in this report, the term the “Utilities” refers to CECONY and O&R.
| Con Edison | |||||||||||||||||||||||||||||||||||
| CECONY | O&R | Con Edison Transmission | |||||||||||||||||||||||||||||||||
•RECO | |||||||||||||||||||||||||||||||||||
Con Edison’s principal business operations are those of the Utilities and Con Edison Transmission. CECONY’s principal business operations are its regulated electric, gas and steam delivery businesses. O&R’s principal business operations are its regulated electric and gas delivery businesses. Con Edison Transmission, a regulated company primarily under the oversight of the Federal Energy Regulatory Commission (FERC), develops and invests in electric transmission projects and owns interests in both electric and gas assets. During the first quarter of 2026, Con Edison Transmission completed the sale of its approximately 6.6 percent equity interest in Mountain Valley Pipeline, LLC (MVP). In April 2026, CECONY and Con Edison Transmission entered into an agreement to sell their interests in Honeoye Storage Corporation (Honeoye) for $5 million in aggregate, of which approximately $1.5 million was attributed to CECONY, before certain closing adjustments and expenses. The closing is expected to occur following approval by the NYSPSC. See “Investments” in Note A to the First Quarter Financial Statements and “Con Edison Transmission” below.
Con Edison seeks to provide shareholder value through continued dividend growth, supported by earnings growth in regulated utilities and electric transmission assets. Con Edison invests to provide reliable, resilient, safe and clean energy critical for its New York and New Jersey customers. Con Edison is a responsible neighbor, helping the communities it serves become more sustainable.
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 First Quarter Financial Statements, the Companies’ management considers the following events, trends, and uncertainties to be important to understanding the Companies’ current and future financial condition.
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Aged Accounts Receivable Balances
At March 31, 2026, CECONY’s and O&R’s customer accounts receivables balances of $3,120 million and $162 million, respectively, included aged accounts receivables (balances outstanding in excess of 60 days) of $1,352 million and $28 million, respectively. At December 31, 2025, CECONY’s and O&R’s customer accounts receivables balances of $2,970 million and $120 million, respectively, included aged accounts receivables (balances outstanding in excess of 60 days) of $1,427 million and $27 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 uncollectible expenses and late payment charges (from January 1, 2026 through December 31, 2028 for electric and gas and from January 1, 2020 through October 31, 2026 for steam), pursuant to which CECONY will calculate the annual difference between (i) its actual uncollectible expenses and late payment charges and (ii) the levels of uncollectible expenses and late payment charges provided in rates. In the event the actual net expenses (uncollectible expenses plus late payment charges) are below the amounts in rates, CECONY will defer the full variance as a regulatory liability and refund to customers via surcredit. In the event the actual net expenses are above the amounts in rates, CECONY will defer the full annual variance above $10 million ($8.5 million for electric and $1.5 million for gas) in 2026; above $15 million ($12.75 million for electric and $2.25 million for gas) in 2027; and above $20 million ($17.0 million for electric and $3.0 million for gas) in 2028; as a regulatory asset for recovery via surcharge. Annual surcharge recovery is subject to a 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 future recovery in CECONY’s next base rate cases.
O&R’s rate plans for the three-year period January 2025 through December 2027 include 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 expenses and late payment charges, and the level set forth in rates that is above the threshold. Recovery/refunds will be made via surcharge/surcredit. 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 currently in place, the Utilities’ ability to effectively manage their customer accounts receivable balances and obtain recovery in rates for their respective carrying costs and any related write-offs could have a material impact on the Companies’ businesses. In addition, a continued slow recovery of accounts receivable balances has impacted and is expected to continue to impact the Companies’ liquidity.
The Utilities, in an effort to reduce aged accounts receivables balances, continue to execute on their integrated collections strategy, which includes, among other things, implementation of flexible payment arrangement options, enhanced targeted digital and mail communications to customers regarding collections and an increased presence of field collectors to support in-person account resolution. The Utilities have also strengthened their credit and collection efforts to better manage incoming inquiries and have instituted additional measures to manage outbound collection calls.
Electric Supply
Most of the electricity sold by CECONY to its full-service customers in 2025 was purchased through the wholesale electricity market administered by the NYISO. The company expects that resources will again be adequate to meet the requirements of its customers in 2026. See "Electric Reliability Needs," below. While supply margins are narrow in New York City until the Champlain Hudson Power Express transmission line enters the NYISO’s energy and capacity markets, existing resources are projected to be sufficient to cover the supply requirement. The company plans to meet its continuing obligation to supply electricity to its full-service customers through a combination of electricity purchased under contract, purchased through the NYISO’s wholesale electricity market, or generated from its electricity generating facilities.
Electric Reliability Needs
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CECONY and O&R monitor the adequacy of the electric capacity resources and related developments in their service areas and work with other parties on long-term resource adequacy and transmission security within the framework of the New York Independent System Operator (NYISO) reliability planning process. In April 2026, the NYISO issued its 2026 Quarter 1 Short-Term Assessment of Reliability that, among other things, continued to identify reliability needs in New York City beginning in the summer of 2026 and continuing through 2030. The need is primarily driven by the deactivation notices of certain generation, in combination with forecasted increases in peak demand under expected weather conditions, aging generation and the uncertainty as to whether certain planned projects will be completed and energized within the scheduled time period. The NYISO evaluated both market-based and regulated solutions and determined that certain existing generation resources should remain in service until May 1, 2029 to maintain system reliability. Longer-term reliability is dependent on the timely completion of planned transmission and generation projects and the addition of new resources. CECONY will continue to monitor reliability assessments, regulatory developments and the progress of planned transmission and generation projects.
Energy Affordability
There has been heightened legislative activity and public policy discussions regarding energy affordability. Substantial investments are needed to support an increasingly decarbonized electric grid that the Utilities, regulators and stakeholders must balance with the need for affordable rates. While the Companies continue to monitor energy affordability concerns, they are unable to predict additional legislative, executive, or regulatory measures that may result from energy affordability concerns.
Clean Energy Goals
The success of the Companies’ efforts to meet clean energy policy goals and the impact of energy consumers' efforts to meet such goals on CECONY’s electric, gas and steam businesses and O&R’s electric and gas businesses may impact the Companies’ future financial condition. The Utilities expect electric usage to increase and gas and steam usage to decrease in their service territories as laws and policies are enacted and implemented that aim to reduce the carbon intensity of the energy that is consumed in their respective jurisdictions. The Utilities’ and their regulators’ efforts to maintain electric reliability in their service territories as electric usage increases may also impact the Companies’ future financial condition. The long-term future of the Utilities’ gas businesses depends upon the role that natural gas or other gaseous fuels will play in facilitating New York State’s and New York City’s climate goals. In addition, the impact and costs from climate change impacts on the Utilities’ systems and the success of the Utilities’ efforts to maintain system reliability and manage service interruptions resulting from severe weather may impact the Companies’ future financial condition, results of operations and liquidity.
Federal Regulation
In February 2026, the U.S. Supreme Court ruled that U.S. tariffs imposed under the International Emergency Economic Powers Act (IEEPA) on goods imported into the U.S. were unauthorized, but the ruling did not address the potential recovery of duties previously collected under the invalidated IEEPA tariffs. The Utilities are evaluating whether refunds of IEEPA tariffs paid through their third-party vendors are available to them.
Although tariffs have not had a significant impact on the Companies' operations or financial condition to date, the cost of materials has increased across various supply chain contract portfolios. If tariffs (other than the IEEPA tariffs) remain in place, the cost of materials is anticipated to continue to increase and also may lead to supply chain disruptions.
The Companies continue to assess tariffs and are unable to predict the impact on their operations or financial condition. In addition, the Companies continue to monitor the evolving legal and policy landscape related to tariffs and are unable to predict changes in laws, regulations, regulatory guidance, legal interpretations, policy positions or implementation actions that may result from these developments.
Federal Energy Regulatory Commission (FERC)
In March 2026, the FERC issued an order regarding CECONY’s and other parties’ longstanding dispute with PJM Interconnection LLC (PJM) regarding PJM’s cost-allocation methodology that assigned disproportionate costs from regional transmission expansion plan projects to CECONY and other New York-connected entities. The FERC directed PJM to change one element of the cost allocation methodology that would result in refunds to CECONY that would ultimately be credited to CECONY’s electric customers and initiated a proceeding to review the applicability of the methodology generally. The order is subject to rehearing and potential appeal. CECONY is unable to estimate the amount of any refund it could receive.
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Cyber Regulation
In April 2026, the NYSPSC adopted cybersecurity regulations for New York utilities, including CECONY and O&R, effective June 1, 2026. The regulations require the Utilities to, among other things, implement and maintain a risk‑based cybersecurity program aligned with the National Institute of Standards and Technology (NIST) Cybersecurity Framework, including governance oversight, periodic risk assessments and audits, continuous monitoring, security controls, incident response and recovery planning. The regulations also require prompt reporting of cybersecurity incidents to the NYSDPS (including cybersecurity data breaches experienced by third-party vendors), investigations following incidents and credit monitoring to customers following certain data breaches. Compliance will be phased in over specified periods set forth in the order, with incremental costs (including capital expenditures incurred to comply with the order) subject to deferral and review in future rate proceedings. The Utilities already comply with many of the requirements prescribed in the regulations, including alignment with the NIST framework, and expect to comply with all of the requirements of the regulations within the prescribed timeframe.
Con Edison Transmission
Con Edison Transmission, through its New York Transco partnership and jointly with the New York Power Authority (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. See the table under "Con Edison Transmission," below. Con Edison Transmission also participates in competitive solicitations to develop additional electric projects. The success of Con Edison Transmission’s efforts in these competitive solicitations and to grow its electric transmission portfolio may impact Con Edison’s future capital requirements.
In April 2026, CECONY and Con Edison Transmission entered into an agreement to sell their interests in Honeoye for $5 million in aggregate, of which approximately $1.5 million was attributed to CECONY, before certain closing adjustments and expenses. The closing is expected to occur following approval from the NYSPSC.
CECONY
Electric
CECONY provides electric service to approximately 3.7 million customers in all of New York City (except a part of Queens) and most of Westchester County, an approximately 660 square mile service area with a population of more than nine million.
Gas
CECONY delivers gas to approximately 1.1 million customers in Manhattan, the Bronx, parts of Queens and most of Westchester County.
Steam
CECONY operates the largest steam distribution system in the United States by producing and delivering approximately 16,975 MMlb of steam annually to approximately 1,485 customers in parts of Manhattan.
O&R
Electric
O&R and its utility subsidiary, Rockland Electric Company (RECO) (together referred to herein as O&R) provide electric service to approximately 0.3 million customers in southeastern New York and northern New Jersey an approximately 1,300 square mile service area.
Gas
O&R delivers gas to over 0.1 million customers in southeastern New York.
Certain financial data of Con Edison’s businesses are presented below:
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| Three Months Ended March 31, 2026 | At March 31, 2026 | |||||||||||||||||||||||||||||||
| (Millions of Dollars, except percentages) | Operating Revenues | Net Income for Common Stock | Assets | |||||||||||||||||||||||||||||
| CECONY | $4,654 | 91 | % | $733 | 79 | % | $69,576 | 93 | % | |||||||||||||||||||||||
| O&R | 441 | 9 | 52 | 6 | 4,552 | 6 | ||||||||||||||||||||||||||
| Total Utilities | $5,095 | 100 | % | $785 | 85 | % | $74,128 | 99 | % | |||||||||||||||||||||||
| Con Edison Transmission | 1 | — | 143 | 15 | 373 | 1 | ||||||||||||||||||||||||||
| Other (a) | (1) | — | (4) | — | 240 | — | ||||||||||||||||||||||||||
| Total Con Edison | $5,095 | 100 | % | $924 | 100 | % | $74,741 | 100 | % | |||||||||||||||||||||||
(a)Other includes the parent company, Con Edison’s tax equity investments and consolidation adjustments. See Note Q to the First Quarter Financial Statements.
One Big Beautiful Bill Act
On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was signed into law, containing a broad range of tax reform provisions, including extending and modifying certain key provisions of the federal Tax Cuts and Jobs Act of 2017, as enacted on December 22, 2017 (TCJA) and expanding certain incentives under the federal Inflation Reduction Act, as enacted on August 16, 2022 (IRA) while accelerating the phase-out of solar and wind credits. The Companies have assessed the potential impacts of the OBBBA and any such assessments may be impacted by future guidance to be issued by the Department of Treasury. However, based on management’s assessment, the provisions in the OBBBA are not expected to have a material impact on the Companies’ financial position, results of operations or liquidity.
Inflation Reduction Act
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. 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 liability exceeds the CAMT liability.
Beginning in 2024, based on the existing statute, the Companies are subject to and report the CAMT in their Consolidated Income Statements, Consolidated Statements of Cash Flows and the Consolidated Balance Sheets.
At March 31, 2026, Con Edison recorded a CAMT liability of $53 million ($45 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. The deferred tax asset related to the minimum tax credit carryforward will be realized to the extent the Companies’ consolidated deferred tax liabilities exceed the minimum tax credit carryforward. The Companies’ deferred tax liabilities are expected to exceed the minimum tax credit carryforward for the foreseeable future and thus no valuation allowance is required. 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.
On February 18, 2026, the IRS and the Department of Treasury issued Notice 2026-7, that provides additional interim guidance regarding the application of the CAMT and allows the Companies to deduct certain repair expenditures as a reduction to the Companies’ modified GAAP net income. This interim guidance is retroactive to the beginning of the IRA provisions in calculating the Companies’ CAMT liability. In the three months ended March 31, 2026, Con Edison reduced its CAMT carryforward by $205 million ($213 million of which is for CECONY) and increased its general business tax credit carryforward by approximately $154 million as a result of adopting the interim guidance for the 2024 and 2025 tax years. This guidance will also reduce the Companies’ CAMT liability going forward.
New York Legislation
In May 2025, New York adopted the 2025-2026 budget bill into law that included increases in payroll tax rates from 0.6 percent to 0.895 percent for CECONY and from 0.34 percent to 0.635 percent for O&R, effective July 1, 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
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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. Con Edison does not expect to be subject to the higher tax rate of 7.25 percent in 2026.
Results of Operations
Net income for common stock and earnings per share for the three months ended March 31, 2026 and 2025 were as follows:
| For the Three Months Ended March 31, | ||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| (Millions of Dollars, except per share amounts) | Net Income for Common Stock | Earnings per Share | ||||||||||||||||||||||||
| CECONY | $733 | $745 | $2.02 | $2.13 | ||||||||||||||||||||||
| O&R | 52 | 45 | 0.14 | 0.13 | ||||||||||||||||||||||
| Con Edison Transmission (a) | 143 | 10 | 0.40 | 0.03 | ||||||||||||||||||||||
| Other (b) | (4) | (9) | (0.01) | (0.03) | ||||||||||||||||||||||
| Con Edison (c) | $924 | $791 | $2.55 | $2.26 | ||||||||||||||||||||||
(a)Net income for common stock and earnings per share for the three months ended March 31, 2026 includes $134 million or $0.37 a share (after-tax) for the gain on the sale of Con Edison's equity interest in MVP. Net income for common stock and earnings per share for the three months ended March 31, 2026 includes $2 million or $0.01 a share (after-tax) for accretion of the basis difference of Con Edison's equity interest in MVP. Net income for common stock and earnings per share for the three months ended March 31, 2026 includes $(2) million or $(0.01) a share (after-tax) for the transaction costs associated with the strategic alternatives review of Con Edison's equity interests in MVP and Honeoye. Net income for common stock and earnings per share for the three months ended March 31, 2025 includes $2 million or $0.01 a share (after-tax) for accretion of the basis difference of Con Edison's equity interest in MVP. See “Investment in Mountain Valley Pipeline, LLC (MVP)” in Note A to the First Quarter Financial Statements.
(b) Other includes the parent company, Con Edison’s tax equity investments, consolidation adjustments and Broken Bow II, the deferred project that was classified as held for sale at December 31, 2024, with the sale and transfer completed in January 2025. Net income for common stock for the three months ended March 31, 2025 includes $(3) million or $(0.01) a share (after-tax) on the effects of HLBV accounting for tax equity investments in certain renewable electric projects. See Note Q to the First Quarter Financial Statements.
(c) Earnings per share on a diluted basis were $2.54 a share and $2.25 a share for the three months ended March 31, 2026 and 2025.
The following table presents the estimated effect of major factors on earnings per share and net income for common stock for the three months ended March 31, 2026 as compared with the 2025 period.
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| Variation for the Three Months Ended March 31, 2026 vs. 2025 | |||||||||||
| Net Income for Common Stock (Net of Tax) (Millions of Dollars) | Earnings per Share | ||||||||||
| CECONY (a) | |||||||||||
| Higher electric rate base | $15 | $0.04 | |||||||||
| Higher gas rate base | 14 | 0.04 | |||||||||
| Higher income from allowance for funds used during construction | 2 | 0.01 | |||||||||
| Higher electric, gas and steam operations and maintenance expense | (28) | (0.08) | |||||||||
| Higher interest expense on long-term debt | (9) | (0.03) | |||||||||
| Higher corporate expenses | (5) | (0.01) | |||||||||
| Dilutive effect of issuance of common shares | — | (0.08) | |||||||||
| Other | (1) | — | |||||||||
| Total CECONY | (12) | (0.11) | |||||||||
| O&R (a) | |||||||||||
| Electric base rate increase | 5 | 0.01 | |||||||||
| Gas base rate increase | 3 | 0.01 | |||||||||
| Higher interest expense on long-term debt | (3) | (0.01) | |||||||||
| Other | 2 | — | |||||||||
| Total O&R | 7 | 0.01 | |||||||||
| Con Edison Transmission | |||||||||||
| Gain on the sale of Con Edison's equity interest in MVP | 134 | 0.37 | |||||||||
| Transaction costs associated with the strategic alternatives review of Con Edison's equity investments in MVP and Honeoye | (2) | (0.01) | |||||||||
| Other | 1 | 0.01 | |||||||||
| Total Con Edison Transmission | 133 | 0.37 | |||||||||
| Other, including parent company expenses (b) | |||||||||||
| HLBV effects | 3 | 0.01 | |||||||||
| Other | 2 | 0.01 | |||||||||
| Total Other, including parent company expenses | 5 | 0.02 | |||||||||
| Total Reported (GAAP basis) | $133 | $0.29 | |||||||||
(a)Under the revenue decoupling mechanisms in the Utilities’ New York electric and gas rate plans, revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved. The Utilities' gas and CECONY’s steam sales are 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)Other includes the parent company, Con Edison's tax equity investments, consolidation adjustments and Broken Bow II, the deferred project that was classified as held for sale at December 31, 2024, with the sale and transfer completed in January 2025. See Note Q to the First Quarter Financial Statements. | |||||||||||
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The Companies’ other operations and maintenance expenses for the three months ended March 31, 2026 and 2025 were as follows:
| For the Three Months Ended March 31, | ||||||||||||||
| (Millions of Dollars) | 2026 | 2025 | ||||||||||||
| CECONY | ||||||||||||||
| Operations | $523 | $485 | ||||||||||||
| Pensions and other postretirement benefits | (19) | 6 | ||||||||||||
| Health care and other benefits | 61 | 50 | ||||||||||||
| Regulatory fees and assessments (a) | 90 | 124 | ||||||||||||
| Other | 188 | 189 | ||||||||||||
| Total CECONY | $843 | $854 | ||||||||||||
| O&R | 93 | 95 | ||||||||||||
| Con Edison Transmission | 3 | 2 | ||||||||||||
| Other (b) | 1 | 1 | ||||||||||||
| Total other operations and maintenance expenses | $940 | $952 | ||||||||||||
(a)Includes Demand Side Management, System Benefit Charges and Public Service Law 18A assessments that are collected in revenues.
(b)Other includes the parent company, Con Edison’s tax equity investments, consolidation adjustments and Broken Bow II, the deferred project that was classified as held for sale at December 31, 2024, with the sale and transfer completed in January 2025. See Note Q to the First Quarter Financial Statements.
A discussion of the results of operations by principal business segment for the three months ended March 31, 2026 and 2025 follows. For additional business segment financial information, see Note M to the First Quarter Financial Statements.
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The Companies’ results of operations for the three months ended March 31, 2026 and 2025 were as follows:
| CECONY | O&R | Con Edison Transmission | Other (a) | Con Edison (b) | ||||||||||||||||||||||||||||
| (Millions of Dollars) | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||
| Operating revenues | $4,654 | $4,441 | $441 | $356 | $1 | $1 | $(1) | $— | $5,095 | $4,798 | ||||||||||||||||||||||
| Purchased power | 610 | 635 | 146 | 86 | — | — | — | — | 756 | 721 | ||||||||||||||||||||||
| Fuel | 189 | 127 | — | — | — | — | — | — | 189 | 127 | ||||||||||||||||||||||
| Gas purchased for resale | 361 | 305 | 66 | 56 | — | — | (1) | 1 | 426 | 362 | ||||||||||||||||||||||
| Other operations and maintenance | 843 | 854 | 93 | 95 | 3 | 2 | 1 | 1 | 940 | 952 | ||||||||||||||||||||||
| Depreciation and amortization | 539 | 533 | 33 | 31 | — | — | — | — | 572 | 564 | ||||||||||||||||||||||
| Taxes, other than income taxes | 1,006 | 920 | 27 | 26 | — | — | 2 | 1 | 1,035 | 947 | ||||||||||||||||||||||
| Operating income (loss) | 1,106 | 1,067 | 76 | 62 | (2) | (1) | (3) | (3) | 1,177 | 1,125 | ||||||||||||||||||||||
| Gain on sale of interest in Mountain Valley Pipeline, LLC | — | — | — | — | 189 | — | — | — | 189 | — | ||||||||||||||||||||||
| Other income (deductions) | 144 | 198 | 10 | 12 | 15 | 16 | — | (5) | 169 | 221 | ||||||||||||||||||||||
| Net interest expense | 286 | 293 | 18 | 16 | — | — | 4 | 4 | 308 | 313 | ||||||||||||||||||||||
| Income (loss) before income tax expense (benefit) | 964 | 972 | 68 | 58 | 202 | 15 | (7) | (12) | 1,227 | 1,033 | ||||||||||||||||||||||
| Income tax expense (benefit) | 231 | 227 | 16 | 13 | 59 | 5 | (3) | (3) | 303 | 242 | ||||||||||||||||||||||
| Net income (loss) for common stock | $733 | $745 | $52 | $45 | $143 | $10 | $(4) | $(9) | $924 | $791 | ||||||||||||||||||||||
(a)Other includes the parent company, Con Edison’s tax equity investments, consolidation adjustments and Broken Bow II, the deferred project that was classified as held for sale at December 31, 2024, with the sale and transfer completed in January 2025. See Note Q to the First Quarter Financial Statements.
(b)Represents the consolidated results of operations of Con Edison and its businesses.
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CECONY
| Three Months Ended March 31, 2026 | Three Months Ended March 31, 2025 | ||||||||||||||||||||||||||||
| (Millions of Dollars) | Electric | Gas | Steam | 2026 Total | Electric | Gas | Steam | 2025 Total | 2026-2025 Variation | ||||||||||||||||||||
| Operating revenues | $2,758 | $1,464 | $432 | $4,654 | $2,686 | $1,401 | $354 | $4,441 | $213 | ||||||||||||||||||||
| Purchased power | 591 | — | 19 | 610 | 621 | — | 14 | 635 | (25) | ||||||||||||||||||||
| Fuel | 95 | — | 94 | 189 | 66 | — | 61 | 127 | 62 | ||||||||||||||||||||
| Gas purchased for resale | — | 361 | — | 361 | — | 305 | — | 305 | 56 | ||||||||||||||||||||
| Other operations and maintenance | 649 | 137 | 57 | 843 | 659 | 139 | 56 | 854 | (11) | ||||||||||||||||||||
| Depreciation and amortization | 387 | 122 | 30 | 539 | 389 | 118 | 26 | 533 | 6 | ||||||||||||||||||||
| Taxes, other than income taxes | 702 | 223 | 81 | 1,006 | 662 | 199 | 59 | 920 | 86 | ||||||||||||||||||||
| Operating income | $334 | $621 | $151 | $1,106 | $289 | $640 | $138 | $1,067 | $39 | ||||||||||||||||||||
Electric
CECONY’s results of electric operations for the three months ended March 31, 2026 compared with the 2025 period were as follows:
| For the Three Months Ended | |||||||||||
| (Millions of Dollars) | March 31, 2026 | March 31, 2025 | Variation | ||||||||
| Operating revenues | $2,758 | $2,686 | $72 | ||||||||
| Purchased power | 591 | 621 | (30) | ||||||||
| Fuel | 95 | 66 | 29 | ||||||||
| Other operations and maintenance | 649 | 659 | (10) | ||||||||
| Depreciation and amortization | 387 | 389 | (2) | ||||||||
| Taxes, other than income taxes | 702 | 662 | 40 | ||||||||
| Electric operating income | $334 | $289 | $45 | ||||||||
CECONY’s electric sales and deliveries for the three months ended March 31, 2026 compared with the 2025 period were:
| Millions of kWh Delivered | Revenues in Millions (a) | ||||||||||||||||||||||||||||
| For the Three Months Ended | For the Three Months Ended | ||||||||||||||||||||||||||||
| Description | March 31, 2026 | March 31, 2025 | Variation | Percent Variation | March 31, 2026 | March 31, 2025 | Variation | Percent Variation | |||||||||||||||||||||
| Residential/Religious (b) | 3,416 | 3,037 | 379 | 12.5 | % | $1,244 | $1,131 | $113 | 10.0 | % | |||||||||||||||||||
| Commercial/Industrial | 2,974 | 2,912 | 62 | 2.1 | 878 | 867 | 11 | 1.3 | |||||||||||||||||||||
| Retail choice customers | 4,935 | 5,183 | (248) | (4.8) | 519 | 603 | (84) | (13.9) | |||||||||||||||||||||
| NYPA, Municipal Agency and other sales | 2,422 | 2,443 | (21) | (0.9) | 202 | 197 | 5 | 2.5 | |||||||||||||||||||||
| Other operating revenues (c) | — | — | — | — | (85) | (112) | 27 | (24.1) | |||||||||||||||||||||
| Total | 13,747 | 13,575 | 172 | 1.3 | % | (d) | $2,758 | $2,686 | $72 | 2.7 | % | ||||||||||||||||||
(a)Revenues from electric sales are subject to a revenue decoupling mechanism, as a result of which delivery revenues generally are 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 decreased 0.1 percent in the three months ended March 31, 2026 compared with the 2025 period.
Operating revenues increased $72 million in the three months ended March 31, 2026 compared with the 2025 period primarily due to higher unbilled revenue ($30 million), an increase in other revenue ($20 million) and an increase in revenues from the electric rate plan ($14 million).
Purchased power expenses decreased $30 million in the three months ended March 31, 2026 compared with the 2025 period due to lower unit costs ($87 million), offset in part by higher purchased volumes ($57 million).
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Fuel costs increased $29 million in the three months ended March 31, 2026 compared with the 2025 period due to higher unit costs ($15 million) and higher purchased volumes from the company's electric generating facilities ($14 million).
Other operations and maintenance expenses decreased $10 million in the three months ended March 31, 2026 compared with the 2025 period primarily due to lower costs for pension and other postretirement benefits, reflecting reconciliation to the rate plan level ($17 million) and lower total surcredits for assessments and fees that are collected in revenues from customers ($8 million), offset in part by higher electric operations maintenance activities ($14 million).
Taxes, other than income taxes increased $40 million in the three months ended March 31, 2026 compared with the 2025 period primarily due to higher property taxes ($44 million) and higher state and local revenue taxes ($6 million), offset in part by higher deferral of under-collected property taxes ($9 million).
Gas
CECONY’s results of gas operations for the three months ended March 31, 2026 compared with the 2025 period were as follows:
| For the Three Months Ended | |||||||||||
| (Millions of Dollars) | March 31, 2026 | March 31, 2025 | Variation | ||||||||
| Operating revenues | $1,464 | $1,401 | $63 | ||||||||
| Gas purchased for resale | 361 | 305 | 56 | ||||||||
| Other operations and maintenance | 137 | 139 | (2) | ||||||||
| Depreciation and amortization | 122 | 118 | 4 | ||||||||
| Taxes, other than income taxes | 223 | 199 | 24 | ||||||||
| Gas operating income | $621 | $640 | $(19) | ||||||||
CECONY’s gas sales and deliveries, excluding off-system sales, for the three months ended March 31, 2026 compared with the 2025 period were:
| Thousands of Dt Delivered | Revenues in Millions (a) | ||||||||||||||||||||||||||||
| For the Three Months Ended | For the Three Months Ended | ||||||||||||||||||||||||||||
| Description | March 31, 2026 | March 31, 2025 | Variation | Percent Variation | March 31, 2026 | March 31, 2025 | Variation | Percent Variation | |||||||||||||||||||||
| Residential | 27,369 | 26,261 | 1,108 | 4.2 | % | $603 | $592 | $11 | 1.9 | % | |||||||||||||||||||
| General | 17,302 | 15,881 | 1,421 | 8.9 | 368 | 336 | 32 | 9.5 | |||||||||||||||||||||
| Firm transportation | 35,553 | 35,084 | 469 | 1.3 | 410 | 430 | (20) | (4.7) | |||||||||||||||||||||
| Total firm sales and transportation | 80,224 | 77,226 | 2,998 | 3.9 | % | (b) | $1,381 | $1,358 | $23 | 1.7 | % | ||||||||||||||||||
| Interruptible sales | 1,066 | 1,110 | (44) | (4.0) | 19 | 12 | 7 | 58.3 | |||||||||||||||||||||
| NYPA | 7,682 | 9,900 | (2,218) | (22.4) | 1 | 1 | — | — | |||||||||||||||||||||
| Generation plants | 12,666 | 12,697 | (31) | (0.2) | 5 | 4 | 1 | 25.0 | |||||||||||||||||||||
| Other | 5,529 | 6,247 | (718) | (11.5) | 14 | 15 | (1) | (6.7) | |||||||||||||||||||||
| Other operating revenues (c) | — | — | — | — | 44 | 11 | 33 | Large | |||||||||||||||||||||
| Total | 107,167 | 107,180 | (13) | — | % | $1,464 | $1,401 | $63 | 4.5 | % | |||||||||||||||||||
(a)Revenues from 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 variations, primarily billing days, firm gas sales and transportation volumes in CECONY’s service area decreased (3.2) percent in the three months ended March 31, 2026 compared with the 2025 period.
(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 plan.
Operating revenues increased $63 million in the three months ended March 31, 2026 compared with the 2025 period primarily due to higher gas purchased for resale ($56 million).
Gas purchased for resale increased $56 million in the three months ended March 31, 2026 compared with the 2025 period due to higher unit costs ($80 million), offset in part by lower purchased volumes ($24 million).
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Depreciation and amortization expenses increased $4 million in the three months ended March 31, 2026 compared with the 2025 period primarily due to higher gas utility plant balances.
Taxes, other than income taxes increased $24 million in the three months ended March 31, 2026 compared with the 2025 period primarily due to higher deferral of over-collected property taxes ($9 million), higher property taxes ($6 million), higher state and local revenue taxes ($5 million) and higher payroll taxes ($2 million).
Steam
CECONY’s results of steam operations for the three months ended March 31, 2026 compared with the 2025 period were as follows:
| For the Three Months Ended | |||||||||||
| (Millions of Dollars) | March 31, 2026 | March 31, 2025 | Variation | ||||||||
| Operating revenues | $432 | $354 | $78 | ||||||||
| Purchased power | 19 | 14 | 5 | ||||||||
| Fuel | 94 | 61 | 33 | ||||||||
| Other operations and maintenance | 57 | 56 | 1 | ||||||||
| Depreciation and amortization | 30 | 26 | 4 | ||||||||
| Taxes, other than income taxes | 81 | 59 | 22 | ||||||||
| Steam operating income | $151 | $138 | $13 | ||||||||
CECONY’s steam sales and deliveries for the three months ended March 31, 2026 compared with the 2025 period were:
| Millions of Pounds Delivered | Revenues in Millions | ||||||||||||||||||||||||||||
| For the Three Months Ended | For the Three Months Ended | ||||||||||||||||||||||||||||
| Description | March 31, 2026 | March 31, 2025 | Variation | Percent Variation | March 31, 2026 | March 31, 2025 | Variation | Percent Variation | |||||||||||||||||||||
| General | 367 | 308 | 59 | 19.2 | % | $27 | $20 | $7 | 35.0 | % | |||||||||||||||||||
| Apartment house | 2,395 | 2,355 | 40 | 1.7 | 115 | 95 | 20 | 21.1 | |||||||||||||||||||||
| Annual power | 5,176 | 5,007 | 169 | 3.4 | 290 | 240 | 50 | 20.8 | |||||||||||||||||||||
| Other operating revenues (a) | — | — | — | — | — | (1) | 1 | Large | |||||||||||||||||||||
| Total | 7,938 | 7,670 | 268 | 3.5 | % | (b) | $432 | $354 | $78 | 22.0 | % | ||||||||||||||||||
(a)Other steam operating revenues generally reflect changes in regulatory assets and liabilities in accordance with CECONY’s rate plan.
(b)After adjusting for variations, primarily weather and billing days, steam sales and deliveries in the company's service area decreased (6.1) percent in the three months ended March 31, 2026 compared with the 2025 period.
Operating revenues increased $78 million in the three months ended March 31, 2026 compared with the 2025 period primarily due to higher fuel costs ($33 million), an increase in steam revenues under the company's steam rate plan ($26 million) and higher purchased power expenses ($5 million).
Purchased power expenses increased $5 million in the three months ended March 31, 2026 compared with the 2025 period due to higher unit costs ($5 million).
Fuel costs increased $33 million in the three months ended March 31, 2026 compared with the 2025 period due to higher unit costs ($29 million) and higher purchased volumes from the company's steam generating facilities ($4 million).
Depreciation and amortization expenses increased $4 million in the three months ended March 31, 2026 compared with the 2025 period primarily due to higher steam utility plant balances.
Taxes, other than income taxes increased $22 million in the three months ended March 31, 2026 compared with the 2025 period primarily due to a higher deferral of over-collected property taxes ($23 million).
Taxes, Other Than Income Taxes
At $1,006 million, taxes other than income taxes remain one of CECONY’s largest operating expenses for the three months ended March 31, 2026. The principal components of, and variations in, taxes other than income taxes were:
52
| For the Three Months Ended March 31, | |||||||||||||||||
| (Millions of Dollars) | 2026 | 2025 | Variation | ||||||||||||||
| Property taxes | $775 | $726 | $49 | ||||||||||||||
| State and local taxes related to revenue receipts | 141 | 128 | 13 | ||||||||||||||
| Payroll taxes | 36 | 35 | 1 | ||||||||||||||
| Other taxes (b) | 54 | 31 | 23 | ||||||||||||||
| Total | $1,006 | (a) | $920 | (a) | $86 | ||||||||||||
(a)Including sales tax on customers’ bills, total taxes other than income taxes in 2026 and 2025 were $1,253 million and $1,157 million, respectively.
(b)Including the deferral of over-collected property taxes in 2026 and 2025 were $53 million and $30 million, respectively.
Other Income (Deductions)
Other income decreased $54 million in the three months ended March 31, 2026 compared with the 2025 period primarily due to lower credits associated with components of pension and other postretirement benefits other than service cost ($60 million), offset in part by an increase in AFUDC ($2 million).
Net Interest Expense
Net interest expense decreased $7 million in the three months ended March 31, 2026 compared with the 2025 period primarily due to lower other interest expense ($20 million), offset in part by higher interest on long-term debt resulting from increased debt balances ($12 million).
Income Tax Expense
Income taxes increased $4 million in the three months ended March 31, 2026 compared with the 2025 period primarily due to lower benefit from the amortization of MTA tax surcredit ($3 million) and lower write-offs of uncollectible accounts ($7 million), offset in part by higher amortization of excess deferred federal income taxes ($4 million) and lower income before income tax expense ($2 million).
O&R
| For the Three Months Ended March 31, 2026 | For the Three Months Ended March 31, 2025 | ||||||||||||||||||||||
| (Millions of Dollars) | Electric | Gas | 2026 Total | Electric | Gas | 2025 Total | 2026-2025 Variation | ||||||||||||||||
| Operating revenues | $282 | $159 | $441 | $215 | $141 | $356 | $85 | ||||||||||||||||
| Purchased power | 146 | — | 146 | 86 | — | 86 | 60 | ||||||||||||||||
| Gas purchased for resale | — | 66 | 66 | — | 56 | 56 | 10 | ||||||||||||||||
| Other operations and maintenance | 71 | 22 | 93 | 75 | 20 | 95 | (2) | ||||||||||||||||
| Depreciation and amortization | 22 | 11 | 33 | 21 | 10 | 31 | 2 | ||||||||||||||||
| Taxes, other than income taxes | 17 | 10 | 27 | 16 | 10 | 26 | 1 | ||||||||||||||||
| Operating income | $26 | $50 | $76 | $17 | $45 | $62 | $14 | ||||||||||||||||
Electric
O&R’s results of electric operations for the three months ended March 31, 2026 compared with the 2025 period were as follows:
| For the Three Months Ended | |||||||||||
| (Millions of Dollars) | March 31, 2026 | March 31, 2025 | Variation | ||||||||
| Operating revenues | $282 | $215 | $67 | ||||||||
| Purchased power | 146 | 86 | 60 | ||||||||
| Other operations and maintenance | 71 | 75 | (4) | ||||||||
| Depreciation and amortization | 22 | 21 | 1 | ||||||||
| Taxes, other than income taxes | 17 | 16 | 1 | ||||||||
| Electric operating income | $26 | $17 | $9 | ||||||||
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O&R’s electric sales and deliveries for the three months ended March 31, 2026 compared with the 2025 period were:
| Millions of kWh Delivered | Revenues in Millions (a) | ||||||||||||||||||||||||||||
| For the Three Months Ended | For the Three Months Ended | ||||||||||||||||||||||||||||
| Description | March 31, 2026 | March 31, 2025 | Variation | Percent Variation | March 31, 2026 | March 31, 2025 | Variation | Percent Variation | |||||||||||||||||||||
| Residential/Religious (b) | 619 | 560 | 59 | 10.5 | % | $184 | $125 | $59 | 47.2 | % | |||||||||||||||||||
| Commercial/Industrial | 311 | 287 | 24 | 8.4 | 67 | 48 | 19 | 39.6 | |||||||||||||||||||||
| Retail choice customers | 585 | 536 | 49 | 9.1 | 33 | 34 | (1) | (2.9) | |||||||||||||||||||||
| Public authorities | 31 | 29 | 2 | 6.9 | 4 | 4 | — | — | |||||||||||||||||||||
| Other operating revenues (c) | — | — | — | — | (6) | 4 | (10) | Large | |||||||||||||||||||||
| Total | 1,546 | 1,412 | 134 | 9.5 | % | (d) | $282 | $215 | $67 | 31.2 | % | ||||||||||||||||||
(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 1.9 percent in the three months ended March 31, 2026 compared with the 2025 period.
Operating revenues increased $67 million in the three months ended March 31, 2026 compared with the 2025 period primarily due to higher purchased power expenses ($60 million) and higher revenues from the company's New York electric rate plan ($7 million).
Purchased power expense increased $60 million in the three months ended March 31, 2026 compared with the 2025 period due to higher unit costs ($41 million) and higher purchased volumes ($19 million).
Other operations and maintenance decreased $(4) million in the three months ended March 31, 2026 compared with the 2025 period primarily due to lower regulatory system benefit charges ($4 million).
Gas
O&R’s results of gas operations for the three months ended March 31, 2026 compared with the 2025 period were as follows:
| For the Three Months Ended | |||||||||||
| (Millions of Dollars) | March 31, 2026 | March 31, 2025 | Variation | ||||||||
| Operating revenues | $159 | $141 | $18 | ||||||||
| Gas purchased for resale | 66 | 56 | 10 | ||||||||
| Other operations and maintenance | 22 | 20 | 2 | ||||||||
| Depreciation and amortization | 11 | 10 | 1 | ||||||||
| Taxes, other than income taxes | 10 | 10 | — | ||||||||
| Gas operating income | $50 | $45 | $5 | ||||||||
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O&R’s gas sales and deliveries, excluding off-system sales, for the three months ended March 31, 2026 compared with the 2025 period were:
| Thousands of Dt Delivered | Revenues in Millions (a) | ||||||||||||||||||||||||||||
| For the Three Months Ended | For the Three Months Ended | ||||||||||||||||||||||||||||
| Description | March 31, 2026 | March 31, 2025 | Variation | Percent Variation | March 31, 2026 | March 31, 2025 | Variation | Percent Variation | |||||||||||||||||||||
| Residential | 7,687 | 7,145 | 542 | 7.6 | % | $137 | $109 | $28 | 25.7 | % | |||||||||||||||||||
| General | 1,635 | 1,511 | 124 | 8.2 | 23 | 19 | 4 | 21.1 | |||||||||||||||||||||
| Firm transportation | 2,621 | 2,601 | 20 | 0.8 | 22 | 18 | 4 | 22.2 | |||||||||||||||||||||
| Total firm sales and transportation | 11,943 | 11,257 | 686 | 6.1 | % | (b) | $182 | $146 | $36 | 24.7 | % | ||||||||||||||||||
| Interruptible sales | 951 | 1,092 | (141) | (12.9) | 2 | 2 | — | — | |||||||||||||||||||||
| Generation plants | — | 2 | (2) | Large | — | — | — | — | |||||||||||||||||||||
| Other | 350 | 345 | 5 | 1.4 | 1 | — | 1 | Large | |||||||||||||||||||||
| Other gas revenues | — | — | — | — | (26) | (7) | (19) | Large | |||||||||||||||||||||
| Total | 13,244 | 12,696 | 548 | 4.3 | % | $159 | $141 | $18 | 12.8 | % | |||||||||||||||||||
(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 decreased (0.3) percent in the three months ended March 31, 2026 compared with the 2025 period.
Operating revenues increased $18 million in the three months ended March 31, 2026 compared with the 2025 period primarily due to higher gas purchased for resale ($10 million) and higher revenues from the company's New York gas rate plan ($8 million).
Gas purchased for resale increased $10 million in the three months ended March 31, 2026 compared with the 2025 period due to higher unit costs ($11 million), offset in part by lower purchased volumes ($1 million).
Taxes, Other Than Income Taxes
Taxes, other than income taxes, increased $1 million in 2026 compared with 2025 for the three months ended March 31, 2026. The principal components of taxes, other than income taxes, were:
| For the Three Months Ended March 31, | |||||||||||||||||
| (Millions of Dollars) | 2026 | 2025 | Variation | ||||||||||||||
| Property taxes | $18 | $18 | $— | ||||||||||||||
| State and local taxes related to revenue receipts | 5 | 4 | 1 | ||||||||||||||
| Payroll taxes | 4 | 4 | — | ||||||||||||||
| Total | $27 | (a) | $26 | (a) | $1 | ||||||||||||
(a)Including sales tax on customers’ bills, total taxes other than income taxes in 2026 and 2025 were $39 million and $34 million, respectively.
Income Tax Expense
Income taxes increased $3 million in the three months ended March 31, 2026 compared with the 2025 period primarily due to higher income before income tax expense.
Con Edison Transmission
Income Tax Expense
Income taxes increased $54 million in the three months ended March 31, 2026 compared with the 2025 period primarily due to higher income before income tax expense from the sale of its equity interest in MVP.
55
Liquidity and Capital Resources
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 $3,500 million revolving credit agreement (the Credit Agreement) in place under which banks are committed to provide loans on a revolving credit basis until March 2031, which may be extended for two additional one-year terms, 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. See Note D to the First Quarter Financial Statements.
The FERC has authorized CECONY through April 30, 2028 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 $5,000 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.
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The Companies’ cash, temporary cash investments and restricted cash resulting from operating, investing and financing activities for the three months ended March 31, 2026 and 2025 are summarized as follows:
| For the Three Months Ended March 31, | ||||||||||||||||||||||||||||||||
| CECONY | O&R | Con Edison Transmission | Other (a)(b) | Con Edison (b) | ||||||||||||||||||||||||||||
| (Millions of Dollars) | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||
| Operating activities | $128 | $763 | $53 | $47 | $(5) | $13 | $(2) | $14 | $174 | $837 | ||||||||||||||||||||||
Investing activities | (1,169) | (1,169) | (111) | (93) | 342 | (14) | 2 | 45 | (936) | (1,231) | ||||||||||||||||||||||
| Financing activities | (476) | (555) | 87 | 47 | (331) | (2) | (1) | (69) | (721) | (579) | ||||||||||||||||||||||
| Net change for the period | (1,517) | (961) | 29 | 1 | 6 | (3) | (1) | (10) | (1,483) | (973) | ||||||||||||||||||||||
| Balance at beginning of period | 1,581 | 1,254 | 24 | 38 | 19 | 23 | 6 | 18 | 1,630 | 1,333 | ||||||||||||||||||||||
| Balance at end of period (c) | $64 | $293 | $53 | $39 | $25 | $20 | $5 | $8 | $147 | $360 | ||||||||||||||||||||||
(a) Other includes the parent company, Con Edison’s tax equity investments, consolidation adjustments and Broken Bow II, the deferred project that was classified as held for sale at December 31, 2024, with the sale and transfer completed in January 2025. See Note Q to the First Quarter Financial Statements.
(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 First Quarter Financial Statements.
57
Cash Flows from Operating Activities
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.
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. Pursuant to their rate plans, the Utilities 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 Note J to the First Quarter Financial Statements.
In general, the Utilities suspended service disconnections during the COVID-19 pandemic and have since resumed such activities in accordance with applicable law. At March 31, 2026, CECONY's and O&R's customer accounts receivables balances of $3,120 million and $162 million, respectively, included aged accounts receivables (balances outstanding in excess of 60 days) of $1,352 million and $28 million, respectively. A continued slow recovery of accounts receivable balances has impacted and is expected to continue to impact the Companies' liquidity. See “Aged Accounts Receivable Balances,” above.
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.
Net cash flows from operating activities for the three months ended March 31, 2026 for Con Edison were $663 million lower than in the 2025 period. The change in net cash flows for Con Edison primarily reflects:
•lower net deferred credits, noncurrent liabilities and other regulatory liabilities of $350 million primarily due to higher recoverable energy costs of $348 million
•an increase in prepayments of $137 million
•a decrease in accounts payable of $80 million; and
•an increase in unbilled revenue and net unbilled revenue deferrals of $38 million.
Net cash flows from operating activities for the three months ended March 31, 2026 for CECONY were $635 million lower than in the 2025 period. The change in net cash flows for CECONY primarily reflects:
•lower net deferred credits, noncurrent liabilities and other regulatory liabilities of $363 million primarily due to higher recoverable energy costs $359 million; and
•higher accounts receivable from (to) affiliated companies of $194 million.
Cash Flows Used in Investing Activities
The following table summarizes key components of Con Edison’s investing cash flows.
| For the Three Months Ended March 31, | |||||||||||
| (Millions of Dollars) | 2026 | 2025 | Variance | ||||||||
| INVESTING ACTIVITIES | |||||||||||
| Utility capital expenditures | $(1,172) | $(1,155) | $(17) | ||||||||
| Cost of removal less salvage | (106) | (107) | 1 | ||||||||
| Non-utility capital expenditures | (1) | — | (1) | ||||||||
| Proceeds from sale of interest in Mountain Valley Pipeline, LLC | 358 | — | 358 | ||||||||
| Proceeds from sale of Broken Bow II, net of cash and cash equivalents sold | — | 45 | (45) | ||||||||
| Other investing activities | (15) | (14) | (1) | ||||||||
| NET CASH FLOWS USED IN INVESTING ACTIVITIES | $(936) | $(1,231) | $295 | ||||||||
Net cash flows used in investing activities for Con Edison were $295 million lower for the three months ended March 31, 2026 compared with the 2025 period. The change for Con Edison primarily reflects:
•the proceeds from the sale of Con Edison Transmission's equity interest in MVP of $358 million.
58
Offset in part by
•prior year proceeds from the sale of Broken Bow II of ($45 million); and
•higher utility capital expenditures of ($17 million).
The following table summarizes key components of CECONY’s investing cash flows.
| For the Three Months Ended March 31, | |||||||||||
| (Millions of Dollars) | 2026 | 2025 | Variance | ||||||||
| INVESTING ACTIVITIES | |||||||||||
| Utility capital expenditures | $(1,067) | $(1,064) | $(3) | ||||||||
| Cost of removal less salvage | (102) | (105) | 3 | ||||||||
| NET CASH FLOWS USED IN INVESTING ACTIVITIES | $(1,169) | $(1,169) | $— | ||||||||
Net cash flows used in investing activities for CECONY remained constant for the three months ended March 31, 2026 compared with the 2025 period. The change for CECONY primarily reflects:
•an increase in utility capital expenditures of $3 million.
Offset by
•a decrease in cost of removal less salvage of ($3 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 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.
Cash Flows Used In Financing Activities
The following table summarizes key components of Con Edison’s financing cash flows.
| For the Three Months Ended March 31, | |||||||||||
| (Millions of Dollars) | 2026 | 2025 | Variance | ||||||||
| FINANCING ACTIVITIES | |||||||||||
| Net payment of short-term debt (Maturities 90 days or less) | $(406) | $(1,820) | $1,414 | ||||||||
| Payment of short-term debt (Maturities greater than 90 days) | (300) | — | (300) | ||||||||
| Borrowing under term loan | — | 200 | (200) | ||||||||
| Repayment of term loan | (500) | — | (500) | ||||||||
| Debt issuance costs | (1) | (1) | — | ||||||||
| Common stock dividends | (308) | (282) | (26) | ||||||||
| Issuance of common shares - public offering | 776 | 1,308 | (532) | ||||||||
| Issuance of common shares for stock plans | 18 | $16 | 2 | ||||||||
| NET CASH FLOWS USED IN FINANCING ACTIVITIES | $(721) | $(579) | $(142) | ||||||||
Net cash flows used in financing activities for Con Edison were $142 million higher for the three months ended March 31, 2026 compared with the 2025 period and reflect the following transactions:
•a decrease in the issuance of common shares - public offering of $532 million;
•higher repayment of term loan of $500 million;
•an increase in the payment of short-term debt (maturities greater than 90 days) of $300 million; and
•a decrease in borrowing under term loan of $200 million.
Offset by
•a decrease in the net payment of short-term debt (maturities 90 days or less) of ($1,414 million).
59
The following table summarizes key components of CECONY’s financing cash flows.
| For the Three Months Ended March 31, | |||||||||||
| (Millions of Dollars) | 2026 | 2025 | Variance | ||||||||
| FINANCING ACTIVITIES | |||||||||||
| Net payment of short-term debt (Maturities 90 days or less) | $(347) | $(1,694) | $1,347 | ||||||||
| Payment of short-term debt (Maturities greater than 90 days) | (300) | — | (300) | ||||||||
| Borrowing under term loan | — | 200 | (200) | ||||||||
| Repayment of term loan | (500) | — | (500) | ||||||||
| Debt issuance costs | (1) | (2) | 1 | ||||||||
| Capital contribution by Con Edison | 981 | 1,225 | (244) | ||||||||
| Dividend to Con Edison | (309) | (284) | (25) | ||||||||
| NET CASH FLOWS USED IN FINANCING ACTIVITIES | $(476) | $(555) | $79 | ||||||||
•lower net payment of short-term debt (maturities 90 days or less) of $1,347 million.
Offset in part by
•an increase due to the repayment of a term loan of ($500 million);
•higher payment of short-term debt (maturities greater than 90 days) of ($300 million);
•a decrease in contributed equity by Con Edison of ($244 million); and
•a decrease in borrowing under term loan of ($200 million).
Cash flows from financing activities of the Companies also reflect commercial paper issuances and repayments. The commercial paper amounts outstanding at March 31, 2026 and 2025 and the average daily balances for the three months ended March 31, 2026 and 2025 for Con Edison and CECONY were as follows:
| 2026 | 2025 | |||||||||||||
| (Millions of Dollars, except Weighted Average Yield) | Outstanding at March 31, | Daily average | Outstanding at March 31, | Daily average | ||||||||||
| Con Edison | $869 | $316 | $350 | $1,362 | ||||||||||
| CECONY | $593 | $843 | $— | $952 | ||||||||||
| Weighted average yield | 4.0 | % | 3.9 | % | 4.6 | % | 4.6 | % | ||||||
Capital Resources
For each of the Companies, the common equity ratio at March 31, 2026 and December 31, 2025 was:
| Common Equity Ratio (Percent of total capitalization) | ||||||||
| March 31, 2026 | December 31, 2025 | |||||||
| Con Edison | 50.0 | 48.6 | ||||||
| CECONY | 49.3 | 47.8 | ||||||
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Assets, Liabilities and Equity
The Companies' assets, liabilities, and equity at March 31, 2026 and December 31, 2025 are summarized as follows.
| CECONY | O&R | Con Edison Transmission | Other (a) | Con Edison (b) | ||||||||||||||||||||||||||||
| (Millions of Dollars) | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||
| ASSETS | ||||||||||||||||||||||||||||||||
Current assets | $5,994 | $6,433 | $413 | $337 | $58 | $21 | $(179) | $(41) | $6,286 | $6,750 | ||||||||||||||||||||||
| Investments | 727 | 725 | 22 | 22 | 311 | 462 | 3 | 4 | 1,063 | 1,213 | ||||||||||||||||||||||
| Net plant | 52,517 | 51,861 | 3,584 | 3,540 | 3 | 3 | — | (1) | 56,104 | 55,403 | ||||||||||||||||||||||
| Other noncurrent assets | 10,338 | 10,297 | 533 | 521 | 1 | 2 | 416 | 417 | 11,288 | 11,237 | ||||||||||||||||||||||
| Total Assets | $69,576 | $69,316 | $4,552 | $4,420 | $373 | $488 | $240 | $379 | $74,741 | $74,603 | ||||||||||||||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||||||||||
| Current liabilities | $4,705 | $5,944 | $339 | $396 | $2 | $18 | $240 | $256 | $5,286 | $6,614 | ||||||||||||||||||||||
| Noncurrent liabilities | 17,364 | 17,275 | 1,273 | 1,242 | 28 | (61) | (360) | (208) | 18,305 | 18,248 | ||||||||||||||||||||||
| Long-term debt | 24,063 | 24,060 | 1,491 | 1,491 | — | — | — | — | 25,554 | 25,551 | ||||||||||||||||||||||
| Equity | 23,444 | 22,037 | 1,449 | 1,291 | 343 | 531 | 360 | 331 | 25,596 | 24,190 | ||||||||||||||||||||||
| Total Liabilities and Equity | $69,576 | $69,316 | $4,552 | $4,420 | $373 | $488 | $240 | $379 | $74,741 | $74,603 | ||||||||||||||||||||||
(a) Other includes the parent company, Con Edison’s tax equity investments, consolidation adjustments and Broken Bow II, the deferred project that was classified as held for sale at December 31, 2024, with the sale and transfer completed in January 2025. See Note Q to the First Quarter Financial Statements.
(b) Represents the consolidated results of operations of Con Edison and its businesses.
CECONY
Current assets at March 31, 2026 were $439 million lower than at December 31, 2025. The change in current assets primarily reflects a decrease in cash and temporary cash investments ($1,517 million) offset in part by increases in prepayments ($693 million), regulatory assets ($262 million), and accounts receivable from affiliated companies ($142 million).
Net plant at March 31, 2026 was $656 million higher than at December 31, 2025. The change in net plant primarily reflects an increase in electric ($571 million), gas ($94 million), steam ($16 million), general ($49 million) plant balances and increase in construction work in progress ($25 million), offset by an increase in accumulated depreciation ($99 million).
Current liabilities at March 31, 2026 were $1,239 million lower than at December 31, 2025. The change in current liabilities primarily reflects a decrease in notes payable ($647 million) and the repayment of a term loan ($500 million). See Note D to the First Quarter Financial Statements.
Noncurrent liabilities at March 31, 2026 were $89 million higher than at December 31, 2025. The change in noncurrent liabilities primarily reflects increases in deferred income taxes and unamortized investment tax credits ($439 million) and pensions and retiree benefits ($17 million) offset in part by decreases in net unbilled revenue deferrals ($174 million), pension and other postretirement employee benefit deferrals ($70 million), unrecognized other postretirement benefit cost ($63 million), late payment charge deferral ($50 million) and storm reserve costs ($8 million). See Note B and Note E to the First Quarter Financial Statements.
Equity at March 31, 2026 was $1,407 million higher than at December 31, 2025. The change in equity primarily reflects net income for the three months ended March 31, 2026 ($733 million), capital contributions from Con Edison ($981 million) in 2026 and a change in stock awards ($2 million), offset in part by common stock dividends to Con Edison ($309 million) in 2026.
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O&R
Current assets at March 31, 2026 were $76 million higher than at December 31, 2025. The change in current assets primarily reflects an increase in customer accounts receivable, net of allowance for uncollectible accounts ($42 million) (see "Aged Accounts Receivable Balances,” above) and cash and temporary cash investments ($29 million).
Net plant at March 31, 2026 was $44 million higher than at December 31, 2025. The change in net plant primarily reflects an increase in electric ($65 million), gas ($39 million) and general ($3 million) plant balances, offset in part by a decrease in construction work in progress ($44 million) and an increase in accumulated depreciation ($19 million).
Other noncurrent assets at March 31, 2026 were $12 million higher than at December 31, 2025. The change in other noncurrent assets primarily reflects an increase in regulatory assets ($12 million).
Current liabilities at March 31, 2026 were $57 million lower than at December 31, 2025. The change in current liabilities primarily reflects a decrease in accounts payable ($63 million), notes payable ($20 million) and accounts payable to affiliated companies ($12 million), offset in part by increase in regulatory liabilities ($42 million).
Noncurrent liabilities at March 31, 2026 were $31 million higher than at December 31, 2025. The change in noncurrent liabilities primarily reflects an increase in deferred income taxes and unamortized investment tax credits ($16 million), regulatory liabilities ($8 million), and other deferred credits and noncurrent liabilities ($8 million).
Equity at March 31, 2026 was $158 million higher than at December 31, 2025. The change in equity primarily reflects net income for the three months ended March 31, 2026 ($52 million) and capital contributions from Con Edison ($125 million) in 2026, offset in part by common stock dividends to Con Edison ($18 million) in 2026 and a decrease in other comprehensive income ($1 million).
Con Edison Transmission
Current assets at March 31, 2026 were $37 million higher than at December 31, 2025. The increase in current assets primarily reflects higher cash and temporary investments ($6 million) and tax receivable associated with the sale of Con Edison Transmission's equity interest in MVP ($31 million).
Investments at March 31, 2026 were $151 million lower than at December 31, 2025. The decrease in investments primarily reflects the sale of the equity interest in MVP ($168 million) offset in part by additional investment in and earnings from New York Transco ($26 million).
Current liabilities March 31, 2026 were $16 million lower than at December 31, 2025. The decrease in current liabilities primarily reflects transaction costs associated with the sale of the equity interest in MVP that were settled in January 2026 ($16 million).
Noncurrent liabilities at March 31, 2026 were $89 million higher than at December 31, 2025. The change in noncurrent liabilities primarily reflects the increase in accumulated deferred income taxes ($78 million) and reversal of the regulatory asset for future income taxes ($11 million) related to the sale of the equity interest in MVP.
Equity at March 31, 2026 was $188 million lower than at December 31, 2025. The change in equity primarily reflects net income for the three months ended March 31, 2026 ($143 million), offset in part by common stock dividends to Con Edison ($331 million).
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Con Edison Transmission
The following table presents Con Edison Transmission's ownership interests in New York Transco's electric transmission projects.
| Ownership Interest | In-Service Date/Anticipated | Base Return on Common Equity (ROE) | Common Equity Ratio | |||||||||||||||||
Transmission Owner Transmission Solutions (TOTS) (a) | 45.7% | 2016 | 9.99% plus 0.50% = 10.49% | 54% | ||||||||||||||||
New York Energy Solution (NYES) (b) | 45.7% | 2023/2025 | 9.99% plus 0.50% to 1.00% = 10.49% to 10.89% (c) | 54% | ||||||||||||||||
Propel NY Energy (d) | 41.7% of New York Transco's share | 2030 | 10.3% plus 1% = 11.3% | 53% | ||||||||||||||||
(a)TOTS is a group of three electric power bulk transmission projects ($217 million total cost) constructed on the New York bulk transmission system to increase transfer capability between upstate and downstate New York.
(b)The NYES project was constructed to relieve transmission congestion between upstate and downstate (estimated cost of approximately $800 million).
(c)Includes a cost containment reduction.
(d)Propel NY Energy, a project that is under development jointly with the NYPA, is 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. New York Transco’s share of the estimated cost of the Propel NY Energy project is $2,200 million, excluding interconnection costs and the cost of projects expected to be built by local transmission owners, including CECONY. The siting, construction and operation of the project will require approvals and permits from the appropriate governmental agencies and authorities, including the NYSPSC.
Con Edison Transmission owns an interest of approximately 71.2 percent in Honeoye, a company that operates a gas storage facility in upstate New York and in which CECONY owns the remaining interest. In April 2026, CECONY and Con Edison Transmission entered into an agreement to sell their interests in Honeoye for $5 million in aggregate, of which approximately $1.5 million was attributed to CECONY, before certain closing adjustments and expenses. The closing is expected to occur following approval from the NYSPSC.
During the first quarter of 2026, Con Edison Transmission completed the sale of its approximately 6.6 percent equity interest in MVP to the two founding members of MVP for total aggregate consideration of $357.5 million, before certain closing adjustments and expenses. See "Investment in Mountain Valley Pipeline, LLC (MVP)" in Note A.
Environmental Matters
Electric Vehicles
In March 2026, the NYSDPS issued a notice to New York utilities, including CECONY and O&R, alleging deficiencies in data collection and reporting for the electric vehicle light-duty make ready program. The Utilities are reviewing the matter and engaging with the NYSDPS but are unable to predict the outcome or potential impact, which could include the NYSPSC initiating an enforcement action. Also in March 2026, the NYSPSC directed New York utilities, including CECONY and O&R, to end the level 2 charger component of the electric vehicle program because of slower than expected electric vehicle adoption and to pause the direct current fast charger element of the program until they meet certain data collection requirements.
Energy Storage
In April 2026, the NYSPSC issued an order that approved modifications to New York utilities’ portfolio of Dynamic Load Management (DLM) programs and updated reporting requirements. The order authorized CECONY to expand its portfolio of DLM programs to include a Bring Your Own Battery (BYOB) program that enables customer-sited energy storage of less than 50 kW to participate in demand response and receive incentives for supporting the energy system during periods of high demand. The program is intended to reduce demand on the distribution system and improve reliability on high-demand days. CECONY will implement the BYOB program and file the associated tariff changes in accordance with the NYSPSC’s order.
Financial and Commodity Market Risks
The Companies are subject to various risks and uncertainties associated with financial and commodity markets. The most significant market risks include interest rate risk, commodity price risk and investment risk.
Interest Rate Risk
The Companies' interest rate risk primarily relates to new debt financing needed to fund capital requirements, including the capital expenditures of the Utilities and maturing debt securities, and variable-rate debt. Con Edison
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and its subsidiaries manage interest rate risk through the issuance of mostly fixed-rate debt with varying maturities and through opportunistic refinancing of debt. Con Edison and CECONY estimate that at March 31, 2026, a 10 percent increase in interest rates applicable to its variable rate debt would result in an increase in annual interest expense of $5 million and $4 million, respectively. Under CECONY’s current electric, gas and steam rate plans, variations in actual variable rate tax-exempt debt interest expense, including costs associated with the refinancing of the variable rate tax-exempt debt, are reconciled to levels reflected in rates.
Higher interest rates have resulted in increased interest expense on commercial paper, variable-rate debt and long-term debt issuances.
Commodity Price Risk
Con Edison’s commodity price risk primarily relates to the purchase and sale of electricity, gas and related derivative instruments. The Utilities apply risk management strategies to mitigate their related exposures. See Note N to the First Quarter Financial Statements.
Con Edison estimates that, as of March 31, 2026, a 10 percent decline in market prices would result in a decline in fair value of $174 million for the derivative instruments used by the Utilities to hedge purchases of electricity and gas, of which $159 million is for CECONY and $15 million is for O&R. As of March 31, 2025, Con Edison estimated that a 10 percent decline in market prices would result in a decline in fair value of $137 million for the derivative instruments used by the Utilities to hedge purchases of electricity and gas, of which $125 million is for CECONY and $12 million is for O&R. Con Edison expects that any such change in fair value would be largely offset by directionally opposite changes in the cost of the electricity and gas purchased.
The Utilities do not make any margin or profit on the electricity or gas they sell. In accordance with provisions approved by state regulators, the Utilities generally recover from full-service customers the costs they incur for energy purchased for those customers, including gains and losses on certain derivative instruments used to hedge energy purchased and related costs. However, increases in electric and gas commodity prices may contribute to a slower recovery of cash from outstanding customer accounts receivable balances. See “Electric Supply” and “Aged Accounts Receivable Balances,” above.
Investment Risk
The Companies’ investment risk relates to the investment of plan assets for their pension and other postretirement benefit plans. Con Edison's investment risk also relates to the investments of Con Edison Transmission that are accounted for under the equity method. See "Investments" in Note A to the First Quarter Financial Statements.
The Companies’ current investment policy for pension plan assets includes investment targets of 20 to 24 percent equity securities, 55 to 65 percent debt securities and 14 to 22 percent alternatives. At March 31, 2026, the pension plan investments consisted of 21 percent equity securities, 60 percent debt securities and 19 percent alternatives.
For the Utilities’ pension and other postretirement benefit plans, regulatory accounting treatment is generally applied in accordance with the accounting rules for regulated operations. In accordance with the Statement of Policy issued by the NYSPSC and its current electric, gas and steam rate plans, CECONY defers for payment to or recovery from customers the difference between the pension and other postretirement benefit expenses and the amounts for such expenses reflected in rates. O&R also defers such difference pursuant to its New York rate plans.
Material Contingencies
For information concerning potential liabilities arising from the Companies’ material contingencies, see "Other Regulatory Matters" in Note B and Notes G and H to the First Quarter Financial Statements.
Item 3: Quantitative and Qualitative Disclosures About Market Risk
For information about the Companies’ primary market risks associated with activities in derivative financial instruments, other financial instruments and derivative commodity instruments, see “Financial and Commodity Market Risks,” in Part I, Item 2 of this report, that is incorporated herein by reference.
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Item 4: Controls and Procedures
The Companies maintain disclosure controls and procedures designed to provide reasonable assurance that the information required to be disclosed in the reports that they submit to the Securities and Exchange Commission (SEC) is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Securities Exchange Act of 1934, as amended, is accumulated and communicated to the issuer’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. For each of the Companies, its management, with the participation of its principal executive officer and principal financial officer, has evaluated its disclosure controls and procedures as of the end of the period covered by this report and, based on such evaluation, has concluded that the controls and procedures are effective to provide such reasonable assurance. Reasonable assurance is not absolute assurance, however, and there can be no assurance that any design of controls or procedures would be effective under all potential future conditions, regardless of how remote.
There was no change in the Companies’ internal control over financial reporting that occurred during the Companies’ most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Companies’ internal control over financial reporting.
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Part II Other Information
Item 1: Legal Proceedings
For information about certain legal proceedings affecting the Companies, see "Other Regulatory Matters" in Note B and Notes G and H to the financial statements in Part I, Item 1 of this report, that is incorporated herein by reference.
Item 1A: Risk Factors
There were no material changes in the Companies’ risk factors compared to those disclosed in Item 1A of the Form 10-K.
Item 5: Other Information
During the three months ended March 31, 2026, no director or officer (as defined in Rule 16a-1(f) of the Securities Exchange Act of 1934, as amended) adopted terminated
Item 6: Exhibits
Con Edison
| Exhibit 10.1 | Credit Agreement, dated as of March 11, 2026, among Con Edison, CECONY and O&R, as Borrowers, the lenders party thereto and Bank of America, N.A., as Administrative Agent. (Designated in Con Edison’s Current Report on Form 8-K dated March 11, 2026 (File No. 1-14514) as Exhibit 10) | ||||
| Exhibit 31.1.1 | Rule 13a-14(a)/15d-14(a) Certifications – Chief Executive Officer. | ||||
| Exhibit 31.1.2 | Rule 13a-14(a)/15d-14(a) Certifications – Chief Financial Officer. | ||||
| Exhibit 32.1.1 | Section 1350 Certifications – Chief Executive Officer. | ||||
| Exhibit 32.1.2 | Section 1350 Certifications – Chief Financial Officer. | ||||
| Exhibit 101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | ||||
| Exhibit 101.SCH | XBRL Taxonomy Extension Schema. | ||||
| Exhibit 101.CAL | XBRL Taxonomy Extension Calculation Linkbase. | ||||
| Exhibit 101.DEF | XBRL Taxonomy Extension Definition Linkbase. | ||||
| Exhibit 101.LAB | XBRL Taxonomy Extension Label Linkbase. | ||||
| Exhibit 101.PRE | XBRL Taxonomy Extension Presentation Linkbase. | ||||
| Exhibit 104 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document. | ||||
CECONY
| Exhibit 10.2 | Employment Offer Letter between CECONY and Kamran Ziaee, dated September 30, 2024. | ||||
| Exhibit 31.2.1 | Rule 13a-14(a)/15d-14(a) Certifications – Chief Executive Officer. | ||||
| Exhibit 31.2.2 | Rule 13a-14(a)/15d-14(a) Certifications – Chief Financial Officer. | ||||
| Exhibit 32.2.1 | Section 1350 Certifications – Chief Executive Officer. | ||||
| Exhibit 32.2.2 | Section 1350 Certifications – Chief Financial Officer. | ||||
| Exhibit 101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | ||||
| Exhibit 101.SCH | XBRL Taxonomy Extension Schema. | ||||
| Exhibit 101.CAL | XBRL Taxonomy Extension Calculation Linkbase. | ||||
| Exhibit 101.DEF | XBRL Taxonomy Extension Definition Linkbase. | ||||
| Exhibit 101.LAB | XBRL Taxonomy Extension Label Linkbase. | ||||
| Exhibit 101.PRE | XBRL Taxonomy Extension Presentation Linkbase. | ||||
| Exhibit 104 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document. | ||||
Pursuant to Item 601(b)(4)(iii)(A) of Regulation S-K, instruments defining the rights of holders of long-term debt of Con Edison’s subsidiaries other than CECONY, the total amount of which does not exceed ten percent of the total assets of Con Edison and its subsidiaries on a consolidated basis, are not filed as exhibits to Con Edison’s Form 10-K or Form 10-Q. Con Edison agrees to furnish to the SEC upon request a copy of any such instrument.
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Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, each Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| Consolidated Edison, Inc. | ||||||||
| Consolidated Edison Company of New York, Inc. | ||||||||
| Date: May 7, 2026 | By | /s/ Kirkland B. Andrews | ||||||
| Kirkland B. Andrews Senior Vice President, Chief Financial Officer and Duly Authorized Officer | ||||||||
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