Consolidated Edison (ED) Investor update summary

Investment thesis and growth

• Growth is driven by New York electrification, climate resilience, reliability and modernization—not hyperscale data centers; new capacity requests are 20% above historical levels, supporting $38bn of planned five-year investment.

• 2026–35 plans include 9 new CECONY substations and 19 for O&R, plus 12 O&R major upgrades and 33 transmission upgrades.

• Average investment earnings base is forecast to rise from $47.1bn in 2025 to $71.4bn in 2030E, an 8.7% five-year CAGR; outlook was adjusted from 8.8% after the steam settlement proposal.

• Transmission investment is expected to exceed $1bn over 5–10 years; Propel NY Energy costs $3.26bn, with NY Transco’s share expected at ~$2.2bn excluding interconnection and local-owner costs, and CET holding 41.7% equity in NY Transco’s share.

• Key projects include 1,250 MW of Champlain Hudson Power Express hydroelectric power and 810 MW of Empire Wind offshore wind.

Regulation and customer affordability

• 2026 CLCPA amendments set a 60% statewide interim GHG reduction goal below 1990 levels by 2040; the 2050 net-zero goal and electric-sector targets of 70% renewables by 2030 and 100% by 2040 remain.

• Utilities proposed developing 1 GW of land-based renewables annually; the service-territory share is estimated at 45%, with a PSC staff white paper expected later in 2026.

• 2025 bill discounts totaled $268m; ~494,000 customers were enrolled in affordability programs as of August 2026. Residential electric bills averaged $228 (16%) below the proxy-peer average and $276 (20%) below the peer median.

• 2026 CECONY electric and gas rate plans provide 9.4% ROE and 48% equity; O&R plans provide 9.75% ROE and 48% equity. Proposed CECONY steam settlement provides 9.5% ROE and 48% equity, subject to PSC approval.

• Local energy-infrastructure taxes are expected to exceed $3.2bn in 2026; property taxes account for 17%–18% of customer bills, with separate tax itemization planned later in 2026.

Reliability and climate resilience

• CECONY reliability is nine times the national average and earned the 2025 ReliabilityOne national award; over 10 years, it had 10x fewer interruptions and >6x fewer interruption minutes than proxy peers, including major event days.

• 2026–30 resilience investment totals $626.9m for CECONY and $169.5m for O&R; investments since 2013 helped avoid an estimated 1.3m weather-related customer outages, with climate studies updated every five years.

• NYC capacity needs are projected at 125 MW by 2033, 675 MW by 2036 and 2,275 MW by 2045; options include battery storage, clean non-emitting resources and transmission cooling enhancements.

• CECONY’s grid is 72% underground; 65 of 84 networks have double redundancy, allowing two supply feeders to fail during peak summer conditions while maintaining full service.

• CECONY and O&R replaced >300 miles of vintage gas mains over three years; CECONY methane emissions were 66% below 1990 levels in 2025 and 99.5% of reported gas leaks were answered within 30 minutes.