Income Tax (Tables)

9 Months Ended

Sep. 30, 2025

Reconciliation of the difference between income tax expense and the amount computed by applying the prevailing statutory income tax rate to income before income taxes for the three months ended September 30, 2025 and 2024 is as follows:


	For the Three Months Ended September 30,
	Con Edison						CECONY
	2025			2024			2025			2024
(Millions of Dollars) (% of Pre-tax income)	$	%		$	%		$	%		$	%
STATUTORY TAX RATE
Federal	$187	21.0	%	$152	21.0	%	$173	21.0	%	$138	21.0	%
Changes in computed taxes resulting from:
State income taxes, net of federal income taxes (a)	47	5.3		39	5.5		43	5.2		34	5.2
MTA Surcredit amortization, net of federal taxes	(5)	(0.6)		—	—		(5)	(0.6)		1	0.2



Tax Credits	(4)	(0.5)		(7)	(1.0)		(3)	(0.4)		(4)	(0.6)
Changes in unrecognized tax benefits	1	0.1		1	0.1		1	0.1		1	0.1
Amortization of excess deferred federal income taxes (b)	(11)	(1.3)		(50)	(6.9)		(9)	(1.1)		(48)	(7.4)
Allowance for uncollectible accounts, net of regulatory recovery	(15)	(1.6)		(10)	(1.4)		(15)	(1.8)		(9)	(1.4)
Cost of removal	10	1.1		10	1.4		9	1.1		9	1.4

Other	(8)	(0.8)		(2)	(0.2)		(7)	(0.8)		(3)	(0.3)
Effective tax rate	$202	22.7	%	$133	18.5	%	$187	22.7	%	$119	18.2	%

(a) State income taxes in New York account for the majority of the tax eﬀect in this category.

(b) For CECONY, the amortization of excess deferred federal income taxes is lower in the three months ended September 30, 2025, due to the completion of regulatory amortization of non-plant and certain plant-related excess deferred federal income taxes as of December 31, 2024, representing an accelerated refund of the related regulatory liability under its current New York electric and gas rate plans.

Con Edison’s income tax expense was $493 million and $307 million for the nine months ended September 30, 2025 and 2024, respectively.

CECONY’s income tax expense was $462 million and $301 million for the nine months ended September 30, 2025 and 2024, respectively.

Reconciliation of the difference between income tax expense and the amount computed by applying the prevailing statutory income tax rate to income before income taxes for the nine months ended September 30, 2025 and 2024 is as follows:


	For the Nine Months Ended September 30,
	Con Edison						CECONY
	2025			2024			2025			2024
(Millions of Dollars) (% of Pre-tax income)	$	%		$	%		$	%		$	%
STATUTORY TAX RATE
Federal	$466	21.0	%	$382	21.0	%	$434	21.0	%	$361	21.0	%
Changes in computed taxes resulting from:
State income taxes, net of federal income taxes (a)	116	5.2		91	5.0		108.0	5.2		89.0	5.2
MTA Surcredit amortization, net of federal taxes	(26)	(1.2)		(2)	(0.1)		(25.0)	(1.2)		(1.0)	(0.1)



Tax Credits	(13)	(0.6)		(20)	(1.1)		(10.0)	(0.5)		(10.0)	(0.6)
Changes in unrecognized tax benefits	2	0.1		2	0.1		2.0	0.2		2.0	0.1
Amortization of excess deferred federal income taxes (b)	(34)	(1.5)		(152)	(8.3)		(28.0)	(1.3)		(147.0)	(8.5)
Allowance for uncollectible accounts, net of regulatory recovery	(36)	(1.6)		(14)	(0.8)		(36.0)	(1.8)		(13.0)	(0.8)

Cost of removal	29	1.3		30	1.7		26.0	1.3		27.0	1.6

Other	(11)	(0.5)		(10)	(0.6)		(9)	(0.5)		(7)	(0.4)
Effective tax rate	$493	22.2	%	$307	16.9	%	$462	22.4	%	$301	17.5	%

(a) State income taxes in New York account for the majority of the tax eﬀect in this category.

(b) For CECONY, the amortization of excess deferred federal income taxes is lower in the nine months ended September 30, 2025, due to the completion of regulatory amortization of non-plant and certain plant-related excess deferred federal income taxes as of December 31, 2024, representing an accelerated refund of the related regulatory liability under its current New York electric and gas rate plans.