0001047862-22-000039 | 10-K | XBRL Viewer

Electricity Purchase Agreements

12 Months Ended

Dec. 31, 2021

Note B – Regulatory Matters

Rate Plans

The Utilities provide service to NY customers according to the terms of tariffs approved by the NYSPSC. Tariffs for service to customers of Rockland Electric Company (RECO), O&R’s NJ regulated utility subsidiary, are approved by the NJBPU. The tariffs include schedules of rates for service that limit the rates charged by the Utilities to amounts that the Utilities recover from their customers costs approved by the regulator, including capital costs, of providing service to customers as defined by the tariff. The tariffs implement rate plans adopted by state utility regulators in rate orders issued at the conclusion of rate proceedings. Pursuant to the Utilities’ rate plans, there generally can be no change to the charges to customers during the respective terms of the rate plans other than specified adjustments provided for in the rate plans. The Utilities’ rate plans each cover specified periods, but rates determined pursuant to a plan generally continue in effect until a new rate plan is approved by the state utility regulator.

Common provisions of the Utilities’ NY rate plans include:

Recoverable energy costs that allow the Utilities to recover on a current basis the costs for the energy they supply with no mark-up to their full-service customers.

Cost reconciliations that reconcile pension and other postretirement benefit costs, environmental remediation costs, property taxes, variable-rate tax-exempt debt and certain other costs to amounts reflected in delivery rates for such costs. In addition, changes in the Utilities' costs not reflected in rates, in excess of certain amounts, resulting from changes in tax or changes in legislation, regulation or related actions, are deferred as a regulatory asset or regulatory liability to be reflected in the Utilities' next rate plan or in a manner to be determined by the NYSPSC. Also, the Utilities generally retain the right to petition for recovery or accounting deferral of extraordinary and material cost increases and provision is sometimes made for the utility to retain a share of cost reductions, for example, property tax refunds.

Revenue decoupling mechanisms that reconcile actual energy delivery revenues to the authorized delivery revenues approved by the NYSPSC. The difference is accrued with interest for refund to, or recovery from customers, as applicable.

Earnings sharing that require the Utilities to defer for customer benefit a portion of earnings over specified rates of return on common equity. There is no symmetric mechanism for earnings below specified rates of return on common equity.

Negative revenue adjustments for failure to meet certain performance standards relating to service, reliability, safety and other matters.

Other revenue adjustments represent positive revenue adjustments, positive incentives, and earnings adjustments mechanisms for achievement of performance standards related to achievement of clean energy goals, safety and other matters.

Net utility plant reconciliations that require deferral as a regulatory liability of the revenue requirement impact of the amount, if any, by which actual average net utility plant balances are less than amounts reflected in rates. There is generally no symmetric mechanism if actual average net utility plant balances are more than amounts reflected in rates.

Rate base, as reflected in the rate plans, is, in general, the sum of the Utilities’ net plant, working capital and certain regulatory assets less deferred taxes and certain regulatory liabilities. For each rate plan, the NYSPSC uses a forecast of the average rate base for each year that new rates would be in effect (“rate year”).

Weighted average cost of capital is determined based on the authorized common equity ratio, return on common equity, cost of long-term debt and cost of customer deposits reflected in each rate plan. For each rate plan, the revenues designed to provide the utility a return on invested capital for each rate year are determined by multiplying each utility rate base by its pre–tax weighted average cost of capital. The Utilities’ actual return on common equity will reflect their actual operations for each rate year, and may be more or less than the authorized return on equity reflected in their rate plans (and if more, may be subject to earnings sharing).

The following tables contain a summary of the Utilities’ rate plans:

CECONY – Electric

Effective period

January 2017 – December 2019

January 2020 – December 2022 (a)

Base rate changes

Yr. 1 – $195 million (b)

Yr. 2 – $155 million (b)

Yr. 3 – $155 million (b)

Yr. 1 – $113 million (c)

Yr. 2 – $370 million (c)

Yr. 3 – $326 million (c)

Amortizations to income of net regulatory (assets) and liabilities

Yr. 1 – $84 million

Yr. 2 – $83 million

Yr. 3 – $69 million

Yr. 1 – $267 million (d)

Yr. 2 – $269 million (d)

Yr. 3 – $272 million (d)

Other revenue sources

Retention of $75 million of annual transmission congestion revenues.

Potential earnings adjustment mechanism incentives for energy efficiency and other potential incentives of up to:

Yr. 1 – $28 million

Yr. 2 – $47 million

Yr. 3 – $64 million

In 2017, 2018 and 2019, the company recorded $13 million, $25 million and $43 million of earnings adjustment mechanism incentives for energy efficiency, respectively. The company also achieved $5 million of incentives for service terminations in 2017, 2018 and 2019 that, pursuant to the rate plan, is being recorded ratably in earnings from 2018 to 2020. In 2018 and 2019, the company recorded $3 million and $7 million of incentives for service terminations, respectively.

Retention of $75 million of annual transmission congestion revenues.

Potential earnings adjustment mechanism incentives for energy efficiency and other potential incentives of up to:

Yr. 1 - $69 million

Yr. 2 - $74 million

Yr. 3 - $79 million

In 2020 and 2021, the company recorded $34 million and $64 million primarily related to earnings adjustment mechanism incentives for energy efficiency, respectively.

Revenue decoupling mechanisms

Continuation of reconciliation of actual to authorized electric delivery revenues.

In 2017, 2018 and 2019, the company deferred for customer benefit $45 million, $(6) million and $169 million of revenues, respectively.

Continuation of reconciliation of actual to authorized electric delivery revenues.

In 2020 and 2021, the company deferred for recovery from customers $242 million and $226 million of revenues, respectively.

Recoverable energy costs

Continuation of current rate recovery of purchased power and fuel costs.

Negative revenue adjustments

Potential charges if certain performance targets relating to service, reliability, safety and other matters are not met:

Yr. 1 – $376 million

Yr. 2 – $341 million

Yr. 3 – $352 million

In 2017 and 2018, the company did not record any negative revenue adjustments. In 2019, the company recorded negative revenue adjustments of $15 million.

Potential charges if certain performance targets relating to service, reliability, safety and other matters are not met:

Yr. 1 - $450 million

Yr. 2 - $461 million

Yr. 3 - $476 million

In 2020, the company recorded negative revenue adjustments of $5 million. In 2021, the company did not record any negative revenue adjustments.

Cost reconciliations

Continuation of reconciliation of expenses for pension and other postretirement benefits, variable-rate tax-exempt debt, major storms, property taxes (e), municipal infrastructure support costs (f), the impact of new laws and environmental site investigation and remediation to amounts reflected in rates (g).

In 2017, 2018 and 2019, the company deferred $35 million, $189 million and $10 million of net regulatory assets, respectively.

Continuation of reconciliation of expenses for pension and other postretirement benefits, variable-rate debt, major storms, property taxes (e), municipal infrastructure support costs (f), the impact of new laws and environmental site investigation and remediation to amounts reflected in rates (g).

In 2020 and 2021, the company deferred $288 million and $191 million of net regulatory assets, respectively.

Net utility plant reconciliations

Target levels reflected in rates:

Electric average net plant target excluding advanced metering infrastructure (AMI):

Yr. 1 – $21,689 million

Yr. 2 – $22,338 million

Yr. 3 – $23,002 million

AMI:

Yr. 1 – $126 million

Yr. 2 – $257 million

Yr. 3 – $415 million

The company deferred $0.4 million as a regulatory asset in 2017. In 2018 and 2019, $0.4 and $11.8 million was deferred as a regulatory liability, respectively.

Target levels reflected in rates:

Electric average net plant target excluding advanced metering infrastructure (AMI):

Yr. 1 - $24,491 million

Yr. 2 - $25,092 million

Yr. 3 - $25,708 million

AMI:

Yr. 1 - $572 million

Yr. 2 - $740 million

Yr. 3 - $806 million (h)

The company deferred $4.1 million as a regulatory asset in 2020 and $3.2 million as a regulatory liability in 2021.

Average rate base

Yr. 1 – $18,902 million

Yr. 2 – $19,530 million

Yr. 3 – $20,277 million

Yr. 1 - $21,660 million

Yr. 2 - $22,783 million

Yr. 3 - $23,926 million

Weighted average cost of capital (after-tax)

Yr. 1 – 6.82 percent

Yr. 2 – 6.80 percent

Yr. 3 – 6.73 percent

Yr. 1 to Yr. 3 – 6.61 percent

Authorized return on common equity

9.0 percent

8.80 percent

Actual return on common equity (i) (j)

Yr. 1 – 9.30 percent

Yr. 2 – 9.36 percent

Yr. 3 – 8.82 percent

Yr. 1 – 8.50 percent

Yr. 2 – 8.03 percent

Earnings sharing

Most earnings above an annual earnings threshold of 9.5 percent are to be applied to reduce regulatory assets for environmental remediation and other costs accumulated in the rate year.

In 2017, the company had no earnings above the threshold but recorded a positive adjustment related to 2016 of $5.7 million in earnings.

In 2018 and 2019, the company had no earnings sharing above the threshold.

Most earnings above an annual earnings threshold of 9.3 percent are to be applied to reduce regulatory assets for environmental remediation and other costs accumulated in the rate year.

In 2020 and 2021, the company had no earnings sharing above the threshold. A reserve of $4.3 million was recorded in 2021 related to a potential adjustment to the excess earnings sharing amount for 2016.

Cost of long-term debt

Yr. 1 – 4.93 percent

Yr. 2 – 4.88 percent

Yr. 3 – 4.74 percent

Yr. 1 to Yr. 3 – 4.63 percent

Common equity ratio

48 percent

(a)In January 2020, the NYSPSC approved the October 2019 Joint Proposal for CECONY's electric rate plan for January 2020 through December 2022. If at the end of any semi-annual period ending June 30 and December 31, Con Edison’s investments in its non-utility businesses exceed 15 percent of its total consolidated revenues, assets or cash flow, or if the ratio of holding company debt to total consolidated debt rises above 20 percent, CECONY is required to notify the NYSPSC and submit a ring-fencing plan or a demonstration why additional ring-fencing measures (see Note U) are not necessary.

(b)The electric base rate increases were in addition to a $48 million increase resulting from the December 2016 expiration of a temporary credit under the prior rate plan. At the NYSPSC’s option, these increases were implemented with increases of $199 million in each rate year. Base rates reflect recovery by the company of certain costs of its energy efficiency, system peak reduction and electric vehicle programs (Yr. 1 - $20.5 million; Yr. 2 - $49 million; and Yr. 3 - $107.5 million) over a 10-year period, including the overall pre-tax rate of return on such costs.

(c)Base rates reflect recovery by the company of certain costs of its energy efficiency, Reforming the Energy Vision demonstration projects, non-wire alternative projects (including the Brooklyn Queens demand management program), and off-peak electric vehicle charging programs (Yr. 1 - $206 million; Yr. 2 - $245 million; and Yr. 3 - $251 million) over a ten-year period, including the overall pre-tax rate of return on such costs.

(d)Amounts reflect amortization of the 2018 tax savings under the federal Tax Cuts and Jobs Act of 2017 (TCJA) allocable to CECONY’s electric customers ($377 million) over a three-year period ($126 million annually), the protected portion of the regulatory liability for excess deferred income taxes allocable to CECONY’s electric customers ($1,663 million) over the remaining lives of the related assets ($49 million in Yr. 1, $50 million in Yr. 2, and $53 million in Yr. 3) and the unprotected portion of the net regulatory liability ($784 million) over five years ($157 million annually). Amounts also reflect amortization of the regulatory asset for deferred MTA power reliability costs ($238 million) over a five-year period ($48 million annually).

(e)Deferrals for property taxes are limited to 90 percent of the difference from amounts reflected in rates, subject to an annual maximum for the remaining difference of not more than a maximum number of basis points impact on return on common equity: Yr 1 - 10.0 basis points; Yr 2 - 7.5 basis points; and Yr 3 - 5.0 basis points.

(f)In general, if actual expenses for municipal infrastructure support (other than company labor) are below the amounts reflected in rates the company will defer the difference for credit to customers, and if the actual expenses are above the amount reflected in rates the company will defer for recovery from customers 80 percent of the difference subject to a maximum deferral, subject to certain conditions, of 30 percent of the amount reflected in the January 2017-December 2019 rate plan and 15 percent of the amount reflected in the January 2020-December 2022 rate plan.

(g)In addition, the NYSPSC staff has commenced a focused operations audit to investigate CECONY's income tax accounting. Any NYSPSC ordered adjustment to CECONY’s income tax accounting is expected to be refunded to or collected from customers, as determined by the NYSPSC. See "Other Regulatory Matters," below.

(h)Reconciliation of net utility plant for AMI will be done on a combined basis for electric and gas.

(i)Calculated in accordance with the earnings calculation method prescribed in the rate order.

(j)In November 2021, the NYSPSC issued an order that allowed CECONY to recover $43 million of late payment charges and fees that were not billed for the year ended December 31, 2020. The recalculated return on equity for 2020 which reflects the recovery of these fees is 8.81 percent.

In January 2022, CECONY filed a request with the NYSPSC for an electric rate increase of $1,199 million, effective January 2023. The filing reflects a return on common equity of 10.0 percent and a common equity ratio of 50 percent.

The company is requesting provisions pursuant to which expenses for pension and other post-retirement benefits, long-term debt, storm restoration, property taxes, municipal infrastructure support, the impact of new laws, late payment charges, and environmental site investigation and remediation are reconciled to amounts reflected in rates. In addition, the company is proposing a reconciliation and current recovery or surcharge mechanism of uncollectible write-offs to the level in rates and a reconciliation of the impacts of inflation on operation and maintenance expenses under certain circumstances. The company is proposing the continuation of earnings opportunities from Earnings Adjustment Mechanisms for meeting energy efficiency goals. The filing also reflects continuation of the revenue decoupling mechanism and the provisions pursuant to which the company recovers its purchased power and fuel costs from customers.

The filing includes supplemental information regarding electric rate plans for 2024 and 2025, which the company is not requesting, but would consider through settlement discussions. For purposes of illustration, rate increases of $853 million and $608 million effective January 2024 and 2025, respectively, were calculated based upon an assumed return on common equity of 10.0 percent and a common equity ratio of 50 percent.

CECONY – Gas

Effective period

January 2017 - December 2019

January 2020 – December 2022 (a)

Base rate changes

Yr. 1 – $(5) million (b)

Yr. 2 – $92 million

Yr. 3 – $90 million

Yr. 1 – $84 million (c)

Yr. 2 – $122 million (c)

Yr. 3 – $167 million (c)

Amortizations to income of net
regulatory (assets) and liabilities

Yr. 1 – $39 million

Yr. 2 – $37 million

Yr. 3 – $36 million

Yr. 1 – $45 million (d)

Yr. 2 – $43 million (d)

Yr. 3 – $10 million (d)

Other revenue sources

Retention of annual revenues from non-firm customers of up to $65 million and 15 percent of any such revenues above $65 million.

Potential incentives if performance targets related to gas leak backlog, leak prone pipe and service terminations are met:

Yr. 1 – $7 million

Yr. 2 – $8 million

Yr. 3 – $8 million

In 2017, 2018 and 2019, the company achieved incentives of $7 million, $6 million and $7 million, respectively, that, pursuant to the rate plan, was recorded ratably in earnings from 2018 to 2020. In 2018 and 2019, the company recorded incentives of $5 million and $9 million, respectively, for gas leak backlog, leak prone pipe and service terminations.

Retention of annual revenues from non-firm customers of up to $65 million and 15 percent of any such revenues above $65 million.

Potential earnings adjusted mechanism incentives for energy efficiency and other potential incentives of up to:

Yr. 1 - $20 million

Yr. 2 - $22 million

Yr. 3 - $25 million

In 2020 and 2021, the company recorded $3 million and $26 million of earnings adjustment mechanism incentives for energy efficiency, respectively.

In 2020 and 2021, the company recorded positive incentives of $13 million and $7 million, respectively. In 2021, the company reversed $6 million of positive incentives recorded in 2020 pursuant to an order issued by the NYSPSC in December 2021.

Revenue decoupling mechanisms

Continuation of reconciliation of actual to authorized gas delivery revenues.

In 2017, 2018 and 2019, the company deferred $3 million, $12 million and $10 million of regulatory liabilities, respectively.

Continuation of reconciliation of actual to authorized gas delivery revenues, modified to be calculated based upon revenue per customer class instead of revenue per customer.

In 2020 and 2021, the company deferred for recovery from customers $27 million and $100 million of revenues, respectively.

Recoverable energy costs

Continuation of current rate recovery of purchased gas costs.

Negative revenue adjustments

Potential charges if performance targets relating to service, safety and other matters are not met:

Yr. 1 – $68 million

Yr. 2 – $63 million

Yr. 3 – $70 million

In 2017 and 2018, the company recorded negative revenue adjustments of $5 million and $4 million, respectively. In 2019, the company did not record any negative revenue adjustments.

Potential charges if performance targets relating to service, safety and other matters are not met:

Yr. 1 - $81 million

Yr. 2 - $88 million

Yr. 3 - $96 million

In 2020 and 2021, the company did not record any negative revenue adjustments.

Cost reconciliations

In 2017, 2018 and 2019, the company deferred $2 million of net regulatory liabilities, $44 million of net regulatory assets and $18 million of net regulatory assets, respectively.

In 2020 and 2021, the company deferred $91 million and $14 million of net regulatory assets, respectively.

Net utility plant reconciliations

Target levels reflected in rates:

Gas average net plant target excluding AMI:

Yr. 1 – $5,844 million

Yr. 2 – $6,512 million

Yr. 3 – $7,177 million

AMI:

Yr. 1 – $27 million

Yr. 2 – $57 million

Yr. 3 – $100 million

In 2017 and 2018 the company deferred $2.2 million as regulatory liabilities. In 2019, the company deferred $1.7 million as a regulatory liability.

Target levels reflected in rates:

Gas average net plant target excluding AMI:

Yr. 1 - $8,108 million

Yr. 2 - $8,808 million

Yr. 3 - $9,510 million

AMI:

Yr. 1 - $142 million

Yr. 2 - $183 million

Yr. 3 - $211 million (h)

In 2020 and 2021, the company deferred $24.7 million and $26 million as a regulatory liability, respectively.

Average rate base

Yr. 1 – $4,841 million

Yr. 2 – $5,395 million

Yr. 3 – $6,005 million

Yr. 1 - $7,171 million

Yr. 2 - $7,911 million

Yr. 3 - $8,622 million

Weighted average cost of capital
(after-tax)

Yr. 1 – 6.82 percent

Yr. 2 – 6.80 percent

Yr. 3 – 6.73 percent

Yr. 1 to Yr. 3 – 6.61 percent

Authorized return on common equity

9.0 percent

8.8 percent

Actual return on common equity (i) (j)

Yr. 1 – 9.22 percent

Yr. 2 – 9.04 percent

Yr. 3 – 8.72 percent

Yr. 1 – 8.40 percent

Yr. 2 – 8.48 percent

Earnings sharing

Most earnings above an annual earnings threshold of 9.5 percent are to be applied to reduce regulatory assets for environmental remediation and other costs accumulated in the rate year.

In 2017, 2018 and 2019, the company had no earnings above the threshold.

Most earnings above an annual earnings threshold of 9.3 percent are to be applied to reduce regulatory assets for environmental remediation and other costs accumulated in the rate year.

In 2020 and 2021, the company had no earnings above the threshold.

Cost of long-term debt

Yr. 1 – 4.93 percent

Yr. 2 – 4.88 percent

Yr. 3 – 4.74 percent

Yr. 1 to Yr. 3 – 4.63 percent

Common equity ratio

48 percent

(a)In January 2020, the NYSPSC approved the October 2019 Joint Proposal for CECONY's gas rate plan for January 2020 through December 2022. If at the end of any semi-annual period ending June 30 and December 31, Con Edison’s investments in its non-utility businesses exceed 15 percent of its total consolidated revenues, assets or cash flow, or if the ratio of holding company debt to total consolidated debt rises above 20 percent, CECONY is required to notify the NYSPSC and submit a ring-fencing plan or a demonstration why additional ring-fencing measures (see Note U) are not necessary.

(b)The gas base rate decrease was offset by a $41 million increase resulting from the December 2016 expiration of a temporary credit under the prior rate plan.

(c)The gas base rate increases shown above will be implemented with increases of $47 million in Yr. 1; $176 million in Yr. 2; and $170 million in Yr. 3 in order to levelize customer bill impacts. Base rates reflect recovery by the company of certain costs of its energy efficiency program (Yr. 1 - $30 million; Yr. 2 - $37 million; and Yr. 3 - $40 million) over a ten-year period, including the overall pre-tax rate of return on such costs.

(d)Amounts reflect amortization of the remaining 2018 TCJA tax savings allocable to CECONY’s gas customers ($63 million) over a two year period ($32 million annually), the protected portion of the regulatory liability for excess deferred income taxes allocable to CECONY’s gas customers ($725 million) over the remaining lives of the related assets ($14 million in Yr. 1, $14 million in Yr. 2, and $12 million in Yr. 3) and the unprotected portion of the net regulatory liability ($107 million) over five years ($21 million annually)

(e)-(i) See footnotes (e) - (i) to the table under “CECONY Electric,” above.

(j) In November 2021, the NYSPSC issued an order that allowed CECONY to recover $7 million of late payment charges and fees that were not billed for the year ended December 31, 2020. The recalculated return on equity for 2020 which reflects the recovery of these fees is 8.56 percent.

In January 2022, CECONY filed a request with the NYSPSC for a gas rate increase of $503 million, effective January 2023. The filing reflects a return on common equity of 10.0 percent and a common equity ratio of 50 percent.

The filing includes supplemental information regarding gas rate plans for 2024 and 2025, which the company is not requesting, but would consider through settlement discussions. For purposes of illustration, rate increases of $234 million and $218 million effective January 2024 and 2025, respectively, were calculated based upon an assumed return on common equity of 10.0 percent and a common equity ratio of 50 percent.

CECONY – Steam

Effective period

January 2014 – December 2016 (a)

Base rate changes

Yr. 1 – $(22.4) million (b)

Yr. 2 – $19.8 million (b)

Yr. 3 – $20.3 million (b)

Yr. 4 – None

Yr. 5 – None

Yr. 6 – None

Yr. 7 – None

Yr. 8 – None

Amortizations to income of net
regulatory (assets) and liabilities

$37 million over three years

Recoverable energy costs

Current rate recovery of purchased power and fuel costs.

Negative revenue adjustments

Potential charges (up to $1 million annually) if certain steam performance targets are not met. In years 2014 through 2021, the company did not record any negative revenue adjustments.

Cost reconciliations (c)(d)

In 2014, 2015, 2016, 2017, 2018, 2019, 2020 and 2021, the company deferred $42 million of net regulatory liabilities, $17 million of net regulatory assets, $8 million and $14 million of net regulatory liabilities, $1 million of net regulatory assets, $8 million of net regulatory liabilities, $35 million of net regulatory assets and $32 million of net regulatory assets, respectively.

Net utility plant reconciliations

Target levels reflected in rates were:

Production:

Yr. 1 – $1,752 million

Yr. 2 – $1,732 million

Yr. 3 – $1,720 million

Distribution:

Yr. 1 – $6 million

Yr. 2 – $11 million

Yr. 3 – $25 million

The company reduced its regulatory liability by $0.1 million in 2014 and immaterial amounts in 2015 and 2016 and no deferrals were recorded in 2017, 2018, 2019. The company reduced its regulatory liability by $1.6 million in 2020 and by $0.6 million in 2021.

Average rate base

Yr. 1 – $1,511 million

Yr. 2 – $1,547 million

Yr. 3 – $1,604 million

Weighted average cost of capital (after-tax)

Yr. 1 – 7.10 percent

Yr. 2 – 7.13 percent

Yr. 3 – 7.21 percent

Authorized return on common equity

9.3 percent

Actual return on common equity (e)

Yr. 1 – 9.82 percent

Yr. 2 – 10.88 percent

Yr. 3 – 10.54 percent

Yr. 4 – 9.51 percent

Yr. 5 – 11.73 percent

Yr. 6 – 10.45 percent

Yr. 7 – 7.91 percent

Yr. 8 – 5.99 percent

Earnings sharing

Weather normalized earnings above an annual earnings threshold of 9.9 percent are to be applied to reduce regulatory assets for environmental remediation and other costs.

In 2014, the company had no earnings above the threshold. Actual earnings were $11.5 million and $7.8 million above the threshold in 2015 and 2016, respectively. In 2017, actual earnings were $8.5 million above the threshold, offset in part by a positive adjustment related to 2016 of $4 million. In 2018, actual earnings were $16.5 million above the threshold, and an additional $1.1 million related to 2017 was recorded. In 2019 actual earnings were $5 million above the threshold, offset in part by an adjustment related to 2018 of $2.3 million. In 2020 and 2021, the company had no earnings sharing above the threshold. Reserve adjustments of $0.4 million and $0.2 million were recorded in 2021 related to potential adjustment to the excess earnings sharing amounts for 2016 and 2018, respectively.

Cost of long-term debt

Yr. 1 – 5.17 percent

Yr. 2 – 5.23 percent

Yr. 3 – 5.39 percent

Common equity ratio

48 percent

(a)Rates determined pursuant to this rate plan continue in effect until a new rate plan is approved by the NYSPSC.

(b)The impact of these base rate changes was deferred which resulted in an $8 million regulatory liability at December 31, 2016.

(c)Deferrals for property taxes are limited to 90 percent of the difference from amounts reflected in rates, subject to an annual maximum for the remaining difference of not more than a 10 basis point impact on return on common equity.

(d)In addition, the NYSPSC staff has commenced a focused operations audit to investigate CECONY’s income tax accounting. Any NYSPSC ordered adjustment to CECONY’s income tax accounting is expected to be refunded to or collected from customers, as determined by the NYSPSC. CECONY’s historical inadvertent understatement of its calculation of total federal income tax expense for ratemaking purposes has not been addressed in the current steam rate plan. See "Other Regulatory Matters," below.

(e)Calculated in accordance with the earnings calculation method prescribed in the rate order.

In October 2021, O&R, the New York State Department of Public Service (NYSDPS) and other parties entered into a Joint Proposal for new electric and gas rate plans for the three-year period January 2022 through December 2024 (the Joint Proposal). The Joint Proposal is subject to NYSPSC approval. The Joint Proposal includes certain COVID-19 provisions, such as: recovery of 2020 late payment charges over three years ($2.8 million); reconciliation of late payment charges to amounts reflected in rates for years 2021 through 2024, with full recovery/refund via surcharge/sur-credit once the annual variance equals or exceeds 5 basis points of return on equity; and reconciliation of write-offs of customer accounts receivable balances to amounts reflected in rates from January 1, 2020 through December 31, 2024, with full recovery/refund via surcharge/sur-credit once the annual variance equals or exceeds 5 basis points of return on equity. The following tables contain a summary of the current and proposed rate plans.

O&R New York – Electric

Effective period (a)

January 2019 – December 2021

January 2022 – December 2024

Base rate changes

Yr. 1 – $13.4 million (b)

Yr. 2 – $8.0 million (b)

Yr. 3 – $5.8 million (b)

Yr. 1 – $4.9 million (i)

Yr. 2 – $16.2 million (i)

Yr. 3 – $23.1 million (i)

Amortizations to income of net
regulatory (assets) and liabilities

Yr. 1 – $(1.5) million (c)

Yr. 2 – $(1.5) million (c)

Yr. 3 – $(1.5) million (c)

Yr. 1 – $11.8 million (j)

Yr. 2 – $13.5 million (j)

Yr. 3 – $15.2 million (j)

Other revenue sources

Potential earnings adjustment mechanism incentives for peak reduction, energy efficiency, Distributed Energy Resources utilization and other potential incentives of up to:

Yr. 1 - $3.6 million

Yr. 2 - $4.0 million

Yr. 3 - $4.2 million

Potential incentive if performance target related to customer service is met: $0.5 million annually.

In 2019, 2020 and 2021, the company recorded $2.6 million, $1.9 million and $1.8 million of earnings adjustment mechanism incentives for energy efficiency, respectively. In 2019 and 2020, the company recorded $0.2 million and $0.5 million of incentives for customer service, respectively. In 2021, the company did not record incentives for customer service. In 2021, the company reversed the $0.5 million of incentives recorded in 2020 pursuant to the October 2021 Joint Proposal.

Potential earnings adjustment mechanism incentives for energy efficiency and other potential incentives of up to:
Yr. 1 – $3.3 million
Yr. 2 – $2.3 million
Yr. 3 – $4.0 million

Revenue decoupling mechanisms

Continuation of reconciliation of actual to authorized electric delivery revenues.

In 2019 and 2020, the company deferred $0.1 million and $6 million regulatory assets, respectively. In 2021, $10 million was deferred as regulatory liabilities.

Continuation of reconciliation of actual to authorized electric delivery revenues.

Recoverable energy costs

Continuation of current rate recovery of purchased power costs.

Continuation of current rate recovery of purchased power and fuel costs.

Negative revenue adjustments

Potential charges if certain performance targets relating to service, reliability and other matters are not met:

Yr. 1 - $4.4 million

Yr. 2 - $4.4 million

Yr. 3 - $4.5 million

In 2019,2020 and 2021, the company did not record any negative revenue adjustments.

Potential charges if certain performance targets relating to service, reliability, safety and other matters are not met:

Yr. 1 – $4.3 million

Yr. 2 – $4.4 million

Yr. 3 – $5.1 million

Cost reconciliations

Reconciliation of expenses for pension and other postretirement benefits, environmental remediation costs, property taxes (d), energy efficiency program (e), major storms, the impact of new laws and certain other costs to amounts reflected in rates (f).

In 2019, 2020 and 2021, the company deferred $4.3 million, $30.3 million and $24 million as net regulatory assets, respectively.

Reconciliation of expenses for pension and other postretirement benefits, environmental remediation costs, property taxes (d), energy efficiency program (k), major storms, and certain other costs to amounts reflected in rates.

Net utility plant reconciliations

Target levels reflected in rates were:

Electric average net plant target excluding advanced metering infrastructure (AMI):

Yr. 1 - $1,008 million

Yr. 2 - $1,032 million

Yr. 3 - $1,083 million

AMI (g):

Yr. 1 - $48 million

Yr. 2 - $58 million

Yr. 3 - $61 million

The company increased regulatory asset by an immaterial amount in 2019, $0.4 million as a regulatory liability in 2020 and an immaterial amount as a regulatory liability in 2021.

Target levels reflected in rates: Electric average net plant target

Yr. 1 – $1,175 million

Yr. 2 – $1,198 million

Yr. 3 – $1,304 million

Average rate base

Yr. 1 – $878 million

Yr. 2 – $906 million

Yr. 3 – $948 million

Yr. 1 – $1,021 million

Yr. 2 – $1,044 million

Yr. 3 – $1,144 million

Weighted average cost of capital (after-tax)

Yr. 1 – 6.97 percent

Yr. 2 – 6.96 percent

Yr. 3 – 6.96 percent

Yr. 1 – 6.77 percent

Yr. 2 – 6.73 percent

Yr. 3 – 6.72 percent

Authorized return on common equity

9.0 percent

9.2 percent

Actual return on common equity (h)

Yr. 1 – 9.6 percent

Yr. 2 – 8.76 percent

Yr. 3 – 9.16 percent

Earnings sharing

Most earnings above an annual earnings threshold of 9.6 percent are to be applied to reduce regulatory assets for environmental remediation and other costs accumulated in the rate year.

In 2019, 2020 and 2021, earnings did not exceed the earnings threshold.

Most earnings above an annual earnings threshold of 9.7 percent are to be applied to reduce regulatory assets for environmental remediation and other costs accumulated in the rate year.

Cost of long-term debt

Yr. 1 – 5.17 percent

Yr. 2 – 5.14 percent

Yr. 3 – 5.14 percent

Yr. 1 – 4.58 percent

Yr. 2 – 4.51 percent

Yr. 3 – 4.49 percent

Common equity ratio

48 percent

(a)If at the end of any year, Con Edison’s investments in its non-utility businesses exceed 15 percent of Con Edison’s total consolidated revenues, assets or cash flow, or if the ratio of holding company debt to total consolidated debt rises above 20 percent, O&R is required to notify the NYSPSC and submit a ring-fencing plan or a demonstration why additional ring-fencing measures (see Note U) are not necessary.

(b)The electric base rate increases were implemented with increases of: Yr. 1 - $8.6 million; Yr. 2 - $12.1 million; and Yr. 3 - $12.2 million.

(c)Reflects amortization of, among other things, the company’s net benefits under the TCJA prior to January 1, 2019, amortization of net regulatory liability for future income taxes and reduction of previously incurred regulatory assets for environmental remediation costs. Also, for electric, reflects amortization over a six year period of previously incurred incremental major storm costs. See "Other Regulatory Matters," below.

(d)Deferrals for property taxes are limited to 90 percent of the difference from amounts reflected in rates, subject to an annual maximum for the remaining difference of not more than a maximum number of basis points impact on return on common equity: Yr. 1 - 10.0 basis points; Yr. 2 - 7.5 basis points; and Yr. 3 - 5.0 basis points.

(e)Energy efficiency costs are expensed as incurred. Such costs are subject to a downward-only reconciliation over the terms of the electric and gas rate plans. The company will defer for the benefit of customers any cumulative shortfall over the terms of the electric and gas rate plans between actual expenditures and the levels provided in rates.

(f)In addition, the NYSPSC staff has commenced a focused operations audit to investigate O&R’s income tax accounting. Any NYSPSC ordered adjustment to O&R’s income tax accounting is expected to be refunded to or collected from customers, as determined by the NYSPSC. See "Other Regulatory Matters," below.

(g)Net plant reconciliation for AMI expenditures will be implemented for a single category of AMI capital expenditures that includes amounts allocated to both electric and gas customers.

(h)Calculated in accordance with the earnings calculation method prescribed in the rate order.

(i)The Joint Proposal recommends that these base rate changes may be implemented with increases of: Yr. 1 - $11.7 million; Yr. 2 - $11.7 million; and Yr. 3 - $11.7 million.

(j)Reflects amortization of, among other things, previously incurred incremental deferred storm costs over a five-year period. See "Other Regulatory Matters," below

(k)Energy efficiency costs are expensed as incurred. Such costs are subject to a cumulative reconciliation that is evenly distributed over the term of the rate plan subject to the caps set forth in the January 2020 NYSPSC New Efficiency New York (“NENY”) order. If the NYSPSC modifies O&R's NENY budgets during the rate term, such modifications will be reflected at the time of the cumulative reconciliations.

O&R New York – Gas

Effective period (a)

January 2019 – December 2021

January 2022 – December 2024

Base rate changes

Yr. 1 – $(7.5) million (b)

Yr. 2 – $3.6 million (b)

Yr. 3 – $0.7 million (b)

Yr. 1 – $0.7 million (i)

Yr. 2 – $7.4 million (i)

Yr. 3 – $9.9 million (i)

Amortization to income of net regulatory (assets) and liabilities

Yr. 1 – $1.8 million (c)

Yr. 2 – $1.8 million (c)

Yr. 3 – $1.8 million (c)

Yr. 1 – $0.8 million

Yr. 2 – $0.7 million

Yr. 3 – $0.3 million

Other revenue sources

Continuation of retention of annual revenues from non-firm customers of up to $4.0 million, with variances to be shared 80 percent by customers and 20 percent by company.

Potential earnings adjustment mechanism incentives of up to $0.3 million annually.

Potential incentives if performance targets related to gas leak backlog, leak prone pipe, emergency response, damage prevention and customer service are met: Yr. 1 - $1.2 million; Yr. 2 - $1.3 million; and Yr. 3 - $1.3 million.

In 2019, 2020 and 2021, the company recorded $0.5 million of earnings adjustment mechanism incentives for energy efficiency. In 2019, 2020 and 2021, the company recorded $0.7 million, $0.3 million and $0.2 million of positive incentives, respectively. In 2021, the company reversed $0.3 million of positive incentives recorded in 2020 pursuant to the October 2021 Joint Proposal.

Potential earnings adjustment mechanism incentives for energy efficiency and other potential incentives of up to:
Yr. 1 - $0.2 million
Yr. 2 - $0.2 million
Yr. 3 - $0.4 million

Potential positive rate adjustment for gas safety and performance of up to:

Yr. 1 – $1.2 million

Yr. 2 – $1.3 million

Yr. 3 – $1.4 million

Revenue decoupling mechanisms

Continuation of reconciliation of actual to authorized gas delivery revenues.

In 2019 and 2020, the company deferred $0.8 million and $0.5 million as regulatory assets, respectively. In 2021, $4 million was deferred as a regulatory liability.

Continuation of reconciliation of actual to authorized gas delivery revenues.

Recoverable energy costs

Continuation of current rate recovery of purchased gas costs.

Negative revenue adjustments

Potential charges if performance targets relating to service, safety and other matters are not met: Yr. 1 - $5.5 million; Yr. 2 - $5.7 million; and Yr. 3 - $6.0 million.

In 2019, the company recorded a $0.2 million. In 2020 and 2021, the company recorded an immaterial amount of negative revenue adjustments.

Potential charges if performance targets relating to service, safety and other matters are not met:

Yr. 1 – $6.3 million

Yr. 2 – $6.7 million

Yr. 3 – $7.3 million

Cost reconciliations

Reconciliation of expenses for pension and other postretirement benefits, environmental remediation costs, property taxes (d), energy efficiency program (e), the impact of new laws and certain other costs to amounts reflected in rates (f).

In 2019 and 2020, the company deferred $6 million as net regulatory liabilities, $1.8 million as net regulatory assets, respectively. In 2021 $8 million were deferred as regulatory assets.

Reconciliation of expenses for pension and other postretirement benefits, environmental remediation costs, property taxes (j), energy efficiency program (k), major storms and certain other costs to amounts reflected in rates.

Net utility plant reconciliations

Target levels reflected in rates were:

Gas average net plant target excluding AMI:

Yr. 1 - $593 million

Yr. 2 - $611 million

Yr. 3 - $632 million

AMI (g):

Yr. 1 - $20 million

Yr. 2 - $24 million

Yr. 3 - $25 million

In 2019, 2020 and 2021, the company deferred immaterial amounts as regulatory assets.

Target levels reflected in rates: Gas average net plant target

Yr. 1 – $720 million

Yr. 2 – $761 million

Yr. 3 – $803 million

Average rate base

Yr. 1 – $454 million

Yr. 2 – $476 million

Yr. 3 – $498 million

Yr. 1 – $566 million

Yr. 2 – $607 million

Yr. 3 – $649 million

Weighted average cost of capital (after-tax)

Yr. 1 – 6.97 percent

Yr. 2 – 6.96 percent

Yr. 3 – 6.96 percent

Yr. 1 – 6.77 percent

Yr. 2 – 6.73 percent

Yr. 3 – 6.72 percent

Authorized return on common equity

9.0 percent

9.2 percent

Actual return on common equity (h)

Yr. 1 – 8.90 percent

Yr. 2 – 9.58 percent

Yr. 3 – 10.11 percent

Earnings sharing

Most earnings above an annual earnings threshold of 9.6 percent are to be applied to reduce regulatory assets for environmental remediation and other costs accumulated in the rate year. In 2019 and 2020, earnings did not exceed the earnings threshold. In 2021, actual earnings were $1.7 million above the threshold.

Most earnings above an annual earnings threshold of 9.7 percent are to be applied to reduce regulatory assets for environmental remediation and other costs accumulated in the rate year.

Cost of long-term debt

Yr. 1 – 5.17 percent

Yr. 2 – 5.14 percent

Yr. 3 – 5.14 percent

Yr. 1 – 4.58 percent

Yr. 2 – 4.51 percent

Yr. 3 – 4.49 percent

Common equity ratio

0.48

48 percent

(b)The gas base rate changes were implemented with changes of: Yr. 1 - $(5.9) million; Yr. 2 - $1.0 million; and Yr. 3 - $1.0 million.

(c)-(h) See footnotes (c) - (h) to the table under “O&R New York - Electric,” above.

(i) The Joint Proposal recommends that these base rate changes may be implemented with increases of: Yr. 1 – $4.4 million; Yr. 2 - $4.4 million; and Yr. 3 - $4.4 million.

(j) Deferrals for property taxes are limited to 90 percent of the difference from amounts reflected in rates, subject to an annual maximum for the remaining difference of not more than a maximum number of basis points impact on return on common equity: Yr. 1 - 10.0 basis points; Yr. 2 - 7.5 basis points; and Yr. 3 - 5.0 basis points.

(k) See footnote (l) to the table under "O&R New York - Electric," above.

Rockland Electric Company (RECO)

In December 2021, the NJBPU approved an electric rate increase, effective January 1, 2022, of $9.65 million for RECO. The following table contains a summary of the terms of the distribution rate plans.

RECO

Effective period

March 2017 – January 2020

February 2020 – December 2021

January 2022

Base rate changes

$1.7 million

$12 million

$9.65 million

Amortization to income of net
regulatory (assets) and liabilities

$0.2 million over three years and continuation of $(25.6) million of deferred storm costs over four years which expired on July 31, 2018 (a)

$4.8 million over four years.

$0.2 million over three years and $9.2 million of deferred storm costs over a three-year period (excluding $2.4 million of costs for Tropical Storm Henri which will be deferred over a three year period in base rates) and continuation of $10 million over 3 years

COVID-19 costs

Recovery of RECO’s COVID-19 related expenditures will be addressed in a separate petition

Recoverable energy costs

Current rate recovery of purchased power costs.

Cost reconciliations

None

Reconciliation of uncollectible accounts, Demand Side Management and Clean Energy Program.

Average rate base

$178.7 million

$229.9 million

$262.8 million

Weighted average cost of capital
(after-tax)

7.47 percent

7.11 percent

7.08 percent

Authorized return on common equity

9.6 percent

9.5 percent

9.6 percent

Actual return on common equity

Yr. 1 – 7.5 percent

Yr. 2 – 5.7 percent

Yr. 1 – 5.4 percent

Yr. 2 – 2.3 percent

Cost of long-term debt

5.37 percent

4.88 percent

4.74 percent

Common equity ratio

49.7 percent

48.32 percent

48.51 percent

(a)In January 2016, the NJBPU approved RECO’s plan to spend $15.7 million in capital over three years to harden its electric system against storms, the costs of which RECO, beginning in 2017, is collecting through a customer surcharge.

In January 2022, RECO filed a request with FERC for an increase to its annual transmission revenue requirement from $16.9 million to $20.4 million, effective March 30, 2022. The filing reflects a return on common equity of 11.04 percent and a common equity ratio of 47 percent.

COVID - 19 Regulatory Matters

Governors, public utility commissions and other regulatory agencies in the states in which the Utilities operate have issued orders related to the COVID-19 pandemic that impact the Utilities as described below.

New York State Regulation

In March 2020, former New York State Governor Cuomo declared a State Disaster Emergency for the State of New York due to the COVID-19 pandemic and signed the "New York State on PAUSE" executive order that temporarily closed all non-essential businesses statewide. The former Governor then lifted these closures over time and ended the emergency declaration in June 2021. As a result of the emergency declaration, and due to economic conditions, the NYSPSC and the Utilities have worked to mitigate the potential impact of the COVID-19 pandemic on the Utilities, their customers and other stakeholders.

In March 2020, the Utilities began suspending service disconnections, certain collection notices, final bill collection agency activity, new late payment charges and certain other fees for all customers. The Utilities also began providing payment extensions for all customers that were scheduled to be disconnected prior to the start of the COVID-19 pandemic. In June 2020, the state of NY enacted a law prohibiting NY utilities, including CECONY and O&R, from disconnecting residential customers, and starting in May 2021 small business customers, during the COVID-19 state of emergency, which ended in June 2021. In addition, such prohibitions applied for an additional 180 days after the state of emergency ended (December 21, 2021) for residential and small business customers who experienced a change in financial circumstances due to the COVID-19 pandemic. In November 2021, the NYSPSC issued an order establishing a surcharge recovery mechanism for CECONY to collect, commencing December 1, 2021 through December 31, 2022, $43 million and $7 million for electric and gas, respectively, of late payment charges and fees that were not billed for the year ended December 31, 2020. The company recorded such amounts as revenue for the year ended December 31, 2021, as permitted under the accounting rules for regulated utilities, and also accrued such amounts as a current asset at December 31, 2021. Pursuant to the November 2021 order, the company also established a recovery mechanism for CECONY to collect, commencing January 2023 through December 2023, $19 million and $4 million for electric and gas, respectively, of late payment charges and fees that were not billed for the year ended December 31, 2021 and the company recorded such amounts as revenue for the year ended December 31, 2021, as permitted under the accounting rules for regulated utilities, and also accrued such amounts as a current asset at December 31, 2021. In addition, pursuant to the November 2021 order, CECONY established a reserve of $7 million toward addressing customer arrearages for the year ended December 31, 2021. The order also established a surcharge recovery or surcredit mechanism for any late payment charges and fee deferrals, subject to offsetting related savings resulting from the COVID-19 pandemic, for 2022 starting in January of 2024 over a twelve-month period. CECONY resumed late payment charges for commercial and residential customers who have not experienced a change in financial circumstances due to the COVID-19 pandemic on September 3, 2021 and October 1, 2021, respectively. O&R resumed late payment charges for commercial and residential customers who have not experienced a change in financial circumstances due to the COVID-19 pandemic on October 1, 2021.

The Utilities’ New York rate plans allow them to defer costs resulting from a change in legislation, regulation and related actions that have taken effect during the term of the rate plans once the costs exceed a specified threshold. The total reserve increases to the allowance for uncollectible accounts from January 1, 2020 through December 31, 2021 reflecting the impact of the COVID-19 pandemic for CECONY electric and gas operations and O&R electric and gas operations were $239 million and $7 million, respectively, and were deferred pursuant to the legislative, regulatory and related actions provisions of the rate plans as a result of the New York State on PAUSE and related executive orders, that have since been lifted, as described above. The Utilities’ NY rate plans also provide for an allowance for write-offs of customer accounts receivable balances. The above amounts deferred pursuant to the legislative, regulatory and related actions provisions were reduced by the amount that the actual write-offs of customer accounts receivable balances were below the allowance reflected in rates which differences were $8 million and $3 million for CECONY and O&R, respectively, from March 1, 2020 through December 31, 2021.

In June 2020, the NYSPSC directed CECONY to implement a summer cooling credit program to help mitigate the cost of staying home and operating air conditioning for health-vulnerable low-income customers due to the limited availability of public cooling facilities as a result of the COVID-19 social distancing measures. The $63.4 million cost of the program is being recovered over a five-year period that began January 2021.

As of December 31, 2020, CECONY deferred, for New York City residential customers, $54.9 million of higher summer generation capacity supply costs. CECONY recovered such costs from customers as of October 31, 2021.

In April 2021, New York State passed a law that creates a program that allows eligible residential renters in New York State who require assistance with rent and utility bills to have up to twelve months of electric and gas utility bill arrears forgiven, provided that such arrears were accrued on or after March 13, 2020. The program will be administered by the State Office of Temporary Disability Assistance in coordination with the NYSDPS. Under the program, CECONY and O&R would qualify for a refundable tax credit for New York State gross-receipts tax equal to the amount of arrears waived by the Utilities in the year that the arrears are waived and certified by the NYSPSC.

In May 2021, CECONY and O&R, along with other large NY utilities, submitted joint comments to the NYSDPS' February 2021 report on New York State’s Energy Affordability Policy. The report recommends, among other things, that residential and commercial customers’ late payment fees and interest on deferred payment agreements be waived until two years after the expiration of the NY State moratorium on utility terminations (the moratorium expired on December 21, 2021) and each utility develop an arrears management program to mitigate the financial burdens of the COVID-19 pandemic on NY households and that program costs be shared, perhaps equally, between shareholders and customers. The May 2021 joint comments stated that it is not necessary for the NYSPSC to adopt

the report’s COVID-19 related recommendations because NY State already passed laws that address the issues in the report, as described above.

The Utilities’ rate plans have revenue decoupling mechanisms in their NY electric and gas businesses that largely reconcile actual energy delivery revenues to the authorized delivery revenues approved by the NYSPSC per month and reconcile the deferred balances semi-annually under CECONY's electric rate plan (January through June and July through December, respectively) and annually under CECONY's gas rate plan and O&R's NY electric and gas rate plans (January through December). Differences are accrued with interest each month for CECONY's and O&R's NY electric customers and after the annual deferral period ends for CECONY's and O&R's NY gas customers for refund to, or recovery from customers, as applicable. Generally, the refund to or recovery from customers begins August and February of each year over an ensuing six-month period for CECONY's electric customers and February of each year over an ensuing twelve-month period for CECONY's gas and O&R's NY electric and gas customers.

New Jersey State Regulation

In March 2020, New Jersey Governor Murphy declared a Public Health Emergency and State of Emergency for the State of NJ. In June 2021, the Governor ended the emergency declaration. As a result of the emergency declaration, and due to economic conditions, the NJBPU and RECO have worked to mitigate the potential impact of the COVID-19 pandemic on RECO, its customers and other stakeholders. In March 2020, RECO began suspending late payment charges, terminations for non-payment, and no access fees during the COVID-19 pandemic. The suspension of these fees continued through July 31, 2021 and are not material.

In July 2020, the NJBPU authorized RECO and other NJ utilities to create a COVID-19-related regulatory asset by deferring prudently incurred incremental costs related to the COVID-19 pandemic beginning on March 9, 2020, and has extended such deferrals through December 31, 2022. RECO deferred net incremental COVID-19 related costs of $0.9 million through December 31, 2021.

Other Regulatory Matters

In August 2018, the NYSPSC ordered CECONY to begin on January 1, 2019 to credit the company's electric and gas customers, and to begin on October 1, 2018 to credit its steam customers, with the net benefits of the federal Tax Cuts and Jobs Act of 2017 (TCJA) as measured based on amounts reflected in its rate plans prior to the enactment of the TCJA in December 2017. The net benefits include the revenue requirement impact of the reduction in the corporate federal income tax rate to 21 percent, the elimination for utilities of bonus depreciation and the amortization of excess deferred federal income taxes.

CECONY, under its electric rate plan that was approved in January 2020, is amortizing its TCJA net benefits prior to January 1, 2019 allocable to its electric customers ($377 million) over a three-year period, the IRS “protected” portion of its net regulatory liability for future income taxes related to certain accelerated tax depreciation benefits allocable to its electric customers ($1,663 million) over the remaining lives of the related assets and the remainder, or “unprotected” portion of the net regulatory liability allocable to its electric customers ($784 million) over a five-year period. CECONY, under its gas rate plan that was approved in January 2020, amortized TCJA net benefits prior to January 1, 2019 allocable to its gas customers ($63 million) over a two-year period. The protected portion of its net regulatory liability for future income taxes allocable to its gas customers ($725 million) is being amortized over the remaining lives of the related assets and the unprotected portion of the net regulatory liability allocable to its gas customers ($107 million) over a five-year period.

CECONY’s net regulatory liability for future income taxes, including both the protected and unprotected portions, allocable to the company’s steam customers ($185 million) is being amortized over the remaining lives of the related assets (with the amortization period for the unprotected portion subject to review in its next steam rate proceeding).

O&R, under its current electric and gas rate plans, has reflected its TCJA net benefits in its electric and gas rates beginning as of January 1, 2019. Under the rate plans, O&R amortized its net benefits prior to January 1, 2019 ($22 million) over a three-year period. The protected portion of its net regulatory liability for future income taxes ($123 million) is being amortized over the remaining lives of the related assets. See "Rate Plans" above. Pursuant to the October 2021 Joint Proposal, O&R will amortize the remaining unprotected portion of its net regulatory liability for future income taxes ($34 million) over a six-year period beginning January 1, 2022.

In January 2018, the NYSPSC issued an order initiating a focused operations audit of the Utilities’ financial accounting for income taxes. The audit is investigating the Utilities’ inadvertent understatement of a portion, the amount of which may be material, of their calculation of total federal income tax expense for ratemaking purposes. The understatement was related to the calculation of plant retirement-related cost of removal. As a result of such

understatement, the Utilities accumulated significant income tax regulatory assets that were not reflected in O&R’s rate plans prior to 2014, CECONY’s electric and gas rate plans prior to 2015 and 2016, respectively, and is currently not reflected in CECONY’s steam rate plan. This understatement of historical income tax expense materially reduced the amount of revenue collected from the Utilities' customers in the past. As part of the audit, the Utilities plan to pursue a private letter ruling from the Internal Revenue Service (IRS) that is expected to confirm, among other things, that in order to comply with IRS normalization rules, such understatement may not be corrected through a write-down of a portion of the regulatory asset and must be corrected through an increase in future years’ revenue requirements. The regulatory asset ($1,176 million and $26 million for CECONY and O&R, respectively, as of December 31, 2021 and $1,200 million and $29 million for CECONY and O&R, respectively, as of December 31, 2020) is netted against the future income tax regulatory liability on the Companies’ consolidated balance sheet. The Utilities are unable to estimate the amount or range of their possible loss, if any, related to this matter. At December 31, 2021, the Utilities have not accrued a liability related to this matter.

In October 2020, the NYSPSC issued an order instituting a proceeding to consider requiring NY’s large, investor-owned utilities, including CECONY and O&R, to annually disclose what risks climate change poses to their companies, investors and customers going forward. The order notes that some holding companies, including Con Edison, already disclose climate change risks at the holding company level, but states that the NYSPSC believes that climate-related risk disclosures should be issued specific to the operating companies in NY, such as CECONY and O&R, and that such climate-related risk disclosures should be included annually with the utilities’ financial reports. In December 2020, CECONY and O&R, along with other large NY utilities, filed comments supporting climate change risk disclosures in annual reports filed with the NYSPSC and recommended the use of an industry-specific template.

In May 2020, the president of the United States issued the "Securing the United States Bulk-Power System" executive order, which has since expired. The executive order declared threats to the bulk-power system by foreign adversaries constitute a national emergency and prohibits the acquisition, importation, transfer or installation of certain bulk-power system electric equipment that is sourced from foreign adversaries. In April 2021 and November 2021, the Department of Energy (DOE) issued requests for information to: (1) assist the DOE in developing additional orders and/or regulations to secure the United States’ critical electric infrastructure and (2) enable the DOE to perform an energy sector supply chain review. In September 2021, the Cybersecurity and Infrastructure Security Agency and the National Institute of Standards and Technology issued preliminary cybersecurity goals for critical infrastructure control systems, with final goals to be issued by September 2022. The Companies are unable to predict the impact on them of any orders or regulations that may be adopted regarding critical infrastructure.

In July 2021, the NYSPSC approved a settlement agreement among CECONY, O&R and the NYSDPS that fully resolves all issues and allegations that have been raised or could have been raised by the NYSPSC against CECONY and O&R with respect to: (1) the July 2018 rupture of a CECONY steam main located on Fifth Avenue and 21st Street in Manhattan (the “2018 Steam Incident”); (2) the July 2019 electric service interruptions to approximately 72,000 CECONY customers on the west side of Manhattan and to approximately 30,000 CECONY customers primarily in the Flatbush area of Brooklyn (the “2019 Manhattan and Brooklyn Outages”); (3) the August 2020 electric service interruptions to approximately 330,000 CECONY customers and approximately 200,000 O&R customers following Tropical Storm Isaias (the “Tropical Storm Isaias Outages”) and (4) the August 2020 electric service interruptions to approximately 190,000 customers resulting from faults at CECONY’s Rainey substation following Tropical Storm Isaias (the “Rainey Outages”). Pursuant to the settlement agreement, CECONY and O&R agreed to a total settlement amount of $75.1 million and $7.0 million, respectively. CECONY and O&R agreed to forgo recovery from customers of $25 million and $2.5 million, respectively, associated with the return on existing storm hardening assets beginning with the next rate plan for each utility (over a period of 35 years). CECONY and O&R also agreed to incur ongoing operations and maintenance costs of up to $15.8 million and $2.9 million, respectively, for, among other things, costs to maintain a certain level of contractor and vehicle storm emergency support and storm preparation audits. For CECONY, the settlement agreement includes previously incurred or accrued costs of $34.3 million, including negative revenue adjustments of $5 million for the Rainey Outages and $15 million for the 2019 Manhattan and Brooklyn Outages and $14.3 million in costs to reimburse customers for food and medicine spoilage and other previously incurred expenses related to Tropical Storm Isaias and the 2018 Steam Incident. For O&R, the settlement agreement includes previously incurred costs of $1.6 million to reimburse customers for food and medicine spoilage and other expenses related to the Tropical Storm Isaias Outages.

Additional information relating to the 2018 Steam Incident, 2019 Manhattan and Brooklyn Outages and Tropical Storm Isaias Outages follow.

2018 Steam Incident: In July 2018, the NYSPSC commenced an investigation into the rupture of a CECONY steam main located on Fifth Avenue and 21st Street in Manhattan. Debris from the incident included dirt and mud containing asbestos. The response to the incident required the closing of buildings and streets for various periods.

As of June 30, 2021, with respect to the incident, the company incurred operating costs of $17 million for property damage, clean-up and other response costs and invested $9 million in capital and retirement costs. During the second quarter of 2020, the company accrued a $3 million liability related to this matter. As described above, in July 2021, CECONY entered into a settlement agreement that fully resolves all issues and allegations with respect to this matter.

2019 Manhattan and Brooklyn Outages: In July 2019, electric service was interrupted to approximately 72,000 CECONY customers on the west side of Manhattan. Also in July 2019, electric service was interrupted to approximately 30,000 CECONY customers primarily in the Flatbush area of Brooklyn. In November 2020, the NYSPSC issued an order in its proceedings investigating these July 2019 power outages ordering CECONY to show cause why the NYSPSC should not commence a review of the prudency of CECONY’s actions and/or omissions prior to, during, and after the July 2019 outages in Manhattan and Brooklyn, and pursue civil or administrative penalties in the amount of up to $24.8 million for CECONY’s alleged failure to comply with certain requirements. The order further indicated that should the NYSPSC confirm some or all of the apparent violations identified in the order or other orders issued by the NYSPSC in the future in connection with this proceeding, and should such confirmed violations be classified as findings of repeated violations of the Public Service Law or rules or regulations adopted pursuant thereto that demonstrate a failure of CECONY to continue to provide safe and adequate service, the NYSPSC would be authorized to commence a proceeding under Public Service Law Section 68(2) to revoke or modify CECONY’s certificate as it relates to its service territory or any portion thereof.

In December 2020, CECONY filed a response to the NYSPSC order demonstrating why the NYSPSC should not commence a penalty or prudence action against CECONY. CECONY stated that the NYSPSC order misapplied Section 25-a of the Public Service Law by ignoring the reasonable compliance standard under the statute and instead, was imposing a strict liability standard. For both outages, CECONY presented evidence that it either had complied or reasonably complied with NYSPSC requirements. With respect to the Manhattan outage, CECONY stated that a prudency proceeding was not justified because CECONY’s actions with respect to the Manhattan outage were reasonable based on the information the company had at the time. With respect to the Brooklyn outage, the company stated that the order failed to allege that improper company actions caused the outage. During 2019, CECONY recorded negative revenue adjustments associated with reliability performance provisions of $15 million in aggregate primarily related to these outages. As described above, in July 2021, CECONY entered into a settlement agreement that fully resolves all issues and allegations with respect to this matter.

Tropical Storm Isaias Outages: In August 2020, Tropical Storm Isaias caused significant damage to the Utilities’ electric distribution systems and interrupted service to approximately 330,000 CECONY electric customers and approximately 200,000 O&R electric customers. As of December 31, 2021, CECONY incurred costs for Tropical Storm Isaias of $174 million (including $84 million of operation and maintenance expenses charged against a storm reserve pursuant to its electric rate plan, $64 million of capital investments and $26 million (including $7.5 million for food and medicine spoilage claims) of operation and maintenance expenses). As of December 31, 2021, O&R incurred costs for Tropical Storm Isaias of $26.5 million (including $19.2 million of operation and maintenance expenses charged against a storm reserve pursuant to its NY electric rate plan, $5.7 million of capital investments and $1.6 million for food and medicine spoilage claims). As of December 31, 2021, RECO incurred costs for Tropical Storm Isaias of $11.4 million (including $7.6 million of operation and maintenance expenses charged against a storm reserve pursuant to its rate plan, $2.5 million of capital investments and $1.3 million for food and medicine spoilage claims). The Utilities’ electric rate plans provide for recovery of operating costs and capital investments under different provisions. The Utilities’ incremental operating costs attributable to storms are to be deferred for recovery as a regulatory asset under their electric rate plans, while capital investments, up to specified levels, are reflected in rates under their electric rate plans. The provisions of the Utilities’ NY electric rate plans that impose negative revenue adjustments for operating performance provide for exceptions for major storms and catastrophic events beyond the control of the companies, including natural disasters such as hurricanes and floods.

In November 2020, the NYSPSC issued an order in its proceedings investigating the NY utilities’ preparation for and response to Tropical Storm Isaias that ordered the Utilities to show cause why (i) civil penalties or appropriate injunctive relief should not be imposed against CECONY (in the amount of up to $102.3 million relating to 33 alleged violations) and against O&R (in the amount of up to $19 million relating to 38 alleged violations) to remedy such noncompliance, and (ii) a prudence proceeding should not be commenced against the Utilities for potentially imprudent expenditures of ratepayer funds related to the matter. The order stated that given the continuing nature of the investigation of this matter by the NYSDPS, the NYSPSC may amend the order to include any subsequently determined apparent violations identified by the NYSDPS. In addition, the order indicated that should the NYSPSC confirm some or all of the apparent violations identified in the order or other orders issued by the NYSPSC in the future in connection with this proceeding, and should such respective confirmed violations be classified as findings of repeated violations of the Public Service Law or rules or regulations adopted pursuant thereto that demonstrate a failure of CECONY and/or O&R to continue to provide safe and adequate service, the NYSPSC would be

authorized to commence a proceeding under Public Service Law Section 68(2) to revoke or modify CECONY’s and/or O&R’s certificate as it relates to its service territory or any portion thereof.

In December 2020, CECONY and O&R filed responses to the NYSPSC order demonstrating why the NYSPSC should not commence penalty or prudence actions against them. The Utilities stated that the NYSPSC orders misapplied Section 25-a of the Public Service Law by ignoring the reasonable compliance standard under the statute and instead, was imposing a strict liability standard. CECONY and O&R also presented evidence that the order either misrepresented the applicable requirements or ignored that the Utilities were acting pursuant to practices approved by the NYSPSC. Finally, CECONY and O&R stated that there was no basis to commence a prudence proceeding because the Utilities acted reasonably based on the information available and the circumstances at the time. As described above, in July 2021, CECONY and O&R entered into a settlement agreement that fully resolves all issues and allegations with respect to this matter.

Regulatory Assets and Liabilities

Regulatory assets and liabilities at December 31, 2021 and 2020 were comprised of the following items:


	Con Edison		CECONY
(Millions of Dollars)	2021	2020	2021	2020
Regulatory assets
Unrecognized pension and other postretirement costs	$128	$3,241	$110	$3,065
Environmental remediation costs	938	865	860	791
Pension and other postretirement benefits deferrals	496	315	435	272
Revenue taxes	395	356	378	342
System peak reduction and energy efficiency programs	285	124	284	124
COVID - 19 Deferrals	282	115	277	113
Deferred storm costs	276	195	158	83
Property tax reconciliation	202	241	202	239
MTA power reliability deferral	140	188	140	188
Deferred derivative losses	51	120	45	111
Municipal infrastructure support costs	44	62	44	62
Brooklyn Queens demand management program	36	36	36	36
Meadowlands heater odorization project	29	32	29	32
Non-wire alternative projects	23	18	23	18
Preferred stock redemption	20	21	20	21
Unamortized loss on reacquired debt	16	21	14	19
Recoverable REV demonstration project costs	16	20	15	18
Gate station upgrade project	14	25	14	25
Other	248	200	232	186
Regulatory assets – noncurrent	3,639	6,195	3,316	5,745
Deferred derivative losses	141	190	133	177
Recoverable energy costs	65	76	55	67
Regulatory assets – current	206	266	188	244
Total Regulatory Assets	$3,845	$6,461	$3,504	$5,989
Regulatory liabilities
Future income tax*	$1,984	$2,207	$1,840	$2,062
Allowance for cost of removal less salvage	1,199	1,090	1,033	932
Net unbilled revenue deferrals	209	198	209	198
TCJA net benefits	125	295	123	286
Net proceeds from sale of property	103	137	103	137
Pension and other postretirement benefit deferrals	102	85	55	46
System benefit charge carrying charge	70	64	63	57
Deferred derivative gains - long term	61	5	55	4
Property tax refunds	35	36	35	35
Unrecognized other postretirement costs	32	11	—	—
BQDM and REV Demo reconciliations	25	27	22	25
Sales and use tax refunds	17	16	16	16
Energy efficiency portfolio standard unencumbered funds	15	1	19	—
Earnings sharing - electric, gas and steam	13	15	10	10
Settlement of gas proceedings	12	21	12	21
Workers’ compensation	8	3	8	3
Settlement of prudence proceeding	6	5	6	5
Other	365	297	312	257
Regulatory liabilities – noncurrent	4,381	4,513	3,921	4,094
Refundable energy costs	32	28	2	4
Deferred derivative gains	142	8	132	7
Revenue decoupling mechanism	11	—	—	—
Regulatory liabilities—current	185	36	134	11
Total Regulatory Liabilities	$4,566	$4,549	$4,055	$4,105

* See "Federal Income Tax" in Note A, "Other Regulatory Matters," above, and Note L.

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

MTA power reliability deferral represents CECONY’s costs in excess of those reflected in its prior electric rate plan to take certain actions relating to the electrical equipment that serves the Metropolitan Transportation Authority (MTA) subway system. The company is recovering this regulatory asset pursuant to its current electric rate plan. See footnote (d) to the CECONY - Electric table under “Rate Plans,” above.

Deferred storm costs represent response and restoration costs, other than capital investments, in connection with Tropical Storm Isaias and other major storms that were deferred by the Utilities.

Settlement of prudence proceeding represents the remaining amount to be credited to customers pursuant to a Joint Proposal, approved by the NYSPSC in April 2016, with respect to the prudence of certain CECONY expenditures and related matters.

Settlement of gas proceedings represents the amount to be credited to customers pursuant to a settlement agreement approved by the NYSPSC in February 2017 related to CECONY’s practices of qualifying persons to perform plastic fusions on gas facilities and alleged violations of gas safety violations identified by the NYSPSC staff in its investigation of a March 2014 Manhattan explosion and fire (see Note H).

COVID - 19 Deferrals represents both the amount to be collected from customers related to the Emergency Summer Cooling Credits program for CECONY and amounts related to the increase in the allowance for uncollectible accounts resulting from the COVID-19 pandemic and New York on PAUSE and related executive orders, for electric and gas operations for CECONY and electric operations for O&R.

Property tax reconciliation represents the amount deferred between actual property taxes incurred and the level included in rates subject to the provisions of the respective rate plans.

System Peak Reduction and Energy Efficiency Programs represent programs designed to increase energy efficiency achievements through a combination of responding to locational needs, bundling offerings, leveraging market-based approaches through market solicitations, time-variant pricing and other market transformation efforts.

Allowance for cost of removal less salvage represents cash previously collected from customers to fund future anticipated removal expenditures

The NYSPSC has authorized CECONY to accrue unbilled electric, gas and steam revenues. CECONY has deferred the net margin on the unbilled revenues for the future benefit of customers by recording a regulatory liability of $209 million and $198 million at December 31, 2021 and 2020, respectively, for the difference between the unbilled revenues and energy cost liabilities.

In general, the Utilities receive or are being credited with a return at the Other Customer-Provided Capital rate for regulatory assets that have not been included in rate base, and receive or are being credited with a return at the pre-tax weighted average cost of capital once the asset is included in rate base. Similarly, the Utilities pay to or credit customers with a return at the Other Customer-Provided Capital rate for regulatory liabilities that have not been included in rate base, and pay to or credit customers with a return at the pre-tax weighted average cost of capital once the liability is included in rate base. The Other Customer-Provided Capital rate for the years ended December 31, 2021 and 2020 was 1.80 percent and 2.65 percent, respectively.

In general, the Utilities are receiving or being credited with a return on their regulatory assets for which a cash outflow has been made ($1,962 million and $1,639 million for Con Edison, and $1,751 million and $1,454 million for CECONY at December 31, 2021 and 2020, respectively). Regulatory assets of RECO for which a cash outflow has been made ($25 million and $31 million at December 31, 2021 and 2020, respectively) are not receiving or being credited with a return. RECO recovers regulatory assets over a period of up to four years or until they are addressed in its next base rate case in accordance with the rate provisions approved by the New Jersey Board of Public Utilities. Regulatory liabilities are treated in a consistent manner.

Regulatory assets that represent future financial obligations and were deferred in accordance with the Utilities’ rate plans or orders issued by state regulators do not earn a return until such time as a cash outlay has been made. Regulatory liabilities are treated in a consistent manner. At December 31, 2021 and 2020, regulatory assets for Con Edison and CECONY that did not earn a return consisted of the following items:

Regulatory Assets Not Earning a Return*


	Con Edison		CECONY
(Millions of Dollars)	2021	2020	2021	2020
Unrecognized pension and other postretirement costs	$128	$3,241	$110	$3,065
Environmental remediation costs	928	855	850	781
Revenue taxes	375	336	359	323
Deferred derivative losses - long term	51	120	45	111
COVID-19 Deferral for Uncollectible Accounts Receivable	236	57	231	55
Other	24	24	24	24
Deferred derivative losses - current	141	190	134	177
Total	$1,883	$4,823	$1,753	$4,536

*This table presents regulatory assets not earning a return for which no cash outlay has been made.

The recovery periods for regulatory assets for which a cash outflow has not been made and that do not earn a return have not yet been determined, except as noted below, and are expected to be determined pursuant to the Utilities’ future rate plans to be filed or orders issued by the state regulators in connection therewith.

The Utilities recover unrecognized pension and other postretirement costs over 10 years, and the portion of investment gains or losses recognized in expense over 15 years, pursuant to NYSPSC policy.

The deferral for revenue taxes represents the New York State metropolitan transportation business tax surcharge on the cumulative temporary differences between the book and tax basis of assets and liabilities of the Utilities, as well as the difference between taxes collected and paid by the Utilities to fund mass transportation. The Utilities recover the majority of the revenue taxes over the remaining book lives of the electric and gas plant assets, as well as the steam plant assets for CECONY.

The Utilities recover deferred derivative losses – current within one year, and noncurrent generally within three years.

Electricity Purchase Agreements

The Utilities have electricity purchase agreements with non-utility generators and others for generating capacity. The Utilities recover their purchased power costs in accordance with provisions approved by the applicable state public utility regulators. See “Recoverable Energy Costs” in Note A. The Utilities also conducted auctions and have entered into various other electricity purchase agreements. Assuming performance by the parties to the electricity purchase agreements, the Utilities are obligated over the terms of the agreements to make capacity and other fixed payments.

The future capacity and other fixed payments under the electricity purchase agreements are estimated to be as follows:


(Millions of Dollars)	2022	2023	2024	2025	2026	All Years Thereafter
Con Edison	$126	$78	$55	$55	$56	$434
CECONY	124	78	55	55	56	434

For energy delivered under most of the electricity purchase agreements, CECONY is obligated to pay variable prices. The company’s payments under the significant terms of the agreements for capacity, energy and other fixed payments in 2021, 2020 and 2019 were as follows:


	For the Years Ended December 31,
(Millions of Dollars)	2021	2020	2019
Astoria Generating Company (a)	$20	$26	$116
Brooklyn Navy Yard (b)	139	113	115
Total	$159	$139	$231

(a) Capacity purchase agreements with terms ending in 2021 through 2023.

(b) Contract for plant output, which started in 1996 and ends in 2036.

Regulatory Matters - Regulatory Assets (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Regulatory Assets [Line Items]
Regulatory assets – noncurrent	$ 3,316	$ 5,745
Regulatory assets – current	188	244
Total Regulatory Assets	3,504	5,989
Regulatory assets not earning return	1,753	4,536
Unrecognized pension and other postretirement costs
Regulatory Assets [Line Items]
Regulatory assets – noncurrent	110	3,065
Regulatory assets not earning return	110	3,065
Environmental remediation costs
Regulatory Assets [Line Items]
Regulatory assets – noncurrent	860	791
Regulatory assets not earning return	850	781
Revenue taxes
Regulatory Assets [Line Items]
Regulatory assets – noncurrent	378	342
Regulatory assets not earning return	359	323
Pension and other postretirement benefits deferrals
Regulatory Assets [Line Items]
Regulatory assets – noncurrent	435	272
Property tax reconciliation
Regulatory Assets [Line Items]
Regulatory assets – noncurrent	202	239
Deferred storm costs
Regulatory Assets [Line Items]
Regulatory assets – noncurrent	158	83
MTA power reliability deferral
Regulatory Assets [Line Items]
Regulatory assets – noncurrent	140	188
System peak reduction and energy efficiency programs
Regulatory Assets [Line Items]
Regulatory assets – noncurrent	284	124
Deferred derivative losses
Regulatory Assets [Line Items]
Regulatory assets – noncurrent	45	111
Regulatory assets not earning return	45	111
COVID - 19 Deferrals
Regulatory Assets [Line Items]
Regulatory assets – noncurrent	277	113
Municipal infrastructure support costs
Regulatory Assets [Line Items]
Regulatory assets – noncurrent	44	62
Brooklyn Queens demand management program
Regulatory Assets [Line Items]
Regulatory assets – noncurrent	36	36
Meadowlands heater odorization project
Regulatory Assets [Line Items]
Regulatory assets – noncurrent	29	32
Gate station upgrade project
Regulatory Assets [Line Items]
Regulatory assets – noncurrent	14	25
Unamortized loss on reacquired debt
Regulatory Assets [Line Items]
Regulatory assets – noncurrent	14	19
Preferred stock redemption
Regulatory Assets [Line Items]
Regulatory assets – noncurrent	20	21
Recoverable REV demonstration project costs
Regulatory Assets [Line Items]
Regulatory assets – noncurrent	15	18
Non-wire alternative projects
Regulatory Assets [Line Items]
Regulatory assets – noncurrent	23	18
COVID-19 Deferral for Uncollectible Accounts Receivable
Regulatory Assets [Line Items]
Regulatory assets not earning return	231	55
Other
Regulatory Assets [Line Items]
Regulatory assets – noncurrent	232	186
Regulatory assets not earning return	24	24
Deferred derivative losses
Regulatory Assets [Line Items]
Regulatory assets – current	133	177
Regulatory assets not earning return	134	177
Recoverable energy costs
Regulatory Assets [Line Items]
Regulatory assets – current	$ 55	$ 67

Pension Benefits - Schedule of Funded Status (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
CHANGE IN PLAN ASSETS
Fair value of plan assets at beginning of year	$ 439
FAIR VALUE OF PLAN ASSETS AT END OF YEAR	499	$ 439
Pension Benefits
CHANGE IN PROJECTED BENEFIT OBLIGATION
Projected benefit obligation at beginning of year	17,821	15,750	$ 13,542
Service cost – excluding administrative expenses	317	269	228
Interest cost on projected benefit obligation	443	515	564
Net actuarial loss/(gain)	(1,441)	2,154	2,076
Plan amendments	0	0	0
Benefits paid	(799)	(867)	(660)
PROJECTED BENEFIT OBLIGATION AT END OF YEAR	16,341	17,821	15,750
CHANGE IN PLAN ASSETS
Fair value of plan assets at beginning of year	16,147	14,790	12,744
Actual return on plan assets	1,838	1,830	2,425
Employer contributions	432	435	318
Benefits paid	(799)	(867)	(660)
Administrative expenses	(52)	(41)	(37)
FAIR VALUE OF PLAN ASSETS AT END OF YEAR	17,566	16,147	14,790
FUNDED STATUS	1,225	(1,674)	(960)
Unrecognized net loss	207	3,145	2,466
Unrecognized prior service costs/(credits)	(163)	(183)	(202)
Accumulated benefit obligation	$ 14,504	$ 15,676	$ 14,010

Short-Term Borrowing	12 Months Ended
Short-Term Borrowing	Dec. 31, 2021
Debt Disclosure [Abstract]
Short-Term Borrowing	Short-Term Borrowing In December 2016, Con Edison and the Utilities entered into a credit agreement (Credit Agreement), under which banks are committed to provide loans and letters of credit on a revolving credit basis. The Credit Agreement, as amended in 2019, expires in December 2023. There is a maximum of $2,250 million of credit available through December 2022 and $2,200 million of credit available from then through December 2023. The full amount is available to CECONY and $1,000 million (subject to increase up to $1,500 million) is available to Con Edison, including up to $1,200 million of letters of credit. The Credit Agreement supports the Companies’ commercial paper programs. The Companies have not borrowed under the Credit Agreement. At December 31, 2021, Con Edison had $1,488 million of commercial paper outstanding, of which $1,361 million was outstanding under CECONY’s program. The weighted average interest rate at December 31, 2021 was 0.3 percent for both Con Edison and CECONY. At December 31, 2020, Con Edison had $1,705 million of commercial paper outstanding of which $1,660 million was outstanding under CECONY’s program. The weighted average interest rate at December 31, 2020 was 0.3 percent for both Con Edison and CECONY. At December 31, 2021 and 2020, no loans were outstanding under the Credit Agreement. An immaterial amount of letters of credit were outstanding under the Credit Agreement as of December 31, 2021 and 2020. 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, declare any amounts owed by that company under the Credit Agreement immediately due and payable and require that company to provide cash collateral relating to the letters of credit issued for it under the Credit Agreement. Events of default for a company include that company exceeding at any time of a ratio of consolidated debt to consolidated total capital of 0.65 to 1 (at December 31, 2021 this ratio was 0.52 to 1 for Con Edison and 0.55 to 1 for CECONY); that company having liens on its assets in an aggregate amount exceeding five percent of its consolidated total capital, subject to certain exceptions; that company or any of its material subsidiaries failing to make one or more payments in respect of material financial obligations (in excess of an aggregate $150 million of debt or derivative obligations other than non-recourse debt) of that company; the occurrence of an event or condition which results in the acceleration of the maturity of any material debt (in excess of an aggregate $150 million of debt other than non-recourse debt) of that company or enables the holders of such debt to accelerate the maturity thereof; and other customary events of default. Interest and 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. The Companies were in compliance with their significant debt covenants at December 31, 2021. See Note U for information about short-term borrowing between related parties.

Revenue Recognition - Revenue Recognition, Remaining Performance Obligation (Details) $ in Millions	Dec. 31, 2021 USD ($)
Revenue from Contract with Customer [Abstract]
Remaining performance obligation	$ 120
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01
Revenue from Contract with Customer [Abstract]
Remaining performance obligation	$ 81
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of satisfaction	2 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01
Revenue from Contract with Customer [Abstract]
Remaining performance obligation	$ 39
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of satisfaction

Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	$ 13,456	$ 12,026	$ 12,144
Revenues	11,716	10,647	10,821
Decoupling Mechanisms
Disaggregation of Revenue [Line Items]
Revenues	(18)
EAMs
Disaggregation of Revenue [Line Items]
Revenues	2
LPCs
Disaggregation of Revenue [Line Items]
Revenues	4
Other
Disaggregation of Revenue [Line Items]
Revenues	220	220	430
Operating Segments
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	956	843	874
Revenues	941	862	893
Operating Segments \| Other
Disaggregation of Revenue [Line Items]
Revenues	(15)	19	19
Operating Segments \| Electric
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	691	619	627
Revenues	681	629	634
Operating Segments \| Electric \| Other
Disaggregation of Revenue [Line Items]
Revenues	(10)	10	7
Operating Segments \| Gas
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	265	224	247
Revenues	260	233	259
Operating Segments \| Gas \| Other
Disaggregation of Revenue [Line Items]
Revenues	(5)	9	12
Operating Segments \| Steam
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	519	494	610
Revenues	532	508	627
Operating Segments \| Steam \| Other
Disaggregation of Revenue [Line Items]
Revenues	13	14	17
Operating Segments \| Clean Energy Businesses
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	917	661	646
Revenues	1,022	736	857
Operating Segments \| Clean Energy Businesses \| Other
Disaggregation of Revenue [Line Items]
Revenues	105	75	211
Operating Segments \| Clean Energy Businesses \| Renewables
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	683	609	575
Revenues	683	609	575
Operating Segments \| Clean Energy Businesses \| Renewables \| Other
Disaggregation of Revenue [Line Items]
Revenues	0	0	0
Operating Segments \| Clean Energy Businesses \| Energy services
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	234	52	71
Revenues	234	52	71
Operating Segments \| Clean Energy Businesses \| Energy services \| Other
Disaggregation of Revenue [Line Items]
Revenues	0	0	0
Operating Segments \| Clean Energy Businesses \| Other
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0
Revenues	105	75	211
Operating Segments \| Clean Energy Businesses \| Other \| Other
Disaggregation of Revenue [Line Items]
Revenues	105	75	211
Operating Segments \| Con Edison Transmission
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	4	4	4
Revenues	4	4	4
Operating Segments \| Con Edison Transmission \| Other
Disaggregation of Revenue [Line Items]
Revenues	0	0	0
Other
Disaggregation of Revenue [Line Items]
Revenues from contracts with customers	0	0	0
Revenues	0	0	0
Other \| Other
Disaggregation of Revenue [Line Items]
Revenues	$ (7)	$ (3)	$ (1)

Leases - Future Minimum Lease Payments (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Operating Leases
2022	$ 60
2023	59
2024	59
2025	60
2026	59
All years thereafter	394
Total future minimum lease payments	691
Less: imputed interest	(139)
Total	552
Operating lease liabilities (current)	90	$ 73
Operating lease liabilities (noncurrent)	462	$ 512
Total	552
Finance Leases
2022	0
2023	0
2024	1
2025	0
2026	0
All years thereafter	0
Total future minimum lease payments	1
Less: imputed interest	0
Total	1
Other current liabilities	0
Other noncurrent liabilities	1
Total	$ 1
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Liabilities, Current	Liabilities, Current
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Liabilities, Other than Long-term Debt, Noncurrent	Liabilities, Other than Long-term Debt, Noncurrent
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration]	Liabilities, Other than Long-term Debt, Noncurrent, Other Liabilities	Liabilities, Other than Long-term Debt, Noncurrent, Other Liabilities

Environmental Matters - Environmental Remediation Costs (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Environmental Exit Cost [Line Items]
Remediation costs incurred	$ 24	$ 32

Summary of Significant Accounting Policies and Other Matters - Changes in Accumulated Other Comprehensive Income/(Loss) by Component (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
AOCI Attributable to Parent, Net of Tax [Roll Forward]
BALANCE AS OF BEGINNING OF PERIOD	$ 19,065	$ 18,213	$ 16,839
BALANCE AS OF BEGINNING OF PERIOD	14,849	14,147	12,910
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAXES	7	(1)	(1)
BALANCE AS OF END OF PERIOD	16,312	14,849	14,147
BALANCE AS OF END OF PERIOD	20,336	19,065	18,213
Accumulated OCI
AOCI Attributable to Parent, Net of Tax [Roll Forward]
BALANCE AS OF BEGINNING OF PERIOD	(25)	(19)	(16)
BALANCE AS OF END OF PERIOD	5	(25)	(19)
Pension Plan Liabilities
AOCI Attributable to Parent, Net of Tax [Roll Forward]
OCI before reclassifications, net of tax	22	(11)	(10)
Amounts reclassified from accumulated OCI related to pension plan liabilities, net of tax	8	5	7
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAXES	30	(6)	(3)
OCI before reclassifications, tax	(8)	4	(6)
Amounts reclassified from accumulated OCI related to pension plan liabilities, tax	(3)	(2)	(2)
Accumulated OCI
AOCI Attributable to Parent, Net of Tax [Roll Forward]
BALANCE AS OF BEGINNING OF PERIOD	(25)	(19)	(16)
BALANCE AS OF BEGINNING OF PERIOD	(7)	(6)	(5)
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAXES	7	(1)	(1)
BALANCE AS OF END OF PERIOD	0	(7)	(6)
BALANCE AS OF END OF PERIOD	5	(25)	(19)
Pension Plan Liabilities
AOCI Attributable to Parent, Net of Tax [Roll Forward]
OCI before reclassifications, net of tax	5	(3)	(3)
Amounts reclassified from accumulated OCI related to pension plan liabilities, net of tax	2	2	2
TOTAL OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAXES	7	(1)	(1)
OCI before reclassifications, tax	(2)	$ 1	$ (1)
Amounts reclassified from accumulated OCI related to pension plan liabilities, tax	$ (1)

Income Tax - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Operating Loss Carryforwards [Line Items]
Unrecognized tax benefits	$ 5.0	$ 3.0	$ 2.0	$ 4.0
Effective income tax rate reconciliation, uncertainty of taxes	3.0
Unrecognized tax benefits that would have an impact on effective tax rate	5.0
Unrecognized tax benefits that would have an impact on effective tax rate, net of tax	16.0
General Business Tax Credit
Operating Loss Carryforwards [Line Items]
Tax credit carryovers	946.0
Tax Year 2018 Through 2013
Operating Loss Carryforwards [Line Items]
Operating loss carryback	29.0
Net tax refund		2.5
Tax Year 2013
Operating Loss Carryforwards [Line Items]
Discrete income tax benefit		$ 4.0
State
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards, valuation allowance	21.5
State \| New York State
Operating Loss Carryforwards [Line Items]
Operating loss carryforwards	1,130.0
State \| New York City
Operating Loss Carryforwards [Line Items]
Valuation allowance reversed	5.0
Deferred tax assets	$ 17.0

Fair Value Measurements - Schedule of Commodity Derivatives (Details) - Level 3 $ in Millions	Dec. 31, 2021 USD ($) $ / MWh $ / kW-month
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items]
Fair Value of commodity derivatives \| $	$ (7)
Electricity \| Forward Energy Prices
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items]
Fair Value of commodity derivatives \| $	$ (6)
Electricity \| Forward Energy Prices \| Minimum
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items]
Unobservable Inputs Range (dollar per unit) \| $ / MWh	18.75
Electricity \| Forward Energy Prices \| Maximum
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items]
Unobservable Inputs Range (dollar per unit) \| $ / MWh	82.40
Electricity \| Forward Capacity Prices
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items]
Fair Value of commodity derivatives \| $	$ (8)
Electricity \| Forward Capacity Prices \| Minimum
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items]
Unobservable Inputs Range (dollar per unit) \| $ / kW-month	1.35
Electricity \| Forward Capacity Prices \| Maximum
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items]
Unobservable Inputs Range (dollar per unit) \| $ / kW-month	12.93
Transmission Congestion Contracts \| Inter-Zonal Forward Price Curves
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items]
Fair Value of commodity derivatives \| $	$ 1
Transmission Congestion Contracts \| Inter-Zonal Forward Price Curves \| Minimum
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items]
Unobservable Inputs Range (dollar per unit) \| $ / MWh	0.52
Transmission Congestion Contracts \| Inter-Zonal Forward Price Curves \| Maximum
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items]
Unobservable Inputs Range (dollar per unit) \| $ / MWh	3.63

Asset Retirement Obligations	12 Months Ended
Asset Retirement Obligations	Dec. 31, 2021
Asset Retirement Obligation Disclosure [Abstract]
Asset Retirement Obligations	Asset Retirement Obligations The Companies recognize a liability at fair value for legal obligations associated with the retirement of long-lived assets in the period in which they are incurred, or when sufficient information becomes available to reasonably estimate the fair value of such legal obligations. 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 fair value of the asset retirement obligation liability is measured using expected future cash flows discounted at credit-adjusted risk-free rates, historical information, and where available, quoted prices from outside contractors. The Companies evaluate these assumptions underlying the asset retirement obligation liability on an annual basis or as frequently as needed. The Companies recorded asset retirement obligations associated with the removal of asbestos and asbestos-containing material in their buildings (other than the structures enclosing generating stations and substations), electric equipment and steam and gas distribution systems. The Companies also recorded asset retirement obligations relating to gas and oil pipelines abandoned in place and municipal infrastructure support. The Companies did not record an asset retirement obligation for the removal of asbestos associated with the structures enclosing generating stations and substations. For these building structures, the Companies were unable to reasonably estimate their asset retirement obligations because the Companies were unable to estimate the undiscounted retirement costs or the retirement dates and settlement dates. The amount of the undiscounted retirement costs could vary considerably depending on the disposition method for the building structures, and the method has not been determined. The Companies anticipate continuing to use these building structures in their businesses for an indefinite period, and so the retirement dates and settlement dates are not determinable. Con Edison recorded asset retirement obligations for the removal of the Clean Energy Businesses’ solar and wind equipment related to projects located on property that is not owned by them and the term of the arrangement is finite including any renewal options. Con Edison did not record asset retirement obligations for the Clean Energy Businesses’ projects that are located on property that is owned by them because they expect that the equipment will continue to generate electricity at these facilities long past the manufacturer’s warranty at minimal operating expense. Therefore, Con Edison was unable to reasonably estimate the retirement date of this equipment. The Utilities include in depreciation rates the estimated removal costs, less salvage, for utility plant assets. The amounts related to removal costs that are associated with asset retirement obligations are classified as an asset retirement liability. Pursuant to accounting rules for regulated operations, future removal costs that do not represent legal asset retirement obligations are recorded as regulatory liabilities. Accretion and depreciation expenses related to removal costs that represent legal asset retirement obligations are applied against the Companies’ regulatory liabilities. Asset retirement costs that are recoverable from customers are recorded as regulatory liabilities to reflect the timing difference between costs recovered through the rate-making process and recognition of costs. At December 31, 2021, the liabilities for asset retirement obligations of Con Edison and CECONY were $577 million and $504 million, respectively. At December 31, 2020, the liabilities for asset retirement obligations of Con Edison and CECONY were $576 million and $508 million, respectively. The change in liabilities at December 31, 2021 was due to changes in estimated cash flows of $58 million and $55 million for Con Edison and CECONY, respectively, and accretion expense of $18 million and $15 million for Con Edison and CECONY, respectively. The changes were offset by liabilities settled of $75 million and $74 million for Con Edison and CECONY, respectively. The change in liabilities at December 31, 2020 was due to changes in estimated cash flows of $191 million and $186 million for Con Edison and CECONY, respectively, and accretion expense of $16 million and $13 million for Con Edison and CECONY, respectively. The changes were offset by liabilities settled of $56 million and $53 million for Con Edison and CECONY, respectively. At December 31, 2021, Con Edison and CECONY recorded reductions of $87 million and $85 million, respectively, to the regulatory liability associated with cost of removal to reflect depreciation and interest expense. At December 31, 2020, Con Edison and CECONY recorded reductions of $49 million to the regulatory liability associated with cost of removal to reflect depreciation and interest expense.

Variable Interest Entities

12 Months Ended

Dec. 31, 2021

Equity Method Investments and Joint Ventures [Abstract]

Variable Interest Entities

Variable Interest EntitiesThe accounting rules for consolidation address the consolidation of a variable interest entity (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.

The Companies enter into arrangements including leases, partnerships and electricity purchase agreements, with various entities. As a result of these arrangements, the Companies retain or may retain a variable interest in these entities.

CECONY

CECONY has an ongoing long-term electricity purchase agreement with Brooklyn Navy Yard Cogeneration Partners, LP, a potential VIE. In 2021, a request was made of this counterparty 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 for this contract constitute CECONY's maximum exposure to loss with respect to the potential VIE.

Clean Energy Businesses

In June 2021, a subsidiary of the Clean Energy Businesses sold substantially all of its membership interest in a renewable electric project, and retained an equity interest of $11 million in the project, which is accounted for as an equity method investment. See Note W. The earnings of the project are determined using the hypothetical liquidation at book value (HLBV) method of accounting which resulted in a loss of $11 million pre-tax ($8 million after-tax) for the year ended December 31, 2021. Con Edison is not the primary beneficiary since the power to direct the activities that most significantly impact the economics of the renewable electric project is not held by the Clean Energy Businesses.

In February 2021, a subsidiary of the Clean Energy Businesses entered into an agreement relating to certain projects (CED Nevada Virginia) with a noncontrolling tax equity investor to which a percentage of earnings, tax attributes and cash flows will be allocated. CED Nevada Virginia is a consolidated entity in which Con Edison has less than a 100 percent membership interest. Con Edison is the primary beneficiary since the power to direct the activities that most significantly impact the economics of CED Nevada Virginia during construction of the projects, and upon commercial operation, is held by the Clean Energy Businesses.

For the year ended December 31, 2021, the HLBV method of accounting for CED Nevada Virginia resulted in a $158 million loss ($119 million, after tax) for the tax equity investor and $155 million of income ($117 million, after tax) for Con Edison.

In 2018, the Clean Energy Businesses completed its acquisition of Sempra Solar Holdings, LLC. Included in the acquisition were certain operating projects (Tax Equity Projects) with a noncontrolling tax equity investor to which a percentage of earnings, tax attributes and cash flows are allocated. The Tax Equity Projects are consolidated entities in which Con Edison has less than a 100 percent membership interest. Con Edison is the primary beneficiary since the power to direct the activities that most significantly impact the economics of the Tax Equity Projects is held by the Clean Energy Businesses. Electricity generated by the Tax Equity Projects is sold to utilities and municipalities pursuant to long-term power purchase agreements.

For the year ended December 31, 2021, the HLBV method of accounting for the Tax Equity Projects resulted in $6 million of income ($4 million, after tax) for the tax equity investor and $30 million of income ($24 million, after tax) for Con Edison. For the year ended December 31, 2020, the HLBV method of accounting for the Tax Equity Projects resulted in $43 million of income ($32 million, after tax) for the tax equity investor and a $6 million loss ($4 million, after tax) for Con Edison.

Con Edison has determined that the use of HLBV accounting is reasonable and appropriate to attribute income and loss to the tax equity investors. Refer to Use of Hypothetical Liquidation at Book Value in Note A.

At December 31, 2021 and 2020, Con Edison’s consolidated balance sheet included the following amounts associated with its VIEs:


	Tax Equity Projects
	Great Valley Solar (c)(d)		Copper Mountain - Mesquite Solar (c)(e)		CED Nevada Virginia (c)(h)
(Millions of Dollars)	2021	2020	2021	2020	2021
Non-utility property, less accumulated depreciation (f)(g)	$275	$284	$431	$446	$643
Other assets	37	39	167	176	55
Total assets (a)	$312	$323	$598	$622	$698
Other liabilities	14	13	74	71	315
Total liabilities (b)	$14	$13	$74	$71	$315

(a)The assets of the Tax Equity Projects and CED Nevada Virginia represent assets of a consolidated VIE that can be used only to settle obligations of the consolidated VIE.

(b)The liabilities of the Tax Equity Projects and CED Nevada Virginia represent liabilities of a consolidated VIE for which creditors do not have recourse to the general credit of the primary beneficiary.

(c)Con Edison did not provide any financial or other support during the year that was not previously contractually required.

(d)Great Valley Solar consists of the Great Valley Solar 1, Great Valley Solar 2, Great Valley Solar 3 and Great Valley Solar 4 projects, for which the noncontrolling interest of the tax equity investor was $84 million and $82 million at December 31, 2021 and 2020, respectively.

(e)Copper Mountain - Mesquite Solar consists of the Copper Mountain Solar 4, Mesquite Solar 2 and Mesquite Solar 3 projects for which the noncontrolling interest of the tax equity investor was $118 million and $134 million at December 31, 2021 and 2020, respectively.

(f)Non-utility property is reduced by accumulated depreciation of $26 million for Great Valley Solar, $44 million for Copper Mountain - Mesquite Solar and $10 million for CED Nevada Virginia at December 31, 2021.

(g)Non-utility property is reduced by accumulated depreciation of $18 million for Great Valley Solar and $30 million for Copper Mountain - Mesquite Solar at December 31, 2020.

(h)CED Nevada Virginia consists of the Copper Mountain Solar 5, Battle Mountain Solar and Water Strider Solar projects for which the noncontrolling interest of the tax equity investor was $95 million at December 31, 2021.

The following table summarizes the VIEs into which the Clean Energy Businesses have entered as of December 31, 2021:


Project Name	Generating Capacity (a) (MW AC)	Power Purchase Agreement Term in Years	Year of Investment	Location	Maximum Exposure to Loss (Millions of Dollars) (b)
Great Valley Solar (c)	200	15-20	2018	CA	$214
Copper Mountain - Mesquite Solar (c)	344	20-25	2018	NV and AZ	406
CED Nevada Virginia (c)	431	20-25	2021	NV and VA	288

(a)Represents ownership interest in the project.

(b)Maximum exposure is equal to the net assets of the project on the consolidated balance sheet less any applicable noncontrolling interest. Con Edison did not provide any financial or other support during the year that was not previously contractually required.

(c)For the projects comprising Great Valley Solar, Copper Mountain Mesquite Solar and CED Nevada Virginia, refer to (d), (e) and (h) in the table above.

Pension Benefits - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Defined Benefit Plan Disclosure [Line Items]
Pension liability	$ 2,899	$ 714
Investments value	499	439
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Regulatory assets and liabilities for future income taxes, net	2,910
Charge to OCI	6
Noncurrent liabilities	381
Investments value	17,566	16,147	$ 14,790	$ 12,744
Accumulated benefit obligation	14,504	15,676	$ 14,010
Estimated future employer contributions	20
Other Nonqualified Supplemental Defined Benefit Pension
Defined Benefit Plan Disclosure [Line Items]
Accumulated benefit obligation	$ 352	$ 377

Financial Information by Business Segment (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Segment Reporting Information [Line Items]
Revenues	$ 11,716	$ 10,647	$ 10,821
Depreciation and amortization	1,705	1,598	1,373
Operating income	2,460	2,310	2,348
Other Income (deductions)	(108)	(171)	(35)
Interest charges	905	1,019	991
Income taxes on operating income	340	193	300
Total assets	52,655	50,967	58,079
Capital expenditures	3,964	4,085	3,676
Income tax expense (benefit) on non-operating income	(6)	(3)	(7)
Parent Company
Segment Reporting Information [Line Items]
Total assets	21,620	21,499
Operating segment
Segment Reporting Information [Line Items]
Revenues	941	862	893
Depreciation and amortization	95	90	84
Operating income	150	147	139
Other Income (deductions)	(12)	(14)	(11)
Interest charges	42	41	41
Income taxes on operating income	21	21	21
Total assets	3,292	3,247	3,006
Capital expenditures	217	220	203
Operating segment \| Clean Energy Businesses
Segment Reporting Information [Line Items]
Revenues	1,022	736	857
Depreciation and amortization	231	231	226
Operating income	236	215	202
Other Income (deductions)	(10)	4	5
Interest charges	68	196	186
Income taxes on operating income	44	(43)	(58)
Total assets	6,554	6,848	6,528
Capital expenditures	298	616	248
Operating segment \| Con Edison Transmission
Segment Reporting Information [Line Items]
Revenues	4	4	4
Depreciation and amortization	1	1	1
Operating income	(16)	(8)	(6)
Other Income (deductions)	(407)	(215)	104
Interest charges	9	18	25
Income taxes on operating income	3	0	1
Total assets	249	1,348	1,618
Capital expenditures	31	3	205
Operating segment \| Electric
Segment Reporting Information [Line Items]
Revenues	681	629	634
Depreciation and amortization	69	65	60
Operating income	100	99	98
Other Income (deductions)	(8)	(10)	(7)
Interest charges	27	26	27
Income taxes on operating income	13	13	15
Total assets	2,123	2,097	2,130
Capital expenditures	147	159	142
Operating segment \| Gas
Segment Reporting Information [Line Items]
Revenues	260	233	259
Depreciation and amortization	26	25	24
Operating income	50	48	41
Other Income (deductions)	(4)	(4)	(4)
Interest charges	15	15	14
Income taxes on operating income	8	8	6
Total assets	1,169	1,150	876
Capital expenditures	70	61	61
Operating segment \| Steam
Segment Reporting Information [Line Items]
Revenues	532	508	627
Depreciation and amortization	93	90	89
Operating income	12	5	62
Other Income (deductions)	(8)	(12)	(3)
Interest charges	41	40	42
Income taxes on operating income	(9)	(14)	4
Total assets	2,647	2,616	2,479
Capital expenditures	103	122	91
Other
Segment Reporting Information [Line Items]
Revenues	0	0	0
Depreciation and amortization	0	0	0
Operating income	(4)	(10)	(7)
Other Income (deductions)	(1)	(5)	(12)
Interest charges	24	25	11
Income taxes on operating income	20	(3)	(6)
Total assets	366	485	370
Capital expenditures	0	0	0
Inter-segment
Segment Reporting Information [Line Items]
Revenues	0	0	0
Inter-segment \| Clean Energy Businesses
Segment Reporting Information [Line Items]
Revenues	0	0	0
Inter-segment \| Electric
Segment Reporting Information [Line Items]
Revenues	18	18	17
Inter-segment \| Gas
Segment Reporting Information [Line Items]
Revenues	8	7	7
Inter-segment \| Steam
Segment Reporting Information [Line Items]
Revenues	$ 74	$ 74	$ 70

Schedule I - Condensed Financial Information - Income and Comprehensive Income (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Condensed Income Statements,Captions [Line Items]
Interest expense	$ (762)	$ (739)	$ (728)
NET INCOME FOR COMMON STOCK	1,344	1,185	1,250
Comprehensive Income	$ 1,351	$ 1,184	$ 1,249
Net Income Per Share – Basic (in dollars per share)	$ 3.86	$ 3.29	$ 4.09
Net Income Per Share – Diluted (in dollars per share)	$ 3.85	$ 3.28	$ 4.08
Average Number Of Shares Outstanding—Basic (in shares)	348.4	334.8	328.5
Average Number Of Shares Outstanding—Diluted (in shares)	349.4	335.7	329.5
Parent Company
Condensed Income Statements,Captions [Line Items]
Equity in earnings of subsidiaries	$ 1,369	$ 1,105	$ 1,354
Other income (deductions), net of taxes	14	56	76
Interest expense	(37)	(60)	(87)
NET INCOME FOR COMMON STOCK	1,346	1,101	1,343
Comprehensive Income	$ 1,376	$ 1,095	$ 1,340
Net Income Per Share – Basic (in dollars per share)	$ 3.86	$ 3.29	$ 4.09
Net Income Per Share – Diluted (in dollars per share)	3.85	3.28	4.08
Dividends Declared Per Share (in dollars per share)	$ 3.10	$ 3.06	$ 2.96
Average Number Of Shares Outstanding—Basic (in shares)	348.4	334.8	328.5
Average Number Of Shares Outstanding—Diluted (in shares)	349.4	335.7	329.5

Capitalization - Significant Debt Covenants (Details)	12 Months Ended
Capitalization - Significant Debt Covenants (Details)	Dec. 31, 2021 USD ($)
Debt Instrument [Line Items]
Maximum ratio of consolidated debt to consolidated total capital	0.55
Covenant principal balance amount limit	$ 100,000,000
Tax-Exempt Debt
Debt Instrument [Line Items]
Maximum ratio of consolidated debt to consolidated total capital	0.65
Term Loan
Debt Instrument [Line Items]
Covenant principal balance amount limit	$ 150,000,000
Notes
Debt Instrument [Line Items]
Maximum ratio of consolidated debt to consolidated total capital	0.675
Covenant principal balance amount limit	$ 100,000,000

Consolidated Statement of Cash Flows - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
OPERATING ACTIVITIES
Net Income	$ 1,193	$ 1,144	$ 1,440
PRINCIPAL NON-CASH CHARGES/(CREDITS) TO INCOME
Depreciation and amortization	1,705	1,598	1,373
Impairment of assets	443	320	0
Deferred income taxes	124	168	128
Rate case amortization and accruals	(16)	(40)	(117)
Common equity component of allowance for funds used during construction	(19)	(14)	(12)
Net derivative (gains)/losses	(53)	57	27
Gain on Sale of Assets	0	0	(14)
Unbilled revenue and net unbilled revenue deferrals	(16)	(47)	(3)
Other non-cash items, net	33	(8)	0
CHANGES IN ASSETS AND LIABILITIES
Accounts receivable - customers	(412)	(516)	3
Reserve adjustments	166	74	7
Materials and supplies, including fuel oil and gas in storage	(78)	2	11
Revenue decoupling mechanism receivable	(62)	(53)	(76)
Other receivables and other current assets	(85)	(49)	54
Taxes receivable	13	(6)	29
Prepayments	(53)	19	(61)
Accounts payable	65	145	(7)
Pensions and retiree benefits obligations, net	283	253	330
Pensions and retiree benefits contributions	(433)	(438)	(325)
Accrued taxes	(54)	61	11
Accrued interest	1	13	1
Superfund and environmental remediation costs	(18)	(30)	(12)
Distributions from equity investments	18	39	57
System benefit charge	(32)	(112)	18
Deferred charges, noncurrent assets and other regulatory assets	(544)	(603)	(486)
Deferred credits and other regulatory liabilities	128	92	306
Other current and noncurrent liabilities	58	44	(14)
NET CASH FLOWS FROM OPERATING ACTIVITIES	2,186	1,693	2,502
INVESTING ACTIVITIES
Utility construction expenditures	(3,413)	(3,112)	(3,028)
Cost of removal less salvage	(316)	(304)	(288)
Non-utility construction expenditures	(323)	(583)	(248)
Proceeds from sale of assets	0	0	192
Other investing activities	10	22	22
Net (payment)/issuance of short-term debt	(299)	523	(55)
Divestiture of renewable electric projects	183	0	0
NET CASH FLOWS USED IN INVESTING ACTIVITIES	(3,729)	(3,416)	(3,124)
FINANCING ACTIVITIES
Issuance of long-term debt	2,250	2,200	1,300
Retirement of long-term debt	(640)	(350)	(475)
Debt issuance costs	(27)	(34)	(21)
Capital contribution by parent	1,100	500	900
Common stock dividends	(1,030)	(975)	(924)
Dividend to parent	(988)	(982)	(912)
Issuance of common shares - public offering	775	640	825
Issuance of common shares for stock plans	60	58	54
Distribution to noncontrolling interest	(23)	(16)	(12)
Proceeds from Other Equity	257	0	0
NET CASH FLOWS FROM FINANCING ACTIVITIES	1,396	1,857	737
CASH, TEMPORARY CASH INVESTMENTS AND RESTRICTED CASH:
NET CHANGE FOR THE PERIOD	(147)	134	115
BALANCE AT BEGINNING OF PERIOD	1,067	933	818
BALANCE AT END OF PERIOD	920	1,067	933
Cash paid/(received) during the period for:
Interest	739	693	676
Income taxes	5	102	73
SUPPLEMENTAL DISCLOSURE OF NON-CASH INFORMATION
Construction expenditures in accounts payable	406	417	285
Issuance of common shares for dividend reinvestment	49	48	47
Electric and Gas Transmission Projects
INVESTING ACTIVITIES
Investments in/acquisitions of projects	(30)	(3)	(205)
Renewable Electric Production Projects
INVESTING ACTIVITIES
Investments in/acquisitions of projects	0	(24)	(10)
Software Licenses
SUPPLEMENTAL DISCLOSURE OF NON-CASH INFORMATION
Capital expenditures incurred but unpaid as of end of period	22	48	76
Equipment
SUPPLEMENTAL DISCLOSURE OF NON-CASH INFORMATION
Capital expenditures incurred but unpaid as of end of period	$ 22	$ 28	$ 33

Schedule II - Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2021

SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]

Schedule II - Valuation and Qualifying Accounts

Schedule II

Valuation and Qualifying Accounts

For the Years Ended December 31, 2021, 2020 and 2019


				COLUMN C Additions
Company (Millions of Dollars)	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
Con Edison	Allowance for uncollectible accounts (a):
		2021	$154	$83	$—	$102	$339
		2020	$74	$72	$—	$8	$154
		2019	$68	$77	$—	$(71)	$74
CECONY	Allowance for uncollectible accounts (a):
		2021	$143	$78	$—	$102	$323
		2020	$68	$65	$—	$10	$143
		2019	$61	$72	$—	$(65)	$68

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

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

Capitalization - Carrying Amounts and Fair Values of Long-Term Debt (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Unamortized debt expense	$ 226	$ 215
Unamortized debt discount	193	176
Carrying Amount
Debt Instrument [Line Items]
Long-Term Debt (including current portion)	18,382	16,789
Fair Value
Debt Instrument [Line Items]
Long-Term Debt (including current portion)	$ 21,382	$ 20,974

Income Tax

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Income Tax

In response to the economic impacts of the COVID-19 pandemic, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law on March 27, 2020. The CARES Act provided relief to corporate taxpayers by permitting a five-year carryback of net operating losses (NOLs) for tax years 2018, 2019 and 2020, temporarily removing the 80 percent limitation when applying the NOLs to carryback years, increased the 30 percent limitation on interest deductibility to 50 percent of adjusted taxable income for tax years 2019 and 2020, and provided for certain employee retention tax credits and refunds for eligible employers.

Under the CARES Act, Con Edison carried back its $29 million NOL from tax year 2018 to tax year 2013 generating a $2.5 million net tax refund for which a tax receivable was established in 2020. In addition, Con Edison recognized a discrete income tax benefit of $4 million in 2020, due to the higher federal statutory tax rate in 2013. The 2018 federal NOL was recorded at 21 percent and was carried back to tax year 2013, which had a 35 percent federal statutory tax rate. This income tax benefit was primarily recognized at the Clean Energy Businesses.

The components of income tax are as follows:


	Con Edison			CECONY
(Millions of Dollars)	2021	2020	2019	2021	2020	2019
State
Current	$14	$7	$(12)	$1	$6	$22
Deferred	79	50	96	106	97	68
Federal
Current	43	(2)	—	121	41	185
Deferred	61	42	219	21	73	63
Amortization of investment tax credits	(7)	(7)	(7)	(3)	(2)	(3)
Total income tax expense	$190	$90	$296	$246	$215	$335

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


	Con Edison		CECONY
(Millions of Dollars)	2021	2020	2021	2020	0
Deferred tax liabilities:
Property basis differences	$8,298	$7,985	$7,213	$6,901
Regulatory assets:
Unrecognized pension and other postretirement costs	36	910	31	861
Environmental remediation costs	264	243	241	222
Deferred storm costs	33	31	—	—
Other regulatory assets	640	536	609	508
Operating lease right-of-use asset	204	220	155	165
Pension Asset Reserve	478	—	471	—
Equity investments	—	46	—	—
Other	30	—	—	—
Total deferred tax liabilities	$9,983	$9,971	$8,720	$8,657
Deferred tax assets:
Accrued pension and other postretirement costs	$218	$504	$188	$427
Regulatory liabilities:
Future income tax	554	617	517	579
Other regulatory liabilities	727	656	620	570
Superfund and other environmental costs	264	241	238	219
Asset retirement obligations	177	178	141	143
Operating lease liabilities	195	211	155	165
Loss carryforwards	144	164	38	34
Tax credits carryforward	946	1,022	—	—
Valuation allowance	(22)	(22)	—	—
Equity investments	34	—	—	—
Other	—	59	42	127
Total deferred tax assets	3,237	3,630	1,939	2,264
Net deferred tax liabilities	$6,746	$6,341	$6,781	$6,393
Unamortized investment tax credits	127	134	15	18
Net deferred tax liabilities and unamortized investment tax credits	$6,873	$6,475	$6,796	$6,411

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)	2021		2020		2019		2021		2020		2019
STATUTORY TAX RATE
Federal	21	%	21	%	21	%	21	%	21	%	21	%
Changes in computed taxes resulting from:
State income taxes, net of federal income tax benefit	4		4		4		5		5		5
Taxes attributable to noncontrolling interests	3		(1)		(1)		—		—		—
Cost of removal	2		2		1		1		1		1
Other plant-related items	(1)		(1)		(1)		(1)		(1)		(1)

Amortization of excess deferred federal income taxes	(12)		(14)		(4)		(11)		(12)		(4)
Renewable energy credits	(2)		(3)		(2)		—		—		—
Research and development credits	(1)		—		(1)		—		—		(1)
Other	—		(1)		—		—		1		—
Effective tax rate	14	%	7	%	17	%	15	%	15	%	21	%

At December 31, 2021, Con Edison had $946 million in general business tax credit carryovers (primarily renewable energy tax credits). If unused, these general business tax credit carryovers will begin to expire in 2034. A deferred tax asset for these tax attribute carryforwards was recorded, and no valuation allowance was provided, as it is more likely than not that the deferred tax asset will be realized.

At December 31, 2021, Con Edison had a New York State NOL of approximately $1.13 billion, primarily as a result of higher accelerated state tax depreciation. A deferred tax asset has been recognized for these New York State NOL carryforwards that will begin to expire, if unused, in 2038 and no valuation allowance was provided; as it is more likely than not that the deferred tax asset will be realized. In addition, Con Edison has a $5 million valuation allowance against the New York City NOL deferred tax asset of approximately $17 million. Con Edison also has a $21.5 million valuation allowance for other state NOL carryforwards; as it is not more likely than not that the deferred tax asset will be realized.

In December 2019, the Federal government issued final regulations providing guidance on provisions in the TCJA allowing for full expensing of qualified plant additions. These provisions, which Con Edison adopted under the proposed regulations of August 2018, allowed the Utilities a full expense tax deduction for plant additions in the fourth quarter of 2017, and the Utilities continue additional first year depreciation transition rules for plant additions placed in service in tax years beginning in 2018, under long-term construction contracts entered into before September 28, 2017. The impact on the Utilities of these regulations is discussed above.

In November 2018, the Federal government issued, and Con Edison adopted, proposed regulations providing guidance on the tax deductibility of interest expense under the TCJA. The TCJA generally provides for the continued deductibility of interest expense by regulated public utilities and may limit the deduction for interest expense by most non-utility businesses to 30 percent of adjusted taxable income (which resembles earnings before interest, taxes, depreciation and amortization).The regulations provide an annual safe harbor test that if at least 90 percent of consolidated plant assets consist of utility property, the entire consolidated group will be treated as a regulated public utility, and all of the consolidated group’s interest expense will be currently tax deductible. For 2018, Con Edison met the 90 percent safe harbor test and its deduction for interest expense was not limited. For 2019, Con Edison did not meet the 90 percent safe harbor test, however, its deduction for interest expense was not limited as a percentage of adjusted taxable income. In 2020, the federal government issued final regulations under the TCJA. Under the CARES Act, the limit of the deductible interest expense as a percentage of adjusted taxable income increased from 30 percent to 50 percent and accordingly, all of Con Edison’s interest expense in 2020 will be tax deductible. In 2021, the limit of the deductible interest expense as a percentage of adjustable taxable income returned to 30 percent; however, Con Edison’s deduction for interest expense was not limited. Qualifying consolidated groups would not be entitled to the full expensing provisions in the TCJA noted above. The safe harbor rules do not apply to partnerships in which Con Edison and its subsidiaries are a partner.

In April 2021, NY State passed a law that increased the corporate franchise tax rate on business income from 6.5% to 7.25%, retroactive to January 1, 2021, for taxpayers with taxable income greater than $5 million. The law also reinstated the business capital tax at 0.1875%, not to exceed an annual maximum tax liability of $5 million per taxpayer. NY State requires a corporate franchise taxpayer to calculate and pay the highest amount of tax under the three alternative methods: a tax on business income; a tax on business capital; or a fixed dollar minimum. The provisions to increase the corporate franchise tax rate and reinstate a business capital tax are scheduled to expire after 2023 and are not expected to have a material impact on the Companies’ financial position, results of operations or liquidity.

Uncertain Tax Positions

Under the accounting rules for income taxes, the Companies are not permitted to recognize the tax benefit attributable to a tax position unless such 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.

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


	Con Edison			CECONY
(Millions of Dollars)	2021	2020	2019	2021	2020	2019
Balance at January 1,	$14	$13	$6	$3	$2	$4
Additions based on tax positions related to the current year	3	—	1	2	—	1
Additions based on tax positions of prior years	2	1	10	1	1	—
Reductions for tax positions of prior years	(2)	—	(2)	(1)	—	(1)
Reductions from expiration of statute of limitations	—	—	—	—	—	—
Settlements	—	—	(2)	—	—	(2)
Balance at December 31,	$17	$14	$13	$5	$3	$2

At December 31, 2021, the estimated liability for uncertain tax positions for Con Edison was $17 million ($5 million for CECONY). Con Edison reasonably expects to resolve within the next twelve months approximately $12 million of various federal and state uncertainties due to the expected completion of ongoing tax examinations, of which the entire amount, if recognized, would reduce Con Edison's effective tax rate. The amount related to CECONY is $3 million, which, if recognized, would reduce CECONY’s effective tax rate. The total amount of unrecognized tax benefits, if recognized, that would reduce Con Edison’s effective tax rate is $17 million ($16 million, net of federal taxes) with $5 million attributable to CECONY.

The Companies recognize interest on liabilities for uncertain tax positions in interest expense and would recognize penalties, if any, in operating expenses in the Companies’ consolidated income statements. For the year ended December 31, 2021, the Companies recognized an immaterial amount of interest expense and no penalties for uncertain tax positions in their consolidated income statements. At December 31, 2021 and 2020, the Companies recognized an immaterial amount of accrued interest on their consolidated balance sheets.

Con Edison's federal tax return for 2020 remains under examination. State and local income tax returns remain open for examination in NY State for tax years 2010 through 2020, in NJ for tax years 2017 through 2020 and in New York City for tax years 2017 through 2020.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

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+ Details

Revenue Recognition

12 Months Ended

Dec. 31, 2021

Revenue from Contract with Customer [Abstract]

Revenue Recognition

The following table presents, for the years ended December 31, 2021, 2020 and 2019, revenue from contracts with customers as defined in Accounting Standards Codification (ASC) Topic 606, "Revenue from Contracts with Customers," as well as additional revenue from sources other than contracts with customers, disaggregated by major source.


	2021			2020			2019
(Millions of Dollars)	Revenues from contracts with customers	Other revenues (a)	Total operating revenues	Revenues from contracts with customers	Other revenues (a)	Total operating revenues	Revenues from contracts with customers	Other revenues (a)	Total operating revenues
CECONY
Electric	$8,736	$70	$8,806	$8,026	$77	$8,103	$7,913	$149	$8,062
Gas	2,324	54	2,378	1,998	38	2,036	2,097	35	2,132
Steam	519	13	532	494	14	508	610	17	627
Total CECONY	$11,579	$137	$11,716	$10,518	$129	$10,647	$10,620	$201	$10,821
O&R
Electric	691	(10)	681	619	10	629	627	7	634
Gas	265	(5)	260	224	9	233	247	12	259
Total O&R	$956	$(15)	$941	$843	$19	$862	$874	$19	$893
Clean Energy Businesses
Renewables	683	—	683	609	—	609	575	—	575
Energy services	234	—	234	52	—	52	71	—	71
Other	—	105	105	—	75	75	—	211	211
Total Clean Energy Businesses	$917	$105	$1,022	$661	$75	$736	$646	$211	$857
Con Edison Transmission	4	—	4	4	—	4	4	—	4
Other (b)	—	(7)	(7)	—	(3)	(3)	—	(1)	(1)
Total Con Edison	$13,456	$220	$13,676	$12,026	$220	$12,246	$12,144	$430	$12,574

(a) For the Utilities, this includes revenue from alternative revenue programs, such as the revenue decoupling mechanisms under their NY electric and gas rate plans, as well as net earnings adjustment mechanisms (EAMs) and positive incentives primarily for achieving energy efficiency goals (see "Rate Plans" in Note B), and for 2021 recognition of late payment charges and fees that were not billed (LPCs) for the years ended December 31, 2020 and 2021 and for which recovery was granted by the NYSPSC. See "COVID-19 Regulatory Matters" in Note B and "Utilities' Assessment of Late Payment Charges" below. The amount of revenue recognized under such alternative revenue programs for 2021 includes $48 million, $34 million and $74 million for CECONY's revenue decoupling mechanisms, net EAMs, and LPCs, respectively, and $(18) million, $2 million and $4 million for O&R's revenue decoupling mechanisms, net EAMs, and LPCs, respectively. For the Clean Energy Businesses, this includes revenue from wholesale services.

(b) Parent company and consolidation adjustments.

Revenues are recorded as energy is delivered, generated or services are provided and billed to customers, except for services under percentage-of-completion contracts. Amounts billed are recorded in accounts receivable - customers, with payment generally due the following month. Con Edison’s and the Utilities’ accounts receivable - customers balance also reflects the Utilities’ purchase of receivables from energy service companies to support retail choice programs. Accrued revenues not yet billed to customers are recorded as accrued unbilled revenues.

The Utilities have the obligation to deliver electricity, gas and steam energy to their customers. As the energy is immediately available for use upon delivery to the customer, the energy and its delivery are identifiable as a single performance obligation. The Utilities recognize revenues as this performance obligation is satisfied over time as the Utilities deliver, and the customers simultaneously receive and consume, the energy. The amount of revenues recognized reflects the consideration the Utilities expect to receive in exchange for delivering the energy. Under their tariffs, the transaction price for full-service customers includes the Utilities’ energy cost and for all customers includes delivery charges determined based on customer class and in accordance with established tariffs and guidelines of the NYSPSC or the NJBPU, as applicable. Accordingly, there is no unsatisfied performance obligation associated with these customers. The transaction price is applied to the Utilities’ revenue generating activities through the customer billing process. Because energy is delivered over time, the Utilities use output methods that recognize revenue based on direct measurement of the value transferred, such as units delivered, which provides an accurate measure of value for the energy delivered. The Utilities accrue revenues at the end of each month for estimated energy delivered but not yet billed to customers. 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 Clean Energy Businesses recognize revenue for the sale of energy from renewable electric projects as energy is generated and billed to counterparties; accrue revenues at the end of each month for energy generated but not yet billed to counterparties; and recognize revenue as energy is delivered and services are provided for managing energy supply assets leased from others and managing the dispatch, fuel requirements and risk management activities for generating plants and merchant transmission in the northeastern United States. The Clean Energy Businesses also recognize revenue for providing energy-efficiency services to government and commercial customers, and recognize revenue for engineering, procurement and construction services, under the percentage-of-completion method of revenue recognition.

Clean Energy Businesses' Use of the Percentage-of-Completion Method

Sales and profits on each percentage-of-completion contract are recorded each month based on the ratio of actual cumulative costs incurred to the total estimated costs at completion of the contract, multiplied by the total estimated contract revenue, less cumulative revenues recognized in prior periods (the ‘‘cost-to-cost’’ method). The impact of revisions of contract estimates, which may result from contract modifications, performance or other reasons, are recognized on a cumulative catch-up basis in the period in which the revisions are made.


	2021			2020			2019
(Millions of Dollars)	Unbilled contract revenue (a)	Unearned revenue (b)		Unbilled contract revenue (a)	Unearned revenue (b)		Unbilled contract revenue (a)	Unearned revenue (b)
Beginning balance as of January 1,	$11	$41		$29	$17		$29	$20
Additions (c)	242	—		88	31		86	1
Subtractions (c)	218	34	(d)	106	7	(d)	86	4	(d)
Ending balance as of December 31,	$35	$7		$11	$41		$29	$17

(a)Unbilled contract revenue represents accumulated incurred costs and earned profits on contracts (revenue arrangements), which have been recorded as revenue, but have not yet been billed to customers, and which represent contract assets as defined in Topic 606. Substantially all accrued unbilled contract revenue is expected to be collected within one year. Unbilled contract revenue arises from the cost-to-cost method of revenue recognition. Unbilled contract revenue from fixed-price type contracts is converted to billed receivables when amounts are invoiced to customers according to contractual billing terms, which generally occur when deliveries or other performance milestones are completed.

(b)Unearned revenue represents a liability for billings to customers in excess of earned revenue, which are contract liabilities as defined in Topic 606.

(c)Additions for unbilled contract revenue and subtractions for unearned revenue represent additional revenue earned. Additions for unearned revenue and subtractions for unbilled contract revenue represent billings. Activity also includes appropriate balance sheet classification for the period.

(d)Of the subtractions from unearned revenue, $34 million, $7 million and $4 million were included in the balances as of January 1, 2021, 2020, and 2019, respectively.

As of December 31, 2021, the aggregate amount of the remaining fixed performance obligations of the Clean Energy Businesses under contracts with customers for energy services is $120 million, of which $81 million will be recognized within the next two years, and the remaining $39 million will be recognized pursuant to long-term service and maintenance agreements.

Utilities' Assessment of Late Payment Charges

In March 2020, the Utilities began suspending new late payment charges and certain other fees for all customers. The Utilities also began providing payment extensions for all customers that were scheduled to be disconnected prior to the start of the COVID-19 pandemic. In November 2021, the NYSPSC issued an order establishing a surcharge recovery mechanism for CECONY to collect, commencing December 1, 2021 through December 31, 2022, $43 million and $7 million for electric and gas, respectively, of late payment charges and fees that were not billed for the year ended December 31, 2020. The company recorded such amounts as revenue for the year ended December 31, 2021, as permitted under the accounting rules for regulated utilities, and also accrued such amounts as a current asset at December 31, 2021. Pursuant to the November 2021 order, the company also established a recovery mechanism for CECONY to collect, commencing January 2023 through December 2023, $19 million and $4 million for electric and gas, respectively, of late payment charges and fees that were not billed for the year ended December 31, 2021 and the company recorded such amounts as revenue for the year ended December 31, 2021, as permitted under the accounting rules for regulated utilities, and also accrued such amounts as a current asset at

December 31, 2021. In October 2021, O&R, the New York State Department of Public Service (NYSDPS) and other parties entered into a Joint Proposal for new electric and gas rate plans for the three-year period January 2022 through December 2024 (the Joint Proposal) that includes certain COVID-19 provisions, such as: recovery of 2020 late payment charges over three years; reconciliation of late payment charges to amounts reflected in rates for years 2021 through 2024; and reconciliation of write-offs of customer accounts receivable balances to amounts reflected in rates from January 1, 2020 through December 31, 2024. The Joint Proposal is subject to NYSPSC approval. CECONY resumed late payment charges for commercial and residential customers who have not experienced a change in financial circumstances due to the COVID-19 pandemic on September 3, 2021 and October 1, 2021, respectively. O&R resumed late payment charges for commercial and residential customers who have not experienced a change in financial circumstances due to the COVID-19 pandemic on October 1, 2021. See "COVID-19 Regulatory Matters" in Note B.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/topic&trid=49130388

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+ Details

Consolidated Balance Sheet - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
CURRENT ASSETS
Cash and temporary cash investments	$ 920.0	$ 1,067.0
Accounts receivable - customers, less allowance for uncollectible accounts	1,841.0	1,595.0
Other receivables, less allowance for uncollectible accounts	121.0	134.0
Taxes receivable	5.0	8.0
Accrued unbilled revenue	549.0	523.0
Fuel oil, gas in storage, materials and supplies, at average cost	369.0	291.0
Prepayments	212.0	159.0
Regulatory assets	188.0	244.0
Restricted cash	154.0	164.0
Revenue decoupling mechanism receivable	191.0	129.0
Other current assets	269.0	123.0
TOTAL CURRENT ASSETS	4,703.0	4,407.0
INVESTMENTS	608.0	541.0
UTILITY PLANT, AT ORIGINAL COST
General	3,854.0	3,585.0
TOTAL	50,849.0	47,529.0
Less: Accumulated depreciation	11,223.0	10,297.0
Net	39,626.0	37,232.0
Construction work in progress	1,985.0	2,320.0
NET UTILITY PLANT	41,611.0	39,552.0
NON-UTILITY PLANT
Non-utility property, less accumulated depreciation	2.0	2.0
Construction work in progress	188.0	638.0
NET PLANT	41,613.0	39,554.0
OTHER NONCURRENT ASSETS
Goodwill	161.0	161.0
Intangible assets, net of accumulated amortization of $297 and $228 in 2021 and 2020, respectively	1,293.0	1,460.0
Operating lease right-of-use-asset	545.0	578.0
Regulatory assets	3,316.0	5,745.0
Pension and Retiree Benefits	1,677.0	0.0
Other deferred charges and noncurrent assets	193.0	142.0
TOTAL OTHER NONCURRENT ASSETS	5,731.0	6,465.0
TOTAL ASSETS	52,655.0	50,967.0
CURRENT LIABILITIES
Long-term debt due within one year	0.0	640.0
Term Loan	0.0	165.0
Notes payable	1,361.0	1,660.0
Accounts payable	1,285.0	1,232.0
Customer deposits	285.0	296.0
Accrued taxes	78.0	132.0
Accrued interest	127.0	126.0
Accrued wages	103.0	97.0
Fair value of derivative liabilities	88.0	163.0
Regulatory liabilities	134.0	11.0
System benefit charge	372.0	475.0
Operating lease liabilities	90.0	73.0
Other current liabilities	370.0	319.0
TOTAL CURRENT LIABILITIES	4,321.0	5,247.0
NONCURRENT LIABILITIES
Provision for injuries and damages	178.0	172.0
Pensions and retiree benefits	669.0	1,943.0
Superfund and other environmental costs	850.0	780.0
Asset retirement obligations	504.0	508.0
Fair value of derivative liabilities	40.0	105.0
Deferred income taxes and unamortized investment tax credits	6,796.0	6,411.0
Operating lease liabilities	462.0	512.0
Regulatory liabilities	3,921.0	4,094.0
Other deferred credits and noncurrent liabilities	220.0	197.0
TOTAL NONCURRENT LIABILITIES	13,640.0	14,722.0
LONG-TERM DEBT	18,382.0	16,149.0
COMMITMENTS, CONTINGENCIES, AND GUARANTEES (Note B, Note G, and Note H)
EQUITY
Common shareholders’ equity	16,312.0	14,849.0
Noncontrolling interest	95.0	218.0
TOTAL EQUITY (See Statement of Equity)	20,336.0	19,065.0
TOTAL LIABILITIES AND EQUITY	52,655.0	50,967.0
Electric
CURRENT ASSETS
Accrued unbilled revenue		6.0
UTILITY PLANT, AT ORIGINAL COST
Utility plant, at original cost	32,846.0	31,327.0
Gas
CURRENT ASSETS
Accrued unbilled revenue	4.0	0.5
UTILITY PLANT, AT ORIGINAL COST
Utility plant, at original cost	11,321.0	9,921.0
Steam
UTILITY PLANT, AT ORIGINAL COST
Utility plant, at original cost	$ 2,828.0	$ 2,696.0

Pension Benefits - Schedule of Assumptions (Details)	12 Months Ended
Pension Benefits - Schedule of Assumptions (Details)	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Defined Benefit Plan Disclosure [Line Items]
Rate of compensation increase	3.20%	3.20%	3.20%
Rate of compensation increase	3.20%	3.20%	4.00%
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Discount rate, benefit obligations	3.00%	2.55%	3.35%
Interest crediting rate for cash balance plan	3.50%	3.00%	3.30%
Discount rate, net periodic benefit cost	2.55%	3.35%	4.25%
Interest crediting rate for cash balance plan	3.00%	3.30%	4.00%
Expected return on plan assets	7.00%	7.00%	7.00%

Income Tax - Schedule of Differences on Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Deferred tax liabilities:
Property basis differences	$ 7,213	$ 6,901
Regulatory assets:
Unrecognized pension and other postretirement costs	31	861
Environmental remediation costs	241	222
Deferred storm costs	0	0
Other regulatory assets	609	508
Operating lease right-of-use asset	155	165
Pension Asset Reserve	471	0
Equity investments	0	0
Other	0	0
Total deferred tax liabilities	8,720	8,657
Deferred tax assets:
Accrued pension and other postretirement costs	188	427
Future income tax	517	579
Other regulatory liabilities	620	570
Superfund and other environmental costs	238	219
Asset retirement obligations	141	143
Operating lease liabilities	155	165
Loss carryforwards	38	34
Tax credits carryforward	0	0
Valuation allowance	0	0
Equity investments	0	0
Other	42	127
Total deferred tax assets	1,939	2,264
Net deferred tax liabilities	6,781	6,393
Unamortized investment tax credits	15	18
Net deferred tax liabilities and unamortized investment tax credits	$ 6,796	$ 6,411

Capitalization - Dividends (Details)	12 Months Ended
Capitalization - Dividends (Details)	Dec. 31, 2021
Debt Disclosure [Abstract]
Percentage limitation for income available for dividends (not more than)	100.00%
Rolling average calculation of income available for dividends (years)	2 years

Stock-Based Compensation - Summary of Changes in Status of Time-Based Awards (Details) - Time-based Awards	12 Months Ended
	Dec. 31, 2021 $ / shares shares
Units
Non-vested at beginning of period (in shares) \| shares	62,838
Granted (in shares) \| shares	16,200
Vested (in shares) \| shares	(19,588)
Forfeited (in shares) \| shares	(1,580)
Non-vested at end of period (in shares) \| shares	57,870
Weighted Average Grant Date Fair Value
Non-vested at beginning of period (in dollars per share) \| $ / shares	$ 80.42
Granted (in dollars per share) \| $ / shares	74.80
Vested (in dollars per share) \| $ / shares	77.95
Forfeited (in dollars per share) \| $ / shares	79.89
Non-vested at end of period (in dollars per share) \| $ / shares	$ 79.70

General	12 Months Ended
General	Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
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 Orange and Rockland Utilities, Inc. (O&R), Con Edison Clean Energy Businesses, Inc. (together with its subsidiaries, the Clean Energy Businesses) and Con Edison Transmission, Inc. (together with its subsidiaries, Con Edison Transmission) 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 subsidiary, provides electric service in southeastern NY and northern NJ and gas service in southeastern NY. Con Edison Clean Energy Businesses, Inc., through its subsidiaries, develops, owns and operates renewable and sustainable energy infrastructure projects and provides energy-related products and services to wholesale and retail customers. Con Edison Transmission, Inc. invests in and seeks to develop electric transmission projects through its subsidiary, Consolidated Edison Transmission, LLC (CET Electric), and manages, through joint ventures, investments in gas pipeline and storage facilities through its subsidiary Con Edison Gas Pipeline and Storage, LLC (CET Gas). See

Current Expected Credit Losses (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Accounts, Notes, Loans and Financing Receivable [Line Items]
Increase in allowance for uncollectible accounts resulting from COVID-19 pandemic	$ 166	$ 73
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Reserve adjustments	166	74	$ 7
Accounts receivable - customers
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance at January 1,	148	70
Recoveries	14	8
Write-offs	(91)	(54)
Reserve adjustments	246	124
Ending Balance December 31,	317	148	70
Accounts receivable - customers \| Subsidiaries
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance at January 1,	138	65
Recoveries	12	6
Write-offs	(86)	(50)
Reserve adjustments	240	117
Ending Balance December 31,	304	138	65
Other receivables
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance at January 1,	7	4
Recoveries	1	0
Write-offs	(2)	(2)
Reserve adjustments	16	5
Ending Balance December 31,	22	7	4
Other receivables \| Subsidiaries
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning Balance at January 1,	4	3
Recoveries	1	0
Write-offs	(1)	(1)
Reserve adjustments	15	2
Ending Balance December 31,	$ 19	$ 4	$ 3

Capitalization (Tables)

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Schedule of Long-Term Debt Maturities

Long-term debt maturing in the period 2022-2026 is as follows:


(Millions of Dollars)	Con Edison	CECONY
2022	$440	$—
2023	969	—
2024	393	250
2025	319	—
2026	385	250

Carrying Amounts and Fair Values of Long-Term Debt

The carrying amounts and fair values of long-term debt at December 31, 2021 and 2020 are:


(Millions of Dollars)	2021		2020
Long-Term Debt (including current portion) (a)	Carrying Amount	Fair Value	Carrying Amount	Fair Value
Con Edison	$23,044	$26,287	$22,349	$26,808
CECONY	$18,382	$21,382	$16,789	$20,974

(a)Amounts shown are net of unamortized debt expense and unamortized debt discount of $226 million and $193 million for Con Edison and CECONY, respectively, as of December 31, 2021 and $215 million and $176 million for Con Edison and CECONY, respectively, as of December 31, 2020.

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

+ Details

Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Accounts receivable - customers, allowance for uncollectible accounts	$ 304	$ 138
Other receivables, allowance for uncollectible accounts	19	4
Non-utility property, accumulated depreciation	25	25
Intangible assets, accumulated amortization	$ 297	$ 228

Revenue Recognition - Change in Unbilled Contract and Unearned Revenues (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Unbilled contract revenue
Beginning balance	$ 11	$ 29	$ 29
Additions	242	88	86
Subtractions	218	106	86
Ending balance	35	11	29
Unearned revenue
Beginning balance	41	17	20
Additions	0	31	1
Subtractions	34	7	4
Ending balance	7	41	17
Contracts with customer, revenue recognized, amount outstanding end of last period	$ 34	$ 7	$ 4

Schedule I - Condensed Financial Information - Balance Sheet (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Current Assets
Cash and temporary cash investments	$ 920	$ 1,067
Accounts receivable - customers, less allowance for uncollectible accounts	1,841	1,595
Taxes receivable	5	8
Accounts receivable from affiliated companies	38	134
Prepayments	212	159
Other current assets	269	123
TOTAL CURRENT ASSETS	4,703	4,407
Investments in subsidiaries and others	608	541
Goodwill	161	161
Other noncurrent assets	5,731	6,465
TOTAL ASSETS	52,655	50,967	$ 58,079
Current Liabilities
Long-term debt due within one year		640
Term Loan	0	165
Notes payable	1,361	1,660
Accounts payable	1,285	1,232
Accounts payable to affiliated companies	18	22
Accrued taxes	78	132
Other current liabilities	370	319
TOTAL CURRENT LIABILITIES	4,321	5,247
Long-term debt	18,382	16,149
Shareholders’ Equity
Common stock, including additional paid-in capital	16,312	14,849
Equity	16,312	14,849	$ 14,147	$ 12,910
TOTAL LIABILITIES AND EQUITY	52,655	50,967
Parent Company
Current Assets
Cash and temporary cash investments	19	144
Accounts receivable - customers, less allowance for uncollectible accounts	0	1
Taxes receivable	3	18
Accounts receivable from affiliated companies	1,199	1,256
Prepayments	28	62
Other current assets	14	12
TOTAL CURRENT ASSETS	1,263	1,493
Investments in subsidiaries and others	19,951	18,670
Goodwill	406	406
Deferred income tax	0	55
Long-term debt receivable from affiliated companies	0	875
TOTAL ASSETS	21,620	21,499
Current Liabilities
Long-term debt due within one year	293	1,178
Notes payable	50	0
Accounts payable	1	0
Accounts payable to affiliated companies	517	517
Accrued taxes	2	6
Other current liabilities	9	12
TOTAL CURRENT LIABILITIES	872	1,713
Deferred income tax	64	0
Total Liabilities	936	1,713
Long-term debt	647	939
Shareholders’ Equity
Common stock, including additional paid-in capital	9,748	8,844
Retained earnings	10,289	10,003
Equity	20,037	18,847
TOTAL LIABILITIES AND EQUITY	$ 21,620	$ 21,499

Variable Interest Entities - Net Assets (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Business Acquisition [Line Items]
Noncontrolling interest	$ 95	$ 218
Great Valley Solar
Business Acquisition [Line Items]
Non-utility property, less accumulated depreciation	275	284
Other assets	37	39
Total assets	312	323
Other liabilities	14	13
Total liabilities	14	13
Noncontrolling interest	84	82
Accumulated depreciation	26	18
Copper Mountain Solar - Mesquite Solar
Business Acquisition [Line Items]
Non-utility property, less accumulated depreciation	431	446
Other assets	167	176
Total assets	598	622
Other liabilities	74	71
Total liabilities	74	71
Noncontrolling interest	118	134
Accumulated depreciation	44	$ 30
CED Nevada Virginia
Business Acquisition [Line Items]
Non-utility property, less accumulated depreciation	643
Other assets	55
Total assets	698
Other liabilities	315
Total liabilities	315
Accumulated depreciation	$ 10

Regulatory Matters

12 Months Ended

Dec. 31, 2021

Regulated Operations [Abstract]

Regulatory Matters

Note B – Regulatory Matters

Rate Plans

Common provisions of the Utilities’ NY rate plans include:

Recoverable energy costs that allow the Utilities to recover on a current basis the costs for the energy they supply with no mark-up to their full-service customers.

Negative revenue adjustments for failure to meet certain performance standards relating to service, reliability, safety and other matters.

The following tables contain a summary of the Utilities’ rate plans:

CECONY – Electric

Effective period

January 2017 – December 2019

January 2020 – December 2022 (a)

Base rate changes

Yr. 1 – $195 million (b)

Yr. 2 – $155 million (b)

Yr. 3 – $155 million (b)

Yr. 1 – $113 million (c)

Yr. 2 – $370 million (c)

Yr. 3 – $326 million (c)

Amortizations to income of net regulatory (assets) and liabilities

Yr. 1 – $84 million

Yr. 2 – $83 million

Yr. 3 – $69 million

Yr. 1 – $267 million (d)

Yr. 2 – $269 million (d)

Yr. 3 – $272 million (d)

Other revenue sources

Retention of $75 million of annual transmission congestion revenues.

Potential earnings adjustment mechanism incentives for energy efficiency and other potential incentives of up to:

Yr. 1 – $28 million

Yr. 2 – $47 million

Yr. 3 – $64 million

Retention of $75 million of annual transmission congestion revenues.

Potential earnings adjustment mechanism incentives for energy efficiency and other potential incentives of up to:

Yr. 1 - $69 million

Yr. 2 - $74 million

Yr. 3 - $79 million

In 2020 and 2021, the company recorded $34 million and $64 million primarily related to earnings adjustment mechanism incentives for energy efficiency, respectively.

Revenue decoupling mechanisms

Continuation of reconciliation of actual to authorized electric delivery revenues.

In 2017, 2018 and 2019, the company deferred for customer benefit $45 million, $(6) million and $169 million of revenues, respectively.

Continuation of reconciliation of actual to authorized electric delivery revenues.

In 2020 and 2021, the company deferred for recovery from customers $242 million and $226 million of revenues, respectively.

Recoverable energy costs

Continuation of current rate recovery of purchased power and fuel costs.

Negative revenue adjustments

Potential charges if certain performance targets relating to service, reliability, safety and other matters are not met:

Yr. 1 – $376 million

Yr. 2 – $341 million

Yr. 3 – $352 million

In 2017 and 2018, the company did not record any negative revenue adjustments. In 2019, the company recorded negative revenue adjustments of $15 million.

Potential charges if certain performance targets relating to service, reliability, safety and other matters are not met:

Yr. 1 - $450 million

Yr. 2 - $461 million

Yr. 3 - $476 million

In 2020, the company recorded negative revenue adjustments of $5 million. In 2021, the company did not record any negative revenue adjustments.

Cost reconciliations

In 2017, 2018 and 2019, the company deferred $35 million, $189 million and $10 million of net regulatory assets, respectively.

In 2020 and 2021, the company deferred $288 million and $191 million of net regulatory assets, respectively.

Net utility plant reconciliations

Target levels reflected in rates:

Electric average net plant target excluding advanced metering infrastructure (AMI):

Yr. 1 – $21,689 million

Yr. 2 – $22,338 million

Yr. 3 – $23,002 million

AMI:

Yr. 1 – $126 million

Yr. 2 – $257 million

Yr. 3 – $415 million

The company deferred $0.4 million as a regulatory asset in 2017. In 2018 and 2019, $0.4 and $11.8 million was deferred as a regulatory liability, respectively.

Target levels reflected in rates:

Electric average net plant target excluding advanced metering infrastructure (AMI):

Yr. 1 - $24,491 million

Yr. 2 - $25,092 million

Yr. 3 - $25,708 million

AMI:

Yr. 1 - $572 million

Yr. 2 - $740 million

Yr. 3 - $806 million (h)

The company deferred $4.1 million as a regulatory asset in 2020 and $3.2 million as a regulatory liability in 2021.

Average rate base

Yr. 1 – $18,902 million

Yr. 2 – $19,530 million

Yr. 3 – $20,277 million

Yr. 1 - $21,660 million

Yr. 2 - $22,783 million

Yr. 3 - $23,926 million

Weighted average cost of capital (after-tax)

Yr. 1 – 6.82 percent

Yr. 2 – 6.80 percent

Yr. 3 – 6.73 percent

Yr. 1 to Yr. 3 – 6.61 percent

Authorized return on common equity

9.0 percent

8.80 percent

Actual return on common equity (i) (j)

Yr. 1 – 9.30 percent

Yr. 2 – 9.36 percent

Yr. 3 – 8.82 percent

Yr. 1 – 8.50 percent

Yr. 2 – 8.03 percent

Earnings sharing

Most earnings above an annual earnings threshold of 9.5 percent are to be applied to reduce regulatory assets for environmental remediation and other costs accumulated in the rate year.

In 2017, the company had no earnings above the threshold but recorded a positive adjustment related to 2016 of $5.7 million in earnings.

In 2018 and 2019, the company had no earnings sharing above the threshold.

Most earnings above an annual earnings threshold of 9.3 percent are to be applied to reduce regulatory assets for environmental remediation and other costs accumulated in the rate year.

Cost of long-term debt

Yr. 1 – 4.93 percent

Yr. 2 – 4.88 percent

Yr. 3 – 4.74 percent

Yr. 1 to Yr. 3 – 4.63 percent

Common equity ratio

48 percent

(h)Reconciliation of net utility plant for AMI will be done on a combined basis for electric and gas.

(i)Calculated in accordance with the earnings calculation method prescribed in the rate order.

CECONY – Gas

Effective period

January 2017 - December 2019

January 2020 – December 2022 (a)

Base rate changes

Yr. 1 – $(5) million (b)

Yr. 2 – $92 million

Yr. 3 – $90 million

Yr. 1 – $84 million (c)

Yr. 2 – $122 million (c)

Yr. 3 – $167 million (c)

Amortizations to income of net
regulatory (assets) and liabilities

Yr. 1 – $39 million

Yr. 2 – $37 million

Yr. 3 – $36 million

Yr. 1 – $45 million (d)

Yr. 2 – $43 million (d)

Yr. 3 – $10 million (d)

Other revenue sources

Retention of annual revenues from non-firm customers of up to $65 million and 15 percent of any such revenues above $65 million.

Potential incentives if performance targets related to gas leak backlog, leak prone pipe and service terminations are met:

Yr. 1 – $7 million

Yr. 2 – $8 million

Yr. 3 – $8 million

Retention of annual revenues from non-firm customers of up to $65 million and 15 percent of any such revenues above $65 million.

Potential earnings adjusted mechanism incentives for energy efficiency and other potential incentives of up to:

Yr. 1 - $20 million

Yr. 2 - $22 million

Yr. 3 - $25 million

In 2020 and 2021, the company recorded $3 million and $26 million of earnings adjustment mechanism incentives for energy efficiency, respectively.

Revenue decoupling mechanisms

Continuation of reconciliation of actual to authorized gas delivery revenues.

In 2017, 2018 and 2019, the company deferred $3 million, $12 million and $10 million of regulatory liabilities, respectively.

Continuation of reconciliation of actual to authorized gas delivery revenues, modified to be calculated based upon revenue per customer class instead of revenue per customer.

In 2020 and 2021, the company deferred for recovery from customers $27 million and $100 million of revenues, respectively.

Recoverable energy costs

Continuation of current rate recovery of purchased gas costs.

Negative revenue adjustments

Potential charges if performance targets relating to service, safety and other matters are not met:

Yr. 1 – $68 million

Yr. 2 – $63 million

Yr. 3 – $70 million

In 2017 and 2018, the company recorded negative revenue adjustments of $5 million and $4 million, respectively. In 2019, the company did not record any negative revenue adjustments.

Potential charges if performance targets relating to service, safety and other matters are not met:

Yr. 1 - $81 million

Yr. 2 - $88 million

Yr. 3 - $96 million

In 2020 and 2021, the company did not record any negative revenue adjustments.

Cost reconciliations

In 2017, 2018 and 2019, the company deferred $2 million of net regulatory liabilities, $44 million of net regulatory assets and $18 million of net regulatory assets, respectively.

In 2020 and 2021, the company deferred $91 million and $14 million of net regulatory assets, respectively.

Net utility plant reconciliations

Target levels reflected in rates:

Gas average net plant target excluding AMI:

Yr. 1 – $5,844 million

Yr. 2 – $6,512 million

Yr. 3 – $7,177 million

AMI:

Yr. 1 – $27 million

Yr. 2 – $57 million

Yr. 3 – $100 million

In 2017 and 2018 the company deferred $2.2 million as regulatory liabilities. In 2019, the company deferred $1.7 million as a regulatory liability.

Target levels reflected in rates:

Gas average net plant target excluding AMI:

Yr. 1 - $8,108 million

Yr. 2 - $8,808 million

Yr. 3 - $9,510 million

AMI:

Yr. 1 - $142 million

Yr. 2 - $183 million

Yr. 3 - $211 million (h)

In 2020 and 2021, the company deferred $24.7 million and $26 million as a regulatory liability, respectively.

Average rate base

Yr. 1 – $4,841 million

Yr. 2 – $5,395 million

Yr. 3 – $6,005 million

Yr. 1 - $7,171 million

Yr. 2 - $7,911 million

Yr. 3 - $8,622 million

Weighted average cost of capital
(after-tax)

Yr. 1 – 6.82 percent

Yr. 2 – 6.80 percent

Yr. 3 – 6.73 percent

Yr. 1 to Yr. 3 – 6.61 percent

Authorized return on common equity

9.0 percent

8.8 percent

Actual return on common equity (i) (j)

Yr. 1 – 9.22 percent

Yr. 2 – 9.04 percent

Yr. 3 – 8.72 percent

Yr. 1 – 8.40 percent

Yr. 2 – 8.48 percent

Earnings sharing

Most earnings above an annual earnings threshold of 9.5 percent are to be applied to reduce regulatory assets for environmental remediation and other costs accumulated in the rate year.

In 2017, 2018 and 2019, the company had no earnings above the threshold.

Most earnings above an annual earnings threshold of 9.3 percent are to be applied to reduce regulatory assets for environmental remediation and other costs accumulated in the rate year.

In 2020 and 2021, the company had no earnings above the threshold.

Cost of long-term debt

Yr. 1 – 4.93 percent

Yr. 2 – 4.88 percent

Yr. 3 – 4.74 percent

Yr. 1 to Yr. 3 – 4.63 percent

Common equity ratio

48 percent

(b)The gas base rate decrease was offset by a $41 million increase resulting from the December 2016 expiration of a temporary credit under the prior rate plan.

(e)-(i) See footnotes (e) - (i) to the table under “CECONY Electric,” above.

CECONY – Steam

Effective period

January 2014 – December 2016 (a)

Base rate changes

Yr. 1 – $(22.4) million (b)

Yr. 2 – $19.8 million (b)

Yr. 3 – $20.3 million (b)

Yr. 4 – None

Yr. 5 – None

Yr. 6 – None

Yr. 7 – None

Yr. 8 – None

Amortizations to income of net
regulatory (assets) and liabilities

$37 million over three years

Recoverable energy costs

Current rate recovery of purchased power and fuel costs.

Negative revenue adjustments

Potential charges (up to $1 million annually) if certain steam performance targets are not met. In years 2014 through 2021, the company did not record any negative revenue adjustments.

Cost reconciliations (c)(d)

Net utility plant reconciliations

Target levels reflected in rates were:

Production:

Yr. 1 – $1,752 million

Yr. 2 – $1,732 million

Yr. 3 – $1,720 million

Distribution:

Yr. 1 – $6 million

Yr. 2 – $11 million

Yr. 3 – $25 million

Average rate base

Yr. 1 – $1,511 million

Yr. 2 – $1,547 million

Yr. 3 – $1,604 million

Weighted average cost of capital (after-tax)

Yr. 1 – 7.10 percent

Yr. 2 – 7.13 percent

Yr. 3 – 7.21 percent

Authorized return on common equity

9.3 percent

Actual return on common equity (e)

Yr. 1 – 9.82 percent

Yr. 2 – 10.88 percent

Yr. 3 – 10.54 percent

Yr. 4 – 9.51 percent

Yr. 5 – 11.73 percent

Yr. 6 – 10.45 percent

Yr. 7 – 7.91 percent

Yr. 8 – 5.99 percent

Earnings sharing

Weather normalized earnings above an annual earnings threshold of 9.9 percent are to be applied to reduce regulatory assets for environmental remediation and other costs.

Cost of long-term debt

Yr. 1 – 5.17 percent

Yr. 2 – 5.23 percent

Yr. 3 – 5.39 percent

Common equity ratio

48 percent

(a)Rates determined pursuant to this rate plan continue in effect until a new rate plan is approved by the NYSPSC.

(b)The impact of these base rate changes was deferred which resulted in an $8 million regulatory liability at December 31, 2016.

(e)Calculated in accordance with the earnings calculation method prescribed in the rate order.

O&R New York – Electric

Effective period (a)

January 2019 – December 2021

January 2022 – December 2024

Base rate changes

Yr. 1 – $13.4 million (b)

Yr. 2 – $8.0 million (b)

Yr. 3 – $5.8 million (b)

Yr. 1 – $4.9 million (i)

Yr. 2 – $16.2 million (i)

Yr. 3 – $23.1 million (i)

Amortizations to income of net
regulatory (assets) and liabilities

Yr. 1 – $(1.5) million (c)

Yr. 2 – $(1.5) million (c)

Yr. 3 – $(1.5) million (c)

Yr. 1 – $11.8 million (j)

Yr. 2 – $13.5 million (j)

Yr. 3 – $15.2 million (j)

Other revenue sources

Potential earnings adjustment mechanism incentives for peak reduction, energy efficiency, Distributed Energy Resources utilization and other potential incentives of up to:

Yr. 1 - $3.6 million

Yr. 2 - $4.0 million

Yr. 3 - $4.2 million

Potential incentive if performance target related to customer service is met: $0.5 million annually.

Potential earnings adjustment mechanism incentives for energy efficiency and other potential incentives of up to:
Yr. 1 – $3.3 million
Yr. 2 – $2.3 million
Yr. 3 – $4.0 million

Revenue decoupling mechanisms

Continuation of reconciliation of actual to authorized electric delivery revenues.

In 2019 and 2020, the company deferred $0.1 million and $6 million regulatory assets, respectively. In 2021, $10 million was deferred as regulatory liabilities.

Continuation of reconciliation of actual to authorized electric delivery revenues.

Recoverable energy costs

Continuation of current rate recovery of purchased power costs.

Continuation of current rate recovery of purchased power and fuel costs.

Negative revenue adjustments

Potential charges if certain performance targets relating to service, reliability and other matters are not met:

Yr. 1 - $4.4 million

Yr. 2 - $4.4 million

Yr. 3 - $4.5 million

In 2019,2020 and 2021, the company did not record any negative revenue adjustments.

Potential charges if certain performance targets relating to service, reliability, safety and other matters are not met:

Yr. 1 – $4.3 million

Yr. 2 – $4.4 million

Yr. 3 – $5.1 million

Cost reconciliations

In 2019, 2020 and 2021, the company deferred $4.3 million, $30.3 million and $24 million as net regulatory assets, respectively.

Net utility plant reconciliations

Target levels reflected in rates were:

Electric average net plant target excluding advanced metering infrastructure (AMI):

Yr. 1 - $1,008 million

Yr. 2 - $1,032 million

Yr. 3 - $1,083 million

AMI (g):

Yr. 1 - $48 million

Yr. 2 - $58 million

Yr. 3 - $61 million

The company increased regulatory asset by an immaterial amount in 2019, $0.4 million as a regulatory liability in 2020 and an immaterial amount as a regulatory liability in 2021.

Target levels reflected in rates: Electric average net plant target

Yr. 1 – $1,175 million

Yr. 2 – $1,198 million

Yr. 3 – $1,304 million

Average rate base

Yr. 1 – $878 million

Yr. 2 – $906 million

Yr. 3 – $948 million

Yr. 1 – $1,021 million

Yr. 2 – $1,044 million

Yr. 3 – $1,144 million

Weighted average cost of capital (after-tax)

Yr. 1 – 6.97 percent

Yr. 2 – 6.96 percent

Yr. 3 – 6.96 percent

Yr. 1 – 6.77 percent

Yr. 2 – 6.73 percent

Yr. 3 – 6.72 percent

Authorized return on common equity

9.0 percent

9.2 percent

Actual return on common equity (h)

Yr. 1 – 9.6 percent

Yr. 2 – 8.76 percent

Yr. 3 – 9.16 percent

Earnings sharing

Most earnings above an annual earnings threshold of 9.6 percent are to be applied to reduce regulatory assets for environmental remediation and other costs accumulated in the rate year.

In 2019, 2020 and 2021, earnings did not exceed the earnings threshold.

Most earnings above an annual earnings threshold of 9.7 percent are to be applied to reduce regulatory assets for environmental remediation and other costs accumulated in the rate year.

Cost of long-term debt

Yr. 1 – 5.17 percent

Yr. 2 – 5.14 percent

Yr. 3 – 5.14 percent

Yr. 1 – 4.58 percent

Yr. 2 – 4.51 percent

Yr. 3 – 4.49 percent

Common equity ratio

48 percent

(b)The electric base rate increases were implemented with increases of: Yr. 1 - $8.6 million; Yr. 2 - $12.1 million; and Yr. 3 - $12.2 million.

(g)Net plant reconciliation for AMI expenditures will be implemented for a single category of AMI capital expenditures that includes amounts allocated to both electric and gas customers.

(h)Calculated in accordance with the earnings calculation method prescribed in the rate order.

(i)The Joint Proposal recommends that these base rate changes may be implemented with increases of: Yr. 1 - $11.7 million; Yr. 2 - $11.7 million; and Yr. 3 - $11.7 million.

(j)Reflects amortization of, among other things, previously incurred incremental deferred storm costs over a five-year period. See "Other Regulatory Matters," below

O&R New York – Gas

Effective period (a)

January 2019 – December 2021

January 2022 – December 2024

Base rate changes

Yr. 1 – $(7.5) million (b)

Yr. 2 – $3.6 million (b)

Yr. 3 – $0.7 million (b)

Yr. 1 – $0.7 million (i)

Yr. 2 – $7.4 million (i)

Yr. 3 – $9.9 million (i)

Amortization to income of net regulatory (assets) and liabilities

Yr. 1 – $1.8 million (c)

Yr. 2 – $1.8 million (c)

Yr. 3 – $1.8 million (c)

Yr. 1 – $0.8 million

Yr. 2 – $0.7 million

Yr. 3 – $0.3 million

Other revenue sources

Continuation of retention of annual revenues from non-firm customers of up to $4.0 million, with variances to be shared 80 percent by customers and 20 percent by company.

Potential earnings adjustment mechanism incentives of up to $0.3 million annually.

Yr. 1 – $1.2 million

Yr. 2 – $1.3 million

Yr. 3 – $1.4 million

Revenue decoupling mechanisms

Continuation of reconciliation of actual to authorized gas delivery revenues.

In 2019 and 2020, the company deferred $0.8 million and $0.5 million as regulatory assets, respectively. In 2021, $4 million was deferred as a regulatory liability.

Continuation of reconciliation of actual to authorized gas delivery revenues.

Recoverable energy costs

Continuation of current rate recovery of purchased gas costs.

Negative revenue adjustments

Potential charges if performance targets relating to service, safety and other matters are not met: Yr. 1 - $5.5 million; Yr. 2 - $5.7 million; and Yr. 3 - $6.0 million.

In 2019, the company recorded a $0.2 million. In 2020 and 2021, the company recorded an immaterial amount of negative revenue adjustments.

Potential charges if performance targets relating to service, safety and other matters are not met:

Yr. 1 – $6.3 million

Yr. 2 – $6.7 million

Yr. 3 – $7.3 million

Cost reconciliations

In 2019 and 2020, the company deferred $6 million as net regulatory liabilities, $1.8 million as net regulatory assets, respectively. In 2021 $8 million were deferred as regulatory assets.

Net utility plant reconciliations

Target levels reflected in rates were:

Gas average net plant target excluding AMI:

Yr. 1 - $593 million

Yr. 2 - $611 million

Yr. 3 - $632 million

AMI (g):

Yr. 1 - $20 million

Yr. 2 - $24 million

Yr. 3 - $25 million

In 2019, 2020 and 2021, the company deferred immaterial amounts as regulatory assets.

Target levels reflected in rates: Gas average net plant target

Yr. 1 – $720 million

Yr. 2 – $761 million

Yr. 3 – $803 million

Average rate base

Yr. 1 – $454 million

Yr. 2 – $476 million

Yr. 3 – $498 million

Yr. 1 – $566 million

Yr. 2 – $607 million

Yr. 3 – $649 million

Weighted average cost of capital (after-tax)

Yr. 1 – 6.97 percent

Yr. 2 – 6.96 percent

Yr. 3 – 6.96 percent

Yr. 1 – 6.77 percent

Yr. 2 – 6.73 percent

Yr. 3 – 6.72 percent

Authorized return on common equity

9.0 percent

9.2 percent

Actual return on common equity (h)

Yr. 1 – 8.90 percent

Yr. 2 – 9.58 percent

Yr. 3 – 10.11 percent

Earnings sharing

Most earnings above an annual earnings threshold of 9.7 percent are to be applied to reduce regulatory assets for environmental remediation and other costs accumulated in the rate year.

Cost of long-term debt

Yr. 1 – 5.17 percent

Yr. 2 – 5.14 percent

Yr. 3 – 5.14 percent

Yr. 1 – 4.58 percent

Yr. 2 – 4.51 percent

Yr. 3 – 4.49 percent

Common equity ratio

0.48

48 percent

(b)The gas base rate changes were implemented with changes of: Yr. 1 - $(5.9) million; Yr. 2 - $1.0 million; and Yr. 3 - $1.0 million.

(c)-(h) See footnotes (c) - (h) to the table under “O&R New York - Electric,” above.

(i) The Joint Proposal recommends that these base rate changes may be implemented with increases of: Yr. 1 – $4.4 million; Yr. 2 - $4.4 million; and Yr. 3 - $4.4 million.

(k) See footnote (l) to the table under "O&R New York - Electric," above.

Rockland Electric Company (RECO)

RECO

Effective period

March 2017 – January 2020

February 2020 – December 2021

January 2022

Base rate changes

$1.7 million

$12 million

$9.65 million

Amortization to income of net
regulatory (assets) and liabilities

$0.2 million over three years and continuation of $(25.6) million of deferred storm costs over four years which expired on July 31, 2018 (a)

$4.8 million over four years.

COVID-19 costs

Recovery of RECO’s COVID-19 related expenditures will be addressed in a separate petition

Recoverable energy costs

Current rate recovery of purchased power costs.

Cost reconciliations

None

Reconciliation of uncollectible accounts, Demand Side Management and Clean Energy Program.

Average rate base

$178.7 million

$229.9 million

$262.8 million

Weighted average cost of capital
(after-tax)

7.47 percent

7.11 percent

7.08 percent

Authorized return on common equity

9.6 percent

9.5 percent

9.6 percent

Actual return on common equity

Yr. 1 – 7.5 percent

Yr. 2 – 5.7 percent

Yr. 1 – 5.4 percent

Yr. 2 – 2.3 percent

Cost of long-term debt

5.37 percent

4.88 percent

4.74 percent

Common equity ratio

49.7 percent

48.32 percent

48.51 percent

COVID - 19 Regulatory Matters

New York State Regulation

the report’s COVID-19 related recommendations because NY State already passed laws that address the issues in the report, as described above.

New Jersey State Regulation

Other Regulatory Matters

Additional information relating to the 2018 Steam Incident, 2019 Manhattan and Brooklyn Outages and Tropical Storm Isaias Outages follow.

authorized to commence a proceeding under Public Service Law Section 68(2) to revoke or modify CECONY’s and/or O&R’s certificate as it relates to its service territory or any portion thereof.

Regulatory Assets and Liabilities

Regulatory assets and liabilities at December 31, 2021 and 2020 were comprised of the following items:


	Con Edison		CECONY
(Millions of Dollars)	2021	2020	2021	2020
Regulatory assets
Unrecognized pension and other postretirement costs	$128	$3,241	$110	$3,065
Environmental remediation costs	938	865	860	791
Pension and other postretirement benefits deferrals	496	315	435	272
Revenue taxes	395	356	378	342
System peak reduction and energy efficiency programs	285	124	284	124
COVID - 19 Deferrals	282	115	277	113
Deferred storm costs	276	195	158	83
Property tax reconciliation	202	241	202	239
MTA power reliability deferral	140	188	140	188
Deferred derivative losses	51	120	45	111
Municipal infrastructure support costs	44	62	44	62
Brooklyn Queens demand management program	36	36	36	36
Meadowlands heater odorization project	29	32	29	32
Non-wire alternative projects	23	18	23	18
Preferred stock redemption	20	21	20	21
Unamortized loss on reacquired debt	16	21	14	19
Recoverable REV demonstration project costs	16	20	15	18
Gate station upgrade project	14	25	14	25
Other	248	200	232	186
Regulatory assets – noncurrent	3,639	6,195	3,316	5,745
Deferred derivative losses	141	190	133	177
Recoverable energy costs	65	76	55	67
Regulatory assets – current	206	266	188	244
Total Regulatory Assets	$3,845	$6,461	$3,504	$5,989
Regulatory liabilities
Future income tax*	$1,984	$2,207	$1,840	$2,062
Allowance for cost of removal less salvage	1,199	1,090	1,033	932
Net unbilled revenue deferrals	209	198	209	198
TCJA net benefits	125	295	123	286
Net proceeds from sale of property	103	137	103	137
Pension and other postretirement benefit deferrals	102	85	55	46
System benefit charge carrying charge	70	64	63	57
Deferred derivative gains - long term	61	5	55	4
Property tax refunds	35	36	35	35
Unrecognized other postretirement costs	32	11	—	—
BQDM and REV Demo reconciliations	25	27	22	25
Sales and use tax refunds	17	16	16	16
Energy efficiency portfolio standard unencumbered funds	15	1	19	—
Earnings sharing - electric, gas and steam	13	15	10	10
Settlement of gas proceedings	12	21	12	21
Workers’ compensation	8	3	8	3
Settlement of prudence proceeding	6	5	6	5
Other	365	297	312	257
Regulatory liabilities – noncurrent	4,381	4,513	3,921	4,094
Refundable energy costs	32	28	2	4
Deferred derivative gains	142	8	132	7
Revenue decoupling mechanism	11	—	—	—
Regulatory liabilities—current	185	36	134	11
Total Regulatory Liabilities	$4,566	$4,549	$4,055	$4,105

* See "Federal Income Tax" in Note A, "Other Regulatory Matters," above, and Note L.

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

Deferred storm costs represent response and restoration costs, other than capital investments, in connection with Tropical Storm Isaias and other major storms that were deferred by the Utilities.

Property tax reconciliation represents the amount deferred between actual property taxes incurred and the level included in rates subject to the provisions of the respective rate plans.

Allowance for cost of removal less salvage represents cash previously collected from customers to fund future anticipated removal expenditures

Regulatory Assets Not Earning a Return*


	Con Edison		CECONY
(Millions of Dollars)	2021	2020	2021	2020
Unrecognized pension and other postretirement costs	$128	$3,241	$110	$3,065
Environmental remediation costs	928	855	850	781
Revenue taxes	375	336	359	323
Deferred derivative losses - long term	51	120	45	111
COVID-19 Deferral for Uncollectible Accounts Receivable	236	57	231	55
Other	24	24	24	24
Deferred derivative losses - current	141	190	134	177
Total	$1,883	$4,823	$1,753	$4,536

*This table presents regulatory assets not earning a return for which no cash outlay has been made.

The Utilities recover unrecognized pension and other postretirement costs over 10 years, and the portion of investment gains or losses recognized in expense over 15 years, pursuant to NYSPSC policy.

The Utilities recover deferred derivative losses – current within one year, and noncurrent generally within three years.

Electricity Purchase Agreements

The future capacity and other fixed payments under the electricity purchase agreements are estimated to be as follows:


(Millions of Dollars)	2022	2023	2024	2025	2026	All Years Thereafter
Con Edison	$126	$78	$55	$55	$56	$434
CECONY	124	78	55	55	56	434


	For the Years Ended December 31,
(Millions of Dollars)	2021	2020	2019
Astoria Generating Company (a)	$20	$26	$116
Brooklyn Navy Yard (b)	139	113	115
Total	$159	$139	$231

(a) Capacity purchase agreements with terms ending in 2021 through 2023.

(b) Contract for plant output, which started in 1996 and ends in 2036.

Capitalization - Common Stock (Details) - USD ($) $ in Millions	1 Months Ended
	Jun. 30, 2021	Dec. 31, 2021	Dec. 31, 2020
Schedule of Capitalization [Line Items]
Common stock, shares authorized (in shares)		340,000,000
Common stock, shares outstanding (in shares)		235,488,094	235,488,094
Treasury shares (in shares)		21,976,200	21,976,200
Shares issued (in shares)	10,100,000
Proceeds from issuance of equity	$ 775

Other Postretirement Benefits - Schedule of Change of Assumed Health Care Cost Trend Rate (Details) - Other Postretirement Benefits	Dec. 31, 2021
Pre-65 Medical
Defined Benefit Plan Disclosure [Line Items]
Initial Cost Trend Rate	6.80%
Ultimate Cost Trend Rate	4.50%
Post-65 Medical
Defined Benefit Plan Disclosure [Line Items]
Initial Cost Trend Rate	4.50%
Ultimate Cost Trend Rate	4.50%
Prescription Medications
Defined Benefit Plan Disclosure [Line Items]
Initial Cost Trend Rate	7.25%
Ultimate Cost Trend Rate	4.50%

Stock-Based Compensation - Stock-Based Compensation Expense (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 31	$ 16	$ 40
Income tax benefit	9	4	11
Performance-based restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	19	6	30
Time-based restricted stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	2	1	2
Non-employee director deferred stock compensation
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	3	2	2
Stock purchase plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 7	$ 7	$ 6

Summary of Significant Accounting Policies and Other Matters - Pension and Other Postretirement Benefits (Details)	12 Months Ended
	Dec. 31, 2021
Accounting Policies [Abstract]
Investment gains and losses recognized, time period (years)	15 years
Other actuarial gains and losses recognized, time period (years)	10 years
Difference between fair value and expected market related value of plan assets (percent)	20.00%

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2021

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Fair Value on Recurring Basis

For information on the measurement of Con Edison's investment in MVP, which was measured at fair value on a non-recurring basis, see Note A. Assets and liabilities measured at fair value on a recurring basis for the years ended December 31, 2021 and 2020 are summarized below.


	2021					2020
(Millions of Dollars)	Level 1	Level 2	Level 3	Netting Adjustment (e)	Total	Level 1	Level 2	Level 3	Netting Adjustment (e)	Total
Con Edison
Derivative assets:
Commodity (a)(b)(c)	$95	$260	$17	$(171)	$201	$19	$42	$4	$53	$118
Interest rate swaps (a)(b)(c)(f)	—	4	—	—	4	—	—	—	—	—
Other (a)(b)(d)	492	135	—	—	627	431	126	—	—	557
Total assets	$587	$399	$17	$(171)	$832	$450	$168	$4	$53	$675
Derivative liabilities:
Commodity (a)(b)(c)	$33	$266	$28	$(148)	$179	$7	$296	$23	$46	$372
Interest rate swaps (a)(b)(c)(f)	—	57	—	—	57	—	106	—	—	106
Total liabilities	$33	$323	$28	$(148)	$236	$7	$402	$23	$46	$478
CECONY
Derivative assets:
Commodity (a)(b)(c)	$67	$138	$1	$(79)	$127	$15	$20	$—	$(16)	$19
Other (a)(b)(d)	474	127	—	—	601	411	120	—	—	531
Total assets	$541	$265	$1	$(79)	$728	$426	$140	$—	$(16)	$550
Derivative liabilities:
Commodity (a)(b)(c)	$1	$172	$8	$(53)	$128	$3	$274	$10	$(19)	$268

(a)The Companies’ policy is to review the fair value hierarchy and recognize transfers into and transfers out of the levels at the end of each reporting period. Con Edison and CECONY had $1 million of commodity derivative assets and $4 million and $3 million of commodity derivative liabilities, respectively, transferred from level 3 to level 2 during the year ended December 31, 2021 because of availability of observable market data due to the decrease in the terms of certain contracts from beyond three years as of September 30, 2021 to less than three years as of December 31, 2021. Con Edison and CECONY had $1 million of commodity derivative liabilities transferred from level 3 to level 2 during the year ended December 31, 2020 because of availability of observable market data due to the decrease in the terms of certain contracts from beyond three years as of September 30, 2020 to less than three years as of December 31, 2020.

(b)Level 2 assets and liabilities include investments held in the deferred compensation plan and/or non-qualified retirement plans, exchange-traded contracts where there is insufficient market liquidity to warrant inclusion in Level 1, and certain over-the-counter derivative instruments for electricity, refined products and natural gas. Derivative instruments classified as Level 2 are valued using industry standard models that incorporate corroborated observable inputs, such as pricing services or prices from similar instruments that trade in liquid markets, time value and volatility factors.

(c)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, 2021 and 2020, the Companies determined that nonperformance risk would have no material impact on their financial position or results of operations.

(d)Other assets are comprised of assets such as life insurance contracts within the deferred compensation plan and non-qualified retirement plans.

(e)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.

(f)See Note Q.

Schedule of Commodity Derivatives

Fair Value of Level 3 at December 31, 2021

(Millions of Dollars)

Valuation Techniques

Unobservable Inputs

Range

Con Edison — Commodity

Electricity

$(6)

Discounted Cash Flow

Forward energy prices (a)

$18.75-$82.40 per MWh

(10)

Discounted Cash Flow

Forward capacity prices (a)

$0.31-$12.93 per kW-month

Transmission Congestion Contracts/Financial Transmission Rights

Discounted Cash Flow

Inter-zonal forward price curves adjusted for historical zonal losses (b)

$(20.27)-$83.04 per MWh

Total Con Edison — Commodity

$(11)

CECONY — Commodity

Electricity

$(8)

Discounted Cash Flow

Forward capacity prices (a)

$1.35-$12.93 per kW-month

Transmission Congestion Contracts

Discounted Cash Flow

Inter-zonal forward price curves adjusted for historical zonal losses (b)

$0.52-$3.63 per MWh

Total CECONY — Commodity

$(7)

(a)Generally, increases/(decreases) in this input in isolation would result in a higher/(lower) fair value measurement.

(b)Generally, increases/(decreases) in this input in isolation would result in a lower/(higher) fair value measurement.

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

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, 2021 and 2020 and classified as Level 3 in the fair value hierarchy:


	Con Edison		CECONY
(Millions of Dollars)	2021	2020	2021	2020
Beginning balance as of January 1,	$(19)	$(16)	$(10)	$(6)
Included in earnings	(9)	(10)	(3)	(5)
Included in regulatory assets and liabilities	3	(7)	1	(4)
Purchases	6	—	—	—
Settlements	5	15	3	6
Transfer out of level 3	3	(1)	2	(1)
Ending balance as of December 31,	$(11)	$(19)	$(7)	$(10)

Derivative Instruments and Hedging Activities - Realized and Unrealized Gains or Losses on Commodity Derivatives (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Pre-tax gains/(losses) deferred in accordance with accounting rules for regulated operations:
Total deferred gains/(losses)	$ 175	$ (27)
Total deferred gains/(losses)	109	(277)
Net deferred gains/(losses)	284	(304)
Pre-tax gain/(loss) recognized in income
Total pre-tax gain/(loss) recognized in income	5	(3)
Gas purchased for resale
Pre-tax gain/(loss) recognized in income
Total pre-tax gain/(loss) recognized in income	0	0
Non-utility revenue
Pre-tax gain/(loss) recognized in income
Total pre-tax gain/(loss) recognized in income	0	0
Other operations and maintenance expense
Pre-tax gain/(loss) recognized in income
Total pre-tax gain/(loss) recognized in income	5	(3)
Other interest expense
Pre-tax gain/(loss) recognized in income
Total pre-tax gain/(loss) recognized in income	0	0
Deferred Derivative Gains,Current
Pre-tax gains/(losses) deferred in accordance with accounting rules for regulated operations:
Total deferred gains/(losses)	124	(27)
Deferred Derivative Gains, Noncurrent
Pre-tax gains/(losses) deferred in accordance with accounting rules for regulated operations:
Total deferred gains/(losses)	51	0
Deferred Derivative Losses, Current
Pre-tax gains/(losses) deferred in accordance with accounting rules for regulated operations:
Total deferred gains/(losses)	43	(64)
Recoverable Energy Costs, Current
Pre-tax gains/(losses) deferred in accordance with accounting rules for regulated operations:
Total deferred gains/(losses)	0	(177)
Deferred Derivative Losses, Noncurrent
Pre-tax gains/(losses) deferred in accordance with accounting rules for regulated operations:
Total deferred gains/(losses)	$ 66	$ (36)

Capitalization - Schedule of Long-Term Debt Maturities (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
2022	$ 0
2023	0
2024	250
2025	0
2026	250
Long-term debt	$ 18,382	$ 16,789
Long-term debt due within one year		$ 640

- Definition

Amount, after unamortized (discount) premium and debt issuance costs, of long-term debt. Includes, but not limited to, notes payable, bonds payable, debentures, mortgage loans and commercial paper. Excludes capital lease obligations.

+ References + Details

Leases - Other Related Information (Details)	Dec. 31, 2021	Dec. 31, 2020
Lessee, Lease, Description [Line Items]
Weighted Average Remaining Lease Term, Operating leases	12 years 1 month 6 days	13 years
Weighted Average Remaining Lease Term, Finance leases	3 years 1 month 6 days	4 years
Weighted Average Discount Rate, Operating leases	3.50%	3.60%
Weighted Average Discount Rate, Finance leases	1.10%	1.30%

Pension Benefits (Tables)

12 Months Ended

Dec. 31, 2021

Retirement Benefits [Abstract]

Total Periodic Benefit Costs

The components of the Companies’ total periodic benefit costs for 2021, 2020 and 2019 were as follows:


	Con Edison			CECONY
(Millions of Dollars)	2021	2020	2019	2021	2020	2019
Service cost – including administrative expenses	$343	$293	$250	$321	$274	$232
Interest cost on projected benefit obligation	471	549	601	443	515	564
Expected return on plan assets	(1,096)	(1,034)	(988)	(1,040)	(980)	(936)
Recognition of net actuarial loss	787	699	518	746	661	492
Recognition of prior service credit	(17)	(16)	(17)	(19)	(19)	(19)
TOTAL PERIODIC BENEFIT COST	$488	$491	$364	$451	$451	$333
Cost capitalized	(154)	(130)	(108)	(146)	(123)	(102)
Reconciliation to rate level	(226)	(250)	(15)	(216)	(239)	(12)
Total expense recognized	$108	$111	$241	$89	$89	$219

The components of the Companies’ total periodic postretirement benefit costs for 2021, 2020 and 2019 were as follows:


	Con Edison			CECONY
(Millions of Dollars)	2021	2020	2019	2021	2020	2019
Service cost	$22	$21	$18	$16	$16	$13
Interest cost on accumulated other postretirement benefit obligation	33	37	44	28	31	36
Expected return on plan assets	(68)	(66)	(66)	(56)	(54)	(54)
Recognition of net actuarial loss/(gain)	31	37	(9)	27	36	(10)
Recognition of prior service credit	(3)	(3)	(2)	(1)	(2)	(2)
TOTAL PERIODIC POSTRETIREMENT BENEFIT COST/(CREDIT)	$15	$26	$(15)	$14	$27	$(17)
Cost capitalized	(9)	(9)	(7)	(7)	(7)	(5)
Reconciliation to rate level	(7)	(17)	12	(12)	(25)	7
Total credit recognized	$(1)	$—	$(10)	$(5)	$(5)	$(15)

Schedule of Funded Status

The funded status at December 31, 2021, 2020 and 2019 was as follows:


	Con Edison			CECONY
(Millions of Dollars)	2021	2020	2019	2021	2020	2019
CHANGE IN PROJECTED BENEFIT OBLIGATION
Projected benefit obligation at beginning of year	$18,965	$16,792	$14,449	$17,821	$15,750	$13,542
Service cost – excluding administrative expenses	337	288	245	317	269	228
Interest cost on projected benefit obligation	471	549	601	443	515	564
Net actuarial loss/(gain)	(1,547)	2,281	2,191	(1,441)	2,154	2,076
Plan amendments	—	—	15	—	—	—
Benefits paid	(869)	(945)	(709)	(799)	(867)	(660)
PROJECTED BENEFIT OBLIGATION AT END OF YEAR	$17,357	$18,965	$16,792	$16,341	$17,821	$15,750
CHANGE IN PLAN ASSETS
Fair value of plan assets at beginning of year	$17,022	$15,608	$13,450	$16,147	$14,790	$12,744
Actual return on plan assets	1,935	1,927	2,556	1,838	1,830	2,425
Employer contributions	469	475	350	432	435	318
Benefits paid	(869)	(945)	(709)	(799)	(867)	(660)
Administrative expenses	(53)	(43)	(39)	(52)	(41)	(37)
FAIR VALUE OF PLAN ASSETS AT END OF YEAR	$18,504	$17,022	$15,608	$17,566	$16,147	$14,790
FUNDED STATUS	$1,147	$(1,943)	$(1,184)	$1,225	$(1,674)	$(960)
Unrecognized net loss	$205	$3,330	$2,604	$207	$3,145	$2,466
Unrecognized prior service costs/(credits)	(140)	(156)	(173)	(163)	(183)	(202)
Accumulated benefit obligation	15,469	16,768	15,015	14,504	15,676	14,010

The funded status of the programs at December 31, 2021, 2020 and 2019 were as follows:


	Con Edison			CECONY
(Millions of Dollars)	2021	2020	2019	2021	2020	2019
CHANGE IN BENEFIT OBLIGATION
Benefit obligation at beginning of year	$1,425	$1,357	$1,114	$1,209	$1,154	$913
Service cost	22	21	18	16	16	13
Interest cost on accumulated postretirement benefit obligation	33	37	44	28	31	36
Amendments	—	—	(14)	—	—	—
Net actuarial loss/(gain)	(13)	74	264	(3)	63	252
Benefits paid and administrative expenses, net of subsidies	(117)	(117)	(110)	(107)	(107)	(100)
Participant contributions	48	53	41	46	52	40
BENEFIT OBLIGATION AT END OF YEAR	$1,398	$1,425	$1,357	$1,189	$1,209	$1,154
CHANGE IN PLAN ASSETS
Fair value of plan assets at beginning of year	$1,115	$1,026	$885	$940	$872	$759
Actual return on plan assets	92	142	198	67	117	165
Employer contributions	6	7	7	3	4	6
Employer group waiver plan subsidies	21	20	23	19	19	22
Participant contributions	48	53	40	46	51	40
Benefits paid	(132)	(133)	(127)	(120)	(123)	(120)
FAIR VALUE OF PLAN ASSETS AT END OF YEAR	$1,150	$1,115	$1,026	$955	$940	$872
FUNDED STATUS	$(248)	$(310)	$(331)	$(234)	$(269)	$(282)
Unrecognized net loss/(gain)	$41	$115	$155	$67	$114	$149
Unrecognized prior service costs	(13)	(16)	(19)	—	(1)	(3)

Schedule of Assumptions

The actuarial assumptions were as follows:


	2021		2020		2019
Weighted-average assumptions used to determine benefit obligations at December 31:
Discount rate	3.00	%	2.55	%	3.35	%
Interest crediting rate for cash balance plan	3.50	%	3.00	%	3.30	%
Rate of compensation increase
CECONY	3.80	%	3.80	%	3.80	%
O&R	3.20	%	3.20	%	3.20	%
Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31:
Discount rate	2.55	%	3.35	%	4.25	%
Interest crediting rate for cash balance plan	3.00	%	3.30	%	4.00	%
Expected return on plan assets	7.00	%	7.00	%	7.00	%
Rate of compensation increase
CECONY	3.80	%	3.80	%	4.25	%
O&R	3.20	%	3.20	%	4.00	%

The actuarial assumptions were as follows:


	2021		2020		2019
Weighted-average assumptions used to determine benefit obligations at December 31:
Discount Rate
CECONY	2.75	%	2.25	%	3.10	%
O&R	3.00	%	2.55	%	3.35	%
Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31:
Discount Rate
CECONY	2.25	%	3.10	%	4.15	%
O&R	2.55	%	3.35	%	4.30	%
Expected Return on Plan Assets	6.80	%	6.80	%	6.80	%

Schedule of Expected Benefit Payments

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


(Millions of Dollars)	2022	2023	2024	2025	2026	2027-2031
Con Edison	$765	$782	$791	$841	$818	$4,219
CECONY	704	721	730	780	756	3,924

Based on current assumptions, the Companies expect to make the following benefit payments over the next ten years, net of receipt of governmental subsidies and participant contributions:


(Millions of Dollars)	2022	2023	2024	2025	2026	2027-2031
Con Edison	$75	$77	$77	$78	$78	$385
CECONY	84	86	86	87	88	435

Schedule of Plan Assets Allocations

The asset allocations for the pension plan at the end of 2021, 2020 and 2019, and the target allocation for 2022 are as follows:


	Target Allocation Range	Plan Assets at December 31,
Asset Category	2022	2021		2020		2019
Equity Securities	45% - 55%	50	%	51	%	51	%
Debt Securities	33% - 43%	38	%	38	%	38	%
Real Estate	10% - 14%	12	%	11	%	11	%
Total	100%	100	%	100	%	100	%

The asset allocations for CECONY’s other postretirement benefit plans at the end of 2021, 2020 and 2019, and the target allocation for 2022 are as follows:


	Target Allocation Range	Plan Assets at December 31,
Asset Category	2022	2021		2020		2019
Equity Securities	42%-80%	55	%	54	%	54	%
Debt Securities	20%-58%	45	%	46	%	46	%
Total	100%	100	%	100	%	100	%

Schedule of Fair Value of Plan Assets

The fair values of the pension plan assets at December 31, 2021 by asset category are as follows:


(Millions of Dollars)	Level 1	Level 2	Total
Investments within the fair value hierarchy
U.S. Equity (a)	$4,381	$—	$4,381
International Equity (b)	3,536	—	3,536
U.S. Government Issued Debt (c)		1,500	1,500
Corporate Bonds Debt (d)	—	3,936	3,936
Structured Assets Debt (e)	—	262	262
Other Fixed Income Debt (f)	—	1,186	1,186
Cash and Cash Equivalents (g)	80	425	505
Futures (h)	2	—	2
Total investments within the fair value hierarchy	$7,999	$7,309	$15,308
Investments measured at NAV per share (n)
Private Equity (i)			913
Real Estate (j)			2,306
Hedge Funds (k)			315
Total investments valued using NAV per share			$3,534
Funds for retiree health benefits (l)	(110)	(100)	(210)
Funds for retiree health benefits measured at NAV per share (l)(n)			(48)
Total funds for retiree health benefits			$(258)
Investments (excluding funds for retiree health benefits)	$7,889	$7,209	$18,584
Pending activities (m)			(80)
Total fair value of plan net assets			$18,504

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

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

(c)U.S. Government Issued Debt includes agency and treasury securities.

(d)Corporate Bonds Debt consists of debt issued by various corporations.

(e)Structured Assets Debt includes commercial-mortgage-backed securities and collateralized mortgage obligations.

(f)Other Fixed Income Debt includes municipal bonds, sovereign debt and regional governments.

(g)Cash and Cash Equivalents include short term investments, money markets, foreign currency and cash collateral.

(h)Futures consist of exchange-traded financial contracts encompassing U.S. Equity, International Equity and U.S. Government indices.

(i)Private Equity consists of global equity funds that are not exchange-traded.

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

(k)Hedge Funds are within a commingled structure which invests in various hedge fund managers who can invest in all financial instruments.

(l)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.

(m)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.

(n)In accordance with ASU 2015-07, Fair Value Measurements (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or its equivalent), certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy.

The fair values of the pension plan assets at December 31, 2020 by asset category are as follows:


(Millions of Dollars)	Level 1	Level 2	Total
Investments within the fair value hierarchy
U.S. Equity (a)	$4,202	$—	$4,202
International Equity (b)	3,693	—	3,693
U.S. Government Issued Debt (c)	—	1,424	1,424
Corporate Bonds Debt (d)	—	3,535	3,535
Structured Assets Debt (e)	—	188	188
Other Fixed Income Debt (f)	—	1,067	1,067
Cash and Cash Equivalents (g)	51	408	459

Total investments within the fair value hierarchy	$7,946	$6,622	$14,568
Investments measured at NAV per share (m)
Private Equity (h)			635
Real Estate (i)			1,880
Hedge Funds (j)			292
Total investments valued using NAV per share			$2,807
Funds for retiree health benefits (k)	(116)	(97)	(213)
Funds for retiree health benefits measured at NAV per share (k)(m)			(41)
Total funds for retiree health benefits			$(254)
Investments (excluding funds for retiree health benefits)	$7,830	$6,525	$17,121
Pending activities (l)			(99)
Total fair value of plan net assets			$17,022

(a) - (n) Reference is made to footnotes (a) through (n) in the above table of pension plan assets at December 31, 2021 by asset category.

The fair values of the plans' assets at December 31, 2021 by asset category as defined by the accounting rules for fair value measurements (see Note R) are as follows:


(Millions of Dollars)	Level 1	Level 2	Total
Equity (a)	$—	$474	$474
Other Fixed Income Debt (b)	—	379	379
Cash and Cash Equivalents (c)	—	22	22
Total investments	$—	$875	$875
Funds for retiree health benefits (d)	110	100	210
Investments (including funds for retiree health benefits)	$110	$975	$1,085
Funds for retiree health benefits measured at net asset value (d)(e)			48
Pending activities (f)			17
Total fair value of plan net assets			$1,150

(a)Equity includes a passively managed commingled index fund benchmarked to the MSCI All Country World Index.

(b)Other Fixed Income Debt includes a passively managed commingled index fund benchmarked to the Bloomberg Barclays U.S. Long Credit Index and an active separately managed fund indexed to the Bloomberg Barclays U.S. Long Credit Index.

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

(d)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.

(e)In accordance with ASU 2015-07, Fair Value Measurements (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or its equivalent), certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy.

(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 fair values of the plans' assets at December 31, 2020 by asset category (see Note R) are as follows:


(Millions of Dollars)	Level 1	Level 2	Total
Equity (a)	$—	$448	$448
Other Fixed Income Debt (b)	—	367	367
Cash and Cash Equivalents (c)	—	27	27
Total investments	$—	$842	$842
Funds for retiree health benefits (d)	116	97	213
Investments (including funds for retiree health benefits)	$116	$939	$1,055
Funds for retiree health benefits measured at net asset value (d)(e)			41
Pending activities (f)			19
Total fair value of plan net assets			$1,115

(a) - (f) Reference is made to footnotes (a) through (f) in the above table of other postretirement benefit plan assets at December 31, 2021 by asset category.

Schedule of Employer Contribution to Defined Savings Plan

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)	2021	2020	2019
Con Edison	$55	$52	$49
CECONY	46	43	42

Material Contingencies - Total Guarantees (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Guarantor Obligations [Line Items]
Total guarantees, by type and term	$ 2,157	$ 2,042
Con Edison Transmission
Guarantor Obligations [Line Items]
Total guarantees, by type and term	490
Energy transactions
Guarantor Obligations [Line Items]
Total guarantees, by type and term	831
Renewable electric projects
Guarantor Obligations [Line Items]
Total guarantees, by type and term	766
Other
Guarantor Obligations [Line Items]
Total guarantees, by type and term	70
0 – 3 years
Guarantor Obligations [Line Items]
Total guarantees, by type and term	1,348
0 – 3 years \| Con Edison Transmission
Guarantor Obligations [Line Items]
Total guarantees, by type and term	490
0 – 3 years \| Energy transactions
Guarantor Obligations [Line Items]
Total guarantees, by type and term	469
0 – 3 years \| Renewable electric projects
Guarantor Obligations [Line Items]
Total guarantees, by type and term	319
0 – 3 years \| Other
Guarantor Obligations [Line Items]
Total guarantees, by type and term	70
4 – 10 years
Guarantor Obligations [Line Items]
Total guarantees, by type and term	88
4 – 10 years \| Energy transactions
Guarantor Obligations [Line Items]
Total guarantees, by type and term	37
4 – 10 years \| Renewable electric projects
Guarantor Obligations [Line Items]
Total guarantees, by type and term	51
4 – 10 years \| Other
Guarantor Obligations [Line Items]
Total guarantees, by type and term	0
> 10 years
Guarantor Obligations [Line Items]
Total guarantees, by type and term	721
> 10 years \| Con Edison Transmission
Guarantor Obligations [Line Items]
Total guarantees, by type and term	0
> 10 years \| Energy transactions
Guarantor Obligations [Line Items]
Total guarantees, by type and term	325
> 10 years \| Renewable electric projects
Guarantor Obligations [Line Items]
Total guarantees, by type and term	396
> 10 years \| Other
Guarantor Obligations [Line Items]
Total guarantees, by type and term	$ 0

Derivative Instruments and Hedging Activities - Fair Values of Commodity Derivatives Including Offsetting of Assets and Liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Net fair value derivative assets/(liabilities)
Gross Amounts of Recognized Assets/ (Liabilities)	$ 25	$ (252)
Gross Amounts Offset	(26)	0
Net Amounts of Assets/ (Liabilities)	(1)	(252)
Margin deposits	1	3
Interest Rate Swap
Net fair value derivative assets/(liabilities)
Notional amount	1,031	863
Fair Value of Derivative Liabilities, Current
Fair value of derivative liabilities
Gross Amounts of Recognized Assets/ (Liabilities)	(131)	(174)
Gross Amounts Offset	43	11
Net Amounts of Assets/ (Liabilities)	(88)	(163)
Fair Value of Derivative Liabilities, Current \| Interest Rate Swap
Fair value of derivative liabilities
Net Amounts of Assets/ (Liabilities)	(20)	(24)
Fair Value of Derivative Liabilities, Non-current
Fair value of derivative liabilities
Gross Amounts of Recognized Assets/ (Liabilities)	(50)	(114)
Gross Amounts Offset	10	9
Net Amounts of Assets/ (Liabilities)	(40)	(105)
Fair Value of Derivative Liabilities, Non-current \| Interest Rate Swap
Fair value of derivative liabilities
Net Amounts of Assets/ (Liabilities)	(38)	(82)
Fair Value of Derivative Liabilities
Fair value of derivative liabilities
Gross Amounts of Recognized Assets/ (Liabilities)	(181)	(288)
Gross Amounts Offset	53	20
Net Amounts of Assets/ (Liabilities)	(128)	(268)
Fair Value of Derivative Assets, Current
Fair value of derivative assets
Gross Amounts of Recognized Assets/ (Liabilities)	135	20
Gross Amounts Offset	(64)	(12)
Net Amounts of Assets/ (Liabilities)	71	8
Fair Value of Derivative Assets, Non-current
Fair value of derivative assets
Gross Amounts of Recognized Assets/ (Liabilities)	71	16
Gross Amounts Offset	(15)	(8)
Net Amounts of Assets/ (Liabilities)	56	8
Fair Value of Derivative Assets
Fair value of derivative assets
Gross Amounts of Recognized Assets/ (Liabilities)	206	36
Gross Amounts Offset	(79)	(20)
Net Amounts of Assets/ (Liabilities)	127	$ 16
Fair Value of Derivative Assets \| Interest Rate Swap
Net fair value derivative assets/(liabilities)
Derivative asset, noncurrent	$ 4

Current Expected Credit Losses

12 Months Ended

Dec. 31, 2021

Credit Loss [Abstract]

Current Expected Credit Losses

In January 2020, the Companies adopted Accounting Standards Update (ASU) 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”.

Allowance for Uncollectible Accounts

The Utilities’ “Account receivable – customers” balance consists of utility bills due (bills are generally due the month following billing) from customers who have energy delivered, generated, or services provided by the Utilities. The balance also reflects the Utilities’ purchase of receivables from energy service companies to support the retail choice programs.

“Other receivables” balance generally reflects costs billed by the Utilities for goods and services provided to external parties, such as accommodation work for private parties and certain governmental entities, real estate rental and pole attachments. The Clean Energy Businesses’ other receivables balance includes bills related to the sale of energy from renewable electric projects.

The Clean Energy Businesses’ customer accounts receivable balance generally reflects the management of energy supply assets, energy-efficiency services to government and commercial customers, and the engineering, procurement, and construction services of renewable energy projects. The Clean Energy Businesses calculate an allowance for uncollectible accounts related to their energy services customers based on an aging and customer-specific analysis. The amount of such reserves was not material at December 31, 2021 and December 31, 2020.

The Companies develop expected loss estimates using past events data and consider current conditions and future reasonable and supportable forecasts. Changes to the Utilities’ reserve balances that result in write-offs of customer accounts receivable balances above existing rate allowances are not reflected in rates during the term of the current rate plans. For the Utilities’ customer accounts receivable allowance for uncollectible accounts, past events considered include write-offs relative to customer accounts receivable; current conditions include macro-and micro-economic conditions related to trends in the local economy, bankruptcy rates and aged customer accounts receivable balances, among other factors; and forecasts about the future include assumptions related to the level of write-offs and recoveries. Generally, the Utilities write off customer accounts receivable as uncollectible 90 days after the account is turned off for non-payment, or the account is closed during the collection process. See "COVID-19 Regulatory Matters" in Note B.

Other receivables allowance for uncollectible accounts is calculated based on a historical average of collections relative to total other receivables, including current receivables. Current macro- and micro-economic conditions are also considered when calculating the current reserve. Probable outcomes of pending litigation, whether favorable or unfavorable to the Companies, are also included in the consideration.

During the years ended December 31, 2021 and 2020, the potential economic impact of the COVID-19 pandemic was also considered in forward-looking projections related to write-off and recovery rates and resulted in increases to the allowance for uncollectible accounts. The increases to the allowance for customer uncollectible accounts for Con Edison and CECONY were $169 million and $166 million, respectively, for the year ended December 31, 2021. The increases to the allowance for uncollectible accounts for Con Edison and CECONY were $78 million and $73 million for the year ended December 31, 2020.

Customer accounts receivable and the associated allowance for uncollectible accounts are included in the line “Accounts receivable – customers” on the Companies’ consolidated balance sheets. Other receivables and the associated allowance for uncollectible accounts are included in “Other receivables” on the consolidated balance sheets.

The table below presents a rollforward by major portfolio segment type for the years ended December 31, 2021 and 2020:


	For the Year Ended December 31,
	Con Edison				CECONY
	Accounts receivable - customers		Other receivables		Accounts receivable - customers		Other receivables
(Millions of Dollars)	2021	2020	2021	2020	2021	2020	2021	2020
Allowance for credit losses
Beginning Balance at January 1,	$148	$70	$7	$4	$138	$65	$4	$3
Recoveries	14	8	1	—	12	6	1	—
Write-offs	(91)	(54)	(2)	(2)	(86)	(50)	(1)	(1)
Reserve adjustments	246	124	16	5	240	117	15	2
Ending Balance December 31,	$317	$148	$22	$7	$304	$138	$19	$4

Related Party Transactions (Tables)

12 Months Ended

Dec. 31, 2021

Summary of Costs of Administrative and Other Services Provided and Received

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, 2021, 2020 and 2019 were as follows:


	CECONY
(Millions of Dollars)	2021	2020	2019
Cost of services provided	$137	$128	$121
Cost of services received	68	66	64

Environmental Matters (Tables)

12 Months Ended

Dec. 31, 2021

Environmental Remediation Obligations [Abstract]

Accrued Liabilities and Regulatory Assets

The accrued liabilities and regulatory assets related to Superfund Sites at December 31, 2021 and 2020 were as follows:


	Con Edison		CECONY
(Millions of Dollars)	2021	2020	2021	2020
Accrued Liabilities:
Manufactured gas plant sites	$845	$752	$755	$676
Other Superfund Sites	95	105	95	104
Total	$940	$857	$850	$780
Regulatory assets	$938	$865	$860	$791

Environmental Remediation Costs

Environmental remediation costs incurred related to Superfund Sites at December 31, 2021 and 2020 were as follows:


	Con Edison		CECONY
(Millions of Dollars)	2021	2020	2021	2020
Remediation costs incurred	$25	$33	$24	$32

Accrued Liability for Asbestos Suits and Workers' Compensation Proceedings

The accrued liability for asbestos suits and workers’ compensation proceedings (including those related to asbestos exposure) and the amounts deferred as regulatory assets or liabilities for the Companies at December 31, 2021 and 2020 were as follows:


	Con Edison		CECONY
(Millions of Dollars)	2021	2020	2021	2020
Accrued liability – asbestos suits	$8	$8	$7	$7
Regulatory assets – asbestos suits	$8	$8	$7	$7
Accrued liability – workers’ compensation	$65	$72	$62	$68
Regulatory liabilities – workers’ compensation	$8	$3	$8	$3

Environmental Matters - Accrued Liability for Asbestos Suits and Workers' Compensation Proceedings (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Site Contingency [Line Items]
Regulatory assets	$ 3,504	$ 5,989
Regulatory liabilities	4,055	4,105
Asbestos Suits
Site Contingency [Line Items]
Accrued liability	7	7
Regulatory assets	7	7
Workers' Compensation
Site Contingency [Line Items]
Accrued liability	62	68
Regulatory liabilities	$ 8	$ 3

Other Postretirement Benefits (Tables)

12 Months Ended

Dec. 31, 2021

Retirement Benefits [Abstract]

Net Periodic Benefit Costs

The components of the Companies’ total periodic benefit costs for 2021, 2020 and 2019 were as follows:


	Con Edison			CECONY
(Millions of Dollars)	2021	2020	2019	2021	2020	2019
Service cost – including administrative expenses	$343	$293	$250	$321	$274	$232
Interest cost on projected benefit obligation	471	549	601	443	515	564
Expected return on plan assets	(1,096)	(1,034)	(988)	(1,040)	(980)	(936)
Recognition of net actuarial loss	787	699	518	746	661	492
Recognition of prior service credit	(17)	(16)	(17)	(19)	(19)	(19)
TOTAL PERIODIC BENEFIT COST	$488	$491	$364	$451	$451	$333
Cost capitalized	(154)	(130)	(108)	(146)	(123)	(102)
Reconciliation to rate level	(226)	(250)	(15)	(216)	(239)	(12)
Total expense recognized	$108	$111	$241	$89	$89	$219

The components of the Companies’ total periodic postretirement benefit costs for 2021, 2020 and 2019 were as follows:


	Con Edison			CECONY
(Millions of Dollars)	2021	2020	2019	2021	2020	2019
Service cost	$22	$21	$18	$16	$16	$13
Interest cost on accumulated other postretirement benefit obligation	33	37	44	28	31	36
Expected return on plan assets	(68)	(66)	(66)	(56)	(54)	(54)
Recognition of net actuarial loss/(gain)	31	37	(9)	27	36	(10)
Recognition of prior service credit	(3)	(3)	(2)	(1)	(2)	(2)
TOTAL PERIODIC POSTRETIREMENT BENEFIT COST/(CREDIT)	$15	$26	$(15)	$14	$27	$(17)
Cost capitalized	(9)	(9)	(7)	(7)	(7)	(5)
Reconciliation to rate level	(7)	(17)	12	(12)	(25)	7
Total credit recognized	$(1)	$—	$(10)	$(5)	$(5)	$(15)

Schedule of Funded Status

The funded status at December 31, 2021, 2020 and 2019 was as follows:


	Con Edison			CECONY
(Millions of Dollars)	2021	2020	2019	2021	2020	2019
CHANGE IN PROJECTED BENEFIT OBLIGATION
Projected benefit obligation at beginning of year	$18,965	$16,792	$14,449	$17,821	$15,750	$13,542
Service cost – excluding administrative expenses	337	288	245	317	269	228
Interest cost on projected benefit obligation	471	549	601	443	515	564
Net actuarial loss/(gain)	(1,547)	2,281	2,191	(1,441)	2,154	2,076
Plan amendments	—	—	15	—	—	—
Benefits paid	(869)	(945)	(709)	(799)	(867)	(660)
PROJECTED BENEFIT OBLIGATION AT END OF YEAR	$17,357	$18,965	$16,792	$16,341	$17,821	$15,750
CHANGE IN PLAN ASSETS
Fair value of plan assets at beginning of year	$17,022	$15,608	$13,450	$16,147	$14,790	$12,744
Actual return on plan assets	1,935	1,927	2,556	1,838	1,830	2,425
Employer contributions	469	475	350	432	435	318
Benefits paid	(869)	(945)	(709)	(799)	(867)	(660)
Administrative expenses	(53)	(43)	(39)	(52)	(41)	(37)
FAIR VALUE OF PLAN ASSETS AT END OF YEAR	$18,504	$17,022	$15,608	$17,566	$16,147	$14,790
FUNDED STATUS	$1,147	$(1,943)	$(1,184)	$1,225	$(1,674)	$(960)
Unrecognized net loss	$205	$3,330	$2,604	$207	$3,145	$2,466
Unrecognized prior service costs/(credits)	(140)	(156)	(173)	(163)	(183)	(202)
Accumulated benefit obligation	15,469	16,768	15,015	14,504	15,676	14,010

The funded status of the programs at December 31, 2021, 2020 and 2019 were as follows:


	Con Edison			CECONY
(Millions of Dollars)	2021	2020	2019	2021	2020	2019
CHANGE IN BENEFIT OBLIGATION
Benefit obligation at beginning of year	$1,425	$1,357	$1,114	$1,209	$1,154	$913
Service cost	22	21	18	16	16	13
Interest cost on accumulated postretirement benefit obligation	33	37	44	28	31	36
Amendments	—	—	(14)	—	—	—
Net actuarial loss/(gain)	(13)	74	264	(3)	63	252
Benefits paid and administrative expenses, net of subsidies	(117)	(117)	(110)	(107)	(107)	(100)
Participant contributions	48	53	41	46	52	40
BENEFIT OBLIGATION AT END OF YEAR	$1,398	$1,425	$1,357	$1,189	$1,209	$1,154
CHANGE IN PLAN ASSETS
Fair value of plan assets at beginning of year	$1,115	$1,026	$885	$940	$872	$759
Actual return on plan assets	92	142	198	67	117	165
Employer contributions	6	7	7	3	4	6
Employer group waiver plan subsidies	21	20	23	19	19	22
Participant contributions	48	53	40	46	51	40
Benefits paid	(132)	(133)	(127)	(120)	(123)	(120)
FAIR VALUE OF PLAN ASSETS AT END OF YEAR	$1,150	$1,115	$1,026	$955	$940	$872
FUNDED STATUS	$(248)	$(310)	$(331)	$(234)	$(269)	$(282)
Unrecognized net loss/(gain)	$41	$115	$155	$67	$114	$149
Unrecognized prior service costs	(13)	(16)	(19)	—	(1)	(3)

Schedule of Actuarial Assumptions

The actuarial assumptions were as follows:


	2021		2020		2019
Weighted-average assumptions used to determine benefit obligations at December 31:
Discount rate	3.00	%	2.55	%	3.35	%
Interest crediting rate for cash balance plan	3.50	%	3.00	%	3.30	%
Rate of compensation increase
CECONY	3.80	%	3.80	%	3.80	%
O&R	3.20	%	3.20	%	3.20	%
Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31:
Discount rate	2.55	%	3.35	%	4.25	%
Interest crediting rate for cash balance plan	3.00	%	3.30	%	4.00	%
Expected return on plan assets	7.00	%	7.00	%	7.00	%
Rate of compensation increase
CECONY	3.80	%	3.80	%	4.25	%
O&R	3.20	%	3.20	%	4.00	%

The actuarial assumptions were as follows:


	2021		2020		2019
Weighted-average assumptions used to determine benefit obligations at December 31:
Discount Rate
CECONY	2.75	%	2.25	%	3.10	%
O&R	3.00	%	2.55	%	3.35	%
Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31:
Discount Rate
CECONY	2.25	%	3.10	%	4.15	%
O&R	2.55	%	3.35	%	4.30	%
Expected Return on Plan Assets	6.80	%	6.80	%	6.80	%

Schedule of Health Care Cost Trend Rates

The health care cost trend rates for covered medical and prescription medication expenses used to determine the accumulated other postretirement benefit obligations (APBO) at December 31, 2021 were assumed to increase each year, with the initial rate gradually decreasing to the ultimate rate as follows:


	Initial Cost Trend Rate	Ultimate Cost Trend Rate	Year That Ultimate Rate is Reached
Pre-65 Medical	6.80%	4.50%	2034
Post-65 Medical	4.50%	4.50%	—
Prescription Medications	7.25%	4.50%	2033

Schedule of Expected Benefit Payments

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


(Millions of Dollars)	2022	2023	2024	2025	2026	2027-2031
Con Edison	$765	$782	$791	$841	$818	$4,219
CECONY	704	721	730	780	756	3,924

Based on current assumptions, the Companies expect to make the following benefit payments over the next ten years, net of receipt of governmental subsidies and participant contributions:


(Millions of Dollars)	2022	2023	2024	2025	2026	2027-2031
Con Edison	$75	$77	$77	$78	$78	$385
CECONY	84	86	86	87	88	435

Schedule of Plan Assets Allocations

The asset allocations for the pension plan at the end of 2021, 2020 and 2019, and the target allocation for 2022 are as follows:


	Target Allocation Range	Plan Assets at December 31,
Asset Category	2022	2021		2020		2019
Equity Securities	45% - 55%	50	%	51	%	51	%
Debt Securities	33% - 43%	38	%	38	%	38	%
Real Estate	10% - 14%	12	%	11	%	11	%
Total	100%	100	%	100	%	100	%

The asset allocations for CECONY’s other postretirement benefit plans at the end of 2021, 2020 and 2019, and the target allocation for 2022 are as follows:


	Target Allocation Range	Plan Assets at December 31,
Asset Category	2022	2021		2020		2019
Equity Securities	42%-80%	55	%	54	%	54	%
Debt Securities	20%-58%	45	%	46	%	46	%
Total	100%	100	%	100	%	100	%

Schedule of Fair Value of Plan Assets

The fair values of the pension plan assets at December 31, 2021 by asset category are as follows:


(Millions of Dollars)	Level 1	Level 2	Total
Investments within the fair value hierarchy
U.S. Equity (a)	$4,381	$—	$4,381
International Equity (b)	3,536	—	3,536
U.S. Government Issued Debt (c)		1,500	1,500
Corporate Bonds Debt (d)	—	3,936	3,936
Structured Assets Debt (e)	—	262	262
Other Fixed Income Debt (f)	—	1,186	1,186
Cash and Cash Equivalents (g)	80	425	505
Futures (h)	2	—	2
Total investments within the fair value hierarchy	$7,999	$7,309	$15,308
Investments measured at NAV per share (n)
Private Equity (i)			913
Real Estate (j)			2,306
Hedge Funds (k)			315
Total investments valued using NAV per share			$3,534
Funds for retiree health benefits (l)	(110)	(100)	(210)
Funds for retiree health benefits measured at NAV per share (l)(n)			(48)
Total funds for retiree health benefits			$(258)
Investments (excluding funds for retiree health benefits)	$7,889	$7,209	$18,584
Pending activities (m)			(80)
Total fair value of plan net assets			$18,504