PRINCIPAL NON-CASH CHARGES/(CREDITS) TO INCOME

$ 1,003

$ 879

$ 1,207

Rate case amortization and accruals

840

791

717

Deferred income taxes

659

436

470

(63)

(176)

Net transmission and distribution reconciliation

(50)

Common equity component of allowance for funds used during construction

(15)

(14)

(8)

Net derivative (gains)/losses

(19)

(31)

100

Pre-tax gain on sale of electricity generating plants

(704)

Other non-cash items (net)

(18)

(77)

(83)

CHANGES IN ASSETS AND LIABILITIES

Accounts receivable - customers, less allowance for uncollectibles

(126)

Materials and supplies, including fuel oil and gas in storage

161

(111)

Other receivables and other current assets

207

(346)

(110)

Prepayments

(210)

566

(578)

Recoverable energy costs

124

Accounts payable

(22)

(18)

(92)

Pensions and retiree benefits

(14)

Accrued taxes

(6)

Accrued interest

(1)

(10)

Deferred charges, noncurrent assets and other regulatory assets

(590)

112

(443)

Deferred credits and other regulatory liabilities

(23)

303

Other assets

(9)

(5)

121

Other liabilities

466

(40)

(104)

NET CASH FLOWS FROM OPERATING ACTIVITIES

2,381

2,466

640

INVESTING ACTIVITIES

Utility construction expenditures

(2,001)

(2,184)

(2,322)

Cost of removal less salvage

(149)

(181)

(198)

Non-utility construction expenditures

(28)

(9)

(4)

Common equity component of allowance for funds used during construction

Proceeds from sale of electricity generation projects

1,477

Purchase of additional ownership interest in Honeoye Storage Corporation

(12)

Purchase of ownership interest in Hawkeye lease

(12)

Purchase of ownership interest in Newington SCS

(20)

NET CASH FLOWS USED IN INVESTING ACTIVITIES

(2,175)

(2,360)

(1,071)

FINANCING ACTIVITIES

(363)

(477)

Issuance of long-term debt

(1,011)

(662)

(487)

1,095

1,470

1,850

Issuance of common stock

439

257

Debt issuance costs

(11)

(10)

(13)

Preferred stock dividends

(629)

(601)

(618)

(11)

CASH AND TEMPORARY CASH INVESTMENTS:

(128)

295

186

(136)

260

210

Cash paid/(refunded) during the period for:

338

260

Interest

583

558

557

Income taxes

(25)

394

CECONY [Member]

OPERATING ACTIVITIES

PRINCIPAL NON-CASH CHARGES/(CREDITS) TO INCOME

904

792

794

Rate case amortization and accruals

787

744

672

Deferred income taxes

622

364

500

(63)

(176)

Net transmission and distribution reconciliation

(50)

Common equity component of allowance for funds used during construction

(13)

(12)

(7)

Other non-cash items (net)

(12)

(56)

(33)

CHANGES IN ASSETS AND LIABILITIES

Accounts receivable - customers, less allowance for uncollectibles

(121)

Materials and supplies, including fuel oil and gas in storage

133

(91)

Other receivables and other current assets

(122)

(195)

Prepayments

456

(457)

Recoverable energy costs

111

Accounts payable

(17)

(118)

Pensions and retiree benefits

(16)

Accrued taxes

(16)

Accrued interest

(7)

(3)

Deferred charges, noncurrent assets and other regulatory assets

(535)

(374)

Deferred credits and other regulatory liabilities

(25)

280

Other liabilities

418

(62)

(19)

NET CASH FLOWS FROM OPERATING ACTIVITIES

2,205

2,222

1,036

INVESTING ACTIVITIES

Utility construction expenditures

(1,866)

(2,057)

(2,202)

Cost of removal less salvage

(145)

(176)

(195)

Common equity component of allowance for funds used during construction

Loan to affiliate

113

(58)

NET CASH FLOWS USED IN INVESTING ACTIVITIES

(1,998)

(2,108)

(2,448)

FINANCING ACTIVITIES

(253)

(302)

Issuance of long-term debt

(850)

(655)

(280)

925

1,350

1,800

Debt issuance costs

(9)

(10)

(13)

Capital contribution by parent

355

211

752

Preferred stock dividends

(670)

^[1]

(652)

^[1]

(618)

^[1]

(11)

CASH AND TEMPORARY CASH INVESTMENTS:

(260)

(20)

1,328

(53)

(84)

131

121

Cash paid/(refunded) during the period for:

131

Interest

528

513

473

Income taxes

$ (18)

$ 18

$ (1)

[1]	These financial statements, in which Con Edison's subsidiaries have been included using the equity method, should be read together with its consolidated financial statements and the notes thereto appearing above.

Consolidated Balance Sheet (USD $) In Millions, unless otherwise specified	Dec. 31, 2010	Dec. 31, 2009
CURRENT ASSETS
Regulatory assets	$ 7,846	$ 7,275
UTILITY PLANT, AT ORIGINAL COST
Less: Accumulated depreciation	838
Net	23,794	22,439
Construction work in progress	1,458	1,421
OTHER NONCURRENT ASSETS
Regulatory assets	7,643	7,103
DEFERRED CREDITS AND REGULATORY LIABILITIES
Regulatory liabilities	915	829
CONSOLIDATED EDISON INC [Member]
CURRENT ASSETS
Cash and temporary cash investments	338	260
Accounts receivable - customers, less allowance for uncollectible accounts	1,173	1,047
Accrued unbilled revenue	633	579
Other receivables, less allowance for uncollectible accounts	300	379
Fuel oil, gas in storage, materials and supplies, at average cost	348	355
Prepayments	341	131
Regulatory assets	203	172
Revenue decoupling mechanism receivable	5	117
Other current assets	166	174
TOTAL CURRENT ASSETS	3,507	3,214
INVESTMENTS	403	385
UTILITY PLANT, AT ORIGINAL COST
Electric	19,851	18,645
Gas	4,344	3,983
Steam	2,038	1,935
General	1,911	1,866
TOTAL	28,144	26,429
Less: Accumulated depreciation	5,808	5,412
Net	22,336	21,017
Construction work in progress	1,458	1,422
NET UTILITY PLANT	23,794	22,439
NON-UTILITY PLANT/PROPERTY
Non-utility property, less accumulated depreciation	46	19
Construction work in progress	23	6
NET PLANT	23,863	22,464
OTHER NONCURRENT ASSETS
Goodwill	429	416
Intangible assets, less accumulated amortization of $3 and $2 in 2010 and 2009, respectively	3	4
Regulatory assets	7,643	7,103
Other deferred charges and noncurrent assets	298	258
TOTAL OTHER NONCURRENT ASSETS	8,373	7,781
TOTAL ASSETS	36,146	33,844
CURRENT LIABILITIES
Long-term debt due within one year	5	731
Accounts payable	1,151	1,173
Customer deposits	289	274
Accrued taxes	90	51
Accrued interest	155	156
Accrued wages	102	91
Fair value of derivative liabilities	125	114
Other current liabilities	449	350
TOTAL CURRENT LIABILITIES	2,366	2,940
NONCURRENT LIABILITIES
Obligations under capital leases	7	14
Provision for injuries and damages	165	168
Pensions and retiree benefits	3,287	3,363
Superfund and other environmental costs	512	212
Asset retirement obligations	109	122
Fair value of derivative liabilities	77	131
Other noncurrent liabilities	126	108
TOTAL NONCURRENT LIABILITIES	4,283	4,118
DEFERRED CREDITS AND REGULATORY LIABILITIES
Deferred income taxes and investment tax credits	6,602	5,609
Regulatory liabilities	915	829
Other deferred credits	35	32
TOTAL DEFERRED CREDITS AND REGULATORY LIABILITIES	7,552	6,470
LONG-TERM DEBT (See Statement of Capitalization)	10,671	9,854
SHAREHOLDER'S EQUITY
Common shareholder's equity (See Statement of Common Shareholder's Equity)	11,061	10,249
Preferred stock (See Statement of Capitalization)	213	213
TOTAL SHAREHOLDER'S EQUITY	11,274	10,462
TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY	36,146	33,844
CECONY [Member]
CURRENT ASSETS
Cash and temporary cash investments	78	131
Accounts receivable - customers, less allowance for uncollectible accounts	1,025	904
Accrued unbilled revenue	473	413
Other receivables, less allowance for uncollectible accounts	103	134
Accounts receivable from affiliated companies	249	124
Fuel oil, gas in storage, materials and supplies, at average cost	306	310
Prepayments	82	82
Regulatory assets	151	104
Revenue decoupling mechanism receivable		107
Other current assets	98	89
TOTAL CURRENT ASSETS	2,565	2,398
INVESTMENTS	167	126
UTILITY PLANT, AT ORIGINAL COST
Electric	18,735	17,570
Gas	3,844	3,537
Steam	2,038	1,935
General	1,746	1,708
TOTAL	26,363	24,750
Less: Accumulated depreciation	5,314	4,947
Net	21,049	19,803
Construction work in progress	1,345	1,334
NET UTILITY PLANT	22,394	21,137
NON-UTILITY PLANT/PROPERTY
Non-utility property, less accumulated depreciation	7	9
NET PLANT	22,401	21,146
OTHER NONCURRENT ASSETS
Regulatory assets	7,058	6,590
Other deferred charges and noncurrent assets	244	201
TOTAL OTHER NONCURRENT ASSETS	7,302	6,791
TOTAL ASSETS	32,435	30,461
CURRENT LIABILITIES
Long-term debt due within one year		625
Accounts payable	924	937
Accounts payable to affiliated companies	13	17
Customer deposits	276	259
Accrued taxes	34	41
Accrued taxes to affiliated companies	29	9
Accrued interest	130	137
Accrued wages	93	89
Other current liabilities	460	333
TOTAL CURRENT LIABILITIES	1,959	2,447
NONCURRENT LIABILITIES
Obligations under capital leases	7	14
Provision for injuries and damages	159	160
Pensions and retiree benefits	2,900	2,978
Superfund and other environmental costs	392	159
Asset retirement obligations	109	122
Fair value of derivative liabilities	29	44
Other noncurrent liabilities	116	68
TOTAL NONCURRENT LIABILITIES	3,712	3,545
DEFERRED CREDITS AND REGULATORY LIABILITIES
Deferred income taxes and investment tax credits	6,071	5,139
Regulatory liabilities	783	703
Other deferred credits	31	29
TOTAL DEFERRED CREDITS AND REGULATORY LIABILITIES	6,885	5,871
LONG-TERM DEBT (See Statement of Capitalization)	9,743	9,038
SHAREHOLDER'S EQUITY
Common shareholder's equity (See Statement of Common Shareholder's Equity)	9,923	9,347
Preferred stock (See Statement of Capitalization)	213	213
TOTAL SHAREHOLDER'S EQUITY	10,136	9,560
TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY	$ 32,435	$ 30,461

Consolidated Balance Sheet (Parenthetical) (USD $) In Millions, unless otherwise specified	Dec. 31, 2010	Dec. 31, 2009
CONSOLIDATED EDISON INC [Member]
Accounts receivable-customers, allowance for uncollectible accounts	$ 76	$ 70
Other receivables, allowance for uncollectible accounts	8	5
Non-utility property, accumulated depreciation	51	45
Intangible assets, accumulated amortization	3	2
CECONY [Member]
Accounts receivable-customers, allowance for uncollectible accounts	68	63
Other receivables, allowance for uncollectible accounts	7	4
Non-utility property, accumulated depreciation	$ 22	$ 20

Consolidated Statement of Comprehensive Income (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
CONSOLIDATED EDISON INC [Member]
NET INCOME	$ 1,003	$ 879	$ 1,207
OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAXES
Pension plan liability adjustments, net of taxes	2	26	(31)
Unrealized gains/(losses) on derivatives qualified as cash flow hedges, net of $(1) taxes in 2008			(2)
Less: Reclassification adjustment for (gains)/losses included in net income, net of $1 and $(1) taxes in 2009 and 2008, respectively		1	(1)
Less: Reclassification adjustment for unrealized losses included in regulatory assets, net of $(5) taxes in 2008			(8)
TOTAL OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAXES	2	25	(24)
COMPREHENSIVE INCOME	1,005	904	1,183
Preferred stock dividend requirements of subsidiary	(11)	(11)	(11)
COMPREHENSIVE INCOME FOR COMMON STOCK	994	893	1,172
CECONY [Member]
NET INCOME	904	792	794
OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAXES
Pension plan liability adjustments, net of taxes	(2)	16	(11)
TOTAL OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAXES	(2)	16	(11)
COMPREHENSIVE INCOME	902	808	783
Preferred stock dividend requirements of subsidiary	$ (11)	$ (11)	$ (11)

Consolidated Statement of Comprehensive Income (Parenthetical) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
CONSOLIDATED EDISON INC [Member]
Pension plan liability adjustments, taxes	$ 5	$ 17	$ (21)
Unrealized gains/(losses) on derivatives qualified as cash flow hedges, taxes			(1)
Less: Reclassification adjustment for (gains)/losses included in net income, taxes		1	(1)
Less: Reclassification adjustment for unrealized losses included in regulatory assets, taxes			(5)
CECONY [Member]
Pension plan liability adjustments, taxes	$ (1)	$ 11	$ (7)

Consolidated Statement of Common Shareholders' Equity (USD $) In Millions, except Share data	CONSOLIDATED EDISON INC [Member]	CONSOLIDATED EDISON INC [Member] Common Stock [Member]	CONSOLIDATED EDISON INC [Member] Additional Paid- In Capital [Member]	CONSOLIDATED EDISON INC [Member] Retained Earnings [Member]	CONSOLIDATED EDISON INC [Member] Treasury Stock [Member]	CONSOLIDATED EDISON INC [Member] Capital Stock Expense [Member]	CONSOLIDATED EDISON INC [Member] Accumulated Other Comprehensive Income/(Loss) [Member]	CECONY [Member]	CECONY [Member] Common Stock [Member]	CECONY [Member] Additional Paid- In Capital [Member]	CECONY [Member] Retained Earnings [Member]	CECONY [Member] Repurchased Con Edison Stock [Member]	CECONY [Member] Capital Stock Expense [Member]	CECONY [Member] Accumulated Other Comprehensive Income/(Loss) [Member]
BEGINNING BALANCE at Dec. 31, 2007	$ 9,076	$ 29	$ 4,038	$ 6,113	$ (1,001)	$ (60)	$ (43)	$ 8,086	$ 589	$ 2,912	$ 5,616	$ (962)	$ (60)	$ (9)
BEGINNING BALANCE (in shares) at Dec. 31, 2007		272,024,874			23,210,700				235,488,094
Net Income	1,207							794			794
Capital contribution by parent								752		752
Net income for common stock	1,196			1,196				783
Common stock dividend	(639)			(639)				(618)			(618)
Cumulative preferred dividends								(12)			(12)
Issuance of common shares-dividend reinvestment and employee stock plans (in shares)		1,696,812
Issuance of common shares-dividend reinvestment and employee stock plans	74		74
Other comprehensive income (loss)	(24)						(24)	(11)						(11)
Adjustment for adoption of fair value standard net of taxes	15			15
ENDING BALANCE at Dec. 31, 2008	9,698	29	4,112	6,685	(1,001)	(60)	(67)	8,991	589	3,664	5,780	(962)	(60)	(20)
ENDING BALANCE (in shares) at Dec. 31, 2008		273,721,686			23,210,700				235,488,094
Net Income	879							792			792
Capital contribution by parent								211		213			(2)
Net income for common stock	868			868				781
Common stock dividend	(649)			(649)				(652)			(652)
Issuance of common shares - public offering (in shares)		5,000,000
Issuance of common shares - public offering	213	1	214			(2)
Cumulative preferred dividends								(11)			(11)
Issuance of common shares-dividend reinvestment and employee stock plans (in shares)		2,402,055
Issuance of common shares-dividend reinvestment and employee stock plans	94		94
Other comprehensive income (loss)	25						25	16						16
ENDING BALANCE at Dec. 31, 2009	10,249	30	4,420	6,904	(1,001)	(62)	(42)	9,347	589	3,877	5,909	(962)	(62)	(4)
ENDING BALANCE (in shares) at Dec. 31, 2009	281,123,741	281,123,741			23,210,700			235,488,094	235,488,094
Net Income	1,003							904			904
Capital contribution by parent								355		357			(2)
Net income for common stock	992			992				893
Common stock dividend	(676)			(676)				(670)			(670)
Issuance of common shares - public offering (in shares)		6,300,000
Issuance of common shares - public offering	306	1	307			(2)
Cumulative preferred dividends								(11)			(11)
Issuance of common shares-dividend reinvestment and employee stock plans (in shares)		4,192,593
Issuance of common shares-dividend reinvestment and employee stock plans	188		188
Other comprehensive income (loss)	2						2	(2)						(2)
ENDING BALANCE at Dec. 31, 2010	$ 11,061	$ 31	$ 4,915	$ 7,220	$ (1,001)	$ (64)	$ (40)	$ 9,923	$ 589	$ 4,234	$ 6,132	$ (962)	$ (64)	$ (6)
ENDING BALANCE (in shares) at Dec. 31, 2010	291,616,334	291,616,334			23,210,700			235,488,094	235,488,094

Consolidated Statement of Capitalization (USD $) In Millions, except Share data, unless otherwise specified	Dec. 31, 2010	Dec. 31, 2009
CONSOLIDATED EDISON INC [Member]
TOTAL COMMON SHAREHOLDERS' EQUITY BEFORE, (In shares)	291,616,334	281,123,741
TOTAL COMMON SHAREHOLDERS' EQUITY BEFORE	$ 11,101	$ 10,291
Pension plan liability adjustments, net of taxes	(37)	(38)
Unrealized gains/(losses) on derivatives qualified as cash flow hedges, net of taxes and reclassification adjustment	(3)	(4)
TOTAL ACCUMULATED OTHER COMPREHENSIVE LOSS, NET OF TAXES	(40)	(42)
ENDING BALANCE	11,061	10,249
Preferred stock	213	213
CECONY [Member]
TOTAL COMMON SHAREHOLDERS' EQUITY BEFORE, (In shares)	235,488,094	235,488,094
TOTAL COMMON SHAREHOLDERS' EQUITY BEFORE	9,929	9,351
Pension plan liability adjustments, net of taxes	(3)	(2)
Unrealized gains/(losses) on derivatives qualified as cash flow hedges, net of taxes and reclassification adjustment	(3)	(2)
TOTAL ACCUMULATED OTHER COMPREHENSIVE LOSS, NET OF TAXES	(6)	(4)
ENDING BALANCE	9,923	9,347
Preferred stock	213	213
4.65% Series C \| CECONY [Member]
Preferred stock, shares	153,296	153,296
Preferred stock	16	16
4.65% Series D \| CECONY [Member]
Preferred stock, shares	222,330	222,330
Preferred stock	22	22
Cumulative Preferred Stock [Member] \| CONSOLIDATED EDISON INC [Member]
Preferred stock, shares	1,915,319	1,915,319
Preferred stock	175	175
Cumulative Preferred Stock [Member] \| CECONY [Member]
Preferred stock, shares	1,915,319	1,915,319
Preferred stock	175	175
Cumulative Preferred Stock [Member] \| 4.65% Series C \| CONSOLIDATED EDISON INC [Member]
Preferred stock, shares	153,296	153,296
Preferred stock	16	16
Cumulative Preferred Stock [Member] \| 4.65% Series D \| CONSOLIDATED EDISON INC [Member]
Preferred stock, shares	222,330	222,330
Preferred stock	$ 22	$ 22

Consolidated Statement of Capitalization (Parenthetical) (USD $) In Millions, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009
CONSOLIDATED EDISON INC [Member]
Pension plan liability adjustments, Tax	$ (22)	$ (27)
Unrealized gains/(losses) on derivatives qualified as cash flow hedges, tax and reclassification adjustment	(60)	(61)
Authorized	1,915,319	1,915,319
Par Value	$ 0	$ 0
Stated Per Share Amount	$ 5	$ 5
CECONY [Member]
Pension plan liability adjustments, Tax	(2)	(1)
Unrealized gains/(losses) on derivatives qualified as cash flow hedges, tax and reclassification adjustment	$ (2)	$ (2)
Authorized	1,915,319
Par Value	$ 0	$ 0
Stated Per Share Amount	$ 5
Cumulative Preferred Stock [Member] \| CONSOLIDATED EDISON INC [Member]
Authorized	6,000,000
Par Value	$ 100
Cumulative Preferred Stock [Member] \| CECONY [Member]
Authorized	6,000,000
Par Value	$ 100

Consolidated Statement of Capitalization - Long Term Debt (USD $)
In Millions, unless otherwise specified

12 Months Ended

Dec. 31, 2010

Dec. 31, 2009

CONSOLIDATED EDISON INC [Member]

TOTAL DEBENTURES

$ 9,210

$ 9,065

TOTAL TRANSITION BONDS

TOTAL TAX-EXEMPT DEBT

1,130

1,185

Other Long-term Debt

323

326

Unamortized debt discount

(19)

(25)

TOTAL

10,676

10,585

Less: long-term debt due within one year

731

LONG-TERM DEBT

10,671

9,854

TOTAL CAPITALIZATION

21,945

20,316

CECONY [Member]

TOTAL DEBENTURES

8,675

8,600

TOTAL TAX-EXEMPT DEBT

1,086

Unamortized debt discount

(18)

(23)

TOTAL

9,743

9,663

Less: long-term debt due within one year

625

LONG-TERM DEBT

9,743

9,038

TOTAL CAPITALIZATION

19,879

18,598

Debenture Series 2000A, 8.125%, Due 2010 [Member] | CONSOLIDATED EDISON INC [Member]

325

8.125%

2010

Debenture Series 2000A, 8.125%, Due 2010 [Member] | CECONY [Member]

325

8.125%

2010

Debenture Series 2000A, 7.50%, Due 2010 [Member] | CONSOLIDATED EDISON INC [Member]

7.50%

2010

Debenture Series 2000B 7.50%, Due 2010 [Member] | CONSOLIDATED EDISON INC [Member]

300

7.50%

2010

Debenture Series 2000B 7.50%, Due 2010 [Member] | CECONY [Member]

300

7.50%

2010

Debenture Series 2002A, 5.625% Due 2012 [Member] | CONSOLIDATED EDISON INC [Member]

300

5.625%

2012

Debenture Series 2002A, 5.625% Due 2012 [Member] | CECONY [Member]

300

5.625%

2012

Debenture Series 2002B, 4.875% Due 2013 [Member] | CONSOLIDATED EDISON INC [Member]

500

4.875%

2013

Debenture Series 2002B, 4.875% Due 2013 [Member] | CECONY [Member]

500

4.875%

2013

Debenture Series 2003B, 3.85% Due 2013 [Member] | CONSOLIDATED EDISON INC [Member]

200

3.85%

2013

Debenture Series 2003B, 3.85% Due 2013 [Member] | CECONY [Member]

200

3.85%

2013

Debenture Series 2004A, 4.70% Due 2014 [Member] | CONSOLIDATED EDISON INC [Member]

200

4.70%

2014

Debenture Series 2004A, 4.70% Due 2014 [Member] | CECONY [Member]

200

4.70%

2014

Debenture Series 2009A, 5.55% Due 2014 [Member] | CONSOLIDATED EDISON INC [Member]

275

5.55%

2014

Debenture Series 2009A, 5.55% Due 2014 [Member] | CECONY [Member]

275

5.55%

2014

Debenture Series 2010A, 2.50% Due 2015 [Member] | CONSOLIDATED EDISON INC [Member]

2.50%

2015

Debenture Series 2005C, 5.375% Due 2015 [Member] | CONSOLIDATED EDISON INC [Member]

350

5.375%

2015

Debenture Series 2005C, 5.375% Due 2015 [Member] | CECONY [Member]

350

5.375%

2015

Debenture Series 2005A, 5.30% Due 2015 [Member] | CONSOLIDATED EDISON INC [Member]

5.30%

2015

Debenture Series 2006A, 5.45% Due 2016 [Member] | CONSOLIDATED EDISON INC [Member]

5.45%

2016

Debenture Series 2006C, 5.50% Due 2016 [Member] | CONSOLIDATED EDISON INC [Member]

400

5.50%

2016

Debenture Series 2006C, 5.50% Due 2016 [Member] | CECONY [Member]

400

5.50%

2016

Debenture Series 2006D, 5.30% Due 2016 [Member] | CONSOLIDATED EDISON INC [Member]

250

5.30%

2016

Debenture Series 2006D, 5.30% Due 2016 [Member] | CECONY [Member]

250

5.30%

2016

Debenture Series 2008A, 5.85% Due 2018 [Member] | CONSOLIDATED EDISON INC [Member]

600

5.85%

2018

Debenture Series 2008A, 5.85% Due 2018 [Member] | CECONY [Member]

600

5.85%

2018

Debenture Series 2008C, 7.125% Due 2018 [Member] | CONSOLIDATED EDISON INC [Member]

600

7.125%

2018

Debenture Series 2008C, 7.125% Due 2018 [Member] | CECONY [Member]

600

7.125%

2018

Debenture Series 2008A, 6.15% Due 2018 [Member] | CONSOLIDATED EDISON INC [Member]

6.15%

2018

Debenture Series 2009A, 4.96% Due 2019 [Member] | CONSOLIDATED EDISON INC [Member]

4.96%

2019

Debenture Series 2009B, 6.65% Due 2019 [Member] | CONSOLIDATED EDISON INC [Member]

475

6.65%

2019

Debenture Series 2009B, 6.65% Due 2019 [Member] | CECONY [Member]

475

6.65%

2019

Debenture Series 2010A, 4.45% Due 2020 [Member] | CONSOLIDATED EDISON INC [Member]

350

4.45%

2020

Debenture Series 2010A, 4.45% Due 2020 [Member] | CECONY [Member]

350

4.45%

2020

Debenture Series 1997F, 6.5% Due 2027 [Member] | CONSOLIDATED EDISON INC [Member]

6.50%

2027

Debenture Series 1999G, 7.00% Due 2029 [Member] | CONSOLIDATED EDISON INC [Member]

7.00%

2029

Debenture Series 2003A, 5.875% Due 2033 [Member] | CONSOLIDATED EDISON INC [Member]

175

5.875%

2033

Debenture Series 2003A, 5.875% Due 2033 [Member] | CECONY [Member]

175

5.875%

2033

Debenture Series 2003C, 5.10% Due 2033 [Member] | CONSOLIDATED EDISON INC [Member]

200

5.10%

2033

Debenture Series 2003C, 5.10% Due 2033 [Member] | CECONY [Member]

200

5.10%

2033

Debenture Series 2004B, 5.70% Due 2034 [Member] | CONSOLIDATED EDISON INC [Member]

200

5.70%

2034

Debenture Series 2004B, 5.70% Due 2034 [Member] | CECONY [Member]

200

5.70%

2034

Debenture Series 2005A, 5.30% Due 2035 [Member] | CONSOLIDATED EDISON INC [Member]

350

5.30%

2035

Debenture Series 2005A, 5.30% Due 2035 [Member] | CECONY [Member]

350

5.30%

2035

Debenture Series 2005B, 5.25% Due 2035 [Member] | CONSOLIDATED EDISON INC [Member]

125

5.25%

2035

Debenture Series 2005B, 5.25% Due 2035 [Member] | CECONY [Member]

125

5.25%

2035

Debenture Series 2006A, 5.85% Due 2036 [Member] | CONSOLIDATED EDISON INC [Member]

400

5.85%

2036

Debenture Series 2006A, 5.85% Due 2036 [Member] | CECONY [Member]

400

5.85%

2036

Debenture Series 2006B, 6.20% Due 2036 [Member] | CONSOLIDATED EDISON INC [Member]

400

6.20%

2036

Debenture Series 2006B, 6.20% Due 2036 [Member] | CECONY [Member]

400

6.20%

2036

Debenture Series 2006E, 5.70% Due 2036 [Member] | CONSOLIDATED EDISON INC [Member]

250

5.70%

2036

Debenture Series 2006E, 5.70% Due 2036 [Member] | CECONY [Member]

250

5.70%

2036

Debenture Series 2007A, 6.30% Due 2037 [Member] | CONSOLIDATED EDISON INC [Member]

525

6.30%

2037

Debenture Series 2007A, 6.30% Due 2037 [Member] | CECONY [Member]

525

6.30%

2037

Debenture Series 2008B, 6.75% Due 2038 [Member] | CONSOLIDATED EDISON INC [Member]

600

6.75%

2038

Debenture Series 2008B, 6.75% Due 2038 [Member] | CECONY [Member]

600

6.75%

2038

Debenture Series 2009B, 6.00% Due 2039 [Member] | CONSOLIDATED EDISON INC [Member]

6.00%

2039

Debenture Series 2009C, 5.50% Due 2039 [Member] | CONSOLIDATED EDISON INC [Member]

600

5.50%

2039

Debenture Series 2009C, 5.50% Due 2039 [Member] | CECONY [Member]

600

5.50%

2039

Debenture Series 2010B, 5.70% Due 2040 [Member] | CONSOLIDATED EDISON INC [Member]

350

5.70%

2040

Debenture Series 2010B, 5.70% Due 2040 [Member] | CECONY [Member]

350

5.70%

2040

Debenture Series 2010B, 5.50% Due 2040 [Member] | CONSOLIDATED EDISON INC [Member]

115

5.50%

2040

Transition Bonds Series 2004-1, 5.22% Due 2019 [Member] | CONSOLIDATED EDISON INC [Member]

5.22%

^[1]

2019*

^[1]

Transition Bonds

^[1]

Tax Exempt Debt Series 1994, 0.40% Due 2014 [Member] | CONSOLIDATED EDISON INC [Member]

^[1],[2]

0.40%

^[1],[2]

2014

^[1],[2]

Tax Exempt Debt Series 1995, 0.34% Due 2015 [Member] | CONSOLIDATED EDISON INC [Member]

^[1],[2]

0.34%

^[1],[2]

2015

^[1],[2]

Tax Exempt Debt Series 2004B-1, 0.595% Due 2032 [Member] | CONSOLIDATED EDISON INC [Member]

127

^[1]

127

^[1]

0.595%

^[1]

2032

^[1]

Tax Exempt Debt Series 2004B-1, 0.595% Due 2032 [Member] | CECONY [Member]

127

^[3]

127

^[3]

0.595%

^[3]

2032

^[3]

Tax Exempt Debt Series 1999A, 0.548% Due 2034 [Member] | CONSOLIDATED EDISON INC [Member]

293

^[1]

293

^[1]

0.548%

^[1]

2034

^[1]

Tax Exempt Debt Series 1999A, 0.548% Due 2034 [Member] | CECONY [Member]

293

^[3]

293

^[3]

0.548%

^[3]

2034

^[3]

Tax Exempt Debt Series 2004B-2, 0.525% Due 2035 [Member] | CONSOLIDATED EDISON INC [Member]

^[1]

0.525%

^[1]

2035

^[1]

Tax Exempt Debt Series 2004B-2, 0.525% Due 2035 [Member] | CECONY [Member]

^[3]

0.525%

^[3]

2035

^[3]

Tax Exempt Debt Series 2010A, 1.45% Due 2036 [Member] | CONSOLIDATED EDISON INC [Member]

225

^[1]

1.45%

^[1]

2036

^[1]

Tax Exempt Debt Series 2010A, 1.45% Due 2036 [Member] | CECONY [Member]

225

^[3]

1.45%

^[3]

2036

^[3]

Tax Exempt Debt Series 2001A, 4.7% Due 2036 [Member] | CONSOLIDATED EDISON INC [Member]

225

^[1]

4.70%

^[1]

2036

^[1]

Tax Exempt Debt Series 2001A, 4.7% Due 2036 [Member] | CECONY [Member]

225

^[3]

4.70%

^[3]

2036

^[3]

Tax Exempt Debt Series 2001B, 0.49% Due 2036 [Member] | CONSOLIDATED EDISON INC [Member]

^[1]

0.49%

^[1]

2036

^[1]

Tax Exempt Debt Series 2001B, 0.49% Due 2036 [Member] | CECONY [Member]

^[3]

0.49%

^[3]

2036

^[3]

Tax Exempt Debt Series 2004A, 0.525% Due 2039 [Member] | CONSOLIDATED EDISON INC [Member]

^[1]

0.525%

^[1]

2039

^[1]

Tax Exempt Debt Series 2004A, 0.525% Due 2039 [Member] | CECONY [Member]

^[3]

0.525%

^[3]

2039

^[3]

Tax Exempt Debt Series 2004C, 0.307% Due 2039 [Member] | CONSOLIDATED EDISON INC [Member]

^[1]

0.307%

^[1]

2039

^[1]

Tax Exempt Debt Series 2004C, 0.307% Due 2039 [Member] | CECONY [Member]

^[3]

0.307%

^[3]

2039

^[3]

Tax Exempt Debt Series 2005A, 0.29% Due 2039 [Member] | CONSOLIDATED EDISON INC [Member]

126

^[1]

126

^[1]

0.29%

^[1]

2039

^[1]

Tax Exempt Debt Series 2005A, 0.29% Due 2039 [Member] | CECONY [Member]

$ 126

^[3]

$ 126

^[3]

0.29%

^[3]

Summary of Significant Accounting Policies

2039

^[3]

[1]	The final date to pay the entire remaining unpaid principal balance, if any, of all outstanding bonds is May 17, 2021.
[2]	Issued for O&R pollution control financing.
[3]	Other than Series 2001A and Series 2010A (the proceeds of which were used to redeem the Series 2001A), rates reset weekly or by auction held every 35 days; December 31, 2010 rates shown.

General

12 Months Ended

Dec. 31, 2010

General

General

These combined notes accompany and form an integral part of the separate consolidated financial statements of each of the two separate registrants: Consolidated Edison, Inc. and its subsidiaries (Con Edison) and Consolidated Edison Company of New York, Inc. and its subsidiaries (CECONY). CECONY is a subsidiary of Con Edison and as such its financial condition and results of operations and cash flows, which are presented separately in the CECONY consolidated financial statements, are also consolidated, along with those of Con Edison's other utility subsidiary, Orange and Rockland Utilities, Inc. (O&R), and Con Edison's competitive energy businesses (discussed below) in Con Edison's consolidated financial statements. The term "Utilities" is used in these notes to refer to CECONY and O&R.

As used in these notes, the term "Companies" refers to Con Edison and CECONY and, except as otherwise noted, the information in these combined notes relates to each of the Companies. However, CECONY makes no representation as to information relating to Con Edison or the subsidiaries of Con Edison other than itself.

Con Edison has two regulated utility subsidiaries: CECONY and O&R. CECONY provides electric service and gas service in New York City and Westchester County. The company also provides steam service in parts of Manhattan. O&R, along with its regulated utility subsidiaries, provides electric service in southeastern New York and adjacent areas of northern New Jersey and eastern Pennsylvania and gas service in southeastern New York and adjacent areas of eastern Pennsylvania. Con Edison has the following competitive energy businesses: Consolidated Edison Solutions, Inc. (Con Edison Solutions), a retail energy services company that sells electricity and also offers energy-related services; Consolidated Edison Energy, Inc. (Con Edison Energy), a wholesale energy supply and services company; and Consolidated Edison Development, Inc. (Con Edison Development), a company that develops and participates in infrastructure projects. During the second quarter of 2008, Con Edison Development and its subsidiary, CED/SCS Newington, LLC, completed the sale of their ownership interests in electricity generating plants with an aggregate capacity of approximately 1,706 megawatts. See Note U to the financial statements.

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2010

Note A — Summary of Significant Accounting Policies

Principles of Consolidation

The Companies' consolidated financial statements include the accounts of their respective majority-owned subsidiaries, and variable interest entities (see Note Q), as required. All intercompany balances and transactions have been eliminated.

Accounting Policies

The accounting policies of Con Edison and its subsidiaries conform to accounting principles generally accepted in the United States of America. For the Utilities, these accounting principles include the accounting rules for regulated operations and the accounting requirements of the Federal Energy Regulatory Commission (FERC) and the state public utility regulatory commissions having jurisdiction.

The accounting rules for regulated operations specify the economic effects that result from the causal relationship of costs and revenues in the rate-regulated environment and how these effects are to be accounted for by a regulated enterprise. Revenues intended to cover some costs may be recorded either before or after the costs are incurred. If regulation provides assurance that incurred costs will be recovered in the future, these costs would be recorded as deferred charges or "regulatory assets" under the accounting rules for regulated operations. If revenues are recorded for costs that are expected to be incurred in the future, these revenues would be recorded as deferred credits or "regulatory liabilities" under the accounting rules for regulated operations.

The Utilities' principal regulatory assets and liabilities are detailed in Note B. The Utilities are receiving or being credited with a return on all of their regulatory assets for which a cash outflow has been made, and are paying or being charged with a return on all of their regulatory liabilities for which a cash inflow has been received. The Utilities' regulatory assets and liabilities will be recovered from customers, or applied for customer benefit, in accordance with rate provisions approved by the applicable public utility regulatory commission.

Other significant accounting policies of the Companies are referenced below in this Note A and in the notes that follow.

Plant and Depreciation

Utility Plant

Utility plant is stated at original cost. The cost of repairs and maintenance is charged to expense and the cost of betterments is capitalized. The capitalized cost of additions to utility plant includes indirect costs such as engineering, supervision, payroll taxes, pensions, other benefits and an allowance for funds used during construction (AFDC). The original cost of property is charged to expense over the estimated useful lives of the assets. Upon retirement, the original cost of property is charged to accumulated depreciation. See Note R. Rates used for AFDC include the cost of borrowed funds and a reasonable rate of return on the Utilities' own funds when so used, determined in accordance with regulations of the FERC or the state public utility regulatory authority having jurisdiction. The rate is compounded semiannually, and the amounts applicable to borrowed funds are treated as a reduction of interest charges, while the amounts applicable to the Utilities' own funds are credited to other income (deductions). The AFDC rates for CECONY were 5.3 percent, 6.9 percent and 6.0 percent for 2010, 2009 and 2008, respectively. The AFDC rates for O&R were 5.8 percent, 4.2 percent and 3.5 percent for 2010, 2009 and 2008, respectively.

The Utilities generally compute annual charges for depreciation using the straight-line method for financial statement purposes, with rates based on average service lives and net salvage factors. The average depreciation rate for CECONY was 3.1 percent for 2010, 2009 and 2008. The average depreciation rate for O&R was 2.8 percent for 2010, 2009 and 2008.

The estimated lives for utility plant for CECONY range from 5 to 80 years for electric, 5 to 85 years for gas, 5 to 70 years for steam and 5 to 50 years for general plant. For O&R, the estimated lives for utility plant range from 5 to 65 years for electric, 5 to 75 years for gas and 5 to 50 years for general plant.

At December 31, 2010 and 2009, the capitalized cost of the Companies' utility plant, net of accumulated depreciation, was as follows:


	Con Edison				CECONY
*(Millions of Dollars)*	2010		2009		2010		2009
Electric
Generation	$	396	$	392	$	396	$	392
Transmission		2,284		2,090		2,150		1,953
Distribution		13,191		12,442		12,549		11,824
Gas*		3,535		3,226		3,153		2,892
Steam		1,617		1,555		1,617		1,555
General		1,241		1,231		1,125		1,117
Held for future use		72		82		60		70
Construction work in progress		1,458		1,421		1,344		1,334
Net Utility Plant	$	23,794	$	22,439	$	22,394	$	21,137

*	Primarily distribution.

Under the Utilities' current rate plans, the aggregate annual depreciation allowance in effect at December 31, 2010 was $838 million, including $793 million under CECONY's electric, gas and steam rate plans that have been approved by the New York State Public Service Commission (NYSPSC).

Non-Utility Plant

Non-utility plant is stated at original cost and consists primarily of land, telecommunication, gas storage and solar facilities that are currently not used within electric, gas or steam utility operations. Depreciation on these assets is computed using the straight-line method for financial statement purposes over their estimated useful lives, which range from 3 to 30 years.

Goodwill

In accordance with the accounting rules for goodwill and intangible assets, Con Edison is required to test goodwill for impairment annually. Goodwill is tested for impairment using a two-step approach. The first step of the goodwill impairment test compares the estimated fair value of a reporting unit with its carrying value, including goodwill. If the estimated fair value of a reporting unit exceeds its carrying value, goodwill of the reporting unit is considered not impaired. If the carrying value exceeds the estimated fair value of the reporting unit, the second step is performed to measure the amount of impairment loss, if any. The second step requires a calculation of the implied fair value of goodwill. See Note K and Note T.

Impairments
In accordance with the accounting rules for impairment or disposal of long-lived assets, the Companies evaluate the impairment of long-lived assets, based on projections of undiscounted future cash flows, whenever events or changes in circumstances indicate that the carrying amounts of such assets may not be recoverable. In the event an evaluation indicates that such cash flows cannot be expected to be sufficient to fully recover the assets, the assets are written down to their estimated fair value.

In accordance with the accounting rules for equity method and joint ventures, Con Edison Development recognized pre-tax impairment charges of $2 million in 2008, related to its equity investment in a 29 MW electric generating plant in Michigan (which was sold in 2008), and $5 million in 2009, related to its equity investment in an electric generating plant in Guatemala (which was sold in 2010). No impairment charges were recognized in 2010.

Revenues

The Utilities and Con Edison Solutions recognize revenues for energy service on a monthly billing cycle basis. The Utilities defer over a 12-month period net interruptible gas revenues, other than those authorized by the NYSPSC to be retained by the Utilities, for refund to firm gas sales and transportation customers. The Utilities and Con Edison Solutions accrue revenues at the end of each month for estimated energy service not yet billed to customers. Prior to March 31, 2009, CECONY did not accrue revenues for energy service provided but not yet billed to customers except for certain unbilled gas revenues accrued in 1989. This change in accounting for unbilled revenues had no effect on net income. See "Regulatory Assets and Liabilities" in Note B. Unbilled revenues included in Con Edison's balance sheet at December 31, 2010 and 2009 were $633 million (including $473 million for CECONY) and $579 million (including $413 million for CECONY), respectively.

CECONY's electric and gas rate plans and O&R's New York electric and gas rate plans each contain a revenue decoupling mechanism under which the company's actual energy delivery revenues are compared on a periodic basis, with the authorized delivery revenues and the difference accrued, with interest, for refund to, or recovery from, customers, as applicable. See "Rate Agreements" in Note B.

The NYSPSC requires utilities to record gross receipts tax revenues and expenses on a gross income statement presentation basis (i.e., included in both revenue and expense). The recovery of these taxes is generally provided for in the revenue requirement within each of the respective NYSPSC approved rate plans.

Recoverable Energy Costs

The Utilities generally recover all of their prudently incurred fuel, purchased power and gas costs, including hedging gains and losses, in accordance with rate provisions approved by the applicable state public utility commissions. If the actual energy supply costs for a given month are more or less than the amounts billed to customers for that month, the difference in most cases is recoverable from or refundable to customers. Differences between actual and billed electric and steam supply costs are generally deferred for charge or refund to customers during the next billing cycle (normally within one or two months). In addition, CECONY recovers the costs of its electric demand management program, in excess of the costs reflected in rates, as part of recoverable energy costs. For the Utilities' gas costs, differences between actual and billed gas costs during the 12-month period ending each August are charged or refunded to customers during a subsequent 12-month period.

New York Independent System Operator (NYISO)

The Utilities purchase electricity through the wholesale electricity market administered by the NYISO. The difference between purchased power and related costs initially billed to the Utilities by the NYISO and the actual cost of power subsequently calculated by the NYISO is refunded by the NYISO to the Utilities, or paid to the NYISO by the Utilities. The reconciliation payments or receipts are recoverable from or refundable to the Utilities' customers.

Certain other payments to or receipts from the NYISO are also subject to reconciliation, with shortfalls or amounts in excess of specified rate allowances recoverable from or refundable to customers. These include proceeds from the sale through the NYISO of transmission rights on CECONY's transmission system (transmission congestion contracts or TCCs).

Sulfur Dioxide (SO₂) Allowances

In accordance with the federal Clean Air Act, CECONY has been allocated SO₂ emission allowances which the company may sell, trade or hold for future use. Generally, CECONY defers its proceeds from the sale of SO₂ allowances as regulatory liabilities to be applied for customer benefit. The proceeds received from the sale of SO₂ allowances are included in net cash flows from operating activities in the Companies' consolidated statements of cash flows.

Temporary Cash Investments

Temporary cash investments are short-term, highly-liquid investments that generally have maturities of three months or less at the date of purchase. They are stated at cost, which approximates market. The Companies consider temporary cash investments to be cash equivalents.

Investments

Investments consist primarily of the investments of Con Edison's competitive energy businesses, which are accounted for under the equity method (depending on the subsidiaries' percentage ownership) or accounted for as leveraged leases in accordance with the accounting rules for leases. See Note J for a discussion of investments in Lease In/Lease Out transactions. Utilities' investments are recorded at either cost or fair value and include the deferred income plan and supplemental retirement income plan trust owned life insurance assets.

Pension and Other Postretirement Benefits

The accounting rules for retirement benefits require an employer to recognize an asset or liability for the overfunded or underfunded status of its pension and other postretirement benefit plans. For a pension plan, the asset or liability is the difference between the fair value of the plan's assets and the projected benefit obligation. For any other postretirement benefit plan, the asset or liability is the difference between the fair value of the plan's assets and the accumulated postretirement benefit obligation. The accounting rules generally require employers to recognize all unrecognized prior service costs and credits and unrecognized actuarial gains and losses in accumulated other comprehensive income (OCI), net of tax. Such amounts will be adjusted as they are subsequently recognized as components of net periodic benefit cost or income pursuant to the current recognition and amortization provisions.

For the Utilities' pension and other postretirement benefit plans, regulatory accounting treatment is generally applied in accordance with the accounting rules for regulated operations. Unrecognized prior service costs or credits and unrecognized actuarial gains and losses are recorded to regulatory assets or liabilities, rather than OCI. See Notes E and F.

The net periodic benefit costs are recognized in accordance with the accounting rules for retirement benefits. Investment gains and losses are recognized in expense over a 15-year period and other actuarial gains and losses are recognized in expense over a 10-year period, subject to the deferral provisions in the rate plans.

In accordance with the Statement of Policy issued by the NYSPSC and its current electric, gas and steam rate agreements, CECONY defers for payment to or recovery from customers the difference between such expenses and the amounts for such expenses reflected in rates. Generally, O&R also defers such difference pursuant to its rate plans. See Note B – Regulatory Matters.

The Companies calculate the expected return on pension and other retirement benefit plan assets by multiplying the expected rate of return on plan assets by the market-related value (MRV) of plan assets at the beginning of the year, taking into consideration anticipated contributions and benefit payments that are to be made during the year. The accounting rules allow the MRV of plan assets to be either fair value or a calculated value that recognizes changes in fair value in a systematic and rational manner over not more than five years. The Companies use a calculated value when determining the MRV of the plan assets that adjusts for 20 percent of the difference between fair value and expected MRV of plan assets. This calculated value has the effect of stabilizing variability in assets to which the Companies apply the expected return.

Federal Income Tax

In accordance with the accounting rules for income taxes, the Companies have recorded an accumulated deferred federal income tax liability for temporary differences between the book and tax basis of assets and liabilities at current tax rates. In accordance with rate agreements, the Utilities have recovered amounts from customers for a portion of the tax liability they will pay in the future as a result of the reversal or "turn-around" of these temporary differences. As to the remaining tax liability, in accordance with the accounting rules for regulated operations, the Utilities have established regulatory assets for the net revenue requirements to be recovered from customers for the related future tax expense. See Notes B and L. In 1993, the NYSPSC issued a Policy Statement approving accounting procedures consistent with the accounting rules for income taxes and providing assurances that these future increases in taxes will be recoverable in rates. See Note L.

Accumulated deferred investment tax credits are amortized ratably over the lives of the related properties and applied as a reduction to future federal income tax expense.

The Companies' federal income tax returns reflect certain tax positions with which the Internal Revenue Service (IRS) does not or may not agree. See "Lease In/Lease Out Transactions" in Note J and "Uncertain Tax Positions" in Note L.

Con Edison and its subsidiaries file a consolidated federal income tax return. The consolidated income tax liability is allocated to each member of the consolidated group using the separate return method. Each member pays or receives an amount based on its own taxable income or loss in accordance with tax sharing agreements between the members of the consolidated group.

State Income Tax

Con Edison and its subsidiaries file a combined New York State Corporation Business Franchise Tax Return. Similar to a federal consolidated income tax return, the income of all entities in the combined group is subject to New York State taxation, after adjustments for differences between federal and New York law and apportionment of income among the states in which the company does business. Each member of the group pays or receives an amount based on its own New York State taxable income or loss.

Research and Development Costs

Generally research and development costs are charged to operating expenses as incurred. Research and development costs were as follows:


	For the Years Ended December 31,
*(Millions of Dollars)*	2010		2009		2008
Con Edison	$	23	$	27	$	29
CECONY	$	21	$	25	$	28

Reclassification

Certain prior year amounts have been reclassified to conform with the current year presentation.

Earnings Per Common Share

In accordance with the accounting rules for earnings per share, Con Edison presents basic and diluted earnings per share on the face of its consolidated income statement. Basic earnings per share (EPS) are calculated by dividing earnings available to common shareholders ("Net income for common stock" on Con Edison's consolidated income statement) by the weighted average number of Con Edison common shares outstanding during the period. In the calculation of diluted EPS, weighted average shares outstanding are increased for additional shares that would be outstanding if potentially dilutive securities were converted to common stock.

Potentially dilutive securities for Con Edison consist of restricted stock units, deferred stock units and stock options for which the average market price of the common shares for the period was greater than the exercise price. See Note M.

Basic and diluted EPS for Con Edison are calculated as follows:


	For the Years Ended December 31,
*(Millions of Dollars, except per share amounts/Shares in Millions)*	2010		2009		2008
Income for common stock from continuing operations	$	992	$	868	$	922
Income for common stock from discontinued operations, net of tax		—		—		274
Net income for common stock	$	992	$	868	$	1,196
Weighted average common shares outstanding – Basic		284.3		275.2		272.9
Add: Incremental shares attributable to effect of potentially dilutive securities		1.6		1.1		0.7
Adjusted weighted average common shares outstanding – Diluted		285.9		276.3		273.6
Earnings per Common Share – Basic
Continuing operations	$	3.49	$	3.16	$	3.37
Discontinued operations		—		—		1.01
Net income for common stock	$	3.49	$	3.16	$	4.38
Earnings per Common Share – Diluted
Continuing operations	$	3.47	$	3.14	$	3.36
Discontinued operations		—		—		1.01
Net income for common stock	$	3.47	$	3.14	$	4.37

The computation of diluted earnings per share excludes immaterial amounts of incremental Con Edison common shares for the years ended December 31, 2010, 2009 and 2008, respectively, because the exercise prices on the options exceeded the average closing market price during these periods.

Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Regulatory Matters

12 Months Ended

Dec. 31, 2010

Regulatory Matters

Note B — Regulatory Matters

Rate Agreements

CECONY — Electric

In March 2005, the NYSPSC approved a Joint Proposal by CECONY, the staff of the NYSPSC and other parties with respect to the rates the company can charge its customers for electric delivery service (the 2005 Electric Rate Agreement). The 2005 Electric Rate Agreement covered the three-year period April 2005 through March 2008, pursuant to which CECONY's electric base rates were increased $104.6 million, effective April 1, 2005, and were increased an additional $220.4 million (of which $60 million was accrued over the period beginning April 1, 2006 to March 31, 2007), effective April 1, 2007. In addition, the company retained the first $60 million of auction proceeds from the sale of transmission rights on the company's transmission system in each of the three years. The rate increases also included the amortization of certain regulatory assets and liabilities. The net effect of this amortization was a non-cash increase in electric revenues of $128 million, $173 million and $249 million in the first, second and third rate years, respectively.

The 2005 Electric Rate Agreement provided for annual reconciliations of the differences between the actual amount of transmission and distribution utility plant, net of depreciation (Net T&D) and the actual amount of certain operating costs experienced over the term of the agreement, as compared in each case to the amounts reflected in electric rates.

Actual Net T&D was greater than the Net T&D reflected in rates, and in accordance with the 2005 Electric Rate Agreement, the company accrued a regulatory asset and increased its revenues by the revenue requirement impact of such difference (i.e., a return on investment, depreciation and income taxes). If the actual Net T&D had been less than the Net T&D reflected in rates, the company would have accrued a regulatory liability and decreased its revenues by the revenue requirement impact of such difference. For the period from April 1, 2005 through March 31, 2008, actual Net T&D exceeded the Net T&D

reflected in rates by approximately $1.5 billion. The company accrued revenues of $50 million, $187 million and $115 million in 2008, 2007 and 2006, respectively, to reflect the revenue requirement impact of the Net T&D difference. In accordance with the 2005 Electric Rate Agreement, the regulatory assets associated with the accrued revenues were offset at the end of each rate year with a like amount of regulatory liabilities.

The NYSPSC's March 2008 and April 2009 orders and the November 2009 Joint Proposal covering CECONY's electric rates, discussed below, provided for the collection of a portion of the company's electric revenues ($237 million in the rate year ended March 2009, $254 million for the rate year ending March 2010 and, beginning April 2010, $249 million on an annual basis) subject to potential refund to customers following NYSPSC review and completion of an investigation by the NYSPSC staff of the company's capital expenditures during the April 2005 through March 2008 period covered by the 2005 Electric Rate Agreement for transmission and distribution utility plant (the 2005-2008 Capital Expenditure Review). In December 2009, the company established a $24 million regulatory liability for refund to customers with respect to this matter and recognized a $14 million (after-tax) charge in its 2009 consolidated financial statements. In March 2010, the NYSPSC issued an order approving a February 2010 Joint Proposal by the company and the NYSPSC staff relating to this matter pursuant to which the company, among other things, provided a $36 million credit to customer bills in 2010.

Under the 2005 Electric Rate Agreement, if the actual amount of pension or other postretirement benefit costs, environmental remediation costs and, if the variation exceeded 2.5 percent, property taxes or the cost of moving facilities to avoid interfering with government projects was greater than the respective amount for each such cost reflected in rates, the company would accrue a regulatory asset for the difference and defer recognition in income of the difference. If the actual amount had been less than the amount reflected in electric rates, the company would have accrued a regulatory liability for the difference and deferred recognition in income of the difference. As a result of the cost reconciliations, in 2008, the company reduced pre-tax net income by $18 million.

The 2005 Electric Rate Agreement also provided for the continuation of the rate provisions pursuant to which the company recovers its potential strandable costs and its purchased power and fuel costs from customers.

The 2005 Electric Rate Agreement included potential positive earnings adjustments (incentives) if the company met certain standards for its retail access and demand side management programs, and potential negative earnings adjustments (revenue reductions), which could have been substantial, if it did not meet certain standards for (i) frequency and duration of service interruptions; (ii) major outages; (iii) repair, removal or replacement of damaged poles, temporary shunts, street lights, traffic signals and circuit breakers; and (iv) customer service. In 2008, the company recorded an incentive for demand side management initiatives of $5 million and no other incentives or revenue reductions.

In March 2008, the NYSPSC adopted an order, issued and effective March 25, 2008, granting CECONY an electric rate increase, effective April 1, 2008, of $425 million.

The NYSPSC ruling reflected the following major items:

•

a return on common equity of 9.1 percent;

•

an increase to $150 million from $60 million in the level of annual revenues that, for purposes of setting rates, it is assumed the company will receive and retain from the sale of transmission rights on the company's transmission system, with the difference between such actual revenues for the rate year and $150 million to be recoverable from or refundable to customers, as the case may be (the company accrued $36 million of revenues under this provision in 2008);

•

collection of $237 million of the $425 million rate increase is subject to potential refund to customers following the 2005-2008 Capital Expenditure Review (see discussion above in this Note B of the February 2010 Joint Proposal);

•

continuation of the rate provisions under which pension and other post-retirement benefit expenses and environmental remediation expenses are reconciled to amounts reflected in rates (the company deferred recognition of $25 million of expenses under these provisions in 2008);

•

change to the reconciliation provisions for transmission and distribution expenditures and costs to relocate facilities to accommodate government projects, which under the NYSPSC ruling will be reconciled only to the extent actual expenditures are less than amounts reflected in rates (the company reduced revenues by $15 million under this provision in 2008);

•

discontinuation of the provisions under which property taxes were reconciled to amounts reflected in rates;

•

potential operations penalties of up to $152 million annually if certain customer service and system reliability performance targets are not met (the company reduced revenues by $5 million under these provisions in 2008);

•

implementation of a revenue decoupling mechanism under which the company's actual energy delivery revenues would be compared, on a periodic basis, with the authorized delivery revenues and the difference accrued, with interest, for refund to, or recovery from, customers, as applicable (the company reduced revenues by $7 million pursuant to this provision in 2008); and

•

continuation of the rate provisions pursuant to which the company recovers its purchased power and fuel costs from customers.

In April 2009, the NYSPSC adopted an order granting CECONY an electric rate increase, effective April 6, 2009, of $523 million. The NYSPSC ruling reflects the following major items:

•

A return on common equity of 10.0 percent, based on certain assumptions, including a common equity ratio of 48 percent and achievement by the company of unspecified austerity measures required by the NYSPSC that would result in avoided revenue requirements of $60 million;

•

continuation of the revenue decoupling mechanism (in 2009, the company increased revenues by $122 million pursuant to this mechanism and the corresponding provision of the March 2008 rate order);

•

a decrease to $120 million from $150 million in the level of annual revenues that, for purposes of setting rates, it is assumed the company will receive and retain from the sale of transmission rights on the company's transmission system, with the difference between such actual revenues for the rate year and $120 million to be recoverable from or refundable to customers, as the case may be (in 2009, the company accrued $7 million of revenues under this provision and the corresponding provision of the March 2008 rate order);

•

reconciliation of the actual amount of pension and other postretirement benefit costs, environmental remediation expenses, property taxes and the cost of long-term debt to amounts reflected in rates (in 2009, the company deferred recognition of $36.4 million of expenses under these provisions and the corresponding provisions of the March 2008 rate order);

•

if actual generation, transmission, distribution and shared service plant expenditures (other than removal costs) and capital costs incurred to relocate facilities to accommodate government projects are less than amounts reflected in rates for the respective category of expenditures, the company will accrue a regulatory liability and reduce its revenues by the revenue requirement impact of the difference (i.e., return on investment, depreciation and income taxes) (in 2009, the company did not reduce revenues under these provisions and the corresponding provisions of the March 2008 rate order);

•

collection of a surcharge (in addition to the electric rate increase) from customers in connection with an increase (estimated at $198 million), effective April 2009, in a New York State assessment;

•

continuation of provisions for potential operations penalties of up to $152 million annually if certain customer service and system reliability performance targets are not met (in 2009, the company did not reduce revenues under these provisions and the corresponding provisions of the March 2008 rate order);

•

continuation of the collection of a portion (increased, to reflect higher capital costs, from $237 million collected in the rate year ended March 2009 to $254 million for the rate year ending March 2010) of the April 2008 rate increase subject to potential refund to customers following the 2005-2008 Capital Expenditure Review (see discussion above in this Note B of the February 2010 Joint Proposal). The portion collected is also subject to refund in the event the NYSPSC determines that some disallowance of costs the company has recovered is warranted to address potential impacts of alleged unlawful conduct by arrested employees and contractors (see "Other Regulatory Matters" below in this Note B and "Investigations of Vendor Payments" in Note H).

•

continuation of the rate provisions pursuant to which the company recovers its purchased power and fuel costs from customers.

In May 2009, the company filed with the NYSPSC the company's plan with respect to austerity measures that would reduce the company's revenue requirements during the rate year ending March 31, 2010 by $60 million. The company's austerity plans include reductions in labor costs, including compensation and other employee benefits, deferral of expenditures for capital projects and operating and maintenance programs and other initiatives. These reductions collectively represent $47 million of the $60 million reduction sought by the NYSPSC. In May 2009, the company filed with the NYSPSC a request for rehearing of the NYSPSC's April 2009 order with respect to its austerity provisions and certain other matters. The February 2010 Joint Proposal (discussed above in Note B) provides for the company to withdraw this request.

In November 2009, CECONY, the NYSPSC staff and other parties entered into a Joint Proposal with respect to the company's May 2009 request to the NYSPSC for an increase in the rates the company can charge its customers for electric delivery service. The Joint Proposal, which was approved in March 2010, covers the three-year period April 2010 through March 2013 and provides for electric base rate increases of $420 million, effective April 2010 and 2011, and $287 million, effective April 2012, with an additional $133 million to be collected through a surcharge in the rate year ending March 2013.

The Joint Proposal reflects the following major items:

•

A weighted average cost of capital of 7.76 percent, reflecting:

•

return on common equity of 10.15 percent, assuming achievement by the company of unspecified austerity measures that would result in reductions in operations and maintenance expenses of $27 million, $20 million and $13 million in the rate years ending March 2011, 2012 and 2013, respectively;

•

cost of long-term debt of 5.65 percent;

•

common equity ratio of 48 percent; and

•

average rate base of $14,887 million, $15,987 million and $16,826 million for the rate years ending March 2011, 2012 and 2013, respectively.

•

Deferral as a regulatory liability of the revenue requirement impact (i.e., return on investment, depreciation and income taxes) of the amount, if any, by which (A) actual average net plant balances allocable to the company's electric business for (i) transmission and distribution, excluding municipal infrastructure support (T&D), (ii) generation, shared services and, subject to certain adjustments, municipal infrastructure support (Other) and (iii) a finance and supply chain enterprise resource project (ERP) are less than (B) amounts reflected in rates for the respective category for each rate year. The amounts reflected in rates are:


	Rate Year Ending March 31,
*(Millions of Dollars)*	2011		2012		2013
T&D	$	13,818	$	14,742	$	15,414
Other		1,487		1,565		1,650
ERP		—		25		115

•

Any deferral for T&D and Other for the rate year ending March 2011 will be based on average net plant balances for the year and for the rate years ending March 2012 and 2013 will be based on average net plant balances over the term of the Joint Proposal.

•

Any deferral for ERP would be based on average net plant balances for ERP over the term of the Joint Proposal.

•

During the term of the Joint Proposal, the company will not accrue any additional revenue for carrying charges on any capital expenditures allocable to its electric business in excess of specified limits (which limits exclude certain expenditures, including expenditures for projects for which the company has been selected to receive grants under the American Recovery and Reinvestment Act of 2009):

•

T&D capital expenditures – $1,200 million for the rate year ending March 2011 and an aggregate $2,300 million for the period from April 2011 through March 2013;

•

Other capital expenditures – $220 million for the rate year ending March 2011 and an aggregate $402 million for the period from April 2011 through March 2013; and

•

ERP capital expenditures – $125 million.

•

The company is not precluded from seeking to recover in rates effective after March 2013 the annual revenue requirement for T&D and Other capital expenditures made during the term of the Joint Proposal in excess of the applicable capital expenditure limit; provided that:

•

the company can justify the need for and reasonableness of, and the company's inability to reasonably avoid, such excess capital expenditures; and

•

the return on investment for any such excess T&D or Other capital expenditures made during the rate year ending March 2011 will be calculated based on the company's overall cost of debt.

•

Sharing with electric customers of any actual earnings, excluding the effects of any penalties and certain other items, above specified percentage returns on equity (based on actual average common equity ratio, subject to a 50 percent maximum) as follows:

•

for the rate year ending March 2011, the company will allocate to customers the revenue requirement equivalent of 50 percent of earnings above 11.15 percent up to and including 12.149 percent, 75 percent of earnings equal to or in excess of 12.15 percent up to and including 13.149 percent and 90 percent of earnings equal to or in excess of 13.15 percent;

•

for the rate years ending March 2012 and 2013, the company will allocate to customers the revenue requirement equivalent of 60 percent of the earnings, calculated on a cumulative basis for such years, in excess of 10.65 percent up to and including 12.149 percent, 75 percent of such cumulative earnings equal to or in excess of 12.15 percent up to and including 13.149 percent and 90 percent of such cumulative earnings equal to or in excess of 13.15 percent;

•

the customers' share of any such earnings and 50 percent of the company's share would be applied to reduce regulatory assets for pensions and other post-retirement benefits and other costs; and

•

in the event the company does not file for a rate increase to take effect in April 2013, the earnings sharing levels for the rate year ending March 2013 will continue in effect, calculated on an annual basis, until base rates are reset by the NYSPSC.

•

Deferral as a regulatory asset or liability, as the case may be, of differences between the actual level of certain expenses, including, among others, expenses for pension and other postretirement benefits, environmental remediation, relocation of facilities to accommodate government projects, property taxes and (for the rate years ending March 2012 and 2013) long-term debt, and amounts for those expenses reflected in rates (with deferral for the difference in property taxes limited to 80 percent of the difference, subject to annual maximum for the remaining 20 percent of the difference of not more than a 10 basis point impact on return on common equity and deferral of facility relocation expenses in excess amounts reflected in rates subject to certain limitations). In 2010, the company deferred recognition of $68 million of revenue under these provisions and the corresponding provisions of the April 2009 rate order.

•

Continuation of the provisions in the April 2009 order relating to revenues from the sale of transmission rights on the company's transmission system. In 2010, the company accrued $9 million of revenues under this provision and the corresponding provision of the April 2009 rate order.

•

Continuation of the revenue decoupling mechanism under which the company's actual electric delivery revenues would be compared, on a periodic basis, with the delivery revenues reflected in rates, and the difference accrued as a regulatory liability (for refund to electric customers) or a regulatory asset (for recovery from electric customers), as the case may be. In 2010, the company deferred for customer benefit $130 million of revenues under this provision and the corresponding provision of the April 2009 rate order.

•

Continuation of the rate provisions pursuant to which the company recovers its purchased power and fuel costs from electric customers.

•

Continuation of provisions for potential operations penalties of up to $152 million annually if certain electric customer service and system reliability performance targets are not met. In 2010 and 2009, the company did not recognize any expenses under these provisions and the corresponding provisions of the April 2009 order.

•

Collection from electric customers of $249 million on an annual basis subject to potential refund following the 2005-2008 Capital Expenditure Review (see discussion above in this Note B of the February 2010 Joint Proposal). The amount to be collected would also be subject to refund in the event the NYSPSC determined that some disallowance of costs the company has recovered is warranted to address potential impacts of alleged unlawful conduct by arrested employees and contractors (see "Other Regulatory Matters" below in this Note B and "Investigations of Vendor Payments" in Note H).

O&R — Electric

In October 2007, the NYSPSC issued an order that continued O&R's rates for electric service rendered in New York at current levels. The order, which was based on an allowed annual rate of return on common equity of 9.1 percent increased, effective July 1, 2007, by $13.1 million annually the amount recognized for pension and other postretirement benefit costs. Because O&R, in accordance with applicable New York regulatory provisions, defers the difference between the actual amount of such costs and the amounts for such costs reflected in rates, the effect of the increase was to decrease the company's deferrals of such costs and increase other operations and maintenance expense by a like amount. As required by the order, the company also reduced other operating revenues and recorded a regulatory liability of $3 million for earnings attributable to its New York electric business in excess of a 9.1 percent annual rate of return on common equity applicable to the period March through June 2007. In June 2007, O&R commenced an action in New York State Supreme Court seeking to annul the March 2007 NYSPSC order that initiated the proceeding in which the October 2007 order was issued.

In July 2008, the NYSPSC approved a Joint Proposal among O&R, the NYSPSC staff and other parties for the rates O&R can charge its New York customers for electric service from July 2008 through June 2011. The rate plan approved by the NYSPSC provides for electric rate increases of $15.6 million, $15.6 million and $5.7 million effective July 1, 2008, 2009 and 2010, respectively, and the collection of an additional $9.9 million during the 12-month period beginning July 1, 2010.

The Joint Proposal reflected the following major items:

•

an annual return on common equity of 9.4 percent;

•

most of any actual earnings above a 10.2 percent return on equity (based on actual average common equity ratio, subject to a 50 percent maximum) are to be applied to reduce regulatory assets for pension and other post-retirement benefit expenses (the company did not reduce regulatory assets under this provision in 2010, 2009 or 2008);

•

deferral as a regulatory asset or regulatory liability, as the case may be, of the difference between actual pension and other post-retirement benefit expenses, environmental remediation expenses, property taxes, tax-exempt debt costs and certain other expenses and amounts for those expenses reflected in rates (the company deferred recognition of $0.7 million revenue and $3 million and $6 million of expenses under this provision in 2010, 2009 and 2008, respectively);

•

deferral as a regulatory liability of the revenue requirement impact (i.e., return on investment, depreciation and income taxes) of the amount, if any, by which actual transmission and distribution related capital expenditures are less than amounts reflected in rates (the company deferred $12 million, $8 million and $1 million of expenses under this provision in 2010, 2009 and 2008, respectively);

•

deferral as a regulatory asset of increases, if any, in certain expenses above a 4 percent annual inflation rate, but only if the actual annual return on common equity is less than 9.4 percent (the company did not defer any expenses under this provision in 2009 or 2008);

•

potential negative earnings adjustments of up to $3 million annually if certain customer service and system reliability performance targets are not met (the company reduced revenues by $0.4 million under these provisions in 2008; the company met the performance targets in 2009; the company reduced revenues by $1 million under these provisions in 2010);

•

implementation of a revenue decoupling mechanism under which actual energy delivery revenues would be compared, on a periodic basis, with the authorized delivery revenues with the difference accrued, with interest, for refund to, or recovery from, customers, as applicable (the company accrued $5.0 million, $12.4 million and $3.6 million of revenues pursuant to this provision in 2010, 2009 and 2008, respectively);

•

continuation of the rate provisions pursuant to which the company recovers its purchased power costs from customers; and

•

withdrawal of the litigation O&R commenced seeking to annul the NYSPSC's March and October 2007 orders relating to O&R's electric rates.

In July 2010, O&R filed a request with the NYSPSC for an increase in the rates it charges for electric service rendered in New York, effective July 2011, of $61.7 million. The filing reflects a return on common equity of 11 percent and a common equity ratio of 49.9 percent. Among other things, the filing proposes continuation of the current provisions with respect to recovery from customers of the cost of purchased power and with respect to the deferral of differences between actual expenses allocable to the electric business for pensions and other postretirement benefits, environmental, and research and developmental costs to the amounts for such costs reflected in electric rates. The filing also includes an alternative proposal for a three-year electric rate plan with annual rate increases of $47.1 million effective July 2011, and $33.2 million effective July 2012 and 2013. The multi-year filing reflects a return on common equity of 11.55 percent.

In March 2007, the New Jersey Board of Public Utilities (NJBPU) approved a three-year electric base rate plan for Rockland Electric Company (RECO), O&R's New Jersey regulated utility subsidiary that went into effect on April 1, 2007. The plan provides for a $6.4 million rate increase during the first year, with no further increase during the final two years. The plan reflects a return on common equity of 9.75 percent and a common equity ratio of 46.5 percent of capitalization.

In May 2010, RECO, the Division of Rate Counsel, Staff of the NJBPU and certain other parties entered into a stipulation of settlement with respect to the company's August 2009 request to increase the rates that it can charge its customers for electric delivery service. The stipulation, which was approved by the Board of the NJBPU, provides for an electric rate increase, effective May 17, 2010, of $9.8 million. The stipulation reflects a return on common equity of 10.3 percent and a common equity ratio of approximately 50 percent. The stipulation continues current provisions with respect to recovery from customers of the cost of purchased power and does not provide for reconciliation of actual expenses to amounts reflected in electric rates for pension and other postretirement benefit costs.

CECONY — Gas

In September 2007, the NYSPSC approved the Joint Proposal that CECONY had entered into in June 2007 with the staff of the NYSPSC and other parties with respect to the rates the company can charge its customers for gas service. The Joint Proposal had provided for rate increases of $84.6 million, $32.7 million and $42.7 million, effective October 1, 2007, 2008 and 2009, respectively, along with annual funding for new energy efficiency programs of $14 million. The NYSPSC modified the Joint Proposal to provide for levelized annual rate increases of $67.5 million in each year of the three year rate plan.

The Joint Proposal continues the previous gas rate plan provisions with respect to recovery from customers of the cost of purchased gas and environmental remediation expenses and corresponding provisions pursuant to which the effects of weather on gas income are moderated and for the reconciliation of actual expenses allocable to the gas business to the amounts for such costs reflected in gas rates for pension and other postretirement benefit costs, property taxes and interference costs. Additional provisions of the gas rate plan include: a revenue decoupling mechanism (pursuant to which the company accrued $24 million, $25 million, and $17 million of revenues in 2010, 2009, and 2008, respectively) and equal sharing with customers of earnings above a 10.7 percent return on common equity (earnings for the rate years ended September 30, 2010, 2009 and 2008 were reduced $6 million, $0 and $9 million, respectively, for earnings above the 10.7 percent threshold).

In May 2010, CECONY, the staff of the NYSPSC and other parties entered into a Joint Proposal, with respect to the company's rates for gas delivery service. The Joint Proposal, which was approved by the NYSPSC in September 2010, covers the three-year period October 2010 through September 2013 and provides for gas base rate increases of $47.1 million, $47.9 million and $46.7 million, effective October 2010, 2011 and 2012, respectively. The Joint Proposal reflects the following major items:

•

A weighted average cost of capital of 7.46 percent, reflecting:

•

return on common equity of 9.6 percent, assuming achievement by the company of cost avoidance for productivity and "austerity". The unspecified austerity measures assume reductions in costs of $6 million, $4 million and $2 million in the rate years ending September 2011, 2012 and 2013, respectively;

•

cost of long-term debt of 5.57 percent;

•

common equity ratio of 48 percent; and

•

average rate base of $3,027 million, $3,245 million and $3,434 million for the rate years ending September 2011, 2012 and 2013, respectively.

•

Deferral as a regulatory liability of the revenue requirement impact (i.e., return on investment, depreciation and income taxes) of the amount, if any, by which actual average net plant balances allocable to the company's gas business are less than the amounts reflected in rates: $2,934 million, $3,148 million and $3,346 million for the rate years ending September 2011, 2012 and 2013, respectively.

•

Sharing with gas customers of any actual earnings, excluding the effects of any penalties and certain other items, above specified percentage returns on equity (based on actual average common equity ratio, subject to a 50 percent maximum), on a cumulative basis over the term of the Joint Proposal, calculated as follows:

•

for the rate year ending September 2011, the company will allocate to customers the revenue requirement equivalent of 60 percent of earnings above 10.35 percent up to and including 11.59 percent, 75 percent of earnings equal to or in excess of 11.6 percent up to and including 12.59 percent and 90 percent of earnings equal to or in excess of 12.6 percent;

•

for the rate years ending September 2012 and 2013, the company will allocate to customers the revenue requirement equivalent of 60 percent of the earnings in excess of 10.1 percent up to and including 11.59 percent, 75 percent of such earnings equal to or in excess of 11.6 percent up to and including 12.59 percent and 90 percent of such earnings equal to or in excess of 12.6 percent;

•

the customers' share of any such earnings and 50 percent of the company's share, appropriately adjusted for taxes, would be applied to reduce regulatory assets for pensions and other post-retirement benefits and other costs; and

•

in the event the company does not file for a rate increase to take effect in October 2013, the earnings sharing levels for the rate year ending September 2013 will continue in effect, implemented on an annual basis, until base rates are reset by the NYSPSC.

•

Deferral as a regulatory asset or liability, as the case may be, of differences between the actual level of certain expenses, including, among others, expenses for pension and other postretirement benefits, environmental remediation, property taxes and long-term debt, and amounts for those expenses reflected in rates (with deferral for the difference in property taxes limited to 80 percent of the difference, subject to annual maximum for the remaining 20 percent of the difference of not more than the equivalent in revenue requirement of a 10 basis point impact on return on common equity).

•

Continuation of provisions pursuant to which the company will retain net revenues from non-firm customer transactions. In each year of the rate plan, the company will retain up to $58 million of any such revenues and 25 percent of any such revenues above $58 million. If such revenues are below $58 million in a rate year, the company will accrue a regulatory asset equal to (A) the amount by which such revenues are less than $33 million plus (B) 80 percent of the difference between $58 million and the level of such revenues at or above $33 million.

•

Continuation of the provisions pursuant to which the effects of weather on gas delivery revenues during each billing cycle are reflected in customer bills for that billing cycle, and a revenue decoupling mechanism under which the company's actual gas delivery revenues, inclusive of any such weather adjustment, would be compared, on a periodic basis, with the delivery revenues reflected in rates, with the difference accrued as a regulatory liability (for refund to gas customers) or a regulatory asset (for recovery from gas customers), as the case may be.

•

Continuation of the rate provisions pursuant to which the company recovers its costs of purchased gas from gas customers.

•

Continuation of provisions for potential penalties (up to $12.6 million annually) if certain gas customer service and system performance targets are not met.

•

Continued collection from gas customers of $32 million on an annual basis subject to potential refund (see "Other Regulatory Matters" below and "Investigations of Vendor Payments" in Note H).

O&R — Gas

In October 2006, the NYSPSC approved the June 2006 settlement agreement among O&R, the staff of the NYSPSC and other parties. The settlement agreement established a rate plan that covered the three-year period November 1, 2006 through October 31, 2009. The rate plan provided for rate increases in base rates of $12 million in the first year, $0.7 million in the second year and $1.1 million in the third year. To phase-in the effect of the increase for customers, the rate plan provided for O&R to accrue revenues for, but defer billing to customers of, $5.5 million of the first rate year rate increase by establishing a regulatory asset which, together with interest, was billed to customers in the second and third years. As a result, O&R's billings to customers increased $6.5 million in each of the first two years and $6.3 million in the third. The first year rate increase included $2.3 million relating to a change in the way customers are provided the benefit of non-firm revenue from sales of pipeline transportation capacity. Under the prior rate plan, base rates were reduced to reflect the assumption that the company would realize these revenues. Under the 2006 rate plan, such revenues were used to offset the cost of gas to be recovered from customers. The rate plan continued the provisions pursuant to which the company recovers its cost of purchasing gas and the provisions pursuant to which the effects of weather on gas income are moderated.

The rate plan provided that if the actual amount of pension or other postretirement benefit costs, environmental remediation costs, property taxes and certain other costs vary from the respective amount for each such cost reflected in gas rates (cost reconciliations), the company would defer recognition of the variation in income and, as the case may be, establish a regulatory asset or liability for recovery from, or refund to, customers of the variation (86 percent of the variation, in the case of property tax differences due to assessment changes).

Earnings attributable to its gas business excluding any revenue reductions (O&R Adjusted Earnings) in excess of an 11 percent annual return on common equity (based upon the actual average common equity ratio, subject to a maximum 50 percent of capitalization) were to be allocated as follows: above an 11 percent return were to be used to offset up to one-half of any regulatory asset to be recorded in that year resulting from the cost reconciliations (discussed in the preceding paragraph). One-half of any remaining O&R Adjusted Earnings between 11 and 12 percent return were to be retained by the company, with the balance deferred for the benefit of customers. Thirty-five percent of any remaining O&R Adjusted Earnings between a 12 and 14 percent return were to be retained by the company, with the balance deferred for the benefit of customers. Any remaining O&R Adjusted Earnings above a 14 percent return were to be deferred for the benefit of customers. For purposes of these earnings sharing provisions, if in any rate year O&R Adjusted Earnings was less than 11 percent, the shortfall was deducted from O&R Adjusted Earnings for the other rate years. The earnings sharing thresholds were to each be reduced by 20 basis points if certain objectives relating to the company's retail choice program are not met. O&R adjusted earnings were not in excess of the 11 percent target return on equity for the rate years ended October 31, 2009, and 2008.

The rate plan also included up to $1 million of potential earnings adjustments in the first year of the agreement, increasing up to $1.2 million, if the company did not comply with certain requirements regarding gas main protection and customer service. O&R recorded a regulatory liability of $0.4 million for not complying with certain requirements regarding safety and customer service for the rate years ended October 31, 2008. The company met these requirements for the rate year ended October 31, 2009.

In October 2009, the NYSPSC adopted a June 2009 Joint Proposal among O&R, NYSPSC staff and other parties. As approved, the Joint Proposal establishes a gas rate plan that covers the three-year period November 1, 2009 through October 31, 2012 and provides for increases in base rates of $9 million in each of the first two years and $4.6 million in the third year, with an additional $4.3 million to be collected through a surcharge in the third rate year. The rate plan reflects the following major items:

•

an annual return on common equity of 10.4 percent;

•

most of any actual earnings above an 11.4 percent annual return on common equity (based upon the actual average common equity ratio, subject to a maximum 50 percent of capitalization) are to be applied to reduce regulatory assets. in 2010, the company did not defer any revenues under this provision and the corresponding provision;

•

deferral as a regulatory asset or liability, as the case may be, of differences between the actual level of certain expenses, including expenses for pension and other postretirement benefits, environmental remediation, property taxes and taxable and tax-exempt long-term debt, and amounts for those expenses reflected in rates; in 2010, the company accrued $2.7 million of revenues under this provision and the corresponding provision;

•

deferral as a regulatory liability of the revenue requirement impact (i.e., return on investment, depreciation and income taxes) of the amount, if any, by which average gas net plant balances are less than balances reflected in rates in 2010, the company accrued $1.5 million of revenues under this provision and the corresponding provision;

•

deferral as a regulatory asset of increases, if any over the course of the rate plan, in certain expenses above a 4 percent annual inflation rate, but only if the actual annual return on common equity is less than 10.4 percent;

•

implementation of a revenue decoupling mechanism; in 2010, the company accrued $0.8 million of revenues under this provision and the corresponding provision;

•

continuation of the provisions pursuant to which the company recovers its cost of purchasing gas and the provisions pursuant to which the effects of weather on gas income are moderated; and

•

potential negative earnings adjustments of up to $1.4 million annually if certain operations and customer service requirements are not met.

CECONY — Steam

In September 2006, the NYSPSC approved the June 2006 settlement agreement among CECONY, the staff of the NYSPSC and other parties. The settlement agreement established a rate plan that covered the two-year period October 1, 2006 through September 30, 2008. The rate plan provided for no changes in base rates or in the rate provisions pursuant to which the company recovers its fuel and purchased steam costs (the fuel adjustment clause), except for changes in the manner in which certain costs are recovered.

The rate plan provided that if the actual amount of pension or other postretirement benefit costs, environmental remediation costs, property taxes or interference costs is greater than the respective amount for each such cost reflected in steam rates, the company would recognize a regulatory asset for the difference (90 percent of the difference, in the case of property taxes and interference costs) and defer recognition in expense of the difference. If the actual amount of such costs had been less than the amount reflected in steam rates, the company would recognize a regulatory liability for the difference and decrease its revenues by the amount of such difference (90 percent of the difference, in the case of property taxes and interference costs). The company recognized a regulatory liability and increased expenses by $1.7 million under this provision in 2008.

Earnings attributable to the steam business, excluding the net revenue effect of steam sales related to colder-than-normal weather and certain other items, (Steam Adjusted Earnings) for a rate year in excess of 11 percent return on common equity (based upon the actual average common equity ratio, subject to a maximum of 50 percent of capitalization) were allocated as follows: between 11 and 12 percent were to be used first to offset up to one-half of any regulatory asset recorded in the year resulting from the cost reconciliations (discussed in the preceding paragraph) for the rate year. The company then could retain one-half of any remaining such Steam Adjusted Earnings, with the balance being deferred for the benefit of customers. Any Steam Adjusted Earnings in excess of a 12 percent return on common equity were to be used first to offset any regulatory asset resulting from the cost reconciliations, with the company retaining one-quarter of any remaining Steam Adjusted Earnings and the balance being deferred for the benefit of customers. The earnings sharing thresholds would each be reduced by 20 basis points if certain requirements are not met. Earnings for the rate year ended September 30, 2008 was below the 11 percent return on common equity.

The rate plan also included up to approximately $4 million of potential revenue reductions if the company did not comply with certain requirements regarding steam business development and certain other matters. There was no revenue reductions recorded for the rate year ending September 30, 2008.

In September 2008, the NYSPSC approved the June 2008 Joint Proposal among the company, the NYSPSC staff and other parties with respect to the rates the company can charge its customers for steam service. The Joint Proposal covers the period from October 1, 2008 through September 30, 2010. The Joint Proposal provides for steam rate increases of $43.7 million effective October 1, 2008 and 2009.

The Joint Proposal reflects the following major items:

•

an annual return on common equity of 9.3 percent;

•

any actual earnings above a 10.1 percent return on equity (based on actual average common equity ratio, subject to a 50 percent maximum) are to be shared as follows: half will be deferred for the benefit of customers and the other half is to be retained by the company (with half of the company's share subject to offset to reduce any regulatory assets for under-collections of property taxes) (earnings for the rate year ended September 30, 2009 did not exceed a 10.1 percent return on equity);

•

deferral as a regulatory asset or regulatory liability, as the case may be, of the difference between (i) actual costs for pension and other post-retirement benefits, environmental remediation, property taxes, certain tax-exempt debt, municipal infrastructure support and certain other costs and (ii) amounts for those costs reflected in rates (90 percent of the difference in the case of property taxes and interference costs) (the company decreased expenses by $14.9 million and by $14.4 million and increased expenses by $3.1 million under these provisions in 2010, 2009 and 2008, respectively);

•

deferral as a regulatory liability of the revenue requirement impact (i.e., return on investment, depreciation and income taxes) of the amount, if any, by which the actual capital expenditures related to steam production plant are less than amounts reflected in rates (there was no regulatory liability recorded for the rate year ended September 30, 2009 and $4 million regulatory liability recorded for the rate year ended September 30, 2010);

•

potential negative earnings adjustments (revenue reductions) of approximately $0.95 million to $1 million annually if certain business development, customer service and safety performance targets are not met (the company did not record any such adjustments in 2008) (there were no negative earnings adjustments recorded for the rate year ended September 30, 2010 and 2009);

•

amortization of certain regulatory assets and liabilities, the net effect of which will be a non-cash increase in steam revenues of $20.3 million over the two-year period covered by the Joint Proposal; and

•

continuation of the rate provisions pursuant to which the company recovers its fuel and purchased steam costs from customers.

In May 2010, CECONY, the NYSPSC staff and other parties entered into a Joint Proposal, with respect to the company's rates for steam service. The Joint Proposal, which was approved by the NYSPSC in September 2010, covers the three-year period October 2010 through September 2013 and provides for rate increases of $49.5 million, effective October 2010 and 2011, and $17.8 million, effective October 2012, with an additional $31.7 million to be collected through a surcharge in the rate year ending September 2013. The Joint Proposal reflects the following major items:

•

The same weighted average cost of capital, return on common equity (assuming, for the steam business, achievement of unspecified reductions in costs of $4.5 million, $3 million and $1.5 million in the rate years ending September 2011, 2012 and 2013, respectively), cost of long-term debt and common equity ratio provided for in the May 2010 Joint Proposal with respect to CECONY's gas business (discussed above) and average steam rate base of $1,589 million, $1,603 million and $1,613 million for the rate years ending September 2011, 2012 and 2013, respectively.

•

Deferral as a regulatory liability of the revenue requirement impact of the amount, if any, by which actual average net plant balances allocable to the company's steam business are less than the amounts reflected in rates for the respective category for each rate year. The amounts reflected in rates are:


	Rate Year Ending September 30,
*(Millions of Dollars)*	2011		2012		2013
Steam production	$	415	$	426	$	433
Steam distribution		521		534		543

•

Earnings sharing, expense deferral and potential refund ($6 million annually for steam) provisions as discussed above with respect to CECONY's gas business.

•

Continuation of the rate provisions pursuant to which the company recovers its cost of fuel and purchased steam from its steam customers.

•

Continuation of provisions for potential penalties (up to approximately $1 million annually) if certain steam customer service and system performance targets are not met.

The NYSPSC order requires CECONY, in its next steam rate filing, to propose a phase-in over a period of not more than seven years of an increase in the allocation to steam customers of the fuel costs for the company's East River Repowering Project (ERRP, which cogenerates electricity and steam) that are above the market value of the electric energy generated by ERRP.

Other Regulatory Matters

In February 2009, the NYSPSC commenced a proceeding to examine the prudence of certain CECONY expenditures (see "Investigations of Vendor Payments" in Note H). Pursuant to NYSPSC orders, a portion of the company's revenues (currently, $249 million, $32 million and $6 million on an annual basis for electric, gas and steam service, respectively) is being collected subject to potential refund to customers. At December 31, 2010, the company had collected an estimated $535 million from customers subject to potential refund in connection with this proceeding. In October 2010, a NYSPSC consultant reported its $21 million provisional assessment, which the company has disputed, of potential overcharges for construction work. The potential overcharges related to transactions that involved certain employees who were arrested and a contractor that performed work for the company. The NYSPSC's consultant is expected to continue to review the company's expenditures. The company is unable to estimate the amount, if any, of any such refund and, accordingly, has not established a regulatory liability for a refund.

In August 2009, the NYSPSC released a report on its management audit of the company. The NYSPSC is required to audit New York utilities every five years. The NYSPSC consultant that performed the audit identified areas for improvement, including with respect to the company's construction program, planning and business processes and regulatory relationships. In October 2009, the company filed with the NYSPSC the company's plan to implement the recommendations contained in the report. The company has implemented most of the recommendations.

Regulatory Assets and Liabilities

Regulatory assets and liabilities at December 31, 2010 and 2009 were comprised of the following items:


	Con Edison				CECONY
*(Millions of Dollars)*	2010		2009		2010		2009
Regulatory assets
Unrecognized pension and other postretirement costs	$	4,371	$	4,472	$	4,152	$	4,259
Future federal income tax		1,593		1,316		1,515		1,249
Environmental remediation costs		695		392		574		333
Surcharge for New York State Assessment		121		138		112		126
Net electric deferrals		156		82		156		82
Pension and other post-retirement benefits deferrals		138		101		90		49
Revenue taxes		145		120		140		116
Deferred derivative losses – long-term		74		106		48		75
Deferred storm costs		57		5		43		—
Property tax reconciliation		34		85		27		85
O&R transition bond charges		48		55		—		—
World Trade Center restoration costs		45		41		45		41
Workers' compensation		31		37		31		37
Other		135		153		125		138
Regulatory assets – long-term		7,643		7,103		7,058		6,590
Deferred derivative losses – current		190		141		151		104
Recoverable energy costs – current		13		31		—		—
Regulatory assets – current		203		172		151		104
Total Regulatory Assets	$	7,846	$	7,275	$	7,209	$	6,694
Regulatory liabilities
Allowance for cost of removal less salvage	$	422	$	371	$	350	$	303
Net unbilled revenue deferrals		136		91		136		91
Refundable energy costs		80		118		50		77
Revenue decoupling mechanism		32		—		32		—
New York State tax refund		30		—		30		—
Gain on sale of properties		29		24		29		24
Rate case amortizations		—		21		—		21
Electric rate case deferral		—		19		—		19
2005-2008 capital expenditure reserve		—		24		—		24
Other		186		161		156		144
Regulatory liabilities		915		829		783		703
Deferred derivative gains – current		4		9		3		8
Total Regulatory Liabilities	$	919	$	838	$	786	$	711

"Unrecognized pension and other postretirement costs" represents the net regulatory asset associated with the accounting rules for retirement benefits. See Note A.

"Net electric deferrals" represents the remaining unamortized balance of certain regulatory assets and liabilities of CECONY that were combined effective April 1, 2010 and are being amortized to income over a ten year period, in accordance with CECONY's March 2010 rate plan.

The increase in Regulatory Assets – Environmental Remediation Costs reflects an increased estimate of costs for site investigation and remediation. See Note G.

"Revenue taxes" represents the timing difference between taxes collected and paid by the Utilities to fund mass transportation.

Effective March 31, 2009, the NYSPSC authorized CECONY to accrue unbilled electric, gas and steam revenues. At December 31, 2009, CECONY has deferred the net margin on the unbilled revenues for the future benefit of customers by accruing an asset of $413 million for unbilled revenues, recording refundable energy cost regulatory liabilities of $187 million for the costs of fuel and purchased power related to services provided but not yet billed, and recording regulatory liabilities of $91 million for the difference between the unbilled revenues and energy cost liabilities. Also, $44 million of the regulatory asset established in 1989 for unbilled gas revenues has been offset against the unbilled revenue regulatory liability.

Capitalization

12 Months Ended

Dec. 31, 2010

Capitalization

Note C — Capitalization

Common Stock

At December 31, 2010 and 2009, Con Edison owned all of the issued and outstanding shares of common stock of the Utilities and the competitive energy businesses. CECONY owns 21,976,200 shares of Con Edison stock, which it purchased prior to 2001 in connection with Con Edison's stock repurchase plan. CECONY presents in the financial statements the cost of the Con Edison stock it owns as a reduction of common shareholder's equity.

Capitalization of Con Edison

The outstanding capitalization for each of the Companies is shown on its Consolidated Statement of Capitalization, and for Con Edison includes the Utilities' outstanding preferred stock and debt.

Preferred Stock of CECONY

As of December 31, 2010, 1,915,319 shares of CECONY's $5 Cumulative Preferred Stock (the "$5 Preferred") and 375,626 shares of its Cumulative Preferred Stock ($100 par value) were outstanding.

Dividends on the $5 Preferred Stock are $5 per share per annum, payable quarterly, and dividends on the Cumulative Preferred Stock are $4.65 per share per annum, payable quarterly. The preferred dividends must be declared by CECONY's Board of Trustees to become payable. See "Dividends" below.

With respect to any corporate action to be taken by a vote of shareholders of CECONY, Con Edison (which owns all of the 235,488,094 shares of CECONY's common stock that are outstanding) and the holders of the $5 Preferred are each entitled to one vote for each share held. Except as otherwise required by law, holders of the Cumulative Preferred Stock have no right to vote; provided, however, that if the $5 Preferred is no longer outstanding, the holders of the Cumulative Preferred Stock are entitled to one vote for each share with respect to any corporate action to be taken by a vote of the shareholders of CECONY. In addition, if dividends are in arrears for certain periods, the holders are entitled to certain rights with respect to the election of CECONY's Trustees. Without the consent of the holders of the Cumulative Preferred Stock, CECONY may not create or authorize any kind of stock ranking prior to the Cumulative Preferred Stock or, if such actions would affect the holders of the Cumulative Preferred Stock adversely, be a party to any consolidation or merger, create or amend the terms of the Cumulative Preferred Stock or reclassify the Cumulative Preferred Stock. CECONY may redeem the $5 Preferred at a redemption price of $105 per share and the Cumulative Preferred Stock at a redemption price of $101 per share (in each case, plus accrued and unpaid dividends). In the event of the dissolution, liquidation or winding up of the affairs of CECONY, before any distribution of capital assets could be made to the holders of the company's common stock, the holders of the $5 Preferred and the Cumulative Preferred Stock would each be entitled to receive $100 per share, in the case of an involuntary liquidation, or an amount equal to the redemption price per share, in the case of a voluntary liquidation, in each case together with all accrued and unpaid dividends.

Dividends

In accordance with NYSPSC requirements, the dividends that the Utilities generally pay are limited to not more than 100 percent of their respective income available for dividends calculated on a two-year rolling average basis. Excluded from the calculation of "income available for dividends" are non-cash charges to income resulting from accounting changes or charges to income resulting from significant unanticipated events. The restriction also does not apply to dividends paid in order to transfer to Con Edison proceeds from major transactions, such as asset sales, or to dividends reducing each utility subsidiary's equity ratio to a level appropriate to its business risk.

In addition, no dividends may be paid, or funds set apart for payment, on CECONY's common stock until all dividends accrued on the $5 Preferred Stock and Cumulative Preferred Stock have been paid, or declared and set apart for payment.

Long-term Debt

Long-term debt maturing in the period 2011-2015 is as follows:


*(Millions of Dollars)*	Con Edison		CECONY
2011	$	5	$	—
2012		305		300
2013		706		700
2014		481		475
2015		495		350

The Utilities have issued $269 million of tax-exempt debt through the New York State Energy Research and Development Authority (NYSERDA) that currently bear interest at a rate determined weekly and is subject to tender by bondholders for purchase by the Utilities. In 2010, CECONY issued $225 million of tax-exempt debt that is subject to mandatory tender in 2012.

The carrying amounts and fair values of long-term debt are:


	December 31,
	2010 *(in millions)*				2009 *(in millions)*
Long-Term Debt (including current portion)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Con Edison	$	10,676	$	11,795	$	10,585	$	11,009
CECONY	$	9,743	$	10,680	$	9,663	$	10,052

Fair values of long-term debt have been estimated primarily using available market information.

At December 31, 2010 and 2009, long-term debt of Con Edison included $32 million and $34 million, respectively, of Transition Bonds issued in 2004 by O&R's New Jersey utility subsidiary through a special purpose entity.

Significant Debt Covenants

The significant debt covenants under the financing arrangements for the notes of Con Edison and the debentures of CECONY are obligations to pay principal and interest when due, covenants not to consolidate with or merge into any other corporation unless certain conditions are met and, for Con Edison's notes, covenants that Con Edison shall continue its utility business in New York City and shall not permit Con Edison's ratio of consolidated debt to consolidated capital to exceed 0.675 to 1. Con Edison's notes are also subject to cross default provisions with respect to other indebtedness of Con Edison or its material subsidiaries having a then outstanding principal balance in excess of $100 million. CECONY's debentures have no cross default provisions. The tax-exempt financing arrangements of the Utilities are subject to covenants for the CECONY debentures discussed above and the covenants discussed below. The Companies believe that they were in compliance with their significant debt covenants at December 31, 2010.

The tax-exempt financing arrangements involved the issuance of uncollateralized promissory notes of the Utilities to NYSERDA in exchange for the net proceeds of a like amount of tax-exempt bonds with substantially the same terms sold to the public by NYSERDA. The tax-exempt financing arrangements include covenants with respect to the tax-exempt status of the financing, including covenants with respect to the use of the facilities financed. The arrangements include provisions for the maintenance of liquidity and credit facilities, the failure to comply with which would, except as otherwise provided, constitute an event of default with respect to the debt to which such provisions applied.

The failure to comply with debt covenants would, except as otherwise provided, constitute an event of default with respect to the debt to which such provisions applied. If an event of default were to occur, the principal and accrued interest on the debt to which such event of default applied and, in the case of the Con Edison notes, a make-whole premium might and, in the case of certain events of default would, become due and payable immediately.

The liquidity and credit facilities currently in effect for the tax-exempt financing include covenants that the ratio of debt to total capital of the obligated utility will not at any time exceed 0.65 to 1 and that, subject to certain exceptions, the utility will not mortgage, lien, pledge or otherwise encumber its assets. Certain of the facilities also include as events of default, defaults in payments of other debt obligations in excess of specified levels ($100 million for CECONY).

Short-Term Borrowing

12 Months Ended

Dec. 31, 2010

Short-Term Borrowing

Note D – Short-Term Borrowing

In June 2006, Con Edison and the Utilities entered into an Amended and Restated Credit Agreement (Credit Agreement) under which banks are committed to provide loans and letters of credit, on a revolving credit basis. In June 2007, the Credit Agreement, which was to expire in June 2011, was extended for an additional year. Under the Credit Agreement, there is a maximum of $2.25 billion ($2.2 billion in the additional year) of credit available, with the full amount available to CECONY and $1 billion available to Con Edison. The Credit Agreement supports the Companies' commercial paper programs. The Companies have not borrowed under the Credit Agreement. At December 31, 2010 and 2009, Con Edison and CECONY had no commercial paper outstanding.

The banks' commitments under the Credit Agreement are subject to certain conditions, including that there be no event of default. The commitments are not subject to maintenance of credit rating levels or the absence of a material adverse change. Upon a change of control of, or upon an event of default by one of the Companies, the banks may terminate their commitments with respect to that company and declare any amounts owed by that company under the Credit Agreement immediately due and payable. Events of default include the exceeding at any time of a ratio of consolidated debt to consolidated total capital of 0.65 to 1 (at December 31, 2010, this ratio was 0.49 to 1 for both Con Edison and CECONY); having liens on its assets in an aggregate amount exceeding 5 percent of its consolidated total capital, subject to certain exceptions; and the failure by the company, following any applicable notice period, to meet certain other customary covenants. The fees charged for the revolving credit facilities and any loans made or letters of credit issued under the Credit Agreement reflect the Companies' respective credit ratings. At December 31, 2010 and 2009, $197 million (including $145 million for CECONY) and $193 million (including $135 million for CECONY) of letters of credit were outstanding under the Credit Agreement, respectively.

See Note S for information about short-term borrowing between related parties.

Pension Benefits

12 Months Ended

Dec. 31, 2010

Pension Benefits

Note E — Pension Benefits

Con Edison maintains a tax-qualified, non-contributory pension plan that covers substantially all employees of CECONY and O&R and certain employees of Con Edison's competitive energy businesses. The plan is designed to comply with the Internal Revenue Code and the Employee Retirement Income Security Act of 1974. In addition, Con Edison maintains additional non-qualified supplemental pension plans.

Net Periodic Benefit Cost

The components of the Companies' net periodic benefit costs for 2010, 2009 and 2008 were as follows:


	Con Edison									CECONY
*(Millions of Dollars)*	2010			2009			2008			2010			2009			2008
Service cost – including administrative expenses	$	168		$	159		$	139		$	157		$	149		$	129
Interest cost on projected benefit obligation		556			525			515			521			492			482
Expected return on plan assets		(704	)		(691	)		(691	)		(670	)		(659	)		(660	)
Amortization of net actuarial loss		425			299			192			401			271			170
Amortization of prior service costs		8			8			8			6			7			7
NET PERIODIC BENEFIT COST	$	453		$	300		$	163		$	415		$	260		$	128
Amortization of regulatory asset*		2			3			4			2			3			4
TOTAL PERIODIC BENEFIT COST	$	455		$	303		$	167		$	417		$	263		$	132
Cost capitalized		(157	)		(109	)		(59	)		(146	)		(98	)		(50	)
Cost deferred		(115	)		(38	)		(40	)		(113	)		(32	)		(40	)
Cost charged (credited) to operating expenses	$	183		$	156		$	68		$	158		$	133		$	42

*	Relates to increases in CECONY's pension obligations of $33 million from a 1993 special retirement program and $45 million from a 1999 special retirement program.

Funded Status

The funded status at December 31, 2010, 2009 and 2008 was as follows:


	Con Edison									CECONY
*(Millions of Dollars)*	2010			2009			2008			2010			2009			2008
CHANGE IN PROJECTED BENEFIT OBLIGATION
Projected benefit obligation at beginning of year	$	9,408		$	9,383		$	8,696		$	8,803		$	8,793		$	8,137
Service cost – excluding administrative expenses		160			158			137			149			147			128
Interest cost on projected benefit obligation		556			525			515			521			492			482
Plan amendments		6			5			—			—			—			—
Net actuarial (gain)/loss		636			(215	)		468			607			(216	)		449
Benefits paid		(459	)		(448	)		(433	)		(427	)		(413	)		(403	)
PROJECTED BENEFIT OBLIGATION AT END OF YEAR	$	10,307		$	9,408		$	9,383		$	9,653		$	8,803		$	8,793
CHANGE IN PLAN ASSETS
Fair value of plan assets at beginning of year	$	6,877		$	5,836		$	8,400		$	6,544		$	5,562		$	8,025
Actual return on plan assets		888			1,220			(2,263	)		846			1,166			(2,158	)
Employer contributions		443			291			154			404			249			119
Benefits paid		(459	)		(448	)		(433	)		(427	)		(413	)		(403	)
Administrative expenses		(28	)		(22	)		(22	)		(27	)		(20	)		(21	)
FAIR VALUE OF PLAN ASSETS AT END OF YEAR	$	7,721		$	6,877		$	5,836		$	7,340		$	6,544		$	5,562
FUNDED STATUS	$	(2,586	)	$	(2,531	)	$	(3,547	)	$	(2,313	)	$	(2,259	)	$	(3,231	)
Unrecognized net loss		3,915			3,868			4,890			3,716			3,666			4,641
Unrecognized prior service costs		38			40			44			22			28			35
Accumulated benefit obligation		9,319			8,598			8,559			8,694			8,015			7,993

The increase in the pension plan's projected benefit obligation was a primary driver in the increased pension liability at Con Edison and CECONY of $55 million and $54 million, respectively, compared with December 31, 2009. For Con Edison, this increase in pension liability resulted in an increase to regulatory assets of $49 million for unrecognized net losses and unrecognized prior service costs associated with the Utilities consistent with the accounting rules for regulated operations and a credit to OCI of $3 million (net of taxes) for the unrecognized net losses and unrecognized prior service costs associated with the competitive energy businesses and O&R's New Jersey and Pennsylvania utility subsidiaries.

For CECONY, the increase in pension liability resulted in an increase to regulatory assets of $43 million for unrecognized net losses and unrecognized prior service costs associated with the Utilities consistent with the accounting rules for regulated operations and a debit to OCI of $1 million for unrecognized net losses and unrecognized prior service costs associated with the competitive energy businesses.

A portion of the estimated net loss and prior service cost for the pension plan, equal to $536 million and $8 million, respectively, will be amortized from accumulated OCI and the regulatory asset into net periodic benefit cost over the next year for Con Edison. Included in these amounts are $508 million and $6 million, respectively, for CECONY.

At December 31, 2010 and 2009, Con Edison's investments include $119 million and $85 million, respectively, held in external trust accounts for benefit payments pursuant to the supplemental retirement plans. Included in these amounts for CECONY were $109 million and $75 million, respectively. See Note P. The accumulated benefit obligations for the supplemental retirement plans for Con Edison and CECONY were $192 million and $158 million as of December 31, 2010 and $175 million and $142 million as of December 31, 2009, respectively.

Assumptions

The actuarial assumptions were as follows:


	2010			2009			2008
Weighted-average assumptions used to determine benefit obligations at December 31:
Discount rate		5.60	%		6.05	%		5.75	%
Rate of compensation increase
– CECONY		4.35	%		4.00	%		4.00	%
– O&R		4.25	%		4.00	%		4.00	%
Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31:
Discount rate		6.05	%		5.75	%		6.00	%
Expected return on plan assets		8.50	%		8.50	%		8.50	%
Rate of compensation increase
– CECONY		4.00	%		4.00	%		4.00	%
– O&R		4.00	%		4.00	%		4.00	%

The expected return assumption reflects anticipated returns on the plan's current and future assets. The Companies' expected return was based on an evaluation of the current environment, market and economic outlook, relationships between the economy and asset class performance patterns, and recent and long-term trends in asset class performance. The projections were based on the plan's target asset allocation and were adjusted for historical and expected experience of active portfolio management results compared to benchmark returns.

Discount Rate Assumption

To determine the assumed discount rate, the Companies use a model that produces a yield curve based on yields on selected highly rated (Aaa or Aa, by Moody's Investors Service) corporate bonds. Bonds with insufficient liquidity, bonds with questionable pricing information and bonds that are not representative of the overall market are excluded from consideration. For example, the bonds used in the model cannot be callable, they must have a price between 50 and 200, the yield must lie between 1 percent and 20 percent, and the amount of the issue must be in excess of $100 million. The spot rates defined by the yield curve and the plan's projected benefit payments are used to develop a weighted average discount rate.

Expected Benefit Payments

Based on current assumptions, the Companies expect to make the following benefit payments over the next ten years:


*(Millions of Dollars)*	2011		2012		2013		2014		2015		2016-2020
Con Edison	$	501	$	528	$	554	$	580	$	605	$	3,376
CECONY		467		492		516		541		563		3,150

Expected Contributions

Based on estimates as of December 31, 2010, the Companies do not expect to be required under funding regulations and laws to make any contributions to the pension plan during 2011. The Companies' policy is to fund their accounting cost to the extent tax deductible, therefore, Con Edison expects to make discretionary contributions of $543 million including $502 million for CECONY, to the pension plan during 2011.

Plan Assets

The asset allocations for the pension plan at the end of 2010, 2009 and 2008, and the target allocation for 2011 are as follows:


	Target Allocation Range		Plan Assets at December 31
Asset Category	2011		2010			2009			2008
Equity Securities		57% - 73%		67	%		67	%		59	%
Debt Securities		21% - 33%		28	%		28	%		33	%
Real Estate		5% - 11%		5	%		5	%		8	%
Total		100%		100	%		100	%		100	%

Con Edison has established a pension trust for the investment of assets to be used for the exclusive purpose of providing retirement benefits to participants and beneficiaries and payment of plan expenses.

Pursuant to resolutions adopted by Con Edison's Board of Directors, the Management Development and Compensation Committee of the Board of Directors (the Committee) has general oversight responsibility for Con Edison's pension and other employee benefit plans. The pension plan's named fiduciaries have been granted the authority to control and manage the operation and administration of the plans, including overall responsibility for the investment of assets in the trust and the power to appoint and terminate investment managers. The named fiduciaries consist of Con Edison's chief executive, financial and accounting officers.

The investment objectives of the Con Edison pension plan are to maintain a level and form of assets adequate to meet benefit obligations to participants, maximize the long-term total return on the trust assets within a prudent level of risk and maintain a level of volatility that is not expected to have a material impact on the Company's expected contribution and expense or the Company's ability to meet plan obligations. The assets of the plan have no significant concentration of risk in one country (other than the United States), industry or entity.

The strategic asset allocation is intended to meet the objectives of the pension plan by diversifying its funds across asset classes, investment styles and fund managers. An asset/liability study typically is conducted every few years to determine whether the current strategic asset allocation continues to represent the appropriate balance of expected risk and reward for the plan to meet expected liabilities. Each study considers the investment risk of the asset allocation and determines the optimal asset allocation for the plan. The target asset allocation for 2010 reflects the results of such a study conducted in 2007.

Individual fund managers operate under written guidelines provided by Con Edison, which cover such areas as investment objectives, performance measurement, permissible investments, investment restrictions, trading and execution, and communication and reporting requirements. Con Edison management regularly monitors, and the named fiduciaries review and report to the Committee regarding, manager performance, total fund performance, and compliance with asset allocation guidelines. Management changes fund managers and rebalances the portfolio as appropriate. At the direction of the named fiduciaries, such changes are reported to the Committee.

In accordance with the accounting rules for pensions that became effective December 2009, the Company is providing the following disclosures regarding the fair value of the pension trust's investments.

Assets measured at fair value on a recurring basis are summarized below under a three-level hierarchy established by the accounting rules which define the levels within the hierarchy as follows:

•

Level 1 – Consists of fair value measurements whose value is based on quoted prices in active markets for identical assets or liabilities.

•

Level 2 – Consists of fair value measurements whose value is based on significant other observable inputs.

•

Level 3 – Consists of fair value measurements whose value is based on significant unobservable inputs.

The fair values of the pension plan assets at December 31, 2010 by asset category are as follows:


*(Millions of Dollars)*	Level 1			Level 2			Level 3			Total
U.S. Equity(a)	$	3,935		$	—		$	—		$	3,935
International Equity(b)		1,249			234			—			1,483
U.S. Government Issues(c)		—			1,300			—			1,300
Corporate Bonds(d)		—			571			129			700
Structured Assets(e)		—			—			87			87
Other Fixed Income(f)		—			31			66			97
Real Estate(g)		—			—			398			398
Cash and Cash Equivalents(h)		3			232			—			235
Total investments	$	5,187		$	2,368		$	680		$	8,235
Funds for retiree health benefits(i)		(226	)		(103	)		(30	)		(359	)
Investments (excluding funds for retiree health benefits)	$	4,961		$	2,265		$	650		$	7,876
Pending activities(j)											(155	)
Total fair value of plan net assets										$	7,721

(a)	U.S. Equity includes both actively- and passively-managed assets with investments in domestic equity index funds, actively-managed small-capitalization equities, rights and warrants.

(b)	International Equity includes international equity index funds, actively-managed international equities, rights and warrants.

(c)	U.S. Government Issues include agency and treasury securities.

(d)	Corporate Bonds held in institutional mutual funds which are measured at Net Asset Value (NAV) are classified as Level 3.

(e)	Structured Assets are measured using broker quotes and investment manager proprietary models and include commercial-mortgage-backed securities, collateralized mortgage obligations and asset-backed securities.

(f)	Other Fixed Income includes emerging market debt valued using broker quotes, municipal bonds, sovereign debt, regional governments and government agencies.

(g)	Real Estate investments include real estate funds based on appraised values that are broadly diversified by geography and property type.

(h)	Cash and Cash Equivalents include short term investments, money markets and foreign currency.

(i)

The Companies set aside funds for retiree health benefits through a separate account within the pension trust, as permitted under Section 401(h) of the Internal Revenue Code of 1986, as amended. In accordance with the Code, the plan's investments in the 401(h) account may not be used for, or diverted to, any purpose other than providing health benefits for retirees. The net assets held in the 401(h) account are calculated based on a pro-rata percentage allocation of the net assets in the pension plan. The related obligations for health benefits are not included in the pension plan's obligations and are included in the Companies' other postretirement benefit obligation. See Note F.

(j)	Pending activities include security purchases and sales that have not settled, interest and dividends that have not been received and reflects adjustments for available estimates at year end.

The table below provides a reconciliation of the beginning and ending net balances for assets at December 31, 2010 classified as Level 3 in the fair value hierarchy.


*(Millions of Dollars)*	Beginning Balance as of January 1, 2010			Assets Still Held at Reporting Date – Unrealized Gains (Losses)			Assets Sold During the Period – Realized Gains			Purchases Sales and Settlements			Ending Balance as of December 31, 2010
U.S. Equity	$	—			—			—			—		$	—
International Equity		1			1			(1	)		(1	)		—
Corporate Bonds		143			(3	)		9			(20	)		129
Structured Assets		91			15			(6	)		(13	)		87
Other Fixed Income		46			—			2			18			66
Swaps		(3	)		2			(1	)		2			—
Real Estate		344			47			—			7			398
Total investments	$	622			62			3			(7	)	$	680
Funds for retiree health benefits		(28	)		(3	)		(2	)		3			(30	)
Investments (excluding funds for retiree health benefits)	$	594		$	59		$	1		$	(4	)	$	650

The fair values of the pension plan assets at December 31, 2009 by asset category are as follows:


*(Millions of Dollars)*	Level 1			Level 2			Level 3			Total
U.S. Equity(a)	$	3,470		$	—		$	—		$	3,470
International Equity(b)		1,140			196			1			1,337
U.S. Government Issues(c)		—			1,255			—			1,255
Corporate Bonds(d)		—			435			143			578
Structured Assets(e)		—			—			91			91
Other Fixed Income(f)		—			10			46			56
Swaps(g)		—			—			(3	)		(3	)
Real Estate(h)		—			—			344			344
Cash and Cash Equivalents(i)		197			141			—			338
Total investments	$	4,807		$	2,037		$	622		$	7,466
Funds for retiree health benefits(j)		(215	)		(91	)		(28	)		(334	)
Investments (excluding funds for retiree health benefits)	$	4,592		$	1,946		$	594		$	7,132
Pending activities(k)											(255	)
Total fair value of plan net assets										$	6,877

(a)	U.S. Equity includes both actively- and passively-managed assets with investments in domestic equity index funds, actively-managed small-capitalization equities, rights and warrants.

(b)	International Equity includes international equity index funds, actively-managed international equities, rights and warrants.

(c)	U.S. Government Issues include agency and treasury securities.

(d)	Corporate Bonds held in institutional mutual funds which are measured at Net Asset Value (NAV) are classified as Level 3.

(e)	Structured Assets are measured using broker quotes and investment manager proprietary models and include commercial-mortgage-backed securities, collateralized mortgage obligations and asset-backed securities.

(f)	Other Fixed Income includes emerging market debt valued using broker quotes, municipal bonds, sovereign debt, regional governments and government agencies.

(g)	Swaps include total return swaps, interest rate swaps, credit default swaps and swap collateral. Level 3 Swaps are valued using proprietary investment manager models.

(h)	Real Estate investments include real estate funds based on appraised values that are broadly diversified by geography and property type.

(i)	Cash and Cash Equivalents include short term investments, money markets and foreign currency.

(j)

The Companies set aside funds for retiree health benefits through a separate account within the pension trust, as permitted under Section 401(h) of the Internal Revenue Code of 1986, as amended. In accordance with the Code, the plan's investments in the 401(h) account may not be used for, or diverted to, any purpose other than providing health benefits for retirees and their beneficiaries. The net assets held in the 401(h) account are calculated based on a pro-rata percentage allocation of the net assets in the pension plan. The related obligations for health benefits are not included in the pension plan's obligations and are included in the other postretirement benefit obligation. See Note F.

(k)	Pending activities include security purchases and sales that have not settled and interest and dividends that have not been received.

The table below provides a reconciliation of the beginning and ending net balances for assets at December 31, 2009 classified as Level 3 in the fair value hierarchy.


*(Millions of Dollars)*	Beginning Balance as of January 1, 2009			Assets Still Held at Reporting Date – Unrealized Gains (Losses)			Assets Sold During the Period – Realized Gains			Purchases Sales and Settlements			Ending Balance as of December 31, 2009
U.S. Equity	$	1		$	2		$	(2	)	$	(1	)	$	—
International Equity		—			—			—			1			1
Corporate Bonds		172			35			(7	)		(57	)		143
Structured Assets		194			93			(70	)		(126	)		91
Other Fixed Income		52			2			1			(9	)		46
Swaps		(32	)		13			(51	)		67			(3	)
Options		5			(4	)		4			(5	)		—
Real Estate		515			(177	)		—			6			344
Total investments	$	907		$	(36	)	$	(125	)	$	(124	)	$	622
Funds for retiree health benefits		(41	)		2			6			5			(28	)
Investments (excluding funds for retiree health benefits)	$	866		$	(34	)	$	(119	)	$	(119	)	$	594

The Companies also offer a defined contribution savings plan that covers substantially all employees and made contributions to the plan as follows:


	For the Years Ended December 31
*(Millions of Dollars)*	2010		2009		2008
Con Edison	$	19	$	19	$	21
CECONY		17		17		19

Other Postretirement Benefits

12 Months Ended

Dec. 31, 2010

Other Postretirement Benefits

Note F – Other Postretirement Benefits

The Utilities currently have contributory comprehensive hospital, medical and prescription drug programs for all retirees, their dependents and surviving spouses.

CECONY also has a contributory life insurance program for bargaining unit employees and provides basic life insurance benefits up to a specified maximum at no cost to retired management employees. O&R has a non-contributory life insurance program for retirees. Certain employees of Con Edison's competitive energy businesses are eligible to receive benefits under these programs.

Net Periodic Benefit Cost

The components of the Companies' net periodic postretirement benefit costs for 2010, 2009 and 2008 were as follows:


	Con Edison									CECONY
*(Millions of Dollars)*	2010			2009			2008			2010			2009			2008
Service cost	$	24		$	22		$	20		$	19		$	18		$	16
Interest cost on accumulated other postretirement benefit obligation		91			95			95			80			84			84
Expected return on plan assets		(86	)		(86	)		(86	)		(78	)		(78	)		(79	)
Amortization of net actuarial loss		92			74			68			85			65			59
Amortization of prior service cost		(12	)		(12	)		(12	)		(14	)		(14	)		(14	)
Amortization of transition obligation		3			3			3			3			3			4
NET PERIODIC POSTRETIREMENT BENEFIT COST	$	112		$	96		$	88		$	95		$	78		$	70
Cost capitalized		(39	)		(35	)		(32	)		(33	)		(29	)		(27	)
Cost charged/(deferred)		4			3			(11	)		1			1			(9	)
Cost charged to operating expenses	$	77		$	64		$	45		$	63		$	50		$	34

Funded Status

The funded status of the programs at December 31, 2010, 2009 and 2008 were as follows:


	Con Edison									CECONY
*(Millions of Dollars)*	2010			2009			2008			2010			2009			2008
CHANGE IN BENEFIT OBLIGATION
Benefit obligation at beginning of year	$	1,697		$	1,702		$	1,630		$	1,495		$	1,495		$	1,433
Service cost		24			22			20			19			18			16
Interest cost on accumulated postretirement benefit obligation		91			95			95			80			84			84
Net actuarial loss/(gain)		(68	)		(14	)		46			(77	)		(3	)		44
Benefits paid and administrative expenses		(138	)		(141	)		(121	)		(126	)		(130	)		(111	)
Participant contributions		29			26			25			28			25			24
Medicare prescription benefit		7			7			7			7			6			5
BENEFIT OBLIGATION AT END OF YEAR	$	1,642		$	1,697		$	1,702		$	1,426		$	1,495		$	1,495
CHANGE IN PLAN ASSETS
Fair value of plan assets at beginning of year	$	866		$	737		$	988		$	777		$	668		$	907
Actual return on plan assets		89			153			(233	)		78			137			(215	)
Employer contributions		96			86			77			85			73			63
Participant contributions		29			26			25			28			25			24
Benefits paid		(138	)		(136	)		(120	)		(129	)		(126	)		(111	)
FAIR VALUE OF PLAN ASSETS AT END OF YEAR	$	942		$	866		$	737		$	839		$	777		$	668
FUNDED STATUS	$	(700	)	$	(831	)	$	(965	)	$	(587	)	$	(718	)	$	(827	)
Unrecognized net loss		483			646			799			440			601			728
Unrecognized prior service costs		(10	)		(23	)		(35	)		(26	)		(40	)		(54	)
Unrecognized net transition liability at January 1, 1993		7			11			15			7			11			15

The increase in the value of other postretirement benefit plan assets was a primary driver in the decreased liability for other postretirement benefits at Con Edison and CECONY of $131 million compared with December 31, 2009. For Con Edison, this decrease in liability resulted in a decrease to regulatory assets of $151 million for unrecognized net losses and unrecognized prior service costs associated with the Utilities consistent with the accounting rules for regulated operations and a credit to OCI of $1 million (net of taxes) for the unrecognized net losses and unrecognized prior service costs associated with the competitive energy businesses and O&R's New Jersey and Pennsylvania utility subsidiaries.

For CECONY, the increase in the value of other postretirement benefit plan assets resulted in a decrease to regulatory assets of $150 million for unrecognized net losses and unrecognized prior service costs associated with the company consistent with the accounting rules for regulated operations and a debit to OCI of $1 million (net of taxes) for unrecognized net losses and unrecognized prior service costs associated with the competitive energy businesses.

A portion of the estimated net loss, prior service costs and transition obligation for the other postretirement benefits, equal to $92 million, $(10) million and $4 million, respectively, will be amortized from accumulated OCI and the regulatory asset into net periodic benefit cost over the next year for Con Edison. Included in these amounts are $83 million, $(11) million and $3 million, respectively, for CECONY.

Assumptions

The actuarial assumptions were as follows:


	2010			2009			2008
Weighted-average assumptions used to determine benefit obligations at December 31:
Discount Rate		5.40	%		5.95	%		5.75	%
Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31:
Discount Rate		5.95	%		5.75	%		6.00	%
Expected Return on Plan Assets
Tax-Exempt		8.50	%		8.50	%		8.50	%
Taxable
CECONY		7.50	%		7.50	%		7.50	%
O&R		8.00	%		8.00	%		8.00	%

Refer to Note E for descriptions of the basis for determining the expected return on assets, investment policies and strategies, and the assumed discount rate.

The health care cost trend rate used to determine net periodic benefit cost for the year ended December 31, 2010 was 6.5 percent, which is assumed to decrease gradually to 4.5 percent by 2014 and remain at that level thereafter. The health care cost trend rate used to determine benefit obligations as of December 31, 2010 was 6.0 percent, which is assumed to decrease gradually to 4.5 percent by 2014 and remain at that level thereafter.

A one-percentage point change in the assumed health care cost trend rate would have the following effects at December 31, 2011:


	Con Edison					CECONY
	1-Percentage-Point
(Millions of Dollars)	Increase		Decrease			Increase		Decrease
Effect on accumulated other postretirement benefit obligation	$	27	$	(11	)	$	3	$	9
Effect on service cost and interest cost components for 2010		2		(1	)		—		1

Expected Benefit Payments

Based on current assumptions, the Companies expect to make the following benefit payments over the next ten years:


*(Millions of Dollars)*	2011		2012		2013		2014		2015		2016-2020
GROSS BENEFIT PAYMENTS
Con Edison	$	123	$	126	$	128	$	130	$	131	$	658
CECONY		111		113		115		117		117		578
MEDICARE PRESCRIPTION BENEFIT RECEIPTS
Con Edison	$	11	$	12	$	13	$	14	$	15	$	88
CECONY		10		11		12		13		13		79

Expected Contributions

Based on estimates as of December 31, 2010, Con Edison expects to make a contribution of $93 million, including $81 million for CECONY, to the other postretirement benefit plans in 2011

Plan Assets

The asset allocations for CECONY's other postretirement benefit plans at the end of 2010, 2009 and 2008, and the target allocation for 2011 are as follows:


	Target Allocation Range			Plan Assets at December 31
Asset Category	2011			2010			2009			2008
Equity Securities		57	% - 73%		67	%		66	%		56	%
Debt Securities		26	% - 44%		33	%		34	%		44	%
Total		100	%		100	%		100	%		100	%

Con Edison has established postretirement health and life insurance benefit plan trusts for the investment of assets to be used for the exclusive purpose of providing other postretirement benefits to participants and beneficiaries.

Refer to Note E for a discussion of Con Edison's investment policy for its benefit plans.

The fair values of the plan assets at December 31, 2010 by asset category (see description of levels in Note E) are as follows:


*(Millions of Dollars)*	Level 1		Level 2		Level 3		Total
U.S. Equity(a)	$	118	$	172	$	—	$	290
International Equity(b)		—		107		—		107
Other Fixed Income(c)		—		—		189		189
Cash and Cash Equivalents(d)		—		11		—		11
Total investments	$	118	$	290	$	189	$	597
Funds for retiree health benefits(e)		226		103		30		359
Investments (including funds for retiree health benefits)	$	344	$	393	$	219	$	956
Pending activities(f)								(14	)
Total fair value of plan net assets							$	942

(a)	U.S. Equity includes both actively- and passively-managed assets with investments in domestic equity index funds and commingled funds.

(b)	International Equity includes commingled international equity funds.

(c)	Other Fixed Income includes commingled funds, which are valued at Net Asset Value (NAV).

(d)	Cash and Cash Equivalents include short term investments and money markets.

(e)

(f)	Pending activities include security purchases and sales that have not settled, interest and dividends that have not been received, and reflects adjustments for available estimates at year end.

The table below provides a reconciliation of the beginning and ending net balances for assets at December 31, 2010 classified as Level 3 in the fair value hierarchy.


*(Millions of Dollars)*	Beginning Balance as of January 1, 2010		Assets Still Held at Reporting Date – Unrealized Gains (Losses)		Assets Sold During the Period – Realized Gains			Purchases Sales and Settlements			Ending Balance as of December 31, 2010
Other Fixed Income	$	173	$	11	$	1		$	4		$	189
Insurance Contracts		8		—		(1	)		(7	)		—
Total investments	$	181	$	11	$	—		$	(3	)	$	189
Funds for retiree health benefits		28		3		2			(3	)		30
Investments (including funds for retiree health benefits)	$	209	$	14	$	2		$	(6	)	$	219

The fair values of the plan assets at December 31, 2009 by asset category are as follows:


*(Millions of Dollars)*	Level 1		Level 2		Level 3		Total
U.S. Equity(a)	$	101	$	143	$	—	$	244
International Equity(b)		—		92		—		92
Other Fixed Income(c)		—		—		173		173
Insurance Contracts(d)		—		—		8		8
Cash and Cash Equivalents(e)		—		9		—		9
Total investments	$	101	$	244	$	181	$	526
Funds for retiree health benefits(f)		215		91		28		334
Investments (including funds for retiree health benefits)	$	316	$	335	$	209	$	860
Pending activities(g)								6
Total fair value of plan net assets							$	866

(a)	U.S. Equity includes both actively-and passively-managed assets with investments in domestic equity index funds and commingled funds.

(b)	International Equity includes commingled international equity funds.

(c)	Other Fixed Income includes commingled funds, which are valued at Net Asset Value (NAV).

(d)	Insurance Contracts represent the cash surrender value of life insurance policies. The contracts are measured at NAV, adjusted for fees charged by the insurance company.

(e)	Cash and Cash Equivalents include short term investments and money markets.

(f)

The Companies set aside funds for retiree health benefits through a separate account within the pension trust, as permitted under Section 401(h) of the Internal Revenue Code of 1986, as amended. In accordance with the Code, the plan's investments in the 401(h) account may not be used for, or diverted to, any purpose other than providing health benefits for retirees and their beneficiaries. The net assets held in the 401(h) account are calculated based on a pro-rata percentage allocation of the net assets in the pension plan. The related obligations for health benefits are not included in the pension plan's obligations and are included in the other postretirement benefit obligation. See Note E.

(g)	Pending activities include security purchases and sales that have not settled and interest and dividends that have not been received.

The table below provides a reconciliation of the beginning and ending net balances for assets at December 31, 2009 classified as Level 3 in the fair value hierarchy.


*(Millions of Dollars)*	Beginning Balance as of January 1, 2009		Assets Still Held at Reporting Date – Unrealized Gains (Losses)			Assets Sold During the Period – Realized Gains			Purchases Sales and Settlements			Ending Balance as of December 31, 2009
Other Fixed Income	$	197	$	11		$	3		$	(38	)	$	173
Insurance Contracts		8		—			—			—			8
Total investments	$	205	$	11		$	3		$	(38	)	$	181
Funds for retiree health benefits		41		(2	)		(6	)		(5	)		28
Investments (including funds for retiree health benefits)	$	246	$	9		$	(3	)	$	(43	)	$	209

Effect of Medicare Prescription Benefit

The Medicare Prescription Drug, Improvement and Modernization Act of 2003 created a benefit for certain employers who provide postretirement drug programs. The accounting rules for retirement benefits provide accounting and disclosure requirements relating to the Act. The Companies' actuaries have determined that each of their prescription drug plans provides a benefit that is at least actuarially equivalent to the Medicare prescription drug plan and projections indicate that this will be the case for 20 years; therefore, the Companies are eligible to receive the benefit that the Act makes available. When the plans' benefits are no longer actuarially equivalent to the Medicare plan, 25 percent of the retirees in each plan are assumed to begin to decline participation in the Companies' prescription programs.

In March 2010, the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010 became law. In the first half of 2010, the Companies reduced their deferred tax asset to reflect the laws' repeal, effective 2013, of the deduction for federal income tax purposes of the portion of the cost of an employer's retiree prescription drug coverage for which the employer received a benefit under the Medicare Prescription Drug Improvement and Modernization Act of 2003. For CECONY, the reductions in its deferred tax asset of $33 million had no effect on net income because a regulatory asset in a like amount on a pre-tax basis was established to reflect future recovery from customers of the increased cost of its retiree prescription drug coverage resulting from the loss of the tax deduction. For O&R's New York electric and gas services the reductions in their deferred tax assets of $3 million had no effect on net income because a regulatory asset in a like amount on a pre-tax basis was established to reflect future recovery from customers of the increased cost of their retiree prescription drug coverage resulting from the loss of the tax deduction. For RECO and Pike County Light & Power Company, the reduction in their deferred tax assets of $1 million was taken as a charge to net income. The impact on Con Edison's deferred tax assets for its other businesses was not material to its results of operations.

Environmental Matters

12 Months Ended

Dec. 31, 2010

Environmental Matters

Note G — Environmental Matters

Superfund Sites

Hazardous substances, such as asbestos, polychlorinated biphenyls (PCBs) and coal tar, have been used or generated in the course of operations of the Utilities and their predecessors and are present at sites and in facilities and equipment they currently or previously owned, including sites at which gas was manufactured or stored.

The Federal Comprehensive Environmental Response, Compensation and Liability Act of 1980 and similar state statutes (Superfund) impose joint and several liability, regardless of fault, upon generators of hazardous substances for investigation and remediation costs (which include costs of demolition, removal, disposal, storage, replacement, containment, and monitoring) and natural resource damages. Liability under these laws can be material and may be imposed for contamination from past acts, even though such past acts may have been lawful at the time they occurred. The sites at which the Utilities have been asserted to have liability under these laws, including their manufactured gas plant sites and any neighboring areas to which contamination may have migrated, are referred to herein as "Superfund Sites."

For Superfund Sites where there are other potentially responsible parties and the Utilities are not managing the site investigation and remediation, the accrued liability represents an estimate of the amount the Utilities will need to pay to investigate and, where determinable, discharge their related obligations. For Superfund Sites (including the manufactured gas plant sites) for which one of the Utilities is managing the investigation and remediation, the accrued liability represents an estimate of the company's share of undiscounted cost to investigate the sites and, for sites that have been investigated in whole or in part, the cost to remediate the sites, if remediation is necessary and if a reasonable estimate of such cost can be made. Remediation costs are estimated in light of the information available, applicable remediation standards, and experience with similar sites.

The accrued liabilities and regulatory assets related to Superfund Sites at December 31, 2010 and 2009 were as follows:


	*Con Edison*				*CECONY*
*(Millions of Dollars)*	2010		2009		2010		2009
Accrued Liabilities:
Manufactured gas plant sites	$	446	$	164	$	327	$	112
Other Superfund Sites		66		48		65		47
Total	$	512	$	212	$	392	$	159
Regulatory assets	$	692	$	388	$	571	$	329

Most of the accrued Superfund Site liability relates to sites that have been investigated, in whole or in part. However, for some of the sites, the extent and associated cost of the required remediation has not yet been determined. As investigations progress and information pertaining to the required remediation becomes available, the Utilities expect that additional liability may be accrued, the amount of which is not presently determinable but may be material. Under their current rate agreements, the Utilities are permitted to recover or defer as regulatory assets (for subsequent recovery through rates) certain site investigation and remediation costs. In February 2011, the NYSPSC initiated a proceeding to examine the existing mechanisms pursuant to which utilities recover such costs and possible alternatives.

Environmental remediation costs incurred and insurance recoveries received related to Superfund Sites at December 31, 2010 and 2009, were as follows:


	*Con Edison*				*CECONY*
*(Millions of Dollars)*	2010		2009		2010		2009
Remediation costs incurred	$	39	$	77	$	36	$	75
Insurance recoveries received*		1		4		1		4

*	Reduced amount deferred for recovery from customers

In 2010, CECONY estimated that for its manufactured gas plant sites, its aggregate undiscounted potential liability for the investigation and remediation of coal tar and/or other manufactured gas plant-related environmental contaminants could range up to $1.9 billion. In 2010, O&R estimated that for its manufactured gas plant sites, each of which has been investigated, the aggregate undiscounted potential liability for the remediation of such contaminants could range up to $200 million. These estimates were based on the assumption that there is contamination at all sites, including those that have not yet been fully investigated and additional assumptions about the extent of the contamination and the type and extent of the remediation that may be required. Actual experience may be materially different.

Asbestos Proceedings

Suits have been brought in New York State and federal courts against the Utilities and many other defendants, wherein a large number of plaintiffs sought large amounts of compensatory and punitive damages for deaths and injuries allegedly caused by exposure to asbestos at various premises of the Utilities. The suits that have been resolved, which are many, have been resolved without any payment by the Utilities, or for amounts that were not, in the aggregate, material to them. The amounts specified in all the remaining thousands of suits total billions of dollars; however, the Utilities believe that these amounts are greatly exaggerated, based on the disposition of previous claims. In 2010, CECONY estimated that its aggregate undiscounted potential liability for these suits and additional suits that may be brought over the next 15 years is $10 million. The estimate was based upon a combination of modeling, historical data analysis and risk factor assessment. Actual experience may be materially different. In addition, certain current and former employees have claimed or are claiming workers' compensation benefits based on alleged disability from exposure to asbestos. Under its current rate agreements, CECONY is permitted to defer as regulatory assets (for subsequent recovery through rates) costs incurred for its asbestos lawsuits and workers' compensation claims. The accrued liability for asbestos suits and workers' compensation proceedings (including those related to asbestos exposure) and the amounts deferred as regulatory assets for the Companies at December 31, 2010 and 2009 were as follows:


	Con Edison				CECONY
*(Millions of Dollars)*	2010		2009		2010		2009
Accrued liability – asbestos suits	$	10	$	10	$	10	$	9
Regulatory assets – asbestos suits	$	10	$	10	$	10	$	9
Accrued liability – workers' compensation	$	106	$	113	$	101	$	108
Regulatory assets – workers' compensation	$	31	$	37	$	31	$	37

Other Material Contingencies

12 Months Ended

Dec. 31, 2010

Other Material Contingencies

Note H — Other Material Contingencies

Manhattan Steam Main Rupture

In July 2007, a CECONY steam main located in midtown Manhattan ruptured. It has been reported that one person died and others were injured as a result of the incident. Several buildings in the area were damaged. Debris from the incident included dirt and mud containing asbestos. The response to the incident required the closing of several buildings and streets for various periods. Approximately 110 suits are pending against the company seeking generally unspecified compensatory and, in some cases, punitive damages, for personal injury, property damage and business interruption. The company has not accrued a liability for the suits. The company has notified its insurers of the incident and believes that the policies in force at the time of the incident will cover most of the company's costs, which the company is unable to estimate, but which could be substantial, to satisfy its liability to others in connection with the incident.

Investigations of Vendor Payments

In January 2009, CECONY commenced an internal investigation relating to the arrests of certain employees and retired employees (all of whom have since pleaded guilty) for accepting kickbacks from contractors that performed construction work for the company. The company has retained a law firm, which has retained an accounting firm, to assist in the company's investigation. The company is providing information to governmental authorities, which consider the company to be a victim of unlawful conduct, in connection with their investigation of the arrested employees and contractors. The company has terminated its employment of the arrested employees and its contracts with the contractors (one of which is suing the company for substantial damages claiming wrongful termination). In February 2009, the NYSPSC commenced a proceeding that, among other things, will examine the prudence of certain of the company's expenditures relating to the arrests and consider whether additional expenditures should also be examined (see "Other Regulatory Matters" in Note B).

CECONY is also investigating the September 2010 arrest of a retired employee (for participating in a bribery scheme in which the employee received payments from a bidder that was selected to supply materials to the company) and the January 2011 arrest of an employee (for accepting kickbacks from an engineering firm that performed work for the company). CECONY has provided information to governmental authorities in connection with their ongoing investigations of these matters.

The company, based upon its evaluation of its internal controls for 2010 and previous years, believes that the controls were effective to provide reasonable assurance that its financial statements have been fairly presented, in all material respects, in conformity with generally accepted accounting principles. Because the company's investigations are ongoing, the company is unable to predict the impact of any of the employees' unlawful conduct on the company's internal controls, business, results of operations or financial position.

Other Contingencies

See "Lease In/Lease Out Transactions" in Note J.

Guarantees

Con Edison and its subsidiaries enter into various agreements providing financial or performance assurance primarily to third parties on behalf of their subsidiaries. Maximum amounts guaranteed by Con Edison totaled $859 million and $929 million at December 31, 2010 and 2009, respectively.

A summary, by type and term, of Con Edison's total guarantees at December 31, 2010 is as follows:


Guarantee Type	0 – 3 years		4 – 10 years		> 10 years		Total
	*(Millions of Dollars)*
Commodity transactions	$	543	$	76	$	141	$	760
Affordable housing program		1		—		—		1
Intra-company guarantees		30		—		1		31
Other guarantees		47		20		—		67
TOTAL	$	621	$	96	$	142	$	859

Commodity Transactions – Con Edison guarantees payments on behalf of its competitive energy businesses in order to facilitate physical and financial transactions in gas, pipeline capacity, transportation, oil, electricity and related commodity services. To the extent that liabilities exist under the contracts subject to these guarantees, such liabilities are included in Con Edison's consolidated balance sheet.

Affordable Housing Program – Con Edison Development guarantees the repurchase and remarketing obligations of one of its subsidiaries for debt relating to moderate-income rental apartment properties eligible for tax credits under Section 42 of the Internal Revenue Code. In accordance with applicable accounting rules, neither the rental apartment properties nor the related indebtedness is included on Con Edison's consolidated balance sheet.

Intra-company Guarantees – Con Edison guarantees electricity sales made by Con Edison Energy and Con Edison Solutions to O&R and CECONY.

Other Guarantees – Con Edison, Con Edison Development and its subsidiaries also guarantee the following:

•

$20 million relates to guarantees issued by Con Edison covering RCN Corporation's lease payment to use CECONY's conduit system in accordance with a tariff approved by the NYSPSC and rent payment obligations under a lease for an office building. RCN Corporation is obligated to reimburse Con Edison for any payments made under these guarantees. In the case of the guarantee to CECONY, this obligation is partially secured by a letter of credit of $15 million, and, in the case of the other guarantee, this reimbursement is fully secured by a letter of credit;

•

$25 million for guarantees provided by Con Edison for indemnity agreements for surety bonds;

•

$16 million for collateral posted with wholesale counterparties;

•

$6 million for a guarantee provided by Con Edison for Con Edison Development payment of certain solar equipment purchases;

•

In connection with the sale in 2008 by Con Edison Development and its subsidiary of their ownership interests in their electricity generating plants, Con Edison also issued guarantees, which have no specified limitation on the amount guaranteed, covering certain representations and the obligations of Con Edison Development and its subsidiary to pay taxes relating to periods before the sale. See Note U; and

•

Con Edison, on behalf of Con Edison Solutions, as a retail electric provider, issued a guarantee with no specified limitation on the amount guaranteed, covering the payment of all obligations of a retail electric provider required by the Public Utility Commission of Texas. Con Edison's estimate of the maximum potential obligation is $10 million as of December 31, 2010.

Electricity Purchase Agreements

12 Months Ended

Dec. 31, 2010

Electricity Purchase Agreements

Note I — Electricity Purchase Agreements

CECONY has long-term electricity purchase agreements with non-utility generators and others for generating capacity. The company recovers its purchased power costs in accordance with provisions approved by the NYSPSC. See "Recoverable Energy Costs" in Note A.

At December 31, 2010, the significant terms of the electricity purchase agreements were as follows:


Facility	Equity Owner	Plant Output (MW)		Contracted Output (MW)			Contract Start Date	Contract Term (Years)
Indian Point	Entergy Nuclear Power Marketing, LLC		1,299		850	*	August 2001		11
Independence	Sithe/Independence Power Partners, LP		1,254		690		November 1994		20
Linden Cogeneration	Cogen Technologies Linden Venture, LP		1,035		632		May 1992		25
Astoria Energy	Astoria Energy, LLC		640		500		May 2006		10
Selkirk	Selkirk Cogen Partners, LP		383		265		September 1994		20
Brooklyn Navy Yard	Brooklyn Navy Yard Cogeneration Partners, LP		322		268		November 1996		40
Indeck Corinth	Indeck Energy Services of Corinth, Inc.		147		115		July 1995		20

*	Contracted output will decrease to 350 MW in 2011 and in 2012.

Assuming performance by the parties to the electricity purchase agreements, CECONY is obligated over the terms of the agreements to make capacity and other fixed payments.

For the years 2011 through 2015, the capacity and other fixed payments under the contracts are estimated to be as follows:


*(Millions of Dollars)*	2011		2012		2013		2014		2015
CECONY	$	480	$	481	$	479	$	420	$	216

For energy delivered under most of the electricity purchase agreements, CECONY is obligated to pay variable prices. The company's payments under the agreements for capacity, energy and other fixed payments in 2010, 2009 and 2008 were as follows:


	For the Years Ended December 31,
*(Millions of Dollars)*	2010		2009		2008
Indian Point	$	524	$	620	$	561
Linden Cogeneration		414		395		629
Selkirk		185		175		236
Astoria Energy		223		192		248
Brooklyn Navy Yard		123		124		154
Independence		119		122		101
Indeck Corinth		68		68		120
Wheelabrator		0		10		35
Total	$	1,656	$	1,706	$	2,084

Leases

12 Months Ended

Dec. 31, 2010

Leases

Note J — Leases

Con Edison's subsidiaries lease electric generating and gas distribution facilities, other electric transmission and distribution facilities, office buildings and equipment. In accordance with the accounting rules for leases, these leases are classified as either capital leases, operating leases or leveraged leases. Most of the operating leases provide the option to renew at the fair rental value for future periods. Generally, it is expected that leases will be renewed or replaced in the normal course of business.

Capital leases: For ratemaking purposes capital leases are treated as operating leases; therefore, in accordance with the accounting rules for regulated operations, the amortization of the leased asset is based on the rental payments recovered from customers. The following assets under capital leases are included in the Companies' consolidated balance sheets at December 31, 2010 and 2009:


	Con Edison				CECONY
(Millions of Dollars)	2010		2009		2010		2009
UTILITY PLANT
Transmission	$	2	$	3	$	2	$	3
Common		11		16		11		16
TOTAL	$	13	$	19	$	13	$	19

The accumulated amortization of the capital leases for Con Edison and CECONY was $59 million each at December 31, 2010, and $53 million each at December 31, 2009.

The future minimum lease commitments for the above assets are as follows:


*(Millions of Dollars)*	Con Edison		CECONY
2011	$	8	$	8
2012		6		6
2013		—		—
2014		—		—
2015		—		—
All years thereafter		2		2
Total		16		16
Less: amount representing interest		3		3
Present value of net minimum lease payment	$	13	$	13

CECONY subleases one of its capital leases. The minimum rental to be received in the future under the non-cancelable sublease is $7 million.

Operating leases: The future minimum lease commitments under the Companies' non-cancelable operating lease agreements are as follows:


*(Millions of Dollars)*	Con Edison		CECONY
2011	$	46	$	43
2012		47		45
2013		50		47
2014		43		41
2015		12		10
All years thereafter		94		83
Total	$	292	$	269

Lease In/Lease Out Transactions

In each of 1997 and 1999, Con Edison Development entered into a transaction in which it leased property and then immediately subleased it back to the lessor (termed "Lease In/Lease Out," or LILO transactions). The transactions respectively involve electric generating and gas distribution facilities in the Netherlands, with a total investment of $259 million. The transactions were financed with $93 million of equity and $166 million of non-recourse, long-term debt secured by the underlying assets. In accordance with the accounting rules for leases, Con Edison is accounting for the two LILO transactions as leveraged leases. Accordingly, the company's investment in these leases, net of non-recourse debt, is carried as a single amount in Con Edison's consolidated balance sheet and income is recognized pursuant to a method that incorporates a level rate of return for those years when net investment in the lease is positive, based upon the after-tax cash flows projected at the inception of the leveraged leases. The company's investment in these leveraged leases was $(41) million at December 31, 2010 and $(24) million at December 31, 2009 and is comprised of a $235 million gross investment less $276 million of deferred tax liabilities at December 31, 2010 and $235 million gross investment less $259 million of deferred tax liabilities at December 31, 2009.

On audit of Con Edison's tax return for 1997, the IRS disallowed the tax losses in connection with the 1997 LILO transaction. In December 2005, Con Edison paid a $0.3 million income tax deficiency asserted by the IRS for the tax year 1997 with respect to the 1997 LILO transaction. In April 2006, the company paid interest of $0.2 million associated with the deficiency and commenced an action in the United States Court of Federal Claims, entitled Consolidated Edison Company of New York, Inc. v. United States, to obtain a refund of this tax payment and interest. A trial was completed in November 2007. In October 2009, the court issued a decision in favor of the company concluding that the 1997 LILO transaction was, in substance, a true lease that possessed economic substance, the loans relating to the lease constituted bona fide indebtedness, and the deductions for the 1997 LILO transactions claimed by the company in its 1997 federal income tax return are allowable. The IRS is entitled to appeal the decision.

In connection with its audit of Con Edison's federal income tax returns for 1998 through 2007, the IRS disallowed $416 million of net tax deductions taken with respect to both of the LILO transactions for the tax years. Con Edison is pursuing administrative appeals of these audit level disallowances. In connection with its audit of Con Edison's federal income tax return for 2009 and 2008, the IRS has disallowed $41 million and $42 million, respectively, of net tax deductions taken with respect to both of the LILO transactions. When

these audit level disallowances become appealable, Con Edison intends to file an appeal of the disallowances.

Con Edison believes that its LILO transactions have been correctly reported, and has not recorded any reserve with respect to the disallowance of tax losses, or related interest, in connection with its LILO transactions. Con Edison's estimated tax savings, reflected in its financial statements, from the two LILO transactions through December 31, 2010, in the aggregate, was $222 million. If Con Edison were required to repay all or a portion of these amounts, it would also be required to pay interest of up to $77 million net of tax at December 31, 2010.

Pursuant to the accounting rules for leveraged lease transactions, the expected timing of income tax cash flows generated by Con Edison's LILO transactions are required to be reviewed at least annually. If the expected timing of the cash flows is revised, the rate of return and the allocation of income would be recalculated from the inception of the LILO transactions, and the company would be required to recalculate the accounting effect of the LILO transactions, which would result in a charge to earnings that could have a material adverse effect on the company's results of operations.

Goodwill

12 Months Ended

Dec. 31, 2010

Goodwill

Note K — Goodwill

In 2010 and 2009, Con Edison completed impairment tests for its goodwill of $406 million related to the O&R merger, and determined that it was not impaired. For the impairment test, $245 million and $161 million of the goodwill were allocated to CECONY and O&R, respectively. In 2010 and 2009, Con Edison completed impairment tests for the goodwill of $14 million and $10 million, respectively, related to two energy services companies acquired by Con Edison Solutions and determined that it was not impaired. Goodwill of $9 million related to an interest in a gas storage company acquired in 2010 by Con Edison Development will be considered in connection with Con Edison's 2011 goodwill impairment tests.

Financial Information by Business Segment

Discloses the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain or loss on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss. This element may be used as a single block of text to include the entire intangible asset disclosure including data and tables.

+ References+ Details

Income Tax

12 Months Ended

Dec. 31, 2010

Income Tax

Note L — Income Tax

The components of income tax are as follows:


	Con Edison									CECONY
*(Millions of Dollars)*	2010			2009			2008			2010			2009			2008
State
Current	$	23		$	(12	)	$	53		$	13		$	(1	)	$	7
Deferred – net		106			118			84			100			103			86
Federal
Current		(144	)		16			1			(139	)		42			(110	)
Deferred – net		569			324			392			527			266			420
Amortization of investment tax credits		(6	)		(6	)		(6	)		(6	)		(6	)		(6	)
TOTAL CHARGE TO INCOME TAX EXPENSE	$	548		$	440		$	524		$	495		$	404		$	397

The tax effect of temporary differences, which gave rise to deferred tax assets and liabilities, is as follows:


	Con Edison				CECONY
*(Millions of Dollars)*	2010		2009		2010		2009
Deferred tax liabilities:
Depreciation	$	3,019	$	2,569	$	2,851	$	2,426
Regulatory Asset – future income tax		1,760		1,489		1,666		1,404
Unrecognized pension and other postretirement costs		1,775		1,814		1,686		1,727
State income tax		760		645		668		563
Capitalized overheads		508		477		444		419
Other		744		646		519		434
Total deferred tax liabilities		8,566		7,640		7,834		6,973
Deferred tax assets:
Unrecognized pension and other postretirement costs		1,775		1,814		1,686		1,727
Regulatory liability – future income tax		135		172		119		155
State income tax		20		27		15		14
Other		95		84		1		1
Total deferred tax assets		2,025		2,097		1,821		1,897
NET LIABILITIES		6,541		5,543		6,013		5,076
INVESTMENT TAX CREDITS		61		66		58		63
DEFERRED INCOME TAXES AND INVESTMENT TAX CREDITS – Non current	$	6,602	$	5,609	$	6,071	$	5,139
DEFERRED INCOME TAXES – RECOVERABLE ENERGY COSTS – Current		5		12		—		—
TOTAL DEFERRED INCOME TAXES AND INVESTMENT TAX CREDITS	$	6,607	$	5,621	$	6,071	$	5,139

Reconciliation of the difference between income tax expense and the amount computed by applying the prevailing statutory income tax rate to income before income taxes is as follows:


	Con Edison									CECONY
*(% of Pre-tax income)*	2010			2009			2008			2010			2009			2008
STATUTORY TAX RATE
Federal		35	%		35	%		35	%		35	%		35	%		35	%
Changes in computed taxes resulting from:
State income tax		5			5			6			5			6			5
Depreciation related differences		—			1			1			—			1			1
Cost of removal		(4	)		(5	)		(5	)		(4	)		(6	)		(6	)
Other		(1	)		(3	)		(1	)		(1	)		(2	)		(2	)
Effective Tax Rate		35	%		33	%		36	%		35	%		34	%		33	%

For federal income tax purposes in 2010, the Companies are projecting a net operating loss of $105 million, primarily as a result of deductions for accelerated depreciation. The Companies intend to file a request for a refund using this net operating loss to offset prior years' federal taxable income. At December 31, 2010, the refund receivable of $37 million was classified as an other current asset and the estimated 2010 federal income tax payments of $240 million were classified as a prepayment on the Companies' consolidated balance sheet.

For New York State income tax purposes in 2010, the Companies have a net operating loss carryforward available from the 2009 tax return filing of $220 million, primarily as a result of repair allowance deductions discussed below. A deferred tax asset has been recognized for this New York State net operating loss that will not expire until year end 2029. A valuation allowance has not been provided against the deferred tax asset, as it is more likely than not that the deferred tax asset will be realized.

Uncertain Tax Positions

Under the accounting rules for income taxes, an enterprise is not allowed to recognize, in its financial statements, the benefit of a tax position unless that position is more likely than not to be sustained upon examination by taxing authorities, including resolution of any related appeals and litigation processes, based solely on the technical merits of the position.

The IRS has essentially completed its field audits of the Companies' federal income tax returns through 2009. The Companies' federal income tax returns for 1998 through 2009, which remain open to examination by the IRS, reflect certain tax positions with which the IRS does not or may not agree. Any adjustments to federal income tax returns will result in the Companies' filing the federal audit changes with New York State to incorporate in the applicable state income tax returns. In addition, the Companies' New York State tax returns for years beginning with 2006 remain open to examination by New York State.

In September 2010, Con Edison filed the Companies' federal income tax return for 2009 reflecting, among other things, the deduction of the costs of certain repairs to utility plant as an operating expense (the "repair allowance deductions"). Previously, the Companies capitalized such costs and reported their depreciation in their tax returns. Taking the repair allowance deductions accelerated the timing of the deduction of the cost of the repairs. The Companies had a net operating loss for federal income tax purposes in 2009 reflecting, among other things, the repair allowance deductions and the bonus depreciation provisions of the American Recovery and Reinvestment Act of 2009. In November 2010, Con Edison received a $297 million refund (including $281 million attributable to CECONY) of certain prior years' federal tax payments based upon the carry-back of the 2009 net operating loss. The Companies also estimate that they had a net operating loss for state income tax purposes for 2009, which is being carried forward and as to which, at December 31, 2010, Con Edison has included a $19 million other current asset in its consolidated balance sheet (including $17 million attributable to CECONY, which is included in accounts receivable from affiliated companies in CECONY's consolidated balance sheet). At December 31, 2010, with respect to the repair allowance deductions, Con Edison accrued a liability for uncertain tax positions of $51 million (including $49 million attributable to CECONY).

The methods the Companies used to determine which construction-related costs incurred from 2002 through 2008 could be deducted resulted in an uncertain tax position. In July 2008, the IRS entered into a closing agreement with Con Edison covering the extent to which such costs could be deducted in 2002 through 2004. In August 2010, the IRS entered into a closing agreement with Con Edison, covering the extent to which such costs could be deducted in 2005 through 2008. In 2010 the Company instructed the IRS to use the $160 million deposit that it paid to the IRS in June 2007 (of which, $146 million was attributable to CECONY) to pay the taxes due pursuant to the closing agreements. At December 31, 2010, the unrecognized tax benefits included $8 million (including $8 million attributable to CECONY) relating to the deduction of construction-related costs for New York State income tax purposes in 2005 through 2008.

At December 31, 2010, the Companies' estimated liabilities for uncertain tax positions ($93 million for Con Edison and $79 million for CECONY) were classified as current liabilities on their respective consolidated balance sheets. The Companies reasonably expect to resolve these uncertain tax positions with the IRS in the next 12 months.

The Companies recognize interest accrued related to the liability for uncertain tax positions in interest expense and would recognize penalties, if any, in operating expenses in the Companies' consolidated income statements. In 2010 and 2009, the Companies recognized an immaterial amount of interest expense for uncertain tax positions.

A reconciliation of the beginning and ending amounts of unrecognized tax benefits for Con Edison and CECONY follows:


	Con Edison									CECONY
*(Millions of Dollars)*	2010			2009			2008			2010			2009			2008
Balance at the beginning of the year	$	86		$	118		$	155		$	92		$	108		$	142
Additions based on tax positions related to the current year		5			—			—			4			—			—
Additions based on tax positions of prior years		67			3			—			49			1			—
Reductions for tax positions of prior years		(4	)		(21	)		(14	)		(4	)		(5	)		(13	)
Settlements		(61	)		(14	)		(23	)		(62	)		(12	)		(21	)
Balance at the end of the year	$	93		$	86		$	118		$	79		$	92		$	108

Stock-Based Compensation

12 Months Ended

Dec. 31, 2010

Stock-Based Compensation

Note M — Stock-Based Compensation

The Companies may compensate employees and directors with, among other things, stock options, restricted stock units and contributions to a discount stock purchase plan. The Stock Option Plan (the 1996 Plan) provided for awards of stock options to officers and employees for up to 10 million shares of Con Edison common stock. The Long Term Incentive Plan (LTIP), among other things, provides for awards of restricted stock units, stock options and, to Con Edison's non-officer directors, deferred stock units for up to 10 million shares of common stock (of which not more than four million shares may be restricted stock or stock units).

Shares of Con Edison common stock used to satisfy the Companies' obligations with respect to stock-based compensation may be new (authorized, but unissued) shares, treasury shares or shares purchased in the open market. The shares used during the periods ended December 31, 2010 and 2009 have been new shares.

Under the accounting rules for stock compensation, the Companies have recognized the cost of stock-based compensation as an expense using a fair value measurement method. The following table summarizes stock-based compensation expense recognized by the Companies in the period ended December 31, 2010, 2009 and 2008:


	Con Edison						CECONY
*(Millions of Dollars)*	2010		2009		2008		2010		2009		2008
Stock options	$	—	$	—	$	1	$	—	$	—	$	1
Restricted stock units		1		1		1		1		1		1
Performance-based restricted stock		27		20		8		25		19		7
Non-officer director deferred stock compensation		1		1		1		1		1		1
Total	$	29	$	22	$	11	$	27	$	21	$	10

Stock Options

The Companies last issued stock options in 2006. The stock options generally vested over a three-year period and have a term of ten years. Options were granted at an exercise price equal to the fair market value of a common share when the option was granted. The Companies generally recognized compensation expense (based on the fair value of stock option awards) over the continuous service period in which the options vested. Awards to employees eligible for retirement were expensed in the month awarded.

The outstanding options are "equity awards" because shares of Con Edison common stock are delivered upon exercise of the options. As equity awards, the fair value of the options is measured at the grant date. There were no options granted in 2010 and 2009.

A summary of changes in the status of stock options awarded as of December 31, 2010 is as follows:


	Con Edison				CECONY
	Shares			Weighted Average Exercise Price	Shares			Weighted Average Exercise Price
Outstanding at 12/31/09	5,313,300		$	42.955	4,368,800		$	42.988
Exercised	(2,372,550	)	$	42.175	(1,957,600	)	$	42.173
Forfeited	(5,500	)	$	40.544	(4,500	)	$	42.331
Outstanding at 12/31/10	2,935,250		$	43.588	2,406,700		$	43.652

The changes in the fair value of all outstanding options from their grant dates to December 31, 2010 and 2009 (aggregate intrinsic value) for Con Edison were $18 million and $13 million, respectively. The changes in the fair value of all outstanding options from their grant dates to December 31, 2010 and 2009 (aggregate intrinsic value) for CECONY was $14 million and $11 million, respectively. The aggregate intrinsic value of options exercised in 2010 and 2009 were $15 million and $1 million, respectively, and the cash received by Con Edison for payment of the exercise price was $100 million and $13 million, respectively. The weighted average remaining contractual life of options outstanding is four years as of December 31, 2010.

The following table summarizes stock options outstanding at December 31, 2010 for each plan year for the Companies:


			Con Edison						CECONY
Plan Year	Remaining Contractual Life		Options Outstanding		Weighted Average Exercise Price		Options Exercisable		Options Outstanding		Weighted Average Exercise Price		Options Exercisable
2006		5		1,167,200	$	45.418		1,167,200		1,000,200	$	45.463		1,000,200
2005		4		641,000		42.729		641,000		508,750		42.696		508,750
2004		3		621,850		43.810		621,850		484,050		43.806		484,050
2003		2		208,600		39.076		208,600		167,100		39.226		167,100
2002		1		199,300		42.510		199,300		166,800		42.510		166,800
2001		1		97,300		37.750		97,300		79,800		37.750		79,800
Total				2,935,250	$	43.588		2,935,250		2,406,700	$	43.652		2,406,700

Restricted Stock Units

Restricted stock unit awards under the LTIP have been made as follows: (i) to officers and certain employees, including awards that provide for adjustment of the number of units (performance-restricted stock units or Performance RSUs); and (ii) in connection with the directors' deferred compensation plan. Each restricted stock unit awarded represents the right to receive, upon vesting, one share of Con Edison common stock, or, except for units awarded under the directors' plan, the cash value of a share or a combination thereof.

In accordance with the accounting rules for stock compensation, for outstanding restricted stock awards other than Performance RSUs or awards under the directors' deferred compensation plan, the Companies have accrued a liability based on the market value of a common share on the grant date and are recognizing compensation expense over the vesting period. The weighted average vesting period for outstanding awards is three years and is based on the employee's continuous service to Con Edison. Prior to vesting, the awards are subject to forfeiture in whole or in part under certain circumstances. The awards are "liability awards" because each restricted stock unit represents the right to receive, upon vesting, one share of Con Edison common stock, the cash value of a share or a combination thereof. As such, prior to vesting, changes in the fair value of the units are reflected in net income. At December 31, 2010 and 2009, there were 136,359 and 135,048 units outstanding, respectively, for Con Edison, of which 97,959 and 96,598 units were outstanding, respectively, for CECONY. The weighted average fair value as of the grant date of the outstanding units other than Performance RSUs or awards under the directors' deferred compensation plan for December 31, 2010 and 2009 was $39.898 and $40.812 per unit, respectively, for Con Edison. The weighted average fair value as of the grant date of the outstanding units for December 31, 2010 and 2009 was $41.674 and $42.895 per unit, respectively, for CECONY. The total expense to be recognized by the Companies in future periods for unvested awards outstanding as of December 31, 2010 for Con Edison and CECONY was $1 million.

The number of units in each annual Performance RSU award is subject to adjustment as follows: (i) 50 percent of the units awarded will be multiplied by a factor that may range from 0 to 150 percent based on Con Edison's total shareholder return relative to a specified peer group during a specified performance period (the TSR portion); and (ii) 50 percent of the units awarded will be multiplied by a factor that may range from 0 to 200 percent based on determinations made in connection with CECONY's Executive Incentive Plan, or, for certain officers, the O&R Annual Team Incentive Plan or goals relating to Con Edison's competitive energy businesses (the EIP portion). Units generally vest when the performance period ends.

For the TSR portion of Performance RSU, the Companies use a Monte Carlo simulation model to estimate the fair value of the awards. The fair value is recomputed each reporting period as of the earlier of the reporting date and the vesting date. For the EIP portion of Performance RSU, the fair value of the awards is determined using the market price as of the earlier of the reporting date or the vesting date multiplied by the average EIP determination over the vesting period. Performance RSU awards are "liability awards" because each Performance RSU represents the right to receive, upon vesting, one share of Con Edison common stock, the cash value of a share or a combination thereof. As such, changes in the fair value of the Performance RSUs are reflected in net income. The following table illustrates the assumptions used to calculate the fair value of the awards:


	2010
Risk-free interest rate		0.30% -5.62 %
Expected term		3 years
Expected volatility		21.85%

The risk-free rate is based on the U.S. Treasury zero-coupon yield curve on the date of grant. The expected term of the Performance RSUs is three years, which equals the vesting period. The Companies do not expect significant forfeitures to occur. The expected volatility is calculated using daily closing stock prices over a period of three years, which approximates the expected term of the awards.

A summary of changes in the status of the Performance RSUs TSR portion during the period ended December 31, 2010 is as follows:


	Con Edison					CECONY
	Units			Weighted Average Fair Value*		Units			Weighted Average Fair Value*
Non-vested at 12/31/09		426,686		$	54.316		357,063		$	54.436
Granted		243,750			41.340		197,074			41.340
Vested		(168,511	)		73.035		(139,163	)		72.873
Forfeited		(7,737	)		—		(7,113	)		—
Non-vested at 12/31/10		494,188		$	59.096		407,861		$	59.306

*	Fair value is determined using the Monte Carlo simulation described above. Weighted average fair value at December 31, 2010 and weighted average fair value of Performance RSUs granted do not reflect any accrual or payment of dividends prior to vesting.

A summary of changes in the status of the Performance RSUs' EIP portion during the period ended December 31, 2010 is as follows:


	Con Edison					CECONY
	Units			Weighted Average Fair Value		Units			Weighted Average Fair Value
Non-vested at 12/31/09		426,686		$	45.430		357,063		$	45.430
Granted		243,750			44.540		197,074			44.540
Vested		(168,511	)		55.359		(139,163	)		55.104
Forfeited		(7,737	)		—		(7,113	)		—
Non-vested at 12/31/10		494,188		$	55.226		407,861		$	55.127

Fair value is determined using the market price of one share of Con Edison common stock on the respective dates indicated or the grant or vesting date multiplied by the average Executive Incentive Plan determination over the vesting period. The market price has not been discounted to reflect that dividends do not accrue and are not payable on Performance RSUs until vesting.

The total expense to be recognized by Con Edison in future periods for unvested Performance RSUs outstanding as of December 31, 2010 is $29 million, including $24 million for CECONY.

Con Edison has a deferred stock compensation plan for non-officer directors. Awards under the deferred compensation stock plan are covered by the LTIP. Each director received 1,500 stock units in 2010 for service as a director. These stock units are deferred until the director's termination of service. Directors may elect to receive dividend equivalents earned on stock units in cash payments. Restricted stock units issued under the directors' deferred compensation plan are considered "equity awards," because they may only be settled in shares. Directors immediately vest in units issued to them. The fair value of the units is determined using the closing price of Con Edison's common stock on the business day immediately preceding the date of issue. In the period ended December 31, 2010, approximately 24,982 units were issued.

Stock Purchase Plan

The Stock Purchase Plan provides for the Companies to contribute up to $1 for each $9 invested by their directors, officers or employees to purchase Con Edison common stock under the plan. Eligible participants may invest up to $25,000 during any calendar year (subject to an additional limitation for officers and employees of not more than 20% of their pay). Dividends paid on shares held under the plan are reinvested in additional shares unless otherwise directed by the participant.

Participants in the plan immediately vest in shares purchased by them under the plan. The fair value of the shares of Con Edison common stock purchased under the plan was calculated using the average of the high and low composite sale prices at which shares were traded at the New York Stock Exchange on the trading day immediately preceding such purchase dates. During 2010, 2009 and 2008, 738,951, 868,622 and 745,869 shares were purchased under the Stock Purchase Plan at a weighted average price of $45.52, $38.15 and $42.47 per share, respectively.

Financial Information by Business Segment

12 Months Ended

Dec. 31, 2010

Note N — Financial Information by Business Segment

The business segments of each of the Companies were determined based on management's reporting and decision-making requirements in accordance with the accounting rules for segment reporting.

Con Edison's principal business segments are CECONY's regulated electric, gas and steam utility activities, O&R's regulated electric and gas utility activities and Con Edison's competitive energy businesses. See Note U. CECONY's principal business segments are its regulated electric, gas and steam utility activities.

All revenues of these business segments, excluding revenues earned by Con Edison Development on certain energy infrastructure projects, which are deemed to be immaterial, are from customers located in the United States of America. Also, all assets of the business segments, excluding certain investments in energy infrastructure projects by Con Edison Development ($235 million at December 31, 2010), are located in the United States of America. The accounting policies of the segments are the same as those described in Note A.

Common services shared by the business segments are assigned directly or allocated based on various cost factors, depending on the nature of the service provided.

The financial data for the business segments are as follows:


As of and for the Year Ended December 31, 2010 (Millions of Dollars)	Operating revenues			Inter-segment revenues			Depreciation and amortization		Operating income			Interest charges			Income tax expense		Total assets*		Construction expenditures
CECONY
Electric	$	8,376		$	12		$	623	$	1,549		$	424		$	371	$	24,942	$	1,421
Gas		1,541			5			102		310			82			91		5,038		334
Steam		656			74			62		63			43			29		2,455		111
Consolidation adjustments		—			(91	)		—		—			—			—		—		—
Total CECONY	$	10,573		$	—		$	787	$	1,922		$	549		$	491	$	32,435	$	1,866
O&R
Electric	$	692		$	—		$	32	$	74		$	22		$	18	$	1,621	$	99
Gas		218			—			12		34			12			8		684		36
Other*		—			—			—		—			1			—		32		—
Total O&R	$	910		$	—		$	44	$	108		$	35		$	26	$	2,337	$	135
Competitive energy businesses	$	1,883		$	9		$	9	$	97		$	(3	)	$	37	$	807	$	28
Other**		(41	)		(9	)		—		(7	)		28			—		567		—
Total Con Edison	$	13,325		$	—		$	840	$	2,120		$	609		$	554	$	36,146	$	2,029

As of and for the Year Ended December 31, 2009 (Millions of Dollars)	Operating revenues			Inter-segment revenues			Depreciation and amortization		Operating income			Interest charges			Income tax expense		Total assets*		Construction expenditures
CECONY
Electric	$	7,674		$	12		$	587	$	1,368		$	425		$	300	$	23,309	$	1,596
Gas		1,701			5			98		309			82			90		4,796		339
Steam		661			73			59		39			46			12		2,356		122
Consolidation adjustments		—			(90	)		—		—			—			—		—		—
Total CECONY	$	10,036		$	—		$	744	$	1,716		$	553		$	402	$	30,461	$	2,057
O&R
Electric	$	648		$	—		$	30	$	64		$	18		$	15	$	1,525	$	85
Gas		242			—			12		28			9			7		627		42
Other*		—			—			—		—			2			—		35		—
Total O&R	$	890		$	—		$	42	$	92		$	29		$	22	$	2,187	$	127
Competitive energy businesses	$	2,147		$	—		$	5	$	93		$	—		$	31	$	751	$	10
Other**		(41	)		—			—		(3	)		29			—		445		—
Total Con Edison	$	13,032		$	—		$	791	$	1,899		$	611		$	455	$	33,844	$	2,194

As of and for the Year Ended December 31, 2008 (Millions of Dollars)	Operating revenues			Inter-segment revenues			Depreciation and amortization		Operating income			Interest charges			Income tax expense		Total assets*		Construction expenditures
CECONY
Electric	$	7,878		$	12		$	521	$	1,333		$	375		$	295	$	23,181	$	1,743
Gas		1,839			5			90		303			75			91		4,882		338
Steam		707			74			61		31			42			10		2,352		121
Consolidation adjustments		—			(91	)		—		—			—			—		—		—
Total CECONY	$	10,424		$	—		$	672	$	1,667		$	492		$	396	$	30,415	$	2,202
O&R
Electric	$	733		$	—		$	29	$	68		$	18		$	18	$	1,514	$	88
Gas		258			—			11		25			9			6		590		32
Other*		—			—			—		—			1			—		58		—
Total O&R	$	991		$	—		$	40	$	93		$	28		$	24	$	2,162	$	120
Competitive energy businesses	$	2,195		$	(11	)	$	5	$	162		$	(2	)	$	92	$	668	$	4
Other**		(27	)		11			—		(2	)		26			—		253		—
Total Con Edison	$	13,583		$	—		$	717	$	1,920		$	544		$	512	$	33,498	$	2,326

*	Includes amounts related to the RECO securitization.

**	Parent company expenses, primarily interest, and consolidation adjustments. Other does not represent a business segment.

Derivative Instruments and Hedging Activities

12 Months Ended

Dec. 31, 2010

Derivative Instruments and Hedging Activities

Note O — Derivative Instruments and Hedging Activities

Under the accounting rules for derivatives and hedging, derivatives are recognized on the balance sheet at fair value, unless an exception is available under the accounting rules. Certain qualifying derivative contracts have been designated as normal purchases or normal sales contracts. These contracts are not reported at fair value under the accounting rules.

Energy Price Hedging

Con Edison's subsidiaries hedge market price fluctuations associated with physical purchases and sales of electricity, natural gas, and steam by using derivative instruments including futures, forwards, basis swaps, options, transmission congestion contracts and financial transmission rights contracts. The fair values of these hedges at December 31, 2010 and 2009 were as follows:


	Con Edison						CECONY
*(Millions of Dollars)*	2010			2009			2010			2009
Fair value of net derivative assets/(liabilities) – gross	$	(261	)	$	(266	)	$	(156	)	$	(137	)
Impact of netting of cash collateral		176			162			104			87
Fair value of net derivative assets/(liabilities) – net	$	(85	)	$	(104	)	$	(52	)	$	(50	)

Credit Exposure

The Companies are exposed to credit risk related to transactions entered into primarily for the various energy supply and hedging activities by the Utilities and the competitive energy businesses. The Companies use credit policies to manage this risk, including an established credit approval process, monitoring of counterparty limits, netting provisions within agreements, collateral or prepayment arrangements, credit insurance and credit default swaps.

At December 31, 2010, Con Edison and CECONY had $157 million and $36 million of credit exposure in connection with energy supply and hedging activities, net of collateral, respectively. Con Edison's net credit exposure consisted of $76 million with investment-grade counterparties, $55 million with commodity exchange brokers and $26 million with independent system operators. CECONY's net credit exposure was primarily with commodity exchange brokers.

Economic Hedges

The Companies enter into certain derivative instruments that do not qualify or are not designated as hedges under the accounting rules for derivatives and hedging. However, management believes these instruments represent economic hedges that mitigate exposure to fluctuations in commodity prices.

The fair values of the Companies' commodity derivatives at December 31, 2010 were:


Fair Value of Commodity Derivatives(a)
*(Millions of Dollars)*	Balance Sheet Location	Con Edison			CECONY
Derivatives Asset
Current	Other current assets	$	184		$	29
Long term	Other deferred charges and non-current assets		51			19
Total derivatives asset		$	235		$	48
Impact of netting			(129	)		—
Net derivatives asset		$	106		$	48
Derivatives Liability
Current	Fair value of derivative liabilities	$	385		$	—
Current	Other current liabilities		—			148
Long term	Fair value of derivative liabilities		111			56
Total derivatives liability		$	496		$	204
Impact of netting			(305	)		(104	)
Net derivatives liability		$	191		$	100

(a)	Qualifying derivative contracts, which have been designated as normal purchases or normal sales contracts, are not reported at fair value under the accounting rules for derivatives and hedging and, therefore, are excluded from the table.

The fair value of the Companies' commodity derivatives at December 31, 2009 were:


Fair Value of Commodity Derivatives(a)
*(Millions of Dollars)*	Balance Sheet Location	Con Edison			CECONY
Derivatives Asset
Current	Other current assets	$	213		$	40
Long term	Other deferred charges and non-current assets		148			19
Total derivatives asset		$	361		$	59
Impact of netting			(231	)		(20	)
Net derivatives asset		$	130		$	39
Derivatives Liability
Current	Fair value of derivative liabilities	$	401		$	—
Current	Other current liabilities		—			110
Long term	Fair value of derivative liabilities		226			86
Total derivatives liability		$	627		$	196
Impact of netting			(393	)		(107	)
Net derivatives liability		$	234		$	89

(a)	Qualifying derivative contracts, which have been designated as normal purchases or normal sales contracts, are not reported at fair value under the accounting rules for derivatives and hedging and, therefore, are excluded from the table.

The Utilities generally recover all of their prudently incurred fuel, purchased power and gas cost, including hedging gains and losses, in accordance with rate provisions approved by the applicable state utility commissions. See "Recoverable Energy Costs" in Note A. In accordance with the accounting rules for regulated operations, the Utilities record a regulatory asset or liability to defer recognition of unrealized gains and losses on their electric and gas derivatives. As gains and losses are realized in future periods, they will be recognized as purchased power, gas and fuel costs in the Companies' consolidated income statements. Con Edison's competitive energy businesses record realized and unrealized gains and losses on their derivative contracts in earnings in the reporting period in which they occur.

The following table presents the changes in the fair values of commodity derivatives that have been deferred or recognized in earnings for the year ended December 31, 2010:


Realized and Unrealized Gains/(Losses) on Commodity Derivatives(a) Deferred or Recognized in Income for the Year Ended December 31, 2010
*(Millions of Dollars)*	Balance Sheet Location		Con Edison			CECONY
Pre-tax gains/(losses) deferred in accordance with accounting rules for regulated operations:
Current		Deferred derivative gains	$	(5	)	$	(5	)
Long-term		Regulatory liabilities		1			1
Total deferred gains			$	(4	)	$	(4	)
Current		Deferred derivative losses	$	(49	)	$	(47	)
Current		Recoverable energy costs		(285	)		(240	)
Long term		Regulatory assets		32			27
Total deferred losses			$	(302	)	$	(260	)
Net deferred losses			$	(306	)	$	(264	)
	Income Statement Location
Pre-tax gain/(loss) recognized in income
		Purchased power expense	$	(173	)(b)	$	—
		Gas purchased for resale		(9	)		—
		Non-utility revenue		26	(b)		—
Total pre-tax gain/(loss) recognized in income			$	(156	)	$	—

(a)	Qualifying derivative contracts, which have been designated as normal purchases or normal sales contracts, are not reported at fair value under the accounting rules for derivatives and hedging and, therefore, are excluded from the table.

(b)	For the year ended December 31, 2010, Con Edison recorded in non-utility operating revenues and purchased power expense an unrealized pre-tax gain/(loss) of $(36) million and $56 million, respectively.

The following table presents the changes in the fair values of commodity derivatives that have been deferred or recognized in earnings for the year ended December 31, 2009:


Realized and Unrealized Gains/(Losses) on Commodity Derivatives(a) Deferred or Recognized in Income for the Year Ended December 31, 2009
*(Millions of Dollars)*	Balance Sheet Location		Con Edison			CECONY
Pre-tax gains/(losses) deferred in accordance with accounting rules for regulated operations:
Current		Deferred derivative gains	$	(15	)	$	(15	)
Total deferred gains			$	(15	)	$	(15	)
Current		Deferred derivative losses	$	147		$	143
Current		Recoverable energy costs		(558	)		(471	)
Long term		Regulatory assets		(15	)		(21	)
Total deferred losses			$	(426	)	$	(349	)
Net deferred losses			$	(441	)	$	(364	)
	Income Statement Location
Pre-tax gain/(loss) recognized in income
		Purchased power expense	$	(562	)(b)	$	—
		Gas purchased for resale		9			—
		Non-utility revenue		30	(b)		—
Total pre-tax gain/(loss) recognized in income			$	(523	)	$	—

(a)	Qualifying derivative contracts, which have been designated as normal purchases or normal sales contracts, are not reported at fair value under the accounting rules for derivatives and hedging and, therefore, are excluded from the table.

(b)	For the year ended December 31, 2009, Con Edison recorded in non-utility operating revenues and purchased power expense an unrealized pre-tax gain/(loss) of $196 million and $(165) million, respectively.

As of December 31, 2010, Con Edison had 1,559 contracts, including 697 CECONY contracts, which were considered to be derivatives under the accounting rules for derivatives and hedging (excluding qualifying derivative contracts, which have been designated as normal purchases or normal sales contracts). The following table presents the number of contracts by commodity type:


	Electric Derivatives						Gas Derivatives
	Number of Energy Contracts(a)		MWhs(b)		Number of Capacity Contracts(a)		MWs(b)		Number of Contracts(a)		Dths(b)		Total Number Of Contracts(a)
Con Edison		799		20,569,025		48		10,524		712		136,269,210		1,559
CECONY		161		4,556,675		—		—		536		126,050,000		697

(a)	Qualifying derivative contracts, which have been designated as normal purchases or normal sales contracts, are not reported at fair value under the accounting rules for derivatives and hedging and, therefore, are excluded from the table.

(b)	Volumes are reported net of long and short positions.

The Companies also enter into electric congestion and gas basis swap contracts to hedge the congestion and transportation charges which are associated with electric and gas contracts and hedged volumes.

The collateral requirements associated with, and settlement of, derivative transactions are included in net cash flows from operating activities in the Companies' consolidated statement of cash flows. Most derivative instrument contracts contain provisions that may require the Companies to provide collateral on derivative instruments in net liability positions. The amount of collateral to be provided will depend on the fair value of the derivative instruments and the Companies' credit ratings.

The aggregate fair value of all derivative instruments with credit-risk-related contingent features that are in a net liability position and collateral posted at December 31, 2010, and the additional collateral that would have been required to be posted had the lowest applicable credit rating been reduced one level and to below investment grade were:


*(Millions of Dollars)*	Con Edison(a)			CECONY(a)
Aggregate fair value – net liabilities	$	249		$	124
Collateral posted	$	105		$	78	(b)
Additional collateral(c) (downgrade one level from current ratings(d))	$	58		$	9
Additional collateral(c) (downgrade to below investment grade from current ratings(d))	$	180	(e)	$	55	(e)

(a)

Non-derivative transactions for the purchase and sale of electricity and gas and qualifying derivative instruments, which have been designated as normal purchases or normal sales, are excluded from the table. These transactions primarily include purchases of electricity from independent system operators. In the event the Utilities and Con Edison's competitive energy businesses were no longer extended unsecured credit for such purchases, the Companies would be required to post collateral, which at December 31, 2010, would have amounted to an estimated $101 million for Con Edison, including $0 million for CECONY. For certain other such non-derivative transactions, the Companies could be required to post collateral under certain circumstances, including in the event counterparties had reasonable grounds for insecurity.

(b)	Across the Utilities' energy derivative positions, credit limits for the same counterparties are generally integrated. At December 31, 2010, the Utilities posted combined collateral of $102 million, including an estimated $24 million attributable to O&R.

(c)

The Companies measure the collateral requirements by taking into consideration the fair value amounts of derivative instruments that contain credit-risk-related contingent features that are in a net liabilities position plus amounts owed to counterparties for settled transactions and amounts required by counterparties for minimum financial security. The fair value amounts represent unrealized losses, net of any unrealized gains where the Companies have a legally enforceable right of setoff.

(d)

The current ratings are Moody's, S&P and Fitch long-term credit rating of, as applicable, Con Edison (Baa1/BBB+/BBB+), CECONY (A3/A-/A-) or O&R (Baa1/A-/A-). Credit ratings assigned by rating agencies are expressions of opinions that are subject to revision or withdrawal at any time by the assigning rating agency.

(e)	Derivative instruments that are net assets have been excluded from the table. At December 31, 2010, if Con Edison had been downgraded to below investment grade, it would have been required to post additional collateral for such derivative instruments of not more than $24 million.

Interest Rate Swaps

O&R has an interest rate swap pursuant to which it pays a fixed-rate of 6.09 percent and receives a LIBOR-based variable rate. The fair value of this interest rate swap at December 31, 2010 was an unrealized loss of $10 million, which has been included in Con Edison's consolidated balance sheet as a noncurrent liability/fair value of derivative liabilities and a regulatory asset. The increase in the fair value of the swap for the year ended December 31, 2010 was $1 million. In the event O&R's credit rating was downgraded to BBB- or lower by S&P or Baa3 or lower by Moody's, the swap counterparty could elect to terminate the agreement and, if it did so, the parties would then be required to settle the transaction.

Fair Value Measurements

12 Months Ended

Dec. 31, 2010

Fair Value Measurements

Note P — Fair Value Measurements

The accounting rules for fair value measurements and disclosures define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in a principal or most advantageous market. Fair value is a market-based measurement that is determined based on inputs, which refer broadly to assumptions that market participants use in pricing assets or liabilities. These inputs can be readily observable, market corroborated, or generally unobservable firm inputs. The Companies often make certain assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, and the risks inherent in the inputs to valuation techniques. The Companies use valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs.

The accounting rules for fair value measurements and disclosures require consideration of the impact of nonperformance risk (including credit risk) from a market participant perspective in the measurement of the fair value of assets and liabilities. At December 31, 2010, the Companies determined that nonperformance risk would have no material impact on their financial position or results of operations. To assess nonperformance risk, the Companies considered information such as collateral requirements, master netting arrangements, letters of credit and parent company guarantees, and applied a market-based method by using the counterparty (for an asset) or the Companies' (for a liability) credit default swaps rates.

The accounting rules for fair value measurements and disclosures established a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value in three broad levels. The rules require that assets and liabilities be classified in their entirety based on the level of input that is significant to the fair value measurement. Assessing the significance of a particular input may require judgment considering factors specific to the asset or liability, and may affect the valuation of the asset or liability and their placement within the fair value hierarchy. The Companies classify fair value balances based on the fair value hierarchy defined by the accounting rules for fair value measurements and disclosures as follows:

•

Level 1 – Consists of assets or liabilities whose value is based on unadjusted quoted prices in active markets at the measurement date. An active market is one in which transactions for assets or liabilities occur with sufficient frequency and volume to provide pricing information on an ongoing basis. This category includes contracts traded on active exchange markets valued using unadjusted prices quoted directly from the exchange.

•

Level 2 – Consists of assets or liabilities valued using industry standard models and based on prices, other than quoted prices within Level 1, that are either directly or indirectly observable as of the measurement date. The industry standard models consider observable assumptions including time value, volatility factors, and current market and contractual prices for the underlying commodities, in addition to other economic measures. This category includes contracts traded on active exchanges or in over-the-counter markets priced with industry standard models.

•

Level 3 – Consists of assets or liabilities whose fair value is estimated based on internally developed models or methodologies using inputs that are generally less readily observable and supported by little, if any, market activity at the measurement date. Unobservable inputs are developed based on the best available information and subject to cost benefit constraints. This category includes contracts priced using models that are internally developed and contracts placed in illiquid markets. It also includes contracts that expire after the period of time for which quoted prices are available and internal models are used to determine a significant portion of the value.

Effective January 1, 2010, the Companies adopted Accounting Standards Update (ASU) No. 2010-06, "Fair Value Measurements and Disclosures (Topic 820): Improving Disclosures about Fair Value Measurements," This update requires the Companies to disclose significant transfers in and out of Level 1 and Level 2 fair value measurements and describe the reasons for the transfers. The guidance also clarifies level of disaggregation and disclosure requirements about inputs and valuation techniques used to measure fair value for both recurring and nonrecurring fair value measurements and the meaning of a class of assets and liabilities. In addition, the update requires the Companies to present information about purchases, sales, issuances, and settlements on a gross basis in the reconciliation for fair value measurements using significant unobservable inputs (Level 3).

The valuation technique used by the Companies with regard to commodity derivatives and other assets that fall into either Level 2 or Level 3 is the market approach, which uses prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities. The valuation technique used by the Companies with regard to the interest rate contract that falls into Level 3 is the income approach which uses valuation techniques to convert future income stream amounts to a single amount in present value terms.

Assets and liabilities measured at fair value on a recurring basis as of December 31, 2010 are summarized below.


	Level 1				Level 2						Level 3						Netting Adjustments (4)						Total
(Millions of Dollars)	Con Edison		CECONY		Con Edison			CECONY			Con Edison			CECONY			Con Edison			CECONY			Con Edison			CECONY
Derivative assets:
Commodity(1)	$	2	$	1	$	72		$	21		$	144		$	13		$	(112	)	$	13		$	106		$	48
Other assets(3)		65		64		—			—			101			92			—			—			166			156
Total	$	67	$	65	$	72		$	21		$	245		$	105		$	(112	)	$	13		$	272		$	204
Derivative liabilities:
Commodity	$	4	$	2	$	270		$	177		$	205		$	12		$	(288	)	$	(91	)	$	191		$	100
Transfer in(5)(6)(7)		—		—		(36	)		(36	)		(9	)		(9	)		—			—			(45	)		(45	)
Transfer out(5)(6)(7)		—		—		9			9			36			36			—			—			45			45
Commodity(1)	$	4	$	2	$	243		$	150			232			39		$	(288	)	$	(91	)	$	191		$	100
Interest rate contract(2)		—		—		—			—			10			—			—			—			10			—
Total	$	4	$	2	$	243		$	150		$	242		$	39		$	(288	)	$	(91	)	$	201		$	100

(1)

A significant portion of the commodity derivative contracts categorized in Level 3 is valued using either an industry acceptable model or an internally developed model with observable inputs. The models also include some less readily observable inputs resulting in the classification of the entire contract as Level 3. See Note O.

(2)	See Note O.

(3)	Other assets are comprised of assets such as life insurance contracts within the Deferred Income Plan and Supplemental Retirement Income Plans, held in rabbi trusts.

(4)	Amounts represent the impact of legally-enforceable master netting agreements that allow the Companies to net gain and loss positions and cash collateral held or placed with the same counterparties.

(5)	The Companies' policy is to recognize transfers into and transfers out of the levels at the end of the reporting period.

(6)	Transferred from Level 2 to Level 3 because of reassessment of the levels in the fair value hierarchy within which certain inputs fall.

(7)	Transferred from Level 3 to Level 2 because of availability of observable market data due to decrease in the terms of certain contracts from beyond one year as of December 31, 2009 to less than one year as of December 31, 2010.

Assets and liabilities measured at fair value on a recurring basis as of December 31, 2009 are summarized below.


	Level 1				Level 2				Level 3				Netting Adjustments(4)						Total
*(Millions of Dollars)*	Con Edison		CECONY		Con Edison		CECONY		Con Edison		CECONY		Con Edison			CECONY			Con Edison		CECONY
Derivative assets:
Commodity (1)	$	3	$	3	$	92	$	21	$	201	$	17	$	(166	)	$	(2	)	$	130	$	39
Other assets (3)		36		36		—		—		92		83		—			—			128		119
Total	$	39	$	39	$	92	$	21	$	293	$	100	$	(166	)	$	(2	)	$	258	$	158
Derivative liabilities:
Commodity (1)	$	6	$	1	$	296	$	155	$	260	$	22	$	(328	)	$	(89	)	$	234	$	89
Interest rate contract (2)		—		—		—		—		11		—		—			—			11		—
Total	$	6	$	1	$	296	$	155	$	271	$	22	$	(328	)	$	(89	)	$	245	$	89

(1)

(2)	See Note O.

(3)	Other assets are comprised of assets such as life insurance contracts within the Deferred Income Plan and Supplemental Retirement Income Plans, held in rabbi trusts.

(4)	Amounts represent the impact of legally-enforceable master netting agreements that allow the Companies to net gain and loss positions and cash collateral held or placed with the same counterparties.

The table listed below provides a reconciliation of the beginning and ending net balances for assets and liabilities measured at fair value for the years ended December 31, 2010 and 2009 and classified as Level 3 in the fair value hierarchy:


	For the Year Ended December 31, 2010
*(Millions of Dollars)*	Beginning Balance as of January 1, 2010			Total Gains/(Losses) – Realized and Unrealized						Purchases, Issuances, Sales and Settlements		Transfer In/Out of Level 3		Ending Balance as of December 31, 2010
*(Millions of Dollars)*	Beginning Balance as of January 1, 2010			Included in Earnings			Included in Regulatory Assets and Liabilities			Purchases, Issuances, Sales and Settlements		Transfer In/Out of Level 3		Ending Balance as of December 31, 2010
Con Edison
Derivatives:
Commodity	$	(59	)	$	(73	)	$	(37	)	$	54	$	27	$	(88	)
Interest rate contract		(11	)		(3	)		1			3		—		(10	)
Other assets(1)		92			3			6			—		—		101
Total	$	22		$	(73	)	$	(30	)	$	57	$	27	$	3
CECONY
Derivatives:
Commodity	$	(5	)	$	(14	)	$	(44	)	$	10	$	27	$	(26	)
Other assets(1)		83			3			6			—		—		92
Total	$	78		$	(11	)	$	(38	)	$	10	$	27	$	66

(1)	Amounts included in earnings are reported in investment and other income on the consolidated income statement.


	For the Year Ended December 31, 2009
*(Millions of Dollars)*				Total Gains/(Losses) – Realized and Unrealized								Transfer In/Out of Level 3		Ending Balance as of December 31, 2009
*(Millions of Dollars)*	Beginning Balance as of January 1, 2009			Included in Earnings			Included in Regulatory Assets and Liabilities			Purchases, Issuances, Sales and Settlements		Transfer In/Out of Level 3		Ending Balance as of December 31, 2009
Con Edison
Derivatives:
Commodity	$	(50	)	$	(249	)	$	(23	)	$	263	$	—	$	(59	)
Interest rate contract		(15	)		(3	)		4			3		—		(11	)
Other assets(1)		73			7			12			—		—		92
Total	$	8		$	(245	)	$	(7	)	$	266	$	—	$	22
CECONY
Derivatives:
Commodity	$	1		$	(23	)	$	(20	)	$	37	$	—	$	(5	)
Other assets(1)		65			7			11			—		—		83
Total	$	66		$	(16	)	$	(9	)	$	37	$	—	$	78

(1)	Amounts included in earnings are reported in investment and other income on the consolidated income statement.

For the Utilities, realized gains and losses on Level 3 commodity derivative assets and liabilities are reported as part of purchased power, gas and fuel costs. The Utilities generally recover these costs in accordance with rate provisions approved by the applicable state public utilities commissions. See Note A. Unrealized gains and losses for commodity derivatives are generally deferred on the consolidated balance sheet in accordance with the accounting rules for regulated operations.

For the competitive energy businesses, realized and unrealized gains and losses on Level 3 commodity derivative assets and liabilities are reported in non-utility revenues ($22 million gain and $17 million gain) and purchased power costs ($44 million loss and $184 million loss) on the consolidated income statement for the years ended December 31, 2010 and 2009, respectively. The change in fair value relating to Level 3 commodity derivative assets held at December 31, 2010 and 2009 is included in non-utility revenues ($37 million loss and $27 million loss), and purchased power costs ($24 million gain and $28 million gain) on the consolidated income statement for the years ended December 31, 2010 and 2009, respectively.

Variable Interest Entities

This element represents the disclosure related to the fair value measurement of assets and liabilities which includes [financial] instruments measured at fair value that are classified in stockholders' equity. Such assets and liabilities may be measured on a recurring or nonrecurring basis. The disclosures which may be required or desired include: (1) for assets and liabilities measured on a recurring basis, disclosure may include: (a) the fair value measurements at the reporting date; (b) the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets or liabilities (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3); (c) for fair value measurements using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (i) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (ii) purchases, sales, issuances, and settlements (net); (iii) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs); (d) the amount of the total gains or losses for the period in subparagraph (c) (i) above included in earnings (or changes in net assets) that are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held at the reporting date and a description of where those unrealized gains or losses are reported in the statement of income (or activities); (e) the valuation technique(s) used to measure fair value and a discussion of changes in valuation techniques, if any, during the period and (2) for assets and liabilities that are measured at fair value on a nonrecurring basis (for example, impaired assets) disclosure may include, in addition to (a) above: (a) the reasons for the fair value measurements recorded; (b) the same as (b) above; (c) for fair value measurements using significant unobservable inputs (Level 3), a description of the inputs and the information used to develop the inputs; and (d) the valuation technique(s) used to measure fair value and a discussion of changes, if any, in the valuation technique(s) used to measure similar assets and/or liabilities in prior periods.

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Variable Interest Entities

12 Months Ended

Dec. 31, 2010

Note Q – Variable Interest Entities

Effective January 1, 2010, the Companies adopted ASU No. 2009-17, "Consolidations (Topic 810): Improvements to Financial Reporting by Enterprises Involved with Variable Interest Entities." The Companies have not identified any interests they have in any variable interest entity (VIE) that would require the Companies to include the financial position and results of operations of the VIE in the Companies' consolidated financial statements.

The accounting rules for consolidation address the consolidation of a VIE by a business enterprise that is the primary beneficiary. A VIE is an entity that does not have a sufficient equity investment at risk to permit it to finance its activities without additional subordinated financial support, or whose equity investors lack the characteristics of a controlling financial interest. The primary beneficiary is the business enterprise that has the power to direct the activities of the VIE that most significantly impact the VIE's economic performance and either absorbs a significant amount of the VIE's losses or has the right to receive benefits that could be significant to the VIE.

Con Edison enters into arrangements including leases, partnerships and electricity purchase agreements, with various entities. As a result of these arrangements, Con Edison retains or may retain a variable interest in these entities.

Con Edison has a variable interest in a non-consolidated VIE related to Con Edison Development's sole limited interest in an affordable housing partnership that began in 2000. Con Edison is not the primary beneficiary of this VIE since Con Edison Development is a limited partner in the arrangement and does not hold any rights to manage or control the business of the partnership. Con Edison Development's maximum exposure to loss as a result of its involvement with the VIE is $0.3 million at December 31, 2010 and $4 million at December 31, 2009. The maximum exposure to loss is the carrying value of the investment less amortization. In addition, Con Edison has guaranteed the debt undertaken by the partnership. See Note H.

CECONY has a variable interest in a non-consolidated VIE, Astoria Energy, LLC (Astoria Energy), with which CECONY has entered into a long-term electricity purchase agreement. CECONY is not the primary beneficiary of this VIE since CECONY does not have the power to direct the activities that CECONY believes most significantly impact the economic performance of Astoria Energy. In particular, CECONY has not invested in, or guaranteed the indebtedness of, Astoria Energy and CECONY does not operate or maintain Astoria Energy's generating facilities. CECONY also has long-term electricity purchase agreements with the following five potential VIEs: Sithe/Independence Power Partners, LP, Cogen Technologies Linden Venture, LP, Selkirk Cogen Partners, LP, Brooklyn Navy Yard Cogeneration Partners, LP, and Indeck Energy Services of Corinth, Inc. In each quarter of 2010, requests were made of these five counterparties for information necessary to determine whether the entity was a VIE and whether CECONY is the primary beneficiary; however, the information was not made available. See Note I for information on these electricity purchase agreements, the payments pursuant to which constitute CECONY's maximum exposure to loss with respect to Astoria Energy and the five potential VIEs.

Con Edison has a variable interest in a non-consolidated VIE, Pilesgrove Solar, LLC (Pilesgrove), in which Con Edison Development, starting in 2010, is participating with a third party to develop, construct, and operate a photovoltaic solar energy generation project. Con Edison is not the primary beneficiary of this VIE since the power to direct the activities that most significantly impact the economics of Pilesgrove is shared equally between Con Edison Development and the third party. Included in the Companies' consolidated balance sheet at December 31, 2010 is $32 million in assets related to Pilesgrove which primarily represents the amount of a construction loan provided by Con Edison Development plus accrued interest. The maximum exposure to loss is the carrying value of the loan provided to date plus up to $52 million of additional financing which Con Edison Development is obligated to provide.

Asset Retirement Obligations

Disclosure of variable interest entities (VIE), including, but not limited to the nature, purpose, size, and activities of the VIE, the carrying amount and classification of consolidated assets that are collateral for the VIE's obligations, lack of recourse if creditors (or beneficial interest holders) of a consolidated VIE have no recourse to the general credit of the primary beneficiary. An enterprise that holds a significant variable interest in a VIE but is not the primary beneficiary may disclose the nature of its involvement with the VIE and when that involvement began, the nature, purpose, size, and activities of the VIE and the enterprise's maximum exposure to loss as a result of its involvement with the VIE.

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Asset Retirement Obligations

12 Months Ended

Dec. 31, 2010

Note R – Asset Retirement Obligations

Con Edison and CECONY account for retirement obligations on their assets in accordance with the accounting rules for asset retirement obligations. This accounting standard requires recognition of a liability for legal obligations associated with the retirement of long-lived assets. When the liability is initially recorded, asset retirement costs are capitalized by increasing the carrying amount of the related asset. The liability is accreted to its present value each period and the capitalized cost is depreciated over the useful life of the related asset.

The Utilities include in depreciation the estimated removal costs, less salvage, for utility plant assets. In accordance with the accounting rules for asset retirement obligations, future removal costs that do not represent legal asset retirement obligations are recorded as regulatory liabilities pursuant to the accounting rules for regulated operations. The related regulatory liabilities recorded for Con Edison and CECONY were $421 million and $349 million at December 31, 2010 and $371 million and $303 million at December 31, 2009, respectively.

The Companies identified future asset retirement obligations associated with the removal of asbestos and asbestos-containing material in their buildings and equipment within the generating stations and substations, and within the steam and gas distribution systems. The Companies also identified asset retirement obligations relating to gas pipelines abandoned in place. The estimates of future liabilities were developed using historical information, and where available, quoted prices from outside contractors. The obligation for the cost of asbestos removal from the Companies' generating stations and substation structures was not accrued since the retirement dates cannot be reasonably estimated.

At December 31, 2010, the liabilities of Con Edison and CECONY for the fair value of their legal asset retirement obligations were $109 million, as compared with $122 million at December 31, 2009. In addition, Con Edison and CECONY increased utility plant, net of accumulated depreciation, for asset retirement costs at December 31, 2010 by $18 million, as compared with $28 million at December 31, 2009. Pursuant to the accounting rules for regulated operations, CECONY also recorded a reduction of $91 million and $94 million at December 31, 2010 and 2009, respectively, to the regulatory liability associated with cost of removal to reflect accumulated depreciation and interest accretion costs.

Related Party Transactions

12 Months Ended

Dec. 31, 2010

Related Party Transactions

Note S – Related Party Transactions

The Utilities and Con Edison's competitive businesses provide administrative and other services to each other pursuant to cost allocation procedures approved by the NYSPSC. The costs of administrative and other services provided by CECONY to, and received by it from, Con Edison and its other subsidiaries for the years ended December 31, 2010, 2009 and 2008 were as follows:


	CECONY
*(Millions of Dollars)*	2010		2009		2008
Cost of services provided	$	74	$	75	$	65
Cost of services received	$	45	$	45	$	50

In addition, CECONY and O&R have joint gas supply arrangements, in connection with which CECONY sold to O&R $99 million, $124 million and $183 million of natural gas for the years ended December 31, 2010, 2009 and 2008, respectively. These amounts are net of the effect of related hedging transactions.

CECONY entered into financial contracts on behalf of O&R with various brokers and counterparties to hedge purchases of electricity. For the year ended December 31, 2008, the realized gains recorded as part of purchase power expense is $0.2 million. There were no electric hedging transactions executed by CECONY on behalf of O&R for the years ended December 31, 2010 and 2009.

FERC has authorized CECONY through 2011 to lend funds to O&R from time to time, for periods of not more than 12 months, in amounts not to exceed $250 million outstanding at any time, at prevailing market rates. There were no outstanding loans to O&R at December 31, 2010 and 2009.

New Financial Accounting Standards

This element may be used for the entire related party transactions disclosure as a single block of text. Disclosure may include: the nature of the relationship(s), a description of the transactions, the amount of the transactions, the effects of any change in the method of establishing the terms of the transaction from the previous period, stated interest rate, expiration date, terms and manner of settlement per the agreement with the related party, and amounts due to or from related parties. If the entity and one or more other entities are under common ownership or management control and this control affects the operating results or financial position, disclosure includes the nature of the control relationship even if there are no transactions between the entities. Disclosure may also include the aggregate amount of current and deferred tax expense for each statement of earnings presented where the entity is a member of a group that files a consolidated tax return, the amount of any tax related balances due to or from affiliates as of the date of each statement of financial position presented, the principal provisions of the method by which the consolidated amount of current and deferred tax expense is allocated to the members of the group and the nature and effect of any changes in that method. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

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New Financial Accounting Standards

12 Months Ended

Dec. 31, 2010

Note T – New Financial Accounting Standards

In February 2010, the Financial Accounting Standards Board (FASB) issued new guidance for subsequent events through Accounting Standards Update (ASU) No. 2010-09, "Subsequent Events (Topic 855): Amendments to Certain Recognition and Disclosure Requirements." The amendments in this update eliminates requirements for SEC filers to disclose the date through which subsequent events have been evaluated. The application of this guidance did not have a material impact on the Companies' financial position, results of operations or liquidity.

In December 2010, the FASB issued amendments to the guidance for intangibles through ASU No. 2010-28, "Intangibles – Goodwill and Other (Topic 360): When to Perform Step 2 of the Goodwill Impairment Test for Reporting Units with Zero or Negative Carrying Amounts." The amendments in this update to the ASC modifies Step 1 of the goodwill impairment test to require those reporting units with zero or negative carrying value to be evaluated under Step 2 of the impairment test if circumstances or events indicate that it is more likely than not that a goodwill impairment exists. For public entities, this update is effective for the fiscal year and interim periods within those years, beginning after December 15, 2010. The application of this guidance is not expected to have a material impact on the Companies' financial position, results of operations or liquidity.

Con Edison Development

12 Months Ended

Dec. 31, 2010

Con Edison Development

Note U – Con Edison Development

During the second quarter of 2008, Con Edison Development and its subsidiary, CED/SCS Newington, LLC, completed the sale of their ownership interests in electricity generating plants (Rock Springs, Ocean Peaking Power, CEEMI, Newington and Lakewood) with an aggregate capacity of approximately 1,706 megawatts to North American Energy Alliance, LLC. The sale resulted in total cash proceeds, net of estimated taxes and transaction expenses, of $1,067 million, and an after-tax gain, net of all transaction expenses, of approximately $400 million.

In May 2008, Con Edison Energy entered into agreements to provide energy management services, such as plant scheduling and fuel procurement, for the Rock Springs, Ocean Peaking Power and CEEMI projects for one to two years. Such services were expected to give rise to a significant level of continuing direct cash flows between Con Edison Energy and the disposed projects, and to provide Con Edison Energy with significant continuing involvement with the operations of the disposed projects. As a result, under the guidance of the accounting rules for presentation of financial statements – discontinued operations, Con Edison concluded that the Rock Springs, Ocean Peaking Power and CEEMI projects did not qualify for discontinued operations. Accordingly, the results of operations of these projects prior to the completion of the sale in 2008, along with the after-tax gain, net of transaction expenses, of $136 million associated with the sale of these projects, have been reported within continuing operations in the accompanying Con Edison consolidated income statement.

Con Edison's competitive energy businesses engaged in certain services for the Newington and Lakewood projects on a short-term basis after the sale. However, such services were much more limited than those provided to the Rock Springs, Ocean Peaking Power and CEEMI projects, and did not give rise to a significant level of continuing direct cash flows between Con Edison and the disposed projects, or provide Con Edison with significant continuing involvement in the operating or financial policies of the disposed projects. As a result, Con Edison believes that the criteria within the accounting rules for presentation of financial statements – discontinued operations have been met for the Newington and Lakewood projects. Accordingly, the results of operations of these projects prior to the completion of the sale in 2008 have been reflected in income from discontinued operations (net of income taxes) in the accompanying Con Edison consolidated income statement. The Newington and Lakewood projects had revenues of $143 million and pre-tax profit of $7 million for the year ended December 31, 2008. Income from discontinued operations also includes the after-tax gain, net of transaction expenses, of $270 million associated with the sale of these projects.

Schedule I Condensed Financial Information

12 Months Ended

Dec. 31, 2010

Schedule I Condensed Financial Information

Schedule I

Condensed Financial Information of Consolidated Edison, Inc.*

Condensed Income Statement

(Parent Company Only)


	2010			2009			2008
	(Millions of Dollars, except per share amounts)
Equity in earnings of subsidiaries	$	1,008		$	883		$	900
Other income (deductions), net of taxes		12			14			48
Interest expense		(28	)		(29	)		(26	)
Income From Continuing Operations		992			868			922
Income from Discontinued Operations (Net of Tax Expense of $177 in 2008)		—			—			274
Net Income for Common Stock	$	992		$	868		$	1,196
Earnings Per Common Share – Basic
Continuing operations	$	3.49		$	3.16		$	3.37
Discontinued operations		—			—			1.01
Net Income Per Common Share – Basic	$	3.49		$	3.16		$	4.38
Earnings Per Common Share – Diluted
Continuing operations	$	3.47		$	3.14		$	3.36
Discontinued operations		—			—			1.01
Net Income Per Common Share – Diluted	$	3.47		$	3.14		$	4.37
Dividends Declared Per Share Of Common Stock	$	2.38		$	2.36		$	2.34
Average Number Of Shares Outstanding – Basic (In Millions)		284.3			275.2			272.9
Average Number Of Shares Outstanding – Diluted (In Millions)		285.9			276.3			273.6

*	These financial statements, in which Con Edison's subsidiaries have been included using the equity method, should be read together with its consolidated financial statements and the notes thereto appearing above.

Condensed Financial Information of Consolidated Edison, Inc.*

Condensed Statement of Cash Flows

(Parent Company Only)


	2010			2009			2008
	*(Millions of Dollars)*
Net Income	$	992		$	868		$	1,196
Equity in earnings of subsidiaries		(1,008	)		(883	)		(1,174	)
Dividends received from:
CECONY		670			652			618
O&R		32			32			31
Competitive energy businesses		8			8			12
Other – net		(4	)		85			(462	)
Net Cash Flows From Operating Activities		690			762			221
INVESTING ACTIVITIES
Contributions to subsidiaries		(355	)		(241	)		(791	)
Proceeds from sale of subsidiaries		—			—			1,461
Net Cash Flows (Used In)/From Investing Activities		(355	)		(241	)		670
FINANCING ACTIVITIES
Net payments of short-term debt		—			(110	)		(130	)
Retirement of long-term debt		(3	)		(4	)		(200	)
Common shares issued		439			257			42
Common stock dividends		(629	)		(601	)		(618	)
Net Cash Flows Used In Financing Activities		(192	)		(458	)		(906	)
Net Change For The Period		142			63			(15	)
Balance At Beginning Of Period		80			17			32
Balance At End Of Period	$	222		$	80		$	17

*	These financial statements, in which Con Edison's subsidiaries have been included using the equity method, should be read together with its consolidated financial statements and the notes thereto appearing above.

Condensed Financial Information of Consolidated Edison, Inc.*

Condensed Balance Sheet

(Parent Company Only)


	At December 31,
	2010		2009
	*(Millions of Dollars)*
ASSETS
CURRENT ASSETS
Cash and temporary cash investments	$	222	$	80
Accounts receivable – other		123		79
Accounts receivable from affiliated companies		—		1
Prepayments		240		32
Other current assets		50		158
Total Current Assets		635		350
Investments in subsidiaries and others		11,807		11,152
Goodwill		406		406
Federal income tax due from taxing authority		1		1
Deferred income tax		38		22
Other assets		4		10
Total Assets	$	12,891	$	11,941
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Long-term debt due within one year	$	1	$	3
Accounts payable		7		8
Accounts payable from affiliated companies		176		—
Other current liabilities		312		309
Total Current Liabilities		496		320
Noncurrent Liabilities		—		36
Total Liabilities		503		356
LONG-TERM DEBT		314		316
SHAREHOLDERS' EQUITY
Common stock		4,900		4,404
Retained earnings		7,181		6,865
Total Shareholders' Equity		12,081		11,269
Total Liabilities And Shareholders' Equity	$	12,891	$	11,941

*	These financial statements, in which Con Edison's subsidiaries have been included using the equity method, should be read together with its consolidated financial statements and the notes thereto appearing above.

Schedule II Valuation and Qualifying Accounts

This element can be used to encapsulate the entire condensed financial information disclosure, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document.

+ References+ Details

Schedule II Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2010

Schedule II

Valuation and Qualifying Accounts

For the Years Ended December 31, 2010, 2009 and 2008


					COLUMN C Additions
Company	COLUMN A Description		COLUMN B Balance at Beginning of Period		(1) Charged To Costs And Expenses		(2) Charged To Other Accounts		COLUMN D Deductions(b)		COLUMN E Balance At End of Period
	*(Millions of Dollars)*
Con Edison		Allowance for uncollectible accounts(a):
		2010	$	75	$	91		—	$	82	$	84
		2009	$	64	$	98		—	$	87	$	75
		2008	$	52	$	85		—	$	73	$	64
CECONY		Allowance for uncollectible accounts(a):
		2010	$	67	$	82		—	$	74	$	75
		2009	$	56	$	93		—	$	82	$	67
		2008	$	46	$	79		—	$	69	$	56

(a)	This is a valuation account deducted in the balance sheet from the assets (Accounts receivable-customers) to which they apply.

(b)	Accounts written off less cash collections, miscellaneous adjustments and amounts reinstated as receivables previously written off.

Summary of Significant Accounting Policies (Policy)

12 Months Ended

Dec. 31, 2010

Principles of Consolidation

Principles of Consolidation

Accounting Policies

Other significant accounting policies of the Companies are referenced below in this Note A and in the notes that follow.

Plant and Depreciation

Utility Plant

At December 31, 2010 and 2009, the capitalized cost of the Companies' utility plant, net of accumulated depreciation, was as follows:


	Con Edison				CECONY
*(Millions of Dollars)*	2010		2009		2010		2009
Electric
Generation	$	396	$	392	$	396	$	392
Transmission		2,284		2,090		2,150		1,953
Distribution		13,191		12,442		12,549		11,824
Gas*		3,535		3,226		3,153		2,892
Steam		1,617		1,555		1,617		1,555
General		1,241		1,231		1,125		1,117
Held for future use		72		82		60		70
Construction work in progress		1,458		1,421		1,344		1,334
Net Utility Plant	$	23,794	$	22,439	$	22,394	$	21,137

*	Primarily distribution.

Non-Utility Plant

Goodwill

Goodwill

Impairments

Revenues

Revenues

Public Utility Information

Recoverable Energy Costs

New York Independent System Operator (NYISO)

Sulfur Dioxide (SO₂) Allowances

Temporary Cash Investments

Temporary Cash Investments

Investments

Investments

Pension and Other Postretirement Benefits

Pension and Other Postretirement Benefits

Income Taxes

Federal Income Tax

Accumulated deferred investment tax credits are amortized ratably over the lives of the related properties and applied as a reduction to future federal income tax expense.

State Income Tax

Research and Development Costs

Research and Development Costs

Generally research and development costs are charged to operating expenses as incurred. Research and development costs were as follows:


	For the Years Ended December 31,
*(Millions of Dollars)*	2010		2009		2008
Con Edison	$	23	$	27	$	29
CECONY	$	21	$	25	$	28

Reclassification

Reclassification

Certain prior year amounts have been reclassified to conform with the current year presentation.

Earnings Per Common Share

Earnings Per Common Share

Basic and diluted EPS for Con Edison are calculated as follows:


	For the Years Ended December 31,
*(Millions of Dollars, except per share amounts/Shares in Millions)*	2010		2009		2008
Income for common stock from continuing operations	$	992	$	868	$	922
Income for common stock from discontinued operations, net of tax		—		—		274
Net income for common stock	$	992	$	868	$	1,196
Weighted average common shares outstanding – Basic		284.3		275.2		272.9
Add: Incremental shares attributable to effect of potentially dilutive securities		1.6		1.1		0.7
Adjusted weighted average common shares outstanding – Diluted		285.9		276.3		273.6
Earnings per Common Share – Basic
Continuing operations	$	3.49	$	3.16	$	3.37
Discontinued operations		—		—		1.01
Net income for common stock	$	3.49	$	3.16	$	4.38
Earnings per Common Share – Diluted
Continuing operations	$	3.47	$	3.14	$	3.36
Discontinued operations		—		—		1.01
Net income for common stock	$	3.47	$	3.14	$	4.37

Estimates

Estimates

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2010

Capitalized Cost of Utility Plant

	Con Edison					CECONY
*(Millions of Dollars)*		2010		2009			2010		2009
Electric
Generation		$	396	$	392		$	396	$	392
Transmission			2,284		2,090			2,150		1,953
Distribution			13,191		12,442			12,549		11,824
Gas*			3,535		3,226			3,153		2,892
Steam			1,617		1,555			1,617		1,555
General			1,241		1,231			1,125		1,117
Held for future use			72		82			60		70
Construction work in progress			1,458		1,421			1,344		1,334
Net Utility Plant		$	23,794	$	22,439		$	22,394	$	21,137

*	Primarily distribution.

Research and Development Costs


	For the Years Ended December 31,
*(Millions of Dollars)*	2010		2009		2008
Con Edison	$	23	$	27	$	29
CECONY	$	21	$	25	$	28

Earnings Per Common Share


	For the Years Ended December 31,
*(Millions of Dollars, except per share amounts/Shares in Millions)*	2010		2009		2008
Income for common stock from continuing operations	$	992	$	868	$	922
Income for common stock from discontinued operations, net of tax		—		—		274
Net income for common stock	$	992	$	868	$	1,196
Weighted average common shares outstanding – Basic		284.3		275.2		272.9
Add: Incremental shares attributable to effect of potentially dilutive securities		1.6		1.1		0.7
Adjusted weighted average common shares outstanding – Diluted		285.9		276.3		273.6
Earnings per Common Share – Basic
Continuing operations	$	3.49	$	3.16	$	3.37
Discontinued operations		—		—		1.01
Net income for common stock	$	3.49	$	3.16	$	4.38
Earnings per Common Share – Diluted
Continuing operations	$	3.47	$	3.14	$	3.36
Discontinued operations		—		—		1.01
Net income for common stock	$	3.47	$	3.14	$	4.37

Regulatory Assets and Liabilities

Description, amount and terms involving research, development, and computer software activities, including contracts and arrangements to be performed for others and with federal government. Includes costs incurred (1) in a planned search or critical investigation aimed at discovery of new knowledge with the hope that such knowledge will be useful in developing a new product or service, a new process or technique, or in bringing about a significant improvement to an existing product or process; or (2) to translate research findings or other knowledge into a plan or design for a new product or process or for a significant improvement to an existing product or process whether intended for sale or the entity's use, during the reporting period charged to research and development projects, including the costs of developing computer software up to the point in time of achieving technological feasibility and in-process research and development acquired in a business combination consummated during the period.

+ References+ Details

Regulatory Matters (Tables)

12 Months Ended

Dec. 31, 2010


	Con Edison				CECONY
*(Millions of Dollars)*	2010		2009		2010		2009
Regulatory assets
Unrecognized pension and other postretirement costs	$	4,371	$	4,472	$	4,152	$	4,259
Future federal income tax		1,593		1,316		1,515		1,249
Environmental remediation costs		695		392		574		333
Surcharge for New York State Assessment		121		138		112		126
Net electric deferrals		156		82		156		82
Pension and other post-retirement benefits deferrals		138		101		90		49
Revenue taxes		145		120		140		116
Deferred derivative losses – long-term		74		106		48		75
Deferred storm costs		57		5		43		—
Property tax reconciliation		34		85		27		85
O&R transition bond charges		48		55		—		—
World Trade Center restoration costs		45		41		45		41
Workers' compensation		31		37		31		37
Other		135		153		125		138
Regulatory assets – long-term		7,643		7,103		7,058		6,590
Deferred derivative losses – current		190		141		151		104
Recoverable energy costs – current		13		31		—		—
Regulatory assets – current		203		172		151		104
Total Regulatory Assets	$	7,846	$	7,275	$	7,209	$	6,694
Regulatory liabilities
Allowance for cost of removal less salvage	$	422	$	371	$	350	$	303
Net unbilled revenue deferrals		136		91		136		91
Refundable energy costs		80		118		50		77
Revenue decoupling mechanism		32		—		32		—
New York State tax refund		30		—		30		—
Gain on sale of properties		29		24		29		24
Rate case amortizations		—		21		—		21
Electric rate case deferral		—		19		—		19
2005-2008 capital expenditure reserve		—		24		—		24
Other		186		161		156		144
Regulatory liabilities		915		829		783		703
Deferred derivative gains – current		4		9		3		8
Total Regulatory Liabilities	$	919	$	838	$	786	$	711

Capitalization (Tables)

12 Months Ended

Dec. 31, 2010

Schedule of Long-Term Debt Maturities


*(Millions of Dollars)*	Con Edison		CECONY
2011	$	5	$	—
2012		305		300
2013		706		700
2014		481		475
2015		495		350

Fair Values of Long-term Debt


	December 31,
	2010 *(in millions)*				2009 *(in millions)*
Long-Term Debt (including current portion)	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Con Edison	$	10,676	$	11,795	$	10,585	$	11,009
CECONY	$	9,743	$	10,680	$	9,663	$	10,052

Pension Benefits (Tables)

12 Months Ended

Dec. 31, 2010

Dec. 31, 2009

Companies' Net Periodic Benefit Costs


	Con Edison									CECONY
*(Millions of Dollars)*	2010			2009			2008			2010			2009			2008
Service cost – including administrative expenses	$	168		$	159		$	139		$	157		$	149		$	129
Interest cost on projected benefit obligation		556			525			515			521			492			482
Expected return on plan assets		(704	)		(691	)		(691	)		(670	)		(659	)		(660	)
Amortization of net actuarial loss		425			299			192			401			271			170
Amortization of prior service costs		8			8			8			6			7			7
NET PERIODIC BENEFIT COST	$	453		$	300		$	163		$	415		$	260		$	128
Amortization of regulatory asset*		2			3			4			2			3			4
TOTAL PERIODIC BENEFIT COST	$	455		$	303		$	167		$	417		$	263		$	132
Cost capitalized		(157	)		(109	)		(59	)		(146	)		(98	)		(50	)
Cost deferred		(115	)		(38	)		(40	)		(113	)		(32	)		(40	)
Cost charged (credited) to operating expenses	$	183		$	156		$	68		$	158		$	133		$	42

*	Relates to increases in CECONY's pension obligations of $33 million from a 1993 special retirement program and $45 million from a 1999 special retirement program.

Reconciliation of Fair Value Balances for Net Assets


*(Millions of Dollars)*	Beginning Balance as of January 1, 2009			Assets Still Held at Reporting Date – Unrealized Gains (Losses)			Assets Sold During the Period – Realized Gains			Purchases Sales and Settlements			Ending Balance as of December 31, 2009
U.S. Equity	$	1		$	2		$	(2	)	$	(1	)	$	—
International Equity		—			—			—			1			1
Corporate Bonds		172			35			(7	)		(57	)		143
Structured Assets		194			93			(70	)		(126	)		91
Other Fixed Income		52			2			1			(9	)		46
Swaps		(32	)		13			(51	)		67			(3	)
Options		5			(4	)		4			(5	)		—
Real Estate		515			(177	)		—			6			344
Total investments	$	907		$	(36	)	$	(125	)	$	(124	)	$	622
Funds for retiree health benefits		(41	)		2			6			5			(28	)
Investments (excluding funds for retiree health benefits)	$	866		$	(34	)	$	(119	)	$	(119	)	$	594

Schedule of Employer Contribution to Defined Savings Plan


	For the Years Ended December 31
*(Millions of Dollars)*	2010		2009		2008
Con Edison	$	19	$	19	$	21
CECONY		17		17		19

Pension Benefits [Member]

Schedule of Funded Status


	Con Edison									CECONY
*(Millions of Dollars)*	2010			2009			2008			2010			2009			2008
CHANGE IN PROJECTED BENEFIT OBLIGATION
Projected benefit obligation at beginning of year	$	9,408		$	9,383		$	8,696		$	8,803		$	8,793		$	8,137
Service cost – excluding administrative expenses		160			158			137			149			147			128
Interest cost on projected benefit obligation		556			525			515			521			492			482
Plan amendments		6			5			—			—			—			—
Net actuarial (gain)/loss		636			(215	)		468			607			(216	)		449
Benefits paid		(459	)		(448	)		(433	)		(427	)		(413	)		(403	)
PROJECTED BENEFIT OBLIGATION AT END OF YEAR	$	10,307		$	9,408		$	9,383		$	9,653		$	8,803		$	8,793
CHANGE IN PLAN ASSETS
Fair value of plan assets at beginning of year	$	6,877		$	5,836		$	8,400		$	6,544		$	5,562		$	8,025
Actual return on plan assets		888			1,220			(2,263	)		846			1,166			(2,158	)
Employer contributions		443			291			154			404			249			119
Benefits paid		(459	)		(448	)		(433	)		(427	)		(413	)		(403	)
Administrative expenses		(28	)		(22	)		(22	)		(27	)		(20	)		(21	)
FAIR VALUE OF PLAN ASSETS AT END OF YEAR	$	7,721		$	6,877		$	5,836		$	7,340		$	6,544		$	5,562
FUNDED STATUS	$	(2,586	)	$	(2,531	)	$	(3,547	)	$	(2,313	)	$	(2,259	)	$	(3,231	)
Unrecognized net loss		3,915			3,868			4,890			3,716			3,666			4,641
Unrecognized prior service costs		38			40			44			22			28			35
Accumulated benefit obligation		9,319			8,598			8,559			8,694			8,015			7,993

Schedule of Assumptions


	2010			2009			2008
Weighted-average assumptions used to determine benefit obligations at December 31:
Discount rate		5.60	%		6.05	%		5.75	%
Rate of compensation increase
– CECONY		4.35	%		4.00	%		4.00	%
– O&R		4.25	%		4.00	%		4.00	%
Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31:
Discount rate		6.05	%		5.75	%		6.00	%
Expected return on plan assets		8.50	%		8.50	%		8.50	%
Rate of compensation increase
– CECONY		4.00	%		4.00	%		4.00	%
– O&R		4.00	%		4.00	%		4.00	%

Schedule of Expected Benefit Payments


*(Millions of Dollars)*	2011		2012		2013		2014		2015		2016-2020
Con Edison	$	501	$	528	$	554	$	580	$	605	$	3,376
CECONY		467		492		516		541		563		3,150

Schedule of Plan Assets Allocations


	Target Allocation Range		Plan Assets at December 31
Asset Category	2011		2010			2009			2008
Equity Securities		57% - 73%		67	%		67	%		59	%
Debt Securities		21% - 33%		28	%		28	%		33	%
Real Estate		5% - 11%		5	%		5	%		8	%
Total		100%		100	%		100	%		100	%

Schedule of Fair Value of Plan Assets

The fair values of the pension plan assets at December 31, 2010 by asset category are as follows:


*(Millions of Dollars)*	Level 1			Level 2			Level 3			Total
U.S. Equity(a)	$	3,935		$	—		$	—		$	3,935
International Equity(b)		1,249			234			—			1,483
U.S. Government Issues(c)		—			1,300			—			1,300
Corporate Bonds(d)		—			571			129			700
Structured Assets(e)		—			—			87			87
Other Fixed Income(f)		—			31			66			97
Real Estate(g)		—			—			398			398
Cash and Cash Equivalents(h)		3			232			—			235
Total investments	$	5,187		$	2,368		$	680		$	8,235
Funds for retiree health benefits(i)		(226	)		(103	)		(30	)		(359	)
Investments (excluding funds for retiree health benefits)	$	4,961		$	2,265		$	650		$	7,876
Pending activities(j)											(155	)
Total fair value of plan net assets										$	7,721

(a)	U.S. Equity includes both actively- and passively-managed assets with investments in domestic equity index funds, actively-managed small-capitalization equities, rights and warrants.

(b)	International Equity includes international equity index funds, actively-managed international equities, rights and warrants.

(c)	U.S. Government Issues include agency and treasury securities.

(d)	Corporate Bonds held in institutional mutual funds which are measured at Net Asset Value (NAV) are classified as Level 3.

(e)	Structured Assets are measured using broker quotes and investment manager proprietary models and include commercial-mortgage-backed securities, collateralized mortgage obligations and asset-backed securities.

(f)	Other Fixed Income includes emerging market debt valued using broker quotes, municipal bonds, sovereign debt, regional governments and government agencies.

(g)	Real Estate investments include real estate funds based on appraised values that are broadly diversified by geography and property type.

(h)	Cash and Cash Equivalents include short term investments, money markets and foreign currency.

(i)

(j)	Pending activities include security purchases and sales that have not settled, interest and dividends that have not been received and reflects adjustments for available estimates at year end.

The fair values of the pension plan assets at December 31, 2009 by asset category are as follows:


*(Millions of Dollars)*	Level 1			Level 2			Level 3			Total
U.S. Equity(a)	$	3,470		$	—		$	—		$	3,470
International Equity(b)		1,140			196			1			1,337
U.S. Government Issues(c)		—			1,255			—			1,255
Corporate Bonds(d)		—			435			143			578
Structured Assets(e)		—			—			91			91
Other Fixed Income(f)		—			10			46			56
Swaps(g)		—			—			(3	)		(3	)
Real Estate(h)		—			—			344			344
Cash and Cash Equivalents(i)		197			141			—			338
Total investments	$	4,807		$	2,037		$	622		$	7,466
Funds for retiree health benefits(j)		(215	)		(91	)		(28	)		(334	)
Investments (excluding funds for retiree health benefits)	$	4,592		$	1,946		$	594		$	7,132
Pending activities(k)											(255	)
Total fair value of plan net assets										$	6,877

(a)	U.S. Equity includes both actively- and passively-managed assets with investments in domestic equity index funds, actively-managed small-capitalization equities, rights and warrants.

(b)	International Equity includes international equity index funds, actively-managed international equities, rights and warrants.

(c)	U.S. Government Issues include agency and treasury securities.

(d)	Corporate Bonds held in institutional mutual funds which are measured at Net Asset Value (NAV) are classified as Level 3.

(e)	Structured Assets are measured using broker quotes and investment manager proprietary models and include commercial-mortgage-backed securities, collateralized mortgage obligations and asset-backed securities.

(f)	Other Fixed Income includes emerging market debt valued using broker quotes, municipal bonds, sovereign debt, regional governments and government agencies.

(g)	Swaps include total return swaps, interest rate swaps, credit default swaps and swap collateral. Level 3 Swaps are valued using proprietary investment manager models.

(h)	Real Estate investments include real estate funds based on appraised values that are broadly diversified by geography and property type.

(i)	Cash and Cash Equivalents include short term investments, money markets and foreign currency.

(j)

The Companies set aside funds for retiree health benefits through a separate account within the pension trust, as permitted under Section 401(h) of the Internal Revenue Code of 1986, as amended. In accordance with the Code, the plan's investments in the 401(h) account may not be used for, or diverted to, any purpose other than providing health benefits for retirees and their beneficiaries. The net assets held in the 401(h) account are calculated based on a pro-rata percentage allocation of the net assets in the pension plan. The related obligations for health benefits are not included in the pension plan's obligations and are included in the other postretirement benefit obligation. See Note F.

(k)	Pending activities include security purchases and sales that have not settled and interest and dividends that have not been received.

Reconciliation of Fair Value Balances for Net Assets


*(Millions of Dollars)*	Beginning Balance as of January 1, 2010			Assets Still Held at Reporting Date – Unrealized Gains (Losses)			Assets Sold During the Period – Realized Gains			Purchases Sales and Settlements			Ending Balance as of December 31, 2010
U.S. Equity	$	—			—			—			—		$	—
International Equity		1			1			(1	)		(1	)		—
Corporate Bonds		143			(3	)		9			(20	)		129
Structured Assets		91			15			(6	)		(13	)		87
Other Fixed Income		46			—			2			18			66
Swaps		(3	)		2			(1	)		2			—
Real Estate		344			47			—			7			398
Total investments	$	622			62			3			(7	)	$	680
Funds for retiree health benefits		(28	)		(3	)		(2	)		3			(30	)
Investments (excluding funds for retiree health benefits)	$	594		$	59		$	1		$	(4	)	$	650

Other Postretirement Benefits (Tables)

12 Months Ended

Dec. 31, 2010

Dec. 31, 2009

Schedule Of Net Periodic Benefit Cost


	Con Edison									CECONY
*(Millions of Dollars)*	2010			2009			2008			2010			2009			2008
Service cost – including administrative expenses	$	168		$	159		$	139		$	157		$	149		$	129
Interest cost on projected benefit obligation		556			525			515			521			492			482
Expected return on plan assets		(704	)		(691	)		(691	)		(670	)		(659	)		(660	)
Amortization of net actuarial loss		425			299			192			401			271			170
Amortization of prior service costs		8			8			8			6			7			7
NET PERIODIC BENEFIT COST	$	453		$	300		$	163		$	415		$	260		$	128
Amortization of regulatory asset*		2			3			4			2			3			4
TOTAL PERIODIC BENEFIT COST	$	455		$	303		$	167		$	417		$	263		$	132
Cost capitalized		(157	)		(109	)		(59	)		(146	)		(98	)		(50	)
Cost deferred		(115	)		(38	)		(40	)		(113	)		(32	)		(40	)
Cost charged (credited) to operating expenses	$	183		$	156		$	68		$	158		$	133		$	42

*	Relates to increases in CECONY's pension obligations of $33 million from a 1993 special retirement program and $45 million from a 1999 special retirement program.

Reconciliation of Fair Value Balances for Net Assets


*(Millions of Dollars)*	Beginning Balance as of January 1, 2009			Assets Still Held at Reporting Date – Unrealized Gains (Losses)			Assets Sold During the Period – Realized Gains			Purchases Sales and Settlements			Ending Balance as of December 31, 2009
U.S. Equity	$	1		$	2		$	(2	)	$	(1	)	$	—
International Equity		—			—			—			1			1
Corporate Bonds		172			35			(7	)		(57	)		143
Structured Assets		194			93			(70	)		(126	)		91
Other Fixed Income		52			2			1			(9	)		46
Swaps		(32	)		13			(51	)		67			(3	)
Options		5			(4	)		4			(5	)		—
Real Estate		515			(177	)		—			6			344
Total investments	$	907		$	(36	)	$	(125	)	$	(124	)	$	622
Funds for retiree health benefits		(41	)		2			6			5			(28	)
Investments (excluding funds for retiree health benefits)	$	866		$	(34	)	$	(119	)	$	(119	)	$	594

Other Postretirement Benefit Plans, Defined Benefit [Member]

Schedule Of Net Periodic Benefit Cost


	Con Edison									CECONY
*(Millions of Dollars)*	2010			2009			2008			2010			2009			2008
Service cost	$	24		$	22		$	20		$	19		$	18		$	16
Interest cost on accumulated other postretirement benefit obligation		91			95			95			80			84			84
Expected return on plan assets		(86	)		(86	)		(86	)		(78	)		(78	)		(79	)
Amortization of net actuarial loss		92			74			68			85			65			59
Amortization of prior service cost		(12	)		(12	)		(12	)		(14	)		(14	)		(14	)
Amortization of transition obligation		3			3			3			3			3			4
NET PERIODIC POSTRETIREMENT BENEFIT COST	$	112		$	96		$	88		$	95		$	78		$	70
Cost capitalized		(39	)		(35	)		(32	)		(33	)		(29	)		(27	)
Cost charged/(deferred)		4			3			(11	)		1			1			(9	)
Cost charged to operating expenses	$	77		$	64		$	45		$	63		$	50		$	34

Schedule of Funded Status


	Con Edison									CECONY
*(Millions of Dollars)*	2010			2009			2008			2010			2009			2008
CHANGE IN BENEFIT OBLIGATION
Benefit obligation at beginning of year	$	1,697		$	1,702		$	1,630		$	1,495		$	1,495		$	1,433
Service cost		24			22			20			19			18			16
Interest cost on accumulated postretirement benefit obligation		91			95			95			80			84			84
Net actuarial loss/(gain)		(68	)		(14	)		46			(77	)		(3	)		44
Benefits paid and administrative expenses		(138	)		(141	)		(121	)		(126	)		(130	)		(111	)
Participant contributions		29			26			25			28			25			24
Medicare prescription benefit		7			7			7			7			6			5
BENEFIT OBLIGATION AT END OF YEAR	$	1,642		$	1,697		$	1,702		$	1,426		$	1,495		$	1,495
CHANGE IN PLAN ASSETS
Fair value of plan assets at beginning of year	$	866		$	737		$	988		$	777		$	668		$	907
Actual return on plan assets		89			153			(233	)		78			137			(215	)
Employer contributions		96			86			77			85			73			63
Participant contributions		29			26			25			28			25			24
Benefits paid		(138	)		(136	)		(120	)		(129	)		(126	)		(111	)
FAIR VALUE OF PLAN ASSETS AT END OF YEAR	$	942		$	866		$	737		$	839		$	777		$	668
FUNDED STATUS	$	(700	)	$	(831	)	$	(965	)	$	(587	)	$	(718	)	$	(827	)
Unrecognized net loss		483			646			799			440			601			728
Unrecognized prior service costs		(10	)		(23	)		(35	)		(26	)		(40	)		(54	)
Unrecognized net transition liability at January 1, 1993		7			11			15			7			11			15

Schedule of Assumptions


	2010			2009			2008
Weighted-average assumptions used to determine benefit obligations at December 31:
Discount Rate		5.40	%		5.95	%		5.75	%
Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31:
Discount Rate		5.95	%		5.75	%		6.00	%
Expected Return on Plan Assets
Tax-Exempt		8.50	%		8.50	%		8.50	%
Taxable
CECONY		7.50	%		7.50	%		7.50	%
O&R		8.00	%		8.00	%		8.00	%

Schedule of Change of Assumed Health Care Trend Rate


	Con Edison					CECONY
	1-Percentage-Point
(Millions of Dollars)	Increase		Decrease			Increase		Decrease
Effect on accumulated other postretirement benefit obligation	$	27	$	(11	)	$	3	$	9
Effect on service cost and interest cost components for 2010		2		(1	)		—		1

Schedule of Expected Benefit Payments


*(Millions of Dollars)*	2011		2012		2013		2014		2015		2016-2020
GROSS BENEFIT PAYMENTS
Con Edison	$	123	$	126	$	128	$	130	$	131	$	658
CECONY		111		113		115		117		117		578
MEDICARE PRESCRIPTION BENEFIT RECEIPTS
Con Edison	$	11	$	12	$	13	$	14	$	15	$	88
CECONY		10		11		12		13		13		79

Schedule of Plan Assets Allocations


	Target Allocation Range			Plan Assets at December 31
Asset Category	2011			2010			2009			2008
Equity Securities		57	% - 73%		67	%		66	%		56	%
Debt Securities		26	% - 44%		33	%		34	%		44	%
Total		100	%		100	%		100	%		100	%

Schedule of Fair Value of Plan Assets


*(Millions of Dollars)*	Level 1		Level 2		Level 3		Total
U.S. Equity(a)	$	118	$	172	$	—	$	290
International Equity(b)		—		107		—		107
Other Fixed Income(c)		—		—		189		189
Cash and Cash Equivalents(d)		—		11		—		11
Total investments	$	118	$	290	$	189	$	597
Funds for retiree health benefits(e)		226		103		30		359
Investments (including funds for retiree health benefits)	$	344	$	393	$	219	$	956
Pending activities(f)								(14	)
Total fair value of plan net assets							$	942

(a)	U.S. Equity includes both actively- and passively-managed assets with investments in domestic equity index funds and commingled funds.

(b)	International Equity includes commingled international equity funds.

(c)	Other Fixed Income includes commingled funds, which are valued at Net Asset Value (NAV).

(d)	Cash and Cash Equivalents include short term investments and money markets.

(e)

(f)	Pending activities include security purchases and sales that have not settled, interest and dividends that have not been received, and reflects adjustments for available estimates at year end.


*(Millions of Dollars)*	Level 1		Level 2		Level 3		Total
U.S. Equity(a)	$	101	$	143	$	—	$	244
International Equity(b)		—		92		—		92
Other Fixed Income(c)		—		—		173		173
Insurance Contracts(d)		—		—		8		8
Cash and Cash Equivalents(e)		—		9		—		9
Total investments	$	101	$	244	$	181	$	526
Funds for retiree health benefits(f)		215		91		28		334
Investments (including funds for retiree health benefits)	$	316	$	335	$	209	$	860
Pending activities(g)								6
Total fair value of plan net assets							$	866

(a)	U.S. Equity includes both actively-and passively-managed assets with investments in domestic equity index funds and commingled funds.

(b)	International Equity includes commingled international equity funds.

(c)	Other Fixed Income includes commingled funds, which are valued at Net Asset Value (NAV).

(d)	Insurance Contracts represent the cash surrender value of life insurance policies. The contracts are measured at NAV, adjusted for fees charged by the insurance company.

(e)	Cash and Cash Equivalents include short term investments and money markets.

(f)

The Companies set aside funds for retiree health benefits through a separate account within the pension trust, as permitted under Section 401(h) of the Internal Revenue Code of 1986, as amended. In accordance with the Code, the plan's investments in the 401(h) account may not be used for, or diverted to, any purpose other than providing health benefits for retirees and their beneficiaries. The net assets held in the 401(h) account are calculated based on a pro-rata percentage allocation of the net assets in the pension plan. The related obligations for health benefits are not included in the pension plan's obligations and are included in the other postretirement benefit obligation. See Note E.

(g)	Pending activities include security purchases and sales that have not settled and interest and dividends that have not been received.

Reconciliation of Fair Value Balances for Net Assets


*(Millions of Dollars)*	Beginning Balance as of January 1, 2010		Assets Still Held at Reporting Date – Unrealized Gains (Losses)		Assets Sold During the Period – Realized Gains			Purchases Sales and Settlements			Ending Balance as of December 31, 2010
Other Fixed Income	$	173	$	11	$	1		$	4		$	189
Insurance Contracts		8		—		(1	)		(7	)		—
Total investments	$	181	$	11	$	—		$	(3	)	$	189
Funds for retiree health benefits		28		3		2			(3	)		30
Investments (including funds for retiree health benefits)	$	209	$	14	$	2		$	(6	)	$	219


*(Millions of Dollars)*	Beginning Balance as of January 1, 2009		Assets Still Held at Reporting Date – Unrealized Gains (Losses)			Assets Sold During the Period – Realized Gains			Purchases Sales and Settlements			Ending Balance as of December 31, 2009
Other Fixed Income	$	197	$	11		$	3		$	(38	)	$	173
Insurance Contracts		8		—			—			—			8
Total investments	$	205	$	11		$	3		$	(38	)	$	181
Funds for retiree health benefits		41		(2	)		(6	)		(5	)		28
Investments (including funds for retiree health benefits)	$	246	$	9		$	(3	)	$	(43	)	$	209

Environmental Matters (Tables)

12 Months Ended

Dec. 31, 2010

Accrued Liabilities and Regulatory Assets


	*Con Edison*				*CECONY*
*(Millions of Dollars)*	2010		2009		2010		2009
Accrued Liabilities:
Manufactured gas plant sites	$	446	$	164	$	327	$	112
Other Superfund Sites		66		48		65		47
Total	$	512	$	212	$	392	$	159
Regulatory assets	$	692	$	388	$	571	$	329

Environmental Remediation Costs


	*Con Edison*				*CECONY*
*(Millions of Dollars)*	2010		2009		2010		2009
Remediation costs incurred	$	39	$	77	$	36	$	75
Insurance recoveries received*		1		4		1		4

*	Reduced amount deferred for recovery from customers

Accrued Liabilities for Asbestos Suits and Workers' Compensation Proceedings


	Con Edison				CECONY
*(Millions of Dollars)*	2010		2009		2010		2009
Accrued liability – asbestos suits	$	10	$	10	$	10	$	9
Regulatory assets – asbestos suits	$	10	$	10	$	10	$	9
Accrued liability – workers' compensation	$	106	$	113	$	101	$	108
Regulatory assets – workers' compensation	$	31	$	37	$	31	$	37

Other Material Contingencies (Tables)

12 Months Ended

Dec. 31, 2010

Total Guarantees


Guarantee Type	0 – 3 years		4 – 10 years		> 10 years		Total
	*(Millions of Dollars)*
Commodity transactions	$	543	$	76	$	141	$	760
Affordable housing program		1		—		—		1
Intra-company guarantees		30		—		1		31
Other guarantees		47		20		—		67
TOTAL	$	621	$	96	$	142	$	859

Leases (Tables)

12 Months Ended

Dec. 31, 2010

Schedule of Capital Leases


	Con Edison				CECONY
(Millions of Dollars)	2010		2009		2010		2009
UTILITY PLANT
Transmission	$	2	$	3	$	2	$	3
Common		11		16		11		16
TOTAL	$	13	$	19	$	13	$	19

Schedule of Future Minimum Lease Commitments


*(Millions of Dollars)*	Con Edison		CECONY
2011	$	8	$	8
2012		6		6
2013		—		—
2014		—		—
2015		—		—
All years thereafter		2		2
Total		16		16
Less: amount representing interest		3		3
Present value of net minimum lease payment	$	13	$	13

Schedule of Future Minimum Lease Commitments on Operating Leases


*(Millions of Dollars)*	Con Edison		CECONY
2011	$	46	$	43
2012		47		45
2013		50		47
2014		43		41
2015		12		10
All years thereafter		94		83
Total	$	292	$	269

Income Tax (Tables)

12 Months Ended

Dec. 31, 2010

Components of Income Tax


	Con Edison									CECONY
*(Millions of Dollars)*	2010			2009			2008			2010			2009			2008
State
Current	$	23		$	(12	)	$	53		$	13		$	(1	)	$	7
Deferred – net		106			118			84			100			103			86
Federal
Current		(144	)		16			1			(139	)		42			(110	)
Deferred – net		569			324			392			527			266			420
Amortization of investment tax credits		(6	)		(6	)		(6	)		(6	)		(6	)		(6	)
TOTAL CHARGE TO INCOME TAX EXPENSE	$	548		$	440		$	524		$	495		$	404		$	397

Differences on Deferred Tax Assets and Liabilities


	Con Edison				CECONY
*(Millions of Dollars)*	2010		2009		2010		2009
Deferred tax liabilities:
Depreciation	$	3,019	$	2,569	$	2,851	$	2,426
Regulatory Asset – future income tax		1,760		1,489		1,666		1,404
Unrecognized pension and other postretirement costs		1,775		1,814		1,686		1,727
State income tax		760		645		668		563
Capitalized overheads		508		477		444		419
Other		744		646		519		434
Total deferred tax liabilities		8,566		7,640		7,834		6,973
Deferred tax assets:
Unrecognized pension and other postretirement costs		1,775		1,814		1,686		1,727
Regulatory liability – future income tax		135		172		119		155
State income tax		20		27		15		14
Other		95		84		1		1
Total deferred tax assets		2,025		2,097		1,821		1,897
NET LIABILITIES		6,541		5,543		6,013		5,076
INVESTMENT TAX CREDITS		61		66		58		63
DEFERRED INCOME TAXES AND INVESTMENT TAX CREDITS – Non current	$	6,602	$	5,609	$	6,071	$	5,139
DEFERRED INCOME TAXES – RECOVERABLE ENERGY COSTS – Current		5		12		—		—
TOTAL DEFERRED INCOME TAXES AND INVESTMENT TAX CREDITS	$	6,607	$	5,621	$	6,071	$	5,139

Schedule of Income Tax Reconciliation


	Con Edison									CECONY
*(% of Pre-tax income)*	2010			2009			2008			2010			2009			2008
STATUTORY TAX RATE
Federal		35	%		35	%		35	%		35	%		35	%		35	%
Changes in computed taxes resulting from:
State income tax		5			5			6			5			6			5
Depreciation related differences		—			1			1			—			1			1
Cost of removal		(4	)		(5	)		(5	)		(4	)		(6	)		(6	)
Other		(1	)		(3	)		(1	)		(1	)		(2	)		(2	)
Effective Tax Rate		35	%		33	%		36	%		35	%		34	%		33	%

Summary of Unrecognized Tax Benefits


	Con Edison									CECONY
*(Millions of Dollars)*	2010			2009			2008			2010			2009			2008
Balance at the beginning of the year	$	86		$	118		$	155		$	92		$	108		$	142
Additions based on tax positions related to the current year		5			—			—			4			—			—
Additions based on tax positions of prior years		67			3			—			49			1			—
Reductions for tax positions of prior years		(4	)		(21	)		(14	)		(4	)		(5	)		(13	)
Settlements		(61	)		(14	)		(23	)		(62	)		(12	)		(21	)
Balance at the end of the year	$	93		$	86		$	118		$	79		$	92		$	108

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2010

Summary of Stock-Based Compensation Expense


	Con Edison						CECONY
*(Millions of Dollars)*	2010		2009		2008		2010		2009		2008
Stock options	$	—	$	—	$	1	$	—	$	—	$	1
Restricted stock units		1		1		1		1		1		1
Performance-based restricted stock		27		20		8		25		19		7
Non-officer director deferred stock compensation		1		1		1		1		1		1
Total	$	29	$	22	$	11	$	27	$	21	$	10

Summary of Changes in Stock Options Awarded


	Con Edison				CECONY
	Shares			Weighted Average Exercise Price	Shares			Weighted Average Exercise Price
Outstanding at 12/31/09	5,313,300		$	42.955	4,368,800		$	42.988
Exercised	(2,372,550	)	$	42.175	(1,957,600	)	$	42.173
Forfeited	(5,500	)	$	40.544	(4,500	)	$	42.331
Outstanding at 12/31/10	2,935,250		$	43.588	2,406,700		$	43.652

Summary of Stock Options Outstanding


			Con Edison						CECONY
Plan Year	Remaining Contractual Life		Options Outstanding		Weighted Average Exercise Price		Options Exercisable		Options Outstanding		Weighted Average Exercise Price		Options Exercisable
2006		5		1,167,200	$	45.418		1,167,200		1,000,200	$	45.463		1,000,200
2005		4		641,000		42.729		641,000		508,750		42.696		508,750
2004		3		621,850		43.810		621,850		484,050		43.806		484,050
2003		2		208,600		39.076		208,600		167,100		39.226		167,100
2002		1		199,300		42.510		199,300		166,800		42.510		166,800
2001		1		97,300		37.750		97,300		79,800		37.750		79,800
Total				2,935,250	$	43.588		2,935,250		2,406,700	$	43.652		2,406,700

Assumptions used to Calculate Fair Value


	2010
Risk-free interest rate		0.30% -5.62 %
Expected term		3 years
Expected volatility		21.85%

TSR Portion [Member]

Summary of Changes in the Status of Performance RSU's


	Con Edison					CECONY
	Units			Weighted Average Fair Value*		Units			Weighted Average Fair Value*
Non-vested at 12/31/09		426,686		$	54.316		357,063		$	54.436
Granted		243,750			41.340		197,074			41.340
Vested		(168,511	)		73.035		(139,163	)		72.873
Forfeited		(7,737	)		—		(7,113	)		—
Non-vested at 12/31/10		494,188		$	59.096		407,861		$	59.306

*	Fair value is determined using the Monte Carlo simulation described above. Weighted average fair value at December 31, 2010 and weighted average fair value of Performance RSUs granted do not reflect any accrual or payment of dividends prior to vesting.

EIP Portion [Member]

Summary of Changes in the Status of Performance RSU's


	Con Edison					CECONY
	Units			Weighted Average Fair Value		Units			Weighted Average Fair Value
Non-vested at 12/31/09		426,686		$	45.430		357,063		$	45.430
Granted		243,750			44.540		197,074			44.540
Vested		(168,511	)		55.359		(139,163	)		55.104
Forfeited		(7,737	)		—		(7,113	)		—
Non-vested at 12/31/10		494,188		$	55.226		407,861		$	55.127

Financial Information by Business Segment (Tables)

12 Months Ended

Dec. 31, 2010

Financial Data for the Business Segments


As of and for the Year Ended December 31, 2010 (Millions of Dollars)	Operating revenues			Inter-segment revenues			Depreciation and amortization		Operating income			Interest charges			Income tax expense		Total assets*		Construction expenditures
CECONY
Electric	$	8,376		$	12		$	623	$	1,549		$	424		$	371	$	24,942	$	1,421
Gas		1,541			5			102		310			82			91		5,038		334
Steam		656			74			62		63			43			29		2,455		111
Consolidation adjustments		—			(91	)		—		—			—			—		—		—
Total CECONY	$	10,573		$	—		$	787	$	1,922		$	549		$	491	$	32,435	$	1,866
O&R
Electric	$	692		$	—		$	32	$	74		$	22		$	18	$	1,621	$	99
Gas		218			—			12		34			12			8		684		36
Other*		—			—			—		—			1			—		32		—
Total O&R	$	910		$	—		$	44	$	108		$	35		$	26	$	2,337	$	135
Competitive energy businesses	$	1,883		$	9		$	9	$	97		$	(3	)	$	37	$	807	$	28
Other**		(41	)		(9	)		—		(7	)		28			—		567		—
Total Con Edison	$	13,325		$	—		$	840	$	2,120		$	609		$	554	$	36,146	$	2,029

As of and for the Year Ended December 31, 2009 (Millions of Dollars)	Operating revenues			Inter-segment revenues			Depreciation and amortization		Operating income			Interest charges			Income tax expense		Total assets*		Construction expenditures
CECONY
Electric	$	7,674		$	12		$	587	$	1,368		$	425		$	300	$	23,309	$	1,596
Gas		1,701			5			98		309			82			90		4,796		339
Steam		661			73			59		39			46			12		2,356		122
Consolidation adjustments		—			(90	)		—		—			—			—		—		—
Total CECONY	$	10,036		$	—		$	744	$	1,716		$	553		$	402	$	30,461	$	2,057
O&R
Electric	$	648		$	—		$	30	$	64		$	18		$	15	$	1,525	$	85
Gas		242			—			12		28			9			7		627		42
Other*		—			—			—		—			2			—		35		—
Total O&R	$	890		$	—		$	42	$	92		$	29		$	22	$	2,187	$	127
Competitive energy businesses	$	2,147		$	—		$	5	$	93		$	—		$	31	$	751	$	10
Other**		(41	)		—			—		(3	)		29			—		445		—
Total Con Edison	$	13,032		$	—		$	791	$	1,899		$	611		$	455	$	33,844	$	2,194

As of and for the Year Ended December 31, 2008 (Millions of Dollars)	Operating revenues			Inter-segment revenues			Depreciation and amortization		Operating income			Interest charges			Income tax expense		Total assets*		Construction expenditures
CECONY
Electric	$	7,878		$	12		$	521	$	1,333		$	375		$	295	$	23,181	$	1,743
Gas		1,839			5			90		303			75			91		4,882		338
Steam		707			74			61		31			42			10		2,352		121
Consolidation adjustments		—			(91	)		—		—			—			—		—		—
Total CECONY	$	10,424		$	—		$	672	$	1,667		$	492		$	396	$	30,415	$	2,202
O&R
Electric	$	733		$	—		$	29	$	68		$	18		$	18	$	1,514	$	88
Gas		258			—			11		25			9			6		590		32
Other*		—			—			—		—			1			—		58		—
Total O&R	$	991		$	—		$	40	$	93		$	28		$	24	$	2,162	$	120
Competitive energy businesses	$	2,195		$	(11	)	$	5	$	162		$	(2	)	$	92	$	668	$	4
Other**		(27	)		11			—		(2	)		26			—		253		—
Total Con Edison	$	13,583		$	—		$	717	$	1,920		$	544		$	512	$	33,498	$	2,326

Derivative Instruments and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2010

Energy Price Hedging Fair Values


	Con Edison						CECONY
*(Millions of Dollars)*	2010			2009			2010			2009
Fair value of net derivative assets/(liabilities) – gross	$	(261	)	$	(266	)	$	(156	)	$	(137	)
Impact of netting of cash collateral		176			162			104			87
Fair value of net derivative assets/(liabilities) – net	$	(85	)	$	(104	)	$	(52	)	$	(50	)

Fair Values of the Companies' Commodity Derivatives


Fair Value of Commodity Derivatives(a)
*(Millions of Dollars)*	Balance Sheet Location	Con Edison			CECONY
Derivatives Asset
Current	Other current assets	$	184		$	29
Long term	Other deferred charges and non-current assets		51			19
Total derivatives asset		$	235		$	48
Impact of netting			(129	)		—
Net derivatives asset		$	106		$	48
Derivatives Liability
Current	Fair value of derivative liabilities	$	385		$	—
Current	Other current liabilities		—			148
Long term	Fair value of derivative liabilities		111			56
Total derivatives liability		$	496		$	204
Impact of netting			(305	)		(104	)
Net derivatives liability		$	191		$	100

(a)	Qualifying derivative contracts, which have been designated as normal purchases or normal sales contracts, are not reported at fair value under the accounting rules for derivatives and hedging and, therefore, are excluded from the table.

The fair value of the Companies' commodity derivatives at December 31, 2009 were:


Fair Value of Commodity Derivatives(a)
*(Millions of Dollars)*	Balance Sheet Location	Con Edison			CECONY
Derivatives Asset
Current	Other current assets	$	213		$	40
Long term	Other deferred charges and non-current assets		148			19
Total derivatives asset		$	361		$	59
Impact of netting			(231	)		(20	)
Net derivatives asset		$	130		$	39
Derivatives Liability
Current	Fair value of derivative liabilities	$	401		$	—
Current	Other current liabilities		—			110
Long term	Fair value of derivative liabilities		226			86
Total derivatives liability		$	627		$	196
Impact of netting			(393	)		(107	)
Net derivatives liability		$	234		$	89

(a)	Qualifying derivative contracts, which have been designated as normal purchases or normal sales contracts, are not reported at fair value under the accounting rules for derivatives and hedging and, therefore, are excluded from the table.

Changes in the Fair Values of Commodity Derivatives

The following table presents the changes in the fair values of commodity derivatives that have been deferred or recognized in earnings for the year ended December 31, 2010:


Realized and Unrealized Gains/(Losses) on Commodity Derivatives(a) Deferred or Recognized in Income for the Year Ended December 31, 2010
*(Millions of Dollars)*	Balance Sheet Location		Con Edison			CECONY
Pre-tax gains/(losses) deferred in accordance with accounting rules for regulated operations:
Current		Deferred derivative gains	$	(5	)	$	(5	)
Long-term		Regulatory liabilities		1			1
Total deferred gains			$	(4	)	$	(4	)
Current		Deferred derivative losses	$	(49	)	$	(47	)
Current		Recoverable energy costs		(285	)		(240	)
Long term		Regulatory assets		32			27
Total deferred losses			$	(302	)	$	(260	)
Net deferred losses			$	(306	)	$	(264	)
	Income Statement Location
Pre-tax gain/(loss) recognized in income
		Purchased power expense	$	(173	)(b)	$	—
		Gas purchased for resale		(9	)		—
		Non-utility revenue		26	(b)		—
Total pre-tax gain/(loss) recognized in income			$	(156	)	$	—

(a)	Qualifying derivative contracts, which have been designated as normal purchases or normal sales contracts, are not reported at fair value under the accounting rules for derivatives and hedging and, therefore, are excluded from the table.

(b)	For the year ended December 31, 2010, Con Edison recorded in non-utility operating revenues and purchased power expense an unrealized pre-tax gain/(loss) of $(36) million and $56 million, respectively.

The following table presents the changes in the fair values of commodity derivatives that have been deferred or recognized in earnings for the year ended December 31, 2009:


Realized and Unrealized Gains/(Losses) on Commodity Derivatives(a) Deferred or Recognized in Income for the Year Ended December 31, 2009
*(Millions of Dollars)*	Balance Sheet Location		Con Edison			CECONY
Pre-tax gains/(losses) deferred in accordance with accounting rules for regulated operations:
Current		Deferred derivative gains	$	(15	)	$	(15	)
Total deferred gains			$	(15	)	$	(15	)
Current		Deferred derivative losses	$	147		$	143
Current		Recoverable energy costs		(558	)		(471	)
Long term		Regulatory assets		(15	)		(21	)
Total deferred losses			$	(426	)	$	(349	)
Net deferred losses			$	(441	)	$	(364	)
	Income Statement Location
Pre-tax gain/(loss) recognized in income
		Purchased power expense	$	(562	)(b)	$	—
		Gas purchased for resale		9			—
		Non-utility revenue		30	(b)		—
Total pre-tax gain/(loss) recognized in income			$	(523	)	$	—

(a)	Qualifying derivative contracts, which have been designated as normal purchases or normal sales contracts, are not reported at fair value under the accounting rules for derivatives and hedging and, therefore, are excluded from the table.

(b)	For the year ended December 31, 2009, Con Edison recorded in non-utility operating revenues and purchased power expense an unrealized pre-tax gain/(loss) of $196 million and $(165) million, respectively.

Number of Derivative Contracts by Commodity Type


	Electric Derivatives						Gas Derivatives
	Number of Energy Contracts(a)		MWhs(b)		Number of Capacity Contracts(a)		MWs(b)		Number of Contracts(a)		Dths(b)		Total Number Of Contracts(a)
Con Edison		799		20,569,025		48		10,524		712		136,269,210		1,559
CECONY		161		4,556,675		—		—		536		126,050,000		697

(a)	Qualifying derivative contracts, which have been designated as normal purchases or normal sales contracts, are not reported at fair value under the accounting rules for derivatives and hedging and, therefore, are excluded from the table.

(b)	Volumes are reported net of long and short positions.

Aggregate Fair Value of All Derivative Instruments with Credit Risk Related Contingent Features


*(Millions of Dollars)*	Con Edison(a)			CECONY(a)
Aggregate fair value – net liabilities	$	249		$	124
Collateral posted	$	105		$	78	(b)
Additional collateral(c) (downgrade one level from current ratings(d))	$	58		$	9
Additional collateral(c) (downgrade to below investment grade from current ratings(d))	$	180	(e)	$	55	(e)

(a)

(b)	Across the Utilities' energy derivative positions, credit limits for the same counterparties are generally integrated. At December 31, 2010, the Utilities posted combined collateral of $102 million, including an estimated $24 million attributable to O&R.

(c)

(d)

(e)	Derivative instruments that are net assets have been excluded from the table. At December 31, 2010, if Con Edison had been downgraded to below investment grade, it would have been required to post additional collateral for such derivative instruments of not more than $24 million.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

This element may be used to tag a single block of text that encapsulates the entire credit derivatives disclosure including data and tables. This disclosures provides pertinent information by sellers of credit derivatives, about each credit derivative, or each group of similar credit derivatives, including (a) the nature of the credit derivative - its term, how it arose, the events or circumstances that would require the seller to perform under the credit derivative, and the current status of the payment/performance risk of the credit derivative; (b) the maximum potential amount of future payments (undiscounted) the seller could be required to make under the credit derivative; (c) the current fair value of the credit derivative; and (d) the nature of any recourse provisions under the credit derivative, and any assets held either as collateral or by third parties. A credit derivative is a derivative instrument (1) in which one or more of its underlyings are related to the credit risk of a specified entity (or a group of entities) or an index based on the credit risk of a group of entities and (2) that exposes the seller to potential loss from credit-risk-related events specified in the contract. Examples of credit derivatives within the scope of this paragraph include, but are not limited to, credit default swaps, credit spread options, and credit index products; also includes a hybrid instrument that has an embedded credit derivative (for example, a credit-linked note).

+ References+ Details

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2010

Assets and liabilities measured at fair value on a recurring basis as of December 31, 2010 are summarized below.


	Level 1				Level 2						Level 3						Netting Adjustments (4)						Total
(Millions of Dollars)	Con Edison		CECONY		Con Edison			CECONY			Con Edison			CECONY			Con Edison			CECONY			Con Edison			CECONY
Derivative assets:
Commodity(1)	$	2	$	1	$	72		$	21		$	144		$	13		$	(112	)	$	13		$	106		$	48
Other assets(3)		65		64		—			—			101			92			—			—			166			156
Total	$	67	$	65	$	72		$	21		$	245		$	105		$	(112	)	$	13		$	272		$	204
Derivative liabilities:
Commodity	$	4	$	2	$	270		$	177		$	205		$	12		$	(288	)	$	(91	)	$	191		$	100
Transfer in(5)(6)(7)		—		—		(36	)		(36	)		(9	)		(9	)		—			—			(45	)		(45	)
Transfer out(5)(6)(7)		—		—		9			9			36			36			—			—			45			45
Commodity(1)	$	4	$	2	$	243		$	150			232			39		$	(288	)	$	(91	)	$	191		$	100
Interest rate contract(2)		—		—		—			—			10			—			—			—			10			—
Total	$	4	$	2	$	243		$	150		$	242		$	39		$	(288	)	$	(91	)	$	201		$	100

(1)

(2)	See Note O.

(3)	Other assets are comprised of assets such as life insurance contracts within the Deferred Income Plan and Supplemental Retirement Income Plans, held in rabbi trusts.

(4)	Amounts represent the impact of legally-enforceable master netting agreements that allow the Companies to net gain and loss positions and cash collateral held or placed with the same counterparties.

(5)	The Companies' policy is to recognize transfers into and transfers out of the levels at the end of the reporting period.

(6)	Transferred from Level 2 to Level 3 because of reassessment of the levels in the fair value hierarchy within which certain inputs fall.

(7)	Transferred from Level 3 to Level 2 because of availability of observable market data due to decrease in the terms of certain contracts from beyond one year as of December 31, 2009 to less than one year as of December 31, 2010.

Assets and liabilities measured at fair value on a recurring basis as of December 31, 2009 are summarized below.


	Level 1				Level 2				Level 3				Netting Adjustments(4)						Total
*(Millions of Dollars)*	Con Edison		CECONY		Con Edison		CECONY		Con Edison		CECONY		Con Edison			CECONY			Con Edison		CECONY
Derivative assets:
Commodity (1)	$	3	$	3	$	92	$	21	$	201	$	17	$	(166	)	$	(2	)	$	130	$	39
Other assets (3)		36		36		—		—		92		83		—			—			128		119
Total	$	39	$	39	$	92	$	21	$	293	$	100	$	(166	)	$	(2	)	$	258	$	158
Derivative liabilities:
Commodity (1)	$	6	$	1	$	296	$	155	$	260	$	22	$	(328	)	$	(89	)	$	234	$	89
Interest rate contract (2)		—		—		—		—		11		—		—			—			11		—
Total	$	6	$	1	$	296	$	155	$	271	$	22	$	(328	)	$	(89	)	$	245	$	89

(1)

(2)	See Note O.

(3)	Other assets are comprised of assets such as life insurance contracts within the Deferred Income Plan and Supplemental Retirement Income Plans, held in rabbi trusts.

(4)	Amounts represent the impact of legally-enforceable master netting agreements that allow the Companies to net gain and loss positions and cash collateral held or placed with the same counterparties.

Reconciliation of the Beginning and Ending Net Balances for Assets and Liabilities Measured at Level 3 Fair Value


	For the Year Ended December 31, 2010
*(Millions of Dollars)*	Beginning Balance as of January 1, 2010			Total Gains/(Losses) – Realized and Unrealized						Purchases, Issuances, Sales and Settlements		Transfer In/Out of Level 3		Ending Balance as of December 31, 2010
*(Millions of Dollars)*	Beginning Balance as of January 1, 2010			Included in Earnings			Included in Regulatory Assets and Liabilities			Purchases, Issuances, Sales and Settlements		Transfer In/Out of Level 3		Ending Balance as of December 31, 2010
Con Edison
Derivatives:
Commodity	$	(59	)	$	(73	)	$	(37	)	$	54	$	27	$	(88	)
Interest rate contract		(11	)		(3	)		1			3		—		(10	)
Other assets(1)		92			3			6			—		—		101
Total	$	22		$	(73	)	$	(30	)	$	57	$	27	$	3
CECONY
Derivatives:
Commodity	$	(5	)	$	(14	)	$	(44	)	$	10	$	27	$	(26	)
Other assets(1)		83			3			6			—		—		92
Total	$	78		$	(11	)	$	(38	)	$	10	$	27	$	66

(1)	Amounts included in earnings are reported in investment and other income on the consolidated income statement.


	For the Year Ended December 31, 2009
*(Millions of Dollars)*				Total Gains/(Losses) – Realized and Unrealized								Transfer In/Out of Level 3		Ending Balance as of December 31, 2009
*(Millions of Dollars)*	Beginning Balance as of January 1, 2009			Included in Earnings			Included in Regulatory Assets and Liabilities			Purchases, Issuances, Sales and Settlements		Transfer In/Out of Level 3		Ending Balance as of December 31, 2009
Con Edison
Derivatives:
Commodity	$	(50	)	$	(249	)	$	(23	)	$	263	$	—	$	(59	)
Interest rate contract		(15	)		(3	)		4			3		—		(11	)
Other assets(1)		73			7			12			—		—		92
Total	$	8		$	(245	)	$	(7	)	$	266	$	—	$	22
CECONY
Derivatives:
Commodity	$	1		$	(23	)	$	(20	)	$	37	$	—	$	(5	)
Other assets(1)		65			7			11			—		—		83
Total	$	66		$	(16	)	$	(9	)	$	37	$	—	$	78

(1)	Amounts included in earnings are reported in investment and other income on the consolidated income statement.

Schedule I Condensed Financial Information (Tables)

12 Months Ended

Dec. 31, 2010

Schedule of Condensed Income Statement


	2010			2009			2008
	(Millions of Dollars, except per share amounts)
Equity in earnings of subsidiaries	$	1,008		$	883		$	900
Other income (deductions), net of taxes		12			14			48
Interest expense		(28	)		(29	)		(26	)
Income From Continuing Operations		992			868			922
Income from Discontinued Operations (Net of Tax Expense of $177 in 2008)		—			—			274
Net Income for Common Stock	$	992		$	868		$	1,196
Earnings Per Common Share – Basic
Continuing operations	$	3.49		$	3.16		$	3.37
Discontinued operations		—			—			1.01
Net Income Per Common Share – Basic	$	3.49		$	3.16		$	4.38
Earnings Per Common Share – Diluted
Continuing operations	$	3.47		$	3.14		$	3.36
Discontinued operations		—			—			1.01
Net Income Per Common Share – Diluted	$	3.47		$	3.14		$	4.37
Dividends Declared Per Share Of Common Stock	$	2.38		$	2.36		$	2.34
Average Number Of Shares Outstanding – Basic (In Millions)		284.3			275.2			272.9
Average Number Of Shares Outstanding – Diluted (In Millions)		285.9			276.3			273.6

*	These financial statements, in which Con Edison's subsidiaries have been included using the equity method, should be read together with its consolidated financial statements and the notes thereto appearing above.

Schedule of Condensed Statement of Cash Flows


	2010			2009			2008
	*(Millions of Dollars)*
Net Income	$	992		$	868		$	1,196
Equity in earnings of subsidiaries		(1,008	)		(883	)		(1,174	)
Dividends received from:
CECONY		670			652			618
O&R		32			32			31
Competitive energy businesses		8			8			12
Other – net		(4	)		85			(462	)
Net Cash Flows From Operating Activities		690			762			221
INVESTING ACTIVITIES
Contributions to subsidiaries		(355	)		(241	)		(791	)
Proceeds from sale of subsidiaries		—			—			1,461
Net Cash Flows (Used In)/From Investing Activities		(355	)		(241	)		670
FINANCING ACTIVITIES
Net payments of short-term debt		—			(110	)		(130	)
Retirement of long-term debt		(3	)		(4	)		(200	)
Common shares issued		439			257			42
Common stock dividends		(629	)		(601	)		(618	)
Net Cash Flows Used In Financing Activities		(192	)		(458	)		(906	)
Net Change For The Period		142			63			(15	)
Balance At Beginning Of Period		80			17			32
Balance At End Of Period	$	222		$	80		$	17

*	These financial statements, in which Con Edison's subsidiaries have been included using the equity method, should be read together with its consolidated financial statements and the notes thereto appearing above.

Schedule of Condensed Balance Sheet


	At December 31,
	2010		2009
	*(Millions of Dollars)*
ASSETS
CURRENT ASSETS
Cash and temporary cash investments	$	222	$	80
Accounts receivable – other		123		79
Accounts receivable from affiliated companies		—		1
Prepayments		240		32
Other current assets		50		158
Total Current Assets		635		350
Investments in subsidiaries and others		11,807		11,152
Goodwill		406		406
Federal income tax due from taxing authority		1		1
Deferred income tax		38		22
Other assets		4		10
Total Assets	$	12,891	$	11,941
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Long-term debt due within one year	$	1	$	3
Accounts payable		7		8
Accounts payable from affiliated companies		176		—
Other current liabilities		312		309
Total Current Liabilities		496		320
Noncurrent Liabilities		—		36
Total Liabilities		503		356
LONG-TERM DEBT		314		316
SHAREHOLDERS' EQUITY
Common stock		4,900		4,404
Retained earnings		7,181		6,865
Total Shareholders' Equity		12,081		11,269
Total Liabilities And Shareholders' Equity	$	12,891	$	11,941

*	These financial statements, in which Con Edison's subsidiaries have been included using the equity method, should be read together with its consolidated financial statements and the notes thereto appearing above.

Summary of Significant Accounting Policies (Narrative) (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2008	Dec. 31, 2009
Annual depreciation allowance	$ 838
Estimated useful lives, minimum	3
Estimated useful lives, maximum	30
Equity Method Investment, other than temporary impairment		2
Unbilled revenues	633		579
Investment gains and losses recognized, time period, years	15
Investment gains and losses recognized, time period, years	10
Calculation of market related value of plan assets	The Companies use a calculated value when determining the MRV of the plan assets that adjusts for 20 percent of the difference between fair value and expected MRV of plan assets.
Difference between fair value and expected Market Related Value of plan assets	20.00%
Asset impairment charges	0
Michigan [Member]
Equity Method Investment, electric generating plant, MW's		29
Guatemala [Member]
Electric generating plant			$ 5

Summary of Significant Accounting Policies (Capitalized Cost of Utility Plant) (Details) (USD $)
In Millions, unless otherwise specified

Dec. 31, 2010

Dec. 31, 2009

Construction work in progress

$ 23,794

$ 22,439

Held for future use

1,458

1,421

Electric Generation [Member]

396

392

Electric Transmission [Member]

2,284

2,090

Electric Distribution [Member]

13,191

12,442

Gas [Member]

3,535

^[1]

3,226

^[1]

Steam [Member]

1,617

1,555

General [Member]

$ 1,241

$ 1,231

[1]	Primarily distribution.

Summary of Significant Accounting Policies (Research and Development Costs) (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Con Edison	$ 23	$ 27	$ 29

The aggregate costs incurred (1) in a planned search or critical investigation aimed at discovery of new knowledge with the hope that such knowledge will be useful in developing a new product or service, a new process or technique, or in bringing about a significant improvement to an existing product or process; or (2) to translate research findings or other knowledge into a plan or design for a new product or process or for a significant improvement to an existing product or process whether intended for sale or the entity's use, during the reporting period charged to research and development projects, including the costs of developing computer software up to the point in time of achieving technological feasibility, and costs allocated in accounting for a business combination to in-process projects deemed to have no alternative future use.

+ References+ Details

Summary of Significant Accounting Policies (Earnings Per Common Share) (Details) (CONSOLIDATED EDISON INC [Member], USD $) In Millions, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
CONSOLIDATED EDISON INC [Member]
Income for common stock from continuing operations	$ 992	$ 868	$ 922
Income for common stock from discontinued operations, net of tax			274
Net income for common stock	$ 992	$ 868	$ 1,196
Weighted average common shares outstanding - Basic	284.3	275.2	272.9
Add: Incremental shares attributable to effect of potentially dilutive securities	1.6	1.1	0.7
Adjusted weighted average common shares outstanding - Diluted	285.9	276.3	273.6
Continuing operations - Basic	$ 3.49	$ 3.16	$ 3.37
Discontinued operations - Basic			$ 1.01
Net income for Common stock, Basic	$ 3.49	$ 3.16	$ 4.38
Continuing operations	$ 3.47	$ 3.14	$ 3.36
Discontinued operations			$ 1.01
Net Income Per Common Share - Diluted	$ 3.47	$ 3.14	$ 4.37

Regulatory Matters (Regulatory Assets and Liabilities) (Details) (USD $) In Millions, unless otherwise specified	Dec. 31, 2010	Dec. 31, 2009
Regulatory assets	$ 7,643	$ 7,103
Regulatory assets - current	203	172
Total Regulatory Assets	7,846	7,275
Regulatory liabilities	915	829
Total Regulatory Liabilities	919	838
Unrecognized Pension and Other Postretirement Costs [Member]
Regulatory assets	4,371	4,472
Future Federal Income Tax [Member]
Regulatory assets	1,593	1,316
Environmental Remediation Costs [Member]
Regulatory assets	695	392
Net Electric Deferrals [Member]
Regulatory assets	156	82
Surcharge for New York State Assessment [Member]
Regulatory assets	121	138
Deferred Derivative Losses - Long-Term [Member]
Regulatory assets	74	106
Revenue Taxes [Member]
Regulatory assets	145	120
Pension and Other Postretirement Benefits Deferrals [Member]
Regulatory assets	138	101
Deferred Storm Costs [Member]
Regulatory assets	57	5
Property Tax Reconciliation [Member]
Regulatory assets	34	85
O and R Transition Bond Charges [Member]
Regulatory assets	48	55
World Trade Center Restoration Costs [Member]
Regulatory assets	45	41
Workers' Compensation [Member]
Regulatory assets	31	37
Other [Member]
Regulatory assets	135	153
Deferred Derivative Losses - Current [Member]
Regulatory assets - current	190	141
Recoverable Energy Costs - Current [Member]
Regulatory assets - current	13	31
Allowance for Cost of Removal Less Salvage [Member]
Regulatory liabilities	422	371
Refundable Energy Costs [Member]
Regulatory liabilities	80	118
Net Unbilled Revenue Deferrals [Member]
Regulatory liabilities	136	91
Revenue Decoupling Mechanism [Member]
Regulatory liabilities	32
New York State Tax Refund [Member]
Regulatory liabilities	30
2005-2008 Capital Expenditure Reserve [Member]
Regulatory liabilities		24
Gain on Sale of Properties [Member]
Regulatory liabilities	29	24
Rate Case Amortizations [Member]
Regulatory liabilities		21
Electric Rate Case Deferral [Member]
Regulatory liabilities		19
Other Liabilities [Member]
Regulatory liabilities	186	161
Deferred Derivative Gains - Current [Member]
Regulatory liability - current	$ 4	$ 9

Capitalization (Narrative) (Details) (USD $) In Millions, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2010 Transition Bonds, Issued 2004 [Member]	Dec. 31, 2009 Transition Bonds, Issued 2004 [Member]
Common stock, shares, outstanding	21,976,200
Percentage limitation for income available for dividends	100.00%
Rolling average calculation of income available for dividends	2
Tax exempt debt issued	$ 269
TOTAL		32	34
Debt instrument, covenant description	Con Edison's ratio of consolidated debt to consolidated capital to exceed 0.675 to 1.
Covenant principal balance amount limit	$ 100

Capitalization (Schedule of Long-Term Debt) (Details) (USD $) In Millions, unless otherwise specified	Dec. 31, 2010
Capitalization
2011	$ 5
2012	305
2013	706
2014	481
2015	$ 495

Capitalization (Fair Value of Long-term Debt) (Details) (CONSOLIDATED EDISON INC [Member], USD $) In Millions, unless otherwise specified	Dec. 31, 2010	Dec. 31, 2009
CONSOLIDATED EDISON INC [Member]
Long-term, Carrying amount	$ 10,676	$ 10,585
Long-term, Fair value	$ 11,795	$ 11,009

Short-Term Borrowing (Narrative) (Details) (USD $)	12 Months Ended
Short-Term Borrowing (Narrative) (Details) (USD $)	Dec. 31, 2010	Dec. 31, 2011	Dec. 31, 2009
Maximum amount of borrowing	$ 2,250,000,000	$ 2,200,000,000
Current amount available	1,000,000,000
Commercial paper outstanding	0		0
Line of credit facility, covenant terms	ratio of consolidated debt to consolidated total capital of 0.65 to 1 (at December 31, 2010, this ratio was 0.49 to 1 for both Con Edison and CECONY); having liens on its assets in an aggregate amount exceeding 5 percent of its consolidated total capital, subject to certain exceptions; and the failure by the company, following any applicable notice period, to meet certain other customary covenants.
Letters of credit outstanding under the credit agreement	$ 197,000,000		$ 193,000,000

Pension Benefits (Narrative) (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2011	Dec. 31, 2008
Regulatory assets	$ 7,846	$ 7,275
Pension Benefits [Member]
Pension liability	55
Credit to OCI	3
Net loss estimated to be amortized	536
Prior service cost estimated to be amortized	8
Investments value	119	85
Accumulated benefit obligation	9,319	8,598		8,559
Assumptions used in calculating net periodic benefit cost	To determine the assumed discount rate, the Companies use a model that produces a yield curve based on yields on selected highly rated (Aaa or Aa, by Moody's Investors Service) corporate bonds. Bonds with insufficient liquidity, bonds with questionable pricing information and bonds that are not representative of the overall market are excluded from consideration. For example, the bonds used in the model cannot be callable, they must have a price between 50 and 200, the yield must lie between 1 percent and 20 percent, and the amount of the issue must be in excess of $100 million. The spot rates defined by the yield curve and the plan's projected benefit payments are used to develop a weighted average discount rate.
Estimated future employer contributions			543
Other Nonqualified Supplemental Defined Benefit Pension [Member] \| Pension Benefits [Member]
Accumulated benefit obligation	$ 192	$ 175

Service cost - excluding administrative expenses

The cost of benefit improvement resulting from a plan amendment that occurred during the period, after tax. The cost has not been recognized in net periodic benefit cost pursuant to FAS 87 and 106. A plan amendment includes provisions that grant increased benefits based on services rendered in prior periods.

+ References+ Details

Pension Benefits (Companies' Net Periodic Benefit Costs) (Details) (Pension Benefits [Member], USD $)
In Millions, unless otherwise specified

12 Months Ended

Dec. 31, 2010

Dec. 31, 2009

Dec. 31, 2008

Pension Benefits [Member]

$ 168

$ 159

$ 139

Interest cost on projected benefit obligation

556

525

515

Expected return on plan assets

(704)

(691)

Amortization of net actuarial loss

425

299

192

Amortization of prior service cost

NET PERIODIC BENEFIT COST

453

300

163

Amortization of regulatory asset

^[1]

TOTAL PERIODIC BENEFIT COST

455

303

167

Cost capitalized

(157)

(109)

(59)

Cost deferred

(115)

(38)

(40)

Cost charged (credited) to operating expenses

$ 183

$ 156

$ 68

[1]	Relates to increases in CECONY's pension obligations of $33 million from a 1993 special retirement program and $45 million from a 1999 special retirement program.

Pension Benefits (Funded Status) (Details) (Pension Benefits [Member], USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Pension Benefits [Member]
Projected benefit obligation at beginning of year	$ 9,408	$ 9,383	$ 8,696
Service cost - excluding administrative expenses	160	158	137
Interest cost on projected benefit obligation	556	525	515
Plan amendments	6	5
Net actuarial (gain)/loss	636	(215)	468
Benefits paid	(459)	(448)	(433)
PROJECTED BENEFIT OBLIGATION AT END OF YEAR	10,307	9,408	9,383
Fair value of plan assets at beginning of year	6,877	5,836	8,400
Actual return on plan assets	888	1,220	(2,263)
Employer contributions	443	291	154
Administrative expenses	(28)	(22)	(22)
FAIR VALUE OF PLAN ASSETS AT END OF YEAR	7,721	6,877	5,836
FUNDED STATUS	(2,586)	(2,531)	(3,547)
Unrecognized net loss	3,915	3,868	4,890
Unrecognized prior service costs	38	40	44
Accumulated benefit obligation	$ 9,319	$ 8,598	$ 8,559

Pension Benefits (Actuarial Assumptions) (Details) (Pension Benefits [Member])	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Pension Benefits [Member]
Discount rate	5.60%	6.05%	5.75%
Discount rate, net periodic benefit	6.05%	5.75%	6.00%
Expected return on plan assets	8.50%	8.50%	8.50%

Pension Benefits (Expected Benefit Payments) (Details) (Pension Benefits [Member], USD $) In Millions, unless otherwise specified	Dec. 31, 2010
Pension Benefits [Member]
2011	$ 501
2012	528
2013	554
2014	580
2015	605
2016-2020	$ 3,376

Pension Benefits (Plan Asset Allocations) (Details) (Pension Benefits [Member])	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Pension Benefits [Member]
Equity Securities, Target Allocation, Minimum	57.00%
Equity Securities, Target Allocation, Maximum	73.00%
Plan Assets, Equity Securities		67.00%	67.00%	59.00%
Debt Securities, Target Allocation, Minimum	21.00%
Debt Securities, Target Allocation, Maximum	33.00%
Plan Assets, Debt Securities		28.00%	28.00%	33.00%
Real Estate, Target Allocation, Minimum	5.00%
Real Estate, Target Allocation, Maximum	11.00%
Plan Assets, Real Estate		5.00%	5.00%	8.00%
Total	100.00%
Total		100.00%	100.00%	100.00%

Pension Benefits (Fair Value of Plan Assets) (Details) (USD $)
In Millions, unless otherwise specified

12 Months Ended

Dec. 31, 2010

Dec. 31, 2009

Dec. 31, 2008

Dec. 31, 2007

U.S. Equity [Member]

$ 1

International Equity [Member]

Corporate Bonds [Member]

143

172

Structured Assets [Member]

194

Other Fixed Income [Member]

Swaps [Member]

(3)

(32)

Real Estate [Member]

344

515

Pension Benefits [Member]

8,235

7,466

Investments (excluding funds for retiree health benefits)

(359)

^[1]

(334)

^[1]

7,876

7,132

(155)

^[2]

(255)

^[3]

7,721

6,877

5,836

8,400

Pension Benefits [Member] | Fair Value, Inputs, Level 1 [Member]

5,187

4,807

Investments (excluding funds for retiree health benefits)

(226)

^[1]

(215)

^[1]

4,961

4,592

^[2]

^[3]

Pension Benefits [Member] | Fair Value, Inputs, Level 2 [Member]

2,368

2,037

Investments (excluding funds for retiree health benefits)

(103)

^[1]

(91)

^[1]

2,265

1,946

^[2]

^[3]

Pension Benefits [Member] | Fair Value, Inputs, Level 3 [Member]

680

622

Investments (excluding funds for retiree health benefits)

(30)

^[1]

(28)

^[1]

650

594

^[2]

^[3]

Pension Benefits [Member] | U.S. Equity [Member]

3,935

^[4]

3,470

^[4]

Pension Benefits [Member] | U.S. Equity [Member] | Fair Value, Inputs, Level 1 [Member]

3,935

^[4]

3,470

^[4]

Pension Benefits [Member] | U.S. Equity [Member] | Fair Value, Inputs, Level 2 [Member]

^[4]

Pension Benefits [Member] | U.S. Equity [Member] | Fair Value, Inputs, Level 3 [Member]

^[4]

Pension Benefits [Member] | International Equity [Member]

1,483

^[5]

1,337

^[5]

Pension Benefits [Member] | International Equity [Member] | Fair Value, Inputs, Level 1 [Member]

1,249

^[5]

1,140

^[5]

Pension Benefits [Member] | International Equity [Member] | Fair Value, Inputs, Level 2 [Member]

234

^[5]

196

^[5]

Pension Benefits [Member] | International Equity [Member] | Fair Value, Inputs, Level 3 [Member]

^[5]

Pension Benefits [Member] | U.S. Government Issues [Member]

1,300

^[6]

1,255

^[6]

Pension Benefits [Member] | U.S. Government Issues [Member] | Fair Value, Inputs, Level 1 [Member]

^[6]

Pension Benefits [Member] | U.S. Government Issues [Member] | Fair Value, Inputs, Level 2 [Member]

1,300

^[6]

1,255

^[6]

Pension Benefits [Member] | U.S. Government Issues [Member] | Fair Value, Inputs, Level 3 [Member]

^[6]

Pension Benefits [Member] | Corporate Bonds [Member]

700

^[7]

578

^[7]

129

143

Pension Benefits [Member] | Corporate Bonds [Member] | Fair Value, Inputs, Level 1 [Member]

^[7]

Pension Benefits [Member] | Corporate Bonds [Member] | Fair Value, Inputs, Level 2 [Member]

571

^[7]

435

^[7]

Pension Benefits [Member] | Corporate Bonds [Member] | Fair Value, Inputs, Level 3 [Member]

129

^[7]

143

^[7]

Pension Benefits [Member] | Structured Assets [Member]

^[8]

Pension Benefits [Member] | Structured Assets [Member] | Fair Value, Inputs, Level 1 [Member]

^[8]

Pension Benefits [Member] | Structured Assets [Member] | Fair Value, Inputs, Level 2 [Member]

^[8]

Pension Benefits [Member] | Structured Assets [Member] | Fair Value, Inputs, Level 3 [Member]

^[8]

Pension Benefits [Member] | Other Fixed Income [Member]

^[9]

Pension Benefits [Member] | Other Fixed Income [Member] | Fair Value, Inputs, Level 1 [Member]

^[9]

Pension Benefits [Member] | Other Fixed Income [Member] | Fair Value, Inputs, Level 2 [Member]

^[9]

Pension Benefits [Member] | Other Fixed Income [Member] | Fair Value, Inputs, Level 3 [Member]

^[9]

Pension Benefits [Member] | Swaps [Member]

(3)

^[10]

(3)

Pension Benefits [Member] | Swaps [Member] | Fair Value, Inputs, Level 1 [Member]

^[10]

Pension Benefits [Member] | Swaps [Member] | Fair Value, Inputs, Level 2 [Member]

^[10]

Pension Benefits [Member] | Swaps [Member] | Fair Value, Inputs, Level 3 [Member]

(3)

^[10]

Pension Benefits [Member] | Real Estate [Member]

398

^[11]

344

^[11]

398

344

Pension Benefits [Member] | Real Estate [Member] | Fair Value, Inputs, Level 1 [Member]

^[11]

Pension Benefits [Member] | Real Estate [Member] | Fair Value, Inputs, Level 2 [Member]

^[11]

Pension Benefits [Member] | Real Estate [Member] | Fair Value, Inputs, Level 3 [Member]

398

^[11]

344

^[11]

Pension Benefits [Member] | Cash and Cash Equivalents [Member]

235

^[12]

338

^[12]

Pension Benefits [Member] | Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 1 [Member]

^[12]

197

^[12]

Pension Benefits [Member] | Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 2 [Member]

232

^[12]

141

^[12]

Pension Benefits [Member] | Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 3 [Member]

^[12]

[1]	The Companies set aside funds for retiree health benefits through a separate account within the pension trust, as permitted under Section 401(h) of the Internal Revenue Code of 1986, as amended. In accordance with the Code, the plan's investments in the 401(h) account may not be used for, or diverted to, any purpose other than providing health benefits for retirees. The net assets held in the 401(h) account are calculated based on a pro-rata percentage allocation of the net assets in the pension plan. The related obligations for health benefits are not included in the pension plan's obligations and are included in the Companies' other postretirement benefit obligation. See Note F.
[2]	Pending activities include security purchases and sales that have not settled, interest and dividends that have not been received and reflects adjustments for available estimates at year end.
[3]	Pending activities include security purchases and sales that have not settled and interest and dividends that have not been received.
[4]	U.S. Equity includes both actively- and passively-managed assets with investments in domestic equity index funds, actively-managed small-capitalization equities, rights and warrants.
[5]	International Equity includes international equity index funds, actively-managed international equities, rights and warrants.
[6]	U.S. Government Issues include agency and treasury securities.
[7]	Corporate Bonds held in institutional mutual funds which are measured at Net Asset Value (NAV) are classified as Level 3.
[8]	Structured Assets are measured using broker quotes and investment manager proprietary models and include commercial-mortgage-backed securities, collateralized mortgage obligations and asset-backed securities.
[9]	Other Fixed Income includes emerging market debt valued using broker quotes, municipal bonds, sovereign debt, regional governments and government agencies.
[10]	Swaps include total return swaps, interest rate swaps, credit default swaps and swap collateral. Level 3 Swaps are valued using proprietary investment manager models.
[11]	Real Estate investments include real estate funds based on appraised values that are broadly diversified by geography and property type.
[12]	Cash and Cash Equivalents include short term investments, money markets and foreign currency.

Pension Benefits (Reconciliation of Net Balances) (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended		12 Months Ended		12 Months Ended		12 Months Ended		12 Months Ended		12 Months Ended		12 Months Ended		12 Months Ended		12 Months Ended		12 Months Ended		12 Months Ended						12 Months Ended		12 Months Ended		12 Months Ended		12 Months Ended		12 Months Ended		12 Months Ended		12 Months Ended		12 Months Ended		12 Months Ended		12 Months Ended
	Dec. 31, 2009 U.S. Equity [Member]	Dec. 31, 2008 U.S. Equity [Member]	Dec. 31, 2009 International Equity [Member]	Dec. 31, 2008 International Equity [Member]	Dec. 31, 2009 Corporate Bonds [Member]	Dec. 31, 2008 Corporate Bonds [Member]	Dec. 31, 2009 Structured Assets [Member]	Dec. 31, 2008 Structured Assets [Member]	Dec. 31, 2009 Other Fixed Income [Member]	Dec. 31, 2008 Other Fixed Income [Member]	Dec. 31, 2009 Swaps [Member]	Dec. 31, 2008 Swaps [Member]	Dec. 31, 2009 Options [Member]	Dec. 31, 2008 Options [Member]	Dec. 31, 2009 Real Estate [Member]	Dec. 31, 2008 Real Estate [Member]	Dec. 31, 2009 Investments [Member]	Dec. 31, 2008 Investments [Member]	Dec. 31, 2009 Funds for Retiree Health Benefits [Member]	Dec. 31, 2008 Funds for Retiree Health Benefits [Member]	Dec. 31, 2009 Investments (excluding funds for retiree health benefits) [Member]	Dec. 31, 2008 Investments (excluding funds for retiree health benefits) [Member]	Dec. 31, 2010 Pension Benefits [Member]	Dec. 31, 2009 Pension Benefits [Member]	Dec. 31, 2008 Pension Benefits [Member]	Dec. 31, 2007 Pension Benefits [Member]	Dec. 31, 2010 Pension Benefits [Member] U.S. Equity [Member]	Dec. 31, 2009 Pension Benefits [Member] U.S. Equity [Member]	Dec. 31, 2010 Pension Benefits [Member] International Equity [Member]	Dec. 31, 2009 Pension Benefits [Member] International Equity [Member]	Dec. 31, 2010 Pension Benefits [Member] Corporate Bonds [Member]	Dec. 31, 2009 Pension Benefits [Member] Corporate Bonds [Member]	Dec. 31, 2010 Pension Benefits [Member] Structured Assets [Member]	Dec. 31, 2009 Pension Benefits [Member] Structured Assets [Member]	Dec. 31, 2010 Pension Benefits [Member] Other Fixed Income [Member]	Dec. 31, 2009 Pension Benefits [Member] Other Fixed Income [Member]	Dec. 31, 2010 Pension Benefits [Member] Swaps [Member]	Dec. 31, 2009 Pension Benefits [Member] Swaps [Member]	Dec. 31, 2010 Pension Benefits [Member] Real Estate [Member]	Dec. 31, 2009 Pension Benefits [Member] Real Estate [Member]	Dec. 31, 2010 Pension Benefits [Member] Investments [Member]	Dec. 31, 2009 Pension Benefits [Member] Investments [Member]	Dec. 31, 2010 Pension Benefits [Member] Funds for Retiree Health Benefits [Member]	Dec. 31, 2009 Pension Benefits [Member] Funds for Retiree Health Benefits [Member]	Dec. 31, 2010 Pension Benefits [Member] Investments (excluding funds for retiree health benefits) [Member]	Dec. 31, 2009 Pension Benefits [Member] Investments (excluding funds for retiree health benefits) [Member]
Beginning Balance as of January 1		$ 1	$ 1		$ 143	$ 172	$ 91	$ 194	$ 46	$ 52	$ (3)	$ (32)		$ 5	$ 344	$ 515	$ 622	$ 907	$ (28)	$ (41)	$ 594	$ 866	$ 7,721	$ 6,877	$ 5,836	$ 8,400				$ 1	$ 129	$ 143	$ 87	$ 91	$ 66	$ 46		$ (3)	$ 398	$ 344	$ 680	$ 622	$ (30)	$ (28)	$ 650	$ 594
Assets Still Held at Reporting Date - Unrealized Gains (Losses)	2				35		93		2		13		(4)		(177)		(36)		2		(34)								1		(3)		15				2		47		62		(3)		59
Assets Sold During the Period - Realized Gains	(2)				(7)		(70)		1		(51)		4				(125)		6		(119)								(1)		9		(6)		2		(1)				3		(2)		1
Purchases, Sales and Settlements	(1)		1		(57)		(126)		(9)		67		(5)		6		(124)		5		(119)								(1)		(20)		(13)		18		2		7		(7)		3		(4)
Ending Balance as of December 31		$ 1	$ 1		$ 143	$ 172	$ 91	$ 194	$ 46	$ 52	$ (3)	$ (32)		$ 5	$ 344	$ 515	$ 622	$ 907	$ (28)	$ (41)	$ 594	$ 866	$ 7,721	$ 6,877	$ 5,836	$ 8,400				$ 1	$ 129	$ 143	$ 87	$ 91	$ 66	$ 46		$ (3)	$ 398	$ 344	$ 680	$ 622	$ (30)	$ (28)	$ 650	$ 594

Other Postretirement Benefits (Narrative) (Details) (USD $) In Millions, unless otherwise specified			12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2010 Other Postretirement Benefit Plans, Defined Benefit [Member]
Pension liability			$ 131
Regulatory Assets	7,846	7,275	151
Credit to OCI			1
Net loss estimated to be amortized			92
Prior service cost estimated to be amortized			(10)
Amortization of transition obligation			4
Health care cost trend rate for net periodic benefit cost, current			6.50%
Health care cost trend rate for net periodic benefit cost			4.50%
Year for final trend rate for net periodic benefit cost			2014
Health care cost trend rate for benefit obligations, current			6.00%
Health care cost trend rate for benefit obligations			4.50%
Year for final trend rate for benefit obligations			2014
Expected contributions			$ 93
Effect of Medicare Prescription Benefit			Effect of Medicare Prescription Benefit The Medicare Prescription Drug, Improvement and Modernization Act of 2003 created a benefit for certain employers who provide postretirement drug programs. The accounting rules for retirement benefits provide accounting and disclosure requirements relating to the Act. The Companies' actuaries have determined that each of their prescription drug plans provides a benefit that is at least actuarially equivalent to the Medicare prescription drug plan and projections indicate that this will be the case for 20 years; therefore, the Companies are eligible to receive the benefit that the Act makes available. When the plans' benefits are no longer actuarially equivalent to the Medicare plan, 25 percent of the retirees in each plan are assumed to begin to decline participation in the Companies' prescription programs.

Other Postretirement Benefits (Companies Net Periodic Postretirement Benefit Costs) (Details) (Other Postretirement Benefit Plans, Defined Benefit [Member], USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Other Postretirement Benefit Plans, Defined Benefit [Member]
Service cost	$ 24	$ 22	$ 20
Interest cost on accumulated other postretirement benefit obligation	91	95	95
Expected return on plan assets	(86)	(86)	(86)
Amortization of net actuarial loss	92	74	68
Amortization of prior service cost	(12)	(12)	(12)
Amortization of transition obligation	3	3	3
NET PERIODIC POSTRETIREMENT BENEFIT COST	112	96	88
Cost capitalized	(39)	(35)	(32)
Cost charged/(deferred)	4	3	(11)
Cost charged to operating expenses	$ 77	$ 64	$ 45

Other Postretirement Benefits (Funded Status) (Details) (Other Postretirement Benefit Plans, Defined Benefit [Member], USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Other Postretirement Benefit Plans, Defined Benefit [Member]
Projected benefit obligation at beginning of year	$ 1,697	$ 1,702	$ 1,630
Service cost	24	22	20
Interest cost on accumulated other postretirement benefit obligation	91	95	95
Net actuarial loss/(gain)	(68)	(14)	46
Benefits paid and administrative expenses	(138)	(141)	(121)
Participant contributions	29	26	25
Medicare prescription benefit	7	7	7
PROJECTED BENEFIT OBLIGATION AT END OF YEAR	1,642	1,697	1,702
Fair value of plan assets at beginning of year	866	737	988
Actual return on plan assets	89	153	(233)
Employer contributions	96	86	77
Benefits paid	(138)	(136)	(120)
FAIR VALUE OF PLAN ASSETS AT END OF YEAR	942	866	737
FUNDED STATUS	(700)	(831)	(965)
Unrecognized net loss	483	646	799
Unrecognized prior service costs	(10)	(23)	(35)
Unrecognized net transition liability at January 1, 1993	$ 7	$ 11	$ 15

Other Postretirement Benefits (Actuarial Assumptions) (Details) (Other Postretirement Benefit Plans, Defined Benefit [Member])	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Other Postretirement Benefit Plans, Defined Benefit [Member]
Discount rate	5.40%	5.95%	5.75%
Discount rate, net periodic benefit	5.95%	5.75%	6.00%
Expected return on plan assets	8.50%	8.50%	8.50%

Other Postretirement Benefits (Assumed Health Care Cost Trend Rate) (Details) (Other Postretirement Benefit Plans, Defined Benefit [Member], USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010
Other Postretirement Benefit Plans, Defined Benefit [Member]
Effect on accumulated other postretirement benefit obligation, increase	$ 27
Effect on accumulated other postretirement benefit obligation, decrease	(11)
Effect on service cost and interest cost components for 2009, increase	2
Effect on service cost and interest cost components for 2009, decrease	$ (1)

Other Postretirement Benefits (Expected Benefit Payments) (Details) (Other Postretirement Benefit Plans, Defined Benefit [Member], USD $) In Millions, unless otherwise specified	Dec. 31, 2010
Other Postretirement Benefit Plans, Defined Benefit [Member]
2011	$ 123
2012	126
2013	128
2014	130
2015	131
2016-2020	658
2011 - Prescriptions	11
2012 - Prescriptions	12
2013 - Prescriptions	13
2014 - Prescriptions	14
2015 - Prescriptions	15
2016-2020 - Prescriptions	$ 88

Other Postretirement Benefits (Plan Asset Allocations) (Details) (Other Postretirement Benefit Plans, Defined Benefit [Member])	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Other Postretirement Benefit Plans, Defined Benefit [Member]
Equity Securities, Target Allocation, Minimum	57.00%
Equity Securities, Target Allocation, Maximum	73.00%
Plan Assets, Equity Securities		67.00%	66.00%	56.00%
Debt Securities, Target Allocation, Minimum	26.00%
Debt Securities, Target Allocation, Maximum	44.00%
Plan Assets, Debt Securities		33.00%	34.00%	44.00%
Total	100.00%
Total		100.00%	100.00%	100.00%

Other Postretirement Benefits (Fair Value of Plan Assets) (Details) (USD $)
In Millions, unless otherwise specified

12 Months Ended

Dec. 31, 2010

Dec. 31, 2009

Dec. 31, 2008

Dec. 31, 2007

Other Postretirement Benefit Plans, Defined Benefit [Member]

$ 597

$ 526

Investments (excluding funds for retiree health benefits)

359

^[1]

334

^[1]

956

860

(14)

^[2]

942

866

737

988

Fair Value, Inputs, Level 1 [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member]

118

101

Investments (excluding funds for retiree health benefits)

226

^[1]

215

^[1]

344

316

^[2]

Fair Value, Inputs, Level 2 [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member]

290

244

Investments (excluding funds for retiree health benefits)

103

^[1]

393

335

^[2]

Fair Value, Inputs, Level 3 [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member]

189

181

Investments (excluding funds for retiree health benefits)

^[1]

219

209

^[2]

189

181

205

U.S. Equity [Member]

U.S. Equity [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member]

290

^[3]

244

^[3]

U.S. Equity [Member] | Fair Value, Inputs, Level 1 [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member]

118

^[3]

101

^[3]

U.S. Equity [Member] | Fair Value, Inputs, Level 2 [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member]

172

^[3]

143

^[3]

U.S. Equity [Member] | Fair Value, Inputs, Level 3 [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member]

^[3]

International Equity [Member]

International Equity [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member]

107

^[4]

International Equity [Member] | Fair Value, Inputs, Level 1 [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member]

^[4]

International Equity [Member] | Fair Value, Inputs, Level 2 [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member]

107

^[4]

International Equity [Member] | Fair Value, Inputs, Level 3 [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member]

^[4]

Other Fixed Income [Member]

Other Fixed Income [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member]

189

^[5]

173

^[5]

Other Fixed Income [Member] | Fair Value, Inputs, Level 1 [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member]

^[5]

Other Fixed Income [Member] | Fair Value, Inputs, Level 2 [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member]

^[5]

Other Fixed Income [Member] | Fair Value, Inputs, Level 3 [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member]

189

^[5]

173

^[5]

189

173

197

Insurance Contracts [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member]

^[6]

Insurance Contracts [Member] | Fair Value, Inputs, Level 1 [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member]

^[6]

Insurance Contracts [Member] | Fair Value, Inputs, Level 2 [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member]

^[6]

Insurance Contracts [Member] | Fair Value, Inputs, Level 3 [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member]

^[6]

Cash and Cash Equivalents [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member]

^[7]

Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 1 [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member]

^[7]

Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 2 [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member]

^[7]

Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 3 [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member]

Remediation costs incurred

^[7]

[1]	The Companies set aside funds for retiree health benefits through a separate account within the pension trust, as permitted under Section 401(h) of the Internal Revenue Code of 1986, as amended. In accordance with the Code, the plan's investments in the 401(h) account may not be used for, or diverted to, any purpose other than providing health benefits for retirees. The net assets held in the 401(h) account are calculated based on a pro-rata percentage allocation of the net assets in the pension plan. The related obligations for health benefits are not included in the pension plan's obligations and are included in the Companies' other postretirement benefit obligation. See Note E.
[2]	Pending activities include security purchases and sales that have not settled, interest and dividends that have not been received, and reflects adjustments for available estimates at year end.
[3]	U.S. Equity includes both actively- and passively-managed assets with investments in domestic equity index funds and commingled funds.
[4]	International Equity includes commingled international equity funds.
[5]	Other Fixed Income includes commingled funds, which are valued at Net Asset Value (NAV).
[6]	Insurance Contracts represent the cash surrender value of life insurance policies. The contracts are measured at NAV, adjusted for fees charged by the insurance company.
[7]	Cash and Cash Equivalents include short term investments and money markets.

Other Postretirement Benefits (Reconciliation of Net Balances) (Details) (USD $) In Millions, unless otherwise specified					12 Months Ended		12 Months Ended		12 Months Ended			12 Months Ended			12 Months Ended			12 Months Ended			12 Months Ended
	Dec. 31, 2010 Other Postretirement Benefit Plans, Defined Benefit [Member]	Dec. 31, 2009 Other Postretirement Benefit Plans, Defined Benefit [Member]	Dec. 31, 2008 Other Postretirement Benefit Plans, Defined Benefit [Member]	Dec. 31, 2007 Other Postretirement Benefit Plans, Defined Benefit [Member]	Dec. 31, 2009 Other Fixed Income [Member]	Dec. 31, 2008 Other Fixed Income [Member]	Dec. 31, 2009 Funds for Retiree Health Benefits [Member]	Dec. 31, 2008 Funds for Retiree Health Benefits [Member]	Dec. 31, 2010 Fair Value, Inputs, Level 3 [Member] Other Postretirement Benefit Plans, Defined Benefit [Member]	Dec. 31, 2009 Fair Value, Inputs, Level 3 [Member] Other Postretirement Benefit Plans, Defined Benefit [Member]	Dec. 31, 2008 Fair Value, Inputs, Level 3 [Member] Other Postretirement Benefit Plans, Defined Benefit [Member]	Dec. 31, 2010 Fair Value, Inputs, Level 3 [Member] Other Fixed Income [Member] Other Postretirement Benefit Plans, Defined Benefit [Member]	Dec. 31, 2009 Fair Value, Inputs, Level 3 [Member] Other Fixed Income [Member] Other Postretirement Benefit Plans, Defined Benefit [Member]	Dec. 31, 2008 Fair Value, Inputs, Level 3 [Member] Other Fixed Income [Member] Other Postretirement Benefit Plans, Defined Benefit [Member]	Dec. 31, 2010 Fair Value, Inputs, Level 3 [Member] Insurance Contracts [Member] Other Postretirement Benefit Plans, Defined Benefit [Member]	Dec. 31, 2009 Fair Value, Inputs, Level 3 [Member] Insurance Contracts [Member] Other Postretirement Benefit Plans, Defined Benefit [Member]	Dec. 31, 2008 Fair Value, Inputs, Level 3 [Member] Insurance Contracts [Member] Other Postretirement Benefit Plans, Defined Benefit [Member]	Dec. 31, 2010 Fair Value, Inputs, Level 3 [Member] Funds for Retiree Health Benefits [Member] Other Postretirement Benefit Plans, Defined Benefit [Member]	Dec. 31, 2009 Fair Value, Inputs, Level 3 [Member] Funds for Retiree Health Benefits [Member] Other Postretirement Benefit Plans, Defined Benefit [Member]	Dec. 31, 2008 Fair Value, Inputs, Level 3 [Member] Funds for Retiree Health Benefits [Member] Other Postretirement Benefit Plans, Defined Benefit [Member]	Dec. 31, 2010 Fair Value, Inputs, Level 3 [Member] Investments (Including Funds For Retiree Health Benefits) [Member] Other Postretirement Benefit Plans, Defined Benefit [Member]	Dec. 31, 2009 Fair Value, Inputs, Level 3 [Member] Investments (Including Funds For Retiree Health Benefits) [Member] Other Postretirement Benefit Plans, Defined Benefit [Member]	Dec. 31, 2008 Fair Value, Inputs, Level 3 [Member] Investments (Including Funds For Retiree Health Benefits) [Member] Other Postretirement Benefit Plans, Defined Benefit [Member]
Beginning Balance as of January 1	$ 942	$ 866	$ 737	$ 988	$ 46	$ 52	$ (28)	$ (41)	$ 189	$ 181	$ 205	$ 189	$ 173	$ 197		$ 8	$ 8	$ 30	$ 28	$ 41	$ 219	$ 209	$ 246
Assets Still Held at Reporting Date - Unrealized Gains (Losses)					2		2		11	11		11	11					3	(2)		14	9
Assets Sold During the Period - Realized Gains					1		6			3		1	3		(1)			2	(6)		2	(3)
Purchases, Sales and Settlements					(9)		5		(3)	(38)		4	(38)		(7)			(3)	(5)		(6)	(43)
Ending Balance as of December 31	$ 942	$ 866	$ 737	$ 988	$ 46	$ 52	$ (28)	$ (41)	$ 189	$ 181	$ 205	$ 189	$ 173	$ 197		$ 8	$ 8	$ 30	$ 28	$ 41	$ 219	$ 209	$ 246

Environmental Matters (Environmental Remediation Costs) (Details) (CONSOLIDATED EDISON INC [Member], USD $)
In Millions, unless otherwise specified

12 Months Ended

Dec. 31, 2010

Dec. 31, 2009

CONSOLIDATED EDISON INC [Member]

$ 39

$ 77

Insurance recoveries received

$ 1

^[1]

$ 4

^[1]

[1]	Reduced amount deferred for recovery from customers

Other Material Contingencies (Narrative) (Details) (USD $)
In Millions, unless otherwise specified

Dec. 31, 2010

Dec. 31, 2009

Guarantee obligations maximum exposure

$ 859

$ 929

Collateral Already Posted, Aggregate Fair Value

105

^[1]

Estimate of the maximum potential obligation

RCN's Corporation [Member]

Guarantor Obligations, Current Carrying Value

Surety Bonds [Member]

Guarantor Obligations, Current Carrying Value

Wholesale Counterparties [Member]

Collateral Already Posted, Aggregate Fair Value

Equipment [Member]

Guarantor Obligations, Current Carrying Value

$ 6

[1]

Other Material Contingencies (Total Guarantees) (Details) (USD $) In Millions, unless otherwise specified	Dec. 31, 2010	Dec. 31, 2009
Guarantee Obligations Maximum Exposure	$ 859	$ 929
Financial and Performance Guarantee for Commodity Transactions [Member]
Guarantee Obligations Maximum Exposure	760
Financial and Performance Guarantee for Affordable Housing Program [Member]
Guarantee Obligations Maximum Exposure	1
Financial and Performance Guarantee for Intra Company [Member]
Guarantee Obligations Maximum Exposure	31
Financial and Performance Guarantee Other [Member]
Guarantee Obligations Maximum Exposure	67
Guarantee Duration, 0-3 Years [Member]
Guarantee Obligations Maximum Exposure	621
Guarantee Duration, 0-3 Years [Member] \| Financial and Performance Guarantee for Commodity Transactions [Member]
Guarantee Obligations Maximum Exposure	543
Guarantee Duration, 0-3 Years [Member] \| Financial and Performance Guarantee for Affordable Housing Program [Member]
Guarantee Obligations Maximum Exposure	1
Guarantee Duration, 0-3 Years [Member] \| Financial and Performance Guarantee for Intra Company [Member]
Guarantee Obligations Maximum Exposure	30
Guarantee Duration, 0-3 Years [Member] \| Financial and Performance Guarantee Other [Member]
Guarantee Obligations Maximum Exposure	47
Guarantee Duration, 4-10 Years [Member]
Guarantee Obligations Maximum Exposure	96
Guarantee Duration, 4-10 Years [Member] \| Financial and Performance Guarantee for Commodity Transactions [Member]
Guarantee Obligations Maximum Exposure	76
Guarantee Duration, 4-10 Years [Member] \| Financial and Performance Guarantee for Affordable Housing Program [Member]
Guarantee Obligations Maximum Exposure
Guarantee Duration, 4-10 Years [Member] \| Financial and Performance Guarantee for Intra Company [Member]
Guarantee Obligations Maximum Exposure
Guarantee Duration, 4-10 Years [Member] \| Financial and Performance Guarantee Other [Member]
Guarantee Obligations Maximum Exposure	20
Guarantee Duration, Greater than 10 Years [Member]
Guarantee Obligations Maximum Exposure	142
Guarantee Duration, Greater than 10 Years [Member] \| Financial and Performance Guarantee for Commodity Transactions [Member]
Guarantee Obligations Maximum Exposure	141
Guarantee Duration, Greater than 10 Years [Member] \| Financial and Performance Guarantee for Affordable Housing Program [Member]
Guarantee Obligations Maximum Exposure
Guarantee Duration, Greater than 10 Years [Member] \| Financial and Performance Guarantee for Intra Company [Member]
Guarantee Obligations Maximum Exposure	1
Guarantee Duration, Greater than 10 Years [Member] \| Financial and Performance Guarantee Other [Member]
Guarantee Obligations Maximum Exposure

Leases (Narrative) (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended							12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2010 Tax Deficiency Paid in December 2005 [Member]	Dec. 31, 2010 Interest in April 2006 [Member]	Dec. 31, 2010 Disallowance of Tax 1998-2007 [Member]	Dec. 31, 2009 Disallowance of Tax 2009 [Member]	Dec. 31, 2008 Disallowance of Tax 2008 [Member]	Dec. 31, 2010 Interest Up To December 2010 [Member]
Accumulated amortization	$ 59	$ 53
Lease in lease out total investment	259
Lease in lease out total financed by equity	93
Lease in lease out total financed by long-term debt	166
The company's investment in leverage leases	(41)	(24)
Gross investment in leverage leases	235	235
Deferred tax liabilities	276	259
Tax deficiency paid to IRS			0.3
Interest paid related to tax deficiency				0.2				77.0
Disallowed deduction					416	41	42
Tax savings From LILO transactions	$ 222

Leases (Future Minimum Lease Commitments) (Details) (USD $) In Millions, unless otherwise specified	Dec. 31, 2010
2011	$ 8
2012	6
2013
2014
2015
All years thereafter	2
Total	16
Less: amount representing interest	3
Present value of net minimum lease payment	$ 13

Leases (Future Minimum Lease Commitments on Operating Leases) (Details) (USD $) In Millions, unless otherwise specified	Dec. 31, 2010
2011	$ 46
2012	47
2013	50
2014	43
2015	12
All years thereafter	94
Total	$ 292

Income Tax (Narrative) (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Nov. 30, 2010	Dec. 31, 2009	Dec. 31, 2008	Dec. 31, 2007
Net operating loss carryforwards	$ 105
Prepaid income tax payments	240
Income taxes refund	37	297
Unrecognized tax benefits	93		86	118	155
Other assets	19
Accrued liability for uncertain tax position	51
Uncertain income taxes	93
New York State [Member]
Net operating loss carryforwards	220
Unrecognized tax benefits	8
Internal Revenue Service (IRS) [Member]
Deposits	$ 160

Income Tax (Components of Income Tax) (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
State - current	$ 23	$ (12)	$ 53
State - deferred, net	106	118	84
Federal - current	(144)	16	1
Federal - deferred, net	569	324	392
Amortization of investment tax credits	(6)	(6)	(6)
TOTAL CHARGE TO INCOME TAX EXPENSE	$ 548	$ 440	$ 524

Income Tax (Differences in Deferred Tax Assets and Liabilities) (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009
Deferred tax liabilities - Depreciation	$ 3,019	$ 2,569
Deferred tax liabilities - Regulatory Asset - future income tax	1,760	1,489
Deferred tax liabilities - Unrecognized pension and other postretirement costs	1,775	1,814
Deferred tax liabilities - State income tax	760	645
Deferred tax liabilities - Capitalized overheads	508	477
Deferred tax liabilities - Other	744	646
Total deferred tax liabilities	8,566	7,640
Deferred tax assets - Unrecognized pension and other postretirement costs	1,775	1,814
Deferred tax assets - Regulatory liability - future income tax	135	172
Deferred tax assets - State income tax	20	27
Deferred tax assets - Other	95	84
Total deferred tax assets	2,025	2,097
NET LIABILITIES	6,541	5,543
INVESTMENT TAX CREDITS	61	66
DEFERRED INCOME TAXES AND INVESTMENT TAX CREDITS - Non current	6,602	5,609
DEFERRED INCOME TAXES - RECOVERABLE ENERGY COSTS - Current	5	12
TOTAL DEFERRED INCOME TAXES AND INVESTMENT TAX CREDITS	$ 6,607	$ 5,621

Income Tax (Schedule of Income Tax Reconciliation) (Details)	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Statutory federal tax rate	35.00%	35.00%	35.00%
State income tax	5.00%	5.00%	6.00%
Depreciation related differences		1.00%	1.00%
Cost of removal	(4.00%)	(5.00%)	(5.00%)
Other	(1.00%)	(3.00%)	(1.00%)
Effective Tax Rate	35.00%	33.00%	36.00%

Income Tax (Summary of Unrecognized Tax Benefits) (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Balance at the beginning of the year	$ 86	$ 118	$ 155
Additions based on tax positions related to the current year	5
Additions based on tax positions of prior years	67	3
Reductions for tax positions of prior years	(4)	(21)	(14)
Settlements	(61)	(14)	(23)
Balance at the end of the year	$ 93	$ 86	$ 118

Stock-Based Compensation (Narrative) (Details) (USD $) In Millions, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009
Stock option awards	10,000,000
Stock option awards, LTIP	10,000,000
Stock option awards, restricted stock	4,000,000
Intrinsic value for outstanding options	$ 18	$ 13
Intrinsic value for exercised options	15	1
Cash received for payment of the exercise price	100	13
Remaining contractual life, years	4
Outstanding units	136,359	135,048
Weighted average fair value as of the grant date	$ 39.898	$ 40.812
Total expense recognized in future periods	29
Number of units issued annually to each individual	1,500
Number of units issued	24,982
Con Edison and CECONY [Member]
Total expense recognized in future periods	$ 1
TSR Portion [Member]
Outstanding units	494,188	426,686
Weighted average fair value as of the grant date	$ 59.096	$ 54.316
Adjustment percentage used for performance awards	50.00%
Factor used for adjustment of performance awards, low end	0.00%
Factor used for adjustment of performance awards, high end	150.00%
EIP Portion [Member]
Outstanding units	494,188	426,686
Weighted average fair value as of the grant date	$ 55.226	$ 45.430
Adjustment percentage used for performance awards	50.00%
Factor used for adjustment of performance awards, low end	0.00%
Factor used for adjustment of performance awards, high end	200.00%

Stock-Based Compensation (Summary of Changes in Stock Options Awarded) (Details) (USD $)	12 Months Ended
	Dec. 31, 2010
Outstanding at 12/31/09, shares	5,313,300
Outstanding at 12/31/09	$ 42.955
Exercised, shares	(2,372,550)
Exercised	$ 42.175
Forfeited, shares	(5,500)
Forfeited	$ 40.544
Outstanding at 12/31/10, shares	2,935,250
Outstanding at 12/31/10	$ 43.588

Stock-Based Compensation (Summary of Changes In Stock Options Outstanding) (Details) (USD $)	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009
Remaining Contractual Life	4
Options Outstanding	2,935,250	5,313,300
Weighted Average Exercise Price	$ 43.588	$ 42.955
Options Exercisable	2,935,250
2006 [Member]
Remaining Contractual Life	5
Options Outstanding	1,167,200
Weighted Average Exercise Price	$ 45.418
Options Exercisable	1,167,200
2005 [Member]
Remaining Contractual Life	4
Options Outstanding	641,000
Weighted Average Exercise Price	$ 42.729
Options Exercisable	641,000
2004 [Member]
Remaining Contractual Life	3
Options Outstanding	621,850
Weighted Average Exercise Price	$ 43.810
Options Exercisable	621,850
2003 [Member]
Remaining Contractual Life	2
Options Outstanding	208,600
Weighted Average Exercise Price	$ 39.076
Options Exercisable	208,600
2002 [Member]
Remaining Contractual Life	1
Options Outstanding	199,300
Weighted Average Exercise Price	$ 42.510
Options Exercisable	199,300
2001 [Member]
Remaining Contractual Life	1
Options Outstanding	97,300
Weighted Average Exercise Price	$ 37.750
Options Exercisable	97,300

Stock-Based Compensation (Assumptions used to Calculate Fair Value) (Details)	12 Months Ended
	Dec. 31, 2010
Risk-free interest rate, low range	0.30%
Risk-free interest rate, high range	5.62%
Expected term, years	3
Expected volatility	21.85%

Stock-Based Compensation (Summary of Changes of Performance RSU's) (Details) (USD $)			12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2010 TSR Portion [Member]	Dec. 31, 2010 EIP Portion [Member]
Non-vested at 12/31/09, shares	136,359	135,048	426,686	426,686
Non-vested at 12/31/09	$ 39.898	$ 40.812	$ 54.316	$ 45.430
Granted, shares			243,750	243,750
Granted			$ 41.340	$ 44.540
Vested, shares			(168,511)	(168,511)
Vested			$ 73.035	$ 55.359
Forfeited, shares			(7,737)	(7,737)
Forfeited
Non-vested at 12/31/10, shares	136,359	135,048	494,188	494,188
Non-vested at 12/31/10	$ 39.898	$ 40.812	$ 59.096	$ 55.226

Stock-Based Compensation (Stock Purchase Plan Narrative) (Details) (USD $)	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Maximum employer contribution match	$ 1
Amount employee contribution for employer match	9
Maximum employee investment per year	25,000
Maximum percentage allowed to invest	20.00%
Shares purchased on the open market	738,951	868,622	745,869
Weighted average share price per share, on shares purchased on open market	$ 45.52	$ 38.15	$ 42.47

Financial Information by Business Segment (Financial Data for the Business Segments) (Details) (USD $)
In Millions, unless otherwise specified

12 Months Ended

Dec. 31, 2010

Dec. 31, 2009

Dec. 31, 2008

O&R [Member]

$ 910

$ 890

$ 991

108

2,337

^[1]

2,187

^[1]

2,162

^[1]

135

127

120

Consolidation Adjustments [Member]

(91)

(90)

(91)

^[1]

CONSOLIDATED EDISON INC [Member]

13,325

13,032

13,583

840

791

717

2,120

1,899

1,920

609

611

544

554

455

512

36,146

^[1]

33,844

^[1]

33,498

^[1]

2,029

2,194

2,326

CONSOLIDATED EDISON CO OF NEW YORK INC [Member]

10,573

10,036

10,424

787

744

672

1,922

1,716

1,667

549

553

492

491

402

396

32,435

^[1]

30,461

^[1]

30,415

^[1]

All assets of the business segments

1,866

2,057

2,202

Con Edison Development [Member]

235

CECONY - Electric [Member]

8,376

7,674

7,878

623

587

521

1,549

1,368

1,333

424

425

375

371

300

295

24,942

^[1]

23,309

^[1]

23,181

^[1]

1,421

1,596

1,743

CECONY - Gas [Member]

1,541

1,701

1,839

102

310

309

303

5,038

^[1]

4,796

^[1]

4,882

^[1]

334

339

338

CECONY - Steam [Member]

656

661

707

2,455

^[1]

2,356

^[1]

2,352

^[1]

111

122

121

O&R - Electric [Member]

692

648

733

1,621

^[1]

1,525

^[1]

1,514

^[1]

O&R - Gas [Member]

218

242

258

684

^[1]

627

^[1]

590

^[1]

O&R - Other [Member]

^[1]

^[1]

^[1]

^[1]

^[1]

^[1]

^[1]

^[1]

Competitive Energy Businesses [Member]

1,883

2,147

2,195

(11)

162

(3)

(2)

807

^[1]

751

^[1]

668

^[1]

Other Revenues and Eliminations in Segment Information [Member]

(41)

^[2]

(41)

^[2]

(27)

^[2]

(9)

^[2]

^[2]

(7)

^[2]

(3)

^[2]

(2)

^[2]

^[2]

^[2]

567

^[1],[2]

445

^[1],[2]

253

^[1],[2]

Fair value of derivative assets

^[2]

[1]	Includes amounts related to the RECO securitization.
[2]	Parent company expenses, primarily interest, and consolidation adjustments. Other does not represent a business segment.

Derivative Instruments and Hedging Activities (Narrative) (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010
Energy supply and hedging activities credit exposure total	$ 157
Makeup of net credit exposure counterparties	76
Makeup of net credit exposure primarily with commodity exchange	55
Independent system operators	26
Number of contracts considered derivatives	1,559
Interest rate swap fixed rate	6.09%
Fair value unrealized loss of interest rate swap recorded as noncurrent liability	10
Increase in fair value of swap	$ 1

Derivative Instruments and Hedging Activities (Energy Price Hedging Fair Values) (Details) (USD $) In Millions, unless otherwise specified	Dec. 31, 2010	Dec. 31, 2009
Fair value of net derivative assets/(liabilities) - gross	$ (261)	$ (266)
Impact of netting of cash collateral	176	162
Fair value of net derivative assets/(liabilities) - net	$ (85)	$ (104)

Derivative Instruments and Hedging Activities (Fair Values of the Companies' Commodity Derivatives) (Details) (USD $)
In Millions, unless otherwise specified

Dec. 31, 2010

Dec. 31, 2009

$ 235

^[1]

$ 361

^[1]

Net derivatives asset

106

^[1]

130

^[1]

Net derivatives liability

496

^[1]

627

^[1]

191

^[1]

234

^[1]

Derivatives Asset [Member]

Impact of netting

(129)

^[1]

(231)

^[1]

Derivatives Asset [Member] | Other Current Assets [Member]

Fair value of derivative assets

184

^[1]

213

^[1]

Derivatives Asset [Member] | Other Deferred Charges and Non-current Assets [Member]

Fair value of derivative assets

^[1]

148

^[1]

Derivatives Liability [Member]

Impact of netting

(305)

^[1]

(393)

^[1]

Derivatives Liability [Member] | Fair Value of Derivative Liabilities, Current [Member]

385

^[1]

401

^[1]

Derivatives Liability [Member] | Other Current Liabilities [Member]

^[1]

Derivatives Liability [Member] | Fair Value of Derivative Liabilities, Long Term [Member]

$ 111

^[1]

$ 226

^[1]

[1]	Qualifying derivative contracts, which have been designated as normal purchases or normal sales contracts, are not reported at fair value under the accounting rules for derivatives and hedging and, therefore, are excluded from the table.

Derivative Instruments and Hedging Activities (Changes in the Fair Values of Commodity Derivatives) (Details) (USD $)
In Millions, unless otherwise specified

12 Months Ended

Dec. 31, 2010

Dec. 31, 2009

Total deferred losses

$ (302)

^[1]

$ (426)

^[1]

Net deferred losses

(306)

^[1]

(441)

^[1]

(156)

^[1],[2]

(523)

^[1]

Total deferred gains

(4)

^[1]

(15)

^[1]

Purchased Power Expense [Member]

Unrealized gain/(loss) on derivatives, tax

(173)

^[1],[2]

(562)

^[1],[3]

(165)

Gas Purchased for Resale [Member]

(9)

^[1]

Non-utility Revenue [Member]

Unrealized gain/(loss) on derivatives, tax

^[1],[2]

^[1],[3]

(36)

196

Deferred Derivative Gains [Member]

Current-Deferred derivative gains

(5)

^[1]

(15)

^[1]

Regulatory Liabilities, Long Term [Member]

Total deferred gains

^[1]

Deferred Derivative Losses [Member]

Deferred derivative losses, current

(49)

^[1]

147

^[1]

Recoverable Energy Costs [Member]

Deferred gain/(loss), asset

(285)

^[1]

(558)

^[1]

Regulatory Assets, Long Term [Member]

Deferred gain/(loss), asset

$ 32

^[1]

$ (15)

^[1]

[1]	Qualifying derivative contracts, which have been designated as normal purchases or normal sales contracts, are not reported at fair value under the accounting rules for derivatives and hedging and, therefore, are excluded from the table.
[2]	For the year ended December 31, 2010, Con Edison recorded in non-utility operating revenues and purchased power expense an unrealized pre-tax gain/(loss) of $(36) million and $56 million, respectively.
[3]	For the year ended December 31, 2009, Con Edison recorded in non-utility operating revenues and purchased power expense an unrealized pre-tax gain/(loss) of $196 million and $(165) million, respectively.

Derivative Instruments and Hedging Activities (Number of Derivative Contracts by Commodity Type) (Details)

12 Months Ended

Dec. 31, 2010

Number of Energy Contracts

1,559

^[1]

Description Of Derivative Activity Volume Electric Derivatives [Member]

Number of Energy Contracts

799

^[1]

MWhs

20,569,025

^[2]

Number of Capacity Contracts

^[1]

MWs

10,524

^[2]

Description Of Derivative Activity Volume Gas Derivatives [Member]

Number of Energy Contracts

712

^[1]

Dths

136,269,210

^[2]

[1]	Qualifying derivative contracts, which have been designated as normal purchases or normal sales contracts, are not reported at fair value under the accounting rules for derivatives and hedging and, therefore, are excluded from the table.
[2]	Volumes are reported net of long and short positions.

Derivative Instruments and Hedging Activities (Aggregate Fair Value of All Derivative Instruments with Credit Risk Related Contingent Features) (Details) (USD $)
In Millions, unless otherwise specified

Dec. 31, 2010

Aggregate fair value - net liabilities

$ 249

^[1]

Collateral posted

105

^[1]

CONSOLIDATED EDISON INC [Member]

Collateral posted

101

Additional Collateral Aggregate Fair Value Down One Level [Member]

Additional collateral

^[1],[2],[3]

Additional Collateral Aggregate Fair Value Down Below Investment Grade [Member]

Additional collateral

180

^[1],[2],[4]

Additional Collateral Aggregate Fair Value Down Below Investment Grade [Member] | CONSOLIDATED EDISON INC [Member]

Collateral posted

$ 24

[1]	Non-derivative transactions for the purchase and sale of electricity and gas and qualifying derivative instruments, which have been designated as normal purchases or normal sales, are excluded from the table. These transactions primarily include purchases of electricity from independent system operators. In the event the Utilities and Con Edison's competitive energy businesses were no longer extended unsecured credit for such purchases, the Companies would be required to post collateral, which at December 31, 2010, would have amounted to an estimated $101 million for Con Edison, including $0 million for CECONY. For certain other such non-derivative transactions, the Companies could be required to post collateral under certain circumstances, including in the event counterparties had reasonable grounds for insecurity.
[2]	The current ratings are Moody's, S&P and Fitch long-term credit rating of, as applicable, Con Edison (Baa1/BBB+/BBB+), CECONY (A3/A-/A-) or O&R (Baa1/A-/A-). Credit ratings assigned by rating agencies are expressions of opinions that are subject to revision or withdrawal at any time by the assigning rating agency.
[3]	The Companies measure the collateral requirements by taking into consideration the fair value amounts of derivative instruments that contain credit-risk-related contingent features that are in a net liabilities position plus amounts owed to counterparties for settled transactions and amounts required by counterparties for minimum financial security. The fair value amounts represent unrealized losses, net of any unrealized gains where the Companies have a legally enforceable right of setoff.
[4]	Derivative instruments that are net assets have been excluded from the table. At December 31, 2010, if Con Edison had been downgraded to below investment grade, it would have been required to post additional collateral for such derivative instruments of not more than $24 million.

Fair Value Measurements (Narrative) (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009
Gains on Level 3 energy derivative assets	$ 22
Gains on Level 3 energy derivative liabilities		17
Loss on Level 3 energy derivative assets for purchased power costs	44
Fair value, liabilities measured on recurring basis, gain (loss) included in purchased power costs		184
Fair value, assets measured on recurring basis, change in unrealized gain (loss) included in other income	(37)	(27)
Fair value, assets measured on recurring basis, change in unrealized gain (loss) included in purchased power costs	$ 24	$ 28

Fair Value Measurements (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) (USD $)
In Millions, unless otherwise specified

12 Months Ended

Dec. 31, 2010

Dec. 31, 2009

$ 272

$ 258

(45)

^[1],[2],[3]

^[1],[2],[3]

201

191

^[4]

245

201

Fair Value, Inputs, Level 1 [Member]

^[1],[2],[3]

^[1],[2],[3]

^[4]

Fair Value, Inputs, Level 2 [Member]

(36)

^[1],[2],[3]

^[1],[2],[3]

243

243

^[4]

296

243

Fair Value, Inputs, Level 3 [Member]

245

293

(9)

^[1],[2],[3]

^[1],[2],[3]

242

232

^[4]

271

242

Netting Adjustments [Member]

(112)

^[5]

(166)

^[5]

^{[1],[2],[3],[5]}

^{[1],[2],[3],[5]}

(288)

^[5]

(288)

^[4],[5]

(328)

^[5]

(288)

^[5]

Commodity [Member]

106

^[4]

130

^[4]

191

234

^[4]

Commodity [Member] | Fair Value, Inputs, Level 1 [Member]

^[4]

^[4]

Commodity [Member] | Fair Value, Inputs, Level 2 [Member]

^[4]

270

296

^[4]

Commodity [Member] | Fair Value, Inputs, Level 3 [Member]

144

^[4]

201

^[4]

205

260

^[4]

Commodity [Member] | Netting Adjustments [Member]

(112)

^[4],[5]

(166)

^[4],[5]

(288)

^[5]

(328)

^[4],[5]

Fair Value Interest Rate Contract [Member]

^[6]

Fair Value Interest Rate Contract [Member] | Fair Value, Inputs, Level 1 [Member]

^[6]

Fair Value Interest Rate Contract [Member] | Fair Value, Inputs, Level 2 [Member]

^[6]

Fair Value Interest Rate Contract [Member] | Fair Value, Inputs, Level 3 [Member]

^[6]

Fair Value Interest Rate Contract [Member] | Netting Adjustments [Member]

^[5],[6]

Fair Value Other Assets [Member]

166

^[7]

128

^[7]

Fair Value Other Assets [Member] | Fair Value, Inputs, Level 1 [Member]

^[7]

Fair Value Other Assets [Member] | Fair Value, Inputs, Level 2 [Member]

^[7]

Fair Value Other Assets [Member] | Fair Value, Inputs, Level 3 [Member]

101

^[7]

Fair Value Other Assets [Member] | Netting Adjustments [Member]

^[5],[7]

[1]	The Companies' policy is to recognize transfers into and transfers out of the levels at the end of the reporting period.
[2]	Transferred from Level 2 to Level 3 because of reassessment of the levels in the fair value hierarchy within which certain inputs fall
[3]	Transferred from Level 3 to Level 2 because of availability of observable market data due to decrease in the terms of certain contracts from beyond one year as of December 31, 2009 to less than one year as of December 31, 2010.
[4]	A significant portion of the commodity derivative contracts categorized in Level 3 is valued using either an industry acceptable model or an internally developed model with observable inputs. The models also include some less readily observable inputs resulting in the classification of the entire contract as Level 3. See Note O.
[5]	Amounts represent the impact of legally-enforceable master netting agreements that allow the Companies to net gain and loss positions and cash collateral held or placed with the same counterparties.
[6]	See Note O.
[7]	Other assets are comprised of assets such as life insurance contracts within the Deferred Income Plan and Supplemental Retirement Income Plans, held in rabbi trusts.

Fair Value Measurements (Reconciliation of the Beginning and Ending Net Balances for Assets and Liabilities Measured at Level 3 Fair Value) (Details) (USD $)
In Millions, unless otherwise specified

12 Months Ended

Dec. 31, 2010

Dec. 31, 2009

$ 22

$ 8

(73)

(245)

(30)

(7)

266

Commodity [Member]

(59)

(50)

(73)

(249)

(37)

(23)

263

(88)

(59)

Fair Value Interest Rate Contract [Member]

(11)

(15)

(3)

(10)

(11)

Fair Value Other Assets [Member]

^[1]

^[1]

^[1]

^[1]

^[1]

$ 101

^[1]

$ 92

^[1]

[1]	Amounts included in earnings are reported in investment and other income on the consolidated income statement.

Variable Interest Entities (Narrative) (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009
Maximum exposure to loss related to VIE involvement	0.3	4
Assets related to Pilesgrove	$ 32
Maximum value of financing provided to Pilesgrove	$ 52

Equity in earnings of subsidiaries

Enterprise's maximum exposure to loss as a result of its involvement with the VIE, including how the maximum exposure is determined, the significant sources of the enterprise's exposure to the VIE, and the differences between the maximum exposure to loss and the liability recognized in its financial statements. It may also include factors such as the fair market value at which the registrant is carrying an asset and registrant guarantees. Also, whether the enterprise's maximum exposure to loss as a result of its involvement with the VIE cannot be quantified. In general, a VIE is a corporation, partnership, trust, or any other legal structure used for business purposes that either (a) does not have equity investors with voting rights or (b) has equity investors that do not provide sufficient financial resources for the entity to support its activities. A VIE often holds financial assets, including loans or receivables, real estate or other property. A VIE may be essentially passive or it may engage in research and development or other activities on behalf of another company.

+ References+ Details

Asset Retirement Obligations (Narrative) (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009
Regulatory Liabilities	$ 919	$ 838
Asset retirement obligations	109	122
Increased retirement costs	18	28
CONSOLIDATED EDISON INC [Member]
Regulatory Liabilities	$ 421	$ 371

Con Edison Development (Narrative) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended	1 Months Ended		12 Months Ended
	Jun. 30, 2008 mW	May 31, 2008 Rock Springs, Ocean Peaking Power and CEEMI Projects [Member]	Dec. 31, 2008 Rock Springs, Ocean Peaking Power and CEEMI Projects [Member]	Dec. 31, 2008 Newington and Lakewood Projects [Member]	Jun. 30, 2008 Newington and Lakewood Projects [Member]
Aggregate capacity of MW's sold	1,706
Total cash proceeds from sale	$ 1,067
After tax gain on sale	400
Public utilities, energy management services, low range in years		1
Public utilities, energy management services, high range in years		2
After tax gain on sale			136		270
Revenues				143
Pre-tax profits				$ 7

Schedule I (Condensed Income Statements) (Details) (Parent Company [Member], USD $)
In Millions, except Per Share data, unless otherwise specified

12 Months Ended

Dec. 31, 2010

Dec. 31, 2009

Dec. 31, 2008

Parent Company [Member]

$ 1,008

^[1]

$ 883

^[1]

$ 900

^[1]

Other income (deductions), net of taxes

^[1]

Interest expense

(28)

^[1]

(29)

^[1]

(26)

^[1]

Income from continuing operations

992

^[1]

868

^[1]

922

^[1]

Income from discontinued operations (net of tax expense of $177 in 2008)

274

^[1]

Net income for common stock

$ 992

^[1]

$ 868

^[1]

$ 1,196

^[1]

Earning Per Common Share - Basic

Continuing operations - Basic

$ 3.49

^[1]

$ 3.16

^[1]

$ 3.37

^[1]

Discontinued operations - Basic

$ 1.01

^[1]

Earnings per share - Basic

$ 3.49

^[1]

$ 3.16

^[1]

$ 4.38

^[1]

Earning Per Common Share - Diluted

Continuing operations

$ 3.47

^[1]

$ 3.14

^[1]

$ 3.36

^[1]

Discontinued operations

$ 1.01

^[1]

Earnings per share - Diluted

$ 3.47

^[1]

$ 3.14

^[1]

$ 4.37

^[1]

Dividends declared per share of common stock

$ 2.38

^[1]

$ 2.36

^[1]

$ 2.34

^[1]

Average number of shares outstanding - Basic (In Millions)

284.3

^[1]

275.2

^[1]

272.9

^[1]

Average number of shares outstanding - Diluted (In Millions)

285.9

^[1]

276.3

^[1]

273.6

^[1]

[1]	These financial statements, in which Con Edison's subsidiaries have been included using the equity method, should be read together with its consolidated financial statements and the notes thereto appearing above.

Schedule I (Condensed Statement of Cash Flows) (Details) (USD $)
In Millions, unless otherwise specified

12 Months Ended

Dec. 31, 2010

Dec. 31, 2009

Dec. 31, 2008

O&R [Member]

$ (32)

^[1]

$ (32)

^[1]

$ (31)

^[1]

CECONY [Member]

904

792

794

Net Cash Flows From Operating Activities

(670)

^[1]

(652)

^[1]

(618)

^[1]

Other - net

(11)

122

195

2,205

2,222

1,036

INVESTING ACTIVITY

Contributions to subsidiaries

355

211

752

Net Cash Flows (Used In)/From Investing Activities

(1,998)

(2,108)

(2,448)

FINANCING ACTIVITY

(253)

(302)

(850)

(655)

(280)

(260)

(20)

1,328

(53)

(84)

131

121

131

Competitive Energy Businesses [Member]

(8)

^[1]

(8)

^[1]

(12)

^[1]

Parent Company [Member]

Equity in earnings of subsidiaries

992

^[1]

868

^[1]

1,196

^[1]

(1,008)

^[1]

(883)

^[1]

(1,174)

^[1]

Net Cash Flows From Operating Activities

(629)

^[1]

(601)

^[1]

(618)

^[1]

Other - net

(4)

^[1]

(462)

^[1]

690

^[1]

762

^[1]

221

^[1]

INVESTING ACTIVITY

Contributions to subsidiaries

(355)

^[1]

(241)

^[1]

(791)

^[1]

Proceeds from sale of subsidiaries

1,461

^[1]

Net Cash Flows (Used In)/From Investing Activities

(355)

^[1]

(241)

^[1]

670

^[1]

FINANCING ACTIVITY

(110)

^[1]

(130)

^[1]

(3)

^[1]

(4)

^[1]

(200)

^[1]

Common shares issued

439

^[1]

257

^[1]

(192)

^[1]

(458)

^[1]

(906)

^[1]

142

^[1]

(15)

^[1]

^[1]

222

^[1]

CONSOLIDATED EDISON INC [Member]

1,003

879

1,207

Net Cash Flows From Operating Activities

(629)

(601)

(618)

Other - net

(207)

346

110

2,381

2,466

640

INVESTING ACTIVITY

Proceeds from sale of subsidiaries

1,477

Net Cash Flows (Used In)/From Investing Activities

(2,175)

(2,360)

(1,071)

FINANCING ACTIVITY

(363)

(477)

(1,011)

(662)

(487)

Common shares issued

439

257

(128)

295

186

(136)

260

210