By John Kell
Consolidated Edison Inc.'s (ED) third-quarter profit grew 5.5%
as the utility company reported revenue growth across all business
segments.
The utility, which serves the New York metropolitan area, has
reported modest revenue growth in each quarter of 2013. Though the
top line continues to climb, albeit modestly, the company has
requested a base-rate increase totaling about $450 million for all
its operations, which includes electric, gas and steam.
The new rates, if approved by a regulatory agency, could go into
effect by 2014. But the state Public Service Commission, which
makes the final ruling on the case, has said that because of low
interest rates on ConEd's borrowing, the utility can actually cut
its rates while still providing investors a fair return. ConEd,
meanwhile, has said it needs more money to buttress its system
against future storms like superstorm Sandy.
ConEd posted a profit of $464 million, or $1.58 a share, up from
$440 million, or $1.49 a share, a year earlier. Total operating
revenue climbed 1.3% to $3.48 billion.
Analysts surveyed by Thomson Reuters expected a profit of $1.42
a share and $3.57 billion in revenue.
Revenue from the electric business--ConEd's largest top-line
generator--increased 0.4%. Revenue also grew at the company's
smaller segments: gas, steam and non-utility.
Operating expenses climbed 1.6% to $2.63 billion.
Shares, inactive in after-hours trading, have risen 5.6% in
2013.
Write to John Kell at john.kell@wsj.com
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