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Con Edison, Inc. Reports Second Quarter Earnings
Company Reaffirms 2003 Earnings Projection

NEW YORK, Jul 17, 2003 /PRNewswire-FirstCall via COMTEX/ -- Consolidated Edison, Inc. (NYSE: ED) today reported net income for common stock for the second quarter of 2003 of $66 million or 29 cents a share, compared with earnings of $98 million or 46 cents a share, for the second quarter of 2002. The company also declared a quarterly dividend of 56 cents a share on its common stock payable September 15, 2003 to stockholders of record as of August 13, 2003.

"Our energy delivery systems continue to perform very well," said Eugene R. McGrath, Chairman and Chief Executive Officer. "Our earnings were impacted by the unseasonably cool spring weather. We see continued growth in demand for our services, and on June 26, we set a new all-time electric peak load for that month."

The company's net income for common stock for the first six months of 2003 was $220 million or $1.01 a share, compared with $244 million or $1.14 a share for the first six months of 2002. Net income for the 2002 period includes a one-time goodwill impairment charge of $20 million after-tax, related to certain unregulated generating assets. Excluding this non-cash charge, net income for the first six months of 2002 was $264 million or $1.24 a share.

The company's earnings for the second quarter of 2003 were negatively affected by lower electric deliveries related to the exceptionally cool weather. For the first six months of 2003, this reduction partially offset the positive impact of increased energy sales in the first quarter, as compared with the corresponding 2002 period, related to colder than normal winter weather. In addition, earnings for both 2003 periods were impacted by a reduction in net credits for pension and other post-retirement benefits as compared with 2002.

For the three months ended June 30, 2003, amounts of electricity, gas and steam delivered by Con Edison of New York, after adjusting for variations in weather and billing days in the period increased 0.3 percent, 0.5 percent and 1.3 percent, respectively, as compared to the 2002 period.

For the first six months of 2003, amounts of electricity, gas and steam delivered by Con Edison of New York, after adjusting for variations in weather and billing days in the period, increased 1.7 percent, 2.3 percent and 1.0 percent, respectively, as compared to the 2002 period.

For the full year 2003, the company reaffirms its previous forecast of earnings in the range of $2.82 to $2.97 per share.

The following table represents an analysis of the major factors affecting earnings per share for the second quarter of 2003 compared with 2002:

                                                                Earnings
    2nd Quarter 2003 Compared With 2002                        Per Share ($)

    Con Edison of New York:
      Impact of weather in 2003 on net revenues
       versus 2002 (estimated)                                  $(0.06)
      Sales growth from factors other than weather
       (estimated)                                                0.03
      Reduced net credit for pensions & other
       post-retirement benefits                                  (0.08)
      Higher depreciation and property tax expense               (0.03)
      Other                                                      (0.02)
    Total Con Edison of New York                                 (0.16)
    Orange & Rockland Utilities                                  (0.02)
    Unregulated subsidiaries and parent company                   0.01

    Total                                                       $(0.17)

The following table represents an analysis of the major factors affecting earnings per share for year-to-date 2003 compared with 2002:

                                                                Earnings
    Year-to-Date 2003 Compared With 2002                       Per Share ($)

    Con Edison of New York:
      Impact of weather in 2003 on net revenues
       versus 2002 (estimated)                                   $0.07
      Sales growth from factors other than weather
       (estimated)                                                0.08
      Reduced net credit for pensions & other
       post-retirement benefits                                  (0.15)
      Regulatory accounting/amortizations                        (0.07)
      Higher depreciation and property tax expense               (0.06)
      Amortization of divestiture gain in the
       first quarter of 2002                                     (0.06)
      Other                                                      (0.04)
    Total Con Edison of New York                                 (0.23)
    Orange & Rockland Utilities                                     --
    Unregulated subsidiaries and parent company                     --
    Cumulative effect of change in accounting principle
     for goodwill impairment in 2002                              0.10

    Total                                                       $(0.13)

During the second quarter of 2003, the company issued 9,570,000 shares of common stock under a public offering, resulting in net proceeds of $378 million.

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. is one of the nation's largest investor-owned energy companies, with $9 billion in annual revenues and approximately $19 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 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 INCOME STATEMENT
              FOR THE THREE MONTHS ENDED JUNE 30, 2003 AND 2002
                                 (Unaudited)

                                                       2003             2002
                                                       (Millions of Dollars)

    Operating revenues
         Electric                                     $1,561           $1,400
         Gas                                             326              242
         Steam                                            96               71
         Non-utility                                     192              136
            Total operating revenues                   2,175            1,849

    Operating expenses
         Purchased power                                 906              702
         Fuel                                            102               47
         Gas purchased for resale                        192              119
         Other operations                                279              231
         Maintenance                                      91               99
         Depreciation and amortization                   130              121
         Taxes, other than income tax                    270              269
         Income tax                                       41               61
            Total operating expenses                   2,011            1,649

    Operating income                                     164              200

    Other income (deductions)
         Investment income                                 2               --
         Allowance for equity funds used
          during construction                              4                2
         Other income                                      6                8
         Other Income deductions                          (5)              (6)
         Income tax                                        2                2
            Total other income (deductions)                9                6

    Income before interest charges                       173              206

    Interest on long-term debt                            99               99
    Other interest                                         8                8
    Allowance for borrowed funds used
     during construction                                  (3)              (2)
            Net interest charges                         104              105
    Preferred stock dividend requirements                  3                3
    Net income for common stock                           66               98

    Earnings per common share - Basic                  $0.29            $0.46

    Earnings per common share - Diluted                $0.29            $0.46

    Average number of shares outstanding
     - Basic (in Millions)                             219.3            212.8
    Average number of shares outstanding
     - Diluted (in Millions)                           220.3            213.9

    Consolidated Edison, Inc. utility sales
    Electric (thousands of kilowatthours)
         Total energy delivered in
          service areas                           13,320,730       13,717,590
    Gas (dekatherms)
         Firm sales and transportation            24,568,979       22,162,986
         Off-system sales                            339,201        2,666,228
    Steam (thousands of pounds)                    4,435,485        4,481,538


                          CONSOLIDATED EDISON, INC.
                        CONSOLIDATED INCOME STATEMENT
               FOR THE SIX MONTHS ENDED JUNE 30, 2003 AND 2002
                                 (Unaudited)

                                                       2003             2002
                                                       (Millions of Dollars)

    Operating revenues
         Electric                                     $3,054           $2,701
         Gas                                             946              716
         Steam                                           334              212
         Non-utility                                     412              276
            Total operating revenues                   4,746            3,905

    Operating expenses
         Purchased power                               1,770            1,370
         Fuel                                            287              112
         Gas purchased for resale                        556              350
         Other operations                                575              468
         Maintenance                                     184              198
         Depreciation and amortization                   259              243
         Taxes, other than income tax                    554              536
         Income tax                                      141              170
            Total operating expenses                   4,326            3,447

    Operating income                                     420              458

    Other income (deductions)
         Investment income                                 2                1
         Allowance for equity funds
          used during construction                         6                6
         Other income                                     12               15
         Other Income deductions                          (8)             (15)
         Income tax                                        3               16
            Total other income (deductions)               15               23

    Income before interest charges                       435              481

    Interest on long-term debt                           198              193
    Other interest                                        16               19
    Allowance for borrowed funds used
     during construction                                  (5)              (2)
            Net interest charges                         209              210
    Preferred stock dividend requirements                  6                7
    Net income before cumulative effect
     of a change in accounting principle                 220              264
    Cumulative effect of a change in
     accounting principle (net of income
     tax of $14 million)                                  --               20
    Net income for common stock                          220              244

    Earnings per common share - Basic
    Before cumulative effect of a
     change in accounting principle                    $1.01            $1.24
    Cumulative effect of a change in
     accounting principle                              $  --            $0.10
    After cumulative effect of a change
     in accounting principle                           $1.01            $1.14

    Earnings per common share - Diluted
    Before cumulative effect of a
     change in accounting principle                    $1.01            $1.24
    Cumulative effect of a change in
     accounting principle                              $  --            $0.10
    After cumulative effect of a change
     in accounting principle                           $1.01            $1.14

    Average number of shares
     outstanding - Basic (in Millions)                 217.1            212.5
    Average number of shares
     outstanding - Diluted (in Millions)               218.0            213.7

    Consolidated Edison, Inc. utility sales
    Electric (thousands of kilowatthours)
         Total energy delivered in
          service areas                           27,814,643       27,246,570
    Gas (dekatherms)
         Firm sales and transportation            83,951,874       68,416,623
         Off-system sales                            597,640        8,969,853
    Steam (thousands of pounds)                   15,107,574       12,417,347

SOURCE Consolidated Edison, Inc.

Chris Olert, +1-212-460-4111, for Consolidated Edison, Inc.

http://www.coned.com

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