QuickLinks -- Click here to rapidly navigate through this document

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.

FORM U-3A-2

Statement by Holding Company Claiming Exemption
Under Rule U-3A-2 from the Provisions of the
Public Utility Holding Company Act of 1935

To Be Filed Annually Prior to March 1

CONSOLIDATED EDISON, INC.

hereby files with the Securities Exchange Commission, pursuant to Rule 2, its statement claiming exemption as a holding company from the provisions of the Public Utility Holding Company Act of 1935, and submits the following information:

1.
Name, State of organization, location and nature of business of claimant and every subsidiary thereof, other than any exempt wholesale generator (EWG) or foreign utility company in which claimant directly or indirectly holds an interest.

        Consolidated Edison, Inc. ("Claimant") is a corporation organized and existing under the laws of the State of New York. Claimant is a holding company, which acquires and hold securities of other corporations. Claimant's principal place of business is 4 Irving Place, New York, N.Y. 10003. Claimant has the following subsidiaries:

A. Consolidated Edison Company of New York, Inc. ("Con Edison") is a public utility organized and existing as a corporation under the laws of the State of New York. Con Edison supplies electric service in all of New York City (except part of Queens) and most of Westchester County, New York, an approximately 660 square mile service area with a population of more than 8 million. It also supplies gas in Manhattan, The Bronx and parts of Queens and Westchester, and steam in part of Manhattan. All of Con Edison's Common Stock is held by Claimant. Con Edison's principal place of business is 4 Irving Place, New York, N.Y. 10003. Con Edison has the following subsidiaries:

        1.     Davids Island Development Corp. ("DIDCO") is organized and existing as a corporation under the laws of the State of New York. It owns real property, acquired as a possible site for an electric generating plant, in Dutchess and Columbia Counties in New York State. It is in the process of disposing of the property. It is a wholly-owned subsidiary of Con Edison. Its principal place of business is 4 Irving Place, New York, N.Y. 10003.

        2.     D.C.K. Management Corp. ("DCK") is a corporation organized and existing as a corporation under the laws of the State of New York. It owns real property in the City of New York. It is a wholly-owned subsidiary of Con Edison. Its principal place of business is 4 Irving Place New York, N.Y. 10003.

        3.     Honeoye Storage Corporation ("Honeoye") a corporation organized and existing under the laws of the State of New York. It was incorporated to own and operate a gas storage facility in upstate New York. It is 28.81 percent owned by Con Edison.

        4.     Steam House Leasing LLC ("SHL"), a Delaware limited liability company, a wholly owned subsidiary of Con Edison that leases a steam generating plant that produces steam for Con Edison's steam distribution business. Its principal place of business is 4 Irving Place New York, N.Y. 10003.

B. Orange and Rockland Utilities, Inc. ("O&R") is a public utility organized and existing as a corporation under the laws of the State of New York. O&R provides service to over 200,000 electric and almost 120,000 gas customers in New York in a service area covering all of Rockland County, most of Orange County, and part of Sullivan County. All of O&R's Common Stock is held by Claimant. O&R's principal place of business is One Blue Hill Plaza, Pearl River, N.Y. 10965. O&R has the following subsidiaries:


        1.     Rockland Electric Company ("RECO") is a public utility organized and existing as a corporation under the laws of the State of New Jersey. RECO supplies electric service to about 70,000 customers in New Jersey in the northern parts of Bergen and Passaic Counties and small areas in northern Sussex County. All of RECO's Common Stock is held by O&R. RECO's principal place of business is 82 East Allendale Avenue, Saddle River, N. J. 07458. RECO has the following subsidiaries:

        2.     Pike County Light & Power Company ("Pike"), a public utility organized and existing as a corporation under the laws of Pennsylvania. Pike supplies electricity to about 4,200 customers and gas to about 1,000 customers in the northeastern corner of Pike County, Pennsylvania. All of Pike's Common Stock is held by O&R. Pike's principal place of business is c/o Beecher, Rose & Klemeyer, 402 Broad Street, Milford, Pennsylvania 18337.

        3.     Clove Development Corporation ("Clove") is an inactive real estate sales company, organized and existing as a corporation under the laws of New York. Clove no longer owns any real estate; its sole assets are cash and mortgage receivables. All of Clove's common stock is held by O&R. Clove's principal place of business is One Blue Hill Plaza, Pearl River, N.Y. 10965.

        4.     O&R Development, Inc. ("ORDEVCO"), is a commercial real estate development company, organized and existing as a corporation under the laws of Delaware, whose principal asset is land located at the Interchange Commerce Center in Harriman, New York. All of ORDEVCO's common stock is held by O&R. ORDEVCO's principal place of business is One Blue Hill Plaza, Pearl River, N.Y. 10965.

C. Consolidated Edison Solutions, Inc. ("CES") is organized and existing as a corporation under the laws of the State of New York. It is in the business of providing wholesale and retail energy and related services. It is a wholly-owned subsidiary of Claimant. Its principal place of business is 701 Westchester Avenue, Suite 300 East, White Plains, N.Y. 10604. CES has the following subsidiary:

        1.     CES/AEI/OLF Cogeneration L.L.C. ("CAO"), a New York limited liability company in which CES has a 50% interest. CAO was formed to own, operate, and maintain a distributed generation facility located in Bronx, New York. CAO's principal place of business is c/o Consolidated Edison Solutions, Inc., 701 Westchester Avenue, Suite 300 East, White Plains, New York, 10604.

D. Consolidated Edison Development, Inc. ("CEDI") is organized and existing as a corporation under the laws of New York. It is in the business of investing in foreign and domestic energy and other infrastructure projects and marketing of Con Edison's technical services. It is a wholly-owned subsidiary of Claimant. Its principal place of business is 111 Broadway, 16th Floor, New York, N.Y. 10006. CEDI has the following subsidiaries:

        1.     Con Edison Development Guatemala, Ltd. ("CEDG") a corporation organized and existing under the laws of the Cayman Islands. It is in the business of investing in energy projects in Central America. It is a wholly-owned subsidiary of CEDI. Its principal place of business is c/o Maples and Calder, Attorneys-at-Law, Ugland House, South Church Street, P.O. Box 309, George Town, Grand Cayman, Cayman Islands, British West Indies. CEDG has the following subsidiary:

        2.     Consolidated Edison Leasing, LLC (formerly, Consolidated Edison Leasing, Inc.—"CEL"), a limited liability company organized and existing under the laws of Delaware. CEL is a wholly-owned subsidiary of CEDI and has an investment in a leveraged lease transaction. CEL's principal place of business is c/o Consolidated Edison Development, 111 Broadway, 16th Floor, New York, New York 10006.

2


        3.     Con Edison Leasing, LLC. ("CELLLC"), a limited liability company organized and existing under the laws of Delaware. CELLLC is a wholly-owned subsidiary of CEDI and has an investment in a leveraged lease transaction. CELLLC's principal place of business is c/o Consolidated Edison Development, 111 Broadway, 16th Floor, New York, New York 10006.

        4.     CED Ada, Inc. ("CEDA"), a corporation organized and existing under the laws of the state of Delaware. CEDA, a wholly-owned subsidiary of CEDI, was organized to invest in a power plant in Michigan. CEDA's principal place of business is c/o Consolidated Edison Development, 111 Broadway, 16th Floor, New York, New York 10006. CEDA has the following subsidiary:

        5.     CED/SCS Newington, LLC ("CED/SCS"), a Delaware limited liability company, approximately 95% of which is owned by CEDI. CED/SCS's principal place of business is c/o Consolidated Edison Development, 111 Broadway, 16th Floor, New York, New York 10006. CED/SCS has the following subsidiary:

        6.     CED Generation Holding Company, LLC, a Delaware limited liability company ("CED Holding") wholly-owned by CEDI. CED Holding's principal place of business is c/o Consolidated Edison Development, 111 Broadway, 16th Floor, New York, New York 10006. CED Holding has the following subsidiaries:

        7.     Ocean Peaking Power, L.L.C., a Delaware limited liability company ("OPP"). OPP owns a 333 MW peaking power plant located adjacent to the site of the Lakewood generating plant. OPP's principal place of business is c/o Consolidated Edison Development, 111 Broadway, 16th Floor, New York, New York 10006. OPP is an EWG. See Item 4.

        8.     Consolidated Edison Energy Massachusetts, Inc. ("CEEMI"), a corporation organized and existing under the laws of Delaware, wholly-owned by CEDI. CEEMI was established for the purpose of owning and operating 290 MW of generation facilities acquired from Western Massachusetts Electric Company. CEEMI's principal place of business is c/o Consolidated Edison Development, 111 Broadway, 16th Floor, New York, New York 10006. CEEMI is an EWG. See Item 4.

3



        9.     CEDST, LLC ("CEDST"), a Delaware limited liability company, wholly-owned by CEDI. CEDST's principal place of business is c/o Consolidated Edison Development, 111 Broadway, 16th Floor, New York, New York 10006. CEDST has the following subsidiary:

        10.   CED Rock Springs, Inc. ("CEDRS"), a corporation organized and existing under the laws of Delaware, wholly-owned by CEDI. CEDRS owns a 333 MW electric generating facility located in Rock Springs, Maryland. CEDRS' principal place of business is c/o Consolidated Edison Development, 111 Broadway, 16th Floor, New York, New York 10006. CEDRS is an EWG. See Item 4.

        11.   Con Edison Development Acquisition and Finance, Ltd. ("CEDAF") a corporation organized under the laws of the Cayman Islands, wholly-owned by CEDI. CEDAF owns a ..01% interest in EPCA. CEDAF's principal place of business is Maples and Calder, Attorneys-at-Law, Ugland House, South Church Street, P.O. Box 309, George Town, Grand Cayman, Cayman Islands British West Indies. CEDAF has the following subsidiary:

        12.   CED Generation Holding Company II, LLC, a Delaware limited liability company ("CED Holding II"). CED Holding II's principal place of business is c/o Consolidated Edison Development, 111 Broadway, 16th Floor, New York, New York 10006. CED Holding II was organized in connection with a proposed corporate reorganization, which was never executed.

E. Consolidated Edison Energy, Inc. ("CEEI"), a corporation organized and existing under the laws of the State of New York. CEEI is an energy trading company that markets specialized energy supply services to wholesale customers. CEEI is a wholly-owned subsidiary of Claimant. CEEI's principal place of business is 701 Westchester Avenue, Suite 201 West, White Plains, N.Y. 10604. CEEI has the following subsidiary:

        1.     Competitive Shared Services, Inc. ("CSSI"), a corporation organized and existing under the laws of the State of New York. CSSI provides accounting and other services to CES, CEDI, CEEI and CEC Holding. CSSI's principal place of business is 701 Westchester Avenue, Suite 300 East, White Plains, N.Y. 10604.

F. Consolidated Edison Communications Holding Company, Inc. ("CEC Holding") is organized and existing as a corporation under the laws of New York. Its principal place of business is 55 Broad Street, New York, N.Y. 10004. CEC Holding has the following subsidiaries:

        1.     CEC Holding Member, Inc., ("CEC Member") a corporation organized and existing under the laws of New York, wholly-owned by CEC Holding. CEC Member is the non-managing member of CECLLC. Its principal place of business is 55 Broad Street, New York, N.Y. 10004.

        2.     Con Edison Communications, Inc. ("CECI") a corporation organized and existing under the laws of New York, wholly-owned by CEC Holding. CECI is the managing member of CECLLC. Its principal place of business is 55 Broad Street, New York, N.Y. 10004.

4


        3.     Con Edison Communications, LLC ("CECLLC"), a limited liability company organized and existing under the laws of the State of New York. CECLLC owns, leases, operates or invests in facilities used for telecommunications or otherwise competes in the telecommunications industry. CEC Member has a 99% interest and CECI has a 1% interest in CECLLC. Its principal place of business is 55 Broad Street, New York, N.Y. 10004. CECLLC has the following subsidiary:

G. Consolidated Edison, Inc. (originally incorporated as CWB Holdings, Inc.), a corporation organized and existing under the laws of Delaware and wholly-owned by Claimant which owns a 99% interest in each of N Acquisition LLC and X Holding LLC, each of which is a limited liability company organized and existing under the laws of Massachusetts. N Acquisition LLC owns the remaining 1% interest in X Holding LLC and X Holding LLC owns the remaining 1% interest in N Acquisition LLC. These entities were established in connection with Claimant's October 1999 agreement to acquire Northeast Utilities and are collectively referred to herein as the "Merger Subs." The Merger Subs' principal place of business is c/o Consolidated Edison, Inc., 4 Irving Place, New York, N.Y. 10003.

        2.     A brief description of the properties of claimant and each of its subsidiary public utility companies used for the generation, transmission, and distribution of electric energy for sale, or for the production, transmission, and distribution of natural or manufactured gas, indicating the location of principal generating plants, transmission lines, producing fields, gas manufacturing plants, and electric and gas distribution facilities, including all such properties which are outside the State in which claimant and its subsidiaries are organized and all transmission or pipelines which deliver or receive electric energy or gas at the borders of such State.

See Item 2 of Claimant's Annual Report on Form 10-K for the year ended December 31, 2003 (which information is incorporated herein by reference).

        3.     The following information for the last calendar year with respect to claimant and each of its subsidiary public utility companies:


 
  Electric
(kwhrs)
Retail

  Electric
(kwhrs)
Wholesale

  Gas (Dth)
Retail

Claimant   None   None   None
Con Edison   30,628,082,000   97,485,000   104,031,207
O&R   2,575,897,982   None   17,079,560
RECO   1,513,905,733   None   N/A
Pike   67,863,087   None   150,037

5



 
  Electric (kwhrs)
  Gas (Dth)
Claimant   None   None
Con Edison   None   None
O&R   None   None
RECO   None   N/A
Pike   None   None

 
  Electric (kwhrs)

  Gas (Dth)
 
Claimant   None   None  
Con Edison   94,825,000   227,688 *
O&R   None ** 60,488 **
RECO   None   N/A  
Pike   None   None  

 
  Electric (kwhrs)

  Gas (Dth)
 
Claimant   None   None  
Con Edison   23,299,000   174,204,212 *
O&R   None     *
RECO   213,278,516 ** N/A  
Pike   75,694,021 **   **

        4.     The following information for the reporting period with respect to claimant and each interest it holds directly or indirectly in an EWG or a foreign utility company, stating monetary amounts in United States dollars:

6


7


8



EXHIBIT A

A consolidating statement of income and surplus of the claimant and its subsidiary companies for the last calendar year, together with a consolidating balance sheet of claimant and its subsidiary companies as of the close of such calendar year.

The consolidating financial statements are attached hereto as Exhibit A.


EXHIBIT B

An organizational chart showing the relationship of each EWG or foreign utility company to associate companies in the holding-company system.

An organization chart is attached hereto as Exhibit B.

The above-named claimant has caused this statement to be duly executed on its behalf by its authorized officer on this 26th day of February 2004.

    CONSOLIDATED EDISON, INC.

 

 

By:

/s/  
EDWARD J. RASMUSSEN      
     
Edward J. Rasmussen
Vice President and Controller

Name, title, and address of officer to whom notices and correspondence concerning this statement should be addressed:

Peter J. Barrett
Associate General Counsel/Assistant Secretary
Consolidated Edison Company of New York, Inc.
4 Irving Place
New York, N.Y. 10003

9



CEI Consolidating Balance Sheet

December 31, 2003

 
  CEI
Holding

  CECoNY
Consolidated

  Orange and
Rockland Utilities,
Inc.

  Con Edison
Communications
Consolidated

  Con Edison
Development

  Con Edison
Energy

  Con Edison
Solutions

  Consolidation
Entries

  Non-Regulated
Eliminations

  CEI
Eliminations

  Consolidated
Edison, Inc.

 
Utility Plant                                              
Utility Plant     15,866,682,821.90   1,209,975,410.67                 17,076,658,232.57  
Accumulated Depreciation     (3,696,304,964.06 ) (372,891,347.37 )               (4,069,196,311.43 )
Construction Work In Progress     1,247,188,435.43   29,319,082.26                 1,276,507,517.69  
   
 
 
 
 
 
 
 
 
 
 
 
  Net Utility Plant     13,417,566,293.27   866,403,145.56                 14,283,969,438.83  
   
 
 
 
 
 
 
 
 
 
 
 
Non-Utility Plant                                              
Unregulated Generating Assets, Less Accumulated Depreciation           855,313,536.15       18,180,446.88       873,493,983.03  
Non-Utility Property Less Accumulated Depreciation     25,493,490.23   391,935.81   21,586,094.06   (199,006.59 ) 1,802,829.73   6,467,285.93         55,542,629.17  
Construction Work in Progress         8,549,403.94   3,534,365.77             12,083,769.71  
   
 
 
 
 
 
 
 
 
 
 
 
  Non-Utility Plant     25,493,490.23   391,935.81   30,135,498.00   858,648,895.33   1,802,829.73   6,467,285.93   18,180,446.88       941,120,381.91  
   
 
 
 
 
 
 
 
 
 
 
 
Current Assets                                              
Cash and Temporary Investments   786,749.45   32,690,645.79   8,674,230.72   (196,886.23 ) 8,243,951.02   484,072.00   (1,400,845.61 )       49,281,917.14  
Restricted Cash       800,000.00     17,070,567.61             17,870,567.61  
Accounts Receivable—Customers, Less Allowance for Uncollectible     691,631,752.72   57,203,955.63   3,789,026.94       37,753,441.45         790,378,176.74  
Other Accounts Receivable Less Allowance for Uncollectible   262,256.93   104,669,540.11   7,610,351.85   24,907.32   7,944,426.85   62,881,688.49   906,589.26         184,299,760.81  
Receivable from Affiliated Companies   7,683,904.28   28,301,782.28   11,359,149.46     9,726,685.92   4,445,866.98   4,294,558.64     (15,287,784.51 ) (50,524,163.05 )  
Accrued Unbilled Revenue       18,049,342.67         42,751,556.59         60,800,899.26  
Fuel, at Average Cost     23,577,761.09       9,006,561.75             32,584,322.84  
Gas In Storage     115,372,713.78   28,843,178.46       3,033,741.81   2,365,356.67         149,614,990.72  
Materials and Supplies, at Average Cost     88,592,773.28   5,975,226.17     5,611,358.46             100,179,357.91  
Prepayments     73,710,272.46   17,352,117.14   1,151,860.13   3,810,058.23   1,034,770.30   412,804.97         97,471,883.23  
Special Deposits   815,724.69   52,594,058.18   7,000.00                 53,416,782.87  
Other Current Assets     6,161,327.72   10,143,479.55   100,397.95     34,229,085.08   11,388,243.25     (6,212,339.00 )   55,810,194.55  
   
 
 
 
 
 
 
 
 
 
 
 
  Current Assets   9,548,635.35   1,217,302,627.41   166,018,031.65   4,869,306.11   61,413,609.84   106,109,224.66   98,471,705.22     (21,500,123.51 ) (50,524,163.05 ) 1,591,708,853.68  
   
 
 
 
 
 
 
 
 
 
 
 
Other Investments                                              
Other Investments—Other   6,040,070.05   3,363,067.20     1.00   238,268,897.22           (0.85 ) 247,672,034.62  
Investment in Subsidiaries   7,520,946,390.95                   (7,520,946,390.95 )  
   
 
 
 
 
 
 
 
 
 
 
 
Other Investments   7,526,986,461.00   3,363,067.20     1.00   238,268,897.22           (7,520,946,391.80 ) 247,672,034.62  
   
 
 
 
 
 
 
 
 
 
 
 
Deferred Charges, Regulatory Assets and Noncurrent Assets                                      
Goodwill   409,404,213.00               (3,602,672.94 )     405,801,540.06  
Intangible Assets           108,823,399.00     2,175,541.72         110,998,940.72  
Prepaid Pension Costs     1,257,126,486.41                   1,257,126,486.41  
Regulatory Assets:                                              
  Future Federal Income Taxes     588,571,000.00   39,941,168.00                 628,512,168.00  
  Recoverable Energy Costs     176,429,924.75   87,194,390.12                 263,624,314.87  
  Sale of Nuclear Generating Plant     159,263,334.91                   159,263,334.91  
  Real Estate Sale Cost—First Avenue Properties     138,056,147.62                   138,056,147.62  
  Deferred Retirement Program Costs     33,094,226.78   44,274,099.22                 77,368,326.00  
  Deferred Environmental Remediation Reserve Costs     115,502,073.92   38,664,464.64                 154,166,538.56  
  Accrued Unbilled Gas Revenue     43,594,000.00                   43,594,000.00  
  Worker's Compensation     51,215,816.36                   51,215,816.36  
  Deferral Asbestos—Related Reserve Costs     37,700,000.00   1,083,200.00                 38,783,200.00  
  Divesture—Capacity Replacement Reconciliation     16,022,000.00                   16,022,000.00  
  Deferred Revenue Taxes     44,986,855.61   2,754,953.22                 47,741,808.83  
  World Trade Center Restoration Costs     68,069,905.30                   68,069,905.30  
  NYS Tax Law Changes     23,328,350.49                   23,328,350.49  
  Property Tax Reconcillation     40,730,033.00                   40,730,033.00  
  Other Regulatory Assets     103,937,222.85   6,842,641.86                 110,779,864.71  
   
 
 
 
 
 
 
 
 
 
 
 
    Total Regulatory Assets     1,640,500,891.59   220,754,917.06                 1,861,255,808.65  
   
 
 
 
 
 
 
 
 
 
 
 
Other Deferred Charges and Noncurrent Assets   11,151,396.29   202,389,995.51   15,562,812.40     8,193,043.72   8,915,797.00   19,654,007.79         265,867,052.71  
   
 
 
 
 
 
 
 
 
 
 
 
Deferred Charges, Regulatory Assets and Noncurrent Assets   420,555,609.29   3,100,017,373.51   236,317,729.46     117,016,442.72   8,915,797.00   21,829,549.51   (3,602,672.94 )     3,901,049,828.55  
   
 
 
 
 
 
 
 
 
 
 
 
Total Assets   7,957,090,705.64   17,763,742,851.62   1,269,130,842.48   35,004,805.11   1,275,347,845.11   116,827,851.39   126,768,540.66   14,577,773.94   (21,500,123.51 ) (7,571,470,554.85 ) 20,965,520,537.59  
   
 
 
 
 
 
 
 
 
 
 
 

A-1


Common Stockholders' Equity                                      
Common Stock Issued   24,905,092.00   588,720,235.00   5,000.00   50,099.00   20,000.00   10.00   20,000.00       (588,815,344.00 ) 24,905,092.00  
Other Paid-in Capital, Premium on Common Stock   1,988,737,902.65   1,260,348,413.82   194,498,789.81   217,625,511.00   558,548,185.66   13,246,998.43   71,410,195.67       (2,315,893,796.27 ) 1,988,522,200.77  
Gain on Resale or Cancellation of Reacquired Capital Stock     13,943,328.01                   13,943,328.01  
Accumulated Other Comprehensive Income     (5,704,403.69 ) (10,590,692.00 )   (3,579,536.49 ) 22,979.54   3,912,796.46       (0.12 ) (15,938,856.30 )
Capital Stock Expense—Common Stock   (31,755,003.79 ) (35,275,279.93 )               31,755,003.79   (35,275,279.93 )
Capital Stock Expense—Preferred Stock     (3,500,392.67 )                 (3,500,392.67 )
Treasury Stock   (39,149,051.52 ) (962,092,491.50 )                 (1,001,241,543.02 )
Retained Earnings   5,431,189,490.11   4,625,863,740.78   186,153,826.03   (148,756,253.64 ) (2,008,728.61 ) 1,339,783.59   (8,938,486.48 ) 14,577,773.94     (4,647,992,255.20 ) 5,451,428,890.52  
   
 
 
 
 
 
 
 
 
 
 
 
  Common Stockholders' Equity   7,373,928,429.45   5,482,303,149.82   370,066,923.84   68,919,356.36   552,979,920.56   14,609,771.56   66,404,505.65   14,577,773.94     (7,520,946,391.80 ) 6,422,843,439.38  
   
 
 
 
 
 
 
 
 
 
 
 
Preferred Stock     212,562,527.00                   212,562,527.00  
Long-Term Debt   525,000,000.00   5,458,224,192.00   302,200,000.00     471,022,521.79     1,181,544.07         6,757,628,257.86  
Unamortized Premium (Discount)   (230,818.41 ) (22,841,440.85 ) (1,191,001.28 )               (24,263,260.54 )
   
 
 
 
 
 
 
 
 
 
 
 
  Capital   7,898,697,611.04   11,130,248,427.97   671,075,922.56   68,919,356.36   1,024,002,442.35   14,609,771.56   67,586,049.72   14,577,773.94     (7,520,946,391.80 ) 13,368,770,963.70  
   
 
 
 
 
 
 
 
 
 
 
 
Noncurrent Liabilities                                              
Minority Interest in Consolidated Subsidiaries           42,356,984.29     (396,866.96 )       41,960,117.33  
Obligations Under Capital Leases     35,754,000.00     523,820.00               36,277,820.00  
Provision for Injuries and Damages     183,572,144.09   10,117,118.12                 193,689,262.21  
Pension and Retiree Benefits     107,313,723.01   97,969,359.80                 205,283,082.81  
Superfund and Other Environmental Costs     153,100,749.38   39,637,700.72                 192,738,450.10  
Independent Power Producer Buyout     30,600,000.00                   30,600,000.00  
Other Noncurrent Liabilities     7,126,251.24   16,762,719.00   730,685.20   15,112,986.94   8,079,737.00   971,862.28         48,784,241.66  
   
 
 
 
 
 
 
 
 
 
 
 
  Noncurrent Liabilities     517,466,867.72   164,486,897.64   1,254,505.20   57,469,971.23   8,079,737.00   574,995.32         749,332,974.11  
   
 
 
 
 
 
 
 
 
 
 
 
Current Liabilities                                              
Long-Term Debt Due Within One Year     150,000,000.00       15,801,028.00     118,683.00         165,919,711.00  
Notes Payable   42,389,591.56   98,976,887.78   14,974,350.09     2,432,831.55             158,773,660.98  
Accounts Payable   8,823,408.25   713,380,712.47   71,037,741.70   3,964,004.41   3,684,490.76   58,204,128.12   45,602,621.56     (258.96 ) (12,062.41 ) 904,684,785.90  
Accounts Payable to Affiliated Companies   1,071,461.68   12,149,668.09   33,246,624.77   592,085.54   3,032,146.06   4,835,421.50   3,411,981.71     (7,827,288.71 ) (50,512,100.64 )  
Customer Deposits     214,312,603.07   13,839,788.45                 228,152,391.52  
Accrued Taxes   2,412,998.00   94,650,925.60   4,373,070.45   (10,920,219.47 ) (22,412,722.32 ) 406,378.87   280,154.02         68,790,585.15  
Interest Accrued   8,966,840.35   87,868,163.95   5,393,575.16                 102,228,579.46  
Other Current Liabilities   3,255,651.76   225,510,595.09   8,207,403.61   8,676,609.19   14,429,896.19   30,807,001.96   5,228,975.60     (13,672,575.84 )   282,443,557.56  
   
 
 
 
 
 
 
 
 
 
 
 
  Current Liabilities   66,919,951.60   1,596,849,556.05   151,072,554.23   2,312,479.67   16,967,670.24   94,252,930.45   54,642,415.89     (21,500,123.51 ) (50,524,163.05 ) 1,910,993,271.57  
   
 
 
 
 
 
 
 
 
 
 
 
Deferred Credits and Regulatory Liabilities                                  
Accumulated Deferred Federal Income Tax   (8,526,857.00 ) 2,166,764,797.31   138,393,054.96   (39,428,591.42 ) 176,907,761.29   (148,020.62 ) 3,965,079.73         2,437,927,224.25  
Deferred Tax Liability—Future Federal Income Tax     588,571,000.00   39,941,168.00                 628,512,168.00  
Accumulated Deferred Investment Tax Credits     99,770,000.00   5,495,384.00                 105,265,384.00  
Regulatory Liabilities:                                              
  Allowance for Cost of Removal less Salvage     721,441,814.33   56,100,592.05                 777,542,406.38  
  NYSIO Reconciliation     134,198,281.32                   134,198,281.32  
  Gain on Divesture     55,056,851.04   1,083,200.00                 56,140,051.04  
  Deposit from Sale of First Avenue Properties     50,000,000.00                   50,000,000.00  
  Refundable Energy Costs       20,686,488.55                 20,686,488.55  
  Accrued Electric Rate Reduction     31,785,130.73                   31,785,130.73  
  DC Service Incentive     37,914,524.09                   37,914,524.09  
  Transmission Congestion Contracts     284,316,515.01                   284,316,515.01  
  Gas Rate Plan—WTC Recovery     36,318,898.76                   36,318,898.76  
  Excess Earnings     49,153,000.00                   49,153,000.00  
  Natural Gas Refunds     9,040,299.20                   9,040,299.20  
  NYS Tax Law Changes     18,218,294.03                   18,218,294.03  
  Gas Interference-Cost Sharing     10,091,943.40                   10,091,943.40  
  Federal Income Tax Refund     29,482,572.70                   29,482,572.70  
  Gas Interruptible Sales Credits     25,503,499.00                   25,503,499.00  
  Steam Special Franchise Tax     9,860,839.49                   9,860,839.49  
  Other Regulatory Liabilities     161,689,739.47   16,897,540.83                 178,587,280.30  
   
 
 
 
 
 
 
 
 
 
 
 
    Regulatory Liabilities     1,664,072,202.57   94,767,821.43                 1,758,840,024.00  
   
 
 
 
 
 
 
 
 
 
 
 
Other Deferred Credits       3,898,039.66   1,947,055.30     33,433.00           5,878,527.96  
   
 
 
 
 
 
 
 
 
 
 
 
Other Deferred Credits and Regulatory Liabilities     1,664,072,202.57   98,665,861.09   1,947,055.30     33,433.00           1,764,718,551.96  
   
 
 
 
 
 
 
 
 
 
 
 
Deferred Credits and Regulatory Liabilities   (8,526,857.00 ) 4,519,177,999.88   282,495,468.05   (37,481,536.12 ) 176,907,761.29   (114,587.62 ) 3,965,079.73         4,936,423,328.21  
   
 
 
 
 
 
 
 
 
 
 
 
Total Capital and Liabilities   7,957,090,705.64   17,763,742,851.62   1,269,130,842.48   35,004,805.11   1,275,347,845.11   116,827,851.39   126,768,540.66   14,577,773.94   (21,500,123.51 ) (7,571,470,554.85 ) 20,965,520,537.59  
   
 
 
 
 
 
 
 
 
 
 
 

A-2



CEI Consolidating Income Statement

For The Year Ended December 31, 2003

 
  CEI Holding
  CECoNY
Consolidated

  Orange and Rockland
Utilities, Inc

  Con Edison
Communications
Consolidated

  Con Edison
Development

  Con Edison
Energy

  Con Edison
Solutions

  Non-Reg
Eliminations

  Consolidation
Entries

  CEI Eliminations
  Consolidated Edison, Inc.
 
Operating Revenues                                              
Electric     6,334,213,623.25   529,794,254.19               (1,223,598.43 ) 6,862,784,279.01  
Gas     1,295,020,924.79   197,277,661.37               (237,078.90 ) 1,492,061,507.26  
Steam     536,973,593.48                   536,973,593.48  
Non Utility       3,548.38   19,397,973.97   302,673,236.65   53,651,543.33   578,376,429.03   (17,316,442.86 ) 6,120,576.00   (7,660,451.53 ) 935,246,412.97  
   
 
 
 
 
 
 
 
 
 
 
 
  Operating Revenues     8,166,208,141.52   727,075,463.94   19,397,973.97   302,673,236.65   53,651,543.33   578,376,429.03   (17,316,442.86 ) 6,120,576.00   (9,121,128.86 ) 9,827,065,792.72  
   
 
 
 
 
 
 
 
 
 
 
 
Operating Expenses                                              
Purchased Power     3,123,377,226.92   251,043,924.50     43,884,979.45   42,324,622.79   473,459,073.43   (4,106,980.54 ) 4,106,982.00   (7,702,528.35 ) 3,926,387,300.20  
Fuel     357,673,289.81       146,624,459.36             504,297,749.17  
Gas Purchased for Resale     715,357,236.39   119,680,799.48         17,226,766.60   (7,223,767.32 ) 2,013,594.00   (332,947.21 ) 846,721,681.94  
Other Operations     835,130,963.84   138,954,406.08   47,933,615.01   76,092,177.71   8,215,689.72   34,275,239.93   (5,985,695.00 )   (1,085,650.40 ) 1,133,530,746.89  
Impairment Charges         139,521,201.47   17,644,318.45     370,628.15     1,543,477.50     159,079,625.57  
Maintenance     322,657,845.74   30,821,023.95                 353,478,869.69  
Depreciation and Amortization     458,218,790.67   34,114,220.43   12,370,565.70   19,559,969.73   696,597.28   3,389,448.93     399,592.93     528,749,185.67  
Taxes, Other Than Income Taxes   82.36   1,040,066,399.77   50,643,074.22   1,032,799.60   6,311,852.64   8,241.65   17,746,716.43         1,115,809,166.67  
Income Taxes   (11,832,072.00 ) 371,752,263.04   33,801,647.68   (73,400,043.36 ) (9,542,705.00 ) 994,718.10   12,984,152.96         324,757,961.42  
   
 
 
 
 
 
 
 
 
 
 
 
  Operating Expenses   (11,831,989.64 ) 7,224,234,016.18   659,059,096.34   127,458,138.42   300,575,052.34   52,239,869.54   559,452,026.43   (17,316,442.86 ) 8,063,646.43   (9,121,125.96 ) 8,892,812,287.22  
   
 
 
 
 
 
 
 
 
 
 
 
  Operating Income   11,831,989.64   941,974,125.34   68,016,367.60   (108,060,164.45 ) 2,098,184.31   1,411,673.79   18,924,402.60     (1,943,070.43 ) (2.90 ) 934,253,505.50  
   
 
 
 
 
 
 
 
 
 
 
 
Other Income (Deductions)                                          
Investment Income   5,521.54   435,796.01   1,599,566.03   11,439.06   1,165,111.54   86,286.01   1,053,937.69         4,357,657.88  
Allowance for Equity Funds Used During Construction     14,646,811.89   187,634.30                 14,834,446.19  
Other Income   (1,324,300.55 ) 26,882,876.58   (1,953,004.04 )     8,268.64   (728,367.15 )       22,885,473.48  
Other Income—Intercompany   534,997,152.91                   (534,997,152.91 )  
Other Deductions   (3,383,956.58 ) (10,817,107.20 ) (2,021,086.66 )   (2,124,834.74 )         1,764,953.92   (16,582,031.26 )
Income Taxes—Non Operating   4,696,020.19   5,112,282.00   197,607.00                 10,005,909.19  
   
 
 
 
 
 
 
 
 
 
 
 
  Other Income (Deductions)   534,990,437.51   36,260,659.28   (1,989,283.37 ) 11,439.06   (959,723.20 ) 94,554.65   325,570.54       (533,232,198.99 ) 35,501,455.48  
Interest Charges                                              
Interest on Long-Term Debt   26,966,959.72   346,184,410.38   19,272,948.66     13,996,865.41         (5,403,174.80 )   401,018,009.37  
Intercompany Interest                        
Other Interest Expense   1,445,871.32   42,434,054.76   1,513,391.37   116,938.00     56,530.87   245,095.76     (454,140.17 )   45,357,741.91  
Allowance for Borrowed Funds used During Construction     (12,282,424.89 ) (224,227.25 )               (12,506,652.14 )
   
 
 
 
 
 
 
 
 
 
 
 
  Net Interest Charges   28,412,831.04   376,336,040.25   20,562,112.78   116,938.00   13,996,865.41   56,530.87   245,095.76     (5,857,314.97 )   433,869,099.14  
   
 
 
 
 
 
 
 
 
 
 
 
Income Before Preferred Stock Dividends   518,409,596.11   601,898,744.37   45,464,971.45   (108,165,663.39 ) (12,858,404.30 ) 1,449,697.57   19,004,877.38     3,914,244.54   (533,232,201.89 ) 535,885,861.84  
Preferred Stock Dividend Requirements     (11,323,256.94 )                 (11,323,256.94 )
Income Before Cumulative Effect of Changes in Accounting Principle   518,409,596.11   590,575,487.43   45,464,971.45   (108,165,663.39 ) (12,858,404.30 ) 1,449,697.57   19,004,877.38     3,914,244.54   (533,232,201.89 ) 524,562,604.90  
Cumulative Effect of Change in Accounting Principle           3,422,863.36             3,422,863.36  
   
 
 
 
 
 
 
 
 
 
 
 
  Net Income for Common Stock   518,409,596.11   590,575,487.43   45,464,971.45   (108,165,663.39 ) (9,435,540.94 ) 1,449,697.57   19,004,877.38     3,914,244.54   (533,232,201.89 ) 527,985,468.26  
   
 
 
 
 
 
 
 
 
 
 
 

A-3



Orange and Rockland Utilities, Inc. Consolidating Balance Sheet
December 31, 2003

 
  Orange &
Rockland Utilities

  Rockland
Electric
Consolidated

  Pike County
Light and
Power Company

  CLOVE
Development
Corp.

  ORDEVCO
  Eliminations_ORU
  Consolidated ORU
 
Utility Plant                              
Utility Plant   1,014,020,833.59   186,701,261.26   9,480,843.53       (227,527.71 ) 1,209,975,410.67  
Accumulated Depreciation   (311,607,783.88 ) (58,322,520.72 ) (2,961,042.77 )       (372,891,347.37 )
Construction Work In Progress   20,685,462.25   8,234,445.13   399,174.88         29,319,082.26  
   
 
 
 
 
 
 
 
  Net Utility Plant   723,098,511.96   136,613,185.67   6,918,975.64       (227,527.71 ) 866,403,145.56  
   
 
 
 
 
 
 
 
Non-Utility Plant                              
Non-Utility Property Less Accumulated Depreciation   (27,896.98 )   19,546.13     400,286.66     391,935.81  
   
 
 
 
 
 
 
 
  Non-Utility Plant   (27,896.98 )   19,546.13     400,286.66     391,935.81  
   
 
 
 
 
 
 
 
Current Assets                              
Cash and Temporary Investments   3,966,743.33   12,005,485.50   166,720.41   15,510,055.56   135,225.92   (23,110,000.00 ) 8,674,230.72  
Restricted Cash   800,000.00             800,000.00  
Accounts Receivable—Customers, Less Allowance for Uncollectible   47,910,274.97   8,633,943.70   659,736.96         57,203,955.63  
Other Accounts Receivable Less Allowance for Uncollectible   5,515,294.41   580,323.14   96,084.55   2,500,000.00     (1,081,350.25 ) 7,610,351.85  
Receivables from Affiliated Companies   23,081,705.68   1,052,402.58   35,897.80     (40,520.62 ) (12,770,335.98 ) 11,359,149.46  
Accrued Unbilled Revenue   14,584,364.53   3,053,782.64   411,195.50         18,049,342.67  
Gas in Storage   28,843,178.46             28,843,178.46  
Materials and Supplies, at Average Cost   4,708,205.82   1,184,379.08   82,641.27         5,975,226.17  
Prepayments   10,291,971.01   6,908,140.32   151,599.48     406.33     17,352,117.14  
Special Deposits   1,000.00   6,000.00           7,000.00  
Other Current Assets   10,143,479.55             10,143,479.55  
   
 
 
 
 
 
 
 
  Current Assets   149,846,217.76   33,424,456.96   1,603,875.97   18,010,055.56   95,111.63   (36,961,686.23 ) 166,018,031.65  
   
 
 
 
 
 
 
 
Other Investments                              
Other Investments—Other   160,275,212.64           (160,275,212.64 )  
   
 
 
 
 
 
 
 
Deferred Charges, Regulatory Assets and Noncurrent Assets                    
Regulatory Assets:                              
  Future Federal Income Taxes   32,248,967.00   7,193,773.00   498,428.00         39,941,168.00  
  Recoverable Energy Costs   10,410,255.18   80,111,365.55   142,977.53       (3,470,208.14 ) 87,194,390.12  
  Deferred Retirement Program Costs   30,875,458.30   13,128,323.63   270,317.29         44,274,099.22  
  Deferred Environmental Remediation Reserve Costs   38,664,464.64             38,664,464.64  
  Deferred Asbestos—Related Reserve Costs   1,083,200.00             1,083,200.00  
  Deferred Revenue Taxes   1,425,546.59   1,324,057.13   5,349.50         2,754,953.22  
  Other Regulatory Assets   2,957,470.29   3,871,973.70   13,197.87         6,842,641.86  
   
 
 
 
 
 
 
 
    Total Regulatory Assets   117,665,362.00   105,629,493.01   930,270.19       (3,470,208.14 ) 220,754,917.06  
   
 
 
 
 
 
 
 
Other Deferred Charges and Noncurrent Assets   13,892,353.46   1,423,762.86   246,696.08         15,562,812.40  
   
 
 
 
 
 
 
 
Deferred Charges, Regulatory Assets and Noncurrent Assets   131,557,715.46   107,053,255.87   1,176,966.27       (3,470,208.14 ) 236,317,729.46  
   
 
 
 
 
 
 
 
Total Assets   1,164,749,760.84   277,090,898.50   9,719,364.01   18,010,055.56   495,398.29   (200,934,634.72 ) 1,269,130,842.48  
   
 
 
 
 
 
 
 

A-4



Orange and Rockland Utilities, Inc. Consolidating Balance Sheet
December 31, 2003

 
  Orange &
Rockland Utilites

  Rockland
Electric
Consolidated

  Pike County
Light and
Power Company

  CLOVE
Development
Corp.

  ORDEVCO
  Eliminations
  Consolidated ORU
 
Common Stockholder's Equity                          
Common Stock Issued   5,000.00   11,200,000.00   137,000.00   25,000.00   2,550.00   (11,364,550.00 ) 5,000.00  
Other Paid-in Capital, Premium on Common Stock   194,498,786.94           2.87   194,498,789.81  
Accumulated Other Comprehensive Income   (10,590,692.00 )           (10,590,692.00 )
Capital Stock
Expense—Common Stock
               
Retained Earnings   186,153,928.92   128,798,902.41   2,718,687.27   17,943,920.90   (323,320.35 ) (149,138,293.12 ) 186,153,826.03  
   
 
 
 
 
 
 
 
  Common Stockholder's Equity   370,067,023.86   139,998,902.41   2,855,687.27   17,968,920.90   (320,770.35 ) (160,502,840.25 ) 370,066,923.84  
   
 
 
 
 
 
 
 
Long-Term Debt   279,000,000.00   20,000,000.00   3,200,000.00         302,200,000.00  
Unamortized Premium (Discount)   (1,180,209.89 ) (10,791.39 )         (1,191,001.28 )
   
 
 
 
 
 
 
 
Capital   647,886,813.97   159,988,111.02   6,055,687.27   17,968,920.90   (320,770.35 ) (160,502,840.25 ) 671,075,922.56  
   
 
 
 
 
 
 
 
Noncurrent Liabilities                            
Provision for Injuries and Damages   10,021,793.06   95,325.06           10,117,118.12  
Pension and Retiree Benefits   85,976,950.18   11,710,354.68   282,054.94         97,969,359.80  
Superfund and Other Environmental Costs   39,637,700.72             39,637,700.72  
Other Noncurrent Liabilities   16,762,719.00             16,762,719.00  
   
 
 
 
 
 
 
 
Noncurrent Liabilities   152,399,162.96   11,805,679.74   282,054.94         164,486,897.64  
   
 
 
 
 
 
 
 
Current Liabilities                              
Notes Payable   38,084,350.09           (23,110,000.00 ) 14,974,350.09  
Accounts Payable   63,677,638.51   7,223,594.55   94,728.48     41,780.16     71,037,741.70  
Accounts Payable to Affiliated Companies   31,879,695.86   13,158,065.21   957,467.81   39,212.00   (50,930.25 ) (12,736,885.86 ) 33,246,624.77  
Customer Deposits   11,210,792.26   2,450,081.72   178,914.47         13,839,788.45  
Accrued Taxes   1,017,193.21   3,147,956.26   207,920.98         4,373,070.45  
Interest Accrued   4,668,251.38   660,467.01   64,856.77         5,393,575.16  
Other Current Liabilities   3,634,046.33   4,461,596.36     1,922.66   109,838.26     8,207,403.61  
   
 
 
 
 
 
 
 
Current Liabilities   154,171,967.64   31,101,761.11   1,503,888.51   41,134.66   100,688.17   (35,846,885.86 ) 151,072,554.23  
   
 
 
 
 
 
 
 
Deferred Credits and Regulatory Liabilities                        
Accumulated Deferred Federal Income Tax   125,760,638.00   52,007,527.96   965,277.00     (399,220.00 )   178,334,222.96  
Accumulated Deferred Investment Tax Credits   4,067,077.00   1,384,734.00   43,573.00         5,495,384.00  
Regulatory Liabilities:                            
  Allowance for Cost of Removal less Salvage   46,391,730.64   9,708,861.41           56,100,592.05  
  Gain on Divesture   1,083,200.00             1,083,200.00  
  Refundable Energy Costs   16,740,950.71   7,232,716.08   183,029.90       (3,470,208.14 ) 20,686,488.55  
  Other Regulatory Liabilities   12,561,834.33   3,775,248.60   560,457.90         16,897,540.83  
   
 
 
 
 
 
 
 
Regulatory Liabilities   76,777,715.68   20,716,826.09   743,487.80       (3,470,208.14 ) 94,767,821.43  
   
 
 
 
 
 
 
 
Other Deferred Credits   3,686,385.59   86,258.58   125,395.49     1,114,700.47   (1,114,700.47 ) 3,898,039.66  
   
 
 
 
 
 
 
 
Deferred Credits and Regulatory Liabilities   210,291,816.27   74,195,346.63   1,877,733.29     715,480.47   (4,584,908.61 ) 282,495,468.05  
   
 
 
 
 
 
 
 
Total Capital and Liabilities   1,164,749,760.84   277,090,898.50   9,719,364.01   18,010,055.56   495,398.29   (200,934,634.72 ) 1,269,130,842.48  
   
 
 
 
 
 
 
 

A-5



Orange and Rockland Utilities, Inc. Consolidating Income Statement
For the Year Ended December 31, 2003

 
  Orange &
Rockland Utilites

  Rockland Electric
Consolidated

  Pike County Light and
Power Company

  CLOVE Development
Corp.

  ORDEVCO
  Eliminations
  Consolidated ORU
 
Operating Revenues                              
Electric   409,970,601.40   138,065,030.72   6,724,262.95   9,918.25     (24,975,559.13 ) 529,794,254.19  
Gas   197,406,843.01     1,060,072.25       (1,189,253.89 ) 197,277,661.37  
Non Utility           3,548.38     3,548.38  
   
 
 
 
 
 
 
 
  Operating Revenues   607,377,444.41   138,065,030.72   7,784,335.20   9,918.25   3,548.38   (26,164,813.02 ) 727,075,463.94  
   
 
 
 
 
 
 
 
Operating Expenses                            
Purchased Power   197,367,976.86   71,806,702.46   3,498,703.31       (21,629,458.13 ) 251,043,924.50  
Gas Purchased for Resale   119,793,985.73     833,268.64       (946,454.89 ) 119,680,799.48  
Other Operations   110,533,723.11   30,183,414.97   1,449,607.99   515.00   376,045.01   (3,588,900.00 ) 138,954,406.08  
Maintenance   27,192,162.30   3,424,926.34   218,354.26   581.05   (15,000.00 )   30,821,023.95  
Depreciation and Amortization   29,866,670.28   3,986,452.47   261,097.68         34,114,220.43  
Taxes, Other than Income Taxes   41,841,246.18   8,272,917.69   488,000.65   28,606.00   12,303.70     50,643,074.22  
Income Taxes   25,086,791.00   8,114,513.00   287,596.68   96,106.00   216,641.00     33,801,647.68  
   
 
 
 
 
 
 
 
  Operating Expenses   551,682,555.46   125,788,926.93   7,036,629.21   125,808.05   589,989.71   (26,164,813.02 ) 659,059,096.34  
   
 
 
 
 
 
 
 
  Operating Income   55,694,888.95   12,276,103.79   747,705.99   (115,889.80 ) (586,441.33 )   68,016,367.60  
   
 
 
 
 
 
 
 
Other Income (Deductions)                    
Investment Income   2,022,670.14   (478,720.84 ) 249.86   298,370.16   3,564.41   (246,567.70 ) 1,599,566.03  
Allowance for Equity Funds Used During Construction   4,590.75   183,043.60   (0.05 )       187,634.30  
Other Income   8,147,851.25   4,081.61   (987.20 ) (42.00 ) 910,232.80   (11,014,140.50 ) (1,953,004.04 )
Other Deductions   (1,451,729.96 ) (544,047.42 ) (25,309.28 )       (2,021,086.66 )
Income Taxes—Non Operating   (24,074.00 ) 217,249.00   4,432.00         197,607.00  
   
 
 
 
 
 
 
 
  Other Income (Deductions)   8,699,308.18   (618,394.05 ) (21,614.67 ) 298,328.16   913,797.21   (11,260,708.20 ) (1,989,283.37 )
   
 
 
 
 
 
 
 
Interest Charges                            
Interest on Long-Term Debt   17,401,386.39   1,630,843.92   240,718.35         19,272,948.66  
Other Interest Expense   1,632,332.55   80,349.33   33,273.42     14,003.77   (246,567.70 ) 1,513,391.37  
Allowance for Borrowed Funds used During Construction   (104,493.26 ) (117,107.35 ) (2,626.64 )       (224,227.25 )
   
 
 
 
 
 
 
 
Net Interest Charges   18,929,225.68   1,594,085.90   271,365.13     14,003.77   (246,567.70 ) 20,562,112.78  
   
 
 
 
 
 
 
 
Net Income for Common Stock   45,464,971.45   10,063,623.84   454,726.19   182,438.36   313,352.11   (11,014,140.50 ) 45,464,971.45  
   
 
 
 
 
 
 
 

A-6


Consolidated Edison Development, Inc.
Consolidating Balance Sheet
For The Period Ended December 31, 2003

 
  Consolidated
Edison
Development, Inc
Consolidated

  Elimination
  CED
Generation
Holding
Company, LLC

  Consolidated
Edison
Energy of
Massachusetts, Inc.

  Consolidated
Edison
Development Inc.

  Consolidated
Edison
Leasing LLC

  Consolidated
Edison
Development
Guatemala, Ltd.

  CED
Ada, Inc.

  Con Edison
Leasing LLC

  CED/SCS
Newington, LLC

  CEDST, LLC
  CEEMI
Expansion, Inc.

  Ocean
Peaking
Power, LLC

  CED
Rock
Springs, Inc.

Non-Utility Plant                                                        
Unregulated Generating Assets, Less Accumulated Depreciation   855,313,536.15   (10,735,939.73 ) 119,692,449.36   39,349,265.35   18,229,878.14           332,689,157.00     55,950,866.14   152,151,696.28   147,986,163.61
Non-Utility Property Less Accumulated Depreciation   (199,006.59 )     29,990.85   (79,899.44 )               (149,098.00 )
Construction Work in Progress   3,534,365.77       18,130.63                 3,516,235.14    
   
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Utility Plant   858,648,895.33   (10,735,939.73 ) 119,692,449.36   39,397,386.83   18,149,978.70           332,689,157.00     59,467,101.28   152,002,598.28   147,986,163.61
   
 
 
 
 
 
 
 
 
 
 
 
 
 
Current Assets                                                        
Cash   8,243,951.02     2,265,303.20   48,386.18   165,905.78     1,909,552.14       3,719,644.57     63,076.26   64,999.39   7,083.50
Temporary Investments       300,000.00   (3,070,000.00 ) 7,530,000.00           (11,410,000.00 )   (1,360,000.00 ) 4,730,000.00   3,280,000.00
Restricted Cash   17,070,567.61     16,354,149.94               716,417.67        
Accounts Receivable—Customers, Less Allowance for Uncollectible   7,944,426.85   (24,472,955.36 ) 6,519,468.09     (5,978,111.01 )         26,154,609.16     3,019,804.00   1,934,143.35   767,468.62
Receivable from Affiliated Companies   9,726,685.92   (354,827,886.90 ) 4,301,258.64   5,880,736.16   220,259,709.53   55,216,124.14       52,158,496.30   4,212,157.78   11,297,877.81   8,469,530.44   1,329,188.93   1,429,493.09
Fuel at Average Cost   9,006,561.75     1,710,135.33   2,116,458.66             5,112,464.81     67,502.95    
Materials and Supplies, at Average Cost   5,611,358.46       2,582,299.86             726.24       3,028,332.36  
Prepayments   3,810,058.23     1,144,935.19   267,214.77   101,973.09           1,168,296.20     132,791.26   346,017.48   648,830.24
   
 
 
 
 
 
 
 
 
 
 
 
 
 
Current Assets   61,413,609.84   (379,300,842.26 ) 32,595,250.39   7,825,095.63   222,079,477.39   55,216,124.14   1,909,552.14     52,158,496.30   29,674,316.43   11,297,877.81   10,392,704.91   11,432,681.51   6,132,875.45
   
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Investments                                                        
Other Investments—Other   238,268,897.22   (454,937,846.88 )     459,084,007.92   94,108,831.88   13,541,174.89   10,982,846.71   107,989,262.05   (4,687.35 ) 7,505,308.00      
   
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Investments   238,268,897.22   (454,937,846.88 )     459,084,007.92   94,108,831.88   13,541,174.89   10,982,846.71   107,989,262.05   (4,687.35 ) 7,505,308.00      
   
 
 
 
 
 
 
 
 
 
 
 
 
 
Deferred Charges, Regulatory Assets and Noncurrent Assets                                                        
Intangible Assets   108,823,399.00     109,190,403.00               (367,004.00 )      
Other Deferred Charges and Noncurrent Assets   8,193,043.72     1,236,567.72     51,325.00           6,905,151.00        
   
 
 
 
 
 
 
 
 
 
 
 
 
 
Deferred Charges, Regulatory Assets and Noncurrent Assets   117,016,442.72     110,426,970.72     51,325.00           6,538,147.00        
   
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Assets   1,275,347,845.11   (844,974,628.87 ) 262,714,670.47   47,222,482.46   699,364,789.01   149,324,956.02   15,450,727.03   10,982,846.71   160,147,758.35   368,896,933.08   18,803,185.81   69,859,806.19   163,435,279.79   154,119,039.06
   
 
 
 
 
 
 
 
 
 
 
 
 
 

A-7


Consolidated Edison Development, Inc.
Consolidating Balance Sheet
For The Period Ended December 31, 2003

 
  Consolidated
Edison
Development, Inc
Consolidated

  Elimination
  Con Edison
Develoment
Holding
Co.

  Con
Edison
Energy of Mass
Consolidated

  Consolidated
Edison
Development Inc.

  Consolidated
Edison
Leasing
Consolidated

  Consolidated
Edison
Guatemala, Ltd.
Consolidated

  Consolidated
Edison Devep.
Ada, Inc.
Consolidated

  Con Edison
Leasing Inc.
Consolidated

  SCS/
Newington, LLC

  Consolidated
CEDST,
LLC
Consolidated

  CEEMI
Expansion

  Ocean
Peaking
Power

  Rock
Springs 1&2

Common Stockholder's Equity                                                        
Common Stock Issued   20,000.00   (50.51 )   30.51   20,000.00   20.00                
Other Paid-in Capital, Premium on Common Stock   558,548,185.66   (390,433,898.46 ) 71,489,201.54   20,228,827.93   558,548,185.66   43,444,971.00   13,860,422.82   7,938,582.05   49,313,439.69     9,878,571.02   30,690,133.06   73,192,651.70   70,397,097.65
Accumulated Other Comprehensive Income   (3,579,536.49 )   (4,083,990.29 )                   252,226.90   252,226.90
Retained Earnings   (2,008,728.61 ) (75,244,224.75 ) 7,624,820.31   (1,012,190.72 ) 8,772,778.28   32,562,821.52   910,852.80   2,168,392.97   35,358,261.68   (18,957,450.45 ) 3,028,500.68   (3,438,210.14 ) 1,262,503.00   4,954,416.21
   
 
 
 
 
 
 
 
 
 
 
 
 
 
  Common Stockholder's Equity   552,979,920.56   (465,678,173.72 ) 75,030,031.56   19,216,667.72   567,340,963.94   76,007,812.52   14,771,275.62   10,106,975.02   84,671,701.37   (18,957,450.45 ) 12,907,071.70   27,251,922.92   74,707,381.60   75,603,740.76
   
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-Term Debt   471,022,521.79     128,395,001.00       3,383,285.94       3,408,639.85   335,835,595.00        
   
 
 
 
 
 
 
 
 
 
 
 
 
 
  Capital   1,024,002,442.35   (465,678,173.72 ) 203,425,032.56   19,216,667.72   567,340,963.94   79,391,098.46   14,771,275.62   10,106,975.02   88,080,341.22   316,878,144.55   12,907,071.70   27,251,922.92   74,707,381.60   75,603,740.76
   
 
 
 
 
 
 
 
 
 
 
 
 
 
Noncurrent Liabilities                                                        
Minority Interest in Consolidated Subsidiaries   42,356,984.29     31,657,029.60         100.00       10,699,854.69        
Other Noncurrent Liabilities   15,112,986.94   (339,228,452.55 ) 4,083,990.17   25,960,444.88   121,099,702.51           15,412,721.21   927,399.00   30,994,528.98   82,106,398.75   73,756,253.99
   
 
 
 
 
 
 
 
 
 
 
 
 
 
  Noncurrent Liabilities   57,469,971.23   (339,228,452.55 ) 35,741,019.77   25,960,444.88   121,099,702.51     100.00       26,112,575.90   927,399.00   30,994,528.98   82,106,398.75   73,756,253.99
   
 
 
 
 
 
 
 
 
 
 
 
 
 
Current Liabilities                                                        
Long-Term Debt Due Within One Year   15,801,028.00     12,990,000.00       131,625.00       211,046.00   2,468,357.00        
Notes Payable   2,432,831.55       2,842.05   28,989.50     100,000.00       2,301,000.00        
Accounts Payable   3,684,490.76     592,219.47   241,028.26   143,385.85     900.00       1,843,916.53     29,282.52   19,353.24   814,404.89
Accounts Payable to Affiliated Companies   3,032,146.06   (16,571,408.32 ) 1,026,777.69   22,432.28   14,999,428.37           (180,046.49 )   587,467.57   2,318,971.19   828,523.77
Accrued Taxes   (22,412,722.32 ) (22,710,424.35 ) 220,367.16   (1,505,869.01 ) 707,332.08       875,871.69       0.11      
Other Current Liabilities   14,429,896.19   777,688.57   1,026,963.89   1,855,742.45   1,793,127.56     50,000.00     (9.69 ) 4,609,577.26     1,738,804.65   1,423,769.31   1,154,232.19
   
 
 
 
 
 
 
 
 
 
 
 
 
 
  Current Liabilities   16,967,670.24   (38,504,144.10 ) 15,856,328.21   616,176.03   17,672,263.36   131,625.00   150,900.00   875,871.69   211,036.31   11,042,804.30   0.11   2,355,554.74   3,762,093.74   2,797,160.85
   
 
 
 
 
 
 
 
 
 
 
 
 
 
Deferred Credits                                                
Accumulated Deferred Federal Income Tax   176,907,761.29   (1,563,858.50 ) 7,692,289.91   1,429,193.83   (6,748,140.78 ) 69,802,232.56   528,451.41     71,856,380.82   14,863,408.33   4,968,715.00   9,257,799.55   2,859,405.70   1,961,883.46
   
 
 
 
 
 
 
 
 
 
 
 
 
 
Deferred Credits   176,907,761.29   (1,563,858.50 ) 7,692,289.91   1,429,193.83   (6,748,140.78 ) 69,802,232.56   528,451.41     71,856,380.82   14,863,408.33   4,968,715.00   9,257,799.55   2,859,405.70   1,961,883.46
   
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Capital and Liabilities   1,275,347,845.11   (844,974,628.87 ) 262,714,670.45   47,222,482.46   699,364,789.03   149,324,956.02   15,450,727.03   10,982,846.71   160,147,758.35   368,896,933.08   18,803,185.81   69,859,806.19   163,435,279.79   154,119,039.06
   
 
 
 
 
 
 
 
 
 
 
 
 
 

A-8


Consolidated Edison Development, Inc.
Consolidating Income Statement
For the Year Ended December 31, 2003

 
  CEI
Consolidated
Edison
Development, Inc
Consolidated

  Elimination
  CED
Generation
Holding
Company, LLC

  Consolidated
Edison
Energy of
Massachusetts, Inc.

  Consolidated
Edison
Development Inc.

  Consolidated
Edison
Leasing LLC

  Consolidated
Edison
Development
Guatemala, Ltd.

  CED
Ada, Inc.

  Con Edison
Leasing LLC

  CED/SCS
Newington, LLC

  CEDST, LLC
  CEEMI
Expansion, Inc.

  Ocean
Peaking
Power, LLC

  CED
Rock
Springs, Inc.

Operating Revenues                                                        
Non Utility   186,605,682.91   21,404,603.43   66,598,206.46   4,802,265.80   (21,165,010.26 ) 5,533,833.04   321,592.08     10,097,482.33   40,621,950.48     1,785,294.24   27,199,048.00   29,406,417.31
Non Utility Intercompany   116,067,553.74       13,277,863.64             89,657,337.83     875,906.03   4,100,950.09   8,155,496.15
   
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating Revenues   302,673,236.65   21,404,603.43   66,598,206.46   18,080,129.44   (21,165,010.26 ) 5,533,833.04   321,592.08     10,097,482.33   130,279,288.31     2,661,200.27   31,299,998.09   37,561,913.46
   
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating Expenses                                                        
Purchased Power   43,884,979.45                         21,976,988.12   21,907,991.33
Fuel   146,624,459.36     23,043,710.02   6,745,181.21             106,516,275.75     2,446,511.44   2,361,270.20   5,511,510.74
Other Operations   76,092,177.71     7,747,282.94   6,381,254.40   7,586,384.82     842.40       46,221,157.99   83,192.00   2,330,891.86   2,662,230.42   3,078,940.88
Impairment Charges   17,644,318.45         15,062,176.45     2,582,142.00              
Depreciation and Amortization   19,559,969.73     11,553,614.67   1,757,539.71   115,583.93             768,195.00   1,013,566.28   2,232,308.27   2,119,161.87
Taxes, Other Than Income Taxes   6,311,852.64     711,110.72   803,521.67             3,989,267.66     322,508.95   160,443.30   325,000.34
State Income Tax   (14,354,979.30 )       (14,802,357.64 )                 447,378.34
Federal Income Tax   (48,070,710.82 )   (2,276,623.93 ) (1,503,214.84 ) 14,914,314.37   (7,986,476.00 )   321,307.00   (10,544,761.00 ) (25,345,463.22 ) (2,091,778.00 ) (10,714,171.80 ) (3,226,976.86 ) 383,133.46
State Income Tax Deferred   11,719,276.20         11,719,276.20                  
Federal Income Tax Deferred   41,163,708.92     5,774,775.30   2,057,380.92   (16,024,322.91 ) 10,221,467.63   (1,057,053.59 )   14,645,989.94   14,065,381.15   (316,601.00 ) 8,533,939.16   2,882,272.63   380,479.69
   
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating Expenses   300,575,052.34     46,553,869.72   16,241,663.07   18,571,055.22   2,234,991.63   1,525,930.81   321,307.00   4,101,228.94   145,446,619.33   (1,556,992.00 ) 3,933,245.89   29,048,536.08   34,153,596.65
   
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating Income   2,098,184.31   21,404,603.43   20,044,336.74   1,838,466.37   (39,736,065.48 ) 3,298,841.41   (1,204,338.73 ) (321,307.00 ) 5,996,253.39   (15,167,331.02 ) 1,556,992.00   (1,272,045.62 ) 2,251,462.01   3,408,316.81
   
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Income (Deductions)                                                        
Investment Income   1,165,111.54   (14,695,095.22 )   601,208.65   13,527,168.42   548,933.64   (323,722.84 ) 785,786.00   498,391.37   101,839.73   120,601.79      
Other Deductions   (2,124,834.74 )   (1,811,797.73 )             (313,037.01 )      
   
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Income (Deductions)   (959,723.20 ) (14,695,095.22 ) (1,811,797.73 ) 601,208.65   13,527,168.42   548,933.64   (323,722.84 ) 785,786.00   498,391.37   (211,197.28 ) 120,601.79      
   
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest Charges                                                        
Interest on Long-Term Debt   13,996,865.41   (10,910,909.96 ) 13,708,655.70   1,649,887.64   1,167,916.05     46,947.95       927,797.00     1,879,667.74   2,775,075.06   2,751,828.23
   
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Interest Charges   13,996,865.41   (10,910,909.96 ) 13,708,655.70   1,649,887.64   1,167,916.05     46,947.95       927,797.00     1,879,667.74   2,775,075.06   2,751,828.23
   
 
 
 
 
 
 
 
 
 
 
 
 
 
Income Before Cumulative Effect of Changes in Accounting Principle   (12,858,404.30 ) 17,620,418.17   4,523,883.31   789,787.38   (27,376,813.11 ) 3,847,775.05   (1,575,009.52 ) 464,479.00   6,494,644.76   (16,306,325.30 ) 1,677,593.79   (3,151,713.36 ) (523,613.05 ) 656,488.58
   
 
 
 
 
 
 
 
 
 
 
 
 
 
Cumulative Effect of Change in Accounting Principle   3,422,863.36     6,008,530.00     319,231.24     2,114,269.38       (5,019,167.26 )      
   
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Income for Common Stock   (9,435,540.94 ) 17,620,418.17   10,532,413.31   789,787.38   (27,057,581.87 ) 3,847,775.05   539,259.86   464,479.00   6,494,644.76   (21,325,492.56 ) 1,677,593.79   (3,151,713.36 ) (523,613.05 ) 656,488.58
   
 
 
 
 
 
 
 
 
 
 
 
 
 

A-9


Exhibit B


ORGANIZATION CHART

        REFERENCE IS MADE TO ITEMS 1 AND 4 OF THIS FORM U-3A-2 FOR A DESCRIPTION OF THE COMPANIES IN CLAIMANT'S HOLDING COMPANY SYSTEM, INCLUDING INTERESTS IN SUBSIDIARIES.


CLAIMANT

A. Con Edison   B. O&R   C. CES   D. CEDI   E. CEEI   F. CEC Holding   G. Merger Subs
A.1-DIDCO   B.1-RECO   C.1-CAO   D.1-CEDG   E.1.CSSI   F.1.CEC Member    
A.2-DCK   B.1.a-Enserve       D.1.a-EPCA       F.2. CECI    
A.3-Honeoye   B.2.-Pike       D.1.a.(i)-GENOR (FUCO)       F.3. CECLLC    
A.4-SHL   B.3.-Clove       D.2-CEL           F.3.a. CECOV    
    B.4.-ORDEVCO       D.3-CELLC            
            D.4-CEDA            
                D.4.a.-CDA            
                 D.4.a.(i)-ACLP            
            D.5-CED/SCS            
                D.5.a-NELLC (EWG)            
            D.6.-CED Holding            
                D.6.a.-CED Operating            
                D.6.b.-CEDL/CGLC            
                D.6.c.-Lakewood Cogen
    (EWG)
           
            D.7.-OPP (EWG)            
            D.8.-CEEMI (EWG)            
            D.9.-CEDST            
                D.9.a-CED42            
            D.10-CEDRS (EWG)            
            D.11-CEDAF            
                D.11.a-THL            
                D.11.a(i)-TLC            
            D.12.CED Holding II            

B-1




QuickLinks

EXHIBIT A
EXHIBIT B
CEI Consolidating Balance Sheet December 31, 2003
CEI Consolidating Income Statement For The Year Ended December 31, 2003
Orange and Rockland Utilities, Inc. Consolidating Balance Sheet December 31, 2003
Orange and Rockland Utilities, Inc. Consolidating Balance Sheet December 31, 2003
Orange and Rockland Utilities, Inc. Consolidating Income Statement For the Year Ended December 31, 2003
Consolidated Edison Development, Inc. Consolidating Balance Sheet For The Period Ended December 31, 2003
Consolidated Edison Development, Inc. Consolidating Balance Sheet For The Period Ended December 31, 2003
Consolidated Edison Development, Inc. Consolidating Income Statement For the Year Ended December 31, 2003
ORGANIZATION CHART
CLAIMANT