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

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

This combined management’s discussion and analysis of financial condition and results of operations (MD&A) relates to the consolidated financial statements (the Third Quarter Financial Statements) included in this report of two separate registrants: Consolidated Edison, Inc. (Con Edison) and Consolidated Edison Company of New York, Inc. (CECONY). As used in this report, the term the “Companies” refers to Con Edison and CECONY. CECONY is a subsidiary of Con Edison and, as such, information in this MD&A about CECONY applies to Con Edison.

This MD&A should be read in conjunction with the Third Quarter Financial Statements and the notes thereto and the MD&A in Item 7 of the Companies’ combined Annual Report on Form 10-K for the year ended December 31, 2023 (File Nos.1-14514 and 1-01217, the Form 10-K) and the MD&A in Part 1, Item 2 of the Companies' combined Quarterly Reports on Form 10-Q for the quarterly periods ended March 31, 2024 and June 30, 2024 (File Nos. 1-14514 and 1-01217).

Information in any item of this report referred to in this discussion and analysis is incorporated by reference herein. The use of terms such as “see” or “refer to” shall be deemed to incorporate by reference into this discussion and analysis the information to which reference is made.

Con Edison, incorporated in New York State in 1997, is a holding company that owns all of the outstanding common stock of CECONY, Orange and Rockland Utilities, Inc. (O&R) and Con Edison Transmission, Inc. As used in this report, the term the “Utilities” refers to CECONY and O&R.


	Con Edison


CECONY	O&R	Con Edison Transmission
	•RECO

Con Edison’s principal business operations are those of the Utilities and Con Edison Transmission. CECONY’s principal business operations are its regulated electric, gas and steam delivery businesses. O&R’s principal business operations are its regulated electric and gas delivery businesses. Con Edison Transmission, through its subsidiaries, invests in electric transmission projects supporting Con Edison's effort to transition to clean, renewable energy and manages, through joint ventures, both electric and gas assets while seeking to develop electric transmission projects that will bring clean, renewable electricity to customers focusing on New York and the Northeast. See "Investments" in Note A to the Third Quarter 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 to the Third Quarter Financial Statements.

Con Edison seeks to provide shareholder value through continued dividend growth, supported by earnings growth in regulated utilities and contracted electric transmission assets. Con Edison invests to provide reliable, resilient, safe and clean energy critical for its New York and New Jersey customers. Con Edison is a responsible neighbor, helping the communities it serves become more sustainable.

In addition to the Companies’ material contingencies described in Notes B, G and H to the Third Quarter Financial Statements, the Companies’ management considers the following events, trends, and uncertainties to be important to understanding the Companies’ current and future financial condition.

Aged Accounts Receivable Balances

At September 30, 2024, CECONY’s and O&R’s customer accounts receivables balances of $2,904 million and $123 million, respectively, included aged accounts receivables (balances outstanding in excess of 60 days) of $1,654 million and $34 million, respectively. In comparison, CECONY’s and O&R’s customer accounts receivable balances at February 28, 2020 were $1,322 million and $89 million, respectively, including aged accounts receivables (balances outstanding in excess of 60 days) of $408 million and $15 million, respectively. Prior to the start of the COVID-19 pandemic, the Utilities’ practice was to write off customer accounts receivables as uncollectible 90 days after the account is disconnected for non-payment or the account is closed during the collection process. In general, the Utilities suspended collection activities and service disconnections during the COVID-19 pandemic and have since resumed such activities. CECONY’s rate plans include reconciliation of late payment charges (from January 1, 2023 through December 31, 2025 for electric and gas and from January 1, 2020 through October 31, 2026 for steam) and write-offs of customer accounts receivable balances (from January 1, 2020 through December 31, 2025 for electric and gas and from January 1, 2020 through October 31, 2026 for steam) to amounts reflected in rates, with recovery/refund from or to customers via surcharge/sur-credit. CECONY's surcharge recoveries for late payment charges and write-offs of accounts receivable balances will, collectively, be subject to separate annual caps for electric and gas that produce no more than a half percent (0.5 percent) total customer bill impact per commodity (estimated for electric to be $57.3 million, $60.3 million, $62.6 million for 2023, 2024 and 2025, respectively, and for gas to be $14.8 million, $15.9 million and $16.8 million for 2023, 2024 and 2025, respectively). CECONY's surcharge recoveries for late payment charges and write-offs of accounts receivables for steam will each be subject to an annual cap that produces no more than half percent (0.5 percent) total customer bill impact (estimated to be $2.5 million, $3.0 million and $3.5 million for 2024, 2025 and 2026, respectively). Amounts in excess of the surcharge caps will be deferred as a regulatory asset for recovery in CECONY’s next base rate cases. O&R’s 2022 - 2024 rate plans include reconciliation of late payment charges to amounts reflected in rates for years 2022 through 2024, with full recovery/refund via surcharge/sur-credit once the annual variance equals or exceeds 5 basis points of return on equity and reconciliation of write-offs of customer accounts receivable balances to amounts reflected in rates from January 1, 2020 through December 31, 2024, with full recovery/refund via surcharge/sur-credit once the annual variance equals or exceeds 5 basis points of return on equity. Although these regulatory mechanisms are in place, a continued increase in accounts receivable balances has impacted and is expected to continue to impact the Companies’ liquidity. See “Liquidity and Capital Resources,” below, and Note B and Note L to the Third Quarter Financial Statements.

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

Clean Energy Goals

The success of the Companies’ efforts to meet federal, state and city clean energy policy goals and the impact of energy consumers' efforts to meet such goals on CECONY’s electric, gas and steam businesses and O&R’s electric and gas businesses may impact the Companies’ future financial condition. The Utilities expect electric usage to increase and gas and steam usage to decrease in their service territories as federal, state and local laws and policies are enacted and implemented that aim to reduce the carbon intensity of the energy that is consumed in their respective jurisdictions. The Utilities’ and their regulators’ efforts to maintain electric reliability in their service territories as electric usage increases may also impact the Companies’ future financial condition. The long-term future of the Utilities’ gas businesses depends upon the role that natural gas or other gaseous fuels will play in facilitating New York State’s and New York City’s climate goals. In addition, the impact and costs of climate change on the Utilities’ systems and the success of the Utilities’ efforts to maintain system reliability and manage service interruptions resulting from severe weather may impact the Companies’ future financial condition, results of operations and liquidity.

Con Edison Transmission

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

CECONY

Electric

CECONY provides electric service to approximately 3.7 million customers in all of New York City (except a part of Queens) and most of Westchester County, an approximately 660 square mile service area with a population of more than nine million.

During the summer of 2024, electric peak demand in CECONY's service area was 11,822 MW (which occurred on July 16, 2024). At design conditions, electric peak demand in CECONY's service area would have been approximately 12,540 MW in 2024 compared to the company's forecast of 12,800 MW. The lower peak demand at design conditions as compared to the forecast primarily reflects lower than anticipated new business. CECONY increased its five-year forecast of average annual growth in electric peak demand in its service area at design conditions from approximately 0.7 percent (for 2024 to 2028) to approximately 1.0 percent (for 2025 to 2029).

Gas

CECONY delivers gas to approximately 1.1 million customers in Manhattan, the Bronx, parts of Queens and most of Westchester County.

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

Steam

CECONY operates the largest steam distribution system in the United States by producing and delivering approximately 15,444 MMlb of steam annually to approximately 1,510 customers in parts of Manhattan.

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

Collective Bargaining Agreement

In June 2024, CECONY reached a collective bargaining agreement with its largest union covering approximately 7,300 employees. The union subsequently ratified the four-year agreement with an effective date of June 23, 2024.

O&R

Electric

O&R and its utility subsidiary, Rockland Electric Company (RECO) (together referred to herein as O&R) provide electric service to approximately 0.3 million customers in southeastern New York and northern New Jersey an approximately 1,300 square mile service area.

During the summer of 2024, electric peak demand in O&R's service area was 1,484 MW (which occurred on July 16, 2024). At design conditions, electric peak demand in O&R's service area would have been approximately 1,533 MW in 2024 compared to O&R's forecast of 1,530 MW. O&R increased its five-year forecast of average annual growth in electric peak demand in its service area at design conditions from approximately 2.0 percent (for 2024 to 2028) to approximately 3.7 percent (for 2025 to 2029).

Gas

O&R delivers gas to over 0.1 million customers in southeastern New York.

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

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


	For the Three Months Ended September 30, 2024						For the Nine Months Ended September 30, 2024						At September 30, 2024
(Millions of Dollars, except percentages)	Operating Revenues			Net Income for Common Stock			Operating Revenues			Net Income for Common Stock			Assets
CECONY	$3,762	92	%	$537	91	%	$10,730	93	%	$1,417	95	%	$63,849	92	%
O&R	329	8		42	7		855	7		82	5		3,970	6
Total Utilities	$4,091	100	%	$579	98	%	$11,585	100	%	$1,499	100	%	$67,819	98	%
Con Edison Transmission	1	—		11	2		3	—		35	2		456	1
Other (a)	—	—		(2)	—		(1)	—		(24)	(2)		370	1
Total Con Edison	$4,092	100	%	$588	100	%	$11,587	100	%	$1,510	100	%	$68,645	100	%

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

Inflation Reduction Act

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

New York Legislation

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

Results of Operations

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


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2024	2023	2024	2023	2024	2023	2024	2023
(Millions of Dollars, except per share amounts)	Net Income for Common Stock		Earnings per Share		Net Income for Common Stock		Earnings per Share
CECONY	$537	$515	$1.55	$1.49	$1,417	$1,308	$4.10	$3.75
O&R	42	36	0.12	0.10	82	75	0.24	0.21
Clean Energy Businesses (a) (e)	—	—	—	—	—	22	—	0.06
Con Edison Transmission (c)	11	4	0.03	0.01	35	10	0.10	0.03
Other (b)	(2)	(29)	—	(0.07)	(24)	770	(0.07)	2.22
Con Edison (d)	$588	$526	$1.70	$1.53	$1,510	$2,185	$4.37	$6.27

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

(b) Other includes the parent company, Con Edison’s tax equity investments, the deferred project held for sale and consolidation adjustments. Net income for common stock and earnings per share for the nine months ended September 30, 2024 includes $(22) million (after-tax) or $(0.07) a share (after-tax) for an adjustment related to the sale of all of the stock of the Clean Energy Businesses. See Note R and Note S to the Third Quarter Financial Statements. Net income for common stock and earnings per share for the three and nine months ended September 30, 2024 also included $2 million or $0.01 a share (after-tax) and $1 million or $0.01 a share (after-tax), respectively, net of the effects of HLBV accounting for tax equity investments in certain renewable electric projects.

Net income for common stock and earnings per share for the nine months ended September 30, 2023 included an immaterial amount or $0.00 a share net of income tax impact on the net after-tax mark-to-market effects. Net income for common stock and earnings per share for the three and nine months ended September 30, 2023, respectively, also included $(3) million or $(0.01) a share and $(7) million or $(0.02) a share net of income tax impact on the effects of HLBV accounting for tax equity investments in certain renewable electric projects. Net income for common stock for the three and nine months ended September 30, 2023 also included $(5) million or $(0.01) a share and $(13) million and $(0.04) a share of transaction costs and other accruals, respectively, related to the sale of all of the stock of the Clean Energy Businesses (net of tax). Impact of the sale of the Clean Energy Businesses on the changes in state unitary tax apportionments (net of federal taxes) is $(7) million or $(0.02) per share and $(17) million or $(0.05) per share for the three and nine months ended September 30, 2023, respectively. Depreciation and amortization expenses on the assets of the Clean Energy Businesses of $(3) million or $(0.01) a share (after-tax) were not recorded for the nine months ended September 30, 2023. Net income for common stock and earnings per share for the three months ended September 30, 2023 included an increase in the state taxes on sale of $(19) million or $(0.05) a share. Net income for common stock and earnings per share for the nine months ended September 30, 2023 included $784 million (after-tax) or $2.25 a share (after-tax) for the gain on the sale of all of the stock of the Clean Energy Businesses. See Note R and Note S to the Third Quarter Financial Statements.

(c) Net income for common stock and earnings per share for the three and nine months ended September 30, 2024 includes $3 million or $0.01 a share (after-tax) for accretion of the basis difference of Con Edison's equity investment in Mountain Valley Pipeline, LLC (MVP).

(d) Earnings per share on a diluted basis were $1.69 a share and $1.52 a share for the three months ended September 30, 2024 and 2023, respectively and $4.35 a share and $6.24 a share for the nine months ended September 30, 2024 and 2023, respectively.

(e) 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 to the Third Quarter Financial Statements.

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


Variation for the Three Months Ended September 30, 2024 vs. 2023
	Net Income for Common Stock (Net of Tax) (Millions of Dollars)	Earnings per Share
CECONY (a)
Higher electric rate base	$72	$0.22
New steam rate plan effective November 2023	4	0.01
Higher interest expense	(33)	(0.10)
Higher stock-based compensation expense	(9)	(0.03)
Change in gas rate base	(3)	(0.01)





Change in incentives earned under the electric and gas earnings adjustment mechanisms	(2)	(0.01)






Other	(7)	(0.02)
Total CECONY	22	0.06
O&R (a)

Electric base rate increase	10	0.03


Higher interest expense	(3)	(0.01)
Other	(1)	—
Total O&R	6	0.02













Con Edison Transmission
Higher investment income, primarily due to allowance for funds used during construction (AFUDC) from MVP	7	0.02
Accretion of the basis difference of Con Edison's equity investment in MVP	3	0.01




Other	(3)	(0.01)

Total Con Edison Transmission	7	0.02
Other, including parent company expenses
Gain and other impacts related to the sale of the Clean Energy Businesses	31	0.08
HLBV effects	6	0.02
Lower interest income	(5)	(0.02)






Other	(5)	(0.01)
Total Other, including parent company expenses	27	0.07
Total Reported (GAAP basis)	$62	$0.17

a.Under the revenue decoupling mechanisms in the Utilities’ New York electric and gas rate plans, revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved. In general, the Utilities recover on a current basis the fuel, gas purchased for resale and purchased power costs they incur in supplying energy to their full-service customers. Accordingly, such costs do not generally affect Con Edison’s results of operations.


Variation for the Nine Months Ended September 30, 2024 vs. 2023
	Net Income for Common Stock (Net of Tax) (Millions of Dollars)	Earnings per Share
CECONY (a)
Higher electric rate base	$109	$0.31
New steam rate plan effective November 2023	63	0.18
Higher gas rate base	17	0.05
Change in incentives earned under the electric and gas earnings adjustment mechanisms	2	0.01
Impact of the NYSPSC order denying an April 2023 petition by CECONY that requested permission to capitalize costs to implement its new customer billing and information system	(37)	(0.11)
Higher operations maintenance activities	(32)	(0.09)
Higher stock-based compensation	(7)	(0.02)









Higher payroll taxes	(4)	(0.01)
Accretive effect of share repurchase	—	0.04
Other	(2)	(0.01)
Total CECONY	109	0.35
O&R (a)
Electric base rate increase	17	0.05
Gas base rate increase	2	0.01
Higher interest expense	(4)	(0.01)
Other	(8)	(0.02)
Total O&R	7	0.03
Clean Energy Businesses (b)












Total Clean Energy Businesses	(22)	(0.06)
Con Edison Transmission
Higher investment income and an income tax adjustment due to AFUDC from MVP	22	0.06



Accretion of the basis difference of Con Edison's equity investment in MVP	3	0.01
Total Con Edison Transmission	25	0.07
Other, including parent company expenses
HLBV effects	9	0.03
Gain and other impacts related to the sale of the Clean Energy Businesses	(776)	(2.23)
Lower interest income	(19)	(0.06)
Higher interest expense	(2)	(0.01)
Other	(6)	(0.02)
Total Other, including parent company expenses	(794)	(2.29)
Total Reported (GAAP basis)	$(675)	$(1.90)

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

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


	For the Three Months Ended September 30,		For the Nine Months Ended September 30,
(Millions of Dollars)	2024	2023	2024	2023
CECONY
Operations	$472	$513	$1,457	$1,383
Pensions and other postretirement benefits	35	87	104	259
Health care and other benefits	53	52	140	124
Regulatory fees and assessments (a)	136	111	350	283
Other (b)	184	71	488	292
Total CECONY	$880	$834	$2,539	$2,341
O&R	104	96	294	283
Clean Energy Businesses (c)	—	—	—	47
Con Edison Transmission	2	2	8	8
Other (d)	—	1	—	(1)
Total other operations and maintenance expenses	$986	$933	$2,841	$2,678

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

(b)Other includes the impact of the NYSPSC order denying an April 2023 petition by CECONY that requested permission to capitalize costs to implement its new customer billing and information system for the nine months ended September 30, 2024 ($51 million).

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

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

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

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


	CECONY		O&R		Con Edison Transmission		Other (a)		Con Edison (b)
(Millions of Dollars)	2024	2023	2024	2023		2024	2023	2024	2023	2024	2023
Operating revenues	$3,762	$3,590	$329	$281		$1	$1	$—	$—	$4,092	$3,872
Purchased power	642	719	101	77		—	—	—	—	743	796
Fuel	27	34	—	—		—	—	—	—	27	34
Gas purchased for resale	59	62	7	11		—	—	1	—	67	73
Other operations and maintenance	880	834	104	96		2	2	—	1	986	933
Depreciation and amortization	520	485	30	26		—	1	—	—	550	512
Taxes, other than income taxes	831	777	24	23		—	—	2	1	857	801
Loss on sale of the Clean Energy Businesses	—	—	—	—		—	—	—	(1)	—	(1)



Operating income (loss)	803	679	63	48		(1)	(2)	(3)	(3)	862	722
Other income	138	184	8	12		16	8	3	3	165	207
Net interest expense	285	239	17	13		—	—	4	7	306	259
Income (loss) before income tax expense	656	624	54	47		15	6	(4)	(7)	721	670
Income tax expense (benefit)	119	109	12	11		4	2	(2)	22	133	144
Net income (loss)	$537	$515	$42	$36		$11	$4	$(2)	$(29)	$588	$526

Net income (loss) for common stock	$537	$515	$42	$36		$11	$4	$(2)	$(29)	$588	$526

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

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

CECONY


	For the Three Months Ended September 30, 2024				For the Three Months Ended September 30, 2023
(Millions of Dollars)	Electric	Gas	Steam	2024 Total	Electric	Gas	Steam	2023 Total	2024-2023 Variation
Operating revenues	$3,376	$337	$49	$3,762	$3,223	$318	$49	$3,590	$172
Purchased power	637	—	5	642	713	—	6	719	(77)
Fuel	27	—	—	27	33	—	1	34	(7)
Gas purchased for resale	—	59	—	59	—	62	—	62	(3)
Other operations and maintenance	696	132	52	880	644	129	61	834	46
Depreciation and amortization	376	117	27	520	352	108	25	485	35
Taxes, other than income taxes	642	141	48	831	614	127	36	777	54
Operating income	$998	$(112)	$(83)	$803	$867	$(108)	$(80)	$679	$124

Electric

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


	For the Three Months Ended
(Millions of Dollars)	September 30, 2024	September 30, 2023	Variation
Operating revenues	$3,376	$3,223	$153
Purchased power	637	713	(76)
Fuel	27	33	(6)
Other operations and maintenance	696	644	52
Depreciation and amortization	376	352	24
Taxes, other than income taxes	642	614	28
Electric operating income	$998	$867	$131

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


	Millions of kWh Delivered						Revenues in Millions (a)
	For the Three Months Ended						For the Three Months Ended
Description	September 30, 2024	September 30, 2023	Variation	Percent Variation			September 30, 2024	September 30, 2023	Variation	Percent Variation
Residential/Religious (b)	4,155	3,960	195	4.9	%		$1,438	$1,233	$205	16.6	%
Commercial/Industrial	2,947	3,052	(105)	(3.4)			846	840	6	0.7
Retail choice customers	6,168	5,914	254	4.3			940	817	123	15.1
NYPA, Municipal Agency and other sales	2,653	2,657	(4)	(0.2)			290	284	6	2.1
Other operating revenues (c)	—	—	—	—			(138)	49	(187)	Large
Total	15,923	15,583	340	2.2	%	(d)	$3,376	$3,223	$153	4.7	%

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

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

(c)Other electric operating revenues generally reflect changes in the revenue decoupling mechanism current asset or regulatory liability and changes in regulatory assets and liabilities in accordance with other provisions of CECONY's rate plan.

(d)After adjusting for variations, primarily weather and billing days, electric delivery volumes in CECONY’s service area increased 1.6 percent in the three months ended September 30, 2024 compared with the 2023 period.

Operating revenues increased $153 million in the three months ended September 30, 2024 compared with the 2023 period primarily due to an increase in revenues from the electric rate plan ($168 million), offset in part by lower fuel expenses ($6 million).

Purchased power expenses decreased $76 million in the three months ended September 30, 2024 compared with the 2023 period due to lower purchased volumes ($11 million) and lower unit costs ($65 million).

Fuel expenses decreased $6 million in the three months ended September 30, 2024 compared with the 2023 period due to lower unit costs ($5 million) and lower purchased volumes from the company's electric generating facilities ($1 million).

Other operations and maintenance expenses increased $52 million in the three months ended September 30, 2024 compared with the 2023 period primarily due to higher total surcharges for assessments and fees that are collected in revenues from customers ($37 million) and an increase in stock-based compensation ($9 million).

Depreciation and amortization expenses increased $24 million in the three months ended September 30, 2024 compared with the 2023 period primarily due to higher electric utility plant balances.

Taxes, other than income taxes increased $28 million in the three months ended September 30, 2024 compared with the 2023 period due to higher property taxes ($78 million) and higher state and local revenue taxes ($2 million), offset in part by higher deferral of under-collected property taxes ($53 million).

Gas

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


	For the Three Months Ended
(Millions of Dollars)	September 30, 2024	September 30, 2023	Variation
Operating revenues	$337	$318	$19
Gas purchased for resale	59	62	(3)
Other operations and maintenance	132	129	3
Depreciation and amortization	117	108	9
Taxes, other than income taxes	141	127	14
Gas operating income	$(112)	$(108)	$(4)

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


	Thousands of Dt Delivered						Revenues in Millions (a)
	For the Three Months Ended						For the Three Months Ended
Description	September 30, 2024	September 30, 2023	Variation	Percent Variation			September 30, 2024	September 30, 2023	Variation	Percent Variation
Residential	3,557	3,884	(327)	(8.4)	%		$133	$131	$2	1.5	%
General	3,252	4,094	(842)	(20.6)			72	58	14	24.1
Firm transportation	9,726	9,953	(227)	(2.3)			103	85	18	21.2
Total firm sales and transportation	16,535	17,931	(1,396)	(7.8)	%	(b)	$308	$274	$34	12.4	%
Interruptible sales (c)	496	2,693	(2,197)	(81.6)			5	13	(8)	(61.5)
NYPA	15,611	15,214	397	2.6			1	1	—	—
Generation plants	21,255	23,215	(1,960)	(8.4)			8	6	2	33.3
Other	3,966	4,023	(57)	(1.4)			6	6	—	—
Other operating revenues (d)	—	—	—	—			9	18	(9)	(50.0)
Total	57,863	63,076	(5,213)	(8.3)	%		$337	$318	$19	6.0	%

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

(b)After adjusting for variations, primarily billing days, firm gas sales and transportation volumes in CECONY’s service area decreased 7.7 percent in the three months ended September 30, 2024 compared with the 2023 period.

(c)Includes 725 thousand and 1,819 thousand of Dt for the 2024 and 2023 periods, respectively, that are also reflected in firm transportation and other.

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

Operating revenues increased $19 million in the three months ended September 30, 2024 compared with the 2023 period primarily due to an increase in gas revenues under the company's gas rate plan ($19 million).

Gas purchased for resale decreased $3 million in the three months ended September 30, 2024 compared with the 2023 period due to lower unit costs ($7 million), offset in part by higher purchased volumes ($4 million).

Other operations and maintenance expenses increased $3 million in the three months ended September 30, 2024 compared with the 2023 period primarily due to an increase in stock-based compensation ($2 million).

Depreciation and amortization expenses increased $9 million in the three months ended September 30, 2024 compared with the 2023 period primarily due to higher gas utility plant balances.

Taxes, other than income taxes increased $14 million in the three months ended September 30, 2024 compared with the 2023 period primarily due to higher property taxes ($11 million) and lower deferral of under-collected property taxes ($4 million), offset in part by lower state and local revenue taxes ($2 million).

Steam

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


	For the Three Months Ended
(Millions of Dollars)	September 30, 2024	September 30, 2023	Variation
Operating revenues	$49	$49	$—
Purchased power	5	6	(1)
Fuel	—	1	(1)
Other operations and maintenance	52	61	(9)
Depreciation and amortization	27	25	2
Taxes, other than income taxes	48	36	12
Steam operating income	$(83)	$(80)	$(3)

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


	Millions of Pounds Delivered						Revenues in Millions
	For the Three Months Ended						For the Three Months Ended
Description	September 30, 2024	September 30, 2023	Variation	Percent Variation			September 30, 2024	September 30, 2023	Variation	Percent Variation
General	15	7	8	Large			$2	$2	$—	—	%
Apartment house	591	568	23	4.0			14	12	2	16.7
Annual power	1,677	1,796	(119)	(6.6)			34	30	4	13.3
Other operating revenues (a)	—	—	—	—			(1)	5	(6)	Large
Total	2,283	2,371	(88)	(3.7)	%	(b)	$49	$49	$—	—	%

(a)Other steam operating revenues generally reflect changes in regulatory assets and liabilities in accordance with CECONY’s rate plan.

(b)After adjusting for variations, primarily weather prior to November 1, 2023, and billing days, steam sales and deliveries in the company's service area decreased 3.0 percent in the three months ended September 30, 2024 compared with the 2023 period.

Operating revenues remained consistent in the three months ended September 30, 2024 compared with the 2023 period.

Other operations and maintenance expenses decreased $9 million in the three months ended September 30, 2024 compared with the 2023 period primarily due to lower costs for pension and other postretirement benefits, reflecting reconciliation to the rate plan level ($15 million), offset in part by an increase in the total sur-credits for assessments and fees that are collected in revenues from customers municipal infrastructure support ($1 million) and higher stock-based compensation ($1 million).

Taxes, other than income taxes increased $12 million in the three months ended September 30, 2024 compared with the 2023 period primarily due to a lower deferral of under-collected property taxes ($10 million) and higher property taxes ($2 million).

Taxes, Other Than Income Taxes

At $831 million, taxes other than income taxes remain one of CECONY’s largest operating expenses for the three months ended September 30, 2024. The principal components of, and variations in, taxes other than income taxes were:


	For the Three Months Ended September 30,
(Millions of Dollars)	2024		2023		Variation
Property taxes	$772		$681		$91
State and local taxes related to revenue receipts	115		115		—
Payroll taxes	20		19		1
Other taxes (b)	(76)		(38)		(38)
Total	$831	(a)	$777	(a)	$54

(a)Including sales tax on customers’ bills, total taxes other than income taxes in 2024 and 2023 were $1,025 million and $990 million, respectively.

(b)Including the deferral of under-collected property taxes in 2024 and 2023 of $78 million and $40 million, respectively.

Other Income (Deductions)

Other income decreased $46 million in the three months ended September 30, 2024 compared with the 2023 period primarily due to lower credits associated with components of pension and other postretirement benefits other than service cost ($44 million).

Net Interest Expense

Net interest expense increased $46 million in the three months ended September 30, 2024 compared with the 2023 period primarily due to higher interest on long-term debt ($41 million) and an increase in the carrying charges and interest on regulatory liability balances ($2 million).

Income Tax Expense

Income taxes increased $10 million in the three months ended September 30, 2024 compared with the 2023 period primarily due to higher income before income tax expense ($10 million) and various immaterial tax adjustments ($7 million), offset in part by higher amortization of excess deferred federal income taxes ($7 million).

O&R


	For the Three Months Ended September 30, 2024			For the Three Months Ended September 30, 2023
(Millions of Dollars)	Electric	Gas	2024 Total	Electric	Gas	2023 Total	2024-2023 Variation
Operating revenues	$293	$36	$329	$246	$35	$281	$48
Purchased power	101	—	101	77	—	77	24
Gas purchased for resale	—	7	7	—	11	11	(4)
Other operations and maintenance	83	21	104	76	20	96	8
Depreciation and amortization	21	9	30	19	7	26	4
Taxes, other than income taxes	16	8	24	15	8	23	1
Operating income (loss)	$72	$(9)	$63	$59	$(11)	$48	$15

Electric

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


	For the Three Months Ended
(Millions of Dollars)	September 30, 2024	September 30, 2023	Variation
Operating revenues	$293	$246	$47
Purchased power	101	77	24
Other operations and maintenance	83	76	7
Depreciation and amortization	21	19	2
Taxes, other than income taxes	16	15	1
Electric operating income	$72	$59	$13

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


	Millions of kWh Delivered						Revenues in Millions (a)
	For the Three Months Ended						For the Three Months Ended
Description	September 30, 2024	September 30, 2023	Variation	Percent Variation			September 30, 2024	September 30, 2023	Variation	Percent Variation
Residential/Religious (b)	691	627	64	10.2	%		$162	$140	$22	15.7	%
Commercial/Industrial	269	252	17	6.7			57	41	16	39.0
Retail choice customers	721	703	18	2.6			68	62	6	9.7
Public authorities	31	34	(3)	(8.8)			4	3	1	33.3
Other operating revenues (c)	—	—	—	—			2	—	2	Large
Total	1,712	1,616	96	5.9	%	(d)	$293	$246	$47	19.1	%

(a)O&R’s New York electric delivery revenues are subject to a revenue decoupling mechanism, as a result of which delivery revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved. The majority of O&R’s electric distribution revenues in New Jersey are subject to a conservation incentive program, as a result of which distribution revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved. O&R’s electric transmission revenues in New Jersey are not subject to a conservation incentive program, and as a result, changes in such volumes do impact revenues.

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

(c)Other electric operating revenues generally reflect changes in regulatory assets and liabilities in accordance with O&R’s electric rate plan.

(d)After adjusting for weather and other variations, electric delivery volumes in O&R’s service area increased 7.7 percent in the three months ended September 30, 2024 compared with the 2023 period.

Operating revenues increased $47 million in the three months ended September 30, 2024 compared with the 2023 period primarily due to higher purchased power expenses ($24 million) and higher revenues from the New York electric rate plan ($17 million).

Purchased power expense increased $24 million in the three months ended September 30, 2024 compared with the 2023 period due to higher purchased volumes ($19 million) and higher unit costs ($5 million).

Other operations and maintenance expenses increased $7 million in the three months ended September 30, 2024 compared with the 2023 period primarily due to higher costs to comply with the New Jersey Clean Energy Act ($2 million), higher regulatory amortizations ($2 million), higher non-deferred storm costs ($1 million) and higher tree trimming costs ($1 million).

Gas

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


	For the Three Months Ended
(Millions of Dollars)	September 30, 2024	September 30, 2023	Variation
Operating revenues	$36	$35	$1
Gas purchased for resale	7	11	(4)
Other operations and maintenance	21	20	1
Depreciation and amortization	9	7	2
Taxes, other than income taxes	8	8	—
Gas operating income	$(9)	$(11)	$2

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


	Thousands of Dt Delivered						Revenues in Millions (a)
	For the Three Months Ended						For the Three Months Ended
Description	September 30, 2024	September 30, 2023	Variation	Percent Variation			September 30, 2024	September 30, 2023	Variation	Percent Variation
Residential	863	908	(45)	(5.0)	%		$16	$18	$(2)	(11.1)	%
General	184	262	(78)	(29.8)			3	3	—	—
Firm transportation	542	575	(33)	(5.7)			5	4	1	25.0
Total firm sales and transportation	1,589	1,745	(156)	(8.9)	%	(b)	$24	$25	$(1)	(4.0)	%
Interruptible sales	108	896	(788)	(87.9)			1	1	—	—
Generation plants	3	3	—	—			1	—	1	Large
Other	6	7	(1)	(14.3)			1	—	1	Large
Other gas revenues	—	—	—	—			9	9	—	—
Total	1,706	2,651	(945)	(35.6)	%		$36	$35	$1	2.9	%

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

(b)After adjusting for weather and other variations, firm sales and transportation volumes in O&R's service area decreased 2.4 percent in the three months ended September 30, 2024 compared with the 2023 period.

Operating revenues increased $1 million in the three months ended September 30, 2024 compared with the 2023 period primarily due to a change in incentives earned under the earnings adjustment mechanisms ($3 million), offset in part by lower gas purchased for resale ($4 million).

Gas purchased for resale decreased $4 million in the three months ended September 30, 2024 compared with the 2023 period due to lower unit costs ($4 million).

Taxes, Other Than Income Taxes

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


	For the Three Months Ended September 30,
(Millions of Dollars)	2024		2023		Variation
Property taxes	$19		$18		$1
State and local taxes related to revenue receipts	3		3		—
Payroll taxes	2		2		—
Total	$24	(a)	$23	(a)	$1

(a)Including sales tax on customers’ bills, total taxes other than income taxes in 2024 and 2023 were $35 million and $32 million, respectively.

Other Income (Deductions)

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

Con Edison Transmission

Other Income (Deductions)

Other income increased $8 million in the three months ended September 30, 2024 compared with the 2023 period due to higher investment income from MVP ($8 million).

Other

Income Tax Expense

Income taxes decreased $24 million in the three months ended September 30, 2024 compared with the 2023 period due to non-recurring state taxes on the gain on the sale of all of the stock of the Clean Energy Businesses ($24 million) recognized in 2023.

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


	CECONY		O&R		Clean Energy Businesses (a)		Con Edison Transmission		Other (a)		Con Edison (b)
(Millions of Dollars)	2024	2023	2024	2023	2024	2023	2024	2023	2024	2023	2024	2023
Operating revenues	$10,730	$10,287	$855	$803	$—	$129	$3	$3	$(1)	$(3)	$11,587	$11,219
Purchased power	1,718	1,802	224	191	—	—	—	—	—	—	1,942	1,993
Fuel	130	241	—	—	—	—	—	—	—	—	130	241
Gas purchased for resale	352	518	51	82	—	41	—	—	(1)	(1)	402	640
Other operations and maintenance	2,539	2,341	294	283	—	47	8	8	—	(1)	2,841	2,678
Depreciation and amortization	1,512	1,428	87	78	—	—	1	1	1	(1)	1,601	1,506
Taxes, other than income taxes	2,372	2,207	72	69	—	4	—	—	4	2	2,448	2,282


Gain (Loss) on sale of the Clean Energy Businesses	—	—	—	—	—	—	—	—	(30)	866	(30)	866
Operating income	2,107	1,750	127	100	—	37	(6)	(6)	(35)	864	2,193	2,745
Other income (deductions)	436	550	24	36	—	1	46	22	1	2	507	611
Net interest expense	825	695	44	38	—	16	—	2	14	7	883	758
Income before income tax expense	1,718	1,605	107	98	—	22	40	14	(48)	859	1,817	2,598
Income tax expense	301	297	25	23	—	3	5	4	(24)	89	307	416
Net income	$1,417	$1,308	$82	$75	$—	$19	$35	$10	($24)	$770	$1,510	$2,182
Loss attributable to non-controlling interest	—	—	—	—	—	(3)	—	—	—	—	—	(3)
Net income for common stock	$1,417	$1,308	$82	$75	$—	$22	$35	$10	($24)	$770	$1,510	$2,185

(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 to the Third Quarter Financial Statements.

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

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

CECONY


	For the Nine Months Ended September 30, 2024				For the Nine Months Ended September 30, 2023
(Millions of Dollars)	Electric	Gas	Steam	2024 Total	Electric	Gas	Steam	2023 Total	2024-2023 Variation
Operating revenues	$8,188	$2,119	$423	$10,730	$7,722	$2,140	$425	$10,287	$443
Purchased power	1,697	—	21	1,718	1,771	—	31	1,802	(84)
Fuel	96	—	34	130	129	—	112	241	(111)
Gas purchased for resale	—	352	—	352	—	518	—	518	(166)
Other operations and maintenance	1,979	407	153	2,539	1,781	386	174	2,341	198
Depreciation and amortization	1,090	343	79	1,512	1,035	319	74	1,428	84
Taxes, other than income taxes	1,815	429	128	2,372	1,714	384	109	2,207	165
Operating income	$1,511	$588	$8	$2,107	$1,292	$533	$(75)	$1,750	$357

Electric

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


	For the Nine Months Ended
(Millions of Dollars)	September 30, 2024	September 30, 2023	Variation
Operating revenues	$8,188	$7,722	$466
Purchased power	1,697	1,771	(74)
Fuel	96	129	(33)
Other operations and maintenance	1,979	1,781	198
Depreciation and amortization	1,090	1,035	55
Taxes, other than income taxes	1,815	1,714	101
Electric operating income	$1,511	$1,292	$219

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


	Millions of kWh Delivered						Revenues in Millions (a)
	For the Nine Months Ended						For the Nine Months Ended
Description	September 30, 2024	September 30, 2023	Variation	Percent Variation			September 30, 2024	September 30, 2023	Variation	Percent Variation
Residential/Religious (b)	9,266	8,854	412	4.7	%		$3,304	$2,614	$690	26.4	%
Commercial/Industrial	7,827	8,179	(352)	(4.3)			2,205	2,083	122	5.9
Retail choice customers	15,788	15,363	425	2.8			2,069	1,781	288	16.2
NYPA, Municipal Agency and other sales	7,216	7,113	103	1.4			673	609	64	10.5
Other operating revenues (c)	—	—	—	—			(63)	635	(698)	Large
Total	40,097	39,509	588	1.5	%	(d)	$8,188	$7,722	$466	6.0	%

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

(d)After adjusting for variations, primarily weather and billing days, electric delivery volumes in CECONY’s service area decreased 0.2 percent in the nine months ended September 30, 2024 compared with the 2023 period.

Operating revenues increased $466 million in the nine months ended September 30, 2024 compared with the 2023 period primarily due to an increase in revenues from the electric rate plan ($445 million).

Purchased Power expenses decreased $74 million in the nine months ended September 30, 2024 compared with the 2023 period due to lower unit costs ($140 million), offset in part by higher purchased volumes ($66 million).

Fuel expenses decreased $33 million in the nine months ended September 30, 2024 compared with the 2023 period due to lower unit costs ($25 million) and lower purchased volumes from CECONY's electric generating facilities ($8 million).

Other operations and maintenance expenses increased $198 million in the nine months ended September 30, 2024 compared with the 2023 period primarily due higher total surcharges for assessments and fees that are collected in revenues from customers ($71 million), the impact of the NYSPSC order denying an April 2023 petition by CECONY that requested permission to capitalize costs to implement its new customer billing and information system in 2024 ($37 million), higher uncollectible expenses ($30 million), higher electric operations maintenance activities ($20 million), an increase in stock-based compensation ($7 million), higher health care costs ($4 million) and an increase in the costs for injuries and damages ($1 million).

Depreciation and amortization expenses increased $55 million in the nine months ended September 30, 2024 compared with the 2023 period primarily due to higher electric utility plant balances.

Taxes, other than income taxes increased $101 million in the nine months ended September 30, 2024 compared with the 2023 period primarily due to higher property taxes ($140 million) and higher state and local revenue taxes ($22 million) offset in part by a higher deferral of under-collected property taxes ($64 million).

Gas

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


	For the Nine Months Ended
(Millions of Dollars)	September 30, 2024	September 30, 2023	Variation
Operating revenues	$2,119	$2,140	$(21)
Gas purchased for resale	352	518	(166)
Other operations and maintenance	407	386	21
Depreciation and amortization	343	319	24
Taxes, other than income taxes	429	384	45
Gas operating income	$588	$533	$55

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


	Thousands of Dt Delivered						Revenues in Millions (a)
	For the Nine Months Ended						For the Nine Months Ended
Description	September 30, 2024	September 30, 2023	Variation	Percent Variation			September 30, 2024	September 30, 2023	Variation	Percent Variation
Residential	34,026	34,900	(874)	(2.5)	%		$878	$925	$(47)	(5.1)	%
General	22,485	22,756	(271)	(1.2)			487	410	77	18.8
Firm transportation	55,110	55,808	(698)	(1.3)			705	643	62	9.6
Total firm sales and transportation	111,621	113,464	(1,843)	(1.6)		(b)	2,070	1,978	92	4.7
Interruptible sales (c)	2,483	6,136	(3,653)	(59.5)			24	43	(19)	(44.2)
NYPA	44,014	39,306	4,708	12.0			2	2	—	—
Generation plants	48,169	46,449	1,720	3.7			18	20	(2)	(10.0)
Other	14,871	14,767	104	0.7			31	27	4	14.8
Other operating revenues (d)	—	—	—	—			(26)	70	(96)	Large
Total	221,158	220,122	1,036	0.5	%		$2,119	$2,140	$(21)	(1.0)	%

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

(b)After adjusting for variations, primarily billing days, firm gas sales and transportation volumes in CECONY’s service area decreased 2.8 percent in the nine months ended September 30, 2024 compared with the 2023 period.

(c)Includes 854 thousand and 2,564 thousand of Dt for the 2024 and 2023 periods, respectively, that are also reflected in firm transportation and other.

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

Operating revenues decreased $21 million in the nine months ended September 30, 2024 compared with the 2023 period primarily due to a decrease in gas purchased for resale ($166 million), higher interest accrual on net plant reconciliation ($11 million) and a change in incentives earned under the earnings adjustment mechanisms ($5 million), offset in part by an increase in revenues from the gas rate plan ($159 million).

Gas purchased for resale decreased $166 million in the nine months ended September 30, 2024 compared with the 2023 period due to lower unit costs ($204 million), offset in part by higher purchased volumes ($38 million).

Other operations and maintenance expenses increased $21 million in the nine months ended September 30, 2024 compared with the 2023 period primarily due to higher uncollectible expenses ($13 million) and the impact of the NYSPSC order denying an April 2023 petition by CECONY that requested permission to capitalize costs to implement its new customer billing and information system in 2024 ($8 million).

Depreciation and amortization expenses increased $24 million in the nine months ended September 30, 2024 compared with the 2023 period primarily due to higher gas utility plant balances.

Taxes, other than income taxes increased $45 million in the nine months ended September 30, 2024 compared with the 2023 period primarily due to a higher property taxes ($38 million) and lower deferral of under-collected property taxes ($13 million), offset in part by lower state and local taxes ($6 million).

Steam

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


	For the Nine Months Ended
(Millions of Dollars)	September 30, 2024	September 30, 2023	Variation
Operating revenues	$423	$425	$(2)
Purchased power	21	31	(10)
Fuel	34	112	(78)
Other operations and maintenance	153	174	(21)
Depreciation and amortization	79	74	5
Taxes, other than income taxes	128	109	19
Steam operating income	$8	$(75)	$83

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


	Millions of Pounds Delivered						Revenues in Millions
	For the Nine Months Ended						For the Nine Months Ended
Description	September 30, 2024	September 30, 2023	Variation	Percent Variation			September 30, 2024	September 30, 2023	Variation	Percent Variation
General	330	315	15	4.8	%		$23	$19	$4	21.1	%
Apartment house	3,612	3,408	204	6.0			119	114	5	4.4
Annual power	7,820	7,924	(104)	(1.3)			297	278	19	6.8
Other operating revenues (a)	—	—	—	—			(16)	14	(30)	Large
Total	11,762	11,647	115	1.0	%	(b)	$423	$425	$(2)	(0.5)	%

(a)Other steam operating revenues generally reflect changes in regulatory assets and liabilities in accordance with CECONY’s rate plan.

(b)After adjusting for variations, primarily weather and billing days, steam sales and deliveries decreased 3.3 percent in the nine months ended September 30, 2024 compared with the 2023 period.

Operating revenues decreased $2 million in the nine months ended September 30, 2024 compared with the 2023 period primarily due to lower fuel expenses ($78 million) and lower purchased power expenses ($10 million), offset in part by the benefit from the new steam rate plan ($85 million).

Purchased power expenses decreased $10 million in the nine months ended September 30, 2024 compared with the 2023 period due to lower unit costs ($10 million).

Fuel expenses decreased $78 million in the nine months ended September 30, 2024 compared with the 2023 period due to lower unit costs ($80 million), offset in part by higher purchased volumes from CECONY’s steam generating facilities ($2 million).

Other operations and maintenance expenses decreased $21 million in the nine months ended September 30, 2024 compared with the 2023 period primarily due to lower costs for pension and other postretirement benefits, reflecting reconciliation to the rate plan level ($45 million), offset in part by the impact of the NYSPSC order denying an April 2023 petition by CECONY that requested permission to capitalize costs to implement its new customer billing and information system in 2024 ($6 million), higher steam operations maintenance activities ($4 million), an increase in municipal infrastructure support ($4 million), higher total surcharges for assessments and fees that are collected in revenues from customers ($1 million) and an increase in stock-based compensation ($1 million).

Depreciation and amortization expenses increased $5 million in the nine months ended September 30, 2024 compared with the 2023 period primarily due to higher steam utility plant balances.

Taxes, other than income taxes increased $19 million in the nine months ended September 30, 2024 compared with the 2023 period primarily due to lower deferral of under-collected property taxes ($11 million), higher property taxes ($6 million) and higher state and local taxes ($1 million).

Taxes, Other Than Income Taxes

At $2,372 million, taxes other than income taxes remain one of CECONY’s largest operating expenses for the nine months ended September 30, 2024. The principal components of, and variations in, taxes other than income taxes were:


	For the Nine Months Ended September 30,
(Millions of Dollars)	2024		2023		Variation
Property taxes	$2,071		$1,887		$184
State and local taxes related to revenue receipts	329		312		17
Payroll taxes	71		66		5
Other taxes (b)	(99)		(58)		(41)
Total	$2,372	(a)	$2,207	(a)	$165

(a)Including sales tax on customers’ bills, total taxes other than income taxes in 2024 and 2023 were $2,923 million and $2,747 million, respectively.

(b)Including the deferral of under-collected property taxes in 2024 and 2023 of $104 million and $64 million, respectively.

Other Income (Deductions)

Other income decreased $114 million in the nine months ended September 30, 2024 compared with the 2023 period primarily due to lower costs associated with components of pension and other postretirement benefits other than service cost ($131 million), offset in part by an increase in AFUDC ($8 million) and an increase in the revenue decoupling mechanism interest accrual ($7 million).

Net Interest Expense

Net interest expense increased $130 million in the nine months ended September 30, 2024 compared with the 2023 period primarily due to higher interest expense for long-term debt ($100 million) and short-term debt ($11 million) and an increase in the carrying charges and interest on regulatory liability balances ($10 million).

Income Tax Expense

Income taxes increased $4 million in the nine months ended September 30, 2024 compared with the 2023 period primarily due to higher income before income tax expense ($28 million), higher cost of removal ($3 million) and various immaterial tax adjustments ($5 million), offset in part by higher amortization of excess deferred federal income taxes ($22 million) and the absence in 2024 of a remeasurement of state deferred income tax assets and liabilities as a result of the enacted New York State legislation in 2023 ($10 million).

O&R


	For the Nine Months Ended September 30, 2024			For the Nine Months Ended September 30, 2023
(Millions of Dollars)	Electric	Gas	2024 Total	Electric	Gas	2023 Total	2024-2023 Variation
Operating revenues	$662	$193	$855	$588	$215	$803	$52
Purchased power	224	—	224	191	—	191	33
Gas purchased for resale	—	51	51	—	82	82	(31)
Other operations and maintenance	233	61	294	223	60	283	11
Depreciation and amortization	61	26	87	56	22	78	9
Taxes, other than income taxes	47	25	72	45	24	69	3
Operating income	$97	$30	$127	$73	$27	$100	$27

Electric

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


	For the Nine Months Ended
(Millions of Dollars)	September 30, 2024	September 30, 2023	Variation
Operating revenues	$662	$588	$74
Purchased power	224	191	33
Other operations and maintenance	233	223	10
Depreciation and amortization	61	56	5
Taxes, other than income taxes	47	45	2
Electric operating income	$97	$73	$24

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


	Millions of kWh Delivered						Revenues in Millions (a)
	For the Nine Months Ended						For the Nine Months Ended
Description	September 30, 2024	September 30, 2023	Variation	Percent Variation			September 30, 2024	September 30, 2023	Variation	Percent Variation
Residential/Religious (b)	1,668	1,510	158	10.5	%		$365	$329	$36	10.9	%
Commercial/Industrial	730	745	(15)	(2.0)			131	112	19	17.0
Retail choice customers	1,938	1,761	177	10.1			157	132	25	18.9
Public authorities	86	87	(1)	(1.1)			9	9	—	—
Other operating revenues (c)	—	—	—	—			—	6	(6)	Large
Total	4,422	4,103	319	7.8	%	(d)	$662	$588	$74	12.6	%

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

(c)Other electric operating revenues generally reflect changes in regulatory assets and liabilities in accordance with O&R’s electric rate plan.

(d)After adjusting for weather and other variations, electric delivery volumes in O&R’s service area increased 3.1 percent in the nine months ended September 30, 2024 compared with the 2023 period.

Operating revenues increased $74 million in the nine months ended September 30, 2024 compared with the 2023 period primarily due to higher purchased power expenses ($33 million) and higher revenues from the New York electric rate plan ($32 million) and higher revenue related to the Clean Energy Act ($3 million).

Purchased power expenses increased $33 million in the nine months ended September 30, 2024 compared with the 2023 period due to higher purchased volumes ($30 million) and higher unit costs ($3 million).

Other operations and maintenance expenses increased $10 million in the nine months ended September 30, 2024 compared with the 2023 period primarily due to higher regulatory amortizations ($3 million), higher costs to comply with the New Jersey Clean Energy Act ($2 million), higher uncollectible expenses ($2 million) and higher tree trimming costs ($2 million).

Depreciation and Amortization expenses increased $5 million in the nine months ended September 30, 2024 compared with the 2023 period due to higher electric utility plant balances.

Gas

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


	For the Nine Months Ended
(Millions of Dollars)	September 30, 2024	September 30, 2023	Variation
Operating revenues	$193	$215	$(22)
Gas purchased for resale	51	82	(31)
Other operations and maintenance	61	60	1
Depreciation and amortization	26	22	4
Taxes, other than income taxes	25	24	1
Gas operating income	$30	$27	$3

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


	Thousands of Dt Delivered						Revenues in Millions (a)
	For the Nine Months Ended						For the Nine Months Ended
Description	September 30, 2024	September 30, 2023	Variation	Percent Variation			September 30, 2024	September 30, 2023	Variation	Percent Variation
Residential	8,620	7,640	980	12.8	%		$133	$142	$(9)	(6.3)	%
General	1,377	1,669	(292)	(17.5)			17	24	(7)	(29.2)
Firm transportation	3,869	3,783	86	2.3			29	29	—	—
Total firm sales and transportation	13,866	13,092	774	5.9		(b)	$179	$195	$(16)	(8.2)
Interruptible sales	1,411	2,656	(1,245)	(46.9)			5	4	1	25.0
Generation plants	4	4	—	—			1	—	1	Large
Other	49	312	(263)	(84.3)			1	1	—	—
Other gas revenues	—	—	—	—			7	15	(8)	(53.3)
Total	15,330	16,064	(734)	(4.6)	%		$193	$215	$(22)	(10.2)	%

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

Operating revenues decreased $22 million in the nine months ended September 30, 2024 compared with the 2023 period primarily due to a decrease in gas purchased for resale ($31 million), offset in part by a change in incentives earned under the earnings adjustment mechanisms ($4 million) and higher revenues from the New York gas rate plan ($3 million).

Gas purchased for resale decreased $31 million in the nine months ended September 30, 2024 compared with the 2023 period due to lower unit costs ($35 million), offset in part by higher purchased volumes ($4 million).

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

Taxes, Other Than Income Taxes

Taxes, other than income taxes, increased by $3 million in 2024 compared with 2023 for the nine months ended September 30, 2024. The principal components of taxes, other than income taxes, were:


	For the Nine Months Ended September 30,
(Millions of Dollars)	2024		2023		Variation
Property taxes	$54		$53		$1
State and local taxes related to revenue receipts	10		9		1
Payroll taxes	8		7		1
Total	$72	(a)	$69	(a)	$3

(a)Including sales tax on customers’ bills, total taxes other than income taxes in 2024 and 2023 were $97 million and $93 million, respectively.

Other Income (Deductions)

Other income decreased $12 million in the nine months ended September 30, 2024 compared with the 2023 period primarily due to lower credits associated with components of pension and other postretirement benefits other than service cost ($13 million).

Con Edison Transmission

Other Income (Deductions)

Other income (deductions) increased $24 million in the nine months ended September 30, 2024 compared with the 2023 period primarily due to higher investment income from MVP ($21 million) and New York Transco ($2 million).

Other

Income Tax Expense

Income taxes decreased $113 million in the nine months ended September 30, 2024 compared with the 2023 period primarily due to lower income before income tax expense ($244 million), primarily due to the prior year gain on the sale of all of the stock of the Clean Energy Businesses and offsetting non-recurring tax benefits principally from the recognition of unamortized investment tax credits ($133 million) recognized in 2023.

Clean Energy Businesses

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


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

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

Taxes, other than income taxes	—	4	(4)




Operating income	$—	$37	$(37)

Net Interest Expense

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

Income Tax Expense

Income taxes decreased $3 million in the nine months ended September 30, 2024 compared with the 2023 period primarily due to lower income before income tax expense ($6 million) and a decrease in the valuation allowance on deferred state net operating losses ($2 million), offset in part by lower renewable energy credits due to the sale of all of the stock of the Clean Energy Businesses on March 1, 2023 ($5 million).

Income (Loss) Attributable to Non-Controlling Interest

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

Liquidity and Capital Resources

The Companies monitor the financial markets closely, including borrowing rates and daily cash collections. Increases in aged accounts receivable balances, inflationary pressure and higher interest rates have increased the amount of capital needed by the Utilities and the costs of such capital. See "Interest Rate Risk," below, "Aged Accounts Receivable Balances," above and "Capital Resources," below.

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

FERC has authorized CECONY through April 30, 2026 and O&R through July 31, 2026 to issue short-term borrowings for a period of not more than 12 months, in an amount not to exceed $4,000 million and $250 million, respectively, at prevailing market rates.

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

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


	For the Nine Months Ended September 30,
	CECONY		O&R		Clean Energy Businesses (d)		Con Edison Transmission		Other (a)(b)		Con Edison (b)
(Millions of Dollars)	2024	2023	2024	2023	2024	2023	2024	2023	2024	2023	2024	2023
Operating activities	$2,087	$1,221	$121	$127	$—	$—	$13	$(145)	$83	$(22)	$2,304	$1,181
Investing activities	(3,642)	(3,178)	(226)	(208)	—	(248)	(23)	(49)	2	4,035	(3,889)	352
Financing activities	450	921	121	75	—	—	(2)	212	(77)	(3,725)	492	(2,517)
Net change for the period	(1,105)	(1,036)	16	(6)	—	(248)	(12)	18	8	288	(1,093)	(984)
Balance at beginning of period	1,138	1,056	23	35	—	248	25	—	9	191	1,195	1,530
Balance at end of period (c)	$33	$20	$39	$29	$—	$—	$13	$18	$17	$479	$102	$546
Less: Balance held for sale (d)	—	—	—	—	—	—	—	—	9	6	9	6
Balance at end of period excluding held for sale	$33	$20	$39	$29	$—	$—	$13	$18	$8	$473	$93	$540

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

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

(c) See "Reconciliation of Cash, Temporary Cash Investments and Restricted Cash" in Note A to the Third Quarter Financial Statements.

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

Cash Flows from Operating Activities

The Utilities’ cash flows from operating activities primarily reflect their energy sales and deliveries and cost of operations. The volume of energy sales and deliveries is primarily affected by factors external to the Utilities, such as customer demand, weather, market prices for energy and economic conditions. Measures that promote distributed energy resources, such as distributed generation, demand reduction and energy efficiency, also affect the volume of energy sales and deliveries.

Pursuant to their rate plans, the Utilities have recovered from customers a portion of the tax liability they will pay in the future as a result of temporary differences between the book and tax basis of assets and liabilities. These temporary differences affect the timing of cash flows, but not net income, as the Companies are required to record deferred tax assets and liabilities at the current corporate tax rate for the temporary differences. For the Utilities, credits to their customers of the net benefits of the TCJA, including the reduction of the corporate tax rate to 21 percent, decrease cash flows from operating activities. Pursuant to their rate plans, the Utilities also recover from customers the amount of property taxes they will pay. The payment of property taxes by the Utilities affects the timing of cash flows and increases the amount of short-term borrowings issued by the Utilities when property taxes are due and as property taxes increase, but generally does not impact net income. See Note J to the Third Quarter Financial Statements.

In general, the Utilities suspended service disconnections during the COVID-19 pandemic and have since resumed such activities in accordance with applicable law. At September 30, 2024, CECONY's and O&R's customer accounts receivables balances of $2,904 million and $123 million, respectively, included aged accounts receivables (balances outstanding in excess of 60 days) of $1,654 million and $34 million, respectively. A continued increase in accounts receivable balances has impacted and is expected to continue to impact the Companies' liquidity. See “Aged Accounts Receivable Balances,” above.

Net income is the result of cash and non-cash (or accrual) transactions. Only cash transactions affect the Companies’ cash flows from operating activities. Principal non-cash charges or credits include depreciation, deferred income tax expense, amortizations of certain regulatory assets and liabilities and accrued unbilled revenue. Non-cash charges or credits may also be accrued under the revenue decoupling and cost reconciliation mechanisms in the Utilities’ New York electric and gas rate plans.

Net cash flows from operating activities for the nine months ended September 30, 2024 for Con Edison were $1,123 million higher than in the 2023 period. The change in net cash flows for Con Edison primarily reflects:

an increase in accounts payable of $374 million;
higher net deferred credits, noncurrent liabilities, leases and other regulatory liabilities balances of $371 million;
a decrease in the revenue decoupling mechanism receivable of $157 million;
an increase in accrued interest of $51 million;
a decrease in other receivables and other current assets of $44 million; and
an increase in pension and retiree benefits and contributions of $9 million.

Net cash flows from operating activities for the nine months ended September 30, 2024 for CECONY were $866 million higher than in the 2023 period. The change in net cash flows for CECONY primarily reflects:

higher net deferred credits, noncurrent liabilities, leases and other regulatory liabilities balances of $418 million;
a decrease in other receivables and other current assets of $241 million;
an increase in accounts payable of $202 million; and
a decrease in the revenue decoupling mechanism receivable of $154 million.

Offset in part by

an increase in unbilled revenue and net unbilled revenue deferrals of ($40 million);
an increase in materials and supplies, including fuel oil and gas in storage of ($35 million);
a change in pensions and retiree benefits obligations of ($24 million);
a decrease in Superfund and environmental remediation costs of ($19 million); and
an increase in prepayments of ($15 million).

Cash Flows From (Used in) Investing Activities

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


	For the Nine Months Ended September 30,
(Millions of Dollars)	2024	2023	Variance
INVESTING ACTIVITIES
Utility construction expenditures	$(3,533)	$(3,097)	$(436)
Cost of removal less salvage	(335)	(289)	(46)
Non-utility construction expenditures	—	(141)	141


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

Other investing activities	(21)	(48)	27
NET CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES	$(3,889)	$352	$(4,241)

Net cash flows from investing activities for Con Edison were $4,241 million lower for the nine months ended September 30, 2024 compared with the 2023 period. The change for Con Edison primarily reflects:

the proceeds from the sale of all of the stock of the Clean Energy Businesses, net of cash and cash equivalents sold in the prior year of $3,927 million;
an increase in utility construction expenditures of $436 million; and
higher cost of removal less salvage of $46 million.

Offset in part by

a decrease in non-utility construction expenditures of ($141 million).

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


	For the Nine Months Ended September 30,
(Millions of Dollars)	2024	2023	Variance
INVESTING ACTIVITIES
Utility construction expenditures	$(3,312)	$(2,894)	$(418)
Cost of removal less salvage	(330)	(284)	(46)




NET CASH FLOWS USED IN INVESTING ACTIVITIES	$(3,642)	$(3,178)	$(464)

Net cash flows used in investing activities for CECONY were $464 million higher for the nine months ended September 30, 2024 compared with the 2023 period. The change for CECONY primarily reflects:

an increase in utility construction expenditures of $418 million; and
higher cost of removal less salvage of $46 million.

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

Cash Flows From (Used In) Financing Activities

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


	For the Nine Months Ended September 30,
(Millions of Dollars)	2024	2023	Variance
FINANCING ACTIVITIES
Net payment of short-term debt	$(229)	$(1,160)	$931
Issuance of long-term debt	1,525	500	1,025
Retirement of long-term debt	—	(60)	60
Debt issuance costs	(25)	(5)	(20)
Common stock dividends	(824)	(829)	5

Issuance of common shares for stock plans	45	41	4
Repurchase of common shares	—	(1,000)	1,000
Distribution to noncontrolling interest	—	(4)	4


NET CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES	$492	$(2,517)	$3,009

Net cash flows from financing activities for Con Edison were $3,009 million higher for the nine months ended September 30, 2024 compared with the 2023 period and reflect the following transactions:

an increase in proceeds in long-term debt of $1,025 million. In May 2024, CECONY issued $1,400 million aggregate principal amount of debentures, the net proceeds from the sale of which were used to repay short-term borrowings and for other general corporate purposes. In September 2024, O&R issued $125 million aggregate principal amount of debentures, the net proceeds from the sale of which were used to repay short-term borrowings and for other general corporate purchases. See Note C to the Third Quarter Financial Statements;
the repurchase of common shares of $1,000 million in the 2023 period;
a decrease in the net payment of short-term debt of $931 million; and
a decrease in common stock dividends of $5 million.

Offset in part by

an increase in debt issuance costs of ($20 million).

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


	For the Nine Months Ended September 30,
(Millions of Dollars)	2024	2023	Variance
FINANCING ACTIVITIES
Net payment of short-term debt	$(227)	$(502)	$275
Issuance of long-term debt	1,400	500	900
Debt issuance costs	(24)	(5)	(19)
Capital contribution by Con Edison	105	1,720	(1,615)
Dividend to Con Edison	(804)	(792)	(12)
NET CASH FLOWS FROM FINANCING ACTIVITIES	$450	$921	$(471)

Net cash flows from financing activities for CECONY were $471 million lower for the nine months ended September 30, 2024 compared with the 2023 period and reflects the following transactions:

a decrease in contributed equity from Con Edison of $1,615 million.

Offset in part by

an increase in proceeds in long-term debt of ($900 million) as described above; and
a decrease in the net payment of short-term debt of ($275 million).

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


	2024				2023
(Millions of Dollars, except Weighted Average Yield)	Outstanding at September 30,		Daily average		Outstanding at September 30,		Daily average
Con Edison	$2,059		$1,939		$1,880		$1,351
CECONY	$1,676		$1,487		$1,798		$1,313
Weighted average yield	5.1	%	5.5	%	5.5	%	5.2	%

Capital Resources

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


	Common Equity Ratio (Percent of total capitalization)
	September 30, 2024	December 31, 2023
Con Edison	48.3	49.1
CECONY	47.2	47.9

Assets, Liabilities and Equity

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


	CECONY		O&R		Con Edison Transmission		Other (a)		Con Edison (b)
(Millions of Dollars)	2024	2023	2024	2023	2024	2023	2024	2023	2024	2023
ASSETS
Current assets	$5,704	$5,981	$414	$302	$15	$25	$(53)	$229	$6,080	$6,537
Investments	692	608	23	22	417	365	4	4	1,136	999
Net plant	48,257	46,648	3,084	2,943	17	17	(1)	—	51,357	49,608
Other noncurrent assets	9,196	8,363	449	408	7	7	420	409	10,072	9,187
Total Assets	$63,849	$61,600	$3,970	$3,675	$456	$414	$370	$642	$68,645	$66,331

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities	$5,218	$5,694	$406	$349	$6	$5	$397	$414	$6,027	$6,462
Noncurrent liabilities	16,562	15,950	1,188	1,146	(68)	(76)	(400)	(236)	17,282	16,784
Long-term debt	22,196	20,810	1,242	1,118	—	—	—	(1)	23,438	21,927
Equity	19,873	19,146	1,134	1,062	518	485	373	465	21,898	21,158
Total Liabilities and Equity	$63,849	$61,600	$3,970	$3,675	$456	$414	$370	$642	$68,645	$66,331

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

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

CECONY

Current assets at September 30, 2024 were $277 million lower than at December 31, 2023. The change in current assets primarily reflects a decrease in cash and temporary cash investments ($1,105 million), offset in part by an increase in prepayments ($714 million) and accounts receivables, net of allowance for uncollectible accounts ($126 million).

Investments at September 30, 2024 were $84 million higher than at December 31, 2023. The change in investments primarily reflects increases in supplemental retirement income plan assets ($71 million) and deferred income plan assets ($12 million). See Note E to the Third Quarter Financial Statements.

Net plant at September 30, 2024 was $1,609 million higher than at December 31, 2023. The change in net plant primarily reflects an increase in electric ($1,532 million), gas ($536 million) and steam ($65 million) plant balances and an increase in construction work in progress ($520 million), offset in part by an increase in accumulated depreciation ($945 million) and a decrease in the general ($99 million) plant balance.

Other noncurrent assets at September 30, 2024 were $833 million higher than at December 31, 2023. The change in other noncurrent assets primarily reflects an increase in the regulatory assets for legacy meters ($405 million), system peak reduction and energy efficiency programs ($97 million) COVID-19 pandemic deferrals ($93 million), revenue taxes ($48 million) and electric vehicle make ready programs ($37 million). The change in regulatory assets also reflects the period's amortization of accounting costs. See Note B to the Third Quarter Financial Statements.

Current liabilities at September 30, 2024 were $476 million lower than at December 31, 2023. The change in current liabilities primarily reflects a decrease in accounts payable ($301 million), notes payable ($227 million) and a decrease in the fair value of derivative liabilities ($84 million), offset in part by an increase in accrued interest ($156 million).

Other noncurrent liabilities at September 30, 2024 were $612 million higher than at December 31, 2023. The change in other noncurrent liabilities primarily reflects an increase in the deferred income taxes and unamortized investment tax credits ($814 million) and an increase in the pensions and retiree benefits ($37 million). The increase is offset in part by a decrease in future income tax ($195 million) and deferred derivative gains - long term ($30 million). See Note B and Note E to the Third Quarter Financial Statements.

Long-term debt at September 30, 2024 was $1,386 million higher than at December 31, 2023. The change in long-term debt primarily reflects the 2024 issuances of $1,400 million of debentures. See "Liquidity and Capital Resources - Cash Flows From Financing Activities" above and Note C to the Third Quarter Financial Statements.

Equity at September 30, 2024 was $727 million higher than at December 31, 2023. The change in equity primarily reflects net income for the nine months ended September 30, 2024 ($1,417 million), capital contributions from Con Edison ($105 million) in 2024 and a change in stock awards ($9 million), offset in part by common stock dividends to Con Edison ($804 million) in 2024.

O&R

Current assets at September 30, 2024 were $112 million higher than at December 31, 2023. The change in current assets primarily reflects an increase in accounts receivable, net of allowance for uncollectible accounts ($23 million) (see "Aged Accounts Receivable Balances,” above), an increase in prepayments ($22 million), an increase in accounts receivable from affiliated companies ($20 million), an increase in cash and temporary cash investments ($16 million), an increase in the revenue decoupling mechanism receivable ($12 million) and an increase in accrued unbilled revenue ($7 million).

Net plant at September 30, 2024 was $141 million higher than at December 31, 2023. The change in net plant primarily reflects an increase in electric ($101 million), gas ($56 million) and general ($24 million) plant balances and an increase in construction work in progress ($25 million), offset in part by an increase in accumulated depreciation ($65 million).

Noncurrent assets at September 30, 2024 were $41 million higher than at December 31, 2023. The change in noncurrent assets primarily reflects an increase in regulatory assets ($52 million) and the fair value of derivative assets ($1 million), offset partially by a decrease in pension and retiree benefits ($12 million).

Current liabilities at September 30, 2024 were $57 million higher than at December 31, 2023. The change in current liabilities primarily reflects an increase in regulatory liabilities ($34 million) and an increase in accounts payable ($24 million).

Noncurrent liabilities at September 30, 2024 were $42 million higher than at December 31, 2023. The change in noncurrent liabilities primarily reflects an increase in deferred income taxes and unamortized investment tax credits ($43 million).

Long-term debt at September 30, 2024 was $124 million higher than at December 31, 2023. The change in long-term debt primarily reflects the 2024 issuance of $125 million of debentures. See "Liquidity and Capital Resources - Cash Flows From Financing Activities" above and Note C to the Third Quarter Financial Statements.

Equity at September 30, 2024 was $72 million higher than at December 31, 2023. The change in equity primarily reflects net income for the nine months ended September 30, 2024 ($82 million), capital contributions from Con Edison ($45 million) in 2024 and a change in stock awards ($1 million), offset in part by common stock dividends to Con Edison ($51 million) in 2024 and a decrease in other comprehensive income ($5 million).

Con Edison Transmission

Current assets at September 30, 2024 were $10 million lower than at December 31, 2023. The change in current assets primarily reflects lower cash and temporary investments due to a net investment in New York Transco ($7 million).

Investments at September 30, 2024 were $52 million higher than at December 31, 2023. The increase in investments reflects additional investment and investment income in New York Transco ($32 million) and investment income from MVP ($21 million).

Equity at September 30, 2024 was $33 million higher than at December 31, 2023. The change in equity primarily reflects Con Edison Transmission's earnings ($35 million), offset in part by dividends to Con Edison ($3 million).

Environmental Matters

Clean Energy Future

New York State’s Climate Leadership and Community Protection Act

In September 2024, the NYSPSC issued an order evaluating the combined gas system long-term plan (the GSLTP) filed by the Utilities in November 2023. The order directs the Utilities to make additional filings to further the process of decarbonizing their gas systems and achieving the GHG emission reduction targets established in the CLCPA. These additional filings include, among other things, a proposal for a demand response program; a non-pipes alternatives deployment plan; a report on pipeline safety, including records to substantiate maximum allowable operating pressure in certain pipe segments; a definition of hard-to-electrify customers; reports on the benefits to, and impacts on, disadvantaged communities; and a bill impact analysis that reflects reduced natural gas usage over a 20-year period for every service classification. The order also directs the Utilities to include certain information in their annual updates to the GSLTP and in their next GSLTP, due 2027, such as increases in electric load and associated reliability impacts and a description of a scenario that meets all load growth with non-pipe alternatives rather than additional infrastructure, and for the Utilities to identify a preferred pathway among the three pathways set forth in the GSLTP.

Also in September 2024, O&R entered into a settlement agreement that is subject to approval by the FERC. The settlement agreement provides for a formula rate to the NYISO tariff to enable O&R to recover the costs and a return on equity of: (1) 10.5 percent for transmission projects that O&R exercises its right of first refusal; (2) 10.85 percent for all other transmission projects selected by the NYISO to meet a public policy transmission need; and (3) the lower of the NYSPSC-determined rates or 10.6 percent for transmission projects needed to meet local New York State climate and renewable energy goals. If approved, parties to the settlement agreement would be restricted from seeking to challenge the return on equity levels for five years.

In August 2024, CECONY entered into a settlement agreement that is subject to approval by the FERC. The settlement agreement provides for a formula rate to the NYISO tariff to enable CECONY to recover the costs and a return on equity of: (1) 10.6 percent for transmission projects that CECONY exercises its right of first refusal; (2) 10.85 percent for all other transmission projects selected by the NYISO to meet a public policy transmission need; and (3) the lower of the NYSPSC-determined rates or 10.6 percent for transmission projects needed to meet local New York State climate and renewable energy goals. If approved, parties to the settlement agreement would be restricted from seeking to challenge the return on equity levels for five years.

In August 2024, New York Transco entered into a settlement agreement for its Propel NY Energy project that is subject to approval by the FERC. Con Edison Transmission has a 41.7 percent interest in New York Transco's share of the Propel NY Energy project that is jointly owned with NYPA. The settlement agreement provides for a formula rate to the NYISO tariff to enable New York Transco to recover the costs and a return on equity of 11.3 percent (which is comprised of a 10.3 percent return on equity and 75 basis points added for risk and 25 basis points added for grid enhancement). If approved, parties to the settlement agreement would be restricted from seeking to challenge the return on equity levels until after May 31, 2030. In addition, the Propel NY Energy project will receive construction work in progress and abandoned plant incentives.

Also in August 2024, the NYSPSC issued an order instituting a proceeding that directs New York utilities, including CECONY and O&R, to proactively identify and develop grid upgrades needed to meet new demand from transportation and building heating electrification across New York State. The order directs the utilities to develop a joint filing that identifies these needs and describes, among other things, timelines, utility data assumptions, evaluation criteria, cost recovery and cost allocation for projects. The order also allows each individual utility to request approval from the NYSPSC for urgent upgrades that begin construction before the completion of the joint utilities’ proposed planning process, which is estimated to occur in the first half of 2026.

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

Offshore Wind

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

construction of Empire Wind 1 to begin.

Energy Storage

In June 2024, the NYSPSC issued an order adopting an updated roadmap for achieving 6,000 MW of statewide energy storage resource deployment by 2030 and recognized the need for additional statewide energy storage of 12,000 MW by 2040 and 17,000 MW by 2050. The NYSPSC directed New York utilities, including CECONY and O&R, to study the potential of energy storage to provide non-market transmission and distribution services and identify services that are cost-effective compared to traditional alternatives.

Thermal Energy Networks

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

Superfund

Gowanus Canal

The EPA has identified 39 potentially responsible parties (PRPs) with respect to the Gowanus Canal Superfund Site, including CECONY (which the EPA indicated has facilities that may be a source of PCBs at the site). Certain federal agencies and the NYSDEC also notified potentially responsible parties (PRPs), including CECONY, of their intent to perform a natural resource damage assessment for the Gowanus Canal Superfund Site.

In March 2024, CECONY received a notice that the U.S. Fish and Wildlife Service, the NYSDEC, and the National Oceanic and Atmospheric Administration (collectively, the “Trustees”) published a Draft Natural Resource Assessment Plan, indicating that the Trustees are conducting a natural resource damage assessment to determine, among other things, the appropriate amount and type of projects needed to restore, replace, or acquire the equivalent of injured natural resources at the Gowanus Canal Superfund Site.

In June 2024, the EPA issued an order amending its January 2020 order and that requires six PRPs, including CECONY, to initiate remedial action work in the middle segment of the Gowanus Canal Superfund Site. The EPA estimated the cost of this work would be $369 million (although actual costs may be significantly higher) and has indicated the work would take several years to complete.

In the third quarter of 2024, dredging and stabilization was largely completed in the upper segment of the Gowanus Canal Superfund Site, as set forth in the January 2020 order, at a cost of approximately $260 million.

In October 2024, a PRP filed a lawsuit against the other PRPs, including CECONY, with respect to the Gowanus Canal Superfund Site. The plaintiff asserts claims pursuant to the federal Comprehensive Environmental Response, Compensation and Liability Act of 1980 and the New York Navigation Law for cleanup costs incurred, and to be incurred, by the plaintiff at the site.

CECONY is unable to estimate its exposure to liability for the Gowanus Canal Superfund Site.

Other Environmental Matters

In April 2024, a CECONY feeder in the Bronx leaked resulting in a release of approximately one thousand gallons of dielectric fluid (a non-toxic synthetic compound similar to mineral oil), a portion of which migrated to a nearby sewer system and a sheen was seen in the Bronx River. CECONY stopped the feeder leak and began the cleanup on the same day the discharge occurred. CECONY, with assistance from the NYSDEC, also placed booms in the Bronx River at various locations to collect any fluid that made it to the river through the sewer system. CECONY is addressing the remaining sheen on the river, and also voluntarily cleaned up a significant amount of debris and trash in the area of the oil sheen. In April 2024, CECONY also discovered the presence of oil in the Hudson River within the permanent containment boom surrounding Pier 98 that likely originated from an internal leak of approximately 4,400 gallons of oil at CECONY’s steam generating plant on 59th Street in Manhattan. CECONY immediately installed an additional containment boom and an absorbent boom in the Hudson River and has estimated that 72 gallons of oil was released to the river. The U.S. Coast Guard, the New York City Department of

Environmental Protection, and the NYSDEC were notified and oversaw the clean-up operations. The costs associated with these matters are not expected to have a material adverse effect on CECONY’s financial condition, results of operations or liquidity. In connection with the incidents, CECONY may incur monetary sanctions from government agencies of more than $0.3 million for violations of certain provisions regulating the discharge of materials into, and for the protection of, the environment.

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

Electric Reliability Needs

CECONY and O&R monitor the adequacy of the electric capacity resources and related developments in their service areas, and work with other parties on long-term resource adequacy and transmission security within the framework of the NYISO reliability planning process. CECONY has identified and developed a solution for a local reliability need that may begin as soon as the summer of 2026. In October 2024, the NYISO issued its 2024 Reliability Needs Assessment (RNA) that identifies a bulk power system electric reliability need in New York City beginning in the summer of 2033 primarily driven by forecasted increases in peak demand and the assumed retirement of NYPA small gas generating plants as required by New York State law. Following approval of the 2024 RNA by the NYISO board, the NYISO is expected to issue a solicitation for both market-based and regulated solutions. CECONY, as the Responsible Transmission Owner, would propose a regulated backstop solution.

Con Edison Transmission

Con Edison Transmission owns a 45.7 percent interest in New York Transco that is comprised of: a 45.7 percent interest in New York Transco's Transmission Owner Transmission Solutions (TOTS) projects; a 45.7 percent interest in New York Transco’s New York Energy Solution (NYES) project; and a 41.7 percent interest in New York Transco’s share of the Propel NY Energy project. Con Edison Transmission also owns a 71.2 percent interest in Honeoye Storage Corporation (Honeoye) and its interest in Mountain Valley Pipeline, LLC (MVP) is expected to be approximately 6.6 percent. See “Environmental Matters - Clean Energy Future - New York State’s Climate Leadership and Community Protection Act,” above.

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

Financial and Commodity Market Risks

The Companies are subject to various risks and uncertainties associated with financial and commodity markets. The most significant market risks include interest rate risk, commodity price risk and investment risk.

Interest Rate Risk

The Companies' interest rate risk primarily relates to new debt financing needed to fund capital requirements, including the construction expenditures of the Utilities and maturing debt securities, and variable-rate debt. Con Edison and its subsidiaries manage interest rate risk through the issuance of mostly fixed-rate debt with varying maturities and through opportunistic refinancing of debt. Con Edison and CECONY estimate that at September 30, 2024, a 10 percent increase in interest rates applicable to its variable rate debt would result in an increase in annual interest expense of $12 million and $10 million, respectively. Under CECONY’s current electric, gas and steam rate plans, variations in actual variable rate tax-exempt debt interest expense, including costs associated with the refinancing of the variable rate tax-exempt debt, are reconciled to levels reflected in rates.

Higher interest rates have resulted in increased interest expense on commercial paper, variable-rate debt and long-term debt issuances.

Commodity Price Risk

Con Edison’s commodity price risk primarily relates to the purchase and sale of electricity, gas and related derivative instruments. The Utilities apply risk management strategies to mitigate their related exposures. See Note N to the Third Quarter Financial Statements.

Con Edison estimates that, as of September 30, 2024, a 10 percent decline in market prices would result in a decline in fair value of $148 million for the derivative instruments used by the Utilities to hedge purchases of electricity and gas, of which $136 million is for CECONY and $12 million is for O&R. As of September 30, 2023, Con Edison estimated that a 10 percent decline in market prices would result in a decline in fair value of $177 million for the derivative instruments used by the Utilities to hedge purchases of electricity and gas, of which $165 million is for CECONY and $12 million is for O&R. Con Edison expects that any such change in fair value would be largely offset by directionally opposite changes in the cost of the electricity and gas purchased.

The Utilities do not make any margin or profit on the electricity or gas they sell. In accordance with provisions approved by state regulators, the Utilities generally recover from full-service customers the costs they incur for energy purchased for those customers, including gains and losses on certain derivative instruments used to hedge energy purchased and related costs. However, increases in electric and gas commodity prices may contribute to a slower recovery of cash from outstanding customer accounts receivable balances.

Investment Risk

The Companies’ investment risk relates to the investment of plan assets for their pension and other postretirement benefit plans. Con Edison's investment risk also relates to the investments of Con Edison Transmission that are accounted for under the equity method. See "Investments" in Note A to the Third Quarter Financial Statements.

The Companies’ current investment policy for pension plan assets includes investment targets of 26 to 30 percent equity securities, 42 to 60 percent debt securities and 14 to 30 percent alternatives. At September 30, 2024, the pension plan investments consisted of 28 percent equity securities, 51 percent debt securities and 21 percent alternatives.

For the Utilities’ pension and other postretirement benefit plans, regulatory accounting treatment is generally applied in accordance with the accounting rules for regulated operations. In accordance with the Statement of Policy issued by the NYSPSC and its current electric, gas and steam rate plans, CECONY defers for payment to or recovery from customers the difference between the pension and other postretirement benefit expenses and the amounts for such expenses reflected in rates. O&R also defers such difference pursuant to its New York rate plans.

Material Contingencies

For information concerning potential liabilities arising from the Companies’ material contingencies, see "Other Regulatory Matters" in Note B and Notes G and H to the Third Quarter Financial Statements.

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