CONSOLIDATED EDISON CO OF NEW YORK 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 First 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 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.

Previous wording

This MD&A should be read in conjunction with the First 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, 2024 (File Nos.1-14514 and 1-01217, the Form 10-K).

Current 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, 2024 (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, 2025 (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 and manages, through joint ventures, both electric and gas assets while seeking to develop electric transmission projects. Con Edison Transmission is considering strategic alternatives with respect to its investment in Mountain Valley Pipeline, LLC (MVP) and both Con Edison Transmission and CECONY are considering strategic alternatives with respect to their investments in Honeoye Storage Corporation (Honeoye). See“Investments” in Note A to the First Quarter Financial Statements and“Con Edison Transmission” below.

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 and manages, through joint ventures, both electric and gas assets while seeking to develop electric transmission projects. Con Edison Transmission is considering strategic alternatives with respect to its investment in Mountain Valley Pipeline, LLC (MVP) and both Con Edison Transmission and CECONY are considering strategic alternatives with respect to their investments in Honeoye Storage Corporation (Honeoye). See“Investments” in Note A to the Second Quarter Financial Statements and“Con Edison Transmission” below.

Previous wording

In addition to the risks and uncertainties described in Item 1A and the Companies’ material contingencies described in Notes B, G and H to the First 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 risks and uncertainties described in Item 1A and 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.

Previous wording

In January 2025, as updated in April 2025, CECONY filed requests with the NYSPSC for electric and gas rate increases of $1,608 million and $349 million, respectively, effective January 2026. The filings reflect a return on common equity of 10.0 percent and a common equity ratio of 48 percent. CECONY’s future earnings will depend on the rates authorized in, and the other provisions of, its January 2026 electric and gas rate plans and CECONY’s ability to operate its businesses in a manner consistent with such rate plans. Therefore, the outcome of CECONY’s rate requests, which require approval by the NYSPSC, will impact the Companies’ future financial condition, results of operations and liquidity. See “Rate Plans” in Note B to the First Quarter Financial Statements.

Current wording

In January 2025, as updated in April 2025, CECONY filed requests with the NYSPSC for electric and gas rate increases of $1,608 million and $349 million, respectively, effective January 1, 2026. The filings reflect a return on common equity of 10 percent and a common equity ratio of 48 percent. In May 2025, the New York State Department of Public Service submitted testimony in the pending electric and gas rate case proceedings, supporting an electric rate increase of $319 million and a gas rate decrease of $45 million, reflecting, among other things, a 9.30 percent return on common equity and a common equity ratio of 48 percent. CECONY’s future earnings will depend on the rates authorized in, and the other provisions of, its January 2026 electric and gas rate plans and CECONY’s ability to operate its businesses in a manner consistent with such rate plans. Therefore, the outcome of CECONY’s rate requests, which require approval by the NYSPSC, will impact the Companies’ future financial condition, results of operations and liquidity. See “Rate Plans” in Note B to the Second Quarter Financial Statements.

Previous wording

At March 31, 2025, CECONY’s and O&R’s customer accounts receivables balances of $3,232 million and $133 million, respectively, included aged accounts receivables (balances outstanding in excess of 60 days) of $1,513 million and $26 million, respectively. At December 31, 2024, CECONY’s and O&R’s customer accounts receivables balances of $2,947 million and $113 million, respectively, included aged accounts receivables (balances outstanding in excess of 60 days) of $1,652 million and $32 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.

Current wording

At June 30, 2025, CECONY’s and O&R’s customer accounts receivables balances of $2,892 million and $116 million, respectively, included aged accounts receivables (balances outstanding in excess of 60 days) of $1,530 million and $26 million, respectively. At December 31, 2024, CECONY’s and O&R’s customer accounts receivables balances of $2,947 million and $113 million, respectively, included aged accounts receivables (balances outstanding in excess of 60 days) of $1,652 million and $32 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.

Previous wording

O&R’s rate plans include reconciliation of uncollectible expenses and late payment charges that are subject to a combined annual threshold of $0.9 million and $0.5 million for electric and gas, respectively. Once the threshold is met, O&R will defer the variance between actual uncollectible expense and late payment charge, and the level set forth in rates that is above the threshold. Recovery/refunds will be made via surcharge/sur-credit. Surcharge recovery is subject to an annual cap that produces no more than a 0.5 percent total customer bill impact per commodity. Amounts in excess of the surcharge caps will be deferred as a regulatory asset for recovery in O&R’s next base rate cases.

Current wording

O&R’s 2025 – 2027 rate plans include reconciliation of uncollectible expenses and late payment charges that are subject to a combined annual threshold of $0.9 million and $0.5 million for electric and gas, respectively. Once the threshold is met, O&R will defer the variance between actual uncollectible expense and late payment charge, and the level set forth in rates that is above the threshold. Recovery/refunds will be made via surcharge/sur-credit. Surcharge recovery is subject to an annual cap that produces no more than a 0.5 percent total customer bill impactper commodity. Amounts in excess of the surcharge caps will be deferred as a regulatory asset for recovery in O&R’s next base rate cases.

Previous wording

Although these regulatory mechanisms are in place, a continued increase in accounts receivable balances has impacted and is expected to continue to impact the Companies’ liquidity. See “Liquidity and Capital Resources,” below, and Note B and Note L to the First Quarter Financial Statements.

Current wording

Although these regulatory mechanisms are currently in place, the Utilities’ ability to effectively manage their customer accounts receivable balances, and obtain recovery in rates for their respective carrying costs and any related write-offs could have a material impact on the Companies’ businesses. In addition, a continued increase inaccounts receivable balances has impacted and is expected to continue to impact the Companies’ liquidity. See “Liquidity and Capital Resources,” below, and Note B and Note L to the Second Quarter Financial Statements.

Previous wording

In particular, CECONY, in an effort to reduce aged accounts receivables balances, plans to continue to execute on its integrated collections strategy, which includes, among other things, implementation of payment arrangements, enhanced digital and mail communications to customers regarding collections, increased field collections by hiring new field collectors and increasing collector efficiency and employing additional call center representatives to handle in-bound call volumes. O&R's collection strategy aligns with that of CECONY's in many respects.

Current wording

In particular, CECONY, in an effort to reduce aged accounts receivables balances, plans to continue to execute on its integrated collections strategy, which includes, among other things, implementation of payment arrangements, enhanced digital and mail communications to customers regarding collections, increased field collections by recently having hired additional field collectors and increasing collector efficiency and employing additional call center representatives to handle in-bound call volumes and to place outbound calls to customers regarding collections. O&R's collection strategy aligns with that of CECONY's in many respects.

Previous wording

These tariffs, if implemented, may result in increases in electric commodity prices. The Utilities do not make any margin or profit on the electricity they sell and generally recover these costs pursuant to their rate plans.

Current wording

These tariffs, if implemented, may result in increases in electric commodity prices. The Utilities do not make any margin or profit on the electricity they sell and generally recover these costs pursuant to their rate plans. See "Aged Accounts Receivable Balances," above and "Commodity Price Risk," below.

Previous wording

The Companies are monitoring these actions closely, but are unable to predict changes in regulations, regulatory guidance, legal interpretations, policy positions and implementation actions that may result from these governmental actions.

Current wording

The Companies continue to monitor these developments closely, but are unable to predict changes in regulations, regulatory guidance, legal interpretations, policy positions and implementation actions that may result from these governmental actions.

Previous wording

Beginning in January 2025, a series of executive orders and presidential memoranda were issued (collectively, Presidential Actions) designed to address areas such as environmental and energy regulations, domestic energy production and retention of domestic generation resources, among other things.

Current wording

Beginning in January 2025, a series of executive orders, presidential memoranda and proclamations were issued (collectively, Presidential Actions) designed to address areas such as tariffs, environm ental and energy regulations, domestic energy production and retention of domestic generation resources, among other things. The situation remains fluid and is subject to rapid change.

Previous wording

The Companies are monitoring these actions closely in an effort to understand any potential impact on the Companies. The Companies are unable to predict changes in regulations, regulatory guidance, legal interpretations, policy positions and implementation actions that may result from the Presidential Actions and the April 2025 Executive Order.

Current wording

Although the recently imposed or increased tariffs have not had a significant impact on the Companies’ operations or financial condition to date, the cost of materials have increased during the second quarter of 2025 across various supply chain contract portfolios. These tariffs could raise costs for the Companies in the future and could potentially disrupt the supply chain. The Companies continue to monitor these developments closely to understand any potential impact on the Companies. The Companies are unable to predict changes in regulations, regulatory guidance, legal interpretations, policy positions and implementation actions that may result from the Presidential Actions and the April 2025 Executive Order.

Previous wording

Con Edison Transmission, throughits New York Transco partnership and jointly with the New York Power Authority, is developing the Propel NY Energy transmission project, a 90-mile electric transmission project that is expected to increase high voltage transmission connections between Long Island and the rest of New York State. Con Edison Transmission is also participating in competitive solicitations to develop additional electric projects. 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. In January 2025, the President of the United States issued an executive order temporarily withdrawing all areas on the outer continental shelf from new offshore wind leasing, pending review by the new Administration, noting that nothing in this withdrawal affects rights under existing leases in the withdrawn areas, and further that with respect to such existing leases, the Secretary of the Interior, in consultation with the Attorney General as needed, shall conduct a comprehensive review of the ecological, economic, and environmental necessity of terminating or amending any existing wind energy leases. See“Federal Regulation” above.

Current wording

Con Edison Transmission, through its New York Transco partnership and jointly with the New York Power Authority (NYPA), is developing the Propel NY Energy transmission project, a 90-mile electric transmission project that is expected to increase high voltage transmission connections between Long Island and the rest of New York State. Con Edison Transmission also participates in competitive solicitations to develop additional electric projects. 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. In January 2025, the President of the United States issued an executive order temporarily withdrawing all areas on the outer continental shelf from new offshore wind leasing, pending review by the new Administration, noting that nothing in this withdrawal affects rights under existing leases in the withdrawn areas, and further that with respect to such existing leases, the Secretary of the Interior, in consultation with the Attorney General as needed, shall conduct a comprehensive review of the ecological, economic, and environmental necessity of terminating or amending any existing wind energy leases. In July 2025, the NYSPSC issued an order withdrawing the public policy transmission need (PPTN) process given actions taken by the federal government that reduced the prospects for the construction of the offshore wind resources that were anticipated to be served by the proposed transmission solutions. See “Federal Regulation,” above and “Environmental Matters – Offshore Wind,” below.

Previous wording

CECONY operates the largest steam distribution system in the United States by producing and delivering approximately 15,494 MMlb of steam annually to approxi mately 1,500 custo mers in parts of Manhattan.

Current wording

CECONY operates the largest steam distribution system in the United States by producing and delivering approximately 15,494 MMlb of steam annually to approximately 1,500 customers in parts of Manhattan.

Previous wording

On August 16, 2022, the Inflation Reduction Act (IRA) was signed into law and implemented a new corporate alternative minimum tax (CAMT) that imposed a 15 percent tax on modified GAAP net income. Under the IRA, a corporation is subject to the CAMT if its average annual adjusted financial statement income for the three taxable year period ending prior to the taxable year exceeds $1,000 million, and applies to tax years beginning after December 31, 2022. Pursuant to the IRA, corporations are entitled to a tax credit (minimum tax credit) to the extent the CAMT liability exceeds the regular tax liability. This amount can be carried forward indefinitely and used in future years when regular tax liability exceeds the CAMT liability.

Current wording

On August 16, 2022, the Inflation Reduction Act (IRA) was signed into law and implemented a new corporate alternative minimum tax (CAMT) that imposes a 15 percent tax on modified GAAP net income. Pursuant to the IRA, corporations are entitled to a tax credit (minimum tax credit) to the extent the CAMT liability exceeds the regular tax liability. This amount can be carried forward indefinitely and used in future years when regular tax liability exceeds the CAMT liability.

Previous wording

Beginning in 2024, based on the existing statue, the Companies are subject to and report the CAMT in their Consolidated Income Statements, Consolidated Statements of Cash Flows and the Consolidated Balance Sheets. The Companies’ CAMT liability did not exceed their regular tax liability for the three months ended March 31, 2025 and 2024. The Companies are continuing to assess the impacts of the IRA on their financial statements and will update estimates based on future guidance to be issued by the Department of the Treasury.

Current wording

Beginning in 2024, based on the existing statute, the Companies are subject to and report the CAMT in their Consolidated Income Statements, Consolidated Statements of Cash Flows and the Consolidated Balance Sheets. As of June 30, 2025 and 2024, Con Edison accrued a CAMT liability of $73 million ($88 million for CECONY) and $23 million ($19 million for CECONY), respectively, before the application of general business credits, with an offsetting deferred tax asset representing the minimum tax credit carryforward. The deferred tax asset related to the minimum tax credit carryforward will be realized to the extent the Companies’ consolidated deferred tax liabilities exceed the minimum tax credit carryforward. The Companies’ deferred tax liabilities are expected to exceed the minimum tax credit carryforward for the foreseeable future and thus no valuation allowance is required. The Companies are continuing to assess the impacts of the IRA on their financial statements and will update estimates based on future guidance to be issued by the Department of the Treasury.

Previous wording

Net income for common stock and earnings per share for the three months ended March 31, 2025 and 2024 were as follows:

Current wording

Net income for common stock and earnings per share for the three and six months ended June 30, 2025 and 2024 were as follows:

Previous wording

(a)Net income for common stock and earnings per share for the three months ended March 31, 2025 includes $2 million or $0.01 a share (after-tax) for accretion of the basis difference of Con Edison's equity investment in MVP. See “Investment in MVP” in Note A to the First Quarter Financial Statements.

Current wording

(a)Net income for common stock and earnings per share for the three and six months ended June 30, 2025 includes $2 million or $0.01 a share (after-tax) and $5 million or $0.02 a share (after-tax) for accretion of the basis difference of Con Edison's equity investment in MVP. See “Investment in MVP” in Note A to the Second Quarter Financial Statements.

Previous wording

(b) Other includes the parent company, Con Edison’s tax equity investments, consolidation adjustments and Broken Bow II, the deferred project that was classified as held for sale at December 31, 2024, the sale and transfer of which was completed in January 2025. Net income for common stock and earnings per share for the three months ended March 31, 2025 also included $(3) million or $(0.01) a share (after-tax) on the effects of HLBV accounting for tax equity investments in certain renewable electric projects. Net income for common stock and earnings per share for the three months ended March 31, 2024 includes $(22) million (after-tax) or $(0.07) a share (after-tax) for an adjustment related to the sale of the Clean Energy Businesses. See Note Q and Note R to the First Quarter Financial Statements.

Current wording

(b) Other includes the parent company, Con Edison’s tax equity investments, consolidation adjustments and Broken Bow II, the deferred project that was classified as held for sale at December 31, 2024, with the sale and transfer completed in January 2025. 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 to the Second Quarter Financial Statements.

Previous wording

(c) Earnings per share on a diluted basis were$2.25 a share and $2.08 a share for the three months ended March 31, 2025 and 2024, respectively.

Current wording

(c) Earnings per share on a diluted basis were$0.68 a share and $0.58 a share for the three months ended June 30, 2025 and 2024, respectively, and $2.92 a share and $2.66 a share for the six months ended June 30, 2025 and 2024, respectively.

Previous wording

The following table presents the estimated effect of major factors on earnings per share and net income for common stock for the three months ended March 31, 2025 as compared with the 2024 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 six months ended June 30, 2025 as compared with the 2024 period.

Previous wording

The Companies’ other operations and maintenance expenses for the three months ended March 31, 2025 and 2024 were as follows:

Current wording

The Companies’ other operations and maintenance expenses for the three and six months ended June 30, 2025 and 2024 were as follows:

Previous wording

A discussion of the results of operations by principal business segment for the three months ended March 31, 2025 and 2024 follows. For additional business segment financial information, see Note M to the First Quarter Financial Statements.

Current wording

A discussion of the results of operations by principal business segment for the three and six months ended June 30, 2025 and 2024 follows. For additional business segment financial information, see Note M to the Second Quarter Financial Statements.

Previous wording

Operating revenues increased $245 million in the three months ended March 31, 2025 compared with the 2024 period primarily due to an increase in revenues from the electric rate plan ($148 million), higher purchased power expenses ($53 million) and higher operating revenue primarily driven by surcharge and lower deferral activity ($23 million).

Current wording

Operating revenues increased $211 million in the three months ended June 30, 2025 compared with the 2024 period primarily due to an increase in revenues from the electric rate plan ($139 million) and higher purchased power expenses ($80 million), offset in part by lower operating revenue primarily driven by surcharge and lower deferral activity ($5 million).

Previous wording

Fuel expenses increased $8 million in the three months ended March 31, 2025 compared with the 2024 period due to higher unit costs ($18 million), offset in part by lower purchased volumes from the company's electric generating facilities ($10 million).

Current wording

Fuel expenses increased $4 million in the three months ended June 30, 2025 compared with the 2024 period due to higher unit costs ($5 million), offset in part by lower purchased volumes from the company's electric generating facilities ($1 million).

Previous wording

Depreciation and amortization expenses increased $19 million in the three months ended March 31, 2025 compared with the 2024 period primarily due to higher electric utility plant balances.

Current wording

Depreciation and amortization expenses increased $51 million in the three months ended June 30, 2025 compared with the 2024 period primarily due to higher electric utility plant balances.

Previous wording

Operating revenues increased $158 million in the three months ended March 31, 2025 compared with the 2024 period primarily due to an increase in gas revenues under the company's gas rate plan ($89 million) and higher gas purchased for resale expenses ($70 million), offset in part by higher interest accrual on net plant reconciliations ($8 million).

Current wording

Operating revenues increased $115 million in the three months ended June 30, 2025 compared with the 2024 period primarily due to higher gas purchased for resale ($91 million) and an increase in gas revenues under the company's gas rate plan ($17 million).

Previous wording

Depreciation and amortization expenses increased $4 million in the three months ended March 31, 2025 compared with the 2024 period primarily due to higher gas utility plant balances.

Current wording

Depreciation and amortization expenses increased $7 million in the three months ended June 30, 2025 compared with the 2024 period primarily due to higher gas utility plant balances.

Previous wording

Taxes, other than income taxes increased $48 million in the three months ended March 31, 2025 compared with the 2024 period primarily due to lower deferral of under-collected property taxes ($34 million), higher property taxes ($9 million) and higher state and local revenue taxes ($5 million).

Current wording

Taxes, other than income taxes increased $29 million in the three months ended June 30, 2025 compared with the 2024 period primarily due to lower deferral of under-collected property taxes ($18 million), higher property taxes ($9 million) and higher state and local revenue taxes ($3 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 4.9 percent in the three months ended March 31, 2025 compared with the 2024 period.

Current wording

(b)After adjusting for variations, primarily weather and billing days, steam sales and deliveries in the company's service area decreased 4.4 percent in the three months ended June 30, 2025 compared with the 2024 period.

Previous wording

Operating revenues increased$67 million in the three months ended March 31, 2025 compared with the 2024 period primarily due to an increase in steam revenues under the company's steam rate plan ($33 million), higher fuel expenses ($31 million) and higher purchased power expenses ($3 million).

Current wording

Operating revenues increased$18 million in the three months ended June 30, 2025 compared with the 2024 period primarily due to higher fuel expenses ($8 million), an increase in steam revenues under the company's steam rate plan ($6 million) and higher purchased power expenses ($1 million).

Previous wording

Fuel expenses increased$31 million in the three months ended March 31, 2025 compared with the 2024 period due to higher unit costs ($26 million) and higher purchased volumes from the company’s steam generating facilities ($5 million).

Current wording

Fuel expenses increased$8 million in the three months ended June 30, 2025 compared with the 2024 period due to higher unit costs ($7 million) and higher purchased volumes from the company’s steam generating facilities ($1 million).

Previous wording

At $920 million, taxes other than income taxes remain one of CECONY’s largest operating expenses forthe three months ended March 31, 2025. The principal components of, and variations in, taxes other than income taxes were:

Current wording

At $869 million, taxes other than income taxes remain one of CECONY’s largest operating expenses forthe three months ended June 30, 2025. The principal components of, and variations in, taxes other than income taxes were:

Previous wording

(b)Including the deferral of over-collected property taxes in 2025 of $30 million and the deferral of under-collected property taxes in 2024 of $20 million, respectively.

Current wording

(b)Including the deferral of over-collected property taxes in 2025 of $22 million and the deferral of under-collected property taxes in 2024 of $6 million, respectively.

Previous wording

Net interest expense increased $23 million in the three months ended March 31, 2025 compared with the 2024 period primarily due to higher interest on long-term debt resulting from increased debt balances ($34 million), offset in part by lower interest on short-term debt ($15 million).

Current wording

Net interest expense increased $17 million in the three months ended June 30, 2025 compared with the 2024 period primarily due to higher interest on long-term debt resulting from increased debt balances ($23 million), offset in part by lower other interest expense ($4 million) and an increase in AFUDC ($3 million).

Previous wording

Income taxes increased $46 million in the three months ended March 31, 2025 compared with the 2024 period primarily due to higher income before income tax expense ($26 million) and lower amortization of excess deferred federal income taxes ($39 million), offset in part by a higher benefit from the annual amortization of Metropolitan Transportation Authority (MTA) tax-surcredit ($12 million) and higher write-offs of uncollectible accounts, net of COVID-19 assistance ($7 million).

Current wording

Income taxes increased $47 million in the three months ended June 30, 2025 compared with the 2024 period primarily due to lower amortization of excess deferred federal income taxes ($41 million) and higher income before income tax expense ($22 million), offset in part by a higher benefit from the annual amortization of Metropolitan Transportation Authority (MTA) tax surcredit ($5 million) and higher write-offs of uncollectible accounts, net of COVID-19 assistance ($10 million).

Previous wording

(d)After adjusting for weather and other variations, electric delivery volumes in O&R’s service area increased 1.5 percent in the three months ended March 31, 2025 compared with the 2024 period.

Current wording

(d)After adjusting for weather and other variations, electric delivery volumes in O&R’s service area increased 4.4 percent in the three months ended June 30, 2025 compared with the 2024 period.

Previous wording

Operating revenues increased $20 million in the three months ended March 31, 2025 compared with the 2024 period primarily due to higher purchased power expenses ($16 million) and higher revenues from the company's New York electric rate plan($5 million).

Current wording

Operating revenues increased $16 million in the three months ended June 30, 2025 compared with the 2024 period primarily due to higher purchased power expenses ($12 million) and higher revenues from the company's New York electric rate plan($5 million).

Previous wording

Purchased power expense increased $16 million in the three months ended March 31, 2025 compared with the 2024 period due to higher purchased volumes ($8 million) and higher unit costs ($8 million).

Current wording

Purchased power expense increased $12 million in the three months ended June 30, 2025 compared with the 2024 period due to higher purchased volumes ($11 million) and higher unit costs ($1 million).