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Income Tax
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Income Tax Income Tax
The components of income tax are as follows:
  Con EdisonCECONY
(Millions of Dollars)202520242023202520242023
State
Current$(49)$(81)$179$(40)$(87)$(102)
Deferred1822236159219246
Federal
Current33(17)176149(63)(95)
Deferred414198237278246311
Amortization of investment tax credits(6)(5)(111)(2)(1)(2)
Total income tax expense$574$318$487$544$314$358
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 is as follows:
  Con Edison
(Millions of Dollars) (% of Pre-tax income)202520242023
U.S. Federal Statutory Tax Rate (a)$54521.0 %$44921.0 %$63121.0 %
State Income Taxes:
State income taxes, net of federal income taxes (b)1405.4 1155.4 1655.5 
MTA Surcredit amortization, net of federal income taxes(35)(1.3)(3)(0.1)—— 
Non-NY State Income taxes related to the Clean Energy Businesses, net of federal income taxes —— —— (18)(0.6)
Tax Credits:
R&D credit and ITC amortization(10)(0.4)(19)(0.9)(20)(0.7)
Production Tax Credit  —— (6)(0.3)(12)(0.4)
Deferred unamortized ITC recognized on sale of subsidiary —— —— (107)(3.5)
Nontaxable or Nondeductible items 50.2 (2)(0.1)1— 
Changes in unrecognized tax benefits —— (2)(0.1)1— 
Other Adjustments:
Amortization of excess deferred federal income taxes (c)(50)(2.0)(203)(9.5)(172)(5.7)
Allowance for uncollectible accounts, net of regulatory recovery(43)(1.7)(25)(1.2)(14)(0.5)
Cost of removal351.4 241.1 371.2 
Other(13)(0.5)(10)(0.4)(5)(0.1)
Effective tax rate$57422.1 %$31814.9 %$48716.2 %
(a)Income before income tax expense is attributable to domestic operations.
(b)State income taxes in New York account for the majority of the tax effect in this category.
(c)The amortization of excess deferred federal income taxes is lower in 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 New York electric and gas rate plans.
  CECONY
(Millions of Dollars) (% of Pre-tax income)202520242023
U.S. Federal Statutory Tax Rate (a)$51521.0 %$43321.0 %$41221.0 %
State Income Taxes:
State income taxes, net of federal income taxes (b)1275.2 1075.2 1135.8 
MTA Surcredit amortization, net of federal income taxes(33)(1.3)(2)(0.1)—— 
Tax Credits(6)(0.2)(14)(0.7)(17)(0.8)
Nontaxable or Nondeductible items 50.2 (1)(0.1)20.1 
Changes in unrecognized tax benefits —— (2)(0.1)(2)(0.1)
Other Adjustments:
Amortization of excess deferred federal income taxes (c)(43)(1.7)(196)(9.5)(166)(8.4)
Allowance for uncollectible accounts, net of regulatory recovery(43)(1.8)(24)(1.2)(14)(0.7)
Cost of removal321.3 201.0 331.7 
Other(10)(0.5)(7)(0.3)(3)(0.4)
Effective tax rate$54422.2 %$31415.2 %$35818.2 %
(a)Income before income tax expense is attributable to domestic operations.
(b)State income taxes in New York account for the majority of the tax effect in this category.
(c)The amortization of excess deferred federal income taxes is lower in 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 New York electric and gas rate plans.
The tax effects of temporary differences, which gave rise to deferred tax assets and liabilities, are as follows:
                  Con Edison                CECONY
(Millions of Dollars)2025202420252024
Deferred tax liabilities:
Property basis differences$9,703$9,222$9,117$8,632
Regulatory assets:
   Energy efficiency and other clean energy programs 560474532449
   Customer Account Deferrals306301304297
   Environmental remediation costs303291277267
   Legacy Meters107116104112
   Other regulatory assets147260110213
Pension and Retiree Benefits – Asset1,1861,0631,1531,037
Operating lease right-of-use asset141143141142
Other 3—24—
Total deferred tax liabilities$12,456$11,870$11,762$11,149
Deferred tax assets:
Regulatory liabilities:
   Unrecognized pension and other postretirement costs$245$296$226$276
   Future income tax315343285312
   Other regulatory liabilities1,012909916809
Superfund and other environmental costs303291275265
Pensions and retiree benefits - liability158154147142
Asset retirement obligations134127134127
Operating lease liabilities141143141142
Tax credits carryforward2413468—
Corporate Alternative Minimum Tax carryforward205139213111
Loss carryforwards51423316
Valuation allowance(12)(12)——
Equity investments6880——
Other —160—140
Total deferred tax assets$2,861$3,018$2,378$2,340
 Net deferred tax liabilities $9,595$8,852$9,384$8,809
Unamortized investment tax credits24221610
Net deferred tax liabilities and unamortized investment tax credits$9,619$8,874$9,400$8,819

At December 31, 2025, Con Edison has $241 million in general business tax credit carryovers (primarily renewable energy tax credits). If unused, these general business tax credit carryovers will begin to expire in 2038. A deferred tax asset for these tax attribute carryforwards was recorded, and no valuation allowance was provided, as it is more likely than not that the deferred tax asset will be realized.

At December 31, 2025, Con Edison has a deferred tax asset on its New York state net operating loss carryforward of $46 million that will begin to expire, if unused, in 2040. No valuation allowance was provided, as it is more likely than not that the deferred tax asset will be realized.

At December 31, 2025, Con Edison has a deferred tax asset on its New York City net operating loss carryforward of $14 million that will begin to expire, if unused, in 2035. Con Edison retains a full valuation allowance against this deferred tax asset as it is not more likely than not that the deferred tax assets will be realized.

In April 2023, the IRS released Revenue Procedure 2023-15, which provides a safe harbor method of accounting that taxpayers may use to determine whether certain expenditures to maintain, repair, replace, or improve natural gas transmission and distribution property must be capitalized as improvements by the taxpayer or deducted for federal income tax purposes in the current tax year. This revenue procedure also provides procedures for taxpayers to obtain automatic consent to change their method of accounting to the safe harbor method of accounting. Con Edison adopted the safe harbor rules on its 2023 federal and state returns and recorded a reduction in its current
tax payable and an increase in accumulated deferred tax liabilities of $457 million, $418 million of which is for CECONY and $39 million of which is for O&R, to reflect the cumulative impact of this change in accounting method for the Utilities.
One Big Beautiful Bill Act
On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was signed into law, containing a broad range of tax reform provisions, including extending and modifying certain key provisions of the federal Tax Cuts and Jobs Act of 2017, as enacted on December 22, 2017 and expanding certain incentives under the federal Inflation Reduction Act, as enacted on August 16, 2022 (IRA) while accelerating the phase-out of solar and wind credits. The Companies have assessed the potential impacts of the OBBBA and any such assessments may be impacted by future guidance to be issued by the Department of Treasury. However, based on management’s assessment, the provisions in the OBBBA are not expected to have a material impact on the Companies’ financial position, results of operations or liquidity.
Corporate Alternative Minimum Tax
On August 16, 2022, the IRA was signed into law and implemented a new corporate alternative minimum tax (CAMT) that imposes a 15 percent tax on modified GAAP net income. Pursuant to the IRA, corporations are entitled to a tax credit (minimum tax credit) to the extent the CAMT liability exceeds the regular tax liability. This amount can be carried forward indefinitely and used in future years when regular tax liability exceeds the CAMT liability.

Beginning in 2024, based on the existing statute, the Companies are subject to and report the CAMT in their Consolidated Income Statements, Consolidated Statements of Cash Flows and the Consolidated Balance Sheets. At December 31, 2025, Con Edison has a CAMT credit carryforward of $205 million ($213 million of which is for CECONY). For the year ended December 31, 2025, the Companies accrued a CAMT liability of $88 million ($109 million of which is for CECONY) before the application of general business credits, with an offsetting deferred tax asset representing the minimum tax credit carryforward. The deferred tax asset related to the minimum tax credit carryforward will be realized to the extent the Companies’ consolidated deferred tax liabilities exceed the minimum tax credit carryforward. The Companies’ deferred tax liabilities are expected to exceed the minimum tax credit carryforward for the foreseeable future and thus no valuation allowance is required. The Companies are continuing to assess the impacts of the IRA on their financial statements and will update estimates based on future guidance to be issued by the Department of the Treasury.

On February 18, 2026, the IRS and the Department of Treasury issued Notice 2026-7, that provides additional interim guidance regarding the application of the CAMT and allows the Companies to deduct certain repair expenditures as a reduction to the Companies’ modified GAAP net income. This interim guidance is retroactive to the beginning of the IRA provisions in calculating the Companies’ CAMT liability.

As a result of implementing these new guidelines, the Companies will file a quick refund claim by April 15, 2026 for the 2025 tax year and amend their federal tax return for the 2024 tax year. Con Edison expects to claim tax refunds from the IRS of approximately $45 million ($161 million for CECONY) and would reduce its CAMT credit carryover by approximately $181 million ($161 million for CECONY) and increase Con Edison’s general business credits carryforward by approximately $136 million. This guidance will significantly reduce the Companies’ CAMT liability going forward.

Cash paid for income taxes (net of refunds received):
Con EdisonCECONY
(Millions of Dollars)202520242023202520242023
Federal$(21)$(1)$230$(24)$61$46
New York(143)6164(145)2(73)
New Jersey—12———
All other(1)11———
Total cash paid for income taxes (net of refunds) $(165)$7$397$(169)$63$(27)
Uncertain Tax Positions
Under the accounting rules for income taxes, the Companies are not permitted to recognize the tax benefit attributable to a tax position unless such position is more likely than not to be sustained upon examination by taxing authorities, including resolution of any related appeals and litigation processes, based solely on the technical merits of the position.
A reconciliation of the beginning and ending amounts of unrecognized tax benefits for Con Edison and CECONY follows:
Con EdisonCECONY
(Millions of Dollars)202520242023202520242023
Balance at January 1,$9$11$23$5$7$8
Additions based on tax positions related to the current year248244
Additions based on tax positions of prior years——3——1
Reductions for tax positions of prior years(2)(6)(11)(2)(6)(6)
Settlements——(12)———
Balance at December 31,$9$9$11$5$5$7

At December 31, 2025, the estimated uncertain tax positions for Con Edison was $9 million ($5 million for CECONY). For the year ended December 31, 2025, Con Edison recognized $2 million of income tax expense related to current year positions and recognized a tax benefit of $2 million related to positions in prior years, both of which were attributed to CECONY. The total amount of unrecognized tax benefits that, if recognized, would reduce Con Edison’s effective tax rate is $9 million ($8 million, net of federal taxes) with $5 million attributable to CECONY.

The Companies recognize interest on liabilities for uncertain tax positions in interest expense and would recognize penalties, if any, in operating expenses in the Companies’ consolidated income statements. In 2025, 2024 and 2023, the Companies recognized an immaterial amount of interest expense and no penalties for uncertain tax positions in their consolidated income statements. At December 31, 2025 and December 31, 2024, the Companies recognized an immaterial amount of accrued interest on their consolidated balance sheets.

Con Edison’s federal tax return for 2024 remains under examination. State and local tax returns remain open for examination in New York State for tax years 2022 through 2024, in New Jersey for tax years 2021 through 2024 and in New York City for tax years 2022 through 2024.