CON EDISON REPORTS 2023 THIRD QUARTER EARNINGS

NEW YORK, Nov. 2, 2023 /PRNewswire/ -- Consolidated Edison, Inc. (Con Edison) (NYSE: ED) today reported 2023 third quarter net income for common stock of $526 million or $1.53 a share compared with $613 million or $1.73 a share in the 2022 third quarter. Adjusted earnings (non-GAAP) were $561 million or $1.62 a share in the 2023 period compared with $579 million or $1.63 a share in the 2022 period. Adjusted earnings and adjusted earnings per share in the 2023 and 2022 periods exclude the effects of hypothetical liquidation at book value (HLBV) accounting for tax equity investments and the related tax impact on the parent company. Adjusted earnings and adjusted earnings per share in the 2023 period exclude the gain and other impacts related to the sale of its former subsidiary, Con Edison Clean Energy Businesses, Inc. (the Clean Energy Businesses). Adjusted earnings and adjusted earnings per share in the 2022 period exclude the net mark-to-market effects of the Clean Energy Businesses and the related tax impacts on the parent company.

For the first nine months of 2023, net income for common stock was $2,185 million or $6.27 a share compared with $1,470 million or $4.15 a share in the first nine months of 2022. Adjusted earnings were $1,416 million or $4.07 a share in the 2023 period compared with $1,329 million or $3.75 a share in the 2022 period. Adjusted earnings and adjusted earnings per share in the 2023 period exclude the gain and other impacts related to the sale of the Clean Energy Businesses. Adjusted earnings and adjusted earnings per share in the 2023 and 2022 periods exclude the effects of HLBV accounting for tax equity investments, the net mark-to-market effects of the Clean Energy Businesses, and the related tax impacts on the parent company.

"Con Edison continued to execute on our strategy of investing in the transition to clean energy while keeping our commitment to provide reliable service to our customers. We achieved another milestone during the quarter in our journey toward the clean energy future when we began construction of our Brooklyn Clean Energy Hub, a transmission substation that will serve reliability needs while acting as a potential point of entry for clean, renewable wind power," said Tim Cawley, the chairman and CEO of Con Edison. "We also released our Climate Change Vulnerability Study with new research showing how rapidly our region is becoming warmer. It affirms our belief that we must continue making strategic investments to make our energy systems more resilient to climate change."

"We continued to provide strong, stable earnings for investors this quarter," said Robert Hoglund, senior vice president and CFO of Con Edison. "Our utilities have rate plans in place that allow us to continue making critical investments on behalf of our customers and provide certainty for investors. We will continue to make prudent investments that will contribute to our region's transition to clean energy and allow us to upgrade our expansive infrastructure to protect it from the increasingly severe weather that climate change is bringing."

For the year of 2023, Con Edison expects its adjusted earnings per share to be in the range of $5.00 to $5.10 per share. Con Edison's previous forecast was in the range of $4.85 to $5.00 per share. Adjusted earnings per share exclude the gain and other impacts related to the sale of the Clean Energy Businesses (approximately $2.24 a share after-tax), the effects of HLBV accounting for tax equity investments (approximately $(0.02) a share after-tax), the net mark-to-market effects of the Clean Energy Businesses ($(0.03) a share after-tax), and the related tax impacts on the parent company. In October 2023, Con Edison increased the amount of long-term debt it plans to issue at Consolidated Edison Company of New York, Inc. (CECONY) and Orange and Rockland Utilities, Inc. (O&R) from up to $1,400 million to up to $2,100 million, of which $500 million was issued in the first nine months of 2023.

See Attachment A to this press release for a reconciliation of Con Edison's reported earnings per share to adjusted earnings per share and reported net income for common stock to adjusted earnings for the three and nine months ended September 30, 2023 and 2022. See Attachments B and C for the estimated effect of major factors resulting in variations in earnings per share and net income for common stock for the three and nine months ended September 30, 2023 compared to the 2022 periods.

The company's 2023 Third Quarter Form 10-Q is being filed with the Securities and Exchange Commission. A third quarter 2023 earnings release presentation will be available at conedison.com. (Select "For Investors" and then select "Press Releases.")

This press release contains forward-looking statements that are intended to qualify for the safe-harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are statements of future expectations and not facts. Words such as "forecasts," "expects," "estimates," "anticipates," "intends," "believes," "plans," "will," "target," "guidance," "potential," "consider" and similar expressions identify forward-looking statements. The forward-looking statements reflect information available and assumptions at the time the statements are made, and accordingly speak only as of that time.

Actual results or developments might differ materially from those included in the forward-looking statements because of various factors such as those identified in reports Con Edison has filed with the Securities and Exchange Commission, including that Con Edison's subsidiaries are extensively regulated and are subject to substantial penalties; its utility subsidiaries' rate plans may not provide a reasonable return; it may be adversely affected by changes to the utility subsidiaries' rate plans; the failure of, or damage to, its subsidiaries' facilities could adversely affect it; a cyber-attack could adversely affect it; the failure of processes and systems and the performance and failure to retain and attract employees and contractors could adversely affect it; it is exposed to risks from the environmental consequences of its subsidiaries' operations, including increased costs related to climate change; its ability to pay dividends or interest depends on dividends from its subsidiaries; changes to tax laws could adversely affect it; it requires access to capital markets to satisfy funding requirements; a disruption in the wholesale energy markets, increased commodity costs or failure by an energy supplier or customer could adversely affect it; it may have substantial unfunded pension and other postretirement benefit liabilities; it faces risks related to health epidemics and other outbreaks; its strategies may not be effective to address changes in the external business environment; it faces risks related to supply chain disruptions and inflation; and it also faces other risks that are beyond its control. Con Edison assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. 

This press release also contains financial measures, adjusted earnings and adjusted earnings per share, that are not determined in accordance with generally accepted accounting principles in the United States of America (GAAP). These non-GAAP financial measures should not be considered as an alternative to net income for common stock or net income per share, respectively, each of which is an indicator of financial performance determined in accordance with GAAP. Adjusted earnings and adjusted earnings per share exclude from net income for common stock and net income per share, respectively, certain items that Con Edison does not consider indicative of its ongoing financial performance such as the gain and other impacts related to the sale of the Clean Energy Businesses, the effects of HLBV accounting for tax equity investments and mark-to-market accounting and the related tax impacts on the parent company. Management uses these non-GAAP financial measures to facilitate the analysis of Con Edison's financial performance as compared to its internal budgets and previous financial results and to communicate to investors and others Con Edison's expectations regarding its future earnings and dividends on its common stock. Management believes that these non-GAAP financial measures are also useful and meaningful to investors to facilitate their analysis of Con Edison's financial performance.

Consolidated Edison, Inc. is one of the nation's largest investor-owned energy-delivery companies, with approximately $16 billion in annual revenues and $64 billion in assets. The company provides a wide range of energy-related products and services to its customers through the following subsidiaries: Consolidated Edison Company of New York, Inc., a regulated utility providing electric service in New York City and New York's Westchester County, gas service in Manhattan, the Bronx, parts of Queens and parts of Westchester, and steam service in Manhattan; Orange and Rockland Utilities, Inc., a regulated utility serving customers in a 1,300-square-mile area in southeastern New York State and northern New Jersey; and Con Edison Transmission, Inc., which falls primarily under the oversight of the Federal Energy Regulatory Commission and manages, through joint ventures, both electric and gas assets while seeking to develop electric transmission projects that will bring clean, renewable electricity to customers, focusing on New York, New England, the Mid-Atlantic states and the Midwest. 

SOURCE Consolidated Edison, Inc.