Consolidated Edison, Inc. · NYSE:ED
Consolidated Edison — Investor Presentation (February 2024)
35 slides from Consolidated Edison's investor presentation, February 2024
Slide 1: Investor Update
Consolidated Edison, Inc. Investor Update } conEdison, inc.
Slide 2: Available Information and Forward-Looking Statements
Investor Relations Available Information On February 15, 2024, Consolidated Edison, Inc. issued a press release reporting its 2023 earnings and filed with the Securities and Exchange Commission the company’s 2023 Form 10-K. This presentation should be read together with, and is qualified in its enti
Slide 3: Organizational Structure of Regulated Transmission and Distribution
Organizational Structure of Regulated Transmission and Distribution Market Cap(a): $31.4 billion Ratings(b): Baa1 / BBB+ / BBB+ 2023 Total Assets: $66 billion(a) Outlook(b): Stable / Stable / Stable Regulated Energy Delivery FERC Regulated Transmission Consolidated Edison Orange and Rockland Company
Slide 4: We Deliver Electricity, Gas and Steam
We Deliver Electricity, Gas and Steam • CECONY delivers electricity to 3.7 million customers, gas to 1.1 million customers and steam to 1,530 customers. • O&R delivers electricity to 0.3 million customers and gas to 0.2 million customers. • CECONY operates the largest steam system in the U.S. • Con
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. Customer Interruption Rate 2023 Our customers have significantly fewer Customers Interrupted per 1,000 Customers Served service interruptions: 1200 990 1030 1000 • CECONY’s electric delivery systems 800 are nine times more reliable th
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: Financial Highlights
Financial Highlights $7.25 earnings per share (GAAP) $5.20 to $5.40 $5.07 adjusted earnings per share (non-GAAP) (non-GAAP) 6.4% annual rate 5 - 7% base growth (non-GAAP) forecasted through 2028 50 consecutive years of Utilities have approximately dividend increases $4.5 billion of major regulatory
Slide 8: Con Edison: Reduced Risk Across Key Areas
Con Edison: Reduced Risk Across Key Areas A regulated business model and one of the simplest balance sheets in the utility sector ◦ Transition to pure-play regulated business: ▪ Completed nearly all non-core asset sales ▪ Revenue predictability for all New York energy services ◦ Strong projected reg
Slide 9: Region’s Clean Energy Vision
Region’s Clean Energy Vision Con Edison is an essential partner for achieving regional clean energy goals. 2025 • New York State: 6 GW of solar 2035 • New York State: 9 GW off-shore wind • New York City: 500 MW of • New York City: City-owned non- energy storage emergency vehicles to be electric • Ne
Slide 10: Climate Change, Unchecked
Climate Change, Unchecked Our climate change studies reveal significant implications for our electric delivery systems • CECONY and O&R each released a climate change vulnerability study using the latest science-based climate projections from New York State Energy Research and Development Authority
Slide 11: Utility Resilience Plan Filing Follows Climate Study
Utility Resilience Plan Filing Follows Climate Study The NYSPSC is expected to act on resilience plan proposals by October 2024 First five years (2025 – 2029) of climate-data-driven investments of $1.3 billion submitted for approval • Prevent: Harden energy infrastructure and assets against projecte
Slide 12: 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 13: Developing a Long-term Gas Strategy
Developing a Long-term Gas Strategy Enable a cost-effective clean energy transition by reducing sales volumes and supporting low-carbon fuels. • Prepare customers for clean energy transition • Focus on economic viability – Drive growth in energy efficiency and heating – Leverage non-pipeline alterna
Slide 14: Utility Thermal Energy Network Pilots
Utility Thermal Energy Network Pilots Unlock opportunities to use thermal energy resources to cost effectively electrify buildings at scale. 14
Slide 15: Maintaining Safety & Reliability Focus Through the Clean Energy Transition
Maintaining Safety & Reliability Focus Through the Clean Energy Transition 15
Slide 16: Working to Achieve New York Clean Energy Law (CLCPA)
Working to Achieve New York Clean Energy Law (CLCPA)* 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 • Sparkil
Slide 17: Preparing for Future Electric Peak Demand Growth
Preparing for Future Electric Peak Demand Growth From 2023 to 2043 we anticipate CECONY’s peak demand to increase up to 91%; the degree depends on the timing and extent of technology, policy, and customer adoption. CECONY and O&R 2043 Projections: • Customer decisions to electrify building heating a
Slide 18: Maintaining World Class Reliability: New York City Network Design Capacity
Maintaining World Class Reliability: New York City Network Design Capacity CECONY’s 10-year forecasting process identifies capacity constraints due to net growth in customer demand; we can then develop and vet solutions in regulatory processes. Without new investment… With new investment… Above 100%
Slide 19: Meeting Growing Demand
Meeting Growing Demand New Distribution Substations and Transmission Stations Planned (CECONY) Distribution Substations 1. Brooklyn, Gateway Park, 2028 2. Queens, Idlewild Area Station, 2028 Transmission Stations 1. Brooklyn, Vinegar Hill + Plymouth St., 2025 2. Brooklyn, Brooklyn Clean Energy Hub,
Slide 20: 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 – In 2023, New York Energy Solution completed construction of 67 miles of new electric transmission and 4 ne
Slide 21: Attracting and Retaining a Skilled Workforce
Attracting and Retaining a Skilled Workforce • 1,677 employees were hired in • 54% of employees are 2023 – highest in 50 years people of color • More than 9,000 employees • 23% of employees attended leadership career are women development training in 2023 • 38% of executives* are • Over 680,000 hour
Slide 22: Committed to Environmental Justice
Committed to Environmental Justice Working towards every New Yorker sharing in 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 b
Slide 23: Con Edison: Poised for a Strong, Clean Energy Future for New York
Con Edison: Poised for a Strong, Clean Energy Future for New York • Clean energy commitment encompasses all business units – Committed to building an electric grid that is capable of delivering 100% clean energy by 2040 – Science-based climate vulnerability studies inform our utilities’ resiliency p
Slide 24: INTERNAL
Investor Update INTERNAL
Slide 25: Appendix
Appendix INTERNAL
Slide 26: Composition of Average Rate Base
Composition of Average Rate Base(a) (as of December 31, 2023) CECONY ($ in millions) Electric New York $26,680 Gas New York 9,692 Steam New York 1,820 Total CECONY $38,192 O&R ($ in millions) O&R Electric New York $1,083 O&R Gas New York 626 RECO New Jersey 340 Total O&R $2,049 Total Rate Base $40,2
Slide 27: Average Rate Base Balances
Average Rate Base Balances ($ in millions) O&R CECONY Actual Forecast 2019 2020 2021 2022 2023 2024E 2025E 2026E 2027E 2028E (b) Electric $21,149 $22,101 $23,614 $24,753 $26,680 $27,923 $29,362 $31,238 $33,301 $36,280 CECONY Gas (b) 6,408 7,110 8,008 8,924 9,692 10,428 11,061 12,008 12,827 13,828 St
Slide 28: Capital Investments
Capital Investments ($ in millions) (b) (a)(c) Actual Forecast CECONY & O&R - actual Con Edison Transmission - actual Clean Energy Businesses - actual CECONY & O&R - forecast Con Edison Transmission - forecast a. Amounts reflect the company's five-year forecast as of January 2024. b. Amounts reflect
Slide 29: Utilities' Capital Investments
Utilities' Capital Investments Steam ($ in millions) Gas Electric (a)(b Actual Forecast ) Annual CECONY Capital Investments Annual O&R Capital Investments Electric Gas Steam Depreciation Electric Gas Depreciation 2019 1,851 1,078 91 1,373 142 61 84 2020 2,080 1,044 122 1,598 159 61 90 2021 2,189 1,1
Slide 30: CET and CECONY Capital Investments Outside of Rate Plan
CET and CECONY Capital Investments Outside of Rate Plan CECONY has over $2 billion of capital investment opportunities that are not part of the electric and gas rate plan ($ in millions) In forecasted 5-year Rate Base Capital Projects Outside of Rate & adjusted EPS Plan Capital Cost In Service Date
Slide 31: Major CECONY Projected Regulatory Assets Outside of Electric and Gas Rate Plan
Major CECONY Projected Regulatory Assets Outside of Electric and Gas Rate Plan CECONY has approximately $4 billion of major regulatory assets planned for 2024-2028 ($ in millions) In forecasted 5- Year Rate Base & Projected Reg Asset Funding Status through adjusted EPS Project Outside of Rate Plan (
Slide 32: Major O&R Projected Regulatory Assets Outside of Rate Plan
Major O&R Projected Regulatory Assets Outside of Rate Plan O&R has over $500 million of major regulatory assets planned for 2024-2028 outside of rate plan ($ in millions) In forecasted 5- Year Rate Base & Projected Reg Asset Funding Status through adjusted EPS Project Outside of Rate Plan (2024-2028
Slide 33: Adopting Governance Best Practices
Adopting Governance Best Practices Our Board has a strong blend of diversity, tenure, and skills Source: 2023 DEF 14A - ED Proxy 33
Slide 34: Electric Generation Fuel Mix as Approved by NYISO
Electric Generation Fuel Mix as Approved by NYISO 2022 NYS Electric Generation Volumes(1) Total 126,143 GWh 42.4% 21.7% 21.3% 8.7% 0.1% 3.8% 1.9% 0.0% 0.1% Solar Coal Wind Oil Other Hydro Nuclear Dual Fuel Natural Gas Renewables Gas/Oil 2022 CECONY and O&R Service Area Fuel Mix Allocated by NYISO(2)
Slide 35: Con Edison Environmental, Social & Governance Resources
Con Edison Environmental, Social & Governance Resources • Policy Statement on Environmental Justice • CECONY Climate Change Vulnerability Study and Climate Change Resilience and Adaptation Plan • O&R Climate Change Vulnerability Study and Climate Change Resilience and Adaptation Plan • Diversity and
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