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Con Edison, Inc. Reports 2004 First Quarter Earnings

NEW YORK, April 22 /PRNewswire-FirstCall/ -- Consolidated Edison, Inc. (Con Edison) (NYSE: ED) today reported net income for common stock for the first quarter of 2004 of $155 million or 69 cents a share, compared with earnings of $154 million or 72 cents a share for the first quarter of 2003. The company also declared a quarterly dividend of 561/2 cents a share on its common stock payable June 15, 2004 to stockholders of record as of May 12, 2004.

"Con Edison's performance for the first quarter represents a solid start for the year," said Eugene R. McGrath, chairman and chief executive officer. "The continuing economic recovery, coupled with anticipated new rates for Con Edison of New York's electric, gas and steam businesses, will further enhance the financial strength of the company."

The following table represents an analysis of the major factors affecting basic earnings per share for the first quarter of 2004 compared with 2003:

                                                              Earnings per
    Con Edison of New York:
       Impact of weather in 2004 on net revenues
        versus 2003 (estimated)                               $(0.02)
       Sales growth, normalized for weather (estimated)         0.03
       Regulatory accounting                                    0.04
       Lower operation and maintenance expense,
        principally corporate                                   0.01
       Increased pension & other post-retirement
        benefit costs                                          (0.01)
       Higher depreciation and property tax expense            (0.03)
       Other                                                    0.01
    Total Con Edison of New York                                0.03
    Orange and Rockland Utilities                              (0.01)
    Unregulated subsidiaries and parent company                (0.05)
    Total earnings per share variation                        $(0.03)

The earnings per share variations shown above reflect the dilutive effect of a higher weighted average number of common shares outstanding in the 2004 period (226 million shares) than in the 2003 period (214 million shares).

For Con Edison of New York, net revenues reflect 6 percent fewer heating degree days in the electric, gas and steam billing cycles in the first quarter of 2004 as compared with the 2003 period. Delivery volumes adjusted for weather and billing days more than offset the effect of the weather, with increases of 1.7 percent for electric, 0.9 percent for firm gas and 1.0 percent for steam.

Con Edison of New York's earnings variances reflect two significant factors. In 2003, provision was made for a refund to customers of electric earnings in excess of a targeted return, while there was no such provision in 2004. Higher depreciation and property taxes in 2004 reflect large continuing capital investment in energy delivery infrastructure.

Regulated utility construction expenditures for 2004 are estimated at $1.2 billion, the same level as 2003. A number of large construction projects are scheduled for completion this year, including three major substations that will be on line this summer to meet demand growth. While not entirely covered under current rate plans, the company expects Con Edison of New York's construction program to be fully reflected in rates to be set through its current gas and steam rate proceedings and its upcoming electric proceeding. Capital expenditures for Orange and Rockland were addressed in its 2003 rate proceedings.

The performance of the unregulated subsidiaries and parent in the first quarter of 2004 compared with the 2003 period reflects lower gross margins on electric sales and higher interest expense.

For the full year 2004, the company confirms its previous forecast of earnings in the range of $2.60 to $2.80 per share.

Con Edison has filed "shelf" Registration Statements on Form S-3 with the Securities and Exchange Commission covering $925 million of securities, including debt, preferred stock and common stock. In addition, Con Edison of New York and Orange and Rockland have filed registration statements covering $825 million and $200 million of their debt securities, respectively. The form and amount of securities to be issued by each of the companies will be determined as the companies continue to review their financing plans. The earnings forecast shown above does not reflect dilution from any common stock that may be issued in addition to ongoing issuances under the dividend reinvestment and employee stock plans.

Refer to the attachments to this press release for the condensed consolidated balance sheets at March 31, 2004 and December 31, 2003 and the consolidated income statements for the three months ended March 31, 2004 and 2003.

The press release contains forward-looking statements of future expectations. Actual results might differ materially from those projected because of factors such as those identified in reports the company has filed with the Securities and Exchange Commission.

Consolidated Edison, Inc. (NYSE: ED) is one of the nation's largest investor-owned energy companies, with $10 billion in annual revenues and approximately $21 billion in assets. The company provides a wide range of energy-related products and services to its customers through the following six subsidiaries: Consolidated Edison Company of New York, Inc., a regulated utility providing electric, gas, and steam service in 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 and 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 and service provider.

                          Consolidated Edison, Inc.
                    CONSOLIDATED BALANCE SHEET (Condensed)

                                      March 31, 2004         December 31, 2003
                                                 (Millions of Dollars)
        Utility plant - net               $14,487                     $14,284
        Non-utility plant - net               952                         941
    NET PLANT                              15,439                      15,225

    Cash and temporary cash investments        74                          67
    Accounts receivable - customers, less
     allowance for uncollectible accounts     795                         790
    Other receivables, less allowance for
     uncollectible accounts                   268                         184
    Inventories                               132                         133
    Prepayments                               282                          98
    Other current assets                      253                         320
    TOTAL CURRENT ASSETS                    1,804                       1,592

    INVESTMENTS                               250                         248

      Goodwill                                406                         406
      Intangible assets - net                 108                         111
      Prepaid pension costs                 1,303                       1,257
      Regulatory assets                     1,899                       1,861
      Other deferred charges and noncurrent
       assets                                 304                         266
     ASSETS AND NONCURRENT ASSETS           4,020                       3,901
    TOTAL ASSETS*                         $21,513                     $20,966

    * Con Edison is continuing to review whether, under FASB's revised
      Interpretation No. 46, "Consolidation of Variable Interest Entities"
      (FIN 46R), it will be required to deconsolidate its interest in a 237 MW
      facility located in Lakewood, New Jersey.

                          Consolidated Edison, Inc.
                    CONSOLIDATED BALANCE SHEET (Condensed)

                                      March 31, 2004         December 31, 2003
                                                 (Millions of Dollars)
      Common shareholders' equity          $6,491                      $6,423
      Preferred stock                         213                         213
      Long-term debt                        6,987                       6,733
    TOTAL CAPITALIZATION                   13,691                      13,369

      Provision for injuries and damages      202                         194
      Pension and retiree benefits            222                         205
      Superfund and other environmental
       costs                                  199                         193
      Other noncurrent liabilities
       including minority interest            149                         157
    TOTAL NONCURRENT LIABILITIES              772                         749

      Long-term debt due within one year       16                         166
      Notes payable                           394                         159
      Accounts payable                        964                         905
      Customer deposits                       227                         228
      Other current liabilities               342                         453
    TOTAL CURRENT LIABILITIES               1,943                       1,911

    Deferred income taxes and investment
     tax credits                            3,317                       3,172
    Regulatory liabilities and other
     deferred credits                       1,790                       1,765
     LIABILITIES                            5,107                       4,937
    TOTAL CAPITALIZATION AND LIABILITIES* $21,513                     $20,966

    * See footnote on page 1 of 2 of the Consolidated Balance Sheet.

                          CONSOLIDATED EDISON, INC.
              FOR THE THREE MONTHS ENDED MARCH 31, 2004 AND 2003

                                               2004                     2003
                                                    (Millions of Dollars)

    Operating revenues
      Electric                                $1,539                   $1,493
      Gas                                        645                      620
      Steam                                      235                      238
      Non-utility                                266                      219
       Total operating revenues                2,685                    2,570

    Operating expenses
      Purchased power                            931                      865
      Fuel                                       185                      185
      Gas purchased for resale                   400                      363
      Other operations and
       maintenance                               390                      389
      Depreciation and amortization              137                      129
      Taxes, other than income tax               282                      284
      Income tax                                 105                       98
       Total operating expenses                2,430                    2,313

    Operating income                             255                      257

    Other income (deductions)
      Investment and other income                 12                        5
      Allowance for equity funds
       used during construction                    6                        2
      Other deductions                            (3)                      (3)
      Income tax                                   2                        2
       Total other income (deductions)            17                        6

    Income before interest expense               272                      263

    Interest expense, net of amounts
     capitalized                                 114                      106
    Income before preferred stock dividends      158                      157
    Preferred stock dividend requirements          3                        3
    Net income for common stock                 $155                     $154

    Earnings per common share - Basic          $0.69                    $0.72

    Earnings per common share - Diluted        $0.68                    $0.72

    Average number of shares
     outstanding - Basic (in Millions)         226.2                    214.2
    Average number of shares
     outstanding - Diluted (in
     Millions)                                 227.5                    215.1

    Consolidated Edison, Inc. utility sales
    Electric (thousands of kilowatthours)
      Total energy delivered in
       service areas                      14,698,680               14,506,804
    Gas (dekatherms)
      Firm sales and transportation       57,260,948               59,382,894
    Steam (thousands of pounds)           10,613,568               10,672,089

SOURCE Consolidated Edison, Inc. -0- 04/22/2004 /CONTACT: Michael Clendenin of Consolidated Edison, Inc., +1-212-460-4111/ /Web site: (ED) CO: Consolidated Edison, Inc. ST: New York

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