Consolidated Edison Inc. Files 10-Q for Q1 2024, Addresses New Climate Disclosure Rules

TL;DR

<b>Consolidated Edison Inc. filed its Q1 2024 10-Q, noting the SEC's new climate disclosure rule is temporarily stayed due to litigation.</b>

AI Summary

CONSOLIDATED EDISON INC (ED) filed a Quarterly Report (10-Q) with the SEC on May 2, 2024. Consolidated Edison Inc. filed its 10-Q report for the period ending March 31, 2024. The SEC issued a final rule in March 2024 requiring enhanced climate-related disclosures in annual reports. This new rule is currently subject to litigation, with challenges pending in the U.S. Court of Appeals for the Eighth Circuit. The SEC has temporarily stayed the rule pending judicial review. Consolidated Edison is evaluating the rule's requirements and monitoring legal developments, expecting no material impact on operations, financial position, or liquidity.

Why It Matters

For investors and stakeholders tracking CONSOLIDATED EDISON INC, this filing contains several important signals. The company is actively assessing the implications of new SEC climate disclosure rules, which could significantly alter reporting requirements for future filings. The pending litigation and potential SEC actions introduce uncertainty regarding the final form and implementation timeline of these climate disclosures.

Risk Assessment

Risk Level: — CONSOLIDATED EDISON INC shows moderate risk based on this filing. The new climate disclosure rule is subject to litigation, creating uncertainty about its final requirements and implementation, which could impact reporting obligations.

Analyst Insight

Monitor legal developments regarding the SEC's climate disclosure rule to understand potential future reporting impacts.

Key Numbers

• 2024-03-31 — Reporting Period End Date (The end date for the 10-Q filing.)
• 2024-05-02 — Filing Date (The date the 10-Q was filed.)

Key Players & Entities

• Consolidated Edison Inc. (company) — Filer of the 10-Q report.
• SEC (regulator) — Issued the final rule on climate-related disclosures.
• United States Court of Appeals for the Eight Circuit (regulator) — Where challenges to the SEC's climate disclosure rule are pending.
• March 2024 (date) — Month and year the SEC issued the final climate disclosure rule.
• 2025 (date) — Year the Companies would be required to provide additional disclosures in the MD&A section.
• 2026 (date) — Year the rule creates a new section for Scope 1 and Scope 2 greenhouse gas emission disclosures.

FAQ

Risk Factors

• New Climate-Related Disclosure Rule [medium — regulatory]: The SEC's new climate disclosure rule is subject to litigation and has been temporarily stayed, creating uncertainty about its final requirements and implementation.

Industry Context

Consolidated Edison operates in the electric and other services industry, a sector increasingly facing regulatory scrutiny regarding environmental and climate-related impacts.

Regulatory Implications

The SEC has issued a new rule mandating climate-related disclosures, but it is currently facing legal challenges and has been temporarily stayed pending judicial review.

What Investors Should Do

1. Review the full 10-Q filing for detailed financial information and operational updates.
2. Stay informed about the legal proceedings concerning the SEC's climate disclosure rule.
3. Assess the potential long-term impact of climate disclosure requirements on Consolidated Edison's reporting and strategy.

Key Dates

• 2024-03-31: Quarterly Period End — The period covered by the 10-Q filing.
• 2024-05-02: Filing Date — The date the 10-Q was officially submitted to the SEC.

Glossary

MD&A

Management Discussion and Analysis (A section in SEC filings where management discusses financial condition and results of operations, which will be impacted by new climate disclosure rules.)

Scope 1 and Scope 2 greenhouse gas emissions

Direct emissions from owned or controlled sources (Scope 1) and indirect emissions from purchased electricity, steam, heating, or cooling (Scope 2). (These emissions will require specific disclosures under the new SEC rule, starting in 2026.)

Year-Over-Year Comparison

This filing is a standard 10-Q for the first quarter of 2024 and primarily addresses the regulatory environment concerning new climate disclosure rules.

Filing Documents

• ed-20240331.htm (10-Q) — 2368KB
• ed-20240331xex1013.htm (EX-10.1(3)) — 15KB
• ed-20240331xex1014.htm (EX-10.1(4)) — 156KB
• ed-20240331xex1015.htm (EX-10.1(5)) — 14KB
• ed-20240331xex1016.htm (EX-10.1(6)) — 24KB
• ed-20240331xex1017.htm (EX-10.1(7)) — 13KB
• ed-20240331xex3111.htm (EX-31.1(1)) — 9KB
• ed-20240331xex3112.htm (EX-31.1(2)) — 9KB
• ed-20240331xex3121.htm (EX-31.2(1)) — 9KB
• ed-20240331xex3122.htm (EX-31.2(2)) — 9KB
• ed-20240331xex3211.htm (EX-32.1(1)) — 3KB
• ed-20240331xex3212.htm (EX-32.1(2)) — 3KB
• ed-20240331xex3221.htm (EX-32.2(1)) — 3KB
• ed-20240331xex3222.htm (EX-32.2(2)) — 3KB
• image_0.jpg (GRAPHIC) — 23KB
• image_01.jpg (GRAPHIC) — 85KB
• 0001047862-24-000030.txt (&nbsp;) — 13743KB
• ed-20240331.xsd (EX-101.SCH) — 98KB
• ed-20240331_cal.xml (EX-101.CAL) — 130KB
• ed-20240331_def.xml (EX-101.DEF) — 795KB
• ed-20240331_lab.xml (EX-101.LAB) — 965KB
• ed-20240331_pre.xml (EX-101.PRE) — 935KB
• ed-20240331_htm.xml (XML) — 1958KB

—Financial Information

PART I—Financial Information

Financial Statements (Unaudited)

ITEM 1 Financial Statements (Unaudited) Con Edison Consolidated Income Statement 7 Consolidated Statement of Comprehensive Income 8 Consolidated Statement of Cash Flows 9 Consolidated Balance Sheet 11 Consolidated Statement of Equity 13 CECONY Consolidated Income Statement 14 Consolidated Statement of Comprehensive Income 15 Consolidated Statement of Cash Flows 16 Consolidated Balance Sheet 17 Consolidated Statement of Shareholder's Equity 19 Notes to the Financial Statements (Unaudited) 20

Management's Discussion and Analysis of Financial Condition and Results of Operations

ITEM 2 Management's Discussion and Analysis of Financial Condition and Results of Operations 45

Quantitative and Qualitative Disclosures About Market Risk

ITEM 3 Quantitative and Qualitative Disclosures About Market Risk 65

Controls and Procedures

ITEM 4 Controls and Procedures 66

—Other Information

PART II—Other Information 67

Legal Proceedings

ITEM 1 Legal Proceedings 67

Risk Factors

ITEM 1A Risk Factors 67

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This report contains forward-looking statements that are intended to qualify for the safe-harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are statements of future expectations and not facts. Words such as "forecasts," "expects," "estimates," "anticipates," "intends," "believes," "plans," "will," "target," "guidance," "potential," "goal," "consider" and similar expressions identify forward-looking statements. The forward-looking statements reflect information available and assumptions at the time the statements are made, and accordingly speak only as of that time. Actual results or developments might differ materially from those included in the forward-looking statements because of various factors such as those identified in reports the Companies have filed with the Securities and Exchange Commission, including, but not limited to: the Companies are extensively regulated and are subject to substantial penalties; the Utilities' rate plans may not provide a reasonable return; the Companies may be adversely affected by changes to the Utilities' rate plans; the failure of, or damage to, the Companies' facilities could adversely affect the Companies; a cyber attack could adversely affect the Companies; the failure of processes and systems, the failure to retain and attract employees and contractors, and their negative performance could adversely affect the Companies; the Companies are exposed to risks from the environmental consequences of their operations, including increased costs related to climate change; Con Edison's ability to pay dividends or interest depends on dividends from its subsidiaries; changes to tax laws could adversely affect the Companies; the Companies require access to capital markets to satisfy funding requirements; a disruption in the wholesale energy markets, increased commodity costs or

View Full Filing

View this 10-Q filing on SEC EDGAR