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Derivative Instruments and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2025

Derivative Instruments and Hedging Activities Disclosure [Abstract]

The fair values of the Companies’ derivatives, including the offsetting of assets and liabilities, on the consolidated balance sheets at December 31, 2025 and 2024 were:


(Millions of Dollars)	2025				2024
Balance Sheet Location	Gross Amounts of Recognized Assets/ (Liabilities)	Gross Amounts Offset	Net Amounts of Assets/(Liabilities) (a)		Gross Amounts of Recognized Assets/ (Liabilities)	Gross Amounts Offset	Net Amounts of Assets/(Liabilities) (a)
Con Edison
Fair value of derivative assets
Current	$175	$(90)	$85	(b)	$56	$(41)	$15	(b)
Noncurrent	149	(23)	126		39	(12)	27
Total fair value of derivative assets	$324	$(113)	$211		$95	$(53)	$42



Fair value of derivative liabilities
Current	$(75)	$45	$(30)	(b)	$(92)	$44	$(48)	(b)
Noncurrent	(18)	10	(8)		(108)	12	(96)



Total fair value of derivative liabilities	$(93)	$55	$(38)		$(200)	$56	$(144)
Net fair value derivative assets/(liabilities)	$231	$(58)	$173		$(105)	$3	$(102)
CECONY
Fair value of derivative assets
Current	$162	$(88)	$74	(b)	$51	$(40)	$11	(b)
Noncurrent	136	(19)	117		36	(11)	25
Total fair value of derivative assets	$298	$(107)	$191		$87	$(51)	$36
Fair value of derivative liabilities
Current	$(70)	$43	$(27)	(b)	$(84)	$42	$(42)	(b)
Noncurrent	(14)	8	(6)		(95)	11	(84)
Total fair value of derivative liabilities	$(84)	$51	$(33)		$(179)	$53	$(126)
Net fair value derivative assets/(liabilities)	$214	$(56)	$158		$(92)	$2	$(90)

(a)Derivative instruments and collateral were offset on the consolidated balance sheet as applicable under the accounting rules. The Companies enter into master agreements for their commodity derivatives. These agreements typically provide offset in the event of contract termination. In such case, generally the non-defaulting party’s payable will be offset by the defaulting party’s payable. The non-defaulting party will customarily notify the defaulting party within a specific time period and come to an agreement on the early termination amount.

(b)At December 31, 2025, margin deposits for Con Edison and CECONY were classified as derivative assets of $1 million and $0, respectively, and as derivative liabilities of $(16) million and $(14) million, respectively. At December 31, 2024, margin deposits for Con Edison and CECONY were classified as derivative assets of $0 each, and as derivative liabilities of $(4) million and $(2) million, respectively. These amounts are presented on the consolidated balance sheets, but not included in the table.

Schedule of Offsetting of Liabilities

The fair values of the Companies’ derivatives, including the offsetting of assets and liabilities, on the consolidated balance sheets at December 31, 2025 and 2024 were:


(Millions of Dollars)	2025				2024
Balance Sheet Location	Gross Amounts of Recognized Assets/ (Liabilities)	Gross Amounts Offset	Net Amounts of Assets/(Liabilities) (a)		Gross Amounts of Recognized Assets/ (Liabilities)	Gross Amounts Offset	Net Amounts of Assets/(Liabilities) (a)
Con Edison
Fair value of derivative assets
Current	$175	$(90)	$85	(b)	$56	$(41)	$15	(b)
Noncurrent	149	(23)	126		39	(12)	27
Total fair value of derivative assets	$324	$(113)	$211		$95	$(53)	$42



Fair value of derivative liabilities
Current	$(75)	$45	$(30)	(b)	$(92)	$44	$(48)	(b)
Noncurrent	(18)	10	(8)		(108)	12	(96)



Total fair value of derivative liabilities	$(93)	$55	$(38)		$(200)	$56	$(144)
Net fair value derivative assets/(liabilities)	$231	$(58)	$173		$(105)	$3	$(102)
CECONY
Fair value of derivative assets
Current	$162	$(88)	$74	(b)	$51	$(40)	$11	(b)
Noncurrent	136	(19)	117		36	(11)	25
Total fair value of derivative assets	$298	$(107)	$191		$87	$(51)	$36
Fair value of derivative liabilities
Current	$(70)	$43	$(27)	(b)	$(84)	$42	$(42)	(b)
Noncurrent	(14)	8	(6)		(95)	11	(84)
Total fair value of derivative liabilities	$(84)	$51	$(33)		$(179)	$53	$(126)
Net fair value derivative assets/(liabilities)	$214	$(56)	$158		$(92)	$2	$(90)

Schedule of Realized and Unrealized Gains or Losses on Commodity Derivatives

The following table presents the realized and unrealized gains or losses on derivatives that have been deferred or recognized in earnings for the years ended December 31, 2025 and 2024:


		Con Edison		CECONY
(Millions of Dollars)	Financial Statement Location	2025	2024	2025	2024
Pre-tax gains (losses) deferred in accordance with accounting rules for regulated operations:
Current	Regulatory liabilities	$140	$(49)	$130	$(49)
Noncurrent	Regulatory liabilities	111	(41)	103	(43)
Total deferred gains (losses)		$251	$(90)	$233	$(92)
Current	Regulatory assets	$5	$166	$2	$161
Current	Recoverable energy costs	54	(318)	50	(294)
Noncurrent	Regulatory assets	88	57	79	54
Total deferred or recognized gains (losses)		$147	$(95)	$131	$(79)
Net deferred or recognized gains (losses) (a)		$398	$(185)	$364	$(171)

(a) Unrealized net deferred losses on electric and gas derivatives for the Utilities decreased as a result of higher electric and gas commodity prices during the year ended December 31, 2025. Upon settlement, short-term deferred derivative losses generally increase the recoverable costs of electric and gas purchases.

Schedule of Hedged Volume of Derivative Transactions

The following table presents the hedged volume of Con Edison’s and CECONY’s commodity derivative transactions at December 31, 2025:


	Electric Energy (MWh) (a)(b)	Capacity (MW-mos) (a)	Natural Gas (Dt) (a)(b)	Refined Fuels (gallons)
Con Edison	36,356,085	29,550	311,800,000	3,780,000
CECONY	34,025,975	19,350	292,490,000	3,780,000

(a)Volumes are reported net of long and short positions, except natural gas collars where the volumes of long positions are reported.

(b)Excludes electric congestion and gas basis swap contracts which are associated with electric and gas contracts and hedged volumes.

Schedule of Aggregate Fair Value of Companies' Derivative Instruments with Credit-Risk-Related Contingent Features

The following table presents the aggregate fair value of the Companies’ derivative instruments with credit-risk-related contingent features that are in a net liability position, the collateral posted including cash and letters of credit for such positions and the additional cash collateral that would have been required to be posted had the lowest applicable credit rating been reduced one level and to below investment grade at December 31, 2025:


(Millions of Dollars)	Con Edison (a)	CECONY (a)
Aggregate fair value – net liabilities	$28	$23
Collateral posted	2	—
Additional collateral (b) (downgrade one level from current ratings)	3	2
Additional collateral (b)(c) (downgrade to below investment grade from current ratings)	41	35

(a)Non-derivative transactions for the purchase and sale of electricity and gas and qualifying derivative instruments, that have been designated as normal purchases or normal sales, are excluded from the table. These transactions primarily include purchases of electricity from independent system operators. In the event the Utilities are no longer extended unsecured credit for such purchases, the Companies would be required to post additional cash collateral of $2 million at December 31, 2025. For certain other such non-derivative transactions, the Companies could be required to post collateral under certain circumstances, including in the event counterparties had reasonable grounds for insecurity.

(b)The Companies measure the collateral requirements by taking into consideration the fair value amounts of derivative instruments that contain credit-risk-related contingent features that are in a net liability position plus amounts owed to counterparties for settled transactions and amounts required by counterparties for minimum financial security. The fair value amounts represent unrealized losses, net of any unrealized gains where the Companies have a legally enforceable right to offset.

(c)Derivative instruments that are net assets have been excluded from the table. At December 31, 2025, if Con Edison had been downgraded to below investment grade, it would have been required to post additional cash collateral for such derivative instruments of $83 million.

- Definition

Tabular disclosure of credit derivatives which includes information by sellers of credit derivatives, about each credit derivative, or each group of similar credit derivatives, including (a) the nature of the credit derivative - its term, how it arose, the events or circumstances that would require the seller to perform under the credit derivative, and the current status of the payment/performance risk of the credit derivative; (b) the maximum potential amount of future payments (undiscounted) the seller could be required to make under the credit derivative; (c) the current fair value of the credit derivative; and (d) the nature of any recourse provisions under the credit derivative, and any assets held either as collateral or by third parties. A credit derivative is a derivative instrument (1) in which one or more of its underlyings are related to the credit risk of a specified entity (or a group of entities) or an index based on the credit risk of a group of entities and (2) that exposes the seller to potential loss from credit-risk-related events specified in the contract. Examples of credit derivatives within the scope of this paragraph include, but are not limited to, credit default swaps, credit spread options, and credit index products; also includes a hybrid instrument that has an embedded credit derivative (for example, but not limited to, a credit-linked note).

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