Income Tax (Tables)

12 Months Ended

Dec. 31, 2025

The components of income tax are as follows:


	Con Edison			CECONY
(Millions of Dollars)	2025	2024	2023	2025	2024	2023
State
Current	$(49)	$(81)	$179	$(40)	$(87)	$(102)
Deferred	182	223	6	159	219	246
Federal
Current	33	(17)	176	149	(63)	(95)
Deferred	414	198	237	278	246	311
Amortization of investment tax credits	(6)	(5)	(111)	(2)	(1)	(2)
Total income tax expense	$574	$318	$487	$544	$314	$358

Schedule of Income Tax Reconciliation

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)	2025			2024			2023

U.S. Federal Statutory Tax Rate (a)	$545	21.0	%	$449	21.0	%	$631	21.0	%
State Income Taxes:
State income taxes, net of federal income taxes (b)	140	5.4		115	5.4		165	5.5
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	5	0.2		(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 removal	35	1.4		24	1.1		37	1.2
Other	(13)	(0.5)		(10)	(0.4)		(5)	(0.1)

Effective tax rate	$574	22.1	%	$318	14.9	%	$487	16.2	%

(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)	2025			2024			2023

U.S. Federal Statutory Tax Rate (a)	$515	21.0	%	$433	21.0	%	$412	21.0	%
State Income Taxes:
State income taxes, net of federal income taxes (b)	127	5.2		107	5.2		113	5.8
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	5	0.2		(1)	(0.1)		2	0.1
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 removal	32	1.3		20	1.0		33	1.7
Other	(10)	(0.5)		(7)	(0.3)		(3)	(0.4)






Effective tax rate	$544	22.2	%	$314	15.2	%	$358	18.2	%

(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.

Schedule of Differences on Deferred Tax Assets and Liabilities

The tax effects of temporary differences, which gave rise to deferred tax assets and liabilities, are as follows:


	Con Edison		CECONY
(Millions of Dollars)	2025	2024	2025	2024
Deferred tax liabilities:
Property basis differences	$9,703	$9,222	$9,117	$8,632
Regulatory assets:
Energy efficiency and other clean energy programs	560	474	532	449
Customer Account Deferrals	306	301	304	297
Environmental remediation costs	303	291	277	267
Legacy Meters	107	116	104	112
Other regulatory assets	147	260	110	213
Pension and Retiree Benefits – Asset	1,186	1,063	1,153	1,037
Operating lease right-of-use asset	141	143	141	142
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 tax	315	343	285	312
Other regulatory liabilities	1,012	909	916	809
Superfund and other environmental costs	303	291	275	265
Pensions and retiree benefits - liability	158	154	147	142
Asset retirement obligations	134	127	134	127
Operating lease liabilities	141	143	141	142
Tax credits carryforward	241	346	8	—
Corporate Alternative Minimum Tax carryforward	205	139	213	111
Loss carryforwards	51	42	33	16
Valuation allowance	(12)	(12)	—	—
Equity investments	68	80	—	—
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 credits	24	22	16	10
Net deferred tax liabilities and unamortized investment tax credits	$9,619	$8,874	$9,400	$8,819

Schedule of Cash Paid for Income Taxes

Cash paid for income taxes (net of refunds received):


	Con Edison			CECONY
(Millions of Dollars)	2025	2024	2023	2025	2024	2023
Federal	$(21)	$(1)	$230	$(24)	$61	$46
New York	(143)	6	164	(145)	2	(73)
New Jersey	—	1	2	—	—	—
All other	(1)	1	1	—	—	—
Total cash paid for income taxes (net of refunds)	$(165)	$7	$397	$(169)	$63	$(27)

Schedule of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amounts of unrecognized tax benefits for Con Edison and CECONY follows:


	Con Edison			CECONY
(Millions of Dollars)	2025	2024	2023	2025	2024	2023
Balance at January 1,	$9	$11	$23	$5	$7	$8
Additions based on tax positions related to the current year	2	4	8	2	4	4
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