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Con Edison, Inc. Reports 2006 Second Quarter Earnings
2nd Quarter 2006 Sales and Revenue Report

NEW YORK, Aug. 2 /PRNewswire-FirstCall/ -- Consolidated Edison, Inc. (Con Edison) (NYSE: ED) today reported 2006 second quarter earnings of $124 million or $0.50 a share, compared with earnings of $115 million or $0.47 cents a share for the second quarter of 2005.

"We are spending more than $1.8 billion this year to improve our energy delivery systems," said Kevin Burke, Chairman, President and Chief Executive Officer. "These investments reflect our commitment to our customers and our determination to meet New York's growing demand for energy," he said.

The company's net income for common stock for the first six months of 2006 was $305 million or $1.24 a share compared with $297 million or $1.22 a share for the first six months of 2005.

During a July 2006 heat wave, electric service to a number of customers in Con Edison of New York's Long Island City distribution network in Queens, New York was interrupted. The company now expects its earnings for the year 2006 to be in the range of $2.75 to $3.00 per share. The company's previous forecast of 2006 earnings was in the range of $2.90 to $3.10 per share.

The Companies' results of operations for the three and six months ended June 30, 2006, as compared with the 2005 periods, reflect growth in weather- adjusted sales, milder winter and spring weather, the Companies' rate plans (including the electric rate plan that took effect in April 2005) and, for Con Edison, the results of the competitive energy businesses' including net mark- to-market losses. The following table presents the effect on earnings per share and net income for the second quarter and first six months of 2006, as compared to the 2005 periods, resulting from these and other major factors:

                                 Second Quarter         Six Months Ended
                                   Variation                Variation

                                           Net Income   Earnings    Net Income
                               Earnings  (Millions of     per     (Millions of
                               per Share     Dollars)    Share        Dollars)

    Con Edison of New York
         Sales growth
          (estimated)             $0.03          $7       $0.06          $14
         Impact of weather in
          2006 versus 2005
           (estimated)            (0.04)        (10)      (0.12)         (29)
         Electric rate plan
          (estimated)              0.11          29        0.42          102
         Gas rate plan
          (estimated)              0.02           4        0.05           11
         Steam rate plan
          (estimated)              0.02           4        0.05           13
         Higher operations
          and maintenance
          expense                 (0.05)        (13)      (0.09)         (21)
         Stock-based
          compensation
          expense                     -          (1)      (0.02)          (6)
         Higher depreciation
          and property taxes      (0.06)        (14)      (0.17)         (41)
         Higher interest
          charges                 (0.04)        (10)      (0.06)         (15)
         Other (includes
          effect of dilution
          on earnings per share)  (0.02)         (1)      (0.03)          (1)
    Total Con Edison of New York  (0.03)         (5)       0.09           27
    Orange and Rockland Utilities     -          (2)      (0.03)          (7)
    Competitive energy businesses
         Earnings excluding
          mark-to-market
          losses (net)             0.08          20        0.13           31
         Mark-to-market
          losses (net)            (0.02)         (5)      (0.14)         (34)
    Other, including parent
     company expenses                 -           -       (0.04)         (11)
    Discontinued operations           -           1        0.01            2
    Total variation               $0.03          $9       $0.02           $8

The earnings per share variations shown above reflect the dilutive effect of a higher weighted average number of common shares outstanding in the 2006 three-month and six-month periods (246 million shares in each period) than in the 2005 three-month and six-month periods (243 million shares in each period).

For the three months ended June 30, 2006, amounts of electricity and steam delivered by Con Edison of New York, after adjusting for variations in weather and billing days in the period, increased by 2.0 percent and 0.3 percent compared with the 2005 period, respectively. Gas deliveries, after adjusting for variations in weather and billing days in the period, decreased 2.2 percent compared with the prior period.

For the first six months of 2006, amounts of electricity delivered by Con Edison of New York, after adjusting for variations in weather and billing days in the period, increased 1.3 percent. Gas and steam deliveries, after adjusting for variations in weather and billing days in the period, decreased 0.4 percent and 1.0 percent, respectively, as compared with the 2005 period.

Refer to the attachments to this press release for the consolidated balance sheets at June 30, 2006 and December 31, 2005 and the consolidated income statements for the three and six months ended June 30, 2006 and 2005. For additional information related to utility sales and revenues go to the Con Edison Web site at http://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; Consolidated Edison Solutions, Inc., a retail energy supply and services company; Consolidated Edison Energy, Inc., a wholesale energy supply company; and Consolidated Edison Development, Inc., a company that owns and operates generating plants and participates in other infrastructure projects.



                            Consolidated Edison, Inc.
                            CONSOLIDATED BALANCE SHEET
                                   (Unaudited)

                                              June 30, 2006  December 31, 2005
                                                      (Millions of Dollars)
    ASSETS
    UTILITY PLANT, AT ORIGINAL COST
      Electric                                    $14,088             $13,586
      Gas                                           3,133               3,044
      Steam                                         1,662               1,624
      General                                       1,585               1,541
      TOTAL                                        20,468              19,795
      Less: Accumulated depreciation                4,513               4,355
      Net                                          15,955              15,440
      Construction work in progress                   915                 771
    NET UTILITY PLANT                              16,870              16,211
    NON-UTILITY PLANT
      Unregulated generating assets, less
       accumulated depreciation
       of $115 and $102 in 2006 and 2005,
       respectively                                   797                 810
      Non-utility property, less
       accumulated depreciation of $34 and
       $31 in 2006 and 2005, respectively              35                  38
      Non-utility property held for sale              -                    52
      Construction work in progress                     1                   1
    NET PLANT                                      17,703              17,112
    CURRENT ASSETS
      Cash and temporary cash investments              63                  81
      Restricted cash                                  18                  15
      Accounts receivable -- customers, less
       allowance for uncollectible accounts
       of $40 and $39 in 2006 and 2005,
       respectively                                   678               1,025
      Accrued unbilled revenue                        111                 116
      Other receivables, less allowance for
       uncollectible accounts of $5 and $6
       in 2006 and 2005, respectively                 388                 350
      Fuel oil, at average cost                        60                  47
      Gas in storage, at average cost                 205                 248
      Materials and supplies, at average cost         138                 130
      Prepayments                                     148                 434
      Fair value of derivative assets                 107                 331
      Recoverable energy costs                        200                 221
      Current assets held for sale                    -                     8
      Deferred derivative losses                       77                   9
      Other current assets                            217                 147
    TOTAL CURRENT ASSETS                            2,410               3,162
    INVESTMENTS                                       269                 265
    DEFERRED CHARGES, REGULATORY ASSETS
     AND NONCURRENT ASSETS
      Goodwill                                        406                 406
      Intangible assets, less accumulated
       amortization of $29 and $24 in 2006
       and 2005, respectively                          85                  90
      Prepaid pension costs                         1,437               1,474
      Regulatory assets                             2,066               2,017
      Other deferred charges and noncurrent assets    278                 324
    TOTAL DEFERRED CHARGES, REGULATORY
     ASSETS AND NONCURRENT ASSETS                   4,272               4,311
    TOTAL ASSETS                                  $24,654             $24,850


    The accompanying notes are an integral part of these financial statements.



                            Consolidated Edison, Inc.
                            CONSOLIDATED BALANCE SHEET
                                   (Unaudited)

                                              June 30, 2006  December 31, 2005
                                                       (Millions of Dollars)
    CAPITALIZATION AND LIABILITIES
    CAPITALIZATION
      Common shareholders' equity
       (See Statement of Common
        Shareholders' Equity)                      $7,375              $7,310
      Preferred stock of subsidiary                   213                 213
      Long-term debt                                8,063               7,398
    TOTAL CAPITALIZATION                           15,651              14,921
    MINORITY INTERESTS                                 42                  42
    NONCURRENT LIABILITIES
      Obligations under capital leases                 28                  30
      Provision for injuries and damages              166                 167
      Pensions and retiree benefits                   284                 223
      Superfund and other environmental costs         264                 238
      Asset retirement obligations                     97                  94
      Noncurrent liabilities held for sale            -                     9
      Other noncurrent liabilities                    104                  64
    TOTAL NONCURRENT LIABILITIES                      943                 825
    CURRENT LIABILITIES
      Long-term debt due within one year               44                  22
      Notes payable                                   352                 755
      Accounts payable                                963               1,236
      Customer deposits                               224                 229
      Accrued taxes                                    31                  94
      Accrued interest                                125                 102
      Accrued wages                                    85                  77
      Fair value of derivative liabilities            260                 133
      Deferred derivative gains                        14                 224
      Deferred income taxes -- recoverable
       energy costs                                    82                  90
      Current liabilities held for sale               -                    12
      Other current liabilities                       258                 349
    TOTAL CURRENT LIABILITIES                       2,438               3,323
    DEFERRED CREDITS AND REGULATORY LIABILITIES
      Deferred income taxes and investment
       tax credits                                  3,726               3,644
      Regulatory liabilities                        1,831               2,062
      Other deferred credits                           23                  33
    TOTAL DEFERRED CREDITS AND REGULATORY
     LIABILITIES                                    5,580               5,739
    TOTAL CAPITALIZATION AND LIABILITIES          $24,654             $24,850


    The accompanying notes are an integral part of these financial statements.



                            Consolidated Edison, Inc.
                          CONSOLIDATED INCOME STATEMENT
                                   (Unaudited)

                                                For the           For the
                                         Three Months Ended  Six Months Ended
                                                June 30,          June 30,
                                             2006     2005     2006     2005
                                       (Millions of Dollars/Except Share Data)
    OPERATING REVENUES
         Electric                          $1,666   $1,640   $3,425   $3,144
         Gas                                  349      354    1,192    1,082
         Steam                                106       96      381      363
         Non-utility                          434      305      874      597
    TOTAL OPERATING REVENUES                2,555    2,395    5,872    5,186
    OPERATING EXPENSES
         Purchased power                    1,019      958    2,203    1,888
         Fuel                                 145      139      400      331
         Gas purchased for resale             189      201      745      653
         Other operations and maintenance     437      405      877      819
         Depreciation and amortization        153      146      305      287
         Taxes, other than income taxes       299      281      617      551
         Income taxes                          65       39      169      149
    TOTAL OPERATING EXPENSES                2,307    2,169    5,316    4,678
    OPERATING INCOME                          248      226      556      508
    OTHER INCOME (DEDUCTIONS)
         Investment and other income            8       11       20       17
         Allowance for equity funds used
          during construction                   1      -          2        8
         Preferred stock dividend
          requirements of subsidiary           (3)      (3)      (6)      (6)
         Other deductions                      (4)      (4)      (9)     (10)
         Income taxes                           6        2       (2)       6
    TOTAL OTHER INCOME (DEDUCTIONS)             8        6        5       15
    INTEREST EXPENSE
         Interest on long-term debt           119      113      232      219
         Other interest                        12        1       25       10
         Allowance for borrowed funds
          used during construction             (1)     -         (2)      (6)
    NET INTEREST EXPENSE                      130      114      255      223
    INCOME FROM CONTINUING OPERATIONS         126      118      306      300
    INCOME FROM DISCONTINUED OPERATIONS
     (NET OF INCOME TAXES)                     (2)      (3)      (1)      (3)
    NET INCOME                               $124     $115     $305     $297
    EARNINGS PER COMMON SHARE -- BASIC
    Continuing operations                   $0.51    $0.48    $1.24    $1.23
    Discontinued operations                 (0.01)   (0.01)     -      (0.01)
    Net income                              $0.50    $0.47    $1.24    $1.22
    EARNINGS PER COMMON SHARE -- DILUTED
    Continuing operations                   $0.51    $0.48    $1.24    $1.23
    Discontinued operations                 (0.01)   (0.01)     -      (0.01)
    Net income                              $0.50    $0.47    $1.24    $1.22
    DIVIDENDS DECLARED PER SHARE OF
     COMMON STOCK                          $0.575   $0.570   $1.150   $1.140
    AVERAGE NUMBER OF SHARES OUTSTANDING
     -- BASIC (IN MILLIONS)                 245.9    243.4    245.7    243.1
    AVERAGE NUMBER OF SHARES OUTSTANDING
     -- DILUTED (IN MILLIONS)               246.7    244.2    246.7    243.8


    The accompanying notes are an integral part of these financial statements.

SOURCE Consolidated Edison, Inc. -0- 08/02/2006 /CONTACT: Michael Clendenin of Consolidated Edison, Inc., +1-212-460-4111/ /Web site: http://www.coned.com / (ED) CO: Consolidated Edison, Inc.; Con Edison

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