Consolidated Edison, Inc. · NYSE:ED
Consolidated Edison — Edison Electric Institute Finance Conference 2013
25 slides from Consolidated Edison's conference presentation, Nov 12, 2013
Slide 1: Con Edison, Inc. Edison Electric Institute Finance Conference
Con Edison, Inc. November 12, 2013 Edison Electric Institute Finance Conference 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation includes certain forward-looking statements intended to qualify for safe-harbor provisions of the Federal securities laws. Forward-looking statements are statements of future expectation and not facts. Words such as "expects," "estimates," "anticipates,"
Slide 3: Regulated Transmission and Distribution Focused
Regulated Transmission and Distribution Focused Con Edison, Inc. (ED) 2012 EPS $3.88* Rate Base: $22.1 billion Market Cap: $18.6 billion Regulated Utilities Orange and Rockland 2012 EPS $0.22 Con Edison of New York 2012 EPS $3.46 Competitive Energy Businesses Con Edison Con Edison Con Edison Solutio
Slide 4: Regulated Utilities are the Core of Con Edison, Inc.
Regulated Utilities are the Core of Con Edison, Inc. Con Edison of New York (CECONY) • 3.3 million electric customers • 1.1 million gas customers • 1,717 steam customers • 702 MW of regulated generation CECONY and O&R • Delivered 40% of NYS 2013 delivered 43% of electric peak consumption NYS 2013 el
Slide 5: Composition of Rate Base
Composition of Rate Base (as of September 30, 2013) Rate Base* ($ millions) Con Edison of New York Electric (NY) $ 16,433 Gas (NY) $ 3,380 Steam (NY) $ 1,501 Total CECONY $ 21,314 Orange and Rockland Pike Gas (PA) $ 2 Pike Electric (PA) $ 13 Rockland Electric (NJ) (distribution) $ 171 (transmission)
Slide 6: Key Provisions of 2013 Electric, Steam and Gas Rate Filing
Con Edison of New York Key Provisions of 2013 Electric, Steam and Gas Rate Filing • Proposing programs intended to reduce service outages from major storms, as well as improve the storm recovery process – plans for $1 billion of storm hardening capital expenditures through 2016 (electric: $800 milli
Slide 7: 2013 Electric, Gas and Steam Rate Filings
Con Edison of New York 2013 Electric, Gas and Steam Rate Filings (13-E-0030, 13-G-0031, 13-S-0032) • Historic test year: Twelve months ended June 30, 2012 • Forward test year: January 1, 2014 – December 31, 2014 • New rates in effect January 1, 2014 • In October, the PSC extended rate setting proces
Slide 8: Comparison of Company and PSC Staff Positions ($ millions)
Con Edison of New York Comparison of Company and PSC Staff Positions ($ millions) % of Electric Gas Steam Total Difference Company's Proposal (September Briefs) 418 27 8 453 Staff Proposal Differs as Follows: ROE/Capital Structure (248) (50) (21) (319) 46% O&M (121) (25) (7) (153) 22% Depreciation (
Slide 9: 5-Year Annualized Growth Rates in Peak Usage
5-Year Annualized Growth Rates in Peak Usage 5-Year Historical Current 5-Year 2002-2007 Forecast (Pre-Recession) (2013-2018) CECONY Electric 1.8% 1.4% Gas 1.0% 3.8% Steam (0.8)% (0.6)% O&R Electric 2.6% 0.9% Gas (0.8)% 0.7% 9
Slide 10: Historical Electricity Peak Demand
Con Edison of New York Historical Electricity Peak Demand* 14,000 13,000 9/11 The Great (2001) Recession 12,000 Electric Peak (MW) Enlightened 11,000 Energy Program Stock Market Crash 10,000 (1987) Oil Embargo (1973) Oil Shock Iranian Revolution 9,000 Iran/Iraq War (1979) 8,000 NYC Fiscal Crisis (19
Slide 11: Electric Consumption by Customer Class – CECONY vs. U.S.
Electric Consumption by Customer Class – CECONY vs. U.S. U.S. CECONY 38% 35% 28% 70% 2% 27% Commercial Industrial Residential Commercial Industrial Residential Source: Bernstein Research, Consolidated Edison Company of New York 11
Slide 12: Peak Forecasting Process
Peak Forecasting Process Actual Peak Weather Adjustment Top-Down Bottom-Up Demand Growth/Decline -Demand Management + Other Adjustments = Final Peak Demand Forecast 12
Slide 13: New York City Economy Continues to Show Resilience
New York City Economy Continues to Show Resilience • 60,700 jobs added in NYC during first six months of 2013 – highest rate of growth for any six- month period since 2000 • NYC is becoming a high-tech hub with job growth and two science campuses under development • Tourism is NYC’s fifth largest in
Slide 14: Number of Permits Issued
Con Edison of New York CECONY Residential Building Permits 40,000 36-year high occurred due to extension 35,000 and then expiration of NYC tax abatement program 30,000 Number of Permits Issued 25,000 30-Yr Average 20,000 15,000 10,000 5,000 0 1995 1996 1999 2002 2003 2006 2009 2010 2013 1994 1997 19
Slide 15: Growth Forecasts for Peak Demand for Electric Networks
Con Edison of New York Growth Forecasts for Peak Demand for 82 Electric Networks Bottom-up Forecast Five Year Compounded Growth Rate > 1.5% > 0.7% & < 1.5% < 0.7% New York City Westchester 15
Slide 16: CECONY Peak Demand Illustration with Components
CECONY Peak Demand Illustration with Components Energy Efficiency measures contribute significantly to slower future growth 14,800 5-Yr Peak Reductions: Energy Efficiency Demand Response 14,600 1.04% 0.14% 14,400 14,200 Megawatts 14,000 13,800 13,600 13,400 13,200 2014 2015 2016 2017 2018 System Gro
Slide 17: 2012 Annual Hourly Electric Demand Curve
Con Edison of New York 2012 Annual Hourly Electric Demand Curve 13,600 13,000 12,400 Demand For Electric Delivery Service in MWs Hourly Demand (MW) Number of Hours 11,800 3,111 4,000 25 11,200 4,001 5,000 817 5,001 6,000 1,704 10,600 6,001 7,000 2,094 10,000 7,001 8,000 2,482 8,001 9,000 707 9,400 9
Slide 18: Demand Side Management Programs
Con Edison of New York Demand Side Management Programs • 10 Energy Efficiency Electric and Gas Programs – Funded through system benefit charge on customer electric and gas bills – Achievements result in ongoing annual savings of: – 200,000 tons of carbon – Over 500,000 MWh of electricity – 630,000 D
Slide 19: Energy Efficiency and Demand Response Programs by Customer Segment (2009 – 2013)
Con Edison of New York Energy Efficiency and Demand Response Programs by Customer Segment (2009 – 2013) Annual Savings Achieved to Date (MWh) Cumulative Number of Customers Participating 6% 6% 33,000 2% 28,000 MWh 4,200 MWh 21% 51,000 41% 210,000 MWh 3% 74% 6,200 47% 176,000 242,000 MWh Commercial a
Slide 20: Photovoltaic (PV) and Combined Heat and Power (CHP) Technology Historical Growth
Con Edison of New York Photovoltaic (PV) and Combined Heat and Power (CHP) Technology Historical Growth (as of October 2013) Total Customers by Technology Total Installed Capacity 1,600 160 MW PV 140 MW 1,400 1,200 120 MW CHP 100 MW 1,000 80 MW 800 60 MW 600 400 40 MW PV CHP 20 MW 200 0 MW 0 20
Slide 21: Legislation Sets Net Metering Requirements
Legislation Sets Net Metering Requirements New York State Legislation • Solar • Wind • Fuel cells • Micro-hydro Eligible Technologies • Residential Micro-CHP • Farm waste Residential ≤ 25 kW Maximum Size Non-residential ≤ 2 MW Cap (based on 3% of utility’s peak load in Con Edison at 332 MW; O&R at 3
Slide 22: CECONY Distributed Generation (DG) Customer Overview by Service Territory
Con Edison of New York CECONY Distributed Generation (DG) Customer Overview by Service Territory Total CHP Installations (by Total PV Installations (by MWs/Service Territory) MWs/Service Territory) Staten Island Manhattan 4% 7% Staten Island Bronx 7% 10% Brooklyn Manhattan 19% 41% Bronx Westcheste 4
Slide 23: CECONY DG Overview by Customer Class
Con Edison of New York CECONY DG Overview by Customer Class Large Installations by Segment* Reasons for adoption include: Retail Other 1% 4% Energy cost reduction Reliability/back up solution Education 15% Multi Family Environmental benefit 38% Hospital 21% Office 21% *Represents systems size
Slide 24: Infrastructure Investment
Con Edison of New York Electric Gas Steam Depreciation Infrastructure Investment Actual 2008 1,743 338 121 672 ($ millions) 2009 1,596 339 122 744 2010 1,421 334 111 787 2011 1,354 335 89 829 2012 1,375 426 108 894 $2,500 Forecast 2013 1,447 473 110 949 2014 1,496 497 84 1,007 2015 1,650 545 96 1,06
Slide 25: Consolidated Edison, Inc. Investment Thesis
Consolidated Edison, Inc. Investment Thesis • The largest of the few publicly-traded, T&D-focused utility companies – Limited commodity exposure • Reduced regulatory lag – Forward-looking test years – Timely recovery of most fuel and commodity costs – Revenue decoupling mechanism in NY (electric and
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