Consolidated Edison, Inc. · NYSE:ED
Consolidated Edison — Edison Electric Institute Financial Conference 2022
20 slides from Consolidated Edison's conference presentation, Nov 13, 2022
Slide 1: Edison Electric Institute Financial Conference Presentation
Consolidated Edison, Inc. Edison Electric Institute Financial Conference Presentation November 13-15, 2022
Slide 2: Available Information, Forward-Looking Statements, Non-GAAP Financial Measures
Available Information On November 3, 2022, Consolidated Edison, Inc. issued a press release reporting its third quarter 2022 earnings and filed with the Securities and Exchange Commission the company’s third quarter 2022 Form 10-Q. This presentation should be read together with, and is qualified in
Slide 3: Organizational Structure Focuses on Regulated T&D
Organizational Structure Focuses on Regulated T&D Market Cap(a): $30.4 billion Ratings(b): Baa2 / BBB+ / BBB+ Outlook(b): Stable / Stable / Stable Regulated Energy Delivery FERC Regulated Transmission Unregulated Clean Energy Consolidated Con Edison Con Edison Edison Orange and Transmission, Inc. Cl
Slide 4: Summary of CECONY Electric & Gas Filing
Summary of CECONY Electric & Gas Filing - Company Update On January 28, 2022, CECONY submitted to the NYSPSC a rate case in support of new electric and gas rates to become effective January 1, 2023. On April 8, 2022, CECONY filed an update to the January 28, 2022 request. On May 20, 2022, the New Yo
Slide 5: CECONY Electric & Gas Rate Filing Comparison and Timeline
CECONY Electric & Gas Rate Filing Comparison and Timeline Electric Gas ($ in millions) Case number 22-E-0064 Case number 22-G-0065 Rate Year 1: Jan 2023 – Dec 2023 Jan 2022 Apr 2022 Staff Jan 2022 Apr 2022 Staff Filing Update Testimony Filing Update Testimony New infrastructure investment $250 $266
Slide 6: Anticipated Regulatory Calendar
Anticipated Regulatory Calendar Key Dates Rate Case Filings CECONY Electric & Gas (Cases 22-E-0064 & 22-G-0065) Filing Submitted January 28, 2022 Update Filing Submitted April 8, 2022 Staff and Intervenor Testimony May 20, 2022 Proposed Effective Date for New Rates January 1, 2023 RECO Transmission
Slide 7: New York State Public Service Commission
New York State Public Service Commission Commissioners Rory Christian Chair and CEO Term ends: Feb-2027 Appointed: Jun-2021 Diane Burman James Alesi John Howard Tracey Edwards David Valesky John Maggiore Term ends: Feb- Term ends: Feb- Term ends: Feb- Term ends: Feb- Term ends: Feb- Term ends: Feb-
Slide 8: NYSPSC's Formulaic ROE Approach: Decisions 2009 – 2022 YTD
Rate of return on equity NYSPSC’s Formulaic ROE Approach(a): Decisions 2009 – 2022 YTD 2/3 Discounted Cash Flow model + 1/3 Capital Asset Pricing model Date Company ROE Term Date Company ROE Term 04/09 CECONY Electric 10.00% 1 year 05/14 National Fuel Gas 9.10% 2 years 05/09 Niagara Mohawk Gas 10.20
Slide 9: NYSPSC Staff's Formulaic Approach to Returns on Equity
NYSPSC Staff’s Formulaic Approach to Returns on Equity Discounted Cash Flow Model (2/3 weighting) • The Staff employs a dividend discount model D1 D2 D3 Value = (1+R) + (1+R)2 + (1+R)3 +…… • Solving for an equity return, R, where: – D1 through D4 = Value Line estimates – D5 through D∞ = Value Line e
Slide 10: NYC is Climbing Back from the Ravages of the Pandemic
NYC is Climbing Back from the Ravages of the Pandemic NYC’s diverse economy as well as surrounding service area continues to recover as City remains a global financial hub and cultural attraction New York City metro areas added 450,000 jobs over the past year – almost 200,000 more jobs than runner
Slide 11: NYC's Resilient Economy
NYC’s Resilient Economy NYC continues to build to foster a vibrant, diverse economy that can withstand the impacts of climate change Service area building permits are 15% higher than pre-pandemic levels (July 2022 compared to July 2019) – New Park Avenue global headquarters for JP Morgan Chase is
Slide 12: Overview of CEB Sale and Use of Proceeds
Overview of CEB Sale and Use of Proceeds Con Edison has concluded its strategic review of the Con Edison Clean Energy Businesses (CEBs) and has reached an agreement to sell the CEBs to a subsidiary of RWE Aktiengesellschaft (RWE) Transaction Overview Key Transaction Milestones Con Edison has reach
Slide 13: Estimated CEBs Sale Price Adjustments
Estimated CEBs Sale Price Adjustments Con Edison estimates net after-tax proceeds of approximately $3.6 billion to $3.8 billion from the transaction BASE PURCHASE PRICE: $6,800 Million Cash & Cash Equivalents, Indebtedness, Transaction + Certain Cash & Cash Equivalents Expenses and Net Working Capit
Slide 14: The Pillars of our Expanded Clean Energy Commitment
The 5 Pillars of our Expanded Clean Energy Commitment We will take a leadership role in the delivery of a clean energy future for our customers by investing in, building, and operating reliable, resilient, and innovative energy infrastructure, advancing electrification of heating and transportation
Slide 15: CECONY Long Range Plans Incorporate Our Clean Energy Commitment
CECONY Long Range Plans Incorporate Our Clean Energy Commitment Investing in our system to maintain a safe, reliable and sustainable future Long-Range Plans for electric, gas and steam are the strategic framework and roadmap that guide our programs and investments over the 2050 planning horizon. The
Slide 16: Dividend and Earnings Announcements
Dividend and Earnings Announcements • On November 3, 2022, the company issued a press release forecasting its adjusted earnings per share for the year 2022 to be in the range of $4.50 to $4.60 a share.(a)(b) • On October 20, 2022, the company issued a press release reporting that it had declared a q
Slide 17: Inflation Reduction Act Furthers Clean Energy Transition
Inflation Reduction Act Furthers Clean Energy Transition The IRA was signed into law on August 16, 2022, and certain provisions are not expected to have a material impact on Con Edison and subsidiaries Clean Energy Transition Alternative Minimum Tax • Act allocates $369 billion to clean energy • New
Slide 18: Appendix
Appendix ED (© conEdison, inc. NYSE
Slide 19: Clean Energy Businesses Assets and Liabilities
Clean Energy Businesses Assets and Liabilities CEBs assets and liabilities as of September 30, 2022 presented as if on a held-for-sale basis, excluding certain intercompany and net deferred tax liability balances, as follows: Assets Liabilities ($ in millions) As of ($ in millions) As of 09/30/2022
Slide 20: Reconciliation of Net Income to Adjusted EBITDA for Con Edison Clean Energy Businesses (CEBs)
Reconciliation of Net Income to Adjusted EBITDA for Con Edison Clean Energy Businesses (CEBs) Reconciliation of net income for common stock to adjusted EBITDA (Non-GAAP)* * For the CEBs, reconciliation of net income for common stock to adjusted earnings before interest, taxes, depreciation and amort
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