Slide 1: 2nd Quarter 2021 Earnings Release Presentation
2nd Quarter 2021 Earnings Release Presentation August 5, 2021
Slide 2: Available Information; Forward-Looking Statements; Non-GAAP Financial Measures
Available Information On August 5, 2021, Consolidated Edison, Inc. issued a press release reporting its second quarter 2021 earnings and filed with the Securities and Exchange Commission the company’s second quarter 2021 Form 10-Q. This presentation should be read together with, and is qualified in
Slide 3: Table of Contents
Table of Contents Page Organizational Structure 4 The Con Edison Plan and Clean Energy Commitment 5 Dividend and Earnings Announcements 6 2Q 2021 Earnings 7 - 10 2Q 2021 Developments 11 - 13 YTD 2021 Earnings 14- 17 Five-Year Reconciliation of Reported EPS (GAAP) to Adjusted EPS (Non-GAAP) 18 The Co
Slide 4: Organizational Structure
Organizational Structure Market Cap(a): $25.3 billion (b) Ratings : Baa2 / BBB+ / BBB+ Outlook(b): Stable / Negative / Negative Utilities Clean Energy Transmission Con Edison Con Edison Transmission, Consolidated Inc. Orange and Clean Energy Edison (Con Edison Rockland Businesses, Inc. Transmission
Slide 5: The Con Edison Plan and Clean Energy Commitment
The Con Edison Plan and Clean Energy Commitment Customer Focused Strategic Value Oriented Provide safe and reliable Strengthen core utility delivery Provide steady, predictable service business earnings Enhance the customer Pursue additional regulated growth Maintain balance sheet experience opportu
Slide 6: Dividend and Earnings Announcements
Dividend and Earnings Announcements • On July 15, 2021, the company issued a press release reporting that the company had declared a quarterly dividend of 77.5 cents a share on its common stock. • On August 5, 2021, the company issued a press release in which it reaffirmed its previous forecast of a
Slide 7: 2Q 2021 Earnings
2Q 2021 Earnings Net Income for Earnings per Share Common Stock ($ in Millions) 2021 2020 2021 2020 Reported Net Income for Common Stock and EPS – GAAP basis $0.48 $0.57 $165 $190 Loss from sale of a renewable electric production project (pre-tax) 0.01 — 4 — Income taxes (a) — — (1) — Loss from sale
Slide 8: Walk from 2Q 2020 EPS to 2Q 2021 EPS
Walk from 2Q 2020 EPS to 2Q 2021 EPS Variance in Reported EPS (GAAP) Variance in Adjusted EPS (Non-GAAP) $0.60 $0.57 $0.09 $0.03 $0.53 $0.48 $(0.01) $(0.01) $(0.08) $(0.08) $(0.09) $(0.01) $— $— (a) 2Q 2020 CECONY O&R CEBs CET Other(a) 2Q 2021 2Q 2020 CECONY O&R CEBs CET Other 2Q 2021 Reported Repor
Slide 9: 2Q 2021 vs. 2Q 2020 EPS Variances – Three Months Ended Variation
2Q 2021 vs. 2Q 2020 EPS Variances – Three Months Ended Variation CECONY(a) Deferral of increases to reserve for uncollectibles associated with the Coronavirus Disease (COVID-19) pandemic began in the third $0.03 quarter of 2020 Higher electric rate base 0.02 Higher gas rate base 0.01 Higher healthca
Slide 10: 2Q 2021 vs. 2Q 2020 EPS Reconciliation by Company
2Q 2021 vs. 2Q 2020 EPS Reconciliation by Company Three Months Ended June 30, 2021 CECONY O&R CEBs CET Other(e) Total Reported EPS – GAAP basis $0.37 $— $0.19 $(0.05) $(0.03) $0.48 Loss from sale of a renewable electric production project (pre-tax) — — 0.01 — — 0.01 Income taxes (a) — — — — — — Loss
Slide 11: 2Q 2021 Developments
2Q 2021 Developments(a) CECONY & O&R • In July 2021, the NYSPSC approved a settlement agreement among CECONY, O&R and the NYSDPS that fully resolves all issues and allegations that have been raised or could have been raised by the NYSPSC against CECONY and O&R with respect to: (1) the July 2018 rupt
Slide 12: 2Q 2021 Developments (cont'd)
2Q 2021 Developments (cont'd)(a) CECONY & O&R • In May 2021, CECONY decreased its five-year forecast of average annual growth of the firm peak gas demand in its service area at design conditions from approximately 1.4 percent (for 2021 to 2025) to approximately 1.3 percent (for 2022 to 2026). The sl
Slide 13: 2Q 2021 Developments (cont'd)
2Q 2021 Developments (cont'd)(a) Clean Energy Businesses • In June 2021, the Clean Energy Businesses completed the sale of substantially all of its interests in a renewable electric project that it developed and all of its membership interests in a renewable electric production project that it acqui
Slide 14: YTD 2021 Earnings
YTD 2021 Earnings Net Income for Earnings per Share Common Stock ($ in Millions) 2021 2020 2021 2020 Reported Net Income for Common Stock and EPS – GAAP basis $1.70 $1.69 $584 $565 Loss from sale of a renewable electric production project (pre-tax) 0.01 — 4 — Income taxes (a) — — (1) — Loss from sal
Slide 15: Walk from YTD 2020 EPS to YTD 2021 EPS
Walk from YTD 2020 EPS to YTD 2021 EPS Variance in Reported EPS (GAAP) Variance in Adjusted EPS (Non-GAAP) $0.49 $1.95 $0.05 $0.05 $1.95 $(0.01) $(0.05) $(0.04) $1.69 $0.05 $1.70 $(0.01) $(0.49) $(0.03) YTD 2020 CECONY O&R CEBs CET Other (a) YTD 2021 YTD 2020 CECONY O&R CEBs CET Other (a) YTD 2021 R
Slide 16: YTD 2021 vs. YTD 2020 EPS Variances – Six Months Ended Variation
YTD 2021 vs. YTD 2020 EPS Variances – Six Months Ended Variation CECONY(a) Higher gas rate base $0.07 Weather impact on steam revenues 0.05 Higher electric rate base 0.04 Deferral of increases to reserve for uncollectibles associated with the COVID-19 pandemic began in the third quarter of 2020 0.04
Slide 17: YTD 2021 vs. YTD 2020 EPS Reconciliation by Company
YTD 2021 vs. YTD 2020 EPS Reconciliation by Company Six months ended June 30, 2021 CECONY O&R CEBs CET Other(e) Total Reported EPS – GAAP basis $1.72 $0.08 $0.34 $(0.41) $(0.03) $1.70 Loss from sale of a renewable electric production project (pre-tax) — — 0.01 — — 0.01 Income taxes (a) — — — — — — L
Slide 18: Five-Year Reconciliation of Reported EPS (GAAP) to Adjusted EPS (Non-GAAP)
Five-Year Reconciliation of Reported EPS (GAAP) to Adjusted EPS (Non-GAAP) 12 Months Ending December 31, 2017 2018(a) 2019(a) 2020(a) 2021(a)(b) Reported EPS – GAAP basis $4.97 $4.43 $4.09 $3.29 $3.29 Income tax effect of the TCJA (0.85) 0.14 — — — Loss from sale of a renewable electric production p
Slide 19: Maintaining Focus on Our Core Principles During the Pandemic
Maintaining Focus on Our Core Principles During the Pandemic • Safety and reliable service remain top priorities for Con Edison – Mobilized a pandemic planning team in January 2020 and an incident command system structure on March 16, 2020 – More than 8,000 of our employees are working from home or
Slide 20: Financial Impacts of COVID-19
Financial Impacts of COVID-19 Impact on Income before income tax expense(a) Balance Sheet Impact ($ in millions) ($ in millions) Employee retention tax credit under CECONY $7.3 the CARES Act Unbilled amounts for late (89.3) payment and other charges $709.7 Lower non-RDM revenue (18.9) estimate $379.
Slide 21: Customer Breakdown of Electric Deliveries and Revenues
Customer Breakdown of Electric Deliveries and Revenues 2020 Electric Delivery Volumes 2020 Electric Revenues Millions of kWh delivered ($ in millions) Commercial & $3,681 CECONY Industrial customers $3,439 share of 2020 CECONY 27,575 electric deliveries and revenues: 14,179 • 53% of volumes 9,817 •
Slide 22: Estimated Non-Weather Impact on Electric Delivery Volume and Revenues
Estimated Non-Weather Impact on Electric Delivery Volume and Revenues for the six months ended June 30, 2021 vs. June 30, 2020 Impact on Electric Delivery Volume(a) Impact on Electric Delivery Revenues(b) Millions of kWh delivered $ in thousands CECONY CECONY 8% 1% (7)% (2)% 46 (100) (881) $80 3% $3
Slide 23: CECONY Operations and Maintenance Expenses
CECONY Operations and Maintenance Expenses(a) ($ in millions) Departmental Other Expenses(b) $1,675 $1,606 $1,553 $1,563 $1,528 $1,477 $1,140 $1,072 $352 $998 $1,002 $304 Other $294 $321 $663 $755 Regulatory $469 $464 $285 $258 Fees and $476 $444 $132 YTD Assessments (c) $330 $326 Healthcare/ $153 Y
Slide 24: Composition of Regulatory Rate Base
Composition of Regulatory Rate Base(a) (as of June 30, 2021) CECONY ($ in millions) Electric NY $22,878 Gas NY 7,499 Steam NY 1,556 Total CECONY $31,933 O&R ($ in millions) O&R Electric NY $935 O&R Gas NY 506 RECO NJ 295 Total O&R $1,736 CECONY CECONY Gas CECONY O&R RECO Electric Steam Total Rate Ba
Slide 25: Average Rate Base Balances
Average Rate Base Balances ($ in millions) % AGR 6.1 3-year C $38,688 $36,777 $2,002 $34,877 $1,896 $36,686 $32,359 $1,733 $34,881 $30,559 $1,662 $33,144 $28,515 $1,551 $30,697 $26,014 $1,458 $29,008 $25,014 $1,376 $27,057 O&R $1,304 $24,638 $23,710 CECONY Actual Forecast 2016 2017 2018 2019 2020 20
Slide 26: Regulated Utilities' Rates of Return and Equity Ratios
Regulated Utilities' Rates of Return and Equity Ratios (12 Months ended June 30, 2021) Regulated Basis Allowed Actual CECONY Electric 8.8% 7.9% Gas 8.8 9.5 Steam 9.3 4.6 (a) Overall – CECONY 8.8 8.1 CECONY Equity Ratio 48.0% 46.4% O&R Electric 9.0% 8.5% Gas 9.0 10.1 RECO 9.5 2.8 (a) Overall – O&R 9.
Slide 27: Capital Expenditures
Capital Expenditures ($ in millions) $5,235 $5,249 $248 (a) $1,078 $4,419 $4,207 $47 (b) $4,085 $4,048 $1,791 $65 $400 $3 $47 $3,676 $250 $400 $3,606 $616 $1,235 $66 $205 $447 $248 $3,972 $3,751 $3,742 $3,466 $3,093 $3,210 $3,223 $2,922 2016 2017 2018 2019 2020 2021E(c)(d) 2022E (c)(d) 2023E (c)(d)
Slide 28: Utilities' Capital Expenditures
Utilities' Capital Expenditures ($ in millions) $3,972 $3,751 $3,742 Steam $3,466 $3,210 $3,223 $3,093 $2,922 Gas Depreciation Electric (a)(b) (a)(b) (a)(b) 2016 2017 2018 2019 2020 2021E 2022E 2023E (c) Actual Forecast Annual CECONY Capital Expenditures Annual O&R Capital Expenditures Electric Gas
Slide 29: Financing Plan for 2021 – 2023
Financing Plan for 2021 – 2023 Financing Plan • Issue between $1,900 million and $2,600 million of long-term debt, including for maturing securities, primarily at the Utilities, in 2021 and approximately $1,400 million in aggregate of long-term debt at the Utilities during 2022 and 2023 • Issue debt
Slide 30: 2021 Financing Activity
2021 Financing Activity Equity Financing • In June, CEI issued 10.1 million common shares for $775 million Debt Financing ($ in millions) Issuer Amount Description CEI $500 364-day Term Loan due May 2022; repaid in full in July 2021 CECONY $750 2.40% Debentures due 2031 $750 3.60% Green Debentures d
Slide 31: Capital Structure – June 30, 2021
Capital Structure – June 30, 2021 ($ in millions) Consolidated Edison, Inc. Baa2 / BBB+ / BBB+ Debt 22,110 52% Equity 20,053 48 Total $ 42,163 100% CECONY O&R Parent and Other Baa1 / A- / A- Baa2 / A- / A- Debt $ 17,635 53% Debt $ 893 51% Debt $ 3,582 52% Equity 15,924 47 Equity 848 49 Equity 3,281
Slide 32: Commercial Paper Borrowings
Commercial Paper Borrowings ($ in millions) 32
Slide 33: Income Statement – 2021 Second Quarter
Income Statement – 2021 Second Quarter ($ in millions) CECONY O&R CEBs CET(a) Other(b) Total Total operating revenues $2,486 $194 $291 $1 $(1) $2,971 Depreciation and amortization 423 24 55 — — 502 Other operating expenses 1,742 159 147 2 1 2,051 Total operating expenses 2,165 183 202 2 1 2,553 Oper
Slide 34: Income Statement – 2021 Year-to-Date
Income Statement – 2021 Year-to-Date ($ in millions) CECONY O&R CEBs CET(a) Other(b) Total Total operating revenues $5,692 $442 $515 $2 $(3) $6,648 Depreciation and amortization 838 47 114 1 — 1,000 Other operating expenses 3,746 334 284 5 — 4,369 Total operating expenses 4,584 381 398 6 — 5,369 Ope
Slide 35: Statement of Cash Flows – 2021 Year-to-Date
Statement of Cash Flows – 2021 Year-to-Date ($ in millions) CECONY O&R CEBs CET Other(a) Total Net cash flows from/(used in) operating activities $1,096 $72 $(142) $507 $(140) $1,393 Net cash flows from/(used in) investing activities (1,841) (106) (47) (6) — (2,000) Net cash flows from/(used in) fin
Slide 36: Balance Sheet – As of June 30, 2021
Balance Sheet – As of June 30, 2021 ($ in millions) CECONY O&R CEBs CET Other(a) Total ASSETS Current assets $4,293 $268 $489 $22 $38 $5,110 Investments 594 27 11 1,064 (8) 1,688 Net plant 40,434 2,517 4,370 16 2 47,339 Other noncurrent assets 6,194 445 1,704 34 405 8,782 Total assets $51,515 $3,257
Slide 37: Con Edison Sustainability Rankings and Ratings for 2020-2021
Con Edison Sustainability Rankings and Ratings for 2020-2021 • AA out of AAA Environmental, Social and Governance (ESG) rating by MSCI • 1st quartile ranking among global utilities in ESG rating by Sustainalytics • 3rd among utilities in Sustainability Index by J.D. Power • CECONY and O&R were recip
Slide 38: 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 • 2021 Proxy Statement • Highlighting how t
Slide 39: Rating Agency Credit Metrics
Rating Agency Credit Metrics Rating Agency Rating Agency Rating Agency Downgrade Rating Agency Rating / Outlook(a) Key Metric(b) Forecast(c) Threshold Moody’s Investors CEI: Baa2 / Stable CFO pre-WC(e) / Debt >13% <13% Services CECONY: Baa1 / Stable ~14.5% <14% O&R: Baa2 / Stable <15
Slide 40: Anticipated Regulatory Calendar
Anticipated Regulatory Calendar Key Dates Rate Case Filings O&R Electric & Gas Filing Submitted January 29, 2021 Hearing Date July 26, 2021 Proposed Effective Date for New Rates January 01, 2022 RECO Electric Filing Submitted May 21, 2021 Hearing Date September 20, 2021 Proposed Effective Date for N