Consolidated Edison, Inc. (ED) SEC Filings & Earnings Calls

Regulatory approval risk; joint proposal subject to NYSPSC approval.

“Joint Proposal is subject to approval by the New York State Public Service Commission.” · word for word

Regulatory Risk from Weld Investigation

“CECONY voluntarily disclosed its initial review and findings to the NYSDPS which, in turn, initiated its own investigation into CECONY’s compliance with weld requirements under the New York State Public Service Law and the prudence of CECONY’s oversight of the weld testing process that could result in adverse regulatory action against the company.” · word for word

Income Tax Regulatory Asset Recovery Risk

“The Utilities would record a liability or impair a portion of the regulatory assets associated with this understatement if the NYSPSC were to issue an order that required the Utilities to write off all or a portion of their existing regulatory asset.” · word for word

Regulatory changes in New York may constrain future rate increases and increase compliance costs.

“New law requires budget-constrained rate plans limiting revenue increases to average CPI growth; extends tax rate increase.”

Equity dilution risk from ATM program; $1.8B still available for issuance.

“ATM program has approximately $1.8 billion of common stock available for issuance.”

Increased leverage from debt issuance.

“Issuance of $1.3B in debentures.”

Potential dilution from equity issuance.

“Up to $2B in common shares may be sold.”

Regulatory disallowance risk from income tax understatement

“The Utilities’ inadvertent understatement of a portion...of their calculation of total federal income tax expense for ratemaking purposes...accumulated significant income tax regulatory assets ($1,031 million...as of March 31, 2026)” · word for word

Weld integrity and regulatory investigation

“CECONY determined that in some instances third-party contractors engaged in misconduct by substituting duplicate weld films...NYSDPS...initiated its own investigation” · word for word

Relative TSR Underperformance

“Actual 20 th 0 0” · word for word

Regulatory Dependency

“Con Edison of New York's electric and gas rate case and joint proposal” · word for word

Cybersecurity Risk

“The Company has identified cybersecurity as a key enterprise risk.” · word for word

Interest Rate Sensitivity

“The change in the actuarial present value of the accumulated pension benefit for the Company’s President and Chief Executive Officer and Con Edison of New York’s Chief Executive Officer (Mr. Cawley) in 2025 was $5,768,724, which was primarily due to the decrease in the discount rate from 5.70% to 5.50%.” · word for word

Debt covenant risk: consolidated debt to total capital ratio not to exceed 0.65 to 1.

“Covenant that ratio of consolidated debt to consolidated total capital not at any time exceed 0.65 to 1.”

Potential dilution from physical settlement of forward sale

“If physically settled, Con Edison will issue Common Shares, resulting in dilution to earnings per share and return on equity”

Regulatory risk from NYSPSC rate plans

“Three-year CECONY electric and gas joint proposal approved by NYSPSC in January 2026” · word for word

Regulatory disallowance risk from NYSPSC audit

“The NYSPSC continued its focused operations audit of the Utilities' financial accounting for income taxes. The audit is investigating the Utilities’ inadvertent understatement of a portion, the amount of which may be material, of their calculation of total federal income tax expense for ratemaking purposes related to the calculation of plant retirement-relat” · word for word

Tariff cost inflation on materials

“Although these tariffs have not had a significant impact on the Companies' operations or financial condition to date, the cost of materials have increased during 2025 across various supply chain contract portfolios. If the tariffs remain in place, the cost of materials is anticipated to continue to increase and also may lead to supply chain disruptions.” · word for word

Equity dilution from planned issuance

“Con Edison plans to issue up to $1,100 million of common equity in 2026... approximately $1,200 million in 2027 and up to $3,300 million in aggregate during 2028 through 2030” · word for word

Transaction subject to customary closing conditions and preferential rights of founding members; may not close as expected.

“Transaction is expected to close in the first half of 2026, subject to customary closing conditions... potential exercise of certain preferential rights.” · word for word

Leverage covenant (debt/total capital ≤0.65) and lien limitation (≤10% net tangible assets) impose financial constraints; cross-acceleration on material debt >$150M could trigger default cascade.

“CECONY’s ratio of consolidated debt to consolidated total capital not at any time exceed 0.65 to 1; CECONY will not create, assume or suffer a lien or other encumbrance on its assets exceeding 10 percent of CECONY’s consolidated net tangible assets; acceleration of maturity of any material debt (in excess of $150 million) enables holders to accelerate maturi” · word for word

No material risk; routine debt financing for regulated utility.

“Debt offering is part of normal capital management for a utility.”

Regulatory risk: rate plans may not provide reasonable return.

“Utility subsidiaries' rate plans may not provide a reasonable return” · word for word

Cyber attack risk could adversely affect operations.

“A cyber attack could adversely affect it” · word for word

Supply chain disruptions and inflation risks.

“Risks related to supply chain disruptions, inflation and the imposition of tariffs” · word for word

Regulatory Disallowance Risk

“In May 2024, the NYSPSC issued an order denying an April 2023 petition by CECONY that requested permission to capitalize costs to implement its new customer billing and information system to the extent those costs exceeded the $421 million cap established in CECONY’s 2020 – 2022 electric and gas rate plans.” · word for word

Weld Investigation Risk

“CECONY voluntarily disclosed its initial review and findings to the NYSDPS which, in turn, initiated its own investigation into CECONY’s compliance with weld requirements under the New York State Public Service Law and the prudence of CECONY’s oversight of the weld testing process that could result in adverse regulatory action against the company.” · word for word

Regulatory approval risk: Joint proposal subject to NYSPSC approval; outcome uncertain.

“Joint Proposal is subject to approval by the NYSPSC.” · word for word

Gas segment rate decrease: Gas rate reduction of $46M in 2026 could pressure gas segment profitability.

“Gas Rate Year 1: 2026 ($46) million.”