The Utilities expect to invest substantial amounts in their energy delivery systems: $5,079 million in 2025, $7,973 million in 2026, $8,161 million in 2027, $8,310 million in 2028 and $7,665 million in 2029. This indicates a focus on upgrading infrastructure.

Con Edison Transmission is considering strategic alternatives with respect to its investment in Mountain Valley Pipeline, LLC (MVP) and both Con Edison Transmission and CECONY are considering strategic alternatives with respect to their investments in Honeoye Storage Corporation (Honeoye). This indicates a potential shift in investment strategy.

Con Edison plans to issue up to $1,350 million of common equity in 2025 and up to $4,300 million in aggregate during 2027 through 2029. This shows a clear strategy to fund growth through equity.

The NYSPSC denied CECONY's petition to capitalize costs exceeding the $421 million cap for its new customer billing and information system, resulting in a $51 million expense. This highlights potential challenges in managing large projects effectively.

O&R, the New York State Department of Public Service (NYSDPS) and other parties entered into a joint proposal for new electric and gas rate plans for the three-year period January 1, 2025 through December 31, 2027. This suggests a collaborative approach to regulatory matters.

The NYSPSC continued its focused operations audit of the Utilities' financial accounting for income taxes, investigating a potential understatement of federal income tax expense for ratemaking purposes. This raises concerns about accounting accuracy.

The Companies' operations require numerous permits, approvals and certificates from various federal, state and local governmental agencies. State utility regulators may seek to impose substantial penalties on the Utilities for violations of state utility laws, regulations or orders or limit the Utilities from recovering costs incurred above amounts set forth in their rate plans.

The Companies and other operators of critical energy infrastructure and energy market participants face a heightened risk of cyber attack and the Companies' businesses require the continued operation of information systems and network infrastructure. Cyber attacks may include hacking, viruses, malware, denial of service attacks, ransomware, exploited vulnerabilities or other security incidents, including loss of data and communications and business disruption.

The Utilities have rate plans approved by state utility regulators that limit the rates they can charge their customers. The rates are generally designed for, but do not guarantee, the recovery of the Utilities' cost of providing service (including a return on equity).

The Utilities do not consider it reasonably likely that another company would be authorized to provide utility delivery service of electricity, gas or steam where the Utilities already provide service. Any such other company would need to obtain NYSPSC consent, satisfy applicable local requirements, install facilities to provide the service, meet applicable services standards and charge customers comparable taxes and other fees and costs imposed on the service.

The subset of distributed energy resources (DER) that produce electricity is collectively called distributed generation (DG). DG includes solar energy production facilities, fuel cells, and micro-turbines, and provides an alternative source of electricity for the Utilities' electric delivery customers.

The Companies expect DERs and electric alternatives to gas and steam, to increase, and for gas and steam usage to decrease, as the Climate Leadership and Community Protection Act (CLCPA) enacted by New York State and the Climate Mobilization Act enacted by New York City continue to be implemented.

CECONY's gas delivery revenues are subject to a weather normalization clause and a revenue decoupling mechanism. As a result, its gas delivery revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved.

O&R's New York electric revenues (which accounted for 74.63 percent of O&R's electric revenues in 2024) are subject to a revenue decoupling mechanism. As a result, O&R's New York electric delivery revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved.

CECONY's smart solutions for gas customers include energy efficiency and heating electrification programs. See "CECONY- Gas Operations - Gas Peak Demand," below.

The NYSPSC is directing development by New York electric utilities of a distributed system platform to manage and coordinate distributed energy resources in their service areas under NYSPSC regulation and to provide customers, together with third parties, with data and tools to better manage their energy use.

As of December 31, 2024, CECONY and O&R had three and one active demonstration projects, respectively. These projects are to inform distributed system platform business models.

The NYSPSC approved CECONY's and O&R's advanced metering infrastructure (AMI) installation plans for their electric and gas delivery businesses, at a cost of $1,285 million and $98.5 million, respectively, and such work was completed in 2024 and 2020, respectively.

The Utilities expect to invest substantial amounts in their energy delivery systems: $5,079 million in 2025, $7,973 million in 2026, $8,161 million in 2027, $8,310 million in 2028 and $7,665 million in 2029.

Con Edison plans to issue up to $1,350 million of common equity in 2025 and up to $4,300 million in aggregate during 2027 through 2029.

In 2024, the NYSPSC authorized CECONY, through 2027, to issue up to $6,050 million of debt securities ($2,625 million of which the company had issued as of December 31, 2024).

In 2019, New York State enacted the Climate Leadership and Community Protection Act (CLCPA) that established a goal of 70 percent of the electricity procured by load serving entities regulated by the NYSPSC to be produced by renewable energy systems by 2030 and requires the statewide electrical demand system to have zero emissions by 2040.

CECONY and O&R have been required to obtain renewable energy credits (RECs) and zero-emissions credits (ZECs) for their full-service customers since 2017.

Con Edison has adopted a Clean Energy Commitment whereby it commits to the transition to the clean energy future. Con Edison's Clean Energy Commitment is supported by five pillars: Build the grid of the future; Empower Con Edison's customers to meet their climate goals; Reimagine the gas system; Lead by reducing Con Edison's carbon footprint; Partner with stakeholders.

CECONY forecasts average annual increase in peak demand in its service area at design conditions over the next five years for electricity and gas to be approximately 1 percent and 0.1 percent, respectively, and an average annual decrease in steam peak demand in its service area at design weather conditions over the next five years to be approximately 0.4 percent.

O&R forecasts an average annual increase in electric peak demand in its service area at design conditions over the next five years to be approximately 3.6 percent and an average annual decrease in gas peak demand in its service area over the next five years at design conditions to be approximately 0.1 percent.

In March 2023, the New York State legislature amended the New York State Public Service Law, directing the NYSPSC to develop rules to direct electric and gas utilities to, among other things, (i) protect customer privacy, including customer consumption data, from unauthorized disclosure; (ii) develop and implement tools to monitor operational control networks to detect unauthorized network behavior; and (iii) mandate that utilities' emergency response plans include cyberattack response plans.