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Pension Benefits (Tables) | 12 Months Ended
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Dec. 31, 2019
Retirement Benefits [Abstract] |
Total Periodic Benefit Costs | The components of the Companies’ total periodic benefit costs for 2019, 2018 and 2017 were as follows:
| Con Edison | CECONY
(Millions of Dollars) | 2019 | 2018 | 2017 | 2019 | 2018 | 2017
Service cost – including administrative expenses | $250 | $290 | $263 | $232 | $272 | $246
Interest cost on projected benefit obligation | 601 | 561 | 591 | 564 | 525 | 554
Expected return on plan assets | (988) | (1,033) | (968) | (936) | (979) | (917)
Recognition of net actuarial loss | 518 | 688 | 595 | 492 | 651 | 563
Recognition of prior service cost/(credit) | (17) | (17) | (17) | (19) | (19) | (19)
TOTAL PERIODIC BENEFIT COST | $364 | $489 | $464 | $333 | $450 | $427
Cost capitalized | (108) | (127) | (181) | (102) | (119) | (169)
Reconciliation to rate level | (15) | (92) | (34) | (12) | (100) | (41)
Total expense recognized | $241 | $270 | $249 | $219 | $231 | $217
The components of the Companies’ total periodic postretirement benefit costs for 2019, 2018 and 2017 were as follows:
| Con Edison | CECONY
(Millions of Dollars) | 2019 | 2018 | 2017 | 2019 | 2018 | 2017
Service cost | $18 | $20 | $20 | $13 | $14 | $13
Interest cost on accumulated other postretirement benefit obligation | 44 | 42 | 46 | 36 | 34 | 38
Expected return on plan assets | (66) | (73) | (69) | (54) | (63) | (61)
Recognition of net actuarial loss/(gain) | (9) | 8 | 2 | (10) | 3 | (3)
Recognition of prior service credit | (2) | (6) | (17) | (2) | (2) | (11)
TOTAL PERIODIC POSTRETIREMENT BENEFIT CREDIT | $(15) | $(9) | $(18) | $(17) | $(14) | $(24)
Cost capitalized | (7) | (8) | 8 | (5) | (6) | 10
Reconciliation to rate level | 12 | 8 | (4) | 7 | 9 | (2)
Total credit recognized | $(10) | $(9) | ($14) | $(15) | $(11) | ($16)
Schedule of Funded Status | The funded status at December 31, 2019, 2018 and 2017 was as follows:
| Con Edison | CECONY
(Millions of Dollars) | 2019 | 2018 |  | 2017 | 2019 |  | 2018 |  | 2017 |
CHANGE IN PROJECTED BENEFIT OBLIGATION |  |  |  |  |  |
Projected benefit obligation at beginning of year | $14,449 | $15,536 | $14,095 | $13,542 | $14,567 | $13,203
Service cost – excluding administrative expenses | 245 | 286 | 259 | 228 | 267 | 241
Interest cost on projected benefit obligation | 601 | 561 | 591 | 564 | 525 | 554
Net actuarial loss/(gain) | 2,191 | (1,219) | 1,231 | 2,076 | (1,159) | 1,171
Plan amendments | 15 | — |  | 6 | — |  | — |  | — |
Benefits paid | (709) | (715) | (646) | (660) | (658) | (602)
PROJECTED BENEFIT OBLIGATION AT END OF YEAR | $16,792 | $14,449 | $15,536 | $15,750 | $13,542 | $14,567
CHANGE IN PLAN ASSETS |  |  |  |  |  |
Fair value of plan assets at beginning of year | $13,450 | $14,274 | $12,472 | $12,744 | $13,519 | $11,815
Actual return on plan assets | 2,556 | (536) | 2,041 | 2,425 | (507) | 1,935
Employer contributions | 350 | 473 | 450 | 318 | 434 | 412
Benefits paid | (709) | (715) | (646) | (660) | (658) | (602)
Administrative expenses | (39) | (46) | (43) | (37) | (44) | (41)
FAIR VALUE OF PLAN ASSETS AT END OF YEAR | $15,608 | $13,450 | $14,274 | $14,790 | $12,744 | $13,519
FUNDED STATUS | $(1,184) | $(999) | $(1,262) | $(960) | $(798) | $(1,048)
Unrecognized net loss | $2,604 | $2,464 | $2,760 | $2,466 | $2,338 | $2,624
Unrecognized prior service costs | (173) | (205) | (223) | (202) | (222) | (242)
Accumulated benefit obligation | 15,015 | 13,030 | 13,897 | 14,010 | 12,161 | 12,972
The funded status of the programs at December 31, 2019, 2018 and 2017 were as follows:
| Con Edison | CECONY
(Millions of Dollars) | 2019 | 2018 |  | 2017 |  | 2019 |  | 2018 |  | 2017 |
CHANGE IN BENEFIT OBLIGATION |  |  |  |  |  |
Benefit obligation at beginning of year | $1,114 | $1,219 | $1,198 | $913 | $985 | $1,007
Service cost | 18 | 20 | 20 | 13 | 14 | 13
Interest cost on accumulated postretirement benefit obligation | 44 | 42 | 46 | 36 | 34 | 38
Amendments | (14) | — |  | — |  | — |  | — |  | — |
Net actuarial loss/(gain) | 264 | (70) | 53 | 252 | (32) | 16
Benefits paid and administrative expenses, net of subsidies | (110) | (135) | (134) | (100) | (125) | (124)
Participant contributions | 41 | 38 | 36 | 40 | 37 | 35
BENEFIT OBLIGATION AT END OF YEAR | $1,357 | $1,114 | $1,219 | $1,154 | $913 | $985
CHANGE IN PLAN ASSETS |  |  |  |  |  |
Fair value of plan assets at beginning of year | $885 | $1,039 | $975 | $759 | $893 | $851
Actual return on plan assets | 198 | (66) | 150 | 165 | (54) | 130
Employer contributions | 7 | 6 | 17 | 6 | 6 | 8
Employer group waiver plan subsidies | 23 | 34 | 34 | 22 | 32 | 30
Participant contributions | 40 | 37 | 35 | 40 | 37 | 35
Benefits paid | (127) | (165) | (172) | (120) | (155) | (161)
FAIR VALUE OF PLAN ASSETS AT END OF YEAR | $1,026 | $885 | $1,039 | $872 | $759 | $893
FUNDED STATUS | $(331) | $(229) | $(180) | $(282) | $(154) | $(92)
Unrecognized net loss/(gain) | $155 | $14 | $(47) | $149 | $(2) | $(85)
Unrecognized prior service costs | (19) | (8) | (14) | (3) | (5) | (7)
Schedule of Assumptions | The actuarial assumptions were as follows:
| 2019 |  | 2018 |  | 2017 |
Weighted-average assumptions used to determine benefit obligations at December 31: |  |  |
Discount rate | 3.35 | % | 4.25 | % | 3.70 | %
Rate of compensation increase |  |  |
CECONY | 3.80 | % | 4.25 | % | 4.25 | %
O&R | 3.20 | % | 4.00 | % | 4.00 | %
Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31: |  |  |
Discount rate | 4.25 | % | 3.70 | % | 4.25 | %
Expected return on plan assets | 7.00 | % | 7.50 | % | 7.50 | %
Rate of compensation increase |  |  |
CECONY | 4.25 | % | 4.25 | % | 4.25 | %
O&R | 4.00 | % | 4.00 | % | 4.00 | %
The actuarial assumptions were as follows:
| 2019 |  | 2018 |  | 2017 |
Weighted-average assumptions used to determine benefit obligations at December 31: |  |  |
Discount Rate |  |  |
CECONY | 3.10 | % | 4.15 | % | 3.55 | %
O&R | 3.35 | % | 4.30 | % | 3.70 | %
Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31: |  |  |
Discount Rate |  |  |
CECONY | 4.15 | % | 3.55 | % | 4.00 | %
O&R | 4.30 | % | 3.70 | % | 4.20 | %
Expected Return on Plan Assets | 6.80 | % | 7.50 | % | 7.50 | %
Schedule of Expected Benefit Payments | Based on current assumptions, the Companies expect to make the following benefit payments over the next ten years:
(Millions of Dollars) | 2020 | 2021 | 2022 | 2023 | 2024 | 2025-2029
Con Edison | $744 | $756 | $770 | $788 | $801 | $4,181
CECONY | 688 | 699 | 713 | 728 | 741 | 3,883
Based on current assumptions, the Companies expect to make the following benefit payments over the next ten years, net of receipt of governmental subsidies and participant contributions:
(Millions of Dollars) | 2020 | 2021 | 2022 | 2023 | 2024 | 2025-2029
Con Edison | $96 | $95 | $93 | $92 | $91 | $422
CECONY | 87 | 85 | 83 | 82 | 80 | 368
Schedule of Plan Assets Allocations | The asset allocations for the pension plan at the end of 2019, 2018 and 2017, and the target allocation for 2020 are as follows:
| Target Allocation Range |  | Plan Assets at December 31,
Asset Category | 2020 |  | 2019 |  |  | 2018 |  |  | 2017 |
Equity Securities | 45% - 55% |  | 51 | % |  | 51 | % |  | 58 | %
Debt Securities | 33% - 43% |  | 38 | % |  | 39 | % |  | 33 | %
Real Estate | 10% - 14% |  | 11 | % |  | 10 | % |  | 9 | %
Total | 100% |  | 100 | % |  | 100 | % |  | 100 | %
The asset allocations for CECONY’s other postretirement benefit plans at the end of 2019, 2018 and 2017, and the target allocation for 2020 are as follows:
| Target Allocation Range |  | Plan Assets at December 31,
Asset Category | 2020 |  | 2019 |  |  | 2018 |  |  | 2017 |
Equity Securities | 42%-80% |  | 54 | % |  | 52 | % |  | 60 | %
Debt Securities | 20%-58% |  | 46 | % |  | 48 | % |  | 40 | %
Total | 100% |  | 100 | % |  | 100 | % |  | 100 | %
Schedule of Fair Value of Plan Assets | The fair values of the pension plan assets at December 31, 2019 by asset category are as follows:
(Millions of Dollars) | Level 1 |  |  | Level 2 |  |  | Total |
Investments within the fair value hierarchy |  |  |  |  |
U.S. Equity (a) | $3,652 |  |  | $— |  |  | $3,652
International Equity (b) | 3,354 |  | — |  |  | 3,354
U.S. Government Issued Debt (c) | — |  |  | 1,496 |  | 1,496
Corporate Bonds Debt (d) | — |  |  | 3,260 |  | 3,260
Structured Assets Debt (e) | — |  |  | 173 |  | 173
Other Fixed Income Debt (f) | — |  |  | 955 |  | 955
Cash and Cash Equivalents (g) | — |  |  | 326 |  | 326
Futures (h) | — |  |  | — |  |  | — |
Total investments within the fair value hierarchy | $7,006 |  | $6,210 |  | $13,216
Investments measured at NAV per share (n) |  |  |  |  |  |  |
Private Equity (i) |  |  |  |  | 555
Real Estate (j) |  |  |  |  | 1,806
Hedge Funds (k) |  |  |  |  | 270
Total investments valued using NAV per share |  |  |  |  | $2,631
Funds for retiree health benefits (l) | (110) |  | (98) |  | (208)
Funds for retiree health benefits measured at NAV per share (l)(n) |  |  |  |  | (42)
Total funds for retiree health benefits |  |  |  |  | $(250)
Investments (excluding funds for retiree health benefits) | $6,896 |  | $6,112 |  | $15,597
Pending activities (m) |  |  |  |  | 11
Total fair value of plan net assets |  |  |  |  | $15,608
(a) | U.S. Equity includes both actively- and passively-managed assets with investments in domestic equity index funds and actively-managed small-capitalization equities.
(b) | International Equity includes international equity index funds and actively-managed international equities.
(c) | U.S. Government Issued Debt includes agency and treasury securities.
(d) | Corporate Bonds Debt consists of debt issued by various corporations.
(e) | Structured Assets Debt includes commercial-mortgage-backed securities and collateralized mortgage obligations.
(f) | Other Fixed Income Debt includes municipal bonds, sovereign debt and regional governments.
(g) | Cash and Cash Equivalents include short term investments, money markets, foreign currency and cash collateral.
(h) | Futures consist of exchange-traded financial contracts encompassing U.S. Equity, International Equity and U.S. Government indices.
(i) | Private Equity consists of global equity funds that are not exchange-traded.
(j) | Real Estate investments include real estate funds based on appraised values that are broadly diversified by geography and property type.
(k) | Hedge Funds are within a commingled structure which invests in various hedge fund managers who can invest in all financial instruments.
(l) | The Companies set aside funds for retiree health benefits through a separate account within the pension trust, as permitted under Section 401(h) of the Internal Revenue Code of 1986, as amended. In accordance with the Code, the plan’s investments in the 401(h) account may not be used for, or diverted to, any purpose other than providing health benefits for retirees. The net assets held in the 401(h) account are calculated based on a pro-rata percentage allocation of the net assets in the pension plan. The related obligations for health benefits are not included in the pension plan’s obligations and are included in the Companies’ other postretirement benefit obligation. See Note F.
(m) | Pending activities include security purchases and sales that have not settled, interest and dividends that have not been received and reflects adjustments for available estimates at year end.
(n) | In accordance with ASU 2015-07, Fair Value Measurements (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or its equivalent), certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy.
The fair values of the pension plan assets at December 31, 2018 by asset category are as follows:
(Millions of Dollars) | Level 1 |  |  | Level 2 |  |  | Total
Investments within the fair value hierarchy |  |  |  |  |
U.S. Equity (a) | $3,515 |  | $10 |  | $3,525
International Equity (b) | 2,896 |  | — |  |  | 2,896
U.S. Government Issued Debt (c) | — |  |  | 1,886 |  | 1,886
Corporate Bonds Debt (d) | — |  |  | 2,619 |  | 2,619
Structured Assets Debt (e) | — |  |  | 6 |  | 6
Other Fixed Income Debt (f) | — |  |  | 121 |  | 121
Cash and Cash Equivalents (g) | 160 |  | 556 |  | 716
Futures (h) | 568 |  | — |  |  | 568
Total investments within the fair value hierarchy | $7,139 |  | $5,198 |  | $12,337
Investments measured at NAV per share (n) |  |  |  |  |
Private Equity (i) |  |  |  |  | 440
Real Estate (j) |  |  |  |  | 1,310
Hedge Funds (k) |  |  |  |  |  | 255
Total investments valued using NAV per share |  |  |  |  | $2,005
Funds for retiree health benefits (l) | (118) |  | (86) |  | (204)
Funds for retiree health benefits measured at NAV per share (l)(n) |  |  |  |  | (33)
Total funds for retiree health benefits |  |  |  |  | $(237)
Investments (excluding funds for retiree health benefits) | $7,021 |  | $5,112 |  | $14,105
Pending activities (m) |  |  |  |  | (655)
Total fair value of plan net assets |  |  |  |  | $13,450
(a) - (n) Reference is made to footnotes (a) through (n) in the above table of pension plan assets at December 31, 2019 by asset category. The fair values of the plans' assets at December 31, 2019 by asset category as defined by the accounting rules for fair value measurements (see Note P) are as follows:
(Millions of Dollars) | Level 1 |  |  | Level 2 |  | Total
Equity (a) |  | $— |  |  | $404 |  | $404
Other Fixed Income Debt (b) | — |  |  | 331 |  | 331
Cash and Cash Equivalents (c) | — |  |  | 23 |  | 23
Total investments |  | $— |  |  | $758 |  | $758
Funds for retiree health benefits (d) | 110 |  |  | 98 |  | 208
Investments (including funds for retiree health benefits) |  | $110 |  |  | $856 |  | $966
Funds for retiree health benefits measured at net asset value (d)(e) |  |  |  |  | 42
Pending activities (f) |  |  |  |  | 18
Total fair value of plan net assets |  |  |  |  | $1,026
(a) | Equity includes a passively managed commingled index fund benchmarked to the MSCI All Country World Index.
(b) | Other Fixed Income Debt includes a passively managed commingled index fund benchmarked to the Bloomberg Barclays U.S. Long Credit Index and an active separately managed fund indexed to the Bloomberg Barclays U.S. Long Credit Index.
(c) | Cash and Cash Equivalents include short-term investments and money markets.
(d) | The Companies set aside funds for retiree health benefits through a separate account within the pension trust, as permitted under Section 401(h) of the Internal Revenue Code of 1986, as amended. In accordance with the Code, the plan’s investments in the 401(h) account may not be used for, or diverted to, any purpose other than providing health benefits for retirees. The net assets held in the 401(h) account are calculated based on a pro-rata percentage allocation of the net assets in the pension plan. The related obligations for health benefits are not included in the pension plan’s obligations and are included in the Companies’ other postretirement benefit obligation. See Note E.
(e) | In accordance with ASU 2015-07, Fair Value Measurements (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or its equivalent), certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy.
(f) | Pending activities include security purchases and sales that have not settled, interest and dividends that have not been received, and reflects adjustments for available estimates at year-end.
The fair values of the plans' assets at December 31, 2018 by asset category (see Note P) are as follows:
(Millions of Dollars) | Level 1 |  |  | Level 2 |  | Total
Equity (a) |  | $— |  |  | $322 |  | $322
Other Fixed Income Debt (b) | — |  |  | 289 |  | 289
Cash and Cash Equivalents (c) | — |  |  | 14 |  | 14
Total investments |  | $— |  |  | $625 |  | $625
Funds for retiree health benefits (d) | 118 |  |  | 86 |  | 204
Investments (including funds for retiree health benefits) |  | $118 |  |  | $711 |  | $829
Funds for retiree health benefits measured at net asset value (d)(e) |  |  |  |  | 33
Pending activities (f) |  |  |  |  | 23
Total fair value of plan net assets |  |  |  |  | $885
(a) - (f) Reference is made to footnotes (a) through (f) in the above table of other postretirement benefit plan assets at December 31, 2019 by asset category.
Schedule of Employer Contribution to Defined Savings Plan | The Companies also offer a defined contribution savings plan that covers substantially all employees and made contributions to the plan as follows:
| For the Years Ended December 31,
(Millions of Dollars) | 2019 |  | 2018 |  | 2017
Con Edison | $49 |  | $45 |  | $40
CECONY | 42 |  | 39 |  | 35

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