Capitalization

9 Months Ended

Sep. 30, 2021

In February 2021, a subsidiary of the Clean Energy Businesses borrowed $250 million at a variable-rate, due 2028, secured by equity interests in four of the company’s solar electric production projects, the interest rate for which was swapped to a fixed rate of 3.39 percent.

In February 2021, a subsidiary of the Clean Energy Businesses entered into an agreement with a tax equity investor for the financing of a portfolio of three of the Clean Energy Businesses’ solar electric production projects (CED Nevada Virginia). Under the financing, the tax equity investor acquired a noncontrolling interest in the portfolio and will receive a percentage of earnings, tax attributes and cash flows. As of September 30, 2021, the tax equity investor fully funded its $263 million financing obligation. The Clean Energy Businesses will continue to consolidate this entity and will report the noncontrolling tax equity investor’s interest in the tax equity arrangement. See Note P.

In March 2021, a subsidiary of the Clean Energy Businesses agreed to issue $229 million aggregate principal amount of 3.77 percent senior notes, due 2046, secured by equity interests in CED Nevada Virginia, all of which had been issued at September 30, 2021.

During the first quarter of 2021, Con Edison optionally prepaid the remaining $675 million outstanding under a February 2019 term loan prior to its maturity in June 2021.

In May 2021, Con Edison redeemed at maturity $500 million of 2.00 percent 5-year debentures.

In June 2021, CECONY redeemed at maturity $640 million of floating rate 3-year debentures.

In June 2021, CECONY issued $750 million aggregate principal amount of 2.40 percent debentures, due 2031 and $750 million aggregate principal amount of 3.60 percent debentures, due 2061.

In June 2021, Con Edison issued 10,100,000 shares of its common stock resulting in net proceeds of approximately $775 million, after issuance expenses.

In June 2021, as part of the Clean Energy Businesses’ sale of a renewable electric production project, $104 million of 4.52 percent senior notes, due 2032 and $37 million of floating rate loans, due 2024 and loan-related interest rate swaps were assumed by the buyer pursuant to the sale agreement. See Notes N and R.

In September 2021, O&R agreed to issue in December 2021 $45 million aggregate principal amount of 2.31 percent debentures, due 2031 and $30 million aggregate principal amount of 3.17 percent debentures, due 2051.

The carrying amounts and fair values of long-term debt at September 30, 2021 and December 31, 2020 were:


(Millions of Dollars)	2021		2020
Long-Term Debt (including current portion) (a)	Carrying Amount	Fair Value	Carrying Amount	Fair Value
Con Edison	$22,280	$25,655	$22,349	$26,808
CECONY	$17,637	$20,774	$16,789	$20,974

(a)Amounts shown are net of unamortized debt expense and unamortized debt discount of $221 million and $188 million for Con Edison and CECONY, respectively, as of September 30, 2021 and $215 million and $176 million for Con Edison and CECONY, respectively, as of December 31, 2020.

The fair values of the Companies' long-term debt have been estimated primarily using available market information and at September 30, 2021 are classified as Level 2 liabilities (see Note O).