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Income Tax | 9 Months Ended
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Sep. 30, 2025
Income Tax Disclosure [Abstract] |
Income Tax | Income Tax Con Edison’s income tax expense was $202 million and $133 million for the three months ended September 30, 2025 and 2024, respectively. CECONY’s income tax expense was $187 million and $119 million for the three months ended September 30, 2025 and 2024, respectively. Reconciliation of the difference between income tax expense and the amount computed by applying the prevailing statutory income tax rate to income before income taxes for the three months ended September 30, 2025 and 2024 is as follows:
| For the Three Months Ended September 30,
| Con Edison | CECONY
| 2025 | 2024 | 2025 | 2024
(Millions of Dollars) (% of Pre-tax income) | $ | % | $ | % | $ | % | $ | %
STATUTORY TAX RATE |  |  |  |  |  |  |  |
Federal | $187 | 21.0 | % | $152 | 21.0 | % | $173 | 21.0 | % | $138 | 21.0 | %
Changes in computed taxes resulting from: |  |  |  |  |  |  |  |
State income taxes, net of federal income taxes (a) | 47 | 5.3 |  | 39 | 5.5 |  | 43 | 5.2 |  | 34 | 5.2 |
MTA Surcredit amortization, net of federal taxes | (5) | (0.6) |  | — | — |  | (5) | (0.6) |  | 1 | 0.2 |
Tax Credits | (4) | (0.5) |  | (7) | (1.0) |  | (3) | (0.4) |  | (4) | (0.6) |
Changes in unrecognized tax benefits | 1 | 0.1 |  | 1 | 0.1 |  | 1 | 0.1 |  | 1 | 0.1 |
Amortization of excess deferred federal income taxes (b) | (11) | (1.3) |  | (50) | (6.9) |  | (9) | (1.1) |  | (48) | (7.4) |
Allowance for uncollectible accounts, net of regulatory recovery | (15) | (1.6) |  | (10) | (1.4) |  | (15) | (1.8) |  | (9) | (1.4) |
Cost of removal | 10 | 1.1 |  | 10 | 1.4 |  | 9 | 1.1 |  | 9 | 1.4 |
Other | (8) | (0.8) |  | (2) | (0.2) |  | (7) | (0.8) |  | (3) | (0.3) |
Effective tax rate | $202 | 22.7 | % | $133 | 18.5 | % | $187 | 22.7 | % | $119 | 18.2 | %
(a) State income taxes in New York account for the majority of the tax eﬀect in this category. (b) For CECONY, the amortization of excess deferred federal income taxes is lower in the three months ended September 30, 2025, due to the completion of regulatory amortization of non-plant and certain plant-related excess deferred federal income taxes as of December 31, 2024, representing an accelerated refund of the related regulatory liability under its current New York electric and gas rate plans. Con Edison’s income tax expense was $493 million and $307 million for the nine months ended September 30, 2025 and 2024, respectively. CECONY’s income tax expense was $462 million and $301 million for the nine months ended September 30, 2025 and 2024, respectively. Reconciliation of the difference between income tax expense and the amount computed by applying the prevailing statutory income tax rate to income before income taxes for the nine months ended September 30, 2025 and 2024 is as follows:
| For the Nine Months Ended September 30,
| Con Edison | CECONY
| 2025 | 2024 | 2025 | 2024
(Millions of Dollars) (% of Pre-tax income) | $ | % | $ | % | $ | % | $ | %
STATUTORY TAX RATE |  |  |  |  |  |  |  |
Federal | $466 | 21.0 | % | $382 | 21.0 | % | $434 | 21.0 | % | $361 | 21.0 | %
Changes in computed taxes resulting from: |  |  |  |  |  |  |  |
State income taxes, net of federal income taxes (a) | 116 | 5.2 |  | 91 | 5.0 |  | 108.0 | 5.2 |  | 89.0 | 5.2 |
MTA Surcredit amortization, net of federal taxes | (26) | (1.2) |  | (2) | (0.1) |  | (25.0) | (1.2) |  | (1.0) | (0.1) |
Tax Credits | (13) | (0.6) |  | (20) | (1.1) |  | (10.0) | (0.5) |  | (10.0) | (0.6) |
Changes in unrecognized tax benefits | 2 | 0.1 |  | 2 | 0.1 |  | 2.0 | 0.2 |  | 2.0 | 0.1 |
Amortization of excess deferred federal income taxes (b) | (34) | (1.5) |  | (152) | (8.3) |  | (28.0) | (1.3) |  | (147.0) | (8.5) |
Allowance for uncollectible accounts, net of regulatory recovery | (36) | (1.6) |  | (14) | (0.8) |  | (36.0) | (1.8) |  | (13.0) | (0.8) |
Cost of removal | 29 | 1.3 |  | 30 | 1.7 |  | 26.0 | 1.3 |  | 27.0 | 1.6 |
Other | (11) | (0.5) |  | (10) | (0.6) |  | (9) | (0.5) |  | (7) | (0.4) |
Effective tax rate | $493 | 22.2 | % | $307 | 16.9 | % | $462 | 22.4 | % | $301 | 17.5 | %
(a) State income taxes in New York account for the majority of the tax eﬀect in this category. (b) For CECONY, the amortization of excess deferred federal income taxes is lower in the nine months ended September 30, 2025, due to the completion of regulatory amortization of non-plant and certain plant-related excess deferred federal income taxes as of December 31, 2024, representing an accelerated refund of the related regulatory liability under its current New York electric and gas rate plans. One Big Beautiful Bill Act On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was signed into law, containing a broad range of tax reform provisions, including extending and modifying certain key provisions of the federal Tax Cuts and Jobs Act of 2017, as enacted on December 22, 2017 and expanding certain incentives under the federal Inflation Reduction Act, as enacted on August 16, 2022 (IRA) while accelerating the phase-out of solar and wind credits. The Companies are assessing the potential impacts of the OBBBA and any such assessments may be impacted by future guidance to be issued by the Department of Treasury. However, based on management’s assessment, the provisions in the OBBBA are not expected to have a material impact on the Companies’ financial position, results of operations or liquidity. Corporate Alternative Minimum Tax On August 16, 2022, the IRA was signed into law and implemented a new corporate alternative minimum tax (CAMT) that imposes a 15 percent tax on modified GAAP net income. Pursuant to the IRA, corporations are entitled to a tax credit (minimum tax credit) to the extent the CAMT liability exceeds the regular tax liability. This amount can be carried forward indefinitely and used in future years when regular tax liability exceeds the CAMT liability. Beginning in 2024, based on the existing statute, the Companies are subject to and report the CAMT in their Consolidated Income Statements, Consolidated Statements of Cash Flows and the Consolidated Balance Sheets. As of September 30, 2025 and 2024, Con Edison accrued a CAMT liability of $66 million ($89 million for CECONY) and $73 million ($64 million for CECONY), respectively, before the application of general business credits, with an offsetting deferred tax asset representing the minimum tax credit carryforward. The deferred tax asset related to the minimum tax credit carryforward will be realized to the extent the Companies’ consolidated deferred tax liabilities exceed the minimum tax credit carryforward. The Companies’ deferred tax liabilities are expected to exceed the minimum tax credit carryforward for the foreseeable future and thus no valuation allowance is required. The Companies are continuing to assess the impacts of the IRA on their financial statements and will update estimates based on future guidance to be issued by the Department of the Treasury. Uncertain Tax Positions Under the accounting rules for income taxes, the Companies are not permitted to recognize the tax benefit attributable to a tax position unless such position is more likely than not to be sustained upon examination by taxing authorities, including resolution of any related appeals and litigation processes, based solely on the technical merits of the position. At September 30, 2025, the estimated uncertain tax positions for Con Edison was $12 million ($8 million of which is for CECONY). For the nine months ended September 30, 2025, Con Edison recognized $3 million of income tax expense related to current year positions ($2 million of which is for CECONY). The total amount of unrecognized tax benefits, if recognized, that would reduce Con Edison’s effective tax rate is $12 million ($11 million, net of federal taxes) with $8 million attributable to CECONY. The Companies recognize interest on liabilities for uncertain tax positions in interest expense and would recognize penalties, if any, in operating expenses in the Companies’ consolidated income statements. For the nine months ended September 30, 2025 and 2024, the Companies recognized an immaterial amount of interest expense and no penalties for uncertain tax positions in their consolidated income statements. At September 30, 2025 and December 31, 2024, the Companies recognized an immaterial amount of accrued interest on their consolidated balance sheets.

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