Consolidated Edison, Inc. Status update

Hello, and thank you for joining us. I'm Jan Childress, Director of Investor Relations for Consolidated Edison. We're happy to be here today for our annual investor relations update. This presentation includes information on Con Edison's strategy. That strategy includes enabling the achievement of goals set forth in clean energy and climate-related laws and regulations, and strengthening and modernizing our energy delivery systems. The presentation accordingly contains forward-looking statements of future expectations and not facts that are intended to qualify for the Safe Harbor provisions of the federal securities laws. Actual results or developments might differ materially from those included in the forward-looking statements because of various factors identified in the presentation and in our public filings. This presentation also contains financial measures, adjusted earnings, and adjusted earnings per share that are not determined in accordance with generally accepted accounting principles or GAAP.

These non-GAAP financial measures should not be considered as an alternative financial performance determined in accordance with GAAP. A reconciliation of non-GAAP financial measures to their GAAP equivalents are included within the presentation. Please note that there is an Ask a Question box right beneath the webcast player. Type in any questions you have at any time and click the Submit button. We will go through your questions at the end of our formal remarks. I'd like to turn this over to Con Edison's Chairman and CEO, Tim Cawley.

Good morning, and welcome to our seventh annual webcast outlining our company's direction, our priorities, and the work underway across the enterprise to serve one of the most important, complex, and dynamic regions in the world. I want to begin with a simple but important point about our investment thesis. Serving much of the New York metropolitan area, Con Edison is not a major candidate for the hyperscale data centers that seem to dominate the news today for some of our peers. Instead, Con Edison's investment thesis is largely grounded in a nation-leading electrification effort. New York State clean energy targets, New York City mandates, and customer preferences are fueling an unprecedented energy transition encompassing buildings, both new and existing, and vehicles, especially fleets. Electrification, coupled with core system needs and resiliency demands, are fueling our increasing infrastructure investments.

Today, I join seven members of our senior management team to share with you how we're helping to make this energy transition a reality, how we're anticipating and meeting the challenge of more frequent and extreme weather events, and how we're accomplishing our charge in a sustainable manner that prioritizes safety, reliability, customer affordability, and shareholder value. To be sure, behind the eight of us presenting today are 15,000 dedicated, skilled employees who constitute our very core and make all of this happen. We salute them as we present their hard work to you. New York City and the adjacent counties we serve are not an ordinary service territory. We serve a global economic center, a dense urban ecosystem, and a region where energy reliability underpins daily life, commerce, healthcare, transportation, education, culture, and financial markets.

New York City is home to the nation's largest central business district, world-leading hospitals, nearly 200,000 small businesses, the largest public school system in the U.S., the United Nations, the New York Stock Exchange, NASDAQ, the nation's largest mass transit system, and LaGuardia and JFK International Airports. Con Edison powers that ecosystem. Con Edison is among the nation's largest investor-owned utilities. Through regulated utilities, Con Edison of New York and Orange and Rockland, which we'll refer to as CECONY and O&R respectively, we provide electric, gas, and steam service to millions of people. Most of our systems are underground. In fact, 70% of our electric grid is underground, making it the largest underground system in the U.S. CECONY's best-in-class electric reliability is enhanced by grid resiliency initiatives and diagnostic tools to manage our vast underground system.

Our gas system overlaps our electric service area, but only partially, as the boroughs of Brooklyn, Staten Island, and roughly two-thirds of Queens are served by other gas distribution utilities. That means that as gas and other fossil fuel customers in these boroughs electrify, the Con Edison electric grid grows. We also operate the largest steam system in the U.S., serving Manhattan below 96th Street. Our federally regulated Con Edison Transmission unit invests in and develops electric transmission projects in the Northeast. New York's energy transition must be understood in the context of New York itself. We've been providing energy to New York City for more than 200 years. Over that time, we've faced and overcome many challenges and managed through many transitions.

The geography of our service area, the sheer building density, and the proximity to major waterways underscores the varied hurdles we face today, from the threat of sea level rise, to meeting city and state mandates to help deliver clean, renewable energy to 10 million residents safely, reliably, and affordably. At the same time, New York faces physical and climate-related risks that are especially acute because our geography and density. Much of our infrastructure is located near waterways. Our climate studies inform us that extreme weather events are becoming more frequent and severe. Longer and more frequent heat waves, sea level rise, and flooding must be incorporated into engineering standards, investment plans, and emergency response. That's why our long-term strategy integrates climate resilience into core system planning rather than treating it as a separate initiative, and Michele O'Connell will explore this later in the program.

From heavy snowfall in January and February to blistering heat in July and August, this past year illustrates the extremes that we're prepared to face. We meet these challenges. CECONY's reliability performance has garnered industry recognition, including the 2025 ReliabilityOne national reliability award. CECONY is nine times more reliable than the national average. Our system design, which Matt Ketschke will discuss later, as well as ongoing strategic investments, contribute to CECONY's unparalleled reliability. Our resiliency investments since 2013, following Superstorm Sandy, have enabled us to avoid an estimated 1.3 million weather-related customer outages to date, thanks in large part to our skilled and talented workforce. New York has some of the most expansive clean energy policies in the country. State and city policies encourage electrification of buildings and transportation, renewable energy development, energy efficiency, and emissions reductions.

These policies create demand for new customer solutions, new grid capacity, and new ways of planning across our electric, gas, and steam systems. These are three examples of projects currently under development that are adding demand through electrification. The modernization of JFK International Airport, the Willets Point mixed use development in Queens, and the modernization of the Port Authority Bus Terminal in Midtown Manhattan. The JFK and Port Authority projects will include extensive fleet electrification. Projects like these are happening at various scales across CECONY and O&R service territories, and the resulting increased demand for electricity is fueling significant infrastructure investment, $38 billion over the next five years. This includes renewed substation construction to accommodate all of that growth. CECONY has nine new substations planned from 2026 through 2035. These are large projects to serve dense populations.

At Orange and Rockland, we plan to install 19 new substations, complete major upgrades at 12 substations, and deliver 33 transmission upgrades by 2035. The substations are smaller than those required at CECONY and require a fraction of the investment. Together, these investments are designed to add capacity, strengthen reliability, improve operational flexibility, and prepare the system for the future load growth associated with electrification. We do this planning with a focus not just on reliability, but on affordability as well. We implement non-wires alternatives that deploy battery storage, demand management, energy efficiency measures, and customer-sited distributed resources to delay or avoid more costly infrastructure investments. We are able to put off new substation development for several years because of these measures. Across our system, new customer requests for electric capacity are approximately 20% higher than the levels we have historically seen.

New residential and commercial development, electrical vehicle charging, building heating, water heating, and cooking electrification are converging today in our service area. Our responsibility is to plan for that demand so that customers can electrify without compromising reliability. Distribution investments are only one part of the clean energy transition. Transmission is the backbone that connects clean energy resources to the communities that need them. Con Edison Transmission was established to build on more than 100 years of experience developing, constructing, maintaining, and operating transmission facilities. Its mission is to become a leading developer and long-term owner of transmission infrastructure that enables the clean energy transition. We plan to invest more than $1 billion over the next five to 10 years to develop electric transmission that can bring clean, renewable energy from where it is produced to where it is needed.

That means supporting projects that are right-sized, expandable, and capable of improving reliability and resiliency while helping meet clean energy goals. in August, the New York Independent System Operator, or NYISO, launched its latest public policy transmission need planning process. The NYISO is due to file proposed transmission needs based on stakeholder feedback with the New York State Public Service Commission on October 16, 2026, for the 2026 through 2028 planning cycle. The Propel NY Energy project came out of NYISO's public policy process. NYISO selected the New York Power Authority and New York Transco to bolster the electric transmission network across Long Island, New York City, and Westchester County. The project includes underground and submarine transmission lines and new or upgraded substations. Its purpose is to improve reliability, strengthen resiliency, and help deliver more clean energy from renewable generation sources into the statewide grid.

New York Transco's share of the $3.3 billion project is $2.2 billion, of which Con Ed Transmission has a 41.7% interest. Planning at the state level through NYISO and the New York State Reliability Council dovetail with our own planning processes. We have worked to build adaptability into our planning so that we can adjust to the latest insights and requirements, as well as the pace of customers' adoption of renewables and electrification technologies while balancing cost impacts. Our utility's integrated long-range plans detail our plan to reduce GHG emissions while staying true to our mission to efficiently provide safe, reliable, clean, and resilient energy. We identify investments by strategic objectives, clean energy, climate resilience, core service, and customer engagement. As a regulated business, state and local policy do much to shape the direction of our business.

To explore that topic, I'd like to introduce Jen Hensley, our Senior Vice President for Corporate Affairs.