Consolidated Edison, Inc. · NYSE:ED
Consolidated Edison — American Gas Association Financial Forum 2005
35 slides from Consolidated Edison's conference presentation, May 2, 2005
Slide 1: Con Edison, Inc.: Stable, Disciplined, Reliable
Con Edison, Inc. Stable, Disciplined, Reliable American Gas Association Financial Forum – New Orleans, LA May 1 - 3,
Slide 2: Stable, Disciplined, Reliable
Stable, Disciplined, Reliable American Gas Association Financial Forum – New Orleans, LA May 1 – 3, 2005 Joan S. Freilich Executive Vice President & Chief Financial Officer Robert Hoglund Senior Vice President, Finance Jan C. Childress Director, Investor Relations; Tel: 212-460-6611
Slide 3: This presentation
This presentation contains certain forward-looking statements of future expectations and financial measures not determined in accordance with Generally Accepted Accounting Principles (non-GAAP) financial measures. Actual results might differ materially from those projected in the forward looking sta
Slide 4: Investment Highlights
Investment Highlights Focused Strategy Maintain leadership in service reliability Continue to focus on energy infrastructure investment Maintain constructive regulatory relationships Financial Performance and Strength Dependable and predictable earnings stream Strong balance sheet, solid credit rati
Slide 5: We Never Left The Basics
We Never Left The Basics 2004 Net Income*: $629 million – 100% Con Edison, Inc. Parent Net Loss: $14 million – (2)% CECONY Net Income: $598 million – 95% O&R Net Income: $46 million – 7% Unregulated Energy Subsidiaries Con Edison Solutions Net Income: $3 million – 1% Con Edison Energy Net Income: $0
Slide 6: Business Profile
Business Profile Serves world’s foremost financial, cultural and communication centers Economy appears to be recovering Achieved favorable restructuring outcome Stranded cost recovery Continued recovery of energy costs Generation divestiture Strong cost controls Nation’s highest electric reliability
Slide 7: Consolidated Edison, Inc. Serving The World's Most Demanding Marketplace
Consolidated Edison, Inc. Serving The World’s Most Demanding Marketplace
Slide 8: Reliable Energy Supply is Crucial to Economic Growth
Reliable Energy Supply is Crucial to Economic Growth
Slide 9: Million tourists visited New York City in 2004
40 million tourists visited New York City in 2004 – a new record
Slide 10: Hutchinson Metro Center and other new developments
Hutchinson Metro Center Bronx Bank of America Tower Manhattan Avalon Chrystie Place Manhattan Atlantic Terminal Brooklyn
Slide 11: Memorial Sloan-Kettering Cancer Center's Research Building
Memorial Sloan-Kettering Cancer Center’s Research Building This new 1.2 million square foot facility is a steam customer
Slide 12: New York City Housing Permits
New York City Housing Permits Number of New Dwelling Units Represents New 30-Year Record 25,208 30,000 25,000 20,000 15,000 10,000 5,135 5,000
Slide 13: Electric Peak Load Forecast
Electric Peak Load Forecast Megawatts 1,560 1,530 13,425 1,500 1,465 13,250 Orange & Rockland 1,435 13,025 1,410 12,775 12,600 12,400 Con Edison of New York Figures for 2002–2004 are actual weather adjusted peak loads.
Slide 14: East River Repowering
East River Repowering Placed in service in April 2005 Estimated rate base addition of $685 million
Slide 15: Dunwoodie Station Transmission Upgrade
Dunwoodie Station Transmission Upgrade
Slide 16: Building Substations to Meet Growing Demand
Building Substations to Meet Growing Demand 7 World Trade Center – Manhattan 30th Street – Manhattan Grasslands – Westchester
Slide 17: Supplying New York City's Electric Needs
Supplying New York City’s Electric Needs Major new substations required to support increased economic growth (2002 - 2010) Replacement
Slide 18: Con Edison of New York Infrastructure Investment
Con Edison of New York Infrastructure Investment ($ in Millions) Lower Manhattan Rebuild East River Repowering Common Plant Steam Gas Electric 1,700 1,600 1,500 1,400 1,300 1,200 1,100 1,000 Actual $1,167 Actual $1,235 Budget $1,492 Forecast $1,541 Forecast $1,580 Actual $1,098
Slide 19: Capital Expenditures
Capital Expenditures ($ in Millions) $1,541 $1,580 $1,492 $1,235 $1,167 Con Edison of New York O&R Unregulated Subsidiaries $105 $84 $82 $79 $86 $71 $38 $8 $6 $8 2006* Total $1,635 2005* Total $1,580 Total $1,352 Total $1,343 2007* Total $1,672 * Estimated
Slide 20: Growing Earnings Through Infrastructure Investment
Growing Earnings Through Infrastructure Investment — An Illustration Let’s say we spend $1 billion+ each year in cap ex One-half, or $500 million, is funded through depreciation The balance of $500 million is funded 50/50 with debt/equity Earnings on the equity investment at 11% would be approximate
Slide 21: Regulatory Update, Financial Strength
Consolidated Edison, Inc. Regulatory Update Financial Strength
Slide 22: Rate Agreements Provide Regulatory Stability with Incentives
Rate Agreements Provide Regulatory Stability with Incentives Long history of constructive rate agreements Current recovery of energy costs Financial incentives for improved performance Average earned ROE from ongoing operations for past 10 years is approximately 11.8% Rate agreements ending: Con Ed
Slide 23: Con Edison of New York Summary of Electric Rate Plan
Con Edison of New York Summary of Electric Rate Plan Three-year rate plan: April 1, 2005 – March 31, 2008 Rate increases First year increase - $104.6 million (1.3%) Second year rate freeze Third year increase - $220.4 million (2.3%) Accounting credits totaling $550 million over three years Retain fi
Slide 24: Con Edison of New York Summary of Electric Rate Plan
Con Edison of New York Summary of Electric Rate Plan Rate Base $9.3 billion in rate year 1 $9.6 billion in rate year 2 $10.3 billion in rate year 3 Reconciliations Full reconciliation of T&D rate base Pension and retiree health expenses, and environmental remediation costs Property taxes and interfe
Slide 25: Summary of Gas and Steam Rate Plans
Con Edison of New York Summary of Gas and Steam Rate Plans Rate Periods Gas – 3 years: October 2004 through September 2007 Steam – 2 years: October 2004 through September 2006 Rate Increases (effective October 1st of each year) Gas 2004 - $46.8 million In addition, first $35 million of non-firm reve
Slide 26: Summary of Gas and Steam Rate Plans
Con Edison of New York Summary of Gas and Steam Rate Plans Increases reflect a one-time pretax charge of $17.5 million for gas and $6.2 million for steam, to resolve certain issues Steam carrying costs for East River Repowering Project to be recovered through fuel rider Reconciliations Pension and O
Slide 27: Orange and Rockland Summary of Rate Plans
Orange and Rockland Summary of Rate Plans Rate Periods Electric – July 2003 through October 2006 Gas – November 2003 through October 2006 Rate Increases Gas Effective November 2003 - $9.3 million Effective November 2004 - $9.3 million Effective November 2005 - $5.0 million Earnings Sharing Levels El
Slide 28: Rate Base (as of December 31, 2004)
Rate Base (as of December 31, 2004) ($ millions) Con Edison of New York Electric $ 9,225 Gas $ 1,935 Steam $ 575 Orange and Rockland Utilities Pike Gas $ 1 Pike Electric $ 8 Rockland Electric $ 136 O&R Gas $ 180 O&R Electric $ 360 Total Rate Base $ 12,420 * * Does not include the East River Repoweri
Slide 29: 2005 First Quarter Earnings Per Share of $0.75
2005 First Quarter Earnings Per Share of $0.75 Major Factors Affecting Earnings Per Share 2005 Compared with 2004 EPS Variation ($) Con Edison of New York: Sales growth (estimated) $0.04 Impact of weather in 2005 vs. 2004 (est.) (0.01) Gas rate changes (estimated) 0.04 Retention of non-firm gas reve
Slide 30: Balance Sheet Strength and Flexibility
Balance Sheet Strength and Flexibility (as of March 31, 2005) 1.5% Long-Term Debt Preferred Stock 49.9% 48.6% Common Equity Issued $245.5 million in Con Edison of NY tax-exempt bonds in January 2004 Issued $400 million in Con Edison of NY debentures in February 2004 Issued $512 million in common sto
Slide 31: Superior Credit Quality
Superior Credit Quality Standard and Poor’s Business Position “2” for holding company and both regulated utilities A2 / A- / A- Senior unsecured ratings – holding company A1 / A / A+ Senior unsecured ratings – regulated businesses P-1 / A-1 / F1 Commercial paper ratings No ratings triggers Transpare
Slide 32: A Compelling Dividend Record
A Compelling Dividend Record: 31 Consecutive Years of Dividend Increases Annualized Dividend 1975 - 2005 Only utility in S&P 500 with 25 or more consecutive years of dividend increases $2.50 $2.28 $2.00 $1.50 $1.00 $0.50 $0.30
Slide 33: Total Average Annual Return to Shareholders
Total Average Annual Return to Shareholders Period Ending March 31, 2005 (%) 24.1 Con Edison 12.9 13.9 10.8 10.6 S&P Electrics 10.8 6.7 S&P 500 Index 0.9 -3.2 5 Year 1 Year 10 Year Source: Standard and Poor’s, Bloomberg
Slide 34: Investment Highlights
Investment Highlights Maintain leadership in service reliability Continue to focus on energy infrastructure investment Maintain constructive regulatory relationships Focused Strategy Financial Performance and Strength Dependable and predictable earnings stream Strong balance sheet, solid credit rati
Slide 35: conEdison, inc.
— conEdison, inc. GconEdison, inc.
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