Slide 1: 2nd Quarter 2020 Earnings Release Presentation
Exhibit 99.2 2nd Quarter 2020 Earnings Release Presentation August 6, 2020
Slide 2: Available Information and Forward-Looking Statements
Available Information On August 6, 2020, Consolidated Edison, Inc. issued a press release reporting its second quarter 2020 earnings and filed with the Securities and Exchange Commission the company’s second quarter 2020 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 and Plan 4 – 5 Dividend and Earnings Announcements 6 2Q 2020 Earnings 7 – 10 Environmental, Social and Corporate Governance 11 – 23 The Coronavirus Disease (COVID-19) Pandemic 24 – 30 2Q 2020 Developments 31 – 33 YTD 2020 Earnings 34 – 37 Five-Year Rec
Slide 4: Organizational Structure
Organizational Structure Market Cap(a): $24.0 billion Ratings(b): Baa2 / BBB+ / BBB+ Outlook(b): Stable / Stable / Negative Utilities Transmission Clean Energy Con Edison Con Edison Clean Energy Consolidated Transmission, Orange and Businesses, Edison Inc. Company of Rockland Inc. New York, Inc. Uti
Slide 5: The Con Edison Plan
The Con Edison Plan Customer Focused Strategic Value Oriented Provide safe and Strengthen core utility Provide steady, reliable service delivery business predictable earnings Enhance the Pursue additional Maintain balance customer experience regulated growth sheet opportunities to add stability valu
Slide 6: Dividend and Earnings Announcements
Dividend and Earnings Announcements • On July 16, 2020, the company issued a press release reporting that the company had declared a quarterly dividend of 76.5 cents a share on its common stock. • On August 6, 2020, the company issued a press release in which it confirmed its previous forecast of ad
Slide 7: 2Q 2020 Earnings
2Q 2020 Earnings Net Income for Earnings per Share Common Stock ($ in Millions) 2020 2019 2020 2019 Reported Net Income for Common Stock and EPS – GAAP basis $0.57 $0.46 $190 $152 HLBV effects of the Clean Energy Businesses (pre-tax) 0.04 0.10 12 28 Income taxes (a) (0.01) (0.03) (3) (7) HLBV effect
Slide 8: Walk from 2Q 2019 EPS to 2Q 2020 EPS
Walk from 2Q 2019 EPS to 2Q 2020 EPS Variance in Reported EPS (GAAP) Variance in Adjusted EPS (Non-GAAP) $0.04 $0.60 $0.13 $0.57 $0.58 $(0.01) $(0.01) $0.46 $(0.01) $(0.01) $0 $0 $0 $0 (a) (a) 2Q 2019 CECONY O&R CEBs CET Other 2Q 2020 2Q 2019 CECONY O&R CEBs CET Other 2Q 2020 Reported Reported Adjus
Slide 9: 2Q 2020 vs. 2Q 2019 EPS Variances
2Q 2020 vs. 2Q 2019 EPS Variances – Three Months Ended Variation CECONY(a) Changes in rate plans $ (0.02) Primarily reflects lower non-weather related steam net revenues due to lower usage by customers. Weather impact on steam revenues 0.01 Reflects the impact of warmer spring weather in the 2019 pe
Slide 10: 2Q 2020 vs. 2Q 2019 EPS Reconciliation by Company
2Q 2020 vs. 2Q 2019 EPS Reconciliation by Company Three Months Ended June 30, 2020 CECONY O&R CEBs CET Other(c) Total Reported EPS – GAAP basis $0.45 $— $0.10 $0.04 $(0.02) $0.57 HLBV effects of the Clean Energy Businesses (pre-tax) — — 0.04 — — 0.04 Income taxes (a) — — (0.01) — — (0.01) HLBV effec
Slide 11: Sustainability Impact at a Glance
Sustainability Impact at a Glance 11
Slide 12: Con Edison Sustainability Rankings and Ratings for 2019-2020
Con Edison Sustainability Rankings and Ratings for 2019-2020 • AA out of AAA ESG rating by MSCI • 3rd among utilities in Sustainability Index by J.D. Power • 2nd in Business Customer Satisfaction among large utilities in the East by J.D. Power • 2nd among utilities by Diversity Inc. • 6th among util
Slide 13: Con Edison Sustainability Standardized Reporting
Con Edison Sustainability Standardized Reporting • Edison Electric Institute ESG Template – industry standard adopted by Con Edison in 2019 • American Gas Association ESG Template – industry standard adopted by Con Edison in 2019 • Task Force on Climate-Related Financial Disclosures (TCFD) – broad s
Slide 14: Corporate Governance Highlights
Corporate Governance Highlights Our governance model is focused on diversity, shareholder empowerment and a sustainable future 14
Slide 15: Adopting Board Best Practices
Adopting Board Best Practices Board has an appropriate blend of diversity, tenure and skills Source: Consolidated Edison, Inc. 2020 Proxy Statement 15
Slide 16: Diversity and Inclusion
Diversity and Inclusion Diversity & Inclusion Vision To be a company whose values and behaviors foster a culture of inclusion and respect for all. Diversity & Inclusion Mission To cultivate a workplace where employees are fully engaged, and able to deliver to their full potential. Value diversity an
Slide 17: Safety is our Highest Priority
Safety is our Highest Priority 17
Slide 18: Committed to the Environment Through Clean Energy Production
Committed to the Environment Through Clean Energy Production 2018 * Includes 2019 utility-scale electric production volumes ** CECONY and O&R do not control their fuel mix, which is allocated by the New York Independent System Operator EEI ESG Template https://www.conedison.com/ehs/2019-sustainabili
Slide 19: Clean Energy Business as a Source of Sustainable Growth
Clean Energy Business as a Source of Sustainable Growth 19
Slide 20: Steam as an Environmentally-Sound Power Source
Steam as an Environmentally-Sound Power Source 20
Slide 21: Benefiting Customers and the Environment Through Energy Efficiency
Benefiting Customers and the Environment Through Energy Efficiency and Demand Management Programs 21
Slide 22: Commitment to Science-Based Climate Resilience Planning
Commitment to Science-Based Climate Resilience Planning Link to Con Edison Climate Change Vulnerability Study: https://www.coned.com/en/our-energy-future/our-energy-vision/storm-hardening-enhancement-plan 22
Slide 23: Electrifying Our Transportation
Electrifying Our Transportation Electric vehicle infrastructure and customer incentives pave the way for electric vehicle ownership in our service territory • In July 2020, NYSPSC established a light-duty electric vehicle “make-ready” program that includes budgets of $290 million and $24 million for
Slide 24: Financial Impacts of COVID-19 for the Six Months Ended June 30, 2020
Financial Impacts of COVID-19 for the Six Months Ended June 30, 2020 Impact on Income before income tax expense(a) Balance Sheet Impact ($ in millions) ($ in millions) CECONY Employee retention tax credit $5.2 under the CARES Act Foregone late payment (22.7) charges/other charges Increase in allowan
Slide 25: 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 and an incident command system structure on March 16th – More than 8,000 of our employees are working from home or remotely
Slide 26: Customer Breakdown of Electric Deliveries and Revenues
Customer Breakdown of Electric Deliveries and Revenues 26
Slide 27: Estimated Non-Weather Impact on Electric Delivery Volume and Revenues
Estimated Non-Weather Impact on Electric Delivery Volume and Revenues for March 16 to July 31, 2020 Impact on Electric Delivery Volume(a) Impact on Electric Delivery Revenues(b) Millions of kWh delivered $ in thousands CECONY CECONY 8% 11% 389 46,682 142 15,767 (195) (10,631) (604) (40,997) (465) (3
Slide 28: Liquidity Update
Liquidity Update • Con Edison’s $2,250 million credit facility supports commercial paper borrowing with $437 million of remaining capacity available as of June 30, 2020. Additionally Con Edison had $1,144 million of cash and temporary cash investments as of June 30, 2020. • Financing plan for 2020:
Slide 29: Transparent Rate-Making Process
Transparent Rate-Making Process • About 87% of CEI revenues and 94% of Utilities revenues are subject to a regulatory recovery mechanism, e.g. revenue decoupling mechanisms • Rate plans provide for a total of $54 million for bad debt expense at CECONY and O&R for 2020 • Currently we have no open rat
Slide 30: Supporting the Community During the Pandemic
Supporting the Community During the Pandemic • Deployed 1 MW generator to support the field hospital setup located at the Brooklyn Cruise Terminal in Red Hook • Expanded grid service or provided engineering services for emergency field hospitals: – At Westchester County Center to support a 100-bed f
Slide 31: 2Q 2020 Developments
2Q 2020 Developments(a) CECONY & O&R • In March 2020, New York State Governor Cuomo declared a State Disaster Emergency for the State of New York, due to the COVID-19 pandemic and signed the "New York State on PAUSE" executive order that closed all non-essential businesses statewide. New York State
Slide 32: 2Q 2020 Developments (cont'd)
2Q 2020 Developments (cont'd)(a) CECONY & O&R • In July 2020, CECONY, O&R and NYSPSC Staff executed a settlement agreement, subject to NYSPSC approval, that resolves the NYSPSC investigation of the preparation and response to the March 2018 Winter Storms Riley and Quinn. At June 30, 2020, CECONY and
Slide 33: 2Q 2020 Developments (cont'd)
2Q 2020 Developments (cont'd)(a) CECONY & O&R • In June 2020, CECONY reached a four-year collective bargaining agreement with its largest union covering approximately 7,100 employees, effective June 21, 2020. (page 48) • In July 2020, the New Jersey Board of Public Utilities authorized RECO and othe
Slide 34: YTD 2020 Earnings
YTD 2020 Earnings Net Income for Earnings per Share Common Stock ($ in Millions) 2020 2019 2020 2019 Reported Net Income for Common Stock and EPS – GAAP basis $1.69 $1.77 $565 $576 HLBV effects of the Clean Energy Businesses (pre-tax) 0.10 0.15 29 49 Income taxes (a) (0.03) (0.04) (7) (12) HLBV effe
Slide 35: Walk from YTD 2019 EPS to YTD 2020 EPS
Walk from YTD 2019 EPS to YTD 2020 EPS Variance in Reported EPS (GAAP) Variance in Adjusted EPS (Non-GAAP) $1.96 $0.05 $0.02 $1.95 $1.77 $(0.06) $(0.02) $0.02 $1.69 $(0.06) $(0.02) $(0.02) $0.00 $0.00 (a) YTD 2019 CECONY O&R CEBs CET Other YTD 2020 YTD 2019 CECONY O&R CEBs CET Other (a) YTD 2020 Rep
Slide 36: YTD 2020 vs. YTD 2019 EPS Variances
YTD 2020 vs. YTD 2019 EPS Variances – Six Months Ended Variation CECONY(a) Changes in rate plans $ 0.10 Reflects higher electric and gas net base revenues of $0.02 a share and $0.08 a share, respectively, primarily due to electric and gas base rate increases in January 2019 under the company's rate
Slide 37: YTD 2020 vs. YTD 2019 EPS Reconciliation by Company
YTD 2020 vs. YTD 2019 EPS Reconciliation by Company Six months ended June 30, 2020 CECONY O&R CEBs CET Other(c) Total Reported EPS – GAAP basis $1.67 $0.09 $(0.15) $0.08 $— $1.69 HLBV effects of the Clean Energy Businesses (pre-tax) — — 0.10 — — 0.10 Income taxes (a) — — (0.03) — — (0.03) HLBV effec
Slide 38: Five-Year Reconciliation of Reported EPS to Adjusted EPS
Five-Year Reconciliation of Reported EPS (GAAP) to Adjusted EPS (Non-GAAP) 12 Months Ending December 31, 2016 2017 2018(a) 2019(a) 2020(a)(b) Reported EPS – GAAP basis $4.15 $4.97 $4.43 $4.09 $3.99 Income tax effect of the TCJA — (0.85) 0.14 — — HLBV effects of the Clean Energy Businesses (pre-tax)
Slide 39: Utilities' Rate Adjustments for TCJA
Utilities' Rate Adjustments for Tax Cuts and Jobs Act of 2017 (TCJA)(a) New York State Public Service Commission Order in Case 17-M-0815 – Proceeding on Motion of the Commission on Changes in Law that May Affect Rates (August 9, 2018) CECONY Electric • Pursuant to the rate plan approved on January 1
Slide 40: Utilities' Rate Adjustments for TCJA (cont'd)
Utilities' Rate Adjustments for Tax Cuts and Jobs Act of 2017 (TCJA) (cont'd)(a) O&R Electric and Gas • O&R, pursuant to the November 2018 joint proposal (Case 18-E-0067; 18-G-0068), is reflecting its TCJA net benefits as follows: – annual ongoing savings of $18 million – pass back of 2018 savings (
Slide 41: Tax Update on the CARES Act
Tax Update on the CARES Act Coronavirus Aid, Relief, and Economic Security (CARES) Act: • Enacted on March 27, 2020 in response to the COVID-19 pandemic • Contains $2.3 trillion in economic relief to eligible businesses and individuals impacted by the Coronavirus outbreak Opportunities Applicable to
Slide 42: CECONY Operations and Maintenance Expenses
CECONY Operations and Maintenance Expenses(a) ($ in millions) Departmental Other Expenses(b) $1,612 $1,572 $1,597 $1,594 $1,508 $1,521 $1,417 $344 Other $1,096 $1,041 $550 $308 $954 $958 $273 $250 $277 Regulatory $682 Fees and $469 Assessments (c) $464 $260 $476 $444 $167 YTD Healthcare/ $159 $350 $
Slide 43: Composition of Regulatory Rate Base
Composition of Regulatory Rate Base(a) (as of June 30, 2020) CECONY ($ in millions) Electric NY $21,728 Gas NY 6,839 Steam NY 1,470 Total CECONY $30,037 O&R ($ in millions) O&R Electric NY $873 O&R Gas NY 474 RECO NJ 258 Total O&R $1,605 CECONY CECONY Gas CECONY O&R RECO Total Rate Base $31,642 Elec
Slide 44: Average Rate Base Balances
Average Rate Base Balances ($ in millions) 5.4% 3-year CAGR $35,783 $33,872 $1,796 $31,930 $30,559 $1,741 $33,987 $1,661 $32,131 $28,515 $1,551 $30,269 $1,458 $29,008 $25,014 $26,014 $24,522 $1,376 $27,057 $1,304 O&R $1,357 $24,638 $23,165 $23,710 CECONY Actual Forecast 2015 2016 2017 2018 2019 2020
Slide 45: Regulated Utilities' Rates of Return and Equity Ratios
Regulated Utilities' Rates of Return and Equity Ratios (12 Months ended June 30, 2020) Regulated Basis Allowed Actual CECONY Electric 8.9% 8.8% Gas 8.9 8.9 Steam 9.3 5.8 (a) Overall – CECONY 8.9 8.7 CECONY Equity Ratio 48.0% 47.3% O&R Electric 9.0% 8.5% Gas 9.0 9.7 RECO 9.6 5.6 (a) Overall – O&R 9.1
Slide 46: Capital Expenditures
Capital Expenditures ($ in millions) $5,235(a) $5,249 $248 $1,078 $1,791(b) $3,944 $3,937 $11 $24 $3,792 $3,676 $3,606 $400 $400 $76 $3,418 $1,235 $66 $205 $400 $447 $248 $823 $3,533 $3,513 $3,316 $3,093 $3,210 $3,223 $2,922 $2,595 (c) (c) (c) 2015 2016 2017 2018 2019 2020E 2021E 2022E Actual Foreca
Slide 47: Utilities' Capital Expenditures
Utilities' Capital Expenditures ($ in millions) $3,533 $3,513 $3,223 $3,316 Steam $3,093 $3,210 $2,922 $2,595 Gas Electric Depreciation 2015 2016 2017 2018 2019 2020E (a) 2021E (a) 2022E (a) Actual Forecast (b) Annual CECONY Capital Expenditures Annual O&R Capital Expenditures Electric Gas Steam Dep
Slide 48: Financing Plan for 2020 – 2022
Financing Plan for 2020 – 2022 Financing Plan • Issue between $1,500 million and $2,000 million of long-term debt, primarily at the Utilities, in 2020 and approximately $1,800 million in aggregate of long-term debt at the Utilities during 2021 and 2022, in addition to the issuance of long-term debt
Slide 49: Capital Structure – June 30, 2020
Capital Structure – June 30, 2020 ($ in millions) Consolidated Edison, Inc. Baa2 / BBB+ / BBB+ Debt $ 21,114 53% Equity 18,441 47 Total $ 39,555 100% CECONY O&R Parent and Other Baa1 / A- / A- Baa1 / A- / A- Debt $ 16,194 53% Debt $ 818 51% Debt $ 4,102 55% Equity 14,265 47 Equity 778 49 Equity 3,39
Slide 50: Commercial Paper Borrowings
Commercial Paper Borrowings ($ in millions) 50
Slide 51: Utilities' Sales and Revenues – Electric Second Quarter
Utilities' Sales and Revenues – Electric Second Quarter ($ in millions) Electric – 2nd Quarter Millions of Kilowatt-hours Revenues in Millions 2020 2019 2020 2019 Con Edison of New York Residential and Religious 2,294 2,101 $616 $541 Commercial and Industrial 2,117 2,283 414 429 Retail choice custom
Slide 52: Utilities' Sales and Revenues – Electric Year-to-Date
Utilities' Sales and Revenues – Electric Year-to-Date ($ in millions) Electric – Year-to-Date Millions of Kilowatt-hours Revenues in Millions 2020 2019 2020 2019 Con Edison of New York Residential and Religious 4,637 4,516 $1,225 $1,137 Commercial and Industrial 4,518 4,743 848 848 Retail choice cus
Slide 53: Utilities' Sales and Revenues – Gas Second Quarter
Utilities' Sales and Revenues – Gas Second Quarter ($ in millions) Gas – 2nd Quarter Thousands of Dekatherms Revenues in Millions 2020 2019 2020 2019 Con Edison of New York Residential 10,602 9,816 $192 $183 General 6,646 6,550 63 76 Firm Transportation 17,112 16,037 124 120 Total Firm Sales and Tra
Slide 54: Utilities' Sales and Revenues – Gas Year-to-Date
Utilities' Sales and Revenues – Gas Year-to-Date ($ in millions) Gas – Year-to-Date Thousands of Dekatherms Revenues in Millions 2020 2019 2020 2019 Con Edison of New York Residential 32,846 36,940 $575 $621 General 19,048 20,983 201 254 Firm Transportation 50,029 51,518 428 388 Total Firm Sales and
Slide 55: Utilities' Sales and Revenues – Steam Second Quarter and Year-to-Date
Utilities' Sales and Revenues – Steam Second Quarter and Year-to-Date ($ in millions) Steam – 2nd Quarter Millions of Pounds Revenues in Millions 2020 2019 2020 2019 Con Edison of New York General 65 60 $4 $4 Apartment House 1,037 1,033 26 25 Annual Power 1,920 2,286 52 60 Total Sales (a) 3,022 3,37
Slide 56: Income Statement – 2020 Second Quarter
Income Statement – 2020 Second Quarter ($ in millions) CECONY O&R CEBs CET Other(a) Total Total operating revenues $2,345 $175 $198 $1 $— $2,719 Depreciation and amortization 396 23 57 — — 476 Other operating expenses 1,560 142 59 2 1 1,764 Total operating expenses 1,956 165 116 2 1 2,240 Operating
Slide 57: Income Statement – 2020 Year-to-Date
Income Statement – 2020 Year-to-Date ($ in millions) CECONY O&R CEBs CET Other(a) Total Total operating revenues $5,200 $408 $344 $2 $(1) $5,953 Depreciation and amortization 786 45 115 — — 946 Other operating expenses 3,282 298 133 5 2 3,720 Total operating expenses 4,068 343 248 5 2 4,666 Operatin
Slide 58: Statement of Cash Flows – 2020 Year-to-Date
Statement of Cash Flows – 2020 Year-to-Date ($ in millions) (a) CECONY O&R CEBs CET Other Total Net cash flows from/(used in) operating activities $975 $74 $653 $(4) $(518) $1,180 Net cash flows from/(used in) investing activities (1,574) (95) (273) 10 — (1,932) Net cash flows from/(used in) financi
Slide 59: Balance Sheet – As of June 30, 2020
Balance Sheet – As of June 30, 2020 ($ in millions) CECONY O&R CEBs CET Other(a) Total ASSETS Current assets $3,747 $231 $568 $22 $(4) $4,564 Investments 475 25 — 1,587 (7) 2,080 Net plant 38,205 2,377 4,299 17 (1) 44,897 Other noncurrent assets 4,897 376 1,852 14 401 7,540 Total assets $47,324 $3,0
Slide 60: 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 Ÿ CEI: Baa2 / Stable CFO pre-WC(e) / Debt Ÿ 15% Ÿ <13% Services Ÿ CECONY: Baa1 / Stable Ÿ 14% - 16% Ÿ <14% Ÿ O&R: Baa1 / Negative Ÿ
Slide 61: List of Notes to 2020 Second Quarter Form 10-Q Financial Statements
List of Notes to 2020 Second Quarter Form 10-Q Financial Statements Page A – Summary of Significant Accounting Policies and Other Matters 19 - 23 B – Regulatory Matters 23 - 27 C – Capitalization 27 - 28 D – Short-Term Borrowing 28 E – Pension Benefits 28 - 29 F – Other Postretirement Benefits 30 G