Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Dec. 31, 2014 | Jan. 30, 2015 | Jun. 30, 2014 |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | ED | ||
Entity Registrant Name | CONSOLIDATED EDISON INC | ||
Entity Central Index Key | 1047862 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 292,888,812 | ||
Entity Public Float | $16.90 | ||
CECONY [Member] | |||
Document Information [Line Items] | |||
Entity Registrant Name | CONSOLIDATED EDISON CO OF NEW YORK INC | ||
Entity Central Index Key | 23632 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer |
Consolidated_Income_Statement
Consolidated Income Statement (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
OPERATING REVENUES | |||
Electric | $9,114 | $8,756 | $8,765 |
Gas | 1,933 | 1,821 | 1,618 |
Steam | 628 | 683 | 596 |
Non-utility | 1,244 | 1,094 | 1,209 |
TOTAL OPERATING REVENUES | 12,919 | 12,354 | 12,188 |
OPERATING EXPENSES | |||
Purchased power | 3,417 | 3,099 | 3,116 |
Fuel | 285 | 320 | 310 |
Gas purchased for resale | 811 | 635 | 461 |
Other operations and maintenance | 3,294 | 3,137 | 3,182 |
Depreciation and amortization | 1,071 | 1,024 | 955 |
Taxes, other than income taxes | 1,877 | 1,895 | 1,825 |
TOTAL OPERATING EXPENSES | 10,755 | 10,110 | 9,849 |
Gain on sale of solar electric production projects | 45 | ||
OPERATING INCOME | 2,209 | 2,244 | 2,339 |
OTHER INCOME (DEDUCTIONS) | |||
Investment and other income | 54 | 24 | 18 |
Allowance for equity funds used during construction | 2 | 4 | 4 |
Other deductions | -14 | -15 | -16 |
TOTAL OTHER INCOME (DEDUCTIONS) | 42 | 13 | 6 |
INCOME BEFORE INTEREST AND INCOME TAX EXPENSE | 2,251 | 2,257 | 2,345 |
INTEREST EXPENSE | |||
Interest on long-term debt | 587 | 578 | 586 |
Other interest | 5 | 143 | 20 |
Allowance for borrowed funds used during construction | -1 | -2 | -2 |
NET INTEREST EXPENSE | 591 | 719 | 604 |
INCOME BEFORE INCOME TAX EXPENSE | 1,660 | 1,538 | 1,741 |
INCOME TAX EXPENSE | 568 | 476 | 600 |
NET INCOME | 1,092 | 1,062 | 1,141 |
Preferred stock dividend requirements | -3 | ||
NET INCOME FOR COMMON STOCK | 1,092 | 1,062 | 1,138 |
Net income for common stock per common share - basic | $3.73 | $3.62 | $3.88 |
Net income for common stock per common share - diluted | $3.71 | $3.61 | $3.86 |
DIVIDENDS DECLARED PER SHARE OF COMMON STOCK | $2.52 | $2.46 | $2.42 |
AVERAGE NUMBER OF SHARES OUTSTANDING - BASIC (IN MILLIONS) | 292.9 | 292.9 | 292.9 |
AVERAGE NUMBER OF SHARES OUTSTANDING - DILUTED (IN MILLIONS) | 294 | 294.4 | 294.5 |
CECONY [Member] | |||
OPERATING REVENUES | |||
Electric | 8,437 | 8,131 | 8,176 |
Gas | 1,721 | 1,616 | 1,415 |
Steam | 628 | 683 | 596 |
TOTAL OPERATING REVENUES | 10,786 | 10,430 | 10,187 |
OPERATING EXPENSES | |||
Purchased power | 2,091 | 2,021 | 1,968 |
Fuel | 285 | 320 | 310 |
Gas purchased for resale | 609 | 532 | 387 |
Other operations and maintenance | 2,873 | 2,735 | 2,788 |
Depreciation and amortization | 991 | 946 | 894 |
Taxes, other than income taxes | 1,798 | 1,816 | 1,747 |
TOTAL OPERATING EXPENSES | 8,647 | 8,370 | 8,094 |
OPERATING INCOME | 2,139 | 2,060 | 2,093 |
OTHER INCOME (DEDUCTIONS) | |||
Investment and other income | 22 | 11 | 9 |
Allowance for equity funds used during construction | 1 | 2 | 2 |
Other deductions | -12 | -12 | -13 |
TOTAL OTHER INCOME (DEDUCTIONS) | 11 | 1 | -2 |
INCOME BEFORE INTEREST AND INCOME TAX EXPENSE | 2,150 | 2,061 | 2,091 |
INTEREST EXPENSE | |||
Interest on long-term debt | 523 | 511 | 525 |
Other interest | 15 | 11 | 22 |
Allowance for borrowed funds used during construction | -1 | -1 | -2 |
NET INTEREST EXPENSE | 537 | 521 | 545 |
INCOME BEFORE INCOME TAX EXPENSE | 1,613 | 1,540 | 1,546 |
INCOME TAX EXPENSE | 555 | 520 | 529 |
NET INCOME | 1,058 | 1,020 | 1,017 |
Preferred stock dividend requirements | -3 | ||
NET INCOME FOR COMMON STOCK | $1,058 | $1,020 | $1,014 |
Consolidated_Statement_of_Comp
Consolidated Statement of Comprehensive Income (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
NET INCOME | $1,092 | $1,062 | $1,141 |
OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAXES | |||
Pension and other postretirement benefit plan liability adjustments, net of taxes | -20 | 28 | 5 |
TOTAL OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAXES | -20 | 28 | 5 |
COMPREHENSIVE INCOME | 1,072 | 1,090 | 1,146 |
Cumulative preferred dividends | -3 | ||
COMPREHENSIVE INCOME FOR COMMON STOCK | 1,072 | 1,090 | 1,143 |
CECONY [Member] | |||
NET INCOME | 1,058 | 1,020 | 1,017 |
OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAXES | |||
Pension and other postretirement benefit plan liability adjustments, net of taxes | -5 | 3 | -1 |
TOTAL OTHER COMPREHENSIVE INCOME/(LOSS), NET OF TAXES | -5 | 3 | -1 |
COMPREHENSIVE INCOME | 1,053 | 1,023 | 1,016 |
Cumulative preferred dividends | ($3) |
Consolidated_Statement_of_Cash
Consolidated Statement of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
OPERATING ACTIVITIES | |||
NET INCOME | $1,092 | $1,062 | $1,141 |
PRINCIPAL NON-CASH CHARGES/(CREDITS) TO INCOME | |||
Depreciation and amortization | 1,071 | 1,024 | 955 |
Deferred income taxes | 518 | 40 | 584 |
Rate case amortization and accruals | 102 | 10 | 42 |
Common equity component of allowance for funds used during construction | -2 | -4 | -4 |
Net derivative (gains)/losses | 128 | -74 | -68 |
Pre-tax gains on termination of LILO transactions | -95 | ||
Pre-tax gain on sale of solar electric production projects | -45 | ||
Other non-cash items (net) | -35 | 91 | 52 |
CHANGES IN ASSETS AND LIABILITIES | |||
Accounts receivable - customers, less allowance for uncollectibles | 44 | -29 | -99 |
Special deposits | 312 | -257 | -13 |
Materials and supplies, including fuel oil and gas in storage | -10 | -33 | 26 |
Other receivables and other current assets | 4 | 34 | 40 |
Income taxes receivable | -224 | ||
Prepayments | -27 | 23 | -14 |
Accounts payable | -9 | -118 | 111 |
Pensions and retiree benefits obligations (net) | 822 | 829 | 903 |
Pensions and retiree benefits contributions | -584 | -887 | -870 |
Accrued taxes | -404 | 314 | -26 |
Accrued interest | -113 | 96 | -7 |
Superfund and environmental remediation costs (net) | 28 | -4 | 7 |
Deferred charges, noncurrent assets and other regulatory assets | -339 | -141 | -337 |
Deferred credits and other regulatory liabilities | 495 | 627 | 92 |
Other current and noncurrent liabilities | 7 | 44 | 84 |
Net Cash Flows from Operating Activities | 2,831 | 2,552 | 2,599 |
INVESTING ACTIVITIES | |||
Utility construction expenditures | -2,239 | -2,339 | -1,917 |
Cost of removal less salvage | -216 | -217 | -175 |
Non-utility construction expenditures | -180 | -199 | -152 |
Investments in renewable electric production projects | -283 | -175 | -309 |
Proceeds from grants related to solar electric production projects | 36 | 93 | 30 |
Proceeds from sale of solar electric production projects | 108 | ||
Restricted cash | 15 | -22 | |
Proceeds from the termination of LILO transactions | 200 | ||
NET CASH FLOWS USED IN INVESTING ACTIVITIES | -2,759 | -2,659 | -2,523 |
FINANCING ACTIVITIES | |||
Net issuance/(payment) of short-term debt | -651 | 912 | 539 |
Issuance of long-term debt | 1,850 | 919 | 400 |
Retirement of long-term debt | -480 | -709 | -305 |
Debt issuance costs | -17 | -6 | -4 |
Common stock dividends | -739 | -721 | -709 |
Issuance of common shares for stock plans, net of repurchases | -10 | -8 | -9 |
Preferred stock dividends | -3 | ||
Preferred stock redemption | -239 | ||
NET CASH FLOWS (USED IN)/FROM FINANCING ACTIVITIES | -47 | 387 | -330 |
CASH AND TEMPORARY CASH INVESTMENTS: | |||
NET CHANGE FOR THE PERIOD | 25 | 280 | -254 |
BALANCE AT BEGINNING OF PERIOD | 674 | 394 | 648 |
BALANCE AT END OF PERIOD | 699 | 674 | 394 |
Cash paid during the period for: | |||
Interest | 561 | 574 | 571 |
Income taxes | 633 | 69 | 46 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH INFORMATION | |||
Construction expenditures in accounts payable | 179 | 174 | 254 |
CECONY [Member] | |||
OPERATING ACTIVITIES | |||
NET INCOME | 1,058 | 1,020 | 1,017 |
PRINCIPAL NON-CASH CHARGES/(CREDITS) TO INCOME | |||
Depreciation and amortization | 991 | 946 | 894 |
Deferred income taxes | 331 | 222 | 365 |
Rate case amortization and accruals | 102 | 10 | 42 |
Common equity component of allowance for funds used during construction | -1 | -2 | -2 |
Other non-cash items (net) | -33 | -80 | 14 |
CHANGES IN ASSETS AND LIABILITIES | |||
Accounts receivable - customers, less allowance for uncollectibles | 59 | -15 | -131 |
Materials and supplies, including fuel oil and gas in storage | -12 | -15 | 23 |
Other receivables and other current assets | 35 | -88 | -40 |
Prepayments | -24 | -21 | 4 |
Accounts payable | -79 | -58 | 102 |
Pensions and retiree benefits obligations (net) | 742 | 803 | 837 |
Pensions and retiree benefits contributions | -544 | -830 | -804 |
Accrued taxes | -403 | 207 | 94 |
Accrued interest | -22 | 6 | |
Superfund and environmental remediation costs (net) | 32 | -4 | 9 |
Deferred charges, noncurrent assets and other regulatory assets | -334 | -148 | -239 |
Deferred credits and other regulatory liabilities | 475 | 666 | 100 |
Other current and noncurrent liabilities | 57 | 24 | 61 |
Net Cash Flows from Operating Activities | 2,430 | 2,643 | 2,346 |
INVESTING ACTIVITIES | |||
Utility construction expenditures | -2,094 | -2,207 | -1,788 |
Cost of removal less salvage | -210 | -210 | -170 |
NET CASH FLOWS USED IN INVESTING ACTIVITIES | -2,304 | -2,417 | -1,958 |
FINANCING ACTIVITIES | |||
Net issuance/(payment) of short-term debt | -760 | 789 | 421 |
Issuance of long-term debt | 1,850 | 700 | 400 |
Retirement of long-term debt | -475 | -700 | -300 |
Debt issuance costs | -17 | -7 | -4 |
Dividend to parent | -712 | -728 | -682 |
Preferred stock dividends | -3 | ||
Preferred stock redemption | -239 | ||
NET CASH FLOWS (USED IN)/FROM FINANCING ACTIVITIES | -114 | 54 | -407 |
CASH AND TEMPORARY CASH INVESTMENTS: | |||
NET CHANGE FOR THE PERIOD | 12 | 280 | -19 |
BALANCE AT BEGINNING OF PERIOD | 633 | 353 | 372 |
BALANCE AT END OF PERIOD | 645 | 633 | 353 |
Cash paid during the period for: | |||
Interest | 504 | 500 | 513 |
Income taxes | 748 | 163 | 62 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH INFORMATION | |||
Construction expenditures in accounts payable | $151 | $116 | $201 |
Consolidated_Balance_Sheet
Consolidated Balance Sheet (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
CURRENT ASSETS | ||||
Cash and temporary cash investments | $699 | $674 | ||
Special deposits | 8 | 327 | ||
Accounts receivable - customers, less allowance for uncollectible accounts | 1,201 | 1,251 | ||
Other receivables, less allowance for uncollectible accounts | 133 | 240 | ||
Income taxes receivable | 224 | |||
Accrued unbilled revenue | 500 | 514 | ||
Fuel oil, gas in storage, materials and supplies, at average cost | 372 | 363 | ||
Prepayments | 163 | 136 | ||
Regulatory assets | 148 | 29 | ||
Deferred tax assets - current | 128 | 122 | ||
Other current assets | 278 | 235 | ||
TOTAL CURRENT ASSETS | 3,854 | 3,891 | ||
INVESTMENTS | 816 | 461 | ||
UTILITY PLANT AT ORIGINAL COST | ||||
General | 2,465 | 2,336 | ||
TOTAL | 35,909 | 33,474 | ||
Less: Accumulated depreciation | 7,614 | 7,072 | ||
Net | 28,295 | 26,402 | ||
Construction work in progress | 1,031 | 1,393 | ||
NET UTILITY PLANT | 29,326 | 27,795 | ||
NON-UTILITY PLANT | ||||
Non-utility property, less accumulated depreciation | 388 | 605 | ||
Construction work in progress | 113 | 36 | ||
NET PLANT | 29,827 | 28,436 | ||
OTHER NONCURRENT ASSETS | ||||
Goodwill | 429 | 429 | ||
Intangible assets, less accumulated amortization of $4 in 2014 and 2013 | 3 | 4 | ||
Regulatory assets | 9,156 | 7,201 | ||
Other deferred charges and noncurrent assets | 223 | 225 | ||
TOTAL OTHER NONCURRENT ASSETS | 9,811 | 7,859 | ||
TOTAL ASSETS | 44,308 | 40,647 | ||
CURRENT LIABILITIES | ||||
Long-term debt due within one year | 560 | 485 | ||
Notes payable | 800 | 1,451 | ||
Accounts payable | 1,019 | 1,017 | ||
Customer deposits | 344 | 321 | ||
Accrued taxes | 72 | 476 | ||
Accrued interest | 132 | 249 | ||
Accrued wages | 95 | 92 | ||
Fair value of derivative liabilities | 64 | 13 | ||
Regulatory liabilities | 187 | 148 | ||
Other current liabilities | 508 | 478 | ||
TOTAL CURRENT LIABILITIES | 3,781 | 4,730 | ||
NONCURRENT LIABILITIES | ||||
Provision for injuries and damages | 182 | 195 | ||
Pensions and retiree benefits | 3,914 | 1,727 | ||
Superfund and other environmental costs | 764 | 749 | ||
Asset retirement obligations | 188 | 143 | ||
Fair value of derivative liabilities | 13 | 5 | ||
Deferred income taxes and investment tax credits | 9,076 | 8,466 | ||
Regulatory liabilities | 1,993 | 1,728 | ||
Other deferred credits and noncurrent liabilities | 181 | 170 | ||
TOTAL NONCURRENT LIABILITIES | 16,311 | 13,183 | ||
LONG-TERM DEBT | 11,631 | 10,489 | ||
EQUITY | ||||
COMMON SHAREHOLDER'S EQUITY (See Statement of Shareholder's Equity) | 12,576 | 12,245 | ||
Noncontrolling interest | 9 | |||
TOTAL EQUITY (See Statement of Equity) | 12,585 | 12,245 | ||
TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY | 44,308 | 40,647 | ||
CECONY [Member] | ||||
CURRENT ASSETS | ||||
Cash and temporary cash investments | 645 | 633 | ||
Special deposits | 2 | 86 | ||
Accounts receivable - customers, less allowance for uncollectible accounts | 1,064 | 1,123 | ||
Other receivables, less allowance for uncollectible accounts | 71 | 127 | ||
Accrued unbilled revenue | 384 | 405 | ||
Accounts receivable from affiliated companies | 132 | 119 | ||
Fuel oil, gas in storage, materials and supplies, at average cost | 312 | 300 | ||
Prepayments | 126 | 102 | ||
Regulatory assets | 132 | 26 | ||
Deferred tax assets - current | 94 | 100 | ||
Other current assets | 158 | 55 | ||
TOTAL CURRENT ASSETS | 3,120 | 3,076 | ||
INVESTMENTS | 271 | 247 | ||
UTILITY PLANT AT ORIGINAL COST | ||||
General | 2,265 | 2,154 | ||
TOTAL | 33,584 | 31,312 | ||
Less: Accumulated depreciation | 6,970 | 6,469 | ||
Net | 26,614 | 24,843 | ||
Construction work in progress | 971 | 1,303 | ||
NET UTILITY PLANT | 27,585 | 26,146 | ||
NON-UTILITY PLANT | ||||
Non-utility property, less accumulated depreciation | 5 | 4 | ||
NET PLANT | 27,590 | 26,150 | ||
OTHER NONCURRENT ASSETS | ||||
Goodwill | 245 | 245 | ||
Regulatory assets | 8,481 | 6,639 | ||
Other deferred charges and noncurrent assets | 175 | 146 | ||
TOTAL OTHER NONCURRENT ASSETS | 8,656 | 6,785 | ||
TOTAL ASSETS | 39,637 | 36,258 | ||
CURRENT LIABILITIES | ||||
Long-term debt due within one year | 350 | [1] | 475 | [1] |
Notes payable | 450 | 1,210 | ||
Accounts payable | 802 | 824 | ||
Accounts payable to affiliated companies | 23 | 45 | ||
Customer deposits | 330 | 308 | ||
Accrued taxes | 46 | 46 | ||
Accrued taxes to affiliated companies | 10 | 413 | ||
Accrued interest | 117 | 139 | ||
Accrued wages | 84 | 82 | ||
Fair value of derivative liabilities | 48 | 12 | ||
Regulatory liabilities | 142 | 107 | ||
Other current liabilities | 415 | 385 | ||
TOTAL CURRENT LIABILITIES | 2,817 | 4,046 | ||
NONCURRENT LIABILITIES | ||||
Provision for injuries and damages | 176 | 180 | ||
Pensions and retiree benefits | 3,493 | 1,453 | ||
Superfund and other environmental costs | 666 | 644 | ||
Asset retirement obligations | 185 | 143 | ||
Fair value of derivative liabilities | 10 | 3 | ||
Deferred income taxes and investment tax credits | 8,257 | 7,832 | ||
Regulatory liabilities | 1,837 | 1,598 | ||
Other deferred credits and noncurrent liabilities | 144 | 146 | ||
TOTAL NONCURRENT LIABILITIES | 14,768 | 11,999 | ||
LONG-TERM DEBT | 10,864 | [1] | 9,366 | [1] |
EQUITY | ||||
COMMON SHAREHOLDER'S EQUITY (See Statement of Shareholder's Equity) | 11,188 | 10,847 | ||
TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY | 39,637 | 36,258 | ||
Electric Transmission [Member] | ||||
UTILITY PLANT AT ORIGINAL COST | ||||
Utility plant, at original cost | 25,091 | 23,450 | ||
Electric Transmission [Member] | CECONY [Member] | ||||
UTILITY PLANT AT ORIGINAL COST | ||||
Utility plant, at original cost | 23,599 | 22,073 | ||
Gas [Member] | ||||
UTILITY PLANT AT ORIGINAL COST | ||||
Utility plant, at original cost | 6,102 | 5,494 | ||
Gas [Member] | CECONY [Member] | ||||
UTILITY PLANT AT ORIGINAL COST | ||||
Utility plant, at original cost | 5,469 | 4,891 | ||
Steam [Member] | ||||
UTILITY PLANT AT ORIGINAL COST | ||||
Utility plant, at original cost | 2,251 | 2,194 | ||
Steam [Member] | CECONY [Member] | ||||
UTILITY PLANT AT ORIGINAL COST | ||||
Utility plant, at original cost | $2,251 | $2,194 | ||
[1] | Rates are to be reset weekly or by auction held every 35 days; December 31, 2014 rates shown. |
Consolidated_Balance_Sheet_Par
Consolidated Balance Sheet (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Accounts receivable - customers, allowance for uncollectible accounts | $96 | $93 |
Other receivables, allowance for uncollectible accounts | 10 | 10 |
Non-utility property, accumulated depreciation | 91 | 90 |
Intangible assets, accumulated amortization | 4 | 4 |
CECONY [Member] | ||
Accounts receivable - customers, allowance for uncollectible accounts | 90 | 87 |
Other receivables, allowance for uncollectible accounts | 8 | 8 |
Non-utility property, accumulated depreciation | $25 | $25 |
Consolidated_Statement_of_Comm
Consolidated Statement of Common Shareholders' Equity (USD $) | Total | CECONY [Member] | Common Stock [Member] | Common Stock [Member] | Additional Paid-In Capital [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Capital Stock Expense [Member] | Capital Stock Expense [Member] | Accumulated Other Comprehensive Income/(Loss) [Member] | Accumulated Other Comprehensive Income/(Loss) [Member] | Noncontrolling Interest [Member] | Repurchased Con Edison Stock [Member] |
In Millions, except Share data | CECONY [Member] | CECONY [Member] | CECONY [Member] | CECONY [Member] | CECONY [Member] | CECONY [Member] | |||||||||
BALANCE at Dec. 31, 2011 | $10,218 | $589 | $4,234 | $6,429 | ($64) | ($8) | ($962) | ||||||||
BALANCE at Dec. 31, 2011 | 11,436 | 32 | 4,991 | 7,568 | -1,033 | -64 | -58 | ||||||||
BALANCE (in shares) at Dec. 31, 2011 | 292,888,521 | 235,488,094 | 23,194,075 | ||||||||||||
Net income for common stock | 1,138 | 1,014 | 1,138 | ||||||||||||
NET INCOME | 1,141 | 1,017 | 1,017 | ||||||||||||
Common stock dividends | -709 | -682 | -709 | -682 | |||||||||||
Issuance of common shares for stock plans, net of repurchases | -1 | -4 | 3 | ||||||||||||
Cumulative preferred dividends | -3 | -3 | -3 | ||||||||||||
Issuance of common shares for stock plans, net of repurchases (in shares) | -16,625 | 16,625 | |||||||||||||
Preferred stock redemption | 3 | 3 | |||||||||||||
Other comprehensive income | 5 | -1 | 5 | -1 | |||||||||||
BALANCE at Dec. 31, 2012 | 11,869 | 32 | 4,991 | 7,997 | -1,037 | -61 | -53 | 0 | |||||||
BALANCE at Dec. 31, 2012 | 10,552 | 589 | 4,234 | 6,761 | -61 | -9 | -962 | ||||||||
BALANCE (in shares) at Dec. 31, 2012 | 292,871,896 | 235,488,094 | 23,210,700 | ||||||||||||
Net income for common stock | 1,062 | 1,020 | 1,062 | ||||||||||||
NET INCOME | 1,062 | 1,020 | 1,020 | ||||||||||||
Common stock dividends | -721 | -728 | -721 | -728 | |||||||||||
Issuance of common shares for stock plans, net of repurchases | 7 | 4 | 3 | ||||||||||||
Issuance of common shares for stock plans, net of repurchases (in shares) | 500 | -500 | |||||||||||||
Other comprehensive income | 28 | 3 | 28 | 3 | |||||||||||
BALANCE at Dec. 31, 2013 | 12,245 | 32 | 4,995 | 8,338 | -1,034 | -61 | -25 | 0 | |||||||
BALANCE at Dec. 31, 2013 | 12,245 | 10,847 | 589 | 4,234 | 7,053 | -61 | -6 | -962 | |||||||
BALANCE (in shares) at Dec. 31, 2013 | 292,872,396 | 235,488,094 | 292,872,396 | 235,488,094 | 23,210,200 | ||||||||||
Net income for common stock | 1,092 | 1,058 | 1,092 | ||||||||||||
NET INCOME | 1,092 | 1,058 | 1,058 | ||||||||||||
Common stock dividends | -739 | -712 | -739 | -712 | |||||||||||
Issuance of common shares for stock plans, net of repurchases | -2 | -4 | 2 | ||||||||||||
Issuance of common shares for stock plans, net of repurchases (in shares) | 3,800 | -3,800 | |||||||||||||
Other comprehensive income | -20 | -5 | -20 | -5 | |||||||||||
Noncontrolling interest | 9 | 9 | |||||||||||||
BALANCE at Dec. 31, 2014 | 12,585 | 32 | 4,991 | 8,691 | -1,032 | -61 | -45 | 9 | |||||||
BALANCE at Dec. 31, 2014 | $12,576 | $11,188 | $589 | $4,234 | $7,399 | ($61) | ($11) | ($962) | |||||||
BALANCE (in shares) at Dec. 31, 2014 | 292,876,196 | 235,488,094 | 292,876,196 | 235,488,094 | 23,206,400 |
Schedule_of_Capitalization_Equ
Schedule of Capitalization - Equity (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | ||
Schedule of Capitalization, Equity [Line Items] | ||
TOTAL COMMON SHAREHOLDERS' EQUITY BEFORE ACCUMULATED OTHER COMPREHENSIVE LOSS | $12,621 | $12,270 |
TOTAL COMMON SHAREHOLDERS' EQUITY BEFORE ACCUMULATED OTHER COMPREHENSIVE LOSS (in shares) | 292,876,196 | 292,872,396 |
Pension plan liability adjustments, net of taxes | -42 | -22 |
Unrealized gains/(losses) on derivatives qualified as cash flow hedges, less reclassification adjustment for gains/(losses) included in net income and reclassification adjustment | -3 | -3 |
TOTAL ACCUMULATED OTHER COMPREHENSIVE LOSS, NET OF TAXES | -45 | -25 |
Common Shareholders' Equity | 12,576 | 12,245 |
Noncontrolling interest | 9 | |
TOTAL EQUITY (See Statement of Equity) | 12,585 | 12,245 |
CECONY [Member] | ||
Schedule of Capitalization, Equity [Line Items] | ||
TOTAL COMMON SHAREHOLDERS' EQUITY BEFORE ACCUMULATED OTHER COMPREHENSIVE LOSS | 11,199 | 10,853 |
TOTAL COMMON SHAREHOLDERS' EQUITY BEFORE ACCUMULATED OTHER COMPREHENSIVE LOSS (in shares) | 235,488,094 | 235,488,094 |
Pension plan liability adjustments, net of taxes | -8 | -3 |
Unrealized gains/(losses) on derivatives qualified as cash flow hedges, less reclassification adjustment for gains/(losses) included in net income and reclassification adjustment | -3 | -3 |
TOTAL ACCUMULATED OTHER COMPREHENSIVE LOSS, NET OF TAXES | -11 | -6 |
Common Shareholders' Equity | 11,188 | 10,847 |
TOTAL COMMON SHAREHOLDER'S EQUITY (See Statement of Shareholder's Equity) | $11,188 | $10,847 |
Statement_of_Capitalization_Lo
Statement of Capitalization - Long-term Debt (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
TOTAL DEBENTURES | $10,685 | $9,310 | ||
TOTAL TRANSITION BONDS | 18 | 22 | ||
TOTAL TAX-EXEMPT DEBT | 1,130 | 1,130 | ||
Other long-term debt | 380 | 532 | ||
Unamortized debt discount | -22 | -20 | ||
TOTAL | 12,191 | 10,974 | ||
Less: Long-term debt due within one year | 560 | 485 | ||
TOTAL LONG-TERM DEBT | 11,631 | 10,489 | ||
TOTAL | 12,191 | 10,974 | ||
TOTAL CAPITALIZATION | 24,207 | 22,734 | ||
CECONY [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
TOTAL DEBENTURES | 10,150 | 8,775 | ||
TOTAL TAX-EXEMPT DEBT | 1,086 | [1] | 1,086 | [1] |
Unamortized debt discount | -22 | [1] | -20 | [1] |
TOTAL | 11,214 | [1] | 9,841 | [1] |
Less: Long-term debt due within one year | 350 | [1] | 475 | [1] |
TOTAL LONG-TERM DEBT | 10,864 | [1] | 9,366 | [1] |
TOTAL | 11,214 | [1] | 9,841 | [1] |
TOTAL CAPITALIZATION | 22,052 | [1] | 20,213 | [1] |
Debenture Series 2004A, 4.70% Due 2014 [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 200 | |||
Interest Rate | 4.70% | |||
Maturity Date | 2014 | |||
Debenture Series 2004A, 4.70% Due 2014 [Member] | CECONY [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 200 | |||
Interest Rate | 4.70% | |||
Maturity Date | 2014 | |||
Debenture Series 2009A, 5.55% Due 2014 [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 275 | |||
Interest Rate | 5.55% | |||
Maturity Date | 2014 | |||
Debenture Series 2009A, 5.55% Due 2014 [Member] | CECONY [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 275 | |||
Interest Rate | 5.55% | |||
Maturity Date | 2014 | |||
Debenture Series 2005A, 5.30% Due 2015 [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 40 | 40 | ||
Interest Rate | 5.30% | |||
Maturity Date | 2015 | |||
Debenture Series 2005C, 5.375% Due 2015 [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 350 | 350 | ||
Interest Rate | 5.38% | |||
Maturity Date | 2015 | |||
Debenture Series 2005C, 5.375% Due 2015 [Member] | CECONY [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 350 | 350 | ||
Interest Rate | 5.38% | |||
Maturity Date | 2015 | |||
Debenture Series 2010A, 2.50% Due 2015 [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 55 | 55 | ||
Interest Rate | 2.50% | |||
Maturity Date | 2015 | |||
Debenture Series 2006A, 5.45% Due 2016 [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 75 | 75 | ||
Interest Rate | 5.45% | |||
Maturity Date | 2016 | |||
Debenture Series 2006C, 5.50% Due 2016 [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 400 | 400 | ||
Interest Rate | 5.50% | |||
Maturity Date | 2016 | |||
Debenture Series 2006C, 5.50% Due 2016 [Member] | CECONY [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 400 | 400 | ||
Interest Rate | 5.50% | |||
Maturity Date | 2016 | |||
Debenture Series 2006D, 5.30% Due 2016 [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 250 | 250 | ||
Interest Rate | 5.30% | |||
Maturity Date | 2016 | |||
Debenture Series 2006D, 5.30% Due 2016 [Member] | CECONY [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 250 | 250 | ||
Interest Rate | 5.30% | |||
Maturity Date | 2016 | |||
Debenture Series 2008A, 5.85% Due 2018 [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 600 | 600 | ||
Interest Rate | 5.85% | |||
Maturity Date | 2018 | |||
Debenture Series 2008A, 5.85% Due 2018 [Member] | CECONY [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 600 | 600 | ||
Interest Rate | 5.85% | |||
Maturity Date | 2018 | |||
Debenture Series 2008A, 6.15% Due 2018 [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 50 | 50 | ||
Interest Rate | 6.15% | |||
Maturity Date | 2018 | |||
Debenture Series 2008C, 7.125% Due 2018 [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 600 | 600 | ||
Interest Rate | 7.13% | |||
Maturity Date | 2018 | |||
Debenture Series 2008C, 7.125% Due 2018 [Member] | CECONY [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 600 | 600 | ||
Interest Rate | 7.13% | |||
Maturity Date | 2018 | |||
Debenture Series 2009A, 4.96% Due 2019 [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 60 | 60 | ||
Interest Rate | 4.96% | |||
Maturity Date | 2019 | |||
Debenture Series 2009B, 6.65% Due 2019 [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 475 | 475 | ||
Interest Rate | 6.65% | |||
Maturity Date | 2019 | |||
Debenture Series 2009B, 6.65% Due 2019 [Member] | CECONY [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 475 | 475 | ||
Interest Rate | 6.65% | |||
Maturity Date | 2019 | |||
Debenture Series 2010A, 4.45% Due 2020 [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 350 | 350 | ||
Interest Rate | 4.45% | |||
Maturity Date | 2020 | |||
Debenture Series 2010A, 4.45% Due 2020 [Member] | CECONY [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 350 | 350 | ||
Interest Rate | 4.45% | |||
Maturity Date | 2020 | |||
Debenture Series 2014B, 3.30% Due 2024 [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 250 | |||
Interest Rate | 3.30% | |||
Maturity Date | 2024 | |||
Debenture Series 2014B, 3.30% Due 2024 [Member] | CECONY [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 250 | |||
Interest Rate | 3.30% | |||
Maturity Date | 2024 | |||
Debenture Series 1997F, 6.50% Due 2027 [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 80 | 80 | ||
Interest Rate | 6.50% | |||
Maturity Date | 2027 | |||
Debenture Series 2003A, 5.875% Due 2033 [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 175 | 175 | ||
Interest Rate | 5.88% | |||
Maturity Date | 2033 | |||
Debenture Series 2003A, 5.875% Due 2033 [Member] | CECONY [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 175 | 175 | ||
Interest Rate | 5.88% | |||
Maturity Date | 2033 | |||
Debenture Series 2003C, 5.10% Due 2033 [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 200 | 200 | ||
Interest Rate | 5.10% | |||
Maturity Date | 2033 | |||
Debenture Series 2003C, 5.10% Due 2033 [Member] | CECONY [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 200 | 200 | ||
Interest Rate | 5.10% | |||
Maturity Date | 2033 | |||
Debenture Series 2004B, 5.70% Due 2034 [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 200 | 200 | ||
Interest Rate | 5.70% | |||
Maturity Date | 2034 | |||
Debenture Series 2004B, 5.70% Due 2034 [Member] | CECONY [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 200 | 200 | ||
Interest Rate | 5.70% | |||
Maturity Date | 2034 | |||
Debenture Series 2005A, 5.30% Due 2035 [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 350 | 350 | ||
Interest Rate | 5.30% | |||
Maturity Date | 2035 | |||
Debenture Series 2005A, 5.30% Due 2035 [Member] | CECONY [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 350 | 350 | ||
Interest Rate | 5.30% | |||
Maturity Date | 2035 | |||
Debenture Series 2005B, 5.25% Due 2035 [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 125 | 125 | ||
Interest Rate | 5.25% | |||
Maturity Date | 2035 | |||
Debenture Series 2005B, 5.25% Due 2035 [Member] | CECONY [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 125 | 125 | ||
Interest Rate | 5.25% | |||
Maturity Date | 2035 | |||
Debenture Series 2006A, 5.85% Due 2036 [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 400 | 400 | ||
Interest Rate | 5.85% | |||
Maturity Date | 2036 | |||
Debenture Series 2006A, 5.85% Due 2036 [Member] | CECONY [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 400 | 400 | ||
Interest Rate | 5.85% | |||
Maturity Date | 2036 | |||
Debenture Series 2006B, 6.20% Due 2036 [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 400 | 400 | ||
Interest Rate | 6.20% | |||
Maturity Date | 2036 | |||
Debenture Series 2006B, 6.20% Due 2036 [Member] | CECONY [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 400 | 400 | ||
Interest Rate | 6.20% | |||
Maturity Date | 2036 | |||
Debenture Series 2006E, 5.70% Due 2036 [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 250 | 250 | ||
Interest Rate | 5.70% | |||
Maturity Date | 2036 | |||
Debenture Series 2006E, 5.70% Due 2036 [Member] | CECONY [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 250 | 250 | ||
Interest Rate | 5.70% | |||
Maturity Date | 2036 | |||
Debenture Series 2007A, 6.30% Due 2037 [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 525 | 525 | ||
Interest Rate | 6.30% | |||
Maturity Date | 2037 | |||
Debenture Series 2007A, 6.30% Due 2037 [Member] | CECONY [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 525 | 525 | ||
Interest Rate | 6.30% | |||
Maturity Date | 2037 | |||
Debenture Series 2008B, 6.75% Due 2038 [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 600 | 600 | ||
Interest Rate | 6.75% | |||
Maturity Date | 2038 | |||
Debenture Series 2008B, 6.75% Due 2038 [Member] | CECONY [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 600 | 600 | ||
Interest Rate | 6.75% | |||
Maturity Date | 2038 | |||
Debenture Series 2009B, 6.00% Due 2039 [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 60 | 60 | ||
Interest Rate | 6.00% | |||
Maturity Date | 2039 | |||
Debenture Series 2009C, 5.50% Due 2039 [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 600 | 600 | ||
Interest Rate | 5.50% | |||
Maturity Date | 2039 | |||
Debenture Series 2009C, 5.50% Due 2039 [Member] | CECONY [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 600 | 600 | ||
Interest Rate | 5.50% | |||
Maturity Date | 2039 | |||
Debenture Series 2010B, 5.70% Due 2040 [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 350 | 350 | ||
Interest Rate | 5.70% | |||
Maturity Date | 2040 | |||
Debenture Series 2010B, 5.70% Due 2040 [Member] | CECONY [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 350 | 350 | ||
Interest Rate | 5.70% | |||
Maturity Date | 2040 | |||
Debenture Series 2010B, 5.50% Due 2040 [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 115 | 115 | ||
Interest Rate | 5.50% | |||
Maturity Date | 2040 | |||
Debenture Series 2012A, 4.20% Due 2042 [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 400 | 400 | ||
Interest Rate | 4.20% | |||
Maturity Date | 2042 | |||
Debenture Series 2012A, 4.20% Due 2042 [Member] | CECONY [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 400 | 400 | ||
Interest Rate | 4.20% | |||
Maturity Date | 2042 | |||
Debenture Series Two Thousand Thirteena Three Point Nine Five Percent Due Two Thousand Forty Three [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 700 | 700 | ||
Interest Rate | 3.95% | |||
Maturity Date | 2043 | |||
Debenture Series Two Thousand Thirteena Three Point Nine Five Percent Due Two Thousand Forty Three [Member] | CECONY [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 700 | 700 | ||
Interest Rate | 3.95% | |||
Maturity Date | 2043 | |||
Debenture Series 2014A, 4.45% Due 2044 [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 850 | |||
Interest Rate | 4.45% | |||
Maturity Date | 2044 | |||
Debenture Series 2014A, 4.45% Due 2044 [Member] | CECONY [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 850 | |||
Interest Rate | 4.45% | |||
Maturity Date | 2044 | |||
Debenture Series 2014C, 4.625% Due 2054 [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 750 | |||
Interest Rate | 4.63% | |||
Maturity Date | 2054 | |||
Debenture Series 2014C, 4.625% Due 2054 [Member] | CECONY [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 750 | |||
Interest Rate | 4.63% | |||
Maturity Date | 2054 | |||
Debenture Series 2004-1, 5.22% Due 2019 [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 18 | [2] | 22 | [2] |
Interest Rate | 5.22% | [2] | ||
Maturity Date | 2019 | [2] | ||
Debenture Series 1995, 0.06% Due 2015 [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 44 | [1] | 44 | [1] |
Interest Rate | 0.06% | [1] | ||
Maturity Date | 2015 | [1] | ||
Tax Exempt Debt Series 2004B-1, 0.13% Due 2032 [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 127 | [1] | 127 | [1] |
Interest Rate | 0.13% | [1] | ||
Maturity Date | 2032 | [1] | ||
Tax Exempt Debt Series 2004B-1, 0.13% Due 2032 [Member] | CECONY [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 127 | [1] | 127 | [1] |
Interest Rate | 0.13% | [1] | ||
Maturity Date | 2032 | [1] | ||
Tax-Exempt Debt Series 1999A, 0.14% Due 2034 [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 293 | [1] | 293 | [1] |
Interest Rate | 0.14% | [1] | ||
Maturity Date | 2034 | [1] | ||
Tax-Exempt Debt Series 1999A, 0.14% Due 2034 [Member] | CECONY [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 293 | [1] | 293 | [1] |
Interest Rate | 0.14% | [1] | ||
Maturity Date | 2034 | [1] | ||
Tax Exempt Debt Series 2004B-2, 0.14% Due 2035 [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 20 | [1] | 20 | [1] |
Interest Rate | 0.14% | [1] | ||
Maturity Date | 2035 | [1] | ||
Tax Exempt Debt Series 2004B-2, 0.14% Due 2035 [Member] | CECONY [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 20 | [1] | 20 | [1] |
Interest Rate | 0.14% | [1] | ||
Maturity Date | 2035 | [1] | ||
Tax-Exempt Debt Series 2001B, 0.11% Due 2036 [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 98 | [1] | 98 | [1] |
Interest Rate | 0.11% | [1] | ||
Maturity Date | 2036 | [1] | ||
Tax-Exempt Debt Series 2001B, 0.11% Due 2036 [Member] | CECONY [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 98 | [1] | 98 | [1] |
Interest Rate | 0.11% | [1] | ||
Maturity Date | 2036 | [1] | ||
Tax-Exempt Debt Series 2010A, 0.03% Due 2036 [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 225 | [1] | 225 | [1] |
Interest Rate | 0.03% | [1] | ||
Maturity Date | 2036 | [1] | ||
Tax-Exempt Debt Series 2010A, 0.03% Due 2036 [Member] | CECONY [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 225 | [1] | 225 | [1] |
Interest Rate | 0.03% | [1] | ||
Maturity Date | 2036 | [1] | ||
Tax-Exempt Debt Series 2004A, 0.10% Due 2039 [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 98 | [1] | 98 | [1] |
Interest Rate | 0.10% | [1] | ||
Maturity Date | 2039 | [1] | ||
Tax-Exempt Debt Series 2004A, 0.10% Due 2039 [Member] | CECONY [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 98 | [1] | 98 | [1] |
Interest Rate | 0.10% | [1] | ||
Maturity Date | 2039 | [1] | ||
Tax-Exempt Debt Series 2004C, 0.04% Due 2039 [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 99 | [1] | 99 | [1] |
Interest Rate | 0.04% | [1] | ||
Maturity Date | 2039 | [1] | ||
Tax-Exempt Debt Series 2004C, 0.04% Due 2039 [Member] | CECONY [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 99 | [1] | 99 | [1] |
Interest Rate | 0.04% | [1] | ||
Maturity Date | 2039 | [1] | ||
Tax-Exempt Debt Series 2005A, 0.03% Due 2039 [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | 126 | [1] | 126 | [1] |
Interest Rate | 0.03% | [1] | ||
Maturity Date | 2039 | [1] | ||
Tax-Exempt Debt Series 2005A, 0.03% Due 2039 [Member] | CECONY [Member] | ||||
Schedule of Capitalization, Long-term Debt [Line Items] | ||||
Debt Instrument, Fair Value | $126 | [1] | $126 | [1] |
Interest Rate | 0.03% | [1] | ||
Maturity Date | 2039 | [1] | ||
[1] | Rates are to be reset weekly or by auction held every 35 days; December 31, 2014 rates shown. | |||
[2] | The final date to pay the entire remaining unpaid principal balance, if any, of all outstanding bonds is May 17, 2021. |
General
General | 12 Months Ended |
Dec. 31, 2014 | |
General | General |
These combined notes accompany and form an integral part of the separate consolidated financial statements of each of the two separate registrants: Consolidated Edison, Inc. and its subsidiaries (Con Edison) and Consolidated Edison Company of New York, Inc. and its subsidiaries (CECONY). CECONY is a subsidiary of Con Edison and as such its financial condition and results of operations and cash flows, which are presented separately in the CECONY consolidated financial statements, are also consolidated, along with those of Con Edison’s other utility subsidiary, Orange and Rockland Utilities, Inc. (O&R), and Con Edison’s competitive energy businesses (discussed below) in Con Edison’s consolidated financial statements. The term “Utilities” is used in these notes to refer to CECONY and O&R. | |
As used in these notes, the term “Companies” refers to Con Edison and CECONY and, except as otherwise noted, the information in these combined notes relates to each of the Companies. However, CECONY makes no representation as to information relating to Con Edison or the subsidiaries of Con Edison other than itself. | |
Con Edison has two regulated utility subsidiaries: CECONY and O&R. CECONY provides electric service and gas service in New York City and Westchester County. The company also provides steam service in parts of Manhattan. O&R, along with its regulated utility subsidiaries, provides electric service in southeastern New York and adjacent areas of northern New Jersey and eastern Pennsylvania and gas service in southeastern New York and adjacent areas of eastern Pennsylvania. Con Edison has the following competitive energy businesses: Consolidated Edison Solutions, Inc. (Con Edison Solutions), a company which sells to retail customers electricity purchased in wholesale markets and enters into related hedging transactions and also provides energy-related products and services to retail customers; Consolidated Edison Energy, Inc. (Con Edison Energy), a company that provides energy-related products and services to wholesale customers; and Consolidated Edison Development, Inc. (Con Edison Development), a company that develops, owns and operates renewable and energy infrastructure projects. In addition, in 2014 Con Edison formed Consolidated Edison Transmission LLC (Con Edison Transmission) to invest in a transmission company. See information about Con Edison Transmission under “Guarantees” in Note H. | |
CECONY [Member] | |
General | General |
These combined notes accompany and form an integral part of the separate consolidated financial statements of each of the two separate registrants: Consolidated Edison, Inc. and its subsidiaries (Con Edison) and Consolidated Edison Company of New York, Inc. and its subsidiaries (CECONY). CECONY is a subsidiary of Con Edison and as such its financial condition and results of operations and cash flows, which are presented separately in the CECONY consolidated financial statements, are also consolidated, along with those of Con Edison’s other utility subsidiary, Orange and Rockland Utilities, Inc. (O&R), and Con Edison’s competitive energy businesses (discussed below) in Con Edison’s consolidated financial statements. The term “Utilities” is used in these notes to refer to CECONY and O&R. | |
As used in these notes, the term “Companies” refers to Con Edison and CECONY and, except as otherwise noted, the information in these combined notes relates to each of the Companies. However, CECONY makes no representation as to information relating to Con Edison or the subsidiaries of Con Edison other than itself. | |
Con Edison has two regulated utility subsidiaries: CECONY and O&R. CECONY provides electric service and gas service in New York City and Westchester County. The company also provides steam service in parts of Manhattan. O&R, along with its regulated utility subsidiaries, provides electric service in southeastern New York and adjacent areas of northern New Jersey and eastern Pennsylvania and gas service in southeastern New York and adjacent areas of eastern Pennsylvania. Con Edison has the following competitive energy businesses: Consolidated Edison Solutions, Inc. (Con Edison Solutions), a company which sells to retail customers electricity purchased in wholesale markets and enters into related hedging transactions and also provides energy-related products and services to retail customers; Consolidated Edison Energy, Inc. (Con Edison Energy), a company that provides energy-related products and services to wholesale customers; and Consolidated Edison Development, Inc. (Con Edison Development), a company that develops, owns and operates renewable and energy infrastructure projects. In addition, in 2014 Con Edison formed Consolidated Edison Transmission LLC (Con Edison Transmission) to invest in a transmission company. See information about Con Edison Transmission under “Guarantees” in Note H. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Summary of Significant Accounting Policies | Note A – Summary of Significant Accounting Policies | ||||||||||||||||
Principles of Consolidation | |||||||||||||||||
The Companies’ consolidated financial statements include the accounts of their respective majority-owned subsidiaries, and variable interest entities (see Note Q), as required. All intercompany balances and transactions have been eliminated. | |||||||||||||||||
Accounting Policies | |||||||||||||||||
The accounting policies of Con Edison and its subsidiaries conform to generally accepted accounting principles in the United States of America (GAAP). For the Utilities, these accounting principles include the accounting rules for regulated operations and the accounting requirements of the Federal Energy Regulatory Commission (FERC) and the state regulators having jurisdiction. | |||||||||||||||||
The accounting rules for regulated operations specify the economic effects that result from the causal relationship of costs and revenues in the rate-regulated environment and how these effects are to be accounted for by a regulated enterprise. Revenues intended to cover some costs may be recorded either before or after the costs are incurred. If regulation provides assurance that incurred costs will be recovered in the future, these costs would be recorded as deferred charges or “regulatory assets” under the accounting rules for regulated operations. If revenues are recorded for costs that are expected to be incurred in the future, these revenues would be recorded as deferred credits or “regulatory liabilities” under the accounting rules for regulated operations. | |||||||||||||||||
The Utilities’ principal regulatory assets and liabilities are detailed in Note B. The Utilities are receiving or being credited with a return on all of their regulatory assets for which a cash outflow has been made, and are paying or being charged with a return on all of their regulatory liabilities for which a cash inflow has been received. The Utilities’ regulatory assets and liabilities will be recovered from customers, or applied for customer benefit, in accordance with rate provisions approved by the applicable state regulators. | |||||||||||||||||
Other significant accounting policies of the Companies are referenced below in this Note A and in the notes that follow. | |||||||||||||||||
Plant and Depreciation | |||||||||||||||||
Utility Plant | |||||||||||||||||
Utility plant is stated at original cost. The cost of repairs and maintenance is charged to expense and the cost of betterments is capitalized. The capitalized cost of additions to utility plant includes indirect costs such as engineering, supervision, payroll taxes, pensions, other benefits and an allowance for funds used during construction (AFUDC). The original cost of property is charged to expense over the estimated useful lives of the assets. Upon retirement, the original cost of property is charged to accumulated depreciation. See Note R. | |||||||||||||||||
Rates used for AFUDC include the cost of borrowed funds and a reasonable rate of return on the Utilities’ own funds when so used, determined in accordance with regulations of the FERC or the state public utility regulatory authority having jurisdiction. The rate is compounded semiannually, and the amounts applicable to borrowed funds are treated as a reduction of interest charges, while the amounts applicable to the Utilities’ own funds are credited to other income (deductions). The AFUDC rates for CECONY were 1.6 percent, 4.0 percent and 6.5 percent for 2014, 2013 and 2012, respectively. The AFUDC rates for O&R were 2.6 percent, 5.7 percent and 7.0 percent for 2014, 2013 and 2012, respectively. | |||||||||||||||||
The Utilities generally compute annual charges for depreciation using the straight-line method for financial statement purposes, with rates based on average service lives and net salvage factors. The average depreciation rates for CECONY were 3.1 percent, 3.2 percent and 3.1 percent for 2014, 2013 and 2012, respectively. The average depreciation rates for O&R were 2.9 percent, 2.8 percent and 2.9 percent for 2014, 2013 and 2012, respectively. | |||||||||||||||||
The estimated lives for utility plant for CECONY range from 5 to 85 years for electric and gas, 5 to 80 years for steam and 5 to 55 years for general plant. For O&R, the estimated lives for utility plant range from 5 to 75 years for electric and gas and 5 to 50 years for general plant. | |||||||||||||||||
At December 31, 2014 and 2013, the capitalized cost of the Companies’ utility plant, net of accumulated depreciation, was as follows: | |||||||||||||||||
Con Edison | CECONY | ||||||||||||||||
(Millions of Dollars) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Electric | |||||||||||||||||
Generation | $ | 451 | $ | 452 | $ | 451 | $ | 452 | |||||||||
Transmission | 2,956 | 2,776 | 2,744 | 2,597 | |||||||||||||
Distribution | 16,361 | 15,277 | 15,531 | 14,496 | |||||||||||||
Gas* | 5,006 | 4,469 | 4,530 | 4,013 | |||||||||||||
Steam | 1,795 | 1,790 | 1,795 | 1,790 | |||||||||||||
General | 1,650 | 1,565 | 1,498 | 1,433 | |||||||||||||
Held for future use | 76 | 73 | 65 | 62 | |||||||||||||
Construction work in progress | 1,031 | 1,393 | 971 | 1,303 | |||||||||||||
Net Utility Plant | $ | 29,326 | $ | 27,795 | $ | 27,585 | $ | 26,146 | |||||||||
* | Primarily distribution. | ||||||||||||||||
Under the Utilities’ rate plans, the aggregate annual depreciation allowance in effect at December 31, 2014 was $1,048 million, including $993 million under CECONY’s electric, gas and steam rate plans that have been approved by the New York State Public Service Commission (NYSPSC). | |||||||||||||||||
Non-Utility Plant | |||||||||||||||||
Non-utility plant is stated at original cost. For Con Edison, non-utility plant consists primarily of the competitive energy businesses’ renewable electric production and gas storage. For the Utilities, non-utility plant consists of land and conduit for telecommunication use. Depreciation on these assets is computed using the straight-line method for financial statement purposes over their estimated useful lives, which range from 3 to 30 years. | |||||||||||||||||
Goodwill | |||||||||||||||||
Con Edison tests goodwill for impairment at least annually. Goodwill is tested for impairment using a two-step approach. The first step of the goodwill impairment test compares the estimated fair value of a reporting unit with its carrying value, including goodwill. If the estimated fair value of a reporting unit exceeds its carrying value, goodwill of the reporting unit is considered not impaired. If the carrying value exceeds the estimated fair value of the reporting unit, the second step is performed to measure the amount of impairment loss, if any. The second step requires a calculation of the implied fair value of goodwill. See Note K. | |||||||||||||||||
Impairments | |||||||||||||||||
Con Edison evaluates the impairment of long-lived assets, based on projections of undiscounted future cash flows, whenever events or changes in circumstances indicate that the carrying amounts of such assets may not be recoverable. In the event an evaluation indicates that such cash flows cannot be expected to be sufficient to fully recover the assets, the assets are written down to their estimated fair value. No impairment charges were recognized in 2014, 2013 or 2012. | |||||||||||||||||
Revenues | |||||||||||||||||
The Utilities and Con Edison Solutions recognize revenues for energy service on a monthly billing cycle basis. The Utilities defer over a 12-month period net interruptible gas revenues, other than those authorized by the NYSPSC to be retained by the Utilities, for refund to firm gas sales and transportation customers. The Utilities and Con Edison Solutions accrue revenues at the end of each month for estimated energy service not yet billed to customers. | |||||||||||||||||
CECONY’s electric and gas rate plans and O&R’s New York electric and gas rate plans each contain a revenue decoupling mechanism under which the company’s actual energy delivery revenues are compared with the authorized delivery revenues and the difference accrued, with interest, for refund to, or recovery from, customers, as applicable. See “Rate Plans” in Note B. | |||||||||||||||||
The NYSPSC requires utilities to record gross receipts tax revenues and expenses on a gross income statement presentation basis (i.e., included in both revenue and expense). The recovery of these taxes is generally provided for in the revenue requirement within each of the respective NYSPSC approved rate plans. Total excise taxes (inclusive of gross receipts taxes) recorded in operating revenues were as follows: | |||||||||||||||||
For the Years Ended December 31, | |||||||||||||||||
(Millions of Dollars) | 2014 | 2013 | 2012 | ||||||||||||||
Con Edison | $ | 365 | $ | 354 | $ | 334 | |||||||||||
CECONY | 343 | 329 | 306 | ||||||||||||||
Recoverable Energy Costs | |||||||||||||||||
The Utilities generally recover all of their prudently incurred fuel, purchased power and gas costs, including hedging gains and losses, in accordance with rate provisions approved by the applicable state public utility regulators. If the actual energy supply costs for a given month are more or less than the amounts billed to customers for that month, the difference in most cases is recoverable from or refundable to customers. Differences between actual and billed electric and steam supply costs and costs of its electric demand management programs are generally deferred for charge or refund to customers during the next billing cycle (normally within one or two months). For the Utilities’ gas costs, differences between actual and billed gas costs during the 12-month period ending each August are charged or refunded to customers during a subsequent 12-month period. | |||||||||||||||||
New York Independent System Operator (NYISO) | |||||||||||||||||
The Utilities purchase electricity through the wholesale electricity market administered by the NYISO. The difference between purchased power and related costs initially billed to the Utilities by the NYISO and the actual cost of power subsequently calculated by the NYISO is refunded by the NYISO to the Utilities, or paid to the NYISO by the Utilities. The reconciliation payments or receipts are recoverable from or refundable to the Utilities’ customers. | |||||||||||||||||
Certain other payments to or receipts from the NYISO are also subject to reconciliation, with shortfalls or amounts in excess of specified rate allowances recoverable from or refundable to customers. These include proceeds from the sale through the NYISO of transmission rights on CECONY’s transmission system (transmission congestion contracts or TCCs). | |||||||||||||||||
Temporary Cash Investments | |||||||||||||||||
Temporary cash investments are short-term, highly-liquid investments that generally have maturities of three months or less at the date of purchase. They are stated at cost, which approximates market. The Companies consider temporary cash investments to be cash equivalents. | |||||||||||||||||
Investments | |||||||||||||||||
Investments consist primarily of the investments of Con Edison’s competitive energy businesses, which are accounted for under the equity method (depending on the subsidiaries’ percentage ownership). Utilities’ investments are recorded at fair value and include the investments of the deferred income plan and the supplemental retirement income plan in trust-owned life insurance assets. | |||||||||||||||||
Pension and Other Postretirement Benefits | |||||||||||||||||
The accounting rules for retirement benefits require an employer to recognize an asset or liability for the overfunded or underfunded status of its pension and other postretirement benefit plans. For a pension plan, the asset or liability is the difference between the fair value of the plan’s assets and the projected benefit obligation. For any other postretirement benefit plan, the asset or liability is the difference between the fair value of the plan’s assets and the accumulated postretirement benefit obligation. The accounting rules generally require employers to recognize all unrecognized prior service costs and credits and unrecognized actuarial gains and losses in accumulated other comprehensive income (OCI), net of tax. Such amounts will be adjusted as they are subsequently recognized as components of net periodic benefit cost or income pursuant to the current recognition and amortization provisions. | |||||||||||||||||
For the Utilities’ pension and other postretirement benefit plans, regulatory accounting treatment is generally applied in accordance with the accounting rules for regulated operations. Unrecognized prior service costs or credits and unrecognized actuarial gains and losses are recorded to regulatory assets or liabilities, rather than OCI. See Notes E and F. | |||||||||||||||||
The net periodic benefit costs are recognized in accordance with the accounting rules for retirement benefits. Investment gains and losses are recognized in expense over a 15-year period and other actuarial gains and losses are recognized in expense over a 10-year period, subject to the deferral provisions in the rate plans. | |||||||||||||||||
In accordance with the Statement of Policy issued by the NYSPSC and its current electric, gas and steam rate plans, CECONY defers for payment to or recovery from customers the difference between such expenses and the amounts for such expenses reflected in rates. Generally, O&R also defers such difference pursuant to its rate plans. See Note B – Regulatory Matters. | |||||||||||||||||
The Companies calculate the expected return on pension and other postretirement benefit plan assets by multiplying the expected rate of return on plan assets by the market-related value (MRV) of plan assets at the beginning of the year, taking into consideration anticipated contributions and benefit payments that are to be made during the year. The accounting rules allow the MRV of plan assets to be either fair value or a calculated value that recognizes changes in fair value in a systematic and rational manner over not more than five years. The Companies use a calculated value when determining the MRV of the plan assets that adjusts for 20 percent of the difference between fair value and expected MRV of plan assets. This calculated value has the effect of stabilizing variability in assets to which the Companies apply the expected return. | |||||||||||||||||
Federal Income Tax | |||||||||||||||||
In accordance with the accounting rules for income taxes, the Companies have recorded an accumulated deferred federal income tax liability for temporary differences between the book and tax basis of assets and liabilities at current tax rates. In accordance with rate plans, the Utilities have recovered amounts from customers for a portion of the tax liability they will pay in the future as a result of the reversal or “turn-around” of these temporary differences. As to the remaining tax liability, in accordance with the accounting rules for regulated operations, the Utilities have established regulatory assets for the net revenue requirements to be recovered from customers for the related future tax expense. See Notes B and L. In 1993, the NYSPSC issued a Policy Statement approving accounting procedures consistent with the accounting rules for income taxes and providing assurances that these future increases in taxes will be recoverable in rates. See Note L. | |||||||||||||||||
Accumulated deferred investment tax credits are amortized ratably over the lives of the related properties and applied as a reduction to future federal income tax expense. | |||||||||||||||||
Con Edison and its subsidiaries file a consolidated federal income tax return. The consolidated income tax liability is allocated to each member of the consolidated group using the separate return method. Each member pays or receives an amount based on its own taxable income or loss in accordance with tax sharing agreements among the members of the consolidated group. Tax loss carryforwards are allocated among members in accordance with consolidated tax return regulations. | |||||||||||||||||
State Income Tax | |||||||||||||||||
Con Edison and its subsidiaries file a combined New York State Corporation Business Franchise Tax Return. Similar to a federal consolidated income tax return, the income of all entities in the combined group is subject to New York State taxation, after adjustments for differences between federal and New York law and apportionment of income among the states in which the company does business. Each member’s share of the New York State tax is based on its own New York State taxable income or loss. | |||||||||||||||||
Research and Development Costs | |||||||||||||||||
Generally research and development costs are charged to operating expenses as incurred. Research and development costs were as follows: | |||||||||||||||||
For the Years Ended December 31, | |||||||||||||||||
(Millions of Dollars) | 2014 | 2013 | 2012 | ||||||||||||||
Con Edison | $ | 22 | $ | 18 | $ | 21 | |||||||||||
CECONY | 20 | 16 | 19 | ||||||||||||||
Reclassification | |||||||||||||||||
Certain prior year amounts have been reclassified to conform with the current year presentation. | |||||||||||||||||
Earnings Per Common Share | |||||||||||||||||
Con Edison presents basic and diluted earnings per share on the face of its consolidated income statement. Basic earnings per share (EPS) are calculated by dividing earnings available to common shareholders (“Net income for common stock” on Con Edison’s consolidated income statement) by the weighted average number of Con Edison common shares outstanding during the period. In the calculation of diluted EPS, weighted average shares outstanding are increased for additional shares that would be outstanding if potentially dilutive securities were converted to common stock. | |||||||||||||||||
Potentially dilutive securities for Con Edison consist of restricted stock units, deferred stock units and stock options for which the average market price of the common shares for the period was greater than the exercise price. See Note M. | |||||||||||||||||
Basic and diluted EPS for Con Edison are calculated as follows: | |||||||||||||||||
For the Years Ended December 31, | |||||||||||||||||
(Millions of Dollars, except per share amounts/Shares in Millions) | 2014 | 2013 | 2012 | ||||||||||||||
Net income for common stock | $ | 1,092 | $ | 1,062 | $ | 1,138 | |||||||||||
Weighted average common shares outstanding – Basic | 292.9 | 292.9 | 292.9 | ||||||||||||||
Add: Incremental shares attributable to effect of potentially dilutive securities | 1.1 | 1.5 | 1.6 | ||||||||||||||
Adjusted weighted average common shares outstanding – Diluted | 294 | 294.4 | 294.5 | ||||||||||||||
Net Income for common stock per common share – basic | $ | 3.73 | $ | 3.62 | $ | 3.88 | |||||||||||
Net Income for common stock per common share – diluted | $ | 3.71 | $ | 3.61 | $ | 3.86 | |||||||||||
The computation of diluted EPS for the years ended December 31, 2014, 2013 and 2012 exclude immaterial amounts of performance share awards that were not included because of their anti-dilutive effect. | |||||||||||||||||
Estimates | |||||||||||||||||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |||||||||||||||||
Changes in Accumulated Other Comprehensive Income by Component | |||||||||||||||||
Changes to accumulated other comprehensive income (OCI) for Con Edison and CECONY are as follows: | |||||||||||||||||
(Millions of Dollars) | Con Edison | CECONY | |||||||||||||||
Accumulated OCI, net of taxes, at December 31, 2012 | $ | (53 | ) | $ | (9 | ) | |||||||||||
OCI before reclassifications, net of tax of $(15) and $(1) for Con Edison and CECONY, respectively | 21 | 2 | |||||||||||||||
Amounts reclassified from accumulated OCI related to pension plan liabilities, net of tax of $(5) and $(1) for Con Edison and CECONY, respectively(a)(b) | 7 | 1 | |||||||||||||||
Total OCI, net of taxes, at December 31, 2013 | 28 | 3 | |||||||||||||||
Accumulated OCI, net of taxes, at December 31, 2013(b) | $ | (25 | ) | $ | (6 | ) | |||||||||||
OCI before reclassifications, net of tax of $18 and $4 for Con Edison and CECONY, respectively | (26 | ) | (6 | ) | |||||||||||||
Amounts reclassified from accumulated OCI related to pension plan liabilities, net of tax of $(4) and $(1) for Con Edison and CECONY, respectively(a)(b) | 6 | 1 | |||||||||||||||
Total OCI, net of taxes, at December 31, 2014 | (20 | ) | (5 | ) | |||||||||||||
Accumulated OCI, net of taxes, at December 31, 2014(b) | $ | (45 | ) | ($ | 11 | ) | |||||||||||
(a) | For the portion of unrecognized pension and other postretirement benefit costs relating to the regulated Utilities, costs are recorded into, and amortized out of, regulatory assets instead of OCI. The net actuarial losses and prior service costs recognized during the period are included in the computation of net periodic pension and other postretirement benefit cost. See Notes E and F. | ||||||||||||||||
(b) | Tax reclassified from accumulated OCI is reported in the income tax expense line item of the income statement. | ||||||||||||||||
CECONY [Member] | |||||||||||||||||
Summary of Significant Accounting Policies | Note A – Summary of Significant Accounting Policies | ||||||||||||||||
Principles of Consolidation | |||||||||||||||||
The Companies’ consolidated financial statements include the accounts of their respective majority-owned subsidiaries, and variable interest entities (see Note Q), as required. All intercompany balances and transactions have been eliminated. | |||||||||||||||||
Accounting Policies | |||||||||||||||||
The accounting policies of Con Edison and its subsidiaries conform to generally accepted accounting principles in the United States of America (GAAP). For the Utilities, these accounting principles include the accounting rules for regulated operations and the accounting requirements of the Federal Energy Regulatory Commission (FERC) and the state regulators having jurisdiction. | |||||||||||||||||
The accounting rules for regulated operations specify the economic effects that result from the causal relationship of costs and revenues in the rate-regulated environment and how these effects are to be accounted for by a regulated enterprise. Revenues intended to cover some costs may be recorded either before or after the costs are incurred. If regulation provides assurance that incurred costs will be recovered in the future, these costs would be recorded as deferred charges or “regulatory assets” under the accounting rules for regulated operations. If revenues are recorded for costs that are expected to be incurred in the future, these revenues would be recorded as deferred credits or “regulatory liabilities” under the accounting rules for regulated operations. | |||||||||||||||||
The Utilities’ principal regulatory assets and liabilities are detailed in Note B. The Utilities are receiving or being credited with a return on all of their regulatory assets for which a cash outflow has been made, and are paying or being charged with a return on all of their regulatory liabilities for which a cash inflow has been received. The Utilities’ regulatory assets and liabilities will be recovered from customers, or applied for customer benefit, in accordance with rate provisions approved by the applicable state regulators. | |||||||||||||||||
Other significant accounting policies of the Companies are referenced below in this Note A and in the notes that follow. | |||||||||||||||||
Plant and Depreciation | |||||||||||||||||
Utility Plant | |||||||||||||||||
Utility plant is stated at original cost. The cost of repairs and maintenance is charged to expense and the cost of betterments is capitalized. The capitalized cost of additions to utility plant includes indirect costs such as engineering, supervision, payroll taxes, pensions, other benefits and an allowance for funds used during construction (AFUDC). The original cost of property is charged to expense over the estimated useful lives of the assets. Upon retirement, the original cost of property is charged to accumulated depreciation. See Note R. | |||||||||||||||||
Rates used for AFUDC include the cost of borrowed funds and a reasonable rate of return on the Utilities’ own funds when so used, determined in accordance with regulations of the FERC or the state public utility regulatory authority having jurisdiction. The rate is compounded semiannually, and the amounts applicable to borrowed funds are treated as a reduction of interest charges, while the amounts applicable to the Utilities’ own funds are credited to other income (deductions). The AFUDC rates for CECONY were 1.6 percent, 4.0 percent and 6.5 percent for 2014, 2013 and 2012, respectively. The AFUDC rates for O&R were 2.6 percent, 5.7 percent and 7.0 percent for 2014, 2013 and 2012, respectively. | |||||||||||||||||
The Utilities generally compute annual charges for depreciation using the straight-line method for financial statement purposes, with rates based on average service lives and net salvage factors. The average depreciation rates for CECONY were 3.1 percent, 3.2 percent and 3.1 percent for 2014, 2013 and 2012, respectively. The average depreciation rates for O&R were 2.9 percent, 2.8 percent and 2.9 percent for 2014, 2013 and 2012, respectively. | |||||||||||||||||
The estimated lives for utility plant for CECONY range from 5 to 85 years for electric and gas, 5 to 80 years for steam and 5 to 55 years for general plant. For O&R, the estimated lives for utility plant range from 5 to 75 years for electric and gas and 5 to 50 years for general plant. | |||||||||||||||||
At December 31, 2014 and 2013, the capitalized cost of the Companies’ utility plant, net of accumulated depreciation, was as follows: | |||||||||||||||||
Con Edison | CECONY | ||||||||||||||||
(Millions of Dollars) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Electric | |||||||||||||||||
Generation | $ | 451 | $ | 452 | $ | 451 | $ | 452 | |||||||||
Transmission | 2,956 | 2,776 | 2,744 | 2,597 | |||||||||||||
Distribution | 16,361 | 15,277 | 15,531 | 14,496 | |||||||||||||
Gas* | 5,006 | 4,469 | 4,530 | 4,013 | |||||||||||||
Steam | 1,795 | 1,790 | 1,795 | 1,790 | |||||||||||||
General | 1,650 | 1,565 | 1,498 | 1,433 | |||||||||||||
Held for future use | 76 | 73 | 65 | 62 | |||||||||||||
Construction work in progress | 1,031 | 1,393 | 971 | 1,303 | |||||||||||||
Net Utility Plant | $ | 29,326 | $ | 27,795 | $ | 27,585 | $ | 26,146 | |||||||||
* | Primarily distribution. | ||||||||||||||||
Under the Utilities’ rate plans, the aggregate annual depreciation allowance in effect at December 31, 2014 was $1,048 million, including $993 million under CECONY’s electric, gas and steam rate plans that have been approved by the New York State Public Service Commission (NYSPSC). | |||||||||||||||||
Non-Utility Plant | |||||||||||||||||
Non-utility plant is stated at original cost. For Con Edison, non-utility plant consists primarily of the competitive energy businesses’ renewable electric production and gas storage. For the Utilities, non-utility plant consists of land and conduit for telecommunication use. Depreciation on these assets is computed using the straight-line method for financial statement purposes over their estimated useful lives, which range from 3 to 30 years. | |||||||||||||||||
Goodwill | |||||||||||||||||
Con Edison tests goodwill for impairment at least annually. Goodwill is tested for impairment using a two-step approach. The first step of the goodwill impairment test compares the estimated fair value of a reporting unit with its carrying value, including goodwill. If the estimated fair value of a reporting unit exceeds its carrying value, goodwill of the reporting unit is considered not impaired. If the carrying value exceeds the estimated fair value of the reporting unit, the second step is performed to measure the amount of impairment loss, if any. The second step requires a calculation of the implied fair value of goodwill. See Note K. | |||||||||||||||||
Impairments | |||||||||||||||||
Con Edison evaluates the impairment of long-lived assets, based on projections of undiscounted future cash flows, whenever events or changes in circumstances indicate that the carrying amounts of such assets may not be recoverable. In the event an evaluation indicates that such cash flows cannot be expected to be sufficient to fully recover the assets, the assets are written down to their estimated fair value. No impairment charges were recognized in 2014, 2013 or 2012. | |||||||||||||||||
Revenues | |||||||||||||||||
The Utilities and Con Edison Solutions recognize revenues for energy service on a monthly billing cycle basis. The Utilities defer over a 12-month period net interruptible gas revenues, other than those authorized by the NYSPSC to be retained by the Utilities, for refund to firm gas sales and transportation customers. The Utilities and Con Edison Solutions accrue revenues at the end of each month for estimated energy service not yet billed to customers. | |||||||||||||||||
CECONY’s electric and gas rate plans and O&R’s New York electric and gas rate plans each contain a revenue decoupling mechanism under which the company’s actual energy delivery revenues are compared with the authorized delivery revenues and the difference accrued, with interest, for refund to, or recovery from, customers, as applicable. See “Rate Plans” in Note B. | |||||||||||||||||
The NYSPSC requires utilities to record gross receipts tax revenues and expenses on a gross income statement presentation basis (i.e., included in both revenue and expense). The recovery of these taxes is generally provided for in the revenue requirement within each of the respective NYSPSC approved rate plans. Total excise taxes (inclusive of gross receipts taxes) recorded in operating revenues were as follows: | |||||||||||||||||
For the Years Ended December 31, | |||||||||||||||||
(Millions of Dollars) | 2014 | 2013 | 2012 | ||||||||||||||
Con Edison | $ | 365 | $ | 354 | $ | 334 | |||||||||||
CECONY | 343 | 329 | 306 | ||||||||||||||
Recoverable Energy Costs | |||||||||||||||||
The Utilities generally recover all of their prudently incurred fuel, purchased power and gas costs, including hedging gains and losses, in accordance with rate provisions approved by the applicable state public utility regulators. If the actual energy supply costs for a given month are more or less than the amounts billed to customers for that month, the difference in most cases is recoverable from or refundable to customers. Differences between actual and billed electric and steam supply costs and costs of its electric demand management programs are generally deferred for charge or refund to customers during the next billing cycle (normally within one or two months). For the Utilities’ gas costs, differences between actual and billed gas costs during the 12-month period ending each August are charged or refunded to customers during a subsequent 12-month period. | |||||||||||||||||
New York Independent System Operator (NYISO) | |||||||||||||||||
The Utilities purchase electricity through the wholesale electricity market administered by the NYISO. The difference between purchased power and related costs initially billed to the Utilities by the NYISO and the actual cost of power subsequently calculated by the NYISO is refunded by the NYISO to the Utilities, or paid to the NYISO by the Utilities. The reconciliation payments or receipts are recoverable from or refundable to the Utilities’ customers. | |||||||||||||||||
Certain other payments to or receipts from the NYISO are also subject to reconciliation, with shortfalls or amounts in excess of specified rate allowances recoverable from or refundable to customers. These include proceeds from the sale through the NYISO of transmission rights on CECONY’s transmission system (transmission congestion contracts or TCCs). | |||||||||||||||||
Temporary Cash Investments | |||||||||||||||||
Temporary cash investments are short-term, highly-liquid investments that generally have maturities of three months or less at the date of purchase. They are stated at cost, which approximates market. The Companies consider temporary cash investments to be cash equivalents. | |||||||||||||||||
Investments | |||||||||||||||||
Investments consist primarily of the investments of Con Edison’s competitive energy businesses, which are accounted for under the equity method (depending on the subsidiaries’ percentage ownership). Utilities’ investments are recorded at fair value and include the investments of the deferred income plan and the supplemental retirement income plan in trust-owned life insurance assets. | |||||||||||||||||
Pension and Other Postretirement Benefits | |||||||||||||||||
The accounting rules for retirement benefits require an employer to recognize an asset or liability for the overfunded or underfunded status of its pension and other postretirement benefit plans. For a pension plan, the asset or liability is the difference between the fair value of the plan’s assets and the projected benefit obligation. For any other postretirement benefit plan, the asset or liability is the difference between the fair value of the plan’s assets and the accumulated postretirement benefit obligation. The accounting rules generally require employers to recognize all unrecognized prior service costs and credits and unrecognized actuarial gains and losses in accumulated other comprehensive income (OCI), net of tax. Such amounts will be adjusted as they are subsequently recognized as components of net periodic benefit cost or income pursuant to the current recognition and amortization provisions. | |||||||||||||||||
For the Utilities’ pension and other postretirement benefit plans, regulatory accounting treatment is generally applied in accordance with the accounting rules for regulated operations. Unrecognized prior service costs or credits and unrecognized actuarial gains and losses are recorded to regulatory assets or liabilities, rather than OCI. See Notes E and F. | |||||||||||||||||
The net periodic benefit costs are recognized in accordance with the accounting rules for retirement benefits. Investment gains and losses are recognized in expense over a 15-year period and other actuarial gains and losses are recognized in expense over a 10-year period, subject to the deferral provisions in the rate plans. | |||||||||||||||||
In accordance with the Statement of Policy issued by the NYSPSC and its current electric, gas and steam rate plans, CECONY defers for payment to or recovery from customers the difference between such expenses and the amounts for such expenses reflected in rates. Generally, O&R also defers such difference pursuant to its rate plans. See Note B – Regulatory Matters. | |||||||||||||||||
The Companies calculate the expected return on pension and other postretirement benefit plan assets by multiplying the expected rate of return on plan assets by the market-related value (MRV) of plan assets at the beginning of the year, taking into consideration anticipated contributions and benefit payments that are to be made during the year. The accounting rules allow the MRV of plan assets to be either fair value or a calculated value that recognizes changes in fair value in a systematic and rational manner over not more than five years. The Companies use a calculated value when determining the MRV of the plan assets that adjusts for 20 percent of the difference between fair value and expected MRV of plan assets. This calculated value has the effect of stabilizing variability in assets to which the Companies apply the expected return. | |||||||||||||||||
Federal Income Tax | |||||||||||||||||
In accordance with the accounting rules for income taxes, the Companies have recorded an accumulated deferred federal income tax liability for temporary differences between the book and tax basis of assets and liabilities at current tax rates. In accordance with rate plans, the Utilities have recovered amounts from customers for a portion of the tax liability they will pay in the future as a result of the reversal or “turn-around” of these temporary differences. As to the remaining tax liability, in accordance with the accounting rules for regulated operations, the Utilities have established regulatory assets for the net revenue requirements to be recovered from customers for the related future tax expense. See Notes B and L. In 1993, the NYSPSC issued a Policy Statement approving accounting procedures consistent with the accounting rules for income taxes and providing assurances that these future increases in taxes will be recoverable in rates. See Note L. | |||||||||||||||||
Accumulated deferred investment tax credits are amortized ratably over the lives of the related properties and applied as a reduction to future federal income tax expense. | |||||||||||||||||
Con Edison and its subsidiaries file a consolidated federal income tax return. The consolidated income tax liability is allocated to each member of the consolidated group using the separate return method. Each member pays or receives an amount based on its own taxable income or loss in accordance with tax sharing agreements among the members of the consolidated group. Tax loss carryforwards are allocated among members in accordance with consolidated tax return regulations. | |||||||||||||||||
State Income Tax | |||||||||||||||||
Con Edison and its subsidiaries file a combined New York State Corporation Business Franchise Tax Return. Similar to a federal consolidated income tax return, the income of all entities in the combined group is subject to New York State taxation, after adjustments for differences between federal and New York law and apportionment of income among the states in which the company does business. Each member’s share of the New York State tax is based on its own New York State taxable income or loss. | |||||||||||||||||
Research and Development Costs | |||||||||||||||||
Generally research and development costs are charged to operating expenses as incurred. Research and development costs were as follows: | |||||||||||||||||
For the Years Ended December 31, | |||||||||||||||||
(Millions of Dollars) | 2014 | 2013 | 2012 | ||||||||||||||
Con Edison | $ | 22 | $ | 18 | $ | 21 | |||||||||||
CECONY | 20 | 16 | 19 | ||||||||||||||
Reclassification | |||||||||||||||||
Certain prior year amounts have been reclassified to conform with the current year presentation. | |||||||||||||||||
Earnings Per Common Share | |||||||||||||||||
Con Edison presents basic and diluted earnings per share on the face of its consolidated income statement. Basic earnings per share (EPS) are calculated by dividing earnings available to common shareholders (“Net income for common stock” on Con Edison’s consolidated income statement) by the weighted average number of Con Edison common shares outstanding during the period. In the calculation of diluted EPS, weighted average shares outstanding are increased for additional shares that would be outstanding if potentially dilutive securities were converted to common stock. | |||||||||||||||||
Potentially dilutive securities for Con Edison consist of restricted stock units, deferred stock units and stock options for which the average market price of the common shares for the period was greater than the exercise price. See Note M. | |||||||||||||||||
Basic and diluted EPS for Con Edison are calculated as follows: | |||||||||||||||||
For the Years Ended December 31, | |||||||||||||||||
(Millions of Dollars, except per share amounts/Shares in Millions) | 2014 | 2013 | 2012 | ||||||||||||||
Net income for common stock | $ | 1,092 | $ | 1,062 | $ | 1,138 | |||||||||||
Weighted average common shares outstanding – Basic | 292.9 | 292.9 | 292.9 | ||||||||||||||
Add: Incremental shares attributable to effect of potentially dilutive securities | 1.1 | 1.5 | 1.6 | ||||||||||||||
Adjusted weighted average common shares outstanding – Diluted | 294 | 294.4 | 294.5 | ||||||||||||||
Net Income for common stock per common share – basic | $ | 3.73 | $ | 3.62 | $ | 3.88 | |||||||||||
Net Income for common stock per common share – diluted | $ | 3.71 | $ | 3.61 | $ | 3.86 | |||||||||||
The computation of diluted EPS for the years ended December 31, 2014, 2013 and 2012 exclude immaterial amounts of performance share awards that were not included because of their anti-dilutive effect. | |||||||||||||||||
Estimates | |||||||||||||||||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |||||||||||||||||
Changes in Accumulated Other Comprehensive Income by Component | |||||||||||||||||
Changes to accumulated other comprehensive income (OCI) for Con Edison and CECONY are as follows: | |||||||||||||||||
(Millions of Dollars) | Con Edison | CECONY | |||||||||||||||
Accumulated OCI, net of taxes, at December 31, 2012 | $ | (53 | ) | $ | (9 | ) | |||||||||||
OCI before reclassifications, net of tax of $(15) and $(1) for Con Edison and CECONY, respectively | 21 | 2 | |||||||||||||||
Amounts reclassified from accumulated OCI related to pension plan liabilities, net of tax of $(5) and $(1) for Con Edison and CECONY, respectively(a)(b) | 7 | 1 | |||||||||||||||
Total OCI, net of taxes, at December 31, 2013 | 28 | 3 | |||||||||||||||
Accumulated OCI, net of taxes, at December 31, 2013(b) | $ | (25 | ) | $ | (6 | ) | |||||||||||
OCI before reclassifications, net of tax of $18 and $4 for Con Edison and CECONY, respectively | (26 | ) | (6 | ) | |||||||||||||
Amounts reclassified from accumulated OCI related to pension plan liabilities, net of tax of $(4) and $(1) for Con Edison and CECONY, respectively(a)(b) | 6 | 1 | |||||||||||||||
Total OCI, net of taxes, at December 31, 2014 | (20 | ) | (5 | ) | |||||||||||||
Accumulated OCI, net of taxes, at December 31, 2014(b) | $ | (45 | ) | ($ | 11 | ) | |||||||||||
(a) | For the portion of unrecognized pension and other postretirement benefit costs relating to the regulated Utilities, costs are recorded into, and amortized out of, regulatory assets instead of OCI. The net actuarial losses and prior service costs recognized during the period are included in the computation of net periodic pension and other postretirement benefit cost. See Notes E and F. | ||||||||||||||||
(b) | Tax reclassified from accumulated OCI is reported in the income tax expense line item of the income statement. |
Regulatory_Matters
Regulatory Matters | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Regulatory Matters | Note B – Regulatory Matters | ||||||||||||||||
Rate Plans | |||||||||||||||||
The Utilities provide service to New York customers according to the terms of tariffs approved by the NYSPSC. Tariffs for service to customers of O&R’s New Jersey and Pennsylvania regulated utility subsidiaries are approved by utility regulators in those states. The tariffs include schedules of rates for service that limit the rates charged by the Utilities to amounts that 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’ 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. Utilities generally retain the right to petition for recovery or accounting deferral of extraordinary and material cost increases for items such as major storm events 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. | |||||||||||||||||
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. | |||||||||||||||||
Rate base is, in general, the sum of the Utilities’ net plant and working capital less deferred taxes. 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”). The New Jersey Board of Public Utilities (NJBPU) and the Pennsylvania Public Utility Commission (PAPUC) use the rate base balances that would exist at the beginning of the 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 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 is determined by multiplying the Utilities’ rate base by the utility’s 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 | April 2010 – December 2013 | January 2014 – December 2015 | |||||||||||||||
Base rate changes(a) | Yr. 1 – $420 million | Yr. 1 – $(76.2) million(c) | |||||||||||||||
Yr. 2 – $420 million | Yr. 2 – $124.0 million(c) | ||||||||||||||||
Yr. 3 – $287 million(b) | |||||||||||||||||
Amortizations to income of net | $(75.3) million over three years | $(37) million over two years, that includes $107 million annually for deferred major storm costs | |||||||||||||||
regulatory (assets) and liabilities | |||||||||||||||||
Other revenue sources | Retention of $120 million of annual transmission congestion revenues from the sale of transmission rights ($90 million for the period April 1, 2013 to December 31, 2013). | Retention of $90 million of annual transmission congestion revenues. | |||||||||||||||
Revenue decoupling mechanisms | In 2012 and 2013, the company deferred for customer benefit $59 million and $34 million of revenues, respectively. | In 2014, the company deferred for customer benefit $146 million of revenues. | |||||||||||||||
Recoverable energy costs | Current rate recovery of purchased power and fuel costs. | Continuation of current rate recovery of purchased power and fuel costs(d). | |||||||||||||||
Negative revenue adjustments | Potential penalties (up to $350 million annually) if certain performance targets are not met. In 2012 and 2013, the company did not record any negative revenue adjustments. | Potential penalties (up to $400 million annually) if certain performance targets are not met. In 2014, the company recorded a $5 million negative revenue adjustment. | |||||||||||||||
Cost reconciliations(e) | In 2012 and 2013, the company deferred $146 million of net regulatory liabilities and $35 million of net regulatory assets, respectively. | In 2014, the company deferred $57 million of net regulatory liabilities. | |||||||||||||||
Net utility plant reconciliations | Target levels reflected in rates were: | Target levels reflected in rates were: | |||||||||||||||
Transmission and distribution: Yr. 1 –$13,818 million; Yr. 2 – $14,742 million; | Transmission and distribution: Yr. 1 – $16,869 million; Yr. 2 – $17,401 million | ||||||||||||||||
Yr. 3 – $15,414 million | Storm hardening: Yr. 1 – $89 million; Yr. 2 – $177 million | ||||||||||||||||
Enterprise resource project: Yr. 2 – $25 million; | Other: Yr. 1 – $2,034 million; Yr. 2 – $2,102 million | ||||||||||||||||
Yr. 3 -$115 million | The company deferred an immaterial amount as a regulatory liability in 2014. | ||||||||||||||||
Other: Yr. 1 – $1,487 million; | |||||||||||||||||
Yr. 2 – $1,565 million; Yr. 3 – $1,650 million | |||||||||||||||||
The company deferred an immaterial amount and $7 million as a regulatory liability in 2012 and 2013, respectively. | |||||||||||||||||
Average rate base | Yr. 1 – $14,887 million | Yr. 1 – $17,323 million | |||||||||||||||
Yr. 2 – $15,987 million | Yr. 2 – $18,113 million | ||||||||||||||||
Yr. 3 – $16,826 million | |||||||||||||||||
Weighted average cost of capital (after-tax) | 7.76 percent | Yr. 1 – 7.05 percent | |||||||||||||||
Yr. 2 – 7.08 percent | |||||||||||||||||
Authorized return on common equity | 10.15 percent assuming the company achieved austerity measures of $27 million, $20 million and $13 million for Yrs. 1, 2 and 3. Austerity measures were achieved. | 9.2 percent | |||||||||||||||
Earnings sharing | Actual earnings above an annual earnings threshold of 11.15 percent for Yr. 1 and 10.65 percent for Yrs. 2 and 3 were to be applied to reduce regulatory assets for pensions and other postretirement benefits and other costs. | Most earnings above an annual earnings threshold of 9.8 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 $17.5 million above the threshold for the period ended 2013. | |||||||||||||||||
Cost of long-term debt | 5.65 percent | Yr. 1 – 5.17 percent | |||||||||||||||
Yr. 2 – 5.23 percent | |||||||||||||||||
Common equity ratio | 48 percent | 48 percent | |||||||||||||||
(a) | $249 million of annual revenues collected from electric customers is subject to potential refund following NYSPSC staff review of costs. See “Other Regulatory Matters” below in this Note B. Revenues for each of 2014 and 2015 include $21 million as funding for major storm reserve. | ||||||||||||||||
(b) | Temporary portion of the increase ($134 million) that was scheduled to go into effect April 1, 2012 was eliminated by the application of available credits. | ||||||||||||||||
(c) | The impact of these base rate changes is being deferred which will result in a $30 million regulatory liability at December 31, 2015. | ||||||||||||||||
(d) | With respect to transmission service provided pursuant to the open access transmission tariff of PJM Interconnection L.L.C. (PJM), the company recovered in 2014 part of charges incurred during 2013 (approximately $20 million) and, commencing in January 2014 and unless and until changed by the NYSPSC, the company will recover all charges incurred associated with the transmission service. In January 2014, PJM submitted to FERC a request that would substantially increase the charges for the transmission service. CECONY has opposed this increase. | ||||||||||||||||
(e) | Deferrals for property taxes were limited to 80 percent (90 percent beginning 2014) 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. | ||||||||||||||||
In January 2015, CECONY filed a request with the NYSPSC for an electric rate increase of $368 million, effective January 2016. The filing reflects a return on common equity of 10 percent and a common equity ratio of approximately 48 percent. | |||||||||||||||||
The company also is requesting continuation of provisions pursuant to which expenses for pension and other postretirement benefits, variable rate, tax-exempt debt, storms, the impact of new laws and environmental site investigation and remediation are reconciled to amounts reflected in rates. In addition, the company is requesting reconciliation of property taxes and municipal infrastructure support costs that, unlike the current provisions, would provide for full reconciliation of such costs. The filing also reflects continuation of the revenue decoupling mechanism and provisions for recovery of purchased power and fuel costs from customers. | |||||||||||||||||
CECONY – Gas | |||||||||||||||||
Effective period | October 2010 – December 2013 | January 2014 – December 2016 | |||||||||||||||
Base rate changes(a) | Yr. 1 – $47 million | Yr. 1 – $(54.6) million(b) | |||||||||||||||
Yr. 2 – $48 million | Yr. 2 – $38.6 million(b) | ||||||||||||||||
Yr. 3 – $47 million | Yr. 3 – $56.8 million(b) | ||||||||||||||||
Amortizations to income of net | $(53.1) million over three years | $4 million over three years | |||||||||||||||
regulatory (assets) and liabilities | |||||||||||||||||
Other revenue sources | Retention of revenues from non-firm customers of up to $58 million and 25 percent of any such revenues above $58 million. The company retained $57 million and $64 million of such revenues in 2012 and 2013, respectively. | Retention of revenues from non-firm customers of up to $65 million and 15 percent of any such revenues above $65 million. The company retained $70 million of such revenues in 2014. | |||||||||||||||
Revenue decoupling mechanisms | In 2012 and 2013, the company deferred $22 million and $36 million of regulatory liabilities, respectively. | In 2014, the company deferred $28 million of regulatory liabilities. | |||||||||||||||
Recoverable energy costs | Current rate recovery of purchased gas costs. | Continuation of current rate recovery of purchased gas costs. | |||||||||||||||
Negative revenue adjustments | Potential penalties (up to $12.6 million annually) | Potential penalties (up to $33 million in 2014, $44 million in 2015, and $56 million in 2016) if certain gas performance targets are not met. In 2014, the company did not record any negative revenue adjustments. | |||||||||||||||
if certain gas customer service and system performance targets are not met. In 2012 and 2013, the company did not record any negative revenue adjustments. | |||||||||||||||||
Cost reconciliations(c) | In 2012 and 2013, the company deferred $9 million and $26 million of net regulatory assets, respectively. | In 2014, the company deferred $38 million of net regulatory liabilities. | |||||||||||||||
Net utility plant reconciliations | Target levels reflected in rates were: | Target levels reflected in rates were: | |||||||||||||||
Gas delivery Yr. 1 – $2,934 million; | Gas delivery Yr. 1 – $3,899 million; | ||||||||||||||||
Yr. 2 – $3,148 million; Yr. 3 – $3,346 million | Yr. 2 – $4,258 million; Yr. 3 – $4,698 million | ||||||||||||||||
For 2012 and 2013, $2.9 million and $9.5 million were deferred as a regulatory liability respectively. | Storm hardening: Yr. 1 – $3 million; | ||||||||||||||||
Yr. 2 – $8 million; Yr. 3 – $30 million | |||||||||||||||||
There were no deferrals recorded in 2014. | |||||||||||||||||
Average rate base | Yr. 1 – $3,027 million | Yr. 1 – $3,521 million | |||||||||||||||
Yr. 2 – $3,245 million | Yr. 2 – $3,863 million | ||||||||||||||||
Yr. 3 – $3,434 million | Yr. 3 – $4,236 million | ||||||||||||||||
Weighted average cost of capital | 7.46 percent | Yr. 1 – 7.10 percent | |||||||||||||||
(after-tax) | Yr. 2 – 7.13 percent | ||||||||||||||||
Yr. 3 – 7.21 percent | |||||||||||||||||
Authorized return on common equity | 9.6 percent assuming the company achieved unspecified austerity measures of $4 million and $2 million in 2012 and 2013. Austerity measures were achieved. | 9.3 percent | |||||||||||||||
Earnings sharing | Actual earnings did not exceed the thresholds of 10.35 percent in Yr. 1 and 10.15 percent in Yrs. 2 and 3. | Most 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. | |||||||||||||||
Cost of long-term debt | 5.57 percent | Yr. 1 – 5.17 percent | |||||||||||||||
Yr. 2 – 5.23 percent | |||||||||||||||||
Yr. 3 – 5.39 percent | |||||||||||||||||
Common equity ratio | 48 percent | 48 percent | |||||||||||||||
(a) | $32 million of annual revenues collected from gas customers is subject to potential refund. See “Other Regulatory Matters” below. | ||||||||||||||||
(b) | The impact of these base rate changes is being deferred which will result in a $32 million regulatory liability at December 31, 2016. | ||||||||||||||||
(c) | Deferrals for property taxes were limited to 80 percent (90 percent beginning 2014) 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. | ||||||||||||||||
CECONY – Steam | |||||||||||||||||
Effective period | October 2010 – December 2013 | January 2014 – December 2016 | |||||||||||||||
Base rate changes(a) | Yr. 1 – $49.5 million | Yr. 1 – $(22.4) million(b) | |||||||||||||||
Yr. 2 – $49.5 million | Yr. 2 – $19.8 million(b) | ||||||||||||||||
Yr. 3 – $17.8 million | Yr. 3 – $20.3 million(b) | ||||||||||||||||
Yr. 3 – $31.7 million collected through a surcharge | |||||||||||||||||
Amortizations to income of net | $(20.1) million over three years | $37 million over three years | |||||||||||||||
regulatory (assets) and liabilities | |||||||||||||||||
Recoverable energy costs | Current rate recovery of purchased power and fuel costs. | Continuation of current rate recovery of purchased power and fuel costs. | |||||||||||||||
Negative revenue adjustments | Potential penalties (up to $1 million annually) if certain steam performance targets are not met. In 2012 and 2013, the company did not record any negative revenue adjustments. | Potential penalties (up to $1 million annually) if certain steam performance targets are not met. In 2014, the company did not record any negative revenue adjustments. | |||||||||||||||
Cost reconciliations(c) | In 2012 and 2013, the company deferred $12 million and $17 million of net regulatory liabilities, respectively. | In 2014, the company deferred $42 million of net regulatory liabilities. | |||||||||||||||
Net utility plant reconciliations | Target levels reflected in rates were: | Target levels reflected in rates were: | |||||||||||||||
Production Yr. 1 – $415 million; | Production Yr. 1 – $1,752 million; | ||||||||||||||||
Yr. 2 – $426 million; Yr. 3 – $433 million | Yr. 2 – $1,732 million; Yr. 3 – $1,720 million | ||||||||||||||||
Distribution: Yr. 1 – $521 million; Yr. 2 – $534 million; Yr. 3 – $543 million | Distribution: Yr. 1 – $6 million; Yr. 2 – $11 million; Yr. 3 – $25 million | ||||||||||||||||
The company reduced its regulatory liability by $0.2 million in 2012 and made no deferral in 2013. | The company reduced its regulatory liability by $1.1 million in 2014. | ||||||||||||||||
Average rate base | Yr. 1 – $1,589 million | Yr. 1 – $1,511 million | |||||||||||||||
Yr. 2 – $1,603 million | Yr. 2 – $1,547 million | ||||||||||||||||
Yr. 3 – $1,613 million | Yr. 3 – $1,604 million | ||||||||||||||||
Weighted average cost of | 7.46 percent | Yr. 1 – 7.10 percent | |||||||||||||||
capital (after-tax) | Yr. 2 – 7.13 percent | ||||||||||||||||
Yr. 3 – 7.21 percent | |||||||||||||||||
Authorized return on common equity | 9.6 percent (assuming company achieved unspecified austerity measures of $3 million and $2 million in 2012 and 2013). Austerity measures were achieved. | 9.3 percent | |||||||||||||||
Earnings sharing | Weather normalized earnings did not exceed the threshold of 10.35 percent in Yr. 1 and 10.15 percent in Yrs. 2 and 3. In 2013, actual earnings were $0.5 million above the earnings threshold of 10.15 percent. | 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. | |||||||||||||||
Cost of long-term debt | 5.57 percent | Yr. 1 – 5.17 percent | |||||||||||||||
Yr. 2 – 5.23 percent | |||||||||||||||||
Yr. 3 – 5.39 percent | |||||||||||||||||
Common equity ratio | 48 percent | 48 percent | |||||||||||||||
(a) | $6 million of annual revenues collected from steam customers is subject to potential refund. See “Other Regulatory Matters” below in this Note B. | ||||||||||||||||
(b) | The impact of these base rate changes is being deferred which will result in an $8 million regulatory liability at December 31, 2016. | ||||||||||||||||
(c) | Deferrals for property taxes were limited to 80 percent (90 percent beginning 2014) 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. | ||||||||||||||||
O&R New York – Electric | |||||||||||||||||
Effective period | July 2012 – June 2015 | ||||||||||||||||
Base rate changes | Yr. 1 – $19.4 million | ||||||||||||||||
Yr. 2 – $8.8 million | |||||||||||||||||
Yr. 3 – $15.2 million | |||||||||||||||||
Amortizations to income of net | $(32.2) million over three years | ||||||||||||||||
regulatory (assets) and liabilities | |||||||||||||||||
Revenue decoupling mechanisms | In 2012, 2013 and 2014, the company deferred for the customer’s benefit $2.6 million, $3.2 million and ($3.4) million. | ||||||||||||||||
Recoverable energy costs | Current rate recovery of purchased power and fuel costs. | ||||||||||||||||
Negative revenue adjustments | Potential penalties (up to $3 million annually) if certain customer service and system reliability performance targets are not met. In 2012, 2013 and 2014, the company did not record any negative revenue adjustments. | ||||||||||||||||
Cost reconciliations | In 2012, 2013 and 2014, the company deferred $7.8 million, $4.1 million and $(0.2) million as a net increase to regulatory assets, respectively. | ||||||||||||||||
Net utility plant reconciliations | Target levels reflected in rates were: | ||||||||||||||||
Yr. 1 – $678 million; Yr. 2- $704 million; Yr. 3 – $753 million | |||||||||||||||||
The company increased its regulatory liability by $4.2 million in 2012. The company reduced its regulatory, liability by $1.1 million and $2.3 million in 2013 and 2014, respectively. | |||||||||||||||||
Average rate base | Yr. 1 – $671 million | ||||||||||||||||
Yr. 2 – $708 million | |||||||||||||||||
Yr. 3 – $759 million | |||||||||||||||||
Weighted average cost of capital (after-tax) | Yr. 1 – 7.61 percent | ||||||||||||||||
Yr. 2 – 7.65 percent | |||||||||||||||||
Yr. 3 – 7.48 percent | |||||||||||||||||
Authorized return on common equity | Yr. 1 – 9.4 percent | ||||||||||||||||
Yr. 2 – 9.5 percent | |||||||||||||||||
Yr. 3 – 9.6 percent | |||||||||||||||||
Earnings sharing | The company recorded a regulatory liability of $1 million for earnings above the sharing threshold under the rate plan as of December 31, 2014. | ||||||||||||||||
Cost of long-term debt | Yr. 1 – 6.07 percent | ||||||||||||||||
Yr. 2 – 6.07 percent | |||||||||||||||||
Yr. 3 – 5.64 percent | |||||||||||||||||
Common equity ratio | 48 percent | ||||||||||||||||
On November 14, 2014, O&R filed a request with the NYSPSC for an increase in the rates it charges for electric service rendered in New York, effective November 1, 2015, of $33.4 million. The filing reflects a return on common equity of 9.75 percent and a common equity ratio of 48 percent. The filing proposes continuation of the current provisions with respect to recovery from customers of the cost of purchased power, and the reconciliation of actual expenses allocable to the electric business to the amounts for such costs reflected in electric rates for storm costs, pension and other postretirement benefit costs, environmental remediation and property taxes. | |||||||||||||||||
O&R New York – Gas | |||||||||||||||||
Effective period | November 2009 – December 2014 | ||||||||||||||||
Base rate changes | Yr. 1 – $9 million | ||||||||||||||||
Yr. 2 – $9 million | |||||||||||||||||
Yr. 3 – $4.6 million | |||||||||||||||||
Yr. 3 – $4.3 million collected through a surcharge | |||||||||||||||||
Amortization to income of net regulatory (assets) and liabilities | $(2) million over three years | ||||||||||||||||
Revenue decoupling mechanisms | In 2012, 2013 and 2014, the company deferred $4.7 million, $0.7 million and $(0.1) million of regulatory liabilities, respectively. | ||||||||||||||||
Recoverable energy costs | Current rate recovery of purchased gas costs. | ||||||||||||||||
Negative revenue adjustments | Potential penalties (up to $1.4 million annually) if certain operations and customer service requirements are not met. In 2012, 2013 and 2014, the company did not record any negative revenue adjustments. | ||||||||||||||||
Cost reconciliations | In 2012, 2013 and 2014, the company deferred $0.7 million, $8.3 million and $8.3 million as net regulatory assets, respectively. | ||||||||||||||||
Net utility plant reconciliations | The company deferred $0.7 million in 2012 as a regulatory asset and no deferrals were recorded for 2013 or 2014. | ||||||||||||||||
Average rate base | Yr. 1 – $280 million | ||||||||||||||||
Yr. 2 – $296 million | |||||||||||||||||
Yr. 3 – $309 million | |||||||||||||||||
Weighted average cost of capital (after-tax) | 8.49 percent | ||||||||||||||||
Authorized return on common equity | 10.4 percent | ||||||||||||||||
Earnings sharing | Earnings above an annual earnings threshold of 11.4 percent are to be applied to reduce regulatory assets. In 2012, 2013 and 2014, earnings did not exceed the earnings threshold. | ||||||||||||||||
Cost of long-term debt | 6.81 percent | ||||||||||||||||
Common equity ratio | 48 percent | ||||||||||||||||
On November 14, 2014, O&R filed a request with the NYSPSC for an increase in the rates it charges for gas service rendered in New York, effective November 1, 2015, of $40.7 million. The filing reflects a return on common equity of 9.75 percent and a common equity ratio of 48 percent. The filing proposes continuation of the current provisions with respect to recovery from customers of the cost of purchased gas, and the reconciliation of actual expenses allocable to the gas business to the amounts for such costs reflected in gas rates for pension and other postretirement benefit costs, environmental remediation and property taxes. | |||||||||||||||||
Rockland Electric Company (RECO) | |||||||||||||||||
Effective period | May 2010 – July 2014 | August 2014 – July 2015 | |||||||||||||||
Base rate changes | Yr. 1 – $9.8 million | Yr. 1 – $13.0 million | |||||||||||||||
Amortization to income of net | $(3.9) million over four years and $(4.9) million of deferred storm costs over five years | $0.4 million over three years and $(25.6) million of deferred storm costs over four years | |||||||||||||||
regulatory (assets) and liabilities | |||||||||||||||||
Recoverable energy costs | Current rate recovery of purchased power costs. | Continuation of current rate recovery of purchased power costs. | |||||||||||||||
Cost reconciliations | None | None | |||||||||||||||
Average rate base | $148.6 million | $172.2 million | |||||||||||||||
Weighted average cost of capital | 8.21 percent | 7.83 percent | |||||||||||||||
(after-tax) | |||||||||||||||||
Authorized return on common equity | 10.3 percent | 9.75 percent | |||||||||||||||
Cost of long-term debt | 6.16 percent | 5.89 percent | |||||||||||||||
Common equity ratio | 50 percent | 50 percent | |||||||||||||||
Pike County Light & Power Company (Pike) – Electric | |||||||||||||||||
Effective period | April 2009 – August 2014 | September 2014 – August 2015 | |||||||||||||||
Base rate changes(a) | Yr. 1 – $0.9 million | Yr. 1 – $1.25 million | |||||||||||||||
Amortization to income of net regulatory (assets) and liabilities | $0.1 million over 5 years | $(0.7) million of deferred storm costs over five years | |||||||||||||||
Cost reconciliations | True-up of Other Postretirement Benefits costs. The company deferred an immaterial amount as regulatory liabilities in 2012 and 2013. | True-up of Other Postretirement Benefits costs. The company deferred an immaterial amount as a regulatory liability in 2014. | |||||||||||||||
(a) | Under the current plan, the earliest that the company can file for a new base rate change is September 1, 2016. | ||||||||||||||||
Pike – Gas | |||||||||||||||||
Effective period | April 2009 – August 2014 | September 2014 – August 2015 | |||||||||||||||
Base Rate changes(a) | Yr. 1 – $0.3 million | Yr. 1 – $0.1 million | |||||||||||||||
Amortization to income of net regulatory (assets) and liabilities | None | None | |||||||||||||||
Cost reconciliations | True-up of Other Postretirement Benefits costs. The company deferred an immaterial amount as regulatory liabilities in 2012 and 2013. | True-up of Other Postretirement Benefits costs. The company deferred an immaterial amount as a regulatory liability in 2014. | |||||||||||||||
(a) | Under the current plan, the earliest that the company can file for a new base rate change is September 1, 2016. | ||||||||||||||||
Other Regulatory Matters | |||||||||||||||||
In February 2009, the NYSPSC commenced a proceeding to examine the prudence of certain CECONY expenditures following the arrests of employees for accepting illegal payments from a construction contractor. Subsequently, additional employees were arrested for accepting illegal payments from materials suppliers and an engineering firm. The arrested employees were terminated by the company and have pled guilty or been convicted. Pursuant to NYSPSC orders, a portion of the company’s revenues (currently, $249 million, $32 million and $6 million on an annual basis for electric, gas and steam service, respectively) is being collected subject to potential refund to customers. The amount of electric revenues collected subject to refund, which was established in a different proceeding, and the amount of gas and steam revenues collected subject to refund were not established as indicative of the company’s potential liability in this proceeding. At December 31, 2014, the company had collected an estimated $1,675 million from customers subject to potential refund in connection with this proceeding. In January 2013, a NYSPSC consultant reported its estimate, with which the company does not agree, of $208 million of overcharges with respect to a substantial portion of the company’s construction expenditures from January 2000 to January 2009. The company is disputing the consultant’s estimate, including its determinations as to overcharges regarding specific construction expenditures it selected to review and its methodology of extrapolating such determinations over a substantial portion of the construction expenditures during this period. The NYSPSC’s consultant has not reviewed the company’s other expenditures. The company and NYSPSC staff are exploring a settlement in this proceeding. There is no assurance that there will be a settlement, and any settlement would be subject to NYSPSC approval. At December 31, 2014, the company had a $105 million regulatory liability relating to this matter. The company currently estimates that any additional amount the NYSPSC requires the company to refund to customers in excess of the regulatory liability accrued could range up to an amount based on the NYSPSC consultant’s $208 million estimate of overcharges. | |||||||||||||||||
In late October 2012, Superstorm Sandy caused extensive damage to the Utilities’ electric distribution system and interrupted service to approximately 1.4 million customers. Superstorm Sandy also damaged CECONY’s steam system and interrupted service to many of its steam customers. As of December 31, 2014, CECONY and O&R incurred response and restoration costs for Superstorm Sandy of $503 million and $91 million, respectively (including capital expenditures of $148 million and $15 million, respectively). Most of the costs that were not capitalized were deferred for recovery as a regulatory asset under the Utilities’ electric rate plans. See “Regulatory Assets and Liabilities” below. CECONY’s current electric rate plan includes collection from customers of deferred storm costs (including for Superstorm Sandy), subject to refund following NYSPSC review of the costs. In November 2014, O&R requested recovery of deferred storm costs for its New York electric operations, which are subject to NYSPSC review. RECO’s current electric rate plan includes collection from customers of deferred storm costs. See “Rate Plans” above. | |||||||||||||||||
In June 2014, the NYSPSC initiated a proceeding to investigate the practices of qualifying persons to perform plastic fusions on gas facilities. New York State regulations require gas utilities to qualify and, except in certain circumstances, annually requalify workers that perform fusion to join plastic pipe. The NYSPSC directed the New York gas utilities to provide information in this proceeding about their compliance with the qualification and requalification requirements and related matters; their procedures for compliance with all gas safety regulations; and their annual chief executive officer certifications regarding these and other procedures. CECONY’s qualification and requalification procedures had not included certain required testing to evaluate specimen fuses. In addition, CECONY and O&R had not timely requalified certain workers that had been qualified under their respective procedures to perform fusion to join plastic pipe. CECONY and O&R have requalified their workers who perform plastic pipe fusions. In October 2014, CECONY and O&R submitted for NYSPSC staff review their plans for testing plastic pipe fusions that were performed on their gas delivery systems, additional leakage surveying and reporting. | |||||||||||||||||
Regulatory Assets and Liabilities | |||||||||||||||||
Regulatory assets and liabilities at December 31, 2014 and 2013 were comprised of the following items: | |||||||||||||||||
Con Edison | CECONY | ||||||||||||||||
(Millions of Dollars) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Regulatory assets | |||||||||||||||||
Unrecognized pension and other postretirement costs | $ | 4,846 | $ | 2,730 | $ | 4,609 | $ | 2,610 | |||||||||
Future income tax | 2,273 | 2,145 | 2,166 | 2,030 | |||||||||||||
Environmental remediation costs | 925 | 938 | 820 | 830 | |||||||||||||
Deferred storm costs | 319 | 441 | 224 | 334 | |||||||||||||
Revenue taxes | 219 | 207 | 208 | 196 | |||||||||||||
Surcharge for New York State assessment | 99 | 78 | 92 | 74 | |||||||||||||
Pension and other postretirement benefits deferrals | 66 | 237 | 42 | 211 | |||||||||||||
Net electric deferrals | 63 | 83 | 63 | 83 | |||||||||||||
Unamortized loss on reacquired debt | 57 | 65 | 55 | 62 | |||||||||||||
O&R property tax reconciliation | 36 | 22 | - | - | |||||||||||||
O&R transition bond charges | 27 | 33 | - | - | |||||||||||||
Preferred stock redemption | 27 | 28 | 27 | 28 | |||||||||||||
Deferred derivative losses – noncurrent | 25 | 8 | 23 | 7 | |||||||||||||
Recoverable energy costs – noncurrent | 19 | 29 | 17 | 28 | |||||||||||||
Workers’ compensation | 8 | 12 | 8 | 12 | |||||||||||||
Other | 147 | 145 | 127 | 134 | |||||||||||||
Regulatory assets – noncurrent | 9,156 | 7,201 | 8,481 | 6,639 | |||||||||||||
Deferred derivative losses – current | 97 | 25 | 92 | 22 | |||||||||||||
Recoverable energy costs – current | 41 | 4 | 40 | 4 | |||||||||||||
Future income tax – current | 10 | - | - | - | |||||||||||||
Regulatory assets – current | 148 | 29 | 132 | 26 | |||||||||||||
Total Regulatory Assets | $ | 9,304 | $ | 7,230 | $ | 8,613 | $ | 6,665 | |||||||||
Regulatory liabilities | |||||||||||||||||
Allowance for cost of removal less salvage | $ | 598 | $ | 540 | $ | 499 | $ | 453 | |||||||||
Property tax reconciliation | 295 | 322 | 295 | 322 | |||||||||||||
2014 rate plan rate base revenue deferrals | 155 | - | 155 | - | |||||||||||||
Net unbilled revenue deferrals | 138 | 133 | 138 | 133 | |||||||||||||
Prudence proceeding | 105 | 40 | 105 | 40 | |||||||||||||
Property tax refunds | 87 | 130 | 87 | 130 | |||||||||||||
Long-term interest rate reconciliation | 78 | 105 | 78 | 105 | |||||||||||||
New York State income tax rate change | 62 | - | 59 | - | |||||||||||||
Carrying charges on repair allowance and bonus depreciation | 58 | 88 | 57 | 87 | |||||||||||||
Pension and other postretirement benefit deferrals | 46 | 50 | 37 | 50 | |||||||||||||
World Trade Center settlement proceeds | 41 | 62 | 41 | 62 | |||||||||||||
Carrying charges on T&D net plant – electric and steam | 21 | 28 | 20 | 20 | |||||||||||||
Electric excess earnings | 19 | 22 | 18 | 18 | |||||||||||||
Other | 290 | 208 | 248 | 178 | |||||||||||||
Regulatory liabilities – noncurrent | 1,993 | 1,728 | 1,837 | 1,598 | |||||||||||||
Refundable energy costs – current | 128 | 100 | 84 | 66 | |||||||||||||
Revenue decoupling mechanism | 30 | 34 | 30 | 30 | |||||||||||||
Future income tax | 24 | - | 24 | - | |||||||||||||
Deferred derivative gains – current | 5 | 14 | 4 | 11 | |||||||||||||
Regulatory liabilities—current | 187 | 148 | 142 | 107 | |||||||||||||
Total Regulatory Liabilities | $ | 2,180 | $ | 1,876 | $ | 1,979 | $ | 1,705 | |||||||||
Unrecognized pension and other postretirement costs represents 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 expenditures, in connection with Superstorm Sandy and other major storms that were deferred by the Utilities. See “Other Regulatory Matters,” above. | |||||||||||||||||
Net electric deferrals represents the remaining unamortized balance of certain regulatory assets and liabilities of CECONY that were combined effective April 1, 2010 and are being amortized to income over a ten-year period. | |||||||||||||||||
Revenue taxes represents the timing difference between taxes collected and paid by the Utilities to fund mass transportation. | |||||||||||||||||
Effective March 31, 2009, the NYSPSC authorized CECONY to accrue unbilled electric, gas and steam revenues. CECONY has deferred the net margin on the unbilled revenues for the future benefit of customers by recording a regulatory liability of $138 million and $133 million at December 31, 2014 and 2013, respectively, for the difference between the unbilled revenues and energy cost liabilities. | |||||||||||||||||
CECONY [Member] | |||||||||||||||||
Regulatory Matters | Note B – Regulatory Matters | ||||||||||||||||
Rate Plans | |||||||||||||||||
The Utilities provide service to New York customers according to the terms of tariffs approved by the NYSPSC. Tariffs for service to customers of O&R’s New Jersey and Pennsylvania regulated utility subsidiaries are approved by utility regulators in those states. The tariffs include schedules of rates for service that limit the rates charged by the Utilities to amounts that 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’ 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. Utilities generally retain the right to petition for recovery or accounting deferral of extraordinary and material cost increases for items such as major storm events 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. | |||||||||||||||||
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. | |||||||||||||||||
Rate base is, in general, the sum of the Utilities’ net plant and working capital less deferred taxes. 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”). The New Jersey Board of Public Utilities (NJBPU) and the Pennsylvania Public Utility Commission (PAPUC) use the rate base balances that would exist at the beginning of the 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 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 is determined by multiplying the Utilities’ rate base by the utility’s 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 | April 2010 – December 2013 | January 2014 – December 2015 | |||||||||||||||
Base rate changes(a) | Yr. 1 – $420 million | Yr. 1 – $(76.2) million(c) | |||||||||||||||
Yr. 2 – $420 million | Yr. 2 – $124.0 million(c) | ||||||||||||||||
Yr. 3 – $287 million(b) | |||||||||||||||||
Amortizations to income of net | $(75.3) million over three years | $(37) million over two years, that includes $107 million annually for deferred major storm costs | |||||||||||||||
regulatory (assets) and liabilities | |||||||||||||||||
Other revenue sources | Retention of $120 million of annual transmission congestion revenues from the sale of transmission rights ($90 million for the period April 1, 2013 to December 31, 2013). | Retention of $90 million of annual transmission congestion revenues. | |||||||||||||||
Revenue decoupling mechanisms | In 2012 and 2013, the company deferred for customer benefit $59 million and $34 million of revenues, respectively. | In 2014, the company deferred for customer benefit $146 million of revenues. | |||||||||||||||
Recoverable energy costs | Current rate recovery of purchased power and fuel costs. | Continuation of current rate recovery of purchased power and fuel costs(d). | |||||||||||||||
Negative revenue adjustments | Potential penalties (up to $350 million annually) if certain performance targets are not met. In 2012 and 2013, the company did not record any negative revenue adjustments. | Potential penalties (up to $400 million annually) if certain performance targets are not met. In 2014, the company recorded a $5 million negative revenue adjustment. | |||||||||||||||
Cost reconciliations(e) | In 2012 and 2013, the company deferred $146 million of net regulatory liabilities and $35 million of net regulatory assets, respectively. | In 2014, the company deferred $57 million of net regulatory liabilities. | |||||||||||||||
Net utility plant reconciliations | Target levels reflected in rates were: | Target levels reflected in rates were: | |||||||||||||||
Transmission and distribution: Yr. 1 –$13,818 million; Yr. 2 – $14,742 million; | Transmission and distribution: Yr. 1 – $16,869 million; Yr. 2 – $17,401 million | ||||||||||||||||
Yr. 3 – $15,414 million | Storm hardening: Yr. 1 – $89 million; Yr. 2 – $177 million | ||||||||||||||||
Enterprise resource project: Yr. 2 – $25 million; | Other: Yr. 1 – $2,034 million; Yr. 2 – $2,102 million | ||||||||||||||||
Yr. 3 -$115 million | The company deferred an immaterial amount as a regulatory liability in 2014. | ||||||||||||||||
Other: Yr. 1 – $1,487 million; | |||||||||||||||||
Yr. 2 – $1,565 million; Yr. 3 – $1,650 million | |||||||||||||||||
The company deferred an immaterial amount and $7 million as a regulatory liability in 2012 and 2013, respectively. | |||||||||||||||||
Average rate base | Yr. 1 – $14,887 million | Yr. 1 – $17,323 million | |||||||||||||||
Yr. 2 – $15,987 million | Yr. 2 – $18,113 million | ||||||||||||||||
Yr. 3 – $16,826 million | |||||||||||||||||
Weighted average cost of capital (after-tax) | 7.76 percent | Yr. 1 – 7.05 percent | |||||||||||||||
Yr. 2 – 7.08 percent | |||||||||||||||||
Authorized return on common equity | 10.15 percent assuming the company achieved austerity measures of $27 million, $20 million and $13 million for Yrs. 1, 2 and 3. Austerity measures were achieved. | 9.2 percent | |||||||||||||||
Earnings sharing | Actual earnings above an annual earnings threshold of 11.15 percent for Yr. 1 and 10.65 percent for Yrs. 2 and 3 were to be applied to reduce regulatory assets for pensions and other postretirement benefits and other costs. | Most earnings above an annual earnings threshold of 9.8 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 $17.5 million above the threshold for the period ended 2013. | |||||||||||||||||
Cost of long-term debt | 5.65 percent | Yr. 1 – 5.17 percent | |||||||||||||||
Yr. 2 – 5.23 percent | |||||||||||||||||
Common equity ratio | 48 percent | 48 percent | |||||||||||||||
(a) | $249 million of annual revenues collected from electric customers is subject to potential refund following NYSPSC staff review of costs. See “Other Regulatory Matters” below in this Note B. Revenues for each of 2014 and 2015 include $21 million as funding for major storm reserve. | ||||||||||||||||
(b) | Temporary portion of the increase ($134 million) that was scheduled to go into effect April 1, 2012 was eliminated by the application of available credits. | ||||||||||||||||
(c) | The impact of these base rate changes is being deferred which will result in a $30 million regulatory liability at December 31, 2015. | ||||||||||||||||
(d) | With respect to transmission service provided pursuant to the open access transmission tariff of PJM Interconnection L.L.C. (PJM), the company recovered in 2014 part of charges incurred during 2013 (approximately $20 million) and, commencing in January 2014 and unless and until changed by the NYSPSC, the company will recover all charges incurred associated with the transmission service. In January 2014, PJM submitted to FERC a request that would substantially increase the charges for the transmission service. CECONY has opposed this increase. | ||||||||||||||||
(e) | Deferrals for property taxes were limited to 80 percent (90 percent beginning 2014) 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. | ||||||||||||||||
In January 2015, CECONY filed a request with the NYSPSC for an electric rate increase of $368 million, effective January 2016. The filing reflects a return on common equity of 10 percent and a common equity ratio of approximately 48 percent. | |||||||||||||||||
The company also is requesting continuation of provisions pursuant to which expenses for pension and other postretirement benefits, variable rate, tax-exempt debt, storms, the impact of new laws and environmental site investigation and remediation are reconciled to amounts reflected in rates. In addition, the company is requesting reconciliation of property taxes and municipal infrastructure support costs that, unlike the current provisions, would provide for full reconciliation of such costs. The filing also reflects continuation of the revenue decoupling mechanism and provisions for recovery of purchased power and fuel costs from customers. | |||||||||||||||||
CECONY – Gas | |||||||||||||||||
Effective period | October 2010 – December 2013 | January 2014 – December 2016 | |||||||||||||||
Base rate changes(a) | Yr. 1 – $47 million | Yr. 1 – $(54.6) million(b) | |||||||||||||||
Yr. 2 – $48 million | Yr. 2 – $38.6 million(b) | ||||||||||||||||
Yr. 3 – $47 million | Yr. 3 – $56.8 million(b) | ||||||||||||||||
Amortizations to income of net | $(53.1) million over three years | $4 million over three years | |||||||||||||||
regulatory (assets) and liabilities | |||||||||||||||||
Other revenue sources | Retention of revenues from non-firm customers of up to $58 million and 25 percent of any such revenues above $58 million. The company retained $57 million and $64 million of such revenues in 2012 and 2013, respectively. | Retention of revenues from non-firm customers of up to $65 million and 15 percent of any such revenues above $65 million. The company retained $70 million of such revenues in 2014. | |||||||||||||||
Revenue decoupling mechanisms | In 2012 and 2013, the company deferred $22 million and $36 million of regulatory liabilities, respectively. | In 2014, the company deferred $28 million of regulatory liabilities. | |||||||||||||||
Recoverable energy costs | Current rate recovery of purchased gas costs. | Continuation of current rate recovery of purchased gas costs. | |||||||||||||||
Negative revenue adjustments | Potential penalties (up to $12.6 million annually) | Potential penalties (up to $33 million in 2014, $44 million in 2015, and $56 million in 2016) if certain gas performance targets are not met. In 2014, the company did not record any negative revenue adjustments. | |||||||||||||||
if certain gas customer service and system performance targets are not met. In 2012 and 2013, the company did not record any negative revenue adjustments. | |||||||||||||||||
Cost reconciliations(c) | In 2012 and 2013, the company deferred $9 million and $26 million of net regulatory assets, respectively. | In 2014, the company deferred $38 million of net regulatory liabilities. | |||||||||||||||
Net utility plant reconciliations | Target levels reflected in rates were: | Target levels reflected in rates were: | |||||||||||||||
Gas delivery Yr. 1 – $2,934 million; | Gas delivery Yr. 1 – $3,899 million; | ||||||||||||||||
Yr. 2 – $3,148 million; Yr. 3 – $3,346 million | Yr. 2 – $4,258 million; Yr. 3 – $4,698 million | ||||||||||||||||
For 2012 and 2013, $2.9 million and $9.5 million were deferred as a regulatory liability respectively. | Storm hardening: Yr. 1 – $3 million; | ||||||||||||||||
Yr. 2 – $8 million; Yr. 3 – $30 million | |||||||||||||||||
There were no deferrals recorded in 2014. | |||||||||||||||||
Average rate base | Yr. 1 – $3,027 million | Yr. 1 – $3,521 million | |||||||||||||||
Yr. 2 – $3,245 million | Yr. 2 – $3,863 million | ||||||||||||||||
Yr. 3 – $3,434 million | Yr. 3 – $4,236 million | ||||||||||||||||
Weighted average cost of capital | 7.46 percent | Yr. 1 – 7.10 percent | |||||||||||||||
(after-tax) | Yr. 2 – 7.13 percent | ||||||||||||||||
Yr. 3 – 7.21 percent | |||||||||||||||||
Authorized return on common equity | 9.6 percent assuming the company achieved unspecified austerity measures of $4 million and $2 million in 2012 and 2013. Austerity measures were achieved. | 9.3 percent | |||||||||||||||
Earnings sharing | Actual earnings did not exceed the thresholds of 10.35 percent in Yr. 1 and 10.15 percent in Yrs. 2 and 3. | Most 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. | |||||||||||||||
Cost of long-term debt | 5.57 percent | Yr. 1 – 5.17 percent | |||||||||||||||
Yr. 2 – 5.23 percent | |||||||||||||||||
Yr. 3 – 5.39 percent | |||||||||||||||||
Common equity ratio | 48 percent | 48 percent | |||||||||||||||
(a) | $32 million of annual revenues collected from gas customers is subject to potential refund. See “Other Regulatory Matters” below. | ||||||||||||||||
(b) | The impact of these base rate changes is being deferred which will result in a $32 million regulatory liability at December 31, 2016. | ||||||||||||||||
(c) | Deferrals for property taxes were limited to 80 percent (90 percent beginning 2014) 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. | ||||||||||||||||
CECONY – Steam | |||||||||||||||||
Effective period | October 2010 – December 2013 | January 2014 – December 2016 | |||||||||||||||
Base rate changes(a) | Yr. 1 – $49.5 million | Yr. 1 – $(22.4) million(b) | |||||||||||||||
Yr. 2 – $49.5 million | Yr. 2 – $19.8 million(b) | ||||||||||||||||
Yr. 3 – $17.8 million | Yr. 3 – $20.3 million(b) | ||||||||||||||||
Yr. 3 – $31.7 million collected through a surcharge | |||||||||||||||||
Amortizations to income of net | $(20.1) million over three years | $37 million over three years | |||||||||||||||
regulatory (assets) and liabilities | |||||||||||||||||
Recoverable energy costs | Current rate recovery of purchased power and fuel costs. | Continuation of current rate recovery of purchased power and fuel costs. | |||||||||||||||
Negative revenue adjustments | Potential penalties (up to $1 million annually) if certain steam performance targets are not met. In 2012 and 2013, the company did not record any negative revenue adjustments. | Potential penalties (up to $1 million annually) if certain steam performance targets are not met. In 2014, the company did not record any negative revenue adjustments. | |||||||||||||||
Cost reconciliations(c) | In 2012 and 2013, the company deferred $12 million and $17 million of net regulatory liabilities, respectively. | In 2014, the company deferred $42 million of net regulatory liabilities. | |||||||||||||||
Net utility plant reconciliations | Target levels reflected in rates were: | Target levels reflected in rates were: | |||||||||||||||
Production Yr. 1 – $415 million; | Production Yr. 1 – $1,752 million; | ||||||||||||||||
Yr. 2 – $426 million; Yr. 3 – $433 million | Yr. 2 – $1,732 million; Yr. 3 – $1,720 million | ||||||||||||||||
Distribution: Yr. 1 – $521 million; Yr. 2 – $534 million; Yr. 3 – $543 million | Distribution: Yr. 1 – $6 million; Yr. 2 – $11 million; Yr. 3 – $25 million | ||||||||||||||||
The company reduced its regulatory liability by $0.2 million in 2012 and made no deferral in 2013. | The company reduced its regulatory liability by $1.1 million in 2014. | ||||||||||||||||
Average rate base | Yr. 1 – $1,589 million | Yr. 1 – $1,511 million | |||||||||||||||
Yr. 2 – $1,603 million | Yr. 2 – $1,547 million | ||||||||||||||||
Yr. 3 – $1,613 million | Yr. 3 – $1,604 million | ||||||||||||||||
Weighted average cost of | 7.46 percent | Yr. 1 – 7.10 percent | |||||||||||||||
capital (after-tax) | Yr. 2 – 7.13 percent | ||||||||||||||||
Yr. 3 – 7.21 percent | |||||||||||||||||
Authorized return on common equity | 9.6 percent (assuming company achieved unspecified austerity measures of $3 million and $2 million in 2012 and 2013). Austerity measures were achieved. | 9.3 percent | |||||||||||||||
Earnings sharing | Weather normalized earnings did not exceed the threshold of 10.35 percent in Yr. 1 and 10.15 percent in Yrs. 2 and 3. In 2013, actual earnings were $0.5 million above the earnings threshold of 10.15 percent. | 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. | |||||||||||||||
Cost of long-term debt | 5.57 percent | Yr. 1 – 5.17 percent | |||||||||||||||
Yr. 2 – 5.23 percent | |||||||||||||||||
Yr. 3 – 5.39 percent | |||||||||||||||||
Common equity ratio | 48 percent | 48 percent | |||||||||||||||
(a) | $6 million of annual revenues collected from steam customers is subject to potential refund. See “Other Regulatory Matters” below in this Note B. | ||||||||||||||||
(b) | The impact of these base rate changes is being deferred which will result in an $8 million regulatory liability at December 31, 2016. | ||||||||||||||||
(c) | Deferrals for property taxes were limited to 80 percent (90 percent beginning 2014) 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. | ||||||||||||||||
O&R New York – Electric | |||||||||||||||||
Effective period | July 2012 – June 2015 | ||||||||||||||||
Base rate changes | Yr. 1 – $19.4 million | ||||||||||||||||
Yr. 2 – $8.8 million | |||||||||||||||||
Yr. 3 – $15.2 million | |||||||||||||||||
Amortizations to income of net | $(32.2) million over three years | ||||||||||||||||
regulatory (assets) and liabilities | |||||||||||||||||
Revenue decoupling mechanisms | In 2012, 2013 and 2014, the company deferred for the customer’s benefit $2.6 million, $3.2 million and ($3.4) million. | ||||||||||||||||
Recoverable energy costs | Current rate recovery of purchased power and fuel costs. | ||||||||||||||||
Negative revenue adjustments | Potential penalties (up to $3 million annually) if certain customer service and system reliability performance targets are not met. In 2012, 2013 and 2014, the company did not record any negative revenue adjustments. | ||||||||||||||||
Cost reconciliations | In 2012, 2013 and 2014, the company deferred $7.8 million, $4.1 million and $(0.2) million as a net increase to regulatory assets, respectively. | ||||||||||||||||
Net utility plant reconciliations | Target levels reflected in rates were: | ||||||||||||||||
Yr. 1 – $678 million; Yr. 2- $704 million; Yr. 3 – $753 million | |||||||||||||||||
The company increased its regulatory liability by $4.2 million in 2012. The company reduced its regulatory, liability by $1.1 million and $2.3 million in 2013 and 2014, respectively. | |||||||||||||||||
Average rate base | Yr. 1 – $671 million | ||||||||||||||||
Yr. 2 – $708 million | |||||||||||||||||
Yr. 3 – $759 million | |||||||||||||||||
Weighted average cost of capital (after-tax) | Yr. 1 – 7.61 percent | ||||||||||||||||
Yr. 2 – 7.65 percent | |||||||||||||||||
Yr. 3 – 7.48 percent | |||||||||||||||||
Authorized return on common equity | Yr. 1 – 9.4 percent | ||||||||||||||||
Yr. 2 – 9.5 percent | |||||||||||||||||
Yr. 3 – 9.6 percent | |||||||||||||||||
Earnings sharing | The company recorded a regulatory liability of $1 million for earnings above the sharing threshold under the rate plan as of December 31, 2014. | ||||||||||||||||
Cost of long-term debt | Yr. 1 – 6.07 percent | ||||||||||||||||
Yr. 2 – 6.07 percent | |||||||||||||||||
Yr. 3 – 5.64 percent | |||||||||||||||||
Common equity ratio | 48 percent | ||||||||||||||||
On November 14, 2014, O&R filed a request with the NYSPSC for an increase in the rates it charges for electric service rendered in New York, effective November 1, 2015, of $33.4 million. The filing reflects a return on common equity of 9.75 percent and a common equity ratio of 48 percent. The filing proposes continuation of the current provisions with respect to recovery from customers of the cost of purchased power, and the reconciliation of actual expenses allocable to the electric business to the amounts for such costs reflected in electric rates for storm costs, pension and other postretirement benefit costs, environmental remediation and property taxes. | |||||||||||||||||
O&R New York – Gas | |||||||||||||||||
Effective period | November 2009 – December 2014 | ||||||||||||||||
Base rate changes | Yr. 1 – $9 million | ||||||||||||||||
Yr. 2 – $9 million | |||||||||||||||||
Yr. 3 – $4.6 million | |||||||||||||||||
Yr. 3 – $4.3 million collected through a surcharge | |||||||||||||||||
Amortization to income of net regulatory (assets) and liabilities | $(2) million over three years | ||||||||||||||||
Revenue decoupling mechanisms | In 2012, 2013 and 2014, the company deferred $4.7 million, $0.7 million and $(0.1) million of regulatory liabilities, respectively. | ||||||||||||||||
Recoverable energy costs | Current rate recovery of purchased gas costs. | ||||||||||||||||
Negative revenue adjustments | Potential penalties (up to $1.4 million annually) if certain operations and customer service requirements are not met. In 2012, 2013 and 2014, the company did not record any negative revenue adjustments. | ||||||||||||||||
Cost reconciliations | In 2012, 2013 and 2014, the company deferred $0.7 million, $8.3 million and $8.3 million as net regulatory assets, respectively. | ||||||||||||||||
Net utility plant reconciliations | The company deferred $0.7 million in 2012 as a regulatory asset and no deferrals were recorded for 2013 or 2014. | ||||||||||||||||
Average rate base | Yr. 1 – $280 million | ||||||||||||||||
Yr. 2 – $296 million | |||||||||||||||||
Yr. 3 – $309 million | |||||||||||||||||
Weighted average cost of capital (after-tax) | 8.49 percent | ||||||||||||||||
Authorized return on common equity | 10.4 percent | ||||||||||||||||
Earnings sharing | Earnings above an annual earnings threshold of 11.4 percent are to be applied to reduce regulatory assets. In 2012, 2013 and 2014, earnings did not exceed the earnings threshold. | ||||||||||||||||
Cost of long-term debt | 6.81 percent | ||||||||||||||||
Common equity ratio | 48 percent | ||||||||||||||||
On November 14, 2014, O&R filed a request with the NYSPSC for an increase in the rates it charges for gas service rendered in New York, effective November 1, 2015, of $40.7 million. The filing reflects a return on common equity of 9.75 percent and a common equity ratio of 48 percent. The filing proposes continuation of the current provisions with respect to recovery from customers of the cost of purchased gas, and the reconciliation of actual expenses allocable to the gas business to the amounts for such costs reflected in gas rates for pension and other postretirement benefit costs, environmental remediation and property taxes. | |||||||||||||||||
Rockland Electric Company (RECO) | |||||||||||||||||
Effective period | May 2010 – July 2014 | August 2014 – July 2015 | |||||||||||||||
Base rate changes | Yr. 1 – $9.8 million | Yr. 1 – $13.0 million | |||||||||||||||
Amortization to income of net | $(3.9) million over four years and $(4.9) million of deferred storm costs over five years | $0.4 million over three years and $(25.6) million of deferred storm costs over four years | |||||||||||||||
regulatory (assets) and liabilities | |||||||||||||||||
Recoverable energy costs | Current rate recovery of purchased power costs. | Continuation of current rate recovery of purchased power costs. | |||||||||||||||
Cost reconciliations | None | None | |||||||||||||||
Average rate base | $148.6 million | $172.2 million | |||||||||||||||
Weighted average cost of capital | 8.21 percent | 7.83 percent | |||||||||||||||
(after-tax) | |||||||||||||||||
Authorized return on common equity | 10.3 percent | 9.75 percent | |||||||||||||||
Cost of long-term debt | 6.16 percent | 5.89 percent | |||||||||||||||
Common equity ratio | 50 percent | 50 percent | |||||||||||||||
Pike County Light & Power Company (Pike) – Electric | |||||||||||||||||
Effective period | April 2009 – August 2014 | September 2014 – August 2015 | |||||||||||||||
Base rate changes(a) | Yr. 1 – $0.9 million | Yr. 1 – $1.25 million | |||||||||||||||
Amortization to income of net regulatory (assets) and liabilities | $0.1 million over 5 years | $(0.7) million of deferred storm costs over five years | |||||||||||||||
Cost reconciliations | True-up of Other Postretirement Benefits costs. The company deferred an immaterial amount as regulatory liabilities in 2012 and 2013. | True-up of Other Postretirement Benefits costs. The company deferred an immaterial amount as a regulatory liability in 2014. | |||||||||||||||
(a) | Under the current plan, the earliest that the company can file for a new base rate change is September 1, 2016. | ||||||||||||||||
Pike – Gas | |||||||||||||||||
Effective period | April 2009 – August 2014 | September 2014 – August 2015 | |||||||||||||||
Base Rate changes(a) | Yr. 1 – $0.3 million | Yr. 1 – $0.1 million | |||||||||||||||
Amortization to income of net regulatory (assets) and liabilities | None | None | |||||||||||||||
Cost reconciliations | True-up of Other Postretirement Benefits costs. The company deferred an immaterial amount as regulatory liabilities in 2012 and 2013. | True-up of Other Postretirement Benefits costs. The company deferred an immaterial amount as a regulatory liability in 2014. | |||||||||||||||
(a) | Under the current plan, the earliest that the company can file for a new base rate change is September 1, 2016. | ||||||||||||||||
Other Regulatory Matters | |||||||||||||||||
In February 2009, the NYSPSC commenced a proceeding to examine the prudence of certain CECONY expenditures following the arrests of employees for accepting illegal payments from a construction contractor. Subsequently, additional employees were arrested for accepting illegal payments from materials suppliers and an engineering firm. The arrested employees were terminated by the company and have pled guilty or been convicted. Pursuant to NYSPSC orders, a portion of the company’s revenues (currently, $249 million, $32 million and $6 million on an annual basis for electric, gas and steam service, respectively) is being collected subject to potential refund to customers. The amount of electric revenues collected subject to refund, which was established in a different proceeding, and the amount of gas and steam revenues collected subject to refund were not established as indicative of the company’s potential liability in this proceeding. At December 31, 2014, the company had collected an estimated $1,675 million from customers subject to potential refund in connection with this proceeding. In January 2013, a NYSPSC consultant reported its estimate, with which the company does not agree, of $208 million of overcharges with respect to a substantial portion of the company’s construction expenditures from January 2000 to January 2009. The company is disputing the consultant’s estimate, including its determinations as to overcharges regarding specific construction expenditures it selected to review and its methodology of extrapolating such determinations over a substantial portion of the construction expenditures during this period. The NYSPSC’s consultant has not reviewed the company’s other expenditures. The company and NYSPSC staff are exploring a settlement in this proceeding. There is no assurance that there will be a settlement, and any settlement would be subject to NYSPSC approval. At December 31, 2014, the company had a $105 million regulatory liability relating to this matter. The company currently estimates that any additional amount the NYSPSC requires the company to refund to customers in excess of the regulatory liability accrued could range up to an amount based on the NYSPSC consultant’s $208 million estimate of overcharges. | |||||||||||||||||
In late October 2012, Superstorm Sandy caused extensive damage to the Utilities’ electric distribution system and interrupted service to approximately 1.4 million customers. Superstorm Sandy also damaged CECONY’s steam system and interrupted service to many of its steam customers. As of December 31, 2014, CECONY and O&R incurred response and restoration costs for Superstorm Sandy of $503 million and $91 million, respectively (including capital expenditures of $148 million and $15 million, respectively). Most of the costs that were not capitalized were deferred for recovery as a regulatory asset under the Utilities’ electric rate plans. See “Regulatory Assets and Liabilities” below. CECONY’s current electric rate plan includes collection from customers of deferred storm costs (including for Superstorm Sandy), subject to refund following NYSPSC review of the costs. In November 2014, O&R requested recovery of deferred storm costs for its New York electric operations, which are subject to NYSPSC review. RECO’s current electric rate plan includes collection from customers of deferred storm costs. See “Rate Plans” above. | |||||||||||||||||
In June 2014, the NYSPSC initiated a proceeding to investigate the practices of qualifying persons to perform plastic fusions on gas facilities. New York State regulations require gas utilities to qualify and, except in certain circumstances, annually requalify workers that perform fusion to join plastic pipe. The NYSPSC directed the New York gas utilities to provide information in this proceeding about their compliance with the qualification and requalification requirements and related matters; their procedures for compliance with all gas safety regulations; and their annual chief executive officer certifications regarding these and other procedures. CECONY’s qualification and requalification procedures had not included certain required testing to evaluate specimen fuses. In addition, CECONY and O&R had not timely requalified certain workers that had been qualified under their respective procedures to perform fusion to join plastic pipe. CECONY and O&R have requalified their workers who perform plastic pipe fusions. In October 2014, CECONY and O&R submitted for NYSPSC staff review their plans for testing plastic pipe fusions that were performed on their gas delivery systems, additional leakage surveying and reporting. | |||||||||||||||||
Regulatory Assets and Liabilities | |||||||||||||||||
Regulatory assets and liabilities at December 31, 2014 and 2013 were comprised of the following items: | |||||||||||||||||
Con Edison | CECONY | ||||||||||||||||
(Millions of Dollars) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Regulatory assets | |||||||||||||||||
Unrecognized pension and other postretirement costs | $ | 4,846 | $ | 2,730 | $ | 4,609 | $ | 2,610 | |||||||||
Future income tax | 2,273 | 2,145 | 2,166 | 2,030 | |||||||||||||
Environmental remediation costs | 925 | 938 | 820 | 830 | |||||||||||||
Deferred storm costs | 319 | 441 | 224 | 334 | |||||||||||||
Revenue taxes | 219 | 207 | 208 | 196 | |||||||||||||
Surcharge for New York State assessment | 99 | 78 | 92 | 74 | |||||||||||||
Pension and other postretirement benefits deferrals | 66 | 237 | 42 | 211 | |||||||||||||
Net electric deferrals | 63 | 83 | 63 | 83 | |||||||||||||
Unamortized loss on reacquired debt | 57 | 65 | 55 | 62 | |||||||||||||
O&R property tax reconciliation | 36 | 22 | - | - | |||||||||||||
O&R transition bond charges | 27 | 33 | - | - | |||||||||||||
Preferred stock redemption | 27 | 28 | 27 | 28 | |||||||||||||
Deferred derivative losses – noncurrent | 25 | 8 | 23 | 7 | |||||||||||||
Recoverable energy costs – noncurrent | 19 | 29 | 17 | 28 | |||||||||||||
Workers’ compensation | 8 | 12 | 8 | 12 | |||||||||||||
Other | 147 | 145 | 127 | 134 | |||||||||||||
Regulatory assets – noncurrent | 9,156 | 7,201 | 8,481 | 6,639 | |||||||||||||
Deferred derivative losses – current | 97 | 25 | 92 | 22 | |||||||||||||
Recoverable energy costs – current | 41 | 4 | 40 | 4 | |||||||||||||
Future income tax – current | 10 | - | - | - | |||||||||||||
Regulatory assets – current | 148 | 29 | 132 | 26 | |||||||||||||
Total Regulatory Assets | $ | 9,304 | $ | 7,230 | $ | 8,613 | $ | 6,665 | |||||||||
Regulatory liabilities | |||||||||||||||||
Allowance for cost of removal less salvage | $ | 598 | $ | 540 | $ | 499 | $ | 453 | |||||||||
Property tax reconciliation | 295 | 322 | 295 | 322 | |||||||||||||
2014 rate plan rate base revenue deferrals | 155 | - | 155 | - | |||||||||||||
Net unbilled revenue deferrals | 138 | 133 | 138 | 133 | |||||||||||||
Prudence proceeding | 105 | 40 | 105 | 40 | |||||||||||||
Property tax refunds | 87 | 130 | 87 | 130 | |||||||||||||
Long-term interest rate reconciliation | 78 | 105 | 78 | 105 | |||||||||||||
New York State income tax rate change | 62 | - | 59 | - | |||||||||||||
Carrying charges on repair allowance and bonus depreciation | 58 | 88 | 57 | 87 | |||||||||||||
Pension and other postretirement benefit deferrals | 46 | 50 | 37 | 50 | |||||||||||||
World Trade Center settlement proceeds | 41 | 62 | 41 | 62 | |||||||||||||
Carrying charges on T&D net plant – electric and steam | 21 | 28 | 20 | 20 | |||||||||||||
Electric excess earnings | 19 | 22 | 18 | 18 | |||||||||||||
Other | 290 | 208 | 248 | 178 | |||||||||||||
Regulatory liabilities – noncurrent | 1,993 | 1,728 | 1,837 | 1,598 | |||||||||||||
Refundable energy costs – current | 128 | 100 | 84 | 66 | |||||||||||||
Revenue decoupling mechanism | 30 | 34 | 30 | 30 | |||||||||||||
Future income tax | 24 | - | 24 | - | |||||||||||||
Deferred derivative gains – current | 5 | 14 | 4 | 11 | |||||||||||||
Regulatory liabilities—current | 187 | 148 | 142 | 107 | |||||||||||||
Total Regulatory Liabilities | $ | 2,180 | $ | 1,876 | $ | 1,979 | $ | 1,705 | |||||||||
Unrecognized pension and other postretirement costs represents 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 expenditures, in connection with Superstorm Sandy and other major storms that were deferred by the Utilities. See “Other Regulatory Matters,” above. | |||||||||||||||||
Net electric deferrals represents the remaining unamortized balance of certain regulatory assets and liabilities of CECONY that were combined effective April 1, 2010 and are being amortized to income over a ten-year period. | |||||||||||||||||
Revenue taxes represents the timing difference between taxes collected and paid by the Utilities to fund mass transportation. | |||||||||||||||||
Effective March 31, 2009, the NYSPSC authorized CECONY to accrue unbilled electric, gas and steam revenues. CECONY has deferred the net margin on the unbilled revenues for the future benefit of customers by recording a regulatory liability of $138 million and $133 million at December 31, 2014 and 2013, respectively, for the difference between the unbilled revenues and energy cost liabilities. |
Capitalization
Capitalization | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Capitalization | Note C – Capitalization | ||||||||||||||||
Common Stock | |||||||||||||||||
At December 31, 2014 and 2013, Con Edison owned all of the issued and outstanding shares of common stock of the Utilities and the competitive energy businesses. CECONY owns 21,976,200 shares of Con Edison stock, which it purchased prior to 2001 in connection with Con Edison’s stock repurchase plan. CECONY presents in the financial statements the cost of the Con Edison stock it owns as a reduction of common shareholder’s equity. | |||||||||||||||||
Capitalization of Con Edison | |||||||||||||||||
The outstanding capitalization for each of the Companies is shown on its Consolidated Statement of Capitalization, and for Con Edison includes the Utilities’ outstanding debt. | |||||||||||||||||
Preferred Stock of CECONY | |||||||||||||||||
In May 2012, CECONY redeemed all of its outstanding shares of $5 Cumulative Preferred Stock and Cumulative Preferred Stock ($100 par value). | |||||||||||||||||
Dividends | |||||||||||||||||
In accordance with NYSPSC requirements, the dividends that the Utilities generally pay are limited to not more than 100 percent of their respective income available for dividends calculated on a two-year rolling average basis. Excluded from the calculation of “income available for dividends” are non-cash charges to income resulting from accounting changes or charges to income resulting from significant unanticipated events. The restriction also does not apply to dividends paid in order to transfer to Con Edison proceeds from major transactions, such as asset sales, or to dividends reducing each utility subsidiary’s equity ratio to a level appropriate to its business risk. | |||||||||||||||||
Long-term Debt | |||||||||||||||||
Long-term debt maturing in the period 2015-2019 is as follows: | |||||||||||||||||
(Millions of Dollars) | Con Edison | CECONY | |||||||||||||||
2015 | $ | 560 | $ | 350 | |||||||||||||
2016 | 731 | 650 | |||||||||||||||
2017 | 6 | - | |||||||||||||||
2018 | 1,260 | 1,200 | |||||||||||||||
2019 | 540 | 475 | |||||||||||||||
The Utilities have issued $494 million of tax-exempt debt through the New York State Energy Research and Development Authority (NYSERDA) that currently bear interest at a rate determined weekly and is subject to tender by bondholders for purchase by the Utilities. | |||||||||||||||||
The carrying amounts and fair values of long-term debt at December 31, 2014 and 2013 are: | |||||||||||||||||
(Millions of Dollars) | 2014 | 2013 | |||||||||||||||
Long-Term Debt | Carrying | Fair | Carrying | Fair | |||||||||||||
(including current | Amount | Value | Amount | Value | |||||||||||||
portion) | |||||||||||||||||
Con Edison | $ | 12,191 | $ | 13,998 | $ | 10,974 | $ | 12,082 | |||||||||
CECONY | $ | 11,214 | $ | 12,846 | $ | 9,841 | $ | 10,797 | |||||||||
Fair values of long-term debt have been estimated primarily using available market information. For Con Edison, $13,362 million and $636 million of the fair value of long-term debt at December 31, 2014 are classified as Level 2 and Level 3, respectively. For CECONY, $12,210 million and $636 million of the fair value of long-term debt at December 31, 2014 are classified as Level 2 and Level 3, respectively (see Note P). The $636 million of long-term debt classified as Level 3 is CECONY’s tax-exempt, auction-rate securities for which the market is highly illiquid and there is a lack of observable inputs. | |||||||||||||||||
At December 31, 2014 and 2013, long-term debt of Con Edison included $18 million and $22 million, respectively, of Transition Bonds issued in 2004 by O&R’s New Jersey utility subsidiary through a special purpose entity. | |||||||||||||||||
Significant Debt Covenants | |||||||||||||||||
The significant debt covenants under the financing arrangements for the notes of Con Edison and the debentures of CECONY are obligations to pay principal and interest when due, covenants not to consolidate with or merge into any other corporation unless certain conditions are met and, for Con Edison’s notes, covenants that Con Edison shall continue its utility business in New York City and shall not permit Con Edison’s ratio of consolidated debt to consolidated capital to exceed 0.675 to 1. Con Edison’s notes are also subject to cross default provisions with respect to other indebtedness of Con Edison or its material subsidiaries having a then outstanding principal balance in excess of $100 million. CECONY’s debentures have no cross default provisions. The tax-exempt financing arrangements of the Utilities are subject to covenants for the CECONY debentures discussed above and the covenants discussed below. The Companies were in compliance with their significant debt covenants at December 31, 2014. | |||||||||||||||||
The tax-exempt financing arrangements involved the issuance of uncollateralized promissory notes of the Utilities to NYSERDA in exchange for the net proceeds of a like amount of tax-exempt bonds with substantially the same terms sold to the public by NYSERDA. The tax-exempt financing arrangements include covenants with respect to the tax-exempt status of the financing, including covenants with respect to the use of the facilities financed. The arrangements include provisions for the maintenance of liquidity and credit facilities, the failure to comply with which would, except as otherwise provided, constitute an event of default for the debt to which such provisions applied. | |||||||||||||||||
The failure to comply with debt covenants would, except as otherwise provided, constitute an event of default for the debt to which such provisions applied. If an event of default were to occur, the principal and accrued interest on the debt to which such event of default applied and, in the case of the Con Edison notes, a make-whole premium might and, in the case of certain events of default would, become due and payable immediately. | |||||||||||||||||
The liquidity and credit facilities currently in effect for the tax-exempt financing include covenants that the ratio of debt to total capital of the obligated utility will not at any time exceed 0.65 to 1 and that, subject to certain exceptions, the utility will not mortgage, lien, pledge or otherwise encumber its assets. Certain of the facilities also include as events of default, defaults in payments of other debt obligations in excess of specified levels ($150 million or $100 million for CECONY, depending on the facility). | |||||||||||||||||
CECONY [Member] | |||||||||||||||||
Capitalization | Note C – Capitalization | ||||||||||||||||
Common Stock | |||||||||||||||||
At December 31, 2014 and 2013, Con Edison owned all of the issued and outstanding shares of common stock of the Utilities and the competitive energy businesses. CECONY owns 21,976,200 shares of Con Edison stock, which it purchased prior to 2001 in connection with Con Edison’s stock repurchase plan. CECONY presents in the financial statements the cost of the Con Edison stock it owns as a reduction of common shareholder’s equity. | |||||||||||||||||
Capitalization of Con Edison | |||||||||||||||||
The outstanding capitalization for each of the Companies is shown on its Consolidated Statement of Capitalization, and for Con Edison includes the Utilities’ outstanding debt. | |||||||||||||||||
Preferred Stock of CECONY | |||||||||||||||||
In May 2012, CECONY redeemed all of its outstanding shares of $5 Cumulative Preferred Stock and Cumulative Preferred Stock ($100 par value). | |||||||||||||||||
Dividends | |||||||||||||||||
In accordance with NYSPSC requirements, the dividends that the Utilities generally pay are limited to not more than 100 percent of their respective income available for dividends calculated on a two-year rolling average basis. Excluded from the calculation of “income available for dividends” are non-cash charges to income resulting from accounting changes or charges to income resulting from significant unanticipated events. The restriction also does not apply to dividends paid in order to transfer to Con Edison proceeds from major transactions, such as asset sales, or to dividends reducing each utility subsidiary’s equity ratio to a level appropriate to its business risk. | |||||||||||||||||
Long-term Debt | |||||||||||||||||
Long-term debt maturing in the period 2015-2019 is as follows: | |||||||||||||||||
(Millions of Dollars) | Con Edison | CECONY | |||||||||||||||
2015 | $ | 560 | $ | 350 | |||||||||||||
2016 | 731 | 650 | |||||||||||||||
2017 | 6 | - | |||||||||||||||
2018 | 1,260 | 1,200 | |||||||||||||||
2019 | 540 | 475 | |||||||||||||||
The Utilities have issued $494 million of tax-exempt debt through the New York State Energy Research and Development Authority (NYSERDA) that currently bear interest at a rate determined weekly and is subject to tender by bondholders for purchase by the Utilities. | |||||||||||||||||
The carrying amounts and fair values of long-term debt at December 31, 2014 and 2013 are: | |||||||||||||||||
(Millions of Dollars) | 2014 | 2013 | |||||||||||||||
Long-Term Debt | Carrying | Fair | Carrying | Fair | |||||||||||||
(including current | Amount | Value | Amount | Value | |||||||||||||
portion) | |||||||||||||||||
Con Edison | $ | 12,191 | $ | 13,998 | $ | 10,974 | $ | 12,082 | |||||||||
CECONY | $ | 11,214 | $ | 12,846 | $ | 9,841 | $ | 10,797 | |||||||||
Fair values of long-term debt have been estimated primarily using available market information. For Con Edison, $13,362 million and $636 million of the fair value of long-term debt at December 31, 2014 are classified as Level 2 and Level 3, respectively. For CECONY, $12,210 million and $636 million of the fair value of long-term debt at December 31, 2014 are classified as Level 2 and Level 3, respectively (see Note P). The $636 million of long-term debt classified as Level 3 is CECONY’s tax-exempt, auction-rate securities for which the market is highly illiquid and there is a lack of observable inputs. | |||||||||||||||||
At December 31, 2014 and 2013, long-term debt of Con Edison included $18 million and $22 million, respectively, of Transition Bonds issued in 2004 by O&R’s New Jersey utility subsidiary through a special purpose entity. | |||||||||||||||||
Significant Debt Covenants | |||||||||||||||||
The significant debt covenants under the financing arrangements for the notes of Con Edison and the debentures of CECONY are obligations to pay principal and interest when due, covenants not to consolidate with or merge into any other corporation unless certain conditions are met and, for Con Edison’s notes, covenants that Con Edison shall continue its utility business in New York City and shall not permit Con Edison’s ratio of consolidated debt to consolidated capital to exceed 0.675 to 1. Con Edison’s notes are also subject to cross default provisions with respect to other indebtedness of Con Edison or its material subsidiaries having a then outstanding principal balance in excess of $100 million. CECONY’s debentures have no cross default provisions. The tax-exempt financing arrangements of the Utilities are subject to covenants for the CECONY debentures discussed above and the covenants discussed below. The Companies were in compliance with their significant debt covenants at December 31, 2014. | |||||||||||||||||
The tax-exempt financing arrangements involved the issuance of uncollateralized promissory notes of the Utilities to NYSERDA in exchange for the net proceeds of a like amount of tax-exempt bonds with substantially the same terms sold to the public by NYSERDA. The tax-exempt financing arrangements include covenants with respect to the tax-exempt status of the financing, including covenants with respect to the use of the facilities financed. The arrangements include provisions for the maintenance of liquidity and credit facilities, the failure to comply with which would, except as otherwise provided, constitute an event of default for the debt to which such provisions applied. | |||||||||||||||||
The failure to comply with debt covenants would, except as otherwise provided, constitute an event of default for the debt to which such provisions applied. If an event of default were to occur, the principal and accrued interest on the debt to which such event of default applied and, in the case of the Con Edison notes, a make-whole premium might and, in the case of certain events of default would, become due and payable immediately. | |||||||||||||||||
The liquidity and credit facilities currently in effect for the tax-exempt financing include covenants that the ratio of debt to total capital of the obligated utility will not at any time exceed 0.65 to 1 and that, subject to certain exceptions, the utility will not mortgage, lien, pledge or otherwise encumber its assets. Certain of the facilities also include as events of default, defaults in payments of other debt obligations in excess of specified levels ($150 million or $100 million for CECONY, depending on the facility). |
ShortTerm_Borrowing
Short-Term Borrowing | 12 Months Ended |
Dec. 31, 2014 | |
Short-Term Borrowing | Note D – Short-Term Borrowing |
In October 2011, 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 2013, expires in October 2017. There is a maximum of $2.25 billion of credit available through October 2016 and approximately $2.1 billion of credit available from then through October 2017. The full amount is available to CECONY and $1 billion is available to Con Edison, including up to $1.2 billion 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, 2014, Con Edison had $800 million of commercial paper outstanding of which $450 million was outstanding under CECONY’s program. The weighted average interest rate at December 31, 2014 was 0.4 percent for both Con Edison and CECONY. At December 31, 2013, Con Edison had $1,451 million of commercial paper outstanding of which $1,210 million was outstanding under CECONY’s program. The weighted average interest rate at December 31, 2013 was 0.2 percent for both Con Edison and CECONY. At December 31, 2014 and 2013, no loans were outstanding under the Credit Agreement and $11 million (including $11 million for CECONY) and $26 million (including $11 million for CECONY) of letters of credit were outstanding under the Credit Agreement. | |
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 include the exceeding at any time of a ratio of consolidated debt to consolidated total capital of 0.65 to 1 (at December 31, 2014 this ratio was 0.51 to 1 for Con Edison and CECONY); having liens on its assets in an aggregate amount exceeding five percent of its consolidated total capital, subject to certain exceptions; and the failure, following any applicable notice period, to meet certain other customary covenants. 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 covenants at December 31, 2014. | |
See Note S for information about short-term borrowing between related parties. | |
CECONY [Member] | |
Short-Term Borrowing | Note D – Short-Term Borrowing |
In October 2011, 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 2013, expires in October 2017. There is a maximum of $2.25 billion of credit available through October 2016 and approximately $2.1 billion of credit available from then through October 2017. The full amount is available to CECONY and $1 billion is available to Con Edison, including up to $1.2 billion 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, 2014, Con Edison had $800 million of commercial paper outstanding of which $450 million was outstanding under CECONY’s program. The weighted average interest rate at December 31, 2014 was 0.4 percent for both Con Edison and CECONY. At December 31, 2013, Con Edison had $1,451 million of commercial paper outstanding of which $1,210 million was outstanding under CECONY’s program. The weighted average interest rate at December 31, 2013 was 0.2 percent for both Con Edison and CECONY. At December 31, 2014 and 2013, no loans were outstanding under the Credit Agreement and $11 million (including $11 million for CECONY) and $26 million (including $11 million for CECONY) of letters of credit were outstanding under the Credit Agreement. | |
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 include the exceeding at any time of a ratio of consolidated debt to consolidated total capital of 0.65 to 1 (at December 31, 2014 this ratio was 0.51 to 1 for Con Edison and CECONY); having liens on its assets in an aggregate amount exceeding five percent of its consolidated total capital, subject to certain exceptions; and the failure, following any applicable notice period, to meet certain other customary covenants. 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 covenants at December 31, 2014. | |
See Note S for information about short-term borrowing between related parties. |
Pension_Benefits
Pension Benefits | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Pension Benefits | Note E – Pension Benefits | ||||||||||||||||||||||||
Con Edison maintains a tax-qualified, non-contributory pension plan that covers substantially all employees of CECONY and O&R and certain employees of Con Edison’s competitive energy businesses. The plan is designed to comply with the Internal Revenue Code and the Employee Retirement Income Security Act of 1974. In addition, Con Edison maintains additional non-qualified supplemental pension plans. | |||||||||||||||||||||||||
Net Periodic Benefit Cost | |||||||||||||||||||||||||
The components of the Companies’ total periodic benefit costs for 2014, 2013 and 2012 were as follows: | |||||||||||||||||||||||||
Con Edison | CECONY | ||||||||||||||||||||||||
(Millions of Dollars) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Service cost – including administrative expenses | $ | 227 | $ | 267 | $ | 237 | $ | 211 | $ | 249 | $ | 220 | |||||||||||||
Interest cost on projected benefit obligation | 572 | 537 | 547 | 536 | 503 | 513 | |||||||||||||||||||
Expected return on plan assets | (832 | ) | (750 | ) | (705 | ) | (789 | ) | (713 | ) | (670 | ) | |||||||||||||
Recognition of net actuarial loss | 618 | 832 | 709 | 586 | 788 | 670 | |||||||||||||||||||
Recognition of prior service costs | 4 | 5 | 8 | 2 | 4 | 6 | |||||||||||||||||||
NET PERIODIC BENEFIT COST | $ | 589 | $ | 891 | $ | 796 | $ | 546 | $ | 831 | $ | 739 | |||||||||||||
Amortization of regulatory asset* | 2 | 2 | 2 | 2 | 2 | 2 | |||||||||||||||||||
TOTAL PERIODIC BENEFIT COST | $ | 591 | $ | 893 | $ | 798 | $ | 548 | $ | 833 | $ | 741 | |||||||||||||
Cost capitalized | (225 | ) | (348 | ) | (277 | ) | (212 | ) | (327 | ) | (260 | ) | |||||||||||||
Reconciliation to rate level | 118 | (84 | ) | (8 | ) | 108 | (87 | ) | (12 | ) | |||||||||||||||
Cost charged to operating expenses | $ | 484 | $ | 461 | $ | 513 | $ | 444 | $ | 419 | $ | 469 | |||||||||||||
* | Relates to an increase in CECONY’s pension obligation of $45 million from a 1999 special retirement program. | ||||||||||||||||||||||||
Funded Status | |||||||||||||||||||||||||
The funded status at December 31, 2014, 2013 and 2012 was as follows: | |||||||||||||||||||||||||
Con Edison | CECONY | ||||||||||||||||||||||||
(Millions of Dollars) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
CHANGE IN PROJECTED BENEFIT OBLIGATION | |||||||||||||||||||||||||
Projected benefit obligation at beginning of year | $ | 12,197 | $ | 13,406 | $ | 11,825 | $ | 11,429 | $ | 12,572 | $ | 11,072 | |||||||||||||
Service cost – excluding administrative expenses | 221 | 259 | 224 | 206 | 241 | 209 | |||||||||||||||||||
Interest cost on projected benefit obligation | 572 | 537 | 547 | 536 | 503 | 513 | |||||||||||||||||||
Net actuarial (gain)/loss | 2,641 | (1,469 | ) | 1,323 | 2,484 | (1,388 | ) | 1,255 | |||||||||||||||||
Plan amendments | 6 | - | - | - | - | - | |||||||||||||||||||
Benefits paid | (556 | ) | (536 | ) | (513 | ) | (518 | ) | (499 | ) | (477 | ) | |||||||||||||
PROJECTED BENEFIT OBLIGATION AT END OF YEAR | $ | 15,081 | $ | 12,197 | $ | 13,406 | $ | 14,137 | $ | 11,429 | $ | 12,572 | |||||||||||||
CHANGE IN PLAN ASSETS | |||||||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 10,755 | $ | 9,135 | $ | 7,800 | $ | 10,197 | $ | 8,668 | $ | 7,406 | |||||||||||||
Actual return on plan assets | 752 | 1,310 | 1,094 | 715 | 1,241 | 1,040 | |||||||||||||||||||
Employer contributions | 578 | 879 | 785 | 535 | 819 | 729 | |||||||||||||||||||
Benefits paid | (556 | ) | (536 | ) | (513 | ) | (518 | ) | (499 | ) | (477 | ) | |||||||||||||
Administrative expenses | (34 | ) | (33 | ) | (31 | ) | (32 | ) | (32 | ) | (30 | ) | |||||||||||||
FAIR VALUE OF PLAN ASSETS AT END OF YEAR | $ | 11,495 | $ | 10,755 | $ | 9,135 | $ | 10,897 | $ | 10,197 | $ | 8,668 | |||||||||||||
FUNDED STATUS | $ | (3,586 | ) | $ | (1,442 | ) | $ | (4,271 | ) | $ | (3,240 | ) | $ | (1,232 | ) | $ | (3,904 | ) | |||||||
Unrecognized net loss | $ | 4,888 | $ | 2,759 | $ | 5,594 | $ | 4,616 | $ | 2,617 | $ | 5,297 | |||||||||||||
Unrecognized prior service costs | 20 | 17 | 23 | 4 | 6 | 10 | |||||||||||||||||||
Accumulated benefit obligation | 13,454 | 11,004 | 11,911 | 12,553 | 10,268 | 11,116 | |||||||||||||||||||
The increase in the pension plan’s projected benefit obligation (due primarily to decreased discount rates and, as discussed below, the release of new mortality tables by the Society of Actuaries reflecting longer life expectancies) were the primary causes of the increased pension liability at Con Edison and CECONY of $2,144 million and $2,008 million, respectively, compared with December 31, 2013. For Con Edison, this increase in pension liability resulted in an increase to regulatory assets of $2,101 million for unrecognized net losses and unrecognized prior service costs associated with the Utilities consistent with the accounting rules for regulated operations, and a charge to OCI of $17 million (net of taxes) for the unrecognized net losses, and an immaterial change to OCI (net of taxes) for the unrecognized prior service costs associated with the competitive energy businesses and O&R’s New Jersey and Pennsylvania utility subsidiaries. | |||||||||||||||||||||||||
For CECONY, the increase in pension liability resulted in an increase to regulatory assets of $1,992 million for unrecognized net losses and unrecognized prior service costs consistent with the accounting rules for regulated operations, a debit to OCI of $3 million (net of taxes) for unrecognized net losses, and an immaterial change to OCI (net of taxes) for the unrecognized prior service costs associated with the competitive energy businesses. | |||||||||||||||||||||||||
A portion of the unrecognized net loss and prior service cost for the pension plan, equal to $783 million and $4 million, respectively, will be recognized from accumulated OCI and the regulatory asset into net periodic benefit cost over the next year for Con Edison. Included in these amounts are $740 million and $2 million, respectively, for CECONY. | |||||||||||||||||||||||||
At December 31, 2014 and 2013, Con Edison’s investments include $225 million and $201 million, respectively, held in external trust accounts for benefit payments pursuant to the supplemental retirement plans. Included in these amounts for CECONY were $208 million and $183 million, respectively. See Note P. The accumulated benefit obligations for the supplemental retirement plans for Con Edison and CECONY were $289 million and $250 million as of December 31, 2014 and $234 million and $199 million as of December 31, 2013, respectively. | |||||||||||||||||||||||||
Assumptions | |||||||||||||||||||||||||
The actuarial assumptions were as follows: | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Weighted-average assumptions used to determine benefit obligations at December 31: | |||||||||||||||||||||||||
Discount rate | 3.9 | % | 4.8 | % | 4.1 | % | |||||||||||||||||||
Rate of compensation increase | |||||||||||||||||||||||||
– CECONY | 4.25 | % | 4.35 | % | 4.35 | % | |||||||||||||||||||
– O&R | 4 | % | 4.25 | % | 4.25 | % | |||||||||||||||||||
Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31: | |||||||||||||||||||||||||
Discount rate | 4.8 | % | 4.1 | % | 4.7 | % | |||||||||||||||||||
Expected return on plan assets | 8 | % | 8 | % | 8 | % | |||||||||||||||||||
Rate of compensation increase | |||||||||||||||||||||||||
– CECONY | 4.35 | % | 4.35 | % | 4.35 | % | |||||||||||||||||||
– O&R | 4.25 | % | 4.25 | % | 4.25 | % | |||||||||||||||||||
The expected return assumption reflects anticipated returns on the plan’s current and future assets. The Companies’ expected return was based on an evaluation of the current environment, market and economic outlook, relationships between the economy and asset class performance patterns, and recent and long-term trends in asset class performance. The projections were based on the plan’s target asset allocation. | |||||||||||||||||||||||||
Discount Rate Assumption | |||||||||||||||||||||||||
To determine the assumed discount rate, the Companies use a model that produces a yield curve based on yields on selected highly rated (Aa or higher by either Moody’s Investors Service (Moody’s) or Standard & Poor’s) corporate bonds. Bonds with insufficient liquidity, bonds with questionable pricing information and bonds that are not representative of the overall market are excluded from consideration. For example, the bonds used in the model cannot be callable, they must have a price between 50 percent and 200 percent of the original price, the yield must lie between 1 percent and 20 percent, and the amount of the bond issue outstanding must be in excess of $50 million. The spot rates defined by the yield curve and the plan’s projected benefit payments are used to develop a weighted average discount rate. | |||||||||||||||||||||||||
Expected Benefit Payments | |||||||||||||||||||||||||
Based on current assumptions, the Companies expect to make the following benefit payments over the next ten years: | |||||||||||||||||||||||||
(Millions of Dollars) | 2015 | 2016 | 2017 | 2018 | 2019 | 2020-2024 | |||||||||||||||||||
Con Edison | $ | 592 | $ | 615 | $ | 636 | $ | 658 | $ | 678 | $ | 3,642 | |||||||||||||
CECONY | 552 | 574 | 594 | 613 | 632 | 3,388 | |||||||||||||||||||
Expected Contributions | |||||||||||||||||||||||||
Based on estimates as of December 31, 2014, the Companies expect to make contributions to the pension plan during 2015 of $756 million (of which $703 million is to be contributed by CECONY). The Companies’ policy is to fund the total periodic benefit cost of the qualified plan to the extent tax deductible and to also contribute to the non-qualified plans. | |||||||||||||||||||||||||
Plan Assets | |||||||||||||||||||||||||
The asset allocations for the pension plan at the end of 2014, 2013 and 2012, and the target allocation for 2015 are as follows: | |||||||||||||||||||||||||
Target | Plan Assets at December 31, | ||||||||||||||||||||||||
Allocation Range | |||||||||||||||||||||||||
Asset Category | 2015 | 2014 | 2013 | 2012 | |||||||||||||||||||||
Equity Securities | 55% - 65% | 58 | % | 60 | % | 60 | % | ||||||||||||||||||
Debt Securities | 27% - 33% | 32 | % | 30 | % | 31 | % | ||||||||||||||||||
Real Estate | 8% - 12% | 10 | % | 10 | % | 9 | % | ||||||||||||||||||
Total | 100% | 100 | % | 100 | % | 100 | % | ||||||||||||||||||
Con Edison has established a pension trust for the investment of assets to be used for the exclusive purpose of providing retirement benefits to participants and beneficiaries and payment of plan expenses. | |||||||||||||||||||||||||
Pursuant to resolutions adopted by Con Edison’s Board of Directors, the Management Development and Compensation Committee of the Board of Directors (the Committee) has general oversight responsibility for Con Edison’s pension and other employee benefit plans. The pension plan’s named fiduciaries have been granted the authority to control and manage the operation and administration of the plans, including overall responsibility for the investment of assets in the trust and the power to appoint and terminate investment managers. | |||||||||||||||||||||||||
The investment objectives of the Con Edison pension plan are to maintain a level and form of assets adequate to meet benefit obligations to participants, to achieve the expected long-term total return on the trust assets within a prudent level of risk and maintain a level of volatility that is not expected to have a material impact on the Company’s expected contribution and expense or the Company’s ability to meet plan obligations. The assets of the plan have no significant concentration of risk in one country (other than the United States), industry or entity. | |||||||||||||||||||||||||
The strategic asset allocation is intended to meet the objectives of the pension plan by diversifying its funds across asset classes, investment styles and fund managers. An asset/liability study typically is conducted every few years to determine whether the current strategic asset allocation continues to represent the appropriate balance of expected risk and reward for the plan to meet expected liabilities. Each study considers the investment risk of the asset allocation and determines the optimal asset allocation for the plan. The target asset allocation for 2015 reflects the results of such a study conducted in 2011. | |||||||||||||||||||||||||
Individual fund managers operate under written guidelines provided by Con Edison, which cover such areas as investment objectives, performance measurement, permissible investments, investment restrictions, trading and execution, and communication and reporting requirements. Con Edison management regularly monitors, and the named fiduciaries review and report to the Committee regarding, asset class performance, total fund performance, and compliance with asset allocation guidelines. Management changes fund managers and rebalances the portfolio as appropriate. At the direction of the named fiduciaries, such changes are reported to the Committee. | |||||||||||||||||||||||||
Assets measured at fair value on a recurring basis are summarized below under a three-level hierarchy as defined by the accounting rules for fair value measurements (see Note P). | |||||||||||||||||||||||||
The fair values of the pension plan assets at December 31, 2014 by asset category are as follows: | |||||||||||||||||||||||||
(Millions of Dollars) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
U.S. Equity(a) | $ | 3,168 | $ | - | $ | - | $ | 3,168 | |||||||||||||||||
International Equity(b) | 2,841 | 361 | - | 3,202 | |||||||||||||||||||||
Private Equity(c) | - | - | 114 | 114 | |||||||||||||||||||||
U.S. Government Issued Debt(d) | - | 2,113 | - | 2,113 | |||||||||||||||||||||
Corporate Bonds Debt(e) | - | 1,351 | - | 1,351 | |||||||||||||||||||||
Structured Assets Debt(f) | - | 4 | - | 4 | |||||||||||||||||||||
Other Fixed Income Debt(g) | - | 208 | - | 208 | |||||||||||||||||||||
Real Estate(h) | - | - | 1,137 | 1,137 | |||||||||||||||||||||
Cash and Cash Equivalents(i) | 188 | 477 | - | 665 | |||||||||||||||||||||
Futures(j) | 192 | 37 | - | 229 | |||||||||||||||||||||
Hedge Funds(k) | - | - | 224 | 224 | |||||||||||||||||||||
Total investments | $ | 6,389 | $ | 4,551 | $ | 1,475 | $ | 12,415 | |||||||||||||||||
Funds for retiree health benefits(l) | (184 | ) | (131 | ) | (43 | ) | (358 | ) | |||||||||||||||||
Investments (excluding funds for retiree health benefits) | $ | 6,205 | $ | 4,420 | $ | 1,432 | $ | 12,057 | |||||||||||||||||
Pending activities(m) | (562 | ) | |||||||||||||||||||||||
Total fair value of plan net assets | $ | 11,495 | |||||||||||||||||||||||
(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) | Private Equity consists of global equity funds that are not exchange-traded. | ||||||||||||||||||||||||
(d) | U.S. Government Issued Debt includes agency and treasury securities. | ||||||||||||||||||||||||
(e) | Corporate Bonds Debt consists of debt issued by various corporations. | ||||||||||||||||||||||||
(f) | Structured Assets Debt includes commercial-mortgage-backed securities and collateralized mortgage obligations. | ||||||||||||||||||||||||
(g) | Other Fixed Income Debt includes municipal bonds, sovereign debt and regional governments. | ||||||||||||||||||||||||
(h) | Real Estate investments include real estate funds based on appraised values that are broadly diversified by geography and property type. | ||||||||||||||||||||||||
(i) | Cash and Cash Equivalents include short term investments, money markets, foreign currency and cash collateral. | ||||||||||||||||||||||||
(j) | Futures consist of exchange-traded financial contracts encompassing U.S. Equity, International Equity and U.S. Government indices. | ||||||||||||||||||||||||
(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. | ||||||||||||||||||||||||
The table below provides a reconciliation of the beginning and ending net balances for assets at December 31, 2014 classified as Level 3 in the fair value hierarchy. | |||||||||||||||||||||||||
(Millions of Dollars) | Beginning | Assets Still Held | Assets Sold | Purchases | Transfer | Ending | |||||||||||||||||||
Balance as of | at Reporting Date – | During the | Sales and | In/(Out) of | Balance as of | ||||||||||||||||||||
January 1, 2014 | Unrealized Gains/ | Year – Realized | Settlements | Level 3 | December 31, | ||||||||||||||||||||
(Losses) | Gains/(Losses) | 2014 | |||||||||||||||||||||||
Real Estate | $ | 1,062 | $ | 86 | $ | 20 | $ | (31 | ) | $ | - | $ | 1,137 | ||||||||||||
Private Equity | 67 | 12 | - | 35 | - | 114 | |||||||||||||||||||
Hedge Funds | 206 | 11 | - | 7 | - | 224 | |||||||||||||||||||
Total investments | $ | 1,335 | $ | 109 | $ | 20 | $ | 11 | $ | - | $ | 1,475 | |||||||||||||
Funds for retiree health benefits | (42 | ) | (1 | ) | - | - | - | (43 | ) | ||||||||||||||||
Investments (excluding funds for retiree health benefits) | $ | 1,293 | $ | 108 | $ | 20 | $ | 11 | $ | - | $ | 1,432 | |||||||||||||
The fair values of the pension plan assets at December 31, 2013 by asset category are as follows: | |||||||||||||||||||||||||
(Millions of Dollars) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
U.S. Equity(a) | $ | 3,057 | $ | - | $ | - | $ | 3,057 | |||||||||||||||||
International Equity(b) | 2,303 | 871 | - | 3,174 | |||||||||||||||||||||
Private Equity(c) | - | - | 67 | 67 | |||||||||||||||||||||
U.S. Government Issued Debt(d) | - | 1,855 | - | 1,855 | |||||||||||||||||||||
Corporate Bonds Debt(e) | - | 1,151 | - | 1,151 | |||||||||||||||||||||
Structured Assets Debt(f) | - | 4 | - | 4 | |||||||||||||||||||||
Other Fixed Income Debt(g) | - | 150 | - | 150 | |||||||||||||||||||||
Real Estate(h) | - | - | 1,062 | 1,062 | |||||||||||||||||||||
Cash and Cash Equivalents(i) | 127 | 558 | - | 685 | |||||||||||||||||||||
Futures(j) | 348 | - | - | 348 | |||||||||||||||||||||
Hedge Funds(k) | - | - | 206 | 206 | |||||||||||||||||||||
Total investments | $ | 5,835 | $ | 4,589 | $ | 1,335 | $ | 11,759 | |||||||||||||||||
Funds for retiree health benefits(l) | (185 | ) | (145 | ) | (42 | ) | (372 | ) | |||||||||||||||||
Investments(excluding funds for retiree health benefits) | $ | 5,650 | $ | 4,444 | $ | 1,293 | $ | 11,387 | |||||||||||||||||
Pending activities(m) | (632 | ) | |||||||||||||||||||||||
Total fair value of plan net assets | $ | 10,755 | |||||||||||||||||||||||
(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) | Private Equity consists of global equity funds that are not exchange-traded. | ||||||||||||||||||||||||
(d) | U.S. Government Issued Debt includes agency and treasury securities. | ||||||||||||||||||||||||
(e) | Corporate Bonds Debt consists of debt issued by various corporations. | ||||||||||||||||||||||||
(f) | Structured Assets Debt includes commercial-mortgage-backed securities and collateralized mortgage obligations. | ||||||||||||||||||||||||
(g) | Other Fixed Income Debt includes municipal bonds, sovereign debt and regional governments. | ||||||||||||||||||||||||
(h) | Real Estate investments include real estate funds based on appraised values that are broadly diversified by geography and property type. | ||||||||||||||||||||||||
(i) | Cash and Cash Equivalents include short term investments, money markets, foreign currency and cash collateral. | ||||||||||||||||||||||||
(j) | Futures consist of exchange-traded financial contracts encompassing U.S. Equity, International Equity and U.S. Government indices. | ||||||||||||||||||||||||
(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. | ||||||||||||||||||||||||
The table below provides a reconciliation of the beginning and ending net balances for assets at December 31, 2013 classified as Level 3 in the fair value hierarchy. | |||||||||||||||||||||||||
(Millions of Dollars) | Beginning | Assets Still Held | Assets Sold | Purchases | Transfer | Ending | |||||||||||||||||||
Balance as of | at Reporting Date – | During the | Sales and | In/(Out) of | Balance as of | ||||||||||||||||||||
January 1, 2013 | Unrealized | Year – Realized | Settlements | Level 3 | December 31, | ||||||||||||||||||||
Gains/(Losses) | Gains/(Losses) | 2013 | |||||||||||||||||||||||
Real Estate | $ | 833 | $ | 114 | $ | 1 | $ | 114 | $ | - | $ | 1,062 | |||||||||||||
Private Equity | 20 | 5 | - | 42 | - | 67 | |||||||||||||||||||
Hedge Funds | - | 6 | - | 200 | - | 206 | |||||||||||||||||||
Total investments | $ | 853 | $ | 125 | $ | 1 | $ | 356 | $ | - | $ | 1,335 | |||||||||||||
Funds for retiree health benefits | (31 | ) | (3 | ) | - | (8 | ) | - | (42 | ) | |||||||||||||||
Investments (excluding funds for retiree health benefits) | $ | 822 | $ | 122 | $ | 1 | $ | 348 | $ | - | $ | 1,293 | |||||||||||||
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) | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Con Edison | $ | 32 | $ | 30 | $ | 23 | |||||||||||||||||||
CECONY | 27 | 26 | 21 | ||||||||||||||||||||||
Mortality Table Revision | |||||||||||||||||||||||||
The Companies adopted revised mortality tables effective December 31, 2014 in the measurement of its pension and other postretirement benefit plan obligations, accounting costs and required contribution amounts. The revised tables reflect the RP-2014 mortality tables published by the Society of Actuaries in October 2014, as adjusted based on the actual experience of the Companies. The new tables incorporate substantial life expectancy improvements relative to the last tables published in 2000 (RP-2000). As a result of the adoption, Con Edison recognized an increase in its pension benefit obligation of approximately $800 million as of December 31, 2014. The Companies, under their current New York rate plans, defer as a regulatory asset or liability, as the case may be, the differences between the actual level of expenses for pension and other postretirement benefits and amounts for those expenses reflected in rates. | |||||||||||||||||||||||||
CECONY [Member] | |||||||||||||||||||||||||
Pension Benefits | Note E – Pension Benefits | ||||||||||||||||||||||||
Con Edison maintains a tax-qualified, non-contributory pension plan that covers substantially all employees of CECONY and O&R and certain employees of Con Edison’s competitive energy businesses. The plan is designed to comply with the Internal Revenue Code and the Employee Retirement Income Security Act of 1974. In addition, Con Edison maintains additional non-qualified supplemental pension plans. | |||||||||||||||||||||||||
Net Periodic Benefit Cost | |||||||||||||||||||||||||
The components of the Companies’ total periodic benefit costs for 2014, 2013 and 2012 were as follows: | |||||||||||||||||||||||||
Con Edison | CECONY | ||||||||||||||||||||||||
(Millions of Dollars) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Service cost – including administrative expenses | $ | 227 | $ | 267 | $ | 237 | $ | 211 | $ | 249 | $ | 220 | |||||||||||||
Interest cost on projected benefit obligation | 572 | 537 | 547 | 536 | 503 | 513 | |||||||||||||||||||
Expected return on plan assets | (832 | ) | (750 | ) | (705 | ) | (789 | ) | (713 | ) | (670 | ) | |||||||||||||
Recognition of net actuarial loss | 618 | 832 | 709 | 586 | 788 | 670 | |||||||||||||||||||
Recognition of prior service costs | 4 | 5 | 8 | 2 | 4 | 6 | |||||||||||||||||||
NET PERIODIC BENEFIT COST | $ | 589 | $ | 891 | $ | 796 | $ | 546 | $ | 831 | $ | 739 | |||||||||||||
Amortization of regulatory asset* | 2 | 2 | 2 | 2 | 2 | 2 | |||||||||||||||||||
TOTAL PERIODIC BENEFIT COST | $ | 591 | $ | 893 | $ | 798 | $ | 548 | $ | 833 | $ | 741 | |||||||||||||
Cost capitalized | (225 | ) | (348 | ) | (277 | ) | (212 | ) | (327 | ) | (260 | ) | |||||||||||||
Reconciliation to rate level | 118 | (84 | ) | (8 | ) | 108 | (87 | ) | (12 | ) | |||||||||||||||
Cost charged to operating expenses | $ | 484 | $ | 461 | $ | 513 | $ | 444 | $ | 419 | $ | 469 | |||||||||||||
* | Relates to an increase in CECONY’s pension obligation of $45 million from a 1999 special retirement program. | ||||||||||||||||||||||||
Funded Status | |||||||||||||||||||||||||
The funded status at December 31, 2014, 2013 and 2012 was as follows: | |||||||||||||||||||||||||
Con Edison | CECONY | ||||||||||||||||||||||||
(Millions of Dollars) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
CHANGE IN PROJECTED BENEFIT OBLIGATION | |||||||||||||||||||||||||
Projected benefit obligation at beginning of year | $ | 12,197 | $ | 13,406 | $ | 11,825 | $ | 11,429 | $ | 12,572 | $ | 11,072 | |||||||||||||
Service cost – excluding administrative expenses | 221 | 259 | 224 | 206 | 241 | 209 | |||||||||||||||||||
Interest cost on projected benefit obligation | 572 | 537 | 547 | 536 | 503 | 513 | |||||||||||||||||||
Net actuarial (gain)/loss | 2,641 | (1,469 | ) | 1,323 | 2,484 | (1,388 | ) | 1,255 | |||||||||||||||||
Plan amendments | 6 | - | - | - | - | - | |||||||||||||||||||
Benefits paid | (556 | ) | (536 | ) | (513 | ) | (518 | ) | (499 | ) | (477 | ) | |||||||||||||
PROJECTED BENEFIT OBLIGATION AT END OF YEAR | $ | 15,081 | $ | 12,197 | $ | 13,406 | $ | 14,137 | $ | 11,429 | $ | 12,572 | |||||||||||||
CHANGE IN PLAN ASSETS | |||||||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 10,755 | $ | 9,135 | $ | 7,800 | $ | 10,197 | $ | 8,668 | $ | 7,406 | |||||||||||||
Actual return on plan assets | 752 | 1,310 | 1,094 | 715 | 1,241 | 1,040 | |||||||||||||||||||
Employer contributions | 578 | 879 | 785 | 535 | 819 | 729 | |||||||||||||||||||
Benefits paid | (556 | ) | (536 | ) | (513 | ) | (518 | ) | (499 | ) | (477 | ) | |||||||||||||
Administrative expenses | (34 | ) | (33 | ) | (31 | ) | (32 | ) | (32 | ) | (30 | ) | |||||||||||||
FAIR VALUE OF PLAN ASSETS AT END OF YEAR | $ | 11,495 | $ | 10,755 | $ | 9,135 | $ | 10,897 | $ | 10,197 | $ | 8,668 | |||||||||||||
FUNDED STATUS | $ | (3,586 | ) | $ | (1,442 | ) | $ | (4,271 | ) | $ | (3,240 | ) | $ | (1,232 | ) | $ | (3,904 | ) | |||||||
Unrecognized net loss | $ | 4,888 | $ | 2,759 | $ | 5,594 | $ | 4,616 | $ | 2,617 | $ | 5,297 | |||||||||||||
Unrecognized prior service costs | 20 | 17 | 23 | 4 | 6 | 10 | |||||||||||||||||||
Accumulated benefit obligation | 13,454 | 11,004 | 11,911 | 12,553 | 10,268 | 11,116 | |||||||||||||||||||
The increase in the pension plan’s projected benefit obligation (due primarily to decreased discount rates and, as discussed below, the release of new mortality tables by the Society of Actuaries reflecting longer life expectancies) were the primary causes of the increased pension liability at Con Edison and CECONY of $2,144 million and $2,008 million, respectively, compared with December 31, 2013. For Con Edison, this increase in pension liability resulted in an increase to regulatory assets of $2,101 million for unrecognized net losses and unrecognized prior service costs associated with the Utilities consistent with the accounting rules for regulated operations, and a charge to OCI of $17 million (net of taxes) for the unrecognized net losses, and an immaterial change to OCI (net of taxes) for the unrecognized prior service costs associated with the competitive energy businesses and O&R’s New Jersey and Pennsylvania utility subsidiaries. | |||||||||||||||||||||||||
For CECONY, the increase in pension liability resulted in an increase to regulatory assets of $1,992 million for unrecognized net losses and unrecognized prior service costs consistent with the accounting rules for regulated operations, a debit to OCI of $3 million (net of taxes) for unrecognized net losses, and an immaterial change to OCI (net of taxes) for the unrecognized prior service costs associated with the competitive energy businesses. | |||||||||||||||||||||||||
A portion of the unrecognized net loss and prior service cost for the pension plan, equal to $783 million and $4 million, respectively, will be recognized from accumulated OCI and the regulatory asset into net periodic benefit cost over the next year for Con Edison. Included in these amounts are $740 million and $2 million, respectively, for CECONY. | |||||||||||||||||||||||||
At December 31, 2014 and 2013, Con Edison’s investments include $225 million and $201 million, respectively, held in external trust accounts for benefit payments pursuant to the supplemental retirement plans. Included in these amounts for CECONY were $208 million and $183 million, respectively. See Note P. The accumulated benefit obligations for the supplemental retirement plans for Con Edison and CECONY were $289 million and $250 million as of December 31, 2014 and $234 million and $199 million as of December 31, 2013, respectively. | |||||||||||||||||||||||||
Assumptions | |||||||||||||||||||||||||
The actuarial assumptions were as follows: | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Weighted-average assumptions used to determine benefit obligations at December 31: | |||||||||||||||||||||||||
Discount rate | 3.9 | % | 4.8 | % | 4.1 | % | |||||||||||||||||||
Rate of compensation increase | |||||||||||||||||||||||||
– CECONY | 4.25 | % | 4.35 | % | 4.35 | % | |||||||||||||||||||
– O&R | 4 | % | 4.25 | % | 4.25 | % | |||||||||||||||||||
Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31: | |||||||||||||||||||||||||
Discount rate | 4.8 | % | 4.1 | % | 4.7 | % | |||||||||||||||||||
Expected return on plan assets | 8 | % | 8 | % | 8 | % | |||||||||||||||||||
Rate of compensation increase | |||||||||||||||||||||||||
– CECONY | 4.35 | % | 4.35 | % | 4.35 | % | |||||||||||||||||||
– O&R | 4.25 | % | 4.25 | % | 4.25 | % | |||||||||||||||||||
The expected return assumption reflects anticipated returns on the plan’s current and future assets. The Companies’ expected return was based on an evaluation of the current environment, market and economic outlook, relationships between the economy and asset class performance patterns, and recent and long-term trends in asset class performance. The projections were based on the plan’s target asset allocation. | |||||||||||||||||||||||||
Discount Rate Assumption | |||||||||||||||||||||||||
To determine the assumed discount rate, the Companies use a model that produces a yield curve based on yields on selected highly rated (Aa or higher by either Moody’s Investors Service (Moody’s) or Standard & Poor’s) corporate bonds. Bonds with insufficient liquidity, bonds with questionable pricing information and bonds that are not representative of the overall market are excluded from consideration. For example, the bonds used in the model cannot be callable, they must have a price between 50 percent and 200 percent of the original price, the yield must lie between 1 percent and 20 percent, and the amount of the bond issue outstanding must be in excess of $50 million. The spot rates defined by the yield curve and the plan’s projected benefit payments are used to develop a weighted average discount rate. | |||||||||||||||||||||||||
Expected Benefit Payments | |||||||||||||||||||||||||
Based on current assumptions, the Companies expect to make the following benefit payments over the next ten years: | |||||||||||||||||||||||||
(Millions of Dollars) | 2015 | 2016 | 2017 | 2018 | 2019 | 2020-2024 | |||||||||||||||||||
Con Edison | $ | 592 | $ | 615 | $ | 636 | $ | 658 | $ | 678 | $ | 3,642 | |||||||||||||
CECONY | 552 | 574 | 594 | 613 | 632 | 3,388 | |||||||||||||||||||
Expected Contributions | |||||||||||||||||||||||||
Based on estimates as of December 31, 2014, the Companies expect to make contributions to the pension plan during 2015 of $756 million (of which $703 million is to be contributed by CECONY). The Companies’ policy is to fund the total periodic benefit cost of the qualified plan to the extent tax deductible and to also contribute to the non-qualified plans. | |||||||||||||||||||||||||
Plan Assets | |||||||||||||||||||||||||
The asset allocations for the pension plan at the end of 2014, 2013 and 2012, and the target allocation for 2015 are as follows: | |||||||||||||||||||||||||
Target | Plan Assets at December 31, | ||||||||||||||||||||||||
Allocation Range | |||||||||||||||||||||||||
Asset Category | 2015 | 2014 | 2013 | 2012 | |||||||||||||||||||||
Equity Securities | 55% - 65% | 58 | % | 60 | % | 60 | % | ||||||||||||||||||
Debt Securities | 27% - 33% | 32 | % | 30 | % | 31 | % | ||||||||||||||||||
Real Estate | 8% - 12% | 10 | % | 10 | % | 9 | % | ||||||||||||||||||
Total | 100% | 100 | % | 100 | % | 100 | % | ||||||||||||||||||
Con Edison has established a pension trust for the investment of assets to be used for the exclusive purpose of providing retirement benefits to participants and beneficiaries and payment of plan expenses. | |||||||||||||||||||||||||
Pursuant to resolutions adopted by Con Edison’s Board of Directors, the Management Development and Compensation Committee of the Board of Directors (the Committee) has general oversight responsibility for Con Edison’s pension and other employee benefit plans. The pension plan’s named fiduciaries have been granted the authority to control and manage the operation and administration of the plans, including overall responsibility for the investment of assets in the trust and the power to appoint and terminate investment managers. | |||||||||||||||||||||||||
The investment objectives of the Con Edison pension plan are to maintain a level and form of assets adequate to meet benefit obligations to participants, to achieve the expected long-term total return on the trust assets within a prudent level of risk and maintain a level of volatility that is not expected to have a material impact on the Company’s expected contribution and expense or the Company’s ability to meet plan obligations. The assets of the plan have no significant concentration of risk in one country (other than the United States), industry or entity. | |||||||||||||||||||||||||
The strategic asset allocation is intended to meet the objectives of the pension plan by diversifying its funds across asset classes, investment styles and fund managers. An asset/liability study typically is conducted every few years to determine whether the current strategic asset allocation continues to represent the appropriate balance of expected risk and reward for the plan to meet expected liabilities. Each study considers the investment risk of the asset allocation and determines the optimal asset allocation for the plan. The target asset allocation for 2015 reflects the results of such a study conducted in 2011. | |||||||||||||||||||||||||
Individual fund managers operate under written guidelines provided by Con Edison, which cover such areas as investment objectives, performance measurement, permissible investments, investment restrictions, trading and execution, and communication and reporting requirements. Con Edison management regularly monitors, and the named fiduciaries review and report to the Committee regarding, asset class performance, total fund performance, and compliance with asset allocation guidelines. Management changes fund managers and rebalances the portfolio as appropriate. At the direction of the named fiduciaries, such changes are reported to the Committee. | |||||||||||||||||||||||||
Assets measured at fair value on a recurring basis are summarized below under a three-level hierarchy as defined by the accounting rules for fair value measurements (see Note P). | |||||||||||||||||||||||||
The fair values of the pension plan assets at December 31, 2014 by asset category are as follows: | |||||||||||||||||||||||||
(Millions of Dollars) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
U.S. Equity(a) | $ | 3,168 | $ | - | $ | - | $ | 3,168 | |||||||||||||||||
International Equity(b) | 2,841 | 361 | - | 3,202 | |||||||||||||||||||||
Private Equity(c) | - | - | 114 | 114 | |||||||||||||||||||||
U.S. Government Issued Debt(d) | - | 2,113 | - | 2,113 | |||||||||||||||||||||
Corporate Bonds Debt(e) | - | 1,351 | - | 1,351 | |||||||||||||||||||||
Structured Assets Debt(f) | - | 4 | - | 4 | |||||||||||||||||||||
Other Fixed Income Debt(g) | - | 208 | - | 208 | |||||||||||||||||||||
Real Estate(h) | - | - | 1,137 | 1,137 | |||||||||||||||||||||
Cash and Cash Equivalents(i) | 188 | 477 | - | 665 | |||||||||||||||||||||
Futures(j) | 192 | 37 | - | 229 | |||||||||||||||||||||
Hedge Funds(k) | - | - | 224 | 224 | |||||||||||||||||||||
Total investments | $ | 6,389 | $ | 4,551 | $ | 1,475 | $ | 12,415 | |||||||||||||||||
Funds for retiree health benefits(l) | (184 | ) | (131 | ) | (43 | ) | (358 | ) | |||||||||||||||||
Investments (excluding funds for retiree health benefits) | $ | 6,205 | $ | 4,420 | $ | 1,432 | $ | 12,057 | |||||||||||||||||
Pending activities(m) | (562 | ) | |||||||||||||||||||||||
Total fair value of plan net assets | $ | 11,495 | |||||||||||||||||||||||
(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) | Private Equity consists of global equity funds that are not exchange-traded. | ||||||||||||||||||||||||
(d) | U.S. Government Issued Debt includes agency and treasury securities. | ||||||||||||||||||||||||
(e) | Corporate Bonds Debt consists of debt issued by various corporations. | ||||||||||||||||||||||||
(f) | Structured Assets Debt includes commercial-mortgage-backed securities and collateralized mortgage obligations. | ||||||||||||||||||||||||
(g) | Other Fixed Income Debt includes municipal bonds, sovereign debt and regional governments. | ||||||||||||||||||||||||
(h) | Real Estate investments include real estate funds based on appraised values that are broadly diversified by geography and property type. | ||||||||||||||||||||||||
(i) | Cash and Cash Equivalents include short term investments, money markets, foreign currency and cash collateral. | ||||||||||||||||||||||||
(j) | Futures consist of exchange-traded financial contracts encompassing U.S. Equity, International Equity and U.S. Government indices. | ||||||||||||||||||||||||
(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. | ||||||||||||||||||||||||
The table below provides a reconciliation of the beginning and ending net balances for assets at December 31, 2014 classified as Level 3 in the fair value hierarchy. | |||||||||||||||||||||||||
(Millions of Dollars) | Beginning | Assets Still Held | Assets Sold | Purchases | Transfer | Ending | |||||||||||||||||||
Balance as of | at Reporting Date – | During the | Sales and | In/(Out) of | Balance as of | ||||||||||||||||||||
January 1, 2014 | Unrealized Gains/ | Year – Realized | Settlements | Level 3 | December 31, | ||||||||||||||||||||
(Losses) | Gains/(Losses) | 2014 | |||||||||||||||||||||||
Real Estate | $ | 1,062 | $ | 86 | $ | 20 | $ | (31 | ) | $ | - | $ | 1,137 | ||||||||||||
Private Equity | 67 | 12 | - | 35 | - | 114 | |||||||||||||||||||
Hedge Funds | 206 | 11 | - | 7 | - | 224 | |||||||||||||||||||
Total investments | $ | 1,335 | $ | 109 | $ | 20 | $ | 11 | $ | - | $ | 1,475 | |||||||||||||
Funds for retiree health benefits | (42 | ) | (1 | ) | - | - | - | (43 | ) | ||||||||||||||||
Investments (excluding funds for retiree health benefits) | $ | 1,293 | $ | 108 | $ | 20 | $ | 11 | $ | - | $ | 1,432 | |||||||||||||
The fair values of the pension plan assets at December 31, 2013 by asset category are as follows: | |||||||||||||||||||||||||
(Millions of Dollars) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
U.S. Equity(a) | $ | 3,057 | $ | - | $ | - | $ | 3,057 | |||||||||||||||||
International Equity(b) | 2,303 | 871 | - | 3,174 | |||||||||||||||||||||
Private Equity(c) | - | - | 67 | 67 | |||||||||||||||||||||
U.S. Government Issued Debt(d) | - | 1,855 | - | 1,855 | |||||||||||||||||||||
Corporate Bonds Debt(e) | - | 1,151 | - | 1,151 | |||||||||||||||||||||
Structured Assets Debt(f) | - | 4 | - | 4 | |||||||||||||||||||||
Other Fixed Income Debt(g) | - | 150 | - | 150 | |||||||||||||||||||||
Real Estate(h) | - | - | 1,062 | 1,062 | |||||||||||||||||||||
Cash and Cash Equivalents(i) | 127 | 558 | - | 685 | |||||||||||||||||||||
Futures(j) | 348 | - | - | 348 | |||||||||||||||||||||
Hedge Funds(k) | - | - | 206 | 206 | |||||||||||||||||||||
Total investments | $ | 5,835 | $ | 4,589 | $ | 1,335 | $ | 11,759 | |||||||||||||||||
Funds for retiree health benefits(l) | (185 | ) | (145 | ) | (42 | ) | (372 | ) | |||||||||||||||||
Investments(excluding funds for retiree health benefits) | $ | 5,650 | $ | 4,444 | $ | 1,293 | $ | 11,387 | |||||||||||||||||
Pending activities(m) | (632 | ) | |||||||||||||||||||||||
Total fair value of plan net assets | $ | 10,755 | |||||||||||||||||||||||
(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) | Private Equity consists of global equity funds that are not exchange-traded. | ||||||||||||||||||||||||
(d) | U.S. Government Issued Debt includes agency and treasury securities. | ||||||||||||||||||||||||
(e) | Corporate Bonds Debt consists of debt issued by various corporations. | ||||||||||||||||||||||||
(f) | Structured Assets Debt includes commercial-mortgage-backed securities and collateralized mortgage obligations. | ||||||||||||||||||||||||
(g) | Other Fixed Income Debt includes municipal bonds, sovereign debt and regional governments. | ||||||||||||||||||||||||
(h) | Real Estate investments include real estate funds based on appraised values that are broadly diversified by geography and property type. | ||||||||||||||||||||||||
(i) | Cash and Cash Equivalents include short term investments, money markets, foreign currency and cash collateral. | ||||||||||||||||||||||||
(j) | Futures consist of exchange-traded financial contracts encompassing U.S. Equity, International Equity and U.S. Government indices. | ||||||||||||||||||||||||
(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. | ||||||||||||||||||||||||
The table below provides a reconciliation of the beginning and ending net balances for assets at December 31, 2013 classified as Level 3 in the fair value hierarchy. | |||||||||||||||||||||||||
(Millions of Dollars) | Beginning | Assets Still Held | Assets Sold | Purchases | Transfer | Ending | |||||||||||||||||||
Balance as of | at Reporting Date – | During the | Sales and | In/(Out) of | Balance as of | ||||||||||||||||||||
January 1, 2013 | Unrealized | Year – Realized | Settlements | Level 3 | December 31, | ||||||||||||||||||||
Gains/(Losses) | Gains/(Losses) | 2013 | |||||||||||||||||||||||
Real Estate | $ | 833 | $ | 114 | $ | 1 | $ | 114 | $ | - | $ | 1,062 | |||||||||||||
Private Equity | 20 | 5 | - | 42 | - | 67 | |||||||||||||||||||
Hedge Funds | - | 6 | - | 200 | - | 206 | |||||||||||||||||||
Total investments | $ | 853 | $ | 125 | $ | 1 | $ | 356 | $ | - | $ | 1,335 | |||||||||||||
Funds for retiree health benefits | (31 | ) | (3 | ) | - | (8 | ) | - | (42 | ) | |||||||||||||||
Investments (excluding funds for retiree health benefits) | $ | 822 | $ | 122 | $ | 1 | $ | 348 | $ | - | $ | 1,293 | |||||||||||||
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) | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Con Edison | $ | 32 | $ | 30 | $ | 23 | |||||||||||||||||||
CECONY | 27 | 26 | 21 | ||||||||||||||||||||||
Mortality Table Revision | |||||||||||||||||||||||||
The Companies adopted revised mortality tables effective December 31, 2014 in the measurement of its pension and other postretirement benefit plan obligations, accounting costs and required contribution amounts. The revised tables reflect the RP-2014 mortality tables published by the Society of Actuaries in October 2014, as adjusted based on the actual experience of the Companies. The new tables incorporate substantial life expectancy improvements relative to the last tables published in 2000 (RP-2000). As a result of the adoption, Con Edison recognized an increase in its pension benefit obligation of approximately $800 million as of December 31, 2014. The Companies, under their current New York rate plans, defer as a regulatory asset or liability, as the case may be, the differences between the actual level of expenses for pension and other postretirement benefits and amounts for those expenses reflected in rates. |
Other_Postretirement_Benefits
Other Postretirement Benefits | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Other Postretirement Benefits | Note F – Other Postretirement Benefits | ||||||||||||||||||||||||
The Utilities currently have contributory comprehensive hospital, medical and prescription drug programs for all retirees, their dependents and surviving spouses. | |||||||||||||||||||||||||
CECONY also has a contributory life insurance program for bargaining unit employees and provides basic life insurance benefits up to a specified maximum at no cost to retired management employees. O&R has a non-contributory life insurance program for retirees. Certain employees of Con Edison’s competitive energy businesses are eligible to receive benefits under these programs. | |||||||||||||||||||||||||
Net Periodic Benefit Cost | |||||||||||||||||||||||||
The components of the Companies’ net periodic postretirement benefit costs for 2014, 2013 and 2012 were as follows: | |||||||||||||||||||||||||
Con Edison | CECONY | ||||||||||||||||||||||||
(Millions of Dollars) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Service cost | $ | 19 | $ | 23 | $ | 26 | $ | 15 | $ | 18 | $ | 21 | |||||||||||||
Interest cost on accumulated other postretirement benefit obligation | 60 | 54 | 73 | 52 | 46 | 63 | |||||||||||||||||||
Expected return on plan assets | (77 | ) | (77 | ) | (85 | ) | (68 | ) | (68 | ) | (75 | ) | |||||||||||||
Recognition of net actuarial loss | 57 | 65 | 98 | 51 | 57 | 87 | |||||||||||||||||||
Recognition of prior service cost | (19 | ) | (27 | ) | (21 | ) | (15 | ) | (23 | ) | (18 | ) | |||||||||||||
Recognition of transition obligation | - | - | 2 | - | - | 2 | |||||||||||||||||||
NET PERIODIC POSTRETIREMENT BENEFIT COST | $ | 40 | $ | 38 | $ | 93 | $ | 35 | $ | 30 | $ | 80 | |||||||||||||
Cost capitalized | (15 | ) | (15 | ) | (32 | ) | (14 | ) | (12 | ) | (28 | ) | |||||||||||||
Reconciliation to rate level | 10 | 58 | 20 | 2 | 50 | 16 | |||||||||||||||||||
Cost charged to operating expenses | $ | 35 | $ | 81 | $ | 81 | $ | 23 | $ | 68 | $ | 68 | |||||||||||||
Funded Status | |||||||||||||||||||||||||
The funded status of the programs at December 31, 2014, 2013 and 2012 were as follows: | |||||||||||||||||||||||||
Con Edison | CECONY | ||||||||||||||||||||||||
(Millions of Dollars) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
CHANGE IN BENEFIT OBLIGATION | |||||||||||||||||||||||||
Benefit obligation at beginning of year | $ | 1,395 | $ | 1,454 | $ | 1,756 | $ | 1,198 | $ | 1,238 | $ | 1,511 | |||||||||||||
Service cost | 19 | 23 | 26 | 15 | 18 | 21 | |||||||||||||||||||
Interest cost on accumulated postretirement benefit obligation | 60 | 54 | 73 | 52 | 46 | 63 | |||||||||||||||||||
Amendments | (12 | ) | - | (127 | ) | - | - | (89 | ) | ||||||||||||||||
Net actuarial loss/(gain) | 47 | (42 | ) | (175 | ) | 28 | (20 | ) | (178 | ) | |||||||||||||||
Benefits paid and administrative expenses | (134 | ) | (136 | ) | (146 | ) | (125 | ) | (126 | ) | (134 | ) | |||||||||||||
Participant contributions | 36 | 38 | 37 | 35 | 38 | 36 | |||||||||||||||||||
Medicare prescription subsidy | - | 4 | 10 | - | 4 | 8 | |||||||||||||||||||
BENEFIT OBLIGATION AT END OF YEAR | $ | 1,411 | $ | 1,395 | $ | 1,454 | $ | 1,203 | $ | 1,198 | $ | 1,238 | |||||||||||||
CHANGE IN PLAN ASSETS | |||||||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 1,113 | $ | 1,047 | $ | 947 | $ | 977 | $ | 922 | $ | 840 | |||||||||||||
Actual return on plan assets | 59 | 153 | 124 | 54 | 134 | 109 | |||||||||||||||||||
Employer contributions | 7 | 9 | 83 | 7 | 9 | 71 | |||||||||||||||||||
EGWP payments | 12 | 8 | - | 11 | 7 | - | |||||||||||||||||||
Participant contributions | 36 | 38 | 37 | 35 | 38 | 36 | |||||||||||||||||||
Benefits paid | (143 | ) | (142 | ) | (144 | ) | (134 | ) | (133 | ) | (134 | ) | |||||||||||||
FAIR VALUE OF PLAN ASSETS AT END OF YEAR | $ | 1,084 | $ | 1,113 | $ | 1,047 | $ | 950 | $ | 977 | $ | 922 | |||||||||||||
FUNDED STATUS | $ | (327 | ) | $ | (282 | ) | $ | (407 | ) | $ | (253 | ) | $ | (221 | ) | $ | (316 | ) | |||||||
Unrecognized net loss | $ | 78 | $ | 70 | $ | 251 | $ | 45 | $ | 54 | $ | 197 | |||||||||||||
Unrecognized prior service costs | (71 | ) | (78 | ) | (105 | ) | (46 | ) | (61 | ) | (84 | ) | |||||||||||||
In 2012, the Utilities amended their postretirement life and health benefit plans for management employees, resulting in a reduction to the obligation of $102 million. Also in 2012, the Utilities amended the retiree contributions for supplemental postretirement life insurance for CECONY management and weekly retirees, resulting in a reduction to the obligation of $25 million. Also in 2012, the Utilities elected to change the method of receiving the subsidy under Medicare Part D for retiree prescription drug coverage from the Retiree Drug Subsidy to the Employer Group Waiver Plan (EGWP) beginning in January 2013. Participation in the EGWP allows Con Edison to offer substantially the same postretirement benefits to eligible participants while increasing subsidy reimbursements received by the plans from the Federal Government. This change was effective January 2013 and, as a result, the Utilities recognized a reduction to their postretirement health benefit obligation of $306 million as of December 31, 2012, which was recorded as an actuarial gain. | |||||||||||||||||||||||||
The increase in the other postretirement benefit plan obligation (due primarily to decreased discount rates) was the primary cause of the increased liability for other postretirement benefits at Con Edison and CECONY of $45 million and $32 million, respectively, compared with December 31, 2013. For Con Edison, this increased liability resulted in an increase to regulatory assets of $14 million for unrecognized net losses and unrecognized prior service costs associated with the Utilities consistent with the accounting rules for regulated operations, and a charge to OCI of $3 million (net of taxes) for the unrecognized net losses and an immaterial change to OCI (net of taxes) for the unrecognized prior service costs associated with the competitive energy businesses and O&R’s New Jersey subsidiary. | |||||||||||||||||||||||||
For CECONY, the increase in liability resulted in an increase to regulatory assets of $6 million for unrecognized net losses and unrecognized prior service costs associated with the company consistent with the accounting rules for regulated operations, a debit to OCI of $2 million (net of taxes) for the unrecognized net losses and an immaterial change to OCI for unrecognized prior service costs associated with the competitive energy businesses. | |||||||||||||||||||||||||
A portion of the unrecognized net losses and prior service costs for the other postretirement benefits, equal to $33 million and $(20) million, respectively, will be recognized from accumulated OCI and the regulatory asset into net periodic benefit cost over the next year for Con Edison. Included in these amounts are $29 million and $(14) million, respectively, for CECONY. | |||||||||||||||||||||||||
Assumptions | |||||||||||||||||||||||||
The actuarial assumptions were as follows: | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Weighted-average assumptions used to determine benefit obligations at December 31: | |||||||||||||||||||||||||
Discount Rate | |||||||||||||||||||||||||
CECONY | 3.75 | % | 4.5 | % | 3.75 | % | |||||||||||||||||||
O&R | 3.85 | % | 4.75 | % | 4.05 | % | |||||||||||||||||||
Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31: | |||||||||||||||||||||||||
Discount Rate | |||||||||||||||||||||||||
CECONY | 4.5 | % | 3.75 | % | 4.55 | % | |||||||||||||||||||
O&R | 4.75 | % | 4.05 | % | 4.55 | % | |||||||||||||||||||
Expected Return on Plan Assets | 7.75 | % | 7.75 | % | 8.5 | % | |||||||||||||||||||
Refer to Note E for descriptions of the basis for determining the expected return on assets, investment policies and strategies and the assumed discount rate. | |||||||||||||||||||||||||
The health care cost trend rate used to determine net periodic benefit cost for the year ended December 31, 2014 was 5.50 percent, which is assumed to decrease gradually to 4.50 percent by 2018 and remain at that level thereafter. The health care cost trend rate used to determine benefit obligations as of December 31, 2014 was 5.25 percent, which is assumed to decrease gradually to 4.50 percent by 2018 and remain at that level thereafter. | |||||||||||||||||||||||||
A one-percentage point change in the assumed health care cost trend rate would have the following effects at December 31, 2015: | |||||||||||||||||||||||||
Con Edison | CECONY | ||||||||||||||||||||||||
1-Percentage-Point | |||||||||||||||||||||||||
(Millions of Dollars) | Increase | Decrease | Increase | Decrease | |||||||||||||||||||||
Effect on accumulated other postretirement benefit obligation | $ | (21 | ) | $ | 40 | $ | (43 | ) | $ | 57 | |||||||||||||||
Effect on service cost and interest cost components for 2014 | (2 | ) | 1 | (4 | ) | 3 | |||||||||||||||||||
Expected Benefit Payments | |||||||||||||||||||||||||
Based on current assumptions, the Companies expect to make the following benefit payments over the next ten years, net of receipt of governmental subsidies: | |||||||||||||||||||||||||
(Millions of Dollars) | 2015 | 2016 | 2017 | 2018 | 2019 | 2020-2024 | |||||||||||||||||||
BENEFIT PAYMENTS | |||||||||||||||||||||||||
Con Edison | $ | 99 | $ | 95 | $ | 94 | $ | 92 | $ | 89 | $ | 419 | |||||||||||||
CECONY | 89 | 85 | 84 | 82 | 79 | 364 | |||||||||||||||||||
Expected Contributions | |||||||||||||||||||||||||
Based on estimates as of December 31, 2014, Con Edison expects to make a contribution of $6 million, nearly all of which is for CECONY, to the other postretirement benefit plans in 2015. | |||||||||||||||||||||||||
Plan Assets | |||||||||||||||||||||||||
The asset allocations for CECONY’s other postretirement benefit plans at the end of 2014, 2013 and 2012, and the target allocation for 2015 are as follows: | |||||||||||||||||||||||||
Target Allocation Range | Plan Assets at | ||||||||||||||||||||||||
December 31 | |||||||||||||||||||||||||
Asset Category | 2015 | 2014 | 2013 | 2012 | |||||||||||||||||||||
Equity Securities | 57% - 73% | 59 | % | 61 | % | 62% | |||||||||||||||||||
Debt Securities | 26% - 44% | 41 | % | 39 | % | 38% | |||||||||||||||||||
Total | 100% | 100 | % | 100 | % | 100% | |||||||||||||||||||
Con Edison has established postretirement health and life insurance benefit plan trusts for the investment of assets to be used for the exclusive purpose of providing other postretirement benefits to participants and beneficiaries. | |||||||||||||||||||||||||
Refer to Note E for a discussion of Con Edison’s investment policy for its benefit plans. | |||||||||||||||||||||||||
The fair values of the plan assets at December 31, 2014 by asset category as defined by the accounting rules for fair value measurements (see Note P) are as follows: | |||||||||||||||||||||||||
(Millions of Dollars) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Equity(a) | $ | - | $ | 428 | $ | - | $ | 428 | |||||||||||||||||
Other Fixed Income Debt(b) | - | 286 | - | 286 | |||||||||||||||||||||
Cash and Cash Equivalents(c) | - | 11 | - | 11 | |||||||||||||||||||||
Total investments | $ | - | $ | 725 | $ | - | $ | 725 | |||||||||||||||||
Funds for retiree health benefits(d) | 184 | 131 | 43 | 358 | |||||||||||||||||||||
Investments(including funds for retiree health benefits) | $ | 184 | $ | 856 | $ | 43 | $ | 1,083 | |||||||||||||||||
Pending activities(e) | 1 | ||||||||||||||||||||||||
Total fair value of plan net assets | $ | 1,084 | |||||||||||||||||||||||
(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 Barclays Capital Aggregate 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) | Pending activities include security purchases and sales that have not settled, interest and dividends that have not been received, and reflects adjustments for available estimates at year end. | ||||||||||||||||||||||||
The table below provides a reconciliation of the beginning and ending net balances for assets at December 31, 2014 classified as Level 3 in the fair value hierarchy. | |||||||||||||||||||||||||
(Millions of Dollars) | Beginning | Assets Still Held | Assets Sold | Purchases | Transfers | Ending | |||||||||||||||||||
Balance as of | at Reporting Date – | During the | Sales and | In/(Out) of | Balance as of | ||||||||||||||||||||
January 1, 2014 | Unrealized | Year – Realized | Settlements | Level 3 | December 31, | ||||||||||||||||||||
Gains/(Losses) | Gains/(Losses) | 2014 | |||||||||||||||||||||||
Total investments | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||
Funds for retiree health benefits | 42 | 1 | - | - | - | 43 | |||||||||||||||||||
Investments (including funds for retiree health benefits) | $ | 42 | $ | 1 | $ | - | $ | - | $ | - | $ | 43 | |||||||||||||
The fair values of the plan assets at December 31, 2013 by asset category (see Note P) are as follows: | |||||||||||||||||||||||||
(Millions of Dollars) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Equity(a) | $ | - | $ | 450 | $ | - | $ | 450 | |||||||||||||||||
Other Fixed Income Debt(b) | - | 286 | - | 286 | |||||||||||||||||||||
Cash and Cash Equivalents(c) | - | 7 | - | 7 | |||||||||||||||||||||
Total investments | $ | - | $ | 743 | $ | - | $ | 743 | |||||||||||||||||
Funds for retiree health benefits(d) | 185 | 145 | 42 | 372 | |||||||||||||||||||||
Investments(including funds for retiree health benefits) | $ | 185 | $ | 888 | $ | 42 | $ | 1,115 | |||||||||||||||||
Pending activities(e) | (2 | ) | |||||||||||||||||||||||
Total fair value of plan net assets | $ | 1,113 | |||||||||||||||||||||||
(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 Barclays Capital Aggregate 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) | Pending activities include security purchases and sales that have not settled, interest and dividends that have not been received, and reflects adjustments for available estimates at year end. | ||||||||||||||||||||||||
The table below provides a reconciliation of the beginning and ending net balances for assets at December 31, 2013 classified as Level 3 in the fair value hierarchy. | |||||||||||||||||||||||||
(Millions of Dollars) | Beginning | Assets Still Held | Assets Sold | Purchases | Transfers | Ending | |||||||||||||||||||
Balance as of | at Reporting Date – | During the | Sales and | In/(Out) of | Balance as of | ||||||||||||||||||||
January 1, 2013 | Unrealized | Year – Realized | Settlements | Level 3 | December 31, | ||||||||||||||||||||
Gains/(Losses) | Gains/(Losses) | 2013 | |||||||||||||||||||||||
Total investments | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||
Funds for retiree health benefits | 31 | 3 | - | 8 | - | 42 | |||||||||||||||||||
Investments (including funds for retiree health benefits) | $ | 31 | $ | 3 | $ | - | $ | 8 | $ | - | $ | 42 | |||||||||||||
Mortality Table Revision | |||||||||||||||||||||||||
The Companies adopted revised mortality tables effective December 31, 2014 in the measurement of its pension and other postretirement benefit plan obligations, accounting costs, and required contribution amounts as discussed in Note E. As a result of the adoption, Con Edison recognized an increase of less than $10 million in its other postretirement benefits obligation as of December 31, 2014. The Companies, under their current New York rate plans, defer as a regulatory asset or liability, as the case may be, the differences between the actual level of expenses for pension and other postretirement benefits and amounts for those expenses reflected in rates. | |||||||||||||||||||||||||
CECONY [Member] | |||||||||||||||||||||||||
Other Postretirement Benefits | Note F – Other Postretirement Benefits | ||||||||||||||||||||||||
The Utilities currently have contributory comprehensive hospital, medical and prescription drug programs for all retirees, their dependents and surviving spouses. | |||||||||||||||||||||||||
CECONY also has a contributory life insurance program for bargaining unit employees and provides basic life insurance benefits up to a specified maximum at no cost to retired management employees. O&R has a non-contributory life insurance program for retirees. Certain employees of Con Edison’s competitive energy businesses are eligible to receive benefits under these programs. | |||||||||||||||||||||||||
Net Periodic Benefit Cost | |||||||||||||||||||||||||
The components of the Companies’ net periodic postretirement benefit costs for 2014, 2013 and 2012 were as follows: | |||||||||||||||||||||||||
Con Edison | CECONY | ||||||||||||||||||||||||
(Millions of Dollars) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Service cost | $ | 19 | $ | 23 | $ | 26 | $ | 15 | $ | 18 | $ | 21 | |||||||||||||
Interest cost on accumulated other postretirement benefit obligation | 60 | 54 | 73 | 52 | 46 | 63 | |||||||||||||||||||
Expected return on plan assets | (77 | ) | (77 | ) | (85 | ) | (68 | ) | (68 | ) | (75 | ) | |||||||||||||
Recognition of net actuarial loss | 57 | 65 | 98 | 51 | 57 | 87 | |||||||||||||||||||
Recognition of prior service cost | (19 | ) | (27 | ) | (21 | ) | (15 | ) | (23 | ) | (18 | ) | |||||||||||||
Recognition of transition obligation | - | - | 2 | - | - | 2 | |||||||||||||||||||
NET PERIODIC POSTRETIREMENT BENEFIT COST | $ | 40 | $ | 38 | $ | 93 | $ | 35 | $ | 30 | $ | 80 | |||||||||||||
Cost capitalized | (15 | ) | (15 | ) | (32 | ) | (14 | ) | (12 | ) | (28 | ) | |||||||||||||
Reconciliation to rate level | 10 | 58 | 20 | 2 | 50 | 16 | |||||||||||||||||||
Cost charged to operating expenses | $ | 35 | $ | 81 | $ | 81 | $ | 23 | $ | 68 | $ | 68 | |||||||||||||
Funded Status | |||||||||||||||||||||||||
The funded status of the programs at December 31, 2014, 2013 and 2012 were as follows: | |||||||||||||||||||||||||
Con Edison | CECONY | ||||||||||||||||||||||||
(Millions of Dollars) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
CHANGE IN BENEFIT OBLIGATION | |||||||||||||||||||||||||
Benefit obligation at beginning of year | $ | 1,395 | $ | 1,454 | $ | 1,756 | $ | 1,198 | $ | 1,238 | $ | 1,511 | |||||||||||||
Service cost | 19 | 23 | 26 | 15 | 18 | 21 | |||||||||||||||||||
Interest cost on accumulated postretirement benefit obligation | 60 | 54 | 73 | 52 | 46 | 63 | |||||||||||||||||||
Amendments | (12 | ) | - | (127 | ) | - | - | (89 | ) | ||||||||||||||||
Net actuarial loss/(gain) | 47 | (42 | ) | (175 | ) | 28 | (20 | ) | (178 | ) | |||||||||||||||
Benefits paid and administrative expenses | (134 | ) | (136 | ) | (146 | ) | (125 | ) | (126 | ) | (134 | ) | |||||||||||||
Participant contributions | 36 | 38 | 37 | 35 | 38 | 36 | |||||||||||||||||||
Medicare prescription subsidy | - | 4 | 10 | - | 4 | 8 | |||||||||||||||||||
BENEFIT OBLIGATION AT END OF YEAR | $ | 1,411 | $ | 1,395 | $ | 1,454 | $ | 1,203 | $ | 1,198 | $ | 1,238 | |||||||||||||
CHANGE IN PLAN ASSETS | |||||||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 1,113 | $ | 1,047 | $ | 947 | $ | 977 | $ | 922 | $ | 840 | |||||||||||||
Actual return on plan assets | 59 | 153 | 124 | 54 | 134 | 109 | |||||||||||||||||||
Employer contributions | 7 | 9 | 83 | 7 | 9 | 71 | |||||||||||||||||||
EGWP payments | 12 | 8 | - | 11 | 7 | - | |||||||||||||||||||
Participant contributions | 36 | 38 | 37 | 35 | 38 | 36 | |||||||||||||||||||
Benefits paid | (143 | ) | (142 | ) | (144 | ) | (134 | ) | (133 | ) | (134 | ) | |||||||||||||
FAIR VALUE OF PLAN ASSETS AT END OF YEAR | $ | 1,084 | $ | 1,113 | $ | 1,047 | $ | 950 | $ | 977 | $ | 922 | |||||||||||||
FUNDED STATUS | $ | (327 | ) | $ | (282 | ) | $ | (407 | ) | $ | (253 | ) | $ | (221 | ) | $ | (316 | ) | |||||||
Unrecognized net loss | $ | 78 | $ | 70 | $ | 251 | $ | 45 | $ | 54 | $ | 197 | |||||||||||||
Unrecognized prior service costs | (71 | ) | (78 | ) | (105 | ) | (46 | ) | (61 | ) | (84 | ) | |||||||||||||
In 2012, the Utilities amended their postretirement life and health benefit plans for management employees, resulting in a reduction to the obligation of $102 million. Also in 2012, the Utilities amended the retiree contributions for supplemental postretirement life insurance for CECONY management and weekly retirees, resulting in a reduction to the obligation of $25 million. Also in 2012, the Utilities elected to change the method of receiving the subsidy under Medicare Part D for retiree prescription drug coverage from the Retiree Drug Subsidy to the Employer Group Waiver Plan (EGWP) beginning in January 2013. Participation in the EGWP allows Con Edison to offer substantially the same postretirement benefits to eligible participants while increasing subsidy reimbursements received by the plans from the Federal Government. This change was effective January 2013 and, as a result, the Utilities recognized a reduction to their postretirement health benefit obligation of $306 million as of December 31, 2012, which was recorded as an actuarial gain. | |||||||||||||||||||||||||
The increase in the other postretirement benefit plan obligation (due primarily to decreased discount rates) was the primary cause of the increased liability for other postretirement benefits at Con Edison and CECONY of $45 million and $32 million, respectively, compared with December 31, 2013. For Con Edison, this increased liability resulted in an increase to regulatory assets of $14 million for unrecognized net losses and unrecognized prior service costs associated with the Utilities consistent with the accounting rules for regulated operations, and a charge to OCI of $3 million (net of taxes) for the unrecognized net losses and an immaterial change to OCI (net of taxes) for the unrecognized prior service costs associated with the competitive energy businesses and O&R’s New Jersey subsidiary. | |||||||||||||||||||||||||
For CECONY, the increase in liability resulted in an increase to regulatory assets of $6 million for unrecognized net losses and unrecognized prior service costs associated with the company consistent with the accounting rules for regulated operations, a debit to OCI of $2 million (net of taxes) for the unrecognized net losses and an immaterial change to OCI for unrecognized prior service costs associated with the competitive energy businesses. | |||||||||||||||||||||||||
A portion of the unrecognized net losses and prior service costs for the other postretirement benefits, equal to $33 million and $(20) million, respectively, will be recognized from accumulated OCI and the regulatory asset into net periodic benefit cost over the next year for Con Edison. Included in these amounts are $29 million and $(14) million, respectively, for CECONY. | |||||||||||||||||||||||||
Assumptions | |||||||||||||||||||||||||
The actuarial assumptions were as follows: | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Weighted-average assumptions used to determine benefit obligations at December 31: | |||||||||||||||||||||||||
Discount Rate | |||||||||||||||||||||||||
CECONY | 3.75 | % | 4.5 | % | 3.75 | % | |||||||||||||||||||
O&R | 3.85 | % | 4.75 | % | 4.05 | % | |||||||||||||||||||
Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31: | |||||||||||||||||||||||||
Discount Rate | |||||||||||||||||||||||||
CECONY | 4.5 | % | 3.75 | % | 4.55 | % | |||||||||||||||||||
O&R | 4.75 | % | 4.05 | % | 4.55 | % | |||||||||||||||||||
Expected Return on Plan Assets | 7.75 | % | 7.75 | % | 8.5 | % | |||||||||||||||||||
Refer to Note E for descriptions of the basis for determining the expected return on assets, investment policies and strategies and the assumed discount rate. | |||||||||||||||||||||||||
The health care cost trend rate used to determine net periodic benefit cost for the year ended December 31, 2014 was 5.50 percent, which is assumed to decrease gradually to 4.50 percent by 2018 and remain at that level thereafter. The health care cost trend rate used to determine benefit obligations as of December 31, 2014 was 5.25 percent, which is assumed to decrease gradually to 4.50 percent by 2018 and remain at that level thereafter. | |||||||||||||||||||||||||
A one-percentage point change in the assumed health care cost trend rate would have the following effects at December 31, 2015: | |||||||||||||||||||||||||
Con Edison | CECONY | ||||||||||||||||||||||||
1-Percentage-Point | |||||||||||||||||||||||||
(Millions of Dollars) | Increase | Decrease | Increase | Decrease | |||||||||||||||||||||
Effect on accumulated other postretirement benefit obligation | $ | (21 | ) | $ | 40 | $ | (43 | ) | $ | 57 | |||||||||||||||
Effect on service cost and interest cost components for 2014 | (2 | ) | 1 | (4 | ) | 3 | |||||||||||||||||||
Expected Benefit Payments | |||||||||||||||||||||||||
Based on current assumptions, the Companies expect to make the following benefit payments over the next ten years, net of receipt of governmental subsidies: | |||||||||||||||||||||||||
(Millions of Dollars) | 2015 | 2016 | 2017 | 2018 | 2019 | 2020-2024 | |||||||||||||||||||
BENEFIT PAYMENTS | |||||||||||||||||||||||||
Con Edison | $ | 99 | $ | 95 | $ | 94 | $ | 92 | $ | 89 | $ | 419 | |||||||||||||
CECONY | 89 | 85 | 84 | 82 | 79 | 364 | |||||||||||||||||||
Expected Contributions | |||||||||||||||||||||||||
Based on estimates as of December 31, 2014, Con Edison expects to make a contribution of $6 million, nearly all of which is for CECONY, to the other postretirement benefit plans in 2015. | |||||||||||||||||||||||||
Plan Assets | |||||||||||||||||||||||||
The asset allocations for CECONY’s other postretirement benefit plans at the end of 2014, 2013 and 2012, and the target allocation for 2015 are as follows: | |||||||||||||||||||||||||
Target Allocation Range | Plan Assets at | ||||||||||||||||||||||||
December 31 | |||||||||||||||||||||||||
Asset Category | 2015 | 2014 | 2013 | 2012 | |||||||||||||||||||||
Equity Securities | 57% - 73% | 59 | % | 61 | % | 62% | |||||||||||||||||||
Debt Securities | 26% - 44% | 41 | % | 39 | % | 38% | |||||||||||||||||||
Total | 100% | 100 | % | 100 | % | 100% | |||||||||||||||||||
Con Edison has established postretirement health and life insurance benefit plan trusts for the investment of assets to be used for the exclusive purpose of providing other postretirement benefits to participants and beneficiaries. | |||||||||||||||||||||||||
Refer to Note E for a discussion of Con Edison’s investment policy for its benefit plans. | |||||||||||||||||||||||||
The fair values of the plan assets at December 31, 2014 by asset category as defined by the accounting rules for fair value measurements (see Note P) are as follows: | |||||||||||||||||||||||||
(Millions of Dollars) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Equity(a) | $ | - | $ | 428 | $ | - | $ | 428 | |||||||||||||||||
Other Fixed Income Debt(b) | - | 286 | - | 286 | |||||||||||||||||||||
Cash and Cash Equivalents(c) | - | 11 | - | 11 | |||||||||||||||||||||
Total investments | $ | - | $ | 725 | $ | - | $ | 725 | |||||||||||||||||
Funds for retiree health benefits(d) | 184 | 131 | 43 | 358 | |||||||||||||||||||||
Investments(including funds for retiree health benefits) | $ | 184 | $ | 856 | $ | 43 | $ | 1,083 | |||||||||||||||||
Pending activities(e) | 1 | ||||||||||||||||||||||||
Total fair value of plan net assets | $ | 1,084 | |||||||||||||||||||||||
(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 Barclays Capital Aggregate 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) | Pending activities include security purchases and sales that have not settled, interest and dividends that have not been received, and reflects adjustments for available estimates at year end. | ||||||||||||||||||||||||
The table below provides a reconciliation of the beginning and ending net balances for assets at December 31, 2014 classified as Level 3 in the fair value hierarchy. | |||||||||||||||||||||||||
(Millions of Dollars) | Beginning | Assets Still Held | Assets Sold | Purchases | Transfers | Ending | |||||||||||||||||||
Balance as of | at Reporting Date – | During the | Sales and | In/(Out) of | Balance as of | ||||||||||||||||||||
January 1, 2014 | Unrealized | Year – Realized | Settlements | Level 3 | December 31, | ||||||||||||||||||||
Gains/(Losses) | Gains/(Losses) | 2014 | |||||||||||||||||||||||
Total investments | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||
Funds for retiree health benefits | 42 | 1 | - | - | - | 43 | |||||||||||||||||||
Investments (including funds for retiree health benefits) | $ | 42 | $ | 1 | $ | - | $ | - | $ | - | $ | 43 | |||||||||||||
The fair values of the plan assets at December 31, 2013 by asset category (see Note P) are as follows: | |||||||||||||||||||||||||
(Millions of Dollars) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Equity(a) | $ | - | $ | 450 | $ | - | $ | 450 | |||||||||||||||||
Other Fixed Income Debt(b) | - | 286 | - | 286 | |||||||||||||||||||||
Cash and Cash Equivalents(c) | - | 7 | - | 7 | |||||||||||||||||||||
Total investments | $ | - | $ | 743 | $ | - | $ | 743 | |||||||||||||||||
Funds for retiree health benefits(d) | 185 | 145 | 42 | 372 | |||||||||||||||||||||
Investments(including funds for retiree health benefits) | $ | 185 | $ | 888 | $ | 42 | $ | 1,115 | |||||||||||||||||
Pending activities(e) | (2 | ) | |||||||||||||||||||||||
Total fair value of plan net assets | $ | 1,113 | |||||||||||||||||||||||
(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 Barclays Capital Aggregate 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) | Pending activities include security purchases and sales that have not settled, interest and dividends that have not been received, and reflects adjustments for available estimates at year end. | ||||||||||||||||||||||||
The table below provides a reconciliation of the beginning and ending net balances for assets at December 31, 2013 classified as Level 3 in the fair value hierarchy. | |||||||||||||||||||||||||
(Millions of Dollars) | Beginning | Assets Still Held | Assets Sold | Purchases | Transfers | Ending | |||||||||||||||||||
Balance as of | at Reporting Date – | During the | Sales and | In/(Out) of | Balance as of | ||||||||||||||||||||
January 1, 2013 | Unrealized | Year – Realized | Settlements | Level 3 | December 31, | ||||||||||||||||||||
Gains/(Losses) | Gains/(Losses) | 2013 | |||||||||||||||||||||||
Total investments | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||
Funds for retiree health benefits | 31 | 3 | - | 8 | - | 42 | |||||||||||||||||||
Investments (including funds for retiree health benefits) | $ | 31 | $ | 3 | $ | - | $ | 8 | $ | - | $ | 42 | |||||||||||||
Mortality Table Revision | |||||||||||||||||||||||||
The Companies adopted revised mortality tables effective December 31, 2014 in the measurement of its pension and other postretirement benefit plan obligations, accounting costs, and required contribution amounts as discussed in Note E. As a result of the adoption, Con Edison recognized an increase of less than $10 million in its other postretirement benefits obligation as of December 31, 2014. The Companies, under their current New York rate plans, defer as a regulatory asset or liability, as the case may be, the differences between the actual level of expenses for pension and other postretirement benefits and amounts for those expenses reflected in rates. |
Environmental_Matters
Environmental Matters | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Environmental Matters | Note G – Environmental Matters | ||||||||||||||||
Superfund Sites | |||||||||||||||||
Hazardous substances, such as asbestos, polychlorinated biphenyls (PCBs) and coal tar, have been used or generated in the course of operations of the Utilities and their predecessors and are present at sites and in facilities and equipment they currently or previously owned, including sites at which gas was manufactured or stored. | |||||||||||||||||
The Federal Comprehensive Environmental Response, Compensation and Liability Act of 1980 and similar state statutes (Superfund) impose joint and several liability, regardless of fault, upon generators of hazardous substances for investigation and remediation costs (which include costs of demolition, removal, disposal, storage, replacement, containment, and monitoring) and natural resource damages. Liability under these laws can be material and may be imposed for contamination from past acts, even though such past acts may have been lawful at the time they occurred. The sites at which the Utilities have been asserted to have liability under these laws, including their manufactured gas plant sites and any neighboring areas to which contamination may have migrated, are referred to herein as “Superfund Sites.” | |||||||||||||||||
For Superfund Sites where there are other potentially responsible parties and the Utilities are not managing the site investigation and remediation, the accrued liability represents an estimate of the amount the Utilities will need to pay to investigate and, where determinable, discharge their related obligations. For Superfund Sites (including the manufactured gas plant sites) for which one of the Utilities is managing the investigation and remediation, the accrued liability represents an estimate of the company’s share of the undiscounted cost to investigate the sites and, for sites that have been investigated in whole or in part, the cost to remediate the sites, if remediation is necessary and if a reasonable estimate of such cost can be made. Remediation costs are estimated in light of the information available, applicable remediation standards and experience with similar sites. | |||||||||||||||||
The accrued liabilities and regulatory assets related to Superfund Sites at December 31, 2014 and 2013 were as follows: | |||||||||||||||||
Con Edison | CECONY | ||||||||||||||||
(Millions of Dollars) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Accrued Liabilities: | |||||||||||||||||
Manufactured gas plant sites | $ | 684 | $ | 665 | $ | 587 | $ | 562 | |||||||||
Other Superfund Sites | 80 | 84 | 79 | 82 | |||||||||||||
Total | $ | 764 | $ | 749 | $ | 666 | $ | 644 | |||||||||
Regulatory assets | $ | 925 | $ | 938 | $ | 820 | $ | 830 | |||||||||
Most of the accrued Superfund Site liability relates to sites that have been investigated, in whole or in part. However, for some of the sites, the extent and associated cost of the required remediation has not yet been determined. As investigations progress and information pertaining to the required remediation becomes available, the Utilities expect that additional liability may be accrued, the amount of which is not presently determinable but may be material. Con Edison and CECONY estimate that in 2015 they will incur costs for remediation of approximately $39 million and $35 million, respectively. The Companies are unable to estimate the time period over which the remaining accrued liability will be incurred because, among other things, the required remediation has not been determined for some of the sites. Under their current rate plans, 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 and insurance recoveries received related to Superfund Sites at December 31, 2014 and 2013 were as follows: | |||||||||||||||||
Con Edison | CECONY | ||||||||||||||||
(Millions of Dollars) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Remediation costs incurred | $ | 29 | $ | 41 | $ | 20 | $ | 35 | |||||||||
Insurance recoveries received* | 7 | - | 7 | - | |||||||||||||
* | Reduced amount deferred for recovery from customers | ||||||||||||||||
In 2014, Con Edison and CECONY estimated that for their manufactured gas plant sites (including CECONY’s Astoria site), the aggregate undiscounted potential liability for the investigation and remediation of coal tar and/or other environmental contaminants could range up to $2.7 billion and $2.5 billion, respectively. These estimates were based on the assumption that there is contamination at all sites, including those that have not yet been fully investigated and additional assumptions about the extent of the contamination and the type and extent of the remediation that may be required. Actual experience may be materially different. | |||||||||||||||||
Asbestos Proceedings | |||||||||||||||||
Suits have been brought in New York State and federal courts against the Utilities and many other defendants, wherein a large number of plaintiffs sought large amounts of compensatory and punitive damages for deaths and injuries allegedly caused by exposure to asbestos at various premises of the Utilities. The suits that have been resolved, which are many, have been resolved without any payment by the Utilities, or for amounts that were not, in the aggregate, material to them. The amounts specified in all the remaining thousands of suits total billions of dollars; however, the Utilities believe that these amounts are greatly exaggerated, based on the disposition of previous claims. At December 31, 2014 and 2013, Con Edison and CECONY had accrued their estimated aggregate undiscounted potential liabilities for these suits and additional suits that may be brought over the next 15 years of $8 million and $7 million, respectively. The estimates were based upon a combination of modeling, historical data analysis and risk factor assessment. Trial courts have begun, and unless otherwise determined by an appellate court may continue, to apply a different standard for determining liability in asbestos suits than the standard that applied historically. As a result, the Companies currently believe that there is a reasonable possibility of an exposure to loss in excess of the liability accrued for the suits. The Companies are unable to estimate the amount or range of such loss. 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 plans, CECONY is permitted to defer as regulatory assets (for subsequent recovery through rates) costs incurred for its asbestos lawsuits and workers’ compensation claims. The accrued liability for asbestos suits and workers’ compensation proceedings (including those related to asbestos exposure) and the amounts deferred as regulatory assets for the Companies at December 31, 2014 and 2013 were as follows: | |||||||||||||||||
Con Edison | CECONY | ||||||||||||||||
(Millions of Dollars) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Accrued liability – asbestos suits | $ | 8 | $ | 8 | $ | 7 | $ | 7 | |||||||||
Regulatory assets – asbestos suits | $ | 8 | $ | 8 | $ | 7 | $ | 7 | |||||||||
Accrued liability – workers’ compensation | $ | 83 | $ | 87 | $ | 78 | $ | 82 | |||||||||
Regulatory assets – workers’ compensation | $ | 8 | $ | 12 | $ | 8 | $ | 12 | |||||||||
CECONY [Member] | |||||||||||||||||
Environmental Matters | Note G – Environmental Matters | ||||||||||||||||
Superfund Sites | |||||||||||||||||
Hazardous substances, such as asbestos, polychlorinated biphenyls (PCBs) and coal tar, have been used or generated in the course of operations of the Utilities and their predecessors and are present at sites and in facilities and equipment they currently or previously owned, including sites at which gas was manufactured or stored. | |||||||||||||||||
The Federal Comprehensive Environmental Response, Compensation and Liability Act of 1980 and similar state statutes (Superfund) impose joint and several liability, regardless of fault, upon generators of hazardous substances for investigation and remediation costs (which include costs of demolition, removal, disposal, storage, replacement, containment, and monitoring) and natural resource damages. Liability under these laws can be material and may be imposed for contamination from past acts, even though such past acts may have been lawful at the time they occurred. The sites at which the Utilities have been asserted to have liability under these laws, including their manufactured gas plant sites and any neighboring areas to which contamination may have migrated, are referred to herein as “Superfund Sites.” | |||||||||||||||||
For Superfund Sites where there are other potentially responsible parties and the Utilities are not managing the site investigation and remediation, the accrued liability represents an estimate of the amount the Utilities will need to pay to investigate and, where determinable, discharge their related obligations. For Superfund Sites (including the manufactured gas plant sites) for which one of the Utilities is managing the investigation and remediation, the accrued liability represents an estimate of the company’s share of the undiscounted cost to investigate the sites and, for sites that have been investigated in whole or in part, the cost to remediate the sites, if remediation is necessary and if a reasonable estimate of such cost can be made. Remediation costs are estimated in light of the information available, applicable remediation standards and experience with similar sites. | |||||||||||||||||
The accrued liabilities and regulatory assets related to Superfund Sites at December 31, 2014 and 2013 were as follows: | |||||||||||||||||
Con Edison | CECONY | ||||||||||||||||
(Millions of Dollars) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Accrued Liabilities: | |||||||||||||||||
Manufactured gas plant sites | $ | 684 | $ | 665 | $ | 587 | $ | 562 | |||||||||
Other Superfund Sites | 80 | 84 | 79 | 82 | |||||||||||||
Total | $ | 764 | $ | 749 | $ | 666 | $ | 644 | |||||||||
Regulatory assets | $ | 925 | $ | 938 | $ | 820 | $ | 830 | |||||||||
Most of the accrued Superfund Site liability relates to sites that have been investigated, in whole or in part. However, for some of the sites, the extent and associated cost of the required remediation has not yet been determined. As investigations progress and information pertaining to the required remediation becomes available, the Utilities expect that additional liability may be accrued, the amount of which is not presently determinable but may be material. Con Edison and CECONY estimate that in 2015 they will incur costs for remediation of approximately $39 million and $35 million, respectively. The Companies are unable to estimate the time period over which the remaining accrued liability will be incurred because, among other things, the required remediation has not been determined for some of the sites. Under their current rate plans, 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 and insurance recoveries received related to Superfund Sites at December 31, 2014 and 2013 were as follows: | |||||||||||||||||
Con Edison | CECONY | ||||||||||||||||
(Millions of Dollars) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Remediation costs incurred | $ | 29 | $ | 41 | $ | 20 | $ | 35 | |||||||||
Insurance recoveries received* | 7 | - | 7 | - | |||||||||||||
* | Reduced amount deferred for recovery from customers | ||||||||||||||||
In 2014, Con Edison and CECONY estimated that for their manufactured gas plant sites (including CECONY’s Astoria site), the aggregate undiscounted potential liability for the investigation and remediation of coal tar and/or other environmental contaminants could range up to $2.7 billion and $2.5 billion, respectively. These estimates were based on the assumption that there is contamination at all sites, including those that have not yet been fully investigated and additional assumptions about the extent of the contamination and the type and extent of the remediation that may be required. Actual experience may be materially different. | |||||||||||||||||
Asbestos Proceedings | |||||||||||||||||
Suits have been brought in New York State and federal courts against the Utilities and many other defendants, wherein a large number of plaintiffs sought large amounts of compensatory and punitive damages for deaths and injuries allegedly caused by exposure to asbestos at various premises of the Utilities. The suits that have been resolved, which are many, have been resolved without any payment by the Utilities, or for amounts that were not, in the aggregate, material to them. The amounts specified in all the remaining thousands of suits total billions of dollars; however, the Utilities believe that these amounts are greatly exaggerated, based on the disposition of previous claims. At December 31, 2014 and 2013, Con Edison and CECONY had accrued their estimated aggregate undiscounted potential liabilities for these suits and additional suits that may be brought over the next 15 years of $8 million and $7 million, respectively. The estimates were based upon a combination of modeling, historical data analysis and risk factor assessment. Trial courts have begun, and unless otherwise determined by an appellate court may continue, to apply a different standard for determining liability in asbestos suits than the standard that applied historically. As a result, the Companies currently believe that there is a reasonable possibility of an exposure to loss in excess of the liability accrued for the suits. The Companies are unable to estimate the amount or range of such loss. 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 plans, CECONY is permitted to defer as regulatory assets (for subsequent recovery through rates) costs incurred for its asbestos lawsuits and workers’ compensation claims. The accrued liability for asbestos suits and workers’ compensation proceedings (including those related to asbestos exposure) and the amounts deferred as regulatory assets for the Companies at December 31, 2014 and 2013 were as follows: | |||||||||||||||||
Con Edison | CECONY | ||||||||||||||||
(Millions of Dollars) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Accrued liability – asbestos suits | $ | 8 | $ | 8 | $ | 7 | $ | 7 | |||||||||
Regulatory assets – asbestos suits | $ | 8 | $ | 8 | $ | 7 | $ | 7 | |||||||||
Accrued liability – workers’ compensation | $ | 83 | $ | 87 | $ | 78 | $ | 82 | |||||||||
Regulatory assets – workers’ compensation | $ | 8 | $ | 12 | $ | 8 | $ | 12 | |||||||||
Other_Material_Contingencies
Other Material Contingencies | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Other Material Contingencies | Note H – Other Material Contingencies | ||||||||||||||||
Manhattan Steam Main Rupture | |||||||||||||||||
In July 2007, a CECONY steam main located in midtown Manhattan ruptured. It has been reported that one person died and others were injured as a result of the incident. Several buildings in the area were damaged. Debris from the incident included dirt and mud containing asbestos. The response to the incident required the closing of several buildings and streets for various periods. Approximately ninety 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 notified its insurers of the incident and believes that the policies in force at the time of the incident will cover the company’s costs to satisfy its liability to others in connection with the suits. In the company’s estimation, there is not a reasonable possibility that an exposure to loss exists for the suits that is materially in excess of the estimated liability accrued. At December 31, 2014, the company has accrued its estimated liability for the suits of $50 million and an insurance receivable in the same amount. | |||||||||||||||||
Manhattan Explosion and Fire | |||||||||||||||||
On March 12, 2014, two multi-use five-story tall buildings located on Park Avenue between 116th and 117th Street in Manhattan were destroyed by an explosion and fire. CECONY had delivered gas to the buildings through service lines from a distribution main located below ground on Park Avenue. Eight people died and more than 48 people were injured. Additional buildings were also damaged. The National Transportation Safety Board is investigating. The parties to the investigation include the company, the City of New York, the Pipeline and Hazardous Materials Safety Administration and the NYSPSC (which is also conducting an investigation). Approximately thirty suits are pending against the company seeking generally unspecified damages and, in one case, punitive damages, for personal injury, property damage and business interruption. The company has notified its insurers of the incident and believes that the policies in force at the time of the incident will cover the company’s costs, in excess of a required retention (the amount of which is not material), to satisfy any liability it may have for damages in connection with the incident. The company is unable to estimate the amount or range of its possible loss related to the incident. At December 31, 2014, the company had not accrued a liability for the incident. | |||||||||||||||||
Other Contingencies | |||||||||||||||||
See “Other Regulatory Matters” in Note B. | |||||||||||||||||
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 $2,547 million and $1,331 million at December 31, 2014 and 2013, respectively. | |||||||||||||||||
A summary, by type and term, of Con Edison’s total guarantees at December 31, 2014 is as follows: | |||||||||||||||||
Guarantee Type | 0 – 3 | 4 – 10 | > 10 | Total | |||||||||||||
years | years | years | |||||||||||||||
(Millions of Dollars) | |||||||||||||||||
NY Transco | $ | 1,361 | $ | - | $ | - | $ | 1,361 | |||||||||
Energy transactions | 774 | 31 | 96 | 901 | |||||||||||||
Renewable electric production projects | 248 | - | 7 | 255 | |||||||||||||
Other | 30 | - | - | 30 | |||||||||||||
Total | $ | 2,413 | $ | 31 | $ | 103 | $ | 2,547 | |||||||||
NY Transco – Con Edison has guaranteed payment by its subsidiary, Con Edison Transmission, of the contributions it agreed to make in New York Transco LLC (NY Transco). Con Edison Transmission acquired a 46 percent interest in NY Transco when it was formed in 2014. NY Transco’s transmission projects are expected to be developed initially by CECONY and other New York transmission owners and then sold to NY Transco. The development and sale of the projects would be subject to authorizations from the NYSPSC, FERC and other federal, state and local agencies. Guarantee amount shown is for the maximum possible required amount of Con Edison Transmission’s contributions, which assumed that all the NY Transco projects proposed when NY Transco was formed receive all required regulatory approvals and are completed at 175 percent of their estimated costs and that NY Transco does not use any debt financing for the projects. Guarantee term shown is assumed as the timing of the contributions is not known. | |||||||||||||||||
Energy Transactions – Con Edison guarantees payments on behalf of its competitive energy businesses in order to facilitate physical and financial transactions in gas, pipeline capacity, transportation, oil, electricity, renewable energy credits and energy services. To the extent that liabilities exist under the contracts subject to these guarantees, such liabilities are included in Con Edison’s consolidated balance sheet. | |||||||||||||||||
Renewable Electric Production Projects – Con Edison and Con Edison Development guarantee payments associated with the investment in solar and wind energy facilities on behalf of their wholly-owned subsidiaries. In addition, Con Edison Development has entered into two guarantees ($63 million maximum and $31 million maximum, respectively) on behalf of entities (Copper Mountain Solar 2 and Copper Mountain Solar 3, respectively) in which it has a 50 percent interest (see Note Q) in connection with the construction of solar energy facilities. Con Edison Development also provided $3 million in guarantees to Travelers Insurance Company for indemnity agreements for surety bonds in connection with the construction and operation of solar energy facilities performed by its subsidiaries. | |||||||||||||||||
Other – Other guarantees primarily relate to guarantees provided by Con Edison to Travelers Insurance Company for indemnity agreements for surety bonds in connection with energy service projects performed by Con Edison Solutions ($25 million). In addition, Con Edison issued a guarantee to the Public Utility Commission of Texas covering obligations of Con Edison Solutions as a retail electric provider. Con Edison’s estimate of the maximum potential obligation for this guarantee is $5 million as of December 31, 2014. | |||||||||||||||||
CECONY [Member] | |||||||||||||||||
Other Material Contingencies | Note H – Other Material Contingencies | ||||||||||||||||
Manhattan Steam Main Rupture | |||||||||||||||||
In July 2007, a CECONY steam main located in midtown Manhattan ruptured. It has been reported that one person died and others were injured as a result of the incident. Several buildings in the area were damaged. Debris from the incident included dirt and mud containing asbestos. The response to the incident required the closing of several buildings and streets for various periods. Approximately ninety 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 notified its insurers of the incident and believes that the policies in force at the time of the incident will cover the company’s costs to satisfy its liability to others in connection with the suits. In the company’s estimation, there is not a reasonable possibility that an exposure to loss exists for the suits that is materially in excess of the estimated liability accrued. At December 31, 2014, the company has accrued its estimated liability for the suits of $50 million and an insurance receivable in the same amount. | |||||||||||||||||
Manhattan Explosion and Fire | |||||||||||||||||
On March 12, 2014, two multi-use five-story tall buildings located on Park Avenue between 116th and 117th Street in Manhattan were destroyed by an explosion and fire. CECONY had delivered gas to the buildings through service lines from a distribution main located below ground on Park Avenue. Eight people died and more than 48 people were injured. Additional buildings were also damaged. The National Transportation Safety Board is investigating. The parties to the investigation include the company, the City of New York, the Pipeline and Hazardous Materials Safety Administration and the NYSPSC (which is also conducting an investigation). Approximately thirty suits are pending against the company seeking generally unspecified damages and, in one case, punitive damages, for personal injury, property damage and business interruption. The company has notified its insurers of the incident and believes that the policies in force at the time of the incident will cover the company’s costs, in excess of a required retention (the amount of which is not material), to satisfy any liability it may have for damages in connection with the incident. The company is unable to estimate the amount or range of its possible loss related to the incident. At December 31, 2014, the company had not accrued a liability for the incident. | |||||||||||||||||
Other Contingencies | |||||||||||||||||
See “Other Regulatory Matters” in Note B. | |||||||||||||||||
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 $2,547 million and $1,331 million at December 31, 2014 and 2013, respectively. | |||||||||||||||||
A summary, by type and term, of Con Edison’s total guarantees at December 31, 2014 is as follows: | |||||||||||||||||
Guarantee Type | 0 – 3 | 4 – 10 | > 10 | Total | |||||||||||||
years | years | years | |||||||||||||||
(Millions of Dollars) | |||||||||||||||||
NY Transco | $ | 1,361 | $ | - | $ | - | $ | 1,361 | |||||||||
Energy transactions | 774 | 31 | 96 | 901 | |||||||||||||
Renewable electric production projects | 248 | - | 7 | 255 | |||||||||||||
Other | 30 | - | - | 30 | |||||||||||||
Total | $ | 2,413 | $ | 31 | $ | 103 | $ | 2,547 | |||||||||
NY Transco – Con Edison has guaranteed payment by its subsidiary, Con Edison Transmission, of the contributions it agreed to make in New York Transco LLC (NY Transco). Con Edison Transmission acquired a 46 percent interest in NY Transco when it was formed in 2014. NY Transco’s transmission projects are expected to be developed initially by CECONY and other New York transmission owners and then sold to NY Transco. The development and sale of the projects would be subject to authorizations from the NYSPSC, FERC and other federal, state and local agencies. Guarantee amount shown is for the maximum possible required amount of Con Edison Transmission’s contributions, which assumed that all the NY Transco projects proposed when NY Transco was formed receive all required regulatory approvals and are completed at 175 percent of their estimated costs and that NY Transco does not use any debt financing for the projects. Guarantee term shown is assumed as the timing of the contributions is not known. | |||||||||||||||||
Energy Transactions – Con Edison guarantees payments on behalf of its competitive energy businesses in order to facilitate physical and financial transactions in gas, pipeline capacity, transportation, oil, electricity, renewable energy credits and energy services. To the extent that liabilities exist under the contracts subject to these guarantees, such liabilities are included in Con Edison’s consolidated balance sheet. | |||||||||||||||||
Renewable Electric Production Projects – Con Edison and Con Edison Development guarantee payments associated with the investment in solar and wind energy facilities on behalf of their wholly-owned subsidiaries. In addition, Con Edison Development has entered into two guarantees ($63 million maximum and $31 million maximum, respectively) on behalf of entities (Copper Mountain Solar 2 and Copper Mountain Solar 3, respectively) in which it has a 50 percent interest (see Note Q) in connection with the construction of solar energy facilities. Con Edison Development also provided $3 million in guarantees to Travelers Insurance Company for indemnity agreements for surety bonds in connection with the construction and operation of solar energy facilities performed by its subsidiaries. | |||||||||||||||||
Other – Other guarantees primarily relate to guarantees provided by Con Edison to Travelers Insurance Company for indemnity agreements for surety bonds in connection with energy service projects performed by Con Edison Solutions ($25 million). In addition, Con Edison issued a guarantee to the Public Utility Commission of Texas covering obligations of Con Edison Solutions as a retail electric provider. Con Edison’s estimate of the maximum potential obligation for this guarantee is $5 million as of December 31, 2014. |
Electricity_Purchase_Agreement
Electricity Purchase Agreements | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Electricity Purchase Agreements | Note I – Electricity Purchase Agreements | ||||||||||||||||||||||||
CECONY has long-term electricity purchase agreements with non-utility generators and others for generating capacity. The company recovers its purchased power costs in accordance with provisions approved by the NYSPSC. See “Recoverable Energy Costs” in Note A. | |||||||||||||||||||||||||
At December 31, 2014, the significant terms of the electricity purchase agreements were as follows: | |||||||||||||||||||||||||
Facility | Equity Owner | Plant | Contracted | Contract | Contract | ||||||||||||||||||||
Output | Output | Start | Term | ||||||||||||||||||||||
(MW) | (MW) | Date | (Years) | ||||||||||||||||||||||
Brooklyn Navy Yard | Brooklyn Navy Yard Cogeneration Partners, LP | 322 | 291 | November 1996 | 40 | ||||||||||||||||||||
Linden Cogeneration | Cogen Technologies Linden Venture, LP | 1,035 | 607 | May-92 | 25 | ||||||||||||||||||||
Indeck Corinth | Indeck Energy Services of Corinth, Inc. | 147 | 131 | Jul-95 | 20 | ||||||||||||||||||||
Indian Point | Entergy Nuclear Power Marketing, LLC | 2,311 | 500 | August 2001 | 16 | ||||||||||||||||||||
Astoria Energy | Astoria Energy, LLC | 640 | 500 | May-06 | 10 | ||||||||||||||||||||
Assuming performance by the parties to the electricity purchase agreements, CECONY is obligated over the terms of the agreements to make capacity and other fixed payments. | |||||||||||||||||||||||||
The future capacity and other fixed payments under the contracts are estimated to be as follows: | |||||||||||||||||||||||||
(Millions of | 2015 | 2016 | 2017 | 2018 | 2019 | All Years | |||||||||||||||||||
Dollars) | Thereafter | ||||||||||||||||||||||||
CECONY | $ | 252 | $ | 186 | $ | 135 | $ | 62 | $ | 53 | $ | 820 | |||||||||||||
For energy delivered under most of the electricity purchase agreements, CECONY is obligated to pay variable prices. The company’s payments under the agreements for capacity, energy and other fixed payments in 2014, 2013 and 2012 were as follows: | |||||||||||||||||||||||||
For the Years Ended | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
(Millions of Dollars) | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Brooklyn Navy Yard | $ | 133 | $ | 118 | $ | 93 | |||||||||||||||||||
Linden Cogeneration | 381 | 346 | 297 | ||||||||||||||||||||||
Indeck Corinth | 80 | 79 | 66 | ||||||||||||||||||||||
Indian Point | 247 | 220 | 204 | ||||||||||||||||||||||
Astoria Energy | 230 | 183 | 181 | ||||||||||||||||||||||
Selkirk* | 144 | 215 | 196 | ||||||||||||||||||||||
Independence* | 97 | 121 | 127 | ||||||||||||||||||||||
Total | $ | 1,312 | $ | 1,282 | $ | 1,164 | |||||||||||||||||||
* | Contract term ended in 2014 | ||||||||||||||||||||||||
CECONY [Member] | |||||||||||||||||||||||||
Electricity Purchase Agreements | Note I – Electricity Purchase Agreements | ||||||||||||||||||||||||
CECONY has long-term electricity purchase agreements with non-utility generators and others for generating capacity. The company recovers its purchased power costs in accordance with provisions approved by the NYSPSC. See “Recoverable Energy Costs” in Note A. | |||||||||||||||||||||||||
At December 31, 2014, the significant terms of the electricity purchase agreements were as follows: | |||||||||||||||||||||||||
Facility | Equity Owner | Plant | Contracted | Contract | Contract | ||||||||||||||||||||
Output | Output | Start | Term | ||||||||||||||||||||||
(MW) | (MW) | Date | (Years) | ||||||||||||||||||||||
Brooklyn Navy Yard | Brooklyn Navy Yard Cogeneration Partners, LP | 322 | 291 | November 1996 | 40 | ||||||||||||||||||||
Linden Cogeneration | Cogen Technologies Linden Venture, LP | 1,035 | 607 | May-92 | 25 | ||||||||||||||||||||
Indeck Corinth | Indeck Energy Services of Corinth, Inc. | 147 | 131 | Jul-95 | 20 | ||||||||||||||||||||
Indian Point | Entergy Nuclear Power Marketing, LLC | 2,311 | 500 | August 2001 | 16 | ||||||||||||||||||||
Astoria Energy | Astoria Energy, LLC | 640 | 500 | May-06 | 10 | ||||||||||||||||||||
Assuming performance by the parties to the electricity purchase agreements, CECONY is obligated over the terms of the agreements to make capacity and other fixed payments. | |||||||||||||||||||||||||
The future capacity and other fixed payments under the contracts are estimated to be as follows: | |||||||||||||||||||||||||
(Millions of | 2015 | 2016 | 2017 | 2018 | 2019 | All Years | |||||||||||||||||||
Dollars) | Thereafter | ||||||||||||||||||||||||
CECONY | $ | 252 | $ | 186 | $ | 135 | $ | 62 | $ | 53 | $ | 820 | |||||||||||||
For energy delivered under most of the electricity purchase agreements, CECONY is obligated to pay variable prices. The company’s payments under the agreements for capacity, energy and other fixed payments in 2014, 2013 and 2012 were as follows: | |||||||||||||||||||||||||
For the Years Ended | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
(Millions of Dollars) | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Brooklyn Navy Yard | $ | 133 | $ | 118 | $ | 93 | |||||||||||||||||||
Linden Cogeneration | 381 | 346 | 297 | ||||||||||||||||||||||
Indeck Corinth | 80 | 79 | 66 | ||||||||||||||||||||||
Indian Point | 247 | 220 | 204 | ||||||||||||||||||||||
Astoria Energy | 230 | 183 | 181 | ||||||||||||||||||||||
Selkirk* | 144 | 215 | 196 | ||||||||||||||||||||||
Independence* | 97 | 121 | 127 | ||||||||||||||||||||||
Total | $ | 1,312 | $ | 1,282 | $ | 1,164 | |||||||||||||||||||
* | Contract term ended in 2014 |
Leases
Leases | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Leases | Note J – Leases | ||||||||||||||||
Con Edison’s subsidiaries lease electric transmission facilities, gas distribution facilities, land, office buildings and equipment. In accordance with the accounting rules for leases, these leases are classified as either capital leases or operating leases. Most of the operating leases provide the option to renew at the fair rental value for future periods. Generally, it is expected that leases will be renewed or replaced in the normal course of business. | |||||||||||||||||
Capital leases: For ratemaking purposes capital leases are treated as operating leases; therefore, in accordance with the accounting rules for regulated operations, the amortization of the leased asset is based on the rental payments recovered from customers. The following assets under capital leases are included in the Companies’ consolidated balance sheets at December 31, 2014 and 2013: | |||||||||||||||||
Con Edison | CECONY | ||||||||||||||||
(Millions of Dollars) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
UTILITY PLANT | |||||||||||||||||
Common | $ | 3 | $ | 3 | $ | 1 | $ | 2 | |||||||||
The accumulated amortization of the capital leases for Con Edison and CECONY was $1.8 million and $0.8 million, respectively at December 31, 2014, and $1.0 million and $0.6 million, respectively at December 31, 2013. | |||||||||||||||||
The future minimum lease commitments for the above assets are as follows: | |||||||||||||||||
(Millions of Dollars) | Con Edison | CECONY | |||||||||||||||
2015 | $ | 1 | $ | 1 | |||||||||||||
2016 | 1 | 1 | |||||||||||||||
2017 | - | - | |||||||||||||||
2018 | - | - | |||||||||||||||
2019 | - | - | |||||||||||||||
All years thereafter | - | - | |||||||||||||||
Total | 2 | 2 | |||||||||||||||
Less: amount representing interest | 1 | 1 | |||||||||||||||
Present value of net minimum lease payment | $ | 1 | $ | 1 | |||||||||||||
Operating leases: The future minimum lease commitments under the Companies’ non-cancelable operating lease agreements are as follows: | |||||||||||||||||
(Millions of Dollars) | Con Edison | CECONY | |||||||||||||||
2015 | $ | 18 | $ | 14 | |||||||||||||
2016 | 17 | 13 | |||||||||||||||
2017 | 16 | 12 | |||||||||||||||
2018 | 16 | 12 | |||||||||||||||
2019 | 14 | 10 | |||||||||||||||
All years thereafter | 72 | 51 | |||||||||||||||
Total | $ | 153 | $ | 112 | |||||||||||||
Lease In/Lease Out Transactions | |||||||||||||||||
In each of 1997 and 1999, Con Edison Development entered into transactions in which it leased property and then immediately subleased the properties back to the lessor (termed “Lease In/Lease Out,” or LILO transactions). The transactions respectively involved electric generating and gas distribution facilities in the Netherlands, with a total investment of $259 million. The transactions were financed with $93 million of equity and $166 million of non-recourse, long-term debt secured by the underlying assets. In accordance with the accounting rules for leases, Con Edison accounted for the two LILO transactions as leveraged leases. Accordingly, the company’s investment in these leases, net of non-recourse debt, was carried as a single amount in Con Edison’s consolidated balance sheet and income was recognized pursuant to a method that incorporated a level rate of return for those years when net investment in the lease was positive. At December 31, 2012, the company’s net investment in the LILO transactions was $(76) million, comprised of a $228 million gross investment less $304 million of deferred tax liabilities. During 2013, as discussed below, the company terminated its LILO transactions and at December 31, 2013 no longer had an investment recorded for these leases in its consolidated balance sheet. | |||||||||||||||||
On audit of Con Edison’s tax returns, the Internal Revenue Service (IRS) disallowed tax losses in connection with the 1997 LILO transactions. In October 2009, the United States Court of Federal Claims issued a decision in favor of the company which, among other things, concluded that the tax losses claimed by the company were allowable. In January 2013, the United States Court of Appeals for the Federal Circuit reversed the October 2009 trial court decision. In June 2013, Con Edison entered into a closing agreement with the IRS regarding the 1997 and 1999 LILO transactions. | |||||||||||||||||
As a result of the January 2013 Court of Appeals decision, in 2013, Con Edison recorded an after-tax charge of $150 million to reflect, as required by the accounting rules for leveraged lease transactions, the recalculation of the accounting effect of the LILO transactions based on the revised after-tax cash flows projected from the inception of the leveraged leases as well as the interest on the potential tax liability resulting from the disallowance of federal and state income tax losses for the LILO transactions. Also, in 2013, the LILO transactions were terminated, as a result of which the company realized a $55 million gain (after-tax). In 2014, adjustments were made to the interest accrued on the liability and the related taxes resulting in a decrease to net income of $1 million. | |||||||||||||||||
The effect on Con Edison’s consolidated income statement for the twelve months ended as of December 31, 2014 and 2013 was as follows: | |||||||||||||||||
For the Years Ended | |||||||||||||||||
December 31, | |||||||||||||||||
(Millions of Dollars) | 2014 | 2013 | |||||||||||||||
Increase/(decrease) to non-utility operating revenues | $ | - | $ | (27 | ) | ||||||||||||
(Increase)/decrease to other interest expense | 13 | (131 | ) | ||||||||||||||
Income tax benefit/(expense) | -14 | 63 | |||||||||||||||
Total increase/(decrease) in net income | ($1) | ($95) | |||||||||||||||
The transactions did not impact earnings in 2012. | |||||||||||||||||
In January 2013, to defray interest charges, the company deposited $447 million with federal and state tax agencies relating primarily to the potential tax liability from the LILO transactions in past tax years and interest thereon. During 2013, $125 million of the deposit was returned from the IRS at the company’s request. Also in 2013, the deposit balance was reduced by an additional $48 million, due to a $10 million refund from the IRS and the application of $38 million toward the settlement of tax and interest for prior tax years, primarily relating to tax liability from the LILO transactions. In the first quarter of 2014, Con Edison applied the remainder of the deposit against its federal and state tax liabilities, including interest, for other tax years. | |||||||||||||||||
CECONY [Member] | |||||||||||||||||
Leases | Note J – Leases | ||||||||||||||||
Con Edison’s subsidiaries lease electric transmission facilities, gas distribution facilities, land, office buildings and equipment. In accordance with the accounting rules for leases, these leases are classified as either capital leases or operating leases. Most of the operating leases provide the option to renew at the fair rental value for future periods. Generally, it is expected that leases will be renewed or replaced in the normal course of business. | |||||||||||||||||
Capital leases: For ratemaking purposes capital leases are treated as operating leases; therefore, in accordance with the accounting rules for regulated operations, the amortization of the leased asset is based on the rental payments recovered from customers. The following assets under capital leases are included in the Companies’ consolidated balance sheets at December 31, 2014 and 2013: | |||||||||||||||||
Con Edison | CECONY | ||||||||||||||||
(Millions of Dollars) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
UTILITY PLANT | |||||||||||||||||
Common | $ | 3 | $ | 3 | $ | 1 | $ | 2 | |||||||||
The accumulated amortization of the capital leases for Con Edison and CECONY was $1.8 million and $0.8 million, respectively at December 31, 2014, and $1.0 million and $0.6 million, respectively at December 31, 2013. | |||||||||||||||||
The future minimum lease commitments for the above assets are as follows: | |||||||||||||||||
(Millions of Dollars) | Con Edison | CECONY | |||||||||||||||
2015 | $ | 1 | $ | 1 | |||||||||||||
2016 | 1 | 1 | |||||||||||||||
2017 | - | - | |||||||||||||||
2018 | - | - | |||||||||||||||
2019 | - | - | |||||||||||||||
All years thereafter | - | - | |||||||||||||||
Total | 2 | 2 | |||||||||||||||
Less: amount representing interest | 1 | 1 | |||||||||||||||
Present value of net minimum lease payment | $ | 1 | $ | 1 | |||||||||||||
Operating leases: The future minimum lease commitments under the Companies’ non-cancelable operating lease agreements are as follows: | |||||||||||||||||
(Millions of Dollars) | Con Edison | CECONY | |||||||||||||||
2015 | $ | 18 | $ | 14 | |||||||||||||
2016 | 17 | 13 | |||||||||||||||
2017 | 16 | 12 | |||||||||||||||
2018 | 16 | 12 | |||||||||||||||
2019 | 14 | 10 | |||||||||||||||
All years thereafter | 72 | 51 | |||||||||||||||
Total | $ | 153 | $ | 112 | |||||||||||||
Lease In/Lease Out Transactions | |||||||||||||||||
In each of 1997 and 1999, Con Edison Development entered into transactions in which it leased property and then immediately subleased the properties back to the lessor (termed “Lease In/Lease Out,” or LILO transactions). The transactions respectively involved electric generating and gas distribution facilities in the Netherlands, with a total investment of $259 million. The transactions were financed with $93 million of equity and $166 million of non-recourse, long-term debt secured by the underlying assets. In accordance with the accounting rules for leases, Con Edison accounted for the two LILO transactions as leveraged leases. Accordingly, the company’s investment in these leases, net of non-recourse debt, was carried as a single amount in Con Edison’s consolidated balance sheet and income was recognized pursuant to a method that incorporated a level rate of return for those years when net investment in the lease was positive. At December 31, 2012, the company’s net investment in the LILO transactions was $(76) million, comprised of a $228 million gross investment less $304 million of deferred tax liabilities. During 2013, as discussed below, the company terminated its LILO transactions and at December 31, 2013 no longer had an investment recorded for these leases in its consolidated balance sheet. | |||||||||||||||||
On audit of Con Edison’s tax returns, the Internal Revenue Service (IRS) disallowed tax losses in connection with the 1997 LILO transactions. In October 2009, the United States Court of Federal Claims issued a decision in favor of the company which, among other things, concluded that the tax losses claimed by the company were allowable. In January 2013, the United States Court of Appeals for the Federal Circuit reversed the October 2009 trial court decision. In June 2013, Con Edison entered into a closing agreement with the IRS regarding the 1997 and 1999 LILO transactions. | |||||||||||||||||
As a result of the January 2013 Court of Appeals decision, in 2013, Con Edison recorded an after-tax charge of $150 million to reflect, as required by the accounting rules for leveraged lease transactions, the recalculation of the accounting effect of the LILO transactions based on the revised after-tax cash flows projected from the inception of the leveraged leases as well as the interest on the potential tax liability resulting from the disallowance of federal and state income tax losses for the LILO transactions. Also, in 2013, the LILO transactions were terminated, as a result of which the company realized a $55 million gain (after-tax). In 2014, adjustments were made to the interest accrued on the liability and the related taxes resulting in a decrease to net income of $1 million. | |||||||||||||||||
The effect on Con Edison’s consolidated income statement for the twelve months ended as of December 31, 2014 and 2013 was as follows: | |||||||||||||||||
For the Years Ended | |||||||||||||||||
December 31, | |||||||||||||||||
(Millions of Dollars) | 2014 | 2013 | |||||||||||||||
Increase/(decrease) to non-utility operating revenues | $ | - | $ | (27 | ) | ||||||||||||
(Increase)/decrease to other interest expense | 13 | (131 | ) | ||||||||||||||
Income tax benefit/(expense) | -14 | 63 | |||||||||||||||
Total increase/(decrease) in net income | ($1) | ($95) | |||||||||||||||
The transactions did not impact earnings in 2012. | |||||||||||||||||
In January 2013, to defray interest charges, the company deposited $447 million with federal and state tax agencies relating primarily to the potential tax liability from the LILO transactions in past tax years and interest thereon. During 2013, $125 million of the deposit was returned from the IRS at the company’s request. Also in 2013, the deposit balance was reduced by an additional $48 million, due to a $10 million refund from the IRS and the application of $38 million toward the settlement of tax and interest for prior tax years, primarily relating to tax liability from the LILO transactions. In the first quarter of 2014, Con Edison applied the remainder of the deposit against its federal and state tax liabilities, including interest, for other tax years. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2014 | |
Goodwill | Note K – Goodwill |
In 2014 and 2013, Con Edison completed impairment tests for its goodwill of $406 million related to the O&R merger, and determined that it was not impaired. For the impairment test, $245 million and $161 million of the goodwill were allocated to CECONY and O&R, respectively. In 2014 and 2013, Con Edison also completed impairment tests for the goodwill of $23 million related to two energy services companies acquired by Con Edison Solutions and a gas storage company acquired by Con Edison Development, and determined that the goodwill was not impaired. Estimates of future cash flows, projected growth rates, and discount rates inherent in the cash flow estimates for the energy services companies and gas storage company may vary significantly from actual results, which could result in a future impairment of goodwill. | |
Prior to 2014, Con Edison performed its annual goodwill impairment test on either January 1 or December 31. During the fourth quarter of 2014, Con Edison changed its annual goodwill impairment testing date from January 1 and December 31 to October 1. This change is preferable under the circumstances as it aligns the timing of the annual goodwill impairment test with the strategic planning and budgeting process, which will allow Con Edison to utilize the updated strategic business plans that result from the budget process in the discounted cash flow analyses that it uses to estimate the fair value of its reporting units. This change does not accelerate, delay, avoid or cause an impairment charge, nor does this change result in adjustments to previously issued financial statements. The annual goodwill impairment testing was performed as of October 1, 2014. Consideration was also given to the period between the testing date and December 31, 2014, in order to conclude that no facts or circumstances have arisen that would lead to a different conclusion as of December 31, 2014. | |
CECONY [Member] | |
Goodwill | Note K – Goodwill |
In 2014 and 2013, Con Edison completed impairment tests for its goodwill of $406 million related to the O&R merger, and determined that it was not impaired. For the impairment test, $245 million and $161 million of the goodwill were allocated to CECONY and O&R, respectively. In 2014 and 2013, Con Edison also completed impairment tests for the goodwill of $23 million related to two energy services companies acquired by Con Edison Solutions and a gas storage company acquired by Con Edison Development, and determined that the goodwill was not impaired. Estimates of future cash flows, projected growth rates, and discount rates inherent in the cash flow estimates for the energy services companies and gas storage company may vary significantly from actual results, which could result in a future impairment of goodwill. | |
Prior to 2014, Con Edison performed its annual goodwill impairment test on either January 1 or December 31. During the fourth quarter of 2014, Con Edison changed its annual goodwill impairment testing date from January 1 and December 31 to October 1. This change is preferable under the circumstances as it aligns the timing of the annual goodwill impairment test with the strategic planning and budgeting process, which will allow Con Edison to utilize the updated strategic business plans that result from the budget process in the discounted cash flow analyses that it uses to estimate the fair value of its reporting units. This change does not accelerate, delay, avoid or cause an impairment charge, nor does this change result in adjustments to previously issued financial statements. The annual goodwill impairment testing was performed as of October 1, 2014. Consideration was also given to the period between the testing date and December 31, 2014, in order to conclude that no facts or circumstances have arisen that would lead to a different conclusion as of December 31, 2014. |
Income_Tax
Income Tax | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Income Tax | Note L – Income Tax | ||||||||||||||||||||||||
The components of income tax are as follows: | |||||||||||||||||||||||||
Con Edison | CECONY | ||||||||||||||||||||||||
(Millions of Dollars) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
State | |||||||||||||||||||||||||
Current | $ | 59 | $ | 151 | $ | 29 | $ | 66 | $ | 111 | $ | 53 | |||||||||||||
Deferred | 61 | (70 | ) | 97 | 65 | (14 | ) | 53 | |||||||||||||||||
Federal | |||||||||||||||||||||||||
Current | (9 | ) | 285 | (13 | ) | 158 | 187 | 110 | |||||||||||||||||
Deferred | 463 | 115 | 493 | 271 | 241 | 318 | |||||||||||||||||||
Amortization of investment tax credits | (6 | ) | (5 | ) | (6 | ) | (5 | ) | (5 | ) | (5 | ) | |||||||||||||
Total income tax expense | $ | 568 | $ | 476 | $ | 600 | $ | 555 | $ | 520 | $ | 529 | |||||||||||||
The tax effects of temporary differences, which gave rise to deferred tax assets and liabilities, are as follows: | |||||||||||||||||||||||||
Con Edison | CECONY | ||||||||||||||||||||||||
(Millions of Dollars) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Deferred tax liabilities: | |||||||||||||||||||||||||
Property basis differences | $ | 7,510 | $ | 7,012 | $ | 6,938 | $ | 6,424 | |||||||||||||||||
Unrecognized pension and other postretirement costs | 1,968 | 1,109 | 1,872 | 1,060 | |||||||||||||||||||||
Regulatory asset – future income tax | 910 | 871 | 863 | 825 | |||||||||||||||||||||
Environmental remediation costs | 376 | 381 | 333 | 337 | |||||||||||||||||||||
Deferred storm costs | 129 | 179 | 91 | 136 | |||||||||||||||||||||
Equity investments | 168 | 21 | - | - | |||||||||||||||||||||
Other regulatory assets | 347 | 402 | 300 | 364 | |||||||||||||||||||||
Unamortized investment tax credits | 126 | 43 | 37 | 42 | |||||||||||||||||||||
Total deferred tax liabilities and investment tax credits | 11,534 | 10,018 | 10,434 | 9,188 | |||||||||||||||||||||
Deferred tax assets: | |||||||||||||||||||||||||
Accrued pension and other postretirement costs | 1,306 | 458 | 1,155 | 364 | |||||||||||||||||||||
Regulatory liabilities | 615 | 604 | 574 | 569 | |||||||||||||||||||||
Superfund and other environmental costs | 306 | 301 | 264 | 256 | |||||||||||||||||||||
Asset retirement obligations | 77 | 58 | 75 | 58 | |||||||||||||||||||||
Loss carryforwards | 21 | 12 | - | - | |||||||||||||||||||||
Loss carryforwards, valuation reserve | (11 | ) | (12 | ) | - | - | |||||||||||||||||||
Other | 272 | 253 | 203 | 209 | |||||||||||||||||||||
Total deferred tax assets | 2,586 | 1,674 | 2,271 | 1,456 | |||||||||||||||||||||
Net deferred tax liabilities and investment tax credits | $ | 8,948 | $ | 8,344 | $ | 8,163 | $ | 7,732 | |||||||||||||||||
Deferred income taxes and investment tax credits – noncurrent | $ | 9,076 | $ | 8,466 | $ | 8,257 | $ | 7,832 | |||||||||||||||||
Deferred tax assets – current | (128 | ) | (122 | ) | (94 | ) | (100 | ) | |||||||||||||||||
Net deferred tax liabilities and investment tax credits | $ | 8,948 | $ | 8,344 | $ | 8,163 | $ | 7,732 | |||||||||||||||||
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) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
STATUTORY TAX RATE | |||||||||||||||||||||||||
Federal | 35 | % | 35 | % | 35 | % | 35 | % | 35 | % | 35 | % | |||||||||||||
Changes in computed taxes resulting from: | |||||||||||||||||||||||||
State income tax | 5 | 4 | 4 | 5 | 5 | 4 | |||||||||||||||||||
Cost of removal | (5 | ) | (5 | ) | (4 | ) | (5 | ) | (5 | ) | (4 | ) | |||||||||||||
Manufacturing deduction | - | (1 | ) | - | - | - | - | ||||||||||||||||||
Other | (1 | ) | (2 | ) | (1 | ) | (1 | ) | (1 | ) | (1 | ) | |||||||||||||
Effective tax rate | 34 | % | 31 | % | 34 | % | 34 | % | 34 | % | 34 | % | |||||||||||||
Con Edison has a net operating loss carryforward available from the years 1999 through 2014 for which a deferred tax asset of $21 million has been recognized and will not expire until the years 2019 through 2034. An $11 million valuation allowance for New York City income tax purpose has been provided; as it is not more likely than not that the deferred tax asset will be realized. | |||||||||||||||||||||||||
In September 2013, the IRS issued final regulations, effective in 2014, that provide guidance on the appropriate tax treatment of costs incurred to acquire, produce or improve tangible property, as well as routine maintenance and repair costs. Proposed regulations were issued addressing the tax treatment of asset dispositions. The application of these regulations did not have a material impact on the Companies’ financial position, results of operations or liquidity. | |||||||||||||||||||||||||
In March 2014, tax legislation was enacted in the State of New York that reduced the corporate franchise tax rate from 7.1 percent to 6.5 percent, beginning January 1, 2016. The application of this legislation decreased Con Edison’s accumulated deferred tax liabilities by $74 million ($69 million for CECONY), decreased Con Edison’s regulatory asset for future income tax by $11 million ($10 million for CECONY) and increased Con Edison’s regulatory liability by $62 million ($59 million for CECONY). The impact of this tax legislation on Con Edison’s effective tax rate was not material, and there was no impact on CECONY’s effective tax rate for the year ended December 31, 2014. | |||||||||||||||||||||||||
Under the Taxpayer Relief Act of 2012, 50 percent bonus depreciation expired on December 31, 2013. On December 19, 2014, President Obama signed into law the Tax Increase Prevention Act of 2014, which extended bonus depreciation for another year through December 31, 2014. As a result of the extension of bonus depreciation to 2014, Con Edison filed a refund request with the IRS in January 2015 to recover $224 million ($128 million attributable to CECONY) in estimated federal tax payments. | |||||||||||||||||||||||||
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. | |||||||||||||||||||||||||
In 2014 following the conclusion of its IRS audit, Con Edison filed amended state tax returns (primarily New York) for tax years 1998 through 2011. As a result of positions taken on the amended state tax returns, Con Edison increased its estimated liabilities for uncertain tax positions by $27 million ($2 million attributable to CECONY). The amended returns contain uncertain tax positions unique to the states, and the returns remain open for examination. The federal tax returns for 2011 through 2013 remain open for examination. These changes to the Companies’ estimated liabilities for uncertain tax positions had an immaterial impact on income tax expense for the year ended December 31, 2014. | |||||||||||||||||||||||||
A reconciliation of the beginning and ending amounts of unrecognized tax benefits for Con Edison and CECONY follows: | |||||||||||||||||||||||||
Con Edison | CECONY | ||||||||||||||||||||||||
(Millions of Dollars) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Balance at January 1, | $ | 9 | $ | 86 | $ | 130 | $ | - | $ | 74 | $ | 114 | |||||||||||||
Additions based on tax positions related to the current year | - | 5 | 12 | - | - | 11 | |||||||||||||||||||
Additions based on tax positions of prior years | 27 | 253 | - | 2 | - | - | |||||||||||||||||||
Reductions for tax positions of prior years | (2 | ) | (86 | ) | (57 | ) | - | (74 | ) | (52 | ) | ||||||||||||||
Settlements | - | (249 | ) | 1 | - | - | 1 | ||||||||||||||||||
Balance at December 31, | $ | 34 | $ | 9 | $ | 86 | $ | 2 | $ | - | $ | 74 | |||||||||||||
As of December 31, 2014, Con Edison reasonably expects to resolve approximately $26 million ($17 million, net of federal taxes) of its uncertainties related to certain tax matters within the next twelve months. Favorable resolution would reduce Con Edison’s effective tax rate. The amount related to CECONY is approximately $2 million ($1 million, net of federal taxes), of which the entire amount, if recognized, would reduce CECONY’s effective tax rate. | |||||||||||||||||||||||||
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. In 2014 and 2012, the Companies recognized an immaterial amount of interest and no penalties for uncertain tax positions in their consolidated income statements. In 2013, Con Edison recognized $121 million of interest expense ($131 million related to the LILO transactions (see “Lease In/Lease Out Transactions” in Note J), less a reduction of $10 million in accrued interest expense primarily associated with repair allowance deductions and reversing other uncertain tax positions in 2013). At December 31, 2014 and 2013, the Companies recognized an immaterial amount of interest and no penalties in their consolidated balance sheets. | |||||||||||||||||||||||||
At December 31, 2014, the total amount of unrecognized tax benefits that, if recognized, would reduce the Companies’ effective tax rate is $34 million ($22 million, net of federal taxes) with $2 million ($1 million, net of federal taxes) attributable to CECONY. | |||||||||||||||||||||||||
CECONY [Member] | |||||||||||||||||||||||||
Income Tax | Note L – Income Tax | ||||||||||||||||||||||||
The components of income tax are as follows: | |||||||||||||||||||||||||
Con Edison | CECONY | ||||||||||||||||||||||||
(Millions of Dollars) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
State | |||||||||||||||||||||||||
Current | $ | 59 | $ | 151 | $ | 29 | $ | 66 | $ | 111 | $ | 53 | |||||||||||||
Deferred | 61 | (70 | ) | 97 | 65 | (14 | ) | 53 | |||||||||||||||||
Federal | |||||||||||||||||||||||||
Current | (9 | ) | 285 | (13 | ) | 158 | 187 | 110 | |||||||||||||||||
Deferred | 463 | 115 | 493 | 271 | 241 | 318 | |||||||||||||||||||
Amortization of investment tax credits | (6 | ) | (5 | ) | (6 | ) | (5 | ) | (5 | ) | (5 | ) | |||||||||||||
Total income tax expense | $ | 568 | $ | 476 | $ | 600 | $ | 555 | $ | 520 | $ | 529 | |||||||||||||
The tax effects of temporary differences, which gave rise to deferred tax assets and liabilities, are as follows: | |||||||||||||||||||||||||
Con Edison | CECONY | ||||||||||||||||||||||||
(Millions of Dollars) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Deferred tax liabilities: | |||||||||||||||||||||||||
Property basis differences | $ | 7,510 | $ | 7,012 | $ | 6,938 | $ | 6,424 | |||||||||||||||||
Unrecognized pension and other postretirement costs | 1,968 | 1,109 | 1,872 | 1,060 | |||||||||||||||||||||
Regulatory asset – future income tax | 910 | 871 | 863 | 825 | |||||||||||||||||||||
Environmental remediation costs | 376 | 381 | 333 | 337 | |||||||||||||||||||||
Deferred storm costs | 129 | 179 | 91 | 136 | |||||||||||||||||||||
Equity investments | 168 | 21 | - | - | |||||||||||||||||||||
Other regulatory assets | 347 | 402 | 300 | 364 | |||||||||||||||||||||
Unamortized investment tax credits | 126 | 43 | 37 | 42 | |||||||||||||||||||||
Total deferred tax liabilities and investment tax credits | 11,534 | 10,018 | 10,434 | 9,188 | |||||||||||||||||||||
Deferred tax assets: | |||||||||||||||||||||||||
Accrued pension and other postretirement costs | 1,306 | 458 | 1,155 | 364 | |||||||||||||||||||||
Regulatory liabilities | 615 | 604 | 574 | 569 | |||||||||||||||||||||
Superfund and other environmental costs | 306 | 301 | 264 | 256 | |||||||||||||||||||||
Asset retirement obligations | 77 | 58 | 75 | 58 | |||||||||||||||||||||
Loss carryforwards | 21 | 12 | - | - | |||||||||||||||||||||
Loss carryforwards, valuation reserve | (11 | ) | (12 | ) | - | - | |||||||||||||||||||
Other | 272 | 253 | 203 | 209 | |||||||||||||||||||||
Total deferred tax assets | 2,586 | 1,674 | 2,271 | 1,456 | |||||||||||||||||||||
Net deferred tax liabilities and investment tax credits | $ | 8,948 | $ | 8,344 | $ | 8,163 | $ | 7,732 | |||||||||||||||||
Deferred income taxes and investment tax credits – noncurrent | $ | 9,076 | $ | 8,466 | $ | 8,257 | $ | 7,832 | |||||||||||||||||
Deferred tax assets – current | (128 | ) | (122 | ) | (94 | ) | (100 | ) | |||||||||||||||||
Net deferred tax liabilities and investment tax credits | $ | 8,948 | $ | 8,344 | $ | 8,163 | $ | 7,732 | |||||||||||||||||
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) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
STATUTORY TAX RATE | |||||||||||||||||||||||||
Federal | 35 | % | 35 | % | 35 | % | 35 | % | 35 | % | 35 | % | |||||||||||||
Changes in computed taxes resulting from: | |||||||||||||||||||||||||
State income tax | 5 | 4 | 4 | 5 | 5 | 4 | |||||||||||||||||||
Cost of removal | (5 | ) | (5 | ) | (4 | ) | (5 | ) | (5 | ) | (4 | ) | |||||||||||||
Manufacturing deduction | - | (1 | ) | - | - | - | - | ||||||||||||||||||
Other | (1 | ) | (2 | ) | (1 | ) | (1 | ) | (1 | ) | (1 | ) | |||||||||||||
Effective tax rate | 34 | % | 31 | % | 34 | % | 34 | % | 34 | % | 34 | % | |||||||||||||
Con Edison has a net operating loss carryforward available from the years 1999 through 2014 for which a deferred tax asset of $21 million has been recognized and will not expire until the years 2019 through 2034. An $11 million valuation allowance for New York City income tax purpose has been provided; as it is not more likely than not that the deferred tax asset will be realized. | |||||||||||||||||||||||||
In September 2013, the IRS issued final regulations, effective in 2014, that provide guidance on the appropriate tax treatment of costs incurred to acquire, produce or improve tangible property, as well as routine maintenance and repair costs. Proposed regulations were issued addressing the tax treatment of asset dispositions. The application of these regulations did not have a material impact on the Companies’ financial position, results of operations or liquidity. | |||||||||||||||||||||||||
In March 2014, tax legislation was enacted in the State of New York that reduced the corporate franchise tax rate from 7.1 percent to 6.5 percent, beginning January 1, 2016. The application of this legislation decreased Con Edison’s accumulated deferred tax liabilities by $74 million ($69 million for CECONY), decreased Con Edison’s regulatory asset for future income tax by $11 million ($10 million for CECONY) and increased Con Edison’s regulatory liability by $62 million ($59 million for CECONY). The impact of this tax legislation on Con Edison’s effective tax rate was not material, and there was no impact on CECONY’s effective tax rate for the year ended December 31, 2014. | |||||||||||||||||||||||||
Under the Taxpayer Relief Act of 2012, 50 percent bonus depreciation expired on December 31, 2013. On December 19, 2014, President Obama signed into law the Tax Increase Prevention Act of 2014, which extended bonus depreciation for another year through December 31, 2014. As a result of the extension of bonus depreciation to 2014, Con Edison filed a refund request with the IRS in January 2015 to recover $224 million ($128 million attributable to CECONY) in estimated federal tax payments. | |||||||||||||||||||||||||
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. | |||||||||||||||||||||||||
In 2014 following the conclusion of its IRS audit, Con Edison filed amended state tax returns (primarily New York) for tax years 1998 through 2011. As a result of positions taken on the amended state tax returns, Con Edison increased its estimated liabilities for uncertain tax positions by $27 million ($2 million attributable to CECONY). The amended returns contain uncertain tax positions unique to the states, and the returns remain open for examination. The federal tax returns for 2011 through 2013 remain open for examination. These changes to the Companies’ estimated liabilities for uncertain tax positions had an immaterial impact on income tax expense for the year ended December 31, 2014. | |||||||||||||||||||||||||
A reconciliation of the beginning and ending amounts of unrecognized tax benefits for Con Edison and CECONY follows: | |||||||||||||||||||||||||
Con Edison | CECONY | ||||||||||||||||||||||||
(Millions of Dollars) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Balance at January 1, | $ | 9 | $ | 86 | $ | 130 | $ | - | $ | 74 | $ | 114 | |||||||||||||
Additions based on tax positions related to the current year | - | 5 | 12 | - | - | 11 | |||||||||||||||||||
Additions based on tax positions of prior years | 27 | 253 | - | 2 | - | - | |||||||||||||||||||
Reductions for tax positions of prior years | (2 | ) | (86 | ) | (57 | ) | - | (74 | ) | (52 | ) | ||||||||||||||
Settlements | - | (249 | ) | 1 | - | - | 1 | ||||||||||||||||||
Balance at December 31, | $ | 34 | $ | 9 | $ | 86 | $ | 2 | $ | - | $ | 74 | |||||||||||||
As of December 31, 2014, Con Edison reasonably expects to resolve approximately $26 million ($17 million, net of federal taxes) of its uncertainties related to certain tax matters within the next twelve months. Favorable resolution would reduce Con Edison’s effective tax rate. The amount related to CECONY is approximately $2 million ($1 million, net of federal taxes), of which the entire amount, if recognized, would reduce CECONY’s effective tax rate. | |||||||||||||||||||||||||
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. In 2014 and 2012, the Companies recognized an immaterial amount of interest and no penalties for uncertain tax positions in their consolidated income statements. In 2013, Con Edison recognized $121 million of interest expense ($131 million related to the LILO transactions (see “Lease In/Lease Out Transactions” in Note J), less a reduction of $10 million in accrued interest expense primarily associated with repair allowance deductions and reversing other uncertain tax positions in 2013). At December 31, 2014 and 2013, the Companies recognized an immaterial amount of interest and no penalties in their consolidated balance sheets. | |||||||||||||||||||||||||
At December 31, 2014, the total amount of unrecognized tax benefits that, if recognized, would reduce the Companies’ effective tax rate is $34 million ($22 million, net of federal taxes) with $2 million ($1 million, net of federal taxes) attributable to CECONY. |
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Stock-Based Compensation | Note M – Stock-Based Compensation | ||||||||||||||||||||||||
The Companies may compensate employees and directors with, among other things, stock options, stock units, restricted stock units and contributions to the stock purchase plan. The Long Term Incentive Plan, which was approved by Con Edison’s shareholders in 2003 (2003 LTIP), and the Long Term Incentive Plan, which was approved by Con Edison’s shareholders in 2013 (2013 LTIP), are collectively referred to herein as the LTIP. The LTIP provides for, among other things, awards to employees of restricted stock units and stock options and, to Con Edison’s non-employee directors, stock units. Existing awards under the 2003 LTIP continue in effect, however no new awards may be issued under the 2003 LTIP. The 2013 LTIP provides for awards for up to five million shares of common stock. | |||||||||||||||||||||||||
Shares of Con Edison common stock used to satisfy the Companies’ obligations with respect to stock-based compensation may be new (authorized, but unissued) shares, treasury shares or shares purchased in the open market. The Companies intend to use treasury shares and new shares to fulfill their stock-based compensation obligations for 2015. | |||||||||||||||||||||||||
Under the accounting rules for stock compensation, the Companies have recognized the cost of stock-based compensation as an expense using a fair value measurement method. The following table summarizes stock-based compensation expense recognized by the Companies in the years ended December 31, 2014, 2013 and 2012: | |||||||||||||||||||||||||
Con Edison | CECONY | ||||||||||||||||||||||||
(Millions of Dollars) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Performance-based restricted stock | $ | 22 | $ | 20 | $ | 14 | $ | 19 | $ | 18 | $ | 13 | |||||||||||||
Time-based restricted stock | 2 | 2 | 1 | 2 | 2 | 1 | |||||||||||||||||||
Non-employee director deferred stock compensation | 2 | 2 | 1 | 2 | 2 | 1 | |||||||||||||||||||
Stock purchase plan | 3 | 3 | 3 | 3 | 3 | 3 | |||||||||||||||||||
Total | $ | 29 | $ | 27 | $ | 19 | $ | 26 | $ | 25 | $ | 18 | |||||||||||||
Income tax benefit | $ | 12 | $ | 11 | $ | 8 | $ | 10 | $ | 10 | $ | 7 | |||||||||||||
Stock Options | |||||||||||||||||||||||||
The Companies last granted stock options in 2006. The stock options generally vested over a three-year period and have a term of 10 years. Options were granted at an exercise price equal to the fair market value of a common share when the option was granted. The Companies generally recognized compensation expense (based on the fair value of stock option awards) over the vesting period. | |||||||||||||||||||||||||
The outstanding options are “equity awards” because shares of Con Edison common stock are delivered upon exercise of the options. As equity awards, the fair value of the options is measured at the grant date. | |||||||||||||||||||||||||
A summary of changes in the status of stock options as of December 31, 2014 is as follows: | |||||||||||||||||||||||||
Con Edison | CECONY | ||||||||||||||||||||||||
Shares | Weighted | Shares | Weighted | ||||||||||||||||||||||
Average | Average | ||||||||||||||||||||||||
Exercise | Exercise | ||||||||||||||||||||||||
Price | Price | ||||||||||||||||||||||||
Outstanding at 12/31/13 | 481,310 | $ | 43.38 | 381,010 | $ | 43.34 | |||||||||||||||||||
Exercised | (251,460 | ) | 43.75 | (189,660 | ) | 43.68 | |||||||||||||||||||
Forfeited | - | - | - | - | |||||||||||||||||||||
Outstanding at 12/31/14 | 229,850 | $ | 42.99 | 191,350 | $ | 43 | |||||||||||||||||||
Note: The weighted average remaining contractual life is one year for all outstanding options as of 12/31/14. | |||||||||||||||||||||||||
The following table summarizes information about stock options for the years ended December 31, 2014 and 2013: | |||||||||||||||||||||||||
Con Edison | CECONY | ||||||||||||||||||||||||
(Millions of Dollars) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Aggregate intrinsic value* | |||||||||||||||||||||||||
Options outstanding | $ | 5 | $ | 6 | $ | 4 | $ | 5 | |||||||||||||||||
Options exercised | 4 | 2 | 3 | 2 | |||||||||||||||||||||
Cash received by Con Edison for | 11 | 5 | 8 | 4 | |||||||||||||||||||||
payment of exercise price | |||||||||||||||||||||||||
* | Aggregate intrinsic value represents the changes in the fair value of all outstanding options from their grant dates to December 31 of the years presented above. | ||||||||||||||||||||||||
The income tax benefit Con Edison realized from stock options exercised in the years ended December 31, 2014, 2013 and 2012 was $1 million, $10 million and an immaterial amount, respectively. | |||||||||||||||||||||||||
Restricted Stock and Stock Units | |||||||||||||||||||||||||
Restricted stock and stock unit awards under the LTIP have been made as follows: (i) awards that provide for adjustment of the number of units (performance-restricted stock units or Performance RSUs) to certain officers and employees; (ii) time-based awards to certain employees; and (iii) awards to non-employee directors. Restricted stock and stock units awarded represents the right to receive, upon vesting, shares of Con Edison common stock, or, except for units awarded under the directors’ plan, the cash value of shares or a combination thereof. | |||||||||||||||||||||||||
The number of units in each annual Performance RSU award is subject to adjustment as follows: (i) 50 percent of the units awarded will be multiplied by a factor that may range from 0 to 200 percent, based on Con Edison’s total shareholder return relative to a specified peer group during a specified performance period (the TSR portion); and (ii) 50 percent of the units awarded will be multiplied by a factor that may range from 0 to 120 percent for management employees and from 0 to 200 percent, based on determinations made in connection with the Companies’ annual incentive plans or, for certain executive officers, actual performance as compared to certain performance measures during a specified performance period (the non-TSR portion). Performance RSU awards generally vest upon completion of the performance period. | |||||||||||||||||||||||||
Performance against the established targets is recomputed each reporting period as of the earlier of the reporting date and the vesting date. The TSR portion applies a Monte Carlo simulation model, and the non-TSR portion is the product of the market price at the end of the period multiplied by the average non-TSR determination over the vesting period. Performance RSUs are “liability awards” because each Performance RSU represents the right to receive, upon vesting, one share of Con Edison common stock, the cash value of a share or a combination thereof. As such, changes in the fair value of the Performance RSUs are reflected in net income. The following table illustrates the assumptions used to calculate the fair value of the awards: | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Risk-free interest rate(a) | 0.23% - 3.07% | 0.13% - 5.17% | 0.15% - 3.39% | ||||||||||||||||||||||
Expected term(b) | 3 years | 3 years | 3 years | ||||||||||||||||||||||
Expected share price volatility(c) | 13.14% | 13.52% | 15.27% | ||||||||||||||||||||||
(a) | The risk-free rate is based on the U.S. Treasury zero-coupon yield curve on the date of grant. | ||||||||||||||||||||||||
(b) | The expected term of the Performance RSUs equals the vesting period. The Companies do not expect significant forfeitures to occur. | ||||||||||||||||||||||||
(c) | The expected volatility is calculated using daily closing stock prices over a period of three years, which approximates the expected term of the awards. | ||||||||||||||||||||||||
A summary of changes in the status of the Performance RSUs’ TSR and non-TSR portions during the year ended December 31, 2014 is as follows: | |||||||||||||||||||||||||
Con Edison | CECONY | ||||||||||||||||||||||||
Units | Weighted | Units | Weighted | ||||||||||||||||||||||
Average | Average | ||||||||||||||||||||||||
Grant Date | Grant Date | ||||||||||||||||||||||||
Fair Value(a) | Fair Value(a) | ||||||||||||||||||||||||
TSR | Non-TSR | TSR | Non-TSR | ||||||||||||||||||||||
Portion(b) | Portion(c) | Portion(b) | Portion(c) | ||||||||||||||||||||||
Non-vested at 12/31/13 | 1,121,598 | $ | 49.32 | $ | 55.31 | 897,052 | $ | 49.38 | $ | 55.42 | |||||||||||||||
Granted | 428,310 | 25.34 | 53.65 | 342,001 | 25.86 | 53.71 | |||||||||||||||||||
Vested | (411,704 | ) | 43.84 | 50.05 | (323,483 | ) | 43.93 | 50.08 | |||||||||||||||||
Forfeited | (37,597 | ) | 40.9 | 55.97 | (35,047 | ) | 40.84 | 55.95 | |||||||||||||||||
Non-vested at 12/31/14 | 1,100,607 | $ | 42.33 | $ | 56.61 | 880,523 | $ | 42.58 | $ | 56.7 | |||||||||||||||
(a) | The TSR and non-TSR Portions each account for 50 percent of the awards’ value. | ||||||||||||||||||||||||
(b) | Fair value is determined using the Monte Carlo simulation described above. Weighted average grant date fair value does not reflect any accrual or payment of dividends prior to vesting. | ||||||||||||||||||||||||
(c) | Fair value is determined using the market price of one share of Con Edison common stock on the grant date. The market price has not been discounted to reflect that dividends do not accrue and are not payable on Performance RSUs until vesting. | ||||||||||||||||||||||||
The total expense to be recognized by Con Edison in future periods for unvested Performance RSUs outstanding as of December 31, 2014 is $25 million, including $19 million for CECONY and is expected to be recognized over a weighted average period of one year for both Con Edison and CECONY. | |||||||||||||||||||||||||
In accordance with the accounting rules for stock compensation, for time-based awards, the Companies have accrued a liability based on the market value of a common share on the grant date and are recognizing compensation expense over the vesting period. The vesting period for awards is three years and is based on the employee’s continuous service to Con Edison. Prior to vesting, the awards are subject to forfeiture in whole or in part under certain circumstances. The awards are “liability awards” because each restricted stock unit represents the right to receive, upon vesting, one share of Con Edison common stock, the cash value of a share or a combination thereof. As such, prior to vesting, changes in the fair value of the units are reflected in net income. A summary of changes in the status of time-based awards during the year ended December 31, 2014 is as follows: | |||||||||||||||||||||||||
Con Edison | CECONY | ||||||||||||||||||||||||
Units | Weighted | Units | Weighted | ||||||||||||||||||||||
Average | Average | ||||||||||||||||||||||||
Grant | Grant | ||||||||||||||||||||||||
Date Fair | Date Fair | ||||||||||||||||||||||||
Value | Value | ||||||||||||||||||||||||
Non-vested at 12/31/13 | 66,580 | $ | 56.92 | 63,030 | $ | 56.93 | |||||||||||||||||||
Granted | 22,990 | 53.65 | 21,790 | 53.65 | |||||||||||||||||||||
Vested | (20,900 | ) | 50.74 | (19,800 | ) | 50.75 | |||||||||||||||||||
Forfeited | (3,247 | ) | 58.06 | (2,847 | ) | 58.27 | |||||||||||||||||||
Non-vested at 12/31/14 | 65,423 | $ | 57.65 | 62,173 | $ | 57.64 | |||||||||||||||||||
The total expense to be recognized by Con Edison in future periods for unvested time-based awards outstanding as of December 31, 2014 for Con Edison was $2 million, including $2 million for CECONY, and is expected to be recognized over a weighted average period of one year. | |||||||||||||||||||||||||
Under the LTIP, each non-employee director receives stock units, which are deferred until the director’s separation from service or another date specified by the director. Each director may also elect to defer all or a portion of their cash compensation into additional stock units, which are deferred until the director’s termination of service or another date specified by the director. Non-employee directors’ stock units issued under the LTIP are considered “equity awards,” because they may only be settled in shares. Directors immediately vest in units issued to them. The fair value of the units is determined using the closing price of Con Edison’s common stock on the business day immediately preceding the date of issue. In the year ended December 31, 2014, approximately 37,972 units were issued at a weighted average grant date price of $55.51. | |||||||||||||||||||||||||
Stock Purchase Plan | |||||||||||||||||||||||||
The Stock Purchase Plan, which was approved by shareholders in 2004 and 2014, provides for the Companies to contribute up to $1 for each $9 invested by their directors, officers or employees to purchase Con Edison common stock under the plan. Eligible participants may invest up to $25,000 during any calendar year (subject to an additional limitation for officers and employees of not more than 20 percent of their pay). Dividends paid on shares held under the plan are reinvested in additional shares unless otherwise directed by the participant. | |||||||||||||||||||||||||
Participants in the plan immediately vest in shares purchased by them under the plan. The fair value of the shares of Con Edison common stock purchased under the plan was calculated using the average of the high and low composite sale prices at which shares were traded at the New York Stock Exchange on the trading day immediately preceding such purchase dates. During 2014, 2013 and 2012, 708,276, 864,281 and 665,718 shares were purchased under the Stock Purchase Plan at a weighted average price of $56.23, $57.24 and $59.72 per share, respectively. | |||||||||||||||||||||||||
CECONY [Member] | |||||||||||||||||||||||||
Stock-Based Compensation | Note M – Stock-Based Compensation | ||||||||||||||||||||||||
The Companies may compensate employees and directors with, among other things, stock options, stock units, restricted stock units and contributions to the stock purchase plan. The Long Term Incentive Plan, which was approved by Con Edison’s shareholders in 2003 (2003 LTIP), and the Long Term Incentive Plan, which was approved by Con Edison’s shareholders in 2013 (2013 LTIP), are collectively referred to herein as the LTIP. The LTIP provides for, among other things, awards to employees of restricted stock units and stock options and, to Con Edison’s non-employee directors, stock units. Existing awards under the 2003 LTIP continue in effect, however no new awards may be issued under the 2003 LTIP. The 2013 LTIP provides for awards for up to five million shares of common stock. | |||||||||||||||||||||||||
Shares of Con Edison common stock used to satisfy the Companies’ obligations with respect to stock-based compensation may be new (authorized, but unissued) shares, treasury shares or shares purchased in the open market. The Companies intend to use treasury shares and new shares to fulfill their stock-based compensation obligations for 2015. | |||||||||||||||||||||||||
Under the accounting rules for stock compensation, the Companies have recognized the cost of stock-based compensation as an expense using a fair value measurement method. The following table summarizes stock-based compensation expense recognized by the Companies in the years ended December 31, 2014, 2013 and 2012: | |||||||||||||||||||||||||
Con Edison | CECONY | ||||||||||||||||||||||||
(Millions of Dollars) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Performance-based restricted stock | $ | 22 | $ | 20 | $ | 14 | $ | 19 | $ | 18 | $ | 13 | |||||||||||||
Time-based restricted stock | 2 | 2 | 1 | 2 | 2 | 1 | |||||||||||||||||||
Non-employee director deferred stock compensation | 2 | 2 | 1 | 2 | 2 | 1 | |||||||||||||||||||
Stock purchase plan | 3 | 3 | 3 | 3 | 3 | 3 | |||||||||||||||||||
Total | $ | 29 | $ | 27 | $ | 19 | $ | 26 | $ | 25 | $ | 18 | |||||||||||||
Income tax benefit | $ | 12 | $ | 11 | $ | 8 | $ | 10 | $ | 10 | $ | 7 | |||||||||||||
Stock Options | |||||||||||||||||||||||||
The Companies last granted stock options in 2006. The stock options generally vested over a three-year period and have a term of 10 years. Options were granted at an exercise price equal to the fair market value of a common share when the option was granted. The Companies generally recognized compensation expense (based on the fair value of stock option awards) over the vesting period. | |||||||||||||||||||||||||
The outstanding options are “equity awards” because shares of Con Edison common stock are delivered upon exercise of the options. As equity awards, the fair value of the options is measured at the grant date. | |||||||||||||||||||||||||
A summary of changes in the status of stock options as of December 31, 2014 is as follows: | |||||||||||||||||||||||||
Con Edison | CECONY | ||||||||||||||||||||||||
Shares | Weighted | Shares | Weighted | ||||||||||||||||||||||
Average | Average | ||||||||||||||||||||||||
Exercise | Exercise | ||||||||||||||||||||||||
Price | Price | ||||||||||||||||||||||||
Outstanding at 12/31/13 | 481,310 | $ | 43.38 | 381,010 | $ | 43.34 | |||||||||||||||||||
Exercised | (251,460 | ) | 43.75 | (189,660 | ) | 43.68 | |||||||||||||||||||
Forfeited | - | - | - | - | |||||||||||||||||||||
Outstanding at 12/31/14 | 229,850 | $ | 42.99 | 191,350 | $ | 43 | |||||||||||||||||||
Note: The weighted average remaining contractual life is one year for all outstanding options as of 12/31/14. | |||||||||||||||||||||||||
The following table summarizes information about stock options for the years ended December 31, 2014 and 2013: | |||||||||||||||||||||||||
Con Edison | CECONY | ||||||||||||||||||||||||
(Millions of Dollars) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Aggregate intrinsic value* | |||||||||||||||||||||||||
Options outstanding | $ | 5 | $ | 6 | $ | 4 | $ | 5 | |||||||||||||||||
Options exercised | 4 | 2 | 3 | 2 | |||||||||||||||||||||
Cash received by Con Edison for | 11 | 5 | 8 | 4 | |||||||||||||||||||||
payment of exercise price | |||||||||||||||||||||||||
* | Aggregate intrinsic value represents the changes in the fair value of all outstanding options from their grant dates to December 31 of the years presented above. | ||||||||||||||||||||||||
The income tax benefit Con Edison realized from stock options exercised in the years ended December 31, 2014, 2013 and 2012 was $1 million, $10 million and an immaterial amount, respectively. | |||||||||||||||||||||||||
Restricted Stock and Stock Units | |||||||||||||||||||||||||
Restricted stock and stock unit awards under the LTIP have been made as follows: (i) awards that provide for adjustment of the number of units (performance-restricted stock units or Performance RSUs) to certain officers and employees; (ii) time-based awards to certain employees; and (iii) awards to non-employee directors. Restricted stock and stock units awarded represents the right to receive, upon vesting, shares of Con Edison common stock, or, except for units awarded under the directors’ plan, the cash value of shares or a combination thereof. | |||||||||||||||||||||||||
The number of units in each annual Performance RSU award is subject to adjustment as follows: (i) 50 percent of the units awarded will be multiplied by a factor that may range from 0 to 200 percent, based on Con Edison’s total shareholder return relative to a specified peer group during a specified performance period (the TSR portion); and (ii) 50 percent of the units awarded will be multiplied by a factor that may range from 0 to 120 percent for management employees and from 0 to 200 percent, based on determinations made in connection with the Companies’ annual incentive plans or, for certain executive officers, actual performance as compared to certain performance measures during a specified performance period (the non-TSR portion). Performance RSU awards generally vest upon completion of the performance period. | |||||||||||||||||||||||||
Performance against the established targets is recomputed each reporting period as of the earlier of the reporting date and the vesting date. The TSR portion applies a Monte Carlo simulation model, and the non-TSR portion is the product of the market price at the end of the period multiplied by the average non-TSR determination over the vesting period. Performance RSUs are “liability awards” because each Performance RSU represents the right to receive, upon vesting, one share of Con Edison common stock, the cash value of a share or a combination thereof. As such, changes in the fair value of the Performance RSUs are reflected in net income. The following table illustrates the assumptions used to calculate the fair value of the awards: | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Risk-free interest rate(a) | 0.23% - 3.07% | 0.13% - 5.17% | 0.15% - 3.39% | ||||||||||||||||||||||
Expected term(b) | 3 years | 3 years | 3 years | ||||||||||||||||||||||
Expected share price volatility(c) | 13.14% | 13.52% | 15.27% | ||||||||||||||||||||||
(a) | The risk-free rate is based on the U.S. Treasury zero-coupon yield curve on the date of grant. | ||||||||||||||||||||||||
(b) | The expected term of the Performance RSUs equals the vesting period. The Companies do not expect significant forfeitures to occur. | ||||||||||||||||||||||||
(c) | The expected volatility is calculated using daily closing stock prices over a period of three years, which approximates the expected term of the awards. | ||||||||||||||||||||||||
A summary of changes in the status of the Performance RSUs’ TSR and non-TSR portions during the year ended December 31, 2014 is as follows: | |||||||||||||||||||||||||
Con Edison | CECONY | ||||||||||||||||||||||||
Units | Weighted | Units | Weighted | ||||||||||||||||||||||
Average | Average | ||||||||||||||||||||||||
Grant Date | Grant Date | ||||||||||||||||||||||||
Fair Value(a) | Fair Value(a) | ||||||||||||||||||||||||
TSR | Non-TSR | TSR | Non-TSR | ||||||||||||||||||||||
Portion(b) | Portion(c) | Portion(b) | Portion(c) | ||||||||||||||||||||||
Non-vested at 12/31/13 | 1,121,598 | $ | 49.32 | $ | 55.31 | 897,052 | $ | 49.38 | $ | 55.42 | |||||||||||||||
Granted | 428,310 | 25.34 | 53.65 | 342,001 | 25.86 | 53.71 | |||||||||||||||||||
Vested | (411,704 | ) | 43.84 | 50.05 | (323,483 | ) | 43.93 | 50.08 | |||||||||||||||||
Forfeited | (37,597 | ) | 40.9 | 55.97 | (35,047 | ) | 40.84 | 55.95 | |||||||||||||||||
Non-vested at 12/31/14 | 1,100,607 | $ | 42.33 | $ | 56.61 | 880,523 | $ | 42.58 | $ | 56.7 | |||||||||||||||
(a) | The TSR and non-TSR Portions each account for 50 percent of the awards’ value. | ||||||||||||||||||||||||
(b) | Fair value is determined using the Monte Carlo simulation described above. Weighted average grant date fair value does not reflect any accrual or payment of dividends prior to vesting. | ||||||||||||||||||||||||
(c) | Fair value is determined using the market price of one share of Con Edison common stock on the grant date. The market price has not been discounted to reflect that dividends do not accrue and are not payable on Performance RSUs until vesting. | ||||||||||||||||||||||||
The total expense to be recognized by Con Edison in future periods for unvested Performance RSUs outstanding as of December 31, 2014 is $25 million, including $19 million for CECONY and is expected to be recognized over a weighted average period of one year for both Con Edison and CECONY. | |||||||||||||||||||||||||
In accordance with the accounting rules for stock compensation, for time-based awards, the Companies have accrued a liability based on the market value of a common share on the grant date and are recognizing compensation expense over the vesting period. The vesting period for awards is three years and is based on the employee’s continuous service to Con Edison. Prior to vesting, the awards are subject to forfeiture in whole or in part under certain circumstances. The awards are “liability awards” because each restricted stock unit represents the right to receive, upon vesting, one share of Con Edison common stock, the cash value of a share or a combination thereof. As such, prior to vesting, changes in the fair value of the units are reflected in net income. A summary of changes in the status of time-based awards during the year ended December 31, 2014 is as follows: | |||||||||||||||||||||||||
Con Edison | CECONY | ||||||||||||||||||||||||
Units | Weighted | Units | Weighted | ||||||||||||||||||||||
Average | Average | ||||||||||||||||||||||||
Grant | Grant | ||||||||||||||||||||||||
Date Fair | Date Fair | ||||||||||||||||||||||||
Value | Value | ||||||||||||||||||||||||
Non-vested at 12/31/13 | 66,580 | $ | 56.92 | 63,030 | $ | 56.93 | |||||||||||||||||||
Granted | 22,990 | 53.65 | 21,790 | 53.65 | |||||||||||||||||||||
Vested | (20,900 | ) | 50.74 | (19,800 | ) | 50.75 | |||||||||||||||||||
Forfeited | (3,247 | ) | 58.06 | (2,847 | ) | 58.27 | |||||||||||||||||||
Non-vested at 12/31/14 | 65,423 | $ | 57.65 | 62,173 | $ | 57.64 | |||||||||||||||||||
The total expense to be recognized by Con Edison in future periods for unvested time-based awards outstanding as of December 31, 2014 for Con Edison was $2 million, including $2 million for CECONY, and is expected to be recognized over a weighted average period of one year. | |||||||||||||||||||||||||
Under the LTIP, each non-employee director receives stock units, which are deferred until the director’s separation from service or another date specified by the director. Each director may also elect to defer all or a portion of their cash compensation into additional stock units, which are deferred until the director’s termination of service or another date specified by the director. Non-employee directors’ stock units issued under the LTIP are considered “equity awards,” because they may only be settled in shares. Directors immediately vest in units issued to them. The fair value of the units is determined using the closing price of Con Edison’s common stock on the business day immediately preceding the date of issue. In the year ended December 31, 2014, approximately 37,972 units were issued at a weighted average grant date price of $55.51. | |||||||||||||||||||||||||
Stock Purchase Plan | |||||||||||||||||||||||||
The Stock Purchase Plan, which was approved by shareholders in 2004 and 2014, provides for the Companies to contribute up to $1 for each $9 invested by their directors, officers or employees to purchase Con Edison common stock under the plan. Eligible participants may invest up to $25,000 during any calendar year (subject to an additional limitation for officers and employees of not more than 20 percent of their pay). Dividends paid on shares held under the plan are reinvested in additional shares unless otherwise directed by the participant. | |||||||||||||||||||||||||
Participants in the plan immediately vest in shares purchased by them under the plan. The fair value of the shares of Con Edison common stock purchased under the plan was calculated using the average of the high and low composite sale prices at which shares were traded at the New York Stock Exchange on the trading day immediately preceding such purchase dates. During 2014, 2013 and 2012, 708,276, 864,281 and 665,718 shares were purchased under the Stock Purchase Plan at a weighted average price of $56.23, $57.24 and $59.72 per share, respectively. |
Financial_Information_by_Busin
Financial Information by Business Segment | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Financial Information by Business Segment | Note N – Financial Information by Business Segment | ||||||||||||||||||||||||||||||||
The business segments of each of the Companies, which are its operating segments, were determined based on management’s reporting and decision-making requirements in accordance with the accounting rules for segment reporting. | |||||||||||||||||||||||||||||||||
Con Edison’s principal business segments are CECONY’s regulated utility activities, O&R’s regulated utility activities and Con Edison’s competitive energy businesses. CECONY’s principal business segments are its regulated electric, gas and steam utility activities. | |||||||||||||||||||||||||||||||||
All revenues of these business segments are from customers located in the United States of America. Also, all assets of the business segments are located in the United States of America. The accounting policies of the segments are the same as those described in Note A. | |||||||||||||||||||||||||||||||||
Common services shared by the business segments are assigned directly or allocated based on various cost factors, depending on the nature of the service provided. | |||||||||||||||||||||||||||||||||
The financial data for the business segments are as follows: | |||||||||||||||||||||||||||||||||
As of and for the Year Ended | Operating | Inter- | Depreciation | Operating | Interest | Income | Total | Construction | |||||||||||||||||||||||||
December 31, 2014 | revenues | segment | and | income | charges | taxes on | assets(b) | expenditures | |||||||||||||||||||||||||
(Millions of Dollars) | revenues | amortization | operating | ||||||||||||||||||||||||||||||
income(a) | |||||||||||||||||||||||||||||||||
CECONY | |||||||||||||||||||||||||||||||||
Electric | $ | 8,437 | $ | 16 | $ | 781 | $ | 1,712 | $ | 412 | $ | 425 | $ | 30,421 | $ | 1,500 | |||||||||||||||||
Gas | 1,721 | 6 | 132 | 314 | 89 | 88 | 6,530 | 549 | |||||||||||||||||||||||||
Steam | 628 | 84 | 78 | 113 | 36 | 49 | 2,686 | 83 | |||||||||||||||||||||||||
Consolidation adjustments | - | (106 | ) | - | - | - | - | - | - | ||||||||||||||||||||||||
Total CECONY | $ | 10,786 | $ | - | $ | 991 | $ | 2,139 | $ | 537 | $ | 562 | $ | 39,637 | $ | 2,132 | |||||||||||||||||
O&R | |||||||||||||||||||||||||||||||||
Electric | $ | 680 | $ | - | $ | 46 | $ | 103 | $ | 24 | $ | 29 | $ | 2,042 | $ | 105 | |||||||||||||||||
Gas | 212 | - | 15 | 25 | 10 | 6 | 794 | 37 | |||||||||||||||||||||||||
Other(b) | - | - | - | - | 1 | - | 1 | - | |||||||||||||||||||||||||
Total O&R | $ | 892 | $ | - | $ | 61 | $ | 128 | $ | 35 | $ | 35 | $ | 2,837 | $ | 142 | |||||||||||||||||
Competitive energy businesses | $ | 1,244 | $ | (10 | ) | $ | 19 | $ | (60 | ) | $ | (8 | ) | $ | (8 | ) | $ | 1,026 | $ | 447 | |||||||||||||
Other(c) | (3 | ) | 10 | - | 2 | 27 | - | 808 | - | ||||||||||||||||||||||||
Total Con Edison | $ | 12,919 | $ | - | $ | 1,071 | $ | 2,209 | $ | 591 | $ | 589 | $ | 44,308 | $ | 2,721 | |||||||||||||||||
As of and for the Year Ended | Operating | Inter- | Depreciation | Operating | Interest | Income | Total | Construction | |||||||||||||||||||||||||
December 31, 2013 | revenues | segment | and | income | charges | taxes on | assets(b) | expenditures | |||||||||||||||||||||||||
(Millions of Dollars) | revenues | amortization | operating | ||||||||||||||||||||||||||||||
income(a) | |||||||||||||||||||||||||||||||||
CECONY | |||||||||||||||||||||||||||||||||
Electric | $ | 8,131 | $ | 16 | $ | 749 | $ | 1,595 | $ | 402 | $ | 380 | $ | 27,673 | $ | 1,471 | |||||||||||||||||
Gas | 1,616 | 5 | 130 | 362 | 83 | 112 | 6,008 | 536 | |||||||||||||||||||||||||
Steam | 683 | 82 | 67 | 103 | 36 | 39 | 2,577 | 128 | |||||||||||||||||||||||||
Consolidation adjustments | - | (103 | ) | - | - | - | - | - | - | ||||||||||||||||||||||||
Total CECONY | $ | 10,430 | $ | - | $ | 946 | $ | 2,060 | $ | 521 | $ | 531 | $ | 36,258 | $ | 2,135 | |||||||||||||||||
O&R | |||||||||||||||||||||||||||||||||
Electric | $ | 628 | $ | - | $ | 41 | $ | 87 | $ | 25 | $ | 13 | $ | 1,898 | $ | 98 | |||||||||||||||||
Gas | 205 | - | 15 | 33 | 11 | 7 | 645 | 37 | |||||||||||||||||||||||||
Other(b) | - | - | - | - | 1 | - | 2 | - | |||||||||||||||||||||||||
Total O&R | $ | 833 | $ | - | $ | 56 | $ | 120 | $ | 37 | $ | 20 | $ | 2,545 | $ | 135 | |||||||||||||||||
Competitive energy businesses | $ | 1,096 | $ | 5 | $ | 23 | $ | 63 | $ | 135 | $ | (41 | ) | $ | 1,314 | $ | 378 | ||||||||||||||||
Other(c) | (5 | ) | (5 | ) | (1 | ) | 1 | 26 | (6 | ) | 530 | - | |||||||||||||||||||||
Total Con Edison | $ | 12,354 | $ | - | $ | 1,024 | $ | 2,244 | $ | 719 | $ | 504 | $ | 40,647 | $ | 2,648 | |||||||||||||||||
As of and for the Year Ended | Operating | Inter- | Depreciation | Operating | Interest | Income | Total | Construction | |||||||||||||||||||||||||
December 31, 2012 | revenues | segment | and | income | charges | taxes on | assets(b) | expenditures | |||||||||||||||||||||||||
(Millions of Dollars) | revenues | amortization | operating | ||||||||||||||||||||||||||||||
income(a) | |||||||||||||||||||||||||||||||||
CECONY | |||||||||||||||||||||||||||||||||
Electric | $ | 8,176 | $ | 15 | $ | 710 | $ | 1,693 | $ | 423 | $ | 393 | $ | 28,339 | $ | 1,375 | |||||||||||||||||
Gas | 1,415 | 5 | 120 | 346 | 82 | 99 | 5,925 | 426 | |||||||||||||||||||||||||
Steam | 596 | 77 | 64 | 54 | 40 | 22 | 2,621 | 108 | |||||||||||||||||||||||||
Consolidation adjustments | - | (97 | ) | - | - | - | - | - | - | ||||||||||||||||||||||||
Total CECONY | $ | 10,187 | $ | - | $ | 894 | $ | 2,093 | $ | 545 | $ | 514 | $ | 36,885 | $ | 1,909 | |||||||||||||||||
O&R | |||||||||||||||||||||||||||||||||
Electric | $ | 592 | $ | - | $ | 38 | $ | 83 | $ | 19 | $ | 17 | $ | 1,960 | $ | 98 | |||||||||||||||||
Gas | 203 | - | 15 | 40 | 10 | 11 | 706 | 39 | |||||||||||||||||||||||||
Other(b) | - | - | - | - | 2 | - | 5 | - | |||||||||||||||||||||||||
Total O&R | $ | 795 | $ | - | $ | 53 | $ | 123 | $ | 31 | $ | 28 | $ | 2,671 | $ | 137 | |||||||||||||||||
Competitive energy businesses | $ | 1,213 | $ | 8 | $ | 8 | $ | 125 | $ | 1 | $ | 52 | $ | 1,061 | $ | 492 | |||||||||||||||||
Other(c) | (7 | ) | (8 | ) | - | (2 | ) | 27 | - | 592 | - | ||||||||||||||||||||||
Total Con Edison | $ | 12,188 | $ | - | $ | 955 | $ | 2,339 | $ | 604 | $ | 594 | $ | 41,209 | $ | 2,538 | |||||||||||||||||
(a) | For Con Edison, income taxes on non-operating income were $(21), $(28) and $6 million in 2014, 2013 and 2012, respectively. For CECONY, income taxes on non-operating income were $(7), $(11) and $15 million in 2014, 2013 and 2012, respectively. | ||||||||||||||||||||||||||||||||
(b) | Includes amounts related to the RECO securitization. | ||||||||||||||||||||||||||||||||
(c) | Parent company and consolidation adjustments. Other does not represent a business segment. | ||||||||||||||||||||||||||||||||
CECONY [Member] | |||||||||||||||||||||||||||||||||
Financial Information by Business Segment | Note N – Financial Information by Business Segment | ||||||||||||||||||||||||||||||||
The business segments of each of the Companies, which are its operating segments, were determined based on management’s reporting and decision-making requirements in accordance with the accounting rules for segment reporting. | |||||||||||||||||||||||||||||||||
Con Edison’s principal business segments are CECONY’s regulated utility activities, O&R’s regulated utility activities and Con Edison’s competitive energy businesses. CECONY’s principal business segments are its regulated electric, gas and steam utility activities. | |||||||||||||||||||||||||||||||||
All revenues of these business segments are from customers located in the United States of America. Also, all assets of the business segments are located in the United States of America. The accounting policies of the segments are the same as those described in Note A. | |||||||||||||||||||||||||||||||||
Common services shared by the business segments are assigned directly or allocated based on various cost factors, depending on the nature of the service provided. | |||||||||||||||||||||||||||||||||
The financial data for the business segments are as follows: | |||||||||||||||||||||||||||||||||
As of and for the Year Ended | Operating | Inter- | Depreciation | Operating | Interest | Income | Total | Construction | |||||||||||||||||||||||||
December 31, 2014 | revenues | segment | and | income | charges | taxes on | assets(b) | expenditures | |||||||||||||||||||||||||
(Millions of Dollars) | revenues | amortization | operating | ||||||||||||||||||||||||||||||
income(a) | |||||||||||||||||||||||||||||||||
CECONY | |||||||||||||||||||||||||||||||||
Electric | $ | 8,437 | $ | 16 | $ | 781 | $ | 1,712 | $ | 412 | $ | 425 | $ | 30,421 | $ | 1,500 | |||||||||||||||||
Gas | 1,721 | 6 | 132 | 314 | 89 | 88 | 6,530 | 549 | |||||||||||||||||||||||||
Steam | 628 | 84 | 78 | 113 | 36 | 49 | 2,686 | 83 | |||||||||||||||||||||||||
Consolidation adjustments | - | (106 | ) | - | - | - | - | - | - | ||||||||||||||||||||||||
Total CECONY | $ | 10,786 | $ | - | $ | 991 | $ | 2,139 | $ | 537 | $ | 562 | $ | 39,637 | $ | 2,132 | |||||||||||||||||
O&R | |||||||||||||||||||||||||||||||||
Electric | $ | 680 | $ | - | $ | 46 | $ | 103 | $ | 24 | $ | 29 | $ | 2,042 | $ | 105 | |||||||||||||||||
Gas | 212 | - | 15 | 25 | 10 | 6 | 794 | 37 | |||||||||||||||||||||||||
Other(b) | - | - | - | - | 1 | - | 1 | - | |||||||||||||||||||||||||
Total O&R | $ | 892 | $ | - | $ | 61 | $ | 128 | $ | 35 | $ | 35 | $ | 2,837 | $ | 142 | |||||||||||||||||
Competitive energy businesses | $ | 1,244 | $ | (10 | ) | $ | 19 | $ | (60 | ) | $ | (8 | ) | $ | (8 | ) | $ | 1,026 | $ | 447 | |||||||||||||
Other(c) | (3 | ) | 10 | - | 2 | 27 | - | 808 | - | ||||||||||||||||||||||||
Total Con Edison | $ | 12,919 | $ | - | $ | 1,071 | $ | 2,209 | $ | 591 | $ | 589 | $ | 44,308 | $ | 2,721 | |||||||||||||||||
As of and for the Year Ended | Operating | Inter- | Depreciation | Operating | Interest | Income | Total | Construction | |||||||||||||||||||||||||
December 31, 2013 | revenues | segment | and | income | charges | taxes on | assets(b) | expenditures | |||||||||||||||||||||||||
(Millions of Dollars) | revenues | amortization | operating | ||||||||||||||||||||||||||||||
income(a) | |||||||||||||||||||||||||||||||||
CECONY | |||||||||||||||||||||||||||||||||
Electric | $ | 8,131 | $ | 16 | $ | 749 | $ | 1,595 | $ | 402 | $ | 380 | $ | 27,673 | $ | 1,471 | |||||||||||||||||
Gas | 1,616 | 5 | 130 | 362 | 83 | 112 | 6,008 | 536 | |||||||||||||||||||||||||
Steam | 683 | 82 | 67 | 103 | 36 | 39 | 2,577 | 128 | |||||||||||||||||||||||||
Consolidation adjustments | - | (103 | ) | - | - | - | - | - | - | ||||||||||||||||||||||||
Total CECONY | $ | 10,430 | $ | - | $ | 946 | $ | 2,060 | $ | 521 | $ | 531 | $ | 36,258 | $ | 2,135 | |||||||||||||||||
O&R | |||||||||||||||||||||||||||||||||
Electric | $ | 628 | $ | - | $ | 41 | $ | 87 | $ | 25 | $ | 13 | $ | 1,898 | $ | 98 | |||||||||||||||||
Gas | 205 | - | 15 | 33 | 11 | 7 | 645 | 37 | |||||||||||||||||||||||||
Other(b) | - | - | - | - | 1 | - | 2 | - | |||||||||||||||||||||||||
Total O&R | $ | 833 | $ | - | $ | 56 | $ | 120 | $ | 37 | $ | 20 | $ | 2,545 | $ | 135 | |||||||||||||||||
Competitive energy businesses | $ | 1,096 | $ | 5 | $ | 23 | $ | 63 | $ | 135 | $ | (41 | ) | $ | 1,314 | $ | 378 | ||||||||||||||||
Other(c) | (5 | ) | (5 | ) | (1 | ) | 1 | 26 | (6 | ) | 530 | - | |||||||||||||||||||||
Total Con Edison | $ | 12,354 | $ | - | $ | 1,024 | $ | 2,244 | $ | 719 | $ | 504 | $ | 40,647 | $ | 2,648 | |||||||||||||||||
As of and for the Year Ended | Operating | Inter- | Depreciation | Operating | Interest | Income | Total | Construction | |||||||||||||||||||||||||
December 31, 2012 | revenues | segment | and | income | charges | taxes on | assets(b) | expenditures | |||||||||||||||||||||||||
(Millions of Dollars) | revenues | amortization | operating | ||||||||||||||||||||||||||||||
income(a) | |||||||||||||||||||||||||||||||||
CECONY | |||||||||||||||||||||||||||||||||
Electric | $ | 8,176 | $ | 15 | $ | 710 | $ | 1,693 | $ | 423 | $ | 393 | $ | 28,339 | $ | 1,375 | |||||||||||||||||
Gas | 1,415 | 5 | 120 | 346 | 82 | 99 | 5,925 | 426 | |||||||||||||||||||||||||
Steam | 596 | 77 | 64 | 54 | 40 | 22 | 2,621 | 108 | |||||||||||||||||||||||||
Consolidation adjustments | - | (97 | ) | - | - | - | - | - | - | ||||||||||||||||||||||||
Total CECONY | $ | 10,187 | $ | - | $ | 894 | $ | 2,093 | $ | 545 | $ | 514 | $ | 36,885 | $ | 1,909 | |||||||||||||||||
O&R | |||||||||||||||||||||||||||||||||
Electric | $ | 592 | $ | - | $ | 38 | $ | 83 | $ | 19 | $ | 17 | $ | 1,960 | $ | 98 | |||||||||||||||||
Gas | 203 | - | 15 | 40 | 10 | 11 | 706 | 39 | |||||||||||||||||||||||||
Other(b) | - | - | - | - | 2 | - | 5 | - | |||||||||||||||||||||||||
Total O&R | $ | 795 | $ | - | $ | 53 | $ | 123 | $ | 31 | $ | 28 | $ | 2,671 | $ | 137 | |||||||||||||||||
Competitive energy businesses | $ | 1,213 | $ | 8 | $ | 8 | $ | 125 | $ | 1 | $ | 52 | $ | 1,061 | $ | 492 | |||||||||||||||||
Other(c) | (7 | ) | (8 | ) | - | (2 | ) | 27 | - | 592 | - | ||||||||||||||||||||||
Total Con Edison | $ | 12,188 | $ | - | $ | 955 | $ | 2,339 | $ | 604 | $ | 594 | $ | 41,209 | $ | 2,538 | |||||||||||||||||
(a) | For Con Edison, income taxes on non-operating income were $(21), $(28) and $6 million in 2014, 2013 and 2012, respectively. For CECONY, income taxes on non-operating income were $(7), $(11) and $15 million in 2014, 2013 and 2012, respectively. | ||||||||||||||||||||||||||||||||
(b) | Includes amounts related to the RECO securitization. | ||||||||||||||||||||||||||||||||
(c) | Parent company and consolidation adjustments. Other does not represent a business segment. |
Derivative_Instruments_and_Hed
Derivative Instruments and Hedging Activities | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Derivative Instruments and Hedging Activities | Note O – Derivative Instruments and Hedging Activities | ||||||||||||||||||||||||
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. Derivatives are recognized on the balance sheet at fair value (See Note P), unless an exception is available under the accounting rules for derivatives and hedging. Qualifying derivative contracts that have been designated as normal purchases or normal sales contracts are not reported at fair value under the accounting rules. | |||||||||||||||||||||||||
The fair values of the Companies’ commodity derivatives including the offsetting of assets and liabilities on the consolidated balance sheet at December 31, 2014 and 2013 were: | |||||||||||||||||||||||||
(Millions of Dollars) | 2014 | 2013 | |||||||||||||||||||||||
Balance Sheet Location | Gross | Gross | Net Amounts | Gross | Gross | Net Amounts | |||||||||||||||||||
Amounts of | Amounts | of Assets/ | Amounts of | Amounts | of Assets/ | ||||||||||||||||||||
Recognized | Offset | (Liabilities)(a) | Recognized | Offset | (Liabilities)(a) | ||||||||||||||||||||
Assets/ | Assets/ | ||||||||||||||||||||||||
(Liabilities) | (Liabilities) | ||||||||||||||||||||||||
Con Edison | |||||||||||||||||||||||||
Fair value of derivative assets | |||||||||||||||||||||||||
Current | $ | 111 | $ | (67 | ) | $ | 44 | (b) | $ | 134 | $ | (77 | ) | $ | 57 | (b) | |||||||||
Non-current | 34 | (23 | ) | 11 | 32 | (24 | ) | 8 | |||||||||||||||||
Total fair value of derivative assets | $ | 145 | $ | (90 | ) | $ | 55 | $ | 166 | $ | (101 | ) | $ | 65 | |||||||||||
Fair value of derivative liabilities | |||||||||||||||||||||||||
Current | $ | (242 | ) | $ | 139 | $ | (103 | ) | $ | (82 | ) | $ | 72 | $ | (10 | ) | |||||||||
Non-current | (66 | ) | 91 | 25 | (31 | ) | 26 | (5 | ) | ||||||||||||||||
Total fair value of derivative liabilities | $ | (308 | ) | $ | 230 | $ | (78 | ) | $ | (113 | ) | $ | 98 | $ | (15 | ) | |||||||||
Net fair value derivative assets/(liabilities) | $ | (163 | ) | $ | 140 | $ | (23 | )(b) | $ | 53 | $ | (3 | ) | $ | 50 | (b) | |||||||||
CECONY | |||||||||||||||||||||||||
Fair value of derivative assets | |||||||||||||||||||||||||
Current | $ | 26 | $ | (15 | ) | $ | 11 | (b) | $ | 27 | $ | (19 | ) | $ | 8 | (b) | |||||||||
Non-current | 22 | (20 | ) | 2 | 14 | (13 | ) | 1 | |||||||||||||||||
Total fair value of derivative assets | $ | 48 | $ | (35 | ) | $ | 13 | $ | 41 | $ | (32 | ) | $ | 9 | |||||||||||
Fair value of derivative liabilities | |||||||||||||||||||||||||
Current | $ | (96 | ) | $ | 48 | $ | (48 | ) | $ | (32 | ) | $ | 21 | $ | (11 | ) | |||||||||
Non-current liabilities | (42 | ) | 32 | (10 | ) | (19 | ) | 16 | (3 | ) | |||||||||||||||
Total fair value of derivative liabilities | $ | (138 | ) | $ | 80 | $ | (58 | ) | $ | (51 | ) | $ | 37 | $ | (14 | ) | |||||||||
Net fair value derivative assets/(liabilities) | $ | (90 | ) | $ | 45 | $ | (45 | )(b) | $ | (10 | ) | $ | 5 | $ | (5 | )(b) | |||||||||
(a) | Derivative instruments and collateral were set off on the consolidated balance sheet as applicable under the accounting rules. The Companies enter into master agreements for their commodity derivatives. These agreements typically provide setoff in the event of contract termination. In such case, generally the non-defaulting party’s payable will be set-off by the defaulting party’s payable. The non-defaulting party will customarily notify the defaulting party within a specific time period and come to an agreement on the early termination amount. | ||||||||||||||||||||||||
(b) | At December 31, 2014 and 2013, margin deposits for Con Edison ($27 million and $17 million, respectively) and CECONY ($25 million and $16 million, respectively) were classified as derivative assets in the balance sheet, but not included in the table. Margin is collateral, typically cash, that the holder of a derivative instrument is required to deposit in order to transact on an exchange and to cover its potential losses with its broker or the exchange. | ||||||||||||||||||||||||
The Utilities generally recover their prudently incurred fuel, purchased power and gas costs, including hedging gains and losses, in accordance with rate provisions approved by the applicable state utility regulators. See “Recoverable Energy Costs” in Note A. In accordance with the accounting rules for regulated operations, the Utilities record a regulatory asset or liability to defer recognition of unrealized gains and losses on their electric and gas derivatives. As gains and losses are realized in future periods, they will be recognized as purchased power, gas and fuel costs in the Companies’ consolidated income statements. Con Edison’s competitive energy businesses record realized and unrealized gains and losses on their derivative contracts in purchased power, gas purchased for resale and non-utility revenue in the reporting period in which they occur. Management believes that these derivative instruments represent economic hedges that mitigate exposure to fluctuations in commodity prices. | |||||||||||||||||||||||||
The following table presents the realized and unrealized gains or losses on commodity derivatives that have been deferred or recognized in earnings for the years ended December 31, 2014 and 2013: | |||||||||||||||||||||||||
Con Edison | CECONY | ||||||||||||||||||||||||
(Millions of Dollars) | Balance Sheet Location | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
Pre-tax gains/(losses) deferred in accordance with accounting rules for regulated operations: | |||||||||||||||||||||||||
Current | Deferred derivative gains | $ | (10 | ) | $ | 14 | $ | (7 | ) | $ | 11 | ||||||||||||||
Long-term | Deferred derivative gains | 1 | - | 1 | - | ||||||||||||||||||||
Total deferred gains/(losses) | $ | (9 | ) | $ | 14 | $ | (6 | ) | $ | 11 | |||||||||||||||
Current | Deferred derivative losses | $ | (75 | ) | $ | 47 | $ | (70 | ) | $ | 38 | ||||||||||||||
Current | Recoverable energy costs | 36 | (39 | ) | 26 | (37 | ) | ||||||||||||||||||
Long-term | Deferred derivative losses | (17 | ) | 27 | (17 | ) | 13 | ||||||||||||||||||
Total deferred gains/(losses) | $ | (56 | ) | $ | 35 | $ | (61 | ) | $ | 14 | |||||||||||||||
Net deferred gains/(losses) | $ | (65 | ) | $ | 49 | $ | (67 | ) | $ | 25 | |||||||||||||||
Income Statement Location | |||||||||||||||||||||||||
Pre-tax gain/(loss) recognized in income | |||||||||||||||||||||||||
Purchased power expense | $ | (37 | )(a) | $ | 90 | (a) | $ | - | $ | - | |||||||||||||||
Gas purchased for resale | (115 | ) | (27 | ) | - | - | |||||||||||||||||||
Non-utility revenue | 29 | (a) | 9 | (a) | - | - | |||||||||||||||||||
Total pre-tax gain/(loss) recognized in income | $ | (123 | ) | $ | 72 | $ | - | $ | - | ||||||||||||||||
(a) | Con Edison recorded unrealized gains and losses in non-utility operating revenue ($4 million gain and an immaterial gain) and purchased power expense ($132 million loss and $74 million gain) for the years ended December 31, 2014 and 2013, respectively. | ||||||||||||||||||||||||
The following table presents the hedged volume of Con Edison’s and CECONY’s derivative transactions at December 31, 2014: | |||||||||||||||||||||||||
Electric Energy (MWHs)(a)(b) | Capacity (MWs)(a) | Natural Gas (Dt)(a)(b) | |||||||||||||||||||||||
Con Edison | 17,792,555 | 7,706 | 66,793,011 | ||||||||||||||||||||||
CECONY | 5,543,250 | 2,100 | 62,065,000 | ||||||||||||||||||||||
(a) | Volumes are reported net of long and short positions, except natural gas collars where the volumes of long positions are reported. | ||||||||||||||||||||||||
(b) | Excludes electric congestion and gas basis swap contracts which are associated with electric and gas contracts and hedged volumes. | ||||||||||||||||||||||||
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. Credit risk relates to the loss that may result from a counterparty’s nonperformance. 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. The Companies measure credit risk exposure as the replacement cost for open energy commodity and derivative positions plus amounts owed from counterparties for settled transactions. The replacement cost of open positions represents unrealized gains, net of any unrealized losses where the Companies have a legally enforceable right of setoff. | |||||||||||||||||||||||||
At December 31, 2014, Con Edison and CECONY had $148 million and $25 million of credit exposure in connection with energy supply and hedging activities, net of collateral, respectively. Con Edison’s net credit exposure consisted of $79 million with commodity exchange brokers, $45 million with independent system operators, $20 million with investment-grade counterparties and $4 million with non-investment grade/non-rated counterparties. CECONY’s net credit exposure was with commodity exchange brokers. | |||||||||||||||||||||||||
The collateral requirements associated with, and settlement of, derivative transactions are included in net cash flows from operating activities in the Companies’ consolidated statement of cash flows. Most derivative instrument contracts contain provisions that may require a party to provide collateral on its derivative instruments that are in a net liability position. The amount of collateral to be provided will depend on the fair value of the derivative instruments and the party’s credit ratings. | |||||||||||||||||||||||||
The following table presents the aggregate fair value of the Companies’ derivative instruments with credit-risk-related contingent features that are in a net liability position, the collateral posted for such positions and the additional collateral that would have been required to be posted had the lowest applicable credit rating been reduced one level and to below investment grade at December 31, 2014: | |||||||||||||||||||||||||
(Millions of Dollars) | Con Edison(a) | CECONY(a) | |||||||||||||||||||||||
Aggregate fair value – net liabilities | $ | 78 | $ | 58 | |||||||||||||||||||||
Collateral posted | $ | 1 | $ | - | |||||||||||||||||||||
Additional collateral(b) (downgrade one level from current ratings) | $ | 6 | $ | 2 | |||||||||||||||||||||
Additional collateral(b) (downgrade to below investment grade from current ratings) | $ | 105 | (c) | $ | 63 | (c) | |||||||||||||||||||
(a) | Non-derivative transactions for the purchase and sale of electricity and gas and qualifying derivative instruments, which have been designated as normal purchases or normal sales, are excluded from the table. These transactions primarily include purchases of electricity from independent system operators. In the event the Utilities and Con Edison’s competitive energy businesses were no longer extended unsecured credit for such purchases, the Companies would be required to post collateral, which at December 31, 2014, would have amounted to an estimated $16 million for Con Edison, including $3 million for CECONY. For certain other such non-derivative transactions, the Companies could be required to post collateral under certain circumstances, including in the event counterparties had reasonable grounds for insecurity. | ||||||||||||||||||||||||
(b) | The Companies measure the collateral requirements by taking into consideration the fair value amounts of derivative instruments that contain credit-risk-related contingent features that are in a net liabilities position plus amounts owed to counterparties for settled transactions and amounts required by counterparties for minimum financial security. The fair value amounts represent unrealized losses, net of any unrealized gains where the Companies have a legally enforceable right of setoff. | ||||||||||||||||||||||||
(c) | Derivative instruments that are net assets have been excluded from the table. At December 31, 2014, if Con Edison had been downgraded to below investment grade, it would have been required to post additional collateral for such derivative instruments of $15 million. | ||||||||||||||||||||||||
CECONY [Member] | |||||||||||||||||||||||||
Derivative Instruments and Hedging Activities | Note O – Derivative Instruments and Hedging Activities | ||||||||||||||||||||||||
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. Derivatives are recognized on the balance sheet at fair value (See Note P), unless an exception is available under the accounting rules for derivatives and hedging. Qualifying derivative contracts that have been designated as normal purchases or normal sales contracts are not reported at fair value under the accounting rules. | |||||||||||||||||||||||||
The fair values of the Companies’ commodity derivatives including the offsetting of assets and liabilities on the consolidated balance sheet at December 31, 2014 and 2013 were: | |||||||||||||||||||||||||
(Millions of Dollars) | 2014 | 2013 | |||||||||||||||||||||||
Balance Sheet Location | Gross | Gross | Net Amounts | Gross | Gross | Net Amounts | |||||||||||||||||||
Amounts of | Amounts | of Assets/ | Amounts of | Amounts | of Assets/ | ||||||||||||||||||||
Recognized | Offset | (Liabilities)(a) | Recognized | Offset | (Liabilities)(a) | ||||||||||||||||||||
Assets/ | Assets/ | ||||||||||||||||||||||||
(Liabilities) | (Liabilities) | ||||||||||||||||||||||||
Con Edison | |||||||||||||||||||||||||
Fair value of derivative assets | |||||||||||||||||||||||||
Current | $ | 111 | $ | (67 | ) | $ | 44 | (b) | $ | 134 | $ | (77 | ) | $ | 57 | (b) | |||||||||
Non-current | 34 | (23 | ) | 11 | 32 | (24 | ) | 8 | |||||||||||||||||
Total fair value of derivative assets | $ | 145 | $ | (90 | ) | $ | 55 | $ | 166 | $ | (101 | ) | $ | 65 | |||||||||||
Fair value of derivative liabilities | |||||||||||||||||||||||||
Current | $ | (242 | ) | $ | 139 | $ | (103 | ) | $ | (82 | ) | $ | 72 | $ | (10 | ) | |||||||||
Non-current | (66 | ) | 91 | 25 | (31 | ) | 26 | (5 | ) | ||||||||||||||||
Total fair value of derivative liabilities | $ | (308 | ) | $ | 230 | $ | (78 | ) | $ | (113 | ) | $ | 98 | $ | (15 | ) | |||||||||
Net fair value derivative assets/(liabilities) | $ | (163 | ) | $ | 140 | $ | (23 | )(b) | $ | 53 | $ | (3 | ) | $ | 50 | (b) | |||||||||
CECONY | |||||||||||||||||||||||||
Fair value of derivative assets | |||||||||||||||||||||||||
Current | $ | 26 | $ | (15 | ) | $ | 11 | (b) | $ | 27 | $ | (19 | ) | $ | 8 | (b) | |||||||||
Non-current | 22 | (20 | ) | 2 | 14 | (13 | ) | 1 | |||||||||||||||||
Total fair value of derivative assets | $ | 48 | $ | (35 | ) | $ | 13 | $ | 41 | $ | (32 | ) | $ | 9 | |||||||||||
Fair value of derivative liabilities | |||||||||||||||||||||||||
Current | $ | (96 | ) | $ | 48 | $ | (48 | ) | $ | (32 | ) | $ | 21 | $ | (11 | ) | |||||||||
Non-current liabilities | (42 | ) | 32 | (10 | ) | (19 | ) | 16 | (3 | ) | |||||||||||||||
Total fair value of derivative liabilities | $ | (138 | ) | $ | 80 | $ | (58 | ) | $ | (51 | ) | $ | 37 | $ | (14 | ) | |||||||||
Net fair value derivative assets/(liabilities) | $ | (90 | ) | $ | 45 | $ | (45 | )(b) | $ | (10 | ) | $ | 5 | $ | (5 | )(b) | |||||||||
(a) | Derivative instruments and collateral were set off on the consolidated balance sheet as applicable under the accounting rules. The Companies enter into master agreements for their commodity derivatives. These agreements typically provide setoff in the event of contract termination. In such case, generally the non-defaulting party’s payable will be set-off by the defaulting party’s payable. The non-defaulting party will customarily notify the defaulting party within a specific time period and come to an agreement on the early termination amount. | ||||||||||||||||||||||||
(b) | At December 31, 2014 and 2013, margin deposits for Con Edison ($27 million and $17 million, respectively) and CECONY ($25 million and $16 million, respectively) were classified as derivative assets in the balance sheet, but not included in the table. Margin is collateral, typically cash, that the holder of a derivative instrument is required to deposit in order to transact on an exchange and to cover its potential losses with its broker or the exchange. | ||||||||||||||||||||||||
The Utilities generally recover their prudently incurred fuel, purchased power and gas costs, including hedging gains and losses, in accordance with rate provisions approved by the applicable state utility regulators. See “Recoverable Energy Costs” in Note A. In accordance with the accounting rules for regulated operations, the Utilities record a regulatory asset or liability to defer recognition of unrealized gains and losses on their electric and gas derivatives. As gains and losses are realized in future periods, they will be recognized as purchased power, gas and fuel costs in the Companies’ consolidated income statements. Con Edison’s competitive energy businesses record realized and unrealized gains and losses on their derivative contracts in purchased power, gas purchased for resale and non-utility revenue in the reporting period in which they occur. Management believes that these derivative instruments represent economic hedges that mitigate exposure to fluctuations in commodity prices. | |||||||||||||||||||||||||
The following table presents the realized and unrealized gains or losses on commodity derivatives that have been deferred or recognized in earnings for the years ended December 31, 2014 and 2013: | |||||||||||||||||||||||||
Con Edison | CECONY | ||||||||||||||||||||||||
(Millions of Dollars) | Balance Sheet Location | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
Pre-tax gains/(losses) deferred in accordance with accounting rules for regulated operations: | |||||||||||||||||||||||||
Current | Deferred derivative gains | $ | (10 | ) | $ | 14 | $ | (7 | ) | $ | 11 | ||||||||||||||
Long-term | Deferred derivative gains | 1 | - | 1 | - | ||||||||||||||||||||
Total deferred gains/(losses) | $ | (9 | ) | $ | 14 | $ | (6 | ) | $ | 11 | |||||||||||||||
Current | Deferred derivative losses | $ | (75 | ) | $ | 47 | $ | (70 | ) | $ | 38 | ||||||||||||||
Current | Recoverable energy costs | 36 | (39 | ) | 26 | (37 | ) | ||||||||||||||||||
Long-term | Deferred derivative losses | (17 | ) | 27 | (17 | ) | 13 | ||||||||||||||||||
Total deferred gains/(losses) | $ | (56 | ) | $ | 35 | $ | (61 | ) | $ | 14 | |||||||||||||||
Net deferred gains/(losses) | $ | (65 | ) | $ | 49 | $ | (67 | ) | $ | 25 | |||||||||||||||
Income Statement Location | |||||||||||||||||||||||||
Pre-tax gain/(loss) recognized in income | |||||||||||||||||||||||||
Purchased power expense | $ | (37 | )(a) | $ | 90 | (a) | $ | - | $ | - | |||||||||||||||
Gas purchased for resale | (115 | ) | (27 | ) | - | - | |||||||||||||||||||
Non-utility revenue | 29 | (a) | 9 | (a) | - | - | |||||||||||||||||||
Total pre-tax gain/(loss) recognized in income | $ | (123 | ) | $ | 72 | $ | - | $ | - | ||||||||||||||||
(a) | Con Edison recorded unrealized gains and losses in non-utility operating revenue ($4 million gain and an immaterial gain) and purchased power expense ($132 million loss and $74 million gain) for the years ended December 31, 2014 and 2013, respectively. | ||||||||||||||||||||||||
The following table presents the hedged volume of Con Edison’s and CECONY’s derivative transactions at December 31, 2014: | |||||||||||||||||||||||||
Electric Energy (MWHs)(a)(b) | Capacity (MWs)(a) | Natural Gas (Dt)(a)(b) | |||||||||||||||||||||||
Con Edison | 17,792,555 | 7,706 | 66,793,011 | ||||||||||||||||||||||
CECONY | 5,543,250 | 2,100 | 62,065,000 | ||||||||||||||||||||||
(a) | Volumes are reported net of long and short positions, except natural gas collars where the volumes of long positions are reported. | ||||||||||||||||||||||||
(b) | Excludes electric congestion and gas basis swap contracts which are associated with electric and gas contracts and hedged volumes. | ||||||||||||||||||||||||
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. Credit risk relates to the loss that may result from a counterparty’s nonperformance. 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. The Companies measure credit risk exposure as the replacement cost for open energy commodity and derivative positions plus amounts owed from counterparties for settled transactions. The replacement cost of open positions represents unrealized gains, net of any unrealized losses where the Companies have a legally enforceable right of setoff. | |||||||||||||||||||||||||
At December 31, 2014, Con Edison and CECONY had $148 million and $25 million of credit exposure in connection with energy supply and hedging activities, net of collateral, respectively. Con Edison’s net credit exposure consisted of $79 million with commodity exchange brokers, $45 million with independent system operators, $20 million with investment-grade counterparties and $4 million with non-investment grade/non-rated counterparties. CECONY’s net credit exposure was with commodity exchange brokers. | |||||||||||||||||||||||||
The collateral requirements associated with, and settlement of, derivative transactions are included in net cash flows from operating activities in the Companies’ consolidated statement of cash flows. Most derivative instrument contracts contain provisions that may require a party to provide collateral on its derivative instruments that are in a net liability position. The amount of collateral to be provided will depend on the fair value of the derivative instruments and the party’s credit ratings. | |||||||||||||||||||||||||
The following table presents the aggregate fair value of the Companies’ derivative instruments with credit-risk-related contingent features that are in a net liability position, the collateral posted for such positions and the additional collateral that would have been required to be posted had the lowest applicable credit rating been reduced one level and to below investment grade at December 31, 2014: | |||||||||||||||||||||||||
(Millions of Dollars) | Con Edison(a) | CECONY(a) | |||||||||||||||||||||||
Aggregate fair value – net liabilities | $ | 78 | $ | 58 | |||||||||||||||||||||
Collateral posted | $ | 1 | $ | - | |||||||||||||||||||||
Additional collateral(b) (downgrade one level from current ratings) | $ | 6 | $ | 2 | |||||||||||||||||||||
Additional collateral(b) (downgrade to below investment grade from current ratings) | $ | 105 | (c) | $ | 63 | (c) | |||||||||||||||||||
(a) | Non-derivative transactions for the purchase and sale of electricity and gas and qualifying derivative instruments, which have been designated as normal purchases or normal sales, are excluded from the table. These transactions primarily include purchases of electricity from independent system operators. In the event the Utilities and Con Edison’s competitive energy businesses were no longer extended unsecured credit for such purchases, the Companies would be required to post collateral, which at December 31, 2014, would have amounted to an estimated $16 million for Con Edison, including $3 million for CECONY. For certain other such non-derivative transactions, the Companies could be required to post collateral under certain circumstances, including in the event counterparties had reasonable grounds for insecurity. | ||||||||||||||||||||||||
(b) | The Companies measure the collateral requirements by taking into consideration the fair value amounts of derivative instruments that contain credit-risk-related contingent features that are in a net liabilities position plus amounts owed to counterparties for settled transactions and amounts required by counterparties for minimum financial security. The fair value amounts represent unrealized losses, net of any unrealized gains where the Companies have a legally enforceable right of setoff. | ||||||||||||||||||||||||
(c) | Derivative instruments that are net assets have been excluded from the table. At December 31, 2014, if Con Edison had been downgraded to below investment grade, it would have been required to post additional collateral for such derivative instruments of $15 million. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Note P – Fair Value Measurements | ||||||||||||||||||||||||||||||||||||||||
The accounting rules for fair value measurements and disclosures define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in a principal or most advantageous market. Fair value is a market-based measurement that is determined based on inputs, which refer broadly to assumptions that market participants use in pricing assets or liabilities. These inputs can be readily observable, market corroborated, or generally unobservable firm inputs. The Companies often make certain assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, and the risks inherent in the inputs to valuation techniques. The Companies use valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. | |||||||||||||||||||||||||||||||||||||||||
The accounting rules for fair value measurements and disclosures established a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value in three broad levels. The rules require that assets and liabilities be classified in their entirety based on the level of input that is significant to the fair value measurement. Assessing the significance of a particular input may require judgment considering factors specific to the asset or liability, and may affect the valuation of the asset or liability and their placement within the fair value hierarchy. The Companies classify fair value balances based on the fair value hierarchy defined by the accounting rules for fair value measurements and disclosures as follows: | |||||||||||||||||||||||||||||||||||||||||
• | Level 1 – Consists of assets or liabilities whose value is based on unadjusted quoted prices in active markets at the measurement date. An active market is one in which transactions for assets or liabilities occur with sufficient frequency and volume to provide pricing information on an ongoing basis. This category includes contracts traded on active exchange markets valued using unadjusted prices quoted directly from the exchange. | ||||||||||||||||||||||||||||||||||||||||
• | Level 2 – Consists of assets or liabilities valued using industry standard models and based on prices, other than quoted prices within Level 1, that are either directly or indirectly observable as of the measurement date. The industry standard models consider observable assumptions including time value, volatility factors, and current market and contractual prices for the underlying commodities, in addition to other economic measures. This category includes contracts traded on active exchanges or in over-the-counter markets priced with industry standard models. | ||||||||||||||||||||||||||||||||||||||||
• | Level 3 – Consists of assets or liabilities whose fair value is estimated based on internally developed models or methodologies using inputs that are generally less readily observable and supported by little, if any, market activity at the measurement date. Unobservable inputs are developed based on the best available information and subject to cost benefit constraints. This category includes contracts priced using models that are internally developed and contracts placed in illiquid markets. It also includes contracts that expire after the period of time for which quoted prices are available and internal models are used to determine a significant portion of the value. | ||||||||||||||||||||||||||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis for the years ended December 31, 2014 and 2013 are summarized below. | |||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||||||||||
(Millions of Dollars) | Level 1 | Level 2 | Level 3 | Netting | Total | Level 1 | Level 2 | Level 3 | Netting | Total | |||||||||||||||||||||||||||||||
Adjustment(e) | Adjustment(e) | ||||||||||||||||||||||||||||||||||||||||
Con Edison | |||||||||||||||||||||||||||||||||||||||||
Derivative assets: | |||||||||||||||||||||||||||||||||||||||||
Commodity(a)(b)(c) | $ | 3 | $ | 78 | $ | 28 | $ | (27 | ) | $ | 82 | $ | 3 | $ | 130 | $ | 11 | $ | (62 | ) | $ | 82 | |||||||||||||||||||
Other(a)(b)(d) | 163 | 116 | - | - | 279 | 141 | 113 | - | - | 254 | |||||||||||||||||||||||||||||||
Total assets | $ | 166 | $ | 194 | $ | 28 | $ | (27 | ) | $ | 361 | $ | 144 | $ | 243 | $ | 11 | $ | (62 | ) | $ | 336 | |||||||||||||||||||
Derivative liabilities: | |||||||||||||||||||||||||||||||||||||||||
Commodity(a)(b)(c) | $ | 18 | $ | 246 | $ | 8 | $ | (194 | ) | $ | 78 | $ | 5 | $ | 84 | $ | 2 | $ | (76 | ) | $ | 15 | |||||||||||||||||||
Interest rate contract(a)(b) | - | - | - | - | - | - | 2 | - | - | 2 | |||||||||||||||||||||||||||||||
Total liabilities | $ | 18 | $ | 246 | $ | 8 | $ | (194 | ) | $ | 78 | $ | 5 | $ | 86 | $ | 2 | $ | (76 | ) | $ | 17 | |||||||||||||||||||
CECONY | |||||||||||||||||||||||||||||||||||||||||
Derivative assets | |||||||||||||||||||||||||||||||||||||||||
Commodity(a)(b)(c) | $ | 1 | $ | 3 | $ | 13 | $ | 21 | $ | 38 | $ | 3 | $ | 13 | $ | 6 | $ | 3 | $ | 25 | |||||||||||||||||||||
Other(a)(b)(d) | 155 | 106 | - | - | 261 | 134 | 103 | - | - | 237 | |||||||||||||||||||||||||||||||
Total assets | $ | 156 | $ | 109 | $ | 13 | $ | 21 | $ | 299 | $ | 137 | $ | 116 | $ | 6 | $ | 3 | $ | 262 | |||||||||||||||||||||
Derivative liabilities: | |||||||||||||||||||||||||||||||||||||||||
Commodity(a)(b)(c) | $ | 16 | $ | 91 | $ | - | $ | (49 | ) | $ | 58 | $ | 5 | $ | 27 | $ | - | $ | (18 | ) | $ | 14 | |||||||||||||||||||
Total Liabilities | $ | 16 | $ | 91 | $ | - | $ | (49 | ) | $ | 58 | $ | 5 | $ | 27 | $ | - | $ | (18 | ) | $ | 14 | |||||||||||||||||||
(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. There were no transfers between levels 1, 2 and 3 for the years ended December 31, 2014 and 2013. | ||||||||||||||||||||||||||||||||||||||||
(b) | Level 2 assets and liabilities include investments held in the deferred compensation plan and/or non-qualified retirement plans, interest rate swap, exchange-traded contracts where there is insufficient market liquidity to warrant inclusion in Level 1, and certain over-the-counter derivative instruments for electricity 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, 2014 and 2013, 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. | ||||||||||||||||||||||||||||||||||||||||
The employees in the Companies’ risk management group develop and maintain the Companies’ valuation policies and procedures for, and verify pricing and fair value valuation of, commodity derivatives. Under the Companies’ policies and procedures, multiple independent sources of information are obtained for forward price curves used to value commodity derivatives. Fair value and changes in fair value of commodity derivatives are reported on a monthly basis to the Companies’ risk committees, comprised of officers and employees of the Companies that oversee energy hedging at the Utilities and the competitive energy businesses. The risk management group reports to the Companies’ Vice President and Treasurer. | |||||||||||||||||||||||||||||||||||||||||
Fair Value of Level 3 at | Valuation | Unobservable Inputs | Range | ||||||||||||||||||||||||||||||||||||||
December 31, 2014 | Techniques | ||||||||||||||||||||||||||||||||||||||||
(Millions of Dollars) | |||||||||||||||||||||||||||||||||||||||||
Con Edison – Commodity | |||||||||||||||||||||||||||||||||||||||||
Electricity | $ | 1 | Discounted Cash Flow | Forward energy prices(a) | $22.59 - $119.75 per MWH | ||||||||||||||||||||||||||||||||||||
Discounted Cash Flow | Forward capacity prices(a) | $1.00 - $8.80 per kW - month | |||||||||||||||||||||||||||||||||||||||
Natural Gas | 2 | Discounted Cash Flow | Forward gas prices(a) | $(1.64) - $5.00 per Dt | |||||||||||||||||||||||||||||||||||||
Transmission Congestion Contracts / Financial Transmission Rights | 17 | Discounted Cash Flow | Discount to adjust auction prices for inter-zonal forward price curves(b) | 9.6% - 57.9% | |||||||||||||||||||||||||||||||||||||
Discount to adjust auction prices for historical monthly realized settlements(b) | 32.3% - 56.1% | ||||||||||||||||||||||||||||||||||||||||
Inter-zonal forward price curves adjusted for historical zonal losses(b) | $(2.66) - $16.49 | ||||||||||||||||||||||||||||||||||||||||
Total Con Edison—Commodity | $ | 20 | |||||||||||||||||||||||||||||||||||||||
CECONY – Commodity | |||||||||||||||||||||||||||||||||||||||||
Transmission Congestion Contracts | $ | 13 | Discounted Cash Flow | Discount to adjust auction prices for inter-zonal forward price curves(b) | 9.6% - 57.9% | ||||||||||||||||||||||||||||||||||||
Discount to adjust auction prices for historical monthly realized settlements(b) | 32.3% - 56.1% | ||||||||||||||||||||||||||||||||||||||||
(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. | ||||||||||||||||||||||||||||||||||||||||
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, 2014 and 2013 and classified as Level 3 in the fair value hierarchy: | |||||||||||||||||||||||||||||||||||||||||
Con Edison | CECONY | ||||||||||||||||||||||||||||||||||||||||
(Millions of Dollars) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||||||||||
Beginning Balance as of January 1, | $ | 9 | $ | (5 | ) | $ | 6 | $ | 10 | ||||||||||||||||||||||||||||||||
Included in Earnings | 30 | 7 | 2 | 7 | |||||||||||||||||||||||||||||||||||||
Included in Regulatory Assets and Liabilities | 7 | 18 | 7 | (1 | ) | ||||||||||||||||||||||||||||||||||||
Purchases | 22 | 17 | 16 | 13 | |||||||||||||||||||||||||||||||||||||
Settlements | (48 | ) | (28 | ) | (18 | ) | (23 | ) | |||||||||||||||||||||||||||||||||
Ending Balance as of December 31, | $ | 20 | $ | 9 | $ | 13 | $ | 6 | |||||||||||||||||||||||||||||||||
For the Utilities, realized gains and losses on Level 3 commodity derivative assets and liabilities are reported as part of purchased power, gas and fuel costs. The Utilities generally recover these costs in accordance with rate provisions approved by the applicable state public utilities regulators. See Note A. Unrealized gains and losses for commodity derivatives are generally deferred on the consolidated balance sheet in accordance with the accounting rules for regulated operations. | |||||||||||||||||||||||||||||||||||||||||
For the competitive energy businesses, realized and unrealized gains and losses on Level 3 commodity derivative assets and liabilities are reported in non-utility revenues (immaterial and $2 million loss) and purchased power costs ($27 million gain and $5 million gain) on the consolidated income statement for the years ended December 31, 2014 and 2013, respectively. The change in fair value relating to Level 3 commodity derivative assets and liabilities held at December 31, 2014 and 2013 is included in non-utility revenues (immaterial and $2 million loss) and purchased power costs ($2 million gain and $3 million gain) on the consolidated income statement for the years ended December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||||||||||||||||||
CECONY [Member] | |||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Note P – Fair Value Measurements | ||||||||||||||||||||||||||||||||||||||||
The accounting rules for fair value measurements and disclosures define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in a principal or most advantageous market. Fair value is a market-based measurement that is determined based on inputs, which refer broadly to assumptions that market participants use in pricing assets or liabilities. These inputs can be readily observable, market corroborated, or generally unobservable firm inputs. The Companies often make certain assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, and the risks inherent in the inputs to valuation techniques. The Companies use valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. | |||||||||||||||||||||||||||||||||||||||||
The accounting rules for fair value measurements and disclosures established a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value in three broad levels. The rules require that assets and liabilities be classified in their entirety based on the level of input that is significant to the fair value measurement. Assessing the significance of a particular input may require judgment considering factors specific to the asset or liability, and may affect the valuation of the asset or liability and their placement within the fair value hierarchy. The Companies classify fair value balances based on the fair value hierarchy defined by the accounting rules for fair value measurements and disclosures as follows: | |||||||||||||||||||||||||||||||||||||||||
• | Level 1 – Consists of assets or liabilities whose value is based on unadjusted quoted prices in active markets at the measurement date. An active market is one in which transactions for assets or liabilities occur with sufficient frequency and volume to provide pricing information on an ongoing basis. This category includes contracts traded on active exchange markets valued using unadjusted prices quoted directly from the exchange. | ||||||||||||||||||||||||||||||||||||||||
• | Level 2 – Consists of assets or liabilities valued using industry standard models and based on prices, other than quoted prices within Level 1, that are either directly or indirectly observable as of the measurement date. The industry standard models consider observable assumptions including time value, volatility factors, and current market and contractual prices for the underlying commodities, in addition to other economic measures. This category includes contracts traded on active exchanges or in over-the-counter markets priced with industry standard models. | ||||||||||||||||||||||||||||||||||||||||
• | Level 3 – Consists of assets or liabilities whose fair value is estimated based on internally developed models or methodologies using inputs that are generally less readily observable and supported by little, if any, market activity at the measurement date. Unobservable inputs are developed based on the best available information and subject to cost benefit constraints. This category includes contracts priced using models that are internally developed and contracts placed in illiquid markets. It also includes contracts that expire after the period of time for which quoted prices are available and internal models are used to determine a significant portion of the value. | ||||||||||||||||||||||||||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis for the years ended December 31, 2014 and 2013 are summarized below. | |||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||||||||||
(Millions of Dollars) | Level 1 | Level 2 | Level 3 | Netting | Total | Level 1 | Level 2 | Level 3 | Netting | Total | |||||||||||||||||||||||||||||||
Adjustment(e) | Adjustment(e) | ||||||||||||||||||||||||||||||||||||||||
Con Edison | |||||||||||||||||||||||||||||||||||||||||
Derivative assets: | |||||||||||||||||||||||||||||||||||||||||
Commodity(a)(b)(c) | $ | 3 | $ | 78 | $ | 28 | $ | (27 | ) | $ | 82 | $ | 3 | $ | 130 | $ | 11 | $ | (62 | ) | $ | 82 | |||||||||||||||||||
Other(a)(b)(d) | 163 | 116 | - | - | 279 | 141 | 113 | - | - | 254 | |||||||||||||||||||||||||||||||
Total assets | $ | 166 | $ | 194 | $ | 28 | $ | (27 | ) | $ | 361 | $ | 144 | $ | 243 | $ | 11 | $ | (62 | ) | $ | 336 | |||||||||||||||||||
Derivative liabilities: | |||||||||||||||||||||||||||||||||||||||||
Commodity(a)(b)(c) | $ | 18 | $ | 246 | $ | 8 | $ | (194 | ) | $ | 78 | $ | 5 | $ | 84 | $ | 2 | $ | (76 | ) | $ | 15 | |||||||||||||||||||
Interest rate contract(a)(b) | - | - | - | - | - | - | 2 | - | - | 2 | |||||||||||||||||||||||||||||||
Total liabilities | $ | 18 | $ | 246 | $ | 8 | $ | (194 | ) | $ | 78 | $ | 5 | $ | 86 | $ | 2 | $ | (76 | ) | $ | 17 | |||||||||||||||||||
CECONY | |||||||||||||||||||||||||||||||||||||||||
Derivative assets | |||||||||||||||||||||||||||||||||||||||||
Commodity(a)(b)(c) | $ | 1 | $ | 3 | $ | 13 | $ | 21 | $ | 38 | $ | 3 | $ | 13 | $ | 6 | $ | 3 | $ | 25 | |||||||||||||||||||||
Other(a)(b)(d) | 155 | 106 | - | - | 261 | 134 | 103 | - | - | 237 | |||||||||||||||||||||||||||||||
Total assets | $ | 156 | $ | 109 | $ | 13 | $ | 21 | $ | 299 | $ | 137 | $ | 116 | $ | 6 | $ | 3 | $ | 262 | |||||||||||||||||||||
Derivative liabilities: | |||||||||||||||||||||||||||||||||||||||||
Commodity(a)(b)(c) | $ | 16 | $ | 91 | $ | - | $ | (49 | ) | $ | 58 | $ | 5 | $ | 27 | $ | - | $ | (18 | ) | $ | 14 | |||||||||||||||||||
Total Liabilities | $ | 16 | $ | 91 | $ | - | $ | (49 | ) | $ | 58 | $ | 5 | $ | 27 | $ | - | $ | (18 | ) | $ | 14 | |||||||||||||||||||
(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. There were no transfers between levels 1, 2 and 3 for the years ended December 31, 2014 and 2013. | ||||||||||||||||||||||||||||||||||||||||
(b) | Level 2 assets and liabilities include investments held in the deferred compensation plan and/or non-qualified retirement plans, interest rate swap, exchange-traded contracts where there is insufficient market liquidity to warrant inclusion in Level 1, and certain over-the-counter derivative instruments for electricity 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, 2014 and 2013, 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. | ||||||||||||||||||||||||||||||||||||||||
The employees in the Companies’ risk management group develop and maintain the Companies’ valuation policies and procedures for, and verify pricing and fair value valuation of, commodity derivatives. Under the Companies’ policies and procedures, multiple independent sources of information are obtained for forward price curves used to value commodity derivatives. Fair value and changes in fair value of commodity derivatives are reported on a monthly basis to the Companies’ risk committees, comprised of officers and employees of the Companies that oversee energy hedging at the Utilities and the competitive energy businesses. The risk management group reports to the Companies’ Vice President and Treasurer. | |||||||||||||||||||||||||||||||||||||||||
Fair Value of Level 3 at | Valuation | Unobservable Inputs | Range | ||||||||||||||||||||||||||||||||||||||
December 31, 2014 | Techniques | ||||||||||||||||||||||||||||||||||||||||
(Millions of Dollars) | |||||||||||||||||||||||||||||||||||||||||
Con Edison – Commodity | |||||||||||||||||||||||||||||||||||||||||
Electricity | $ | 1 | Discounted Cash Flow | Forward energy prices(a) | $22.59 - $119.75 per MWH | ||||||||||||||||||||||||||||||||||||
Discounted Cash Flow | Forward capacity prices(a) | $1.00 - $8.80 per kW - month | |||||||||||||||||||||||||||||||||||||||
Natural Gas | 2 | Discounted Cash Flow | Forward gas prices(a) | $(1.64) - $5.00 per Dt | |||||||||||||||||||||||||||||||||||||
Transmission Congestion Contracts / Financial Transmission Rights | 17 | Discounted Cash Flow | Discount to adjust auction prices for inter-zonal forward price curves(b) | 9.6% - 57.9% | |||||||||||||||||||||||||||||||||||||
Discount to adjust auction prices for historical monthly realized settlements(b) | 32.3% - 56.1% | ||||||||||||||||||||||||||||||||||||||||
Inter-zonal forward price curves adjusted for historical zonal losses(b) | $(2.66) - $16.49 | ||||||||||||||||||||||||||||||||||||||||
Total Con Edison—Commodity | $ | 20 | |||||||||||||||||||||||||||||||||||||||
CECONY – Commodity | |||||||||||||||||||||||||||||||||||||||||
Transmission Congestion Contracts | $ | 13 | Discounted Cash Flow | Discount to adjust auction prices for inter-zonal forward price curves(b) | 9.6% - 57.9% | ||||||||||||||||||||||||||||||||||||
Discount to adjust auction prices for historical monthly realized settlements(b) | 32.3% - 56.1% | ||||||||||||||||||||||||||||||||||||||||
(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. | ||||||||||||||||||||||||||||||||||||||||
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, 2014 and 2013 and classified as Level 3 in the fair value hierarchy: | |||||||||||||||||||||||||||||||||||||||||
Con Edison | CECONY | ||||||||||||||||||||||||||||||||||||||||
(Millions of Dollars) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||||||||||
Beginning Balance as of January 1, | $ | 9 | $ | (5 | ) | $ | 6 | $ | 10 | ||||||||||||||||||||||||||||||||
Included in Earnings | 30 | 7 | 2 | 7 | |||||||||||||||||||||||||||||||||||||
Included in Regulatory Assets and Liabilities | 7 | 18 | 7 | (1 | ) | ||||||||||||||||||||||||||||||||||||
Purchases | 22 | 17 | 16 | 13 | |||||||||||||||||||||||||||||||||||||
Settlements | (48 | ) | (28 | ) | (18 | ) | (23 | ) | |||||||||||||||||||||||||||||||||
Ending Balance as of December 31, | $ | 20 | $ | 9 | $ | 13 | $ | 6 | |||||||||||||||||||||||||||||||||
For the Utilities, realized gains and losses on Level 3 commodity derivative assets and liabilities are reported as part of purchased power, gas and fuel costs. The Utilities generally recover these costs in accordance with rate provisions approved by the applicable state public utilities regulators. See Note A. Unrealized gains and losses for commodity derivatives are generally deferred on the consolidated balance sheet in accordance with the accounting rules for regulated operations. | |||||||||||||||||||||||||||||||||||||||||
For the competitive energy businesses, realized and unrealized gains and losses on Level 3 commodity derivative assets and liabilities are reported in non-utility revenues (immaterial and $2 million loss) and purchased power costs ($27 million gain and $5 million gain) on the consolidated income statement for the years ended December 31, 2014 and 2013, respectively. The change in fair value relating to Level 3 commodity derivative assets and liabilities held at December 31, 2014 and 2013 is included in non-utility revenues (immaterial and $2 million loss) and purchased power costs ($2 million gain and $3 million gain) on the consolidated income statement for the years ended December 31, 2014 and 2013, respectively. |
Variable_Interest_Entities
Variable Interest Entities | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Variable Interest Entities | Note Q – Variable Interest Entities | ||||||||||||||||||||
The 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. | |||||||||||||||||||||
Con Edison enters into arrangements including leases, partnerships and electricity purchase agreements, with various entities. As a result of these arrangements, Con Edison retains or may retain a variable interest in these entities. | |||||||||||||||||||||
CECONY | |||||||||||||||||||||
CECONY has a variable interest in a non-consolidated VIE, Astoria Energy, LLC (Astoria Energy), with which CECONY has entered into a long-term electricity purchase agreement. CECONY is not the primary beneficiary of this VIE since CECONY does not have the power to direct activities that CECONY believes most significantly impact the economic performance of Astoria Energy. In particular, CECONY has not invested in, or guaranteed the indebtedness of, Astoria Energy and CECONY does not operate or maintain Astoria Energy’s generating facilities. CECONY also has long-term electricity purchase agreements with the following three potential VIEs: Cogen Technologies Linden Venture, LP, Brooklyn Navy Yard Cogeneration Partners, LP and Indeck Energy Services of Corinth, Inc. In 2014, requests were made of these three counterparties for information necessary to determine whether the entity was a VIE and whether CECONY is the primary beneficiary; however, the information was not made available. See Note I for information on these electricity purchase agreements, the payments pursuant to which constitute CECONY’s maximum exposure to loss with respect to the potential VIEs. | |||||||||||||||||||||
Con Edison Development | |||||||||||||||||||||
Con Edison has a variable interest in Copper Mountain Solar 3 Holdings, LLC (Copper Mountain Solar 3), which is a non-consolidated entity in which Con Edison Development purchased a 50 percent membership interest in 2014. Copper Mountain Solar 3 owns a project company that is developing a 250 MW (AC) solar electric production project in Nevada. Electricity generated by the project is to be sold to the Southern California Public Power Authority pursuant to a long-term power purchase agreement. In addition, Con Edison and Con Edison Development have issued certain guarantees to third parties in connection with Copper Mountain Solar 3. See “Guarantees” in Note H. | |||||||||||||||||||||
Con Edison has a variable interest in CED California Holdings Financing I, LLC (California Solar), which is no longer a consolidated entity. Con Edison Development sold 50 percent of its membership interest in California Solar which was previously a wholly-owned subsidiary in 2014. California Solar owns project companies that operate 110 MW (AC) of solar electric production projects in California. Electricity generated by the projects is sold to Pacific Gas and Electric Company pursuant to long-term power purchase agreements. Subsequent to the sale, Con Edison Development’s remaining 50 percent interest in California Solar is accounted for under the equity method. | |||||||||||||||||||||
As a result of the sale, Con Edison Development received net proceeds of $108 million and recognized a pre-tax gain on the sale of $45 million ($26 million, net of tax). The following table summarizes the sale and resultant deconsolidation on the transaction date: | |||||||||||||||||||||
(Millions of Dollars) | |||||||||||||||||||||
Proceeds from sale, net of transaction costs of $1 | $ | 108 | |||||||||||||||||||
Non-utility property, less accumulated depreciation | (341 | ) | |||||||||||||||||||
Other assets, including working capital | (31 | ) | |||||||||||||||||||
Long-term debt, including current portion | 217 | ||||||||||||||||||||
Other liabilities | 9 | ||||||||||||||||||||
Gain on sale of solar electric production projects | (45 | ) | |||||||||||||||||||
Equity method investment upon deconsolidation | $ | (83 | ) | ||||||||||||||||||
Con Edison has a variable interest in OCI Solar San Antonio 4 LLC (Texas Solar 4), which is a consolidated entity in which Con Edison Development purchased an 80 percent membership interest in 2014 for $49 million. Texas Solar 4 owns a project company that developed a 40 MW (AC) solar electric production project in Texas. Electricity generated by the project is sold to the City of San Antonio pursuant to a long-term power purchase agreement. At December 31, 2014, Con Edison’s consolidated balance sheet includes $58 million in net assets (as detailed in the table below) and the non-controlling interest of the third party of $9 million related to Texas Solar 4. Earnings for the twelve months ended December 31, 2014 were immaterial. | |||||||||||||||||||||
(Millions of Dollars) | |||||||||||||||||||||
Restricted cash | $ | 13 | |||||||||||||||||||
Non-utility property, less accumulated depreciation | 108 | ||||||||||||||||||||
Other assets | 14 | ||||||||||||||||||||
Total assets(a) | $ | 135 | |||||||||||||||||||
Long-term debt due within one year | $ | 66 | |||||||||||||||||||
Other liabilities | 11 | ||||||||||||||||||||
Total liabilities(b) | $ | 77 | |||||||||||||||||||
(a) | The assets of Texas Solar 4 represent assets of a consolidated VIE that can be used only to settle obligations of the consolidated VIE. | ||||||||||||||||||||
(b) | The liabilities of Texas Solar 4 represent liabilities of a consolidated VIE for which creditors do not have recourse to the general credit of the primary beneficiary. | ||||||||||||||||||||
Con Edison has a variable interest in Broken Bow II Wind Holdings, LLC (Broken Bow II), which is a non-consolidated entity in which Con Edison Development purchased a 50 percent membership interest in 2014. Broken Bow II owns a project company that developed a 75 MW (AC) wind electric production project in Nebraska. Electricity generated by the project is sold to Nebraska Public Power District pursuant to a long-term power purchase agreement. | |||||||||||||||||||||
The following table summarizes the VIEs in which Con Edison Development has entered into as of December 31, 2014: | |||||||||||||||||||||
Project Name(a) | Generating | Power Purchase | Year of Initial | Location | Maximum Exposure to | ||||||||||||||||
Capacity | Agreement Term | Investment | Loss (In Millions)(c) | ||||||||||||||||||
Owned | in Years | ||||||||||||||||||||
Pilesgrove | 9 | n/a | (b) | 2010 | New Jersey | $ | 26 | ||||||||||||||
Mesquite Solar 1 | 83 | 20 | 2013 | Arizona | 111 | ||||||||||||||||
Copper Mountain Solar 2 | 75 | 25 | 2013 | Nevada | 80 | ||||||||||||||||
Copper Mountain Solar 3 | 128 | 20 | 2014 | Nevada | 175 | ||||||||||||||||
California Solar | 55 | 25 | 2012 | California | 81 | ||||||||||||||||
Texas Solar 4 | 32 | 25 | 2014 | Texas | 58 | ||||||||||||||||
Broken Bow II | 37 | 25 | 2014 | Nebraska | 57 | ||||||||||||||||
(a) | With the exception of Texas Solar 4, Con Edison’s ownership interest is 50 percent and these projects are accounted for using the equity method of accounting. Con Edison is not the primary beneficiary since the power to direct the activities that most significantly impact the economics of the entities are shared equally between Con Edison Development and third parties. Con Edison’s ownership interest in Texas Solar 4 is 80 percent and is consolidated in the financial statements. Con Edison is the primary beneficiary since the power to direct the activities that most significantly impact the economics of Texas Solar 4 is held by Con Edison Development. | ||||||||||||||||||||
(b) | Pilesgrove has 3-5 year Solar Renewable Energy Credit (SREC) hedges in place. | ||||||||||||||||||||
(c) | For investments accounted for under the equity method, maximum exposure is equal to the carrying value of the investment on the balance sheet. For consolidated investments, maximum exposure is equal to the net assets of the investment on the balance sheet. Con Edison did not provide any financial or other support during the year that was not previously contractually required. | ||||||||||||||||||||
CECONY [Member] | |||||||||||||||||||||
Variable Interest Entities | Note Q – Variable Interest Entities | ||||||||||||||||||||
The 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. | |||||||||||||||||||||
Con Edison enters into arrangements including leases, partnerships and electricity purchase agreements, with various entities. As a result of these arrangements, Con Edison retains or may retain a variable interest in these entities. | |||||||||||||||||||||
CECONY | |||||||||||||||||||||
CECONY has a variable interest in a non-consolidated VIE, Astoria Energy, LLC (Astoria Energy), with which CECONY has entered into a long-term electricity purchase agreement. CECONY is not the primary beneficiary of this VIE since CECONY does not have the power to direct activities that CECONY believes most significantly impact the economic performance of Astoria Energy. In particular, CECONY has not invested in, or guaranteed the indebtedness of, Astoria Energy and CECONY does not operate or maintain Astoria Energy’s generating facilities. CECONY also has long-term electricity purchase agreements with the following three potential VIEs: Cogen Technologies Linden Venture, LP, Brooklyn Navy Yard Cogeneration Partners, LP and Indeck Energy Services of Corinth, Inc. In 2014, requests were made of these three counterparties for information necessary to determine whether the entity was a VIE and whether CECONY is the primary beneficiary; however, the information was not made available. See Note I for information on these electricity purchase agreements, the payments pursuant to which constitute CECONY’s maximum exposure to loss with respect to the potential VIEs. | |||||||||||||||||||||
Con Edison Development | |||||||||||||||||||||
Con Edison has a variable interest in Copper Mountain Solar 3 Holdings, LLC (Copper Mountain Solar 3), which is a non-consolidated entity in which Con Edison Development purchased a 50 percent membership interest in 2014. Copper Mountain Solar 3 owns a project company that is developing a 250 MW (AC) solar electric production project in Nevada. Electricity generated by the project is to be sold to the Southern California Public Power Authority pursuant to a long-term power purchase agreement. In addition, Con Edison and Con Edison Development have issued certain guarantees to third parties in connection with Copper Mountain Solar 3. See “Guarantees” in Note H. | |||||||||||||||||||||
Con Edison has a variable interest in CED California Holdings Financing I, LLC (California Solar), which is no longer a consolidated entity. Con Edison Development sold 50 percent of its membership interest in California Solar which was previously a wholly-owned subsidiary in 2014. California Solar owns project companies that operate 110 MW (AC) of solar electric production projects in California. Electricity generated by the projects is sold to Pacific Gas and Electric Company pursuant to long-term power purchase agreements. Subsequent to the sale, Con Edison Development’s remaining 50 percent interest in California Solar is accounted for under the equity method. | |||||||||||||||||||||
As a result of the sale, Con Edison Development received net proceeds of $108 million and recognized a pre-tax gain on the sale of $45 million ($26 million, net of tax). The following table summarizes the sale and resultant deconsolidation on the transaction date: | |||||||||||||||||||||
(Millions of Dollars) | |||||||||||||||||||||
Proceeds from sale, net of transaction costs of $1 | $ | 108 | |||||||||||||||||||
Non-utility property, less accumulated depreciation | (341 | ) | |||||||||||||||||||
Other assets, including working capital | (31 | ) | |||||||||||||||||||
Long-term debt, including current portion | 217 | ||||||||||||||||||||
Other liabilities | 9 | ||||||||||||||||||||
Gain on sale of solar electric production projects | (45 | ) | |||||||||||||||||||
Equity method investment upon deconsolidation | $ | (83 | ) | ||||||||||||||||||
Con Edison has a variable interest in OCI Solar San Antonio 4 LLC (Texas Solar 4), which is a consolidated entity in which Con Edison Development purchased an 80 percent membership interest in 2014 for $49 million. Texas Solar 4 owns a project company that developed a 40 MW (AC) solar electric production project in Texas. Electricity generated by the project is sold to the City of San Antonio pursuant to a long-term power purchase agreement. At December 31, 2014, Con Edison’s consolidated balance sheet includes $58 million in net assets (as detailed in the table below) and the non-controlling interest of the third party of $9 million related to Texas Solar 4. Earnings for the twelve months ended December 31, 2014 were immaterial. | |||||||||||||||||||||
(Millions of Dollars) | |||||||||||||||||||||
Restricted cash | $ | 13 | |||||||||||||||||||
Non-utility property, less accumulated depreciation | 108 | ||||||||||||||||||||
Other assets | 14 | ||||||||||||||||||||
Total assets(a) | $ | 135 | |||||||||||||||||||
Long-term debt due within one year | $ | 66 | |||||||||||||||||||
Other liabilities | 11 | ||||||||||||||||||||
Total liabilities(b) | $ | 77 | |||||||||||||||||||
(a) | The assets of Texas Solar 4 represent assets of a consolidated VIE that can be used only to settle obligations of the consolidated VIE. | ||||||||||||||||||||
(b) | The liabilities of Texas Solar 4 represent liabilities of a consolidated VIE for which creditors do not have recourse to the general credit of the primary beneficiary. | ||||||||||||||||||||
Con Edison has a variable interest in Broken Bow II Wind Holdings, LLC (Broken Bow II), which is a non-consolidated entity in which Con Edison Development purchased a 50 percent membership interest in 2014. Broken Bow II owns a project company that developed a 75 MW (AC) wind electric production project in Nebraska. Electricity generated by the project is sold to Nebraska Public Power District pursuant to a long-term power purchase agreement. | |||||||||||||||||||||
The following table summarizes the VIEs in which Con Edison Development has entered into as of December 31, 2014: | |||||||||||||||||||||
Project Name(a) | Generating | Power Purchase | Year of Initial | Location | Maximum Exposure to | ||||||||||||||||
Capacity | Agreement Term | Investment | Loss (In Millions)(c) | ||||||||||||||||||
Owned | in Years | ||||||||||||||||||||
Pilesgrove | 9 | n/a | (b) | 2010 | New Jersey | $ | 26 | ||||||||||||||
Mesquite Solar 1 | 83 | 20 | 2013 | Arizona | 111 | ||||||||||||||||
Copper Mountain Solar 2 | 75 | 25 | 2013 | Nevada | 80 | ||||||||||||||||
Copper Mountain Solar 3 | 128 | 20 | 2014 | Nevada | 175 | ||||||||||||||||
California Solar | 55 | 25 | 2012 | California | 81 | ||||||||||||||||
Texas Solar 4 | 32 | 25 | 2014 | Texas | 58 | ||||||||||||||||
Broken Bow II | 37 | 25 | 2014 | Nebraska | 57 | ||||||||||||||||
(a) | With the exception of Texas Solar 4, Con Edison’s ownership interest is 50 percent and these projects are accounted for using the equity method of accounting. Con Edison is not the primary beneficiary since the power to direct the activities that most significantly impact the economics of the entities are shared equally between Con Edison Development and third parties. Con Edison’s ownership interest in Texas Solar 4 is 80 percent and is consolidated in the financial statements. Con Edison is the primary beneficiary since the power to direct the activities that most significantly impact the economics of Texas Solar 4 is held by Con Edison Development. | ||||||||||||||||||||
(b) | Pilesgrove has 3-5 year Solar Renewable Energy Credit (SREC) hedges in place. | ||||||||||||||||||||
(c) | For investments accounted for under the equity method, maximum exposure is equal to the carrying value of the investment on the balance sheet. For consolidated investments, maximum exposure is equal to the net assets of the investment on the balance sheet. Con Edison did not provide any financial or other support during the year that was not previously contractually required. |
Asset_Retirement_Obligations
Asset Retirement Obligations | 12 Months Ended |
Dec. 31, 2014 | |
Asset Retirement Obligations | Note R – 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 pipelines abandoned in place. | |
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 its competitive 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 its competitive 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, 2014, the liabilities for asset retirement obligations of Con Edison and CECONY were $188 million and $185 million, respectively, as compared to $143 million for both Con Edison and CECONY at December 31, 2013. The increase in liabilities at December 31, 2014 was due to changes in estimated cash flows of $60 million and $57 million for Con Edison and CECONY, respectively, and accretion expense of $6 million for both Con Edison and CECONY. The increases were offset in part by liabilities settled of $21 million for both Con Edison and CECONY. Con Edison and CECONY also recorded reductions of $16 million and $17 million during the years ended December 31, 2014 and 2013, respectively, to the regulatory liability associated with cost of removal to reflect depreciation and interest expense. | |
CECONY [Member] | |
Asset Retirement Obligations | Note R – 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 pipelines abandoned in place. | |
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 its competitive 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 its competitive 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, 2014, the liabilities for asset retirement obligations of Con Edison and CECONY were $188 million and $185 million, respectively, as compared to $143 million for both Con Edison and CECONY at December 31, 2013. The increase in liabilities at December 31, 2014 was due to changes in estimated cash flows of $60 million and $57 million for Con Edison and CECONY, respectively, and accretion expense of $6 million for both Con Edison and CECONY. The increases were offset in part by liabilities settled of $21 million for both Con Edison and CECONY. Con Edison and CECONY also recorded reductions of $16 million and $17 million during the years ended December 31, 2014 and 2013, respectively, to the regulatory liability associated with cost of removal to reflect depreciation and interest expense. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Related Party Transactions | Note S – Related Party Transactions | ||||||||||||
The Utilities and Con Edison’s competitive businesses provide administrative and other services to each other pursuant to cost allocation procedures approved by the NYSPSC. The costs of administrative and other services provided by CECONY to, and received by it from, Con Edison and its other subsidiaries for the years ended December 31, 2014, 2013 and 2012 were as follows: | |||||||||||||
CECONY | |||||||||||||
(Millions of Dollars) | 2014 | 2013 | 2012 | ||||||||||
Cost of services provided | $ | 90 | $ | 84 | $ | 83 | |||||||
Cost of services received | $ | 57 | $ | 52 | $ | 49 | |||||||
In addition, CECONY and O&R have joint gas supply arrangements, in connection with which CECONY sold to O&R $80 million, $72 million and $54 million of natural gas for the years ended December 31, 2014, 2013 and 2012, respectively. These amounts are net of the effect of related hedging transactions. | |||||||||||||
FERC has authorized CECONY through 2015 to lend funds to O&R from time to time, for periods of not more than 12 months, in amounts not to exceed $250 million outstanding at any time, at prevailing market rates. There were no outstanding loans to O&R at December 31, 2014 and 2013. | |||||||||||||
CECONY [Member] | |||||||||||||
Related Party Transactions | Note S – Related Party Transactions | ||||||||||||
The Utilities and Con Edison’s competitive businesses provide administrative and other services to each other pursuant to cost allocation procedures approved by the NYSPSC. The costs of administrative and other services provided by CECONY to, and received by it from, Con Edison and its other subsidiaries for the years ended December 31, 2014, 2013 and 2012 were as follows: | |||||||||||||
CECONY | |||||||||||||
(Millions of Dollars) | 2014 | 2013 | 2012 | ||||||||||
Cost of services provided | $ | 90 | $ | 84 | $ | 83 | |||||||
Cost of services received | $ | 57 | $ | 52 | $ | 49 | |||||||
In addition, CECONY and O&R have joint gas supply arrangements, in connection with which CECONY sold to O&R $80 million, $72 million and $54 million of natural gas for the years ended December 31, 2014, 2013 and 2012, respectively. These amounts are net of the effect of related hedging transactions. | |||||||||||||
FERC has authorized CECONY through 2015 to lend funds to O&R from time to time, for periods of not more than 12 months, in amounts not to exceed $250 million outstanding at any time, at prevailing market rates. There were no outstanding loans to O&R at December 31, 2014 and 2013. |
New_Financial_Accounting_Stand
New Financial Accounting Standards | 12 Months Ended |
Dec. 31, 2014 | |
New Financial Accounting Standards | Note T – New Financial Accounting Standards |
In April 2014, the Financial Accounting Standards Board (FASB) issued amendments on reporting discontinued operations through Accounting Standards Update (ASU) No. 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” The amendments revise the definition of a discontinued operation as a disposal of a component of an entity or a group of components of an entity, or a business or nonprofit activity that represents a strategic shift that has or will have a major effect on an entity’s operations and financial results. The amendments also require additional disclosures for discontinued operations and individually significant disposals that do not qualify for discontinued operations presentation in the financial statements. For public entities, the amendments are effective prospectively for reporting periods beginning on or after December 15, 2014. The application of this guidance does not have a material impact on the Companies’ financial position, results of operations and liquidity. | |
In May 2014, the FASB and the International Accounting Standards Board (IASB) jointly issued a revenue recognition standard that will supersede the revenue recognition | |
requirements within Accounting Standards Codification (ASC) Topic 605, “Revenue Recognition,” and most industry-specific guidance under the Codification through ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” The purpose of the new guidance is to create a consistent framework for revenue recognition. The guidance clarifies how to measure and recognize revenue arising from customer contracts to depict the transfer of goods or services in an amount that reflects the consideration the entity expects to receive. The new guidance must be adopted using either a full retrospective approach or a modified retrospective approach. For public entities reporting under GAAP, the new guidance is effective for periods beginning after December 15, 2016. The Companies are in the process of evaluating the application and impact of the new guidance on the Companies’ financial position, results of operations and liquidity. | |
In June 2014, the FASB issued ASU No. 2014-12, “Compensation—Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (a consensus of the FASB Emerging Issues Task Force).” The amendments clarify the accounting treatment regarding performance targets. Under the new guidance, a performance target that affects vesting and that could be achieved after the requisite service period is required to be treated as a performance condition and should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized only when it becomes probable that the performance target will be achieved. The amendments are effective for periods beginning after December 15, 2015. The application of this guidance is not expected to have a material impact on the Companies’ financial position, results of operations and liquidity. | |
In August 2014, the FASB issued amendments on reporting about an entity’s ability to continue as a going concern in ASU No. 2014-15, “Presentation of Financial Statements – Going Concern (Subtopic 205 - 40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” The amendments provide guidance about management’s responsibility to evaluate whether there is substantial doubt surrounding an entity’s ability to continue as a going concern. If management concludes that substantial doubt exists, the amendments also require additional disclosures relating to management’s evaluation and conclusion. The amendments are effective for the annual reporting period ending after December 15, 2016 and interim periods thereafter. The application of this guidance is not expected to have a material impact on the Companies’ financial position, results of operations and liquidity. | |
In November 2014, the FASB issued amendments on pushdown accounting for subsidiaries and acquired entities in ASU No. 2014-17, “Business Combinations (Topic 805): Pushdown Accounting.” The amendments provide guidance as to whether and at what threshold an acquired entity can apply pushdown accounting in its separate financial statements. The amendments are effective as of the date of issuance. The application of this guidance does not have a material impact on the Companies’ financial position, results of operations and liquidity. | |
CECONY [Member] | |
New Financial Accounting Standards | Note T – New Financial Accounting Standards |
In April 2014, the Financial Accounting Standards Board (FASB) issued amendments on reporting discontinued operations through Accounting Standards Update (ASU) No. 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” The amendments revise the definition of a discontinued operation as a disposal of a component of an entity or a group of components of an entity, or a business or nonprofit activity that represents a strategic shift that has or will have a major effect on an entity’s operations and financial results. The amendments also require additional disclosures for discontinued operations and individually significant disposals that do not qualify for discontinued operations presentation in the financial statements. For public entities, the amendments are effective prospectively for reporting periods beginning on or after December 15, 2014. The application of this guidance does not have a material impact on the Companies’ financial position, results of operations and liquidity. | |
In May 2014, the FASB and the International Accounting Standards Board (IASB) jointly issued a revenue recognition standard that will supersede the revenue recognition | |
requirements within Accounting Standards Codification (ASC) Topic 605, “Revenue Recognition,” and most industry-specific guidance under the Codification through ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” The purpose of the new guidance is to create a consistent framework for revenue recognition. The guidance clarifies how to measure and recognize revenue arising from customer contracts to depict the transfer of goods or services in an amount that reflects the consideration the entity expects to receive. The new guidance must be adopted using either a full retrospective approach or a modified retrospective approach. For public entities reporting under GAAP, the new guidance is effective for periods beginning after December 15, 2016. The Companies are in the process of evaluating the application and impact of the new guidance on the Companies’ financial position, results of operations and liquidity. | |
In June 2014, the FASB issued ASU No. 2014-12, “Compensation—Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (a consensus of the FASB Emerging Issues Task Force).” The amendments clarify the accounting treatment regarding performance targets. Under the new guidance, a performance target that affects vesting and that could be achieved after the requisite service period is required to be treated as a performance condition and should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized only when it becomes probable that the performance target will be achieved. The amendments are effective for periods beginning after December 15, 2015. The application of this guidance is not expected to have a material impact on the Companies’ financial position, results of operations and liquidity. | |
In August 2014, the FASB issued amendments on reporting about an entity’s ability to continue as a going concern in ASU No. 2014-15, “Presentation of Financial Statements – Going Concern (Subtopic 205 - 40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” The amendments provide guidance about management’s responsibility to evaluate whether there is substantial doubt surrounding an entity’s ability to continue as a going concern. If management concludes that substantial doubt exists, the amendments also require additional disclosures relating to management’s evaluation and conclusion. The amendments are effective for the annual reporting period ending after December 15, 2016 and interim periods thereafter. The application of this guidance is not expected to have a material impact on the Companies’ financial position, results of operations and liquidity. | |
In November 2014, the FASB issued amendments on pushdown accounting for subsidiaries and acquired entities in ASU No. 2014-17, “Business Combinations (Topic 805): Pushdown Accounting.” The amendments provide guidance as to whether and at what threshold an acquired entity can apply pushdown accounting in its separate financial statements. The amendments are effective as of the date of issuance. The application of this guidance does not have a material impact on the Companies’ financial position, results of operations and liquidity. |
Schedule_I_Condensed_Financial
Schedule I - Condensed Financial Information | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||
Schedule I - Condensed Financial Information | Schedule I | ||||||||||||
Condensed Financial Information of Consolidated Edison, Inc.* | |||||||||||||
Condensed Statement of Income and Comprehensive Income | |||||||||||||
(Parent Company Only) | |||||||||||||
For the Years Ended December 31, | |||||||||||||
(Millions of Dollars, except per share amounts) | 2014 | 2013 | 2012 | ||||||||||
Equity in earnings of subsidiaries | $ | 1,101 | $ | 1,062 | $ | 1,154 | |||||||
Other income (deductions), net of taxes | 19 | 29 | 12 | ||||||||||
Interest expense | (28 | ) | (29 | ) | (28 | ) | |||||||
Net Income for Common Stock | $ | 1,092 | $ | 1,062 | $ | 1,138 | |||||||
Comprehensive Income for Common Stock | $ | 1,072 | $ | 1,090 | $ | 1,143 | |||||||
Net Income Per Common Share – Basic | $ | 3.73 | $ | 3.62 | $ | 3.88 | |||||||
Net Income Per Common Share – Diluted | $ | 3.71 | $ | 3.61 | $ | 3.86 | |||||||
Dividends Declared Per Share Of Common Stock | $ | 2.52 | $ | 2.46 | $ | 2.42 | |||||||
Average Number Of Shares Outstanding—Basic (In Millions) | 292.9 | 292.9 | 292.9 | ||||||||||
Average Number Of Shares Outstanding—Diluted (In Millions) | 294 | 294.4 | 294.5 | ||||||||||
* | These financial statements, in which Con Edison’s subsidiaries have been included using the equity method, should be read together with its consolidated financial statements and the notes thereto appearing above. | ||||||||||||
Condensed Financial Information of Consolidated Edison, Inc.* | |||||||||||||
Condensed Statement of Cash Flows | |||||||||||||
(Parent Company Only) | |||||||||||||
For the Years Ended December 31, | |||||||||||||
(Millions of Dollars) | 2014 | 2013 | 2012 | ||||||||||
Net Income | $ | 1,092 | $ | 1,062 | $ | 1,138 | |||||||
Equity in earnings of subsidiaries | (1,101 | ) | (1,062 | ) | (1,154 | ) | |||||||
Dividends received from: | |||||||||||||
CECONY | 712 | 728 | 682 | ||||||||||
O&R | 40 | 38 | 34 | ||||||||||
Competitive energy businesses | 8 | 12 | 11 | ||||||||||
Change in Assets: | |||||||||||||
Special deposits | 314 | (264 | ) | – | |||||||||
Income taxes receivable | (224 | ) | – | – | |||||||||
Other – net | (199 | ) | 166 | (208 | ) | ||||||||
Net Cash Flows from Operating Activities | 642 | 680 | 503 | ||||||||||
Investing Activities | |||||||||||||
Contributions to subsidiaries | (1 | ) | – | (100 | ) | ||||||||
Net Cash Flows Used in Investing Activities | (1 | ) | – | (100 | ) | ||||||||
Financing Activities | |||||||||||||
Net proceeds of short-term debt | 101 | 58 | 115 | ||||||||||
Retirement of long-term debt | (2 | ) | (1 | ) | (1 | ) | |||||||
Issuance of common shares for stock plans, net of repurchases | (10 | ) | (8 | ) | (9 | ) | |||||||
Common stock dividends | (739 | ) | (721 | ) | (709 | ) | |||||||
Net Cash Flows Used in Financing Activities | (650 | ) | (672 | ) | (604 | ) | |||||||
Net Change for the Period | (9 | ) | 8 | (201 | ) | ||||||||
Balance at Beginning of Period | 12 | 4 | 205 | ||||||||||
Balance at End of Period | $ | 3 | $ | 12 | $ | 4 | |||||||
* | These financial statements, in which Con Edison’s subsidiaries have been included using the equity method, should be read together with its consolidated financial statements and the notes thereto appearing above. | ||||||||||||
Condensed Financial Information of Consolidated Edison, Inc.* | |||||||||||||
Condensed Balance Sheet | |||||||||||||
(Parent Company Only) | |||||||||||||
At December 31, | |||||||||||||
(Millions of Dollars) | 2014 | 2013 | |||||||||||
Assets | |||||||||||||
Current Assets | |||||||||||||
Cash and temporary cash investments | $ | 3 | $ | 12 | |||||||||
Special deposits | 1 | 315 | |||||||||||
Accounts receivable – other | – | 185 | |||||||||||
Income taxes receivable | 224 | – | |||||||||||
Accounts receivable from affiliated companies | 381 | 950 | |||||||||||
Prepayments | 5 | 2 | |||||||||||
Other current assets | 4 | – | |||||||||||
Total Current Assets | 618 | 1,464 | |||||||||||
Investments in subsidiaries | 12,277 | 11,954 | |||||||||||
Goodwill | 406 | 406 | |||||||||||
Deferred income tax | 18 | 14 | |||||||||||
Other noncurrent assets | 11 | 4 | |||||||||||
Total Assets | $ | 13,330 | $ | 13,842 | |||||||||
Liabilities and Shareholders’ Equity | |||||||||||||
Current Liabilities | |||||||||||||
Long-term debt due within one year | $ | 2 | $ | 2 | |||||||||
Notes payable | 274 | 173 | |||||||||||
Accounts payable to affiliated companies | 147 | 148 | |||||||||||
Accrued taxes | 13 | 426 | |||||||||||
Other current liabilities | 10 | 538 | |||||||||||
Total Current Liabilities | 446 | 1,287 | |||||||||||
Total Liabilities | 446 | 1,287 | |||||||||||
Long-term debt | 308 | 310 | |||||||||||
Shareholders’ Equity | |||||||||||||
Common stock, including additional paid-in capital | 5,023 | 5,027 | |||||||||||
Retained earnings | 7,553 | 7,218 | |||||||||||
Total Shareholders’ Equity | 12,576 | 12,245 | |||||||||||
Total Liabilities and Shareholders’ Equity | $ | 13,330 | $ | 13,842 | |||||||||
* | These financial statements, in which Con Edison’s subsidiaries have been included using the equity method, should be read together with its consolidated financial statements and the notes thereto appearing above. |
Schedule_II_Valuation_and_Qual
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||
Schedule II - Valuation and Qualifying Accounts | Schedule II | ||||||||||||||||||||||||||
Valuation and Qualifying Accounts | |||||||||||||||||||||||||||
For the Years Ended December 31, 2014, 2013 and 2012 | |||||||||||||||||||||||||||
COLUMN C | |||||||||||||||||||||||||||
Additions | |||||||||||||||||||||||||||
Company (Millions of Dollars) | COLUMN A | COLUMN B | -1 | -2 | COLUMN D | COLUMN E | |||||||||||||||||||||
Description | Balance at | Charged To | Charged | Deductions(b) | Balance | ||||||||||||||||||||||
Beginning | Costs And | To Other | At End of | ||||||||||||||||||||||||
of Period | Expenses | Accounts | Period | ||||||||||||||||||||||||
Con Edison | Allowance for uncollectible | ||||||||||||||||||||||||||
accounts(a): | |||||||||||||||||||||||||||
2014 | $ | 103 | $ | 98 | $ | - | $ | 95 | $ | 106 | |||||||||||||||||
2013 | $ | 105 | $ | 86 | - | $ | 88 | $ | 103 | ||||||||||||||||||
2012 | $ | 97 | $ | 96 | - | $ | 88 | $ | 105 | ||||||||||||||||||
CECONY | Allowance for uncollectible | ||||||||||||||||||||||||||
accounts(a): | |||||||||||||||||||||||||||
2014 | $ | 95 | $ | 91 | $ | - | $ | 88 | $ | 98 | |||||||||||||||||
2013 | $ | 96 | $ | 82 | - | $ | 83 | $ | 95 | ||||||||||||||||||
2012 | $ | 88 | $ | 90 | - | $ | 82 | $ | 96 | ||||||||||||||||||
(a) | This is a valuation account deducted in the balance sheet from the assets (Accounts receivable-customers) to which they apply. | ||||||||||||||||||||||||||
(b) | Accounts written off less cash collections, miscellaneous adjustments and amounts reinstated as receivables previously written off. | ||||||||||||||||||||||||||
CECONY [Member] | |||||||||||||||||||||||||||
Schedule II - Valuation and Qualifying Accounts | Schedule II | ||||||||||||||||||||||||||
Valuation and Qualifying Accounts | |||||||||||||||||||||||||||
For the Years Ended December 31, 2014, 2013 and 2012 | |||||||||||||||||||||||||||
COLUMN C | |||||||||||||||||||||||||||
Additions | |||||||||||||||||||||||||||
Company (Millions of Dollars) | COLUMN A | COLUMN B | -1 | -2 | COLUMN D | COLUMN E | |||||||||||||||||||||
Description | Balance at | Charged To | Charged | Deductions(b) | Balance | ||||||||||||||||||||||
Beginning | Costs And | To Other | At End of | ||||||||||||||||||||||||
of Period | Expenses | Accounts | Period | ||||||||||||||||||||||||
Con Edison | Allowance for uncollectible | ||||||||||||||||||||||||||
accounts(a): | |||||||||||||||||||||||||||
2014 | $ | 103 | $ | 98 | $ | - | $ | 95 | $ | 106 | |||||||||||||||||
2013 | $ | 105 | $ | 86 | - | $ | 88 | $ | 103 | ||||||||||||||||||
2012 | $ | 97 | $ | 96 | - | $ | 88 | $ | 105 | ||||||||||||||||||
CECONY | Allowance for uncollectible | ||||||||||||||||||||||||||
accounts(a): | |||||||||||||||||||||||||||
2014 | $ | 95 | $ | 91 | $ | - | $ | 88 | $ | 98 | |||||||||||||||||
2013 | $ | 96 | $ | 82 | - | $ | 83 | $ | 95 | ||||||||||||||||||
2012 | $ | 88 | $ | 90 | - | $ | 82 | $ | 96 | ||||||||||||||||||
(a) | This is a valuation account deducted in the balance sheet from the assets (Accounts receivable-customers) to which they apply. | ||||||||||||||||||||||||||
(b) | Accounts written off less cash collections, miscellaneous adjustments and amounts reinstated as receivables previously written off. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||
Principles of Consolidation | Principles of Consolidation | ||||||||||||||||
The Companies’ consolidated financial statements include the accounts of their respective majority-owned subsidiaries, and variable interest entities (see Note Q), as required. All intercompany balances and transactions have been eliminated. | |||||||||||||||||
Accounting Policies | Accounting Policies | ||||||||||||||||
The accounting policies of Con Edison and its subsidiaries conform to generally accepted accounting principles in the United States of America (GAAP). For the Utilities, these accounting principles include the accounting rules for regulated operations and the accounting requirements of the Federal Energy Regulatory Commission (FERC) and the state regulators having jurisdiction. | |||||||||||||||||
The accounting rules for regulated operations specify the economic effects that result from the causal relationship of costs and revenues in the rate-regulated environment and how these effects are to be accounted for by a regulated enterprise. Revenues intended to cover some costs may be recorded either before or after the costs are incurred. If regulation provides assurance that incurred costs will be recovered in the future, these costs would be recorded as deferred charges or “regulatory assets” under the accounting rules for regulated operations. If revenues are recorded for costs that are expected to be incurred in the future, these revenues would be recorded as deferred credits or “regulatory liabilities” under the accounting rules for regulated operations. | |||||||||||||||||
The Utilities’ principal regulatory assets and liabilities are detailed in Note B. The Utilities are receiving or being credited with a return on all of their regulatory assets for which a cash outflow has been made, and are paying or being charged with a return on all of their regulatory liabilities for which a cash inflow has been received. The Utilities’ regulatory assets and liabilities will be recovered from customers, or applied for customer benefit, in accordance with rate provisions approved by the applicable state regulators. | |||||||||||||||||
Other significant accounting policies of the Companies are referenced below in this Note A and in the notes that follow. | |||||||||||||||||
Plant and Depreciation | Plant and Depreciation | ||||||||||||||||
Utility Plant | |||||||||||||||||
Utility plant is stated at original cost. The cost of repairs and maintenance is charged to expense and the cost of betterments is capitalized. The capitalized cost of additions to utility plant includes indirect costs such as engineering, supervision, payroll taxes, pensions, other benefits and an allowance for funds used during construction (AFUDC). The original cost of property is charged to expense over the estimated useful lives of the assets. Upon retirement, the original cost of property is charged to accumulated depreciation. See Note R. | |||||||||||||||||
Rates used for AFUDC include the cost of borrowed funds and a reasonable rate of return on the Utilities’ own funds when so used, determined in accordance with regulations of the FERC or the state public utility regulatory authority having jurisdiction. The rate is compounded semiannually, and the amounts applicable to borrowed funds are treated as a reduction of interest charges, while the amounts applicable to the Utilities’ own funds are credited to other income (deductions). The AFUDC rates for CECONY were 1.6 percent, 4.0 percent and 6.5 percent for 2014, 2013 and 2012, respectively. The AFUDC rates for O&R were 2.6 percent, 5.7 percent and 7.0 percent for 2014, 2013 and 2012, respectively. | |||||||||||||||||
The Utilities generally compute annual charges for depreciation using the straight-line method for financial statement purposes, with rates based on average service lives and net salvage factors. The average depreciation rates for CECONY were 3.1 percent, 3.2 percent and 3.1 percent for 2014, 2013 and 2012, respectively. The average depreciation rates for O&R were 2.9 percent, 2.8 percent and 2.9 percent for 2014, 2013 and 2012, respectively. | |||||||||||||||||
The estimated lives for utility plant for CECONY range from 5 to 85 years for electric and gas, 5 to 80 years for steam and 5 to 55 years for general plant. For O&R, the estimated lives for utility plant range from 5 to 75 years for electric and gas and 5 to 50 years for general plant. | |||||||||||||||||
At December 31, 2014 and 2013, the capitalized cost of the Companies’ utility plant, net of accumulated depreciation, was as follows: | |||||||||||||||||
Con Edison | CECONY | ||||||||||||||||
(Millions of Dollars) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Electric | |||||||||||||||||
Generation | $ | 451 | $ | 452 | $ | 451 | $ | 452 | |||||||||
Transmission | 2,956 | 2,776 | 2,744 | 2,597 | |||||||||||||
Distribution | 16,361 | 15,277 | 15,531 | 14,496 | |||||||||||||
Gas* | 5,006 | 4,469 | 4,530 | 4,013 | |||||||||||||
Steam | 1,795 | 1,790 | 1,795 | 1,790 | |||||||||||||
General | 1,650 | 1,565 | 1,498 | 1,433 | |||||||||||||
Held for future use | 76 | 73 | 65 | 62 | |||||||||||||
Construction work in progress | 1,031 | 1,393 | 971 | 1,303 | |||||||||||||
Net Utility Plant | $ | 29,326 | $ | 27,795 | $ | 27,585 | $ | 26,146 | |||||||||
* | Primarily distribution. | ||||||||||||||||
Under the Utilities’ rate plans, the aggregate annual depreciation allowance in effect at December 31, 2014 was $1,048 million, including $993 million under CECONY’s electric, gas and steam rate plans that have been approved by the New York State Public Service Commission (NYSPSC). | |||||||||||||||||
Non-Utility Plant | |||||||||||||||||
Non-utility plant is stated at original cost. For Con Edison, non-utility plant consists primarily of the competitive energy businesses’ renewable electric production and gas storage. For the Utilities, non-utility plant consists of land and conduit for telecommunication use. Depreciation on these assets is computed using the straight-line method for financial statement purposes over their estimated useful lives, which range from 3 to 30 years. | |||||||||||||||||
Goodwill | Goodwill | ||||||||||||||||
Con Edison tests goodwill for impairment at least annually. Goodwill is tested for impairment using a two-step approach. The first step of the goodwill impairment test compares the estimated fair value of a reporting unit with its carrying value, including goodwill. If the estimated fair value of a reporting unit exceeds its carrying value, goodwill of the reporting unit is considered not impaired. If the carrying value exceeds the estimated fair value of the reporting unit, the second step is performed to measure the amount of impairment loss, if any. The second step requires a calculation of the implied fair value of goodwill. See Note K. | |||||||||||||||||
Impairments | Impairments | ||||||||||||||||
Con Edison evaluates the impairment of long-lived assets, based on projections of undiscounted future cash flows, whenever events or changes in circumstances indicate that the carrying amounts of such assets may not be recoverable. In the event an evaluation indicates that such cash flows cannot be expected to be sufficient to fully recover the assets, the assets are written down to their estimated fair value. No impairment charges were recognized in 2014, 2013 or 2012. | |||||||||||||||||
Revenues | Revenues | ||||||||||||||||
The Utilities and Con Edison Solutions recognize revenues for energy service on a monthly billing cycle basis. The Utilities defer over a 12-month period net interruptible gas revenues, other than those authorized by the NYSPSC to be retained by the Utilities, for refund to firm gas sales and transportation customers. The Utilities and Con Edison Solutions accrue revenues at the end of each month for estimated energy service not yet billed to customers. | |||||||||||||||||
CECONY’s electric and gas rate plans and O&R’s New York electric and gas rate plans each contain a revenue decoupling mechanism under which the company’s actual energy delivery revenues are compared with the authorized delivery revenues and the difference accrued, with interest, for refund to, or recovery from, customers, as applicable. See “Rate Plans” in Note B. | |||||||||||||||||
The NYSPSC requires utilities to record gross receipts tax revenues and expenses on a gross income statement presentation basis (i.e., included in both revenue and expense). The recovery of these taxes is generally provided for in the revenue requirement within each of the respective NYSPSC approved rate plans. Total excise taxes (inclusive of gross receipts taxes) recorded in operating revenues were as follows: | |||||||||||||||||
For the Years Ended December 31, | |||||||||||||||||
(Millions of Dollars) | 2014 | 2013 | 2012 | ||||||||||||||
Con Edison | $ | 365 | $ | 354 | $ | 334 | |||||||||||
CECONY | 343 | 329 | 306 | ||||||||||||||
Public Utility Information | Recoverable Energy Costs | ||||||||||||||||
The Utilities generally recover all of their prudently incurred fuel, purchased power and gas costs, including hedging gains and losses, in accordance with rate provisions approved by the applicable state public utility regulators. If the actual energy supply costs for a given month are more or less than the amounts billed to customers for that month, the difference in most cases is recoverable from or refundable to customers. Differences between actual and billed electric and steam supply costs and costs of its electric demand management programs are generally deferred for charge or refund to customers during the next billing cycle (normally within one or two months). For the Utilities’ gas costs, differences between actual and billed gas costs during the 12-month period ending each August are charged or refunded to customers during a subsequent 12-month period. | |||||||||||||||||
New York Independent System Operator (NYISO) | |||||||||||||||||
The Utilities purchase electricity through the wholesale electricity market administered by the NYISO. The difference between purchased power and related costs initially billed to the Utilities by the NYISO and the actual cost of power subsequently calculated by the NYISO is refunded by the NYISO to the Utilities, or paid to the NYISO by the Utilities. The reconciliation payments or receipts are recoverable from or refundable to the Utilities’ customers. | |||||||||||||||||
Certain other payments to or receipts from the NYISO are also subject to reconciliation, with shortfalls or amounts in excess of specified rate allowances recoverable from or refundable to customers. These include proceeds from the sale through the NYISO of transmission rights on CECONY’s transmission system (transmission congestion contracts or TCCs). | |||||||||||||||||
Temporary Cash Investments | Temporary Cash Investments | ||||||||||||||||
Temporary cash investments are short-term, highly-liquid investments that generally have maturities of three months or less at the date of purchase. They are stated at cost, which approximates market. The Companies consider temporary cash investments to be cash equivalents. | |||||||||||||||||
Investments | Investments | ||||||||||||||||
Investments consist primarily of the investments of Con Edison’s competitive energy businesses, which are accounted for under the equity method (depending on the subsidiaries’ percentage ownership). Utilities’ investments are recorded at fair value and include the investments of the deferred income plan and the supplemental retirement income plan in trust-owned life insurance assets. | |||||||||||||||||
Pension and Other Postretirement Benefits | Pension and Other Postretirement Benefits | ||||||||||||||||
The accounting rules for retirement benefits require an employer to recognize an asset or liability for the overfunded or underfunded status of its pension and other postretirement benefit plans. For a pension plan, the asset or liability is the difference between the fair value of the plan’s assets and the projected benefit obligation. For any other postretirement benefit plan, the asset or liability is the difference between the fair value of the plan’s assets and the accumulated postretirement benefit obligation. The accounting rules generally require employers to recognize all unrecognized prior service costs and credits and unrecognized actuarial gains and losses in accumulated other comprehensive income (OCI), net of tax. Such amounts will be adjusted as they are subsequently recognized as components of net periodic benefit cost or income pursuant to the current recognition and amortization provisions. | |||||||||||||||||
For the Utilities’ pension and other postretirement benefit plans, regulatory accounting treatment is generally applied in accordance with the accounting rules for regulated operations. Unrecognized prior service costs or credits and unrecognized actuarial gains and losses are recorded to regulatory assets or liabilities, rather than OCI. See Notes E and F. | |||||||||||||||||
The net periodic benefit costs are recognized in accordance with the accounting rules for retirement benefits. Investment gains and losses are recognized in expense over a 15-year period and other actuarial gains and losses are recognized in expense over a 10-year period, subject to the deferral provisions in the rate plans. | |||||||||||||||||
In accordance with the Statement of Policy issued by the NYSPSC and its current electric, gas and steam rate plans, CECONY defers for payment to or recovery from customers the difference between such expenses and the amounts for such expenses reflected in rates. Generally, O&R also defers such difference pursuant to its rate plans. See Note B – Regulatory Matters. | |||||||||||||||||
The Companies calculate the expected return on pension and other postretirement benefit plan assets by multiplying the expected rate of return on plan assets by the market-related value (MRV) of plan assets at the beginning of the year, taking into consideration anticipated contributions and benefit payments that are to be made during the year. The accounting rules allow the MRV of plan assets to be either fair value or a calculated value that recognizes changes in fair value in a systematic and rational manner over not more than five years. The Companies use a calculated value when determining the MRV of the plan assets that adjusts for 20 percent of the difference between fair value and expected MRV of plan assets. This calculated value has the effect of stabilizing variability in assets to which the Companies apply the expected return. | |||||||||||||||||
Income Taxes | Federal Income Tax | ||||||||||||||||
In accordance with the accounting rules for income taxes, the Companies have recorded an accumulated deferred federal income tax liability for temporary differences between the book and tax basis of assets and liabilities at current tax rates. In accordance with rate plans, the Utilities have recovered amounts from customers for a portion of the tax liability they will pay in the future as a result of the reversal or “turn-around” of these temporary differences. As to the remaining tax liability, in accordance with the accounting rules for regulated operations, the Utilities have established regulatory assets for the net revenue requirements to be recovered from customers for the related future tax expense. See Notes B and L. In 1993, the NYSPSC issued a Policy Statement approving accounting procedures consistent with the accounting rules for income taxes and providing assurances that these future increases in taxes will be recoverable in rates. See Note L. | |||||||||||||||||
Accumulated deferred investment tax credits are amortized ratably over the lives of the related properties and applied as a reduction to future federal income tax expense. | |||||||||||||||||
Con Edison and its subsidiaries file a consolidated federal income tax return. The consolidated income tax liability is allocated to each member of the consolidated group using the separate return method. Each member pays or receives an amount based on its own taxable income or loss in accordance with tax sharing agreements among the members of the consolidated group. Tax loss carryforwards are allocated among members in accordance with consolidated tax return regulations. | |||||||||||||||||
State Income Tax | |||||||||||||||||
Con Edison and its subsidiaries file a combined New York State Corporation Business Franchise Tax Return. Similar to a federal consolidated income tax return, the income of all entities in the combined group is subject to New York State taxation, after adjustments for differences between federal and New York law and apportionment of income among the states in which the company does business. Each member’s share of the New York State tax is based on its own New York State taxable income or loss. | |||||||||||||||||
Research and Development Costs | Research and Development Costs | ||||||||||||||||
Generally research and development costs are charged to operating expenses as incurred. Research and development costs were as follows: | |||||||||||||||||
For the Years Ended December 31, | |||||||||||||||||
(Millions of Dollars) | 2014 | 2013 | 2012 | ||||||||||||||
Con Edison | $ | 22 | $ | 18 | $ | 21 | |||||||||||
CECONY | 20 | 16 | 19 | ||||||||||||||
Reclassification | Reclassification | ||||||||||||||||
Certain prior year amounts have been reclassified to conform with the current year presentation. | |||||||||||||||||
Earnings Per Common Share | Earnings Per Common Share | ||||||||||||||||
Con Edison presents basic and diluted earnings per share on the face of its consolidated income statement. Basic earnings per share (EPS) are calculated by dividing earnings available to common shareholders (“Net income for common stock” on Con Edison’s consolidated income statement) by the weighted average number of Con Edison common shares outstanding during the period. In the calculation of diluted EPS, weighted average shares outstanding are increased for additional shares that would be outstanding if potentially dilutive securities were converted to common stock. | |||||||||||||||||
Potentially dilutive securities for Con Edison consist of restricted stock units, deferred stock units and stock options for which the average market price of the common shares for the period was greater than the exercise price. See Note M. | |||||||||||||||||
Basic and diluted EPS for Con Edison are calculated as follows: | |||||||||||||||||
For the Years Ended December 31, | |||||||||||||||||
(Millions of Dollars, except per share amounts/Shares in Millions) | 2014 | 2013 | 2012 | ||||||||||||||
Net income for common stock | $ | 1,092 | $ | 1,062 | $ | 1,138 | |||||||||||
Weighted average common shares outstanding – Basic | 292.9 | 292.9 | 292.9 | ||||||||||||||
Add: Incremental shares attributable to effect of potentially dilutive securities | 1.1 | 1.5 | 1.6 | ||||||||||||||
Adjusted weighted average common shares outstanding – Diluted | 294 | 294.4 | 294.5 | ||||||||||||||
Net Income for common stock per common share – basic | $ | 3.73 | $ | 3.62 | $ | 3.88 | |||||||||||
Net Income for common stock per common share – diluted | $ | 3.71 | $ | 3.61 | $ | 3.86 | |||||||||||
The computation of diluted EPS for the years ended December 31, 2014, 2013 and 2012 exclude immaterial amounts of performance share awards that were not included because of their anti-dilutive effect. | |||||||||||||||||
Estimates | Estimates | ||||||||||||||||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |||||||||||||||||
Changes in Accumulated Other Comprehensive Income by Component | Changes in Accumulated Other Comprehensive Income by Component | ||||||||||||||||
Changes to accumulated other comprehensive income (OCI) for Con Edison and CECONY are as follows: | |||||||||||||||||
(Millions of Dollars) | Con Edison | CECONY | |||||||||||||||
Accumulated OCI, net of taxes, at December 31, 2012 | $ | (53 | ) | $ | (9 | ) | |||||||||||
OCI before reclassifications, net of tax of $(15) and $(1) for Con Edison and CECONY, respectively | 21 | 2 | |||||||||||||||
Amounts reclassified from accumulated OCI related to pension plan liabilities, net of tax of $(5) and $(1) for Con Edison and CECONY, respectively(a)(b) | 7 | 1 | |||||||||||||||
Total OCI, net of taxes, at December 31, 2013 | 28 | 3 | |||||||||||||||
Accumulated OCI, net of taxes, at December 31, 2013(b) | $ | (25 | ) | $ | (6 | ) | |||||||||||
OCI before reclassifications, net of tax of $18 and $4 for Con Edison and CECONY, respectively | (26 | ) | (6 | ) | |||||||||||||
Amounts reclassified from accumulated OCI related to pension plan liabilities, net of tax of $(4) and $(1) for Con Edison and CECONY, respectively(a)(b) | 6 | 1 | |||||||||||||||
Total OCI, net of taxes, at December 31, 2014 | (20 | ) | (5 | ) | |||||||||||||
Accumulated OCI, net of taxes, at December 31, 2014(b) | $ | (45 | ) | ($ | 11 | ) | |||||||||||
(a) | For the portion of unrecognized pension and other postretirement benefit costs relating to the regulated Utilities, costs are recorded into, and amortized out of, regulatory assets instead of OCI. The net actuarial losses and prior service costs recognized during the period are included in the computation of net periodic pension and other postretirement benefit cost. See Notes E and F. | ||||||||||||||||
(b) | Tax reclassified from accumulated OCI is reported in the income tax expense line item of the income statement. | ||||||||||||||||
New Financial Accounting Standards | New Financial Accounting Standards | ||||||||||||||||
In April 2014, the Financial Accounting Standards Board (FASB) issued amendments on reporting discontinued operations through Accounting Standards Update (ASU) No. 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” The amendments revise the definition of a discontinued operation as a disposal of a component of an entity or a group of components of an entity, or a business or nonprofit activity that represents a strategic shift that has or will have a major effect on an entity’s operations and financial results. The amendments also require additional disclosures for discontinued operations and individually significant disposals that do not qualify for discontinued operations presentation in the financial statements. For public entities, the amendments are effective prospectively for reporting periods beginning on or after December 15, 2014. The application of this guidance does not have a material impact on the Companies’ financial position, results of operations and liquidity. | |||||||||||||||||
In May 2014, the FASB and the International Accounting Standards Board (IASB) jointly issued a revenue recognition standard that will supersede the revenue recognition | |||||||||||||||||
requirements within Accounting Standards Codification (ASC) Topic 605, “Revenue Recognition,” and most industry-specific guidance under the Codification through ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” The purpose of the new guidance is to create a consistent framework for revenue recognition. The guidance clarifies how to measure and recognize revenue arising from customer contracts to depict the transfer of goods or services in an amount that reflects the consideration the entity expects to receive. The new guidance must be adopted using either a full retrospective approach or a modified retrospective approach. For public entities reporting under GAAP, the new guidance is effective for periods beginning after December 15, 2016. The Companies are in the process of evaluating the application and impact of the new guidance on the Companies’ financial position, results of operations and liquidity. | |||||||||||||||||
In June 2014, the FASB issued ASU No. 2014-12, “Compensation—Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (a consensus of the FASB Emerging Issues Task Force).” The amendments clarify the accounting treatment regarding performance targets. Under the new guidance, a performance target that affects vesting and that could be achieved after the requisite service period is required to be treated as a performance condition and should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized only when it becomes probable that the performance target will be achieved. The amendments are effective for periods beginning after December 15, 2015. The application of this guidance is not expected to have a material impact on the Companies’ financial position, results of operations and liquidity. | |||||||||||||||||
In August 2014, the FASB issued amendments on reporting about an entity’s ability to continue as a going concern in ASU No. 2014-15, “Presentation of Financial Statements – Going Concern (Subtopic 205 - 40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” The amendments provide guidance about management’s responsibility to evaluate whether there is substantial doubt surrounding an entity’s ability to continue as a going concern. If management concludes that substantial doubt exists, the amendments also require additional disclosures relating to management’s evaluation and conclusion. The amendments are effective for the annual reporting period ending after December 15, 2016 and interim periods thereafter. The application of this guidance is not expected to have a material impact on the Companies’ financial position, results of operations and liquidity. | |||||||||||||||||
In November 2014, the FASB issued amendments on pushdown accounting for subsidiaries and acquired entities in ASU No. 2014-17, “Business Combinations (Topic 805): Pushdown Accounting.” The amendments provide guidance as to whether and at what threshold an acquired entity can apply pushdown accounting in its separate financial statements. The amendments are effective as of the date of issuance. The application of this guidance does not have a material impact on the Companies’ financial position, results of operations and liquidity. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||
Capitalized Cost of Utility Plant | At December 31, 2014 and 2013, the capitalized cost of the Companies’ utility plant, net of accumulated depreciation, was as follows: | ||||||||||||||||
Con Edison | CECONY | ||||||||||||||||
(Millions of Dollars) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Electric | |||||||||||||||||
Generation | $ | 451 | $ | 452 | $ | 451 | $ | 452 | |||||||||
Transmission | 2,956 | 2,776 | 2,744 | 2,597 | |||||||||||||
Distribution | 16,361 | 15,277 | 15,531 | 14,496 | |||||||||||||
Gas* | 5,006 | 4,469 | 4,530 | 4,013 | |||||||||||||
Steam | 1,795 | 1,790 | 1,795 | 1,790 | |||||||||||||
General | 1,650 | 1,565 | 1,498 | 1,433 | |||||||||||||
Held for future use | 76 | 73 | 65 | 62 | |||||||||||||
Construction work in progress | 1,031 | 1,393 | 971 | 1,303 | |||||||||||||
Net Utility Plant | $ | 29,326 | $ | 27,795 | $ | 27,585 | $ | 26,146 | |||||||||
* | Primarily distribution. | ||||||||||||||||
Schedule of Total Excise Taxes Recorded in Operating Revenues | Total excise taxes (inclusive of gross receipts taxes) recorded in operating revenues were as follows: | ||||||||||||||||
For the Years Ended December 31, | |||||||||||||||||
(Millions of Dollars) | 2014 | 2013 | 2012 | ||||||||||||||
Con Edison | $ | 365 | $ | 354 | $ | 334 | |||||||||||
CECONY | 343 | 329 | 306 | ||||||||||||||
Research and Development Costs | Generally research and development costs are charged to operating expenses as incurred. Research and development costs were as follows: | ||||||||||||||||
For the Years Ended December 31, | |||||||||||||||||
(Millions of Dollars) | 2014 | 2013 | 2012 | ||||||||||||||
Con Edison | $ | 22 | $ | 18 | $ | 21 | |||||||||||
CECONY | 20 | 16 | 19 | ||||||||||||||
Earnings Per Common Share | Basic and diluted EPS for Con Edison are calculated as follows: | ||||||||||||||||
For the Years Ended December 31, | |||||||||||||||||
(Millions of Dollars, except per share amounts/Shares in Millions) | 2014 | 2013 | 2012 | ||||||||||||||
Net income for common stock | $ | 1,092 | $ | 1,062 | $ | 1,138 | |||||||||||
Weighted average common shares outstanding – Basic | 292.9 | 292.9 | 292.9 | ||||||||||||||
Add: Incremental shares attributable to effect of potentially dilutive securities | 1.1 | 1.5 | 1.6 | ||||||||||||||
Adjusted weighted average common shares outstanding – Diluted | 294 | 294.4 | 294.5 | ||||||||||||||
Net Income for common stock per common share – basic | $ | 3.73 | $ | 3.62 | $ | 3.88 | |||||||||||
Net Income for common stock per common share – diluted | $ | 3.71 | $ | 3.61 | $ | 3.86 | |||||||||||
Changes in Accumulated Other Comprehensive Income by Component | Changes to accumulated other comprehensive income (OCI) for Con Edison and CECONY are as follows: | ||||||||||||||||
(Millions of Dollars) | Con Edison | CECONY | |||||||||||||||
Accumulated OCI, net of taxes, at December 31, 2012 | $ | (53 | ) | $ | (9 | ) | |||||||||||
OCI before reclassifications, net of tax of $(15) and $(1) for Con Edison and CECONY, respectively | 21 | 2 | |||||||||||||||
Amounts reclassified from accumulated OCI related to pension plan liabilities, net of tax of $(5) and $(1) for Con Edison and CECONY, respectively(a)(b) | 7 | 1 | |||||||||||||||
Total OCI, net of taxes, at December 31, 2013 | 28 | 3 | |||||||||||||||
Accumulated OCI, net of taxes, at December 31, 2013(b) | $ | (25 | ) | $ | (6 | ) | |||||||||||
OCI before reclassifications, net of tax of $18 and $4 for Con Edison and CECONY, respectively | (26 | ) | (6 | ) | |||||||||||||
Amounts reclassified from accumulated OCI related to pension plan liabilities, net of tax of $(4) and $(1) for Con Edison and CECONY, respectively(a)(b) | 6 | 1 | |||||||||||||||
Total OCI, net of taxes, at December 31, 2014 | (20 | ) | (5 | ) | |||||||||||||
Accumulated OCI, net of taxes, at December 31, 2014(b) | $ | (45 | ) | ($ | 11 | ) | |||||||||||
(a) | For the portion of unrecognized pension and other postretirement benefit costs relating to the regulated Utilities, costs are recorded into, and amortized out of, regulatory assets instead of OCI. The net actuarial losses and prior service costs recognized during the period are included in the computation of net periodic pension and other postretirement benefit cost. See Notes E and F. | ||||||||||||||||
(b) | Tax reclassified from accumulated OCI is reported in the income tax expense line item of the income statement. |
Regulatory_Matters_Tables
Regulatory Matters (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Regulatory Assets and Liabilities | Regulatory Assets and Liabilities | ||||||||||||||||
Regulatory assets and liabilities at December 31, 2014 and 2013 were comprised of the following items: | |||||||||||||||||
Con Edison | CECONY | ||||||||||||||||
(Millions of Dollars) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Regulatory assets | |||||||||||||||||
Unrecognized pension and other postretirement costs | $ | 4,846 | $ | 2,730 | $ | 4,609 | $ | 2,610 | |||||||||
Future income tax | 2,273 | 2,145 | 2,166 | 2,030 | |||||||||||||
Environmental remediation costs | 925 | 938 | 820 | 830 | |||||||||||||
Deferred storm costs | 319 | 441 | 224 | 334 | |||||||||||||
Revenue taxes | 219 | 207 | 208 | 196 | |||||||||||||
Surcharge for New York State assessment | 99 | 78 | 92 | 74 | |||||||||||||
Pension and other postretirement benefits deferrals | 66 | 237 | 42 | 211 | |||||||||||||
Net electric deferrals | 63 | 83 | 63 | 83 | |||||||||||||
Unamortized loss on reacquired debt | 57 | 65 | 55 | 62 | |||||||||||||
O&R property tax reconciliation | 36 | 22 | - | - | |||||||||||||
O&R transition bond charges | 27 | 33 | - | - | |||||||||||||
Preferred stock redemption | 27 | 28 | 27 | 28 | |||||||||||||
Deferred derivative losses – noncurrent | 25 | 8 | 23 | 7 | |||||||||||||
Recoverable energy costs – noncurrent | 19 | 29 | 17 | 28 | |||||||||||||
Workers’ compensation | 8 | 12 | 8 | 12 | |||||||||||||
Other | 147 | 145 | 127 | 134 | |||||||||||||
Regulatory assets – noncurrent | 9,156 | 7,201 | 8,481 | 6,639 | |||||||||||||
Deferred derivative losses – current | 97 | 25 | 92 | 22 | |||||||||||||
Recoverable energy costs – current | 41 | 4 | 40 | 4 | |||||||||||||
Future income tax – current | 10 | - | - | - | |||||||||||||
Regulatory assets – current | 148 | 29 | 132 | 26 | |||||||||||||
Total Regulatory Assets | $ | 9,304 | $ | 7,230 | $ | 8,613 | $ | 6,665 | |||||||||
Regulatory liabilities | |||||||||||||||||
Allowance for cost of removal less salvage | $ | 598 | $ | 540 | $ | 499 | $ | 453 | |||||||||
Property tax reconciliation | 295 | 322 | 295 | 322 | |||||||||||||
2014 rate plan rate base revenue deferrals | 155 | - | 155 | - | |||||||||||||
Net unbilled revenue deferrals | 138 | 133 | 138 | 133 | |||||||||||||
Prudence proceeding | 105 | 40 | 105 | 40 | |||||||||||||
Property tax refunds | 87 | 130 | 87 | 130 | |||||||||||||
Long-term interest rate reconciliation | 78 | 105 | 78 | 105 | |||||||||||||
New York State income tax rate change | 62 | - | 59 | - | |||||||||||||
Carrying charges on repair allowance and bonus depreciation | 58 | 88 | 57 | 87 | |||||||||||||
Pension and other postretirement benefit deferrals | 46 | 50 | 37 | 50 | |||||||||||||
World Trade Center settlement proceeds | 41 | 62 | 41 | 62 | |||||||||||||
Carrying charges on T&D net plant – electric and steam | 21 | 28 | 20 | 20 | |||||||||||||
Electric excess earnings | 19 | 22 | 18 | 18 | |||||||||||||
Other | 290 | 208 | 248 | 178 | |||||||||||||
Regulatory liabilities – noncurrent | 1,993 | 1,728 | 1,837 | 1,598 | |||||||||||||
Refundable energy costs – current | 128 | 100 | 84 | 66 | |||||||||||||
Revenue decoupling mechanism | 30 | 34 | 30 | 30 | |||||||||||||
Future income tax | 24 | - | 24 | - | |||||||||||||
Deferred derivative gains – current | 5 | 14 | 4 | 11 | |||||||||||||
Regulatory liabilities—current | 187 | 148 | 142 | 107 | |||||||||||||
Total Regulatory Liabilities | $ | 2,180 | $ | 1,876 | $ | 1,979 | $ | 1,705 | |||||||||
Rockland Electric Company (RECO) [Member] | |||||||||||||||||
Summary of Utilities Rate Plans | Rockland Electric Company (RECO) | ||||||||||||||||
Effective period | May 2010 – July 2014 | August 2014 – July 2015 | |||||||||||||||
Base rate changes | Yr. 1 – $9.8 million | Yr. 1 – $13.0 million | |||||||||||||||
Amortization to income of net | $(3.9) million over four years and $(4.9) million of deferred storm costs over five years | $0.4 million over three years and $(25.6) million of deferred storm costs over four years | |||||||||||||||
regulatory (assets) and liabilities | |||||||||||||||||
Recoverable energy costs | Current rate recovery of purchased power costs. | Continuation of current rate recovery of purchased power costs. | |||||||||||||||
Cost reconciliations | None | None | |||||||||||||||
Average rate base | $148.6 million | $172.2 million | |||||||||||||||
Weighted average cost of capital | 8.21 percent | 7.83 percent | |||||||||||||||
(after-tax) | |||||||||||||||||
Authorized return on common equity | 10.3 percent | 9.75 percent | |||||||||||||||
Cost of long-term debt | 6.16 percent | 5.89 percent | |||||||||||||||
Common equity ratio | 50 percent | 50 percent | |||||||||||||||
Electric Transmission [Member] | CECONY [Member] | |||||||||||||||||
Summary of Utilities Rate Plans | The following tables contain a summary of the Utilities’ rate plans: | ||||||||||||||||
CECONY – Electric | |||||||||||||||||
Effective period | April 2010 – December 2013 | January 2014 – December 2015 | |||||||||||||||
Base rate changes(a) | Yr. 1 – $420 million | Yr. 1 – $(76.2) million(c) | |||||||||||||||
Yr. 2 – $420 million | Yr. 2 – $124.0 million(c) | ||||||||||||||||
Yr. 3 – $287 million(b) | |||||||||||||||||
Amortizations to income of net | $(75.3) million over three years | $(37) million over two years, that includes $107 million annually for deferred major storm costs | |||||||||||||||
regulatory (assets) and liabilities | |||||||||||||||||
Other revenue sources | Retention of $120 million of annual transmission congestion revenues from the sale of transmission rights ($90 million for the period April 1, 2013 to December 31, 2013). | Retention of $90 million of annual transmission congestion revenues. | |||||||||||||||
Revenue decoupling mechanisms | In 2012 and 2013, the company deferred for customer benefit $59 million and $34 million of revenues, respectively. | In 2014, the company deferred for customer benefit $146 million of revenues. | |||||||||||||||
Recoverable energy costs | Current rate recovery of purchased power and fuel costs. | Continuation of current rate recovery of purchased power and fuel costs(d). | |||||||||||||||
Negative revenue adjustments | Potential penalties (up to $350 million annually) if certain performance targets are not met. In 2012 and 2013, the company did not record any negative revenue adjustments. | Potential penalties (up to $400 million annually) if certain performance targets are not met. In 2014, the company recorded a $5 million negative revenue adjustment. | |||||||||||||||
Cost reconciliations(e) | In 2012 and 2013, the company deferred $146 million of net regulatory liabilities and $35 million of net regulatory assets, respectively. | In 2014, the company deferred $57 million of net regulatory liabilities. | |||||||||||||||
Net utility plant reconciliations | Target levels reflected in rates were: | Target levels reflected in rates were: | |||||||||||||||
Transmission and distribution: Yr. 1 –$13,818 million; Yr. 2 – $14,742 million; | Transmission and distribution: Yr. 1 – $16,869 million; Yr. 2 – $17,401 million | ||||||||||||||||
Yr. 3 – $15,414 million | Storm hardening: Yr. 1 – $89 million; Yr. 2 – $177 million | ||||||||||||||||
Enterprise resource project: Yr. 2 – $25 million; | Other: Yr. 1 – $2,034 million; Yr. 2 – $2,102 million | ||||||||||||||||
Yr. 3 -$115 million | The company deferred an immaterial amount as a regulatory liability in 2014. | ||||||||||||||||
Other: Yr. 1 – $1,487 million; | |||||||||||||||||
Yr. 2 – $1,565 million; Yr. 3 – $1,650 million | |||||||||||||||||
The company deferred an immaterial amount and $7 million as a regulatory liability in 2012 and 2013, respectively. | |||||||||||||||||
Average rate base | Yr. 1 – $14,887 million | Yr. 1 – $17,323 million | |||||||||||||||
Yr. 2 – $15,987 million | Yr. 2 – $18,113 million | ||||||||||||||||
Yr. 3 – $16,826 million | |||||||||||||||||
Weighted average cost of capital (after-tax) | 7.76 percent | Yr. 1 – 7.05 percent | |||||||||||||||
Yr. 2 – 7.08 percent | |||||||||||||||||
Authorized return on common equity | 10.15 percent assuming the company achieved austerity measures of $27 million, $20 million and $13 million for Yrs. 1, 2 and 3. Austerity measures were achieved. | 9.2 percent | |||||||||||||||
Earnings sharing | Actual earnings above an annual earnings threshold of 11.15 percent for Yr. 1 and 10.65 percent for Yrs. 2 and 3 were to be applied to reduce regulatory assets for pensions and other postretirement benefits and other costs. | Most earnings above an annual earnings threshold of 9.8 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 $17.5 million above the threshold for the period ended 2013. | |||||||||||||||||
Cost of long-term debt | 5.65 percent | Yr. 1 – 5.17 percent | |||||||||||||||
Yr. 2 – 5.23 percent | |||||||||||||||||
Common equity ratio | 48 percent | 48 percent | |||||||||||||||
(a) | $249 million of annual revenues collected from electric customers is subject to potential refund following NYSPSC staff review of costs. See “Other Regulatory Matters” below in this Note B. Revenues for each of 2014 and 2015 include $21 million as funding for major storm reserve. | ||||||||||||||||
(b) | Temporary portion of the increase ($134 million) that was scheduled to go into effect April 1, 2012 was eliminated by the application of available credits. | ||||||||||||||||
(c) | The impact of these base rate changes is being deferred which will result in a $30 million regulatory liability at December 31, 2015. | ||||||||||||||||
(d) | With respect to transmission service provided pursuant to the open access transmission tariff of PJM Interconnection L.L.C. (PJM), the company recovered in 2014 part of charges incurred during 2013 (approximately $20 million) and, commencing in January 2014 and unless and until changed by the NYSPSC, the company will recover all charges incurred associated with the transmission service. In January 2014, PJM submitted to FERC a request that would substantially increase the charges for the transmission service. CECONY has opposed this increase. | ||||||||||||||||
(e) | Deferrals for property taxes were limited to 80 percent (90 percent beginning 2014) 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. | ||||||||||||||||
Electric Transmission [Member] | O&R [Member] | |||||||||||||||||
Summary of Utilities Rate Plans | O&R New York – Electric | ||||||||||||||||
Effective period | July 2012 – June 2015 | ||||||||||||||||
Base rate changes | Yr. 1 – $19.4 million | ||||||||||||||||
Yr. 2 – $8.8 million | |||||||||||||||||
Yr. 3 – $15.2 million | |||||||||||||||||
Amortizations to income of net | $(32.2) million over three years | ||||||||||||||||
regulatory (assets) and liabilities | |||||||||||||||||
Revenue decoupling mechanisms | In 2012, 2013 and 2014, the company deferred for the customer’s benefit $2.6 million, $3.2 million and ($3.4) million. | ||||||||||||||||
Recoverable energy costs | Current rate recovery of purchased power and fuel costs. | ||||||||||||||||
Negative revenue adjustments | Potential penalties (up to $3 million annually) if certain customer service and system reliability performance targets are not met. In 2012, 2013 and 2014, the company did not record any negative revenue adjustments. | ||||||||||||||||
Cost reconciliations | In 2012, 2013 and 2014, the company deferred $7.8 million, $4.1 million and $(0.2) million as a net increase to regulatory assets, respectively. | ||||||||||||||||
Net utility plant reconciliations | Target levels reflected in rates were: | ||||||||||||||||
Yr. 1 – $678 million; Yr. 2- $704 million; Yr. 3 – $753 million | |||||||||||||||||
The company increased its regulatory liability by $4.2 million in 2012. The company reduced its regulatory, liability by $1.1 million and $2.3 million in 2013 and 2014, respectively. | |||||||||||||||||
Average rate base | Yr. 1 – $671 million | ||||||||||||||||
Yr. 2 – $708 million | |||||||||||||||||
Yr. 3 – $759 million | |||||||||||||||||
Weighted average cost of capital (after-tax) | Yr. 1 – 7.61 percent | ||||||||||||||||
Yr. 2 – 7.65 percent | |||||||||||||||||
Yr. 3 – 7.48 percent | |||||||||||||||||
Authorized return on common equity | Yr. 1 – 9.4 percent | ||||||||||||||||
Yr. 2 – 9.5 percent | |||||||||||||||||
Yr. 3 – 9.6 percent | |||||||||||||||||
Earnings sharing | The company recorded a regulatory liability of $1 million for earnings above the sharing threshold under the rate plan as of December 31, 2014. | ||||||||||||||||
Cost of long-term debt | Yr. 1 – 6.07 percent | ||||||||||||||||
Yr. 2 – 6.07 percent | |||||||||||||||||
Yr. 3 – 5.64 percent | |||||||||||||||||
Common equity ratio | 48 percent | ||||||||||||||||
Electric Transmission [Member] | Pike County Light & Power Company (Pike) [Member] | |||||||||||||||||
Summary of Utilities Rate Plans | Pike County Light & Power Company (Pike) – Electric | ||||||||||||||||
Effective period | April 2009 – August 2014 | September 2014 – August 2015 | |||||||||||||||
Base rate changes(a) | Yr. 1 – $0.9 million | Yr. 1 – $1.25 million | |||||||||||||||
Amortization to income of net regulatory (assets) and liabilities | $0.1 million over 5 years | $(0.7) million of deferred storm costs over five years | |||||||||||||||
Cost reconciliations | True-up of Other Postretirement Benefits costs. The company deferred an immaterial amount as regulatory liabilities in 2012 and 2013. | True-up of Other Postretirement Benefits costs. The company deferred an immaterial amount as a regulatory liability in 2014. | |||||||||||||||
(a) | Under the current plan, the earliest that the company can file for a new base rate change is September 1, 2016. | ||||||||||||||||
Gas [Member] | CECONY [Member] | |||||||||||||||||
Summary of Utilities Rate Plans | CECONY – Gas | ||||||||||||||||
Effective period | October 2010 – December 2013 | January 2014 – December 2016 | |||||||||||||||
Base rate changes(a) | Yr. 1 – $47 million | Yr. 1 – $(54.6) million(b) | |||||||||||||||
Yr. 2 – $48 million | Yr. 2 – $38.6 million(b) | ||||||||||||||||
Yr. 3 – $47 million | Yr. 3 – $56.8 million(b) | ||||||||||||||||
Amortizations to income of net | $(53.1) million over three years | $4 million over three years | |||||||||||||||
regulatory (assets) and liabilities | |||||||||||||||||
Other revenue sources | Retention of revenues from non-firm customers of up to $58 million and 25 percent of any such revenues above $58 million. The company retained $57 million and $64 million of such revenues in 2012 and 2013, respectively. | Retention of revenues from non-firm customers of up to $65 million and 15 percent of any such revenues above $65 million. The company retained $70 million of such revenues in 2014. | |||||||||||||||
Revenue decoupling mechanisms | In 2012 and 2013, the company deferred $22 million and $36 million of regulatory liabilities, respectively. | In 2014, the company deferred $28 million of regulatory liabilities. | |||||||||||||||
Recoverable energy costs | Current rate recovery of purchased gas costs. | Continuation of current rate recovery of purchased gas costs. | |||||||||||||||
Negative revenue adjustments | Potential penalties (up to $12.6 million annually) | Potential penalties (up to $33 million in 2014, $44 million in 2015, and $56 million in 2016) if certain gas performance targets are not met. In 2014, the company did not record any negative revenue adjustments. | |||||||||||||||
if certain gas customer service and system performance targets are not met. In 2012 and 2013, the company did not record any negative revenue adjustments. | |||||||||||||||||
Cost reconciliations(c) | In 2012 and 2013, the company deferred $9 million and $26 million of net regulatory assets, respectively. | In 2014, the company deferred $38 million of net regulatory liabilities. | |||||||||||||||
Net utility plant reconciliations | Target levels reflected in rates were: | Target levels reflected in rates were: | |||||||||||||||
Gas delivery Yr. 1 – $2,934 million; | Gas delivery Yr. 1 – $3,899 million; | ||||||||||||||||
Yr. 2 – $3,148 million; Yr. 3 – $3,346 million | Yr. 2 – $4,258 million; Yr. 3 – $4,698 million | ||||||||||||||||
For 2012 and 2013, $2.9 million and $9.5 million were deferred as a regulatory liability respectively. | Storm hardening: Yr. 1 – $3 million; | ||||||||||||||||
Yr. 2 – $8 million; Yr. 3 – $30 million | |||||||||||||||||
There were no deferrals recorded in 2014. | |||||||||||||||||
Average rate base | Yr. 1 – $3,027 million | Yr. 1 – $3,521 million | |||||||||||||||
Yr. 2 – $3,245 million | Yr. 2 – $3,863 million | ||||||||||||||||
Yr. 3 – $3,434 million | Yr. 3 – $4,236 million | ||||||||||||||||
Weighted average cost of capital | 7.46 percent | Yr. 1 – 7.10 percent | |||||||||||||||
(after-tax) | Yr. 2 – 7.13 percent | ||||||||||||||||
Yr. 3 – 7.21 percent | |||||||||||||||||
Authorized return on common equity | 9.6 percent assuming the company achieved unspecified austerity measures of $4 million and $2 million in 2012 and 2013. Austerity measures were achieved. | 9.3 percent | |||||||||||||||
Earnings sharing | Actual earnings did not exceed the thresholds of 10.35 percent in Yr. 1 and 10.15 percent in Yrs. 2 and 3. | Most 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. | |||||||||||||||
Cost of long-term debt | 5.57 percent | Yr. 1 – 5.17 percent | |||||||||||||||
Yr. 2 – 5.23 percent | |||||||||||||||||
Yr. 3 – 5.39 percent | |||||||||||||||||
Common equity ratio | 48 percent | 48 percent | |||||||||||||||
(a) | $32 million of annual revenues collected from gas customers is subject to potential refund. See “Other Regulatory Matters” below. | ||||||||||||||||
(b) | The impact of these base rate changes is being deferred which will result in a $32 million regulatory liability at December 31, 2016. | ||||||||||||||||
(c) | Deferrals for property taxes were limited to 80 percent (90 percent beginning 2014) 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. | ||||||||||||||||
Gas [Member] | O&R [Member] | |||||||||||||||||
Summary of Utilities Rate Plans | O&R New York – Gas | ||||||||||||||||
Effective period | November 2009 – December 2014 | ||||||||||||||||
Base rate changes | Yr. 1 – $9 million | ||||||||||||||||
Yr. 2 – $9 million | |||||||||||||||||
Yr. 3 – $4.6 million | |||||||||||||||||
Yr. 3 – $4.3 million collected through a surcharge | |||||||||||||||||
Amortization to income of net regulatory (assets) and liabilities | $(2) million over three years | ||||||||||||||||
Revenue decoupling mechanisms | In 2012, 2013 and 2014, the company deferred $4.7 million, $0.7 million and $(0.1) million of regulatory liabilities, respectively. | ||||||||||||||||
Recoverable energy costs | Current rate recovery of purchased gas costs. | ||||||||||||||||
Negative revenue adjustments | Potential penalties (up to $1.4 million annually) if certain operations and customer service requirements are not met. In 2012, 2013 and 2014, the company did not record any negative revenue adjustments. | ||||||||||||||||
Cost reconciliations | In 2012, 2013 and 2014, the company deferred $0.7 million, $8.3 million and $8.3 million as net regulatory assets, respectively. | ||||||||||||||||
Net utility plant reconciliations | The company deferred $0.7 million in 2012 as a regulatory asset and no deferrals were recorded for 2013 or 2014. | ||||||||||||||||
Average rate base | Yr. 1 – $280 million | ||||||||||||||||
Yr. 2 – $296 million | |||||||||||||||||
Yr. 3 – $309 million | |||||||||||||||||
Weighted average cost of capital (after-tax) | 8.49 percent | ||||||||||||||||
Authorized return on common equity | 10.4 percent | ||||||||||||||||
Earnings sharing | Earnings above an annual earnings threshold of 11.4 percent are to be applied to reduce regulatory assets. In 2012, 2013 and 2014, earnings did not exceed the earnings threshold. | ||||||||||||||||
Cost of long-term debt | 6.81 percent | ||||||||||||||||
Common equity ratio | 48 percent | ||||||||||||||||
Gas [Member] | Pike County Light & Power Company (Pike) [Member] | |||||||||||||||||
Summary of Utilities Rate Plans | Pike – Gas | ||||||||||||||||
Effective period | April 2009 – August 2014 | September 2014 – August 2015 | |||||||||||||||
Base Rate changes(a) | Yr. 1 – $0.3 million | Yr. 1 – $0.1 million | |||||||||||||||
Amortization to income of net regulatory (assets) and liabilities | None | None | |||||||||||||||
Cost reconciliations | True-up of Other Postretirement Benefits costs. The company deferred an immaterial amount as regulatory liabilities in 2012 and 2013. | True-up of Other Postretirement Benefits costs. The company deferred an immaterial amount as a regulatory liability in 2014. | |||||||||||||||
(a) | Under the current plan, the earliest that the company can file for a new base rate change is September 1, 2016. | ||||||||||||||||
Steam [Member] | CECONY [Member] | |||||||||||||||||
Summary of Utilities Rate Plans | CECONY – Steam | ||||||||||||||||
Effective period | October 2010 – December 2013 | January 2014 – December 2016 | |||||||||||||||
Base rate changes(a) | Yr. 1 – $49.5 million | Yr. 1 – $(22.4) million(b) | |||||||||||||||
Yr. 2 – $49.5 million | Yr. 2 – $19.8 million(b) | ||||||||||||||||
Yr. 3 – $17.8 million | Yr. 3 – $20.3 million(b) | ||||||||||||||||
Yr. 3 – $31.7 million collected through a surcharge | |||||||||||||||||
Amortizations to income of net | $(20.1) million over three years | $37 million over three years | |||||||||||||||
regulatory (assets) and liabilities | |||||||||||||||||
Recoverable energy costs | Current rate recovery of purchased power and fuel costs. | Continuation of current rate recovery of purchased power and fuel costs. | |||||||||||||||
Negative revenue adjustments | Potential penalties (up to $1 million annually) if certain steam performance targets are not met. In 2012 and 2013, the company did not record any negative revenue adjustments. | Potential penalties (up to $1 million annually) if certain steam performance targets are not met. In 2014, the company did not record any negative revenue adjustments. | |||||||||||||||
Cost reconciliations(c) | In 2012 and 2013, the company deferred $12 million and $17 million of net regulatory liabilities, respectively. | In 2014, the company deferred $42 million of net regulatory liabilities. | |||||||||||||||
Net utility plant reconciliations | Target levels reflected in rates were: | Target levels reflected in rates were: | |||||||||||||||
Production Yr. 1 – $415 million; | Production Yr. 1 – $1,752 million; | ||||||||||||||||
Yr. 2 – $426 million; Yr. 3 – $433 million | Yr. 2 – $1,732 million; Yr. 3 – $1,720 million | ||||||||||||||||
Distribution: Yr. 1 – $521 million; Yr. 2 – $534 million; Yr. 3 – $543 million | Distribution: Yr. 1 – $6 million; Yr. 2 – $11 million; Yr. 3 – $25 million | ||||||||||||||||
The company reduced its regulatory liability by $0.2 million in 2012 and made no deferral in 2013. | The company reduced its regulatory liability by $1.1 million in 2014. | ||||||||||||||||
Average rate base | Yr. 1 – $1,589 million | Yr. 1 – $1,511 million | |||||||||||||||
Yr. 2 – $1,603 million | Yr. 2 – $1,547 million | ||||||||||||||||
Yr. 3 – $1,613 million | Yr. 3 – $1,604 million | ||||||||||||||||
Weighted average cost of | 7.46 percent | Yr. 1 – 7.10 percent | |||||||||||||||
capital (after-tax) | Yr. 2 – 7.13 percent | ||||||||||||||||
Yr. 3 – 7.21 percent | |||||||||||||||||
Authorized return on common equity | 9.6 percent (assuming company achieved unspecified austerity measures of $3 million and $2 million in 2012 and 2013). Austerity measures were achieved. | 9.3 percent | |||||||||||||||
Earnings sharing | Weather normalized earnings did not exceed the threshold of 10.35 percent in Yr. 1 and 10.15 percent in Yrs. 2 and 3. In 2013, actual earnings were $0.5 million above the earnings threshold of 10.15 percent. | 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. | |||||||||||||||
Cost of long-term debt | 5.57 percent | Yr. 1 – 5.17 percent | |||||||||||||||
Yr. 2 – 5.23 percent | |||||||||||||||||
Yr. 3 – 5.39 percent | |||||||||||||||||
Common equity ratio | 48 percent | 48 percent | |||||||||||||||
(a) | $6 million of annual revenues collected from steam customers is subject to potential refund. See “Other Regulatory Matters” below in this Note B. | ||||||||||||||||
(b) | The impact of these base rate changes is being deferred which will result in an $8 million regulatory liability at December 31, 2016. | ||||||||||||||||
(c) | Deferrals for property taxes were limited to 80 percent (90 percent beginning 2014) 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. |
Capitalization_Tables
Capitalization (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Text Block [Abstract] | |||||||||||||||||
Schedule of Long-Term Debt Maturities | Long-term Debt | ||||||||||||||||
Long-term debt maturing in the period 2015-2019 is as follows: | |||||||||||||||||
(Millions of Dollars) | Con Edison | CECONY | |||||||||||||||
2015 | $ | 560 | $ | 350 | |||||||||||||
2016 | 731 | 650 | |||||||||||||||
2017 | 6 | - | |||||||||||||||
2018 | 1,260 | 1,200 | |||||||||||||||
2019 | 540 | 475 | |||||||||||||||
Carrying Amounts and Fair Values of Long-Term Debt | The carrying amounts and fair values of long-term debt at December 31, 2014 and 2013 are: | ||||||||||||||||
(Millions of Dollars) | 2014 | 2013 | |||||||||||||||
Long-Term Debt | Carrying | Fair | Carrying | Fair | |||||||||||||
(including current | Amount | Value | Amount | Value | |||||||||||||
portion) | |||||||||||||||||
Con Edison | $ | 12,191 | $ | 13,998 | $ | 10,974 | $ | 12,082 | |||||||||
CECONY | $ | 11,214 | $ | 12,846 | $ | 9,841 | $ | 10,797 |
Pension_Benefits_Tables
Pension Benefits (Tables) (Pension Benefits [Member]) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Pension Benefits [Member] | |||||||||||||||||||||||||
Net Periodic Benefit Costs | The components of the Companies’ total periodic benefit costs for 2014, 2013 and 2012 were as follows: | ||||||||||||||||||||||||
Con Edison | CECONY | ||||||||||||||||||||||||
(Millions of Dollars) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Service cost – including administrative expenses | $ | 227 | $ | 267 | $ | 237 | $ | 211 | $ | 249 | $ | 220 | |||||||||||||
Interest cost on projected benefit obligation | 572 | 537 | 547 | 536 | 503 | 513 | |||||||||||||||||||
Expected return on plan assets | (832 | ) | (750 | ) | (705 | ) | (789 | ) | (713 | ) | (670 | ) | |||||||||||||
Recognition of net actuarial loss | 618 | 832 | 709 | 586 | 788 | 670 | |||||||||||||||||||
Recognition of prior service costs | 4 | 5 | 8 | 2 | 4 | 6 | |||||||||||||||||||
NET PERIODIC BENEFIT COST | $ | 589 | $ | 891 | $ | 796 | $ | 546 | $ | 831 | $ | 739 | |||||||||||||
Amortization of regulatory asset* | 2 | 2 | 2 | 2 | 2 | 2 | |||||||||||||||||||
TOTAL PERIODIC BENEFIT COST | $ | 591 | $ | 893 | $ | 798 | $ | 548 | $ | 833 | $ | 741 | |||||||||||||
Cost capitalized | (225 | ) | (348 | ) | (277 | ) | (212 | ) | (327 | ) | (260 | ) | |||||||||||||
Reconciliation to rate level | 118 | (84 | ) | (8 | ) | 108 | (87 | ) | (12 | ) | |||||||||||||||
Cost charged to operating expenses | $ | 484 | $ | 461 | $ | 513 | $ | 444 | $ | 419 | $ | 469 | |||||||||||||
* | Relates to an increase in CECONY’s pension obligation of $45 million from a 1999 special retirement program. | ||||||||||||||||||||||||
Schedule of Funded Status | Funded Status | ||||||||||||||||||||||||
The funded status at December 31, 2014, 2013 and 2012 was as follows: | |||||||||||||||||||||||||
Con Edison | CECONY | ||||||||||||||||||||||||
(Millions of Dollars) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
CHANGE IN PROJECTED BENEFIT OBLIGATION | |||||||||||||||||||||||||
Projected benefit obligation at beginning of year | $ | 12,197 | $ | 13,406 | $ | 11,825 | $ | 11,429 | $ | 12,572 | $ | 11,072 | |||||||||||||
Service cost – excluding administrative expenses | 221 | 259 | 224 | 206 | 241 | 209 | |||||||||||||||||||
Interest cost on projected benefit obligation | 572 | 537 | 547 | 536 | 503 | 513 | |||||||||||||||||||
Net actuarial (gain)/loss | 2,641 | (1,469 | ) | 1,323 | 2,484 | (1,388 | ) | 1,255 | |||||||||||||||||
Plan amendments | 6 | - | - | - | - | - | |||||||||||||||||||
Benefits paid | (556 | ) | (536 | ) | (513 | ) | (518 | ) | (499 | ) | (477 | ) | |||||||||||||
PROJECTED BENEFIT OBLIGATION AT END OF YEAR | $ | 15,081 | $ | 12,197 | $ | 13,406 | $ | 14,137 | $ | 11,429 | $ | 12,572 | |||||||||||||
CHANGE IN PLAN ASSETS | |||||||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 10,755 | $ | 9,135 | $ | 7,800 | $ | 10,197 | $ | 8,668 | $ | 7,406 | |||||||||||||
Actual return on plan assets | 752 | 1,310 | 1,094 | 715 | 1,241 | 1,040 | |||||||||||||||||||
Employer contributions | 578 | 879 | 785 | 535 | 819 | 729 | |||||||||||||||||||
Benefits paid | (556 | ) | (536 | ) | (513 | ) | (518 | ) | (499 | ) | (477 | ) | |||||||||||||
Administrative expenses | (34 | ) | (33 | ) | (31 | ) | (32 | ) | (32 | ) | (30 | ) | |||||||||||||
FAIR VALUE OF PLAN ASSETS AT END OF YEAR | $ | 11,495 | $ | 10,755 | $ | 9,135 | $ | 10,897 | $ | 10,197 | $ | 8,668 | |||||||||||||
FUNDED STATUS | $ | (3,586 | ) | $ | (1,442 | ) | $ | (4,271 | ) | $ | (3,240 | ) | $ | (1,232 | ) | $ | (3,904 | ) | |||||||
Unrecognized net loss | $ | 4,888 | $ | 2,759 | $ | 5,594 | $ | 4,616 | $ | 2,617 | $ | 5,297 | |||||||||||||
Unrecognized prior service costs | 20 | 17 | 23 | 4 | 6 | 10 | |||||||||||||||||||
Accumulated benefit obligation | 13,454 | 11,004 | 11,911 | 12,553 | 10,268 | 11,116 | |||||||||||||||||||
Schedule of Assumptions | The actuarial assumptions were as follows: | ||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Weighted-average assumptions used to determine benefit obligations at December 31: | |||||||||||||||||||||||||
Discount rate | 3.9 | % | 4.8 | % | 4.1 | % | |||||||||||||||||||
Rate of compensation increase | |||||||||||||||||||||||||
– CECONY | 4.25 | % | 4.35 | % | 4.35 | % | |||||||||||||||||||
– O&R | 4 | % | 4.25 | % | 4.25 | % | |||||||||||||||||||
Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31: | |||||||||||||||||||||||||
Discount rate | 4.8 | % | 4.1 | % | 4.7 | % | |||||||||||||||||||
Expected return on plan assets | 8 | % | 8 | % | 8 | % | |||||||||||||||||||
Rate of compensation increase | |||||||||||||||||||||||||
– CECONY | 4.35 | % | 4.35 | % | 4.35 | % | |||||||||||||||||||
– O&R | 4.25 | % | 4.25 | % | 4.25 | % | |||||||||||||||||||
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) | 2015 | 2016 | 2017 | 2018 | 2019 | 2020-2024 | |||||||||||||||||||
Con Edison | $ | 592 | $ | 615 | $ | 636 | $ | 658 | $ | 678 | $ | 3,642 | |||||||||||||
CECONY | 552 | 574 | 594 | 613 | 632 | 3,388 | |||||||||||||||||||
Schedule of Plan Assets Allocations | The asset allocations for the pension plan at the end of 2014, 2013 and 2012, and the target allocation for 2015 are as follows: | ||||||||||||||||||||||||
Target | Plan Assets at December 31, | ||||||||||||||||||||||||
Allocation Range | |||||||||||||||||||||||||
Asset Category | 2015 | 2014 | 2013 | 2012 | |||||||||||||||||||||
Equity Securities | 55% - 65% | 58 | % | 60 | % | 60 | % | ||||||||||||||||||
Debt Securities | 27% - 33% | 32 | % | 30 | % | 31 | % | ||||||||||||||||||
Real Estate | 8% - 12% | 10 | % | 10 | % | 9 | % | ||||||||||||||||||
Total | 100% | 100 | % | 100 | % | 100 | % | ||||||||||||||||||
Schedule of Fair Value of Plan Assets | The fair values of the pension plan assets at December 31, 2014 by asset category are as follows: | ||||||||||||||||||||||||
(Millions of Dollars) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
U.S. Equity(a) | $ | 3,168 | $ | - | $ | - | $ | 3,168 | |||||||||||||||||
International Equity(b) | 2,841 | 361 | - | 3,202 | |||||||||||||||||||||
Private Equity(c) | - | - | 114 | 114 | |||||||||||||||||||||
U.S. Government Issued Debt(d) | - | 2,113 | - | 2,113 | |||||||||||||||||||||
Corporate Bonds Debt(e) | - | 1,351 | - | 1,351 | |||||||||||||||||||||
Structured Assets Debt(f) | - | 4 | - | 4 | |||||||||||||||||||||
Other Fixed Income Debt(g) | - | 208 | - | 208 | |||||||||||||||||||||
Real Estate(h) | - | - | 1,137 | 1,137 | |||||||||||||||||||||
Cash and Cash Equivalents(i) | 188 | 477 | - | 665 | |||||||||||||||||||||
Futures(j) | 192 | 37 | - | 229 | |||||||||||||||||||||
Hedge Funds(k) | - | - | 224 | 224 | |||||||||||||||||||||
Total investments | $ | 6,389 | $ | 4,551 | $ | 1,475 | $ | 12,415 | |||||||||||||||||
Funds for retiree health benefits(l) | (184 | ) | (131 | ) | (43 | ) | (358 | ) | |||||||||||||||||
Investments (excluding funds for retiree health benefits) | $ | 6,205 | $ | 4,420 | $ | 1,432 | $ | 12,057 | |||||||||||||||||
Pending activities(m) | (562 | ) | |||||||||||||||||||||||
Total fair value of plan net assets | $ | 11,495 | |||||||||||||||||||||||
(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) | Private Equity consists of global equity funds that are not exchange-traded. | ||||||||||||||||||||||||
(d) | U.S. Government Issued Debt includes agency and treasury securities. | ||||||||||||||||||||||||
(e) | Corporate Bonds Debt consists of debt issued by various corporations. | ||||||||||||||||||||||||
(f) | Structured Assets Debt includes commercial-mortgage-backed securities and collateralized mortgage obligations. | ||||||||||||||||||||||||
(g) | Other Fixed Income Debt includes municipal bonds, sovereign debt and regional governments. | ||||||||||||||||||||||||
(h) | Real Estate investments include real estate funds based on appraised values that are broadly diversified by geography and property type. | ||||||||||||||||||||||||
(i) | Cash and Cash Equivalents include short term investments, money markets, foreign currency and cash collateral. | ||||||||||||||||||||||||
(j) | Futures consist of exchange-traded financial contracts encompassing U.S. Equity, International Equity and U.S. Government indices. | ||||||||||||||||||||||||
(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. | ||||||||||||||||||||||||
The fair values of the pension plan assets at December 31, 2013 by asset category are as follows: | |||||||||||||||||||||||||
(Millions of Dollars) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
U.S. Equity(a) | $ | 3,057 | $ | - | $ | - | $ | 3,057 | |||||||||||||||||
International Equity(b) | 2,303 | 871 | - | 3,174 | |||||||||||||||||||||
Private Equity(c) | - | - | 67 | 67 | |||||||||||||||||||||
U.S. Government Issued Debt(d) | - | 1,855 | - | 1,855 | |||||||||||||||||||||
Corporate Bonds Debt(e) | - | 1,151 | - | 1,151 | |||||||||||||||||||||
Structured Assets Debt(f) | - | 4 | - | 4 | |||||||||||||||||||||
Other Fixed Income Debt(g) | - | 150 | - | 150 | |||||||||||||||||||||
Real Estate(h) | - | - | 1,062 | 1,062 | |||||||||||||||||||||
Cash and Cash Equivalents(i) | 127 | 558 | - | 685 | |||||||||||||||||||||
Futures(j) | 348 | - | - | 348 | |||||||||||||||||||||
Hedge Funds(k) | - | - | 206 | 206 | |||||||||||||||||||||
Total investments | $ | 5,835 | $ | 4,589 | $ | 1,335 | $ | 11,759 | |||||||||||||||||
Funds for retiree health benefits(l) | (185 | ) | (145 | ) | (42 | ) | (372 | ) | |||||||||||||||||
Investments(excluding funds for retiree health benefits) | $ | 5,650 | $ | 4,444 | $ | 1,293 | $ | 11,387 | |||||||||||||||||
Pending activities(m) | (632 | ) | |||||||||||||||||||||||
Total fair value of plan net assets | $ | 10,755 | |||||||||||||||||||||||
(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) | Private Equity consists of global equity funds that are not exchange-traded. | ||||||||||||||||||||||||
(d) | U.S. Government Issued Debt includes agency and treasury securities. | ||||||||||||||||||||||||
(e) | Corporate Bonds Debt consists of debt issued by various corporations. | ||||||||||||||||||||||||
(f) | Structured Assets Debt includes commercial-mortgage-backed securities and collateralized mortgage obligations. | ||||||||||||||||||||||||
(g) | Other Fixed Income Debt includes municipal bonds, sovereign debt and regional governments. | ||||||||||||||||||||||||
(h) | Real Estate investments include real estate funds based on appraised values that are broadly diversified by geography and property type. | ||||||||||||||||||||||||
(i) | Cash and Cash Equivalents include short term investments, money markets, foreign currency and cash collateral. | ||||||||||||||||||||||||
(j) | Futures consist of exchange-traded financial contracts encompassing U.S. Equity, International Equity and U.S. Government indices. | ||||||||||||||||||||||||
(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. | ||||||||||||||||||||||||
Reconciliation of Fair Value Balances for Net Assets | The table below provides a reconciliation of the beginning and ending net balances for assets at December 31, 2014 classified as Level 3 in the fair value hierarchy. | ||||||||||||||||||||||||
(Millions of Dollars) | Beginning | Assets Still Held | Assets Sold | Purchases | Transfer | Ending | |||||||||||||||||||
Balance as of | at Reporting Date – | During the | Sales and | In/(Out) of | Balance as of | ||||||||||||||||||||
January 1, 2014 | Unrealized Gains/ | Year – Realized | Settlements | Level 3 | December 31, | ||||||||||||||||||||
(Losses) | Gains/(Losses) | 2014 | |||||||||||||||||||||||
Real Estate | $ | 1,062 | $ | 86 | $ | 20 | $ | (31 | ) | $ | - | $ | 1,137 | ||||||||||||
Private Equity | 67 | 12 | - | 35 | - | 114 | |||||||||||||||||||
Hedge Funds | 206 | 11 | - | 7 | - | 224 | |||||||||||||||||||
Total investments | $ | 1,335 | $ | 109 | $ | 20 | $ | 11 | $ | - | $ | 1,475 | |||||||||||||
Funds for retiree health benefits | (42 | ) | (1 | ) | - | - | - | (43 | ) | ||||||||||||||||
Investments (excluding funds for retiree health benefits) | $ | 1,293 | $ | 108 | $ | 20 | $ | 11 | $ | - | $ | 1,432 | |||||||||||||
The table below provides a reconciliation of the beginning and ending net balances for assets at December 31, 2013 classified as Level 3 in the fair value hierarchy. | |||||||||||||||||||||||||
(Millions of Dollars) | Beginning | Assets Still Held | Assets Sold | Purchases | Transfer | Ending | |||||||||||||||||||
Balance as of | at Reporting Date – | During the | Sales and | In/(Out) of | Balance as of | ||||||||||||||||||||
January 1, 2013 | Unrealized | Year – Realized | Settlements | Level 3 | December 31, | ||||||||||||||||||||
Gains/(Losses) | Gains/(Losses) | 2013 | |||||||||||||||||||||||
Real Estate | $ | 833 | $ | 114 | $ | 1 | $ | 114 | $ | - | $ | 1,062 | |||||||||||||
Private Equity | 20 | 5 | - | 42 | - | 67 | |||||||||||||||||||
Hedge Funds | - | 6 | - | 200 | - | 206 | |||||||||||||||||||
Total investments | $ | 853 | $ | 125 | $ | 1 | $ | 356 | $ | - | $ | 1,335 | |||||||||||||
Funds for retiree health benefits | (31 | ) | (3 | ) | - | (8 | ) | - | (42 | ) | |||||||||||||||
Investments (excluding funds for retiree health benefits) | $ | 822 | $ | 122 | $ | 1 | $ | 348 | $ | - | $ | 1,293 | |||||||||||||
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) | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Con Edison | $ | 32 | $ | 30 | $ | 23 | |||||||||||||||||||
CECONY | 27 | 26 | 21 |
Other_Postretirement_Benefits_
Other Postretirement Benefits (Tables) (Other Postretirement Benefits [Member]) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Other Postretirement Benefits [Member] | |||||||||||||||||||||||||
Net Periodic Benefit Costs | The components of the Companies’ net periodic postretirement benefit costs for 2014, 2013 and 2012 were as follows: | ||||||||||||||||||||||||
Con Edison | CECONY | ||||||||||||||||||||||||
(Millions of Dollars) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Service cost | $ | 19 | $ | 23 | $ | 26 | $ | 15 | $ | 18 | $ | 21 | |||||||||||||
Interest cost on accumulated other postretirement benefit obligation | 60 | 54 | 73 | 52 | 46 | 63 | |||||||||||||||||||
Expected return on plan assets | (77 | ) | (77 | ) | (85 | ) | (68 | ) | (68 | ) | (75 | ) | |||||||||||||
Recognition of net actuarial loss | 57 | 65 | 98 | 51 | 57 | 87 | |||||||||||||||||||
Recognition of prior service cost | (19 | ) | (27 | ) | (21 | ) | (15 | ) | (23 | ) | (18 | ) | |||||||||||||
Recognition of transition obligation | - | - | 2 | - | - | 2 | |||||||||||||||||||
NET PERIODIC POSTRETIREMENT BENEFIT COST | $ | 40 | $ | 38 | $ | 93 | $ | 35 | $ | 30 | $ | 80 | |||||||||||||
Cost capitalized | (15 | ) | (15 | ) | (32 | ) | (14 | ) | (12 | ) | (28 | ) | |||||||||||||
Reconciliation to rate level | 10 | 58 | 20 | 2 | 50 | 16 | |||||||||||||||||||
Cost charged to operating expenses | $ | 35 | $ | 81 | $ | 81 | $ | 23 | $ | 68 | $ | 68 | |||||||||||||
Schedule of Funded Status | The funded status of the programs at December 31, 2014, 2013 and 2012 were as follows: | ||||||||||||||||||||||||
Con Edison | CECONY | ||||||||||||||||||||||||
(Millions of Dollars) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
CHANGE IN BENEFIT OBLIGATION | |||||||||||||||||||||||||
Benefit obligation at beginning of year | $ | 1,395 | $ | 1,454 | $ | 1,756 | $ | 1,198 | $ | 1,238 | $ | 1,511 | |||||||||||||
Service cost | 19 | 23 | 26 | 15 | 18 | 21 | |||||||||||||||||||
Interest cost on accumulated postretirement benefit obligation | 60 | 54 | 73 | 52 | 46 | 63 | |||||||||||||||||||
Amendments | (12 | ) | - | (127 | ) | - | - | (89 | ) | ||||||||||||||||
Net actuarial loss/(gain) | 47 | (42 | ) | (175 | ) | 28 | (20 | ) | (178 | ) | |||||||||||||||
Benefits paid and administrative expenses | (134 | ) | (136 | ) | (146 | ) | (125 | ) | (126 | ) | (134 | ) | |||||||||||||
Participant contributions | 36 | 38 | 37 | 35 | 38 | 36 | |||||||||||||||||||
Medicare prescription subsidy | - | 4 | 10 | - | 4 | 8 | |||||||||||||||||||
BENEFIT OBLIGATION AT END OF YEAR | $ | 1,411 | $ | 1,395 | $ | 1,454 | $ | 1,203 | $ | 1,198 | $ | 1,238 | |||||||||||||
CHANGE IN PLAN ASSETS | |||||||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 1,113 | $ | 1,047 | $ | 947 | $ | 977 | $ | 922 | $ | 840 | |||||||||||||
Actual return on plan assets | 59 | 153 | 124 | 54 | 134 | 109 | |||||||||||||||||||
Employer contributions | 7 | 9 | 83 | 7 | 9 | 71 | |||||||||||||||||||
EGWP payments | 12 | 8 | - | 11 | 7 | - | |||||||||||||||||||
Participant contributions | 36 | 38 | 37 | 35 | 38 | 36 | |||||||||||||||||||
Benefits paid | (143 | ) | (142 | ) | (144 | ) | (134 | ) | (133 | ) | (134 | ) | |||||||||||||
FAIR VALUE OF PLAN ASSETS AT END OF YEAR | $ | 1,084 | $ | 1,113 | $ | 1,047 | $ | 950 | $ | 977 | $ | 922 | |||||||||||||
FUNDED STATUS | $ | (327 | ) | $ | (282 | ) | $ | (407 | ) | $ | (253 | ) | $ | (221 | ) | $ | (316 | ) | |||||||
Unrecognized net loss | $ | 78 | $ | 70 | $ | 251 | $ | 45 | $ | 54 | $ | 197 | |||||||||||||
Unrecognized prior service costs | (71 | ) | (78 | ) | (105 | ) | (46 | ) | (61 | ) | (84 | ) | |||||||||||||
Schedule of Actuarial Assumptions | The actuarial assumptions were as follows: | ||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Weighted-average assumptions used to determine benefit obligations at December 31: | |||||||||||||||||||||||||
Discount Rate | |||||||||||||||||||||||||
CECONY | 3.75 | % | 4.5 | % | 3.75 | % | |||||||||||||||||||
O&R | 3.85 | % | 4.75 | % | 4.05 | % | |||||||||||||||||||
Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31: | |||||||||||||||||||||||||
Discount Rate | |||||||||||||||||||||||||
CECONY | 4.5 | % | 3.75 | % | 4.55 | % | |||||||||||||||||||
O&R | 4.75 | % | 4.05 | % | 4.55 | % | |||||||||||||||||||
Expected Return on Plan Assets | 7.75 | % | 7.75 | % | 8.5 | % | |||||||||||||||||||
Schedule of Change of Assumed Health Care Cost Trend Rate | A one-percentage point change in the assumed health care cost trend rate would have the following effects at December 31, 2015: | ||||||||||||||||||||||||
Con Edison | CECONY | ||||||||||||||||||||||||
1-Percentage-Point | |||||||||||||||||||||||||
(Millions of Dollars) | Increase | Decrease | Increase | Decrease | |||||||||||||||||||||
Effect on accumulated other postretirement benefit obligation | $ | (21 | ) | $ | 40 | $ | (43 | ) | $ | 57 | |||||||||||||||
Effect on service cost and interest cost components for 2014 | (2 | ) | 1 | (4 | ) | 3 | |||||||||||||||||||
Schedule of Expected Benefit Payments | Based on current assumptions, the Companies expect to make the following benefit payments over the next ten years, net of receipt of governmental subsidies: | ||||||||||||||||||||||||
(Millions of Dollars) | 2015 | 2016 | 2017 | 2018 | 2019 | 2020-2024 | |||||||||||||||||||
BENEFIT PAYMENTS | |||||||||||||||||||||||||
Con Edison | $ | 99 | $ | 95 | $ | 94 | $ | 92 | $ | 89 | $ | 419 | |||||||||||||
CECONY | 89 | 85 | 84 | 82 | 79 | 364 | |||||||||||||||||||
Schedule of Plan Assets Allocations | The asset allocations for CECONY’s other postretirement benefit plans at the end of 2014, 2013 and 2012, and the target allocation for 2015 are as follows: | ||||||||||||||||||||||||
Target Allocation Range | Plan Assets at | ||||||||||||||||||||||||
December 31 | |||||||||||||||||||||||||
Asset Category | 2015 | 2014 | 2013 | 2012 | |||||||||||||||||||||
Equity Securities | 57% - 73% | 59 | % | 61 | % | 62% | |||||||||||||||||||
Debt Securities | 26% - 44% | 41 | % | 39 | % | 38% | |||||||||||||||||||
Total | 100% | 100 | % | 100 | % | 100% | |||||||||||||||||||
Schedule of Fair Values of Plan Assets | The fair values of the plan assets at December 31, 2014 by asset category as defined by the accounting rules for fair value measurements (see Note P) are as follows: | ||||||||||||||||||||||||
(Millions of Dollars) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Equity(a) | $ | - | $ | 428 | $ | - | $ | 428 | |||||||||||||||||
Other Fixed Income Debt(b) | - | 286 | - | 286 | |||||||||||||||||||||
Cash and Cash Equivalents(c) | - | 11 | - | 11 | |||||||||||||||||||||
Total investments | $ | - | $ | 725 | $ | - | $ | 725 | |||||||||||||||||
Funds for retiree health benefits(d) | 184 | 131 | 43 | 358 | |||||||||||||||||||||
Investments(including funds for retiree health benefits) | $ | 184 | $ | 856 | $ | 43 | $ | 1,083 | |||||||||||||||||
Pending activities(e) | 1 | ||||||||||||||||||||||||
Total fair value of plan net assets | $ | 1,084 | |||||||||||||||||||||||
(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 Barclays Capital Aggregate 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) | 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 plan assets at December 31, 2013 by asset category (see Note P) are as follows: | |||||||||||||||||||||||||
(Millions of Dollars) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Equity(a) | $ | - | $ | 450 | $ | - | $ | 450 | |||||||||||||||||
Other Fixed Income Debt(b) | - | 286 | - | 286 | |||||||||||||||||||||
Cash and Cash Equivalents(c) | - | 7 | - | 7 | |||||||||||||||||||||
Total investments | $ | - | $ | 743 | $ | - | $ | 743 | |||||||||||||||||
Funds for retiree health benefits(d) | 185 | 145 | 42 | 372 | |||||||||||||||||||||
Investments(including funds for retiree health benefits) | $ | 185 | $ | 888 | $ | 42 | $ | 1,115 | |||||||||||||||||
Pending activities(e) | (2 | ) | |||||||||||||||||||||||
Total fair value of plan net assets | $ | 1,113 | |||||||||||||||||||||||
(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 Barclays Capital Aggregate 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) | 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. | ||||||||||||||||||||||||
Reconciliation of Fair Value Balances for Net Assets | The table below provides a reconciliation of the beginning and ending net balances for assets at December 31, 2014 classified as Level 3 in the fair value hierarchy. | ||||||||||||||||||||||||
(Millions of Dollars) | Beginning | Assets Still Held | Assets Sold | Purchases | Transfers | Ending | |||||||||||||||||||
Balance as of | at Reporting Date – | During the | Sales and | In/(Out) of | Balance as of | ||||||||||||||||||||
January 1, 2014 | Unrealized | Year – Realized | Settlements | Level 3 | December 31, | ||||||||||||||||||||
Gains/(Losses) | Gains/(Losses) | 2014 | |||||||||||||||||||||||
Total investments | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||
Funds for retiree health benefits | 42 | 1 | - | - | - | 43 | |||||||||||||||||||
Investments (including funds for retiree health benefits) | $ | 42 | $ | 1 | $ | - | $ | - | $ | - | $ | 43 | |||||||||||||
The table below provides a reconciliation of the beginning and ending net balances for assets at December 31, 2013 classified as Level 3 in the fair value hierarchy. | |||||||||||||||||||||||||
(Millions of Dollars) | Beginning | Assets Still Held | Assets Sold | Purchases | Transfers | Ending | |||||||||||||||||||
Balance as of | at Reporting Date – | During the | Sales and | In/(Out) of | Balance as of | ||||||||||||||||||||
January 1, 2013 | Unrealized | Year – Realized | Settlements | Level 3 | December 31, | ||||||||||||||||||||
Gains/(Losses) | Gains/(Losses) | 2013 | |||||||||||||||||||||||
Total investments | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||
Funds for retiree health benefits | 31 | 3 | - | 8 | - | 42 | |||||||||||||||||||
Investments (including funds for retiree health benefits) | $ | 31 | $ | 3 | $ | - | $ | 8 | $ | - | $ | 42 |
Environmental_Matters_Tables
Environmental Matters (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Environmental Remediation Obligations [Abstract] | |||||||||||||||||
Accrued Liabilities and Regulatory Assets | The accrued liabilities and regulatory assets related to Superfund Sites at December 31, 2014 and 2013 were as follows: | ||||||||||||||||
Con Edison | CECONY | ||||||||||||||||
(Millions of Dollars) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Accrued Liabilities: | |||||||||||||||||
Manufactured gas plant sites | $ | 684 | $ | 665 | $ | 587 | $ | 562 | |||||||||
Other Superfund Sites | 80 | 84 | 79 | 82 | |||||||||||||
Total | $ | 764 | $ | 749 | $ | 666 | $ | 644 | |||||||||
Regulatory assets | $ | 925 | $ | 938 | $ | 820 | $ | 830 | |||||||||
Environmental Remediation Costs | Environmental remediation costs incurred and insurance recoveries received related to Superfund Sites at December 31, 2014 and 2013 were as follows: | ||||||||||||||||
Con Edison | CECONY | ||||||||||||||||
(Millions of Dollars) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Remediation costs incurred | $ | 29 | $ | 41 | $ | 20 | $ | 35 | |||||||||
Insurance recoveries received* | 7 | - | 7 | - | |||||||||||||
* | Reduced amount deferred for recovery from customers | ||||||||||||||||
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 for the Companies at December 31, 2014 and 2013 were as follows: | ||||||||||||||||
Con Edison | CECONY | ||||||||||||||||
(Millions of Dollars) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Accrued liability – asbestos suits | $ | 8 | $ | 8 | $ | 7 | $ | 7 | |||||||||
Regulatory assets – asbestos suits | $ | 8 | $ | 8 | $ | 7 | $ | 7 | |||||||||
Accrued liability – workers’ compensation | $ | 83 | $ | 87 | $ | 78 | $ | 82 | |||||||||
Regulatory assets – workers’ compensation | $ | 8 | $ | 12 | $ | 8 | $ | 12 |
Other_Material_Contingencies_T
Other Material Contingencies (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||
Total Guarantees | A summary, by type and term, of Con Edison’s total guarantees at December 31, 2014 is as follows: | ||||||||||||||||
Guarantee Type | 0 – 3 | 4 – 10 | > 10 | Total | |||||||||||||
years | years | years | |||||||||||||||
(Millions of Dollars) | |||||||||||||||||
NY Transco | $ | 1,361 | $ | - | $ | - | $ | 1,361 | |||||||||
Energy transactions | 774 | 31 | 96 | 901 | |||||||||||||
Renewable electric production projects | 248 | - | 7 | 255 | |||||||||||||
Other | 30 | - | - | 30 | |||||||||||||
Total | $ | 2,413 | $ | 31 | $ | 103 | $ | 2,547 |
Electricity_Purchase_Agreement1
Electricity Purchase Agreements (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Regulated Operations [Abstract] | |||||||||||||||||||||||||
Summary of Significant Terms of Electricity Purchase Agreements | At December 31, 2014, the significant terms of the electricity purchase agreements were as follows: | ||||||||||||||||||||||||
Facility | Equity Owner | Plant | Contracted | Contract | Contract | ||||||||||||||||||||
Output | Output | Start | Term | ||||||||||||||||||||||
(MW) | (MW) | Date | (Years) | ||||||||||||||||||||||
Brooklyn Navy Yard | Brooklyn Navy Yard Cogeneration Partners, LP | 322 | 291 | November 1996 | 40 | ||||||||||||||||||||
Linden Cogeneration | Cogen Technologies Linden Venture, LP | 1,035 | 607 | May-92 | 25 | ||||||||||||||||||||
Indeck Corinth | Indeck Energy Services of Corinth, Inc. | 147 | 131 | Jul-95 | 20 | ||||||||||||||||||||
Indian Point | Entergy Nuclear Power Marketing, LLC | 2,311 | 500 | August 2001 | 16 | ||||||||||||||||||||
Astoria Energy | Astoria Energy, LLC | 640 | 500 | May-06 | 10 | ||||||||||||||||||||
Summary of Estimated Capacity and Other Fixed Payments | The future capacity and other fixed payments under the contracts are estimated to be as follows: | ||||||||||||||||||||||||
(Millions of | 2015 | 2016 | 2017 | 2018 | 2019 | All Years | |||||||||||||||||||
Dollars) | Thereafter | ||||||||||||||||||||||||
CECONY | $ | 252 | $ | 186 | $ | 135 | $ | 62 | $ | 53 | $ | 820 | |||||||||||||
Summary of Capacity, Energy and Other Fixed Payments | The company’s payments under the agreements for capacity, energy and other fixed payments in 2014, 2013 and 2012 were as follows: | ||||||||||||||||||||||||
For the Years Ended | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
(Millions of Dollars) | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Brooklyn Navy Yard | $ | 133 | $ | 118 | $ | 93 | |||||||||||||||||||
Linden Cogeneration | 381 | 346 | 297 | ||||||||||||||||||||||
Indeck Corinth | 80 | 79 | 66 | ||||||||||||||||||||||
Indian Point | 247 | 220 | 204 | ||||||||||||||||||||||
Astoria Energy | 230 | 183 | 181 | ||||||||||||||||||||||
Selkirk* | 144 | 215 | 196 | ||||||||||||||||||||||
Independence* | 97 | 121 | 127 | ||||||||||||||||||||||
Total | $ | 1,312 | $ | 1,282 | $ | 1,164 | |||||||||||||||||||
* | Contract term ended in 2014 |
Leases_Tables
Leases (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Leases [Abstract] | |||||||||||||||||
Schedule of Capital Leases | The following assets under capital leases are included in the Companies’ consolidated balance sheets at December 31, 2014 and 2013: | ||||||||||||||||
Con Edison | CECONY | ||||||||||||||||
(Millions of Dollars) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
UTILITY PLANT | |||||||||||||||||
Common | $ | 3 | $ | 3 | $ | 1 | $ | 2 | |||||||||
Future Minimum Lease Commitments | The future minimum lease commitments for the above assets are as follows: | ||||||||||||||||
(Millions of Dollars) | Con Edison | CECONY | |||||||||||||||
2015 | $ | 1 | $ | 1 | |||||||||||||
2016 | 1 | 1 | |||||||||||||||
2017 | - | - | |||||||||||||||
2018 | - | - | |||||||||||||||
2019 | - | - | |||||||||||||||
All years thereafter | - | - | |||||||||||||||
Total | 2 | 2 | |||||||||||||||
Less: amount representing interest | 1 | 1 | |||||||||||||||
Present value of net minimum lease payment | $ | 1 | $ | 1 | |||||||||||||
Future Minimum Rental Payments for Operating Leases | The future minimum lease commitments under the Companies’ non-cancelable operating lease agreements are as follows: | ||||||||||||||||
(Millions of Dollars) | Con Edison | CECONY | |||||||||||||||
2015 | $ | 18 | $ | 14 | |||||||||||||
2016 | 17 | 13 | |||||||||||||||
2017 | 16 | 12 | |||||||||||||||
2018 | 16 | 12 | |||||||||||||||
2019 | 14 | 10 | |||||||||||||||
All years thereafter | 72 | 51 | |||||||||||||||
Total | $ | 153 | $ | 112 | |||||||||||||
Schedule of Leveraged Lease Transactions Effect on Consolidated Income Statement | The effect on Con Edison’s consolidated income statement for the twelve months ended as of December 31, 2014 and 2013 was as follows: | ||||||||||||||||
For the Years Ended | |||||||||||||||||
December 31, | |||||||||||||||||
(Millions of Dollars) | 2014 | 2013 | |||||||||||||||
Increase/(decrease) to non-utility operating revenues | $ | - | $ | (27 | ) | ||||||||||||
(Increase)/decrease to other interest expense | 13 | (131 | ) | ||||||||||||||
Income tax benefit/(expense) | -14 | 63 | |||||||||||||||
Total increase/(decrease) in net income | ($1) | ($95) |
Income_Tax_Tables
Income Tax (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||
Schedule of Components of Income Tax | The components of income tax are as follows: | ||||||||||||||||||||||||
Con Edison | CECONY | ||||||||||||||||||||||||
(Millions of Dollars) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
State | |||||||||||||||||||||||||
Current | $ | 59 | $ | 151 | $ | 29 | $ | 66 | $ | 111 | $ | 53 | |||||||||||||
Deferred | 61 | (70 | ) | 97 | 65 | (14 | ) | 53 | |||||||||||||||||
Federal | |||||||||||||||||||||||||
Current | (9 | ) | 285 | (13 | ) | 158 | 187 | 110 | |||||||||||||||||
Deferred | 463 | 115 | 493 | 271 | 241 | 318 | |||||||||||||||||||
Amortization of investment tax credits | (6 | ) | (5 | ) | (6 | ) | (5 | ) | (5 | ) | (5 | ) | |||||||||||||
Total income tax expense | $ | 568 | $ | 476 | $ | 600 | $ | 555 | $ | 520 | $ | 529 | |||||||||||||
Schedule of Differences on Deferred Tax Assets and Liabilities | The tax effects of temporary differences, which gave rise to deferred tax assets and liabilities, are as follows: | ||||||||||||||||||||||||
Con Edison | CECONY | ||||||||||||||||||||||||
(Millions of Dollars) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Deferred tax liabilities: | |||||||||||||||||||||||||
Property basis differences | $ | 7,510 | $ | 7,012 | $ | 6,938 | $ | 6,424 | |||||||||||||||||
Unrecognized pension and other postretirement costs | 1,968 | 1,109 | 1,872 | 1,060 | |||||||||||||||||||||
Regulatory asset – future income tax | 910 | 871 | 863 | 825 | |||||||||||||||||||||
Environmental remediation costs | 376 | 381 | 333 | 337 | |||||||||||||||||||||
Deferred storm costs | 129 | 179 | 91 | 136 | |||||||||||||||||||||
Equity investments | 168 | 21 | - | - | |||||||||||||||||||||
Other regulatory assets | 347 | 402 | 300 | 364 | |||||||||||||||||||||
Unamortized investment tax credits | 126 | 43 | 37 | 42 | |||||||||||||||||||||
Total deferred tax liabilities and investment tax credits | 11,534 | 10,018 | 10,434 | 9,188 | |||||||||||||||||||||
Deferred tax assets: | |||||||||||||||||||||||||
Accrued pension and other postretirement costs | 1,306 | 458 | 1,155 | 364 | |||||||||||||||||||||
Regulatory liabilities | 615 | 604 | 574 | 569 | |||||||||||||||||||||
Superfund and other environmental costs | 306 | 301 | 264 | 256 | |||||||||||||||||||||
Asset retirement obligations | 77 | 58 | 75 | 58 | |||||||||||||||||||||
Loss carryforwards | 21 | 12 | - | - | |||||||||||||||||||||
Loss carryforwards, valuation reserve | (11 | ) | (12 | ) | - | - | |||||||||||||||||||
Other | 272 | 253 | 203 | 209 | |||||||||||||||||||||
Total deferred tax assets | 2,586 | 1,674 | 2,271 | 1,456 | |||||||||||||||||||||
Net deferred tax liabilities and investment tax credits | $ | 8,948 | $ | 8,344 | $ | 8,163 | $ | 7,732 | |||||||||||||||||
Deferred income taxes and investment tax credits – noncurrent | $ | 9,076 | $ | 8,466 | $ | 8,257 | $ | 7,832 | |||||||||||||||||
Deferred tax assets – current | (128 | ) | (122 | ) | (94 | ) | (100 | ) | |||||||||||||||||
Net deferred tax liabilities and investment tax credits | $ | 8,948 | $ | 8,344 | $ | 8,163 | $ | 7,732 | |||||||||||||||||
Schedule of Income Tax Reconciliation | 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) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
STATUTORY TAX RATE | |||||||||||||||||||||||||
Federal | 35 | % | 35 | % | 35 | % | 35 | % | 35 | % | 35 | % | |||||||||||||
Changes in computed taxes resulting from: | |||||||||||||||||||||||||
State income tax | 5 | 4 | 4 | 5 | 5 | 4 | |||||||||||||||||||
Cost of removal | (5 | ) | (5 | ) | (4 | ) | (5 | ) | (5 | ) | (4 | ) | |||||||||||||
Manufacturing deduction | - | (1 | ) | - | - | - | - | ||||||||||||||||||
Other | (1 | ) | (2 | ) | (1 | ) | (1 | ) | (1 | ) | (1 | ) | |||||||||||||
Effective tax rate | 34 | % | 31 | % | 34 | % | 34 | % | 34 | % | 34 | % | |||||||||||||
Summary of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amounts of unrecognized tax benefits for Con Edison and CECONY follows: | ||||||||||||||||||||||||
Con Edison | CECONY | ||||||||||||||||||||||||
(Millions of Dollars) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Balance at January 1, | $ | 9 | $ | 86 | $ | 130 | $ | - | $ | 74 | $ | 114 | |||||||||||||
Additions based on tax positions related to the current year | - | 5 | 12 | - | - | 11 | |||||||||||||||||||
Additions based on tax positions of prior years | 27 | 253 | - | 2 | - | - | |||||||||||||||||||
Reductions for tax positions of prior years | (2 | ) | (86 | ) | (57 | ) | - | (74 | ) | (52 | ) | ||||||||||||||
Settlements | - | (249 | ) | 1 | - | - | 1 | ||||||||||||||||||
Balance at December 31, | $ | 34 | $ | 9 | $ | 86 | $ | 2 | $ | - | $ | 74 |
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Stock-Based Compensation Expense | The following table summarizes stock-based compensation expense recognized by the Companies in the years ended December 31, 2014, 2013 and 2012: | ||||||||||||||||||||||||
Con Edison | CECONY | ||||||||||||||||||||||||
(Millions of Dollars) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Performance-based restricted stock | $ | 22 | $ | 20 | $ | 14 | $ | 19 | $ | 18 | $ | 13 | |||||||||||||
Time-based restricted stock | 2 | 2 | 1 | 2 | 2 | 1 | |||||||||||||||||||
Non-employee director deferred stock compensation | 2 | 2 | 1 | 2 | 2 | 1 | |||||||||||||||||||
Stock purchase plan | 3 | 3 | 3 | 3 | 3 | 3 | |||||||||||||||||||
Total | $ | 29 | $ | 27 | $ | 19 | $ | 26 | $ | 25 | $ | 18 | |||||||||||||
Income tax benefit | $ | 12 | $ | 11 | $ | 8 | $ | 10 | $ | 10 | $ | 7 | |||||||||||||
Summary of Status of Stock Options | A summary of changes in the status of stock options as of December 31, 2014 is as follows: | ||||||||||||||||||||||||
Con Edison | CECONY | ||||||||||||||||||||||||
Shares | Weighted | Shares | Weighted | ||||||||||||||||||||||
Average | Average | ||||||||||||||||||||||||
Exercise | Exercise | ||||||||||||||||||||||||
Price | Price | ||||||||||||||||||||||||
Outstanding at 12/31/13 | 481,310 | $ | 43.38 | 381,010 | $ | 43.34 | |||||||||||||||||||
Exercised | (251,460 | ) | 43.75 | (189,660 | ) | 43.68 | |||||||||||||||||||
Forfeited | - | - | - | - | |||||||||||||||||||||
Outstanding at 12/31/14 | 229,850 | $ | 42.99 | 191,350 | $ | 43 | |||||||||||||||||||
Note: The weighted average remaining contractual life is one year for all outstanding options as of 12/31/14. | |||||||||||||||||||||||||
Summary of Stock Options | The following table summarizes information about stock options for the years ended December 31, 2014 and 2013: | ||||||||||||||||||||||||
Con Edison | CECONY | ||||||||||||||||||||||||
(Millions of Dollars) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Aggregate intrinsic value* | |||||||||||||||||||||||||
Options outstanding | $ | 5 | $ | 6 | $ | 4 | $ | 5 | |||||||||||||||||
Options exercised | 4 | 2 | 3 | 2 | |||||||||||||||||||||
Cash received by Con Edison for | 11 | 5 | 8 | 4 | |||||||||||||||||||||
payment of exercise price | |||||||||||||||||||||||||
* | Aggregate intrinsic value represents the changes in the fair value of all outstanding options from their grant dates to December 31 of the years presented above. | ||||||||||||||||||||||||
Assumptions Used to Calculate Fair Value | The following table illustrates the assumptions used to calculate the fair value of the awards: | ||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Risk-free interest rate(a) | 0.23% - 3.07% | 0.13% - 5.17% | 0.15% - 3.39% | ||||||||||||||||||||||
Expected term(b) | 3 years | 3 years | 3 years | ||||||||||||||||||||||
Expected share price volatility(c) | 13.14% | 13.52% | 15.27% | ||||||||||||||||||||||
(a) | The risk-free rate is based on the U.S. Treasury zero-coupon yield curve on the date of grant. | ||||||||||||||||||||||||
(b) | The expected term of the Performance RSUs equals the vesting period. The Companies do not expect significant forfeitures to occur. | ||||||||||||||||||||||||
(c) | The expected volatility is calculated using daily closing stock prices over a period of three years, which approximates the expected term of the awards. | ||||||||||||||||||||||||
Summary of Changes in Status of Time-Based Awards | A summary of changes in the status of time-based awards during the year ended December 31, 2014 is as follows: | ||||||||||||||||||||||||
Con Edison | CECONY | ||||||||||||||||||||||||
Units | Weighted | Units | Weighted | ||||||||||||||||||||||
Average | Average | ||||||||||||||||||||||||
Grant | Grant | ||||||||||||||||||||||||
Date Fair | Date Fair | ||||||||||||||||||||||||
Value | Value | ||||||||||||||||||||||||
Non-vested at 12/31/13 | 66,580 | $ | 56.92 | 63,030 | $ | 56.93 | |||||||||||||||||||
Granted | 22,990 | 53.65 | 21,790 | 53.65 | |||||||||||||||||||||
Vested | (20,900 | ) | 50.74 | (19,800 | ) | 50.75 | |||||||||||||||||||
Forfeited | (3,247 | ) | 58.06 | (2,847 | ) | 58.27 | |||||||||||||||||||
Non-vested at 12/31/14 | 65,423 | $ | 57.65 | 62,173 | $ | 57.64 | |||||||||||||||||||
Tsr and non-tsr portions. | |||||||||||||||||||||||||
Summary of Changes in Status of Performance RSUs' | A summary of changes in the status of the Performance RSUs’ TSR and non-TSR portions during the year ended December 31, 2014 is as follows: | ||||||||||||||||||||||||
Con Edison | CECONY | ||||||||||||||||||||||||
Units | Weighted | Units | Weighted | ||||||||||||||||||||||
Average | Average | ||||||||||||||||||||||||
Grant Date | Grant Date | ||||||||||||||||||||||||
Fair Value(a) | Fair Value(a) | ||||||||||||||||||||||||
TSR | Non-TSR | TSR | Non-TSR | ||||||||||||||||||||||
Portion(b) | Portion(c) | Portion(b) | Portion(c) | ||||||||||||||||||||||
Non-vested at 12/31/13 | 1,121,598 | $ | 49.32 | $ | 55.31 | 897,052 | $ | 49.38 | $ | 55.42 | |||||||||||||||
Granted | 428,310 | 25.34 | 53.65 | 342,001 | 25.86 | 53.71 | |||||||||||||||||||
Vested | (411,704 | ) | 43.84 | 50.05 | (323,483 | ) | 43.93 | 50.08 | |||||||||||||||||
Forfeited | (37,597 | ) | 40.9 | 55.97 | (35,047 | ) | 40.84 | 55.95 | |||||||||||||||||
Non-vested at 12/31/14 | 1,100,607 | $ | 42.33 | $ | 56.61 | 880,523 | $ | 42.58 | $ | 56.7 | |||||||||||||||
(a) | The TSR and non-TSR Portions each account for 50 percent of the awards’ value. | ||||||||||||||||||||||||
(b) | Fair value is determined using the Monte Carlo simulation described above. Weighted average grant date fair value does not reflect any accrual or payment of dividends prior to vesting. | ||||||||||||||||||||||||
(c) | Fair value is determined using the market price of one share of Con Edison common stock on the grant date. The market price has not been discounted to reflect that dividends do not accrue and are not payable on Performance RSUs until vesting. |
Financial_Information_by_Busin1
Financial Information by Business Segment (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||
Financial Data for Business Segments | The financial data for the business segments are as follows: | ||||||||||||||||||||||||||||||||
As of and for the Year Ended | Operating | Inter- | Depreciation | Operating | Interest | Income | Total | Construction | |||||||||||||||||||||||||
December 31, 2014 | revenues | segment | and | income | charges | taxes on | assets(b) | expenditures | |||||||||||||||||||||||||
(Millions of Dollars) | revenues | amortization | operating | ||||||||||||||||||||||||||||||
income(a) | |||||||||||||||||||||||||||||||||
CECONY | |||||||||||||||||||||||||||||||||
Electric | $ | 8,437 | $ | 16 | $ | 781 | $ | 1,712 | $ | 412 | $ | 425 | $ | 30,421 | $ | 1,500 | |||||||||||||||||
Gas | 1,721 | 6 | 132 | 314 | 89 | 88 | 6,530 | 549 | |||||||||||||||||||||||||
Steam | 628 | 84 | 78 | 113 | 36 | 49 | 2,686 | 83 | |||||||||||||||||||||||||
Consolidation adjustments | - | (106 | ) | - | - | - | - | - | - | ||||||||||||||||||||||||
Total CECONY | $ | 10,786 | $ | - | $ | 991 | $ | 2,139 | $ | 537 | $ | 562 | $ | 39,637 | $ | 2,132 | |||||||||||||||||
O&R | |||||||||||||||||||||||||||||||||
Electric | $ | 680 | $ | - | $ | 46 | $ | 103 | $ | 24 | $ | 29 | $ | 2,042 | $ | 105 | |||||||||||||||||
Gas | 212 | - | 15 | 25 | 10 | 6 | 794 | 37 | |||||||||||||||||||||||||
Other(b) | - | - | - | - | 1 | - | 1 | - | |||||||||||||||||||||||||
Total O&R | $ | 892 | $ | - | $ | 61 | $ | 128 | $ | 35 | $ | 35 | $ | 2,837 | $ | 142 | |||||||||||||||||
Competitive energy businesses | $ | 1,244 | $ | (10 | ) | $ | 19 | $ | (60 | ) | $ | (8 | ) | $ | (8 | ) | $ | 1,026 | $ | 447 | |||||||||||||
Other(c) | (3 | ) | 10 | - | 2 | 27 | - | 808 | - | ||||||||||||||||||||||||
Total Con Edison | $ | 12,919 | $ | - | $ | 1,071 | $ | 2,209 | $ | 591 | $ | 589 | $ | 44,308 | $ | 2,721 | |||||||||||||||||
As of and for the Year Ended | Operating | Inter- | Depreciation | Operating | Interest | Income | Total | Construction | |||||||||||||||||||||||||
December 31, 2013 | revenues | segment | and | income | charges | taxes on | assets(b) | expenditures | |||||||||||||||||||||||||
(Millions of Dollars) | revenues | amortization | operating | ||||||||||||||||||||||||||||||
income(a) | |||||||||||||||||||||||||||||||||
CECONY | |||||||||||||||||||||||||||||||||
Electric | $ | 8,131 | $ | 16 | $ | 749 | $ | 1,595 | $ | 402 | $ | 380 | $ | 27,673 | $ | 1,471 | |||||||||||||||||
Gas | 1,616 | 5 | 130 | 362 | 83 | 112 | 6,008 | 536 | |||||||||||||||||||||||||
Steam | 683 | 82 | 67 | 103 | 36 | 39 | 2,577 | 128 | |||||||||||||||||||||||||
Consolidation adjustments | - | (103 | ) | - | - | - | - | - | - | ||||||||||||||||||||||||
Total CECONY | $ | 10,430 | $ | - | $ | 946 | $ | 2,060 | $ | 521 | $ | 531 | $ | 36,258 | $ | 2,135 | |||||||||||||||||
O&R | |||||||||||||||||||||||||||||||||
Electric | $ | 628 | $ | - | $ | 41 | $ | 87 | $ | 25 | $ | 13 | $ | 1,898 | $ | 98 | |||||||||||||||||
Gas | 205 | - | 15 | 33 | 11 | 7 | 645 | 37 | |||||||||||||||||||||||||
Other(b) | - | - | - | - | 1 | - | 2 | - | |||||||||||||||||||||||||
Total O&R | $ | 833 | $ | - | $ | 56 | $ | 120 | $ | 37 | $ | 20 | $ | 2,545 | $ | 135 | |||||||||||||||||
Competitive energy businesses | $ | 1,096 | $ | 5 | $ | 23 | $ | 63 | $ | 135 | $ | (41 | ) | $ | 1,314 | $ | 378 | ||||||||||||||||
Other(c) | (5 | ) | (5 | ) | (1 | ) | 1 | 26 | (6 | ) | 530 | - | |||||||||||||||||||||
Total Con Edison | $ | 12,354 | $ | - | $ | 1,024 | $ | 2,244 | $ | 719 | $ | 504 | $ | 40,647 | $ | 2,648 | |||||||||||||||||
As of and for the Year Ended | Operating | Inter- | Depreciation | Operating | Interest | Income | Total | Construction | |||||||||||||||||||||||||
December 31, 2012 | revenues | segment | and | income | charges | taxes on | assets(b) | expenditures | |||||||||||||||||||||||||
(Millions of Dollars) | revenues | amortization | operating | ||||||||||||||||||||||||||||||
income(a) | |||||||||||||||||||||||||||||||||
CECONY | |||||||||||||||||||||||||||||||||
Electric | $ | 8,176 | $ | 15 | $ | 710 | $ | 1,693 | $ | 423 | $ | 393 | $ | 28,339 | $ | 1,375 | |||||||||||||||||
Gas | 1,415 | 5 | 120 | 346 | 82 | 99 | 5,925 | 426 | |||||||||||||||||||||||||
Steam | 596 | 77 | 64 | 54 | 40 | 22 | 2,621 | 108 | |||||||||||||||||||||||||
Consolidation adjustments | - | (97 | ) | - | - | - | - | - | - | ||||||||||||||||||||||||
Total CECONY | $ | 10,187 | $ | - | $ | 894 | $ | 2,093 | $ | 545 | $ | 514 | $ | 36,885 | $ | 1,909 | |||||||||||||||||
O&R | |||||||||||||||||||||||||||||||||
Electric | $ | 592 | $ | - | $ | 38 | $ | 83 | $ | 19 | $ | 17 | $ | 1,960 | $ | 98 | |||||||||||||||||
Gas | 203 | - | 15 | 40 | 10 | 11 | 706 | 39 | |||||||||||||||||||||||||
Other(b) | - | - | - | - | 2 | - | 5 | - | |||||||||||||||||||||||||
Total O&R | $ | 795 | $ | - | $ | 53 | $ | 123 | $ | 31 | $ | 28 | $ | 2,671 | $ | 137 | |||||||||||||||||
Competitive energy businesses | $ | 1,213 | $ | 8 | $ | 8 | $ | 125 | $ | 1 | $ | 52 | $ | 1,061 | $ | 492 | |||||||||||||||||
Other(c) | (7 | ) | (8 | ) | - | (2 | ) | 27 | - | 592 | - | ||||||||||||||||||||||
Total Con Edison | $ | 12,188 | $ | - | $ | 955 | $ | 2,339 | $ | 604 | $ | 594 | $ | 41,209 | $ | 2,538 | |||||||||||||||||
(a) | For Con Edison, income taxes on non-operating income were $(21), $(28) and $6 million in 2014, 2013 and 2012, respectively. For CECONY, income taxes on non-operating income were $(7), $(11) and $15 million in 2014, 2013 and 2012, respectively. | ||||||||||||||||||||||||||||||||
(b) | Includes amounts related to the RECO securitization. | ||||||||||||||||||||||||||||||||
(c) | Parent company and consolidation adjustments. Other does not represent a business segment. |
Derivative_Instruments_and_Hed1
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||
Fair Values of Commodity Derivatives Including Offsetting of Assets and Liabilities | The fair values of the Companies’ commodity derivatives including the offsetting of assets and liabilities on the consolidated balance sheet at December 31, 2014 and 2013 were: | ||||||||||||||||||||||||
(Millions of Dollars) | 2014 | 2013 | |||||||||||||||||||||||
Balance Sheet Location | Gross | Gross | Net Amounts | Gross | Gross | Net Amounts | |||||||||||||||||||
Amounts of | Amounts | of Assets/ | Amounts of | Amounts | of Assets/ | ||||||||||||||||||||
Recognized | Offset | (Liabilities)(a) | Recognized | Offset | (Liabilities)(a) | ||||||||||||||||||||
Assets/ | Assets/ | ||||||||||||||||||||||||
(Liabilities) | (Liabilities) | ||||||||||||||||||||||||
Con Edison | |||||||||||||||||||||||||
Fair value of derivative assets | |||||||||||||||||||||||||
Current | $ | 111 | $ | (67 | ) | $ | 44 | (b) | $ | 134 | $ | (77 | ) | $ | 57 | (b) | |||||||||
Non-current | 34 | (23 | ) | 11 | 32 | (24 | ) | 8 | |||||||||||||||||
Total fair value of derivative assets | $ | 145 | $ | (90 | ) | $ | 55 | $ | 166 | $ | (101 | ) | $ | 65 | |||||||||||
Fair value of derivative liabilities | |||||||||||||||||||||||||
Current | $ | (242 | ) | $ | 139 | $ | (103 | ) | $ | (82 | ) | $ | 72 | $ | (10 | ) | |||||||||
Non-current | (66 | ) | 91 | 25 | (31 | ) | 26 | (5 | ) | ||||||||||||||||
Total fair value of derivative liabilities | $ | (308 | ) | $ | 230 | $ | (78 | ) | $ | (113 | ) | $ | 98 | $ | (15 | ) | |||||||||
Net fair value derivative assets/(liabilities) | $ | (163 | ) | $ | 140 | $ | (23 | )(b) | $ | 53 | $ | (3 | ) | $ | 50 | (b) | |||||||||
CECONY | |||||||||||||||||||||||||
Fair value of derivative assets | |||||||||||||||||||||||||
Current | $ | 26 | $ | (15 | ) | $ | 11 | (b) | $ | 27 | $ | (19 | ) | $ | 8 | (b) | |||||||||
Non-current | 22 | (20 | ) | 2 | 14 | (13 | ) | 1 | |||||||||||||||||
Total fair value of derivative assets | $ | 48 | $ | (35 | ) | $ | 13 | $ | 41 | $ | (32 | ) | $ | 9 | |||||||||||
Fair value of derivative liabilities | |||||||||||||||||||||||||
Current | $ | (96 | ) | $ | 48 | $ | (48 | ) | $ | (32 | ) | $ | 21 | $ | (11 | ) | |||||||||
Non-current liabilities | (42 | ) | 32 | (10 | ) | (19 | ) | 16 | (3 | ) | |||||||||||||||
Total fair value of derivative liabilities | $ | (138 | ) | $ | 80 | $ | (58 | ) | $ | (51 | ) | $ | 37 | $ | (14 | ) | |||||||||
Net fair value derivative assets/(liabilities) | $ | (90 | ) | $ | 45 | $ | (45 | )(b) | $ | (10 | ) | $ | 5 | $ | (5 | )(b) | |||||||||
(a) | Derivative instruments and collateral were set off on the consolidated balance sheet as applicable under the accounting rules. The Companies enter into master agreements for their commodity derivatives. These agreements typically provide setoff in the event of contract termination. In such case, generally the non-defaulting party’s payable will be set-off by the defaulting party’s payable. The non-defaulting party will customarily notify the defaulting party within a specific time period and come to an agreement on the early termination amount. | ||||||||||||||||||||||||
(b) | At December 31, 2014 and 2013, margin deposits for Con Edison ($27 million and $17 million, respectively) and CECONY ($25 million and $16 million, respectively) were classified as derivative assets in the balance sheet, but not included in the table. Margin is collateral, typically cash, that the holder of a derivative instrument is required to deposit in order to transact on an exchange and to cover its potential losses with its broker or the exchange. | ||||||||||||||||||||||||
Realized and Unrealized Gains or Losses on Commodity Derivatives | The following table presents the realized and unrealized gains or losses on commodity derivatives that have been deferred or recognized in earnings for the years ended December 31, 2014 and 2013: | ||||||||||||||||||||||||
Con Edison | CECONY | ||||||||||||||||||||||||
(Millions of Dollars) | Balance Sheet Location | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||
Pre-tax gains/(losses) deferred in accordance with accounting rules for regulated operations: | |||||||||||||||||||||||||
Current | Deferred derivative gains | $ | (10 | ) | $ | 14 | $ | (7 | ) | $ | 11 | ||||||||||||||
Long-term | Deferred derivative gains | 1 | - | 1 | - | ||||||||||||||||||||
Total deferred gains/(losses) | $ | (9 | ) | $ | 14 | $ | (6 | ) | $ | 11 | |||||||||||||||
Current | Deferred derivative losses | $ | (75 | ) | $ | 47 | $ | (70 | ) | $ | 38 | ||||||||||||||
Current | Recoverable energy costs | 36 | (39 | ) | 26 | (37 | ) | ||||||||||||||||||
Long-term | Deferred derivative losses | (17 | ) | 27 | (17 | ) | 13 | ||||||||||||||||||
Total deferred gains/(losses) | $ | (56 | ) | $ | 35 | $ | (61 | ) | $ | 14 | |||||||||||||||
Net deferred gains/(losses) | $ | (65 | ) | $ | 49 | $ | (67 | ) | $ | 25 | |||||||||||||||
Income Statement Location | |||||||||||||||||||||||||
Pre-tax gain/(loss) recognized in income | |||||||||||||||||||||||||
Purchased power expense | $ | (37 | )(a) | $ | 90 | (a) | $ | - | $ | - | |||||||||||||||
Gas purchased for resale | (115 | ) | (27 | ) | - | - | |||||||||||||||||||
Non-utility revenue | 29 | (a) | 9 | (a) | - | - | |||||||||||||||||||
Total pre-tax gain/(loss) recognized in income | $ | (123 | ) | $ | 72 | $ | - | $ | - | ||||||||||||||||
(a) | Con Edison recorded unrealized gains and losses in non-utility operating revenue ($4 million gain and an immaterial gain) and purchased power expense ($132 million loss and $74 million gain) for the years ended December 31, 2014 and 2013, respectively. | ||||||||||||||||||||||||
Hedged Volume of Derivative Transactions | The following table presents the hedged volume of Con Edison’s and CECONY’s derivative transactions at December 31, 2014: | ||||||||||||||||||||||||
Electric Energy (MWHs)(a)(b) | Capacity (MWs)(a) | Natural Gas (Dt)(a)(b) | |||||||||||||||||||||||
Con Edison | 17,792,555 | 7,706 | 66,793,011 | ||||||||||||||||||||||
CECONY | 5,543,250 | 2,100 | 62,065,000 | ||||||||||||||||||||||
(a) | Volumes are reported net of long and short positions, except natural gas collars where the volumes of long positions are reported. | ||||||||||||||||||||||||
(b) | Excludes electric congestion and gas basis swap contracts which are associated with electric and gas contracts and hedged volumes. | ||||||||||||||||||||||||
Aggregate Fair Value of Companies' Derivative Instruments with Credit-Risk-Related Contingent Features | The following table presents the aggregate fair value of the Companies’ derivative instruments with credit-risk-related contingent features that are in a net liability position, the collateral posted for such positions and the additional collateral that would have been required to be posted had the lowest applicable credit rating been reduced one level and to below investment grade at December 31, 2014: | ||||||||||||||||||||||||
(Millions of Dollars) | Con Edison(a) | CECONY(a) | |||||||||||||||||||||||
Aggregate fair value – net liabilities | $ | 78 | $ | 58 | |||||||||||||||||||||
Collateral posted | $ | 1 | $ | - | |||||||||||||||||||||
Additional collateral(b) (downgrade one level from current ratings) | $ | 6 | $ | 2 | |||||||||||||||||||||
Additional collateral(b) (downgrade to below investment grade from current ratings) | $ | 105 | (c) | $ | 63 | (c) | |||||||||||||||||||
(a) | Non-derivative transactions for the purchase and sale of electricity and gas and qualifying derivative instruments, which have been designated as normal purchases or normal sales, are excluded from the table. These transactions primarily include purchases of electricity from independent system operators. In the event the Utilities and Con Edison’s competitive energy businesses were no longer extended unsecured credit for such purchases, the Companies would be required to post collateral, which at December 31, 2014, would have amounted to an estimated $16 million for Con Edison, including $3 million for CECONY. For certain other such non-derivative transactions, the Companies could be required to post collateral under certain circumstances, including in the event counterparties had reasonable grounds for insecurity. | ||||||||||||||||||||||||
(b) | The Companies measure the collateral requirements by taking into consideration the fair value amounts of derivative instruments that contain credit-risk-related contingent features that are in a net liabilities position plus amounts owed to counterparties for settled transactions and amounts required by counterparties for minimum financial security. The fair value amounts represent unrealized losses, net of any unrealized gains where the Companies have a legally enforceable right of setoff. | ||||||||||||||||||||||||
(c) | Derivative instruments that are net assets have been excluded from the table. At December 31, 2014, if Con Edison had been downgraded to below investment grade, it would have been required to post additional collateral for such derivative instruments of $15 million. |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis for the years ended December 31, 2014 and 2013 are summarized below. | ||||||||||||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||||||||||||
(Millions of Dollars) | Level 1 | Level 2 | Level 3 | Netting | Total | Level 1 | Level 2 | Level 3 | Netting | Total | |||||||||||||||||||||||||||||||
Adjustment(e) | Adjustment(e) | ||||||||||||||||||||||||||||||||||||||||
Con Edison | |||||||||||||||||||||||||||||||||||||||||
Derivative assets: | |||||||||||||||||||||||||||||||||||||||||
Commodity(a)(b)(c) | $ | 3 | $ | 78 | $ | 28 | $ | (27 | ) | $ | 82 | $ | 3 | $ | 130 | $ | 11 | $ | (62 | ) | $ | 82 | |||||||||||||||||||
Other(a)(b)(d) | 163 | 116 | - | - | 279 | 141 | 113 | - | - | 254 | |||||||||||||||||||||||||||||||
Total assets | $ | 166 | $ | 194 | $ | 28 | $ | (27 | ) | $ | 361 | $ | 144 | $ | 243 | $ | 11 | $ | (62 | ) | $ | 336 | |||||||||||||||||||
Derivative liabilities: | |||||||||||||||||||||||||||||||||||||||||
Commodity(a)(b)(c) | $ | 18 | $ | 246 | $ | 8 | $ | (194 | ) | $ | 78 | $ | 5 | $ | 84 | $ | 2 | $ | (76 | ) | $ | 15 | |||||||||||||||||||
Interest rate contract(a)(b) | - | - | - | - | - | - | 2 | - | - | 2 | |||||||||||||||||||||||||||||||
Total liabilities | $ | 18 | $ | 246 | $ | 8 | $ | (194 | ) | $ | 78 | $ | 5 | $ | 86 | $ | 2 | $ | (76 | ) | $ | 17 | |||||||||||||||||||
CECONY | |||||||||||||||||||||||||||||||||||||||||
Derivative assets | |||||||||||||||||||||||||||||||||||||||||
Commodity(a)(b)(c) | $ | 1 | $ | 3 | $ | 13 | $ | 21 | $ | 38 | $ | 3 | $ | 13 | $ | 6 | $ | 3 | $ | 25 | |||||||||||||||||||||
Other(a)(b)(d) | 155 | 106 | - | - | 261 | 134 | 103 | - | - | 237 | |||||||||||||||||||||||||||||||
Total assets | $ | 156 | $ | 109 | $ | 13 | $ | 21 | $ | 299 | $ | 137 | $ | 116 | $ | 6 | $ | 3 | $ | 262 | |||||||||||||||||||||
Derivative liabilities: | |||||||||||||||||||||||||||||||||||||||||
Commodity(a)(b)(c) | $ | 16 | $ | 91 | $ | - | $ | (49 | ) | $ | 58 | $ | 5 | $ | 27 | $ | - | $ | (18 | ) | $ | 14 | |||||||||||||||||||
Total Liabilities | $ | 16 | $ | 91 | $ | - | $ | (49 | ) | $ | 58 | $ | 5 | $ | 27 | $ | - | $ | (18 | ) | $ | 14 | |||||||||||||||||||
(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. There were no transfers between levels 1, 2 and 3 for the years ended December 31, 2014 and 2013. | ||||||||||||||||||||||||||||||||||||||||
(b) | Level 2 assets and liabilities include investments held in the deferred compensation plan and/or non-qualified retirement plans, interest rate swap, exchange-traded contracts where there is insufficient market liquidity to warrant inclusion in Level 1, and certain over-the-counter derivative instruments for electricity 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, 2014 and 2013, 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. | ||||||||||||||||||||||||||||||||||||||||
Schedule of Commodity Derivatives | The risk management group reports to the Companies’ Vice President and Treasurer. | ||||||||||||||||||||||||||||||||||||||||
Fair Value of Level 3 at | Valuation | Unobservable Inputs | Range | ||||||||||||||||||||||||||||||||||||||
December 31, 2014 | Techniques | ||||||||||||||||||||||||||||||||||||||||
(Millions of Dollars) | |||||||||||||||||||||||||||||||||||||||||
Con Edison – Commodity | |||||||||||||||||||||||||||||||||||||||||
Electricity | $ | 1 | Discounted Cash Flow | Forward energy prices(a) | $22.59 - $119.75 per MWH | ||||||||||||||||||||||||||||||||||||
Discounted Cash Flow | Forward capacity prices(a) | $1.00 - $8.80 per kW - month | |||||||||||||||||||||||||||||||||||||||
Natural Gas | 2 | Discounted Cash Flow | Forward gas prices(a) | $(1.64) - $5.00 per Dt | |||||||||||||||||||||||||||||||||||||
Transmission Congestion Contracts / Financial Transmission Rights | 17 | Discounted Cash Flow | Discount to adjust auction prices for inter-zonal forward price curves(b) | 9.6% - 57.9% | |||||||||||||||||||||||||||||||||||||
Discount to adjust auction prices for historical monthly realized settlements(b) | 32.3% - 56.1% | ||||||||||||||||||||||||||||||||||||||||
Inter-zonal forward price curves adjusted for historical zonal losses(b) | $(2.66) - $16.49 | ||||||||||||||||||||||||||||||||||||||||
Total Con Edison—Commodity | $ | 20 | |||||||||||||||||||||||||||||||||||||||
CECONY – Commodity | |||||||||||||||||||||||||||||||||||||||||
Transmission Congestion Contracts | $ | 13 | Discounted Cash Flow | Discount to adjust auction prices for inter-zonal forward price curves(b) | 9.6% - 57.9% | ||||||||||||||||||||||||||||||||||||
Discount to adjust auction prices for historical monthly realized settlements(b) | 32.3% - 56.1% | ||||||||||||||||||||||||||||||||||||||||
(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, 2014 and 2013 and classified as Level 3 in the fair value hierarchy: | ||||||||||||||||||||||||||||||||||||||||
Con Edison | CECONY | ||||||||||||||||||||||||||||||||||||||||
(Millions of Dollars) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||||||||||
Beginning Balance as of January 1, | $ | 9 | $ | (5 | ) | $ | 6 | $ | 10 | ||||||||||||||||||||||||||||||||
Included in Earnings | 30 | 7 | 2 | 7 | |||||||||||||||||||||||||||||||||||||
Included in Regulatory Assets and Liabilities | 7 | 18 | 7 | (1 | ) | ||||||||||||||||||||||||||||||||||||
Purchases | 22 | 17 | 16 | 13 | |||||||||||||||||||||||||||||||||||||
Settlements | (48 | ) | (28 | ) | (18 | ) | (23 | ) | |||||||||||||||||||||||||||||||||
Ending Balance as of December 31, | $ | 20 | $ | 9 | $ | 13 | $ | 6 |
Variable_Interest_Entities_Tab
Variable Interest Entities (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||
Schedule of Sale and Deconsolidation of a Variable Interest Entity | As a result of the sale, Con Edison Development received net proceeds of $108 million and recognized a pre-tax gain on the sale of $45 million ($26 million, net of tax). The following table summarizes the sale and resultant deconsolidation on the transaction date: | ||||||||||||||||||||
(Millions of Dollars) | |||||||||||||||||||||
Proceeds from sale, net of transaction costs of $1 | $ | 108 | |||||||||||||||||||
Non-utility property, less accumulated depreciation | (341 | ) | |||||||||||||||||||
Other assets, including working capital | (31 | ) | |||||||||||||||||||
Long-term debt, including current portion | 217 | ||||||||||||||||||||
Other liabilities | 9 | ||||||||||||||||||||
Gain on sale of solar electric production projects | (45 | ) | |||||||||||||||||||
Equity method investment upon deconsolidation | $ | (83 | ) | ||||||||||||||||||
Schedule of Assets and Liabilities Included in Consolidated Balance Sheet | At December 31, 2014, Con Edison’s consolidated balance sheet includes $58 million in net assets (as detailed in the table below) and the non-controlling interest of the third party of $9 million related to Texas Solar 4. Earnings for the twelve months ended December 31, 2014 were immaterial. | ||||||||||||||||||||
(Millions of Dollars) | |||||||||||||||||||||
Restricted cash | $ | 13 | |||||||||||||||||||
Non-utility property, less accumulated depreciation | 108 | ||||||||||||||||||||
Other assets | 14 | ||||||||||||||||||||
Total assets(a) | $ | 135 | |||||||||||||||||||
Long-term debt due within one year | $ | 66 | |||||||||||||||||||
Other liabilities | 11 | ||||||||||||||||||||
Total liabilities(b) | $ | 77 | |||||||||||||||||||
(a) | The assets of Texas Solar 4 represent assets of a consolidated VIE that can be used only to settle obligations of the consolidated VIE. | ||||||||||||||||||||
(b) | The liabilities of Texas Solar 4 represent liabilities of a consolidated VIE for which creditors do not have recourse to the general credit of the primary beneficiary. | ||||||||||||||||||||
Summary of VIEs | The following table summarizes the VIEs in which Con Edison Development has entered into as of December 31, 2014: | ||||||||||||||||||||
Project Name(a) | Generating | Power Purchase | Year of Initial | Location | Maximum Exposure to | ||||||||||||||||
Capacity | Agreement Term | Investment | Loss (In Millions)(c) | ||||||||||||||||||
Owned | in Years | ||||||||||||||||||||
Pilesgrove | 9 | n/a | (b) | 2010 | New Jersey | $ | 26 | ||||||||||||||
Mesquite Solar 1 | 83 | 20 | 2013 | Arizona | 111 | ||||||||||||||||
Copper Mountain Solar 2 | 75 | 25 | 2013 | Nevada | 80 | ||||||||||||||||
Copper Mountain Solar 3 | 128 | 20 | 2014 | Nevada | 175 | ||||||||||||||||
California Solar | 55 | 25 | 2012 | California | 81 | ||||||||||||||||
Texas Solar 4 | 32 | 25 | 2014 | Texas | 58 | ||||||||||||||||
Broken Bow II | 37 | 25 | 2014 | Nebraska | 57 | ||||||||||||||||
(a) | With the exception of Texas Solar 4, Con Edison’s ownership interest is 50 percent and these projects are accounted for using the equity method of accounting. Con Edison is not the primary beneficiary since the power to direct the activities that most significantly impact the economics of the entities are shared equally between Con Edison Development and third parties. Con Edison’s ownership interest in Texas Solar 4 is 80 percent and is consolidated in the financial statements. Con Edison is the primary beneficiary since the power to direct the activities that most significantly impact the economics of Texas Solar 4 is held by Con Edison Development. | ||||||||||||||||||||
(b) | Pilesgrove has 3-5 year Solar Renewable Energy Credit (SREC) hedges in place. | ||||||||||||||||||||
(c) | For investments accounted for under the equity method, maximum exposure is equal to the carrying value of the investment on the balance sheet. For consolidated investments, maximum exposure is equal to the net assets of the investment on the balance sheet. Con Edison did not provide any financial or other support during the year that was not previously contractually required. |
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Related Party Transactions [Abstract] | |||||||||||||
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, 2014, 2013 and 2012 were as follows: | ||||||||||||
CECONY | |||||||||||||
(Millions of Dollars) | 2014 | 2013 | 2012 | ||||||||||
Cost of services provided | $ | 90 | $ | 84 | $ | 83 | |||||||
Cost of services received | $ | 57 | $ | 52 | $ | 49 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Summary Of Significant Accounting Policies [Line Items] | |||
Annual aggregate depreciation allowance | $1,048,000,000 | ||
Impairment charges | 0 | 0 | 0 |
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 | 20.00% | ||
Non Utility Plan [Member] | Minimum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives, (years) | 3 years | ||
Non Utility Plan [Member] | Maximum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives, (years) | 30 years | ||
CECONY [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
AFUDC rates | 1.60% | 4.00% | 6.50% |
Average depreciation rates | 3.10% | 3.20% | 3.10% |
Annual aggregate depreciation allowance | $993,000,000 | ||
CECONY [Member] | Electric Generation [Member] | Minimum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives, (years) | 5 years | ||
CECONY [Member] | Electric Generation [Member] | Maximum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives, (years) | 85 years | ||
CECONY [Member] | Gas [Member] | Minimum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives, (years) | 5 years | ||
CECONY [Member] | Gas [Member] | Maximum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives, (years) | 85 years | ||
CECONY [Member] | Steam [Member] | Minimum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives, (years) | 5 years | ||
CECONY [Member] | Steam [Member] | Maximum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives, (years) | 80 years | ||
CECONY [Member] | General [Member] | Minimum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives, (years) | 5 years | ||
CECONY [Member] | General [Member] | Maximum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives, (years) | 55 years | ||
O&R [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
AFUDC rates | 2.60% | 5.70% | 7.00% |
Average depreciation rates | 2.90% | 2.80% | 2.90% |
O&R [Member] | Electric Generation [Member] | Minimum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives, (years) | 5 years | ||
O&R [Member] | Electric Generation [Member] | Maximum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives, (years) | 75 years | ||
O&R [Member] | Gas [Member] | Minimum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives, (years) | 5 years | ||
O&R [Member] | Gas [Member] | Maximum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives, (years) | 75 years | ||
O&R [Member] | General [Member] | Minimum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives, (years) | 5 years | ||
O&R [Member] | General [Member] | Maximum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives, (years) | 50 years |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Capitalized Cost of Utility Plant (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
General | $2,465 | $2,336 |
Held for future use | 76 | 73 |
Construction work in progress | 1,031 | 1,393 |
NET UTILITY PLANT | 29,326 | 27,795 |
Electric Generation [Member] | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Generation | 451 | 452 |
Electric Transmission [Member] | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Transmission | 2,956 | 2,776 |
Electric Distribution [Member] | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Distribution | 16,361 | 15,277 |
Gas [Member] | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Gas | 5,006 | 4,469 |
Steam [Member] | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Steam | 1,795 | 1,790 |
General [Member] | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
General | 1,650 | 1,565 |
CECONY [Member] | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
General | 2,265 | 2,154 |
Held for future use | 65 | 62 |
Construction work in progress | 971 | 1,303 |
NET UTILITY PLANT | 27,585 | 26,146 |
CECONY [Member] | Electric Generation [Member] | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Generation | 451 | 452 |
CECONY [Member] | Electric Transmission [Member] | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Transmission | 2,744 | 2,597 |
CECONY [Member] | Electric Distribution [Member] | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Distribution | 15,531 | 14,496 |
CECONY [Member] | Gas [Member] | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Gas | 4,530 | 4,013 |
CECONY [Member] | Steam [Member] | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
Steam | 1,795 | 1,790 |
CECONY [Member] | General [Member] | ||
Public Utility, Property, Plant and Equipment [Line Items] | ||
General | $1,498 | $1,433 |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies - Schedule of Total Excise Taxes Recorded in Operating Revenues (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Excise Taxes [Line Items] | |||
Excise taxes | $365 | $354 | $334 |
CECONY [Member] | |||
Schedule of Excise Taxes [Line Items] | |||
Excise taxes | $343 | $329 | $306 |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies - Research and Development Costs (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Research and Development Expenses [Line Items] | |||
Research and Development Costs | $22 | $18 | $21 |
CECONY [Member] | |||
Research and Development Expenses [Line Items] | |||
Research and Development Costs | $20 | $16 | $19 |
Summary_of_Significant_Account7
Summary of Significant Accounting Policies - Earnings Per Common Share (Detail) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share [Abstract] | |||
Net income for common stock | $1,092 | $1,062 | $1,138 |
Weighted average common shares outstanding - Basic | 292.9 | 292.9 | 292.9 |
Add: Incremental shares attributable to effect of potentially dilutive securities | 1.1 | 1.5 | 1.6 |
Adjusted weighted average common shares outstanding - Diluted | 294 | 294.4 | 294.5 |
Net income for common stock per common share - basic | $3.73 | $3.62 | $3.88 |
Net income for common stock per common share - diluted | $3.71 | $3.61 | $3.86 |
Summary_of_Significant_Account8
Summary of Significant Accounting Policies - Changes in Accumulated Other Comprehensive Income by Component (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated OCI, net of taxes | ($25) | ($53) | |
OCI before reclassifications, net of tax | -26 | 21 | |
Amounts reclassified from accumulated OCI related to pension plan liabilities, net of tax | 6 | 7 | |
TOTAL OTHER COMPREHENSIVE INCOME, NET OF TAXES | -20 | 28 | 5 |
Accumulated OCI, net of taxes | -45 | -25 | -53 |
CECONY [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated OCI, net of taxes | -6 | -9 | |
OCI before reclassifications, net of tax | -6 | 2 | |
Amounts reclassified from accumulated OCI related to pension plan liabilities, net of tax | 1 | 1 | |
TOTAL OTHER COMPREHENSIVE INCOME, NET OF TAXES | -5 | 3 | -1 |
Accumulated OCI, net of taxes | ($11) | ($6) | ($9) |
Summary_of_Significant_Account9
Summary of Significant Accounting Policies - Changes in Accumulated Other Comprehensive Income by Component (Parenthetical) (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
OCI before reclassifications, Tax | $18 | ($15) |
Amounts reclassified from accumulated OCI related to pension plan liabilities, Tax | -4 | -5 |
CECONY [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
OCI before reclassifications, Tax | 4 | -1 |
Amounts reclassified from accumulated OCI related to pension plan liabilities, Tax | ($1) | ($1) |
Regulatory_Matters_Summary_of_
Regulatory Matters - Summary of Utilities Rate Plans (CECONY-Electric) (Detail) (USD $) | 9 Months Ended | 12 Months Ended | 36 Months Ended | 1 Months Ended | 12 Months Ended | 24 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2012 | Mar. 31, 2011 | Mar. 31, 2013 | Jan. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2015 | |
Public Utilities, General Disclosures [Line Items] | |||||||||||
Cost reconciliations, deferred net regulatory assets | $604,000,000 | $615,000,000 | $604,000,000 | ||||||||
Cost reconciliations, deferred net regulatory liabilities | 871,000,000 | 910,000,000 | 871,000,000 | ||||||||
CECONY [Member] | |||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||
Cost reconciliations, deferred net regulatory assets | 569,000,000 | 574,000,000 | 569,000,000 | ||||||||
Cost reconciliations, deferred net regulatory liabilities | 825,000,000 | 863,000,000 | 825,000,000 | ||||||||
CECONY [Member] | Electric Transmission [Member] | |||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||
Deferred revenues | 34,000,000 | 34,000,000 | 59,000,000 | ||||||||
Cost reconciliations, deferred net regulatory assets | 35,000,000 | 35,000,000 | |||||||||
Base rate changes | -76,200,000 | 287,000,000 | 420,000,000 | 420,000,000 | |||||||
Amortizations to income of net regulatory (assets) and liabilities | -75,300,000 | ||||||||||
Deferred major storm costs | 107,000,000 | ||||||||||
Retention of annual transmission congestion revenues | 90,000,000 | 90,000,000 | 120,000,000 | 120,000,000 | 120,000,000 | ||||||
Negative revenue adjustments | 5,000,000 | 0 | 0 | ||||||||
Cost reconciliations, deferred net regulatory liabilities | 57,000,000 | 146,000,000 | |||||||||
Deferred regulatory liability | 7,000,000 | 7,000,000 | |||||||||
Average rate base | 17,323,000,000 | 16,826,000,000 | 15,987,000,000 | 14,887,000,000 | |||||||
Weighted average cost of capital (after-tax) | 7.05% | 7.76% | 7.76% | 7.76% | |||||||
Authorized return on common equity | 9.20% | 10.15% | 10.15% | 10.15% | |||||||
Earnings sharing percentage | 9.80% | 10.65% | 10.65% | 11.15% | 10.65% | ||||||
Authorized return on common equity, austerity measures | 13,000,000 | 20,000,000 | 27,000,000 | ||||||||
Earnings sharing, threshold limit | 0 | 17,500,000 | |||||||||
Cost of long-term debt | 5.17% | 5.65% | 5.65% | 5.65% | 5.65% | ||||||
Common equity ratio | 48.00% | 48.00% | 48.00% | 48.00% | |||||||
CECONY [Member] | Electric Transmission [Member] | Maximum [Member] | |||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||
Potential penalties | 400,000,000 | 350,000,000 | 350,000,000 | 350,000,000 | |||||||
CECONY [Member] | Electric Transmission [Member] | T&D [Member] | |||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||
Deferred regulatory liability | 16,869,000,000 | 15,414,000,000 | 14,742,000,000 | 13,818,000,000 | |||||||
CECONY [Member] | Electric Transmission [Member] | ERP [Member] | |||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||
Deferred regulatory liability | 115,000,000 | 25,000,000 | |||||||||
CECONY [Member] | Electric Transmission [Member] | Other [Member] | |||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||
Deferred regulatory liability | 2,034,000,000 | 1,650,000,000 | 1,565,000,000 | 1,487,000,000 | |||||||
CECONY [Member] | Electric Transmission [Member] | Storm Hardening [Member] | |||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||
Deferred regulatory liability | 89,000,000 | ||||||||||
CECONY [Member] | Electric Transmission [Member] | Scenario, Forecast [Member] | |||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||
Base rate changes | 124,000,000 | ||||||||||
Amortizations to income of net regulatory (assets) and liabilities | -37,000,000 | ||||||||||
Deferred major storm costs | 107,000,000 | 107,000,000 | |||||||||
Retention of annual transmission congestion revenues | 90,000,000 | ||||||||||
Average rate base | 18,113,000,000 | ||||||||||
Weighted average cost of capital (after-tax) | 7.08% | ||||||||||
Authorized return on common equity | 10.00% | 9.20% | |||||||||
Earnings sharing percentage | 9.80% | 9.80% | |||||||||
Cost of long-term debt | 5.23% | 5.23% | |||||||||
Common equity ratio | 48.00% | 48.00% | |||||||||
CECONY [Member] | Electric Transmission [Member] | Scenario, Forecast [Member] | Maximum [Member] | |||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||
Potential penalties | 400,000,000 | ||||||||||
CECONY [Member] | Electric Transmission [Member] | Scenario, Forecast [Member] | T&D [Member] | |||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||
Deferred regulatory liability | 17,401,000,000 | ||||||||||
CECONY [Member] | Electric Transmission [Member] | Scenario, Forecast [Member] | Other [Member] | |||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||
Deferred regulatory liability | 2,102,000,000 | ||||||||||
CECONY [Member] | Electric Transmission [Member] | Scenario, Forecast [Member] | Storm Hardening [Member] | |||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||
Deferred regulatory liability | $177,000,000 |
Regulatory_Matters_Summary_of_1
Regulatory Matters - Summary of Utilities Rate Plans (CECONY-Electric) (Parenthetical) (Detail) (Electric Transmission [Member], CECONY [Member], USD $) | 9 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2015 |
Public Utilities, General Disclosures [Line Items] | ||||
Potential refund from customers | $249 | |||
Elimination of temporary base rate increase through credits | 134 | |||
Deferrals for property taxes limitation from rates | 80.00% | 90.00% | ||
Annual maximum property tax adjustment allowed on required rate of return | Not more than a 10 basis point | |||
PJM Interconnection L.L.C. [Member] | ||||
Public Utilities, General Disclosures [Line Items] | ||||
Recovery of charges pursuant to tariff of PJM | 20 | |||
Scenario, Forecast [Member] | ||||
Public Utilities, General Disclosures [Line Items] | ||||
Base rate change deferral regulatory liability impact | 30 | |||
Storm Reserve [Member] | ||||
Public Utilities, General Disclosures [Line Items] | ||||
Revenue requirement | 21 | |||
Storm Reserve [Member] | Scenario, Forecast [Member] | ||||
Public Utilities, General Disclosures [Line Items] | ||||
Revenue requirement | $21 |
Regulatory_Matters_Additional_
Regulatory Matters - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | ||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2012 | Mar. 31, 2011 | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Oct. 31, 2012 | Oct. 31, 2011 | Oct. 31, 2010 | Jan. 31, 2016 | Dec. 31, 2015 | Nov. 01, 2015 | Jun. 30, 2015 | Dec. 31, 2016 |
Electric Transmission [Member] | CECONY [Member] | |||||||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||||||
Return on common equity | 9.20% | 10.15% | 10.15% | 10.15% | |||||||||||||
Common equity ratio | 48.00% | 48.00% | 48.00% | 48.00% | |||||||||||||
Electric Transmission [Member] | O&R [Member] | |||||||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||||||
Return on common equity | 9.50% | 9.40% | |||||||||||||||
Common equity ratio | 48.00% | 48.00% | |||||||||||||||
Gas [Member] | CECONY [Member] | |||||||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||||||
Return on common equity | 9.30% | 9.60% | 9.60% | 9.60% | |||||||||||||
Common equity ratio | 48.00% | 48.00% | 48.00% | 48.00% | |||||||||||||
Gas [Member] | O&R [Member] | |||||||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||||||
Return on common equity | 10.40% | 10.40% | 10.40% | ||||||||||||||
Common equity ratio | 48.00% | 48.00% | 48.00% | ||||||||||||||
Scenario, Forecast [Member] | Electric Transmission [Member] | CECONY [Member] | |||||||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||||||
Electric rate increases | $368 | ||||||||||||||||
Return on common equity | 10.00% | 9.20% | |||||||||||||||
Common equity ratio | 48.00% | 48.00% | |||||||||||||||
Scenario, Forecast [Member] | Electric Transmission [Member] | O&R [Member] | |||||||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||||||
Electric rate increases | 33.4 | ||||||||||||||||
Return on common equity | 9.75% | 9.60% | |||||||||||||||
Common equity ratio | 48.00% | 48.00% | |||||||||||||||
Scenario, Forecast [Member] | Gas [Member] | CECONY [Member] | |||||||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||||||
Return on common equity | 9.30% | 9.30% | |||||||||||||||
Common equity ratio | 48.00% | 48.00% | |||||||||||||||
Scenario, Forecast [Member] | Gas [Member] | O&R [Member] | |||||||||||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||||||||||
Electric rate increases | $40.70 | ||||||||||||||||
Return on common equity | 9.75% | ||||||||||||||||
Common equity ratio | 48.00% |
Regulatory_Matters_Summary_of_2
Regulatory Matters - Summary of Utilities Rate Plans (CECONY-Gas) (Detail) (USD $) | 12 Months Ended | 36 Months Ended | 12 Months Ended | 36 Months Ended | ||||||
Dec. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | |
Public Utilities, General Disclosures [Line Items] | ||||||||||
Cost reconciliation, deferred net regulatory assets | $615,000,000 | $604,000,000 | ||||||||
Cost reconciliations, deferred net regulatory liabilities | 910,000,000 | 871,000,000 | ||||||||
CECONY [Member] | ||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||
Cost reconciliation, deferred net regulatory assets | 574,000,000 | 569,000,000 | ||||||||
Cost reconciliations, deferred net regulatory liabilities | 863,000,000 | 825,000,000 | ||||||||
CECONY [Member] | Gas [Member] | ||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||
Base rate changes | -54,600,000 | 47,000,000 | 48,000,000 | 47,000,000 | ||||||
Amortizations to income of net regulatory (assets) and liabilities | -53,100,000 | |||||||||
Percentage of revenue reserve | 15.00% | 25.00% | 25.00% | 25.00% | ||||||
Amount of revenues retained | 70,000,000 | 64,000,000 | 57,000,000 | |||||||
Deferred revenues | 28,000,000 | 36,000,000 | 22,000,000 | |||||||
Recognize penalties | 0 | |||||||||
Cost reconciliation, deferred net regulatory assets | 38,000,000 | 26,000,000 | 9,000,000 | |||||||
Cost reconciliations, deferred net regulatory liabilities | 0 | 9,500,000 | 2,900,000 | |||||||
Average rate base | 3,521,000,000 | 3,434,000,000 | 3,245,000,000 | 3,027,000,000 | ||||||
Authorized return on common equity, austerity measures | 2,000,000 | 4,000,000 | ||||||||
Weighted average cost of capital (after-tax) | 7.10% | 7.46% | 7.46% | 7.46% | ||||||
Authorized return on common equity | 9.30% | 9.60% | 9.60% | 9.60% | ||||||
Earnings sharing percentage | 9.90% | 10.15% | 10.15% | 10.35% | 10.15% | |||||
Cost of long-term debt | 5.17% | 5.57% | 5.57% | 5.57% | 5.57% | |||||
Common equity ratio | 48.00% | 48.00% | 48.00% | 48.00% | ||||||
Negative revenue adjustments | 0 | 0 | ||||||||
CECONY [Member] | Gas [Member] | Scenario, Forecast [Member] | ||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||
Base rate changes | 56,800,000 | 38,600,000 | ||||||||
Amortizations to income of net regulatory (assets) and liabilities | 4,000,000 | |||||||||
Percentage of revenue reserve | 15.00% | 15.00% | ||||||||
Average rate base | 4,236,000,000 | 3,863,000,000 | ||||||||
Weighted average cost of capital (after-tax) | 7.21% | 7.13% | ||||||||
Authorized return on common equity | 9.30% | 9.30% | ||||||||
Earnings sharing percentage | 9.90% | 9.90% | 9.90% | |||||||
Cost of long-term debt | 5.39% | 5.23% | 5.39% | |||||||
Common equity ratio | 48.00% | 48.00% | ||||||||
CECONY [Member] | Gas [Member] | Gas Delivery [Member] | ||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||
Net utility plant reconciliations | 3,899,000,000 | 3,346,000,000 | 3,148,000,000 | 2,934,000,000 | ||||||
CECONY [Member] | Gas [Member] | Gas Delivery [Member] | Scenario, Forecast [Member] | ||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||
Net utility plant reconciliations | 4,698,000,000 | 4,258,000,000 | ||||||||
CECONY [Member] | Gas [Member] | Storm Hardening [Member] | ||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||
Net utility plant reconciliations | 3,000,000 | |||||||||
CECONY [Member] | Gas [Member] | Storm Hardening [Member] | Scenario, Forecast [Member] | ||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||
Net utility plant reconciliations | 30,000,000 | 8,000,000 | ||||||||
CECONY [Member] | Maximum [Member] | Gas [Member] | ||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||
Amount of revenues retained | 65,000,000 | 58,000,000 | 58,000,000 | 58,000,000 | 58,000,000 | |||||
Potential penalties | 33,000,000 | 12,600,000 | 12,600,000 | 12,600,000 | ||||||
CECONY [Member] | Maximum [Member] | Gas [Member] | Scenario, Forecast [Member] | ||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||
Amount of revenues retained | 65,000,000 | 65,000,000 | 65,000,000 | |||||||
Potential penalties | $56,000,000 | $44,000,000 |
Regulatory_Matters_Summary_of_3
Regulatory Matters - Summary of Utilities Rate Plans (CECONY-Gas) (Parenthetical) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2016 |
Public Utilities, General Disclosures [Line Items] | |||
Other regulatory liabilities | $105 | ||
Gas [Member] | CECONY [Member] | |||
Public Utilities, General Disclosures [Line Items] | |||
Potential refund from customers | 32 | ||
Difference in property taxes | 90.00% | 80.00% | |
Maximum impact on return on common equity and deferral of facility relocation expenses | Not more than a 10 basis point | ||
Scenario, Forecast [Member] | Gas [Member] | CECONY [Member] | |||
Public Utilities, General Disclosures [Line Items] | |||
Other regulatory liabilities | $32 |
Regulatory_Matters_Summary_of_4
Regulatory Matters - Summary of Utilities Rate Plans (CECONY-Steam) (Detail) (USD $) | 12 Months Ended | 36 Months Ended | 12 Months Ended | 36 Months Ended | ||||||
Dec. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | |
Public Utilities, General Disclosures [Line Items] | ||||||||||
Cost reconciliation, deferred net regulatory liabilities | $910,000,000 | $871,000,000 | ||||||||
CECONY [Member] | ||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||
Cost reconciliation, deferred net regulatory liabilities | 863,000,000 | 825,000,000 | ||||||||
CECONY [Member] | Steam [Member] | ||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||
Base rate changes | -22,400,000 | 17,800,000 | 49,500,000 | 49,500,000 | ||||||
Base rate change through surcharge | 31,700,000 | |||||||||
Amortizations to income of net regulatory (assets) and liabilities | -20,100,000 | |||||||||
Negative revenue adjustments | 0 | 0 | 0 | |||||||
Cost reconciliation, deferred net regulatory liabilities | 42,000,000 | 17,000,000 | 12,000,000 | |||||||
Deferred regulatory liability | 1,100,000 | 0 | 200,000 | |||||||
Average rate base | 1,511,000,000 | 1,613,000,000 | 1,603,000,000 | 1,589,000,000 | ||||||
Authorized return on common equity, austerity measures | 2,000,000 | 3,000,000 | ||||||||
Earnings sharing, threshold limit | 0 | 500,000 | ||||||||
Weighted average cost of capital (after-tax) | 7.10% | 7.46% | 7.46% | 7.46% | ||||||
Cost of long-term debt | 5.17% | 5.57% | 5.57% | 5.57% | 5.57% | |||||
Authorized return on common equity | 9.30% | 9.60% | 9.60% | 9.60% | ||||||
Common equity ratio | 48.00% | 48.00% | 48.00% | 48.00% | ||||||
Earnings sharing percentage | 9.90% | 10.15% | 10.15% | 10.35% | 10.15% | |||||
CECONY [Member] | Steam [Member] | Production [Member] | ||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||
Deferred regulatory liability | 1,752,000,000 | 433,000,000 | 426,000,000 | 415,000,000 | ||||||
CECONY [Member] | Steam [Member] | Distribution [Member] | ||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||
Deferred regulatory liability | 6,000,000 | 543,000,000 | 534,000,000 | 521,000,000 | ||||||
CECONY [Member] | Steam [Member] | Scenario, Forecast [Member] | ||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||
Base rate changes | 20,300,000 | 19,800,000 | ||||||||
Amortizations to income of net regulatory (assets) and liabilities | 37,000,000 | |||||||||
Average rate base | 1,604,000,000 | 1,547,000,000 | ||||||||
Weighted average cost of capital (after-tax) | 7.21% | 7.13% | ||||||||
Cost of long-term debt | 5.39% | 5.23% | 5.39% | |||||||
Authorized return on common equity | 9.30% | 9.30% | ||||||||
Common equity ratio | 48.00% | 48.00% | ||||||||
Earnings sharing percentage | 9.90% | 9.90% | 9.90% | |||||||
CECONY [Member] | Steam [Member] | Scenario, Forecast [Member] | Production [Member] | ||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||
Deferred regulatory liability | 1,720,000,000 | 1,732,000,000 | ||||||||
CECONY [Member] | Steam [Member] | Scenario, Forecast [Member] | Distribution [Member] | ||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||
Deferred regulatory liability | 25,000,000 | 11,000,000 | ||||||||
CECONY [Member] | Maximum [Member] | Steam [Member] | ||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||
Potential penalties | 1,000,000 | 1,000,000 | 1,000,000 | 1,000,000 | ||||||
CECONY [Member] | Maximum [Member] | Steam [Member] | Scenario, Forecast [Member] | ||||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||||
Potential penalties | $1,000,000 | $1,000,000 |
Regulatory_Matters_Summary_of_5
Regulatory Matters - Summary of Utilities Rate Plans (CECONY-Steam) (Parenthetical) (Detail) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2016 |
Public Utilities, General Disclosures [Line Items] | ||||
Other regulatory liabilities | 105 | |||
Steam [Member] | CECONY [Member] | ||||
Public Utilities, General Disclosures [Line Items] | ||||
Potential refund from customers | 6 | |||
Difference in property taxes | 90.00% | 80.00% | ||
Maximum impact on return on common equity and deferral of facility relocation expenses | Not more than a 10 basis point | |||
Scenario, Forecast [Member] | Steam [Member] | CECONY [Member] | ||||
Public Utilities, General Disclosures [Line Items] | ||||
Other regulatory liabilities | $8 |
Regulatory_Matters_Summary_of_6
Regulatory Matters - Summary of Utilities Rate Plans (O&R New York-Electric) (Detail) (O&R [Member], Electric Transmission [Member], USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | 36 Months Ended | ||||
Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Nov. 01, 2015 | Jun. 30, 2015 | Jun. 30, 2015 | |
Public Utilities, General Disclosures [Line Items] | ||||||||
Base rate changes | $8,800,000 | $19,400,000 | ||||||
Deferred revenues | -3,400,000 | 3,200,000 | 2,600,000 | |||||
Negative revenue adjustments | 0 | 0 | 0 | |||||
Recognition of deferred expenses | -200,000 | 4,100,000 | 7,800,000 | |||||
Deferred regulatory liability | -2,300,000 | 704,000,000 | -1,100,000 | 678,000,000 | 4,200,000 | |||
Average rate base | 708,000,000 | 671,000,000 | ||||||
Weighted average cost of capital (after-tax) | 7.65% | 7.61% | ||||||
Authorized return on common equity | 9.50% | 9.40% | ||||||
Earnings sharing, threshold limit | 1,000,000 | |||||||
Cost of long-term debt | 6.07% | 6.07% | ||||||
Common equity ratio | 48.00% | 48.00% | ||||||
Maximum [Member] | ||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||
Potential penalties | 3,000,000 | 3,000,000 | ||||||
Scenario, Forecast [Member] | ||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||
Base rate changes | 15,200,000 | |||||||
Amortizations to income of net regulatory (assets) and liabilities | -32,200,000 | |||||||
Deferred regulatory liability | 753,000,000 | |||||||
Average rate base | 759,000,000 | |||||||
Weighted average cost of capital (after-tax) | 7.48% | |||||||
Authorized return on common equity | 9.75% | 9.60% | ||||||
Cost of long-term debt | 5.64% | 5.64% | ||||||
Common equity ratio | 48.00% | 48.00% | ||||||
Scenario, Forecast [Member] | Maximum [Member] | ||||||||
Public Utilities, General Disclosures [Line Items] | ||||||||
Potential penalties | $3,000,000 |
Regulatory_Matters_Summary_of_7
Regulatory Matters - Summary of Utilities Rate Plans (O&R New York-Gas) (Detail) (USD $) | 12 Months Ended | 36 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 31, 2012 | Oct. 31, 2011 | Oct. 31, 2010 | Oct. 31, 2012 | |
Public Utilities, General Disclosures [Line Items] | |||||||
Cost reconciliations, deferred net regulatory assets | $615,000,000 | $604,000,000 | |||||
O&R [Member] | Gas [Member] | |||||||
Public Utilities, General Disclosures [Line Items] | |||||||
Base rate changes | 4,600,000 | 9,000,000 | 9,000,000 | ||||
Base rate change through surcharge | 4,300,000 | ||||||
Amortizations to income of net regulatory (assets) and liabilities | -2,000,000 | ||||||
Deferred revenues | -100,000 | 700,000 | 4,700,000 | ||||
Negative revenue adjustments | 0 | 0 | 0 | ||||
Cost reconciliations, deferred net regulatory assets | 8,300,000 | 8,300,000 | 700,000 | ||||
Net utility plant reconciliations | 0 | 0 | 700,000 | ||||
Average rate base | 309,000,000 | 296,000,000 | 280,000,000 | ||||
Weighted average cost of capital (after-tax) | 8.49% | 8.49% | 8.49% | ||||
Authorized return on common equity | 10.40% | 10.40% | 10.40% | ||||
Earnings sharing percentage | 11.40% | 11.40% | 11.40% | 11.40% | |||
Cost of long-term debt | 6.81% | 6.81% | 6.81% | 6.81% | |||
Common equity ratio | 48.00% | 48.00% | 48.00% | ||||
O&R [Member] | Gas [Member] | Maximum [Member] | |||||||
Public Utilities, General Disclosures [Line Items] | |||||||
Potential penalties | $1,400,000 | $1,400,000 | $1,400,000 |
Regulatory_Matters_Summary_of_8
Regulatory Matters - Summary of Utilities Rate Plans (Rockland Electric Company (RECO)) (Detail) (Rockland Electric Company (RECO) [Member], USD $) | 12 Months Ended | 48 Months Ended | 51 Months Ended | 12 Months Ended | 36 Months Ended | 48 Months Ended | |||
Apr. 30, 2014 | Apr. 30, 2013 | Apr. 30, 2012 | Apr. 30, 2011 | Apr. 30, 2014 | Jul. 31, 2014 | Jul. 31, 2015 | Jul. 31, 2015 | Jul. 31, 2015 | |
Public Utilities, General Disclosures [Line Items] | |||||||||
Base rate changes | $9.80 | ||||||||
Amortizations to income of net regulatory (assets) and liabilities | -3.9 | -4.9 | |||||||
Average rate base | 148.6 | 148.6 | 148.6 | 148.6 | |||||
Weighted average cost of capital (after-tax) | 8.21% | 8.21% | 8.21% | 8.21% | |||||
Authorized return on common equity | 10.30% | 10.30% | 10.30% | 10.30% | |||||
Cost of long-term debt | 6.16% | 6.16% | 6.16% | 6.16% | 6.16% | ||||
Common equity ratio | 50.00% | 50.00% | 50.00% | 50.00% | |||||
Scenario, Forecast [Member] | |||||||||
Public Utilities, General Disclosures [Line Items] | |||||||||
Base rate changes | 13 | ||||||||
Amortizations to income of net regulatory (assets) and liabilities | 0.4 | -25.6 | |||||||
Average rate base | $172.20 | ||||||||
Weighted average cost of capital (after-tax) | 7.83% | ||||||||
Authorized return on common equity | 9.75% | ||||||||
Cost of long-term debt | 5.89% | 5.89% | 5.89% | ||||||
Common equity ratio | 50.00% |
Regulatory_Matters_Summary_of_9
Regulatory Matters - Summary of Utilities Rate Plans (Pike County Light & Power Company (Pike)-Electric) (Detail) (Pike County Light & Power Company (Pike) [Member], Electric Transmission [Member], USD $) | 12 Months Ended | 60 Months Ended | 12 Months Ended | 60 Months Ended |
Mar. 31, 2010 | Mar. 31, 2014 | Aug. 31, 2015 | Aug. 31, 2015 | |
Public Utilities, General Disclosures [Line Items] | ||||
Base rate changes | $900,000 | |||
Amortization to income of net regulatory (assets) and liabilities | 100,000 | |||
Scenario, Forecast [Member] | ||||
Public Utilities, General Disclosures [Line Items] | ||||
Base rate changes | 1,250,000 | |||
Amortization to income of net regulatory (assets) and liabilities | ($70,000) |
Recovered_Sheet1
Regulatory Matters - Summary of Utilities Rate Plans (Pike-Gas) (Detail) (Pike County Light & Power Company (Pike) [Member], Gas [Member], USD $) | 12 Months Ended | |
Mar. 31, 2010 | Aug. 31, 2015 | |
Public Utilities, General Disclosures [Line Items] | ||
Base rate changes | $300,000 | |
Scenario, Forecast [Member] | ||
Public Utilities, General Disclosures [Line Items] | ||
Base rate changes | $100,000 |
Regulatory_Matters_Other_Regul
Regulatory Matters - Other Regulatory Matters - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Public Utilities, General Disclosures [Line Items] | ||
Revenues from electric | $249 | |
Revenues from gas | 32 | |
Revenues from steam service | 6 | |
Potential refund to customers | 1,675 | |
Overcharges of construction expenditures | 208 | |
Other regulatory liabilities | 105 | |
Regulatory liabilities | 187 | 148 |
CECONY [Member] | ||
Public Utilities, General Disclosures [Line Items] | ||
Response and restoration costs | 503 | |
Capital expenditures | 148 | |
Regulatory liabilities | 142 | 107 |
O&R [Member] | ||
Public Utilities, General Disclosures [Line Items] | ||
Response and restoration costs | 91 | |
Capital expenditures | 15 | |
Storm Damage [Member] | ||
Public Utilities, General Disclosures [Line Items] | ||
Number of customers interrupted electric distribution service | 1,400,000 | |
Net Unbilled Revenue Deferrals [Member] | ||
Public Utilities, General Disclosures [Line Items] | ||
Regulatory liabilities | $138 | $133 |
Net Electric Deferrals [Member] | ||
Public Utilities, General Disclosures [Line Items] | ||
Amortization period | 10 years |
Regulatory_Matters_Regulatory_
Regulatory Matters - Regulatory Assets and Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Regulatory assets | ||
Regulatory assets - noncurrent | $9,156 | $7,201 |
Regulatory assets - current | 148 | 29 |
Total Regulatory Assets | 9,304 | 7,230 |
Regulatory liabilities | ||
Regulatory liabilities - noncurrent | 1,993 | 1,728 |
Regulatory liabilities - current | 187 | 148 |
Total Regulatory Liabilities | 2,180 | 1,876 |
Allowance for Cost of Removal Less Salvage [Member] | ||
Regulatory liabilities | ||
Regulatory liabilities - noncurrent | 598 | 540 |
2014 Rate Plan Rate Base Revenue Deferrals [Member] | ||
Regulatory liabilities | ||
Regulatory liabilities - noncurrent | 155 | |
Net Unbilled Revenue Deferrals [Member] | ||
Regulatory liabilities | ||
Regulatory liabilities - noncurrent | 138 | 133 |
Prudence Proceeding [Member] | ||
Regulatory liabilities | ||
Regulatory liabilities - noncurrent | 105 | 40 |
Property Tax Refunds [Member] | ||
Regulatory liabilities | ||
Regulatory liabilities - noncurrent | 87 | 130 |
Long-Term Interest Rate Reconciliation [Member] | ||
Regulatory liabilities | ||
Regulatory liabilities - noncurrent | 78 | 105 |
Carrying Charges on Repair Allowance and Bonus Depreciation [Member] | ||
Regulatory liabilities | ||
Regulatory liabilities - noncurrent | 58 | 88 |
New York State Income Tax Rate Change [Member] | ||
Regulatory liabilities | ||
Regulatory liabilities - noncurrent | 62 | |
World Trade Center Settlement Proceeds [Member] | ||
Regulatory liabilities | ||
Regulatory liabilities - noncurrent | 41 | 62 |
Carrying Charges on Transmission and Distribution Net Plant [Member] | ||
Regulatory liabilities | ||
Regulatory liabilities - noncurrent | 21 | 28 |
Electric Excess Earnings [Member] | ||
Regulatory liabilities | ||
Regulatory liabilities - noncurrent | 19 | 22 |
Other [Member] | ||
Regulatory liabilities | ||
Regulatory liabilities - noncurrent | 290 | 208 |
Refundable Energy Costs - Current [Member] | ||
Regulatory liabilities | ||
Regulatory liabilities - current | 128 | 100 |
Revenue Decoupling Mechanism [Member] | ||
Regulatory liabilities | ||
Regulatory liabilities - current | 30 | 34 |
Future Income Tax [Member] | ||
Regulatory liabilities | ||
Regulatory liabilities - current | 24 | |
Deferred Derivative Gains - Current [Member] | ||
Regulatory liabilities | ||
Regulatory liabilities - current | 5 | 14 |
Unrecognized Pension and Other Postretirement Costs [Member] | ||
Regulatory assets | ||
Regulatory assets - noncurrent | 4,846 | 2,730 |
Future Income Tax [Member] | ||
Regulatory assets | ||
Regulatory assets - noncurrent | 2,273 | 2,145 |
Environmental Remediation Costs [Member] | ||
Regulatory assets | ||
Regulatory assets - noncurrent | 925 | 938 |
Deferred Storm Costs [Member] | ||
Regulatory assets | ||
Regulatory assets - noncurrent | 319 | 441 |
Revenue Taxes [Member] | ||
Regulatory assets | ||
Regulatory assets - noncurrent | 219 | 207 |
Surcharge for New York State Assessment [Member] | ||
Regulatory assets | ||
Regulatory assets - noncurrent | 99 | 78 |
Pension and Other Postretirement Benefits Deferrals [Member] | ||
Regulatory assets | ||
Regulatory assets - noncurrent | 66 | 237 |
Regulatory liabilities | ||
Regulatory liabilities - noncurrent | 46 | 50 |
Net Electric Deferrals [Member] | ||
Regulatory assets | ||
Regulatory assets - noncurrent | 63 | 83 |
Unamortized Loss on Reacquired Debt [Member] | ||
Regulatory assets | ||
Regulatory assets - noncurrent | 57 | 65 |
O & R Property Tax Reconciliation [Member] | ||
Regulatory assets | ||
Regulatory assets - noncurrent | 36 | 22 |
O&R Transition Bond Charges [Member] | ||
Regulatory assets | ||
Regulatory assets - noncurrent | 27 | 33 |
Preferred Stock Redemption [Member] | ||
Regulatory assets | ||
Regulatory assets - noncurrent | 27 | 28 |
Deferred Derivative Losses - Noncurrent [Member] | ||
Regulatory assets | ||
Regulatory assets - noncurrent | 25 | 8 |
Recoverable Energy Costs - Current [Member] | ||
Regulatory assets | ||
Regulatory assets - noncurrent | 19 | 29 |
Regulatory assets - current | 41 | 4 |
Workers' Compensation [Member] | ||
Regulatory assets | ||
Regulatory assets - noncurrent | 8 | 12 |
Other [Member] | ||
Regulatory assets | ||
Regulatory assets - noncurrent | 147 | 145 |
Deferred Derivative Losses - Current [Member] | ||
Regulatory assets | ||
Regulatory assets - current | 97 | 25 |
Future Income Tax - Current [Member] | ||
Regulatory assets | ||
Regulatory assets - current | 10 | |
Property Tax Reconciliation [Member] | ||
Regulatory liabilities | ||
Regulatory liabilities - noncurrent | 295 | 322 |
CECONY [Member] | ||
Regulatory assets | ||
Regulatory assets - noncurrent | 8,481 | 6,639 |
Regulatory assets - current | 132 | 26 |
Total Regulatory Assets | 8,613 | 6,665 |
Regulatory liabilities | ||
Regulatory liabilities - noncurrent | 1,837 | 1,598 |
Regulatory liabilities - current | 142 | 107 |
Total Regulatory Liabilities | 1,979 | 1,705 |
CECONY [Member] | Allowance for Cost of Removal Less Salvage [Member] | ||
Regulatory liabilities | ||
Regulatory liabilities - noncurrent | 499 | 453 |
CECONY [Member] | 2014 Rate Plan Rate Base Revenue Deferrals [Member] | ||
Regulatory liabilities | ||
Regulatory liabilities - noncurrent | 155 | |
CECONY [Member] | Net Unbilled Revenue Deferrals [Member] | ||
Regulatory liabilities | ||
Regulatory liabilities - noncurrent | 138 | 133 |
CECONY [Member] | Prudence Proceeding [Member] | ||
Regulatory liabilities | ||
Regulatory liabilities - noncurrent | 105 | 40 |
CECONY [Member] | Property Tax Refunds [Member] | ||
Regulatory liabilities | ||
Regulatory liabilities - noncurrent | 87 | 130 |
CECONY [Member] | Long-Term Interest Rate Reconciliation [Member] | ||
Regulatory liabilities | ||
Regulatory liabilities - noncurrent | 78 | 105 |
CECONY [Member] | Carrying Charges on Repair Allowance and Bonus Depreciation [Member] | ||
Regulatory liabilities | ||
Regulatory liabilities - noncurrent | 57 | 87 |
CECONY [Member] | New York State Income Tax Rate Change [Member] | ||
Regulatory liabilities | ||
Regulatory liabilities - noncurrent | 59 | |
CECONY [Member] | World Trade Center Settlement Proceeds [Member] | ||
Regulatory liabilities | ||
Regulatory liabilities - noncurrent | 41 | 62 |
CECONY [Member] | Carrying Charges on Transmission and Distribution Net Plant [Member] | ||
Regulatory liabilities | ||
Regulatory liabilities - noncurrent | 20 | 20 |
CECONY [Member] | Electric Excess Earnings [Member] | ||
Regulatory liabilities | ||
Regulatory liabilities - noncurrent | 18 | 18 |
CECONY [Member] | Other [Member] | ||
Regulatory liabilities | ||
Regulatory liabilities - noncurrent | 248 | 178 |
CECONY [Member] | Refundable Energy Costs - Current [Member] | ||
Regulatory liabilities | ||
Regulatory liabilities - current | 84 | 66 |
CECONY [Member] | Revenue Decoupling Mechanism [Member] | ||
Regulatory liabilities | ||
Regulatory liabilities - current | 30 | 30 |
CECONY [Member] | Future Income Tax [Member] | ||
Regulatory liabilities | ||
Regulatory liabilities - current | 24 | |
CECONY [Member] | Deferred Derivative Gains - Current [Member] | ||
Regulatory liabilities | ||
Regulatory liabilities - current | 4 | 11 |
CECONY [Member] | Unrecognized Pension and Other Postretirement Costs [Member] | ||
Regulatory assets | ||
Regulatory assets - noncurrent | 4,609 | 2,610 |
CECONY [Member] | Future Income Tax [Member] | ||
Regulatory assets | ||
Regulatory assets - noncurrent | 2,166 | 2,030 |
CECONY [Member] | Environmental Remediation Costs [Member] | ||
Regulatory assets | ||
Regulatory assets - noncurrent | 820 | 830 |
CECONY [Member] | Deferred Storm Costs [Member] | ||
Regulatory assets | ||
Regulatory assets - noncurrent | 224 | 334 |
CECONY [Member] | Revenue Taxes [Member] | ||
Regulatory assets | ||
Regulatory assets - noncurrent | 208 | 196 |
CECONY [Member] | Surcharge for New York State Assessment [Member] | ||
Regulatory assets | ||
Regulatory assets - noncurrent | 92 | 74 |
CECONY [Member] | Pension and Other Postretirement Benefits Deferrals [Member] | ||
Regulatory assets | ||
Regulatory assets - noncurrent | 42 | 211 |
Regulatory liabilities | ||
Regulatory liabilities - noncurrent | 37 | 50 |
CECONY [Member] | Net Electric Deferrals [Member] | ||
Regulatory assets | ||
Regulatory assets - noncurrent | 63 | 83 |
CECONY [Member] | Unamortized Loss on Reacquired Debt [Member] | ||
Regulatory assets | ||
Regulatory assets - noncurrent | 55 | 62 |
CECONY [Member] | Preferred Stock Redemption [Member] | ||
Regulatory assets | ||
Regulatory assets - noncurrent | 27 | 28 |
CECONY [Member] | Deferred Derivative Losses - Noncurrent [Member] | ||
Regulatory assets | ||
Regulatory assets - noncurrent | 23 | 7 |
CECONY [Member] | Recoverable Energy Costs - Current [Member] | ||
Regulatory assets | ||
Regulatory assets - noncurrent | 17 | 28 |
Regulatory assets - current | 40 | 4 |
CECONY [Member] | Workers' Compensation [Member] | ||
Regulatory assets | ||
Regulatory assets - noncurrent | 8 | 12 |
CECONY [Member] | Other [Member] | ||
Regulatory assets | ||
Regulatory assets - noncurrent | 127 | 134 |
CECONY [Member] | Deferred Derivative Losses - Current [Member] | ||
Regulatory assets | ||
Regulatory assets - current | 92 | 22 |
CECONY [Member] | Property Tax Reconciliation [Member] | ||
Regulatory liabilities | ||
Regulatory liabilities - noncurrent | $295 | $322 |
Capitalization_Additional_Info
Capitalization - Additional Information (Detail) (USD $) | 12 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | 31-May-12 | |||
Schedule of Capitalization [Line Items] | |||||
Common stock shares, outstanding | 21,976,200 | 21,976,200 | |||
Percentage limitation for income available for dividends | 100.00% | ||||
Rolling average calculation of income available for dividends, years | 2 years | ||||
Tax-exempt debt issued, value | $494,000,000 | ||||
Long-term debt, fair value | 13,998,000,000 | 12,082,000,000 | |||
Tax-exempt debt | 1,130,000,000 | 1,130,000,000 | |||
Long-term debt | 12,191,000,000 | 10,974,000,000 | |||
Debt instrument, covenant description | Con Edison's ratio of consolidated debt to consolidated capital to exceed 0.675 to 1 | ||||
Covenant principal balance amount limit | 100,000,000 | ||||
Level 2 [Member] | |||||
Schedule of Capitalization [Line Items] | |||||
Long-term debt, fair value | 13,362,000,000 | ||||
Level 3 [Member] | |||||
Schedule of Capitalization [Line Items] | |||||
Long-term debt, fair value | 636,000,000 | ||||
Maximum [Member] | |||||
Schedule of Capitalization [Line Items] | |||||
Ratio of consolidated debt to consolidated capital for tax exempt financing | 0.675 | ||||
Transition Bonds, Issued in 2004 [Member] | |||||
Schedule of Capitalization [Line Items] | |||||
Long-term debt | 18,000,000 | 22,000,000 | |||
CECONY [Member] | |||||
Schedule of Capitalization [Line Items] | |||||
Outstanding shares of Cumulative Preferred Stock | 5 | ||||
Cumulative Preferred Stock, par value | $100 | ||||
Long-term debt, fair value | 12,846,000,000 | 10,797,000,000 | |||
Tax-exempt debt | 1,086,000,000 | [1] | 1,086,000,000 | [1] | |
Long-term debt | 11,214,000,000 | [1] | 9,841,000,000 | [1] | |
CECONY [Member] | Level 2 [Member] | |||||
Schedule of Capitalization [Line Items] | |||||
Long-term debt, fair value | 12,210,000,000 | ||||
CECONY [Member] | Level 3 [Member] | |||||
Schedule of Capitalization [Line Items] | |||||
Long-term debt, fair value | 636,000,000 | ||||
Tax-exempt debt | 636,000,000 | ||||
CECONY [Member] | Maximum [Member] | |||||
Schedule of Capitalization [Line Items] | |||||
Covenant principal balance amount limit | 100,000,000 | ||||
Ratio of consolidated debt to consolidated capital for tax exempt financing | 0.65 | ||||
CECONY [Member] | Minimum [Member] | |||||
Schedule of Capitalization [Line Items] | |||||
Covenant principal balance amount limit | $150,000,000 | ||||
[1] | Rates are to be reset weekly or by auction held every 35 days; December 31, 2014 rates shown. |
Capitalization_Schedule_of_Lon
Capitalization - Schedule of Long-Term Debt Maturities (Detail) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Debt Instrument [Line Items] | |
2015 | $560 |
2016 | 731 |
2017 | 6 |
2018 | 1,260 |
2019 | 540 |
CECONY [Member] | |
Debt Instrument [Line Items] | |
2015 | 350 |
2016 | 650 |
2018 | 1,200 |
2019 | $475 |
Capitalization_Carrying_Amount
Capitalization - Carrying Amounts and Fair Values of Long-Term Debt (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Debt Instrument [Line Items] | ||||
Carrying Amount | $12,191 | $10,974 | ||
Fair Value | 13,998 | 12,082 | ||
CECONY [Member] | ||||
Debt Instrument [Line Items] | ||||
Carrying Amount | 11,214 | [1] | 9,841 | [1] |
Fair Value | $12,846 | $10,797 | ||
[1] | Rates are to be reset weekly or by auction held every 35 days; December 31, 2014 rates shown. |
ShortTerm_Borrowing_Additional
Short-Term Borrowing - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Oct. 31, 2011 | |
Short-term Debt [Line Items] | |||
Credit facility expiry date | 31-Oct-17 | ||
Commercial paper, outstanding | $800,000,000 | $1,451,000,000 | |
Weighted average interest rate | 0.40% | 0.20% | |
Letters of credit outstanding under the Credit Agreement | 11,000,000 | 26,000,000 | |
Loans outstanding under credit agreement | 0 | 0 | |
Line of credit facility, covenant terms | Ratio of consolidated debt to consolidated total capital of 0.65 to 1 (at December 31, 2014 this ratio was 0.51 to 1 for Con Edison and CECONY); having liens on its assets in an aggregate amount exceeding five percent of its consolidated total capital, subject to certain exceptions; and the failure, following any applicable notice period, to meet certain other customary covenants. | ||
Ratio of consolidated debt to consolidated total capital | 0.51 | ||
Minimum percentage of liens on assets | 5.00% | ||
October 2016 [Member] | |||
Short-term Debt [Line Items] | |||
Current amount available | 1,000,000,000 | ||
Maximum [Member] | |||
Short-term Debt [Line Items] | |||
Ratio of consolidated debt to consolidated total capital | 0.65 | ||
Letters of Credit [Member] | October 2016 [Member] | |||
Short-term Debt [Line Items] | |||
Maximum credit available | 2,250,000,000 | ||
Maximum borrowing capacity | 1,200,000,000 | ||
Letters of Credit [Member] | October 2017 [Member] | |||
Short-term Debt [Line Items] | |||
Maximum credit available | 2,100,000,000 | ||
CECONY [Member] | |||
Short-term Debt [Line Items] | |||
Commercial paper, outstanding | 450,000,000 | 1,210,000,000 | |
Weighted average interest rate | 0.40% | 0.20% | |
Letters of credit outstanding under the Credit Agreement | $11,000,000 | $11,000,000 | |
Ratio of consolidated debt to consolidated total capital | 0.51 |
Pension_Benefits_Total_Periodi
Pension Benefits - Total Periodic Benefit Costs (Detail) (Pension Benefits [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost - including administrative expenses | $227 | $267 | $237 |
Interest cost on projected benefit obligation | 572 | 537 | 547 |
Expected return on plan assets | -832 | -750 | -705 |
Recognition of net actuarial loss | 618 | 832 | 709 |
Recognition of prior service costs | 4 | 5 | 8 |
NET PERIODIC BENEFIT COST | 589 | 891 | 796 |
Amortization of regulatory asset | 2 | 2 | 2 |
TOTAL PERIODIC BENEFIT COST | 591 | 893 | 798 |
Cost capitalized | -225 | -348 | -277 |
Reconciliation to rate level | 118 | -84 | -8 |
Cost charged to operating expenses | 484 | 461 | 513 |
CECONY [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost - including administrative expenses | 211 | 249 | 220 |
Interest cost on projected benefit obligation | 536 | 503 | 513 |
Expected return on plan assets | -789 | -713 | -670 |
Recognition of net actuarial loss | 586 | 788 | 670 |
Recognition of prior service costs | 2 | 4 | 6 |
NET PERIODIC BENEFIT COST | 546 | 831 | 739 |
Amortization of regulatory asset | 2 | 2 | 2 |
TOTAL PERIODIC BENEFIT COST | 548 | 833 | 741 |
Cost capitalized | -212 | -327 | -260 |
Reconciliation to rate level | 108 | -87 | -12 |
Cost charged to operating expenses | $444 | $419 | $469 |
Pension_Benefits_Total_Periodi1
Pension Benefits - Total Periodic Benefit Costs (Parenthetical) (Detail) (Pension Benefits [Member], USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Pension Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Increase in CECONY's pension obligation | $45 |
Pension_Benefits_Schedule_of_F
Pension Benefits - Schedule of Funded Status (Detail) (Pension Benefits [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CHANGE IN PROJECTED BENEFIT OBLIGATION | |||
Benefit obligation at beginning of year | $12,197 | $13,406 | $11,825 |
Service cost - excluding administrative expenses | 221 | 259 | 224 |
Interest cost on projected benefit obligation | 572 | 537 | 547 |
Net actuarial (gain)/loss | 2,641 | -1,469 | 1,323 |
Plan amendments | 6 | ||
Benefits paid | -556 | -536 | -513 |
BENEFIT OBLIGATION AT END OF YEAR | 15,081 | 12,197 | 13,406 |
CHANGE IN PLAN ASSETS | |||
Fair value of plan assets at beginning of year | 10,755 | 9,135 | 7,800 |
Actual return on plan assets | 752 | 1,310 | 1,094 |
Employer contributions | 578 | 879 | 785 |
Benefits paid | -556 | -536 | -513 |
Administrative expenses | -34 | -33 | -31 |
FAIR VALUE OF PLAN ASSETS AT END OF YEAR | 11,495 | 10,755 | 9,135 |
FUNDED STATUS | -3,586 | -1,442 | -4,271 |
Unrecognized net loss | 4,888 | 2,759 | 5,594 |
Unrecognized prior service costs | 20 | 17 | 23 |
Accumulated benefit obligation | 13,454 | 11,004 | 11,911 |
CECONY [Member] | |||
CHANGE IN PROJECTED BENEFIT OBLIGATION | |||
Benefit obligation at beginning of year | 11,429 | 12,572 | 11,072 |
Service cost - excluding administrative expenses | 206 | 241 | 209 |
Interest cost on projected benefit obligation | 536 | 503 | 513 |
Net actuarial (gain)/loss | 2,484 | -1,388 | 1,255 |
Benefits paid | -518 | -499 | -477 |
BENEFIT OBLIGATION AT END OF YEAR | 14,137 | 11,429 | 12,572 |
CHANGE IN PLAN ASSETS | |||
Fair value of plan assets at beginning of year | 10,197 | 8,668 | 7,406 |
Actual return on plan assets | 715 | 1,241 | 1,040 |
Employer contributions | 535 | 819 | 729 |
Benefits paid | -518 | -499 | -477 |
Administrative expenses | -32 | -32 | -30 |
FAIR VALUE OF PLAN ASSETS AT END OF YEAR | 10,897 | 10,197 | 8,668 |
FUNDED STATUS | -3,240 | -1,232 | -3,904 |
Unrecognized net loss | 4,616 | 2,617 | 5,297 |
Unrecognized prior service costs | 4 | 6 | 10 |
Accumulated benefit obligation | $12,553 | $10,268 | $11,116 |
Pension_Benefits_Additional_In
Pension Benefits - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | |||
Pension liability | $2,144 | ||
Investments value | 225 | 201 | |
Other Nonqualified Supplemental Defined Benefit Pension [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated benefit obligation | 289 | 234 | |
CECONY [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension liability | 2,008 | ||
Investments value | 208 | 183 | |
CECONY [Member] | Other Nonqualified Supplemental Defined Benefit Pension [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated benefit obligation | 250 | 199 | |
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Increase to regulatory assets | 2,101 | ||
Charge to OCI | 17 | ||
Net loss estimated to be amortized | 783 | ||
Prior service cost estimated to be amortized | 4 | ||
Accumulated benefit obligation | 13,454 | 11,004 | 11,911 |
Assumptions used in calculating net periodic benefit cost | To determine the assumed discount rate, the Companies use a model that produces a yield curve based on yields on selected highly rated (Aa or higher by either Moodybs Investors Service (Moodybs) or Standard & Poorbs) corporate bonds. Bonds with insufficient liquidity, bonds with questionable pricing information and bonds that are not representative of the overall market are excluded from consideration. For example, the bonds used in the model cannot be callable, they must have a price between 50 percent and 200 percent of the original price, the yield must lie between 1 percent and 20 percent, and the amount of the bond issue outstanding must be in excess of $50 million. The spot rates defined by the yield curve and the planbs projected benefit payments are used to develop a weighted average discount rate. | ||
Estimated future employer contributions | 756 | ||
Increase in pension benefit obligation | 800 | ||
Pension Benefits [Member] | CECONY [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Increase to regulatory assets | 1,992 | ||
Charge to OCI | 3 | ||
Net loss estimated to be amortized | 740 | ||
Prior service cost estimated to be amortized | 2 | ||
Accumulated benefit obligation | 12,553 | 10,268 | 11,116 |
Estimated future employer contributions | $703 |
Pension_Benefits_Schedule_of_A
Pension Benefits - Schedule of Assumptions (Detail) (Pension Benefits [Member]) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate, benefit obligations | 3.90% | 4.80% | 4.10% |
Discount rate, net periodic benefit cost | 4.80% | 4.10% | 4.70% |
Expected return on plan assets | 8.00% | 8.00% | 8.00% |
CECONY [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Rate of compensation increase | 4.25% | 4.35% | 4.35% |
Rate of compensation increase | 4.35% | 4.35% | 4.35% |
O&R [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Rate of compensation increase | 4.00% | 4.25% | 4.25% |
Rate of compensation increase | 4.25% | 4.25% | 4.25% |
Pension_Benefits_Schedule_of_E
Pension Benefits - Schedule of Expected Benefit Payments (Detail) (Pension Benefits [Member], USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Defined Benefit Plan Disclosure [Line Items] | |
2015 | $592 |
2016 | 615 |
2017 | 636 |
2018 | 658 |
2019 | 678 |
2020-2024 | 3,642 |
CECONY [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2015 | 552 |
2016 | 574 |
2017 | 594 |
2018 | 613 |
2019 | 632 |
2020-2024 | $3,388 |
Pension_Benefits_Schedule_of_P
Pension Benefits - Schedule of Plan Assets Allocations (Detail) (Pension Benefits [Member]) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan Assets, Total | 100.00% | 100.00% | 100.00% | |
Scenario, Forecast [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Equity Securities, Target Allocation, Minimum | 55.00% | |||
Equity Securities, Target Allocation, Maximum | 65.00% | |||
Debt Securities, Target Allocation, Minimum | 27.00% | |||
Debt Securities, Target Allocation, Maximum | 33.00% | |||
Real Estate, Target Allocation, Minimum | 8.00% | |||
Real Estate, Target Allocation, Maximum | 12.00% | |||
Plan Assets, Total | 100.00% | |||
Equity [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan Assets | 58.00% | 60.00% | 60.00% | |
Debt Securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan Assets | 32.00% | 30.00% | 31.00% | |
Real Estate [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan Assets | 10.00% | 10.00% | 9.00% |
Pension_Benefits_Schedule_of_F1
Pension Benefits - Schedule of Fair Value of Plan Assets (Detail) (Pension Benefits [Member], USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Defined Benefit Plan Disclosure [Line Items] | ||||
Total investments | $12,415 | $11,759 | ||
Funds for retiree health benefits | -358 | -372 | ||
Investments (excluding funds for retiree health benefits) | 12,057 | 11,387 | ||
Pending activities | -562 | -632 | ||
Total fair value of plan net assets | 11,495 | 10,755 | 9,135 | 7,800 |
U.S. Equity [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total investments | 3,168 | 3,057 | ||
International Equity [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total investments | 3,202 | 3,174 | ||
Private Equity [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total investments | 114 | 67 | ||
Total fair value of plan net assets | 114 | 67 | 20 | |
U.S. Government Issued Debt [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total investments | 2,113 | 1,855 | ||
Corporate Bonds Debt [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total investments | 1,351 | 1,151 | ||
Structured Assets Debt [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total investments | 4 | 4 | ||
Other Fixed Income Debt [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total investments | 208 | 150 | ||
Real Estate [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total investments | 1,137 | 1,062 | ||
Total fair value of plan net assets | 1,137 | 1,062 | 833 | |
Cash and Cash Equivalents [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total investments | 665 | 685 | ||
Futures [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total investments | 229 | 348 | ||
Hedge Funds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total investments | 224 | 206 | ||
Total fair value of plan net assets | 224 | 206 | ||
Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total investments | 6,389 | 5,835 | ||
Funds for retiree health benefits | -184 | -185 | ||
Investments (excluding funds for retiree health benefits) | 6,205 | 5,650 | ||
Level 1 [Member] | U.S. Equity [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total investments | 3,168 | 3,057 | ||
Level 1 [Member] | International Equity [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total investments | 2,841 | 2,303 | ||
Level 1 [Member] | Cash and Cash Equivalents [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total investments | 188 | 127 | ||
Level 1 [Member] | Futures [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total investments | 192 | 348 | ||
Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total investments | 4,551 | 4,589 | ||
Funds for retiree health benefits | -131 | -145 | ||
Investments (excluding funds for retiree health benefits) | 4,420 | 4,444 | ||
Level 2 [Member] | International Equity [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total investments | 361 | 871 | ||
Level 2 [Member] | U.S. Government Issued Debt [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total investments | 2,113 | 1,855 | ||
Level 2 [Member] | Corporate Bonds Debt [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total investments | 1,351 | 1,151 | ||
Level 2 [Member] | Structured Assets Debt [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total investments | 4 | 4 | ||
Level 2 [Member] | Other Fixed Income Debt [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total investments | 208 | 150 | ||
Level 2 [Member] | Cash and Cash Equivalents [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total investments | 477 | 558 | ||
Level 2 [Member] | Futures [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total investments | 37 | |||
Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total investments | 1,475 | 1,335 | ||
Funds for retiree health benefits | -43 | -42 | ||
Investments (excluding funds for retiree health benefits) | 1,432 | 1,293 | ||
Level 3 [Member] | Private Equity [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total investments | 114 | 67 | ||
Level 3 [Member] | Real Estate [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total investments | 1,137 | 1,062 | ||
Level 3 [Member] | Hedge Funds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total investments | $224 | $206 |
Pension_Benefits_Reconciliatio
Pension Benefits - Reconciliation of Fair Value Balances for Net Assets (Detail) (Pension Benefits [Member], USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets at beginning of year | $9,135 | $7,800 | ||
FAIR VALUE OF PLAN ASSETS AT END OF YEAR | 11,495 | 10,755 | 9,135 | 7,800 |
Real Estate [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets at beginning of year | 1,062 | 833 | ||
Assets Still Held at Reporting Date - Unrealized Gains/(Losses) | 86 | 114 | ||
Assets Sold During the Year - Realized Gains/(Losses) | 20 | 1 | ||
Purchases Sales and Settlements | -31 | 114 | ||
Transfer In/(Out) of Level 3 | 0 | 0 | ||
FAIR VALUE OF PLAN ASSETS AT END OF YEAR | 1,137 | 1,062 | ||
Private Equity [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets at beginning of year | 67 | 20 | ||
Assets Still Held at Reporting Date - Unrealized Gains/(Losses) | 12 | 5 | ||
Purchases Sales and Settlements | 35 | 42 | ||
Transfer In/(Out) of Level 3 | 0 | 0 | ||
FAIR VALUE OF PLAN ASSETS AT END OF YEAR | 114 | 67 | ||
Hedge Funds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets at beginning of year | 206 | |||
Assets Still Held at Reporting Date - Unrealized Gains/(Losses) | 11 | 6 | ||
Purchases Sales and Settlements | 7 | 200 | ||
Transfer In/(Out) of Level 3 | 0 | 0 | ||
FAIR VALUE OF PLAN ASSETS AT END OF YEAR | 224 | 206 | ||
Investments [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets at beginning of year | 1,335 | 853 | ||
Assets Still Held at Reporting Date - Unrealized Gains/(Losses) | 109 | 125 | ||
Assets Sold During the Year - Realized Gains/(Losses) | 20 | 1 | ||
Purchases Sales and Settlements | 11 | 356 | ||
Transfer In/(Out) of Level 3 | 0 | 0 | ||
FAIR VALUE OF PLAN ASSETS AT END OF YEAR | 1,475 | 1,335 | ||
Funds for Retiree Health Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets at beginning of year | -42 | -31 | ||
Assets Still Held at Reporting Date - Unrealized Gains/(Losses) | -1 | -3 | ||
Purchases Sales and Settlements | -8 | |||
Transfer In/(Out) of Level 3 | 0 | 0 | ||
FAIR VALUE OF PLAN ASSETS AT END OF YEAR | -43 | -42 | ||
Investments (Excluding Funds for Retiree Health Benefits) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets at beginning of year | 1,293 | 822 | ||
Assets Still Held at Reporting Date - Unrealized Gains/(Losses) | 108 | 122 | ||
Assets Sold During the Year - Realized Gains/(Losses) | 20 | 1 | ||
Purchases Sales and Settlements | 11 | 348 | ||
Transfer In/(Out) of Level 3 | 0 | 0 | ||
FAIR VALUE OF PLAN ASSETS AT END OF YEAR | $1,432 | $1,293 |
Pension_Benefits_Schedule_of_E1
Pension Benefits - Schedule of Employer Contribution to Defined Savings Plan (Detail) (Pension Benefits [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | |||
Employer contribution to the defined savings plan | $32 | $30 | $23 |
CECONY [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer contribution to the defined savings plan | $27 | $26 | $21 |
Other_Postretirement_Benefits_1
Other Postretirement Benefits - Net Periodic Postretirement Benefit Costs (Detail) (Other Postretirement Benefits [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $19 | $23 | $26 |
Interest cost on accumulated other postretirement benefit obligation | 60 | 54 | 73 |
Expected return on plan assets | -77 | -77 | -85 |
Recognition of net actuarial loss | 57 | 65 | 98 |
Recognition of prior service cost | -19 | -27 | -21 |
Recognition of transition obligation | 2 | ||
NET PERIODIC BENEFIT COST | 40 | 38 | 93 |
Cost capitalized | -15 | -15 | -32 |
Reconciliation to rate level | 10 | 58 | 20 |
Cost charged to operating expenses | 35 | 81 | 81 |
CECONY [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 15 | 18 | 21 |
Interest cost on accumulated other postretirement benefit obligation | 52 | 46 | 63 |
Expected return on plan assets | -68 | -68 | -75 |
Recognition of net actuarial loss | 51 | 57 | 87 |
Recognition of prior service cost | -15 | -23 | -18 |
Recognition of transition obligation | 2 | ||
NET PERIODIC BENEFIT COST | 35 | 30 | 80 |
Cost capitalized | -14 | -12 | -28 |
Reconciliation to rate level | 2 | 50 | 16 |
Cost charged to operating expenses | $23 | $68 | $68 |
Other_Postretirement_Benefits_2
Other Postretirement Benefits - Schedule of Funded Status (Detail) (Other Postretirement Benefits [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CHANGE IN BENEFIT OBLIGATION | |||
Benefit obligation at beginning of year | $1,395 | $1,454 | $1,756 |
Service cost | 19 | 23 | 26 |
Interest cost on accumulated postretirement benefit obligation | 60 | 54 | 73 |
Amendments | -12 | -127 | |
Net actuarial loss/(gain) | 47 | -42 | -175 |
Benefits paid and administrative expenses | -134 | -136 | -146 |
Participant contributions | 36 | 38 | 37 |
Medicare prescription subsidy | 4 | 10 | |
BENEFIT OBLIGATION AT END OF YEAR | 1,411 | 1,395 | 1,454 |
CHANGE IN PLAN ASSETS | |||
Fair value of plan assets at beginning of year | 1,113 | 1,047 | 947 |
Actual return on plan assets | 59 | 153 | 124 |
Employer contributions | 7 | 9 | 83 |
EGWP payments | 12 | 8 | |
Participant contributions | 36 | 38 | 37 |
Benefits paid | -143 | -142 | -144 |
FAIR VALUE OF PLAN ASSETS AT END OF YEAR | 1,084 | 1,113 | 1,047 |
FUNDED STATUS | -327 | -282 | -407 |
Unrecognized net loss | 78 | 70 | 251 |
Unrecognized prior service costs | -71 | -78 | -105 |
CECONY [Member] | |||
CHANGE IN BENEFIT OBLIGATION | |||
Benefit obligation at beginning of year | 1,198 | 1,238 | 1,511 |
Service cost | 15 | 18 | 21 |
Interest cost on accumulated postretirement benefit obligation | 52 | 46 | 63 |
Amendments | -89 | ||
Net actuarial loss/(gain) | 28 | -20 | -178 |
Benefits paid and administrative expenses | -125 | -126 | -134 |
Participant contributions | 35 | 38 | 36 |
Medicare prescription subsidy | 4 | 8 | |
BENEFIT OBLIGATION AT END OF YEAR | 1,203 | 1,198 | 1,238 |
CHANGE IN PLAN ASSETS | |||
Fair value of plan assets at beginning of year | 977 | 922 | 840 |
Actual return on plan assets | 54 | 134 | 109 |
Employer contributions | 7 | 9 | 71 |
EGWP payments | 11 | 7 | |
Participant contributions | 35 | 38 | 36 |
Benefits paid | -134 | -133 | -134 |
FAIR VALUE OF PLAN ASSETS AT END OF YEAR | 950 | 977 | 922 |
FUNDED STATUS | -253 | -221 | -316 |
Unrecognized net loss | 45 | 54 | 197 |
Unrecognized prior service costs | ($46) | ($61) | ($84) |
Other_Postretirement_Benefits_3
Other Postretirement Benefits - Additional Information (Detail) (Other Postretirement Benefits [Member], USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | ||
Increase (decrease) in postretirement benefit obligations | $102 | |
Reduction to postretirement health benefit obligation recorded as actuarial gain | 306 | |
Increase in liability for other postretirement benefits | 45 | |
Increase to regulatory assets | 14 | |
Charge to OCI | 3 | |
Net losses unrecognized to be amortized | 33 | |
Prior service cost unrecognized to be amortized | -20 | |
Health care cost trend rate for net periodic benefit cost, current | 5.50% | |
Health care cost trend rate for net periodic benefit cost | 4.50% | |
Year for final trend rate for net periodic benefit cost | 2018 | |
Health care cost trend rate for benefit obligations, current | 5.25% | |
Health care cost trend rate for benefit obligations | 4.50% | |
Year for final trend rate for benefit obligations | 2018 | |
Expected contributions | 6 | |
Maximum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Increase (decrease) in postretirement benefit obligations | 10 | |
CECONY [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Increase (decrease) in postretirement benefit obligations | 25 | |
Increase in liability for other postretirement benefits | 32 | |
Increase to regulatory assets | 6 | |
Charge to OCI | 2 | |
Net losses unrecognized to be amortized | 29 | |
Prior service cost unrecognized to be amortized | -14 | |
Expected contributions | $6 |
Other_Postretirement_Benefits_4
Other Postretirement Benefits - Schedule of Actuarial Assumptions (Detail) (Other Postretirement Benefits [Member]) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Expected return on plan assets | 7.75% | 7.75% | 8.50% |
CECONY [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate, benefit obligations | 3.75% | 4.50% | 3.75% |
Discount rate, net periodic benefit cost | 4.50% | 3.75% | 4.55% |
O&R [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate, benefit obligations | 3.85% | 4.75% | 4.05% |
Discount rate, net periodic benefit cost | 4.75% | 4.05% | 4.55% |
Other_Postretirement_Benefits_5
Other Postretirement Benefits - Schedule of Change of Assumed Health Care Cost Trend Rate (Detail) (Scenario, Forecast [Member], Other Postretirement Benefits [Member], USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | |
Effect on accumulated other postretirement benefit obligation, Increase | ($21) |
Effect on service cost and interest cost components for 2014, Increase | -2 |
Effect on accumulated other postretirement benefit obligation, Decrease | 40 |
Effect on service cost and interest cost components for 2014, Decrease | 1 |
CECONY [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Effect on accumulated other postretirement benefit obligation, Increase | -43 |
Effect on service cost and interest cost components for 2014, Increase | -4 |
Effect on accumulated other postretirement benefit obligation, Decrease | 57 |
Effect on service cost and interest cost components for 2014, Decrease | $3 |
Other_Postretirement_Benefits_6
Other Postretirement Benefits - Schedule of Expected Benefit Payments (Detail) (Other Postretirement Benefits [Member], USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Defined Benefit Plan Disclosure [Line Items] | |
2015 - Benefit Payments | $99 |
2016 - Benefit Payments | 95 |
2017 - Benefit Payments | 94 |
2018 - Benefit Payments | 92 |
2019 - Benefit Payments | 89 |
2020-2024 - Benefit Payments | 419 |
CECONY [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2015 - Benefit Payments | 89 |
2016 - Benefit Payments | 85 |
2017 - Benefit Payments | 84 |
2018 - Benefit Payments | 82 |
2019 - Benefit Payments | 79 |
2020-2024 - Benefit Payments | $364 |
Other_Postretirement_Benefits_7
Other Postretirement Benefits - Schedule of Plan Assets Allocations (Detail) (CECONY [Member], Other Postretirement Benefits [Member]) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Plan Assets | 100.00% | 100.00% | 100.00% |
Equity [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan Assets | 59.00% | 61.00% | 62.00% |
Debt Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan Assets | 41.00% | 39.00% | 38.00% |
Scenario, Forecast [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Allocation Range, Total | 100.00% | ||
Scenario, Forecast [Member] | Equity [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Allocation, Minimum | 57.00% | ||
Target Allocation, Maximum | 73.00% | ||
Scenario, Forecast [Member] | Debt Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Allocation, Minimum | 26.00% | ||
Target Allocation, Maximum | 44.00% |
Other_Postretirement_Benefits_8
Other Postretirement Benefits - Schedule of Fair Values of Plan Assets (Detail) (Other Postretirement Benefits [Member], USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Defined Benefit Plan Disclosure [Line Items] | ||||
Total investments | $725 | $743 | ||
Funds for retiree health benefits | 358 | 372 | ||
Investments (including funds for retiree health benefits) | 1,083 | 1,115 | ||
Pending activities | 1 | -2 | ||
Total fair value of plan net assets | 1,084 | 1,113 | 1,047 | 947 |
Equity [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total investments | 428 | 450 | ||
Other Fixed Income Debt [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total investments | 286 | 286 | ||
Cash and Cash Equivalents [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total investments | 11 | 7 | ||
Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Funds for retiree health benefits | 184 | 185 | ||
Investments (including funds for retiree health benefits) | 184 | 185 | ||
Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total investments | 725 | 743 | ||
Funds for retiree health benefits | 131 | 145 | ||
Investments (including funds for retiree health benefits) | 856 | 888 | ||
Level 2 [Member] | Equity [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total investments | 428 | 450 | ||
Level 2 [Member] | Other Fixed Income Debt [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total investments | 286 | 286 | ||
Level 2 [Member] | Cash and Cash Equivalents [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total investments | 11 | 7 | ||
Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Funds for retiree health benefits | 43 | 42 | ||
Investments (including funds for retiree health benefits) | $43 | $42 |
Other_Postretirement_Benefits_9
Other Postretirement Benefits - Reconciliation of Fair Value Balances for Net Assets (Detail) (Other Postretirement Benefits [Member], USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets at beginning of year | $1,047 | $947 | ||
FAIR VALUE OF PLAN ASSETS AT END OF YEAR | 1,084 | 1,113 | 1,047 | 947 |
Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Assets Sold During the Year - Realized Gains/(Losses) | 0 | 0 | ||
Transfers (In/Out) of Level 3 | 0 | 0 | ||
Level 3 [Member] | Funds for Retiree Health Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets at beginning of year | 42 | 31 | ||
Assets Still Held at Reporting Date - Unrealized Gains/(Losses) | 1 | 3 | ||
Assets Sold During the Year - Realized Gains/(Losses) | 0 | 0 | ||
Purchases Sales and Settlements | 8 | |||
Transfers (In/Out) of Level 3 | 0 | 0 | ||
FAIR VALUE OF PLAN ASSETS AT END OF YEAR | 43 | 42 | ||
Level 3 [Member] | Investments (including funds for retiree health benefits) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets at beginning of year | 42 | 31 | ||
Assets Still Held at Reporting Date - Unrealized Gains/(Losses) | 1 | 3 | ||
Assets Sold During the Year - Realized Gains/(Losses) | 0 | 0 | ||
Purchases Sales and Settlements | 8 | |||
Transfers (In/Out) of Level 3 | 0 | 0 | ||
FAIR VALUE OF PLAN ASSETS AT END OF YEAR | $43 | $42 |
Environmental_Matters_Accrued_
Environmental Matters - Accrued Liabilities and Regulatory Assets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Accrued Liabilities: | ||
Accrued Liabilities | $764 | $749 |
Regulatory assets | 9,304 | 7,230 |
Manufactured Gas Plant Sites [Member] | ||
Accrued Liabilities: | ||
Accrued Liabilities | 684 | 665 |
Other Superfund Sites [Member] | ||
Accrued Liabilities: | ||
Accrued Liabilities | 80 | 84 |
Superfund Sites [Member] | ||
Accrued Liabilities: | ||
Accrued Liabilities | 764 | 749 |
Regulatory assets | 925 | 938 |
CECONY [Member] | ||
Accrued Liabilities: | ||
Accrued Liabilities | 666 | 644 |
Regulatory assets | 8,613 | 6,665 |
CECONY [Member] | Manufactured Gas Plant Sites [Member] | ||
Accrued Liabilities: | ||
Accrued Liabilities | 587 | 562 |
CECONY [Member] | Other Superfund Sites [Member] | ||
Accrued Liabilities: | ||
Accrued Liabilities | 79 | 82 |
CECONY [Member] | Superfund Sites [Member] | ||
Accrued Liabilities: | ||
Accrued Liabilities | 666 | 644 |
Regulatory assets | $820 | $830 |
Environmental_Matters_Addition
Environmental Matters - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Site Contingency [Line Items] | ||
Remediation cost estimate | $29,000,000 | $41,000,000 |
Asbestos Proceedings [Member] | ||
Site Contingency [Line Items] | ||
Estimated undiscounted asbestos liability | 8,000,000 | |
Superfund Sites [Member] | ||
Site Contingency [Line Items] | ||
Remediation cost estimate | 39,000,000 | |
Superfund Sites [Member] | Manufactured Gas Plant Sites [Member] | Maximum [Member] | ||
Site Contingency [Line Items] | ||
Estimated aggregate undiscounted potential liability related environmental contaminants | 2,700,000,000 | |
CECONY [Member] | ||
Site Contingency [Line Items] | ||
Remediation cost estimate | 20,000,000 | 35,000,000 |
CECONY [Member] | Asbestos Proceedings [Member] | ||
Site Contingency [Line Items] | ||
Estimated undiscounted asbestos liability | 7,000,000 | |
Estimated undiscounted asbestos liability in year | 15 years | |
CECONY [Member] | Superfund Sites [Member] | ||
Site Contingency [Line Items] | ||
Remediation cost estimate | 35,000,000 | |
CECONY [Member] | Superfund Sites [Member] | Manufactured Gas Plant Sites [Member] | Maximum [Member] | ||
Site Contingency [Line Items] | ||
Estimated aggregate undiscounted potential liability related environmental contaminants | $2,500,000,000 |
Environmental_Matters_Environm
Environmental Matters - Environmental Remediation Costs (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Environmental Exit Cost [Line Items] | ||
Remediation costs incurred | $29 | $41 |
Insurance recoveries received | 7 | |
CECONY [Member] | ||
Environmental Exit Cost [Line Items] | ||
Remediation costs incurred | 20 | 35 |
Insurance recoveries received | $7 |
Environmental_Matters_Accrued_1
Environmental Matters - Accrued Liability for Asbestos Suits and Workers' Compensation Proceedings (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Site Contingency [Line Items] | ||
Regulatory assets | $9,304 | $7,230 |
Asbestos Suits [Member] | ||
Site Contingency [Line Items] | ||
Accrued liability | 8 | 8 |
Regulatory assets | 8 | 8 |
Workers Compensation Insurance [Member] | ||
Site Contingency [Line Items] | ||
Accrued liability | 83 | 87 |
Regulatory assets | 8 | 12 |
CECONY [Member] | ||
Site Contingency [Line Items] | ||
Regulatory assets | 8,613 | 6,665 |
CECONY [Member] | Asbestos Suits [Member] | ||
Site Contingency [Line Items] | ||
Accrued liability | 7 | 7 |
Regulatory assets | 7 | 7 |
CECONY [Member] | Workers Compensation Insurance [Member] | ||
Site Contingency [Line Items] | ||
Accrued liability | 78 | 82 |
Regulatory assets | $8 | $12 |
Other_Material_Contingencies_A
Other Material Contingencies - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | |
Jul. 31, 2007 | Dec. 31, 2014 | Dec. 31, 2013 | |
Person | People | ||
Lawsuits | |||
Guarantor Obligations [Line Items] | |||
Number of person died in steam ruptured | 1 | ||
Number of suits pending against the company | 90 | ||
Estimated accrued liability for suits | $50,000,000 | ||
Insurance receivable for suits | 50,000,000 | ||
Description of explosion and fire incident | On March 12, 2014, two multi-use five-story tall buildings located on Park Avenue between 116th and 117th Street in Manhattan were destroyed by an explosion and fire. CECONY had delivered gas to the buildings through service lines from a distribution main located below ground on Park Avenue. Eight people died and more than 48 people were injured. Additional buildings were also damaged. | ||
Number of people died in explosion and fire incident | 8 | ||
Number of people injured in explosion and fire incident | 48 | ||
Guarantee obligations maximum exposure | 2,547,000,000 | 1,331,000,000 | |
Ownership interest, percentage | 46.00% | ||
Estimated project cost percentage | 175.00% | ||
Manhattan Explosion and Fire [Member] | |||
Guarantor Obligations [Line Items] | |||
Number of suits pending against the company | 30 | ||
Other [Member] | |||
Guarantor Obligations [Line Items] | |||
Guarantee obligations maximum exposure | 30,000,000 | ||
Electric provider obligation to Public Utility Commission of Texas | 5,000,000 | ||
Indemnity agreements amount | 25,000,000 | ||
Con Edison Development [Member] | |||
Guarantor Obligations [Line Items] | |||
Percentage of variable interests | 50.00% | ||
Number of guaranteed payments | 2 | ||
Con Edison Development [Member] | Guarantee One [Member] | |||
Guarantor Obligations [Line Items] | |||
Guarantee obligations maximum exposure | 63,000,000 | ||
Con Edison Development [Member] | Guarantee Two [Member] | |||
Guarantor Obligations [Line Items] | |||
Guarantee obligations maximum exposure | 31,000,000 | ||
Construction and Operation of Solar Energy Facilities [Member] | |||
Guarantor Obligations [Line Items] | |||
Guarantees issued | $3,000,000 |
Other_Material_Contingencies_T1
Other Material Contingencies - Total Guarantees (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Guarantor Obligations [Line Items] | ||
Total guarantees, by type and term | $2,547,000,000 | $1,331,000,000 |
NY Transco [Member] | ||
Guarantor Obligations [Line Items] | ||
Total guarantees, by type and term | 1,361,000,000 | |
Energy Transactions [Member] | ||
Guarantor Obligations [Line Items] | ||
Total guarantees, by type and term | 901,000,000 | |
Renewable Electric Production Projects [Member] | ||
Guarantor Obligations [Line Items] | ||
Total guarantees, by type and term | 255,000,000 | |
Other [Member] | ||
Guarantor Obligations [Line Items] | ||
Total guarantees, by type and term | 30,000,000 | |
0 - 3 years [Member] | ||
Guarantor Obligations [Line Items] | ||
Total guarantees, by type and term | 2,413,000,000 | |
0 - 3 years [Member] | NY Transco [Member] | ||
Guarantor Obligations [Line Items] | ||
Total guarantees, by type and term | 1,361,000,000 | |
0 - 3 years [Member] | Energy Transactions [Member] | ||
Guarantor Obligations [Line Items] | ||
Total guarantees, by type and term | 774,000,000 | |
0 - 3 years [Member] | Renewable Electric Production Projects [Member] | ||
Guarantor Obligations [Line Items] | ||
Total guarantees, by type and term | 248,000,000 | |
0 - 3 years [Member] | Other [Member] | ||
Guarantor Obligations [Line Items] | ||
Total guarantees, by type and term | 30,000,000 | |
4 - 10 years [Member] | ||
Guarantor Obligations [Line Items] | ||
Total guarantees, by type and term | 31,000,000 | |
4 - 10 years [Member] | Energy Transactions [Member] | ||
Guarantor Obligations [Line Items] | ||
Total guarantees, by type and term | 31,000,000 | |
Greater than 10 years [Member] | ||
Guarantor Obligations [Line Items] | ||
Total guarantees, by type and term | 103,000,000 | |
Greater than 10 years [Member] | Energy Transactions [Member] | ||
Guarantor Obligations [Line Items] | ||
Total guarantees, by type and term | 96,000,000 | |
Greater than 10 years [Member] | Renewable Electric Production Projects [Member] | ||
Guarantor Obligations [Line Items] | ||
Total guarantees, by type and term | $7,000,000 |
Electricity_Purchase_Agreement2
Electricity Purchase Agreements - Summary of Significant Terms of Electricity Purchase Agreements (Detail) (CECONY [Member]) | 12 Months Ended |
Dec. 31, 2014 | |
MW | |
Brooklyn Navy Yard [Member] | |
Long-term Contract for Purchase of Electric Power [Line Items] | |
Plant Output (MW) | 322 |
Contracted Output (MW) | 291 |
Contract Start Date | Nov-96 |
Contract Term (Years) | 40 years |
Linden Cogeneration [Member] | |
Long-term Contract for Purchase of Electric Power [Line Items] | |
Plant Output (MW) | 1,035 |
Contracted Output (MW) | 607 |
Contract Start Date | May-92 |
Contract Term (Years) | 25 years |
Indeck Corinth [Member] | |
Long-term Contract for Purchase of Electric Power [Line Items] | |
Plant Output (MW) | 147 |
Contracted Output (MW) | 131 |
Contract Start Date | Jul-95 |
Contract Term (Years) | 20 years |
Indian Point [Member] | |
Long-term Contract for Purchase of Electric Power [Line Items] | |
Plant Output (MW) | 2,311 |
Contracted Output (MW) | 500 |
Contract Start Date | Aug-01 |
Contract Term (Years) | 16 years |
Astoria Energy [Member] | |
Long-term Contract for Purchase of Electric Power [Line Items] | |
Plant Output (MW) | 640 |
Contracted Output (MW) | 500 |
Contract Start Date | May-06 |
Contract Term (Years) | 10 years |
Electricity_Purchase_Agreement3
Electricity Purchase Agreements - Summary of Estimated Capacity and Other Fixed Payments (Detail) (CECONY [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Long-term Contract for Purchase of Electric Power [Line Items] | |||
Fixed payment under the contracts | $1,312 | $1,282 | $1,164 |
2015 [Member] | |||
Long-term Contract for Purchase of Electric Power [Line Items] | |||
Fixed payment under the contracts | 252 | ||
2016 [Member] | |||
Long-term Contract for Purchase of Electric Power [Line Items] | |||
Fixed payment under the contracts | 186 | ||
2017 [Member] | |||
Long-term Contract for Purchase of Electric Power [Line Items] | |||
Fixed payment under the contracts | 135 | ||
Year 2018 [Member] | |||
Long-term Contract for Purchase of Electric Power [Line Items] | |||
Fixed payment under the contracts | 62 | ||
2019 [Member] | |||
Long-term Contract for Purchase of Electric Power [Line Items] | |||
Fixed payment under the contracts | 53 | ||
All Years Thereafter [Member] | |||
Long-term Contract for Purchase of Electric Power [Line Items] | |||
Fixed payment under the contracts | $820 |
Electricity_Purchase_Agreement4
Electricity Purchase Agreements - Summary of Capacity, Energy and Other Fixed Payments (Detail) (CECONY [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Long-term Contract for Purchase of Electric Power [Line Items] | |||
Capacity, energy and other fixed payments | $1,312 | $1,282 | $1,164 |
Brooklyn Navy Yard [Member] | |||
Long-term Contract for Purchase of Electric Power [Line Items] | |||
Capacity, energy and other fixed payments | 133 | 118 | 93 |
Linden Cogeneration [Member] | |||
Long-term Contract for Purchase of Electric Power [Line Items] | |||
Capacity, energy and other fixed payments | 381 | 346 | 297 |
Indeck Corinth [Member] | |||
Long-term Contract for Purchase of Electric Power [Line Items] | |||
Capacity, energy and other fixed payments | 80 | 79 | 66 |
Indian Point [Member] | |||
Long-term Contract for Purchase of Electric Power [Line Items] | |||
Capacity, energy and other fixed payments | 247 | 220 | 204 |
Astoria Energy [Member] | |||
Long-term Contract for Purchase of Electric Power [Line Items] | |||
Capacity, energy and other fixed payments | 230 | 183 | 181 |
Selkirk [Member] | |||
Long-term Contract for Purchase of Electric Power [Line Items] | |||
Capacity, energy and other fixed payments | 144 | 215 | 196 |
Independence [Member] | |||
Long-term Contract for Purchase of Electric Power [Line Items] | |||
Capacity, energy and other fixed payments | $97 | $121 | $127 |
Leases_Schedule_of_Capital_Lea
Leases - Schedule of Capital Leases (Detail) (Common [Member], USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Leases | ||
Utility Plant | $3 | $3 |
CECONY [Member] | ||
Leases | ||
Utility Plant | $1 | $2 |
Leases_Additional_Information_
Leases - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Operating Leased Assets [Line Items] | ||||
Accumulated amortization | $1,800,000 | $1,000,000 | ||
Lease In/Lease Out total investment | 259,000,000 | |||
Lease In/Lease Out total financed by equity | 93,000,000 | |||
Lease In/Lease Out total financed by long-term debt | 166,000,000 | |||
Company's net investment in LILO transactions | 0 | -76,000,000 | ||
Gross investment in leverage leases | 228,000,000 | |||
Deferred tax liabilities | 304,000,000 | |||
Estimated charge after-tax | 150,000,000 | |||
Gain from LILO transaction termination | 55,000,000 | |||
Decrease in net income | 1,000,000 | 95,000,000 | ||
Defray of interest charges relating to potential tax liability | 447,000,000 | |||
Refund from IRS | 10,000,000 | |||
Settlement of tax and interest | 38,000,000 | |||
Transaction One [Member] | ||||
Operating Leased Assets [Line Items] | ||||
Returned deposit from Internal Revenue Service (IRS) | 125,000,000 | |||
Transaction Two [Member] | ||||
Operating Leased Assets [Line Items] | ||||
Returned deposit from Internal Revenue Service (IRS) | 48,000,000 | |||
CECONY [Member] | ||||
Operating Leased Assets [Line Items] | ||||
Accumulated amortization | $800,000 | $600,000 |
Leases_Future_Minimum_Lease_Co
Leases - Future Minimum Lease Commitments (Detail) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Capital Leased Assets [Line Items] | |
2015 | $1 |
2016 | 1 |
2017 | 0 |
2018 | 0 |
2019 | 0 |
All years thereafter | 0 |
Total | 2 |
Less: amount representing interest | 1 |
Present value of net minimum lease payment | 1 |
CECONY [Member] | |
Capital Leased Assets [Line Items] | |
2015 | 1 |
2016 | 1 |
2017 | 0 |
2018 | 0 |
2019 | 0 |
All years thereafter | 0 |
Total | 2 |
Less: amount representing interest | 1 |
Present value of net minimum lease payment | $1 |
Leases_Future_Minimum_Rental_P
Leases - Future Minimum Rental Payments for Operating Leases (Detail) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Operating Leased Assets [Line Items] | |
2015 | $18 |
2016 | 17 |
2017 | 16 |
2018 | 16 |
2019 | 14 |
All years thereafter | 72 |
Total | 153 |
CECONY [Member] | |
Operating Leased Assets [Line Items] | |
2015 | 14 |
2016 | 13 |
2017 | 12 |
2018 | 12 |
2019 | 10 |
All years thereafter | 51 |
Total | $112 |
Leases_Schedule_of_Leveraged_L
Leases - Schedule of Leveraged Lease Transactions Effect on Consolidated Income Statement (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Operating Leased Assets [Line Items] | ||
Increase/(decrease) in net income | ($1) | ($95) |
Non Utility Operating Revenue [Member] | ||
Operating Leased Assets [Line Items] | ||
Increase/(decrease) in net income | -27 | |
Interest Expense [Member] | ||
Operating Leased Assets [Line Items] | ||
Increase/(decrease) in net income | 13 | -131 |
Income Tax Benefit/(Expense) [Member] | ||
Operating Leased Assets [Line Items] | ||
Increase/(decrease) in net income | ($14) | $63 |
Goodwill_Additional_Informatio
Goodwill - Additional Information (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Goodwill [Line Items] | ||
Goodwill | $429 | $429 |
O&R [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 406 | 406 |
CECONY [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 245 | 245 |
O&R [Member] | ||
Goodwill [Line Items] | ||
Goodwill | 161 | 161 |
Energy Services Acquired [Member] | ||
Goodwill [Line Items] | ||
Goodwill | $23 | $23 |
Income_Tax_Schedule_of_Compone
Income Tax - Schedule of Components of Income Tax (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax [Line Items] | |||
State - Current | $59 | $151 | $29 |
State - Deferred | 61 | -70 | 97 |
Federal - Current | -9 | 285 | -13 |
Federal - Deferred | 463 | 115 | 493 |
Amortization of investment tax credits | -6 | -5 | -6 |
Total income tax expense | 568 | 476 | 600 |
CECONY [Member] | |||
Income Tax [Line Items] | |||
State - Current | 66 | 111 | 53 |
State - Deferred | 65 | -14 | 53 |
Federal - Current | 158 | 187 | 110 |
Federal - Deferred | 271 | 241 | 318 |
Amortization of investment tax credits | -5 | -5 | -5 |
Total income tax expense | $555 | $520 | $529 |
Income_Tax_Schedule_of_Differe
Income Tax - Schedule of Differences on Deferred Tax Assets and Liabilities (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Contingency [Line Items] | ||
Property basis differences | $7,510,000,000 | $7,012,000,000 |
Unrecognized pension and other postretirement costs | 1,968,000,000 | 1,109,000,000 |
Regulatory asset - future income tax | 910,000,000 | 871,000,000 |
Environmental remediation costs | 376,000,000 | 381,000,000 |
Deferred storm costs | 129,000,000 | 179,000,000 |
Equity investments | 168,000,000 | 21,000,000 |
Other regulatory assets | 347,000,000 | 402,000,000 |
Unamortized investment tax credits | 126,000,000 | 43,000,000 |
Total deferred tax liabilities and investment tax credits | 11,534,000,000 | 10,018,000,000 |
Accrued pension and other postretirement costs | 1,306,000,000 | 458,000,000 |
Regulatory liabilities | 615,000,000 | 604,000,000 |
Superfund and other environmental costs | 306,000,000 | 301,000,000 |
Asset retirement obligations | 77,000,000 | 58,000,000 |
Loss carryforwards | 21,000,000 | 12,000,000 |
Loss carryforwards, valuation reserve | -11,000,000 | -12,000,000 |
Other | 272,000,000 | 253,000,000 |
Total deferred tax assets | 2,586,000,000 | 1,674,000,000 |
Net deferred tax liabilities and investment tax credits | 8,948,000,000 | 8,344,000,000 |
Deferred income taxes and investment tax credits - noncurrent | 9,076,000,000 | 8,466,000,000 |
Deferred tax assets - current | -128,000,000 | -122,000,000 |
Net deferred tax liabilities and investment tax credits | 8,948,000,000 | 8,344,000,000 |
CECONY [Member] | ||
Income Tax Contingency [Line Items] | ||
Property basis differences | 6,938,000,000 | 6,424,000,000 |
Unrecognized pension and other postretirement costs | 1,872,000,000 | 1,060,000,000 |
Regulatory asset - future income tax | 863,000,000 | 825,000,000 |
Environmental remediation costs | 333,000,000 | 337,000,000 |
Deferred storm costs | 91,000,000 | 136,000,000 |
Other regulatory assets | 300,000,000 | 364,000,000 |
Unamortized investment tax credits | 37,000,000 | 42,000,000 |
Total deferred tax liabilities and investment tax credits | 10,434,000,000 | 9,188,000,000 |
Accrued pension and other postretirement costs | 1,155,000,000 | 364,000,000 |
Regulatory liabilities | 574,000,000 | 569,000,000 |
Superfund and other environmental costs | 264,000,000 | 256,000,000 |
Asset retirement obligations | 75,000,000 | 58,000,000 |
Other | 203,000,000 | 209,000,000 |
Total deferred tax assets | 2,271,000,000 | 1,456,000,000 |
Net deferred tax liabilities and investment tax credits | 8,163,000,000 | 7,732,000,000 |
Deferred income taxes and investment tax credits - noncurrent | 8,257,000,000 | 7,832,000,000 |
Deferred tax assets - current | -94,000,000 | -100,000,000 |
Net deferred tax liabilities and investment tax credits | $8,163,000,000 | $7,732,000,000 |
Income_Tax_Schedule_of_Income_
Income Tax - Schedule of Income Tax Reconciliation (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Contingency [Line Items] | |||
Federal | 35.00% | 35.00% | 35.00% |
State income tax | 5.00% | 4.00% | 4.00% |
Cost of removal | -5.00% | -5.00% | -4.00% |
Manufacturing deduction | -1.00% | ||
Other | -1.00% | -2.00% | -1.00% |
Effective tax rate | 34.00% | 31.00% | 34.00% |
CECONY [Member] | |||
Income Tax Contingency [Line Items] | |||
Federal | 35.00% | 35.00% | 35.00% |
State income tax | 5.00% | 5.00% | 4.00% |
Cost of removal | -5.00% | -5.00% | -4.00% |
Other | -1.00% | -1.00% | -1.00% |
Effective tax rate | 34.00% | 34.00% | 34.00% |
Income_Tax_Additional_Informat
Income Tax - Additional Information (Detail) (USD $) | 1 Months Ended | 12 Months Ended | 1 Months Ended | ||
Mar. 31, 2014 | Feb. 28, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Jan. 31, 2015 | |
Operating Loss Carryforwards [Line Items] | |||||
Net operating loss carryforward expire date | 2019 through 2034 | ||||
Deferred tax asset, loss carryforward | $21,000,000 | $12,000,000 | |||
Corporate franchise tax rate | 6.50% | 7.10% | |||
Decrease in accumulated deferred tax liabilities | 74,000,000 | ||||
Decrease in regulatory asset | 11,000,000 | ||||
Increase in regulatory liability | 62,000,000 | ||||
Expired depreciation bonus percentage | 50.00% | ||||
Increase in estimated prior year liabilities | 27,000,000 | 253,000,000 | |||
Effective income tax rate reconciliation ,uncertainty of taxes | 26,000,000 | ||||
Effective income tax rate reconciliation, uncertainty net of federal taxes | 17,000,000 | ||||
Interest charges related to uncertain tax positions | 121,000,000 | ||||
Reduced interest expenses | 10,000,000 | ||||
Interest charges related to uncertain tax position, LILO transaction | 131,000,000 | ||||
Amount of interest and penalties in their consolidated balance sheets | 0 | 0 | |||
Unrecognized tax benefits amount | 34,000,000 | ||||
Unrecognized tax benefits, net of federal taxes | 22,000,000 | ||||
Subsequent Event [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Income tax refund requested | 224,000,000 | ||||
CECONY [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Decrease in accumulated deferred tax liabilities | 69,000,000 | ||||
Decrease in regulatory asset | 10,000,000 | ||||
Increase in regulatory liability | 59,000,000 | ||||
Increase in estimated prior year liabilities | 2,000,000 | ||||
Effective income tax rate reconciliation ,uncertainty of taxes | 2,000,000 | ||||
Effective income tax rate reconciliation, uncertainty net of federal taxes | 1,000,000 | ||||
Unrecognized tax benefits amount | 2,000,000 | ||||
Unrecognized tax benefits, net of federal taxes | 1,000,000 | ||||
CECONY [Member] | Subsequent Event [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Income tax refund requested | 128,000,000 | ||||
New York City [Member] | |||||
Operating Loss Carryforwards [Line Items] | |||||
Deferred tax asset, valuation allowance | $11,000,000 |
Income_Tax_Summary_of_Unrecogn
Income Tax - Summary of Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Contingency [Line Items] | |||
Balance at January 1 | $9 | $86 | $130 |
Additions based on tax positions related to the current year | 5 | 12 | |
Additions based on tax positions of prior years | 27 | 253 | |
Reductions for tax positions of prior years | -2 | -86 | -57 |
Settlements | -249 | 1 | |
Balance at December 31 | 34 | 9 | 86 |
CECONY [Member] | |||
Income Tax Contingency [Line Items] | |||
Balance at January 1 | 74 | 114 | |
Additions based on tax positions related to the current year | 11 | ||
Additions based on tax positions of prior years | 2 | ||
Reductions for tax positions of prior years | -74 | -52 | |
Settlements | 1 | ||
Balance at December 31 | $2 | $74 |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock option awards, LTIP | 5,000,000 | ||
Stock options vesting period | 3 years | ||
Income tax benefit | $12,000,000 | $11,000,000 | $8,000,000 |
Number of units issued | 37,972 | ||
LTIP Weighted Average Price | $55.51 | ||
Maximum employer contribution match | 1 | ||
Amount employee contribution for employer match | 9 | ||
Maximum employee investment per year | 25,000 | ||
Maximum percentage allowed to invest | 20.00% | ||
Shares purchased on the open market | 708,276 | 864,281 | 665,718 |
Weighted average share price per share, on shares purchased on open market | $56.23 | $57.24 | $59.72 |
Time Based Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total expense recognized in future periods | 2,000,000 | ||
Weighted average period | 1 year | ||
CECONY [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Income tax benefit | 10,000,000 | 10,000,000 | 7,000,000 |
CECONY [Member] | Time Based Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total expense recognized in future periods | 2,000,000 | ||
Weighted average period | 1 year | ||
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Income tax benefit | 1,000,000 | 10,000,000 | |
Restricted Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options vesting period | 3 years | ||
TSR Portion [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Adjustment percentage used for Performance awards | 50.00% | ||
Factor used for adjustment of Performance awards, low end | 0.00% | ||
Factor used for adjustment of Performance awards, high end | 200.00% | ||
Non-TSR Portion [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Adjustment percentage used for Performance awards | 50.00% | ||
Factor used for adjustment of Performance awards, low end | 0.00% | ||
Factor used for adjustment of Performance awards, high end | 200.00% | ||
Non-TSR Portion [Member] | Management Employees [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Factor used for adjustment of Performance awards, low end | 0.00% | ||
Factor used for adjustment of Performance awards, high end | 120.00% | ||
Performance-Based Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock received upon vesting | One share | ||
Compensation expense to be recognized | 25,000,000 | ||
Weighted average period | 1 year | ||
Performance-Based Restricted Stock [Member] | CECONY [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense to be recognized | $19,000,000 | ||
Weighted average period | 1 year | ||
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock option vesting period | 10 years |
StockBased_Compensation_StockB
Stock-Based Compensation - Stock-Based Compensation Expense (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $29 | $27 | $19 |
Income tax benefit | 12 | 11 | 8 |
Performance-Based Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 22 | 20 | 14 |
Time-Based Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 2 | 2 | 1 |
Non-Employee Director Deferred Stock Compensation [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 2 | 2 | 1 |
Employee Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 3 | 3 | 3 |
CECONY [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 26 | 25 | 18 |
Income tax benefit | 10 | 10 | 7 |
CECONY [Member] | Performance-Based Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 19 | 18 | 13 |
CECONY [Member] | Time-Based Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 2 | 2 | 1 |
CECONY [Member] | Non-Employee Director Deferred Stock Compensation [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 2 | 2 | 1 |
CECONY [Member] | Employee Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $3 | $3 | $3 |
StockBased_Compensation_Summar
Stock-Based Compensation - Summary of Status of Stock Options (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding Shares, Beginning Balance | 481,310 |
Exercised, Shares | -251,460 |
Forfeited, Shares | 0 |
Outstanding Shares, Ending Balance | 229,850 |
Weighted Average Exercise Price Outstanding, Beginning Balance | $43.38 |
Weighted Average Exercise Price, Exercised | $43.75 |
Weighted Average Exercise Price, Forfeited | $0 |
Weighted Average Exercise Price Outstanding, Ending Balance | $42.99 |
CECONY [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding Shares, Beginning Balance | 381,010 |
Exercised, Shares | -189,660 |
Forfeited, Shares | 0 |
Outstanding Shares, Ending Balance | 191,350 |
Weighted Average Exercise Price Outstanding, Beginning Balance | $43.34 |
Weighted Average Exercise Price, Exercised | $43.68 |
Weighted Average Exercise Price, Forfeited | $0 |
Weighted Average Exercise Price Outstanding, Ending Balance | $43 |
StockBased_Compensation_Summar1
Stock-Based Compensation - Summary of Status of Stock Options (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Weighted average remaining contractual life | 1 year |
StockBased_Compensation_Summar2
Stock-Based Compensation - Summary of Stock Options (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Aggregate intrinsic value | ||
Options outstanding | $5 | $6 |
Options exercised | 4 | 2 |
Cash received by Con Edison for payment of exercise price | 11 | 5 |
CECONY [Member] | ||
Aggregate intrinsic value | ||
Options outstanding | 4 | 5 |
Options exercised | 3 | 2 |
Cash received by Con Edison for payment of exercise price | $8 | $4 |
StockBased_Compensation_Assump
Stock-Based Compensation - Assumptions Used to Calculate Fair Value (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Risk-free interest rate, Minimum | 0.23% | 0.13% | 0.15% |
Risk-free interest rate, Maximum | 3.07% | 5.17% | 3.39% |
Expected term | 3 years | 3 years | 3 years |
Expected share price volatility | 13.14% | 13.52% | 15.27% |
StockBased_Compensation_Assump1
Stock-Based Compensation - Assumptions Used to Calculate Fair Value (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Expected volatility calculation period | 3 years |
StockBased_Compensation_Summar3
Stock-Based Compensation - Summary of Changes in Status of Performance RSUs' (Detail) (Performance-Based Restricted Stock [Member], USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Non-vested Units, Beginning Balance | 1,121,598 |
Granted, Units | 428,310 |
Vested, Units | -411,704 |
Forfeited, Units | -37,597 |
Non-vested Units, Ending Balance | 1,100,607 |
CECONY [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Non-vested Units, Beginning Balance | 897,052 |
Granted, Units | 342,001 |
Vested, Units | -323,483 |
Forfeited, Units | -35,047 |
Non-vested Units, Ending Balance | 880,523 |
TSR Portion [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted Average Grant Date Fair Value Non-vested, Beginning Balance | 49.32 |
Weighted Average Grant Date Fair Value, Granted | 25.34 |
Weighted Average Grant Date Fair Value, Vested | 43.84 |
Weighted Average Grant Date Fair Value, Forfeited | 40.9 |
Weighted Average Grant Date Fair Value Non-vested, Ending Balance | 42.33 |
TSR Portion [Member] | CECONY [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted Average Grant Date Fair Value Non-vested, Beginning Balance | 49.38 |
Weighted Average Grant Date Fair Value, Granted | 25.86 |
Weighted Average Grant Date Fair Value, Vested | 43.93 |
Weighted Average Grant Date Fair Value, Forfeited | 40.84 |
Weighted Average Grant Date Fair Value Non-vested, Ending Balance | 42.58 |
Non-TSR Portion [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted Average Grant Date Fair Value Non-vested, Beginning Balance | 55.31 |
Weighted Average Grant Date Fair Value, Granted | 53.65 |
Weighted Average Grant Date Fair Value, Vested | 50.05 |
Weighted Average Grant Date Fair Value, Forfeited | 55.97 |
Weighted Average Grant Date Fair Value Non-vested, Ending Balance | 56.61 |
Non-TSR Portion [Member] | CECONY [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted Average Grant Date Fair Value Non-vested, Beginning Balance | 55.42 |
Weighted Average Grant Date Fair Value, Granted | 53.71 |
Weighted Average Grant Date Fair Value, Vested | 50.08 |
Weighted Average Grant Date Fair Value, Forfeited | 55.95 |
Weighted Average Grant Date Fair Value Non-vested, Ending Balance | 56.7 |
StockBased_Compensation_Summar4
Stock-Based Compensation - Summary of Changes in Status of Performance RSUs' (Parenthetical) (Detail) (Performance-Based Restricted Stock [Member]) | 12 Months Ended |
Dec. 31, 2014 | |
TSR Portion [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Adjustment percentage used for Performance awards | 50.00% |
Non-TSR Portion [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Adjustment percentage used for Performance awards | 50.00% |
StockBased_Compensation_Summar5
Stock-Based Compensation - Summary of Changes in Status of Time-Based Awards (Detail) (Time Based Awards [Member], USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Non-vested Units, Beginning Balance | 66,580 |
Granted, Units | 22,990 |
Vested, Units | -20,900 |
Forfeited, Units | -3,247 |
Non-vested Units, Ending Balance | 65,423 |
Weighted Average Grant Date Fair Value Non-vested, Beginning Balance | $56.92 |
Weighted Average Grant Date Fair Value, Granted | $53.65 |
Weighted Average Grant Date Fair Value, Vested | $50.74 |
Weighted Average Grant Date Fair Value, Forfeited | $58.06 |
Weighted Average Grant Date Fair Value Non-vested, Ending Balance | $57.65 |
CECONY [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Non-vested Units, Beginning Balance | 63,030 |
Granted, Units | 21,790 |
Vested, Units | -19,800 |
Forfeited, Units | -2,847 |
Non-vested Units, Ending Balance | 62,173 |
Weighted Average Grant Date Fair Value Non-vested, Beginning Balance | $56.93 |
Weighted Average Grant Date Fair Value, Granted | $53.65 |
Weighted Average Grant Date Fair Value, Vested | $50.75 |
Weighted Average Grant Date Fair Value, Forfeited | $58.27 |
Weighted Average Grant Date Fair Value Non-vested, Ending Balance | $57.64 |
Financial_Information_by_Busin2
Financial Information by Business Segment - Financial Data for Business Segments (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||
Operating revenues | $12,919 | $12,354 | $12,188 |
Depreciation and amortization | 1,071 | 1,024 | 955 |
Operating income | 2,209 | 2,244 | 2,339 |
Interest charges | 591 | 719 | 604 |
Income taxes on operating income | 589 | 504 | 594 |
Total assets | 44,308 | 40,647 | 41,209 |
Construction expenditures | 2,721 | 2,648 | 2,538 |
CECONY [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 10,786 | 10,430 | 10,187 |
Depreciation and amortization | 991 | 946 | 894 |
Operating income | 2,139 | 2,060 | 2,093 |
Interest charges | 537 | 521 | 545 |
Income taxes on operating income | 562 | 531 | 514 |
Total assets | 39,637 | 36,258 | 36,885 |
Construction expenditures | 2,132 | 2,135 | 1,909 |
CECONY [Member] | Electric Transmission [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 781 | 749 | 710 |
Operating income | 1,712 | 1,595 | 1,693 |
Interest charges | 412 | 402 | 423 |
Income taxes on operating income | 425 | 380 | 393 |
Total assets | 30,421 | 27,673 | 28,339 |
Construction expenditures | 1,500 | 1,471 | 1,375 |
CECONY [Member] | Gas [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 132 | 130 | 120 |
Operating income | 314 | 362 | 346 |
Interest charges | 89 | 83 | 82 |
Income taxes on operating income | 88 | 112 | 99 |
Total assets | 6,530 | 6,008 | 5,925 |
Construction expenditures | 549 | 536 | 426 |
CECONY [Member] | Steam [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 78 | 67 | 64 |
Operating income | 113 | 103 | 54 |
Interest charges | 36 | 36 | 40 |
Income taxes on operating income | 49 | 39 | 22 |
Total assets | 2,686 | 2,577 | 2,621 |
Construction expenditures | 83 | 128 | 108 |
O&R [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 61 | 56 | 53 |
Operating income | 128 | 120 | 123 |
Interest charges | 35 | 37 | 31 |
Income taxes on operating income | 35 | 20 | 28 |
Total assets | 2,837 | 2,545 | 2,671 |
Construction expenditures | 142 | 135 | 137 |
O&R [Member] | Electric Transmission [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 46 | 41 | 38 |
Operating income | 103 | 87 | 83 |
Interest charges | 24 | 25 | 19 |
Income taxes on operating income | 29 | 13 | 17 |
Total assets | 2,042 | 1,898 | 1,960 |
Construction expenditures | 105 | 98 | 98 |
O&R [Member] | Gas [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 15 | 15 | 15 |
Operating income | 25 | 33 | 40 |
Interest charges | 10 | 11 | 10 |
Income taxes on operating income | 6 | 7 | 11 |
Total assets | 794 | 645 | 706 |
Construction expenditures | 37 | 37 | 39 |
O&R [Member] | Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Interest charges | 1 | 1 | 2 |
Total assets | 1 | 2 | 5 |
Competitive Energy Businesses [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 19 | 23 | 8 |
Operating income | -60 | 63 | 125 |
Interest charges | -8 | 135 | 1 |
Income taxes on operating income | -8 | -41 | 52 |
Total assets | 1,026 | 1,314 | 1,061 |
Construction expenditures | 447 | 378 | 492 |
Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | -1 | ||
Operating income | 2 | 1 | -2 |
Interest charges | 27 | 26 | 27 |
Income taxes on operating income | -6 | ||
Total assets | 808 | 530 | 592 |
Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 12,919 | 12,354 | 12,188 |
Operating Segments [Member] | CECONY [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 10,786 | 10,430 | 10,187 |
Operating Segments [Member] | CECONY [Member] | Electric Transmission [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 8,437 | 8,131 | 8,176 |
Operating Segments [Member] | CECONY [Member] | Gas [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 1,721 | 1,616 | 1,415 |
Operating Segments [Member] | CECONY [Member] | Steam [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 628 | 683 | 596 |
Operating Segments [Member] | O&R [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 892 | 833 | 795 |
Operating Segments [Member] | O&R [Member] | Electric Transmission [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 680 | 628 | 592 |
Operating Segments [Member] | O&R [Member] | Gas [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 212 | 205 | 203 |
Operating Segments [Member] | Competitive Energy Businesses [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 1,244 | 1,096 | 1,213 |
Operating Segments [Member] | Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | -3 | -5 | -7 |
Inter-Segment Revenues [Member] | CECONY [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | -106 | -103 | -97 |
Inter-Segment Revenues [Member] | CECONY [Member] | Electric Transmission [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 16 | 16 | 15 |
Inter-Segment Revenues [Member] | CECONY [Member] | Gas [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 6 | 5 | 5 |
Inter-Segment Revenues [Member] | CECONY [Member] | Steam [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | 84 | 82 | 77 |
Inter-Segment Revenues [Member] | Competitive Energy Businesses [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | -10 | 5 | 8 |
Inter-Segment Revenues [Member] | Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating revenues | $10 | ($5) | ($8) |
Financial_Information_by_Busin3
Financial Information by Business Segment - Financial Data for Business Segments (Parenthetical) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||
Income taxes on non-operating income | ($21) | ($28) | $6 |
CECONY [Member] | |||
Segment Reporting Information [Line Items] | |||
Income taxes on non-operating income | ($7) | ($11) | $15 |
Derivative_Instruments_and_Hed2
Derivative Instruments and Hedging Activities - Fair Values of Commodity Derivatives Including Offsetting of Assets and Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Assets/(Liabilities) | ($163) | $53 |
Gross Amounts Offset | 140 | -3 |
Net Amounts of Assets/(Liabilities) | -23 | 50 |
Fair Value of Derivative Assets, Current [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Assets/(Liabilities) | 111 | 134 |
Gross Amounts Offset | -67 | -77 |
Net Amounts of Assets/(Liabilities) | 44 | 57 |
Fair Value of Derivative Assets, Non-current [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Assets/(Liabilities) | 34 | 32 |
Gross Amounts Offset | -23 | -24 |
Net Amounts of Assets/(Liabilities) | 11 | 8 |
Fair Value of Derivative Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Assets/(Liabilities) | 145 | 166 |
Gross Amounts Offset | -90 | -101 |
Net Amounts of Assets/(Liabilities) | 55 | 65 |
Fair Value of Derivative Liabilities, Current [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Assets/(Liabilities) | -242 | -82 |
Gross Amounts Offset | 139 | 72 |
Net Amounts of Assets/(Liabilities) | -103 | -10 |
Fair Value of Derivative Liabilities, Non-current [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Assets/(Liabilities) | -66 | -31 |
Gross Amounts Offset | 91 | 26 |
Net Amounts of Assets/(Liabilities) | 25 | -5 |
Fair Value of Derivative Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Assets/(Liabilities) | -308 | -113 |
Gross Amounts Offset | 230 | 98 |
Net Amounts of Assets/(Liabilities) | -78 | -15 |
CECONY [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Assets/(Liabilities) | -90 | -10 |
Gross Amounts Offset | 45 | 5 |
Net Amounts of Assets/(Liabilities) | -45 | -5 |
CECONY [Member] | Fair Value of Derivative Assets, Current [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Assets/(Liabilities) | 26 | 27 |
Gross Amounts Offset | -15 | -19 |
Net Amounts of Assets/(Liabilities) | 11 | 8 |
CECONY [Member] | Fair Value of Derivative Assets, Non-current [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Assets/(Liabilities) | 22 | 14 |
Gross Amounts Offset | -20 | -13 |
Net Amounts of Assets/(Liabilities) | 2 | 1 |
CECONY [Member] | Fair Value of Derivative Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Assets/(Liabilities) | 48 | 41 |
Gross Amounts Offset | -35 | -32 |
Net Amounts of Assets/(Liabilities) | 13 | 9 |
CECONY [Member] | Fair Value of Derivative Liabilities, Current [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Assets/(Liabilities) | -96 | -32 |
Gross Amounts Offset | 48 | 21 |
Net Amounts of Assets/(Liabilities) | -48 | -11 |
CECONY [Member] | Fair Value of Derivative Liabilities, Non-current [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Assets/(Liabilities) | -42 | -19 |
Gross Amounts Offset | 32 | 16 |
Net Amounts of Assets/(Liabilities) | -10 | -3 |
CECONY [Member] | Fair Value of Derivative Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Gross Amounts of Recognized Assets/(Liabilities) | -138 | -51 |
Gross Amounts Offset | 80 | 37 |
Net Amounts of Assets/(Liabilities) | ($58) | ($14) |
Derivative_Instruments_and_Hed3
Derivative Instruments and Hedging Activities - Fair Values of Commodity Derivatives Including Offsetting of Assets and Liabilities (Parenthetical) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ||
Margin deposits | $27 | $17 |
CECONY [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Margin deposits | $25 | $16 |
Derivative_Instruments_and_Hed4
Derivative Instruments and Hedging Activities - Realized and Unrealized Gains or Losses on Commodity Derivatives (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Pre-tax gains/(losses) deferred in accordance with accounting rules for regulated operations: | ||
Total deferred gains/(losses) | ($9) | $14 |
Total deferred gains/(losses) | -56 | 35 |
Net deferred gains/(losses) | -65 | 49 |
Pre-tax gain/(loss) recognized in income | ||
Total pre-tax gain/(loss) recognized in income | -123 | 72 |
Deferred Derivative Gains - Current [Member] | ||
Pre-tax gains/(losses) deferred in accordance with accounting rules for regulated operations: | ||
Total deferred gains/(losses) | -10 | 14 |
Deferred Derivative Gains, Long-term [Member] | ||
Pre-tax gains/(losses) deferred in accordance with accounting rules for regulated operations: | ||
Total deferred gains/(losses) | 1 | |
Deferred Derivative Losses, Current [Member] | ||
Pre-tax gains/(losses) deferred in accordance with accounting rules for regulated operations: | ||
Total deferred gains/(losses) | -75 | 47 |
Recoverable Energy Costs - Current [Member] | ||
Pre-tax gains/(losses) deferred in accordance with accounting rules for regulated operations: | ||
Total deferred gains/(losses) | 36 | -39 |
Deferred Derivative Losses, Noncurrent [Member] | ||
Pre-tax gains/(losses) deferred in accordance with accounting rules for regulated operations: | ||
Total deferred gains/(losses) | -17 | 27 |
CECONY [Member] | ||
Pre-tax gains/(losses) deferred in accordance with accounting rules for regulated operations: | ||
Total deferred gains/(losses) | -6 | 11 |
Total deferred gains/(losses) | -61 | 14 |
Net deferred gains/(losses) | -67 | 25 |
CECONY [Member] | Deferred Derivative Gains - Current [Member] | ||
Pre-tax gains/(losses) deferred in accordance with accounting rules for regulated operations: | ||
Total deferred gains/(losses) | -7 | 11 |
CECONY [Member] | Deferred Derivative Gains, Long-term [Member] | ||
Pre-tax gains/(losses) deferred in accordance with accounting rules for regulated operations: | ||
Total deferred gains/(losses) | 1 | |
CECONY [Member] | Deferred Derivative Losses, Current [Member] | ||
Pre-tax gains/(losses) deferred in accordance with accounting rules for regulated operations: | ||
Total deferred gains/(losses) | -70 | 38 |
CECONY [Member] | Recoverable Energy Costs - Current [Member] | ||
Pre-tax gains/(losses) deferred in accordance with accounting rules for regulated operations: | ||
Total deferred gains/(losses) | 26 | -37 |
CECONY [Member] | Deferred Derivative Losses, Noncurrent [Member] | ||
Pre-tax gains/(losses) deferred in accordance with accounting rules for regulated operations: | ||
Total deferred gains/(losses) | -17 | 13 |
Purchased Power Costs [Member] | ||
Pre-tax gain/(loss) recognized in income | ||
Total pre-tax gain/(loss) recognized in income | -37 | 90 |
Gas Purchased for Resale [Member] | ||
Pre-tax gain/(loss) recognized in income | ||
Total pre-tax gain/(loss) recognized in income | -115 | -27 |
Non-utility Revenue [Member] | ||
Pre-tax gain/(loss) recognized in income | ||
Total pre-tax gain/(loss) recognized in income | $29 | $9 |
Derivative_Instruments_and_Hed5
Derivative Instruments and Hedging Activities - Realized and Unrealized Gains or Losses on Commodity Derivatives (Parenthetical) (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Non Utility Operating Revenue [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Unrealized gain/(loss) on derivatives | $4 | |
Purchased Power Costs [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Unrealized gain/(loss) on derivatives | $132 | $74 |
Derivative_Instruments_and_Hed6
Derivative Instruments and Hedging Activities - Hedged Volume of Derivative Transactions (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
MWh | |
Electric Energy Derivative [Member] | |
Derivatives, Fair Value [Line Items] | |
MWHs | 17,792,555 |
Electric Capacity Derivative [Member] | |
Derivatives, Fair Value [Line Items] | |
MWs | 7,706 |
Natural Gas Derivative [Member] | |
Derivatives, Fair Value [Line Items] | |
Dths | 66,793,011 |
CECONY [Member] | Electric Energy Derivative [Member] | |
Derivatives, Fair Value [Line Items] | |
MWHs | 5,543,250 |
CECONY [Member] | Electric Capacity Derivative [Member] | |
Derivatives, Fair Value [Line Items] | |
MWs | 2,100 |
CECONY [Member] | Natural Gas Derivative [Member] | |
Derivatives, Fair Value [Line Items] | |
Dths | 62,065,000 |
Derivative_Instruments_and_Hed7
Derivative Instruments and Hedging Activities - Additional Information (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Investment Holdings [Line Items] | |
Energy supply and hedging activities credit exposure total | $148 |
Makeup of net credit exposure independent system operators | 45 |
Makeup of net credit exposure with commodity exchange brokers | 79 |
Makeup of net credit exposure with investment-grade counterparties | 20 |
Makeup of net credit exposure non-investment grade/non-rated counterparties | 4 |
CECONY [Member] | |
Investment Holdings [Line Items] | |
Energy supply and hedging activities credit exposure total | $25 |
Derivative_Instruments_and_Hed8
Derivative Instruments and Hedging Activities - Aggregate Fair Value of Companies' Derivative Instruments with Credit-Risk-Related Contingent Features (Detail) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Derivatives, Fair Value [Line Items] | |
Aggregate fair value - net liabilities | $78 |
Collateral posted | 1 |
Downgrade One Level from Current Ratings [Member] | |
Derivatives, Fair Value [Line Items] | |
Derivatives in net liability position additional collateral | 6 |
Downgrade to Below Investment Grade from Current Ratings [Member] | |
Derivatives, Fair Value [Line Items] | |
Derivatives in net liability position additional collateral | 105 |
CECONY [Member] | |
Derivatives, Fair Value [Line Items] | |
Aggregate fair value - net liabilities | 58 |
CECONY [Member] | Downgrade One Level from Current Ratings [Member] | |
Derivatives, Fair Value [Line Items] | |
Derivatives in net liability position additional collateral | 2 |
CECONY [Member] | Downgrade to Below Investment Grade from Current Ratings [Member] | |
Derivatives, Fair Value [Line Items] | |
Derivatives in net liability position additional collateral | $63 |
Derivative_Instruments_and_Hed9
Derivative Instruments and Hedging Activities - Aggregate Fair Value of Companies' Derivative Instruments with Credit-Risk-Related Contingent Features (Parenthetical) (Detail) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Derivatives, Fair Value [Line Items] | |
Collateral posted | $1 |
Downgrade to Below Investment Grade from Current Ratings [Member] | |
Derivatives, Fair Value [Line Items] | |
Derivatives in net asset position additional collateral | 15 |
Additional Collateral Required Due To Loss Of Unsecured Credit [Member] | |
Derivatives, Fair Value [Line Items] | |
Collateral posted | 16 |
Additional Collateral Required Due To Loss Of Unsecured Credit [Member] | CECONY [Member] | |
Derivatives, Fair Value [Line Items] | |
Collateral posted | $3 |
Fair_Value_Measurements_Assets
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | $361 | $336 |
Total liabilities | 78 | 17 |
CECONY [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 299 | 262 |
Total liabilities | 58 | 14 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 166 | 144 |
Total liabilities | 18 | 5 |
Level 1 [Member] | CECONY [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 156 | 137 |
Total liabilities | 16 | 5 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 194 | 243 |
Total liabilities | 246 | 86 |
Level 2 [Member] | CECONY [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 109 | 116 |
Total liabilities | 91 | 27 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 28 | 11 |
Total liabilities | 8 | 2 |
Level 3 [Member] | CECONY [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 13 | 6 |
Commodity [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 82 | 82 |
Derivative liabilities | 78 | 15 |
Commodity [Member] | CECONY [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 38 | 25 |
Derivative liabilities | 58 | 14 |
Commodity [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 3 | 3 |
Derivative liabilities | 18 | 5 |
Commodity [Member] | Level 1 [Member] | CECONY [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 1 | 3 |
Derivative liabilities | 16 | 5 |
Commodity [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 78 | 130 |
Derivative liabilities | 246 | 84 |
Commodity [Member] | Level 2 [Member] | CECONY [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 3 | 13 |
Derivative liabilities | 91 | 27 |
Commodity [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 28 | 11 |
Derivative liabilities | 8 | 2 |
Commodity [Member] | Level 3 [Member] | CECONY [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 13 | 6 |
Other [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 279 | 254 |
Other [Member] | CECONY [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 261 | 237 |
Other [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 163 | 141 |
Other [Member] | Level 1 [Member] | CECONY [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 155 | 134 |
Other [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 116 | 113 |
Other [Member] | Level 2 [Member] | CECONY [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 106 | 103 |
Interest Rate Contract [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 2 | |
Interest Rate Contract [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 2 | |
Netting Adjustments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | -27 | -62 |
Total liabilities | -194 | -76 |
Netting Adjustments [Member] | CECONY [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 21 | 3 |
Total liabilities | -49 | -18 |
Netting Adjustments [Member] | Commodity [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | -27 | -62 |
Derivative liabilities | -194 | -76 |
Netting Adjustments [Member] | Commodity [Member] | CECONY [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 21 | 3 |
Derivative liabilities | ($49) | ($18) |
Fair_Value_Measurements_Assets1
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Parenthetical) (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Fair Value Disclosures [Abstract] | ||
Transfers between levels 1,2 and 3 | $0 | $0 |
Fair_Value_Measurements_Schedu
Fair Value Measurements - Schedule of Commodity Derivatives (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |
Valuation Techniques | Discounted Cash Flow |
Electricity [Member] | |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |
Valuation Techniques | Discounted Cash Flow |
Natural Gas [Member] | |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |
Valuation Techniques | Discounted Cash Flow |
Transmission Congestion Contracts / Financial Transmission Rights [Member] | |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |
Valuation Techniques | Discounted Cash Flow |
Minimum [Member] | Discount to Adjust Auction Prices for Inter-Zonal Forward Price Curves [Member] | |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |
Unobservable Inputs Range in percentage | 9.60% |
Minimum [Member] | Discount to Adjust Auction Prices for Historical Monthly Realized Settlements [Member] | |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |
Unobservable Inputs Range in percentage | 32.30% |
Minimum [Member] | Inter-Zonal Forward Price Curves Adjusted for Historical Zonal Losses [Member] | |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |
Unobservable Inputs Range | -2.66 |
Minimum [Member] | Forward Energy Prices [Member] | |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |
Unobservable Inputs Range | 22.59 |
Minimum [Member] | Forward Capacity Prices [Member] | |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |
Unobservable Inputs Range | 1 |
Minimum [Member] | Forward Gas Prices [Member] | |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |
Unobservable Inputs Range | -1.64 |
Maximum [Member] | Discount to Adjust Auction Prices for Inter-Zonal Forward Price Curves [Member] | |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |
Unobservable Inputs Range in percentage | 57.90% |
Maximum [Member] | Discount to Adjust Auction Prices for Historical Monthly Realized Settlements [Member] | |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |
Unobservable Inputs Range in percentage | 56.10% |
Maximum [Member] | Inter-Zonal Forward Price Curves Adjusted for Historical Zonal Losses [Member] | |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |
Unobservable Inputs Range | 16.49 |
Maximum [Member] | Forward Energy Prices [Member] | |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |
Unobservable Inputs Range | 120 |
Maximum [Member] | Forward Capacity Prices [Member] | |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |
Unobservable Inputs Range | 8.8 |
Maximum [Member] | Forward Gas Prices [Member] | |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |
Unobservable Inputs Range | 5 |
Level 3 [Member] | |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |
Fair Value of commodity derivatives | 20 |
Level 3 [Member] | Electricity [Member] | |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |
Fair Value of commodity derivatives | 1 |
Level 3 [Member] | Natural Gas [Member] | |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |
Fair Value of commodity derivatives | 2 |
Level 3 [Member] | Transmission Congestion Contracts / Financial Transmission Rights [Member] | |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |
Fair Value of commodity derivatives | 17 |
CECONY [Member] | Transmission Congestion Contracts [Member] | |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |
Valuation Techniques | Discounted Cash Flow |
CECONY [Member] | Minimum [Member] | Discount to Adjust Auction Prices for Inter-Zonal Forward Price Curves [Member] | |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |
Unobservable Inputs Range in percentage | 9.60% |
CECONY [Member] | Minimum [Member] | Discount to Adjust Auction Prices for Historical Monthly Realized Settlements [Member] | |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |
Unobservable Inputs Range in percentage | 32.30% |
CECONY [Member] | Maximum [Member] | Discount to Adjust Auction Prices for Inter-Zonal Forward Price Curves [Member] | |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |
Unobservable Inputs Range in percentage | 57.90% |
CECONY [Member] | Maximum [Member] | Discount to Adjust Auction Prices for Historical Monthly Realized Settlements [Member] | |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |
Unobservable Inputs Range in percentage | 56.10% |
CECONY [Member] | Level 3 [Member] | Transmission Congestion Contracts [Member] | |
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | |
Fair Value of commodity derivatives | 13 |
Fair_Value_Measurements_Reconc
Fair Value Measurements - Reconciliation of Beginning and Ending Net Balances for Assets and Liabilities Measured at Level 3 Fair Value (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Beginning Balance | $9 | ($5) |
Included in Earnings | 30 | 7 |
Included in Regulatory Assets and Liabilities | 7 | 18 |
Purchases | 22 | 17 |
Settlements | -48 | -28 |
Ending Balance | 20 | 9 |
CECONY [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Beginning Balance | 6 | 10 |
Included in Earnings | 2 | 7 |
Included in Regulatory Assets and Liabilities | 7 | -1 |
Purchases | 16 | 13 |
Settlements | -18 | -23 |
Ending Balance | $13 | $6 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Non-utility Revenues [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value, assets measured on recurring basis, change in unrealized gain (loss) | ($2) | |
Purchased Power Costs [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Fair value, assets measured on recurring basis, change in unrealized gain (loss) | 2 | 3 |
Competitive Energy Businesses [Member] | Non-utility Revenues [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Gain (loss) on Level 3 energy derivative liabilities | -2 | |
Competitive Energy Businesses [Member] | Purchased Power Costs [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Gain (loss) on Level 3 energy derivative liabilities | $27 | $5 |
Variable_Interest_Entities_Add
Variable Interest Entities - Additional Information (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Variable Interest Entity [Line Items] | |
Net proceeds on sale | $108 |
Gain on sale, pretax | 45 |
Non controlling interest of third party | 9 |
Noncontrolling Interest [Member] | |
Variable Interest Entity [Line Items] | |
Non controlling interest of third party | 9 |
Variable Interest Entity, Not Primary Beneficiary [Member] | Copper Mountain Solar 3 [Member] | |
Variable Interest Entity [Line Items] | |
Percentage of variable interests | 50.00% |
Variable Interest Entity, Not Primary Beneficiary [Member] | California Solar [Member] | |
Variable Interest Entity [Line Items] | |
Percentage of variable interests | 50.00% |
Variable Interest Entity, Not Primary Beneficiary [Member] | Broken Bow II [Member] | |
Variable Interest Entity [Line Items] | |
Percentage of variable interests | 50.00% |
Variable Interest Entity, Not Primary Beneficiary [Member] | Nevada [Member] | Copper Mountain Solar 3 [Member] | |
Variable Interest Entity [Line Items] | |
Generating capacity | 250 |
Variable Interest Entity, Not Primary Beneficiary [Member] | Nebraska [Member] | Broken Bow II [Member] | |
Variable Interest Entity [Line Items] | |
Generating capacity | 75 |
Variable Interest Entity, Primary Beneficiary [Member] | Texas Solar 4 [Member] | |
Variable Interest Entity [Line Items] | |
Percentage of variable interests | 80.00% |
Purchase of membership interest, amount | 49 |
Net assets | 58 |
Variable Interest Entity, Primary Beneficiary [Member] | Texas Solar 4 [Member] | Noncontrolling Interest [Member] | |
Variable Interest Entity [Line Items] | |
Non controlling interest of third party | 9 |
Variable Interest Entity, Primary Beneficiary [Member] | Texas [Member] | Texas Solar 4 [Member] | |
Variable Interest Entity [Line Items] | |
Generating capacity | 40 |
California Solar [Member] | |
Variable Interest Entity [Line Items] | |
Percentage of variable interests sold | 50.00% |
Net proceeds on sale | 108 |
Gain on sale, pretax | 45 |
Gain on sale, net of tax | $26 |
California Solar [Member] | California [Member] | |
Variable Interest Entity [Line Items] | |
Generating capacity | 110 |
CECONY [Member] | |
Variable Interest Entity [Line Items] | |
Number of potential VIEs, long-term electricity purchase agreements | 3 |
Variable_Interest_Entities_Sch
Variable Interest Entities - Schedule of Sale and Deconsolidation of a Variable Interest Entity (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Variable Interest Entity [Line Items] | ||
Proceeds from sale, net of transaction costs of $1 | $108 | |
Non-utility property, less accumulated depreciation | -388 | -605 |
Long-term debt, including current portion | 12,191 | 10,974 |
Gain on sale of solar electric production projects | -45 | |
California Solar [Member] | ||
Variable Interest Entity [Line Items] | ||
Proceeds from sale, net of transaction costs of $1 | 108 | |
Non-utility property, less accumulated depreciation | -341 | |
Other assets, including working capital | -31 | |
Long-term debt, including current portion | 217 | |
Other liabilities | 9 | |
Gain on sale of solar electric production projects | -45 | |
Equity method investment upon deconsolidation | ($83) |
Variable_Interest_Entities_Sch1
Variable Interest Entities - Schedule of Sale and Deconsolidation of a Variable Interest Entity (Parenthetical) (Detail) (California Solar [Member], USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
California Solar [Member] | |
Variable Interest Entity [Line Items] | |
Transaction costs | $1 |
Variable_Interest_Entities_Sch2
Variable Interest Entities - Schedule of Assets and Liabilities Included in Consolidated Balance Sheet (Detail) (Variable Interest Entity, Primary Beneficiary [Member], Texas Solar 4 [Member], USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Variable Interest Entity [Line Items] | |
Assets | $135 |
Liabilities | 77 |
Restricted Cash [Member] | |
Variable Interest Entity [Line Items] | |
Assets | 13 |
Non-utility Property, less Accumulated Depreciation [Member] | |
Variable Interest Entity [Line Items] | |
Assets | 108 |
Other Assets [Member] | |
Variable Interest Entity [Line Items] | |
Assets | 14 |
Long-term Debt Due within One Year [Member] | |
Variable Interest Entity [Line Items] | |
Liabilities | 66 |
Other Liabilities [Member] | |
Variable Interest Entity [Line Items] | |
Liabilities | $11 |
Variable_Interest_Entities_Sum
Variable Interest Entities - Summary of VIEs (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
MW | |
Variable Interest Entity, Not Primary Beneficiary [Member] | Pilesgrove [Member] | New Jersey [Member] | |
Variable Interest Entity [Line Items] | |
Generating Capacity Owned | 9 |
Year of Initial Investment | 2010 |
Maximum Exposure to Loss (In Millions) | $26,000,000 |
Variable Interest Entity, Not Primary Beneficiary [Member] | Mesquite Solar 1 [Member] | Arizona [Member] | |
Variable Interest Entity [Line Items] | |
Generating Capacity Owned | 83 |
Power Purchase Agreement Term in Years | 20 years |
Year of Initial Investment | 2013 |
Maximum Exposure to Loss (In Millions) | 111,000,000 |
Variable Interest Entity, Not Primary Beneficiary [Member] | Copper Mountain Solar 2 [Member] | Nevada [Member] | |
Variable Interest Entity [Line Items] | |
Generating Capacity Owned | 75 |
Power Purchase Agreement Term in Years | 25 years |
Year of Initial Investment | 2013 |
Maximum Exposure to Loss (In Millions) | 80,000,000 |
Variable Interest Entity, Not Primary Beneficiary [Member] | Copper Mountain Solar 3 [Member] | Nevada [Member] | |
Variable Interest Entity [Line Items] | |
Generating Capacity Owned | 128 |
Power Purchase Agreement Term in Years | 20 years |
Year of Initial Investment | 2014 |
Maximum Exposure to Loss (In Millions) | 175,000,000 |
Variable Interest Entity, Not Primary Beneficiary [Member] | California Solar [Member] | California [Member] | |
Variable Interest Entity [Line Items] | |
Generating Capacity Owned | 55 |
Power Purchase Agreement Term in Years | 25 years |
Year of Initial Investment | 2012 |
Maximum Exposure to Loss (In Millions) | 81,000,000 |
Variable Interest Entity, Not Primary Beneficiary [Member] | Broken Bow II [Member] | Nebraska [Member] | |
Variable Interest Entity [Line Items] | |
Generating Capacity Owned | 37 |
Power Purchase Agreement Term in Years | 25 years |
Year of Initial Investment | 2014 |
Maximum Exposure to Loss (In Millions) | 57,000,000 |
Variable Interest Entity, Primary Beneficiary [Member] | Texas Solar 4 [Member] | Texas [Member] | |
Variable Interest Entity [Line Items] | |
Generating Capacity Owned | 32 |
Power Purchase Agreement Term in Years | 25 years |
Year of Initial Investment | 2014 |
Maximum Exposure to Loss (In Millions) | $58,000,000 |
Variable_Interest_Entities_Sum1
Variable Interest Entities - Summary of VIEs (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Variable Interest Entity, Primary Beneficiary [Member] | Texas Solar 4 [Member] | |
Variable Interest Entity [Line Items] | |
Percentage of variable interests | 80.00% |
Variable Interest Entity, Not Primary Beneficiary, Aggregated Disclosure [Member] | |
Variable Interest Entity [Line Items] | |
Percentage of variable interests | 50.00% |
Minimum [Member] | Solar Renewable Energy Credit Hedge [Member] | Pilesgrove [Member] | |
Variable Interest Entity [Line Items] | |
Renewable Energy Credit | 3 years |
Maximum [Member] | Solar Renewable Energy Credit Hedge [Member] | Pilesgrove [Member] | |
Variable Interest Entity [Line Items] | |
Renewable Energy Credit | 5 years |
Asset_Retirement_Obligations_A
Asset Retirement Obligations - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Regulatory Liabilities [Line Items] | ||
Accrued liability - asset retirement obligations | $188 | $143 |
Increase in liabilities for asset retirement obligations due to changes in estimated cash flows | 60 | |
Asset retirement obligations, accretion expense | 6 | |
Asset retirement obligations, liabilities settled | 21 | |
Asset retirement obligations, reductions | 16 | 17 |
CECONY [Member] | ||
Regulatory Liabilities [Line Items] | ||
Accrued liability - asset retirement obligations | 185 | 143 |
Increase in liabilities for asset retirement obligations due to changes in estimated cash flows | 57 | |
Asset retirement obligations, accretion expense | 6 | |
Asset retirement obligations, liabilities settled | 21 | |
Asset retirement obligations, reductions | $16 | $17 |
Related_Party_Transactions_Sum
Related Party Transactions - Summary of Costs of Administrative and Other Services Provided and Received (Detail) (CECONY [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CECONY [Member] | |||
Related Party Transaction [Line Items] | |||
Cost of services provided | $90 | $84 | $83 |
Cost of services received | $57 | $52 | $49 |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
CECONY [Member] | |||
Related Party Transaction [Line Items] | |||
Sale of natural gas | $80,000,000 | $72,000,000 | $54,000,000 |
Funding limit of CECONY to O&R | 250,000,000 | ||
O&R [Member] | |||
Related Party Transaction [Line Items] | |||
Outstanding loans to O&R | $0 | $0 |
Schedule_I_Condensed_Financial1
Schedule I - Condensed Financial Information - Condensed Statement of Income and Comprehensive Income (Detail) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule Of Condensed Consolidating Statement Of Operation [Line Items] | |||
Interest expense | ($591) | ($719) | ($604) |
NET INCOME FOR COMMON STOCK | 1,092 | 1,062 | 1,138 |
Comprehensive Income for Common Stock | 1,072 | 1,090 | 1,143 |
Net Income Per Common Share - Basic | $3.73 | $3.62 | $3.88 |
Net Income Per Common Share - Diluted | $3.71 | $3.61 | $3.86 |
DIVIDENDS DECLARED PER SHARE OF COMMON STOCK | $2.52 | $2.46 | $2.42 |
Average Number Of Shares Outstanding-Basic | 292.9 | 292.9 | 292.9 |
Average Number Of Shares Outstanding-Diluted | 294 | 294.4 | 294.5 |
Consolidated Edison Inc [Member] | |||
Schedule Of Condensed Consolidating Statement Of Operation [Line Items] | |||
Equity in earnings of subsidiaries | 1,101 | 1,062 | 1,154 |
Other income (deductions), net of taxes | 19 | 29 | 12 |
Interest expense | -28 | -29 | -28 |
NET INCOME FOR COMMON STOCK | 1,092 | 1,062 | 1,138 |
Comprehensive Income for Common Stock | $1,072 | $1,090 | $1,143 |
Net Income Per Common Share - Basic | $3.73 | $3.62 | $3.88 |
Net Income Per Common Share - Diluted | $3.71 | $3.61 | $3.86 |
DIVIDENDS DECLARED PER SHARE OF COMMON STOCK | $2.52 | $2.46 | $2.42 |
Average Number Of Shares Outstanding-Basic | 292.9 | 292.9 | 292.9 |
Average Number Of Shares Outstanding-Diluted | 294 | 294.4 | 294.5 |
Schedule_I_Condensed_Financial2
Schedule I - Condensed Financial Information - Condensed Statement of Cash Flows (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net Income | $1,092 | $1,062 | $1,138 |
Common stock dividends | 739 | 721 | 709 |
Change in Assets: | |||
Special deposits | 312 | -257 | -13 |
Income taxes receivable | -224 | ||
Other - net | 4 | 34 | 40 |
Net Cash Flows from Operating Activities | 2,831 | 2,552 | 2,599 |
INVESTING ACTIVITIES | |||
Net Cash Flows Used in Investing Activities | -2,759 | -2,659 | -2,523 |
FINANCING ACTIVITIES | |||
Net proceeds of short-term debt | -651 | 912 | 539 |
Retirement of long-term debt | -480 | -709 | -305 |
Common stock dividends | 739 | 721 | 709 |
NET CASH FLOWS (USED IN)/FROM FINANCING ACTIVITIES | -47 | 387 | -330 |
NET CHANGE FOR THE PERIOD | 25 | 280 | -254 |
BALANCE AT BEGINNING OF PERIOD | 674 | 394 | 648 |
BALANCE AT END OF PERIOD | 699 | 674 | 394 |
Consolidated Edison Inc [Member] | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net Income | 1,092 | 1,062 | 1,138 |
Common stock dividends | -739 | -721 | -709 |
Equity in earnings of subsidiaries | -1,101 | -1,062 | -1,154 |
Change in Assets: | |||
Special deposits | 314 | -264 | |
Income taxes receivable | -224 | ||
Other - net | -199 | 166 | -208 |
Net Cash Flows from Operating Activities | 642 | 680 | 503 |
INVESTING ACTIVITIES | |||
Contributions to subsidiaries | -1 | -100 | |
Net Cash Flows Used in Investing Activities | -1 | -100 | |
FINANCING ACTIVITIES | |||
Net proceeds of short-term debt | 101 | 58 | 115 |
Retirement of long-term debt | -2 | -1 | -1 |
Issuance of common shares for stock plans, net of repurchases | -10 | -8 | -9 |
Common stock dividends | -739 | -721 | -709 |
NET CASH FLOWS (USED IN)/FROM FINANCING ACTIVITIES | -650 | -672 | -604 |
NET CHANGE FOR THE PERIOD | -9 | 8 | -201 |
BALANCE AT BEGINNING OF PERIOD | 12 | 4 | 205 |
BALANCE AT END OF PERIOD | 3 | 12 | 4 |
CECONY [Member] | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Net Income | 1,058 | 1,020 | 1,014 |
Change in Assets: | |||
Other - net | 35 | -88 | -40 |
Net Cash Flows from Operating Activities | 2,430 | 2,643 | 2,346 |
INVESTING ACTIVITIES | |||
Net Cash Flows Used in Investing Activities | -2,304 | -2,417 | -1,958 |
FINANCING ACTIVITIES | |||
Net proceeds of short-term debt | -760 | 789 | 421 |
Retirement of long-term debt | -475 | -700 | -300 |
NET CASH FLOWS (USED IN)/FROM FINANCING ACTIVITIES | -114 | 54 | -407 |
NET CHANGE FOR THE PERIOD | 12 | 280 | -19 |
BALANCE AT BEGINNING OF PERIOD | 633 | 353 | 372 |
BALANCE AT END OF PERIOD | 645 | 633 | 353 |
CECONY [Member] | Consolidated Edison Inc [Member] | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Common stock dividends | 712 | 728 | 682 |
FINANCING ACTIVITIES | |||
Common stock dividends | 712 | 728 | 682 |
O&R [Member] | Consolidated Edison Inc [Member] | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Common stock dividends | 40 | 38 | 34 |
FINANCING ACTIVITIES | |||
Common stock dividends | 40 | 38 | 34 |
Competitive Energy Businesses [Member] | Consolidated Edison Inc [Member] | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Common stock dividends | 8 | 12 | 11 |
FINANCING ACTIVITIES | |||
Common stock dividends | $8 | $12 | $11 |
Schedule_I_Condensed_Financial3
Schedule I - Condensed Financial Information - Condensed Balance Sheet (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||||
CURRENT ASSETS | ||||
Cash and temporary cash investments | $699 | $674 | $394 | $648 |
Special deposits | 8 | 327 | ||
Accounts receivable - other | 1,201 | 1,251 | ||
Income taxes receivable | 224 | |||
Prepayments | 163 | 136 | ||
Other current assets | 278 | 235 | ||
TOTAL CURRENT ASSETS | 3,854 | 3,891 | ||
Investments in subsidiaries and others | 816 | 461 | ||
Goodwill | 429 | 429 | ||
Other noncurrent assets | 9,811 | 7,859 | ||
TOTAL ASSETS | 44,308 | 40,647 | 41,209 | |
CURRENT LIABILITIES | ||||
Long-term debt due within one year | 560 | 485 | ||
Notes payable | 800 | 1,451 | ||
Accrued taxes | 72 | 476 | ||
Other current liabilities | 508 | 478 | ||
TOTAL CURRENT LIABILITIES | 3,781 | 4,730 | ||
LONG-TERM DEBT | 11,631 | 10,489 | ||
Shareholders' Equity | ||||
Common Shareholders' Equity | 12,576 | 12,245 | ||
TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY | 44,308 | 40,647 | ||
Consolidated Edison Inc [Member] | ||||
CURRENT ASSETS | ||||
Cash and temporary cash investments | 3 | 12 | 4 | 205 |
Special deposits | 1 | 315 | ||
Accounts receivable - other | 185 | |||
Income taxes receivable | 224 | |||
Accounts receivable from affiliated companies | 381 | 950 | ||
Prepayments | 5 | 2 | ||
Other current assets | 4 | |||
TOTAL CURRENT ASSETS | 618 | 1,464 | ||
Investments in subsidiaries and others | 12,277 | 11,954 | ||
Goodwill | 406 | 406 | ||
Deferred income tax | 18 | 14 | ||
Other noncurrent assets | 11 | 4 | ||
TOTAL ASSETS | 13,330 | 13,842 | ||
CURRENT LIABILITIES | ||||
Long-term debt due within one year | 2 | 2 | ||
Notes payable | 274 | 173 | ||
Accounts payable to affiliated companies | 147 | 148 | ||
Accrued taxes | 13 | 426 | ||
Other current liabilities | 10 | 538 | ||
TOTAL CURRENT LIABILITIES | 446 | 1,287 | ||
Total Liabilities | 446 | 1,287 | ||
LONG-TERM DEBT | 308 | 310 | ||
Shareholders' Equity | ||||
Common stock, including additional paid-in capital | 5,023 | 5,027 | ||
Retained earnings | 7,553 | 7,218 | ||
Common Shareholders' Equity | 12,576 | 12,245 | ||
TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY | $13,330 | $13,842 |
Schedule_II_Valuation_and_Qual1
Schedule II - Valuation and Qualifying Accounts - Valuation and Qualifying Accounts (Detail) (Allowance For Uncollectible Accounts [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | $103 | $105 | $97 |
Charged To Costs And Expenses | 98 | 86 | 96 |
Charged To Other Accounts | 0 | 0 | 0 |
Deductions | 95 | 88 | 88 |
Balance At End of Period | 106 | 103 | 105 |
CECONY [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | 95 | 96 | 88 |
Charged To Costs And Expenses | 91 | 82 | 90 |
Charged To Other Accounts | 0 | 0 | 0 |
Deductions | 88 | 83 | 82 |
Balance At End of Period | $98 | $95 | $96 |