CONSOLIDATED EDISON INC

Previous wording

This combined management’s discussion and analysis of financial condition and results of operations (MD&A) relates to the consolidated financial statements (the Second 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 MD&A about CECONY applies to Con Edison.

Current wording

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 MD&A about CECONY applies to Con Edison.

Previous wording

This MD&A should be read in conjunction with the Second Quarter Financial Statements and the notes thereto and the MD&A in Item 7 of the Companies’ combined Annual Report on Form 10-K for the year ended December 31, 2023 (File Nos.1-14514 and 1-01217, the Form 10-K) and the MD&A in Part 1, Item 2 of the Companies' combined Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2024 (File Nos. 1-14514 and 1-01217).

Current wording

This MD&A should be read in conjunction with the Third Quarter Financial Statements and the notes thereto and the MD&A in Item 7 of the Companies’ combined Annual Report on Form 10-K for the year ended December 31, 2023 (File Nos.1-14514 and 1-01217, 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, 2024 and June 30, 2024 (File Nos. 1-14514 and 1-01217).

Previous wording

Con Edison’s principal business operations are those of the Utilities 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. Con Edison Transmission, through its subsidiaries, invests in electric transmission projects supporting Con Edison's effort to transition to clean, renewable energy and manages, through joint ventures, both electric and gas assets while seeking to develop electric transmission projects that will bring clean, renewable electricity to customers focusing on New York and the Northeast. See "Investments" in Note A to the Second Quarter Financial Statements. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note Q and Note R to the Second Quarter Financial Statements.

Current wording

Con Edison’s principal business operations are those of the Utilities 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. Con Edison Transmission, through its subsidiaries, invests in electric transmission projects supporting Con Edison's effort to transition to clean, renewable energy and manages, through joint ventures, both electric and gas assets while seeking to develop electric transmission projects that will bring clean, renewable electricity to customers focusing on New York and the Northeast. See "Investments" in Note A to the Third Quarter Financial Statements. On March 1, 2023, Con Edison completed the sale of all of the stock of the Clean Energy Businesses. See Note R and Note S to the Third Quarter Financial Statements.

Previous wording

Con Edison seeks to provide shareholder value through continued dividend growth, supported by earnings growth in regulated utilities and contracted electric and gas assets. Con Edison invests to provide reliable, resilient, safe and clean energy critical for its New York and New Jersey customers. Con Edison is a responsible neighbor, helping the communities it serves become more sustainable.

Current wording

Con Edison seeks to provide shareholder value through continued dividend growth, supported by earnings growth in regulated utilities and contracted electric transmission assets. Con Edison invests to provide reliable, resilient, safe and clean energy critical for its New York and New Jersey customers. Con Edison is a responsible neighbor, helping the communities it serves become more sustainable.

Previous wording

In addition to the Companies’ material contingencies described in Notes B, G and H to the Second Quarter Financial Statements, the Companies’ management considers the following events, trends, and uncertainties to be important to understanding the Companies’ current and future financial condition.

Current wording

In addition to the Companies’ material contingencies described in Notes B, G and H to the Third Quarter Financial Statements, the Companies’ management considers the following events, trends, and uncertainties to be important to understanding the Companies’ current and future financial condition.

Previous wording

At June 30, 2024, CECONY’s and O&R’s customer accounts receivables balances of $2,742 million and $117 million, respectively, included aged accounts receivables (balances outstanding in excess of 60 days) of $1,553 million and $37 million, respectively. In comparison, CECONY’s and O&R’s customer accounts receivable balances at February 28, 2020 were $1,322 million and $89 million, respectively, including aged accounts receivables (balances outstanding in excess of 60 days) of $408 million and $15 million, respectively. Prior to the start of the COVID-19 pandemic, the Utilities’ practice was to write off customer accounts receivables as uncollectible 90 days after the account is disconnected for non-payment or the account is closed during the collection process. In general, the Utilities suspended service disconnections during the COVID-19 pandemic. CECONY’s rate plans include reconciliation of late payment charges (from January 1, 2023 through December 31, 2025 for electric and gas and from January 1, 2020 through October 31, 2026 for steam) and write-offs of customer accounts receivable balances (from January 1, 2020 through December 31, 2025 for electric and gas and from January 1, 2020 through October 31, 2026 for steam) to amounts reflected in rates, with recovery/refund from or to customers via surcharge/sur-credit. CECONY's surcharge recoveries for late payment charges and write-offs of accounts receivable balances will, collectively, be subject to separate annual caps for electric and gas that produce no more than a half percent (0.5 percent) total customer bill impact per commodity (estimated for electric to be $57.3 million, $60.3 million, $62.6 million for 2023, 2024 and 2025, respectively, and for gas to be $14.8 million, $15.9 million and $16.8 million for 2023, 2024 and 2025, respectively). CECONY's surcharge recoveries for late payment charges and write-offs of accounts receivables for steam will each be subject to an annual cap that produces no more than half percent (0.5 percent) total customer bill impact (estimated to be $2.5 million, $3.0 million and $3.5 million for 2024, 2025 and 2026, respectively). Amounts in excess of the surcharge caps will be deferred as a regulatory asset for recovery in CECONY’s next base rate cases. O&R’s 2022 - 2024 rate plans include reconciliation of late payment charges to amounts reflected in rates for years 2022 through 2024, with full recovery/refund via surcharge/sur-credit once the annual variance equals or exceeds 5 basis points of return on equity and reconciliation of write-offs of customer accounts receivable balances to amounts reflected in rates from January 1, 2020 through December 31, 2024, with full recovery/refund via surcharge/sur-credit once the annual variance equals or exceeds 5 basis points of return on equity. Although these regulatory mechanisms are in place, a continued slower recovery in cash of outstanding customer accounts receivable balances has impacted the Companies’ l…

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Current wording

At September 30, 2024, CECONY’s and O&R’s customer accounts receivables balances of $2,904 million and $123 million, respectively, included aged accounts receivables (balances outstanding in excess of 60 days) of $1,654 million and $34 million, respectively. In comparison, CECONY’s and O&R’s customer accounts receivable balances at February 28, 2020 were $1,322 million and $89 million, respectively, including aged accounts receivables (balances outstanding in excess of 60 days) of $408 million and $15 million, respectively. Prior to the start of the COVID-19 pandemic, the Utilities’ practice was to write off customer accounts receivables as uncollectible 90 days after the account is disconnected for non-payment or the account is closed during the collection process. In general, the Utilities suspended collection activities and service disconnections during the COVID-19 pandemic and have since resumed such activities. CECONY’s rate plans include reconciliation of late payment charges (from January 1, 2023 through December 31, 2025 for electric and gas and from January 1, 2020 through October 31, 2026 for steam) and write-offs of customer accounts receivable balances (from January 1, 2020 through December 31, 2025 for electric and gas and from January 1, 2020 through October 31, 2026 for steam) to amounts reflected in rates, with recovery/refund from or to customers via surcharge/sur-credit. CECONY's surcharge recoveries for late payment charges and write-offs of accounts receivable balances will, collectively, be subject to separate annual caps for electric and gas that produce no more than a half percent (0.5 percent) total customer bill impact per commodity (estimated for electric to be $57.3 million, $60.3 million, $62.6 million for 2023, 2024 and 2025, respectively, and for gas to be $14.8 million, $15.9 million and $16.8 million for 2023, 2024 and 2025, respectively). CECONY's surcharge recoveries for late payment charges and write-offs of accounts receivables for steam will each be subject to an annual cap that produces no more than half percent (0.5 percent) total customer bill impact (estimated to be $2.5 million, $3.0 million and $3.5 million for 2024, 2025 and 2026, respectively). Amounts in excess of the surcharge caps will be deferred as a regulatory asset for recovery in CECONY’s next base rate cases. O&R’s 2022 - 2024 rate plans include reconciliation of late payment charges to amounts reflected in rates for years 2022 through 2024, with full recovery/refund via surcharge/sur-credit once the annual variance equals or exceeds 5 basis points of return on equity and reconciliation of write-offs of customer accounts receivable balances to amounts reflected in rates from January 1, 2020 through December 31, 2024, with full recovery/refund via surcharge/sur-credit once the annual variance equals or exceeds 5 basis points of return on equity. Although these regulatory mechanisms are in place, a continued increase in accounts receivable bala…

Excerpt shortened here; the source contains the full paragraph.

Previous wording

The success of the Companies’ efforts to meet federal, state and city clean energy policy goals and the impact of energy consumers' efforts to meet such goals on CECONY’s electric, gas and steam businesses and O&R’s electric and gas businesses may impact the Companies’ future financial condition. The Utilities expect electric usage to increase and gas and steam usage to decrease in their service territories as federal, state and local laws and policies are enacted and implemented that aim to reduce the carbon intensity of the energy that is consumed in their respective jurisdictions. The Utilities’ and their regulators’ efforts to maintain electric reliability in their service territories as electric usage increases may also impact the Companies’ future financial condition. The long-term future of the Utilities’ gas businesses depends upon the role that natural gas or other gaseous fuels will play in facilitating New York State’s and New York City’s climate goals. In addition, the impact and costs of climate change on the Utilities’ systems and the success of the Utilities’ efforts to maintain system reliability and manage service interruptions resulting from severe weather may impact the Companies’ future financial condition, results of operations and liquidity.

Current wording

Thesuccess of the Companies’ efforts to meet federal, state and city clean energy policy goals and the impact of energy consumers' efforts to meet such goals on CECONY’s electric, gas and steam businesses and O&R’s electric and gas businesses may impact the Companies’ future financial condition. The Utilities expect electric usage to increase and gas and steam usage to decrease in their service territories as federal, state and local laws and policies are enacted and implemented that aim to reduce the carbon intensity of the energy that is consumed in their respective jurisdictions. The Utilities’ and their regulators’ efforts to maintain electric reliability in their service territories as electric usage increases may also impact the Companies’ future financial condition. The long-term future of the Utilities’ gas businesses depends upon the role that natural gas or other gaseous fuels will play in facilitating New York State’s and New York City’s climate goals. In addition, the impact and costs of climate change on the Utilities’ systems and the success of the Utilities’ efforts to maintain system reliability and manage service interruptions resulting from severe weather may impact the Companies’ future financial condition, results of operations and liquidity.

Previous wording

Con Edison Transmission, through its New York Transco partnership and jointly with the New York Power Authority, is developing the Propel NY Energy transmission project that will deliver offshore wind energy from Long Island to New York City, Westchester County and the rest of New York State's high voltage power grid. Con Edison Transmission is also participating in competitive solicitations to develop additional electric projects, including a proposal submitted in April 2024 with another entity to build transmission infrastructure that will carry offshore wind power to New Jersey's electric grid and multiple proposals submitted in June 2024 through its New York Transco partnership to integrate offshore wind into New York City's energy grid. The success of Con Edison Transmission’s efforts in these competitive solicitations and to grow its electric transmission portfolio may impact Con Edison’s future capital requirements.

Current wording

Con Edison Transmission, through its New York Transco partnership and jointly NYPA, is developing the Propel NY Energy transmission project that will deliver offshore wind energy from Long Island to New York City, Westchester County and the rest of New York State's high voltage power grid. Con Edison Transmission is also participating in competitive solicitations to develop additional electric projects, including a proposal submitted in April 2024 with another entity to build transmission infrastructure that will carry offshore wind power to New Jersey's electric grid and multiple proposals submitted in June 2024 through its New York Transco partnership to integrate electricity produced from offshore wind into New York City's energy grid. The success of Con Edison Transmission’s efforts in these competitive solicitations and to grow its electric transmission portfolio may impact Con Edison’s future capital requirements.

Previous wording

CECONY operates the largest steam distribution system in the United States by producing and delivering approximately 15,444 MMlb of steam annually to approximately 1,520 customers in parts of Manhattan.

Current wording

CECONY operates the largest steam distribution system in the United States by producing and delivering approximately 15,444 MMlb of steam annually to approximately 1,510 customers in parts of Manhattan.

Previous wording

In June 2024, CECONY reached a four-year collective bargaining agreement with its largest union covering approximately 7,300 employees (which is subject to ratification by the employees).

Current wording

In June 2024, CECONY reached a collective bargaining agreement with its largest union covering approximately 7,300 employees. The union subsequently ratified the four-year agreement with an effective date of June 23, 2024.

Previous wording

(a)Other includes the parent company, Con Edison’s tax equity investments, the deferred project held for sale and consolidation adjustments. Net income for common stock for thesix months ended June 30, 2024 includes $(22) million (after-tax) for an adjustment related to the sale of the Clean Energy Businesses. See Note Q and Note R to the Second Quarter Financial Statements.

Current wording

(a)Other includes the parent company, Con Edison’s tax equity investments, the deferred project held for sale and consolidation adjustments. Net income for common stock for thenine months ended September 30, 2024 includes $(22) million (after-tax) foran adjustment related to the sale of the Clean Energy Businesses. See Note R and Note S to the Third Quarter Financial Statements.

Previous wording

(a)Net income for common stock and earnings per share from the Clean Energy Businesses for thethree and six months ended June 30, 2023 included $(9) million or $(0.03) a share net after-tax mark-to-market effects. Net income for common stock and earnings per share from the Clean Energy Businesses for thethree and six months ended June 30, 2023 also included $2 million or $0.01 a share (after-tax) net of the effects of HLBV accounting for tax equity investments in certain renewable electric projects. Depreciation and amortization expenses on their assets of $31 million or $0.09 a share (after-tax) were not recorded for thethree and six months ended June 30, 2023.

Current wording

(a)Net income for common stock from the Clean Energy Businesses for the nine months ended September 30, 2023 included $(9) million or $(0.03) a share net after-tax mark-to-market effects. Net income for common stock and earnings per share from the Clean Energy Businesses for the nine months ended September 30, 2023 also includes $2 million or $0.01 a share (after-tax) net of the effects of HLBV accounting for tax equity investments in certain renewable electric projects. Depreciation and amortization expenses on their assets of $31 million or $0.09 a share (after-tax) were not recorded for the nine months ended September 30, 2023.

Previous wording

(b) Other includes the parent company, Con Edison’s tax equity investments, the deferred project held for sale and consolidation adjustments. Net income for common stock and earnings per share for the six months ended June 30, 2024 includes $(22) million (after-tax) or $(0.06) a share (after-tax) for an adjustment related to the sale of all of the stock of the Clean Energy Businesses. See Note Q and Note R to the Second Quarter Financial Statements.

Current wording

(b) Other includes the parent company, Con Edison’s tax equity investments, the deferred project held for sale and consolidation adjustments. Net income for common stock and earnings per share for the nine months ended September 30, 2024 includes $(22) million (after-tax) or $(0.07) a share (after-tax) for an adjustment related to the sale of all of the stock of the Clean Energy Businesses. See Note R and Note S to the Third Quarter Financial Statements. Net income for common stock and earnings per share for the three and nine months ended September 30, 2024 also included $2 million or $0.01 a share (after-tax) and $1 million or $0.01 a share (after-tax), respectively, net of the effects of HLBV accounting for tax equity investments in certain renewable electric projects.

Previous wording

Net income for common stock and earnings per share for the six months ended June 30, 2023 included an immaterial amount or $0.00 a share net of income tax impact on the net after-tax mark-to-market effects. Net income for common stock and earnings per share for the three and six months ended June 30, 2023 also included $(3) million or $(0.01) a share net of income tax impact on the effects of HLBV accounting for tax equity investments in certain renewable electric projects. Net income for common stock for the three and six months ended June 30, 2023 also included $(1) million or $0.00 a share and $(8) million and $(0.02) a share of transaction costs and other accruals, respectively, related to the sale of all of the stock of the Clean Energy Businesses (net of tax). Impact of the sale of the Clean Energy Businesses on the changes in state unitary tax apportionments (net of federal taxes) is $6 million or $0.02 per share and $(10) million or $(0.03) per share for the three and six months ended June 30, 2023, respectively. Depreciation and amortization expenses on the assets of the Clean Energy Businesses of $(3) million or $(0.01) a share (after-tax) were not recorded for the six months ended June 30, 2023. Net income for common stock and earnings per share for the six months ended June 30, 2023 included $13 million or $0.03 a share and $804 million (after-tax) or $2.30 a share (after-tax) for the gain on the sale of all of the stock of the Clean Energy Businesses. See Note Q and Note R to the Second Quarter Financial Statements.

Current wording

Net income for common stock and earnings per share for thenine months ended September 30, 2023 included an immaterial amount or $0.00 a share net of income tax impact on the net after-tax mark-to-market effects. Net income for common stock and earnings per share for the three and nine months ended September 30, 2023, respectively, also included $(3) million or $(0.01) a share and $(7) million or $(0.02) a share net of income tax impact on the effects of HLBV accounting for tax equity investments in certain renewable electric projects. Net income for common stock for the three and nine months ended September 30, 2023 also included $(5) million or $(0.01) a share and $(13) million and $(0.04) a share of transaction costs and other accruals, respectively, related to the sale of all of the stock of the Clean Energy Businesses (net of tax). Impact of the sale of the Clean Energy Businesses on the changes in state unitary tax apportionments (net of federal taxes) is $(7) million or $(0.02) per share and $(17) million or $(0.05) per share for the three and nine months ended September 30, 2023, respectively. Depreciation and amortization expenses on the assets of the Clean Energy Businesses of $(3) million or $(0.01) a share (after-tax) were not recorded for thenine months ended September 30, 2023. Net income for common stock and earnings per share for the three months ended September 30, 2023 included an increase in the state taxes on sale of $(19) million or $(0.05) a share. Net income for common stock and earnings per share for thenine months ended September 30, 2023 included $784 million (after-tax) or $2.25 a share (after-tax) for the gain on the sale of all of the stock of the Clean Energy Businesses. See Note R and Note S to the Third Quarter Financial Statements.

Previous wording

(c) Earnings per share on a diluted basis were$0.58 a share and $0.65 a share for the three months ended June 30, 2024 and 2023, respectively and $2.66 a share and $4.72 a share for the six months ended June 30, 2024 and 2023, respectively.

Current wording

(d) Earnings per share on a diluted basis were$1.69 a share and $1.52 a share for the three months ended September 30, 2024 and 2023, respectively and $4.35 a share and $6.24 a share for the nine months ended September 30, 2024 and 2023, respectively.

Previous wording

The following tables present the estimated effect of major factors on earnings per share and net income for common stock for the three and six months ended June 30, 2024 as compared with the 2023 period.

Current wording

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, 2024 as compared with the 2023 period.

Previous wording

The Companies’ other operations and maintenance expenses for the three and six months ended June 30, 2024 and 2023 were as follows:

Current wording

The Companies’ other operations and maintenance expenses for the three and nine months ended September 30, 2024 and 2023 were as follows:

Previous wording

(b)Other includes the impact of the NYSPSC order denying an April 2023 petition by CECONY that requested permission to capitalize costs to implement its new customer billing and information system in 2024 ($51 million).

Current wording

(b)Other includes the impact of the NYSPSC order denying an April 2023 petition by CECONY that requested permission to capitalize costs to implement its new customer billing and information system for the nine months ended September 30, 2024 ($51 million).

Previous wording

A discussion of the results of operations by principal business segment for the three and six months ended June 30, 2024 and 2023 follows. For additional business segment financial information, see Note M to the Second Quarter Financial Statements.

Current wording

A discussion of the results of operations by principal business segment for the three and nine months ended September 30, 2024 and 2023 follows. For additional business segment financial information, see Note M to the Third Quarter Financial Statements.

Previous wording

(d)After adjusting for variations, primarily weather and billing days, electric delivery volumes in CECONY’s service area decreased 1.0 percent in the three months ended June 30, 2024 compared with the 2023 period.

Current wording

(d)After adjusting for variations, primarily weather and billing days, electric delivery volumes in CECONY’s service area increased 1.6 percent in the three months ended September 30, 2024 compared with the 2023 period.

Previous wording

Operating revenues increased $226 million in the three months ended June 30, 2024 compared with the 2023 period primarily due to an increase in revenues from the electric rate plan ($132 million), an increase in purchased power expenses ($47 million) and a change in incentives earned under the earnings adjustment mechanisms ($10 million).

Current wording

Operating revenues increased $153 million in the three months ended September 30, 2024 compared with the 2023 period primarily due to an increase in revenues from the electric rate plan ($168 million), offset in part by lower fuel expenses ($6 million).

Previous wording

Purchased power expenses increased $9 million in the six months ended June 30, 2024 compared with the 2023 period due to higher purchased volumes ($11 million), offset in part by lower unit costs ($2 million).

Current wording

Purchased power expenses decreased $76 million in the three months ended September 30, 2024 compared with the 2023 period due to lower purchased volumes ($11 million) and lower unit costs ($65 million).

Previous wording

Fuel expenses decreased $7 million in the three months ended June 30, 2024 compared with the 2023 period due to lower unit costs ($4 million) and lower purchased volumes from the company's electric generating facilities ($3 million).

Current wording

Fuel expenses decreased $6 million in the three months ended September 30, 2024 compared with the 2023 period due to lower unit costs ($5 million) and lower purchased volumes from the company's electric generating facilities ($1 million).

Previous wording

(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.

Current wording

(a)Revenues from gas sales 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.

Previous wording

(b)After adjusting for variations, primarily billing days, firm gas sales and transportation volumes in CECONY’s service area increased 12.1 percent in the three months ended June 30, 2024 compared with the 2023 period.

Current wording

(b)After adjusting for variations, primarily billing days, firm gas sales and transportation volumes in CECONY’s service area decreased 7.7 percent in the three months ended September 30, 2024 compared with the 2023 period.

Previous wording

(c)Includes 129 thousand and 745 thousand of Dt for the 2024 and 2023 periods, respectively, that are also reflected in firm transportation and other.

Current wording

(c)Incl udes 725 thousand and 1,819 thousand of Dt for the 2024 and 2023 periods, respectively, that are also reflected in firm transportation and other.

Previous wording

(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 CECONY’s rate plan.

Current wording

(d)Other gas 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 CECONY’s rate plan.

Previous wording

Operating revenues increased $19 million in the three months ended June 30, 2024 compared with the 2023 period primarily due to the benefit from the new steam rate plan ($16 million) and higher fuel expense ($4 million), offset in part by lower purchased power ($1 million).

Current wording

Operating revenues increased $19 million in the three months ended September 30, 2024 compared with the 2023 period primarily due to an increase in gas revenues under the company's gas rate plan ($19 million).

Previous wording

Gas purchased for resale decreased $28 million in the six months ended June 30, 2024 compared with the 2023 period due to lower unit costs ($32 million), offset in part by higher purchased volumes ($4 million).

Current wording

Gas purchased for resale decreased $3 million in the three months ended September 30, 2024 compared with the 2023 period due to lower unit costs ($7 million), offset in part by higher purchased volumes ($4 million).

Previous wording

Taxes, other than income taxes increased $32 million in the six months ended June 30, 2024 compared with the 2023 period primarily due to a higher property taxes ($27 million) and higher deferral of under-collected property taxes ($8 million), offset in part by lower state and local taxes ($4 million).

Current wording

Taxes, other than income taxes increased $14 million in the three months ended September 30, 2024 compared with the 2023 period primarily due to higher property taxes ($11 million) and lower deferral of under-collected property taxes ($4 million), offset in part by lower state and local revenue taxes ($2 million).

Previous wording

(b)After adjusting for variations, primarily weather prior to November 1, 2023, and billing days, steam sales and deliveries in the company's service area decreased 4.7 percent in the three months ended June 30, 2024 compared with the 2023 period.

Current wording

(b)After adjusting for variations, primarily weather prior to November 1, 2023, and billing days, steam sales and deliveries in the company's service area decreased 3.0 percent in the three months ended September 30, 2024 compared with the 2023 period.

Previous wording

Other operations and maintenance expenses decreased $11 million in the six months ended June 30, 2024 compared with the 2023 period primarily due to lower costs for pension and other postretirement benefits, reflecting reconciliation to the rate plan level ($30 million), offset in part by the impact of the NYSPSC order denying an April 2023 petition by CECONY that requested permission to capitalize costs to implement its new customer billing and information system in 2024 ($6 million), higher steam operations maintenance activities ($6 million) and an increase in municipal infrastructure support ($4 million).

Current wording

Other operations and maintenance expenses decreased $9 million in the three months ended September 30, 2024 compared with the 2023 period primarily due to lower costs for pension and other postretirement benefits, reflecting reconciliation to the rate plan level ($15 million), offset in part by an increase in the total sur-credits for assessments and fees that are collected in revenues from customers municipal infrastructure support ($1 million) and higher stock-based compensation ($1 million).

Previous wording

At$759 million, taxes other than income taxes remain one of CECONY’s largest operating expenses forthe three months ended June 30, 2024. The principal components of, and variations in, taxes other than income taxes were:

Current wording

At$831 million, taxes other than income taxes remain one of CECONY’s largest operating expenses forthe three months ended September 30, 2024. The principal components of, and variations in, taxes other than income taxes were:

Previous wording

Net interest expense increased $46 million in the three months ended June 30, 2024 compared with the 2023 period primarily due to higher interest on long-term debt ($33 million) and short-term debt ($7 million) and an increase in the carrying charges and interest on regulatory liability balances ($4 million).

Current wording

Net interest expense increased $46 million in the three months ended September 30, 2024 compared with the 2023 period primarily due to higher interest on long-term debt ($41 million) and an increase in the carrying charges and interest on regulatory liability balances ($2 million).

Previous wording

(d)After adjusting for weather and other variations, electric delivery volumes in O&R’s service area decreased 6.2 percent in the three months ended June 30, 2024 compared with the 2023 period.

Current wording

(d)After adjusting for weather and other variations, electric delivery volumes in O&R’s service area increased 7.7 percent in the three months ended September 30, 2024 compared with the 2023 period.

Previous wording

Purchased power expenses increased $47 million in the three months ended June 30, 2024 compared with the 2023 period due to higher purchased volumes ($72 million), offset in part by lower unit costs ($25 million).

Current wording

Operating revenues increased $47 million in the three months ended September 30, 2024 compared with the 2023 period primarily due to higher purchased power expenses ($24 million) and higher revenues from the New York electric rate plan($17 million).

Previous wording

Purchased power expense increased $15 million in the three months ended June 30, 2024 compared with the 2023 period primarily due to higher purchased volumes ($9 million) and higher unit costs ($6 million).

Current wording

Purchased power expense increased $24 million in the three months ended September 30, 2024 compared with the 2023 period due to higher purchased volumes ($19 million) and higher unit costs ($5 million).

Previous wording

Other operations and maintenance expenses increased $4 million in the three months ended June 30, 2024 compared with the 2023 period primarily due to higher non-deferred storm costs.

Current wording

Other operations and maintenance expenses increased $7 million in the three months ended September 30, 2024 compared with the 2023 period primarily due to higher costs to comply with the New Jersey Clean Energy Act ($2 million), higher regulatory amortizations ($2 million), higher non-deferred storm costs ($1 million) and higher tree trimming costs ($1 million).

Previous wording

(b)After adjusting for weather and other variations, firm sales and transportation volumes in O&R's service area decreased 0.2 percent in the three months ended June 30, 2024 compared with the 2023 period.

Current wording

(b)After adjusting for weather and other variations, firm sales and transportation volumes in O&R's service area decreased 2.4 percent in the three months ended September 30, 2024 compared with the 2023 period.

Previous wording

Operating revenues increased $7 million in the three months ended June 30, 2024 compared with the 2023 period primarily due to an increase in gas revenues under the company's gas rate plan ($52 million), offset in part by lower gas purchased for resale ($34 million), a change in incentives earned under the earnings adjustment mechanisms ($5 million) and higher interest accrual on net plant reconciliation ($3 million).

Current wording

Operating revenues increased $1 million in the three months ended September 30, 2024 compared with the 2023 period primarily due to a change in incentives earned under the earnings adjustment mechanisms ($3 million), offset in part by lower gas purchased for resale ($4 million).