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

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

This MD&A should be read in conjunction with the First Quarter Financial Statements and the notes thereto and the MD&A in Item 7 of the Companies’ combined Annual Report on Form 10-K for the year ended December 31, 2024 (File Nos.1-14514 and 1-01217, the Form 10-K).

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

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

									Con Edison
CECONY									O&R																		Con Edison Transmission
									•RECO

Con Edison’s principal business operations are those of the Utilities and Con Edison Transmission. CECONY’s principal business operations are its regulated electric, gas and steam delivery businesses. O&R’s principal business operations are its regulated electric and gas delivery businesses. Con Edison Transmission, through its subsidiaries, invests in electric transmission projects and manages, through joint ventures, both electric and gas assets while seeking to develop electric transmission projects. Con Edison Transmission is considering strategic alternatives with respect to its investment in Mountain Valley Pipeline, LLC (MVP) and both Con Edison Transmission and CECONY are considering strategic alternatives with respect to their investments in Honeoye Storage Corporation (Honeoye). See “Investments” in Note A to the First Quarter Financial Statements and “Con Edison Transmission” below.

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

In addition to the risks and uncertainties described in Item 1A and the Companies’ material contingencies described in Notes B, G and H to the First Quarter Financial Statements, the Companies’ management considers the following events, trends, and uncertainties to be important to understanding the Companies’ current and future financial condition.

CECONY Electric and Gas Rate Plans

In January 2025, as updated in April 2025, CECONY filed requests with the NYSPSC for electric and gas rate increases of $1,608 million and $349 million, respectively, effective January 2026. The filings reflect a return on common equity of 10.0 percent and a common equity ratio of 48 percent. CECONY’s future earnings will depend on the rates authorized in, and the other provisions of, its January 2026 electric and gas rate plans and CECONY’s ability to operate its businesses in a manner consistent with such rate plans. Therefore, the outcome of CECONY’s rate requests, which require approval by the NYSPSC, will impact the Companies’ future financial condition, results of operations and liquidity. See “Rate Plans” in Note B to the First Quarter Financial Statements.

Aged Accounts Receivable Balances

At March 31, 2025, CECONY’s and O&R’s customer accounts receivables balances of $3,232 million and $133 million, respectively, included aged accounts receivables (balances outstanding in excess of 60 days) of $1,513 million and $26 million, respectively. At December 31, 2024, CECONY’s and O&R’s customer accounts receivables balances of $2,947 million and $113 million, respectively, included aged accounts receivables (balances outstanding in excess of 60 days) of $1,652 million and $32 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 a 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 rate plans include reconciliation of uncollectible expenses and late payment charges that are subject to a combined annual threshold of $0.9 million and $0.5 million for electric and gas, respectively. Once the threshold is met, O&R will defer the variance between actual uncollectible expense and late payment charge, and the level set forth in rates that is above the threshold. Recovery/refunds will be made via surcharge/sur-credit. Surcharge recovery is subject to an annual cap that produces no more than a 0.5 percent total customer bill impact per commodity. Amounts in excess of the surcharge caps will be deferred as a regulatory asset for recovery in O&R’s next base rate cases.

Although these regulatory mechanisms are 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 First Quarter Financial Statements.

In particular, CECONY, in an effort to reduce aged accounts receivables balances, plans to continue to execute on its integrated collections strategy, which includes, among other things, implementation of payment arrangements, enhanced digital and mail communications to customers regarding collections, increased field collections by hiring new field collectors and increasing collector efficiency and employing additional call center representatives to handle in-bound call volumes. O&R's collection strategy aligns with that of CECONY's in many respects.

Electric Supply

Most of the electricity sold by CECONY to its full-service customers in 2025 was purchased through the wholesale electricity market administered by the NYISO. To reduce the volatility of its full-service customers’ electric energy costs, the company enters into derivative transactions to hedge the costs of a portion of its expected purchases through the NYISO’s wholesale electricity market.

The NYISO is interconnected with two Canadian system operators, Ontario’s Independent Electricity System Operator and Hydro-Québec, allowing for up to approximately 2500 MW and 2100 MW of imports from Ontario to New York and from Quebec to New York, respectively.

Beginning in February 2025, the President of the United States issued an executive order imposing a 10 percent tariff on most Canadian imports to the United States of “energy or energy resources.” This executive order took effect on March 4, 2025 with an exemption for goods compliant with the United States-Mexico-Canada Agreement. The federal government has not provided guidance regarding the applicability of tariffs to imported Canadian electricity and, as of March 31, 2025, no tariffs are being applied to electricity sales. In March 2025, Ontario announced a 25 percent surcharge on all U.S.-bound electricity that was subsequently paused.

These tariffs, if implemented, may result in increases in electric commodity prices. The Utilities do not make any margin or profit on the electricity they sell and generally recover these costs pursuant to their rate plans.

The Companies are monitoring these actions closely, but are unable to predict changes in regulations, regulatory guidance, legal interpretations, policy positions and implementation actions that may result from these governmental actions.

Federal Regulation

Beginning in January 2025, a series of executive orders and presidential memoranda were issued (collectively, Presidential Actions) designed to address areas such as environmental and energy regulations, domestic energy production and retention of domestic generation resources, among other things.

In April 2025, an executive order was issued by the President of the United States that directs the Attorney General to identify and take action against state laws and policies that burden the use of domestic energy resources and that are unconstitutional, preempted by federal law, or otherwise unenforceable (the April 2025 Executive Order). The April 2025 Executive Order directs the Attorney General to identify and stop the enforcement of laws and policies purporting to address climate change or involving environmental, social and governance initiatives, environmental justice, carbon or greenhouse gas emissions and funds to collect carbon penalties or carbon taxes.

The Companies are monitoring these actions closely in an effort to understand any potential impact on the Companies. The Companies are unable to predict changes in regulations, regulatory guidance, legal interpretations, policy positions and implementation actions that may result from the Presidential Actions and the April 2025 Executive Order.

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 from climate change impacts on the Utilities’ systems and the success of the Utilities’ efforts to maintain system reliability and manage service interruptions resulting from severe weather may impact the Companies’ future financial condition, results of operations and liquidity. See “Federal Regulation,” above.

Offshore Wind

In April 2025, construction of relevant marine activities associated with Empire Wind 1 offshore wind project (810 MW) were suspended in compliance with a stop work order issued by the United States Bureau of Ocean Energy Management. See "Federal Regulation," above. The project was expected to enter commercial operation in 2027 and connect to the New York City electrical grid at CECONY’s Gowanus substation. CECONY is monitoring this development. The NYISO evaluates electric reliability and supply in New York State.

Con Edison Transmission

Con Edison Transmission, through its New York Transco partnership and jointly with the New York Power Authority, is developing the Propel NY Energy transmission project, a 90-mile electric transmission project that is expected to increase high voltage transmission connections between Long Island and the rest of New York State. Con Edison Transmission is also participating in competitive solicitations to develop additional electric projects. The success of Con Edison Transmission’s efforts in these competitive solicitations and to grow its electric transmission portfolio may impact Con Edison’s future capital requirements. In January 2025, the President of the United States issued an executive order temporarily withdrawing all areas on the outer continental shelf from new offshore wind leasing, pending review by the new Administration, noting that nothing in this withdrawal affects rights under existing leases in the withdrawn areas, and further that with respect to such existing leases, the Secretary of the Interior, in consultation with the Attorney General as needed, shall conduct a comprehensive review of the ecological, economic, and environmental necessity of terminating or amending any existing wind energy leases. See “Federal Regulation” above.

Con Edison Transmission is considering strategic alternatives with respect to its investment in MVP and both Con Edison Transmission and CECONY are considering strategic alternatives with respect to their investments in Honeoye.

CECONY

Electric

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

Gas

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

Steam

CECONY operates the largest steam distribution system in the United States by producing and delivering approximately 15,494 MMlb of steam annually to approximately 1,500 customers in parts of Manhattan.

O&R

Electric

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

Gas

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

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

			For the Three Months Ended March 31, 2025															At March 31, 2025
(Millions of Dollars, except percentages)			Operating Revenues						Net Income for Common Stock												Assets
CECONY			$4,441			93		%	$745			94		%													$65,806			93		%
O&R			356			7			45			6															4,144			6
Total Utilities			$4,797			100		%	$790			100		%													$69,950			99		%
Con Edison Transmission			1			—			10			1															481			1
Other (a)			—			—			(9)			(1)															260			—
Total Con Edison			$4,798			100		%	$791			100		%													$70,691			100		%

(a)Other includes the parent company, Con Edison’s tax equity investments, consolidation adjustments and Broken Bow II, the deferred project that was classified as held for sale at December 31, 2024, the sale and transfer of which was completed in January 2025. See Note Q and Note R to the First Quarter Financial Statements.

Inflation Reduction Act

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

Beginning in 2024, based on the existing statue, the Companies are subject to and report the CAMT in their Consolidated Income Statements, Consolidated Statements of Cash Flows and the Consolidated Balance Sheets. The Companies’ CAMT liability did not exceed their regular tax liability for the three months ended March 31, 2025 and 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. Con Edison does not expect to be subject to the higher tax rate of 7.25 percent in 2025.

Results of Operations

Net income for common stock and earnings per share for the three months ended March 31, 2025 and 2024 were as follows:

			For the Three Months Ended March 31,
			2025			2024			2025			2024
(Millions of Dollars, except per share amounts)			Net Income for Common Stock						Earnings per Share
CECONY			$745			$694			$2.13			$2.01
O&R			45			37			0.13			0.11
Con Edison Transmission (a)			10			11			0.03			0.03
Other (b)			(9)			(22)			(0.03)			(0.07)
Con Edison (c)			$791			$720			$2.26			$2.08

(a)Net income for common stock and earnings per share for the three months ended March 31, 2025 includes $2 million or $0.01 a share (after-tax) for accretion of the basis difference of Con Edison's equity investment in MVP. See “Investment in MVP” in Note A to the First Quarter Financial Statements.

(b) Other includes the parent company, Con Edison’s tax equity investments, consolidation adjustments and Broken Bow II, the deferred project that was classified as held for sale at December 31, 2024, the sale and transfer of which was completed in January 2025. Net income for common stock and earnings per share for the three months ended March 31, 2025 also included $(3) million or $(0.01) a share (after-tax) on 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 three months ended March 31, 2024 includes $(22) million (after-tax) or $(0.07) a share (after-tax) for an adjustment related to the sale of the Clean Energy Businesses. See Note Q and Note R to the First Quarter Financial Statements.

(c) Earnings per share on a diluted basis were $2.25 a share and $2.08 a share for the three months ended March 31, 2025 and 2024, respectively.

The following table presents the estimated effect of major factors on earnings per share and net income for common stock for the three months ended March 31, 2025 as compared with the 2024 period.

Variation for the Three Months Ended March 31, 2025 vs. 2024
			Net Income for Common Stock (Net of Tax) (Millions of Dollars)			Earnings per Share
CECONY (a)
Steam base rate increase			$26			$0.07
Higher electric rate base			16			0.05
Higher gas rate base			12			0.03
Higher income from allowance for funds used during construction			6			0.02
Lower electric, gas and steam operations and maintenance expense			5			0.02
Higher stock-based compensation			(15)			(0.04)
Dilutive effect of share issuance			—			(0.03)
Other			1			—
Total CECONY			51			0.12
O&R (a)
Gas base rate increase			6			0.02
Electric base rate increase			3			0.01
Other			(1)			(0.01)
Total O&R			8			0.02
Con Edison Transmission
Accretion of the basis difference of Con Edison's equity investment in MVP			2			0.01
Lower investment income primarily due to the recognition in 2024 of Con Edison's proportionate share of MVP's AFUDC income			(1)			—
Other			(2)			(0.01)
Total Con Edison Transmission			(1)			—
Other, including parent company expenses (b)
Loss (gain) and other impacts related to the sale of the Clean Energy Businesses			22			0.07
HLBV effects			(3)			(0.01)
Other			(6)			(0.02)
Total Other, including parent company expenses			13			0.04
Total Reported (GAAP basis)			$71			$0.18
a.Under the revenue decoupling mechanisms in the Utilities’ New York electric and gas rate plans, revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved. The Utilities' gas and CECONY’s steam sales are subject to a weather normalization clause, as a result of which, delivery revenues reflect normal weather conditions during the heating season. In general, the Utilities recover on a current basis the fuel, gas purchased for resale and purchased power costs they incur in supplying energy to their full-service customers. Accordingly, such costs do not generally affect Con Edison’s results of operations.
b.Other includes the parent company, Con Edison's tax equity investments, consolidation adjustments and Broken Bow II, the deferred project that was classified as held for sale at December 31, 2024, the sale and transfer of which was completed in January 2025.

The Companies’ other operations and maintenance expenses for the three months ended March 31, 2025 and 2024 were as follows:

			For the Three Months Ended March 31,
(Millions of Dollars)			2025			2024
CECONY
Operations			$485			$488
Pensions and other postretirement benefits			6			39
Health care and other benefits			50			40
Regulatory fees and assessments (a)			124			107
Other			189			115
Total CECONY			$854			$789
O&R			95			96
Con Edison Transmission			2			4
Other (b)			1			(1)
Total other operations and maintenance expenses			$952			$888

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

(b)Other includes the parent company, Con Edison’s tax equity investments, consolidation adjustments and Broken Bow II, the deferred project that was classified as held for sale at December 31, 2024, the sale and transfer of which was completed in January 2025. See Note Q and Note R to the First Quarter Financial Statements.

A discussion of the results of operations by principal business segment for the three months ended March 31, 2025 and 2024 follows. For additional business segment financial information, see Note M to the First Quarter Financial Statements.

The Companies’ results of operations for the three months ended March 31, 2025 and 2024 were as follows:

			CECONY						O&R									Con Edison Transmission						Other (a)						Con Edison (b)
(Millions of Dollars)			2025			2024			2025			2024									2025			2024			2025			2024			2025			2024
Operating revenues			$4,441			$3,971			$356			$308									$1			$1			$—			$—			$4,798			$4,280
Purchased power			635			579			86			70									—			—			—			—			721			649
Fuel			127			88			—			—									—			—			—			—			127			88
Gas purchased for resale			305			235			56			32									—			—			1			—			362			267
Other operations and maintenance			854			789			95			96									2			4			1			(1)			952			888
Depreciation and amortization			533			510			31			29									—			—			—			—			564			539
Taxes, other than income taxes			920			781			26			25									—			—			1			2			947			808
Loss on sale of the Clean Energy Businesses			—			—			—			—									—			—			—			(30)			—			(30)
Operating income (loss)			1,067			989			62			56									(1)			(3)			(3)			(31)			1,125			1,011
Other income			198			156			12			8									16			18			(5)			—			221			182
Net interest expense			293			270			16			14									—			—			4			5			313			289
Income (loss) before income tax expense			972			875			58			50									15			15			(12)			(36)			1,033			904
Income tax expense (benefit)			227			181			13			13									5			4			(3)			(14)			242			184
Net income (loss) for common stock			$745			$694			$45			$37									$10			$11			$(9)			$(22)			$791			$720

(a)Other includes the parent company, Con Edison’s tax equity investments, consolidation adjustments and Broken Bow II, the deferred project that was classified as held for sale at December 31, 2024, the sale and transfer of which was completed in January 2025. See Note Q and Note R to the First Quarter Financial Statements.

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

CECONY

			For the Three Months Ended March 31, 2025												For the Three Months Ended March 31, 2024
(Millions of Dollars)			Electric			Gas			Steam			2025 Total			Electric			Gas			Steam			2024 Total			2025-2024 Variation
Operating revenues			$2,686			$1,401			$354			$4,441			$2,441			$1,243			$287			$3,971			$470
Purchased power			621			—			14			635			568			—			11			579			56
Fuel			66			—			61			127			58			—			30			88			39
Gas purchased for resale			—			305			—			305			—			235			—			235			70
Other operations and maintenance			659			139			56			854			612			128			49			789			65
Depreciation and amortization			389			118			26			533			370			114			26			510			23
Taxes, other than income taxes			662			199			59			920			593			151			37			781			139
Operating income			$289			$640			$138			$1,067			$240			$615			$134			$989			$78

Electric

CECONY’s results of electric operations for the three months ended March 31, 2025 compared with the 2024 period were as follows:

			For the Three Months Ended
(Millions of Dollars)			March 31, 2025			March 31, 2024			Variation
Operating revenues			$2,686			$2,441			$245
Purchased power			621			568			53
Fuel			66			58			8
Other operations and maintenance			659			612			47
Depreciation and amortization			389			370			19
Taxes, other than income taxes			662			593			69
Electric operating income			$289			$240			$49

CECONY’s electric sales and deliveries for the three months ended March 31, 2025 compared with the 2024 period were:

			Millions of kWh Delivered															Revenues in Millions (a)
			For the Three Months Ended															For the Three Months Ended
Description			March 31, 2025			March 31, 2024			Variation			Percent Variation						March 31, 2025			March 31, 2024			Variation			Percent Variation
Residential/Religious (b)			3,037			2,591			446			17.2		%				$1,131			$965			$166			17.2		%
Commercial/Industrial			2,912			2,672			240			9.0						867			737			130			17.6
Retail choice customers			5,183			4,768			415			8.7						603			542			61			11.3
NYPA, Municipal Agency and other sales			2,443			2,301			142			6.2						197			177			20			11.3
Other operating revenues (c)			—			—			—			—						(112)			20			(132)			Large
Total			13,575			12,332			1,243			10.1		%	(d)			$2,686			$2,441			$245			10.0		%

(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 6.2 percent in the three months ended March 31, 2025 compared with the 2024 period.

Operating revenues increased $245 million in the three months ended March 31, 2025 compared with the 2024 period primarily due to an increase in revenues from the electric rate plan ($148 million), higher purchased power expenses ($53 million) and higher operating revenue primarily driven by surcharge and lower deferral activity ($23 million).

Purchased power expenses increased $53 million in the three months ended March 31, 2025 compared with the 2024 period due to higher purchased volumes ($36 million) and higher unit costs ($17 million).

Fuel expenses increased $8 million in the three months ended March 31, 2025 compared with the 2024 period due to higher unit costs ($18 million), offset in part by lower purchased volumes from the company's electric generating facilities ($10 million).

Other operations and maintenance expenses increased $47 million in the three months ended March 31, 2025 compared with the 2024 period primarily due to higher total surcharges for assessments and fees that are collected in revenues from customers ($20 million), higher stock-based compensation ($16 million) and higher health care costs ($11 million).

Depreciation and amortization expenses increased $19 million in the three months ended March 31, 2025 compared with the 2024 period primarily due to higher electric utility plant balances.

Taxes, other than income taxes increased $69 million in the three months ended March 31, 2025 compared with the 2024 period due to higher property taxes ($67 million) and higher state and local revenue taxes ($2 million), offset in part by higher deferral of under-collected property taxes ($3 million).

Gas

CECONY’s results of gas operations for the three months ended March 31, 2025 compared with the 2024 period were as follows:

			For the Three Months Ended
(Millions of Dollars)			March 31, 2025			March 31, 2024			Variation
Operating revenues			$1,401			$1,243			$158
Gas purchased for resale			305			235			70
Other operations and maintenance			139			128			11
Depreciation and amortization			118			114			4
Taxes, other than income taxes			199			151			48
Gas operating income			$640			$615			$25

CECONY’s gas sales and deliveries, excluding off-system sales, for the three months ended March 31, 2025 compared with the 2024 period were:

			Thousands of Dt Delivered															Revenues in Millions (a)
			For the Three Months Ended															For the Three Months Ended
Description			March 31, 2025			March 31, 2024			Variation			Percent Variation						March 31, 2025			March 31, 2024			Variation			Percent Variation
Residential			26,261			20,652			5,609			27.2		%				$592			$501			$91			18.2		%
General			15,881			12,519			3,362			26.9						336			275			61			22.2
Firm transportation			35,084			29,498			5,586			18.9						430			405			25			6.2
Total firm sales and transportation			77,226			62,669			14,557			23.2		%	(b)			$1,358			$1,181			$177			15.0		%
Interruptible sales			1,110			1,185			(75)			(6.3)						12			12			—			—
NYPA			9,900			12,991			(3,091)			(23.8)						1			1			—			—
Generation plants			12,697			12,949			(252)			(1.9)						4			5			(1)			(20.0)
Other			6,247			6,290			(43)			(0.7)						15			14			1			7.1
Other operating revenues (c)			—			—			—			—						11			30			(19)			(63.3)
Total			107,180			96,084			11,096			11.5		%				$1,401			$1,243			$158			12.7		%

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

(b)After adjusting for variations, primarily billing days, firm gas sales and transportation volumes in CECONY’s service area increased 1.9 percent in the three months ended March 31, 2025 compared with the 2024 period.

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

Operating revenues increased $158 million in the three months ended March 31, 2025 compared with the 2024 period primarily due to an increase in gas revenues under the company's gas rate plan ($89 million) and higher gas

purchased for resale expenses ($70 million), offset in part by higher interest accrual on net plant reconciliations ($8 million).

Gas purchased for resale increased $70 million in the three months ended March 31, 2025 compared with the 2024 period due to higher unit costs ($55 million) and higher purchased volumes ($15 million).

Other operations and maintenance expenses increased $11 million in the three months ended March 31, 2025 compared with the 2024 period primarily due to higher total surcharges for assessments and fees that are collected in revenues from customers ($4 million), uncollectible expenses ($4 million) and higher stock-based compensation ($3 million).

Depreciation and amortization expenses increased $4 million in the three months ended March 31, 2025 compared with the 2024 period primarily due to higher gas utility plant balances.

Taxes, other than income taxes increased $48 million in the three months ended March 31, 2025 compared with the 2024 period primarily due to lower deferral of under-collected property taxes ($34 million), higher property taxes ($9 million) and higher state and local revenue taxes ($5 million).

Steam

CECONY’s results of steam operations for the three months ended March 31, 2025 compared with the 2024 period were as follows:

			For the Three Months Ended
(Millions of Dollars)			March 31, 2025			March 31, 2024			Variation
Operating revenues			$354			$287			$67
Purchased power			14			11			3
Fuel			61			30			31
Other operations and maintenance			56			49			7
Depreciation and amortization			26			26			—
Taxes, other than income taxes			59			37			22
Steam operating income			$138			$134			$4

CECONY’s steam sales and deliveries for the three months ended March 31, 2025 compared with the 2024 period were:

			Millions of Pounds Delivered															Revenues in Millions
			For the Three Months Ended															For the Three Months Ended
Description			March 31, 2025			March 31, 2024			Variation			Percent Variation						March 31, 2025			March 31, 2024			Variation			Percent Variation
General			308			251			57			22.7		%				$20			$17			$3			17.6		%
Apartment house			2,355			2,105			250			11.9						95			78			17			21.8
Annual power			5,007			4,293			714			16.6						240			202			38			18.8
Other operating revenues (a)			—			—			—			—						(1)			(10)			9			(90.0)
Total			7,670			6,649			1,021			15.4		%	(b)			$354			$287			$67			23.3		%

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

(b)After adjusting for variations, primarily weather prior to November 1, 2023, and billing days, steam sales and deliveries in the company's service area decreased 4.9 percent in the three months ended March 31, 2025 compared with the 2024 period.

Operating revenues increased $67 million in the three months ended March 31, 2025 compared with the 2024 period primarily due to an increase in steam revenues under the company's steam rate plan ($33 million), higher fuel expenses ($31 million) and higher purchased power expenses ($3 million).

Purchased power expenses increased $3 million in the three months ended March 31, 2025 compared with the 2024 period due to higher unit costs ($4 million), offset in part by lower purchased volumes ($1 million).

Fuel expenses increased $31 million in the three months ended March 31, 2025 compared with the 2024 period due to higher unit costs ($26 million) and higher purchased volumes from the company’s steam generating facilities ($5 million).

Other operations and maintenance expenses increased $7 million in the three months ended March 31, 2025 compared with the 2024 period primarily due to an increase in municipal infrastructure support ($4 million), higher stock-based compensation ($1 million), higher costs for pension and other postretirement benefits, reflecting reconciliation to the rate plan level ($1 million) and higher health care costs ($1 million).

Taxes, other than income taxes increased $22 million in the three months ended March 31, 2025 compared with the 2024 period primarily due to a lower deferral of under-collected property taxes ($19 million), higher property taxes ($1 million) and higher state and local revenue taxes ($1 million).

Taxes, Other Than Income Taxes

At $920 million, taxes other than income taxes remain one of CECONY’s largest operating expenses for the three months ended March 31, 2025. The principal components of, and variations in, taxes other than income taxes were:

			For the Three Months Ended March 31,
(Millions of Dollars)			2025						2024						Variation
Property taxes			$726						$649						$77
State and local taxes related to revenue receipts			128						120						8
Payroll taxes			35						31						4
Other taxes (b)			31						(19)						50
Total			$920			(a)			$781			(a)			$139

(a)Including sales tax on customers’ bills, total taxes other than income taxes in 2025 and 2024 were $1,157 million and $978 million, respectively.

(b)Including the deferral of over-collected property taxes in 2025 of $30 million and the deferral of under-collected property taxes in 2024 of $20 million, respectively.

Other Income (Deductions)

Other income increased $42 million in the three months ended March 31, 2025 compared with the 2024 period primarily due to higher credits associated with components of pension and other postretirement benefits other than service cost ($46 million), offset in part by higher expenses resulting from investment performance in the deferred compensation plan ($7 million).

Net Interest Expense

Net interest expense increased $23 million in the three months ended March 31, 2025 compared with the 2024 period primarily due to higher interest on long-term debt resulting from increased debt balances ($34 million), offset in part by lower interest on short-term debt ($15 million).

Income Tax Expense

Income taxes increased $46 million in the three months ended March 31, 2025 compared with the 2024 period primarily due to higher income before income tax expense ($26 million) and lower amortization of excess deferred federal income taxes ($39 million), offset in part by a higher benefit from the annual amortization of Metropolitan Transportation Authority (MTA) tax-surcredit ($12 million) and higher write-offs of uncollectible accounts, net of COVID-19 assistance ($7 million).

O&R

			For the Three Months Ended March 31, 2025									For the Three Months Ended March 31, 2024
(Millions of Dollars)			Electric			Gas			2025 Total			Electric			Gas			2024 Total			2025-2024 Variation
Operating revenues			$215			$141			$356			$195			$113			$308			$48
Purchased power			86			—			86			70			—			70			16
Gas purchased for resale			—			56			56			—			32			32			24
Other operations and maintenance			75			20			95			75			21			96			(1)
Depreciation and amortization			21			10			31			20			9			29			2
Taxes, other than income taxes			16			10			26			16			9			25			1
Operating income (loss)			$17			$45			$62			$14			$42			$56			$6

Electric

O&R’s results of electric operations for the three months ended March 31, 2025 compared with the 2024 period were as follows:

			For the Three Months Ended
(Millions of Dollars)			March 31, 2025			March 31, 2024			Variation
Operating revenues			$215			$195			$20
Purchased power			86			70			16
Other operations and maintenance			75			75			—
Depreciation and amortization			21			20			1
Taxes, other than income taxes			16			16			—
Electric operating income			$17			$14			$3

O&R’s electric sales and deliveries for the three months ended March 31, 2025 compared with the 2024 period were:

			Millions of kWh Delivered															Revenues in Millions (a)
			For the Three Months Ended															For the Three Months Ended
Description			March 31, 2025			March 31, 2024			Variation			Percent Variation						March 31, 2025			March 31, 2024			Variation			Percent Variation
Residential/Religious (b)			560			500			60			12.0		%				$125			$107			$18			16.8		%
Commercial/Industrial			287			238			49			20.6						48			40			8			20.0
Retail choice customers			536			582			(46)			(7.9)						34			42			(8)			(19.0)
Public authorities			29			27			2			7.4						4			3			1			33.3
Other operating revenues (c)			—			—			—			—						4			3			1			33.3
Total			1,412			1,347			65			4.8		%	(d)			$215			$195			$20			10.3		%

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

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

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

(d)After adjusting for weather and other variations, electric delivery volumes in O&R’s service area increased 1.5 percent in the three months ended March 31, 2025 compared with the 2024 period.

Operating revenues increased $20 million in the three months ended March 31, 2025 compared with the 2024 period primarily due to higher purchased power expenses ($16 million) and higher revenues from the company's New York electric rate plan ($5 million).

Purchased power expense increased $16 million in the three months ended March 31, 2025 compared with the 2024 period due to higher purchased volumes ($8 million) and higher unit costs ($8 million).

Gas

O&R’s results of gas operations for the three months ended March 31, 2025 compared with the 2024 period were as follows:

			For the Three Months Ended
(Millions of Dollars)			March 31, 2025			March 31, 2024			Variation
Operating revenues			$141			$113			$28
Gas purchased for resale			56			32			24
Other operations and maintenance			20			21			(1)
Depreciation and amortization			10			9			1
Taxes, other than income taxes			10			9			1
Gas operating income			$45			$42			$3

O&R’s gas sales and deliveries, excluding off-system sales, for the three months ended March 31, 2025 compared with the 2024 period were:

			Thousands of Dt Delivered															Revenues in Millions (a)
			For the Three Months Ended															For the Three Months Ended
Description			March 31, 2025			March 31, 2024			Variation			Percent Variation						March 31, 2025			March 31, 2024			Variation			Percent Variation
Residential			7,145			5,974			1,171			19.6		%				$109			$85			$24			28.2		%
General			1,511			725			786			Large						19			9			10			Large
Firm transportation			2,601			2,370			231			9.7						18			17			1			5.9
Total firm sales and transportation			11,257			9,069			2,188			24.1		%	(b)			$146			$111			$35			31.5		%
Interruptible sales			1,092			747			345			46.2						2			2			—			—
Generation plants			2			2			—			—						—			—			—			—
Other			345			305			40			13.1						—			—			—			—
Other gas revenues			—			—			—			—						(7)			—			(7)			Large
Total			12,696			10,123			2,573			25.4		%				$141			$113			$28			24.8		%

(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 increased 3.8 percent in the three months ended March 31, 2025 compared with the 2024 period.

Operating revenues increased $28 million in the three months ended March 31, 2025 compared with the 2024 period primarily due to higher gas purchased for resale ($24 million) and revenues from the company's New York gas rate plan ($4 million).

Gas purchased for resale increased $24 million in the three months ended March 31, 2025 compared with the 2024 period due to higher purchased volumes ($12 million) and higher unit costs ($12 million).

Taxes, Other Than Income Taxes

Taxes, other than income taxes, remained consistent in 2025 compared with 2024 for the three months ended March 31, 2025. The principal components of taxes, other than income taxes, were:

			For the Three Months Ended March 31,
(Millions of Dollars)			2025						2024						Variation
Property taxes			$18						$18						$—
State and local taxes related to revenue receipts			4						4						—
Payroll taxes			4						3						1
Total			$26			(a)			$25			(a)			$1

(a)Including sales tax on customers’ bills, total taxes other than income taxes in 2025 and 2024 were $34 million and $33 million, respectively.

Other Income (Deductions)

Other income increased $4 million in the three months ended March 31, 2025 compared with the 2024 period primarily due to higher credits associated with components of pension and other postretirement benefits other than service cost ($3 million).

Other

Income Tax Expense

Income taxes increased $11 million in the three months ended March 31, 2025 compared with the 2024 period due to lower loss before income tax benefit ($8 million) and the absence of production tax credits related to the Broken Bow II wind project that was transferred and sold in January 2025 ($3 million).

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 2026, subject to certain conditions. Con Edison and the Utilities have not entered into any loans under the Credit Agreement and CECONY has not entered into any loans under the CECONY Credit Agreement. See Note D to the First Quarter Financial Statements.

In November 2024 and January 2025, CECONY borrowed $500 million and $200 million, respectively, at a variable rate under a 364-Day Senior Unsecured Delayed Draw Term Loan Credit Agreement entered into by the company in November 2024 (the CECONY Term Loan Credit Agreement). The term loans mature in November 2025. CECONY has the option to prepay the term loans issued under the CECONY Term Loan Credit Agreement prior to maturity.

The 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 three months ended March 31, 2025 and 2024 are summarized as follows:

			For the Three Months Ended March 31,
			CECONY						O&R						Con Edison Transmission						Other (a)(b)						Con Edison (b)
(Millions of Dollars)			2025			2024			2025			2024			2025			2024			2025			2024			2025			2024
Operating activities			$763			$522			$47			$45			$13			$(4)			$14			$10			$837			$573
Investing activities			(1,169)			(1,266)			(93)			(78)			(14)			—			45			—			(1,231)			(1,344)
Financing activities			(555)			(290)			47			45			(2)			(1)			(69)			(3)			(579)			(249)
Net change for the period			(961)			(1,034)			1			12			(3)			(5)			(10)			7			(973)			(1,020)
Balance at beginning of period			1,254			1,138			38			23			23			25			18			9			1,333			1,195
Balance at end of period (c)			$293			$104			$39			$35			$20			$20			$8			$16			$360			$175
Less: Balance held for sale (d)			—			—			—			—			—			—			—			6			—			6
Balance at end of period excluding held for sale			$293			$104			$39			$35			$20			$20			$8			$10			$360			$169

(a) Other includes the parent company, Con Edison’s tax equity investments, consolidation adjustments and Broken Bow II, the deferred project that was classified as held for sale at December 31, 2024, the sale and transfer of which was completed in January 2025. See Note Q and Note R to the First Quarter Financial Statements.

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

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

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

In general, the Utilities suspended service disconnections during the COVID-19 pandemic and have since resumed such activities in accordance with applicable law. At March 31, 2025, CECONY's and O&R's customer accounts receivables balances of $3,232 million and $133 million, respectively, included aged accounts receivables (balances outstanding in excess of 60 days) of $1,513 million and $26 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 three months ended March 31, 2025 for Con Edison were $264 million higher than in the 2024 period. The change in net cash flows for Con Edison primarily reflects:

• a decrease in revenue decoupling mechanism receivables of $104 million;

• an increase in accounts payable of $38 million;

• higher net deferred credits, noncurrent liabilities, leases and other regulatory liabilities balances of $32 million;

• an increase in accrued taxes of $25 million; and

• a decrease in unbilled revenue and net unbilled revenue deferrals of $19 million.

Net cash flows from operating activities for the three months ended March 31, 2025 for CECONY were $241 million higher than in the 2024 period. The change in net cash flows for CECONY primarily reflects:

• an increase in other current liabilities of $147 million; and

• a decrease in the revenue decoupling mechanism receivable of $99 million.

Cash Flows Used in Investing Activities

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

			For the Three Months Ended March 31,
(Millions of Dollars)			2025			2024			Variance
INVESTING ACTIVITIES
Utility capital expenditures			$(1,155)			$(1,237)			$82
Cost of removal less salvage			(107)			(107)			—
Proceeds from sale of Broken Bow II, net of cash and cash equivalents sold			45			—			45
Other investing activities			(14)			—			(14)
NET CASH FLOWS USED IN INVESTING ACTIVITIES			$(1,231)			$(1,344)			$113

Net cash flows used in investing activities for Con Edison were $113 million lower for the three months ended March 31, 2025 compared with the 2024 period. The change for Con Edison primarily reflects:

• a decrease in utility capital expenditures of $82 million; and

• the proceeds from the sale of Broken Bow II, net of cash and cash equivalents sold in 2025 of $45 million;

Offset in part by

• an increase in other investing activities of ($14 million).

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

			For the Three Months Ended March 31,
(Millions of Dollars)			2025			2024			Variance
INVESTING ACTIVITIES
Utility capital expenditures			$(1,064)			$(1,160)			$96
Cost of removal less salvage			(105)			(106)			1
NET CASH FLOWS USED IN INVESTING ACTIVITIES			$(1,169)			$(1,266)			$97

Net cash flows used in investing activities for CECONY were $97 million lower for the three months ended March 31, 2025 compared with the 2024 period. The change for CECONY primarily reflects:

• a decrease in utility capital expenditures of $96 million.

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

Cash Flows Used In Financing Activities

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

			For the Three Months Ended March 31,
(Millions of Dollars)			2025			2024			Variance
FINANCING ACTIVITIES
Net issuance (payment) of short-term debt			$(1,820)			$11			$(1,831)
Borrowing under term loan			200			—			200
Debt issuance costs			(1)			(1)			—
Common stock dividends			(282)			(274)			(8)
Issuance of common shares - public offering			1,308			—			1,308
Issuance of common shares for stock plans			16			15			1
NET CASH FLOWS USED IN FINANCING ACTIVITIES			$(579)			$(249)			$(330)

Net cash flows used in financing activities for Con Edison were $330 million higher for the three months ended March 31, 2025 compared with the 2024 period and reflect the following transactions:

• an increase in the net payment of short-term debt of $1,831 million;

Offset in part by:

• the issuance of common shares of ($1,308 million) in aggregate in the 2025 period, the proceeds from the sale of which were used to invest in its subsidiaries for funding of their capital requirements and to repay short-term debt incurred for that purpose (see Note C to the First Quarter Financial Statements); and

• an increase in the borrowing under term loan ($200 million).

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

			For the Three Months Ended March 31,
(Millions of Dollars)			2025			2024			Variance
FINANCING ACTIVITIES
Net payment of short-term debt			$(1,694)			$(46)			$(1,648)
Borrowing under term loan			200			—			200
Debt issuance costs			(2)			(1)			(1)
Capital contribution by Con Edison			1,225			25			1,200
Dividend to Con Edison			(284)			(268)			(16)
NET CASH FLOWS USED IN FINANCING ACTIVITIES			$(555)			$(290)			$(265)

Net cash flows used in financing activities for CECONY were $265 million higher for the three months ended March 31, 2025 compared with the 2024 period and reflects the following transactions:

• an increase in the net payment of short-term debt of $1,648 million;

Offset in part by

• an increase in contributed equity from Con Edison of ($1,200 million); and

• an increase in the borrowing under term loan ($200 million).

Cash flows from financing activities of the Companies also reflect commercial paper issuances and repayments. The commercial paper amounts outstanding at March 31, 2025 and 2024 and the average daily balances for the three months ended March 31, 2025 and 2024 for Con Edison and CECONY were as follows:

			2025						2024
(Millions of Dollars, except Weighted Average Yield)			Outstanding at March 31,			Daily average			Outstanding at March 31,			Daily average
Con Edison			$350			$1,362			$2,299			$2,266
CECONY			$—			$952			$1,857			$1,854
Weighted average yield			4.6		%	4.6		%	5.5		%	5.6		%

Capital Resources

For each of the Companies, the common equity ratio at March 31, 2025 and December 31, 2024 was:

			Common Equity Ratio (Percent of total capitalization)
			March 31, 2025			December 31, 2024
Con Edison			49.1			47.1
CECONY			48.0			46.0

Assets, Liabilities and Equity

The Companies' assets, liabilities, and equity at March 31, 2025 and December 31, 2024 are summarized as follows.

			CECONY						O&R						Con Edison Transmission						Other (a)						Con Edison (b)
(Millions of Dollars)			2025			2024			2025			2024			2025			2024			2025			2024			2025			2024
ASSETS
Current assets			$5,852			$6,298			$410			$385			$23			$26			$(152)			$(45)			$6,133			$6,664
Investments			684			684			22			23			434			419			(4)			—			1,136			1,126
Net plant			49,573			48,983			3,224			3,166			16			17			—			(1)			52,813			52,165
Other noncurrent assets			9,697			9,685			488			486			8			7			416			429			10,609			10,607
Total Assets			$65,806			$65,650			$4,144			$4,060			$481			$469			$260			$383			$70,691			$70,562
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities			$4,129			$5,559			$401			$467			$6			$7			$244			$400			$4,780			$6,433
Noncurrent liabilities			16,617			16,711			1,235			1,209			(60)			(65)			(317)			(339)			17,475			17,516
Long-term debt			23,411			23,409			1,242			1,242			—			—			—			—			24,653			24,651
Equity			21,649			19,971			1,266			1,142			535			527			333			322			23,783			21,962
Total Liabilities and Equity			$65,806			$65,650			$4,144			$4,060			$481			$469			$260			$383			$70,691			$70,562

(a) Other includes the parent company, Con Edison’s tax equity investments, consolidation adjustments and Broken Bow II, the deferred project that was classified as held for sale at December 31, 2024, the sale and transfer of which was completed in January 2025. See Note Q and Note R to the First Quarter Financial Statements.

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

CECONY

Current assets at March 31, 2025 were $446 million lower than at December 31, 2024. The change in current assets primarily reflects a decrease in cash and temporary cash investments ($961 million) and accrued unbilled revenue ($320 million), offset in part by an increase in prepayments ($550 million) and customer accounts receivable, net of allowance for uncollectible accounts ($285 million) (see "Aged Accounts Receivable Balances,” above).

Net plant at March 31, 2025 was $591 million higher than at December 31, 2024. The change in net plant primarily reflects an increase in electric ($634 million), gas ($133 million) and general ($80 million) plant balances and an increase in construction work in progress ($15 million), offset in part by an increase in accumulated depreciation ($269 million) and a decrease in steam ($2 million) plant balances.

Current liabilities at March 31, 2025 were $1,430 million lower than at December 31, 2024. The change in current liabilities primarily reflects a decrease in notes payable ($1,694 million), offset in part by an increase in accrued interest ($132 million) and the fair value of derivative liabilities ($126 million).

Other noncurrent liabilities at March 31, 2025 were $94 million lower than at December 31, 2024. The change in other noncurrent liabilities primarily reflects a decrease in net unbilled revenue deferrals ($255 million) and unrecognized pension and other postretirement costs ($164 million). The decrease was offset in part by an increase in the deferred income taxes and unamortized investment tax credits ($235 million), other deferred credits and noncurrent liabilities ($46 million), fair value of derivative liabilities ($37 million) and pensions and retiree benefits ($7 million). See Note B and Note E to the First Quarter Financial Statements.

Equity at March 31, 2025 was $1,678 million higher than at December 31, 2024. The change in equity primarily reflects net income for the three months ended March 31, 2025 ($745 million) and capital contributions from Con Edison ($1,225 million) in 2025, offset in part by common stock dividends to Con Edison ($284 million) in 2025 and a decrease in other comprehensive income ($8 million).

O&R

Current assets at March 31, 2025 were $25 million higher than at December 31, 2024. The change in current assets primarily reflects an increase in customer accounts receivable, net of allowance for uncollectible accounts ($24 million) (see "Aged Accounts Receivable Balances,” above).

Net plant at March 31, 2025 was $58 million higher than at December 31, 2024. The change in net plant primarily reflects an increase in electric ($32 million), gas ($24 million) and general ($5 million) plant balances and an increase in construction work in progress ($3 million), offset in part by an increase in accumulated depreciation ($6 million).

Current liabilities at March 31, 2025 were $66 million lower than at December 31, 2024. The change in current liabilities primarily reflects a decrease in notes payable ($36 million), accounts payable ($23 million) and accounts payable to affiliated companies ($6 million).

Other noncurrent liabilities at March 31, 2025 were $26 million higher than at December 31, 2024. The change in other noncurrent liabilities primarily reflects an increase in deferred income taxes and unamortized investment tax credits ($15 million) and other deferred credits and noncurrent liabilities ($8 million).

Equity at March 31, 2025 was $124 million higher than at December 31, 2024. The change in equity primarily reflects net income for the three months ended March 31, 2025 ($45 million) and capital contributions from Con Edison ($100 million) in 2025, offset in part by common stock dividends to Con Edison ($17 million) in 2025 and a decrease in other comprehensive income ($4 million).

Con Edison Transmission

Investments at March 31, 2025 were $15 million higher than at December 31, 2024. The increase in investments primarily reflects additional investment in New York Transco ($14 million).

Con Edison Transmission

The following table presents Con Edison Transmission's ownership interests in New York Transco's electric transmission projects.

			Ownership Interest			In-Service Date/Anticipated			Base Return on Common Equity (ROE) plus Incentives			Common Equity Ratio
Transmission Owner Transmission Solutions (TOTS) (a)			45.7%			2016			9.5% plus 0.50% = 10.0%			53%
New York Energy Solution (NYES) (b)			45.7%			2023/2025			9.65% plus 1% =10.65%			53%
Propel NY Energy (c)			41.7% of New York Transco's share			2030			10.3% plus 1% = 11.3%			53%

(a)TOTS is a group of three electric power bulk transmission projects ($217 million total cost) constructed on the New York bulk transmission system to increase transfer capability between upstate and downstate New York. In March 2025, the FERC set for settlement New York Transco's petition requesting an updated base ROE of 10.9 percent.

(b)The NYES project was constructed to relieve transmission congestion between upstate and downstate (estimated cost of approximately $800 million). In June 2024, construction of the Dover Station, an additional network upgrade to support the NYES project, resumed following the reissuance of its permits and is anticipated to be completed by June 2025. In March 2025, the FERC set for settlement New York Transco's petition requesting an updated base ROE of 10.9 percent.

(c)Propel NY Energy, a project that is under development jointly with the NYPA, is a 90-mile electric transmission project that is expected to increase high voltage transmission connections between Long Island and the rest of New York State. New York Transco’s share of the estimated cost of the Propel NY Energy project is $2,200 million, excluding interconnection costs and the cost of projects expected to be built by local transmission owners, including CECONY. The siting, construction and operation of the project will require approvals and permits from the appropriate governmental agencies and authorities, including the NYSPSC.

Con Edison Transmission owns a 71.2 percent interest in Honeoye, a company that operates a gas storage facility in upstate New York and in which CECONY owns the remaining interest. Con Edison Transmission and CECONY are considering strategic alternatives with respect to their investments in Honeoye.

Con Edison Transmission owns a 6.6 percent interest in MVP as of March 31, 2025. MVP is a joint venture among five partners, including Con Edison Transmission, that constructed and operates the Mountain Valley Pipeline, a 303-mile gas transmission project in West Virginia and Virginia that entered service in June 2024. Con Edison Transmission is considering strategic alternatives with respect to its investment in MVP.

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 capital 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 March 31, 2025, a 10 percent increase in interest rates applicable to its variable rate debt would result in an increase in annual interest expense of $8 million and $7 million, respectively. Under CECONY’s current electric, gas and steam rate plans, variations in actual variable rate tax-exempt debt interest expense, including costs associated with the refinancing of the variable rate tax-exempt debt, are reconciled to levels reflected in rates.

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

Commodity Price Risk

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

Con Edison estimates that, as of March 31, 2025, a 10 percent decline in market prices would result in a decline in fair value of $137 million for the derivative instruments used by the Utilities to hedge purchases of electricity and gas, of which $125 million is for CECONY and $12 million is for O&R. As of March 31, 2024, Con Edison estimated that a 10 percent decline in market prices would result in a decline in fair value of $147 million for the derivative instruments used by the Utilities to hedge purchases of electricity and gas, of which $135 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.

Investment Risk

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

The Companies’ current investment policy for pension plan assets includes investment targets of 26 to 30 percent equity securities, 42 to 60 percent debt securities and 14 to 30 percent alternatives. At March 31, 2025, the pension plan investments consisted of 26 percent equity securities, 52 percent debt securities and 22 percent alternatives.

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

Material Contingencies

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