Consolidated Edison, Inc. · NYSE:ED
Consolidated Edison — Investor Presentation (March 2023)
27 slides from Consolidated Edison's investor presentation, Mar 21, 2023
Slide 1: Investor Update March 21, 2023
Investor Update March 21, 2023
Slide 2: Available Information and Forward-Looking Statements
Investor Relations Available Information On February 16, 2023, Consolidated Edison, Inc. issued a press release reporting its 2022 earnings and filed with the Securities and Exchange Commission the company’s 2022 Form 10-K. This presentation should be read together with, and is qualified in its enti
Slide 3: Con Edison delivers electricity, gas and steam to 5.1 million customers
Con Edison delivers electricity, gas and steam to 5.1 million customers • That's about 44% of New York State's electricity needs • CECONY's electric system is the most reliable in the U.S. • CECONY and O&R deliver natural gas to 1.2 million customers • CECONY operates the largest steam distribution
Slide 4: Achieving Clean Energy Goals
Achieving Clean Energy Goals Con Edison approaches 200th anniversary with strategic moves that position it for growth and leadership in New York's clean energy transition. • The closing of the sale of the CEBs allows Con Edison to become a pure-play regulated business – The transaction closed on Mar
Slide 5: Achieving Clean Energy Goals
Achieving Clean Energy Goals Significant progress on business priorities set Con Edison's direction and focus the company on execution in 2023 and beyond. • Joint settlement agreement reached with the parties on CECONY Electric and Gas rate filing with a 3-year ROE of 9.25% and $11.8 billion in new
Slide 6: Achieving Clean Energy Goals
Achieving Clean Energy Goals New York's aggressive clean energy goals require significant new investment in the state's energy infrastructure, creating strong growth potential for the company. Con Edison's demonstrated leadership in the clean energy transition guides the company's ESG efforts that r
Slide 7: New York and New Jersey's Clean Energy Vision
New York and New Jersey's Clean Energy Vision NYS: 6 GW of private solar NYS: 9 GW off-shore wind 2025 2035 NYC: 500 MW of energy storage NYC: City-owned non-emergency vehicles to be electric NYS/NJ: All new passenger vehicles will need to be zero-emission NYS: 40% reduction in greenhouse 2030 gas e
Slide 8: Our Clean Energy Commitment: Pillars
Our Clean Energy Commitment: 5 Pillars Build the grid of the future. Empower all of our customers to meet their climate goals. Reimagine the gas system. Lead by reducing our company's carbon footprint. Partner with our stakeholders. Full Version: Clean Energy Commitment 8
Slide 9: Rate Filing Update
Rate Filing Update 9
Slide 10: Summary of CECONY Electric & Gas Joint Proposal
Summary of CECONY Electric & Gas Joint Proposal(a) Proposed Rate Changes and Capital Expenditures Joint proposal reflects ROE at 9.25% and equity ratio of 48% Electric Gas Case number 22-E-0064 Case number 22-G-0065 Average Capital Average Capital ($ in millions) Rate Change Rate Base Expenditure Ra
Slide 11: Summary of CECONY Steam Rate Filing
Summary of CECONY Steam Rate Filing On November 22, 2022, CECONY filed a request with the NYSPSC for a steam rate increase, effective November 1, 2023. On February 10, 2023, CECONY filed an update to the November 2022 request. The most recent steam rate filing was in 2013, for a 3-year rate plan tha
Slide 12: CECONY Steam Rate Filing
CECONY Steam Rate Filing Summary Decarbonization Pilot Projects • Includes a new mechanism for decoupling revenues from steam consumption • Continues full reconciliation of costs for pension and OPEBs and environmental remediation • Requests full reconciliation of property taxes, municipal support c
Slide 13: CECONY Steam Illustrative Timeline
CECONY Steam Illustrative Timeline (a) Nov Feb 10, Mar Apr May June July Aug Sept Oct Nov 22, 2023 24, 21, 2, 2023 2023 2023 2023 2023 2023 2022 2023 2023 2023 New Rates in Effect Company Update Rebuttal Testimony Evidentiary Initial Reply ALJ Briefs on Hearings Briefs Briefs Recommended Exception F
Slide 14: Other NYS Regulatory Proceedings
Other NYS Regulatory Proceedings 14
Slide 15: NYS Public Service Commission Regulatory Proceedings
NYS Public Service Commission Regulatory Proceedings Accelerated Renewable • Authorize local transmission projects to achieve renewable power goals Energy Growth Act • PSC approved CECONY's Reliable Clean City projects totaling $780 million in cost • Develop "Phase 2" filing for projects that increa
Slide 16: Strong Economic Performance
Strong Economic Performance 16
Slide 17: Refocusing Our Business: Clean Energy Businesses Sale
Refocusing Our Business: Clean Energy Businesses Sale We closed the sale of substantially all of the assets of the Clean Energy Businesses to a subsidiary of RWE AG • Con Edison can maintain focus on delivering highest value for customers throughout our region • Con Edison plans the following use of
Slide 18: Maintaining Safety & Reliability Focus Through the Clean Energy Transition
Maintaining Safety & Reliability Focus Through the Clean Energy Transition 2023 - 2025 Forecasted Capital Investment: $14.6 billion 18
Slide 19: Key Takeaways: Achieving Clean Energy Goals
Key Takeaways: Achieving Clean Energy Goals New York's aggressive clean energy goals require significant new investment in the state's energy infrastructure, creating strong growth potential for the company Capital investment projects in current forecasts not included in CECONY Joint Proposal for el
Slide 20: Utilities' Capital Investments ($ in millions)
Utilities' Capital Investments ($ in millions) Steam Gas Electric (a) (a) (a) (b) Actual Forecast Annual CECONY Capital Investments Annual O&R Capital Investments Electric Gas Steam Depreciation Electric Gas Depreciation 2018 1,861 1,050 94 1,276 138 67 77 2019 1,851 1,078 91 1,373 142 61 84 2020 2,
Slide 21: Long-range Plans for a Safe, Reliable and Sustainable Future
Long-range Plans for a Safe, Reliable and Sustainable Future These plans guide our programs and investments through 2050. We envision $72 billion in investments for CECONY and O&R over the next 10 years. • Clean Energy: Economy-wide net-zero GHG emissions in our service area by 2050 • Climate Resili
Slide 22: We provide the most reliable electric service in the U.S.
We provide the most reliable electric service in the U.S. Our system reliability exceeds national and New York averages Customer Interruption Rate 2021 Customers Interrupted per 1,000 Customers Served 1200 1080 1000 961 800 600 488 400 200 139 17 0 National New York Con Edison Con Edison Con Edison
Slide 23: Dividend Aristocrat
Dividend Aristocrat 49 consecutive years of dividend increases with a CAGR of 5.72% and a target payout of 60% to 70% of adjusted earnings 23
Slide 24: 2022 vs. 2021 EPS Reconciliation by Company
2022 vs. 2021 EPS Reconciliation by Company Year Ended December 31, 2022 CECONY O&R CEBs CET Other(e) Total Reported EPS – GAAP basis $3.92 $0.25 $1.08 $— $(0.57) $4.68 Transaction costs related to the anticipated sale of the Clean Energy — — — — 0.14 0.14 Businesses (pre-tax) Income taxes (a) — — —
Slide 25: Environmental, Social & Governance Resources
Environmental, Social & Governance Resources 25
Slide 26: Recognition and Accolades
Recognition and Accolades Operating Awards • Service Reliability: PA Consulting ReliabilityOne – CECONY for Outstanding Reliability Performance in the Northeast Metropolitan Service Area and the Outstanding Technology & Innovation Award – O&R for Outstanding Reliability Performance in the Northeast
Slide 27: Con Edison Environmental, Social & Governance Resources
Con Edison Environmental, Social & Governance Resources • Climate Change Resilience and Adaptation Plan – January 2021 • Climate Change Vulnerability Study – December 2019 • Diversity and Inclusion Report examines Con Edison's diverse and inclusive culture • 2022 Proxy Statement • Highlighting how t
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