Consolidated Edison, Inc. · NYSE:ED
Consolidated Edison — EEI Financial Conference 2019
27 slides from Consolidated Edison's conference presentation, Nov 12, 2019
Slide 1: EEI Financial Conference Presentation
EEI Financial Conference Presentation November 12, 2019
Slide 2: Available Information and Forward-Looking Statements
Available Information On November 4, 2019, Consolidated Edison, Inc. issued a press release reporting its third quarter 2019 earnings and filed with the Securities and Exchange Commission the company’s third quarter 2019 Form 10-Q. This presentation should be read together with, and is qualified in
Slide 3: Organizational Structure
Organizational Structure Market Cap(a): $31.4 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: 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 12-Month Trailing Ea
Slide 5: Opportunities for Growth Across Our Businesses
Opportunities for Growth Across Our Businesses 2019 – 2021 Forecasted Capital Investment $10.3 billion $1.0 billion $0.2 billion Regulated Utilities Clean Energy Regulated Businesses Transmission 5
Slide 6: 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 7: Summary of CECONY Electric & Gas Joint Proposal
Summary of CECONY Electric & Gas Joint Proposal On October 18, 2019, CECONY, NYPSC staff and other parties entered into a Joint Proposal, which is subject to NYSPSC approval for electric and gas delivery service. Proposed Return on Equity and Equity Ratio Return on equity……………..8.8% Equity ratio…………
Slide 8: Overview of CECONY Joint Proposal
Overview of CECONY Joint Proposal • Electric and gas capital investment of $6.2 billion and $3.1 billion over three years, respectively • 10-year recovery of and earned return on clean energy transition project costs ‒ Energy efficiency ‒ Demonstration projects ‒ Non-wire alternatives projects ‒ Off
Slide 9: CECONY Electric & Gas Joint Proposal – Capital Investment
CECONY Electric & Gas Joint Proposal – Capital Investment Electric capital investment includes: • $3.4 billion investment in reliability and system expansion • $222 million investment in grid innovation • $75 million investment in storm hardening for Westchester overhead distribution Gas capital inv
Slide 10: Enhancing the Customer Experience Through Smart Systems
Enhancing the Customer Experience Through Smart Systems • Continuation of $1.4 billion smart meter initiative targeting 5.3 million installations in New York City, Westchester and New Jersey areas by 2022 ‒ More than 2 million smart meters installed to date • $421 million new Customer Service System
Slide 11: Our Energy Efficiency Programs Lower Customer Bills
Our Energy Efficiency Programs Lower Customer Bills Proposed energy efficiency spending aligns with goals of New Efficiency: New York initiative CECONY Electric & Gas Energy Efficiency Budgets ($ in millions) Electric Gas Approved Proposed* *2020-2022 amounts subject to the New Efficiency: New York
Slide 12: Energy Efficiency Also Contributes to Cleaner Air by Lowering Emissions
Energy Efficiency Also Contributes to Cleaner Air by Lowering Emissions 2.7 million metric tons of carbon dioxide equivalent expected to be avoided from 2019 to 2022 energy efficiency efforts, assuming measures persist year to year CECONY Electric Energy CECONY Gas Energy Efficiency Targets (MWh) Ef
Slide 13: New York State Environmental Goals Include Energy Efficiency
New York State Environmental Goals Include Energy Efficiency New York State energy efficiency goals aim to reduce greenhouse gas emissions, decrease customer energy costs and create job opportunities New Efficiency: New York Order (Case 18-M-0084) • The New Efficiency: New York Order is a collaborat
Slide 14: CECONY Joint Proposal Includes Electrification of Transportation
CECONY Joint Proposal Includes Electrification of Transportation Electric vehicle infrastructure and customer incentives pave the way for electric vehicle ownership in our service territory • Joint Proposal includes electric vehicle programs ‒ $30 million program to provide interconnection for new p
Slide 15: Earnings Adjustment Mechanisms and Positive Incentives
Earnings Adjustment Mechanisms and Positive Incentives Joint Proposal includes potential additional return on equity for each rate year of up to 48 basis points for CECONY electric and 42 basis points for CECONY gas based on proposed annual rate base for each service Earnings Adjustment Mechanisms (
Slide 16: Operational Excellence: Reliability is What Our Customers Demand
Operational Excellence: Reliability is What Our Customers Demand 99.993%* CECONY provides the best electric system reliability in the U.S. *Overall (network and non-network) System Availability Index for 2019 year to date through August Link to Con Edison Sustainability Report: https://www.conedison
Slide 17: CECONY Commitment to Climate Resilience
CECONY Commitment to Climate Resilience The Joint Proposal outlines actions to address climate change • Install weather data sensors and river and soil temperature sensors in our service territory by April 30, 2020 for the purpose of collecting and analyzing data • Complete and file detailed plans f
Slide 18: Ambitious New York State Environmental Goals
Ambitious New York State Environmental Goals New York State clean energy initiatives create a path to carbon neutrality New York State Climate Leadership and Community Protection Act (CLCPA) was signed into law on July 18, 2019 • 70% renewable electricity by 2030 • 100% carbon-free power by 2040 • 4
Slide 19: Average Rate Base Balances
Average Rate Base Balances $33,872 $31,930 $30,211 $28,515 $25,014 $26,014 $23,795 $24,522 O&R CECONY Actual Forecast ($ in millions) 2014 2015 2016 2017 2018 2019E 2020E (a) 2021E(a) Electric $ 17,403 $ 17,599 $ 17,971 $ 18,513 $ 20,057 $ 20,845 $ 21,660 $ 22,783 CECONY Gas 3,593 4,023 4,267 4,723
Slide 20: CEB Utility-Scale Renewable Energy Production Projects
CEB Utility-Scale Renewable Energy Production Projects Geography (MW) Solar PV Asset Ownership (GW) Source: Company information and IHS EER (as of year-end 2018). Off-Takers (MW) Portfolio Mix (MW) Wind 15% Solar 85% Source: Pie charts based on Company information as of September 30, 2019. 20
Slide 21: Con Edison Transmission
Con Edison Transmission • Proposed $600 million NY Energy Solution project approved in April 2019 with target year-end 2023 in-service date (excludes electrical interconnection costs) • 10% allowed return on common equity and actual common equity ratio up to 53% for NY Transco’s $214 million existin
Slide 22: Dividend Growth for Shareholders
Dividend Growth for Shareholders • 45 consecutive years of dividend increases • Accelerated growth over past five years • Target dividend payout range: 60 – 70% of adjusted earnings 5-year CAGR (2015-2019) 3.3% 5-year CAGR (2010-2014) 1.3% $2.96* $2.86 $2.76 $2.68 $2.60 $2.46 $2.52 $2.38 $2.40 $2.42
Slide 23: 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 – $56 billion asset base • Steady earnings, growing dividend – 45 consecutive years of dividend growth • Attractive capex opportunities – Three-year infrastr
Slide 24: Appendix
APPENDIX ED (} conEdison, inc. NYSE
Slide 25: Trailing 12 Months Ended September 30, 2019
Trailing 12 Months Ended September 30, 2019 CECONY O&R CEBs CET Other(d) Total Reported EPS – GAAP basis $3.71 $0.20 $0.21 $0.16 $(0.03) $4.25 HLBV effects of the Clean Energy Businesses (pre-tax) — — 0.25 — — 0.25 Income taxes (a) — — (0.07) — — (0.07) HLBV effects of the Clean Energy Businesses (n
Slide 26: Earnings Adjustment Mechanisms Promote Energy Efficiency and Clean Technologies
Earnings Adjustment Mechanisms Promote Energy Efficiency and Clean Technologies Earned Adjustment Mechanism Description Goal Reduce unit costs for energy efficiency (“EE”) Share the Savings Lifetime MMBtu savings unit cost reductions portfolio by reducing the unit cost of lifetime energy Electric /
Slide 27: Positive Incentives Promote Safety and Customer Service
Positive Incentives Promote Safety and Customer Service Positive Incentive Description Goal Residential Meet targets for residential service Electric / Gas Service Targets for residential service terminations, bad debt write-offs and Termination / terminations, bad debt write-offs and arrears each r