Consolidated Edison, Inc. (ED): Business Model Canvas [Dec-2025 Updated]

You're trying to figure out the engine behind Consolidated Edison, Inc., and frankly, it's less about flashy growth and more about expertly managing a regulated monopoly with massive infrastructure needs. Honestly, their business model is a masterclass in predictable cash flow, underpinned by essential service to nearly 3.7 million residential electric customers and a gargantuan $38 billion capital investment plan running through 2029 to power New York's clean energy shift. It's a regulated monopoly, but the transition risk is definitely real. Dive into the Canvas below to see exactly how their $16.587 billion in trailing twelve-month revenue translates into a forecasted 2025 adjusted EPS range of $5.60 to $5.70 per share, and where the biggest costs-like property taxes exceeding $3.2 billion-are hitting the bottom line.

Consolidated Edison, Inc. (ED) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that keep Consolidated Edison, Inc. running and help it meet New York's aggressive clean energy mandates. These aren't just vendor lists; these are the regulatory and governmental anchors for a $21 billion three-year grid modernization plan.

The relationship with the New York State Public Service Commission (NYSPSC) is central, as they approve the rates that fund capital investments. For instance, the Joint Proposal for O&R's electric and gas rates for January 2025 through December 2027 is subject to their final approval. Consolidated Edison Company of New York, Inc. (CECONY) filed for rate changes earlier in 2025, seeking authority to raise electric delivery revenues by approximately $1.6 billion (an 11.4% increase) and gas delivery revenues by approximately $440 million (a 13.3% increase), with hikes potentially effective in January 2026. Still, the PSC has already approved significant spending, including $636 million for electrification upgrades as part of the broader modernization effort.

Here's a quick look at the rate plan data we see for Rate Year 1 (2025) under the O&R Joint Proposal, which is subject to NYSPSC approval:

The steam rate plan, however, was established earlier, running from November 1, 2023, through October 31, 2026, with Rate Year 2 ending October 31, 2025.

Coordination with local government agencies is critical for major infrastructure alignment, especially supporting public electrification goals. Consolidated Edison, Inc.'s Reliable Clean City - Idlewild Project is a direct partnership to support the Metropolitan Transportation Authority (MTA)'s plan to transition to an all zero-emissions fleet by 2040. This project accommodates the power needs for MTA bus depot electrification. The MTA's proposed 2025-2029 Capital Plan includes purchasing an additional 500 zero-emissions buses. Furthermore, infrastructure work, such as utility relocation for the Second Avenue Subway Phase 2, requires agreements with the NYC Department of Transportation (DOT) to maintain street functionality.

For renewable energy developers, Consolidated Edison, Inc. is actively creating pathways for clean energy procurement and deployment, often through customer-facing programs. The company is a party to the Statewide Solar for All and the Renewable Energy Access and Community Help (REACH) programs, which guarantee payments to solar and storage developers. This structure reduces financing costs for these projects. The scale of customer-sited renewables is significant:

• Customer-owned solar generation capacity exceeds 679 megawatts.
• This capacity comes from 75,200 customer installations.
• In 2024 alone, customers added 100 megawatts of solar and 44 megawatts of battery storage.
• Consolidated Edison is building interconnection points to connect up to 6,000 MW of renewable wind energy within the next decade.

The utility also partners with technology vendors to advance its smart grid and resiliency efforts. For example, one project to develop a machine for joining underground electric cables remotely involves collaboration with Prysmian, Exelon, and the U.S. Department of Energy Advanced Research Projects Agency-Energy (ARPA-E), which provided $4.5 million in funding. Another project involves field testing the Underground Live End Cap Machine with ULC Technologies. These digital technology integrations, including the Distributed System Technology Platform, are key to managing diverse renewable power sources and maintaining grid stability during extreme weather.

Finally, the commitment to community is formalized through philanthropic partnerships. To date in 2025, Consolidated Edison, Inc. has awarded $15 million in grants to nonprofit partners across its service area. This funding is explicitly not provided by customer rates. The expected impact of this $15 million in 2025 grants includes:

• Training 1,800 individuals in clean energy careers.
• Helping preserve 1,900 acres of green space.
• Supporting community-led climate adaptation strategies for thousands of residents.

Finance: draft 13-week cash view by Friday.

Consolidated Edison, Inc. (ED) - Canvas Business Model: Key Activities

Operating and maintaining the electric, gas, and steam delivery systems

• CECONY delivers electricity to approximately 3.7 million customers.
• CECONY delivers gas to approximately 1.1 million customers in Manhattan, the Bronx, parts of Queens, and Westchester County.
• CECONY operates the largest steam distribution system in the U.S., delivering approximately 15,494 MMlb of steam annually to around 1,520 customers in Manhattan.
• O&R delivers electricity to approximately 0.3 million customers and gas to over 0.1 million customers.

You need to see the scale of the infrastructure they are keeping running, so here are the peak demand numbers:

Executing the $38 billion capital investment plan (2025-2029)

Consolidated Edison, Inc. reaffirmed its forecast of approximately $38 billion in capital investments from 2025-2029, targeting an 8.2% annual utility rate base growth over the same period. Separately, proposed rate plans detail over $21 billion in investment over three years starting January 1, 2026, for new infrastructure.

Purchasing power and fuel for full-service customers

The Utilities recover on a current basis the fuel, gas purchased for resale and purchased power costs they incur in supplying energy to their full-service customers, meaning these costs generally do not affect Consolidated Edison, Inc.'s results of operations.

Ensuring regulatory compliance and managing rate cases

Managing rate cases is a constant activity, especially with the January 2025 filing for new electric and gas rates to start January 1, 2026. The New York State Public Service Commission (PSC) decision capped the allowed Return on Equity (ROE) at 10.1%, which was below the requested 10.5%. Anyway, a late 2025 settlement reduced the original proposed electric rate increase of 13.4% to 2.8% on the total customer bill, and the gas increase from 19% to 2% on the total customer bill, spanning January 1, 2026, through December 31, 2028.

• O&R's rate case settlement, approved in March 2025, included a 9.75% return on equity.
• CECONY's proposed electric rate increase in Year 1 (2026) was $1,608 million, with a proposed ROE of 10.00% and an equity ratio of 48%.
• CECONY's proposed gas rate increase in Year 1 (2026) was $349 million.

Modernizing the grid to support New York's clean energy transition

The capital plan allocates funds to support electrification and grid resilience. For example, in 2024, the company supported 14,868 heat pump installations and enrolled 27,237 customers in the residential management EV charging program. The long-range investment plan earmarks 4% for clean energy and 34% for multi-value projects.

Finance: draft 13-week cash view by Friday.

Consolidated Edison, Inc. (ED) - Canvas Business Model: Key Resources

You're looking at the core assets that keep Consolidated Edison, Inc. running its massive, regulated operations in New York. These aren't just assets; they are the physical and human foundation of a near-monopoly utility.

Extensive regulated utility infrastructure is the bedrock. While the exact total figure for electric transmission circuit miles is complex to isolate from distribution, the scale of the physical plant is immense. The company operates one of the world's most complex electric power systems. For the purpose of mapping the required resource, we note the outline suggests an infrastructure scale including approximately 1,400 circuit miles of electric transmission, which is part of a system that is constantly being upgraded, such as the recent installation of new cable feeders and substation equipment across Staten Island and the Bronx.

The large, stable customer base across New York City and Westchester County provides the predictable cash flow that underpins the entire business. This customer base is segmented across the utility's primary services:

Financial capital is substantial, reflecting the asset base required to maintain and modernize this infrastructure. As of September 30, 2025, Consolidated Edison, Inc. reported total assets of $72 billion. This massive balance sheet supports ongoing capital investment plans, such as the reaffirmed projection of nearly $72 billion in capital investments over the ten years following 2025. The capital structure as of March 31, 2025, showed debt at $25,353 million (52%) and equity at $23,783 million (48%).

Exclusive franchise rights within its service territory are a critical non-physical resource. Consolidated Edison Company of New York, Inc. (CECONY) operates within a defined service area, which for electric service is approximately 604 square miles in New York City, and Orange and Rockland Utilities, Inc. (O&R) serves a 1,300-square-mile area. This regulatory protection shields the company from direct competition in core delivery services.

The highly skilled technical and engineering workforce is essential for managing system complexity and executing mandated clean energy transitions. This expertise is evident in the detailed planning processes, such as the 2025 Local Transmission Plan, which tailors forecasts to 17 Transmission Load Areas (TLAs). Furthermore, the engineering teams review custom calculations for energy efficiency and electrification programs. The company's ability to manage complex projects, like the Propel NY Energy transmission project, which is a 90-mile electric transmission project, relies on this specialized human capital.

You can see the scale of the regulated rate base supporting these resources:

• CECONY Electric Rate Base (Current Plan End Date Dec 2025): $29,362 million
• CECONY Gas Rate Base (Current Plan End Date Dec 2025): $11,063 million
• CECONY Steam Rate Base (Current Plan End Date Oct 2026): $1,848 million

Finance: draft 13-week cash view by Friday.

Consolidated Edison, Inc. (ED) - Canvas Business Model: Value Propositions

You're looking at the core promises Consolidated Edison, Inc. (ED) makes to its customers and the market, grounded in hard numbers from late 2025.

Nation-leading electric system reliability for a dense urban area

Consolidated Edison, Inc. consistently delivers service reliability that sets a high bar, especially given the complex, dense underground network in its primary service territory. This reliability is a key differentiator for customers in New York City and Westchester County.

Here are the key reliability statistics:

• CECONY's 2024 overall electric reliability was 99.997%.
• The System Average Interruption Frequency Index (SAIFI) for CECONY in 2024 was 0.11 interruptions per 1,000 customers served.
• This 2024 SAIFI performance was nearly nine times better than the New York State average (excluding CECONY) of 0.94.
• Based on 2023 performance, the typical Con Edison customer would experience an outage once every nine years.
• For the 2024 radial (overhead) system, the Customer Average Interruption Duration Index (CAIDI) was 1.88 hours, beating the target of 2.04 hours.
• The company won the PA Consulting 2024 National ReliabilityOne® Award for the most reliable electric service in the nation.

To maintain this level, Consolidated Edison, Inc. proposed approximately $903 million in reliability investments between 2025 and 2029, informed by its climate study.

Essential, non-discretionary electric, gas, and steam service

The value proposition here is the provision of non-discretionary energy services to a massive customer base, which underpins the regional economy. This is reflected in the scale of the operations and the associated financial scale.

The gas delivery system also serves a significant load, with CECONY's peak day firm gas demand forecasted to reach 1,650 MDt for the 2025/2026 winter, up from 1,263 MDt in January 2025.

Support for state clean energy goals and electrification

Consolidated Edison, Inc. is actively positioning itself as the enabler for New York State's aggressive climate mandates, requiring substantial capital deployment into grid modernization and clean energy integration.

The company has a roadmap to deliver 100-percent emissions-free energy by 2040, supporting the state goal of 70% renewable electricity by 2030.

Key investment and electrification figures include:

• Planned capital investments over the next decade: nearly $72 billion.
• Proposed investment in heat pump programs: about $2.82 billion.
• Increased electric vehicle (EV) implementation budget: nearly $450 million.
• Total planned investment for transmission to bring in clean, renewable energy (2020-2030): at least $1 billion.
• Spending on energy efficiency programs is set to triple to more than $1.5 billion by 2025.
• In 2024, customers installed nearly 14,000 heat pumps, supported by $160 million in incentives.
• Total solar capacity across 75,200 installations reached 679 megawatts by the end of 2024.

The company is building out infrastructure like the $810 million Brooklyn-based interconnection hub for offshore wind power.

Financial assistance via Energy Affordability Programs (EAP)

To ensure the energy transition is equitable, Consolidated Edison, Inc. runs programs to manage costs for lower-income customers. The Energy Affordability Program (EAP) is a major component of this commitment.

Here's the scale of the financial support:

• EAP provided $311 million in bill discounts in 2024, which was an 80 percent increase since 2022.
• For the 2024-2025 program year, projected spending was $213.7 million for electric discounts and $43.6 million for gas discounts.
• As of September 2025, 408,000 customers were enrolled in the EAP.
• The EAP discount can be up to $173 per month on energy bills for qualifying customers.
• The EAP aims to keep energy costs at or below 6 percent of average annual income for eligible customers.
• In 2024, $80 million in efficiency/electrification incentives aided low- and moderate-income households.

The company also offers reconnection fee waivers for EAP customers, with caps set at $1,662,592 for electric and $75,000 for gas services.

Transparent, regulated pricing structure

The pricing for Consolidated Edison, Inc.'s core services is set through a regulated process with the New York State Public Service Commission (PSC), providing a degree of predictability for both customers and investors. This regulation dictates how costs and incentives are managed on the balance sheet.

Financial details related to the regulated structure include:

• The estimated 2024-2025 electric discounts under EAP represented 1.74% of 2023 actual revenue from sales to end-use customers.
• The estimated 2024-2025 gas discounts represented 1.27% of 2023 actual revenue.
• The regulatory liability for deferred unbilled revenues (the difference between unbilled revenues and energy costs) was $436 million at December 31, 2024.
• Net income for common stockholders in 2024 was $1,820 million.

The structure allows for recovery or refund of certain costs through rates, as seen by the regulatory liability balance. Finance: draft 13-week cash view by Friday.

Consolidated Edison, Inc. (ED) - Canvas Business Model: Customer Relationships

Consolidated Edison, Inc. (ED) operates within a highly regulated, long-term, and non-competitive service provision structure across its primary subsidiaries, CECONY and O&R.

The relationship is defined by mandatory service provision within defined geographic territories, which ensures revenue predictability through regulatory mechanisms like revenue decoupling for electric and gas services.

The customer base served by the utility subsidiaries is substantial, covering millions of endpoints:

• The company serves more than 9 million people in New York City and Westchester County.
• CECONY delivers electricity to approximately 3.7 million customers.
• CECONY distributes gas to about 1.1 million customers.
• CECONY operates the largest steam distribution system in the U.S., serving around 1,520 customers in Manhattan.
• O&R serves approximately 0.3 million electric customers and over 0.1 million gas customers.

Consolidated Edison, Inc. (ED) offers self-service options via digital channels, which is a key focus area for efficiency and customer experience improvement.

The company continues investments in its digital channels, including websites, virtual assistant, and mobile applications, to help customers receive service promptly and effectively. These efforts are designed to avoid the need for millions of calls annually to its call center and the associated cost.

The utility maintains dedicated outreach for low-income customers through its Energy Affordability Programs (EAP).

• Approximately 466,000 CECONY and O&R customers, representing 14% of the customer base, receive public assistance.
• Customers enrolled in EAP receive bill discounts intended to reduce their energy burden to 6% of wallet.
• Over the course of 2024, the CECONY EAP provided $311 million in discounts, marking a 17% increase over 2023.
• In 2024, Con Edison provided more than $300 million in bill discounts to those enrolled in the EAP.

The relationship includes proactive communication during outages and storm events, a critical function given the complexity of the electric power system.

The company is seeking regulatory funding to expand its outreach for enrolling eligible customers in the EAP, recognizing the economic challenges faced by many customers.

Finance: draft 13-week cash view by Friday.

Consolidated Edison, Inc. (ED) - Canvas Business Model: Channels

The physical infrastructure serves as the primary, non-negotiable channel for delivering energy services across the Consolidated Edison, Inc. (ED) service territory.

The digital interface through ConEdison.com and associated mobile applications handles a significant volume of customer interactions for account management.

• ConEdison.com and mobile apps facilitate billing and service requests.
• The virtual call center system has the capability to support up to 3,000 agent positions.
• Historically, nearly eight million calls were directed to agents and voice response units each year.

Customer call centers remain a critical channel for immediate service problems and complex inquiries, operating 24 hours, 7 days a week for emergencies.

Direct mail and digital communications are used to disseminate important regulatory updates and service information.

• Digital outreach, specifically arrearage emails launched in 2024, achieved open rates exceeding 50%.
• The same email program recorded click-through rates over 36%.
• This digital channel resulted in more than 350,000 payments collected.

Consolidated Edison, Inc. (ED) - Canvas Business Model: Customer Segments

You're looking at the core customer base for Consolidated Edison, Inc. (ED), which primarily serves through its Consolidated Edison Company of New York, Inc. (CECONY) subsidiary, the utility powerhouse in the New York City area.

The customer segments are quite distinct based on the energy service provided, reflecting the dense, varied infrastructure in the service territory. For instance, the steam service is highly concentrated in Manhattan, serving specialized, large real estate users.

Here's a quick look at the scale of the primary utility customer counts served by CECONY as of late 2024/early 2025:

The Commercial and industrial businesses segment is a critical component of the gas and electric load, though a distinct customer count separate from the total gas customers isn't always broken out in the same way as residential figures. We do see load data that helps define this group; for example, on a peak day, the commercial/industrial load for gas throughput was 414 Mdt (Thousand Dekatherms) for CECONY, compared to 843 Mdt for residential customers.

Consolidated Edison, Inc. (ED) also focuses significant resources on its low-income and vulnerable customers, recognizing the high energy burden in its service area. This focus is a material part of its regulated operations and social responsibility efforts.

• Approximately 466,000 CECONY and O&R customers, representing 14% of the total customer base, receive public assistance.
• The Energy Affordability Program delivered $311 million in discounts during 2024, an 80 percent increase since 2022.
• The EnergyShare program granted over $500,000 to more than 2,700 families in 2024.
• Incentives for energy efficiency and building electrification upgrades totaled $321 million in 2024, with $80 million specifically aiding low- and moderate-income households.

For the steam segment, these customers occupy roughly 500 million square feet of Manhattan real estate, and many are historic landmark high-rise buildings. The utility is actively studying the complexities for these customers transitioning away from steam to meet New York City's decarbonization goals.

Finance: draft 13-week cash view by Friday.

Consolidated Edison, Inc. (ED) - Canvas Business Model: Cost Structure

You're looking at the core expenses that keep Consolidated Edison, Inc. running its massive infrastructure in New York City and Westchester County. These costs are largely fixed or regulated, which gives you a certain predictability, but they are substantial.

High capital expenditures for infrastructure represent a massive, ongoing cash drain, necessary to maintain and modernize the grid for reliability and clean energy goals. Consolidated Edison, Inc. reaffirmed a $38 billion capital investment plan forecasted from 2025 through 2029. For the full year 2025, the company anticipated capital expenditures of $5.12 billion. The stated Q1 2025 utility CapEx was $1,155 million. [cite: prompt]

The utility's cost structure is heavily influenced by commodity prices, though Consolidated Edison, Inc. generally shields its income statement from fluctuations here. For full-service customers, the company buys electricity and natural gas on the wholesale market and passes those costs directly onto consumers through supply charges without taking a profit or a loss on the commodities themselves. The O&R joint proposal continues the current rate recovery method for purchased gas costs.

Significant operating and maintenance expenses (O&M) are a major component of delivery charges. Consolidated Edison Inc operating expenses for the twelve months ending September 30, 2025, totaled $13.662B. For the first quarter of 2025, there was a reported lower electric, gas, and steam operations and maintenance expense. However, the second quarter of 2025 saw higher O&M expense driven by healthcare costs and injuries and damages.

Taxes are a direct cost passed to ratepayers. Consolidated Edison estimates it will collect more than $3.2 billion in property taxes from its customers in 2026. This cost is embedded in delivery charges, which are ultimately borne by the service users.

Servicing the necessary balance sheet leverage results in considerable interest expense on substantial debt. Consolidated Edison reported $274M in Interest Expense on Debt for its fiscal quarter ending in June of 2025. As of September 30, 2025, the carrying value of debt for the primary subsidiary, CECONY, stood at $25,353 million. This debt level requires consistent servicing costs.

Here's a look at some key financial metrics impacting the cost base:

• Twelve Months Operating Expenses (ending Sept 30, 2025): $13.662B.
• Estimated Property Taxes Collected (2026): Over $3.2 billion.
• Interest Expense on Debt (Q2 2025): $274M.
• Forecasted Total CapEx (2025-2029): $38 billion.
• CECONY Debt (as of Sept 30, 2025): $25,353 million.

You can see the scale of the required investment versus the recurring operational costs in this comparison:

The utility's rate case filings explicitly request recovery for these costs. For instance, the 2026 rate year filing sought approximately $1.6 billion more in electric revenue and about $440 million more in gas revenue to fund investments, which includes recovery for property taxes and debt costs.

Consolidated Edison, Inc. (ED) - Canvas Business Model: Revenue Streams

You're looking at the core of how Consolidated Edison, Inc. makes its money, which is heavily anchored in its regulated utility structure in New York. This isn't a business chasing fads; it's about delivering essential services under regulatory oversight, which brings a specific kind of financial stability.

The primary engine for Consolidated Edison, Inc.'s revenue comes from regulated utility delivery charges for electricity, gas, and steam across its service territories. This forms the base of the revenue stack, as the company acts as the essential infrastructure provider.

A key feature supporting the revenue profile is the revenue predictability due to rate-decoupling mechanisms. Under the revenue decoupling mechanisms in the Utilities' New York electric and gas rate plans, revenues are generally insulated from day-to-day fluctuations in delivery volumes, as they are tied to the levels assumed when rates were approved. Also, the Utilities' gas and CECONY's steam sales are subject to a weather normalization clause, which means delivery revenues reflect normal weather conditions during the heating season. This regulatory structure helps smooth out earnings volatility.

Here's a quick look at the top-line financial performance as of late 2025:

Beyond the core delivery charges, other components factor into the overall recognized income. You'll see references to Allowance for Funds Used During Construction (AFUDC) income when looking at the detailed earnings adjustments, particularly for the Con Edison Transmission segment. This income reflects the interest costs capitalized during the construction phase of major infrastructure projects, which is then recognized as income over time.

The revenue recognition also involves specific regulatory adjustments:

• Revenue decoupling for CECONY and O&R New York electric and gas rates.
• Weather normalization clause for CECONY gas and steam, and O&R New York gas.
• Formulaic approach to return on equity using a 2/3 Discounted Cash Flow Model and 1/3 Capital Asset Pricing Model.
• Recovery of fuel, gas purchased for resale, and purchased power costs on a current basis for full-service customers.

These mechanisms are designed to ensure the recovery of operating costs and a set return on invested capital, which is what makes the revenue stream so dependable, even if delivery volumes shift due to weather or economic activity. Finance: draft 13-week cash view by Friday.