Chairman & Chief Executive
Officer’s Letter
As New York’s largest energy provider, Con Edison is playing a central role in the state’s historic transition to 100 percent clean energy by 2040.
New York’s global leadership on climate and clean energy policy inspires us and informs our work. Meeting the state’s goals will require a colossal buildout of renewable energy production, investments in a flexible and resilient power grid, the electrification of heating and transportation systems at massive scale, and a reimagining of the gas-delivery system as we move aggressively away from fossil fuels.
None of this will be easy, but the opportunities are enormous for New York and for Con Edison. Our Clean Energy Commitment, which we expanded in 2021 alongside our state’s much bolder ambitions, guides the decisions we make.
Con Edison celebrated its 200th anniversary this year, tracing its origins to a small gasified whale oil company in lower Manhattan. I just finished my second year as chief executive, having started at the company 35 years ago. Anyone working for a company with such a rich history understands that their own opportunity to make a mark is relatively brief. Our workforce of today stands on the shoulders of those who have kept homes warm and lights on in New York since the early 19th century. For all its history, I believe this next chapter of Con Edison’s story will be its most important and rewarding yet.
Sustainability means many things to Con Edison, but above all, it means meeting the needs of the 10 million people who rely on us for energy in New York City, Westchester, Orange and Rockland Counties in a way that’s consistent with the fight against climate change. That will require us to decarbonize our own facilities, deliver climate-neutral energy to our customers, and harden our infrastructure so it can withstand the impacts of climate change.
Con Edison’s workers are tasked with achieving these ambitions, while maintaining safe and reliable service, and keeping customer affordability in mind. Project by project, street by street, we are building a grid that will deliver carbon-free energy by 2040.
In the years ahead, demand for electricity will rise sharply while demand for natural gas falls, as our customers shift to electric vehicles and keep warm with electric heat pumps. Meeting that electric demand growth requires transformative investments in the grid today. In 2022, we began building our Reliable Clean City project, an $800 million transmission upgrade that will boost our ability to delivery electricity in New York City’s outer boroughs, strengthen reliability and pave the way for more renewably produced electricity on the system. We’re preparing our grid for an influx of offshore wind power, and we’re helping build New York’s transmission superhighway, connecting upstate renewable generation with downstate demand.
At the same time, we’re making it easier for customers to install rooftop solar panels, battery systems, EV chargers and other clean energy technologies. The grid of the future will work in both directions: delivering clean power from large renewable generators, while aggregating and orchestrating smaller systems owned by our customers.
Con Edison’s customers have installed more than 50,000 solar energy systems to date. Through our PowerReady program, we’ve supported more than 2,600 EV chargers, and our goal of 23,000 chargers by 2025 means huge growth is on the immediate horizon. We’ve helped more than 2.5 million customers make energy-efficiency improvements, and New York’s market for electric heat pumps is scaling up rapidly. We’re nearly finished installing smart meters across our customer base. In short, the energy business is not just about large plants and infrastructure networks anymore: it’s personal, and we’re supporting the trend toward decentralization.
We recently finalized the sale of our nationwide solar development business, known as the Clean Energy Businesses, to RWE Renewables America for $6.8 billion. The sale will allow Con Edison to deepen our focus and investments in our home state of New York, where we can make the biggest impact. We believe the business will thrive under RWE’s ownership and help to accelerate solar and wind construction across the U.S.
Meanwhile, we continue to advocate for owning renewable generation in New York. The state’s monumental ambition for renewables requires an all-hands-on-deck approach. With Con Edison’s deep expertise and resources, and our long track record of building and operating complex infrastructure in New York, we could play an instrumental role in helping the state meet its clean energy targets while passing along the cost benefits of renewable projects directly to our customers.
Sustainability means fostering a vibrant workforce that’s passionate about the job at hand, equipped to meet the challenges ahead, and reflective of the communities we serve. More than simply a great place to work, we want our employees to know they are making a lasting impact on society. As our workplace becomes more diverse, equitable and inclusive, the company becomes stronger, more resilient, and more intertwined with New York’s communities. Our employee resource groups are bringing people of diverse backgrounds together in new and exciting ways. We are committed to ensuring that everyone who works here feels welcome, heard, and respected.
In this year’s Sustainability Report, you will see several new sections that reflect the adjustments we are making on our journey. The new sections cover such topics as environmental justice, biodiversity protection, human rights, the elevation of community and stakeholder engagement, and clean energy pilot programs.
As you read this year’s report, you will see why Con Edison is a clean energy leader, and why the emphasis we place on reliability, safety, operational excellence, and customer service will sustain us and the communities we serve on the road ahead. After 200 years, we are confident that Con Edison’s best days are ahead, and the benefits will be shared by our customers, our workers, our communities, and our shareholders.
— Tim Cawley,
Chairman and Chief Executive Officer, Consolidated Edison of New York, Inc.