Consolidated Edison (ED) Q4 2023 earnings summary

Executive summary

• 2023 net income for common stock was $2,519 million, or $7.25/share, versus $1,660 million, or $4.68/share, in 2022; adjusted earnings were $1,762 million, or $5.07/share, versus $1,620 million, or $4.57/share.

• Reported earnings included a $767 million after-tax gain from the Clean Energy Businesses sale; adjusted earnings exclude this gain and other specified items.

• Regulated utilities are expected to provide substantially all earnings over the next few years, supported by approved rate plans and continued investment in energy delivery systems.

Financial highlights

• Operating revenue was $14,663 million in 2023 versus $15,670 million in 2022; 2023 included only two months of Clean Energy Businesses results before the March 1 sale.

• Operating income was $3,196 million versus $2,624 million; 2023 included an $865 million pre-tax sale gain.

• Net cash from operating activities was $2,156 million in 2023 versus $3,935 million in 2022; lower cash flow reflected working-capital and regulatory balance movements.

• Net utility plant reached $49,608 million at year-end 2023, up from $46,766 million in 2022.

Outlook and guidance

• Utilities forecast capital investments of $4,822 million in 2024, $5,212 million in 2025, and $5,867–$5,879 million annually in 2026–2028; transmission investment estimates are $27 million, $31 million, $108 million, $113 million and $119 million, respectively.

• Funding plans call for up to $3,250 million of utility long-term debt in 2024, up to $1,000 million in 2025, and about $6,000 million in aggregate during 2026–2028; planned equity issuance is ~$1,300 million in 2025 and up to $2,800 million in 2026–2028.

• CECONY forecasts average annual peak-demand growth of 0.7% for electricity and declines of 0.8% for gas and 0.5% for steam over five years; O&R forecasts 2.0% electric growth and 0.2% gas decline.

• January 2024 rate filings seek O&R electric and gas increases of $18.1 million and $14.4 million, respectively, effective January 2025.