Edgar Filing: CONSOLIDATED EDISON CO OF NEW YORK INC

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For the quarterly period ended September 30, 2009

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


x		Quarterly Report Pursuant To Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended SEPTEMBER 30, 2009

OR

¨		Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.


Con Edison				Yes x No ¨

Con Edison of New York				Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).


Con Edison				Yes x No ¨

Con Edison of New York				Yes x No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.


Con Edison


Large accelerated filer x		Accelerated filer ¨		Non-accelerated filer ¨		Smaller reporting company ¨



Con Edison of New York


Large accelerated filer ¨		Accelerated filer ¨		Non-accelerated filer x		Smaller reporting company ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).


Con Edison				Yes ¨ No x

Con Edison of New York				Yes ¨ No x

As of October 29, 2009, Con Edison had outstanding 275,491,885 Common Shares ($.10 par value). All of the outstanding common equity of Con Edison of New York is held by Con Edison.

Filing Format

This Quarterly Report on Form 10-Q is a combined report being filed separately by two different registrants: Consolidated Edison, Inc. (Con Edison) and Consolidated Edison Company of New York, Inc. (Con Edison of New York). Con Edison of New York is a subsidiary of Con Edison and, as such, the information in this report about Con Edison of New York also applies to Con Edison. As used in this report, the term the “Companies” refers to Con Edison and Con Edison of New York. However, Con Edison of New York makes no representation as to the information contained in this report relating to Con Edison or the subsidiaries of Con Edison other than itself.

TABLE OF CONTENTS


		PAGE
Glossary of Terms		4

PART I—Financial Information

ITEM 1	Financial Statements (Unaudited)
	Con Edison
	Consolidated Balance Sheet	6
	Consolidated Income Statement	8
	Consolidated Statement of Comprehensive Income	9
	Consolidated Statement of Common Shareholders’ Equity	10
	Consolidated Statement of Cash Flows	11
	Con Edison of New York
	Consolidated Balance Sheet	12
	Consolidated Income Statement	14
	Consolidated Statement of Comprehensive Income	15
	Consolidated Statement of Common Shareholder’s Equity	16
	Consolidated Statement of Cash Flows	17
	Notes to Financial Statements (Unaudited)	18
ITEM 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	45
ITEM 3	Quantitative and Qualitative Disclosures About Market Risk	79
ITEM 4	Controls and Procedures	79
ITEM 4T	Controls and Procedures	79

PART II—Other Information
ITEM 1	Legal Proceedings	80
ITEM 1A	Risk Factors	80
ITEM 6	Exhibits	81
Signatures		82

GLOSSARY OF TERMS

The following is a glossary of frequently used abbreviations or acronyms that are found in the Companies’ SEC reports:


Con Edison Companies
Con Edison		Consolidated Edison, Inc.
Con Edison Communications		Con Edison Communications, LLC
Con Edison Development		Consolidated Edison Development, Inc.
Con Edison Energy		Consolidated Edison Energy, Inc.
Con Edison of New York		Consolidated Edison Company of New York, Inc.
Con Edison Solutions		Consolidated Edison Solutions, Inc.
O&R		Orange and Rockland Utilities, Inc.
Pike		Pike County Light & Power Company
RECO		Rockland Electric Company
The Companies		Con Edison and Con Edison of New York
The Utilities		Con Edison of New York and O&R

Regulatory and State Agencies
ALJs		Administrative Law Judges
DEC		New York State Department of Environmental Conservation
EPA		Environmental Protection Agency
FERC		Federal Energy Regulatory Commission
IRS		Internal Revenue Service
ISO-NE		ISO New England
NJBPU		New Jersey Board of Public Utilities
NJDEP		New Jersey Department of Environmental Protection
NYAG		New York Attorney General
NYISO		New York Independent System Operator
NYPA		New York Power Authority
NYSERDA		New York State Energy Research and Development Authority
NYSRC		New York State Reliability Council
PJM		PJM Interconnection
PSC		New York State Public Service Commission
PPUC		Pennsylvania Public Utility Commission
SEC		Securities and Exchange Commission

Other
ABO		Accumulated Benefit Obligation
APB		Accounting Principles Board
AFDC		Allowance for funds used during construction
CO₂		Carbon dioxide
COSO		Committee of Sponsoring Organizations Treadway Commission
DIG		Derivatives Implementation Group
District Court		The United States District Court for the Southern District of New York
dths		Dekatherms
EITF		Emerging Issues Task Force


Other
EMF		Electric and magnetic fields
ERRP		East River Repowering Project
FASB		Financial Accounting Standards Board
FIN		FASB Interpretation No.
First Quarter Form 10-Q		The Companies’ combined Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2009
Fitch		Fitch Ratings
Form 10-K		The Companies’ combined Annual Report on Form 10-K for the year ended December 31, 2008
FSP		FASB Staff Position
GHG		Greenhouse gases
kV		Kilovolts
kWh		Kilowatt-hour
LILO		Lease In/Lease Out
LTIP		Long Term Incentive Plan
MD&A		Management’s Discussion and Analysis of Financial Condition and Results of Operations
mdths		Thousand dekatherms
MGP Sites		Manufactured gas plant sites
mmlbs		Million pounds
Moody’s		Moody’s Investors Service
MVA		Megavolt amperes
MW		Megawatts or thousand kilowatts
MWH		Megawatt hour
Net T&D Revenues		Revenue requirement impact resulting from the reconciliation pursuant to Con Edison of New York’s electric rate agreement of the differences between the actual amount of transmission and distribution utility plant, net of depreciation, to the amount reflected in electric rates
NUGs		Non-utility generators
OCI		Other Comprehensive Income
PCBs		Polychlorinated biphenyls
PPA		Power purchase agreement
PRP		Potentially responsible party
S&P		Standard & Poor’s Rating Services
SFAS		Statement of Financial Accounting Standards
SO₂		Sulfur dioxide
SSCM		Simplified service cost method
Second Quarter Form 10-Q		The Companies’ combined Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2009
Superfund		Federal Comprehensive Environmental Response, Compensation and Liability Act of 1980 and similar state statutes
Third Quarter Form 10-Q		The Companies’ combined Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2009
VaR		Value-at-Risk

VIE		Variable interest entity

Consolidated Edison, Inc.

CONSOLIDATED BALANCE SHEET

(UNAUDITED)


	September 30, 2009		December 31, 2008
	(Millions of Dollars)
ASSETS
UTILITY PLANT, AT ORIGINAL COST
Electric	$	18,345	$	17,483
Gas		3,896		3,696
Steam		1,906		1,849
General		1,848		1,795
TOTAL		25,995		24,823
Less: Accumulated depreciation		5,322		5,079
Net		20,673		19,744
Construction work in progress		1,254		1,109
NET UTILITY PLANT		21,927		20,853
NON-UTILITY PLANT
Non-utility property, less accumulated depreciation of $44 and $40 in 2009 and 2008, respectively		19		20
Construction work in progress		3		1
NET PLANT		21,949		20,874
CURRENT ASSETS
Cash and temporary cash investments		75		74
Accounts receivable—customers, less allowance for uncollectible accounts of $67 and $60 in 2009 and 2008, respectively		1,043		1,098
Accrued unbilled revenue		494		131
Other receivables, less allowance for uncollectible accounts of $5 and $4 in 2009 and 2008, respectively		216		194
Fuel oil, at average cost		30		37
Gas in storage, at average cost		208		325
Materials and supplies, at average cost		160		154
Prepayments		440		697
Fair value of derivative assets		169		162
Recoverable energy costs		51		172
Deferred derivative losses		152		288
Other current assets		189		37
TOTAL CURRENT ASSETS		3,227		3,369
INVESTMENTS		371		356
DEFERRED CHARGES, REGULATORY ASSETS AND NONCURRENT ASSETS
Goodwill		416		411
Intangible assets, less accumulated amortization of $2 in 2009 and 2008		4		5
Regulatory assets		7,944		8,055
Other deferred charges and noncurrent assets		301		428
TOTAL DEFERRED CHARGES, REGULATORY ASSETS AND NONCURRENT ASSETS		8,665		8,899
TOTAL ASSETS	$	34,212	$	33,498

The accompanying notes are an integral part of these financial statements.

Consolidated Edison, Inc.

CONSOLIDATED BALANCE SHEET

(UNAUDITED)


	September 30, 2009		December 31, 2008
	(Millions of Dollars)
CAPITALIZATION AND LIABILITIES
CAPITALIZATION
Common shareholders’ equity (See Statement of Common Shareholders’ Equity)	$	9,943	$	9,698
Preferred stock of subsidiary		213		213
Long-term debt		9,363		9,232
TOTAL CAPITALIZATION		19,519		19,143
NONCURRENT LIABILITIES
Obligations under capital leases		13		17
Provision for injuries and damages		175		169
Pensions and retiree benefits		4,192		4,511
Superfund and other environmental costs		225		250
Uncertain income taxes		—		118
Asset retirement obligations		123		115
Fair value of derivative liabilities		122		120
Other noncurrent liabilities		99		79
TOTAL NONCURRENT LIABILITIES		4,949		5,379
CURRENT LIABILITIES
Long-term debt due within one year		888		482
Notes payable		509		363
Accounts payable		928		1,161
Customer deposits		271		265
Accrued taxes		48		57
Uncertain income taxes		99		—
Accrued interest		192		139
Accrued wages		81		88
Fair value of derivative liabilities		125		192
Deferred derivative gains		14		23
Deferred income taxes—recoverable energy costs		21		70
Other current liabilities		336		365
TOTAL CURRENT LIABILITIES		3,512		3,205
DEFERRED CREDITS AND REGULATORY LIABILITIES
Deferred income taxes and investment tax credits		5,353		4,999
Regulatory liabilities		839		737
Other deferred credits		40		35
TOTAL DEFERRED CREDITS AND REGULATORY LIABILITIES		6,232		5,771
TOTAL CAPITALIZATION AND LIABILITIES	$	34,212	$	33,498

The accompanying notes are an integral part of these financial statements.

Consolidated Edison, Inc.

CONSOLIDATED INCOME STATEMENT

(UNAUDITED)


	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2009			2008			2009			2008
	(Millions of Dollars/Except Share Data)
OPERATING REVENUES
Electric	$	2,604		$	2,922		$	6,362		$	6,752
Gas		208			273			1,430			1,545
Steam		77			111			521			529
Non-utility		600			552			1,445			1,758
TOTAL OPERATING REVENUES		3,489			3,858			9,758			10,584
OPERATING EXPENSES
Purchased power		1,338			2,016			3,543			4,670
Fuel		83			179			403			503
Gas purchased for resale		89			132			723			871
Other operations and maintenance		676			590			1,879			1,699
Depreciation and amortization		200			183			589			531
Taxes, other than income taxes		418			356			1,145			1,033
Income taxes		201			92			378			429
TOTAL OPERATING EXPENSES		3,005			3,548			8,660			9,736
Gain on sale of generation projects		—			1			—			261
OPERATING INCOME		484			311			1,098			1,109
OTHER INCOME (DEDUCTIONS)
Investment and other income		3			10			25			79
Allowance for equity funds used during construction		4			2			9			6
Other deductions		(3	)		(3	)		(11	)		(13	)
Income taxes		6			4			9			(17	)
TOTAL OTHER INCOME (DEDUCTIONS)		10			13			32			55
INTEREST EXPENSE
Interest on long-term debt		148			135			441			379
Other interest		10			6			20			22
Allowance for borrowed funds used during construction		(3	)		(2	)		(6	)		(8	)
NET INTEREST EXPENSE		155			139			455			393
INCOME FROM CONTINUING OPERATIONS		339			185			675			771
INCOME FROM DISCONTINUED OPERATIONS
Gain on sale of generation projects, net of tax expense of $174 in 2008		—			—			—			270
Income from discontinued operations, net of tax expense of $0 and $3 in 2008		—			—			—			4
TOTAL INCOME FROM DISCONTINUED OPERATIONS		—			—			—			274
NET INCOME		339			185			675			1,045
Preferred stock dividend requirements of subsidiary		(3	)		(3	)		(9	)		(9	)
NET INCOME FOR COMMON STOCK	$	336		$	182		$	666		$	1,036
EARNINGS PER COMMON SHARE—BASIC
Continuing operations	$	1.22		$	0.66		$	2.43		$	2.79
Discontinued operations		—			—			—			1.01
Net income for common stock	$	1.22		$	0.66		$	2.43		$	3.80
EARNINGS PER COMMON SHARE—DILUTED
Continuing operations	$	1.22		$	0.66		$	2.42		$	2.79
Discontinued operations		—			—			—			1.00
Net income for common stock	$	1.22		$	0.66		$	2.42		$	3.79
DIVIDENDS DECLARED PER SHARE OF COMMON STOCK	$	0.59		$	0.585		$	1.77		$	1.755
AVERAGE NUMBER OF SHARES OUTSTANDING—BASIC (IN MILLIONS)		275.1			273.2			274.5			272.7
AVERAGE NUMBER OF SHARES OUTSTANDING—DILUTED (IN MILLIONS)		276.0			273.8			275.4			273.3

The accompanying notes are an integral part of these financial statements.

Consolidated Edison, Inc.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(UNAUDITED)


	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2009			2008			2009			2008
	(Millions of Dollars)
NET INCOME	$	339		$	185		$	675		$	1,045
OTHER COMPREHENSIVE INCOME, NET OF TAXES
Pension plan liability adjustments, net of taxes of $1 and $3 in 2009 and $1 and $2 in 2008, respectively		2			1			5			3
Unrealized losses on derivatives qualified as cash flow hedges, net of taxes of $(1) in 2008		—			—			—			(1	)
Less: Reclassification adjustment for losses included in net income, net of taxes of $1 and $1 in 2009 and $1 and $0 in 2008 respectively		1			1			1			—
Less: Reclassification adjustment for unrealized losses included in regulatory assets, net of taxes of $(5) in 2008		—			—			—			(8	)
TOTAL OTHER COMPREHENSIVE INCOME, NET OF TAXES		1			—			4			10
COMPREHENSIVE INCOME		340			185			679			1,055
Preferred stock dividend requirements of subsidiary		(3	)		(3	)		(9	)		(9	)
COMPREHENSIVE INCOME FOR COMMON STOCK	$	337		$	182		$	670		$	1,046

The accompanying notes are an integral part of these financial statements.

Consolidated Edison, Inc.

CONSOLIDATED STATEMENT OF COMMON SHAREHOLDERS’ EQUITY

(UNAUDITED)


	Common Stock			Additional Paid-In Capital		Retained Earnings			Treasury Stock				Capital Stock Expense			Accumulated Other Comprehensive Income/(Loss)			Total
	Shares	Amount		Additional Paid-In Capital		Retained Earnings			Shares	Amount			Capital Stock Expense			Accumulated Other Comprehensive Income/(Loss)			Total
	(Millions of Dollars/Except Share Data)
BALANCE AS OF DECEMBER 31, 2007	272,024,874	$	29	$	4,038	$	6,113		23,210,700	$	(1,001	)	$	(60	)	$	(43	)	$	9,076

Net income for common stock							303													303
Common stock dividends							(160	)												(160	)
Issuance of common shares—dividend reinvestment and employee stock plans	476,809				21															21
Other comprehensive income																	7			7
Adjustment for adoption of fair value standard							17													17
BALANCE AS OF MARCH 31, 2008	272,501,683	$	29	$	4,059	$	6,273		23,210,700	$	(1,001	)	$	(60	)	$	(36	)	$	9,264

Net income for common stock							552													552
Common stock dividends							(162	)												(162	)
Issuance of common shares—dividend reinvestment and employee stock plans	493,092				23															23
Other comprehensive income																	3			3
BALANCE AS OF JUNE 30, 2008	272,994,775	$	29	$	4,082	$	6,663		23,210,700	$	(1,001	)	$	(60	)	$	(33	)	$	9,680

Net income for common stock							182													182
Common stock dividends							(160	)												(160	)
Issuance of common shares—dividend reinvestment and employee stock plans	532,679				21															21
BALANCE AS OF SEPTEMBER 30, 2008	273,527,454	$	29	$	4,103	$	6,685		23,210,700	$	(1,001	)	$	(60	)	$	(33	)	$	9,723
BALANCE AS OF DECEMBER 31, 2008	273,721,686	$	29	$	4,112	$	6,685		23,210,700	$	(1,001	)	$	(60	)	$	(67	)	$	9,698

Net income for common Stock							180													180
Common stock dividends							(162	)												(162	)
Issuance of common shares—dividend reinvestment and employee stock plans	532,533				20															20
Other comprehensive income																	1			1
BALANCE AS OF MARCH 31, 2009	274,254,219	$	29	$	4,132	$	6,703		23,210,700	$	(1,001	)	$	(60	)	$	(66	)	$	9,737

Net income for common stock							150													150
Common stock dividends							(162	)												(162	)
Issuance of common shares—dividend reinvestment and employee stock plans	584,916				21															21
Other comprehensive income																	2			2
BALANCE AS OF JUNE 30, 2009	274,839,135	$	29	$	4,153	$	6,691		23,210,700	$	(1,001	)	$	(60	)	$	(64	)	$	9,748

Net income for common stock							336													336
Common stock dividends							(162	)												(162	)
Issuance of common shares—dividend reinvestment and employee stock plans	520,041				20															20
Other comprehensive income																	1			1
BALANCE AS OF SEPTEMBER 30, 2009	275,359,176	$	29	$	4,173	$	6,865		23,210,700	$	(1,001	)	$	(60	)	$	(63	)	$	9,943

The accompanying notes are an integral part of these financial statements.

Consolidated Edison, Inc.

CONSOLIDATED STATEMENT OF CASH FLOWS

(UNAUDITED)


	For the Nine Months Ended September 30,
	2009			2008
	(Millions of Dollars)
OPERATING ACTIVITIES
Net income	$	675		$	1,045
PRINCIPAL NON-CASH CHARGES/(CREDITS) TO INCOME
Depreciation and amortization		589			531
Deferred income taxes		255			337
Rate case amortization and accruals		(38	)		(135	)
Net transmission and distribution reconciliation		—			(48	)
Common equity component of allowance for funds used during construction		(9	)		(6	)
Pre-tax gain on sale of generation projects		—			(704	)
Net derivative losses/(gains)		(2	)		43
Other non-cash items (net)		(48	)		21
CHANGES IN ASSETS AND LIABILITIES
Accounts receivable—customers, less allowance for uncollectibles		55			(40	)
Materials and supplies, including fuel oil and gas in storage		118			(173	)
Other receivables and other current assets		(171	)		(104	)
Prepayments		257			(690	)
Recoverable energy costs		102			230
Accounts payable		(168	)		(235	)
Pensions and retiree benefits		(35	)		(60	)
Accrued taxes		(9	)		87
Accrued interest		53			19
Deferred charges, noncurrent assets and other regulatory assets		(9	)		(265	)
Deferred credits and other regulatory liabilities		(118	)		187
Other assets		(4	)		145
Other liabilities		(33	)		(135	)
NET CASH FLOWS FROM OPERATING ACTIVITIES		1,460			50
INVESTING ACTIVITIES
Utility construction expenditures		(1,524	)		(1,602	)
Cost of removal less salvage		(126	)		(139	)
Non-utility construction expenditures		(5	)		2
Common equity component of allowance for funds used during construction		9			6
Proceeds from sale of generation projects		—			1,477
Purchase of ownership interest in Hawkeye lease		—			(12	)
Purchase of ownership interest in Newington SCS		—			(20	)
NET CASH FLOWS USED IN INVESTING ACTIVITIES		(1,646	)		(288	)
FINANCING ACTIVITIES
Net proceeds from/(payments of) short-term debt		146			(238	)
Retirement of long-term debt		(279	)		(485	)
Issuance of long-term debt		750			1,250
Issuance of common stock		25			37
Debt issuance costs		(5	)		(10	)
Common stock dividends		(450	)		(458	)
NET CASH FLOWS FROM FINANCING ACTIVITIES		187			96
CASH AND TEMPORARY CASH INVESTMENTS:
NET CHANGE FOR THE PERIOD		1			(142	)
BALANCE AT BEGINNING OF PERIOD		74			210
BALANCE AT END OF PERIOD	$	75		$	68
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid during the period for:
Interest	$	377		$	378
Income taxes	$	8		$	217

The accompanying notes are an integral part of these financial statements.

Consolidated Edison Company of New York, Inc.

CONSOLIDATED BALANCE SHEET

(UNAUDITED)


	September 30, 2009		December 31, 2008
	(Millions of Dollars)
ASSETS
UTILITY PLANT AT ORIGINAL COST
Electric	$	17,285	$	16,460
Gas		3,457		3,273
Steam		1,906		1,849
General		1,696		1,646
TOTAL		24,344		23,228
Less: Accumulated depreciation		4,863		4,636
Net		19,481		18,592
Construction work in progress		1,191		1,051
NET UTILITY PLANT		20,672		19,643
NON-UTILITY PROPERTY
Non-utility property, less accumulated depreciation of $20 and $19 in 2009 and 2008, respectively		9		11
NET PLANT		20,681		19,654
CURRENT ASSETS
Cash and temporary cash investments		54		37
Accounts receivable—customers, less allowance for uncollectible accounts of $60 and $53 in 2009 and 2008, respectively		898		937
Other receivables, less allowance for uncollectible accounts of $4 and $3 in 2009 and 2008, respectively		103		127
Accrued unbilled revenue		347		—
Accounts receivable from affiliated companies		78		272
Fuel oil, at average cost		30		37
Gas in storage, at average cost		166		261
Materials and supplies, at average cost		148		145
Prepayments		361		538
Fair value of derivative assets		75		71
Recoverable energy costs		—		146
Deferred derivative losses		111		247
Other current assets		161		22
TOTAL CURRENT ASSETS		2,532		2,840
INVESTMENTS		113		93
DEFERRED CHARGES, REGULATORY ASSETS AND NONCURRENT ASSETS
Regulatory assets		7,392		7,486
Other deferred charges and noncurrent assets		207		342
TOTAL DEFERRED CHARGES, REGULATORY ASSETS AND NONCURRENT ASSETS		7,599		7,828
TOTAL ASSETS	$	30,925	$	30,415

The accompanying notes are an integral part of these financial statements.

Consolidated Edison Company of New York, Inc.

CONSOLIDATED BALANCE SHEET

(UNAUDITED)


	September 30, 2009		December 31, 2008
	(Millions of Dollars)
CAPITALIZATION AND LIABILITIES
CAPITALIZATION
Common shareholder’s equity (See Statement of Common Shareholder’s Equity)	$	9,118	$	8,991
Preferred stock		213		213
Long-term debt		8,619		8,494
TOTAL CAPITALIZATION		17,950		17,698
NONCURRENT LIABILITIES
Obligations under capital leases		13		17
Provision for injuries and damages		168		163
Pensions and retiree benefits		3,771		4,059
Superfund and other environmental costs		172		196
Uncertain income taxes		—		108
Asset retirement obligations		123		115
Fair value of derivative liabilities		24		29
Other noncurrent liabilities		65		61
TOTAL NONCURRENT LIABILITIES		4,336		4,748
CURRENT LIABILITIES
Long-term debt due within one year		825		475
Notes payable		427		253
Accounts payable		718		952
Accounts payable to affiliated companies		15		26
Customer deposits		256		250
Accrued taxes		24		41
Accrued taxes to affiliated companies		39		25
Uncertain income taxes		89		—
Accrued interest		162		131
Accrued wages		78		80
Fair value of derivative liabilities		28		87
Deferred derivative gains		14		23
Deferred income taxes—recoverable energy costs		—		59
Other current liabilities		293		325
TOTAL CURRENT LIABILITIES		2,968		2,727
DEFERRED CREDITS AND REGULATORY LIABILITIES
Deferred income taxes and investment tax credits		4,939		4,611
Regulatory liabilities		695		600
Other deferred credits		37		31
TOTAL DEFERRED CREDITS AND REGULATORY LIABILITIES		5,671		5,242
TOTAL CAPITALIZATION AND LIABILITIES	$	30,925	$	30,415

The accompanying notes are an integral part of these financial statements.

Consolidated Edison Company of New York, Inc.

CONSOLIDATED INCOME STATEMENT

(UNAUDITED)


	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2009			2008			2009			2008
	(Millions of Dollars)
OPERATING REVENUES
Electric	$	2,395		$	2,670		$	5,865		$	6,162
Gas		183			242			1,259			1,366
Steam		77			111			521			529
TOTAL OPERATING REVENUES		2,655			3,023			7,645			8,057
OPERATING EXPENSES
Purchased power		753			1,195			2,009			2,620
Fuel		83			178			404			501
Gas purchased for resale		76			110			618			752
Other operations and maintenance		573			508			1,606			1,458
Depreciation and amortization		188			172			554			497
Taxes, other than income taxes		403			341			1,101			986
Income taxes		162			145			338			298
TOTAL OPERATING EXPENSES		2,238			2,649			6,630			7,112
OPERATING INCOME		417			374			1,015			945
OTHER INCOME (DEDUCTIONS)
Investment and other income		8			4			23			18
Allowance for equity funds used during construction		3			2			8			5
Other deductions		(3	)		(3	)		(10	)		(10	)
Income taxes		3			—			(1	)		(2	)
TOTAL OTHER INCOME (DEDUCTIONS)		11			3			20			11
INTEREST EXPENSE
Interest on long-term debt		134			120			399			347
Other interest		11			6			19			16
Allowance for borrowed funds used during construction		(2	)		(2	)		(6	)		(6	)
NET INTEREST EXPENSE		143			124			412			357
NET INCOME		285			253			623			599
Preferred stock dividend requirements		(3	)		(3	)		(8	)		(9	)
NET INCOME FOR COMMON STOCK	$	282		$	250		$	615		$	590

The accompanying notes are an integral part of these financial statements.

Consolidated Edison Company of New York, Inc.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(UNAUDITED)


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2009		2008		2009		2008
	(Millions of Dollars)
NET INCOME	$	285	$	253	$	623	$	599
OTHER COMPREHENSIVE INCOME, NET OF TAXES
Pension plan liability adjustments, net of taxes of $1 in 2009		—		—		1		—
TOTAL OTHER COMPREHENSIVE INCOME, NET OF TAXES		—		—		1		—
COMPREHENSIVE INCOME	$	285	$	253	$	624	$	599

The accompanying notes are an integral part of these financial statements.

Consolidated Edison Company of New York, Inc.

CONSOLIDATED STATEMENT OF COMMON SHAREHOLDER’S EQUITY

(UNAUDITED)


	Common Stock			Additional Paid- In Capital		Retained Earnings			Repurchased Con Edison Stock			Capital Stock Expense			Accumulated Other Comprehensive Income/(Loss)			Total
	Shares	Amount		Additional Paid- In Capital		Retained Earnings			Repurchased Con Edison Stock			Capital Stock Expense			Accumulated Other Comprehensive Income/(Loss)			Total
	(Millions of Dollars/Except Share Data)
BALANCE AS OF DECEMBER 31, 2007	235,488,094	$	589	$	2,912	$	5,616		$	(962	)	$	(60	)	$	(9	)	$	8,086

Net income							222												222
Common stock dividend to parent							(139	)											(139	)
Capital contribution by parent					23														23
Cumulative preferred dividends							(3	)											(3	)
BALANCE AS OF MARCH 31, 2008	235,488,094	$	589	$	2,935	$	5,696		$	(962	)	$	(60	)	$	(9	)	$	8,189

Net income							124												124
Common stock dividend to parent							(145	)											(145	)
Capital contribution by parent					26														26
Cumulative preferred dividends							(3	)											(3	)
BALANCE AS OF JUNE 30, 2008	235,488,094	$	589	$	2,961	$	5,672		$	(962	)	$	(60	)	$	(9	)	$	8,191

Net income							253												253
Common stock dividend to parent							(152	)											(152	)
Capital contribution by parent					702														702
Cumulative preferred dividends							(3	)											(3	)
BALANCE AS OF SEPTEMBER 30, 2008	235,488,094	$	589	$	3,663	$	5,770		$	(962	)	$	(60	)	$	(9	)	$	8,991

BALANCE AS OF DECEMBER 31, 2008	235,488,094	$	589	$	3,664	$	5,780		$	(962	)	$	(60	)	$	(20	)	$	8,991

Net income							200												200
Common stock dividend to parent							(163	)											(163	)
Cumulative preferred dividends							(3	)											(3	)
BALANCE AS OF MARCH 31, 2009	235,488,094	$	589	$	3,664	$	5,814		$	(962	)	$	(60	)	$	(20	)	$	9,025

Net income							139												139
Common stock dividend to parent							(163	)											(163	)
Cumulative preferred dividends							(3	)											(3	)
BALANCE AS OF JUNE 30, 2009	235,488,094	$	589	$	3,664	$	5,787		$	(962	)	$	(60	)	$	(20	)	$	8,998

Net income							285												285
Common stock dividend to parent							(163	)											(163	)
Cumulative preferred dividends							(3	)											(3	)
Other comprehensive income																1			1
BALANCE AS OF SEPTEMBER 30, 2009	235,488,094	$	589	$	3,664	$	5,906		$	(962	)	$	(60	)	$	(19	)	$	9,118

The accompanying notes are an integral part of these financial statements.

Consolidated Edison Company of New York, Inc.

CONSOLIDATED STATEMENT OF CASH FLOWS

(UNAUDITED)


	For the Nine Months Ended September 30,
	2009			2008
	(Millions of Dollars)
OPERATING ACTIVITIES
Net income	$	623		$	599
PRINCIPAL NON-CASH CHARGES/(CREDITS) TO INCOME
Depreciation and amortization		554			497
Deferred income taxes		222			385
Rate case amortization and accruals		(38	)		(135	)
Net transmission and distribution reconciliation		—			(48	)
Common equity component of allowance for funds used during construction		(8	)		(5	)
Other non-cash items (net)		(46	)		36
CHANGES IN ASSETS AND LIABILITIES
Accounts receivable—customers, less allowance for uncollectibles		39			(11	)
Materials and supplies, including fuel oil and gas in storage		99			(138	)
Other receivables and other current assets		(49	)		(228	)
Prepayments		177			(694	)
Recoverable energy costs		127			201
Accounts payable		(245	)		(55	)
Pensions and retiree benefits		(22	)		(53	)
Accrued taxes		(3	)		161
Accrued interest		31			13
Deferred charges, noncurrent assets and other regulatory assets		2			(191	)
Deferred credits and other regulatory liabilities		(90	)		181
Other liabilities		(47	)		(28	)
NET CASH FLOWS FROM OPERATING ACTIVITIES		1,326			487
INVESTING ACTIVITIES
Utility construction expenditures		(1,454	)		(1,532	)
Cost of removal less salvage		(123	)		(139	)
Common equity component of allowance for funds used during construction		8			5
Loan to affiliate		113			55
NET CASH FLOWS USED IN INVESTING ACTIVITIES		(1,456	)		(1,611	)
FINANCING ACTIVITIES
Net proceeds from/(payments of) short-term debt		174			(174	)
Retirement of long-term debt		(275	)		(280	)
Issuance of long-term debt		750			1,200
Capital contribution by parent		—			751
Debt issuance costs		(5	)		(10	)
Dividend to parent		(489	)		(436	)
Preferred stock dividends		(8	)		(9	)
NET CASH FLOWS FROM FINANCING ACTIVITIES		147			1,042
CASH AND TEMPORARY CASH INVESTMENTS:
NET CHANGE FOR THE PERIOD		17			(82	)
BALANCE AT BEGINNING OF PERIOD		37			121
BALANCE AT END OF PERIOD	$	54		$	39
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid/(received) during the period for:
Interest	$	356		$	333
Income taxes	$	17		$	(82	)

The accompanying notes are an integral part of these financial statements.

NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED)

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 (Con Edison of New York). Con Edison of New York 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 Con Edison of New York consolidated financial statements, are also consolidated, along with those of Con Edison’s other utility subsidiary, Orange and Rockland Utilities, Inc. (O&R), and Con Edison’s competitive energy businesses (discussed below) in Con Edison’s consolidated financial statements. The term “Utilities” is used in these notes to refer to Con Edison of New York and O&R.

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

The separate interim consolidated financial statements of each of the Companies are unaudited but, in the opinion of their respective managements, reflect all adjustments (which include only normally recurring adjustments) necessary for a fair presentation of the results for the interim periods presented. The Companies’ separate interim consolidated financial statements should be read together with their separate audited financial statements (including the combined notes thereto) included in Item 8 of their combined Annual Report on Form 10-K for the year ended December 31, 2008 (the Form 10-K) and their separate unaudited financial statements (including the combined notes thereto) included in Part I, Item 1 of their combined Quarterly Report on Form 10-Q for the quarterly periods ended March 31, 2009 (the First Quarter Form 10-Q) and June 30, 2009 (the Second Quarter Form 10-Q). Information in the notes to the consolidated financial statements in the Form 10-K, the First Quarter Form 10-Q and the Second Quarter Form 10-Q referred to in these notes is incorporated by reference herein. The use of terms such as “see” or “refer to” shall be deemed to incorporate by reference into these notes the information to which reference is made.

The Companies have, pursuant to the accounting rules for subsequent events, evaluated events or transactions that occurred after September 30, 2009 through the filing with the Securities and Exchange Commission of this Quarterly Report on Form 10-Q for potential recognition or disclosure in the consolidated financial statements.

Certain prior period amounts have been reclassified to conform to the current period presentation. Effective June 2009, the Companies are including receivables purchased from energy supply companies

NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED) — CONTINUED

within accounts receivable—customers, and to conform to this presentation, have reclassified receivables purchased from energy supply companies that were included in other receivables at December 31, 2008 ($148 million for Con Edison; $121 million for Con Edison of New York). This reclassification more appropriately reflects the Utilities’ customer operations’ practices, policies and procedures. Results for interim periods are not necessarily indicative of results for the entire fiscal year.

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

Note A—Summary of Significant Accounting Policies

Revenues

The Utilities and Con Edison Solutions recognize revenues for electric, gas and steam service on a monthly billing cycle basis. The Utilities defer over a 12-month period net interruptible gas revenues, other than those authorized by the New York State Public Service Commission (PSC) to be retained by the Utilities, for refund to firm gas sales and transportation customers. O&R and Con Edison Solutions accrue revenues at the end of each month for estimated energy service not yet billed to customers. Prior to March 31, 2009, Con Edison of New York did not accrue revenues for estimated energy service not yet billed to customers except for certain unbilled gas revenues accrued in 1989. Effective March 31, 2009, the PSC authorized Con Edison of New York to accrue unbilled electric, gas and steam revenues. The adoption of this accounting for unbilled revenues had no effect on net income. See Note A to the financial statements in Part I, Item 1 of the First Quarter Form 10-Q. Unbilled revenues included in Con Edison’s balance sheet at September 30, 2009 and December 31, 2008 were $494 million (including $347 million for Con Edison of New York) and $131 million, respectively.

NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED) — CONTINUED

Earnings Per Common Share

Reference is made to “Earnings Per Common Share” in Note A to the financial statements included in Item 8 of the Form 10-K. For the three and nine months ended September 30, 2009 and 2008, Con Edison’s basic and diluted EPS are calculated as follows:


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
(Millions of Dollars, except per share amounts/Shares in Millions)	2009		2008		2009		2008
Income for common stock from continuing operations	$	336	$	182	$	666	$	762
Income for common stock from discontinued operations, net of tax		—		—		—		274
Net income for common stock	$	336	$	182	$	666	$	1,036
Weighted average common shares outstanding—Basic		275.1		273.2		274.5		272.7
Add: Incremental shares attributable to effect of potentially dilutive securities		0.9		0.6		0.9		0.6
Adjusted weighted average common shares outstanding—Diluted		276.0		273.8		275.4		273.3
EARNINGS PER COMMON SHARE—BASIC
Continuing operations	$	1.22	$	0.66	$	2.43	$	2.79
Discontinued operations		—		—		—		1.01
Net income for common stock	$	1.22	$	0.66	$	2.43	$	3.80
EARNINGS PER COMMON SHARE—DILUTED
Continuing operations	$	1.22	$	0.66	$	2.42	$	2.79
Discontinued operations		—		—		—		1.00
Net income for common stock	$	1.22	$	0.66	$	2.42	$	3.79

Note B—Regulatory Matters

Reference is made to “Accounting Policies” in Note A and “Rate Agreements” in Note B to the financial statements included in Item 8 of the Form 10-K and Note B to the financial statements in Part I, Item 1 of the First and Second Quarter Forms 10-Q.

Rate Agreements

Con Edison of New York—Electric

For information about Con Edison of New York’s May 2009 electric rate filing, see “Rate Agreements—Con Edison of New York—Electric” in Note B to the financial statements in Part I, Item 1 of the Second Quarter Form 10-Q. In August 2009, the PSC staff submitted testimony supporting an April 2010 electric rate increase of $477 million and, for a three-year rate plan, increases for the rate years beginning April 2011 and 2012 in amounts to be determined to reflect capital expenditures (capped at a level to be set by the PSC), pension and other postretirement benefit costs, and property taxes. In October 2009, the company and PSC staff advised the PSC’s administrative law judges for this rate proceeding that there is a high probability of producing a joint proposal that the

NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED) — CONTINUED

company and the PSC staff would sign and other parties to the proceeding would sign, support or not oppose. Consistent with PSC rules, negotiations for a joint proposal are confidential. There is no assurance that there will be a joint proposal, and any joint proposal would be subject to the approval of the PSC.

The PSC’s April 2009 order covering Con Edison of New York’s electric rates, among other things, provided for the continuation of the collection of a portion (increased, to reflect higher capital costs, from $237 million collected in the rate year ended March 2009 to $254 million for the rate year ending March 2010) of the April 2008 rate increase subject to potential refund to customers following further PSC review and completion of an investigation by the PSC staff of the $1.6 billion of capital expenditures during the April 2005 through March 2008 period covered by the 2005 electric rate agreement for transmission and distribution utility plant that were above the amounts of such expenditures reflected in rates. The portion collected would also be subject to refund in the event the PSC determined that some disallowance of costs the company has recovered is warranted to address potential impacts of alleged unlawful conduct by arrested employees and contractors (see “Investigation of Contractor Payments” in Note H). The company is unable to estimate the amount, if any, of any refund that might be required and, accordingly, has not established a regulatory liability for a refund.

O&R—Electric

In August 2009, Rockland Electric Company (RECO) filed a request with the New Jersey Board of Public Utilities (NJBPU) for a net increase in the rates it charges for electric service, effective May 15, 2010, of $9.8 million. The filing reflects a return on common equity of 11.0 percent and a common equity ratio of 53.6 percent. The filing proposes the continuation of the current provisions with respect to recovery from customers of the cost of purchased power and proposes a reconciliation of actual expenses to amounts reflected in electric rates for pension and other postretirement benefit costs.

Con Edison of New York—Gas and Steam

In June 2009, the PSC approved a Joint Proposal by Con Edison of New York, the PSC Staff and other parties under which, starting in July 2009, a portion of the company’s gas and steam revenues ($32 million and $6 million annually, respectively) would be subject to potential refund to customers in the event the PSC determined that some disallowance of costs the company has recovered is warranted to address potential impacts of alleged unlawful conduct by arrested employees and contractors (see “Investigation of Contractor Payments” in Note H). The company is unable to estimate the amount, if any, of any refund that might be required.

NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED) — CONTINUED

O&R—Gas

In October 2009, the PSC adopted the June 2009 Joint Proposal among O&R, PSC staff and other parties. As approved, the Joint Proposal establishes a gas rate plan that covers the three-year period November 1, 2009 through October 31, 2012 and provides for increases in base rates of $9 million in each of the first two years and $4.6 million in the third year, with an additional $4.3 million to be collected though a surcharge in the third rate year. For additional information about the Joint Proposal, see “Rate Agreements—O&R—Gas” in Note B to the financial statements in Part I, Item 1 of the Second Quarter Form 10-Q.

NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED) — CONTINUED

Regulatory Assets and Liabilities

Regulatory assets and liabilities at September 30, 2009 and December 31, 2008 were comprised of the following items:


	Con Edison				Con Edison of New York
(Millions of Dollars)	2009		2008		2009		2008
Regulatory assets
Unrecognized pension and other postretirement costs	$	5,317	$	5,602	$	5,071	$	5,335
Future federal income tax		1,258		1,186		1,193		1,127
Environmental remediation costs		391		378		333		315
Surcharge for New York State Assessment		193		—		177		—
Revenue taxes		116		101		113		99
Pension and other postretirement benefits deferrals		106		92		52		38
Deferred derivative losses—long-term		84		94		50		54
Net electric deferrals		82		27		82		27
Property tax reconciliation		76		46		76		46
O&R transition bond charges		56		59		—		—
World Trade Center restoration costs		41		140		41		140
Workers’ compensation		38		38		38		38
Gas rate plan deferral		27		30		27		30
Other retirement program costs		12		14		12		14
Asbestos-related costs		10		10		9		9
Unbilled gas revenue		4		44		4		44
Recoverable energy costs		—		42		—		42
Other		133		152		114		128
Regulatory assets		7,944		8,055		7,392		7,486
Deferred derivative losses—current		152		288		111		247
Recoverable energy costs—current		51		172		—		146
Total Regulatory Assets	$	8,147	$	8,515	$	7,503	$	7,879
Regulatory liabilities
Allowance for cost of removal less salvage	$	376	$	378	$	308	$	313
Refundable energy costs		141		104		84		47
Net unbilled revenue deferrals		70		—		70		—
Electric rate case deferral		38		—		38		—
Rate case amortizations		28		68		28		68
Gain on sale of First Avenue properties		17		30		17		30
Other		169		157		150		142
Regulatory liabilities		839		737		695		600
Deferred derivative gains—current		14		23		14		23
Total Regulatory Liabilities	$	853	$	760	$	709	$	623

NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED) — CONTINUED

Other Regulatory Matters

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

Note C—Long-Term Debt

Reference is made to Note C to the financial statements in Item 8 of the Form 10-K and Note C to the financial statements in Part I, Item 1 of the First and Second Quarter Forms 10-Q.

Note D—Short-Term Borrowing

Reference is made to Note D to the financial statements in Item 8 of the Form 10-K and Note D to the financial statements in Part I, Item 1 of the First and Second Quarter Forms 10-Q.

At September 30, 2009, Con Edison had $509 million of commercial paper outstanding, $427 million of which was outstanding under Con Edison of New York’s program. The weighted average interest rate was 0.3 percent for each of Con Edison and Con Edison of New York. At December 31, 2008, Con Edison had $363 million of commercial paper outstanding of which $253 million was outstanding under Con Edison of New York’s program. The weighted average interest rate was 2.4 percent and 3.2 percent for Con Edison and Con Edison of New York, respectively. At September 30, 2009 and December 31, 2008, no loans were outstanding under the Companies’ credit agreements and $231 million (including $111 million for Con Edison of New York) and $316 million (including $107 million for Con Edison of New York) of letters of credit were outstanding, respectively.

Note E—Pension Benefits

Reference is made to Note E to the financial statements in Item 8 of the Form 10-K and Note E to the financial statements in Part I, Item 1 of the First and Second Quarter Forms 10-Q.

NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED) — CONTINUED

Net Periodic Benefit Cost

The components of the Companies’ net periodic benefit costs for the three and nine months ended September 30, 2009 and 2008 were as follows:


	For the Three Months Ended September 30,
	Con Edison						Con Edison of New York
(Millions of Dollars)	2009			2008			2009			2008
Service cost—including administrative expenses	$	40		$	35		$	37		$	33
Interest cost on projected benefit obligation		131			128			123			123
Expected return on plan assets		(173	)		(172	)		(165	)		(169	)
Amortization of net actuarial loss		75			48			68			44
Amortization of prior service costs		2			2			2			1
NET PERIODIC BENEFIT COST	$	75		$	41		$	65		$	32
Amortization of regulatory asset*		1			1			1			1
TOTAL PERIODIC BENEFIT COST	$	76		$	42		$	66		$	33
Cost capitalized		(28	)		(15	)		(25	)		(13	)
Cost deferred		(4	)		(8	)		(3	)		(7	)
Cost charged to operating expenses	$	44		$	19		$	38		$	13

*	Relates to increases in Con Edison of New York’s pension obligations of $45 million from a 1999 special retirement program.


	For the Nine Months Ended September 30,
	Con Edison						Con Edison of New York
(Millions of Dollars)	2009			2008			2009			2008
Service cost—including administrative expenses	$	120		$	104		$	111		$	97
Interest cost on projected benefit obligation		393			386			369			364
Expected return on plan assets		(519	)		(518	)		(495	)		(499	)
Amortization of net actuarial loss		225			144			204			129
Amortization of prior service costs		6			6			6			5
NET PERIODIC BENEFIT COST	$	225		$	122		$	195		$	96
Amortization of regulatory asset*		3			3			3			3
TOTAL PERIODIC BENEFIT COST	$	228		$	125		$	198		$	99
Cost capitalized		(82	)		(43	)		(75	)		(36	)
Cost deferred		(40	)		(33	)		(34	)		(35	)
Cost charged to operating expenses	$	106		$	49		$	89		$	28

*	Relates to increases in Con Edison of New York’s pension obligations of $33 million from a 1993 special retirement program and $45 million from a 1999 special retirement program.

Expected Contributions

The Companies are not required under funding regulations and laws to make any contributions to the pension plan during 2009, however, the Companies’ policy is to fund their accounting cost to the extent tax deductible. During the first nine months of 2009, Con Edison and Con Edison of New York contributed $282 million and $244 million, respectively, to the pension plan. Con Edison of

NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED) — CONTINUED

New York expects to make discretionary contributions of $6 million to the non-qualified supplemental pension plan during 2009. The Companies are continuing to monitor changes to funding and tax laws that may impact future pension plan funding requirements.

Note F—Other Postretirement Benefits

Reference is made to Note F to the financial statements in Item 8 of the Form 10-K and Note F to the financial statements in Part I, Item 1 of the First and Second Quarter Forms 10-Q.

Net Periodic Benefit Cost

The components of the Companies’ net periodic postretirement benefit costs for the three and nine months ended September 30, 2009 and 2008 were as follows:


	For the Three Months Ended September 30,
	Con Edison						Con Edison of New York
(Millions of Dollars)	2009			2008			2009			2008
Service cost	$	5		$	5		$	4		$	3
Interest cost on accumulated other postretirement benefit obligation		24			24			21			21
Expected return on plan assets		(21	)		(22	)		(20	)		(18	)
Amortization of net actuarial loss		18			17			16			15
Amortization of prior service cost		(3	)		(3	)		(3	)		(4	)
Amortization of transition obligation		1			1			1			1
NET PERIODIC POSTRETIREMENT BENEFIT COST	$	24		$	22		$	19		$	18
Cost capitalized		(9	)		(8	)		(7	)		(7	)
Cost deferred		1			—			—			(1	)
Cost charged to operating expenses	$	16		$	14		$	12		$	10


	For the Nine Months Ended September 30,
	Con Edison						Con Edison of New York
(Millions of Dollars)	2009			2008			2009			2008
Service cost	$	15		$	15		$	12		$	11
Interest cost on accumulated other postretirement benefit obligation		72			71			63			63
Expected return on plan assets		(63	)		(65	)		(60	)		(57	)
Amortization of net actuarial loss		54			51			48			44
Amortization of prior service cost		(9	)		(9	)		(9	)		(11	)
Amortization of transition obligation		3			3			3			3
NET PERIODIC POSTRETIREMENT BENEFIT COST	$	72		$	66		$	57		$	53
Cost capitalized		(27	)		(23	)		(22	)		(19	)
Cost deferred		—			(11	)		(2	)		(10	)
Cost charged to operating expenses	$	45		$	32		$	33		$	24

NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED) — CONTINUED

Note G—Environmental Matters

Superfund Sites

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

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

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

The accrued liabilities and regulatory assets related to Superfund Sites at September 30, 2009 and December 31, 2008 were as follows:


	Con Edison				Con Edison of New York
(Millions of Dollars)	2009		2008		2009		2008
Accrued Liabilities:
Manufactured gas plant sites	$	177	$	207	$	126	$	155
Other Superfund Sites		48		43		46		41
Total	$	225	$	250	$	172	$	196
Regulatory assets	$	391	$	378	$	333	$	315

NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED) — CONTINUED

Most of the accrued Superfund Site liability relates to sites that have been investigated, in whole or in part. As investigations progress on these and other sites, the Utilities expect that additional liability will be accrued, the amount of which is not presently determinable but may be material. Under their current rate agreements, the Utilities are permitted to recover or defer as regulatory assets (for subsequent recovery through rates) certain site investigation and remediation costs.

Environmental remediation costs incurred related to Superfund Sites during the three and nine months ended September 30, 2009 and 2008 were as follows:


	For the Three Months Ended September 30,
	Con Edison				Con Edison of New York
(Millions of Dollars)	2009		2008		2009		2008
Remediation costs incurred	$	20	$	24	$	20	$	24
Insurance recoveries received*	$	3		—	$	3		—

*	Reduced amount deferred for recovery from customers.


	For the Nine Months Ended September 30,
	Con Edison				Con Edison of New York
(Millions of Dollars)	2009		2008		2009		2008
Remediation costs incurred	$	60	$	77	$	59	$	76
Insurance recoveries received*	$	3		—	$	3		—

*	Reduced amount deferred for recovery from customers.

In 2006, Con Edison of New York estimated that for its manufactured gas plant sites, its aggregate undiscounted potential liability for the investigation and remediation of coal tar and/or other manufactured gas plant-related environmental contaminants could range up to $1.1 billion. In 2007, O&R estimated that for its manufactured gas plant sites, each of which has been investigated, the aggregate undiscounted potential liability for the remediation of such contaminants could range up to $115 million. These estimates were based on the assumption that there is contamination at the sites that have not yet been investigated and additional assumptions about these and the other sites regarding the extent of contamination and the type and extent of remediation that may be required. Actual experience may be materially different.

Asbestos Proceedings

Suits have been brought in New York State and federal courts against the Utilities and many other defendants, wherein a large number of plaintiffs sought large amounts of compensatory and punitive damages for deaths and injuries allegedly caused by exposure to asbestos at various premises of the Utilities. The suits that have been resolved, which are many, have been resolved without any payment

NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED) — CONTINUED

by the Utilities, or for amounts that were not, in the aggregate, material to them. The amounts specified in all the remaining thousands of suits total billions of dollars; however, the Utilities believe that these amounts are greatly exaggerated, based on the disposition of previous claims. In 2008, Con Edison of New York estimated that its aggregate undiscounted potential liability for these suits and additional suits that may be brought over the next 15 years is $9 million. The estimate was based upon a combination of modeling, historical data analysis and risk factor assessment. Actual experience may be materially different. In addition, certain current and former employees have claimed or are claiming workers’ compensation benefits based on alleged disability from exposure to asbestos. Under its current rate agreements, Con Edison of New York is permitted to defer as regulatory assets (for subsequent recovery through rates) costs incurred for its asbestos lawsuits and workers’ compensation claims. The accrued liability for asbestos suits and workers’ compensation proceedings (including those related to asbestos exposure) and the amounts deferred as regulatory assets for the Companies at September 30, 2009 and December 31, 2008 were as follows:


	Con Edison				Con Edison of New York
(Millions of Dollars)	2009		2008		2009		2008
Accrued liability—asbestos suits	$	10	$	10	$	9	$	9
Regulatory assets—asbestos suits	$	10	$	10	$	9	$	9
Accrued liability—workers’ compensation	$	114	$	114	$	108	$	109
Regulatory assets—workers’ compensation	$	38	$	38	$	38	$	38

Note H—Other Material Contingencies

Manhattan Steam Main Rupture

In July 2007, a Con Edison of New York steam main located in midtown Manhattan ruptured. It has been reported that one person died and others were injured as a result of the incident. Several buildings in the area were damaged. Debris from the incident included dirt and mud containing asbestos. The response to the incident required the closing of several buildings and streets for various periods. Approximately 100 suits are pending against the company seeking generally unspecified compensatory and, in some cases, punitive damages, for personal injury, property damage and business interruption. The company has not accrued a liability for the suits. The company has notified its insurers of the incident and believes that the policies in force at the time of the incident will cover most of the company’s costs, which the company is unable to estimate, but which could be substantial, to satisfy its liability to others in connection with the incident.

Investigation of Contractor Payments

In January 2009, Con Edison of New York commenced an internal investigation relating to the arrests of certain employees and retired employees (most of whom have since been indicted or pleaded guilty)

NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED) — CONTINUED

for accepting kickbacks from contractors that performed construction work for the company. The company has retained a law firm, which has retained an accounting firm, to assist in the company’s investigation. The company is providing information to governmental authorities, which consider the company to be a victim of unlawful conduct, in connection with their investigation of the arrested employees and contractors. The company has terminated its employment of the arrested employees and its contracts with the contractors. In February 2009, the PSC commenced a proceeding that, among other things, will examine the prudence of certain of the company’s expenditures relating to the arrests and consider whether additional expenditures should also be examined (see Note B). The company, based upon its evaluation of its internal controls for 2008 and previous years, believes that the controls were effective to provide reasonable assurance that its financial statements have been fairly presented, in all material respects, in conformity with generally accepted accounting principles. Because the company’s investigation is ongoing, the company is unable to predict the impact of any of the employees’ unlawful conduct on the company’s internal controls, business, results of operations or financial position.

Permit Non-Compliance and Pollution Discharges

In March 2009, the New York State Department of Environmental Conservation (DEC) issued a proposed Administrative Order on Consent to Con Edison of New York with respect to non-compliance with certain laws, regulations and permit conditions and discharges of pollutants at the company’s steam generating facilities. The proposed order effectively institutes a civil enforcement proceeding against the company. In the proposed order, the DEC is seeking, among other things, the company’s agreement to pay a penalty in an amount the DEC has not yet specified, retain an independent consultant to conduct a comprehensive audit of the company’s generating facilities to determine compliance with federal and New York State environmental laws and regulations and recommend best practices, remove all equipment containing polychlorinated biphenyls from the company’s steam and electric facilities, remediate polychlorinated biphenyl contamination, install certain wastewater treatment facilities, and comply with additional sampling, monitoring, and training requirements. The company will seek to resolve this proceeding through a negotiated settlement with the DEC. It is unable to predict the impact of the proceeding on the company’s operations or the amount of the penalty and the additional costs, which could be substantial, to comply with the requirements resulting from this proceeding.

Lease In/Lease Out Transactions

In each of 1997 and 1999, Con Edison Development entered into a transaction in which it leased property and then immediately subleased it back to the lessor (termed “Lease In/Lease Out,” or LILO transactions). The transactions respectively involve electric generating and gas distribution facilities in

NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED) — CONTINUED

the Netherlands, with a total investment of $259 million. The transactions were financed with $93 million of equity and $166 million of non-recourse, long-term debt secured by the underlying assets. In accordance with the accounting rules for leases, Con Edison is accounting for the two LILO transactions as leveraged leases. Accordingly, the company’s investment in these leases, net of non-recourse debt, is carried as a single amount in Con Edison’s consolidated balance sheet and income is recognized pursuant to a method that incorporates a level rate of return for those years when net investment in the lease is positive, based upon the after-tax cash flows projected at the inception of the leveraged leases. The company’s net investment in these leveraged leases was $(20) million at September 30, 2009 and $(8) million at December 31, 2008 and is comprised of a $235 million gross investment less $255 million of deferred tax liabilities at September 30, 2009 and $235 million gross investment less $243 million of deferred tax liabilities at December 31, 2008.

On audit of Con Edison’s tax return for 1997, the Internal Revenue Service (IRS) disallowed the tax losses in connection with the 1997 LILO transaction. In December 2005, Con Edison paid a $0.3 million income tax deficiency asserted by the IRS for the tax year 1997 with respect to the 1997 LILO transaction. In April 2006, the company paid interest of $0.2 million associated with the deficiency and commenced an action in the United States Court of Federal Claims, entitled Consolidated Edison Company of New York, Inc. v. United States, to obtain a refund of this tax payment and interest. A trial was completed in November 2007. In October 2009, the court issued a decision in favor of the company concluding that the 1997 LILO transaction was, in substance, a true lease that possessed economic substance, the loans relating to the lease constituted bona fide indebtedness, and the deductions for the 1997 LILO transactions claimed by the company in its 1997 federal income tax return are allowable. The IRS is entitled to appeal the decision but has not indicated whether or not it will.

In connection with its audit of Con Edison’s federal income tax returns for 1998 through 2007, the IRS disallowed $416 million of net tax deductions taken with respect to both of the LILO transactions for the tax years. Con Edison has appealed these audit level disallowances, except for 2002, 2003 and 2004 (which it plans to appeal), with the Appeals Office of the IRS. In connection with its audit of Con Edison’s federal income tax return for 2008, the IRS indicated that it intends to disallow $42 million of net tax deductions taken with respect to both of the LILO transactions. If and when this audit level disallowance becomes appealable, Con Edison intends to file an appeal of the disallowance with the Appeals Office of the IRS.

Con Edison believes that its LILO transactions have been correctly reported, and has not recorded any reserve with respect to the disallowance of tax losses, or related interest, in connection with its LILO transactions. Con Edison’s estimated tax savings, reflected in its financial statements, from the two

NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED) — CONTINUED

LILO transactions through September 30, 2009, in the aggregate, was $205 million. If Con Edison were required to repay all or a portion of these amounts, it would also be required to pay interest of up to $55 million net of tax at September 30, 2009.

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

Guarantees

Con Edison and its subsidiaries enter into various agreements providing financial or performance assurance primarily to third parties on behalf of their subsidiaries. Maximum amounts guaranteed by Con Edison totaled $1.1 billion and $1.6 billion at September 30, 2009 and December 31, 2008, respectively.

A summary, by type and term, of Con Edison’s total guarantees at September 30, 2009 is as follows:


Guarantee Type	0 – 3 years		4 – 10 years		> 10 years		Total
	(Millions of Dollars)
Commodity transactions	$	681	$	43	$	189	$	913
Affordable housing program		9		—		—		9
Intra-company guarantees		30		—		1		31
Other guarantees		140		27		—		167
TOTAL	$	860	$	70	$	190	$	1,120

For a description of guarantee types, see Note H to the financial statements in Item 8 of the Form 10-K.

Note I—Income Tax

Reference is made to Note L to the financial statements in Item 8 of the Form 10-K.

In June 2009, Con Edison entered into partial agreements with the IRS to resolve its outstanding issues with the Companies’ federal income tax returns for 1998 through 2004, other than the tax treatment of Con Edison Development’s LILO transactions (see “Lease in/Lease Out Transactions” in Note H). The partial agreements incorporate the July 2008 closing agreement between Con Edison and the IRS covering the Companies’ use of the “simplified service cost method” (SSCM) to deduct construction-related costs in 2002, 2003 and 2004. The partial agreements resulted in tax deficiencies

NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED) — CONTINUED

of $78 million for tax years 1998, 2000 and 2002, and tax refunds of $39 million for 1999, 2001 and 2003. The partial agreement for 2004 resulted in an increased net operating loss deduction of $19 million, which is being carried forward to the Companies’ 2005 federal income tax return.

In August 2009, the IRS billed the Companies $109 million ($78 million for the tax liabilities, as provided in the partial agreements, and $31 million for related interest) for 1998, 2000 and 2002. In September 2009, the Companies paid the bills by applying $109 million of a $160 million deposit the Companies made with the IRS in June 2007.

At September 30, 2009, the Companies’ estimated refunds receivable from the IRS for 1999, 2001 and 2003 ($39 million for Con Edison and Con Edison of New York) and the amount of the Companies’ remaining funds on deposit with the IRS ($51 million for Con Edison and $47 million for Con Edison of New York) were classified as current assets on their respective consolidated balance sheets.

At September 30, 2009, the Companies’ estimated liabilities for uncertain tax positions ($99 million for Con Edison and $89 million for Con Edison of New York) were classified as current liabilities on their respective consolidated balance sheets. The Companies reasonably expect to resolve these uncertain tax positions with the IRS in the next 12 months.

Note J—Financial Information by Business Segment

Reference is made to Note N to the financial statements in Item 8 of the Form 10-K.

The financial data for the business segments are as follows:


	For the Three Months Ended September 30,
	Operating revenues					Inter-segment revenues						Depreciation and amortization				Operating income
(Millions of Dollars)	2009			2008		2009			2008			2009		2008		2009			2008
Con Edison of New York
Electric	$	2,395		$	2,670	$	3		$	3		$	149	$	133	$	433		$	369
Gas		183			242		1			2			24		23		(11	)		8
Steam		77			111		18			18			15		16		(5	)		(3	)
Consolidation adjustments		—			—		(22	)		(23	)		—		—		—			—
Total Con Edison of New York	$	2,655		$	3,023	$	—		$	—		$	188	$	172	$	417		$	374
O&R
Electric	$	209		$	252	$	—		$	—		$	7	$	7	$	26		$	26
Gas		26			31		—			—			3		3		(2	)		(2	)
Total O&R	$	235		$	283	$	—		$	—		$	10	$	10	$	24		$	24
Competitive energy businesses	$	610		$	551	$	2		$	12		$	2	$	1	$	43		$	(87	)
Other*		(11	)		1		(2	)		(12	)		—		—		—			—
Total Con Edison	$	3,489		$	3,858	$	—		$	—		$	200	$	183	$	484		$	311

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

NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED) — CONTINUED


	For the Nine Months Ended September 30,
	Operating revenues					Inter-segment revenues						Depreciation and amortization				Operating income
(Millions of Dollars)	2009			2008		2009			2008			2009		2008		2009			2008
Con Edison of New York
Electric	$	5,865		$	6,162	$	9		$	9		$	437	$	383	$	787		$	735
Gas		1,259			1,366		4			4			73		67		158			153
Steam		521			529		54			56			44		47		70			57
Consolidation adjustments		—			—		(67	)		(69	)		—		—		—			—
Total Con Edison of New York	$	7,645		$	8,057	$	—		$	—		$	554	$	497	$	1,015		$	945
O&R
Electric	$	499		$	590	$	—		$	—		$	22	$	21	$	40		$	42
Gas		171			179		—			—			9		9		13			12
Total O&R	$	670		$	769	$	—		$	—		$	31	$	30	$	53		$	54
Competitive energy businesses*	$	1,477		$	1,749	$	(1	)	$	16		$	4	$	4	$	31		$	110
Other**		(34	)		9		1			(16	)		—		—		(1	)		—
Total Con Edison	$	9,758		$	10,584	$	—		$	—		$	589	$	531	$	1,098		$	1,109

*	Includes the gain on the sale of Con Edison Development’s generation projects within continuing operations.

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

Note K—Derivative Instruments and Hedging Activities

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

The accounting rules for derivatives and hedging were expanded in 2009 to require the Companies to provide users of financial statements with enhanced disclosures about (a) how and why an entity uses derivative instruments, (b) how derivative instruments and related hedged items are accounted for under the accounting rules, and (c) how derivative instruments and related hedged items affect an entity’s financial position, financial performance, and cash flows. The accounting rules require qualitative disclosures about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts of and gains and losses on derivative instruments and disclosures about credit-risk-related contingent features in derivative agreements.

NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED) — CONTINUED

Energy Price Hedging

Con Edison’s subsidiaries hedge market price fluctuations associated with physical purchases and sales of electricity, natural gas, and steam by using derivative instruments including futures, forwards, basis swaps, options, transmission congestion contracts and financial transmission rights contracts. The fair values of these derivative instruments at September 30, 2009 and December 31, 2008 were as follows:


	Con Edison						Con Edison of New York
(Millions of Dollars)	2009			2008			2009			2008
Fair value of net derivative assets/(liabilities)—gross	$	(256	)	$	(428	)	$	(89	)	$	(259	)
Impact of netting of cash collateral		229			322			113			224
Fair value of net derivative assets/(liabilities)—net	$	(27	)	$	(106	)	$	24		$	(35	)

Credit Exposure

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

At September 30, 2009, Con Edison and Con Edison of New York had $242 million and $43 million of credit exposure in connection with energy supply and hedging activities, net of collateral, respectively. Con Edison’s net credit exposure consisted of $156 million with investment-grade counterparties and $86 million with commodity exchange brokers or independent system operators. Con Edison of New York’s net credit exposure consisted of $3 million with investment-grade counterparties and $40 million with commodity exchange brokers.

Economic Hedges

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

NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED) — CONTINUED

The fair values of the Companies’ commodity derivatives at September 30, 2009 were:


Fair Value of Commodity Derivatives^(a)
(Millions of Dollars)	Balance Sheet Location	Con Edison			Con Edison of New York
Asset Derivatives
Current	Fair value of derivative assets	$	313		$	51
Long term	Other deferred charges and non-current assets		137			41
Total asset derivatives		$	450		$	92
Impact of netting			(242	)		(16	)
Net asset derivatives		$	208		$	76
Liability Derivatives
Current	Fair value of derivative liabilities	$	497		$	112
Long term	Fair value of derivative liabilities		209			69
Total liability derivatives		$	706		$	181
Impact of netting			(471	)		(129	)
Net liability derivatives		$	235		$	52

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

The Utilities generally recover all of their prudently incurred fuel, purchased power and gas cost, including hedging gains and losses, in accordance with rate provisions approved by the applicable state utility commissions. See “Recoverable Energy Costs” in Note A to the financial statements in Item 8 of the Form 10-K. In accordance with the accounting rules for regulated operations, the Utilities record a regulatory asset or liability to defer recognition of unrealized gains and losses on their electric and gas derivatives. As gains and losses are realized in future periods, they will be recognized as purchased power, gas and fuel costs in the Companies’ consolidated income statements. Con Edison’s competitive energy businesses record realized and unrealized gains and losses on their derivative contracts in earnings in the reporting period in which they occur.

NOTES TO THE FINANCIAL STATEMENTS (UNAUDITED) — CONTINUED

The following table presents the changes in the fair values of commodity derivatives that have been deferred or recognized in earnings for the three and nine months ended September 30, 2009:


Realized and Unrealized Gains/(Losses) on Commodity Derivatives^(a) Deferred or Recognized in Income for the Three Months Ended September 30, 2009
(Millions of Dollars)	Balance Sheet Location	Con Edison		Con Edison of New York
Pre-tax gains/(losses) deferred in accordance with accounting rules for regulated operations:
Current	Deferred derivative gains	$	4	$	4
Long term	Regulatory liabilities		2		—
Total deferred gains

Commission
File Number

Exact name of registrant as specified in its charter

and principal office address and telephone number

State of
Incorporation

I.R.S. Employer
ID. Number

Consolidated Edison, Inc.

4 Irving Place, New York, New York 10003

(212) 460-4600

Consolidated Edison Company of New York, Inc.

4 Irving Place, New York, New York 10003

(212) 460-4600