CECONY – Steam

Effective period

Yr. 1 – $13 million (a)

Yr. 2 – $42 million (a)

Yr. 3 – $39 million (a)

Yr. 1 – $ 143 million

Yr. 2 – $ 127 million

Yr. 3 – $ 126 million

Yr. 1 – $ 8 million (b)

Yr. 2 – $ 8 million (b)

Yr. 3 – $ 8 million (b)

Continuation of a weather normalization adjustment to reflect normal weather conditions during the heating season.

Continuation of current rate recovery of purchased power and fuel costs.

Potential charges if certain performance targets relating to service, reliability, safety and other matters are not met:

Yr. 1 – $4.3 million

Yr. 2 – $4.5 million

Yr. 3 – $4.7 million

Reconciliation of expenses for pension and other postretirement benefits, variable-rate debt, property taxes (d), municipal infrastructure support costs (e) and environmental site investigation and remediation to amounts reflected in rates (f).

Yr. 1 – $2,147 million

Yr. 2 – $2,165 million

Yr. 3 – $2,145 million

Yr. 1 – $2,118 million

Yr. 2 – $2,234 million

Yr. 3 – $2,311 million

Yr. 1 – 7.07 percent

Yr. 2 – 7.14 percent

Yr. 3 – 7.19 percent

9.5 percent

Most earnings above an annual earnings threshold of 10 percent are to be applied to reduce regulatory assets for environmental remediation and other costs accumulated in the rate year.

Yr. 1 – 4.86 percent

Yr. 2 – 5.00 percent

Yr. 3 – 5.10 percent

48 percent

The base rate increases shown above will be implemented on a shaped bill impact basis resulting in a consistent total bill impact of 3.5% each year with corresponding base rate increases of $26.6 million in Yr. 1; $27.5 million in Yr. 2; and $28.5 million in Yr. 3. New rates will be effective as of November 1, 2026. CECONY will begin billing customers at the new shaped rate once the Joint Proposal is approved by the NYSPSC. Any shortfall in revenues due to the timing of billing to customers will be collected through a surcharge.

Amounts reflect amortization of the protected portion of the regulatory liability for excess deferred income taxes allocable to CECONY’s steam customers over the remaining lives of the related assets ($6 million in Yr. 1; $7 million in Yr. 2; and $7 million in Yr. 3).

$0.5 million in annual steam revenue requirement ($1.5 million over three years) will be recovered through a rate adjustment mechanism, subject to refund to customers relating to the NYSDPS’ review of CECONY’s steam main welds.

If the level of actual expense for property taxes, excluding the effect of property tax refunds, varies in any rate year from the projected level provided in rates, the full amount of the variation will be recovered from or credited to customers via surcharge/surcredit. Surcharge recoveries will be subject to an annual cap that produces no more than a half percent (0.5 percent) total customer bill impact (estimated to be $3.8 million, $3.9 million, $4.0 million for Yr. 1, Yr. 2 and Yr. 3, respectively). Amounts in excess of the annual surcharge cap in a specific year may be rolled forward for recovery and will count towards the following year’s surcharge cap. Amounts in excess of the surcharge cap will be deferred as a regulatory asset for recovery in CECONY’s next steam base rate case.

In general, if actual expenses for municipal infrastructure support (other than company labor) are below the amounts reflected in rates, CECONY will defer the difference for credit to customers, and if the actual expenses are above the amount reflected in rates, CECONY will defer for recovery from customers 80 percent of the difference subject to a maximum deferral, subject to certain conditions, of 30 percent of the amount reflected in the rate plan.

In addition, the NYSDPS continues its focused operations audit to investigate CECONY’s income tax accounting. Any adjustment to CECONY’s income tax accounting ordered by the NYSPSC is expected to be refunded to or collected from customers, as determined by the NYSPSC.