Financial Information by Business Segment

12 Months Ended

Dec. 31, 2012

Financial Information by Business Segment

Note N — Financial Information by Business Segment

The business segments of each of the Companies, which are its operating segments, were determined based on management’s reporting and decision-making requirements in accordance with the accounting rules for segment reporting.

Con Edison’s principal business segments are CECONY’s regulated utility activities, O&R’s regulated utility activities and Con Edison’s competitive energy businesses. CECONY’s principal business segments are its regulated electric, gas and steam utility activities.

All revenues of these business segments, excluding revenues earned by Con Edison Development on certain energy infrastructure projects, which are deemed to be immaterial, are from customers located in the United States of America. Also, all assets of the business segments, excluding certain investments in energy infrastructure projects by Con Edison Development ($228 million at December 31, 2012), are located in the United States of America. The accounting policies of the segments are the same as those described in Note A.

Common services shared by the business segments are assigned directly or allocated based on various cost factors, depending on the nature of the service provided.

The financial data for the business segments are as follows:

As of and for the Year Ended December 31, 2012 (Millions of Dollars)	Operating revenues			Inter-segment revenues			Depreciation and amortization		Operating income			Interest charges			Income tax expense		Total assets*		Construction expenditures
CECONY
Electric	$	8,176		$	15		$	710	$	1,693		$	423		$	393	$	28,339	$	1,375
Gas		1,415			5			120		346			82			99		5,925		426
Steam		596			77			64		54			40			22		2,621		108
Consolidation adjustments		-			(97	)		-		-			-			-		-		-
Total CECONY	$	10,187		$	-		$	894	$	2,093		$	545		$	514	$	36,885	$	1,909
O&R
Electric	$	592		$	-		$	38	$	83		$	19		$	17	$	1,960	$	98
Gas		203			-			15		40			10			11		706		39
Other*		-			-			-		-			2			-		5		-
Total O&R	$	795		$	-		$	53	$	123		$	31		$	28	$	2,671	$	137
Competitive energy businesses	$	1,213		$	8		$	8	$	125		$	1		$	52	$	1,061	$	492
Other**		(7	)		(8	)		-		(2	)		27			-		592		-
Total Con Edison	$	12,188		$	-		$	955	$	2,339		$	604		$	594	$	41,209	$	2,538
As of and for the Year Ended December 31, 2011 (Millions of Dollars)	Operating revenues			Inter-segment revenues			Depreciation and amortization		Operating income			Interest charges			Income tax expense		Total assets*		Construction expenditures
CECONY
Electric	$	8,228		$	12		$	656	$	1,695		$	414		$	481	$	27,123	$	1,354
Gas		1,521			5			110		295			78			43		5,518		335
Steam		683			79			63		93			42			43		2,577		89
Consolidation adjustments		-			(96	)		-		-			-			-		-		-
Total CECONY	$	10,432		$	-		$	829	$	2,083		$	534		$	567	$	35,218	$	1,778
O&R
Electric	$	641		$	-		$	35	$	81		$	20		$	21	$	1,755	$	79
Gas		214			-			13		33			12			9		722		32
Other*		-			-			-		-			2			-		8		-
Total O&R	$	855		$	-		$	48	$	114		$	34		$	30	$	2,485	$	111
Competitive energy businesses	$	1,617		$	13		$	7	$	46		$	(1	)	$	20	$	856	$	114
Other**		(18	)		(13	)		-		(4	)		27			-		655		-
Total Con Edison	$	12,886		$	-		$	884	$	2,239		$	594		$	617	$	39,214	$	2,003
As of and for the Year Ended December 31, 2010 (Millions of Dollars)	Operating revenues			Inter-segment revenues			Depreciation and amortization		Operating income			Interest charges			Income tax expense		Total assets*		Construction expenditures
CECONY
Electric	$	8,376		$	12		$	623	$	1,549		$	424		$	371	$	25,045	$	1,421
Gas		1,541			5			102		310			82			91		5,095		334
Steam		656			74			62		63			43			29		2,465		111
Consolidation adjustments		-			(91	)		-		-			-			-		-		-
Total CECONY	$	10,573		$	-		$	787	$	1,922		$	549		$	491	$	32,605	$	1,866
O&R
Electric	$	692		$	-		$	32	$	74		$	22		$	18	$	1,630	$	99
Gas		218			-			12		34			12			8		686		36
Other*		-			-			-		-			1			-		32		-
Total O&R	$	910		$	-		$	44	$	108		$	35		$	26	$	2,348	$	135
Competitive energy businesses	$	1,883		$	9		$	9	$	97		$	(3	)	$	37	$	828	$	28
Other**		(41	)		(9	)		-		(7	)		28			-		567		-
Total Con Edison	$	13,325		$	-		$	840	$	2,120		$	609		$	554	$	36,348	$	2,029

* Includes amounts related to the RECO securitization.

** Parent company expenses, primarily interest, and consolidation adjustments. Other does not represent a business segment.

In July 2012, Con Edison Development purchased a company that is developing 70 MW (AC) of solar energy projects in Alpaugh, California (Alpaugh). Electricity generated by the projects is to be purchased by Pacific Gas and Electric Company pursuant to long-term power purchase agreements (PPA). Alpaugh was purchased for $288 million, including contingent consideration of $2 million and $4 million in deposits relating to the PPA and interconnection agreements. The total cost to acquire and construct these projects was $340 million. Alpaugh commenced commercial operation in December 2012.

In October 2012, Con Edison Development purchased two companies that are developing 40 MW (AC) of solar energy projects in Tulare and Kings County, California. Electricity generated by the projects is to be purchased by Pacific Gas and Electric Company pursuant to long-term PPAs. The projects were purchased for approximately $51 million, of which $39 million has been allocated to construction work in progress and $12 million to deposits relating to the PPA and interconnection agreements. The total cost to acquire and construct these projects is estimated to be $200 million.

CECONY [Member]

Financial Information by Business Segment

Note N — Financial Information by Business Segment

The business segments of each of the Companies, which are its operating segments, were determined based on management’s reporting and decision-making requirements in accordance with the accounting rules for segment reporting.

Con Edison’s principal business segments are CECONY’s regulated utility activities, O&R’s regulated utility activities and Con Edison’s competitive energy businesses. CECONY’s principal business segments are its regulated electric, gas and steam utility activities.

All revenues of these business segments, excluding revenues earned by Con Edison Development on certain energy infrastructure projects, which are deemed to be immaterial, are from customers located in the United States of America. Also, all assets of the business segments, excluding certain investments in energy infrastructure projects by Con Edison Development ($228 million at December 31, 2012), are located in the United States of America. The accounting policies of the segments are the same as those described in Note A.

Common services shared by the business segments are assigned directly or allocated based on various cost factors, depending on the nature of the service provided.

The financial data for the business segments are as follows:

As of and for the Year Ended December 31, 2012 (Millions of Dollars)	Operating revenues			Inter-segment revenues			Depreciation and amortization		Operating income			Interest charges			Income tax expense		Total assets*		Construction expenditures
CECONY
Electric	$	8,176		$	15		$	710	$	1,693		$	423		$	393	$	28,339	$	1,375
Gas		1,415			5			120		346			82			99		5,925		426
Steam		596			77			64		54			40			22		2,621		108
Consolidation adjustments		-			(97	)		-		-			-			-		-		-
Total CECONY	$	10,187		$	-		$	894	$	2,093		$	545		$	514	$	36,885	$	1,909
O&R
Electric	$	592		$	-		$	38	$	83		$	19		$	17	$	1,960	$	98
Gas		203			-			15		40			10			11		706		39
Other*		-			-			-		-			2			-		5		-
Total O&R	$	795		$	-		$	53	$	123		$	31		$	28	$	2,671	$	137
Competitive energy businesses	$	1,213		$	8		$	8	$	125		$	1		$	52	$	1,061	$	492
Other**		(7	)		(8	)		-		(2	)		27			-		592		-
Total Con Edison	$	12,188		$	-		$	955	$	2,339		$	604		$	594	$	41,209	$	2,538
As of and for the Year Ended December 31, 2011 (Millions of Dollars)	Operating revenues			Inter-segment revenues			Depreciation and amortization		Operating income			Interest charges			Income tax expense		Total assets*		Construction expenditures
CECONY
Electric	$	8,228		$	12		$	656	$	1,695		$	414		$	481	$	27,123	$	1,354
Gas		1,521			5			110		295			78			43		5,518		335
Steam		683			79			63		93			42			43		2,577		89
Consolidation adjustments		-			(96	)		-		-			-			-		-		-
Total CECONY	$	10,432		$	-		$	829	$	2,083		$	534		$	567	$	35,218	$	1,778
O&R
Electric	$	641		$	-		$	35	$	81		$	20		$	21	$	1,755	$	79
Gas		214			-			13		33			12			9		722		32
Other*		-			-			-		-			2			-		8		-
Total O&R	$	855		$	-		$	48	$	114		$	34		$	30	$	2,485	$	111
Competitive energy businesses	$	1,617		$	13		$	7	$	46		$	(1	)	$	20	$	856	$	114
Other**		(18	)		(13	)		-		(4	)		27			-		655		-
Total Con Edison	$	12,886		$	-		$	884	$	2,239		$	594		$	617	$	39,214	$	2,003
As of and for the Year Ended December 31, 2010 (Millions of Dollars)	Operating revenues			Inter-segment revenues			Depreciation and amortization		Operating income			Interest charges			Income tax expense		Total assets*		Construction expenditures
CECONY
Electric	$	8,376		$	12		$	623	$	1,549		$	424		$	371	$	25,045	$	1,421
Gas		1,541			5			102		310			82			91		5,095		334
Steam		656			74			62		63			43			29		2,465		111
Consolidation adjustments		-			(91	)		-		-			-			-		-		-
Total CECONY	$	10,573		$	-		$	787	$	1,922		$	549		$	491	$	32,605	$	1,866
O&R
Electric	$	692		$	-		$	32	$	74		$	22		$	18	$	1,630	$	99
Gas		218			-			12		34			12			8		686		36
Other*		-			-			-		-			1			-		32		-
Total O&R	$	910		$	-		$	44	$	108		$	35		$	26	$	2,348	$	135
Competitive energy businesses	$	1,883		$	9		$	9	$	97		$	(3	)	$	37	$	828	$	28
Other**		(41	)		(9	)		-		(7	)		28			-		567		-
Total Con Edison	$	13,325		$	-		$	840	$	2,120		$	609		$	554	$	36,348	$	2,029

* Includes amounts related to the RECO securitization.

** Parent company expenses, primarily interest, and consolidation adjustments. Other does not represent a business segment.

In July 2012, Con Edison Development purchased a company that is developing 70 MW (AC) of solar energy projects in Alpaugh, California (Alpaugh). Electricity generated by the projects is to be purchased by Pacific Gas and Electric Company pursuant to long-term power purchase agreements (PPA). Alpaugh was purchased for $288 million, including contingent consideration of $2 million and $4 million in deposits relating to the PPA and interconnection agreements. The total cost to acquire and construct these projects was $340 million. Alpaugh commenced commercial operation in December 2012.

In October 2012, Con Edison Development purchased two companies that are developing 40 MW (AC) of solar energy projects in Tulare and Kings County, California. Electricity generated by the projects is to be purchased by Pacific Gas and Electric Company pursuant to long-term PPAs. The projects were purchased for approximately $51 million, of which $39 million has been allocated to construction work in progress and $12 million to deposits relating to the PPA and interconnection agreements. The total cost to acquire and construct these projects is estimated to be $200 million.