Press Release

NEW YORK, Feb. 1 /PRNewswire/ -- Consolidated Edison Company of New York, Inc. (Con Edison) announced today that the company has proposed to the New York Public Service Commission (PSC) a plan to offer customers innovative energy efficiency and cost-saving programs beginning this summer.

"Our new programs will enable individual customers to manage their energy usage in response to market prices of electricity. Customers will save money. At the same time, by reducing energy demand at times of peak load, they will be helping to improve the supply and demand balance in the wholesale electric market," said Kevin Burke, president of Con Edison. "Our customers are critical partners in ensuring the success of the new programs, which should work to stabilize the price of energy supply."

The programs, designed for both commercial and residential customers, seek to reduce peak usage this summer season by as much as 70 megawatts, and by as much as 200 megawatts by 2003. Seventy megawatts is approximately equal to the energy needed to power about 70,000 homes. All programs are voluntary and offer incentives to customers to reduce energy consumption during periods of high electric usage.

Each program provides different energy saving opportunities for customers based on their individual usage needs. Once approved by the PSC, the program proposals will be implemented rapidly, in order to be in place prior to the peak summer season.

The program proposals will include:

The Emergency Demand Response Program

In the event of an electric supply emergency as defined by the New York State Independent System Operator (NYISO), customers enrolled in this program will receive a payment that reflects the actual price of electricity for reducing their energy usage.

Voluntary Real-Time Pricing Program

The Voluntary Real-Time Pricing (RTP) Program will provide day-ahead electric market prices to large customers. This will allow customers to voluntarily reduce their electric requirements in response to the projected prices for the next day. Customers will be charged for their actual hourly consumption based on hourly, day-ahead commodity prices.

Demand Bidding Program

The Demand Bidding Program offers incentives for smaller customers who voluntarily reduce their peak energy consumption. Con Edison will receive bids for demand reductions from participating customers in response to forecast electric prices from the day-ahead market and will accept bids based on system needs.

Direct Load Control Program

The Direct Control Load Program, available to small commercial and residential customers, will enable Con Edison to remotely control the operation of customer air conditioning systems in exchange for incentives.

Steam Air Conditioning Program

Discounted steam rates will be offered to customers as an incentive to use steam service instead of electric service for their air conditioning needs. The incentives will be offered to all customers within the geographical boundaries of the Con Edison steam system.

Con Edison is a subsidiary of Consolidated Edison, Inc., (NYSE: ED) one of the nation's largest investor-owned energy companies, with approximately $9 billion in annual revenues and $16 billion in assets. The utility provides electric, gas and steam service to more than three million customers in New York City and Westchester County, New York. For additional financial, operations and customer service information, visit Con Edison's web site at http://www.coned.com. SOURCE Consolidated Edison Company of New York, Inc.

CONTACT: D. Joy Faber of Consolidated Edison Company of New York, Inc., 212-460-4111/