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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

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FORM 8-K

 

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CURRENT REPORT

Pursuant to Section 13 or 15(d) of

The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported)

August 2, 2006

 

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Consolidated Edison, Inc.

(Exact name of registrant as specified in its charter)

 

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New York		1-14514		13-3965100
(State or Other Jurisdiction of Incorporation)		(Commission File Number)		(IRS Employer Identification No.)

 

4 Irving Place, New York, New York		10003
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code

(212) 460-4600

 

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Consolidated Edison Company of New York, Inc.

(Exact name of registrant as specified in its charter)

 

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New York		1-1217		13-5009340
(State or Other Jurisdiction of Incorporation)		(Commission File Number)		(IRS Employer Identification No.)

 

4 Irving Place, New York, New York		10003
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code

(212) 460-4600

 

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(Former name or former address, if changed since last report)

 

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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

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INFORMATION TO BE INCLUDED IN THE REPORT

 

ITEM 2.02

Results of Operations and Financial Condition

On August 2, 2006, Consolidated Edison, Inc. (Con Edison) issued a press release reporting, among other things, its results of operations for the three months ended June 30, 2006. Con Edison’s unaudited consolidated balance sheets at June 30, 2006 and December 31, 2005 and consolidated income statements for the three and six month periods ended June 30, 2006 and 2005 were attached to the press release. The press release (including its attachments) is “furnished” as an exhibit to this report pursuant to Item 2.02 of Form 8-K.

 

ITEM 9.01

Financial Statements and Exhibits

(d) Exhibits

 

Exhibit 99		Press release, dated August 2, 2006, furnished pursuant to Item 2.02 of Form 8-K.

 

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, each registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Date: August 3, 2006

 

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Exhibit 99

 

		Media Relations		Consolidated Edison, Inc.
		212 460 4111 (24 hours)		4 Irving Place
				New York NY 10003
				www.conEdison.com

 

FOR IMMEDIATE RELEASE		Contact: Joseph Petta
August 2, 2006		212-460-4111

CON EDISON, INC. REPORTS 2006 SECOND QUARTER EARNINGS

NEW YORK - Consolidated Edison, Inc. (Con Edison) [NYSE: ED] today reported 2006 second quarter earnings of $124 million or $0.50 a share, compared with earnings of $115 million or $0.47 cents a share for the second quarter of 2005.

“We are spending more than $1.8 billion this year to improve our energy delivery systems,” said Kevin Burke, Chairman, President and Chief Executive Officer. “These investments reflect our commitment to our customers and our determination to meet New York’s growing demand for energy,” he said.

The company’s net income for common stock for the first six months of 2006 was $305 million or $1.24 a share compared with $297 million or $1.22 a share for the first six months of 2005.

During a July 2006 heat wave, electric service to a number of customers in Con Edison of New York’s Long Island City distribution network in Queens, New York was interrupted. The company now expects its earnings for the year 2006 to be in the range of $2.75 to $3.00 per share. The company’s previous forecast of 2006 earnings was in the range of $2.90 to $3.10 per share.

The Companies’ results of operations for the three and six months ended June 30, 2006, as compared with the 2005 periods, reflect growth in weather-adjusted sales, milder winter and spring weather, the Companies’ rate plans (including the electric rate plan that took effect in April 2005) and, for Con Edison, the results of the competitive energy businesses’ including net mark-to-market losses. The following table presents the effect on earnings per share and net income for the second quarter and first six months of 2006, as compared to the 2005 periods, resulting from these and other major factors:

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CON EDISON, INC. REPORTS 2006 SECOND QUARTER EARNINGS		Page 2

 

		Second Quarter Variation								Six Months Ended Variation
		Earnings per Share				Net Income (Millions of Dollars)				Earnings per Share				Net Income (Millions of Dollars)
Con Edison of New York
Sales growth (estimated)		$	0.03			$	7			$	0.06			$	14
Impact of weather in 2006 versus 2005 (estimated)			(0.04	)			(10	)			(0.12	)			(29	)
Electric rate plan (estimated)			0.11				29				0.42				102
Gas rate plan (estimated)			0.02				4				0.05				11
Steam rate plan (estimated)			0.02				4				0.05				13
Higher operations and maintenance expense			(0.05	)			(13	)			(0.09	)			(21	)
Stock-based compensation expense			—				(1	)			(0.02	)			(6	)
Higher depreciation and property taxes			(0.06	)			(14	)			(0.17	)			(41	)
Higher interest charges			(0.04	)			(10	)			(0.06	)			(15	)
Other (includes effect of dilution on earnings per share)			(0.02	)			(1	)			(0.03	)			(1	)
Total Con Edison of New York			(0.03	)			(5	)			0.09				27
Orange and Rockland Utilities			—				(2	)			(0.03	)			(7	)
Competitive energy businesses
Earnings excluding mark-to-market losses (net)			0.08				20				0.13				31
Mark-to-market losses (net)			(0.02	)			(5	)			(0.14	)			(34	)
Other, including parent company expenses			—				—				(0.04	)			(11	)
Discontinued operations			—				1				0.01				2
Total variation		$	0.03			$	9			$	0.02			$	8

The earnings per share variations shown above reflect the dilutive effect of a higher weighted average number of common shares outstanding in the 2006 three-month and six-month periods (246 million shares in each period) than in the 2005 three-month and six-month periods (243 million shares in each period).

For the three months ended June 30, 2006, amounts of electricity and steam delivered by Con Edison of New York, after adjusting for variations in weather and billing days in the period, increased by 2.0 percent and 0.3 percent compared with the 2005 period, respectively. Gas deliveries, after adjusting for variations in weather and billing days in the period, decreased 2.2 percent compared with the prior period.

For the first six months of 2006, amounts of electricity delivered by Con Edison of New York, after adjusting for variations in weather and billing days in the period, increased 1.3 percent. Gas and steam deliveries, after adjusting for variations in weather and billing days in the period, decreased 0.4 percent and 1.0 percent, respectively, as compared with the 2005 period.

Refer to the attachments to this press release for the consolidated balance sheets at June 30, 2006 and December 31, 2005 and the consolidated income statements for the three and six months ended June 30, 2006 and 2005. For additional information related to utility sales and revenues go to the Con Edison Web site at www.conedison.com, select “Investor Information” and then select “Financial Reports.”

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CON EDISON, INC. REPORTS 2006 SECOND QUARTER EARNINGS		Page 3

This press release contains forward-looking statements that reflect expectations and not facts. Actual results may differ materially from those expectations because of factors such as those identified in reports the company has filed with the Securities and Exchange Commission.

Consolidated Edison, Inc. is one of the nation’s largest investor-owned energy companies, with approximately $12 billion in annual revenues and $25 billion in assets. The company provides a wide range of energy-related products and services to its customers through the following subsidiaries: Consolidated Edison Company of New York, Inc., a regulated utility providing electric, gas, and steam service in New York City and Westchester County, New York; Orange and Rockland Utilities, Inc., a regulated utility serving customers in a 1,350 square mile area in southeastern New York state and adjacent sections of northern New Jersey and northeastern Pennsylvania; Consolidated Edison Solutions, Inc., a retail energy supply and services company; Consolidated Edison Energy, Inc., a wholesale energy supply company; and Consolidated Edison Development, Inc., a company that owns and operates generating plants and participates in other infrastructure projects.

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Consolidated Edison, Inc.

CONSOLIDATED BALANCE SHEET

(Unaudited)

 

		June 30, 2006			December 31, 2005
		(Millions of Dollars)
ASSETS
UTILITY PLANT, AT ORIGINAL COST
Electric		$	14,088		$	13,586
Gas			3,133			3,044
Steam			1,662			1,624
General			1,585			1,541
TOTAL			20,468			19,795
Less: Accumulated depreciation			4,513			4,355
Net			15,955			15,440
Construction work in progress			915			771
NET UTILITY PLANT			16,870			16,211
NON-UTILITY PLANT
Unregulated generating assets, less accumulated depreciation of $115 and $102 in 2006 and 2005, respectively			797			810
Non-utility property, less accumulated depreciation of $34 and $31 in 2006 and 2005, respectively			35			38
Non-utility property held for sale			—			52
Construction work in progress			1			1
NET PLANT			17,703			17,112
CURRENT ASSETS
Cash and temporary cash investments			63			81
Restricted cash			18			15
Accounts receivable - customers, less allowance for uncollectible accounts of $40 and $39 in 2006 and 2005, respectively			678			1,025
Accrued unbilled revenue			111			116
Other receivables, less allowance for uncollectible accounts of $5 and $6 in 2006 and 2005, respectively			388			350
Fuel oil, at average cost			60			47
Gas in storage, at average cost			205			248
Materials and supplies, at average cost			138			130
Prepayments			148			434
Fair value of derivative assets			107			331
Recoverable energy costs			200			221
Current assets held for sale			—			8
Deferred derivative losses			77			9
Other current assets			217			147
TOTAL CURRENT ASSETS			2,410			3,162
INVESTMENTS			269			265
DEFERRED CHARGES, REGULATORY ASSETS AND NONCURRENT ASSETS
Goodwill			406			406
Intangible assets, less accumulated amortization of $29 and $24 in 2006 and 2005, respectively			85			90
Prepaid pension costs			1,437			1,474
Regulatory assets			2,066			2,017
Other deferred charges and noncurrent assets			278			324
TOTAL DEFERRED CHARGES, REGULATORY ASSETS AND NONCURRENT ASSETS			4,272			4,311
TOTAL ASSETS		$	24,654		$	24,850

The accompanying notes are an integral part of these financial statements.

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Consolidated Edison, Inc.

CONSOLIDATED BALANCE SHEET

(Unaudited)

 

		June 30, 2006			December 31, 2005
		(Millions of Dollars)
CAPITALIZATION AND LIABILITIES
CAPITALIZATION
Common shareholders’ equity (See Statement of Common Shareholders’ Equity)		$	7,375		$	7,310
Preferred stock of subsidiary			213			213
Long-term debt			8,063			7,398
TOTAL CAPITALIZATION			15,651			14,921
MINORITY INTERESTS			42			42
NONCURRENT LIABILITIES
Obligations under capital leases			28			30
Provision for injuries and damages			166			167
Pensions and retiree benefits			284			223
Superfund and other environmental costs			264			238
Asset retirement obligations			97			94
Noncurrent liabilities held for sale			—			9
Other noncurrent liabilities			104			64
TOTAL NONCURRENT LIABILITIES			943			825
CURRENT LIABILITIES
Long-term debt due within one year			44			22
Notes payable			352			755
Accounts payable			963			1,236
Customer deposits			224			229
Accrued taxes			31			94
Accrued interest			125			102
Accrued wages			85			77
Fair value of derivative liabilities			260			133
Deferred derivative gains			14			224
Deferred income taxes - recoverable energy costs			82			90
Current liabilities held for sale			—			12
Other current liabilities			258			349
TOTAL CURRENT LIABILITIES			2,438			3,323
DEFERRED CREDITS AND REGULATORY LIABILITIES
Deferred income taxes and investment tax credits			3,726			3,644
Regulatory liabilities			1,831			2,062
Other deferred credits			23			33
TOTAL DEFERRED CREDITS AND REGULATORY LIABILITIES			5,580			5,739
TOTAL CAPITALIZATION AND LIABILITIES		$	24,654		$	24,850

The accompanying notes are an integral part of these financial statements.

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Consolidated Edison, Inc.

CONSOLIDATED INCOME STATEMENT

(Unaudited)

 

		For the Three Months Ended June 30,								For the Six Months Ended June 30,
		2006				2005				2006				2005
		(Millions of Dollars/Except Share Data)
OPERATING REVENUES
Electric		$	1,666			$	1,640			$	3,425			$	3,144
Gas			349				354				1,192				1,082
Steam			106				96				381				363
Non-utility			434				305				874				597
TOTAL OPERATING REVENUES			2,555				2,395				5,872				5,186
OPERATING EXPENSES
Purchased power			1,019				958				2,203				1,888
Fuel			145				139				400				331
Gas purchased for resale			189				201				745				653
Other operations and maintenance			437				405				877				819
Depreciation and amortization			153				146				305				287
Taxes, other than income taxes			299				281				617				551
Income taxes			65				39				169				149
TOTAL OPERATING EXPENSES			2,307				2,169				5,316				4,678
OPERATING INCOME			248				226				556				508
OTHER INCOME (DEDUCTIONS)
Investment and other income			8				11				20				17
Allowance for equity funds used during construction			1				—				2				8
Preferred stock dividend requirements of subsidiary			(3	)			(3	)			(6	)			(6	)
Other deductions			(4	)			(4	)			(9	)			(10	)
Income taxes			6				2				(2	)			6
TOTAL OTHER INCOME (DEDUCTIONS)			8				6				5				15
INTEREST EXPENSE
Interest on long-term debt			119				113				232				219
Other interest			12				1				25				10
Allowance for borrowed funds used during construction			(1	)			—				(2	)			(6	)
NET INTEREST EXPENSE			130				114				255				223
INCOME FROM CONTINUING OPERATIONS			126				118				306				300
INCOME FROM DISCONTINUED OPERATIONS (NET OF INCOME TAXES)			(2	)			(3	)			(1	)			(3	)
NET INCOME		$	124			$	115			$	305			$	297
EARNINGS PER COMMON SHARE - BASIC
Continuing operations		$	0.51			$	0.48			$	1.24			$	1.23
Discontinued operations			(0.01	)			(0.01	)			—				(0.01	)
Net income		$	0.50			$	0.47			$	1.24			$	1.22
EARNINGS PER COMMON SHARE - DILUTED
Continuing operations		$	0.51			$	0.48			$	1.24			$	1.23
Discontinued operations			(0.01	)			(0.01	)			—				(0.01	)
Net income		$	0.50			$	0.47			$	1.24			$	1.22
DIVIDENDS DECLARED PER SHARE OF COMMON STOCK		$	0.575			$	0.570			$	1.150			$	1.140
AVERAGE NUMBER OF SHARES OUTSTANDING - BASIC (IN MILLIONS)			245.9				243.4				245.7				243.1
AVERAGE NUMBER OF SHARES OUTSTANDING - DILUTED (IN MILLIONS)			246.7				244.2				246.7				243.8

The accompanying notes are an integral part of these financial statements.