Cover and table of contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒			Quarterly Report Pursuant To Section 13 or 15(d) of the Securities Exchange Act of 1934

FOR THE QUARTERLY PERIOD ENDED September 30, 2024

OR

☐			Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from to

Commission File Number						Exact name of registrant as specified in its charter and principal executive office address and telephone number																		State of Incorporation						I.R.S. Employer ID. Number
1-14514						Consolidated Edison, Inc.																		New York						13-3965100
						4 Irving Place,						New York,			New York			10003
						(212)			460-4600
1-01217						Consolidated Edison Company of New York, Inc.																		New York						13-5009340
						4 Irving Place,						New York,			New York			10003
						(212)			460-4600

Securities Registered Pursuant to Section 12(b) of the Act:

Title of each class						Trading Symbol						Name of each exchange on which registered
Consolidated Edison, Inc.						ED						New York Stock Exchange
Common Shares ($.10 par value)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Consolidated Edison, Inc. (Con Edison)			Yes			☒			No ☐
Consolidated Edison Company of New York, Inc. (CECONY)			Yes			☒			No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Con Edison			Yes			☒			No ☐
CECONY			Yes			☒			No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Con Edison
Large accelerated filer			☒						Accelerated filer ☐						Non-accelerated filer			☐
Smaller reporting company						☐			Emerging growth company			☐
CECONY
Large accelerated filer			☐						Accelerated filer ☐						Non-accelerated filer			☒
Smaller reporting company						☐			Emerging growth company			☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Con Edison			Yes			☐			No			☒
CECONY			Yes			☐			No			☒

As of October 31, 2024, Con Edison had outstanding 346,412,190 Common Shares ($.10 par value). All of the outstanding common equity of CECONY is held by Con Edison.

Filing Format

This Quarterly Report on Form 10-Q is a combined report being filed separately by two different registrants: Consolidated Edison, Inc. (Con Edison) and Consolidated Edison Company of New York, Inc. (CECONY). CECONY is a wholly-owned subsidiary of Con Edison and, as such, the information in this report about CECONY also applies to Con Edison. As used in this report, the term the “Companies” refers to Con Edison and CECONY. However, CECONY makes no representation as to the information contained in this report relating to Con Edison or the subsidiaries of Con Edison other than itself.

Glossary of Terms

The following is a glossary of abbreviations or acronyms that are used in the Companies’ SEC reports:

Con Edison Companies
Con Edison						Consolidated Edison, Inc.
CECONY						Consolidated Edison Company of New York, Inc.
Clean Energy Businesses						Con Edison Clean Energy Businesses, Inc., a former subsidiary of Con Edison
Con Edison Transmission						Con Edison Transmission, Inc., together with its subsidiaries
O&R						Orange and Rockland Utilities, Inc.
RECO						Rockland Electric Company
The Companies						Con Edison and CECONY
The Utilities						CECONY and O&R
Regulatory Agencies, Government Agencies and Other Organizations
FASB						Financial Accounting Standards Board
FERC						Federal Energy Regulatory Commission
IRS						Internal Revenue Service
NJBPU						New Jersey Board of Public Utilities
NYISO						New York Independent System Operator
NYPA						New York Power Authority
NYSDEC						New York State Department of Environmental Conservation
NYSDPS						New York State Department of Public Service
NYSPSC						New York State Public Service Commission
SEC						U.S. Securities and Exchange Commission
Accounting
AFUDC						Allowance for Funds Used During Construction
ASC						Accounting Standards Codification Topic
ASU						Accounting Standards Update
GAAP						Generally Accepted Accounting Principles in the United States of America
HLBV						Hypothetical Liquidation at Book Value
NOL						Net Operating Loss
OCI						Other Comprehensive Income
VIE						Variable Interest Entity

Environmental
GHG						Greenhouse gases
Superfund						Federal Comprehensive Environmental Response, Compensation and Liability Act of 1980 and similar state statutes
Units of Measure
Dt						Dekatherm
kWh						Kilowatt-hour
MMlb						Million pounds
MW						Megawatt or thousand kilowatts
MWh						Megawatt hour
Other
COVID-19						Coronavirus Disease 2019 and any mutations or variants thereof
Third Quarter Financial Statements						Consolidated financial statements included in the Companies' Quarterly Report on Form 10-Q for the quarterly period ended September 30 of the current year
IRA						The federal Inflation Reduction Act, as enacted on August 16, 2022
TCJA						The federal Tax Cuts and Jobs Act of 2017, as enacted on December 22, 2017

TABLE OF CONTENTS

						PAGE
PART I—Financial Information
ITEM 1			Financial Statements (Unaudited)
			Con Edison
			Consolidated Income Statement			7
			Consolidated Statement of Comprehensive Income			8
			Consolidated Statement of Cash Flows			9
			Consolidated Balance Sheet			11
			Consolidated Statement of Equity			13
			CECONY
			Consolidated Income Statement			14
			Consolidated Statement of Comprehensive Income			15
			Consolidated Statement of Cash Flows			16
			Consolidated Balance Sheet			17
			Consolidated Statement of Shareholder’s Equity			19
			Notes to the Financial Statements (Unaudited)			20
ITEM 2			Management’s Discussion and Analysis of Financial Condition and Results of Operations			48
ITEM 3			Quantitative and Qualitative Disclosures About Market Risk			81
ITEM 4			Controls and Procedures			81
PART II—Other Information						82
ITEM 1			Legal Proceedings			82
ITEM 1A			Risk Factors			82
ITEM 6			Exhibits			82
			Signatures			83

FORWARD-LOOKING STATEMENTS

This report contains forward-looking statements that are intended to qualify for the safe-harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are statements of future expectations and not facts. Words such as “forecasts,” “expects,” “estimates,” “anticipates,” “intends,” “believes,” “plans,” “will,” “target,” “guidance,” “potential,” "goal," “consider” and similar expressions identify forward-looking statements. The forward-looking statements reflect information available and assumptions at the time the statements are made, and accordingly speak only as of that time. Actual results or developments might differ materially from those included in the forward-looking statements because of various factors such as those identified in reports the Companies have filed with the Securities and Exchange Commission, including, but not limited to:

• the Companies are extensively regulated and are subject to substantial penalties;

• the Utilities’ rate plans may not provide a reasonable return;

• the Companies may be adversely affected by changes to the Utilities’ rate plans;

• the failure of, or damage to, the Companies’ facilities could adversely affect the Companies;

• a cyber attack could adversely affect the Companies;

• the failure of processes and systems, the failure to retain and attract employees and contractors, and their negative performance could adversely affect the Companies;

• the Companies are exposed to risks from the environmental consequences of their operations, including increased costs related to climate change;

• Con Edison’s ability to pay dividends or interest depends on dividends from its subsidiaries;

• changes to tax laws could adversely affect the Companies;

• the Companies require access to capital markets to satisfy funding requirements;

• a disruption in the wholesale energy markets, increased commodity costs or failure by an energy supplier or customer could adversely affect the Companies;

• the Companies face risks related to health epidemics and other outbreaks;

• the Companies’ strategies may not be effective to address changes in the external business environment;

• the Companies face risks related to supply chain disruptions and inflation; and

• the Companies also face other risks that are beyond their control.

This list of factors is not all-inclusive because it is not possible to predict all factors that could cause actual results or developments to differ from the forward-looking statements. The Companies assume no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Consolidated Edison, Inc.

CONSOLIDATED INCOME STATEMENT (UNAUDITED)

			For the Three Months Ended September 30,						For the Nine Months Ended September 30,
(Millions of Dollars/Except Share Data)			2024			2023			2024			2023
OPERATING REVENUES
Electric			$3,669			$3,469			$8,849			$8,309
Gas			373			353			2,312			2,354
Steam			49			49			423			425
Non-utility			1			1			3			131
TOTAL OPERATING REVENUES			4,092			3,872			11,587			11,219
OPERATING EXPENSES
Purchased power			743			796			1,942			1,993
Fuel			27			34			130			241
Gas purchased for resale			67			73			402			640
Other operations and maintenance			986			933			2,841			2,678
Depreciation and amortization			550			512			1,601			1,506
Taxes, other than income taxes			857			801			2,448			2,282
TOTAL OPERATING EXPENSES			3,230			3,149			9,364			9,340
Gain (Loss) on sale of the Clean Energy Businesses			—			(1)			(30)			866
OPERATING INCOME			862			722			2,193			2,745
OTHER INCOME (DEDUCTIONS)
Investment income			17			8			46			23
Other income			157			210			476			625
Allowance for equity funds used during construction			8			7			29			20
Other deductions			(17)			(18)			(44)			(57)
TOTAL OTHER INCOME			165			207			507			611
INCOME BEFORE INTEREST AND INCOME TAX EXPENSE			1,027			929			2,700			3,356
INTEREST EXPENSE (INCOME)
Interest on long-term debt			275			234			797			719
Other interest expense			47			39			131			78
Allowance for borrowed funds used during construction			(16)			(14)			(45)			(39)
NET INTEREST EXPENSE			306			259			883			758
INCOME BEFORE INCOME TAX EXPENSE			721			670			1,817			2,598
INCOME TAX EXPENSE			133			144			307			416
NET INCOME			588			526			1,510			2,182
Loss attributable to non-controlling interest			—			—			—			(3)
NET INCOME FOR COMMON STOCK			$588			$526			$1,510			$2,185
Net income per common share—basic			$1.70			$1.53			$4.37			$6.27
Net income per common share—diluted			$1.69			$1.52			$4.35			$6.24
AVERAGE NUMBER OF SHARES OUTSTANDING—BASIC (IN MILLIONS)			346.2			345.0			345.9			348.4
AVERAGE NUMBER OF SHARES OUTSTANDING—DILUTED (IN MILLIONS)			347.5			346.5			347.2			349.9

The accompanying notes are an integral part of these financial statements.

Consolidated Edison, Inc.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)

			Three Months Ended September 30,						Nine Months Ended September 30,
(Millions of Dollars)			2024			2023			2024			2023
NET INCOME			$588			$526			$1,510			$2,182
LOSS ATTRIBUTABLE TO NON-CONTROLLING INTEREST			—			—			—			3
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAXES
Pension and other postretirement benefit plan liability adjustments, net of taxes			—			—			(4)			3
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAXES			—			—			(4)			3
COMPREHENSIVE INCOME			$588			$526			$1,506			$2,188

The accompanying notes are an integral part of these financial statements.

Consolidated Edison, Inc.

CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)

			For the Nine Months Ended September 30,
(Millions of Dollars)			2024			2023
OPERATING ACTIVITIES
Net income			$1,510			$2,182
PRINCIPAL NON-CASH CHARGES (CREDITS) TO INCOME
Depreciation and amortization			1,601			1,506
Deferred income taxes			448			99
Rate case amortization and accruals			174			67
Net derivative losses			—			11
Pre-tax loss (gain) on sale of the Clean Energy Businesses			30			(866)
Other non-cash items, net			(96)			(108)
CHANGES IN ASSETS AND LIABILITIES
Accounts receivable – customers, net			(129)			133
Materials and supplies, including fuel oil and gas in storage			(3)			53
Revenue decoupling mechanism receivable			27			(130)
Other receivables, net and other current assets			209			165
Unbilled revenue and net unbilled revenue deferrals			31			78
Prepayments			(902)			(841)
Accounts payable			(199)			(573)
Pensions and retiree benefits obligations, net			(162)			(150)
Pensions and retiree benefits contributions			(21)			(30)
Accrued taxes			(14)			(1)
Accrued interest			159			108
Superfund and environmental remediation costs			(27)			(7)
Distributions from equity investments			15			23
Deferred charges, noncurrent assets, leases, net and other regulatory assets			(677)			(624)
Deferred credits, noncurrent liabilities and other regulatory liabilities			400			(24)
Other current liabilities			(70)			110
NET CASH FLOWS FROM OPERATING ACTIVITIES			2,304			1,181
INVESTING ACTIVITIES
Utility construction expenditures			(3,533)			(3,097)
Cost of removal less salvage			(335)			(289)
Non-utility construction expenditures			—			(141)
Proceeds from sale of the Clean Energy Businesses, net of cash and cash equivalents sold			—			3,927
Other investing activities			(21)			(48)
NET CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES			(3,889)			352
FINANCING ACTIVITIES
Net payment of short-term debt			(229)			(1,160)
Issuance of long-term debt			1,525			500
Retirement of long-term debt			—			(60)
Debt issuance costs			(25)			(5)
Common stock dividends			(824)			(829)
Issuance of common shares for stock plans			45			41
Repurchase of common shares			—			(1,000)
Distribution to noncontrolling interest			—			(4)
NET CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES			492			(2,517)
CASH, TEMPORARY CASH INVESTMENTS, AND RESTRICTED CASH:
NET CHANGE FOR THE PERIOD			(1,093)			(984)
BALANCE AT BEGINNING OF PERIOD			1,195			1,530
BALANCE AT END OF PERIOD			$102			$546
LESS: CHANGE IN CASH AND RESTRICTED CASH BALANCES HELD FOR SALE			9			6
BALANCE AT END OF PERIOD EXCLUDING HELD FOR SALE			$93			$540
SUPPLEMENTAL DISCLOSURE OF CASH INFORMATION
Cash paid during the period for:
Interest, net of capitalized interest			$657			$624
Income taxes			$6			$360

SUPPLEMENTAL DISCLOSURE OF NON-CASH INFORMATION
Construction expenditures in accounts payable			$496			$419
Issuance of common shares for dividend reinvestment			$37			$20
Equipment acquired but unpaid as of end of period			$6			$11

The accompanying notes are an integral part of these financial statements.

Consolidated Edison, Inc.

CONSOLIDATED BALANCE SHEET (UNAUDITED)

(Millions of Dollars)			September 30, 2024			December 31, 2023
ASSETS
CURRENT ASSETS
Cash and temporary cash investments			$93			$1,189
Accounts receivable – customers, net allowance for uncollectible accounts of $461 and $360 in 2024 and 2023, respectively			2,567			2,418
Other receivables, net allowance for uncollectible accounts of $24 and $13 in 2024 and 2023, respectively			227			444
Accrued unbilled revenue			617			722
Fuel oil, gas in storage, materials and supplies, at average cost			472			469
Prepayments			1,371			470
Regulatory assets			224			281
Revenue decoupling mechanism receivable			188			203
Fair value of derivative assets			15			52
Assets held for sale			167			163
Other current assets			139			126
TOTAL CURRENT ASSETS			6,080			6,537
INVESTMENTS			1,136			999
UTILITY PLANT, AT ORIGINAL COST
Electric			40,703			39,071
Gas			14,910			14,318
Steam			3,150			3,085
General			4,760			4,835
TOTAL			63,523			61,309
Less: Accumulated depreciation			15,166			14,157
Net			48,357			47,152
Construction work in progress			2,987			2,442
NET UTILITY PLANT			51,344			49,594
NON-UTILITY PLANT
Non-utility property, net accumulated depreciation of $24 in 2024 and 2023			12			13
Construction work in progress			1			1
NET PLANT			51,357			49,608
OTHER NONCURRENT ASSETS
Goodwill			408			408
Regulatory assets			5,317			4,607
Pension and retiree benefits			3,440			3,275
Operating lease right-of-use asset			499			533
Fair value of derivative assets			21			48
Other deferred charges and noncurrent assets			387			316
TOTAL OTHER NONCURRENT ASSETS			10,072			9,187
TOTAL ASSETS			$68,645			$66,331

The accompanying notes are an integral part of these financial statements.

Consolidated Edison, Inc.

CONSOLIDATED BALANCE SHEET (UNAUDITED)

(Millions of Dollars)			September 30, 2024			December 31, 2023
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Long-term debt due within one year			$250			$250
Notes payable			2,059			2,288
Accounts payable			1,472			1,775
Customer deposits			434			396
Accrued taxes			63			73
Accrued interest			330			170
Accrued wages			132			125
Fair value of derivative liabilities			109			193
Regulatory liabilities			143			145
System benefit charge			450			444
Operating lease liabilities			116			116
Liabilities held for sale			80			76
Other current liabilities			389			411
TOTAL CURRENT LIABILITIES			6,027			6,462
NONCURRENT LIABILITIES
Provision for injuries and damages			185			188
Pensions and retiree benefits			628			592
Superfund and other environmental costs			1,101			1,118
Asset retirement obligations			538			522
Fair value of derivative liabilities			120			121
Deferred income taxes and unamortized investment tax credits			8,793			8,069
Operating lease liabilities			430			429
Regulatory liabilities			5,037			5,328
Other deferred credits and noncurrent liabilities			450			417
TOTAL NONCURRENT LIABILITIES			17,282			16,784
LONG-TERM DEBT			23,438			21,927
COMMITMENTS, CONTINGENCIES, AND GUARANTEES (Note B, Note G, and Note H)
COMMON SHAREHOLDERS' EQUITY (See Statement of Common Shareholders' Equity)			21,898			21,158
TOTAL LIABILITIES AND EQUITY			$68,645			$66,331

The accompanying notes are an integral part of these financial statements.

Consolidated Edison, Inc.

CONSOLIDATED STATEMENT OF EQUITY (UNAUDITED)

(In Millions, except for dividends per share)			Common Stock						Additional Paid-In Capital			Retained Earnings			Treasury Stock						Capital Stock Expense			Accumulated Other Comprehensive Income (Loss)			Non- controlling Interest			Total
Shares			Amount			Shares			Amount
BALANCE AS OF DECEMBER 31, 2022			355			$37			$9,803			$11,985			23			$(1,038)			$(122)			$22			$202			$20,889
Net income (loss)												1,433															(3)			1,430
Common stock dividends ($0.81 per share)												(288)																		(288)
Issuance of common shares for stock plans									15																					15
Common stock repurchases			(9)						(200)						9			(808)												(1,008)
Other comprehensive income																								4						4
Distributions to noncontrolling interests																											(4)			(4)
Disposal of the Clean Energy Businesses																											(195)			(195)
BALANCE AS OF MARCH 31, 2023			346			$37			$9,618			$13,130			32			$(1,846)			$(122)			$26			$—			$20,843
Net income												226																		226
Common stock dividends ($0.81 per share)												(281)																		(281)
Issuance of common shares for stock plans									20																					20
Common stock repurchases			(2)						169						2			(171)												(2)
Other comprehensive loss																								(1)						(1)
BALANCE AS OF JUNE 30, 2023			344			$37			$9,807			$13,075			34			$(2,017)			$(122)			$25			$—			$20,805
Net income												526																		526
Common stock dividends ($0.81 per share)												(280)																		(280)
Issuance of common shares for stock plans			1						27																					27
BALANCE AS OF SEPTEMBER 30, 2023			345			$37			$9,834			$13,321			34			$(2,017)			$(122)			$25			$—			$21,078
BALANCE AS OF DECEMBER 31, 2023			345			$37			$9,861			$13,377			34			$(2,017)			$(122)			$22			$—			$21,158
Net income												720																		720
Common stock dividends ($0.83 per share)												(287)																		(287)
Issuance of common shares for stock plans			1			1			27																					28
Other comprehensive loss																								(4)						(4)
BALANCE AS OF MARCH 31, 2024			346			$38			$9,888			$13,810			34			$(2,017)			$(122)			$18			$—			$21,615
Net income												202																		202
Common stock dividends ($0.83 per share)												(287)																		(287)
Issuance of common shares for stock plans									30																					30
BALANCE AS OF JUNE 30, 2024			346			$38			$9,918			$13,725			34			$(2,017)			$(122)			$18			$—			$21,560
Net income												588																		588
Common stock dividends ($0.83 per share)												(287)																		(287)
Issuance of common shares for stock plans									26																					26
Stock awards									11																					11
BALANCE AS OF SEPTEMBER 30, 2024			346			$38			$9,955			$14,026			34			$(2,017)			$(122)			$18			$—			$21,898

The accompanying notes are an integral part of these financial statements.

Consolidated Edison Company of New York, Inc.

CONSOLIDATED INCOME STATEMENT (UNAUDITED)

			For the Three Months Ended September 30,						For the Nine Months Ended September 30,
(Millions of Dollars)			2024			2023			2024			2023
OPERATING REVENUES
Electric			$3,376			$3,223			$8,188			$7,722
Gas			337			318			2,119			2,140
Steam			49			49			423			425
TOTAL OPERATING REVENUES			3,762			3,590			10,730			10,287
OPERATING EXPENSES
Purchased power			642			719			1,718			1,802
Fuel			27			34			130			241
Gas purchased for resale			59			62			352			518
Other operations and maintenance			880			834			2,539			2,341
Depreciation and amortization			520			485			1,512			1,428
Taxes, other than income taxes			831			777			2,372			2,207
TOTAL OPERATING EXPENSES			2,959			2,911			8,623			8,537
OPERATING INCOME			803			679			2,107			1,750
OTHER INCOME (DEDUCTIONS)
Investment and other income			149			191			452			566
Allowance for equity funds used during construction			7			6			25			17
Other deductions			(18)			(13)			(41)			(33)
TOTAL OTHER INCOME			138			184			436			550
INCOME BEFORE INTEREST AND INCOME TAX EXPENSE			941			863			2,543			2,300
INTEREST EXPENSE (INCOME)
Interest on long-term debt			262			220			757			656
Other interest expense			38			32			108			75
Allowance for borrowed funds used during construction			(15)			(13)			(40)			(36)
NET INTEREST EXPENSE			285			239			825			695
INCOME BEFORE INCOME TAX EXPENSE			656			624			1,718			1,605
INCOME TAX EXPENSE			119			109			301			297
NET INCOME			$537			$515			$1,417			$1,308

The accompanying notes are an integral part of these financial statements.

Consolidated Edison Company of New York, Inc.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)

			For the Three Months Ended September 30,						For the Nine Months Ended September 30,
(Millions of Dollars)			2024			2023			2024			2023
NET INCOME			$537			$515			$1,417			$1,308
OTHER COMPREHENSIVE LOSS, NET OF TAXES
Pension and other postretirement benefit plan liability adjustments, net of taxes			—			—			—			(1)
TOTAL OTHER COMPREHENSIVE LOSS, NET OF TAXES			—			—			—			(1)
COMPREHENSIVE INCOME			$537			$515			$1,417			$1,307

The accompanying notes are an integral part of these financial statements.

Consolidated Edison Company of New York, Inc.

CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)

			For the Nine Months Ended September 30,
(Millions of Dollars)			2024			2023
OPERATING ACTIVITIES
Net income			$1,417			$1,308
PRINCIPAL NON-CASH CHARGES (CREDITS) TO INCOME
Depreciation and amortization			1,512			1,428
Deferred income taxes			553			674
Rate case amortization and accruals			156			52
Other non-cash items, net			(45)			(95)
CHANGES IN ASSETS AND LIABILITIES
Accounts receivable – customers, net			(126)			140
Materials and supplies, including fuel oil and gas in storage			1			36
Revenue decoupling mechanism receivable			26			(128)
Other receivables, net and other current assets			146			(95)
Unbilled revenue and net unbilled revenue deferrals			37			77
Accounts receivable to affiliated companies			(335)			(400)
Prepayments			(714)			(699)
Accounts payable			(206)			(408)
Accounts payable from affiliated companies			2			7
Pensions and retiree benefits obligations, net			(173)			(149)
Pensions and retiree benefits contributions			(21)			(28)
Superfund and environmental remediation costs			(27)			(8)
Accrued taxes			(7)			(42)
Accrued taxes to affiliated companies			—			(89)
Accrued interest			156			128
Deferred charges, noncurrent assets, leases, net and other regulatory assets			(562)			(610)
Deferred credits, noncurrent liabilities and other regulatory liabilities			363			(7)
Other current liabilities			(66)			129
NET CASH FLOWS FROM OPERATING ACTIVITIES			2,087			1,221
INVESTING ACTIVITIES
Utility construction expenditures			(3,312)			(2,894)
Cost of removal less salvage			(330)			(284)
NET CASH FLOWS USED IN INVESTING ACTIVITIES			(3,642)			(3,178)
FINANCING ACTIVITIES
Net payment of short-term debt			(227)			(502)
Issuance of long-term debt			1,400			500
Debt issuance costs			(24)			(5)
Capital contribution by Con Edison			105			1,720
Dividend to Con Edison			(804)			(792)
NET CASH FLOWS FROM FINANCING ACTIVITIES			450			921
CASH AND TEMPORARY CASH INVESTMENTS
NET CHANGE FOR THE PERIOD			(1,105)			(1,036)
BALANCE AT BEGINNING OF PERIOD			1,138			1,056
BALANCE AT END OF PERIOD			$33			$20
SUPPLEMENTAL DISCLOSURE OF CASH INFORMATION
Cash paid during the period for:
Interest, net of capitalized interest			$607			$538
Income taxes			$64			$90
SUPPLEMENTAL DISCLOSURE OF NON-CASH INFORMATION
Construction expenditures in accounts payable			$469			$399
Equipment acquired but unpaid as of end of period			$6			$11

The accompanying notes are an integral part of these financial statements.

Consolidated Edison Company of New York, Inc.

CONSOLIDATED BALANCE SHEET (UNAUDITED)

(Millions of Dollars)			September 30, 2024			December 31, 2023
ASSETS
CURRENT ASSETS
Cash and temporary cash investments			$33			$1,138
Accounts receivable – customers, net allowance for uncollectible accounts of $448 and $353 in 2024 and 2023, respectively			2,456			2,330
Other receivables, net allowance for uncollectible accounts of $21 and $9 in 2024 and 2023, respectively			208			332
Accrued unbilled revenue			565			678
Accounts receivable from affiliated companies			481			146
Fuel oil, gas in storage, materials and supplies, at average cost			421			422
Prepayments			1,043			329
Regulatory assets			193			254
Revenue decoupling mechanism receivable			164			190
Fair value of derivative assets			13			49
Other current assets			127			113
TOTAL CURRENT ASSETS			5,704			5,981
INVESTMENTS			692			608
UTILITY PLANT, AT ORIGINAL COST
Electric			38,340			36,808
Gas			13,762			13,226
Steam			3,150			3,085
General			4,431			4,530
TOTAL			59,683			57,649
Less: Accumulated depreciation			14,116			13,171
Net			45,567			44,478
Construction work in progress			2,688			2,168
NET UTILITY PLANT			48,255			46,646
NON-UTILITY PROPERTY
Non-utility property, net accumulated depreciation of $25 in 2024 and 2023			2			2
NET PLANT			48,257			46,648
OTHER NONCURRENT ASSETS
Regulatory assets			4,971			4,314
Operating lease right-of-use asset			499			532
Pension and retiree benefits			3,370			3,184
Fair value of derivative assets			20			49
Other deferred charges and noncurrent assets			336			284
TOTAL OTHER NONCURRENT ASSETS			9,196			8,363
TOTAL ASSETS			$63,849			$61,600

The accompanying notes are an integral part of these financial statements.

Consolidated Edison Company of New York, Inc.

CONSOLIDATED BALANCE SHEET (UNAUDITED)

(Millions of Dollars)			September 30, 2024			December 31, 2023
LIABILITIES AND SHAREHOLDER’S EQUITY
CURRENT LIABILITIES
Long-term debt due within one year			$250			$250
Notes payable			1,676			1,903
Accounts payable			1,328			1,629
Accounts payable to affiliated companies			18			16
Customer deposits			419			378
Accrued taxes			48			55
Accrued taxes to affiliated companies			1			1
Accrued interest			315			159
Accrued wages			120			114
Fair value of derivative liabilities			95			179
Regulatory liabilities			71			107
System benefit charge			409			406
Operating lease liabilities			116			116
Other current liabilities			352			381
TOTAL CURRENT LIABILITIES			5,218			5,694
NONCURRENT LIABILITIES
Provision for injuries and damages			179			185
Pensions and retiree benefits			579			542
Superfund and other environmental costs			1,009			1,026
Asset retirement obligations			535			520
Fair value of derivative liabilities			106			108
Deferred income taxes and unamortized investment tax credits			8,798			7,984
Operating lease liabilities			430			429
Regulatory liabilities			4,561			4,818
Other deferred credits and noncurrent liabilities			365			338
TOTAL NONCURRENT LIABILITIES			16,562			15,950
LONG-TERM DEBT			22,196			20,810
COMMITMENTS AND CONTINGENCIES (Note B and Note G)
SHAREHOLDER’S EQUITY (See Statement of Shareholder’s Equity)			19,873			19,146
TOTAL LIABILITIES AND SHAREHOLDER’S EQUITY			$63,849			$61,600

The accompanying notes are an integral part of these financial statements.

Consolidated Edison Company of New York, Inc.

CONSOLIDATED STATEMENT OF SHAREHOLDER’S EQUITY (UNAUDITED)

			Common Stock						Additional Paid-In Capital			Retained Earnings			Repurchased Con Edison Stock			Capital Stock Expense			Accumulated Other Comprehensive Income (Loss)			Total
(In Millions)/Except Share Data)			Shares			Amount
BALANCE AS OF DECEMBER 31, 2022			235			$589			$7,419			$9,890			$(962)			$(62)			$4			$16,878
Net income												604												604
Common stock dividend to Con Edison												(264)												(264)
Capital contribution by Con Edison									1,675															1,675
Other comprehensive loss																					(1)			(1)
BALANCE AS OF MARCH 31, 2023			235			$589			$9,094			$10,230			$(962)			$(62)			$3			$18,892
Net income												189												189
Common stock dividend to Con Edison												(264)												(264)
Capital contribution by Con Edison									26															26
BALANCE AS OF JUNE 30, 2023			235			$589			$9,120			$10,155			$(962)			$(62)			$3			$18,843
Net income												515												515
Common stock dividend to Con Edison												(264)												(264)
Capital contribution by Con Edison									19															19
BALANCE AS OF SEPTEMBER 30, 2023			235			$589			$9,139			$10,406			$(962)			$(62)			$3			$19,113
BALANCE AS OF DECEMBER 31, 2023			235			$589			$9,139			$10,440			$(962)			$(62)			$2			$19,146
Net income												694												694
Common stock dividend to Con Edison												(268)												(268)
Capital contribution by Con Edison									25															25
BALANCE AS OF MARCH 31, 2024			235			$589			$9,164			$10,866			$(962)			$(62)			$2			$19,597
Net income												186												186
Common stock dividend to Con Edison												(268)												(268)
Capital contribution by Con Edison									55															55
BALANCE AS OF JUNE 30, 2024			235			$589			$9,219			$10,784			$(962)			$(62)			$2			$19,570
Net income												537												537
Common stock dividend to Con Edison												(268)												(268)
Capital contribution by Con Edison									25															25
Stock awards									9															9
BALANCE AS OF SEPTEMBER 30, 2024			235			$589			$9,253			$11,053			$(962)			$(62)			$2			$19,873

The accompanying notes are an integral part of these financial statements.

NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)

General

These combined notes accompany and form an integral part of the separate interim consolidated financial statements of each of the two separate registrants: Consolidated Edison, Inc. and its subsidiaries (Con Edison) and Consolidated Edison Company of New York, Inc. and its subsidiaries (CECONY). CECONY is a subsidiary of Con Edison and as such its financial condition and results of operations and cash flows, that are presented separately in the CECONY consolidated financial statements, are also consolidated, along with those of Orange and Rockland Utilities, Inc. (O&R), Con Edison Transmission, Inc. (together with its subsidiaries, Con Edison Transmission) and its former subsidiary, Con Edison Clean Energy Businesses, Inc. (together with its subsidiaries, the Clean Energy Businesses), in Con Edison’s consolidated financial statements. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note R and Note S. The term “Utilities” is used in these notes to refer to CECONY and O&R.

As used in these notes, the term “Companies” refers to Con Edison and CECONY and, except as otherwise noted, the information in these combined notes relates to each of the Companies. However, CECONY makes no representation as to information contained in these combined notes relating to Con Edison or the subsidiaries of Con Edison other than itself.

The separate interim consolidated financial statements of each of the Companies are unaudited but, in the opinion of their respective managements, reflect all adjustments (which include only normally recurring adjustments) necessary for a fair statement of the results for the interim periods presented. The Companies’ separate interim consolidated financial statements should be read together with their separate audited financial statements (including the combined notes thereto) included in Item 8 of their combined Annual Report on Form 10-K for the year ended December 31, 2023, and their separate unaudited financial statements (including the combined notes thereto) included in Part 1, Item 1 of their combined Quarterly Reports on Form 10-Q for the quarterly periods ended March 31, 2024 and June 30, 2024.

Con Edison has two regulated utility subsidiaries: CECONY and O&R. CECONY provides electric service and gas service in New York City and Westchester County and steam service in parts of Manhattan. O&R, along with its regulated utility subsidiary, provides electric service in southeastern New York and northern New Jersey, and gas service in southeastern New York. Con Edison Transmission invests in and seeks to develop electric transmission projects through its subsidiary, Consolidated Edison Transmission, LLC, and manages, through joint ventures, investments in gas pipeline and storage facilities through its subsidiary, Con Edison Gas Pipeline and Storage, LLC. See “Investments” in Note A.

Note A – Summary of Significant Accounting Policies and Other Matters

Accounting Policies

The accounting policies of Con Edison and its subsidiaries conform to generally accepted accounting principles in the United States of America (GAAP). For the Utilities, these accounting principles include the accounting rules for regulated operations and the accounting requirements of the Federal Energy Regulatory Commission (FERC) and the state regulators having jurisdiction.

Investments

Con Edison's investments consist primarily of the investments of Con Edison Transmission that are accounted for under the equity method and the fair value of the Utilities' supplemental retirement income plan and deferred income plan assets.

Investment in Mountain Valley Pipeline, LLC (MVP)

In June 2024, the Mountain Valley Pipeline, a 303-mile gas transmission pipeline in West Virginia and Virginia, entered service. The project operator is continuing restoration of the right of way and estimates a total project cost of approximately $8,100 million (excluding allowance for funds used during construction (AFUDC)). Con Edison Transmission's interest in MVP, the company that developed the project, is expected to be approximately 6.6 percent. At September 30, 2024, the carrying value of Con Edison Transmission's investment in MVP was $165 million, and its cash contributions to the joint venture amounted to $530 million. Con Edison records its pro rata share of earnings from its equity investment in MVP, adjusted for accretion of the basis difference and income taxes, on its consolidated income statement. Con Edison's pro rata share of earnings from its equity investment in MVP, adjusted for accretion of the basis difference, was $8 million ($6 million after-tax) and $21 million ($15 million after-tax) for the three and nine months ended September 30, 2024, respectively.

Reclassification

Certain prior period amounts have been reclassified to conform with the current period presentation.

Earnings Per Share

Con Edison presents basic and diluted earnings per share (EPS) on the face of its consolidated income statement. Basic EPS is calculated by dividing earnings available to common shareholders (“Net income for common stock” on Con Edison’s consolidated income statement) by the weighted average number of Con Edison common shares outstanding during the period. In the calculation of diluted EPS, weighted average shares outstanding are increased for additional shares that would be outstanding if potentially dilutive securities were converted to common stock.

Potentially dilutive securities for Con Edison consist of restricted stock units and deferred stock units for which the average market price of the common shares for the period was greater than the estimated vesting price.

For the three and nine months ended September 30, 2024 and 2023, basic and diluted EPS for Con Edison are calculated as follows:

			For the Three Months Ended September 30,						For the Nine Months Ended September 30,
(Millions of Dollars, except per share amounts/Shares in Millions)			2024			2023			2024			2023
Net income for common stock			$588			$526			$1,510			$2,185
Weighted average common shares outstanding – basic			346.2			345.0			345.9			348.4
Add: Incremental shares attributable to effect of potentially dilutive securities			1.3			1.5			1.3			1.5
Adjusted weighted average common shares outstanding – diluted			347.5			346.5			347.2			349.9
Net Income per common share – basic			$1.70			$1.53			$4.37			$6.27
Net Income per common share – diluted			$1.69			$1.52			$4.35			$6.24

Reconciliation of Cash, Temporary Cash Investments and Restricted Cash

Cash, temporary cash investments and restricted cash are presented on a combined basis in the Companies’ consolidated statements of cash flows. At September 30, 2024 and 2023, cash, temporary cash investments and restricted cash for Con Edison were as follows; CECONY did not have material restricted cash balances as of September 30, 2024 and 2023:

			At September 30,
			Con Edison
(Millions of Dollars)			2024			2023
Cash and temporary cash investments			$93			$539
Restricted cash (a)			9			6
Total cash, temporary cash investments and restricted cash			$102			$545

(a)On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note R. Con Edison retained one deferred project, Broken Bow II, a 75MW nameplate capacity wind power project located in Nebraska. Con Edison's restricted cash for the 2023 and 2024 periods primarily include restricted cash of Broken Bow II that continued to be classified as held for sale as of September 30, 2024. See Note S.

Variable Interest Entities

The accounting rules for consolidation address the consolidation of a variable interest entity (VIE) by a business enterprise that is the primary beneficiary. A VIE is an entity that does not have a sufficient equity investment at risk to permit it to finance its activities without additional subordinated financial support, or whose equity investors lack the characteristics of a controlling financial interest. The primary beneficiary is the business enterprise that has the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and either absorbs a significant amount of the VIE’s losses or has the right to receive benefits that could be significant to the VIE.

The Companies enter into arrangements including leases, partnerships and electricity purchase agreements, with various entities. As a result of these arrangements, the Companies retain or may retain a variable interest in these entities.

CECONY has an ongoing long-term electricity purchase agreement with Brooklyn Navy Yard Cogeneration Partners, LP, a potential VIE. In 2023, a request was made of this counterparty for information necessary to determine whether the entity was a VIE and whether CECONY is the primary beneficiary; however, the information was not made available. The payments for this contract constitute CECONY’s maximum exposure to loss with respect to the potential VIE.

Assets Held for Sale

Generally, a long-lived asset or business to be sold is classified as held for sale in the period in which management, with approval from the Board of Directors, commits to a plan to sell, and a sale is expected to be completed within one year. During the first nine months of 2022, Con Edison considered strategic alternatives with respect to the Clean Energy Businesses.

As described further in Note R, on October 1, 2022, Con Edison's management received authority to commit to a plan to sell the Clean Energy Businesses and entered into a purchase and sale agreement. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses with the exception of two tax equity interests in three projects and one deferred project, Broken Bow II. Broken Bow II continued to be classified as held for sale as of September 30, 2024. See Note S.

Note B – Regulatory Matters

Rate Plans

O&R New York – Electric

In April 2024, O&R filed an update to its January 2024 request to the New York State Public Service Commission (NYSPSC) for an electric rate increase effective January 1, 2025. The company decreased its requested January 2024 rate increase by $7.5 million to $10.7 million. For purposes of illustration, the filing calculated rate increases of $34.8 million and $55 million effective January 2026 and 2027, respectively, based upon the proposed return on common equity of 10.25 percent and a common equity ratio of 50 percent. In May 2024, the New York State Department of Public Service (NYSDPS) submitted testimony in the NYSPSC proceeding in which O&R requested an electric rate increase, effective January 1, 2025. The NYSDPS testimony supports an electric rate decrease of $27.6 million, reflecting, among other things, a 9.50 percent return on common equity and a common equity ratio of 48 percent.

O&R New York – Gas

In April 2024, O&R filed an update to its January 2024 request to the NYSPSC for a gas rate increase effective January 1, 2025. The company increased its requested January 2024 rate increase by $3.1 million to $17.5 million. For purposes of illustration, the filing calculated rate increases of $22.8 million and $19.2 million effective January 2026 and 2027, respectively, based upon the proposed return on common equity of 10.25 percent and a common equity ratio of 50 percent. In May 2024, the NYSDPS submitted testimony in the NYSPSC proceeding in which O&R requested a gas rate increase, effective January 1, 2025. The NYSDPS testimony supports a gas rate decrease of $2.9 million, reflecting, among other things, a 9.50 percent return on common equity and a common equity ratio of 48 percent.

Bill Relief Program

In March 2024, CECONY and O&R received $91 million and $9 million, respectively, pursuant to a New York State bill relief program funded by the state that provided a one-time bill credit for electric and gas customers. The program was established to partially offset the costs all customers pay to fund utility energy affordability programs.

Other Regulatory Matters

In January 2023, CECONY initiated a review of welds on certain gas and steam mains following the company’s discovery of a leak from a gas main weld in Queens, New York. During the course of its review thus far, CECONY discovered a limited number of other non-conforming gas and steam main welds. New York regulations require utilities to perform and record weld films for certain gas and steam main welds. Upon reviewing these films, CECONY determined that in some instances third-party contractors engaged in misconduct by substituting duplicate weld films for different welds, while another third-party contractor had created poor quality weld films. CECONY voluntarily disclosed its initial review and findings to the NYSDPS which, in turn, initiated its own investigation. CECONY also reported the contractors’ misconduct to law enforcement. Given the nature of the non-conforming welds identified, CECONY does not anticipate significant impact to the operation of its gas and steam mains. CECONY continues to investigate this matter, is remediating and monitoring the known non-conforming welds and is cooperating with the NYSDPS on its investigation of this matter. CECONY is unable to estimate the amount or

range of its possible loss, if any, related to this matter. At September 30, 2024, CECONY had not accrued a liability related to this matter.

In May 2024, the NYSPSC issued an order denying an April 2023 petition by CECONY that requested permission to capitalize costs to implement its new customer billing and information system to the extent those costs exceeded the $421 million cap established in CECONY’s 2020 – 2022 electric and gas rate plans. CECONY’s final costs for the new system were $510 million ($89 million above the $421 million cap in the rate plans). CECONY believes that the incremental costs were both prudent and necessary for the successful deployment of the system for the benefit of its customers. In May 2024, CECONY expensed incremental costs of $51 million for the new system that were previously capitalized, in addition to a $38 million reserve established at December 31, 2023. In June 2024, CECONY filed a petition for rehearing with the NYSPSC. CECONY is unable to predict the NYSPSC's response to its rehearing petition.

In January 2018, the NYSPSC issued an order initiating a focused operations audit of the Utilities’ financial accounting for income taxes. The audit is investigating the Utilities’ inadvertent understatement of a portion, the amount of which may be material, of their calculation of total federal income tax expense for ratemaking purposes related to the calculation of plant retirement-related cost of removal. As a result of such understatement, the Utilities accumulated significant income tax regulatory assets ($1,066 million and $14 million for CECONY and O&R, respectively, as of September 30, 2024 and $1,113 million and $18 million for CECONY and O&R, respectively, as of December 31, 2023) which are not earning a return. While the Utilities have properly calculated and paid their federal income taxes and there is no uncertain tax position related to this matter, this understatement of historical income tax expense materially reduced the amount of revenue collected from the Utilities' customers in the past relative to what it should have been. The Utilities’ rate plans have reflected the correct amount of federal income taxes recoverable from customers, including a proportionate recovery of the regulatory asset, beginning with O&R’s rate plans effective November 2015, CECONY’s electric and gas rate plans effective January 2017, and CECONY’s steam plan effective November 2023. As part of the audit, the Utilities plan to pursue a private letter ruling from the Internal Revenue Service (IRS) confirming that the Utilities’ inadvertent understatement of prior years’ income tax expense constitutes a normalization violation that can be cured through an increase in future years’ revenue requirements until such time as the regulatory asset is fully recovered in rates, and not through a write-down of all or a portion of the Utilities’ regulatory asset. Under Accounting Standards Codification Topic (ASC) 740, the Utilities recorded an unfunded deferred federal income tax liability (with a gross-up amount) and a corresponding regulatory asset. The income tax regulatory assets are netted against the related regulatory liability for future income tax and are shown in the line “Future income tax” in the following table of Regulatory Assets and Liabilities and on the Companies’ consolidated balance sheets in the line “Regulatory liabilities.” Management’s assessment is that the income tax regulatory assets as of September 30, 2024 are probable of collection through future rates. The IRS provides safe harbor relief for inadvertent normalization violations through the jurisdictional rate setting process of including in rates adequate revenue to fully recover the deferred tax balance. However, the Utilities would record a liability or impair a portion of the regulatory assets associated with this understatement if the NYSPSC were to issue an order that required the Utilities to write off all or a portion of their existing regulatory asset. The Utilities are unable to estimate the amount or range of their possible loss, if any, related to this matter. At September 30, 2024, the Utilities had not accrued a liability related to this matter.

Regulatory Assets and Liabilities

Regulatory assets and liabilities at September 30, 2024 and December 31, 2023 were comprised of the following items:

			Con Edison									CECONY
(Millions of Dollars)			2024			2023						2024			2023
Regulatory assets
System peak reduction and energy efficiency programs			$1,204			$1,095						$1,172			$1,075
Environmental remediation costs			1,093			1,105						1,010			1,022
COVID - 19 pandemic deferrals			888			789						875			782
Revenue taxes			525			476						503			455
Legacy meters (a)			420			17						405			—
Property tax reconciliation			176			169						176			169
Deferred storm costs			169			206						67			115
Deferred derivative losses - long term			154			163						138			148
Electric vehicle make ready			115			73						105			68
MTA power reliability deferral			38			61						38			61
Gas service line deferred costs			23			43						23			43
Unrecognized pension and other postretirement costs (b)			10			—						10			—
Pension and other postretirement benefits deferrals			5			48						5			39
Other			497			362						444			337
Regulatory assets – noncurrent			5,317			4,607						4,971			4,314
Deferred derivative losses - short term			165			269						151			253
Recoverable energy costs			59			12						42			1
Regulatory assets – current			224			281						193			254
Total Regulatory Assets			$5,541			$4,888						$5,164			$4,568
Regulatory liabilities
Allowance for cost of removal less salvage			$1,470			$1,456						$1,269			$1,266
Future income tax*			1,324			1,535						1,209			1,404
Unrecognized pension and other postretirement costs (b)			787			943						739			867
Pension and other postretirement benefit deferrals			370			284						312			233
Net unbilled revenue deferrals			260			278						260			278
Late payment charge deferral			227			167						221			161
System benefit charge carrying charge			111			92						106			88
Net proceeds from sale of property			31			48						30			47
Deferred derivative gains - long term			19			49						19			49
Settlement of prudence proceeding			10			11						10			11
Other			428			465						386			414
Regulatory liabilities – noncurrent			5,037			5,328						4,561			4,818
Refundable energy costs			81			71						43			36
Revenue decoupling mechanism			33			—						—			—
Deferred derivative gains - short term			29			74						28			71
Regulatory liabilities – current			143			145						71			107
Total Regulatory Liabilities			$5,180			$5,473						$4,632			$4,925

• See "Other Regulatory Matters," above.

(a) Pursuant to their rate plans, CECONY and O&R are recovering the costs of legacy meters over a 15-year period beginning January 1, 2024 and a 12-year period beginning January 1, 2022, respectively.

(b) Unrecognized pension and other postretirement costs represent the deferrals associated with the accounting rules for retirement benefits.

In general, the Utilities receive or are being credited with a return at the Other Customer-Provided Capital rate for regulatory assets that have not been included in rate base, and receive or are being credited with a return at the pre-tax weighted average cost of capital once the asset is included in rate base. Similarly, the Utilities pay to or credit customers with a return at the Other Customer-Provided Capital rate for regulatory liabilities that have not been included in rate base, and pay to or credit customers with a return at the pre-tax weighted average cost of capital once the liability is included in rate base. The Other Customer-Provided Capital rate for the nine months ended September 30, 2024 and the year ended December 31, 2023 was 5.95 percent and 5.20 percent, respectively.

In general, the Utilities are receiving or being credited with a return on their regulatory assets for which a cash outflow has been made ($3,095 million and $2,541 million for Con Edison, and $2,873 million and $2,359 million for CECONY at September 30, 2024 and December 31, 2023, respectively). Regulatory assets of RECO for which a cash outflow has been made ($24 million at September 30, 2024 and December 31, 2023) are not receiving or being credited with a return. RECO recovers regulatory assets over a period of up to four years or until they are addressed in its next base rate case in accordance with the rate provisions approved by the NJBPU. Regulatory liabilities are treated in a consistent manner.

Regulatory assets that represent future financial obligations and were deferred in accordance with the Utilities’ rate plans or orders issued by state regulators do not earn a return until such time as a cash outlay has been made. Regulatory liabilities are treated in a consistent manner. At September 30, 2024 and December 31, 2023, regulatory assets for Con Edison and CECONY that did not earn a return consisted of the following items:

Regulatory Assets Not Earning a Return*

			Con Edison						CECONY
(Millions of Dollars)			2024			2023			2024			2023
Environmental remediation costs			$1,093			$1,105			$1,009			$1,022
Revenue taxes			558			490			535			470
COVID-19 deferral for uncollectible accounts receivable			391			291			384			288
Deferred derivative losses - current			165			269			152			253
Deferred derivative losses - long term			154			163			138			148
Unrecognized pension and other postretirement costs			10			—			10			—
Other			75			29			63			28
Total			$2,446			$2,347			$2,291			$2,209

*This table presents regulatory assets not earning a return for which no cash outlay has been made.

The recovery periods for regulatory assets for which a cash outflow has not been made and that do not earn a return have not yet been determined, except as noted below, and are expected to be determined pursuant to the Utilities’ future rate plans to be filed or orders issued by the state regulators in connection therewith.

The Utilities recover unrecognized pension and other postretirement costs over 10 years, and the portion of investment gains or losses are recognized in expense over 15 years, pursuant to NYSPSC policy.

The deferral for revenue taxes represents the New York State metropolitan transportation business tax surcharge on the cumulative temporary differences between the book and tax basis of assets and liabilities of the Utilities, as well as the difference between taxes collected and paid by the Utilities to fund mass transportation. The Utilities recover the majority of the revenue taxes over the remaining book lives of the electric and gas plant assets, as well as the steam plant assets for CECONY.

The Utilities recover deferred derivative losses – current within one year, and noncurrent generally within three years.

Note C – Capitalization

In May 2024, CECONY issued $400 million aggregate principal amount of 5.375 percent debentures, due 2034 and $1,000 million aggregate principal amount of 5.7 percent debentures, due 2054.

In September 2024, O&R issued $125 million aggregate principal amount of 5.41 percent debentures, due 2054.

In October 2024, all of the $224.6 million of Series 2010A tax-exempt bonds issued for the benefit of CECONY, bearing interest at a weekly rate, were called for redemption in November 2024.

The carrying amounts and fair values of long-term debt at September 30, 2024 and December 31, 2023 were:

(Millions of Dollars)			2024												2023
Long-Term Debt (including current portion) (a)			Carrying Amount						Fair Value						Carrying Amount						Fair Value
Con Edison (b)			$23,688						$22,535						$22,177						$20,525
CECONY			$22,446						$21,371						$21,060						$19,517

(a)Amounts shown are net of unamortized debt expense and unamortized debt discount of $237 million and $229 million for Con Edison and CECONY, respectively, as of September 30, 2024 and $222 million and $215 million for Con Edison and CECONY, respectively, as of December 31, 2023.

(b)Amounts shown exclude the debt of Broken Bow II, a deferred project that was classified as held for sale as of December 31, 2023. The carrying value and fair value of Broken Bow II's long-term debt, including the current portion, as of September 30, 2024 was $61 million and $58 million, respectively. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note R and Note S.

The fair values of the Companies' long-term debt have been estimated primarily using available market information and at September 30, 2024 are classified as Level 2 liabilities. See Note O.

Note D – Short-Term Borrowing

In March 2024, CECONY entered into a 364-Day Revolving Credit Agreement (the CECONY Credit Agreement) that replaced a March 2023 CECONY 364-Day Credit Agreement under which banks are committed to provide loans up to $500 million on a revolving credit basis. The CECONY Credit Agreement expires in March 2025 and supports CECONY’s commercial paper program. Loans issued under the CECONY Credit Agreement may also be used for other general corporate purposes. Any borrowings under the CECONY Credit Agreement would generally be at variable interest rates.

The banks’ commitments under the CECONY Credit Agreement are subject to certain conditions, including that there be no event of default under the CECONY Credit Agreement. The commitments are not subject to maintenance of credit rating levels or the absence of a material adverse change. Upon a change of control of, or upon an event of default by CECONY under the CECONY Credit Agreement, the banks may terminate their commitments and declare any amounts owed by CECONY immediately due and payable. Events of default include, among others, CECONY exceeding at any time of a ratio of consolidated debt to consolidated total capital of 0.65 to 1; CECONY having liens on its assets in an aggregate amount exceeding 10 percent of its consolidated net tangible assets, subject to certain exceptions; CECONY or any of its material subsidiaries failing to make one or more payments in respect of material financial obligations (in excess of an aggregate $150 million of debt or derivative obligations other than non-recourse debt); the occurrence of an event or condition which results in the acceleration of the maturity of any material debt (in excess of an aggregate $150 million of debt other than non-recourse debt) or enables the holders of such debt to accelerate the maturity thereof; and other customary events of default. Interest and fees charged reflect CECONY's credit rating.

At September 30, 2024, Con Edison had $2,059 million of commercial paper outstanding of which $1,676 million was outstanding under CECONY’s program. The weighted average interest rate at September 30, 2024 was 5.1 percent for both Con Edison and CECONY. At December 31, 2023, Con Edison had $2,288 million of commercial paper outstanding of which $1,903 million was outstanding under CECONY’s program. The weighted average interest rate at December 31, 2023 was 5.6 percent for both Con Edison and CECONY.

At September 30, 2024 and December 31, 2023, no loans or letters of credit were outstanding under the Companies’ $2,500 million 2023 Credit Agreement (Credit Agreement) and no loans were outstanding under the CECONY Credit Agreement. The Companies were in compliance with their significant debt covenants at September 30, 2024. In March 2024, the termination date of the Credit Agreement was extended from March 2028 to March 2029. In March 2024, the Companies also entered into a First Amendment to the Credit Agreement that, among other things, amended the mechanics relating to determining the interest rate to be paid with respect to a “term SOFR loan.”

Note E – Pension Benefits

Total Periodic Benefit Credit

The components of the Companies’ total periodic benefit credit for the three and nine months ended September 30, 2024 and 2023 were as follows:

			For the Three Months Ended September 30,
			Con Edison						CECONY
(Millions of Dollars)			2024			2023			2024			2023
Service cost – including administrative expenses			$44			$40			$42			$38
Interest cost on projected benefit obligation			160			162			151			153
Expected return on plan assets			(282)			(279)			(269)			(265)
Recognition of net actuarial gain			(1)			(58)			(2)			(55)
Recognition of prior service credit			(4)			(4)			(5)			(5)
TOTAL PERIODIC BENEFIT CREDIT			$(83)			$(139)			$(83)			$(134)
Cost capitalized			(22)			(19)			(21)			(18)
Reconciliation to rate level			12			72			10			66
Total credit recognized			$(93)			$(86)			$(94)			$(86)

			For the Nine Months Ended September 30,
			Con Edison						CECONY
(Millions of Dollars)			2024			2023			2024			2023
Service cost – including administrative expenses			$133			$122			$126			$113
Interest cost on projected benefit obligation			481			486			453			458
Expected return on plan assets			(846)			(837)			(807)			(795)
Recognition of net actuarial gain			(4)			(174)			(5)			(164)
Recognition of prior service credit			(13)			(12)			(15)			(15)
TOTAL PERIODIC BENEFIT CREDIT			$(249)			$(415)			$(248)			$(403)
Cost capitalized			(68)			(61)			(65)			(58)
Reconciliation to rate level			39			218			31			202
Total credit recognized			$(278)			$(258)			$(282)			$(259)

Components of net periodic benefit credit other than service cost are presented outside of operating income on the Companies' consolidated income statements, and only the service cost component is eligible for capitalization. Accordingly, the service cost component is included in the line "Other operations and maintenance" and the non-service cost components are included in the lines "Other income" and "Other deductions" in the Companies' consolidated income statements.

Expected Contributions

Based on estimates as of September 30, 2024, the Companies expect to make contributions to the pension plans during 2024 of $25 million (of which $22 million is to be made by CECONY). The Companies’ policy is to fund the total periodic benefit cost of the qualified plan to the extent tax deductible and to also contribute to the non-qualified supplemental pension plans. No funding is anticipated for the qualified plan during 2024, and during the first nine months of 2024, the Companies contributed $15 million to the non-qualified supplemental pension plans, $13 million of which was contributed by CECONY. CECONY also contributed $12 million to the external trust for its non-qualified supplemental pension plan.

Note F – Other Postretirement Benefits

Total Periodic Benefit Credit

The components of the Companies’ total periodic other postretirement benefit credit for the three and nine months ended September 30, 2024 and 2023 were as follows:

			For the Three Months Ended September 30,
			Con Edison						CECONY
(Millions of Dollars)			2024			2023			2024			2023
Service cost - including administrative expenses			$3			$4			$3			$3
Interest cost on projected other postretirement benefit obligation			12			14			10			12
Expected return on plan assets			(17)			(18)			(14)			(14)
Recognition of net actuarial gain			(5)			(4)			(4)			(2)
TOTAL PERIODIC OTHER POSTRETIREMENT CREDIT			$(7)			$(4)			$(5)			$(1)
Cost capitalized			(2)			(2)			(1)			(2)
Reconciliation to rate level			4			1			3			—
Total credit recognized			$(5)			$(5)			$(3)			$(3)

			For the Nine Months Ended September 30,
			Con Edison						CECONY
(Millions of Dollars)			2024			2023			2024			2023
Service cost - including administrative expenses			$9			$11			$8			$9
Interest cost on projected other postretirement benefit obligation			35			43			30			37
Expected return on plan assets			(51)			(53)			(41)			(42)
Recognition of net actuarial gain			(14)			(12)			(11)			(6)
Recognition of prior service credit			(1)			(1)			—			—
TOTAL PERIODIC OTHER POSTRETIREMENT CREDIT			$(22)			$(12)			$(14)			$(2)
Cost capitalized			(4)			(5)			(4)			(4)
Reconciliation to rate level			12			2			10			(2)
Total credit recognized			$(14)			$(15)			$(8)			$(8)

For information about the presentation of the components of other postretirement benefit credit, see Note E.

Contributions

As of September 30, 2024, the Companies contributed $7 million (all of which was made by CECONY) to the other postretirement benefit plans in 2024. The Companies’ policy is to fund the total periodic benefit cost of the plans to the extent tax deductible.

Note G – Environmental Matters

Superfund Sites

Hazardous substances, such as asbestos, polychlorinated biphenyls (PCBs) and coal tar, have been used or generated in the course of operations of the Utilities and their predecessors and are present at sites and in facilities and equipment they currently or previously owned, including sites at which gas was manufactured or stored.

The Federal Comprehensive Environmental Response, Compensation and Liability Act of 1980 and similar state statutes (Superfund) impose joint and several liability, regardless of fault, upon generators of hazardous substances for investigation and remediation costs (which include costs of demolition, removal, disposal, storage, replacement, containment and monitoring) and natural resource damages. Liability under these laws can be material and may be imposed for contamination from past acts, even though such past acts may have been lawful at the time they occurred. The sites at which the Utilities have been asserted to have liability under these laws, including their manufactured gas plant sites and any neighboring areas to which contamination may have migrated, are referred to herein as “Superfund Sites.”

For Superfund Sites where there are other potentially responsible parties and the Utilities are not managing the site investigation and remediation, the accrued liability represents an estimate of the amount the Utilities will need to pay

to investigate and, where determinable, discharge their related obligations. For Superfund Sites (including the manufactured gas plant sites) for which one of the Utilities is managing the investigation and remediation, the accrued liability represents an estimate of the company's share of the undiscounted cost to investigate the sites and, for sites that have been investigated in whole or in part, the cost to remediate the sites, if remediation is necessary and if a reasonable estimate of such cost can be made. Remediation costs are estimated in light of the information available, applicable remediation standards and experience with similar sites.

The accrued liabilities and regulatory assets related to Superfund Sites at September 30, 2024 and December 31, 2023 were as follows:

			Con Edison						CECONY
(Millions of Dollars)			2024			2023			2024			2023
Accrued Liabilities:
Manufactured gas plant sites			$996			$1,016			$904			$924
Other Superfund Sites			105			102			105			102
Total			$1,101			$1,118			$1,009			$1,026
Regulatory assets			$1,093			$1,105			$1,010			$1,022

Most of the accrued Superfund Site liability relates to sites that have been investigated, in whole or in part. However, for some of the sites, the extent and associated cost of the required remediation has not yet been determined. As investigations progress and information pertaining to the required remediation becomes available, the Utilities expect that additional liability may be accrued, the amount of which is not presently determinable but may be material. The Utilities defer prudently incurred investigation and remediation costs as regulatory assets (for subsequent recovery through rates).

Environmental investigation and remediation costs incurred related to Superfund Sites for the three and nine months ended September 30, 2024 and 2023 were as follows:

			For the Three Months Ended September 30,
			Con Edison						CECONY
(Millions of Dollars)			2024			2023			2024			2023
Remediation costs incurred			$12			$1			$12			$1

			For the Nine Months Ended September 30,
			Con Edison						CECONY
(Millions of Dollars)			2024			2023			2024			2023
Remediation costs incurred			$27			$8			$27			$8

Insurance and other third-party recoveries received by Con Edison or CECONY were immaterial for the three and nine months ended September 30, 2024 and 2023.

Con Edison and CECONY estimated that for their manufactured gas plant sites (including CECONY’s Astoria site), the aggregate undiscounted potential liability for the investigation and remediation of coal tar and/or other environmental contaminants could range up to $3,440 million and $3,295 million, respectively. These estimates were based on the assumption that there is contamination at all sites, including those that have not yet been fully investigated and additional assumptions about the extent of the contamination and the type and extent of the remediation that may be required. Actual experience may be materially different.

Asbestos Proceedings

Suits have been brought in New York State and federal courts against the Utilities and many other defendants, wherein a large number of plaintiffs sought large amounts of compensatory and punitive damages for deaths and injuries allegedly caused by exposure to asbestos at various premises of the Utilities. The suits that have been resolved, that are many, have been resolved without any payment by the Utilities, or for amounts that were not, in the aggregate, material to them. The amounts specified in all the remaining thousands of suits total billions of dollars; however, the Utilities believe that these amounts are greatly exaggerated, based on the disposition of previous claims. At September 30, 2024, Con Edison and CECONY have accrued their estimated aggregate undiscounted potential liabilities for these suits and additional suits that may be brought through 2035 as shown in the following table. These estimates were based upon a combination of modeling, historical data analysis and risk factor assessment. Courts have applied, and may continue to apply, different standards for determining liability in asbestos suits than the standard that applied historically. As a result, the Companies currently believe that there is a reasonable possibility of an exposure to loss in excess of the liability accrued for the suits. The Companies are unable to estimate the amount or range of such loss. In addition, certain current and former employees have claimed or are claiming workers’ compensation benefits based on alleged disability from exposure to asbestos. CECONY is permitted to defer as regulatory assets (for subsequent recovery through rates) costs incurred for its asbestos lawsuits and workers’ compensation claims.

The accrued liability for asbestos suits and workers’ compensation proceedings (including those related to asbestos exposure) and the amounts deferred as regulatory assets or liabilities for the Companies at September 30, 2024 and December 31, 2023 were as follows:

			Con Edison						CECONY
(Millions of Dollars)			2024			2023			2024			2023
Accrued liability – asbestos suits			$8			$8			$7			$7
Regulatory assets – asbestos suits			$8			$8			$7			$7
Accrued liability – workers’ compensation			$55			$56			$53			$54
Regulatory liabilities – workers’ compensation			$18			$17			$18			$17

Note H – Material Contingencies

Manhattan Explosion and Fire

On March 12, 2014, two multi-use five-story tall buildings located on Park Avenue between 116th and 117th Streets in Manhattan were destroyed by an explosion and fire. CECONY had delivered gas to the buildings through service lines from a distribution main located below ground on Park Avenue. Eight people died and more than 50 people were injured. Additional buildings were also damaged. The National Transportation Safety Board (NTSB) investigated. The parties to the investigation included CECONY, the City of New York, the Pipeline and Hazardous Materials Safety Administration and the NYSPSC. In June 2015, the NTSB issued a final report concerning the incident, its probable cause and safety recommendations. The NTSB determined that the probable cause of the incident was (1) the failure of a defective fusion joint at a service tee (which joined a plastic service line to a plastic distribution main) installed by CECONY that allowed gas to leak from the distribution main and migrate into a building where it ignited and (2) a breach in a city sewer line that allowed groundwater and soil to flow into the sewer, resulting in a loss of support for the distribution main, that caused it to sag and overstressed the defective fusion joint. The NTSB also made safety recommendations, including recommendations to CECONY that addressed its procedures for the preparation and examination of plastic fusions, training of its staff on conditions for notifications to the city’s Fire Department and extension of its gas main isolation valve installation program. In February 2017, the NYSPSC approved a settlement agreement with CECONY related to the NYSPSC's investigations of the incident and the practices of qualifying persons to perform plastic fusions. Pursuant to the agreement, CECONY provided $27 million of future benefits to customers (for which it accrued a regulatory liability) and did not recover from customers $126 million of costs for gas emergency response activities that it had previously incurred and expensed. Lawsuits are pending against CECONY seeking generally unspecified damages and, in some cases, punitive damages, for wrongful death, personal injury, property damage and business interruption. CECONY notified its insurers of the incident and believes that the policies in force at the time of the incident will cover CECONY’s costs, in excess of a required retention (the amount of which is not material), to satisfy any liability it may have for damages in connection with the incident. During 2020, CECONY accrued its estimated liability for the suits of $40 million and an insurance receivable in the same amount, and such estimated liability and receivable did not change as of September 30, 2024.

Other Contingencies

For additional contingencies, see "Other Regulatory Matters" in Note B, Note G and “Uncertain Tax Positions” in Note J.

Guarantees

Con Edison and its subsidiaries have entered into various agreements providing financial or performance assurance primarily to third parties on behalf of their subsidiaries. In addition, Con Edison provided guarantees to third parties on behalf of the Clean Energy Businesses, all of which were transferred to the buyer of the Clean Energy Businesses, RWE Aktiengesellschaft (RWE). Maximum amounts guaranteed by Con Edison and its subsidiaries under these agreements totaled $175 million at December 31, 2023, and there were no guarantees related to the Clean Energy Businesses at September 30, 2024.

A summary, by type and term, of Con Edison's total guarantees under these agreements at September 30, 2024 is as follows:

Guarantee Type			0 – 3 years			> 10 years			Total
			(Millions of Dollars)
Con Edison Transmission			$54			$—			$54
Broken Bow II			—			9			9
Total			$54			$9			$63

Con Edison Transmission — Con Edison has guaranteed payment by Con Edison Transmission of the contributions Con Edison Transmission agreed to make to New York Transco LLC (New York Transco). Con Edison Transmission owns a 45.7 percent interest in New York Transco’s New York Energy Solution project, the majority of which has been completed. Guarantee amount shown includes the maximum possible required amount of Con Edison Transmission's contributions for the remainder of this project as calculated based on the assumptions that the project is completed at 175 percent of its estimated remaining costs and New York Transco does not use any debt financing for the project.

Broken Bow II — Con Edison has guaranteed obligations on behalf of Broken Bow II associated with its investment in a wind energy facility. Broken Bow II is held for sale as of September 30, 2024. See Note S.

Note I – Leases

Operating lease cost and cash paid for amounts included in the measurement of lease liabilities for the three and nine months ended September 30, 2024 and 2023 were as follows:

			For the Three Months Ended September 30,
			Con Edison						CECONY
(Millions of Dollars)			2024			2023			2024			2023
Operating lease cost			$17			$17			$17			$17
Operating lease cash flows			$6			$6			$6			$6

			For the Nine Months Ended September 30,
			Con Edison						CECONY
(Millions of Dollars)			2024			2023(a)			2024			2023
Operating lease cost			$50			$53			$49			$49
Operating lease cash flows			$15			$17			$14			$14

(a) Amounts for Con Edison include amounts for the Clean Energy Businesses through February 2023. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note R and Note S.

At September 30, 2024, CECONY had two operating lease agreements for battery storage facilities that had not yet commenced operation. Both leases have a lease term of 15 years, and are expected to commence operation within two and three years, respectively. For the three and nine months ended September 30, 2024 and 2023, there were no material right-of-use assets obtained in exchange for operating lease obligations for Con Edison and CECONY, nor any material lease terminations.

Note J – Income Tax

Con Edison’s income tax expense was $133 million and $144 million for the three months ended September 30, 2024 and September 30, 2023, respectively. The decrease in income tax expense is primarily due to non-recurring state income taxes in 2023 from the sale of all of the stock of the Clean Energy Businesses.

CECONY’s income tax expense was $119 million and $109 million for the three months ended September 30, 2024 and September 30, 2023, respectively. The increase in income tax expense is primarily due to higher income before income tax expense.

Reconciliation of the difference between income tax expense and the amount computed by applying the prevailing statutory income tax rate to income before income taxes for the three months ended September 30, 2024 and 2023 is as follows:

			For the Three Months Ended September 30,
			Con Edison						CECONY
(% of Pre-tax income)			2024			2023			2024			2023
STATUTORY TAX RATE
Federal			21		%	21		%	21		%	21		%
Changes in computed taxes resulting from:
State income tax, net of federal income taxes			5			8			5			5
Amortization of excess deferred federal income taxes			(7)			(6)			(7)			(7)
Cost of removal			1			1			1			1
Allowance for uncollectible accounts, net of COVID-19 assistance			(1)			(2)			(1)			(2)
Changes in state apportionments, net of federal income taxes			—			1			—			—
Other			—			(2)			(1)			(1)
Effective tax rate			19		%	21		%	18		%	17		%

Con Edison’s income tax expense was $307 million and $416 million for the nine months ended September 30, 2024 and September 30, 2023, respectively. The decrease in income tax expense is primarily due to lower income before income tax expense, offset in part by the absence of a tax benefit from the recognition of deferred unamortized investment tax credits, both related to the sale of the Clean Energy Businesses in 2023.

CECONY’s income tax expense was $301 million and $297 million for the nine months ended September 30, 2024 and September 30, 2023, respectively. The increase in income tax expense is primarily due to higher income before income tax expense, offset in part by higher amortization of excess deferred federal income taxes.

Reconciliation of the difference between income tax expense and the amount computed by applying the prevailing statutory income tax rate to income before income taxes for the nine months ended September 30, 2024 and 2023 is as follows:

			For the Nine Months Ended September 30,
			Con Edison						CECONY
(% of Pre-tax income)			2024			2023			2024			2023
STATUTORY TAX RATE
Federal			21		%	21		%	21		%	21		%
Changes in computed taxes resulting from:
State income tax, net of federal income taxes			5			5			5			5
Cost of removal			2			1			2			2
Other plant-related items			(1)			—			—			(1)
Renewable energy credits			(1)			(1)			—			—
Amortization of excess deferred federal income taxes			(8)			(5)			(9)			(8)
Other			(1)			—			(1)			—
Impacts from the sale of the Clean Energy Businesses:
Changes in state apportionments, net of federal income taxes			—			(1)			—			—
Deferred unamortized ITC recognized on sale of subsidiary			—			(4)			—			—
Effective tax rate			17		%	16		%	18		%	19		%

In April 2023, the IRS released Revenue Procedure 2023-15, which provides a safe harbor method of accounting that taxpayers may use to determine whether certain expenditures to maintain, repair, replace, or improve natural gas transmission and distribution property must be capitalized as improvements by the taxpayer or deducted for federal income tax purposes in the current tax year. This revenue procedure also provides procedures for taxpayers to obtain automatic consent to change their method of accounting to the safe harbor method of accounting. Con Edison adopted the safe harbor rules on its 2023 federal and state returns and recorded a reduction in its current tax payable and an increase in accumulated deferred tax liabilities of $457 million, $418 million of which is for CECONY and $39 million of which is for O&R, to reflect the cumulative impact of this change in accounting method for the Utilities.

Corporate Alternative Minimum Tax

On August 16, 2022, the Inflation Reduction Act (IRA) was signed into law and implemented a new corporate alternative minimum tax (CAMT) that imposes a 15 percent tax on modified GAAP net income. Pursuant to the IRA, corporations are entitled to a tax credit (minimum tax credit) to the extent the CAMT liability exceeds the regular tax liability. This amount can be carried forward indefinitely and used in future years when regular tax exceeds the CAMT.

Beginning in 2024, based on the existing statute, the Companies are subject to and report the CAMT in their Consolidated Income Statements, Consolidated Statements of Cash Flows and the Consolidated Balance Sheets. The Companies accrued a CAMT liability of $73 million, $64 million of which is for CECONY, before the application of general business credits, with an offsetting deferred tax asset representing the minimum tax credit carryforward, for the nine months ended September 30, 2024. The deferred tax asset related to the minimum tax credit carryforward will be realized to the extent the Companies’ consolidated deferred tax liabilities exceed the minimum tax credit carryforward. The Companies’ deferred tax liabilities are expected to exceed the minimum tax credit carryforward for the foreseeable future and thus no valuation allowance is required. The Companies are continuing to assess the impacts of the IRA on their financial statements and will update estimates based on future guidance to be issued by the Department of the Treasury.

Uncertain Tax Positions

At September 30, 2024, the estimated liability for uncertain tax positions for Con Edison was $13 million, $9 million of which is for CECONY). For the nine months ended September 30, 2024, Con Edison recognized $2 million, all of which is for CECONY, of income tax expense related to current year positions. Con Edison reasonably expects to resolve within the next twelve months approximately $3 million (the entire amount attributable to CECONY) of various federal uncertainties due to the expected completion of ongoing tax examinations, of which the entire amount, if recognized, would reduce their effective tax rate. The total amount of unrecognized tax benefits, if recognized, that would reduce Con Edison’s effective tax rate is $13 million ($12 million, net of federal income taxes) with $9 million attributable to CECONY.

The Companies recognize interest on liabilities for uncertain tax positions in interest expense and would recognize penalties, if any, in operating expenses in the Companies’ consolidated income statements. For the nine months ended September 30, 2024 and 2023, the Companies recognized an immaterial amount of interest expense and no penalties for uncertain tax positions in their consolidated income statements. At September 30, 2024 and December 31, 2023, the Companies recognized an immaterial amount of accrued interest on their consolidated balance sheets.

In February 2024, New York State completed its examination of the Companies' New York State income and franchise tax returns for tax years 2015 through 2021 with no changes. The Companies' return for tax year 2022 remains open under the statute of limitations.

Note K – Revenue Recognition

The following table presents, for the three and nine months ended September 30, 2024 and 2023, revenue from contracts with customers as defined in ASC 606, "Revenue from Contracts with Customers," as well as additional revenue from sources other than contracts with customers, disaggregated by major source.

			For the Three Months Ended September 30, 2024												For the Three Months Ended September 30, 2023
(Millions of Dollars)			Revenues from contracts with customers						Other revenues (a)			Total operating revenues			Revenues from contracts with customers						Other revenues (a)			Total operating revenues
CECONY
Electric			$3,493						($117)			3,376			$3,195						$28			$3,223
Gas			364						(27)			337			338						(20)			318
Steam			52						(3)			49			46						3			49
Total CECONY			$3,909						$(147)			$3,762			$3,579						$11			$3,590
O&R
Electric			309						(16)			293			$242						$4			$246
Gas			6						30			36			31						4			35
Total O&R			$315						$14			$329			$273						$8			$281
Con Edison Transmission			1						—			1			1						—			1
Other (b)			—						—			—			—						—			—
Total Con Edison			$4,225						$(133)			$4,092			$3,853						$19			$3,872

(a) For the Utilities, this includes primarily revenue or negative revenue adjustments from alternative revenue programs, such as the revenue decoupling mechanisms under their New York electric and gas rate plans.

(b) Other includes the parent company, Con Edison's tax equity investments, the deferred project held for sale and consolidation adjustments. See Note S.

			For the Nine Months Ended September 30, 2024												For the Nine Months Ended September 30, 2023
(Millions of Dollars)			Revenues from contracts with customers						Other revenues (a)			Total operating revenues			Revenues from contracts with customers						Other revenues (a)			Total operating revenues
CECONY
Electric			$8,300						$(112)			$8,188			$7,449						$273			$7,722
Gas			2,177						(58)			2,119			2,117						23			2,140
Steam			436						(13)			423			414						11			425
Total CECONY			$10,913						$(183)			$10,730			$9,980						$307			$10,287
O&R
Electric			$688						(26)			$662			$574						$14			$588
Gas			173						20			193			211						4			215
Total O&R			$861						$(6)			$855			$785						$18			$803
Clean Energy Businesses (c)
Renewables			$—						$—			$—			$68						$—			$68
Energy services			—						—			—			7						—			7
Develop/Transfer Projects			—						—			—			7						—			7
Other			—						—			—			—						47			47
Total Clean Energy Businesses			$—						$—			$—			$82						$47			$129
Con Edison Transmission			3						—			3			3						—			3
Other (b)			—						(1)			(1)			—						(3)			(3)
Total Con Edison			$11,777						$(190)			$11,587			$10,850						$369			$11,219

(a) For the Utilities, this includes primarily revenue or negative revenue adjustments from alternative revenue programs, such as the revenue decoupling mechanisms under their New York electric and gas rate plans. For the Clean Energy Businesses, this included revenue from wholesale services. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note R and Note S.

(b) Other includes the parent company, Con Edison's tax equity investments, the deferred project held for sale and consolidation adjustments. See Note S.

(c) On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note R and Note S.

Use of the Percentage-of-Completion Method

Sales and profits on each percentage-of-completion contract at the Clean Energy Businesses were recorded each month based on the ratio of actual cumulative costs incurred to the total estimated costs at completion of the contract, multiplied by the total estimated contract revenue, less cumulative revenues recognized in prior periods (the ‘‘cost-to-cost’’ method). The impact of revisions of contract estimates, which may have resulted from contract modifications, performance or other reasons, were recognized on a cumulative catch-up basis in the period in which the revisions were made. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note R.

			2024												2023
(Millions of Dollars)			Unbilled contract revenue (a)						Unearned revenue (b)						Unbilled contract revenue (a)						Unearned revenue (b)
Beginning balance as of January 1,			$4						$—						$80						$3
Additions (c)			—						—						2						—
Subtractions (c)			—						—						78						3			(d)
Ending balance as of September 30,			$4						$—						$4			(e)			$—

(a)Unbilled contract revenue represents accumulated incurred costs and earned profits on contracts (revenue arrangements), which have been recorded as revenue, but have not yet been billed to customers, and which represent contract assets as defined in Topic 606. Substantially all accrued unbilled contract revenue is expected to be collected within one year. Unbilled contract revenue arises from the cost-to-cost method of revenue recognition. Unbilled contract revenue from fixed-price type contracts is converted to billed receivables when amounts are invoiced to customers according to contractual billing terms, which generally occur when deliveries or other performance milestones are completed.

(b)Unearned revenue represents a liability for billings to customers in excess of earned revenue, which are contract liabilities as defined in Topic 606.

(c)Additions for unbilled contract revenue and subtractions for unearned revenue represent additional revenue earned. Additions for unearned revenue and subtractions for unbilled contract revenue represent billings. Activity also includes appropriate balance sheet classification for the period. Of the subtractions in 2023, $21 million and $1 million relate to the sale of all of the stock of the Clean Energy Businesses for unbilled contract revenue and unearned revenue, respectively. See (e) below.

(d)Of the subtractions from unearned revenue, $3 million was included in the balances as of January 1, 2023.

(e)Following the sale of all of the stock of the Clean Energy Businesses, Con Edison received substantially all contract revenue, net of certain costs incurred, for a battery storage project located in Imperial County, California. See Note R.

Note L – Current Expected Credit Losses

Allowance for Uncollectible Accounts

The Utilities’ “Account receivable – customers” balance consists of utility bills due (bills are generally due the month following billing) from customers who have energy delivered, generated, or services provided by the Utilities. The balance also reflects the Utilities’ purchase of receivables from energy service companies to support the retail choice programs.

The “Other receivables” balance generally reflects costs billed by the Utilities for goods and services provided to external parties, such as accommodation work for private parties and certain governmental entities, real estate rental and pole attachments.

The Companies develop expected loss estimates using past events data and consider current conditions and future reasonable and supportable forecasts. Changes to the Utilities’ reserve balances that result in write-offs of customer accounts receivable balances above existing rate allowances are not reflected in rates during the term of the current rate plans. For the Utilities’ customer accounts receivable allowance for uncollectible accounts, past events considered include write-offs relative to customer accounts receivable; current conditions include macro-and micro-economic conditions related to trends in the local economy, bankruptcy rates and aged customer accounts receivable balances, among other factors; and forecasts about the future include assumptions related to the level of write-offs and recoveries. Generally, the Utilities write off customer accounts receivable as uncollectible 90 days after the account is disconnected for non-payment, or the account is closed during the collection process.

Other receivables allowance for uncollectible accounts is calculated based on a historical average of collections relative to total other receivables, including current receivables. Current macro- and micro-economic conditions are also considered when calculating the current reserve. Probable outcomes of pending litigation, whether favorable or unfavorable to the Companies, are also included in the consideration.

Starting in 2020, the economic impact of the COVID-19 pandemic was also considered in forward-looking projections related to write-off and recovery rates and resulted in increases to the allowance for uncollectible accounts. The increases to the allowance for customer uncollectible accounts for Con Edison and CECONY were $27 million and $29 million, respectively, for the three months ended September 30, 2024 and $101 million and $95 million, respectively, for the nine months ended September 30, 2024. The increases (decreases) to the allowance for customer uncollectible accounts for Con Edison and CECONY were $1 million and $3 million, respectively, for the three months ended September 30, 2023 and were $(46) million and $(45) million, respectively, for the nine months ended September 30, 2023 primarily resulting from credits issued pursuant to New York State COVID-19 arrears assistance programs.

Customer accounts receivable and the associated allowance for uncollectible accounts are included in the line “Accounts receivable – customers” on the Companies’ consolidated balance sheets. Other receivables and the associated allowance for uncollectible accounts are included in “Other receivables” on the consolidated balance sheets.

The table below presents a rollforward by major portfolio segment type for the three and nine months ended September 30, 2024 and 2023:

			For the Three Months Ended September 30,
			Con Edison												CECONY
			Accounts receivable - customers						Other receivables						Accounts receivable - customers						Other receivables
(Millions of Dollars)			2024			2023			2024			2023			2024			2023			2024						2023
Allowance for credit losses
Beginning Balance at July 1,			$434			$275			$25			$28			$419			$266			$21						$24
Recoveries			—			3			—			—			—			3			—						—
Write-offs			(65)			(43)			—			(4)			(63)			(41)			—						(3)
Reserve adjustments			92			41			(1)			7			92			41			—						6
Ending Balance September 30,			$461			$276			$24			$31			$448			$269			$21						$27

			For the Nine Months Ended September 30, 2024
			Con Edison												CECONY
			Accounts receivable - customers						Other receivables						Accounts receivable - customers						Other receivables
(Millions of Dollars)			2024			2023			2024			2023			2024			2023			2024			2023
Allowance for credit losses
Beginning Balance at January 1,			$360			$322			$13			$10			$353			$314			$9			$7
Recoveries			17			11			—			—			13			10			—			—
Write-offs			(160)			(135)			—			(5)			(152)			(130)			—			(3)
Reserve adjustments			244			78			11			26			234			75			12			23
Ending Balance September 30,			$461			$276			$24			$31			$448			$269			$21			$27

Note M – Financial Information by Business Segment

Con Edison’s principal business segments are CECONY’s regulated utility activities, O&R’s regulated utility activities and Con Edison Transmission. CECONY’s principal business segments are its regulated electric, gas and steam utility activities. The financial data for the business segments for the three and nine months ended September 30, 2024 and 2023 were as follows:

			For the Three Months Ended September 30,
			Operating revenues						Inter-segment revenues						Depreciation and amortization						Operating income (loss)
(Millions of Dollars)			2024			2023			2024			2023			2024			2023			2024			2023
CECONY
Electric			$3,376			$3,223			$5			$4			$376			$352			$998			$867
Gas			337			318			2			2			117			108			(112)			(108)
Steam			49			49			19			19			27			25			(83)			(80)
Consolidation adjustments			—			—			(26)			(25)			—			—			—			—
Total CECONY			$3,762			$3,590			$—			$—			$520			$485			$803			$679
O&R
Electric			293			246			—			—			21			19			72			59
Gas			36			35			—			—			9			7			(9)			(11)
Total O&R			$329			$281			$—			$—			$30			$26			$63			$48
Con Edison Transmission			1			1			—			—			—			1			(1)			(2)
Other (a)			—			—			—			—			—			—			(3)			(3)
Total Con Edison			$4,092			$3,872			$—			$—			$550			$512			$862			$722

(a) Other includes the parent company, Con Edison’s tax equity investments, the deferred project held for sale and consolidation adjustments. See Note S.

			For the Nine Months Ended September 30,
			Operating revenues						Inter-segment revenues						Depreciation and amortization						Operating income/(loss)
(Millions of Dollars)			2024			2023			2024			2023			2024			2023			2024			2023
CECONY
Electric			$8,188			$7,722			$15			$14			$1,090			$1,035			$1,511			$1,292
Gas			2,119			2,140			7			6			343			319			588			533
Steam			423			425			56			55			79			74			8			(75)
Consolidation adjustments			—			—			(78)			(75)			—			—			—			—
Total CECONY			$10,730			$10,287			$—			$—			$1,512			$1,428			$2,107			$1,750
O&R
Electric			662			588			—			—			61			56			97			73
Gas			193			215			—			—			26			22			30			27
Total O&R			$855			$803			$—			$—			$87			$78			$127			$100
Clean Energy Businesses (a)			—			129			—			—			—			—			—			37
Con Edison Transmission			3			3			—			—			1			1			(6)			(6)
Other (b)			(1)			(3)			—			—			1			(1)			(35)			864
Total Con Edison			$11,587			$11,219			$—			$—			$1,601			$1,506			$2,193			$2,745

(a) On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. As a result of this sale, the Clean Energy Businesses are no longer a principal segment. See Note R and Note S.

(b) Other includes the parent company, Con Edison’s tax equity investments, the deferred project held for sale and consolidation adjustments. See Note S.

Note N – Derivative Instruments and Hedging Activities

Con Edison’s subsidiaries hedge market price fluctuations associated with physical purchases and sales of electricity, natural gas, steam and, to a lesser extent, refined fuels by using derivative instruments including futures, forwards, basis swaps, options, transmission congestion contracts and financial transmission rights contracts. These are economic hedges, for which the Utilities do not elect hedge accounting. The Companies use economic hedges to manage commodity price risk in accordance with provisions set by state regulators. The volume of hedging activity at the Utilities depends upon the forecasted volume of physical commodity supply to meet customer needs, and program costs or benefits are recovered from or credited to full-service customers, respectively. Derivatives are recognized on the consolidated balance sheet at fair value (see Note O), unless an exception is available under the accounting rules for derivatives and hedging. Qualifying derivative contracts that have been designated as normal purchases or normal sales contracts are not reported at fair value under the accounting rules.

The fair values of the Companies’ derivatives including the offsetting of assets and liabilities on the consolidated balance sheet at September 30, 2024 and December 31, 2023 were:

(Millions of Dollars)			2024												2023
Balance Sheet Location			Gross Amounts of Recognized Assets (Liabilities)			Gross Amounts Offset			Net Amounts of Assets (Liabilities) (a)						Gross Amounts of Recognized Assets (Liabilities)			Gross Amounts Offset			Net Amounts of Assets (Liabilities) (a)
Con Edison
Fair value of derivative assets
Current			$64			$(53)			$11			(b)			$83			$(38)			$45			(b)
Noncurrent			44			(23)			21						77			(29)			48
Total fair value of derivative assets			$108			$(76)			$32						$160			$(67)			$93
Fair value of derivative liabilities
Current			$(159)			$57			$(102)			(b)			$(230)			$52			$(178)			(b)
Noncurrent			(147)			27			(120)						(154)			33			(121)
Total fair value of derivative liabilities			$(306)			$84			$(222)						$(384)			$85			$(299)
Net fair value derivative assets (liabilities)			$(198)			$8			$(190)						$(224)			$18			$(206)
CECONY
Fair value of derivative assets
Current			$60			$(50)			$10			(b)			$78			$(35)			$43			(b)
Noncurrent			42			(22)			20						76			(27)			49
Total fair value of derivative assets			$102			$(72)			$30						$154			$(62)			$92
Fair value of derivative liabilities
Current			$(147)			$54			$(93)			(b)			$(217)			$48			$(169)			(b)
Noncurrent			(131)			25			(106)						(139)			31			(108)
Total fair value of derivative liabilities			$(278)			$79			$(199)						$(356)			$79			$(277)
Net fair value derivative assets (liabilities)			$(176)			$7			$(169)						$(202)			$17			$(185)

(a)Derivative instruments and collateral were offset on the consolidated balance sheet as applicable under the accounting rules. The Companies enter into master agreements for their commodity derivatives. These agreements typically provide offset in the event of contract termination. In such case, generally the non-defaulting party’s payable will be offset by the defaulting party’s payable. The non-defaulting party will customarily notify the defaulting party within a specific time period and come to an agreement on the early termination amount.

(b)At September 30, 2024, margin deposits for Con Edison ($4 million and $(7) million) were classified as derivative assets and derivative liabilities, respectively, and for CECONY ($3 million and $(2) million) were classified as derivative assets and derivative liabilities, respectively, on the consolidated balance sheets, but not included in the table. At December 31, 2023 margin deposits for Con Edison ($7 million and $(15) million) were classified as derivative assets and derivative liabilities, respectively, and for CECONY ($6 million and $(10) million) were classified as derivative assets and derivative liabilities, respectively, on the consolidated balance sheets, but not included in the table. Margin is collateral, typically cash, that the holder of a derivative instrument is required to deposit in order to transact on an exchange and to cover its potential losses with its broker or the exchange.

The Utilities generally recover their prudently incurred fuel, purchased power and gas costs, including hedging gains and losses, in accordance with rate provisions approved by the applicable state utility regulators. In accordance with the accounting rules for regulated operations, the Utilities record a regulatory asset or regulatory liability to defer recognition of unrealized gains and losses on their electric and gas derivatives. As gains and losses are realized in future periods, they will be recognized as purchased power, gas and fuel costs in the Companies’ consolidated income statements.

The following table presents the realized and unrealized gains or losses on derivatives that have been deferred or recognized in earnings for the three and nine months ended September 30, 2024 and 2023:

						For the Three Months Ended September 30,
						Con Edison									CECONY
(Millions of Dollars)			Financial Statement Location			2024			2023						2024			2023
Pre-tax gains (losses) deferred in accordance with accounting rules for regulated operations:
Current			Regulatory liabilities			$(31)			$(11)						$(27)			$(9)
Noncurrent			Regulatory liabilities			(7)			(11)						(5)			(9)
Total deferred gains (losses)						$(38)			$(22)						$(32)			$(18)
Current			Regulatory assets			$(18)			$22						$(15)			$20
Current			Recoverable energy costs			(81)			(98)						(75)			(94)
Noncurrent			Regulatory assets			(39)			(34)						(34)			(29)
Total deferred gains (losses)						$(138)			$(110)						$(124)			$(103)
Net deferred gains (losses)						$(176)			$(132)						$(156)			$(121)
Pre-tax gains (losses) recognized in income
			Other operations and maintenance expense			$(1)			$1						$(1)			$1
Total pre-tax gains (losses) recognized in income						$(1)			$1						$(1)			$1

						For the Nine Months Ended September 30,
						Con Edison									CECONY
(Millions of Dollars)			Financial Statement Location			2024			2023						2024			2023
Pre-tax gains (losses) deferred in accordance with accounting rules for regulated operations:
Current			Regulatory liabilities			$(45)			$(221)						$(42)			$(203)
Noncurrent			Regulatory liabilities			(30)			(128)						(30)			(113)
Total deferred gains (losses)						$(75)			$(349)						$(72)			$(316)
Current			Regulatory assets			$104			$47						$102			$45
Current			Recoverable energy costs			(269)			(474)						(247)			(449)
Noncurrent			Regulatory assets			9			(68)						9			(63)
Total deferred gains (losses)						$(156)			$(495)						$(136)			$(467)
Net deferred gains (losses) (a)						$(231)			$(844)						$(208)			$(783)
Pre-tax gains (losses) recognized in income
			Gas purchased for resale (b)			$—			$4						$—			$—
			Non-utility revenue (b)			—			17						—			—
			Other operations and maintenance expense			—			1						—			1
			Other interest expense (b)			—			5						—			—
Total pre-tax gains (losses) recognized in income						$—			$27						$—			$1

(a)Unrealized net deferred losses on electric and gas derivatives for the Utilities decreased as a result of higher electric and gas commodity prices during the nine months ended September 30, 2024. Upon settlement, short-term deferred derivative losses generally increase the recoverable costs of electric and gas purchases.

(b)Comprised of realized and unrealized gains and losses on the derivative contracts of the Clean Energy Businesses. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note R.

The following table presents the hedged volume of Con Edison’s and CECONY’s commodity derivative transactions at September 30, 2024:

			Electric Energy (MWh) (a)(b)			Capacity (MW-mos) (a)			Natural Gas (Dt) (a)(b)			Refined Fuels (gallons)
Con Edison			36,052,760			36,600			337,880,000			2,520,000
CECONY			32,953,250			28,200			316,190,000			2,520,000

(a)Volumes are reported net of long and short positions, except natural gas collars where the volumes of long positions are reported.

(b)Excludes electric congestion and gas basis swap contracts which are associated with electric and gas contracts and hedged volumes.

The Companies are exposed to credit risk related to transactions entered into primarily for the various energy supply and hedging activities by the Utilities. Credit risk relates to the loss that may result from a counterparty’s nonperformance. The Companies use credit policies to manage this risk, including an established credit approval

process, monitoring of counterparty limits, netting provisions within agreements, collateral or prepayment arrangements, credit insurance and credit default swaps. The Companies measure credit risk exposure as the replacement cost for open energy commodity and derivative positions plus amounts owed from counterparties for settled transactions. The replacement cost of open positions represents unrealized gains, net of any unrealized losses where the Companies have a legally enforceable right to offset.

At September 30, 2024, Con Edison and CECONY had $6 million and $5 million, respectively, of credit exposure in connection with open energy supply net receivables and hedging activities, net of collateral. Con Edison’s net credit exposure consisted of $2 million with investment-grade counterparties and $4 million with commodity exchange brokers. CECONY’s net credit exposure consisted of $2 million with investment-grade counterparties and $3 million with commodity exchange brokers. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note R and Note S.

The collateral requirements associated with, and settlement of, derivative transactions are included in net cash flows from operating activities in the Companies’ consolidated statements of cash flows. Most derivative instrument contracts contain provisions that may require a party to provide collateral on its derivative instruments that are in a net liability position. The amount of collateral to be provided will depend on the fair value of the derivative instruments and the party’s credit ratings.

The following table presents the aggregate fair value of the Companies’ derivative instruments with credit-risk-related contingent features that are in a net liability position, the collateral posted for such positions and the additional collateral that would have been required to be posted had the lowest applicable credit rating been reduced one level and to below investment grade at September 30, 2024:

(Millions of Dollars)			Con Edison (a)						CECONY (a)
Aggregate fair value – net liabilities			$215						$193
Collateral posted			181						175
Additional collateral (b) (downgrade one level from current ratings)			12						3
Additional collateral (b)(c) (downgrade to below investment grade from current ratings)			166						136

(a)Non-derivative transactions for the purchase and sale of electricity and gas and qualifying derivative instruments, that have been designated as normal purchases or normal sales, are excluded from the table. These transactions primarily include purchases of electricity from independent system operators. In the event the Utilities are no longer extended unsecured credit for such purchases, the Companies would be required to post $1 million of additional collateral at September 30, 2024. For certain other such non-derivative transactions, the Companies could be required to post collateral under certain circumstances, including in the event counterparties had reasonable grounds for insecurity.

(b)The Companies measure the collateral requirements by taking into consideration the fair value amounts of derivative instruments that contain credit-risk-related contingent features that are in a net liability position plus amounts owed to counterparties for settled transactions and amounts required by counterparties for minimum financial security. The fair value amounts represent unrealized losses, net of any unrealized gains where the Companies have a legally enforceable right to offset.

(c)Derivative instruments that are net assets have been excluded from the table. At September 30, 2024, if Con Edison had been downgraded to below investment grade, it would have been required to post additional collateral for such derivative instruments of $7 million.

Note O – Fair Value Measurements

The accounting rules for fair value measurements and disclosures define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in a principal or most advantageous market. Fair value is a market-based measurement that is determined based on inputs, that refer broadly to assumptions that market participants use in pricing assets or liabilities. These inputs can be readily observable, market corroborated, or generally unobservable firm inputs. The Companies often make certain assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, and the risks inherent in the inputs to valuation techniques. The Companies use valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs.

The accounting rules for fair value measurements and disclosures established a fair value hierarchy, that prioritizes the inputs to valuation techniques used to measure fair value in three broad levels. The rules require that assets and liabilities be classified in their entirety based on the level of input that is significant to the fair value measurement. Assessing the significance of a particular input may require judgment considering factors specific to the asset or liability and may affect the valuation of the asset or liability and their placement within the fair value hierarchy. The Companies classify fair value balances based on the fair value hierarchy defined by the accounting rules for fair value measurements and disclosures as follows:

• Level 1 – Consists of assets or liabilities whose value is based on unadjusted quoted prices in active markets at the measurement date. An active market is one in which transactions for assets or liabilities occur with sufficient frequency and volume to provide pricing information on an ongoing basis. This category includes contracts traded on active exchange markets valued using unadjusted prices quoted directly from the exchange.

• Level 2 – Consists of assets or liabilities valued using industry standard models and based on prices, other than quoted prices within Level 1, that are either directly or indirectly observable as of the measurement date. The industry standard models consider observable assumptions including time value, volatility factors and current market and contractual prices for the underlying commodities, in addition to other economic measures. This category includes contracts traded on active exchanges or in over-the-counter markets priced with industry standard models.

• Level 3 – Consists of assets or liabilities whose fair value is estimated based on internally developed models or methodologies using inputs that are generally less readily observable and supported by little, if any, market activity at the measurement date. Unobservable inputs are developed based on the best available information and subject to cost benefit constraints. This category includes contracts priced using models that are internally developed and contracts placed in illiquid markets. It also includes contracts that expire after the period of time for which quoted prices are available and internal models are used to determine a significant portion of the value.

For information on the measurement of Con Edison's investment in MVP that was measured at fair value on a non-recurring basis, see Note A. Assets and liabilities measured at fair value on a recurring basis as of September 30, 2024 and December 31, 2023 are summarized below.

			2024															2023
(Millions of Dollars)			Level 1			Level 2			Level 3			Netting Adjustment (d)			Total			Level 1			Level 2			Level 3			Netting Adjustment (d)			Total
Con Edison
Derivative assets:
Commodity (a)(b)(c)			$3			$92			$1			$(60)			$36			$6			$146			$2			$(54)			$100
Mutual Funds (a)(b)			574			—			—			—			574			505			—			—			—			505
Cash Value of Life Insurance Policies (a)(b)			—			133			—			—			133			—			118			—			—			118
Total assets			$577			$225			$1			$(60)			$743			$511			$264			$2			$(54)			$723
Derivative liabilities:
Commodity (a)(b)(c)			$8			$260			$26			$(65)			229			$22			$347			$10			$(65)			$314
CECONY
Derivative assets:
Commodity (a)(b)(c)			$3			$89			$1			$(60)			$33			$6			$143			$1			$(52)			$98
Mutual Funds (a)(b)			557			—			—			—			557			488			—			—			—			488
Cash Value of Life Insurance Policies (a)(b)			—			127			—			—			127			—			113			—			—			113
Total assets			$560			$216			$1			$(60)			$717			$494			$256			$1			$(52)			$699
Derivative liabilities:
Commodity (a)(b)(c)			$6			$244			$18			$(67)			201			$20			$326			$6			$(65)			$287

(a)The Companies’ policy is to review the fair value hierarchy and recognize transfers into and transfers out of the levels at the end of each reporting period. Con Edison and CECONY had $5 million of commodity derivative assets and an immaterial amount of liabilities transferred from level 3 to level 2 during the nine months ended September 30, 2024 because of availability of observable market data due to the decrease in the terms of certain contracts from beyond three years as of December 31, 2023 to less than three years as of September 30, 2024. Con Edison and CECONY had an immaterial amount of derivative assets and $9 million and $6 million of commodity derivative liabilities, respectively, transferred from level 3 to level 2 during the year ended December 31, 2023 because of availability of observable market data due to the decrease in the terms of certain contracts from beyond three years as of September 30, 2023 to less than three years as of December 31, 2023.

(b)Level 2 assets and liabilities include investments held in the deferred compensation plan and/or non-qualified retirement plans, exchange-traded contracts where there is insufficient market liquidity to warrant inclusion in Level 1, and certain over-the-counter derivative instruments for electricity, refined products and natural gas. Derivative instruments classified as Level 2 are valued using industry standard models that incorporate corroborated observable inputs, such as pricing services or prices from similar instruments that trade in liquid markets, time value and volatility factors.

(c)The accounting rules for fair value measurements and disclosures require consideration of the impact of nonperformance risk (including credit risk) from a market participant perspective in the measurement of the fair value of assets and liabilities. At September 30, 2024 and

December 31, 2023, the Companies determined that nonperformance risk would have no material impact on their financial position or results of operations.

(d)Amounts represent the impact of legally-enforceable master netting agreements that allow the Companies to net gain and loss positions and cash collateral held or placed with the same counterparties.

The employees in the Companies’ risk management group develop and maintain the Companies’ valuation policies and procedures for, and verify pricing and fair value valuation of, commodity derivatives. Under the Companies’ policies and procedures, multiple independent sources of information are obtained for forward price curves used to value commodity derivatives. Fair value and changes in fair value of commodity derivatives are reported monthly to the Companies’ risk committees, comprised of officers and employees of the Companies that oversee energy hedging at the Utilities. The risk management group reports to the Companies’ Vice President and Treasurer.

			Fair Value of Level 3 at September 30, 2024			Valuation Techniques			Unobservable Inputs			Range			Average Market Price
			(Millions of Dollars)
Con Edison – Commodity
Electricity			$(12)			Discounted Cash Flow			Forward energy prices ($/MWh) (a)			$33.80-$109.05			$58.66
Electricity			(14)			Discounted Cash Flow			Forward capacity prices ($/kW-month) (a)			$0.96-$7.53			$3.92
Transmission Congestion Contracts			1			Discounted Cash Flow			Inter-zonal forward price curves adjusted for historical zonal losses ($/MWh) (b)			$0.18-$3.35			$1.10
Total Con Edison—Commodity			$(25)
CECONY – Commodity
Electricity			$(12)			Discounted Cash Flow			Forward energy prices ($/MWh) (a)			$35.70-$109.05			$59.06
Electricity			(6)			Discounted Cash Flow			Forward capacity prices ($/kW-month) (a)			$0.96-$7.53			$3.96
Transmission Congestion Contracts			1			Discounted Cash Flow			Inter-zonal forward price curves adjusted for historical zonal losses ($/MWh) (b)			$0.18-$3.35			$1.10
Total CECONY—Commodity			$(17)

(a)Generally, increases (decreases) in this input in isolation would result in a higher (lower) fair value measurement.

(b)Generally, increases (decreases) in this input in isolation would result in a lower (higher) fair value measurement.

The table listed below provides a reconciliation of the beginning and ending net balances for assets and liabilities measured at fair value as of September 30, 2024 and 2023 and classified as Level 3 in the fair value hierarchy:

			For the Three Months Ended September 30,
			Con Edison						CECONY
(Millions of Dollars)			2024			2023			2024			2023
Beginning balance as of July 1,			$(11)			$(7)			$(6)			$(4)
Included in earnings			(1)			2			—			1
Included in regulatory assets and liabilities			(15)			(3)			(12)			(3)
Settlements			2			(2)			1			(1)
Ending balance as of September 30,			$(25)			$(10)			$(17)			$(7)

			For the Nine Months Ended September 30,
			Con Edison						CECONY
(Millions of Dollars)			2024			2023			2024			2023
Beginning balance as of January 1,			$(8)			$15			$(5)			$(6)
Included in earnings			(6)			(2)			(2)			(1)
Included in regulatory assets and liabilities			(13)			16			(8)			10
Settlements			7			—			3			—
Decrease due to the sale of the Clean Energy Businesses (a)			—			(29)			—			—
Transfer out of level 3			(5)			(10)			(5)			(10)
Ending balance as of September 30,			$(25)			$(10)			$(17)			$(7)

(a) On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note R and Note S.

For the Utilities, realized gains and losses on Level 3 commodity derivative assets and liabilities are reported as part of purchased power, gas and fuel costs. The Utilities generally recover these costs in accordance with rate provisions approved by the applicable state public utilities regulators. See Note A. Unrealized gains and losses for commodity derivatives are generally deferred on the consolidated balance sheet in accordance with the accounting rules for regulated operations.

For the Clean Energy Businesses, realized and unrealized gains and losses on Level 3 commodity derivative assets and liabilities were reported in non-utility revenues ($17 million loss) on the consolidated income statement for the nine months ended September 30, 2023. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses and amounts for 2023 are shown through the date of sale. See Note R and Note S.

Note P – Related Party Transactions

The NYSPSC generally requires that the Utilities and Con Edison’s other subsidiaries be operated as separate entities. The Utilities and the other subsidiaries are required to have separate operating employees and operating officers of the Utilities may not be operating officers of the other subsidiaries. The Utilities may provide administrative and other services to, and receive such services from, Con Edison and its other subsidiaries only pursuant to cost allocation procedures approved by the NYSPSC. Transfers of assets between the Utilities and Con Edison or its other subsidiaries may be made only as approved by the NYSPSC. The debt of the Utilities is to be raised directly by the Utilities and not derived from Con Edison. Without the prior permission of the NYSPSC, the Utilities may not make loans to, guarantee the obligations of, or pledge assets as security for the indebtedness of Con Edison or its other subsidiaries. The NYSPSC limits the dividends that the Utilities may pay Con Edison. As a result, substantially all of the net assets of CECONY and O&R ($19,873 million and $1,134 million, respectively), at September 30, 2024, are considered restricted net assets. The NYSPSC may impose additional measures to separate, or “ring fence,” the Utilities from Con Edison and its other subsidiaries.

The costs of administrative and other services provided by CECONY to, and received by it from, Con Edison and its other subsidiaries for the three and nine months ended September 30, 2024 and 2023 were as follows:

			For the Three Months Ended September 30,
			CECONY (a)
(Millions of Dollars)			2024			2023
Cost of services provided			$39			$39
Cost of services received			$21			$21

			For the Nine Months Ended September 30,
			CECONY (a)
(Millions of Dollars)			2024			2023
Cost of services provided			$106			$105
Cost of services received			$62			$61

(a) On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note R and Note S.

In addition, CECONY and O&R have joint gas supply arrangements in connection with which CECONY sold to O&R, $14 million of natural gas for the three months ended September 30, 2024 and 2023 and $52 million and $60 million for the nine months ended September 30, 2024 and 2023, respectively. These amounts are net of the effect of related hedging transactions.

At September 30, 2024 and December 31, 2023, CECONY's net receivable from Con Edison for income taxes were $452 million and $110 million, respectively.

The Utilities perform work and incur expenses on behalf of New York Transco, a company in which Con Edison Transmission has a 45.7 percent interest in New York Transco's New York Energy Solution project and a 41.7 percent interest in New York Transco's share of the Propel NY Energy project that is jointly owned with New York Power Authority (NYPA). The Utilities bill New York Transco for such work and expenses in accordance with established policies. For the three and nine months ended September 30, 2024 and 2023, the amounts billed by the Utilities to New York Transco were immaterial.

CECONY has a 20-year transportation contract with MVP for 200,000 Dts per day of capacity. Con Edison Transmission's interest in MVP is expected to be approximately 6.6 percent. See "Investment in Mountain Valley Pipeline, LLC (MVP)" in Note A. In October 2017, the Environmental Defense Fund and the Natural Resource Defense Council requested the NYSPSC to prohibit CECONY from recovering costs under its contract with MVP unless CECONY can demonstrate that the contract is in the public interest. CECONY advised the NYSPSC that it would respond to the request if the NYSPSC were to open a proceeding to consider this request. For the three and nine months ended September 30, 2024, the amounts billed by MVP to CECONY were $12 million.

FERC has authorized CECONY to lend funds to O&R for a period of not more than 12 months, in an amount not to exceed $250 million, at prevailing market rates. At September 30, 2024 and December 31, 2023 there were no outstanding loans to O&R.

The Consolidated Edison Foundation, Inc. (the Foundation), established in December 2023, is a non-consolidated not-for-profit corporation funded by Con Edison that plans to make contributions to selected charitable organizations. In April 2024, Con Edison made a $12 million contribution to the Foundation that Con Edison accrued as an expense in “Other Income and Deductions” within its consolidated income statement for the year ended December 31, 2023.

Note Q – New Financial Accounting Standards

In November 2023, the Financial Accounting Standards Board (FASB) issued amendments to the disclosure requirements for a public entity’s reportable segments through ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures." The amendments improve the disclosures about a public entity’s reportable segments and address requests from investors for additional, more detailed information about a reportable segment’s expenses. The amendments are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. A public entity should apply these amendments retrospectively to all prior periods presented in the financial statements. The Companies do not expect the new guidance to have a material impact on their financial position, results of operations and liquidity.

In December 2023, the FASB issued amendments to the guidance on accounting for Income Taxes (Topic 740) through ASU 2023-09 to improve disclosures related to income taxes. The amendments focus on three key areas: rate reconciliation, income taxes paid, and income (or loss)/income tax expense (or benefit) from disaggregated continuing operations. For public entities, the amendments are effective for annual reporting periods beginning after December 15, 2024. Early adoption is permitted for annual financial statements. The Companies do not expect the new guidance to have a material impact on their financial position, results of operations and liquidity.

In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40) to improve disclosures about a public business entity's expenses. The ASU addresses requests from investors for more detailed information about the types of expenses (including purchases of inventory, employee compensation, depreciation, amortization, and depletion) in commonly presented expense captions. The amendments require a public business entity to disclose, in the notes to the financial statements, specified information about certain costs and expenses at each interim and annual reporting period. The amendments are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The Companies are in the process of evaluating the potential impact of the ASU on their financial position, results of operations and liquidity.

Note R – Dispositions

During the first nine months of 2022, Con Edison considered strategic alternatives with respect to the Clean Energy Businesses. On October 1, 2022, following the conclusion of such review and to allow for continued focus on the Utilities and their clean energy transition, Con Edison entered into a purchase and sale agreement pursuant to which Con Edison agreed to sell all of the stock of the Clean Energy Businesses to RWE Renewables Americas, LLC, a subsidiary of RWE for a total of $6,800 million, subject to closing adjustments. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses to RWE for $3,993 million. The preliminary purchase price at closing was adjusted (i) upward for certain cash and cash equivalents, (ii) downward for certain indebtedness and debt-like items, (iii) downward for certain transaction expenses, (iv) downward to the extent that the net working capital varied from a set target, (v) upward to the extent that capital investments incurred prior to the closing of the transaction varied from a set budget, and (vi) downward by the value allocated to Broken Bow II, a project that was not able to be conveyed to RWE upon closing of the transaction. The process to finalize the purchase price was completed during the second quarter of 2024. The final purchase price was subject to customary adjustments for timing differences and a final valuation report, among other factors. The transaction was completed at arm’s length and RWE was not, and will not be, considered a related party to Con Edison.

Con Edison's preliminary gain on the sale of all of the stock of the Clean Energy Businesses was $866 million ($784 million, after tax) for the nine months ended September 30, 2023, including an immaterial amount for the three months ended September 30, 2023. Con Edison's preliminary gain on the sale of all of the stock of the Clean Energy Businesses was $865 million ($767 million, after tax) for the year ended December 31, 2023. Cumulatively through September 30, 2024 the gain on the sale of all of the stock of the Clean Energy Businesses was $835 million ($745 million, after tax), reflecting a downward adjustment of $30 million ($22 million after-tax) for the nine month period, resulting from certain customary closing adjustments. The portion of the gain attributable to the non-controlling interest retained in certain tax-equity projects was not material. The sale included all assets, operations and projects of the Clean Energy Businesses with the exception of tax equity interests in three projects, described below, and one deferred project, Broken Bow II, a 75MW nameplate capacity wind power project located in Nebraska. See Note S. Transfer of the project depends on one outstanding counterparty consent, and if and when such consent is obtained within two years of the sale of all of the stock of the Clean Energy Businesses, i.e., by February 28, 2025, the project will transfer and the corresponding value, subject to adjustment, will be paid to Con Edison. RWE Renewables Americas, LLC operates the facility on behalf of Con Edison pursuant to certain service agreements, for which the fees are not material.

Con Edison retained the Clean Energy Businesses' tax equity investment interest in the Crane solar project and another tax equity investment interest in two solar projects located in Virginia. These tax equity partnerships produced renewable energy tax credits that can be used to reduce Con Edison’s federal income tax. These tax credits are subject to recapture, in whole or in part, if the assets are sold within a five-year period beginning on the date on which the assets are placed in service. Con Edison will continue to employ HLBV accounting for its interests in these tax equity partnerships. The combined carrying value of the retained tax equity interests is approximately $9 million at September 30, 2024.

Con Edison also retained any post-sale deferred income taxes (federal and state income taxes, including tax attributes), any valuation allowances associated with the deferred tax assets, all current federal taxes and New York State taxes and the estimated liability for uncertain tax positions. The unamortized deferred investment tax credits of the Clean Energy Businesses were recognized in full upon the completion of the sale of all of the stock of the Clean Energy Businesses.

Concurrent with entering into the purchase and sale agreement, Con Edison incurred costs in the normal course of the sale process. Transaction costs of an immaterial amount and $11 million ($8 million after-tax), were recorded in the three and nine months ended September 30, 2023, respectively, and were immaterial for the three and nine months ended September 30, 2024. Also, depreciation and amortization expense of approximately $41 million ($28 million after-tax) were not recorded on the assets of the Clean Energy Businesses in 2023 through the closing of the transaction.

Following the sale of all of the stock of the Clean Energy Businesses and pursuant to a reimbursement and indemnity agreement with RWE, Con Edison remains responsible for certain potential costs related to a battery storage project located in Imperial County, California. Con Edison's exposure under the agreement could range up to approximately $172 million. As of September 30, 2024, no material amounts were recorded as liabilities on Con Edison's consolidated balance sheet related to this agreement.

The following table shows the pre-tax operating income for the Clean Energy Businesses. The 2023 period shown is through the date of the sale of the Clean Energy Businesses; there is no applicable data for the three and nine months ended September 30, 2024.

						Nine Months Ended September 30, 2023
(Millions of Dollars)						2023
Pre-tax operating income						$25
Pre-tax operating income, excluding non-controlling interest						$21

Note S – Assets and Liabilities Held-for-Sale

On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note R. The sale included all assets, operations and projects of the Clean Energy Businesses with the exception of tax equity interests in three projects and one deferred project, Broken Bow II, a 75 MW nameplate capacity wind power project located in Nebraska. Transfer of the project from Con Edison to RWE depends on one outstanding counterparty consent, and if and when such consent is obtained within two years of the sale of all of the stock of the Clean Energy Businesses, i.e., by February 28, 2025, the project will transfer. RWE Renewables Americas, LLC operates the facility on behalf of Con Edison pursuant to certain service agreements for which the fees are not material.

At September 30, 2024, the carrying amounts of the major classes of assets and liabilities of Broken Bow II that are expected to be sold are presented on a held-for-sale basis, and accordingly exclude net deferred tax liability balances, as follows:

(Millions of Dollars)			September 30, 2024
ASSETS
CURRENT ASSETS
Cash and temporary cash investments			$1
Accrued unbilled revenue			1
Restricted cash			8
Other current assets			2
TOTAL CURRENT ASSETS			12
NON-UTILITY PLANT
Non-utility property, net accumulated depreciation			76
NET PLANT			76
OTHER NONCURRENT ASSETS
Intangible assets less accumulated amortization			72
Operating lease right-of-use asset			7
TOTAL OTHER NONCURRENT ASSETS			79
TOTAL ASSETS			$167

(Millions of Dollars)			September 30, 2024
LIABILITIES
CURRENT LIABILITIES
Long-term debt due within one year			$2
Operating lease liabilities			2
Other current liabilities			9
TOTAL CURRENT LIABILITIES			13
NONCURRENT LIABILITIES
Asset retirement obligations			3
Operating lease liabilities			5
TOTAL NONCURRENT LIABILITIES			8
LONG-TERM DEBT			59
TOTAL LIABILITIES			$80