x | Quarterly Report Pursuant To Section 13 or 15(d) of the Securities Exchange Act of 1934 |
¨ | Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
Commission File Number | Exact name of registrant as specified in its charter and principal office address and telephone number | State of Incorporation | I.R.S. Employer ID. Number | |||
1-14514 | Consolidated Edison, Inc. | New York | 13-3965100 | |||
4 Irving Place, New York, New York 10003 | ||||||
(212) 460-4600 | ||||||
1-1217 | Consolidated Edison Company of New York, Inc. | New York | 13-5009340 | |||
4 Irving Place, New York, New York 10003 | ||||||
(212) 460-4600 |
Consolidated Edison, Inc. (Con Edison) | Yes x | No ¨ |
Consolidated Edison Company of New York, Inc. (CECONY) | Yes x | No ¨ |
Con Edison | Yes x | No ¨ |
CECONY | Yes x | No ¨ |
Con Edison | |||
Large accelerated filer x | Accelerated filer ¨ | Non-accelerated filer ¨ | Smaller reporting company ¨ |
CECONY | |||
Large accelerated filer ¨ | Accelerated filer ¨ | Non-accelerated filer x | Smaller reporting company ¨ |
Con Edison | Yes ¨ | No x |
CECONY | Yes ¨ | No x |
Con Edison Companies | |
Con Edison | Consolidated Edison, Inc. |
CECONY | Consolidated Edison Company of New York, Inc. |
Con Edison Development | Consolidated Edison Development, Inc. |
Con Edison Energy | Consolidated Edison Energy, Inc. |
Con Edison Solutions | Consolidated Edison Solutions, Inc. |
Con Edison Transmission | Consolidated Edison Transmission, LLC |
O&R | Orange and Rockland Utilities, Inc. |
Pike | Pike County Light & Power Company |
RECO | Rockland Electric Company |
The Companies | Con Edison and CECONY |
The Utilities | CECONY and O&R |
Regulatory Agencies, Government Agencies, and Quasi-governmental Not-for-Profits | |
EPA | U. S. Environmental Protection Agency |
FERC | Federal Energy Regulatory Commission |
IRS | Internal Revenue Service |
NJBPU | New Jersey Board of Public Utilities |
NJDEP | New Jersey Department of Environmental Protection |
NYISO | New York Independent System Operator |
NYPA | New York Power Authority |
NYSDEC | New York State Department of Environmental Conservation |
NYSERDA | New York State Energy Research and Development Authority |
NYSPSC | New York State Public Service Commission |
NYSRC | New York State Reliability Council, LLC |
PAPUC | Pennsylvania Public Utility Commission |
PJM | PJM Interconnection LLC |
SEC | U.S. Securities and Exchange Commission |
Accounting | |
ASU | Accounting Standards Update |
FASB | Financial Accounting Standards Board |
GAAP | Generally Accepted Accounting Principles in the United States of America |
LILO | Lease In/Lease Out |
OCI | Other Comprehensive Income |
VIE | Variable interest entity |
Environmental | |
CO2 | Carbon dioxide |
GHG | Greenhouse gases |
MGP Sites | Manufactured gas plant sites |
PCBs | Polychlorinated biphenyls |
PRP | Potentially responsible party |
Superfund | Federal Comprehensive Environmental Response, Compensation and Liability Act of 1980 and similar state statutes |
Units of Measure | |
AC | Alternating current |
Dt | Dekatherms |
kV | Kilovolt |
kWh | Kilowatt-hour |
MDt | Thousand dekatherms |
MMlb | Million pounds |
MVA | Megavolt ampere |
MW | Megawatt or thousand kilowatts |
MWH | Megawatt hour |
Other | |
AFUDC | Allowance for funds used during construction |
COSO | Committee of Sponsoring Organizations of the Treadway Commission |
DER | Distributed energy resources |
DSP | Distributed System Platform |
Fitch | Fitch Ratings |
First Quarter Form 10-Q | The Companies' combined Quarterly Report on Form 10-Q for the quarterly period ended March 31 of the current year |
Second Quarter Form 10-Q | The Companies' combined Quarterly Report on Form 10-Q for the quarterly period ended June 30 of the current year |
Form 10-K | The Companies’ combined Annual Report on Form 10-K for the year ended December 31, 2014 |
LTIP | Long Term Incentive Plan |
Moody’s | Moody’s Investors Service |
REV | Reforming the Energy Vision |
S&P | Standard & Poor’s Financial Services LLC |
VaR | Value-at-Risk |
PAGE | ||
ITEM 1 | Financial Statements (Unaudited) | |
Con Edison | ||
CECONY | ||
ITEM 2 | ||
ITEM 3 | ||
ITEM 4 | ||
ITEM 1 | ||
ITEM 1A | ||
ITEM 2 | ||
ITEM 6 | ||
• | the Companies are extensively regulated and are subject to penalties; |
• | the Utilities’ rate plans may not provide a reasonable return; |
• | the Companies may be adversely affected by changes to the Utilities’ rate plans; |
• | the intentional misconduct of employees or contractors could adversely affect the Companies; |
• | the failure of, or damage to, the Companies’ facilities could adversely affect the Companies; |
• | a cyber attack could adversely affect the Companies; |
• | the Companies are exposed to risks from the environmental consequences of their operations; |
• | a disruption in the wholesale energy markets or failure by an energy supplier could adversely affect the Companies; |
• | the Companies have substantial unfunded pension and other postretirement benefit liabilities; |
• | Con Edison’s ability to pay dividends or interest depends on dividends from its subsidiaries; |
• | the Companies require access to capital markets to satisfy funding requirements; |
• | the Companies’ strategies may not be effective to address changes in the external business environment; and |
• | the Companies also face other risks that are beyond their control. |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||
2015 | 2014 | 2015 | 2014 | |||
(Millions of Dollars/ Except Share Data) | ||||||
OPERATING REVENUES | ||||||
Electric | $2,040 | $2,134 | $4,175 | $4,372 | ||
Gas | 324 | 395 | 1,056 | 1,277 | ||
Steam | 96 | 98 | 471 | 439 | ||
Non-utility | 328 | 284 | 702 | 612 | ||
TOTAL OPERATING REVENUES | 2,788 | 2,911 | 6,404 | 6,700 | ||
OPERATING EXPENSES | ||||||
Purchased power | 660 | 783 | 1,544 | 1,746 | ||
Fuel | 31 | 34 | 185 | 189 | ||
Gas purchased for resale | 89 | 151 | 351 | 551 | ||
Other operations and maintenance | 802 | 801 | 1,616 | 1,627 | ||
Depreciation and amortization | 276 | 265 | 555 | 526 | ||
Taxes, other than income taxes | 458 | 467 | 955 | 966 | ||
TOTAL OPERATING EXPENSES | 2,316 | 2,501 | 5,206 | 5,605 | ||
Gain on sale of solar energy projects | — | 45 | — | 45 | ||
OPERATING INCOME | 472 | 455 | 1,198 | 1,140 | ||
OTHER INCOME (DEDUCTIONS) | ||||||
Investment and other income | 14 | 14 | 19 | 25 | ||
Allowance for equity funds used during construction | 1 | 1 | 2 | 3 | ||
Other deductions | (5) | (6) | (7) | (8) | ||
TOTAL OTHER INCOME | 10 | 9 | 14 | 20 | ||
INCOME BEFORE INTEREST AND INCOME TAX EXPENSE | 482 | 464 | 1,212 | 1,160 | ||
INTEREST EXPENSE | ||||||
Interest on long-term debt | 156 | 147 | 311 | 293 | ||
Other interest (income) | 7 | 4 | 13 | (5) | ||
Allowance for borrowed funds used during construction | (1) | (1) | (1) | (2) | ||
NET INTEREST EXPENSE | 162 | 150 | 323 | 286 | ||
INCOME BEFORE INCOME TAX EXPENSE | 320 | 314 | 889 | 874 | ||
INCOME TAX EXPENSE | 101 | 102 | 300 | 300 | ||
NET INCOME FOR COMMON STOCK | $219 | $212 | $589 | $574 | ||
Net income for common stock per common share—basic | $0.75 | $0.73 | $2.01 | $1.96 | ||
Net income for common stock per common share—diluted | $0.74 | $0.72 | $2.01 | $1.95 | ||
DIVIDENDS DECLARED PER SHARE OF COMMON STOCK | $0.65 | $0.63 | $1.30 | $1.26 | ||
AVERAGE NUMBER OF SHARES OUTSTANDING—BASIC (IN MILLIONS) | 292.9 | 292.9 | 292.9 | 292.9 | ||
AVERAGE NUMBER OF SHARES OUTSTANDING—DILUTED (IN MILLIONS) | 294.0 | 294.0 | 293.9 | 294.0 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||
2015 | 2014 | 2015 | 2014 | |
(Millions of Dollars) | ||||
NET INCOME | $219 | $212 | $589 | $574 |
OTHER COMPREHENSIVE INCOME, NET OF TAXES | ||||
Pension and other postretirement benefit plan liability adjustments, net of taxes | 1 | 1 | 6 | 5 |
TOTAL OTHER COMPREHENSIVE INCOME, NET OF TAXES | 1 | 1 | 6 | 5 |
COMPREHENSIVE INCOME FOR COMMON STOCK | $220 | $213 | $595 | $579 |
For the Six Months Ended June 30, | ||||
2015 | 2014 | |||
(Millions of Dollars) | ||||
OPERATING ACTIVITIES | ||||
Net income | $589 | $574 | ||
PRINCIPAL NON-CASH CHARGES/(CREDITS) TO INCOME | ||||
Depreciation and amortization | 555 | 526 | ||
Deferred income taxes | 202 | 162 | ||
Rate case amortization and accruals | (20) | 61 | ||
Common equity component of allowance for funds used during construction | (2) | (3) | ||
Net derivative gains (loss) | 8 | (15) | ||
Pre-tax gain on sale of solar electric production projects | — | (45) | ||
Other non-cash items (net) | 18 | (6) | ||
CHANGES IN ASSETS AND LIABILITIES | ||||
Accounts receivable – customers, less allowance for uncollectibles | 35 | 24 | ||
Special deposits | 4 | 312 | ||
Materials and supplies, including fuel oil and gas in storage | 48 | 40 | ||
Other receivables and other current assets | (21) | 2 | ||
Income taxes receivable | 224 | — | ||
Prepayments | (144) | (11) | ||
Accounts payable | (158) | 21 | ||
Pensions and retiree benefits obligations (net) | 379 | 404 | ||
Pensions and retiree benefits contributions | (407) | (406) | ||
Accrued taxes | (20) | (407) | ||
Accrued interest | (1) | (76) | ||
Superfund and environmental remediation costs (net) | 15 | 16 | ||
Distributions from equity investments related to renewable electric production projects | 18 | — | ||
Deferred charges, noncurrent assets and other regulatory assets | (3) | (35) | ||
Deferred credits and other regulatory liabilities | 136 | 158 | ||
Other current and noncurrent liabilities | 31 | (39) | ||
NET CASH FLOWS FROM OPERATING ACTIVITIES | 1,486 | 1,257 | ||
INVESTING ACTIVITIES | ||||
Utility construction expenditures | (1,174) | (1,073) | ||
Cost of removal less salvage | (105) | (99) | ||
Non-utility construction expenditures | (178) | (113) | ||
Investments in/acquisitions of renewable electric production projects | (252) | (107) | ||
Proceeds from grants related to solar electric production projects | — | 36 | ||
Proceeds from sale of solar electric production projects | — | 108 | ||
Return of equity investments related to renewable electric production projects | 6 | — | ||
Restricted cash | (22) | 15 | ||
NET CASH FLOWS USED IN INVESTING ACTIVITIES | (1,725) | (1,233) | ||
FINANCING ACTIVITIES | ||||
Net issuance of short-term debt | 445 | 80 | ||
Issuance of long-term debt | 238 | 850 | ||
Retirement of long-term debt | (45) | (478) | ||
Debt issuance costs | (2) | (6) | ||
Common stock dividends | (380) | (368) | ||
Issuance of common shares for stock plans, net of repurchases | (7) | (2) | ||
NET CASH FLOWS FROM FINANCING ACTIVITIES | 249 | 76 | ||
CASH AND TEMPORARY CASH INVESTMENTS: | ||||
NET CHANGE FOR THE PERIOD | 10 | 100 | ||
BALANCE AT BEGINNING OF PERIOD | 699 | 674 | ||
BALANCE AT END OF PERIOD | $709 | $774 | ||
SUPPLEMENTAL DISCLOSURE OF CASH INFORMATION | ||||
Cash paid/(received) during the period for: | ||||
Interest | $305 | $277 | ||
Income taxes | $(9) | $518 | ||
SUPPLEMENTAL DISCLOSURE OF NON-CASH INFORMATION | ||||
Construction expenditures in accounts payable | $213 | $140 |
June 30, 2015 | December 31, 2014 | |||
(Millions of Dollars) | ||||
ASSETS | ||||
CURRENT ASSETS | ||||
Cash and temporary cash investments | $709 | $699 | ||
Special deposits | 4 | 8 | ||
Accounts receivable – customers, less allowance for uncollectible accounts of $91 and $96 in 2015 and 2014, respectively | 1,084 | 1,201 | ||
Other receivables, less allowance for uncollectible accounts of $10 in 2015 and 2014 | 255 | 133 | ||
Income taxes receivable | — | 224 | ||
Accrued unbilled revenue | 361 | 500 | ||
Fuel oil, gas in storage, materials and supplies, at average cost | 321 | 372 | ||
Prepayments | 307 | 163 | ||
Regulatory assets | 75 | 148 | ||
Deferred tax assets | 173 | 128 | ||
Assets held for sale | 167 | — | ||
Other current assets | 223 | 278 | ||
TOTAL CURRENT ASSETS | 3,679 | 3,854 | ||
INVESTMENTS | 848 | 816 | ||
UTILITY PLANT, AT ORIGINAL COST | ||||
Electric | 25,741 | 25,091 | ||
Gas | 6,329 | 6,102 | ||
Steam | 2,288 | 2,251 | ||
General | 2,517 | 2,465 | ||
TOTAL | 36,875 | 35,909 | ||
Less: Accumulated depreciation | 7,826 | 7,614 | ||
Net | 29,049 | 28,295 | ||
Construction work in progress | 996 | 1,031 | ||
NET UTILITY PLANT | 30,045 | 29,326 | ||
NON-UTILITY PLANT | ||||
Non-utility property, less accumulated depreciation of $85 and $91 in 2015 and 2014, respectively | 475 | 388 | ||
Construction work in progress | 403 | 113 | ||
NET PLANT | 30,923 | 29,827 | ||
OTHER NONCURRENT ASSETS | ||||
Goodwill | 429 | 429 | ||
Intangible assets, less accumulated amortization of $4 in 2015 and 2014 | 3 | 3 | ||
Regulatory assets | 8,646 | 9,156 | ||
Other deferred charges and noncurrent assets | 223 | 223 | ||
TOTAL OTHER NONCURRENT ASSETS | 9,301 | 9,811 | ||
TOTAL ASSETS | $44,751 | $44,308 |
June 30, 2015 | December 31, 2014 | ||
(Millions of Dollars) | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||
CURRENT LIABILITIES | |||
Long-term debt due within one year | $460 | $560 | |
Notes payable | 1,245 | 800 | |
Accounts payable | 845 | 1,019 | |
Customer deposits | 348 | 344 | |
Accrued taxes | 52 | 72 | |
Accrued interest | 131 | 132 | |
Accrued wages | 100 | 95 | |
Fair value of derivative liabilities | 32 | 64 | |
Regulatory liabilities | 142 | 187 | |
Liabilities held for sale | 91 | — | |
Other current liabilities | 489 | 508 | |
TOTAL CURRENT LIABILITIES | 3,935 | 3,781 | |
NONCURRENT LIABILITIES | |||
Provision for injuries and damages | 186 | 182 | |
Pensions and retiree benefits | 3,420 | 3,914 | |
Superfund and other environmental costs | 751 | 764 | |
Asset retirement obligations | 193 | 188 | |
Fair value of derivative liabilities | 24 | 13 | |
Deferred income taxes and investment tax credits | 9,408 | 9,076 | |
Regulatory liabilities | 1,947 | 1,993 | |
Other deferred credits and noncurrent liabilities | 165 | 181 | |
TOTAL NONCURRENT LIABILITIES | 16,094 | 16,311 | |
LONG-TERM DEBT | 11,925 | 11,631 | |
EQUITY | |||
Common shareholders’ equity | 12,788 | 12,576 | |
Noncontrolling interest | 9 | 9 | |
TOTAL EQUITY (See Statement of Equity) | 12,797 | 12,585 | |
TOTAL LIABILITIES AND EQUITY | $44,751 | $44,308 |
(Millions of Dollars/Except Share Data) | Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Capital Stock Expense | Accumulated Other Comprehensive Income/(Loss) | Noncontrolling Interest | Total | ||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||
BALANCE AS OF DECEMBER 31, 2013 | 292,872,396 | $32 | $4,995 | $8,338 | 23,210,200 | $(1,034) | $(61) | $(25) | $— | $12,245 | ||||||||||||
Net income for common stock | 361 | 361 | ||||||||||||||||||||
Common stock dividends | (184) | (184) | ||||||||||||||||||||
Issuance of common shares for stock plans, net of repurchases | 51,656 | (2) | (51,656 | ) | 2 | — | ||||||||||||||||
Other comprehensive income | 4 | 4 | ||||||||||||||||||||
Noncontrolling interest | — | — | ||||||||||||||||||||
BALANCE AS OF MARCH 31, 2014 | 292,924,052 | $32 | $4,993 | $8,515 | 23,158,544 | $(1,032) | $(61) | $(21) | $— | $12,426 | ||||||||||||
Net income for common stock | 212 | 212 | ||||||||||||||||||||
Common stock dividends | (184) | (184) | ||||||||||||||||||||
Issuance of common shares for stock plans, net of repurchases | (45,658 | ) | — | 45,658 | — | — | ||||||||||||||||
Other comprehensive income | 1 | 1 | ||||||||||||||||||||
Noncontrolling interest | — | — | ||||||||||||||||||||
BALANCE AS OF JUNE 30, 2014 | 292,878,394 | $32 | $4,993 | $8,543 | 23,204,202 | $(1,032) | $(61) | $(20) | $— | $12,455 | ||||||||||||
BALANCE AS OF DECEMBER 31, 2014 | 292,876,196 | $32 | $4,991 | $8,691 | 23,206,400 | $(1,032) | $(61) | $(45) | $9 | $12,585 | ||||||||||||
Net income for common stock | 370 | 370 | ||||||||||||||||||||
Common stock dividends | (190) | (190) | ||||||||||||||||||||
Issuance of common shares for stock plans, net of repurchases | 24,600 | 2 | (24,600 | ) | (2) | — | ||||||||||||||||
Other comprehensive income | 5 | 5 | ||||||||||||||||||||
Noncontrolling interest | — | — | ||||||||||||||||||||
BALANCE AS OF MARCH 31, 2015 | 292,900,796 | $32 | $4,993 | $8,871 | 23,181,800 | $(1,034) | $(61) | $(40) | $9 | $12,770 | ||||||||||||
Net income for common stock | 219 | 219 | ||||||||||||||||||||
Common stock dividends | (190) | (190) | ||||||||||||||||||||
Issuance of common shares for stock plans, net of repurchases | (28,134 | ) | — | 28,134 | (3) | (3) | ||||||||||||||||
Other comprehensive income | 1 | 1 | ||||||||||||||||||||
Noncontrolling interest | — | — | ||||||||||||||||||||
BALANCE AS OF JUNE 30, 2015 | 292,872,662 | $32 | $4,993 | $8,900 | 23,209,934 | $(1,037) | $(61) | $(39) | $9 | $12,797 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||
2015 | 2014 | 2015 | 2014 | |||
(Millions of Dollars) | ||||||
OPERATING REVENUES | ||||||
Electric | $1,879 | $1,978 | $3,858 | $4,053 | ||
Gas | 308 | 360 | 963 | 1,149 | ||
Steam | 96 | 98 | 471 | 439 | ||
TOTAL OPERATING REVENUES | 2,283 | 2,436 | 5,292 | 5,641 | ||
OPERATING EXPENSES | ||||||
Purchased power | 358 | 517 | 897 | 1,135 | ||
Fuel | 31 | 34 | 185 | 189 | ||
Gas purchased for resale | 54 | 104 | 252 | 451 | ||
Other operations and maintenance | 687 | 699 | 1,390 | 1,424 | ||
Depreciation and amortization | 254 | 247 | 511 | 486 | ||
Taxes, other than income taxes | 439 | 449 | 914 | 926 | ||
TOTAL OPERATING EXPENSES | 1,823 | 2,050 | 4,149 | 4,611 | ||
OPERATING INCOME | 460 | 386 | 1,143 | 1,030 | ||
OTHER INCOME (DEDUCTIONS) | ||||||
Investment and other income | 2 | 1 | 3 | 8 | ||
Allowance for equity funds used during construction | 1 | 1 | 2 | 1 | ||
Other deductions | (5) | (5) | (6) | (7) | ||
TOTAL OTHER INCOME (DEDUCTIONS) | (2) | (3) | (1) | 2 | ||
INCOME BEFORE INTEREST AND INCOME TAX EXPENSE | 458 | 383 | 1,142 | 1,032 | ||
INTEREST EXPENSE | ||||||
Interest on long-term debt | 141 | 130 | 282 | 258 | ||
Other interest | 5 | 3 | 9 | 7 | ||
Allowance for borrowed funds used during construction | — | — | (1) | (1) | ||
NET INTEREST EXPENSE | 146 | 133 | 290 | 264 | ||
INCOME BEFORE INCOME TAX EXPENSE | 312 | 250 | 852 | 768 | ||
INCOME TAX EXPENSE | 101 | 78 | 293 | 262 | ||
NET INCOME FOR COMMON STOCK | $211 | $172 | $559 | $506 |
For The Three Months Ended June 30, | For the Six Months Ended June 30, | ||||
2015 | 2014 | 2015 | 2014 | ||
(Millions of Dollars) | |||||
NET INCOME | $211 | $172 | $559 | $506 | |
OTHER COMPREHENSIVE INCOME, NET OF TAXES | |||||
Pension and other postretirement benefit plan liability adjustments, net of taxes | 1 | — | 1 | 1 | |
TOTAL OTHER COMPREHENSIVE INCOME, NET OF TAXES | 1 | — | 1 | 1 | |
COMPREHENSIVE INCOME | $212 | $172 | $560 | $507 |
For the Six Months Ended June 30, | ||||
2015 | 2014 | |||
(Millions of Dollars) | ||||
OPERATING ACTIVITIES | ||||
Net income | $559 | $506 | ||
PRINCIPAL NON-CASH CHARGES/(CREDITS) TO INCOME | ||||
Depreciation and amortization | 511 | 486 | ||
Deferred income taxes | 135 | 135 | ||
Rate case amortization and accruals | (32) | 55 | ||
Common equity component of allowance for funds used during construction | (2) | (2) | ||
Other non-cash items (net) | (10) | (17) | ||
CHANGES IN ASSETS AND LIABILITIES | ||||
Accounts receivable – customers, less allowance for uncollectibles | 53 | 44 | ||
Materials and supplies, including fuel oil and gas in storage | 42 | 37 | ||
Other receivables and other current assets | 11 | (93) | ||
Accounts receivable from affiliated companies | (4) | — | ||
Prepayments | 18 | 13 | ||
Accounts payable | (101) | (71) | ||
Pensions and retiree benefits obligations (net) | 360 | 382 | ||
Pensions and retiree benefits contributions | (406) | (405) | ||
Superfund and environmental remediation costs (net) | 14 | 17 | ||
Accrued taxes | (1) | (240) | ||
Accrued taxes to affiliated companies | (10) | — | ||
Accrued interest | (1) | 12 | ||
Deferred charges, noncurrent assets and other regulatory assets | (22) | (86) | ||
Deferred credits and other regulatory liabilities | 119 | 142 | ||
Other current and noncurrent liabilities | (31) | (33) | ||
NET CASH FLOWS FROM OPERATING ACTIVITIES | 1,202 | 882 | ||
INVESTING ACTIVITIES | ||||
Utility construction expenditures | (1,108) | (1,007) | ||
Cost of removal less salvage | (101) | (97) | ||
NET CASH FLOWS USED IN INVESTING ACTIVITIES | (1,209) | (1,104) | ||
FINANCING ACTIVITIES | ||||
Net issuance of short-term debt | 545 | 272 | ||
Issuance of long-term debt | — | 850 | ||
Retirement of long-term debt | — | (475) | ||
Debt issuance costs | (1) | (6) | ||
Dividend to parent | (516) | (356) | ||
NET CASH FLOWS FROM FINANCING ACTIVITIES | 28 | 285 | ||
CASH AND TEMPORARY CASH INVESTMENTS: | ||||
NET CHANGE FOR THE PERIOD | 21 | 63 | ||
BALANCE AT BEGINNING OF PERIOD | 645 | 633 | ||
BALANCE AT END OF PERIOD | $666 | $696 | ||
Supplemental disclosure of cash flow information | ||||
SUPPLEMENTAL DISCLOSURE OF CASH INFORMATION | ||||
Cash paid during the period for: | ||||
Interest | $277 | $248 | ||
Income taxes | $160 | $392 | ||
SUPPLEMENTAL DISCLOSURE OF NON-CASH INFORMATION | ||||
Construction expenditures in accounts payable | $151 | $119 |
June 30, 2015 | December 31, 2014 | |
(Millions of Dollars) | ||
ASSETS | ||
CURRENT ASSETS | ||
Cash and temporary cash investments | $666 | $645 |
Special deposits | 2 | 2 |
Accounts receivable – customers, less allowance for uncollectible accounts of $86 and $90 in 2015 and 2014, respectively | 1,011 | 1,064 |
Other receivables, less allowance for uncollectible accounts of $8 in 2015 and 2014 | 56 | 71 |
Accrued unbilled revenue | 329 | 384 |
Accounts receivable from affiliated companies | 136 | 132 |
Fuel oil, gas in storage, materials and supplies, at average cost | 270 | 312 |
Prepayments | 108 | 126 |
Regulatory assets | 60 | 132 |
Deferred tax assets | 144 | 94 |
Other current assets | 157 | 158 |
TOTAL CURRENT ASSETS | 2,939 | 3,120 |
INVESTMENTS | 296 | 271 |
UTILITY PLANT AT ORIGINAL COST | ||
Electric | 24,219 | 23,599 |
Gas | 5,679 | 5,469 |
Steam | 2,288 | 2,251 |
General | 2,310 | 2,265 |
TOTAL | 34,496 | 33,584 |
Less: Accumulated depreciation | 7,161 | 6,970 |
Net | 27,335 | 26,614 |
Construction work in progress | 935 | 971 |
NET UTILITY PLANT | 28,270 | 27,585 |
NON-UTILITY PROPERTY | ||
Non-utility property, less accumulated depreciation of $25 in 2015 and 2014 | 5 | 5 |
NET PLANT | 28,275 | 27,590 |
OTHER NONCURRENT ASSETS | ||
Regulatory assets | 8,011 | 8,481 |
Other deferred charges and noncurrent assets | 180 | 175 |
TOTAL OTHER NONCURRENT ASSETS | 8,191 | 8,656 |
TOTAL ASSETS | $39,701 | $39,637 |
June 30, 2015 | December 31, 2014 | ||
(Millions of Dollars) | |||
LIABILITIES AND SHAREHOLDER’S EQUITY | |||
CURRENT LIABILITIES | |||
Long-term debt due within one year | $350 | $350 | |
Notes payable | 995 | 450 | |
Accounts payable | 657 | 802 | |
Accounts payable to affiliated companies | 28 | 23 | |
Customer deposits | 333 | 330 | |
Accrued taxes | 45 | 46 | |
Accrued taxes to affiliated companies | — | 10 | |
Accrued interest | 116 | 117 | |
Accrued wages | 93 | 84 | |
Fair value of derivative liabilities | 23 | 48 | |
Regulatory liabilities | 107 | 142 | |
Other current liabilities | 381 | 415 | |
TOTAL CURRENT LIABILITIES | 3,128 | 2,817 | |
NONCURRENT LIABILITIES | |||
Provision for injuries and damages | 180 | 176 | |
Pensions and retiree benefits | 3,011 | 3,493 | |
Superfund and other environmental costs | 656 | 666 | |
Asset retirement obligations | 189 | 185 | |
Fair value of derivative liabilities | 19 | 10 | |
Deferred income taxes and investment tax credits | 8,516 | 8,257 | |
Regulatory liabilities | 1,772 | 1,837 | |
Other deferred credits and noncurrent liabilities | 133 | 144 | |
TOTAL NONCURRENT LIABILITIES | 14,476 | 14,768 | |
LONG-TERM DEBT | 10,865 | 10,864 | |
COMMON SHAREHOLDER’S EQUITY (See Statement of Shareholder’s Equity) | 11,232 | 11,188 | |
TOTAL LIABILITIES AND SHAREHOLDER’S EQUITY | $39,701 | $39,637 |
Common Stock | Additional Paid-In Capital | Retained Earnings | Repurchased Con Edison Stock | Capital Stock Expense | Accumulated Other Comprehensive Income/(Loss) | Total | |||||
(Millions of Dollars/Except Share Data) | Shares | Amount | |||||||||
BALANCE AS OF DECEMBER 31, 2013 | 235,488,094 | $589 | $4,234 | $7,053 | $(962) | $(61) | $(6) | $10,847 | |||
Net income | 334 | 334 | |||||||||
Common stock dividend to parent | (178) | (178) | |||||||||
Other comprehensive income | 1 | 1 | |||||||||
BALANCE AS OF MARCH 31, 2014 | 235,488,094 | $589 | $4,234 | $7,209 | $(962) | $(61) | $(5) | $11,004 | |||
Net income | 172 | 172 | |||||||||
Common stock dividend to parent | (178) | (178) | |||||||||
Other comprehensive income | — | — | |||||||||
BALANCE AS OF JUNE 30, 2014 | 235,488,094 | $589 | $4,234 | $7,203 | $(962) | $(61) | $(5) | $10,998 | |||
BALANCE AS OF DECEMBER 31, 2014 | 235,488,094 | $589 | $4,234 | $7,399 | $(962) | $(61) | $(11) | $11,188 | |||
Net income | 348 | 348 | |||||||||
Common stock dividend to parent | (338) | (338) | |||||||||
Other comprehensive income | — | — | |||||||||
BALANCE AS OF MARCH 31, 2015 | 235,488,094 | $589 | $4,234 | $7,409 | $(962) | $(61) | $(11) | $11,198 | |||
Net income | 211 | 211 | |||||||||
Common stock dividend to parent | (178) | (178) | |||||||||
Other comprehensive income | 1 | 1 | |||||||||
BALANCE AS OF JUNE 30, 2015 | 235,488,094 | $589 | $4,234 | $7,442 | $(962) | $(61) | $(10) | $11,232 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||
(Millions of Dollars, except per share amounts/Shares in Millions) | 2015 | 2014 | 2015 | 2014 |
Net income for common stock | $219 | $212 | $589 | $574 |
Weighted average common shares outstanding – basic | 292.9 | 292.9 | 292.9 | 292.9 |
Add: Incremental shares attributable to effect of potentially dilutive securities | 1.1 | 1.1 | 1.0 | 1.1 |
Adjusted weighted average common shares outstanding – diluted | 294.0 | 294.0 | 293.9 | 294.0 |
Net Income for common stock per common share – basic | $0.75 | $0.73 | $2.01 | $1.96 |
Net Income for common stock per common share – diluted | $0.74 | $0.72 | $2.01 | $1.95 |
For the Three Months Ended June 30, | |||||
Con Edison | CECONY | ||||
(Millions of Dollars) | 2015 | 2014 | 2015 | 2014 | |
Beginning balance, accumulated OCI, net of taxes (a) | $(40) | $(21) | $(11) | $(5) | |
Amounts reclassified from accumulated OCI related to pension plan liabilities net of tax of $(1) for Con Edison in 2015 and 2014 (a)(b) | 1 | 1 | 1 | — | |
Current period OCI, net of taxes | 1 | 1 | 1 | — | |
Ending balance, accumulated OCI, net of taxes | $(39) | $(20) | $(10) | $(5) |
For the Six Months Ended June 30, | ||||||
Con Edison | CECONY | |||||
(Millions of Dollars) | 2015 | 2014 | 2015 | 2014 | ||
Beginning balance, accumulated OCI, net of taxes (a) | $(45) | $(25) | $(11) | $(6) | ||
OCI before reclassifications, net of tax of $(2) and $(1) for Con Edison in 2015 and 2014, respectively | 3 | 2 | — | — | ||
Amounts reclassified from accumulated OCI related to pension plan liabilities, net of tax of $(2) for Con Edison in 2015 and 2014 (a)(b) | 3 | 3 | 1 | 1 | ||
Current period OCI, net of taxes | 6 | 5 | 1 | 1 | ||
Ending balance, accumulated OCI, net of taxes | $(39) | $(20) | $(10) | $(5) |
(a) | Tax reclassified from accumulated OCI is reported in the income tax expense line item of the income statement. |
(b) | For the portion of unrecognized pension and other postretirement benefit costs relating to the regulated Utilities, costs are recorded into, and amortized out of, regulatory assets instead of OCI. The net actuarial losses and prior service costs recognized during the period are included in the computation of total periodic pension and other postretirement benefit cost. See Notes E and F. |
Effective period | January 2016 – December 2016 |
Base rate changes | None (a) |
Amortizations to income of net regulatory (assets) and liabilities | Additional $123 million of net regulatory liabilities (b). |
Other revenue sources | Continued retention of $90 million of annual transmission congestion revenues. |
Revenue decoupling mechanism | Continued reconciliation of actual electric delivery revenues to those authorized in the rate plan. |
Recoverable energy costs | Continued current rate recovery of purchased power and fuel costs (c). |
Negative revenue adjustments | Continued potential penalties (up to $400 million annually) if certain performance targets are not met. |
Cost reconciliations | Continued reconciliation of expenses for pension and other postretirement benefits, variable-rate tax-exempt debt, major storms, property taxes (d), municipal infrastructure support, the impact of new laws and environmental remediation to amounts reflected in rates. |
Net utility plant reconciliations | Target levels reflected in rates are as follows: Transmission and distribution: $17,929 million Storm hardening: $268 million Other: $2,069 million |
Average rate base | $18,282 million |
Weighted average cost of capital (after-tax) | 6.91 percent |
Authorized return on common equity | 9.0 percent |
Earnings sharing | Most earnings above an annual earnings threshold of 9.6 percent are to be applied to reduce regulatory assets for environmental remediation and other costs. |
Cost of long-term debt | 5.09 percent |
Common equity ratio | 48 percent |
(a) | The impact of 2014 and 2015 base rate changes under the current electric rate plan will continue to be deferred. $249 million of annual revenues collected from electric customers will continue to be subject to potential refund following NYSPSC staff review of certain costs. Revenues will continue to include $21 million as funding for major storm reserve. |
(b) | Annual amortization of $107 million of the regulatory asset for deferred Superstorm Sandy and other major storm costs will continue. The costs recoverable from customers will be reduced by $4 million. The costs will no longer be subject to NYSPSC staff review and the recovery of the costs will no longer be subject to refund. |
(c) | For transmission service provided pursuant to the open access transmission tariff of PJM Interconnection LLC (PJM), unless and until changed by the NYSPSC, the company will recover all charges incurred associated with the transmission service. In January 2014, PJM submitted to the Federal Energy Regulatory Commission (FERC) a request that would substantially increase the charges for the transmission service. FERC has granted the request and rejected CECONY’s protests. CECONY is challenging the FERC’s decision. |
(d) | Deferrals for property taxes will continue to be limited to 90 percent of the difference from amounts reflected in rates, subject to an annual maximum for the remaining difference of not more than a 10 basis point impact on return on common equity. |
Effective period | November 2015 - October 2017 |
Base rate changes | Yr. 1 - $9.3 million Yr. 2 - $8.8 million |
Amortizations to income of net regulatory (assets) and liabilities (a) | Yr. 1 - $(8.5) million Yr. 2 - $(9.4) million |
Revenue decoupling mechanism | Continued reconciliation of actual electric delivery revenues to those authorized in the rate plan. |
Recoverable energy costs | Continued current rate recovery of purchased power costs. |
Negative revenue adjustments | Potential penalties (up to $4 million annually) if certain performance targets are not met. |
Cost reconciliations | Continued reconciliation of expenses for pension and other postretirement benefits, property taxes, the impact of new laws and environmental remediation to amounts reflected in rates. |
Net utility plant reconciliations (b) | Target levels reflected in rates are: Yr. 1 - $928 million Yr. 2 - $970 million |
Average rate base | Yr. 1 - $763 million Yr. 2 - $805 million |
Weighted average cost of capital (after-tax) | Yr. 1 - 7.10 percent Yr. 2 - 7.06 percent |
Authorized return on common equity | 9.0 percent |
Earnings sharing | Most earnings above an annual earnings threshold of 9.6 percent are to be applied to reduce regulatory assets. |
Cost of long-term debt | Yr. 1 - 5.42 percent Yr. 2 - 5.35 percent |
Common equity ratio | 48 percent |
(a) | The Joint Proposal provides that the company should be allowed to recover from customers $59.3 million of its regulatory asset for deferred storm costs over a five-year period, including $11.85 million in each of years 1 and 2, $1 million of the regulatory asset for such costs will not be recovered from customers, and all outstanding issues related to Superstorm Sandy and other past major storms prior to November 2014 are resolved. The Joint Proposal also provides that a total of approximately $4 million of regulatory assets for property tax and interest rate reconciliations will not be recovered from customers. Amounts that will not be recovered from customers were charged-off in June 2015. |
(b) | Excludes electric advanced metering infrastructure as to which the company will be required to defer as a regulatory liability the revenue requirement impact of the amount, if any, by which actual average net utility plant balances are less than amounts reflected in rates: $1 million in year 1 and $9 million in year 2. |
Effective period | November 2015 - October 2018 |
Base rate changes (a) | Yr. 1 - $27.5 million Yr. 2 - $4.4 million Yr. 3 - $6.7 million |
Amortizations to income of net regulatory (assets) and liabilities (b) | Yr. 1 - $(1.7) million Yr. 2 - $(2.1) million Yr. 3 - $(2.5) million |
Revenue decoupling mechanism | Continued reconciliation of actual gas delivery revenues to those authorized in the rate plan, including through weather normalization clause. |
Recoverable energy costs | Continued current rate recovery of purchased gas costs. |
Negative revenue adjustments | Potential penalties (up to $3.7 million in Yr. 1, $4.7 million in Yr. 2 and $5.8 million in Yr. 3) if certain performance targets are not met. |
Cost reconciliations | Continued reconciliation of expenses for pension and other postretirement benefits, property taxes, the impact of new laws and environmental remediation to amounts reflected in rates. |
Net utility plant reconciliations (c) | Target levels reflected in rates are: Yr. 1 - $492 million Yr. 2 - $518 million Yr. 3 - $546 million |
Average rate base | Yr. 1 - $366 million Yr. 2 - $391 million Yr. 3 - $417 million |
Weighted average cost of capital (after-tax) | Yr. 1 - 7.10 percent Yr. 2 - 7.06 percent Yr. 3 - 7.06 percent |
Authorized return on common equity | 9.0 percent |
Earnings sharing | Most earnings above an annual earnings threshold of 9.6 percent are to be applied to reduce regulatory assets. |
Cost of long-term debt | Yr. 1 - 5.42 percent Yr. 2 - 5.35 percent Yr. 3 - 5.35 percent |
Common equity ratio | 48 percent |
(a) | The base rate changes may be implemented, at the NYSPSC’s option, with increases of $16.4 million in each of years 1 and 2 and an increase of $5.8 million, together with a surcharge of $10.6 million, in year 3. |
(b) | Reflects that the company will not recover from customers a total of approximately $14 million of regulatory assets for property tax and interest rate reconciliations. Amounts that will not be recovered from customers were charged-off in June 2015. |
(c) | Excludes gas advanced metering infrastructure as to which the company will be required to defer as a regulatory liability the revenue requirement impact of the amount, if any, by which actual average net utility plant balances are less than amounts reflected in rates: $0.5 million in year 1, $4.2 million in year 2 and $7.2 million in year 3. |
Con Edison | CECONY | ||||||||
(Millions of Dollars) | 2015 | 2014 | 2015 | 2014 | |||||
Regulatory assets | |||||||||
Unrecognized pension and other postretirement costs | $4,400 | $4,846 | $4,191 | $4,609 | |||||
Future income tax | 2,326 | 2,273 | 2,216 | 2,166 | |||||
Environmental remediation costs | 897 | 925 | 796 | 820 | |||||
Deferred storm costs | 254 | 319 | 167 | 224 | |||||
Revenue taxes | 227 | 219 | 215 | 208 | |||||
Pension and other postretirement benefits deferrals | 54 | 66 | 27 | 42 | |||||
Net electric deferrals | 54 | 63 | 53 | 63 | |||||
Unamortized loss on reacquired debt | 54 | 57 | 51 | 55 | |||||
Deferred derivative losses | 46 | 25 | 41 | 23 | |||||
Surcharge for New York State assessment | 40 | 99 | 38 | 92 | |||||
O&R property tax reconciliation | 40 | 36 | — | — | |||||
Preferred stock redemption | 27 | 27 | 27 | 27 | |||||
O&R transition bond charges | 24 | 27 | — | — | |||||
Workers’ compensation | 10 | 8 | 10 | 8 | |||||
Recoverable energy costs | — | 19 | — | 17 | |||||
Other | 193 | 147 | 179 | 127 | |||||
Regulatory assets – noncurrent | 8,646 | 9,156 | 8,011 | 8,481 | |||||
Deferred derivative losses | 65 | 97 | 60 | 92 | |||||
Future income tax | 8 | 10 | — | — | |||||
Recoverable energy costs | 2 | 41 | — | 40 | |||||
Regulatory assets – current | 75 | 148 | 60 | 132 | |||||
Total Regulatory Assets | $8,721 | $9,304 | $8,071 | $8,613 | |||||
Regulatory liabilities | |||||||||
Allowance for cost of removal less salvage | $620 | $598 | $518 | $499 | |||||
Property tax reconciliation | 300 | 295 | 300 | 295 | |||||
Base rate change deferrals | 146 | 155 | 146 | 155 | |||||
Net unbilled revenue deferrals | 116 | 138 | 116 | 138 | |||||
Prudence proceeding | 103 | 105 | 103 | 105 | |||||
Pension and other postretirement benefit deferrals | 83 | 46 | 59 | 37 | |||||
Variable-rate tax-exempt debt – cost rate reconciliation | 80 | 78 | 69 | 78 | |||||
Property tax refunds | 65 | 87 | 65 | 87 | |||||
New York State income tax rate change | 64 | 62 | 61 | 59 | |||||
Carrying charges on repair allowance and bonus depreciation | 52 | 58 | 50 | 57 | |||||
World Trade Center settlement proceeds | 31 | 41 | 31 | 41 | |||||
Net utility plant reconciliations | 22 | 21 | 23 | 20 | |||||
Earnings sharing – electric | 21 | 19 | 21 | 18 | |||||
Unrecognized other postretirement costs | 17 | — | 17 | — | |||||
Other | 227 | 290 | 193 | 248 | |||||
Regulatory liabilities – noncurrent | 1,947 | 1,993 | 1,772 | 1,837 | |||||
Refundable energy costs | 72 | 128 | 39 | 84 | |||||
Revenue decoupling mechanism | 42 | 30 | 41 | 30 | |||||
Future income tax | 22 | 24 | 21 | 24 | |||||
Deferred derivative gains | 6 | 5 | 6 | 4 | |||||
Regulatory liabilities – current | 142 | 187 | 107 | 142 | |||||
Total Regulatory Liabilities | $2,089 | $2,180 | $1,879 | $1,979 |
(Millions of Dollars) | 2015 | 2014 | ||
Long-Term Debt (including current portion) | Carrying Amount | Fair Value | Carrying Amount | Fair Value |
Con Edison | $12,385 | $13,498 | $12,191 | $13,998 |
CECONY | $11,215 | $12,206 | $11,214 | $12,846 |
For the Three Months Ended June 30, | |||||
Con Edison | CECONY | ||||
(Millions of Dollars) | 2015 | 2014 | 2015 | 2014 | |
Service cost – including administrative expenses | $74 | $57 | $70 | $53 | |
Interest cost on projected benefit obligation | 144 | 143 | 135 | 134 | |
Expected return on plan assets | (222) | (208) | (210) | (198) | |
Recognition of net actuarial loss | 194 | 154 | 183 | 146 | |
Recognition of prior service costs | 1 | 1 | — | 1 | |
NET PERIODIC BENEFIT COST | $191 | $147 | $178 | $136 | |
Amortization of regulatory asset | 1 | 1 | 1 | 1 | |
TOTAL PERIODIC BENEFIT COST | $192 | $148 | $179 | $137 | |
Cost capitalized | (76) | (57) | (72) | (54) | |
Reconciliation to rate level | (17) | 30 | (18) | 28 | |
Cost charged to operating expenses | $99 | $121 | $89 | $111 |
For the Six Months Ended June 30, | ||||
Con Edison | CECONY | |||
(Millions of Dollars) | 2015 | 2014 | 2015 | 2014 |
Service cost – including administrative expenses | $149 | $113 | $139 | $106 |
Interest cost on projected benefit obligation | 287 | 286 | 269 | 268 |
Expected return on plan assets | (443) | (416) | (420) | (395) |
Recognition of net actuarial loss | 388 | 309 | 367 | 293 |
Recognition of prior service costs | 2 | 2 | 1 | 1 |
NET PERIODIC BENEFIT COST | $383 | $294 | $356 | $273 |
Amortization of regulatory asset | 1 | 1 | 1 | 1 |
TOTAL PERIODIC BENEFIT COST | $384 | $295 | $357 | $274 |
Cost capitalized | (144) | (109) | (137) | (103) |
Reconciliation to rate level | (42) | 57 | (42) | 51 |
Cost charged to operating expenses | $198 | $243 | $178 | $222 |
For the Three Months Ended June 30, | ||||
Con Edison | CECONY | |||
(Millions of Dollars) | 2015 | 2014 | 2015 | 2014 |
Service cost | $5 | $5 | $4 | $4 |
Interest cost on accumulated other postretirement benefit obligation | 13 | 15 | 11 | 13 |
Expected return on plan assets | (20) | (19) | (17) | (17) |
Recognition of net actuarial loss | 8 | 14 | 7 | 13 |
Recognition of prior service cost | (5) | (5) | (4) | (4) |
TOTAL PERIODIC OTHER POSTRETIREMENT BENEFIT COST | $1 | $10 | $1 | $9 |
Cost capitalized | (1) | (4) | (1) | (4) |
Reconciliation to rate level | 4 | 3 | 2 | 1 |
Cost charged to operating expenses | $4 | $9 | $2 | $6 |
For the Six Months Ended June 30, | ||||
Con Edison | CECONY | |||
(Millions of Dollars) | 2015 | 2014 | 2015 | 2014 |
Service cost | $10 | $10 | $7 | $7 |
Interest cost on accumulated other postretirement benefit obligation | 25 | 30 | 22 | 26 |
Expected return on plan assets | (39) | (38) | (34) | (34) |
Recognition of net actuarial loss | 16 | 28 | 14 | 26 |
Recognition of prior service cost | (10) | (10) | (7) | (7) |
TOTAL PERIODIC OTHER POSTRETIREMENT BENEFIT COST | $2 | $20 | $2 | $18 |
Cost capitalized | (1) | (8) | (1) | (7) |
Reconciliation to rate level | 8 | 6 | 3 | 1 |
Cost charged to operating expenses | $9 | $18 | $4 | $12 |
Con Edison | CECONY | |||
(Millions of Dollars) | 2015 | 2014 | 2015 | 2014 |
Accrued Liabilities: | ||||
Manufactured gas plant sites | $671 | $684 | $576 | $587 |
Other Superfund Sites | 80 | 80 | 80 | 79 |
Total | $751 | $764 | $656 | $666 |
Regulatory assets | $897 | $925 | $796 | $820 |
For the Three Months Ended June 30, | ||||||||
Con Edison | CECONY | |||||||
(Millions of Dollars) | 2015 | 2014 | 2015 | 2014 | ||||
Remediation costs incurred | $8 | $5 | $7 | $2 | ||||
Insurance recoveries received | — | — | — | — |
For the Six Months Ended June 30, | ||||||
Con Edison | CECONY | |||||
(Millions of Dollars) | 2015 | 2014 | 2015 | 2014 | ||
Remediation costs incurred | $15 | $14 | $12 | $10 | ||
Insurance recoveries received (a) | — | 5 | — | 5 |
Con Edison | CECONY | |||
(Millions of Dollars) | 2015 | 2014 | 2015 | 2014 |
Accrued liability – asbestos suits | $8 | $8 | $7 | $7 |
Regulatory assets – asbestos suits | $8 | $8 | $7 | $7 |
Accrued liability – workers’ compensation | $86 | $83 | $81 | $78 |
Regulatory assets – workers’ compensation | $10 | $8 | $10 | $8 |
Guarantee Type | 0 – 3 years | 4 – 10 years | > 10 years | Total | ||||
(Millions of Dollars) | ||||||||
NY Transco | $1,359 | $— | $— | $1,359 | ||||
Energy transactions | 739 | 42 | 90 | 871 | ||||
Renewable electric production projects | 165 | 50 | 54 | 269 | ||||
Other | 30 | — | — | 30 | ||||
Total | $2,293 | $92 | $144 | $2,529 |
For the Three Months Ended June 30, | ||||||||||||||||||
Operating revenues | Inter-segment revenues | Depreciation and amortization | Operating income | |||||||||||||||
(Millions of Dollars) | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||
CECONY | ||||||||||||||||||
Electric | $1,879 | $1,978 | $5 | $4 | $201 | $195 | $422 | $347 | ||||||||||
Gas | 308 | 360 | 1 | 2 | 35 | 33 | 54 | 54 | ||||||||||
Steam | 96 | 98 | 21 | 21 | 18 | 19 | (16) | (15) | ||||||||||
Consolidation adjustments | — | — | (27) | (27) | — | — | — | — | ||||||||||
Total CECONY | $2,283 | $2,436 | $— | $— | $254 | $247 | $460 | $386 | ||||||||||
O&R | ||||||||||||||||||
Electric | $162 | $157 | $— | $— | $13 | $11 | $16 | $25 | ||||||||||
Gas | 16 | 35 | — | — | 4 | 4 | (18) | (5) | ||||||||||
Total O&R | $178 | $192 | $— | $— | $17 | $15 | $(2) | $20 | ||||||||||
Competitive energy businesses | $328 | $284 | $(1) | $(1) | $6 | $4 | $13 | $48 | ||||||||||
Other (a) | (1) | (1) | 1 | 1 | (1) | (1) | 1 | 1 | ||||||||||
Total Con Edison | $2,788 | $2,911 | $— | $— | $276 | $265 | $472 | $455 |
(a) | Parent company and consolidation adjustments. Other does not represent a business segment. |
For the Six Months Ended June 30, | ||||||||||||||||||
Operating revenues | Inter-segment revenues | Depreciation and amortization | Operating income | |||||||||||||||
(Millions of Dollars) | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||
CECONY | ||||||||||||||||||
Electric | $3,858 | $4,053 | $9 | $8 | $403 | $383 | $700 | $605 | ||||||||||
Gas | 963 | 1,149 | 3 | 3 | 70 | 64 | 294 | 287 | ||||||||||
Steam | 471 | 439 | 43 | 41 | 38 | 39 | 149 | 138 | ||||||||||
Consolidation adjustments | — | — | (55) | (52) | — | — | — | — | ||||||||||
Total CECONY | $5,292 | $5,641 | $— | $— | $511 | $486 | $1,143 | $1,030 | ||||||||||
O&R | ||||||||||||||||||
Electric | $318 | $320 | $— | $— | $25 | $21 | $34 | $37 | ||||||||||
Gas | 93 | 128 | — | — | 9 | 8 | 9 | 22 | ||||||||||
Total O&R | $411 | $448 | $— | $— | $34 | $29 | $43 | $59 | ||||||||||
Competitive energy businesses | $702 | $612 | $(4) | $1 | $11 | $11 | $10 | $50 | ||||||||||
Other (a) | (1) | (1) | 4 | (1) | (1) | — | 2 | 1 | ||||||||||
Total Con Edison | $6,404 | $6,700 | $— | $— | $555 | $526 | $1,198 | $1,140 |
(a) | Parent company and consolidation adjustments. Other does not represent a business segment. |
(Millions of Dollars) | 2015 | 2014 | |||||||||
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 | $70 | $(50) | $20 | (b) | $111 | $(67) | $44 | (b) | |||
Current - assets held for sale (c) | 55 | (53) | 2 | — | — | — | |||||
Noncurrent | 24 | (21) | 3 | 34 | (23) | 11 | |||||
Total fair value of derivative assets | $149 | $(124) | $25 | $145 | $(90) | $55 | |||||
Fair value of derivative liabilities | |||||||||||
Current | $(110) | $78 | $(32) | $(242) | $139 | $(103) | |||||
Current - liabilities held for sale (c) | (100) | 43 | (57) | — | — | — | |||||
Noncurrent | (66) | 42 | (24) | (66) | 91 | 25 | |||||
Noncurrent - liabilities held for sale (c) | (35) | 10 | (25) | — | — | — | |||||
Total fair value of derivative liabilities | $(311) | $173 | $(138) | $(308) | $230 | $(78) | |||||
Net fair value derivative assets/(liabilities) | $(162) | $49 | $(113) | (b) | $(163) | $140 | $(23) | (b) | |||
CECONY | |||||||||||
Fair value of derivative assets | |||||||||||
Current | $46 | $(36) | $10 | (b) | $26 | $(15) | $11 | (b) | |||
Noncurrent | 19 | (17) | 2 | 22 | (20) | 2 | |||||
Total fair value of derivative assets | $65 | $(53) | $12 | $48 | $(35) | $13 | |||||
Fair value of derivative liabilities | |||||||||||
Current | $(86) | $63 | $(23) | $(96) | $48 | $(48) | |||||
Noncurrent | (57) | 38 | (19) | (42) | 32 | (10) | |||||
Total fair value of derivative liabilities | $(143) | $101 | $(42) | $(138) | $80 | $(58) | |||||
Net fair value derivative assets/(liabilities) | $(78) | $48 | $(30) | (b) | $(90) | $45 | $(45) | (b) |
(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 June 30, 2015 and December 31, 2014, margin deposits for Con Edison ($22 million and $27 million, respectively) and CECONY ($21 million and $25 million, respectively) were classified as derivative assets on the consolidated balance sheet, but not included in the table. Margin is collateral, typically cash, that the holder of a derivative instrument is required to deposit in order to transact on an exchange and to cover its potential losses with its broker or the exchange. |
(c) | Amounts represent derivative assets and liabilities included in assets and liabilities held for sale on the consolidated balance sheet (see Note O). |
For the Three Months Ended June 30, | ||||||||||||
Con Edison | CECONY | |||||||||||
(Millions of Dollars) | Balance Sheet Location | 2015 | 2014 | 2015 | 2014 | |||||||
Pre-tax gains/(losses) deferred in accordance with accounting rules for regulated operations: | ||||||||||||
Current | Deferred derivative gains | $(2) | $1 | $(1) | $1 | |||||||
Noncurrent | Deferred derivative gains | — | 2 | — | 2 | |||||||
Total deferred gains/(losses) | $(2) | $3 | $(1) | $3 | ||||||||
Current | Deferred derivative losses | $(11) | $(2) | $(10) | $(2) | |||||||
Current | Recoverable energy costs | (40) | (7) | (36) | (6) | |||||||
Noncurrent | Deferred derivative losses | (2) | (3) | (1) | (3) | |||||||
Total deferred gains/(losses) | $(53) | $(12) | $(47) | $(11) | ||||||||
Net deferred gains/(losses) | $(55) | $(9) | $(48) | $(8) | ||||||||
Income Statement Location | ||||||||||||
Pre-tax gain/(loss) recognized in income | ||||||||||||
Purchased power expense | $(50) | (a) | $(13) | (b) | $— | $— | ||||||
Gas purchased for resale | (26) | (32) | — | — | ||||||||
Non-utility revenue | (27) | (a) | 14 | (b) | — | — | ||||||
Total pre-tax gain/(loss) recognized in income | $(103) | $(31) | $— | $— |
(a) | For the three months ended June 30, 2015, Con Edison recorded unrealized pre-tax gains and losses in non-utility operating revenue ($1 million gain) and purchased power expense ($17 million loss). |
(b) | For the three months ended June 30, 2014, Con Edison recorded in purchased power expense an unrealized pre-tax loss of $5 million. |
For the Six Months Ended June 30, | |||||||||||||
Con Edison | CECONY | ||||||||||||
(Millions of Dollars) | Balance Sheet Location | 2015 | 2014 | 2015 | 2014 | ||||||||
Pre-tax gains/(losses) deferred in accordance with accounting rules for regulated operations: | |||||||||||||
Current | Deferred derivative gains | $1 | $31 | $2 | $25 | ||||||||
Noncurrent | Deferred derivative gains | — | 7 | — | 6 | ||||||||
Total deferred gains/(losses) | $1 | $38 | $2 | $31 | |||||||||
Current | Deferred derivative losses | $32 | $15 | $32 | $15 | ||||||||
Current | Recoverable energy costs | (39) | 87 | (38) | 70 | ||||||||
Noncurrent | Deferred derivative losses | (21) | — | (18) | (1) | ||||||||
Total deferred gains/(losses) | $(28) | $102 | $(24) | $84 | |||||||||
Net deferred gains/(losses) | $(27) | $140 | $(22) | $115 | |||||||||
Income Statement Location | |||||||||||||
Pre-tax gain/(loss) recognized in income | |||||||||||||
Purchased power expense | $(28) | (a) | $161 | (b) | $— | $— | |||||||
Gas purchased for resale | (69) | (46) | — | — | |||||||||
Non-utility revenue | 15 | (a) | (10) | (b) | — | — | |||||||
Total pre-tax gain/(loss) recognized in income | $(82) | $105 | $— | $— |
(a) | For the six months ended June 30, 2015, Con Edison recorded unrealized pre-tax gains and losses in non-utility operating revenue ($3 million loss) and purchased power expense ($5 million loss). |
(b) | For the six months ended June 30, 2014, Con Edison recorded in purchased power expense an unrealized pre-tax gain of $15 million. |
Electric Energy (MWHs) (a)(b) | Capacity (MWs)(a) | Natural Gas (Dt) (a)(b) | Refined Fuels (gallons) | |||||
Con Edison (c) | 20,982,862 | 7,324 | 61,343,892 | 5,502,000 | ||||
CECONY | 6,941,125 | 2,400 | 55,640,000 | 5,502,000 |
(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. |
(c) | Includes 12,801,647 MWHs for electric energy, 6,635 MWs for capacity and 1,397,036 Dt for natural gas derivative transactions that are held for sale. |
(Millions of Dollars) | Con Edison (a) | CECONY (a) | |||
Aggregate fair value – net liabilities | $60 | $41 | |||
Collateral posted | 5 | — | |||
Additional collateral (b) (downgrade one level from current ratings) | 5 | — | |||
Additional collateral (b) (downgrade to below investment grade from current ratings) | 85 | (c) | 56 | (c) |
(a) | Non-derivative transactions for the purchase and sale of electricity and gas and qualifying derivative instruments, which 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 and the competitive energy businesses were no longer extended unsecured credit for such purchases, the Companies would be required to post additional collateral of $2 million at June 30, 2015. 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 liabilities 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 June 30, 2015, if Con Edison had been downgraded to below investment grade, it would have been required to post additional collateral for such derivative instruments of $7 million. |
• | Level 1 – Consists of assets or liabilities whose value is based on unadjusted quoted prices in active markets at the measurement date. An active market is one in which transactions for assets or liabilities occur with sufficient frequency and volume to provide pricing information on an ongoing basis. This category includes contracts traded on active exchange markets valued using unadjusted prices quoted directly from the exchange. |
• | Level 2 – Consists of assets or liabilities valued using industry standard models and based on prices, other than quoted prices within Level 1, that are either directly or indirectly observable as of the measurement date. The industry standard models consider observable assumptions including time value, volatility factors and current market and contractual prices for the underlying commodities, in addition to other economic measures. This category includes contracts traded on active exchanges or in over-the-counter markets priced with industry standard models. |
• | Level 3 – Consists of assets or liabilities whose fair value is estimated based on internally developed models or methodologies using inputs that are generally less readily observable and supported by little, if any, market activity at the measurement date. Unobservable inputs are developed based on the best available information and subject to cost benefit constraints. This category includes contracts priced using models that are internally developed and contracts placed in illiquid markets. It also includes contracts that expire after the period of time for which quoted prices are available and internal models are used to determine a significant portion of the value. |
2015 | 2014 | |||||||||||||||||||
(Millions of Dollars) | Level 1 | Level 2 | Level 3 | Netting Adjustment (e) | Total | Level 1 | Level 2 | Level 3 | Netting Adjustment (e) | Total | ||||||||||
Con Edison | ||||||||||||||||||||
Derivative assets: | ||||||||||||||||||||
Commodity (a)(b)(c) | $1 | $24 | $15 | $4 | $44 | $3 | $78 | $28 | $(27) | $82 | ||||||||||
Commodity held for sale (f) | — | 45 | 2 | (45) | 2 | — | — | — | — | — | ||||||||||
Other (a)(b)(d) | 187 | 117 | — | — | 304 | 163 | 116 | — | — | 279 | ||||||||||
Total assets | $188 | $186 | $17 | $(41) | $350 | $166 | $194 | $28 | $(27) | $361 | ||||||||||
Derivative liabilities: | ||||||||||||||||||||
Commodity (a)(b)(c) | $11 | $111 | $— | $(67) | $55 | $18 | $246 | $8 | $(194) | $78 | ||||||||||
Commodity held for sale (f) | 1 | 122 | 4 | (45) | 82 | — | — | — | — | — | ||||||||||
Total liabilities | $12 | $233 | $4 | $(112) | $137 | $18 | $246 | $8 | $(194) | $78 | ||||||||||
CECONY | ||||||||||||||||||||
Derivative assets: | ||||||||||||||||||||
Commodity (a)(b)(c) | $1 | $8 | $11 | $13 | $33 | $1 | $3 | $13 | $21 | $38 | ||||||||||
Other (a)(b)(d) | 179 | 107 | — | — | 286 | 155 | 106 | — | — | 261 | ||||||||||
Total assets | $180 | $115 | $11 | $13 | $319 | $156 | $109 | $13 | $21 | $299 | ||||||||||
Derivative liabilities: | ||||||||||||||||||||
Commodity (a)(b)(c) | $10 | $88 | $— | $(56) | $42 | $16 | $91 | $— | $(49) | $58 |
(a) | The Companies’ policy is to review the fair value hierarchy and recognize transfers into and transfers out of the levels at the end of each reporting period. There were no transfers between levels 1, 2 and 3 for the six months ended June 30, 2015 and for the year ended December 31, 2014. |
(b) | Level 2 assets and liabilities include investments held in the deferred compensation plan and/or non-qualified retirement plans, exchange-traded contracts where there is insufficient market liquidity to warrant inclusion in Level 1, certain over-the-counter derivative instruments for electricity, refined products and natural gas. Derivative instruments classified as Level 2 are valued using industry standard models that incorporate corroborated observable inputs; such as pricing services or prices from similar instruments that trade in liquid markets, time value and volatility factors. |
(c) | The accounting rules for fair value measurements and disclosures require consideration of the impact of nonperformance risk (including credit risk) from a market participant perspective in the measurement of the fair value of assets and liabilities. At June 30, 2015 and December 31, 2014, the Companies determined that nonperformance risk would have no material impact on their financial position or results of operations. |
(d) | Other assets are comprised of assets such as life insurance contracts within the deferred compensation plan and non-qualified retirement plans. |
(e) | Amounts represent the impact of legally-enforceable master netting agreements that allow the Companies to net gain and loss positions and cash collateral held or placed with the same counterparties. |
(f) | Amounts represent derivative assets and liabilities included in Assets and Liabilities held for sale on the consolidated balance sheet (see Note O). |
Fair Value of Level 3 at June 30, 2015 | Valuation Techniques | Unobservable Inputs | Range | |
(Millions of Dollars) | ||||
Con Edison – Commodity | ||||
Electricity | $(2) | Discounted Cash Flow | Forward energy prices (a) | $18.25-$118.25 per MWH |
Discounted Cash Flow | Forward capacity prices (a) | $3.70-$15.26 per kW-month | ||
Transmission Congestion Contracts/Financial Transmission Rights | 14 | Discounted Cash Flow | Discount to adjust auction prices for inter-zonal forward price curves (b) | 40.8%-57.9% |
Discount to adjust auction prices for historical monthly realized settlements (b) | 37.5%-60.8% | |||
Inter-zonal forward price curves adjusted for historical zonal losses (b) | $(2.57)-$6.62 per MWH | |||
Natural gas | 1 | Discounted Cash Flow | Forward gas prices (a) | $(1.56)-$10.00 per Dt |
Total Con Edison—Commodity | $13 | |||
CECONY—Commodity | ||||
Transmission Congestion Contracts | $11 | Discounted Cash Flow | Discount to adjust auction prices for inter-zonal forward price curves (b) | 40.8%-57.9% |
Discount to adjust auction prices for historical monthly realized settlements (b) | 37.5%-60.8% |
(a) | Generally, increases/(decreases) in this input in isolation would result in a higher/(lower) fair value measurement. |
(b) | Generally, increases/(decreases) in this input in isolation would result in a lower/(higher) fair value measurement. |
For the Three Months Ended June 30, | ||||||
Con Edison | CECONY | |||||
(Millions of Dollars) | 2015 | 2014 | 2015 | 2014 | ||
Beginning balance as of April 1, | $11 | $24 | $12 | $13 | ||
Included in earnings | (3) | (2) | (2) | (2) | ||
Included in regulatory assets and liabilities | — | 3 | — | 3 | ||
Purchases | 5 | 3 | 2 | 2 | ||
Settlements | — | (1) | (1) | (2) | ||
Ending balance as of June 30, | $13 | $27 | $11 | $14 |
For the Six Months Ended June 30, | ||||
Con Edison | CECONY | |||
(Millions of Dollars) | 2015 | 2014 | 2015 | 2014 |
Beginning balance as of January 1, | $20 | $9 | $13 | $6 |
Included in earnings | (15) | 49 | (5) | 9 |
Included in regulatory assets and liabilities | 1 | 7 | 1 | 7 |
Purchases | 8 | 11 | 4 | 9 |
Settlements | (1) | (49) | (2) | (17) |
Ending balance as of June 30, | $13 | $27 | $11 | $14 |
Project Name (a) | Generating Capacity Owned (MWs AC) | Power Purchase Agreement Term in Years | Year of Initial Investment | Location | Maximum Exposure to Loss (Millions of Dollars) (c) |
Copper Mountain Solar 3 | 128 | 20 | 2014 | Nevada | $187 |
Mesquite Solar 1 | 83 | 20 | 2013 | Arizona | 105 |
Copper Mountain Solar 2 | 75 | 25 | 2013 | Nevada | 88 |
California Solar | 55 | 25 | 2012 | California | 73 |
Broken Bow II | 37 | 25 | 2014 | Nebraska | 56 |
Texas Solar 4 | 32 | 25 | 2014 | Texas | 49 |
Pilesgrove | 9 | n/a (b) | 2010 | New Jersey | 26 |
(a) | With the exception of Texas Solar 4, Con Edison’s ownership interest is 50 percent and these projects are accounted for using the equity method of accounting. Con Edison is not the primary beneficiary since the power to direct the activities that most significantly impact the economics of the entities are shared equally between Con Edison Development and third parties. Con Edison’s ownership interest in Texas Solar 4 is 80 percent and is consolidated in the financial statements. Con Edison is the primary beneficiary since the power to direct the activities that most significantly impact the economics of Texas Solar 4 is held by Con Edison Development. The maximum exposure for Texas Solar 4 is the net assets of the investment offset by a $9 million noncontrolling interest. |
(b) | Pilesgrove has 3-5 year Solar Renewable Energy Credit hedges in place. |
(c) | For investments accounted for under the equity method, maximum exposure is equal to the carrying value of the investment on the consolidated balance sheet. For consolidated investments, maximum exposure is equal to the net assets of the investment on the consolidated balance sheet less any applicable minority interest. Con Edison did not provide any financial or other support during the year that was not previously contractually required. |
(Millions of Dollars) | 2015 |
Accounts receivable | $82 |
Accrued unbilled revenue | 76 |
Other current assets | 3 |
Derivative assets | 2 |
Total current assets | 163 |
Non-utility property | 4 |
TOTAL ASSETS HELD FOR SALE | $167 |
Derivative liabilities - current | $57 |
Accounts payable | 9 |
Total current liabilities | 66 |
Derivative liabilities - noncurrent | 25 |
TOTAL LIABILITIES HELD FOR SALE | $91 |
Three Months Ended June 30, 2015 | Six Months Ended June 30, 2015 | At June 30, 2015 | |||||||||||||||
(Millions of Dollars, except percentages) | Operating Revenues | Net Income for Common Stock | Operating Revenues | Net Income for Common Stock | Assets | ||||||||||||
CECONY | $2,283 | 82 | % | $211 | 96 | % | $5,292 | 83 | % | $559 | 95 | % | $39,701 | 89 | % | ||
O&R | 178 | 6 | % | (7) | (3 | )% | 411 | 6 | % | 16 | 3 | % | 2,683 | 6 | % | ||
Total Utilities | 2,461 | 88 | % | 204 | 93 | % | 5,703 | 89 | % | 575 | 98 | % | 42,384 | 95 | % | ||
Con Edison Solutions (a)(b) | 290 | 10 | % | 6 | 3 | % | 620 | 10 | % | — | — | % | 353 | 1 | % | ||
Con Edison Energy (a)(b) | 24 | 1 | % | 1 | — | % | 55 | 1 | % | 5 | 1 | % | 171 | — | % | ||
Con Edison Development | 13 | 1 | % | 10 | 5 | % | 23 | — | % | 14 | 2 | % | 1,105 | 2 | % | ||
Other (c) | — | — | % | (2) | (1 | )% | 3 | — | % | (5) | (1 | )% | 738 | 2 | % | ||
Total Con Edison | $2,788 | 100 | % | $219 | 100 | % | $6,404 | 100 | % | $589 | 100 | % | $44,751 | 100 | % |
(a) | Net income from the competitive energy businesses for the three and six months ended June 30, 2015 includes $(9) million and $(5) million, respectively, of net after-tax mark-to-market gains/(losses) (Con Edison Solutions, $(10) million and $(3) million and Con Edison Energy, $1 million and $(2) million). |
(b) | Operating revenues and net income from the competitive energy businesses for the three and six months ended June 30, 2015 includes $277 million and $594 million, and $8 million and $3 million, respectively, related to their retail electric supply business. Assets at June 30, 2015 include assets classified as held for sale of $167 million (see Note O to the Second Quarter Financial Statements). |
(c) | Other includes parent company and consolidation adjustments. |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | |||||||||
(Millions of Dollars, except per share amounts) | Net Income for Common Stock | Earnings per Share | Net Income for Common Stock | Earnings per Share | ||||||||||||
CECONY | $211 | $172 | $0.72 | $0.58 | $559 | $506 | $1.91 | $1.73 | ||||||||
O&R | (7) | 8 | (0.02 | ) | 0.03 | 16 | 29 | 0.05 | 0.10 | |||||||
Competitive energy businesses (a)(b) | 17 | 33 | 0.06 | 0.12 | 19 | 42 | 0.07 | 0.14 | ||||||||
Other (c) | (2) | (1) | (0.01 | ) | — | (5) | (3) | (0.02 | ) | (0.01 | ) | |||||
Con Edison (d) | $219 | $212 | $0.75 | $0.73 | $589 | $574 | $2.01 | $1.96 |
(a) | Includes $9 million or $0.03 a share and $3 million or $0.01 a share of net after-tax mark-to-market losses for the three months ended June 30, 2015 and 2014, respectively, and $(5) million or $(0.02) a share and $9 million or $0.03 a share of net after-tax mark-to-market gains/(losses) for the six months ended June 30, 2015 and 2014, respectively. Includes an after-tax gain on sale of solar electric production projects of $26 million or $0.09 a share for the three and six months ended June 30, 2014. Also includes an after-tax benefit of $7 million or $0.02 a share relating to the lease in/lease out (LILO) transactions terminated in 2013 for the six months ended June 30, 2014. |
(b) | Includes $8 million or $0.03 a share and $(2) million or $(0.01) a share of net income/(loss) for the three months ended June 30, 2015 and 2014, respectively, and $3 million or $0.01 a share and $(4) million or $(0.01) a share of net income/(loss) for the six months ended June 30, 2015 and 2014, respectively, related to the retail electric supply business. See Note O to the Second Quarter Financial Statements. These amounts reflect net after-tax mark-to-market gains/(losses) of $(10) million or $(0.03) a share and $(3) million or $(0.01) a share for the three months ended June 30, 2015 and 2014, respectively, and $(3) million or $(0.01) a share and $9 million or $0.03 a share for the six months ended June 30, 2015 and 2014, respectively. |
(c) | Other includes parent company and consolidation adjustments. |
(d) | Earnings per share on a diluted basis were $0.74 a share and $0.72 a share for the three months ended June 30, 2015 and 2014, respectively, and $2.01 a share and $1.95 a share for the six months ended June 30, 2015 and 2014, respectively. |
Three Months Variation | Six Months Variation | ||||
(Millions of Dollars, except per share amounts) | Earnings per Share Variation | Net Income for Common Stock Variation | Earnings per Share Variation | Net Income for Common Stock Variation | |
CECONY (a) | |||||
Rate plans, primarily to recover increases in certain costs | $0.14 | $40 | $0.19 | $57 | |
Other operations and maintenance expenses | 0.02 | 7 | 0.07 | 20 | |
Depreciation and amortization | (0.02) | (5) | (0.05) | (15) | |
Net interest expense | (0.02) | (8) | (0.05) | (16) | |
Other | 0.02 | 5 | 0.02 | 7 | |
Total CECONY | 0.14 | 39 | 0.18 | 53 | |
O&R (a) | |||||
Rate plans (b) | (0.02) | (7) | (0.01) | (2) | |
Other operations and maintenance expenses | (0.02) | (5) | (0.03) | (7) | |
Other | (0.01) | (3) | (0.01) | (4) | |
Total O&R | (0.05) | (15) | (0.05) | (13) | |
Competitive energy businesses | |||||
Operating revenues less energy costs | 0.03 | 9 | 0.03 | 10 | |
Gain on sale of solar electric production projects | (0.09) | (26) | (0.09) | (26) | |
Other operations and maintenance expenses | (0.01) | (2) | (0.02) | (7) | |
Net interest expense | — | 1 | (0.02) | (7) | |
Other | 0.01 | 2 | 0.03 | 7 | |
Total competitive energy businesses (c) | (0.06) | (16) | (0.07) | (23) | |
Other, including parent company expenses | (0.01) | (1) | (0.01) | (2) | |
Total variations | $0.02 | $7 | $0.05 | $15 |
(a) | Under the revenue decoupling mechanisms in the Utilities’ New York electric and gas rate plans and the weather-normalization clause applicable to their gas businesses, revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved. Under the rate plans, pension and other postretirement costs and certain other costs are reconciled to amounts reflected in rates for such costs. In general, the Utilities recover on a current basis the fuel, gas purchased for resale and purchased power costs they incur in supplying energy to their full-service customers. Accordingly, such costs do not generally affect the Companies’ results of operations. |
(b) | These variations primarily reflect the charge-off of certain regulatory assets for the three and six months ended June 30, 2015 ($11 million after-tax or $0.04 a share). See “Rate Plans - O&R New York - Electric and Gas” in Note B to the Second Quarter Financial Statements. |
(c) | These variations include the net mark-to-market effects and the impact of the LILO transactions shown in note (a) in the Results of Operations table above. |
Three Months Ended June 30, | Six Months Ended June 30, | |||
(Millions of Dollars) | 2015 | 2014 | 2015 | 2014 |
CECONY | ||||
Operations | $348 | $342 | $690 | $710 |
Pensions and other postretirement benefits | 91 | 117 | 182 | 234 |
Health care and other benefits | 38 | 39 | 78 | 75 |
Regulatory fees and assessments (a) | 126 | 114 | 280 | 238 |
Other | 84 | 87 | 160 | 167 |
Total CECONY | 687 | 699 | 1,390 | 1,424 |
O&R | 85 | 76 | 167 | 154 |
Competitive energy businesses | 31 | 27 | 61 | 50 |
Other (b) | (1) | (1) | (2) | (1) |
Total other operations and maintenance expenses | $802 | $801 | $1,616 | $1,627 |
(a) | Includes Demand Side Management, System Benefit Charges and Public Service Law 18A assessments which are collected in revenues. |
(b) | Includes parent company and consolidation adjustments. |
CECONY | O&R | Competitive Energy Businesses | Other (a) | Con Edison (b) | ||||||||||||||||
(Millions of Dollars) | Increases (Decreases) Amount | Increases (Decreases) Percent | Increases (Decreases) Amount | Increases (Decreases) Percent | Increases (Decreases) Amount | Increases (Decreases) Percent | Increases (Decreases) Amount | Increases (Decreases) Percent | Increases (Decreases) Amount | Increases (Decreases) Percent | ||||||||||
Operating revenues | $(153) | (6.3 | )% | $(14) | (7.3 | )% | $44 | 15.5 | % | $— | — | $(123) | (4.2 | )% | ||||||
Purchased power | (159) | (30.8 | ) | 2 | 3.8 | 34 | 15.9 | — | — | (123) | (15.7 | ) | ||||||||
Fuel | (3) | (8.8 | ) | — | — | — | — | — | — | (3) | (8.8 | ) | ||||||||
Gas purchased for resale | (50) | (48.1 | ) | (6) | (40.0 | ) | (6) | (18.8 | ) | — | — | (62) | (41.1 | ) | ||||||
Other operations and maintenance | (12) | (1.7 | ) | 9 | 11.8 | 4 | 14.8 | — | — | 1 | 0.1 | |||||||||
Depreciation and amortization | 7 | 2.8 | 2 | 13.3 | 2 | 50.0 | — | — | 11 | 4.2 | ||||||||||
Taxes, other than income taxes | (10) | (2.2 | ) | 1 | 7.1 | — | — | — | — | (9) | (1.9 | ) | ||||||||
Gain on sale of solar electric production projects | — | — | — | — | (45) | — | — | — | (45) | — | ||||||||||
Operating income | 74 | 19.2 | (22) | Large | (35) | (72.9 | ) | — | — | 17 | 3.7 | |||||||||
Other income less deductions | 1 | 33.3 | (2) | Large | 1 | 9.1 | 1 | Large | 1 | 11.1 | ||||||||||
Net interest expense | 13 | 9.8 | 1 | 12.5 | (1) | (50.0 | ) | (1) | (14.3 | )% | 12 | 8.0 | ||||||||
Income before income tax expense | 62 | 24.8 | (25) | Large | (33) | (57.9 | ) | 2 | 28.6 | 6 | 1.9 | |||||||||
Income tax expense | 23 | 29.5 | (10) | Large | (17) | (70.8 | ) | 3 | 50.0 | (1) | (1.0 | ) | ||||||||
Net income for common stock | $39 | 22.7 | % | $(15) | Large | $(16) | (48.5 | )% | $(1) | Large | $7 | 3.3 | % |
(a) | Includes parent company and consolidation adjustments. |
(b) | Represents the consolidated financial results of Con Edison and its businesses. |
Three Months Ended June 30, 2015 | Three Months Ended June 30, 2014 | ||||||||||||||
(Millions of Dollars) | Electric | Gas | Steam | 2015 Total | Electric | Gas | Steam | 2014 Total | 2015-2014 Variation | ||||||
Operating revenues | $1,879 | $308 | $96 | $2,283 | $1,978 | $360 | $98 | $2,436 | $(153) | ||||||
Purchased power | 350 | — | 8 | 358 | 505 | — | 12 | 517 | (159) | ||||||
Fuel | 15 | — | 16 | 31 | 20 | — | 14 | 34 | (3) | ||||||
Gas purchased for resale | — | 54 | — | 54 | — | 104 | — | 104 | (50) | ||||||
Other operations and maintenance | 535 | 107 | 45 | 687 | 546 | 107 | 46 | 699 | (12) | ||||||
Depreciation and amortization | 201 | 35 | 18 | 254 | 195 | 33 | 19 | 247 | 7 | ||||||
Taxes, other than income taxes | 356 | 58 | 25 | 439 | 365 | 62 | 22 | 449 | (10) | ||||||
Operating income | $422 | $54 | $(16) | $460 | $347 | $54 | $(15) | $386 | $74 |
Three Months Ended | |||
(Millions of Dollars) | June 30, 2015 | June 30, 2014 | Variation |
Operating revenues | $1,879 | $1,978 | $(99) |
Purchased power | 350 | 505 | (155) |
Fuel | 15 | 20 | (5) |
Other operations and maintenance | 535 | 546 | (11) |
Depreciation and amortization | 201 | 195 | 6 |
Taxes, other than income taxes | 356 | 365 | (9) |
Electric operating income | $422 | $347 | $75 |
Millions of kWhs Delivered | Revenues in Millions (a) | |||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||
Description | June 30, 2015 | June 30, 2014 | Variation | Percent Variation | June 30, 2015 | June 30, 2014 | Variation | Percent Variation | ||||||
Residential/Religious (b) | 2,207 | 2,091 | 116 | 5.5 | % | $578 | $595 | $(17) | (2.9 | )% | ||||
Commercial/Industrial | 2,246 | 2,285 | (39 | ) | (1.7 | ) | 448 | 472 | (24) | (5.1 | ) | |||
Energy choice customers | 6,116 | 6,099 | 17 | 0.3 | 618 | 600 | 18 | 3.0 | ||||||
NYPA, Municipal Agency and other sales | 2,374 | 2,453 | (79 | ) | (3.2 | ) | 141 | 154 | (13) | (8.4 | ) | |||
Other operating revenues (c) | — | — | — | — | 94 | 157 | (63) | (40.1 | ) | |||||
Total | 12,943 | 12,928 | 15 | 0.1 | % | (d) | $1,879 | $1,978 | $(99) | (5.0 | )% |
(a) | Revenues from electric sales are subject to a revenue decoupling mechanism, as a result of which delivery revenues generally are not affected by changes in delivery volumes from levels assumed when rates were approved. |
(b) | “Residential/Religious” generally includes single-family dwellings, individual apartments in multi-family dwellings, religious organizations and certain other not-for-profit organizations. |
(c) | Other electric operating revenues generally reflect changes in regulatory assets and liabilities in accordance with the revenue decoupling mechanism and other provisions of the company’s rate plans. |
(d) | After adjusting for variations, principally weather and billing days, electric delivery volumes in CECONY’s service area decreased 1.2 percent in the three months ended June 30, 2015 compared with the 2014 period. |
Three Months Ended | |||||
(Millions of Dollars) | June 30, 2015 | June 30, 2014 | Variation | ||
Operating revenues | $308 | $360 | $(52) | ||
Gas purchased for resale | 54 | 104 | (50) | ||
Other operations and maintenance | 107 | 107 | — | ||
Depreciation and amortization | 35 | 33 | 2 | ||
Taxes, other than income taxes | 58 | 62 | (4) | ||
Gas operating income | $54 | $54 | $— |
Thousands of Dt Delivered | Revenues in Millions (a) | ||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||
Description | June 30, 2015 | June 30, 2014 | Variation | Percent Variation | June 30, 2015 | June 30, 2014 | Variation | Percent Variation | |||||||
Residential | 9,048 | 8,779 | 269 | 3.1 | % | $146 | $165 | $(19) | (11.5 | )% | |||||
General | 6,125 | 5,936 | 189 | 3.2 | 57 | 75 | (18) | (24.0 | ) | ||||||
Firm transportation | 14,640 | 14,341 | 299 | 2.1 | 97 | 102 | (5) | (4.9 | ) | ||||||
Total firm sales and transportation | 29,813 | 29,056 | 757 | 2.6 | (b) | 300 | 342 | (42) | (12.3 | ) | |||||
Interruptible sales (c) | 1,321 | 3,536 | (2,215 | ) | (62.6 | ) | 11 | 33 | (22) | (66.7 | ) | ||||
NYPA | 10,035 | 13,402 | (3,367 | ) | (25.1 | ) | 1 | 1 | — | — | |||||
Generation plants | 19,217 | 18,575 | 642 | 3.5 | 7 | 7 | — | — | |||||||
Other | 4,116 | 6,398 | (2,282 | ) | (35.7 | ) | 7 | 13 | (6) | (46.2 | ) | ||||
Other operating revenues (d) | — | — | — | — | (18) | (36) | 18 | 50.0 | |||||||
Total | 64,502 | 70,967 | (6,465 | ) | (9.1 | )% | $308 | $360 | $(52) | (14.4 | )% |
(a) | Revenues from gas sales are subject to a weather normalization clause and a revenue decoupling mechanism as a result of which delivery revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved. Delivery revenues, however, are affected by changes in volumes attributable to changes in the average number of customers. |
(b) | After adjusting for variations, principally weather and billing days, firm gas sales and transportation volumes in the company’s service area increased 5.2 percent in the three months ended June 30, 2015 compared with the 2014 period reflecting primarily increased volumes attributable to additional customers that have converted from oil-to-gas as heating fuel for their buildings. |
(c) | Includes 1,635 thousands of Dt for the 2014 period, which is also reflected in firm transportation and other. |
(d) | Other gas operating revenues generally reflect changes in regulatory assets and liabilities in accordance with the company’s rate plans. |
Three Months Ended | |||
(Millions of Dollars) | June 30, 2015 | June 30, 2014 | Variation |
Operating revenues | $96 | $98 | $(2) |
Purchased power | 8 | 12 | (4) |
Fuel | 16 | 14 | 2 |
Other operations and maintenance | 45 | 46 | (1) |
Depreciation and amortization | 18 | 19 | (1) |
Taxes, other than income taxes | 25 | 22 | 3 |
Steam operating income | $(16) | $(15) | $(1) |
Millions of Pounds Delivered | Revenues in Millions | |||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||
Description | June 30, 2015 | June 30, 2014 | Variation | Percent Variation | June 30, 2015 | June 30, 2014 | Variation | Percent Variation | ||||||||
General | 68 | 76 | (8 | ) | (10.5 | )% | $4 | $4 | $— | — | ||||||
Apartment house | 1,121 | 1,210 | (89 | ) | (7.4 | ) | 29 | 31 | (2) | (6.5 | )% | |||||
Annual power | 2,607 | 2,761 | (154 | ) | (5.6 | ) | 71 | 73 | (2) | (2.7 | ) | |||||
Other operating revenues (a) | — | — | — | — | (8) | (10) | 2 | 20.0 | ||||||||
Total | 3,796 | 4,047 | (251 | ) | (6.2 | )% | (b) | $96 | $98 | $(2) | (2.0 | )% |
(a) | Other steam operating revenues generally reflect changes in regulatory assets and liabilities in accordance with the company’s rate plans. |
(b) | After adjusting for variations, principally weather and billing days, steam sales and deliveries decreased 6.4 percent in three months ended June 30, 2015 compared with the 2014 period. |
Three Months Ended June 30, 2015 | Three Months Ended June 30, 2014 | ||||||||||
(Millions of Dollars) | Electric | Gas | 2015 Total | Electric | Gas | 2014 Total | 2015-2014 Variation | ||||
Operating revenues | $162 | $16 | $178 | $157 | $35 | $192 | $(14) | ||||
Purchased power | 54 | — | 54 | 52 | — | 52 | 2 | ||||
Gas purchased for resale | — | 9 | 9 | — | 15 | 15 | (6) | ||||
Other operations and maintenance | 68 | 17 | 85 | 59 | 17 | 76 | 9 | ||||
Depreciation and amortization | 13 | 4 | 17 | 11 | 4 | 15 | 2 | ||||
Taxes, other than income taxes | 11 | 4 | 15 | 10 | 4 | 14 | 1 | ||||
Operating income | $16 | $(18) | $(2) | $25 | $(5) | $20 | $(22) |
Three Months Ended | |||
(Millions of Dollars) | June 30, 2015 | June 30, 2014 | Variation |
Operating revenues | $162 | $157 | $5 |
Purchased power | 54 | 52 | 2 |
Other operations and maintenance | 68 | 59 | 9 |
Depreciation and amortization | 13 | 11 | 2 |
Taxes, other than income taxes | 11 | 10 | 1 |
Electric operating income | $16 | $25 | $(9) |
Millions of kWhs Delivered | Revenues in Millions (a) | ||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||
Description | June 30, 2015 | June 30, 2014 | Variation | Percent Variation | June 30, 2015 | June 30, 2014 | Variation | Percent Variation | |||||||
Residential/Religious (b) | 364 | 328 | 36 | 11.0 | % | $74 | $65 | $9 | 13.8 | % | |||||
Commercial/Industrial | 195 | 196 | (1 | ) | (0.5 | ) | 33 | 33 | — | — | |||||
Energy choice customers | 784 | 796 | (12 | ) | (1.5 | ) | 50 | 47 | 3 | 6.4 | |||||
Public authorities | 25 | 24 | 1 | 4.2 | 2 | 2 | — | — | |||||||
Other operating revenues (c) | — | — | — | — | 3 | 10 | (7) | (70.0 | ) | ||||||
Total | 1,368 | 1,344 | 24 | 1.8 | % | (d) | $162 | $157 | $5 | 3.2 | % |
(a) | O&R’s New York electric delivery revenues are subject to a revenue decoupling mechanism, as a result of which delivery revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved. O&R’s electric sales in New Jersey and Pennsylvania are not subject to a decoupling mechanism, and as a result, changes in such volumes do impact revenues. |
(b) | “Residential/Religious” generally includes single-family dwellings, individual apartments in multi-family dwellings, religious organizations and certain other not-for-profit organizations. |
(c) | Other electric operating revenues generally reflect changes in regulatory assets and liabilities in accordance with the company’s electric rate plan. |
(d) | After adjusting for weather and other variations, electric delivery volumes in O&R’s service area increased 0.4 percent in the three months ended June 30, 2015 compared with the 2014 period. |
Three Months Ended | ||||
(Millions of Dollars) | June 30, 2015 | June 30, 2014 | Variation | |
Operating revenues | $16 | $35 | $(19) | |
Gas purchased for resale | 9 | 15 | (6) | |
Other operations and maintenance | 17 | 17 | — | |
Depreciation and amortization | 4 | 4 | — | |
Taxes, other than income taxes | 4 | 4 | — | |
Gas operating income | $(18) | $(5) | $(13) |
Thousands of Dt Delivered | Revenues in Millions (a) | ||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||
Description | June 30, 2015 | June 30, 2014 | Variation | Percent Variation | June 30, 2015 | June 30, 2014 | Variation | Percent Variation | |||||||||
Residential | 929 | 991 | (62 | ) | (6.3 | )% | $12 | $16 | $(4) | (25.0 | )% | ||||||
General | 207 | 205 | 2 | 1.0 | 2 | 3 | (1) | (33.3 | ) | ||||||||
Firm transportation | 1,668 | 1,774 | (106 | ) | (6.0 | ) | 12 | 13 | (1) | (7.7 | ) | ||||||
Total firm sales and transportation | 2,804 | 2,970 | (166 | ) | (5.6 | ) | (b) | 26 | 32 | (6) | (18.8 | ) | |||||
Interruptible sales | 1,048 | 1,064 | (16 | ) | (1.5 | ) | 1 | — | 1 | Large | |||||||
Generation plants | 1 | 22 | (21 | ) | (95.5 | ) | — | — | — | — | |||||||
Other | 119 | 131 | (12 | ) | (9.2 | ) | — | — | — | — | |||||||
Other gas revenues | — | — | — | — | (11) | 3 | (14) | Large | |||||||||
Total | 3,972 | 4,187 | (215 | ) | (5.1 | )% | $16 | $35 | $(19) | (54.3 | )% |
(a) | Revenues from New York gas sales are subject to a weather normalization clause and a revenue decoupling mechanism as a result of which delivery revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved. Delivery revenues, however, are affected by changes in volumes attributable to changes in the average number of customers. |
(b) | After adjusting for weather and other variations, total firm sales and transportation volumes increased 3.5 percent in three months ended June 30, 2015 compared with the 2014 period. |
Three Months Ended | |||||
(Millions of Dollars) | June 30, 2015 | June 30, 2014 | Variation | ||
Operating revenues | $328 | $284 | $44 | ||
Purchased power | 248 | 214 | 34 | ||
Gas purchased for resale | 26 | 32 | (6) | ||
Other operations and maintenance | 31 | 27 | 4 | ||
Depreciation and amortization | 6 | 4 | 2 | ||
Taxes, other than income taxes | 4 | 4 | — | ||
(Gain) on sale of solar electric production projects | — | (45) | 45 | ||
Operating income | $13 | $48 | $(35) |
CECONY | O&R | Competitive Energy Businesses | Other (a) | Con Edison (b) | |||||||||||||||||
(Millions of Dollars) | Increases (Decreases) Amount | Increases (Decreases) Percent | Increases (Decreases) Amount | Increases (Decreases) Percent | Increases (Decreases) Amount | Increases (Decreases) Percent | Increases (Decreases) Amount | Increases (Decreases) Percent | Increases (Decreases) Amount | Increases (Decreases) Percent | |||||||||||
Operating revenues | $(349) | (6.2 | )% | $(37) | (8.3 | )% | $90 | 14.7 | % | $— | — | $(296) | (4.4 | )% | |||||||
Purchased power | (238) | (21.0 | ) | (15) | (12.5 | ) | 51 | 10.4 | — | — | (202) | (11.6 | ) | ||||||||
Fuel | (4) | (2.1 | ) | — | — | — | — | — | — | (4) | (2.1 | ) | |||||||||
Gas purchased for resale | (199) | (44.1 | ) | (24) | (43.6 | ) | 22 | 47.8 | 1 | Large | (200) | (36.3 | ) | ||||||||
Other operations and maintenance | (34) | (2.4 | ) | 13 | 8.4 | 11 | 22.0 | (1) | Large | (11) | (0.7 | ) | |||||||||
Depreciation and amortization | 25 | 5.1 | 5 | 17.2 | — | — | (1) | — | 29 | 5.5 | |||||||||||
Taxes, other than income taxes | (12) | (1.3 | ) | — | — | 1 | 11.1 | — | — | (11) | (1.1 | ) | |||||||||
Gain on sale of solar electric production projects | — | — | — | — | (45) | — | — | — | (45) | — | |||||||||||
Operating income | 113 | 11.0 | (16) | (27.1 | ) | (40) | (80.0 | ) | 1 | Large | 58 | 5.1 | |||||||||
Other income less deductions | (3) | Large | (2) | (66.7 | ) | 2 | 15.4 | (3) | Large | (6) | (30.0 | ) | |||||||||
Net interest expense | 26 | 9.8 | 1 | 5.9 | 12 | Large | (2) | (14.3 | )% | 37 | 12.9 | ||||||||||
Income before income tax expense | 84 | 10.9 | (19) | (42.2 | ) | (50) | (69.4 | ) | — | — | 15 | 1.7 | |||||||||
Income tax expense | 31 | 11.8 | (6) | (37.5 | ) | (27) | (90.0 | ) | 2 | 25.0 | — | — | |||||||||
Net income for common stock | $53 | 10.5 | % | $(13) | (44.8 | )% | $(23) | (54.8 | )% | $(2) | (66.7 | )% | $15 | 2.6 | % |
(a) | Includes parent company and consolidation adjustments. |
(b) | Represents the consolidated financial results of Con Edison and its businesses. |
Six Months Ended June 30, 2015 | Six Months Ended June 30, 2014 | ||||||||||||||
(Millions of Dollars) | Electric | Gas | Steam | 2015 Total | Electric | Gas | Steam | 2014 Total | 2015-2014 Variation | ||||||
Operating revenues | $3,858 | $963 | $471 | $5,292 | $4,053 | $1,149 | $439 | $5,641 | $(349) | ||||||
Purchased power | 876 | — | 21 | 897 | 1,103 | — | 32 | 1,135 | (238) | ||||||
Fuel | 72 | — | 113 | 185 | 112 | — | 77 | 189 | (4) | ||||||
Gas purchased for resale | — | 252 | — | 252 | — | 451 | — | 451 | (199) | ||||||
Other operations and maintenance | 1,079 | 217 | 94 | 1,390 | 1,116 | 211 | 97 | 1,424 | (34) | ||||||
Depreciation and amortization | 403 | 70 | 38 | 511 | 383 | 64 | 39 | 486 | 25 | ||||||
Taxes, other than income taxes | 728 | 130 | 56 | 914 | 734 | 136 | 56 | 926 | (12) | ||||||
Operating income | $700 | $294 | $149 | $1,143 | $605 | $287 | $138 | $1,030 | $113 |
Six Months Ended | |||
(Millions of Dollars) | June 30, 2015 | June 30, 2014 | Variation |
Operating revenues | $3,858 | $4,053 | $(195) |
Purchased power | 876 | 1,103 | (227) |
Fuel | 72 | 112 | (40) |
Other operations and maintenance | 1,079 | 1,116 | (37) |
Depreciation and amortization | 403 | 383 | 20 |
Taxes, other than income taxes | 728 | 734 | (6) |
Electric operating income | $700 | $605 | $95 |
Millions of kWhs Delivered | Revenues in Millions (a) | |||||||||||||
Six Months Ended | Six Months Ended | |||||||||||||
Description | June 30, 2015 | June 30, 2014 | Variation | Percent Variation | June 30, 2015 | June 30, 2014 | Variation | Percent Variation | ||||||
Residential/Religious (b) | 4,671 | 4,507 | 164 | 3.6 | % | $1,295 | $1,382 | $(87) | (6.3 | )% | ||||
Commercial/Industrial | 4,683 | 4,746 | (63 | ) | (1.3 | ) | 975 | 1,090 | (115) | (10.6 | ) | |||
Energy choice customers | 12,516 | 12,535 | (19 | ) | (0.2 | ) | 1,214 | 1,122 | 92 | 8.2 | ||||
NYPA, Municipal Agency and other sales | 4,957 | 5,036 | (79 | ) | (1.6 | ) | 269 | 287 | (18) | (6.3 | ) | |||
Other operating revenues (c) | — | — | — | — | 105 | 172 | (67) | (39.0 | ) | |||||
Total | 26,827 | 26,824 | 3 | — | % | (d) | $3,858 | $4,053 | $(195) | (4.8 | )% |
(a) | Revenues from electric sales are subject to a revenue decoupling mechanism, as a result of which delivery revenues generally are not affected by changes in delivery volumes from levels assumed when rates were approved. |
(b) | “Residential/Religious” generally includes single-family dwellings, individual apartments in multi-family dwellings, religious organizations and certain other not-for-profit organizations. |
(c) | Other electric operating revenues generally reflect changes in regulatory assets and liabilities in accordance with the revenue decoupling mechanism and other provisions of the company’s rate plans. |
(d) | After adjusting for variations, principally weather and billing days, electric delivery volumes in CECONY’s service area decreased 0.8 percent in six months ended June 30, 2015 compared with the 2014 period. |
Six Months Ended | |||
(Millions of Dollars) | June 30, 2015 | June 30, 2014 | Variation |
Operating revenues | $963 | $1,149 | $(186) |
Gas purchased for resale | 252 | 451 | (199) |
Other operations and maintenance | 217 | 211 | 6 |
Depreciation and amortization | 70 | 64 | 6 |
Taxes, other than income taxes | 130 | 136 | (6) |
Gas operating income | $294 | $287 | $7 |
Thousands of Dt Delivered | Revenues in Millions (a) | ||||||||||||||
Six Months Ended | Six Months Ended | ||||||||||||||
Description | June 30, 2015 | June 30, 2014 | Variation | Percent Variation | June 30, 2015 | June 30, 2014 | Variation | Percent Variation | |||||||
Residential | 34,762 | 31,805 | 2,957 | 9.3 | % | $449 | $528 | $(79) | (15.0 | )% | |||||
General | 19,545 | 18,624 | 921 | 4.9 | 181 | 241 | (60) | (24.9 | ) | ||||||
Firm transportation | 49,393 | 43,391 | 6,002 | 13.8 | 284 | 279 | 5 | 1.8 | |||||||
Total firm sales and transportation | 103,700 | 93,820 | 9,880 | 10.5 | (b) | 914 | 1,048 | (134) | (12.8 | ) | |||||
Interruptible sales (c) | 4,161 | 8,660 | (4,499 | ) | (52.0 | ) | 39 | 93 | (54) | (58.1 | ) | ||||
NYPA | 19,802 | 24,869 | (5,067 | ) | (20.4 | ) | 1 | 1 | — | — | |||||
Generation plants | 32,040 | 31,654 | 386 | 1.2 | 13 | 15 | (2) | (13.3 | ) | ||||||
Other | 11,773 | 13,740 | (1,967 | ) | (14.3 | ) | 15 | 25 | (10) | (40.0 | ) | ||||
Other operating revenues (d) | — | — | — | — | (19) | (33) | 14 | 42.4 | |||||||
Total | 171,476 | 172,743 | (1,267 | ) | (0.7 | )% | $963 | $1,149 | $(186) | (16.2 | )% |
(a) | Revenues from gas sales are subject to a weather normalization clause and a revenue decoupling mechanism as a result of which delivery revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved. Delivery revenues, however, are affected by changes in volumes attributable to changes in the average number of customers. |
(b) | After adjusting for variations, principally weather and billing days, firm gas sales and transportation volumes in the company’s service area increased 8.4 percent in the six months ended June 30, 2015 compared with the 2014 period reflecting primarily increased volumes attributable to additional customers that have converted from oil-to-gas as heating fuel for their buildings. |
(c) | Includes 1,043 and 5,668 thousands of Dt for 2015 and 2014 periods, respectively, which are also reflected in firm transportation and other. |
(d) | Other gas operating revenues generally reflect changes in regulatory assets and liabilities in accordance with the company’s rate plans. |
Six Months Ended | ||||
(Millions of Dollars) | June 30, 2015 | June 30, 2014 | Variation | |
Operating revenues | $471 | $439 | $32 | |
Purchased power | 21 | 32 | (11) | |
Fuel | 113 | 77 | 36 | |
Other operations and maintenance | 94 | 97 | (3) | |
Depreciation and amortization | 38 | 39 | (1) | |
Taxes, other than income taxes | 56 | 56 | — | |
Steam operating income | $149 | $138 | $11 |
Millions of Pounds Delivered | Revenues in Millions | |||||||||||||||
Six Months Ended | Six Months Ended | |||||||||||||||
Description | June 30, 2015 | June 30, 2014 | Variation | Percent Variation | June 30, 2015 | June 30, 2014 | Variation | Percent Variation | ||||||||
General | 441 | 456 | (15 | ) | (3.3 | )% | $22 | $22 | $— | — | ||||||
Apartment house | 4,240 | 4,111 | 129 | 3.1 | 130 | 119 | 11 | 9.2 | % | |||||||
Annual power | 9,632 | 9,772 | (140 | ) | (1.4 | ) | 333 | 319 | 14 | 4.4 | ||||||
Other operating revenues (a) | — | — | — | — | (14) | (21) | 7 | 33.3 | ||||||||
Total | 14,313 | 14,339 | (26 | ) | (0.2 | )% | (b) | $471 | $439 | $32 | 7.3 | % |
(a) | Other steam operating revenues generally reflect changes in regulatory assets and liabilities in accordance with the company’s rate plans. |
(b) | After adjusting for variations, principally weather and billing days, steam sales and deliveries decreased 3.0 percent in six months ended June 30, 2015 compared with the 2014 period. |
Six Months Ended June 30, 2015 | Six Months Ended June 30, 2014 | |||||||||||
(Millions of Dollars) | Electric | Gas | 2015 Total | Electric | Gas | 2014 Total | 2015-2014 Variation | |||||
Operating revenues | $318 | $93 | $411 | $320 | $128 | $448 | $(37) | |||||
Purchased power | 105 | — | 105 | 120 | — | 120 | (15) | |||||
Gas purchased for resale | — | 31 | 31 | — | 55 | 55 | (24) | |||||
Other operations and maintenance | 132 | 35 | 167 | 120 | 34 | 154 | 13 | |||||
Depreciation and amortization | 25 | 9 | 34 | 21 | 8 | 29 | 5 | |||||
Taxes, other than income taxes | 22 | 9 | 31 | 22 | 9 | 31 | — | |||||
Operating income | $34 | $9 | $43 | $37 | $22 | $59 | $(16) |
Six Months Ended | ||||
(Millions of Dollars) | June 30, 2015 | June 30, 2014 | Variation | |
Operating revenues | $318 | $320 | $(2) | |
Purchased power | 105 | 120 | (15) | |
Other operations and maintenance | 132 | 120 | 12 | |
Depreciation and amortization | 25 | 21 | 4 | |
Taxes, other than income taxes | 22 | 22 | — | |
Electric operating income | $34 | $37 | $(3) |
Millions of kWhs Delivered | Revenues in Millions (a) | |||||||||||||
Six Months Ended | Six Months Ended | |||||||||||||
Description | June 30, 2015 | June 30, 2014 | Variation | Percent Variation | June 30, 2015 | June 30, 2014 | Variation | Percent Variation | ||||||
Residential/Religious (b) | 745 | 704 | 41 | 5.8 | % | $147 | $139 | $8 | 5.8 | % | ||||
Commercial/Industrial | 391 | 409 | (18 | ) | (4.4 | ) | 63 | 70 | (7) | (10.0 | ) | |||
Energy choice customers | 1,578 | 1,579 | (1 | ) | (0.1 | ) | 99 | 92 | 7 | 7.6 | ||||
Public authorities | 50 | 49 | 1 | 2.0 | 5 | 7 | (2) | (28.6 | ) | |||||
Other operating revenues (c) | — | — | — | — | 4 | 12 | (8) | (66.7 | ) | |||||
Total | 2,764 | 2,741 | 23 | 0.8 | % | (d) | $318 | $320 | $(2) | (0.6 | )% |
(a) | O&R’s New York electric delivery revenues are subject to a revenue decoupling mechanism, as a result of which delivery revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved. O&R’s electric sales in New Jersey and Pennsylvania are not subject to a decoupling mechanism, and as a result, changes in such volumes do impact revenues. |
(b) | “Residential/Religious” generally includes single-family dwellings, individual apartments in multi-family dwellings, religious organizations and certain other not-for-profit organizations. |
(c) | Other electric operating revenues generally reflect changes in regulatory assets and liabilities in accordance with the company’s electric rate plan. |
(d) | After adjusting for weather and other variations, electric delivery volumes in O&R’s service area decreased 0.7 percent in the six months ended June 30, 2015 compared with the 2014 period. |
Six Months Ended | ||||
(Millions of Dollars) | June 30, 2015 | June 30, 2014 | Variation | |
Operating revenues | $93 | $128 | $(35) | |
Gas purchased for resale | 31 | 55 | (24) | |
Other operations and maintenance | 35 | 34 | 1 | |
Depreciation and amortization | 9 | 8 | 1 | |
Taxes, other than income taxes | 9 | 9 | — | |
Gas operating income | $9 | $22 | $(13) |
Thousands of Dt Delivered | Revenues in Millions (a) | ||||||||||||||||
Six Months Ended | Six Months Ended | ||||||||||||||||
Description | June 30, 2015 | June 30, 2014 | Variation | Percent Variation | June 30, 2015 | June 30, 2014 | Variation | Percent Variation | |||||||||
Residential | 5,308 | 5,012 | 296 | 5.9 | % | $48 | $65 | $(17) | (26.2 | )% | |||||||
General | 1,174 | 1,113 | 61 | 5.5 | 9 | 13 | (4) | (30.8 | ) | ||||||||
Firm transportation | 8,032 | 7,938 | 94 | 1.2 | 43 | 46 | (3) | (6.5 | ) | ||||||||
Total firm sales and transportation | 14,514 | 14,063 | 451 | 3.2 | (b) | 100 | 124 | (24) | (19.4 | ) | |||||||
Interruptible sales | 2,300 | 2,347 | (47 | ) | (2.0 | ) | 2 | 1 | 1 | Large | |||||||
Generation plants | 15 | 37 | (22 | ) | (59.5 | ) | — | — | — | — | |||||||
Other | 605 | 588 | 17 | 2.9 | — | — | — | — | |||||||||
Other gas revenues | — | — | — | — | (9) | 3 | (12) | Large | |||||||||
Total | 17,434 | 17,035 | 399 | 2.3 | % | $93 | $128 | $(35) | (27.3 | )% |
(a) | Revenues from New York gas sales are subject to a weather normalization clause and a revenue decoupling mechanism as a result of which delivery revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved. Delivery revenues, however, are affected by changes in volumes attributable to changes in the average number of customers. |
(b) | After adjusting for weather and other variations, total firm sales and transportation volumes increased 0.3 percent in six months ended June 30, 2015 compared with the 2014 period. |
Six Months Ended | |||||
(Millions of Dollars) | June 30, 2015 | June 30, 2014 | Variation | ||
Operating revenues | $702 | $612 | $90 | ||
Purchased power | 542 | 491 | 51 | ||
Gas purchased for resale | 68 | 46 | 22 | ||
Other operations and maintenance | 61 | 50 | 11 | ||
Depreciation and amortization | 11 | 11 | — | ||
Taxes, other than income taxes | 10 | 9 | 1 | ||
(Gain) on sale of solar electric production projects | — | (45) | 45 | ||
Operating income | $10 | $50 | $(40) |
Con Edison | CECONY | |||||
(Millions of Dollars) | 2015 | 2014 | Variance | 2015 | 2014 | Variance |
Operating activities | $1,486 | $1,257 | $229 | $1,202 | $882 | $320 |
Investing activities | (1,725) | (1,233) | (492) | (1,209) | (1,104) | (105) |
Financing activities | 249 | 76 | 173 | 28 | 285 | (257) |
Net change | 10 | 100 | (90) | 21 | 63 | (42) |
Balance at beginning of period | 699 | 674 | 25 | 645 | 633 | 12 |
Balance at end of period | $709 | $774 | $(65) | $666 | $696 | $(30) |
2015 | 2014 | |||
(Millions of Dollars, except Weighted Average Yield) | Outstanding at June 30, | Daily average | Outstanding at June 30, | Daily average |
Con Edison | $1,245 | $536 | $1,531 | $800 |
CECONY | $995 | $183 | $1,482 | $682 |
Weighted average yield | 0.4% | 0.4% | 0.2% | 0.2% |
Ratio of Earnings to Fixed Charges | ||||||
For the Six Months Ended June 30, 2015 | For the Six Months Ended June 30, 2014 | For the Twelve Months Ended December 31, 2014 | ||||
Con Edison (a) | 3.5 | 3.8 | 3.6 | |||
CECONY | 3.7 | 3.7 | 3.8 |
(a) | Reflects after-tax benefit/(charge) to earnings relating to Con Edison Development’s LILO transactions of $7 million and $(1) million for the six months ended June 30, 2014 and twelve months ended December 31, 2014, respectively. Also reflects an after-tax benefit to earnings relating to Con Edison Development's gain on sale of solar electric production projects of $26 million for the six months ended June 30, 2014 and twelve months ended December 31, 2014. |
Common Equity Ratio (Percent of total capitalization) | ||
June 30, 2015 | December 31, 2014 | |
Con Edison | 51.8 | 52.0 |
CECONY | 50.8 | 50.7 |
Con Edison | CECONY | |||
(Millions of Dollars) | 2015 vs. 2014 Variance | 2015 vs. 2014 Variance | ||
Assets | ||||
Assets held for sale | $167 | $— | ||
Regulatory asset — Unrecognized pension and other postretirement costs | (446) | (418) | ||
Income taxes receivable | (224) | — | ||
Liabilities | ||||
Deferred income taxes and investment tax credits | $332 | $259 | ||
Liabilities held for sale | 91 | — | ||
Pension and retiree benefits | (494) | (482) |
• | Ordered CECONY, O&R and the other electric utilities to file distributed system implementation plans pursuant to which the utilities, under the NYSPSC’s authority and supervision, would serve as distributed system platforms to optimize the use of distributed energy resources (DER); |
• | Indicated that the utilities will be allowed to own DER only under limited circumstances, and that utility affiliate ownership of DER within the utility’s service territory will require market power protections; |
• | Ordered the utilities to file energy efficiency plans with their program costs to be recovered through rates (instead of through the current surcharge); |
• | Instituted a separate track in the REV proceeding to consider large-scale renewable generation; and |
• | Indicated that the design and implementation of the reformed energy system will occur over a period of years. |
Project Name | Production Technology | Generating Capacity (a) (MWs AC) | PPA Term (In Years) | Actual/Expected In-Service Date | Location (State) | |
Wholly owned projects | ||||||
Flemington | Solar | 8 | n/a (b) | 2011 | New Jersey | |
Frenchtown I, II and III | Solar | 14 | n/a (b) | 2011-13 | New Jersey | |
PA Solar | Solar | 10 | n/a (b) | 2012 | Pennsylvania | |
Shrewsbury | Solar | 3 | 20 (b) | 2012 | Massachusetts | |
Groveland | Solar | 3 | 20 (b) | 2012 | Massachusetts | |
White River 2 | Solar | 20 | 20 | 2014 | California | |
Oak Tree Wind | Wind | 20 | 20 | 2014 | South Dakota | |
Texas Solar 3 | Solar | 5 | 25 | 2015 | Texas | |
Corcoran 2 | Solar | 20 | 20 | 2015 | California | |
Atwell West | Solar | 20 | 20 | 2015 | California | |
Projects of less than 3 MW | Solar | 14 | Various | Various | Various | |
Jointly owned projects | ||||||
Pilesgrove | Solar | 9 | n/a (b) | 2011 | New Jersey | |
California Solar | Solar | 55 | 25 | 2012-13 | California | |
Mesquite Solar 1 | Solar | 83 | 20 | 2013 | Arizona | |
Copper Mountain Solar 2 Phase 1 and 2 | Solar | 75 | 25 | 2013-15 | Nevada | |
Copper Mountain Solar 3 | Solar | 128 | 20 | 2014-15 | Nevada | |
Broken Bow II | Wind | 37 | 25 | 2014 | Nebraska | |
Texas Solar 4 | Solar | 32 | 25 | 2014 | Texas | |
Total MW in Operation | 556 | |||||
Alamo Solar 5 (c) | Solar | 95 | 25 | 2015 | Texas | |
Campbell County Wind (d) | Wind | 95 | 30 | 2015 | South Dakota | |
Corcoran 3 | Solar | 20 | 20 | 2015 | California | |
California Solar 3 (e) | Solar | 110 | 20 | 2016 | California | |
Total MW in Construction | 320 | |||||
Total MW | 876 |
(a) | Represents Con Edison Development’s ownership interest in the project. |
(b) | New Jersey, Pennsylvania and Massachusetts assets have 3-5 year Solar Renewable Energy Credit hedges in place. |
(c) | In May 2015, Con Edison Development purchased a company that is the owner of a 95 MW (AC) solar electric production project in Uvalde, Texas (Alamo Solar 5). The total cost of the project is expected to be approximately $310 million. Electricity generated by the project is to be purchased by the City of San Antonio pursuant to a long-term power purchase agreement. |
(d) | In June 2015, Con Edison Development purchased a company that is the owner of a 95 MW (AC) wind electric production project in Campbell County, South Dakota (Campbell County Wind). The total cost of the project is expected to be approximately $180 million. Electricity generated by the project is to be purchased by the Basin Electric Power Cooperative pursuant to a long-term power purchase agreement. |
(e) | In January and February 2015, Con Edison Development purchased a company that is the owner of 110 MW (AC) of solar electric production projects in California (California Solar 3). The total cost of these projects is expected to be approximately $280 million. Electricity generated by these projects is to be purchased by Pacific Gas and Electric Company and Southern California Edison pursuant to long-term power purchase agreements. |
95% Confidence Level, One-Day Holding Period | June 30, 2015 | December 31, 2014 | |
(Millions of Dollars) | |||
Average for the period | $1 | $1 | |
High | 2 | 7 | |
Low | 1 | — |
Period | Total Number of Shares (or Units) Purchased | Average Price Paid per Share (or Unit) | Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs | Maximum Number (or Appropriate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs | |||
April 1, 2015 to April 30, 2015 | 145,153 | $60.72 | — | — | |||
May 1, 2015 to May 31, 2015 | 57,264 | 61.51 | — | — | |||
June 1, 2015 to June 30, 2015 | 85,537 | 60.00 | — | — | |||
Total | 287,954 | $60.66 | — | — |
Exhibit 12.1 | Statement of computation of Con Edison’s ratio of earnings to fixed charges for the six-month periods ended June 30, 2015 and 2014, and the 12-month period ended December 31, 2014. |
Exhibit 31.1.1 | Rule 13a-14(a)/15d-14(a) Certifications – Chief Executive Officer. |
Exhibit 31.1.2 | Rule 13a-14(a)/15d-14(a) Certifications – Chief Financial Officer. |
Exhibit 32.1.1 | Section 1350 Certifications – Chief Executive Officer. |
Exhibit 32.1.2 | Section 1350 Certifications – Chief Financial Officer. |
Exhibit 101.INS | XBRL Instance Document. |
Exhibit 101.SCH | XBRL Taxonomy Extension Schema. |
Exhibit 101.CAL | XBRL Taxonomy Extension Calculation Linkbase. |
Exhibit 101.DEF | XBRL Taxonomy Extension Definition Linkbase. |
Exhibit 101.LAB | XBRL Taxonomy Extension Label Linkbase. |
Exhibit 101.PRE | XBRL Taxonomy Extension Presentation Linkbase. |
Exhibit 12.2 | Statement of computation of CECONY’s ratio of earnings to fixed charges for the six-month periods ended June 30, 2015 and 2014, and the 12-month period ended December 31, 2014. |
Exhibit 31.2.1 | Rule 13a-14(a)/15d-14(a) Certifications – Chief Executive Officer. |
Exhibit 31.2.2 | Rule 13a-14(a)/15d-14(a) Certifications – Chief Financial Officer. |
Exhibit 32.2.1 | Section 1350 Certifications – Chief Executive Officer. |
Exhibit 32.2.2 | Section 1350 Certifications – Chief Financial Officer. |
Exhibit 101.INS | XBRL Instance Document. |
Exhibit 101.SCH | XBRL Taxonomy Extension Schema. |
Exhibit 101.CAL | XBRL Taxonomy Extension Calculation Linkbase. |
Exhibit 101.DEF | XBRL Taxonomy Extension Definition Linkbase. |
Exhibit 101.LAB | XBRL Taxonomy Extension Label Linkbase. |
Exhibit 101.PRE | XBRL Taxonomy Extension Presentation Linkbase. |
Consolidated Edison, Inc. | ||
Consolidated Edison Company of New York, Inc. | ||
DATE: August 6, 2015 | By | /s/ Robert Hoglund |
Robert Hoglund Senior Vice President, Chief Financial Officer and Duly Authorized Officer |
For the Six Months Ended June 30, 2015 | For the Twelve Months Ended December 31, 2014 | For the Six Months Ended June 30, 2014 | ||||||
Earnings | ||||||||
Net Income for Common Stock | $589 | $1,092 | $574 | |||||
Preferred Stock Dividend | — | — | — | |||||
(Income) or Loss from Equity Investees | (15) | (27) | (12 | ) | ||||
Minority Interest Loss | — | — | — | |||||
Income Tax | 300 | 568 | 300 | |||||
Pre-Tax Income | $874 | $1,633 | $862 | |||||
Add: Fixed Charges* | 346 | 636 | 311 | |||||
Add: Distributed Income of Equity Investees | — | — | — | |||||
Subtract: Interest Capitalized | — | — | — | |||||
Subtract: Pre-Tax Preferred Stock Dividend Requirement | — | — | — | |||||
Earnings | $1,220 | $2,269 | $1,173 | |||||
* Fixed Charges | ||||||||
Interest on Long-term Debt | $304 | $573 | $286 | |||||
Amortization of Debt Discount, Premium and Expense | 7 | 14 | 7 | |||||
Interest Capitalized | — | — | — | |||||
Other Interest | 13 | 5 | (5) | |||||
Interest Component of Rentals | 22 | 44 | 23 | |||||
Pre-Tax Preferred Stock Dividend Requirement | — | — | — | |||||
Fixed Charges | $346 | $636 | $311 | |||||
Ratio of Earnings to Fixed Charges | 3.5 | 3.6 | 3.8 |
For the Six Months Ended June 30, 2015 | For the Twelve Months Ended December 31, 2014 | For the Six Months Ended June 30, 2014 | ||||||
Earnings | ||||||||
Net Income for Common Stock | $559 | $1,058 | $506 | |||||
Preferred Stock Dividend | — | — | — | |||||
(Income) or Loss from Equity Investees | — | — | — | |||||
Minority Interest Loss | — | — | — | |||||
Income Tax | 293 | 555 | 262 | |||||
Pre-Tax Income | $852 | $1,613 | $768 | |||||
Add: Fixed Charges* | 312 | 580 | 286 | |||||
Add: Distributed Income of Equity Investees | — | — | — | |||||
Subtract: Interest Capitalized | — | — | — | |||||
Subtract: Pre-Tax Preferred Stock Dividend Requirement | — | — | — | |||||
Earnings | $1,164 | $2,193 | $1,054 | |||||
* Fixed Charges | ||||||||
Interest on Long-term Debt | $275 | $510 | $251 | |||||
Amortization of Debt Discount, Premium and Expense | 7 | 13 | 7 | |||||
Interest Capitalized | — | — | — | |||||
Other Interest | 9 | 15 | 7 | |||||
Interest Component of Rentals | 21 | 42 | 21 | |||||
Pre-Tax Preferred Stock Dividend Requirement | — | — | — | |||||
Fixed Charges | $312 | $580 | $286 | |||||
Ratio of Earnings to Fixed Charges | 3.7 | 3.8 | 3.7 |
/s/ John McAvoy |
John McAvoy |
Chairman, President and Chief Executive Officer |
/s/ Robert Hoglund |
Robert Hoglund |
Senior Vice President and Chief Financial Officer |
/s/ John McAvoy |
John McAvoy |
Chairman and Chief Executive Officer |
/s/ Robert Hoglund |
Robert Hoglund |
Senior Vice President and Chief Financial Officer |
/s/ John McAvoy |
John McAvoy |
/s/ Robert Hoglund |
Robert Hoglund |
/s/ John McAvoy |
John McAvoy |
/s/ Robert Hoglund |
Robert Hoglund |
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