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Con Edison Reports Solid Third Quarter Earnings; Expresses Confidence in Resilience of New York Economy

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NEW YORK, Oct 18, 2001 /PRNewswire via COMTEX/ -- Consolidated Edison, Inc. (NYSE: ED) today (THURSDAY, October 18, 2001) reported net income for common stock for the third quarter of 2001 of $277.3 million or $1.31 a share, compared with earnings of $279.9 million or $1.32 a share for the third quarter of 2000. The company also declared a quarterly dividend of 55 cents a share on its common stock payable December 15, 2001 to stockholders of record as of November 14, 2001.

"The overwhelming response of individuals, businesses, as well as government officials to the September 11th attacks on our city and our nation confirms our belief that the spirit and the economic base of New York are strong and resilient and that the economic effects of the attacks will be limited in scope and duration," said Chairman and Chief Executive Officer Eugene R. McGrath. "Con Edison and its 14,000 men and women will contribute their individual and corporate strengths to the restoration of our great City, while continuing to work hard for our investors."

The company's net income for common stock for the first nine months of 2001 was $557.1 million or $2.63 a share, compared with $536.8 million or $2.53 a share for the first nine months of 2000.

The company's net income for common stock for the 12 months ended September 30, 2001 was $603.2 million or $2.84 a share, compared with $658.3 million or $3.09 a share for the 12 months ended September 30, 2000.

Excluding non-recurring charges for the year 2000, earnings per share for the third quarter, first nine months and 12 months ended September 30, 2000 would have been $1.40, $2.71 and $3.27, respectively, while the earnings per share for the 12 months ended September 30, 2001 would have been $3.16.

The company's earnings for the third quarter and first nine months of 2001 reflect electric rate reductions for Con Edison of New York effective October 1, 2000 and April 1, 2001 in accordance with the company's 1997 and 2000 regulatory agreements. The impact of these reductions is being offset by higher electric and firm gas sales and increased pension credits.

Electric sales for Con Edison of New York, after excluding the effects of weather, increased by 3.0 percent for the first nine months of 2001 when compared to the prior year, and firm gas sales increased by 2.1 percent. The electric peak exceeded prior records on several days in 2001. On August 9, 2001, Con Edison reported all-time highs for energy demand when the electric peak load reached 12,207 megawatts. The previous record peak of 11,850 megawatts was reached on July 6, 1999.

Also, on July 25, hourly gas throughput on the Con Edison gas distribution system reached a new record of 58,759 dekatherms. On Thursday, August 9, a new summer total gas system daily delivery record of 1,077,858 dekatherms was achieved.

The attacks of September 11th destroyed or severely damaged a number of buildings in lower Manhattan. The electric peak of these buildings totaled approximately 140 MWs, which is about 1.1 percent of Con Edison's peak delivery load this past summer. The annual after-tax impact of the loss of electric, gas and steam services to these buildings is approximately $15 million.

In addition, two Con Edison electric substations were destroyed, and certain electric, gas and steam facilities were damaged. The estimated cost for the temporary restoration of service and for permanent restoration of the lower Manhattan systems to prior levels of reliability is approximately $400 million. Through September 30, $50 million of costs have been incurred, of which $12 million was charged to capital and $38 million of expenses were deferred. Almost all of the remaining amount to be spent will be capital investment. Con Edison is seeking Federal reimbursement for its response and recovery costs.

For the full year 2001, the company narrowed its forecast earnings range to $3.20 to $3.25 a share, reflecting the short-term economic impact of the September 11th attacks, partially offset by stringent cost controls.

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
                THREE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000

                                                 2001            2000
                                                (Thousands of Dollars)

    Operating revenues
         Electric                            $2,247,325      $2,328,220
         Gas                                    166,601         177,891
         Steam                                   78,703          82,837
         Non-utility                            200,241         231,831
                 Total operating
                  revenues                    2,692,870       2,820,779

    Operating expenses
         Purchased power                      1,160,150       1,218,017
         Fuel                                    88,207          95,977
         Gas purchased for resale                75,792         131,921
         Other operations                       258,485         263,463
         Maintenance                            101,128         114,971
         Depreciation and amortization          133,125         150,785
         Taxes, other than income tax           313,586         328,948
         Income tax                             176,152         131,824
                 Total operating
                  expenses                    2,306,625       2,435,906

    Operating income                            386,245         384,873

    Other income (deductions)
         Investment income                        3,080           1,520
         Allowance for equity funds used
          during construction                       286             542
         Other income less miscellaneous
          deductions                             (6,562)          6,682
         Income tax                               5,574          (2,076)
                 Total other income
                  (deductions)                    2,378           6,668

    Income before interest charges              388,623         391,541

    Interest on long-term debt                  100,587          95,399
    Other interest                                9,230          14,021
    Allowance for borrowed funds used
     during construction                         (1,934)         (1,148)
                 Net interest charges           107,883         108,272

    Net income                                  280,740         283,269
    Preferred stock dividend
     requirements                                 3,398           3,398
    Net income for common stock                $277,342        $279,871

    Common shares outstanding -
     average basic (000)                        212,206         211,974
    Common shares outstanding -
     average diluted (000)                      212,807         212,069

    Basic earnings per share                      $1.31           $1.32
    Diluted earnings per share                    $1.30           $1.32

    Consolidated Edison, Inc. Utility Sales
        Electric (thousands of kilowatthours)
              Total sales in service
               territory                     16,946,162      15,986,083
        Gas (dekatherms)
              Firm sales and
               transportation                13,943,830      14,432,740
        Steam (thousands of pounds)           5,846,306       5,500,759


                          CONSOLIDATED EDISON, INC.
                        CONSOLIDATED INCOME STATEMENT
                NINE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000

                                                 2001              2000
                                                 (Thousands of Dollars)

    Operating revenues
         Electric                            $5,486,648        $5,371,732
         Gas                                  1,173,814           894,380
         Steam                                  426,621           327,695
         Non-utility                            604,265           587,458
                 Total operating
                  revenues                    7,691,348         7,181,265

    Operating expenses
         Purchased power                      2,976,979         2,739,770
         Fuel                                   304,542           223,945
         Gas purchased for resale               712,914           562,533
         Other operations                       799,472           865,426
         Maintenance                            345,914           349,943
         Depreciation and amortization          404,991           439,125
         Taxes, other than income tax           878,056           893,280
         Income tax                             379,938           268,332
                 Total operating
                  expenses                    6,802,806         6,342,354

    Operating income                            888,542           838,911

    Other income (deductions)
         Investment income                        5,968             8,461
         Allowance for equity funds used
          during construction                       787               451
         Other income less miscellaneous
          deductions                            (18,451)            2,432
         Income tax                              12,727            (2,315)
                 Total other income
                  (deductions)                    1,031             9,029

    Income before interest charges              889,573           847,940

    Interest on long-term debt                  298,149           266,370
    Other interest                               29,254            38,558
    Allowance for borrowed funds used
     during construction                         (5,156)           (3,935)
                 Net interest charges           322,247           300,993

    Net income                                  567,326           546,947
    Preferred stock dividend
     requirements                                10,194            10,194
    Net income for common stock                $557,132          $536,753

    Common shares outstanding -
     average basic (000)                        212,119           212,240
    Common shares outstanding -
     average diluted (000)                      212,519           212,319

    Basic earnings per share                      $2.63             $2.53
    Diluted earnings per share                    $2.62             $2.53

    Consolidated Edison, Inc. Utility Sales
        Electric (thousands of kilowatthours)
              Total sales in service
               territory                     44,359,436        42,595,904
        Gas (dekatherms)
              Firm sales and
               transportation                96,158,100        92,310,670
        Steam (thousands of pounds)          21,036,158        20,392,813


                          CONSOLIDATED EDISON, INC.
                        CONSOLIDATED INCOME STATEMENT
               TWELVE MONTHS ENDED SEPTEMBER 30, 2001 AND 2000

                                                  2001              2000
                                                  (Thousands of Dollars)

    Operating revenues
         Electric                             $7,066,607        $6,802,708
         Gas                                   1,541,403         1,168,993
         Steam                                   551,061           407,303
         Non-utility                             808,792           691,369
                 Total operating
                  revenues                     9,967,863         9,070,373

    Operating expenses
         Purchased power                       3,916,015         3,347,201
         Fuel                                    402,699           304,627
         Gas purchased for resale                957,165           707,927
         Other operations                      1,083,912         1,172,056
         Maintenance                             454,017           449,736
         Depreciation and amortization           552,272           564,445
         Taxes, other than income tax          1,105,056         1,169,890
         Income tax                              430,960           327,524
                 Total operating
                  expenses                     8,902,096         8,043,406

    Operating income                           1,065,767         1,026,967

    Other income (deductions)
         Investment income                         5,983            13,803
         Allowance for equity funds used
          during construction                      1,635             1,493
         Other income less miscellaneous
          deductions                             (53,533)          (10,764)
         Income tax                               25,664            29,783
                 Total other income
                  (deductions)                   (20,251)           34,315

    Income before interest charges             1,045,516         1,061,282

    Interest on long-term debt                   395,774           349,602
    Other interest                                40,231            44,252
    Allowance for borrowed funds used
     during construction                          (7,297)           (4,481)
                 Net interest charges            428,708           389,373

    Net income                                   616,808           671,909
    Preferred stock dividend
     requirements                                 13,593            13,593
    Net income for common stock                 $603,215          $658,316

    Common shares outstanding -
     average basic (000)                         212,091           213,372
    Common shares outstanding -
     average diluted (000)                       212,450           213,505

    Basic earnings per share                       $2.84             $3.09
    Diluted earnings per share                     $2.84             $3.08

    Consolidated Edison, Inc. Utility Sales
        Electric (thousands of kilowatthours)
              Total sales in service
               territory                      58,219,869        55,939,459
        Gas (dekatherms)
              Firm sales and
               transportation                129,678,073       121,031,540
        Steam (thousands of pounds)           27,376,605        25,826,562

SOURCE Consolidated Edison, Inc.

CONTACT: Michael Clendenin of Consolidated Edison, Inc., +1-212-460-4111 URL: http://www.conedison.com

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