ED » Topics » Steam

This excerpt taken from the ED 10-K filed Feb 22, 2010.

Steam

CECONY operates the largest steam distribution system in the United States by producing and delivering more than 23,000 MMlbs of steam annually to approximately 1,760 customers in parts of Manhattan.

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These excerpts taken from the ED 10-K filed Feb 23, 2009.

Steam

Con Edison of New York’s steam sales and deliveries in 2008 compared with 2007 were:

 

    Millions of Pounds Delivered     Revenues in Millions  
    Twelve Months Ended               Twelve Months Ended            
Description   December 31,
2008
  December 31,
2007
  Variation     Percent
Variation
    December 31,
2008
  December 31,
2007
  Variation     Percent
Variation
 

General

  785   589   196     33.3 %   $ 23   $ 23   $ -     - %

Apartment house

  6,614   7,519   (905 )   (12.0 )     186     188     (2 )   (1.1 )

Annual power

  16,577   17,696   (1,119 )   (6.3 )     468     443     25     5.6  

Other operating revenues

  -   -   -     -       30     32     (2 )   (6.3 )

Total

  23,976   25,804   (1,828 )   (7.1 )%   $ 707   $ 686   $ 21     3.1 %

Con Edison of New York’s steam operating revenues increased $21 million in 2008 compared with 2007 due primarily to the net change in rates under the steam rate plan ($25 million). Other steam operating revenues generally reflect changes in regulatory assets and liabilities in accordance with the company’s rate plans. See Note B to the financial statements.

Steam sales and delivery volumes decreased 7.1 percent in 2008 compared with 2007, reflecting primarily the impact of weather. After adjusting for variations, principally weather and billing days, steam sales and deliveries decreased 3.0 percent in 2008, reflecting primarily lower customer usage.

Con Edison of New York’s steam fuel costs increased $20 million in 2008 compared with 2007 due primarily to higher unit costs ($43 million), offset by lower sendout volumes ($23 million). Steam purchased power costs increased $8 million in 2008 compared with 2007 due primarily to higher unit costs ($17 million), offset by a decrease in purchased volumes ($9 million).

Steam operating income decreased $7 million in 2008 compared with 2007. The decrease reflects primarily higher operations and maintenance expense ($15 million, due primarily to higher distribution expense ($12 million)), taxes other than income taxes ($2 million, principally property taxes) and lower net revenues ($7 million), offset by lower income taxes ($17 million).

Steam

Con Edison of New York’s steam sales and deliveries in 2007 compared with 2006 were:

 

    Millions of Pounds Delivered     Revenues in Millions  
    Twelve Months Ended             Twelve Months Ended          
Description   December 31,
2007
  December 31,
2006
  Variation   Percent
Variation
    December 31,
2007
  December 31,
2006
  Variation   Percent
Variation
 

General

  589   515   74   14.4 %   $ 23   $ 21   $ 2   9.5 %

Apartment house

  7,519   6,774   745   11.0       188     174     14   8.0  

Annual power

  17,696   15,961   1,735   10.9       443     405     38   9.4  

Other operating revenues

  —     —     —     —         32     23     9   39.1  

Total

  25,804   23,250   2,554   11.0 %   $ 686   $ 623   $ 63   10.1 %

 

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MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

(COMBINED FOR CON EDISON AND CON EDISON OF NEW YORK) – CONTINUED

 

Con Edison of New York’s steam operating revenues increased $63 million in 2007 compared with 2006 due primarily to net purchased power, fuel costs and timing of fuel recoveries ($40 million), the colder winter weather in 2007 ($32 million) and the net change in rates under the steam rate plan ($7 million). Other steam operating revenues generally reflect changes in regulatory assets and liabilities in accordance with the company’s rate plans. See Note B to the financial statements.

Steam sales and delivery volumes increased 11.0 percent in 2007 compared with 2006, reflecting primarily the impact of weather. After adjusting for variations, principally weather and billing days, steam sales and deliveries increased 0.2 percent in 2007.

Con Edison of New York’s steam fuel costs increased $53 million in 2007 compared with 2006 due primarily to higher sendout volumes ($32 million) and higher unit costs ($21 million). Steam purchased power costs decreased $13 million in 2007 compared with 2006 due primarily to lower unit costs ($11 million) and purchased volumes ($2 million).

Steam operating income increased $4 million in 2007 compared with 2006. The increase reflects primarily higher net revenues ($23 million) and lower income taxes ($11 million), offset in part by higher operations and maintenance expense ($12 million), depreciation ($10 million) and taxes other than income taxes ($9 million, principally property taxes).

 

This excerpt taken from the ED 10-K filed Feb 22, 2008.

Steam

Con Edison of New York’s steam sales and deliveries in 2006 compared with 2005 were:

 

    Millions of Pounds Delivered     Revenues in Millions  
    Twelve Months Ended               Twelve Months Ended            
Description   December 31,
2006
  December 31,
2005
  Variation     Percent
Variation
    December 31,
2006
  December 31,
2005
  Variation     Percent
Variation
 

General

  515   655   (140 )   (21.4 )%   $ 21   $ 22   $ (1 )   (4.5 )%

Apartment house

  6,774   7,748   (974 )   (12.6 )     174     173     1     0.6  

Annual power

  15,961   18,474   (2,513 )   (13.6 )     405     417     (12 )   (2.9 )

Other operating revenues

  -   -   -     -       23     37     (14 )   (37.8 )

Total

  23,250   26,877   (3,627 )   (13.5 )%   $ 623   $ 649   $ (26 )   (4.0 )%

 

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MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

(COMBINED FOR CON EDISON AND CON EDISON OF NEW YORK) — CONTINUED

 

Con Edison of New York’s steam operating revenues decreased $26 million in 2006 compared with 2005 due primarily to the milder weather in 2006 ($38 million) net purchased power, fuel costs and timing of fuel recoveries ($23 million), offset in part by the net increase in rates under the steam rate plan ($30 million). Other steam operating revenues generally reflect changes in regulatory assets and liabilities in accordance with the company’s rate plans. See Note B to the financial statements.

Steam sales and delivery volumes decreased 13.5 percent in 2006 compared with 2005, reflecting primarily the impact of weather. After adjusting for variations, principally weather and billing days, steam sales and deliveries decreased 0.6 percent in 2006.

Con Edison of New York’s steam purchased power costs increased $16 million in 2006 compared with 2005 due primarily to increased purchased volumes. Steam fuel costs decreased $53 million due primarily to lower sendout volumes ($41 million) and lower unit costs ($12 million).

Steam operating income decreased $1 million in 2006 compared with 2005 reflecting higher depreciation expense ($11 million), income taxes ($10 million), operations and maintenance costs ($5 million) and taxes other than income taxes ($3 million, principally property taxes), offset in part by higher net revenues ($10 million) and recovery of costs related to the East River Repowering Project ($19 million).

 

This excerpt taken from the ED 10-K filed Feb 21, 2007.

Steam

Con Edison of New York’s steam sales and deliveries in 2005 compared with 2004 were:

 

    Millions of Pounds Delivered     Revenues in Millions  
    Twelve Months Ended               Twelve Months Ended          
Description  

December 31,

2005

 

December 31,

2004

  Variation     Percent
Variation
   

December 31,

2005

 

December 31,

2004

  Variation   Percent
Variation
 

General

  655   685   (30 )   (4.4 )%   $ 22   $ 19   $ 3   15.8 %

Apartment house

  7,748   7,602   146     1.9       173     151     22   14.6  

Annual power

  18,474   17,842   632     3.5       417     361     56   15.5  

Other operating revenues

  -   -   -     -       37     19     18   94.7  

Total

  26,877   26,129   748     2.9 %   $ 649   $ 550   $ 99   18.0 %

 

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MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

(COMBINED FOR CON EDISON AND CON EDISON OF NEW YORK) – CONTINUED

 

Con Edison of New York’s steam operating revenues increased $99 million in 2005 compared with 2004, due primarily to the net increase in rates under the steam rate plan ($50 million), recovery from customers of costs associated with the East River Repowering Project ($28 million), the effect of the 2004 charge to resolve certain issues relating primarily to the treatment of prior period pension credits ($6 million), higher fuel and purchased power costs ($10 million) and a charge related to distribution losses in 2004 ($4 million).

Steam sales and delivery volumes increased 2.9 percent in 2005 compared with the 2004 period, reflecting primarily the impact of weather. After adjusting for variations, principally weather and billing days in each period, steam sales and deliveries increased 1.8 percent in 2005.

Con Edison of New York’s steam purchased power costs increased $8 million in 2005 compared with 2004 due primarily to higher unit costs, offset in part by lower purchased volumes. Steam fuel costs increased $2 million due primarily to higher sendout volumes, offset in part by savings resulting from the operation of the East River Repowering Project.

Steam operating income increased $66 million in 2005 compared with 2004. The increase is due to higher net revenues resulting from the steam rate plan ($60 million) and the recovery of costs related to the East River Repowering Project ($82 million), offset in part by higher income tax ($38 million), operations and maintenance expenses ($12 million), depreciation expense ($19 million) and taxes other than income taxes ($6 million, principally property taxes).

 

This excerpt taken from the ED 10-K filed Feb 22, 2006.

Steam

In November 2000, the PSC authorized implementation of an agreement between Con Edison of New York, the PSC staff and certain other parties, that provided for a $17 million steam rate increase in October 2000 and, with limited exceptions, no further changes in steam rates prior to October 2004. The agreement continued the rate provisions pursuant to which Con Edison of New York recovered purchased steam and fuel costs on a current basis.

 

In September 2004, the PSC approved a steam rate plan covering the two-year period October 2004 through September 2006. The plan provides for increases in steam base rates of $49.6 million, effective October 1, 2004, and $27.4 million, effective October 1, 2005. The increases are net of a $6.2 million pre-tax charge to steam operating revenues, which the company recognized in 2004 to resolve certain issues raised in the proceeding, relating primarily to the treatment of prior period pension credits. The rate increases also include the amortization of certain regulatory assets and liabilities. The net effect of this amortization will be to decrease steam revenues by $3 million over the period of the two-year rate plan.

 

Additional provisions of the steam rate plan include: equal sharing with customers of earnings in excess of an 11.75 percent return on common equity (based upon the actual average common equity ratio, subject to a maximum common equity ratio of 50 percent of capitalization); reconciliation of pension and other post-employment benefit costs allocable to the steam business to the amounts for such costs reflected in rates, with the difference deferred as a regulatory asset or liability, as the case may be, for future recovery from or refund to customers; continuation of provisions for the recovery from customers on a current basis of the cost of fuel and purchased steam and for the recovery of environmental remediation expenses; and continuation of the deferral as a regulatory asset or liability, subject to certain limitations, of differences between actual costs and amounts reflected in rates for property taxes and interference costs.

 

In April 2005, Con Edison of New York commenced commercial operation of the East River Repowering Project (ERRP) and retired its Waterside generating station. Under the steam rate plan, the company credited customers with the estimated net monthly fuel savings from the ERRP until the plant was in service. The company will recover all benefits credited to customers during the period January 2005 through March 2005 over the subsequent 18 months.

 

In November 2005, Con Edison of New York filed a request with the PSC for a net increase in the rates it charges for steam service, effective October 1, 2006, of $68 million (9.6 percent).

 

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Notes to the Financial Statements – Continued

 

The filing reflects a return on common equity of 11 percent and a common equity ratio of 49 percent. The filing includes a proposal for a three-year rate plan, with additional increases effective October 1, 2007 and 2008 of $15 million and $12 million, respectively. The filing proposes continuation of the current steam rate plan provisions with respect to recovery from customers of the cost of fuel and purchased steam, environmental remediation expenses and the reconciliation of actual expenses allocable to steam to the amounts reflected in rates for pension and other post-employment benefit costs, property taxes and interference costs.

 

In December 2005, the PSC issued an order regarding a steam business development plan developed by a task force on which Con Edison of New York, governmental, consumer, environmental and steam producer representatives participated. The PSC characterized negatively the company’s steam business development efforts and ordered the company to implement certain of the plan’s recommendations, including developing account management and geographic information systems, and preparing steam resource and targeted marketing plans, strengthening relationships with customers’ advisors and vendors of steam equipment and promoting hybrid chiller systems (which would use steam for cooling purposes during periods of high electric demand). Certain of the recommendations were reflected in the company’s pending steam rate request and others may also be considered in connection with the request.

 

 

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Notes to the Financial Statements – Continued

 

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