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Regulatory Matters (Tables)

9 Months Ended

Sep. 30, 2025

Regulatory assets and liabilities at September 30, 2025 and December 31, 2024 were comprised of the following items:


	Con Edison		CECONY
(Millions of Dollars)	2025	2024	2025	2024
Regulatory assets
Energy efficiency and other clean energy programs (a)	$1,772	$1,675	$1,680	$1,601
Customer account deferrals (b)	1,178	1,073	1,169	1,058
Environmental investigation and remediation costs	1,024	1,038	937	952
Revenue taxes	616	540	589	517
Legacy meters (c)	390	413	377	398
Property tax reconciliation (d)	111	131	109	131
Deferred storm costs (e)	88	147	10	53
Deferred derivative losses - long term	64	106	57	94
Unrecognized pension and other postretirement costs (f)	21	—	13	—
MTA power reliability deferral (g)	8	31	8	31

Pension and other postretirement benefits deferrals	—	2	—	2
Other	282	367	248	321
Regulatory assets – noncurrent	5,554	5,523	5,197	5,158
Deferred derivative losses - short term	116	102	108	92
Recoverable energy costs	2	39	2	14
Regulatory assets – current	118	141	110	106
Total Regulatory Assets	$5,672	$5,664	$5,307	$5,264
Regulatory liabilities
Allowance for cost of removal less salvage (h)	$1,597	$1,527	$1,383	$1,322
Future income tax*	1,146	1,224	1,039	1,112
Unrecognized pension and other postretirement costs (f)	736	1,054	684	984
Pension and other postretirement benefit deferrals	373	368	324	304
Net unbilled revenue deferrals	296	436	296	436
Late payment charge deferral	223	231	219	224
System benefit charge carrying charge	103	115	96	110
Deferred derivative gains - long term	16	8	12	6

Settlement of prudence proceeding (i)	9	10	9	10
Other	447	471	404	432
Regulatory liabilities – noncurrent	4,946	5,444	4,466	4,940
Refundable energy costs	84	59	55	18
Deferred derivative gains - short term	22	25	18	22
Revenue decoupling mechanism	17	18	—	—
Regulatory liabilities – current	123	102	73	40
Total Regulatory Liabilities	$5,069	$5,546	$4,539	$4,980

* See "Other Regulatory Matters" above.

(a) Energy Efficiency and Other Clean Energy Programs represent programs designed to increase energy efficiency achievements and other clean energy transformation efforts.

(b) Customer account deferrals include (1) the amount to be collected from customers related to the Emergency Summer Cooling Credits program for CECONY, (2) deferrals under CECONY and O&R's electric and gas rate plans for the reconciliation of write-offs of customer accounts receivable balances to amounts reflected in rates as well as for increases to the allowance for uncollectible accounts receivable and (3) deferral related to the arrears relief programs. Amounts deferred under the arrears relief programs were $279.3 million and $1.2 million for CECONY and O&R at September 30, 2025, respectively, and $323.7 million and $1.4 million at December 31, 2024, respectively, and receive a return at the pre-tax weighted average cost of capital. The Phase I and Phase II Arrears relief programs' recovery periods end in August 2026 and April 2033, respectively. The Emergency Summer Cooling Credits program recovery period ends in December 2025.

(c) Pursuant to their rate plans, CECONY and O&R are recovering the costs of legacy meters over a 15-year period beginning January 1, 2024 and a 12-year period beginning January 1, 2022, respectively.

(d) Property tax reconciliation represents the amount deferred between actual property taxes incurred and the level included in rates subject to the provisions of the respective rate plans.

(e) Deferred storm costs represent response and restoration costs, other than capital expenditures, in connection with Tropical Storm Isaias and other major storms that were deferred by the Utilities.

(f) Unrecognized pension and other postretirement costs represent the deferrals associated with the accounting rules for retirement benefits.

(g) MTA power reliability deferral represents CECONY’s costs in excess of those reflected in its prior electric rate plan to take certain actions relating to the electrical equipment that serves the Metropolitan Transportation Authority (MTA) subway system. The company is recovering this regulatory asset pursuant to its current electric rate plan.

(h) Allowance for cost of removal less salvage represents cash previously collected from customers to fund future anticipated removal expenditures.

(i) Settlement of prudence proceeding represents the remaining amount to be credited to customers pursuant to a Joint Proposal, approved by the NYSPSC in April 2016, with respect to the prudence of certain CECONY expenditures and related matters.

Schedule of Regulatory Liabilities

Regulatory assets and liabilities at September 30, 2025 and December 31, 2024 were comprised of the following items:


	Con Edison		CECONY
(Millions of Dollars)	2025	2024	2025	2024
Regulatory assets
Energy efficiency and other clean energy programs (a)	$1,772	$1,675	$1,680	$1,601
Customer account deferrals (b)	1,178	1,073	1,169	1,058
Environmental investigation and remediation costs	1,024	1,038	937	952
Revenue taxes	616	540	589	517
Legacy meters (c)	390	413	377	398
Property tax reconciliation (d)	111	131	109	131
Deferred storm costs (e)	88	147	10	53
Deferred derivative losses - long term	64	106	57	94
Unrecognized pension and other postretirement costs (f)	21	—	13	—
MTA power reliability deferral (g)	8	31	8	31

Pension and other postretirement benefits deferrals	—	2	—	2
Other	282	367	248	321
Regulatory assets – noncurrent	5,554	5,523	5,197	5,158
Deferred derivative losses - short term	116	102	108	92
Recoverable energy costs	2	39	2	14
Regulatory assets – current	118	141	110	106
Total Regulatory Assets	$5,672	$5,664	$5,307	$5,264
Regulatory liabilities
Allowance for cost of removal less salvage (h)	$1,597	$1,527	$1,383	$1,322
Future income tax*	1,146	1,224	1,039	1,112
Unrecognized pension and other postretirement costs (f)	736	1,054	684	984
Pension and other postretirement benefit deferrals	373	368	324	304
Net unbilled revenue deferrals	296	436	296	436
Late payment charge deferral	223	231	219	224
System benefit charge carrying charge	103	115	96	110
Deferred derivative gains - long term	16	8	12	6

Settlement of prudence proceeding (i)	9	10	9	10
Other	447	471	404	432
Regulatory liabilities – noncurrent	4,946	5,444	4,466	4,940
Refundable energy costs	84	59	55	18
Deferred derivative gains - short term	22	25	18	22
Revenue decoupling mechanism	17	18	—	—
Regulatory liabilities – current	123	102	73	40
Total Regulatory Liabilities	$5,069	$5,546	$4,539	$4,980

* See "Other Regulatory Matters" above.

(a) Energy Efficiency and Other Clean Energy Programs represent programs designed to increase energy efficiency achievements and other clean energy transformation efforts.

(d) Property tax reconciliation represents the amount deferred between actual property taxes incurred and the level included in rates subject to the provisions of the respective rate plans.

(f) Unrecognized pension and other postretirement costs represent the deferrals associated with the accounting rules for retirement benefits.

(h) Allowance for cost of removal less salvage represents cash previously collected from customers to fund future anticipated removal expenditures.

Schedule of Regulatory Assets Not Earning Return

Regulatory Assets Not Earning a Return*


	Con Edison		CECONY
(Millions of Dollars)	2025	2024	2025	2024
Environmental investigation and remediation costs	$1,022	$1,037	$935	$942
Revenue taxes	612	567	586	543
UB deferral for uncollectible accounts receivable	541	551	536	541
Deferred derivative losses - short-term	116	102	108	92
Deferred derivative losses - long-term	64	106	57	94
Unrecognized pension and other postretirement costs	21	—	13	—
Other	76	39	64	28
Total	$2,452	$2,402	$2,299	$2,240

*This table presents regulatory assets not earning a return for which no cash outlay has been made.

Public Utilities General Disclosures


CECONY – Electric
Effective period			January 2026 – December 2028
Base rate changes			Yr. 1 – $222 million (a) Yr. 2 – $473 million (a) Yr. 3 – $329 million (a)
Capital expenditures			Yr. 1 - $4,550 million Yr. 2 - $4,474 million Yr. 3 - $4,712 million
Amortizations to income of net liabilities			Yr. 1 – $88 million (b) Yr. 2 – $81 million (b) Yr. 3 – $78 million (b)
Other revenue sources			Retention of $75 million of annual transmission congestion revenues Potential earnings adjustment mechanism incentives for energy efficiency and other potential incentives of up to: Yr. 1 – $40 million Yr. 2 – $42 million Yr. 3 – $47 million
Revenue decoupling mechanisms			Continuation of reconciliation of actual to authorized electric delivery revenues.
Recoverable energy costs			Continuation of current rate recovery of purchased power and fuel costs.
Negative revenue adjustments			Potential charges if certain performance targets relating to service, reliability, safety and other matters are not met: Yr. 1 – $653 million Yr. 2 – $688 million Yr. 3 – $745 million
Regulatory reconciliations			Reconciliation of late payment charges and expenses for uncollectibles (c), expenses for pension and other postretirement benefits, variable-rate debt, major storms, property taxes (d), municipal infrastructure support costs (e), the impact of new laws and environmental site investigation and remediation to amounts reflected in rates (f).
Net utility plant reconciliations			Target levels reflected in rates: Electric average net plant target: Yr. 1 – $33,590 million Yr. 2 – $35,186 million Yr. 3 – $38,624 million
Average rate base			Yr. 1 – $32,935 million Yr. 2 – $35,149 million Yr. 3 – $39,174 million
Weighted average cost of capital (after-tax)			Yr. 1 – 6.98 percent Yr. 2 – 7.04 percent Yr. 3 – 7.10 percent
Authorized return on common equity			9.40 percent
Earnings sharing			Most earnings above an annual earnings threshold of 9.90 percent are to be applied to reduce regulatory assets for environmental remediation and other costs accumulated in the rate year.
Cost of long-term debt			Yr. 1 – 4.78 percent Yr. 2 – 4.90 percent Yr. 3 – 5.01 percent
Common equity ratio			48 percent

(a) The electric base rate increases shown above will be implemented on a shaped bill impact basis resulting in a consistent total bill impact of 2.80% each year with corresponding base rate increases of $234 million in Yr. 1; $410 million in Yr. 2; and $421 million in Yr. 3. New rates will be effective as of January 1, 2026. CECONY will begin billing customers at the new shaped rate once the Joint Proposal is approved by the NYSPSC. Any shortfall in revenues due to the timing of billing to customers will be collected through a surcharge including a carrying charge on the outstanding balance.

(b) Reflects regulatory liability amortization of $63 million in Yr. 1, $58 million in Yr. 2, and $55 million in Yr. 3; amortization of the protected portion of the regulatory liability for excess deferred income taxes allocable to CECONY’s electric customers of $24 million in Yr. 1, $22 million in Yr. 2, and $22 million in Yr. 3; and amortization of the non-plant portion of the regulatory liability for excess deferred income taxes allocable to CECONY’s electric customers of $1 million in Yr. 1, $1 million in Yr. 2, and $1 million in Yr. 3.

(c) During the rate plan, CECONY will calculate the annual difference between (i) its actual uncollectible expenses and late payment charges and (ii) the levels of uncollectible expenses and late payment charges provided in rates. In the event the actual net expenses (late payment charge revenues minus uncollectible expenses) are below the amounts in rates, CECONY will defer the full variance as a regulatory liability and refund to customers via surcredit. In the event the actual net expenses are above the amounts in rates, CECONY will defer the full annual variance above $8.5 million in Yr. 1; $12.75 million in Yr. 2; and $17 million in Yr. 3; as a regulatory asset for recovery via surcharge.

(d) If the level of actual expense for property taxes, excluding the effect of property tax refunds, varies in any rate year from the projected level provided in rates, the full amount of the variation will be recovered from or credited to customers via surcharge/surcredit.

(e) In general, if actual expenses for municipal infrastructure support (other than company labor) are below the amounts reflected in rates CECONY will defer the difference for credit to customers, and if the actual expenses are above the amounts reflected in rates, the company will defer for recovery from customers 80 percent of the difference subject to a maximum deferral, subject to certain conditions, of 15 percent of the amount reflected in the rate plans.

(f) In addition, the NYSDPS continues its focused operations audit to investigate CECONY's income tax accounting. Any NYSPSC ordered adjustment to CECONY's income tax accounting is expected to be refunded to or collected from customers, as determined by the NYSPSC. See "Other Regulatory Matters," below.


CECONY – Gas
Effective period			January 2026 – December 2028
Base rate changes			Yr. 1 – $(46) million (a) Yr. 2 – $170 million (a) Yr. 3 – $93 million (a)
Capital expenditures			Yr. 1 – $1,093 million Yr. 2 – $1,057 million Yr. 3 – $1,065 million
Amortizations to income of net liabilities			Yr. 1 – $90 million (b) Yr. 2 – $88 million (b) Yr. 3 – $86 million (b)
Other revenue sources			Retention of annual revenues from non-firm customers of up to $65 million and 15 percent of any such revenues above $65 million.
Revenue decoupling mechanisms			Continuation of reconciliation of actual to authorized gas delivery revenues calculated based upon revenue per customer class.
Recoverable energy costs			Continuation of current rate recovery of purchased gas costs.
Negative revenue adjustments (c)			Potential charges if performance targets relating to service, safety and other matters are not met: Yr. 1 – $133 million (h) Yr. 2 – $140 million (h) Yr. 3 – $149 million (h)
Regulatory reconciliations			Reconciliation of late payment charges and expenses for uncollectibles (d), expenses for pension and other postretirement benefits, variable-rate debt, property taxes (e), municipal infrastructure support costs (f), the impact of new laws and environmental site investigation and remediation to amounts reflected in rates (g).
Net utility plant reconciliations			Target levels reflected in rates: Gas average net plant target: Yr. 1 – $12,931 million Yr. 2 – $13,472 million Yr. 3 – $14,014 million
Average rate base			Yr. 1 – $11,485 million Yr. 2 – $12,050 million Yr. 3 – $12,615 million
Weighted average cost of capital (after-tax)			Yr. 1 – 6.98 percent Yr. 2 – 7.04 percent Yr. 3 – 7.10 percent
Authorized return on common equity			9.40 percent
Earnings sharing			Most earnings above an annual earnings threshold of 9.90 percent are to be applied to reduce regulatory assets for environmental remediation and other costs accumulated in the rate year.
Cost of long-term debt			Yr. 1 – 4.78 percent Yr. 2 – 4.90 percent Yr. 3 – 5.01 percent
Common equity ratio			48 percent

(a) The gas base rate increases shown above will be implemented on a shaped bill impact basis resulting in a consistent total bill impact of 2.01% each year with corresponding base rate increases of $28 million in Yr. 1; $69 million in Yr. 2; and $70 million in Yr. 3. New rates will be effective as of January 1, 2026. CECONY will begin billing customers at the new shaped rate once the Joint Proposal is approved by the NYSPSC. Any shortfall in revenues due to the timing of billing to customers will be collected through a surcharge including a carrying charge on the outstanding balance.

(b) Reflects regulatory liability amortization of $48 million in Yr. 1, $46 million in Yr. 2, and $45 million in Yr. 3; amortization of the protected portion of the regulatory liability for excess deferred income taxes allocable to CECONY’s gas customers of $6 million in Yr. 1, $6 million in Yr. 2, and $5 million in Yr. 3; and amortization of the unprotected portion of the regulatory liability for excess deferred income taxes allocable to CECONY’s gas customers of $36 million in Yr. 1, $36 million in Yr. 2, and $36 million in Yr. 3.

(c) $33.33 million in annual gas revenue requirement ($100 million over three years) will be recovered through a rate adjustment mechanism, subject to refund to customers relating to NYSDPS's review of CECONY's gas main welds. See "Other Regulatory Matters," below

(d) During the rate plan, CECONY will calculate the annual difference between (i) its actual uncollectible expenses and late payment charges and (ii) the levels of uncollectible expenses and late payment charges provided in rates. In the event the actual net expenses (late payment charge revenues minus uncollectible expenses) are below the amounts in rates, CECONY will defer the full variance as a regulatory liability and refund to customers via surcredit. In the event the actual net expenses are above the amounts in rates, CECONY will defer the full annual variance above $1.5 million in Yr. 1; $2.25 million in Yr. 2; and $3 million in Yr. 3; as a regulatory asset for recovery via surcharge.

(e) If the level of actual expense for property taxes, excluding the effect of property tax refunds, varies in any rate year from the projected level provided in rates, the full amount of the variation will be recovered from or credited to customers via surcharge/surcredit.

(f) In general, if actual expenses for municipal infrastructure support (other than company labor) are below the amounts reflected in rates CECONY will defer the difference for credit to customers, and if the actual expenses are above the amounts reflected in rates the company will defer for recovery from customers 80 percent of the difference subject to a maximum deferral, subject to certain conditions, of 15 percent of the amount reflected in the rate plans.

(g) In addition, the NYSDPS continues its focused operations audit to investigate CECONY's income tax accounting. Any NYSPSC ordered adjustment to CECONY’s income tax accounting is expected to be refunded to or collected from customers, as determined by the NYSPSC. See "Other Regulatory Matters," below.

(h) The rate plan includes the potential for CECONY to earn Offsetting Credit Adjustments (OCAs) to offset any gas negative revenue adjustments. OCAs may only be applied in the calendar year they are earned. Potential OCAs that may be earned are $12 million in Yr. 1, $13 million in Yr. 2, and $14 million in Yr. 3.