Item 2: Management’s Discussion and Analysis of Financial Condition and Results of Operations

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.

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'

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

1-01217).

Information in any item of this report referred to in this discussion and analysis is incorporated by reference herein. The use of terms such as “see” or “refer to” shall be deemed to incorporate by reference into this discussion and analysis the information to which reference is made.

Con Edison, incorporated in New York State in 1997, is a holding company that owns all of the outstanding common stock of CECONY, Orange and Rockland Utilities, Inc. (O&R) and Con Edison Transmission, Inc. (together with its subsidiaries, “Con Edison Transmission”). As used in this report, the term the “Utilities” refers to CECONY and O&R.

Con Edison

CECONY

O&R

Con Edison Transmission

•RECO

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, 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.

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

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.

Aged Accounts Receivable Balances

T1At 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.

CECONY’s rate plans include reconciliation of uncollectible expenses and late payment charges (from January 1, 2026 through December 31, 2028 for electric and gas and from January 1, 2020 through October 31, 2026 for steam), pursuant to which CECONY will calculate the annual difference between (i) its actual uncollectible expenses and late payment charges and (ii) the levels of uncollectible expenses and late payment charges provided in rates. In the event the actual net expenses (uncollectible expenses plus late payment charges) are below the amounts in rates, CECONY will defer the full variance as a regulatory liability and refund to customers via surcredit. In the event the actual net expenses are above the amounts in rates, CECONY will defer the full annual variance above $10 million ($8.5 million for electric and $1.5 million for gas) in 2026; above $15 million ($12.75 million for electric and $2.25 million for gas) in 2027; and above $20 million ($17.0 million for electric and $3.0 million for gas) in 2028; as a regulatory asset for recovery via surcharge.

Annual surcharge recovery is subject to a 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 future recovery in CECONY’s next base rate cases.

O&R’s rate plans for the three-year period January 2025 through December 2027 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 expenses and late payment charges, and the level set forth in rates that is above the threshold. Recovery/refunds will be made via surcharge/surcredit. 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.

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 slow recovery of accounts receivable balances has impacted and is expected to continue to impact the Companies’ liquidity.

T2The 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.

Electric Supply

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.

Electric Reliability Needs

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.

In July 2026, the NYISO issued its 2026 Quarter 2 Short-Term Assessment of Reliability Report, that, among other things, continued to identify reliability needs in New York City over the near-term planning horizon (i.e., 2026 - 2030). The report stated that previously identified reliability needs in New York City remain dependent on the timely completion and energization of planned transmission and generation projects, as well as the demonstration of planned power capability by the Champlain Hudson Power Express project that entered commercial operation in May 2026. The report further indicated that NYISO has designated certain generating units to remain available through May 1, 2029 to address ongoing reliability needs while planned solutions are implemented.

NYISO also indicated that with demand growth and the risk of aging generation, absent additional supply resources, reliability needs are likely to emerge beyond the report's near-term study horizon. CECONY will continue to monitor reliability assessments, regulatory developments and the progress of planned transmission and generation projects.

T3In July 2026, CECONY filed with the NYSPSC its updated Reliability Needs Report, which projects electric reliability needs in New York City of 125 MW beginning in 2033 and increasing to 675 MW by 2036. This report reflects a deferral of the need by one year and a reduction in the size of the need relative to the company’s January 2026 Reliability Needs Report. CECONY continues to project increasing long-term capacity shortfalls in its New York City transmission system, driven by load growth and generation retirements without new replacement generation materializing.

Also in July 2026, CECONY filed a reliability contingency plan with the NYSPSC to address transmission reliability needs in New York City. The plan emphasizes competitive procurement of clean energy resources, including transmission- and distribution-connected battery storage, while preserving flexibility to implement transmission infrastructure solutions, if necessary. CECONY requested regulatory approvals to support the competitive procurement of battery storage, including cost recovery. CECONY expects its proposed solutions, if approved, would be sufficient to address the identified ten-year reliability need through 2036 and will continue to evaluate evolving reliability forecasts, market conditions, technological developments and policy changes and provide updates to the NYSPSC.

Energy Affordability

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.

Clean Energy Goals

The success of the Companies’ efforts to meet clean energy policy goals and the impact of energy consumers' efforts to meet such goals on CECONY’s electric, gas and steam businesses and O&R’s electric and gas businesses may impact the Companies’ future financial condition. T4The Utilities expect electric usage to increase and gas and steam usage to decrease in their service territories as laws and policies are enacted and implemented that aim to reduce the carbon intensity of the energy that is consumed in their respective jurisdictions. The Utilities’ and their regulators’ efforts to maintain electric reliability in their service territories as electric usage increases may also impact the Companies’ future financial condition.

The long-term future of the Utilities’ gas businesses depends upon the role that natural gas or other gaseous fuels will play in facilitating New York State’s and New York City’s climate goals. In addition, the impact and costs from climate change impacts on the Utilities’ systems and the success of the Utilities’ efforts to maintain system reliability and manage service interruptions resulting from severe weather may impact the Companies’ future financial condition, results of operations and liquidity.

State Utility Regulation

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. T5Effective 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.

Federal Regulation

In February 2026, the U.S. Supreme Court ruled that U.S. tariffs imposed under the International Emergency Economic Powers Act (IEEPA) on goods imported into the U.S. were unauthorized, but the ruling did not address the potential recovery of duties previously collected under the invalidated IEEPA tariffs. The Utilities are evaluating whether refunds of IEEPA tariffs paid through their third-party vendors are available to them.

T6Although tariffs have not had a significant impact on the Companies' operations or financial condition to date, the cost of materials has increased across various supply chain contract portfolios. If tariffs (other than the IEEPA tariffs) remain in place, the cost of materials is anticipated to continue to increase and also may lead to supply chain disruptions.

The Companies continue to assess tariffs and are unable to predict the impact on their operations or financial condition. In addition, the Companies continue to monitor the evolving legal and policy landscape related to tariffs and are unable to predict changes in laws, regulations, regulatory guidance, legal interpretations, policy positions or implementation actions that may result from these developments.

Federal Energy Regulatory Commission (FERC)

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.

Cyber Regulation

T7In 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.

Con Edison Transmission

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. See the table under "Con Edison Transmission," below. 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 April 2026, CECONY and Con Edison Transmission entered into an agreement to sell their interests in 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 from the NYSPSC.

CECONY

Electric

CECONY provides electric service to approximately 3.7 million customers in all of New York City (except a part of Queens) and most of Westchester County, an approximately 660 square mile service area with a population of more than nine million.

Gas

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

In June 2026, CECONY updated its five-year forecast of average annual firm peak gas demand in its service area at design conditions from a 0.2 percent increase (for 2026 to 2030) to a 0.2 percent decrease (for 2027 to 2031).

Steam

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.

In June 2026, CECONY updated its five-year forecast of the average annual peak steam demand in its service area at design conditions from a 0.9 percent decrease (for 2026 to 2030) to a 0.7 percent decrease (for 2027 to 2031).

O&R

Electric

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.

Gas

O&R delivers gas to over 0.1 million customers in southeastern New York.

In June 2026, O&R updated its five-year forecast of the average annual firm peak gas demand in its service area at design conditions from a 1.2 percent increase (for 2026 to 2030) to a 0.7 percent increase (for 2027 to 2031).

Certain financial data of Con Edison’s businesses are presented below:

For the Three Months Ended

June 30, 2026

For the Six Months Ended

June 30, 2026

At June 30, 2026

(Millions of Dollars, except percentages)

Operating

Revenues

Net Income for Common Stock

Operating

Revenues

Net Income for

Common Stock

Assets

CECONY

$3,805

$296

$8,459

$1,029

$71,287

O&R

263

704

4,597

Total Utilities

$4,068

100

$304

$9,163

100

$1,088

$75,884

Con Edison Transmission

—

150

381

Other (a)

—

(3)

(1)

—

(6)

—

194

—

Total Con Edison

$4,069

100

$308

100

$9,164

100

$1,232

100

$76,459

100

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

One Big Beautiful Bill Act

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.

Inflation Reduction Act

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.

T8Beginning 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 June 30, 2026, Con Edison accrued a CAMT liability of $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.

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.

New York Legislation

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.

In May 2025, New York adopted the 2025-2026 budget bill into law that included increases in payroll tax rates from 0.6 percent to 0.895 percent for CECONY and from 0.34 percent to 0.635 percent for O&R, effective July 1, 2025.

Results of Operations

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

For the Three Months Ended June 30,

For the Six Months Ended June 30,

2026

2025

2026

2025

2026

2025

2026

2025

(Millions of Dollars, except per share amounts)

Net Income for Common Stock

Earnings

per Share

Net Income for Common Stock

Earnings

per Share

CECONY

$296

$222

$0.80

$0.62

$1,029

$967

$2.81

$2.73

O&R

0.02

0.16

0.15

Con Edison Transmission (a)

0.02

0.03

150

0.42

0.06

Other (b)

(3)

(0.01)

0.01

(6)

(2)

(0.02)

(0.01)

Con Edison (c)

$308

$246

$0.83

$0.68

$1,232

$1,038

$3.37

$2.93

(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.

(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.

(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.

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.

Variation for the Three Months Ended June 30, 2026 vs. 2025

Net Income for Common Stock (Net of Tax) (Millions of Dollars)

Earnings per Share

CECONY (a)

Higher electric rate base and timing of billing of rate increase

$25

$0.07

Higher gas rate base and timing of billing of rate increase

0.06

Lower other interest expense

0.03

Lower electric operations and maintenance expense

0.02

Higher income from allowance for funds used during construction

0.01

Dilutive effect of issuance of common shares

—

(0.02)

Other

0.01

Total CECONY

0.18

O&R (a)

Electric base rate increase

0.01

Gas base rate increase

—

Higher interest expense on long-term debt

(3)

(0.01)

Other

(2)

—

Total O&R

—

Con Edison Transmission

Accretion of the basis difference of Con Edison's equity interest in MVP

(2)

(0.01)

Transaction costs associated with the strategic alternatives review of Con Edison's equity interests in MVP and Honeoye

(1)

—

Total Con Edison Transmission

(3)

(0.01)

Other, including parent company expenses (b)

Higher other interest expense

(2)

(0.01)

HLBV effects

(2)

—

Loss and other impacts related to the sale of the Clean Energy Businesses in 2025

(1)

—

Higher income tax expense

(1)

—

Other

(3)

(0.01)

Total Other, including parent company expenses

(9)

(0.02)

Total Reported (GAAP basis)

$62

$0.15

(a)Under the revenue decoupling mechanisms in the Utilities’ New York electric and gas rate plans, revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved. The Utilities' gas and CECONY’s steam sales are subject to a weather normalization clause, as a result of which, delivery revenues reflect normal weather conditions during the heating season. In general, the Utilities recover on a current basis the fuel, gas purchased for resale and purchased power costs they incur in supplying energy to their full-service customers. Accordingly, such costs do not generally affect Con Edison’s results of operations.

(b)Other includes the parent company, Con Edison's tax equity investments and consolidation adjustments.

Variation for the Six Months Ended June 30, 2026 vs. 2025

Net Income for Common Stock (Net of Tax) (Millions of Dollars)

Earnings per Share

CECONY (a)

Higher electric rate base

$33

$0.09

Higher gas rate base

0.07

Higher income from allowance for funds used during construction

0.02

Dilutive effect of issuance of common shares

—

(0.09)

Other

(3)

(0.01)

Total CECONY

0.08

O&R (a)

Electric base rate increase

0.02

Gas base rate increase

0.01

Higher interest expense on long-term debt

(6)

(0.02)

Total O&R

0.01

Con Edison Transmission

Gain on the sale of Con Edison's equity interest in MVP

134

0.37

Transaction costs associated with the strategic alternatives review of Con Edison's equity interests in MVP and Honeoye

(3)

(0.01)

Accretion of the basis difference of Con Edison's equity interest in MVP

(3)

(0.01)

Other

0.01

Total Con Edison Transmission

130

0.36

Other, including parent company expenses (b)

Higher income tax expense

(3)

(0.01)

Higher other interest expense

(2)

(0.01)

Loss and other impacts related to the sale of the Clean Energy Businesses in 2025

(1)

—

HLBV effects

—

Other

0.01

Total Other, including parent company expenses

(4)

(0.01)

Total Reported (GAAP basis)

$194

$0.44

(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.

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

For the Three Months Ended June 30,

For the Six Months Ended June 30,

(Millions of Dollars)

2026

2025

2026

2025

CECONY

Operations

$533

$509

$1,056

$994

Pensions and other postretirement benefits (a)

(19)

(39)

Health care and other benefits

120

Regulatory fees and assessments (b)

102

118

221

242

Other

139

142

300

332

Total CECONY

$814

$826

$1,658

$1,680

O&R

189

188

Con Edison Transmission

Other (c)

—

(1)

—

Total other operations and maintenance expenses

$913

$923

$1,851

$1,875

(a)CECONY’s rate plans include reconciliation of pension and other postretirement benefits costs. Credits to other operations and maintenance expense includes reconciliation to the levels set forth in rates and costs capitalized.

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

(c)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.

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.

The Companies’ results of operations for the three months ended June 30, 2026 and 2025 were as follows:

CECONY

O&R

Con Edison

Transmission

Other (a)

Con Edison (b)

(Millions of Dollars)

2026

2025

2026

2025

2026

2025

2026

2025

2026

2025

Operating revenues

$3,805

$3,340

$263

$254

$—

$4,069

$3,595

Purchased power

765

579

—

837

649

Fuel

—

Gas purchased for resale

135

148

—

(1)

156

171

Other operations and maintenance

814

826

—

913

923

Depreciation and amortization

544

—

578

576

Taxes, other than income taxes

952

869

—

977

894

Operating income (loss)

539

347

(1)

(3)

(2)

552

355

Other income

149

209

—

170

241

Net interest expense (income)

294

286

—

(1)

314

300

Income (loss) before income tax expense (benefit)

394

270

(4)

408

296

Income tax expense (benefit)

—

(1)

(3)

100

Net income (loss) for common stock

$296

$222

$10

$(3)

$308

$246

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

(b)Represents the consolidated results of operations of Con Edison and its businesses.

CECONY

For the Three Months Ended June 30, 2026

For the Three Months Ended June 30, 2025

(Millions of Dollars)

Electric

Gas

Steam

2026 Total

Electric

Gas

Steam

2025 Total

2026-2025 Variation

Operating revenues

$2,934

$753

$118

$3,805

$2,581

$653

$106

$3,340

$465

Purchased power

757

—

765

572

—

579

186

Fuel

—

Gas purchased for resale

—

135

—

135

—

148

—

148

(13)

Other operations and maintenance

610

142

814

636

134

826

(12)

Depreciation and amortization

392

122

544

396

119

544

—

Taxes, other than income taxes

709

182

952

650

166

869

Operating income

$425

$172

$(58)

$539

$312

$86

$(51)

$347

$192

Electric

CECONY’s results of electric operations for the three months ended June 30, 2026 compared with the 2025 period were as follows:

For the Three Months Ended

(Millions of Dollars)

June 30, 2026

June 30, 2025

Variation

Operating revenues

$2,934

$2,581

$353

Purchased power

757

572

185

Fuel

Other operations and maintenance

610

636

(26)

Depreciation and amortization

392

396

(4)

Taxes, other than income taxes

709

650

Electric operating income

$425

$312

$113

CECONY’s electric sales and deliveries for the three months ended June 30, 2026 compared with the 2025 period were:

Millions of kWh Delivered

Revenues in Millions (a)

For the Three Months Ended

Description

June 30, 2026

June 30, 2025

Variation

Percent

Variation

June 30, 2026

June 30, 2025

Variation

Percent

Variation

Residential/Religious (b)

2,880

2,466

414

16.8

$1,203

$921

$282

30.6

Commercial/Industrial

2,478

2,419

2.4

851

723

128

17.7

Retail choice customers

4,659

4,722

(63)

(1.3)

615

604

1.8

NYPA, Municipal Agency and other sales

2,285

2,324

(39)

(1.7)

247

219

12.8

Other operating revenues (c)

—

114

(96)

(84.2)

Total

12,302

11,931

371

3.1

(d)

$2,934

$2,581

$353

13.7

(a)Revenues from electric sales are subject to a revenue decoupling mechanism, as a result of which delivery revenues generally are not affected by changes in delivery volumes from levels assumed when rates were approved.

(b)“Residential/Religious” generally includes single-family dwellings, individual apartments in multi-family dwellings, religious organizations and certain other not-for-profit organizations.

(c)Other electric 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.

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

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).

Purchased power expenses increased $185 million in the three months ended June 30, 2026 compared with the 2025 period due to higher unit costs ($139 million), and higher purchased volumes ($46 million).

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).

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).

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).

Gas

CECONY’s results of gas operations for the three months ended June 30, 2026 compared with the 2025 period were as follows:

For the Three Months Ended

(Millions of Dollars)

June 30, 2026

June 30, 2025

Variation

Operating revenues

$753

$653

$100

Gas purchased for resale

135

148

(13)

Other operations and maintenance

142

134

Depreciation and amortization

122

119

Taxes, other than income taxes

182

166

Gas operating income

$172

$86

CECONY’s gas sales and deliveries, excluding off-system sales, for the three months ended June 30, 2026 compared with the 2025 period were:

Thousands of Dt Delivered

Revenues in Millions (a)

For the Three Months Ended

Description

June 30, 2026

June 30, 2025

Variation

Percent

Variation

June 30, 2026

June 30, 2025

Variation

Percent

Variation

Residential

9,597

9,253

344

3.7

$277

$282

$(5)

(1.8)

General

7,639

7,664

(25)

(0.3)

190

195

(5)

(2.6)

Firm transportation

15,842

16,590

(748)

(4.5)

193

204

(11)

(5.4)

Total firm sales and transportation

33,078

33,507

(429)

(1.3)

(b)

$660

$681

$(21)

(3.1)

Interruptible sales

851

1,059

(208)

(19.6)

(2)

(28.6)

NYPA

14,180

9,697

4,483

46.2

—

Generation plants

16,710

14,572

2,138

14.7

20.0

Other

3,873

4,270

(397)

(9.3)

—

Other operating revenues (c)

—

(51)

122

Large

Total

68,692

63,105

5,587

8.9

$753

$653

$100

15.3

(a)Revenues from gas sales are subject to a weather normalization clause and a revenue decoupling mechanism as a result of which delivery revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved.

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

(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.

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).

Gas purchased for resale decreased $13 million in the three months ended June 30, 2026 compared with the 2025 period due to lower purchased volumes ($13 million).

Other operations and maintenance increased $8 million in the three months ended June 30, 2026 compared with the 2025 period primarily due to higher costs for injuries and damages ($3 million), an increase in stock-based compensation ($2 million), and higher health care costs ($2 million).

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).

Steam

CECONY’s results of steam operations for the three months ended June 30, 2026 compared with the 2025 period were as follows:

For the Three Months Ended

(Millions of Dollars)

June 30, 2026

June 30, 2025

Variation

Operating revenues

$118

$106

$12

Purchased power

Fuel

Other operations and maintenance

Depreciation and amortization

Taxes, other than income taxes

Steam operating income

$(58)

$(51)

$(7)

CECONY’s steam sales and deliveries for the three months ended June 30, 2026 compared with the 2025 period were:

Millions of Pounds Delivered

Revenues in Millions

For the Three Months Ended

Description

June 30, 2026

June 30, 2025

Variation

Percent

Variation

June 30, 2026

June 30, 2025

Variation

Percent

Variation

General

7.3

40.0

Apartment house

858

880

(22)

(2.5)

12.1

Annual power

1,748

1,753

(5)

(0.3)

13.9

Other operating revenues (a)

—

(8)

(4)

Large

Total

2,665

2,688

(23)

(0.9)

(b)

$118

$106

$12

11.3

(a)Other steam operating revenues generally reflect changes in regulatory assets and liabilities in accordance with CECONY’s rate plan.

(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.

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).

Other operations and maintenance increased $6 million in the three months ended June 30, 2026 compared with the 2025 period primarily due to higher steam operations maintenance activities ($7 million).

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).

Taxes, Other Than Income Taxes

At $952 million, taxes other than income taxes remain one of CECONY’s largest operating expenses for the three months ended June 30, 2026. The principal components of, and variations in, taxes other than income taxes were:

For the Three Months Ended

June 30,

(Millions of Dollars)

2026

2025

Variation

Property taxes

$763

$722

$41

State and local taxes related to revenue receipts

127

102

Payroll taxes

Other taxes (b)

Total

$952

(a)

$869

(a)

$83

(a)Including sales tax on customers’ bills, total taxes other than income taxes in 2026 and 2025 were $1,154 million and $1,048 million, respectively.

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

Other Income (Deductions)

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).

Net Interest Expense

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).

Income Tax Expense

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).

O&R

For the Three Months Ended

June 30, 2026

For the Three Months Ended

June 30, 2025

(Millions of Dollars)

Electric

Gas

2026 Total

Electric

Gas

2025 Total

2026-2025 Variation

Operating revenues

$205

$58

$263

$196

$58

$254

Purchased power

—

Gas purchased for resale

—

(3)

Other operations and maintenance

Depreciation and amortization

Taxes, other than income taxes

Operating income

$20

$(4)

$16

$(3)

$13

Electric

O&R’s results of electric operations for the three months ended June 30, 2026 compared with the 2025 period were as follows:

For the Three Months Ended

(Millions of Dollars)

June 30, 2026

June 30, 2025

Variation

Operating revenues

$205

$196

Purchased power

Other operations and maintenance

Depreciation and amortization

Taxes, other than income taxes

—

Electric operating income

$20

$16

O&R’s electric sales and deliveries for the three months ended June 30, 2026 compared with the 2025 period were:

Millions of kWh Delivered

Revenues in Millions (a)

For the Three Months Ended

Description

June 30, 2026

June 30, 2025

Variation

Percent

Variation

June 30, 2026

June 30, 2025

Variation

Percent

Variation

Residential/Religious (b)

516

473

9.1

$125

$115

$10

8.7

Commercial/Industrial

243

247

(4)

(1.6)

(9)

(17.6)

Retail choice customers

569

526

8.2

(2)

(5.4)

Public authorities

(1)

(3.7)

66.7

Other operating revenues (c)

—

(2)

(10)

(80.0)

Total

1,354

1,273

6.4

(d)

$205

$196

4.6

(a)O&R’s New York electric delivery revenues are subject to a revenue decoupling mechanism, as a result of which delivery revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved. The majority of O&R’s electric distribution revenues in New Jersey are subject to a conservation incentive program, as a result of which distribution revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved. O&R’s electric transmission revenues in New Jersey are not subject to a conservation incentive program, and as a result, changes in such volumes do impact revenues.

(b)“Residential/Religious” generally includes single-family dwellings, individual apartments in multi-family dwellings, religious organizations and certain other not-for-profit organizations.

(c)Other electric operating revenues generally reflect changes in regulatory assets and liabilities in accordance with O&R’s electric rate plan.

(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.

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).

Gas

O&R’s results of gas operations for the three months ended June 30, 2026 compared with the 2025 period were as follows:

For the Three Months Ended

(Millions of Dollars)

June 30, 2026

June 30, 2025

Variation

Operating revenues

$58

$—

Gas purchased for resale

(3)

Other operations and maintenance

Depreciation and amortization

Taxes, other than income taxes

Gas operating income

$(4)

$(3)

$(1)

O&R’s gas sales and deliveries, excluding off-system sales, for the three months ended June 30, 2026 compared with the 2025 period were:

Thousands of Dt Delivered

Revenues in Millions (a)

For the Three Months Ended

Description

June 30, 2026

June 30, 2025

Variation

Percent

Variation

June 30, 2026

June 30, 2025

Variation

Percent

Variation

Residential

1,602

1,677

(75)

(4.5)

$35

$41

$(6)

(14.6)

General

377

400

(23)

(5.8)

—

Firm transportation

773

774

(1)

(0.1)

(1)

(12.5)

Total firm sales and transportation

2,752

2,851

(99)

(3.5)

(b)

$48

$55

$(7)

(12.7)

Interruptible sales

758

838

(80)

(9.5)

—

Other

119

110

8.2

—

Other gas revenues

—

Large

Total

3,629

3,799

(170)

(4.5)

$58

$—

—

(a)Revenues from New York gas sales are subject to a weather normalization clause and a revenue decoupling mechanism as a result of which delivery revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved.

(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.

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).

Taxes, Other Than Income Taxes

Taxes, other than income taxes, increased $1 million in 2026 compared with 2025 for the three months ended June 30, 2026. The principal components of taxes, other than income taxes, were:

For the Three Months Ended

June 30,

(Millions of Dollars)

2026

2025

Variation

Property taxes

$18

$—

State and local taxes related to revenue receipts

—

Payroll taxes

Total

$24

(a)

$23

(a)

(a)Including sales tax on customers’ bills, total taxes other than income taxes in 2026 and 2025 were $32 million and $31 million, respectively.

Con Edison Transmission

Other Income (Deductions)

Other income decreased $6 million in the three months ended June 30, 2026 compared with the 2025 period primarily due to lower investment income from MVP ($4 million).

The Companies’ results of operations for the six months ended June 30, 2026 and 2025 were as follows:

CECONY

O&R

Con Edison

Transmission

Other (a)

Con Edison (b)

(Millions of Dollars)

2026

2025

2026

2025

2026

2025

2026

2025

2026

2025

Operating revenues

$8,459

$7,782

$704

$610

$(1)

$9,164

$8,393

Purchased power

1,374

1,215

219

156

—

(1)

1,593

1,370

Fuel

245

154

—

245

154

Gas purchased for resale

496

453

—

582

533

Other operations and maintenance

1,658

1,680

189

188

(1)

—

1,851

1,875

Depreciation and amortization

1,082

1,077

—

1,150

1,140

Taxes, other than income taxes

1,958

1,789

—

2,013

1,841

Operating income (loss)

1,646

1,414

(3)

(5)

(4)

1,730

1,480

Gain on sale of interest in Mountain Valley Pipeline, LLC

—

189

—

189

—

Other income (deductions)

292

407

(1)

338

462

Net interest expense

580

579

—

622

612

Income (loss) before income tax expense (benefit)

1,358

1,242

212

(10)

(7)

1,635

1,330

Income tax expense (benefit)

329

275

(4)

(5)

403

292

Net income (loss) for common stock

$1,029

$967

$59

$53

$150

$20

($6)

$(2)

$1,232

$1,038

(a)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.

(b)Represents the consolidated results of operations of Con Edison and its businesses.

CECONY

For the Six Months Ended

June 30, 2026

For the Six Months Ended

June 30, 2025

(Millions of Dollars)

Electric

Gas

Steam

2026 Total

Electric

Gas

Steam

2025 Total

2026-2025 Variation

Operating revenues

$5,692

$2,217

$550

$8,459

$5,267

$2,055

$460

$7,782

$677

Purchased power

1,347

—

1,374

1,193

—

1,215

159

Fuel

136

—

109

245

—

154

Gas purchased for resale

—

496

—

496

—

453

—

453

Other operations and maintenance

1,259

279

120

1,658

1,295

273

112

1,680

(22)

Depreciation and amortization

779

244

1,082

784

237

1,077

Taxes, other than income taxes

1,411

405

142

1,958

1,312

366

111

1,789

169

Operating income (loss)

$760

$793

$93

$1,646

$602

$726

$86

$1,414

$232

Electric

CECONY’s results of electric operations for the six months ended June 30, 2026 compared with the 2025 period were as follows:

For the Six Months Ended

(Millions of Dollars)

June 30, 2026

June 30, 2025

Variation

Operating revenues

$5,692

$5,267

$425

Purchased power

1,347

1,193

154

Fuel

136

Other operations and maintenance

1,259

1,295

(36)

Depreciation and amortization

779

784

(5)

Taxes, other than income taxes

1,411

1,312

Electric operating income

$760

$602

$158

CECONY’s electric sales and deliveries for the six months ended June 30, 2026 compared with the 2025 period were:

Millions of kWh Delivered

Revenues in Millions (a)

For the Six Months Ended

Description

June 30, 2026

June 30, 2025

Variation

Percent

Variation

June 30, 2026

June 30, 2025

Variation

Percent

Variation

Residential/Religious (b)

6,296

5,504

792

14.4

$2,447

$2,052

$395

19.2

Commercial/Industrial

5,452

5,332

120

2.3

1,728

1,591

137

8.6

Retail choice customers

9,593

9,905

(312)

(3.1)

1,134

1,207

(73)

(6.0)

NYPA, Municipal Agency and other sales

4,707

4,768

(61)

(1.3)

449

416

7.9

Other operating revenues (c)

—

(66)

(67)

Large

Total

26,048

25,509

539

2.1

(d)

$5,692

$5,267

$425

8.1

(b)“Residential/Religious” generally includes single-family dwellings, individual apartments in multi-family dwellings, religious organizations and certain other not-for-profit organizations.

(d)After adjusting for variations, primarily weather and billing days, electric delivery volumes in CECONY’s service area increased 0.4 percent in the six months ended June 30, 2026 compared with the 2025 period.

Operating revenues increased $425 million in the six months ended June 30, 2026 compared with the 2025 period primarily due to higher purchased power expenses ($154 million), amortization of deferred costs ($89 million), higher fuel expenses ($55 million), higher revenues from the electric rate plan ($47 million), and higher other revenue ($6 million).

Purchased power expenses increased $154 million in the six months ended June 30, 2026 compared with the 2025 period due to higher purchased volumes ($105 million) and higher unit costs ($49 million).

Fuel expenses increased $55 million in the six months ended June 30, 2026 compared with the 2025 period due to higher unit costs ($29 million) and higher purchased volumes from CECONY's electric generating facilities ($26 million).

Other operations and maintenance decreased $36 million in the six 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 ($35 million).

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).

Gas

CECONY’s results of gas operations for the six months ended June 30, 2026 compared with the 2025 period were as follows:

For the Six Months Ended

(Millions of Dollars)

June 30, 2026

June 30, 2025

Variation

Operating revenues

$2,217

$2,055

$162

Gas purchased for resale

496

453

Other operations and maintenance

279

273

Depreciation and amortization

244

237

Taxes, other than income taxes

405

366

Gas operating income

$793

$726

$67

CECONY’s gas sales and deliveries, excluding off-system sales, for the six months ended June 30, 2026 compared with the 2025 period were:

Thousands of Dt Delivered

Revenues in Millions (a)

For the Six Months Ended

Description

June 30, 2026

June 30, 2025

Variation

Percent

Variation

June 30, 2026

June 30, 2025

Variation

Percent

Variation

Residential

36,966

35,515

1,451

4.1

$881

$874

0.8

General

24,941

23,543

1,398

5.9

558

531

5.1

Firm transportation

51,394

51,675

(281)

(0.5)

604

634

(30)

(4.7)

Total firm sales and transportation

113,301

110,733

2,568

2.3

(b)

2,043

2,039

0.2

Interruptible sales

1,917

2,168

(251)

(11.6)

26.3

NYPA

21,862

19,596

2,266

11.6

—

Generation plants

29,376

27,270

2,106

7.7

22.2

Other

9,402

10,517

(1,115)

(10.6)

(2)

(7.7)

Other operating revenues (c)

—

114

(39)

153

Large

Total

175,858

170,284

5,574

3.3

$2,217

$2,055

$162

7.9

(b)After adjusting for variations primarily weather, billing days, firm gas sales and transportation volumes in CECONY’s service area decreased 3.3 percent in the six months ended June 30, 2026 compared with the 2025 period.

Operating revenues increased $162 million in the six months ended June 30, 2026 compared with the 2025 period primarily due to an increase in gas purchased for resale ($43 million), higher gas non-firm revenue ($37 million), amortization of deferred costs ($34 million) and higher revenues from the gas rate plan ($17 million).

Gas purchased for resale increased $43 million in the six months ended June 30, 2026 compared with the 2025 period primarily due to higher unit costs ($81 million), offset in part by lower purchased volumes ($38 million).

Other operations and maintenance increased $6 million in the six months ended June 30, 2026 compared with the 2025 period primarily due to higher health care costs ($6 million).

Depreciation and amortization expenses increased $7 million in the six months ended June 30, 2026 compared with the 2025 period primarily due to higher gas utility plant balances.

Taxes, other than income taxes increased $39 million in the six months ended June 30, 2026 compared with the 2025 period primarily due to a higher deferral of over-collected property taxes ($15 million), higher property taxes ($12 million), higher state and local taxes ($7 million), and higher payroll taxes ($4 million).

Steam

CECONY’s results of steam operations for the six months ended June 30, 2026 compared with the 2025 period were as follows:

For the Six Months Ended

(Millions of Dollars)

June 30, 2026

June 30, 2025

Variation

Operating revenues

$550

$460

$90

Purchased power

Fuel

109

Other operations and maintenance

120

112

Depreciation and amortization

Taxes, other than income taxes

142

111

Steam operating income (loss)

$93

$86

CECONY’s steam sales and deliveries for the six months ended June 30, 2026 compared with the 2025 period were:

Millions of Pounds Delivered

Revenues in Millions (a)

For the Six Months Ended

Description

June 30, 2026

June 30, 2025

Variation

Percent

Variation

June 30, 2026

June 30, 2025

Variation

Percent

Variation

General

426

364

17.0

$33

$25

32.0

Apartment house

3,253

3,235

0.6

153

129

18.6

Annual power

6,925

6,760

165

2.4

372

313

18.8

Other operating revenues (b)

—

(8)

(7)

(1)

(14.3)

Total

10,604

10,359

245

2.4

(c)

$550

$460

$90

19.6

(a)Revenues from steam sales are subject to a weather normalization clause, as a result of which, delivery revenues reflect normal weather conditions during the heating season.

(b)Other steam operating revenues generally reflect changes in regulatory assets and liabilities in accordance with CECONY’s rate plan.

(c)After adjusting for variations, primarily weather and billing days, steam sales and deliveries in the company's service area decreased 5.6 percent in the six months ended June 30, 2026 compared with the 2025 period.

Operating revenues increased $90 million in the six months ended June 30, 2026 compared with the 2025 period primarily due to higher fuel expenses ($36 million), an increase in revenue from the steam rate plan ($34 million), higher purchased power expenses ($5 million), and higher unbilled revenue ($3 million).

Fuel expenses increased $36 million in the six months ended June 30, 2026 compared with the 2025 period due to higher unit costs ($36 million).

Other operations and maintenance expenses increased $8 million in the six months ended June 30, 2026 compared with the 2025 period primarily due to higher steam operations maintenance activities ($9 million).

Taxes, other than income taxes increased $31 million in the six months ended June 30, 2026 compared with the 2025 period primarily due to higher deferral of over-collected property taxes ($33 million), higher state and local revenue taxes ($2 million), offset by lower property taxes ($3 million) and lower payroll taxes ($1 million).

Taxes, Other Than Income Taxes

At $1,958 million, taxes other than income taxes remain one of CECONY’s largest operating expenses for the six months ended June 30, 2026. The principal components of, and variations in, taxes other than income taxes were:

For the Six Months Ended

June 30,

(Millions of Dollars)

2026

2025

Variation

Property taxes

$1,538

$1,448

$90

State and local taxes related to revenue receipts

269

230

Payroll taxes

Other taxes (b)

Total

$1,958

(a)

$1,789

(a)

$169

(a)Including sales tax on customers’ bills, total taxes other than income taxes in 2026 and 2025 were $2,408 million and $2,210 million, respectively.

(b)Including the deferral of over-collected property taxes in 2026 of $89 million and the deferral of over-collected property taxes in 2025 of $52 million, respectively.

Other Income (Deductions)

Other income decreased $115 million in the six 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 ($120 million), offset in part by an increase in AFUDC ($6 million).

Income Tax Expense

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).

O&R

For the Six Months Ended

June 30, 2026

For the Six Months Ended

June 30, 2025

(Millions of Dollars)

Electric

Gas

2026 Total

Electric

Gas

2025 Total

2026-2025 Variation

Operating revenues

$487

$217

$704

$411

$199

$610

$94

Purchased power

219

—

219

156

—

156

Gas purchased for resale

—

Other operations and maintenance

146

189

148

188

Depreciation and amortization

Taxes, other than income taxes

Operating income

$45

$47

$92

$33

$42

$75

$17

Electric

O&R’s results of electric operations for the six months ended June 30, 2026 compared with the 2025 period were as follows:

For the Six Months Ended

(Millions of Dollars)

June 30, 2026

June 30, 2025

Variation

Operating revenues

$487

$411

$76

Purchased power

219

156

Other operations and maintenance

146

148

(2)

Depreciation and amortization

Taxes, other than income taxes

Electric operating income

$45

$33

$12

O&R’s electric sales and deliveries for the six months ended June 30, 2026 compared with the 2025 period were:

Millions of kWh Delivered

Revenues in Millions (a)

For the Six Months Ended

Description

June 30, 2026

June 30, 2025

Variation

Percent

Variation

June 30, 2026

June 30, 2025

Variation

Percent

Variation

Residential/Religious (b)

1,135

1,033

102

9.9

$309

$240

$69

28.8

Commercial/Industrial

554

534

3.7

109

10.1

Retail choice customers

1,154

1,062

8.7

(3)

(4.2)

Public authorities

1.8

28.6

Other operating revenues (c)

—

(8)

(6)

(2)

33.3

Total

2,900

2,685

215

8.0

(d)

$487

$411

$76

18.5

(b)“Residential/Religious” generally includes single-family dwellings, individual apartments in multi-family dwellings, religious organizations and certain other not-for-profit organizations.

(c)Other electric operating revenues generally reflect changes in regulatory assets and liabilities in accordance with O&R’s electric rate plan.

(d)After adjusting for weather and other variations, electric delivery volumes in O&R’s service area increased 3.9 percent in the six months ended June 30, 2026 compared with the 2025 period.

Operating revenues increased $76 million in the six months ended June 30, 2026 compared with the 2025 period primarily due to higher purchased power expenses ($63 million), and higher revenues from the New York electric rate plan ($13 million).

Purchased power expenses increased $63 million in the six months ended June 30, 2026 compared with the 2025 period due to higher unit costs ($57 million) and higher purchased volumes ($6 million).

Gas

O&R’s results of gas operations for the six months ended June 30, 2026 compared with the 2025 period were as follows:

For the Six Months Ended

(Millions of Dollars)

June 30, 2026

June 30, 2025

Variation

Operating revenues

$217

$199

$18

Gas purchased for resale

Other operations and maintenance

Depreciation and amortization

Taxes, other than income taxes

Gas operating income

$47

$42

O&R’s gas sales and deliveries, excluding off-system sales, for the six months ended June 30, 2026 compared with the 2025 period were:

Thousands of Dt Delivered

Revenues in Millions (a)

For the Six Months Ended

Description

June 30, 2026

June 30, 2025

Variation

Percent

Variation

June 30, 2026

June 30, 2025

Variation

Percent

Variation

Residential

9,289

8,818

471

5.3

$172

$150

$22

14.7

General

2,012

1,910

102

5.3

16.0

Firm transportation

3,394

3,373

0.6

11.5

Total firm sales and transportation

14,695

14,101

594

4.2

(b)

$230

$201

$29

14.4

Interruptible sales

1,709

1,930

(221)

(11.5)

—

Generation plants

—

(2)

Large

—

Other

469

456

2.9

—

Other gas revenues

—

(18)

(6)

(12)

Large

Total

16,873

16,489

384

2.3

$217

$199

$18

9.0

(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 six months ended June 30, 2026 compared with the 2025 period.

Operating revenues increased $18 million in the six months ended June 30, 2026 compared with the 2025 period primarily due to higher revenues from the New York gas rate plan ($11 million), and an increase in gas purchased for resale ($6 million).

Gas purchased for resale increased $6 million in the six months ended June 30, 2026 compared with the 2025 period due to higher unit costs ($14 million), offset in part by lower purchased volumes ($8 million).

Taxes, Other Than Income Taxes

Taxes, other than income taxes, increased $2 million in 2026 compared with 2025 for the six months ended June 30, 2026. The principal components of taxes, other than income taxes, were:

For the Six Months Ended

June 30,

(Millions of Dollars)

2026

2025

Variation

Property taxes

$37

$35

State and local taxes related to revenue receipts

—

Payroll taxes

—

Total

$51

(a)

$49

(a)

(a)Including sales tax on customers’ bills, total taxes other than income taxes in 2026 and 2025 were $71 million and $66 million, respectively.

Con Edison Transmission

Other Income (Deductions)

Other income decreased $7 million in the six months ended June 30, 2026 compared with the 2025 period primarily due to lower investment income from MVP ($8 million) and transaction expenses associated with the sale of MVP ($4 million), offset in part by higher investment income from NY Transco ($4 million).

Income Tax Expense

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 from the sale of its interest in MVP.

Liquidity and Capital Resources

The Companies monitor the financial markets closely, including borrowing rates and daily cash collections. Increases in aged accounts receivable balances, inflationary pressure and higher interest rates have increased the amount of capital needed by the Utilities and the costs of such capital. See "Interest Rate Risk," below, "Aged Accounts Receivable Balances," above and "Capital Resources," below.

Con Edison and the Utilities have a $3,500 million revolving credit agreement (the Credit Agreement) in place under which banks are committed to provide loans on a revolving credit basis until March 2031, which may be extended for two additional one-year terms, subject to certain conditions. Con Edison and the Utilities have not entered into any loans under the Credit Agreement and CECONY has not entered into any loans under the CECONY Credit Agreement. See Note D to the Second Quarter Financial Statements.

The FERC has authorized CECONY through April 30, 2028 and O&R through July 31, 2028 to issue short-term borrowings for a period of not more than 12 months, in an amount not to exceed $5,000 million and $250 million, respectively, at prevailing market rates.

The Companies’ liquidity reflects cash flows from operating, investing and financing activities, as shown on their respective consolidated statements of cash flows and as discussed below.

The Companies’ cash, temporary cash investments and restricted cash resulting from operating, investing and financing activities for the six months ended June 30, 2026 and 2025 are summarized as follows:

For the Six Months Ended June 30,

CECONY

O&R

Con Edison

Transmission

Other (a)(b)

Con Edison (b)

(Millions of Dollars)

2026

2025

2026

2025

2026

2025

2026

2025

2026

2025

Operating activities

$1,766

$2,700

$143

$133

$16

$58

$(33)

$1,971

$2,816

Investing activities

(2,449)

(2,479)

(232)

(192)

328

(29)

(1)

(2,354)

(2,655)

Financing activities

520

(13)

(332)

(3)

(59)

(28)

223

Net change for the period

(163)

208

(2)

—

(16)

(2)

(16)

(160)

174

Balance at beginning of period

1,581

1,254

1,630

1,333

Balance at end of period (c)

$1,418

$1,462

$29

$36

$19

$1,470

$1,507

(a) 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.

(b) Represents the consolidated results of operations of Con Edison and its businesses.

(c) See "Reconciliation of Cash, Temporary Cash Investments and Restricted Cash" in Note A to the Second Quarter Financial Statements.

Cash Flows from Operating Activities

The Utilities’ cash flows from operating activities primarily reflect their energy sales and deliveries and cost of operations. The volume of energy sales and deliveries is primarily affected by factors external to the Utilities, such as customer demand, weather, market prices for energy and economic conditions. Measures that promote distributed energy resources, such as distributed generation, demand reduction and energy efficiency, also affect the volume of energy sales and deliveries.

Pursuant to their rate plans, the Utilities have recovered from customers a portion of the tax liability they will pay in the future as a result of temporary differences between the book and tax basis of assets and liabilities. These temporary differences affect the timing of cash flows, but not net income, as the Companies are required to record deferred tax assets and liabilities at the current corporate tax rate for the temporary differences. Pursuant to their rate plans, the Utilities recover from customers the amount of property taxes they will pay. The payment of property taxes by the Utilities affects the timing of cash flows and increases the amount of short-term borrowings issued by the Utilities when property taxes are due and as property taxes increase, but generally does not impact net income. See Note J to the Second Quarter Financial Statements.

In general, the Utilities suspended service disconnections during the COVID-19 pandemic and have since resumed such activities in accordance with applicable law. 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. A continued slow recovery of accounts receivable balances has impacted and is expected to continue to impact the Companies' liquidity. See “Aged Accounts Receivable Balances,” above.

Net income is the result of cash and non-cash (or accrual) transactions. Only cash transactions affect the Companies’ cash flows from operating activities. Principal non-cash charges or credits include depreciation, deferred income tax expense, amortizations of certain regulatory assets and liabilities and accrued unbilled revenue. Non-cash charges or credits may also be accrued under the revenue decoupling and cost reconciliation mechanisms in the Utilities’ New York electric and gas rate plans.

Net cash flows from operating activities for the six months ended June 30, 2026 for Con Edison were $845 million lower than in the 2025 period. The change in net cash flows for Con Edison primarily reflects:

•a decrease in accounts payable of $264 million;

•an increase in other receivables, net and other current assets of $262 million;

•higher taxes receivable of $197 million; and

•an increase in prepayments of $130 million.

Net cash flows from operating activities for the six months ended June 30, 2026 for CECONY were $934 million lower than in the 2025 period. The change in net cash flows for CECONY primarily reflects:

•higher accounts receivable from affiliated companies of $488 million;

•a decrease in accounts payable of $249 million; and

•an increase in other receivables, net and other current assets of $188 million.

Cash Flows Used in Investing Activities

The following table summarizes key components of Con Edison’s investing cash flows.

For the Six Months Ended June 30,

(Millions of Dollars)

2026

2025

Variance

INVESTING ACTIVITIES

Utility capital expenditures

$(2,473)

$(2,420)

$(53)

Cost of removal less salvage

(208)

(251)

Non-utility capital expenditures

(1)

—

Proceeds from sale of equity interest in Mountain Valley Pipeline, LLC

358

—

358

Proceeds from sale of Broken Bow II, net of cash and cash equivalents sold

—

(45)

Other investing activities

(30)

(28)

(2)

NET CASH FLOWS USED IN INVESTING ACTIVITIES

$(2,354)

$(2,655)

$301

Net cash flows used in investing activities for Con Edison were $301 million lower for the six months ended June 30, 2026 compared with the 2025 period. The change for Con Edison primarily reflects:

•the proceeds from the sale of Con Edison Transmission's equity interest in MVP of $358 million; and

•a decrease in cost of removal less salvage of $43 million.

Offset in part by

•an increase in utility capital expenditures of ($53 million); and

•prior year proceeds from the sale of Broken Bow II of ($45 million).

The following table summarizes key components of CECONY’s investing cash flows.

For the Six Months Ended June 30,

(Millions of Dollars)

2026

2025

Variance

INVESTING ACTIVITIES

Utility capital expenditures

$(2,246)

$(2,233)

$(13)

Cost of removal less salvage

(203)

(246)

NET CASH FLOWS USED IN INVESTING ACTIVITIES

$(2,449)

$(2,479)

$30

Net cash flows used in investing activities for CECONY were $30 million lower for the six months ended June 30, 2026 compared with the 2025 period. The change for CECONY primarily reflects:

•a decrease in cost of removal less salvage of $43 million.

Offset by

•an increase in utility capital expenditures of ($13 million).

Pursuant to their rate plans, the Utilities recover the cost of utility capital expenditures from customers, including an approved rate of return (before and after being placed in service and AFUDC before being placed in service). Increases in the amount of utility capital expenditures may temporarily increase the amount of short-term debt issued by the Utilities prior to the long-term financing of such amounts.

Cash Flows From Financing Activities

The following table summarizes key components of Con Edison’s financing cash flows.

For the Six Months Ended June 30,

(Millions of Dollars)

2026

2025

Variance

FINANCING ACTIVITIES

Net payment of short-term debt (Maturities 90 days or less)

$(554)

$(950)

$396

Payment of short-term debt (Maturities greater than 90 days)

(300)

—

(300)

Borrowing under term loan

—

200

(200)

Repayment of term loan

(500)

—

(500)

Issuance of long-term debt

1,300

—

1,300

Debt issuance costs

(17)

(1)

(16)

Common stock dividends

(624)

(576)

(48)

Issuance of common shares - public offering

884

1,308

(424)

Issuance of common shares for stock plans

NET CASH FLOWS FROM FINANCING ACTIVITIES

$223

$13

$210

Net cash flows from financing activities for Con Edison were $210 million higher for the six months ended June 30, 2026 compared with the 2025 period and reflect the following transactions:

•the issuance of long-term debt of $1,300 million. In June 2026, CECONY issued $450 million aggregate principal amount of 5.15 percent debentures, due 2036 and $850 million aggregate principal amount of 5.875 percent debentures, due 2056. See Note C to the Second Quarter Financial Statements; and

•a decrease in the net payment of short-term debt (maturities 90 days or less) of $396 million.

Offset by

•a decrease in the issuance of common shares - public offering of ($424 million);

•the repayment of a term loan of ($500 million) in the 2026 period;

•the payment of short-term debt (maturities greater than 90 days) of ($300 million) in the 2026 period; and

•the borrowing under a term loan of ($200 million) in the 2025 period.

The following table summarizes key components of CECONY’s financing cash flows.

For the Six Months Ended June 30,

(Millions of Dollars)

2026

2025

Variance

FINANCING ACTIVITIES

Net payment of short-term debt (Maturities 90 days or less)

$(460)

$(894)

$434

Payment of short-term debt (Maturities greater than 90 days)

(300)

—

(300)

Borrowing under term loan

—

200

(200)

Repayment of term loan

(500)

—

(500)

Issuance of long-term debt

1,300

—

1,300

Debt issuance costs

(17)

(1)

(16)

Capital contribution by Con Edison

1,114

1,250

(136)

Dividend to Con Edison

(617)

(568)

(49)

NET CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES

$520

$(13)

$533

Net cash flows from financing activities for CECONY were $533 million higher for the six months ended June 30, 2026 compared with the 2025 period and reflects the following transactions:

•a decrease in the net payment of short-term debt (maturities 90 days or less) of $434 million; and

Offset in part by

•the repayment of a term loan of ($500 million) in the 2026 period;

•the payment of short-term debt (maturities greater than 90 days) of ($300 million) in the 2026 period;

•the borrowing under a term loan of ($200 million) in the 2025 period;

•a decrease in the contributed equity by Con Edison of ($136 million); and

•an increase in the dividend to Con Edison of ($49 million).

Cash flows from financing activities of the Companies also reflect commercial paper issuances and repayments. The commercial paper amounts outstanding at June 30, 2026 and 2025 and the average daily balances for the six months ended June 30, 2026 and 2025 for Con Edison and CECONY were as follows:

2026

2025

(Millions of Dollars, except Weighted Average Yield)

Outstanding at June 30,

Daily

average

Outstanding at June 30,

Daily

average

Con Edison

$721

$816

$1,220

$914

CECONY

$480

$514

$800

$537

Weighted average yield

3.9

4.6

4.5

Capital Resources

For each of the Companies, the common equity ratio at June 30, 2026 and December 31, 2025 was:

Common Equity Ratio

(Percent of total capitalization)

June 30, 2026

December 31, 2025

Con Edison

48.9

48.6

CECONY

48.2

47.8

Assets, Liabilities and Equity

The Companies' assets, liabilities, and equity at June 30, 2026 and December 31, 2025 are summarized as follows.

CECONY

O&R

Con Edison

Transmission

Other (a)

Con Edison (b)

(Millions of Dollars)

2026

2025

2026

2025

2026

2025

2026

2025

2026

2025

ASSETS

Current assets

$6,633

$6,433

$331

$337

$51

$21

$(225)

$(41)

$6,790

$6,750

Investments

749

725

326

462

1,101

1,213

Net plant

53,409

51,861

3,693

3,540

(1)

57,104

55,403

Other noncurrent assets

10,496

10,297

551

521

416

417

11,464

11,237

Total Assets

$71,287

$69,316

$4,597

$4,420

$381

$488

$194

$379

$76,459

$74,603

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities

$4,795

$5,944

$356

$396

$18

$201

$256

$5,354

$6,614

Noncurrent liabilities

17,574

17,275

1,286

1,242

(61)

(347)

(208)

18,543

18,248

Long-term debt

25,351

24,060

1,492

1,491

—

26,843

25,551

Equity

23,567

22,037

1,463

1,291

349

531

340

331

25,719

24,190

Total Liabilities and Equity

$71,287

$69,316

$4,597

$4,420

$381

$488

$194

$379

$76,459

$74,603

(a) Other includes the parent company, Con Edison’s tax equity investments and consolidation adjustments.

(b) Represents the consolidated results of operations of Con Edison and its businesses.

CECONY

Current assets at June 30, 2026 were $200 million higher than at December 31, 2025. The change in current assets primarily reflects an increase in accounts receivable from affiliated companies ($195 million), and regulatory assets ($169 million), offset in part by a decrease in cash and temporary cash investments ($163 million). See Note B to the Second Quarter Financial Statements.

Net plant at June 30, 2026 was $1,548 million higher than at December 31, 2025. The change in net plant primarily reflects an increase in electric ($1,305 million), gas ($269 million), steam ($30 million) and general ($157 million) plant balances, and increase in construction work in progress ($212 million), offset by an increase in accumulated depreciation ($426 million).

Other noncurrent assets at June 30, 2026 was $199 million higher than at December 31, 2025. The change in other noncurrent assets primarily reflects an increase in pension and retiree benefits ($100 million), energy efficiency and other clean energy programs ($89 million), revenue taxes ($39 million), offset in part by a decrease in the regulatory asset for legacy meters ($10 million). See Note B, Note E and Note F to the Second Quarter Financial Statements.

Current liabilities at June 30, 2026 were $1,149 million lower than at December 31, 2025. The change in current liabilities primarily reflects a decrease in notes payable ($760 million) and the repayment of a term loan ($500 million), offset in part by an increase in regulatory liabilities ($238 million). See Note B and Note D to the Second Quarter Financial Statements.

Noncurrent liabilities at June 30, 2026 were $299 million higher than at December 31, 2025. The change in noncurrent liabilities primarily reflects increases in deferred income taxes and unamortized investment tax credits ($534 million), pensions and retiree benefits ($19 million) and asset retirement obligations ($10 million), offset in part by decreases in pension and other postretirement employee benefit deferrals ($112 million), late payment charge deferral ($91 million) and unrecognized other postretirement benefit cost ($90 million). See Note B and Note E to the Second Quarter Financial Statements.

Long-term debt at June 30, 2026 was $1,291 million higher than at December 31, 2025. The change in long-term debt primarily reflects the 2026 issuance of debentures ($1,300 million). See "Liquidity and Capital Resources - Cash Flows from Financing Activities" above and Note C to the Second Quarter Financial Statements.

Equity at June 30, 2026 was $1,530 million higher than at December 31, 2025. The change in equity primarily reflects net income for the six months ended June 30, 2026 ($1,029 million), capital contributions from Con Edison ($1,114 million) in 2026 and a change in stock awards ($4 million), offset in part by common stock dividends to Con Edison ($617 million) in 2026.

O&R

Net plant at June 30, 2026 was $153 million higher than at December 31, 2025. The change in net plant primarily reflects an increase in electric ($90 million), gas ($55 million) and general ($11 million) plant balances, and construction work in progress ($39 million), offset by an increase in accumulated depreciation ($42 million).

Other noncurrent assets at June 30, 2026 were $30 million higher than at December 31, 2025. The change in other noncurrent assets primarily reflects an increase in regulatory assets ($23 million), pension and retiree benefits ($4 million) and other deferred charges and noncurrent assets ($4 million).

Current liabilities at June 30, 2026 were $40 million lower than at December 31, 2025. The change in current liabilities primarily reflects a decrease in accounts payable ($38 million) and accrued taxes to affiliated companies ($4 million).

Noncurrent liabilities at June 30, 2026 were $44 million higher than at December 31, 2025. The change in noncurrent liabilities primarily reflects an increase in deferred income taxes and unamortized investment tax credits ($29 million), regulatory liabilities ($12 million) and other deferred credits and noncurrent liabilities ($3 million), offset in part by fair value of derivative liabilities ($2 million).

Equity at June 30, 2026 was $172 million higher than at December 31, 2025. The change in equity primarily reflects net income for the six months ended June 30, 2026 ($59 million) and capital contributions from Con Edison ($150 million) in 2026, offset in part by common stock dividends to Con Edison ($35 million) in 2026 and other comprehensive loss ($2 million).

Con Edison Transmission

Current assets at June 30, 2026 were $30 million higher than at December 31, 2025. The increase in current assets primarily reflects higher tax receivable associated with the sale of Con Edison Transmission's equity interest in MVP ($30 million).

Investments at June 30, 2026 were $136 million lower than at December 31, 2025. The decrease in investments primarily reflects the sale of the equity interest in MVP ($168 million) offset in part by additional investment in and earnings from New York Transco ($32 million).

Current liabilities at June 30, 2026 were $16 million lower than at December 31, 2025. The decrease in current liabilities primarily reflects transaction costs associated with the sale of the equity interest in MVP that were settled in January 2026 ($16 million).

Noncurrent liabilities at June 30, 2026 were $91 million higher than at December 31, 2025. The change in noncurrent liabilities primarily reflects the increase in accumulated deferred income taxes ($81 million) and reversal of the regulatory asset for future income taxes ($11 million) related to the sale of the equity interest in MVP.

Equity at June 30, 2026 was $182 million lower than at December 31, 2025. The change in equity primarily reflects common stock dividends to Con Edison ($332 million), offset in part by net income for the six months ended June 30, 2026 ($150 million).

Con Edison Transmission

The following table presents Con Edison Transmission's ownership interests in New York Transco's electric transmission projects.

Ownership Interest

In-Service Date/Anticipated

Base Return on Common Equity (ROE)

Common Equity Ratio

Transmission Owner Transmission Solutions (TOTS) (a)

45.7%

2016

9.99% plus 0.50% = 10.49%

54%

New York Energy Solution (NYES) (b)

45.7%

2023/2025

9.99% plus 0.50% to 1.00% = 10.49% to 10.89% (c)

54%

Propel NY Energy (d)

41.7% of New York Transco's share

2030

10.3% plus 1% = 11.3%

53%

(a)TOTS is a group of three electric power bulk transmission projects ($217 million total cost) constructed on the New York bulk transmission system to increase transfer capability between upstate and downstate New York.

(b)The NYES project was constructed to relieve transmission congestion between upstate and downstate (estimated cost of approximately $800 million).

(c)Includes a cost containment reduction.

(d)Propel NY Energy, a project that is under development jointly with the NYPA, is 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. New York Transco’s share of the estimated cost of the Propel NY Energy project is $2,200 million, excluding interconnection costs and the cost of projects expected to be built by local transmission owners, including CECONY. The siting, construction and operation of the project will require approvals and permits from the appropriate governmental agencies and authorities, including the NYSPSC.

Con Edison Transmission owns an interest of approximately 71.2 percent in Honeoye, a company that operates a gas storage facility in upstate New York and in which CECONY owns the remaining interest. In April 2026, CECONY and Con Edison Transmission entered into an agreement to sell their interests in 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 from the NYSPSC.

During the first quarter of 2026, Con Edison Transmission completed the sale of its approximately 6.6 percent equity interest in MVP to the two founding members of MVP for total aggregate consideration of $357.5 million, before certain closing adjustments and expenses. See "Investment in Mountain Valley Pipeline, LLC (MVP)" in Note A.

Environmental Matters

New York State's Clean Energy Goals

In May 2026, New York State enacted amendments to the Climate Leadership and Community Protection Act

(CLCPA) as part of the state’s fiscal year 2026–2027 budget. The amendments modify the CLCPA’s implementation

framework by, among other things, extending to December 31, 2028 the deadline for the New York State

Department of Environmental Conservation (NYSDEC) to promulgate implementing regulations and directs the NYSDEC to consider factors such as feasibility, affordability, economic competitiveness and reliability in developing any such regulations. The amendments also revise the state’s interim greenhouse gas emissions reduction framework by eliminating the emission reductions for 2030 and replacing them with emission reductions of 60 percent from 1990 levels by 2040. The amendments maintain the statutory requirement for the NYSDEC to promulgate rules establishing a statewide greenhouse gas emissions limit of an 85 percent reduction below 1990 levels by 2050, to the maximum extent feasible and cost-effective, and did not change the renewable energy targets. The Utilities are unable to predict the impact that the implementation of this law will have on them.

Energy Storage

In April 2026, the NYSPSC issued an order that approved modifications to New York utilities’ portfolio of Dynamic Load Management (DLM) programs and updated reporting requirements. The order authorized CECONY to expand its portfolio of DLM programs to include a Bring Your Own Battery (BYOB) program that enables customer-sited energy storage of less than 50 kW to participate in demand response and receive incentives for supporting the energy system during periods of high demand. The program is intended to reduce demand on the distribution system and improve reliability on high-demand days. CECONY will implement the BYOB program and file the associated tariff changes in accordance with the NYSPSC’s order.

Financial and Commodity Market Risks

The Companies are subject to various risks and uncertainties associated with financial and commodity markets. The most significant market risks include interest rate risk, commodity price risk and investment risk.

Interest Rate Risk

The Companies' interest rate risk primarily relates to new debt financing needed to fund capital requirements, including the capital expenditures of the Utilities and maturing debt securities, and variable-rate debt. Con Edison and its subsidiaries manage interest rate risk through the issuance of mostly fixed-rate debt with varying maturities and through opportunistic refinancing of debt. Con Edison and CECONY estimate that at June 30, 2026, a 10 percent increase in interest rates applicable to its variable rate debt would result in an increase in annual interest expense of $5 million and $4 million, respectively. Under CECONY’s current electric, gas and steam rate plans, variations in actual variable rate tax-exempt debt interest expense, including costs associated with the refinancing of the variable rate tax-exempt debt, are reconciled to levels reflected in rates.

Higher interest rates have resulted in increased interest expense on commercial paper, variable-rate debt and long-term debt issuances.

Commodity Price Risk

Con Edison’s commodity price risk primarily relates to the purchase and sale of electricity, gas and related derivative instruments. The Utilities apply risk management strategies to mitigate their related exposures. See Note N to the Second Quarter Financial Statements.

Con Edison estimates that, as of June 30, 2026, a 10 percent decline in market prices would result in a decline in fair value of $200 million for the derivative instruments used by the Utilities to hedge purchases of electricity and gas, of which $183 million is for CECONY and $17 million is for O&R. As of June 30, 2025, Con Edison estimated that a 10 percent decline in market prices would result in a decline in fair value of $153 million for the derivative instruments used by the Utilities to hedge purchases of electricity and gas, of which $141 million is for CECONY and $12 million is for O&R. Con Edison expects that any such change in fair value would be largely offset by directionally opposite changes in the cost of the electricity and gas purchased.

The Utilities do not make any margin or profit on the electricity or gas they sell. In accordance with provisions approved by state regulators, the Utilities generally recover from full-service customers the costs they incur for energy purchased for those customers, including gains and losses on certain derivative instruments used to hedge energy purchased and related costs. However, increases in electric and gas commodity prices may contribute to a

slower recovery of cash from outstanding customer accounts receivable balances. See “Electric Supply” and “Aged Accounts Receivable Balances,” above.

Investment Risk

The Companies’ investment risk relates to the investment of plan assets for their pension and other postretirement benefit plans. Con Edison's investment risk also relates to the investments of Con Edison Transmission that are accounted for under the equity method. See "Investments" in Note A to the Second Quarter Financial Statements.

The Companies’ current investment policy for pension plan assets includes investment targets of 20 to 24 percent equity securities, 55 to 65 percent debt securities and 14 to 22 percent alternatives. At June 30, 2026, the pension plan investments consisted of 22 percent equity securities, 59 percent debt securities and 19 percent alternatives.

For the Utilities’ pension and other postretirement benefit plans, regulatory accounting treatment is generally applied in accordance with the accounting rules for regulated operations. In accordance with the Statement of Policy issued by the NYSPSC and its current electric, gas and steam rate plans, CECONY defers for payment to or recovery from customers the difference between the pension and other postretirement benefit expenses and the amounts for such expenses reflected in rates. O&R also defers such difference pursuant to its New York rate plans.

Material Contingencies

For information concerning potential liabilities arising from the Companies’ material contingencies, see "Other Regulatory Matters" in Note B and Notes G and H to the Second Quarter Financial Statements.

Mentions · how they’re counted

Category	Underlined	Word counter	Model’s count
AI AI, artificial intelligence, generative AI, machine learning, large language model, LLM	0	0	0
Layoffs layoffs, RIF, headcount reduction, workforce optimization, restructuring	0	—	0
Recession recession, downturn, contraction, slowdown	0	0	0
Tariffs tariff, trade war, trade barriers, trade restrictions, trade policy	9	9	5
Buybacks share repurchase, buyback program	0	—	0

Underlines use the same word lists the scores use. AI, recession and tariffs follow Palanor’s word counter, so those counts match it exactly on the same text. Layoffs and buybacks use the terms the model was given. The model’s count is an estimate by meaning, not by string, so it can differ from the underlines.

Source: SEC EDGAR · public domain · Highlights by Palanor