Slide 1: 3rd Quarter 2021 Earnings Release Presentation
3rd Quarter 2021 Earnings Release Presentation November 4, 2021
Slide 2: Available Information; Forward-Looking Statements; Non-GAAP Financial Measures
Available Information On November 4, 2021, Consolidated Edison, Inc. issued a press release reporting its third quarter 2021 earnings and filed with the Securities and Exchange Commission the company’s third 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 5 Pillars of our Expanded Clean Energy Commitment 5 Dividend and Earnings Announcements 6 3Q 2021 Earnings 7 - 10 3Q 2021 Developments 11 - 12 YTD 2021 Earnings 13 - 16 Five-Year Reconciliation of Reported EPS (GAAP) to Adjusted EPS (Non-GAAP) 17
Slide 4: Organizational Structure
Organizational Structure Market Cap(a): $25.7 billion (b) Ratings : Baa2 / BBB+ / BBB+ Outlook(b): Stable / Negative / Negative Utilities Clean Energy Transmission Con Edison Con Edison Transmission, Consolidated Inc. Orange and Clean Energy Edison (Con Edison Rockland Businesses, Inc. Transmission
Slide 5: The 5 Pillars of our Expanded Clean Energy Commitment
The 5 Pillars of our Expanded Clean Energy Commitment We will take a leadership role in the delivery of a clean energy future for our customers by investing in, building, and operating reliable, resilient, and innovative energy infrastructure, advancing electrification of heating and transportation,
Slide 6: Dividend and Earnings Announcements
Dividend and Earnings Announcements • On September 15, 2021, the company issued a press release reporting that the company had declared a quarterly dividend of 77.5 cents a share on its common stock. • On November 4, 2021, the company issued a press release in which it reaffirmed its previous foreca
Slide 7: 3Q 2021 Earnings
3Q 2021 Earnings Net Income for Earnings per Common Stock Share ($ in Millions) 2021 2020 2021 2020 Reported Net Income for Common Stock and EPS – GAAP basis $1.52 $1.47 $538 $493 HLBV effects (pre-tax) (0.20) 0.03 (69) 9 Income taxes (a) 0.06 (0.01) 21 (2) HLBV effects (net of tax) (0.14) 0.02 (48)
Slide 8: Walk from 3Q 2020 EPS to 3Q 2021 EPS
Walk from 3Q 2020 EPS to 3Q 2021 EPS Variance in Reported EPS (GAAP) Variance in Adjusted EPS (Non-GAAP) $0.13 $1.47 $1.52 $1.48 $1.41 $(0.04) $(0.01) $(0.02) $(0.01) $(0.02) $(0.01) $(0.04) $— $— (a) 3Q 2020 CECONY O&R CEBs CET Other(a) 3Q 2021 3Q 2020 CECONY O&R CEBs CET Other 3Q 2021 Reported Rep
Slide 9: 3Q 2021 vs. 3Q 2020 EPS Variances – Three Months Ended
3Q 2021 vs. 3Q 2020 EPS Variances – Three Months Ended Variation CECONY(a) Higher electric rate base $0.06 Lower healthcare costs 0.02 Lower stock based compensation costs 0.01 Uncollected late payment charges and certain other fees associated with COVID-19 0.01 Higher uncollectibles written off and
Slide 10: 3Q 2021 vs. 3Q 2020 EPS Reconciliation by Company
3Q 2021 vs. 3Q 2020 EPS Reconciliation by Company Three Months Ended September 30, 2021 CECONY O&R CEBs CET Other(c) Total Reported EPS – GAAP basis $1.19 $0.07 $0.30 $— $(0.04) $1.52 HLBV effects (pre-tax) — — (0.20) — — (0.20) Income taxes (a) — — 0.05 — 0.01 0.06 HLBV effects (net of tax) — — (0.
Slide 11: 3Q 2021 Developments
3Q 2021 Developments(a) CECONY & O&R • In March 2020, former New York State Governor Cuomo declared a State Disaster Emergency for the State of New York due to the COVID-19 pandemic and signed the "New York State on PAUSE" executive order that temporarily closed all non-essential businesses statewid
Slide 12: 3Q 2021 Developments (cont'd)
3Q 2021 Developments (cont'd)(a) O&R Summary of O&R New York Electric & Gas Joint Proposal • In October 2021, O&R, the New York State Department of Public Service (NYSDPS) and other parties entered into a Joint Proposal for new electric and gas rate plans for the three-year period January 2022 throu
Slide 13: YTD 2021 Earnings
YTD 2021 Earnings Net Income for Earnings per Share Common Stock ($ in Millions) 2021 2020 2021 2020 Reported Net Income for Common Stock and EPS – GAAP basis $3.23 $3.17 $1,122 $1,058 Loss from sale of a renewable electric production project (pre-tax) 0.01 — 4 — Income taxes (a) — — (1) — Loss from
Slide 14: 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) $0.61 $3.43 $0.04 $0.05 $3.39 $3.17 $0.04 $3.23 $(0.02) $(0.10) $(0.01) $(0.02) $(0.54) $(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 15: YTD 2021 vs. YTD 2020 EPS Variances – Nine Months Ended
YTD 2021 vs. YTD 2020 EPS Variances – Nine Months Ended Variation CECONY(a) Higher electric rate base $0.10 Higher gas rate base 0.07 Weather impact on steam revenues 0.05 Lower incremental costs associated with the COVID-19 pandemic 0.02 Lower stock based compensation costs 0.01 Estimated food and
Slide 16: YTD 2021 vs. YTD 2020 EPS Reconciliation by Company
YTD 2021 vs. YTD 2020 EPS Reconciliation by Company Nine months ended September 30, 2021 CECONY O&R CEBs CET Other(e) Total Reported EPS – GAAP basis $2.92 $0.15 $0.64 $(0.41) $(0.07) $3.23 Loss from sale of a renewable electric production project (pre-tax) — — 0.01 — — 0.01 Income taxes (a) — — — —
Slide 17: 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 $3.39 Income tax effect of the TCJA (0.85) 0.14 — — — Loss from sale of a renewable electric production p
Slide 18: Maintaining Focus on Our Core Principles During the Pandemic
Maintaining Focus on Our Core Principles During the Pandemic • Safety and reliable service remain top priorities for Con Edison – Mobilized a pandemic planning team in January 2020 and an incident command system structure on March 16, 2020 – More than 8,000 of our employees are working from home or
Slide 19: Financial Impacts of COVID-19
Financial Impacts of COVID-19 Impact on Income before income tax expense(a) Balance Sheet Impact ($ in millions) ($ in millions) Employee retention tax credit under CECONY $8 the CARES Act Unbilled amounts for late (100.7) payment and other charges $848.6 Lower non-RDM revenue $419.8 estimate (9.6)
Slide 20: Customer Breakdown of Electric Deliveries and Revenues
Customer Breakdown of Electric Deliveries and Revenues 2020 Electric Delivery Volumes 2020 Electric Revenues Millions of kWh delivered ($ 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 21: Estimated Non-Weather Impact on Electric Delivery Volume and Revenues
Estimated Non-Weather Impact on Electric Delivery Volume and Revenues for the nine months ended September 30, 2021 vs. September 30, 2020 Impact on Electric Delivery Volume(a) Impact on Electric Delivery Revenues(b) Millions of kWh delivered $ in thousands CECONY CECONY —% (3)% —% (1) (25) 7% 5% (51
Slide 22: CECONY Operations and Maintenance Expenses
CECONY Operations and Maintenance Expenses(a) ($ in millions) Departmental Other Expenses(b) $1,691 $1,606 $1,553 $1,563 $1,528 $1,477 $1,140 $1,072 $352 $998 $1,002 $304 Other $294 $321 $663 $740 $1,283 Regulatory $469 $464 $285 $264 $202 YTD YTD Fees and $476 $444 Assessments (c) $333 $330 Healthc
Slide 23: Composition of Regulatory Rate Base
Composition of Regulatory Rate Base(a) (as of September 30, 2021) CECONY ($ in millions) Electric NY $23,063 Gas NY 7,688 Steam NY 1,576 Total CECONY $32,327 O&R ($ in millions) O&R Electric NY $950 O&R Gas NY 517 RECO NJ 303 Total O&R $1,770 CECONY CECONY Gas CECONY O&R RECO Electric Steam Total Ra
Slide 24: Average Rate Base Balances
Average Rate Base Balances ($ 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 $23,710 CECONY Actual Forecast 2016 2017 2018 2019 2020 20
Slide 25: Regulated Utilities' Rates of Return and Equity Ratios
Regulated Utilities' Rates of Return and Equity Ratios (12 Months ended September 30, 2021) Regulated Basis Allowed Actual CECONY Electric 8.8% 8.0% Gas 8.8 9.2 Steam 9.3 4.0 (a) Overall – CECONY 8.8 8.1 CECONY Equity Ratio 48.0% 46.6% O&R Electric 9.0% 9.0% Gas 9.0 10.3 RECO 9.5 0.1 (a) Overall – O
Slide 26: Capital Expenditures
Capital Expenditures ($ in millions) $5,235 $5,249 $248 (a) $1,078 $4,419 $4,207 $47 (b) $4,085 $4,098 $1,791 $65 $400 $3 $47 $3,676 $300 $400 $3,606 $616 $1,235 $66 $205 $447 $248 $3,972 $3,751 $3,742 $3,466 $3,093 $3,210 $3,223 $2,922 2016 2017 2018 2019 2020 2021E(c)(d)(e) 2022E (c)(d) 2023E (c)(
Slide 27: Utilities' Capital Expenditures
Utilities' Capital Expenditures ($ 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 28: 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 29: 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 $750 3.60% Green Debentures d
Slide 30: Capital Structure – September 30, 2021
Capital Structure – September 30, 2021 ($ in millions) Consolidated Edison, Inc. Baa2 / BBB+ / BBB+ Debt 22,280 52% Equity 20,377 48 Total $ 42,657 100% CECONY O&R Parent and Other Baa1 / A- / A- Baa2 / A- / A- Debt $ 17,637 52% Debt $ 893 51% Debt $ 3,750 53% Equity 16,220 48 Equity 863 49 Equity 3
Slide 31: Commercial Paper Borrowings
Commercial Paper Borrowings ($ in millions) 31
Slide 32: Income Statement – 2021 Third Quarter
Income Statement – 2021 Third Quarter ($ in millions) CECONY O&R CEBs CET(a) Other(b) Total Total operating revenues $3,092 $257 $264 $1 $(1) $3,613 Depreciation and amortization 429 24 58 — 1 512 Other operating expenses 1,935 186 127 3 — 2,251 Total operating expenses 2,364 210 185 3 1 2,763 Opera
Slide 33: Income Statement – 2021 Year-to-Date
Income Statement – 2021 Year-to-Date ($ in millions) CECONY O&R CEBs CET(a) Other(b) Total Total operating revenues $8,784 $699 $779 $3 $(4) $10,261 Depreciation and amortization 1,267 71 172 1 — 1,511 Other operating expenses 5,681 520 411 9 — 6,621 Total operating expenses 6,948 591 583 10 — 8,132
Slide 34: Statement of Cash Flows – 2021 Year-to-Date
Statement of Cash Flows – 2021 Year-to-Date ($ in millions) CECONY O&R CEBs CET Other(a) Total Net cash flows from/(used in) operating activities $1,251 $106 $56 $43 $256 $1,712 Net cash flows from/(used in) investing activities (2,782) (157) (106) 608 — (2,437) Net cash flows from/(used in) financi
Slide 35: Balance Sheet – As of September 30, 2021
Balance Sheet – As of September 30, 2021 ($ in millions) CECONY O&R CEBs CET Other(a) Total ASSETS Current assets $4,349 $306 $510 $8 $(77) $5,096 Investments 597 27 7 454 (7) 1,078 Net plant 40,985 2,550 4,396 17 (1) 47,947 Other noncurrent assets 6,247 461 1,691 14 404 8,817 Total assets $52,178 $
Slide 36: Con Edison added to the S&P Global Clean Energy Index
Con Edison added to the S&P Global Clean Energy Index Due to strong ESG attributes, ED was added to the index fund (INDEXSP: SPGTCLEN) • ED was added to the index fund in October 2021 • Index designed to measure the performance of companies in global clean energy-related businesses • Companies invol
Slide 37: 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 38: 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 39: Anticipated Regulatory Calendar
Anticipated Regulatory Calendar Key Dates Rate Case Filings O&R Electric & Gas Filing Submitted January 29, 2021 Joint Proposal Filed October 29, 2021 Hearing Date December 8, 2021 Proposed Effective Date for New Rates January 1, 2022 RECO Electric Filing Submitted May 21, 2021 Hearing Date Septembe