ConEd Profit Rises, Lifts 2015 Outlook

By Josh Beckerman 

Consolidated Edison Inc.'s first-quarter profit rose 2.5%, as revenue declined alongside lower operating and maintenance expenses.

The company increased its 2015 outlook for earnings excluding items to the range of $3.90 to $4.05 a share, from a prior view of $3.80 to $4, reflecting cold weather that led to higher steam-delivery revenue.

The company's Consolidated Edison Co. of New York utility unit has about 3.4 million electric-service customers. Its other operations include Orange and Rockland Utilities Inc.

A fatal March 26 Manhattan explosion has had repercussions for utility customers. Officials have investigated whether contractors accessed gas lines without permission in the building where the explosion took place. In the 20 days after the incident, there was a higher rate of service turnoffs compared with the previous 25 days, including a precautionary turnoff at a 43-story apartment building.

Standard & Poor's Ratings Services said March 27 that the explosion didn't affect its rating or outlook on Consolidated Edison.

On April 20, the Con Edison utility entered a joint proposal with the staff of the New York State Public Service Commission and other parties to extend a current electric rate plan for an additional year through 2016.

Under the proposal, subject to approval by the commission, the rate plan for 2016 doesn't include a rate increase or decrease.

In January, the utility filed for a rate increase which it said would help fund investments in its system.

Last month, renewables and infrastructure unit Con Edison Development announced a battery energy storage agreement with General Electric Co.

Overall, first-quarter net income was $370 million, or $1.26 a share, compared with $361 million, or $1.23 a share, a year earlier. Revenue fell to $3.62 billion from $3.79 billion.

Earnings excluding items rose to $1.25 a share from $1.17.

Analysts polled by Thomson Reuters expected earnings of $1.18 a share on revenue of $3.77 billion.

Write to Josh Beckerman at [e-mail]

Access Investor Kit for Consolidated Edison, Inc.

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US2091151041

Access Investor Kit for General Electric Co.

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US3696041033

Subscribe to WSJ: http://online.wsj.com?mod=djnwires