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Con Edison Reports 2013 Second Quarter Earnings

NEW YORK, NY -- (Marketwired) -- 08/01/13 -- Consolidated Edison, Inc. (Con Edison) (NYSE: ED) today reported 2013 second quarter net income for common stock of $172 million or $0.59 a share compared with $214 million or $0.73 a share in 2012. Earnings from ongoing operations, which exclude the effects of its lease in/lease out (LILO) transactions and the net mark-to-market effects of the competitive energy businesses (CEBs), were $160 million or $0.55 a share in 2013 compared with $178 million or $0.61 a share in 2012.

For the first six months of 2013, net income for common stock was $364 million or $1.24 a share compared with $491 million or $1.68 a share in the first six months of 2012. Earnings from ongoing operations, which exclude the effects of its LILO transactions and the net mark-to-market effects of the CEBs, were $476 million or $1.62 a share in 2013 compared with $473 million or $1.62 a share in 2012.

"Our 14,000 employees have worked hard to prepare our energy delivery systems for the summer and respond to scattered outages during several intense heat waves," said Kevin Burke, Con Edison's chairman, president and chief executive officer. "Our billions of dollars in infrastructure investments, coupled with our effective energy efficiency and demand response programs, are clearly paying off and helping us provide reliable service to our 3.6 million customers."

The following table is a reconciliation of Con Edison's reported earnings per share to earnings per share from ongoing operations and reported net income to earnings from ongoing operations for the three and six months ended June 30, 2013 and 2012.



                         Three Months Ended            Six Months Ended
                                    Net Income                   Net Income
                    Earnings per   (Millions of   Earnings per  (Millions of
                        Share        Dollars)        Share        Dollars)
                   -------------- -------------- ------------- -------------
                    2013    2012   2013    2012   2013   2012   2013   2012
------------------ ------  ------ ------  ------ ------ ------ ------ ------
Reported earnings
 per share and net
 income for common
 stock - GAAP
 basis (basic)     $ 0.59  $ 0.73 $  172  $  214 $ 1.24 $ 1.68   $364   $491
Add: LILO
 transactions (a)   (0.10)      -    (29)      -   0.41      -    121      -

Less: Net mark-to-
 market effects of
 the CEBs (b)       (0.06)   0.12    (17)     36   0.03   0.06      9     18
------------------ ------  ------ ------  ------ ------ ------ ------ ------
Ongoing operations $ 0.55  $ 0.61 $  160  $  178 $ 1.62 $ 1.62 $  476 $  473
------------------ ------  ------ ------  ------ ------ ------ ------ ------


(a) In January 2013, the United States Court of Appeals for the Federal
    Circuit reversed an October 2009 trial court ruling and disallowed
    company-claimed tax deductions relating to a 1997 transaction in which
    Consolidated Edison Development, Inc. (CED) leased property from the
    owner and then immediately subleased it back to the owner (a "LILO"
    transaction). As a result, the company recorded a charge of $150 million
    (after taxes of $102 million) in the first quarter of 2013 to reflect
    the interest on the disallowed income tax deductions and the
    recalculation of the accounting effect of the 1997 and 1999 LILO
    transactions. In June 2013, the 1999 LILO transaction was terminated, as
    a result of which the company realized a $29 million gain (after taxes
    of $22 million).
(b) After taxes of $(13) million and $27 million for the three months ended
    June 30, 2013 and 2012 and $6 million and $14 million for the six months
    ended June 30, 2013 and 2012, respectively.


For the year 2013, the company reaffirms its previous forecast of earnings per share from ongoing operations in the range of $3.65 to $3.85 a share. Earnings per share from ongoing operations exclude the effects of the LILO transactions and the net mark-to-market effects of the CEBs.

The results of operations for the three and six months ended June 30, 2013, as compared with the 2012 periods, reflect changes in the rate plans of Con Edison's utility subsidiaries, the weather impact on steam revenues and increases in certain operations and maintenance expenses, depreciation and property taxes. The results of operations include the operating results of the competitive energy businesses, including net mark-to-market effects.

Operations and maintenance expenses reflect higher surcharges for assessments and fees that are collected in revenues from customers, higher operating costs attributable to weather-related events and the movement of company facilities to accommodate municipal projects in the 2013 periods, as compared to 2012. Depreciation and property taxes were higher in the 2013 periods reflecting the impact from higher utility plant balances.

The following table presents the estimated effects on earnings per share and net income for common stock for the three and six months ended June 30, 2013, as compared with the 2012 periods, resulting from these and other major factors:



                              Three Months Ended        Six Months Ended
                                  Variation                Variation
                                2013 vs. 2012            2013 vs. 2012
                                        Net Income               Net Income
                                        for Common               for Common
                                          Stock                    Stock
                             Earnings   Variation     Earnings   Variation
                            per Share   (Millions    per Share   (Millions
                            Variation  of Dollars)   Variation  of Dollars)
-------------------------- ----------  -----------  ----------  -----------
Consolidated Edison
 Company of New York, Inc.
 (CECONY) (a)
  Rate plans (b)           $    (0.05) $       (15) $     0.16  $        48
  Weather impact on steam
   revenues                      0.02            7        0.10           28
  Operations and
   maintenance expenses
   (b)                           0.04           11       (0.16)         (47)
  Depreciation and
   property taxes               (0.07)         (19)      (0.13)         (37)
  Other                          0.02            6        0.01            2
                           ----------  -----------  ----------  -----------
Total CECONY                    (0.04)         (10)      (0.02)          (6)
Orange and Rockland
 Utilities, Inc. (O&R)          (0.01)          (5)       0.02            6
CEBs (c)                        (0.09)         (28)      (0.44)        (129)
Other, including parent
 company expenses                   -            1           -            2
-------------------------- ----------  -----------  ----------  -----------
Total variation            $    (0.14) $       (42) $    (0.44) $      (127)
========================== ==========  ===========  ==========  ===========


(a) Under the revenue decoupling mechanisms in CECONY's electric and gas
    rate plans and the weather-normalization clause applicable to the gas
    business, revenues are generally not affected by changes in delivery
    volumes from levels assumed when rates were approved. Under CECONY's
    rate plans, pension and other postretirement costs and certain other
    costs are reconciled to amounts reflected in rates for such costs.
(b) The rate plan variations include a decrease in revenues in the three
    months ended June 30, 2013, as compared to the 2012 period, when
    revenues reflected the use of certain regulatory liabilities (after-tax
    $18 million or $0.06 per share) to offset a temporary surcharge under
    CECONY's electric rate plan. The variations in operations and
    maintenance expenses include a decrease in pension costs in the 2013
    period, as compared to the 2012 period, when certain pension costs that
    were deferred from earlier periods (after-tax $21 million or $0.07 per
    share) were recognized under CECONY's electric rate plan.
(c) These variations include, for the three months ended June 30, an after-
    tax gain of $29 million or $0.10 a share in 2013 relating to the LILO
    transactions and reflect after-tax net mark-to-market losses of $17
    million or $0.06 a share in 2013 and after-tax net mark-to-market gains
    of $36 million or $0.12 a share in 2012. These variations include, for
    the six months ended June 30, an after-tax charge of $121 million or
    $0.41 a share in 2013 relating to the LILO transactions, a tax benefit
    of $15 million or $0.05 a share in 2013 resulting from the acceptance by
    the Internal Revenue Service of the company's claim for manufacturing
    tax deductions and reflect after-tax net mark-to-market gains of $9
    million or $0.03 a share in 2013 and after-tax net mark-to-market gains
    of $18 million or $0.06 a share in 2012.


The weighted average number of common shares was 293 million shares for the three and six months ended June 30, 2013 and 2012, respectively.

The changes in the energy delivered by the company's utility subsidiaries, both for actual amounts and as adjusted primarily for variations in weather and billing days, for the three and six months ended June 30, 2013, as compared with the 2012 periods, were as follows (expressed as a percentage of 2012 amounts):



                           Second Quarter Variation   Six Months Variation
                                 2013 vs. 2012            2013 vs. 2012
                              Actual      Adjusted     Actual     Adjusted
-------------------------- -----------  -----------  ----------  ----------
Con Edison of New York
  Electric                        (1.1)        (1.2)        0.1        (1.0)
  Firm - Gas                      25.3          6.1        20.0         2.7
  Steam                           10.0         (2.7)       16.7        (2.9)
O&R
  Electric                        (0.9)        (1.3)       (0.5)       (1.7)
  Firm - Gas                      11.6         (3.9)       20.5        (0.2)
-------------------------- -----------  -----------  ----------  ----------


Refer to the company's Second Quarter Form 10-Q, which is being filed with the Securities and Exchange Commission, for the consolidated balance sheets at June 30, 2013 and December 31, 2012 and the consolidated income statements for the three and six months ended June 30, 2013 and 2012. Additional information related to utility sales and revenues is available at www.conedison.com (select "Shareholder Services" and then select "Press Releases").

This press release contains forward-looking statements that reflect expectations and not facts. Actual results may differ materially from those expectations because of factors such as those identified in reports the company has filed with the Securities and Exchange Commission.

This press release also contains a financial measure, earnings from ongoing operations. This non-GAAP measure should not be considered as an alternative to net income, which is an indicator of operating performance determined in accordance with GAAP. Management uses this non-GAAP measure to facilitate the analysis of the company's ongoing performance as compared to its internal budgets and previously reported financial results. Management believes that this non-GAAP measure is also useful and meaningful to investors.

Consolidated Edison, Inc. is one of the nation's largest investor-owned energy companies, with approximately $12 billion in annual revenues and $42 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., a regulated utility providing electric, gas, and steam service in New York City and Westchester County, New York; Orange and Rockland Utilities, Inc., a regulated utility serving customers in a 1,350 square mile area in southeastern New York state and adjacent sections of northern New Jersey and northeastern Pennsylvania; Consolidated Edison Solutions, Inc., a retail energy supply and services company; Consolidated Edison Energy, Inc., a wholesale energy services company; and Consolidated Edison Development, Inc., a company that participates in infrastructure projects.

Contact:
Robert McGee
212-460-4111

Media Relations
212 460 4111 (24 hours)

Consolidated Edison, Inc.
4 Irving Place
New York NY 10003
www.conEdison.com

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