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Consolidated Edison, Inc. Announces The First Quarter Financial Earnings

Consolidated Edison, Inc. today (TUESDAY, APRIL 27, 1999) reported a 4.1 percent increase in earnings per share for the first quarter of 1999. The company also declared a dividend of 53 1/2 cents a share on its common stock payable June 15, 1999 to stockholders of record as of May 19, 1999.

The company’s net income for common stock for the first quarter of 1999 was $176.6 million or $.76 a share, compared with $171.9 million or $.73 a share for the first quarter of 1998.

The company also reported net income for common stock for the 12 months ended March 31, 1999 of $717.5 million or $3.08 a share, compared with $704.4 million or $2.99 a share for the 12 months ended March 31, 1998 and $3.04 a share for calendar year 1998.

The company’s strong earnings for the first quarter of 1999 were the result of higher electric sales growth, reflecting continued strength in the New York City economy, continued emphasis on cost reduction and the impact of the common stock repurchase program. These factors more than offset the rate reductions being implemented under the company’s five-year competition transition plan. Earnings for the 12-month period continue to be strong for the same reasons and also reflect higher electric net revenues from warmer than normal 1998 summer weather.

Through the end of the first quarter, Con Edison has repurchased 7 million shares amounting to about $330 million of its previously announced $1 billion stock repurchase program.

"In addition to the very encouraging trend in earnings, a number of other significant events occurred in the first quarter which will be of particular importance to the future prospects of the company,” said Eugene R. McGrath, Chairman and Chief Executive Officer. “The company completed very successful auctions of its New York City based electric generation at prices totaling more than $1.6 billion, or two times the net book value of the plants. The company also received approval from the state regulatory agencies to consummate the merger with Orange and Rockland Utilities. The closings for the sale of generation and the merger are both expected around mid-year. These two events, which are significant elements of the company’s strategic plan, represent important milestones for the company."

Electric sales volume in the first quarter of 1999 increased 3.9 percent from the 1998 period. Firm gas sales and transportation volume increased 11.4 percent and steam sales volume increased 13.7 percent from the 1998 period, due primarily to colder winter weather in 1999 as compared to 1998. Under the current rate structure, most weather-related variations in firm gas sales do not affect earnings.

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 five 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; 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.
                                             Selected Financial Information
                              for the Three Months Ended March 31, 1999 and 1998 

                                                    1999            1998
                                                   (Thousands of Dollars)

  Operating revenues                             $1,776,586      $1,853,047
  Purchased power                                   287,826         358,250
  Fuel                                              117,540         134,554
  Gas purchased for resale                          180,531         189,439
  Operating income                                  258,467         254,561
  Net income for common stock                       176,647         171,917

  Basic and diluted earnings per share               $ 0.76           $0.73
  Dividends declared per common share                $0.535           $0.53
                       
  Average common shares outstanding (000)           230,997         235,490




                                                Consolidated Edison, Inc.
                                             Selected Financial Information
                             for the Twelve Months Ended March 31, 1999 and 1998 

 
                                                    1999            1998
                                                   (Thousands of Dollars)

  Operating revenues                             $7,016,586      $7,133,644
  Purchased power                                 1,183,358       1,355,129
  Fuel                                              561,992         580,024
  Gas purchased for resale                          428,401         490,325
  Operating income                                1,057,232       1,043,000
  Net income for common stock                       717,473         704,392

  Basic and diluted earnings per share               $ 3.08          $ 2.99
  Dividends declared per common share                $2.125          $2.105

  Average common shares outstanding (000)           233,130         235,195




                                                Consolidated Edison, Inc.
                                            Consolidated Income Statement
                              for the Three Months Ended March 31, 1999 and 1998 

                                                     1999              1998
                                                     (Thousands of Dollars)
Operating revenues
  Electric                                        $1,193,500        $1,291,323
  Gas                                                381,342           399,170
  Steam                                              140,733           135,390
  Non-utility                                         61,011            27,164
    Total operating revenues                       1,776,586         1,853,047

Operating expenses
  Purchased power                                    287,826           358,250
  Fuel                                               117,540           134,554
  Gas purchased for resale                           180,531           189,439
  Other operations                                   291,972           275,830
  Maintenance                                        105,426           117,975
  Depreciation and amortization                      132,709           128,258
  Taxes, other than federal income tax               300,380           302,219
  Federal income tax                                 101,735            91,961
    Total operating expenses                       1,518,119         1,598,486

Operating income                                     258,467           254,561

Other income (deductions)
  Investment income                                    1,416             2,904
  Allowance for equity funds used during construction    972               512
  Other income less miscellaneous deductions            (367)             (503)
  Federal income tax                                    (220)             (979)
    Total other income                                 1,801             1,934

Income before interest charges                       260,268           256,495

Interest on long-term debt                            75,843            79,058
Other interest                                         4,834             1,247
Allowance for borrowed funds used during construction   (454)             (263)
  Net interest charges                                80,223            80,042

Preferred stock dividend requirements                  3,398             4,536
Net income for common stock                       $  176,647        $  171,917

Common shares outstanding - average (000)            230,997           235,490
Basic and diluted earnings per share              $     0.76        $     0.73

Con Edison Sales
  Electric (Thousands of kilowatthours)
    Con Edison customers                           8,406,243         9,030,401
    Delivery service for Retail Choice             1,049,068                 -
    Delivery service to NYPA and others            2,473,339         2,454,221
      Total sales in service territory            11,928,650        11,484,622
    Off-system and ESCO sales                      1,358,161           348,781
  Gas (dekatherms)
    Firm sales and transportation                 40,595,350        36,439,826
    Off-peak firm/interruptible                    5,163,556         7,540,851
      Total sales to Con Edison customers         45,758,906        43,980,677
    Transportation of customer-owned gas
      NYPA                                            15,953         1,083,613
      Other                                        6,801,098         3,587,326
    Off-system sales                               8,457,822         5,332,301
      Total sales and transportation              61,033,779        53,983,917
  Steam (Thousands of pounds)                     10,216,257         8,985,674




                                                Consolidated Edison, Inc.
                                            Consolidated Income Statement
                             for the Twelve Months Ended March 31, 1999 and 1998 

                                                          1999          1998
                                                        (Thousands of Dollars)
Operating revenues
  Electric                                            $5,576,622    $5,657,948
  Gas                                                    941,780     1,038,031
  Steam                                                  327,276       365,011
  Non-utility                                            170,908        72,654
    Total operating revenues                           7,016,586     7,133,644

Operating expenses
  Purchased power                                      1,183,358     1,355,129
  Fuel                                                   561,992       580,024
  Gas purchased for resale                               428,401       490,325
  Other operations                                     1,174,101     1,122,458
  Maintenance                                            464,863       478,600
  Depreciation and amortization                          522,962       507,921
  Taxes, other than federal income tax                 1,206,264     1,178,391
  Federal income tax                                     417,413       377,796
    Total operating expenses                           5,959,354     6,090,644

Operating income                                       1,057,232     1,043,000

Other income (deductions)
  Investment income                                       10,314        14,082
  Allowance for equity funds used during construction      2,891         3,161
  Other income less miscellaneous deductions             (14,079)       (4,082)
  Federal income tax                                       2,988        (2,674)
    Total other income                                     2,114        10,487

Income before interest charges                         1,059,346     1,053,487 

Interest on long-term debt                               305,455       318,464
Other interest                                            21,987        13,916
Allowance for borrowed funds used during construction     (1,438)       (1,561)
  Net interest charges                                   326,004       330,819

Preferred stock dividend requirements                     15,869        18,276
Net income for common stock                          $   717,473   $   704,392

Common shares outstanding - average (000)                233,130       235,195
Basic and diluted earnings per share                 $      3.08   $      2.99

Con Edison Sales
  Electric (Thousands of kilowatthours)
    Con Edison customers                              35,749,860    37,626,512
    Delivery service for Retail Choice                 3,466,389             -
    Delivery service to NYPA and others                9,873,366     9,658,101
      Total sales in service territory                49,089,615    47,284,613
    Off-system and ESCO sales                          4,964,476     2,536,590
  Gas (dekatherms)
    Firm sales and transportation                     88,581,762    90,659,667
    Off-peak firm/interruptible                       15,085,606    23,248,182
      Total sales to Con Edison customers            103,667,368   113,907,849
    Transportation of customer-owned gas
      NYPA                                             3,193,247    15,425,100
      Other                                           17,692,042     9,526,866
    Off-system sales                                  29,107,721    15,785,892
      Total sales and transportation                 153,660,378   154,645,707
  Steam (Thousands of pounds)                         26,226,277    26,267,547

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