CONSOLIDATED EDISON INC : Management's Discussion and Analysis of Financial Condition and Results of Operations (form 10-Q)

November 05, 2020 at 05:11 pm EST

This combined management's discussion and analysis of financial condition and
results of operations (MD&A) relates to the consolidated financial statements
(the Third Quarter Financial Statements) included in this report of two separate
registrants: Consolidated Edison, Inc. (Con Edison) and Consolidated Edison
Company of New York, Inc. (CECONY). As used in this report, the term the
"Companies" refers to Con Edison and CECONY. CECONY is a subsidiary of Con
Edison and, as such, information in this management's discussion and analysis
about CECONY applies to Con Edison.

This MD&A should be read in conjunction with the Third Quarter Financial
Statements and the notes thereto, the MD&A in Item 7 of the Companies' combined
Annual Report on Form 10-K for the year ended December 31, 2019 (File Nos.
1-14514 and 1-1217, the Form 10-K) and the MD&A in Part 1, Item 2 of the
Companies' combined Quarterly Reports on Form 10-Q for the quarterly periods
ended March 31, 2020 and June 30, 2020 (File Nos. 1-14514 and 1-1217).

Information in any item of this report referred to in this discussion and
analysis is incorporated by reference herein. The use of terms such as "see" or
"refer to" shall be deemed to incorporate by reference into this discussion and
analysis the information to which reference is made.

Con Edison, incorporated in New York State in 1997, is a holding company that
owns all of the outstanding common stock of CECONY, Orange and Rockland
Utilities, Inc. (O&R), Con Edison Clean Energy Businesses, Inc. and Con Edison
Transmission, Inc. As used in this report, the term the "Utilities" refers to
CECONY and O&R.

                                    Con Edison

          CECONY           O&R               Clean Energy Businesses

Con Edison Transmission


                       •RECO                                               •CET Electric
                                                                           •CET Gas



Con Edison's principal business operations are those of CECONY, O&R, the Clean
Energy Businesses and Con Edison Transmission. CECONY's principal business
operations are its regulated electric, gas and steam delivery businesses. O&R's
principal business operations are its regulated electric and gas delivery
businesses. The Clean Energy Businesses develop, own and operate renewable and
energy infrastructure projects and provide energy-related products and services
to wholesale and retail customers. Con Edison Transmission invests in electric
transmission facilities and gas pipeline and storage facilities.

Con Edison seeks to provide shareholder value through continued dividend growth,
supported by earnings growth in regulated utilities and contracted electric and
gas assets. The company invests to provide reliable, resilient, safe and clean
energy critical for New York City's growing economy. The company is an industry
leading owner and operator of contracted, large-scale solar generation in the
United States. Con Edison is a responsible neighbor, helping the communities it
serves become more sustainable.

CECONY

Electric


CECONY provides electric service to approximately 3.5 million customers in all
of New York City (except a part of Queens) and most of Westchester County, an
approximately 660 square mile service area with a population of more than nine
million.

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In 2019, the New York State Department of Environmental Conservation (NYSDEC)
issued regulations that may require the retirement of fossil-fueled electric
generating units in New York City. The NYSDEC rule limits nitrous oxides (NOx)
emissions during the ozone season from May through September and affects older
peaking units that are generally located downstate and needed during periods of
high electric demand or for local reliability purposes. Compliance with the rule
will require affected units (approximately 1,400 MW, of which 80 MW is owned by
CECONY) to cease operation during the ozone season, install emission controls,
repower, or retire by 2023 or 2025. The New York System Operator (NYISO), in its
2020 Reliability Need Assessment study, that is subject to NYISO board approval,
identified local and bulk transmission system reliability needs that are
expected to be caused by the potential retirement of some of the impacted units.
CECONY expects to submit a plan to the NYSPSC in December 2020 to address the
local transmission system reliability needs and expects to submit a plan to the
NYISO to address the bulk transmission system reliability needs in the first
quarter of 2021. CECONY's implementation of all or part of its plans will be
dependent upon the availability of market solutions and/or NYISO's selection of
regulated solutions proposed by others. CECONY estimates that the costs of
implementing plans to comply with the local reliability needs, if required, to
be approximately $860 million over 4 years and is unable to estimate the amount
to implement plans to comply with the bulk reliability needs, if required.
CECONY's potential costs to comply with both requirements are expected to be
recovered, including a full rate of return, in rates from customers.

During the summer of 2020, electric peak demand in CECONY's service area was
11,814 MW (which occurred on July 28, 2020). At design conditions, electric peak
demand in the company's service area would have been approximately 12,276 MW in
2020 compared to the company's forecast of 13,220 MW. The lower actual peak
demand as compared to the forecast was primarily due to the impact of the
COVID-19 pandemic. The company increased its five-year forecast of average
annual change in electric peak demand in its service area at design conditions
from approximately (0.1) percent (for 2020 to 2024) to approximately 0.8 percent
(for 2021 to 2025), because of the lower 2020 weather-adjusted peak demand.

Gas

CECONY delivers gas to approximately 1.1 million customers in Manhattan, the Bronx, parts of Queens and most of Westchester County.



In January 2019, due to gas supply constraints, CECONY filed notice with the
NYSPSC to establish a temporary moratorium beginning in March 2019 on new
applications for firm gas service in most of Westchester County. In July 2020,
the company filed a gas planning analysis with the NYSPSC that stated the
moratorium is expected to be lifted when increased pipeline capacity is achieved
upon completion of the Tennessee pipeline's 300L East project or peak demand is
reduced through efficiency and other demand side reductions to a level that
would enable the company to lift the moratorium. Assuming timely regulatory
approvals, the Tennessee pipeline project is expected to be completed by
November 2023.

In June 2020, CECONY decreased its five-year forecast of average annual growth
of the peak gas demand in its service area at design conditions from
approximately 1.5 percent (for 2020 to 2024) to approximately 1.4 percent (for
2021 to 2025). The decrease reflects the negative impact the current economy is
expected to have on large new construction as well as the projected number of
applications for firm gas service in CECONY's service territory. The decrease
also reflects an expected increase in customers' energy efficiency measures and
electrification of space heating.

Steam

CECONY operates the largest steam distribution system in the United States by producing and delivering approximately 17,313 MMlb of steam annually to approximately 1,576 customers in parts of Manhattan.

In May 2020, CECONY's five-year forecast of average annual change in the peak steam demand in its service area at design conditions remained unchanged at approximately (0.4) percent (for 2021 to 2025).



Collective Bargaining Agreement
In June 2020, CECONY reached a four-year collective bargaining agreement with
its largest union covering approximately 7,100 employees, effective June 21,
2020.



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O&R

Electric


O&R and its utility subsidiary, Rockland Electric Company (RECO) (together
referred to herein as O&R) provide electric service to approximately 0.3 million
customers in southeastern New York and northern New Jersey, an approximately
1,300 square mile service area.

During the summer of 2020, electric peak demand in O&R's service area was 1,428
MW (which occurred on July 27, 2020). At design conditions, electric peak demand
in the company's service area would have been approximately 1,517 MW in 2020
compared to the company's forecast of 1,555 MW. The company decreased its
five-year forecast of average annual change in electric peak demand in its
service area at design conditions from approximately (0.2) percent (for 2020 to
2024) to approximately (0.5) percent (for 2021 to 2025).

Gas

O&R delivers gas to over 0.1 million customers in southeastern New York.



In June 2020, O&R decreased its five-year forecast of average annual growth of
the peak gas demand in its service area at design conditions from approximately
0.7 percent (for 2020 to 2024) to approximately 0.2 percent (for 2021 to 2025).
The decrease reflects an expected increase in customers' energy efficiency
measures and electrification of space heating.

Clean Energy Businesses
Con Edison Clean Energy Businesses, Inc., together with its subsidiaries, are
referred to in this report as the Clean Energy Businesses. The Clean Energy
Businesses develop, own and operate renewable and energy infrastructure projects
and provide energy-related products and services to wholesale and retail
customers. In December 2018, the Clean Energy Businesses acquired Sempra Solar
Holdings, LLC.

Con Edison Transmission
Con Edison Transmission, Inc. invests in electric and gas transmission projects
through its wholly-owned subsidiaries, Consolidated Edison Transmission, LLC
(CET Electric) and Con Edison Gas Pipeline and Storage, LLC (CET Gas). CET
Electric owns a 45.7 percent interest in New York Transco LLC (NY Transco),
which owns and has been selected to build additional electric transmission
assets in New York. CET Gas owns, through subsidiaries, a 50 percent interest in
Stagecoach Gas Services, LLC, a joint venture that owns and operates an existing
gas pipeline and storage business located in northern Pennsylvania and southern
New York. Also, CET Gas and CECONY own 71.2 percent and 28.8 percent interests,
respectively, in Honeoye Storage Corporation, which owns and operates a gas
storage facility in upstate New York. In addition, CET Gas owns an 11.8 percent
interest (that is expected to be reduced to below 10 percent based on the
current project cost estimate and CET Gas' capping of its cash contributions to
the joint venture) in Mountain Valley Pipeline LLC, a joint venture developing a
proposed 300-mile gas transmission project in West Virginia and Virginia. Con
Edison Transmission, Inc., together with CET Electric and CET Gas, are referred
to in this report as Con Edison Transmission.

Certain financial data of Con Edison's businesses are presented below:


                                                 For the Three Months Ended                        For the Nine Months Ended
                                                     September 30, 2020                               September 30, 2020                   At September 30, 2020
(Millions of Dollars, except          Operating                 Net Income for                 Operating             Net Income for
percentages)                          Revenues                  Common Stock                   Revenues               Common Stock       Assets
CECONY                                         $2,872     86  %         $405     82  %          $8,072     87  %          $963     91  %         $47,668     80  %
O&R                                               238      7              27      6                647      7               57      5              3,094      5
Total Utilities                                 3,110     93             432     88              8,719     94            1,020     96             50,762     85
Clean Energy Businesses (a)                       222      7              56     11                566      6                8      1              6,766     11
Con Edison Transmission                             1      -              15      3                  3      -               42      4              1,652      3
Other (b)                                        -         -            (10)     (2)               (2)      -             (12)     (1)               415      1
Total Con Edison                               $3,333    100  %         $493    100  %          $9,286    100  %        $1,058    100  %         $59,595    100  %


(a)Net income for common stock from the Clean Energy Businesses for the three
and nine months ended September 30, 2020 includes $5 million and $(60) million,
respectively, of net after-tax mark-to-market gains/(losses) and reflects $7
million (after-tax) and $29 million (after-tax), respectively, of income
attributable to the non-controlling interest of a tax equity investor in
renewable electric production projects accounted for under the HLBV method of
accounting. See Note O to the Third Quarter Financial Statements.
(b)Other includes parent company and consolidation adjustments.

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Coronavirus Disease 2019 (COVID-19) Impacts
The Companies continue to respond to the Coronavirus Disease 2019 (COVID-19)
global pandemic by reducing the potential risks posed to employees, customers
and other stakeholders by its spread. The Companies continue to employ an
incident command structure led by a pandemic planning team. The Companies
support employee and facility hygiene through mandatory pre-entry symptom
surveys for employees arriving at all company locations, regular cleaning and
disinfecting of all work and common areas, promoting social distancing, imposing
travel limitations on employees and directing employees to work remotely
whenever possible. Employees who test positive for COVID-19 are directed to
quarantine at home and are closely evaluated for close, prolonged contact with
other employees that would require those employees to quarantine at home and,
following the Centers for Disease Control and Prevention guidelines, sick or
quarantined employees return to work when they can safely do so. The Utilities
continue to provide critical electric, gas and steam service to customers during
the pandemic. Additional safety protocols have been implemented to protect
employees, customers and the public, when work at customer premises is required.
As a result of COVID-19 clusters that have arisen in various areas of New York
within the Utilities' service territory, the Utilities have limited their work
in customer premises in the impacted areas to only address emergency,
safety-related and selected service connections requested by customers.

Below is additional information related to the effects of the COVID-19 pandemic and the Companies' actions.

New York State Regulation
In March 2020, New York State Governor Cuomo declared a State Disaster Emergency
for the State of New York, due to the COVID-19 pandemic and signed the "New York
State on PAUSE" executive order that closed all non-essential businesses
statewide. New York State designated utilities, including CECONY and O&R, as
essential businesses that were able to continue a portion of their work during
the effectiveness of the PAUSE order. In May 2020, the "New York Forward" plan
went into effect. New York Forward is a phased plan to reopen businesses in
geographic areas of New York State that meet metrics established by various
public health organizations. In October 2020, Governor Cuomo announced a new
cluster action initiative to address COVID-19 hotspots that have arisen in
various areas of New York within the Utilities' service territory and to impose
new rules and restrictions targeted to areas with the highest concentration of
COVID-19 cases and the surrounding communities. As a result of these COVID-19
clusters, the Utilities have limited their work in customer premises in the
impacted areas to only address emergency, safety-related and selected service
connections requested by customers. Since the emergency declaration, and due to
economic conditions, the NYSPSC and the Utilities have worked to mitigate the
potential impact of the COVID-19 pandemic on the Utilities, their customers and
other stakeholders.

In March 2020, the Utilities began suspending service disconnections, certain
collection notices, final bill collection agency activity, new late payment
charges and certain other fees for all customers. The Utilities also began
providing payment extensions for all customers that were scheduled to be
disconnected prior to the start of the COVID-19 pandemic. In June 2020, the
state of New York enacted a law prohibiting New York utilities, including CECONY
and O&R, from disconnecting residential customers during the COVID-19 state of
emergency. In addition, such prohibition will apply for an additional 180 days
after the state of emergency ends for residential customers who have experienced
a change in financial circumstances due to the COVID-19 pandemic. The law
expires on March 31, 2021. For the three and nine months ended September 30,
2020, the estimated foregone revenues that were not collected by the Utilities
were approximately $21 million and $44 million, respectively, for CECONY and $1
million and $2 million, respectively, for O&R. Also in March 2020, the Utilities
requested and the NYSPSC granted extensions to file their 2019 Earnings
Adjustment Mechanisms (EAMs) reports, which were filed in July 2020. The earned
EAM incentives of approximately $46 million and $3 million for CECONY and O&R,
respectively, are being recovered from customers over a twelve-month period that
began September 2020. See Note K to the Third Quarter Financial Statements.

In June 2020, the NYSPSC directed CECONY to implement a summer cooling credit
program to help mitigate the cost of staying home and running air conditioning
for health-vulnerable low-income customers due to the limited availability of
public cooling facilities as a result of the COVID-19 social distancing
measures. The NYSPSC further ordered that the estimated $70.6 million cost of
the program will be recovered over five years, beginning in January 2021. As of
September 30, 2020, CECONY deferred for later recovery $63.6 million of summer
cooling credit costs.

The Utilities' New York rate plans allow them to defer costs resulting from a
change in legislation, regulation and related actions that have taken effect
during the term of the rate plans once the costs exceed a specified threshold.
For the nine months ended September 30, 2020, the reserve increases to the
allowance for uncollectible accounts associated with the COVID-19 pandemic for
CECONY electric and gas operations and O&R electric operations were $46 million
and $2 million, respectively, and were deferred pursuant to the legislative,
regulatory and related actions provisions of the rate plans as a result of the
New York State on PAUSE and related executive orders. The

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reserve increase to the allowance for uncollectible accounts associated with the
COVID-19 pandemic for O&R gas operations of $1 million did not meet the deferral
threshold at September 30, 2020. The Utilities' New York rate plans also provide
for an allowance for write-offs of customer accounts receivable balances. The
above amounts deferred pursuant to the legislative, regulatory and related
actions provisions were reduced by the amount that the actual write-offs of
customer accounts receivable balances were below the allowance reflected in
rates, which differences were $8 million and $1 million for CECONY and O&R,
respectively, for the nine months ended September 30, 2020.

As of September 30, 2020, CECONY deferred, for New York City residential customers, $46.8 million of higher summer generation capacity supply costs. CECONY expects to recover approximately $17 million of such costs over the period November 2020 through April 2021 and the remaining balance over the period May 2021 through October 2021.



In June 2020, the NYSPSC established a generic proceeding on the impacts of the
COVID-19 pandemic and sought comment on a variety of COVID-19 related issues. In
July 2020, the Utilities submitted joint comments with other large utilities in
New York State that included a formal request to defer all COVID-19 related
costs and for a surcharge mechanism to collect such deferrals based upon the
individual utility's need.

The Utilities' rate plans have revenue decoupling mechanisms in their New York
electric and gas businesses that reconcile actual energy delivery revenues to
the authorized delivery revenues approved by the NYSPSC. See "Liquidity and
Financing," below.

New Jersey State Regulation
In March 2020, New Jersey Governor Murphy declared a Public Health Emergency and
State of Emergency for the State of New Jersey. Since that declaration, the
NJBPU and RECO have mitigated the potential impact of the COVID-19 pandemic on
RECO, its customers and other stakeholders. New Jersey designated utilities,
including RECO, as essential businesses that were able to continue a portion of
their work. RECO modified or suspended certain work in the state. In March 2020,
RECO began suspending late payment charges, terminations for non-payment, and no
access fees during the COVID-19 pandemic. The suspension of these fees is not
expected to be material. See Note K to the Third Quarter Financial Statements.

In July 2020, the NJBPU authorized RECO and other New Jersey utilities to create
a COVID-19-related regulatory asset by deferring prudently incurred incremental
costs related to COVID-19 beginning on March 9, 2020, and through the later of
September 30, 2021, or 60 days after the emergency declaration is no longer in
effect. RECO deferred net incremental COVID-19 related costs of $0.3 million
through September 30, 2020.

Federal Regulation
In March 2020, the North American Electric Reliability Corporation (NERC) issued
guidance that the effects of the COVID-19 pandemic will be considered an
acceptable basis for non-compliance with certain NERC Reliability Standards
requirements that would have required action between March 1, 2020 and July 31,
2020. In addition, it suspended on-site NERC compliance audits until December
31, 2020.

Also in March 2020, FERC announced several actions to ease regulatory obligations in response to the COVID-19 pandemic. These include postponement of certain filing deadlines and the suspension of all audit site visits and investigative testimony.



In April 2020, FERC announced it would expeditiously review and act on requests
for relief in response to the COVID-19 pandemic, give priority to processing
filings that contribute to the business continuity of regulated entities' energy
infrastructure and exercise prosecutorial discretion when addressing events
arising during the COVID-19 pandemic. FERC also approved a blanket waiver of
requirements in Open Access Transmission Tariffs that require entities to hold
meetings in-person and to provide or obtain notarized documents. The blanket
waivers were subsequently extended through January 29, 2021.

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Gas Safety
In March 2020, the U.S. Department of Transportation's Pipeline and Hazardous
Materials Safety Administration (PHMSA) issued a notice staying enforcement of
certain federal operator qualification, control room management and drug testing
requirements during the COVID-19 pandemic. The notice also announced that PHMSA
would exercise discretion in its overall enforcement of other parts of the
pipeline safety regulations. The NYSPSC also provided guidance that it was
staying enforcement of many of the same pipeline safety requirements identified
in the March 2020 PHMSA notice.

In April 2020, the NYSPSC issued an order that extended the deadlines to
complete certain gas inspections by all New York gas utilities, including CECONY
and O&R, from April 1, 2020 to August 1, 2020. The deadlines were subsequently
extended to September 2, 2020, and CECONY and O&R have taken all reasonable
measures to complete such inspections.

Impact of CARES Act on Accounting for Income Taxes
In response to the economic impacts of the COVID-19 pandemic, the Coronavirus
Aid, Relief, and Economic Security (CARES) Act became law on March 27, 2020. The
CARES Act has several key business tax relief measures that may present
potential cash benefits and/or refund opportunities for Con Edison and its
subsidiaries, including permitting a five-year carryback of a net operating loss
(NOL) for tax years 2018, 2019 and 2020, temporary removal of the 80 percent
limitation of NOL carryforwards against taxable income for tax years before
2021, temporary relaxation of the limitations on interest deductions, Employee
Retention Tax Credit and defer payments of employer payroll taxes.

Con Edison will carryback its NOL of $29 million from tax year 2018 to tax year
2013. This will allow Con Edison, mostly at the Clean Energy Businesses, to
receive a $2.5 million net tax refund and to recognize a discrete income tax
benefit of $4 million in the first quarter of 2020, due to the higher federal
statutory tax rate in 2013. See Note J to the Third Quarter Financial
Statements. Con Edison and its subsidiaries are not expecting to have a federal
NOL in tax years 2019 or 2020.

Con Edison and its subsidiaries expect to benefit by the increase in the
percentage for calculating the limitation on the interest expense deduction from
30 percent of Adjusted Taxable Income (ATI) to 50 percent of ATI in 2019 and
2020, which may allow the Companies to deduct 100 percent of interest expense.

The Companies qualify for an Employee Retention Tax Credit created under the
CARES Act for "eligible employers" related to governmental authorities imposing
restrictions that partially suspended their operations for a portion of their
workforce due to the COVID-19 pandemic and the Companies continued to pay them.
For the nine months ended September 30, 2020, Con Edison and CECONY recognized a
tax benefit to Taxes, other than income taxes of $9 million and $5 million,
respectively.

The CARES Act also allows employers to defer payments of the employer share of
Social Security payroll taxes that would have otherwise been owed from March 27,
2020 through December 31, 2020. The Companies intend to defer the payment of
employer payroll taxes for the period April 1, 2020 through December 31, 2020 of
approximately $73 million ($65 million of which is for CECONY). The Companies
will repay one-half of this liability by December 31, 2021 and the other half by
December 31, 2022.

Supply Chain Matters
The Utilities continue to procure the materials and services necessary to
support the phased plan to reopen businesses in New York State, which includes
building an inventory of pandemic-related materials to address anticipated
future needs. They maintain regular communications with key suppliers. There are
currently no significant supply chain-related shortages or issues.

The Clean Energy Businesses have appropriate assets available to them and currently do not anticipate constraints in completing and placing into service wind and solar projects currently under construction.

Cybersecurity


In April 2020, the United States Homeland Security Cybersecurity and
Infrastructure Security Agency issued a joint alert with another agency stating
that there has been a growing use of COVID-19 related themes by malicious cyber
actors and the surge in teleworking has increased the use of potentially
vulnerable services, amplifying the threat to individuals and organizations. The
Companies, their contractors and vendors have experienced cyber threats, but

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none have had a material impact on the Companies. The Companies continue to monitor cybersecurity threats closely.



Accounting Considerations
As a result of the COVID-19 pandemic, both commercial and residential customers
may have increased difficulty paying their utility bills, as a result of a
decline in business, bankruptcies, layoffs and furloughs, among other factors.
CECONY and O&R have existing allowances for uncollectible accounts established
against their customer accounts receivable balances which are reevaluated each
quarter and updated accordingly. Changes to the Utilities' reserve balances that
result in write-offs of customer accounts receivable balances are not reflected
in rates during the term of the current rate plans. During the first nine months
of 2020, the potential economic impact of the COVID-19 pandemic was also
considered in forward-looking projections related to write-off and recovery
rates, resulting in increases to the customer allowance for uncollectible
accounts as detailed herein. CECONY's and O&R's allowances for uncollectible
accounts reserve increased from $65 million and $4.6 million at December 31,
2019 to $111 million and $7.4 million at September 30, 2020, respectively. See
Note A to the Third Quarter Financial Statements and "New York State
Regulation," above.

The Companies test goodwill for impairment at least annually or whenever there
is a triggering event, and test long-lived and intangible assets for
recoverability when events or changes in circumstances indicate that the
carrying value of long-lived or intangible assets may not be recoverable. The
Companies identified no triggering events or changes in circumstances related to
the COVID-19 pandemic that would indicate that the carrying value of long-lived
or intangible assets may not be recoverable at September 30, 2020. See Note A to
the Third Quarter Financial Statements.

Liquidity and Financing
The Companies continue to monitor the impacts of the COVID-19 pandemic on the
financial markets closely, including borrowing rates and daily cash collections.
The Companies have been able to issue commercial paper as needed since the start
of the COVID-19 pandemic in March 2020. See Note D to the Third Quarter
Financial Statements.

In addition, the decline in business activity in the Utilities' service
territory as a result of the COVID-19 pandemic has resulted in lower billed
sales revenues and may continue to do so. The Utilities' rate plans have revenue
decoupling mechanisms in their New York electric and gas businesses that
reconcile actual energy delivery revenues to the authorized delivery revenues
approved by the NYSPSC per month and accumulate the deferred balances
semi-annually under CECONY's electric rate plan (January through June and July
through December, respectively) and annually under CECONY's gas rate plan and
O&R New York's electric and gas rate plans (January through December).
Differences are accrued with interest each month for CECONY and O&R New York's
electric customers and after the annual deferral period ends for CECONY and O&R
New York's gas customers for refund to, or recovery from customers, as
applicable. Generally, the refund to or recovery from customers begins August
and February of each year over an ensuing six-month period for CECONY's electric
customers and February of each year over an ensuing twelve-month period for
CECONY's gas and O&R New York's electric and gas customers. Although these
revenue decoupling mechanisms are in place, lower billed sales revenues and
higher uncollectible accounts would temporarily reduce liquidity at the
Utilities. See Note A to the Third Quarter Financial Statements and "COVID-19
Regulatory Matters" in Note B to the Third Quarter Financial Statements.

In July 2020, Con Edison borrowed $820 million pursuant to an April 2020 credit
agreement that was amended in June 2020 (as amended, the Supplemental Credit
Agreement). Con Edison used the proceeds from the borrowing for general
corporate purposes, including repayment of short-term debt bearing interest at
variable rates. Pursuant to the Supplemental Credit Agreement, the borrowing
bears interest at a variable rate and was converted to a term loan, that matures
on March 29, 2021 (Term Loan). At September 30, 2020, Con Edison had $820
million of borrowings outstanding under the Term Loan. See Note D to the Third
Quarter Financial Statements.

Con Edison and the Utilities also have a $2,250 million credit agreement (Credit
Agreement) in place under which banks are committed to provide loans on a
revolving credit basis until December 2023 ($2,200 million of commitments from
December 2022). Con Edison and the Utilities have not entered into any loans
under the Credit Agreement. See Note D to the Third Quarter Financial
Statements.

Results of Operations
Net income for common stock and earnings per share for the three and nine months
ended September 30, 2020 and 2019 were as follows:

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                                                   For the Three Months Ended September 30,                          For the Nine Months Ended September 30,
                                                    2020            2019            2020           2019              2020            2019             2020           2019
(Millions of Dollars, except per share                                   Earnings                                                         Earnings
amounts)                               Net Income for Common Stock       per Share                      Net Income for Common Stock       per Share
CECONY                                              $405            $414           $1.21          $1.25              $963            $978            $2.88          $2.99
O&R                                                   27              25            0.08           0.07                57              60             0.17           0.18
Clean Energy Businesses (a)                           56              22            0.17           0.07                 8            (19)             0.03         (0.06)
Con Edison Transmission                               15              14            0.04           0.04                42              38             0.13           0.11
Other (b)                                           (10)             (2)          (0.03)         (0.01)              (12)             (9)      (0.04)              (0.02)
Con Edison (c)                                      $493            $473           $1.47          $1.42            $1,058          $1,048

$3.17 $3.20




(a)Net income for common stock from the Clean Energy Businesses for the three
and nine months ended September 30, 2020 includes $5 million or $0.01 a share
and $(60) million or $(0.18) a share, respectively, of net after-tax
mark-to-market gains/(losses) and reflects $7 million or $0.02 a share
(after-tax) and $29 million or $0.08 a share (after-tax), respectively, of
income attributable to the non-controlling interest of a tax equity investor in
renewable electric production projects accounted for under the HLBV method of
accounting. Net income for common stock from the Clean Energy Businesses for the
three and nine months ended September 30, 2019 includes $(17) million or $(0.05)
a share and $(41) million or $(0.13) a share, respectively, of net after-tax
mark-to-market losses and reflects $23 million or $0.07 a share (after-tax) and
$60 million or $0.18 a share (after-tax), respectively, of income attributable
to the non-controlling interest of a tax equity investor in renewable electric
production projects accounted for under the HLBV method of accounting. See Note
O to the Third Quarter Financial Statements.
(b)Other includes parent company and consolidation adjustments.
(c)Earnings per share on a diluted basis were $1.47 a share and $1.42 a share
for the three months ended September 30, 2020 and 2019, respectively, and $3.16
a share and $3.19 a share for the nine months ended September 30, 2020 and 2019,
respectively.

The following tables present the estimated effect of major factors on earnings
per share and net income for common stock for the three and nine months ended
September 30, 2020 as compared with the 2019 period.

--------------------------------------------------------------------------------

Variation for the Three Months Ended September 30, 2020 vs. 2019


                                                        Net Income
                                                        for Common
                                                          Stock
                                        Earnings       (Millions of
                                       per Share         Dollars)
CECONY (a)
Changes in rate plans                          $(0.02)         $(6)

Primarily reflects lower non-weather related steam

net

revenues due to lower usage by customers.



Operations and maintenance                        0.26           85 Reflects lower costs for pension and other
expenses

postretirement benefits of $0.12 a share, which are

reconciled under the rate plans, lower regulatory

assessments and fees of $0.09 a share, which are

collected in revenues from customers, and the

deferral in September 2020, under the legislative,

regulatory and related actions provisions of the

company's electric and gas rate plans, of the

previously recorded reserve increases to the

allowance for uncollectible accounts associated with

the

Coronavirus Disease 2019 (COVID-19) pandemic of

$0.02 a

share, offset in part by estimated food and

medicine spoilage claims related to outages caused by


                                                                    Tropical Storm Isaias of $(0.01) a share.
Depreciation, property taxes and                (0.24)         (79)

Reflects higher depreciation and amortization expense other tax matters

of

$(0.12) a share and higher property taxes of

$(0.10)

a share, both of which are recoverable under

the

rate plans and the absence in 2020 of a reduction


                                                                    in the

sales and use tax reserve upon conclusion of


                                                                    the audit assessment of $(0.02) a share.
Other                                           (0.04)          (9)

Primarily reflects foregone revenues from the

suspension of customers' late payment charges and


                                                                    certain

other fees associated with the COVID-19

pandemic of $(0.05) a share and the dilutive effect


                                                                    of Con Edison's stock issuances of $(0.01) a share.
Total CECONY                                    (0.04)      (9)
O&R (a)
Changes in rate plans                             0.01            2

Reflects an electric base rate increase under the


                                                                    company's rate plans.
Operations and maintenance                   -                    1

Reflects the deferral in September 2020, under the expenses

legislative, regulatory and related actions provision


                                                                    of the

company's New York electric rate plan, of the

previously recorded reserve increase to the allowance

for

uncollectible accounts associated with the

COVID-19 pandemic, offset by estimated food and

medicine spoilage claims related to outages caused by


                                                                    Tropical Storm Isaias.
Depreciation, property taxes and             -                  (1)

other tax matters



Total O&R                                         0.01            2
Clean Energy Businesses
Operating revenues less energy               -                    2

costs


Operations and maintenance                      (0.01)          (4) Primarily reflects timing of maintenance costs.
expenses
Depreciation and amortization            (0.01)             (4)

Reflects an increase in renewable electric production


                                                                    projects in operation during 2020.
Net interest expense                              0.09           29

Primarily reflects lower unrealized losses on


                                                                    interest rate swaps in the 2020 period.
HLBV effects                                      0.05           16

Primarily reflects lower losses from tax equity

projects in the 2020 period.


   Other                                        (0.02)          (5)

Primarily reflects the absence of a prior period

adjustment related to research & development credits


                                                                    recorded in 2019.
Total Clean Energy Businesses                     0.10           34
Con Edison Transmission                      -                    1
Other, including parent company          (0.02)             (8)

Primarily reflects higher New York State income tax. expenses Total Reported (GAAP basis)

$0.05          $20

a.  Under the revenue decoupling mechanisms in the Utilities' New York electric and gas rate plans and the
weather-normalization clause applicable to their gas businesses, revenues are generally not affected by changes in
delivery volumes from levels assumed when rates were approved. In general, the Utilities recover on a current basis the
fuel, gas purchased for resale and purchased power costs they incur in supplying energy to their full-service customers.
Accordingly, such costs do not generally affect Con Edison's results of operations.



58

--------------------------------------------------------------------------------

Variation for the Nine Months Ended September 30, 2020 vs. 2019


                                                          Net Income
                                                          for Common
                                                            Stock
                                          Earnings       (Millions of
                                         per Share         Dollars)
CECONY (a)
Changes in rate plans                              $0.07          $24

Primarily reflects higher gas net base revenues due to

gas

base rates increase in January 2020 under the


                                                                      company's gas rate plan.
Weather impact on steam revenues                  (0.06)         (20)

Reflects the impact of warmer winter weather in the

period.


Operations and maintenance expenses                 0.69          227

Reflects lower costs for pension and other

postretirement benefits of $0.41 a share, which are

reconciled under the rate plans, lower regulatory

assessments and fees that are collected in revenues


                                                                      from

customers of $0.23 a share, lower stock-based

compensation of $0.04 a share and lower healthcare


                                                                      costs

of $0.02 a share, offset in part by estimated


                                                                      food

and medicine spoilage claims related to outages

caused by Tropical Storm Isaias of $(0.01) a share. Depreciation, property taxes and

                  (0.65)        (209)

Reflects higher depreciation and amortization expense other tax matters

of

$(0.38) a share and higher property taxes of

$(0.26) a share, both of which are recoverable under

the

rate plans, the absence in 2020 of a reduction in

the

sales and use tax reserve upon conclusion of the


                                                                      audit

assessment of $(0.02) a share, offset in part by

the

Employee Retention Tax Credit under the CARES Act


                                                                      of $0.01 a share.
Other                                             (0.16)         (37)

Primarily reflects foregone revenues from the

suspension of customers' late payment charges and

certain other fees associated with the COVID-19

pandemic of $(0.10) a share and the dilutive effect of


                                                                      Con Edison's stock issuances of $(0.06) a share.
Total CECONY                                      (0.11)         (15)
O&R (a)
Changes in rate plans                               0.04           11

Reflects electric and gas base rate increases of $0.03

share and $0.01 a share, respectively, under the


                                                                      company's rate plans.
Operations and maintenance expenses               (0.02)          (5)

Primarily reflects incremental costs associated with

the

COVID-19 pandemic and estimated food and medicine

spoilage claims related to outages caused by Tropical


                                                                      Storm

Isaias.


Depreciation, property taxes and                  (0.01)          (4)

Reflects higher depreciation and amortization expense, other tax matters

offset in part by the Employee Retention Tax Credit


                                                                      under the CARES Act.
Other                                             (0.02)          (5)

Primarily reflects higher costs associated with

components of pension and other postretirement

benefits other than service cost of $(0.01) a share. Total O&R

                                         (0.01)          (3)
Clean Energy Businesses
Operating revenues less energy                      0.01            4 Reflects higher revenues from renewable electric
costs

production projects of $0.05 a share, offset in part

by

lower energy services revenues of $(0.04) a share. Operations and maintenance expenses

                 0.01            2 Primarily reflects lower energy services costs.
Depreciation and amortization                     (0.01)          (3)

Reflects an increase in renewable electric production


                                                                      projects in operation during 2020.
Net interest expense                              (0.03)          (9)

Primarily reflects higher unrealized losses on


                                                                      interest rate swaps in the 2020 period.
HLBV effects                                        0.10           31

Primarily reflects lower losses from tax equity


                                                                      projects in the 2020 period.
Other                                               0.01            2

Primarily reflects re-measurement of deferred tax

assets and the Employee Retention Tax Credit under the


                                                                      CARES

Act.


Total Clean Energy Businesses                       0.09           27
Con Edison Transmission                             0.02            4

Primarily reflects lower operations and maintenance

expenses and higher allowance for funds used during

construction (AFUDC) income from Mountain Valley


                                                                      Pipeline, LLC.
Other, including parent company                   (0.02)          (3)

Primarily reflects higher New York State income tax. expenses Total Reported (GAAP basis)

$(0.03)          $10

a.  Under the revenue decoupling mechanisms in the Utilities' New York electric and gas rate plans and the
weather-normalization clause applicable to their gas businesses, revenues are generally not affected by changes in delivery
volumes from levels assumed when rates were approved. In general, the Utilities recover on a current basis the fuel, gas
purchased for resale and purchased power costs they incur in supplying energy to their full-service customers. Accordingly,
such costs do not generally affect Con Edison's results of operations.

--------------------------------------------------------------------------------

The Companies' other operations and maintenance expenses for the three and nine months ended September 30, 2020 and 2019 were as follows:


                                              For the Three Months Ended September 30,         For the Nine Months Ended September 30,
(Millions of Dollars)                                            2020                 2019                       2020                 2019
CECONY
Operations                                                       $423                 $414                     $1,210               $1,190
Pensions and other postretirement benefits                       (20)                   34                       (83)                  100
Health care and other benefits                                     49                   46                        115                  126
Regulatory fees and assessments (a)                                94                  134                        253                  356
Other                                                              51                   84                        219                  250
Total CECONY                                                      597                  712                      1,714                2,022
O&R                                                                79                   81                        232                  225
Clean Energy Businesses                                            59                   53                        165                  168
Con Edison Transmission                                             2                    2                          8                    7
Other (b)                                                         (1)                  (1)                        (3)                 -
Total other operations and maintenance
expenses                                                         $736                 $847                     $2,116               $2,422

(a)Includes Demand Side Management, System Benefit Charges and Public Service Law 18A assessments which are collected in revenues. (b)Includes parent company and consolidation adjustments.



A discussion of the results of operations by principal business segment for the
three and nine months ended September 30, 2020 and 2019 follows. For additional
business segment financial information, see Note L to the Third Quarter
Financial Statements.



60

--------------------------------------------------------------------------------

The Companies' results of operations for the three months ended September 30, 2020 and 2019 were as follows:


                                                                                                           Con Edison
                                         CECONY               O&R           Clean Energy Businesses       Transmission          Other (a)         Con Edison (b)
(Millions of Dollars)                   2020      2019     2020     2019           2020           2019      2020      2019       2020     2019        2020      2019
Operating revenues                    $2,872    $2,877     $238     $241           $222           $247        $1        $1     $-         $(1)      $3,333    $3,365
Purchased power                          447       423       56       61        -              -           -         -          -          (1)         503       483
Fuel                                      24        31     -        -           -              -           -         -          -         -             24        31
Gas purchased for resale                  38        52        9       10              8             36     -         -          -         -             55        98
Other operations and maintenance         597       712       79       81             59             53         2         2        (1)      (1)         736       847
Depreciation and amortization            401       346       23       22             58             53     -         -          -         -            482       421
Taxes, other than income taxes           643       590       22       21              5              5         1     -              2        2         673       618

Operating income                         722       723       49       46             92            100       (2)       (1)        (1)      (1)         860       867
Other income less deductions            (38)       (9)      (4)      (3)              3              1        27        27        (1)      (2)        (13)        14
Net interest expense                     182       181       10       10             22             61         4         7          8        3         226       262
Income before income tax expense         502       533       35       33             73             40        21        19       (10)      (6)         621       619
Income tax expense                        97       119        8        8              8           (12)         6         5      -          (4)         119       116
Net income                              $405      $414      $27      $25            $65            $52       $15       $14      $(10)     $(2)        $502      $503
Income attributable to
non-controlling interest                -         -        -        -                 9             30     -         -          -         -              9        30
Net income for common stock             $405      $414      $27      $25            $56            $22       $15       $14      $(10)     $(2)        $493      $473

(a)Includes parent company and consolidation adjustments. (b)Represents the consolidated results of operations of Con Edison and its businesses.

--------------------------------------------------------------------------------



CECONY
                                      For the Three Months Ended                                      For the Three Months Ended
                                          September 30, 2020                                              September 30, 2019
                                                                                                                                                                       2020-2019
(Millions of Dollars)              Electric            Gas          Steam


      2020 Total       Electric            Gas          Steam          2019 Total          Variation
Operating revenues                   $2,562           $259            $51             $2,872         $2,544           $275            $58              $2,877               $(5)
Purchased power                         443         -                   4                447            418         -                   5                 423                 24
Fuel                                     18         -                   6                 24             27         -                   4                  31                (7)
Gas purchased for resale             -                  38         -                      38         -                  52         -                       52               (14)
Other operations and
maintenance                             469             87             41                597            565            102             45                 712              (115)
Depreciation and
amortization                            305             74             22                401            266             58             22                 346                 55
Taxes, other than income
taxes                                   514             94             35                643            465             87             38                 590                 53
Operating income                       $813          $(34)          $(57)               $722           $803          $(24)          $(56)

 $723               $(1)



Electric

CECONY's results of electric operations for the three months ended September 30, 2020 compared with the 2019 period were as follows:



                                          For the Three Months Ended
(Millions of Dollars)                September 30, 2020   September 30, 2019   Variation
Operating revenues                               $2,562               $2,544         $18
Purchased power                                     443                  418          25
Fuel                                                 18                   27         (9)
Other operations and maintenance                    469                  565        (96)
Depreciation and amortization                       305                  266          39
Taxes, other than income taxes                      514                  465          49
Electric operating income                          $813                 $803         $10

CECONY's electric sales and deliveries for the three months ended September 30, 2020 compared with the 2019 period were:


                                                                   Millions of kWh Delivered                                                              Revenues in Millions (a)
                                                  For the Three Months Ended                                                            For the Three Months Ended
                                                                                                                Percent                                                                               Percent
Description                                 September 30, 2020      September 30, 2019      Variation         Variation           September 30, 2020      September 30, 2019      Variation         Variation
Residential/Religious (b)                                4,001                   3,687            314            8.5  %                         $995                    $923            $72            7.8  %
Commercial/Industrial                                    2,627                   2,831          (204)           (7.2)                            556                     557            (1)           (0.2)
Retail choice customers                                  6,294                   7,339         (1045)          (14.2)                            784                     854           (70)           (8.2)
NYPA, Municipal Agency and other sales                   2,532                   2,756          (224)           (8.1)                            217                     219            (2)           (0.9)
Other operating revenues (c)                              -                  -                 -                      -                           10                     (9)             19             Large
Total                                                   15,454                  16,613        (1,159)           (7.0) % (d)                   $2,562                  $2,544            $18            0.7  %


(a)Revenues from electric sales are subject to a revenue decoupling mechanism,
as a result of which delivery revenues generally are not affected by changes in
delivery volumes from levels assumed when rates were approved.
(b)"Residential/Religious" generally includes single-family dwellings,
individual apartments in multi-family dwellings, religious organizations and
certain other not-for-profit organizations.
(c)Other electric operating revenues generally reflect changes in the revenue
decoupling mechanism current asset or regulatory liability and changes in
regulatory assets and liabilities in accordance with other provisions of the
company's rate plans.
(d)After adjusting for variations, primarily weather and billing days, electric
delivery volumes in CECONY's service area decreased 8.7 percent in the three
months ended September 30, 2020 compared with the 2019 period. See "Coronavirus
Disease 2019 (COVID-19) Impacts," above.

Operating revenues increased $18 million in the three months ended September 30, 2020 compared with the 2019 period primarily due to higher purchased power expenses ($25 million), offset in part by lower fuel expenses ($9 million).

--------------------------------------------------------------------------------

Purchased power expenses increased $25 million in the three months ended September 30, 2020 compared with the 2019 period due to higher unit costs ($40 million), offset in part by lower purchased volumes ($15 million).



Fuel expenses decreased $9 million in the three months ended September 30, 2020
compared with the 2019 period due to lower unit costs ($6 million) and purchased
volumes from the company's electric generating facilities ($3 million).

Other operations and maintenance expenses decreased $96 million in the three
months ended September 30, 2020 compared with the 2019 period primarily due to
lower costs for pension and other postretirement benefits ($43 million), lower
surcharges for assessments and fees that are collected in revenues from
customers ($34 million) and the deferral in September 2020, under the
legislative, regulatory and related actions provision of the company's electric
rate plan, of the previously recorded increases to the allowance for
uncollectible accounts associated with the COVID-19 pandemic ($6 million
after-tax), offset in part by estimated food and medicine spoilage claims
related to outages caused by Tropical Storm Isaias ($5 million).

Depreciation and amortization increased $39 million in the three months ended September 30, 2020 compared with the 2019 period primarily due to higher electric utility plant balances and higher depreciation rates.



Taxes, other than income taxes increased $49 million in the three months ended
September 30, 2020 compared with the 2019 period primarily due to higher
property taxes ($36 million), lower deferral of under-collected property taxes
($6 million), absence in 2020 of a reduction in the sales and use tax reserve
upon conclusion of the audit assessment ($5 million) and higher state and local
taxes ($3 million), offset in part by lower payroll taxes ($1 million) that
includes the Employee Retention Tax Credit created under the CARES Act. See
"Coronavirus Disease 2019 (COVID-19) Impacts - Impact of CARES Act on Accounting
for Income Taxes," above.

Gas

CECONY's results of gas operations for the three months ended September 30, 2020 compared with the 2019 period were as follows:


                                          For the Three Months Ended
(Millions of Dollars)                September 30, 2020   September 30, 2019   Variation
Operating revenues                                 $259                 $275       $(16)
Gas purchased for resale                             38                   52        (14)
Other operations and maintenance                     87                  102        (15)
Depreciation and amortization                        74                   58          16
Taxes, other than income taxes                       94                   87           7
Gas operating income                              $(34)                $(24)       $(10)

CECONY's gas sales and deliveries, excluding off-system sales, for the three months ended September 30, 2020 compared with the 2019 period were:


                                                         Thousands of Dt Delivered                                                            Revenues in Millions (a)
                                        For the Three Months Ended                                                          For the Three Months Ended
                                                                                                     Percent                                                                             Percent
Description                       September 30, 2020     September 30, 2019      Variation         Variation          September 30, 2020     September 30, 2019      Variation         Variation
Residential                                 4,314             4,032               282                 7.0  %                        $117                   $103            $14           13.6  %
General                                     3,504             4,097              (593)              (14.5)                            35                     45           (10)          (22.2)
Firm transportation                         8,668             9,071              (403)               (4.4)                            70                     71            (1)           (1.4)
Total firm sales and
transportation                             16,486            17,200              (714)               (4.2)   (b)                     222                    219         3                 1.4
Interruptible sales (c)                     1,882             1,974               (92)               (4.7)                             4                      6            (2)          (33.3)
NYPA                                       13,701            12,329             1,372                11.1                              1                      1         -                      -
Generation plants                          19,658            19,558               100                 0.5                              7                      7         -                      -
Other                                       4,457             4,604              (147)               (3.2)                             6                      6         -                      -
Other operating revenues (d)                    -                 -                 -                      -                          19                     36           (17)          (47.2)
Total                                      56,184            55,665               519                 0.9  %                        $259                   $275          $(16)           (5.8) %



                                                                              63

--------------------------------------------------------------------------------



(a)Revenues from gas sales are subject to a weather normalization clause and a
revenue decoupling mechanism, as a result of which delivery revenues are
generally not affected by changes in delivery volumes from levels assumed when
rates were approved.
(b)After adjusting for variations, primarily billing days, firm gas sales and
transportation volumes in the company's service area decreased 1.4 percent in
the three months ended September 30, 2020 compared with the 2019 period. See
"Coronavirus Disease 2019 (COVID-19) Impacts," above.
(c)Includes 676 thousand and 1,064 thousand of Dt for the 2020 and 2019 periods,
respectively, which are also reflected in firm transportation and other.
(d)Other gas operating revenues generally reflect changes in the revenue
decoupling mechanism and weather normalization clause current asset or
regulatory liability and changes in regulatory assets and liabilities in
accordance with other provisions of the company's rate plans.

Operating revenues decreased $16 million in the three months ended September 30, 2020 compared with the 2019 period primarily due to lower gas purchased for resale expense.

Gas purchased for resale decreased $14 million in the three months ended September 30, 2020 compared with the 2019 period due to lower unit costs ($10 million) and purchased volumes ($4 million).



Other operations and maintenance expenses decreased $15 million in the three
months ended September 30, 2020 compared with the 2019 period primarily due to
lower costs for pension and other postretirement benefits ($7 million), lower
municipal infrastructure support costs ($4 million), the deferral in September
2020, under the legislative, regulatory and related actions provision of the
company's gas rate plan, of the previously recorded increases to the allowance
for uncollectible accounts associated with the COVID-19 pandemic ($2 million
after-tax) and lower reserve for injuries and damages ($1 million).

Depreciation and amortization increased $16 million in the three months ended
September 30, 2020 compared with the 2019 period primarily due to higher gas
utility plant balances and higher depreciation rates.

Taxes, other than income taxes increased $7 million in the three months ended
September 30, 2020 compared with the 2019 period primarily due to higher
property taxes ($12 million), absence in 2020 of a reduction in the sales and
use tax reserve upon conclusion of the audit assessment ($1 million) and higher
state and local taxes ($1 million), offset in part by higher deferral of
under-collected property taxes ($7 million).

Steam

CECONY's results of steam operations for the three months ended September 30, 2020 compared with the 2019 period were as follows:


                                          For the Three Months Ended
(Millions of Dollars)                September 30, 2020   September 30, 2019   Variation
Operating revenues                                  $51                  $58        $(7)
Purchased power                                       4                    5         (1)
Fuel                                                  6                    4           2
Other operations and maintenance                     41                   45         (4)
Depreciation and amortization                        22                   22         -
Taxes, other than income taxes                       35                   38         (3)
Steam operating income                            $(57)                $(56)        $(1)

CECONY's steam sales and deliveries for the three months ended September 30, 2020 compared with the 2019 period were:


                                                    Millions of Pounds Delivered                                                           Revenues in Millions
                                     For the Three Months Ended                                                         For the Three Months Ended
                                                                                                 Percent                                                                            Percent
Description                    September 30, 2020     September 30, 2019

Variation Variation September 30, 2020 September 30, 2019 Variation Variation General

                                      7                 6                 1               16.7  %                          $1                     $2           $(1)         (50.0) %
Apartment house                            617               722              (105)             (14.5)                            12                     13            (1)          (7.7)
Annual power                             2,023             2,443              (420)             (17.2)                            33                     36            (3)          (8.3)
Other operating revenues (a)                 -                 -                 -                     -                           5                      7            (2)         (28.6)
Total                                    2,647             3,171              (524)             (16.5) % (b)                     $51                    $58           $(7)         (12.1) %

(a)Other steam operating revenues generally reflect changes in regulatory assets and liabilities in accordance with the company's rate plan.

--------------------------------------------------------------------------------



(b)After adjusting for variations, primarily weather and billing days, steam
sales and deliveries decreased 17.9 percent in the three months ended
September 30, 2020 compared with the 2019 period. See "Coronavirus Disease 2019
(COVID-19) Impacts," above.

Operating revenues decreased $7 million in the three months ended September 30,
2020 compared with the 2019 period primarily due to lower revenues from the
steam rate plan due to lower usage by customers ($4 million), certain rate plan
reconciliations ($4 million) and lower purchased power expenses ($1 million),
offset in part by higher fuel expenses ($2 million).

Purchased power decreased $1 million in the three months ended September 30,
2020 compared with the 2019 period due to lower purchased volumes ($2 million),
offset in part by higher unit costs ($1 million).

Fuel expenses increased $2 million in the three months ended September 30, 2020 compared with the 2019 period due to higher unit costs.



Other operations and maintenance expenses decreased $4 million in the three
months ended September 30, 2020 compared with the 2019 period primarily due to
lower municipal infrastructure support costs ($3 million) and lower costs for
pension and other postretirement benefits ($1 million).

Taxes, other than income taxes decreased $3 million in the three months ended September 30, 2020 compared with the 2019 period primarily due to higher deferral of under-collected property taxes ($5 million), offset in part by higher property taxes ($2 million).



Other Income (Deductions)
Other income (deductions) decreased $29 million in the three months ended
September 30, 2020 compared with the 2019 period primarily due to higher costs
associated with components of pension and other postretirement benefits other
than service cost due to a decrease in the discount rate.

Income Tax Expense
Income taxes decreased $22 million in the three months ended September 30, 2020
compared with the 2019 period primarily due to lower income before income tax
expense ($7 million) and an increase in the amortization of excess deferred
federal income taxes due to CECONY's electric and gas rate plans that went into
effect in January 2020 ($25 million), offset in part by the absence of the
amortization of excess deferred state income taxes in 2020 ($8 million) and
lower flow-through tax benefits in 2020 for plant related items ($3 million).

O&R
                                          For the Three Months Ended                                For the Three Months Ended
                                              September 30, 2020                                        September 30, 2019
                                                                                                                                                                 2020-2019
(Millions of Dollars)                          Electric                  Gas      2020 Total             Electric                  Gas      2019 Total           Variation
Operating revenues                                 $208                  $30            $238                 $210                  $31            $241                $(3)
Purchased power                                      56             -                     56                   61             -                     61                 (5)
Gas purchased for resale                       -                           9               9             -                          10              10                 (1)
Other operations and maintenance                     62                   17              79                   63                   18              81                 (2)
Depreciation and amortization                        17                    6              23                   16                    6              22                   1
Taxes, other than income taxes                       15                    7              22                   14                    7              21                   1
Operating income                                    $58                 $(9)             $49                  $56                $(10)             $46                  $3




Electric

O&R's results of electric operations for the three months ended September 30, 2020 compared with the 2019 period were as follows:

--------------------------------------------------------------------------------



                                          For the Three Months Ended
(Millions of Dollars)                September 30, 2020   September 30, 2019   Variation
Operating revenues                                 $208                 $210        $(2)
Purchased power                                      56                   61         (5)
Other operations and maintenance                     62                   63         (1)
Depreciation and amortization                        17                   16           1
Taxes, other than income taxes                       15                   14           1
Electric operating income                           $58                  $56          $2

O&R's electric sales and deliveries for the three months ended September 30, 2020 compared with the 2019 period were:


                                                                   Millions of kWh Delivered                                                              Revenues in Millions (a)
                                                  For the Three Months Ended                                                            For the Three Months Ended
                                                                                                                Percent                                                                               Percent
Description                                 September 30, 2020      September 30, 2019      Variation         Variation           September 30, 2020      September 30, 2019      Variation         Variation
Residential/Religious (b)                               647                586                61                10.4  %                         $110                    $106             $4            3.8  %
Commercial/Industrial                                   230                235                (5)               (2.1)                             35                      36            (1)           (2.8)
Retail choice customers                                 741                796               (55)               (6.9)                             62                      62         -                      -
Public authorities                                       32                 30                 2                 6.7                               3                       2              1           50.0
Other operating revenues (c)                              -                  -                 -                      -                          (2)                       4            (6)             Large
Total                                                 1,650              1,647                 3                 0.2  % (d)                     $208                    $210           $(2)           (1.0) %


(a)O&R's New York electric delivery revenues are subject to a revenue decoupling
mechanism, as a result of which delivery revenues are generally not affected by
changes in delivery volumes from levels assumed when rates were approved. O&R's
electric sales in New Jersey are not subject to a decoupling mechanism, and as a
result, changes in such volumes do impact revenues.
(b)"Residential/Religious" generally includes single-family dwellings,
individual apartments in multi-family dwellings, religious organizations and
certain other not-for-profit organizations.
(c)Other electric operating revenues generally reflect changes in regulatory
assets and liabilities in accordance with the company's electric rate plan.
(d)After adjusting for weather and other variations, electric delivery volumes
in O&R's service area decreased 1.8 percent in the three months ended
September 30, 2020 compared with the 2019 period. See "Coronavirus Disease 2019
(COVID-19) Impacts," above.

Operating revenues decreased $2 million in the three months ended September 30, 2020 compared with the 2019 period primarily due to lower purchased power expenses ($5 million), offset in part by higher revenues from the New York electric rate plan ($2 million).

Purchased power expenses decreased $5 million in the three months ended September 30, 2020 compared with the 2019 period due to lower unit costs ($9 million), offset in part by higher purchased volumes ($4 million).



Other operations and maintenance expenses decreased $1 million in the three
months ended September 30, 2020 compared with the 2019 period primarily due to
the deferral in September 2020, under the legislative, regulatory and related
actions provision of the company's New York electric rate plan, of the
previously recorded increases to the allowance for uncollectible accounts
associated with the COVID-19 pandemic ($1 million after tax) and lower cost for
pension and other postretirement benefits ($1 million), offset in part by
estimated food and medicine spoilage claims related to outages caused by
Tropical Storm Isaias ($2 million).

Depreciation and amortization increased $1 million in the three months ended September 30, 2020 compared with the 2019 period primarily due to higher electric utility plant balances.

Taxes, other than income taxes increased $1 million in the three months ended September 30, 2020 compared with the 2019 period primarily due to higher property taxes.

Gas

O&R's results of gas operations for the three months ended September 30, 2020 compared with the 2019 period were as follows:

--------------------------------------------------------------------------------



                                          For the Three Months Ended
(Millions of Dollars)                September 30, 2020   September 30, 2019   Variation
Operating revenues                                  $30                  $31        $(1)
Gas purchased for resale                              9                   10         (1)
Other operations and maintenance                     17                   18         (1)
Depreciation and amortization                         6                    6         -
Taxes, other than income taxes                        7                    7         -
Gas operating income                               $(9)                $(10)        $1

O&R's gas sales and deliveries, excluding off-system sales, for the three months ended September 30, 2020 compared with the 2019 period were:


                                                        Thousands of Dt Delivered                                                          Revenues in Millions (a)
                                        For the Three Months Ended                                                        For the Three Months Ended
                                                                                                   Percent                                                                           Percent
Description                       September 30, 2020     September 30, 2019     Variation        Variation          September 30, 2020     September 30, 2019     Variation        Variation
Residential                                   724               621              103               16.6  %                         $13                    $11            $2          18.2  %
General                                       218               161               57               35.4                              2                      1             1            Large
Firm transportation                           804               851              (47)              (5.5)                             7                      6             1          16.7
Total firm sales and
transportation                              1,746             1,633              113                6.9    (b)                      22                     18             4          22.2
Interruptible sales                           787               798              (11)              (1.4)                             1                      1        -                     -
Generation plants                              21                 6               15                 Large                        -                 -                -                     -
Other                                          30                74              (44)             (59.5)                          -                         1       (1)     Large
Other gas revenues                              -                 -                -                     -                           7                     11           (4)         (36.4)
Total                                       2,584             2,511               73                2.9  %                         $30                    $31          $(1)          (3.2) %


(a)Revenues from New York gas sales are subject to a weather normalization
clause and a revenue decoupling mechanism as a result of which delivery revenues
are generally not affected by changes in delivery volumes from levels assumed
when rates were approved.
(b)After adjusting for weather and other variations, total firm sales and
transportation volumes decreased 1.5 percent in the three months ended
September 30, 2020 compared with the 2019 period. See "Coronavirus Disease 2019
(COVID-19) Impacts," above.

Operating revenues decreased $1 million in the three months ended September 30, 2020 compared with the 2019 period primarily due to lower gas purchased for resale.

Gas purchased for resale decreased $1 million in the three months ended September 30, 2020 compared with the 2019 period due to lower unit costs ($2 million), offset in part by higher purchased volumes ($1 million).



Other operations and maintenance expenses decreased $1 million in the three
months ended September 30, 2020 compared with the 2019 period primarily due to
lower pension costs.
Clean Energy Businesses
The Clean Energy Businesses' results of operations for the three months ended
September 30, 2020 compared with the 2019 period were as follows:
                                          For the Three Months Ended
(Millions of Dollars)                September 30, 2020   September 30, 2019   Variation
Operating revenues                                 $222                 $247       $(25)

Gas purchased for resale                              8                   36        (28)
Other operations and maintenance                     59                   53           6
Depreciation and amortization                        58                   53           5
Taxes, other than income taxes                        5                    5         -

Operating income                                    $92                 $100        $(8)



Operating revenues decreased $25 million in the three months ended September 30,
2020 compared with the 2019 period primarily due to lower wholesale revenues
($21 million) and net mark-to-market values ($5 million), offset in part by
higher energy services revenues ($1 million).

--------------------------------------------------------------------------------

Gas purchased for resale decreased $28 million in the three months ended September 30, 2020 compared with the 2019 period due to lower purchased volumes.

Other operations and maintenance expenses increased $6 million in the three months ended September 30, 2020 compared with the 2019 period primarily due to the timing of maintenance costs.



Depreciation and amortization increased $5 million in the three months ended
September 30, 2020 compared with the 2019 period primarily due to an increase in
renewable electric production projects in operation during 2020 and the final
purchase price allocation of the acquisition from Sempra in 2019.

Net Interest Expense
Net interest expense decreased $39 million in the three months ended
September 30, 2020 compared with the 2019 period due to lower unrealized losses
on interest rate swaps in the 2020 period.

Income Tax Expense
Income taxes increased $20 million in the three months ended September 30, 2020
compared with the 2019 period primarily due to higher income before income tax
expense ($7 million), the absence of the adjustment for prior period federal
income tax returns primarily due to higher research and development credits in
2019 ($13 million) and lower income attributable to non-controlling interest ($5
million), offset in part by a lower increase in the reserve for uncertain tax
positions in 2020, as compared with the 2019 period ($7 million).

Income Attributable to Non-Controlling Interest
Income attributable to non-controlling interest increased $21 million in the
three months ended September 30, 2020 compared with the 2019 period primarily
due to lower losses attributable in the 2020 period to a tax equity investor in
renewable electric production projects accounted for under the HLBV method of
accounting. See Note O to the Third Quarter Financial Statements.

Other


Income Tax Expense
Income taxes increased $4 million in the three months ended September 30, 2020
compared with the 2019 period primarily due to lower consolidated state income
tax benefits.



68

--------------------------------------------------------------------------------

The Companies' results of operations for the nine months ended September 30, 2020 and 2019 were as follows:


                                                                                                           Con Edison
                                         CECONY               O&R           Clean Energy Businesses       Transmission          Other (a)         Con Edison (b)
(Millions of Dollars)                   2020      2019     2020     2019           2020           2019      2020      2019       2020     2019        2020      2019
Operating revenues                    $8,072    $8,248     $647     $678           $566           $696        $3        $3       $(2)     $(2)      $9,286    $9,623
Purchased power                        1,065     1,058      127      146        -              -           -         -          -          (1)       1,192     1,203
Fuel                                     124       163     -        -           -              -           -         -          -         -            124       163
Gas purchased for resale                 298       445       43       68             24            159     -         -            (1)      (1)         364       671
Other operations and maintenance       1,714     2,022      232      225            165            168         8         7        (3)     -          2,116     2,422
Depreciation and amortization          1,187     1,020       67       63            173            169         1         1      -         -          1,428     1,253
Taxes, other than income taxes         1,830     1,715       64       63             16             17     -         -              5        5       1,915     1,800

Operating income                       1,854     1,825      114      113            188            183       (6)       (5)        (3)      (5)       2,147     2,111
Other income less deductions           (138)      (31)     (11)      (8)              4              3        78        76        (5)      (9)        (72)        31
Net interest expense                     554       545       30       30            183            170        14        18         16        9         797       772
Income before income tax expense       1,162     1,249       73       75              9             16        58        53       (24)     (23)       1,278     1,370
Income tax expense                       199       271       16       15           (36)           (44)        16        15       (12)     (14)         183       243
Net income                              $963      $978      $57      $60            $45            $60       $42       $38      $(12)     $(9)      $1,095    $1,127
Income attributable to
non-controlling interest                -         -        -        -                37             79     -         -          -         -             37        79
Net income for common stock             $963      $978      $57      $60             $8          $(19)       $42       $38      $(12)     $(9)      $1,058    $1,048

(a)Includes parent company and consolidation adjustments. (b)Represents the consolidated results of operations of Con Edison and its businesses.

--------------------------------------------------------------------------------



CECONY
                                      For the Nine Months Ended                                       For the Nine Months Ended
                                          September 30, 2020                                              September 30, 2019
                                                                                                                                                                       2020-2019
(Millions of Dollars)              Electric            Gas          Steam


      2020 Total       Electric            Gas          Steam          2019 Total          Variation
Operating revenues                   $6,178         $1,509           $385             $8,072         $6,174         $1,605           $469              $8,248             $(176)
Purchased power                       1,046         -                  19              1,065          1,033         -                  25               1,058                  7
Fuel                                     56         -                  68                124             74         -                  89                 163               (39)
Gas purchased for resale             -                 298         -                     298         -                 445         -                      445              (147)
Other operations and
maintenance                           1,322            269            123              1,714          1,582            306            134               2,022              (308)
Depreciation and
amortization                            904            216             67              1,187            785            168             67               1,020                167
Taxes, other than income
taxes                                 1,437            286            107              1,830          1,326            272            117               1,715                115
Operating income                     $1,413           $440             $1             $1,854         $1,374           $414            $37              $1,825                $29

Electric

CECONY's results of electric operations for the nine months ended September 30, 2020 compared with the 2019 period were as follows:



                                                                      For the Nine Months Ended
                                                                                          September 30,
(Millions of Dollars)                                              September 30, 2020              2019             Variation
Operating revenues                                                             $6,178            $6,174                    $4
Purchased power                                                                 1,046             1,033                    13
Fuel                                                                               56                74                  (18)
Other operations and maintenance                                                1,322             1,582                 (260)
Depreciation and amortization                                                     904               785                   119
Taxes, other than income taxes                                                  1,437             1,326                   111
Electric operating income                                                      $1,413            $1,374                   $39

CECONY's electric sales and deliveries for the nine months ended September 30, 2020 compared with the 2019 period were:


                                                                     Millions of kWh Delivered                                                              Revenues in Millions (a)
                                                    For the Nine Months Ended                                                              For the Nine Months Ended
                                                                                                             Percent                                                                               Percent
Description                                  September 30, 2020      September 30, 2019    Variation        Variation               September

30, 2020 September 30, 2019 Variation Variation Residential/Religious (b)

                              8,638              8,203                435                 5.3  %                       $2,220                  $2,060           $160            7.8  %
Commercial/Industrial                                  7,145              7,574               (429)               (5.7)                          1,407                   1,405              2            0.1
Retail choice customers                               17,014             18,968             (1,954)              (10.3)                          1,838                   1,879           (41)           (2.2)
NYPA, Municipal Agency and other sales                 6,972              7,477               (505)               (6.8)                            506                     511            (5)           (1.0)
Other operating revenues (c)                               -                  -                  -                      -                          207                     319          (112)          (35.1)
Total                                                 39,769             42,222             (2,453)               (5.8) % (d)                   $6,178                  $6,174             $4            0.1  %


(a)Revenues from electric sales are subject to a revenue decoupling mechanism,
as a result of which delivery revenues generally are not affected by changes in
delivery volumes from levels assumed when rates were approved.
(b)"Residential/Religious" generally includes single-family dwellings,
individual apartments in multi-family dwellings, religious organizations and
certain other not-for-profit organizations.
(c)Other electric operating revenues generally reflect changes in the revenue
decoupling mechanism current asset or regulatory liability and changes in
regulatory assets and liabilities in accordance with other provisions of the
company's rate plans.
(d)After adjusting for variations, primarily weather and billing days, electric
delivery volumes in CECONY's service area decreased 5.6 percent in the nine
months ended September 30, 2020 compared with the 2019 period. See "Coronavirus
Disease 2019 (COVID-19) Impacts," above.

Operating revenues increased $4 million in the nine months ended September 30,
2020 compared with the 2019 period primarily due to certain rate plan
reconciliations ($15 million) and higher purchased power expenses ($13 million),
offset in part by lower fuel expenses ($18 million).

--------------------------------------------------------------------------------

Purchased power expenses increased $13 million in the nine months ended September 30, 2020 compared with the 2019 period due to higher unit costs ($105 million), offset in part by lower purchased volumes ($92 million).



Fuel expenses decreased $18 million in the nine months ended September 30, 2020
compared with the 2019 period due to lower unit costs ($22 million), offset in
part by higher purchased volumes from the company's electric generating
facilities ($4 million).

Other operations and maintenance expenses decreased $260 million in the nine
months ended September 30, 2020 compared with the 2019 period primarily due to
lower costs for pension and other postretirement benefits ($151 million), lower
surcharges for assessments and fees that are collected in revenues from
customers ($79 million), lower stock-based compensation ($13 million) and lower
healthcare costs ($10 million), offset in part by incremental costs associated
with the COVID-19 pandemic ($13 million) and estimated food and medicine
spoilage claims related to outages caused by Tropical Storm Isaias ($5 million).

Depreciation and amortization increased $119 million in the nine months ended September 30, 2020 compared with the 2019 period primarily due to higher electric utility plant balances and higher depreciation rates.



Taxes, other than income taxes increased $111 million in the nine months ended
September 30, 2020 compared with the 2019 period primarily due to higher
property taxes ($89 million), lower deferral of under-collected property taxes
($13 million), higher state and local taxes ($8 million) and absence in 2020 of
a reduction in the sales and use tax reserve upon conclusion of the audit
assessment ($5 million), offset in part by lower payroll taxes ($5 million) that
includes the Employee Retention Tax Credit created under the CARES Act. See
"Coronavirus Disease 2019 (COVID-19) Impacts - Impact of CARES Act on Accounting
for Income Taxes," above.

Gas

CECONY's results of gas operations for the nine months ended September 30, 2020 compared with the 2019 period were as follows:


                                                                      For the Nine Months Ended
                                                                                          September 30,
(Millions of Dollars)                                              September 30, 2020              2019             Variation
Operating revenues                                                             $1,509            $1,605                 $(96)
Gas purchased for resale                                                          298               445                 (147)
Other operations and maintenance                                                  269               306                  (37)
Depreciation and amortization                                                     216               168                    48
Taxes, other than income taxes                                                    286               272                    14
Gas operating income                                                             $440              $414                   $26




                                                                              71

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CECONY's gas sales and deliveries, excluding off-system sales, for the nine months ended September 30, 2020 compared with the 2019 period were:


                                                            Thousands of Dt Delivered                                                               Revenues in Millions (a)
                                           For the Nine Months Ended                                                               For the Nine Months Ended
                                                                                                     Percent                                                                               Percent
Description                         September 30, 2020      September 30, 2019    Variation         Variation               September 30, 2020      September 30, 2019   Variation        Variation
Residential                                  37,161             41,035              (3,874)               (9.4) %                         $691                    $724          $(33)           (4.6) %
General                                      22,551             25,018              (2,467)               (9.9)                            237                     299           (62)          (20.7)
Firm transportation                          58,697             60,590              (1,893)               (3.1)                            487                     444             43            9.7
Total firm sales and
transportation                              118,409            126,643              (8,234)               (6.5)   (b)                    1,415                   1,467           (52)           (3.5)
Interruptible sales (c)                       6,869              7,375                (506)               (6.9)                             23                      34           (11)          (32.4)
NYPA                                         29,403             30,296                (893)               (2.9)                              2                       2         -                      -
Generation plants                            40,073             41,545              (1,472)               (3.5)                             17                      18            (1)           (5.6)
Other                                        16,481             16,058                 423                 2.6                              27                      24              3           12.5
Other operating revenues (d)                      -                  -                   -                      -                           25                      60           (35)          (58.3)
Total                                       211,235            221,917             (10,682)               (4.8) %                       $1,509                  $1,605          $(96)           (6.0) %


(a)Revenues from gas sales are subject to a weather normalization clause and a
revenue decoupling mechanism as a result of which delivery revenues are
generally not affected by changes in delivery volumes from levels assumed when
rates were approved.
(b)After adjusting for variations, primarily billing days, firm gas sales and
transportation volumes in the company's service area decreased 0.5 percent in
the nine months ended September 30, 2020 compared with the 2019 period. See
"Coronavirus Disease 2019 (COVID-19) Impacts," above.
(c)Includes 2,961 thousand and 3,797 thousand of Dt for the 2020 and 2019
periods, respectively, which are also reflected in firm transportation and
other.
(d)Other gas operating revenues generally reflect changes in the revenue
decoupling mechanism and weather normalization clause current asset or
regulatory liability and changes in regulatory assets and liabilities in
accordance with other provisions of the company's rate plans.

Operating revenues decreased $96 million in the nine months ended September 30,
2020 compared with the 2019 period primarily due to lower gas purchased for
resale expense ($147 million) and certain rate plan reconciliations ($19
million), offset in part by higher gas net base revenues due to gas base rates
increase in January 2020 under the company's gas rate plan ($69 million).

Gas purchased for resale decreased $147 million in the nine months ended September 30, 2020 compared with the 2019 period due to lower unit costs ($98 million) and purchased volumes ($49 million).



Other operations and maintenance expenses decreased $37 million in the nine
months ended September 30, 2020 compared with the 2019 period primarily due to
lower costs for pension and other postretirement benefits ($24 million), lower
stock-based compensation ($3 million), lower reserve for injuries and damages
($3 million) and lower healthcare costs ($2 million).

Depreciation and amortization increased $48 million in the nine months ended
September 30, 2020 compared with the 2019 period primarily due to higher gas
utility plant balances and higher depreciation rates.

Taxes, other than income taxes increased $14 million in the nine months ended
September 30, 2020 compared with the 2019 period primarily due to higher
property taxes ($29 million), state and local taxes ($1 million) and absence in
2020 of a reduction in the sales and use tax reserve upon conclusion of the
audit assessment ($1 million), offset in part by higher deferral of
under-collected property taxes ($17 million) and lower payroll taxes ($1
million) that includes the Employee Retention Tax Credit created under the CARES
Act. See "Coronavirus Disease 2019 (COVID-19) Impacts - Impact of CARES Act on
Accounting for Income Taxes," above.

--------------------------------------------------------------------------------

Steam

CECONY's results of steam operations for the nine months ended September 30, 2020 compared with the 2019 period were as follows:


                                                                      For the Nine Months Ended
                                                                                          September 30,
(Millions of Dollars)                                              September 30, 2020              2019             Variation
Operating revenues                                                               $385              $469                 $(84)
Purchased power                                                                    19                25                   (6)
Fuel                                                                               68                89                  (21)
Other operations and maintenance                                                  123               134                  (11)
Depreciation and amortization                                                      67                67                  -
Taxes, other than income taxes                                                    107               117                  (10)
Steam operating income                                                             $1               $37                 $(36)

CECONY's steam sales and deliveries for the nine months ended September 30, 2020 compared with the 2019 period were:


                                                     Millions of Pounds Delivered                                                             Revenues in Millions
                                      For the Nine Months Ended                                                            For the Nine Months Ended
                                                                                              Percent                                                                             Percent
Description                    September 30, 2020     September 30, 2019    Variation        Variation              September 30, 2020     September


30, 2019   Variation        Variation
General                                    334               394                (60)              (15.2) %                         $17                    $20           $(3)          (15.0) %
Apartment house                          3,830             4,331               (501)              (11.6)                           103                    120           (17)          (14.2)
Annual power                             8,462            10,383             (1,921)              (18.5)                           245                    304           (59)          (19.4)
Other operating revenues (a)                 -                 -                  -                      -                          20                     25            (5)          (20.0)
Total                                   12,626            15,108             (2,482)              (16.4) % (b)                    $385                   $469          $(84)          (17.9) %


(a)Other steam operating revenues generally reflect changes in regulatory assets
and liabilities in accordance with the company's rate plan.
(b)After adjusting for variations, primarily weather and billing days, steam
sales and deliveries decreased 8.3 percent in the nine months ended
September 30, 2020 compared with the 2019 period. See "Coronavirus Disease 2019
(COVID-19) Impacts," above.

Operating revenues decreased $84 million in the nine months ended September 30,
2020 compared with the 2019 period primarily due to the impact of warmer winter
weather ($28 million), lower fuel expenses ($21 million), lower revenues from
the steam rate plan due to lower usage by customers ($19 million), certain rate
plan reconciliations ($10 million) and lower purchased power expenses ($6
million).

Purchased power expenses decreased $6 million in the nine months ended September 30, 2020 compared with the 2019 period due to lower unit costs ($5 million) and purchased volumes ($1 million).



Fuel expenses decreased $21 million in the nine months ended September 30, 2020
compared with the 2019 period due to lower purchased volumes from the company's
steam generating facilities ($13 million) and unit costs ($8 million).

Other operations and maintenance expenses decreased $11 million in the nine
months ended September 30, 2020 compared with the 2019 period primarily due to
lower costs for pension and other postretirement benefits ($6 million) and lower
municipal infrastructure support costs ($5 million).

Taxes, other than income taxes decreased $10 million in the nine months ended
September 30, 2020 compared with the 2019 period primarily due to higher
deferral of under-collected property taxes ($17 million) and lower state and
local taxes ($2 million), offset in part by higher property taxes ($8 million).

Other Income (Deductions)
Other income (deductions) decreased $107 million in the nine months ended
September 30, 2020 compared with the 2019 period primarily due to higher costs
associated with components of pension and other postretirement benefits other
than service cost ($93 million) and the absence of the company's share of a gain
on sale of property in 2019 ($5 million).

--------------------------------------------------------------------------------



Net Interest Expense
Net interest expense increased $9 million in the nine months ended September 30,
2020 compared with the 2019 period primarily due to higher interest on long-term
debt ($35 million), offset in part by a decrease in interest accrued on the TCJA
related regulatory liability ($10 million), lower interest expense for
short-term debt ($9 million) and lower interest accrued on the system benefit
charge liability ($6 million).

Income Tax Expense
Income taxes decreased $72 million in the nine months ended September 30, 2020
compared with the 2019 period primarily due to lower income before income tax
expense ($18 million), an increase in the amortization of excess deferred
federal income taxes due to CECONY's electric and gas rate plans that went into
effect in January 2020 ($74 million) and lower state income taxes ($7 million),
offset in part by the absence of the amortization of excess deferred state
income taxes ($18 million), lower research and development credits in 2020 ($4
million) and lower flow-through tax benefits in 2020 for plant-related items ($3
million).

O&R
                                         For the Nine Months Ended                             For the Nine Months Ended
                                            September 30, 2020                                    September 30, 2019
                                                                                                                                                         2020-2019
(Millions of Dollars)                          Electric              Gas      2020 Total             Electric              Gas      2019 Total           Variation
Operating revenues                                 $483             $164            $647                 $493             $185            $678               $(31)
Purchased power                                     127             -                127                  146             -                146                (19)
Gas purchased for resale                       -                      43              43             -                      68              68

(25)


Other operations and maintenance                    181               51             232                  173               52             225


Depreciation and amortization                        48               19              67                   46               17              63


Taxes, other than income taxes                       41               23              64                   40               23              63                   1
Operating income                                    $86              $28            $114                  $88              $25            $113                  $1





Electric

O&R's results of electric operations for the nine months ended September 30, 2020 compared with the 2019 period were as follows:


                                                                      For the Nine Months Ended
                                                                                          September 30,
(Millions of Dollars)                                              September 30, 2020              2019             Variation
Operating revenues                                                               $483              $493                 $(10)
Purchased power                                                                   127               146                  (19)
Other operations and maintenance                                                  181               173                     8
Depreciation and amortization                                                      48                46                     2
Taxes, other than income taxes                                                     41                40                     1
Electric operating income                                                         $86               $88                  $(2)




74

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O&R's electric sales and deliveries for the nine months ended September 30, 2020 compared with the 2019 period were:


                                                                   Millions of kWh Delivered                                                              Revenues in Millions (a)
                                                   For the Nine Months Ended                                                             For the Nine Months Ended
                                                                                                           Percent                                                                               Percent
Description                                 September 30, 2020      September 30, 2019      Variation     Variation               September 30, 2020      September 30, 2019      Variation     Variation
Residential/Religious (b)                             1,414              1,339                75                 5.6  %                         $247                    $243        $4                 1.6  %
Commercial/Industrial                                   612                621                (9)               (1.4)                             88                      87              1            1.1
Retail choice customers                               1,995              2,194              (199)               (9.1)                            144                     147            (3)           (2.0)
Public authorities                                       82                 80                 2                 2.5                               6                       7            (1)          (14.3)
Other operating revenues (c)                              -                  -                 -                      -                          (2)                       9           (11)             Large
Total                                                 4,103              4,234              (131)               (3.1) % (d)                     $483                    $493          $(10)           (2.0) %


(a)O&R's New York electric delivery revenues are subject to a revenue decoupling
mechanism, as a result of which delivery revenues are generally not affected by
changes in delivery volumes from levels assumed when rates were approved. O&R's
electric sales in New Jersey are not subject to a decoupling mechanism, and as a
result, changes in such volumes do impact revenues.
(b)"Residential/Religious" generally includes single-family dwellings,
individual apartments in multi-family dwellings, religious organizations and
certain other not-for-profit organizations.
(c)Other electric operating revenues generally reflect changes in regulatory
assets and liabilities in accordance with the company's electric rate plan.
(d)After adjusting for weather and other variations, electric delivery volumes
in O&R's service area decreased 1.5 percent in the nine months ended
September 30, 2020 compared with the 2019 period. See "Coronavirus Disease 2019
(COVID-19) Impacts," above.

Operating revenues decreased $10 million in the nine months ended September 30, 2020 compared with the 2019 period primarily due to lower purchased power expenses ($19 million), offset in part by higher revenues from the New York electric rate plan ($13 million).

Purchased power expenses decreased $19 million in the nine months ended September 30, 2020 compared with the 2019 period due to lower unit costs ($20 million), offset in part by higher purchased volumes ($1 million).



Other operations and maintenance expenses increased $8 million in the nine
months ended September 30, 2020 compared with the 2019 period primarily due to
incremental costs associated with COVID-19 ($3 million), the amortization of
prior deferred storm costs ($2 million), estimated food and medicine spoilage
claims related to outages caused by Tropical Storm Isaias ($2 million) and
higher reserve for injuries and damages ($1 million).

Depreciation and amortization increased $2 million in the nine months ended September 30, 2020 compared with the 2019 period primarily due to higher electric utility plant balances.

Taxes, other than income taxes increased $1 million in the nine months ended September 30, 2020 compared with the 2019 period primarily due to higher property taxes.

Gas

O&R's results of gas operations for the nine months ended September 30, 2020 compared with the 2019 period were as follows:


                                                                      For the Nine Months Ended
                                                                                          September 30,
(Millions of Dollars)                                              September 30, 2020              2019             Variation
Operating revenues                                                               $164              $185                 $(21)
Gas purchased for resale                                                           43                68                  (25)
Other operations and maintenance                                                   51                52                 (1)
Depreciation and amortization                                                      19                17                     2
Taxes, other than income taxes                                                     23                23                  -
Gas operating income                                                              $28               $25                    $3




                                                                              75

--------------------------------------------------------------------------------

O&R's gas sales and deliveries, excluding off-system sales, for the nine months ended September 30, 2020 compared with the 2019 period were:


                                                          Thousands of Dt Delivered                                                            Revenues in Millions (a)
                                         For the Nine Months Ended                                                            For the Nine Months Ended
                                                                                                 Percent                                                                             Percent
Description                       September 30, 2020     September 30, 2019    Variation        Variation              September 30, 2020     September


30, 2019   Variation        Variation
Residential                                 6,484             6,875               (391)               (5.7) %                         $83                    $98          $(15)          (15.3) %
General                                     1,443             1,608               (165)              (10.3)                            14                     18            (4)          (22.2)
Firm transportation                         5,799             6,430               (631)               (9.8)                            45                     44              1            2.3
Total firm sales and
transportation                             13,726            14,913             (1,187)               (8.0)   (b)                     142                    160           (18)          (11.3)
Interruptible sales                         2,723             2,690                 33                 1.2                              4                      4         -                   -
Generation plants                              24                 6                 18                  Large                        -                 -                 -                   -
Other                                         529               637               (108)              (17.0)                             1                      1         -                   -
Other gas revenues                              -                 -                  -                      -                          17                     20            (3)            (15)
Total                                      17,002            18,246             (1,244)               (6.8) %                        $164                   $185          $(21)          (11.4) %


(a)Revenues from New York gas sales are subject to a weather normalization
clause and a revenue decoupling mechanism as a result of which delivery revenues
are generally not affected by changes in delivery volumes from levels assumed
when rates were approved.
(b)After adjusting for weather and other variations, total firm sales and
transportation volumes decreased 0.5 percent in the nine months ended
September 30, 2020 compared with 2019 period. See "Coronavirus Disease 2019
(COVID-19) Impacts," above.

Operating revenues decreased $21 million in the nine months ended September 30,
2020 compared with the 2019 period primarily due to a decrease in gas purchased
for resale ($25 million), offset in part by higher revenues from the New York
gas rate plan ($2 million).

Gas purchased for resale decreased $25 million in the nine months ended September 30, 2020 compared with the 2019 period due to lower unit costs ($19 million) and purchased volumes ($6 million).



Other operations and maintenance expenses decreased $1 million in the nine
months ended September 30, 2020 compared with the 2019 period primarily due to
lower pension costs ($4 million), offset in part by incremental costs associated
with the COVID-19 pandemic ($2 million) and higher gas program spending ($1
million).

Depreciation and amortization increased $2 million in the nine months ended September 30, 2020 compared with the 2019 period primarily due to higher gas utility plant balances.



Income Tax Expense
Income taxes increased $1 million in the nine months ended September 30, 2020
compared with the 2019 period primarily due to lower flow-through tax benefits
on plant-related items in 2020 as compared to 2019.

Clean Energy Businesses
The Clean Energy Businesses' results of operations for the nine months ended
September 30, 2020 compared with the 2019 period were as follows:
                                                                      For the Nine Months Ended
                                                                                          September 30,
(Millions of Dollars)                                              September 30, 2020              2019             Variation
Operating revenues                                                               $566              $696                $(130)

Gas purchased for resale                                                           24               159                 (135)
Other operations and maintenance                                                  165               168                   (3)
Depreciation and amortization                                                     173               169                     4
Taxes, other than income taxes                                                     16                17                   (1)

Operating income                                                                 $188              $183                    $5



Operating revenues decreased $130 million in the nine months ended September 30,
2020 compared with the 2019 period primarily due to lower wholesale revenues
($132 million) and lower energy services revenues ($16 million) and net
mark-to-market values ($3 million), offset in part by higher renewable electric
production revenues ($21 million).

--------------------------------------------------------------------------------

Gas purchased for resale decreased $135 million in the nine months ended September 30, 2020 compared with the 2019 period primarily due to lower purchased volumes.

Other operations and maintenance expenses decreased $3 million in the nine months ended September 30, 2020 compared with the 2019 period primarily due to lower energy services costs.

Depreciation and amortization increased $4 million in the nine months ended September 30, 2020 compared with the 2019 period primarily due to an increase in renewable electric production projects in operation during 2020.



Taxes, other than income taxes decreased $1 million in the nine months ended
September 30, 2020 compared with the 2019 period primarily due to the Employee
Retention Tax Credit created under the CARES Act. See "Coronavirus Disease 2019
(COVID-19) Impacts - Impact of CARES Act on Accounting for Income Taxes," above.

Net Interest Expense Net interest expense increased $13 million in the nine months ended September 30, 2020 compared with the 2019 period primarily due to higher unrealized losses on interest rate swaps in the 2020 period.



Income Tax Expense
Income taxes increased $8 million in the nine months ended September 30, 2020
compared with the 2019 period primarily due to lower income attributable to
non-controlling interest ($10 million), and the absence of the adjustment for
prior period federal income tax returns primarily due to higher research and
development credits in 2019 ($13 million), offset in part by a tax benefit due
to the change in the federal corporate income tax rate recognized for a loss
carryback from the 2018 tax year to the 2013 tax year as allowed under the CARES
Act signed into law during the first quarter of 2020 ($4 million), a decrease in
uncertain tax position ($7 million) and higher renewable energy credits ($2
million).

Income Attributable to Non-Controlling Interest
Income attributable to non-controlling interest increased $42 million in the
nine months ended September 30, 2020 compared with the 2019 period primarily due
to lower losses attributable in the 2020 period to a tax equity investor in
renewable electric production projects accounted for under the HLBV method of
accounting. See Note O to the Third Quarter Financial Statements.

Con Edison Transmission
Income Tax Expense
Income taxes increased $1 million in the nine months ended September 30, 2020
compared with the 2019 period primarily due to higher income before income tax
expense.

Other
Income Tax Expense
Income taxes increased $2 million in the nine months ended September 30, 2020
compared with the 2019 period primarily due to lower consolidated state income
tax benefits.

Liquidity and Capital Resources
The Companies' liquidity reflects cash flows from operating, investing and
financing activities, as shown on their respective consolidated statement of
cash flows and as discussed below.

--------------------------------------------------------------------------------



The Companies' cash, temporary cash investments and restricted cash resulting
from operating, investing and financing activities for the nine months ended
September 30, 2020 and 2019 are summarized as follows:
                                                                                    For the Nine Months Ended September 30,
                                                                                                                  Con Edison
                                  CECONY                     O&R              Clean Energy Businesses            Transmission               Other (a)             Con Edison (b)
(Millions of Dollars)            2020         2019        2020        2019           2020           2019             2020        2019        2020       2019          2020        2019
Operating activities             $959       $1,490         $82        $168           $810           $285             $(8)        $150      $(475)     $(133)        $1,368      $1,960
Investing activities          (2,412)      (2,437)       (150)       (163)          (438)          (142)               16       (143)       -              1       (2,984)     (2,884)
Financing activities              543          144          50        (20)          (440)           (79)              (8)         (9)         568        135           713         171
Net change for the
period                          (910)        (803)        (18)        (15)           (68)             64            -             (2)          93          3         (903)       (753)
Balance at beginning of
period                            933          818          32          52            251            126            -               2           1          8         1,217       1,006
Balance at end of period
(c)                               $23          $15         $14         $37           $183           $190           $-          $-             $94        $11          $314        $253


(a) Includes parent company and consolidation adjustments.
(b) Represents the consolidated results of operations of Con Edison and its
businesses.
(c) See "Reconciliation of Cash, Temporary Cash Investments and Restricted Cash"
in Note A to the Third Quarter Financial Statements.

--------------------------------------------------------------------------------



Cash Flows from Operating Activities
The Utilities' cash flows from operating activities primarily reflect their
energy sales and deliveries and cost of operations. The volume of energy sales
and deliveries is primarily affected by factors external to the Utilities, such
as growth of customer demand, weather, market prices for energy and economic
conditions. Measures that promote distributed energy resources, such as
distributed generation, demand reduction and energy efficiency, also affect the
volume of energy sales and deliveries. In addition, the decline in business
activity in the Utilities' service territory as a result of the COVID-19
pandemic has resulted and may continue to result in lower billed sales revenues
and increases to the allowance for uncollectible accounts and may result in
increases in write-offs of customer accounts. Under the revenue decoupling
mechanisms in the Utilities' New York electric and gas rate plans, changes in
delivery volumes from levels assumed when rates were approved may affect the
timing of cash flows, but generally not net income. The prices at which the
Utilities provide energy to their customers are determined in accordance with
their rate plans. In general, changes in the Utilities' cost of purchased power,
fuel and gas may affect the timing of cash flows, but not net income, because
the costs are recovered in accordance with rate plans. The Utilities' New York
rate plans allow them to defer costs resulting from a change in legislation,
regulation and related actions that have taken effect during the term of the
rate plans once the costs exceed a specified threshold. Increases to the
allowance for uncollectible accounts related to the COVID-19 pandemic have been
deferred pursuant to the legislative, regulatory and related actions provisions
of their rate plans. Pursuant to their rate plans, the Utilities have recovered
from customers a portion of the tax liability they will pay in the future as a
result of temporary differences between the book and tax basis of assets and
liabilities. These temporary differences affect the timing of cash flows, but
not net income, as the Companies are required to record deferred tax assets and
liabilities at the current corporate tax rate for the temporary differences. For
the Utilities, credits to their customers of the net benefits of the TCJA,
including the reduction of the corporate tax rate to 21 percent, decrease cash
flows from operating activities. See "COVID-19 Regulatory Matters" and "Other
Regulatory Matters" in Note B to the Third Quarter Financial Statements and
"Coronavirus Disease 2019 (COVID-19) Impacts - Liquidity and Financing," above.
Net income is the result of cash and non-cash (or accrual) transactions. Only
cash transactions affect the Companies' cash flows from operating activities.
Principal non-cash charges or credits include depreciation, deferred income tax
expense, amortizations of certain regulatory assets and liabilities, and accrued
unbilled revenue. Non-cash charges or credits may also be accrued under the
revenue decoupling and cost reconciliation mechanisms in the Utilities' New York
electric and gas rate plans.

Net cash flows from operating activities for the nine months ended September 30,
2020 for Con Edison and CECONY were $592 million and $531 million lower,
respectively, than in the 2019 period. The changes in net cash flows for Con
Edison and CECONY primarily reflect higher accounts receivable balances from
customers ($330 million and $287 million, respectively) (see "COVID-19
Regulatory Matters" in Note B to the Third Quarter Financial Statements and
"Coronavirus Disease 2019 (COVID-19) Impacts - Accounting Considerations" and
"Liquidity and Financing," above), higher other receivables and other current
assets ($135 million and $104 million, respectively) primarily due to lower
reimbursement received for Puerto Rico related restoration costs in the 2020
period ($94 million and $94 million, respectively), higher pension and retiree
benefit contributions ($121 million and $112 million, respectively), a change in
pension and retiree benefit obligations ($72 million and $68 million,
respectively), higher system benefit charge ($65 million and $62 million,
respectively), higher cash paid for income taxes, net of refunds received ($59
million and $65 million, respectively), and for CECONY, an increase in accounts
receivables from affiliated companies ($97 million), offset in part by lower
TCJA net benefits provided to customers in the 2020 period ($240 million and
$240 million, respectively).

The change in net cash flows also reflects the timing of payments for and
recovery of energy costs. This timing is reflected within changes to accounts
receivable - customers and recoverable and refundable energy costs within other
regulatory assets and liabilities and accounts payable balances.

Cash Flows Used in Investing Activities
Net cash flows used in investing activities for Con Edison and CECONY were $100
million higher and $25 million lower, respectively, for the nine months ended
September 30, 2020 compared with the 2019 period. The change for Con Edison
primarily reflects an increase in non-utility construction expenditures at the
Clean Energy Businesses ($271 million) and the proceeds from the sale of a
property formerly used by CECONY in its operations in 2019 ($48 million), offset
in part by lower investments in electric and gas transmission projects at Con
Edison Transmission in the 2020 period ($135 million) and a decrease in utility
construction expenditures at CECONY ($71 million) and O&R ($11 million).

--------------------------------------------------------------------------------



Cash Flows from Financing Activities
Net cash flows from financing activities for Con Edison and CECONY were $542
million and $399 million higher, respectively, in the nine months ended
September 30, 2020 compared with the 2019 period.

In July 2020, Con Edison borrowed $820 million pursuant to an April 2020 credit
agreement that was amended in June 2020 (as amended, the Supplemental Credit
Agreement). Con Edison used the proceeds from the borrowing for general
corporate purposes, including repayment of short-term debt bearing interest at
variable rates. Pursuant to the Supplemental Credit Agreement, the borrowing
bears interest at a variable rate and was converted to a term loan that matures
on March 29, 2021. See Note D to the Third Quarter Financial Statements.

In May 2019, Con Edison entered into a forward sale agreement relating to
5,800,000 shares of its common stock. In June 2019, the company issued 4,750,000
shares for $400 million upon physical settlement of shares subject to the
forward sale agreement and in January 2020, Con Edison issued 1,050,000 shares
of its common stock for $88 million upon physical settlement of the remaining
shares subject to its May 2019 forward sale agreement. Con Edison used the
proceeds to invest in CECONY for funding of its capital requirements and other
general corporate purposes. See Note C to the Third Quarter Financial
Statements.

In March 2019, Con Edison issued 5,649,369 shares of its common stock for $425
million upon physical settlement of the remaining shares subject to its November
2018 forward sale agreements. Con Edison used the proceeds to invest in its
subsidiaries for funding of their capital requirements and to repay short-term
debt incurred for that purpose.

In February 2019, Con Edison borrowed $825 million under a two-year variable-rate term loan to fund the repayment of a six-month variable-rate term loan. In June 2019, Con Edison pre-paid $150 million of the amount borrowed.

In June 2020, CECONY redeemed at maturity $350 million of 4.45 percent 10-year debentures.



In March 2020, CECONY issued $600 million aggregate principal amount of 3.35
percent debentures, due 2030 and $1,000 million aggregate principal amount of
3.95 percent debentures, due 2050, the net proceeds from the sale of which will
be used to pay or reimburse the payment of, in whole or in part, existing and
new qualifying eligible green expenditures, such as energy efficiency and clean
transportation expenditures, that include those funded on or after January 1,
2018 until the maturity date of each series of the debentures. Pending the
allocation of the net proceeds to finance or refinance eligible green
expenditures, CECONY used the net proceeds for repayment of short-term debt and
temporarily placed the remaining net proceeds in short-term interest-bearing
instruments. See Note C to the Third Quarter Financial Statements.
In May 2019, CECONY issued $700 million aggregate principal amount of 4.125
percent debentures, due 2049, the net proceeds from the sale of which were used
to repay short-term borrowings and for other general corporate purposes.
In April 2019, CECONY redeemed at maturity $475 million of 6.65 percent 10-year
debentures.

In September 2020, O&R issued $35 million aggregate principal amount of 2.02
percent debentures, due 2030 and $40 million aggregate principal amount of 3.24
percent debentures, due 2050.

In May 2019, a Con Edison Development subsidiary borrowed $464 million, due
2026, secured by equity interests in solar electric production projects, the net
proceeds from the sale of which were used to repay borrowings from Con Edison
and for other general corporate purposes. Con Edison used a portion of the
repayment to pre-pay $150 million of an $825 million two-year variable-rate term
loan and the remainder to repay short-term borrowings and for other general
corporate purposes.
Con Edison's cash flows from financing for the nine months ended September 30,
2020 and 2019 also reflect the proceeds, and reduction in cash used for
reinvested dividends, resulting from the issuance of common shares under the
company's dividend reinvestment, stock purchase and long-term incentive plans of
$79 million and $76 million, respectively.

--------------------------------------------------------------------------------



Cash flows used in financing activities of the Companies also reflect commercial
paper issuances and repayments. The commercial paper amounts outstanding at
September 30, 2020 and 2019 and the average daily balances for the nine months
ended September 30, 2020 and 2019 for Con Edison and CECONY were as follows:
                                                 2020                                    2019

(Millions of Dollars, except Weighted Average Outstanding at


       Daily       Outstanding at              Daily
Yield)                                                  September 30,            average        September 30,            average
Con Edison                                                     $1,009             $1,027               $1,300             $1,122
CECONY                                                           $991               $633                 $930               $743
Weighted average yield                                         0.2  %             1.2  %               2.3  %             2.6  %




Capital Requirements and Resources
Capital Requirements
The Clean Energy Businesses expect to accelerate $150 million of capital
projects from 2021 to 2020 and have increased their estimated capital
requirements in 2020 by an additional $50 million. The estimated capital
requirements of the Clean Energy Businesses for 2020 and 2021 have been updated
from $400 million and $400 million, respectively, to $600 million and $250
million, respectively.

Contractual Obligations
Con Edison's material obligations to make payments pursuant to contracts totaled
$55,119 million and $54,144 million at September 30, 2020 and December 31, 2019,
respectively. The increase at September 30, 2020 is primarily due to increases
in long-term debt, including interest ($1,987 million) and CECONY transportation
and storage purchase obligations ($1,021 million), offset in part by a decrease
in the Utilities' Long-term Purchase Obligations (a component of "Other Purchase
Obligations") due to a change in how the company derives those amounts ($2,371
million). See "Cash Flows from Financing Activities," above. At December 31,
2019, $8,166 million of Long-term Purchase Obligations were derived from the
Utilities' purchasing system as the difference between the amounts authorized
and the amounts paid (or vouchered to be paid) for each obligation. For many of
these obligations, the Utilities were committed to purchase less than the amount
authorized. Payments for Long-term Purchase Obligations were generally assumed
to be made ratably over the term of the obligations. At September 30, 2020,
$5,795 million of Long-term Purchase Obligations were derived from the
Utilities' purchasing system by using a method that identifies the remaining
purchase obligations.

Capital Resources
For each of the Companies, the common equity ratio at September 30, 2020 and
December 31, 2019 was:
                        Common Equity Ratio
                 (Percent of total capitalization)
              September 30, 2020   December 31, 2019
Con Edison           49.3                 49.6
CECONY               48.4                 49.2



At September 30, 2020, the credit ratings assigned by Moody's, S&P and Fitch to
the senior unsecured debt and commercial paper of Con Edison, CECONY and O&R
were as follows:
                                              Moody's    S&P    Fitch
                    Con Edison
                    Senior Unsecured Debt      Baa2      BBB+    BBB+
                    Commercial Paper            P-2      A-2      F2
                    CECONY
                    Senior Unsecured Debt      Baa1       A-      A-
                    Commercial Paper            P-2      A-2      F2
                    O&R
                    Senior Unsecured Debt      Baa1       A-      A-
                    Commercial Paper            P-2      A-2      F2



Securities ratings assigned by rating organizations are expressions of opinion
and are not recommendations to buy, sell or hold securities. A securities rating
is subject to revision or withdrawal at any time by the assigning rating
organization. Each rating should be evaluated independently of any other rating.

--------------------------------------------------------------------------------

Assets, Liabilities and Equity The Companies' assets, liabilities, and equity at September 30, 2020 and December 31, 2019 are summarized as follows.


                                                                                     Clean Energy            Con Edison
                                       CECONY                     O&R                 Businesses            Transmission            Other (a)              Con Edison (b)
(Millions of Dollars)                 2020         2019        2020        2019       2020         2019       2020       2019        2020       2019           2020         2019
ASSETS
Current assets                      $3,447       $3,543        $255        $243       $460         $511        $22         $2         $20      $(27)         $4,204       $4,272
Investments                            505          461          26          26      -            -          1,599      1,585         (6)        (7)          2,124        2,065
Net plant                           38,716       37,414       2,410       2,336      4,421        4,121         17         17       -              1         45,564       43,889
Other noncurrent assets              5,000        5,139         403         401      1,885        1,896         14         14         401        403          7,703        7,853
Total Assets                       $47,668      $46,557      $3,094      $3,006     $6,766       $6,528     $1,652     $1,618        $415       $370        $59,595      $58,079

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities                 $4,407       $4,131        $294

$311 $1,192 $1,525 $115 $135 $1,152 $185

       $7,160       $6,287
Noncurrent liabilities              13,129       13,665       1,108

1,115 217 201 108 88 (44) (17)


       14,518       15,052
Long-term debt                      15,557       14,614         893         818      2,838        2,400        500        500       (582)        195         19,206       18,527
Equity                              14,575       14,147         799         762      2,519        2,402        929        895       (111)          7

18,711 18,213 Total Liabilities and Equity $47,668 $46,557 $3,094 $3,006 $6,766 $6,528 $1,652 $1,618 $415 $370

$59,595 $58,079

(a) Includes parent company and consolidation adjustments. (b) Represents the consolidated results of operations of Con Edison and its businesses.

CECONY


Current assets at September 30, 2020 were $96 million lower than at December 31,
2019. The change in current assets primarily reflects a decrease in cash and
temporary cash investments ($910 million) primarily due to the July 2020 payment
of New York City semi-annual property taxes. The decrease is offset in part by
an increase in prepayments reflecting primarily the July 2020 payment of New
York City semi-annual property taxes, offset in part by three months of
amortization, while the December 2019 balance reflects the amortization of the
entire previous semi-annual payment ($481 million), an increase in accounts
receivables, less allowance for uncollectible accounts ($244 million) and an
increase in accounts receivables from affiliated companies ($83 million).

Investments at September 30, 2020 were $44 million higher than at December 31,
2019. The change in investments primarily reflects an increase in supplemental
retirement income plan assets. See Note E to the Third Quarter Financial
Statements.

Net plant at September 30, 2020 was $1,302 million higher than at December 31,
2019. The change in net plant primarily reflects an increase in electric ($1,030
million), gas ($447 million) and steam ($37 million) plant balances and an
increase in construction work in progress ($267 million), offset in part by an
increase in accumulated depreciation ($649 million).

Other noncurrent assets at September 30, 2020 were $139 million lower than at
December 31, 2019. The change in other noncurrent assets primarily reflects a
decrease in the regulatory asset for unrecognized pension and other
postretirement costs to reflect the final actuarial valuation, as measured at
December 31, 2019, of the pension and other retiree benefit plans in accordance
with the accounting rules for retirement benefits ($618 million). See Notes B, E
and F to the Third Quarter Financial Statements. The change in the regulatory
asset also reflects the year's amortization of accounting costs. This decrease
is offset in part by an increase in the regulatory assets for deferred pension
and other postretirement benefits ($190 million), deferrals for increased costs
related to the COVID-19 pandemic ($101 million), deferred derivative losses ($69
million), deferred storm costs ($60 million) and an increase in the injuries and
damages receivable ($40 million). See "Other Regulatory Matters" in Note B and
Note H to the Third Quarter Financial Statements.

Current liabilities at September 30, 2020 were $276 million higher than at December 31, 2019. The change in current liabilities primarily reflects increases in long-term debt due within one year ($290 million) and accrued interest ($97 million), offset in part by a decrease in notes payable ($146 million).

--------------------------------------------------------------------------------



Noncurrent liabilities at September 30, 2020 were $536 million lower than at
December 31, 2019. The change in noncurrent liabilities primarily reflects a
decrease in the liability for pension and retiree benefits ($690 million) that
primarily reflects the final actuarial valuation, as measured at December 31,
2019, of the plans in accordance with the accounting rules for retirement
benefits. See Notes E and F to the Third Quarter Financial Statements. The
change also reflects a decrease in the regulatory liability for future income
tax ($152 million) and TCJA net benefits ($127 million). These decreases are
offset in part by a change in deferred income taxes and unamortized investment
tax credits ($374 million) that primarily reflects accelerated tax depreciation,
repair deductions and the amortization of excess deferred federal income taxes
due to the TCJA. See Note J to the Third Quarter Financial Statements.

Long-term debt at September 30, 2020 was $943 million higher than at
December 31, 2019. The change in long-term debt primarily reflects the March
2020 issuance of $1,600 million of debentures, offset in part by the
reclassification of $640 million of long-term debt to long-term debt due within
one year. See "Liquidity and Capital Resources - Cash Flows From Financing
Activities" above and Note C to the Third Quarter Financial Statements.

Equity at September 30, 2020 was $428 million higher than at December 31, 2019.
The change in equity primarily reflects net income for the nine months ended
September 30, 2020 ($963 million) and capital contributions from parent ($200
million) in 2020, offset in part by common stock dividends to parent ($737
million) in 2020.

O&R


Net plant at September 30, 2020 was $74 million higher than at December 31,
2019. The change in net plant primarily reflects an increase in electric ($83
million) and gas ($28 million) plant balances and an increase in construction
work in progress ($8 million), offset in part by an increase in accumulated
depreciation ($46 million).

Current liabilities at September 30, 2020 were $17 million lower than at
December 31, 2019. The change in current liabilities primarily reflects a
decrease in accrued taxes to affiliated companies ($12 million), a decrease in
the current regulatory liability for refundable energy ($7 million) and revenue
decoupling mechanism reconciliation ($7 million), offset in part by higher
accounts payable ($12 million).

Long-term debt at September 30, 2020 was $75 million higher than at December 31,
2019. The change in long-term debt reflects the September 2020 issuance of $75
million of debentures. See "Liquidity and Capital Resources - Cash Flows From
Financing Activities" above.

Equity at September 30, 2020 was $37 million higher than at December 31, 2019.
The change in equity primarily reflects net income for the nine months ended
September 30, 2020 ($57 million), capital contributions from parent ($10
million) in 2020 and an increase in other comprehensive income ($7 million),
offset by common stock dividends to parent ($36 million) in 2020.

Clean Energy Businesses
Current assets at September 30, 2020 were $51 million lower than at December 31,
2019. The change in current assets primarily reflects a decrease in accrued
receivables and cash.

Net plant at September 30, 2020 was $300 million higher than at December 31, 2019. The change in net plant primarily reflects additional capital expenditures, offset in part by an increase in accumulated depreciation.



Other noncurrent assets at September 30, 2020 were $11 million lower than at
December 31, 2019. The change in other noncurrent assets primarily reflects the
amortization of the purchase power agreement intangible assets.

Current liabilities at September 30, 2020 were $333 million lower than at
December 31, 2019. The change in current liabilities primarily reflects the
reclassification of the company's PG&E-related non-recourse project debt with a
maturity longer than one year from long-term debt due within one year to
long-term debt ($898 million) (see Note C to the Third Quarter Financial
Statements), offset in part by the reclassification of an intercompany loan
agreement from the parent company from long-term debt to current liabilities
($400 million) and additional working capital requirements.

Noncurrent liabilities at September 30, 2020 were $16 million higher than at
December 31, 2019. The change in noncurrent liabilities primarily reflects the
change in the fair value of derivative liabilities, offset in part by the change

--------------------------------------------------------------------------------

in deferred taxes and the reduction of lease liability associated with the adoption of ASU No. 2016-02 "Leases (Topic 842)."



Long-term debt at September 30, 2020 was $438 million higher than at
December 31, 2019. The change in long-term debt primarily reflects the
reclassification of the company's PG&E-related non-recourse project debt with a
maturity longer than one year from long-term debt due within one year to
long-term debt ($898 million) (see Note C to the Third Quarter Financial
Statements), offset in part by the reclassification of an intercompany loan
agreement from the parent company from long-term debt to current liabilities
($400 million).

Equity at September 30, 2020 was $117 million higher than at December 31, 2019.
The change in equity primarily reflects capital contributions from parent ($100
million) in 2020, an increase in noncontrolling interest ($26 million) in 2020
and net income for the nine months ended September 30, 2020 ($8 million), offset
in part by common stock dividends to parent ($16 million) in 2020.

Con Edison Transmission
Current assets at September 30, 2020 were $20 million higher than at
December 31, 2019. The change in current assets primarily reflects a receivable
of $19 million from Crestwood Pipeline and Storage Northeast LLC (Crestwood),
the joint venture partner in Stagecoach Gas Services, LLC. The agreement between
Crestwood and Con Edison Gas Pipeline and Storage, LLC (CET Gas) provides for
payments from Crestwood to CET Gas for shortfalls in meeting certain earnings
growth performance targets. The payment is expected to total $57 million ($19
million of which is due in the first quarter 2021 and was recorded as a
receivable by CET Gas in March 2020, with an additional $19 million plus
interest due in each of January 2022 and January 2023). See "Con Edison
Transmission" below.

Investments at September 30, 2020 were $14 million higher than at December 31,
2019. The change in investments primarily reflects increased allowance for funds
used during construction (AFUDC) income from Mountain Valley Pipeline, LLC ($44
million) and investment income from NY Transco ($6 million), offset in part by
the decrease in CET Gas' investment in Stagecoach Gas Services, LLC due to the
receivable from Crestwood described above ($19 million) and investment income
less partnership distribution from Stagecoach Services ($16 million).

Current liabilities at September 30, 2020 were $20 million lower than at December 31, 2019. The change in current liabilities primarily reflects a reduction in short-term borrowings under an intercompany capital funding facility.



Noncurrent liabilities at September 30, 2020 were $20 million higher than at
December 31, 2019. The change in noncurrent liabilities reflects primarily an
increase in deferred income taxes and unamortized investment tax credits that
reflects primarily timing differences associated with investments in
partnerships.

Equity at September 30, 2020 was $34 million higher than at December 31, 2019.
The change in equity primarily reflects net income for the nine months ended
September 30, 2020 ($42 million), offset by common stock dividends to parent ($8
million) in 2020.

Off-Balance Sheet Arrangements
At September 30, 2020, none of the Companies' transactions, agreements or other
contractual arrangements met the SEC definition of off-balance sheet
arrangements.

Regulatory Matters For information about the Utilities' regulatory matters, see Note B to the Third

Real-time Estimate Cboe BZX Other stock markets 01:46:22 2024-04-26 pm EDT			5-day change	1st Jan Change
93.22 ^USD	-0.95%		+1.48%	+2.37%

Apr. 22	Barclays Adjusts Price Target on Consolidated Edison to $89 From $87	MT
Apr. 22	Scotiabank Adjusts Consolidated Edison's Price Target to $85 From $91	MT

Barclays Adjusts Price Target on Consolidated Edison to $89 From $87	Apr. 22	MT
Scotiabank Adjusts Consolidated Edison's Price Target to $85 From $91	Apr. 22	MT
S&P 500 Posts Third Consecutive Weekly Drop, Led by Tech, Consumer Discretionary Amid Mixed Earnings, Middle East Turmoil	Apr. 19	MT
Consolidated Edison Maintains Quarterly Dividend at $0.83 Per Share, Payable June 14 to Stockholders of Record May 15	Apr. 18	MT
Consolidated Edison, Inc. Declares Quarterly Dividend, Payable June 14, 2024	Apr. 18	CI
JPMorgan Adjusts Consolidated Edison's Price Target to $90 From $86	Apr. 18	MT
Barclays Adjusts Price Target on Consolidated Edison to $87 From $86, Maintains Equalweight Rating	Mar. 14	MT
FERC approves first offshore wind project to connect to New York's grid, Equinor says	Mar. 13	RE
Equitrans delays WV-VA Mountain Valley natgas pipe again, boosts cost	Feb. 20	RE
UBS Adjusts Consolidated Edison Price Target to $94 From $99, Maintains Neutral Rating	Feb. 16	MT
RBC Trims Price Target on Consolidated Edison to $93 From $94, Keeps Sector Perform Rating	Feb. 16	MT
Consolidated Edison Q4 Adjusted Earnings Rise, Operating Revenue Falls; 2024 Adjusted EPS Outlook Set	Feb. 15	MT
Earnings Flash (ED) CONSOLIDATED EDISON Reports Q4 EPS $1.00, vs. Street Est of $0.97	Feb. 15	MT
Con Edison beats fourth-quarter profit estimates on lower operating expenses	Feb. 15	RE
Consolidated Edison, Inc. Reports Earnings Results for the Fourth Quarter Ended December 31, 2023	Feb. 15	CI
Consolidated Edison, Inc. Reports Earnings Results for the Full Year Ended December 31, 2023	Feb. 15	CI
Tech-led U.S. 'exceptionalism' underlined	Feb. 15	RE
Barclays Trims Price Target on Consolidated Edison to $86 From $88, Maintains Equalweight Rating	Jan. 22	MT
New York regulator approves Con Edison's $1.2 bln clean city project	Jan. 18	RE
Consolidated Edison Raises Quarterly Dividend to $0.83/Share from $0.81; Payable March 15 to Holders of Record on Feb. 14	Jan. 18	MT
Consolidated Edison, Inc. Declares Quarterly Dividend, Payable on March 15, 2024	Jan. 18	CI
FirstEnergy, Duke Energy Report Progress After Hundreds of Thousands of Power Outages	Jan. 10	DJ
Over half a million on US East Coast lose power due to winter storm	Jan. 10	RE
Massive winter storm batters US, knocks out power to over 300,000 customers	Jan. 09	RE
North American Morning Briefing : Bond Yields Rise -2-	Jan. 05	DJ

	1st Jan change	Capi.
CONSOLIDATED EDISON, INC.	+2.37%	32.54B
NEXTERA ENERGY	+8.62%	137B
SOUTHERN COMPANY	+5.09%	81.33B
IBERDROLA, S.A.	-2.19%	77.24B
DUKE ENERGY CORPORATION	+0.86%	76.4B
ENEL S.P.A.	-8.92%	65.93B
CONSTELLATION ENERGY CORPORATION	+61.22%	59.25B
AMERICAN ELECTRIC POWER COMPANY, INC.	+5.64%	45.74B
DOMINION ENERGY, INC.	+6.91%	42.69B
GE VERNOVA INC.	0.00%	40.35B

Consolidated Edison, Inc.

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US2091151041

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