Con Edison earnings drop—can clean energy investments turn it around?

Consolidated Edison, Inc. (Con Edison) (NYSE: ED) has reported a decline in its 2024 net income, reflecting the absence of one-time gains from the sale of its clean energy business in 2023. Despite this, the company demonstrated strong utility business growth, underpinned by strategic grid infrastructure expansion, electrification investments, and its commitment to clean energy transition.

For the full year of 2024, Con Edison recorded net income of $1.82 billion, equivalent to $5.26 per share, significantly lower than $2.52 billion or $7.25 per share in 2023. Adjusted earnings, which exclude the impacts of the clean energy business sale, improved to $1.87 billion or $5.40 per share, compared to $1.76 billion or $5.07 per share in the prior year.

Fourth-quarter earnings also saw a decline, with net income for common stock at $310 million ($0.90 per share), down from $335 million ($0.97 per share) in the fourth quarter of 2023. Adjusted earnings for the quarter stood at $340 million ($0.98 per share), slightly lower than $346 million ($1.00 per share) in the same period of the previous year.

Tim Cawley, Chairman and CEO of Con Edison, stated that the company’s 2024 financial performance was driven by the effective implementation of its utility rate plans. He highlighted ongoing efforts to support the electrification of buildings and transportation, meet the growing demand for renewable energy solutions, and strengthen grid infrastructure resilience.

What Are Con Edison’s Growth Plans for 2025 and Beyond?

Looking ahead, Con Edison expects adjusted earnings per share for 2025 to range between $5.50 and $5.70, signaling continued confidence in its utility business growth and strategic clean energy investments. The company forecasts a 6% to 7% compound annual growth rate in adjusted earnings per share over the next five years.

To support this growth, Con Edison is planning record capital investments, with $5.12 billion earmarked for 2025 and $8.07 billion for 2026. Between 2027 and 2029, the company aims to invest $24.47 billion in grid modernization, clean energy projects, and infrastructure upgrades.

The utility company has outlined its capital requirements for the next five years, indicating plans to finance these investments through internally generated funds, long-term debt issuance, and common equity offerings. Con Edison expects to raise up to $1.75 billion in long-term debt in 2025 and $3.8 billion in 2026, with a cumulative issuance of $9.1 billion in long-term debt between 2027 and 2029.

Additionally, Con Edison has announced plans to issue $1.35 billion in common equity in 2025, which includes $677 million from its December 2024 equity forward transaction, along with shares issued through its dividend reinvestment, employee stock purchase, and incentive programs. The company anticipates issuing $1.85 billion in common equity in 2026 and up to $4.3 billion in aggregate from 2027 to 2029.

How Will Con Edison’s Investment Plan Impact Customers?

To ensure the reliability and sustainability of its energy services, Con Edison has submitted a rate proposal to the New York State Public Service Commission (NYPSC). This plan, covering investments through 2026, includes a $21 billion investment in energy infrastructure to modernize the grid, expand clean energy programs, and improve customer affordability initiatives.

Con Edison’s proposed rate adjustments, if approved, would result in an average electric bill increase of 11.4% and a gas bill increase of 13.3% starting in 2026. These rate increases are intended to support essential grid investments while addressing the rising property taxes on energy infrastructure, which are estimated to represent 27% of the proposed electric revenue increase and 14.5% of the gas revenue increase.

To mitigate the impact on low-income customers, the company plans to expand its Energy Affordability Program (EAP), which provided over $300 million in bill discounts in 2024. Con Edison is also working with policymakers to explore ways to redirect collected tax revenue toward clean energy incentives and bill relief programs for disadvantaged communities.

What Key Projects Are Included in Con Edison’s Clean Energy Strategy?

Con Edison is aggressively pursuing clean energy initiatives to meet New York State’s climate goals and support customers transitioning to electrification technologies. The company is investing in a new substation complex in Queens to accommodate increased power demand from the redevelopment of JFK Airport, MTA bus depots, and customer electrification in the Jamaica network.

A Brooklyn clean energy hub is also in development, designed to facilitate the integration of renewable energy sources while ensuring reliability for local neighborhoods. Con Edison is implementing a Distributed System Technology Platform, which will optimize renewable energy distribution, enhance grid stability, and support demand response programs.

An electrification pilot program for affordable multi-unit buildings is being introduced to provide bill credits to tenants not covered by rent control and offer financial assistance to low-income residents transitioning to electric heating. Additionally, the company is expanding service installation programs to ensure the grid is ready to accommodate electric vehicle charging infrastructure, building electrification projects, and new commercial developments.

How Is Con Edison Strengthening Grid Resilience?

As extreme weather events become more frequent, Con Edison is implementing climate resilience measures to protect its energy infrastructure. The company has been working to fortify the grid against heatwaves, storms, and flooding, building on improvements made since Superstorm Sandy.

Con Edison has stated that its grid hardening efforts have already prevented over 1.2 million power outages. The company’s ongoing initiatives to enhance grid reliability include replacing overhead power lines with more resilient aerial cables, upgrading underground cables to withstand higher temperatures caused by climate change, and strengthening critical infrastructure that serves hospitals, emergency response centers, and public transit systems.

Cybersecurity protections are also being expanded to safeguard against potential cyber threats targeting critical energy systems. Investments in IT security infrastructure are being prioritized to prevent disruptions and protect customer data.

What Challenges Does Con Edison Face?

Despite its aggressive clean energy transition and infrastructure investments, Con Edison continues to navigate several industry challenges. Rising interest expenses, regulatory hurdles, and customer affordability concerns remain critical factors in shaping the company’s financial outlook.

While Con Edison’s investment in electrification and grid modernization aligns with New York’s clean energy policies, the company must balance the cost of these initiatives with ratepayer affordability concerns. Additionally, regulatory approval processes could impact the timeline and execution of major infrastructure projects.

CEO Tim Cawley remains optimistic, emphasizing the company’s long-term strategy to power New York’s clean energy transition while maintaining financial stability. He reaffirmed Con Edison’s commitment to delivering reliable, affordable, and sustainable energy for its 9 million customers across New York City and Westchester County.

Con Edison’s 2024 earnings decline highlights the financial impact of one-time gains in 2023, yet the company remains on a strong growth trajectory. With record investments in electrification, grid modernization, and clean energy infrastructure, Con Edison is positioned to lead the energy transition in New York while addressing customer affordability concerns and climate resilience challenges.