SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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Form 8-K
Current Report
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report: April 30, 2004
Commission Exact name of registrant as specified in its charter State of I.R.S. Employer
File Number and principal office address and telephone number Incorporation I.D. Number
1-14514 Consolidated Edison, Inc. New York 13-3965100
4 Irving Place, New York, New York 10003
(212) 460-4600
1-1217 Consolidated Edison Company of New York, Inc. New York 13-5009340
4 Irving Place, New York, New York 10003
(212) 460-4600
INFORMATION TO BE INCLUDED IN THE REPORT
ITEM 5. OTHER EVENTS AND REGULATION FD DISCLOSURE
On April 30, 2004, Consolidated Edison Company of New York, Inc. (Con Edison of
New York), a regulated utility subsidiary of Consolidated Edison, Inc. (Con
Edison) filed a request with the New York State Public Service Commission (PSC)
to increase charges for electric service by $550 million (6.7 percent increase),
effective April 2005.
The filing with the PSC reflects a return on equity of 12 percent and an equity
ratio of 48.8 percent. The filing includes a proposal for a multi-year rate plan
to continue the proposed level of charges through March 2008 provided that
charges would be adjusted, effective April 2006 and April 2007, to reflect
additions to utility plant in service, property taxes, changes in pension and
retiree health expense, and the impact, if any, of reconciling certain cost
elements from the prior rate year.
In addition, the filing would continue the provisions pursuant to which fuel and
purchased power costs are recovered from customers on a current basis.
Con Edison and Con Edison of New York are continuing a review of their financing
plans, which may include an issuance of Con Edison common stock. The review,
which may be completed in the near term, involves the consideration of various
factors, including the electric rate proceeding initiated by the filing
discussed above, the Con Edison of New York gas and steam rate proceedings
initiated in November 2003 and the capital expenditures of more than a $1
billion a year that Con Edison of New York expects to continue to make for the
next few years. Con Edison has registered $925 million of securities, including
debt, preferred stock and common stock, for sale under the Securities Act of
1933 pursuant to "shelf" Registration Statements on Form S-3. Con Edison of New
York has registered $825 million of its debt securities.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
99. Information Sheet for Electric Rate Case Filing
ITEM 9. REGULATION FD DISCLOSURE
The material attached hereto as Exhibit 99, which is incorporated in this Item 9
by reference thereto, is furnished pursuant to Regulation FD.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
each registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
CONSOLIDATED EDISON, INC.
CONSOLIDATED EDISON COMPANY
OF NEW YORK, INC.
By /s/ EDWARD J. RASMUSSEN
Edward J. Rasmussen
Vice President and Controller
DATE: April 30, 2004
Consolidated Edison, Inc.
Information Sheet for Electric Rate Case Filing
Reasons for the filing
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o The rate increase will enable Con Edison to maintain the financial
strength and flexibility it needs to continue to provide the highest
levels of service reliability to the residents and businesses of New
York City and Westchester County.
o The New York metropolitan area is particularly dependent on a reliable
supply of electricity for transportation, water, cooling and other
basic requirements in this densely populated environment
o Demand for electricity has been increasing steadily as the population
of New York grows and enhanced technology enables the use of new and
varied electronic devices.
o Con Edison is investing heavily in the electric infrastructure in order
to meet the growing needs of residents and businesses and support
future economic growth in the region. Almost $1 billion per year will
be invested in electric transmission and distribution over the next 5
years.
o The proposed rate increase will enable Con Edison to access the capital
markets to raise the funds it requires at a low overall cost to
consumers.
Details of filing
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o First rate increase request in 10 years
o Rates have been reduced 7 times during last 10 years
o Effective date of new rates -- April 2005
o Rates based on future test year -- 12 months ending 3/31/06
o Historic test year -- 12 months ended December 31, 2003
o Proposed rate increase effective April 2005 -- $550 million (+6.7%)
o 2nd and 3rd stage increases effective April 2006 and April 2007
(estimated at $175 million and $290 million, respectively)
to cover:
o Capital additions;
o Property taxes;
o Pensions and retiree health expenses; and
o The impact, if any, of reconciling certain costs elements
from the prior rate year.
o Continued flow through of fuel and purchased power costs
o Return on equity requested -- 12.0%
o Equity ratio reflected in rate year -- 48.8%
True-up reconciliations requested
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o Pensions and retiree health
o Property taxes
o Major unanticipated capital expenditures
o Environmental remediation
o Interest rates
o Interference costs
o World Trade Center costs
o Inflation > 4%
Major components of proposed electric rate increase
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o Plant additions -- $264 million
o Property taxes -- $206 million
o Return on equity -- $122 million
o Pension and benefit costs -- $73 million
o New programs to support electric infrastructure and other cost
increases -- $61 million
o Deferred ratepayer credits -- ($176 million)
4-30-04