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Released March 08, 2024 | SUGAR LAND
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Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--Leaders from utility company Consolidated Edison Incorporated (NYSE:ED) (New York, New York) remain committed to a clean energy future, but they plan to create that future closer to its New York home following last year's sale of the company's clean energy business unit, which developed non-emitting electricity resources far outside its New York service territory.
Subsidiaries of Consolidated Edison (Con Ed) provide utility services to about 5.3 million customers in and around New York City. Con Ed also operates an electric transmission business that is regulated by the Federal Energy Regulatory Commission (FERC) (Washington, D.C.). Most of the company's clean energy aspirations will be delivered through its regulated poles and wires infrastructure, though some clean energy investments remain. The company sold most of its generating stations decades ago.
Over the 2019-2023 period, Con Ed invested about $1.6 billion building its merchant clean energy businesses, which mostly developed non-emitting electric projects outside the company's New York service area. But those businesses were sold for about $4 billion in a deal that closed last March. The buyer was RWE Renewables Americas, LLC (Austin, Texas). Con Ed booked a pre-tax gain of about $866 million on the transaction, according to the company's third-quarter 2023 10-Q form filed at the U.S. Securities and Exchange Commission (SEC) (Washington, D.C.).
With that transaction, Con Ed reverted to a pure-play pipes and wires utility, exiting the volatile merchant generating business like several other utilities have before it.
In a February 15 earnings call with analysts, Con Ed officials said the company planned to increase its five-year capital spend by about 35%, to a total of $28 billion over the 2024-2028 period, up from about $20.7 billion for the 2019-2023 period.
Click on the image at right to see Con Ed's current five-year capital program (2024-2028) and its previous five-year capital plan (2019-2023).
Over the 2024-2028 period, most of the company's planned spend, about 86%, will go to its electricity business, with the New York City and Westchester unit, Consolidated Edison Company of New York (CECONY), getting about 93% of that business' capital dollars. On the gas side, CECONY is expected to draw about 93% of gas-side investment dollars over the 2024-2028 period.
Late last year, Con Ed asked New York's utility regulators to dedicate as much as $1.3 billion of future capital spending to enhance its resilience to severe weather, company officials told investors February 15. That plan seeks to:
Click on the image at right to see Con Ed's proposed five-year capital investment plan to improve the utility's resilience.
Most of that proposed resilience spending, about $904 million, will go to the unit serving New York City and Westchester County, Consolidated Edison Company of New York (CECONY). The balance, approximately $411 million, will be invested in the unit serving Orange & Rockland counties.
Industrial Info is tracking about 10 active Con Ed capital projects in New York State valued at about $533 million. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can click here for a full list.
For 2023, Con Ed earned $2.5 billion on $14.7 billion of revenue, an improvement over 2022, when the company earned $1.6 billion on revenue of $15.7 billion.
Commenting on Con Edison's performance in 2023, Chairman and Chief Executive Tim Cawley said, "We built tremendous momentum in 2023 toward a low-carbon future, a vibrant economy driven by green jobs and equal opportunity for everyone to benefit from this historic transition. The unmatched skill of our employees and the commitment of our customers enabled us to complete our Reliable Clean City transmission line in Queens, begin construction of our Brooklyn Clean Energy Hub, and make progress on other projects throughout our system."
"Clean energy is the future of our industry and we are making strategic investments to build a grid capable of carrying that clean energy and protecting our infrastructure from climate change while maintaining our world-class reliability."
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
Subsidiaries of Consolidated Edison (Con Ed) provide utility services to about 5.3 million customers in and around New York City. Con Ed also operates an electric transmission business that is regulated by the Federal Energy Regulatory Commission (FERC) (Washington, D.C.). Most of the company's clean energy aspirations will be delivered through its regulated poles and wires infrastructure, though some clean energy investments remain. The company sold most of its generating stations decades ago.
Over the 2019-2023 period, Con Ed invested about $1.6 billion building its merchant clean energy businesses, which mostly developed non-emitting electric projects outside the company's New York service area. But those businesses were sold for about $4 billion in a deal that closed last March. The buyer was RWE Renewables Americas, LLC (Austin, Texas). Con Ed booked a pre-tax gain of about $866 million on the transaction, according to the company's third-quarter 2023 10-Q form filed at the U.S. Securities and Exchange Commission (SEC) (Washington, D.C.).
With that transaction, Con Ed reverted to a pure-play pipes and wires utility, exiting the volatile merchant generating business like several other utilities have before it.
In a February 15 earnings call with analysts, Con Ed officials said the company planned to increase its five-year capital spend by about 35%, to a total of $28 billion over the 2024-2028 period, up from about $20.7 billion for the 2019-2023 period.
Click on the image at right to see Con Ed's current five-year capital program (2024-2028) and its previous five-year capital plan (2019-2023).Over the 2024-2028 period, most of the company's planned spend, about 86%, will go to its electricity business, with the New York City and Westchester unit, Consolidated Edison Company of New York (CECONY), getting about 93% of that business' capital dollars. On the gas side, CECONY is expected to draw about 93% of gas-side investment dollars over the 2024-2028 period.
Late last year, Con Ed asked New York's utility regulators to dedicate as much as $1.3 billion of future capital spending to enhance its resilience to severe weather, company officials told investors February 15. That plan seeks to:
- Harden energy infrastructure and assets against projected climate conditions to prevent outages
- Modify system design and flexibility to mitigate disruptions to customer service, and
- Implement operational improvements to shorten outages after extreme weather
Click on the image at right to see Con Ed's proposed five-year capital investment plan to improve the utility's resilience.Most of that proposed resilience spending, about $904 million, will go to the unit serving New York City and Westchester County, Consolidated Edison Company of New York (CECONY). The balance, approximately $411 million, will be invested in the unit serving Orange & Rockland counties.
Industrial Info is tracking about 10 active Con Ed capital projects in New York State valued at about $533 million. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can click here for a full list.
For 2023, Con Ed earned $2.5 billion on $14.7 billion of revenue, an improvement over 2022, when the company earned $1.6 billion on revenue of $15.7 billion.
Commenting on Con Edison's performance in 2023, Chairman and Chief Executive Tim Cawley said, "We built tremendous momentum in 2023 toward a low-carbon future, a vibrant economy driven by green jobs and equal opportunity for everyone to benefit from this historic transition. The unmatched skill of our employees and the commitment of our customers enabled us to complete our Reliable Clean City transmission line in Queens, begin construction of our Brooklyn Clean Energy Hub, and make progress on other projects throughout our system."
"Clean energy is the future of our industry and we are making strategic investments to build a grid capable of carrying that clean energy and protecting our infrastructure from climate change while maintaining our world-class reliability."
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
