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

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

Previous wording

combined Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2026 (File Nos. 1-14514 and

Current wording

combined Quarterly Reports on Form 10-Q for the quarterly periods ended March 31, 2026 and June 30, 2026 (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 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.

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 owns interests in electric transmission projects. 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 October 2026, CECONY and Con Edison Transmission completed the sale of 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. See “Investments” in Note A to the Third 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 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 risks and uncertainties described in Item 1A and 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, 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.

Current wording

At September 30, 2026, CECONY’s and O&R’s customer accounts receivable balances of $2,917 million and $115 million, respectively, included aged accounts receivable (balances outstanding in excess of 60 days) of $1,345 million and $26 million, respectively. At December 31, 2025, CECONY’s and O&R’s customer accounts receivable balances of $2,970 million and $120 million, respectively, included aged accounts receivable (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 receivable (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 receivable 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

The Utilities, in an effort to reduce aged accounts receivables balances, continue to execute on their integrated collections strategy, which includes, among other things, implementation of flexible payment arrangement options, enhanced targeted digital and mail communications to customers regarding collections and an increased presence of field collectors to support in-person account resolution. The Utilities have also strengthened their credit and collection efforts to better manage incoming inquiries and have instituted additional measures to manage outbound collection calls.

Current wording

The Utilities, in an effort to reduce aged accounts receivable balances, continue to execute on their integrated collections strategy, which includes, among other things, implementation of flexible payment arrangement options, enhanced targeted digital and mail communications to customers regarding collections and an increased presence of field collectors to support in-person account resolution. The Utilities have also strengthened their credit and collection efforts to better manage incoming inquiries and have instituted additional measures to manage outbound collection calls.

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 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.

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. 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

utility rate cases and addressing affordability. Effective for base rate filings submitted by the Utilities after January 1, 2027, Chapter 58: (i) requires the Utilities to submit, in addition to their recommended proposal, a budget-constrained rate plan that limits aggregate revenue increases to the average Consumer Price Index growth over the prior three years; (ii) directs the Utilities to return revenues above the authorized return on equity (ROE), with retention of up to 0.25% over the authorized ROE if certain criteria are met; (iii) further defines non-recoverable lobbying expenses and formalizes non-recoverability of public relations and goodwill advertising expenses; (iv) extends the NYSPSC’s authority to suspend a rate case to 14 months; and (v) authorizes approval of multi-year litigated rate plans. Chapter 58 further: (i) directs the NYSPSC to develop performance-based employee compensation targets and authorizes consideration of adjustments to ROE based on affordability performance; (ii)

Current wording

In May 2026, as part of New York State’s Fiscal Year 2026-2027 Enacted Budget, the state enacted Chapter 58 of the Laws of 2026, which, among other things, amends and adds provisions to the Public Service Law governing utility rate cases and addressing affordability. Effective for base rate filings submitted by the Utilities after January 1, 2027, Chapter 58: (i) requires the Utilities to submit, in addition to their recommended proposal, a budget-constrained rate plan that limits aggregate revenue increases to the average Consumer Price Index growth over the prior three years; (ii) directs the Utilities to return revenues above the authorized return on equity (ROE), with retention of up to 0.25% over the authorized ROE if certain criteria are met; (iii) further defines non-recoverable lobbying expenses and formalizes non-recoverability of public relations and goodwill advertising expenses; (iv) extends the NYSPSC’s authority to suspend a rate case to 14 months; and (v) authorizes approval of multi-year litigated rate plans. Chapter 58 further: (i) directs the NYSPSC to develop performance-based employee compensation targets and authorizes consideration of adjustments to ROE based on affordability performance; (ii) directs the NYSPSC to establish rules limiting recovery of rate case expenses, including legal, consultant, expert and employee costs; (iii) requires affordability analyses in rate cases; and (iv) directs the NYSPSC to adopt rules for calculating a newly created Energy Affordability Index and to issue annual affordability reports. Chapter 58 also creates a temporary and independent commission to study rising utility rates, affordability and generation, including utility-owned renewable generation. The Utilities are continuing to assess the impact of the new law and the timing of their upcoming rate case filings. See “Energy Affordability,” above.

Previous wording

In April 2026, the NYSPSC adopted cybersecurity regulations for New York utilities, including CECONY and O&R, effective June 1, 2026. The regulations require the Utilities to, among other things, implement and maintain a risk‑based cybersecurity program aligned with the National Institute of Standards and Technology (NIST) Cybersecurity Framework, including governance oversight, periodic risk assessments and audits, continuous monitoring, security controls, incident response and recovery planning. The regulations also require prompt reporting of cybersecurity incidents to the NYSDPS (including cybersecurity data breaches experienced by third-party vendors), investigations following incidents and credit monitoring to customers following certain data breaches. Compliance will be phased in over specified periods set forth in the order, with incremental costs (including capital expenditures incurred to comply with the order) subject to deferral and review in future rate proceedings. The Utilities already comply with many of the requirements prescribed in the regulations, including alignment with the NIST framework, and expect to comply with all of the requirements of the regulations within the prescribed timeframe.

Current wording

In April 2026, the NYSPSC adopted cybersecurity regulations for New York utilities, including CECONY and O&R, that became effective on June 1, 2026, and provide for phased compliance periods of up to 18 months for certain requirements. The regulations require the Utilities to, among other things, implement and maintain a risk-based cybersecurity program aligned with the National Institute of Standards and Technology (NIST) Cybersecurity Framework, including governance oversight, periodic risk assessments and audits, continuous monitoring, security controls, incident response and recovery planning. The regulations also require prompt reporting of cybersecurity incidents to the NYSDPS (including cybersecurity data breaches experienced by third-party vendors), investigations following incidents and credit monitoring to customers following certain data breaches. Compliance will be phased in over specified periods set forth in the order, with incremental costs (including capital expenditures incurred to comply with the order) subject to deferral and review in future rate proceedings. The Utilities already comply with many of the requirements prescribed in the regulations, including alignment with the NIST framework, and expect to comply with all of the requirements of the regulations within the prescribed timeframe.

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 1,470 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 1,465 customers in parts of Manhattan.

Previous 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.

Current wording

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

Previous 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.

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. At September 30, 2026, Con Edison accrued a CAMT liabilityof $16 million ($15 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 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.

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 nine months ended September 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

(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.

Current wording

(a)Net income and earnings per share for the nine months ended September 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 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 and earnings per share for the three and nine months ended September 30, 2025 includes $2 million or $0.01 a share (after-tax) and $7 million or $0.02 a share (after-tax) for accretion of the basis difference of Con Edison's equity interest in MVP, respectively. See “Investment in Mountain Valley Pipeline, LLC (MVP)” in Note A to the Third 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, with the sale and transfer completed in January 2025. See Note Q to the Second Quarter Financial Statements. Net income for common stock and earnings per share for the three and six months ended June 30, 2026 includes $1 million or $0.00 a share (after-tax) for the effects of HLBV accounting for tax equity investments. Net income for common stock and earnings per share for the three months ended June 30, 2025 includes $3 million or $0.00 a share (after-tax) for the effects of HLBV accounting for tax equity investments. Net income for common stock and earnings per share for the three and six months ended June 30, 2025 includes $1 million or $0.00 a share (after-tax) for the adjustments to the gain and other impacts related to the sale of all of the stock of the Clean Energy Businesses in 2023.

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. See Note Q to the Third Quarter Financial Statements. Net income and earnings per share for the nine months ended September 30, 2025 includes $1 million (after-tax) for the adjustments to the gain and other impacts related to the sale of all of the stock of the Clean Energy Businesses in 2023.

Previous 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.

Current wording

(c) Earnings per share on a diluted basis were $2.06 a share and $1.90 a share for the three months ended September 30, 2026 and 2025, respectively, and $5.42 a share and $4.83 a share for the nine months ended September 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 and six months ended June 30, 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 the three and nine months ended September 30, 2026 as compared with the 2025 period.

Previous wording

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

Current wording

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

Previous 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.

Current wording

A discussion of the results of operations by principal business segment for the three and nine months ended September 30, 2026 and 2025 follows. For additional business segment financial information, see Note M to the Third Quarter Financial Statements.

Previous wording

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

Current wording

(a)Other includesthe parent company, Con Edison’s tax equity investments and consolidation adjustments. See Note Qto 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 increased 0.9 percentin the three months ended June 30, 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 1.7 percentin the three months ended September 30, 2026 compared with the 2025 period.

Previous 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).

Current wording

Other operations and maintenance expenses decreased $31 million in the three months ended September 30, 2026 compared with the 2025 period primarily due to lower costs for pension and other postretirement benefits ($17 million), lower health care costs ($10 million), and lower electric operations maintenance activities ($2 million).

Previous wording

Taxes, other than income taxes increased $99 million in the six months ended June 30, 2026 compared with the 2025 period primarily due to higher property taxes ($81 million), higher state and local revenue taxes ($29 million), offset in part by a lower deferral of over-collected property taxes ($11 million).

Current wording

Taxes, other than income taxes increased $50 million in the three months ended September 30, 2026 compared with the 2025 period primarily due to higher state and local revenue taxes ($29 million), higher property taxes ($20 million), and lower deferral of under-collected property taxes ($8 million), offset in part by a lower deferral of shaped customer bill impact of the electric rate plan ($6 million).

Previous wording

(a)Revenues from gas sales are subject to aweather normalization clause and arevenue 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 toarevenue 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 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.

Current wording

(b)After adjusting for variations, primarily weather, billing days, firm gas sales and transporta tion volumes in CECONY’s service area increased 1.3 percent in the three months ended September 30, 2026 compared with the 2025 period.

Previous wording

(c)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

(c)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 $100 million in the three months ended June 30, 2026 compared with the 2025 period primarily due to higher gas non-firm revenues ($37 million), an increase in revenue from the gas rate plan ($31 million), amortization of deferred costs ($17 million), and higher unbilled revenue ($11 million).

Current wording

Operating revenues increased $20 million in the three months ended September 30, 2026 compared with the 2025 period primarily due to amortization of deferred costs ($17 million), an increase in revenue from the gas rate plan ($12 million), offset in part by lower unbilled revenue ($6 million).

Previous 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.

Current wording

(b)After adjusting for variations, primarily weather and billing days, steam sales and deliveries in the company's service area decreased 7.8 percent in the three months ended September 30, 2026 compared with the 2025 period.

Previous wording

Operating revenues increased $12 million in the three months ended June 30, 2026 compared with the 2025 period primarily due to an increase in revenue from the steam rate plan ($9 million), higher fuel costs ($3 million), and higher purchased power expenses ($1 million).

Current wording

Operating revenues increased $6 million in the three months ended September 30, 2026 compared with the 2025 period primarily due to an increase in revenue from the steam rate plan ($3 million) and higher fuel expenses ($4 million).

Previous 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).

Current wording

Taxes, other than income taxes increased $9 million in the three months ended September 30, 2026 compared with the 2025 period primarily due to a higher deferral to levelize the customer bill impact of the steam rate plan ($3 million), higher deferral of over-collected property taxes ($4 million), and higher payroll taxes ($2 million).

Previous 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:

Current wording

At$990 million, taxes other than income taxes remain one of CECONY’s largest operating expenses forthe three months ended September 30, 2026. The principal components of, and variations in, taxes other than income taxes were:

Previous wording

Other income decreased $60 million in the three months ended June 30, 2026 compared with the 2025 period primarily due to lower credits associated with components of pension and other postretirement benefits other than service cost ($60 million).

Current wording

Other income decreased $54 million in the three months ended September 30, 2026 compared with the 2025 period primarily due to lower credits associated with components of pension and other postretirement benefits other than service cost ($60 million), and lower income resulting from investment performance in the deferred compensation plan ($5 million), offset in part by an increase in allowance for funds used during construction (AFUDC) ($9 million).

Previous 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).

Current wording

Net interest expense increased $8 million in the three months ended September 30, 2026 compared with the 2025 period primarily due to higher interest on long-term debt resulting from increased debt balances ($31 million), offset in part by a decrease in other interest expense ($8 million), interest related to clean energy fund reconciliation ($7 million), interest on regulatory liability balances ($3 million), and an increase in AFUDC ($5 million).

Previous wording

Income taxes increased $54 million in the six months ended June 30, 2026 compared with the 2025 period primarily due to higher income before income tax expense ($30 million), lower benefit from the amortization of MTA tax surcredit ($12 million), lower write-offs of uncollectible accounts ($15 million) and higher cost of removal ($5 million), offset in part by higher amortization of excess deferred federal income taxes ($10 million).

Current wording

Income taxes increased $54 million in the three months ended September 30, 2026 compared with the 2025 period primarily due to higher income before income tax expense ($35 million), lower benefit from the annual amortization of MTA tax surcredit ($4 million), lower write-offs of uncollectible accounts ($13 million), and higher cost of removal ($3 million).

Previous 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.

Current wording

(d)After adjusting for weather and other variations, electric delivery volumes in O&R’s service area decreased 0.4 percent in the three months ended September 30, 2026 compared with the 2025 period.

Previous wording

Operating revenues did not change in the three months ended June 30, 2026 compared with the 2025 period primarily due to higher revenues from the company's New York gas rate plan ($3 million), offset by lower gas purchased for resale ($3 million).

Current wording

Operating revenues increased $14 million in the three months ended September 30, 2026 compared with the 2025 period primarily due to higher revenues from the company's New York electric rate plan ($16 million), offset in part by lower purchased power expenses ($1 million).

Previous wording

(a)Revenues from New York gas sales are subject toa weather normalization clause anda 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 New York gas sales are subject toarevenue 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 weather and other variations, firm sales and transportation volumes in O&R's service area decreased 1.4 percent in the three months ended June 30, 2026 compared with the 2025 period.

Current wording

(b)After adjusting for weather and other variations, firm sales and transportation volumes in O&R's service area decreased 0.8 percent in the three months ended September 30, 2026 compared with the 2025 period.

Previous 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).

Current wording

Operating revenues increased $2 million in the three months ended September 30, 2026 compared with the 2025 period primarily due to higher revenues from the company's New York gas rate plan ($2 million).