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Consolidated Edison, Inc. Reports 2005 Earnings
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Increases Dividend for 32nd Consecutive Year

NEW YORK, Jan. 26 /PRNewswire-FirstCall/ -- Consolidated Edison, Inc. (Con Edison) (NYSE: ED) today reported 2005 earnings from continuing operations of $732 million or $3.00 a share, compared with $549 million or $2.33 a share in 2004. The 2004 results include the impact of non-cash after-tax charges totaling $80 million or $0.34 a share related to Con Edison of New York's electric, gas and steam rate plans. Including losses from discontinued operations of Con Edison Communications, net income for common stock for 2005 was $719 million or $2.95 a share compared with $537 million or $2.28 a share in 2004.

For the fourth quarter of 2005, the company's earnings from continuing operations were $146 million or $0.59 a share compared with $52 million or $0.22 a share for the fourth quarter of 2004. Results for the fourth quarter of 2004 include $65 million or $0.27 a share of the non-cash charges noted above. Net income for common stock, including discontinued operations was $138 million or $0.56 a share compared with $51 million or $0.21 a share in the 2004 period.

"Con Edison's utility operations performed very well under extreme weather conditions in 2005," said Kevin Burke, the company's President and Chief Executive Officer. "The investments we have made in our infrastructure over the past few years enabled us to reliably meet the energy needs of our customers during the summer of 2005. These investments enable New York's economy to continue to grow," he said.

The company also declared a quarterly dividend of 57-1/2 cents a share on its common stock, payable March 15, 2006 to shareholders of record as of February 15, 2006, an annualized increase of 2 cents over the previous annual dividend of $2.28 a share. "Today's increase in the dividend, the 32nd consecutive annual increase, reflects our confidence in the company's future and is a tangible measure of our commitment to our shareholders," said Robert N. Hoglund, Senior Vice President and Chief Financial Officer.

The company expects its earnings for 2006 to be in the range of $2.90 to $3.10 a share. The forecast reflects construction expenditures of $1.8 billion for the company's regulated utilities, and common stock issuance of between $250 million and $450 million in addition to stock issuances under the company's dividend reinvestment and employee stock plans.

The following table shows the major factors affecting Con Edison's earnings per share from continuing operations for the year and fourth quarter of 2005 compared with the 2004 periods:


                                                    Year           Quarter
                                                2005 vs. 2004   2005 vs. 2004

    Con Edison of New York:
     Sales growth (estimated)                        $0.16           $0.05
     Impact of weather in 2005 versus 2004
      (estimated)                                     0.17            0.05
     Electric rate plan (estimated)                   0.72            0.19
     Gas rate plan (estimated)                        0.13               -
     Steam rate plan (estimated)                      0.20            0.04
     Increased pension and other postretirement
      benefit costs                                  (0.19)          (0.05)
     Higher operations and maintenance expense       (0.26)          (0.12)
     Higher depreciation and property tax            (0.37)          (0.11)
     Allowance for funds used during
      construction                                   (0.11)          (0.04)

     2004 non-cash rate plan charges                  0.34            0.27
     Other                                           (0.14)           0.03
    Total Con Edison of New York                      0.65            0.31
    Orange and Rockland Utilities                     0.01           (0.01)
    Unregulated energy subsidiaries (including
     parent company)                                  0.01            0.07
    Total earnings per share variation from
     continuing operations                           $0.67           $0.37

The earnings per share variations shown above include the dilutive effect of a higher weighted average number of common shares outstanding in the three months and year ended December 31, 2005. The weighted average number of common shares were 245 million shares and 244 million shares for the three months and year ended December 31, 2005, compared with 242 million shares and 236 million shares in the 2004 periods, respectively. The dilutive effect on earnings per share from continuing operations for the three months and year ended December 31, 2005 is $0.01 and $0.10, respectively. These amounts per share do not reflect the offsetting benefits of avoided interest expense.

For Con Edison of New York, increased revenues provided by the electric rate plan that took effect in April 2005 and the gas and steam rate plans that took effect in October 2004 reflected higher expenses for pensions and other postretirement benefits, ongoing operations and maintenance, depreciation and property taxes, and the required return on capital invested in its energy infrastructure. Pension and other postretirement benefit costs increased due primarily to lower net pension credits from the amortization of previous years' net investment results. Higher depreciation and property taxes reflect continuing infrastructure investment programs and the commercial start-up of the East River Repowering Project.

Under the electric rate plan, pension and other postretirement benefit costs and environmental remediation expenses in excess of the amounts reflected in rates were deferred as regulatory assets. Fifty percent ($47 million) of these regulatory assets were offset by estimated electric earnings in excess of the target (11.4% return on common equity) for the rate year ending March 31, 2006. At December 31, 2005, the company had accrued a $6 million reserve for the customers' fifty percent share of the remaining above-target earnings.

The performance of the unregulated energy subsidiaries in the fourth quarter of 2005, compared with the 2004 period, reflects primarily decreases in forward prices of electricity that resulted in the reversal of previously recognized unrealized mark-to-market accounting losses.

Amounts of electricity, gas and steam delivered by Con Edison of New York in 2005, after adjusting for variations in weather and billing days in the period, increased 2.4 percent, 2.4 percent and 1.8 percent, respectively, as compared with the 2004 period.

Refer to the attachments to this press release for the condensed consolidated balance sheets at December 31, 2005 and 2004 and the consolidated income statements for 2005 and 2004. Additional information related to utility sales and revenues is available 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 $12 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)


                                         December 31, 2005   December 31, 2004
    ASSETS                                         (Millions of Dollars)
    PLANT, AT ORIGINAL COST
     Utility plant - net                           $16,210             $15,168
     Non-utility plant - net                           849                 873
     Non-utility property held for sale                 52                  47
    NET PLANT                                       17,111              16,088
    CURRENT ASSETS
     Cash and temporary cash investments                81                  26
     Accounts receivable - customers, less
      allowance for uncollectible accounts           1,025                 741
     Other receivables, less allowance for
      uncollectible accounts                           350                 198
     Inventories                                       425                 325
     Prepayments                                       434                  93
     Fair value of derivative assets                   331                  66
     Current assets held for sale                        8                   5
     Other current assets                              278                 277
    TOTAL CURRENT ASSETS                             2,932               1,731
    INVESTMENTS                                        265                 257
    DEFERRED CHARGES, REGULATORY ASSETS
     AND NONCURRENT ASSETS
     Goodwill                                          406                 406
     Intangible assets - net                            90                 100
     Prepaid pension costs                           1,474               1,442
     Regulatory assets                               2,247               2,258
     Other deferred charges and noncurrent
      assets                                           324                 278
    TOTAL DEFERRED CHARGES, REGULATORY
     ASSETS AND NONCURRENT ASSETS                    4,541               4,484
    TOTAL ASSETS                                   $24,849             $22,560

    CAPITALIZATION AND LIABILITIES
    CAPITALIZATION
     Common shareholders' equity                    $7,310              $7,054
     Preferred stock of subsidiary                     213                 213
     Long-term debt                                  7,398               6,561
    TOTAL CAPITALIZATION                            14,921              13,828
    NONCURRENT LIABILITIES
     Provision for injuries and damages                167                 180
     Pension and retiree benefits                      223                 207
     Superfund and other environmental costs           238                 198
     Noncurrent liabilities held for sale                9                   5
     Other noncurrent liabilities
      including minority interest                      225                 134
    TOTAL NONCURRENT LIABILITIES                       862                 724
    CURRENT LIABILITIES
     Long-term debt due within one year                 22                 469
     Notes payable                                     755                 156
     Accounts payable                                1,236                 920
     Customer deposits                                 229                 232
     Fair value of derivative liabilities              133                  24
     Deferred derivative gains                         224                  23
     Current liabilities held for sale                  12                  11
     Other current liabilities                         622                 410
    TOTAL CURRENT LIABILITIES                        3,233               2,245
    DEFERRED CREDITS AND REGULATORY
     LIABILITIES
     Deferred income taxes and investment
      tax credits                                    3,734               3,726
     Regulatory liabilities and other
      deferred credits                               2,099               2,037
    TOTAL DEFERRED CREDITS AND REGULATORY
     LIABILITIES                                     5,833               5,763
    TOTAL CAPITALIZATION AND LIABILITIES           $24,849             $22,560




                          CONSOLIDATED EDISON, INC.
                        CONSOLIDATED INCOME STATEMENT
                                 (UNAUDITED)


                                    For the Three Months     For the Years
                                     Ended December 31,    Ended December 31,
                                     2005         2004     2005         2004
                                     (Millions of Dollars/Except Share Data)
    OPERATING REVENUES
     Electric                      $1,905       $1,414   $7,588       $6,652
     Gas                              544          396    1,858        1,507
     Steam                            175          134      649          550
     Non-utility                      483          237    1,595        1,049
    TOTAL OPERATING REVENUES        3,107        2,181   11,690        9,758
    OPERATING EXPENSES
     Purchased power                1,297          925    4,743        3,960
     Fuel                             263          130      816          597
     Gas purchased for resale         368          209    1,155          852
     Other operations and
      maintenance                     446          374    1,685        1,495
     Depreciation and
      amortization                    149          139      584          551
     Taxes, other than income
      taxes                           311          265    1,185        1,080
     Income taxes                      42          (15)     364          292
    TOTAL OPERATING EXPENSES        2,876        2,027   10,532        8,827
    OPERATING INCOME                  231          154    1,158          931
    OTHER INCOME (DEDUCTIONS)
     Investment and other income       28            3       33           42
     Allowance for equity funds
      used during construction          1            7        9           25
     Preferred stock dividend
      requirements of subsidiary       (3)          (3)     (11)         (11)
     Other deductions                  (3)          (4)     (16)         (14)
     Income taxes                      13            7       23           20
    TOTAL OTHER INCOME
     (DEDUCTIONS)                      36           10       38           62
    INTEREST EXPENSE
     Interest on long-term debt       114          106      444          426
     Other interest                     8           11       27           36
     Allowance for borrowed funds
      used during construction         (1)          (5)      (7)         (18)
    NET INTEREST EXPENSE              121          112      464          444
    INCOME FROM CONTINUING
     OPERATIONS                       146           52      732          549
    LOSS FROM DISCONTINUED
     OPERATIONS (NET OF INCOME
     TAXES OF $1, $1, $4, and $8)      (8)          (1)     (13)         (12)
    NET INCOME                       $138          $51     $719         $537
    EARNINGS PER COMMON SHARE -
     BASIC
     Continuing operations          $0.59        $0.22    $3.00        $2.33
     Discontinued operations        (0.03)       (0.01)   (0.05)       (0.05)
     Net income                     $0.56        $0.21    $2.95        $2.28
    EARNINGS PER COMMON SHARE -
     DILUTED
     Continuing operations          $0.59         $0.22   $2.99        $2.32
     Discontinued operations        (0.03)        (0.01)  (0.05)       (0.05)
     Net income                     $0.56         $0.21   $2.94        $2.27
    AVERAGE NUMBER OF SHARES
     OUTSTANDING - BASIC
     (IN MILLIONS)                  245.0         242.2   243.9        235.8
    AVERAGE NUMBER OF SHARES
     OUTSTANDING - DILUTED
     (IN MILLIONS)                  245.9         242.9   244.7        236.4

SOURCE Consolidated Edison, Inc. /CONTACT: Joseph Petta, +1-212-460-4111, for Consolidated Edison, Inc./ /Web site: http://www.conedison.com / (ED)

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