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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 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, 2025 (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, a regulated company primarily under the oversight of the Federal Energy Regulatory Commission (FERC), develops and invests in electric transmission projects and owns interests in both electric and gas assets. During the first quarter of 2026, Con Edison Transmission completed the sale of its approximately 6.6 percent equity interest in Mountain Valley Pipeline, LLC (MVP). In April 2026, CECONY and Con Edison Transmission entered into an agreement to sell their interests in Honeoye Storage Corporation (Honeoye) for $5 million in aggregate, of which approximately $1.5 million was attributed to CECONY, before certain closing adjustments and expenses. The closing is expected to occur following approval by the NYSPSC. 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.
Aged Accounts Receivable Balances
At March 31, 2026, CECONY’s and O&R’s customer accounts receivables balances of $3,120 million and $162 million, respectively, included aged accounts receivables (balances outstanding in excess of 60 days) of $1,352 million and $28 million, respectively. At December 31, 2025, CECONY’s and O&R’s customer accounts receivables balances of $2,970 million and $120 million, respectively, included aged accounts receivables (balances outstanding in excess of 60 days) of $1,427 million and $27 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 uncollectible expenses and late payment charges (from January 1, 2026 through December 31, 2028 for electric and gas and from January 1, 2020 through October 31, 2026 for steam), pursuant to which CECONY will calculate the annual difference between (i) its actual uncollectible expenses and late payment charges and (ii) the levels of uncollectible expenses and late payment charges provided in rates. In the event the actual net expenses (uncollectible expenses plus late payment charges) are below the amounts in rates, CECONY will defer the full variance as a regulatory liability and refund to customers via surcredit. In the event the actual net expenses are above the amounts in rates, CECONY will defer the full annual variance above $10 million ($8.5 million for electric and $1.5 million for gas) in 2026; above $15 million ($12.75 million for electric and $2.25 million for gas) in 2027; and above $20 million ($17.0 million for electric and $3.0 million for gas) in 2028; as a regulatory asset for recovery via surcharge. Annual surcharge recovery is subject to a 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 future recovery in CECONY’s next base rate cases.
O&R’s rate plans for the three-year period January 2025 through December 2027 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 expenses and late payment charges, and the level set forth in rates that is above the threshold. Recovery/refunds will be made via surcharge/surcredit. 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 currently in place, the Utilities’ ability to effectively manage their customer accounts receivable balances and obtain recovery in rates for their respective carrying costs and any related write-offs could have a material impact on the Companies’ businesses. In addition, a continued slow recovery of accounts receivable balances has impacted and is expected to continue to impact the Companies’ liquidity.
The Utilities, in an effort to reduce aged accounts receivables balances, continue to execute on their integrated collections strategy, which includes, among other things, implementation of flexible payment arrangement options, enhanced targeted digital and mail communications to customers regarding collections and an increased presence of field collectors to support in-person account resolution. The Utilities have also strengthened their credit and collection efforts to better manage incoming inquiries and have instituted additional measures to manage outbound collection calls.
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. The company expects that resources will again be adequate to meet the requirements of its customers in 2026. See "Electric Reliability Needs," below. While supply margins are narrow in New York City until the Champlain Hudson Power Express transmission line enters the NYISO’s energy and capacity markets, existing resources are projected to be sufficient to cover the supply requirement. The company plans to meet its continuing obligation to supply electricity to its full-service customers through a combination of electricity purchased under contract, purchased through the NYISO’s wholesale electricity market, or generated from its electricity generating facilities.
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 New York Independent System Operator (NYISO) reliability planning process. In April 2026, the NYISO issued its 2026 Quarter 1 Short-Term Assessment of Reliability that, among other things, continued to identify reliability needs in New York City beginning in the summer of 2026 and continuing through 2030. The need is primarily driven by the deactivation notices of certain generation, in combination with forecasted increases in peak demand under expected weather conditions, aging generation and the uncertainty as to whether certain planned projects will be completed and energized within the scheduled time period. The NYISO evaluated both market-based and regulated solutions and determined that certain existing generation resources should remain in service until May 1, 2029 to maintain system reliability. Longer-term reliability is dependent on the timely completion of planned transmission and generation projects and the addition of new resources. CECONY will continue to monitor reliability assessments, regulatory developments and the progress of planned transmission and generation projects.
Energy Affordability
There has been heightened legislative activity and public policy discussions regarding energy affordability. Substantial investments are needed to support an increasingly decarbonized electric grid that the Utilities, regulators and stakeholders must balance with the need for affordable rates. While the Companies continue to monitor energy affordability concerns, they are unable to predict additional legislative, executive, or regulatory measures that may result from energy affordability concerns.
Clean Energy Goals
The success of the Companies’ efforts to meet 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 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.
Federal Regulation
In February 2026, the U.S. Supreme Court ruled that U.S. tariffs imposed under the International Emergency Economic Powers Act (IEEPA) on goods imported into the U.S. were unauthorized, but the ruling did not address the potential recovery of duties previously collected under the invalidated IEEPA tariffs. The Utilities are evaluating whether refunds of IEEPA tariffs paid through their third-party vendors are available to them.
Although tariffs have not had a significant impact on the Companies' operations or financial condition to date, the cost of materials has increased across various supply chain contract portfolios. If tariffs (other than the IEEPA tariffs) remain in place, the cost of materials is anticipated to continue to increase and also may lead to supply chain disruptions.
The Companies continue to assess tariffs and are unable to predict the impact on their operations or financial condition. In addition, the Companies continue to monitor the evolving legal and policy landscape related to tariffs and are unable to predict changes in laws, regulations, regulatory guidance, legal interpretations, policy positions or implementation actions that may result from these developments.
Federal Energy Regulatory Commission (FERC)
In March 2026, the FERC issued an order regarding CECONY’s and other parties’ longstanding dispute with PJM Interconnection LLC (PJM) regarding PJM’s cost-allocation methodology that assigned disproportionate costs from regional transmission expansion plan projects to CECONY and other New York-connected entities. The FERC directed PJM to change one element of the cost allocation methodology that would result in refunds to CECONY that would ultimately be credited to CECONY’s electric customers and initiated a proceeding to review the applicability of the methodology generally. The order is subject to rehearing and potential appeal. CECONY is unable to estimate the amount of any refund it could receive.
Cyber Regulation
In April 2026, the NYSPSC adopted cybersecurity regulations for New York utilities, including CECONY and O&R, effective June 1, 2026. The regulations require the Utilities to, among other things, implement and maintain a risk‑based cybersecurity program aligned with the National Institute of Standards and Technology (NIST) Cybersecurity Framework, including governance oversight, periodic risk assessments and audits, continuous monitoring, security controls, incident response and recovery planning. The regulations also require prompt reporting of cybersecurity incidents to the NYSDPS (including cybersecurity data breaches experienced by third-party vendors), investigations following incidents and credit monitoring to customers following certain data breaches. Compliance will be phased in over specified periods set forth in the order, with incremental costs (including capital expenditures incurred to comply with the order) subject to deferral and review in future rate proceedings. The Utilities already comply with many of the requirements prescribed in the regulations, including alignment with the NIST framework, and expect to comply with all of the requirements of the regulations within the prescribed timeframe.
Con Edison Transmission
Con Edison Transmission, through its New York Transco partnership and jointly with the New York Power Authority (NYPA), 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. See the table under "Con Edison Transmission," below. Con Edison Transmission also participates 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 April 2026, CECONY and Con Edison Transmission entered into an agreement to sell their interests in Honeoye for $5 million in aggregate, of which approximately $1.5 million was attributed to CECONY, before certain closing adjustments and expenses. The closing is expected to occur following approval from the NYSPSC.
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 16,975 MMlb of steam annually to approximately 1,485 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:
| Three Months Ended March 31, 2026 | At March 31, 2026 | |||||||||||||||||||||||||||||||
| (Millions of Dollars, except percentages) | Operating Revenues | Net Income for Common Stock | Assets | |||||||||||||||||||||||||||||
| CECONY | $4,654 | 91 | % | $733 | 79 | % | $69,576 | 93 | % | |||||||||||||||||||||||
| O&R | 441 | 9 | 52 | 6 | 4,552 | 6 | ||||||||||||||||||||||||||
| Total Utilities | $5,095 | 100 | % | $785 | 85 | % | $74,128 | 99 | % | |||||||||||||||||||||||
| Con Edison Transmission | 1 | — | 143 | 15 | 373 | 1 | ||||||||||||||||||||||||||
| Other (a) | (1) | — | (4) | — | 240 | — | ||||||||||||||||||||||||||
| Total Con Edison | $5,095 | 100 | % | $924 | 100 | % | $74,741 | 100 | % |
(a)Other includes the parent company, Con Edison’s tax equity investments and consolidation adjustments. See Note Q to the First Quarter Financial Statements.
One Big Beautiful Bill Act
On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was signed into law, containing a broad range of tax reform provisions, including extending and modifying certain key provisions of the federal Tax Cuts and Jobs Act of 2017, as enacted on December 22, 2017 (TCJA) and expanding certain incentives under the federal Inflation Reduction Act, as enacted on August 16, 2022 (IRA) while accelerating the phase-out of solar and wind credits. The Companies have assessed the potential impacts of the OBBBA and any such assessments may be impacted by future guidance to be issued by the Department of Treasury. However, based on management’s assessment, the provisions in the OBBBA are not expected to have a material impact on the Companies’ financial position, results of operations or liquidity.
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 imposes a 15 percent tax on modified GAAP net income. Pursuant to the IRA, corporations are entitled to a tax credit (minimum tax credit) to the extent the CAMT liability exceeds the regular tax liability. This amount can be carried forward indefinitely and used in future years when regular tax liability exceeds the CAMT liability.
Beginning in 2024, based on the existing statute, the Companies are subject to and report the CAMT in their Consolidated Income Statements, Consolidated Statements of Cash Flows and the Consolidated Balance Sheets.
At March 31, 2026, Con Edison recorded a CAMT liability of $53 million ($45 million of which is for CECONY) before the application of general business credits, with an offsetting deferred tax asset representing the minimum tax credit carryforward. The deferred tax asset related to the minimum tax credit carryforward will be realized to the extent the Companies’ consolidated deferred tax liabilities exceed the minimum tax credit carryforward. The Companies’ deferred tax liabilities are expected to exceed the minimum tax credit carryforward for the foreseeable future and thus no valuation allowance is required. The Companies are continuing to assess the impacts of the IRA on their financial statements and will update estimates based on future guidance to be issued by the Department of the Treasury.
On February 18, 2026, the IRS and the Department of Treasury issued Notice 2026-7, that provides additional interim guidance regarding the application of the CAMT and allows the Companies to deduct certain repair expenditures as a reduction to the Companies’ modified GAAP net income. This interim guidance is retroactive to the beginning of the IRA provisions in calculating the Companies’ CAMT liability. In the three months ended March 31, 2026, Con Edison reduced its CAMT carryforward by $205 million ($213 million of which is for CECONY) and increased its general business tax credit carryforward by approximately $154 million as a result of adopting the interim guidance for the 2024 and 2025 tax years. This guidance will also reduce the Companies’ CAMT liability going forward.
New York Legislation
In May 2025, New York adopted the 2025-2026 budget bill into law that included increases in payroll tax rates from 0.6 percent to 0.895 percent for CECONY and from 0.34 percent to 0.635 percent for O&R, effective July 1, 2025.
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 2026.
Results of Operations
Net income for common stock and earnings per share for the three months ended March 31, 2026 and 2025 were as follows:
| For the Three Months Ended March 31, | ||||||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||||||||
| (Millions of Dollars, except per share amounts) | Net Income for Common Stock | Earnings per Share | ||||||||||||||||||||||||
| CECONY | $733 | $745 | $2.02 | $2.13 | ||||||||||||||||||||||
| O&R | 52 | 45 | 0.14 | 0.13 | ||||||||||||||||||||||
| Con Edison Transmission (a) | 143 | 10 | 0.40 | 0.03 | ||||||||||||||||||||||
| Other (b) | (4) | (9) | (0.01) | (0.03) | ||||||||||||||||||||||
| Con Edison (c) | $924 | $791 | $2.55 | $2.26 |
(a)Net income for common stock and earnings per share for the three months ended March 31, 2026 includes $134 million or $0.37 a share (after-tax) for the gain on the sale of Con Edison's equity interest in MVP. Net income for common stock and earnings per share for the three months ended March 31, 2026 includes $2 million or $0.01 a share (after-tax) for accretion of the basis difference of Con Edison's equity interest in MVP. Net income for common stock and earnings per share for the three months ended March 31, 2026 includes $(2) million or $(0.01) a share (after-tax) for the transaction costs associated with the strategic alternatives review of Con Edison's equity interests in MVP and Honeoye. 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 interest in MVP. See “Investment in Mountain Valley Pipeline, LLC (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, with the sale and transfer completed in January 2025. Net income for common stock for the three months ended March 31, 2025 includes $(3) million or $(0.01) a share (after-tax) on the effects of HLBV accounting for tax equity investments in certain renewable electric projects. See Note Q to the First Quarter Financial Statements.
(c) Earnings per share on a diluted basis were $2.54 a share and $2.25 a share for the three months ended March 31, 2026 and 2025.
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, 2026 as compared with the 2025 period.
| Variation for the Three Months Ended March 31, 2026 vs. 2025 | |||||||||||
| Net Income for Common Stock (Net of Tax) (Millions of Dollars) | Earnings per Share | ||||||||||
| CECONY (a) | |||||||||||
| Higher electric rate base | $15 | $0.04 | |||||||||
| Higher gas rate base | 14 | 0.04 | |||||||||
| Higher income from allowance for funds used during construction | 2 | 0.01 | |||||||||
| Higher electric, gas and steam operations and maintenance expense | (28) | (0.08) | |||||||||
| Higher interest expense on long-term debt | (9) | (0.03) | |||||||||
| Higher corporate expenses | (5) | (0.01) | |||||||||
| Dilutive effect of issuance of common shares | — | (0.08) | |||||||||
| Other | (1) | — | |||||||||
| Total CECONY | (12) | (0.11) | |||||||||
| O&R (a) | |||||||||||
| Electric base rate increase | 5 | 0.01 | |||||||||
| Gas base rate increase | 3 | 0.01 | |||||||||
| Higher interest expense on long-term debt | (3) | (0.01) | |||||||||
| Other | 2 | — | |||||||||
| Total O&R | 7 | 0.01 | |||||||||
| Con Edison Transmission | |||||||||||
| Gain on the sale of Con Edison's equity interest in MVP | 134 | 0.37 | |||||||||
| Transaction costs associated with the strategic alternatives review of Con Edison's equity investments in MVP and Honeoye | (2) | (0.01) | |||||||||
| Other | 1 | 0.01 | |||||||||
| Total Con Edison Transmission | 133 | 0.37 | |||||||||
| Other, including parent company expenses (b) | |||||||||||
| HLBV effects | 3 | 0.01 | |||||||||
| Other | 2 | 0.01 | |||||||||
| Total Other, including parent company expenses | 5 | 0.02 | |||||||||
| Total Reported (GAAP basis) | $133 | $0.29 | |||||||||
| (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, with the sale and transfer completed in January 2025. See Note Q to the First Quarter Financial Statements. |
The Companies’ other operations and maintenance expenses for the three months ended March 31, 2026 and 2025 were as follows:
| For the Three Months Ended March 31, | ||||||||||||||
| (Millions of Dollars) | 2026 | 2025 | ||||||||||||
| CECONY | ||||||||||||||
| Operations | $523 | $485 | ||||||||||||
| Pensions and other postretirement benefits | (19) | 6 | ||||||||||||
| Health care and other benefits | 61 | 50 | ||||||||||||
| Regulatory fees and assessments (a) | 90 | 124 | ||||||||||||
| Other | 188 | 189 | ||||||||||||
| Total CECONY | $843 | $854 | ||||||||||||
| O&R | 93 | 95 | ||||||||||||
| Con Edison Transmission | 3 | 2 | ||||||||||||
| Other (b) | 1 | 1 | ||||||||||||
| Total other operations and maintenance expenses | $940 | $952 |
(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, with the sale and transfer completed in January 2025. See Note Q to the First Quarter Financial Statements.
A discussion of the results of operations by principal business segment for the three months ended March 31, 2026 and 2025 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, 2026 and 2025 were as follows:
| CECONY | O&R | Con Edison Transmission | Other (a) | Con Edison (b) | ||||||||||||||||||||||||||||
| (Millions of Dollars) | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||
| Operating revenues | $4,654 | $4,441 | $441 | $356 | $1 | $1 | $(1) | $— | $5,095 | $4,798 | ||||||||||||||||||||||
| Purchased power | 610 | 635 | 146 | 86 | — | — | — | — | 756 | 721 | ||||||||||||||||||||||
| Fuel | 189 | 127 | — | — | — | — | — | — | 189 | 127 | ||||||||||||||||||||||
| Gas purchased for resale | 361 | 305 | 66 | 56 | — | — | (1) | 1 | 426 | 362 | ||||||||||||||||||||||
| Other operations and maintenance | 843 | 854 | 93 | 95 | 3 | 2 | 1 | 1 | 940 | 952 | ||||||||||||||||||||||
| Depreciation and amortization | 539 | 533 | 33 | 31 | — | — | — | — | 572 | 564 | ||||||||||||||||||||||
| Taxes, other than income taxes | 1,006 | 920 | 27 | 26 | — | — | 2 | 1 | 1,035 | 947 | ||||||||||||||||||||||
| Operating income (loss) | 1,106 | 1,067 | 76 | 62 | (2) | (1) | (3) | (3) | 1,177 | 1,125 | ||||||||||||||||||||||
| Gain on sale of interest in Mountain Valley Pipeline, LLC | — | — | — | — | 189 | — | — | — | 189 | — | ||||||||||||||||||||||
| Other income (deductions) | 144 | 198 | 10 | 12 | 15 | 16 | — | (5) | 169 | 221 | ||||||||||||||||||||||
| Net interest expense | 286 | 293 | 18 | 16 | — | — | 4 | 4 | 308 | 313 | ||||||||||||||||||||||
| Income (loss) before income tax expense (benefit) | 964 | 972 | 68 | 58 | 202 | 15 | (7) | (12) | 1,227 | 1,033 | ||||||||||||||||||||||
| Income tax expense (benefit) | 231 | 227 | 16 | 13 | 59 | 5 | (3) | (3) | 303 | 242 | ||||||||||||||||||||||
| Net income (loss) for common stock | $733 | $745 | $52 | $45 | $143 | $10 | $(4) | $(9) | $924 | $791 | ||||||||||||||||||||||
(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, with the sale and transfer completed in January 2025. See Note Q to the First Quarter Financial Statements.
(b)Represents the consolidated results of operations of Con Edison and its businesses.
CECONY
| Three Months Ended March 31, 2026 | Three Months Ended March 31, 2025 | ||||||||||||||||||||||||||||
| (Millions of Dollars) | Electric | Gas | Steam | 2026 Total | Electric | Gas | Steam | 2025 Total | 2026-2025 Variation | ||||||||||||||||||||
| Operating revenues | $2,758 | $1,464 | $432 | $4,654 | $2,686 | $1,401 | $354 | $4,441 | $213 | ||||||||||||||||||||
| Purchased power | 591 | — | 19 | 610 | 621 | — | 14 | 635 | (25) | ||||||||||||||||||||
| Fuel | 95 | — | 94 | 189 | 66 | — | 61 | 127 | 62 | ||||||||||||||||||||
| Gas purchased for resale | — | 361 | — | 361 | — | 305 | — | 305 | 56 | ||||||||||||||||||||
| Other operations and maintenance | 649 | 137 | 57 | 843 | 659 | 139 | 56 | 854 | (11) | ||||||||||||||||||||
| Depreciation and amortization | 387 | 122 | 30 | 539 | 389 | 118 | 26 | 533 | 6 | ||||||||||||||||||||
| Taxes, other than income taxes | 702 | 223 | 81 | 1,006 | 662 | 199 | 59 | 920 | 86 | ||||||||||||||||||||
| Operating income | $334 | $621 | $151 | $1,106 | $289 | $640 | $138 | $1,067 | $39 |
Electric
CECONY’s results of electric operations for the three months ended March 31, 2026 compared with the 2025 period were as follows:
| For the Three Months Ended | |||||||||||
| (Millions of Dollars) | March 31, 2026 | March 31, 2025 | Variation | ||||||||
| Operating revenues | $2,758 | $2,686 | $72 | ||||||||
| Purchased power | 591 | 621 | (30) | ||||||||
| Fuel | 95 | 66 | 29 | ||||||||
| Other operations and maintenance | 649 | 659 | (10) | ||||||||
| Depreciation and amortization | 387 | 389 | (2) | ||||||||
| Taxes, other than income taxes | 702 | 662 | 40 | ||||||||
| Electric operating income | $334 | $289 | $45 |
CECONY’s electric sales and deliveries for the three months ended March 31, 2026 compared with the 2025 period were:
| Millions of kWh Delivered | Revenues in Millions (a) | ||||||||||||||||||||||||||||
| For the Three Months Ended | For the Three Months Ended | ||||||||||||||||||||||||||||
| Description | March 31, 2026 | March 31, 2025 | Variation | Percent Variation | March 31, 2026 | March 31, 2025 | Variation | Percent Variation | |||||||||||||||||||||
| Residential/Religious (b) | 3,416 | 3,037 | 379 | 12.5 | % | $1,244 | $1,131 | $113 | 10.0 | % | |||||||||||||||||||
| Commercial/Industrial | 2,974 | 2,912 | 62 | 2.1 | 878 | 867 | 11 | 1.3 | |||||||||||||||||||||
| Retail choice customers | 4,935 | 5,183 | (248) | (4.8) | 519 | 603 | (84) | (13.9) | |||||||||||||||||||||
| NYPA, Municipal Agency and other sales | 2,422 | 2,443 | (21) | (0.9) | 202 | 197 | 5 | 2.5 | |||||||||||||||||||||
| Other operating revenues (c) | — | — | — | — | (85) | (112) | 27 | (24.1) | |||||||||||||||||||||
| Total | 13,747 | 13,575 | 172 | 1.3 | % | (d) | $2,758 | $2,686 | $72 | 2.7 | % |
(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 decreased 0.1 percent in the three months ended March 31, 2026 compared with the 2025 period.
Operating revenues increased $72 million in the three months ended March 31, 2026 compared with the 2025 period primarily due to higher unbilled revenue ($30 million), an increase in other revenue ($20 million) and an increase in revenues from the electric rate plan ($14 million).
Purchased power expenses decreased $30 million in the three months ended March 31, 2026 compared with the 2025 period due to lower unit costs ($87 million), offset in part by higher purchased volumes ($57 million).
Fuel costs increased $29 million in the three months ended March 31, 2026 compared with the 2025 period due to higher unit costs ($15 million) and higher purchased volumes from the company's electric generating facilities ($14 million).
Other operations and maintenance expenses decreased $10 million in the three months ended March 31, 2026 compared with the 2025 period primarily due to lower costs for pension and other postretirement benefits, reflecting reconciliation to the rate plan level ($17 million) and lower total surcredits for assessments and fees that are collected in revenues from customers ($8 million), offset in part by higher electric operations maintenance activities ($14 million).
Taxes, other than income taxes increased $40 million in the three months ended March 31, 2026 compared with the 2025 period primarily due to higher property taxes ($44 million) and higher state and local revenue taxes ($6 million), offset in part by higher deferral of under-collected property taxes ($9 million).
Gas
CECONY’s results of gas operations for the three months ended March 31, 2026 compared with the 2025 period were as follows:
| For the Three Months Ended | |||||||||||
| (Millions of Dollars) | March 31, 2026 | March 31, 2025 | Variation | ||||||||
| Operating revenues | $1,464 | $1,401 | $63 | ||||||||
| Gas purchased for resale | 361 | 305 | 56 | ||||||||
| Other operations and maintenance | 137 | 139 | (2) | ||||||||
| Depreciation and amortization | 122 | 118 | 4 | ||||||||
| Taxes, other than income taxes | 223 | 199 | 24 | ||||||||
| Gas operating income | $621 | $640 | $(19) |
CECONY’s gas sales and deliveries, excluding off-system sales, for the three months ended March 31, 2026 compared with the 2025 period were:
| Thousands of Dt Delivered | Revenues in Millions (a) | ||||||||||||||||||||||||||||
| For the Three Months Ended | For the Three Months Ended | ||||||||||||||||||||||||||||
| Description | March 31, 2026 | March 31, 2025 | Variation | Percent Variation | March 31, 2026 | March 31, 2025 | Variation | Percent Variation | |||||||||||||||||||||
| Residential | 27,369 | 26,261 | 1,108 | 4.2 | % | $603 | $592 | $11 | 1.9 | % | |||||||||||||||||||
| General | 17,302 | 15,881 | 1,421 | 8.9 | 368 | 336 | 32 | 9.5 | |||||||||||||||||||||
| Firm transportation | 35,553 | 35,084 | 469 | 1.3 | 410 | 430 | (20) | (4.7) | |||||||||||||||||||||
| Total firm sales and transportation | 80,224 | 77,226 | 2,998 | 3.9 | % | (b) | $1,381 | $1,358 | $23 | 1.7 | % | ||||||||||||||||||
| Interruptible sales | 1,066 | 1,110 | (44) | (4.0) | 19 | 12 | 7 | 58.3 | |||||||||||||||||||||
| NYPA | 7,682 | 9,900 | (2,218) | (22.4) | 1 | 1 | — | — | |||||||||||||||||||||
| Generation plants | 12,666 | 12,697 | (31) | (0.2) | 5 | 4 | 1 | 25.0 | |||||||||||||||||||||
| Other | 5,529 | 6,247 | (718) | (11.5) | 14 | 15 | (1) | (6.7) | |||||||||||||||||||||
| Other operating revenues (c) | — | — | — | — | 44 | 11 | 33 | Large | |||||||||||||||||||||
| Total | 107,167 | 107,180 | (13) | — | % | $1,464 | $1,401 | $63 | 4.5 | % |
(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 (3.2) percent in the three months ended March 31, 2026 compared with the 2025 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 $63 million in the three months ended March 31, 2026 compared with the 2025 period primarily due to higher gas purchased for resale ($56 million).
Gas purchased for resale increased $56 million in the three months ended March 31, 2026 compared with the 2025 period due to higher unit costs ($80 million), offset in part by lower purchased volumes ($24 million).
Depreciation and amortization expenses increased $4 million in the three months ended March 31, 2026 compared with the 2025 period primarily due to higher gas utility plant balances.
Taxes, other than income taxes increased $24 million in the three months ended March 31, 2026 compared with the 2025 period primarily due to higher deferral of over-collected property taxes ($9 million), higher property taxes ($6 million), higher state and local revenue taxes ($5 million) and higher payroll taxes ($2 million).
Steam
CECONY’s results of steam operations for the three months ended March 31, 2026 compared with the 2025 period were as follows:
| For the Three Months Ended | |||||||||||
| (Millions of Dollars) | March 31, 2026 | March 31, 2025 | Variation | ||||||||
| Operating revenues | $432 | $354 | $78 | ||||||||
| Purchased power | 19 | 14 | 5 | ||||||||
| Fuel | 94 | 61 | 33 | ||||||||
| Other operations and maintenance | 57 | 56 | 1 | ||||||||
| Depreciation and amortization | 30 | 26 | 4 | ||||||||
| Taxes, other than income taxes | 81 | 59 | 22 | ||||||||
| Steam operating income | $151 | $138 | $13 |
CECONY’s steam sales and deliveries for the three months ended March 31, 2026 compared with the 2025 period were:
| Millions of Pounds Delivered | Revenues in Millions | ||||||||||||||||||||||||||||
| For the Three Months Ended | For the Three Months Ended | ||||||||||||||||||||||||||||
| Description | March 31, 2026 | March 31, 2025 | Variation | Percent Variation | March 31, 2026 | March 31, 2025 | Variation | Percent Variation | |||||||||||||||||||||
| General | 367 | 308 | 59 | 19.2 | % | $27 | $20 | $7 | 35.0 | % | |||||||||||||||||||
| Apartment house | 2,395 | 2,355 | 40 | 1.7 | 115 | 95 | 20 | 21.1 | |||||||||||||||||||||
| Annual power | 5,176 | 5,007 | 169 | 3.4 | 290 | 240 | 50 | 20.8 | |||||||||||||||||||||
| Other operating revenues (a) | — | — | — | — | — | (1) | 1 | Large | |||||||||||||||||||||
| Total | 7,938 | 7,670 | 268 | 3.5 | % | (b) | $432 | $354 | $78 | 22.0 | % |
(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 in the company's service area decreased (6.1) percent in the three months ended March 31, 2026 compared with the 2025 period.
Operating revenues increased $78 million in the three months ended March 31, 2026 compared with the 2025 period primarily due to higher fuel costs ($33 million), an increase in steam revenues under the company's steam rate plan ($26 million) and higher purchased power expenses ($5 million).
Purchased power expenses increased $5 million in the three months ended March 31, 2026 compared with the 2025 period due to higher unit costs ($5 million).
Fuel costs increased $33 million in the three months ended March 31, 2026 compared with the 2025 period due to higher unit costs ($29 million) and higher purchased volumes from the company's steam generating facilities ($4 million).
Depreciation and amortization expenses increased $4 million in the three months ended March 31, 2026 compared with the 2025 period primarily due to higher steam utility plant balances.
Taxes, other than income taxes increased $22 million in the three months ended March 31, 2026 compared with the 2025 period primarily due to a higher deferral of over-collected property taxes ($23 million).
Taxes, Other Than Income Taxes
At $1,006 million, taxes other than income taxes remain one of CECONY’s largest operating expenses for the three months ended March 31, 2026. The principal components of, and variations in, taxes other than income taxes were:
| For the Three Months Ended March 31, | |||||||||||||||||
| (Millions of Dollars) | 2026 | 2025 | Variation | ||||||||||||||
| Property taxes | $775 | $726 | $49 | ||||||||||||||
| State and local taxes related to revenue receipts | 141 | 128 | 13 | ||||||||||||||
| Payroll taxes | 36 | 35 | 1 | ||||||||||||||
| Other taxes (b) | 54 | 31 | 23 | ||||||||||||||
| Total | $1,006 | (a) | $920 | (a) | $86 |
(a)Including sales tax on customers’ bills, total taxes other than income taxes in 2026 and 2025 were $1,253 million and $1,157 million, respectively.
(b)Including the deferral of over-collected property taxes in 2026 and 2025 were $53 million and $30 million, respectively.
Other Income (Deductions)
Other income decreased $54 million in the three months ended March 31, 2026 compared with the 2025 period primarily due to lower credits associated with components of pension and other postretirement benefits other than service cost ($60 million), offset in part by an increase in AFUDC ($2 million).
Net Interest Expense
Net interest expense decreased $7 million in the three months ended March 31, 2026 compared with the 2025 period primarily due to lower other interest expense ($20 million), offset in part by higher interest on long-term debt resulting from increased debt balances ($12 million).
Income Tax Expense
Income taxes increased $4 million in the three months ended March 31, 2026 compared with the 2025 period primarily due to lower benefit from the amortization of MTA tax surcredit ($3 million) and lower write-offs of uncollectible accounts ($7 million), offset in part by higher amortization of excess deferred federal income taxes ($4 million) and lower income before income tax expense ($2 million).
O&R
| For the Three Months Ended March 31, 2026 | For the Three Months Ended March 31, 2025 | ||||||||||||||||||||||
| (Millions of Dollars) | Electric | Gas | 2026 Total | Electric | Gas | 2025 Total | 2026-2025 Variation | ||||||||||||||||
| Operating revenues | $282 | $159 | $441 | $215 | $141 | $356 | $85 | ||||||||||||||||
| Purchased power | 146 | — | 146 | 86 | — | 86 | 60 | ||||||||||||||||
| Gas purchased for resale | — | 66 | 66 | — | 56 | 56 | 10 | ||||||||||||||||
| Other operations and maintenance | 71 | 22 | 93 | 75 | 20 | 95 | (2) | ||||||||||||||||
| Depreciation and amortization | 22 | 11 | 33 | 21 | 10 | 31 | 2 | ||||||||||||||||
| Taxes, other than income taxes | 17 | 10 | 27 | 16 | 10 | 26 | 1 | ||||||||||||||||
| Operating income | $26 | $50 | $76 | $17 | $45 | $62 | $14 |
Electric
O&R’s results of electric operations for the three months ended March 31, 2026 compared with the 2025 period were as follows:
| For the Three Months Ended | |||||||||||
| (Millions of Dollars) | March 31, 2026 | March 31, 2025 | Variation | ||||||||
| Operating revenues | $282 | $215 | $67 | ||||||||
| Purchased power | 146 | 86 | 60 | ||||||||
| Other operations and maintenance | 71 | 75 | (4) | ||||||||
| Depreciation and amortization | 22 | 21 | 1 | ||||||||
| Taxes, other than income taxes | 17 | 16 | 1 | ||||||||
| Electric operating income | $26 | $17 | $9 |
O&R’s electric sales and deliveries for the three months ended March 31, 2026 compared with the 2025 period were:
| Millions of kWh Delivered | Revenues in Millions (a) | ||||||||||||||||||||||||||||
| For the Three Months Ended | For the Three Months Ended | ||||||||||||||||||||||||||||
| Description | March 31, 2026 | March 31, 2025 | Variation | Percent Variation | March 31, 2026 | March 31, 2025 | Variation | Percent Variation | |||||||||||||||||||||
| Residential/Religious (b) | 619 | 560 | 59 | 10.5 | % | $184 | $125 | $59 | 47.2 | % | |||||||||||||||||||
| Commercial/Industrial | 311 | 287 | 24 | 8.4 | 67 | 48 | 19 | 39.6 | |||||||||||||||||||||
| Retail choice customers | 585 | 536 | 49 | 9.1 | 33 | 34 | (1) | (2.9) | |||||||||||||||||||||
| Public authorities | 31 | 29 | 2 | 6.9 | 4 | 4 | — | — | |||||||||||||||||||||
| Other operating revenues (c) | — | — | — | — | (6) | 4 | (10) | Large | |||||||||||||||||||||
| Total | 1,546 | 1,412 | 134 | 9.5 | % | (d) | $282 | $215 | $67 | 31.2 | % |
(a)O&R’s New York electric delivery revenues are subject to a revenue decoupling mechanism, as a result of which delivery revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved. The majority of O&R’s electric distribution revenues in New Jersey are subject to a conservation incentive program, as a result of which distribution revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved. O&R’s electric transmission revenues in New Jersey are not subject to a conservation incentive program, and as a result, changes in such volumes do impact revenues.
(b)“Residential/Religious” generally includes single-family dwellings, individual apartments in multi-family dwellings, religious organizations and certain other not-for-profit organizations.
(c)Other electric operating revenues generally reflect changes in regulatory assets and liabilities in accordance with O&R’s electric rate plan.
(d)After adjusting for weather and other variations, electric delivery volumes in O&R’s service area increased 1.9 percent in the three months ended March 31, 2026 compared with the 2025 period.
Operating revenues increased $67 million in the three months ended March 31, 2026 compared with the 2025 period primarily due to higher purchased power expenses ($60 million) and higher revenues from the company's New York electric rate plan ($7 million).
Purchased power expense increased $60 million in the three months ended March 31, 2026 compared with the 2025 period due to higher unit costs ($41 million) and higher purchased volumes ($19 million).
Other operations and maintenance decreased $(4) million in the three months ended March 31, 2026 compared with the 2025 period primarily due to lower regulatory system benefit charges ($4 million).
Gas
O&R’s results of gas operations for the three months ended March 31, 2026 compared with the 2025 period were as follows:
| For the Three Months Ended | |||||||||||
| (Millions of Dollars) | March 31, 2026 | March 31, 2025 | Variation | ||||||||
| Operating revenues | $159 | $141 | $18 | ||||||||
| Gas purchased for resale | 66 | 56 | 10 | ||||||||
| Other operations and maintenance | 22 | 20 | 2 | ||||||||
| Depreciation and amortization | 11 | 10 | 1 | ||||||||
| Taxes, other than income taxes | 10 | 10 | — | ||||||||
| Gas operating income | $50 | $45 | $5 |
O&R’s gas sales and deliveries, excluding off-system sales, for the three months ended March 31, 2026 compared with the 2025 period were:
| Thousands of Dt Delivered | Revenues in Millions (a) | ||||||||||||||||||||||||||||
| For the Three Months Ended | For the Three Months Ended | ||||||||||||||||||||||||||||
| Description | March 31, 2026 | March 31, 2025 | Variation | Percent Variation | March 31, 2026 | March 31, 2025 | Variation | Percent Variation | |||||||||||||||||||||
| Residential | 7,687 | 7,145 | 542 | 7.6 | % | $137 | $109 | $28 | 25.7 | % | |||||||||||||||||||
| General | 1,635 | 1,511 | 124 | 8.2 | 23 | 19 | 4 | 21.1 | |||||||||||||||||||||
| Firm transportation | 2,621 | 2,601 | 20 | 0.8 | 22 | 18 | 4 | 22.2 | |||||||||||||||||||||
| Total firm sales and transportation | 11,943 | 11,257 | 686 | 6.1 | % | (b) | $182 | $146 | $36 | 24.7 | % | ||||||||||||||||||
| Interruptible sales | 951 | 1,092 | (141) | (12.9) | 2 | 2 | — | — | |||||||||||||||||||||
| Generation plants | — | 2 | (2) | Large | — | — | — | — | |||||||||||||||||||||
| Other | 350 | 345 | 5 | 1.4 | 1 | — | 1 | Large | |||||||||||||||||||||
| Other gas revenues | — | — | — | — | (26) | (7) | (19) | Large | |||||||||||||||||||||
| Total | 13,244 | 12,696 | 548 | 4.3 | % | $159 | $141 | $18 | 12.8 | % |
(a)Revenues from New York 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 weather and other variations, firm sales and transportation volumes in O&R's service area decreased (0.3) percent in the three months ended March 31, 2026 compared with the 2025 period.
Operati**ng revenues increased $18 million in the three months ended March 31, 2026 compared with the 2025 period primarily due to higher gas purchased for resale ($10 million) and higher revenues from the company's New York gas rate plan ($8 million).
Gas purchased for resale increased $10 million in the three months ended March 31, 2026 compared with the 2025 period due to higher unit costs ($11 million), offset in part by lower purchased volumes ($1 million).
Taxes, Other Than Income Taxes
Taxes, other than income taxes, increased $1 million in 2026 compared with 2025 for the three months ended March 31, 2026. The principal components of taxes, other than income taxes, were:
| For the Three Months Ended March 31, | |||||||||||||||||
| (Millions of Dollars) | 2026 | 2025 | Variation | ||||||||||||||
| Property taxes | $18 | $18 | $— | ||||||||||||||
| State and local taxes related to revenue receipts | 5 | 4 | 1 | ||||||||||||||
| Payroll taxes | 4 | 4 | — | ||||||||||||||
| Total | $27 | (a) | $26 | (a) | $1 |
(a)Including sales tax on customers’ bills, total taxes other than income taxes in 2026 and 2025 were $39 million and $34 million, respectively.
Income Tax Expense
Income taxes increased $3 million in the three months ended March 31, 2026 compared with the 2025 period primarily due to higher income before income tax expense.
Con Edison Transmission
Income Tax Expense
Income taxes increased $54 million in the three months ended March 31, 2026 compared with the 2025 period primarily due to higher income before income tax expense from the sale of its equity interest in MVP.
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 $3,500 million revolving credit agreement (the Credit Agreement) in place under which banks are committed to provide loans on a revolving credit basis until March 2031, which may be extended for two additional one-year terms, 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.
The FERC has authorized CECONY through April 30, 2028 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 $5,000 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, 2026 and 2025 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) | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||
| Operating activities | $128 | $763 | $53 | $47 | $(5) | $13 | $(2) | $14 | $174 | $837 | ||||||||||||||||||||||
| Investing activities | (1,169) | (1,169) | (111) | (93) | 342 | (14) | 2 | 45 | (936) | (1,231) | ||||||||||||||||||||||
| Financing activities | (476) | (555) | 87 | 47 | (331) | (2) | (1) | (69) | (721) | (579) | ||||||||||||||||||||||
| Net change for the period | (1,517) | (961) | 29 | 1 | 6 | (3) | (1) | (10) | (1,483) | (973) | ||||||||||||||||||||||
| Balance at beginning of period | 1,581 | 1,254 | 24 | 38 | 19 | 23 | 6 | 18 | 1,630 | 1,333 | ||||||||||||||||||||||
| Balance at end of period (c) | $64 | $293 | $53 | $39 | $25 | $20 | $5 | $8 | $147 | $360 | ||||||||||||||||||||||
(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, with the sale and transfer completed in January 2025. See Note Q 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.
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. Pursuant to their rate plans, the Utilities 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, 2026, CECONY's and O&R's customer accounts receivables balances of $3,120 million and $162 million, respectively, included aged accounts receivables (balances outstanding in excess of 60 days) of $1,352 million and $28 million, respectively. A continued slow recovery of 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, 2026 for Con Edison were $663 million lower than in the 2025 period. The change in net cash flows for Con Edison primarily reflects:
-
lower net deferred credits, noncurrent liabilities and other regulatory liabilities of $350 million primarily due to higher recoverable energy costs of $348 million
-
an increase in prepayments of $137 million
-
a decrease in accounts payable of $80 million; and
-
an increase in unbilled revenue and net unbilled revenue deferrals of $38 million.
Net cash flows from operating activities for the three months ended March 31, 2026 for CECONY were $635 million lower than in the 2025 period. The change in net cash flows for CECONY primarily reflects:
-
lower net deferred credits, noncurrent liabilities and other regulatory liabilities of $363 million primarily due to higher recoverable energy costs $359 million; and
-
higher accounts receivable from (to) affiliated companies of $194 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) | 2026 | 2025 | Variance | ||||||||
| INVESTING ACTIVITIES | |||||||||||
| Utility capital expenditures | $(1,172) | $(1,155) | $(17) | ||||||||
| Cost of removal less salvage | (106) | (107) | 1 | ||||||||
| Non-utility capital expenditures | (1) | — | (1) | ||||||||
| Proceeds from sale of interest in Mountain Valley Pipeline, LLC | 358 | — | 358 | ||||||||
| Proceeds from sale of Broken Bow II, net of cash and cash equivalents sold | — | 45 | (45) | ||||||||
| Other investing activities | (15) | (14) | (1) | ||||||||
| NET CASH FLOWS USED IN INVESTING ACTIVITIES | $(936) | $(1,231) | $295 |
Net cash flows used in investing activities for Con Edison were $295 million lower for the three months ended March 31, 2026 compared with the 2025 period. The change for Con Edison primarily reflects:
- the proceeds from the sale of Con Edison Transmission's equity interest in MVP of $358 million.
Offset in part by
-
prior year proceeds from the sale of Broken Bow II of ($45 million); and
-
higher utility capital expenditures of ($17 million).
The following table summarizes key components of CECONY’s investing cash flows.
| For the Three Months Ended March 31, | |||||||||||
| (Millions of Dollars) | 2026 | 2025 | Variance | ||||||||
| INVESTING ACTIVITIES | |||||||||||
| Utility capital expenditures | $(1,067) | $(1,064) | $(3) | ||||||||
| Cost of removal less salvage | (102) | (105) | 3 | ||||||||
| NET CASH FLOWS USED IN INVESTING ACTIVITIES | $(1,169) | $(1,169) | $— |
Net cash flows used in investing activities for CECONY remained constant for the three months ended March 31, 2026 compared with the 2025 period. The change for CECONY primarily reflects:
- an increase in utility capital expenditures of $3 million.
Offset by
- a decrease in cost of removal less salvage of ($3 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) | 2026 | 2025 | Variance | ||||||||
| FINANCING ACTIVITIES | |||||||||||
| Net payment of short-term debt (Maturities 90 days or less) | $(406) | $(1,820) | $1,414 | ||||||||
| Payment of short-term debt (Maturities greater than 90 days) | (300) | — | (300) | ||||||||
| Borrowing under term loan | — | 200 | (200) | ||||||||
| Repayment of term loan | (500) | — | (500) | ||||||||
| Debt issuance costs | (1) | (1) | — | ||||||||
| Common stock dividends | (308) | (282) | (26) | ||||||||
| Issuance of common shares - public offering | 776 | 1,308 | (532) | ||||||||
| Issuance of common shares for stock plans | 18 | $16 | 2 | ||||||||
| NET CASH FLOWS USED IN FINANCING ACTIVITIES | $(721) | $(579) | $(142) |
Net cash flows used in financing activities for Con Edison were $142 million higher for the three months ended March 31, 2026 compared with the 2025 period and reflect the following transactions:
-
a decrease in the issuance of common shares - public offering of $532 million;
-
higher repayment of term loan of $500 million;
-
an increase in the payment of short-term debt (maturities greater than 90 days) of $300 million; and
-
a decrease in borrowing under term loan of $200 million.
Offset by
- a decrease in the net payment of short-term debt (maturities 90 days or less) of ($1,414 million).
The following table summarizes key components of CECONY’s financing cash flows.
| For the Three Months Ended March 31, | |||||||||||
| (Millions of Dollars) | 2026 | 2025 | Variance | ||||||||
| FINANCING ACTIVITIES | |||||||||||
| Net payment of short-term debt (Maturities 90 days or less) | $(347) | $(1,694) | $1,347 | ||||||||
| Payment of short-term debt (Maturities greater than 90 days) | (300) | — | (300) | ||||||||
| Borrowing under term loan | — | 200 | (200) | ||||||||
| Repayment of term loan | (500) | — | (500) | ||||||||
| Debt issuance costs | (1) | (2) | 1 | ||||||||
| Capital contribution by Con Edison | 981 | 1,225 | (244) | ||||||||
| Dividend to Con Edison | (309) | (284) | (25) | ||||||||
| NET CASH FLOWS USED IN FINANCING ACTIVITIES | $(476) | $(555) | $79 |
Net cash flows used in financing activities for CECONY were $79 million lower for the three months ended March 31, 2026 compared with the 2025 period and reflects the following transactions:
- lower net payment of short-term debt (maturities 90 days or less) of $1,347 million.
Offset in part by
-
an increase due to the repayment of a term loan of ($500 million);
-
higher payment of short-term debt (maturities greater than 90 days) of ($300 million);
-
a decrease in contributed equity by Con Edison of ($244 million); and
-
a decrease in borrowing under term loan of ($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, 2026 and 2025 and the average daily balances for the three months ended March 31, 2026 and 2025 for Con Edison and CECONY were as follows:
| 2026 | 2025 | |||||||||||||
| (Millions of Dollars, except Weighted Average Yield) | Outstanding at March 31, | Daily average | Outstanding at March 31, | Daily average | ||||||||||
| Con Edison | $869 | $316 | $350 | $1,362 | ||||||||||
| CECONY | $593 | $843 | $— | $952 | ||||||||||
| Weighted average yield | 4.0 | % | 3.9 | % | 4.6 | % | 4.6 | % |
Capital Resources
For each of the Companies, the common equity ratio at March 31, 2026 and December 31, 2025 was:
| Common Equity Ratio (Percent of total capitalization) | ||||||||
| March 31, 2026 | December 31, 2025 | |||||||
| Con Edison | 50.0 | 48.6 | ||||||
| CECONY | 49.3 | 47.8 |
Assets, Liabilities and Equity
The Companies' assets, liabilities, and equity at March 31, 2026 and December 31, 2025 are summarized as follows.
| CECONY | O&R | Con Edison Transmission | Other (a) | Con Edison (b) | ||||||||||||||||||||||||||||
| (Millions of Dollars) | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||||
| ASSETS | ||||||||||||||||||||||||||||||||
| Current assets | $5,994 | $6,433 | $413 | $337 | $58 | $21 | $(179) | $(41) | $6,286 | $6,750 | ||||||||||||||||||||||
| Investments | 727 | 725 | 22 | 22 | 311 | 462 | 3 | 4 | 1,063 | 1,213 | ||||||||||||||||||||||
| Net plant | 52,517 | 51,861 | 3,584 | 3,540 | 3 | 3 | — | (1) | 56,104 | 55,403 | ||||||||||||||||||||||
| Other noncurrent assets | 10,338 | 10,297 | 533 | 521 | 1 | 2 | 416 | 417 | 11,288 | 11,237 | ||||||||||||||||||||||
| Total Assets | $69,576 | $69,316 | $4,552 | $4,420 | $373 | $488 | $240 | $379 | $74,741 | $74,603 | ||||||||||||||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||||||||||
| Current liabilities | $4,705 | $5,944 | $339 | $396 | $2 | $18 | $240 | $256 | $5,286 | $6,614 | ||||||||||||||||||||||
| Noncurrent liabilities | 17,364 | 17,275 | 1,273 | 1,242 | 28 | (61) | (360) | (208) | 18,305 | 18,248 | ||||||||||||||||||||||
| Long-term debt | 24,063 | 24,060 | 1,491 | 1,491 | — | — | — | — | 25,554 | 25,551 | ||||||||||||||||||||||
| Equity | 23,444 | 22,037 | 1,449 | 1,291 | 343 | 531 | 360 | 331 | 25,596 | 24,190 | ||||||||||||||||||||||
| Total Liabilities and Equity | $69,576 | $69,316 | $4,552 | $4,420 | $373 | $488 | $240 | $379 | $74,741 | $74,603 |
(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, with the sale and transfer completed in January 2025. See Note Q 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, 2026 were $439 million lower than at December 31, 2025. The change in current assets primarily reflects a decrease in cash and temporary cash investments ($1,517 million) offset in part by increases in prepayments ($693 million), regulatory assets ($262 million), and accounts receivable from affiliated companies ($142 million).
Net plant at March 31, 2026 was $656 million higher than at December 31, 2025. The change in net plant primarily reflects an increase in electric ($571 million), gas ($94 million), steam ($16 million), general ($49 million) plant balances and increase in construction work in progress ($25 million), offset by an increase in accumulated depreciation ($99 million).
Current liabilities at March 31, 2026 were $1,239 million lower than at December 31, 2025. The change in current liabilities primarily reflects a decrease in notes payable ($647 million) and the repayment of a term loan ($500 million). See Note D to the First Quarter Financial Statements.
Noncurrent liabilities at March 31, 2026 were $89 million higher than at December 31, 2025. The change in noncurrent liabilities primarily reflects increases in deferred income taxes and unamortized investment tax credits ($439 million) and pensions and retiree benefits ($17 million) offset in part by decreases in net unbilled revenue deferrals ($174 million), pension and other postretirement employee benefit deferrals ($70 million), unrecognized other postretirement benefit cost ($63 million), late payment charge deferral ($50 million) and storm reserve costs ($8 million). See Note B and Note E to the First Quarter Financial Statements.
Equity at March 31, 2026 was $1,407 million higher than at December 31, 2025. The change in equity primarily reflects net income for the three months ended March 31, 2026 ($733 million), capital contributions from Con Edison ($981 million) in 2026 and a change in stock awards ($2 million), offset in part by common stock dividends to Con Edison ($309 million) in 2026.
O&R
Current assets at March 31, 2026 were $76 million higher than at December 31, 2025. The change in current assets primarily reflects an increase in customer accounts receivable, net of allowance for uncollectible accounts ($42 million) (see "Aged Accounts Receivable Balances,” above) and cash and temporary cash investments ($29 million).
Net plant at March 31, 2026 was $44 million higher than at December 31, 2025. The change in net plant primarily reflects an increase in electric ($65 million), gas ($39 million) and general ($3 million) plant balances, offset in part by a decrease in construction work in progress ($44 million) and an increase in accumulated depreciation ($19 million).
Other noncurrent assets at March 31, 2026 were $12 million higher than at December 31, 2025. The change in other noncurrent assets primarily reflects an increase in regulatory assets ($12 million).
Current liabilities at March 31, 2026 were $57 million lower than at December 31, 2025. The change in current liabilities primarily reflects a decrease in accounts payable ($63 million), notes payable ($20 million) and accounts payable to affiliated companies ($12 million), offset in part by increase in regulatory liabilities ($42 million).
Noncurrent liabilities at March 31, 2026 were $31 million higher than at December 31, 2025. The change in noncurrent liabilities primarily reflects an increase in deferred income taxes and unamortized investment tax credits ($16 million), regulatory liabilities ($8 million), and other deferred credits and noncurrent liabilities ($8 million).
Equity at March 31, 2026 was $158 million higher than at December 31, 2025. The change in equity primarily reflects net income for the three months ended March 31, 2026 ($52 million) and capital contributions from Con Edison ($125 million) in 2026, offset in part by common stock dividends to Con Edison ($18 million) in 2026 and a decrease in other comprehensive income ($1 million).
Con Edison Transmission
Current assets at March 31, 2026 were $37 million higher than at December 31, 2025. The increase in current assets primarily reflects higher cash and temporary investments ($6 million) and tax receivable associated with the sale of Con Edison Transmission's equity interest in MVP ($31 million).
Investments at March 31, 2026 were $151 million lower than at December 31, 2025. The decrease in investments primarily reflects the sale of the equity interest in MVP ($168 million) offset in part by additional investment in and earnings from New York Transco ($26 million).
Current liabilities March 31, 2026 were $16 million lower than at December 31, 2025. The decrease in current liabilities primarily reflects transaction costs associated with the sale of the equity interest in MVP that were settled in January 2026 ($16 million).
Noncurrent liabilities at March 31, 2026 were $89 million higher than at December 31, 2025. The change in noncurrent liabilities primarily reflects the increase in accumulated deferred income taxes ($78 million) and reversal of the regulatory asset for future income taxes ($11 million) related to the sale of the equity interest in MVP.
Equity at March 31, 2026 was $188 million lower than at December 31, 2025. The change in equity primarily reflects net income for the three months ended March 31, 2026 ($143 million), offset in part by common stock dividends to Con Edison ($331 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) | Common Equity Ratio | |||||||||||||||||
| Transmission Owner Transmission Solutions (TOTS) (a) | 45.7% | 2016 | 9.99% plus 0.50% = 10.49% | 54% | ||||||||||||||||
| New York Energy Solution (NYES) (b) | 45.7% | 2023/2025 | 9.99% plus 0.50% to 1.00% = 10.49% to 10.89% (c) | 54% | ||||||||||||||||
| Propel NY Energy (d) | 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.
(b)The NYES project was constructed to relieve transmission congestion between upstate and downstate (estimated cost of approximately $800 million).
(c)Includes a cost containment reduction.
(d)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 an interest of approximately 71.2 percent in Honeoye, a company that operates a gas storage facility in upstate New York and in which CECONY owns the remaining interest. In April 2026, CECONY and Con Edison Transmission entered into an agreement to sell their interests in Honeoye for $5 million in aggregate, of which approximately $1.5 million was attributed to CECONY, before certain closing adjustments and expenses. The closing is expected to occur following approval from the NYSPSC.
During the first quarter of 2026, Con Edison Transmission completed the sale of its approximately 6.6 percent equity interest in MVP to the two founding members of MVP for total aggregate consideration of $357.5 million, before certain closing adjustments and expenses. See "Investment in Mountain Valley Pipeline, LLC (MVP)" in Note A.
Environmental Matters
Electric Vehicles
In March 2026, the NYSDPS issued a notice to New York utilities, including CECONY and O&R, alleging deficiencies in data collection and reporting for the electric vehicle light-duty make ready program. The Utilities are reviewing the matter and engaging with the NYSDPS but are unable to predict the outcome or potential impact, which could include the NYSPSC initiating an enforcement action. Also in March 2026, the NYSPSC directed New York utilities, including CECONY and O&R, to end the level 2 charger component of the electric vehicle program because of slower than expected electric vehicle adoption and to pause the direct current fast charger element of the program until they meet certain data collection requirements.
Energy Storage
In April 2026, the NYSPSC issued an order that approved modifications to New York utilities’ portfolio of Dynamic Load Management (DLM) programs and updated reporting requirements. The order authorized CECONY to expand its portfolio of DLM programs to include a Bring Your Own Battery (BYOB) program that enables customer-sited energy storage of less than 50 kW to participate in demand response and receive incentives for supporting the energy system during periods of high demand. The program is intended to reduce demand on the distribution system and improve reliability on high-demand days. CECONY will implement the BYOB program and file the associated tariff changes in accordance with the NYSPSC’s order.
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, 2026, a 10 percent increase in interest rates applicable to its variable rate debt would result in an increase in annual interest expense of $5 million and $4 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, 2026, a 10 percent decline in market prices would result in a decline in fair value of $174 million for the derivative instruments used by the Utilities to hedge purchases of electricity and gas, of which $159 million is for CECONY and $15 million is for O&R. As of March 31, 2025, Con Edison estimated that 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. 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. See “Electric Supply” and “Aged Accounts Receivable Balances,” above.
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 20 to 24 percent equity securities, 55 to 65 percent debt securities and 14 to 22 percent alternatives. At March 31, 2026, the pension plan investments consisted of 21 percent equity securities, 60 percent debt securities and 19 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.
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