Slide 1: Environmental, Social & Governance Presentation
Consolidated Edison, Inc. Environmental, Social & Governance Presentation August 19, 2021
Slide 2: Available Information; Forward-Looking Statements
Available Information On August 5, 2021, Consolidated Edison, Inc. issued a press release reporting its second quarter 2021 earnings and filed with the Securities and Exchange Commission the company’s second quarter 2021 Form 10-Q. This presentation should be read together with, and is qualified in
Slide 3: Timothy Cawley, President & CEO
Timothy Cawley President & Chief Executive Officer Consolidated Edison, Inc. 3
Slide 4: Con Edison: Structured to Create Value for Our Stakeholders
Con Edison: Structured to Create Value for Our Stakeholders Market Cap(a): $25.3 billion Ratings(b): 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 Rockla
Slide 5: Con Edison Environmental Stewardship
Con Edison Environmental Stewardship We have been a leader in emissions reductions, having converted our coal plants to cleaner fuel 50 years ago First non-wires alternative plan Sale of NYC power – Brooklyn Launched plants as part of Queens Demand Save-A-Watt NYSPSC Management Climate energy restru
Slide 6: Triple Bottom Line: People, Planet, Profit
Con Edison pursues broad societal benefits through a triple bottom line People Planet Profit Strong Financial Diversity, Equity & Climate Change Underpinning with Inclusion and Mitigation and Growth Driven by Community Adaptation Clean Energy Engagement Transition 6
Slide 7: Triple Bottom Line: Focus on People
Con Edison’s Triple Bottom Line: Focus on People 7
Slide 8: Triple Bottom Line: Focus on Planet
Con Edison’s Triple Bottom Line: Focus on Planet Photo: Solar panel installation at Con Edison headquarters 8
Slide 9: Triple Bottom Line: Focus on Profit
Con Edison’s Triple Bottom Line: Focus on Profit Strategic, value-creation orientation to enhance profitability and growth through the Clean Energy Transition Value Oriented Strategic • Provide steady, predictable earnings • Strengthen core utility delivery business • Maintain balance sheet stabilit
Slide 10: Committed to Economic and Environmental Justice
Con Edison Committed to Economic and Environmental Justice We are committed to increasing access to the benefits of clean energy in underserved communities. Community Power Program • The solar installations at three NYC Housing Authority developments will be capable of generating about 1 megawatt –
Slide 11: A Long History of GHG Emissions Reductions
A Long History of GHG Emissions Reductions Clean energy company with 54% reduction in direct GHG emissions since 2005 • We have avoided an aggregate of 33.4 million metric tons of CO2 emissions since 2005 • Since 2009, more than 1 million customers have upgraded to more efficient equipment, saving m
Slide 12: Committed to the Planet Through Clean Energy Production
Committed to the Planet Through Clean Energy Production Company-owned electric generation includes 70% renewable energy and no coal or nuclear 2020 Con Edison Owned Electric Generation Volumes 55.6% Total 10.2 Million MWh* 30.4% 13.9% 0.0% 0.0% 0.0% 0.0% 0.0% Solar Coal Wind Oil Other Hydro Nuclear
Slide 13: Kathy Boden
Kathy Boden Vice President*, Gas Operations Consolidated Edison Company of New York *Assumes role of Senior Vice President, Gas Operations, effective October 1, 2021 13
Slide 14: Superstorm Sandy Prompted a Study of Climate Change Risks
Superstorm Sandy’s Record Storm Surge Prompted a Study of Climate Change Risks and Adaptation Photo Credit : CBS News 14
Slide 15: Infrastructure & Climate Resilience Investment
Infrastructure & Climate Resilience Investment Ensuring our core infrastructure is resilient and ready for the future • $1 billion infrastructure investments following Superstorm Sandy completed in 2016 • $100 million commitment for storm resiliency in Westchester began in 2018 • Climate Change Vuln
Slide 16: Commitment to Science-Based Climate Resilience Planning
Commitment to Science-Based Climate Resilience Planning Climate Change Vulnerability Study describes projected impacts to energy systems through the 21st Century • 36-month study in collaboration with global consulting firm ICF Resources LLC and Columbia University’s Lamont-Doherty Earth Observatory
Slide 17: Climate Study is Specific to our Service Territory
Con Edison’s Climate Study is Specific to our Service Territory • The Study team bias-corrected and downscaled projections of Global Climate Models using weather station data from three weather station locations spanning Con Edison’s service territory, including: ‒ Central Park ‒ LaGuardia Airport ‒
Slide 18: Climate Change Projections: Temperature
Characteristics of Selected Climate Change Projections: Temperature The selected pathways for temperature provided planning and design parameters consistent with regional climate resiliency standards. High Case Low Case Temperature: RCP* 8.5 75th Percentile RCP 8.5 represents an implicit high-risk a
Slide 19: Increasingly Hot NYC Summers
Our review of Climate Data Points to Increasingly Hot NYC Summers Historically, the maximum daily temperature in Central Park exceeds 95 degrees 4 days per year – this could reach 11 days per year by 2030, and 23 days per year in 2050 Impact of increasing temperatures: • +1 degree Fahrenheit Tempera
Slide 20: Climate Change Projections: Sea Level
Characteristics of Selected Climate Change Projections: Sea Level Sea Level Rise: NPCC** projection midpoint • Acknowledges larger uncertainty in sea level rise projections • Acknowledges difference in flexible implementation approach for sea level versus other variables *Representative Concentratio
Slide 21: Climate Science Points to Rising Sea Levels in NYC
Climate Science Points to Rising Sea Levels in NYC Expected sea level rise over the next 30 years due to climate change is expected to exceed by a factor of 4 of the sea level rise experienced over the past 30 years Sea level could rise 1.3 feet over the next 30 years… …compared to 0.3 feet rise ove
Slide 22: Application of Climate Change Planning and Design Guidelines
Application of Climate Change Planning and Design Guidelines Specifications & procedures • Revisions and additions to specifications, procedures, and practices so that the 1,2 design and construction of all new energy infrastructure, whether for new business or asset replacement, recognizes climate
Slide 23: Integrating Future Standards into our Designs
Integrating Future Standards into our Designs The guideline is being integrated into engineering design specifications by looking at vertical design flood elevation and the impact of sea level rise due to climate change Flood Door 23
Slide 24: Climate Risk Governance
Climate Risk Governance Corporate Instruction on Climate Adaptation To establish the processes for adapting to changing climate conditions, including guidance for the Corporate Climate Change Planning and Design Guideline and responsibilities Senior Executive Oversight Climate Risk and Resilience Ex
Slide 25: Robert Sanchez
Robert Sanchez President & Chief Executive Officer Orange & Rockland Utilities 25
Slide 26: Delivering Energy Sustainably
Delivering Energy Sustainably We are a clean energy company with strong financials and committed to a sustainable future • Electric, gas, and steam services provide energy for Our Primary Service Area 10 million people • CECONY and O&R deliver about 44% of New York State’s electricity needs • Delive
Slide 27: Our Clean Energy Commitment
Our Clean Energy Commitment Con Edison is committed to leading and delivering the transition to the clean energy future Tripling Energy Efficiency by 2030 • Cleanest technology because it is energy use avoided • Plan to invest $1.5 billion in energy efficiency by 2025 to meet statewide targets 100%
Slide 28: Furthering Ambitious New York State Environmental Goals
Furthering Ambitious New York State Environmental Goals We support the New York State Green New Deal to achieve a carbon-free, clean energy future New York State Green New Deal Goals • 100% carbon-free power by 2040 • 70% renewable electricity by 2030 • 40% carbon emissions reductions by 2030 • 85%
Slide 29: Investing in a Clean Energy Future
Con Edison Investing in a Clean Energy Future Energy Efficiency • $1.5 billion investment by 2025 • Since 2009, more than 1 million customers have upgraded to more efficient equipment, saving costs and avoiding emissions Smart Meters • $1.4 billion smart meter initiative targeting 5.3 million instal
Slide 30: GHG Emissions Reductions Journey – Scope 1
Our Greenhouse Gas Emissions Reductions Journey – Scope 1 Con Edison is committed to leading and delivering the transition to the clean energy future Building zero-emission power • We will also invest $400 million per year over the next three years in our Clean Energy Businesses solar, wind and batt
Slide 31: Steam as an Environmentally-Sound Power Source
Steam as an Environmentally-Sound Power Source Largest steam system in U.S. eliminating about 1 million tons of CO2 annually • Con Edison operates the largest steam system in the United States, serving more than 3 million New Yorkers • System has a capacity of about 11.4 million pounds per hour • Th
Slide 32: GHG Emissions Reductions Journey – Scopes 2 & 3
Our Greenhouse Gas Emissions Reductions Journey – Scopes 2 & 3 Working with stakeholders toward a net-zero carbon future Upgrading Our Systems • Our $1.4 billion smart meter initiative targets 5.3 million smart meter installations by 2022 providing the ability to improve efficiency and lower carbon
Slide 33: The Queens Skyscraper Energy-Efficiency Upgrade
The Queens Skyscraper Energy-Efficiency Upgrade Con Edison has completed a major energy-efficiency upgrade at the One Court Square, Queens. The Highlights For the Environment • The upgrade will save an estimated 4.4 million kilowatt-hours of electricity each year, or as much as 20 percent of the bui
Slide 34: Advancing Electric Vehicle Charging
Advancing Electric Vehicle Charging Con Edison continues its efforts to achieve its clean energy goals through EV charging What We Did For the Community • Under our PowerReady initiative, Revel built the program’s first fast-charging project of 25 Fast Chargers, open to the public 24/7. This Brookly
Slide 35: Our Energy Storage Initiatives
Our Energy Storage Initiatives An example of O&R's tireless efforts to provide cleaner and more sustainable power How We Did It Overall • We have contributed to the 6MW of battery storage within our service territory. 3 MW of the 6 MW is owned by O&R, while the remaining is owned by 3rd parties • 16
Slide 36: Building Renewable Electric Generation for a Clean Energy Future
Building Renewable Electric Generation for a Clean Energy Future Approximately $1 billion in investments to expand renewable electric generation and battery storage Con Edison Company of New York & Orange and Rockland Utilities • Advocating for utility ownership of large-scale renewable electric pro
Slide 37: Mark Noyes
Mark Noyes President & Chief Executive Officer Con Edison Clean Energy Business 37
Slide 38: Con Edison Clean Energy Business
Con Edison Clean Energy Business Clean Energy Businesses (CEB) are an integral component of Con Edison’s sustainability efforts • Leading the way to Con Edison’s Clean Energy Commitment of 100% Clean Electricity by 2040 • The Clean Energy Businesses forecast the production of approximately 60 TWh of
Slide 39: Maintaining a Global Leadership Role in Clean Energy
Maintaining a Global Leadership Role in Clean Energy Clean Energy Business is an established market leader in renewables Market Leadership Distinct Competitive Advantages • 2nd largest owner of solar in N. America (IHS • Volume of purchases garners most favored Markit YE 2019) pricing and contract t
Slide 40: Clean Energy Business as a Source of Sustainable Growth
Clean Energy Business as a Source of Sustainable Growth 7th largest solar power producer in the world with assets across the U.S. 2nd largest solar power producer in North America Renewable electric production projects in operation and in construction in 20 states Copper Mountain Solar - Located in
Slide 41: Clean Energy Business Renewable Expertise
Clean Energy Business Renewable Expertise Clean Energy Business has more than a decade of experience in renewables • We have grown our business through a disciplined approach to market expansion (small projects to large, Northeast to Southwest, solar to wind to battery storage) • Early projects were
Slide 42: CEB Strategy Aligns with CEI Strategic Objectives
CEB Strategy Aligns with CEI Strategic Objectives Low-risk, low-volatility business model consists of… • Expertise in developing, owning and operating renewables and battery storage • Long-term PPAs (typically 20+ years) • Leveraged with non-recourse, self-amortizing debt • Strong development pipeli
Slide 43: Clean Energy Business Future Growth Potential
Clean Energy Business Future Growth Potential Future earnings growth is supported by a 3+GW pipeline, providing portfolio expansion and develop/transfer options • Following launch in 2010, Con Edison Clean Energy Businesses was primarily an acquirer of mid- to late- Annual Capital Investment stage d
Slide 44: Pairing Battery Storage with Renewables
Pairing Battery Storage with Renewables Battery storage is a leading market opportunity for CEB Battery Storage Market Opportunity • Battery storage is a fast-growing market opportunity and integral to continued growth of the renewables market • 2018 acquisition brought an experienced battery team a
Slide 45: Clean Energy Business Innovation
Clean Energy Business Innovation Continuous innovation has expanded our platform and improved operational effectiveness Innovation for Operational Effectiveness • We continue to innovate our operating practices to improve results: • Aerial inspections using drones • Infrared scanning • Establishing
Slide 46: Robert Hoglund
Robert Hoglund Senior Vice President & Chief Financial Officer Consolidated Edison, Inc. Chairman Con Edison Clean Energy Business Chairman Con Edison Transmission 46
Slide 47: Committed to the Environment Through Clean Energy Production
Committed to the Environment Through Clean Energy Production Company-owned electric generation includes 71% renewable energy and no coal or nuclear 2020 Electric Generation (kWh) by Fuel Type, Percent Share 0.04% 0.40% 0.60% 0.10% 23.20% 19.90% 7.50% 69.53% 28.50% 20.50% 5.60% 12.20% 42.20% 39.30% 3
Slide 48: Building Electric Transmission for a Clean Energy Future
Building Electric Transmission for a Clean Energy Future Approximately $1 billion in investments to maintain and improve reliability, enhance resiliency, and advance climate goals Con Edison Transmission (CET) • New York Energy Solutions project: Segment B -- Knickerbocker to Pleasant Valley, Rock T
Slide 49: Advancing New York's Goals: Utility Transmission and Distribution
Advancing New York’s Goals: Utility Transmission and Distribution Investment Proposals Con Edison navigates its regulatory environment with the environment in mind What’s going on? • In order to meet New York State’s Climate Leadership and Community Protection Act, we propose future investments in l
Slide 50: Transmission and Offshore Wind Opportunities
Transmission Opportunities Offshore Wind Opportunities Offshore Wind • Opportunities from Maine to New Jersey as states strive to fulfill clean energy agendas in part with offshore wind • NY 9,000 MW target by 2035 • NJ 7,500 MW target by 2035 • MA 4,000 MW target by 2027 • CT 2,000 MW target by 203
Slide 51: Capital Expenditures: Safety, Reliability and Clean Energy
Capital Expenditures: Safety, Reliability and Clean Energy Green investments advance a clean energy future, climate resiliency, emissions reduction, and decarbonization 2021E – 2023E CapEx ~$12.7 billion $0.2 billion of additional “green” spending in regulatory assets ~33% Green • Energy Efficiency
Slide 52: Yukari Saegusa
Yukari Saegusa Vice President & Treasurer Consolidated Edison, Inc. 52
Slide 53: CECONY Green Bonds Fund Clean Energy Programs
CECONY Green Bonds Fund Clean Energy Programs Green Bond proceeds will be used for CECONY’s investments in improving energy efficiency and supporting changes in customer energy usage • In 2020, CECONY issued $1.6 billion of debentures in its inaugural Green Bond offering – $600 million of 3.35 perce
Slide 54: 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 55: 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 56: Creating Shareholder Value
The Third Component of the Triple Bottomline: Creating Shareholder Value Providing shareholders with steady dividend growth over the long term • Longest continuously listed company on the NYSE • S&P 500 Dividend Aristocrat • 47 consecutive years of increasing dividends • Longest string of annual div
Slide 57: Timothy Cawley
Timothy Cawley President & Chief Executive Officer Consolidated Edison, Inc. 57
Slide 58: Adopting Governance Best Practices
Adopting Governance Best Practices Board has an appropriate blend of diversity, tenure, and skills Board Skills and Experience (Number of Directors) Board Diversity Board Tenure Source: Consolidated Edison, Inc. 2021 Proxy Statement 58
Slide 59: Con Edison: Poised for a Strong, Clean Future
Con Edison: Poised for a Strong, Clean Future Focused on maintaining leadership in the nation’s clean energy future PEOPLE • Diverse, engaged Board and workforce • Core principles of safety, operational excellence and customer experience form solid ethical foundation • Have tangible and positive imp
Slide 60: Thank you for attending!
Environmental, Social & Governance Presentation August 19, 2021 Thank you for attending!
Slide 61: Greenhouse Gas Emissions in New York State
Greenhouse Gas Emissions in New York State The transportation sector is the leading source of greenhouse gas emissions in New York State Main Sources of Greenhouse Gases in New York State Percent of carbon dioxide equivalent (CO2e) emissions 36% 30% 15% 7% 5% 4% Transportation Buildings Electricity