Con Edison proposes 3-year NY steam rate plan

Q: What did CON EDISON (ED) announce regarding CECONY’s steam rates?

CECONY, a subsidiary of CONSOLIDATED EDISON INC, entered into a joint proposal with New York regulators for a three-year steam rate plan from November 1, 2026 through October 31, 2029, covering base rate changes, capital spending, returns and performance-based adjustments.

Q: What return on equity is included in the CECONY steam proposal for ED?

The joint proposal includes an authorized return on common equity of 9.5%. Most earnings above an annual earnings threshold of 10% would be applied to reduce regulatory assets for environmental remediation and other costs accumulated in the rate year.

Q: What performance and earnings mechanisms affect ED’s CECONY steam revenues?

The plan includes potential negative revenue adjustments of $4.3–$4.7 million per year if certain service, reliability, safety and other targets are not met, plus an earnings sharing mechanism on earnings above a 10% threshold, which are used to reduce regulatory assets.

Q: Is the CECONY steam rate plan for ED already approved?

No. The joint proposal for CECONY’s steam rate plan is subject to approval by the New York State Public Service Commission, so its rates, returns, and mechanisms will take effect only if and as approved.

Consolidated Edison’s CECONY unit agreed to a three-year steam rate proposal with defined base rate hikes, capital spending and a 9.5% allowed ROE, pending state approval.

Filing Impact

(High)

Filing Sentiment

(Neutral)

Form Type

8-K

Rhea-AI Filing Summary

CONSOLIDATED EDISON INC (ED), through its subsidiary Consolidated Edison Company of New York, Inc. (CECONY), entered into a joint proposal with New York regulators and other parties for a three-year steam rate plan covering November 1, 2026 through October 31, 2029, subject to New York State Public Service Commission approval.

The proposal provides for annual base rate changes of $13 million in year 1, $42 million in year 2 and $39 million in year 3, and annual steam capital expenditures of $143 million, $127 million and $126 million, respectively. It assumes average rate base of $2.118 billion, $2.234 billion and $2.311 billion, with after‑tax weighted average cost of capital rising from 7.07% to 7.19%.

The plan continues weather normalization and recovery of purchased power and fuel costs, includes reconciliations for pensions, taxes and other items, and sets an authorized return on equity of 9.5% with an earnings sharing mechanism above a 10% earnings threshold, as well as potential negative revenue adjustments of up to $4.3–$4.7 million per year if certain performance targets are not met.

Positive

Three-year steam rate plan provides visibility on base rate changes, capital spending and returns for November 2026–October 2029, subject to New York State Public Service Commission approval.
The plan includes an authorized 9.5% return on common equity and after-tax weighted average cost of capital rising from 7.07% to 7.19%, supporting regulated earnings on an average rate base over $2.1–$2.3 billion.
Continuation of weather normalization and recovery of purchased power and fuel costs helps stabilize steam revenues and margins against usage and commodity price fluctuations.

Negative

The proposal includes negative revenue adjustments of $4.3–$4.7 million annually if service, reliability, safety and other performance targets are not met, adding downside risk to steam revenues.
An earnings sharing mechanism applies most earnings above a 10% threshold to reduce regulatory assets, limiting the portion of outperformance that can be retained as shareholder earnings.
All terms remain subject to New York State Public Service Commission approval, so the rate plan and associated financial parameters are not yet final.

Insights

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8-K Event Classification

Item 8.01 — Other Events

1 item

Item 8.01 Other Events Other

Voluntary disclosure of events the company deems important to shareholders but not covered by other items.

Key Figures

Base rate change Year 1: $13 million Base rate change Years 2 and 3: $42 million (Year 2), $39 million (Year 3) Steam capital expenditures: $143 million (Yr 1), $127 million (Yr 2), $126 million (Yr 3) +5 more

8 metrics

Base rate change Year 1 $13 million Proposed CECONY steam rate plan, year 1 of November 2026–October 2029 period

Base rate change Years 2 and 3 $42 million (Year 2), $39 million (Year 3) Proposed CECONY steam rate plan

Steam capital expenditures $143 million (Yr 1), $127 million (Yr 2), $126 million (Yr 3) Planned CECONY steam capital expenditures under joint proposal

Average rate base $2.118 billion (Yr 1), $2.234 billion (Yr 2), $2.311 billion (Yr 3) CECONY steam average rate base under proposed plan

Weighted average cost of capital (after-tax) 7.07% (Yr 1), 7.14% (Yr 2), 7.19% (Yr 3) CECONY steam under proposed rate plan

Authorized return on common equity 9.5% CECONY steam joint proposal

Negative revenue adjustments $4.3 million (Yr 1), $4.5 million (Yr 2), $4.7 million (Yr 3) Potential charges if performance targets are not met

Common equity ratio 48% Capital structure assumption in CECONY steam plan

Key Terms

Weather Normalization Adjustment, Negative revenue adjustments, regulatory assets, Average rate base, +1 more

5 terms

Weather Normalization Adjustment financial

"Continuation of a weather normalization adjustment to reflect normal weather"

Negative revenue adjustments financial

"Negative revenue adjustments | | Potential charges if certain performance targets"

regulatory assets financial

"applied to reduce regulatory assets for environmental remediation and other costs"

Costs or expenses that a regulated company is allowed by a regulator to recover from customers in future rates, recorded on the balance sheet as assets because the company expects to collect them later. Think of it like an IOU the regulator permits the company to collect from future bills; it matters to investors because it affects reported assets, future cash flow timing, and the risk that some or all of those costs may not be approved for recovery.

Average rate base financial

"Average rate base | | Yr. 1 – $2,118 million Yr. 2 – $2,234 million"

FAQ

What did CON EDISON (ED) announce regarding CECONY’s steam rates?

CECONY, a subsidiary of CONSOLIDATED EDISON INC, entered into a joint proposal with New York regulators for a three-year steam rate plan from November 1, 2026 through October 31, 2029, covering base rate changes, capital spending, returns and performance-based adjustments.

What base rate changes are proposed in the new CECONY steam rate plan for ED?

The proposed CECONY steam plan includes base rate changes of $13 million in year 1, $42 million in year 2 and $39 million in year 3, for the period November 2026 through October 2029, subject to New York State Public Service Commission approval.

What return on equity is included in the CECONY steam proposal for ED?

The joint proposal includes an authorized return on common equity of 9.5%. Most earnings above an annual earnings threshold of 10% would be applied to reduce regulatory assets for environmental remediation and other costs accumulated in the rate year.

How much capital spending is planned under the CECONY steam rate proposal?

The CECONY steam joint proposal sets annual capital expenditures of $143 million in year 1, $127 million in year 2 and $126 million in year 3, supporting the steam system over the November 2026–October 2029 rate period.

What performance and earnings mechanisms affect ED’s CECONY steam revenues?

The plan includes potential negative revenue adjustments of $4.3–$4.7 million per year if certain service, reliability, safety and other targets are not met, plus an earnings sharing mechanism on earnings above a 10% threshold, which are used to reduce regulatory assets.

Is the CECONY steam rate plan for ED already approved?

No. The joint proposal for CECONY’s steam rate plan is subject to approval by the New York State Public Service Commission, so its rates, returns, and mechanisms will take effect only if and as approved.

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Available on EDGAR 09/04/2026 - 04:16 PM Accepted by SEC EDGAR 09/04/2026 - 04:15 PM

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM

8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of The Securities Exchange

t of 1934

Date of Report (Date of earliest event reported): September 4, 2026

Consolidated Edison, Inc

(Exact name of registrant as specified in its charter)


New York	1-14514	13-3965100
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)


4 Irving Place, New York, New York		10003
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code:

(212) 460-4600

Consolidated Edison Company of New York, Inc.

(Exact name of registrant as specified in its charter)


New York	1-1217	13-5009340
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)


4 Irving Place, New York, New York		10003
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code:

(212) 460-4600

Check the appropriate box below if the Form

8-K

filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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.,	ED	New York Stock Exchange
Common Shares ($.10 par value)

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule

12b-2

of the Securities Exchange Act of 1934

(§240.12b-2

of this chapter).

Emerging growth company ☐

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. ☐

INFORMATION TO BE INCLUDED IN THE REPORT

Item 8.01 Other Events

On September 4, 2026, Consolidated Edison Company of New York, Inc. (CECONY), the New York State Department of Public Service (NYSDPS) and other parties entered into a joint proposal for a CECONY steam rate plan for the three-year period November 1, 2026 through October 31, 2029 (the Joint Proposal). The Joint Proposal is subject to approval by the New York State Public Service Commission (NYSPSC). The following table contains a summary of the Joint Proposal.


CECONY – Steam
Effective period		November 2026 – October 2029
Base rate changes		Yr. 1 – $13 million (a) Yr. 2 – $42 million (a) Yr. 3 – $39 million (a)
Capital expenditures		Yr. 1 – $ 143 million Yr. 2 – $ 127 million Yr. 3 – $ 126 million
Amortizations to income of net regulatory assets		Yr. 1 – $ 8 million (b) Yr. 2 – $ 8 million (b) Yr. 3 – $ 8 million (b)
Weather Normalization Adjustment		Continuation of a weather normalization adjustment to reflect normal weather conditions during the heating season.
Recoverable energy costs		Continuation of current rate recovery of purchased power and fuel costs.
Negative revenue adjustments		Potential charges if certain performance targets relating to service, reliability, safety and other matters are not met: Yr. 1 – $4.3 million Yr. 2 – $4.5 million Yr. 3 – $4.7 million
Regulatory reconciliations (c)		Reconciliation of expenses for pension and other postretirement benefits, variable-rate debt, property taxes (d), municipal infrastructure support costs (e) and environmental site investigation and remediation to amounts reflected in rates (f).
Net utility plant reconciliations		Yr. 1 – $2,147 million Yr. 2 – $2,165 million Yr. 3 – $2,145 million
Average rate base		Yr. 1 – $2,118 million Yr. 2 – $2,234 million Yr. 3 – $2,311 million
Weighted average cost of capital (after-tax)		Yr. 1 – 7.07 percent Yr. 2 – 7.14 percent Yr. 3 – 7.19 percent
Authorized return on common equity		9.5 percent
Earnings sharing		Most earnings above an annual earnings threshold of 10 percent are to be applied to reduce regulatory assets for environmental remediation and other costs accumulated in the rate year.
Cost of long-term debt		Yr. 1 – 4.86 percent Yr. 2 – 5.00 percent Yr. 3 – 5.10 percent
Common equity ratio		48 percent

(a)

The base rate increases shown above will be implemented on a shaped bill impact basis resulting in a consistent total bill impact of 3.5% each year with corresponding base rate increases of $26.6 million in Yr. 1; $27.5 million in Yr. 2; and $28.5 million in Yr. 3. New rates will be effective as of November 1, 2026. CECONY will begin billing customers at the new shaped rate once the Joint Proposal is approved by the NYSPSC. Any shortfall in revenues due to the timing of billing to customers will be collected through a surcharge.

(b)	Amounts reflect amortization of the protected portion of the regulatory liability for excess deferred income taxes allocable to CECONY’s steam customers over the remaining lives of the related assets ($6 million in Yr. 1; $7 million in Yr. 2; and $7 million in Yr. 3).

(c)	$0.5 million in annual steam revenue requirement ($1.5 million over three years) will be recovered through a rate adjustment mechanism, subject to refund to customers relating to the NYSDPS’ review of CECONY’s steam main welds.

(d)

If the level of actual expense for property taxes, excluding the effect of property tax refunds, varies in any rate year from the projected level provided in rates, the full amount of the variation will be recovered from or credited to customers via surcharge/surcredit. Surcharge recoveries will be subject to an annual cap that produces no more than a half percent (0.5 percent) total customer bill impact (estimated to be $3.8 million, $3.9 million, $4.0 million for Yr. 1, Yr. 2 and Yr. 3, respectively). Amounts in excess of the annual surcharge cap in a specific year may be rolled forward for recovery and will count towards the following year’s surcharge cap. Amounts in excess of the surcharge cap will be deferred as a regulatory asset for recovery in CECONY’s next steam base rate case.

(e)

In general, if actual expenses for municipal infrastructure support (other than company labor) are below the amounts reflected in rates, CECONY will defer the difference for credit to customers, and if the actual expenses are above the amount reflected in rates, CECONY will defer for recovery from customers 80 percent of the difference subject to a maximum deferral, subject to certain conditions, of 30 percent of the amount reflected in the rate plan.

(f)	In addition, the NYSDPS continues its focused operations audit to investigate CECONY’s income tax accounting. Any adjustment to CECONY’s income tax accounting ordered by the NYSPSC is expected to be refunded to or collected from customers, as determined by the NYSPSC.

The information in this report includes 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 including, but not limited to, those identified in reports each of Consolidated Edison, Inc. and CECONY has filed with the Securities and Exchange Commission.

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 hereunto duly authorized.


CONSOLIDATED EDISON, INC.
CONSOLIDATED EDISON COMPANY OF NEW YORK, INC.

By:		/s/ Joseph Miller
		Joseph Miller
		Vice President, Controller and Chief Accounting Officer

Date: September 4, 2026

Source: View Original Filing on SEC EDGAR

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