Consolidated Edison, Inc. reported 2020 net income for common stock of $1,101 million or $3.29 a share compared with $1,343 million or $4.09 a share in 2019. Adjusted earnings were $1,399 million or $4.18 a share in 2020 compared with $1,438 million or $4.38 a share in 2019. Adjusted earnings and adjusted earnings per share in 2020 exclude the impact of the impairment loss related to Con Edison’s investment in Mountain Valley Pipeline, LLC. Adjusted earnings and adjusted earnings per share in 2020 and 2019 exclude the effects of hypothetical liquidation at book value (HLBV) accounting for tax equity investments in certain renewable electric production projects of Con Edison Clean Energy Businesses, Inc. (the Clean Energy Businesses) and the net mark-to-market effects of the Clean Energy Businesses.
For the fourth quarter of 2020, net income for common stock was $43 million or $0.13 a share compared with $295 million or $0.89 a share in 2019. Adjusted earnings were $253 million or $0.75 a share in the 2020 period compared with $288 million or $0.87 a share in the 2019 period. Adjusted earnings and adjusted earnings per share in the 2020 period exclude the impact of the impairment loss related to Con Edison’s investment in Mountain Valley Pipeline, LLC. Adjusted earnings and adjusted earnings per share in the 2020 and 2019 periods exclude the effects of HLBV accounting for tax equity investments in certain renewable electric production projects of the Clean Energy Businesses and the net mark-to-market effects of the Clean Energy Businesses.
“I want to thank our essential frontline employees for their dedication and sacrifice throughout the pandemic. Their exceptional work in providing safe and reliable energy to New Yorkers has made a critical difference throughout this most difficult year,” said Timothy P. Cawley, Con Edison’s president and chief executive officer. “Our commitment to delivering shareholder value and leading the transition to a clean energy future remains strong.”
For the year of 2021, Con Edison expects its adjusted earnings per share to be in the range of $4.15 to $4.35 a share. Adjusted earnings per share exclude the effects of HLBV accounting for tax equity investments in certain of the Clean Energy Businesses’ renewable electric production projects (approximately $0.16 a share). Adjusted earnings per share also exclude the Clean Energy Businesses’ net mark-to-market effects, the amount of which will not be determinable until year end. The forecast reflects operations and maintenance expenses of $3,292 million. The company is also forecasting a five-year compounded annual adjusted earnings per share growth rate of 4% to 6% based off 2021 adjusted earnings per share guidance.
In 2021, Con Edison expects to make capital investments of $4,018 million. For 2022 and 2023, Con Edison expects to make capital investments of $8,114 million in aggregate. Con Edison plans to meet its capital requirements for 2021 through 2023, through internally-generated funds and the issuance of long-term debt and common equity. The company’s plans include the issuance of between $1,900 million and $2,600 million of long-term debt, including for maturing securities, primarily at the Utilities, in 2021 and approximately $1,400 million in aggregate of long-term debt at the Utilities during 2022 and 2023. The planned debt issuance is in addition to the issuance of long-term debt secured by the Clean Energy Businesses’ renewable electric production projects. The company’s plans also include the issuance of up to $800 million of common equity in 2021 and approximately $700 million in aggregate of common equity during 2022 and 2023, in addition to equity under its dividend reinvestment, employee stock purchase and long-term incentive plans.
See Attachment A to this press release for a reconciliation of Con Edison’s reported earnings per share to adjusted earnings per share and reported net income for common stock to adjusted earnings for the three months and years ended December 31, 2020 and 2019. See Attachment B for the company’s consolidated income statements for the three months and years ended 2020 and 2019. See Attachments C and D for the estimated effect of major factors resulting in variations in earnings per share and net income for common stock for the three months and year ended December 31, 2020 compared to the 2019 periods.
The company’s 2020 Annual Report on Form 10-K is being filed with the Securities and Exchange Commission. A 2020 earnings release presentation will be available at ConEdison.com. (Select “For Investors” and then select “Press Releases.”)
