Con Edison Reports 2015 First Quarter Earnings
Consolidated Edison, Inc. (Con Edison) [NYSE: ED] today reported first quarter net income for common stock of $370 million or $1.26 a share compared with $361 million or $1.23 a share in 2014. Adjusted earnings, which exclude the effects of its lease in/lease out (LILO) transactions and the net mark-to-market effects of the competitive energy businesses (CEBs), were $365 million or $1.25 a share in 2015 compared with $343 million or $1.17 a share in 2014.
"The company experienced strong financial performance in the first quarter, and our workforce performed admirably during the challenges of a persistent, lingering winter," said John McAvoy, chairman and CEO of Con Edison. "We are also very pleased with a proposed settlement with the New York State Public Service Commission that will keep electric delivery rates flat for our customers through 2016, marking the third consecutive year of no customer delivery rate increases, and providing resources for investments essential to delivering safe and reliable service. In addition, we will continue plans to implement a smart meter program to further enhance customer service, grid reliability and outage management, while encouraging expansion of new customer-based technologies."
The following table is a reconciliation of Con Edison’s reported earnings per share to adjusted earnings per share and reported net income to adjusted earnings for the three months ended March 31, 2015 and 2014.
For the year 2015, the company expects its adjusted earnings to be in the range of $3.90 to $4.05 per share. The company’s previous forecast of adjusted earnings was in the range of $3.80 to $4.00 per share. The higher range reflects primarily stronger than forecasted financial performance at CECONY due to the impact of the colder than normal winter on steam delivery revenues. Adjusted earnings per share exclude the net mark-to-market effects of the CEBs.
The results of operations for the three months ended March 31, 2015, as compared to the 2014 period, reflect primarily changes in the rate plans of Con Edison’s utility subsidiaries, including growth in its gas delivery service related to oil-to-gas conversions, and lower operations and maintenance expenses. The rate plans provide for revenues to cover expected increases in certain operations and maintenance expenses and depreciation reflecting primarily the impact of higher utility plant balances. The results of operations also include the impact of the LILO transactions in 2014 and the net mark-to-market effects of the CEBs.
Operations and maintenance expenses for CECONY were lower in the 2015 period reflecting lower electric operating costs and lower costs for support and protection of company underground facilities to accommodate municipal projects, offset in part by higher gas operating costs attributable to emergency response.
The following table presents the estimated effect on earnings per share and net income for common stock for the 2015 period compared to the 2014 period, resulting from these and other major factors:
Consolidated Edison, Inc. is one of the nation's largest investor-owned energy companies, with approximately $13 billion in annual revenues and $44 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 services company; and Consolidated Edison Development, Inc., a company that develops, owns and operates renewable and energy infrastructure projects.