Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

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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 Second 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 Second 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, 2023 (File Nos.1-14514 and 1-01217, the Form 10-K) and the MD&A in Part 1, Item 2 of the Companies' combined Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2024 (File Nos. 1-14514 and 1-01217).

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. 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, through its subsidiaries, invests in electric transmission projects supporting Con Edison's effort to transition to clean, renewable energy and manages, through joint ventures, both electric and gas assets while seeking to develop electric transmission projects that will bring clean, renewable electricity to customers focusing on New York and the Northeast. See "Investments" in Note A to the Second Quarter Financial Statements. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note Q and Note R to the Second Quarter Financial Statements.

Con Edison seeks to provide shareholder value through continued dividend growth, supported by earnings growth in regulated utilities and contracted electric and gas 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 Companies’ material contingencies described in Notes B, G and H to the Second 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.

Clean Energy Goals

The success of the Companies’ efforts to meet federal, state and city 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 federal, state and local 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 of climate change 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.

Aged Accounts Receivable Balances

At June 30, 2024, CECONY’s and O&R’s customer accounts receivables balances of $2,742 million and $117 million, respectively, included aged accounts receivables (balances outstanding in excess of 60 days) of $1,553 million and $37 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 service disconnections during the COVID-19 pandemic. CECONY’s rate plans include reconciliation of late payment charges (from January 1, 2023 through December 31, 2025 for electric and gas and from January 1, 2020 through October 31, 2026 for steam) and write-offs of customer accounts receivable balances (from January 1, 2020 through December 31, 2025 for electric and gas and from January 1, 2020 through October 31, 2026 for steam) to amounts reflected in rates, with recovery/refund from or to customers via surcharge/sur-credit. CECONY's surcharge recoveries for late payment charges and write-offs of accounts receivable balances will, collectively, be subject to separate annual caps for electric and gas that produce no more than a half percent (0.5 percent) total customer bill impact per commodity (estimated for electric to be $57.3 million, $60.3 million, $62.6 million for 2023, 2024 and 2025, respectively, and for gas to be $14.8 million, $15.9 million and $16.8 million for 2023, 2024 and 2025, respectively). CECONY's surcharge recoveries for late payment charges and write-offs of accounts receivables for steam will each be subject to an annual cap that produces no more than half percent (0.5 percent) total customer bill impact (estimated to be $2.5 million, $3.0 million and $3.5 million for 2024, 2025 and 2026, respectively). Amounts in excess of the surcharge caps will be deferred as a regulatory asset for recovery in CECONY’s next base rate cases. O&R’s 2022 - 2024 rate plans include reconciliation of late payment charges to amounts reflected in rates for years 2022 through 2024, with full recovery/refund via surcharge/sur-credit once the annual variance equals or exceeds 5 basis points of return on equity and reconciliation of write-offs of customer accounts receivable balances to amounts reflected in rates from January 1, 2020 through December 31, 2024, with full recovery/refund via surcharge/sur-credit once the annual variance equals or exceeds 5 basis points of return on equity. Although these regulatory mechanisms are in place, a continued slower recovery in cash of outstanding customer accounts receivable balances has impacted the Companies’ liquidity and may continue to impact liquidity. The Utilities have resumed collection activities, including write-offs of uncollectible customer accounts receivable balances. See “Liquidity and Capital Resources” and “Capital Requirements and Resources,” below.

In May 2024, the NYSPSC issued an order implementing amendments to certain provisions of the New York State Public Service Law that require utilities, including CECONY and O&R, to bill most residential and small non-residential customers within three months instead of six months of the end of their service period, to provide 13 months of usage information on all electric, gas and steam bills and to make available two years of historical billing information upon customer request. The NYSPSC also ordered the NYSDPS to further consider regulations that would expand the new billing requirements to large non-residential customers and to prohibit utilities, including CECONY and O&R, from recovering revenue lost due to untimely billing.

Con Edison Transmission

Con Edison Transmission, through its New York Transco partnership and jointly with the New York Power Authority, is developing the Propel NY Energy transmission project that will deliver offshore wind energy from Long Island to New York City, Westchester County and the rest of New York State's high voltage power grid. Con Edison Transmission is also participating in competitive solicitations to develop additional electric projects, including a proposal submitted in April 2024 with another entity to build transmission infrastructure that will carry offshore wind power to New Jersey's electric grid and multiple proposals submitted in June 2024 through its New York Transco partnership to integrate offshore wind into New York City's energy grid. 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.

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.

In June 2024, CECONY decreased its five-year forecast of average annual growth of the firm peak gas demand in its service area at design conditions from approximately 0.8 percent (for 2024 to 2028) to approximately 0.1 percent (for 2025 to 2029). The decrease is reflective of and aligned with state and local clean energy future policies driving the phase-out of the use of natural gas.

Steam

CECONY operates the largest steam distribution system in the United States by producing and delivering approximately 15,444 MMlb of steam annually to approximately 1,520 customers in parts of Manhattan.

In June 2024, CECONY increased its five-year forecast of the average annual peak steam demand in its service area at design conditions from a 0.5 percent decrease (for 2024 to 2028) to a 0.4 percent decrease (for 2025 to 2029). The increase is reflective of and aligned with local policies driving the phase-out of the use of natural gas along with an anticipated increase in oil-to-steam customer conversions.

Collective Bargaining Agreement

In June 2024, CECONY reached a four-year collective bargaining agreement with its largest union covering approximately 7,300 employees (which is subject to ratification by the employees).

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.

In June 2024, O&R increased its five-year forecast of the average annual firm peak gas demand in its service area at design conditions from a 0.2 percent decrease (for 2024 to 2028) to a 0.1 percent decrease (for 2025 to 2029). This change is reflective of and aligned with state clean energy future policies driving the phase-out of the use of natural gas.

Certain financial data of Con Edison’s businesses are presented below:


	For the Three Months Ended June 30, 2024						For the Six Months Ended June 30, 2024						At June 30, 2024
(Millions of Dollars, except percentages)	Operating Revenues			Net Income for Common Stock			Operating Revenues			Net Income for Common Stock			Assets
CECONY	$2,996	93	%	$186	92	%	$6,967	93	%	$880	95	%	$63,075	92	%
O&R	224	7		3	1		527	7		40	4		3,810	6
Total Utilities	$3,220	100	%	$189	93	%	$7,494	100	%	$920	99	%	$66,885	98	%
Con Edison Transmission	1	—		13	7		2	—		24	3		441	1
Other (a)	(1)	—		—	—		(1)	—		(22)	(2)		594	1
Total Con Edison	$3,220	100	%	$202	100	%	$7,495	100	%	$922	100	%	$67,920	100	%

(a)Other includes the parent company, Con Edison’s tax equity investments, the deferred project held for sale and consolidation adjustments. Net income for common stock for the six months ended June 30, 2024 includes $(22) million (after-tax) for an adjustment related to the sale of the Clean Energy Businesses. See Note Q and Note R to the Second Quarter Financial Statements.

Inflation Reduction Act

On August 16, 2022, the Inflation Reduction Act of 2022 (the IRA) was signed into law and included a new 15 percent Corporate Alternative Minimum Tax (CAMT). Under the IRA, a corporation is subject to the CAMT if its average annual adjusted financial statement Income for the three taxable year period ending prior to the taxable year exceeds $1,000 million, and applies to tax years beginning after December 31, 2022. Con Edison and CECONY were not subject to the CAMT in 2023 and are subject to the CAMT beginning in 2024. The Companies are continuing to assess the impacts of the IRA on their financial statements and will update estimates based on future guidance to be issued by the Department of the Treasury.

New York Legislation

In April 2021, New York passed a law that increased the corporate franchise tax rate on business income from 6.5 percent to 7.25 percent, retroactive to January 1, 2021, for taxpayers with taxable income greater than $5 million. The law also reinstated the business capital tax at 0.1875 percent, not to exceed a maximum tax liability of $5 million per taxpayer. New York requires a corporate franchise taxpayer to calculate and pay the highest amount of tax under the three alternative methods: a tax on business income; a tax on business capital; or a fixed dollar minimum. The provisions to increase the corporate franchise tax rate and reinstate a capital tax were scheduled to expire after 2023. In May 2023, New York passed a law that extended the increase in the corporate franchise tax rate from 6.5 percent to 7.25 percent for an additional three years, through tax year 2026 and extended the business capital tax through tax year 2026. New York also passed a law establishing a permanent rate of 30 percent for the metropolitan transportation business tax surcharge. As a result of the sale of all of the stock of the Clean Energy Businesses in 2023, Con Edison’s New York State taxable income was higher than $5 million and it was subject to the higher 7.25 percent rate (9.425 percent with the surcharge rate) on its taxable income for tax year 2023, but is not expected to be subject to the higher rate in tax year 2024.

Results of Operations

Net income for common stock and earnings per share for the three and six months ended June 30, 2024 and 2023 were as follows:


	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2024	2023	2024	2023	2024	2023	2024	2023
(Millions of Dollars, except per share amounts)	Net Income for Common Stock		Earnings per Share		Net Income for Common Stock		Earnings per Share
CECONY	$186	$189	$0.54	$0.55	$880	$793	$2.55	$2.27
O&R	3	8	0.01	0.02	40	39	0.12	0.11
Clean Energy Businesses (a) (d)	—	—	—	—	—	22	—	0.06
Con Edison Transmission	13	4	0.04	0.01	24	6	0.07	0.02
Other (b)	—	25	(0.01)	0.07	(22)	798	(0.07)	2.28
Con Edison (c)	$202	$226	$0.58	$0.65	$922	$1,658	$2.67	$4.74

(a)Net income for common stock and earnings per share from the Clean Energy Businesses for the three and six months ended June 30, 2023 included $(9) million or $(0.03) a share net after-tax mark-to-market effects. Net income for common stock and earnings per share from the Clean Energy Businesses for the three and six months ended June 30, 2023 also included $2 million or $0.01 a share (after-tax) net of the effects of HLBV accounting for tax equity investments in certain renewable electric projects. Depreciation and amortization expenses on their assets of $31 million or $0.09 a share (after-tax) were not recorded for the three and six months ended June 30, 2023.

(b) Other includes the parent company, Con Edison’s tax equity investments, the deferred project held for sale and consolidation adjustments. Net income for common stock and earnings per share for the six months ended June 30, 2024 includes $(22) million (after-tax) or $(0.06) a share (after-tax) for an adjustment related to the sale of all of the stock of the Clean Energy Businesses. See Note Q and Note R to the Second Quarter Financial Statements.

Net income for common stock and earnings per share for the six months ended June 30, 2023 included an immaterial amount or $0.00 a share net of income tax impact on the net after-tax mark-to-market effects. Net income for common stock and earnings per share for the three and six months ended June 30, 2023 also included $(3) million or $(0.01) a share net of income tax impact on the effects of HLBV accounting for tax equity investments in certain renewable electric projects. Net income for common stock for the three and six months ended June 30, 2023 also included $(1) million or $0.00 a share and $(8) million and $(0.02) a share of transaction costs and other accruals, respectively, related to the sale of all of the stock of the Clean Energy Businesses (net of tax). Impact of the sale of the Clean Energy Businesses on the changes in state unitary tax apportionments (net of federal taxes) is $6 million or $0.02 per share and $(10) million or $(0.03) per share for the three and six months ended June 30, 2023, respectively. Depreciation and amortization expenses on the assets of the Clean Energy Businesses of $(3) million or $(0.01) a share (after-tax) were not recorded for the six months ended June 30, 2023. Net income for common stock and earnings per share for the six months ended June 30, 2023 included $13 million or $0.03 a share and $804 million (after-tax) or $2.30 a share (after-tax) for the gain on the sale of all of the stock of the Clean Energy Businesses. See Note Q and Note R to the Second Quarter Financial Statements.

(c) Earnings per share on a diluted basis were $0.58 a share and $0.65 a share for the three months ended June 30, 2024 and 2023, respectively and $2.66 a share and $4.72 a share for the six months ended June 30, 2024 and 2023, respectively.

(d) On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note Q and Note R to the Second Quarter Financial Statements.

The following tables present the estimated effect of major factors on earnings per share and net income for common stock for the three and six months ended June 30, 2024 as compared with the 2023 period.


Variation for the Three Months Ended June 30, 2024 vs. 2023
	Net Income for Common Stock (Net of Tax) (Millions of Dollars)	Earnings per Share
CECONY (a)
Higher electric rate base	$17	$0.05
New steam rate plan effective November 2023	12	0.03
Higher gas rate base	4	0.01
Change in incentives earned under the electric and gas earnings adjustment mechanisms	3	0.01






Impact of the NYSPSC order denying an April 2023 petition by CECONY that requested permission to capitalize costs to implement its new customer billing and information system	(37)	(0.11)
Higher health care costs	(7)	(0.02)





Other	5	0.02
Total CECONY	(3)	(0.01)
O&R (a)

Gas base rate increase	1	—


Higher storm-related costs	(4)	(0.01)
Other	(2)	—
Total O&R	(5)	(0.01)













Con Edison Transmission
Higher investment income and an income tax adjustment due to allowance for funds used during construction (AFUDC) from Mountain Valley Pipeline, LLC	7	0.02





Other	2	0.01

Total Con Edison Transmission	9	0.03
Other, including parent company expenses
HLBV effects	1	—
Gain and other impacts related to the sale of the Clean Energy Businesses	(18)	(0.05)
Lower interest income	(6)	(0.02)






Other	(2)	(0.01)
Total Other, including parent company expenses	(25)	(0.08)
Total Reported (GAAP basis)	$(24)	$(0.07)

a.Under the revenue decoupling mechanisms in the Utilities’ New York electric and gas rate plans and the weather-normalization clause applicable to their gas businesses, revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved. Effective November 1, 2023, revenues from CECONY’s steam sales are also subject to a weather normalization clause, as a result of which, delivery revenues reflect normal weather conditions during the heating season. In general, the Utilities recover on a current basis the fuel, gas purchased for resale and purchased power costs they incur in supplying energy to their full-service customers. Accordingly, such costs do not generally affect Con Edison’s results of operations.


Variation for the Six Months Ended June 30, 2024 vs. 2023
	Net Income for Common Stock (Net of Tax) (Millions of Dollars)	Earnings per Share
CECONY (a)
New steam rate plan effective November 2023	$59	$0.16
Higher electric rate base	32	0.09
Higher gas rate base	29	0.08

Change in incentives earned under the electric and gas earnings adjustment mechanisms	4	0.01

Impact of the NYSPSC order denying an April 2023 petition by CECONY that requested permission to capitalize costs to implement its new customer billing and information system	(37)	(0.11)









Accretive effect of share repurchase	—	0.04
Other	0	0.01
Total CECONY	87	0.28
O&R (a)
Electric base rate increase	7	0.02
Gas base rate increase	2	0.01
Other	(8)	(0.02)
Total O&R	1	0.01
Clean Energy Businesses (b)












Total Clean Energy Businesses	(22)	(0.06)
Con Edison Transmission
Higher investment income and an income tax adjustment due to AFUDC from Mountain Valley Pipeline, LLC	15	0.04



Other	3	0.01
Total Con Edison Transmission	18	0.05
Other, including parent company expenses
HLBV effects	3	0.01
Gain and other impacts related to the sale of the Clean Energy Businesses	(805)	(2.31)
Lower interest income	(14)	(0.04)
Other	(4)	(0.01)
Total Other, including parent company expenses	(820)	(2.35)
Total Reported (GAAP basis)	$(736)	$(2.07)

a.Under the revenue decoupling mechanisms in the Utilities’ New York electric and gas rate plans and the weather-normalization clause applicable to their gas businesses, revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved. In general, the Utilities recover on a current basis the fuel, gas purchased for resale and purchased power costs they incur in supplying energy to their full-service customers. Accordingly, such costs do not generally affect Con Edison’s results of operations.
b. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses.

The Companies’ other operations and maintenance expenses for the three and six months ended June 30, 2024 and 2023 were as follows:


	For the Three Months Ended June 30,		For the Six Months Ended June 30,
(Millions of Dollars)	2024	2023	2024	2023
CECONY
Operations	$497	$447	$985	$870
Pensions and other postretirement benefits	31	87	70	173
Health care and other benefits	47	35	88	72
Regulatory fees and assessments (a)	107	83	214	172
Other (b)	189	105	302	220
Total CECONY	$871	$757	$1,659	$1,507
O&R	94	90	191	187
Clean Energy Businesses (c)	—	—	—	47
Con Edison Transmission	3	3	6	6
Other (d)	(1)	(1)	—	(3)
Total other operations and maintenance expenses	$967	$849	$1,856	$1,744

(a)Includes Demand Side Management, System Benefit Charges and Public Service Law 18A assessments that are collected in revenues.

(b)Other includes the impact of the NYSPSC order denying an April 2023 petition by CECONY that requested permission to capitalize costs to implement its new customer billing and information system in 2024 ($51 million).

(c)On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note Q and Note R to the Second Quarter Financial Statements.

(d)Other includes the parent company, Con Edison’s tax equity investments, the deferred project held for sale and consolidation adjustments. See Note R to the Second Quarter Financial Statements.

A discussion of the results of operations by principal business segment for the three and six months ended June 30, 2024 and 2023 follows. For additional business segment financial information, see Note M to the Second Quarter Financial Statements.

The Companies’ results of operations for the three months ended June 30, 2024 and 2023 were as follows:


	CECONY		O&R		Con Edison Transmission		Other (a)		Con Edison (b)
(Millions of Dollars)	2024	2023	2024	2023		2024	2023	2024	2023	2024	2023
Operating revenues	$2,996	$2,744	$224	$200		$1	$1	$(1)	$(1)	$3,220	$2,944
Purchased power	498	452	58	43		—	—	—	—	556	495
Fuel	15	18	—	—		—	—	—	—	15	18
Gas purchased for resale	57	91	11	8		—	—	—	—	68	99
Other operations and maintenance	871	757	94	90		3	3	(1)	(1)	967	849
Depreciation and amortization	482	470	29	26		—	—	1	—	512	496
Taxes, other than income taxes	759	694	23	22		—	—	—	—	782	716
Gain (loss) on sale of the Clean Energy Businesses	—	—	—	—		—	—	—	13	—	13



Operating income (loss)	314	262	9	11		(2)	(2)	(1)	13	320	284
Other income (deductions)	142	184	8	12		11	8	(1)	3	160	207
Net interest expense	269	223	14	13		—	—	5	—	288	236
Income (loss) before income tax expense	187	223	3	10		9	6	(7)	16	192	255
Income tax expense	1	34	—	2		(4)	2	(7)	(9)	(10)	29
Net income (loss)	$186	$189	$3	$8		$13	$4	$—	$25	$202	$226

Net income (loss) for common stock	$186	$189	$3	$8		$13	$4	$—	$25	$202	$226

(a)Other includes the parent company, Con Edison’s tax equity investments, the deferred project held for sale and consolidation adjustments. See Note R to the Second Quarter Financial Statements.

(b)Represents the consolidated results of operations of Con Edison and its businesses.

CECONY


	For the Three Months Ended June 30, 2024				For the Three Months Ended June 30, 2023
(Millions of Dollars)	Electric	Gas	Steam	2024 Total	Electric	Gas	Steam	2023 Total	2024-2023 Variation
Operating revenues	$2,370	$538	$88	$2,996	$2,144	$531	$69	$2,744	$252
Purchased power	492	—	6	498	445	—	7	452	46
Fuel	11	—	4	15	18	—	—	18	(3)
Gas purchased for resale	—	57	—	57	—	91	—	91	(34)
Other operations and maintenance	671	147	53	871	569	132	56	757	114
Depreciation and amortization	345	112	25	482	339	106	25	470	12
Taxes, other than income taxes	579	137	43	759	541	119	34	694	65
Operating income	$272	$85	$(43)	$314	$232	$83	$(53)	$262	$52

Electric

CECONY’s results of electric operations for the three months ended June 30, 2024 compared with the 2023 period were as follows:


	For the Three Months Ended
(Millions of Dollars)	June 30, 2024	June 30, 2023	Variation
Operating revenues	$2,370	$2,144	$226
Purchased power	492	445	47
Fuel	11	18	(7)
Other operations and maintenance	671	569	102
Depreciation and amortization	345	339	6
Taxes, other than income taxes	579	541	38
Electric operating income	$272	$232	$40

CECONY’s electric sales and deliveries for the three months ended June 30, 2024 compared with the 2023 period were:


	Millions of kWh Delivered						Revenues in Millions (a)
	For the Three Months Ended						For the Three Months Ended
Description	June 30, 2024	June 30, 2023	Variation	Percent Variation			June 30, 2024	June 30, 2023	Variation	Percent Variation
Residential/Religious (b)	2,520	2,280	240	10.5	%		$901	$669	$232	34.7	%
Commercial/Industrial	2,208	2,340	(132)	(5.6)			622	568	54	9.5
Retail choice customers	4,851	4,644	207	4.5			587	501	86	17.2
NYPA, Municipal Agency and other sales	2,261	2,126	135	6.3			206	166	40	24.1
Other operating revenues (c)	—	—	—	—			54	240	(186)	(77.5)
Total	11,840	11,390	450	4.0	%	(d)	$2,370	$2,144	$226	10.5	%

(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 1.0 percent in the three months ended June 30, 2024 compared with the 2023 period.

Operating revenues increased $226 million in the three months ended June 30, 2024 compared with the 2023 period primarily due to an increase in revenues from the electric rate plan ($132 million), an increase in purchased power expenses ($47 million) and a change in incentives earned under the earnings adjustment mechanisms ($10 million).

Purchased power expenses increased $47 million in the three months ended June 30, 2024 compared with the 2023 period due to higher purchased volumes ($72 million), offset in part by lower unit costs ($25 million).

Fuel expenses decreased $7 million in the three months ended June 30, 2024 compared with the 2023 period due to lower unit costs ($4 million) and lower purchased volumes from the company's electric generating facilities ($3 million).

Other operations and maintenance expenses increased $102 million in the three months ended June 30, 2024 compared with the 2023 period primarily due to the impact of the NYSPSC order denying an April 2023 petition by CECONY that requested permission to capitalize costs to implement its new customer billing and information system in 2024 ($37 million), increases in total surcharges for assessments and fees that are collected in revenues from customers ($21 million), higher electric operations maintenance activities ($11 million) and higher health care costs ($7 million).

Depreciation and amortization expenses increased $6 million in the three months ended June 30, 2024 compared with the 2023 period primarily due to higher electric utility plant balances.

Taxes, other than income taxes increased $38 million in the three months ended June 30, 2024 compared with the 2023 period due to higher property taxes ($31 million) and higher state and local revenue taxes ($13 million), offset in part by lower deferral of over-collected property taxes ($6 million).

Gas

CECONY’s results of gas operations for the three months ended June 30, 2024 compared with the 2023 period were as follows:


	For the Three Months Ended
(Millions of Dollars)	June 30, 2024	June 30, 2023	Variation
Operating revenues	$538	$531	$7
Gas purchased for resale	57	91	(34)
Other operations and maintenance	147	132	15
Depreciation and amortization	112	106	6
Taxes, other than income taxes	137	119	18
Gas operating income	$85	$83	$2

CECONY’s gas sales and deliveries, excluding off-system sales, for the three months ended June 30, 2024 compared with the 2023 period were:


	Thousands of Dt Delivered						Revenues in Millions (a)
	For the Three Months Ended						For the Three Months Ended
Description	June 30, 2024	June 30, 2023	Variation	Percent Variation			June 30, 2024	June 30, 2023	Variation	Percent Variation
Residential	9,394	8,508	886	10.4	%		$243	$235	$8	3.4	%
General	7,137	6,136	1,001	16.3			142	98	44	44.9
Firm transportation	15,886	14,198	1,688	11.9			198	155	43	27.7
Total firm sales and transportation	32,417	28,842	3,575	12.4	%	(b)	$583	$488	$95	19.5	%
Interruptible sales (c)	802	1,581	(779)	(49.3)			7	8	(1)	(12.5)
NYPA	15,413	14,119	1,294	9.2			1	1	—	—
Generation plants	13,965	11,453	2,512	21.9			5	6	(1)	(16.7)
Other	4,615	4,571	44	1.0			10	9	1	11.1
Other operating revenues (d)	—	—	—	—			(68)	19	(87)	Large
Total	67,212	60,566	6,646	11.0	%		$538	$531	$7	1.3	%

(a)Revenues from gas sales are subject to a weather normalization clause and a revenue decoupling mechanism as a result of which delivery revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved.

(b)After adjusting for variations, primarily billing days, firm gas sales and transportation volumes in CECONY’s service area increased 12.1 percent in the three months ended June 30, 2024 compared with the 2023 period.

(c)Includes 94 thousand and 91 thousand of Dt for the 2024 and 2023 periods, respectively, that are also reflected in firm transportation and other.

(d)Other gas operating revenues generally reflect changes in the revenue decoupling mechanism and weather normalization clause current asset or regulatory liability and changes in regulatory assets and liabilities in accordance with other provisions of CECONY’s rate plan.

Operating revenues increased $7 million in the three months ended June 30, 2024 compared with the 2023 period primarily due to an increase in gas revenues under the company's gas rate plan ($52 million), offset in part by lower gas purchased for resale ($34 million), a change in incentives earned under the earnings adjustment mechanisms ($5 million) and higher interest accrual on net plant reconciliation ($3 million).

Gas purchased for resale decreased $34 million in the three months ended June 30, 2024 compared with the 2023 period due to lower unit costs ($45 million), offset in part by higher purchased volumes ($11 million).

Other operations and maintenance expenses increased $15 million in the three months ended June 30, 2024 compared with the 2023 period primarily due to the impact of the NYSPSC order denying an April 2023 petition by CECONY that requested permission to capitalize costs to implement its new customer billing and information system in 2024 ($8 million) and higher gas operations costs ($7 million).

Depreciation and amortization expenses increased $6 million in the three months ended June 30, 2024 compared with the 2023 period primarily due to higher gas utility plant balances.

Taxes, other than income taxes increased $18 million in the three months ended June 30, 2024 compared with the 2023 period primarily due to higher property taxes ($14 million), higher deferral of under-collected property taxes ($2 million) and higher state and local revenue taxes ($2 million).

Steam

CECONY’s results of steam operations for the three months ended June 30, 2024 compared with the 2023 period were as follows:


	For the Three Months Ended
(Millions of Dollars)	June 30, 2024	June 30, 2023	Variation
Operating revenues	$88	$69	$19
Purchased power	6	7	(1)
Fuel	4	—	4
Other operations and maintenance	53	56	(3)
Depreciation and amortization	25	25	—
Taxes, other than income taxes	43	34	9
Steam operating income	$(43)	$(53)	$10

CECONY’s steam sales and deliveries for the three months ended June 30, 2024 compared with the 2023 period were:


	Millions of Pounds Delivered						Revenues in Millions
	For the Three Months Ended						For the Three Months Ended
Description	June 30, 2024	June 30, 2023	Variation	Percent Variation			June 30, 2024	June 30, 2023	Variation	Percent Variation
General	64	47	17	36.2	%		$5	$3	$2	66.7	%
Apartment house	915	828	87	10.5			28	22	6	27.3
Annual power	1,851	1,769	82	4.6			61	50	11	22.0
Other operating revenues (a)	—	—	—	—			(6)	(6)	—	—
Total	2,830	2,644	186	7.0	%	(b)	$88	$69	$19	27.5	%

(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 prior to November 1, 2023, and billing days, steam sales and deliveries in the company's service area decreased 4.7 percent in the three months ended June 30, 2024 compared with the 2023 period.

Operating revenues increased $19 million in the three months ended June 30, 2024 compared with the 2023 period primarily due to the benefit from the new steam rate plan ($16 million) and higher fuel expense ($4 million), offset in part by lower purchased power ($1 million).

Fuel expenses increased $4 million in the three months ended June 30, 2024 compared with the 2023 period due to higher unit costs ($4 million).

Other operations and maintenance expenses decreased $3 million in the three months ended June 30, 2024 compared with the 2023 period primarily due to lower costs for pension and other postretirement benefits, reflecting reconciliation to the rate plan level ($15 million), offset in part by the impact of the NYSPSC order denying an April 2023 petition by CECONY that requested permission to capitalize costs to implement its new customer billing and information system in 2024 ($6 million), an increase in municipal infrastructure support ($3 million), higher steam operations maintenance activities ($1 million) and an increase in health care costs ($1 million).

Taxes, other than income taxes increased $9 million in the three months ended June 30, 2024 compared with the 2023 period primarily due to a higher deferral of under-collected property taxes ($7 million).

Taxes, Other Than Income Taxes

At $759 million, taxes other than income taxes remain one of CECONY’s largest operating expenses for the three months ended June 30, 2024. The principal components of, and variations in, taxes other than income taxes were:


	For the Three Months Ended June 30,
(Millions of Dollars)	2024		2023		Variation
Property taxes	$650		$604		$46
State and local taxes related to revenue receipts	94		78		16
Payroll taxes	19		19		—
Other taxes	(4)		(7)		3
Total	$759	(a)	$694	(a)	$65

(a)Including sales tax on customers’ bills, total taxes other than income taxes in 2024 and 2023 were $928 million and $854 million, respectively.

Other Income (Deductions)

Other income decreased $42 million in the three months ended June 30, 2024 compared with the 2023 period primarily due to lower credits associated with components of pension and other postretirement benefits other than service cost ($48 million), offset in part by an increase in AFUDC ($3 million) and an increase in the revenue decoupling mechanism interest accrual ($3 million).

Net Interest Expense

Net interest expense increased $46 million in the three months ended June 30, 2024 compared with the 2023 period primarily due to higher interest on long-term debt ($33 million) and short-term debt ($7 million) and an increase in the carrying charges and interest on regulatory liability balances ($4 million).

Income Tax Expense

Income taxes decreased $33 million in the three months ended June 30, 2024 compared with the 2023 period primarily due to the absence in 2024 of a remeasurement of state deferred income tax assets and liabilities as a result of the New York State legislation enacted in 2023 ($10 million), higher amortization of excess deferred federal income taxes ($9 million), lower income before income tax expense ($8 million) and lower state income taxes ($5 million).

O&R


	For the Three Months Ended June 30, 2024			For the Three Months Ended June 30, 2023
(Millions of Dollars)	Electric	Gas	2024 Total	Electric	Gas	2023 Total	2024-2023 Variation
Operating revenues	$180	$44	$224	$159	$41	$200	$24
Purchased power	58	—	58	43	—	43	15
Gas purchased for resale	—	11	11	—	8	8	3
Other operations and maintenance	75	19	94	71	19	90	4
Depreciation and amortization	20	9	29	18	8	26	3
Taxes, other than income taxes	15	8	23	14	8	22	1
Operating income (loss)	$12	$(3)	$9	$13	$(2)	$11	$(2)

Electric

O&R’s results of electric operations for the three months ended June 30, 2024 compared with the 2023 period were as follows:


	For the Three Months Ended
(Millions of Dollars)	June 30, 2024	June 30, 2023	Variation
Operating revenues	$180	$159	$21
Purchased power	58	43	15
Other operations and maintenance	75	71	4
Depreciation and amortization	20	18	2
Taxes, other than income taxes	15	14	1
Electric operating income	$12	$13	$(1)

O&R’s electric sales and deliveries for the three months ended June 30, 2024 compared with the 2023 period were:


	Millions of kWh Delivered						Revenues in Millions (a)
	For the Three Months Ended						For the Three Months Ended
Description	June 30, 2024	June 30, 2023	Variation	Percent Variation			June 30, 2024	June 30, 2023	Variation	Percent Variation
Residential/Religious (b)	477	416	61	14.7	%		$96	$82	$14	17.1	%
Commercial/Industrial	223	231	(8)	(3.5)			34	30	4	13.3
Retail choice customers	635	563	72	12.8			47	40	7	17.5
Public authorities	28	26	2	7.7			2	3	(1)	(33.3)
Other operating revenues (c)	—	—	—	—			1	4	(3)	(75.0)
Total	1,363	1,236	127	10.3	%	(d)	$180	$159	$21	13.2	%

(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 decreased 6.2 percent in the three months ended June 30, 2024 compared with the 2023 period.

Operating revenues increased $21 million in the three months ended June 30, 2024 compared with the 2023 period primarily due to higher purchased power expenses ($15 million).

Purchased power expense increased $15 million in the three months ended June 30, 2024 compared with the 2023 period primarily due to higher purchased volumes ($9 million) and higher unit costs ($6 million).

Other operations and maintenance expenses increased $4 million in the three months ended June 30, 2024 compared with the 2023 period primarily due to higher non-deferred storm costs.

Gas

O&R’s results of gas operations for the three months ended June 30, 2024 compared with the 2023 period were as follows:


	For the Three Months Ended
(Millions of Dollars)	June 30, 2024	June 30, 2023	Variation
Operating revenues	$44	$41	$3
Gas purchased for resale	11	8	3
Other operations and maintenance	19	19	—
Depreciation and amortization	9	8	1
Taxes, other than income taxes	8	8	—
Gas operating income	$(3)	$(2)	($1)

O&R’s gas sales and deliveries, excluding off-system sales, for the three months ended June 30, 2024 compared with the 2023 period were:


	Thousands of Dt Delivered						Revenues in Millions (a)
	For the Three Months Ended						For the Three Months Ended
Description	June 30, 2024	June 30, 2023	Variation	Percent Variation			June 30, 2024	June 30, 2023	Variation	Percent Variation
Residential	1,783	1,524	259	17.0	%		$32	$24	$8	33.3	%
General	468	314	154	49.0			5	3	2	66.7
Firm transportation	957	1,028	(71)	(6.9)			7	8	(1)	(12.5)
Total firm sales and transportation	3,208	2,866	342	11.9	%	(b)	$44	$35	$9	25.7	%
Interruptible sales	556	803	(247)	(30.8)			2	1	1	Large
Generation plants	—	—	—	—			—	—	—	—
Other	12	11	1	9.1			—	1	(1)	Large
Other gas revenues	—	—	—	—			(2)	4	(6)	Large
Total	3,776	3,680	96	2.6	%		$44	$41	$3	7.3	%

(a)Revenues from New York gas sales are subject to a weather normalization clause and a revenue decoupling mechanism as a result of which delivery revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved.

(b)After adjusting for weather and other variations, firm sales and transportation volumes in O&R's service area decreased 0.2 percent in the three months ended June 30, 2024 compared with the 2023 period.

Operating revenues increased $3 million in the three months ended June 30, 2024 compared with the 2023 period primarily due to higher gas purchased for resale ($3 million).

Gas purchased for resale increased $3 million in the three months ended June 30, 2024 compared with the 2023 period due to higher unit costs ($3 million).

Taxes, Other Than Income Taxes

Taxes, other than income taxes, remained consistent in 2024 compared with 2023 for the three months ended June 30, 2024. The principal components of taxes, other than income taxes, were:


	For the Three Months Ended June 30,
(Millions of Dollars)	2024		2023		Variation
Property taxes	$18		$18		$—
State and local taxes related to revenue receipts	3		2		1
Payroll taxes	2		2		—
Total	$23	(a)	$22	(a)	$1

(a)Including sales tax on customers’ bills, total taxes other than income taxes in 2024 and 2023 were $29 million and $28 million, respectively.

Other Income (Deductions)

Other income decreased $4 million in the three months ended June 30, 2024 compared with the 2023 period primarily due to lower credits associated with components of pension and other postretirement benefits other than service cost ($5 million).

Con Edison Transmission

Other Income (Deductions)

Other income increased $3 million in the three months ended June 30, 2024 compared with the 2023 period primarily due to higher investment income from MVP ($3 million).

Income Tax Expense

Income taxes decreased $6 million in the three months ended June 30, 2024 compared with the 2023 period primarily due to flow through tax benefits in 2024 for plant related items ($5 million) and lower state income taxes ($2 million), offset in part by higher income before income tax expense ($1 million).

The Companies’ results of operations for the six months ended June 30, 2024 and 2023 were as follows:


	CECONY		O&R		Clean Energy Businesses (a)		Con Edison Transmission		Other (a)		Con Edison (b)
(Millions of Dollars)	2024	2023	2024	2023	2024	2023	2024	2023	2024	2023	2024	2023
Operating revenues	$6,967	$6,697	$527	$521	$—	$129	$2	$2	$(1)	$(2)	$7,495	$7,347
Purchased power	1,076	1,083	123	114	—	—	—	—	—	1	1,199	1,198
Fuel	103	207	—	—	—	—	—	—	—	—	103	207
Gas purchased for resale	292	456	43	71	—	41	—	—	—	(1)	335	567
Other operations and maintenance	1,659	1,507	191	187	—	47	6	6	—	(3)	1,856	1,744
Depreciation and amortization	993	943	58	51	—	—	1	—	(1)	—	1,051	994
Taxes, other than income taxes	1,540	1,430	48	46	—	4	—	—	2	2	1,590	1,482


Gain (Loss) on sale of the Clean Energy Businesses	—	—	—	—	—	—	—	—	(30)	867	(30)	867
Operating income	1,304	1,071	64	52	—	37	(5)	(4)	(32)	866	1,331	2,022
Other income (deductions)	298	367	16	24	—	1	30	15	(2)	(3)	342	404
Net interest expense	540	456	27	25	—	16	—	2	10	—	577	499
Income before income tax expense	1,062	982	53	51	—	22	25	9	(44)	863	1,096	1,927
Income tax expense	182	189	13	12	—	3	1	3	(22)	65	174	272
Net income	$880	$793	$40	$39	$—	$19	$24	$6	($22)	$798	$922	$1,655
Loss attributable to non-controlling interest	—	—	—	—	—	(3)	—	—	—	—	—	(3)
Net income for common stock	$880	$793	$40	$39	$—	$22	$24	$6	($22)	$798	$922	$1,658

(a)On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note Q and Note R to the Second Quarter Financial Statements.

(b)Other includes the parent company, Con Edison’s tax equity investments, the deferred project held for sale and consolidation adjustments. See Note R to the Second Quarter Financial Statements.

(c)Represents the consolidated results of operations of Con Edison and its businesses.

CECONY


	For the Six Months Ended June 30, 2024				For the Six Months Ended June 30, 2023
(Millions of Dollars)	Electric	Gas	Steam	2024 Total	Electric	Gas	Steam	2023 Total	2024-2023 Variation
Operating revenues	$4,812	$1,781	$374	$6,967	$4,500	$1,822	$375	$6,697	$270
Purchased power	1,060	—	16	1,076	1,058	—	25	1,083	(7)
Fuel	69	—	34	103	97	—	110	207	(104)
Gas purchased for resale	—	292	—	292	—	456	—	456	(164)
Other operations and maintenance	1,284	274	101	1,659	1,138	257	112	1,507	152
Depreciation and amortization	715	226	52	993	683	211	49	943	50
Taxes, other than income taxes	1,172	288	80	1,540	1,100	256	74	1,430	110
Operating income	$512	$701	$91	$1,304	$424	$642	$5	$1,071	$233

Electric

CECONY’s results of electric operations for the six months ended June 30, 2024 compared with the 2023 period were as follows:


	For the Six Months Ended
(Millions of Dollars)	June 30, 2024	June 30, 2023	Variation
Operating revenues	$4,812	$4,500	$312
Purchased power	1,060	1,058	2
Fuel	69	97	(28)
Other operations and maintenance	1,284	1,138	146
Depreciation and amortization	715	683	32
Taxes, other than income taxes	1,172	1,100	72
Electric operating income	$512	$424	$88

CECONY’s electric sales and deliveries for the six months ended June 30, 2024 compared with the 2023 period were:


	Millions of kWh Delivered						Revenues in Millions (a)
	For the Six Months Ended						For the Six Months Ended
Description	June 30, 2024	June 30, 2023	Variation	Percent Variation			June 30, 2024	June 30, 2023	Variation	Percent Variation
Residential/Religious (b)	5,111	4,894	217	4.4	%		$1,866	$1,381	$485	35.1	%
Commercial/Industrial	4,880	5,127	(247)	(4.8)			1,360	1,244	116	9.3
Retail choice customers	9,620	9,449	171	1.8			1,129	964	165	17.1
NYPA, Municipal Agency and other sales	4,562	4,456	106	2.4			383	325	58	17.8
Other operating revenues (c)	—	—	—	—			74	586	(512)	(87.4)
Total	24,173	23,926	247	1.0	%	(d)	$4,812	$4,500	$312	6.9	%

(b)“Residential/Religious” generally includes single-family dwellings, individual apartments in multi-family dwellings, religious organizations and certain other not-for-profit organizations.

(d)After adjusting for variations, primarily weather and billing days, electric delivery volumes in CECONY’s service area decreased 1.3 percent in the six months ended June 30, 2024 compared with the 2023 period.

Operating revenues increased $312 million in the six months ended June 30, 2024 compared with the 2023 period primarily due to an increase in revenues from the electric rate plan ($274 million), a change in incentives earned under the earnings adjustment mechanisms ($10 million) and higher purchased power expenses ($2 million).

Fuel expenses decreased $28 million in the six months ended June 30, 2024 compared with the 2023 period due to lower unit costs ($20 million) and lower purchased volumes from CECONY's electric generating facilities ($8 million).

Other operations and maintenance expenses increased $146 million in the six months ended June 30, 2024 compared with the 2023 period primarily due to the impact of the NYSPSC order denying an April 2023 petition by CECONY that requested permission to capitalize costs to implement its new customer billing and information system in 2024 ($37 million), higher total surcharges for assessments and fees that are collected in revenues from customers ($35 million), higher electric operations maintenance activities ($21 million), an increase in municipal infrastructure support ($10 million), higher health care costs ($4 million), an increase in the costs for injuries and damages ($4 million) and higher uncollectible expenses ($3 million).

Depreciation and amortization expenses increased $32 million in the six months ended June 30, 2024 compared with the 2023 period primarily due to higher electric utility plant balances.

Taxes, other than income taxes increased $72 million in the six months ended June 30, 2024 compared with the 2023 period primarily due to higher property taxes ($62 million) and higher state and local revenue taxes ($21 million) offset in part by a lower deferral of over-collected property taxes ($11 million).

Gas

CECONY’s results of gas operations for the six months ended June 30, 2024 compared with the 2023 period were as follows:


	For the Six Months Ended
(Millions of Dollars)	June 30, 2024	June 30, 2023	Variation
Operating revenues	$1,781	$1,822	$(41)
Gas purchased for resale	292	456	(164)
Other operations and maintenance	274	257	17
Depreciation and amortization	226	211	15
Taxes, other than income taxes	288	256	32
Gas operating income	$701	$642	$59

CECONY’s gas sales and deliveries, excluding off-system sales, for the six months ended June 30, 2024 compared with the 2023 period were:


	Thousands of Dt Delivered						Revenues in Millions (a)
	For the Six Months Ended						For the Six Months Ended
Description	June 30, 2024	June 30, 2023	Variation	Percent Variation			June 30, 2024	June 30, 2023	Variation	Percent Variation
Residential	30,470	31,016	(546)	(1.8)	%		$745	$793	$(48)	(6.1)	%
General	19,233	18,662	571	3.1			416	353	63	17.8
Firm transportation	45,384	45,855	(471)	(1.0)			603	558	45	8.1
Total firm sales and transportation	95,087	95,533	(446)	(0.5)		(b)	1,764	1,704	60	3.5
Interruptible sales (c)	1,987	3,443	(1,456)	(42.3)			19	29	(10)	(34.5)
NYPA	28,403	24,092	4,311	17.9			1	1	—	—
Generation plants	26,914	23,234	3,680	15.8			10	14	(4)	(28.6)
Other	10,906	10,744	162	1.5			25	21	4	19.0
Other operating revenues (d)	—	—	—	—			(38)	53	(91)	Large
Total	163,297	157,046	6,251	4.0	%		$1,781	$1,822	$(41)	(2.3)	%

(b)After adjusting for variations, primarily billing days, firm gas sales and transportation volumes in CECONY’s service area decreased 2.0% percent in the six months ended June 30, 2024 compared with the 2023 period.

(c)Includes 129 thousand and 745 thousand of Dt for the 2024 and 2023 periods, respectively, that are also reflected in firm transportation and other.

Operating revenues decreased $41 million in the six months ended June 30, 2024 compared with the 2023 period primarily due to a decrease in gas purchased for resale ($164 million), higher interest accrual on net plant reconciliation ($8 million) and a change in incentives earned under the earnings adjustment mechanisms ($5 million), offset in part by an increase in revenues from the gas rate plan ($140 million).

Gas purchased for resale decreased $164 million in the six months ended June 30, 2024 compared with the 2023 period due to lower unit costs ($197 million), offset in part by higher purchased volumes ($33 million).

Other operations and maintenance expenses increased $17 million in the six months ended June 30, 2024 compared with the 2023 period primarily due to higher gas operations cost ($13 million) and the impact of the NYSPSC order denying an April 2023 petition by CECONY that requested permission to capitalize costs to implement its new customer billing and information system in 2024 ($8 million), offset in part by an increase in the total sur-credits for assessments and fees that are collected in revenues from customers ($2 million).

Depreciation and amortization expenses increased $15 million in the six months ended June 30, 2024 compared with the 2023 period primarily due to higher gas utility plant balances.

Taxes, other than income taxes increased $32 million in the six months ended June 30, 2024 compared with the 2023 period primarily due to a higher property taxes ($27 million) and higher deferral of under-collected property taxes ($8 million), offset in part by lower state and local taxes ($4 million).

Steam

CECONY’s results of steam operations for the six months ended June 30, 2024 compared with the 2023 period were as follows:


	For the Six Months Ended
(Millions of Dollars)	June 30, 2024	June 30, 2023	Variation
Operating revenues	$374	$375	$(1)
Purchased power	16	25	(9)
Fuel	34	110	(76)
Other operations and maintenance	101	112	(11)
Depreciation and amortization	52	49	3
Taxes, other than income taxes	80	74	6
Steam operating income	$91	$5	$86

CECONY’s steam sales and deliveries for the six months ended June 30, 2024 compared with the 2023 period were:


	Millions of Pounds Delivered						Revenues in Millions
	For the Six Months Ended						For the Six Months Ended
Description	June 30, 2024	June 30, 2023	Variation	Percent Variation			June 30, 2024	June 30, 2023	Variation	Percent Variation
General	315	308	7	2.3	%		$22	$17	$5	29.4	%
Apartment house	3,021	2,840	181	6.4			105	102	3	2.9
Annual power	6,143	6,127	16	0.3			263	248	15	6.0
Other operating revenues (a)	—	—	—	—			(16)	8	(24)	Large
Total	9,479	9,275	204	2.2	%	(b)	$374	$375	$(1)	(0.3)	%

(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 decreased 3.2 percent in the six months ended June 30, 2024 compared with the 2023 period.

Operating revenues decreased $1 million in the six months ended June 30, 2024 compared with the 2023 period primarily due to lower fuel expenses ($76 million) and lower purchased power expenses ($9 million), offset in part by the benefit from the new steam rate plan ($80 million).

Purchased power expenses decreased $9 million in the six months ended June 30, 2024 compared with the 2023 period due to lower unit costs ($9 million).

Fuel expenses decreased $76 million in the six months ended June 30, 2024 compared with the 2023 period due to lower unit costs ($79 million), offset in part by higher purchased volumes from CECONY’s steam generating facilities ($3 million).

Other operations and maintenance expenses decreased $11 million in the six months ended June 30, 2024 compared with the 2023 period primarily due to lower costs for pension and other postretirement benefits, reflecting reconciliation to the rate plan level ($30 million), offset in part by the impact of the NYSPSC order denying an April 2023 petition by CECONY that requested permission to capitalize costs to implement its new customer billing and information system in 2024 ($6 million), higher steam operations maintenance activities ($6 million) and an increase in municipal infrastructure support ($4 million).

Depreciation and amortization expenses increased $3 million in the six months ended June 30, 2024 compared with the 2023 period primarily due to higher gas utility plant balances.

Taxes, other than income taxes increased $6 million in the six months ended June 30, 2024 compared with the 2023 period primarily due to higher property taxes ($4 million), higher state and local taxes ($1 million) and a higher deferral of under-collected property taxes ($1 million).

Taxes, Other Than Income Taxes

At $1,540 million, taxes other than income taxes remain one of CECONY’s largest operating expenses for the six months ended June 30, 2024. The principal components of, and variations in, taxes other than income taxes were:


	For the Six Months Ended June 30,
(Millions of Dollars)	2024		2023		Variation
Property taxes	$1,299		$1,206		$93
State and local taxes related to revenue receipts	214		197		17
Payroll taxes	51		47		4
Other taxes	(24)		(20)		(4)
Total	$1,540	(a)	$1,430	(a)	$110

(a)Including sales tax on customers’ bills, total taxes other than income taxes in 2024 and 2023 were $1,906 million and $1,756 million, respectively.

Other Income (Deductions)

Other income decreased $69 million in the six months ended June 30, 2024 compared with the 2023 period primarily due to lower costs associated with components of pension and other postretirement benefits other than service cost ($88 million), offset in part by an increase in AFUDC ($7 million) and an increase in the revenue decoupling mechanism interest accrual ($7 million).

Net Interest Expense

Net interest expense increased $84 million in the six months ended June 30, 2024 compared with the 2023 period primarily due to higher interest expense for long-term debt ($59 million) and short-term debt ($18 million).

Income Tax Expense

Income taxes decreased $7 million in the six months ended June 30, 2024 compared with the 2023 period primarily due to higher amortization of excess deferred federal income taxes ($16 million), the absence in 2024 of a remeasurement of state deferred income tax assets and liabilities as a result of the enacted New York State legislation in 2023 ($10 million) and a decrease in the reserve for injuries and damages ($3 million), offset in part by higher income before income tax expense ($17 million) and lower flow through tax benefits in 2024 for plant-related items ($3 million).

O&R


	For the Six Months Ended June 30, 2024			For the Six Months Ended June 30, 2023
(Millions of Dollars)	Electric	Gas	2024 Total	Electric	Gas	2023 Total	2024-2023 Variation
Operating revenues	$370	$157	$527	$341	$180	$521	$6
Purchased power	123	—	123	114	—	114	9
Gas purchased for resale	—	43	43	—	71	71	(28)
Other operations and maintenance	151	40	191	147	40	187	4
Depreciation and amortization	40	18	58	36	15	51	7
Taxes, other than income taxes	31	17	48	30	16	46	2
Operating income	$25	$39	$64	$14	$38	$52	$12

Electric

O&R’s results of electric operations for the six months ended June 30, 2024 compared with the 2023 period were as follows:


	For the Six Months Ended
(Millions of Dollars)	June 30, 2024	June 30, 2023	Variation
Operating revenues	$370	$341	$29
Purchased power	123	114	9
Other operations and maintenance	151	147	4
Depreciation and amortization	40	36	4
Taxes, other than income taxes	31	30	1
Electric operating income	$25	$14	$11

O&R’s electric sales and deliveries for the six months ended June 30, 2024 compared with the 2023 period were:


	Millions of kWh Delivered						Revenues in Millions (a)
	For the Six Months Ended						For the Six Months Ended
Description	June 30, 2024	June 30, 2023	Variation	Percent Variation			June 30, 2024	June 30, 2023	Variation	Percent Variation
Residential/Religious (b)	977	883	94	10.6	%		$203	$189	$14	7.4	%
Commercial/Industrial	461	493	(32)	(6.5)			74	71	3	4.2
Retail choice customers	1,217	1,058	159	15.0			89	70	19	27.1
Public authorities	55	53	2	3.8			5	6	(1)	(16.7)
Other operating revenues (c)	—	—	—	—			(1)	5	(6)	Large
Total	2,710	2,487	223	9.0	%	(d)	$370	$341	$29	8.5	%

(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 decreased 1.6 percent in the six months ended June 30, 2024 compared with the 2023 period.

Operating revenues increased $29 million in the six months ended June 30, 2024 compared with the 2023 period primarily due to higher revenues from the New York electric rate plan ($10 million) and higher purchased power expenses ($9 million).

Purchased power expenses increased $9 million in the six months ended June 30, 2024 compared with the 2023 period due to higher purchased volumes ($11 million), offset in part by lower unit costs ($2 million).

Other operations and maintenance expenses increased $4 million in the six months ended June 30, 2024 compared with the 2023 period primarily due to higher uncollectible expenses ($2 million) and customer assistance costs ($1 million).

Depreciation and Amortization expenses increased $4 million in the six months ended June 30, 2024 compared with the 2023 period due to higher electric utility plant balances.

Gas

O&R’s results of gas operations for the six months ended June 30, 2024 compared with the 2023 period were as follows:


	For the Six Months Ended
(Millions of Dollars)	June 30, 2024	June 30, 2023	Variation
Operating revenues	$157	$180	$(23)
Gas purchased for resale	43	71	(28)
Other operations and maintenance	40	40	—
Depreciation and amortization	18	15	3
Taxes, other than income taxes	17	16	1
Gas operating income	$39	$38	$1

O&R’s gas sales and deliveries, excluding off-system sales, for the six months ended June 30, 2024 compared with the 2023 period were:


	Thousands of Dt Delivered						Revenues in Millions (a)
	For the Six Months Ended						For the Six Months Ended
Description	June 30, 2024	June 30, 2023	Variation	Percent Variation			June 30, 2024	June 30, 2023	Variation	Percent Variation
Residential	7,758	6,732	1,026	15.2	%		$117	$124	$(7)	(5.6)	%
General	1,193	1,408	(215)	(15.3)			14	21	(7)	(33.3)
Firm transportation	3,327	3,208	119	3.7			24	25	(1)	(4.0)
Total firm sales and transportation	12,278	11,348	930	8.2		(b)	$155	$170	$(15)	(8.8)
Interruptible sales	1,303	1,760	(457)	(26.0)			4	3	1	33.3
Generation plants	2	1	1	Large			—	—	—	—
Other	43	305	(262)	(85.9)			—	1	(1)	Large
Other gas revenues	—	—	—	—			(2)	6	(8)	Large
Total	13,626	13,414	212	1.6	%		$157	$180	$(23)	(12.8)	%

(b)After adjusting for weather and other variations, total firm sales and transportation volumes in O&R's service area decreased 2.3 percent in the six months ended June 30, 2024 compared with the 2023 period.

Operating revenues decreased $23 million in the six months ended June 30, 2024 compared with the 2023 period primarily due to a decrease in gas purchased for resale ($28 million), offset in part by higher revenues from the New York gas rate plan ($3 million).

Gas purchased for resale decreased $28 million in the six months ended June 30, 2024 compared with the 2023 period due to lower unit costs ($32 million), offset in part by higher purchased volumes ($4 million).

Depreciation and Amortization expenses increased $3 million in the six months ended June 30, 2024 compared with the 2023 period due to higher gas utility plant balances.

Taxes, Other Than Income Taxes

Taxes, other than income taxes, increased by $2 million in 2024 compared with 2023 for the six months ended June 30, 2024. The principal components of taxes, other than income taxes, were:


	For the Six Months Ended June 30,
(Millions of Dollars)	2024		2023		Variation
Property taxes	$36		$35		$1
State and local taxes related to revenue receipts	6		6		—
Payroll taxes	6		5		1
Total	$48	(a)	$46	(a)	$2

(a)Including sales tax on customers’ bills, total taxes other than income taxes in 2024 and 2023 were $62 million and $61 million, respectively.

Other Income (Deductions)

Other income decreased $8 million in the six months ended June 30, 2024 compared with the 2023 period primarily due to lower credits associated with components of pension and other postretirement benefits other than service cost ($9 million).

Con Edison Transmission

Other Income (Deductions)

Other income (deductions) increased $15 million in the six months ended June 30, 2024 compared with the 2023 period primarily due to higher investment income from MVP ($13 million).

Other

Income Tax Expense

Income taxes decreased $87 million in the six months ended June 30, 2024 compared with the 2023 period primarily due to lower income before income tax expense ($228 million), mostly due to the prior year gain on the sale of all of the stock of the Clean Energy Businesses and offsetting non-recurring tax benefits ($141 million) recognized in 2023.

Clean Energy Businesses

On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note Q and Note R to the Second Quarter Financial Statements. The Clean Energy Businesses’ results of operations for the six months ended June 30, 2024 compared with the 2023 period were as follows:


	For the Six Months Ended
(Millions of Dollars)	June 30, 2024	June 30, 2023	Variation
Operating revenues	$—	$129	$(129)

Gas purchased for resale	—	41	(41)
Other operations and maintenance	—	47	(47)

Taxes, other than income taxes	—	4	(4)




Operating income	$—	$37	$(37)

Net Interest Expense

Net interest expense decreased $16 million in the six months ended June 30, 2024 compared with the 2023 period primarily due to lower unrealized gains on interest rate swaps in the 2023 period. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses and the impact on the 2023 period is shown through the date of sale. See Note Q and Note R to the Second Quarter Financial Statements.

Income Tax Expense

Income taxes decreased $3 million in the six months ended June 30, 2024 compared with the 2023 period primarily due to lower income before income tax expense ($5 million), a decrease in the valuation allowance on deferred state net operating losses ($2 million) and lower state income tax expense ($1 million), offset in part by higher renewable energy credits due to the sale of all of the stock of the Clean Energy Businesses on March 1, 2023 ($5 million).

Income (Loss) Attributable to Non-Controlling Interest

Loss attributable to non-controlling interest decreased $3 million in the six months ended June 30, 2024 compared with the 2023 period primarily due to the sale of all of the stock of the Clean Energy Businesses.

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 Requirements and Resources," below.

Con Edison and the Utilities have a $2,500 million revolving credit agreement (the Credit Agreement) in place under which banks are committed to provide loans on a revolving credit basis until March 2029, unless extended for an additional one-year term, subject to certain conditions. CECONY has a $500 million 364-day revolving credit agreement (the CECONY Credit Agreement) in place under which banks are committed to provide loans on a revolving credit basis until March 2025, subject to certain conditions. Con Edison and the Utilities have not entered into any loans under the Credit Agreement and CECONY has not entered into any loans under the CECONY Credit Agreement. See Note D to the Second Quarter Financial Statements.

The Companies’ liquidity reflects cash flows from operating, investing and financing activities, as shown on their respective consolidated statements of cash flows and as discussed below.

The Companies’ cash, temporary cash investments and restricted cash resulting from operating, investing and financing activities for the six months ended June 30, 2024 and 2023 are summarized as follows:


	For the Six Months Ended June 30,
	CECONY		O&R		Clean Energy Businesses (d)		Con Edison Transmission		Other (a)(b)		Con Edison (b)
(Millions of Dollars)	2024	2023	2024	2023	2024	2023	2024	2023	2024	2023	2024	2023
Operating activities	$1,791	$1,140	$71	$108	$—	$—	$—	$(150)	$50	$66	$1,912	$1,164
Investing activities	(2,453)	(2,162)	(157)	(131)	—	(248)	(13)	(42)	1	4,035	(2,622)	1,452
Financing activities	985	1,314	86	6	—	—	(1)	206	(48)	(3,716)	1,022	(2,190)
Net change for the period	323	292	—	(17)	—	(248)	(14)	14	3	385	312	426
Balance at beginning of period	1,138	1,056	23	35	—	248	25	—	9	191	1,195	1,530
Balance at end of period (c)	$1,461	$1,348	$23	$18	$—	$—	$11	$14	$12	$576	$1,507	$1,956
Less: Cash balances held for sale (d)	—	—	—	—	—	—	—	—	7	1	7	1
Balance at end of period excluding held for sale	$1,461	$1,348	$23	$18	$—	$—	$11	$14	$5	$575	$1,500	$1,955

(a) Other includes the parent company, Con Edison’s tax equity investments, the deferred project held for sale and consolidation adjustments. See Note R to the Second 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 Second Quarter Financial Statements.

(d) On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note Q and Note R to the Second Quarter Financial Statements.

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. For the Utilities, credits to their customers of the net benefits of the TCJA, including the reduction of the corporate tax rate to 21 percent, decrease cash flows from operating activities. Pursuant to their rate plans, the Utilities also recover from customers the amount of property taxes they will pay. The payment of property taxes by the Utilities affects the timing of cash flows and increases the amount of short-term borrowings issued by the Utilities when property taxes are due and as property taxes increase, but generally does not impact net income. See Note J to the Second Quarter Financial Statements.

In general, the Utilities suspended service disconnections during the COVID-19 pandemic. The Utilities’ rate plans include reconciliation of late payment charges and write-offs of customer accounts receivable balances to amounts reflected in rates, with recovery/refund from or to customers via surcharge/sur-credit. Although these regulatory mechanisms are in place, a continued slower recovery in cash of outstanding customer accounts receivable balances has impacted the Companies’ liquidity and may continue to impact liquidity. See “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 six months ended June 30, 2024 for Con Edison were $748 million higher than in the 2023 period. The change in net cash flows for Con Edison primarily reflects:

higher net deferred credits, noncurrent liabilities, leases and other regulatory liabilities balances of $414 million;
an increase in accounts payable of $399 million;
a decrease in prepayments of $88 million; and
a decrease in the revenue decoupling mechanism receivable of $60 million.

Offset in part by

a decrease in accrued taxes of ($166 million); and
an increase in materials and supplies, including fuel oil and gas in storage of ($56 million).

Net cash flows from operating activities for the six months ended June 30, 2024 for CECONY were $651 million higher than in the 2023 period. The change in net cash flows for CECONY primarily reflects:

lower net deferred charges, noncurrent assets, leases and other regulatory assets balances of $425 million;
an increase in accounts payable of $235 million; and
a decrease in the revenue decoupling mechanism receivable of $44 million.

Offset in part by

a change in pensions and retiree benefits obligations of ($42 million).

Cash Flows From (Used in) Investing Activities

The following table summarizes key components of Con Edison’s investing cash flows.


	For the Six Months Ended June 30,
(Millions of Dollars)	2024	2023	Variance
INVESTING ACTIVITIES
Utility construction expenditures	$(2,396)	$(2,097)	$(299)
Cost of removal less salvage	(214)	(196)	(18)
Non-utility construction expenditures	—	(140)	140


Proceeds from sale of the Clean Energy Businesses, net of cash and cash equivalents sold	—	3,927	(3,927)

Other investing activities	(12)	(42)	30
NET CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES	$(2,622)	$1,452	$(4,074)

Net cash flows from investing activities for Con Edison were $4,074 million lower for the six months ended June 30, 2024 compared with the 2023 period. The change for Con Edison primarily reflects:

the proceeds from the sale of all of the stock of the Clean Energy Businesses, net of cash and cash equivalents sold in the prior year of $3,927 million;
an increase in utility construction expenditures of $299 million; and
higher cost of removal less salvage of $18 million.

Offset in part by

a decrease in non-utility construction expenditures of ($140 million).

The following table summarizes key components of CECONY’s investing cash flows.


	For the Six Months Ended June 30,
(Millions of Dollars)	2024	2023	Variance
INVESTING ACTIVITIES
Utility construction expenditures	$(2,242)	$(1,969)	$(273)
Cost of removal less salvage	(211)	(193)	(18)




NET CASH FLOWS USED IN INVESTING ACTIVITIES	$(2,453)	$(2,162)	$(291)

Net cash flows used in investing activities for CECONY were $291 million higher for the six months ended June 30, 2024 compared with the 2023 period. The change for CECONY primarily reflects:

an increase in utility construction expenditures of $273 million; and
higher cost of removal less salvage of $18 million.

Pursuant to their rate plans, the Utilities recover the cost of utility construction expenditures from customers, including an approved rate of return (before and after being placed in service and AFUDC before being placed in service). Increases in the amount of utility construction expenditures may temporarily increase the amount of short-term debt issued by the Utilities prior to the long-term financing of such amounts.

Cash Flows From (Used In) Financing Activities

The following table summarizes key components of Con Edison’s financing cash flows.


	For the Six Months Ended June 30,
(Millions of Dollars)	2024	2023	Variance
FINANCING ACTIVITIES
Net issuance (payment) of short-term debt	$164	$(1,087)	$1,251
Issuance of long-term debt	1,400	500	900
Retirement of long-term debt	—	(60)	60
Debt issuance costs	(23)	(4)	(19)
Common stock dividends	(549)	(562)	13

Issuance of common shares for stock plans	30	27	3
Repurchase of common shares	—	(1,000)	1,000
Distribution to noncontrolling interest	—	(4)	4


NET CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES	$1,022	$(2,190)	$3,212

Net cash flows from financing activities for Con Edison were $3,212 million higher for the six months ended June 30, 2024 compared with the 2023 period and reflect the following transactions:

an increase in the net issuance of short-term debt of $1,251 million;
the repurchase of common shares of $1,000 million in the 2023 period;
an increase in proceeds in long-term debt of $900 million. In May, CECONY issued $1,400 million in aggregate of debentures, the net proceeds from which were used to repay short-term borrowings and for other general corporate purposes. See Note C to the Second Quarter Financial Statements; and
a decrease in common stock dividends of $13 million.

The following table summarizes key components of CECONY’s financing cash flows.


	For the Six Months Ended June 30,
(Millions of Dollars)	2024	2023	Variance
FINANCING ACTIVITIES
Net issuance (payment) of short-term debt	$64	$(354)	$418
Issuance of long-term debt	1,400	500	900
Debt issuance costs	(23)	(5)	(18)
Capital contribution by Con Edison	80	1,701	(1,621)
Dividend to Con Edison	(536)	(528)	(8)
NET CASH FLOWS FROM FINANCING ACTIVITIES	$985	$1,314	$(329)

Net cash flows from financing activities for CECONY were $329 million lower for the six months ended June 30, 2024 compared with the 2023 period and reflects the following transactions:

a decrease in contributed equity from Con Edison of $1,621 million.

Offset in part by

an increase in proceeds in long-term debt of ($900 million) as described above; and
an increase in the net issuance of short-term debt of ($418 million).

Cash flows from financing activities of the Companies also reflect commercial paper issuances and repayments. The commercial paper amounts outstanding at June 30, 2024 and 2023 and the average daily balances for the six months ended June 30, 2024 and 2023 for Con Edison and CECONY were as follows:


	2024				2023
(Millions of Dollars, except Weighted Average Yield)	Outstanding at June 30,		Daily average		Outstanding at June 30,		Daily average
Con Edison	$2,452		$1,840		$1,953		$1,172
CECONY	$1,967		$1,406		$1,946		$1,128
Weighted average yield	5.5	%	5.5	%	5.4	%	4.9	%

Capital Resources

For each of the Companies, the common equity ratio at June 30, 2024 and December 31, 2023 was:


	Common Equity Ratio (Percent of total capitalization)
	June 30, 2024	December 31, 2023
Con Edison	48.0	49.1
CECONY	46.9	47.9

Assets, Liabilities and Equity

The Companies' assets, liabilities, and equity at June 30, 2024 and December 31, 2023 are summarized as follows.


	CECONY		O&R		Con Edison Transmission		Other (a)		Con Edison (b)
(Millions of Dollars)	2024	2023	2024	2023	2024	2023	2024	2023	2024	2023
ASSETS
Current assets	$5,974	$5,981	$325	$302	$13	$25	$175	$229	$6,487	$6,537
Investments	653	608	23	22	405	365	—	4	1,081	999
Net plant	47,572	46,648	3,037	2,943	16	17	—	—	50,625	49,608
Other noncurrent assets	8,876	8,363	425	408	7	7	419	409	9,727	9,187
Total Assets	$63,075	$61,600	$3,810	$3,675	$441	$414	$594	$642	$67,920	$66,331

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities	$5,348	$5,694	$463	$349	$7	$5	$398	$414	$6,216	$6,462
Noncurrent liabilities	15,963	15,950	1,145	1,146	(74)	(76)	(201)	(236)	16,833	16,784
Long-term debt	22,194	20,810	1,118	1,118	—	—	(1)	(1)	23,311	21,927
Equity	19,570	19,146	1,084	1,062	508	485	398	465	21,560	21,158
Total Liabilities and Equity	$63,075	$61,600	$3,810	$3,675	$441	$414	$594	$642	$67,920	$66,331

(a) Other includes the parent company, Con Edison’s tax equity investments, the deferred project held for sale and consolidation adjustments. See Note R to the Second Quarter Financial Statements.

(b) Represents the consolidated results of operations of Con Edison and its businesses.

CECONY

Net plant at June 30, 2024 was $924 million higher than at December 31, 2023. The change in net plant primarily reflects an increase in electric ($1,235 million), gas ($372 million) and steam ($61 million) plant balances and an increase in construction work in progress ($242 million), offset in part by an increase in accumulated depreciation ($822 million) and a decrease in the general ($164 million) plant balance.

Other noncurrent assets at June 30, 2024 were $513 million higher than at December 31, 2023. The change in other noncurrent assets primarily reflects an increase in the regulatory assets for legacy meters ($413 million), COVID-19 pandemic deferrals ($57 million), revenue taxes ($29 million) and system peak reduction and energy efficiency programs ($27 million). The change in regulatory assets also reflects the period's amortization of accounting costs. See Note B to the Second Quarter Financial Statements.

Current liabilities at June 30, 2024 were $346 million lower than at December 31, 2023. The change in current liabilities primarily reflects a decrease in accounts payable ($258 million) and a decrease in the fair value of derivative liabilities ($108 million), offset in part by an increase in notes payable ($64 million).

Equity at June 30, 2024 was $424 million higher than at December 31, 2023. The change in equity primarily reflects net income for the six months ended June 30, 2024 ($880 million) and capital contributions from Con Edison ($80 million) in 2024, offset in part by common stock dividends to Con Edison ($536 million) in 2024.

O&R

Current assets at June 30, 2024 were $23 million higher than at December 31, 2023. The change in current assets primarily reflects an increase in accrued unbilled revenue ($22 million) and an increase in accounts receivable, net of allowance for uncollectible accounts ($14 million) (see "Aged Accounts Receivable Balances,” above), offset in part by a decrease in the revenue decoupling mechanism receivable ($13 million).

Net plant at June 30, 2024 was $94 million higher than at December 31, 2023. The change in net plant primarily reflects an increase in electric ($50 million), gas ($40 million) and general ($22 million) plant balances and an increase in construction work in progress ($27 million), offset in part by an increase in accumulated depreciation ($45 million).

Noncurrent assets at June 30, 2024 were $17 million higher than at December 31, 2023. The change in noncurrent assets primarily reflects an increases in regulatory assets ($25 million) and the fair value of derivative assets ($2 million), offset partially by a decrease in pension and retiree benefits ($14 million).

Current liabilities at June 30, 2024 were $114 million higher than at December 31, 2023. The change in current liabilities primarily reflects an increase in notes payable ($100 million) and an increase in the regulatory liabilities ($11 million).

Equity at June 30, 2024 was $22 million higher than at December 31, 2023. The change in equity primarily reflects net income for the six months ended June 30, 2024 ($40 million) and capital contributions from Con Edison ($20 million) in 2024, offset in part by common stock dividends to Con Edison ($34 million) in 2024 and a decrease in other comprehensive income ($4 million).

Con Edison Transmission

Current assets at June 30, 2024 were $12 million lower than at December 31, 2023. The change in current assets primarily reflects an investment in New York Transco ($13 million).

Investments at June 30, 2024 were $40 million higher than at December 31, 2023. The increase in investments reflects additional investment and investment income in New York Transco ($27 million) and investment income from MVP ($13 million).

Equity at June 30, 2024 was $23 million higher than at December 31, 2023. The change in equity primarily reflects Con Edison Transmission's earnings ($24 million), offset by dividends to Con Edison ($2 million).

Environmental Matters

Clean Energy Future

New York State’s Climate Leadership and Community Protection Act

In March 2024, O&R filed a petition with FERC to add a formula rate to the NYISO tariff to enable O&R to recover the costs of, and a return on investment for, two types of projects: (1) local transmission upgrades determined by the NYSPSC to be necessary or appropriate to meet the CLCPA goals of New York State and eligible for recovery under the FERC-approved cost sharing recovery agreement that socializes the costs statewide and (2) any regulated transmission projects (or portions thereof) eligible for recovery under the NYISO’s public policy transmission planning process. For NYSPSC-approved local transmission upgrades, O&R proposed the return on equity to be the lower of the NYSPSC-determined rates or 11.20 percent. For NYISO projects, O&R proposed a base return on equity of 10.7 percent, plus the 50 basis-point adder for participation in a Regional Transmission Organization, for a total return on equity of 11.20 percent. In May 2024, the FERC issued an order approving O&R’s formula rate filing but set the base return on equity for hearing and settlement and directed the parties to file initial briefs as to whether O&R is eligible for the 50-basis-point return on equity adder. In June 2024, O&R filed its initial brief with the FERC.

In May 2024, CECONY filed its inaugural annual Investing in Disadvantaged Communities Report, as required by the NYSPSC. The report summarizes the impacts of CECONY's investments in disadvantaged communities (DACs) within the company’s service territory, based on 2023 data. The report includes, among other things, building electrification and energy efficiency initiatives, as well as data related to the company’s long-running electric and gas operations. DAC locations were identified by New York State in connection with the implementation process for the CLCPA.

Offshore Wind

In February 2024, NYSERDA announced that it selected two offshore wind projects for contract negotiations representing 1,734 MW of energy by 2026. One of the conditional awards, Empire Wind 1, is expected to connect 810 MW of offshore wind electricity to the New York City electrical grid at CECONY’s Gowanus substation. In March 2024, FERC approved the interconnection agreement among Empire Offshore Wind, LLC, the NYISO, and CECONY. In May 2024, the NYSPSC approved a certificate of public convenience and necessity to allow

construction of Empire Wind 1 to begin.

Energy Storage

In June 2024, the NYSPSC issued an order approving a roadmap that established an energy storage goal of up to 6,000 MW by 2030. The original proposal issued by the NYSDPS and NYSERDA included the recommendation that New York State’s utilities study the potential of energy storage to provide non-market transmission and distribution services and identify services that are cost-effective compared to traditional alternatives.

Thermal Energy Networks

In April 2024, the NYSDPS approved CECONY’s and O&R’s December 2023 Stage 1 filings (Project Scope, Feasibility, and Stakeholder Engagement) for utility-scale thermal energy network pilot projects. The NYSDPS also confirmed CECONY and O&R are authorized to incur costs of $17.1 million and $4.6 million, respectively, through the completion of Stage 2 (Pilot Project Engineering Design and Customer Protection Plan). These projected costs are within the budgets proposed by CECONY and O&R of $255 million and $46 million, respectively. The remaining proposed budget amounts are subject to approval by the NYSPSC. In May 2024, CECONY filed a petition with the NYSDPS seeking $6 million to complete Stage 2 of its utility thermal energy network pilot projects, in addition to the $17.1 million described above.

Superfund

Gowanus Canal

Certain federal agencies and the NYSDEC have previously notified potentially responsible parties (PRPs), including CECONY, of their intent to perform a natural resource damage assessment for the Gowanus Canal Superfund Site. In March 2024, CECONY received a notice that the U.S. Fish and Wildlife Service, the NYSDEC, and the National Oceanic and Atmospheric Administration (collectively, the “Trustees”) published a Draft Natural Resource Assessment Plan, indicating that the Trustees are conducting a natural resource damage assessment to determine, among other things, the appropriate amount and type of projects needed to restore, replace, or acquire the equivalent of injured natural resources at the Gowanus Canal Superfund Site. In June 2024, the EPA issued an order amending its January 2020 order and that requires six PRPs, including CECONY, to initiate remedial action work in the middle segment of the Gowanus Canal Superfund Site. The EPA estimated the cost of this work would be $369 million (although actual costs may be significantly higher) and has indicated the work would take several years to complete. CECONY is unable to estimate its exposure to liability for the Gowanus Canal Superfund Site.

Other Environmental Matters

In April 2024, a CECONY feeder in the Bronx leaked resulting in a release of approximately one thousand gallons of dielectric fluid (a non-toxic synthetic compound similar to mineral oil), a portion of which migrated to a nearby sewer system and a sheen was seen in the Bronx River. CECONY stopped the feeder leak and began the cleanup on the same day the discharge occurred. CECONY, with assistance from the NYSDEC, also placed booms in the Bronx River at various locations to collect any fluid that made it to the river through the sewer system. CECONY is addressing the remaining sheen on the river, and also voluntarily cleaned up a significant amount of debris and trash in the area of the oil sheen. In April 2024, CECONY also discovered the presence of oil in the Hudson River within the permanent containment boom surrounding Pier 98 that likely originated from an internal leak of approximately 4,400 gallons of oil at CECONY’s steam generating plant on 59th Street in Manhattan. CECONY immediately installed an additional containment boom and an absorbent boom in the Hudson River and has estimated that 72 gallons of oil was released to the river. The U.S. Coast Guard, the New York City Department of Environmental Protection, and the NYSDEC were notified and oversaw the clean-up operations. The costs associated with these matters are not expected to have a material adverse effect on CECONY’s financial condition, results of operations or liquidity. In connection with the incidents, CECONY may incur monetary sanctions from government agencies of more than $0.3 million for violations of certain provisions regulating the discharge of materials into, and for the protection of, the environment.

For additional information about the Companies’ environmental matters, see Note G to the Second Quarter Financial Statements.

Con Edison Transmission

Con Edison Transmission owns a 45.7 percent interest in New York Transco that is comprised of: a 45.7 percent interest in New York Transco's Transmission Owner Transmission Solutions (TOTS) projects; a 45.7 percent interest in New York Transco’s New York Energy Solution (NYES) project; and a 41.7 percent interest in New York Transco’s share of the Propel NY Energy project. Con Edison Transmission also owns a 71.2 percent interest in Honeoye Storage Corporation (Honeoye) and its interest in Mountain Valley Pipeline, LLC (MVP) is expected to be approximately 6.7 percent.

In June 2024, construction of the Dover Station, an additional network upgrade to support the NYES project, resumed following the reissuance of its permits. Construction is anticipated to be completed by June 2025.

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 construction expenditures of the Utilities and maturing debt securities, and variable-rate debt. Con Edison 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 June 30, 2024, a 10 percent increase in interest rates applicable to its variable rate debt would result in an increase in annual interest expense of $15 million and $13 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 Second Quarter Financial Statements.

Con Edison estimates that, as of June 30, 2024, a 10 percent decline in market prices would result in a decline in fair value of $155 million for the derivative instruments used by the Utilities to hedge purchases of electricity and gas, of which $142 million is for CECONY and $13 million is for O&R. As of June 30, 2023, Con Edison estimated that a 10 percent decline in market prices would result in a decline in fair value of $172 million for the derivative instruments used by the Utilities to hedge purchases of electricity and gas, of which $162 million is for CECONY and $10 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.

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 Second Quarter Financial Statements.

The Companies’ current investment policy for pension plan assets includes investment targets of 26 to 30 percent equity securities, 42 to 60 percent debt securities and 14 to 30 percent alternatives. At June 30, 2024, the pension plan investments consisted of 27 percent equity securities, 50 percent debt securities and 23 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 Second Quarter Financial Statements.

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