Consolidated Edison, Inc.'s (ED) CEO Timothy Cawley Presents at Wolfe 2021 Utilities, Midstream & Clean Energy Conference (Transcript)

Consolidated Edison, Inc. (ConEd) Conference Call Summary Company Overview - Company: Consolidated Edison, Inc. (NYSE:ED) - Industry: Utilities, specifically focusing on electric and gas services - Key Participants: Timothy Cawley (CEO), Steven Fleishman (Wolfe Research) Key Investment Highlights - ConEd has a long history of reliability and financial stability, serving 3.5 million customers in New York City for nearly 200 years [3][4] - The company boasts the longest streak of dividend increases among utilities, with 47 consecutive years [3] - ConEd is recognized for its superior electric reliability, being eight times more reliable than the national average [4] Environmental, Social, and Governance (ESG) Initiatives - ConEd is the second largest solar producer in North America and the seventh largest globally [5] - The company has a strong commitment to environmental stewardship, having introduced energy efficiency initiatives over 50 years ago [5] - Recent innovations include remote methane detectors for enhanced safety [6] - The board is diverse and focused on long-term planning, climate change, and diversity metrics in executive compensation [7] Investment Plans and Financial Outlook - ConEd plans to invest $1 billion over the next five years in transmission to enhance grid capabilities for renewable energy [8] - An additional $1 billion is earmarked for solar and wind projects [8] - The company aims to lead the transition to clean energy, which is expected to provide significant investment opportunities [8] Regulatory Environment and Challenges - New York's regulatory landscape is challenging, impacting stock performance and investment recognition [10] - ConEd has filed a petition to recover approximately $70 million in late payment charges due to COVID-19 impacts [10][28] - The company is optimistic about recovering lost revenue from late payment charges [28] Clean Energy Transition - ConEd has a robust pipeline of clean energy projects, with 2,700 megawatts currently operational and an additional 3,000 megawatts in various stages of development [11] - The company is focused on mitigating climate change through clean energy initiatives and infrastructure resilience [12][14] - Plans include investing in energy efficiency and electric vehicle infrastructure, with a projected $1.5 billion investment over the next five years [20] Future Growth and Profitability - ConEd is targeting a growth rate of 4% to 6%, with potential for higher returns through clean energy investments [56] - The company is exploring opportunities in battery storage and renewable natural gas as part of its transition strategy [39][54] - ConEd is also looking to enhance profitability through regulatory recovery and improved operational efficiencies [59] Market and Competitive Landscape - The company views residential solar and battery installations as complementary rather than competitive, aiming to facilitate their integration into the grid [48] - ConEd anticipates a shift towards electrification of heating and transportation, which will increase electricity demand [50][52] Conclusion - ConEd is positioned to capitalize on the clean energy transition while addressing regulatory challenges and enhancing shareholder returns through strategic investments and operational improvements [57][64]