Chief Executive Officer’s Letter

Con Edison has been resolute and focused on our mission to remain an industry leader in providing safe and reliable energy for the more than 10 million people we serve.

I am proud of the resourcefulness and resilience our employees have shown throughout this pandemic — working to keep our great city and surrounding region energized. So, it was a truly special moment this past July when New York City invited our employees to march with other essential workers and first responders in the Hometown Heroes Parade. It is an honor we will always cherish.

We are moving forward with bold and ambitious plans that will protect and preserve the environment while making our company more sustainable. Guided by our three priorities — safety, operational excellence, and the customer experience — we are determined to fulfill every provision of our Clean Energy Commitment. Providing our customers with cleaner energy that is accessible to all, delivered by a more resilient system is the right plan for these times. It is the right response to those who seek alternative forms of energy. And it is the right solution to the challenges posed by climate change.

In keeping with our commitment, all Con Edison facilities will be powered by 100 percent clean energy by 2030. Our Reliable Clean City Project will create new underground electric transmission lines that will allow us to phase out peaking power plants that burn fossil fuels and instead deliver solar- and wind-generated electricity throughout our service area. In the meantime, we continue to launch battery storage projects that are enhancing reliability and supporting renewable generation on Staten Island, City Island in the Bronx, and Ozone Park in Queens.

We have long been an industry leader in energy efficiency. Since 2009, we have helped more than 2.5 million customers upgrade to energy-efficient equipment. That is vital for our customers and the environment.

Equally important is our ongoing effort to mitigate the effects of extreme weather. Across the nation and around the globe, these events are becoming more frequent and more severe. Last September provided a vivid example of what we face when Tropical Storm Ida battered our area with a month’s worth of rain in a single day.

Our climate change resiliency plan includes investing $2 billion by 2030 on projects such as acquiring submersible equipment and moving overhead power lines underground to deal more effectively with weather challenges. Our plan also includes preparing for more extreme heat and fortifying the infrastructure in low-income neighborhoods where residents are most vulnerable.

The New York Times asked experts to review our plan. Those experts called it “the gold standard” in our industry. And you can read all about our plan in this Sustainability Report.

We have also moved to the forefront on electric vehicles. Next year, for the first time, there will be an electric bucket truck on New York City streets. It will be ours. All our new light-duty vehicle purchases are EVs. And we expect 80 percent of our light-duty vehicle fleet to be EVs by 2030, and 100 percent by 2035.

In addition, we are making it easier for our customers to go electric. We are providing incentives to install and operate electric-vehicle chargers and offering reduced rates for charging EVs during off-peak periods. Thanks to those incentives, North America’s largest EV charging hub has opened in Brooklyn’s Bedford-Stuyvesant neighborhood.

By 2025, we will help to increase the number of charging stations tenfold across the five boroughs and Westchester, Orange, and Rockland counties. And because more electric vehicles mean fewer gas emissions, this initiative aligns with our clean energy vision.

Our role as a guardian of the environment is one that we take very seriously. Since 2005, we have reduced our greenhouse gas emissions by 53 percent. We will continue to lower emissions through such actions as reducing the use of fossil fuels and replacing thousands of miles of older pipes to reduce gas leaks. We are also building new transmission lines and establishing facilities to house hundreds of megawatts of energy storage to support the use of renewables. Plans for offshore wind farms are also in the works. We will create clean energy hubs that connect into our system to deliver wind energy directly to our customers.

Between 2021 and 2023, we will have invested more than $1 billion in renewable energy. Our commitment to alternative energy sources has made Con Edison the second-largest producer of solar power in North America.

Proud as we are of our work to protect the environment, we are also aware of the need to enhance the quality of life for our customers and keep their communities sustainable. Therefore, we launched a program that has empowered low- and moderate-income residents by training them to install solar panels on about 40 city-owned apartment buildings so far. Teaching in-demand skills to residents who will also reap the benefits of lower energy costs is a win-win.

Safety is, and always will be, the foundation of everything we do. So, I’m pleased to note that in 2021 Con Edison of New York had the second-lowest number of injuries and illnesses in our history. At Orange & Rockland, an increased emphasis on peer coaching and hands-on training has led to significantly fewer injuries and the company’s lowest rate of vehicle collisions ever. And we continue to install gas detectors in homes to help keep customers safe.

Everything we accomplish as a company is the result of our extraordinary team —one that we are committed to making more diverse and inclusive. We have implemented a diversity, equity, and inclusion strategy and action plan that strive to create a workplace where all our employees can be their authentic selves, feel valued, and reach their full potential. The action plan’s focus is on increasing the number of people of color and women at all levels of the company and transforming our culture. A 2021 companywide employee survey was conducted to gain further insights into our diversity, equity, and inclusion efforts. The survey provided valuable information about how employees from all groups experience the Company’s culture, areas of strength, and areas where the Company can make even greater progress.

As a company, we are also holding ourselves accountable by tying executive compensation to our diversity goals. People are noticing our efforts. In 2021, a social-justice group named Con Edison one of America’s 10 best companies at incorporating diversity and inclusion into our policies and practices.

Such national recognition is greatly appreciated. But we know there is more to be done. We want to always ensure that Con Edison is a great place for people to work, learn, and grow. This is the kind of growth that will sustain us. And we want to continue to be a company that gets big things done — a company that leads, that sets big goals and works smartly and safely to achieve them, for the benefit of our customers, our communities, and the environment.

— Tim Cawley,
Chairman and Chief Executive Officer, Consolidated Edison, Inc.

Company Profile

Consolidated Edison, Inc. (“Con Edison”) is one of the nation’s largest investor-owned energy-delivery companies, with approximately $14 billion in revenues and $63 billion in assets. The company provides a wide range of energy-related products and services to its customers through the following subsidiaries:

• Consolidated Edison Company of New York, Inc. (CECONY), a regulated utility providing electric, gas and steam service to customers in New York City and Westchester County, New York
• Orange & Rockland Utilities, Inc. (O&R), a regulated utility serving customers in a 1,300-square-mile-area in southeastern New York State and northern New Jersey
• Con Edison Clean Energy Businesses, Inc. (CEB),which through its subsidiaries develops, owns and operates renewable and sustainable energy infrastructure projects and provides energy-related products and services to wholesale and retail customers
• Con Edison Transmission (CET), which through its subsidiaries develops and invests in electric transmission projects.

Read our Annual Report (Consolidated Edison, Inc. – Annual Reports (conedison.com).

This report contains forward-looking statements that are intended to qualify for the safe-harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are statements of future expectations and not facts. Words such as “forecasts,” “expects,” “estimates,” “anticipates,” “believes,” “plans,” “will,” “aim,” “target,” and similar expressions identify forward-looking statements. The forward-looking statements reflect information available and assumptions at the time the statements are made and speak only as of that time. Actual results or developments might differ materially from those included in the forward-looking statements because of various factors including, but not limited to, those discussed under “Risk Factors,” in Con Edison’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

Revenue by Business(million $)

Sustainability Strategy

Con Edison is dedicated to making a transformational impact on the environment, our region, and the lives of our employees and the people we serve. The company’s sustainability strategy goes hand in hand with our guiding principles of:  

• Safety
• Operational excellence
• Enhancing the customer experience

Our long-term success embraces people, planet, and sustainable business practices. We invest in people by creating a more diverse, equitable, and inclusive workforce and by putting resources into underserved communities. We protect the planet with our ambitious Clean Energy Commitment. And we aim to maintain a strong financial base while pursuing growth as we transition to a clean energy future. Our strategy is reflective of our deep commitment to sound environmental, social and governance (ESG) practices. This strategy is focused on the following key areas:

• Our bold Clean Energy Commitment, which reflects our strategy to lead New York and the nation in the transition to a clean energy future for our customers. We will do that by investing in, building, and operating reliable, resilient, and innovative energy infrastructure, advancing electrification of heating and transportation, and aggressively transitioning away from fossil fuels to a net-zero economy by 2050.
• Protecting our critical infrastructure against the impacts of climate change
• Expanding our national renewable electric production business – currently the 2nd largest owner of solar electricity production in North America
• Developing transmission opportunities to bring clean energy to customers in New York and across the Northeast and Mid-Atlantic
• Committing to diversity, equity and inclusion for our workforce and through supplier diversity, and
• Maintaining sound governance practices

Our Corporate Strategy Stems from Our Guiding Principles

Our corporate strategy grows from our three guiding principles and seeks to address the growing concern globally of the impacts of climate change and the desire of customers and the public to have increasing say over how their energy is produced and used.

The pursuit of our guiding principles should enable us to continue to provide steady, predictable earnings, maintain balance sheet stability, and pay attractive dividends for our shareholders – in 2022, we raised our annualized dividend for the 48th consecutive year.

Guiding Principle: Safety

Safety is the cornerstone of all that we do at Con Edison. We continue to strive for a zero-harm work environment for our employees and the public we serve.

While 2021 was another year of unprecedented challenges, as a team, our focus on safety remained relentless and was evident in our strong safety performance, resulting in 2021 being the second lowest in terms of number of injuries and illnesses in company history.

We have been aggressive in upgrading our systems against severe weather, having invested $1 billion over four years following Superstorm Sandy. We coordinated with Westchester County in New York to invest an additional $100 million to fortify our electric system following a pair of successive severe storms in 2018.

We continue to replace and repair leak-prone gas mains, reducing risk and cutting methane emissions. Con Edison was the first utility in the country to install natural-gas detectors that monitor the air where our gas service pipes enter buildings and send alarms to our control center personnel.

To make our electric systems safer, we’re using smart meter data to develop algorithms to avoid electrical shocks. Our 3D model of the 91-mile steam system better estimates potential problems caused by heavy rain and flash flooding, which improves safety and operations.

Surveillance of our electric and gas systems is also a priority as we conduct surveys of our entire electric and gas systems monthly.

Guiding Principle: Operational Excellence

Operational excellence is at our center. It is the rigor and procedures we use to design, construct, operate, and protect our energy systems. Con Edison’s electric system has historically been one of the most reliable electric systems in the country. However, we know our customers’ reliance on electricity is growing and their expectations are increasing. We are deploying sensors, using robotics to monitor our systems, applying analytics, and using other technologies to achieve the operating excellence that our customers demand.

To maintain our world-class reliability, we plan to invest around $4 billion every year on our electric-, gas-, and steam-delivery systems. We use a risk-based approach to maximize the impact of our investments. We seek to continuously improve during blue-sky days and emergencies. As part of our work to enhance our storm-outage response, we’ve purchased 90 bucket trucks that are ready to be used by flow-in utility workers who in the past have had to drive long distances to help our region recover.

Minimizing risk is key to operational excellence. This work begins with cyber and physical security. We invest in cybersecurity to protect customers’ personal information and our assets. We regularly train employees on potential cyber and insider threats, collaborating with government and industry partners. In 2021, we completed major physical security upgrades at many company facilities.

When it comes to a cleaner, more efficient future, our strategy involves reducing harmful emissions and expanding our portfolio of renewable energy production. Our targets include reducing sulfur hexafluoride emissions by five percent annually and reducing methane emissions by replacing four percent of our priority gas distribution mains annually in our natural gas local distribution system.

Guiding Principle: Enhancing the customer experience

Seeing from the perspective of our customers is what allows us to create the best customer experiences. We understand the pandemic and all its ramifications have caused incredible hardship for many of our customers. We are offering flexible payment agreements and pointing them to additional resources. Our customers have also made it clear that they want more access to renewables, energy efficiency, demand response, storage, and information to help them manage their energy usage and bills.

As part of our $1.4 billion, multi-year, smart meter investment, we are more than 92% complete with mass deployment activities, having installed 4.9 million smart meters. We are targeting to substantially complete the remaining installations by the end of 2022. Smart meters are the cornerstone of our efforts to meet the evolving needs of customers by providing greater insights into energy use with near real-time data—a truly transformational technology.

We are already seeing customer benefits and savings from our smart meter rollout. These benefits include improvements in customer restoration times following storm outages because we have integrated the smart meters with our outage management system. Net savings for customers from smart meters are expected to cumulate to $1 billion over the life of the assets.

The environmental benefits of smart meters are substantial as well: we expect to be able to reduce distribution voltage by as much as three percent, resulting in a one-and-a-half percent reduction in energy usage. Smart meters also make possible more interactive rate designs for our customers.

Clean Energy Future

In 2019, New York State enacted the Climate Leadership and Community Protection Act (CLCPA) that established a goal of 70 percent of the electricity procured by load-serving entities regulated by the New York State Public Service Commission to be produced by renewable energy systems by 2030 and requires the statewide electrical system to have zero emissions by 2040. The law also codified state targets for energy efficiency, electric vehicles, emissions reductions, offshore wind (9,000 megawatts (MW) by 2035), solar (6,000 MW by 2025) and energy storage (6,000 MW by 2030¹). We are in support of the state goals and have worked to codify our support through the Company’s Clean Energy Commitment.

¹  Note this was increased from 3,000 MW to a target of 6,000 MW by 2030 as per Governor Hochul’s New York State of the State Address.

Our Expanded Clean Energy Commitment

A major articulation of our sustainability strategy is our Clean Energy Commitment. In 2021, we updated our Clean Energy Commitment to make it bolder and meet the moment we are in. Our commitment to the clean energy future is supported by five pillars, detailed below. Each pillar is comprised of various company initiatives.

Our Clean Energy Commitment is available on our website at the following link: Our Clean Energy Commitment | Con Edison

Climate Change Resilience and Adaptation

Con Edison’s energy infrastructure is vulnerable to climate change, and the Company recognizes the global scientific consensus that these changes are accelerating. Accordingly, in December 2020, the Company released our Climate Change Implementation Plan, a follow-up to our 2019 Climate Change Vulnerability Study. The 36-month study, performed in conjunction with ICF International and Columbia University’s Lamont-Doherty Earth Observatory, evaluated our present-day infrastructure serving New York City and Westchester County under a range of potential climate futures.

The plan reflects not only the experience of experts across Con Edison, but also the feedback, input, and experience of more than 50 stakeholders, including New York State Department of Public Service staff, municipal representatives, and environmental advocacy organizations.

The company’s announced pathways prepare for high risk scenarios of potential climate change impacts, the implementation of which would allow us to go beyond the goals set out in the Paris Agreement. The plan addresses mitigation measures in response to identified company-specific climate-driven risks:

• Sea level rise
• Coastal storm surge
• Inland flooding from intense rainfall
• Hurricane-strength winds, and
• Extreme heat

The study estimates that we may need to invest between $1.8 billion and $5.2 billion by 2050 on targeted programs to protect our electric, gas and steam delivery systems and our customers from the impacts of climate change.

Con Edison is already using its climate change projections for decision-making in areas such as power supply forecasting. Starting in 2020, we began integrating climate considerations into our planning, engineering, operations, and emergency response practices to adapt to climate change. In addition, the company formed a new executive-level committee focused on climate risk and resilience.

While the Climate Change Implementation Plan provides a strong foundation for action, Con Edison will evolve its adaptation efforts over time based on new climate science and its customers’ needs. It will review its climate projections annually and update them at least every five years. The company will provide regular public reporting on its progress through its annual Sustainability Report and other disclosures.

Con Edison Clean Energy Businesses

The Clean Energy Businesses (CEB) are forecasted to grow over time, as clean energy targets and advancements in renewable technologies present opportunities for CEB investment. On December 31, 2021 CEB had 3,004 MW (AC) of utility-scale renewable energy production projects in service (2,996 MW) or in construction (8 MW) and 69 MW (AC) of behind-the-meter renewable energy production projects in service (65 MW) or in construction (4 MW). Our assets are comprised of 90% solar and 10% wind. We have projects operating in 20 states in the U.S. and are the second-largest owner and operator of solar electricity generation in North America.

CEB has a dedicated battery storage team and is actively integrating storage into new renewable development as well as into operating assets where economical. Battery storage is also offered for projects CEB is developing on behalf of renewable energy and energy efficiency customers.

Con Edison is considering strategic alternatives with respect to the Clean Energy Businesses.

Additional Opportunities in Renewable Energy Production and Electric Transmission

Con Edison Company of New York in January 2022 filed a proposal for new electric and gas rates. The proposal included plans to expedite the development 1,000 MW of solar electric production over 10 years and to assume ownership of those projects for the benefit of low- and moderate-income customers. CECONY currently has a pilot community solar project underway that provides both clean energy and associated skilled employment opportunities in economically disadvantaged areas.

Con Edison is also pursuing opportunities to develop and own electric transmission to connect new renewable energy projects to customers. New York State, our principle state regulatory jurisdiction, has a goal of 70% renewable electricity by 2030.

In April 2021, CECONY received approval from the New York State Public Service Commission to build three electric transmission projects at an estimated cost of $780 million to provide relief from loss of electric generating peaking plants that will not meet NOx emission rules and to enable delivery of renewable generation – both from offshore and from upstate. One project is expected to be in service by 2023 and the other two projects by 2025.

CECONY and O&R joined other state utilities in a joint filing to develop additional electric transmission projects to enable that New York’s electric grid support the State’s climate mandates of the CLCPA and the Accelerated Renewable Energy Growth and Community Benefit Act.  CECONY’s proposals include two clean energy hubs to facilitated access to renewable energy, especially offshore wind, for its customers.

Con Edison Transmission

Con Edison Transmission (CET) is the company’s FERC (Federal Energy Regulatory Commission) regulated subsidiary that invests in new electric transmission to support the increased use of clean energy resources, including offshore wind.

CET has a 45.7% in the NY Transco that is developing a new $600 million, plus interconnection costs, electric transmission line that will enhance the grid’s reliability and bring renewable energy to customers. That line is scheduled to be in service in December 2023 and, along with another segment under construction, will increase capacity by 1,850 MW.

CET will continue to pursue opportunities to build stronger transmission backbones and create the pathways to deliver clean offshore wind energy as well as other clean energy resources. Con Edison Transmission plans to invest more than $1 billion over the next 5 to 10 years to develop, with strategic partners, electric transmission to bring clean, renewable energy from where it is produced to where it is needed to serve customers, advocating a “transmission first” approach (building out the transmission capacity before focusing on building renewable assets) where appropriate and furthering the Biden Administration’s goal of 100% clean electricity by 2035.

Diversity, Equity & Inclusion

At Con Edison, we have a long-standing commitment to diversity, equity and inclusion. Our vision is to be a company whose values and behaviors foster a culture of inclusion and respect for all. We know that a diverse and inclusive company is a stronger, more successful company.

Our corporate Diversity, Equity & Inclusion (DEI) strategy is built on four key elements – ongoing learning and competency building; inclusive and visible leadership support; reviewing our systems, policies, and procedures to eliminate potential barriers to inclusion; celebrating and acknowledging the diversity of our workforce.

In addition, we implemented our 14-point Action Plan, built on a two-pronged approach: 1) data-driven change to ensure that our employees at all levels reflect the diversity of our communities; and 2) culture transformation to promote behaviors and mindsets that support a diverse, equitable and inclusive workplace. Our Action Plan is supported by our DEI Task Force.

Our commitment to diversity also extends to our Supply Chain. Our effort in this area helps us to increase competition within our vendor base, create millions of dollars of opportunities for minority-owned and women-owned businesses and contribute to the economic vitality of the communities we serve.

Our people will always be our greatest strength—and the incredible range of culture, experience, and perspective makes the company stronger.

Maintaining Sound Governance Practices: Setting Priorities and Strategy

While the company prepares for the impact of climate change, our broader efforts are focused on helping mitigate climate change. We have a governance structure and strategy in place to harness the skills and intellect of our employees consistent with sound, sustainable principles.

As disclosed in our Proxy Statement, the Company is firmly committed to sustainability, which is broadly overseen by the Board. The Board reviews and discusses various sustainability topics throughout the year and routinely reviews environmental issues (including climate change) and their impact on the Company’s operations, strategies, and risk profile.

In addition, the Board has delegated to the appropriate committees, responsibility for the specific sustainability categories relating to the oversight with which such committees are charged. The Safety, Environment, Operations and Sustainability Committee oversees sustainability matters relating to safety and the environment and reviews the Company’s Annual Sustainability Report prior to its publication. In discharging its responsibilities, the Safety, Environment, Operations and Sustainability Committee, at each of its meetings, reviews certain key performance indicators relating to climate risk. The Corporate Governance and Nominating Committee is charged with sustainability matters relating to governance, including overseeing the Company’s approach to political and lobbying activities and receiving periodic reports about the Company’s political contributions, lobbying and trade association activities. The Management, Development, and Compensation Committee’s responsibilities include oversight of sustainability topics relating to human capital management. The Management, Development, and Compensation Committee annually reviews performance results as well as proposed performance indicators for the following year.

Committees not specifically tasked with oversight of sustainability also periodically review sustainability related matters. As part of its review of strategy and financial plans, the Finance Committee considers the financial sustainability of the Company.

To help guide and oversee our sustainability strategy, we have developed a governance structure that extends from our Board of Directors to the employee level. Our structure includes:

• Safety, Environment, Operations, and Sustainability Committee of the Board
• Corporate Governance and Nominating Committee of the Board
• Management, Development and Compensation Committee of the Board
• Vice President-level Environmental, Social, and Governance Committee

In 2016, we engaged BSR, a leading sustainability consulting firm, to assist us in developing our sustainability materiality assessment and determine our key sustainability priorities, and in 2019 we worked with New York University in refreshing that assessment and resulting priorities.

We have integrated our sustainability priorities, including our Climate Change Implementation Plan, with our long-range planning. Our 20-year plan for our electric and gas businesses is designed to help us navigate today’s challenges while preparing for changes in the energy landscape.

Our long-range plans identify $68 billion in strategic investments to advance our clean energy, climate resilience, core service, and customer engagement priorities over the next 10 years. These plans include three representative pathways toward our net-zero carbon goals for our electric, gas and steam operations:

• Full electrification that relies on existing technology solutions,
• Targeted electrification that balances existing technologies with innovations in low-to-zero carbon gaseous fuel technologies, and
• Hybrid consumption that benefits from existing electric, gas and steam infrastructure to deliver low-carbon energy.

The plans are available on our website at the following links: Long Range Plans | Con Edison

R&D/Innovation

An innovative spirit and hard work are two of our company’s greatest assets. Our research and development teams work diligently to find solutions that make the workplace safer and improve our operations and our customers’ quality of life. Some of our numerous ongoing projects are described below.

Safety

• Championed a project with the Electric Power Research Institute (EPRI) exploring a new smart alarm logic for potential chemistry excursions in facilities. The Chemistry Smart Alarm will allow for improved response time by reducing troubleshooting time.
• Presented a second generation breaker racking robot prototype at EPRI’s Switching Safety and Reliability Task Force meeting. The robot was developed in collaboration with ULC Robotics and has the potential to create a zero-harm environment by fully automating the racking process.
• Participated in the Building Electrification Panel at the 2021 ARPA-E Energy Innovation Summit. Panelists lent their subject matter expertise in a discussion of how to overcome the technical challenges with rapid electrification of the buildings.
• Assumed the role of Chair of the International Electrochemical Commission Technical Committee 129: Robotics for electricity generation, transmission and distribution systems. The Committee’s scope is to standardize robotics applied in power systems, to assist or even replace human workers in completing or carrying out potentially dangerous or strenuous tasks.
• Completed preliminary field evaluation and optimization of the electric safety job briefing app, designed to help mitigate high hazard injuries and allow for completion of comprehensive job briefings. The job briefing administrative portal allows for enhanced reviewing capability and approval tracking.

Operational Excellence

• Finalized the EPRI project, “Insider Threat Program Management Guidebook for Electric Utilities” R&D and Corporate Security partnered to produce this guidebook, which establishes an operational foundation and maturity strategy for utility companies on insider threat.
• Received commendations from EPRI for leadership of, and participation in, cyber forensics programs and ongoing capabilities development to identify the root causes of cyber incidence and incorporate strategies for incident response.
• Completed a project with the University of Tennessee to select and size a supercapacitor system intended for rail regenerative braking in the NYC Transit system. The project simulated the operation of dozens of ultracapacitors and lithium-ion capacitors using train dynamics models, sizing the system to meet power, energy, and thermal requirements, with a goal of identifying the optimal system.
• Completed the first autonomous drone inspection for investigation and confirmation of transmission tower configuration and replacement planning. The results and efficiency of the drone survey demonstrate its improvement over the traditional manual inspection protocol.
• Launched an evaluation of the long-term thermal-mechanical performance of TS Conductor’s carbon fiber core conductor. In collaboration with EPRI, this project will also perform accelerated aging tests which may help predict the life expectancy of the conductor while operating at the maximum allowable conductor temperature.
• Demonstrated the potential of a Transmission Network Visualization System (TNVS) to maintain continuity of services in the event of a dark sky event when there is complete loss of the energy management system and corporate connectivity. TNVS is a near real time visual tool providing bulk power feeder information and the status of associated equipment.
• Demonstrated the efficacy of a thermal imaging tool for through-cover inspections to reduce jobsite set-up, reduce necessary personal protective equipment, and allow for more frequent inspections. This tool allows the tracking of low-level hotspot conditions and mitigation of them before developing into a higher risk condition.

Customer Experience

• Participated in the American Public Gas Association sponsored roundtable to educate members in understanding how natural gas detectors (NGD) enhance the safety of gas distribution for their members.
• Field tested the ZEVAC Mini to augment the use of zero emissions vacuum (ZEVAC) technology by field crews. Designed to be used on smaller pipe sizes, the ZEVAC Mini avoids natural gas emissions from gas mains by pumping the gas out of a gas main that is being taken out of service and into the portion of the gas main still in service.

Clean Energy

• Hosted an interactive panel discussion among hydrogen industry experts as part of the two-day Hydrogen Workshop sponsored by CEATI International Demand Side Management Program and Strategic Options for Integration Emerging Technologies and Distributed Energy Interest Group.
• Attended, as an industry participant in the Carbon to Value Initiative, a demonstration of the “first building-level carbon capture project in the City of New York”. The new system takes flue gas produced during boiler combustion, cools it, separates out the oxygen and nitrogen and then liquefies and stores the carbon dioxide for use in future applications.
• Continued development of the country’s first ever all-electric bucket truck. The prototype is currently being designed and built; and upon delivery, a three-year field evaluation will commence to gather feedback on its performance and will help improve any gaps or deficiencies in the initial prototype design.
• Co-led a two-day strategic summit with Brookhaven National Laboratory, to explore the bold vision set out by the New York Climate Leadership and Community Protection Act (CLCPA) to address a Statewide energy paradigm that will result in a more sustainable society for today’s citizens and those yet to come by 2050.
• Completed the first round of field testing of Electro-Hydraulic Fracturing (EHF) technology, which uses plasma energy to break rocks exposed during construction activities.
• Participated, as an anchor sponsor of the Low-Carbon Resources Initiative, in the kick-off of the demonstration of the use of natural gas blends of up to 35 percent hydrogen for gas turbine combustion at the New York Power Authority’s Brentwood, Long Island facility.
• Demonstrated the effectiveness and efficiency of a self-contained heat pump system that extracts thermal energy from a building’s wastewater, with cooling capabilities for simultaneous domestic hot water production and air conditioning while reducing harmful emissions and decreasing energy resource needs.
• Joined the Guidehouse-led consortium, Building the Clean Hydrogen Economy, to identify and develop innovative pilot projects and their business cases to use clean hydrogen to decarbonize the energy sector and increase renewables integration.

Awards and Patents

• Awarded a three-way patent, with Palo Alto Research Center and General Electric, for optical monitoring to detect corrosion of power grid components. The system consists of objects designed to corrode before those portions being monitored, and sensors paired to those objects for advance warning.
• Awarded a new patent for a steam trap sensor and its method of operation. The system is comprised of a steam trap body and a disk operably coupled to the steam trap body.
• Awarded a new patent for a system to monitor and operate an underground valve. The system provides for the security of the underground valve by remote monitoring for any unapproved valve access and operation. The system also has an actuator operable to open and close the valve.
• Awarded a new patent for a system and method of monitoring a utility structure. The system includes sensing devices and processors to receive measured parameters and compare parameters to allowable thresholds.
• Awarded a new patent for a system and method of performing maintenance on a wing cock valve of a pressurized gas line.
• Awarded a new patent for a partition cover for a switchgear enclosure for electric distribution equipment enclosure inspections. The cover is designed for safer inspection of enclosures in a live environment.

Awards & Recognition

Sustainability is the umbrella that covers everything we do as a company. As we continue to serve our customers, promote safety, and help preserve the environment, we receive recognition and many prestigious awards for our projects and operational excellence. Here is a sample of our recent honors:

Safety & Environment

• Con Edison received the Energy Star Partner of the Year award from the U.S. Environmental Protection Agency for fighting climate change and protecting public health by helping customers use less energy.
• O&R also received the Energy Star Partner of the Year award for helping its customers save more than 55,000 megawatt hours of energy.
• Con Edison CEO Tim Cawley placed third and O&R CEO Robert Sanchez placed 23rd on City & State’s Energy Power 100 list. The list identifies public officials, energy executives, environmentalists, activists, academics, and others who are shaping New York’s transition to sustainability.
• Con Edison won the President’s Award from the Association of Edison Illuminating Companies (AEIC) for developing the Safety Leadership System application. The AEIC, founded in 1885, is the nation’s oldest organization of utility operations experts.
• For the 20th straight year, O&R has been recognized by the Arbor Day Foundation as a Tree Line USA energy company.

Operational Excellence

• The Smart Electric Power Alliance honored Con Edison for its commitment to carbon reduction and leadership in clean energy.
• Con Edison was awarded the Smart Energy Innovation Award in Best Practices for our demand response management systems portal.
• Chartwell Gold Award for Best Practices in Billing and Payments for our bill redesign

Customer Experience

• Con Edison’s smart meters earned the Best Practices award from the Smart Energy Consumer Collaborative, a consumer research group.
• O&R received three Awards of Distinction at the 27th annual Communicator Awards for its customer-service videos, and a Telly Award for its food insecurity video that appears in this Sustainability Report.
• The Stephen Siller Tunnel to Towers Foundation honored Con Edison for providing safe and reliable service during the pandemic.
• ReliabilityOne honored Con Edison for reliable service to customers in the Northeast.
• Esource Gold Award for Customer Experience for Virtual Assistant “Watt”.
• Escalent-Cogent Studies named us a Most Trusted Business Partner for our service to commercial customers.

Diversity, Equity, & Inclusion

• Con Edison ranked in the Top 5 among utilities on Forbes America’s list of Best Employers for Diversity.
• Latina Style magazine listed Con Edison as one of the Top 50 companies for Latinas to work in the U.S.
• Con Edison was recognized as a Top Veteran-friendly company by S. Veterans Magazine.

Governance

• Con Edison received a perfect score of 100 for the first time and was named a Trendsetter among S&P 500 companies in the 2021 CPA-Zicklin Index of Corporate Political Disclosure and Accountability. Con Edison is one of only 14 companies in the S&P 500 to score 100.

Employee Health & Safety

At Con Edison, our top priority is the safety of our employees and the public. Safety is engrained into the way we work, and we remain committed to embedding safety as a core principle of our culture. Consistent progress is essential to achieving our goal of a zero-harm workplace. At Consolidated Edison Company of New York, Inc. (CECONY), we have reduced injuries by more than 68% since 2009. In 2021, CECONY’s injury and illness rate of 1.22 was higher than our target of 1.00. We experienced one significant high-hazard injury last year. Orange & Rockland improved upon its best injury and illness rate 0.80 in 2021. O&R had no significant high-hazard injuries last year and has seen an 85% reduction in injuries and illnesses since 2009.

Key focus areas for sustained improvement include:

• Promoting a first-class safety culture by making safety personal and the focus of every task, every job, every day.
• Programmatic focus on areas of concern within the company and industry, such as hazard recognition and mitigation, soft tissue injuries , and slips, trips and falls.
• Closing gaps to prevent injuries by identifying and addressing unseen hazards.
• Preventing injuries by re-invigorating our Close Call program and developing a mobile application for submissions.
• Encouraging safety leadership through training, mentoring and technology with the accelerated adoption of the Safety Leadership System.
• Using and developing tools by leveraging data from job briefings.
• Training employees on driving and slips, trips, and falls conditions through simulations.
• Working towards 100% procedural compliance to support a zero-harm workplace.

At Con Edison, critical safety programs are maintained as corporate procedures to codify our proactive approach to safety. An essential safety practice is delivering Job Briefings. As outlined in corporate instruction GEHSI S24.07 – Job Briefings, job briefings must be conducted for each job and are required to be complete and robust reviews of the scope of work, including a discussion of any hazards associated with a job. Our Job Site Safety Exchange, Job Safety Analysis, Close Call, and Time Out programs are other examples that help us identify and mitigate safety risks.

Auditing plays a critical role in providing a field presence and supporting the company’s goal of a zero-harm workplace. Internal Auditing has a dedicated Environment, Health and Safety (EH&S) department. The group conducts two types of unannounced audits: EH&S compliance audits at facilities (such as Administrative Buildings, Service and Operation Centers, Generating Stations, Substations) and EH&S compliance inspections of employee and contractor crews working in the field. Internal Auditing also performs process reviews of various EH&S programs such as the Hearing Conservation Program, Respiratory Protection Program, Close Call Program, Spill Prevention, Control & Countermeasures, vehicle idling, spill reporting, remediation, waste management, and more. The annual audit plan includes a balance of each of these audit types.

It is company policy that our contractors comply with all applicable laws and Con Edison procedures or requirements. Our policies require that we procure, manage, and evaluate suppliers based on their environment, health, and safety performance. Contractor training is reviewed during the qualification process. We offer additional training for contractors at our Learning Center, if necessary. Contractors seeking to be qualified to perform field work must provide an Environmental, Health and Safety Plan (EHASP) detailing how they will comply with all environmental, health, and safety standards that apply to the work that they perform. EHASPs that simply restate the regulatory standards are not acceptable. Company field inspectors oversee all contractor work and are responsible for confirming that contractors are working in accordance with all applicable standards. If the supplier’s work fails to comply with the contract requirements, field inspectors must take immediate corrective action. A Contractor Field Observation Report (CFOR), infraction report, or Action Line must also be filed in our Contractor Oversight System. In addition, contractor safety performance is tied to some of our Key Performance Indicators.

In addition to the multitude of corporate procedures and instructions we maintain to support our health and safety program, we have safety-specific targets that we assess regularly. We track and report on our OSHA Injury and Illness rate on a monthly basis on both a corporate and departmental level. We also track our motor vehicle collision rates by collision type, helping us improve the efficacy of our driver safety programs. Over the past few years, we have developed the Safety Leadership System (SLS), which takes a data-driven approach to safety. The SLS enables us to view our safety performance from the corporate level all the way down to the smallest working group or individual. After implementing the system, we’ve seen a dramatic reduction in operating errors. We’re proud to say that the Association of Edison Illuminating Companies (AEIC) presented Con Edison with the 2021 Top 10 Achievement Award for the development of the SLS.

Con Edison of New YorkOSHA Incident Rate

Public Safety

We invested $3.39 billion in 2021 to fortify our electric, gas, and steam infrastructure. This investment underscores our commitment to providing energy to millions of customers efficiently and responsibly while protecting the environment and keeping people safe throughout our service area.

Electric

Consolidated Edison Company of New York, Inc. (CECONY) continues to develop tools, techniques, and management strategies to improve safety, troubleshoot problems, and increase efficiency. In 2021, Electric Operations’ Distribution Engineering team used the company’s enterprise data analytics platform and three-phase Advanced Meter Infrastructure (AMI) meter data to develop machine learning algorithms that remotely identify defective equipment. By detecting and repairing these conditions we can help avoid an electrical shock and/or disturbances in customer’s electrical service. In addition, the team worked to advance our thermal imaging capabilities by developing an industry-first thermal and visual borescope camera to help our crews inspect underground electric distribution manholes quickly and safely for high temperature anomalies that may indicate equipment repairs are required. This tool is the latest addition to the technology that CECONY is deploying to identify defective equipment, and risks to members of the public quickly and efficiently. CECONY continues to work to reduce manhole events with multiple programs including its industry recognized latched manhole technology and its vented manhole cover that reduce the severity of manhole events.

CECONY’s underground networks are surveyed for contact voltage 12 times a year, using mobile detectors. In 2021, we found and eliminated 5,803 cases of contact voltage. Of those, 5,264 cases (91%) were on non-Con Edison equipment (streetlights, electric signs, and other structures). We performed more than 39,000 inspections of our underground structures (manholes, service boxes, and transformer vaults).

Orange & Rockland Utilities, Inc’s (O&R) electric system testing is completed at least once every five years. In 2021, O&R performed 36,725 inspections and 39,127 tests.

Gas

Consolidated Edison Company of New York, Inc. (CECONY’s) strategy for public safety risk mitigation includes the elements of prevention, enhanced detection, and best in class response. Many of its initiatives are industry leading and on the cutting edge of technology.

Prevention

The Company continues to significantly invest in its main replacement program to remove cast iron and unprotected steel gas mains from its inventory. The Company has replaced 448 miles of such mains in the last five years. Along with other enhanced quality measures, the Company requires 100% independent inspections of all plastic joints installed to confirm quality and compliance. Furthermore, the Company has a robust and proactive damage prevention program that promotes awareness in the contractor community and applies predictive analytics for additional contractor oversight before street work is performed near our critical facilities.

Detection

CECONY performs monthly gas leak surveys of its 4,300 mile gas distribution system, far in excess of the traditional annual survey preformed in the industry. The frequency of these surveys allows it to detect leaks in its system as they occur, so that repair can be scheduled in a timely manner. Additionally, the Company has developed first of its kind natural gas detectors integrated with our advanced metering infrastructure. These detectors automatically notify the Gas Emergency Response Center of potential public safety emergencies that require immediate attention. We piloted these detectors in 2018 and have installed over 85,000 detectors thus far. The Company will install detectors in every remaining gas customer’s building over the next four years. Furthermore, CECONY has a comprehensive, multichannel, and multilingual campaign to educate customers and the public at large—an estimated 10 million people across New York City and Westchester County—about gas safety and the urgency of reporting gas leaks. We reach customers primarily through direct mailings, youth outreach efforts, advertising, digital initiatives (such as email campaigns, conEd.com and social media), and community events. We are also continuing our successful media campaign, Smell Gas, Act Fast, featuring videos and social media posts that inform customers on what to do if they smell gas. The videos are in English, Spanish, Chinese, and Korean.

Response

CECONY emergency response performance is best-in-class. In 2021, the Company responded to gas leaks across the system within 30 minutes, 96% of the time. Furthermore, our close relationship with the Fire Department of New York and Westchester County Emergency Services has ensured that every event is responded to with the utmost urgency and is mitigated quickly. In 2019, CECONY worked with Westchester County Department of Emergency Services to build a new hands-on gas leak emergency training facility for local fire departments to aid in their ability to respond to natural gas leaks effectively and safely.

Orange & Rockland

We have continued our focus on enhancing public safety by modernizing our gas delivery system. Investments to replace leak-prone pipe, primarily unprotected steel and gas mains, have resulted in fewer incoming outside leaks. In 2021, we replaced more than 22 miles of gas mains.

We quickly respond to gas odor and carbon monoxide calls, and in 2021 we responded to more than 91% of calls in 30 minutes.

By providing education to and direct oversight of those performing excavation work near our gas system, we continued to see good performance relative to third-party damages to our gas system. We continue to perform gas leak patrols of our distribution system and have kept the number of open leaks low throughout the year.

We continued to perform internal corrosion inspections and strategically deployed AMI-enabled, natural gas detectors in the territory.

O&R has a comprehensive campaign to educate customers and the public at large about gas safety and the urgency of reporting gas leaks. We reach customers primarily through direct mailings, advertising, digital initiatives, and community events.

Steam

Consolidated Edison Company of New York, Inc. (CECONY) continues to apply its prevent, detect, and respond risk mitigation strategy to have a deliberate focus on public safety. Many of these initiatives are industry leading and on the cutting edge of technology. For the “prevent” element of the strategy, CECONY continues significant investments in its steam system assessment and main inspection programs that use advanced data analytics to identify areas where specific infrastructure investment is needed. Starting in 2019, CECONY began the first generation of its assessment model and has inspected approximately 7,000 feet of steam main to date. CECONY also recently commissioned into service a full-scale computational fluid dynamic flow model known as, the Kongsberg model. This model simulates the flow of steam and condensate through the piping system using actual field conditions reported from various devices. This model is the first of its kind in the industry and can alert our Engineering/Operations teams to potential conditions that might increase the risk of a water hammer. The model will continue to be validated with field measurement devices over the next five years as it is gradually put into meaningful operations and planning use. Besides these preventive efforts, CECONY also has a robust monthly customer seminar program which educates our customers on how to use our steam service properly and safely in their buildings.

CECONY’s “detect” risk mitigation strategy includes performing weekly or bi-weekly (depending on the season) visual surveys of the 105-mile steam distribution system. CECONY also developed and is enhancing our remote monitoring system. The sensors associated with this system have the capability to detect defective steam traps, excessive water levels within our steam manholes, as well as the performance of drainage pumps. This system automatically notifies our Steam Troubleshoot Dispatch Center of potential public safety emergencies that require immediate attention. Additional improvements to the system are currently in the research and development stages with planned pilots scheduled for 2022.

CECONY’s “respond” risk mitigation strategy includes rapid response, repair, and partnership with external agencies. In 2021, CECONY responded to vapor conditions across the system within 45 minutes, 92.9% of the time. Steam Operations has consistently met this critical response time goal. These performances are also attributed to the close relationship between CECONY and many of the first responders, including Fire Department of New York City and the Department of Environmental Protection. Overall, CECONY conducted eleven (11) training sessions for public and emergency officials on how to properly respond to steam incidents. CECONY also met with various agencies throughout the year to familiarize them with the steam system, hazard recognition methods, and the Company’s internal emergency response procedures. CECONY also conducts drills to test its emergency response process/procedure for steam safety incidents as well as potential oil spill events.

Air Quality and Emissions

The majority (over 90%) of Consolidated Edison Company of New York, Inc.’s (CECONY’s) non-greenhouse gas (GHG) air emissions are generated by powering our steam system. One of the many characteristics that makes New York City unique is its reliance on steam, which provides space and hot water heating for large segments of Manhattan. The steam system customer base includes approximately 1,600 buildings throughout Manhattan equating to roughly 500 million square feet of prominent NYC real estate. Many historic landmark high-rise buildings and major cultural institutions are steam customers that would have significant difficulty converting to another heat source. Our challenge is to continue to provide efficient steam heat to our community while decarbonizing our system to meet the clean energy goals of our company and New York State.

Air Quality / Non-GHG Emissions

We’re proud to say that since 2005, we have reduced our direct emissions of nitrogen oxides (NO_x) by around 70% and sulfur dioxide (SO₂) by around 99%. We achieved large reductions in NO_x emissions by adding natural gas capability to several generating units at our steam plants. We also installed emissions-reducing controls such as low NOx burners. Increasing the proportion of cleaner-burning natural gas used to produce steam was a key factor in these emission reduction efforts. Our steam stations comply with New York State NO_x limits, and stations monitor NO_x targets throughout the year to meet these limits. We have also drastically reduced our SO₂ emissions by using predominantly natural gas and low-sulfur fuels. Sixty percent of CECONY’s annual steam production comes from co-generation, which reuses waste heat from boilers or gas turbines to produce additional energy. This efficient use of waste heat, in addition to advanced pollution controls on some of CECONY’s units, also helps to reduce the per-unit non-GHG emissions such as NO_x.

While we predominantly use natural gas for steam and electricity production (over 99% of the fuel used in our steam and electric generating units in 2021 was natural gas), we retain backup fuel sources to maintain reliability during periods of natural gas-system limitations. No. 4 oil and kerosene are the backup fuels currently used at our steam and electric generating stations. By the end of 2024, all generating units that use No. 4 oil will be fully transitioned to No. 2 oil, which is lighter and has a lower concentration of criteria pollutants. No. 2 oil also aligns with a New York City mandate aimed at reducing local air pollution by requiring steam and electric generating facilities to cease the use of No. 4 oil in boilers by January 1, 2025.

Over its 140 years of operation, the CECONY steam system has continued to evolve its fuels from using coal as a fuel source, to heavy fuel oils, and currently to natural gas. One of our most prominent challenges in the coming decades will be adapting our steam system for its next evolution to become a significant factor in the decarbonized clean energy future. What alternative fuels and technologies will come next, and how will we incorporate them into our steam system? Our engineers are working on it. We’re looking forward to keeping our community and stakeholders abreast of our progress toward a net-zero-emissions future.

Non-GHG EmissionsNitrogen Oxides (NO_x) & Sulfur Dioxide (SO₂)

GHG Emissions Reductions

In 2019, New York State enacted the Climate Leadership and Community Protection Act (CLCPA) that established a goal that 70 percent of the electricity procured by load serving entities regulated by the New York State Public Service Commission (NYSPSC) be produced by renewable energy systems by 2030. And it requires the statewide electrical system to have zero emissions by 2040. In addition, the law establishes a Climate Action Council to recommend measures to attain the law’s greenhouse gas (GHG) limits, including measures to reduce emissions by displacing fossil-fuel fired electricity with renewable electricity or by implementing energy efficiency measures to achieve an 85% reduction of GHG emissions by 2050. In support of the State goals, Con Edison is committed to leading and delivering the transition to a clean energy future, through our updated Clean Energy Commitment. We are committed to building a resilient, 22nd Century electric grid that delivers 100% clean energy by 2040. We are aiming for net-zero Scope 1 Emissions by 2040, by decarbonizing our steam system and other company operations and reducing our fugitive methane emissions from our natural gas delivery system to net zero by 2040.

Our Energy Vision is to take a leadership role in the delivery of a clean energy future for our customers. We will do that by investing in, building, and operating reliable, resilient, and innovative energy infrastructure, advancing electrification of heating and transportation, and aggressively transitioning away from fossil fuels to a net-zero economy by 2050. To achieve our vision, we are committed to reducing our carbon footprint. We firmly support efforts by local, state, and federal agencies to reduce greenhouse gas emissions. We have reduced our carbon emissions by 53% (39.9 million metric tons of CO2 equivalent) since 2005 – equal to taking more than 500,000 vehicles off the road.

Con Edison recognizes the international standard for delineating emission sources into various categories of “scope” based on whether the company was directly responsible, indirectly responsible, or facilitator to the emission of greenhouse gasses. These categories are roughly broken into 3 scopes of emissions:

• Scope 1 emissions are those greenhouse gases emitted into the atmosphere by Company-owned assets. As with our non-GHG emissions, the majority of Con Edison’s Scope 1 GHG emissions (88%) result from CECONY’s operation of steam, electric, and co-generation plants, where fossil fuel is combusted, and greenhouse gases are emitted as a result. Additionally, fugitive Scope 1 emissions occur when pressurized equipment and infrastructure containing a greenhouse gas has a controlled or uncontrolled emission into the atmosphere. Fugitive Scope 1 emissions are principally composed of SF₆ from electric distribution equipment (2%), and methane (CH₄) from the Company’s natural gas distribution system (7% CECONY; 1% Orange & Rockland). The Company’s vehicle fleet is also a source, albeit relatively small (1%) for Scope 1 emissions.

• Scope 2 emissions are generated when Company assets indirectly contribute to Scope 1 greenhouse gas emissions from a non-affiliated entity. The consumption of electrical power at Company facilities, for example, necessitates that an upstream power generator combust fossil fuels to generate electricity, which, in turn, leads to greenhouse gas emissions. For Con Edison, nearly all Scope 2 emissions originate as electric consumption by Company-owned assets, including losses in electric distribution and transmission (“T&D losses”), and metered consumption of electric power at Company-owned facilities.
• Scope 3 emissions represent indirect emissions generated as a result of customers using Con Edison’s services. The vast majority of Con Edison’s Scope 3 emissions stem from the delivery of electricity and gas to our customers, which results in greenhouse gas emissions from either the generators supplying the electricity, or the customers’ combustion of gas. A second, and more difficult to calculate component to Con Edison’s Scope 3 emissions include the emissions resulting from the Company’s supply chain; specifically, those emissions resulting from the production of material, transportation, and labor associated for all Company activities.

The chart below presents the proportion of our Scope 1, 2 and 3 emissions, focusing on the Scope 3 emissions from the delivery to and use of electricity and gas by our customers (not including emissions associated with our supply chain or methane emissions “upstream” from the production and delivery of natural gas to the “city gate”).  Our Scope 1 emissions comprised largely of steam, electric, and co-generation plant operations make up 8% of our total GHG emissions, while Scope 2 emissions associated with T&D losses comprise 4%.  The majority (88%) of our total GHG emissions are Scope 3, nearly evenly split between the emissions associated with generating the electricity (45%) and customer combustion of natural gas (43%) that we deliver. 

Steam Environmental Efforts

We provide customers with U.S. Food and Drug Administration (FDA)-quality steam, of which 60% is co-generated. Because the steam is co-generated, customers can apply for points toward their Leadership in Energy and Environmental Design (LEED) certification and increase their score in Energy Star’s portfolio manager. Our co-generated steam reduces carbon emissions by approximately 25% of what would have been otherwise emitted through traditional boilers—that is equal to removing approximately 200,000 vehicles from the road every year.

Our customers also benefit from the advantages of a centralized district steam system which reduces onsite emissions from boilers in customer buildings. These centralized investments benefit all customer buildings. The ability of the district system to aggregate a wide variety of customer load profiles also allows for a higher average efficiency than what can be achieved at a single location. All these benefits are reflected in the most recent NYC Local Law 97, where our district steam system was identified as the lowest greenhouse gas emitting energy source per unit of energy delivered.

In alignment with New York City’s and State’s commitments to significantly reduce greenhouse gases by 2050, we are evaluating opportunities to reduce our environmental footprint. We acknowledge that business as usual is not and cannot be the way of the future to achieve these goals, which is why we have recently updated our Clean Energy Commitment with a more detailed identification of the initiatives we are pursuing. As part of this update, we have pledged to reduce the Company’s emissions with a focus on decarbonizing our steam operations.

We are taking a more forward-thinking approach, conducting research, and evaluating opportunities for more efficient generation and customer programs, while using existing and emerging technologies. To continue supporting our customers in a changing environment, Steam Operations has been proactive in several efforts, such as benchmarking with district steam systems in other cities that are using their district energy networks to achieve their carbon reduction goals. Additionally, we have also been an active member in discussions and studies as regulations for the city and state plans evolve.

Steam Operations has also established an internal cross-functional team dedicated to evaluating the feasibility of carbon-reduction technologies and strategies with the existing steam system. Technologies include alternative fuel sources, carbon capture, production via electric boilers with renewable energy, expanding and/or converting to hot water systems, wasted heat recovery sources, and other emission reduction technologies. In the next few years, we hope to implement demonstration projects for the technologies that seem most promising for carbon-free steam generation.

Reduction of SF₆ Emissions

In accordance with a 1999 memorandum of understanding between the U.S. Environmental Protection Agency (EPA) and Consolidated Edison Company of New York, Inc. (CECONY), we agreed to reduce our emissions of SF₆ gas (sulfur hexafluoride) by 5% annually from our 1996 baseline. In 2021, we released about 98% less SF₆ than in 1996, well ahead of our commitment to the EPA. SF₆ is a nontoxic, nonflammable greenhouse gas, with a warming potential more than 22,000 times higher than carbon dioxide, that can remain in the atmosphere for up to 3,200 years. It is a highly efficient insulating medium and arc extinguisher used throughout the energy industry in different types of equipment, including high-voltage breakers and gas-insulated switchgear.

Currently there is no viable alternative to SF₆ for high voltage equipment like that in CECONY’s electric system. There is research underway, particularly in Europe, to find alternative gases, but there are no viable substitutes that would replace the SF₆ in existing equipment. Con Edison is a member of Electric Power Research Institute (EPRI) where we benchmark and stay informed of industry updates. EPRI is supporting research around alternative gases as well. Some utilities in the United States have replaced SF₆-containing equipment, but those programs have so far been limited to lower voltage classes of equipment than used on CECONY’s system. Therefore, at the present time, limiting emissions is the best strategy for contributing to a healthier environment and helping to reduce global warming.

While we have greatly reduced our emissions in the past decade, we continue to reduce our remaining emissions. We established a five-year plan at the start of 2020 to reduce SF₆ emissions by 500 pounds annually. This is a rate of more than five percent annually from current levels and we have so far achieved five percent annual reductions in 2020 and 2021.

To reduce SF₆ emissions, we use programs developed by a dedicated team that established a process to address leaking equipment in a timely matter. For example, a team of specially-train technicians is constantly monitoring the emissions of all equipment daily using a tracking software program to enable quick and efficient detection and repair of SF₆-containing equipment. The team also uses cameras designed to detect SF₆ to monitor equipment in operation. We then follow best management practices, including innovative new leak-sealing techniques to make the necessary repairs, as well as handling the gas properly with minimal emissions.

We also have several targeted programs to retire or replace older SF₆ equipment with new SF₆-containing equipment, including circuit breakers, automatic ground switches and gas-insulated switchgear. New SF₆-containing equipment used in replacements typically has a much lower leakage rate than earlier technologies, with new equipment warranted to a leakage rate of less than 0.5%.

Waste Management

Solid Waste

Consolidated Edison Company of New York, Inc. (CECONY) and Orange & Rockland Utilities, Inc. (O&R) continue to minimize waste by emphasizing an end-of-life mindset during job planning that considers minimizing future waste streams during each phase of work, including project and process design, purchasing, and waste disposal. This is an integral part of our process to meet waste reduction goals.

The solid waste recycling programs at CECONY and O&R are supported by corporate policies aimed at reducing the non-hazardous waste we produce. The vast majority of our solid waste streams are recycled or auctioned, including retired fleet vehicles, forklifts, tool carts, old cables, streetlights, reflectors, meters, and paper products. CECONY requires source separation of a variety of waste streams, including cable, paper, wood, plastic and certain metals.

Last year, to further enhance our solid waste management program, we introduced a new waste characterization process to help prevent over- and under-characterization of hazardous waste. The new process is now codified in a corporate procedure. Employees must complete a “checklist” that demonstrates the reasoning (such as a lab test) for the classification of any collected waste. This process will help categorize all waste correctly and will likely reduce the amount of waste sent to hazardous waste disposal facilities due to mischaracterization.

Hazardous Waste

In any given year, emergency work impacts the volume of hazardous waste we encounter at Con Edison, making it difficult to set annual hazardous waste reduction goals. Lead largely from urban runoff can be found in the manholes and transformer vaults associated with our underground electric system. Over the past 24 years, we’ve drastically reduced the volume of hazardous waste generated through our lead waste stabilization process. In 1998, the New York State Department of Environmental Conservation (NYSDEC) approved CECONY’s request to develop a process that stabilizes lead waste that would otherwise be considered hazardous and renders it non-hazardous. The process was first implemented in the early 2000s and we confirm the efficacy of our lead waste stabilization through sampling before disposing of it. In 2021, our processes reduced our hazardous waste stream by more than 31,000 tons.

Radioactive Waste

At Con Edison, we recognize that the management and disposal of radioactive waste is an important issue. While we do not generate radioactive waste, we do have procedures in place that provide guidelines for its management and disposal so that we are prepared should we encounter this type of waste. We maintain a Radiation Safety Officer as well as Radioactive Waste Material subject matter expert on staff to address management and disposal matters.

Emerging Waste Streams

Con Edison is working with regulators and industry leaders to plan for emerging waste streams associated with renewable technologies such as solar panels, electric vehicle batteries, and wind turbines.

Habitat & Biodiversity

There has never been a more important time to protect nature’s assets than now. Biological diversity or biodiversity refers to the wide variety of living species on Earth. Protecting biodiversity increases ecosystems’ resilience to the increasing shocks brought on by extreme weather and climate change. In many parts of our service territory, we are surrounded by or near lush woodlands, productive wetlands, diverse wildlife, and integrated waterways that create a truly unique environment for the millions of people and species who live here. Some of the main drivers of biodiversity loss are land use changes, development, climate change, pollution, and invasive species.

To help combat biodiversity loss, we are developing a sustainable business strategy that aims to preserve and enhance biodiversity. Our strategy will be guided by the following high-level objectives:

1. Strengthening our corporate governance on biodiversity
2. Assessing biodiversity impacts across our company’s value chain
3. Increasing our performance by implementing action plans with mitigation targets
4. Monitoring and reporting on our biodiversity efforts using globally recognized metrics

We are committed to evaluating ways to incorporate biodiversity protection measures through all aspects of our business. Below, we outline a few mitigation measures and initiatives Con Edison currently uses to support our goals of promoting and protecting our natural environment. 

• We strive to incorporate sustainable design engineering to systematically identify and mitigate environmental concerns during project planning and construction.
• Our workers and contractors work under the same best-management practice hierarchy during construction and operations. Our environmental procedures have all been independently audited and certified by the ISO-14001 environmental management standards.
• Our Strategic Partnerships program funds multiple nonprofit organizations that address local environmental threats, further the preservation of biodiversity, and enhance ecosystem services.

Comprehensive Vegetation Management

To power our vast service territory, Consolidated Edison Company of New York, Inc. (CECONY) and Orange & Rockland, Inc. (O&R) manage more than 8,100 acres of land under Overhead Transmission Lines to provide reliable and safe service for our customers. We use an industry-leading vegetation management program that follows best management practices developed in coordination with the Electric Power Research Institute. We encourage biological diversity along the Transmission Line Right-of-Ways by protecting native plants and threatened and endangered species with the assistance of trained experts, selectively pruning or cutting undesirable species, and increasing public awareness of threatened and endangered species through community partnerships.

For the last 13 years, CECONY and O&R have been recognized as a “Tree Line USA” utility by the Arbor Day Foundation for utilizing best practices in utility arboriculture. The award acknowledges our national leadership in promoting the dual goals of providing safe, reliable electric service and preserving abundant, healthy trees across our service territory. Our efforts to train our workers in quality tree-care practices and educate customers to plant appropriate trees near utility lines result in a healthier, more sustainable relationship between trees and our electrical utility lines year after year. Our year-round vegetation management program involves safely managing trees near 1,400 miles of distribution lines, making it an integral part of providing reliable service while enhancing the urban forest in which we live.

Biodiversity Initiatives

O&R’s Forestburgh Conference Center Native Meadow Enhancement Project 

Over the last two years, we identified a native pollinator enhancement opportunity at O&R’s Forestburgh Conference Center, where staff had been mowing a two-acre field. Mowing was stopped and eight integral species of native plants were planted, totaling over 3,000 plugs that returned the meadow to its natural state. These native species will bloom throughout the year and are particularly valuable to local pollinators. Our species list includes Common Milkweed, Wild Bergamot, and Smooth Blue Aster. As the meadow developed, supplemental native buds were planted to boost the diversity and abundance of the meadow. Bird houses and solitary bee homes were installed throughout the area to provide shelter and support reproduction. O&R created a vegetable garden adjacent to the new meadow for a farm-to-table dining program. The native meadow enhancement project was a pilot task that will shape our planning for more biodiversity protection and native habitat enhancement. The project also supports the New York State Pollinator Protection Plan, one of the state’s main biodiversity protection programs.  

Protecting Aquatic Life at the East River Generating Station

The East River Generating Station is the only one of our steam stations with a cooling water intake structure (CWIS). This system draws water from the East River into the plant to cool two of our electricity-producing units. Con Edison uses the best technology available to minimize the impact on marine life as water is pumped in and out of the station. The river water entering the station flows through at least four traveling screens that prevent entrained fish and other marine life from entering the station. Marine life that is caught by the traveling screens either remains stationary against the screens or is held in a trough at the bottom of each screen. The traveling screens move upward on an elevator-like system. At the top, a gentle spray removes fish and other marine life from the screens, after which they are returned to the river via an aqueduct that deposits them away from the station’s intake pumps. Installation of this CWIS system and biological monitoring was developed in coordination with the Electric Power Research Institute and exceeds all state regulations and federal law requirements, protecting marine wildlife while supplying safe, reliable steam heat to New York City.

Con Edison Transmission: Sustainable Design

Con Edison Transmission’s (CET) commitment to minimizing the environmental and wildlife impacts of its projects is demonstrated by its most recently proposed project, Clean Link New Jersey. Clean Link New Jersey uses an underground power corridor design to link offshore wind power to New Jersey’s electric transmission system. This use of a single power corridor and underground direct current cable will result in a smaller project footprint, reducing environmental disturbances and impact to wildlife along the coastline and lessening the impact to onshore communities. When designing new projects, CET considers the onshore and offshore environments and employs technology to reduce project impacts to the environment and the public. This focus in the design process on sustainability enables CET to propose projects with reduced impact to natural habitat while preparing our communities to embrace a clean energy future.

Clean Energy Businesses: Supporting Biodiversity Land Management

Con Edison’s competitive Clean Energy Businesses (CEBs) have robust programs in place to incorporate environmental stewardship into our business planning, which in turn help promote biodiversity in the areas across the country where we work. During the development phase of new projects, risks to threatened and endangered species are always evaluated and considered. In cases where a project would present significant risk to high biodiversity value areas, we will consider alternative project locations with no or fewer impacts. For other projects, investments are made to protect environmentally-sensitive areas and wildlife in compliance with local, state, and federal environmental regulations.

For instance, at the Campbell County Wind Farm in South Dakota, we were able to place about 90% of the wind turbines on farmland to avoid habitat loss for grassland species. To compensate for the seven turbines that were placed in grassland areas, we secured 200 acres of perpetual grassland easements in Campbell County, which were donated as offsets. One of the species found in the Campbell County area is the Whooping Crane, which is a federally listed endangered species. Due to the location of this project within the Whooping Crane migration pathway, we monitor Whooping Crane migration and seasonal flights, allowing our operations to adjust turbines as needed to help prevent mortalities. We also consult with the U.S. Fish and Wildlife Service to provide protections for the Bald Eagle and Golden Eagle at this facility through mitigation and monitoring efforts.

In our solar portfolio, we have multiple projects where the protection of threatened and endangered species has been an integral part of planning and operating these facilities. For instance at Panoche Valley Solar, Lost Hills, and Copper Mountain, we monitor threatened and endangered species and have implemented extensive mitigation and conservation measures to protect these species and their habitats. At Panoche Valley Solar in California, we secured the permanent protection and management of over 25,000 acres of habitat – over 15 times the acreage of our solar field. Prior to and during the construction of the facility, hundreds of Giant Kangaroo Rats, which are a California endangered species, were successfully relocated to non-project space to maintain and preserve this species. The San Joaquin Kit Fox, a California threatened species that occurs in this area, is currently being monitored by local researchers at California State University in order to better understand habitat and species behavior around the project site. During the construction phase of the Copper Mountain Solar project in Clark County, Nevada, we supported the Clark County Desert Conservation Program to help relocate the Desert Tortoise, another federally-listed threatened species that we took special care to protect.

During construction and ongoing operations, the CEBs utilize best management practices to minimize disturbances to habitat and species. We provide environmental training to our workers that is specific to local species so that those working on a project are informed of the biodiversity measures for the site. We engage in land management practices to monitor and repair areas where storm-related erosion could impact nearby waterways, use seed mixes that enhance pollinator plant species, lower speed limits, and perform regular inspections for species prior to engaging in activities.

At Con Edison’s Clean Energy Businesses, we approach biodiversity both proactively, by working with stakeholders when we begin a new project, and consistently as we maintain a completed facility. It is critical to us that our efforts to build a clean energy future are carried out in a manner that protects and nurtures the diverse animal and plant life that call the land surrounding our sites their home.

Remediation and Reuse of Former Utility Property

Enabling the Responsible Remediation, Repurposing and Redevelopment of Former Utility Facilities and Real Properties

Consolidated Edison Company of New York, Inc. (CECONY) and Orange & Rockland Utilities, Inc. (O&R) (collectively and individually referred to as the “Company” below) formerly owned, own, or manage numerous real properties in the greater New York City area. Among these are former electric generation and distribution facilities and former Manufactured Gas Plants (MGPs), that were operated as early as the mid-1800s until the mid-twentieth century to convert coal to gas for lighting, cooking, and other uses prior to the widespread use of electricity and the advent of natural gas pipelines. Due to changes in generation technology, demand, and user distribution, a facility may need to be relocated, consolidated with other operations, or retired. Properties that have been consolidated or are no longer serving a utility function are available either for re-use for another utility function within the Company or become surplus. Surplus property is available to be divested so that it can serve a new productive function in the community in which it is located. Many former properties, particularly the former MGPs, were divested decades ago prior to the modern era of environmental cleanup standards and regulations.

These owned or formerly-owned utility properties are investigated and remediated as necessary by a dedicated staff of scientists, engineers, and technical experts (the Remediation Group), that has been in place since the early 1990s. The work performed by the Remediation Group has matured into a comprehensive Site Investigation and Remediation (SIR) program that includes a community outreach program. The SIR program staff lead the Company’s efforts to investigate these sites for the presence of historic operations impacts, and if necessary, undertake remediation, as applicable, in close coordination with federal, state, and local regulators. The Company develops comprehensive work plans to complete investigations and remediation in accordance with applicable laws, regulations, and cleanup standards. Where possible, we seek to coordinate activities with third-party redevelopment plans to achieve efficient remedies that repurpose the sites for productive use.

To prepare for the sale of real property that is owned by the Company but no longer needed, the Company performs certain activities, including an environmental assessment or investigation, the implementation of remedial action if deemed necessary, and ultimately, formal reclassification to “non-utility” status. The environmental assessment is typically conducted by our SIR program staff and follows a multi-step process. Initially, data and information are obtained about the history of a property prior to ownership and during the Company’s development and operations on the property. Due to the long industrial history of these parcels, the next stage of assessment entails site investigation and serves to determine the current environmental conditions. The findings from the assessment or investigation are used to determine what, if any, remedial action may be necessary to render the property suitable for sale. These determinations are made based on the intended future use of the property and applicable regulatory requirements.

Reclassification, Sale and Redevelopment Case Study: Former Kent Avenue Generating Station

An example of reclassifying and selling a property for redevelopment is the parcel at 500 Kent Avenue located in the Williamsburg section of Brooklyn, NY. The parcel consisted of a single tax lot that covers approximately 2.65 acres and included approximately 600 linear feet of waterfront. The property housed power generating facilities dating back to 1906 and, after its acquisition in 1962, CECONY continued to use it for this purpose. By 1999, electric generation operations ceased, and the property was reclassified as non-utility. Subsequently, CECONY commenced demolition of the generating station structures and performed an initial site investigation.

By 2009, CECONY had completed demolition of all the building structures and environmental investigations at the property. In 2010, in response to the detection of residues from a former MGP that operated on the southern portion of the property between 1873 and around 1935 (when it was owned by another utility), CECONY amended its 2002 Voluntary Cleanup Agreement (VCA) with the New York State Department of Environmental Conservation (the DEC) to include the investigation and remediation of the Kent Avenue property. CECONY completed remediation of the property in accordance with the terms of the VCA in February 2014. The DEC issued a No Further Action determination in April 2015, acknowledging that the property could be returned “to productive use of benefit to the entire community.” CECONY then put the property up for sale.

After identifying a prospective purchaser, and pursuant to Section 70 of the New York Public Service Law, CECONY filed a request for authorization from the New York State Public Service Commission (the PSC) to finalize the sale and transfer the property. The PSC granted the authorization and in 2019 CECONY sold the Kent Avenue property, making it available for commercial use and a contributing resource for economic development of the Brooklyn waterfront.

Electric Vehicles

Recognizing that the transportation sector is one of the largest sources of carbon emissions in our service area and our nation, we are taking the lead in supporting the acceleration of electric vehicle (EV) adoption by our customers. Consolidated Edison Company of New York, Inc. (CECONY) is making significant infrastructure investments to facilitate installation of thousands of EV chargers across our service area, and we offer other incentive programs to EV station operators and drivers to ease the impact of EVs on the grid and make transition to EVs more affordable.

We know that access to EV charging is a leading barrier to our customers choosing to purchase EVs. In order to help alleviate these concerns, in 2020 CECONY launched our PowerReady EV infrastructure incentive program to support the development of widespread and visible charging stations at diverse locations across our service area such as parking lots, retail locations, apartment buildings, and workplaces. This program for cars and other light duty motor vehicles is one of the largest utility programs targeting the EV charging industry in the country. It will provide up to $252 million of customer incentives with a goal to support the connection of about 20,000 EV charging plugs to the grid through 2025. In 2021, as part of the program, CECONY facilitated the build-out of the largest publicly accessible universal charging hub in the Americas in Brooklyn. The Company’s efforts have also created a high level of market interest with a charger application queue level that we anticipate will enable CECONY to achieve the 2025 target significantly ahead of schedule. In 2020, CECONY also launched a pilot incentive program to support electrification of larger fleet vehicles such as school buses, transit buses, and delivery trucks. Finally, in 2020 CECONY expanded our SmartCharge NY program, which continues to be one of the most successful-managed charging programs in the world and provides financial rewards to participating customers across all vehicle types in our service area, when they charge outside of the peak consumption periods on the grid. The year 2021 saw continued gains in off peak EV charging, with enrollment pushing to over 5,000 passenger cars participating in the program. 

Additionally, CECONY is working on two active demonstration projects that will help improve access to and viability of clean transportation. In conjunction with New York City Department of Transportation, we will install over 100 publicly accessible curbside charging posts across all five boroughs, with over 80 already commissioned in 2021, to increase access to EV charging and test customer acceptance of chargers on the streets in their community. CECONY also has an operational vehicle-to-grid (V2G) school bus initiative with the White Plains school district. The V2G initiative will be completed in early 2022, with findings expected to be presented publicly soon thereafter. The electric school buses in the White Plains school district transport school children during the school year. In the summer, the buses are also being tested as grid support assets when the students are on holiday and grid needs are greatest.

In support of our Clean Energy Commitment, 100% of new light-duty vehicles being purchased by CECONY and Orange & Rockland (O&R) are EVs. Through the retirement of existing fossil fuel vehicles, our goal is that 80% of our light-duty fleet will be electrified by 2030 and 100% by 2035. We are also pursuing, through Research and Development, alternative technologies to reduce fossil fuels for medium- and heavy-duty vehicles.

Oil-to-Gas Conversions

In 2021 CECONY converted 64 buildings from heavy heating oil to gas. Since the start of our conversion program in 2011, we have converted almost 4,700 large buildings burning heavy heating oil; we also converted approximately 4,000 customers from No. 2 grade oil. The company’s program kept more than 589 tons of fine particulate matter from the air, which has had a significant impact on air quality within the New York City portion of our service territory. While we have completed this program, we continue to see customer-driven requests in converting from oil of all grades, especially due to the requirement under New York City law to eliminate the use of No. 4 grade oil in boilers by January 1, 2030. In 2019, CECONY stopped accepting applications for new natural gas connections in most of our Westchester service area. Currently, for customers who have requested new natural gas service or upgrades, CECONY will continue to honor these requests in line with applicable regulatory requirements while also offering incentives to customers to install non-pipe solutions and alternatives, such as heat pumps.  

Orange & Rockland, Inc. (O&R) concluded its gas expansion program in 2019. Currently, for customers who have requested new natural gas service or upgrades, O&R will continue to honor these requests in line with applicable regulatory requirements while also offering incentives to customers to install non-pipe solutions and alternatives, such as heat pumps. In 2021, O&R converted 70 customers from various grades of heating oil to natural gas and helped to install 448 heat pumps in the service territory.

Con Edison, Inc. Utility Customer Conversions to Gas

Water Conservation and Water Quality

New York City is fortunate to be located in a water-rich environment. The city’s water is supplied from three upstate reservoir systems (Delaware, Catskill, and Croton) that have a combined capacity of 550 billion gallons of water, according to the New York City Department of Environmental Protection (NYCDEP). The New York City Panel on Climate Change’s 2019 report predicts that precipitation will increase in the coming years, including a higher rate of extreme precipitation events. Unlike many areas of the United States today, water management in our region is not about scarcity. Regardless, we strive to reduce our water consumption, and water conservation efforts will continue to be factored into our business planning.

The vast majority of Consolidated Edison Company of New York, Inc.’s (CECONY) water footprint is converted into steam, which is an integral source of clean, efficient energy. Steam is distributed to our customers for a variety of uses, such as heat, hot water, air conditioning, sterilization, and food processing. As one of NYCDEP’s largest water customers, we are committed to our stakeholders and the environment to strive to minimize the amount of water used to produce steam. We aim to reduce our water footprint by improving the efficiency of our steam system and implementing water treatment system enhancements.

Our water usage has decreased by more than 20% over the past decade. This is due in part to a decrease in demand for steam and also due to several major technology upgrades that have reduced our water consumption. At the East River Generating Station, we recently installed ultrafiltration (UF) and reverse-osmosis (RO) filtration systems in two of our generating units. These additional filtration systems add two initial steps to the water filtration process. Before upgrading to include this pre-filtration system, a considerable amount of water was used to clean the original filtration system at least once daily. Now, our UF and RO filtration systems efficiently remove minerals and debris from the water early in the purification process, reducing demineralizer cleanings to two or three a month. This upgrade has enabled us to reduce our overall water consumption and use water more efficiently. We are now in the process of updating the pre-filtration process in two additional units at the station and are already seeing savings of approximately 1 million gallons of water each month. By the end of 2022, we aim to complete these upgrades.

Con Edison Steam Operations - DEP Municipal Water Use(billion gallons)

ISO Certification

The Con Edison Environmental Management System (EMS) is certified to the International Organization for Standardization (ISO) 14001:2015 standard. The purpose of the ISO 14001:2015 standard is to provide a framework and systematic approach to environmental management. ISO 14001:2015 requires a commitment from all levels of the Con Edison organization, led by the top management, to environmental protection through pollution prevention and continuous improvement. ISO 14001 certification gives Con Edison and their stakeholders a means of verification that the EMS is operating at a world-class standard.

Con Edison through implementation of an ISO 14001 certified EMS is committed to:

• Improving safety and environmental performance
• Strengthening regulatory compliance
• Enhancing relationships with our stakeholders
• Identifying and reducing significant EH&S risk potential
• Promoting wise and effective use of natural resources

We have, over 19 consecutive years, maintained our ISO 14001 certification through a rigorous third-party certification process. In 2017, our certification was upgraded from ISO 14001:2004 to the new ISO 14001:2015 standard by a two-week audit conducted by Intertek Testing Services NA, a third-party auditor. We received our re-certification in 2020.

Our chemical laboratory operations are third party certified to the ISO/IEC 17025:2017, general requirements for the competence of testing and calibration laboratories standard.

Cyber Security & Data Privacy

New technology brings new challenges, and cybersecurity has been identified as a key enterprise risk for the company. Our information security group has a defense in depth approach, deploying cybersecurity tools to identify and prevent attacks both externally and internally. The cybersecurity program is aligned with the NIST Cybersecurity Framework and is embedded in all technology initiatives. The company complies with regulatory cybersecurity requirements and takes a leading posture in the development of new standards, regulations, and industry initiatives. We work with local, state, and federal agencies, as well as our colleagues in the energy business, to identify and employ the latest technological tools to protect our customers and our equipment. We collaborate with these partners to share threat information and best practices, and conduct joint cybersecurity drills. Internally, we provide an annual presentation and monthly updates on cybersecurity risks to the Board, and the Audit Committee reviews more in-depth cybersecurity matters semi-annually.

With the increasing threat of cybercrime, we continue to strengthen our cyber security and data-protection efforts. They include continuous monitoring, vulnerability assessments, employee education, regular drills, and phishing tests.

The company continues to advance data privacy through monitoring regulated activities related to personal data collection, use, and sharing; and maintaining compliance with applicable data privacy laws and privacy policies. Our well-established privacy team continues to guide IT and key business teams employing Privacy by Design principles to contemplate and mitigate data privacy risks at the time of system or process design and implementation. The privacy team is responsible for the Company’s appropriate handling of customer and employee personal information and regularly trains and educates teams across the organization to maintain awareness and careful attention to protective measures. Additionally, the company recently established the role of Chief Privacy Officer in recognition of the growing importance of privacy to customers, regulators, and stakeholders. The company remains focused on the evolving data privacy regulatory landscape, taking proactive measures and building forward-looking tools and processes in anticipation of more individual-centered business requirements.

To hear more about our cybersecurity program and other topics, visit https://soundcloud.com/con-edison

Ethical Business Practices

Our strong business ethics are founded on our corporate values and help us achieve our three priorities—safety, operational excellence, and customer experience. We are committed to conducting business with the highest ethical standards. How we do business, how we treat our customers and business partners, and how we treat one another all contribute to how we are perceived by others and, ultimately, to our long-term viability. Our Values in Action Advisor network of 130 employees and our Business Ethics Council with 15 members assist the organization in maintaining a culture of integrity.

Our corporate values are at the heart of our Standards of Business Conduct. Our Standards of Business Conduct explain the behaviors expected of the employees of Con Edison and reinforce our corporate values. Our individual commitment to support and uphold them in every aspect of our work is the foundation of our culture of integrity. Based on the laws, regulations, and company policies we need to know and follow, our standards serve as a framework for ethical decision-making and direct us to the appropriate resources when we need help or more information. For more information, please read our Standards of Business Conduct (coned.com)

Training

Storytelling is a powerful tool that makes training more interesting and memorable. The 2021 Standards of Business Conduct training featured videos of our colleagues telling their personal ethics-related stories and learnings on select topics from the Standards of Business Conduct.

In 2021, Business Ethics & Compliance raised awareness of ethics-related resources with an online quiz developed to test employees’ knowledge of ethics and compliance, fraud prevention, and cyber security. Approximately 950 of our colleagues participated.

Additionally in 2021, Business Ethics & Compliance distributed several new engagement tools and resources:

• Launched our Ethics Zone series of microlearning videos to help mitigate identified risks to the company with our first videos on cyber awareness and avoiding conflicts of interest;
• Developed an Ethics App making it easier for colleagues to address questions and concerns; and
• Released a video about the Ethics Helpline and Ethics Investigation process.

Data Privacy

We are committed to securing the personal and private information entrusted to us by employees, customers, and others. To enhance our data privacy and protection efforts, we brought on board our first Chief Privacy Officer (CPO). The CPO is focused on building a strong privacy compliance program and addressing improvement opportunities identified in recent assessments.

Conflicts of Interest

Avoiding conflicts of interest (or the appearance of conflicts of interest) is essential to acting with integrity. In 2021, all employees of the Con Edison companies completed a Certificate of Disclosure providing information on potential conflicts of interest. Business Ethics & Compliance worked with our colleagues to create plans to reduce the risks from their disclosures.

Climate Resilience

In recent years, Consolidated Edison Company of New York, Inc. (“CECONY” or “the Company”) has adopted an ever more proactive, forward-looking approach to system resiliency to address increasingly severe weather due to climate change. After Superstorm Sandy, we upgraded our infrastructure to be resilient to a 100-year storm plus one foot of sea level rise. In 2019, we completed a multi-year Climate Change Vulnerability Study to understand local climate change projections, identify potential system vulnerabilities that could result from the changing climate, and explore potential adaptation options to protect our infrastructure.

In 2021, CECONY made progress toward strengthening our energy systems to address the adverse impacts of climate change and the potential for more extreme weather. We continue to change the way we do business to address climate change risks with the objective of maintaining safe and reliable service for the millions of people who rely on us for power. Our efforts included applying forecasting and design processes that more fully incorporate the expected future impacts of climate change. Our Climate Change Implementation Plan, filed with the New York State Public Service Commission in December 2020, guides the Company in identifying an adaptation strategy for climate resilience.

Our key 2021 climate change resilience accomplishments were:

1. Employed our governance structure to manage climate change risks and build resilience: Our executive level Climate Risk and Resilience Executive Committee served as a catalyzes for change management throughout the organization to focus on climate resilience. This effort was supported by key individuals within the Company and our Climate Change Risk and Resilience Group worked directly with decision makers throughout the Company on climate resilience, adaptation, and investment strategies.
2. Reviewed the Climate Change Planning and Design Guideline (“Guideline”): Our Climate Change Planning and Design Guideline reflects the best available climate science and aligns with regional benchmarks. The Guideline will help us consistently evaluate our system and operations. We continue to monitor and consider newly available climate information and climate policy changes as part of our ongoing work.
3. Adjustments to how we plan and design infrastructure for increasing climate change: By reviewing our specifications, procedures, and practices against anticipated changing climate conditions, we better understand how to proactively adapt our planning, operations, and emergency response. We have already made changes to address climate risks that support the resilience of our system and customers. New efforts include, for example, pilot programs to underground certain overhead segments of the electric distribution system to reduce vulnerability to climate impacts and accelerate select equipment replacements to counteract the aging effects of climate change on utility equipment.

We recognize that our approach needs to be flexible as more is learned about climate change impacts. Continued collaboration with our stakeholders will be key to our ability to continue to provide safe, reliable, and resilient energy to our customers in a changing climate.

For more information, please visit https://www.coned.com/resilience.

Core System Upgrades

The Advanced Meter Infrastructure (AMI) project consists of 5.3 million smart meters—comprised of roughly 4.0 million electric smart meters and 1.3 million gas devices—which are being deployed across our service territories and will result in significant environmental, operational, and customer benefits.

Smart meters put unprecedented control into the hands of our customers. With the Company’s updated website and digital customer experience, customers can see their energy usage in near real-time and make smarter, more informed decisions about managing their energy usage, controlling costs, and helping the environment.

Deployment of the communications network and smart meters began in 2017 and is on target to be substantially complete by the end of 2022. More than 20,000 communications network devices have been installed throughout the Company’s entire service area. In 2017, meter installations began in Staten Island, Westchester, and Rockland County and mass deployment has been completed in these areas as well as Orange and Sullivan Counties. Mass meter deployment continues in Manhattan, the Bronx and Queens.

To date, approximately 4.9 million devices have been installed. The AMI Operations Control Center has been staffed 24/7 to monitor the communications network, as well as the meters and gas modules connected to the network.

The AMI project team has worked closely with Gas Operations and the AMI vendor to develop a first-of-its-kind, battery-powered natural gas detector that is integrated with the smart meter communications network. The natural gas detectors are safety devices that monitor the atmosphere where Con Edison’s gas pipes enter our customers’ homes and buildings. They provide an alert when natural gas levels in that area indicate a potentially dangerous leak. Through the AMI communications network, the detectors send a wireless alert to Con Edison if a potential gas leak has been detected, allowing Con Edison and the local fire department to respond quickly. A pilot program to install 9,000 detectors began in October 2018 in parts of Westchester County and this pilot was extended into Manhattan in 2019. The pilot program has been completed and the Company began a multi-year program in September 2020 to deploy the natural gas detectors across our service territories.

Smart meter data provides CECONY and O&R with insight into outages and restoration, allowing us to see when a customer has power and to avoid sending a crew to a location where power has already been restored. These avoided “truck rolls” reduce costs as well as assist in our overall environmental goals by reducing CO2 emissions. In 2021, over 12,000 unnecessary truck rolls were avoided. The additional insight which smart meters provide regarding outages and restorations allows us to update how we address “nested” or “embedded” outages. These embedded outages are often not readily identified and are only found when we energize our electrical facilities. The AMI system can quickly notify operators of these conditions while enhancing the restoration communications that customers receive. Improvements in this area will continue over the next few years.

AMI also lets the Company operate the system at optimal voltages—known as conservation voltage optimization—reducing total energy consumption, as well as associated power-generation emissions. Analysis shows that information from the AMI system can reduce energy usage across our service territory by approximately 1.5% on average, decreasing associated fuel use for committed generation resources. This results in an environmental reduction of 1.9% of total CO2 emissions, due to reduction of power generated annually by fossil fuel plants across our service territory. Engineers and planners will get more granular data, enabling potential design and operational improvements. CECONY began implementing voltage optimization in Staten Island at the end of 2018 and across Westchester and portions of Manhattan in 2019 as well as Bronx and Brooklyn in 2020. As of the end of 2021, voltage optimization has been implemented across 80 of 82 load areas across CECONY’s service territory.

CECONY invested $993 million in our transmission and distribution systems in New York City and Westchester County in 2021 to improve the safety, reliability, and resiliency of the electric system. We invested in new customer connections and increased system capacity – including projects that facilitate the clean energy transition, replacement of defective or obsolete equipment, and system enhancements to reduce risk of outages or prolonged outages due to extreme weather events and high summer loads. Examples of resiliency investments include replacement of overhead lines with insulated lines that are more able to withstand impacts of extreme weather. To prepare for the summer 2021, CECONY invested in upgrades and reinforcements of distribution transformers, underground feeder sections, and spans of overhead cable.

We will invest roughly $1.8 billion in 2022 on continued improvements in system safety, reliability, and resiliency and continue to invest in the infrastructure upgrades needed to support clean energy goals. In preparation for summer of 2022, CECONY will install cable and equipment to meet summer peak loads.

As part of the clean energy transition, CECONY will invest approximately $268 million in 2022 towards new transmission infrastructure. The Reliable Clean City Projects (RCCP) are three multiyear transmission system projects that will create additional pathways for renewable energy and facilitate the retirement of select fossil generation units. All three projects are scheduled to be completed by the summer of 2025.

Electric Transmission Pipe Enhancement

We are planning to invest $26 million in 2022 to upgrade our underground dielectric fluid-filled electric transmission cables. We plan to address 3,500 trench feet of leak-prone transmission pipe-type feeder cables using the method of installing welded steel sleeves or barrels in corroded areas.

In 2021, we refurbished a total of 4,817 trench feet of piping. We expect to continue to make significant progress in research and development to reduce the potential for future dielectric fluid spills. We are also continuing to pursue efforts to replace existing dielectric fluid-filled feeders with solid dielectric cable.

The bulk of our underground transmission system consists of 660 miles of 69-, 138-, and 345- kilovolt feeders encased in steel pipe surrounded by high-pressure dielectric fluid (a non-toxic synthetic compound similar to mineral oil). The conductors inside our steel pipes are wrapped in paper insulation, filled, and pressurized with the dielectric fluid at a nominal pressure of 200 pounds per square inch. In some feeders the dielectric fluid is circulated and cooled to provide enhanced current-carrying capability. Approximately nine million gallons of dielectric fluid is contained within the feeder pipes and the associated pressurization and cooling plants.

Our leak-detection methods are some of the most sophisticated in the world:

• We use real-time monitoring of some of the largest volume feeders to constantly check their integrity.
• We infuse our dielectric fluid with a special tracer to help us rapidly locate and uncover leaks.
• If significant leaks occur, we selectively remove feeders from service, placing them on reduced pressure to slow the leak rate.

To repair leaks, we excavate to uncover the feeder pipes and apply a mechanical clamp to stop the flow. Permanent repairs are complete when a concentric steel barrel is welded over the clamp and the pipe. The pipe is then re-coated before the excavation is restored.

Reliability Performance

Consolidated Edison Company of New York, Inc. (CECONY) is a recognized leader in electric reliability performance, consistently earning industry awards. Our overall electric system reliability in 2021 was 99.996%.

CECONY’s system reliability exceeds national and New York standards

*National and New York State numbers from 2020

CECONY’s electric system is comprised of an overhead system as well as the largest underground network in the U.S.

Gas Main Replacement

In 2021, Consolidated Edison Company of New York, Inc. (CECONY) increased its distribution main replacement goal from 90 miles to 101 miles to make up for the impacts of the pandemic in 2020 that had required CECONY to reduce the 2020 goal by a corresponding amount. CECONY exceeded this goal by replacing 105 miles of cast iron and unprotected steel gas mains. In the last five years, CECONY has replaced 448 miles of such mains. Besides upgrades to the distribution system, CECONY continues to replace and upgrade the transmission system to maintain system reliability and to incorporate new requirements established by the federal Pipeline and Hazardous Materials Safety Administration in 2019.

In 2021, Orange & Rockland (O&R) replaced 22 miles of leak-prone pipe. This replacement level met O&R’s commitment to the New York State Public Service Commission. O&R also met its goal of replacing at least 66 miles over the past three years.

Fuel Mix and Generating Capacity

Con Edison is committed to advancing a clean energy future. We do not own coal-fired power plants and 70% of Company-owned generation capacity was sourced from solar and wind in 2021.

Additionally, Con Edison supports New York’s ambitious goals to transition to a low-carbon, clean energy future, which include but are not limited to 100% carbon-free power by 2040 and 70% renewable electricity by 2030. The fuel mix that produces the electricity delivered through our electric systems is not controlled by the Company and is allocated by the New York Independent System Operator.

Supply Chain

Our Supply Chain organization is committed to the Company’s transition to a clean energy future and reflects our values of environmental stewardship, integrity, diversity, equity and inclusion. In 2021, our procurement activities continued to support the clean energy transition while simultaneously upholding our company values and our strategic priorities of safety, operational excellence, the customer experience, and cost savings.

Our Investments in a Clean Energy Future

In 2021, Supply Chain’s sustainability related investments in clean energy and grid modernization included the execution of $89 million in battery storage contracts, $128 million in energy efficiency and demand management contracts, $41 million in smart meter AMI contracts, and $30 million in electric vehicles and EV charging infrastructure contracts.

Supporting Sustainability Through Our Vendors

We aim to continuously improve business practices by reducing our waste streams, reusing materials, and seeking new recycling opportunities. We have partnered with our largest suppliers of materials to improve business processes to control and reduce the environmental impacts associated with their energy usage, waste, and impacts on natural resources and transportation.

Last year, we recruited 40 of our vendors to complete sustainability assessments and develop measurable plans to improve their environmental performance in water and energy use, waste production and greenhouse gas emissions. We also implemented a new process to negotiate sustainability-related commitments into new contracts and monitor these commitments throughout our relationship with a vendor.

Partnering with Our Industry Peers

Con Edison is an active member of the Electric Utility Industry Sustainable Supply Chain Alliance (Alliance). The Alliance is an electric utility industry organization comprised of major utilities from across the United States that are committed to leveraging supply chain best practices to improve sustainability. Con Edison is taking an active role in collaborating with our industry peers to map utility supply chains to identify sustainability-related risks and develop guidance for mitigation.

Working with our colleagues in the Alliance we conducted a “hot spot assessment” last year to identify how supply chain activities impact carbon emissions. This assessment is providing insights on emission sources in key purchase categories so that we can effectively target our supply chain mitigation efforts.

In 2022, we will work with our industry peers to develop guidance for sustainable supply chain best practices and their implementation. We will also be developing tools that will equip our vendors with the capacity to track and report their efforts to reduce carbon emissions and support our Company’s commitment to clean energy.

Creating an Ecosystem for Innovation and Opportunity

In support of our Company’s commitment to the New York Climate Leadership and Community Protection Act (CLCPA) and the goal of a carbon-free grid by 2040, Supply Chain is partnering with our R&D team, to lead a collaboration with Brookhaven National Laboratory (BNL) to develop solutions to challenges such as grid modernization, weather modeling, battery storage, and renewable energy.

This collaboration is unique. We are developing an ecosystem of stakeholders comprised of utilities, national labs, government agencies, academic institutions, environmental justice advocates, minority- and women-owned business enterprises (MWBEs) and academic institutions. As part of this initiative, our Supplier Diversity team is partnering with stakeholder groups such as the National Minority Supplier Development Council and Historically Black Colleges and Universities. The program also recruits minority professionals into the energy industry and MWBEs to participate in the development and commercialization of solutions to challenges faced within the energy industry.

Supporting our Community

Con Edison’s clean energy vision includes an equitable clean energy future – a future in which all our residents not only benefit as recipients of our energy efficiency programs, but also have the opportunity to participate in the implementation of these programs as vendors and employees. Our Supply Chain organization supports this commitment through its Green Energy Opportunities Program and Clean Energy Academy, which is a partnership between our Energy Efficiency Program, Willdan Energy, the State of New York, and non-profit organizations like the Fortune Society, Green City Force, and Non-traditional Employment for Women.

Through these collaborations we are using energy efficiency projects subsidized by Con Edison to create contract opportunities for MWBE subcontractors and jobs for low-income New York City housing residents. So far, this program has yielded over $15 million in contract opportunities for MWBE subcontractors. It has also provided training to over 250 low-income New Yorkers in electrical mechanical building systems, including lighting, HVAC, and refrigeration. We will continue to expand this program and have secured $2.1 million to train over 900 students in 2022. Projects completed through this program also help Con Edison achieve its goals to reduce energy use and associated costs for customers.

Our Supply Chain sustainability initiatives help to support our commitment to create jobs within the communities we serve. In 2021, we purchased $362 million from women-owned and minority-owned businesses and our expenditures with small businesses were $582 million.

Supplier Diversity ExpendituresMWBE / Small Business Spend ($millions)

Governance

Experience has taught us that the combination of a solid financial foundation, operational excellence, the highest ethical standards, and the utmost regard for our employees and the people and communities we serve are the bedrock qualities of a successful company.

With that in mind, the Company’s Board of Directors establishes committees to oversee various aspects of the Company’s operations. Currently, the Board of Directors has six standing committees: (i) the Audit Committee, (ii) the Corporate Governance and Nominating Committee, (iii) the Executive Committee, (iv) the Finance Committee, (v) the Management, Development and Compensation Committee, and (vi) the Safety, Environment, Operations and Sustainability Committee (SEOS Committee), further information about each of which can be found here: https://www.conedison.com/en/about-us/corporate-governance/board-of-directors.

A standing committee of the Company’s Board of Directors, referred to as the Planning and Environmental Committee, existed as early as 1973. In 1995, this committee became the company’s Environment, Health and Safety Committee (EH&S Committee), whose primary responsibility was to oversee the Company’s efforts relating to the protection of the environment, sustainability, and the health and safety of Company employees and the public. At the end of 2018, the EH&S Committee was dissolved and as of January 1, 2019, the Company established a newly constituted SEOS Committee. The primary responsibility of the SEOS Committee is to oversee our efforts relating to corporate responsibility and sustainability, which includes, but is not limited to, operating in a safe, environmentally sensitive manner, guarding the health and safety of Company employees and the public, delivering value to customers, and fostering growth to meet the expectations of investors. The SEOS Committee, which meets at least four times a year, reviews at each of its meetings certain key performance indicators relating to climate risk, including energy efficiency, dielectric fluid management, SF₆ gas emissions, environmentally beneficial electrification, and solar connections. In 2021, the Company’s Board of Directors also received presentations that covered climate-related issues such as the Company’s Climate Change Adaptation Vulnerability Study and Implementation Plan, the Company’s clean energy goals and clean energy commitment, the Company’s climate resilience framework, the Company’s strategy for achieving a clean energy future, and the Company’s renewables strategy.

At the management level, the Company’s EH&S vice president, together with senior management, is responsible for developing strategic goals and programs to comply and support the Company’s commitment and continued work to achieve EH&S goals and operational excellence. As detailed in our Sustainability Strategy, the Company’s SEOS, Management Development and Compensation, and Corporate Governance and Nominating Committees work to strengthen sustainability across all aspects of the Company.

Part of senior management’s commitment to safety, the environment, operational excellence, and sustainability includes independent oversight. The corporate ombudsman’s office, reporting directly to the Company’s Chairman, provides employees with an independent office to which they may confidentially report suspected violations of our Standards of Business Conduct, including ethical, legal, sustainability or EH&S concerns.

Our environment, health, and safety review board (EH&S review board) includes an outside consultant who is an independent attorney. The EH&S review board reports directly to the Company’s Chairman. The role of the EH&S review board is to review the Company’s management of both regulatory and internal requirements and assess whether its implementation is consistent with the Company’s commitment to excellence.

Public policy decisions can have significant implications for our customers, the energy systems we manage, and the future direction of our Company. That’s why we participate in the political process, adhering to all the national, state, and local laws and regulations. Our engagement in the political process is grounded in and guided by our commitment to our Standards of Business Conduct.

For further details: https://www.conedison.com/en/about-us/corporate-governance/political-engagement

Enterprise Risk Management

The enterprise risk management program (ERM) was established to help protect the Company’s long-term value for its shareowners, customers, and the communities it serves. The risk management team works closely with senior management and employees across all four subsidiaries (CECONY, Orange & Rockland, Con Edison Transmission, and the Clean Energy Businesses) to identify emerging issues and trends, align risk exposure to organizational priorities, support risk-informed business decisions and resource allocation, and monitor and assess known risks using quantitative metrics, known as key risk indicators.

The cornerstone of Con Edison’s enterprise risk management program is its governance practices, which are designed to manage relevant and material risks to its strategy and operations, and to recognize emerging issues and trends that may shape future risk exposure. The team is led by the Director of Enterprise Risk Management. The Director reports to the Chief Financial Officer and works broadly with hundreds of employees across operating, shared services, and corporate functions to manage the risk profile.

The team creates and facilitates a risk management process framework, that includes risk identification, assessment, mitigation, monitoring, and reporting. The Audit Committee of the Board oversees the risk management framework and meets with the Director of Risk Management at least annually to discuss program initiatives and to provide strategic direction for the program.

The Board of Directors and its Committees provide oversight of the Company’s most material risks. These risks are managed by senior management. Public and employee safety, along with system reliability, the state of regulation within our service territories, and the viability of our business model, are some of the most important risks facing Con Edison. Some of these material risks are discussed here in Con Edison’s 2021 Annual Report.

To improve our ability to navigate an increasingly dynamic business landscape, the Company’s enterprise risk management framework includes a process to identify and monitor relevant emerging issues and trends. Review of emerging issues and trends extends our focus, identifying threats and opportunities that may develop in the next two to ten years. The following are a few of the issues and trends that are being monitored as they develop and evolve: the emergence and application of artificial intelligence, long-term implications of the COVID-19 pandemic, climate change’s impact on the Company’s operations, a trend towards decarbonization of heating systems, the electrification of the transportation sector, and integration of distributed energy resources and renewable generation to the traditional electric grid.

Stakeholder Engagement & Collaboration

Con Edison works closely with local communities to keep them informed, address their concerns, and convey our Company’s mission. We inform local community groups—including business improvement districts, chambers of commerce, and local development corporations—about major capital projects, new initiatives such as smart meters, energy efficiency programs, and how to do business with Con Edison. We coordinate with operating departments to respond to enquiries about topics like construction noise, service restoration, and outages. We also maintain close working relationships with key stakeholder organizations (including but not limited to environmental advocate and environmental justice organizations, consumer advocates, large customer groups) so Con Edison can listen to their priorities and identify support for proposed programs and investments, and any anticipated concerns. These relationships are also critical to our coordination during emergencies, and they help us collaborate on new initiatives.

Policy & Regulatory Impact

Consolidated Edison Company of New York, Inc. (CECONY) and Orange & Rockland Utilities, Inc. (O&R) support New York State’s clean energy policies and goals, including plans outlined under the Climate Leadership and Community Protection Act (CLCPA) to reduce statewide GHG emissions 85% from 1990 levels by 2050 and provide customers with 100% of their energy from emission free resources by 2040.

Our stakeholder engagement and collaboration are a key part of our policy and regulatory work. We work in partnership with our customers, policy-makers, various third parties, and other energy companies to seek innovative ways to realize the clean energy future. This includes exploring new ways to advance clean energy technologies through adoption of distributed resources, including energy storage and solar connected to the distribution system. CECONY and O&R have programs to reduce fossil fuel usage, providing incentives for customers to install electric-powered heat pumps and electric vehicle chargers, and have added incentives for converting customer heating systems to natural gas. We are also advocating at the State-level for the ability to own large-scale renewable generation. All of this is in addition to installing smart meters throughout our service areas and piloting new rate designs that will help customers manage their energy usage and bills.

We are active in regulatory proceedings, including those which seek to expand energy efficiency, develop offshore wind, establish transmission policy to advance clean energy objectives, provide customers with high efficiency electric heating options, amend regulatory structures to achieve CLCPA targets, enhance system resiliency in light of climate change, and grow the electric vehicles sector. We work with regulators, customers, and other stakeholders to develop solutions that will promote a clean energy future in a cost-effective way for all New Yorkers. We also regularly engage with key stakeholders on various regulatory and clean energy topics to keep an open dialogue. We serve these goals by being an active participant in the legislative process at all levels of government.

Strategic Partnerships

In 2021, we were proud to have provided over $12.6 million to support over 600 nonprofit organizations in New York City and Westchester, Orange, and Rockland Counties as part of our commitment to building strong communities and a clean energy future. Our programs strengthen the areas we serve through company initiatives, employee volunteer efforts, and financial contributions. Over $3 million of our portfolio is dedicated to environmental stewardship and the clean energy transition. We support local biodiversity through habitat remediation and conservation programs on land and in the water, and addressing the threat that climate change poses to all life on earth. Here, we highlight five of the many organizations we support:

Teatown Lake Reservation

Located in the heart of Westchester County, Teatown Lake Reservation is a 1,000-acre nature preserve with a mission to increase environmental literacy, encourage lifelong environmental stewardship, and promote sustainable living in the lower Hudson Valley.

Con Edison-owned electric transmission lines traverse through the reservation and create a unique habitat of shrubby open space which is uncommon in our company’s highly developed service territory. This environment is utilized by species such as box turtles, coyotes, and birds, and the partners have worked together to create educational signage for passing visitors and to implement educational opportunities for Con Edison employees to maintain the lines in a safe and environmentally friendly manner.

For nearly 60 years, Teatown has served as an environmental education center and a community resource, hosting a variety of classes and events for all ages. Con Edison has supported Teatown’s cross-generational educational programming and annual events since 1998. Utilizing in-person and virtual channels, Teatown’s environmental programs reach over 20,000 adults and students annually. These opportunities expose local students to STEM educational pathways and careers while highlighting a variety of topics surrounding sustainability and biodiversity to its adult audience.

Solar One

Climate change poses a threat to our society and our natural environment. To mitigate climate change, promote clean air in our city, and preserve living conditions for species across the globe, Con Edison partners with organizations helping our communities transition to a clean energy future. Solar One is an organization that provides an array of programs promoting urban sustainability and education that serves all five of New York City’s boroughs.

To help ensure that no one is left behind in this transition, Con Edison has been a critical partner and program sponsor of Solar One’s Community Power program, which provides renewable energy access by installing solar panels on NYC-subsidized apartment complexes and workforce training in NYC’s diverse communities. The projects across Brooklyn and Manhattan generate about 1 million watts of electricity, benefitting at least 400 low- and moderate-income Con Edison customers. We further partner with Solar One on their Green Workforce Training Program, which has trained over 4,000 adults in green building operations and maintenance, green construction, solar PV installation, and various relevant certification programs. This allows community members to play an active role in the transition while providing economic sustainability in the communities we serve.

To help ensure the next generation is prepared and engaged in this future, Con Edison has provided support and assistance in developing Solar One’s Green Design Lab (GDL) since its inception. A K-12 education program, GDL serves both teachers and students in environmental stewardship, increasing awareness of climate change, and preparing NYC youth with career focused intensive training. The organization also works directly with career and technical education schools, and they have reached over 1,000 NYC public schools through in-person and virtual instruction.

The Bee Conservancy

Pollinators provide essential ecosystem services by supporting the very foundation of our food chain – plants. Yet, habitat destruction and pollution threaten their existence. The Bee Conservancy (TBC) is a nonprofit organization dedicated to protecting bees, safeguarding the environment, and securing food justice through education, research, habitat creation, and advocacy. For the past 5 years, Con Edison has been a supporter of the organization’s Sponsor-a-Hive program. Con Edison funding has contributed to over 300 native beehives have been distributed throughout the life of the project, many of them reaching schools, community gardens, and nature centers throughout the 5 boroughs.

Con Edison is also a proud supporter of the Conservancy’s Bee Sanctuary, nested in the Urban Farm on Governors Island, NYC. The Sanctuary serves as an outdoor education, event, and conservation space where visitors learn about and engage with native pollinators and ecology. Through this important partnership, TBC was able to revamp the pollinator gardens and native hives at the Bee Sanctuary during the pandemic. Today, the Conservancy provides both virtual and self-guided community science programs to educate children of the importance of protecting the native bee species and native plants.

Gowanus Canal Conservancy

Waterways are essential for sustainability, providing habitats for species, food, recreation, and economic opportunities in our communities. Since 2006, Gowanus Canal Conservancy (GCC) has been dedicated to facilitating the development of a resilient, vibrant, open space network centered on the Gowanus Canal in Brooklyn, NY. GCC works with both the public and schools in the watershed, advocating to build and maintain innovative green infrastructure around the Canal.

Since 2010, Con Edison has partnered with GCC to support programs that benefit both the community and the waterway. Their Blue Schools program educates middle schoolers about watershed ecology, while their Community Science program provides water quality testing in the canal and throughout the city, to protect both public and ecosystem health. Our support of Gowanus Canal Conservancy will also enable high school students to help scientists design, fabricate, and install modular mussel habitat and conduct monitoring and analysis. Students will learn how Atlantic Ribbed Mussels can help improve the Gowanus Canal’s polluted waters, why mussel habitat is at risk, and solutions that community scientists are researching. By engaging the community in the preservation of this important ecosystem, we aim to enable the development of sustainable solutions for the future.

Rockland Farm Alliance

Sustainability requires that we reexamine the way we interact with the environment to produce food and feed our communities. The Rockland Farm Alliance (RFA), located in the heart of New City, NY, has a mission to conserve farmland in Rockland County and beyond by bringing our communities together through local, sustainable farming projects and agricultural education programs which reconnect us all to real organic food from the soil up.

Orange & Rockland Utilities is a proud supporter of their Outdoor Experimental Education program, which provides students the opportunity to develop hands-on gardening and farm work skills. In addition, their Project Green will help families experiencing food insecurities and food inequity. RFA distributes fresh healthy greens to thousands of families in need.

Shareholders

We are the longest, continuously-listed company on the New York Stock Exchange and have increased dividends to shareholders for 48 consecutive years.

For more information, refer to our Shareholder Services page (https://www.conedison.com/en/investors/shareholder-services).

Energy Efficiency, Renewables & Distributed Energy

As part of our firm commitment to renewable energy, Con Edison’s Clean Energy Businesses continued growing by investing approximately $400 million in renewable projects in 2021 and operating a total of 3,061 megawatts of aggregate solar and wind capacity at the end of 2021. Consolidated Edison Company of New York, Inc. (CECONY) and Orange & Rockland, Inc. (O&R) remain committed to the clean energy goals of both New York State and New York City. With ambitious targets for Distributed Solar, Energy Storage and Zero Emissions Vehicles, both Companies continue to work with policy makers and stakeholders to remove barriers to Distributed Generation (DG) interconnection. Both CECONY and O&R publish a Distributed System Implementation Plan every two years, most recently in June 2020, that serves as a five-year outlook in areas such as Integrated Planning, Information Sharing and Market Services. The Implementation Plan is used to engage the stakeholder community in the processes and programs that continue to shape the Distributed System Platform.

CECONY and O&R continue to participate in the Interconnection Technical Working Group (ITWG) and the Interconnection Policy Working Group (IPWG), in which we work with the DG community on issues that advance improvements in the Standard Interconnection Requirements (SIR) and policies that shape the connection process. In addition, both Companies continue to publish Hosting Capacity Maps for Distributed Solar and Electric Vehicle development. Through the bi-annual Hosting Capacity Stakeholder Working group we have most recently begun to solicit feedback and align on approaches to add Storage Hosting Capacity maps to the portal in 2022.

CECONY and O&R continue to work with the New York Independent System Operator (NYISO) on its implementation of a Distributed Energy Resource (DER) Aggregator Market in compliance with FERC Order 2222. A DER Aggregator Market will allow smaller DGs connected on the distribution system to participate in the NYISO Wholesale Energy Market. Both Companies understand the need to continue to expand the value sets that DERs can leverage from the electric grid as well as use these resources to provide services that can enhance grid flexibility. Technology continues to be a valuable component to overall value and through an effort by the New York State utilities, there is an increasing focus on smart inverter functionality, which is the ability for an inverter to take operating signals and parameters and adjust based upon grid needs. Smart inverter functionality will be a core component to enhancing the relationship between the distribution system and DG.

Finally, CECONY and O&R recognize the value of increased data and information sharing. Beginning in 2021 and moving forward, CECONY and O&R are working with stakeholders and the PSC to investigate more efficient and robust means of exchanging system and customer data through the Integrated Energy Data Resource and Data Access Framework efforts.

Energy Efficiency & Demand Response

Consolidated Edison Company of New York, Inc. (CECONY) and Orange & Rockland, Inc. (O&R) offer a broad array of energy efficiency initiatives designed to reduce greenhouse gas emissions, lower customer bills, and give New Yorkers control over their energy choices. CECONY and O&R are leaders in sustainability and have ramped up energy efficiency efforts that are facilitating New York’s ambitious clean energy goals. We are working with partners across our service territory to better serve low- and moderate-income customers as well as providing choices to our customer to reduce their reliance on fossil fuels through adoption of beneficial electrification technologies such as heat pumps and electric transportation. Additionally, CECONY and O&R are increasing its focus on achieving deeper and longer-lived energy efficiency savings by targeting more impactful technology upgrades.

Our customers are as diverse as the area we serve. That’s why we have targeted efficiency programs to help us deliver cost-effective and customer-centric energy efficiency offerings that emphasize the clear benefits and impacts of energy efficiency. We focus on four primary customer segments—commercial and industrial, small business, multifamily, and residential—designing our offerings to meet each customer group’s needs. Our goal is to give customers multiple options and opportunities to reduce their energy use.

In 2021, CECONY provided electric and gas customers over $200 million in incentives to choose energy-saving HVAC, lighting, building management systems, and other equipment. Customer upgrades last year made through CECONY energy efficiency programs reduced electrical usage by 867,280 megawatt hours and saved 711,029 dekatherms of gas—that is the equivalent to taking more than 99,654 cars off the road or powering 55,180 homes for one year. Technology is giving households and businesses new ways to reduce energy use, and CECONY is at the forefront in helping customers get more value for their money while protecting the environment. In 2021, CECONY invested $97 million on over 9,700 customer projects installing heat pumps as part of our Clean Heat Program.

O&R customers who upgraded to high efficiency energy-saving HVAC, lighting, building management systems, and other energy efficient equipment received $5.0 million in incentives from us in 2021. O&R provides instant in-store rebates and on the MY ORU Store, our online customer marketplace, to make it easy for customers to make energy efficient choices. In addition, our Rockland Electric Company (RECO) customers now have the opportunity to participate in rebate programs with a portfolio of energy efficiency and demand response programs which launched in mid-2021. This three-year, $18.1 million plan will help customers reduce their energy bills, convert to clean heating technologies, reduce peak demand, and lower their carbon emissions.

The My ORU Store provides a one-stop shop, contact-less shopping experience by introducing customers to innovative smart home technologies, including smart thermostats, security cameras, smart plugs, wireless dimmable LED lighting, and electric vehicle chargers. Through instant rebates at checkout, incentives were given to customers to help lower cost and increase adoption of energy efficient technologies. Through the My ORU Store, O&R partnered with the local water utility, SUEZ NY, to support its water conservation program by offering instant rebates to mutual customers on water and energy efficient products. This collaboration continues to help customers save water and energy and in turn lower their utility bills.

Along with “virtual advisors”, available to help customers find appropriate products and services, the My ORU Store platform provides educational information about solar generation and energy storage, and renewable heat pump technology. More recently smart thermostat purchasers were given the opportunity to enroll in the demand response program during the online transaction process. By bundling offers, such as products and programs, the customer enrollment process is streamlined and program participation has increased. With the recent launch of energy efficiency programs in RECO’s New Jersey service territory, the My ORU Store platform was expanded to include a new platform for RECO customers. The platform, branded with the familiar RECO logo offers similar products, services, and online tools as well as rebates on electric measures including lighting, advanced power strips and smart thermostats.

O&R is using technology to give households and businesses new ways to reduce their energy use, and get more value for their money, all while supporting the environment. For example, in 2021, upgrades made by customers through our energy efficiency programs reduced electrical usage by 73,000 megawatt hours and saved 37,000 dekatherms of gas. This reduced our carbon emissions by more than 194,000 tons, which is equivalent to taking more than 41,000 cars off the road.

Of the total O&R rebates issued in 2021, two projects stand out. An industrial recycling company upgraded its inefficient lighting with LEDs and received a rebate of $148,000, saving over 1,800 MWh, and a payback on its investment of just under two years. A local hospital received a $126,000 rebate to address inefficient lighting, saving over 1,265 MWh of energy.

Annual Incremental CO₂ Reductions Through Energy Efficiency Programs(metric tons)

Data is from CECONY + O&R

Renewables

Consolidated Edison Company of New York, Inc. (CECONY) and Orange & Rockland, Inc. (O&R) continue to support New York State’s ambitious clean energy policies, including the State’s goal to source 70% of its energy from renewable resources by 2030, 100% greenhouse gas emissions (GHG)-free electricity by 2040, and an 85% reduction in New York State’s GHG emissions by 2050.

For the past decade, CECONY and O&R, along with Sustainable CUNY at City University of New York, government agencies, and other parties, have encouraged residents and businesses to consider solar to reduce their energy bills and protect the environment. Our customers are responding. Using the power of the sun, our customers installed more than 581 megawatts of clean, renewable power by year-end 2021. This total includes 42,992 CECONY installations and 10,659 O&R installations.

Con Edison Inc. believes that all customers should have access to clean energy, regardless of income level, whether they own or rent or whether they live in a house or an apartment.

CECONY continues to explore opportunities to be more innovative in renewable and energy storage installations. In 2021, CECONY relaunched a piloted device, ConnectDER, enabling residential customers to realize additional savings while providing the Company’s engineering teams with solar production data to better forecast and plan system needs. CECONY also enhanced microprocessor relays to allow additional solar capacity to export power into our network systems, enabling the construction of additional community solar projects at higher capacities across the territory.

O&R continues interconnecting distributed energy resources (DER) at an increasing rate, and is actively seeking opportunities to increase hosting capacity. O&R is participating in a Smart Inverter Working Group to establish best practices for enabling smart inverter technology throughout the service territory. O&R began the NSYERDA PON 4128 Smart Inverter project that will test smart inverter functionality in a laboratory environment, and then install the inverters in the field to confirm system interoperability. O&R continued participation in the IEEE Interconnection Commissioning Program to identify, train and certify individuals for the commissioning of any installed DER interconnection to enhance compliance with IEEE 1547, which informs critical utility engineering and business practices for DERs in markets worldwide. A streamlined, standards-based process for interconnecting renewables and other DERs could reduce the cost and complexity among utilities, developers, and owners.

The O&R Clean Heat program exceeded our expectations in 2021, achieving twice the annual target for heat pump energy savings. Both contractors and customers are realizing the benefits of this efficient clean heat renewable alternative that significantly saves energy and reduces carbon emissions compared to the fossil fuel alternatives.

Through these initiatives, CECONY and O&R are helping realize a greener energy future.

As noted above, both CECONY and O&R continue efforts to expand distributed solar and other distributed energy resources throughout each service territory. The chart below shows cumulative interconnection for distributed solar since 2019:

Energy Storage

Consolidated Edison Company of New York, Inc. (CECONY) and Orange & Rockland Utilities, Inc. (O&R) is helping New York achieve its ambitious energy storage goals of 1,500 megawatts (MW) by 2025 and 6,000MW² by 2030 through a variety of efforts. Energy storage plays a critical role in our clean energy future and we continue to actively engage with the State’s Department of Public Service and the New York State Energy Research and Development Authority to support storage policy goals.

In 2019, CECONY and O&R issued a request for proposals (RFP) as part of our bulk solicitation program that solicited dispatch rights to utility-scale storage projects connected directly to the grid. The first project awarded a contract as a part of the bulk storage solicitation program is a 100MW energy storage system being developed on the previous site of the Poletti Gas Turbine Plant in Astoria, Queens. This project is one of many CECONY plans to award in order to achieve a minimum of 300 MW of energy storage dispatch rights. The next round of projects, subject of an RFP released July 2021, will target operation in 2025. While O&R did not identify a winner for its first round of solicitation for its bulk storage effort, O&R subsequently amended its RFP to take into account feedback from the vendor community. O&R released an RFP for the second round of solicitation in 2021 and is currently in the process of evaluating the various vendor bids and identifying at least 10 MW of battery storage in the O&R service territory. CECONY and O&R are also leading a variety of projects and programs where we are testing new storage business models, building utility capabilities, engaging third party providers, and supporting customers to interconnect energy storage.

Through 2021, CECONY has interconnected a total of 275 distribution-connected energy storage systems, totaling 18.3 MW of capacity, and O&R also interconnected 117 total projects for a total of 4.7 MW. Of the 117 O&R projects, 115 were behind-the-meter residential energy storage systems, totaling 1.1 MW of capacity. In 2018, CECONY commissioned its first utility-owned storage project, a lithium-iron phosphate battery designed for 2 MW / 12 megawatt hours (MWh) in Ozone Park, Queens. The battery was built to provide grid support in the Brooklyn Queens Demand Management area. Last year, the battery was deployed 23 times to provide demand relief during summer heat. CECONY plans to use this battery to provide market services to the New York Independent System Operator (NYISO). Building on this model, CECONY requested funding and received authorization for both utility-owned and third party-owned “make ready” energy storage in its current rate case covering 2019 – 2022. CECONY will be installing a utility-owned 7.5 MW / 30 MWh battery energy storage system at a Staten Island substation to provide peak shaving, demand relief, system support to absorb power during periods of high customer solar output, and replace temporary fossil generators needed during system contingencies. In addition, this battery storage system may provide market services to the NYISO. CECONY will also be working on a first-of-its-kind “make ready” storage model for the co-location of 4.95 MW / 15.6 MWH of energy storage and 18 electric vehicle charging (EVC) stations on utility property with public access to EVC. CECONY is facilitating direct access to the distribution grid to monetize multiple value streams and develop a better understanding of how energy storage can facilitate the adoption of EVC on the grid through localized peak demand management.

O&R commissioned its first utility-owned storage project in Pomona, NY in December 2020. The battery storage system is currently 3 MW/12 MWh with the potential to be upgraded to 4.5 MW/ 18 MWh. O&R currently maintains operational control over the Pomona battery storage system to support the reliability of its distribution system and provide peak demand reduction. The Pomona battery storage system has successfully provided peak demand reduction and enhanced system reliability. Following its initial energization in December 2020, O&R dispatched the battery storage system throughout the summer of 2021 for demand relief purposes. O&R’s visibility into its distribution system needs allows it to dispatch the battery storage system when beneficial to the system. To date, the battery storage system has been discharged for demand relief only during the summer period and otherwise is not in use.

Renewable Energy and our Facilities

Con Edison’s Clean Energy Commitment aims to provide 100% clean power for the buildings it occupies by 2030. These facilities equate to approximately three million square feet of office space and work locations. In anticipation of 2030, we’re implementing clean energy solutions at both existing facilities and new construction projects. At the end of 2021, Consolidated Edison Company of New York, Inc. (CECONY) released a RFP to solicit recommendations from architectural, engineering, and energy consulting services for the best course of action to achieve our 100% clean power goal at all Company-owned facilities.

Reducing the Carbon Footprint of Our Facilities

CECONY is pursuing Leadership in Energy & Environmental Design (LEED) certifications for a variety of real estate projects. We are in the process of finalizing our LEED certification in Building Design and Construction for one of our data centers. LEED certification is a rare designation for data centers, and ours will be one of approximately 20 LEED-certified data centers in the U.S. and 70 LEED-certified data centers globally. The servers at the data center were replaced with new, energy-efficient servers. Modular air-cooled chillers were installed to cool the servers. Modular air-cooled chillers do not require the large amount of water consumed by an evaporative cooling tower and water-cooled chiller system, providing a sustainable solution for the often water-intensive process of cooling servers. These chillers can decrease and vary their power consumption to match the heat load of the building and provide greater system reliability. The installation of these chillers resulted in over 40% water use reduction. The data center boasts 100% LED interior and exterior lighting. Other environmental design improvements include the addition of bike racks and a solar-reflective roof covering.

We are actively pursuing LEED certifications for two other projects. The renovation of our former Van Nest Cable Lab will be evaluated for sustainability and energy efficiency under the LEED Interior Design and Construction (Commercial Interiors) framework. The former cable lab will become an office space for employees in the Bronx. The project will prioritize the use of locally-sourced materials, interiors will be furnished with recycled carpeting and furniture to the extent feasible, and an all-electric HVAC system will be installed. LED lighting and low-flow water fixtures are also key features of this renovation.

We are currently designing the new Sherman Creek Service Center with the goal of achieving at minimum LEED Gold certification for new office construction. This new service center will include both a green roof and a solar canopy that will help power the facility. The station will also have an all-electric variable refrigerant flow HVAC system in lieu of a gas-fired system.

Powering our Headquarters with Solar

As a strong proponent of solar power, Con Edison installed its own photovoltaic electric generation system at the CECONY headquarters in 2014. The photovoltaic array was installed on the roof of the 19th Floor. A major design goal of the project was to integrate the largest possible PV system given the limited space available. Today, the system consists of 209 solar panels, which accumulate to a total 53.295kW DC nameplate capacity. This PV electric generation system helps power our headquarters building, reducing our own facility’s carbon footprint.

Talent Attraction, Development & Retention

Attraction

Learning and Inclusion continues to attract, develop, and retain talented employees who possess a broad array of skills, backgrounds, and experiences. We know that diversity is a key driver of innovation and high performance, and therefore our goal is to capitalize on these benefits while also resembling the communities we serve.

At Con Edison, we offer many exciting career opportunities, and we continue to stand out as an employer of choice. In 2021, 709 new employees joined the company, including 21 percent women and 56 percent people of color.

Our talent acquisition strategies are designed to attract and engage candidates from many sources, including, targeted job fairs, social media, professional industry associations, the military, and partnerships with educational institutions. Our partnerships are important to us as they enable us to develop a diverse talent pipeline of candidates throughout our recruiting territory. For example. collaborating with Nontraditional Employment for Women, Hour Children and Helmets to Hardhats are key resources in helping us attract more women to non-traditional jobs. We also work with community, nonprofit, and professional groups, including the Society or Women Engineers (SWE), National Society of Black Engineers (NSBE), Society of Hispanic Professional Engineers (SHPE), National Action Council for Minorities in Engineering (NACME), and American Association of Black in Energy (AABE). To further invest in the communities we serve, Con Edison partnered with several New York City Career and Technical High Schools to support their curriculum development and develop strong school-to-industry pipelines.

This is an exciting time in our Company, and we are well positioned to engage students who are interested in careers in the utility sector. Through our Leadership Development program, we recruit recent college graduates and provide them with opportunities to gain leadership skills and practical experiences that promote critical thinking and analysis. Our 2021 LDP cohort consists of 48 percent women and 64 percent people of color.

Our veteran strategy continues to be an important part of our talent pipeline. We recruited former active-duty personnel and current members of the National Guard and Reserves. Con Edison is also an active member of Veterans in Energy in Washington, DC. which provides the company with a national presence in the Veterans sector. In 2021 we continued to partner with the Veterans Administration to market career opportunities to disabled veterans. We engaged with many veteran strategic partners to help build and support our veteran pipeline, including, Soldier for Life, Ft Drum NY, NYS Department of Military Affairs, and The Wounded Warrior Project. In 2021, among other awards, Con Edison was recognized for its veteran hiring efforts in the Military Times – “Best for Vets” Designation, for the fourth year in a row and Vets Index 2021 “Three Star Award”. By leveraging the Veterans of Con Edison Employee Resource Group and over 200 strategic partnerships, we hired 68 veterans in 2021.

Development & Retention

We care about our employees, and we are committed to their success. We make it a priority to help them build skills and knowledge to further their growth and careers, including developing additional leadership competencies, attending continuing education classes, and providing tuition reimbursement.

Our corporate mentoring programs – “Corporate Mentoring Program” and “Executive Mentoring Program” – provide multiple opportunities to connect more skilled and experienced employees with newer or less experienced employees to share insights and professional guidance, while also growing important networks within the company.

We understand the critical role that sponsorship plays in career development and advancement. In 2021 we launched our Executive Sponsorship Program, a 24-month experience designed for high potential leaders. The program supported high participation among women and people of color. Providing underrepresented groups with executive connections is an important step in our efforts to develop our employees and build a broadly diverse and inclusive leadership team.

To encourage wide-spread career development, our suite of career management resources includes internal and external training to enhance job knowledge, career development workshops, and a robust online career management site. Our leadership curriculum is designed to improve the ability of managers to lead employees effectively, handle problems creatively, and shepherd teams to elevated performance. More than 7,600 employees attended these programs and continue to benefit from an array of tools, assessments and resources that assist with their professional development.

As we moved toward a hybrid work environment, we focused on the needs of our leaders and proactively offered a new series of short, focused virtual workshops on Navigating the Next Normal. This sequel to our prior years’ series provided guidance, tips, and tools for leaders of employees returning to the workplace and working in distributed teams and reinforced key themes of open communication, enhancing productivity, and creating synergy.

The past two years saw the pandemic’s impact on our society in significant ways. As part of our response to the COVID crisis the company offered mental health counseling, bereavement counseling, parenting and home school resources, emergency childcare for essential workers, and training for managers on how to manage with empathy and compassion.

At an annual turnover rate of approximately 6.4 percent, our overall retention rate continues to be high, with 42 percent due to retirements. We attribute the company’s low turnover to our persistent focus on diversity, equity and inclusion, employee development, and commitment to fostering a culture where everyone feels welcomed and valued.

Skills Training

Our critical focus continues to be to ensure our workforce has the right skills, knowledge, and capabilities to work in a safe manner while meeting the needs of our customers. To achieve this goal, we provide continuous state-of-the-art training and development to our employees in a wide variety of areas.

The company offers robust training programs in gas, electric, customer, steam, construction, engineering, and substation operations, as well as driver training. These programs ensure employee skills, knowledge, and performance are maintained at the highest levels. Our Learning Center fosters a culture of continuous improvement, centered on safety, operational excellence, diversity, equity and inclusion, and enhancing the customer experience.

With safety as our key business priority, we partner with our operating organizations to strengthen our focus on a zero-harm culture, which includes several digital learning modules. Operational Excellence Guiding Principles are integrated into our training curriculum and highlight the need to respect the complexity, power, and unforgiving nature of our energy systems and encourage all to manage them safely. This effort includes a focus on Human Performance Improvement (HPI) tools, mindfulness, psychological safety, and cyber awareness.

In 2021, we partnered with our internal business partners and stakeholders to meet the high testing and training demand for new entry-level utility workers. We safely and successfully tested and trained 230 employees for Electric Operations. Our purposeful field visit program continues to support our efforts to enhance the learning experience, using insights from live events to assess potential gaps and training requirements and providing opportunities for real-time constructive feedback.

Training Effectiveness Committee are the liaison between our operating areas and training teams, and they serve to achieve, improve, and maintain quality and consistency in training. Ongoing meetings with subject matter experts from various areas allow a collective review of training activities, including curriculum, new policies and procedures, annual goals, career path and tests to ensure consistency, relevancy, and effectiveness in training offerings.

In 2021, we made headway in designing and implementing the early phase of our new digital learning initiative, which promises to transform how our employees learn now and into the future. This is an opportunity to innovative and leverage technology to improve curriculum content and to provide employees with deeper learning experiences in-and-outside of the classroom. We have already begun to enhance our digital portfolio to incorporate various learning tools to facilitate learning, such as e-books and technical training. Also, 132 digital tools, including 63 virtual classes, were created in 2021.

Our strategic focus on developing our people benefits our employees and helps us attract and retain a richly diverse and inclusive workforce at all levels.

Workforce Diversity, Equity, & Inclusion

At Con Edison, we have a long-standing commitment to diversity, equity, and inclusion. Our vision is to be a company whose values and behaviors foster a culture of inclusion and respect for all. We know that a diverse and inclusive company is a stronger, more successful company. Despite this company’s longstanding commitment, we recognized the need to redouble our efforts to making sure our workplace is inclusive and respectful.

Our corporate Diversity, Equity & Inclusion (DEI) strategy continues to anchor our direction to ensuring that our employees feel seen, heard, and valued for their unique and individual talents. Our Diversity, Equity & Inclusion strategy is built on four key elements – ongoing learning and competency building; inclusive and visible leadership support; reviewing our systems, policies, and procedures to eliminate potential barriers to inclusion; celebrating and acknowledging the diversity of our workforce.

In addition, we implemented our 14-point Action Plan, built on a two-pronged approach:

1. Data-driven change to ensure that our employees at all levels reflect the diversity of our communities; and
2. Culture transformation to drive the behaviors and mindsets that support a diverse, equitable and inclusive workplace. Our Action Plan is supported by our DEI Task Force.

Our transformation will not be complete until every one of our employees feel valued, included, and able to reach their full potential. To achieve this, we need to back up our commitments with action, implementing systems, policies, and processes that support and sustain inclusion.

We are making progress on our DEI goals, and we will keep working at it. We are leveraging more data to help us further understand gaps that may exist and help inform decision making; teams are becoming more diverse, including our leadership team; our grassroots networks, such as Employee Resource Groups and Local DEI Councils are facilitating critical conversations to increase awareness about cultural differences and to educate us about a variety of topics relevant to the business. We remain committed to ensuring that we are tapping the full talents of our workforce and creating an environment in which our employees feel respected, valued, and appreciated.

Our people will always be our greatest strength—and the incredible range of culture, experience, and perspective makes the company stronger.

To learn more, read our Annual Diversity & Inclusion Report.

Volunteerism

Despite the upheaval created by COVID-19, employees at Con Edison and Orange & Rockland Utilities, Inc. (O&R) answered the call to donate their own time and resources in the communities we serve. Keeping the health and safety of our workers and the general public top of mind, we engaged in many virtual volunteer activities throughout the year. We also maintained social distancing while working on various outdoor projects in our service area. To further enhance the quality of life in our communities, we continued to provide financial support, in-kind contributions and service on boards of hundreds of nonprofit organizations dedicated to the arts, environmental stewardship, civics and education.

As part of our commitment to a clean energy future, Con Edison employees lend their time and skills volunteering with partner groups committed to environmental equity and helping disadvantaged communities.

In 2021, 227 Company employees volunteered a total of 2,002 hours at community events and programs in our service territory. Employee volunteerism is integral to the Company’s support for environmental stewardship. For the first time, we brought together three nonprofit partners for a day of service on Governors Island. Our employees volunteered on Governors Island with Billion Oyster Project, Grow NYC, and Friends of Governors Island. Volunteers spent the day building oyster gabions (artificial reef cages) for the Hudson River, preparing teaching gardens, as well as removing invasive species on walkways. Volunteer opportunities both strengthen the Company’s connections to local communities and make Con Edison employees a part of our commitment to environmental partnerships.

We also participated in virtual volunteer events that support environmental education, including career panels, mentoring, and tutoring. These opportunities help us spread awareness about Green Jobs, as well as internships and training programs. We are particularly proud of our efforts to provide help and inspire hope through volunteerism during a time that has challenged us as never before.