Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2015

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

The following table summarizes stock-based compensation expense recognized by the Companies in the years ended December 31, 2015, 2014 and 2013:



	Con Edison			CECONY
(Millions of Dollars)	2015	2014	2013	2015	2014	2013
Performance-based restricted stock	$27	$22	$20	$23	$19	$18
Time-based restricted stock	1	2	2	1	2	2
Non-employee director deferred stock compensation	2	2	2	2	2	2
Stock purchase plan	4	3	3	3	3	3
Total	$34	$29	$27	$29	$26	$25
Income tax benefit	$14	$12	$11	$12	$10	$10

Summary of Status of Stock Options

A summary of changes in the status of stock options as of December 31, 2015 is as follows:



	Con Edison		CECONY
	Shares	Weighted Average Exercise Price	Shares	Weighted Average Exercise Price
Outstanding at December 31, 2014	229,850	$42.99	191,350	$43.00
Exercised	150,225	42.71	125,575	42.74
Forfeited	500	43.50	—	—
Outstanding at December 31, 2015 (a)	79,125	$43.50	65,775	$43.50

(a) The weighted average remaining contractual life is one year for all outstanding options as of December 31, 2015.

Summary of Stock Options

The following table summarizes information about stock options for the years ended December 31, 2015 and 2014:



	Con Edison		CECONY
(Millions of Dollars)	2015	2014	2015	2014
Aggregate intrinsic value (a)
Options outstanding	$2	$5	$1	$4
Options exercised	3	4	3	3
Cash received by Con Edison for payment of exercise price	6	11	5	8

(a) Aggregate intrinsic value represents the changes in the fair value of all outstanding options from their grant dates to December 31 of the years presented above.

Assumptions Used to Calculate Fair Value

The assumptions used to calculate the fair value of the awards were as follows:



	2015	2014	2013
Risk-free interest rate (a)	0.64% - 3.28%	0.23% - 3.07%	0.13% - 5.17%
Expected term (b)	3 years	3 years	3 years
Expected share price volatility (c)	15.82%	13.14%	13.52%


(a)	The risk-free rate is based on the U.S. Treasury zero-coupon yield curve on the date of grant.


(b)	The expected term of the Performance RSUs equals the vesting period. The Companies do not expect significant forfeitures to occur.


(c)	The expected volatility is calculated using daily closing stock prices over a period of three years, which approximates the expected term of the awards.

Summary of Changes in Status of Time-Based Awards

A summary of changes in the status of time-based awards during the year ended December 31, 2015 is as follows:



	Con Edison		CECONY
	Units	Weighted Average Grant Date Fair Value	Units	Weighted Average Grant Date Fair Value
Non-vested at December 31, 2014	65,423	$57.65	62,173	$57.64
Granted	23,000	61.00	21,800	61.00
Vested	(20,773)	58.42	(19,773)	58.42
Forfeited	(2,670)	58.35	(2,570)	58.39
Non-vested at December 31, 2015	64,980	$58.56	61,630	$58.55

TSR and Non TSR Portios

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Summary of Changes in Status of Performance RSUs'

A summary of changes in the status of the Performance RSUs’ TSR and non-TSR portions during the year ended December 31, 2015 is as follows:



	Con Edison			CECONY
		Weighted Average Grant Date Fair Value (a)			Weighted Average Grant Date Fair Value (a)
	Units	TSR Portion (b)	Non-TSR Portion (c)	Units	TSR Portion (b)	Non-TSR Portion (c)
Non-vested at December 31, 2014	1,100,607	$42.33	$56.61	880,523	$42.58	$56.70
Granted	363,900	57.67	63.22	288,669	57.22	63.12
Vested	(327,536)	49.45	58.84	(266,683)	49.34	58.83
Forfeited	(58,632)	43.84	58.25	(49,252)	43.54	58.14
Non-vested at December 31, 2015	1,078,339	$45.26	$58.08	853,257	$45.37	$58.12


(a)	The TSR and non-TSR Portions each account for 50 percent of the awards’ value.


(b)	Fair value is determined using the Monte Carlo simulation described above. Weighted average grant date fair value does not reflect any accrual or payment of dividends prior to vesting.


(c)	Fair value is determined using the market price of one share of Con Edison common stock on the grant date. The market price has not been discounted to reflect that dividends do not accrue and are not payable on Performance RSUs until vesting.