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Con Edison Reports 2013 Earnings

NEW YORK, NY -- (Marketwired) -- 02/20/14 -- Consolidated Edison, Inc. (Con Edison) (NYSE: ED) today reported 2013 net income for common stock of $1,062 million or $3.62 a share compared with $1,138 million or $3.88 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 $1,112 million or $3.80 a share in 2013 compared with $1,098 million or $3.75 a share in 2012.

For the fourth quarter of 2013, net income for common stock was $234 million or $0.80 a share compared with $207 million or $0.71 a share in the fourth quarter of 2012. Earnings from ongoing operations for the fourth quarter of 2013, which exclude the net mark-to-market effects of the CEBs, were $202 million or $0.69 a share compared with $203 million or $0.69 a share in the fourth quarter of 2012.

"We are entering 2014 with new rate plans that provide stability for customers, while allowing us to maintain our commitment to system enhancements that will protect New Yorkers from the next major storm," said John McAvoy, president and CEO of Consolidated Edison, Inc. "We will continue to enhance our communications with customers, including the mobile and electronic platforms that many prefer. We also will maintain our commitment to the environment with our business operations, promoting renewable resources, oil-to-gas conversions, and new energy efficiency solutions for homes and businesses."

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 months and year ended December 31, 2013 and 2012.

                          Three Months Ended              Year Ended
                        Earnings     Net Income     Earnings     Net Income
                          per       (Millions of      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)             $ 0.80 $ 0.71 $  234 $  207 $ 3.62 $ 3.88 $1,062 $1,138

 transactions (a)         -      -      -      -   0.32      -     95      -

Less: Net mark-to-
 market effects of
 the CEBs (b)          0.11   0.02     32      4   0.14   0.13     45     40
                     ------ ------ ------ ------ ------ ------ ------ ------
Ongoing operations   $ 0.69 $ 0.69 $  202 $  203 $ 3.80 $ 3.75 $1,112 $1,098
                     ------ ------ ------ ------ ------ ------ ------ ------

(a) In 2013, a court disallowed tax losses claimed by Con Edison relating to
    Con Edison Development's LILO transactions and the company subsequently
    terminated the transactions, resulting in a charge to earnings of $95
    million (after taxes of $63 million).
(b) After taxes of $21 million and $2 million for the three months ended
    December 31, 2013 and 2012 and $30 million and $29 million for the years
    ended December 31, 2013 and 2012, respectively.

The company expects its earnings from ongoing operations for the year 2014 to be in the range of $3.65 to $3.85 per share. Earnings per share from ongoing operations exclude the net mark-to-market effects of the CEBs. The forecast reflects capital investments of $2,608 million, substantially all of which will be spent at the company's regulated utilities. The company expects to meet its 2014 capital requirements, including for maturing securities, through internally-generated funds and the issuance of between $1,500 million and $2,000 million of long-term debt. The company does not expect to need to issue common equity in 2014.

The results of operations for the three months and year ended December 31, 2013, as compared to the 2012 periods, reflect changes in the rate plans and other regulatory matters of Con Edison's utility subsidiaries, the weather impact on steam revenues, decreases in certain operations and maintenance expenses, increases in depreciation and amortization reflecting the impact of higher utility plant balances, and the net mark-to-market effects of the CEBs.

The following table presents the estimated effect on earnings per share and net income for common stock for the 2013 periods compared to the 2012 periods, resulting from these and other major factors:

                            Three Months Ended            Year Ended
                                 Variation                 Variation
                               2013 vs. 2012             2013 vs. 2012
                                       Net Income                Income for
                                       for Common                  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 and other
   regulatory matters    $     (0.19) $       (57) $     (0.07) $       (21)
  Weather impact on
   steam revenues               0.01            3         0.10           30
  Operations and
   maintenance expenses         0.19           55         0.11           32
  Depreciation and
   amortization                (0.02)          (6)       (0.11)         (31)
  Other                         0.01            4        (0.01)          (4)
                         -----------  -----------  -----------  -----------
Total CECONY                       -           (1)        0.02            6
Orange and Rockland
 Utilities, Inc. (O&R)
 (a)                               -            -            -            1
CEBs (b)                        0.07           21        (0.34)         (99)
Other, including parent
 company expenses (c)           0.02            7         0.06           16
                         -----------  -----------  -----------  -----------
Total variation          $      0.09  $        27  $     (0.26) $       (76)
                         ===========  ===========  ===========  ===========

(a) Under the revenue decoupling mechanisms in CECONY's and O&R's New York
    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. Under the rate plans, pension and other postretirement costs
    and certain other costs are reconciled to amounts reflected in rates for
    such costs.
(b) The variation for the year ended December 31, 2013, as compared to the
    2012 period, includes an after-tax charge in 2013 of $95 million or
    $0.32 a share relating to the LILO transactions and a tax benefit in
    2013 of $15 million or $0.05 a share resulting from the acceptance by
    the Internal Revenue Service of the company's claim for manufacturing
    tax deductions. The variations for the three months and year ended
    December 31, 2013, as compared to the 2012 periods, also include
    increases in after-tax net mark-to-market gains of $28 million or $0.09
    a share and $5 million or $0.01 a share, respectively.
(c) Variations for the three months and year ended December 31 reflect
    certain income tax benefits and related interest in the 2013 periods for
    Con Edison (parent company), $7 million or $0.02 a share and $16 million
    or $0.06 a share, respectively.

The Company's 2013 Annual Report on Form 10-K is being filed with the Securities and Exchange Commission. Consolidated income statements for 2013 and 2012 are attached to this press release. Additional information related to utility sales and revenues is available at (select "Shareholder Services" and then select "Sales & Revenue Reports" under "Financial Reports").

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 also is 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 $41 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.

                         CONSOLIDATED EDISON, INC.

                              For the Three Months        For the Years
                               Ended December 31,      Ended December 31,
                                2013        2012        2013        2012
                             ----------  ----------  ----------  ----------
                                 (Millions of Dollars/Except Share Data)
  Electric                   $    1,957  $    2,003  $    8,756  $    8,765
  Gas                               488         458       1,821       1,618
  Steam                             161         181         683         596
  Non-utility                       262         259       1,094       1,209
                             ----------  ----------  ----------  ----------
TOTAL OPERATING REVENUES          2,868       2,901      12,354      12,188
                             ----------  ----------  ----------  ----------
  Purchased power                   677         676       3,099       3,116
  Fuel                               60          97         320         310
  Gas purchased for resale          192         147         635         461
  Other operations and
   maintenance                      737         817       3,137       3,182
  Depreciation and
   amortization                     261         246       1,024         955
  Taxes, other than income
   taxes                            464         465       1,895       1,825
                             ----------  ----------  ----------  ----------
TOTAL OPERATING EXPENSES          2,391       2,448      10,110       9,849
                             ----------  ----------  ----------  ----------
OPERATING INCOME                    477         453       2,244       2,339
                             ----------  ----------  ----------  ----------
  Investment and other
   income                             5           4          24          18
  Allowance for equity funds
   used during construction           2           1           4           4
  Other deductions                   (2)         (3)        (15)        (16)
                             ----------  ----------  ----------  ----------
 (DEDUCTIONS)                         5           2          13           6
                             ----------  ----------  ----------  ----------
  Interest on long-term debt        145         145         578         586
  Other interest                      -           4         143          20
  Allowance for borrowed
   funds used during
   construction                      (1)         (1)         (2)         (2)
                             ----------  ----------  ----------  ----------
NET INTEREST EXPENSE                144         148         719         604
                             ----------  ----------  ----------  ----------
 EXPENSE                            338         307       1,538       1,741
INCOME TAX EXPENSE                  104         100         476         600
                             ----------  ----------  ----------  ----------
NET INCOME                          234         207       1,062       1,141
  Preferred stock dividend
   requirements of
   subsidiary                         -           -           -          (3)
                             ----------  ----------  ----------  ----------
NET INCOME FOR COMMON STOCK  $      234  $      207  $    1,062  $    1,138
                             ==========  ==========  ==========  ==========
Net income for common stock
 per common share - basic    $     0.80  $     0.71  $     3.62  $     3.88
                             ==========  ==========  ==========  ==========
Net income for common stock
 per common share - diluted  $     0.79  $     0.70  $     3.61  $     3.86
                             ==========  ==========  ==========  ==========
 MILLIONS)                        292.9       292.9       292.9       292.9
                             ==========  ==========  ==========  ==========
 MILLIONS)                        294.4       294.5       294.4       294.5
                             ==========  ==========  ==========  ==========

Robert McGee

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