Consolidated Edison, Inc. · NYSE:ED
Consolidated Edison — Barclays Capital CEO Energy-Power Conference 2013
24 slides from Consolidated Edison's conference presentation, Sep 12, 2013
Slide 1: Con Edison, Inc. Barclays Capital CEO Energy-Power Conference
Con Edison, Inc. September 12, 2013 Barclays Capital CEO Energy-Power Conference 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation includes certain forward-looking statements intended to qualify for safe-harbor provisions of the Federal securities laws. Forward-looking statements are statements of future expectation and not facts. Words such as "expects," "estimates," "anticipates,"
Slide 3: A Compelling Dividend Record: 39 Consecutive Years of Dividend Increases
A Compelling Dividend Record: 39 Consecutive Years of Dividend Increases Annualized Dividend 1975 - 2013 Dividend Payout Ratio 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 3
Slide 4: Regulated Transmission and Distribution Focused
Regulated Transmission and Distribution Focused Con Edison, Inc. (ED) 2012 EPS $3.88* Rate Base: $22.1 billion Market Cap: $18.6 billion Regulated Utilities Orange and Rockland 2012 EPS $0.22 Con Edison of New York 2012 EPS $3.46 Competitive Energy Businesses Con Edison Con Edison Con Edison Solutio
Slide 5: Solar Investment Portfolio by Geography and Off-taker
Con Edison Development Solar Investment Portfolio by Geography and Off-taker Current Solar Ownership (> 3MW) by Geography Current Solar Ownership by Off-Take Type (% Based on MWs of Capacity) 16% 84% PPA Off-take Non-PPA Off-take West includes projects in California, Nevada and Arizona. Chart exclud
Slide 6: Regulated Utilities are the Core of Con Edison, Inc.
Regulated Utilities are the Core of Con Edison, Inc. Con Edison of New York (CECONY) • 3.3 million electric customers • 1.1 million gas customers • 1,717 steam customers • 706 MW of regulated generation CECONY and O&R • Delivered 40% of NYS 2012 delivered 43% of electric peak consumption NYS 2012 el
Slide 7: Composition of Rate Base
Composition of Rate Base (as of June 30, 2013) Rate Base* ($ millions) Con Edison of New York Electric (NY) $ 16,328 Gas (NY) $ 3,300 Steam (NY) $ 1,515 Total CECONY $ 21,143 Orange and Rockland Pike Gas (PA) $ 2 Pike Electric (PA) $ 13 Rockland Electric (NJ) (distribution) $ 158 (transmission) $ 20
Slide 8: New York Public Service Commission (NY PSC)
New York Public Service Commission (NY PSC) Commissioners Audrey Zibelman (D) Gregg Sayre (D) Diane Burman (R) Patricia Acampora (R) Chair Garry Brown (D) Feb-2018 Feb-2018 Feb-2018 Feb-2015 Feb-2015 Appointed June Appointed June Appointed June Appointed Dec Appointed June 2005 2012 2013 2013 2007 P
Slide 9: Features of New York Regulation
Features of New York Regulation • Forward-looking test year for expenses and rate base • True-ups for major expenses: – Fuel and power cost recovery (most) – Pensions and Other Post-employment Benefits – Property taxes (partial) – Environmental clean-up costs – Interest on long-term borrowing • Reve
Slide 10: Key Provisions of 2013 Electric, Steam and Gas Rate Filing
Con Edison of New York Key Provisions of 2013 Electric, Steam and Gas Rate Filing • Proposing programs intended to reduce service outages from major storms, as well as improve the storm recovery process – plans for $1 billion of storm hardening capital expenditures through 2016 (electric: $800 milli
Slide 11: 2013 Electric, Gas and Steam Rate Filings
Con Edison of New York 2013 Electric, Gas and Steam Rate Filings (13-E-0030, 13-G-0031, 13-S-0032) • Filed on January 25, 2013 • Historic test year: Twelve months ended June 30, 2012 • Forward test year: January 1, 2014 – December 31, 2014 • New rates in effect January 1, 2014 • Timeline for rate se
Slide 12: Con Edison Resilience Collaborative
Con Edison of New York Con Edison Resilience Collaborative The Collaborative, which was proposed by the PSC Staff, was initiated to provide input on resiliency projects in the current Con Edison budget, and to develop long-term resiliency initiatives for 2014 and beyond. Four Working Groups establis
Slide 13: NYSPSC's Formulaic Approach to ROE
NYSPSC’s Formulaic Approach to ROE Recent Rate Decisions in New York (2010-2013) Date Company ROE Term Mar-2010 CECONY Electric 10.15% 3 years Jun-2010 Central Hudson 10.00% 3 years Oct-2010 CECONY Gas / Steam 9.60% 3 years Oct-2010 Energy East (RGE /NYSEG) 10.00% 40 months Jan-2011 Niagara Mohawk E
Slide 14: Comparison of NYSPSC Staff Filings and CECONY's Rebuttal
Con Edison of New York Comparison of NYSPSC Staff Filings and CECONY’s Rebuttal ($ millions) Electric Gas Steam RY (Jan ’14 – Dec ’14) CECONY Staff CECONY Staff CECONY Staff Infrastructure $185 $145 $53 $26 ($13) $(5) Pension and healthcare 75 51 24 19 10 8 Depreciation rates 75 (42) (5) (32) 12 9 O
Slide 15: 5-Year Annualized Growth Rates in Peak Usage
5-Year Annualized Growth Rates in Peak Usage 5-Year Historical Current 2002-2007 5-Year (Pre-Recession) Forecast CECONY Electric 1.8% 1.3% Gas 1.0% 3.8% Steam (0.8)% (0.6)% O&R Electric 2.6% 0.9% Gas (0.8)% 0.7% 15
Slide 16: Market for Multi-Family and Commercial Oil-to-Gas Conversions by Oil Type
Con Edison of New York Market for Multi-Family* and Commercial Oil-to-Gas Conversions by Oil Type January 2011 to July 2013 Completed Conversions 4,200 customers Total Conversion Potential #6 Oil 705 converted, 17% as of December 2010 2,800 customers #4 Oil 419 converted, 15% 14,000 customers** #2 O
Slide 17: Gas Infrastructure Investment Forecast
Con Edison of New York Gas Infrastructure Investment Forecast ($ millions) $600 $500 $99 $90 $108 $400 $300 $446 $200 $407 $365 $100 $0 2013 2014 2015 Other Oil-to-Gas Conversion 17
Slide 18: Infrastructure Investment
Con Edison of New York Electric Gas Steam Depreciation Infrastructure Investment Actual 2008 1,743 338 121 672 ($ millions) 2009 1,596 339 122 744 2010 1,421 334 111 787 2011 1,354 335 89 829 2012 1,375 426 108 894 $2,500 Forecast 2013 1,447 473 110 949 2014 1,496 497 84 1,007 2015 1,650 545 96 1,06
Slide 19: Infrastructure Investment: Orange and Rockland
Orange and Rockland Infrastructure Investment Electric Gas Depreciation Actual ($ millions) 2008 88 32 40 2009 85 42 42 2010 99 36 44 2011 79 32 48 $160 2012 98 39 53 Forecast 2013 108 34 58 $140 2014 107 33 63 2015 92 33 66 $120 $100 $80 Gas $60 Electric Depreciation $40 $20 $0 2008 2009 2010 2011
Slide 20: Consolidated Edison, Inc. Rate Base Growth
Consolidated Edison, Inc. Rate Base Growth ($ millions) Pike (PA) 21,760 21,311 RECO (NJ) 5-year CAGR 20,545 19,605 (2007-2012) 5.95% O&R Gas (NY) 18,077 16,298 O&R Electric (NY) 14,757 CECONY Steam (NY) 13,453 12,418 CECONY Gas (NY) 11,087 11,231 11,869 CECONY Electric (NY) 2001 2002 2003 2004 2005
Slide 21: NY PSC Response to NY Energy Highway Blueprint: AC Transmission
NY Public Service Commission Response to NY Energy Highway Blueprint: New & Upgraded AC Transmission • Proceeding to examine proposals for AC transmission upgrades and new transmission lines to address congestion on the transmission system between Utica and NYC (12-T-0502) • 16 transmission projects
Slide 22: NY PSC Response to Energy Highway Blueprint: Indian Point Contingency
NY Public Service Commission Response to NY Energy Highway Blueprint: Indian Point Contingency • Proceeding soliciting Indian Point Contingency Plan (12-E-0503) • Filed by ConEd and NYPA on February 1, 2013 • The plan contemplates two parallel solution paths: a) Transmission Owner Transmission Solut
Slide 23: NY Transco Proposed Projects for AC Transmission Upgrades
NY Transco Proposed Projects for AC Transmission Upgrades and Indian Point Contingency • $1.3 billion investment for AC Transmission Upgrade • $300 million additional investment for Staten Island Un-bottling Marcy - New Scotland Marcy South Series UPNY/SENY Compensation Interface Upgrade Oakdale - F
Slide 24: Consolidated Edison, Inc. Investment Thesis
Consolidated Edison, Inc. Investment Thesis • The largest of the few publicly-traded, T&D-focused utility companies – Limited commodity exposure • Reduced regulatory lag – Forward-looking test years – Timely recovery of most fuel and commodity costs – Revenue decoupling mechanism in NY (electric and
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