Right now, the competitive businesses are hurting earnings. Since they make up such a small amount of ConEd’s total income, their effect is negligible. Still, they are a drain on overall earnings.
Right now, the competitive businesses are hurting earnings. Since they make up such a small amount of ConEd’s total income, their effect is negligible. Still, they are a drain on overall earnings.
Because ConEd does not have significant generation capacity of its own, it has to purchase energy on the open market. A price shock in the energy market could create a crisis for ConEd where it is unable to re-sell the energy for a profit.
ConEd’s businesses are completely subject to regulatory decisions. Its utilities traditionally enjoy productive relationships with their regulators, but the utilities commissions have more recently begun to reconsider their generous base rates. In addition, the commissions are subject to political pressure, so repercussions from last year’s Queen’s blackouts could have an effect on their upcoming rulings.