Consolidated Edison, Inc. · NYSE:ED
Consolidated Edison — 2019 AGA Financial Forum
33 slides from Consolidated Edison's conference presentation, May 21, 2019
Slide 1: 2019 AGA Financial Forum
2019 AGA Financial Forum May 21-23, 2019
Slide 2: Available Information; Forward-Looking Statements; Non-GAAP Financial Measure
Available Information This presentation should be read together with, and is qualified in its entirety by reference to, the Form 10-K for the year ended December 31, 2018 and the Form 10-Q for the quarterly period ended March 31, 2019. Copies of the Form 10-K and Form 10-Q are available at: www.cone
Slide 3: Organizational Structure
Organizational Structure Market Cap(a): $27.7 billion Ratings(b): Baa1 / BBB+ / BBB+ Outlook(b): Stable / Stable / Stable Utilities Transmission Clean Energy Con Edison Con Edison Consolidated Clean Energy Orange and Transmission, Edison Businesses, Rockland Inc. Company of Inc. New York, Inc. Utili
Slide 4: Complementary Business Mix with Utilities at the Core
Complementary Business Mix with Utilities at the Core 2018 GAAP EPS Contribution 2018 Adjusted EPS Contribution (Non-GAAP) (a) Regulated Utilities 92% 93% Clean Energy 10% 5% Transmission 3% 3% (5)% Other (b) (1)% a. Represents Adjusted Earnings per Share. Please see slide 25 for reconciliation to G
Slide 5: Opportunities for Growth Across Our Businesses
Opportunities for Growth Across Our Businesses 2019 – 2021 Forecasted Capital Investment(a) $10.9 billion $1.0 billion $0.2 billion Regulated Utilities Clean Energy Regulated Businesses Transmission a. From 2018 Form 10-K, page 33. 5
Slide 6: 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 stability opportunities to add valu
Slide 7: Ambitious New York State Environmental Goals
Ambitious New York State Environmental Goals New York State Green New Deal proposal announced on January 17, 2019 New York State Green New Deal Goals • 100% carbon-free power by 2040 • 70% renewable electricity by 2030 • 40% carbon emissions reductions by 2030 • 80% carbon emissions reductions by 20
Slide 8: Safety is our #1 Priority
Safety is our #1 Priority Starting in the workplace and extending across our system • CECONY and O&R have achieved 60% and 69% reductions in recorded injuries and illnesses since 2009 • 88% of all Company work groups completed 2018 without a recordable injury • Our objective: accident-free workplace
Slide 9: Risk-based Capital Investment Approach
Risk-based Capital Investment Approach • We plan to invest over $3 billion between 2019 and 2021 to fortify CECONY and O&R gas infrastructure, reducing risk and underscoring our commitment to safety and the environment • Over the course of the past 20 years, the O&R team has replaced more than 370 m
Slide 10: CECONY's Sustained Performance on Main Replacement and Leak Backlog
CECONY’s Sustained Performance on Main Replacement and Leak Backlog CECONY Gas Main Replacement (miles) CECONY Year-End Leak Backlog 950 91.8 86.3 850 Actual 79.1 75.2 750 66.8 740 600 550 523 85 80 70 65 60 Goal Goal 303 239 250 Actual 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 Link to Con E
Slide 11: Deploying New Technologies to Enhance Public Safety
Deploying New Technologies to Enhance Public Safety • A Con Edison team rolled out the first of its kind smart-meter- enabled natural gas detectors to improve gas-customer safety by providing alerts of potentially unsafe conditions to our Gas Control Center • We have deployed 4,000 sensors for early
Slide 12: Operational Excellence: Reliability is What Our Customers Demand
Operational Excellence: Reliability is What Our Customers Demand 99.996% CECONY provides the best electric system reliability in the U.S. Link to Con Edison Sustainability Report: https://www.conedison.com/ehs/2018-sustainability-report/ 12
Slide 13: Supporting New York's Energy Storage Goals
Supporting New York’s Energy Storage Goals Energy storage can help ensure reliability and can reduce peak demand on our electric system • In 2018, CECONY commissioned its first battery installation designed for 2 MW / 12 MWh battery in Ozone Park, Queens to support the Brooklyn Queens Demand Managem
Slide 14: Easing Access to Distributed Resources for Customers
Easing Access to Distributed Resources for Customers • 32,000 solar customers across our utility service areas • Working to ensure a seamless connection process • Providing solar energy to low-income residents • Introduced innovative device connecting solar panels and electric vehicles to home meter
Slide 15: Supporting Electric Vehicles
Supporting Electric Vehicles • Vehicle-to-grid school bus demonstration project in White Plains, NY includes five electric school buses that will be used for grid services in the summer • Providing incentives to charge during off-peak hours to reduce system peak load • Working with NYC Department of
Slide 16: Enhancing the Customer Experience Through Smart Systems
Enhancing the Customer Experience Through Smart Systems • Launched $1.4 billion smart meter initiative targeting 5.3 million installations in New York City, Westchester and New Jersey areas by 2022 • More than 1.2 million smart meters installed to date • Website and digital customer experience lever
Slide 17: Emphasis on Energy Efficiency and Demand Response
Emphasis on Energy Efficiency and Demand Response Technology is providing customers with new ways to reduce energy use 1.98 million MWh of cumulative electric utility customer energy savings since 2009 2.74 million dekatherms of cumulative gas utility customer energy savings since 2009 17
Slide 18: Smart Solutions for Natural Gas Customers
Smart Solutions for Natural Gas Customers $223 million in funding through 2025 approval by NYSPSC in February 2019 to offset 84,100 dekatherms of peak-day gas usage* (avoiding 5 million tons of CO2 over life of program) 1. Enhanced Gas Energy Efficiency – Incent customers to install energy efficient
Slide 19: CECONY Electric & Gas Rate Filings – January 31, 2019
CECONY Electric & Gas Rate Filings – January 31, 2019(a) Electric Gas Case number 19-E-0065 Case number 19-G-0066 Rate Rate Capital Rate Rate Capital ($ millions) Change Base (b) Expenditure Change Base (b) Expenditure Rate Year 1: 2020 $473 $21,907 $2,330 $201 $7,118 $1,088 Rate Year 2: 2021 359 23
Slide 20: Clean Energy Businesses
Clean Energy Businesses 2.6 GW (AC) • Located in 17 states • 85% solar • 15% wind Copper Mountain Solar 20
Slide 21: Con Edison Transmission
Con Edison Transmission Storage • 41 Bcf of natural gas storage; 99% subscribed 50% ownership • Storage position with top regional utility customers: CECONY, NJNG, PSE&G, NYSEG Pipelines • Total pipeline length of 181 miles with interconnections to Millennium, Tennessee, and Transco pipelines • 3 na
Slide 22: Long-Range Plan – Complementary Business Mix with Utilities
Long-Range Plan – Complementary Business Mix with Utilities • Core utility business expected to continue to dominate the business mix • Investment in contracted renewables expected to complement utility growth • Transmission infrastructure investment opportunities expected to contribute to EPS 2018
Slide 23: Con Edison: Poised for a Strong Future
Con Edison: Poised for a Strong Future • One of the nation’s largest investor-owned energy-delivery companies – $12 billion in annual revenues – $54 billion asset base • Steady earnings, growing dividend – 45 consecutive years of dividend growth • Attractive capex opportunities – Three-year infrastr
Slide 24: Appendix
Appendix ED (} conEdison, inc. NYSE
Slide 25: 2018 EPS Reconciliation by Company
2018 EPS Reconciliation by Company Year Ended December 31, 2018 CECONY O&R CEBs CET Other(c) Total Reported EPS – GAAP basis $3.84 $0.19 $0.46 $0.15 $(0.21) $4.43 Income tax effect of the TCJA — — — — 0.14 0.14 Gain on acquisition of Sempra Solar Holdings, LLC, net of — — (0.39) — 0.03 (0.36) transa
Slide 26: 1Q 2019 vs. 1Q 2018 EPS Reconciliation by Company
1Q 2019 vs. 1Q 2018 EPS Reconciliation by Company Three Months Ended March 31, 2019 CECONY O&R CEBs CET Other(c) Total Reported EPS – GAAP basis $1.28 $0.10 $(0.12) $0.04 $0.01 $1.31 Hypothetical liquidation at book value (HLBV) effects of the — — 0.07 — — 0.07 Clean Energy Businesses (pre-tax) Inco
Slide 27: CECONY Electric & Gas Rate Filings
CECONY Electric & Gas Rate Filings Key Drivers of Proposed 2020 Electric Rate Increase Note: 2020 amounts were proposed in a January 2019 filing. In April 2019, CECONY preliminarily updated its January 2019 request to the NYSPSC. See page 22 in the 1Q19 Form 10-Q 27
Slide 28: CECONY Electric & Gas Rate Filings (cont'd)
CECONY Electric & Gas Rate Filings (cont'd) Key Drivers of Proposed 2020 Gas Rate Increase Note: 2020 amounts were proposed in a January 2019 filing. In April 2019, CECONY preliminarily updated its January 2019 request to the NYSPSC. See page 22 in the 1Q19 Form 10-Q 28
Slide 29: Clean Energy Businesses – PG&E Related Projects
Clean Energy Businesses – PG&E Related Projects Total Generating Capacity: 2,608 MW • 2019 forecast of adjusted earnings (Non-GAAP) of $25-35 million from PG&E-related projects (5) • Average annual O&M for PG&E-related projects: $40-$60/kW (6) • Average annual capacity factor for PG&E-related projec
Slide 30: CECONY Operations and Maintenance Expenses
CECONY Operations and Maintenance Expenses ($ in millions) Departmental Other Expenses(a) Other Regulatory Fees and $76 YTD(d) Assessments (b) Health Care/ Other Employee $114 YTD(d) Benefits Pension/ OPEBs $38 YTD(d) $398 YTD(d) $33 YTD(d) (c) (c) (c) (c) a. Other Expenses generally are either reco
Slide 31: Average Rate Base Balances
Average Rate Base Balances ($ in millions) $34,312 $32,391 $29,779 $28,515 $26,014 $24,522 $25,014 $23,795 O&R CECONY Actual Forecast(a) 2014 2015 2016 2017 2018 2019E 2020E 2021E Electric $ 17,403 $ 17,599 $ 17,971 $ 18,513 $ 20,057 $ 20,546 $ 22,365 $ 23,478 CECONY Gas 3,593 4,023 4,267 4,723 5,58
Slide 32: Capital Expenditures
Capital Expenditures ($ in millions) (a) (b) Actual Forecast(c) a. 2016 includes Stagecoach JV investment of $974 million. b. 2018 includes Con Edison Development subsidiary’s purchase of Sempra Solar Holdings, LLC. c. 2018 Form 10-K, page 33. 32
Slide 33: Utility Capital Expenditures
Utility Capital Expenditures ($ in millions) Steam Gas Electric Actual Forecast(a) Annual CECONY Capital Expenditures Annual O&R Capital Expenditures Electric Gas Steam Depreciation Electric Gas Depreciation 2014 1,500 549 83 991 105 37 61 2015 1,658 671 106 1,040 114 46 68 2016 1,819 811 126 1,106