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Consolidated Edison, Inc. Announces Financial Results for 1998
Consolidated Edison, Inc. today (TUESDAY, JANUARY 26, 1999) reported a 3.1 percent increase in earnings per share for 1998. The company also declared a dividend of 53 1/2 cents a share on its common stock payable March 15, 1999 to stockholders of record as of February 17, 1999, an increase of 1/2 cent over the previous quarterly dividend of 53 cents.

The company reported net income for common stock of $712.7 million in 1998 or $3.04 a share, compared with $694.5 million or $2.95 a share for 1997.

Net income for common stock for the fourth quarter of 1998 was $131.8 million or $.56 a share, compared with $139.1 million or $.59 a share for the fourth quarter of 1997.

The company's strong earnings for 1998 were the result of higher electric revenues from warmer than normal summer weather and the improving New York City economy, continued cost reduction programs and voluntary attrition in Con Edison's labor force. These enhancements to earnings were offset, in part, by expenses resulting from the extended maintenance outage at Indian Point 2 and by the implementation of the rate reductions required under the electric settlement agreement. Indian Point 2 was returned to service in September 1998.

Electric sales volume in 1998 was 3.1 percent higher than in 1997. Firm gas sales and transportation decreased 9.7 percent from the 1997 period and steam sales decreased 8.8 percent due primarily to warmer than normal winter weather. Under the current rate structure, most weather-related variations in firm gas sales do not affect earnings.

"We achieved many significant milestones in 1998," said Eugene R. McGrath, Chairman and Chief Executive Officer. "We formed Consolidated Edison, Inc. as the holding company for our regulated and unregulated subsidiaries, giving the company the flexibility it needs to succeed in the new competitive environment. In addition, we took an important step towards our long-term strategic objective of growing the regulated transmission and distribution business by entering into an agreement to acquire Orange and Rockland Utilities. We also contributed significantly to the development of a competitive energy marketplace by launching a very successful retail access program and by beginning the process of selling at auction our in-city electric generation."

"Our focus on shareholder value is evidenced by the continued growth in earnings and dividends," he continued. "The company's very sound financial position will serve as the foundation for dealing with the ongoing challenges and opportunities of industry restructuring in 1999 and beyond."

Consolidated Edison, Inc. is one of the nation's largest investor-owned energy companies, with more than $7 billion in annual revenues and $14 billion in assets. The company provides a wide range of energy-related products and services to its customers through its four subsidiaries: Consolidated Edison Company of New York, Inc. (Con Edison), a regulated utility providing electric, gas and steam service to New York City and Westchester County, New York; Con Edison Solutions, a retail energy services company; Con Edison Energy, a wholesale energy supply company; and Con Edison Development, an infrastructure-development company.


                                                Consolidated Edison, Inc.
                                             Selected Financial Information
                           for the Three Months Ended December 31, 1998 and 1997 

                                                    1998            1997
                                                   (Thousands of Dollars)

  Operating revenues                             $1,617,337      $1,745,171 
  Purchased power                                   248,984         345,570 
  Fuel                                              117,396         134,336 
  Gas purchased for resale                           99,737         148,682 
  Operating income                                  212,310         227,325 
  Net income for common stock                       131,831         139,076 
                                                                                
  Basic and diluted earnings per share                $0.56           $0.59 
  Dividends declared per common share                 $0.53          $0.525 

  Average common shares outstanding (000)           233,098         235,235 




                                                Consolidated Edison, Inc.
                                             Selected Financial Information
                           for the Twelve Months Ended December 31, 1998 and 1997 

 
                                                    1998            1997
                                                   (Thousands of Dollars)

  Operating revenues                             $7,093,048      $7,196,152 
  Purchased power                                 1,253,783       1,349,587  
  Fuel                                              579,006         596,824 
  Gas purchased for resale                          437,308         552,597 
  Operating income                                1,053,325       1,035,320 
  Net income for common stock                       712,742         694,479 

  Basic and diluted earnings per share                $3.04           $2.95 
  Dividends declared per common share                 $2.12           $2.10 

  Average common shares outstanding (000)           234,308         235,082 




                                                Consolidated Edison, Inc.
                                            Consolidated Income Statement
                           for the Three Months Ended December 31, 1998 and 1997 

                                                          1998          1997
                                                        (Thousands of Dollars)
Operating revenues
  Electric                                            $1,277,947    $1,352,112 
  Gas                                                    223,949       267,861 
  Steam                                                   66,185       100,091 
  Non-utility                                             49,256        25,107 
    Total operating revenues                           1,617,337     1,745,171 

Operating expenses
  Purchased power                                        248,984       345,570 
  Fuel                                                   117,396       134,336 
  Gas purchased for resale                                99,737       148,682 
  Other operations                                       319,475       285,143 
  Maintenance                                            111,470       107,537 
  Depreciation and amortization                          130,785       128,207 
  Taxes, other than federal income tax                   289,405       292,623 
  Federal income tax                                      87,775        75,748 
    Total operating expenses                           1,405,027     1,517,846 

Operating income                                         212,310       227,325 

Other income (deductions)                                                                                       
  Investment income                                        3,856         5,637 
  Allowance for equity funds used during construction        697           372 
  Other income less miscellaneous deductions              (4,465)       (2,859)
  Federal income tax                                       1,455        (1,042)
    Total other income                                     1,543         2,108 

Income before interest charges                           213,853       229,433 

Interest on long-term debt                                75,807        79,884 
Other interest                                             3,174         6,120 
Allowance for borrowed funds used during construction       (357)         (182)
  Net interest charges                                    78,624        85,822 

Preferred stock dividend requirements                      3,398         4,535 
Net income for common stock                          $   131,831   $   139,076 

Common shares outstanding - average (000)                233,098       235,235 
Basic and diluted earnings per share                 $      0.56   $      0.59 

Con Edison Sales
  Electric (Thousands of kilowatthours)
    Con Edison customers                               8,254,338     9,220,825 
    Delivery service to NYPA and others                3,361,893     2,231,903 
    Service for municipal agencies                       161,815       202,716 
      Total sales in service territory                11,778,046    11,655,444 
    Off-system and ESCO sales                          1,534,641       647,221 
  Gas (dekatherms)
    Firm sales and transportation                     20,204,423    24,240,455 
    Off-peak firm/interruptible                        3,459,219     6,343,995 
      Total sales to Con Edison customers             23,663,642    30,584,450 
    Transportation of customer-owned gas
      NYPA                                               605,657     2,691,027 
      Other                                            3,905,281     2,337,961 
    Off-system sales                                   8,368,549     4,014,910 
      Total sales and transportation                  36,543,129    39,628,348 
  Steam (Thousands of pounds)                          5,134,057     6,498,463 




                                                Consolidated Edison, Inc.
                                            Consolidated Income Statement
                           for the Twelve Months Ended December 31, 1998 and 1997 

                                                          1998          1997
                                                        (Thousands of Dollars)

Operating revenues
  Electric                                        $5,674,446        $5,635,575 
  Gas                                                959,609         1,093,880 
  Steam                                              321,932           391,799 
  Non-utility                                        137,061            74,898 
    Total operating revenues                       7,093,048         7,196,152 

Operating expenses
  Purchased power                                  1,253,783         1,349,587 
  Fuel                                               579,006           596,824 
  Gas purchased for resale                           437,308           552,597 
  Other operations                                 1,157,958         1,124,703 
  Maintenance                                        477,413           474,788 
  Depreciation and amortization                      518,514           503,455 
  Taxes, other than federal income tax             1,208,102         1,181,156 
  Federal income tax                                 407,639           377,722 
    Total operating expenses                       6,039,723         6,160,832 

Operating income                                   1,053,325         1,035,320 

Other income (deductions)
  Investment income                                   11,801            12,214 
  Allowance for equity funds used during construction  2,431             4,448 
  Other income less miscellaneous deductions         (14,212)           (4,100)
  Federal income tax                                   2,229            (1,998)
    Total other income                                 2,249            10,564 

Income before interest charges                     1,055,574         1,045,884 

Interest on long-term debt                           308,671           318,158 
Other interest                                        18,400            17,083 
Allowance for borrowed funds used during construction (1,246)           (2,180)
  Net interest charges                               325,825           333,061 

Preferred stock dividend requirements                 17,007            18,344 
Net income for common stock                      $   712,742       $   694,479 

Common shares outstanding - average (000)            234,308           235,082 
Basic and diluted earnings per share             $      3.04       $      2.95 

Con Edison Sales                                                                                        
  Electric (Thousands of kilowatthours)
    Con Edison customers                          36,374,017        37,527,979 
    Delivery service to NYPA and others           11,456,995         8,793,378 
    Service for municipal agencies                   814,575           845,895 
      Total sales in service territory            48,645,587        47,167,252 
    Off-system and ESCO sales                      3,955,096         2,499,587 
  Gas (dekatherms)
    Firm sales and transportation                 84,426,238        93,493,791 
    Off-peak firm/interruptible                   17,462,901        23,911,534 
      Total sales to Con Edison customers        101,889,139       117,405,325 
    Transportation of customer-owned gas
      NYPA                                         4,260,908        17,041,695 
      Other                                       14,478,269         7,656,874 
    Off-system sales                              25,982,200        13,958,984 
      Total sales and transportation             146,610,516       156,062,878 
  Steam (Thousands of pounds)                     24,995,694        27,422,561 


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