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Dispositions | 12 Months Ended
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Dec. 31, 2022
Discontinued Operations and Disposal Groups [Abstract] |
Dispositions | Dispositions Crane and Coram In April 2021, a subsidiary of the Clean Energy Businesses entered into an agreement to sell substantially all of its membership interests in a renewable electric project that it developed and also all of its membership interests in a renewable electric project that it acquired in 2016. The sales were completed in June 2021. The combined carrying value of both projects was approximately $192 million in June 2021. The net pre-tax gain on the sales was $3 million ($2 million after-tax) and was included within "Other operations and maintenance" on Con Edison's consolidated income statement for the year ended December 31, 2021. The retained portion of the membership interest in the renewable electric project, of $11 million, was calculated based on a discounted cash flow of future projected earnings, and the retained portion is accounted for as an equity method investment. The portion of the gain attributable to the retained portion of the membership interest was not material for the year ended December 31, 2021. See Note S. The Clean Energy Businesses were held for sale as of December 31, 2022. See "Assets and Liabilities Held for Sale" in Note A and Note X. Stagecoach Gas Services In 2021, a subsidiary of Con Edison Gas Pipeline and Storage, LLC (CET) and its joint venture partner agreed to sell their combined interests in Stagecoach Gas Services LLC (Stagecoach) for a total of $1,225 million, of which $629 million, including closing adjustments, was attributed to CET for its 50 percent interest. The purchase and sale agreement provided for a two-stage closing, the first of which was completed in July 2021 and the second of which was completed in November 2021. See "Investments - Partial Impairment of Investment in Stagecoach Gas Services LLC (Stagecoach)" in Note A. Held-for-Sale Treatment of the Clean Energy Businesses During the first nine months of 2022, Con Edison considered strategic alternatives with respect to the Clean Energy Businesses. On October 1, 2022, following the conclusion of such review and to allow for continued focus on the Utilities and their clean energy transition, Con Edison entered into a purchase and sale agreement pursuant to which Con Edison agreed to sell the Clean Energy Businesses to RWE Renewables Americas, LLC, a subsidiary of RWE Aktiengesellschaft (RWE) for a total of $6,800 million, subject to closing adjustments. The purchase price will be adjusted (i) upward for certain cash and cash equivalents, (ii) downward for certain indebtedness and debt-like items, (iii) downward for certain transaction expenses, (iv) upward or downward to the extent that the net working capital varies from a set target, (v) upward or downward to the extent that capital expenditures incurred prior to the closing of the transaction vary from a set budget, and (vi) downward by the value allocated to certain assets and projects that are not able to be conveyed to RWE upon closing of the transaction. The purchase and sale agreement includes certain customary representations, warranties and covenants. The transaction is subject to customary closing conditions, including, among other things: expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, which occurred on November 28,2022; approval from the FERC under Section 203 of the Federal Power Act, which was obtained on January 20, 2023, and approval by the Committee on Foreign Investment in the United States, which was obtained on February 6, 2023. The transaction is expected to close on or about the end of the first quarter of 2023. Con Edison will retain the Clean Energy Businesses' tax equity interest in the Crane Solar project and its anticipated tax equity interest in two solar projects located in VA. These tax equity partnerships produce renewable energy tax credits that can be used to reduce Con Edison’s federal income tax in the year in which the projects are placed in service. These tax credits would be subject to recapture, in whole or in part, if the assets were sold within a five-year period beginning on the date on which the assets are placed in service. Con Edison will continue to employ HLBV accounting for its interests in these tax equity partnerships. Con Edison will retain any post-sale deferred income taxes (federal and state income taxes, including tax attributes), any valuation allowances associated with the deferred tax assets, all current federal taxes and New York state taxes and the estimated liability for uncertain tax positions. The deferred investment tax credits and accumulated amortized investment tax credits of the Clean Energy Businesses will be recognized in full upon the completion of the sale of the Clean Energy Businesses. In addition, certain projects where required transaction consents have not been obtained as of the closing of the transaction (see above) will be transferred to a Con Edison subsidiary and will be sold to RWE if and when consents to the sale have been obtained. Concurrent with entering into the purchase and sale agreement, Con Edison incurred costs in the normal course of the sale process. A majority of the expected transaction costs of approximately $70 million ($49 million after-tax) were recorded in 2022. Also, as described in Note A, depreciation and amortization expense of approximately $61 million ($42 million after-tax) were not recorded on the assets of the Clean Energy Businesses in the fourth quarter of 2022 and will continue to not be recorded through the closing of the transaction. Further, since the Clean Energy Businesses were classified as held for sale as of December 31, 2022 and the transaction is expected to close on or about the end of the first quarter of 2023, Con Edison analyzed the potential impact of the anticipated sale on its state apportionment factors. Based on current estimates, Con Edison recorded an increase to its net deferred income tax liabilities and valuation allowance of $111 million and $10 million, respectively, and corresponding deferred income tax expense of approximately $121 million (net of federal income taxes) in the fourth quarter of 2022. The following table shows the pre-tax operating income for the Clean Energy Businesses for the years ended December 31, 2022, 2021 and 2020.
| Clean Energy Businesses
(Millions of Dollars) | 2022 | 2021 | 2020
Pre-tax operating income | $466 | $310 | $68
Pre-tax operating income, excluding non-controlling interest | 406 | 158 | 23
The Clean Energy Business represent a reportable segment. See Note P. At December 31, 2022, the carrying amounts of the major classes of assets and liabilities of the Clean Energy Businesses that are expected to be sold are presented on a held-for-sale basis, and accordingly exclude certain intercompany and net deferred tax liability balances, as follows:
(Millions of Dollars) | December 31, 2022
ASSETS |
CURRENT ASSETS |
Cash and temporary cash investments | $25
Accounts receivable and other receivables - net allowance for uncollectible accounts | 319
Accrued unbilled revenue | 51
Fuel oil, gas in storage, materials and supplies, at average cost | 56
Restricted cash | 223
Fair value of derivatives assets | 84
Prepayments | 35
Other current assets | 24
TOTAL CURRENT ASSETS | 817
NON-UTILITY PLANT |
Non-utility property, net accumulated depreciation | 4,197
Construction work in progress | 522
NET PLANT | 4,719
OTHER NONCURRENT ASSETS |
Goodwill | 31
Intangible assets, less accumulated amortization | 1,222
Operating lease right-of-use asset | 266
Fair value of derivatives assets | 93
Other deferred charges and noncurrent assets | 14
TOTAL OTHER NONCURRENT ASSETS | 1,626
TOTAL ASSETS | $7,162
(a) Not included in the fair value of derivative assets above is $2 million related to an intercompany amount with CECONY, which amount is eliminated in consolidation. See Note U as that amount is governed by derivative agreements, it will remain an asset of the Clean Energy Businesses following the expected close of the sale transaction.
(Millions of Dollars) | December 31, 2022
LIABILITIES |
CURRENT LIABILITIES |
Long-term debt due within one year | $353
Term loan | 150
Accounts payable | 326
Operating lease liabilities | 33
Accrued Interest | 40
Other current liabilities | 71
TOTAL CURRENT LIABILITIES | 973
NONCURRENT LIABILITIES |
Asset retirement obligations | 77
Operating lease liabilities | 248
Other deferred credits and noncurrent liabilities | 20
TOTAL NONCURRENT LIABILITIES | 345
LONG-TERM DEBT | 2,292
TOTAL LIABILITIES | $3,610

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