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Con Edison, Inc. Reports Second Quarter Earnings and Declares Dividend

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NEW YORK, Jul 18, 2002 /PRNewswire-FirstCall via COMTEX/ -- Consolidated Edison, Inc. (NYSE: ED) today (THURSDAY, JULY 18, 2002) reported net income for common stock for the second quarter of 2002 of $97.6 million or $.46 a share, compared with earnings of $100.7 million or $.48 a share for the second quarter of 2001. The company also declared a quarterly dividend of 55-1/2 cents a share on its common stock payable September 15, 2002 to stockholders of record as of August 14, 2002. Con Edison has raised its annual dividend level each year for the past 28 years, most recently in January 2002.

"Our energy delivery systems are performing very well, the outlook for the regional economy is good, and we continue to make the investments in our system that will keep the system robust and ready to meet the growing energy needs of New York with the highest level of reliability," said Eugene R. McGrath, Chairman and Chief Executive Officer. "Thanks to the dedication and skill of our operating forces, we have completed the rebuilding of one of the substations we lost on September 11, as well as the related lower Manhattan energy distribution networks, and have begun rebuilding the remaining facilities."

The company's net income for common stock for the first six months of 2002 was $264.2 million or $1.24 a share, compared with $279.8 million or $1.32 a share for the first six months of 2001. The company's earnings are generated substantially from its core regulated transmission and distribution business.

The company's net income for common stock for the 12 months ended June 30, 2002 was $666.6 million or $3.14 a share, compared with $605.7 million or $2.86 a share for the 12 months ended June 30, 2001. Absent the effect of previously reported non-recurring charges in 2000 for nuclear replacement power and merger-related costs, earnings for the 12 months ended June 30, 2001 would have been $691.5 million or $3.26 a share.

The company's earnings for the second quarter and first six months of 2002 reflect the impact of the unusually mild winter and spring weather and softness in the economy, partially offset by lower operating expenses. After adjusting for variations in weather and billing days in each period, electric, firm gas, and steam delivered by Con Edison of New York decreased by 0.1 percent, 0.1 percent, and 4.4 percent respectively, for the first six months of 2002 when compared to the prior year. The impact on earnings of the late June and early July heat waves will be reflected in third quarter earnings.

The Financial Accounting Standards Board has changed the accounting for goodwill, and the company has modified its accounting to meet this new standard. Based on reviews conducted in accordance with SFAS No. 142, "Goodwill and Other Intangible Assets," the company expects to record in 2002 a non-cash impairment charge of approximately $20 million after tax in relation to certain generating assets owned by Con Edison Development.

The company is currently forecasting its earnings range for 2002 to be $3.10 to $3.20 per share, excluding the goodwill adjustment. The primary cause of the modest reduction in earnings expectations from prior forecasts is the impact of the extremely mild weather during the first half of the year, particularly on steam sales.

This 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 approximately $10 billion in annual revenues and $17 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
              FOR THE THREE MONTHS ENDED JUNE 30, 2002 AND 2001

                                                     2002            2001
                                                      (Thousands of Dollars)

    Operating revenues
     Electric                                     $1,400,045     $1,531,949
     Gas                                             242,355        305,394
     Steam                                            70,488         89,666
     Non-utility                                     187,351        185,206
      Total operating revenues                     1,900,239      2,112,215

    Operating expenses
     Purchased power                                 752,587        766,678
     Fuel                                             46,749         57,230
     Gas purchased for resale                        119,220        197,979
     Other operations                                230,496        278,123
     Maintenance                                      98,863        116,340
     Depreciation and amortization                   122,126        136,782
     Taxes, other than income tax                    269,253        256,661
     Income tax                                       60,927         86,600
      Total operating expenses                     1,700,221      1,896,393

    Operating income                                 200,018        215,822

    Other income (deductions)
     Investment income                                   403          1,840
     Allowance for equity funds used during
      construction                                     1,915            258
     Other income less miscellaneous deductions        2,229        (9,191)
     Income tax                                        1,975          1,552
      Total other income (deductions)                  6,522        (5,541)

    Income before interest charges                   206,540        210,281

    Interest on long-term debt                        98,994         98,355
    Other interest                                     8,205          9,536
    Allowance for borrowed funds used
     during construction                             (1,637)        (1,684)
      Net interest charges                           105,562        106,207

    Net income                                       100,978        104,074
    Preferred stock dividend requirements              3,398          3,398
    Net income for common stock                      $97,580       $100,676

    Common shares outstanding
     - average basic (000)                           212,757        212,115
    Common shares outstanding
     - average diluted (000)                         213,931        212,555

    Basic earnings per share                           $0.46          $0.48
    Diluted earnings per share                         $0.46          $0.48
    Dividends declared per share of common stock      $0.550         $0.545

    Consolidated Edison, Inc. utility sales
    Electric (thousands of kilowatthours)
     Total energy delivered in service areas      13,728,762     13,463,083
     Off-system and ESCO sales                             -             16
    Gas (dekatherms)
     Firm sales and transportation                22,182,909     23,011,021
     Off-system sales                              2,695,480        328,437
    Steam (thousands of pounds)                    4,481,538      4,707,156



                          CONSOLIDATED EDISON, INC.
                        CONSOLIDATED INCOME STATEMENT
               FOR THE SIX MONTHS ENDED JUNE 30, 2002 AND 2001

                                                     2002             2001
                                                      (Thousands of Dollars)

    Operating revenues
     Electric                                     $2,700,892    $ 3,239,323
     Gas                                             716,219      1,007,213
     Steam                                           211,954        347,918
     Non-utility                                     370,313        404,024
      Total operating revenues                     3,999,378      4,998,478

    Operating expenses
     Purchased power                               1,466,083      1,775,284
     Fuel                                            111,292        241,288
     Gas purchased for resale                        349,374        655,168
     Other operations                                467,095        539,531
     Maintenance                                     198,571        244,786
     Depreciation and amortization                   242,569        271,866
     Taxes, other than income tax                    536,484        564,469
     Income tax                                      170,471        203,772
      Total operating expenses                     3,541,939      4,496,164

    Operating income                                 457,439        502,314

    Other income (deductions)
     Investment income                                 1,105          4,623
     Allowance for equity funds used during
      construction                                     6,121            501
     Other income less miscellaneous deductions          501       (13,626)
     Income tax                                       16,067          7,138
      Total other income (deductions)                 23,794        (1,364)

    Income before interest charges                   481,233        500,950

    Interest on long-term debt                       193,190        197,562
    Other interest                                    18,768         20,023
    Allowance for borrowed funds used
     during construction                             (1,707)        (3,221)
      Net interest charges                           210,251        214,364

    Net income                                       270,982        286,586
    Preferred stock dividend requirements              6,796          6,796
    Net income for common stock                     $264,186       $279,790

    Common shares outstanding
     - average basic (000)                           212,546        212,078
    Common shares outstanding
      - average diluted (000)                        213,677        212,440

    Basic earnings per share                           $1.24          $1.32
    Diluted earnings per share                         $1.24          $1.32
    Dividends declared per share of common stock      $0.550         $0.545

    Consolidated Edison, Inc. utility sales
    Electric (thousands of kilowatthours)
     Total energy delivered in service areas      27,270,029     27,472,944
     Off-system and ESCO sales                        18,332        392,924
    Gas (dekatherms)
     Firm sales and transportation                68,389,809     79,010,519
     Off-system sales                              9,001,338      2,821,056
    Steam (thousands of pounds)                   12,417,347     15,189,852



                          CONSOLIDATED EDISON, INC.
                        CONSOLIDATED INCOME STATEMENT
              FOR THE TWELVE MONTHS ENDED JUNE 30, 2002 AND 2001

                                                     2002            2001
                                                     (Thousands of Dollars)

    Operating revenues
     Electric                                     $6,349,433     $7,147,502
     Gas                                           1,174,963      1,552,693
     Steam                                           367,771        555,195
     Non-utility                                     742,694        840,383
      Total operating revenues                     8,634,861     10,095,773

    Operating expenses
     Purchased power                               3,304,749      3,977,364
     Fuel                                            263,834        410,469
     Gas purchased for resale                        572,212      1,009,812
     Other operations                                988,087      1,088,890
     Maintenance                                     384,075        467,860
     Depreciation and amortization                   496,825        569,933
     Taxes, other than income tax                  1,111,245      1,120,417
     Income tax                                      431,237        386,633
      Total operating expenses                     7,552,264      9,031,378

    Operating income                               1,082,597      1,064,395

    Other income (deductions)
     Investment income                                 7,845          4,423
     Allowance for equity funds used
      during construction                              6,901          1,890
     Other income less miscellaneous deductions     (21,196)       (40,289)
     Income tax                                       30,851         18,015
      Total other income (deductions)                 24,401       (15,961)

    Income before interest charges                 1,106,998      1,048,434

    Interest on long-term debt                       392,577        390,586
    Other interest                                    40,567         45,022
    Allowance for borrowed funds used
     during construction                             (6,376)        (6,511)
      Net interest charges                           426,768        429,097

    Net income                                       680,230        619,337
    Preferred stock dividend requirements             13,593         13,593
    Net income for common stock                     $666,637       $605,744

    Common shares outstanding
     - average basic (000)                           212,393        212,034
    Common shares outstanding
     - average diluted (000)                         213,461        212,307

    Basic earnings per share                           $3.14          $2.86
    Diluted earnings per share                         $3.13          $2.85
    Dividends declared per share of common stock      $0.550        $ 0.545

    Consolidated Edison, Inc. utility sales
    Electric (thousands of kilowatthours)
     Total energy delivered in service areas      58,095,364     57,364,765
     Off-system and ESCO sales                       122,333      2,108,506
    Gas (dekatherms)
     Firm sales and transportation               105,804,230    123,442,694
     Off-system sales                             14,913,634     11,829,682
    Steam (thousands of pounds)                   22,555,189     27,031,058

SOURCE Consolidated Edison, Inc.

CONTACT: Michael Clendenin of Consolidated Edison, +1-212-460-4111

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