Consolidated Edison, Inc. · NYSE:ED
Consolidated Edison — Investor Presentation (June 2020)
46 slides from Consolidated Edison's investor presentation, June 2020
Slide 1: June 2020 Investor Meetings
June 2020 Investor Meetings GconEdison
Slide 2: Available Information; Forward-Looking Statements; Non-GAAP Financial Measures
Available Information On May 7, 2020, Consolidated Edison, Inc. issued a press release reporting its first quarter 2020 earnings and filed with the Securities and Exchange Commission the company’s first quarter 2020 Form 10-Q. This presentation should be read together with, and is qualified in its e
Slide 3: Organizational Structure
Organizational Structure Market Cap(a): $26.1 billion Utilities Transmission Clean Energy Con Edison Con Edison Consolidated Clean Energy Orange and Transmission, Edison Businesses, Rockland Inc. Company of Inc. New York, Inc. Utilities, Inc. (Con Edison (Clean Energy (O&R) Transmission or (CECONY)
Slide 4: Who is Con Edison?
Who is Con Edison? 4
Slide 5: Who is Con Edison?
Who is Con Edison? STONEWALL WORLDPRIDE
Slide 6: Who is Con Edison?
Who is Con Edison? We are a clean energy company with strong financials and committed to a sustainable future Our Primary Service Area • Founded in 1823 as the New York Gas Light Company and began trading on the NYSE • 46 consecutive years of increasing dividends • Electric, gas, and steam services
Slide 7: The Con Edison Plan: Customer Centric and Value-Creation Oriented
The Con Edison Plan: Customer Centric and Value-Creation Oriented Customer-focused strategy delivers triple-bottom-line results: People, Planet, Profits Customer Focused Value Oriented Strategic • Provide safe and reliable • Provide steady, predictable • Strengthen core utility service earnings deli
Slide 8: Maintaining Focus on Our Core Principles During the Pandemic
Maintaining Focus on Our Core Principles During the Pandemic • Safety and reliable service remain top priorities for Con Edison – Mobilized a pandemic planning team in January and an incident command system structure on March 16th – Approximately 8,000 out of 14,000 employees are working from home o
Slide 9: Supporting the Community During the Pandemic
Supporting the Community During the Pandemic • Deployed 1 MW generator to support the field hospital setup located at the Brooklyn Cruise Terminal in Red Hook • Expanded grid service or provided engineering services for emergency field hospitals: – At Westchester County Center to support a 100-bed f
Slide 10: Customer Breakdown of Electric Deliveries and Revenues
Customer Breakdown of Electric Deliveries and Revenues 10
Slide 11: Estimated Non-Weather Impact on Electric Delivery Volume and Revenues
Estimated Non-Weather Impact on Electric Delivery Volume and Revenues for March 16 to April 30, 2020 Impact on Electric Delivery Volume(a) Impact on Electric Delivery Revenues(b) Millions of kWh delivered $ in thousands CECONY CECONY 11% 7% (17)% (16)% (19)% (16)% O&R O&R 5% 9% (9)% (15)% a. Impact
Slide 12: Liquidity Update
Liquidity Update • Con Edison’s credit facility of $2,250 million supports commercial paper with $1,042 million of borrowing capacity available under the facility as of March 31, 2020, and additionally Con Edison had $1,395 million of cash and temporary cash investments as of March 31, 2020. • Finan
Slide 13: Transparent Rate-Making Process
Transparent Rate-Making Process • About 87% of CEI revenues are subject to a regulatory recovery mechanism, e.g. revenue decoupling mechanisms • Rate plans provide for a total of $54 million for bad debt expense at CECONY and O&R for 2020 • Currently we have no open rate case filings with the NYSPSC
Slide 14: No Near-Term Cash Impact to Pension Plan
No Near-Term Cash Impact to Pension Plan 14
Slide 15: Safety is our Highest Priority
Safety is our Highest Priority We are committed to a zero-harm culture aimed at protecting our employees and the public • Our electric and gas delivery systems are surveyed 12 times a year, exceeding industry standards • In 2018, Orange and Rockland Utilities eliminated the last of our cast-iron pip
Slide 16: Focusing on System Reliability
Focusing on System Reliability CECONY’s system reliability exceeds national and New York standards Customer Interruption Rate 2019 Customer Interrupted per 1,000 Customer Served 1200 1,030 1,000 1000 800 600 526 400 200 152 22 0 National* New York* Con Edison Con Edison Con Edison (w/o Con Edison) (
Slide 17: A Long History of GHG Emissions Reductions
A Long History of GHG Emissions Reductions Clean energy company with 51% reduction in direct GHG emissions since 2005 • Con Edison has been a leader in emissions reduction for over a generation; we converted all of our plants from coal to cleaner fuels in 1972 • Essentially all of CECONY’s heavy-dut
Slide 18: Steam as an Environmentally-Sound Power Source
Steam as an Environmentally-Sound Power Source Largest steam system in U.S. eliminating about 1 million tons of CO2 annually • Con Edison operates the largest steam system in the United States, serving more than 3 million New Yorkers • System has a capacity of about 11.4 million pounds per hour • Th
Slide 19: Clean Energy Business as a Source of Sustainable Growth
Clean Energy Business as a Source of Sustainable Growth 7th largest solar power producer in the world with assets across the U.S. 2nd largest solar power producer in North America 3.2 gigawatts (AC) of renewable energy production capacity • Located in 19 states • 85% solar, 15% wind Copper Mountain
Slide 20: Committed to the Environment Through Clean Energy Production
Committed to the Environment Through Clean Energy Production Company-owned electric generation includes 56% renewable energy and zero coal Con Edison Owned Generating Capacity Total 6.7 Million MWh* 43.7% 39.9% 16.0% 0.4% Solar Wind Natural Gas Petroleum CECONY Fuel Mix Allocated by NYISO** 51.1% 37
Slide 21: Furthering Ambitious New York State Environmental Goals
Furthering Ambitious New York State Environmental Goals We support the New York State Green New Deal adopted June 2019, which is focused on a carbon-free, clean energy future New York State Green New Deal Goals • 100% carbon-free power by 2040 • 70% renewable electricity by 2030 • 40% carbon emissio
Slide 22: Our Clean Energy Commitment
Our Clean Energy Commitment Con Edison is committed to leading and delivering the transition to the clean energy future Tripling Energy Efficiency by 2030 • Since 2009, more than 1 million customers have upgraded to more efficient equipment, saving more than 7 million metric tons of carbon emissions
Slide 23: Energy Efficiency and Demand Management Programs
Benefitting Customers and the Environment Through Energy Efficiency and Demand Management Programs Our energy efficiency and demand management programs have saved more than 7 million metric tons of carbon emissions since 2009 • Since 2009, more than 1 million customers have upgraded to more efficien
Slide 24: Enhancing the Customer Experience Through Smart Systems
Enhancing the Customer Experience Through Smart Systems Nearly $2 billion in digital technology investments to improve customer experience and savings • Launched $1.4 billion smart meter initiative targeting 5.3 million installations in New York City, Westchester and New Jersey areas by 2022 • When
Slide 25: Electrifying Our Transportation
Electrifying Our Transportation Electric vehicle infrastructure and customer incentives pave the way for electric vehicle ownership in our service territory • CECONY rate plan includes $52 million in electric vehicle programs ‒ $30 million program to provide interconnection for new public fast charg
Slide 26: CECONY 2020 Green Bonds Fund Clean Energy Programs
CECONY 2020 Green Bonds Fund Clean Energy Programs Green Bond proceeds will be used for CECONY’s investments in improving energy efficiency and supporting changes in customer energy usage • In March, CECONY issued $1.6 billion of debentures in its inaugural Green Bond offering – $600 million of 3.35
Slide 27: Incorporating Operational Improvements
Incorporating Operational Improvements Investments totaling nearly $12 billion over three years focused on infrastructure upgrades, digital technologies to improve customer experience and clean energy technologies • Plan to spend more than $3 billion annually on infrastructure upgrades through 2022
Slide 28: Infrastructure & Climate Resilience Investment
Infrastructure & Climate Resilience Investment Ensuring our core infrastructure is resilient and ready for the future • $3 billion investment planned over the next several years for upgrades to utility infrastructure • $1 billion infrastructure investments following Superstorm Sandy completed in 201
Slide 29: Commitment to Science-Based Climate Resilience Planning
Commitment to Science-Based Climate Resilience Planning Climate Change Vulnerability Study details projected impacts to energy systems through the 21st Century • 36-month study developed in collaboration with global consulting firm ICF and Columbia University’s Lamont-Doherty Earth Observatory • Mov
Slide 30: Commitment to Science-Based Climate Resilience Planning
Commitment to Science-Based Climate Resilience Planning Climate Change Implementation Plan will indicate how the management of climate risk will be integrated into our organizational governance structure • Implementation plan to be developed by December 31, 2020 and will include the following: ‒ upd
Slide 31: Corporate Governance Highlights
Corporate Governance Highlights Our governance model is focused on diversity, shareholder empowerment and a sustainable future • Independent Lead Director Michael W. Ranger Independent Leadership & • 10-member board of directors, 8 of whom are independent under NYSE guidelines Oversight • The averag
Slide 32: Adopting Board Best Practices
Adopting Board Best Practices Board has an appropriate blend of diversity, tenure and skills Board BoardDiversity Diversity Board Skills and Experience Board Skillsofand (Number Experience Directors) Leadership 10 Strategic Planning 9 Diverse Corporate Governance 8 50% Risk Management 7 Executive at
Slide 33: Diversity and Inclusion
Diversity and Inclusion Diversity & Inclusion Vision To be a company whose values and behaviors foster a culture of inclusion and respect for all. Diversity & Inclusion Mission To cultivate a workplace where employees are fully engaged, and able to deliver to their full potential. Value diversity an
Slide 34: Maintaining a Diverse and Engaged Work Force
Maintaining a Diverse and Engaged Work Force Committed to valuing and supporting a wide range of employee needs and interests • Launched Power Your Future, an information session to educate women interested in non-traditional career paths. • Nearly 700,000 hours of training, including instructor-led
Slide 35: Engaging with our Community
Engaging with our Community We believe community organizations enrich the fabric of our neighborhoods • In 2019, we gave $12.6 million in charitable donations to over 650 nonprofit partners across CECONY and O&R service territories • Through the Power of Giving program, 635 employees volunteered 6,3
Slide 36: Engaging with our Community
Engaging with our Community Proudly supporting hundreds of nonprofits, and STEM students at all levels • Con Edison employees volunteer at City of Science, a free family-friendly STEM event produced by the World Science Festival and presented by Con Edison that is filled with interactive demonstrati
Slide 37: Capital Expenditures
Capital Expenditures ($ in millions) (a) (b) (c) (c) (c) (d) Actual Forecast CECONY & O&R - actual Clean Energy Businesses - actual Con Edison Transmission - actual CECONY & O&R - forecast Clean Energy Businesses - forecast Con Edison Transmission - forecast a. 2016 includes Stagecoach JV investment
Slide 38: Utilities' Capital Expenditures
Utilities' Capital Expenditures ($ in millions) Steam Gas Electric (a) (a) (a) Actual Forecast (b) Annual CECONY Capital Expenditures Annual O&R Capital Expenditures Electric Gas Steam Depreciation Electric Gas Depreciation 2015 1,658 671 106 1,040 114 46 68 2016 1,819 811 126 1,106 114 52 67 2017 1
Slide 39: Average Rate Base Balances
Average Rate Base Balances ($ in millions) $35,783 $33,872 $31,930 $30,559 $28,515 $25,014 $26,014 $24,522 O&R CECONY Actual Forecast 2015 2016 2017 2018 2019 2020E(a) 2021E(a) 2022E(a) Electric $ 17,599 $ 17,971 $ 18,513 $ 20,057 $ 21,149 $ 21,660 $ 22,783 $ 23,926 CECONY Gas 4,023 4,267 4,723 5,58
Slide 40: Capital Structure – March 31, 2020
Capital Structure – March 31, 2020 ($ in millions) Consolidated Edison, Inc. Baa2 / BBB+ / BBB+ Debt $ 21,516 54% Equity 18,467 46 Total $ 39,983 100% CECONY O&R Parent and Other Baa1 / A- / A- Baa1 / A- / A- Debt $ 16,544 54% Debt $ 818 51% Debt $ 4,154 55% Equity 14,333 46 Equity 786 49 Equity 3,3
Slide 41: Creating Shareholder Value
Creating Shareholder Value Providing shareholders with steady dividend growth over the long term • Longest continuously listed company on the NYSE • 46 consecutive years of increasing dividends • Longest string of annual dividend increases of any utility in S&P 500 5-year CAGR (2016-2020) 3.3% 5-yea
Slide 42: Con Edison: Poised for a Strong Future
Con Edison: Poised for a Strong Future Providing long-term value through steady, predictable earnings and attractive growth opportunities grounded in a deep commitment to safety, sustainability and service • One of the nation’s largest investor-owned energy-delivery companies – $12 billion in annual
Slide 43: Appendix
Appendix © conEdison, inc.
Slide 44: Sustainability Impact at a Glance
Sustainability Impact at a Glance Safety & Committed to a zero-harm culture and Environment environmental stewardship AWARDS & • Since 2009, Con Edison has reduced injuries by more than 64% while Orange & Rockland RECOGNITION has seen a 69% reduction. • Reduced carbon footprint nearly 51% since 2005
Slide 45: Focusing on System Reliability
Focusing on System Reliability Proven track record and ongoing commitment for outstanding system reliability • Highest reliability in the U.S. based on customer interruption rates* • Tie executive compensation to reliability performance measures • Infrastructure investment supports customer demands
Slide 46: Con Edison Sustainability Rankings and Ratings
Con Edison Sustainability Rankings and Ratings #2 Solar Producer in North America IHS Markit #2 in Business Customer Satisfaction Among Large Utilities in the East J.D. Power #2 among Utilities Diversity Inc. #6 among Utilities JUST Capital Among the 300 Most Responsible Companies Newsweek’s 2020 Am
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