Consolidated Edison, Inc. · NYSE:ED
Consolidated Edison — Q2 2025 Earnings Presentation
59 slides from Consolidated Edison's earnings presentation, Aug 7, 2025
Slide 1: Consolidated Edison, Inc. Leading the Way to a Clean Energy Future
Consolidated Edison, Inc. Leading the Way to a Clean Energy Future October 8, 2024 1
Slide 2: Available Information and Forward-Looking Statements
Investor Relations Available Information On August 1, 2024, Consolidated Edison, Inc. issued a press release reporting its second quarter 2024 earnings and filed with the Securities and Exchange Commission the company’s second quarter 2024 Form 10-Q. This presentation should be read together with, a
Slide 3: Introduction: Tim Cawley
Introduction Tim Cawley Chairman, President & Chief Executive Officer Consolidated Edison, Inc. Chairman & Chief Executive Officer Consolidated Edison Company of New York, Inc. 3
Slide 4: We Deliver Electricity, Gas, and Steam to Millions of People
We Deliver Electricity, Gas, and Steam to Millions of People • Con Edison of New York (CECONY) delivers electricity to 3.7 million customers, gas to 1.1 million customers, and steam to 1,520 customers. • O&R delivers electricity to 0.3 million customers and gas to 0.1 million customers. • Con Edison
Slide 5: What We Value
What We Value • Safety of our employees and our customers • Operational excellence throughout our systems • Delivering the best possible customer experience • Supporting diversity, equity, and inclusion to build a workforce that reflects our region • Providing value to our shareholders and customers
Slide 6: CECONY Operates the Most Reliable Electric System in the U.S.
CECONY Operates the Most Reliable Electric System in the U.S. Our customers have significantly fewer service interruptions: • Our electric delivery systems are nine times more reliable than the national average. • Maintaining our best-in-class reliability is crucial as we move to electrifying transp
Slide 7: Con Edison Is Pursuing a Path to Regulated Decarbonization
Con Edison Is Pursuing a Path to Regulated Decarbonization • 200-plus years as an evolving provider of electricity, natural gas and steam. • We play a key role in enabling New York State’s transition to a net-zero greenhouse gas emissions grid by 2040. • Urgency of climate change and extreme weather
Slide 8: Our Strategy for the Clean Energy Transition
Our Strategy for the Clean Energy Transition Proactive infrastructure investments and customer energy-solution offerings are key to New York State achieving the Climate Leadership & Community Protection Act goals. Build the Grid of the Enable Change Transform Supply Future • Incent energy efficiency
Slide 9: Our Clean Energy Commitment: Pillars
Our Clean Energy Commitment: 5 Pillars Our Clean Energy Commitment is a blueprint for helping achieve the state’s climate and renewable energy goals. 9
Slide 10: Support Legislation to Advance Clean Energy Goals
Support Legislation to Advance Clean Energy Goals Jen Hensley Senior Vice President, Corporate Affairs Consolidated Edison Company of New York, Inc. 10
Slide 11: Climate Leadership & Community Protection Act
Climate Leadership & Community Protection Act Establishes New York State as a Leader in Clean Energy Policy Source: NYS - Our Progress - New York's Climate Leadership & Community Protection Act (ny.gov) 11
Slide 12: New York State's Progress on Policy Targets
New York State’s Progress on Policy Targets Sector-specific targets support the clean energy transition, but further policy action and technology development are required to achieve them. 2025 2030 2035 2040 2050 39.2% 14.4% 34.0% 7.9% Electric Supply 70% NYS electricity from 100% zero-emissions ren
Slide 13: New York Greenhouse Gas Emissions Reduction Laws
New York Greenhouse Gas Emissions Reduction Laws • NYC Local Law 97: Energy efficiency and greenhouse gas emissions limits for the city’s largest buildings beginning in 2024 • NYC Local Law 154: Bans use of fossil fuels for new small buildings* beginning in 2024 and for new large buildings by 2027 •
Slide 14: Build the Grid of the Future
Build the Grid of the Future Matt Ketschke President Consolidated Edison Company of New York, Inc. 14
Slide 15: Decarbonizing the Grid Will Require Significant Market Transformation
Decarbonizing the Grid Will Require Significant Market Transformation Annual Peak Electric Demand for Combined CECONY and O&R: Hybrid vs. Deep Electrification Scenario Peak demand (Hybrid) Peak demand (Deep Electrification) 250% Transition to Winter Peak Transition to Winter Peak 250% 200% 200% 150%
Slide 16: Projects to Meet Growing Demand
Projects to Meet 2026 Champlain Hudson Power Express 2029 Parkchester Substation 2030 Growing Demand Preparation for new Propel NY Project 1250 MW of renewable, hydroelectric power from Canada to Queens electric vehicle chargers Substation Upgrades 3 new transmission lines from Long Island into CECO
Slide 17: O&R Projects to Meet Growing Demand
O&R Projects to Meet Growing Demand 2029 New Substation – Shoemaker Substation Clean Energy Hub to support Transmission and Distribution Renewable 2024 New Substation - Energy Interconnections Lovett 345 kV Station 2026 New transmission line from Burns Substation to West Nyack Substation 17
Slide 18: No Single Solution Exists to Address All Sources of Greenhouse Gas Emissions
No Single Solution Exists to Address All Sources of Greenhouse Gas Emissions Each of our commodity services will help us achieve these goals. Electric Gas Steam Forecasted End-Use Sales Increases by Decreases by Decreases by in 2050 more than 40% 60% or more 20% - 40% Role of Energy System Backbone
Slide 19: Providing Safe and Reliable Service to Our Customers
Providing Safe and Reliable Service to Our Customers • New York Independent System Operator (NYISO) sets capacity requirements for New York State. • NYISO’s Installed Capacity Market ensures there is adequate supply to meet demand under any conditions, especially system peak. Summer 2024 Installed C
Slide 20: How Electricity is Produced
How Electricity is Produced CECONY and O&R fuel mix is allocated by New York Independent System Operator * Wind Oil Other Solar Coal 2% 2% 1% 1% 0% Hydro To achieve state clean energy goals of 100% 11% zero-emission electricity by 2040, there needs to be a fundamental change in how energy is produce
Slide 21: Build the Grid of the Future: Michele O'Connell
Build the Grid of the Future Michele O’Connell President and Chief Executive Officer Orange and Rockland Utilities, Inc. 21
Slide 22: What Climate Science Is Telling Us
What Climate Science Is Telling Us Our climate change vulnerability studies estimate that heat impacts may occur sooner than previously anticipated. That means more heat waves and more frequent, more intense extreme weather. Historical 2030 Projections 2050 Projections 2030 Projections 2050 Projecti
Slide 23: Planning for the Future
Planning for the Future Prevention • Protect unit substation switchgear from flooding. • Replace transformers. • Construct clean energy hubs. • Replace gas mains. Mitigation • Underground select overhead lines. • Install interrupter switches to minimize cascading failures. • Install more remote-oper
Slide 24: O&R's Climate Resiliency Investment Plan
O&R’s Climate Resiliency Investment Plan O&R has proposed investing roughly $411 million to prevent, mitigate, and respond to climate change from 2025 – 2029.* 2025 – 2029 Total O&R Resilience Investment Proposals Projects/Programs Strategy (in $000s) ** 2025 – 2029 Total (in $000s) Strategic Underg
Slide 25: Investments to Enhance Reliability & Resiliency
Investments to Enhance Reliability & Resiliency Our investments will integrate renewables into the grid that will be important for resiliency, including offshore wind. CECONY Project Cost ($ in millions) Reliable Clean Cities transmission projects $780 Brooklyn Clean Energy Hub 810 Eastern Queens/Id
Slide 26: Empower All of Our Customers to Meet Their Climate Goals
Empower All of Our Customers to Meet Their Climate Goals Vicki Kuo Senior Vice President, Customer Energy Solutions Consolidated Edison Company of New York, Inc. 26
Slide 27: Projected Increase in Electric Peak Demand
Projected Increase in Electric Peak Demand We are preparing to meet a significant increase in electric demand as customers electrify their transportation and heating. EV adoption and forecast in CECONY and O&R’s Heat pump adoption and forecast in CECONY and service territories O&R’s service territor
Slide 28: Meeting Electric Vehicle Charging Load
Meeting Electric Vehicle Charging Load We are: • Supporting widespread and visible access to EV charging • Offering programs to thoughtfully integrate EV charging with the grid • Preparing the grid for fast-charging hubs, EV fleets, and requests to connect new customer charging stations EV PROGRAMS
Slide 29: Investing in Building Heating Electrification
Investing in Building Heating Electrification From 2020 to 2023 our Clean Heat incentive programs have converted over 35,000 residential dwelling units1 to air-source heat pumps (ASHP).2 • Residential electric and gas bill impact: – Gas to ASHP conversation: roughly equal – Oil to ASHP conversion: 1
Slide 30: Case Study: St. John's University
Case Study: St. John’s University We recently worked with St. John’s University to electrify their 102-acre campus in Queens, NY. Carnesecca Arena Marillac Hall St. Vincent Health Sciences Center • Replaced existing hot • Replaced existing • Brand-new 70,000 square water system with 3 steam boilers
Slide 31: Supporting Low-income Customers
Supporting Low-income Customers • Programs aim to keep energy affordable for vulnerable customers, limiting utility costs to 6% of average annual income. • Customer outreach efforts are increasing enrollment into the Energy Affordability Program (EAP). • At the end of 2023, approximately 15% of resi
Slide 32: Reimagine the Gas System
Reimagine the Gas System Kathy Boden Senior Vice President, Gas Operations Consolidated Edison Company of New York, Inc. 32
Slide 33: New York State Economy-wide Emissions Targets
New York State Economy-wide Emissions Targets To achieve clean energy goals, New York State will need to fundamentally change how energy is sourced and consumed across all sectors. Source: Statewide Greenhouse Gas Emissions: Beginning 1990 | State of New York (ny.gov) 33
Slide 34: Transform Gas Supply
Transform Gas Supply CECONY’s and O&R’s hybrid and deep electrification scenarios both envision major reductions in gas volumes enabled by policy action. Hybrid Deep Electrification 250 250 200 200 150 150 TBTU TBTU 100 100 50 50 0 0 2020 2025 2030 2035 2040 2045 2050 2020 2025 2030 2035 2040 2045 2
Slide 35: Developing a Long-term Gas Strategy
Developing a Long-term Gas Strategy Enable a cost-effective clean energy transition by reducing gas sales volumes and supporting low-carbon fuels. Maintain safety, Advocate for reliability, and Prepare customers Facilitate supply Focus on economic for clean energy practical policy resilience of tran
Slide 36: Lead by Reducing Our Carbon Footprint
Lead by Reducing Our Carbon Footprint Steven Parisi Senior Vice President, Central Operations Consolidated Edison Company of New York, Inc. 36
Slide 37: Greening Our Business
Greening Our Business • As of year-end 2023, we have reduced our Scope- 1 emissions by more than 54% since 2005. • We aim for zero direct greenhouse gas emissions for company-owned electric-generating units on our steam system by 2040, and to reduce fugitive methane emissions from our gas system by
Slide 38: Centralized District Steam Decarbonization Studies and Projects
Centralized District Steam Decarbonization Studies and Projects Customers benefit from our steam system, which NYC Local Law 97 identified as the lowest greenhouse gas- emitting energy source per unit of energy in the city. New York City Local Law 97 requires reducing emissions from large buildings
Slide 39: Electrifying Our Fleet
Electrifying Our Fleet • We’re committed to electrifying 100% of our fleet of light-duty vehicles by 2035, with an interim goal of 80% by 2030. • During 2023, we started a pilot to evaluate the first all-electric bucket truck in day-to-day operations. • We are expanding the current electric delivery
Slide 40: Partner with Our Stakeholders
Partner with Our Stakeholders Bob Sanchez President, Shared Services Consolidated Edison Company of New York, Inc. 40
Slide 41: Attracting and Retaining a Skilled Workforce for the Clean Energy Transition
Attracting and Retaining a Skilled Workforce for the Clean Energy Transition • 1,677 new hires in 2023 – • 54% of employees are a hiring level not seen in 50 years people of color • More than 9,000 employees • 23% of employees are attended leadership and women career-development training in 2023 • 3
Slide 42: Contributing to New York's Green Economy and Sustainable Energy Sector
Contributing to New York’s Green Economy and Sustainable Energy Sector • Con Edison supports organizations that champion a clean and equitable energy future for all New Yorkers. • In 2024, we expect to provide $18.5M in grants to nonprofit partners across our service area to advocate for environment
Slide 43: Fostering Open Communication and New Ideas
Fostering Open Communication and New Ideas • Our 14-point action plan outlines concrete ways to improve diversity, equity, and inclusion. • Employee forums encourage open dialogue about social issues. • 11 active employee resource groups engage more than 5,000 members. – Participation increased by 2
Slide 44: Advancing Strategic Supply Chain Relationships
Advancing Strategic Supply Chain Relationships Deliberate, proactive planning, and diverse supply chain relationships are essential as we navigate the clean energy transition. • Significant investments in diverse suppliers during 2023 – Purchased $569 million from minority and women-owned businesses
Slide 45: Partner with Our Stakeholders: Venetia Lannon
Partner with Our Stakeholders Venetia Lannon Vice President, Environment, Health & Safety Consolidated Edison Company of New York, Inc. 45
Slide 46: Committed to Environmental Justice
Committed to Environmental Justice We are helping ensure every New Yorker shares the benefits of a cleaner, more sustainable grid. • We’re investing in workforce development and training for green jobs. • We’re working with environmental justice advocates to build bridges with disadvantaged communit
Slide 47: We're Taking Energy Equity Seriously
We’re Taking Energy Equity Seriously 60% of New York State’s disadvantaged communities are in New York City. Our inaugural disadvantaged communities report provides data on how we serve these customers and creates a benchmark to track our progress. • Clean Energy Spending: 49% of spending on the cle
Slide 48: Strong Financial Underpinnings
Strong Financial Underpinnings Kirk Andrews Senior Vice President & Chief Financial Officer Consolidated Edison, Inc. Consolidated Edison Company of New York, Inc. 48
Slide 49: Strong Financials Underpin Our Clean Energy Transition
Strong Financials Underpin Our Clean Energy Transition • Scale: Approximately $31 billion* equity market cap provides scale as we transition. • Growing asset base: Targeted 6.4% five-year rate base compound annual growth rate reflects infrastructure investment needed for the clean energy future. • S
Slide 50: Our Economic Impact Is Significant
Our Economic Impact Is Significant • CECONY and O&R employ over 14,500 people, and our spending generates an additional 26,930 jobs in New York State. • For each CECONY/O&R employee, the company’s economic activity supports another 1.9 jobs in New York State. • CECONY’s and O&R’s $1.9 billion total
Slide 51: Maintaining Safety & Reliability Through the Clean Energy Transition
Maintaining Safety & Reliability Through the Clean Energy Transition We envision investing $28 billion* in our system from 2024 to 2028. *The difference in the total compared to the breakdown in the diagram is due to rounding. 51
Slide 52: Con Edison Transmission Pursuing Regional Clean Energy Opportunities
Con Edison Transmission Pursuing Regional Clean Energy Opportunities Focused on electric transmission development to bring clean energy to customers in the Northeast. • NY Transco Partnership – NYISO selected the New York Energy Solution to connect upstate renewable energy to downstate customers. •
Slide 53: Closing
Closing Tim Cawley Chairman, President & Chief Executive Officer Consolidated Edison, Inc. Chairman & Chief Executive Officer Consolidated Edison Company of New York, Inc. 53
Slide 54: Adopting Governance Best Practices
Adopting Governance Best Practices Our Board has a strong blend of diversity, tenure, and skills. Source: 2024 Consolidated Edison, Inc. Proxy Statement 54
Slide 55: Recognition and Accolades
Recognition and Accolades • DiversityComm Best of the Best 2023 • Diversity First 2023 Top 50 Companies for Diversity • Forbes Best Employers for Diversity 2023 • Energy Star Marketing Award 2023 • CPA-Zicklin Index of Corporate Political Disclosure and Accountability 2023 “Trendsetter” • 2023 Relia
Slide 56: Investment Thesis
Investment Thesis Con Edison’s track record makes it a bellwether holding for any equity or debt investor seeking a steady and reliable investment that can endure our changing and challenging times. • Sound governance and management practices • Steady investments in grid resiliency • Science-based a
Slide 57: Consolidated Edison, Inc. Leading the Way to a Clean Energy Future
Consolidated Edison, Inc. Leading the Way to a Clean Energy Future October 8, 2024 57
Slide 58: Appendix
Appendix
Slide 59: CECONY's Climate Resiliency Investment Plans
CECONY’s Climate Resiliency Investment Plans From 2025 – 2029, CECONY has proposed to invest roughly $900 million in resilience investments to prevent, mitigate, and respond to climate change. 2025 – 2029 Total CECONY Resilience Investment Proposals Projects/Programs Strategy (in $000s) * 2025-2029