Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2024

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Fair Value on Recurring Basis

Assets and liabilities measured at fair value on a recurring basis as of September 30, 2024 and December 31, 2023 are summarized below.

	2024					2023
(Millions of Dollars)	Level 1	Level 2	Level 3	Netting Adjustment (d)	Total	Level 1	Level 2	Level 3	Netting Adjustment (d)	Total
Con Edison
Derivative assets:
Commodity (a)(b)(c)	$3	$92	$1	$(60)	$36	$6	$146	$2	$(54)	$100
Mutual Funds (a)(b)	574	—	—	—	574	505	—	—	—	505
Cash Value of Life Insurance Policies (a)(b)	—	133	—	—	133	—	118	—	—	118
Total assets	$577	$225	$1	$(60)	$743	$511	$264	$2	$(54)	$723
Derivative liabilities:
Commodity (a)(b)(c)	$8	$260	$26	$(65)	229	$22	$347	$10	$(65)	$314
CECONY
Derivative assets:
Commodity (a)(b)(c)	$3	$89	$1	$(60)	$33	$6	$143	$1	$(52)	$98
Mutual Funds (a)(b)	557	—	—	—	557	488	—	—	—	488
Cash Value of Life Insurance Policies (a)(b)	—	127	—	—	127	—	113	—	—	113
Total assets	$560	$216	$1	$(60)	$717	$494	$256	$1	$(52)	$699
Derivative liabilities:
Commodity (a)(b)(c)	$6	$244	$18	$(67)	201	$20	$326	$6	$(65)	$287

(a)The Companies’ policy is to review the fair value hierarchy and recognize transfers into and transfers out of the levels at the end of each reporting period. Con Edison and CECONY had $5 million of commodity derivative assets and an immaterial amount of liabilities transferred from level 3 to level 2 during the nine months ended September 30, 2024 because of availability of observable market data due to the decrease in the terms of certain contracts from beyond three years as of December 31, 2023 to less than three years as of September 30, 2024. Con Edison and CECONY had an immaterial amount of derivative assets and $9 million and $6 million of commodity derivative liabilities, respectively, transferred from level 3 to level 2 during the year ended December 31, 2023 because of availability of observable market data due to the decrease in the terms of certain contracts from beyond three years as of September 30, 2023 to less than three years as of December 31, 2023.

(b)Level 2 assets and liabilities include investments held in the deferred compensation plan and/or non-qualified retirement plans, exchange-traded contracts where there is insufficient market liquidity to warrant inclusion in Level 1, and certain over-the-counter derivative instruments for electricity, refined products and natural gas. Derivative instruments classified as Level 2 are valued using industry standard models that incorporate corroborated observable inputs, such as pricing services or prices from similar instruments that trade in liquid markets, time value and volatility factors.

(c)The accounting rules for fair value measurements and disclosures require consideration of the impact of nonperformance risk (including credit risk) from a market participant perspective in the measurement of the fair value of assets and liabilities. At September 30, 2024 and

December 31, 2023, the Companies determined that nonperformance risk would have no material impact on their financial position or results of operations.

(d)Amounts represent the impact of legally-enforceable master netting agreements that allow the Companies to net gain and loss positions and cash collateral held or placed with the same counterparties.

Schedule of Commodity Derivatives

	Fair Value of Level 3 at September 30, 2024	Valuation Techniques	Unobservable Inputs	Range	Average Market Price
	(Millions of Dollars)
Con Edison – Commodity
Electricity	$(12)	Discounted Cash Flow	Forward energy prices ($/MWh) (a)	$33.80-$109.05	$58.66
Electricity	(14)	Discounted Cash Flow	Forward capacity prices ($/kW-month) (a)	$0.96-$7.53	$3.92
Transmission Congestion Contracts	1	Discounted Cash Flow	Inter-zonal forward price curves adjusted for historical zonal losses ($/MWh)  (b)	$0.18-$3.35	$1.10
Total Con Edison—Commodity	$(25)
CECONY – Commodity
Electricity	$(12)	Discounted Cash Flow	Forward energy prices ($/MWh)  (a)	$35.70-$109.05	$59.06
Electricity	(6)	Discounted Cash Flow	Forward capacity prices ($/kW-month) (a)	$0.96-$7.53	$3.96
Transmission Congestion Contracts	1	Discounted Cash Flow	Inter-zonal forward price curves adjusted for historical zonal losses ($/MWh) (b)	$0.18-$3.35	$1.10
Total CECONY—Commodity	$(17)

(a)Generally, increases (decreases) in this input in isolation would result in a higher (lower) fair value measurement.

(b)Generally, increases (decreases) in this input in isolation would result in a lower (higher) fair value measurement.

Reconciliation of Beginning and Ending Net Balances for Assets and Liabilities Measured at Level 3 Fair Value

The table listed below provides a reconciliation of the beginning and ending net balances for assets and liabilities measured at fair value as of September 30, 2024 and 2023 and classified as Level 3 in the fair value hierarchy:

	For the Three Months Ended September 30,
	Con Edison		CECONY
(Millions of Dollars)	2024	2023	2024	2023
Beginning balance as of July 1,	$(11)	$(7)	$(6)	$(4)
Included in earnings	(1)	2	—	1
Included in regulatory assets and liabilities	(15)	(3)	(12)	(3)
Settlements	2	(2)	1	(1)
Ending balance as of September 30,	$(25)	$(10)	$(17)	$(7)

	For the Nine Months Ended September 30,
	Con Edison		CECONY
(Millions of Dollars)	2024	2023	2024	2023
Beginning balance as of January 1,	$(8)	$15	$(5)	$(6)
Included in earnings	(6)	(2)	(2)	(1)
Included in regulatory assets and liabilities	(13)	16	(8)	10
Settlements	7	—	3	—
Decrease due to the sale of the Clean Energy Businesses (a)	—	(29)	—	—
Transfer out of level 3	(5)	(10)	(5)	(10)
Ending balance as of September 30,	$(25)	$(10)	$(17)	$(7)

(a) On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note R and Note S.