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Released June 19, 2023 | SUGAR LAND
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Written by John Egan for Industrial Info Resources (Sugar Land, Texas)--Consolidated Edison Incorporated (Con Ed) (NYSE:CE) (New York, New York) plans to make about $14.6 billion in capital investments over the 2023-2025 period, about $2 billion more than they invested over the prior three-year period, company executives told investors last month in announcing first-quarter earnings.
Click on the icon at right to see Con Ed's three-year capital program.
Con Ed is the holding company for three operating units. One unit provides electricity, natural gas and steam service to customers in the five New York boroughs and Westchester County, a close-in suburb. A second subsidiary provides electricity and gas service to customers in Orange and Rockland counties, in upstate New York. A third unit provides FERC-jurisdictional interstate transmission service. Overall, Con Ed serves 5.1 million retail customers.
Over a longer 10-year period, 2023-2032, officials on a May 4 earnings call said capital investments could zoom upward to as much as $72 billion. Most of that, about $68 billion, will go to investments in the unit that serves the five New York boroughs and Westchester County, Con Edison Company of New York (CECONY). The company's other utility operating unit, Orange & Rockland Utilities, will see about $3.7 billion of investment over the next 10 years.
Over an even longer period, to 2050, Con Ed officials told investors the CECONY unit could invest up to $102 billion in clean energy, climate resilience and its core business, mostly energy infrastructure.
Click on the icon at right to see Con Ed's planned 10-year capital program and the spending plans of its main unit, CECONY, to 2050.
Industrial Info is tracking 10 capital projects involving Con Ed or one of its units in New York State, with a total investment value (TIV) of about $542 million. Subscribers to Industrial Info's Global Market Inyelligence (GMI) Power Project Database can click here for a list of detailed project reports.
In discussing its capital plans on the May 4 earnings call, utility officials said, "Aggressive New York policy initiatives driving clean energy transition will require robust investment to implement."
This past March, Con Ed sold its clean energy businesses to RWE Renewables Americas, LLC., in a deal valued at about $6.8 billion. In previous years, Con Ed had invested heavily in that line of business, building renewable energy projects in a variety of states, including Pennsylvania, South Dakota, Nebraska, Nevada, Montana, Texas and California. For more on that, see June 19, 2018, article - Far From Home, Con Edison Unit Builds Renewable Generation. The company plans to use the proceeds from the sale to pay down debt, buy back $1 billion of stock and eliminate the need to raise capital through the sale of stock for 2023 and 2024.
"Con Edison's focus is on New York," Con Ed Chairman and Chief Executive Timothy P. Cawley said March 1 in announcing the asset sale. "We are leading the transition to a clean energy future (in New York) while maintaining a safe, cost-effective system that delivers world-class reliability for our customers."
The sale announcement said Con Edison "continues to make significant investments in clean energy transmission projects, building electrification, energy efficiency, electric vehicle infrastructure, battery storage and other technologies" in the Empire State. The company also wants to invest in and operate renewable generation in New York. The company is seeking state regulatory approval to own renewable generation.
New York State has an aggressive electric decarbonization program: By 2030, 70% of the state's electricity will come from renewable sources, and by 2035, 9,000 megawatts (MW) of offshore wind will be operating, according to the state Climate Leadership and Community Protection Act. For more on that law, see May 31, 2023, article - The Cost of Greening Electricity: A New York Case Study.
On the May 4 earnings call, Con Ed officials detailed their long-range plans for the energy transition, which they broke into four areas:
For the first quarter, the sale of the renewables business boosted Con Edison's net earnings to $1.43 billion compared to $602 million in the comparable year-earlier period. Stripping out the effects of the asset sale resulted in adjusted first-quarter earnings of $645 million for the just-completed quarter compared to $522 million for the January-March 2022 quarter.
Discussing first-quarter earnings, Chairman and CEO Cawley commented, "We continued to produce strong financial results and solid returns for our shareholders ... as we invest in a clean energy future and deliver industry-leading reliability for our customers." The sale of the clean energy businesses "will allow us to sharply focus on the clean energy transition in New York. We've helped our customers connect more than 700 megawatts of solar generation, a significant clean energy milestone, and their embrace of this renewable resource reduces the amount of fossil fuel-generated power in our region, meaning lower emissions and cleaner air."
"As we look forward this year and beyond," Cawley continued, "investment in clean, resilient, and reliable energy systems while delivering for our customers, partners, communities, and shareholders will be the foundation for our continued growth and success."
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) 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).
Con Ed is the holding company for three operating units. One unit provides electricity, natural gas and steam service to customers in the five New York boroughs and Westchester County, a close-in suburb. A second subsidiary provides electricity and gas service to customers in Orange and Rockland counties, in upstate New York. A third unit provides FERC-jurisdictional interstate transmission service. Overall, Con Ed serves 5.1 million retail customers.
Over a longer 10-year period, 2023-2032, officials on a May 4 earnings call said capital investments could zoom upward to as much as $72 billion. Most of that, about $68 billion, will go to investments in the unit that serves the five New York boroughs and Westchester County, Con Edison Company of New York (CECONY). The company's other utility operating unit, Orange & Rockland Utilities, will see about $3.7 billion of investment over the next 10 years.
Over an even longer period, to 2050, Con Ed officials told investors the CECONY unit could invest up to $102 billion in clean energy, climate resilience and its core business, mostly energy infrastructure.
Industrial Info is tracking 10 capital projects involving Con Ed or one of its units in New York State, with a total investment value (TIV) of about $542 million. Subscribers to Industrial Info's Global Market Inyelligence (GMI) Power Project Database can click here for a list of detailed project reports.
In discussing its capital plans on the May 4 earnings call, utility officials said, "Aggressive New York policy initiatives driving clean energy transition will require robust investment to implement."
This past March, Con Ed sold its clean energy businesses to RWE Renewables Americas, LLC., in a deal valued at about $6.8 billion. In previous years, Con Ed had invested heavily in that line of business, building renewable energy projects in a variety of states, including Pennsylvania, South Dakota, Nebraska, Nevada, Montana, Texas and California. For more on that, see June 19, 2018, article - Far From Home, Con Edison Unit Builds Renewable Generation. The company plans to use the proceeds from the sale to pay down debt, buy back $1 billion of stock and eliminate the need to raise capital through the sale of stock for 2023 and 2024.
"Con Edison's focus is on New York," Con Ed Chairman and Chief Executive Timothy P. Cawley said March 1 in announcing the asset sale. "We are leading the transition to a clean energy future (in New York) while maintaining a safe, cost-effective system that delivers world-class reliability for our customers."
The sale announcement said Con Edison "continues to make significant investments in clean energy transmission projects, building electrification, energy efficiency, electric vehicle infrastructure, battery storage and other technologies" in the Empire State. The company also wants to invest in and operate renewable generation in New York. The company is seeking state regulatory approval to own renewable generation.
New York State has an aggressive electric decarbonization program: By 2030, 70% of the state's electricity will come from renewable sources, and by 2035, 9,000 megawatts (MW) of offshore wind will be operating, according to the state Climate Leadership and Community Protection Act. For more on that law, see May 31, 2023, article - The Cost of Greening Electricity: A New York Case Study.
On the May 4 earnings call, Con Ed officials detailed their long-range plans for the energy transition, which they broke into four areas:
- Clean Energy: Economy-wide net-zero greenhouse gas (GHG) emissions in the company's service area by 2050
- Climate Resilience: Increased resilience of the company's energy infrastructure to adapt to climate change
- Core Service: World-class safety, reliability and security, while managing the rate impacts and equity challenges of the energy transition
- Customer Engagement: Industry-leading customer experience and facilitation through the energy transition
For the first quarter, the sale of the renewables business boosted Con Edison's net earnings to $1.43 billion compared to $602 million in the comparable year-earlier period. Stripping out the effects of the asset sale resulted in adjusted first-quarter earnings of $645 million for the just-completed quarter compared to $522 million for the January-March 2022 quarter.
Discussing first-quarter earnings, Chairman and CEO Cawley commented, "We continued to produce strong financial results and solid returns for our shareholders ... as we invest in a clean energy future and deliver industry-leading reliability for our customers." The sale of the clean energy businesses "will allow us to sharply focus on the clean energy transition in New York. We've helped our customers connect more than 700 megawatts of solar generation, a significant clean energy milestone, and their embrace of this renewable resource reduces the amount of fossil fuel-generated power in our region, meaning lower emissions and cleaner air."
"As we look forward this year and beyond," Cawley continued, "investment in clean, resilient, and reliable energy systems while delivering for our customers, partners, communities, and shareholders will be the foundation for our continued growth and success."
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) 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).
