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Con Edison Reports 2016 Earnings

NEW YORK, NY--(Marketwired - February 16, 2017) - Consolidated Edison, Inc. (Con Edison) (NYSE: ED) today reported 2016 net income of $1,245 million or $4.15 a share compared with $1,193 million or $4.07 a share in 2015. Adjusted earnings, which exclude the effects of a gain on the sale of Con Edison Clean Energy Businesses, Inc.'s (CEBs') retail electric supply business, the goodwill impairment related to the CEBs' energy service business, the impairment of assets held for sale in 2015 and the net mark-to-market effects of the CEBs, were $1,198 million or $3.99 a share in 2016 compared with $1,196 million or $4.08 a share in 2015.

For the fourth quarter of 2016, net income was $207 million or $0.68 a share compared with $176 million or $0.60 a share in the fourth quarter of 2015. Adjusted earnings, which exclude the effects of a gain on the sale of the CEBs' retail electric supply business, the goodwill impairment related to the CEBs' energy service business, and the net mark-to-market effects of the CEBs, were $211 million or $0.69 a share in 2016 compared with $178 million or $0.61 a share in 2015.

"We finished 2016 strong, and are poised for continued success in 2017," said John McAvoy, Con Edison's chairman and CEO. "Our recently approved three-year rate plans for Consolidated Edison Company of New York, Inc.'s electric and gas delivery businesses include implementation of our five-year smart meter installation program for electric and gas customers, and significantly accelerates natural gas main replacement. The plans provide for an energy future that increases customer options for energy savings, incorporates solar and renewable energy, and further expands our vigorous energy efficiency programs."

The following table is a reconciliation of Con Edison's reported earnings per share to adjusted earnings per share and reported net income to adjusted earnings for the three months and the years ended December 31, 2016 and 2015.

                                                                            
                      For the Three Months Ended     For the Years Ended    
                                     Net Income                  Net Income 
                        Earnings    (Millions of    Earnings    (Millions of
                       per Share      Dollars)     per Share      Dollars)  
                     -------------------------------------------------------
                      2016   2015   2016   2015   2016   2015   2016   2015 
----------------------------------------------------------------------------
Reported earnings                                                           
 per share (basic)                                                          
 and net income                                                             
 (GAAP basis)         $0.68  $0.60   $207   $176  $4.15  $4.07 $1,245 $1,193
Gain on sale of the                                                         
 CEBs' retail                                                               
 electric supply                                                            
 business (a)        (0.03)      -    (9)      - (0.19)      -   (56)      -
Goodwill impairment                                                         
 related to the                                                             
 CEBs' energy                                                               
 service business                                                           
 (b)                   0.04      -     12      -   0.04      -     12      -
Impairment of assets                                                        
 held for sale (c)        -      -      -      -      -   0.01      -      3
Net mark-to-market                                                          
 effects of the CEBs                                                        
 (d)                      -   0.01      1      2 (0.01)      -    (3)      -
----------------------------------------------------------------------------
Adjusted earnings                                                           
 per share and                                                              
 adjusted earnings                                                          
 (non-GAAP basis)     $0.69  $0.61   $211   $178  $3.99  $4.08 $1,198 $1,196
----------------------------------------------------------------------------
(a) After taxes of $(48) million for the year ended December 31, 2016, which
    includes an adjustment for the apportionment of state income taxes.     
(b) After taxes of $3 million for the three months and the year ended       
    December 31, 2016.                                                      
(c) After taxes of $2 million for the year ended December 31, 2015.         
(d) After taxes of $1 million for the three months ended December 31, 2015  
    and $(2) million for the year ended December 31, 2016.                  
                                                                            

The company expects its adjusted earnings for the year 2017 to be in the range of $3.95 to $4.15 per share. Adjusted earnings per share exclude the CEBs' net mark-to-market effects. The forecast reflects capital investments of $3,694 million and operations and maintenance expenses of $3,108 million.

Con Edison plans to meet its 2017 capital requirements through internally-generated funds and the issuance of securities. The company's plans include the issuance of between $1,000 million and $1,800 million of long-term debt, most of which would be at the utilities, and the issuance of additional debt secured by its renewable electric production projects. The company's plans also include the issuance of up to $350 million of common equity in addition to equity under its dividend reinvestment, employee stock purchase and long term incentive plans.

The results of operations for the three months and the year ended December 31, 2016, as compared with the 2015 periods, reflect changes in rate plans and regulatory charges and the impact of weather on steam revenues. The results of operations also reflect income from renewable investments at the CEBs and, for the year ended period, higher electric retail gross profit. Operations and maintenance expenses for Consolidated Edison Company of New York, Inc. (CECONY) for the three months and the year ended December 31, 2016 reflect lower costs for uncollectible expenses; and for the utilities for the year ended December 31, 2016 reflect lower surcharges for assessments and fees that are collected in revenues from customers. In addition, the utilities' rate plans provide for revenues to cover expected changes in certain operating costs including depreciation, property taxes and other tax matters.

The following table presents the estimated effect on earnings per share and net income for the 2016 periods compared to the 2015 periods, resulting from these and other major factors:

                                                                            
                                      Three Months Ended      Year Ended    
                                          Variation           Variation     
                                        2016 vs. 2015       2016 vs. 2015   
                                                  Net                 Net   
                                                 Income              Income 
                                               (Millions           (Millions
                                      Earnings     of     Earnings     of   
                                     per Share  Dollars) per Share  Dollars)
----------------------------------------------------------------------------
CECONY (a)                                                                  
  Changes in rate plans and                                                 
   regulatory charges                    $0.19       $57     $0.34       $96
  Weather impact on steam revenues        0.05        15    (0.07)      (21)
  Operations and maintenance                                                
   expenses                               0.08        23      0.15        45
  Depreciation, property taxes and                                          
   other tax matters                    (0.13)      (38)    (0.43)     (126)
  Other (b)                             (0.05)       (9)    (0.17)      (22)
----------------------------------------------------------------------------
    Total CECONY                          0.14        48    (0.18)      (28)
----------------------------------------------------------------------------
Orange and Rockland Utilities, Inc.                                         
 (O&R) (a)                                                                  
  Changes in rate plans and                                                 
   regulatory charges                   (0.04)      (10)         -         1
  Operations and maintenance                                                
   expenses                               0.01         2      0.06        19
  Depreciation and property taxes       (0.01)       (2)    (0.03)      (10)
  Other (b)                             (0.01)       (3)    (0.01)       (3)
----------------------------------------------------------------------------
    Total O&R                           (0.05)      (13)      0.02         7
----------------------------------------------------------------------------
CEBs                                                                        
  Operating revenues less energy                                            
   costs                                  0.01         2      0.14        43
  Operations and maintenance                                                
   expenses                             (0.01)       (2)    (0.06)      (18)
  Gain on sale of the CEBs' retail                                          
   electric supply business               0.03         9      0.19        56
  Net interest expense                  (0.01)       (3)    (0.05)      (14)
  Other (b)                             (0.03)      (10)    (0.03)       (8)
----------------------------------------------------------------------------
    Total CEBs                          (0.01)       (4)      0.19        59
----------------------------------------------------------------------------
Con Edison Transmission, Inc. (c)         0.03         9      0.07        20
----------------------------------------------------------------------------
Other, including parent company                                             
 expenses (d)                           (0.03)       (9)    (0.02)       (6)
----------------------------------------------------------------------------
    Total Reported (GAAP basis)          $0.08       $31     $0.08       $52
  Gain on sale of the CEBs' retail                                          
   electric supply business             (0.03)       (9)    (0.19)      (56)
  Goodwill impairment related to the                                        
   CEBs' energy service business          0.04        12      0.04        12
  Impairment of assets held for sale         -         -    (0.01)       (3)
  Net mark-to-market effects of the                                         
   CEBs                                 (0.01)       (1)    (0.01)       (3)
----------------------------------------------------------------------------
    Total Adjusted (non-GAAP basis)      $0.08       $33   $(0.09)        $2
----------------------------------------------------------------------------
(a) Under the revenue decoupling mechanisms in the utilities' 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.                                                               
(b) Includes the impact of the dilutive effect of Con Edison's stock        
    issuances.                                                              
(c) Income from equity investments.                                         
(d) Lower income tax benefits.                                              
                                                                            

The Company's 2016 Annual Report on Form 10-K is being filed with the Securities and Exchange Commission. Consolidated income statements for 2016 and 2015 are attached to this press release. A fourth quarter 2016 earnings release presentation will be available at www.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" and similar expressions identify forward-looking statements. The forward-looking statements reflect information available and assumptions at the time the statements are made, and speak only as of that time. Actual results or developments may differ materially from those included in the forward-looking statements because of various factors such as those identified in reports the company has filed with the Securities and Exchange Commission, including that the company's subsidiaries are extensively regulated and are subject to 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 intentional misconduct of employees or contractors could adversely affect it; the failure of, or damage to, its subsidiaries' facilities could adversely affect it; a cyber-attack could adversely affect it; it is exposed to risks from the environmental consequences of its subsidiaries' operations; a disruption in the wholesale energy markets or failure by an energy supplier could adversely affect it; it has substantial unfunded pension and other postretirement benefit liabilities; its ability to pay dividends or interest depends on dividends from its subsidiaries; it requires access to capital markets to satisfy funding requirements; changes to tax laws could adversely affect it; its strategies may not be effective to address changes in the external business environment; and it also faces other risks that are beyond its control.

This press release also contains a financial measure, adjusted earnings, that is not determined in accordance with generally accepted accounting principles in the United States of America (GAAP). This non-GAAP financial measure should not be considered as an alternative to net income, which is an indicator of financial performance determined in accordance with GAAP. Adjusted earnings excludes from net income the net mark-to-market changes in the fair value of the derivative instruments subsidiaries of Con Edison Clean Energy Businesses, Inc. use to economically hedge market price fluctuations in related underlying physical transactions for the purchase or sale of electricity and gas. Adjusted earnings may also exclude from net income certain other items that the company does not consider indicative of its ongoing financial performance. Management uses this non-GAAP financial measure to facilitate the analysis of the company's financial performance as compared to its internal budgets and previous financial results. Management also uses this non-GAAP financial measure to communicate to investors and others the company's expectations regarding its future earnings and dividends on its common stock. Management believes that this non-GAAP financial measure also is useful and meaningful to investors to facilitate their analysis of the company's financial performance.

Consolidated Edison, Inc. is one of the nation's largest investor-owned energy-delivery companies, with approximately $12 billion in annual revenues and $48 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 1,300-square-mile-area in southeastern New York State and northern New Jersey; Con Edison Clean Energy Businesses, Inc., which through its subsidiaries develops, owns and operates renewable and energy infrastructure projects and provides energy-related products and services to wholesale and retail customers; and Con Edison Transmission, Inc., which through its subsidiaries invests in electric and natural gas transmission projects.

                                                                            
                          CONSOLIDATED EDISON, INC.                         
                        CONSOLIDATED INCOME STATEMENT                       
                                                                            
                                        For the Three                       
                                         Months Ended    For the Years Ended
                                         December 31,        December 31,   
                                        2016      2015      2016      2015  
----------------------------------------------------------------------------
                                                   (Unaudited)              
                                     (Millions of Dollars/Except Share Data)
----------------------------------------------------------------------------
OPERATING REVENUES                                                          
  Electric                              $2,024    $1,895    $8,741    $8,832
  Gas                                      446       416     1,692     1,709
  Steam                                    145       100       551       629
  Non-utility                               92       296     1,091     1,384
----------------------------------------------------------------------------
TOTAL OPERATING REVENUES                 2,707     2,707    12,075    12,554
----------------------------------------------------------------------------
OPERATING EXPENSES                                                          
  Purchased power                          392       570     2,439     2,973
  Fuel                                      39        32       172       248
  Gas purchased for resale                 158        79       477       495
  Other operations and maintenance         821       859     3,269     3,344
  Depreciation and amortization            311       290     1,216     1,130
  Taxes, other than income taxes           508       478     2,031     1,937
----------------------------------------------------------------------------
TOTAL OPERATING EXPENSES                 2,229     2,308     9,604    10,127
----------------------------------------------------------------------------
  Gain on sale of retail electric                                           
   supply business                           -         -       104         -
----------------------------------------------------------------------------
OPERATING INCOME                           478       399     2,575     2,427
----------------------------------------------------------------------------
OTHER INCOME (DEDUCTIONS)                                                   
  Investment and other income                7         4        91        35
  Allowance for equity funds used                                           
   during construction                       2         1        10         5
  Other deductions                         (6)       (4)      (37)      (16)
----------------------------------------------------------------------------
TOTAL OTHER INCOME                           3         1        64        24
----------------------------------------------------------------------------
INCOME BEFORE INTEREST AND INCOME                                           
 TAX EXPENSE                               481       400     2,639     2,451
----------------------------------------------------------------------------
INTEREST EXPENSE                                                            
  Interest on long-term debt               173       163       678       632
  Other interest                             7         5        24        24
  Allowance for borrowed funds used                                         
   during construction                     (2)       (1)       (6)       (3)
----------------------------------------------------------------------------
NET INTEREST EXPENSE                       178       167       696       653
----------------------------------------------------------------------------
INCOME BEFORE INCOME TAX EXPENSE           303       233     1,943     1,798
INCOME TAX EXPENSE                          96        57       698       605
----------------------------------------------------------------------------
NET INCOME                                $207      $176    $1,245    $1,193
----------------------------------------------------------------------------
  Net income per common share -                                             
   basic                                 $0.68     $0.60     $4.15     $4.07
----------------------------------------------------------------------------
  Net income per common share -                                             
   diluted                               $0.67     $0.60     $4.12     $4.05
----------------------------------------------------------------------------
AVERAGE NUMBER OF SHARES OUTSTANDING                                        
 - BASIC (IN MILLIONS)                   304.8     293.2     300.4     293.0
----------------------------------------------------------------------------
AVERAGE NUMBER OF SHARES OUTSTANDING                                        
 - DILUTED (IN MILLIONS)                 306.2     294.6     301.9     294.4
----------------------------------------------------------------------------

Media Relations
212 460 4111 (24 hours)

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

Contact:
Robert McGee
212-460-4111

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