NewsCon Edison Media Relations
Richard D. Mulieri, Director
Telephone: (212) 460-4111
For Immediate Release: July 22, 1997
Consolidated Edison Company of New York, Inc. announced today (TUESDAY, JULY 22, 1997) its financial results for the second quarter of 1997 and declared a dividend of 52 ˝ cents a share on its common stock payable September 15, 1997 to stockholders of record as of August 13, 1997.
The Company's net income for common stock for the second quarter of 1997 was $42,956,000 or $.18 a share on an average of 235,016,000 shares outstanding. This compares with $66,807,000 or $.28 a share for the second quarter of 1996 on an average of 234,974,000 shares outstanding.
Earnings for the first six months of 1997 were $204,960,000 or $.87 a share on an average of 235,009,000 shares outstanding compared with $249,250,000 or $1.06 a share for the first six months of 1996 on an average of 234,968,000 shares outstanding.
The Company also reported net income for common stock for the 12 months ended June 30, 1997 of $643,878,000 or $2.74 a share on an average of 234,997,000 shares outstanding compared with $677,891,000 or $2.89 a share on an average of 234,956,000 shares outstanding for the 12 months ended June 30, 1996 and $2.93 a share for calendar year 1996.
The Company stated that the decrease in earnings in 1997 was primarily weather-related and the result of the agreements covering the Company’s electric rates.
Electric sales volume (other than off-system sales) for the first six months of 1997 was 1.5 percent lower than the comparable 1996 period primarily because the second quarter of 1997 was approximately 22 percent cooler than normal. Electric sales during the very warm weather at the end of June 1997 are not recognized as revenues until after June when the sales are billed to customers. Firm gas sales volume for the first six months of 1997 was 9.5 percent lower than the comparable 1996 period and steam sales volume for the first six months of 1997 was 13.8 percent lower than the comparable 1996 period, primarily because the first quarter of 1997 was approximately 16 percent warmer than the first quarter of 1996 (which was a colder than normal period). Under the agreements covering the Company’s rates, weather-related variations in electric and steam sales affect earnings, but most weather-related variations in gas sales do not.
Under the 1995 electric rate agreement, the allowed return on common equity and the level of incentive opportunities for the rate year ended March 31, 1997 were lower than for the prior rate year. Effective April 1, 1997, the Company implemented for financial statement purposes the material provisions of the electric rate plan under the Company’s Settlement Agreement in the New York State Competitive Opportunities proceeding (including the plan’s rate reductions). The Settlement Agreement is subject to approval by the New York State Public Service Commission.
For information about the Settlement Agreement and changes to the Company’s business, see "PSC Settlement Agreement" in the Management’s Discussion and Analysis section of the Company’s 1996 Form 10-K and First Quarter 1997 Form 10-Q. See also the Company’s Form 8-K, dated June 17, 1997.
Con Edison is one of the nation’s largest investor-owned utilities, with nearly $7 billion in annual revenues and $14 billion in assets. The Company provides electric, gas and steam service to three million customers in New York City and Westchester County, New York.