Cover and table of contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

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

FOR THE QUARTERLY PERIOD ENDED June 30, 2026

OR

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

For the transition period from to

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

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

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

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

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

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

Con Edison			Yes			☒			No ☐
CECONY			Yes			☒			No ☐

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

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

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

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

Con Edison			Yes			☐			No			☒
CECONY			Yes			☐			No			☒

As of July 31, 2026, Con Edison had outstanding 369,828,633 Common Shares ($.10 par value). All of the outstanding common equity of CECONY is held by Con Edison.

Filing Format

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

Glossary of Terms

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

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

Environmental
GHG						Greenhouse gases
Superfund						Federal Comprehensive Environmental Response, Compensation and Liability Act of 1980 and similar state statutes
Units of Measure
Dt						Dekatherm
kWh						Kilowatt-hour
MMlb						Million pounds
MW						Megawatt or thousand kilowatts
MWh						Megawatt hour
Other
COVID-19						Coronavirus Disease 2019 and any mutations or variants thereof
Second Quarter Financial Statements						Consolidated financial statements included in the Companies' Quarterly Report on Form 10-Q for the quarterly period ended June 30 of the current year
IRA						The federal Inflation Reduction Act, as enacted on August 16, 2022
OBBBA						The federal One Big Beautiful Bill Act, as enacted on July 4, 2025

TABLE OF CONTENTS

						PAGE
PART I—Financial Information
ITEM 1			Financial Statements (Unaudited)
			Con Edison
			Consolidated Income Statement			7
			Consolidated Statement of Comprehensive Income			8
			Consolidated Statement of Cash Flows			9
			Consolidated Balance Sheet			10
			Consolidated Statement of Shareholders' Equity			12
			CECONY
			Consolidated Income Statement			13
			Consolidated Statement of Comprehensive Income			14
			Consolidated Statement of Cash Flows			15
			Consolidated Balance Sheet			16
			Consolidated Statement of Shareholder’s Equity			18
			Notes to the Financial Statements (Unaudited)			19
			Note A - Summary of Significant Accounting Policies and Other Matters			19
			Note B - Regulatory Matters			21
			Note C - Capitalization			24
			Note D - Short-Term Borrowing			26
			Note E - Pension Benefits			26
			Note F - Other Postretirement Benefits			27
			Note G - Environmental Matters			28
			Note H - Material Contingencies			30
			Note I - Leases			31
			Note J - Income Tax			31
			Note K - Revenue Recognition			33
			Note L - Current Expected Credit Losses			34
			Note M - Financial Information by Business Segment			36
			Note N - Derivative Instruments and Hedging Activities			40
			Note O - Fair Value Measurements			42
			Note P - Related Party Transactions			45
			Note Q - Dispositions			45
			Note R - New Financial Accounting Standards			46
ITEM 2			Management’s Discussion and Analysis of Financial Condition and Results of Operations			47
ITEM 3			Quantitative and Qualitative Disclosures About Market Risk			80
ITEM 4			Controls and Procedures			81
PART II—Other Information						82
ITEM 1			Legal Proceedings			82
ITEM 1A			Risk Factors			82
ITEM 5			Other Information			82
ITEM 6			Exhibits			82
			Signatures			83

FORWARD-LOOKING STATEMENTS

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

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

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

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

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

• a cyber attack could adversely affect the Companies;

• artificial intelligence is an emerging area of technology that has the potential to impact various aspects of the Companies' business operations and customer interactions;

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

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

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

• changes to tax laws could adversely affect the Companies;

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

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

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

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

• the Companies face risks related to supply chain disruptions, inflation and the imposition of tariffs (or subsequent changes to tariffs once announced or implemented); and

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

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

Consolidated Edison, Inc.

CONSOLIDATED INCOME STATEMENT (UNAUDITED)

			For the Three Months Ended June 30,						For the Six Months Ended June 30,
(Millions of Dollars/Except Share Data)			2026			2025			2026			2025
OPERATING REVENUES
Electric			$3,139			$2,777			$6,177			$5,678
Gas			811			711			2,435			2,253
Steam			118			106			550			460
Non-utility			1			1			2			2
TOTAL OPERATING REVENUES			4,069			3,595			9,164			8,393
OPERATING EXPENSES
Purchased power			837			649			1,593			1,370
Fuel			56			27			245			154
Gas purchased for resale			156			171			582			533
Other operations and maintenance			913			923			1,851			1,875
Depreciation and amortization			578			576			1,150			1,140
Taxes, other than income taxes			977			894			2,013			1,841
TOTAL OPERATING EXPENSES			3,517			3,240			7,434			6,913
OPERATING INCOME			552			355			1,730			1,480
Gain on sale of equity interest in Mountain Valley Pipeline, LLC			—			—			189			—
OTHER INCOME (DEDUCTIONS)
Investment income			11			17			29			33
Other income			148			214			289			415
Allowance for equity funds used during construction			24			18			47			36
Other deductions			(13)			(8)			(27)			(22)
TOTAL OTHER INCOME			170			241			338			462
INCOME BEFORE INTEREST AND INCOME TAX EXPENSE			722			596			2,257			1,942
INTEREST EXPENSE (INCOME)
Interest on long-term debt			313			292			621			584
Other interest expense			20			26			38			64
Allowance for borrowed funds used during construction			(19)			(18)			(37)			(36)
NET INTEREST EXPENSE			314			300			622			612
INCOME BEFORE INCOME TAX EXPENSE			408			296			1,635			1,330
INCOME TAX EXPENSE			100			50			403			292
NET INCOME FOR COMMON STOCK			$308			$246			$1,232			$1,038
Net income per common share - basic			$0.83			$0.68			$3.37			$2.93
Net income per common share - diluted			$0.83			$0.68			$3.36			$2.92
AVERAGE NUMBER OF SHARES OUTSTANDING—BASIC (IN MILLIONS)			368.8			360.4			365.6			354.5
AVERAGE NUMBER OF SHARES OUTSTANDING—DILUTED (IN MILLIONS)			370.0			361.7			366.8			355.8

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

Consolidated Edison, Inc.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)

			Three Months Ended June 30,						Six Months Ended June 30,
(Millions of Dollars)			2026			2025			2026			2025
NET INCOME			$308			$246			$1,232			$1,038
OTHER COMPREHENSIVE LOSS, NET OF TAXES
Pension and other postretirement benefit plan liability adjustments, net of taxes			—			—			(3)			(12)
TOTAL OTHER COMPREHENSIVE LOSS, NET OF TAXES			—			—			(3)			(12)
COMPREHENSIVE INCOME			$308			$246			$1,229			$1,026

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

Consolidated Edison, Inc.

CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)

			For the Six Months Ended June 30,
(Millions of Dollars)			2026			2025
OPERATING ACTIVITIES
Net income			$1,232			$1,038
PRINCIPAL NON-CASH CHARGES (CREDITS) TO INCOME
Depreciation and amortization			1,150			1,140
Deferred income taxes			451			301
Rate case amortization and accruals			(55)			130
Common equity component of allowance for funds used during construction			(47)			(36)
Gain on sale of equity interest in Mountain Valley Pipeline, LLC			(189)			—
Other non-cash items, net			(63)			(63)
CHANGES IN ASSETS AND LIABILITIES
Accounts receivable – customers, net			66			52
Unbilled revenue and net unbilled revenue deferrals			(44)			22
Other receivables, net and other current assets			(96)			166
Taxes receivable			(53)			144
Prepayments			(59)			71
Accounts payable			(229)			35
Pensions and retiree benefits obligations, net			(210)			(284)
Pensions and retiree benefits contributions			(12)			(9)
Accrued taxes			(7)			(13)
Accrued interest			6			12
Superfund and other environmental costs, net			(3)			(14)
Distributions from equity investments			26			33
Deferred charges, noncurrent assets, leases, net and other regulatory assets			(137)			(178)
Deferred credits, noncurrent liabilities and other regulatory liabilities			292			206
Other current liabilities			(48)			63
NET CASH FLOWS FROM OPERATING ACTIVITIES			1,971			2,816
INVESTING ACTIVITIES
Utility capital expenditures			(2,473)			(2,420)
Cost of removal less salvage			(208)			(251)
Non-utility capital expenditures			(1)			(1)
Proceeds from sale of equity interest in Mountain Valley Pipeline, LLC			358			—
Proceeds from sale of Broken Bow II, net of cash and cash equivalents sold			—			45
Other investing activities			(30)			(28)
NET CASH FLOWS USED IN INVESTING ACTIVITIES			(2,354)			(2,655)
FINANCING ACTIVITIES
Net payment of short-term debt (Maturities 90 days or less)			(554)			(950)
Payment of short-term debt (Maturities greater than 90 days)			(300)			—
Borrowing under term loan			—			200
Repayment of term loan			(500)			—
Issuance of long-term debt			1,300			—
Debt issuance costs			(17)			(1)
Common stock dividends			(624)			(576)
Issuance of common shares - public offering			884			1,308
Issuance of common shares for stock plans			34			32
NET CASH FLOWS FROM FINANCING ACTIVITIES			223			13
CASH, TEMPORARY CASH INVESTMENTS, AND RESTRICTED CASH:
NET CHANGE FOR THE PERIOD			(160)			174
BALANCE AT BEGINNING OF PERIOD			1,630			1,333
BALANCE AT END OF PERIOD			$1,470			$1,507
SUPPLEMENTAL DISCLOSURE OF CASH INFORMATION
Cash paid (received) during the period for:
Interest, net of capitalized interest			$587			$560
Income taxes			$19			$(181)
SUPPLEMENTAL DISCLOSURE OF NON-CASH INFORMATION
Capital expenditures in accounts payable			$848			$342
Issuance of common shares for dividend reinvestment			$24			$25
Equipment acquired but unpaid as of end of period			$—			$6

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

Consolidated Edison, Inc.

CONSOLIDATED BALANCE SHEET (UNAUDITED)

(Millions of Dollars)			June 30, 2026			December 31, 2025
ASSETS
CURRENT ASSETS
Cash and temporary cash investments			$1,470			$1,629
Accounts receivable – customers, net allowance for uncollectible accounts of $458 and $507 in 2026 and 2025, respectively			2,559			2,583
Other receivables, net allowance for uncollectible accounts of $10 and $35 in 2026 and 2025, respectively			176			232
Accrued unbilled revenue			668			821
Taxes receivable			64			11
Fuel oil, gas in storage, materials and supplies, at average cost			534			530
Prepayments			440			381
Regulatory assets			271			103
Revenue decoupling mechanism receivable			242			213
Fair value of derivative assets			197			86
Other current assets			169			161
TOTAL CURRENT ASSETS			6,790			6,750
INVESTMENTS			1,101			1,213
UTILITY PLANT, AT ORIGINAL COST
Electric			45,885			44,488
Gas			16,450			16,127
Steam			3,290			3,260
General			4,744			4,576
TOTAL			70,369			68,451
Less: Accumulated depreciation			16,933			16,463
Net			53,436			51,988
Construction work in progress			3,666			3,414
NET UTILITY PLANT			57,102			55,402
NON-UTILITY PLANT
Non-utility property, net accumulated depreciation of $25 in 2026 and 2025			2			1
NET PLANT			57,104			55,403
OTHER NONCURRENT ASSETS
Goodwill			406			406
Regulatory assets			5,681			5,599
Pension and retiree benefits			4,328			4,227
Operating lease right-of-use asset			468			489
Fair value of derivative assets			145			126
Other deferred charges and noncurrent assets			436			390
TOTAL OTHER NONCURRENT ASSETS			11,464			11,237
TOTAL ASSETS			$76,459			$74,603

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

Consolidated Edison, Inc.

CONSOLIDATED BALANCE SHEET (UNAUDITED)

(Millions, except per share amounts)			June 30, 2026			December 31, 2025
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Long-term debt due within one year			$250			$250
Term loan			—			500
Notes payable			721			1,575
Accounts payable			1,772			1,947
Customer deposits			548			498
Accrued taxes			97			104
Accrued interest			229			223
Accrued wages			150			140
Fair value of derivative liabilities			20			46
Regulatory liabilities			534			249
System benefit charge			391			415
Operating lease liabilities			125			123
Customer credits			277			253
Other current liabilities			240			291
TOTAL CURRENT LIABILITIES			5,354			6,614
NONCURRENT LIABILITIES
Provision for injuries and damages			186			201
Pensions and retiree benefits			582			564
Superfund and other environmental costs			1,078			1,079
Asset retirement obligations			489			478
Fair value of derivative liabilities			3			8
Deferred income taxes and unamortized investment tax credits			10,127			9,619
Operating lease liabilities			381			377
Regulatory liabilities			5,124			5,374
Other deferred credits and noncurrent liabilities			573			548
TOTAL NONCURRENT LIABILITIES			18,543			18,248
LONG-TERM DEBT			26,843			25,551
Commitments, Contingencies, and Guarantees (Note B, Note G, and Note H)
SHAREHOLDERS' EQUITY
Common stock, $0.10 par value, 500 shares authorized, shares outstanding of 370 and 361, respectively			40			39
Treasury stock, $0.10 par value, 34 shares			(2,017)			(2,017)
Additional paid-in-capital			12,394			11,436
Retained earnings			15,441			14,857
Accumulated other comprehensive income			12			15
Capital stock expense			(151)			(140)
TOTAL SHAREHOLDERS' EQUITY			25,719			24,190
TOTAL LIABILITIES AND EQUITY			$76,459			$74,603

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

Consolidated Edison, Inc.

CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (UNAUDITED)

(In Millions, except for dividends per share)			Common Stock						Additional Paid-In Capital			Retained Earnings			Treasury Stock						Capital Stock Expense			Accumulated Other Comprehensive Income (Loss)			Total
Shares			Amount			Shares			Amount
BALANCE AS OF DECEMBER 31, 2024			347			$38			$9,986			$14,048			34			$(2,017)			$(122)			$29			$21,962
Net income												791															791
Common stock dividends ($0.85 per share)												(295)															(295)
Issuance of common shares - public offering			13						1,326												(18)						1,308
Issuance of common shares for stock plans						1			28																		29
Other comprehensive loss																								(12)			(12)
BALANCE AS OF MARCH 31, 2025			360			$39			$11,340			$14,544			34			$(2,017)			$(140)			$17			$23,783
Net income												246															246
Common stock dividends ($0.85 per share)												(306)															(306)
Issuance of common shares for stock plans			1						30																		30
Stock awards									3																		3
BALANCE AS OF JUNE 30, 2025			361			$39			$11,373			$14,484			34			$(2,017)			$(140)			$17			$23,756
BALANCE AS OF DECEMBER 31, 2025			361			$39			$11,436			$14,857			34			$(2,017)			$(140)			$15			$24,190
Net income												924															924
Common stock dividends ($0.89 per share)												(320)															(320)
Issuance of common shares - public offering			7						776																		776
Issuance of common shares for stock plans						1			35												(9)						27
Stock awards									2																		2
Other comprehensive loss																								(3)			(3)
BALANCE AS OF MARCH 31, 2026			368			$40			$12,249			$15,461			34			$(2,017)			$(149)			$12			$25,596
Net income												308															308
Common stock dividends ($0.89 per share)												(328)															(328)
Issuance of common shares - public offering			1						108												(1)						107
Issuance of common shares for stock plans			1						34												(1)						33
Stock awards									3																		3
BALANCE AS OF JUNE 30, 2026			370			$40			$12,394			$15,441			34			$(2,017)			$(151)			$12			$25,719

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

Consolidated Edison Company of New York, Inc.

CONSOLIDATED INCOME STATEMENT (UNAUDITED)

			For the Three Months Ended June 30,						For the Six Months Ended June 30,
(Millions of Dollars)			2026			2025			2026			2025
OPERATING REVENUES
Electric			$2,934			$2,581			$5,692			$5,267
Gas			753			653			2,217			2,055
Steam			118			106			550			460
TOTAL OPERATING REVENUES			3,805			3,340			8,459			7,782
OPERATING EXPENSES
Purchased power			765			579			1,374			1,215
Fuel			56			27			245			154
Gas purchased for resale			135			148			496			453
Other operations and maintenance			814			826			1,658			1,680
Depreciation and amortization			544			544			1,082			1,077
Taxes, other than income taxes			952			869			1,958			1,789
TOTAL OPERATING EXPENSES			3,266			2,993			6,813			6,368
OPERATING INCOME			539			347			1,646			1,414
OTHER INCOME (DEDUCTIONS)
Investment and other income			140			202			275			393
Allowance for equity funds used during construction			21			17			40			33
Other deductions			(12)			(10)			(23)			(19)
TOTAL OTHER INCOME			149			209			292			407
INCOME BEFORE INTEREST AND INCOME TAX EXPENSE			688			556			1,938			1,821
INTEREST EXPENSE (INCOME)
Interest on long-term debt			295			277			583			554
Other interest expense			16			25			30			58
Allowance for borrowed funds used during construction			(17)			(16)			(33)			(33)
NET INTEREST EXPENSE			294			286			580			579
INCOME BEFORE INCOME TAX EXPENSE			394			270			1,358			1,242
INCOME TAX EXPENSE			98			48			329			275
NET INCOME			$296			$222			$1,029			$967

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

Consolidated Edison Company of New York, Inc.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)

			For the Three Months Ended June 30,						For the Six Months Ended June 30,
(Millions of Dollars)			2026			2025			2026			2025
NET INCOME			$296			$222			$1,029			$967
OTHER COMPREHENSIVE LOSS, NET OF TAXES
Pension and other postretirement benefit plan liability adjustments, net of taxes			—			—			—			(8)
TOTAL OTHER COMPREHENSIVE LOSS, NET OF TAXES			—			—			—			(8)
COMPREHENSIVE INCOME			$296			$222			$1,029			$959

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

Consolidated Edison Company of New York, Inc.

CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)

			For the Six Months Ended June 30,
(Millions of Dollars)			2026			2025
OPERATING ACTIVITIES
Net income			$1,029			$967
PRINCIPAL NON-CASH CHARGES (CREDITS) TO INCOME
Depreciation and amortization			1,082			1,077
Deferred income taxes			472			214
Rate case amortization and accruals			(54)			131
Common equity component of allowance for funds used during construction			(40)			(33)
Other non-cash items, net			(40)			(32)
CHANGES IN ASSETS AND LIABILITIES
Accounts receivable – customers, net			66			55
Other receivables, net and other current assets			(101)			87
Unbilled revenue and net unbilled revenue deferrals			(51)			12
Accounts receivable from (to) affiliated companies			(195)			293
Prepayments			(64)			75
Accounts payable			(197)			52
Accounts payable from (to) affiliated companies			(1)			10
Pensions and retiree benefits obligations, net			(205)			(274)
Pensions and retiree benefits contributions			(12)			(9)
Superfund and other environmental costs, net			(5)			(14)
Accrued taxes			(3)			(13)
Accrued interest			6			12
Deferred charges, noncurrent assets, leases, net and other regulatory assets			(129)			(183)
Deferred credits, noncurrent liabilities and other regulatory liabilities			247			206
Other current liabilities			(39)			67
NET CASH FLOWS FROM OPERATING ACTIVITIES			1,766			2,700
INVESTING ACTIVITIES
Utility capital expenditures			(2,246)			(2,233)
Cost of removal less salvage			(203)			(246)
NET CASH FLOWS USED IN INVESTING ACTIVITIES			(2,449)			(2,479)
FINANCING ACTIVITIES
Net payment of short-term debt (Maturities 90 days or less)			(460)			(894)
Payment of short-term debt (Maturities greater than 90 days)			(300)			—
Borrowing under term loan			—			200
Repayment of term loan			(500)			—
Issuance of long-term debt			1,300			—
Debt issuance costs			(17)			(1)
Capital contribution by Con Edison			1,114			1,250
Dividend to Con Edison			(617)			(568)
NET CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES			520			(13)
CASH AND TEMPORARY CASH INVESTMENTS
NET CHANGE FOR THE PERIOD			(163)			208
BALANCE AT BEGINNING OF PERIOD			1,581			1,254
BALANCE AT END OF PERIOD			$1,418			$1,462
SUPPLEMENTAL DISCLOSURE OF CASH INFORMATION
Cash paid (received) during the period for:
Interest, net of capitalized interest			$548			$525
Income taxes			$74			$(199)
SUPPLEMENTAL DISCLOSURE OF NON-CASH INFORMATION
Capital expenditures in accounts payable			$787			$310
Equipment acquired but unpaid as of end of period			$—			$6

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

Consolidated Edison Company of New York, Inc.

CONSOLIDATED BALANCE SHEET (UNAUDITED)

(Millions of Dollars)			June 30, 2026			December 31, 2025
ASSETS
CURRENT ASSETS
Cash and temporary cash investments			$1,418			$1,581
Accounts receivable – customers, net allowance for uncollectible accounts of $450 and $500 in 2026 and 2025, respectively			2,448			2,470
Other receivables, net allowance for uncollectible accounts of $8 and $27 in 2026 and 2025, respectively			158			213
Accrued unbilled revenue			623			769
Accounts receivable from affiliated companies			265			70
Fuel oil, gas in storage, materials and supplies, at average cost			481			477
Prepayments			393			329
Regulatory assets			264			95
Revenue decoupling mechanism receivable			242			202
Fair value of derivative assets			178			74
Other current assets			163			153
TOTAL CURRENT ASSETS			6,633			6,433
INVESTMENTS			749			725
UTILITY PLANT, AT ORIGINAL COST
Electric			43,158			41,853
Gas			15,120			14,851
Steam			3,290			3,260
General			4,383			4,226
TOTAL			65,951			64,190
Less: Accumulated depreciation			15,747			15,321
Net			50,204			48,869
Construction work in progress			3,203			2,991
NET UTILITY PLANT			53,407			51,860
NON-UTILITY PROPERTY
Non-utility property, net accumulated depreciation of $25 in 2026 and 2025			2			1
NET PLANT			53,409			51,861
OTHER NONCURRENT ASSETS
Regulatory assets			5,294			5,235
Operating lease right-of-use asset			467			488
Pension and retiree benefits			4,206			4,106
Fair value of derivative assets			137			117
Other deferred charges and noncurrent assets			392			351
TOTAL OTHER NONCURRENT ASSETS			10,496			10,297
TOTAL ASSETS			$71,287			$69,316

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

Consolidated Edison Company of New York, Inc.

CONSOLIDATED BALANCE SHEET (UNAUDITED)

(Millions, except per share amounts)			June 30, 2026			December 31, 2025
LIABILITIES AND SHAREHOLDER’S EQUITY
CURRENT LIABILITIES
Long-term debt due within one year			$250			$250
Term loan			—			500
Notes payable			480			1,240
Accounts payable			1,631			1,752
Accounts payable to affiliated companies			34			35
Customer deposits			529			481
Accrued taxes			92			95
Accrued taxes to affiliated companies			2			2
Accrued interest			212			206
Accrued wages			137			128
Fair value of derivative liabilities			14			41
Regulatory liabilities			443			205
System benefit charge			360			382
Operating lease liabilities			124			122
Customer credits			278			253
Other current liabilities			209			252
TOTAL CURRENT LIABILITIES			4,795			5,944
NONCURRENT LIABILITIES
Provision for injuries and damages			182			197
Pensions and retiree benefits			541			522
Superfund and other environmental costs			980			980
Asset retirement obligations			486			476
Fair value of derivative liabilities			3			6
Deferred income taxes and unamortized investment tax credits			9,934			9,400
Operating lease liabilities			381			377
Regulatory liabilities			4,607			4,879
Other deferred credits and noncurrent liabilities			460			438
TOTAL NONCURRENT LIABILITIES			17,574			17,275
LONG-TERM DEBT			25,351			24,060
COMMITMENTS AND CONTINGENCIES (Note B, Note G and Note H)
SHAREHOLDER’S EQUITY
Common stock, $2.50 par value, 340 shares authorized, shares outstanding of 235			589			589
Repurchased Con Edison Stock			(962)			(962)
Additional paid-in-capital			11,730			10,604
Retained earnings			12,299			11,887
Accumulated other comprehensive loss			(3)			(3)
Capital stock expense			(86)			(78)
TOTAL SHAREHOLDER'S EQUITY			23,567			22,037
TOTAL LIABILITIES AND SHAREHOLDER’S EQUITY			$71,287			$69,316

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

Consolidated Edison Company of New York, Inc.

CONSOLIDATED STATEMENT OF SHAREHOLDER’S EQUITY (UNAUDITED)

			Common Stock						Additional Paid-In Capital			Retained Earnings			Repurchased Con Edison Stock			Capital Stock Expense			Accumulated Other Comprehensive Income (Loss)			Total
(In Millions)			Shares			Amount
BALANCE AS OF DECEMBER 31, 2024			235			$589			$9,281			$11,115			$(962)			$(62)			$10			$19,971
Net income												745												745
Common stock dividend to Con Edison												(284)												(284)
Capital contribution by Con Edison									1,241									(16)						1,225
Other comprehensive loss																					(8)			(8)
BALANCE AS OF MARCH 31, 2025			235			$589			$10,522			$11,576			$(962)			$(78)			$2			$21,649
Net income												222												222
Common stock dividend to Con Edison												(284)												(284)
Capital contribution by Con Edison									25															25
Stock awards									3															3
BALANCE AS OF JUNE 30, 2025			235			$589			$10,550			$11,514			$(962)			$(78)			$2			$21,615
BALANCE AS OF DECEMBER 31, 2025			235			$589			$10,604			$11,887			$(962)			$(78)			$(3)			$22,037
Net income												733												733
Common stock dividend to Con Edison												(309)												(309)
Capital contribution by Con Edison									988									(7)						981
Stock awards									2															2
BALANCE AS OF MARCH 31, 2026			235			$589			$11,594			$12,311			$(962)			$(85)			$(3)			$23,444
Net income												296												296
Common stock dividend to Con Edison												(308)												(308)
Capital contribution by Con Edison									134									(1)						133
Stock awards									2															2
BALANCE AS OF JUNE 30, 2026			235			$589			$11,730			$12,299			$(962)			$(86)			$(3)			$23,567

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

NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)

General

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

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

The separate interim consolidated financial statements of each of the Companies are unaudited but, in the opinion of their respective managements, reflect all adjustments (which include only normally recurring adjustments) necessary for a fair statement of the results for the interim periods presented. The Companies’ separate interim consolidated financial statements should be read together with their separate audited financial statements (including the combined notes thereto) included in Item 8 of their combined Annual Report on Form 10-K for the year ended December 31, 2025, and their separate unaudited financial statements (including the combined notes thereto) included in Part 1, Item 1 of their combined Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2026.

Con Edison has two regulated utility subsidiaries: CECONY and O&R. CECONY provides electric service and gas service in New York City and Westchester County. The company also provides steam service in parts of Manhattan. O&R, along with its regulated utility subsidiary, provides electric service in southeastern New York and northern New Jersey and gas service in southeastern New York. Con Edison Transmission develops and invests in electric transmission projects and owns interests in electric assets. See “Investments” in Note A.

Note A – Summary of Significant Accounting Policies and Other Matters

Accounting Policies

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

Investments

Con Edison's investments consist primarily of the fair value of the Utilities' supplemental retirement income plan and deferred income plan assets.

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.

Investment in Mountain Valley Pipeline, LLC (MVP)

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. Prior to the sale, Con Edison recorded its pro rata share of earnings from its equity interest in MVP, adjusted for accretion of the basis difference and income taxes, on its consolidated income statement of $7 million ($5 million after-tax) and $15 million ($11 million after-tax) for the six months ended June 30, 2026 and 2025, respectively. See Note Q for further information.

Reclassification

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

Earnings Per Share

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

Potentially dilutive securities for Con Edison consist of restricted stock units and deferred stock units for which the average market price of the common shares for the period was greater than the estimated vesting price, and its common shares that are subject to forward sale agreements (see Note C). Before the issuance of common shares upon settlement of the forward sale agreements, the shares will be reflected in the company’s diluted earnings per share calculations using the treasury stock method. Under this method, the number of common shares used in calculating diluted earnings per share is deemed to be increased by the excess, if any, of the number of shares that would be issued upon physical settlement of the forward sale agreements over the number of shares that could be purchased by the company in the market (based on the average market price during the period) using the proceeds due upon physical settlement (based on the adjusted forward sale price at the end of the reporting period).

For the three and six months ended June 30, 2026 and 2025, basic and diluted EPS for Con Edison are calculated as follows:

			For the Three Months Ended June 30,						For the Six Months Ended June 30,
(Millions of Dollars, except per share amounts/Shares in Millions)			2026			2025			2026			2025
Net income for common stock			$308			$246			$1,232			$1,038
Weighted average common shares outstanding – basic			368.8			360.4			365.6			354.5
Add: Incremental shares attributable to effect of potentially dilutive securities			1.2			1.3			1.2			1.3
Adjusted weighted average common shares outstanding – diluted			370.0			361.7			366.8			355.8
Net Income per common share – basic			$0.83			$0.68			$3.37			$2.93
Net Income per common share – diluted			$0.83			$0.68			$3.36			$2.92

The computation of diluted EPS for the three and six months ended June 30, 2026 excluded an immaterial amount of performance share awards because of their anti-dilutive effect.

Reconciliation of Cash, Temporary Cash Investments and Restricted Cash

Cash, temporary cash investments and restricted cash are presented on a combined basis in the Companies’ consolidated statements of cash flows. At June 30, 2026 and 2025, Con Edison and CECONY did not have material restricted cash balances.

Variable Interest Entities

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

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

CECONY has an ongoing long-term electricity purchase agreement with Brooklyn Navy Yard Cogeneration Partners, LP, a potential VIE. In 2025, a request was made of this counterparty for information necessary to determine whether the entity was a VIE and whether CECONY is the primary beneficiary; however, the information was not made available. The payments for this contract constitute CECONY’s maximum exposure to loss with respect to the potential VIE.

Note B – Regulatory Matters

Rate Plans

CECONY – Steam

In November 2025, CECONY filed a request with the NYSPSC for a steam rate increase of $66 million, effective November 1, 2026. The filing reflects a return on common equity of 9.9 percent and a common equity ratio of 48 percent. The filing includes supplemental information regarding steam rate plans for November 2027 through October 2028, and November 2028 through October 2029, which the company is not requesting but would consider through settlement discussions. For purposes of illustration, rate increases of $50 million and $50 million effective November 2027 and 2028, respectively, were calculated based on an assumed return on common equity of 9.9 percent and a common equity ratio of 48 percent.

In March 2026, the New York State Department of Public Service (NYSDPS) submitted testimony in the pending steam rate case proceeding supporting a steam rate increase of $18 million, reflecting, among other things, a 9.3 percent return on common equity and a common equity ratio of 47.5 percent.

RECO

In June 2026, the New Jersey Board of Public Utilities (NJBPU) approved an electric rate increase, effective July 1, 2026, of $15.25 million and a 9.6 percent return on equity for RECO. In addition, RECO provided a company-funded bill credit for residential customers of $0.5 million in July 2026. The following table contains a summary of the terms of the distribution rate plan.

RECO
Effective period															July 2026
Base rate changes															$15.25 million
Amortization to income of net regulatory (assets) and liabilities															$8.7 million net assets over three years including $8.1 million of deferred storm costs. $6.2 million over ten years for deferred costs associated with the electric vehicle program
Recoverable energy costs															Current rate recovery of purchased power costs.
Cost reconciliations															Reconciliation of uncollectible accounts, Demand Side Management and Clean Energy Program, Storm Costs Reconciliation (a)
Average rate base															$330.3 million
Weighted average cost of capital (after-tax)															7.14 percent
Authorized return on common equity															9.6 percent
Cost of long-term debt															4.82 percent
Common equity ratio															48.51 percent

(a) The rate plan stipulation includes a base rate allowance of $2.7 million annually ($1.4 million for the last six months of 2026) for routine storm and weather-related expenses that do not qualify as major event storm costs. RECO is responsible for non-major storm costs above the base allowance up to an additional $1.3 million annually, after which excess costs may be deferred until the next base rate case. Storm costs associated with a major storm event may be deferred if incremental costs are $0.8 million or greater.

In June 2026, as part of New Jersey State’s Fiscal Year 2027 Budget, the state allocated $10.68 million to provide bill credits to eligible residential customers of RECO.

Also in June 2026, the NJBPU issued orders that established a residential universal bill credit and a residential energy assistance credit, in an aggregate amount of approximately $2 million for qualified customers of RECO to be funded by New Jersey.

Other Regulatory Matters

In July 2026, the NYSPSC ordered New York utilities, including CECONY and O&R, to show cause why the NYSPSC should not commence a prudence review and an administrative penalty proceeding related to electric vehicle make‑ready program data collection and reporting deficiencies. The Utilities are unable to estimate the amount or range of possible loss related to this matter.

In May 2026, a woman died after falling into a manhole with a dislodged cover in Midtown Manhattan. A lawsuit has been filed against CECONY seeking unspecified compensatory and punitive damages under multiple causes of action. CECONY has provided information to the NYSDPS and has notified its insurers of the incident and lawsuit. CECONY believes that its applicable insurance policies will satisfy any liability it may have in connection with the lawsuit, to the extent such liability exceeds the required self-retention amount, which amount is not material. CECONY is unable to estimate the amount or range of loss and cannot predict whether any other legal or regulatory actions may arise concerning this matter.

In January 2023, CECONY initiated a review of welds on certain gas and steam mains following the company’s discovery of a leak from a gas main weld in Queens, New York. During the course of its review thus far, CECONY discovered non-conforming gas and steam main welds. The non-conforming welds are not expected to have a significant impact on operations. New York regulations require utilities to perform and record weld films for certain gas and steam main welds. Upon reviewing these films, CECONY determined that in some instances third-party contractors engaged in misconduct by substituting duplicate weld films for different welds, while another third-party contractor had created poor quality weld films. CECONY voluntarily disclosed its initial review and findings to the NYSDPS which, in turn, initiated its own investigation into CECONY’s compliance with weld requirements under the New York State Public Service Law and the prudence of CECONY’s oversight of the weld testing process that could result in adverse regulatory action against the company. CECONY continues to investigate this matter, is remediating and monitoring non-conforming welds and continues to cooperate with the NYSDPS in its investigation. During the time period CECONY disclosed the issue to the NYSDPS, it also reported the contractors’ misconduct to law enforcement. In August 2025, two employees of the third-party contractors were indicted in the U.S. District Court for the Southern District of New York for wire fraud arising out of their scheme to defraud CECONY. Given the nature of the non-conforming welds identified, CECONY does not anticipate significant impact to the operation of its gas and steam mains. CECONY's authorized gas rate plan for the three-year period January 2026 through December 2028 provides that $33.3 million in annual gas revenue requirement ($100 million in aggregate from 2026 through 2028) will be recovered through a rate adjustment mechanism that is subject to refund to customers relating to this matter. NYSDPS’ testimony in the pending steam rate case recommended that recovery of $0.5 million of CECONY's steam revenue requirement through the rate adjustment mechanism be subject to refund for the welds matter. CECONY is unable to estimate the amount or range of its possible loss related to this matter.

In January 2018, the NYSPSC issued an order initiating a focused operations audit of the Utilities’ financial accounting for income taxes. The audit is investigating the Utilities’ inadvertent understatement of a portion, the amount of which may be material, of their calculation of total federal income tax expense for ratemaking purposes related to the calculation of plant retirement-related cost of removal. As a result of such understatement, the Utilities accumulated significant income tax regulatory assets ($1,016 million and $7 million for CECONY and O&R, respectively, as of June 30, 2026 and $1,049 million and $10 million for CECONY and O&R, respectively, as of December 31, 2025) which are not earning a return. While the Utilities have properly calculated and paid their federal income taxes and there is no uncertain tax position related to this matter, this understatement of historical income tax expense materially reduced the amount of revenue collected from the Utilities' customers in the past relative to what it should have been. The Utilities’ rate plans have reflected the correct amount of federal income taxes recoverable from customers, including a proportionate recovery of the regulatory asset, beginning with O&R’s rate plans effective November 2015, CECONY’s electric and gas rate plans effective January 2017, and CECONY’s steam plan effective November 2023. As part of the audit, the Utilities plan to pursue a private letter ruling from the Internal Revenue Service (IRS) confirming that the Utilities’ inadvertent understatement of prior years’ income tax expense constitutes a normalization violation that can be cured through an increase in future years’ revenue requirements until such time as the regulatory asset is fully recovered in rates, and not through a write-down of all or a portion of the Utilities’ regulatory asset. Under Accounting Standards Codification Topic (ASC) 740, the Utilities recorded an unfunded deferred federal income tax liability (with a gross-up amount) and a corresponding regulatory asset. The income tax regulatory assets are netted against the related regulatory liability for future income tax and are shown in the line “Future income tax” in the following table of Regulatory Assets and Liabilities and on the Companies’ consolidated balance sheets in the line “Regulatory liabilities.” Management’s assessment is that the income tax regulatory assets as of June 30, 2026 are probable of collection through future rates. The IRS provides safe harbor relief for inadvertent normalization violations through the jurisdictional rate setting process of including in rates adequate revenue to fully recover the deferred tax balance. However, the Utilities would record a liability or impair a portion of the regulatory assets associated with this understatement if the NYSPSC were to issue an order that required the Utilities to write off all or a portion of their existing regulatory asset. The Utilities are unable to estimate the amount or range of their possible loss related to this matter. At June 30, 2026, the Utilities had not accrued a liability related to this matter.

Regulatory Assets and Liabilities

Regulatory assets and liabilities at June 30, 2026 and December 31, 2025 were comprised of the following items:

			Con Edison									CECONY
(Millions of Dollars)			2026			2025						2026			2025
Regulatory assets
Energy efficiency and other clean energy programs (a)			$2,095			$1,994						$1,982			$1,893
Environmental investigation and remediation costs			1,079			1,079						988			987
Customer account deferrals (b)			997			1,089						993			1,084
Revenue taxes			680			638						650			611
Legacy meters			372			382						360			370
Property tax reconciliation (c)			121			101						111			97
Deferred storm costs (d)			78			85						12			1
Deferred derivative losses-long-term			24			18						23			15
Pension and other postretirement employee benefits deferrals			18			—						—			—
Unrecognized pension and other postretirement costs (f)			7			4						—			—
Other			210			209						175			177
Regulatory assets - noncurrent			5,681			5,599						5,294			5,235
Recoverable energy cost			184			6						184			5
Deferred derivative losses - short term			87			97						80			90
Regulatory assets - current			271			103						264			95
Total Regulatory Assets			$5,952			$5,702						$5,558			$5,330
Regulatory liabilities
Allowance for cost of removal less salvage (e)			$1,747			$1,686						$1,523			$1,468
Future income tax*			1,093			1,120						982			1,015
Unrecognized other postretirement benefit cost (f)			781			873						716			806
Pension and other postretirement employee benefit deferrals			252			356						201			313
Net unbilled revenue deferrals			232			397						232			397
Late payment charge deferral			100			192						100			191
Deferred derivative gains – long term			142			119						132			109
System benefit charge carrying charge			103			108						95			100
Storm reserve passback			64			80						64			80
Settlement of prudence proceeding (g)			7			8						7			8
Other			603			435						555			392
Regulatory liabilities - noncurrent			5,124			5,374						4,607			4,879
Deferred derivative gains			296			165						275			152
Revenue decoupling mechanism liabilities			189			13						163			—
Refundable energy costs current			49			71						5			53
Regulatory liabilities - current			534			249						443			205
Total Regulatory Liabilities			$5,658			$5,623						$5,050			$5,084

• See "Other Regulatory Matters" above.

(a) Energy Efficiency and Other Clean Energy Programs represent programs designed to increase energy efficiency achievements and other clean energy transformation efforts.

(b) Customer account deferrals include (1) deferrals under CECONY and O&R's electric and gas rate plans for the reconciliation of write-offs of customer accounts receivable balances to amounts reflected in rates as well as for increases to the allowance for uncollectible accounts receivable and (2) deferral related to the arrears relief programs. Amounts deferred under the arrears relief programs were $227.7 million and immaterial for CECONY and O&R at June 30, 2026, respectively, and $262.9 million and $0.8 million at December 31, 2025, respectively, and receive a return at the pre-tax weighted average cost of capital. The recovery period for the CECONY arrears relief programs will end in 2033.

(c) Property tax reconciliation represents the amount deferred between actual property taxes incurred and the level included in rates subject to the provisions of the respective rate plans.

(d) Deferred storm costs represent response and restoration costs, other than capital expenditures, in connection with major storms that were deferred by the Utilities.

(e) Allowance for cost of removal less salvage represents cash previously collected from customers to fund future anticipated removal expenditures.

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

(g) Settlement of prudence proceeding represents the remaining amount to be credited to customers pursuant to a Joint Proposal, approved by the NYSPSC in April 2016, with respect to the prudence of certain CECONY expenditures and related matters.

In general, the Utilities receive or are being credited with a return at the Other Customer-Provided Capital rate for regulatory assets that have not been included in rate base, and receive or are being credited with a return at the pre-tax weighted average cost of capital once the asset is included in rate base. Similarly, the Utilities pay to or credit customers with a return at the Other Customer-Provided Capital rate for regulatory liabilities that have not been included in rate base, and pay to or credit customers with a return at the pre-tax weighted average cost of capital once the liability is included in rate base. The Other Customer-Provided Capital rate was 4.70 percent and 4.75 percent for the 2026 and 2025 rate years, respectively.

In general, the Utilities are receiving or being credited with a return on their regulatory assets for which a cash outflow has been made ($3,662 million and $3,421 million for Con Edison, and $3,418 million and $3,193 million for CECONY at June 30, 2026 and December 31, 2025, respectively). Regulatory liabilities are treated in a consistent manner. Regulatory assets of RECO for which a cash outflow has been made ($46 million at June 30, 2026 and $41 million at December 31, 2025) are not receiving or being credited with a return. RECO recovers regulatory assets over a period of up to four years or until they are addressed in its next base rate case in accordance with the rate provisions approved by the NJBPU. Regulatory liabilities are treated in a consistent manner.

Regulatory assets that represent future financial obligations and were deferred in accordance with the Utilities’ rate plans or orders issued by state regulators do not earn a return until such time as a cash outlay has been made. Regulatory liabilities are treated in a consistent manner. At June 30, 2026 and December 31, 2025, regulatory assets for Con Edison and CECONY that did not earn a return consisted of the following items:

Regulatory Assets Not Earning a Return*

			Con Edison						CECONY
(Millions of Dollars)			2026			2025			2026			2025
Environmental investigation and remediation costs			$1,071			$1,072			$980			$980
Revenue taxes			651			621			623			595
Deferral for uncollectible accounts receivable			381			427			378			426
Deferred derivative losses - short-term			87			97			80			90
Deferred derivative losses - long-term			24			18			23			15
Unrecognized pension and other postretirement costs			7			4			—			—
Other			69			42			56			31
Total			$2,290			$2,281			$2,140			$2,137

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

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

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

The Utilities recover deferred derivative losses – short-term within one year, and long-term generally within three years.

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

Note C – Capitalization

In May 2026, Con Edison entered into an equity distribution agreement (EDA), pursuant to which Con Edison may sell, from time to time, up to an aggregate sales price of $2.0 billion of its common stock through an at-the-market

(ATM) equity offering program (ATM Program), including an equity forward sales component. Con Edison subsequently entered into forward sale agreements under the ATM Program and as of June 30, 2026, the ATM Program had approximately $1.8 billion of common stock available for issuance.

The following table shows ATM equity issuances pursuant to forward sale agreements executed in May 2026.

Tranche			Shares Priced			Initial Forward Price
1			1,074,178 (a)			$105.7586
2			889,415			$104.6730

(a) In June 2026, Con Edison physically settled a portion of Tranche 1, as described below.

The forward sale agreements require Con Edison to either physically settle the transactions by issuing shares in exchange for net proceeds at the then-applicable forward sale price specified by the forward sale agreements or net settle in whole or in part through the delivery or receipt of cash or shares. The settlement alternatives are at Con Edison’s election and Con Edison expects to fully physically settle each forward sale agreement. Except for amounts recorded upon settlement of forward sale agreements that have settled, no amounts have been or will be recorded in Con Edison’s Consolidated Financial Statements with respect to the offerings under the ATM Program prior to settlement of the applicable forward sale agreements. The initial forward sale prices will be subject to adjustment on a daily basis based on a floating interest rate factor and will be subject to decrease on each of certain dates by amounts related to expected dividends on Con Edison's common stock during the term of the relevant forward sale agreements. Until settlement of the equity forwards, earnings per share dilution resulting from the forward sale agreements will be determined under the treasury stock method. The forward sale agreements have been classified as equity transactions.

In June 2026, Con Edison physically settled a portion of outstanding equity forwards under the ATM Program by delivering 1,018,307 shares of its common stock in exchange for total net cash proceeds of approximately $108 million.

In March 2026, Con Edison issued 7,000,000 shares of its common stock for approximately $776 million upon physical settlement of a forward sale agreement entered into by the company in February 2026.

In June 2026, CECONY issued $450 million aggregate principal amount of 5.15 percent debentures, due 2036 and $850 million aggregate principal amount of 5.875 percent debentures, due 2056.

The carrying amounts and fair values of long-term debt at June 30, 2026 and December 31, 2025 were:

(Millions of Dollars)			2026												2025
Long-Term Debt (including current portion) (a)			Carrying Amount						Fair Value						Carrying Amount						Fair Value
Con Edison			$27,093						$24,595						$25,801						$23,633
CECONY			$25,601						$23,273						$24,310						$22,291

(a)Amounts shown are net of unamortized debt expense and unamortized debt discount of $257 million and $249 million for Con Edison and CECONY, respectively, as of June 30, 2026 and $249 million and $240 million for Con Edison and CECONY, respectively, as of December 31, 2025.

The fair values of the Companies' long-term debt have been estimated primarily using available market information and at June 30, 2026 are classified as Level 2 liabilities. See Note O.

Note D – Short-Term Borrowing

In March 2026, Con Edison and the Utilities entered into a Credit Agreement (the Credit Agreement) that replaced a March 2023 Credit Agreement and a March 2025 CECONY 364-Day Revolving Credit Agreement under which banks are committed to provide loans and letters of credit, on a revolving credit basis. The Credit Agreement expires in March 2031, unless extended for up to two additional one-year terms. There is a maximum of $3,500 million of credit available. The full amount is available to CECONY and $800 million (subject to increase up to $1,000 million) is available to Con Edison, including up to $900 million of letters of credit. The Companies intend to use the Credit Agreement to support their commercial paper programs. Loans and letters of credit issued under the Credit Agreement may also be used for other general corporate purposes. Any borrowings under the Credit Agreement would generally be at variable interest rates. Interest and fees for loans and letters of credit under the Credit Agreement generally reflect the respective credit ratings of the Companies.

The banks’ commitments under the Credit Agreement are subject to certain conditions, including that there be no event of default or event which with notice or the lapse of time would become an event of default with respect to any company. The commitments are not subject to maintenance of credit rating levels or the absence of a material adverse change. Upon a change of control of, or upon an event of default by one of the companies, the banks may terminate their commitments with respect to that company, declare any amounts owed by that company immediately due and payable and require that company to provide cash collateral relating to the letters of credit issued for it under the Credit Agreement. Events of default for a company include, among other things, that company's failure to pay any principal of any loan or any draw under any letter of credit issued pursuant to the Credit Agreement when due; that company's failure to pay any interest or fees pursuant to the Credit Agreement within five days; that company's failure to meet certain covenants, including covenants that the company's ratio of consolidated debt to consolidated total capital not at any time exceed 0.65 to 1; the company creating, assuming or suffering a lien or other encumbrance on its assets exceeding 10 percent of that company's consolidated net tangible assets; that company failing to make one or more payments in respect of material financial obligations (in excess of $150 million in aggregate); the occurrence of an event or condition which results in the acceleration of the maturity of any material debt (in excess of $150 million in aggregate); and other customary events of default. At June 30, 2026 no loans or letters of credit were outstanding under the Credit Agreement, the March 2023 Credit Agreement or the March 2025 CECONY 364-Day Revolving Credit Agreement. The Companies were in compliance with their significant debt covenants at June 30, 2026.

In March 2026, CECONY repaid in full prior to maturity $500 million pursuant to a 364-Day Senior Unsecured Term Loan Agreement entered into by the company in November 2025.

At June 30, 2026, Con Edison had $721 million of commercial paper outstanding, of which $480 million of commercial paper was outstanding under CECONY’s program. The weighted average interest rate at June 30, 2026 was 3.9 percent for both Con Edison and CECONY. At December 31, 2025, Con Edison had $1,575 million of commercial paper outstanding, of which $1,240 million was outstanding under CECONY’s program. The weighted average interest rate at December 31, 2025 was 3.9 percent for both Con Edison and CECONY.

Note E – Pension Benefits

Total Periodic Benefit Credit

The components of the Companies’ total periodic benefit credit for the three and six months ended June 30, 2026 and 2025 were as follows:

			For the Three Months Ended June 30,
			Con Edison						CECONY
(Millions of Dollars)			2026			2025			2026			2025
Service cost – including administrative expenses			$45			$42			$43			$40
Interest cost on projected benefit obligation			167			170			157			159
Expected return on plan assets			(261)			(279)			(251)			(267)
Recognition of net actuarial gain			(22)			(67)			(21)			(63)
Recognition of prior service credit			(5)			(5)			(5)			(5)
TOTAL PERIODIC BENEFIT CREDIT			$(76)			$(139)			$(77)			$(136)
Cost capitalized			(28)			(24)			(26)			(22)
Reconciliation to rate level			(38)			(13)			(38)			(14)
Total credit recognized			$(142)			$(176)			$(141)			$(172)

			For the Six Months Ended June 30,
			Con Edison						CECONY
(Millions of Dollars)			2026			2025			2026			2025
Service cost – including administrative expenses			$90			$84			$86			$79
Interest cost on projected benefit obligation			334			338			315			318
Expected return on plan assets			(523)			(558)			(502)			(533)
Recognition of net actuarial gain			(44)			(133)			(43)			(126)
Recognition of prior service credit			(9)			(9)			(10)			(10)
TOTAL PERIODIC BENEFIT CREDIT			$(152)			$(278)			$(154)			$(272)
Cost capitalized			(54)			(45)			(51)			(42)
Reconciliation to rate level			(79)			(29)			(78)			(30)
Total credit recognized			$(285)			$(352)			$(283)			$(344)

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

Expected Contributions

Based on estimates as of June 30, 2026, the Companies expect to make contributions to the pension plans during 2026 of $58 million (of which $52 million is to be made by CECONY). The Companies’ policy is to fund the total periodic benefit cost of the qualified plan to the extent tax deductible and to also contribute to the non-qualified supplemental pension plans. An immaterial amount of funding is anticipated for the qualified plan during 2026, and during the first six months of 2026, the Companies contributed $12 million to the non-qualified supplemental pension plans, $11 million of which was contributed by CECONY. CECONY also contributed $4 million to the external trust for its non-qualified supplemental plan.

Note F – Other Postretirement Benefits

Total Periodic Benefit Credit

The components of the Companies’ total periodic other postretirement benefit credit for the three and six months ended June 30, 2026 and 2025 were as follows:

			For the Three Months Ended June 30,
			Con Edison						CECONY
(Millions of Dollars)			2026			2025			2026			2025
Service cost - including administrative expenses			$3			$3			$2			$2
Interest cost on projected other postretirement benefit obligation			12			12			10			10
Expected return on plan assets			(16)			(17)			(13)			(13)
Recognition of net actuarial gain			(2)			(7)			—			(4)
Recognition of prior service credit			(1)			—			—			—
TOTAL PERIODIC OTHER POSTRETIREMENT CREDIT			$(4)			$(9)			$(1)			$(5)
Cost capitalized			(2)			(2)			(1)			(1)
Reconciliation to rate level			3			4			2			2
Total credit recognized			$(3)			$(7)			$—			$(4)

			For the Six Months Ended June 30,
			Con Edison						CECONY
(Millions of Dollars)			2026			2025			2026			2025
Service cost - including administrative expenses			$6			$6			$4			$5
Interest cost on projected other postretirement benefit obligation			23			24			20			21
Expected return on plan assets			(32)			(34)			(25)			(27)
Recognition of net actuarial gain			(4)			(13)			—			(9)
Recognition of prior service credit			(1)			(1)			—			—
TOTAL PERIODIC OTHER POSTRETIREMENT CREDIT			$(8)			$(18)			$(1)			$(10)
Cost capitalized			(3)			(3)			(2)			(2)
Reconciliation to rate level			5			6			3			4
Total credit recognized			$(6)			$(15)			$—			$(8)

The components of total periodic other postretirement credit are presented in the Companies' consolidated income statements consistent with the description of the components of net periodic benefit credit in Note E.

Expected Contributions

Based on estimates as of June 30, 2026, the Companies expect to make a contribution of $5 million (all of which is expected to be contributed by CECONY) to the other postretirement benefit plans in 2026. The Companies’ policy is to fund the total periodic benefit cost of the plans to the extent tax deductible.

Note G – Environmental Matters

Superfund Sites

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

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

For Superfund Sites where there are other potentially responsible parties and the Utilities are not managing the site investigation and remediation, the accrued liability represents an estimate of the amount the Utilities will need to pay to investigate and, where determinable, discharge their related obligations. For Superfund Sites (including the manufactured gas plant sites) for which one of the Utilities is managing the investigation and remediation, the accrued liability represents an estimate of the company's share of the undiscounted cost to investigate the sites and, for sites that have been investigated in whole or in part, the cost to remediate the sites, if remediation is necessary and if a reasonable estimate of such cost can be made. Remediation costs are estimated in light of the information available, applicable remediation standards and experience with similar sites.

The accrued liabilities and regulatory assets related to Superfund Sites at June 30, 2026 and December 31, 2025 were as follows:

			Con Edison						CECONY
(Millions of Dollars)			2026			2025			2026			2025
Accrued Liabilities:
Manufactured gas plant sites			$976			$980			$879			$882
Other Superfund Sites			102			99			101			98
Total			$1,078			$1,079			$980			$980
Regulatory assets			$1,079			$1,079			$988			$987

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

Environmental remediation costs incurred related to Superfund Sites for the three and six months ended June 30, 2026 and 2025 were as follows:

			For the Three Months Ended June 30,
			Con Edison						CECONY
(Millions of Dollars)			2026			2025			2026			2025
Remediation costs incurred			$3			$5			$3			$4

			For the Six Months Ended June 30,
			Con Edison						CECONY
(Millions of Dollars)			2026			2025			2026			2025
Remediation costs incurred			$6			$14			$6			$13

Insurance and other third-party recoveries received by Con Edison or CECONY were immaterial for the three and six months ended June 30, 2026 and 2025.

Con Edison and CECONY estimated that for their manufactured gas plant sites (including CECONY’s Astoria site), the aggregate undiscounted potential liability for the investigation and remediation of coal tar and/or other environmental contaminants could range up to $3,540 million and $3,380 million, respectively. These estimates were based on the assumption that there is contamination at all sites, including those that have not yet been fully investigated and additional assumptions about the extent of the contamination and the type and extent of the remediation that may be required. Actual experience may be materially different.

Asbestos Proceedings

Suits have been brought in New York State and federal courts against the Utilities and many other defendants, wherein a large number of plaintiffs sought significant compensatory and punitive damages for deaths and injuries allegedly caused by or relating to exposure to asbestos and asbestos-containing materials at various premises of the Utilities. The suits that have been resolved, that are many, have been resolved without any payment by the Utilities, or for amounts that were not, in the aggregate, material to them. The amounts specified in all the remaining thousands of suits total billions of dollars; however, the Utilities believe that these amounts are greatly exaggerated, based on the disposition of previous claims. At June 30, 2026 and December 31, 2025, Con Edison and CECONY have accrued their estimated aggregate undiscounted potential liabilities for these suits and additional suits that may be brought through 2040 as shown in the following table. These estimates were based upon a combination of modeling, historical data analysis and risk factor assessment. Courts have modified, and may continue to modify, standards for determining liability and the reasonableness of awards in asbestos suits. As a result, the Companies currently believe that there is a reasonable possibility of an exposure to loss in excess of the liability accrued for the suits. The Companies are unable to estimate the amount or range of such loss. In addition, certain current and former employees have claimed or are claiming workers’ compensation benefits based on alleged disability from exposure to asbestos. CECONY is permitted to defer as regulatory assets (for subsequent recovery through rates) costs incurred for its asbestos lawsuits and workers’ compensation claims.

The accrued liability for asbestos suits and workers’ compensation proceedings (including those related to asbestos exposure) and the amounts deferred as regulatory assets or liabilities for the Companies at June 30, 2026 and December 31, 2025 were as follows:

			Con Edison						CECONY
(Millions of Dollars)			2026			2025			2026			2025
Accrued liability – asbestos suits			$11			$11			$10			$10
Regulatory assets – asbestos suits			11			11			10			10
Accrued liability – workers’ compensation			$50			$51			$48			$49
Regulatory liabilities – workers’ compensation			23			21			23			21

Note H – Material Contingencies

Manhattan Explosion and Fire

On March 12, 2014, two multi-use five-story tall buildings located on Park Avenue between 116th and 117th Streets in Manhattan were destroyed by an explosion and fire. CECONY had delivered gas to the buildings through service lines from a distribution main located below ground on Park Avenue. Eight people died and more than 50 people were injured. Additional buildings were also damaged. The National Transportation Safety Board (NTSB) investigated. The parties to the investigation included CECONY, the City of New York, the Pipeline and Hazardous Materials Safety Administration and the NYSPSC. In June 2015, the NTSB issued a final report concerning the incident, its probable cause and safety recommendations. The NTSB determined that the probable cause of the incident was (1) the failure of a defective fusion joint at a service tee (which joined a plastic service line to a plastic distribution main) installed by CECONY that allowed gas to leak from the distribution main and migrate into a building where it ignited and (2) a breach in a city sewer line that allowed groundwater and soil to flow into the sewer, resulting in a loss of support for the distribution main, that caused it to sag and overstressed the defective fusion joint. The NTSB also made safety recommendations, including recommendations to CECONY that addressed its procedures for the preparation and examination of plastic fusions, training of its staff on conditions for notifications to the city’s Fire Department and extension of its gas main isolation valve installation program. In February 2017, the NYSPSC approved a settlement agreement with CECONY related to the NYSPSC's investigations of the incident and the practices of qualifying persons to perform plastic fusions. Pursuant to the agreement, CECONY provided $27 million of future benefits to customers (for which it accrued a regulatory liability) and did not recover from customers $126 million of costs for gas emergency response activities that it had previously incurred and expensed. Lawsuits are pending against CECONY seeking generally unspecified damages and, in some cases, punitive damages, for wrongful death, personal injury, property damage and business interruption. CECONY notified its insurers of the incident and believes that the policies in force at the time of the incident will cover CECONY’s costs, in excess of a required retention (the amount of which is not material), to satisfy any liability it may have for damages in connection with the incident. During 2020, CECONY accrued its estimated liability for the suits of $40 million. As of June 30, 2026, the estimated accrued liability is $25 million, with an insurance receivable in the same amount, due to the settlement or dismissal of multiple litigations that arose from the incident.

Other Contingencies

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

Guarantees

Con Edison has entered into various agreements providing financial or performance assurance primarily to third parties on behalf of their subsidiaries. Maximum amounts guaranteed by Con Edison under these agreements were immaterial and $60 million at June 30, 2026 and December 31, 2025, respectively.

Note I – Leases

Operating lease cost and cash paid for amounts included in the measurement of lease liabilities for the three and six months ended June 30, 2026 and 2025 were as follows:

			For the Three Months Ended June 30,
			Con Edison						CECONY
(Millions of Dollars)			2026			2025			2026			2025
Operating lease cost			$18			$17			$18			$17
Operating lease cash flows			$5			$4			$5			$4

			For the Six Months Ended June 30,
			Con Edison						CECONY
(Millions of Dollars)			2026			2025			2026			2025
Operating lease cost			$36			$34			$36			$34
Operating lease cash flows			$11			$9			$10			$8

As of June 30, 2026, CECONY has lease agreements for clean energy facilities that have not yet commenced operation, for which the total present value is $446 million. These clean energy facility leases have lease terms of 15 years and are expected to commence operation within three years.

Right-of-use assets obtained in exchange for operating lease obligations for Con Edison and CECONY were immaterial for the three and six months ended June 30, 2026. Additionally, there were $7 million of lease terminations for the three and six months ended June 30, 2026. For the three and six months ended June 30, 2025, right-of-use assets obtained in exchange for operating lease obligations for Con Edison and CECONY were immaterial and $8 million, respectively. Additionally, there were no material lease terminations for the three and six months ended June 30, 2025.

Note J – Income Tax

Con Edison’s income tax expense was $100 million and $50 million for the three months ended June 30, 2026 and 2025, respectively.

CECONY’s income tax expense was $98 million and $48 million for the three months ended June 30, 2026 and 2025, respectively.

Reconciliation of the difference between income tax expense and the amount computed by applying the prevailing statutory income tax rate to income before income taxes for the three months ended June 30, 2026 and 2025 is as follows:

			For the Three Months Ended June 30,
			Con Edison												CECONY
			2026						2025						2026						2025
(Millions of Dollars) (% of Pre-tax income)			$			%			$			%			$			%			$			%
U.S. Federal Statutory Tax Rate (a)			$86			21.0		%	$62			21.0		%	$83			21.0		%	$57			21.0		%
State Income Taxes:
State income taxes, net of federal income taxes (b)			21			5.3			13			4.6			20			5.1			14			5.1
MTA Surcharge (Surcredit) amortization, net of federal income taxes			1			0.4			(7)			(2.5)			1			0.4			(7)			(2.6)
Tax Credits			(3)			(0.8)			(5)			(1.8)			(2)			(0.6)			(3)			(1.2)
Nontaxable or Nondeductible items			(1)			(0.1)			(2)			(0.8)			—			—			(3)			(0.9)
Changes in unrecognized tax benefits			—			—			1			0.3			—			—			1			0.3
Other Adjustments:
Amortization of excess deferred federal income taxes			(16)			(4.0)			(11)			(3.7)			(15)			(3.7)			(9)			(3.3)
Allowance for uncollectible accounts, net of regulatory recovery			(1)			(0.3)			(9)			(2.9)			(1)			(0.3)			(9)			(3.3)
Cost of removal			12			2.9			9			3.0			11			2.7			8			3.0
Other			1			0.3			(1)			(0.3)			1			0.3			(1)			(0.3)
Effective tax rate			$100			24.7		%	$50			16.9		%	$98			24.9		%	$48			17.8		%

(a) Income before income tax expense is attributable to domestic operations.

(b) State income taxes in New York account for the majority of the tax effect in this category.

Con Edison's income tax expense was $403 million and $292 million for the six months ended June 30, 2026 and 2025, respectively.

CECONY’s income tax expense was $329 million and $275 million for the six months ended June 30, 2026 and 2025, respectively.

Reconciliation of the difference between income tax expense and the amount computed by applying the prevailing statutory income tax rate to income before income taxes for the six months ended June 30, 2026 and 2025 is as follows:

			For the Six Months Ended June 30,
			Con Edison												CECONY
			2026						2025						2026						2025
(Millions of Dollars) (% of Pre-tax income)			$			%			$			%			$			%			$			%
U.S. Federal Statutory Tax Rate (a)			$343			21.0		%	$279			21.0		%	$285			21.0		%	$261			21.0		%
State Income Taxes:
State income taxes, net of federal income taxes (b)			86			5.2			69			5.2			71			5.2			65			5.2
MTA Surcredit amortization, net of federal income taxes			(9)			(0.5)			(21)			(1.6)			(8)			(0.6)			(20)			(1.6)
Tax Credits			(7)			(0.4)			(9)			(0.6)			(5)			(0.4)			(7)			(0.5)
Nontaxable or Nondeductible items			(1)			(0.1)			(4)			(0.3)			—			—			(4)			(0.3)
Changes in unrecognized tax benefits			1			0.1			2			0.1			1			0.1			2			0.1
Other Adjustments:
Amortization of excess deferred federal income taxes			(33)			(2.0)			(22)			(1.7)			(29)			(2.1)			(18)			(1.5)
Allowance for uncollectible accounts, net of regulatory recovery			(7)			(0.4)			(21)			(1.6)			(7)			(0.5)			(22)			(1.7)
Cost of removal			25			1.5			19			1.5			23			1.7			18			1.5
Other			5			0.3			—			—			(2)			(0.2)			—			—
Effective tax rate			$403			24.7		%	$292			22.0		%	$329			24.2		%	$275			22.2		%

(a) Income before income tax expense is attributable to domestic operations.

(b) State income taxes in New York account for the majority of the tax effect in this category.

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 and expanding certain incentives under the federal Inflation Reduction Act (IRA), as enacted on August 16, 2022 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 have not had, and are not expected to have, a material impact on the Companies’ financial position, results of operations or liquidity.

Corporate Alternative Minimum Tax

On August 16, 2022, the 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 June 30, 2026, Con Edison accrued a CAMT liability of $72 million ($68 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.

On February 18, 2026, the Internal Revenue Service and the Department of Treasury issued Notice 2026-7, which 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 six months ended June 30, 2026, Con Edison reduced its CAMT credit 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. 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. In May 2026, 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 2029 and extended the business capital tax through tax year 2029. Con Edison does not expect to be subject to the higher tax rate of 7.25 percent in 2026.

Uncertain Tax Positions

Under the accounting rules for income taxes, the Companies are not permitted to recognize the tax benefit attributable to a tax position unless such position is more likely than not to be sustained upon examination by taxing authorities, including resolution of any related appeals and litigation processes, based solely on the technical merits of the position.

At June 30, 2026, the estimated uncertain tax positions for Con Edison were $10 million ($6 million of which is for CECONY). For the six months ended June 30, 2026, Con Edison recognized $0.9 million of income tax expense related to current year positions ($0.8 million of which is for CECONY). The total amount of unrecognized tax benefits, if recognized, that would reduce Con Edison’s effective tax rate is $10 million ($9 million, net of federal taxes) with $6 million attributable to CECONY.

The Companies recognize interest on liabilities for uncertain tax positions in interest expense and would recognize penalties, if any, in operating expenses in the Companies’ consolidated income statements. For the six months ended June 30, 2026 and 2025, the Companies recognized an immaterial amount of interest expense and no penalties for uncertain tax positions in their consolidated income statements. At June 30, 2026 and December 31, 2025, the Companies recognized an immaterial amount of accrued interest on their consolidated balance sheets.

Note K – Revenue Recognition

The following table presents, for the three and six months ended June 30, 2026 and 2025, revenue from contracts with customers as defined in ASC Topic 606, "Revenue from Contracts with Customers," as well as additional revenue from sources other than contracts with customers, disaggregated by major source.

			For the Three Months Ended June 30, 2026												For the Three Months Ended June 30, 2025
(Millions of Dollars)			Revenues from contracts with customers						Other revenues (a)			Total operating revenues			Revenues from contracts with customers						Other revenues (a)			Total operating revenues
CECONY
Electric			$3,053						$(119)			$2,934			$2,565						$16			$2,581
Gas			731						22			753			696						(43)			653
Steam			120						(2)			118			107						(1)			106
Total CECONY			$3,904						$(99)			$3,805			$3,368						$(28)			$3,340
O&R
Electric			$204						$1			$205			$196						$—			$196
Gas			58						—			58			64						(6)			58
Total O&R			$262						$1			$263			$260						$(6)			$254
Con Edison Transmission			1						—			1			1						—			1
Other			—						—			—			—						—			—
Total Con Edison			$4,167						$(98)			$4,069			$3,629						$(34)			$3,595

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

			For the Six Months Ended June 30, 2026												For the Six Months Ended June 30, 2025
(Millions of Dollars)			Revenues from contracts with customers						Other revenues (a)			Total operating revenues			Revenues from contracts with customers						Other revenues (a)			Total operating revenues
CECONY
Electric			$5,923						$(231)			$5,692			$5,333						$(66)			$5,267
Gas			2,184						33			2,217			2,095						(40)			2,055
Steam			555						(5)			550			463						(3)			460
Total CECONY			$8,662						$(203)			$8,459			$7,891						$(109)			$7,782
O&R
Electric			$493						$(6)			$487			$414						$(3)			$411
Gas			242						(25)			217			210						(11)			199
Total O&R			$735						$(31)			$704			$624						$(14)			$610
Con Edison Transmission			2						—			2			2						—			2
Other (b)			—						(1)			(1)			—						(1)			(1)
Total Con Edison			$9,399						$(235)			$9,164			$8,517						$(124)			$8,393

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

(b) Other includes the parent company, Con Edison’s tax equity investments, consolidation adjustments and for 2025 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.

Note L – Current Expected Credit Losses

Allowance for Uncollectible Accounts

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

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

The Companies develop expected loss estimates using past events data and consider current conditions and future reasonable and supportable forecasts. Changes to the Utilities’ reserve balances that result in write-offs of customer accounts receivable balances above existing rate allowances are not reflected in rates during the term of the current rate plans. For the Utilities’ allowance for uncollectible accounts for customer accounts receivable, which includes accrued unbilled revenue, past events considered include write-offs relative to customer accounts receivable;

current conditions include macro-and micro-economic conditions related to trends in the local economy, reconnection rates and current and aged customer accounts receivable balances, including final balances, among other factors; and forecasts about the future include assumptions related to the level of write-offs and recoveries. The change to the allowance for customer uncollectible accounts for Con Edison and CECONY was $(10) million for the three months ended June 30, 2026 and $(49) million and $(50) million, respectively, for the six months ended June 30, 2026. The change to the allowance for customer uncollectible accounts for Con Edison and CECONY was $(1) million and no change, respectively, for the three months ended June 30, 2025 and $(5) million and no change, respectively, for the six months ended June 30, 2025. Generally, the Utilities write off customer accounts receivable as uncollectible 90 days after the account is disconnected for non-payment, or the account is closed during the collection process.

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

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

The table below presents a rollforward by major portfolio segment type for the three and six months ended June 30, 2026 and 2025:

			For the Three Months Ended June 30,
			Con Edison												CECONY
			Accounts receivable - customers						Other receivables						Accounts receivable - customers						Other receivables
(Millions of Dollars)			2026			2025			2026			2025			2026			2025			2026			2025
Allowance for credit losses
Beginning Balance at April 1,			$468			$616			$10			$28			$460			$605			$8			$25
Recoveries			18			18			—			—			18			18			—			—
Write-offs			(84)			(120)			—			—			(82)			(118)			—			—
Reserve adjustments			56			101			—			14			54			100			—			10
Ending Balance June 30,			$458			$615			$10			$42			$450			$605			$8			$35

			For the Six Months Ended June 30,
			Con Edison												CECONY
			Accounts receivable - customers						Other receivables						Accounts receivable - customers						Other receivables
(Millions of Dollars)			2026			2025			2026			2025			2026			2025			2026			2025
Allowance for credit losses
Beginning Balance at January 1,			$507			$620			$35			$41			$500			$605			$27			$38
Recoveries			38			23			—			—			37			22			—			—
Write-offs			(195)			(218)			—			(4)			(192)			(213)			—			(4)
Reserve adjustments			108			190			(25)			5			105			191			(19)			1
Ending Balance June 30,			$458			$615			$10			$42			$450			$605			$8			$35

Note M – Financial Information by Business Segment

Con Edison’s principal business segments are CECONY’s regulated utility activities, O&R’s regulated utility activities and Con Edison Transmission. CECONY’s principal business segments are its regulated electric, gas and steam utility activities. The financial data for the business segments as of and for the three and six months ended June 30, 2026 and 2025 were as follows:

			As of and for the Three Months Ended June 30, 2026
			Operating revenues			Inter-segment revenues			Other operations and maintenance (b)			Depreciation and amortization			Other operating expense (b)			Operating income (loss)			Other Income (deductions)			Interest Expense			Allowance for borrowed funds used during construction			Income Tax Expense			Total assets			Capital expenditures
(Millions of Dollars)
CECONY
Electric			$2,934			$5			$610			$392			$1,507			$425			$108			$218			$(13)			$87			$50,354			$1,019
Gas			753			2			142			122			317			172			35			78			(4)			30			18,452			302
Steam			118			21			62			30			84			(58)			6			15			—			(19)			2,481			26
Consolidation adjustments			—			(28)			—			—			—			—			—			—			—			—			—			—
Total CECONY			$3,805			$—			$814			$544			$1,908			$539			$149			$311			$(17)			$98			$71,287			$1,347
O&R
Electric			205			—			75			23			87			20			8			13			(2)			3			3,056			95
Gas			58			—			21			11			30			(4)			2			7			—			(3)			1,541			42
Total O&R			$263			$—			$96			$34			$117			$16			$10			$20			$(2)			$—			$4,597			$137
Con Edison Transmission			1			—			2			—			—			(1)			11			—			—			3			381			15
Other (a)			—			—			1			—			1			(2)			—			2			—			(1)			194			—
Total Con Edison			$4,069			$—			$913			$578			$2,026			$552			$170			$333			$(19)			$100			$76,459			$1,499

(a) Other includes the parent company, Con Edison’s tax equity investments and consolidation adjustments.

(b) Other operations and maintenance expenses constitute significant segment expenses which are regularly provided to the chief operating decision makers. Other operating expense includes other segment items (purchased power, fuel, gas purchased for resale, taxes other than income taxes).

			As of and for the Three Months Ended June 30, 2025
			Operating revenues			Inter-segment revenues			Other operations and maintenance (b)			Depreciation and amortization			Other operating expense (b)			Operating income (loss)			Other Income (deductions)			Interest Expense			Allowance for borrowed funds used during construction			Income Tax Expense			Total assets			Capital expenditures
(Millions of Dollars)
CECONY
Electric			$2,581			$5			$636			$396			$1,237			$312			$159			$212			$(11)			$51			$46,885			$814
Gas			653			2			134			119			314			86			37			75			(5)			11			16,749			314
Steam			106			19			56			29			72			(51)			13			15			—			(14)			2,931			26
Consolidation adjustments			—			(26)			—			—			—			—			—			—			—			—			—			—
Total CECONY			$3,340			$—			$826			$544			$1,623			$347			$209			$302			$(16)			$48			$66,565			$1,154
O&R
Electric			196			—			73			22			85			16			8			11			(2)			3			2,719			64
Gas			58			—			20			9			32			(3)			3			6			—			(2)			1,405			32
Total O&R			$254			$—			$93			$31			$117			$13			$11			$17			$(2)			$1			$4,124			$96
Con Edison Transmission			1			—			4			—			—			(3)			17			—			—			4			490			15
Other (a)			—			—			—			1			1			(2)			4			(1)			—			(3)			322			—
Total Con Edison			$3,595			$—			$923			$576			$1,741			$355			$241			$318			$(18)			$50			$71,501			$1,265

(a) Other includes the parent company, Con Edison’s tax equity investments, and consolidation adjustments.

(b) Other operations and maintenance expenses constitute significant segment expenses which are regularly provided to the chief operating decision makers. Other operating expense includes other segment items (purchased power, fuel, gas purchased for resale, taxes other than income taxes).

			As of and for the Six Months Ended June 30, 2026
			Operating revenues			Inter-segment revenues			Other operations and maintenance (b)			Depreciation and amortization			Other operating expense (b)			Operating income (loss)			Other Income (deductions)			Interest Expense			Allowance for borrowed funds used during construction			Income Tax Expense			Total assets			Capital expenditures
(Millions of Dollars)
CECONY
Electric			$5,692			$10			$1,259			$779			$2,894			$760			$213			$427			$(25)			$147			$50,354			$1,842
Gas			2,217			5			279			244			901			793			67			156			(8)			169			18,452			521
Steam			550			40			120			59			278			93			12			30			—			13			2,481			50
Consolidation adjustments			—			(55)			—			—			—			—			—			—			—			—			—			—
Total CECONY			$8,459			$—			$1,658			$1,082			$4,073			$1,646			$292			$613			$(33)			$329			$71,287			$2,413
O&R
Electric			487			—			146			45			251			45			15			26			(3)			8			3,056			148
Gas			217			—			43			22			105			47			4			14			(1)			8			1,541			63
Total O&R			$704			$—			$189			$67			$356			$92			$19			$40			$(4)			$16			$4,597			$211
Con Edison Transmission			2			—			5			—			—			(3)			26			—			—			62			381			31
Other (a)			(1)			—			(1)			1			4			(5)			1			6			—			(4)			194			—
Total Con Edison			$9,164			$—			$1,851			$1,150			$4,433			$1,730			$338			$659			$(37)			$403			$76,459			$2,655

(a) Other includes the parent company, Con Edison’s tax equity investments and consolidation adjustments.

(b) Other operations and maintenance expenses constitute significant segment expenses which are regularly provided to the chief operating decision makers. Other operating expense includes other segment items (purchased power, fuel, gas purchased for resale, taxes other than income taxes).

			As of and for the Six Months Ended June 30, 2025
			Operating revenues			Inter-segment revenues			Other operations and maintenance (b)			Depreciation and amortization			Other operating expense (b)			Operating income (loss)			Other Income (deductions)			Interest Expense			Allowance for borrowed funds used during construction			Income Tax Expense			Total assets			Capital expenditures
(Millions of Dollars)
CECONY
Electric			$5,267			$10			$1,295			$784			$2,586			$602			$313			$431			$(23)			$88			$46,885			$1,505
Gas			2,055			5			273			237			819			726			69			152			(9)			169			16,749			586
Steam			460			38			112			56			206			86			25			29			(1)			18			2,931			55
Consolidation adjustments			—			(53)			—			—			—			—			—			—			—			—			—			—
Total CECONY			$7,782			$—			$1,680			$1,077			$3,611			$1,414			$407			$612			$(33)			$275			$66,565			$2,146
O&R
Electric			411			—			148			43			187			33			17			22			(3)			6			2,719			122
Gas			199			—			40			19			98			42			6			12			—			8			1,405			59
Total O&R			$610			$—			$188			$62			$285			$75			$23			$34			$(3)			$14			$4,124			$181
Con Edison Transmission			2			—			7			—			—			(5)			33			—			—			8			490			29
Other (a)			(1)			—			—			1			2			(4)			(1)			2			—			(5)			322			—
Total Con Edison			$8,393			$—			$1,875			$1,140			$3,898			$1,480			$462			$648			$(36)			$292			$71,501			$2,356

(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.

(b) Other operations and maintenance expenses constitute significant segment expenses which are regularly provided to the chief operating decision makers. Other operating expense includes other segment items (purchased power, fuel, gas purchased for resale, taxes other than income taxes).

Note N – Derivative Instruments and Hedging Activities

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

The fair values of the Companies’ derivatives, including the offsetting of assets and liabilities on the consolidated balance sheets at June 30, 2026 and December 31, 2025 were:

(Millions of Dollars)			2026												2025
Balance Sheet Location			Gross Amounts of Recognized Assets (Liabilities)			Gross Amounts Offset			Net Amounts of Assets (Liabilities) (a)						Gross Amounts of Recognized Assets (Liabilities)			Gross Amounts Offset			Net Amounts of Assets (Liabilities) (a)
Con Edison
Fair value of derivative assets
Current			$310			$(116)			$194			(b)			$175			$(90)			$85			(b)
Noncurrent			175			(30)			145						149			(23)			126
Total fair value of derivative assets			$485			$(146)			$339						$324			$(113)			$211
Fair value of derivative liabilities
Current			$(62)			$46			$(16)			(b)			$(75)			$45			$(30)			(b)
Noncurrent			(31)			28			(3)						(18)			10			(8)
Total fair value of derivative liabilities			$(93)			$74			$(19)						$(93)			$55			$(38)
Net fair value derivative assets (liabilities)			$392			$(72)			$320						$231			$(58)			$173
CECONY
Fair value of derivative assets
Current			$289			$(113)			$176			(b)			$162			$(88)			$74			(b)
Noncurrent			164			(27)			137						136			(19)			117
Total fair value of derivative assets			$453			$(140)			$313						$298			$(107)			$191
Fair value of derivative liabilities
Current			$(56)			$44			$(12)			(b)			$(70)			$43			$(27)			(b)
Noncurrent			(30)			27			(3)						(14)			8			(6)
Total fair value of derivative liabilities			$(86)			$71			$(15)						$(84)			$51			$(33)
Net fair value derivative assets (liabilities)			$367			$(69)			$298						$214			$(56)			$158

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

(b)At June 30, 2026, collateral and margin deposits for Con Edison and CECONY were classified as derivative assets of $3 million and $2 million, and as derivative liabilities of $(4) million and $(2) million, respectively. At December 31, 2025, collateral and margin deposits for Con Edison and CECONY were classified as derivative assets of $1 million and an immaterial amount, respectively, and as derivative liabilities of $(16) million and $(14) million, respectively. These amounts are presented on the consolidated balance sheets, but not included in the table. Margin is collateral, typically cash, that the holder of a derivative instrument is required to deposit in order to transact on an exchange and to cover its potential losses with its broker or the exchange.

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

The following tables present the realized and unrealized gains or losses on derivatives that have been deferred or recognized in earnings for the three and six months ended June 30, 2026 and 2025:

						For the Three Months Ended June 30,
						Con Edison									CECONY
(Millions of Dollars)			Financial Statement Location (a)			2026			2025						2026			2025
Pre-tax gains (losses) deferred in accordance with accounting rules for regulated operations:
Current			Regulatory liabilities			$67			$(85)						$65			$(77)
Noncurrent			Regulatory liabilities			73			5						71			4
Total deferred gains (losses)						$140			$(80)						$136			$(73)
Current			Regulatory assets			$(12)			$100						$(9)			$93
Current			Recoverable energy costs			(43)			(77)						(41)			(71)
Noncurrent			Regulatory assets			(1)			43						(1)			40
Total deferred gains (losses)						$(56)			$66						$(51)			$62
Net deferred gains (losses) (b)						$84			$(14)						$85			$(11)

(a)For the three months ended June 30, 2026, pre-tax gains recognized in "Other operations and maintenance" expense on the Companies' consolidated income statements for Con Edison and CECONY include an immaterial amount for refined fuels.

(b)Unrealized net deferred gains on electric and gas derivatives for the Utilities increased as a result of higher electric and gas commodity prices during the three months ended June 30, 2026. Upon settlement, short-term deferred derivative losses generally increase the recoverable costs of electric and gas purchases.

						For the Six Months Ended June 30,
						Con Edison									CECONY
(Millions of Dollars)			Financial Statement Location (a)			2026			2025						2026			2025
Pre-tax gains/(losses) deferred in accordance with accounting rules for regulated operations:
Current			Regulatory liabilities			$131			$2						$123			$2
Noncurrent			Regulatory liabilities			22			17						23			17
Total deferred gains (losses)						$153			$19						$146			$19
Current			Regulatory assets			$10			$(5)						$11			$(5)
Current			Recoverable energy costs			188			54						171			51
Noncurrent			Regulatory assets			(7)			1						(8)			—
Total deferred gains (losses)						$191			$50						$174			$46
Net deferred gains (losses) (b)						$344			$69						$320			$65

(a)For the six months ended June 30, 2026, pre-tax gains recognized in "Other operations and maintenance" expense on the Companies' consolidated income statements for Con Edison and CECONY include $3 million for refined fuels.

(b)Unrealized net deferred gains on electric and gas derivatives for the Utilities increased as a result of higher electric and gas commodity prices during the six months ended June 30, 2026. Upon settlement, short-term deferred derivative losses generally increase the recoverable costs of electric and gas purchases.

The following table presents the hedged volume of Con Edison’s and CECONY’s commodity derivative transactions at June 30, 2026:

			Electric Energy (MWh) (a)(b)			Capacity (MW-mos) (a)			Natural Gas (Dt) (a)(b)			Refined Fuels (gallons)
Con Edison			37,754,800			26,100			304,680,000			2,268,000
CECONY			36,017,425			16,125			281,370,000			2,268,000

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

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

The Companies are exposed to credit risk related to transactions entered into primarily for the various energy supply and hedging activities by the Utilities. Credit risk relates to the loss that may result from a counterparty’s nonperformance. The Companies use credit policies to manage this risk, including an established credit approval process, monitoring of counterparty limits, netting provisions within agreements, collateral or prepayment arrangements, credit insurance and credit default swaps. The Companies measure credit risk exposure as the replacement cost for open energy commodity and derivative positions plus amounts owed from counterparties for settled transactions. The replacement cost of open positions represents unrealized gains, net of any unrealized losses where the Companies have a legally enforceable right to offset.

At June 30, 2026, Con Edison and CECONY had $96 million and $91 million of credit exposure, respectively, in connection with open energy supply net receivables and hedging activities, net of collateral. Con Edison’s net credit exposure consisted of $84 million with investment-grade counterparties, $11 million with commodity exchange brokers, and $1 million with non-investment grade/non-rated counterparties. CECONY’s net credit exposure consisted of $80 million with investment-grade counterparties, $10 million with commodity exchange brokers, and $1 million with non-investment grade/non-rated counterparties.

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

The following table presents the aggregate fair value of the Companies’ derivative instruments with credit-risk-related contingent features that are in a net liability position, the collateral posted including cash and letters of credit for such positions and the additional cash collateral that would have been required to be posted had the lowest applicable credit rating been reduced one level and to below investment grade at June 30, 2026:

(Millions of Dollars)			Con Edison (a)						CECONY (a)
Aggregate fair value – net liabilities			$17						$14
Collateral posted			2						—
Additional collateral (b) (downgrade one level from current ratings)			—						—
Additional collateral (b)(c) (downgrade to below investment grade from current ratings)			56						49

(a)Non-derivative transactions for the purchase and sale of electricity and gas and qualifying derivative instruments, that have been designated as normal purchases or normal sales, are excluded from the table. These transactions primarily include purchases of electricity from independent system operators. In the event the Utilities are no longer extended unsecured credit for such purchases, the Companies would be required to post additional cash collateral of $1 million at June 30, 2026. For certain other such non-derivative transactions, the Companies could be required to post collateral under certain circumstances, including in the event counterparties had reasonable grounds for insecurity.

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

(c)Derivative instruments that are net assets have been excluded from the table. At June 30, 2026, if Con Edison and CECONY had been downgraded to below investment grade, they would have been required to post additional cash collateral for such derivative instruments of $57 million and $52 million, respectively.

Note O – Fair Value Measurements

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

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

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

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

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

Assets and liabilities measured at fair value on a recurring basis as of June 30, 2026 and December 31, 2025 are summarized below.

			2026															2025
(Millions of Dollars)			Level 1			Level 2			Level 3			Netting Adjustment (d)			Total			Level 1			Level 2			Level 3			Netting Adjustment (d)			Total
Con Edison
Derivative assets:
Commodity (a)(b)(c)			$16			$444			$10			$(128)			$342			$19			$292			$5			$(104)			$212
Mutual Funds (a)(b)			623			—			—			—			623			606			—			—			—			606
Cash Value of Life Insurance Policies (a)(b)			—			144			—			—			144			—			138			—			—			138
Total assets			$639			$588			$10			$(128)			$1,109			$625			$430			$5			$(104)			$956
Derivative liabilities:
Commodity (a)(b)(c)			$13			$58			$6			$(54)			23			$6			$70			$10			$(32)			$54
CECONY
Derivative assets:
Commodity (a)(b)(c)			$16			$415			$7			$(123)			$315			$19			$270			$2			$(100)			$191
Mutual Funds (a)(b)			608			—			—			—			608			591			—			—			—			591
Cash Value of Life Insurance Policies (a)(b)(d)			—			137			—			—			137			—			131			—			—			131
Total assets			$624			$552			$7			$(123)			$1,060			$610			$401			$2			$(100)			$913
Derivative liabilities:
Commodity (a)(b)(c)			$12			$55			$3			$(53)			$17			$6			$68			$5			$(32)			$47

(a)The Companies’ policy is to review the fair value hierarchy and recognize transfers into and transfers out of the levels at the end of each reporting period. Transfers out of Level 3 represent assets and liabilities that were previously classified as Level 3 for which the inputs became observable for classification in Level 2. The inputs are now observable because of availability of observable market data due to the decrease in the terms of certain contracts from beyond three years to less than three years.

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

(c)The accounting rules for fair value measurements and disclosures require consideration of the impact of nonperformance risk (including credit risk) from a market participant perspective in the measurement of the fair value of assets and liabilities. At June 30, 2026 and December 31, 2025, the Companies determined that nonperformance risk would have no material impact on their financial position or results of operations.

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

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

			Fair Value of Level 3 at June 30, 2026			Valuation Techniques			Unobservable Inputs			Range			Average Market Price
			(Millions of Dollars)
Con Edison – Commodity
Electricity			$5			Discounted Cash Flow			Forward energy prices ($/MWh) (a)			$40.10 - $131.20 per MWh			$67.02
Electricity			(2)			Discounted Cash Flow			Forward capacity prices ($/kW-month) (a)			$1.36 - $8.37 per kW-month			$4.22
Transmission Congestion Contracts			1			Discounted Cash Flow			Inter-zonal forward price curves adjusted for historical zonal losses ($/MWh) (b)			$0.16 - $4.88 per MWh			$1.09
Total Con Edison—Commodity			$4
CECONY – Commodity
Electricity			$5			Discounted Cash Flow			Forward energy prices ($/MWh) (a)			$40.10 - $131.20 per MWh			$67.02
Electricity			(2)			Discounted Cash Flow			Forward capacity prices ($/kW-month) (a)			$1.36 - $8.37 per kW-month			$4.11
Transmission Congestion Contracts			1			Discounted Cash Flow			Inter-zonal forward price curves adjusted for historical zonal losses ($/MWh) (b)			$0.16 - $4.88 per MWh			$1.09
Total CECONY—Commodity			$4

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

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

The table listed below provides a reconciliation of the beginning and ending net balances for assets and liabilities measured at fair value as of June 30, 2026 and 2025 and classified as Level 3 in the fair value hierarchy:

			For the Three Months Ended June 30,
			Con Edison						CECONY
(Millions of Dollars)			2026			2025			2026			2025
Beginning balance as of April 1,			$8			$(13)			$3			$(5)
Included in earnings			3			(1)			1			—
Included in regulatory assets and liabilities			(4)			(4)			1			(3)
Settlements			(3)			1			(1)			—
Transfer out of level 3			—			—			—			—
Ending balance as of June 30,			$4			$(17)			$4			$(8)

			For the Six Months Ended June 30,
			Con Edison						CECONY
(Millions of Dollars)			2026			2025			2026			2025
Beginning balance as of January 1,			$(5)			$(15)			$(3)			$(6)
Included in earnings			—			(3)			—			—
Included in regulatory assets and liabilities			10			(1)			8			(2)
Settlements			—			2			—			—
Transfer out of level 3			(1)			—			(1)			—
Ending balance as of June 30,			$4			$(17)			$4			$(8)

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

Note P – Related Party Transactions

The NYSPSC generally requires that the Utilities and Con Edison’s other subsidiaries be operated as separate entities. The Utilities may provide administrative and other services to Con Edison and its other subsidiaries only pursuant to cost allocation policies and procedures approved by the NYSPSC. Transfers of certain assets between the Utilities and Con Edison or its other subsidiaries may be made only as approved by the NYSPSC. The debt of the Utilities is to be raised directly by the Utilities and not derived from Con Edison. Without the prior permission of the NYSPSC, the Utilities may not make loans to, guarantee the obligations of, or pledge assets as security for the indebtedness of Con Edison or its other subsidiaries. The NYSPSC limits the dividends that the Utilities may pay Con Edison. As a result, substantially all of the net assets of CECONY and O&R ($23,567 million and $1,463 million, respectively), at June 30, 2026, are considered restricted net assets. The NYSPSC may impose additional measures to separate, or “ring fence,” the Utilities from Con Edison and its other subsidiaries.

The costs of administrative and other services provided by CECONY to, and received by it from, Con Edison and its other subsidiaries for the three and six months ended June 30, 2026 and 2025 were as follows:

			For the Three Months Ended June 30,
			CECONY
(Millions of Dollars)			2026			2025
Cost of services provided			$43			$37
Cost of services received			$22			$22

			For the Six Months Ended June 30,
			CECONY
(Millions of Dollars)			2026			2025
Cost of services provided			$81			$77
Cost of services received			$43			$42

In addition, CECONY and O&R have joint gas supply arrangements pursuant to which CECONY sold to, or acted as agent to purchase for, O&R, $12 million and $19 million of natural gas for the three months ended June 30, 2026 and 2025, respectively, and $73 million and $63 million of natural gas for the six months ended June 30, 2026 and 2025, respectively. These amounts are net of the effect of related hedging transactions.

At June 30, 2026 and December 31, 2025, CECONY's net receivable from Con Edison for income taxes was $232 million and $24 million, respectively.

The Utilities perform work and incur expenses on behalf of New York Transco, a company in which Con Edison Transmission owns an interest. The Utilities bill New York Transco for such work and expenses in accordance with established policies. For the three months ended June 30, 2026 and 2025, the amounts billed by the Utilities to New York Transco were immaterial. For the six months ended June 30, 2026 and 2025, the amounts billed by the Utilities to New York Transco were immaterial.

The FERC has authorized CECONY to lend funds to O&R for a period of not more than 12 months, in an amount not to exceed $250 million, at prevailing market rates. At June 30, 2026 and December 31, 2025, there were no outstanding loans to O&R.

Note Q – Dispositions

Con Edison's sale of all of the stock of the Clean Energy Businesses in March 2023 included all assets, operations and projects of the Clean Energy Businesses with the exception of one deferred project, Broken Bow II, a 75 MW nameplate capacity wind power project located in Nebraska, a tax equity interest in the Crane solar project and a tax equity interest in two renewable electric projects located in Virginia (Virginia Tax Equity Interest).

In January 2025, Con Edison completed the sale and transfer of Broken Bow II to RWE and the corresponding value of $54 million (net of assumed debt and other final adjustments) was paid to Con Edison. RWE Renewables Americas, LLC operated the facility on behalf of Con Edison until the sale and transfer to RWE pursuant to certain service agreements, for which the fees were not material.

In October 2025, Con Edison sold its tax equity interest in the Crane solar project to another member after holding it for a five-year period.

Con Edison continues to retain the Virginia Tax Equity Interest, which produced renewable energy tax credits that can be used to reduce Con Edison’s federal income tax. These tax credits are subject to recapture, in whole or in part, if the assets are sold within a five-year period beginning on the date on which the assets are placed in service. Con Edison will continue to employ HLBV accounting for the Virginia Tax Equity Interest. The carrying value of the Virginia Tax Equity Interest was $5 million at June 30, 2026 and December 31, 2025.

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. Con Edison's gain on the sale of the MVP interest was $189 million ($134 million, after tax) for the six months ended June 30, 2026.

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 by the NYSPSC.

Note R – New Financial Accounting Standards

In May 2026, the Financial Accounting Standards Board (FASB) issued guidance on accounting for Environmental Credits and Environmental Credit Obligations (Topic 818) through ASU 2026-02. The guidance addresses accounting for and disclosure of environmental credits and environmental credit obligations. It provides recognition, measurement, presentation, and disclosure requirements for all entities that generate, purchase, or receive environmental credits or have a regulatory compliance obligation that may be settled with environmental credits. The amendments in ASU 2026-02 are effective for fiscal years beginning after December 15, 2027, and interim reporting periods within those fiscal years, with early adoption permitted. The Companies are evaluating the potential impact of this new standard on their financial position, results of operations and liquidity.