Con Edison(US:ED)2025-02-20 21:36Financial Performance - The gain on the sale of the Clean Energy Businesses for the year ended December 31, 2023, was $(865) million net of tax, reflecting a loss of $(2.49) per share[37]. - Reported net income for common stock on a GAAP basis was $1,820 million in 2024, down from $2,519 million in 2023, representing a decrease of approximately 27.7%[39]. - Adjusted earnings (Non-GAAP) increased to $1,868 million in 2024 from $1,762 million in 2023, reflecting a growth of about 6.0%[39]. - Reported earnings per share on a GAAP basis decreased to $5.26 in 2024 from $7.25 in 2023, a decline of approximately 27.5%[39]. - Adjusted earnings per share (Non-GAAP) rose to $5.40 in 2024, compared to $5.07 in 2023, indicating an increase of about 6.5%[39]. - The company recorded a pre-tax loss of $63 million related to the sale of the Clean Energy Businesses in 2024, compared to a pre-tax gain of $887 million in 2023[39]. - The effective income tax rate for 2024 was 24%, compared to 25% in 2023 and 31% in 2022[40]. - The net mark-to-market effects (net of tax) were $9 million in 2024, a significant improvement from a loss of $125 million in 2023[39]. - The HLBV effects (net of tax) were $3 million in 2024, compared to $8 million in 2023, showing a decrease of 62.5%[39]. Capital Expenditures and Financing - Con Edison plans to issue common equity of approximately $1,850 million in 2026 and up to $4,300 million in aggregate during 2027 through 2029[28]. - CECONY's capital expenditures for gas facilities were $11,830 million in 2024, up from $11,226 million in 2023[99]. - CECONY's total capital expenditures for 2024 were $4,728 million, an increase from $4,509 million in 2023 and $4,465 million in 2022, reflecting a growth of approximately 4.9% year-over-year[137]. - For the years 2025 through 2029, CECONY estimates total capital expenditures will reach $7,778 million in 2025, increasing to $9,223 million by 2028[141]. - Con Edison plans to issue up to $1,750 million of long-term debt in 2025 and up to $3,800 million in 2026, with a total of approximately $9,100 million planned for 2027 through 2029[155]. - As of December 31, 2024, CECONY's long-term debt totaled $23,650 million, with $21,900 million due after five years[145]. - The total long-term debt, including interest, amounted to $47,545 million, with $40,144 million due after five years[145]. - The NYSPSC authorized CECONY to issue up to $6,050 million of debt securities through 2027, of which $2,625 million had been issued as of December 31, 2024[156]. Customer and Market Operations - CECONY provides electric service to approximately 3.7 million customers across New York City and Westchester County, covering an area of about 660 square miles with a population exceeding 9 million[49]. - CECONY delivers gas to approximately 1.1 million customers in Manhattan, the Bronx, parts of Queens, and most of Westchester County[50]. - CECONY operates the largest steam distribution system in the U.S., producing and delivering approximately 15,494 million pounds of steam annually to around 1,520 customers in parts of Manhattan[51]. - O&R provides electric service to approximately 0.3 million customers in southeastern New York and northern New Jersey, covering an area of about 1,300 square miles[53]. - In 2024, 58% of the electricity and 32% of the gas delivered by CECONY was purchased by customers from other suppliers[58]. Regulatory and Compliance - The NYSPSC regulates the Utilities, setting terms of service and rates, with the authority to impose penalties for violations of state utility laws[56]. - The NYSPSC approved CECONY's and O&R's emergency response plans in April 2024, with updated plans submitted for 2025[69]. - The Federal Energy Regulatory Commission (FERC) regulates the transmission and wholesale sales of electricity and natural gas, impacting the Utilities and Con Edison Transmission[72]. - The NYSPSC has mandated a target of 6,000 MW of energy storage deployment by 2030, with additional targets of 12,000 MW by 2040 and 17,000 MW by 2050[179]. Environmental and Sustainability Initiatives - The company emphasizes its mission to provide energy services safely and efficiently while improving community quality of life[23]. - CECONY's estimated Scope 1 GHG emissions for 2024 are 2.7 million metric tons, consistent with previous years[194]. - Con Edison has achieved a more than 55% reduction in direct GHG emissions from a 2005 baseline of 6.0 million metric tons[195]. - The Utilities billed customers clean energy fund surcharges of $277 million, $224 million, and $216 million in 2024, 2023, and 2022, respectively[197]. Infrastructure and Technology Development - The company is focusing on expanding its electric and gas facilities to meet growing demand, with plans for new infrastructure investments[41]. - CECONY's capitalized costs for utility plant, net of accumulated depreciation, for distribution facilities increased to $23,770 million in 2024 from $23,238 million in 2023[79]. - CECONY's electric generating facilities have a combined electric nameplate capacity of approximately 634 MW, with sufficient gas and fuel oil expected for 2025[83]. - CECONY's transmission facilities include 490 miles of overhead circuits and 760 miles of underground circuits, ensuring robust infrastructure for electricity delivery[81]. - CECONY's total distribution-level distributed generation (DG) capacity connected to the Utilities' systems increased to 1,085 MW in 2024, up from 924 MW in 2023, marking a 17.4% growth[77]. Future Outlook and Strategic Initiatives - Con Edison anticipates that the Utilities will continue to provide substantially all of its earnings over the next few years, supported by approved rate plans[24]. - Future outlook indicates a projected growth rate of 15% in electric operations for the next fiscal year[41]. - The company is investing in new technologies to enhance reliability and efficiency in electric supply, aiming for a 10% improvement in service delivery[41]. - Market expansion strategies include entering new geographic regions, targeting a 20% increase in market share over the next two years[41]. - The company is exploring potential acquisitions to bolster its gas operations, with a focus on enhancing service capabilities[41]. Legal and Liability Issues - CECONY's potential liability for the completion of site investigation and cleanup of known contamination on manufactured gas plant sites could range from $622 million to $2,432 million[205]. - CECONY's potential liability for the Astoria site cleanup is estimated to range from $278 million to $929 million[206]. - A lawsuit filed in October 2024 estimates total cleanup costs at the Gowanus Canal Superfund Site to exceed $1,000 million[211]. - CECONY is unable to estimate its total exposure to liability for the Gowanus Canal Superfund Site[212].