Consolidated Edison, Inc. · NYSE:ED
Consolidated Edison — Investor Presentation (June 2019)
41 slides from Consolidated Edison's investor presentation, June 2019
Slide 1: June 2019 Investor Meetings
June 2019 Investor Meetings GconEdison
Slide 2: Available Information, Forward-Looking Statements, Non-GAAP Financial Measure
Available Information This presentation should be read together with, and is qualified in its entirety by reference to, the Form 10-K for the year ended December 31, 2018 and the Form 10-Q for the quarterly period ended March 31, 2019. Copies of the Form 10-K and Form 10-Q are available at: www.cone
Slide 3: Organizational Structure
Organizational Structure Market Cap(a): $27.7 billion Ratings(b): Baa1 / BBB+ / BBB+ Outlook(b): Stable / Stable / Stable Utilities Transmission Clean Energy Con Edison Con Edison Consolidated Clean Energy Orange and Transmission, Edison Businesses, Rockland Inc. Company of Inc. New York, Inc. Utili
Slide 4: Complementary Business Mix with Utilities
Complementary Business Mix with Utilities 2018 GAAP EPS Contribution 2018 Adjusted EPS Contribution (Non-GAAP) (a) Regulated Utilities 92% 93% Clean Energy 10% 5% Transmission 3% 3% (5)% Other (b) (1)% a. Represents Adjusted Earnings per Share. Please see slide 34 for reconciliation to GAAP. b. Incl
Slide 5: Long-Range Plan – Complementary Business Mix
Long-Range Plan – Complementary Business Mix • Core utility business expected to continue to dominate the business mix • Investment in contracted renewables expected to complement utility growth • Transmission infrastructure investment opportunities expected to contribute to EPS 2018 Adjusted Earnin
Slide 6: Opportunities for Growth Across Our Businesses
Opportunities for Growth Across Our Businesses 2019 – 2021 Forecasted Capital Investment(a) $10.9 billion $1.0 billion $0.2 billion Regulated Utilities Clean Energy Regulated Businesses Transmission a. From 2018 Form 10-K, page 33. 6
Slide 7: The Con Edison Plan
The Con Edison Plan Customer Focused Strategic Value Oriented Provide safe and Strengthen core utility Provide steady, reliable service delivery business predictable earnings Enhance the Pursue additional Maintain balance customer experience regulated growth sheet stability opportunities to add valu
Slide 8: Safety is our #1 Priority
Safety is our #1 Priority • CECONY and O&R have achieved 60% and 69% reductions in recorded injuries and illnesses since 2009 • 88% of all Company work groups completed 2018 without a recordable injury • Our objective: accident-free workplace Link to Con Edison Sustainability Report: https://www.con
Slide 9: Risk-based Capital Investment Approach
Risk-based Capital Investment Approach • We plan to invest over $3 billion between 2019 and 2021 to fortify CECONY and O&R gas infrastructure, reducing risk and underscoring our commitment to safety and the environment • Over the course of the past 20 years, the O&R team has replaced more than 370 m
Slide 10: CECONY's Sustained Performance on Main Replacement and Leak Backlog
CECONY’s Sustained Performance on Main Replacement and Leak Backlog CECONY Gas Main Replacement (miles) CECONY Year-End Leak Backlog 950 91.8 86.3 850 Actual 79.1 75.2 750 66.8 740 600 550 523 85 80 70 65 60 Goal Goal 303 239 250 Actual 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 Link to Con E
Slide 11: Deploying New Technologies to Enhance Public Safety
Deploying New Technologies to Enhance Public Safety • A Con Edison team rolled out the first of its kind smart-meter- enabled natural gas detectors to improve gas-customer safety by providing alerts of potentially unsafe conditions to our Gas Control Center • We have deployed 4,000 sensors for early
Slide 12: Operational Excellence: Reliability is What Our Customers Demand
Operational Excellence: Reliability is What Our Customers Demand 99.996% CECONY provides the best electric system reliability in the U.S. Link to Con Edison Sustainability Report: https://www.conedison.com/ehs/2018-sustainability-report/ 12
Slide 13: Ambitious New York State Environmental Goals
Ambitious New York State Environmental Goals New York State Green New Deal proposal announced on January 17, 2019 New York State Green New Deal Goals • 100% carbon-free power by 2040 • 70% renewable electricity by 2030 • 40% carbon emissions reductions by 2030 • 80% carbon emissions reductions by 20
Slide 14: Supporting New York's Energy Storage Goals
Supporting New York’s Energy Storage Goals Energy storage can help ensure reliability and can reduce peak demand on our electric system • In 2018, CECONY commissioned its first battery installation designed for 2 MW / 12 MWh battery in Ozone Park, Queens to support the Brooklyn Queens Demand Managem
Slide 15: Easing Access to Distributed Resources for Customers
Easing Access to Distributed Resources for Customers • 32,000 solar customers across our utility service areas • Working to ensure a seamless connection process • Providing solar energy to low-income residents • Introduced innovative device connecting solar panels and electric vehicles to home meter
Slide 16: Supporting Electric Vehicles
Supporting Electric Vehicles • Vehicle-to-grid school bus demonstration project in White Plains, NY includes five electric school buses that will be used for grid services in the summer • Providing incentives to charge during off-peak hours to reduce system peak load • Working with NYC Department of
Slide 17: Enhancing the Customer Experience Through Smart Systems
Enhancing the Customer Experience Through Smart Systems • Launched $1.4 billion smart meter initiative targeting 5.3 million installations in New York City, Westchester and New Jersey areas by 2022 • More than 1.2 million smart meters installed to date • Website and digital customer experience lever
Slide 18: Emphasis on Energy Efficiency and Demand Response
Emphasis on Energy Efficiency and Demand Response Technology is providing customers with new ways to reduce energy use 1.98 million MWh of cumulative electric utility customer energy savings since 2009 2.74 million dekatherms of cumulative gas utility customer energy savings since 2009 18
Slide 19: Our Energy Efficiency Programs Lower Customer Bills
Our Energy Efficiency Programs Lower Customer Bills CECONY Electric & Gas Energy Efficiency Budgets ($ millions) $209.4 $193.7 $181.1 Electric $141.3 $135.2 $106.7 $36.8 $40.2 $30.3 $20.3 $20.3 $14.5 Gas 2017 2018 2019 2020 2021 2022 Approved Proposed 19
Slide 20: Energy Efficiency Also Contributes to Cleaner Air by Lowering Emissions
Energy Efficiency Also Contributes to Cleaner Air by Lowering Emissions Electric Energy Efficiency Gas Energy Efficiency Targets (MWh) 565,359 Targets (Dth) 859,462 485,584 795,462 776,224 434,444 375,798 606,924 606,924 300,000 197,778 303,462 2017 2018 2019E 2020E 2021E 2022E 2017 2018 2019E 2020E
Slide 21: Smart Solutions for Natural Gas Customers
Smart Solutions for Natural Gas Customers $223 million in funding through 2025 approval by NYSPSC in February 2019 to offset 84,100 dekatherms of peak-day gas usage* (avoiding 5 million tons of CO2 over life of program) 1. Enhanced Gas Energy Efficiency – Incent customers to install energy efficient
Slide 22: Summary of CECONY Electric & Gas Rate Filings
Summary of CECONY Electric & Gas Rate Filings(a) Rate Change and Capital Expenditures Electric Gas Case number 19-E-0065 Case number 19-G-0066 Rate Rate Capital Rate Rate Capital ($ millions) Change Base (b) Expenditure Change Base (b) Expenditure Rate Year 1: 2020 $470 $21,836 $2,322 $206 $7,193 $1
Slide 23: CECONY Electric & Gas Rate Filings
CECONY Electric & Gas Rate Filings Key Drivers of Proposed 2020 Electric Rate Increase Note: 2020 amounts were proposed in a January 2019 filing. In April 2019, CECONY preliminarily updated its January 2019 request to the NYSPSC. In June 2019, CECONY filed a rebuttal and updated testimony to the NYS
Slide 24: CECONY Electric & Gas Rate Filings (cont'd)
CECONY Electric & Gas Rate Filings (cont'd) Key Drivers of Proposed 2020 Gas Rate Increase Note: 2020 amounts were proposed in a January 2019 filing. In April 2019, CECONY preliminarily updated its January 2019 request to the NYSPSC. In June 2019, CECONY filed a rebuttal and updated testimony to the
Slide 25: CECONY Electric Rate Case – Comparison of Filings
CECONY Electric Rate Case – Comparison of Filings ($ millions) Electric case number 19-E-0065 CECONY NYSPSC CECONY Jan 2019 April 2019 May 2019 June 2019 Rate Year (Jan 2020 – Dec 2020) Filing Update Staff Filing Rebuttal New infrastructure investment $271 $244 $225 $235 Financing costs -- cost of c
Slide 26: CECONY Gas Rate Case – Comparison of Filings
CECONY Gas Rate Case – Comparison of Filings ($ millions) Gas case number 19-G-0066 CECONY NYSPSC CECONY Jan 2019 April 2019 May 2019 June 2019 Rate Year (Jan 2020 – Dec 2020) Filing Update Staff Filing Rebuttal New infrastructure investment $147 $149 $142 $154 Financing costs -- cost of capital 56
Slide 27: Comparison of Rate Changes
Comparison of Rate Changes ($ millions) Rate Year (Jan 2020 – Dec 2020) Electric Gas Total Company Rate Increase (June Rebuttal) $470 $206 $676 Financing costs -- cost of capital (ROE), capital (261) (86) (347) structure Depreciation 89 19 108 O&M adjustments (130) (33) (163) Sales Revenue (71) 1 (7
Slide 28: Clean Energy Businesses
Clean Energy Businesses 2.6 GW (AC) • Located in 17 states • 85% solar • 15% wind Copper Mountain Solar 28
Slide 29: Con Edison Transmission
Con Edison Transmission Storage • 41 Bcf of natural gas storage; 99% subscribed 50% ownership • Storage position with top regional utility customers: CECONY, NJNG, PSE&G, NYSEG Pipelines • Total pipeline length of 181 miles with interconnections to Millennium, Tennessee, and Transco pipelines • 3 na
Slide 30: Environment, Social and Governance Highlights
Environment, Social and Governance Highlights 49% 2.6 GW 1.98 million 50% Reduction of Current size of MWh of cumulative Diversity on Board carbon footprint renewables portfolio, utility customer of Directors, since 2005 which avoids 5.4 savings through including 30% million tons of CO2 energy effic
Slide 31: Commitment to Climate Resilience
Commitment to Climate Resilience • $1 billion storm-resiliency investments following Superstorm Sandy completed in 2016 • $100 million commitment for storm resiliency in Westchester began in 2018 • $3 billion annual investment planned over next several years for upgrades to utility infrastructure •
Slide 32: Con Edison: Poised for a Strong Future
Con Edison: Poised for a Strong Future • One of the nation’s largest investor-owned energy-delivery companies – $12 billion in annual revenues – $54 billion asset base • Steady earnings, growing dividend – 45 consecutive years of dividend growth • Attractive capex opportunities – Three-year infrastr
Slide 33: Appendix
APPENDIX ED (} conEdison, inc. NYSE
Slide 34: 2018 EPS Reconciliation by Company
2018 EPS Reconciliation by Company Year Ended December 31, 2018 CECONY O&R CEBs CET Other(c) Total Reported EPS – GAAP basis $3.84 $0.19 $0.46 $0.15 $(0.21) $4.43 Income tax effect of the TCJA — — — — 0.14 0.14 Gain on acquisition of Sempra Solar Holdings, LLC, net of — — (0.39) — 0.03 (0.36) transa
Slide 35: 1Q 2019 vs. 1Q 2018 EPS Reconciliation by Company
1Q 2019 vs. 1Q 2018 EPS Reconciliation by Company Three Months Ended March 31, 2019 CECONY O&R CEBs CET Other(c) Total Reported EPS – GAAP basis $1.28 $0.10 $(0.12) $0.04 $0.01 $1.31 Hypothetical liquidation at book value (HLBV) effects of the — — 0.07 — — 0.07 Clean Energy Businesses (pre-tax) Inco
Slide 36: Clean Energy Businesses – PG&E Related Projects
Clean Energy Businesses – PG&E Related Projects Total Generating Capacity: 2,608 MW • 2019 forecast of adjusted earnings (Non-GAAP) of $25-35 million from PG&E-related projects (5) • Average annual O&M for PG&E-related projects: $40-$60/kW (6) • Average annual capacity factor for PG&E-related projec
Slide 37: Earnings Adjustment Mechanisms and Positive Incentives
Earnings Adjustment Mechanisms and Positive Incentives Earnings Adjustment Mechanisms ($ in millions) (d) Positive Incentives(a) (b) ($ in millions) (c) a. In 2017 and 2018, CECONY achieved positive incentives of $12 million and $11 million, respectively, one third of which, pursuant to the accounti
Slide 38: CECONY Operations and Maintenance Expenses
CECONY Operations and Maintenance Expenses ($ in millions) Departmental Other Expenses(a) Other Regulatory Fees and $76 YTD(d) Assessments (b) Health Care/ Other Employee $114 YTD(d) Benefits Pension/ OPEBs $38 YTD(d) $398 YTD(d) $33 YTD(d) (c) (c) (c) (c) a. Other Expenses generally are either reco
Slide 39: Average Rate Base Balances
Average Rate Base Balances ($ in millions) $34,312 $32,391 $29,779 $28,515 $26,014 $24,522 $25,014 $23,795 O&R CECONY Actual Forecast(a) 2014 2015 2016 2017 2018 2019E 2020E 2021E Electric $ 17,403 $ 17,599 $ 17,971 $ 18,513 $ 20,057 $ 20,546 $ 22,365 $ 23,478 CECONY Gas 3,593 4,023 4,267 4,723 5,58
Slide 40: Capital Expenditures
Capital Expenditures ($ in millions) (a) (b) Actual Forecast(c) a. 2016 includes Stagecoach JV investment of $974 million. b. 2018 includes Con Edison Development subsidiary’s purchase of Sempra Solar Holdings, LLC. c. 2018 Form 10-K, page 33. 40
Slide 41: Utility Capital Expenditures
Utility Capital Expenditures ($ in millions) Steam Gas Electric Actual Forecast(a) Annual CECONY Capital Expenditures Annual O&R Capital Expenditures Electric Gas Steam Depreciation Electric Gas Depreciation 2014 1,500 549 83 991 105 37 61 2015 1,658 671 106 1,040 114 46 68 2016 1,819 811 126 1,106
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