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Con Edison, Inc. Reports 2005 Third Quarter Earnings
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NEW YORK, Oct. 20 /PRNewswire-FirstCall/ -- Consolidated Edison, Inc. (Con Edison) (NYSE: ED) today reported 2005 third quarter earnings from ongoing operations of $287 million or $1.17 a share, compared with earnings from ongoing operations of $265 million or $1.11 cents a share for the third quarter of 2004. Excluded from the 2004 results is the impact of non-cash charges totaling $15 million after-tax related to the Con Edison of New York gas and steam rate plans. Also excluded from these results are the discontinued operations of Con Edison Communications (CEC). Including the 2004 charges and losses from CEC, net income for common stock for the third quarter of 2005 was $285 million or $1.17 a share compared with $246 million or $1.02 a share in 2004. The company also declared a quarterly dividend of 57 cents a share on its common stock payable December 15, 2005 to stockholders of record as of November 16, 2005.

"Warmer than normal summer weather pushed electricity usage in our service territories to record levels," said Kevin Burke, the company's President and Chief Executive Officer. "We are investing more than $1 billion a year to maintain reliability and upgrade our transmission and distribution systems. Our infrastructure investments are essential to support New York's economic growth, as well as to provide the power necessary for a better quality of life for our customers," he said.

The company's earnings from ongoing operations for the first nine months of 2005 were $586 million or $2.41 a share compared with earnings from ongoing operations of $512 million or $2.19 a share for the first nine months of 2004. Including the 2004 charges and discontinued operations of CEC, net income for common stock for the first nine months of 2005 was $581 million or $2.39 a share compared with $487 million or $2.08 a share in the 2004 period.

The company expects its earnings for 2005 to be in the range of $2.85 to $2.95 a share. The company's previously forecasted 2005 earnings range was $2.75 to $2.90 per share.

    The following table is a reconciliation of Con Edison's earnings and
earnings per share from ongoing operations to reported net income for common
stock and earnings per share.


                                         For the quarter ended September 30,
                                                                Earnings
                                            Earnings            per share
    (Millions of Dollars, except
     earnings per share)                2005        2004    2005         2004
    Reported net income for common
     stock and earnings per share -
     GAAP Basis                         $285        $246   $1.17        $1.02
    Con Edison of New York gas
     and steam rate plan one-time
     charges                               -          15       -         0.07
    Discontinued operations of CEC         2           4       -         0.02
    Ongoing operations                  $287        $265   $1.17        $1.11


                                      For the nine months ended September 30,
                                                                Earnings
                                            Earnings            per share
    (Millions of Dollars, except
     earnings per share)                2005        2004    2005         2004
    Reported net income for common
     stock and earnings per share -
     GAAP Basis                         $581        $487   $2.39        $2.08
    Con Edison of New York gas
     and steam rate plan one-time
     charges                               -          15       -         0.07
    Discontinued operations of CEC         5          10    0.02         0.04
    Ongoing operations                  $586        $512   $2.41        $2.19

The following table represents an analysis of the major factors affecting Con Edison's earnings per share from ongoing operations for the third quarter and first nine months of 2005 compared with the 2004 periods:


                                                  Third Quarter    Nine Months
                                                    Variation       Variation
    Con Edison of New York:
      Sales growth (estimated)                        $0.04            $0.11
      Impact of weather in 2005 versus 2004
       (estimated)                                     0.16             0.12
      Electric rate plan (estimated)                   0.26             0.53
      Gas rate plan (estimated)                        0.02             0.13
      Steam rate plan (estimated)                      0.03             0.16
      Increased pension and other postretirement
       benefit costs                                  (0.04)           (0.14)
      Higher operations and maintenance expense       (0.06)           (0.14)
      Higher depreciation, property tax and other
       taxes                                          (0.19)           (0.33)
      Allowance for funds used during construction    (0.04)           (0.07)
      Other                                           (0.05)           (0.11)
    Total Con Edison of New York                       0.13             0.26
    Orange and Rockland Utilities                      0.01             0.03
    Unregulated energy subsidiaries (including
     parent company)                                  (0.08)           (0.07)
    Total earnings per share variation from
     ongoing operations                               $0.06            $0.22

The earnings per share variations shown above reflect the dilutive effect of a higher weighted average number of common shares outstanding in the 2005 three-month and nine-month periods (244 million shares in each period) than in the 2004 three-month and nine-month periods (242 million and 234 million shares, respectively).

For Con Edison of New York, increased revenues under the electric rate plan that took effect in April 2005 and the gas and steam rate plans that took effect in October 2004 address the recovery of higher expenses for pensions and other postretirement benefits, ongoing operations and maintenance, depreciation and property taxes, and provide a return on capital invested in the energy infrastructure. The increases in pension and other postretirement benefit costs reflect primarily lower net pension credits from the amortization of previous years' net investment gains and losses. Higher depreciation and property taxes reflect continuing infrastructure investment programs and the commercial start-up of the East River Repowering Project.

The performance of the unregulated energy subsidiaries for the third quarter and the first nine months of 2005, compared with the 2004 periods, reflects primarily the effect of mark-to-market accounting for electricity sales. For these sales, prices are fixed and fuel costs have been hedged.

For the three months ended September 30, 2005, amounts of electricity, gas and steam delivered by Con Edison of New York, after adjusting for variations in weather and billing days in the period, increased 2.7 percent, 3.5 percent and 1.9 percent, respectively, as compared with the 2004 period.

For the first nine months of 2005, amounts of electricity, gas and steam delivered by Con Edison of New York, after adjusting for variations in weather and billing days in the period, increased 2.2 percent, 3.3 percent and 2.3 percent, respectively, as compared with the 2004 period.

Refer to the attachments to this press release for the condensed consolidated balance sheets at September 30, 2005 and December 31, 2004 and the consolidated income statements for the three and nine months ended September 30, 2005 and 2004. Additional information related to utility sales and revenues is available on the Con Edison Web site at www.conedison.com, select "Investor Information" and then select "Financial Reports."

This press release contains forward-looking statements that reflect expectations and not facts. Actual results may differ materially from those expectations because of factors such as those identified in reports the company has filed with the Securities and Exchange Commission.

Consolidated Edison, Inc. is one of the nation's largest investor-owned energy companies, with approximately $10 billion in annual revenues and $25 billion in assets. The company provides a wide range of energy-related products and services to its customers through the following subsidiaries: Consolidated Edison Company of New York, Inc., a regulated utility providing electric, gas, and steam service in New York City and Westchester County, New York; Orange and Rockland Utilities, Inc., a regulated utility serving customers in a 1,350 square mile area in southeastern New York state and adjacent sections of northern New Jersey and northeastern Pennsylvania; Con Edison Solutions, a retail energy supply and services company; Con Edison Energy, a wholesale energy supply company; Con Edison Development, a company that owns and operates generating plants and participates in other infrastructure projects; and Con Edison Communications, a telecommunications infrastructure company and service provider.


                            CONSOLIDATED EDISON, INC.
                     CONSOLIDATED BALANCE SHEET (Condensed)
                                   (UNAUDITED)

                                       September 30, 2005    December 31, 2004
    ASSETS                                      (Millions of Dollars)
    PLANT, AT ORIGINAL COST
     Utility plant - net                          $15,736              $15,168
     Non-utility plant - net                          853                  873
     Non-utility property held for sale                74                   65
    NET PLANT                                      16,663               16,106
    CURRENT ASSETS
     Cash and temporary cash investments              119                   26
     Accounts receivable - customers, less
      allowance for uncollectible accounts            910                  741
     Other receivables, less allowance for
      uncollectible accounts                          308                  198
     Inventories                                      394                  307
     Prepayments                                      632                   93
     Current assets held for sale                       5                    5
     Other current assets                           1,083                  339
    TOTAL CURRENT ASSETS                            3,451                1,709
    INVESTMENTS                                       263                  257
    DEFERRED CHARGES, REGULATORY ASSETS
     AND NONCURRENT ASSETS
     Goodwill                                         409                 406
     Intangible assets - net                           93                 100
     Prepaid pension costs                          1,466               1,442
     Regulatory assets                              2,057               2,258
     Other deferred charges and noncurrent
      assets                                          370                 282
    TOTAL DEFERRED CHARGES, REGULATORY
     ASSETS AND NONCURRENT ASSETS                   4,395               4,488
    TOTAL ASSETS                                  $24,772             $22,560

    CAPITALIZATION AND LIABILITIES
    CAPITALIZATION
     Common shareholders' equity                   $7,340              $7,054
     Preferred stock of subsidiary                    213                 213
     Long-term debt                                 7,061               6,561
    TOTAL CAPITALIZATION                           14,614              13,828
    NONCURRENT LIABILITIES
     Provision for injuries and damages               175                 180
     Pension and retiree benefits                     235                 207
     Superfund and other environmental
      costs                                           236                 198
     Noncurrent liabilities held for sale               7                   5
     Other noncurrent liabilities
      including minority interest                     141                 134
    TOTAL NONCURRENT LIABILITIES                      794                 724
    CURRENT LIABILITIES
     Long-term debt due within one year               371                 469
     Notes payable                                    224                 156
     Accounts payable                               1,189                 920
     Customer deposits                                228                 232
     Current liabilities held for sale                 10                  11
     Other current liabilities                      1,030                 434
    TOTAL CURRENT LIABILITIES                       3,052               2,222
    DEFERRED CREDITS AND REGULATORY
     LIABILITIES
     Deferred income taxes and investment
      tax credits                                   3,810               3,726
     Regulatory liabilities and other
      deferred credits                              2,502               2,060
    TOTAL DEFERRED CREDITS AND REGULATORY
     LIABILITIES                                    6,312               5,786
    TOTAL CAPITALIZATION AND LIABILITIES          $24,772             $22,560


                            CONSOLIDATED EDISON, INC.
                          CONSOLIDATED INCOME STATEMENT
                                   (UNAUDITED)

                                  For the Three Months     For the Nine Months
                                  Ended September 30,      Ended September 30,
                                  2005           2004      2005          2004
                                       (Millions of Dollars/Except Share Data)
    OPERATING REVENUES
     Electric                    $2,518        $2,168    $5,682        $5,238
     Gas                            232           182     1,314         1,111
     Steam                          111            88       474           415
     Non-utility                    514           296     1,112           813
    TOTAL OPERATING REVENUES      3,375         2,734     8,582         7,577
    OPERATING EXPENSES
     Purchased power              1,538         1,215     3,447         3,035
     Fuel                           222           148       553           467
     Gas purchased for resale       133            86       786           643
     Other operations and
      maintenance                   420           384     1,239         1,121
     Depreciation and
      amortization                  147           140       434           413
     Taxes, other than income
      taxes                         323           278       874           815
     Income taxes                   173           153       322           306
    TOTAL OPERATING EXPENSES      2,956         2,404     7,655         6,800
    OPERATING INCOME                419           330       927           777
    OTHER INCOME (DEDUCTIONS)
     Investment and other income    (11)           24         6            39
     Allowance for equity funds
      used during construction        -             6         8            18
     Preferred stock dividend
      requirements of subsidiary     (3)           (3)       (8)           (8)
     Other deductions                (3)           (4)      (14)          (10)
     Income taxes                     5             6        10            12
    TOTAL OTHER INCOME
     (DEDUCTIONS)                   (12)           29         2            51
    INTEREST EXPENSE
     Interest on long-term debt     111           105       330           320
     Other interest                   9             8        19            24
     Allowance for borrowed funds
      used during construction        -            (4)       (6)          (13)
    NET INTEREST EXPENSE            120           109       343           331
    INCOME FROM CONTINUING
     OPERATIONS                     287           250       586           497
    LOSS FROM DISCONTINUED
     OPERATIONS (NET OF INCOME
     TAXES OF $4, $3, $5, and $7)    (2)           (4)       (5)          (10)
    NET INCOME                     $285          $246      $581          $487
    EARNINGS PER COMMON SHARE
     - BASIC
     Continuing operations        $1.17         $1.04     $2.41         $2.12
     Discontinued operations          -         (0.02)    (0.02)        (0.04)
     Net income                   $1.17         $1.02     $2.39         $2.08
    EARNINGS PER COMMON SHARE
     - DILUTED
     Continuing operations        $1.17         $1.03     $2.40         $2.12
     Discontinued operations      (0.01)        (0.02)    (0.02)        (0.04)
     Net income                   $1.16         $1.01     $2.38         $2.08
    AVERAGE NUMBER OF SHARES
     OUTSTANDING - BASIC
     (IN MILLIONS)                244.4         241.5     243.5         233.9
    AVERAGE NUMBER OF SHARES
     OUTSTANDING - DILUTED
     (IN MILLIONS)                245.4         242.2     244.2         234.6

SOURCE Consolidated Edison, Inc. -0- 10/20/2005 /CONTACT: Joseph Petta, for Consolidated Edison, Inc., +1-212-460-4111/

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