Regulatory Matters (Tables)

6 Months Ended

Jun. 30, 2026

Schedule of Utilities Rate Plans

The following table contains a summary of the terms of the distribution rate plan.

RECO

Effective period

July 2026

Base rate changes

$15.25 million

Amortization to income of net regulatory (assets) and liabilities

$8.7 million net assets over three years including $8.1 million of deferred storm costs.

$6.2 million over ten years for deferred costs associated with the electric vehicle program

Recoverable energy costs

Current rate recovery of purchased power costs.

Cost reconciliations

Reconciliation of uncollectible accounts, Demand Side Management and Clean Energy Program, Storm Costs Reconciliation (a)

Average rate base

$330.3 million

Weighted average cost of capital (after-tax)

7.14 percent

Authorized return on common equity

9.6 percent

Cost of long-term debt

4.82 percent

Common equity ratio

48.51 percent

(a) The rate plan stipulation includes a base rate allowance of $2.7 million annually ($1.4 million for the last six months of 2026) for routine storm and weather-related expenses that do not qualify as major event storm costs. RECO is responsible for non-major storm costs above the base allowance up to an additional $1.3 million annually, after which excess costs may be deferred until the next base rate case. Storm costs associated with a major storm event may be deferred if incremental costs are $0.8 million or greater.

Schedule of Regulatory Assets

Regulatory assets and liabilities at June 30, 2026 and December 31, 2025 were comprised of the following items:


	Con Edison		CECONY
(Millions of Dollars)	2026	2025	2026	2025
Regulatory assets
Energy efficiency and other clean energy programs (a)	$2,095	$1,994	$1,982	$1,893
Environmental investigation and remediation costs	1,079	1,079	988	987
Customer account deferrals (b)	997	1,089	993	1,084
Revenue taxes	680	638	650	611
Legacy meters	372	382	360	370
Property tax reconciliation (c)	121	101	111	97
Deferred storm costs (d)	78	85	12	1
Deferred derivative losses-long-term	24	18	23	15
Pension and other postretirement employee benefits deferrals	18	—	—	—
Unrecognized pension and other postretirement costs (f)	7	4	—	—


Other	210	209	175	177
Regulatory assets - noncurrent	5,681	5,599	5,294	5,235
Recoverable energy cost	184	6	184	5
Deferred derivative losses - short term	87	97	80	90
Regulatory assets - current	271	103	264	95
Total Regulatory Assets	$5,952	$5,702	$5,558	$5,330
Regulatory liabilities
Allowance for cost of removal less salvage (e)	$1,747	$1,686	$1,523	$1,468
Future income tax*	1,093	1,120	982	1,015
Unrecognized other postretirement benefit cost (f)	781	873	716	806
Pension and other postretirement employee benefit deferrals	252	356	201	313
Net unbilled revenue deferrals	232	397	232	397
Late payment charge deferral	100	192	100	191
Deferred derivative gains – long term	142	119	132	109
System benefit charge carrying charge	103	108	95	100
Storm reserve passback	64	80	64	80

Settlement of prudence proceeding (g)	7	8	7	8
Other	603	435	555	392
Regulatory liabilities - noncurrent	5,124	5,374	4,607	4,879
Deferred derivative gains	296	165	275	152
Revenue decoupling mechanism liabilities	189	13	163	—
Refundable energy costs current	49	71	5	53
Regulatory liabilities - current	534	249	443	205
Total Regulatory Liabilities	$5,658	$5,623	$5,050	$5,084

* See "Other Regulatory Matters" above.

(a) Energy Efficiency and Other Clean Energy Programs represent programs designed to increase energy efficiency achievements and other clean energy transformation efforts.

(b) Customer account deferrals include (1) deferrals under CECONY and O&R's electric and gas rate plans for the reconciliation of write-offs of customer accounts receivable balances to amounts reflected in rates as well as for increases to the allowance for uncollectible accounts receivable and (2) deferral related to the arrears relief programs. Amounts deferred under the arrears relief programs were $227.7 million and immaterial for CECONY and O&R at June 30, 2026, respectively, and $262.9 million and $0.8 million at December 31, 2025, respectively, and receive a return at the pre-tax weighted average cost of capital. The recovery period for the CECONY arrears relief programs will end in 2033.

(c) Property tax reconciliation represents the amount deferred between actual property taxes incurred and the level included in rates subject to the provisions of the respective rate plans.

(d) Deferred storm costs represent response and restoration costs, other than capital expenditures, in connection with major storms that were deferred by the Utilities.

(e) Allowance for cost of removal less salvage represents cash previously collected from customers to fund future anticipated removal expenditures.

(f) Unrecognized pension and other postretirement costs represent the deferrals associated with the accounting rules for retirement benefits.

(g) Settlement of prudence proceeding represents the remaining amount to be credited to customers pursuant to a Joint Proposal, approved by the NYSPSC in April 2016, with respect to the prudence of certain CECONY expenditures and related matters.

Schedule of Regulatory Liabilities