NEW
YORK, Aug. 3, 2023 /PRNewswire/ -- Consolidated
Edison, Inc. (Con Edison) (NYSE: ED) today reported 2023 second
quarter net income for common stock of $226
million or $0.65 a share
compared with $255 million or
$0.72 a share in the 2022 second
quarter. Adjusted earnings (non-GAAP) were $210 million or $0.61 a share in the 2023 period compared with
$228 million or $0.64 a share in the 2022 period. Adjusted
earnings and adjusted earnings per share in the 2023 and 2022
periods exclude the effects of hypothetical liquidation at book
value (HLBV) accounting for tax equity investments and the related
tax impact on the parent company. Adjusted earnings and adjusted
earnings per share in the 2023 period exclude the gain and other
impacts related to the sale of its former subsidiary, Con Edison
Clean Energy Businesses, Inc. (the Clean Energy Businesses).
Adjusted earnings and adjusted earnings per share in the 2022
period exclude the net mark-to-market effects of the Clean Energy
Businesses and the related tax impact on the parent company.
For the first six months of 2023, net income for common stock
was $1,658 million or $4.74 a share compared with $857 million or $2.42 a share in the first six months of 2022.
Adjusted earnings were $856 million
or $2.45 a share in the 2023 period
compared with $750 million or
$2.12 a share in the 2022 period.
Adjusted earnings and adjusted earnings per share in the 2023
period exclude the gain and other impacts related to the sale of
the Clean Energy Businesses. Adjusted earnings and adjusted
earnings per share in the 2023 and 2022 periods exclude the effects
of HLBV accounting for tax equity investments, the net
mark-to-market effects of the Clean Energy Businesses, and the
related tax impacts on the parent company.
"Our commitment to leading the clean energy transition and
delivering world class reliability for our customers drove another
quarter of strong, stable financial results for our investors,"
said Tim Cawley, the chairman and
CEO of Con Edison. "New York's
Public Service Commission recently approved a three-year rate plan
that authorizes $11.8 billion in
capital investments that will allow us to further support
New York's transition away from
fossil fuels by investing in the electric grid to accommodate
increased demand as New Yorkers electrify their vehicles and the
heating in their homes and businesses. This quarter, we put in
service the first of our Reliable Clean City transmission lines,
allowing for the closure of inefficient fossil-fired peakers,
reducing emissions and improving air quality in the area. Through
projects like this one, our dedicated employees are creating a
bright future for our customers, investors, and the great region
we're proud to serve."
For the year of 2023, Con Edison expects its adjusted earnings
per share to be in the range of $4.85 to $5.00 per share. Con Edison's previous forecast
was in the range of $4.75 to
$4.95 per share. Adjusted
earnings per share exclude the gain and other impacts related to
the sale of the Clean Energy Businesses (approximately $2.32 a share after-tax), the effects of HLBV
accounting for tax equity investments (approximately $(0.02) a share after-tax), the net
mark-to-market effects of the Clean Energy Businesses ($(0.03) a share after-tax), and the related tax
impacts on the parent company.
See Attachment A to this press release for a reconciliation of
Con Edison's reported earnings per share to adjusted earnings per
share and reported net income for common stock to adjusted earnings
for the three and six months ended June 30, 2023 and 2022. See
Attachments B and C for the estimated effect of major factors
resulting in variations in earnings per share and net income for
common stock for the three and six months ended June 30, 2023 compared to the 2022 periods.
The company's 2023 Second Quarter Form 10-Q is being filed with
the Securities and Exchange Commission. A second quarter 2023
earnings release presentation will be available at conedison.com.
(Select "For Investors" and then select "Press Releases.")
This press release contains forward-looking statements that are
intended to qualify for the safe-harbor provisions of Section 27A
of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Forward-looking
statements are statements of future expectations and not facts.
Words such as "forecasts," "expects," "estimates," "anticipates,"
"intends," "believes," "plans," "will," "target," "guidance,"
"potential," "consider" and similar expressions identify
forward-looking statements. The forward-looking statements reflect
information available and assumptions at the time the statements
are made, and accordingly speak only as of that time.
Actual results or developments might differ materially from
those included in the forward-looking statements because of various
factors such as those identified in reports Con Edison has filed
with the Securities and Exchange Commission, including that Con
Edison's subsidiaries are extensively regulated and are subject to
substantial penalties; its utility subsidiaries' rate plans may not
provide a reasonable return; it may be adversely affected by
changes to the utility subsidiaries' rate plans; the failure of, or
damage to, its subsidiaries' facilities could adversely affect it;
a cyber-attack could adversely affect it; the failure of processes
and systems and the performance and failure to retain and attract
employees and contractors could adversely affect it; it is exposed
to risks from the environmental consequences of its subsidiaries'
operations, including increased costs related to climate change;
its ability to pay dividends or interest depends on dividends from
its subsidiaries; changes to tax laws could adversely affect it; it
requires access to capital markets to satisfy funding requirements;
a disruption in the wholesale energy markets, increased commodity
costs or failure by an energy supplier or customer could adversely
affect it; it may have substantial unfunded pension and other
postretirement benefit liabilities; it faces risks related to
health epidemics and other outbreaks, including the COVID-19
pandemic; its strategies may not be effective to address changes in
the external business environment; it faces risks related to supply
chain disruptions and inflation; and it also faces other risks that
are beyond its control. Con Edison assumes no obligation to update
or revise any forward-looking statements, whether as a result of
new information, future events or otherwise, except as required by
law.
This press release also contains financial measures, adjusted
earnings and adjusted earnings per share, that are not determined
in accordance with generally accepted accounting principles in
the United States of America
(GAAP). These non-GAAP financial measures should not be considered
as an alternative to net income for common stock or net income per
share, respectively, each of which is an indicator of financial
performance determined in accordance with GAAP. Adjusted earnings
and adjusted earnings per share exclude from net income for common
stock and net income per share, respectively, certain items that
Con Edison does not consider indicative of its ongoing financial
performance such as the gain and other impacts related to the sale
of the Clean Energy Businesses, the effects of HLBV accounting for
tax equity investments and mark-to-market accounting and the
related tax impacts on the parent company. Management uses these
non-GAAP financial measures to facilitate the analysis of Con
Edison's financial performance as compared to its internal budgets
and previous financial results and to communicate to investors and
others Con Edison's expectations regarding its future earnings and
dividends on its common stock. Management believes that these
non-GAAP financial measures are also useful and meaningful to
investors to facilitate their analysis of Con Edison's financial
performance.
Consolidated Edison, Inc. is one of the nation's largest
investor-owned energy-delivery companies, with approximately
$16 billion in annual revenues and $64 billion in assets.
The company provides a wide range of energy-related products and
services to its customers through the following subsidiaries:
Consolidated Edison Company of New
York, Inc. (CECONY), a regulated utility providing electric
service in New York City and
New York's Westchester County, gas service in
Manhattan, the Bronx, parts of Queens and parts of Westchester, and steam service in Manhattan; Orange and Rockland Utilities, Inc. (O&R),
a regulated utility serving customers in a 1,300-square-mile area
in southeastern New York State and
northern New Jersey; and Con
Edison Transmission, Inc., which falls primarily under the
oversight of the Federal Energy Regulatory Commission and manages,
through joint ventures, both electric and gas assets while seeking
to develop electric transmission projects that will bring clean,
renewable electricity to customers, focusing on New York, New England, the Mid-Atlantic states
and the Midwest.
Attachment
A
|
|
|
For the Three Months
Ended
|
|
For the Six Months
Ended
|
|
June 30,
|
|
June 30,
|
|
Earnings per Share
|
Net Income for
Common Stock (Millions
of
Dollars)
|
|
Earnings per Share
|
Net Income for
Common Stock
(Millions of
Dollars)
|
|
2023
|
2022
|
2023
|
2022
|
|
2023
|
2022
|
2023
|
2022
|
Reported earnings
per share
(basic) and net income for
common stock (GAAP basis)
|
$0.65
|
$0.72
|
$226
|
$255
|
|
$4.74
|
$2.42
|
$1,658
|
$857
|
Gain and other impacts
related to
sale of the Clean Energy
Businesses (pre-tax) (a)
|
(0.03)
|
—
|
(12)
|
—
|
|
(2.56)
|
—
|
(895)
|
—
|
Income taxes
(b)
|
(0.02)
|
—
|
(6)
|
—
|
|
0.24
|
—
|
83
|
—
|
Gain and other impacts
related to sale
of the Clean Energy Businesses (net
of tax)
|
(0.05)
|
—
|
(18)
|
—
|
|
(2.32)
|
—
|
(812)
|
—
|
HLBV effects
(pre-tax)
|
0.01
|
—
|
3
|
(1)
|
|
—
|
(0.14)
|
1
|
(49)
|
Income taxes
(c)
|
—
|
—
|
(1)
|
—
|
|
—
|
0.05
|
—
|
15
|
HLBV effects (net of
tax)
|
0.01
|
—
|
2
|
(1)
|
|
—
|
(0.09)
|
1
|
(34)
|
Net mark-to-market
effects (pre-tax)
|
—
|
(0.11)
|
—
|
(38)
|
|
0.04
|
(0.30)
|
13
|
(106)
|
Income taxes
(d)
|
—
|
0.03
|
—
|
12
|
|
(0.01)
|
0.09
|
(4)
|
33
|
Net mark-to-market
effects (net of tax)
|
—
|
(0.08)
|
—
|
(26)
|
|
0.03
|
(0.21)
|
9
|
(73)
|
Adjusted earnings
per share and
adjusted earnings (non-GAAP
basis)
|
$0.61
|
$0.64
|
$210
|
$228
|
|
$2.45
|
$2.12
|
$856
|
$750
|
|
|
(a)
|
The gain and other
impacts related to the sale of the Clean Energy Businesses for the
three months ended June 30, 2023 is comprised of an adjustment to
the gain on the sale of the Clean Energy Businesses ($(0.03) a
share or $(13) million and transaction costs of $1 million net of
tax). The gain and other impacts related to the sale of the Clean
Energy Businesses for the six months ended June 30, 2023 is
comprised of the gain on the sale of the Clean Energy Businesses
($(2.48) a share and ($2.30) a share net of tax or $(867) million
and $(804) million net of tax), transaction costs and other
accruals ($0.04 a share and $0.03 a share net of tax or $14 million
and $10 million net of tax) and the effects of ceasing to record
depreciation and amortization expenses on the Clean Energy
Businesses' assets ($(0.12) a share and $(0.08) a share net of tax
or $(41) million and $(28) million net of tax).
|
(b)
|
Amounts shown include
impact of changes in state apportionments ($(0.02) a share net of
federal taxes or $(6) million net of federal taxes) for the three
months ended June 30, 2023. The amount of income taxes for
transaction costs was calculated using a combined federal and state
income tax rate of 27% for the three months ended June 30, 2023.
Amounts shown include impact of changes in state apportionments
($0.03 a share net of federal taxes or $10 million net of federal
taxes) for the six months ended June 30, 2023. The amount of income
taxes for transaction costs and other accruals and the effects of
ceasing to record depreciation and amortization expenses was
calculated using a combined federal and state income tax rate of
27% and 32% for the six months ended June 30, 2023, respectively.
The amount of income taxes for the gain on the sale of the Clean
Energy Businesses had an effective tax rate of 7% for the six
months ended June 30, 2023.
|
(c)
|
The amount of income
taxes was calculated using a combined federal and state income tax
rate of 25% and 2% for the three and six months ended June 30,
2023, respectively, and a combined federal and state income tax
rate of 38% and 31% for the three and six months ended June 30,
2022.
|
(d)
|
The amount of income
taxes was calculated using a combined federal and state income tax
rate of 32% for the six months ended June 30, 2023, and a combined
federal and state income tax rate of 31% for the three and six
months ended June 30, 2022.
|
Attachment
B
|
Variation for the Three
Months Ended June 30, 2023 vs. 2022
|
|
Net Income for
Common Stock
(Net of Tax)
(Millions of
Dollars)
|
Earnings per
Share
|
CECONY
(a)
|
|
|
Electric base rate
increase
|
$25
|
$0.07
|
Lower operation and
maintenance expense for stock-based compensation, health
care costs and injuries and damages
|
11
|
0.03
|
Higher income from
allowance for funds used during construction
|
5
|
0.01
|
Change in incentives
earned under the electric and gas earnings adjustment
mechanisms (EAMs)
|
4
|
0.01
|
Higher electric
operations maintenance activities
|
(7)
|
(0.02)
|
Gas base rate
change
|
(7)
|
(0.02)
|
Weather impact on steam
revenue
|
(4)
|
(0.01)
|
Accretive effect of
share repurchase
|
—
|
0.01
|
Other
|
(8)
|
(0.01)
|
Total
CECONY
|
19
|
0.07
|
O&R
(a)
|
|
|
Electric base rate
increase
|
1
|
—
|
Gas base rate
increase
|
1
|
—
|
Other
|
(2)
|
—
|
Total
O&R
|
—
|
—
|
Clean Energy
Businesses (b)
|
|
|
Total Clean Energy
Businesses
|
(90)
|
(0.25)
|
Con Edison
Transmission
|
|
|
Higher investment
income
|
2
|
0.01
|
Other
|
1
|
—
|
Total Con Edison
Transmission
|
3
|
0.01
|
Other, including
parent company expenses
|
|
|
Gain and other impacts
related to the sale of the Clean Energy Businesses
|
18
|
0.05
|
Lower interest
expense
|
5
|
0.01
|
Higher interest
income
|
5
|
0.01
|
Net mark-to-market
effects
|
3
|
0.01
|
HLBV effects
|
(2)
|
(0.01)
|
Other
|
10
|
0.03
|
Total Other, including
parent company expenses
|
39
|
0.10
|
Total Reported (GAAP
basis)
|
(29)
|
(0.07)
|
Net mark-to-market
effects
|
26
|
0.07
|
HLBV effects
|
3
|
0.02
|
Gain and other impacts
related to the sale of the Clean Energy Businesses
|
(18)
|
(0.05)
|
Total Adjusted
(Non-GAAP basis)
|
$(18)
|
$(0.03)
|
a.
Under the revenue decoupling mechanisms
in the Utilities' NY electric and gas rate plans and the
weather-
normalization clause applicable to their gas businesses, revenues
are generally not affected by changes in
delivery volumes from levels assumed when rates were approved. In
general, the Utilities recover on a current
basis the fuel, gas purchased for resale and purchased power costs
they incur in supplying energy to their full-
service customers. Accordingly, such costs do not generally affect
Con Edison's results of operations.
b.
On March 1, 2023, Con Edison completed
the sale of substantially all of the assets of the Clean Energy
Businesses.
|
Attachment
C
|
Variation for the Six
Months Ended June 30, 2023 vs. 2022
|
|
Net Income for
Common Stock
(Net of Tax)
(Millions of
Dollars)
|
Earnings per
Share
|
CECONY
(a)
|
|
|
Electric base rate
increase
|
$71
|
$0.20
|
Gas base rate
increase
|
61
|
0.17
|
Lower operation and
maintenance expense from stock based compensation,
health care costs and injuries and damages
|
17
|
0.05
|
Higher income from
allowance for funds used during construction
|
12
|
0.03
|
Change in incentives
earned under the electric and gas earnings adjustment
mechanisms (EAMs)
|
7
|
0.02
|
Weather impact on steam
revenues
|
(25)
|
(0.07)
|
Accretive effect of
share repurchase
|
—
|
0.03
|
Other
|
5
|
0.02
|
Total
CECONY
|
148
|
0.45
|
O&R
(a)
|
|
|
Electric base rate
increase
|
3
|
0.01
|
Gas base rate
increase
|
3
|
0.01
|
Higher storm-related
costs
|
(2)
|
(0.01)
|
Other
|
(4)
|
(0.01)
|
Total
O&R
|
—
|
—
|
Clean Energy
Businesses (b)
|
|
|
Total Clean Energy
Businesses
|
(174)
|
(0.50)
|
Con Edison
Transmission
|
|
|
Higher investment
income
|
4
|
0.01
|
Other
|
1
|
0.01
|
Total Con Edison
Transmission
|
5
|
0.02
|
Other, including
parent company expenses
|
|
|
Gain and other impacts
related to the sale of the Clean Energy Businesses
|
783
|
2.24
|
Higher interest
income
|
12
|
0.03
|
Lower interest
expense
|
9
|
0.02
|
Net mark-to-market
effects
|
7
|
0.02
|
HLBV effects
|
(1)
|
—
|
Accretive effect of
share repurchase
|
—
|
0.03
|
Other
|
12
|
0.01
|
Total Other, including
parent company expenses
|
822
|
2.35
|
Total Reported (GAAP
basis)
|
801
|
2.32
|
Net mark-to-market
effects
|
82
|
0.24
|
HLBV effects
|
35
|
0.09
|
Gain and other impacts
related to the sale of the Clean Energy Businesses
|
(812)
|
(2.32)
|
Total Adjusted
(Non-GAAP basis)
|
$106
|
$0.33
|
a.
Under the revenue decoupling mechanisms
in the Utilities' NY electric and gas rate plans and the
weather-
normalization clause applicable to their gas businesses, revenues
are generally not affected by changes in
delivery volumes from levels assumed when rates were approved. In
general, the Utilities recover on a current
basis the fuel, gas purchased for resale and purchased power costs
they incur in supplying energy to their full-
service customers. Accordingly, such costs do not generally affect
Con Edison's results of operations.
b.
On March 1, 2023, Con Edison completed
the sale of substantially all of the assets of the Clean Energy
Businesses.
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/con-edison-reports-2023-second-quarter-earnings-301893205.html
SOURCE Consolidated Edison, Inc.