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Introduction & Market Context
Consolidated Edison Inc. (NYSE:ED) presented its first quarter 2025 earnings on May 1, reaffirming its position as a pure-play regulated utility focused on building and maintaining safe and reliable energy infrastructure to support New York State’s energy policies. The company’s stock closed at $112.75 on the day of the announcement, down slightly by 0.15%.
As shown in the following overview of Con Edison’s business strategy and service territory:
The utility continues to benefit from revenue predictability and a transparent regulatory process in New York, with approximately $38 billion in capital investments forecasted from 2025-2029 and a projected 8.2% annual utility rate base growth target over the same period. Con Edison maintains a simplified capital structure with no long-term holding company debt while delivering industry-leading safe and reliable service.
Quarterly Performance Highlights
Con Edison reported strong first quarter results, with adjusted earnings per share of $2.26, compared to $2.15 in the first quarter of 2024. GAAP earnings per share were also $2.26, up from $2.08 in the prior-year period. The company reaffirmed its 2025 adjusted EPS guidance range of $5.50-$5.70.
The following slide highlights the company’s Q1 2025 financial performance:
The improved performance was primarily driven by increases in rate base and the steam rate plan. Key contributors to the year-over-year EPS growth included steam base rate increases (+$0.07), higher electric rate base (+$0.05), higher gas rate base (+$0.03), and higher income from allowance for funds used during construction (+$0.02).
Regulatory Updates
Con Edison reported significant regulatory developments during the quarter. Orange and Rockland Utilities, Inc. (O&R) received approval for its joint proposal with a 9.75% return on equity and 48% equity ratio. Meanwhile, Consolidated Edison Company of New York, Inc. (CECONY) filed for new electric and gas rates in January 2025 and submitted an update in early April 2025.
The company’s rate filings support new electric and gas rates effective January 1, 2026, with a proposed return on equity of 10.00% and an equity ratio of 48%. The proposed rate changes include increases of $1,608 million, $937 million, and $871 million for electric over the next three years, and $349 million, $269 million, and $174 million for gas.
The regulatory environment in New York provides revenue predictability through mechanisms such as revenue decoupling and weather normalization clauses, while allowing for reduced regulatory lag through fully-forecasted rate years and timely recovery of major costs.
Investment Strategy and Growth Outlook
Con Edison outlined an ambitious long-term investment plan to maintain reliability, meet growing demand, and enhance resiliency. The company has identified $72 billion in investments in its CECONY Integrated Long-Range Plan, with over $66 billion dedicated to core service supporting safety and reliability.
As illustrated in the following breakdown of the long-range investment plan:
The investments are strategically allocated across core service (46%), clean energy (4%), climate resilience (4%), and multi-value projects (34%) that serve multiple purposes. These investments will support economic growth and development in New York City and Westchester County.
The company’s rate base is projected to grow substantially over the next several years, with an 8.2% compound annual growth rate from 2020 to 2029. The following chart illustrates this growth trajectory:
To finance these investments, Con Edison outlined a comprehensive financing plan for 2025-2029, including common equity issuances of $1,350 million in 2025, $1,850 million in 2026, and $4,300 million in 2027-2029. The company has already completed its planned 2025 equity issuance of $631 million in March.
Competitive Positioning and Customer Focus
Con Edison emphasized its competitive position regarding customer affordability. The company’s electric customer bills are lower than the proxy peer average on both a total bill and share of wallet basis, as demonstrated by data from S&P Market Intelligence and EIA.
The company also highlighted its efforts to support approximately 466,000 low-income customers (14% of its customer base) through Energy Affordability Programs (EAP). These programs provided $311 million in discounts in 2024, a 17% increase over 2023, to help make bills more affordable for vulnerable customers.
Corporate Structure and Financial Position
Con Edison’s organizational structure remains focused on its regulated utility operations, with CECONY representing 93% of total assets, as shown in the following breakdown:
The company’s capital structure as of March 31, 2025, consisted of $25,353 million in debt (52%) and $23,783 million in equity (48%), for a total of $49,136 million.
Con Edison maintained its status as a Dividend Aristocrat and King, having increased its dividend for 51 consecutive years with a compound annual growth rate of 5.59%. On April 17, 2025, the company declared a quarterly dividend of 85 cents per share on its common stock.
Forward-Looking Statements
Con Edison continues to execute its strategy with robust investments in infrastructure to maintain its world-class reliability and support the clean energy transition. The company’s focus on building and maintaining safe and reliable regulated energy infrastructure positions it well to support New York State’s energy policy objectives while delivering long-term value to shareholders.
The proposed electric and gas rate plans will support economic growth and development in New York City and Westchester County through more than $21 billion in investments over the next three years, reinforcing Con Edison’s commitment to providing essential services while advancing clean energy goals.
Full presentation:
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