Consolidated Edison, Inc. · NYSE:ED
Consolidated Edison — Edison Electric Institute Finance Conference 2016
25 slides from Consolidated Edison's conference presentation, Nov 6, 2016
Slide 1: Edison Electric Institute Finance Conference
CON EDISON, INC. Edison Electric Institute Finance Conference November 6-8, 2016
Slide 2: Forward-Looking Statements; Non-GAAP Financial Measure
Forward-Looking Statements This presentation contains forward-looking statements that are intended to qualify for the safe-harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are st
Slide 3: Consolidated Edison Investment Thesis
Consolidated Edison Investment Thesis • Core regulated energy delivery business with growing energy infrastructure platform − Limited commodity exposure − Reduced regulatory lag through forward-looking test years, revenue decoupling and adjustment mechanisms • Investing in core regulated franchise f
Slide 4: Industry trends: Technological impacts and opportunities
Long-Range Plan: Industry trends and implications Technological impacts and opportunities Technologies with significant potential impact and investment opportunities for Con Edison. Near term Mid term Long term Technologies (0-5 years) (5-10 years) (10-20 years) Renewable energy • Solar and wind • S
Slide 5: Industry trends: Customer interests in energy services
Long-Range Plan: Industry trends and implications Customer interests in energy services In conversation with our customers, we observe interest in additional control and conservation of energy. And, they regard their utility as a trusted advisor. Customers Observations • Sustainability is increasing
Slide 6: Industry trends: Policy and regulation
Long-Range Plan: Industry trends and implications Policy and regulation Consistent regulatory themes include safety, reliability, and improving the environment. Electric Federal • Federal policy supports renewables and carbon reduction – e.g., renewable energy tax credits, Clean Power Plan, improved
Slide 7: Electric forecast: peak usage
Long-Range Plan: Industry trends and implications Electric forecast: peak usage Electric peak usage is projected to grow modestly. CECONY O&R Actual Actual Forecast Forecast 20 2.0 Demand CAGR 0.4% Demand CAGR 0.3% 15 1.5 Peak Demand (GW) Peak Demand (GW) 10 1.0 5 0.5 0 0.0 2011 2016 2021 2026 2031
Slide 8: Gas forecast: peak usage
Long-Range Plan: Industry trends and implications Gas forecast: peak usage Gas peak usage is projected to grow. CECONY O&R Actual Forecast Actual Forecast 2,000 300 Peak Demand (MDt/day) Demand CAGR 1.4% Demand CAGR 0.3% Peak Demand (MDt/day) 1,500 225 1,000 150 500 75 0 0 2011 2016 2021 2026 2031 2
Slide 9: Con Ed strategy
Long-Range Plan Con Ed strategy Customer Focused Strategic Value Oriented Ensure safety and Strengthen core Provide steady, reliability utility delivery predictable business earnings Enhance the Pursue additional Maintain customer regulated growth balance sheet experience opportunities to add stabil
Slide 10: Organizational Structure
Organizational Structure Market Cap(1): $23.1 billion Issuer Ratings: A3 / A- / BBB+ Outlook: Stable / Negative / Stable Regulated Utilities Regulated Transmission Competitive Energy Businesses Consolidated Orange and Con Edison Consolidated Con Con Con Edison Rockland Gas Pipeline Edison Edison Edi
Slide 11: Strengthen the core utility business
Strengthen the core utility business 11
Slide 12: Improve public safety: gas distribution
Strengthen the core utility businesses Improve public safety: gas distribution Our plan targets $8.3 billion in main replacement expenditures over the next 20 years. Main replacement Actual Forecast 3,000 $600 • CECONY’s joint proposal includes three- year plan consistent with a 20-year Annual Capit
Slide 13: Enhance our customers' experience
Strengthen the core utility businesses Enhance our customers’ experience We have begun on a comprehensive effort to improve customer satisfaction. CECONY customer satisfaction 750 • We measure customer satisfaction using: – J.D. Power satisfaction studies 700 – Customer satisfaction surveys – PSC co
Slide 14: Pursue non-traditional utility growth
Pursue non-traditional utility growth 14
Slide 15: Advanced metering infrastructure (AMI)
Pursue non-traditional utility growth Advanced metering infrastructure (AMI) The AMI project is on schedule with deployment from mid-2017 through 2022. Approved capital investment • PSC authorized AMI deployment for $1.3B at CECONY $10 • Functional and technical designs are $29 Capital Expenditures
Slide 16: Develop distributed resources: energy efficiency
Pursue non-traditional utility growth Develop distributed resources: energy efficiency The rate case joint proposal expands utility investment and earnings opportunities for energy efficiency and reductions in peak usage. Proposed electric efficiency program • There is strategic value to retaining t
Slide 17: Battery storage opportunities
Pursue non-traditional utility growth Battery storage opportunities Over 1GW of energy storage could be installed in our service territories in the next 20 years. Battery storage forecast (CECONY and O&R) 1,200 • Batteries can be used to control and stabilize power distribution networks IHS forecast
Slide 18: Electric-vehicle infrastructure opportunities
Pursue non-traditional utility growth Electric-vehicle (EV) infrastructure opportunities If NYS achieves its EV goal, ~800K electric vehicles may emerge in our service territories. Electric vehicle forecast (CECONY and O&R) Observations 1,000 • NYS will require 15% of new vehicles sold to be ~65,000
Slide 19: Incremental utility growth
Pursue non-traditional utility growth Incremental utility growth Investment and earnings opportunities may emerge to meet state energy policy goals. Category Initiatives • Major initiatives to enable REV, improve operating efficiency, customer Information Technology experience, and risk management •
Slide 20: Pursue non-utility growth
Pursue non-utility growth 20
Slide 21: Con Edison Development: 5th largest owner of solar in US
Pursue non-utility growth Con Edison Development: 5th largest owner of solar in US Conservative, measured approach aimed at contracted infrastructure development and focused on investment-grade off-takers 2016 Operating Capacity 380 Wind 153 MW 17% 130 105 Solar 883 730 MW 748 83% 446 292 28 127 Ove
Slide 22: Con Edison Transmission: natural gas transmission investments
Pursue non-utility growth Con Edison Transmission: natural gas transmission investments The strategic position of Stagecoach and Mountain Valley Pipeline (MVP) presents growth opportunities in areas where Con Edison has a long-term operating history Rationale and Benefits Gas Demand Flows • Assets a
Slide 23: Con Edison Transmission: electric transmission investments
Pursue non-utility growth Con Edison Transmission: electric transmission investments Electric transmission growth is impacted by generator retirements and connecting large scale renewables to load. • Growing renewables development in NYS & Northeast implies increasing opportunity for CET to develop
Slide 24: Additional growth opportunities
Pursue non-utility growth Additional growth opportunities Competitive energy businesses continue to evaluate additional earnings growth opportunities. Category Description • Enhance sales and marketing • Implement design/build capabilities for renewable opportunities Pursue energy services growth •
Slide 25: Long-Range Plan Financial Outlook
Long-Range Plan Financial Outlook Core utilities continue to be core of business mix • Historical earnings-per-share CAGR of 3.1% (5-year) from business mix of ~95% utilities • Core utility business will continue to dominate the business mix over long term • Contracted renewables and new, contracted
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