Consolidated Edison, Inc. · NYSE:ED
Consolidated Edison — Investor Day (October 2023)
55 slides from Consolidated Edison's investor day presentation, Oct 3, 2023
Slide 1: Clean Energy Future Presentation
Consolidated Edison, Inc. Clean Energy Future Presentation October 3, 2023 1
Slide 2: Available Information and Forward-Looking Statements
Investor Relations Available Information On August 3, 2023, Consolidated Edison, Inc. issued a press release reporting its second quarter 2023 earnings and filed with the Securities and Exchange Commission the company’s second quarter 2023 Form 10-Q. This presentation should be read together with, a
Slide 3: Introduction
Introduction Tim Cawley Chairman, President & Chief Executive Officer Consolidated Edison, Inc. 3
Slide 4: We Deliver Electricity, Gas and Steam to 10 Million People
We Deliver Electricity, Gas and Steam to 10 Million People • Con Edison of NY delivers electricity to 3.6 million customers, gas to 1.1 million customers and steam to 1,500 customers. • O&R delivers electricity to 0.3 million customers and gas to 0.1 million customers. • Con Edison operates the larg
Slide 5: Con Edison Operates the Most Reliable Electric System in the U.S.
Con Edison Operates the Most Reliable Electric System in the U.S. Our customers have significantly fewer service interruptions: • Our electric delivery systems are seven times more reliable than the national average. • That world-class reliability is critical. Maintaining it is crucial as we move to
Slide 6: 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 7: The Last 10 Years of Our Sustainability Journey
The Last 10 Years of Our Sustainability Journey Superstorm Sandy enhanced First Climate Change focus on reliability Vulnerability Study Updated our Clean and resiliency completed Energy Commitment 2012 2019 2021 2018 2020 2023 Launched Non-Pipeline Climate Change Resiliency Clean Energy Hub Solution
Slide 8: Investing in Our Clean Energy Future
Investing in Our Clean Energy Future • Rate plan with the Public Service Commission approved on July 20, 2023 – New electric and gas rates enable investment in meeting clean energy goals while supporting reliability – Spur infrastructure development in NYC and Westchester – Meet increased demand equ
Slide 9: Our Clean Energy Commitment: 5 Pillars
Our Clean Energy Commitment: 5 Pillars • Build the grid of the future. • Empower all our customers to meet their climate goals. • Reimagine the gas system. • Lead by reducing our company’s carbon footprint. • Partner with our stakeholders. 9
Slide 10: Supporting Legislation to Advance Clean Energy Goals
Supporting Legislation to Advance Clean Energy Goals Jen Hensley Senior Vice President, Corporate Affairs Consolidated Edison Company of New York, Inc. 10
Slide 11: New York State's Climate Leadership & Community Protection Act
New York State’s Climate Leadership & Community Protection Act is a Leader in Clean Energy Policy • 2025 6 GW of distributed solar deployment • 2030 70% renewable electricity, 40% carbon emissions reductions, 6 GW of energy storage • 2035 9 GW of offshore wind • 2040 100% carbon-free power • 2050 85
Slide 12: New York Greenhouse Gas Emissions Reduction Laws
New York Greenhouse Gas Emissions Reduction Laws • Assembly Bill A3006C: State ban of fossil fuel use in new small buildings* starting in 2026, and in new large buildings starting in 2029 • NYC Local Law 154: Bans use of fossil fuels for new small buildings* by 2024 and for new large buildings by 20
Slide 13: Supporting Legislation to Meet Sustainability Goals
Supporting Legislation to Meet Sustainability Goals • Urban Forest Master Plan • Solar Canopies on Parking Lots • Composting Plant Waste in Parks • Repeal of the 100-foot rule • Clean Slate Act • Utility Thermal Energy Networks 13
Slide 14: Climate Change, Unchecked
Climate Change, Unchecked • We released a new climate change study in partnership with NYSERDA and Columbia University building on our 2019 study and incorporating the latest climate projections. • We’ll invest an additional $2 billion in climate resiliency and adaptation by 2030. Climate variables
Slide 15: Build the Grid of the Future
Build the Grid of the Future Matt Ketschke President Consolidated Edison Company of New York, Inc. 15
Slide 16: Electric Peak Demand Will Grow
Electric Peak Demand Will Grow Our system peak demand is anticipated to increase by 2050. • Customer investments in electric building heating and electric vehicles will drastically increase electricity use. • Demand on our electric system will shift to a winter peak by 2040 due to electrification. 1
Slide 17: Meeting Growing Demand
Meeting Growing Demand New Distribution Substations and Transmission Stations Planned (CECONY): 2023 - 2033 Distribution (“Area”) Substations 1. Brooklyn, Gateway Park, 2028 2. Queens, Idlewild Area Station, 2028 Transmission Stations 1. Brooklyn, Vinegar Hill + Plymouth St., 2025 2. Brooklyn, Brook
Slide 18: Reliability is Critical During the Clean Energy Transition
Reliability is Critical During the Clean Energy Transition New York's aggressive clean energy goals require significant new investment in the state's energy infrastructure, creating strong growth potential for the company: • $14.6 billion in total capital investments forecasted for 2023 through 2025
Slide 19: Planning for the Future
Planning for the Future Prevention: • Flood protection in unit substation switchgear • Replace transformers • Construct clean energy hubs • Replace gas mains Mitigation: • Selective undergrounding of overhead lines • Interrupter switches installed to minimize cascading failures • Remote operating va
Slide 20: 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 has a role in achieving these goals: Potential Implications of Pathways on Our Systems Electric Gas Steam End-Use Increases by Decreases by Decreases by Sales in 2050 more than 40% 60% or more
Slide 21: Build the Grid of the Future
Build the Grid of the Future Bob Sanchez President Orange & Rockland Utilities, Inc. 21
Slide 22: Working Toward CLCPA Goals
Working Toward CLCPA Goals Investments position us to integrate offshore wind and other renewables into the grid. • Reliable Clean Cities transmission projects • Brooklyn Clean Energy Hub • Expanding points of interconnection to offshore wind and other renewables • Proposed Idlewild project • Sparki
Slide 23: Clean Energy Commitment Milestones
Clean Energy Commitment Milestones In 2023, customers installed roughly 56 MW of solar capacity and 9 MW of battery storage capacity. Customer-Owned Solar, Installed Capacity (MW) Customer-Owned Battery Storage, Installed Capacity (MW) *Q1 and Q2 represented in 2023 *Q1 and Q2 represented in 2023 23
Slide 24: Clean Energy Commitment Milestones
Clean Energy Commitment Milestones Roughly 1,500 EV plugs were installed in our service area so far in 2023, enabling exponential growth in Light Duty Electric Vehicle registrations in our service territories. EV Plugs Installed Under PowerReady Program, 2023* Goal for 2025 Cumulative Total LEVEL 2
Slide 25: 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. 25
Slide 26: How We Plan To Get There
How We Plan To Get There Vehicles: Convert from 99% fossil-fueled vehicles to 85% - 95% EVs and 5% to 15% low- to zero-carbon fuel cell vehicles. Energy Efficiency: Increase energy savings from 2 Tbtu to 4-8 Tbtu. Building Heating: Convert energy sources from more than 95% fossil fuels to 40% - 95%
Slide 27: All-in on Electric Vehicles
All-in on Electric Vehicles • Con Edison and O&R's PowerReady initiatives support the installation of 23,000 charging plugs, including 2,950 plugs in disadvantaged community areas in the near-term. • Con Edison’s SmartCharge New York rewards drivers for charging during off-peak periods. It was relau
Slide 28: Empowering Customers with Energy Efficiency Upgrades
Empowering Customers with Energy Efficiency Upgrades • The company will invest $5 billion in building energy efficiency and electrification programs this decade: – $2.2 billion from 2020-2025 – Regulatory proceeding underway for $2.5 billion more 2026-2030 28
Slide 29: Investing in Building Heating Electrification: Clean Heat Program
Investing in Building Heating Electrification: Clean Heat Program • Building electrification programs have electrified heating in over 40,000 dwelling units since 2020 with high efficiency air or geothermal heat pump systems. • Targeting an additional 80,000 dwelling units electrified through 2030.
Slide 30: Supporting Low-income Customers
Supporting Low-income Customers • Programs aim to keep energy affordable for vulnerable customers, limiting utility costs to 6 percent of average annual income. • Customer outreach efforts are increasing enrollment into the Energy Affordability Program. • Expanded energy efficiency programs for low-
Slide 31: Reimagine the Gas System
Reimagine the Gas System Kathy Boden Senior Vice President, Gas Operations Consolidated Edison Company of New York, Inc. 31
Slide 32: Changing How Energy is Sourced and Consumed
Changing How Energy is Sourced and Consumed To achieve NYS and NYC clean energy goals of net zero by 2050, our utilities need to enable a fundamental change in how energy is sourced and consumed in our service territories. 2021 GHG emissions (Con Edison and O&R service areas) Source: New Jersey port
Slide 33: Developing a Long-term Gas Strategy
Developing a Long-term Gas Strategy Enable a cost-effective clean energy transition by reducing sales volumes and delivering low-carbon fuels. • Prepare customers for clean energy transition • Focus on economic viability – Drive growth in energy efficiency and heating electrification – Leverage non-
Slide 34: Transform Gas Demand and Supply
Transform Gas Demand and Supply Reduce overall gas demand and adopt 100% low-carbon fuels to achieve net-zero greenhouse gas emissions by 2050. Utility Gas Supply (Distribution System) 100% 2020 2030 2040 2050 Fossil gas Renewable natural gas Synthetic natural gas Green hydrogen 34
Slide 35: Utility Thermal Energy Network Pilots
Utility Thermal Energy Network Pilots Unlock opportunities to use thermal energy resources to cost effectively electrify buildings at scale. The Company will install, own, and maintain each pilots’ geothermal wells and thermal energy network infrastructure. 35
Slide 36: Lead by Reducing Our Company's Carbon Footprint
Lead by Reducing Our Company’s 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 • Since 2005, Con Edison has reduced our direct emissions of nitrogen oxides by around 70% and sulfur dioxide by around 99%. • We aim to reduce greenhouse gas emissions from our steam system by 2040, and reduce methane emissions from our gas system to net zero by 2040. • We aim
Slide 38: Our Steam System
Our Steam System • Provides low-carbon energy solutions for customers, including opportunities for buildings that will have the most difficulty electrifying. • Already has the lowest rate of greenhouse gas emissions of any energy system in New York City. 38
Slide 39: Electrifying Our Fleet
Electrifying Our Fleet • We’re committed to electrifying our fleet of light-duty vehicles by 2035 with an interim goal of 80% by 2030. • Our R&D teams are evaluating solutions for medium- and heavy-duty fleet vehicles, including innovative EV bucket truck prototypes. Class 8 Prototype due Q2 2023 39
Slide 40: Protecting Biodiversity
Protecting Biodiversity Identify biodiversity priority areas and increase reporting on our biodiversity programs and their impact. • Pollinator habitat along our transmission lines at Teatown Lake Reservation in Westchester • “Rewilding” unproductive, manicured lawns into natural habitat • Partnerin
Slide 41: Partner with Our Stakeholders
Partner with Our Stakeholders Venetia Lannon Vice President, Environment, Health & Safety Consolidated Edison Company of New York, Inc. 41
Slide 42: Strategic Partnerships: A New Focus
Strategic Partnerships: A New Focus This year we aligned our grantmaking to the company’s business priorities and values. In 2023 we will provide $15M in philanthropic support to: • Climate Change & Environmental Stewardship • Workforce Development: Clean Energy & Technology • Social Justice and Env
Slide 43: Advancing a Sustainable Supply Chain
Advancing a Sustainable Supply Chain Diversity and sustainability is baked into all phases of our procurement and contracting processes. • Purchased $430 million from women- and minority-owned businesses. • Purchased $616 million from small businesses. • Green Energy Opportunities and Clean Energy A
Slide 44: Attracting and Retaining a Skilled Workforce
Attracting and Retaining a Skilled Workforce • 1,564 new hires in 2022 – • 52% of employees are highest in 14 years people of color • 9,800 employees attended • 23% of employees are leadership and career women development training in 2022 • 33% of executives* are • 613,414 hours of instructor-led, w
Slide 45: Fostering Open Communication and New Ideas
Fostering Open Communication and New Ideas • A 14-point action plan outlines concrete ways to improve, focusing on metric-driven changes and cultural transformation. • DE&I metric tied to executive compensation. • Employee forums encourage open dialogue about social issues. • 10 active employee reso
Slide 46: Committed to Environmental Justice
Committed to Environmental Justice Making sure every New Yorker shares the benefits of a cleaner, more sustainable grid. • We’re working with environmental justice advocates to build bridges within disadvantaged communities. • We’re enhancing our efforts to provide equitable distribution of benefits
Slide 47: Strong Financial Underpinnings
Strong Financial Underpinnings Robert Hoglund Senior Vice President & Chief Financial Officer Consolidated Edison, Inc. Chairman Con Edison Transmission 47
Slide 48: 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: 6% three-year rate base CAGR reflects infrastructure investment needed for the clean energy future • Solid credit ratings: strong balance
Slide 49: The Company Has Significant Economic Impact Across the City and the State
The Company Has Significant Economic Impact Across the City—and the State • Con Edison directly employs over 12,300 people, while its spending generates an additional 20,500 jobs in New York State. • For every 1 Con Edison employee, the company’s economic activity supports another 1.7 jobs in New Yo
Slide 50: Long-range Plans for a Safe, Reliable and Sustainable Future
Long-range Plans for a Safe, Reliable and Sustainable Future These plans guide our programs and investments through 2050. We envision $72 billion in investments by CECONY and O&R over the next 10 years. CECONY O&R ◦ Clean Energy: Economy-wide net-zero GHG emissions in our service area by 2050 ◦ Core
Slide 51: 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 Northeast, Mid-Atlantic and MISO regions. • NY Transco Partnership – NYISO selected the New York Energy Solution to connect upstate renewable energy
Slide 52: Tim Cawley
Tim Cawley Chairman, President & Chief Executive Officer Consolidated Edison, Inc. 52
Slide 53: Adopting Governance Best Practices
Adopting Governance Best Practices Our Board has a strong blend of diversity, tenure, and skills. 53
Slide 54: Recognition and Accolades
Recognition and Accolades • As You Sow Racial Justice Report 2022 • 2022 Human Rights Campaign Corporate Equality Index • Energy Star Partner of the Year 2022 • Forbes Best Companies for Diversity Number 2 among utilities • CPA-Zicklin Index of Corporate Political Disclosure and Accountability 2022
Slide 55: Consolidated Edison, Inc.
Consolidated Edison, Inc. Clean Energy Future Presentation October 3, 2023 55