By Nathalie Tadena
Consolidated Edison Inc.'s (ED) second-quarter earnings slid 20%
as the utility company reported weaker revenue from its electric
business and higher operating expenses.
The utility, which serves the New York metropolitan area, has
requested a base rate increase totaling $443 million for all its
operations, which includes electric, gas and steam. The New York
Public Service Commission is expected to issue an order on the
request by the end of 2013, with new rates to go into effect in
January 2014. Moody's Investors Service recently raised its outlook
on ConEd to positive, pointing to a likely positive decision on new
base rates. The ratings firm has also noted that ConEd's regulatory
environment has become more predictable in recent years and the
company is supported by its resiliency through the recession and
natural disasters, as well as an expanding local economy.
Overall, Consolidated Edison reported a profit of $172 million,
or 59 cents a share, down from $214 million, or 73 cents a share, a
year earlier. Total operating revenue increased 1.7%, to $2.82
billion.
Analysts polled by Thomson Reuters had projected earnings of 57
cents a share and revenue of $2.85 billion.
Revenue from the electric business--ConEd's largest top-line
generator by far--slid 3.4%. Gas and steam revenues rose 22% and
42%, respectively. Nonutility revenue improved 6%.
Operating expenses were up 5.9%. Net interest expense declined
1.3%, to $151 million.
Shares closed at $60.33 and were unchanged after hours. The
stock has fallen 4.7% over the past three months.
Write to Nathalie Tadena at nathalie.tadena@wsj.com
Order free Annual Report for Consolidated Edison, Inc.
Visit http://djnweurope.ar.wilink.com/?ticker=US2091151041 or
call +44 (0)208 391 6028
Subscribe to WSJ: http://online.wsj.com?mod=djnwires