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 March 31, 2023 | Con Edison | Yes ☒ | No ☐ | | --- | --- | --- | | CECONY | Yes ☒ | No ☐ | 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 princi ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ___________________________________________________ FORM 10-K ___________________________________________________ ☒ Annual Report Pursuant To Section 13 or 15(d) of the Securities Exchange Act of 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2022 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 ...

Consolidated Edison, Inc. (NYSE:ED) ESG Presentation Summary Company Overview - Consolidated Edison, Inc. is one of the largest investor-owned utilities in the U.S., providing electric, gas, and steam services to approximately 10 million people in New York City and surrounding areas [5][6] - The company delivers 44% of New York State's electricity and has a strong reliability record, with outage rates significantly lower than national averages [6][7] Key Points on Environmental, Social, and Governance (ESG) Initiatives Environmental Commitment - Con Edison is committed to leading the clean energy transition, with a focus on five main pillars: building a future grid, empowering customers, reimagining the gas system, reducing carbon footprint, and partnering with stakeholders [8][9][10] - The company plans to invest over $300 million in EV charging infrastructure and more than $1.5 billion in energy efficiency programs over the next two years [16] - By 2030, Con Edison aims to deliver 1,000 megawatts of battery storage and electrify 150,000 buildings, with a goal of being net zero by 2040 [16][17] Regulatory and Legislative Landscape - New York State's Climate Leadership and Community Protection Act (CLCPA) sets aggressive targets for a zero-emissions electricity sector by 2040 and economy-wide carbon neutrality by 2050 [13] - Local Law 97 mandates significant emissions reductions from large buildings, requiring compliance by 2024 and 2030 [14] Infrastructure and Investment - Con Edison is focusing on enhancing its electric grid to support renewable energy and electrification, with expected demand growth of 42% to 85% by 2050 [19] - The company is also investing in battery storage and transmission projects to facilitate the integration of renewable resources [25][27] Social Responsibility and Community Engagement - Con Edison has launched diversity, equity, and inclusion initiatives to attract and retain talent, with 52% of employees being people of color and 22% women [44] - The company is committed to equitable energy outcomes and has formed an environmental justice working group to ensure community engagement [42][43] Financial Outlook - An estimated $72 billion is required for clean energy transition investments in Con Edison’s service territory over the next decade, with $15.7 billion expected to be deployed by 2024 [47] - The sale of the CEBs for $6.8 billion will allow Con Edison to focus on its clean energy transition while continuing to serve its regulated utility customers [48] Risks and Challenges - Con Edison faces various risks, including regulatory changes, environmental impacts, and the need for significant capital investments to meet clean energy goals [3] - The company anticipates economic pressures on its gas delivery system as demand decreases, necessitating a strategic approach to maintain safety and reliability [56][57] Conclusion - Con Edison is positioned to play a critical role in New York's clean energy future, with a strong commitment to environmental sustainability, community engagement, and operational excellence [52][74]

Clean Energy Commitment & Goals - Con Edison plans to invest over $300 million in EV Make-Ready Program by 2025[13] - Con Edison aims to invest $15 billion in energy efficiency programs by 2025[13] - The company aims to reduce methane emissions from the natural gas delivery system to ≤1% by 2025[13] - Con Edison plans to invest ˃$1 billion in electric transmission for renewable energy and $2 billion in system resiliency by 2030[14] - The company aims to support the installation of 400000 EV charging plugs by 2035 and 1 million EV charging plugs by 2050[15] - Con Edison aims to reduce methane emissions from the natural gas delivery system to net zero by 2040[15] - Con Edison has reduced its carbon footprint by 50% since 2005[44] System & Customer Information - Con Edison delivers electricity, gas, and steam to 10 million people, fulfilling about 44% of New York State's electricity needs[6] - Con Edison provides natural gas to 12 million customers[6] - Con Edison's building efficiency programs are investing $18 billion from 2020 through 2025 in energy efficiency and clean heating[31] - Con Edison purchased $362 million from women- and minority-owned businesses and $582 million from small businesses in 2021[50] Financials - Con Edison envisions $72 billion in investments over the next 10 years to achieve its goals[54] - The company forecasts a capital investment of ~$157 billion for 2022-2024, with $47 billion allocated to green projects and $11 billion for safety & reliability[54] - Con Edison reached an agreement to sell Con Edison Clean Energy Businesses to a subsidiary of RWE Aktiengesellschaft for $68 billion, expected to close in the first half of 2023[55]

Consolidated Edison, Inc. November 13-15, 2022 Edison Electric Institute Financial Conference Presentation Available Information On November 3, 2022, Consolidated Edison, Inc. issued a press release reporting its third quarter 2022 earnings and filed with the Securities and Exchange Commission the company's third quarter 2022 Form 10-Q. This presentation should be read together with, and is qualified in its entirety by reference to, the earnings press release and the Form 10-Q. Copies of the earnings press ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ Quarterly Report Pursuant To Section 13 or 15(d) of the Securities Exchange Act of 1934 FOR THE QUARTERLY PERIOD ENDED September 30, 2022 OR ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to | --- | --- | --- | --- | --- | |--------------------------|------------------------------------------------------------------------------------------------------ ...

Consolidated Edison, Inc. 2nd Quarter 2022 Earnings Release Presentation August 4, 2022 Available Information On August 4, 2022, Consolidated Edison, Inc. issued a press release reporting its second quarter 2022 earnings and filed with the Securities and Exchange Commission the company's second quarter 2022 Form 10-Q. This presentation should be read together with, and is qualified in its entirety by reference to, the earnings press release and the Form 10-Q. Copies of the earnings press release and the For ...

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, 2022 OR ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to | --- | --- | --- | --- | --- | |--------------------------|----------------------------------------------------------------------------------------------------------- ...

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 March 31, 2022 OR ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to | --- | --- | --- | --- | --- | |--------------------------|---------------------------------------------------------------------------------------------------------- ...

Introduction [Company Overview](index=7&type=section&id=Company%20Overview) Consolidated Edison, Inc, is a holding company operating through its regulated utilities, clean energy, and transmission subsidiaries - Con Edison's primary business segments are its regulated utilities (CECONY and O&R), its renewable energy operations (Clean Energy Businesses), and its transmission investment arm (Con Edison Transmission)[23](index=23&type=chunk) - The regulated utilities, **CECONY and O&R**, are expected to provide substantially all of the company's earnings over the next few years through approved rate plans[24](index=24&type=chunk) [Significant Developments and Outlook](index=7&type=section&id=Significant%20Developments%20and%20Outlook) The company reported increased net income in 2021, plans over $14 billion in capital expenditures, and is exploring strategic alternatives for its Clean Energy Businesses Financial Performance Summary (2020 vs. 2021) | Metric | 2021 | 2020 | | :--- | :--- | :--- | | **Net Income** | $1,346 million | $1,101 million | | **EPS** | $3.86 | $3.29 | | **Adjusted Earnings** | $1,528 million | $1,399 million | | **Adjusted EPS** | $4.39 | $4.18 | Planned Capital Investments (2022-2024, in millions) | Segment | 2022 | 2023 | 2024 | | :--- | :--- | :--- | :--- | | **The Utilities** | $4,134 | $5,015 | $5,203 | | **Clean Energy Businesses** | $400 | $400 | $400 | | **Con Edison Transmission** | $73 | $42 | $10 | - The company is considering strategic alternatives for its Clean Energy Businesses, which develops, owns, and operates renewable energy projects[27](index=27&type=chunk) - Financing plans for 2022-2024 include issuing **$800M-$1,400M of long-term debt in 2022**, an aggregate of **$2.5B in 2023-2024**, and up to **$850M of common equity in 2022** plus **$750M in 2023-2024**[28](index=28&type=chunk)[29](index=29&type=chunk) - In 2021, Con Edison Transmission's subsidiary, CET Gas, recorded significant pre-tax impairment losses: **$212 million** on its investment in Stagecoach Gas Services LLC and **$231 million** on its investment in Mountain Valley Pipeline LLC[39](index=39&type=chunk)[40](index=40&type=chunk) [Non-GAAP Financial Measures](index=10&type=section&id=Non-GAAP%20Financial%20Measures) The company uses non-GAAP adjusted earnings to provide a clearer view of ongoing financial performance by excluding certain non-recurring items Reconciliation of Reported Net Income to Adjusted Earnings (Millions of Dollars) | Description | 2021 | 2020 | 2019 | | :--- | :--- | :--- | :--- | | **Reported net income – GAAP basis** | $1,346 | $1,101 | $1,343 | | Impairment loss on MVP (net of tax) | 162 | 223 | — | | Impairment loss on Stagecoach (net of tax) | 147 | — | — | | HLBV effects (net of tax) | (98) | 32 | 74 | | Net mark-to-market effects (net of tax) | (37) | 43 | 21 | | Other adjustments | 8 | — | — | | **Adjusted earnings (Non-GAAP)** | **$1,528** | **$1,399** | **$1,438** | Reconciliation of Reported EPS to Adjusted EPS | Description | 2021 | 2020 | 2019 | | :--- | :--- | :--- | :--- | | **Reported EPS – GAAP basis** | $3.86 | $3.29 | $4.09 | | Adjustments (net) | $0.53 | $0.89 | $0.29 | | **Adjusted EPS (Non-GAAP)** | **$4.39** | **$4.18** | **$4.38** | Part I [Item 1: Business](index=15&type=section&id=Item%201%3A%20Business) The company's operations are segmented into regulated utilities, clean energy, and transmission, with a focus on capital investment and environmental goals [Overview](index=15&type=section&id=Overview) Con Edison operates through four main subsidiaries, with its regulated utilities forming the core business and strategic alternatives being explored for its clean energy arm - Con Edison's main business segments are CECONY, O&R, the Clean Energy Businesses, and Con Edison Transmission[57](index=57&type=chunk)[59](index=59&type=chunk) - CECONY provides electric service to approximately **3.5 million customers** and gas to **1.1 million customers** in NYC and Westchester, and operates the largest steam distribution system in the U.S[60](index=60&type=chunk)[61](index=61&type=chunk) - O&R provides electric service to approximately **0.3 million customers** and gas to over **0.1 million customers** in southeastern NY and northern NJ[63](index=63&type=chunk) - The company is considering strategic alternatives for its Clean Energy Businesses, which owns and operates approximately **3,000 MW (AC)** of renewable energy projects[59](index=59&type=chunk)[64](index=64&type=chunk) [Utility Regulation](index=16&type=section&id=Utility%20Regulation) The utilities are primarily regulated by state commissions that set rates and service terms, with federal oversight from FERC for interstate activities - The NYSPSC is the primary regulator for the Utilities in New York, with authority to set rates, approve security issuances, and impose penalties for violations[66](index=66&type=chunk)[67](index=67&type=chunk) - Utility rate plans are designed to allow recovery of approved costs, including capital investments, and provide a return on invested capital[71](index=71&type=chunk)[75](index=75&type=chunk) - FERC regulates the transmission and wholesale sales of electricity and natural gas in interstate commerce, with the authority to impose substantial penalties for violations[86](index=86&type=chunk) [Competition](index=19&type=section&id=Competition) The utilities face growing competition from distributed energy resources, while climate legislation is expected to accelerate the shift away from gas and steam - Competition is growing from distributed generation (DG) sources like solar, fuel cells, and battery storage, which provide an alternative source of electricity for customers[88](index=88&type=chunk) Growth in Distribution-Level DG Capacity (Total MW) | Technology | CECONY 2021 | CECONY 2017 | O&R 2021 | O&R 2017 | | :--- | :--- | :--- | :--- | :--- | | Photovoltaic solar | 398 | 178 | 183 | 75 | | Battery energy storage | 18 | — | 11 | — | | **Total DG** | **691** | **366** | **220** | **100** | - State and city climate laws are expected to increase DER adoption and electric alternatives, leading to a decrease in gas and steam consumption[88](index=88&type=chunk) [The Utilities](index=20&type=section&id=The%20Utilities) This section provides detailed operational and financial data for the regulated utilities, highlighting capital investment and demand forecasts CECONY Net Utility Plant at Year-End (Millions) | Service | Dec 31, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | **Electric (Distribution)** | $21,240 | $20,366 | | **Electric (Transmission)** | $3,658 | $3,496 | | **Gas** | $9,748 | $8,522 | | **Steam** | $1,924 | $1,854 | O&R Net Utility Plant at Year-End (Millions) | Service | Dec 31, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | **Electric (Distribution)** | $1,178 | $1,115 | | **Electric (Transmission)** | $297 | $290 | | **Gas** | $725 | $684 | - CECONY forecasts average annual growth in peak demand over the next five years of approximately **0.4% for electricity**, **1.3% for gas**, and **0.1% for steam**[99](index=99&type=chunk)[110](index=110&type=chunk)[118](index=118&type=chunk) - O&R forecasts an average annual decrease in electric peak demand of **0.3%** and average annual growth in gas peak demand of **0.1%** over the next five years[126](index=126&type=chunk)[132](index=132&type=chunk) [Clean Energy Businesses](index=28&type=section&id=Clean%20Energy%20Businesses) This segment develops and operates a growing portfolio of utility-scale renewable energy projects across the United States Renewable Electric Projects Generating Capacity (MW AC) | Year | Capacity (MW AC) | | :--- | :--- | | 2017 | 1,358 | | 2018 | 2,588 | | 2019 | 2,628 | | 2020 | 2,809 | | 2021 | 3,061 | - The Clean Energy Businesses' portfolio is geographically diverse, with major utility-scale solar and wind projects across the U.S[136](index=136&type=chunk) - In addition to generation, this segment provides energy-efficiency services and manages dispatch for **11,127 MW** of third-party generating plants[139](index=139&type=chunk)[140](index=140&type=chunk) [Con Edison Transmission](index=30&type=section&id=Con%20Edison%20Transmission) This segment invests in electric and gas transmission assets, recently divesting from some gas holdings while developing major electric projects - CET Electric owns a **45.7% interest** in New York Transco LLC, which is developing transmission projects to increase capacity in New York[142](index=142&type=chunk)[144](index=144&type=chunk) - In 2021, CET Gas sold its **50% interest** in Stagecoach Gas Services for **$629 million** and recorded a pre-tax impairment loss of **$212 million** on the investment[147](index=147&type=chunk) - CET Gas recorded pre-tax impairment losses of **$231 million in 2021** and **$320 million in 2020** on its investment in the Mountain Valley Pipeline (MVP) project[146](index=146&type=chunk) [Capital Requirements and Resources](index=31&type=section&id=Capital%20Requirements%20and%20Resources) The company has substantial capital needs for system upgrades, funded through a mix of internal funds, debt, and equity issuances Capital Investments (Actual & Estimated, Millions of Dollars) | Segment | 2021 (Actual) | 2022 (Est.) | 2023 (Est.) | 2024 (Est.) | | :--- | :--- | :--- | :--- | :--- | | **CECONY** | $3,418 | $3,893 | $4,762 | $4,957 | | **O&R** | $217 | $241 | $253 | $246 | | **Con Edison Transmission** | $31 | $73 | $42 | $10 | | **Clean Energy Businesses** | $298 | $400 | $400 | $400 | | **Total** | **$3,964** | **$4,607** | **$5,457** | **$5,613** | - Financing plans for 2022-2024 include issuing **$800M-$1.4B of long-term debt in 2022**, an aggregate of **$2.5B in 2023-2024**, and up to **$850M of common equity in 2022** plus an aggregate of **$750M in 2023-2024**[161](index=161&type=chunk) Credit Ratings | Entity | Moody's | S&P | Fitch | | :--- | :--- | :--- | :--- | | **Con Edison** | Baa2 | BBB+ | BBB+ | | **CECONY** | Baa1 | A- | A- | | **O&R** | Baa2 | A- | A- | [Environmental Matters](index=35&type=section&id=Environmental%20Matters) The company is navigating significant environmental regulations and climate risks, including state-mandated clean energy goals and substantial cleanup liabilities - New York's CLCPA is a major driver, setting goals for **70% renewable electricity by 2030** and **100% zero-emission electricity by 2040**[169](index=169&type=chunk) - A 2019 climate change vulnerability study estimated that CECONY may need to invest between **$1.8 billion and $5.2 billion by 2050** to adapt its systems to climate risks[186](index=186&type=chunk) - The company has significant potential liabilities for environmental cleanup, with undiscounted liability for former manufactured gas plant (MGP) sites estimated to range from **$630 million to $2.39 billion** for CECONY[201](index=201&type=chunk)[214](index=214&type=chunk) - CECONY is a Potentially Responsible Party (PRP) for major Superfund sites but is unable to estimate its final liability[204](index=204&type=chunk)[205](index=205&type=chunk) [Human Capital](index=43&type=section&id=Human%20Capital) The company employed nearly 14,000 people at year-end 2021, with a focus on safety, employee development, and diversity Employee Headcount by Subsidiary (as of Dec 31, 2021) | Subsidiary | Employee Count | | :--- | :--- | | **CECONY** | 12,325 | | **O&R** | 1,085 | | **Clean Energy Businesses** | 453 | | **Con Edison Transmission** | 8 | | **Total** | **13,871** | - The workforce has a low annual turnover rate of **6.4%**, with an average length of service of **14.9 years**[230](index=230&type=chunk) - As of year-end 2021, **women represented 21.9%** of the total workforce, and **people of color represented 49.7%**[230](index=230&type=chunk) [Item 1A: Risk Factors](index=44&type=section&id=Item%201A%3A%20Risk%20Factors) The company faces significant regulatory, operational, and financial risks, including potential penalties, cyber-attacks, and reliance on capital markets - **Regulatory/Compliance Risks:** The company is subject to extensive regulation and substantial penalties, and rate plans may not provide a reasonable return[236](index=236&type=chunk)[237](index=237&type=chunk)[238](index=238&type=chunk) - **Operations Risks:** Failure of or damage to energy facilities from operational errors, climate change impacts, or cyber-attacks could result in significant liability and service interruptions[240](index=240&type=chunk)[241](index=241&type=chunk) - **Financial and Market Risks:** Con Edison's ability to pay dividends depends on distributions from its subsidiaries, and it requires continuous access to capital markets to fund over **$14.3 billion** in construction expenditures[245](index=245&type=chunk)[246](index=246&type=chunk) - **Other Risks:** The COVID-19 pandemic poses ongoing risks to liquidity due to slower customer payments and supply chain disruptions[250](index=250&type=chunk)[251](index=251&type=chunk) [Item 1B: Unresolved Staff Comments](index=47&type=section&id=Item%201B%3A%20Unresolved%20Staff%20Comments) The company reports no unresolved comments from the staff of the Securities and Exchange Commission - There are no unresolved comments from the SEC staff for either Con Edison or CECONY[253](index=253&type=chunk) [Item 2: Properties](index=48&type=section&id=Item%202%3A%20Properties) The company's significant properties consist of the electric, gas, and steam facilities owned by its subsidiaries - The company's properties consist mainly of the utility plant and facilities of its subsidiaries, as detailed in the Business section (Item 1)[255](index=255&type=chunk)[256](index=256&type=chunk)[257](index=257&type=chunk) [Item 3: Legal Proceedings](index=48&type=section&id=Item%203%3A%20Legal%20Proceedings) Information regarding legal proceedings is incorporated by reference from notes to the financial statements - Details on legal proceedings are located in Note B (Regulatory Matters), Note G (Environmental Matters), and Note H (Manhattan Explosion and Fire) of the financial statements[259](index=259&type=chunk) [Item 4: Mine Safety Disclosures](index=48&type=section&id=Item%204%3A%20Mine%20Safety%20Disclosures) This item is not applicable to the company's operations - The company has no mine safety disclosures to report[260](index=260&type=chunk) Part II [Item 5: Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=50&type=section&id=Item%205%3A%20Market%20for%20the%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's stock trades on the NYSE, delivering a 23% total shareholder return in 2021 and increasing its quarterly dividend - Con Edison's common shares trade on the NYSE under the symbol "ED"[263](index=263&type=chunk) - In 2021, Con Edison's **total shareholder return was 23%**, compared to 17.7% for the S&P 500 Utilities Index and 28.7% for the S&P 500 Index[264](index=264&type=chunk) - Quarterly dividends were **$0.775 per share in 2021**, with an increase to **$0.79 per share** declared for payment in March 2022[263](index=263&type=chunk) [Item 7: Management's Discussion and Analysis of Financial Condition and Results of Operations](index=52&type=section&id=Item%207%3A%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the financial impact of rate plans, clean energy goals, and the COVID-19 pandemic on the company's performance and liquidity [Corporate Overview and Key Factors](index=52&type=section&id=Corporate%20Overview%20and%20Key%20Factors) Key factors influencing performance include pending rate cases, clean energy implementation, and the strategic realignment of business segments - CECONY filed for significant electric and gas rate increases effective January 2023, which will be critical for future earnings[273](index=273&type=chunk) - The long-term future of the gas business depends on its role in achieving New York's climate goals, with an expected shift towards electrification[276](index=276&type=chunk) - Con Edison Transmission is realigning its portfolio to focus on electric transmission, highlighted by the 2021 sale of its interest in Stagecoach[279](index=279&type=chunk) [COVID-19 Impacts](index=54&type=section&id=COVID-19%20Impacts) The pandemic increased customer accounts receivable and negatively affected liquidity, though regulatory mechanisms are in place to recover some costs - The pandemic caused a slower recovery of cash from customer receivables, with the allowance for uncollectible accounts increasing from **$147M in 2020 to $316M in 2021**[296](index=296&type=chunk) - The company benefited from the CARES Act, recognizing a **$10 million tax benefit** in 2020 and deferring approximately **$71 million** in employer payroll taxes[292](index=292&type=chunk)[293](index=293&type=chunk) - In November 2021, the NYSPSC approved a surcharge mechanism for CECONY to recover **$62 million** in late payment charges not billed during the pandemic[303](index=303&type=chunk) [Results of Operations](index=57&type=section&id=Results%20of%20Operations) Net income increased in 2021, driven by higher revenues at CECONY and the Clean Energy Businesses, partially offset by impairment losses at Con Edison Transmission Net Income for Common Stock by Segment (Millions) | Segment | 2021 | 2020 | 2019 | | :--- | :--- | :--- | :--- | | **CECONY** | $1,344 | $1,185 | $1,250 | | **O&R** | $75 | $71 | $70 | | **Clean Energy Businesses** | $266 | $24 | $(18) | | **Con Edison Transmission** | $(316) | $(175) | $52 | | **Con Edison Total** | **$1,346** | **$1,101** | **$1,343** | - CECONY's 2021 earnings increased by **$159 million**, primarily due to higher rate base and earnings adjustment mechanisms[313](index=313&type=chunk)[314](index=314&type=chunk) - The Clean Energy Businesses' net income rose by **$242 million** in 2021, driven by higher revenues from new projects and favorable accounting effects[314](index=314&type=chunk) - Con Edison Transmission's net loss widened by **$141 million** in 2021 due to impairment losses on its gas investments[314](index=314&type=chunk) [Liquidity and Capital Resources](index=80&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains sufficient liquidity through operating cash flows and capital market access to fund its substantial construction program Consolidated Cash Flow Summary (Millions) | Activity | 2021 | 2020 | 2019 | | :--- | :--- | :--- | :--- | | **Operating Activities** | $2,733 | $2,198 | $3,134 | | **Investing Activities** | $(3,484) | $(4,224) | $(3,782) | | **Financing Activities** | $461 | $2,245 | $859 | - In 2021, Con Edison issued **10.1 million common shares** for net proceeds of approximately **$775 million** to fund construction expenditures at CECONY[436](index=436&type=chunk) - CECONY issued **$2.25 billion** of long-term debentures in 2021 to repay short-term debt and fund general corporate purposes[440](index=440&type=chunk)[441](index=441&type=chunk) [Critical Accounting Estimates](index=92&type=section&id=Critical%20Accounting%20Estimates) Management identifies several critical accounting estimates involving significant judgment, including pensions, contingencies, and impairment testing - **Pensions:** A **0.25% decrease** in the discount rate would increase the 2022 pension cost by **$67 million** and the projected benefit obligation by **$729 million**[486](index=486&type=chunk)[490](index=490&type=chunk) - **Investments:** The company recorded significant pre-tax impairment losses on its investment in Mountain Valley Pipeline (MVP) of **$231 million in 2021** and **$320 million in 2020**[499](index=499&type=chunk) - **Allowance for Uncollectible Accounts:** The allowance for uncollectible accounts for Con Edison and CECONY increased significantly to **$317 million** and **$304 million**, respectively, at year-end 2021[505](index=505&type=chunk) [Item 7A: Quantitative and Qualitative Disclosures about Market Risk](index=95&type=section&id=Item%207A%3A%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company is exposed to interest rate, commodity price, and investment risks, which are managed through various mitigation strategies - A **10% increase** in interest rates on variable-rate debt would increase Con Edison's annual interest expense by an estimated **$1 million**[512](index=512&type=chunk) - A **10% decline** in market prices would decrease the fair value of the Utilities' commodity derivative instruments by an estimated **$117 million**, a change largely offset by cost recovery[514](index=514&type=chunk) - The pension plan's target asset allocation is **45-55% equity securities**, **33-43% debt securities**, and **10-14% real estate**[519](index=519&type=chunk) [Item 8: Financial Statements and Supplementary Data](index=96&type=section&id=Item%208%3A%20Financial%20Statements%20and%20Supplementary%20Data) This section contains the audited consolidated financial statements, independent auditor's report, and detailed notes for the fiscal year ended December 31, 2021 [Financial Statements](index=102&type=section&id=Financial%20Statements) The core financial statements present the company's performance and financial position for the year Con Edison Consolidated Income Statement Summary (Millions) | Line Item | 2021 | 2020 | 2019 | | :--- | :--- | :--- | :--- | | **Total Operating Revenues** | $13,676 | $12,246 | $12,574 | | **Operating Income** | $2,826 | $2,654 | $2,676 | | **Net Income for Common Stock** | $1,346 | $1,101 | $1,343 | Con Edison Consolidated Balance Sheet Summary (Millions) | Line Item | Dec 31, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | **Total Current Assets** | $5,551 | $5,301 | | **Net Plant** | $48,596 | $46,555 | | **Total Assets** | **$63,116** | **$62,895** | | **Total Current Liabilities** | $5,427 | $7,354 | | **Long-Term Debt** | $22,604 | $20,382 | | **Total Equity** | $20,336 | $19,065 | | **Total Liabilities and Equity** | **$63,116** | **$62,895** | [Notes to the Financial Statements](index=126&type=section&id=Notes%20to%20the%20Financial%20Statements) The notes provide critical details on accounting policies, regulatory matters, debt, pensions, and environmental liabilities - **Note B (Regulatory Matters):** Details the rate plans for CECONY and O&R, including authorized returns on equity and cost recovery mechanisms[686](index=686&type=chunk)[710](index=710&type=chunk) - **Note C (Capitalization):** Long-term debt maturing from 2022-2026 for Con Edison totals approximately **$2.5 billion**[795](index=795&type=chunk)[796](index=796&type=chunk) - **Note E (Pension Benefits):** The pension plan shifted from an underfunded status of **$1.94 billion** in 2020 to an **overfunded status of $1.15 billion** in 2021[811](index=811&type=chunk) - **Note G (Environmental Matters):** Accrued liabilities for manufactured gas plant sites were **$845 million** for Con Edison at year-end 2021, with potential liability as high as **$2.98 billion**[848](index=848&type=chunk)[852](index=852&type=chunk) [Item 9 & 9A-9C: Other Items](index=196&type=section&id=Item%209%20%26%209A-9C%3A%20Other%20Items) Management confirms the effectiveness of disclosure controls and procedures and reports no material changes to internal controls - Management concluded that the company's disclosure controls and procedures were effective as of December 31, 2021[1000](index=1000&type=chunk) - There were no changes in internal control over financial reporting during the most recent fiscal quarter that materially affected, or are reasonably likely to materially affect, internal controls[1002](index=1002&type=chunk) Part III [Items 10-14: Directors, Executive Compensation, Security Ownership, and Accountant Fees](index=197&type=section&id=Items%2010-14) This section incorporates by reference information on governance, compensation, and ownership from the company's 2022 proxy statement - Information regarding directors, executive compensation, and corporate governance is incorporated by reference from the company's forthcoming proxy statement[1004](index=1004&type=chunk) Equity Compensation Plan Information (as of Dec 31, 2021) | Plan Category | Securities to be Issued Upon Exercise | Securities Remaining for Future Issuance | | :--- | :--- | :--- | | **Approved by security holders** | 1,484,853 | 7,031,718 | | **Not approved by security holders** | 1,000 | — | Part IV [Item 15: Exhibits and Financial Statement Schedules](index=199&type=section&id=Item%2015%3A%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists the financial statements, schedules, and exhibits filed as part of the annual report - This section provides a comprehensive list of all documents filed with the 10-K, including financial statements, schedules, and exhibits such as bylaws, debt indentures, and executive compensation plans[1012](index=1012&type=chunk)[1013](index=1013&type=chunk)[1014](index=1014&type=chunk) [Item 16: Form 10-K Summary](index=205&type=section&id=Item%2016%3A%20Form%2010-K%20Summary) This item is not applicable, and no summary is provided - No Form 10-K summary is provided[1026](index=1026&type=chunk)