NewsCon Edison Public Information
Richard D. Mulieri, Director
Telephone: (212) 460-4111, Office Hours,
(212) 460-6981, All Other Times
For Immediate Release: April 22, 1997
Consolidated Edison Company of New York, Inc. announced today (TUESDAY, APRIL 22, 1997) its financial results for the first quarter of 1997 and declared a dividend of 52 1/2 cents a share on its common stock payable June 15, 1997 to stockholders of record as of May 14, 1997.
The Company's net income for common stock for the first quarter of 1997 was $162,004,000 or $.69 a share on an average of 235,001,000 shares outstanding. This compares with $182,443,000 or $.78 a share for the first quarter of 1996 on an average of 234,963,000 shares outstanding.
The Company also reported net income for common stock for the 12 months ended March 31, 1997 of $667,729,000 or $2.84 a share on an average of 234,987,000 shares outstanding compared with $678,593,000 or $2.89 a share on an average of 234,943,000 shares outstanding for the 12 months ended March 31, 1996 and $2.93 a share for calendar year 1996.
The Company stated that the decreases in earnings in the 1997 periods reflected primarily two factors: (1) the provisions of the 1995 electric rate agreement, which provided a lower allowed return on common equity and a lower level of incentive opportunities beginning in the second quarter of 1996; and (2) the impact of the milder than normal winter weather in 1997, which resulted in lower steam revenues. The first quarter of 1997 was almost 17 percent warmer than the first quarter of 1996, which was a colder than normal period.
Electric sales volume in the Company's service territory in the first quarter of 1997, excluding off-system sales, decreased 2.0 percent from the 1996 period. Firm gas sales volume decreased 12.5 percent and steam sales volume decreased 14.5 percent from the 1996 period. The decreases in sales volumes were primarily due to milder than normal winter weather in the 1997 period, as compared with colder than normal winter weather in the 1996 period. Pursuant to the electric revenue adjustment and revenue per customer mechanisms of the 1995 electric rate agreement, most of the variations in electric sales from the level used in setting rates are subject to reconciliation and deferral for refund to or recovery from customers and therefore do not affect earnings. Under the current gas rate agreement, most weather-related variations in gas sales likewise do not affect earnings.
For information about the Company's March 1997 Settlement Agreement with the staff of the Public Service Commission and changes to the Company's business, see "PSC Settlement Agreement" in the Management's Discussion and Analysis section of the Company's Annual Report on Form 10-K
for the year ended December 31, 1996.