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Other Postretirement Benefits (Tables)

12 Months Ended

Dec. 31, 2024

The components of the Companies’ total periodic benefit cost/(credit) for 2024, 2023 and 2022 were as follows:


	Con Edison			CECONY
(Millions of Dollars)	2024	2023	2022	2024	2023	2022
Service cost – including administrative expenses	$177	$161	$287	$167	$151	$270
Interest cost on projected benefit obligation	642	649	505	604	611	475
Expected return on plan assets	(1,129)	(1,114)	(1,168)	(1,076)	(1,061)	(1,109)
Recognition of net actuarial loss/(gain)	(5)	(232)	377	(7)	(219)	358
Recognition of prior service credit	(17)	(17)	(16)	(19)	(19)	(21)
TOTAL PERIODIC BENEFIT COST/(CREDIT)	$(332)	$(553)	$(15)	$(331)	$(537)	$(27)
Cost capitalized	(94)	(81)	(137)	(90)	(78)	(129)
Reconciliation to rate level	55	282	259	43	261	245
Total expense/(benefit) recognized	$(371)	$(352)	$107	$(378)	$(354)	$89

The components of the Companies’ total periodic postretirement benefit costs/(credit) for 2024, 2023 and 2022 were as follows:


	Con Edison			CECONY
(Millions of Dollars)	2024	2023	2022	2024	2023	2022
Service cost	$13	$14	$18	$10	$12	$15
Interest cost on accumulated other postretirement benefit obligation	47	57	35	40	49	30
Expected return on plan assets	(68)	(70)	(72)	(55)	(56)	(58)
Recognition of net actuarial loss/(gain)	(20)	(16)	(14)	(13)	(8)	(9)
Recognition of prior service credit	(1)	(2)	(1)	—	—	—
TOTAL PERIODIC POSTRETIREMENT BENEFIT COST/(CREDIT)	$(29)	$(17)	$(34)	$(18)	$(3)	$(22)
Cost capitalized	(6)	(6)	(8)	(5)	(5)	(7)
Reconciliation to rate level	16	4	29	13	(2)	24
Total credit recognized	$(19)	$(19)	$(13)	$(10)	$(10)	$(5)

Schedule of Funded Status

The funded status at December 31, 2024, 2023 and 2022 was as follows:


	Con Edison			CECONY
(Millions of Dollars)	2024	2023	2022	2024	2023	2022
CHANGE IN PROJECTED BENEFIT OBLIGATION
Projected benefit obligation at beginning of year	$12,712	$12,113	$17,357	$11,977	$11,395	$16,341
Service cost – excluding administrative expenses	172	156	283	162	146	266
Interest cost on projected benefit obligation	642	649	505	604	611	475
Net actuarial loss/(gain)	(557)	599	(5,102)	(557)	572	(4,845)
Plan amendments	—	3	—	—	—	—
Benefits paid	(828)	(808)	(930)	(751)	(747)	(842)
PROJECTED BENEFIT OBLIGATION AT END OF YEAR	$12,141	$12,712	$12,113	$11,435	$11,977	$11,395
CHANGE IN PLAN ASSETS
Fair value of plan assets at beginning of year	$15,404	$14,979	$18,504	$14,674	$14,248	$17,566
Actual return on plan assets	724	1,261	(2,583)	691	1,201	(2,453)
Employer contributions	20	21	30	17	18	17
Benefits paid	(828)	(808)	(930)	(751)	(747)	(842)
Administrative expenses	(42)	(49)	(42)	(40)	(46)	(40)
FAIR VALUE OF PLAN ASSETS AT END OF YEAR	$15,278	$15,404	$14,979	$14,591	$14,674	$14,248
FUNDED STATUS	$3,137	$2,692	$2,866	$3,156	$2,697	$2,853
Unrecognized net loss/(gain)	$(857)	($757)	($1,485)	$(825)	($705)	($1,397)
Unrecognized prior service credits	(88)	(105)	(124)	(104)	(124)	(143)
Accumulated benefit obligation	$11,236	$11,739	$11,167	$10,554	$11,031	$10,478

The funded status of the programs at December 31, 2024, 2023 and 2022 were as follows:


	Con Edison			CECONY
(Millions of Dollars)	2024	2023	2022	2024	2023	2022
CHANGE IN BENEFIT OBLIGATION
Benefit obligation at beginning of year	$963	$1,058	$1,398	$825	$921	$1,189
Service cost	13	14	18	10	12	15
Interest cost on accumulated postretirement benefit obligation	47	57	35	40	49	30
Net actuarial gain	(57)	(93)	(311)	(38)	(94)	(239)
Benefits paid and administrative expenses, net of subsidies	(120)	(128)	(130)	(112)	(118)	(121)
Participant contributions	52	55	48	50	55	47
BENEFIT OBLIGATION AT END OF YEAR	$898	$963	$1,058	$775	$825	$921
CHANGE IN PLAN ASSETS
Fair value of plan assets at beginning of year	$929	$860	$1,150	$750	$708	$955
Actual return on plan assets	56	116	(225)	44	84	(187)
Employer contributions	13	22	13	10	17	10
Employer group waiver plan subsidies	66	56	55	60	52	50
Participant contributions	52	55	48	50	55	47
Benefits paid	(182)	(180)	(181)	(170)	(166)	(167)
FAIR VALUE OF PLAN ASSETS AT END OF YEAR	$934	$929	$860	$744	$750	$708
FUNDED STATUS	$36	$(34)	$(198)	$(31)	$(75)	$(213)
Unrecognized net loss/(gain)	($119)	$(90)	$37	($57)	$(41)	$78
Unrecognized prior service costs	(9)	(10)	(12)	—	—	—

Schedule of Actuarial Assumptions

The actuarial assumptions were as follows:


	2024		2023		2022
Weighted-average assumptions used to determine benefit obligations at December 31:
Discount rate	5.70	%	5.15	%	5.45	%
Interest crediting rate for cash balance plan	4.30	%	4.20	%	4.00	%
Rate of compensation increase
CECONY	3.80	%	3.80	%	3.80	%
O&R	3.20	%	3.20	%	3.20	%
Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31:
Discount rate	5.15	%	5.45	%	3.00	%
Interest crediting rate for cash balance plan	4.20	%	4.00	%	3.50	%
Expected return on plan assets	6.75	%	6.75	%	7.00	%
Rate of compensation increase
CECONY	3.80	%	3.80	%	3.80	%
O&R	3.20	%	3.20	%	3.20	%

The actuarial assumptions were as follows:


	2024		2023		2022
Weighted-average assumptions used to determine benefit obligations at December 31:
Discount Rate
CECONY	5.55	%	5.05	%	5.35	%
O&R	5.65	%	5.15	%	5.45	%
Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31:
Discount Rate
CECONY	5.05	%	5.35	%	2.75	%
O&R	5.15	%	5.45	%	3.00	%
Expected Return on Plan Assets	6.45	%	6.80	%	6.80	%

Schedule of Health Care Cost Trend Rates

The health care cost trend rates for covered medical and prescription medication expenses used to determine the accumulated other postretirement benefit obligations (APBO) at December 31, 2024 were assumed to increase each year, with the initial rate gradually decreasing to the ultimate rate as follows:


	Initial Cost Trend Rate	Ultimate Cost Trend Rate	Year That Ultimate Rate is Reached
Pre-65 Medical	7.00%	4.50%	2038
Post-65 Medical	4.50%	4.50%	—
Prescription Medications	7.50%	4.50%	2037

Schedule of Expected Benefit Payments

Based on current assumptions, the Companies expect to make the following benefit payments over the next ten years:


(Millions of Dollars)	Con Edison	CECONY
2025	$840	$781
2026	808	749
2027	820	764
2028	824	766
2029	836	778
2030-2034	$4,227	$3,952

Based on current assumptions, the Companies expect to make the following benefit payments over the next ten years, net of receipt of governmental subsidies and participant contributions:


(Millions of Dollars)	Con Edison	CECONY
2025	$67	$59
2026	68	60
2027	70	61
2028	71	62
2029	71	63
2030-2034	$346	$303

Schedule of Plan Assets Allocations

The asset allocations for the pension plan at the end of 2024, 2023 and 2022, and the target allocation for 2025 are as follows:


	Target Allocation Range	Plan Assets at December 31,
Asset Category	2025	2024		2023		2022
Equity Securities	26% - 30%	27	%	26	%	33	%
Debt Securities	42% - 60%	51	%	50	%	50	%
Real Estate and Other Alternatives	14% - 30%	22	%	24	%	17	%
Total		100	%	100	%	100	%

The asset allocations for CECONY’s other postretirement benefit plans at the end of 2024, 2023 and 2022, and the target allocation for 2025 are as follows:


	Target Allocation Range	Plan Assets at December 31,
Asset Category	2025	2024		2023		2022
Equity Securities	35%-55%	41	%	44	%	49	%
Debt Securities	40%-60%	51	%	51	%	51	%
Real Estate and Other Alternatives	—%-9%	8	%	5	%	—	%
Total	100%	100	%	100	%	100	%

Schedule of Fair Value of Plan Assets

The fair values of the pension plan assets at December 31, 2024 by asset category are as follows:


(Millions of Dollars)	Level 1	Level 2	Total
Investments within the fair value hierarchy
U.S. Equity (a)	$2,752	$—	$2,752
International Equity (b)	1,508	—	1,508
U.S. Government Issued Debt (c)	—	619	619
Corporate Bonds Debt (d)	—	5,429	5,429
Structured Assets Debt (e)	—	159	159
Other Fixed Income Debt (f)	—	783	783
Commingled Trust Fund (g)	—	478	478
Cash and Cash Equivalents (h)	51	292	343
Futures (i)	(4)	—	(4)
Total investments within the fair value hierarchy	$4,307	$7,760	$12,067
Investments measured at NAV per share (o)
Private Equity (j)			975
Real Estate (k)			1,609
Hedge Funds (l)			788
Total investments valued using NAV per share			$3,372
Funds for retiree health benefits (m)	(50)	(90)	(140)
Funds for retiree health benefits measured at NAV per share (m)(o)			(39)
Total funds for retiree health benefits			$(179)
Investments (excluding funds for retiree health benefits)	$4,257	$7,670	$15,260
Pending activities (n)			18
Total fair value of plan net assets			$15,278

(a)U.S. Equity is comprised of both actively- and passively-managed investments in domestic equity index funds and actively-managed small-capitalization equities.

(b)International Equity is comprised of investments in international equity index funds and actively-managed international equities.

(c)U.S. Government Issued Debt is comprised of agency and treasury securities.

(d)Corporate Bonds Debt is comprised of debt issued by various corporations.

(e)Structured Assets Debt is comprised of commercial-mortgage-backed securities and collateralized mortgage obligations.

(f)Other Fixed Income Debt is comprised of municipal bonds, sovereign debt and regional governments.

(g)Commingled Trust Fund is comprised of an actively managed commingled trust fund benchmarked to the Bloomberg Aggregate Bond Index.

(h)Cash and Cash Equivalents are comprised of short term investments, money markets, foreign currency and cash collateral.

(i)Futures are comprised of exchange-traded financial contracts encompassing U.S. Equity, International Equity and U.S. Government indices.

(j)Private Equity is comprised of global private market investments. Private equity's investment objective is to generate returns on capital from a diversified portfolio of primary fund investments, secondaries and co-investments. The plan's unfunded commitments to private equity were approximately $180 million at December 31, 2024. However, the managers also expect to make significant cash flow distributions in 2025 and 2026. While the investments in this asset class cannot be redeemed, the plan would be able to receive distributions from selling its limited partnership interests in the secondary market, which would be expected to take three to six months.

(k)Real Estate investments are open-end real estate funds that invest in a portfolio of real properties that are broadly diversified by geography and property type. The real estate asset class is expected to produce returns from income and capital appreciation. Real estate also provides a hedge against inflation. The funds allow for quarterly redemptions, however the amount and timing of distributions are subject to market conditions and are currently uncertain.

(l)Hedge Funds are structured as a custom fund of one and can invest in external hedge fund managers that pursue a wide array of strategies including event driven, fundamental long/short, relative value, directional trading, and direct sourcing. These investments seek to generate positive absolute returns with lower volatility than other investments. The various hedge fund managers can invest in all financial instruments. Substantially all of the investment could be liquidated within 18 months.

(m)The Companies set aside funds for retiree health benefits through a separate account within the pension trust, as permitted under Section 401(h) of the Internal Revenue Code of 1986, as amended. In accordance with the Code, the plan’s investments in the 401(h) account may not be used for, or diverted to, any purpose other than providing health benefits for retirees. The net assets held in the 401(h) account are calculated based on a pro-rata percentage allocation of the net assets in the pension plan. The related obligations for health benefits are not included in the pension plan’s obligations and are included in the Companies’ other postretirement benefit obligation. See Note F.

(n)Pending activities include security purchases and sales that have not settled, interest and dividends that have not been received and reflects adjustments for available estimates at year end.

(o)In accordance with ASU 2015-07, Fair Value Measurements (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or its equivalent), certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy.

The fair values of the pension plan assets at December 31, 2023 by asset category are as follows:


(Millions of Dollars)	Level 1	Level 2	Total
Investments within the fair value hierarchy
U.S. Equity (a)	$2,474	$1	$2,475
International Equity (b)	1,584	—	1,584
U.S. Government Issued Debt (c)	—	615	615
Corporate Bonds Debt (d)	—	5,526	5,526
Structured Assets Debt (e)	—	132	132
Other Fixed Income Debt (f)	—	735	735
Commingled Trust Fund (g)	—	475	475
Cash and Cash Equivalents (h)	36	302	338
Futures (i)	19	—	19
Total investments within the fair value hierarchy	$4,113	$7,786	$11,899
Investments measured at NAV per share (o)
Private Equity (j)			1,031
Real Estate (k)			1,876
Hedge Funds (l)			723
Total investments valued using NAV per share			$3,630
Funds for retiree health benefits (m)	(52)	(96)	(148)
Funds for retiree health benefits measured at NAV per share (m)(o)			(45)
Total funds for retiree health benefits			$(193)
Investments (excluding funds for retiree health benefits)	$4,061	$7,690	$15,336
Pending activities (n)			$68
Total fair value of plan net assets			$15,404

(a) - (o) Reference is made to footnotes (a) through (n) in the above table of pension plan assets at December 31, 2024 by asset category.

The fair values of the plans' assets at December 31, 2024 by asset category as defined by the accounting rules for fair value measurements (see Note R) are as follows:


(Millions of Dollars)	Level 1	Level 2	Total
Equity (a)	$—	$302	$302
Other Fixed Income Debt (b)	—	323	323
Cash and Cash Equivalents (c)	7	27	34
Commingled Trust Fund (d)	—	38	38
Real Estate (e)(f)			$39
Total investments	$7	$690	$736
Funds for retiree health benefits (g)	50	90	140
Investments (including funds for retiree health benefits)	$57	$780	$876
Funds for retiree health benefits measured at net asset value (f)(g)			39
Pending activities (h)			19
Total fair value of plan net assets			$934

(a)Equity is comprised of a passively managed commingled index fund benchmarked to the MSCI All Country World Index.

(b)Other Fixed Income Debt is comprised of a passively managed commingled index fund benchmarked to the Bloomberg Barclays U.S. Long Credit Index and an active separately managed portfolio indexed to the Bloomberg Barclays U.S. Long Credit Index.

(c)Cash and Cash Equivalents is comprised of short-term investments and money markets.

(d)Commingled Trust Fund is comprised of an actively managed commingled trust fund benchmarked to the Bloomberg Aggregate Bond Index.

(e)Real Estate investments are open-end real estate funds that invest in a portfolio of real properties that are broadly diversified by geography and property type. The real estate asset class is expected to produce returns from income and capital appreciation. Real estate also provides a hedge against inflation. The funds allow for quarterly redemptions, however the amount and timing of distributions are subject to market conditions and are currently uncertain.

(f)In accordance with ASU 2015-07, Fair Value Measurements (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or its equivalent), certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy.

(g)The Companies set aside funds for retiree health benefits through a separate account within the pension trust, as permitted under Section 401(h) of the Internal Revenue Code of 1986, as amended. In accordance with the Code, the plan’s investments in the 401(h) account may not be used for, or diverted to, any purpose other than providing health benefits for retirees. The net assets held in the 401(h) account are calculated based on a pro-rata percentage allocation of the net assets in the pension plan. The related obligations for health benefits are not included in the pension plan’s obligations and are included in the Companies’ other postretirement benefit obligation. See Note E.

(h)Pending activities include security purchases and sales that have not settled, interest and dividends that have not been received, and reflects adjustments for available estimates at year-end.

The fair values of the plans' assets at December 31, 2023 by asset category (see Note R) are as follows:


(Millions of Dollars)	Level 1	Level 2	Total
Equity (a)	$—	$331	$331
Other Fixed Income Debt (b)	—	323	323
Cash and Cash Equivalents (c)	7	18	25
Commingled Trust Fund (d)	—	38	38
Total investments	$7	$710	$717
Funds for retiree health benefits (e)	52	96	148
Investments (including funds for retiree health benefits)	$59	$806	$865
Funds for retiree health benefits measured at net asset value (f)(g)			45
Pending activities (h)			19
Total fair value of plan net assets			$929

(a) - (h) Reference is made to footnotes (a) through (h) in the above table of other postretirement benefit plan assets at December 31, 2024 by asset category.

The fair values of CECONY's portion of the plans' assets at December 31, 2024 by asset category as defined by the accounting rules for fair value measurements (see Note R) are as follows:


(Millions of Dollars)	Level 1	Level 2	Total
Equity (a)	$—	$205	$205
Other Fixed Income Debt (b)	—	233	233
Cash and Cash Equivalents (c)	7	26	33
Commingled Trust Fund (d)	—	38	38
Real Estate (e)(f)			$39
Total investments	$7	$502	$548
Funds for retiree health benefits (g)	50	90	$140
Investments (including funds for retiree health benefits)	$57	$592	$688
Funds for retiree health benefits measured at net asset value (f)(g)			39
Pending activities (h)			17
Total fair value of plan net assets			$744

(a) - (h) Reference is made to footnotes (a) through (h) in the above table of other postretirement benefit plan assets at December 31, 2024 by asset category.

The fair values of CECONY's portion of the plans' assets at December 31, 2023 by asset category (see Note R) are as follows:


(Millions of Dollars)	Level 1	Level 2	Total
Equity (a)	$—	$241	$241
Other Fixed Income Debt (b)	—	237	237
Cash and Cash Equivalents (c)	7	17	24
Commingled Trust Fund (d)	—	38	38
Real Estate (e)(f)
Total investments	$7	$533	$540
Funds for retiree health benefits (g)	52	96	$148
Investments (including funds for retiree health benefits)	$59	$629	$688
Funds for retiree health benefits measured at net asset value (e)(g)			45
Pending activities (h)			17
Total fair value of plan net assets			$750

(a) - (h) Reference is made to footnotes (a) through (h) in the above table of other postretirement benefit plan assets at December 31, 2024 by asset category.