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Derivative Instruments and Hedging Activities (Tables) | 9 Months Ended
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Sep. 30, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Offsetting of Liabilities | The fair values of the Companies’ derivatives including the offsetting of assets and liabilities on the consolidated balance sheet at September 30, 2022 and December 31, 2021 were:
(Millions of Dollars) | 2022 |  | 2021 |
Balance Sheet Location | Gross Amounts of Recognized Assets/(Liabilities) | Gross Amounts Offset | Net Amounts of Assets/ (Liabilities) (a) |  | Gross Amounts of Recognized Assets/(Liabilities) | Gross Amounts Offset | Net Amounts of Assets/ (Liabilities) (a) |
Con Edison |  |  |  |  |  |  |  |
Fair value of derivative assets |  |  |  |  |  |  |  |
Current | $667 | $(415) | $252 | (b)(c) | $285 | $(158) | $127 | (b)
Noncurrent | 303 | (53) |  | 250 | (c) | 90 | (13) | 77 | (d)
Total fair value of derivative assets | $970 | $(468) | $502 |  | $375 | $(171) | $204 |
Fair value of derivative liabilities |  |  |  |  |  |  |  |
Current | $(212) | $142 | $(70) | (b) | $(289) | $137 | $(152) | (d)
Noncurrent | (68) | 37 | (31) |  | (94) | 10 | (84) | (d)
Total fair value of derivative liabilities | $(280) | $179 | $(101) |  | $(383) | $147 | $(236) |
Net fair value derivative assets/(liabilities) | $690 | ($289) |  | $401 |  | $(8) | $(24) | $(32) |
CECONY |  |  |  |  |  |  |  |
Fair value of derivative assets |  |  |  |  |  |  |  |
Current | $521 | $(335) | $186 | (b) | $135 | $(64) | $71 | (b)
Noncurrent | 181 | (45) | 136 |  | 71 | (15) | 56 |
Total fair value of derivative assets | $702 | $(380) | $322 |  | $206 | $(79) | $127 |
Fair value of derivative liabilities |  |  |  |  |  |  |  |
Current | $(134) | $84 | $(50) |  | $(131) | $43 | $(88) |
Noncurrent | (50) | 35 | (15) |  | (50) | 10 | (40) |
Total fair value of derivative liabilities | $(184) | $119 | $(65) |  | $(181) | $53 | $(128) |
Net fair value derivative assets/(liabilities) | $518 | $(261) | $257 |  | $25 | $(26) | $(1) |
(a)Derivative instruments and collateral were offset on the consolidated balance sheet as applicable under the accounting rules. The Companies enter into master agreements for their commodity derivatives. These agreements typically provide offset in the event of contract termination. In such case, generally the non-defaulting party’s payable will be offset by the defaulting party’s payable. The non-defaulting party will customarily notify the defaulting party within a specific time period and come to an agreement on the early termination amount. (b)At September 30, 2022, margin deposits for Con Edison ($4 million and an immaterial amount) were classified as derivative assets and derivative liabilities, respectively, and for CECONY $4 million was classified as derivative assets on the consolidated balance sheet, but not included in the table. At December 31, 2021 margin deposits for Con Edison and CECONY of $1 million and an immaterial amount, respectively, were classified as derivative assets on the consolidated balance sheet, but not included in the table. Margin is collateral, typically cash, that the holder of a derivative instrument is required to deposit in order to transact on an exchange and to cover its potential losses with its broker or the exchange. (c)Includes amounts for interest rate swaps of $21 million in current assets and $84 million in noncurrent assets. At September 30, 2022, the Clean Energy Businesses had interest rate swaps with notional amounts of $996 million. The expiration dates of the swaps range from 2025-2041. (d)Includes amounts for interest rate swaps of $4 million in noncurrent assets, $(20) million in current liabilities and $(38) million in noncurrent liabilities. At December 31, 2021, the Clean Energy Businesses had interest rate swaps with notional amounts of $1,031 million. The expiration dates of the swaps ranged from 2025-2041.
Offsetting of Assets | The fair values of the Companies’ derivatives including the offsetting of assets and liabilities on the consolidated balance sheet at September 30, 2022 and December 31, 2021 were:
(Millions of Dollars) | 2022 |  | 2021 |
Balance Sheet Location | Gross Amounts of Recognized Assets/(Liabilities) | Gross Amounts Offset | Net Amounts of Assets/ (Liabilities) (a) |  | Gross Amounts of Recognized Assets/(Liabilities) | Gross Amounts Offset | Net Amounts of Assets/ (Liabilities) (a) |
Con Edison |  |  |  |  |  |  |  |
Fair value of derivative assets |  |  |  |  |  |  |  |
Current | $667 | $(415) | $252 | (b)(c) | $285 | $(158) | $127 | (b)
Noncurrent | 303 | (53) |  | 250 | (c) | 90 | (13) | 77 | (d)
Total fair value of derivative assets | $970 | $(468) | $502 |  | $375 | $(171) | $204 |
Fair value of derivative liabilities |  |  |  |  |  |  |  |
Current | $(212) | $142 | $(70) | (b) | $(289) | $137 | $(152) | (d)
Noncurrent | (68) | 37 | (31) |  | (94) | 10 | (84) | (d)
Total fair value of derivative liabilities | $(280) | $179 | $(101) |  | $(383) | $147 | $(236) |
Net fair value derivative assets/(liabilities) | $690 | ($289) |  | $401 |  | $(8) | $(24) | $(32) |
CECONY |  |  |  |  |  |  |  |
Fair value of derivative assets |  |  |  |  |  |  |  |
Current | $521 | $(335) | $186 | (b) | $135 | $(64) | $71 | (b)
Noncurrent | 181 | (45) | 136 |  | 71 | (15) | 56 |
Total fair value of derivative assets | $702 | $(380) | $322 |  | $206 | $(79) | $127 |
Fair value of derivative liabilities |  |  |  |  |  |  |  |
Current | $(134) | $84 | $(50) |  | $(131) | $43 | $(88) |
Noncurrent | (50) | 35 | (15) |  | (50) | 10 | (40) |
Total fair value of derivative liabilities | $(184) | $119 | $(65) |  | $(181) | $53 | $(128) |
Net fair value derivative assets/(liabilities) | $518 | $(261) | $257 |  | $25 | $(26) | $(1) |
(a)Derivative instruments and collateral were offset on the consolidated balance sheet as applicable under the accounting rules. The Companies enter into master agreements for their commodity derivatives. These agreements typically provide offset in the event of contract termination. In such case, generally the non-defaulting party’s payable will be offset by the defaulting party’s payable. The non-defaulting party will customarily notify the defaulting party within a specific time period and come to an agreement on the early termination amount. (b)At September 30, 2022, margin deposits for Con Edison ($4 million and an immaterial amount) were classified as derivative assets and derivative liabilities, respectively, and for CECONY $4 million was classified as derivative assets on the consolidated balance sheet, but not included in the table. At December 31, 2021 margin deposits for Con Edison and CECONY of $1 million and an immaterial amount, respectively, were classified as derivative assets on the consolidated balance sheet, but not included in the table. Margin is collateral, typically cash, that the holder of a derivative instrument is required to deposit in order to transact on an exchange and to cover its potential losses with its broker or the exchange. (c)Includes amounts for interest rate swaps of $21 million in current assets and $84 million in noncurrent assets. At September 30, 2022, the Clean Energy Businesses had interest rate swaps with notional amounts of $996 million. The expiration dates of the swaps range from 2025-2041. (d)Includes amounts for interest rate swaps of $4 million in noncurrent assets, $(20) million in current liabilities and $(38) million in noncurrent liabilities. At December 31, 2021, the Clean Energy Businesses had interest rate swaps with notional amounts of $1,031 million. The expiration dates of the swaps ranged from 2025-2041.
Realized and Unrealized Gains or Losses on Commodity Derivatives | The following table presents the realized and unrealized gains or losses on derivatives that have been deferred or recognized in earnings for the three and nine months ended September 30, 2022 and 2021:
|  | For the Three Months Ended September 30,
|  | Con Edison |  | CECONY
(Millions of Dollars) | Balance Sheet Location | 2022 | 2021 |  | 2022 | 2021
Pre-tax gains/(losses) deferred in accordance with accounting rules for regulated operations: |  |  |
Current | Deferred derivative gains | $31 | $296 |  | $30 | $279
Noncurrent | Deferred derivative gains | 23 | 70 |  | 17 | 66
Total deferred gains/(losses) |  | $54 | $366 |  | $47 | $345
Current | Deferred derivative losses | $41 | $(4) |  | $37 | $(3)
Current | Recoverable energy costs | 168 | 17 |  | 152 | 13
Noncurrent | Deferred derivative losses | 49 | (61) |  | 45 | (55)
Total deferred gains/(losses) |  | $258 | $(48) |  | $234 | $(45)
Net deferred gains/(losses) |  | $312 | $318 |  | $281 | $300
| Income Statement Location |  |  |  |  |
Pre-tax gains/(losses) recognized in income |  |  |  |  |
| Gas purchased for resale | $(2) | $2 |  | $— |  | $— |
| Non-utility revenue | (1) | (23) |  | — |  | — |
| Other operations and maintenance expense | (1) | 1 |  | (1) |  | 1 |
| Other interest expense (a) | 49 | 11 |  | — |  | — |
Total pre-tax gains/(losses) recognized in income | $45 | $(9) |  | ($1) |  | $1 |
(a)See (b) below.
|  | For the Nine Months Ended September 30,
|  | Con Edison |  | CECONY
(Millions of Dollars) | Balance Sheet Location | 2022 | 2021 |  | 2022 | 2021
Pre-tax gains/(losses) deferred in accordance with accounting rules for regulated operations: |  |  |
Current | Deferred derivative gains | $379 | $443 |  | $350 | $415
Noncurrent | Deferred derivative gains | 91 | 106 |  | 79 | 97
Total deferred gains/(losses) |  | $470 | $549 |  | $429 | $512
Current | Deferred derivative losses | $50 | $25 |  | $45 | $22
Current | Recoverable energy costs | 357 | (30) |  | 324 | (29)
Noncurrent | Deferred derivative losses | 19 | (16) |  | 18 | (13)
Total deferred gains/(losses) |  | $426 | $(21) |  | $387 | $(20)
Net deferred gains/(losses) (a) |  | $896 | $528 |  | $816 | $492
| Income Statement Location |  |  |  |  |
Pre-tax gains/(losses) recognized in income |  |  |  |  |
| Gas purchased for resale | $1 | $4 |  | $— |  | $— |
| Non-utility revenue | (23) | (22) |  | — |  | — |
| Other operations and maintenance expense | 4 | 5 |  | 4 |  | 5 |
| Other interest expense (b) | 158 | 45 |  | — |  | — |
Total pre-tax gains/(losses) recognized in income | $140 | $32 |  | $4 |  | $5 |
(a)Unrealized net deferred gains on electric and gas derivatives for the Utilities increased as a result of higher electric and gas commodity prices during the nine months ended September 30, 2022. Upon settlement, short-term deferred derivative gains generally reduce the recoverable costs of electric and gas purchases. (b)Gains recognized in other interest expense relate to interest rate swaps at the Clean Energy Businesses. The gains recognized are consistent with the increasing interest rate environment in 2022.
Hedged Volume of Derivative Transactions | The following table presents the hedged volume of Con Edison’s and CECONY’s commodity derivative transactions at September 30, 2022:
| Electric Energy (MWh) (a)(b) | Capacity (MW) (a) | Natural Gas (Dt) (a)(b) | Refined Fuels (gallons)
Con Edison | 29,387,725 |  | 36,037 |  | 289,274,503 |  | 672,000 |
CECONY | 27,281,075 |  | 22,350 |  | 272,830,000 |  | 672,000 |
(a)Volumes are reported net of long and short positions, except natural gas collars where the volumes of long positions are reported. (b)Excludes electric congestion and gas basis swap contracts, which are associated with electric and gas contracts and hedged volumes.
Aggregate Fair Value of Companies' Derivative Instruments with Credit-Risk-Related Contingent Features | The following table presents the aggregate fair value of the Companies’ derivative instruments with credit-risk-related contingent features that are in a net liability position, the collateral posted for such positions and the additional collateral that would have been required to be posted had the lowest applicable credit rating been reduced one level and to below investment grade at September 30, 2022:
(Millions of Dollars) | Con Edison (a) |  | CECONY (a) |
Aggregate fair value – net liabilities | $116 |  | $55 |
Collateral posted | 100 |  | 100 |
Additional collateral (b) (downgrade one level from current ratings) | 25 |  | — |
Additional collateral (b)(c) (downgrade to below investment grade from current ratings) | 59 |  | 20 |
(a)Non-derivative transactions for the purchase and sale of electricity and gas and qualifying derivative instruments, which have been designated as normal purchases or normal sales, are excluded from the table. These transactions primarily include purchases of electricity from independent system operators. In the event the Utilities and the Clean Energy Businesses were no longer extended unsecured credit for such purchases, the Companies would be required to post $6 million of additional collateral at September 30, 2022. For certain other such non-derivative transactions, the Companies could be required to post collateral under certain circumstances, including in the event counterparties had reasonable grounds for insecurity. (b)The Companies measure the collateral requirements by taking into consideration the fair value amounts of derivative instruments that contain credit-risk-related contingent features that are in a net liability position plus amounts owed to counterparties for settled transactions and amounts required by counterparties for minimum financial security. The fair value amounts represent unrealized losses, net of any unrealized gains where the Companies have a legally enforceable right to offset. (c)Derivative instruments that are net assets have been excluded from the table. At September 30, 2022, if Con Edison had been downgraded to below investment grade, it would have been required to post additional collateral for such derivative instruments of $96 million.

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- Definition Tabular disclosure of credit derivatives which includes information by sellers of credit derivatives, about each credit derivative, or each group of similar credit derivatives, including (a) the nature of the credit derivative - its term, how it arose, the events or circumstances that would require the seller to perform under the credit derivative, and the current status of the payment/performance risk of the credit derivative; (b) the maximum potential amount of future payments (undiscounted) the seller could be required to make under the credit derivative; (c) the current fair value of the credit derivative; and (d) the nature of any recourse provisions under the credit derivative, and any assets held either as collateral or by third parties. A credit derivative is a derivative instrument (1) in which one or more of its underlyings are related to the credit risk of a specified entity (or a group of entities) or an index based on the credit risk of a group of entities and (2) that exposes the seller to potential loss from credit-risk-related events specified in the contract. Examples of credit derivatives within the scope of this paragraph include, but are not limited to, credit default swaps, credit spread options, and credit index products; also includes a hybrid instrument that has an embedded credit derivative (for example, but not limited to, a credit-linked note). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4J -URI https://asc.fasb.org/extlink&oid=125515794&loc=SL5708773-113959 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4K -URI https://asc.fasb.org/extlink&oid=125515794&loc=SL5708775-113959 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4L -URI https://asc.fasb.org/extlink&oid=125515794&loc=SL5708777-113959 + Details
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- Definition Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -URI https://asc.fasb.org/extlink&oid=125515794&loc=SL5624163-113959 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1B -URI https://asc.fasb.org/extlink&oid=125515794&loc=SL5580258-113959 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 2 -URI https://asc.fasb.org/extlink&oid=125515794&loc=d3e41620-113959 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1A -URI https://asc.fasb.org/extlink&oid=125515794&loc=SL5579245-113959 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4 -URI https://asc.fasb.org/extlink&oid=125515794&loc=d3e41638-113959 Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 8 -URI https://asc.fasb.org/extlink&oid=125515794&loc=d3e41678-113959 Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 5 -URI https://asc.fasb.org/extlink&oid=125515794&loc=d3e41641-113959 Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI https://asc.fasb.org/extlink&oid=125515794&loc=SL5624171-113959 Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1 -URI https://asc.fasb.org/extlink&oid=125515794&loc=SL5579240-113959 + Details
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