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Con Edison Announces Favorable 1999 Earnings; Increases Dividend For 26th Consecutive Year
Expands Stock Repurchase Program by $300 Million

NEW YORK, Jan. 20 /PRNewswire/ -- Consolidated Edison, Inc. (NYSE: ED) today reported favorable earnings growth of 3.3 percent for 1999, increased its dividend by 4 cents on an annualized basis and expanded its common stock repurchase program by up to $300 million. ``These actions reflect the company's continued commitment to provide enhanced shareholder value for both the short- and long-term,'' said Chairman and Chief Executive Officer Eugene R. McGrath.

The company declared a dividend of 54-1/2 cents a share on its common stock payable March 15, 2000 to stockholders of record as of February 16, 2000, an increase of one cent over the previous quarterly dividend of 53-1/2 cents.

``This continues our record of increasing dividends each year for more than a quarter of a century, a further indication of shareholder commitment,'' stated Mr. McGrath.

The company also announced that its Board of Directors had approved the expansion of the stock repurchase program by allowing for the repurchase of up to an additional $300 million of stock. Repurchases will be made from time to time on the open market, as determined by market conditions and other financial needs of the company. Through the end of 1999, Con Edison had repurchased 21 million shares, amounting to $940 million of its previously announced $1 billion common stock repurchase program.

``Our major effort on behalf of shareholders for the year 2000,'' Mr. McGrath continued, ``will be to bring about the successful closure of the proposed merger with Northeast Utilities (NU) and achieving the expected synergies rapidly.'' In that regard, by the end of this week, the company and NU will have filed the details of the proposed merger and requests for support or approval with regulatory agencies in all of the states in which they operate, as well as with the FERC, SEC and NRC. The closing of the merger is projected to take place prior to year-end.

The 3.3 percent increase in earnings per share resulted from the impact of the strong local economy on the company's electric sales and revenues, continued emphasis on cost control and cost reduction, and the effects of the common stock repurchase program. ``The higher earnings were a reflection of the company's ability to mitigate the effects of divestiture and the continued rate reductions that were implemented in accordance with the company's electric restructuring agreement, as well as the cost impacts of the summer heat wave and Hurricane Floyd,'' said Executive Vice President and Chief Financial Officer Joan S. Freilich.

``The cash proceeds from the sale of our power plants were promptly deployed in our acquisition of Orange & Rockland Utilities (O&R) and the stock repurchase program,'' she noted, ``thus restoring the earnings that would otherwise have been lost through the divestiture of these assets. The integration of O&R into the Con Edison family has proceeded rapidly and smoothly and O&R is contributing, as expected, to our solid financial results.''

The company's net income for common stock for 1999 was $700.6 million or $3.14 a share, compared with $712.7 million or $3.04 a share for 1998.

The company's net income for common stock for the fourth quarter of 1999 was $121.6 million or $.58 a share, compared with $131.8 million or $.56 a share for the fourth quarter of 1998.

Net income for common stock for the 1999 periods reflects Con Edison's purchase of O&R in July 1999, while the periods prior to July 1999 do not include O&R's financial results.

Consolidated Edison Company of New York's electric sales volume in 1999 was 3.9 percent higher than in 1998. Firm gas sales and transportation volume increased 5.8 percent and steam sales volume also increased 6.1 percent, reflecting the very mild 1998 winter weather.

Consolidated Edison, Inc. is one of the nation's largest investor-owned energy companies, with more than $7 billion in annual revenues and approximately $15 billion in assets. The company provides a wide range of energy-related products and services to its customers through its six subsidiaries: Consolidated Edison Company of New York, Inc., a regulated utility providing electric, gas and steam service to New York City and Westchester County, New York; Orange and Rockland Utilities, Inc., a regulated utility serving customers in a 1,350 square mile area in southeastern New York State, as well as adjacent sections of northern New Jersey and northeastern Pennsylvania; Con Edison Solutions, a retail energy services company; Con Edison Energy, a wholesale energy supply company; Con Edison Development, an infrastructure development company; and Con Edison Communications, a telecommunications infrastructure company.

For additional financial, operations and customer service information, visit the Consolidated Edison, Inc. web site at http://www.conedison.com.

                          CONSOLIDATED EDISON, INC.
                        CONSOLIDATED INCOME STATEMENT
                THREE MONTHS ENDED DECEMBER 31, 1999 AND 1998

                                   1999                    1998
                                     (Thousands of Dollars)

    Operating revenues
     Electric                  $1,430,977              $1,277,947
     Gas                          274,613                 223,949
     Steam                         79,607                  66,185
     Non-utility                  103,911                  49,256
       Total operating
        revenues                1,889,108               1,617,337

    Operating expenses
     Purchased power              607,386                 248,984
     Fuel                          80,682                 117,396
     Gas purchased for resale     145,438                  99,737
     Other operations             301,223                 319,475
     Maintenance                  105,169                 111,470
     Depreciation and
      amortization                125,352                 130,785
     Taxes, other than federal
      income tax                  276,611                 289,405
     Federal income tax            59,191                  87,775
       Total operating
        expenses                1,701,052               1,405,027

    Operating income              188,056                 212,310

    Other income (deductions)
     Investment income              5,342                   3,856
     Allowance for equity funds
      used during construction      1,042                     697
     Other income less
      miscellaneous deductions   (13,196)                 (4,466)
     Federal income tax            32,098                   1,455
       Total other income          25,286                   1,542

    Income before interest
     charges                      213,342                 213,852

    Interest on long-term debt     83,232                  75,807
    Other interest                  5,695                   3,173
    Allowance for borrowed funds
     used during construction       (546)                   (357)
       Net interest charges        88,381                  78,623

    Preferred stock dividend
     requirements                   3,398                   3,398
    Net income for common stock  $121,563                $131,831

    Common shares outstanding
     - average (000)              216,312                 233,098
    Basic earnings per share        $0.58                   $0.56
    Diluted earnings per share      $0.57                   $0.56

    Consolidated Edison Company of
    New York, Inc. Sales
     Electric (thousands of
     kilowatthours)
      Total sales in service
       territory               12,073,423              11,778,046
      Off-system and
       ESCO sales               1,955,238               1,534,641
     Gas (dekatherms)
      Firm sales and
       transportation          21,129,401              20,204,423
      Off-system sales          6,794,771               8,368,549
     Steam (thousands
      of pounds)                5,433,749               5,134,057

                          CONSOLIDATED EDISON, INC.
                        CONSOLIDATED INCOME STATEMENT
               TWELVE  MONTHS ENDED DECEMBER 31, 1999 AND 1998

                                   1999                    1998
                                      (Thousands of Dollars)

    Operating revenues
     Electric                  $5,792,673              $5,674,446
     Gas                        1,000,083                 959,609
     Steam                        340,026                 321,932
     Non-utility                  358,541                 137,061
       Total operating
        revenues                7,491,323               7,093,048

    Operating expenses
     Purchased power            1,824,023               1,253,783
     Fuel                         430,050                 579,006
     Gas purchased for resale     485,155                 437,308
     Other operations           1,188,623               1,157,958
     Maintenance                  437,979                 477,413
     Depreciation and
      amortization                526,182                 518,514
     Taxes, other than
      federal income tax        1,179,796               1,208,102
     Federal income tax           399,716                 407,639
       Total operating
        expenses                6,471,524               6,039,723

    Operating income            1,019,799               1,053,325

    Other income (deductions)
     Investment income             14,842                  11,760
     Allowance for equity funds
      used during construction      3,810                   2,431
     Other income less
      miscellaneous deductions   (13,571)                (14,212)
     Federal income tax            26,891                   2,229
       Total other income          31,972                   2,208

    Income before interest
     charges                    1,051,771               1,055,533

    Interest on long-term debt    319,393                 308,671
    Other interest                 20,065                  18,359
    Allowance for borrowed funds
     used during construction     (1,895)                 (1,246)
    Net interest charges          337,563                 325,784

    Preferred stock dividend
     requirements                  13,593                  17,007
    Net income for common stock  $700,615                $712,742

    Common shares outstanding
     - average (000)              223,442                 234,308
    Basic earnings per share        $3.14                   $3.04
    Diluted earnings per share      $3.13                   $3.04

    Consolidated Edison Company
    of New York, Inc. Sales
     Electric (thousands
     of kilowatthours)
      Total sales in
       service territory       50,525,792              48,645,587
      Off-system and
       ESCO sales               9,105,786               3,955,096
     Gas (dekatherms)
      Firm sales and
       transportation          89,359,313              84,426,238
      Off-system sales         32,942,436              25,982,200
     Steam (thousands
      of pounds)               26,532,797              24,995,694

SOURCE: Consolidated Edison, Inc.
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