CONSOLIDATED EDISON, INC.

Red flags

• Capital requirements are substantial: Utilities plan $36.6 billion of 2026–2030 investment, while Con Edison also expects up to $15.9 billion of long-term debt issuance over 2026–2030 and up to $1.1 billion of common equity issuance in 2026.
• CECONY’s debt-to-total-capital ratio was 0.55 at December 31, 2025, leaving only 10 percentage points before the 0.65 covenant threshold; additional borrowing could reduce financial flexibility.
• The Manhattan explosion litigation remains unresolved. CECONY has accrued a $40 million liability matched by a $40 million insurance receivable, but lawsuits seek unspecified and potentially punitive damages.
• Pension sensitivity remains material: a 0.25-point decline in the discount rate would increase projected 2026 benefit obligations by $395 million for Con Edison, while a 0.25-point decline in expected asset returns would increase annual cost by $44 million.