Con Edison Transmission invests in and seeks to develop electric transmission projects through its subsidiary, Consolidated Edison Transmission, LLC. Con Edison Transmission is also participating in competitive solicitations to develop additional electric projects.

O&R filed an update to its January 2024 request to the NYSPSC for an electric and gas rate increase effective January 1, 2025. The company decreased its requested January 2024 rate increase by $7.5 million to $10.7 million for electric and increased its requested January 2024 rate increase by $3.1 million to $17.5 million for gas.

CECONY is actively pursuing clean energy initiatives, including utility-scale thermal energy network pilot projects. This demonstrates a commitment to sustainable energy solutions and alignment with state and local clean energy policies.

CECONY continues to investigate the non-conforming welds on certain gas and steam mains, is remediating and monitoring the known non-conforming welds and is cooperating with the NYSDPS on its investigation of this matter. CECONY is unable to estimate the amount or range of its possible loss, if any, related to this matter.

CECONY expensed incremental costs of $51 million for the new system that were previously capitalized, in addition to a $38 million reserve established at December 31, 2023. In June 2024, CECONY filed a petition for rehearing with the NYSPSC.

In June 2024, CECONY reached a four-year collective bargaining agreement with its largest union covering approximately 7,300 employees (which is subject to ratification by the employees).

CECONY continues to investigate the non-conforming welds on certain gas and steam mains, is remediating and monitoring the known non-conforming welds and is cooperating with the NYSDPS on its investigation of this matter. CECONY is unable to estimate the amount or range of its possible loss, if any, related to this matter.

CECONY filed a petition for rehearing with the NYSPSC regarding the disallowance of capitalization of costs to implement its new customer billing and information system. CECONY is unable to predict the NYSPSC's response to its rehearing petition.

The Utilities are unable to estimate the amount or range of their possible loss, if any, related to the understatement of historical income tax expense. At June 30, 2024, the Utilities had not accrued a liability related to this matter.

CECONY faces competition from alternative energy sources, which may impact the Companies' future financial condition. The Utilities expect electric usage to increase and gas and steam usage to decrease in their service territories as federal, state and local laws and policies are enacted and implemented that aim to reduce the carbon intensity of the energy that is consumed in their respective jurisdictions.

CECONY faces competition from distributed energy resources, which may impact the Companies' future financial condition. Measures that promote distributed energy resources, such as distributed generation, demand reduction and energy efficiency, also affect the volume of energy sales and deliveries.

CECONY's ability to compete is impacted by regulatory requirements, which may impact the Companies' future financial condition. The long-term future of the Utilities' gas businesses depends upon the role that natural gas or other gaseous fuels will play in facilitating New York State's and New York City's climate goals.

CECONY is working to improve operational efficiency, which may impact the Companies' future financial condition. The impact and costs of climate change on the Utilities' systems and the success of the Utilities' efforts to maintain system reliability and manage service interruptions resulting from severe weather may impact the Companies' future financial condition, results of operations and liquidity.

CECONY is working to improve collection of accounts receivable, which may impact the Companies' liquidity. Although these regulatory mechanisms are in place, a continued slower recovery in cash of outstanding customer accounts receivable balances has impacted the Companies' liquidity and may continue to impact liquidity.

CECONY is working to improve the cost structure, which may impact the Companies' financial condition. 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.

CECONY expensed incremental costs of $51 million for the new system that were previously capitalized, in addition to a $38 million reserve established at December 31, 2023. In June 2024, CECONY filed a petition for rehearing with the NYSPSC.

CECONY is working to improve the use of technology, which may impact the Companies' financial condition. The Utilities apply risk management strategies to mitigate their related exposures. See Note N to the Second Quarter Financial Statements.

CECONY is working to improve the use of derivative instruments, which may impact the Companies' financial condition. The Utilities use derivative instruments including futures, forwards, basis swaps, options, transmission congestion contracts and financial transmission rights contracts.

In May, CECONY issued $1,400 million in aggregate of debentures, the net proceeds from which were used to repay short-term borrowings and for other general corporate purposes.

Con Edison Transmission invests in and seeks to develop electric transmission projects through its subsidiary, Consolidated Edison Transmission, LLC. Con Edison Transmission is also participating in competitive solicitations to develop additional electric projects.

In April 2024, Con Edison made a $12 million contribution to the Foundation that Con Edison accrued as an expense in "Other Income and Deductions" within its consolidated income statement for the year ended December 31, 2023.

CECONY is working to meet clean energy goals, which may impact the Companies' future financial condition. The success of the Companies' efforts to meet federal, state and city clean energy policy goals and the impact of energy consumers' efforts to meet such goals on CECONY's electric, gas and steam businesses and O&R's electric

CECONY is working to improve the environment, which may impact the Companies' financial condition. The Companies are exposed to risks from the environmental consequences of their operations, including increased costs related to climate change.

CECONY is working to improve the community, which may impact the Companies' financial condition. Con Edison is a responsible neighbor, helping the communities it serves become more sustainable.

CECONY faces challenges from the market environment, which may impact the Companies' financial condition. The Companies are subject to various risks and uncertainties associated with financial and commodity markets. The most significant market risks include interest rate risk, commodity price risk and investment risk.

CECONY faces challenges from interest rate risk, which may impact the Companies' financial condition. The Companies' interest rate risk primarily relates to new debt financing needed to fund capital requirements, including the construction expenditures of the Utilities and maturing debt securities, and variable-rate debt.

CECONY faces challenges from commodity price risk, which may impact the Companies' financial condition. Con Edison's commodity price risk primarily relates to the purchase and sale of electricity, gas and related derivative instruments.