CECONY filed a petition for $332 million in steam decarbonization projects and received approval for five urgent grid upgrade projects totaling $439.9 million. Additionally, NYSPSC established aggregate budgets of $2,140 million for CECONY and $110 million for O&R for energy efficiency and building electrification programs (2026-2030), demonstrating a clear strategic focus on clean energy.

Con Edison Transmission is considering strategic alternatives for its investments in Mountain Valley Pipeline, LLC (MVP) and Honeoye Storage Corporation. This indicates a potential move to optimize the portfolio and reallocate capital to core regulated utility and transmission assets.

Con Edison Transmission is actively developing the Propel NY Energy transmission project, a 90-mile electric transmission project with an estimated $2,200 million share for New York Transco. This highlights ongoing strategic investment in critical infrastructure to enhance grid reliability and capacity.

CECONY is executing an integrated collections strategy, including payment arrangements and enhanced communications, to reduce aged accounts receivable balances. While total customer accounts receivable for CECONY decreased slightly from $2,947 million (Dec 2024) to $2,892 million (June 2025), aged receivables remain significant at $1,530 million.

The NYSPSC denied CECONY's request to capitalize $89 million in incremental costs for its new customer billing and information system, forcing these costs to be expensed. This decision negatively impacts profitability and highlights challenges in recovering prudent investments through rates.

CECONY continues to investigate and remediate non-conforming gas and steam main welds, including instances of third-party contractor misconduct. While the company does not anticipate significant operational impact, the inability to estimate potential losses related to this matter introduces uncertainty.

CECONY faces significant regulatory risk with the NYSDPS supporting a $45 million gas rate decrease for January 2026, contrary to CECONY's requested $349 million increase. Additionally, the NYSPSC denied capitalization of $89 million for a new billing system, underscoring the challenges in securing favorable rate outcomes.

Net interest expense for Con Edison increased by $17 million for the three months ended June 30, 2025, primarily due to higher interest on long-term debt resulting from increased debt balances. The company estimates a 10% increase in variable interest rates would raise annual interest expense by $11 million for Con Edison and $9 million for CECONY.

The recently signed One Big Beautiful Bill Act (OBBBA) contains broad tax reform provisions, but management's preliminary assessment indicates no material impact on the Companies' financial position, results of operations, or liquidity. However, future guidance from the Department of Treasury could alter this assessment.

As a regulated utility, Con Edison (through CECONY and O&R) operates in service territories with limited direct competition for electricity, gas, and steam delivery. Its competitive position is primarily defined by regulatory approvals, service reliability, and investment in infrastructure rather than market share dynamics.

The Utilities' ability to adjust rates and recover costs, including fuel and purchased power, is subject to the approval of state regulators like the NYSPSC and NJBPU. This regulatory oversight dictates pricing power and ensures cost recovery, as seen in the various rate case filings and approvals.

Con Edison's investments in clean energy initiatives, such as steam decarbonization projects and electric transmission upgrades, are crucial for maintaining its essential service provider role amid evolving energy policies and climate goals. These investments are designed to ensure the company's long-term viability and alignment with industry trends.

CECONY's other operations and maintenance expenses decreased by $35 million for the three months ended June 30, 2025, primarily due to the NYSPSC order denying capitalization of customer billing system costs ($37 million). However, for the six months, these expenses increased by $11 million, indicating varied cost pressures.

Depreciation and amortization expenses for Con Edison increased by $64 million to $1,140 million for the six months ended June 30, 2025, compared to $1,051 million in 2024. This rise is primarily attributable to higher electric utility plant balances, reflecting ongoing significant capital expenditures to maintain and upgrade infrastructure.

Taxes, other than income taxes, increased by $110 million for the three months ended June 30, 2025, to $869 million, and by $249 million for the six months, to $1,789 million. This was primarily due to higher property taxes ($62 million for 3 months, $129 million for 6 months) and state and local revenue taxes, adding pressure to the cost structure.

CECONY filed a petition for authorization and cost recovery for the early deployment of four steam decarbonization projects, estimated at $332 million. This initiative, along with a low carbon fuels pilot program, demonstrates a commitment to leveraging new technologies for environmental sustainability and operational efficiency in its steam business.

The NYSPSC approved aggregate budgets of $2,140 million for CECONY and $110 million for O&R for energy efficiency and building electrification programs (2026-2030). These programs are treated as regulatory assets, indicating a long-term strategic push towards digital transformation and cleaner energy solutions.

CECONY's efforts to implement a new customer billing and information system faced a setback with the NYSPSC denying capitalization of $89 million in incremental costs. This highlights a challenge in recovering investments in digital transformation initiatives through the regulatory framework.

Con Edison issued 7 million common shares for $677 million (forward sale settlement) and 6.3 million shares for $631 million (public offering) in March 2025, totaling $1,308 million in new equity. This issuance contributed to a significant increase in shareholders' equity by $1,794 million to $23,756 million at June 30, 2025, enhancing the capital structure.

Con Edison's common equity ratio increased from 47.1% at December 31, 2024, to 49.1% at June 30, 2025, while CECONY's ratio increased from 46.0% to 48.0%. This improvement indicates a stronger capital structure and reduced reliance on debt financing, aligning with the company's objective of providing shareholder value through dividend growth supported by earnings growth.

Utility capital expenditures for Con Edison were $2,420 million for the six months ended June 30, 2025, a slight increase from $2,396 million in 2024. These substantial investments are critical for maintaining and upgrading infrastructure to provide reliable, resilient, safe, and clean energy, as well as supporting the clean energy transition.

CECONY is pursuing the early deployment of four steam decarbonization projects with an estimated cost of $332 million, alongside a low carbon fuels pilot program. This demonstrates a clear environmental commitment to reducing greenhouse gas emissions in its steam operations.

The NYSPSC approved substantial budgets for CECONY ($2,140 million) and O&R ($110 million) for energy efficiency and building electrification programs for 2026-2030. These initiatives are central to the Companies' efforts to meet federal, state, and city clean energy policy goals and promote sustainability.

Con Edison continues to manage accrued liabilities for Superfund Sites, totaling $1,027 million at June 30, 2025, and has an estimated aggregate undiscounted potential liability for manufactured gas plant sites up to $3,391 million. This reflects the long-term environmental responsibilities and associated costs.

New York State's 2025-2026 budget bill increased payroll tax rates for CECONY and O&R, effective July 1, 2025, and extended the corporate franchise tax rate increase through 2026. This dynamic regulatory environment directly impacts the Utilities' cost structure and financial planning.

Higher unit costs for purchased power ($101 million for CECONY electric, $8 million for O&R gas) and fuel ($7 million for CECONY steam) contributed to increased operating expenses for the three months ended June 30, 2025. Inflationary pressures and higher interest rates are noted as increasing capital costs and affecting liquidity.

Federal, state, and local laws and policies aiming to reduce carbon intensity are expected to increase electric usage while decreasing gas and steam usage in service territories. This trend is a major driver for Con Edison's strategic investments in grid upgrades, energy efficiency, and decarbonization projects to align with future market demands.