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, 2025 (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, 2025 (File Nos.1-14514 and 1-01217, the Form 10-K) and the MD&A in Part 1, Item 2 of the Companies'

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 Transmis sion, a regulated company primarily under the oversight of the Federal Energy Regulatory Commission (FERC), develops and invests in electric transmission projects and owns interests in both electric and gas assets. During the first quarter of 2026, Con Edison Transmission completed the sale of its approximately 6.6 percent equity interest in Mountain Valley Pipeline, LLC (MVP). In April 2026, CECONY and Con Edison Transmission entered into an agreement to sell their interests in Honeoye Storage Corporation (Honeoye) for $5 million in aggregate, of which approximately $1.5 million was attributed to CECONY, before certain closing adjustments and expenses. The closing is expected to occur following approval by the NYSPSC. 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 Transmis sion, a regulated company primarily under the oversight of the Federal Energy Regulatory Commission (FERC), develops and invests in electric transmission projects and owns interests in electric assets. During the first quarter of 2026, Con Edison Transmission completed the sale of its approximately 6.6 percent equity interest in Mountain Valley Pipeline, LLC (MVP). In April 2026, CECONY and Con Edison Transmission entered into an agreement to sell their interests in Honeoye Storage Corporation (Honeoye) for $5 million in aggregate, of which approximately $1.5 million was attributed to CECONY, before certain closing adjustments and expenses. The closing is expected to occur following approval by the NYSPSC. 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

At March 31, 2026, CECONY’s and O&R’s customer accounts receivables balances of $3,120 million and $162 million, respectively, included aged accounts receivables (balances outstanding in excess of 60 days) of $1,352 million and $28 million, respectively. At December 31, 2025, CECONY’s and O&R’s customer accounts receivables balances of $2,970 million and $120 million, respectively, included aged accounts receivables (balances outstanding in excess of 60 days) of $1,427 million and $27 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, 2026, CECONY’s and O&R’s customer accounts receivables balances of $2,898 million and $119 million, respectively, included aged accounts receivables (balances outstanding in excess of 60 days) of $1,385 million and $31 million, respectively. At December 31, 2025, CECONY’s and O&R’s customer accounts receivables balances of $2,970 million and $120 million, respectively, included aged accounts receivables (balances outstanding in excess of 60 days) of $1,427 million and $27 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

Most of the electricity sold by CECONY to its full-service customers in 2025 was purchased through the wholesale electricity market administered by the NYISO. The company expects that resources will again be adequate to meet the requirements of its customers in 2026. See "Electric Reliability Needs," below. While supply margins are narrow in New York City until the Champlain Hudson Power Express transmission line enters the NYISO’s energy and capacity markets, existing resources are projected to be sufficient to cover the supply requirement. The company plans to meet its continuing obligation to supply electricity to its full-service customers through a combination of electricity purchased under contract, purchased through the NYISO’s wholesale electricity market, or generated from its electricity generating facilities.

Current wording

Most of the electricity sold by CECONY to its full-service customers in 2025 was purchased through the wholesale electricity market administered by the New York Independent System Operator (NYISO). The company expects that resources will again be adequate to meet the requirements of its customers in 2026. See "Electric Reliability Needs," below. While supply margins are narrow in New York City pending the demonstration of planned power capability by the Champlain Hudson Power Express transmission line that entered commercial operation in May 2026, the NYISO’s energy and capacity markets and existing resources are projected to be sufficient to cover the supply requirement. The company plans to meet its continuing obligation to supply electricity to its full-service customers through a combination of electricity purchased under contract, purchased through the NYISO’s wholesale electricity market, or generated from its electricity generating facilities.

Previous wording

CECONY and O&R monitor the adequacy of the electric capacity resources and related developments in their service areas and work with other parties on long-term resource adequacy and transmission security within the framework of the New York Independent System Operator (NYISO) reliability planning process. In April 2026, the NYISO issued its 2026 Quarter 1 Short-Term Assessment of Reliability that, among other things, continued to identify reliability needs in New York City beginning in the summer of 2026 and continuing through 2030. The need is primarily driven by the deactivation notices of certain generation, in combination with forecasted increases in peak demand under expected weather conditions, aging generation and the uncertainty as to whether certain planned projects will be completed and energized within the scheduled time period. The NYISO evaluated both market-based and regulated solutions and determined that certain existing generation resources should remain in service until May 1, 2029 to maintain system reliability. Longer-term reliability is dependent on the timely completion of planned transmission and generation projects and the addition of new resources. CECONY will continue to monitor reliability assessments, regulatory developments and the progress of planned transmission and generation projects.

Current wording

CECONY and O&R monitor the adequacy of the electric capacity resources and related developments in their service areas and work with other parties on long-term resource adequacy and transmission security within the framework of the NYISO reliability planning process.

Previous wording

There has been heightened legislative activity and public policy discussions regarding energy affordability. Substantial investments are needed to support an increasingly decarbonized electric grid that the Utilities, regulators and stakeholders must balance with the need for affordable rates. While the Companies continue to monitor energy affordability concerns, they are unable to predict additional legislative, executive, or regulatory measures that may result from energy affordability concerns.

Current wording

There has been heightened legislative activity and public policy discussions regarding energy affordability. Substantial investments are needed to support an increasingly decarbonized electric grid that the Utilities, regulators and stakeholders must balance with the need for affordable rates. While the Companies continue to monitor energy affordability concerns, they are unable to predict additional legislative, executive, or regulatory measures that may result from energy affordability concerns. See “State Utility Regulation,” below.

Previous wording

In March 2026, the FERC issued an order regarding CECONY’s and other parties’ longstanding dispute with PJM Interconnection LLC (PJM) regarding PJM’s cost-allocation methodology that assigned disproportionate costs from regional transmission expansion plan projects to CECONY and other New York-connected entities. The FERC directed PJM to change one element of the cost allocation methodology that would result in refunds to CECONY that would ultimately be credited to CECONY’s electric customers and initiated a proceeding to review the applicability of the methodology generally. The order is subject to rehearing and potential appeal. CECONY is unable to estimate the amount of any refund it could receive.

Current wording

In March 2026, the FERC issued an order regarding CECONY’s and other parties’ longstanding dispute with PJM Interconnection LLC (PJM) regarding PJM’s cost-allocation methodology that assigned disproportionate costs from regional transmission expansion plan projects to CECONY and other New York-connected entities. The FERC directed PJM to change one element of the cost allocation methodology that would result in refunds to CECONY that would ultimately be credited to CECONY’s electric customers and initiated a proceeding to review the applicability of the methodology generally. PJM and the PJM transmission owners have sought rehearing of the order and filed a petition for its review at the D.C. Circuit Court. In addition, FERC has extended the deadline for PJM to recalculate the cost allocations until further FERC order. CECONY is unable to estimate the amount of any refund it could receive.

Previous wording

CECONY delivers gas to approximately 1.1 million customers in Manhattan, the Bronx, parts of Queens and most of Westchester County.

Current wording

CECONY delivers gas to approximately 1.0 million customers in Manhattan, the Bronx, parts of Queens and most of Westchester County.

Previous wording

CECONY operates the largest steam distribution system in the United States by producing and delivering approximately 16,975 MMlb of steam annually to approximately 1,485 customers in parts of Manhattan.

Current wording

CECONY operates the largest steam distribution system in the United States by producing and delivering approximately 16,975 MMlb of steam annually to approximately 1,470 customers in parts of Manhattan.

Previous wording

O&R and its utility subsidiary, Rockland Electric Company (RECO) (together referred to herein as O&R) provide electric service to approxima tely 0.3 million customers in southeastern New York and northern New Jersey an approximately 1,300 square mile service area.

Current wording

O&R and its utility subsidiary, Rockland Electric Company (RECO) (together referred to herein as O&R) provide electric service to approximately 0.3 million customers in southeastern New York and northern New Jersey, an approximately 1,300 square mile service area.

Previous wording

(a)Other includes the parent company, Con Edison’s tax equity investments and consolidation adjustments. See Note Q to the First Quarter Financial Statements.

Current wording

(a)Other includes the parent company, Con Edison’s tax equity investments and consolidation adjustments. See Note Q to the Second Quarter Financial Statements.

Previous wording

On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was signed into law, containing a broad range of tax reform provisions, including extending and modifying certain key provisions of the federal Tax Cuts and Jobs Act of 2017, as enacted on December 22, 2017 (TCJA) and expanding certain incentives under the federal Inflation Reduction Act, as enacted on August 16, 2022 (IRA) while accelerating the phase-out of solar and wind credits. The Companies have assessed the potential impacts of the OBBBA and any such assessments may be impacted by future guidance to be issued by the Department of Treasury. However, based on management’s assessment, the provisions in the OBBBA are not expected to have a material impact on the Companies’ financial position, results of operations or liquidity.

Current wording

On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was signed into law, containing a broad range of tax reform provisions, including extending and modifying certain key provisions of the federal Tax Cuts and Jobs Act of 2017, as enacted on December 22, 2017 and expanding certain incentives under the federal Inflation Reduction Act (IRA), as enacted on August 16, 2022 while accelerating the phase-out of solar and wind credits. The Companies have assessed the potential impacts of the OBBBA and any such assessments may be impacted by future guidance to be issued by the Department of Treasury. However, based on management’s assessment, the provisions in the OBBBA have not had, and are not expected to have, a material impact on the Companies’ financial position, results of operations or liquidity.

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 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.

Current wording

On August 16, 2022, the 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

At March 31, 2026, Con Edison recorded a CAMT liability of $53 million ($45 million of which is for CECONY)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.

Current wording

At June 30, 2026, Con Edison accrued a CAMT liabilityof $72 million ($68 million of which is for CECONY)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.

Previous wording

On February 18, 2026, the IRS and the Department of Treasury issued Notice 2026-7, that provides additional interim guidance regarding the application of the CAMT and allows the Companies to deduct certain repair expenditures as a reduction to the Companies’ modified GAAP net income. This interim guidance is retroactive to the beginning of the IRA provisions in calculating the Companies’ CAMT liability. In the three months ended March 31, 2026, Con Edison reduced its CAMT carryforward by $205 million ($213 million of which is for CECONY) and increased its general business tax credit carryforward by approximately $154 million as a result of adopting the interim guidance for the 2024 and 2025 tax years. This guidance will also reduce the Companies’ CAMT liability going forward.

Current wording

On February 18, 2026, the Internal Revenue Service and the Department of Treasury issued Notice 2026-7, which provides additional interim guidance regarding the application of the CAMT and allows the Companies to deduct certain repair expenditures as a reduction to the Companies’ modified GAAP net income. This interim guidance is retroactive to the beginning of the IRA provisions in calculating the Companies’ CAMT liability. In the six months ended June 30, 2026, Con Edison reduced its CAMT credit carryforward by $205 million ($213 million of which is for CECONY) and increased its general business tax credit carryforward by approximately $154 million as a result of adopting the interim guidance for the 2024 and 2025 tax years. This guidance will also reduce the Companies’ CAMT liability going forward. 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

In April 2021, New York passed a law that increased the corporate franchise tax rate on business income from 6.5 percent to 7.25 percent, retroactive to January 1, 2021, for taxpayers with taxable income greater than $5 million. The law also reinstated the business capital tax at 0.1875 percent, not to exceed a maximum tax liability of $5 million per taxpayer. New York requires a corporate franchise taxpayer to calculate and pay the highest amount of tax under the three alternative methods: a tax on business income; a tax on business capital; or a fixed dollar minimum. The provisions to increase the corporate franchise tax rate and reinstate a capital tax were scheduled to expire after 2023. In May 2023, New York passed a law that extended the increase in the corporate franchise tax rate from 6.5 percent to 7.25 percent for an additional three years, through tax year 2026 and extended the business capital tax through tax year 2026. New York also passed a law establishing a permanent rate of 30 percent for the metropolitan transportation business tax surcharge. Con Edison does not expect to be subject to the higher tax rate of 7.25 percent in 2026.

Current wording

In April 2021, New York passed a law that increased the corporate franchise tax rate on business income from 6.5 percent to 7.25 percent, retroactive to January 1, 2021, for taxpayers with taxable income greater than $5 million. The law also reinstated the business capital tax at 0.1875 percent, not to exceed a maximum tax liability of $5 million per taxpayer. New York requires a corporate franchise taxpayer to calculate and pay the highest amount of tax under the three alternative methods: a tax on business income; a tax on business capital; or a fixed dollar minimum. The provisions to increase the corporate franchise tax rate and reinstate a capital tax were scheduled to expire after 2023. In May 2023, New York passed a law that extended the increase in the corporate franchise tax rate from 6.5 percent to 7.25 percent for an additional three years, through tax year 2026 and extended the business capital tax through tax year 2026. New York also passed a law establishing a permanent rate of 30 percent for the metropolitan transportation business tax surcharge. In May 2026, New York passed a law that extended the increase in the corporate franchise tax rate from 6.5 percent to 7.25 percent for an additional three years, through tax year 2029 and extended the business capital tax through tax year 2029. Con Edison does not expect to be subject to the higher tax rate of 7.25 percent in 2026.

Previous wording

Net income for common stock and earnings per share for the three months ended March 31, 2026 and 2025 were as follows:

Current wording

Net income for common stock and earnings per share for the three and six months ended June 30, 2026 and 2025 were as follows:

Previous wording

(a)Net income for common stock and earnings per share for the three months ended March 31, 2026 includes $134 million or $0.37 a share (after-tax) for the gain on the sale of Con Edison's equity interest in MVP. Net income for common stock and earnings per share for the three months ended March 31, 2026 includes $2 million or $0.01 a share (after-tax) for accretion of the basis difference of Con Edison's equity interest in MVP. Net income for common stock and earnings per share for the three months ended March 31, 2026 includes $(2) million or $(0.01) a share (after-tax) for the transaction costs associated with the strategic alternatives review of Con Edison's equity interests in MVP and Honeoye. 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 interest in MVP. See “Investment in Mountain Valley Pipeline, LLC (MVP)” in Note A to the First Quarter Financial Statements.

Current wording

(a)Net income for common stock and earnings per share for the six months ended June 30, 2026 includes $134 million or $0.37 a share (after-tax) for the gain on the sale of Con Edison's equity interest in MVP, $2 million or $0.01 a share (after-tax) for accretion of the basis difference of Con Edison's equity interest in MVP, and $(3) million or $(0.01) a share (after-tax) for the transaction costs associated with the strategic alternatives review of Con Edison's equity interests in MVP and Honeoye. 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 interest in MVP. See “Investment in Mountain Valley Pipeline, LLC (MVP)” in Note A to the Second Quarter Financial Statements.

Previous wording

(c) Earnings per share on a diluted basis were $2.54 a share and $2.25 a share for the three months ended March 31, 2026 and 2025.

Current wording

(c)Earnings per share on a diluted basis were $0.83 a share and $0.68 a share for the three months ended June 30, 2026 and 2025, respectively, and $3.36 a share and $2.92 a share for the six months ended June 30, 2026 and 2025, 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, 2026 as compared with the 2025 period.

Current wording

The following table presents 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, 2026 as compared with the 2025 period.

Previous wording

The Companies’ other operations and maintenance expenses for the three months ended March 31, 2026 and 2025 were as follows:

Current wording

The Companies’ other operations and maintenance expenses for the three and six months ended June 30, 2026 and 2025 were as follows:

Previous wording

(a)Includes Demand Side Management, System Benefit Charges and Public Service Law 18A assessments that are collected in revenues.

Current wording

(b)Includes Demand Side Management, System Benefit Charges and Public Service Law 18A assessments that are collected in revenues.

Previous wording

A discussion of the results of operations by principal business segment for the three months ended March 31, 2026 and 2025 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, 2026 and 2025 follows. For additional business segment financial information, see Note M to the Second Quarter Financial Statements.

Previous wording

(d)After adjusting for variations, primarily weather and billing days, electric delivery volumes in CECONY’s service area decreased 0.1 percentin the three months ended March 31, 2026 compared with the 2025 period.

Current wording

(d)After adjusting for variations, primarily weather and billing days, electric delivery volumes in CECONY’s service area increased 0.9 percentin the three months ended June 30, 2026 compared with the 2025 period.

Previous wording

Operating revenues increased $72 million in the three months ended March 31, 2026 compared with the 2025 period primarily due to higher unbilled revenue ($30 million), an increase in other revenue ($20 million) and an increase in revenues from the electric rate plan ($14 million).

Current wording

Operating revenues increased $353 million in the three months ended June 30, 2026 compared with the 2025 period primarily due to higher purchased power expenses ($185 million), amortization of deferred costs ($45 million), higher unbilled revenue ($44 million), an increase in revenues from the electric rate plan ($34 million), and higher fuel expenses ($26 million).

Previous wording

Fuel costs increased $29 million in the three months ended March 31, 2026 compared with the 2025 period due to higher unit costs ($15 million) and higher purchased volumes from the company's electric generating facilities ($14 million).

Current wording

Fuel costs increased $26 million in the three months ended June 30, 2026 compared with the 2025 period due to higher unit costs ($16 million) and higher purchased volumes from the company's electric generating facilities ($10 million).

Previous wording

Other operations and maintenance expenses decreased $10 million in the three months ended March 31, 2026 compared with the 2025 period primarily due to lower costs for pension and other postretirement benefits, reflecting reconciliation to the rate plan level ($17 million) and lower total surcredits for assessments and fees that are collected in revenues from customers ($8 million), offset in part by higher electric operations maintenance activities ($14 million).

Current wording

Other operations and maintenance expenses decreased $26 million in the three months ended June 30, 2026 compared with the 2025 period primarily due to lower costs for pension and other postretirement benefits, reflecting reconciliation to the rate plan level ($18 million), lower total surcredits for assessments and fees that are collected in revenues from customers ($18 million), and lower health care costs ($2 million), offset in part by higher costs for injuries and damages ($8 million) and an increase in stock-based compensation ($6 million).

Previous wording

Taxes, other than income taxes increased $40 million in the three months ended March 31, 2026 compared with the 2025 period primarily due to higher property taxes ($44 million) and higher state and local revenue taxes ($6 million), offset in part by higher deferral of under-collected property taxes ($9 million).

Current wording

Taxes, other than income taxes increased $59 million in the three months ended June 30, 2026 compared with the 2025 period primarily due to higher property taxes ($37 million) and higher state and local revenue taxes ($23 million), offset in part by lower deferral of over-collected property taxes ($2 million).

Previous wording

(b)After adjusting for variations, primarily billing days, firm gas sales and transporta tion volumes in CECONY’s service area decreased (3.2)percent in the three months ended March 31, 2026 compared with the 2025 period.

Current wording

(b)After adjusting for variations, primarily weather, billing days, firm gas sales and transporta tion volumes in CECONY’s service area decreased 2.9 percent in the three months ended June 30, 2026 compared with the 2025 period.

Previous wording

Taxes, other than income taxes increased $24 million in the three months ended March 31, 2026 compared with the 2025 period primarily due to higher deferral of over-collected property taxes ($9 million), higher property taxes ($6 million), higher state and local revenue taxes ($5 million) and higher payroll taxes ($2 million).

Current wording

Taxes, other than income taxes increased $16 million in the three months ended June 30, 2026 compared with the 2025 period primarily due to higher deferral of over-collected property taxes ($6 million), higher property taxes ($6 million), higher state and local revenue taxes ($2 million) and higher payroll taxes ($2 million).

Previous wording

(b)After adjusting for variations, primarily weather and billing days, steam sales and deliveries in the company's service area decreased (6.1) percent in the three months ended March 31, 2026 compared with the 2025 period.

Current wording

(b)After adjusting for variations, primarily weather and billing days, steam sales and deliveries in the company's service area decreased 4.3 percent in the three months ended June 30, 2026 compared with the 2025 period.

Previous wording

Taxes, other than income taxes increased $22 million in the three months ended March 31, 2026 compared with the 2025 period primarily due to a higher deferral of over-collected property taxes ($23 million).

Current wording

Taxes, other than income taxes increased $8 million in the three months ended June 30, 2026 compared with the 2025 period primarily due to a higher deferral of over-collected property taxes ($10 million), offset in part by lower property taxes ($2 million).

Previous wording

At$1,006 million, taxes other than income taxes remain one of CECONY’s largest operating expenses forthe three months ended March 31, 2026. The principal components of, and variations in, taxes other than income taxes were:

Current wording

At$952 million, taxes other than income taxes remain one of CECONY’s largest operating expenses forthe three months ended June 30, 2026. 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 2026 and 2025 were $53 million and $30 million, respectively.

Current wording

(b)Including the deferral of over-collected property taxes in 2026 and 2025 were $36 million and $22 million, respectively.

Previous wording

Net interest expense decreased $7 million in the three months ended March 31, 2026 compared with the 2025 period primarily due to lower other interest expense ($20 million), offset in part by higher interest on long-term debt resulting from increased debt balances ($12 million).

Current wording

Net interest expense increased $8 million in the three months ended June 30, 2026 compared with the 2025 period primarily due to higher interest on long-term debt resulting from increased debt balances ($17 million), offset in part by a decrease in interest expense on regulatory deferrals ($5 million) and lower other interest expense ($4 million).

Previous wording

Income taxes increased $4 million in the three months ended March 31, 2026 compared with the 2025 period primarily due to lower benefit from the amortization of MTA tax surcredit ($3 million) and lower write-offs of uncollectible accounts ($7 million), offset in part by higher amortization of excess deferred federal income taxes ($4 million) and lower income before income tax expense ($2 million).

Current wording

Income taxes increased $50 million in the three months ended June 30, 2026 compared with the 2025 period primarily due to higher income before income tax expense ($32 million), lower benefit from the amortization of MTA tax surcredit ($8 million), lower write-offs of uncollectible accounts ($8 million) and higher cost of removal ($3 million), offset in part by higher amortization of excess deferred federal income taxes ($6 million).

Previous wording

(d)After adjusting for weather and other variations, electric delivery volumes in O&R’s service area increased 1.9 percent in the three months ended March 31, 2026 compared with the 2025 period.

Current wording

(d)After adjusting for weather and other variations, electric delivery volumes in O&R’s service area increased 6.1 percent in the three months ended June 30, 2026 compared with the 2025 period.

Previous wording

Operating revenues increased $67 million in the three months ended March 31, 2026 compared with the 2025 period primarily due to higher purchased power expenses ($60 million) and higher revenues from the company's New York electric rate plan ($7 million).

Current wording

Operating revenues increased $9 million in the three months ended June 30, 2026 compared with the 2025 period primarily due to higher revenues from the company's New York electric rate plan ($6 million) and higher purchased power expenses ($2 million).