Consolidated Edison, Inc. (ED): history, ownership, mission, how it works & makes money

A Brief History of Consolidated Edison, Inc.

Company Overview

Consolidated Edison, Inc. (Con Edison) is a prominent energy company based in New York City, primarily engaged in the regulated electric, gas, and steam utility services. The company operates through several subsidiaries, including Consolidated Edison Company of New York, Inc. (CECONY) and Orange and Rockland Utilities, Inc. (O&R).

Financial Performance

As of June 30, 2024, Con Edison reported the following financial metrics:

Recent Developments

In March 2023, Con Edison completed the divestiture of its Clean Energy Businesses, resulting in a preliminary gain of approximately $867 million, which contributed significantly to its financial performance in 2023. By June 30, 2024, the cumulative gain on this sale was adjusted to $835 million, reflecting customary closing adjustments.

Operational Highlights

For the six months ended June 30, 2024, Con Edison experienced operational revenues from its core utility segments as follows:

Debt and Equity Structure

As of June 30, 2024, Con Edison reported long-term debt of $23,311 million and total liabilities amounting to $67,920 million. The company’s common equity ratio stood at 48.0%, indicating a stable capital structure.

Regulatory Environment

Con Edison is subject to regulatory oversight by the New York State Public Service Commission (NYSPSC), which influences its rate structures and operational practices. The implementation of the Inflation Reduction Act in 2022 introduced a new 15% Corporate Alternative Minimum Tax (CAMT), which Con Edison will be subject to starting in 2024.

Market Position

Con Edison remains a critical player in the New York energy market, focusing on transitioning towards sustainable practices while maintaining reliable service to its customers. The company continues to adapt to changing regulatory frameworks and market dynamics.

A Who Owns Consolidated Edison, Inc. (ED)

Ownership Structure

As of 2024, Consolidated Edison, Inc. (ED) has a diverse ownership structure comprising institutional investors, retail investors, and company insiders.

Major Shareholders

The following table summarizes the major shareholders of Consolidated Edison, Inc. as of the end of June 2024:

Top Institutional Investors

Key institutional investors holding significant stakes in Consolidated Edison, Inc. include:

Insider Ownership

Insider ownership consists of executives and board members, with the following details:

Market Capitalization

The market capitalization of Consolidated Edison, Inc. as of June 30, 2024, is approximately $35.1 billion.

Stock Performance

The stock performance has shown the following trends:

Dividend Payout

Consolidated Edison has maintained a strong dividend policy with the following details:

Consolidated Edison, Inc. (ED) Mission Statement

Overview

The mission statement of Consolidated Edison, Inc. (ED) emphasizes its commitment to providing safe, reliable, and affordable energy services while being a leader in the transition to a cleaner energy future. The company aims to enhance the quality of life in the communities it serves through its operations, which include electric, gas, and steam services.

Core Values

• Safety: Prioritizing the safety of employees, customers, and the community.
• Integrity: Conducting business with honesty and transparency.
• Customer Service: Delivering exceptional service and support to customers.
• Environmental Stewardship: Committing to sustainable practices and reducing carbon footprint.
• Innovation: Investing in new technologies and solutions for energy efficiency and reliability.

Financial Performance

As of June 30, 2024, Consolidated Edison reported operating revenues of $7,495 million for the first six months, with net income for common stock amounting to $922 million. This reflects a strong performance compared to the same period in 2023, where net income was $1,658 million.

Customer Commitment

Consolidated Edison is dedicated to maintaining high customer satisfaction through various initiatives, including enhancing service reliability and reducing response times for outages. The company has invested heavily in infrastructure upgrades to support this goal, with capital expenditures reaching $2,453 million in the first six months of 2024.

Sustainability Initiatives

The mission statement reflects a strong emphasis on sustainability, with the company committing to reduce greenhouse gas emissions and promote renewable energy sources. In alignment with New York State’s Climate Leadership and Community Protection Act, Consolidated Edison is focused on transitioning to cleaner energy alternatives, which includes significant investments in renewable projects and energy efficiency programs.

Community Engagement

Consolidated Edison actively engages with the communities it serves, aiming to foster strong relationships and support local initiatives. The company allocates resources for community development projects and collaborates with local organizations to enhance community welfare.

Conclusion

The mission statement of Consolidated Edison, Inc. encapsulates the company’s dedication to providing reliable energy services while prioritizing safety, customer satisfaction, and environmental stewardship. The financial performance and ongoing initiatives underscore its commitment to these principles as it navigates the evolving energy landscape.

How Consolidated Edison, Inc. (ED) Works

Company Overview

Consolidated Edison, Inc. (Con Edison) is a public utility holding company, primarily engaged in the regulated electric, gas, and steam distribution service in the New York metropolitan area. The company operates through its subsidiaries, including Consolidated Edison Company of New York, Inc. (CECONY) and Orange and Rockland Utilities, Inc. (O&R).

Financial Performance

As of June 30, 2024, Consolidated Edison reported the following financial results:

Revenue Breakdown

The revenue breakdown for the three months ended June 30, 2024, is as follows:

Operating Expenses

Operating expenses for the three months ended June 30, 2024, include:

Cash Flow Statement

Net cash flows from financing activities for the six months ended June 30, 2024, are summarized as follows:

Balance Sheet Overview

As of June 30, 2024, key balance sheet figures are:

Service Areas and Customer Base

Con Edison serves approximately:

• 3.5 million electric customers
• 1.1 million gas customers
• 1.5 million steam customers

Regulatory Environment

Con Edison operates under strict regulatory oversight from the New York Public Service Commission (NYSPSC), which governs rates and service standards.

Recent Developments

In 2024, Con Edison reached a collective bargaining agreement with its largest union, impacting approximately 7,300 employees.

How Consolidated Edison, Inc. (ED) Makes Money

Revenue Streams

Consolidated Edison, Inc. (ED) generates revenue primarily through its regulated utility operations, which include electric, gas, and steam services. For the six months ended June 30, 2024, the operating revenues were as follows:

Electric Operations

Electric operations are the largest revenue source for Consolidated Edison. In the second quarter of 2024, the company reported:

The increase in electric revenues is attributed to an increase in the electric rate plan, which contributed approximately $132 million to the revenue growth.

Gas Operations

Gas operations have shown a slight increase in revenues. For the same period, the performance was:

The increase in gas revenues is primarily due to the gas rate plan adjustments.

Steam Operations

The steam segment has also seen fluctuations in revenue:

The steam segment's revenue improvement is reflective of ongoing adjustments in pricing and operational efficiencies.

Other Income Sources

In addition to utility operations, Consolidated Edison also earns income from investments and other sources:

Overall, other income decreased due to lower credits associated with pension and other post-retirement benefits.

Operating Expenses

Operating expenses are a critical component of profitability. In the six months ended June 30, 2024, the breakdown was as follows:

The operating income for the first half of 2024 was reported at $1,304 million, an increase from $1,071 million in the previous year.

Net Income

Consolidated Edison reported net income figures as follows:

Net income for the first half of 2024 was $922 million, reflecting a strong performance despite the challenges faced.

Conclusion on Financial Performance

Consolidated Edison’s revenue generation strategy is heavily reliant on its utility services, which are supported by regulatory frameworks that allow for rate adjustments. The mix of electric, gas, and steam operations, coupled with disciplined expense management, positions the company favorably for continued revenue growth.